comparison of sbi and pnb

“Summer Training Project Report on Comparative AnalysisOf State Bank of India and Punjab National Bank”

SUMMER TRAINING PROJECT REPORTSUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

DEEGREE OF MASTER OF BUSINESS ADMINISTRATION

SESSION – 2014-16

SUPERVISED BY: SUBMITTED BY:

Miss Akanksha Rohit Kumar

ASTT PROF. UID-14MBA-1259

CHANDIGARH UNIVERSITY, GHARUAN MOHALI

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DECLARATION

I ROHIT KUMAR, hereby declare that the work presented herein is genuine work done

originally by me and has not been published or submitted elsewhere for the requirement of a

degree program. Any literature, data or works done by others and cited within this dissertation

has been given due acknowledgement and listed in the reference section.

(ROHIT KUMAR)

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GUIDE CERTIFICATE

This is to certify that ROHIT KUMAR of M.B.A. 3rd semester bearing university UID number—

14MBA1259 has completed his summer training project under my guidance.

Project Guide :

(Miss Akanksha)

ASTT PROF.

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ACKNOWLEDGEMENT

I, ROHIT KUMAR, MBA Student in CHANDIGARH UNIVERSITY, GHARUAN is highly

grateful to all those who guided me in completing this project.

First of all, I would like to pay my heartiest thanks to STATE BANK OF INDIA SHIMLA

Branch, Especially Mr.VARUN VASHISHT, Relationship Manager at State Bank of India

Summer Hill Shimla-5, who provided me such a wonderful opportunity to do Summer Training

and provided their valuable suggestions in understanding the work of Research Project.

Last but not the least, I would like to thanks all faculties of CHANDIGARH UNIVERSITY,

GHARUAN, who gave me the useful tips and suggestions regarding project and my Project

Guide Dr. Poonam Jot Kaur.

(ROHIT KUMAR)

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PREFACE

M.B.A. is a course which combines both its theoretical and practical aspects in the field of

management.The purpose of this research methodology report is to expose the students of

management sciences to real business situation.

As complementary to my summer training report. I prepared and submitted a summer training report on “Summer Training Project Report on Comparative Analysisof State Bank of India and Punjab National Bank” .It was an attempt to present on account of practical knowledge and observations gathered during the research period.

Education becomes more meaningful when its theoretical aspects are combind with practical

experience.This provides an opportunity to the students to improve their understanding of the

study.

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INDEX

CHAPTERS

NO. CHAPTERS NAME PAGE NO.

1. INTRODUCTION OF ORGANISATION AND

TOPIC1.1-INTRODUCTION OF TOPIC 7-9

1.2-INDIAN BANKING SYSTEM 10-11

1.3-CLASSIFICATION OF BANKS 11-13

1.4-INTRODUCTION OF ORGANISATION

STATE BANK OF INDIA

13-42

1.5- INTRODUCTION OF ORGANISATION

PUNJAB NATIONAL BANK

42-53

2. REVIEW OF LITERATURE 54-55

3. NEED ,SCOPE AND OBJECTIVES OF THE STUDY 56-57

4. RESEARCH METHODOLOGY 58-61

5. DATA ANALSIS AND INTERPRETATION 61-87

6. FINDING AND CONCLUSION &LIMITATIONS OF STUDY

88-90

7. RECOMMENDATIONS,SUGGESTIONS AND

FUTURE SCOPE

91-91

8. BIBLIOGRAPHY / REFERENCES 92-92

9. ANNEXURE 93-95

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CHAPTER-I

INTRODUCTION OF ORGANISATION AND TOPIC

1.1 INTRODUCTION OF TOPIC

A bank is a financial institution licensed by a government. Its primary activities include

borrowing and lending money. Many other financial activities were allowed over time. For

example banks are important players in financial markets and offer financial services such as

investment funds. In some countries such as Germany, banks have historically owned major

stakes in industrial corporations while in other countries such as the United States banks are

prohibited from owning non-financial companies. In Japan, banks are usually the nexus of a

cross-shareholding entity known as the zaibatsu. In France, banc assurance is prevalent, as most

banks offer insurance services (and now real estate services) to their clients.

History of banking

The History of Banking begins with the first prototype banks of merchants of the ancient world,

which made grain loans to farmers and traders who carried goods between cities. This began

around 2000 BC in Assyria and Babylonia. Later, in ancient Greece and during the Roman

Empire, lenders based in temples made loans and added two important innovations: they

accepted deposits and changed money. Archaeology from this period in ancient China and India,

also shows evidence of money lending activity.

Banking, in the modern sense of the word, can be traced to medieval and early Renaissance Italy,

to the rich cities in the north such as Florence, Venice and Genoa. The Bardi and Peruzzi

families dominated banking in 14th century Florence, establishing branches in many other parts

of Europe. Perhaps the most famous Italian bank was the Medici bank, established by Giovanni

Medici in 1397. The development of banking spread from northern Italy through Europe and a

number of important innovations took place in Amsterdam during the Dutch Republic in the 16th

century and in London in the 17th century. During the 20th century, developments in

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http://en.wikipedia.org/wiki/Financial_history_of_the_Dutch_Republic

http://en.wikipedia.org/wiki/Medici

http://en.wikipedia.org/wiki/Europe

http://en.wikipedia.org/wiki/Peruzzi

http://en.wikipedia.org/wiki/Bardi_family

http://en.wikipedia.org/wiki/Genoa

http://en.wikipedia.org/wiki/Venice

http://en.wikipedia.org/wiki/Florence

http://en.wikipedia.org/wiki/History_of_India

http://en.wikipedia.org/wiki/Ancient_China

http://en.wikipedia.org/wiki/Roman_Empire

http://en.wikipedia.org/wiki/Roman_Empire

http://en.wikipedia.org/wiki/Ancient_Greece

http://en.wikipedia.org/wiki/Babylonia

http://en.wikipedia.org/wiki/Assyria

http://en.wikipedia.org/wiki/Loan

http://en.wikipedia.org/wiki/Merchant

http://en.wikipedia.org/wiki/Bank

Telecommunications and computing caused major changes to banks operations and let banks

dramatically increase in size and geographic spread. The Late-2000s financial crisis caused many

bank failures, including of some of the world's largest banks, and much debate about regulation.

The world of banking has assumed a new dimension at dawn of the 21st century with the advent

of tech banking, thereby lending the industry a stamp of universality. In general, banking may be

classified as retail and corporate banking. Retail banking, which is designed to meet the

requirement of individual customers and encourage their savings, includes payment of utility

bills, consumer loans, credit cards, checking account and the like. Corporate banking, on the

other hand, caters to the need of corporate customers like bills discounting, opening letters of

credit, managing cash, etc.

Metamorphic changes took place in the Indian financial system during the eighties and nineties

consequent upon deregulation and liberalization of economic policies of the government. India

began shaping up its economy and earmarked ambitious plan for economic growth.

Consequently, a sea change in money and capital markets took place. Application of marketing

concept in the banking sector was introduced to enhance the customer satisfaction the policy of

privatization of banking services aims at encouraging the competition in banking sector and

introduction of financial services. Consequently, services such as Demit, Internet banking,

Portfolio Management, Venture capital, etc, came into existence to cater to the needs of public.

An important agenda for every banker today is greater operational efficiency and customer

satisfaction. The mew watchword for the bank is pretty ambitious: customer delight.

The introduction to the marketing concept to banking sectors can be traced back to American

Banking Association Conference of 1958. Banks marketing can be defined as the part of

management activity, which seems to direct the flow of banking services profitability to the

customers. The marketing concept basically requires that there should be thorough understanding

of customer need and to learn about market it operates in. Further the market is segmented so as

to understand the requirement of the customer at a profit to the banks.

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http://en.wikipedia.org/wiki/Late-2000s_financial_crisis

DEFINITION OF BANK

The Oxford dictionary defines the Bank as

“An establishment for the custody of money, which it pays out, on a customer’sorder.”

According to Whitehead

“A Bank is defined as an institution which collects surplus funds from the public,

safeguards them, and makes them available to the true owner when required and also lends sums

be their true owners to those who are in need of funds and can provide security.”

Banking Company in India has been defined in the Banking Companies act 1949,

“One which transacts the business of banking which means the accepting, for the purpose

of lending or investment of the deposits of money from the public, repayable on demand, or

otherwise and withdraw able be cheque, draft, order or otherwise.”

The banking system is an integral subsystem of the financial system. It represents an important

channel of collecting small savings form the households and lending it to the corporate sector.

The Indian banking system has Reserve Bank of India (RBI) as the apex body for all matters

relating to the banking system. It is the central Bank of India. It is also known as the Banker to

All Other Banks.

EVOLUTION OF INDIAN BANKING

Ancient banking system of India constituted of indigenous bankers. They have been carrying on

their age-old banking operations in different parts of the country under different names. The

modern age of banking constitutes the fundamental basis of economic growth. The term Bank is

being used since long time but there is no clear conception regarding its beginning. According to

the viewpoint, in good old days. Italian money leaders were known as“Banchi” because they

kept a special type of table to transact their business.

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1.2 INDIAN BANKING SYSTEM

"The success of the economic reforms is therefore all to see and the driving force of these

reforms is the banking sector".

P. ChidamBaram

Banking system occupies an important place a nation's economy. A banking institution is

indispensable in a modern society. In plays a pivotal role in the economic development of

a country.

Thus, economic development of a country depends upon success of banking industry and

success of banking Industry is determined to a large extent by now well then needs of its

customers have been understood and satisfied.

. Reserve Bank of India

The Banking system is an integral sub-system of the financial system. It represents an important

channel of collecting small savings from the households and lending it to the corporate sector.

The Indian banking system has The Reserve Bank of India (RBI) as the apex body from all

matters relating to the banking system. It is the “Central Bank” of India and act as the banker to

all other banks.

Functions of RBI: • Currency issuing authority

• Banker to the government.

• Banker to other Bank.

• Framing of monetary policy.

• Exchange control.

• Custodian to foreign exchange and gold reserves.

• Development activities.

• Research and development in the banking sector.

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Reserve Bank of India

Commercial Banks Co-operative Banks Development Banks

Nationalized Private Short-term credit

Long-term credit

Agricultural Credit

Urban Credit

EXIM Industrial Agricultural

Organizational Structure of Banks in India:

In India banks are classified in various categories according to differ rent criteria.

The following charts indicate the banking structure:

1.3

CLASSIFICATION OF BANKS

1. On the basis of Ownership

2. According to Function

1. On the basis of Ownership

PUBLIC SECTOR BANKS

Nationalized banks or public banks dominate banking System in India. The nationalization of

Banks inIndia took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major

objective behindnationalization was to spread banking infrastructure in rural areas and make

available cheap finance toIndian farmers. Before 1969, State Bank of India (SBI) was the only

public sector bank in India. Despitethe entry of many new domestic and foreign private banks

since liberalization, public sector bankscontinue to dominate the commercial banking industry.

PRIVATE SECTOR BANKS

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Private sector banking in India received a flip in1994 when Reserve Bank of India encouraged

setting up of private banks as part of its policy ofliberalization of the Indian Banking Industry.

Housing Development Finance Corporation Limited(HDFC) was amongst the first to receive an

'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private

sector.Private Banks have played a major role in the development of Indian banking industry.

They have madebanking more efficient and customer friendly. In the process they have jolted

public sector banks out ofcomplacency and forced them to become more competitive.India has a

better banking system in place of other developing countries.

CO-OPERATIVE BANKS

These are those banks that are jointly run by a group of individuals. Each individual has an equal

share in these banks. Its shareholders manage the affairs of the bank.

2. According to Function

COMMERCIAL BANKS These are the banks that do banking business to earn profit. These banks make loans for short to

business and in the process create money. Credit creation is the main function of these banks.

FOREIGN BANKS These are those banks that are incorporated by foreign company. They have set up their branches

in India. These banks have their head offices in foreigncountries. Their principle function is to

make credit arrangement or the export and the import of the country and these banks deals in

foreign exchange.

INDUSTRIAL BANKS Industrial banks are those banks that offer long term and medium term loan to the industries and

also work for their development. These banks help industries in sale of their shares, debentures

and bonds. They give loan to the industries for the purchase of land and machinery.

AGRICULTURAL BANKS

Agricultural banks are those banks that give credit to agricultural sector of the economy.

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SAVING BANKS

The principle function of these banks is to collect small savings across the country and put them

to the productive use. In India department of post office functions a savings banks.

CENTRAL BANK Central Bank is the apex bank of the banking system of the country. It issues currency notes and

acts a banker's bank. Economic stability is the principle function of this bank. In short, it

regulates and controls the banking system of the country. RBI is the Central Bank of India.

1.4INTRODUCTION OF ORGANISATION

STATE BANK OF INDIA HISTORY

The evolution of State Bank of India can be traced back to the first decade of the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever joint-stock bank of the British India, established under the sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the modern banking scenario in India, until when they were amalgamated to form the Imperial Bank of India, on 27 January 1921.

An important turning point in the history of State Bank of India is the launch of the first Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in general and the rural sector of the country, in particular. Until the Plan, the commercial banks of the country, including the Imperial Bank of India, confined their services to the urban sector. Moreover, they were not equipped to respond to the growing needs of the economic revival taking shape in the rural areas of the country. Therefore, in order to serve the economy as a whole and rural sector in particular, the All India Rural Credit Survey Committee recommended the formation of a state-partnered and state-sponsored bank.

The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. Subsequently, an

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Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This resulted in making the State Bank of India more powerful, because as much as a quarter of the resources of the Indian banking system were controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried out by the 480 offices comprising branches, sub offices and three Local Head Offices, inherited from the Imperial Bank. Instead of serving as mere repositories of the community's savings and lending to creditworthy parties, the State Bank of India catered to the needs of the customers, by banking purposefully. The bank served the heterogeneous financial needs of the planned economic development.

BranchesThe corporate center of SBI is located in Mumbai. In order to cater to different functions, there are several other establishments in and outside Mumbai, apart from the corporate center. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices, located at major cities throughout India. It is recorded that SBI has about 10000 branches, well networked to cater to its customers throughout India.

ATM ServicesSBI provides easy access to money to its customers through more than 8500 ATMs in India. The Bank also facilitates the free transaction of money at the ATMs of State Bank Group, which includes the ATMs of State Bank of India as well as the Associate Banks – State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc. You may also transact money through SBI Commercial and International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card.

SubsidiariesThe State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries. Through the establishments, it offers various services including merchant banking services, fund management, factoring services, primary dealership in government securities, credit cards and insurance.

The eight banking subsidiaries are:

State Bank of Bikaner and Jaipur (SBBJ)

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State Bank of Hyderabad (SBH)

State Bank of India (SBI)

State Bank of Indore (SBIR)

State Bank of Mysore (SBM)

State Bank of Patiala (SBP)

State Bank of Saurashtra (SBS)

State Bank of Travancore (SBT)

Contact

State Bank Of IndiaCorporate Centre Madam Cama RoadMumbai 400 021 India

Website: www.statebankofindia.com

SBI's Shareholding Pattern

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http://www.statebankofindia.com/

Description Percent of Share (%)

Promoters 61.58

Individuals 6.06

Institutions 17.12

FII 8.70

Govt. 0.02

Others 6.52

The latest audited financial position ofthe State Bank of India as on 31st March, 2015 is as

follows:-

Share money 746.57crores

Reserve/Other funds 127,691.65crores

Deposits 1576793.2crores

Advances 1300026crores

Net Profit 128438.22crores

PRODUCTS

DEPOSIT PRODUCTS

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Saving Product Interest Type Payable Frequency

Saving Bank Account Compounded Half Yearly

Fixed Deposit Simple Monthly/Quarterly/Half Yearly/On Maturity

Term Deposit Compounded Monthly/Quarterly/Half Yearly/On Maturity

Recurring Deposit Compounded Monthly

In case of Fixed Deposit Schemes, the customer has the option to withdraw the Interest Amount

as per the agreed frequency. In case of Term Deposit & Recurring Deposit Schemes the Total

Matured Amount will be payable on maturity only with a option to discontinue the Deposit

subject to penal clauses.

Loan Products

Co-Op. Societies Individuals

Agriculture Agriculture

Non-Farm Sector Non-Farm Sector

Personal Vehicle Personal Vehicle

Weavers/Industrial/Housing Housing

Cash Credits Cash Credits

Financial position of the bank during the last five

years

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Balance Sheet of State Bank of India from March 2015 to

March 2011

MAR '15 MAR '14 MAR '13 MAR '12 MAR '11

12 mths 12 mths 12 mths 12 mths 12 mths

CAPITAL AND LIABILITIES:TOTAL SHARE CAPITAL 746.57 746.57 684.03 671.04 635.00EQUITY SHARE CAPITAL 746.57 746.57 684.03 671.04 635.00SHARE APPLICATION MONEY 0.00 0.00 0.00 0.00 0.00PREFERENCE SHARE CAPITAL 0.00 0.00 0.00 0.00 0.00RESERVES 127,691.65 117,535.68 98,199.65 83,280.16 64,351.04NET WORTH 128,438.22 118,282.25 98,883.68 83,951.20 64,986.04DEPOSITS 1,576,793.2

41,394,408.51 1,202,739.5

71,043,647.36 933,932.81

BORROWINGS 205,150.29 183,130.88 169,182.71 127,005.57 119,568.96TOTAL DEBT 1,781,943.5

31,577,539.39 1,371,922.2

81,170,652.93 1,053,501.7

7OTHER LIABILITIES & PROVISIONS 137,698.05 96,412.96 95,455.07 80,915.09 105,248.39TOTAL LIABILITIES 2,048,079.8

01,792,234.60 1,566,261.0

31,335,519.22 1,223,736.2

0Mar '15 Mar '14 Mar '13 Mar '12 Mar '11


ASSETSCASH & BALANCES WITH RBI 115,883.84 84,955.66 65,830.41 54,075.94 94,395.50BALANCE WITH BANKS, MONEY AT CALL

58,977.46 47,593.97 48,989.75 43,087.23 28,478.65

ADVANCES 1,300,026.39

1,209,828.72 1,045,616.55

867,578.89 756,719.45

INVESTMENTS 495,027.40 398,308.19 350,927.27 312,197.61 295,600.57GROSS BLOCK 9,329.16 8,002.16 6,595.71 5,133.87 4,431.96REVALUATION RESERVES 0.00 0.00 0.00 0.00 0.00ACCUMULATED DEPRECIATION 0.00 0.00 0.00 0.00 0.00NET BLOCK 9,329.16 8,002.16 6,595.71 5,133.87 4,431.96CAPITAL WORK IN PROGRESS 0.00 0.00 409.31 332.68 332.23OTHER ASSETS 68,835.55 43,545.90 47,892.03 53,113.02 43,777.85TOTAL ASSETS 2,048,079.8

01,792,234.60 1,566,261.0

31,335,519.24 1,223,736.2

1

CONTINGENT LIABILITIES 1,093,422.51

1,091,358.37 993,018.45 899,565.18 790,389.59

BILLS FOR COLLECTION 0.00 0.00 0.00 0.00 0.00BOOK VALUE (RS) 172.04 1,584.34 1,445.60 1,251.05 1,023.40

Balance Sheet of State Bank of India ------------------- in Rs. Cr. -------------------

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LOAN

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial

assets over time, between the lender and the borrower. 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.

TYPES OF LOANS

1. Secured

A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as

collateral for the loan. A subsidized loan is a loan that will not gain interest before you begin to

pay it. It is known to be used at multiple colleges. An unsubsidized is a loan that gains interest

the day of disbursement.

A mortgage loan is a very common type of debt instrument, used by many individuals to

purchase housing. In this arrangement, the money is used to purchase the property. The financial

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http://en.wikipedia.org/wiki/House

http://en.wikipedia.org/wiki/Mortgage_loan

http://en.wikipedia.org/w/index.php?title=Subsidized_loan&action=edit&redlink=1

http://en.wikipedia.org/wiki/Collateral_(finance)

http://en.wikipedia.org/wiki/Pledge_(law)

http://en.wikipedia.org/wiki/Secured_loan

http://en.wikipedia.org/wiki/Bond_(finance)

http://en.wikipedia.org/wiki/Debt

http://en.wikipedia.org/wiki/Financial_institution

http://en.wikipedia.org/wiki/Loan_covenant

http://en.wikipedia.org/wiki/Contract


http://en.wikipedia.org/wiki/Interest

http://en.wikipedia.org/wiki/Annuity_(finance_theory)

http://en.wikipedia.org/wiki/Money

http://en.wiktionary.org/wiki/borrower

http://en.wiktionary.org/wiki/lender

http://en.wikipedia.org/wiki/Asset


institution, however, is given security — a lien on the title to the house — until the mortgage is

paid off in full. If the borrower defaults on the loan, the bank would have the legal right to

repossess the house and sell it, to recover sums owing to it.

In some instances, a loan taken out to purchase a new or used car may be secured by the car; in

much the same way as a mortgage is secured by housing. The duration of the loan period is

considerably shorter — often corresponding to the useful life of the car. There are two types of

auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a

consumer. An indirect auto loan is where a car dealership acts as an intermediary between the

bank or financial institution and the consumer. A type of loan especially used in limited

partnership agreements is the recourse note. A stock hedge loan is a special type of securities

lending whereby the stock of a borrower is hedged by the lender against loss, using options or

other hedging strategies to reduce lender risk.

A pre-settlement loan is a non-recourse debt, this is when a monetary loan is given based on the

merit and awardable amount in a lawsuit case. Only certain types of lawsuit cases are eligible for

a pre-settlement loan. This is considered a secured non-recourse debt because if the case reaches

a verdict in favor of the defendant the loan is forgiven.

2. Unsecured

Unsecured loans are monetary loans that are not secured against the borrower's assets. These

may be available from financial institutions under many different guises or marketing packages:

credit card debt

personal loans

bank overdrafts

credit facilities or lines of credit

corporate bonds (may be secured or unsecured)

The interest rates applicable to these different forms may vary depending on the lender and the

borrower. These may or may not be regulated by law. In the United Kingdom, when applied to

individuals, these may come under the Consumer Credit Act 1974.

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http://en.wikipedia.org/wiki/Consumer_Credit_Act_1974

http://en.wikipedia.org/wiki/Interest_rate

http://en.wikipedia.org/wiki/Corporate_bond

http://en.wikipedia.org/wiki/Credit_card

http://en.wikipedia.org/wiki/Nonrecourse_debt

http://en.wikipedia.org/wiki/Hedge_(finance)

http://en.wikipedia.org/wiki/Securities_lending

http://en.wikipedia.org/wiki/Securities_lending

http://en.wikipedia.org/wiki/Default_(finance)

http://en.wikipedia.org/wiki/Lien

3. Demand

Demand loans are short term loans (typically no more than 180 days) that are atypical in that

they do not have fixed dates for repayment and carry a floating interest rate which varies

according to the prime rate. They can be "called" for repayment by the lending institution at any

time. Demand loans may be unsecured or secured.

MOST IMPORTANT TERMS & CONDITIONS

1. PURPOSE: Personal Loan is granted for marriage/medical treatment/ education/ foreign travel or any other general purpose except for any speculative activities.

2. ELIGIBILITY: Salaried employees, pensioners of central/state government/armed forces, self employed businessmen and professionals with a regular source of income are eligible to avail Personal Loan.

3. RATE OF INTEREST: Floating Rate of Interest: (For all Loans except Loans against Bank’s own Time Deposit) Interest on the loan will be charged at prevailing floating rate of interest on a daily reducing balance at monthly rests. The rate of interest is subject to revision from time to time due to (i) changes in Base Rate or (ii) revision even without change in Base Rate and the Bank has the option to reduce or increase the EMI or extend the repayment period or both consequent upon revision in interest rate.

Fixed Rate of Interest:- Only for Loan against Bank’s own Time Deposit

Calculation of interest:- Interest on the amount of the loan will be applied at the prevailing rate per annum on daily reducing balance with monthly rests.

4. INTIMATION OF CHANGE IN INTEREST RATE: The borrower shall be deemed to have notice of changes in the rate of interest whenever there are changes in Base Rate or increase in interest rates where there is no change in Base Rate are either displayed on the Notice Board of the Branch or published in news papers or made through entries of the interest rate charged in the passbook/statement of account furnished to the borrower and the borrower is liable to pay such revised rate of interest.

5. MODE OF REPAYMENT: Check-off facility or Post Dated Cheques for the Repayment period given or SI from the borrower’s salary/ pension a/c with our Bank. In case of Rent Plus the lessee(s) can pay the monthly rent to the Bank directly if the agreement so specifies.

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6. MARGIN: Product Margin Loan against Mortgage of Immovable Property 40% Rent Plus 40% Gold Loan 30% Loan against Shares/ Debentures 50% Loan against units of MF (Equity) 50% Loan against TDR/ STDR 10% Loan against NSC/ KVP/ RBI Relief Bonds 40% Loan against LIC Policies 5% SBI GETS SDL/ LDL 50% SDFS SDL / LDL 30% / 50% SBI Career Loan As per Security Offered Education Plus 10% Others Nil

7. PROCESSING FEES*: Product Processing Fee Xpress Credit 1% of the Loan Amount SBI Saral 2% - 3% of the Loan Amount SBI Career Loan 0.5% of the Loan Amount Loan for ESOPs Rs 2000 per application Equity Plus Rs 2000 per application Festival Loan 1% of the Loan amount Loan against Mortgage of Immovable Property 2% of the Loan amount ; Max Rs 50000 Rent Plus 2% of the Loan amount; Max Rs 100000 Gold Loan For Loan up to Rs 25000: Rs 500 per application For Loan above Rs 25000: 1% of the loan amount or Rs 1000 whichever is higher Loan against units of MF (Equity) 1% of the Loan amount Loan for application to IPOs 1st Loan: Rs 500 ; 2nd & 3rd Loan : Rs 100; After 3 Loans: Nil Advance against RBI Relief Bonds 1% of the Loan Amount Others Nil *Plus applicable Service Tax

Bounced cheque/ECS or SI dishonours:- A penalty of Rs 250/- will be charged for every bounced cheque/ECS or SI dishonours. The rate may vary from time to time. In the event of bouncing of cheque, legal action under section 138 of the Negotiable Instrument Act, 1881 will be initiated.

8. REPAYMENT: The loan is to be repaid in Equated Monthly Instalments over the tenure of the loan or in Lump sum at the end of the tenure depending on the product. The repayment instalment commences from a date specified in the sanction letter. The liability to the bank will be extinguished only when the outstanding in the loan account becomes Nil, on payment of residual amount, if any.

9. PRE-CLOSURE CHARGES: Loans on Fixed and Floating rate of interest: No pre-payment/ Pre-closure penalty will be levied except for Rent Plus in which 1% of the loan amount prepaid will be charged as prepayment penalty.

10. OTHER FEE/CHARGES: Particulars Amount (Rs) Collected for payment to empanelled Advocate for Legal opinion, Search Report and Valuation Fee As per Actual Any Other Fee, if any As per Actual

11. DEFAULT: In the event of default i.e. if the amount due is not paid by due date, the customer will be sent reminders from time to time for payment of any outstanding on his loan account, by post, fax, telephone, email, SMS messaging and/or through third parties appointed for collection purpose to remind, follow-up and collect dues. Any third party so appointed, shall adhere to the Indian Banks Association’s (IBA) code of conduct on debt collection.

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12. SECURITY: As per the Scheme.

13. INSURANCE: As per the Scheme.

13. PENAL INTEREST: Penal Interest will not be charged for loans up to Rs 25000. For Loans above Rs.25000/- , if the irregularity exceeds EMI or Instalment amount, for a period of one month ,then penal interest would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. If part instalment or part EMI remains overdue, then penal interest should not be levied.

14. TIMELINE FOR DISPOSAL OF LOAN APPLICATIONS RACPC RCPC Sourced by MRT Sourced by BC/BF/Branch Rent Plus 6 days 7 days 9 days Mortgage Loan 6 days 7 days 9 days Personal Loan 3 days 2 days 3 days

15. CUSTOMER SERVICE For any service related issue, customer can get in touch with SBI: • Calling Customer Help Line Numbers • Contact Customer Grievance Cell at our Local Head Offices • Write to Grievance Cell at our Local Head Offices (Details on Help line Numbers and Grievance Cell available on www.sbi.co.in)

In case a customer is not satisfied with the handling of grievance by the Local Head Office, a communication may be sent (enclosing the message sent earlier to Local Head Office) to the -

Deputy General Manager (Customer Service), Customer Service Dept, State Bank of India; State Bank Bhawan, 4th floor; Madame Cama Road, Mumbai-400 021, Telephone No. (022) 22029456, 22029451 22740432, 22740431, 22740433 Fax no. (022) 22742431. E-mail address - [email protected].

DISCLOSURE State Bank of India is authorized to disclose from time to time any information relating to the loan to any credit bureau (Existing or Future) approved by Government of India and Reserve Bank of India without any notice to the borrower. State Bank of India is also authorized to make inquiries with the Credit Information Bureau of India (CIBIL) and get the applicants Credit Information Report

.

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SBI Bank Loan Schemes

Loan against Shares & Debentures

This type of loan scheme can be availed against the shares, bonds, debenture or any other

government security policies you are currently holding. A maximum loan of 20, 00,000/- INR

can be availed from the SBI branches. The EMI is for a period of thirty months.

However, only fifty selected city branches have this facility to avail. The cities where this facility

can be availed are Ahmedabad, Baroda, Surat, Gandhinagar, Rajkot, Bangalore, Mysore, Bhopal,

Indore, Jabalpur, Raipur, Gwalior, Bhubaneswar, Cuttack, Sambalpur, Chandigarh, Jalandhar,

Ludhiana, Amritsar, Chennai, Coimbatore, Tirupur, Guwahati, Shillong, Hyderabad,

Visakhapatnam, Karimnagar, Tirupati, Kolkata, Siliguri, Asansol (Bardhhaman), Lucknow,

Varanasi, Kanpur, Allahabad, Mumbai, Pune, Panjim, Aurangabad, Nagpur, New Delhi, Jaipur,

Agra, Udaipur, Patna, Ranchi, Bhagalpur, Thiruvananthapuram, & Cochin.

HOME LOANS - INTEREST RATES With effect from 08.06.2015(Base Rate: 9.70%)

Borrowers' category

Home Loan interest rate, irrespective of loan limit

Maxgain above Rs. 1 crore

Women At BR i.e. 9.70% p.a. 25 bps above the BR i.e. 9.95% p.a.

Others 5 bps above the Base Rate i.e. 9.75% p.a.

30 bps above the Base Rate i.e. 10.00% p.a.

The woman should be the sole applicant or first co-applicant of Home Loan and also The property proposed to be financed should be either in the sole name of the woman borrower

or she should be the first owner in case of joint ownership

DOMESTIC TERM DEPOSITSThe revised interest rates for Retail Domestic Term Deposits ‘Below Rupees One Crore effective from the 08.06.2015 would be as under:(All figures in % per annum)

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Tenors Existing for Public

Revised For Public w.e.f. 08.06.2015

Existing for Senior Citizens

Revised for Senior Citizens w.e.f. 08.06.2015

7 days to 45 days 6.00 5.50 6.25 5.75

46 days to 179 days 7.00 6.75 7.25 7.00

180 days to 210 days 7.25 7.25 7.50 7.50

211 days to less than 1 year 7.50 7.50 7.75 7.75

1 year to 455 days 8.00 8.00 8.25 8.25

456 days to less than 2 years

8.25 8.25 8.50 8.50

2 years to less than 5 years 8.25 8.25 8.50 8.50

5 years and up to 10 years 8.00 8.00 8.25 8.25

The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable rate. The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will be 0.25% above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident Indian Senior Citizen Pensioners will get both the benefits of Staff (1%) and resident Indian Senior Citizens (0.25%).The proposed rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits. The interest rates on "SBI Tax Savings Scheme 2006(SBITSS)" schemes and NRO deposits shall be aligned as per the proposed rates for domestic retail term deposits. However, NRO deposits of Staff are not eligible for additional 1% interest otherwise applicable to staff domestic retail deposits, these rates of interest shall also be made applicable to domestic term deposits from Cooperative Banks.Premature Withdrawal- The instructions in respect of premature withdrawals of Retail Term Deposits will be same as under :

Premature penalty for Retail Term Deposits up to Rs 5.00 lacs will be ‘NIL' provided the deposits have remained with the bank for at least 7 days.

For term deposit above Rs 5.00 lacs but less than Rs 1 crore ,the prepayment penalty will be 1% for all tenors..

There is no discretion for reduction/waiver of penalty for premature withdrawal of term deposits.

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No premature penalty will be levied on staff and SBI pensioners Deposits.

The revised interest rates on 'Domestic Term Deposits' of ‘Rs One Crore & above' with effect from 26.06.2015 would be as under:

Tenors Existing forPublic

Revised w.e.f.26.06.2015 for Public

Existing forSenior Citizens

Revised w.e.f.26.06.2015 for Senior Citizens

7 days to 45 days 5.50% 5.50% 5.75% 5.75%

46 days to 179 days 6.75% 6.75% 7.00% 7.00%

180 days to 210 days 7.25% 7.25% 7.50% 7.50%

211 days to less than 1 year

7.50% 7.25% 7.75% 7.50%

1 year to 455 days 8.00% 7.50% 8.25% 7.75%


8.25% 7.50% 8.50% 7.75%

2 years to less than 5 years

8.25% 7.50% 8.50% 7.75%

5 years to 10 years 8.00% 7.50% 8.25% 7.75%

Premature payment of Bulk term deposits:

Premature penalty for Bulk Term Deposits for all tenors will be 1%. It will be applicable for all new deposits including renewals. There is no discretion for reduction/waiver of penalty for premature withdrawal of term deposits.The revised rates of interest shall be made applicable to fresh deposits and renewals of maturing deposits. The interest rates on NRO term deposits shall be aligned as per the rates for domestic term deposits. These rates of interest shall also be made applicable to domestic term deposits from Cooperative Banks. However, NRO deposits of Staff are not eligible for additional 1% interest otherwise applicable to domestic term deposits.

REINVESTMENT PLAN(Applicable to Domestic / NRO Deposits)

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STANDARD TABLE FOR MATURITY VALUES OF A SPECIAL TERM DEPOSITof Rs. 100/- w.e.f.

8th June 2015Period in Months

Maturity value as per IBA MASTER CHART (4 decimal)

PUBLIC/NRO STAFF

6 103.6579 104.16759 105.7311 106.511412 108.2432 109.308324 117.7415 120.068636 127.7599 131.566248 138.6306 144.164860 148.5947 156.050972 160.8437 170.576784 174.1024 186.454596 188.4541 203.8103108 203.9887 222.7816120 220.8040 243.5189

SAVINGS BANK DEPOSITSRATE OF INTEREST : 4.00% p.a. (w.e.f. 03.05.2011)

NRE SAVINGS BANK A/CInterest rate for SAVINGS BANK NRE deposits wef 03.05.2011

Rate (% p.a.)Interest rate for NRE SB deposit 4.0% P.A.

NRE FIXED DEPOSITS

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With effect from 26th June 2015 (p.a.)*Tenor Below Rs. 1 Crore Rs 1 Crore & above1 year to 455 days 8.00% 7.50%456 days to less than 5year

8.25% 7.50%

5 years to less than 10 years

8.00% 7.50%

Premature withdrawal No interest is payable if the deposit is withdrawn before one year.No penalty will be levied, for deposits opened or renewed from 10th April 2015 and withdrawn after completion of one year and deposit amount is up to Rs. 5.00 lacs.In all other cases, on pre-mature withdrawal of the deposit (after completion of 1 year), interest will be paid at applicable rate for the period the deposit has actually remained with the Bank or contracted rate less applicable penalty (as per table mentioned below), whichever is lower.NRE term deposits opened or renewed

Penalty

Before 1st January, 2012

1.00%

From 1st January, 2012 – 09th April 2015

0.50%

From 10th April 2015

1.00%

No interest is payable if the deposit is withdrawn before one year.On pre-mature withdrawal of the deposit (after completion of 1 year), interest will be paid at applicable rate for the period the deposit has actually remained with the Bank or contracted rate less applicable penalty (as per table mentioned below), whichever is lower.NRE term deposits opened or renewed

Penalty

Before 1st January, 2012

1.00%

From 1st January, 2012 – 09th April 2015

0.50%


1.00%

*Rates are subject to change, without prior notice.

NRO SAVINGS BANK A/CInterest rate for SAVINGS BANK NRO deposits

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Rate (% p.a.)

Interest rate for NRO SB deposit 4.0% P.A. (w.e.f 03.05.2011)

NRO FIXED DEPOSITS

With effect from 26th June 2015 (p.a.)*Tenor Below Rs. 1 Crore Rs 1 Crore & above7 days to 45 days 5.50% 5.50%46 days to 60 days 6.75% 6.75%61 days to 179 days 6.75% 6.75%180 days to 210 days 7.25% 7.25%211 days to less than 1 year

7.50% 7.25%

1 year to 455 days 8.00% 7.50%456 days to less than 5 years

8.25% 7.50%

5 years and up to 10 years

8.00% 7.50%

Premature withdrawal No interest is payable if the deposit is withdrawn before 7 days.For single deposit of amount up to Rs. 5.00 lacs, there shall be no penalty for premature, provided it has remained with the bank for at least 7 daysIn all other cases, on pre-mature withdrawal of the deposit (after completion of 7 days), interest will be paid at applicable rate for the period the deposit has actually remained with the Bank or contracted rate less applicable penalty (as per table mentioned below), whichever is lower.NRO term deposits opened

Penalty

No interest is payable if the deposit is withdrawn before 7 days.On pre-mature withdrawal of the deposit (after completion of 7 days), interest will be paid at applicable rate for the period the deposit has actually remained with the Bank or contracted rate less applicable penalty (as per table mentioned below), whichever is lower.NRO term deposits opened or renewed

Penalty

Before 10th April 2015

0.50%

From 10th April 1.00%

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or renewedBefore 10th April 2015

0.50%


1.00%

2015

RESIDENT FOREIGN CURRENCY

RESIDENT FOREIGN CURRENCY ACCOUNT (RFC ) (% P.A.) w.e.f 01st July 2015

PERIOD USD GBP EURO

1 year to less than 2 years 1.26 1.49 0.832 years to less than 3 years 1.90 2.13 1.123 years 2.26 2.39 1.24

Premature withdrawals of RFC Account:

No interest is payable, if the deposit is withdrawn before one year. If the deposit is withdrawn after completion of one year, the interest paid shall

be 1.00 % below the rate applicable for the period deposit has remained with the Bank or 1.00 % below the contracted rate, whichever is lower.

LOANS AGAINST THE SECURITY OF NRE/NRO/FCNR (B) DEPOSITS ( DL or O.D.)

Loan against NRO and NRE Fixed Deposits 0.50% over the rate paid on the relative fixed / term deposit offered as security

Loan against security of FCNR (B) Deposits

2.25% over prevalent Bank's Base Rate* (12.10 % p.a. currently)

*Bank's Base Rate is 9.85 % p.a. (with effect from 10th April 2015) and subject to change.

EDUCATION LOAN SCHEME

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Base Rate 9.70% w.e.f. 08.06.2015

EDUCATION LOANS1) SBI STUDENT LOAN SCHEME

Loan Amount Rate of Interest*

For loans upto Rs.4 lacs 3.65% above Base Rate, currently 13.35% p.a.

Above Rs.4 lacs and upto Rs.7.50 lacs 3.90% above Base Rate, currently 13.60% p.a.

Above Rs.7.50 lacs 1.90% above Base Rate, currently 11.60% p.a.

*(0.50% concession in interest for girl students) 1% concession for full tenure of the loan, if interest is serviced promptly as and

when applied during the moratorium period, including course duration#)IT exemption under Section 80(E) in respect of interest paid in all Education Loans

2) SBI SCHOLAR LOAN SCHEME

Education Loans for Students securing admission in IITs, IIMs, NITs, AIIMS and other reputed institutions.Rate of Interest:

List

ROI

List AA 25 bps above Base Rate i.e., 9.95% p.a. at present (Upto Rs. 30 Lacs without collateral)

List A 25 bps above Base Rate i.e., 9.95% p.a. at present (Upto Rs. 20 Lacs without collateral, upto Rs. 30 with collateral)

List B 50 bps above Base Rate i.e., 10.20% p.a. at present (Upto Rs. 20 Lacs without collateral)Further concessions:

25 bps – if collateral security >= the loan amount25 bps – work experience of more than 2 years

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(effective rate of interest with both concessions not to be lower than 25 bps above Base Rate presently, 9.95% p.a.)

List C 175 bps above Base rate i.e. 11.45% p.a. (Upto Rs. 7.5 Lacs without collateral, upto Rs. 30 with collateral)1% concession for full tenure of the loan, if interest is serviced promptly as and when applied during the moratorium period, including course duration#

PERSONAL LOAN SCHEMES

Base Rate 9.70% w.e.f. 08.06.2015Personal Loans

Scheme Name Check Off Rate of Interest*Xpress Credit Full Check-off (Category I) 315 - 365 bps above

Base Rate i.e., 12.85% - 13.35% p.a. currently

Partial Check-off (Category II)

415 - 465 bps above Base Rate i.e., 13.85% - 14.35% p.a. currently

No Check-off (Category III) 515 - 565 bps above Base Rate i.e., 14.85% - 15.35% p.a. currently

SBI Pension Loans 3.65% above Base Rate, currently 13.35% p.a.

Jai Jawan Pension Loan 4.75% above Base Rate, currently 14.45% p.a.

SBI Saral 8.50% above Base Rate floating, currently 18.20% p.a.

Festival Loan Scheme 6.75% above Base Rate, currently 16.45% p.a.

Clean Overdraft 8.25% above Base Rate, currently 17.95% p.a.

LOANS AGAINST SECURITIES

Base Rate 09.70% w.e.f. 08.06.2015Loan against Bank Time Deposit

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Tenure Rate of Interest*

Loan against Bank Time Deposits 0.50% over the rate paid on Relative time deposit.

Loan against NRO Fixed Deposit 0.50% over the rate paid on Relative time deposit.

Loan against NRE Fixed Deposit 0.50% over the rate paid on Relative time deposit.

Loan against Floating Rate Term Deposit 1.50% over the rate paid on Relative time deposit

Loan against security of FCNR(B) Deposit 225 bps above Base Rate i.e., 11.95% p.a.

Bhagya Rekha Loan 2.00% above Base Rate, currently 11.70% p.a.

Loans against NSCs/KVPs/RBI Relief Bonds/Surrender Value of SBI Life /LIC/SBI Magnums,etc.

Tenure Rate of Interest*

Upto 3 years 4.50% above Base Rate, currently 14.20% p.a.

More than 3 years and below 6 years

4.50% above Base Rate, currently 14.20% p.a.

Loans against Shares / Debentures / Bonds

Scheme Rate of Interest*

Equity Plus Scheme 6.50% above Base Rate, currently 16.20% p.a.

Loans against Shares & Debentures 6.50% above Base Rate, currently 16.20% p.a.

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Loan to employees to subscribe for ESOPs 6.50% above Base Rate, currently 16.20% p.a.

Loan for subscription to IPOs


For employees qualifying under Xpress Credit 6.50% above Base Rate, currently 16.20% p.a.

For Others 7.00% above Base Rate, currently 16.70% p.a.

Loan against units of SBI Debt Fund Series


Short Duration Loan 4.50% above Base Rate, currently 14.20% p.a.Long Duration Loan 4.50% above Base Rate, currently 14.20% p.a.

SBI GOLD LOAN SCHEMESBI Gold Loans

Base Rate 09.70% w.e.f. 08.06.2015

Type of facility Rate of Interest*

Demand Loan 2.65% above Base Rate Floating, currently 12.35% p.a.

LOAN AGAINST PROPERTY

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Base Rate 09.70% w.e.f. 08.06.2015Loan against Mortgage of Immovable Property

Size of Credit Limit (Term Loan)

Rate of Interest*

For Loans upto Rs 1 Cr 2.90% above Base Rate, currently 12.60% p.a.For Loans above Rs 1 Cr 3.15% above Base Rate, currently 12.85% p.a.

Rent Plus Scheme

Loan Amount Rate of Interest*

For Loans upto Rs 7.50 Cr in Metro Center and Rs 5.00 Cr in Non- Metro Center

3.25% above Base Rate, currently 12.95% p.a.

In all other cases (In case of deviation) 3.40% above Base Rate, currently 13.10% p.a.

SBI CAREER LOAN

Base Rate 09.70% w.e.f. 08.06.2015SBI Career Loan

Scheme Type of Security Rate of Interest*

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SBI Career Loan* Land/Building 4.50% above Base Rate, currently 14.20% p.a.

Bank's TDRs/STDRs 1.00% above the rate of interest payable on deposits

Govt. Securities/Public Sector Bonds/NSCs/ KVPs/RBI Relief Bonds, LIC Policy

4.25% above Base Rate , currently 13.95% p.a.

SBI Education Plus

NA 4.50% above Base Rate, currently 14.20% p.a.

(*In case interest is paid during the course period a rebate of 0.50% will be admissible, only during the moratorium period)

ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICEPROCESSING FEES

Personal Loans

Scheme Name Processing FeesClean Overdraft NILSBI Saral 2.02% - 3.03% of the Loan AmountSBI Pension Loan 0.51% of the Loan amount (Minimum Rs.

250)Jai Jawan Pension Loan NIL

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Festival Loan Scheme 1.01% of the Loan amountXpress Credit 1.01% of the Loan Amount

Auto Loan

Scheme Name Processing FeesSBI CAR LOAN SCHEME 0.52% of loan amount

Min: Rs. 1035.00Max: Rs. 10350.00

SBI Combo Loan Scheme 0.52% of loan amountMin: Rs. 1035.00 Max: Rs. 10350.00

NRI Car Loan 0.52% of loan amountMin: Rs. 1035.00Max: Rs. 10350.00

Used Car Loans 0.52% of loan amountMin: Rs. 517.00Max: Rs. 10350.00

Certified Pre-owned car loan 0.52% of loan amountMin: Rs. 517.00Max: Rs. 10350.00

SBI Loyalty Car Loan Scheme 0.25% of loan amountMin: Rs. 507.00Max: Rs. 5073.00

SBI NANO YOUTH CAR LOAN SCHEME 0.52% of loan amountMin: Rs. 1015.00

2-WHEELER SCHEME 1.24% of loan amountMin: Rs. 260.00Max: Rs. 517.00

SUPER BIKE LOAN SCHEME 2.03% of loan amountMin: Rs. 6088.00Max: Rs. 20292.00

Loans against Securities

Scheme Name Processing FeesLoans against NSCs/KVPs /Surrender Value of SBI Life /LIC

NIL

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Advance against RBI Relief Bonds 1.01% of the Loan Amount

Equity Plus Scheme Rs 2040 per application

Loan against Shares & Debentures NILLoan to employees to subscribe for ESOPs Rs 2040 per

applicationLoan for subscription to IPOs 1st Loan: Rs 511

;2nd & 3rd Loan : Rs 101;After 3 Loans: NIL

Loan against units of SBI Debt Fund Series After 3 Loans: Nil

Loan against units of Mutual Fund (Equity) 1.01% of the Loan amount

Bhagya Rekha Loan NIL

Gold Loans

Parameters Processing Fees

(i) For BIS Hallmarked Jewellery/ Ornaments and specially minted Gold Coins sold by Banks :

NIL

(ii) For Non Hallmarked Jewellery/ Ornaments (a)Up to Rs 25000: Rs 256 per application(b)Above Rs 25000: 0.51% of the Loan amount or Rs 511 whichever is higher.

*Valid only during the Campaign Period from 01.04.2015 to 30.06.2015

Loan against Property

Scheme Name Processing Fees

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Loan against Mortgage of Immovable Property

1.01% of the Loan amount ; Max Rs 50933

Rent Plus 2.02% of the Loan amount; Max Rs 101865

Career Loan

Scheme Name Processing FeesSBI Career Loan 0.51% of the Loan AmountEducation Plus NIL

PENAL INTEREST & OTHER CHARGES

Penal Interest will not be charged for loans up to Rs 25000. For Loans above Rs.25000/- , if the irregularity exceeds EMI or Installment amount, for a period of one month ,then penal interest would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. If part installment or part EMI remains overdue, then penal interest should not be levied. Other Charges (if any) will be as per actual.

AGRICULTURAL SEGMENT

AGRICULTURAL SEGMENT - INTEREST RATE STRUCTURE

(A) BASE RATE IMPLEMENTATION FOR RATED AND UNRATED BORROWER (Effective from 08.06.2015)BASE RATE :9.70% p.a

(B) SBAR (Effective from 08.06.2015):14.45 % p.a

1. UNRATED BORROWERS WITH AGGREGATE CREDITLIMITS BELOWRs.25 LACS

(A) WORKING CAPITAL AND LOANS REPAYABLE UPTO 3 YEARS

Sl.No

LIMIT SPREAD (BASE RATE + ) Effective rate

1. Upto Rs.3.00 lacs ** 9.70 +2.00= 11.70 11.702. Rs.3 lacs – upto Rs. 5 lacs 9.70 +3.00= 12.70 12.703. Rs.5 lacs- < Rs.25 lacs 9.70+4.00= 13.70 13.70

| 39

** Short term crop loans up to Rs.3.00 lacs will be charged 7% p.a (fixed) as per Government of India (GoI) directives. It is subject to GoI providing 2%p.a interest subvention to Bank on such advances. Otherwise, as per Bank's norms..TERM LOANS (Investment loans)(REPAYMENT MORE THAN 3 YEARS)

Effective Interest Rates % p.a

Sl.No

LIMIT REPAYMENT

More than 3 years to Less than 5 years

More than 5 years

1. Upto Rs.3.00 lacs ** 12.20 12.452. Rs.3 lacs – upto Rs. 5

lacs13.20 13.45

3. Rs.5 lacs- < Rs.25 lacs 14.20 14.452. RATED BORROWERS WITH AGGREGATE CREDIT LIMITS BETWEEN RS 25 LACS & UPTO RS100 CR

Effective Interest Rates % p.a

Sl.No

Rating Working capital & loans upto 3 years

REPAYMENT

Term Loans

More than 3 years- Less than 5 years

More than 5 years

1. SB 1 & SB 2 11.95 12.45 12.702. SB3 to SB 5 12.45 12.95 13.203. SB6 & SB7 12.70 13.20 13.454. SB8 & SB 9 13.20 13.70 13.955. SB 10 13.70 14.20 14.456. SB 11 to SB15 16.20 16.70 16.95

3. RATE OF INTEREST APPLICABLE FOR CASH CREDIT (CROP LOANS/ PRODUCTION LOANS)& TERMLOAN (INVESTMENT CREDIT)(Effective from 08.06.2015)

DIRECT AGRIAND INDIRECT AGRI ADVANCES(SBAR 14.45% p.a. W.E.F FROM 08.06.2015)

Size of credit limit CASH CREDIT / DEMAN

TERM LOAN / DEMAND LOAN

| 40

D LOAN

Repayable on demand

Repayable in 1-3 years

Repayable in 3-5 years

Repayable in 5 years and above

Upto Rs.50,000 11.70 % 12.70% 13.20% 13.45%Over Rs.50,000/- upto Rs.2 lacs 12.70% 13.70% 14.20% 14.45%Over Rs.2 lacsupto Rs.3 lacs 13.45% 14.45% 14.95% 15.20%Over Rs.3 lacsupto Rs.5 lacs 14.45%Over Rs.5 lacsupto Rs.25 lacs 15.45% 15.45% 15.95% 16.20%Over Rs.25 lacs based on Credit Risk Assessment

14.20% to 16.45 %

14.20% to 16.45 %

14.70 % 16.95%

14.95 % to 17.20%

Note: Crop Loans/Production loans up to Rs.3.00 lacs will be charged 7% p.a (fixed) as per Government of India (GoI) directives. It is subject to GoI providing 2% subvention to the Ban on such advances. Otherwise, as per Bank's norms.

Branches of SBI

State Bank Of India in Himachal Pradesh along with the location of its around 225 branches in the state.

State Bank of India has 173 foreign offices in 37 countries across the globe.

SBI has about 27,000+ 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 bellaryi e State bank of India bellary ADB

State Bank of India has become the first bank to install an ATM a Drass in Jammu

&KashmirsKargil region. This is the banks 27,032nd ATM on 27 july 2012(k.k)

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1.5INTRODUCTION OF ORGANISATION

HISTORY OF PUNJAB NATIONAL BANK

Punjab National Bank is the Second largest bank in India and Headquarter is at New Delhi. It was founded in 1894 and is currently the second largest state-owned commercial bank in India ahead of Bank of Baroda with about 5000 branches across 764 cities.

PNB was founded on 19 May 1894 under the Indian Companies Act at Lahore (presently in Pakistan) as on off-shoot of the SwadeshiMovement.Among the inspired founders were SarderDayal Singh Majjthia, LalaHarkishenLal, LalaLalchand(founding Father),Shri Kali Prosanna Roy, Shri EC jessawal,ShriPrabhuDayal, BakshiJaishi Ram, LalaDholanDass

With a common missionary zeal they set about establishing a national bank; the first one with Indian capital-owned managed and operated by the Indian for the benefit of the Indians.The Lion of Punjab LalaLajpatRai was actively associated with the management of the bank in its formative years.

He Bank made steady progress right from its inception. It has showresilience to tide over many

a crisis. It withstood the crisis in banking industry of 1913 and the severe depression of the thirties.

It survived the most critical period in its history-the partition 1947- when it was uprooted from its major areas of operations. It was the farsightedness of the management that the registered office of the bank was shifted from Lahore to Delhi in june 1947even before the announcement of the Partition.

With the passage of the time the bank grew to strength its wings from one corner of the countries to another. Some smaller banks like The BhagwanDass Limited ,Universal Bank of India, The Bharat Bank Limited, The Indo-Commercial Bank Limited, The Hindustan Commercial Bank Limited and The Nedungandi Bank were brought within its fold.

PNB has the privilege of maintaining the accounts of the illustrious national leaders like Mahatma Gandhi, Shri LalBahadurShastri, ShrimatiIndra Gandhi besides the accounts of the famous JalianwalaBagh Committee.

Nationalization in the 19th July with other 19 banks.

VISION

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“To be a Leading Global Bank with Pan India footprints and become a household brand in the Indo-Gangetic Plains providing entire range of Financial Products and Services under over one roof”.

MISSION

“ Banking For the Unbanked”.

Branches : 5670

ATM’s : 6009

Total Business :673363 cr.

Total Income in 2012 :40631 cr

Total Expenses in 2012 :30016 cr

EPS(Earning Per Share) :154.02 Rs

Punjab National Bank has branches in 214 cities of Himachal Pradesh state.

PUNJAB NATIONAL BANK ITEREST RATES

a) For domestic deposits - Above Rs. 100 cr (last revised on May 15, 2015)

MATURITY PERIOD DEPOSIT AMOUNT INTEREST RATE (% p.a.)

General

Senior Citizen

7 days to 14 days Above Rs. 100 cr 6.00

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N.A


N.A


N.A


N.A


N.A


N.A


N.A


Above Rs. 100 cr 7.50

N.A

1 year Above Rs. 100 cr 7.75

N.A

b) For domestic deposits - Less than Rs. 1 cr (last revised on Jun 08, 2015)

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General

Senior Citizen

7 days to 14 days Less than Rs. 1 cr 4.50

5.00


5.00


5.50


7.00


7.25


8.25


Less than Rs. 1 cr 7.75

8.25

1 year Less than Rs. 1 cr 8.25

8.75

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Above 1 years to 2 years Less than Rs. 1 cr 8.25

8.75


8.75


8.50

c) For domestic deposits - Rs. 1 cr to Rs. 10 cr (last revised on Jun 08, 2015)


General

Senior Citizen

7 days to 14 days Rs. 1 cr to Rs. 10 cr 6.00

N.A


N.A


N.A


N.A

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N.A


N.A


Rs. 1 cr to Rs. 10 cr 8.00

N.A

1 year Rs. 1 cr to Rs. 10 cr 8.25

N.A

Above 1 years to 2 years Rs. 1 cr to Rs. 10 cr 8.25

N.A


N.A


N.A

d) For domestic deposits - Rs. 10 cr to Rs. 100 cr (last revised on May 15, 2015)


General

Senior Citizen

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N.A


N.A


N.A


N.A


N.A


N.A


N.A


Rs. 10 cr to Rs. 100 cr 7.50

N.A


N.A

Tax Saver Fixed Deposits (Amount capped at Rs. 1 lakh per Financial Year)

MATURITY PERIOD DEPOSIT AMOUNT

INTEREST RATE (% p.a.)

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General

Senior Citizen

PNB Tax Saver Fixed Deposit Scheme - 5 years to10 years

Upto Rs. 1 lakh 8.00

N.A

PNB Tax Saver Fixed Deposit Scheme - 5 Years to 10 years

Upto Rs. 1 lakh 8.25

N.A

Tax Implications:

The amount invested in fixed deposits with a maturity period of 5 years in a Scheduled bank is eligible for tax deduction under section 80C. However, the interest earned on the deposit is taxable.

Tax will be deducted at the source, if the interest income on a fixed deposit per annum exceeds Rs.10000

a) For NRE Fixed Deposit - Less than Rs. 1 cr (last revised on Jun 08, 2015)


1 year Less than Rs. 1 cr 8.25



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b) For NRE Fixed Deposit - Rs. 1 cr to Rs. 10 cr (last revised on Jun 08, 2015)






PNB Short-Term FD Rates

The interest rate stands at 5.0% on a 30-day deposit. This is a reasonable return for those with near-term liquidity requirements. For schemes with tenors of 60 and 90 days, the rate stands at 6.5% which is enhanced by 0.5% for a tenor of 120 days (at 7%) and by 1.25% for a tenor of 9 months at 7.75%. For deposit periods of 180 days, rates have been further reduced to 7.50% i.e. a 0.25% reduction.

PNB Medium and Long -Term FD Rates

Interest rates on PNB’s fixed deposits for holdings of 1 year and above (up to 5 years) which were constant at 8.50% as of Apr.23rd 2015 have seen changes. Deposits held for 1 to 2 years

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are reduced by 0.15% while deposits held for 2 to 5 years will see a drop in rates to 8%. For tenures above 5 years, the rate holds steady at 8.5%.

PNB Senior Citizen FD Rates

An increment of 0.5% is offered on all existing FD rates, across tenors, for senior citizens.

PNBs FD rates are comparable to its peers making them attractive investment options for safe and assured returns.

Deposit rate changes are an outcome of RBI cuts in repo rates which has led PNB and many other banks to reduce their base rates.

PNB Current FD rates

Last Updated 09th Jul 15

Tenure Interest Rate

30 Days 5.00%

45 Days 5.00%

60 Days 6.50%

90 Days 6.50%

120 Days 6.75%

6 Months 7.50%

9 Months 7.50%

12 Months 8.10%

18 Months 8.10%

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2 Years 8.10%

3 Years 8.00%

4 Years 8.00%

5 Years 8.00%

7 Years 8.00%

10 Years 8.00%

Financial position of the bank during the last five

years

Balance Sheet of Punjab National Bank from March 2015

to March 2011

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Balance Sheet of Punjab National Bank ------------------- in Rs. Cr. -------------------

Mar '15 Mar '14 Mar '13 Mar '12 Mar '11


Capital and Liabilities:Total Share Capital 370.91 362.07 353.47 339.18 316.81Equity Share Capital 370.91 362.07 353.47 339.18 316.81Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 37,321.06 34,125.07 30,894.58 26,028.37 19,720.99Net Worth 37,691.97 34,487.14 31,248.05 26,367.55 20,037.80Deposits 501,378.64 451,396.75 391,560.06 379,588.48 312,898.73Borrowings 45,670.55 48,034.41 39,620.92 37,264.27 31,589.69Total Debt 547,049.19 499,431.16 431,180.98 416,852.75 344,488.42Other Liabilities & Provisions 17,204.89 15,093.44 15,019.15 13,524.18 12,328.27Total Liabilities 601,946.05 549,011.74 477,448.18 456,744.48 376,854.49

Mar '15 Mar '14 Mar '13 Mar '12 Mar '11


AssetsCash & Balances with RBI 24,224.94 22,245.58 17,886.25 18,492.90 23,776.90Balance with Banks, Money at Call 31,709.23 22,972.87 9,249.13 10,335.14 5,914.32Advances 380,534.40 349,269.13 308,725.21 293,774.76 242,106.67Investments 151,282.36 143,785.50 129,896.19 122,629.47 95,162.35Gross Block 3,551.48 3,419.74 3,357.68 3,168.86 3,105.60Revaluation Reserves 1,387.55 1,408.18 1,428.85 1,449.53 1,470.76Accumulated Depreciation 0.00 0.00 0.00 0.00 0.00Net Block 2,163.93 2,011.56 1,928.83 1,719.33 1,634.84Capital Work In Progress 0.00 0.00 0.00 0.00 0.00Other Assets 12,031.19 8,727.10 9,762.58 9,792.88 8,259.42Total Assets 601,946.05 549,011.74 477,448.19 456,744.48 376,854.50

Contingent Liabilities 293,586.00 238,008.93 231,810.55 224,750.05 138,915.26Bills for collection 0.00 0.00 0.00 0.00 0.00Book Value (Rs) 203.24 952.50 884.03 777.39 632.48

CHAPTER-II

REVIEW OF LITERATURE

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REVIEW OF LITERATURE

The banking sector in India has made remarkable progress since the economic reforms in

1991.New private sector banks have brought the necessary competition into the industry and

spearheaded the changes towards higher utilization of technology, improved customer service

and innovative products. Customers are now becoming increasingly conscious of their rights and

are demanding more than ever before.

1. Robert B. Avery and Allen N. Berger had studied about the Loan commitments and

bank risk exposure. They studied about the Loan commitments increase a bank's

risk by obligating it to issue future loans under terms that it might otherwise refuse.

However, moral hazard and adverse selection problem spontaneitally may result in these

contracts being rationed or sorted.

2. SumitAgarwal,SouphalaChomsisengphetand John C. Driscoll had studied about the

Loan commitments and private firms. They studied that, Most loans are in the form

of credit lines. Empirical studies of line demand have been complicated by their use of

data on publicly traded firms, which have a wide menu of financing options.

3. In may 1991 Stephen F. Borde had studied about the “Is the Savings and Loan Industry

Facing Extinction?” This article tells about the Saving and loan crisis. Proposed

solutions are discussed in the context of the industry as it currently stands. With a

somewhat similar liability structure to that of banks (mainly short-term deposits), the

asset structure of S&Ls is quite different. Whereas banks assets consist of short-term

loans, S&L assets consist largely of long-term loans, such as home ownership

mortgages. Therefore, in the absence of adequate hedging measures, S&Ls are more

vulnerable to interest rate risk, which can lead to lower profits when interest rates rise.

4. In 1991 Susan M. Wachter and Paul S. Calemhad studied about the Community

Reinvestment and Credit Risk: Evidence from an Affordable Personal Loan Program.

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This study examines the performance of personal loans originated by a major depository

institution in Philadelphia under a flexible lending program between 1988 and 1994.

5. In feb 1 2009 Vincent W. Yao and Eric Rosenblatt and Michael LaCour-Little had

studied about the unique paired loan dataset containing information on multiple

conventional conforming mortgage loans of extraction decisions over the period 2000-

2006.

CHAPTER-III

NEED, SCOPE ANDOBJECTIVES OF

THE STUDY

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NEED, SCOPE AND OBJECTIVES OF THE STUDY

3.1 NEED OF STUDY

The researches that were conducted in past by various professionals were regarding various

services of SBI but not done about the “Comparative analysis of SBI bank and PNB”. In

previous time not any study done regarding the “Comparative analysis of SBI and PNB ”. This

gap has been identified and it has led to the present research being under taken so, the need was

felt to cover the area as neglected, thus “Comparative analysis of SBI and PNB”.

3.2 SCOPE OF STUDYThis study is to analysis and find which bank provides the best loan services. It is helps in

analyzing both the bank’s loan services provided to their customers. Scope of the study is limited

in SHIMLA only.

3.3 OBJECTIVE OF THE STUDYThis study has been conducted with a variety of important objectives in mind.

The Chief Objectives of this study are:

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1. To analyses the position and services of SBI and PNB.

2. To know the consumer perception about the different loans of SBI and PNB.

3. To give Suggestions to improve the services.

4. To study the problem faced by customer.

5. To study whether the customers are satisfied with their service.

CHAPTER- IV

RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

Research is an art of scientific investigation. In other word research is a scientific and systematic

search for pertinent information on a specific topic. The logic behind taking research

methodology into consideration is that one can have knowledge about the method and procedure

adopted for achievement of objectives of the project. With the adoption of this others can

evaluate the results also. Its main aim is to keep the researchers on the right track.

The methodology adopted for studying the objectives was surveying the saving account holders

of Shimla area only. So the nature of requirements of the study to collect all the relevant

information regarding the study collect direct personal interview method with structured

questionnaire was adopted for the collection of primary data.

Secondary data has been collected through the various magazines and newspapers and by surfing

on Internet. And the guide in the organization was consulted at many times.

SAMPLE DESIGN:-A sample design is a definite plan for obtaining a sample from a given

population. It refers to the techniques or the procedure the researcher would adopt in selecting

items for the sample. Sample design may as well lay down the number of items to be included in

the sample i.e. the size of the sample. Sample design is determined before data are collected.

Here we select the population as sample in our sample design. The selected respondents should

be as representatives of the total population.

POPULATION

The study aimed to include the customers of SBI and PNB in Shimla area, to make a

comparative analysis of different loan schemes of these two banks.

SAMPLE SIZE

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A Sample size of 100 respondents will be taken for the current study because it is not possible to

cover the whole universe in the available time period. So it is necessary to take the sample size.

In 100 respondents 50 respondents from SBI and 50 from PNA were included for the study. The

samples will be taken from peoples of age group lying between 15 to above 45 years. The sample

will be taken in the form of strata based on age, sex, and income group.

Sampling technique:

The sampling techniques used are convincing technique and simple random sampling technique.

Sample area:It includes the customer of Shimla Area Only.

Type of Research

The study undertaken is of ―Descriptive Research in nature.

Methods of Data Collection

Data was collected by using main two methods i.e primary data and secondary data

PRIMARY DATA

Primary data is the data which is used or collected for first time and it is not used by anyone in

the past. There are number of sources of primary data from which the information can be

collected.

QUESTIONNAIRE:-This method of data collection is quite popular. Here in our research we

set 13 simple questions and request the respondents to answer these questions with correct

information.

RESPONDENTS:-Respondents helps in creation of more accurate idea about our research. We

personally meet the respondents inside and outside the banks.

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SECONDARY DATA

Secondary data is the data which is available in readymade form and which is already used by

people for some purposes. There may be various sources of secondary data such as-newspapers,

magazines, journals, books, reports, documents and other published information.\

JOURNALS AND PUBLICATIONS OF DIFFERENT BANKS:-We also take into

consideration the journals and publications issued by the bank at different times. We come to

know about the Branches, ATM, locations and other useful information.

MANUALS AND BROUCHERS OF DIFFERENT BANKS:-We take the help of bank staff

and other people who give us deep information and data which may not be available at

anywhere. They give us there full co-operation.

INTERNET:-We also take into consideration the internet facility with which we collect lot of latest information.

Tools and Techniques:

As no study could be successfully completed without proper tools & techniques. So for the better

presentation and right explanation I used tools of statistics and computer very frequently and I

am very thankful to all those tools for helping me a lot. Basic tools which I used for project are:

1. BAR CHARTS

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2. PIE CHARTS

3. TABLES

Bar charts and pie charts are very useful tools for every research to show the result in a clear,

simple way. So I need not necessary for any observer to read all the theoretical detail, simple on

seeing the charts anybody that what is being said.

CHAPTER-V

DATA ANALYSIS AND INTERPRETATION

5.1-ANALYSIS AND INTERPRETATION OF DATA

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STATE BANK OF INDIA NO. OF RESPONDENTS =50

1. From how many years you are associated with this bank?

Table 5.1.1

RESPONSE NO. OF RESPONDENTS %AGE A.Less than 10 year 8 16 %

B.10-20 16 32 %

C.More than 20 years 26 52 %

TOTAL 50 100 %

Analysis: -Figure 5.1.1

Customers associated with SBI0%

10%

20%

30%

40%

50%

60%

Less than 10 year 10-20 More than 20 years

INTERPRETATION –In this chart it is very much clear that 16% respondents are

associated less than 10 year, 32% respondents are associated from 10-20 years, 52%

respondents are associated from more than 20 years.

2. How do you come to know about the different loan schemes of this bank?

Table 5.1.2

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RESPONCE NO. OF RESPONDENTS %AGE

A. News paper 10 20 %

B. Television 03 06 %

C. Internet 18 36 %

D. Other sources 19 38 %

TOTAL 50 100 %


20%

6%

36%

38%

Sources of information

News paper

Television

Internet

Other sources

INTERPRETATION–In this pie chart it is very much clear that 20% respondents came to

know from newspaper, 06% respondents came to know from television, 36% respondents came

to know from internet, 38% respondents came to know from other resources.

3. What type of loan you taken from bank?Table 5.1.3


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A. Personal loan 16 32%

B. Agriculture loan 8 16%

C. Home loan 6 12%

D. Education loan 9 18%

E. Other loan 11 22%

TOTAL 50 100 %


Personal loan

Agriculture loan

Home loan Education loan

Other loan0%

5%

10%

15%

20%

25%

30%

35%

Types of loan

Types of loan

INTERPRETATION –In this chart it is very much clear that 32% respondents taken

personal loan, 16% respondents taken agriculture loan, 12% respondents taken home loan, 18%

respondents taken education loan, 22% respondents taken other loan.

4. Are you aware all term and conditions of the loan?

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Table 5.1.4


A. Yes 31 62%

B. No 19 38%

TOTAL 50 100 %

Analysis:-Figure 5.1.4

62%

38%

Awareness about term and conditions of loan

Yes No

INTERPRETATION–In this pie chart it is very much clear that62% respondents know all

terms and conditions of the loan, 38% respondents had not known properly about all terms and

conditions of the loan.

5. Are you satisfy with the interest rate charges by your bank?

Table 5.1.5

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A. Strongly agree 18 36%

B. Agree 15 30%

C. Strongly disagree 10 20%

D. Disagree 7 14%

TOTAL 50 100 %


36%

30%

20%

14%

Level of satisfaction with interest rate charges by bank

Strongly agree Agree Strongly disagree Disagree

INTERPRETATION–In this pie chart it is very much clear that36% respondents are

strongly agreed by interest rate charges by bank, 30% respondents are agreed by interest rate

charges by bank, 20% respondents are strongly disagreed by interest rate charges by bank,

14% respondents are disagreed by interest rate charges by bank.

6. Do you agree that your bank loan processing is fast?

Table 5.1.6


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B. Agree 12 24%


D. Disagree 7 14%

TOTAL 50 100 %

Analysis: -Figure 5.1.

40%

24%

22%

14%

Agree with loan processing is fast


INTERPRETATION – In this pie chart it is very much clear those 40% respondents

Strongly agree that bank loan processing is fast, 24% respondents agree that bank loan

processing is fast, 22% respondents strongly disagree that bank loan processing is fast, 14%

respondents disagree that bank loan processing is fast.

7. Do you satisfy with the after loan services provided by your bank are Best as compare to other bank?

Table 5.1.7

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B. Agree 5 10%


D. Disagree 5 10%

TOTAL 50 100 %


48%

10%

32%

10%

Satisfy with after loan services provided by bank

Strongly agree Agree Strongly disagree disagree


strongly agreed by after loan services of the bank, 10% respondents are agreed by after loan

services of the bank, 32% respondents are strongly disagreed by after loan services of the bank,

10% respondents are disagreed by after loan services of the bank.

8. Does the cost of loan is appropriate, according to your demand?

Table 5.1.8


A. Yes 29 58%

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B. No 21 42%

TOTAL 50 100 %


58%

42%

Loan cost is appropriate according your demand

Yes No

INTERPRETATION–In this pie chart it is very much clear that58% respondents said that

loan cost is appropriate according to their demand, 42% respondents said that loan cost is not

appropriate according to their demand.

9. Are you satisfy with the employee’s behavior of the bank?

Table 5.1.9


A. Yes 31 62%

B. No 19 38%

TOTAL 50 100 %

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Yes No0%

10%

20%

30%

40%

50%

60%

70%

Satisfy with employees behaviour of the bank

Satisfy with em-ployees behaviour of the bank

INTERPRETATION–In this chart it is very much clear that 62% respondents satisfied with

the employee behavior of the bank, 38% respondents not satisfied with the employee behavior of

the bank.

10. Does the bank give any discount upon loan services?

Table 5.1.10


A. Yes 21 42%

B. No 29 58%

TOTAL 50 100 %

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Yes No0%

10%

20%

30%

40%

50%

60%

70%Bank give any discount upon loan services

Bank give any discount upon loan services

INTERPRETATION–In this chart it is very much clear that 42% respondents said that bank

give discount upon loan services and 58% respondents said that bank does not give any discount

upon loan services.

11. Are you satisfy by the time taken in sanctioning the loan?

Table 5.1.11


A. Yes 32 64%

B. No 18 36%

TOTAL 50 100 %


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YES64%

NO36%

Satisfy with bank time taken in sactioning the loan

INTERPRETATION–In this pie chart it is very much clear that 64% respondents are

satisfied by the time taken in sanctioning the loan, 36% respondents are not satisfied by the time

taken in sanctioning the loan.

12. Have you face any difficulty during taking the loan?

Table 5.1.12


A. Yes 19 38%

B. No 31 62%

TOTAL 50 100 %


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Yes No0%

10%

20%

30%

40%

50%

60%

70%

Customers face any difficulty during taking the loan

Customers face any diffi-culty during taking the loan

INTERPRETATION–In this chart it is very much clear that 38% respondents face

difficulty during taking the loan, 62% respondents does not face any difficulty during taking the

loan.

13. Which grade you want to give loan schemes of your bank?

Table 5.1.13


A. Excellent 20 40%

B.Good 18 36%

C. Average 7 14%

D.Blow average 5 10 %

TOTAL 50 100 %


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Excellent Good Average Blow average0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Grade give to loan schemes of your bank


INTERPRETATION– In this chart it is very much clear that 40% respondents give

excellent grade of the bank loan schemes,36% respondents give good grade to the bank loan

schemes, 14% respondents give average grade to the bank loan schemes, 10% respondents give

below average grade to the bank loan schemes.

5.2-ANALYSIS AND INTERPRETATION OF DATA

PUNJAB NATIONAL BANK NO. OF RESPONDENTS =50


Table 5.2.1

RESPONCE NO. OF RESPONDENTS %AGE A. Less than 10 year 10 20 %

B. 10-20 20 40 %

C. More than 20 years 20 40 %

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TOTAL 50 100 %


Customers associated with PNB0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Less than 10 year 10-20 More than 20 years

INTERPRETATION –In this chart it is very much clear that 20% respondents are

associated less than 1 year, 40% respondents are associated from 1-5 years, 40% respondents are

associated from more than 5 years.


Table 5.2.2


A. News paper 25 50 %

B. Television 05 10 %

C. Internet 10 20 %

D. Other sources 10 20 %

TOTAL 50 100 %


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50%

10%

20%

20%

Sources of information

News paper

Television

Internet

Other sources

INTERPRETATION–In this pie chart it is very much clear that 50% respondents came to

know from newspaper, 10% respondents came to know from television, 20% respondents came

to know from internet, 20% respondents came to know from other resources.

3. What type of loan you taken from bank?

Table 5.2.3

RESPONCE NO. OF RESPONDENTS %AGE A. Personal loan 18 36%

B. Agriculture loan 12 24%

C. Home loan 10 20%

D. Education loan 06 12%

E. Other loan 04 08%

TOTAL 50 100 %

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Personal loan

Agriculture loan

Home loan Education loan

Other loan0%

5%

10%

15%

20%

25%

30%

35%

40%

Types of loan

Types of loan

INTERPRETATION –In this chart it is very much clear that 36% respondents taken

personal loan, 24% respondents taken agriculture loan, 20% respondents taken home loan, 12%

respondents taken education loan, 08% respondents taken other loan.


Table 5.2.4


A. Yes 15 30%

B. No 35 70%

TOTAL 50 100 %


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30%

70%

Awareness about term and conditions of loan

Yes No

INTERPRETATION–In this pie chart it is very much clear that30% respondents know all

terms and conditions of the loan, 70% respondents had not know properly about all terms and

conditions of the loan.


Table 5.2.5

RESPONSE NO. OF RESPONDENTS %AGE


B. Agree 12 24%

C.Strongly disagree 18 36%

D. Disagree 12 24%

TOTAL 50 100 %


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16%

24%

36%

24%

Level of satisfaction with interest rate charges by bank



strongly agreed by interest rate charges by bank, 24% respondents are agreed by interest rate

charges by bank, 36% respondents are strongly disagreed by interest rate charges by bank,

24% respondents are disagreed by interest rate charges by bank.


Table 5.2.6



B. Agree 10 20%


D. Disagree 05 10%

TOTAL 50 100 %


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16%

20%

54%

10%

Agree with loan processing is fast


INTERPRETATION – In this pie chart it is very much clear those 16% respondents

Strongly agree that bank loan processing is fast, 20% respondents agree that bank loan

processing is fast, 54% respondents strongly disagree that bank loan processing is fast, 10%

respondents disagree that bank loan processing is fast.

7. Do you satisfy with the after loan services provided by your bank are Best as compare to other bank?

Table 5.2.7



B. Agree 15 30%


D. Disagree 16 32%

TOTAL 50 100 %

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18%

30%

20%

32%

Satisfy with after loan services provided by bank

Strongly agree Agree Strongly disagree disagree


strongly agreed by after loan services of the bank, 30% respondents are agreed by after loan

services of the bank, 20% respondents are strongly disagreed by after loan services of the bank,

32% respondents are disagreed by after loan services of the bank.


Table 5.2.8


A. Yes 17 34%

B. No 33 66%

TOTAL 50 100 %


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34%

66%

Loan cost is appropriate according your demand

Yes No

INTERPRETATION–In this pie chart it is very much clear that34% respondents said that

loan cost is appropriate according to their demand, 66% respondents said that loan cost is not



Table 5.2.9


A. Yes 19 38%

B. No 31 62%

TOTAL 50 100 %


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INTERPRETATION–In this chart it is very much clear that 38% respondents satisfied with

the employee behavior of the bank, 62% respondents not satisfied with the employee behavior of

the bank.

10. Does the bank give any discount upon loan services?Table 5.2.10


A. Yes 10 20%

B. No 40 80%

TOTAL 50 100 %


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Yes No0%

10%

20%

30%

40%

50%

60%

70%

Satisfy with employees behaviour of the bank

Satisfy with em-ployees behaviour of the bank

Yes No0%

10%

20%

30%

40%

50%

60%

70%

80%

90%



INTERPRETATION–In this chart it is very much clear that 20% respondents said that bank

give discount upon loan services and 80% respondents said that bank does not give any discount

upon loan services.


Table 5.2.11


A. Yes 26 52%

B. No 24 48%

TOTAL 50 100 %


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satisfied by the time taken in sanctioning the loan, 48% respondents are not satisfied by the time

taken in sanctioning the loan.


Table 5.2.12


A. Yes 35 70%

B. No 15 30%

TOTAL 50 100 %


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YES52%

NO48%

Satisfy with bank time taken in sactioning the loan

Yes No0%

10%

20%

30%

40%

50%

60%

70%

80%

Customers face any difficulty during taking the loan

Customers face any diffi-culty during taking the loan

INTERPRETATION–In this chart it is very much clear that 70% respondents face

difficulty during taking the loan, 30% respondents does not face any difficulty during taking the

loan.


Table 5.2.13


A. Excellent 5 10%

B. Good 11 22%

C. Average 14 28%

D. Blow average 20 40%

TOTAL 50 100 %


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Excellent Good Average Blow average0%

5%

10%

15%

20%

25%

30%

35%

40%

45%



INTERPRETATION– In this chart it is very much clear that 10% respondents give

excellent grade of the bank loan schemes,22% respondents give good grade to the bank loan

schemes, 28% respondents give average grade to the bank loan schemes, 40% respondents give

below average grade to the bank loan schemes.

CHAPTER-VI

FINDINGS AND CONCLUSION & LIMITATION OF

THE STUDY

6.1 FINDING OF THE STUDY

1. Respondents related with SBI came to know about the different loan schemes from other

source and respondents related with PNB came to know about the different loan schemes

from newspaper.

2. Respondents related with SBI bank know all terms and conditions of the loan as compare

to PNB.

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3. Respondents related with SBI bank are more satisfied with the interest rate as compare to

PNB.

4. Loan processing of SBI bank is fast as compare to PNB.

5. Respondents related with SBI are more satisfied with the employee behavior as compare

to PNB.

6. Majority of the respondents of PNB bank are disagreed with after loan services of the

bank and Majority of the respondents of SBI are strongly agreed with after loan services

of the bank.

7. Majority of the respondents of PNB are not satisfied with cost of loan appropriate

according to their demand. Majority of the respondents of SBI satisfied with cost of loan


8. Respondents related with SBI are more satisfied with the time taken in sanctioning the

loan as compare to PNB.

9. Majority of the respondents related with SBI does not faces any difficulty during taking

the loan as compare to PNB.

10. Majority of the respondents related with SBI bank gives excellent grade to the bank loan

schemes and majority of the respondents related with PNB give below average grade to

the bank loan schemes.

6.2 CONCLUSION OF RESEARCH REPORT

During this research project I fill the questionnaires 100 Respondents50 respondents from SBI

and 50 from PNB bank in Shimla area. Respondents related with SBI bank know all terms and

conditions of the loan as compare to PNB. Majority of the respondents related with SBI not face

any difficulty during taking the loan as compare to PNB . Majority of the respondents related

with SBI give excellent grade of the bank loan schemes and majority of the respondents related

with PNB give blow average grade of the bank loan schemes. Respondents related with SBI

more satisfy with the time taken in sanctioning the loan as compare to PNB.

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Majority of the respondents of both banks said that bank does not give any discount upon loan

services. Majority of the respondents of PNB not satisfied with cost of loan is appropriate

according to their demand. Majority of the respondents of SBI satisfied with cost of loan is

appropriate according to their demand. Respondents related with SBI is more satisfy with the

employee behavior as compare to PNB. Respondents related with SBI more satisfy with the

interest rate as compare to PNB. Loan processing of SBI is fast as compare to PNB.

From all this I conclude that SBI provide good services as compare to PNB and many people’s

are very satisfied from SBI.

6.3 LIMITATION OF THE STUDY

Although best of the efforts were made to conduct a prefect survey but still it faces certain

limitation. Following were certain limitation of this project.

1. The survey was conducted on 100 respondents.

2. Some of the respondents did not answer all the questions, which could hamper the final

results to a certain extent.

3. The study confines itself to the respondents of “SHIMLA” region only. Hence findings

would not be relevant to other cities.

4. The sample size is small due to the specified reasons.

5. Findings are based on sample survey.

6. The sample – plan is too small to give the research a wide coverage with reference to

their opinion.

7. The respondents are not interested to give information.

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8. The educational & awareness level of the respondents with respect to the questionnaires

is low.

9. Not Efficient time to complete it at large level.

10. Lack of Experience in the field of Research.

CHAPTER – VII

RECOMMENDATIONS,

SUGGESTIONS AND FUTURE SCOPE

RECOMMENDATIONS / SUGGESTIONS / FUTURE SCOPE

STATE BANK OF INDIA

1. For more satisfaction of customers all the branches should be computerized or online for

better services.

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2. Give the discount upon the loan services to increase more customer’s base.

3. More advertisement related to the loan schemes in newspaper, television and internet etc.

PUNJAB NATIONAL BANK

1. Reduce difficulty during taking the loan.

2. Reduce the time taken in sanctioning the loan.

3. Reduce the cost of loan to serve more customers.

4. Aware the customer about term and conditions of the loan schemes.

5. Improve the employee’s behavior.

6. Increase the various schemes.

CHAPTER – VIII

BIBLIOGRAPHY /REFERENCE

BIBLIOGRAPHY / REFERENCES

Books

1. Kothari C.R (2004) Research methodology: “Method and tech”, second edition, new age

international publisher, New Delhi.

2. Research Methodology, ICFAI publication.

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3. S.P. Gupta Statistics Book K publication.

Internet

1. www.statebankofindia.com2. http://en.wikipedia.org/wiki/State_Bank_of_India

3. http://www.indiahousing.com/sbi-bank/loans.html

4. www.wikipedia.org/pnb

5. www.wikipedia.org/sbi

6. [email protected]

ANNEXURE

QUESTIONNAIRE

I Rohit Kumar conducting a research on the topic “Comparative Analysisof State Bank of India and Punjab National Bank” and I request you to fill

the questionnaire. This will take 3-5 minutes of your time .I promise to keep the

information confidential.

Demographic Information

Name ...............................................................

Qualification .......................................................

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http://www.wikipedia.org/sbi

http://www.wikipedia.org/pnb

http://www.indiahousing.com/sbi-bank/loans.html

http://en.wikipedia.org/wiki/State_Bank_of_India

http://www.statebankofindia.com/

Age 15-25 26-35 36-45 Above 45

Gender Male Female

Occupation - Student Serviceman Businessman

House wife Government employee

Other

Place .....................................


a. Less than 1 year b. 1-5

c. More than 5 years


a. Newspaper b.Television

c.Internet d.Other resources

3. What type of loan you taken from bank?

a.Personal loan b. Agriculture loan

c. Home loan d. Education loan

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e. Any other loan..........................................


a. Yesb. No


a. Strongly agree b. Agree

c. Strongly disagree d. disagree



c. Strongly Disagree d. Disagree

7. Do you satisfy with the after loan services provided by your bank are

Best as compare to other bank?


c. Strongly Disagree d. Disagree


a. Yesb. No


a. Yesb. No

10. Does the bank give any discount upon loan services?

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a. Yesb. No


a. Yesb. No


a. Yes b. No

If yes then specify...............................................................


a. Excellent b. Good

c. Average d. Blow average

Thanks for your co-operation.

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comparison of sbi and pnb

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