customer satisfaction at sbi

8/13/2019 Customer Satisfaction at SBI

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1

Company Profile

State Bank of India is the largest and one of the oldest commercial bank in India, in

existence for more than 200 years. The bank provides a full range of corporate,

commercial and retail banking services in India. Indian central bank namely

eserve Bank of India !BI" is the ma#or share holder of the bank $ith %&.'(

stake. The bank is capitali)ed to the extent of s.*+*bn $ith the public holding

!other than promoters" at +0.(. SBI has the largest branch and -T net$ork

spread across every corner of India. The bank has a branch net$ork of over /+,000

branches !including subsidiaries". -part from Indian net$ork it also has a net$ork

of ' overseas offices in 0 countries in all time )ones, correspondent relationship

$ith %20 International banks in /2 countries. In recent past, SBI has acuired

banks in auritius, 1enya and Indonesia. The bank had total staff strength of

/&,''+ as on /st arch, 200*. 3f this, 2&.%/( are officers, +%./&( clerical staff

and the remaining 2%.0( $ere sub4staff. The bank is listed on the Bombay Stock

5xchange, 6ational Stock 5xchange, 1olkata Stock 5xchange, 7hennai Stock

5xchange and -hmedabad Stock 5xchange $hile its 89s are listed on the

:ondon Stock 5xchange. SBI group accounts for around 2%( of the total business

of the banking industry $hile it accounts for %( of the total foreign exchange in

India. ;ith this type of strong base, SBI has displayed a continued performance in

the last fe$ years in scaling up its efficiency levels. 6et Interest Income of the

bank has $itnessed a 7-8 of /.( during the last five years. 9uring the same

period, net interest margin !6I" of the bank has gone up from as lo$ as 2.&( in

anuary /0&". - uniue institution, it $as the first #oint4

stock bank of British India sponsored by the 8overnment of Bengal. The Bank of


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Business

The business of the banks $as initially confined to discounting of bills of

exchange or other negotiable private securities, keeping cash accounts and

receiving deposits and issuing and circulating cash notes. :oans $ere restricted to

s.one :akh and the period of accommodation confined to three months only. The

security for such loans $as public securities, commonly called 7ompany?s @aper,

bullion, treasure, plate, #e$els, or goods ?not of a perishable nature? and no interest

could be charged beyond a rate of t$elve per cent. :oans against goods like

opium, indigo, salt $oollens, cotton, cotton piece goods, mule t$ist and silk goods

$ere also granted but such finance by $ay of cash credits gained momentum only

from the third decade of the nineteenth century. -ll commodities, including tea,

sugar and #ute, $hich began to be financed later, $ere either pledged orhypothecated to the bank. 9emand promissory notes $ere signed by the borro$er

in favour of the guarantor, $hich $as in turn endorsed to the bank. :ending

against shares of the banks or on the mortgage of houses, land or other real

property $as, ho$ever, forbidden.

Indians $ere the principal borro$ers against deposit of 7ompany?s paper, $hile

the business of discounts on private as $ell as salary bills $as almost the

exclusive monopoly of individuals 5uropeans and their partnership firms. But themain function of the three banks, as far as the government $as concerned, $as to

help the latter raise loans from time to time and also provide a degree of stability

to the prices of government securities.

First Five Year Plan

In /&%/, $hen the


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Management

The bank has /+ directors on the Board and is responsible for the management of

the BankAs business. The board in addition to monitoring corporate performance

also carries out functions such as approving the business plan, revie$ing and

approving the annual budgets and borro$ing limits and fixing exposure limits. r.

3. @. Bhatt is the 7hairman of the bank. The five4year term of r. Bhatt $ill

expire in arch 20//. @rior to this appointment, r. Bhatt $as anaging 9irector

at State Bank of Travancore. r. Bhatt has more than 0 years of experience in

the Indian banking industry and is seen as futuristic leader in his approach to$ards

technology and customer service. r. Bhatt has had the best of foreign exposure

in SBI. ;e believe that the appointment of r. Bhatt $ould be a key to SBIAsfuture gro$th momentum. r. T S Bhattacharya is the anaging 9irector of the

bank and kno$n for his vast experience in the banking industry. ecently, the

senior management of the bank has been broadened considerably. The positions of

7uly /&%%. ore than a uarter of

the resources of the Indian banking system thus passed under the direct control of

the State. :ater, the State Bank of India !Subsidiary Banks" -ct $as passed in

/&%&, enabling the State Bank of India to take over eight former State4associated

banks as its subsidiaries !later named -ssociates".

The State Bank of India $as thus born $ith a ne$ sense of social purpose aided by

the +0 offices comprising branches, sub offices and three :ocal ead 3ffices

inherited from the Imperial Bank. The concept of banking as mere repositories of

the community?s savings and lenders to credit$orthy parties $as soon to give $ay

to the concept of purposeful banking subserving the gro$ing and diversified

financial needs of planned economic development. The State Bank of India $as

destined to act as the pacesetter in this respect and lead the Indian banking system

into the exciting field of national development.


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COMPTITORS

Competitors and ot!er players in t!e field"#

Top Performing Pu$li% Se%tor Banks

-ndhra Bank

-llahabad Bank

@un#ab 6ational Bank

9ena Bank

Ci#aya Bank

Top Performing Private Se%tor Banks

9


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SB7 Bank

-B6 -3 Bank

-merican 5xpress

Strengt!& Opportunities"

The gro$th for SBI in the coming years is likely to be fueled by the

follo$ing factorsE

7ontinued effort to increase lo$ cost deposit $ould ensure improvement in6Is and hence earnings.

8ro$ing retail F S5s thrust $ould lead to higher business gro$th.

Strong economic gro$th $ould generate higher demand for funds pursuant

to higher corporate demand for credit on account of capacity expansion.

'eakness& T!reats"

The risks that could ensue to SBI in time to come are as underE

SBI is currently operating at a lo$est 7-. Insufficient capital may restrict

the gro$th prospects of the bank going for$ard.

Stiff competition, especially in the retail segment, could impact retail

gro$th of SBI and hence slo$do$n in earnings gro$th.

7ontribution of retail credit to total bank credit stood at 2*(. Significant

thrust on gro$ing retail book poses higher credit risk to the bank.

9elay in technology upgradation could result in loss of market shares.

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anagement indicated a likely pension shortfall on account of -S4/% to be

close to s%0bn.

(IFFR)T PRO(*CTS OF SBI"

(POSIT +O,)S C,R(S (IFFR)T

CR(IT C,R(S

Savings

-ccount

ome

:oans 7onsumer

7ards

SBI

International

cards

:ife @lusSenior

7iti)ens

Savings

-ccount

:oan-gainst

@roperty

7redit 7ard SBI 8oldcards


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ural Savings

-ccount


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Introdu%tion to ,dvan%e Produ%t"

6o$ a day not all the people have the capacity to fulfill their reuirement by their

o$n earning, thatAs $hy they need help from others.


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SBI ,dvan%e Produ%t

SBI Home +oans"

Purpose

@urchaseH 7onstruction of ouseH


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+oan ,mount

+0 to *0 times of 6I, depending on repayment capacity as ( of 6I as under

6et -nnual Income 5IH6I atio

Jpto s.2 lacs +0(

-bove s.2 lac to s. % lacs %0(

-bove s. % lacs %%(

To en!an%e loan eligi$ility you !ave option to add"

./ In%ome of your spouse&your sonH daughter living $ith you, provided they have

a steady income and hisH her salary account is maintained $ith SBI.

0/ -pe%ted rent a%%ruals!less taxes, cess, etc." if the houseH flat being purchased

is proposed to be rented out.1/ (epre%iation, sub#ect to some conditions.

2/ Regular in%omefrom all sources

Margin!Special


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Floating interest rates

3linked to State Bank ,dvan%e Rate # SB,3SB,R" .0/045 p/a/6

:oan Tenor

4KJpto % years

-bove % years

and upto /% years

-bove /% years and

upto 2% years

Jpto s.0

:acs

2.2%( belo$

SB-, /0.00( p.a.

2.00( belo$

SB-, /0.2%( p.a.

/.'%( belo$

SB-, /0.%0( p.a.

-bove

s.0 :acs

2.00( belo$

SB-, /0.2%( p.a.

/.'%( belo$

SB-, /0.%0( p.a.

/.%0( belo$

SB-, /0.'%( p.a.

Fi-ed interest rates

Tenure Rate of Interest

3p/a/67Jpto /0 years /2.'%(

L


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C,R +O,)"

Purpose

=ou can take finance forE

- ne$ car, #eep or ulti Jtility Cehicles !JCs"

- used car H #eep !not more than % years old". !-ny make or model".

Take over of existing loan from other BankH


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Salient Features

+oan ,mount

There is no upper limit for the amount of a car loan. - maximum loan amount of

2.% times the net annual income can be sanctioned. If married, your spouse?s

income could also be considered provided the spouse becomes a co4borro$er

in the loan. The loan amount includes finance for one4time road tax, registration

and insuranceM

6o ceiling on the loan amount for ne$ cars.

:oan amount for used car is sub#ect to a maximum limit of s. /% lacs.

Type of +oan

/. Term :oan

2. 3verdraft 4 a"


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Margin

6e$ H Jsed vehiclesE /%( of the on the road price.

Repayment

=ou en#oy the longest repayment period in the industry $ith us.

epayment periodE


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F+O,TI): R,TS"

,/ for Term +oans

Repayment Period ,ll Centers 3SB,R # .0/0456

Jpto years !for loans s. '.% lac F above" 0.'%( belo$ SB- i.e. //.%0( p.a.

Jpto years !for loans belo$ s. '.% lac" 0.%0( belo$ SB- i.e. //.'%(p.a.

-bove yrs up to % yrs !for all loans" 0.%0( belo$ SB- i.e. //.'%( p.a.

-bove % yrs up to ' yrs !for all loans" 0.2%( belo$ SB- i.e. /2.00( p.a.

Repayment Period ,ll Centers 3SB,R#.0/0456

Jpto years .00( above SB- i.e. /%.2%( p.a.

-bove yrs up to ' yrs .2%( above SB- i.e. /%.%0( p.a.

(*C,TIO) +O,)"

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- term loan granted to Indian 6ationals for pursuing higher education in India or

abroad $here admission has been secured.

ligi$le Courses

-ll courses having employment prospects are eligible.

8raduation coursesH @ost graduation coursesH @rofessional courses

3ther courses approved by J87H8overnmentH-I7T5 etc.

-penses %onsidered for loan


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Pro%essing Fees

6o processing feeH upfront charges

9eposit of s. %000H4 for education loan for studies abroad $hich $ill bead#usted in the margin money

Repayment Tenure

epayment $ill commence one year after completion of course or * months after

securing a #ob, $hichever is earlier.

17

Pla%e of Study +oan ,mount Repayment in

Period

Years

Studies in India s. /0.0 lacs %4'

Studies -broad s. 20.0 lacs %4'


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Se%urity

,mount For loans upto Rs/ .;/;; la%s for Studies in

India and upto Rs/ 0;/;; la%s for studies

a$road

Jpto s. + lacs 6o Security

s. '.%0 lacs 7ollateral security in the form of suitable third

party

8uarantee. The bank may, at its discretion, in

exceptional cases, $eive third party guarantee if

satisfied $ith the net4$orthHmeans of parentHs

$ho

$ould be executing the documents as N#oint

borro$erN

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Tangible collateral security of suitable value,

along

$ith the assignment of future income of the

student


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SBI S,R,+ PRSO),+ +O,)"

Purpose

The loan $ill be granted for any legitimate purpose $hatsoever !e.g. expenses for

domestic or foreign travel, medical treatment of self or a family member, meeting

any financial liability, such as marriage of sonHdaughter, defraying educational

expenses of $ards, meeting margins for purchase of assets etc."

ligi$ility

=ou are eligible if you are a Salaried individual of good uality corporate, self

employed engineer, doctor, architect, chartered accountant, B- $ith minimum 2

years standing.

Salient Features

+oan ,mount

=our personal loan limit $ould be determined by your income and repayment

capacity.

inimumE s.2+,000H4 in metro and urban centres

s./0, 000H4 in ruralHsemi4urban centres

aximumE /2 times 6et onthly Income for salaried individuals and pensioners

sub#ect to a ceiling of s./0 lacs in all centres

(o%uments Re9uired

Important documents to be furnished $hile opening a @ersonal :oan -ccountE

For e-isting $ank %ustomers

@assport si)e photograph

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From salaried individuals

:atest salary slip and


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ligi$ility

=ou are eligible if you areE

,. -n individual $ho isOa. -n 5mployee or

b. - @rofessional, self4employed or an income tax assesse or

c. 5ngaged in agricultural and allied activities.

B. =our 6et onthly Income !salaried" is in excess of s./2,000H4 or 6et -nnual

Income !others" is in excess of s./,%0,000H4.

The income of the spouse may be added if heHshe is a co4borro$er or a guarantor.

C. aximum age limitE *0 years.

Salient Features

+oan ,mount

MinimumE s.2%, 000H4

Ma-imumE s./ crore. The amount is decided by the follo$ing calculationE

2+ times the net monthly income of salaried persons !6et of all deductions

including T9S" 3

2 times the net annual income of others !income as per latest IT return less

taxes payable"

Margin

;e $ill finance upto '%( of the market value of your property.

Interest

Term :oan 0.'%( above SB-. i.e./.00( p.a.


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Repayment

aximum of *0 euated monthly installments, upto /20 months for salaried

individuals $ith check4off facility. =ou could opt to divert any surplus funds

to$ards prepayment of the loan $ithout attracting any penalty.

Se%urity

-s per banks extant instructions.

+O,) ,:,I)ST SH,RS = (B)T*RS"

ligi$ility

This facility is available to our existing individual customers en#oying a strong

relationship $ith SBI. This loan could be availed either singly or as a #oint account

$ith spouse in ?5ither or Survivor?H ?


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existing shares H debentures. :oan $ill not be sanctioned for !i" speculative

purposes !ii" inter4corporate investments or !iii" acuiring controlling interest in

company H companies.

+oan ,mount=ou can avail of loans up to s 20.00 lacs against your sharesHdebentures.

(o%uments Re9uired

=ou $ill be reuired to submit a declaration indicatingE

9etails of loans availed from other banksH branches for acuiring sharesH

debentures.

9etails of loans availed from other banksH branches against security of

sharesH debentures

Margin

=ou $ill need to provide a margin amount of %0( of the prevailing market pricesof the sharesH non4convertible debentures being offered as security. !The market

prices refer to the prices in the Stock 5xchanges as reported in the 5conomic

Times."

Interest

-t SB-


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To find out the need of the customer and hence formulate the strategy to

level the economy in the society.

o$ the products are helping the customer.

To kno$ the utility of the product.

To find out the need of the customer in 9elhi region and introduce ne$

product or facilitate ne$ service in existing product.

Revie8 of +iterature

In dec 2002 Melissa B/ >a%o$yhad studied about the @roduct F Services offered

bySBI Beyond a Subprime 7risisE The ole of 9elinuency anagement. Theystudied that @ublic investment in and promotion of o$nership and the mortgage

market often relies on three #ustifications to supplement shelter goalsE to build

hold $ealth and economic self4sufficiency, to generate positive social4

psychological states, and to develop stable neighborhoods and communities.

o$nership and mortgage obligations do not inherently further these ob#ectives,

ho$ever, and sometimes undermine them. The most visible triggers of the recent

surge in subprime delinuency have produced calls for emergency foreclosure

avoidance interventions !as $ell as front4end regulatory fixes". ;hatever their

merit, I contend that a system of mortgage delinuency management should be an

enduring component of housing policy.


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3ne function of this brief essay is to identify an existing rough frame$ork for

managing delinuency. :egal scholarship should no longer discuss mortgage

enforcement primarily in terms of foreclosure la$ and instead should include

other debtor4creditor la$s such as bankruptcy, industry loss mitigation efforts,

and third4party interventions such as delinuency counseling. In terms ofanaly)ing this frame$ork, it is tempting to focus on its impact on mortgage credit

cost and access or on the absolute number of homes temporarily saved, but my

proposed analysis is based on $hether the system honors and furthers the goals of

$ealth building, positive social psychological states, and community

development. Because those ends are not inexorably linked to o$nership

generally or o$ning a particular home, a system of delinuency management that

honors these ob#ectives should strive to provide fair, transparent, humane, and

predictable strategies for home exit as $ell as for home retention. -lthough more

empirical research is needed, this essay starts the process of analy)ing mortgage

delinuency management tools in the proposed fashion.

O$?e%tives

Summer Internship @ro#ect gives a practical exposure and helps in acuiring the

on road skills.

To find out the reasons for using of -dvance @roduct from SBI.

To find out the services that other bank given to their customer.

To generate the leads through the survey.

To sort out the prospective leads from the data I have collected through the

survey.

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To build the relationship $ith the customers and to follo$ up them, make

sure that they are satisfied $ith the product.

To maintain good relationship $ith the corporate employees.

To get more references from the customers and generate ne$ leads by

follo$ing a chain process.

To place SBI -dvance @roduct ahead of the competitors.

To find out the customer a$areness on booming -dvance @roduct market

and to find out the using patterns of the people

To make the customer a$are of the benefits of the product and convince

him to go for SBI -dvance @roduct.

S%ope of Study

The geographical scope of the study is restricted to 9elhi only $ith sample si)e of

200people.

-ll the analysis and suggestions are based on the analysis of the both primary and

secondary data.

Therefore the scope of the study revolves around the follo$ing aspectsE4

7onsumer perception to$ards -dvance @roduct

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7onsumer a$areness about -dvance @roduct scheme and its benefit.

-$are the Bank about the customer problems, especially in case of

automobile sector.

Resear%! met!odology

esearch methodology is a methodology for collecting all sorts of information F

data pertaining to the sub#ect in uestion. The ob#ective is to examine all the issues

involved F conduct situational analysis. The methodology includes the overall

research design, sampling procedure F field$ork done F finally the analysis

procedure. The methodology used in the study consistent of sample survey using

both primary F secondary data. The primary data has been collected $ith the help

of uestionnaire as $ell as personal observation book, maga)ineO #ournals have

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been referred for secondary data. The uestionnaire has been drafted F presented

by the researcher himself.

Sample Si@e"

Sample of 200 people $as taken into study, and their data $as collected. 9elhi

egion

Sampling Te%!ni9ue"

To study the @ro#ect, a Simple andom Sampling techniue is used.

(ata Colle%tion"

7ollection of data is done by

Secondary 9ata F through

Puestionnaire

i.e., @rimary data $as collected through Puestionnaire.

(ata ,nalysis"

-fter data collection, IAm able to analy)e customerAs vie$s, ideas and opinions

related to -dvance @roduct and about SBI -dvance @roduct and from this, SBI

$ill come to kno$ the customer reuirements.

(ata Interpretation"

Interpretation of data is done by using statistical tools like @ie diagrams, Bar

graphs, and also using uantitative techniues !by using these techniues"

accurate information is obtained.29


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Classifi%ation A ta$ulation of data"

The data thus collected $ere classified according to the

categories, counting sheets F the summary tables $ere

prepared. The resultant tables $ere one dimensional, t$o

dimensional.

Statisti%al tools used for analysis"

3ut of the total respondents, the respondents $ho respondedlogically $ere taken into account $hile going into statistical

details F analysis of data. The tools that have been used for

analy)ing data F inference dra$ing are mainly statistical tools

like percentage, ranking, averages, etc.

-s per uestionnaire and market surveys I have find out different responses from

different people. -ccording to their responses I analy)e the findings and dra$

certain remarks.

+imitation"

This study also includes some limitations $hich have been

discussed as follo$sE

Though everyone used to be very co4operative but every detail $as

unable to be disclosed to me as the officials has to maintain secrets

of the company.

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It is difficult to cover all the function of the company.

Because of the limited time period, the survey $ork $as conducted

in the 9elhi region and the sample si)e $as taken as 200

respondents only.

Some of the persons $ere not so responsive.

Some respondents $ere reluctant to divulge personal information

$hich can affect the validity of all responses.

@ossibility of error in data collection because many of investors

may have not given actual ans$ers of my uestionnaire.

:R,PHIC,+ RPRS)T,TIO) OF (,T,

./ On 8!i%! $ank you depend for your regular transa%tion

SBI 60 % (120)

ICICI 33 % (66)

HDFC 5% (10)

OTHER 2% (4)

TOTAL NO. OF PEOPLE 200

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60%

33%

5%2%

RESPONSES OF PEOPLE IN %

SBI

Interpretation

It has been observed that approximately *0( correspondents are using the service

of SBI for their daily transaction, around ( of people are using I7I7I Bank for

their transaction and only %( F 2( of people are using 9


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Interpretation


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NO 5% (10)


Interpretation

It is clear that most of the people have the idea about the advance product of SBI.

-lmost all the &%( people $ho have the idea about the advance product are the

user of SBI product F service.

2/ '!i%! $ank you prefer for taking loans

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85%

12%

2%

1%S!"$'

SBI

ICICI

Interpretation

-ccording to my sample si)e %( of people prefer SBI for loan product, but some

people prefer I7I7I, 9


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$ith that bank F it is easier for them to get loan from their bank F it easier for

them to pay the interest because it is less as compare to other bank because they

are the employee of that bank.

4/ If you prefer SBI for taking loan t!an 8!at influen%e you to take +oan

from SBI

ost of the people said that they prefer SBI for taking loan because of the

transparency and the lo$est interest rate for any kind of loan product. -nd it is

easy to get loan from SBI as compare to other bank because less paper $ork is

reuire and as it is the largest govt. bank in India and having partnership $ith BI

!eserve Bank of India" and other association, it is easier for SBI to give loan to

people $ith a longer repayment period.

/D '!i%! loan produ%t of SBI you !ave used

36

HOE LOAN 47% (84)

EDCATIONAL LOAN 20% (36)

CAR LOAN 15% (27)

PERSONAL LOAN 10% (18)

OTHER 8% (14)



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Interpretation


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Interpretation


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0%

10%

20%

30%

40%

50%

LESS PAPER

WORK

ATTRACTIVE

INTEREST RATE

TRANSPARENCY SIMPLE & FAST

PROCESSING

LONGER

REPAYMENT

PERIO

FEAT)RES LIE BY C)STO(ER

Interpretation

ost of the people like the attractive interest rate F longer repayment period. ItAs

easier for people to repay the $hole loan amount $ith its interest $ith lo$ interestrate and $ith longer repayment period.

Re%ommendation

7ustomer a$areness programme is reuired so that more people should

attract to$ards advance product.

If there are any kind of hidden charges than that must disclose to customer

before giving loan to them.

SBI must take some steps so that customers can get their loan in time. :ike

phone verification by customer care that one customer is got their loan on

time or not .It must be before a certain date so necessary steps can be taken.

SBI should more concern about physical verification rather than phone

verification so it $ill avoid fraud or cheating.

-dvance product selling agents must not give any type of $rong

information regarding advance product.

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ost of the customers at 9elhi prefer to take loan from SBI.

-pproximately +( of advance product users said that the service of SBI in

advance product is excellent.

- response from customer care is so clear F good.

any customers have no time to call customer care so that they are not able

to kno$ about the service F features of SBI advance product.

ost customers are shifted from other bankAs advance product to SBI

because of hidden charges, high interest rate, less repayment period.

8overnment employees are more concern than private employees for

advance product.

Con%lusion


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To be the largest advance product issuer, SBI should focus on4

:aunch Innovative product

7ustomi)ed advance products

Better customer services


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customer satisfaction at sbi

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