introduction of india_1

8/14/2019 Introduction of India_1

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STATE BANK OF INDIA

INTRODUCTION OF INDIAS FIRST

NATIONALISED BANK

The state bank of India has an unbroken tradition of more

than 200 years of banking. In fact the 200th anniversary celebration

has commenced in June 2005. Its history is traced back to bank of

Calcutta (1806), which received its character as bank of Bengal in

1809. There were two other banks, bank of Bombay (1840) and

bank of madras (1843). These three banks were known as

presidency banks. The presidency banks were authorized to

conduct government business and also issue currency note.

In 1921, the presidency banks were amalgated to form the

imperial bank of India (70 branches in 1921). The imperial bank

was conducting government business exclusively. R.B.I. (reserve bank of India) was established in 1935 pursuant to the

recommendations of the Hilton young commission. After the

formation of R.B.I., the imperial bank acted as agent in doing

government business and maintaining currency chest and small

coin deposit. R.B.I. was first established as a private bank in 1935

and nationalized later in 1949.

Todays State Bank of India doing there business through its

10,000nd branches, which makes them biggest banks in terms of

assets. Bank also open there business centers in over 83 countries


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STATE BANK OF INDIA

like Malaysia, USA, UK and UAE. The current chairman of State

bank of India is Mr. Om Prakash Bhatt.

The S.B.I. was established with the objective of taking

banking to the interior and remote parts of India.

Later under the state bank of India (subsidiary bank) act 1959

the former state associated banks were taken over by the S.B.I. as

its subsidiaries (currency designated as associate banks).

Presently there are 7 associate banks and one banking subsidiary,

S.B.I. commercial and international banks Ltd.

The 7 associated banks are

S.B.T. :- state bank of Travancore

S.B.M. :- state bank of Mysore

S.B.H. :- state bank of Hyderabad

S.B.I.:- state bank of Indore

S.B.S. :- state bank of Saurashtra

S.B.B.J. :- state bank of Bikaner and Jaipur

S.B.P. :- state bank of Patiala

Main functions of State Bank of India are:-

To accept deposits

To give advances


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STATE BANK OF INDIA

Collect revenue on behalf of government in the form of

various channels.

Collection of advance tax from businessman

Collection of Tax Deduction at Source (TDS)

Some special schemes for students such as education loan,

opening of account, student debit card.

Provide best returns on long term deposits which ranges from

9% to 15%.


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STATE BANK OF INDIA

STATE BANK OF INDIAS

(VAZIRA BRANCH)

This branch is under the B.P.R. (business process re-

engineering). There have been fundamental changes in

competition, technology and customer expectations. Also there

have been many changes in the delivery systems of product and

services of the bank. But the business process (i.e. tasks,

procedures, documentation etc.) have remained the same. B.P.R. is

the fundamental re-thinking and radical redesign of business

processes to bring about dramatic improvement in performance.

At the Vazira branch, there are around 8 to 10 single window

operators and 3 to 4 back office assistants. At the door immediately

after entering, a customer is welcomed by a Grahak Mitra. All the

preliminary help is given by Grahak Mitra and customer is guided

to proper division or officer. There are two C.R.O.s (customer

relation officer) and one C.R.E. (customer relation executive). The

C.R.E. is especially appointed for personal segment high value

loans and advances. Other C.R.O.s also deal with advances and

deposits including opening of a saving bank account. An account is

opened in 15 minutes if all documents are in order and cheque

book, pass book, A.T.M. cards is issued to the customer


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STATE BANK OF INDIA

immediately. This branch is headed by chief manager. One service

manager is there to handle the daily routine of the branch.

Branch has various deposit and advances scheme of S.B.I..

The following products are sold at S.B.I. Vazira branch

The SBI Vazira branch is herein following various schemes

for customers:-

Home Loan

Car loan

Education loan

Mortgage Loan

SBI Saral

NRI Housing Loan

Rent Plus

This year bank is celebrating diamond jubilee. So, bank has

given SBI diamond jubilee freedom offer. The special features of

the scheme are

Interest rates reduced by 0.5%

Processing fees reduced by %

Reduced margins on home loans

This scheme is applicable to:

1) SBI Student loan 2) Car Loan

3) SBI Saral 4) Mortgage Loan


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STATE BANK OF INDIA

Home Loan:-

Purpose:-

Purchase/ Construction of House/ Flat

Purchase of a plot of land for construction of House

Extension/ repair/ renovation/ alteration of an existing House/

Flat

Purchase of Furnishings and Consumer Durables as a part of

the project cost. Takeover of an existing loan from other Banks / Housing

Finance Companies.


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STATE BANK OF INDIA

Eligibility:-

Individuals above 18 years of age, with a steady source of

income.

Loan Amount:-

Based on

a) EMI / NMI Ratio:-

NAI EMI/NMI

Upto 2 Lacs 40%

Upto 2-5 Lacs 50%

Above 5 Lacs 55%

b) Loan to Value Ratio:-

Loan upto 1 crore - 20%

Above 1 crore - 25%

Security:-

Equitable mortgage of the property

Rate of Interest: -

At most competitive rates on daily reducing balance.

Processing Fee:-

0.50 %( Maximum Rs. 10, 000)

Car Loan:-


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STATE BANK OF INDIA

Purpose:-

You can take finance for:

A new car, jeep or Multi Utility Vehicles (MUVs) A used car / jeep (not more than 5 years old). (Any make or

model).

Take over of existing loan from other Bank/Financial

institution (Conditions apply)

Eligibility:-

To avail an SBI Car Loan, you should be:

Individual between the ages of 21-65 years of age.


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STATE BANK OF INDIA

A Permanent employee of State / Central Government, Public

Sector Undertaking, Private company or a reputed

establishment or

A Professionals or self-employed individual who is an

income tax assessee or

A Person engaged in agriculture and allied activities.

Net Annual Income Rs. 100,000/- and above.

Loan Amount: -

For salaried person : 30 times NMI

For others : 2.5 times NAI

New vehicles : No ceiling

Old vehicles : Upto Rs. 15 Lacs

Margin: -15 %.

Rate of Interest: -

As applicable from time to time

Repayment:

Upto 84 months*, till the age of 70 years

Type of Loan:-


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STATE BANK OF INDIA

1. Term Loan

2. Overdraft - a) For New vehicles only

b) Minimum loan amount: Rs. 3 lacs.

Documents Required:-

You would need to submit the following documents along

with the completed application form if you are an existing SBI

account holder:

1. Statement of Bank account of the borrower for last 12

months.

2. 2 passport size photographs of borrower(s).

3. Signature identification from bankers of borrower(s).

4. A copy of passport /voters ID card/PAN card.

5. Proof of residence.6. Latest salary-slip showing all deductions

7. I.T. Returns/Form 16: 2 years for salaried employees and 3

years for professional/self-employed/businessmen duly

accepted by the ITO wherever applicable to be submitted.

8. Proof of official address for non-salaried individuals.

Security: -

As per bank's extant instructions.

Educational Loan: -


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STATE BANK OF INDIA

Eligible Courses: -

All courses having employment prospects are eligible.

Graduation courses/ Post graduation courses/ Professional

courses

Other courses approved by UGC/Government/AICTE etc.

Expenses Considered For Loan: -


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STATE BANK OF INDIA

All fees payable to college / hostel including

InterestRates: -

(With effect from 27th June 2008)

For loans up to Rs.4 lacs - 0.50% below SBAR i.e.12.25% p.a.

Floating

For loans above Rs. 4 lacs and up to Rs.7.50 lacs - 1.00% above

SBAR 13.75 % Floating

For loans above Rs.7.50 lacs - SBAR - 12.75% p.a. Floating

Documentation Required: -

Completed Education Loan Application Form.

Mark sheets of last qualifying examination

Proof of admission scholarship, studentship etc

Schedule of expenses for the specified course

2 passport size photographs

Borrower's Bank account statement for the last six months

Income tax assessment order, of last 2 years

Brief statement of assets and liabilities, of the Co-borrower

Proof of Income (i.e. Salary slips/ Form 16 etc)

Mortgage Loan: -


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STATE BANK OF INDIA

Purpose: -

General purpose is loan against mortgage of immovable

property.

Eligibility: -

Employees / Purpose / Self employed IT assesses /

Agriculturists & person engaged in allied activities.

Loan Amount: -

Minimum : Rs 25,000/-


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STATE BANK OF INDIA

Maximum : Rs 1Cr.

75 % of the market value of the Property subject to

EMI/NMI


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STATE BANK OF INDIA

Purpose: -

Construction of house / purchase of a flat / house

Purchase of a plot for construction or a house / flat

Purchase of an already constructed house / flat

Repair / renovation / additions to the existing house

SOME SPECIAL SCHEMES OFFER IN STATE BANK OF

INDIAS VAZIRA BRANCH


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STATE BANK OF INDIA

1) CORE BANKING SOLUTION (CBS)

State bank of India offers the most exciting range of

banking services with the high technology Core Banking

Solution already implemented to cover 80% of our business

at over 6243 branches at over 1900 centers.

Core banking provides following schemes:-

Corporate Salary Package :

Draw your Salary

Free Internet Banking

Free ATM cum Debit Card

Special Privileges

Free Remittances & CollectionsMulti City Cheques available

Core Power :

All saving bank and current account holders can now

transact from any CBS branch Cash withdrawal, deposit of

SBI Cheques, Clearing Cheques, outstation Cheques*

Transfer of funds/ remittances to accounts in other CBS

branches.

SMS Alerts on every transaction.


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STATE BANK OF INDIA

Deposits:

SBI has a wide range of deposit products to suit every

customer, including:

1) Saving and Current Account

2) Term Deposit & Special Term Deposit

3) SBI smart and SBI super saver

4) Money Box and Recurring Deposits

2) State Bank ATMs:-

Over 7200 State Bank ATMs

Use of over 4000 ATMs of 13 other banks at nominal cost

Book Railway tickets, pay fees, make donations etc.

International ATM cum Debit Card available in many

variants including Gold Visa and Gold MasterCard.

3) Internet Banking:

Free Internet Banking

Corporate internet banking available for companies

Directly pay salaries, vendors, etc. and receive payments

instantaneously*

Pay Bills Online


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STATE BANK OF INDIA

Book rail and Air Tickets online*

Make Donations to trusts, temples, etc*

View all accounts including deposit, loan and demate

accounts online

4) Multi City Cheques:-

Available to both saving and current account holders payable

anywhere in India

Free up to Rs.50, 000 per day for SB A/cs

Valid at over 1900 centers where there is at least one CBS

branch.

EFFORTS TAKEN BY THE BANK IN MAINTAINING

CUSTOMER RELATIONSHIP MANAGEMENT


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STATE BANK OF INDIA

Bank has appointed 3 persons to keep relationship with

customer.

1) Grahak Mitra

2) CRO

3) Relationship Manager.

1) Grahak Mitra: -

The position of Gahak Mitra is exactly in front of premises

is greeted by the Grahak Mitra. Preliminary help or information

is given by the Grahak Mitra. The Grahak Mitra is having

enquiry terminal with him. He gives transaction enquiry to the

customer. He distributed ATMs forms. Gives information

regarding banks alternate channel to the customer for example

he gives information regarding ATM Cards, SBI Cards, Internet

Banking Facility, Mobile Banking Facility, Tele Banking

Facility and other various schemes. He has customer of filling

of account, Opening Form, Paying Slip, Withdrawal Slip etc.

Thus, he maintains good relationship with customer.

2) CRO(Customer Relationship Manager): -

The Customer Relationship Office gives immediately

passbook, ATM Card & ChequeBook to the customer. He


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canvases regarding various facilities given by the bank in the

field of Housing Loan, Car Loan, Personal Loan and Doctor

Plus Scheme, etc. to the customer. Since the customer is getting

quick service in account opening, the customer becomes happy

& satisfied and maintains good relation with the bank. CRO also

gives the bank. CRO also gives Internet connection to the

customer.

3) Relationship Manager: -

This post is special for high value customer. The

relationship manager attain around to hundred customers in a

day. He give personal service to high value customers. The high

sits in front of the relationship manager arranges all his work

sitting at one place. The relation manager telephones high value

customer for their banking needs and provide services at the

customer doorsteps. Sometimes cash withdrawal is sent to the

customer at his home.

Bank is having other channels like SBI Cards, Home Loan

centers marketing department which contact customer for their

banking need. Thus, the bank keeps or maintains customer

relation management.CONCLUSION