project state bank of india summer training

7/29/2019 Project State Bank of India Summer Training

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Preface

The Project work is field which uses tools and techniques to transfer

subjectivity in the environment into objectives, also the findings of the

research, when applied show results, which can be measured and

evaluated so there is feedback this is what makes it a dynamic activity.

This survey is an analytical study of a different facts of the product. Thefocus is given on the Brand profile. This project entitled Summer Training

of STATE BANK OF INDIA, is for the partial fulfillment of B.B.A.

(Hons) Degree 15THBatch.

The idea behind this project is to give practical knowledge and to

make them to face real life situation. The project survey is commonly used

for the collection from the respondents through questionnaire. In this

method statistical techniques have been used systematically. This project

survey is not only with my own efforts but also that of others.

RAJEEV TUNDELE

BBA (HONS.)5th SEM

15THBATCH


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ACKNOWLEDGEMENT

I would like to whole hearty thank and express my sincere gratitude to

Prof. Y.S. Thakur Head of the Department of Faculty of Management

Studies Dr. Hari Singh Gour Central University, Sagar for suggesting me

this problem and for giving an insight in dealing with the subject

I am highly obliged to Mr. M.K. Sahu Manager State Bank of Indian,

Branch Gujrati Bazar Sagar. Miss Shakuntala Yadav Lecturer, Mrs JyotiPandey, Mr. Ankur Randhelia, , Miss Mayuri Jain, Dr. Shree Bhagwat, Mr.

Himanshu Katare Mr. Ankur Gautam, Miss Devagya Shrivastava, , Mr.

Girbal singh Lodhi, and All Faculty member for guiding me in various

espects of this project. I express my gratitude to all the customers who very

kindly discussed various aspects of this study and provided useful

suggestions for discussing various problems.

Lastly, I Must express my gratitude to all the elders of the family and

citizen of the city who blessed me in course of discussion. I also extend my

sincere thanks to my family and my friends for their encouragement and

support.

RAJEEV TUNDELE

BBA (HONS.)5th SEM

15THBATCH


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Dr. Hari Singh Gour Vishwvidhyalaya, Sagar

CERTIFICATE

This to certify that MR. KRISHNA KANT SAHU Student of

B.B.A. (Hons) 15th Batch, Department of Business Management Dr. Hari

Singh Gour Central University, Sagar (M.P.) Has diligently worked on

the Project Report of the Summer Training of STATE BANK OF INDIA.

He has done this Work under My Guidance and Supervision. This project

work is original and not submitted earlier for the award of any degree or

associate ship of any other University.

During this study he made meticulous efforts for its completion. I

wish him all the best in this sincere endeavors for a bright and successfulfuture.

Signature of the Signature of the Signature of the

Supervisor Head of the Department Examiner

DECLARATION


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I hereby declare that the project work entitled Summer

Training STATE BANK OF INDIA submitted to the Department of

Business Management Dr. Hari Singh Gour Central University, Sagar

(M.P.), is a record of an original work done by me under the guidance of

Mr. M.K. Sahu Branch Manger (SBI) Sagar Branch. I also ensure that this

work done by me is purely original and is my own creativity.

PLACE: DATE:

KRISHNA KANT SAHU

BBA (HONS.)5th SEM

15THBATCH

Enrollment no.: Y1018050013

CONTENTS

Certificate of Summer Training

Preface


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Acknowledgement

Declaration

Certificate

Chapter 1

1.1 Introduction to Banking

1.2 Introduction to State Bank of India

1.3 State Bank Today

1.4 State Bank Group

1.5 Retail Banking

1.6 Vision, Mission and Values

Chapter 2 RESEARCH METHODOLOGY

Chapter 3 Interpretation of PIE and BAR chart.

Chapter 4

Conclusions

3.1 Conclusion/Findings

Chapter 5 Recommendations & Suggestion

Questionnaire

References


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Introduction to Banking

Customers are broadly classified into two:

Personal Customers: Individuals having accounts singly or jointly

(including minors)

Non Personal Customers: Non individual customers like Proprietary

concerns, Partnerships, Companies, Trusts, Associations, Clubs,

Societies, Institutions, Govt. Departments, NGOs, SHG etc.

Accounts are broadly classified into two:

Customer accounts (external accounts) : Deposit accounts (Savings

Bank, Current Account etc), Loan Accounts (Demand Loan, Term

Loan etc) and Contingent accounts (Bank Guarantee etc)

Office accounts. (Internal accounts): Cash Balance accounts, fixedassets account, Drafts account, Sundry Deposit account, Interest

account etc.

Basic Deposits Account:

Savings Bank : Running account for saving with restriction in

number of withdrawal

Current Account: Running account without restriction on number of

withdrawals

Term Deposit : Deposit of an amount for a fixed period where

interest is paid monthly/Quarterly

Special Term Deposit : Deposit of an amount for a fixed period

where interest is compounded

(Capitalized) and paid on maturity.


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Recurring Deposit: Regular (Monthly) deposit of a fixed amount for

a fixed period.

Types of Loan Account:

Overdraft

Demand Loan

Term Loan

Cash Credit

Overdraft:

A Current account when permitted to overdraw (allowing withdrawal

more than deposited or without deposits ) becomes an overdraft

account

Can be operated by cheque, ATM, INB

A type of advance of temporary nature/ to valued clients sometimes

against Term Deposit, NSC etc.

A running account where further withdrawals (debits) can be

permitted as and when deposits (credits) come.

Demand Loan:

Basically an advance payable on demand.

Payment in installments also generally allowed.

Given against Bank deposits, NSCs, Insurance policies

Gold loans and Pension Loans are given as Demand loans

Only one Debit allowed for disbursement. Cannot be operated by

cheque & ATM.

Term Loan:

Loan payable as per pre-determined installments over a fixed term.

Extended for acquisition of assets like house, car, land, building, Plant

& Machinery etc.

Installments are to be paid out of the income of the person in case of

Personal Segment loans


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Installments are to be paid out of the income of the activity financed

in case of non-personal segment loans.

Cash Credit:

An advance facility for financing the working capital needs of

commercial activities.

A running account on the lines of Overdraft.

An account where all the receipts and payments of the activity on

account of day-to-day operations are expected to be reflected.

Extended against the stocks and receivables of the unit. (Stocks: raw

materials, semi finished goods, finished goods etc, Receivable means

money to be received towards sales).

Security and Margin:

The physical or financial asset for / against which the advance is made

is referred as security. A car is a security for which a car loan is given.

Assets acquired out of bank finance is called primary security. Any

additional security offered by the borrower is called collateral.However, in CBS parlance all securities are referred as collaterals.

The amount contributed by the borrower to the project cost / the

percentage value of the assets owned by him is referred as margin.

Charge:

An asset offered to the creditor (who lends the money) becomes asecurity only if a legally enforceable interest is created in his favour.

This process is called the creation of Charge.

Lien, Pledge, Hypothecation and Mortgage are different types of

charges applicable to different types of securities.


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Transaction:

There are three types of transactions:

Cash: Where receipt payment of physical cash is involved

Transfer: Where funds are transferred from one account to another

account without

Clearing: Transfer transactions where funds are exchanged with other

banks through clearing

Introduction to State Bank of India:

Evolution of SBI: Born as Bank of INDIA (2 June 1806).

Renamed Bank of Bengal (2 January 1809).

Bank of Bombay (15 April 1840).

Bank of Madras (1 July 1843).

All three were called Presidency Banks.

Amalgamated as Imperial Bank of India on 27 January 1921.

Birth of SBI:

An Act was passed in Parliament in May 1955 and the State Bank of

India was constituted on 1 July 1955.

State Bank of India (Subsidiary Banks) Act was passed in 1959,

enabling the State Bank of India to take over eight former State-

associated banks as its subsidiaries (later named Associates).

State Bank of India was thus born with a new sense of social purpose

with 480 offices, 3 Local Head Offices and a Central Office.

History of SBI:

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 INDIA in

INDIA, on 2 June 1806. The bank was redesigned as the Bank of Bengal,

three years later, on 2nd January 1809. It was the first ever joint-stock bank of


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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, includingthe Imperial Bank of India, confined their services to the urban sector.

Moreover, they were not equipped to respond to the growing needs of theeconomic 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 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 mererepositories 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.


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STATE BANK OF INDIA

INTRODUCTION :

IFSC Code of STATE BANK OF INDIA GUJRATI-BAZAR-

SAGAR branch - SAGAR. Contact phone number and

address

Bank

State

District

Branch

Bank Name : STATE BANK OF INDIA

State Name : MADHYA PRADESH

District Name : SAGAR

Branch : GUJRATI BAZAR SAGAR

IFSC Code : SBI0030179City : SAGAR

Address : 177, NEAR MANOHAR TALKIES ,GUJRATI BAZAR

ContactNumber :

07582-223865,229881

WebSite : WWW.STATEBANKOFINDIA.COM
https://www.statebankofindia.com/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/http://www.ifsccodeonline.com/https://www.statebankofindia.com/


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Nearest STATE BANK OF INDIA branches in SAGAR

AGASOD BADA-BAZAR-SAGAR

BANDA BANDRI

BINA CIVIL-LINES-SAUGORDEORI-(SAUGOR) DHANA-SAGAR

GARHAKOTA GOPALGANJ-SAGAR

GUJRATI-BAZAR-SAGAR JAISINAGAR

JAORA KHURAI

MAKRONIA-SAGAR MANDI-BAMORA

MEDICAL-COLLEGE-BRANCH-SAGAR MRC-SAGAR

RAHATGARH REHLI

SAGAR-MAIN SAUGOR-UNIVERSITY-SAGAR

SEMADHANA SHAHGARH

SIRCHOPI-(BPSCL) SME-SAUGORSTATION-ROAD-BINA
http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/AGASOD/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/BADA-BAZAR-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/BADA-BAZAR-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/BANDA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/BANDRI/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/BINA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/CIVIL-LINES-SAUGOR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/CIVIL-LINES-SAUGOR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/DEORI-(SAUGOR)/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/DHANA-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/GARHAKOTA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/GOPALGANJ-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/GOPALGANJ-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/GUJRATI-BAZAR-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/JAISINAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/JAORA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/KHURAI/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/MAKRONIA-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/MANDI-BAMORA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/MANDI-BAMORA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/MEDICAL-COLLEGE-BRANCH-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/MRC-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/MRC-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/RAHATGARH/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/REHLI/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/REHLI/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/SAGAR-MAIN/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/SAUGOR-UNIVERSITY-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/SEMADHANA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/SHAHGARH/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/SIRCHOPI-(BPSCL)/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/SME-SAUGOR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/STATION-ROAD-BINA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/AGASOD/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/BADA-BAZAR-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/BANDA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/BANDRI/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/BINA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/CIVIL-LINES-SAUGOR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/DEORI-(SAUGOR)/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/DHANA-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/GARHAKOTA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/GOPALGANJ-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/GUJRATI-BAZAR-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/JAISINAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/JAORA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/KHURAI/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/MAKRONIA-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/MANDI-BAMORA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/MEDICAL-COLLEGE-BRANCH-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/MRC-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/RAHATGARH/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/REHLI/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/SAGAR-MAIN/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/SAUGOR-UNIVERSITY-SAGAR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/SEMADHANA/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/SHAHGARH/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/SIRCHOPI-(BPSCL)/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/SME-SAUGOR/http://www.ifsccodeonline.com/IFSC-CODE-STATE-BANK-OF-INDIA/MADHYA-PRADESH/SAGAR/STATION-ROAD-BINA/


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State Bank Today

(Rupees in Crores)

BALANCE SHEET AS AT 31ST MARCH 2009

Balance Sheet size 7,21,526

Aggregate Deposits 5,37,404

Total Advances 4,16,768

Capital Funds 69,762.64

Net Profit 6,729.12

Paid-up Capital 631.47

(In percentage terms)

BALANCE SHEET AS AT 31ST MARCH 2009

Yield on Advances (Domestic) 9.90

Cost of Deposits (Domestic) 5.59

Net Interest Margin 3.07

Gross NPA Ratio 3.04

Net NPA Ratio 1.78

Capital Adequacy Ratio 13.47

Return on Average Assets 1.01

AS AT 31ST MARCH 2009

No. of Branches 10,186

No. of Foreign Offices 84

No. of Branches on CBS All Branches

No. of employees 1,79,205

No. of ATMs 9,000

The Bank handles almost the entire gamut of financial services. It is a

financial supermarket.


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The Bank extends banking services to:

Corporate Sector

SMEs

Rural sector, especially Agriculture and

allied activities

Retail sector, i.e., Personal Segment

The Bank has designed both Deposits as well as Advances products

for specific segments as per their requirements.

The loans range from Rs.100/- to say, Rs. 10,000 crores.

STATE BANK GROUP:


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ASSOCIATE BANKS

State Bank of India has the following 6 Associate Banks (ABs) with

controlling interest ranging from 75% to 100%:

State Bank of Bikaner and Jaipur (SBBJ)

State Bank of Hyderabad (SBH)

State Bank of INDORE (SBIN)

State Bank of Mysore (SBM)

State Bank of Patiala (SBP)

State Bank of Travancore (SBT)

The six ABs have a combined network of 4596 branches in India,

which are fully computerized and on CBS.

The ABs has 1070 ATMs, which are networked with SBI ATMs,

providing value added services to clientele.

FOREIGN BANKING SUBSIDIARIES

State Bank of India has the following Foreign Banking Subsidiaries:

State Bank of India (Canada)

SBI International (Mauritius) Ltd.

State Bank of India (California)

Indian Ocean International Bank Ltd.

Commercial Bank of India LLC, Moscow

PT Bank Indo Monex

NON-BANKING SUBSIDIARIES / JOINT VENTURES


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State Bank of India has the following Non-Banking Subsidiaries /

Joint Ventures:

SBI Capital Markets Ltd. (SBICAP)

SBICAP Securities Ltd. (SSL)

SBICAPS Ventures Ltd. (SVL)

SBICAP (UK) Ltd.

SBI Funds Management Pvt. Ltd. (SBIFMPL)

SBI Factors & Commercial Services Pvt. Ltd.

(SBIFACTORS)

SBI DFHI Ltd.

SBI Cards & Payment Services Pvt. Ltd. (SBICSPL)

SBI Life Insurance Company Ltd. (SBILIFE)

Global Trade Finance Ltd. (GTFL) SBI Mutual Funds Trustee Company Pvt. Ltd.

OTHERS

In addition to these, there are other Subsidiaries / Jointly Controlled

Entities such as:

SBI Commercial and International Bank Ltd. SBICAP (UK) Ltd.

SBI Funds Management (International) Ltd.

GE Capital Business Process Mgmt. Services Pvt.

Ltd.

C-Edge Technologies Ltd.

All these together constitute this mammoth organization the

STATE BANK.


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RETAIL BANKING

Retail banking refers to banking in which banking institutions execute

transactions directly with consumers, rather than corporations or other banks.

Services offered include: savings and checking accounts, mortgages,

personal loans, debit cards, credit cards, and so forth or it is a typicalmass-market banking where individual customers uselocal branches of larger commercial banks.

Retail Banking has wider connotation and is not the same as that of retail

lending. Retail Banking refers to the efforts of the bankers to reach up to the

customers on both fronts of the balance sheet i.e., Liabilities side as well as

Assets side. Under the liabilities side, we have deposits. Under the assets

side, we have credit schemes of the various banks. The job of the banker hasbecome very difficult in this segment too. Bankers today are offering various

sops to attract the potential customers.

Defining retail banking activity :

Retail banking activity is commonly understood to comprise:

banking services for consumers (individuals/private households) and

banking services for small- and medium-sized enterprises (SMEs).

The delineation of each of these two segments, however, is not standardized

by, for instance a nomenclature for central banks statistics or other official

databases. The inclusion or exclusion of customer categories from these

segments depends, to a large extent, on cultural habits, market developments

or the individual business strategies of banks. In some countries or

specialized banks, for example, services for wealthy individuals and

households fall under the so-called segment of private banking. Moreover,

whether a certain size category of SMEs belongs to the segment of retail

banking or the segment of corporate banking varies from bank to bank.In order to reduce this complexity, the Authority has used the following

definitions for the purposes of the sector inquiry:
http://en.wikipedia.org/wiki/Banking_institutionhttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Checking_accounthttp://en.wikipedia.org/wiki/Mortgagehttp://en.wikipedia.org/wiki/Personal_loanhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://dictionary.babylon.com/bank#!!ARV6FUJ2JPhttp://dictionary.babylon.com/branch%20(banking)#!!ARV6FUJ2JPhttp://en.wikipedia.org/wiki/Banking_institutionhttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Checking_accounthttp://en.wikipedia.org/wiki/Mortgagehttp://en.wikipedia.org/wiki/Personal_loanhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://dictionary.babylon.com/bank#!!ARV6FUJ2JPhttp://dictionary.babylon.com/branch%20(banking)#!!ARV6FUJ2JP


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Personal banking, i.e. banking products and services for consumersincluding current accounts (and related services such as ATM, direct debit

and credit transfers), sight deposits and other savings accounts, credit

lines/overdrafts (no limits on individual asset size) and consumer loans;

business banking, i.e. banking services for enterprises up to a maximumturnover of EUR 10 million annually and including services such as currentaccounts, term loans and credit lines. This report, following industry and

literary usage, will also use the term SME banking or SME customers for

this sub-segment.

In carrying out the inquiry and, for instance, addressing comprehensive

questionnaires to banks in the EFTA States, the Authority has not applied a

rigid definition within these general parameters. This approach has allowed

for individually flexible definitions, for example by accepting the banks

own definition of SME business even where they may be narrower in scope.

Retail banking products and services :

Within the two segments mentioned above, the Authority has focused on the

following main products:

Within the segment of banking services for consumers, three sets of retail

banking products form the core of the sector inquiry:

i)Current accounts the bank account which individuals use formost of their household transactions such as receiving wages or

paying bills.

ii) Deposit accounts an account which individuals use for saving.The accounts provide instant (sight deposits) or time-limited (time

deposits) access to funds.

iii) Consumer term loans a loan account operating for aspecified time period, which is used to fund personal or household

consumption.

In addition to these three sets of products, the sector inquiry has also taken

some account of other retail banking products for individuals such as

payment cards, mortgages and investment funds.

The analysis of banking services for small enterprises (SMEs) focuses on:

i) Current accounts the bank account which SMEs use for thebulk of the payments they make and receive.


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ii) Term loans - a loan account operating for a specified time period,which an SME uses to finance its business expenditure.

iii)Credit lines an open-ended facility which incorporates thecredit element of a loan enabling SMEs to draw down finance

and the flexibility of a current account for making and receivingpayments.

In addition to these three sets of products, the sector inquiry has also taken

some account of other products for SMEs such as leasing (which involves a

banks paying for part or all of the cost of a capital asset for an SME and the

bank then leases this asset to the SME).

Together with the retail banking products specified above, the sector inquiry

also analyses payments systems, since they form the core of money

transmission services in personal and SME banking, and are significant

structures within the retail banking sector as a whole.

Retail banking is much more than as opportunity to addressing dwindling

margins. It is an imperative to preserve profits and market positions. Customers

now have many more personal financial options, a growing credit culture, a

willingness to switch between financial services providers, and a demand for

lower interest rates. As they witness these trends, banks realize that they cannot

remain passive. The new private sector banks are making inroads in the markets

they serve, while competition from non-banks is growing. In respect, older

institutions need to revamp their distribution capabilities, customer

management capabilities, operating culture, compensation system and

operations processing.


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WEB IMPACT ON BANKS RETAIL REVENUES:

For all those gurus whove been predicting that the net will end the business of

said banks, heres a shocker.

Even in the SILICON valley-driven USA, Internet is not expected to have a

major impact in banks retail revenues.

The reason: the absence of a convenient alternative at present to using cash.

According to a report by moodys Investors service, at least in the intermediate

term, the internet is not expected to impact large US banks core profitability or

competitive position.

This is despite the despite business being the simple-most important profit

source for most American retail banks.

The core retail banking business of deposit taking will be sheltered form web-

based competitors and margin shrinkage on this business.

Need for convenient access to physical locations coupled with the advantages

of multiple delivery channels like branch, ATM, telephone and computers,

consumers need to leave money in transactional accounts; customer inertia and

the relatively limited cost savings available to consumers from net banking, are

cited as the main factors supporting its view.

The moodys report, however, cautions that other consumer business such as

residential mortgages, auto loans and credit cards may be more vulnerable to

web-based competitors.


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However, most US banks have thin margins or low market shares in these

businesses mitigating this impact, says the report made available to the

Economic Times.

The rating agency is skeptical of banks ability to generate substantial

incremental revenues from cross-selling financial products to existing

customers via the net.

Banks have to maintain a comprehensive and effective web based capability to

maintain their competitive position, cautions moodys.

The need for customers to take frequent physical receipts, make convenientphysical receipts, make convenient physical delivery of cheques using ATMs,

inhibition towards paying ATM charges for using another banks ATM network

by the consumer and time consuming, difficult and disruptive nature of

switching accounts also contribute to the stickiness of retail deposits.

With low bank fees for individual transactions and relatively small bank

deposits, the opportunity cost in terms of interest income for customers isnot material where the deposits are not large.

Banks offer convenience and choice and the web-based channels of banks have

reported rapid growth in the number of customers by retaining current

customers.

According to moodys a survey indicated that 35 per cent of Internet banking

customer disconnect because they dont find it convenient.

Customers prefer to use a variety of channels to conduct their banking which is

why it remains to be seen whether a business model based solely on internet


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banking will generate adequate returns and sustain long term competition

against conventional banking systems.

The advent of the internet could, however have a powerful effect on banks

acquisition strategies by creating uncertainty about the value of purchasing

large branch networks, the study says.

For some banks, however, the Internet could facilitate an increase in fee income

by generating fees from Internet service arrangements like bill presentment and

clearing.

However, if smart cards or stored value cards or other electronic cash substitute

gain popularity, alternatives could become more attractive to customers.

On the other hand, banks might be able to reduce costs of servicing the retail

customers by moving them over into a paperless environment.

Banks could introduce various incentives to the persuade customers to forego

paper statements for the basic savings account and credit card, says moodys.


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THE RULES HAVE CHANGED

As the 1900s come to their close and we look eagerly towards the new

millennium, a revolution that will change the rules and every thing we have

understood of the retail market, financial products and other services. Economic

boundaries are disappearing, and the global village is a reality where the retail

customer will have a choice in a manner we may have never imagined.

Providers of retail products and services will battle for market and market

share. It is battle that will be fought at different levels and the real winner will

be the customer, who will benefit from increased competition through better

products, distribution, technology, pricing, and post transaction service.

The quality and range of products will expand exponentially convenience of

usage, customization to individual needs, and a host of other user-friendly add-

ons will create a whole new frontier of applications. Companies will have to

innovate and continuously upgrade their products. Anticipation, listening and

responding to your customers needs, will be the buzz-words of this thrust.

Distribution will be the next key benchmark of success. The customer will

demand (and therefore the provider will have to respond) for greater

convenience of access to the product or service and all this at the best cost of

delivery. Re-defined methods, the use of technology specifically the Internet-

and realigned strategies will drive this important criterion of success.

Constraints of location, timing, accessibility etc will all be history. No matter

how brilliant the product you have, your distribution flexibility will be the

customers selection parameter.


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Again, quality of the product and responsive strategies for distribution will also

have a link to price. Efficiencies on this front will be the next item on your

report card. Through innovation in production and delivery and cost reduction

strategies, the price to the customer will have to be at maximum benefit. The

intelligent customer will be ruthless with any price distortions, which as a

consequence of inefficiencies or market exploitation his cost benefit analysis

will not allow for these variables.

Would you prefer a product, which (hopefully) is never expected to need post

sale service or one which offers the best after sale service if required ? Clearly,

the relationship with the customer starts with the transaction, does not and with

it. Organisation we have to give equal importance to cost sale needs of

customers as the pitch made prior to the sale.

Technology will perhaps be the single largest driver of this detail thrust. The

entire strategy will evolve around the absolute ability of the organisation to be

at the cutting as edge of technology. We will have to invest in technology far

ahead of immediate needs and be able to anticipate the future direction at a pace

we are perhaps not used to. Being able to keep abreast, but more importantly,

being able to recognize the immense potential that technology provides at all

stages in the retail chain will be of paramount importance. To leverage, exploit

and link technology to your business will be the greatest challenge of the new

millennium and I am convinced that the retail war will be won and lost on this

one aspect, purely because technology increasingly we influence on the entire

chain in a retail business cycle.

Above all these, I would list attitude towards customer as the single point basis

on determining the winner of the race. Attitude to the customer will influence


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all the areas we have discussed and will ensure excellence in each one of them.

It is an intangible, it is not prescribed in a manual nor is it a quantifiable item in

the balance sheet, but an organizations attitude to the customer will be the basis

determinant of success for any retail operation.

There are interesting and challenging times ahead the future promises a lot

but will also make extraordinary demands. The customer will be the most

important aspect of your business and ultimately the winner of the retail war.

RISK INVOLVED IN RETAIL BUSINESS

There are of course, considerable risks in retail banking. They are :

(a) Databases on credit history are large.

(b) Collection mechanisms are poor.

(c) Investments in technology are large.

(d) Operating efficiency level needs to be very high.

(e) Unlike corporate banking, retail banking involves a large number of

small accounts.

(f) Demands on processing capabilities are higher.

(g) Retail segment is not something you can get into overnight.

(h) The right systems and the right architecture needs to be put in place

first.


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General characteristics of retail banking markets :

The supply side of retail banking markets shows common features that are

typical for banking markets in general. The main difference between retail

banking and other banking fields is the fragmented demand side of the first,comprising individual consumers and small enterprises. In the following, the

characteristics of the supply and demand sides of the market will thus be

discussed separately.

The demand-side of retail banking markets is, as would be expected,

fragmented. Bank customers are often faced with information asymmetry,

i.e. lack of full information about the products and services on offer and

hence cannot make meaningful comparisons. Moreover, there are numerous

barriers to customer mobility (e.g. tying and bundling of products, switching

costs such as closure charges, etc.) that result in a certain reluctance toswitch suppliers, hence making price competition less efficient.


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Regulation of retail banking :

Across the EEA, competition authorities are increasingly turning their

attention to banking markets. Competition authorities in both Iceland and

Norway have dealt with several cases involving retail banking markets overthe years.14 It is by now firmly established that EEA competition law

applies to the banking sector.

One tool of prudential regulation is entry regulation by means of bank

license requirements. This is explainable by the rules on own funds

adequacy. However, the promotion of stability and the avoidance of a

systemic crisis cannot justify all occurring entry restrictions. Such

restrictions may also be used by governments to prevent foreign entries or

takeovers and thus impede effective competition. Another regulatory issue

that also affects market entry concerns specific rules on the ownership andactivity of certain types of banks such as savings banks and co-operative

banks.

The Authority scrutinizes advantages provided to certain financial

institutions by means of State aid control in order to ensure a level

playing field for all market participants and to enhance undistorted

competition. In particular, the Authority ensures that public and private

institutions operate under similar conditions by removing unlimited

state guarantees or fiscal advantages favoring particular banks and by

applying the so-called Market Economy Investor Principle (MEIP).


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Drivers Of Retail Growth:

CHANGING CONSUMER DEMOGRAPHICS

Growing disposable incomes

Youngest population in the world Increasing literacy levels

Higher adaptability to technology

Growing consumerism

Fiscal incentives for home loans

Changing mindsets-willingness to borrow/lend

Desire to improve lifestyles

Banks vying for higher market share

Future Of Retail Banking :

The accelerated retail growth has been on a historically low base

Penetration continues to be significantly low compared to global

bench marks

Share of retail credit expected to grow from 22% to 36%

Retail credit expected to grow to Rs.575,000 crs by 2010 at an annual

growth rate of 25%

Dramatic changes expected in the credit portfolio of Banks in the next

5 years

Housing will continue to be the biggest growth segment, followed by

Auto loans Banks need to expand and diversify by focussing on non urban

segment as well as varied income and demographic groups

Rural areas offer tremendous potential too which needs to be exploited


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Challenges:

Sustaining Customer loyalty

NPA reduction & Fraud prevention

Avoiding Debt Trap for customers

Bringing Rural masses into mainstream banking


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VISION , MISSION AND VALUES OF SBI

Importance Of Vision, Mission, and Values:

Vision, Mission and Values are the beacon lights by which organizations

world over set their strategies and then align their everyday priorities.

Together these statements define the essential Organization: its purpose, its

philosophy and its form..

Why Vision, Mission & Values?

The destination we want to reach is ourvision.

We normally have a reason for embarking on a journey. This is our

mission.

The underlying values that guide the way in which we travel towards

our destination.

What is Vision?

The Vision acts as a source of constant inspiration, a guiding

light for the future. The Vision statement presents a picture of the desirable

future.


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What is Mission?

The mission puts the vision in action.

It is what you do to actualize your vision: your plans, your strategies,your targets, your numbers, and your activities.

It concentrates on the present; it gives us an insight into the effort and

direction required to achieve the desired future.

Why Mission Statement?

.Mission statement helps we- Prioritize what is important to the organization.

Provides an inspiring statement of our ideals.

a shared and compelling picture of the future that everyone can

believe in and work towards achieving as a team.

What are Values?

Values are the basis on which you shape your actions so that your

vision can be reached.

OUR VISION:

MY SBI

MY CUSTOMER FIRST

MY SBI: FIRST IN CUSTOMER SATISFACTION


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MISSION:

We will be prompt, polite and proactive with our customers.

We will speak the language of young India.

We will create products and services that help our customers achieve

their goals.

We will go beyond the call of duty to make our customers feel valued.

We will be of service even in the remotest part of our country.

We will offer excellence in services to those abroad as much as we do

to those in India.

We will imbibe state of the art technology to drive excellence.

VALUES :

We will always be honest, transparent and ethical.

We will respect our customers and fellow associates.

We will be knowledge driven.

We will learn and we will share our learning. We will never take the easy way out.

We will do everything we can to contribute to the community we

work in.

We will nurture pride in India.


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Research methodology

Research methodology is a methodology for collecting all sorts of information & data

pertaining to the subject in question. The objective is to examine all the issues

involved & conduct situational analysis. The methodology includes the overall

research design, sampling procedure & fieldwork done & finally the analysis

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

both primary & secondary data. The primary data has been collected with the help of

questionnaire as well as personal observation book, magazine; journals have been

referred for secondary data. The questionnaire has been drafted & presented by the

researcher himself.

Sample Size:

Sample of 50 people was taken into study, and their data wascollected

Sampling Technique:

To study the Project, a Simple Random Sampling technique is used.

Data Collection:

Collection of data is done bySecondary Data & through

Questionnaire

i.e., Primary data was collected through Questionnaire.


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Data Analysis:

After data collection, Im able to analyze customers views, ideas and opinions

related to Advance Product and about SBI Advance Product and from this, SBI

will come to know the customer requirements.

Data Interpretation:

Interpretation of data is done by using statistical tools like Pie

diagrams, Bar graphs, and also using quantitative techniques

(by using these techniques) accurate information is obtained.

Classification & tabulation of data:

The data thus collected were classified according to the

categories, counting sheets & the summary tables were

prepared. The resultant tables were one dimensional, two

dimensional.

Statistical tools used for analysis:

Out of the total respondents, the respondents who responded

logically were taken into account while going into statistical

details & analysis of data. The tools that have been used foranalyzing data & inference drawing are mainly statistical tools

like percentage, ranking, averages, etc.

As per questionnaire and market surveys I have find out different responses from

different people. According to their responses I analyze the findings and draw certain

remarks.


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TABLE-I

The given below BAR graph shows the response of 100 customer.

INTERPRETATION

Out of 100 customers, 38 of them said that they expect QUICK

RESPONSE from the SBI bank, 37 said they expect GOODCUSTOMER

RELATION and 25 customers said that they expect EXTRA FACILITY

FOR EXISTING CUSTOMER.

SERVICES EXPECTED FROM SBI

QUICK

RESPONSE

38

GOOD CUSTOMER RELATION

37

EXTRA FACILITY FOR EXISTING CUSTOMER25


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TABLE-II

The given below Bar chart shows the SATISFACTION LEVEL OFCUSTOMER AFTER AVAILING LOAN

0

5

10

15

20

25

30

35

40

45

SATISFIED NORMAL DISSATISFIED

INTERPRETATION

Out of 100 customers 42 were found SATISFIED after taking loan from SBI

, 34 Customer were NORMALY satisfied from SBI and 24 were

DISSATISFIED because of interest charged, and behavior of the employee.

SATISFACTION AFTER

AVAILING LOAN

SATISFIED 42

NORMAL 34

DISSATISFIED 24


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TABLE-III

The given below Bar chart shows the CUSTOMER WANTS

TO TAKE ANOTHER LOAN FROM SBI

CUSTOMER WANTS TO TAKE ANOTHER

LOAN FROM SBI

YES 68%

NO 32%

0

10

20

30

40

50

60

70

1 2

YES

NO

Interpretation:

Out of 100 customers, 68 would like to take another loan from SBI but 32

would not like to take another loan from SBI.


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TABLE-IV

The given Bar graph shows THE INFLUENCING FACTOR

FOR TAKING LOAN FROM SBI

INFLUENCING FACTOR FOR LOAN FROM

SBI

ADVERTISEMENT 26

FRIENDS 20

EASY AVAILABILITY OF LOAN 22

TRUST 32


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0

5

1015

20

25

30

35

INFLUENCING

FACTOR FOR

LOAN FROM

S B I

A DV E RTIS E M E NT FRIE NDS

EA SY AV AILABIL ITY OF LOANTRUST

TRUST

Interpretation:

Out of 100 customers, 32 said trust, 26 said advertisement,22 said easy

availability and rest 20 said friends and relatives about the influence factor to

taking loan from SBI.

TABLE-V

The given Pie chart shows the processing procedure while availing loan:


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Interpretation:

Out of 100 customers 42 peoples said good, 30 people said

excellent and rest 28 people said average about the processingprocedure while availing the loan.

TABLE-VI

30%

42%

28%

Excellent

Good

Average


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The given Pie chart shows the co-operation of the

bank employees in processing and helping in

documentation:

21%

55%

24%

Excellent

Good

Average

Interpretation:

Out of 100 customers 55 peoples said good, 21 said

excellent and 24 peoples said average about co-operation of

employees in processing and documentation.

TABLE-VII


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The given Pie chart shows the interest rate charged

upon the loan available:

15%

36%

49%

Excellent

Good

Average

Interpretation:

Out of 100 peoples 49 said averages, 36 said good and 15said excellent about the interest rate charged upon the loan

available.


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CONCLUSION

SBI is providing good services to the clients during

sanctioning the loan. They cooperate with the clients to

given maximum benefits. Different banks offer same

product but services only aspect, which differentiate banks

products. Services through corporate banking, personal

banking SBI reaches among the maximum number of

customers across the country and More than average

number of customers were found satisfied by the offered

services of SBI.

FINDINGS


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1) Customers were satisfied from the quick response and

good customer relationship.

2) Customer found employees of SBI very helpful and

cooperative.

3) Customer are more influenced for taking loan from

SBI because of trust, customers have on SBI.

4) Customer found the procedure of availing loan simple

and hassle free.


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RECOMMENDATION

Their should be a separate section to deal with the

customer queries and other responses.

When a customer comes to know about the

product one should say more about its value and

benefits.


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Suggestions given by the consumers at the time ofsurvey:

There is more time period for repayment of education loan.

Education loan should be providing to private college also which is not under

any kind of University.

SBI should take steps to solve customer problems immediately.

Agents should be trained, well educated & proper trained to convince the

people about different advance product.

Loan sanction date should be according to customer convenient.

A customer awareness programme should be taking place in rural area.


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QUESTIONNAIRE

1) Name: 2) Profession:

3) Age group :( plz tick)

A)18-30 yrs. B)31-40 yrs. C)41-50 yrs. D)51-60 yrs.

4) Annual Income (in Rs.):-

A) 60000-200000 b) 200000-400000 c) 400000-1000000 d)

Above 1000000

5) What kind of service or services do you expect from SBI?

A) Quick Response B) Good Customer Relation

C) Extra Facility for Existing Customer

6) What influence you at taking loan from SBI?

A) Advertisement B) Friend/Relative

C) Easy availability loan D) Trust

7) How do you find the processing procedure while availing the loan?

A) Excellent B) Good C) Average

8) How do you find the cooperation of the bank employees in processing

and helping you with documentation?


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9) How do you find the interest rate charged upon the loan available?


10) Would you like to take another loan from SBI in future?

A) Yes B) No

11) Your overall level of satisfaction with SBl:

A) Satisfied B) Normal C) Dissatisfied

THANKS


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Bibliography

Banking Law and Practices (S.N.Maheswari)

The Economic Times

weblography

www.sbi.co.in


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SUMMER INTERSHIP PROGRAME

ON

FOR THE PARTIAL FULFILLMENT OF THE

DEGREE OF MASTER OF BUSINESS

ADMINISTRATION

SUBMITTED TO


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SESSION 2010-12

UNDER THE GUIDANCE

OFSUBMITTED BY

MISS MOHITA MISHRA SWAPNIL JAIN

ASST. PROFESSOR MBA IIIRD SEM

DEPARTMENT OF BUSINESS

STUDIES

BABULAL TARABAI INSTITUTE OF

RESEARCH & TECHNOLOGY SAGAR (M.P.)

project state bank of india summer training

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