Académique Documents
Professionnel Documents
Culture Documents
SESSION 2014-16
SUPERVISED BY:
SUBMITTED BY:
Miss Akanksha
Rohit Kumar
ASTT PROF.
UID-14MBA-
1259
DECLARATION
I ROHIT KUMAR, hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere for the requirement of a
degree program. Any literature, data or works done by others and cited within this dissertation
has been given due acknowledgement and listed in the reference section.
(ROHIT KUMAR)
|2
GUIDE CERTIFICATE
This is to certify that ROHIT KUMAR of M.B.A. 3 rd semester bearing university UID number
14MBA1259 has completed his summer training project under my guidance.
Project Guide :
(Miss Akanksha)
ASTT PROF.
|3
ACKNOWLEDGEMENT
(ROHIT KUMAR)
|4
PREFACE
M.B.A. is a course which combines both its theoretical and practical aspects in the field of
management.The purpose of this research methodology report is to expose the students of
management sciences to real business situation.
Education becomes more meaningful when its theoretical aspects are combind with practical
experience.This provides an opportunity to the students to improve their understanding of the
study.
|5
INDEX
CHAPTERS
NO.
1.
CHAPTERS NAME
INTRODUCTION OF ORGANISATION AND
PAGE NO.
TOPIC
1.1-INTRODUCTION OF TOPIC
7-9
10-11
1.3-CLASSIFICATION OF BANKS
11-13
1.4-INTRODUCTION OF ORGANISATION
13-42
42-53
2.
54-55
3.
56-57
4.
RESEARCH METHODOLOGY
58-61
5.
61-87
6.
88-90
7.
RECOMMENDATIONS,SUGGESTIONS AND
91-91
8.
FUTURE SCOPE
BIBLIOGRAPHY / REFERENCES
92-92
9.
ANNEXURE
93-95
CHAPTER-I
|6
History of banking
The History of Banking begins with the first prototype banks of merchants of the ancient world,
which made grain loans to farmers and traders who carried goods between cities. This began
around 2000 BC in Assyria and Babylonia. Later, in ancient Greece and during the Roman
Empire, lenders based in temples made loans and added two important innovations: they
accepted deposits and changed money. Archaeology from this period in ancient China and India,
also shows evidence of money lending activity.
Banking, in the modern sense of the word, can be traced to medieval and early Renaissance Italy,
to the rich cities in the north such as Florence, Venice and Genoa. The Bardi and Peruzzi families
dominated banking in 14th century Florence, establishing branches in many other parts of
Europe. Perhaps the most famous Italian bank was the Medici bank, established by Giovanni
Medici in 1397. The development of banking spread from northern Italy through Europe and a
number of important innovations took place in Amsterdam during the Dutch Republic in the 16th
century and in London in the 17th century. During the 20th century, developments in
Telecommunications and computing caused major changes to banks operations and let banks
dramatically increase in size and geographic spread. The Late-2000s financial crisis caused many
|7
bank failures, including of some of the world's largest banks, and much debate about regulation.
The world of banking has assumed a new dimension at dawn of the 21st century with the advent
of tech banking, thereby lending the industry a stamp of universality. In general, banking may be
classified as retail and corporate banking. Retail banking, which is designed to meet the
requirement of individual customers and encourage their savings, includes payment of utility
bills, consumer loans, credit cards, checking account and the like. Corporate banking, on the
other hand, caters to the need of corporate customers like bills discounting, opening letters of
credit, managing cash, etc.
Metamorphic changes took place in the Indian financial system during the eighties and nineties
consequent upon deregulation and liberalization of economic policies of the government. India
began shaping up its economy and earmarked ambitious plan for economic growth.
Consequently, a sea change in money and capital markets took place. Application of marketing
concept in the banking sector was introduced to enhance the customer satisfaction the policy of
privatization of banking services aims at encouraging the competition in banking sector and
introduction of financial services. Consequently, services such as Demit, Internet banking,
Portfolio Management, Venture capital, etc, came into existence to cater to the needs of public.
An important agenda for every banker today is greater operational efficiency and customer
satisfaction. The mew watchword for the bank is pretty ambitious: customer delight.
The introduction to the marketing concept to banking sectors can be traced back to American
Banking Association Conference of 1958. Banks marketing can be defined as the part of
management activity, which seems to direct the flow of banking services profitability to the
customers. The marketing concept basically requires that there should be thorough understanding
of customer need and to learn about market it operates in. Further the market is segmented so as
to understand the requirement of the customer at a profit to the banks.
DEFINITION OF BANK
The Oxford dictionary defines the Bank as
|8
According to Whitehead
A Bank is defined as an institution which collects surplus funds from the public,
safeguards them, and makes them available to the true owner when required and also lends sums
be their true owners to those who are in need of funds and can provide security.
Banking Company in India has been defined in the Banking Companies act 1949,
One which transacts the business of banking which means the accepting, for the purpose
of lending or investment of the deposits of money from the public, repayable on demand, or
otherwise and withdraw able be cheque, draft, order or otherwise.
The banking system is an integral subsystem of the financial system. It represents an important
channel of collecting small savings form the households and lending it to the corporate sector.
The Indian banking system has Reserve Bank of India (RBI) as the apex body for all matters
relating to the banking system. It is the central Bank of India. It is also known as the Banker to
All Other Banks.
|9
"The success of the economic reforms is therefore all to see and the driving force of these
reforms is the banking sector".
P. ChidamBaram
Banking system occupies an important place a nation's economy. A banking institution is
indispensable in a modern society. In plays a pivotal role in the economic development of
a country.
Thus, economic development of a country depends upon success of banking industry and
success of banking Industry is determined to a large extent by now well then needs of its
customers have been understood and satisfied.
.
| 10
In India banks are classified in various categories according to differ rent criteria.
The following charts indicate the banking structure:
Reserve Bank of
Co-operative Banks
Commercial Banks
Nationalized
Agricultural Credit
Private
Development Banks
1.3
Urban Credit
EXIM
Industrial
Agricultural
CLASSIFICATION OF BANKS
1. On the basis of Ownership
2. According to Function
'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private
sector.Private Banks have played a major role in the development of Indian banking industry.
They have madebanking more efficient and customer friendly. In the process they have jolted
public sector banks out ofcomplacency and forced them to become more competitive.India has a
better banking system in place of other developing countries.
CO-OPERATIVE BANKS
These are those banks that are jointly run by a group of individuals. Each individual has an equal
share in these banks. Its shareholders manage the affairs of the bank.
2. According to Function
COMMERCIAL BANKS
These are the banks that do banking business to earn profit. These banks make loans for short to
business and in the process create money. Credit creation is the main function of these banks.
FOREIGN BANKS
These are those banks that are incorporated by foreign company. They have set up their branches
in India. These banks have their head offices in foreigncountries. Their principle function is to
make credit arrangement or the export and the import of the country and these banks deals in
foreign exchange.
INDUSTRIAL BANKS
Industrial banks are those banks that offer long term and medium term loan to the industries and
also work for their development. These banks help industries in sale of their shares, debentures
and bonds. They give loan to the industries for the purchase of land and machinery.
AGRICULTURAL BANKS
Agricultural banks are those banks that give credit to agricultural sector of the economy.
SAVING BANKS
| 12
The principle function of these banks is to collect small savings across the country and put them
to the productive use. In India department of post office functions a savings banks.
CENTRAL BANK
Central Bank is the apex bank of the banking system of the country. It issues currency notes and
acts a banker's bank. Economic stability is the principle function of this bank. In short, it
regulates and controls the banking system of the country. RBI is the Central Bank of India.
1.4INTRODUCTION OF ORGANISATION
The evolution of State Bank of India can be traced back to the first decade of the 19th century. It
began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was
redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever jointstock bank of the British India, established under the sponsorship of the Government of Bengal.
Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras
(established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the
modern banking scenario in India, until when they were amalgamated to form the Imperial Bank
of India, on 27 January 1921.
An important turning point in the history of State Bank of India is the launch of the first Five
Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in
general and the rural sector of the country, in particular. Until the Plan, the commercial banks of
the country, including the Imperial Bank of India, confined their services to the urban sector.
Moreover, they were not equipped to respond to the growing needs of the economic revival
taking shape in the rural areas of the country. Therefore, in order to serve the economy as a
whole and rural sector in particular, the All India Rural Credit Survey Committee recommended
the formation of a state-partnered and state-sponsored bank.
The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of
India, and integrating with it, the former state-owned or state-associate banks. Subsequently, an
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,
| 13
because as much as a quarter of the resources of the Indian banking system were controlled
directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in
1959. The Act enabled the State Bank of India to make the eight former State-associated banks as
its subsidiaries.
The State Bank of India emerged as a pacesetter, with its operations carried out by the 480
offices comprising branches, sub offices and three Local Head Offices, inherited from the
Imperial Bank. Instead of serving as mere repositories of the community's savings and lending to
creditworthy parties, the State Bank of India catered to the needs of the customers, by banking
purposefully. The bank served the heterogeneous financial needs of the planned economic
development.
Branches
The corporate center of SBI is located in Mumbai. In order to cater to different functions, there
are several other establishments in and outside Mumbai, apart from the corporate center. The
bank boasts of having as many as 14 local head offices and 57 Zonal Offices, located at major
cities throughout India. It is recorded that SBI has about 10000 branches, well networked to cater
to its customers throughout India.
ATM Services
SBI provides easy access to money to its customers through more than 8500 ATMs in India. The
Bank also facilitates the free transaction of money at the ATMs of State Bank Group, which
includes the ATMs of State Bank of India as well as the Associate Banks State Bank of Bikaner
& Jaipur, State Bank of Hyderabad, State Bank of Indore, etc. You may also transact money
through SBI Commercial and International Bank Ltd by using the State Bank ATM-cum-Debit
(Cash Plus) card.
Subsidiaries
The State Bank Group includes a network of eight banking subsidiaries and several non-banking
subsidiaries. Through the establishments, it offers various services including merchant banking
services, fund management, factoring services, primary dealership in government securities,
credit cards and insurance.
Contact
State Bank Of India
Corporate Centre
Madam Cama Road
Mumbai 400 021
India
Website: www.statebankofindia.com
Description
Promoters
61.58
Individuals
6.06
Institutions
17.12
FII
8.70
Govt.
0.02
Others
6.52
The latest audited financial position ofthe State Bank of India as on 31 st March, 2015 is as
follows:-
Share money
746.57crores
Reserve/Other funds
127,691.65crores
Deposits
1576793.2crores
Advances
1300026crores
Net Profit
128438.22crores
PRODUCTS
DEPOSIT PRODUCTS
Saving Product
Interest Type
Payable Frequency
Compounded
Half Yearly
Fixed Deposit
Simple
Term Deposit
Compounded
Recurring Deposit
Compounded
Monthly
In case of Fixed Deposit Schemes, the customer has the option to withdraw the Interest Amount
as per the agreed frequency. In case of Term Deposit & Recurring Deposit Schemes the Total
Matured Amount will be payable on maturity only with a option to discontinue the Deposit
subject to penal clauses.
Loan Products
Co-Op. Societies
Individuals
Agriculture
Agriculture
Non-Farm Sector
Non-Farm Sector
Personal Vehicle
Personal Vehicle
Weavers/Industrial/Housing
Housing
Cash Credits
Cash Credits
MAR '15
MAR '14
MAR '13
MAR '12
MAR '
12 mths
12 mths
12 mths
12 mths
12 mths
746.57
746.57
0.00
746.57
746.57
0.00
684.03
684.03
0.00
671.04
671.04
0.00
635.00
635.00
0.00
| 17
ASSETS
CASH & BALANCES WITH RBI
BALANCE WITH BANKS, MONEY AT
CALL
ADVANCES
INVESTMENTS
GROSS BLOCK
REVALUATION RESERVES
ACCUMULATED DEPRECIATION
NET BLOCK
CAPITAL WORK IN PROGRESS
OTHER ASSETS
TOTAL ASSETS
CONTINGENT LIABILITIES
BILLS FOR COLLECTION
BOOK VALUE (RS)
0.00
127,691.65
128,438.22
1,576,793.2
4
205,150.29
1,781,943.5
3
137,698.05
2,048,079.8
0
Mar '15
0.00
117,535.68
118,282.25
1,394,408.5
1
183,130.88
1,577,539.3
9
96,412.96
1,792,234.6
0
Mar '14
0.00
98,199.65
98,883.68
1,202,739.5
7
169,182.71
1,371,922.2
8
95,455.07
1,566,261.0
3
Mar '13
0.00
83,280.16
83,951.20
1,043,647.3
6
127,005.57
1,170,652.9
3
80,915.09
1,335,519.2
2
Mar '12
0.00
64,351.04
64,986.04
933,932.81
119,568.96
1,053,501.7
7
105,248.39
1,223,736.2
0
Mar '11
12 mths
12 mths
12 mths
12 mths
12 mths
115,883.84
58,977.46
84,955.66
47,593.97
65,830.41
48,989.75
54,075.94
43,087.23
94,395.50
28,478.65
1,300,026.3
9
495,027.40
9,329.16
0.00
0.00
9,329.16
0.00
68,835.55
2,048,079.8
0
1,209,828.7
2
398,308.19
8,002.16
0.00
0.00
8,002.16
0.00
43,545.90
1,792,234.6
0
1,045,616.5
5
350,927.27
6,595.71
0.00
0.00
6,595.71
409.31
47,892.03
1,566,261.0
3
867,578.89
756,719.45
312,197.61
5,133.87
0.00
0.00
5,133.87
332.68
53,113.02
1,335,519.2
4
295,600.57
4,431.96
0.00
0.00
4,431.96
332.23
43,777.85
1,223,736.2
1
1,093,422.5
1
0.00
172.04
1,091,358.3
7
0.00
1,584.34
993,018.45
899,565.18
790,389.59
0.00
1,445.60
0.00
1,251.05
0.00
1,023.40
LOAN
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial
assets over time, between the lender and the borrower. In a loan, the borrower initially receives
or borrows an amount of money, called the principal, from the lender, and is obligated to pay
back or repay an equal amount of money to the lender at a later time. Typically, the money is
| 18
paid back in regular installments, or partial repayments; in an annuity, each installment is the
same amount.
The loan is generally provided at a cost, referred to as interest on the debt, which provides an
incentive for the lender to engage in the loan. In a legal loan, each of these obligations and
restrictions is enforced by contract, which can also place the borrower under additional
restrictions known as loan covenants. Although this article focuses on monetary loans, in practice
any material object might be lent.
Acting as a provider of loans is one of the principal tasks for financial institutions. For other
institutions, issuing of debt contracts such as bonds is a typical source of funding.
TYPES OF LOANS
1. Secured
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as
collateral for the loan. A subsidized loan is a loan that will not gain interest before you begin to
pay it. It is known to be used at multiple colleges. An unsubsidized is a loan that gains interest
the day of disbursement.
A mortgage loan is a very common type of debt instrument, used by many individuals to
purchase housing. In this arrangement, the money is used to purchase the property. The financial
institution, however, is given security a lien on the title to the house until the mortgage is
paid off in full. If the borrower defaults on the loan, the bank would have the legal right to
repossess the house and sell it, to recover sums owing to it.
In some instances, a loan taken out to purchase a new or used car may be secured by the car; in
much the same way as a mortgage is secured by housing. The duration of the loan period is
considerably shorter often corresponding to the useful life of the car. There are two types of
auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a
consumer. An indirect auto loan is where a car dealership acts as an intermediary between the
| 19
bank or financial institution and the consumer. A type of loan especially used in limited
partnership agreements is the recourse note. A stock hedge loan is a special type of securities
lending whereby the stock of a borrower is hedged by the lender against loss, using options or
other hedging strategies to reduce lender risk.
A pre-settlement loan is a non-recourse debt, this is when a monetary loan is given based on the
merit and awardable amount in a lawsuit case. Only certain types of lawsuit cases are eligible for
a pre-settlement loan. This is considered a secured non-recourse debt because if the case reaches
a verdict in favor of the defendant the loan is forgiven.
2. Unsecured
Unsecured loans are monetary loans that are not secured against the borrower's assets. These
may be available from financial institutions under many different guises or marketing packages:
personal loans
bank overdrafts
The interest rates applicable to these different forms may vary depending on the lender and the
borrower. These may or may not be regulated by law. In the United Kingdom, when applied to
individuals, these may come under the Consumer Credit Act 1974.
3. Demand
Demand loans are short term loans (typically no more than 180 days) that are atypical in that
they do not have fixed dates for repayment and carry a floating interest rate which varies
| 20
according to the prime rate. They can be "called" for repayment by the lending institution at any
time. Demand loans may be unsecured or secured.
| 21
against LIC Policies 5% SBI GETS SDL/ LDL 50% SDFS SDL / LDL 30% / 50% SBI Career
Loan As per Security Offered Education Plus 10% Others Nil
7. PROCESSING FEES*: Product Processing Fee Xpress Credit 1% of the Loan Amount SBI
Saral 2% - 3% of the Loan Amount SBI Career Loan 0.5% of the Loan Amount Loan for ESOPs
Rs 2000 per application Equity Plus Rs 2000 per application Festival Loan 1% of the Loan
amount Loan against Mortgage of Immovable Property 2% of the Loan amount ; Max Rs 50000
Rent Plus 2% of the Loan amount; Max Rs 100000 Gold Loan For Loan up to Rs 25000: Rs 500
per application For Loan above Rs 25000: 1% of the loan amount or Rs 1000 whichever is
higher Loan against units of MF (Equity) 1% of the Loan amount Loan for application to IPOs
1st Loan: Rs 500 ; 2nd & 3rd Loan : Rs 100; After 3 Loans: Nil Advance against RBI Relief
Bonds 1% of the Loan Amount Others Nil *Plus applicable Service Tax
Bounced cheque/ECS or SI dishonours:- A penalty of Rs 250/- will be charged for every
bounced cheque/ECS or SI dishonours. The rate may vary from time to time. In the event of
bouncing of cheque, legal action under section 138 of the Negotiable Instrument Act, 1881 will
be initiated.
8. REPAYMENT: The loan is to be repaid in Equated Monthly Instalments over the tenure of
the loan or in Lump sum at the end of the tenure depending on the product. The repayment
instalment commences from a date specified in the sanction letter. The liability to the bank will
be extinguished only when the outstanding in the loan account becomes Nil, on payment of
residual amount, if any.
9. PRE-CLOSURE CHARGES: Loans on Fixed and Floating rate of interest: No pre-payment/
Pre-closure penalty will be levied except for Rent Plus in which 1% of the loan amount prepaid
will be charged as prepayment penalty.
10. OTHER FEE/CHARGES: Particulars Amount (Rs) Collected for payment to empanelled
Advocate for Legal opinion, Search Report and Valuation Fee As per Actual Any Other Fee, if
any As per Actual
11. DEFAULT: In the event of default i.e. if the amount due is not paid by due date, the
customer will be sent reminders from time to time for payment of any outstanding on his loan
account, by post, fax, telephone, email, SMS messaging and/or through third parties appointed
for collection purpose to remind, follow-up and collect dues. Any third party so appointed, shall
adhere to the Indian Banks Associations (IBA) code of conduct on debt collection.
12. SECURITY: As per the Scheme.
13. INSURANCE: As per the Scheme.
| 22
13. PENAL INTEREST: Penal Interest will not be charged for loans up to Rs 25000. For Loans
above Rs.25000/- , if the irregularity exceeds EMI or Instalment amount, for a period of one
month ,then penal interest would be charged @2% p.a.(over and above the applicable interest
rate) on the overdue amount for the period of default. If part instalment or part EMI remains
overdue, then penal interest should not be levied.
14. TIMELINE FOR DISPOSAL OF LOAN APPLICATIONS RACPC RCPC Sourced by
MRT Sourced by BC/BF/Branch Rent Plus 6 days 7 days 9 days Mortgage Loan 6 days 7 days 9
days Personal Loan 3 days 2 days 3 days
15. CUSTOMER SERVICE For any service related issue, customer can get in touch with SBI:
Calling Customer Help Line Numbers Contact Customer Grievance Cell at our Local Head
Offices Write to Grievance Cell at our Local Head Offices (Details on Help line Numbers and
Grievance Cell available on www.sbi.co.in)
In case a customer is not satisfied with the handling of grievance by the Local Head Office, a
communication may be sent (enclosing the message sent earlier to Local Head Office) to the Deputy General Manager (Customer Service), Customer Service Dept, State Bank of India; State
Bank Bhawan, 4th floor; Madame Cama Road, Mumbai-400 021, Telephone No. (022)
22029456, 22029451 22740432, 22740431, 22740433 Fax no. (022) 22742431. E-mail address dgm.customer@sbi.co.in.
DISCLOSURE State Bank of India is authorized to disclose from time to time any information
relating to the loan to any credit bureau (Existing or Future) approved by Government of India
and Reserve Bank of India without any notice to the borrower. State Bank of India is also
authorized to make inquiries with the Credit Information Bureau of India (CIBIL) and get the
applicants Credit Information Report
| 23
Coimbatore,
Tirupur, Guwahati,
Shillong,
Hyderabad,
The woman should be the sole applicant or first co-applicant of Home Loan and also
The property proposed to be financed should be either in the sole name of the woman
borrower or she should be the first owner in case of joint ownership
| 24
Tenors
Existing
Revised
Existing for
for Public For Public Senior
w.e.f.
Citizens
08.06.2015
Revised
for Senior
Citizens
w.e.f.
08.06.2015
6.00
5.50
6.25
5.75
7.00
6.75
7.25
7.00
7.25
7.25
7.50
7.50
7.50
7.50
7.75
7.75
8.00
8.00
8.25
8.25
8.25
8.25
8.50
8.50
8.25
8.25
8.50
8.50
8.00
8.00
8.25
8.25
7 days to 45 days
The interest rate payable to SBI Staff and SBI pensioners will be 1.00% above the applicable
rate. The rate applicable to all Senior Citizens and SBI Pensioners of age 60 years and above will
be 0.25% above the rate payable for all tenors to resident Indian senior citizens i.e. SBI resident
Indian Senior Citizen Pensioners will get both the benefits of Staff (1%) and resident Indian
Senior Citizens (0.25%).
The proposed rates of interest shall be made applicable to fresh deposits and renewals of
maturing deposits. The interest rates on "SBI Tax Savings Scheme 2006(SBITSS)" schemes and
NRO deposits shall be aligned as per the proposed rates for domestic retail term
deposits. However, NRO deposits of Staff are not eligible for additional 1% interest otherwise
| 25
applicable to staff domestic retail deposits, these rates of interest shall also be made applicable to
domestic term deposits from Cooperative Banks.
Premature Withdrawal- The instructions in respect of premature withdrawals
of Retail Term Deposits will be same as under :
Premature penalty for Retail Term Deposits up to Rs 5.00 lacs will be NIL'
provided the deposits have remained with the bank for at least 7 days.
For term deposit above Rs 5.00 lacs but less than Rs 1 crore ,the prepayment
penalty will be 1% for all tenors..
The revised interest rates on 'Domestic Term Deposits' of Rs One Crore & above' with effect
from 26.06.2015 would be as under:
Tenors
Existing Revised
Existing Revised
forPublic w.e.f.26.06.20 forSeni w.e.f.26.06.20
15 for Public or
15 for Senior
Citizen Citizens
s
5.50%
5.50%
5.75%
5.75%
6.75%
6.75%
7.00%
7.00%
7.25%
7.25%
7.50%
7.50%
7.50%
7.25%
7.75%
7.50%
7 days to 45 days
| 26
1 year
8.00%
7.50%
8.25%
7.75%
8.25%
7.50%
8.50%
7.75%
8.25%
7.50%
8.50%
7.75%
8.00%
7.50%
8.25%
7.75%
5 years to 10 years
Premature payment of Bulk term deposits:
Premature penalty for Bulk Term Deposits for all tenors will be 1%. It will be applicable for all
new deposits including renewals. There is no discretion for reduction/waiver of penalty for
premature withdrawal of term deposits.
The revised rates of interest shall be made applicable to fresh deposits and renewals of maturing
deposits. The interest rates on NRO term deposits shall be aligned as per the rates for domestic
term deposits. These rates of interest shall also be made applicable to domestic term deposits
from Cooperative Banks. However, NRO deposits of Staff are not eligible for additional 1%
interest otherwise applicable to domestic term deposits.
REINVESTMENT PLAN
(Applicable to Domestic / NRO Deposits)
in
Months
PUBLIC/NRO
STAFF
103.6579
104.1675
105.7311
106.5114
12
108.2432
109.3083
24
117.7415
120.0686
36
127.7599
131.5662
48
138.6306
144.1648
60
148.5947
156.0509
72
160.8437
170.5767
84
174.1024
186.4545
96
188.4541
203.8103
108
203.9887
222.7816
120
220.8040
243.5189
| 28
Rate (% p.a.)
4.0% P.A.
No interest is
No penalty will be
levied, for deposits opened
or renewed from 10th April
2015 and withdrawn after
completion of one year and
deposit amount is up to Rs.
5.00 lacs.
or renewed
Before
1st 1.00%
January, 2012
From
1st 0.50%
January, 2012
09th April 2015
From 10th April 1.00%
2015
No interest is
7.50%
No interest is
payable if the deposit is
withdrawn before 7 days.
On pre-mature
withdrawal of the deposit
(after completion of 7
days), interest will be
paid at applicable rate for
the period the deposit has
actually remained with
the Bank or contracted
rate less applicable
penalty (as per table
mentioned below),
whichever is lower.
NRO term
Penalty
deposits opened
or renewed
Before
10th 0.50%
April 2015
From 10th April 1.00%
2015
USD
GBP
EURO
| 31
1.26
1.49
0.83
1.90
2.13
1.12
3 years
2.26
2.39
1.24
EDUCATION LOANS
1) SBI STUDENT LOAN SCHEME
| 32
Loan Amount
Rate of Interest*
Above Rs.4 lacs and upto Rs.7.50 lacs 3.90% above Base Rate, currently 13.60%
p.a.
IT exemption under Section 80(E) in respect of interest paid in all Education Loans
ROI
List
List AA 25 bps above Base Rate i.e., 9.95% p.a. at present (Upto Rs. 30 Lacs
without collateral)
List A
25 bps above Base Rate i.e., 9.95% p.a. at present (Upto Rs. 20 Lacs
| 33
List B
50 bps above Base Rate i.e., 10.20% p.a. at present (Upto Rs. 20 Lacs
without collateral)
Further concessions:
25 bps if collateral security >= the loan amount
25 bps work experience of more than 2 years
(effective rate of interest with both concessions not to be lower than 25 bps
above Base Rate presently, 9.95% p.a.)
List C
175 bps above Base rate i.e. 11.45% p.a. (Upto Rs. 7.5 Lacs without
collateral, upto Rs. 30 with collateral)
1% concession for full tenure of the loan, if interest is
serviced promptly as and when applied during the moratorium
period, including course duration#
Check Off
Full Check-off (Category I)
Rate of Interest*
315 - 365 bps above
Base Rate i.e., 12.85% 13.35% p.a. currently
Partial Check-off (Category II) 415 - 465 bps above
Base Rate i.e., 13.85% 14.35% p.a. currently
No Check-off (Category III)
515 - 565 bps above
Base Rate i.e., 14.85% 15.35% p.a. currently
3.65% above Base Rate,
currently 13.35% p.a.
| 34
Rate of Interest*
Loan against security of FCNR(B) Deposit 225 bps above Base Rate i.e., 11.95%
p.a.
11.70% p.a.
Tenure
Rate of Interest*
Upto 3 years
More than 3 years and below 6 4.50% above Base Rate, currently 14.20%
years
p.a.
Rate of Interest*
| 36
Rate of Interest*
For employees qualifying under Xpress Credit 6.50% above Base Rate, currently
16.20% p.a.
For Others
Rate of Interest*
| 37
Type of facility
Rate of Interest*
Demand Loan
Rate of Interest*
Rate of
Interest*
For Loans upto Rs 7.50 Cr in Metro Center and Rs 5.00 Cr in Non- Metro 3.25%
Center
above
Base
Rate,
currently
12.95%
p.a.
| 38
3.40%
above
Base
Rate,
currently
13.10%
p.a.
Type of Security
Bank's TDRs/STDRs
Rate of
Interest*
4.50%
above
Base
Rate,
currently
14.20%
p.a.
1.00%
above
the rate
of
interest
payable
| 39
on
deposits
Govt.
Securities/Public
Sector
KVPs/RBI Relief Bonds, LIC Policy
SBI
Plus
Bonds/NSCs/ 4.25%
above
Base
Rate
,
currently
13.95%
p.a.
Education NA
4.50%
above
Base
Rate,
currently
14.20%
p.a.
(*In case interest is paid during the course period a rebate of 0.50% will be admissible, only
during the moratorium period)
ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICE
PROCESSING FEES
Personal Loans
Scheme Name
Clean Overdraft
SBI Saral
SBI Pension Loan
Jai Jawan Pension Loan
Festival Loan Scheme
Xpress Credit
Processing Fees
NIL
2.02% - 3.03% of the Loan Amount
0.51% of the Loan amount (Minimum Rs.
250)
NIL
1.01% of the Loan amount
1.01% of the Loan Amount
Auto Loan
| 40
Scheme Name
SBI CAR LOAN SCHEME
Processing Fees
0.52%
of
loan
amount
Min:
Rs.
1035.00
Max: Rs. 10350.00
SBI Combo Loan Scheme
0.52%
of
loan
amount
Min: Rs. 1035.00 Max: Rs.
10350.00
NRI Car Loan
0.52%
of
loan
amount
Min:
Rs.
1035.00
Max: Rs. 10350.00
Used Car Loans
0.52%
of
loan
amount
Min:
Rs.
517.00
Max: Rs. 10350.00
Certified Pre-owned car loan
0.52%
of
loan
amount
Min:
Rs.
517.00
Max: Rs. 10350.00
SBI Loyalty Car Loan Scheme
0.25%
of
loan
amount
Min:
Rs.
507.00
Max: Rs. 5073.00
SBI NANO YOUTH CAR LOAN SCHEME 0.52%
of
loan
amount
Min: Rs. 1015.00
2-WHEELER SCHEME
1.24%
of
loan
amount
Min:
Rs.
260.00
Max: Rs. 517.00
SUPER BIKE LOAN SCHEME
2.03%
of
loan
amount
Min:
Rs.
6088.00
Max: Rs. 20292.00
application
1st Loan: Rs 511
;
2nd
&
3rd
Loan : Rs 101;
After 3 Loans:
NIL
After 3 Loans:
Nil
1.01% of the
Loan amount
NIL
Gold Loans
Parameters
Processing
Fees
(i) For BIS Hallmarked Jewellery/ Ornaments and specially minted NIL
Gold Coins sold by Banks :
(ii) For Non Hallmarked Jewellery/ Ornaments
(a)Up to
Rs 25000:
Rs 256 per
application
(b)Above
Rs 25000:
0.51% of
the Loan
amount or
Rs
511
whichever
is higher.
*Valid only during the Campaign Period from 01.04.2015 to 30.06.2015
Loan against Property
Scheme Name
Loan against
Property
Rent Plus
Mortgage
of
Processing Fees
Immovable 1.01% of the Loan amount ;
Max Rs 50933
2.02% of the Loan amount;
Max Rs 101865
| 42
Career Loan
Scheme Name
SBI Career Loan
Education Plus
Processing Fees
0.51% of the Loan Amount
NIL
AGRICULTURAL SEGMENT
LIMIT
Effective rate
1.
11.70
| 43
2.
12.70
3.
9.70+4.00= 13.70
13.70
** Short term crop loans up to Rs.3.00 lacs will be charged 7% p.a (fixed) as per Government of
India (GoI) directives. It is subject to GoI providing 2%p.a interest subvention to Bank on such
advances. Otherwise, as per Bank's norms.
.TERM LOANS (Investment loans)(REPAYMENT MORE THAN 3 YEARS)
Effective Interest Rates % p.a
Sl.N
o
LIMIT
REPAYMENT
More than 3 years to Less than 5
years
More than 5
years
1.
12.20
12.45
2.
13.45
3.
14.45
Rating
REPAYMENT
Term Loans
1.
SB 1 & SB 2
11.95
More than 5
years
12.45
12.70
| 44
2.
SB3 to SB 5
12.45
12.95
13.20
3.
12.70
13.20
13.45
4.
SB8 & SB 9
13.20
13.70
13.95
5.
SB 10
13.70
14.20
14.45
6.
SB 11 to SB15 16.20
16.70
16.95
CASH
TERM LOAN / DEMAND
CREDIT / LOAN
DEMAN
D LOAN
Repayable Repayabl Repayable Repayable
on
e in 1-3
in 3-5
in 5 years
demand
years
years
and above
Upto Rs.50,000
11.70 %
12.70%
13.20%
13.45%
12.70%
13.70%
14.20%
14.45%
13.45%
14.45%
14.95%
15.20%
14.45%
| 45
15.45%
15.45%
15.95%
16.20%
Branches of SBI
State Bank Of India in Himachal Pradesh along with the location of its around 225 branches in
the state.
State Bank of India has 173 foreign offices in 37 countries across the globe.
SBI has about 27,000+ ATMs (25,000th ATM was inaugurated by the then Chairman of
State Bank Shri O.P. Bhatt on 31 March 2011, the day of his retirement); and SBI group
(including associate banks) has about 45,000 ATMs.
SBI has 21,500 branches, including branches that belong to its associate banks.
India's number one ADB is in bellaryi e State bank of India bellary ADB
State Bank of India has become the first bank to install an ATM a Drass in Jammu
&KashmirsKargil region. This is the banks 27,032nd ATM on 27 july 2012(k.k)
| 46
1.5INTRODUCTION OF ORGANISATION
VISION
| 47
To be a Leading Global Bank with Pan India footprints and become a household brand in the
Indo-Gangetic Plains providing entire range of Financial Products and Services under over one
roof.
MISSION
Banking For the Unbanked.
Branches : 5670
ATMs
: 6009
DEPOSIT AMOUNT
INTEREST RATE (%
p.a.)
General
Senior Citizen
7 days to 14 days
6.00
| 48
N.A
15 days to 29 days
6.00
N.A
30 days to 45 days
6.25
N.A
46 days to 90 days
7.00
N.A
7.00
N.A
7.25
N.A
7.25
N.A
1 year
7.50
N.A
7.75
N.A
b) For domestic deposits - Less than Rs. 1 cr (last revised on Jun 08, 2015)
MATURITY PERIOD
DEPOSIT AMOUNT
INTEREST RATE (%
| 49
p.a.)
General
Senior Citizen
7 days to 14 days
4.50
5.00
15 days to 29 days
4.50
5.00
30 days to 45 days
5.00
5.50
46 days to 90 days
6.50
7.00
6.75
7.25
7.75
8.25
1 year
7.75
8.25
8.25
8.75
8.25
| 50
8.75
Above 2 years to 5 years
8.25
8.75
8.00
8.50
c) For domestic deposits - Rs. 1 cr to Rs. 10 cr (last revised on Jun 08, 2015)
MATURITY PERIOD
DEPOSIT AMOUNT
INTEREST RATE (%
p.a.)
General
Senior Citizen
7 days to 14 days
Rs. 1 cr to Rs. 10 cr
6.00
N.A
15 days to 29 days
Rs. 1 cr to Rs. 10 cr
6.00
N.A
30 days to 45 days
Rs. 1 cr to Rs. 10 cr
6.25
N.A
46 days to 90 days
Rs. 1 cr to Rs. 10 cr
7.00
N.A
Rs. 1 cr to Rs. 10 cr
7.25
| 51
N.A
180 days to 270 days
Rs. 1 cr to Rs. 10 cr
7.75
N.A
Rs. 1 cr to Rs. 10 cr
1 year
Rs. 1 cr to Rs. 10 cr
8.00
N.A
8.25
N.A
Rs. 1 cr to Rs. 10 cr
8.25
N.A
Rs. 1 cr to Rs. 10 cr
8.00
N.A
Rs. 1 cr to Rs. 10 cr
8.00
N.A
d) For domestic deposits - Rs. 10 cr to Rs. 100 cr (last revised on May 15,
2015)
MATURITY PERIOD
DEPOSIT AMOUNT
INTEREST RATE (%
p.a.)
General
Senior Citizen
| 52
7 days to 14 days
6.00
N.A
15 days to 29 days
6.00
N.A
30 days to 45 days
6.25
N.A
46 days to 90 days
7.00
N.A
7.00
N.A
7.25
N.A
7.25
N.A
1 year
7.50
N.A
7.75
N.A
Tax Saver Fixed Deposits (Amount capped at Rs. 1 lakh per Financial Year)
MATURITY PERIOD
DEPOSIT
AMOUNT
INTEREST
| 53
RATE (% p.a.)
General
Senior Citizen
8.00
N.A
8.25
N.A
Tax Implications:
The amount invested in fixed deposits with a maturity period of 5 years in a Scheduled bank is
eligible for tax deduction under section 80C. However, the interest earned on the deposit is
taxable.
Tax will be deducted at the source, if the interest income on a fixed deposit per annum exceeds
Rs.10000
a) For NRE Fixed Deposit - Less than Rs. 1 cr (last revised on Jun 08, 2015)
MATURITY PERIOD
DEPOSIT AMOUNT
INTEREST
RATE (% p.a.)
1 year
8.25
| 54
8.25
8.25
8.00
b) For NRE Fixed Deposit - Rs. 1 cr to Rs. 10 cr (last revised on Jun 08, 2015)
MATURITY PERIOD
DEPOSIT AMOUNT
INTEREST
RATE (% p.a.)
1 year
Rs. 1 cr to Rs. 10 cr
8.25
Rs. 1 cr to Rs. 10 cr
8.50
Rs. 1 cr to Rs. 10 cr
8.00
Rs. 1 cr to Rs. 10 cr
8.00
| 55
Interest Rate
30 Days
5.00%
45 Days
5.00%
60 Days
6.50%
90 Days
6.50%
120 Days
6.75%
6 Months
7.50%
9 Months
7.50%
| 56
12 Months
8.10%
18 Months
8.10%
2 Years
8.10%
3 Years
8.00%
4 Years
8.00%
5 Years
8.00%
7 Years
8.00%
10 Years
8.00%
Mar '14
Mar '12
Mar '
12 mths
12 mths
12 mths
12 mths
12 mths
370.91
370.91
0.00
0.00
37,321.06
37,691.97
501,378.64
45,670.55
547,049.19
17,204.89
601,946.05
Mar '15
362.07
362.07
0.00
0.00
34,125.07
34,487.14
451,396.75
48,034.41
499,431.16
15,093.44
549,011.74
Mar '14
353.47
353.47
0.00
0.00
30,894.58
31,248.05
391,560.06
39,620.92
431,180.98
15,019.15
477,448.18
Mar '13
339.18
339.18
0.00
0.00
26,028.37
26,367.55
379,588.48
37,264.27
416,852.75
13,524.18
456,744.48
Mar '12
316.81
316.81
0.00
0.00
19,720.99
20,037.80
312,898.73
31,589.69
344,488.42
12,328.27
376,854.49
Mar '11
12 mths
12 mths
12 mths
12 mths
12 mths
Assets
Cash & Balances with RBI
Balance with Banks, Money at Call
Advances
Investments
Gross Block
Revaluation Reserves
Accumulated Depreciation
Net Block
Capital Work In Progress
Other Assets
Total Assets
24,224.94
31,709.23
380,534.40
151,282.36
3,551.48
1,387.55
0.00
2,163.93
0.00
12,031.19
601,946.05
22,245.58
22,972.87
349,269.13
143,785.50
3,419.74
1,408.18
0.00
2,011.56
0.00
8,727.10
549,011.74
17,886.25
9,249.13
308,725.21
129,896.19
3,357.68
1,428.85
0.00
1,928.83
0.00
9,762.58
477,448.19
18,492.90
10,335.14
293,774.76
122,629.47
3,168.86
1,449.53
0.00
1,719.33
0.00
9,792.88
456,744.48
23,776.90
5,914.32
242,106.67
95,162.35
3,105.60
1,470.76
0.00
1,634.84
0.00
8,259.42
376,854.50
Contingent Liabilities
Bills for collection
Book Value (Rs)
293,586.00
0.00
203.24
238,008.93
0.00
952.50
231,810.55
0.00
884.03
224,750.05
0.00
777.39
138,915.26
0.00
632.48
CHAPTER-II
REVIEW OF LITERATURE
| 58
REVIEW OF LITERATURE
The banking sector in India has made remarkable progress since the economic reforms in
1991.New private sector banks have brought the necessary competition into the industry and
spearheaded the changes towards higher utilization of technology, improved customer service
and innovative products. Customers are now becoming increasingly conscious of their rights and
are demanding more than ever before.
1. Robert B. Avery and Allen N. Berger had studied about the Loan commitments and
bank
risk exposure. They studied about the Loan commitments increase a bank's
risk by obligating it to issue future loans under terms that it might otherwise refuse.
However, moral hazard and adverse selection problem spontaneitally may result in these
contracts being rationed or sorted.
2. SumitAgarwal,SouphalaChomsisengphetand John C. Driscoll had studied about the
Loan commitments and private firms. They studied that, Most loans are in the form
of credit lines. Empirical studies of line demand have been complicated by their use of
data on publicly traded firms, which have a wide menu of financing options.
3. In may 1991 Stephen F. Borde had studied about the Is the Savings and Loan Industry
Facing Extinction? This article tells about the Saving and loan crisis. Proposed
solutions are discussed in the context of the industry as it currently stands. With a
somewhat similar liability structure to that of banks (mainly short-term deposits), the
asset structure of S&Ls is quite different. Whereas banks assets consist of short-term
loans, S&L assets consist largely of long-term loans, such as home ownership mortgages.
Therefore, in the absence of adequate hedging measures, S&Ls are more vulnerable to
interest rate risk, which can lead to lower profits when interest rates rise.
4. In 1991 Susan M. Wachter and Paul S. Calemhad studied about the Community
Reinvestment and Credit Risk: Evidence from an Affordable Personal Loan Program.
| 59
This study examines the performance of personal loans originated by a major depository
institution in Philadelphia under a flexible lending program between 1988 and 1994.
5. In feb 1 2009 Vincent W. Yao and Eric Rosenblatt and Michael LaCour-Little had
studied about the unique paired loan dataset containing information on multiple
conventional conforming mortgage loans of extraction decisions over the period 20002006.
CHAPTER-III
NEED, SCOPE ANDOBJECTIVES OF
THE STUDY
| 60
CHAPTER- IV
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
| 62
Research is an art of scientific investigation. In other word research is a scientific and systematic
search for pertinent information on a specific topic. The logic behind taking research
methodology into consideration is that one can have knowledge about the method and procedure
adopted for achievement of objectives of the project. With the adoption of this others can
evaluate the results also. Its main aim is to keep the researchers on the right track.
The methodology adopted for studying the objectives was surveying the saving account holders
of Shimla area only. So the nature of requirements of the study to collect all the relevant
information regarding the study collect direct personal interview method with structured
questionnaire was adopted for the collection of primary data.
Secondary data has been collected through the various magazines and newspapers and by surfing
on Internet. And the guide in the organization was consulted at many times.
SAMPLE DESIGN:-A sample design is a definite plan for obtaining a sample from a given
population. It refers to the techniques or the procedure the researcher would adopt in selecting
items for the sample. Sample design may as well lay down the number of items to be included in
the sample i.e. the size of the sample. Sample design is determined before data are collected.
Here we select the population as sample in our sample design. The selected respondents should
be as representatives of the total population.
POPULATION
The study aimed to include the customers of SBI and PNB in Shimla area, to make a
comparative analysis of different loan schemes of these two banks.
SAMPLE SIZE
A Sample size of 100 respondents will be taken for the current study because it is not possible to
cover the whole universe in the available time period. So it is necessary to take the sample size.
| 63
In 100 respondents 50 respondents from SBI and 50 from PNA were included for the study. The
samples will be taken from peoples of age group lying between 15 to above 45 years. The sample
will be taken in the form of strata based on age, sex, and income group.
Sampling technique:
The sampling techniques used are convincing technique and simple random sampling technique.
Sample area:
It includes the customer of Shimla Area Only.
Type of Research
The study undertaken is of Descriptive Research in nature.
SECONDARY DATA
| 64
Secondary data is the data which is available in readymade form and which is already used by
people for some purposes. There may be various sources of secondary data such as-newspapers,
magazines, journals, books, reports, documents and other published information.\
MANUALS AND BROUCHERS OF DIFFERENT BANKS:- We take the help of bank staff
and other people who give us deep information and data which may not be available at
anywhere. They give us there full co-operation.
INTERNET:-We also take into consideration the internet facility with which we collect
lot of latest information.
1. BAR CHARTS
2. PIE CHARTS
| 65
3. TABLES
Bar charts and pie charts are very useful tools for every research to show the result in a clear,
simple way. So I need not necessary for any observer to read all the theoretical detail, simple on
seeing the charts anybody that what is being said.
CHAPTER-V
DATA ANALYSIS AND INTERPRETATION
1. From how many years you are associated with this bank?
Table 5.1.1
RESPONSE
A.Less than 10 year
NO. OF RESPONDENTS
8
B.10-20
16
32 %
26
52 %
50
TOTAL
%AGE
16 %
100 %
30%
10-20
20%
10%
0%
INTERPRETATION In this chart it is very much clear that 16% respondents are
associated less than 10 year, 32% respondents are associated from 10-20 years, 52%
respondents are associated from more than 20 years.
2. How do you come to know about the different loan schemes of this bank?
Table 5.1.2
RESPONCE
A.
News paper
NO. OF RESPONDENTS
10
%AGE
20 %
| 67
B.
Television
03
06 %
C.
Internet
18
36 %
D.
Other sources
19
38 %
50
TOTAL
100 %
20%
News paper
38%
Television
Internet
6%
Other sources
36%
INTERPRETATIONIn this pie chart it is very much clear that 20% respondents came to
know from newspaper, 06% respondents came to know from television, 36% respondents came
to know from internet, 38% respondents came to know from other resources.
RESPONCE
A. Personal loan
B. Agriculture loan
NO. OF RESPONDENTS
16
8
%AGE
32%
16%
| 68
6
9
11
50
C. Home loan
D. Education loan
E. Other loan
TOTAL
12%
18%
22%
100 %
Types of loan
35%
30%
25%
20%
15%
10%
5%
0%
loa
n
O
th
er
loa
n
Ed
uc
a
tio
n
loa
n
H
om
e
loa
n
ult
ur
e
gr
ic
A
Pe
rs
on
al
loa
n
Types of loan
INTERPRETATION In this chart it is very much clear that 32% respondents taken
personal loan, 16% respondents taken agriculture loan, 12% respondents taken home loan, 18%
respondents taken education loan, 22% respondents taken other loan.
RESPONCE
NO. OF RESPONDENTS
%AGE
| 69
A. Yes
B. No
TOTAL
31
62%
19
38%
50
100 %
Analysis:-Figure 5.1.4
Awareness about term and conditions of loan
Yes
No
38%
62%
INTERPRETATIONIn this pie chart it is very much clear that62% respondents know all
terms and conditions of the loan, 38% respondents had not known properly about all terms and
conditions of the loan.
5. Are you satisfy with the interest rate charges by your bank?
Table 5.1.5
RESPONCE
A. Strongly agree
NO. OF RESPONDENTS
18
%AGE
36%
| 70
15
10
7
50
B. Agree
C. Strongly disagree
D. Disagree
TOTAL
30%
20%
14%
100 %
14%
Strongly agree
36%
Agree
Strongly disagree
Disagree
20%
30%
INTERPRETATIONIn this pie chart it is very much clear that36% respondents are
strongly agreed by interest rate charges by bank, 30% respondents are agreed by interest rate
charges by bank, 20% respondents are strongly disagreed by interest rate charges by bank,
14% respondents are disagreed by interest rate charges by bank.
RESPONCE
A. Strongly agree
B. Agree
NO. OF RESPONDENTS
20
%AGE
40%
12
24%
| 71
C. Strongly disagree
D. Disagree
TOTAL
11
22%
14%
50
100 %
14%
Strongly agree
Agree
Strongly
disagree
40%
Disagree
22%
24%
INTERPRETATION In this pie chart it is very much clear those 40% respondents
Strongly agree that bank loan processing is fast, 24% respondents agree that bank loan
processing is fast, 22% respondents strongly disagree that bank loan processing is fast, 14%
respondents disagree that bank loan processing is fast.
7. Do you satisfy with the after loan services provided by your bank are
Best as compare to other bank?
Table 5.1.7
RESPONCE
NO. OF RESPONDENTS
%AGE
A. Strongly agree
24
48%
| 72
B. Agree
10%
C. Strongly disagree
16
32%
D. Disagree
10%
TOTAL
50
100 %
Agree
Strongly disagree
disagree
10%
48%
32%
10%
INTERPRETATIONIn this pie chart it is very much clear that48% respondents are
strongly agreed by after loan services of the bank, 10% respondents are agreed by after loan
services of the bank, 32% respondents are strongly disagreed by after loan services of the bank,
10% respondents are disagreed by after loan services of the bank.
RESPONCE
A. Yes
B. No
TOTAL
NO. OF RESPONDENTS
29
21
50
%AGE
58%
42%
100 %
| 73
No
42%
58%
INTERPRETATIONIn this pie chart it is very much clear that58% respondents said that
loan cost is appropriate according to their demand, 42% respondents said that loan cost is not
appropriate according to their demand.
RESPONCE
A. Yes
B. No
TOTAL
NO. OF RESPONDENTS
31
19
50
%AGE
62%
38%
100 %
| 74
30%
20%
10%
0%
Yes
No
INTERPRETATIONIn this chart it is very much clear that 62% respondents satisfied with
the employee behavior of the bank, 38% respondents not satisfied with the employee behavior of
the bank.
10. Does the bank give any discount upon loan services?
Table 5.1.10
RESPONCE
A. Yes
B. No
TOTAL
NO. OF RESPONDENTS
21
29
50
%AGE
42%
58%
100 %
| 75
40%
30%
20%
10%
0%
Yes
No
INTERPRETATIONIn this chart it is very much clear that 42% respondents said that bank
give discount upon loan services and 58% respondents said that bank does not give any discount
upon loan services.
11. Are you satisfy by the time taken in sanctioning the loan?
Table 5.1.11
RESPONCE
NO. OF RESPONDENTS
%AGE
A. Yes
32
64%
18
36%
50
100 %
B. No
TOTAL
| 76
NO; 36%
YES; 64%
INTERPRETATIONIn this pie chart it is very much clear that 64% respondents are
satisfied by the time taken in sanctioning the loan, 36% respondents are not satisfied by the time
taken in sanctioning the loan.
12. Have you face any difficulty during taking the loan?
Table 5.1.12
RESPONCE
NO. OF RESPONDENTS
%AGE
A. Yes
19
38%
31
62%
50
100 %
B. No
TOTAL
40%
30%
20%
10%
0%
Yes
No
INTERPRETATIONIn this chart it is very much clear that 38% respondents face difficulty
during taking the loan, 62% respondents does not face any difficulty during taking the loan.
13. Which grade you want to give loan schemes of your bank?
Table 5.1.13
RESPONCE
NO. OF RESPONDENTS
%AGE
A. Excellent
20
40%
B.Good
18
36%
C. Average
14%
D.Blow average
10 %
TOTAL
50
100 %
Analysis:-Figure 5.1.13
| 78
Excellent
Good
INTERPRETATION
Average
Blow average
excellent grade of the bank loan schemes,36% respondents give good grade to the bank loan
schemes, 14% respondents give average grade to the bank loan schemes, 10% respondents give
below average grade to the bank loan schemes.
1. From how many years you are associated with this bank?
Table 5.2.1
RESPONCE
10-20
NO. OF RESPONDENTS
10
%AGE
20 %
20
40 %
20
40 %
| 79
50
TOTAL
100 %
INTERPRETATION In this chart it is very much clear that 20% respondents are
associated less than 1 year, 40% respondents are associated from 1-5 years, 40% respondents are
associated from more than 5 years.
2. How do you come to know about the different loan schemes of this bank?
Table 5.2.2
RESPONCE
NO. OF RESPONDENTS
%AGE
A.
News paper
25
50 %
B.
Television
05
10 %
C.
Internet
10
20 %
D.
Other sources
10
20 %
TOTAL
50
100 %
Analysis:-Figure 5.2.2
| 80
Sources of information
20%
News paper
Television
Internet
Other sources
50%
20%
10%
INTERPRETATIONIn this pie chart it is very much clear that 50% respondents came to
know from newspaper, 10% respondents came to know from television, 20% respondents came
to know from internet, 20% respondents came to know from other resources.
RESPONCE
A. Personal loan
B. Agriculture loan
C. Home loan
D. Education loan
E. Other loan
TOTAL
NO. OF RESPONDENTS
18
12
10
06
04
50
%AGE
36%
24%
20%
12%
08%
100 %
Analysis:-Figure 5.2.3
| 81
Types of loan
40%
30%
20%
10%
0%
loa
n
th
er
O
Ed
uc
a
tio
n
loa
n
loa
n
H
om
e
loa
n
ult
ur
e
gr
ic
A
Pe
rs
on
al
loa
n
Types of loan
INTERPRETATION In this chart it is very much clear that 36% respondents taken
personal loan, 24% respondents taken agriculture loan, 20% respondents taken home loan, 12%
respondents taken education loan, 08% respondents taken other loan.
RESPONCE
A. Yes
B. No
TOTAL
NO. OF RESPONDENTS
15
%AGE
30%
35
70%
50
100 %
| 82
No
30%
70%
INTERPRETATIONIn this pie chart it is very much clear that30% respondents know all
terms and conditions of the loan, 70% respondents had not know properly about all terms and
conditions of the loan.
5. Are you satisfy with the interest rate charges by your bank?
Table 5.2.5
RESPONSE
A. Strongly agree
B. Agree
C.Strongly disagree
D. Disagree
TOTAL
NO. OF RESPONDENTS
08
12
18
12
50
%AGE
16%
24%
36%
24%
100 %
| 83
24%
Strongly agree
Agree
16%
Strongly disagree
Disagree
24%
36%
INTERPRETATIONIn this pie chart it is very much clear that 16% respondents are
strongly agreed by interest rate charges by bank, 24% respondents are agreed by interest rate
charges by bank, 36% respondents are strongly disagreed by interest rate charges by bank,
24% respondents are disagreed by interest rate charges by bank.
RESPONCE
A. Strongly agree
B. Agree
C. Strongly disagree
D. Disagree
TOTAL
NO. OF RESPONDENTS
08
10
27
05
50
%AGE
16%
20%
54%
10%
100 %
| 84
10%
Strongly agree
Agree
16%
Strongly disagree
Disagree
20%
54%
INTERPRETATION In this pie chart it is very much clear those 16% respondents
Strongly agree that bank loan processing is fast, 20% respondents agree that bank loan
processing is fast, 54% respondents strongly disagree that bank loan processing is fast, 10%
respondents disagree that bank loan processing is fast.
7. Do you satisfy with the after loan services provided by your bank are
Best as compare to other bank?
Table 5.2.7
RESPONCE
NO. OF RESPONDENTS
%AGE
A. Strongly agree
09
18%
B. Agree
15
30%
C. Strongly disagree
10
20%
D. Disagree
16
32%
TOTAL
50
100 %
| 85
Agree
32%
Strongly disagree
disagree
18%
30%
20%
INTERPRETATIONIn this pie chart it is very much clear that18% respondents are
strongly agreed by after loan services of the bank, 30% respondents are agreed by after loan
services of the bank, 20% respondents are strongly disagreed by after loan services of the bank,
32% respondents are disagreed by after loan services of the bank.
RESPONCE
A. Yes
B. No
TOTAL
NO. OF RESPONDENTS
17
33
50
%AGE
34%
66%
100 %
| 86
No
34%
66%
INTERPRETATIONIn this pie chart it is very much clear that34% respondents said that
loan cost is appropriate according to their demand, 66% respondents said that loan cost is not
appropriate according to their demand.
RESPONSE
A. Yes
B. No
TOTAL
NO. OF RESPONDENTS
19
31
50
%AGE
38%
62%
100 %
| 87
30%
20%
10%
0%
Yes
No
INTERPRETATIONIn this chart it is very much clear that 38% respondents satisfied with
the employee behavior of the bank, 62% respondents not satisfied with the employee behavior of
the bank.
10. Does the bank give any discount upon loan services?
Table 5.2.10
RESPONCE
A. Yes
B. No
TOTAL
NO. OF RESPONDENTS
10
40
50
%AGE
20%
80%
100 %
| 88
50%
40%
30%
20%
10%
0%
Yes
No
INTERPRETATIONIn this chart it is very much clear that 20% respondents said that bank
give discount upon loan services and 80% respondents said that bank does not give any discount
upon loan services.
11. Are you satisfy by the time taken in sanctioning the loan?
Table 5.2.11
RESPONSE
NO. OF RESPONDENTS
%AGE
A. Yes
26
52%
24
48%
50
100 %
B. No
TOTAL
| 89
NO; 48%
YES; 52%
INTERPRETATIONIn this pie chart it is very much clear that 52% respondents are
satisfied by the time taken in sanctioning the loan, 48% respondents are not satisfied by the time
taken in sanctioning the loan.
12. Have you face any difficulty during taking the loan?
Table 5.2.12
RESPONCE
NO. OF RESPONDENTS
%AGE
A. Yes
35
70%
15
30%
50
100 %
B. No
TOTAL
40%
30%
20%
10%
0%
Yes
No
INTERPRETATIONIn this chart it is very much clear that 70% respondents face difficulty
during taking the loan, 30% respondents does not face any difficulty during taking the loan.
13. Which grade you want to give loan schemes of your bank?
Table 5.2.13
RESPONSE
NO. OF RESPONDENTS
%AGE
A. Excellent
10%
B. Good
C. Average
11
22%
14
28%
D. Blow average
20
40%
50
100 %
TOTAL
Analysis:-Figure 5.2.13
| 91
30%
20%
10%
0%
Excellent
INTERPRETATION
Good
Average
Blow average
excellent grade of the bank loan schemes,22% respondents give good grade to the bank loan
schemes, 28% respondents give average grade to the bank loan schemes, 40% respondents give
below average grade to the bank loan schemes.
CHAPTER-VI
FINDINGS AND CONCLUSION & LIMITATION OF
THE STUDY
| 92
3. Respondents related with SBI bank are more satisfied with the interest rate as compare to
PNB.
4. Loan processing of SBI bank is fast as compare to PNB.
5. Respondents related with SBI are more satisfied with the employee behavior as compare
to PNB.
6. Majority of the respondents of PNB bank are disagreed with after loan services of the
bank and Majority of the respondents of SBI are strongly agreed with after loan services
of the bank.
7. Majority of the respondents of PNB are not satisfied with cost of loan appropriate
according to their demand. Majority of the respondents of SBI satisfied with cost of loan
appropriate according to their demand.
8. Respondents related with SBI are more satisfied with the time taken in sanctioning the
loan as compare to PNB.
9. Majority of the respondents related with SBI does not faces any difficulty during taking
the loan as compare to PNB.
10. Majority of the respondents related with SBI bank gives excellent grade to the bank loan
schemes and majority of the respondents related with PNB give below average grade to
the bank loan schemes.
During this research project I fill the questionnaires 100 Respondents50 respondents from SBI
and 50 from PNB bank in Shimla area. Respondents related with SBI bank know all terms and
conditions of the loan as compare to PNB. Majority of the respondents related with SBI not face
any difficulty during taking the loan as compare to PNB . Majority of the respondents related
with SBI give excellent grade of the bank loan schemes and majority of the respondents related
with PNB give blow average grade of the bank loan schemes. Respondents related with SBI
more satisfy with the time taken in sanctioning the loan as compare to PNB.
Majority of the respondents of both banks said that bank does not give any discount upon loan
services. Majority of the respondents of PNB not satisfied with cost of loan is appropriate
| 93
according to their demand. Majority of the respondents of SBI satisfied with cost of loan is
appropriate according to their demand. Respondents related with SBI is more satisfy with the
employee behavior as compare to PNB. Respondents related with SBI more satisfy with the
interest rate as compare to PNB. Loan processing of SBI is fast as compare to PNB.
From all this I conclude that SBI provide good services as compare to PNB and many peoples
are very satisfied from SBI.
Although best of the efforts were made to conduct a prefect survey but still it faces certain
limitation. Following were certain limitation of this project.
1. The survey was conducted on 100 respondents.
2. Some of the respondents did not answer all the questions, which could hamper the final
results to a certain extent.
3. The study confines itself to the respondents of SHIMLA region only. Hence findings
would not be relevant to other cities.
4. The sample size is small due to the specified reasons.
5. Findings are based on sample survey.
6. The sample plan is too small to give the research a wide coverage with reference to
their opinion.
7. The respondents are not interested to give information.
8. The educational & awareness level of the respondents with respect to the questionnaires
is low.
9. Not Efficient time to complete it at large level.
10. Lack of Experience in the field of Research.
| 94
CHAPTER VII
RECOMMENDATIONS,
SUGGESTIONS AND FUTURE SCOPE
2.
3.
4.
5.
6.
CHAPTER VIII
BIBLIOGRAPHY /REFERENCE
BIBLIOGRAPHY /REFERENCES
Books
1. Kothari C.R (2004) Research methodology: Method and tech, second edition, new age
international publisher, New Delhi.
2. Research Methodology, ICFAI publication.
3. S.P. Gupta Statistics Book K publication.
Internet
1. www.statebankofindia.com
2. http://en.wikipedia.org/wiki/State_Bank_of_India
3. http://www.indiahousing.com/sbi-bank/loans.html
4. www.wikipedia.org/pnb
| 96
5. www.wikipedia.org/sbi
6. website@pnb.co.in
ANNEXURE
QUESTIONNAIRE
I Rohit Kumar conducting a research on the topic Comparative Analysis
of State Bank of India and Punjab National Bank and
I request you to fill the questionnaire. This will take 3-5 minutes of your time .I
promise to keep the information confidential.
Demographic Information
Name
...............................................................
Qualification .......................................................
Age
Gender
15-25
26-35
Male
Occupation - Student
House wife
36-45
Above 45
Female
Serviceman
Businessman
Government employee
| 97
Other
Place .....................................
1. From how many years you are associated with this bank?
a. Less than 1 year
b. 1-5
b.Television
c.Internet
d.Other resources
b. Agriculture loan
d. Education loan
d. disagree
a. Strongly agree
b. Agree
c. Strongly Disagree
d. Disagree
7. Do you satisfy with the after loan services provided by your bank are
Best as compare to other bank?
a. Strongly agree b. Agree
c. Strongly Disagree
d. Disagree
b. No
| 99
a. Excellent
b. Good
c. Average
d. Blow average
| 100