PROJECT REPORT

ON

STATE BANK OF
INDIA

ACKNOWLEDGEMENT
This research was made possible as per the requirement of
the .course under
... I take the opportunity to
place and record my deep sense of gratitude to all who have
helped me in completion of my study.
I am deeply indebted to my mentor and guide
..
I would be failing in my duties if I dont express my sincere
gratitude to my parents for
their constant support and guidance. I also humbly thanks
my friend and batch mates for his generous participation in
the data collection process.

CONTENTS

Declaration
Acknowledgement

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
2.1 Interpretation of PIE and BAR chart.
Chapter 3
Conclusions
3.1 Conclusion/Findings
3.2 Recommendations
References

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, fixed
assets 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.
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
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.

10

Charge:
An asset offered to the creditor (who lends the money) becomes a
security 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.

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

11

Introduction to State Bank of India:

Evolution of SBI:
Born as Bank of Calcutta (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 Stateassociated 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.

12

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 Calcutta in
Calcutta, 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
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 statepartnered
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
13

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.

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

14

Gross NPA Ratio

Net NPA Ratio
Capital Adequacy Ratio
Return on Average Assets

3.04
1.78
13.47
1.01

AS AT 31ST MARCH 2009

No. of Branches
No. of Foreign Offices
No. of Branches on CBS

10,186
84
All Branches

No. of employees
No. of ATMs

1,79,205
9,000

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

financial supermarket.
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.

15

STATE BANK GROUP:

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.

16

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

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.

17

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.

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 typical
mass-market banking where
individual
customers
use
local 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 has
become very difficult in this segment too. Bankers today are offering various
sops to attract the potential customers.

18

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:
Personal banking, i.e. banking products and services for consumers
including 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 maximum
turnover of EUR 10 million annually and including services such as current
accounts, 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:

19

 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 for
most 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 a
specified 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 the
bulk of the payments they make and receive.
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 the
credit element of a loan enabling SMEs to draw down finance
and the flexibility of a current account for making and receiving
payments.
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
20

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.

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.
21

The core retail banking business of deposit taking will be sheltered form webbased 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.
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 convenient
physical 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.

22

With low bank fees for individual transactions and relatively small bank
deposits, the opportunity cost in terms of interest income for customers is
not 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
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.

23

Banks could introduce various incentives to the persuade customers to forego

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

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-

24

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 Internetand 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.
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.

25

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
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.

26

(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.

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 to
switch suppliers, hence making price competition less efficient.

27

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 over
the 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 and
activity 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
28

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).

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
29

 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

Challenges:
Sustaining Customer loyalty
NPA reduction & Fraud prevention
Avoiding Debt Trap for customers
Bringing Rural masses into mainstream banking

30

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?

31

 The destination we want to reach is our vision.

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.

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.
32

 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

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 :

33

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.

34

ANALYSIS
35

OF
THE DATA
COLLECTED
THROUGH
THE
QUESTIONNAIR
E
TABLE-I
The given below BAR graph shows the response of 100 customer.
SERVICES EXPECTED FROM SBI

36

QUICK
RESPONSE

38
37

GOOD CUSTOMER RELATION

25
EXTRA FACILITY FOR EXISTING CUSTOMER

INTERPRETATION
Out of 100 customers, 38 of them said that they expect QUICK
RESPONSE from the SBI bank, 37 said they expect GOOD CUSTOMER
RELATION and 25 customers said that they expect EXTRA FACILITY
FOR EXISTING CUSTOMER.

TABLE-II
The given below Bar chart shows the SATISFACTION LEVEL OF
CUSTOMER AFTER AVAILING LOAN
SATISFACTION
AVAILING LOAN
SATISFIED
NORMAL
DISSATISFIED

AFTER
42
34
24

37

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.

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
38

YES
NO

68%
32%

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.

TABLE-IV
The given Bar graph shows THE INFLUENCING FACTOR
FOR TAKING LOAN FROM SBI
INFLUENCING FACTOR FOR LOAN FROM
SBI
ADVERTISEMENT
FRIENDS
EASY AVAILABILITY OF LOAN
TRUST

26
20
22
32

39

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:

40

28%

30%

Excellent
Good
Average

42%

Interpretation:
Out of 100 customers 42 peoples said good, 30 people said
excellent and rest 28 people said average about the processing
procedure while availing the loan.

TABLE-VI
41

The given Pie chart shows the co-operation of the

bank employees in processing and helping in
documentation:

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.

42

TABLE-VII

The given Pie chart shows the interest rate charged

upon the loan available:

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

43

44

45

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.

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FINDINGS
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.

48

49

QUESTIONNAIRE

Dear Sir/ Madam,

As part of my BBA curriculum, I, Abhishek Dwivedi, am
conducting a market research regarding the marketing of retail banking
for which I need your personal views regarding banking products &
services in shape of a questionnaire designed by me. The data being
collected are solely for academic purpose. I request you to kindly extend
your co-operation.
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
Above 1000000

b) 200000-400000

c) 400000-1000000

d)

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

A) Quick Response
C) Extra Facility for Existing Customer

B) Good Customer Relation

50

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?
A) Excellent

B) Good

C) Average

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

B) Good

C) Average

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

51

References:
www.sbi.co.in
Banking Law and Practices (S.N.Maheswari)
The Economic Times

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