AN ORGANIZATION STUDY AT STATE BANK OF INDIA

AND
GROWTH IN NEW BRANCHES OPENED IN RURAL/SEMI URBAN BRANCHES
VIS A VIS
THE POTENTIAL/SEMI URBAN AREAS VIS A VIS THEIR POTENTIAL
Submitted in partial fulfillment of the requirements for the award of the Degree of
MASTER OF INTERNATIONAL BUSINESS
NITISH BHARDWAJ
Reg.No-85413035

Cochin University of Science and Technology

Faculty Guide: Dr. RUPERT SEBASTIAN MAMPILLY

Associate Professor
School of Management Studies,
Kochi682022

Declaration

I do hereby declare that the organization study at STATE BANK OF INDIA

and project on Growth in new branches opened in rural/semi urban branches vis
a vis the potential/semi urban areas vis a vis their potential entitled is a
bonafide record of the study conducted by me, under the supervision of Mr. N.J.
Mathew, project guide in STATE BANK OF INDIA and Dr.Rupert Sebastin
Mampally, Professor School of Management Studies during the academic year
2013-2015 in partial fulfilment of requirement for the award of the degree of
Master of Business Administration and that the report has not been submitted
elsewhere in connection with any other academic or non-academic purposes.
Nitish Bhardwaj
Place:
Date:

CERTIFICATE OF COMPLETION

This is to certify that Mr. Nitish Bhardwaj, School Of Management Studies, Cochin
University of Science and Technology have completed the project work assigned by Regional
Business Office, State Bank of India, Ernakulam on the topic GROWTH IN NEW
BRANCHES OPENED IN RURAL/SEMI URBAN BRANCHES VIS A VIS THE
POTENTIAL/SEMI URBAN AREAS VIS A VIS THEIR POTENTIAL started on 06th of
June for a period Of 45 days under the Guidance of Sri N.J. Mathew, Manager, Small
Medium Enterprise(SME) Branch.

N.J. Mathew
MANAGER
Date:

SME BRANCH

ACKNOWLEDGEMENT

Behind every mans fruitful endeavor like advice, guidance & inspiration from all possible
sources lay the efforts of all those worthy people who lend their help directly or indirectly.
First of all I thank Almighty God for his mercy and love which kept me in good health and sound
mind and helped me to complete the project work successfully.
I extend my sincere gratitude to Prof (Dr) BHASI, Director, School Of Management Studies
for giving me an opportunity for doing the project.
I am very thankful to Dr. Rupert Sebastian Mampilly, Project guide, for the guidance and
comments I received valuable throughout my project. I have greatly benefited by his support
and
encouragement.
I express my sincere gratitude to Mr.Jaz, HR MANAGER, RBO SBI, for giving me the
opportunity to undergo my training in such a prestigious company.
Also I express my heartfelt gratitude to Mr.N.J.Mathew, Manager- SBI, for his continuous
advice and support during the course of the project.
I sincerely thank my parents, relatives and friends for their encouragement and support during
the study. Last but not the least I express my gratitude to everyone who directly and indirectly
helped me for completing the project in time and thereby making it a success.

Nitish Bhardwaj
SMS, Cochin University.

TABLE OF CONTENTS

Sl. No

Particulars

Page No.

Introduction

Industry Profile

Organization Profile

Objectives and responsibilities assigned

10

Frame Work of the study

11

Specific Objectives, Scope and Limitations.

16

Methodology and Analysis

18

Findings and suggestions

39

Bibliography

41

10

EXECUTIVE SUMMARY

This Project is all about the growth in new branches opened in Rural/Semi Urban branches .
This project study is conducted on a survey basis and collects information regarding the
deposits and advances of the semi urban branches nearby. Not only the deposits and
advances, but also the number of accounts that has opened in that semi urban branch. As
these semi urban branches have newly commenced, the data(deposits & advances) was taken
quarterly. These are the 5 semi urban branches :-

Branch Code

Opening Date

Branch Name

Population

Address

15789

Saturday,
February 09,
2013

Smart City

Semi Urban

16860

Saturday,
September 28,
2013

Njarakkal

Semi Urban

16859

Wednesday,
October 30,
2013

Kalady

Semi Urban

SMART CITY
HEERA CYBER
VIEWS INFOPARK EDACHIR ROAD
THENGODE PO
KOCHI
MENACHERRY
BUILDING
PERUMPILLY BUS
STOP NJARAKKAL
S & S TOWERS
NEAR KALADY
SANSKRIT
UNIVERSITY
MALAYATTOR
ROAD KALADY

Semi Urban

VILAKATHU BLDG
THANGALAM JN
KOTHAMANGALAM,
ERNAKULAM

16893

Saturday,
September 14,
2013

PBB,
Kothamangalam

INDUSTRY PROFILE

THE BANK

The word bank means an organization where people and business can invest or borrow
money; change it to foreign currency etc. According to Halsbury, A Banker is an individual,
Partnership or Corporation whose sole pre-dominant business is banking, that is the receipt of
money on current or deposit account, and the payment of cheque drawn and the collection of
cheque paid in by a customer.

OBJECTIVES OF INTERNSHIP
Summer internship was done at State Bank Of India with the following objectives:

To get familiarized with working of the Organization.

To study the functions and certain undertaking being performed in the business
organization.
To familiarize with the different departments in the organization and their functioning.
To understand how the key business processes are carried out in the organizations
given their competitive environmental realities
To analyse the product and product mix.
To identify the product attributes.
To analyse the marketing management of the company
To develop a fair understanding of a current and operationally relevant problem that
needs managerial attention and
To relate theory with practice and realize that both theory and practice are
complementary
To evaluate the companys present position and the future growth plan for attain
competition edge.

METHODOLOGY AND ANALYSIS

RESEARCH DESIGN
The study conducted is descriptive and analytical in nature

SAMPLING TECHNIQUE
Convenience Sampling was employed

SAMPLE SIZE
Sample size is 5

SOURCES OF DATA:

PRIMARY DATA
Primary data are the datas freshly gathered for a specific purpose. Primary
data is collected through interview with employee, departmental heads,
administrative staffs and others. So that it is most reliable and accurate than
any other data. The following are the primary data collected for the study.

Interview method
The primary data is collected from individual employees and manager of
different sections of the organization by taking interview with them.

Observation method
There was a keen sense of observation followed during the study period to
follow the various functions of the company and how they are integrated with
each other.
Questionnaire method is adopted for getting reliable information

SECONDARY DATA

The secondary data was collected through documents given by the bank and from
various websites and books.
TOOLS FOR DATA COLLECTION
Questionnaire was used for data collection as it has the following advantages:
It will help to remove the suspicion regarding the nature of the enquiry or
meaning of any questions or any terms used as the researcher is personally
present
Response and cooperation for the collection of correct information could be facilitated
Information would be more reliable due to personal contact.

LIMITATIONS OF THE STUDY

Concealment of confidential matter.

The conclusion and inference drawn are on the basis of the report received
from interviews and it may be collected by personal bias.
Period of study is limited.
The report suffers from the following the limitation of meeting only the
departmental heads because of lack of permission to interact with other
people.
Transportation difficulties.

INDUSTRY OVERVIEW

History:
Banking in India has its origin as carry as the Vedic period. It is believed that the transition
from money lending to banking must have occurred even before Manu, the great Hindu jurist,
who has devoted a section of his work to deposits and advances and laid down rules relating to
the interest. During the mogul period, the indigenous bankers played a very important role in
lending money and financing foreign trade and commerce. During the days of East India
Company, it was to turn of the agency houses top carry on the banking business. The general
bank of India was the first joint stock bank to be established in the year 1786.The others which
followed were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustan is reported
to have continued till 1906, while the other two failed in the meantime. In the first half of the
19th Century the East India Company established three banks; The Bank of Bengal in 1809,
The Bank of Bombay in 1840 and The Bank of Madras in 1843.These three banks also known
as presidency banks and were independent units and functioned well. These three banks were
amalgamated in 1920 and The Imperial Bank of India was established on the 27th Jan 1921,
with the passing of the SBI Act in 1955, the undertaking of The Imperial Bank of India was
taken over by the newly constituted SBI. The Reserve Bank which is the Central Bank was
created in 1935 by passing of RBI Act 1934, in the wake of swadeshi movement, a number of
banks with Indian Management were established in the country namely Punjab National Bank
Ltd, Bank of India Ltd, Canara Bank Ltd, Indian Bank Ltd, The Bank of Baroda Ltd, The
Central Bank of India Ltd .On July 19th 1969, 14 Major Banks of the country were nationalized
and in 15th April 1980 six more commercial private sector banks were also taken over by the
government. The Indian Banking industry, which is governed by the Banking Regulation Act
of India 1949, can be broadly classified into two major categories, non-scheduled banks and
scheduled banks. Scheduled Banks comprise commercial banks and the co-operative banks.

The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969
and resulted in a shift from class banking to mass banking. This in turn resulted in the
significant growth in the geographical coverage of banks. Every bank had to earmark a min
percentage of their loan portfolio to sectors identified as priority sectors the manufacturing
sector also grew during the 1970s in protected environments and the banking sector was a
critical source. The next wave of reforms saw the nationalization of 6 more commercial banks
in 1980 since then the number of scheduled commercial banks increased four- fold and the
number of bank branches increased to eight fold.

After the second phase of financial sector reforms and liberalization of the sector in the early
nineties. The PSBs found it extremely difficult to complete with the new private sector banks

and the foreign banks. The new private sector first made their appearance after the guidelines
permitting them were issued in January 1993.

The Indian Banking System:

Banking in our country is already witnessing the sea changes as the banking sector seeks new
technology and its applications. The best port is that the benefits are beginning to reach the
masses. Earlier this domain was the preserve of very few organizations. Foreign banks with
heavy investments in technology started giving some Out of the world customer services.
But, such services were available only to selected few- the very large account holders. Then
came the liberalization and with it a multitude of private banks, a large segment of the urban
population now requires minimal time and space for its banking needs.
Automated teller machines or popularly known as ATM are the three alphabets that have
changed the concept of banking like nothing before. Instead of tellers handling your own cash,
today there are efficient machines that dont talk but just dispense cash. Under the

Reserve Bank of India Act 1934, banks are classified as scheduled banks and non-scheduled
banks. The scheduled banks are those, which are entered in the Second Schedule of RBI Act,
1934. Such banks are those, which have paid- up capital and reserves of an aggregate value of
not less then Rs.5 lacs and which satisfy RBI that their affairs are carried out in the interest of
their depositors. All commercial banks Indian and Foreign, regional rural banks and state cooperative banks are Scheduled banks. Non Scheduled banks are those, which have not been
included in the Second Schedule of the RBI Act, 1934.

The organized banking system in India can be broadly classified into three categories: (i)
Commercial Banks (ii) Regional Rural Banks and (iii) Co-operative banks. The Reserve Bank
of India is the supreme monetary and banking authority in the country and has the
responsibility to control the banking system in the country. It keeps the reserves of all
commercial banks and hence is known as the Reserve Bank.

Current scenario:Currently, the overall banking in India is considered as fairly mature in terms of supply,
product range and reach - even though reach in rural India still remains a challenge for the
private sector and foreign banks. Even in terms of quality of assets and

Capital adequacy, Indian banks are considered to have clean, strong and transparent balance
sheets - as compared to other banks in comparable economies in its region. The Reserve Bank
of India is an autonomous body, with minimal pressure from the Government

With the growth in the Indian economy expected to be strong for quite some time especially in
its services sector, the demand for banking services especially retail banking, mortgages and
investment services are expected to be strong. Mergers & Acquisitions., takeovers, are much
more in action in India.

One of the classical economic functions of the banking industry that has remained virtually
unchanged over the centuries is lending. On the one hand, competition has had considerable
adverse impact on the margins, which lenders have enjoyed, but on the other hand technology
has to some extent reduced the cost of delivery of various products and services.

Bank is a financial institution that borrows money from the public and lends money to the
public for productive purposes. The Indian Banking Regulation Act of 1949 defines the term
Banking Company as "Any company which transacts banking business in India" and the term
banking as "Accepting for the purpose of lending all investment of deposits, of money
from the public, repayable on demand or otherwise and withdrawal by cheque, draft or
otherwise".

Banks play important role in economic development of a country, like:

Banks mobilise the small savings of the people and make them available for productive
purposes.

Promotes the habit of savings among the people thereby offering attractive rates of interests
on their deposits.

Provides safety and security to the surplus money of the depositors and as well provides a
convenient and economical method of payment.

Banks provide convenient means of transfer of fund from one place to another.

Helps the movement of capital from regions where it is not very useful to regions where it
can be more useful.

Banks advances exposure in trade and commerce, industry and agriculture by knowing
their financial requirements and prospects.

Bank acts as an intermediary between the depositors and the investors. Bank also acts as
mediator between exporter and importer who does foreign trades.

Thus Indian banking has come from a long way from being a sleepy business institution to a
highly pro-active and dynamic entity. This transformation has been largely brought about by
the large dose of liberalization and economic reforms that allowed banks to explore new
business opportunities rather than generating revenues from conventional streams (i.e.
borrowing and lending). The banking in India is highly fragmented with 30 banking units
contributing to almost 50% of deposits and 60% of advances.

After preparation of the financial statements, one may be interested in knowing the
position of an enterprise from different points of view. This can be done by analyzing the
financial statement with the help of different tools of analysis such as ratio analysis,
funds flow analysis, cash flow analysis, comparative statement analysis, etc. Here I have
done financial analysis by ratios. In this process, a meaningful relationship is established
between two or more accounting figures for comparison.

Financial ratios are widely used for modeling purposes both by practitioners and
researchers. The firm involves many interested parties, like the owners, management,
personnel, customers, suppliers, competitors, regulatory agencies, and academics, each
having their views in applying financial statement analysis in their evaluations.
Practitioners use financial ratios, for instance, to forecast the future success of companies,
while the researchers' main interest has been to develop models exploiting these ratios.
Many distinct areas of research involving financial ratios can be discerned. Historically
one can observe several major themes in the financial analysis literature. There is
overlapping in the observable themes, and they do not necessarily coincide with what
theoretically might be the best founded areas.

Financial statements are those statements which provide information about profitability
and financial position of a business. It includes two statements, i.e., profit & loss a/c or
income statement and balance sheet or position statement.

The income statement presents the summary of the income earned and the expenses
incurred during a financial year. Position statement presents the financial position of
the business at the end of the year.

.
to

Before understanding the meaning of analysis of financial statements, it is necessary

understand the meaning of analysis and financial statements.

alysis means establishing a meaningful relationship between various items of the

two financial statements with each other in such a way that a conclusion is drawn.
By financial statements, we mean two statements- (1) profit & loss a/c (2) balance
sheet. These are prepared at the end of a given period of time. They are
indicators of profitability and financial soundness of the business concern.
Thus, analysis of financial statements means establishing meaningful relationship
between various items of the two financial statements, i.e., income statement and
position statement
Parties interested in analysis of financial statements
Analysis of financial statement has become very significant due to widespread
interest of various parties in the financial result of a business unit. The various persons
interested in the analysis of financial statements are:Short- term creditors
They are interested in knowing whether the amounts owing to them will be paid
as and when fall due for payment or not.
Long term creditors
They are interested in knowing whether the principal amount and interest thereon

will be paid on time or not.

Shareholders
They are interested in profitability, return and capital appreciation.
Management
The management is interested in the financial position and performance of the
enterprise as a whole and of its various divisions.
Trade unions
They are interested in financial statements for negotiating the wages or salaries
or bonus agreement with management.
Taxation authorities
These authorities are interested in financial statements for determining the tax liability.
Researchers
They are interested in the financial statements in undertaking research in business
affairs and practices.
Employees
They are interested as it enables them to justify their demands for bonus and
increase in remuneration.
You have seen that different parties are interested in the results reported in the
financial statements. These results are reported by analyzing financial statements
through the use of ratio analysis.

STATE BANK OF INDIA

Type-

Public (BSE,
NSE:SBI) &
(LSE:SBID)

Founded-

Calcutta, 1806 (as Bank of Calcutta)

Corporate

Headquarter Centre,
sMadam
Cama Road,
Mumbai 400 021 India

Key people-

Om Prakash Bhatt, Chairman

State Bank of India (SBI) (LSE: SBID) is the largest bank in India. It is also,
measured by the number of branch offices and employees, the second largest bank in the
world. The bank traces its ancestry back through the Imperial Bank of India to the
founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in
the Indian Subcontinent. The Government of India nationalized the Imperial Bank of
India in 1955, with the Reserve Bank of India taking a 60% stake, and renamed it the
State Bank of India. In 2008, the Government took over the stake held by the Reserve
Bank of India.

SBI provides a range of banking products through its vast network in India and
overseas, including products aimed at NRIs. With an asset base of $126 billion and its
reach, it is a regional banking behemoth. SBI has laid emphasis on reducing the huge
manpower through Golden handshake schemes and computerizing its operations.

The State Bank Group, with over 16000 branches, has the largest branch network
in India. It has a market share among Indian commercial banks of about 20% in deposits
and advances.
International presence

Regional office of the State Bank of India (SBI), India's largest bank, in Mumbai.

The government of India is the largest shareholder in SBI.The bank has 52

branches, agencies or offices in 32 countries. It has branches of the parent in Colombo,
Dhakka, Frankfurt, Hong Kong, Johannesburg, London and environs, Los Angeles, Male
in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. It has offshore banking
units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and
Cape Town.

SBI operates several foreign subsidiaries or affiliates. In 1990 it established an

offshore bank, State Bank of India (Mauritius). It has two subsidiaries in North America,
State Bank of India (California), and State Bank of India (Canada). In 1982, the bank
established its California subsidiary, which now has seven branches. The Canadian
subsidiary was also established in 1982 and also has seven branches, four in the greater
Toronto area, and three in British Columbia. In Nigeria, it operates as INMB Bank.
This bank was established in 1981 as the Indo-Nigerian Merchant Bank and received
permission in 2002 to commence retail banking. It now has five branches in Nigeria. In
Nepal SBI owns 50% of Nepal SBI Bank, which has branches throughout the country. In
Moscow SBI owns 60% of Commercial Bank of India, with Canara Bank owning the
rest. In Indonesia it owns 76% of PT Bank Indo Monex. State Bank of India already
has a branch in Shanghai and plans to open one up in Tianjin.

BOARD OF DIRECTORS

Shri O.P. Bhatt(Chairman)

Shri S.K. Bhattacharyya(MD & CC&RO)

Shri Suman Kumar Bery

Dr. Ashok Jhunjhunwala

Shri Dileep C. Choksi

Shri S. Venkatachalam

Dr. Deva Nand Balodhi

Prof. Mohd. Salahuddin Ansari

Dr.(Mrs.) Vasantha Bharucha

10

Shri Arun Ramanathan

11

Smt. Shyamala Gopinath

Fastest Growing Segment :-

Business Banking

Current Account & Services

Business Loans

Trade services

Advisory Services

Microfinancing In Rural & Semi Urban Areas.

DIFFERENT PRODUCTS OF SBI:

DEPOSIT

LOANS

CARDS

DIFFERENT
CREDIT CARDS
SBI
International
cards

Savings
Account

Home
Loans

Consumer
Cards

Life Plus
Senior
Citizens
Savings
Account

Loan
Against
Property

Credit Card

SBI Gold
cards

Fixed
Deposits

Personal
Loans

Travel Card

SBI Gold
Master cards

Security

Car Loan

Debit Cards

Your City
Your Cards

Recurring
Deposits

Loans
against
Securities

Commercial
Cards

Tax-Saver
Fixed Deposit

Two
Wheeler

Corporate
Cards

Partnership
Cards

Salary
Account

Preapproved
Loans

Prepaid Card

Deposits

Advantage
Woman
Savings
Account

Retail
Asset

Purchase Card

Rural Savings
Account

Farmer
Finance

Distribution
Cards

People's
Savings
Account

Business
Installment
Loans

Business Card

Freedom
Savings
Account

Flexi Cash

Merchant
Services

SBI Employee
Cards

SBI
Advantage
Cards

COMPETITORS

Competitors and other players in the field:Top Performing Public Sector Banks
Andhra Bank
Allahabad Bank
Punjab National Bank
Dena Bank
Vijaya Bank
Top Performing Private Sector Banks
HDFC Bank
ICICI Bank
AXIS Bank
Kotak Mahindra Bank
Centurion Bank of Punjab

Top Performing Foreign Banks

Citibank
Standard Chartered
HSBC Bank
ABN AMRO Bank
American Express

SWOT ANALYSIS

Strength/ Opportunities:

The growth for SBI in the coming years is likely to be fueled by the following factors:

Continued effort to increase low cost deposit would ensure improvement in NIMs and hence
earnings.
Growing retail & SMEs thrust would lead to higher business growth.
Strong economic growth would generate higher demand for funds pursuant to higher corporate
demand for credit on account of capacity expansion.

Weakness/ Threats:

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

SBI is currently operating at a lowest CAR. Insufficient capital may restrict the growth
prospects of the bank going forward.
Stiff competition, especially in the retail segment, could impact retail growth of SBI and hence
slowdown in earnings growth.
Contribution of retail credit to total bank credit stood at 26%. Significant thrust on growing
retail book poses higher credit risk to the bank.
Delay in technology upgradation could result in loss of market shares.

 Management indicated a likely pension shortfall on account of AS-15 to be close to

Rs50bn.
Slow down in domestic economy would pose a concern over credit off-take thereby impacting
earnings growth.

ANALYSIS OF DATA :-

GRAPHICAL REPRESENTATION OF DATA

Q1. On which bank do you depend for your regular transaction?

SBI

60 % (1200)

ICICI

33 % (660)

HDFC
OTHER

5% (100)
2% (40)

TOTAL NO. OF PEOPLE

2000

RESPONSES OF PEOPLE IN %
5% 2%

33%
60%

SBI
ICICI
HDFC
OTHER

It has been observed that approximately 60% correspondents are using the service of SBI
for their daily transaction, around 33% of people are using ICICI Bank for their transaction
and only 5% & 2% of people are using HDFC & other Bank service respectively in
Bhubaneswar. It also shows that SBI have the highest market position in Bhubaneswar as
per my sample.

Q2. Are you aware of products & services provided by SBI?

YES

85% (1700)

NO

15% (300)

Total No. of People

2000

NO
15%

YES
85%

From the above data it is clear that most of the customers (around 85%) of Bhubaneswar
have the idea about the product & services of SBI, the rest 15% have the idea about the
product they are using. In this 15% most of the people are from typical rural area (Farmers).

Q3. If yes are you aware of the advance products (Loan segments) of SBI?

YES

95%(1900)

NO

5% (100)

TOTAL NO. OF PEOPLE

2000

% OF PEOPLE
5%

YES
NO

95%

It is clear that most of the people have the idea about the advance product of SBI. Almost
all the 95% people who have the idea about the advance product are the user of SBI
product & service.

Q4. Which bank you prefer for taking loans?

85% (1800)
SBI
ICICI

7% (140)

HDFC

2% (40)

OTHER

1% (20)

TOTAL NO. OF PEOPLE

2000

Sales
2% 1%
12%
SBI
ICICI
HDFC
85%

OTHER

According to my sample size 85% of people prefer SBI for loan product, but some people
prefer ICICI, HDFC or OTHER Bank for loan because they are working with that bank & it is
easier for them to get loan from their bank & it easier for them to pay the interest because it
is less as compare to other bank because they are the employee of that bank.

Q5. If you prefer SBI for taking loan than what influence you to take Loan from SBI?

Most of the people said that they prefer SBI for taking loan because of the transparency and
the lowest interest rate for any kind of loan product. And it is easy to get loan from SBI as
compare to other bank because less paper work is require and as it is the largest govt. bank
in India and having partnership with RBI (Reserve Bank of India) and other association, it is
easier for SBI to give loan to people with a longer repayment period.

Q.6 Which loan product of SBI you have used?

HOME LOAN

47% (846)

EDUCATIONAL LOAN

20% (360)

CAR LOAN

15% (270)

PERSONAL LOAN

10% (180)

OTHER

8% (144)

TOTAL NO. OF PEOPLE

1800

Sales
10%

8%
47%

15%

HOME LOAN
EDUCATIONAL LOAN
CAR LOAN

20%

PERSONAL LOAN
OTHER

From the sample size 85% of people are using the SBI loan product. From the 1800 people
47% of people took home loan from SBI. 20% of people took education loan for their
children, 15% of people took car loan from SBI. Some of the customer took 2 type of loan
from SBI like both car & educational loan and home & car loan. 10% of people took
personal loan.

Q7. What do you feel about the services providing by SBI in advance product?

Bad

0% (0)

Satisfactory

2% (40)

Good

55% (1100)

Excellent

43% (860)

TOTAL NO. OF PEOPLE

2000

CUSTOMER PERCEPTION TOWARDS THE SERVICE PROVIDE

BY SBI IN ADVANCE PRODUCT
0% 2%
43%

BAD
SATISFACTORY

55%

GOOD
EXCELLENT

From this it is clear that the service provide by SBI in its advance product is good in
between the customer. All of them satisfy with the product provide by SBI. 55% of people
said that the service provide by SBI is good & 43% said it is excellent & just 2% of people
said that it is satisfactory.

Q8. Which features you like most in Loan segments of SBI?

LESS PAPER WORK

3% (60)

ATTRACTIVE INTEREST RATE

35% (700)

TRANSPARENCY

20% (400)

SIMPLE AND FAST PROCESSING

2% (40)

LONGER REPAYMENT PERIOD

40% (800)

TOTAL NO. OF PEOPLE

2000

FEATURES LIKE BY CUSTOMER

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
LESS PAPER WORK

ATTRACTIVE
INTEREST RATE

TRANSPARENCY

SIMPLE & FAST

PROCESSING

LONGER
REPAYMENT
PERIOD

Most of the people like the attractive interest rate & longer repayment period. Its easier for
people to repay the whole loan amount with its interest with low interest rate and with longer
repayment period.

PROJECT Findings:
It has been observed that approximately 85% correspondents are using advance
product of SBI and 15% are not using any type of advance product of SBI.
All of SBI customers are satisfied with the services provided by the bank.
Many of these customers satisfied with the low interest rate and longer repayment
period of the advance product.
Most of the customers prefer to take loan from SBI.
Approximately 43% of advance product users said that the service of SBI in advance
product is excellent.
A response from customer care is so clear & good.
Many customers have no time to call customer care so that they are not able to
know about the service & features of SBI advance product.
Most customers are shifted from other banks advance product to SBI because of
hidden charges, high interest rate, less repayment period.
Government employees are more concern than private employees for advance
product.

REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT:

LESS PAPER WORK

ATTRACTIVE INTEREST RATES
TRANSPARENCY
SIMPLE & FAST PROCESSING
LONGER REPAYMENT PERIOD
QUICK PROCESSING

Suggestion & Recommendation

Recommendation:
Customer awareness programme is required so that more people should attract
towards SBI products.
If there are any kind of hidden charges then that must disclose to customer before
giving loan to them.
SBI must take some steps so that customers can get their loan in time. Like phone
verification by customer care that one customer is got their loan on time or not .It
must be before a certain date so necessary steps can be taken.
SBI should more concern about physical verification rather than phone verification so
it will avoid fraud or cheating.
Advance product selling agents must not give any type of wrong information
regarding advance product.
For the better service new offers would be require.
SBI customer care should more concern about the fastest settlement of customer
problems.
Before deducting or charging any monetary charge SBI must consult with customer.
Agents should be trained, well educated & proper trained to convince the people
about different advance product.
It is the duty of the bank to disclose all the material facts regarding advance product,
like interest charged, repayment period, other types of charges, etc.
Special scheme should be implemented to encourage both customer and agents.

 The bank should increase the period for repayment of loan.

SBI should more focus on Retaining existing customers.
SBI must focus on Segmentation based on customer knowledge Product offering
based on customer demand.
SBI must take feedbacks of customers regarding features & services.

Suggestions given by the consumers at the time of survey:

There is more time period for repayment of education loan.
( Namrata Das )
Education loan should be providing to private college also which is not under AICTE
or any kind of University.
( Pinaki Bal )
SBI should take steps to solve customer problems immediately.
( Gopinath Mahapatra )
Agents should be trained, well educated & proper trained to convince the people
about different advance product.
(P.Anish Nath)
Loan sanction date should be according to customer convenient.
(Joytirmaya Behera)

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

Conclusion

From the analysis part it can be conclude that customers have a good respond towards SBI
advance products in Bhubaneswar. SBI is in 1st position having large number of customers
& providing good services to them. The bank has a wide customer base, so the bank should
concentrate on this to retain these customers.

In present scenario SBI is the largest advance product issuer in India. Within a very short
period of time the achievement made by SBI is excellent, what a normal bank cannot
expect, but it is being done by SBI. It happens due to employee dedication towards the
organization, fastest growing Indian economy, & brand image.

To be the largest advance product issuer, SBI should focus on-

Launch Innovative product

Customized advance products

Better customer services

Fastest customers problem solving techniques

Customer retention

Apart from all the above, SBI believe in providing good customer services to their customers
which is a key factor for success in future.

Questionnaire

Name - _____________________________________

Occupation-__________________________________

Contact Detail -_______________________________

Q. On which bank you depend for your regular transaction?

a)
b)
c)
d)

SBI
ICICI Bank
HDFC Bank
Other Bank, Specify (_____________)

Q. Are you aware of products & services provided by SBI?

a) YES
b) NO

Q. If yes are you aware of the advance products (Loan segments) of SBI?
a) YES
b) NO

Q. Which bank you prefer for taking loans?

a)
b)
c)
d)

SBI
ICICI Bank
HDFC Bank
Other Bank, Specify (_____________)

Q. If you prefer SBI for taking loan then what influence you to take Loan from SBI?
______________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________.

Q. Which loan product of SBI you have used?

a)
b)
c)
d)
e)

Home Loan
Education Loan
Car Loan
Personal Loan
Other Loans, Specify ( ______________ )

Q. What do you feel about the services provided by SBI in advance product?
a) Bad
b) Satisfactory
c) Good
d) Excellent
Q. Which features you like most in Loan segments of SBI?
a) Less paper work
b) Attractive interest rate
c) Transparency
d) Simple & fast processing
e) Flexibility to choose an EMI base loan or an overdraft
f) Longer tenure lone for ease of repayment
g) Specially design product for self employed
h) Any other feature, specify ( _____________ )

Q. Any suggestion you want to give for the betterment of SBI advance product.
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
____________________________________________.

Bibliography:

Text Books:

Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed.
New Jersey: Prentice Hall

Wilson A. (2003), Marketing Research: An Integrated Approach

Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth Edition

Internet:

www.google.co.in
www.sbi.com
www.sbi.co.in
www.bnet.com