A

Research Report
on
Measuring and comparing satisfaction level of Home Loan
borrowers a comparative study of private and public sector bank.

Submitted to Dr. Ap.J. Abdul Kalam Technical University Lucknow

in the partial fulfillment of the
Requirement of the award of Master of
Business Administration (MBA)

SESSION 2016-17

UNDER THE GUIDENCE OF SUBMITTED BY

Dr. Sandeep Verma Shubham Gupta
Asstt. Professor MBA 4th Sem.
Roll No.1500570096

FACULTY OF MANAGEMENT AND

COMPUTER APPLICATION
R.B.S Collage, Khandari Farm Campus,
Agra-282002

1
PREFACE

2
 PREFACE

This research report is made by me during the 4 th semester in

partially fulfillment of the for Master of Business Administration

(M.B.A.) Students are essentially required to conduct a research

project work on the topic provided by the related department of

the institute. The idea behind it to test acquired knowledge

through practical experience and to apply the rhetorical aspect of

management in the practical field.

This research report on the study of the Measuring and

comparing satisfaction level of Home Loan borrowers a
comparative study of private and public sector bank.

Shubham Gupta
MBA 4th Sem.
Roll No.1500570096

3
ACKNOWLEDGEMENT

4
 ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, most of which were experts in their

respective fields, who influenced my thinking, behavior, and acts during the course of

study.

As a fresher for the corporate, I was not having any idea about corporate culture. But I

would like to give special thanks to my project guide Dr. Sandeep Verma, who on behalf

of his opulent experience, told me about the basic of corporate and guided me which

helped me to complete the project efficiently and showed me the right path to reach the

final destination with minimum hiccups and was always there with a helping hand in

times of need throughout my project.

I am thankful to him for his support, cooperation, and motivation provided to me during

the completion of project.

Lastly, I would like to be thankful my father for their moral and financial support and my

friend with whom I shared my day-to-day experience and received lots of suggestions

that improved my work quality.

SHUBHAM GUPTA

Roll No.1500570096

5
DECLARATION

6
 DECLARATION

I Shubham Gupta do hereby declare that the project report titled

Measuring and comparing satisfaction level of Home Loan

borrowers a comparative study of private and public sector bank.

is genuine research work under taken by me and it has not been published

any where earlier.

Shubham Gupta
MBA 4th Sem.
Roll No.1500570096
Date :-
Place:- Agra

7
 Introduction

Objective

Research methodology

Training

Development

Analysis and Interpretation

Findings

Suggestions

Conclusion

Appendix

Bibliography

8
 CHAPTER 1

INTRODUCTION

9
 1.1 GENERAL INTRODUCTION OF BANK

Bank is a Latin word BANCO which is derived from Italy. The

word bank means to change the currency.

Another word bank derives from Germany Banck which means

to secure the money and establish for custody of money received from

or on behalf of the customers.

A Bank is an establishment for custody of money received from

or on behalf of its customers. Its essential duty is to pay their drafts

on it .Its profits arise from the of the money left unemployed by them.

The Oxford English Dictionary.

The bank believes in environment of staff in all cadres of success

in every aspect of work. This involvement is sought to be brought

about in such a way where by every staff member derives satisfaction

from his work and fulfils his desire to grow the institution.

Law of banking

Banking law is based on a contractual analysis of the relationship

between the bank and the customer. The definition of bank is given

above, and the definition of customer is any person for whom the bank

agrees to conduct an account.

10
The law implies rights and obligations into this relationship as follows:

1. The bank account balance is the financial position between the

bank and the customer, when the account is in credit, the bank

owes the balance to the customer, when the account is

overdrawn, the customer owes the balance to the bank.

2. The bank engages to pay the customer's cheques up to the

amount standing to the credit of the customer's account, plus

any agreed overdraft limit.

3. The bank may not pay from the customer's account without a

mandate from the customer, e.g. a cheque drawn by the

customer.

4. The bank engages to promptly collect the cheques deposited to

the customer's account as the customer's agent, and to credit

the proceeds to the customer's account.

5. The bank has a right to combine the customer's accounts, since

each account is just an aspect of the same credit relationship.

6. The bank has a lien on cheques deposited to the customer's

account, to the extent that the customer is indebted to the bank.

7. The bank must not disclose the details of the transactions going

through the customer's account unless the customer consents,

11
 there is a public duty to disclose, the bank's interests require it,

or under compulsion of law.

8. The bank must not close a customer's account without

reasonable notice to the customer, because cheques are

outstanding in the ordinary course of business for several days.

Entry regulation

Currently in most jurisdictions commercial banks are regulated

by government entities and require a special bank licence to operate.

The requirements for the issue of a bank licence vary between

jurisdictions but typically incude:

1. Minimum capital

2. Minimum capital ratio

3. 'Fit and Proper' requirements for the bank's controllers, owners,

directors, and/or senior officers

4. Approval of the bank's business plan as being sufficiently

prudent and plausible.

12
History

Banks have influenced economies and politics for centuries.

Historically, the primary purpose of a bank was to provide loans to

trading companies. Banks provided funds to allow businesses to

purchase inventory, and collected those funds back with interest when

the goods were sold. For centuries, the banking industry only dealt

with businesses, not consumers. Commercial lending today is a very

intense activity, with banks carefully analysing the financial condition

of their business clients to determine the level of risk in each loan

transaction. Banking services have expanded to include services

directed at individuals, and risk in these much smaller transactions are

pooled.

1.2 OBJECTIVES OF THE STUDY

1) To familiar with the financing operation of the State Bank of

India.

2) To analysis the capital structure, profitability, liquidity and

solvency of the State Bank of India.

3) To measure Level of satisfaction with regard to services,

interpersonal behaviour & work time schedule among the

customers of State Bank of India.

13
 4) To measure level of awareness about the credit card services &

investment facilities.

5) To study the future of State Bank of India.

1.3 INDUSTRY PROFILE

a) ORIGIN & DEVELOPMENT OF BANKING INDUSTRY

Many factor have influenced the banking structure in India.

Among then are economic crisis Constitutional authority &fiscal issue,

during the colonial period very little money circulated. The opening of

English agency house which carried on banking business in addition to

their commercial &trading activities at Calcutta &Bombay in 18 th &

early 19th century marked the beginning of banking on modern line in

India.

The first joint stock established in India was in the bank of

Hindustan, founded in 1770 by the famous English agency house of

Messer Alexander& company. The need of the organized banking

system was felt very early in the 19 th century Bank of Bengal in

14
Calcutta was established in1806. After this two more banks were

established, Bank of Bombay & Bank of madras soon these three bank

were amalgamated in 1921 & formed the Imperial bank of India The

Imperial bank of India functioned as a bankers bank & as well as

bankers to Government upto 1935 when, its function were transferred

to Reserve Bank of India, which came in to existence in the same

year. There were so many banks at that time without moving any

control.

The first fully Indian owned bank was the Allahabad Bank,

which was established in 1865. The nationalization of Imperial bank of

India took place &it was renamed as the State Bank of India 19 July

1969. By the 1900s, the market expanded with the establishment of

banks such as Punjab National Bank, in 1895 in Lahore and Bank

of India, in 1906, in Mumbai - both of which were founded under

private ownership.

b) Growth and present status of Banking Industry

Nationalization

By the 1960s, the Indian banking industry has become an

important tool to facilitate the development of the Indian economy. At

the same time, it has emerged as a large employer, and a debate has

ensued about the possibility to nationalize the banking industry. Indira

15
Gandhi, the Prime Minister of India expressed the intention of the GOI

in the annual conference of the All India Congress Meeting in a paper

entitled "Stray thoughts on Bank Nationalisation." She nationalised the

14 largest commercial banks with effect from the midnight of July 19,

1969. A second dose of nationalisation of 6 more commercial banks

followed in 1980. After nationalisation until the 1990s, the nationalised

banks grew at a pace of around 4%, closer to the average growth rate

of the Indian economy.

Liberalisation

In the early 1990s,government introduced a policy of

liberalisation and gave licences to a small number of private banks,

which included banks such as Global Trust Bank which later

amalgamated with Oriental Bank of Commerce, UTI Bank (now re-

named as Axis Bank), ICICI Bank and HDFC Bank. This move, along

with the rapid growth in the economy of India, Currently, India has 88

scheduled commercial banks (SCBs) - 28 public sector banks , 29

private banks and 31 foreign banks. They have a combined network of

over 66,000 branches and 32,000 ATMs. The public sector banks hold

over 75 percent of total assets of the banking industry, with the

private and foreign banks holding 18.2% and 6.5% respectively.

Year-on-year growth in bank credit was robust at 28% on top of

31.8% in the previous year, while year-on-year deposit growth of

16
scheduled commercial banks rose to 23% as against 18.1% in the

previous year.

Commercial banks investments in bonds / debentures of public

sector undertakings and the private sector and in commercial paper

(CP) registered an increase of Rs. 4,002 crores during 2007-08 in

contrast to a decline of Rs. 13,237 crores in the previous year.

Commercial banks invested Rs. 74,706 crores in Government

paper in contrast to a decline of Rs. 22,809 crores in 2006-07.

Aggregate deposits of SCBs increased by 22.2 per cent

(Rs.5,80,208 crore) during 2007-08 as compared with 23.8 per

cent (Rs.5,02,885 crore) in the previous year.

The total assets in the banking sector today is estimated to be at

Rs 17 trillion and total deposits are estimated at Rs 13 trillion.

c) Future of the banking industry

Banks have been able to finance the credit boom by managing

their capital requirements, and have a CRAR of 12% that is

considerably higher than the 9% level stipulated by RBI. The rapid

growth prevailing in bank credit would necessitate further

capitalization of banks.

17
 The high degree of business optimism and continuing investment

demand are pointers to prospects of substantial growth in bank credit.

The beyond performance of businesses has led to significant increase

in incomes of individuals and more employment avenues. Thus, the

growth prospects in retail segment are also expected to be high.

As per the schedule for implementation of Basel II provisions,

foreign banks operating in India and Indian banks having presence

outside India.

In terms of ownership, debit cards are more in number than

credit cards but in terms of transactions, credit cards are used

more than debit cards. Rural and semi-urban centres account for

66% of total bank branches.

Bankable household India is anticipated to grow at a CAGR of

28.10% during 2007-2011.

In future the retail banking industry in India is likely to reach a

value of $300 billion by 2010.

18
Chapter 2

19
 COMPANY PROFILE

2.1 ORIGIN OF THE BANK

State Bank of India

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

Founded Calcutta, 1806 (as Bank of Calcutta)
Corporate Centre,

Headquarters Madame Cama Road,

Mumbai 400 021 India

Key people Chairman Om Prakash Bhatt
Banking

Industry Insurance

Capital Markets and allied industries

Loans, Credit Cards, Savings, Investment
Products
vehicles, SBI Life (Insurance) etc.

20
Revenue USD 22.4 billion (2008)
Total assets USD 255.9 billion (2008)
Website www.statebankofindia.com
State Bank of India (SBI) (LSE: SBID) is a Public Sector Banking

Organisation (PSB), in which the Government of India is the biggest

shareholder. It is the largest bank in India and is ranked at 380 in

2008 Fortune Global 500 list, and ranked 219 in 2008 Forbes

Global 2000. Measured by the number of branch offices, SBI is the

second largest bank in the world. SBI traces its ancestry back to the

Bank of Calcutta, which was established in 1806; this makes SBI the

oldest commercial bank in the Indian subcontinent. SBI provides

various domestic, international and NRI products and services, through

its vast network in India and overseas. With an asset base of $126

billion and its reach, it is a regional banking behemoth.

In recent years the bank has focused on four priorities, first, reducing

its huge staff through the Golden handshake scheme known as the

Voluntary Retirement Scheme, second, computerizing its operations,

third, implementation of Business Process Re-Engineering(BPR), and

fourth, trying to change the rude attitude of its staff through a

program aptly named 'Parivartan' or 'change'. On the whole, the Bank

has been successful in the first three initiatives but has failed in

Parivartan.

21
After a 20 year hiatus, the Bank is recruiting 20000 clerks and 3500

officers. The pick of the universities aspire to join the Bank and more

than 2.5 million applications have been received.

History

Offices of the Bank of Bengal

1806: On June 2, the Bank of Calcutta was established.

1809: On January 2, the Bank of Calcutta changed its name to

the Bank of Bengal.

1840: On April 15, the Bank of Bombay was established.

1843: On July 1, the Bank of Madras was established.

These three banks Bank of Bengal, Bank of Bombay, and Bank of

Madras were known as Presidency banks, were the result of royal

charters, and were incorporated as joint stock companies.

1861: The government passed the Paper Currency Act, limiting

the right to issue paper currency to the three Presidency banks, .

22
 1921: On January 27, the government amalgamated the three

Presidency banks to form the Imperial Bank of India. The

Imperial Bank of India continued as a joint stock company. Until

the establishment of a central bank in India, the Imperial Bank

and its early predecessors served as India's central bank, at

least with respect to the issuing of currency.

1955: On 30 April, the Parliament of India enacted the State

Bank of India Act authorizing the Reserve Bank of India (RBI),

which is the central bank, to acquire a controlling interest in

the Imperial Bank of India. The RBI then took a 60% ownership

stake. On July 1, Imperial Bank of India became State Bank of

India.

1959: the Government of India passed the State Bank of India

(Subsidiary Banks) Act, which enabled SBI to take over eight

former State-associated banks as its subsidiaries.

1980s When Bank of Cochin in Kerala faced a financial crisis,

the government merged it with State Bank of India.

2007: On June 29, the Government of India acquired the entire

Reserve Bank of India (RBI) shareholding in State Bank of

India (SBI), consisting of over 314 million equity shares, with a

market value of over 355 billion rupees.

23
 2008: 9 March 2008 State Bank of India on Sunday became

the second bank in the world to have 10,000 branches when

Union Finance Minister P Chidambaram inaugurated its latest

branch at his native place Puduvayal.[1]

2.2 GROWTH AND DEVELOPMENT OF THE BANK

Mumbai, India location.

State Bank of India has often acted as guarantor to the Indian

Government, most notably during Chandra Shekhar's tenure as

Prime Minister of India. With 10,000 branches[1] and a further

4000+ associate bank branches, the SBI has extensive coverage.

Following its arch-rival ICICI Bank, State Bank of India has

electronically networked all of its metropolitan, urban and semi-urban

branches under its Core Banking System(CBS), with over 10800+

branches being incorporated. With this, 'SBI has become the largest

bank in the world, covering 10800+ offices on a single core banking

platform. The bank has the largest ATM network in the country having

more than 8000+ ATMs[2]. The State Bank of India has had steady

24
growth over its history, though the Harshad Mehta scam in 1992

marred its image.

In recent years, the bank has sought to expand its overseas operations

by buying foreign banks. It is the only Indian bank to feature in the

top 100 world banks in the Fortune Global 500 rating and various

other rankings. According to the Forbes 2000 listing it tops all Indian

companies.

Fortune Global 500 Ranking - 2008

In 2008 SBI was ranked 380 from a rank of 495 in 2007. [3] As per

fortune 500-2008 following are the data for SBI in $ million.

Revenues: 22,402.2

Profits: 2,225.0

Assets: 255,854.9

Stockholders' Equity: 15,263.3

Group companies

SBI Capital Markets Ltd

SBI Mutual Fund (A Trust)

SBI Factors and Commercial Services Ltd

25
 SBI DFHI Ltd

SBI Cards and Payment Services Pvt Ltd

SBI Life Insurance Co. Ltd - Bancassurance (Life Insurance)

SBI Funds Management Pvt Ltd

SBI Canada

IT Initiatives

According to PM Network (December 2006, Vol. 20, No. 12), State

Bank of India launched a project in 2002 to network more than 14,000

domestic and 70 foreign offices and branches. The first and the second

phases of the project have already been completed and the third

phase is still in progress. As of December 2006, over 10,000 branches

have been covered.

The new infrastructure serves as the bank's backbone, carrying all

applications, such as the IP telephone network, ATM network, Internet

banking and internal e-mail. The new infrastructure has enabled the

bank to further grow its ATM network with plans to add another 3,000

by the end of 2007 raising the total number to 8,600. As of September

20, 2007 SBI has 7236 ATMs. sbi kanpur

2.3 PRESENT STATUS OF THE BANK

26
The State Bank of India, the countrys oldest Bank and a premier in

terms of balance sheet size, number of branches, market capitalization

and profits is today going through a momentous phase of Change and

Transformation the two hundred year old Public sector behemoth is

today stirring out of its Public Sector legacy and moving with an agility

to give the Private and Foreign Banks a run for their money.

The bank is entering into many new businesses with strategic tie ups

Pension Funds, General Insurance, Custodial Services, Private Equity,

Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services,

structured products etc each one of these initiatives having a huge

potential for growth.

The Bank is forging ahead with cutting edge technology and innovative

new banking models, to expand its Rural Banking base, looking at the

vast untapped potential in the hinterland and proposes to cover

100,000 villages in the next two years.

It is also focusing at the top end of the market, on whole sale banking

capabilities to provide Indias growing mid / large Corporate with a

complete array of products and services. It is consolidating its global

treasury operations and entering into structured products and

derivative instruments. Today, the Bank is the largest provider of

27
infrastructure debt and the largest arranger of external commercial

borrowings in the country. It is the only Indian bank to feature in the

Fortune 500 list.

The Bank is changing outdated front and back end processes to

modern customer friendly processes to help improve the total

customer experience. With about 8500 of its own 10000 branches and

another 5100 branches of its Associate Banks already networked,

today it offers the largest banking network to the Indian customer. The

Bank is also in the process of providing complete payment solution to

its clientele with its over 8500 ATMs, and other electronic channels

such as Internet banking, debit cards, mobile banking, etc.

With four national level Apex Training Colleges and 54 learning Centres

spread all over the country the Bank is continuously engaged in skill

enhancement of its employees. Some of the training programes are

attended by bankers from banks in other countries.

The bank is also looking at opportunities to grow in size in India as

well as Internationally. It presently has 82 foreign offices in 32

countries across the globe. It has also 7 Subsidiaries in India SBI

Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life

and SBI Cards - forming a formidable group in the Indian Banking

scenario. It is in the process of raising capital for its growth and also

consolidating its various holdings.

28
Throughout all this change, the Bank is also attempting to change old

mindsets, attitudes and take all employees together on this exciting

road to Transformation. In a recently concluded mass internal

communication programme termed Parivartan the Bank rolled out

over 3300 two day workshops across the country and covered over

130,000 employees in a period of 100 days using about 400 Trainers,

to drive home the message of Change and inclusiveness. The

workshops fired the imagination of the employees with some other

banks in India as well as other Public Sector Organizations seeking to

emulate the programme.

The CNN IBN, Network 18 recognized this momentous transformation

journey, the State Bank of India is undertaking, and has awarded the

prestigious Indian of the Year Business, to its Chairman, Mr. O. P.

Bhatt in January 2008.

2.4 FUTURE PLANS OF THE BANK

Associate banks

There are seven other associate banks that fall under SBI. They all use

the "State Bank of" name followed by the regional headquarters'

name. These were originally banks belonging to princely states before

the government nationalized them in 1959. In tune with the first Five

29
Year Plan, emphasizing the development of rural India, the

government integrated these banks with the State Bank of India to

expand its rural outreach. The State Bank group refers to the seven

associates and the parent bank. All the banks use the same logo of a

blue keyhole. Currently, the group is merging all the associate banks

into SBI, which will create a "mega bank", and one hopes, streamline

operations and unlock value.

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Indore

State Bank of Mysore

State Bank of Patiala

State Bank of Saurashtra

State Bank of Travancore

Foreign Offices

State Bank of India is present in 32 countries, where it has 84 offices

serving the international needs of the bank's foreign customers, and in

some cases conducts retail operations. The focus of these offices is

India-related business.

30
Foreign Branches

SBI has branches in these countries:

The Israeli branch

Australia

Bahrain

Bangladesh

Belgium

Canada

France

Germany

Hong Kong

Israel

Japan

31
 People's Republic of China

Republic of Maldives

Singapore

South Africa

Sri Lanka

Sultanate of Oman

The Bahamas

United Arab Emirates

U.K.

U.S.A

Subsidiaries and Joint Ventures

In addition to the foreign branches above, SBI has these wholly owned

subsidiaries and joint ventures:

Nepal State Bank Limited is an Indo-Nepalese joint venture between

State Bank of India, the Employees Provident Fund, and the

Agricultural Development Bank of Nepal. It commenced

operations on July 7, 1993, and now has 21 branches

throughout Nepal.

32
 SBI Mauritius is an offshore bank, incorporated in 1990.

Indian Ocean International Bank (Mauritius) has been operating in

Mauritius since 1978. SBI acquired a majority stake in the bank

in April 2005. The bank is is a commercial bank with 11 branches

in major cities/towns in Mauritius, including Rodrigues.

SBI Canada has been operating for more than a decade and has a

number of branches in the Toronto and Vancouver areas.

State Bank of India established SBI California in 1982. The bank

has six branches within the state.

2.5 FUNCTIONAL DEPARTMENTS OF THE BANK

Retail Banking

Vehicle Finance

Priority Sector Lending

Wholesale Banking

Corporate Banking Division (CBD)

Treasury & Investment Division (TID)

Capital and Commodities Market Division (CCMD)

33
 International Division (ID)

Investment Banking

Asset Management

Integrated Risk Management

Complaint redressal mechanism

Asset Liability Management

Human Resources / Industrial Relations

Information Technology

Retail Banking

Retail Banking Segment has shown substantial growth during the

current financial year. This has been achieved by adopting customer

segmentation and mapping the products and services to appropriate

segments, to ensure delivery of value-added services.

On-line General Insurance policies and On-line Investment

options in mutual funds are some of the facilities now provided to the

customers.

Vehicle Finance

34
 Vehicle Finance Division (VFD) of Bank extends asset-backed

financing for a wide range of vehicles spanning across heavy

commercial Vehicles, three wheelers, cars, two wheelers, etc. Besides,

specialty construction equipments like tippers, cranes, excavators, and

loaders are also financed.

The focus during the year was to optimize the product mix to

maximize yields and at the same time maintain portfolio quality.

VFD operations are efficiently supported by state-of-the-art

document storage and retrieval facility at Karapakkam unit that

handles loan document processing and record maintenance.

VFDs data centre, also located at Karappakam, has state-of-the-

art facilities in terms of data / equipment protection mechanisms and

access rights with sensors to monitor movement within the data

centre.

Priority Sector Lending

Under this division, Bank has attained the RBI-prescribed target

for total priority sector advances. Under Priority Sector division bank

mainly focuses on agriculturists, Small Road Transport Operators and

Individual Housing Loans etc.

Wholesale Banking

35
 With the twin objectives of meeting growing market competition

as well as improving customer profitability, Bank has structured its

wholesale banking operations into four vertical business lines,

consisting of four Strategic Business Units (SBUs), viz., Corporate

Banking Division, Capital & Commodities Market Division, Treasury &

Investments Division and International Division.

Corporate Banking Division (CBD)

The objective of the division is to service the full value chain of

customer requirements. The division offers a wide range of banking

and finance solutions to derive the maximum value and earnings from

each customer. The aim is to build a holistic, long-term and mutually

beneficial relationship with its customers through cost-effective and

efficient services, utilising technology solutions.

Treasury & Investment Division (TID)

Bank has a fully integrated Dealing Room that redefined its focus

from market segment-based to function-based. This measure has

started yielding results as functional expertise across various markets

has been put to optimal use.

The TID has three distinct functional segments

36
 (a) Corporate Desk, catering to the needs of

customers and branches

(b) Trading Desk, engaged in trading in Foreign

Exchange, Fixed Income, Derivatives and Capital Markets

(c) Balance Sheet Desk, managing the liquidity, ALM

functions and resources to meet statutory requirements of

maintaining of CRR / SLR.

Capital and Commodities Market Division (CCMD)

Banks Fort (Mumbai) Branch focuses on serving Capital and

Commodities market players, and is the nodal branch for this business

line. Bank has the Clearing and Settlement Bank status with five

principal stock and commodity exchanges of the country viz. NSE,

BSE, NCDEX, MCX and NMCE. Besides, Bank is an empanelled

Depository Participant for NSDL and CDSL and is also empanelled with

NCDEX and MCX, thereby offering DP services to both securities and

commodities segments, a distinction shared by only a few select banks

in the country.

Bank is offering e-broking through Payment Gateway technology

with select brokers to facilitate provision of three-in-one account

facility to the retail investors and to enable them to undertake on-line

trading in equity market.

37
 Bank has also concluded arrangement with ten leading

mutual funds offering direct credit facility for redemption and income

distribution.

Bank is also registered as a Debenture Trustee for providing this

service to corporate customers.

International Division (ID)

The International Division of your Bank covers all cross-border

business flows of the Bank. Your Bank has correspondent relationships

with 332 banks spread across the globe.

There are tie-up arrangements with 16 Exchange Houses under

Rupee Drawing Arrangement and with two Money Transfer companies

as principal agents under Money Transfer Service Scheme. The Bank is

in the process of appointing sub-agents to increase the volumes

through partnership with other domestic banks and financial

institutions.

To enhance overseas business and leverage NRI relationships,

the Bank has adopted the Regional Alliance model of partnering with

strong regional overseas banks that do not have branch presence in

India. During the year, alliances were established with two banks

38
 having coverage in United Arab Emirates and Qatar. Bank proposes to

establish similar alliances in other geographical regions like South East

Asia, United Kingdom, the United States, etc.

Investment Banking

During the year, the Investment Banking Division worked on a

number of assignments in the areas of financial and corporate advisory

services, equity placements, cross border transactions, debt

restructuring, equity syndication, etc. Among the various assignments

completed by this Division was the advising of Hinduja TMT Ltd. on

divesting its stake in Hutchison Essar Ltd., a transaction worth USD

450 million.

In the years to come, the Investment Banking Division would

leverage on its alliances with European and US-based investment

banks in the execution of cross border deals.

Asset Management

Bank has continued its past trend of recoveries. During the year,

recoveries / upgrading of written off / non-performing assets (NPA)

amounted to Rs.158.89 crores. Besides, NPAs worth Rs.49.17 crores

(Net Book Value) were sold off during the year to an Asset

Reconstruction Company.

39
 Due to these efforts, Net NPAs were restricted to 2.47% of Net

Bank Credit as compared to 2.09% in the previous year. But for

classification as NPA of one major account, which is not an NPA with

other Banks, the percentage of net NPAs would have been still lower at

1.46%.

Integrated Risk Management

A strong enterprise-wide risk management framework is a

cornerstone of prudent banking. It facilitates management of various

risks while supporting rapid business growth, helps reduce volatility in

earnings and enhances shareholder value.

Bank, with the assistance of KPMG, a leading international

consultant, has established an integrated Risk Management

Department responsible for Bank-wide risk management covering

credit risk, market risk and operational risk, independent of the

business segments. Bank has been progressively adopting the best

international practices so as to continually reinforce its risk

management functions.

Complaint redressal mechanism

40
 Bank has designed an escalation process for all customer

complaints received at Branches and Corporate office. A quarterly

report is placed to the Board of Directors on the complaints handled.

Bank maintains a dedicated page for lodging of complaints and

complaint redressal mechanism on its website www.SBI.com where

information on the escalation process and the details of the nodal

officer to receive complaints has been furnished. These details are also

displayed at the Banks Branches.

Asset Liability Management

Banks ALM system supports effective management of liquidity

risk and interest rate risk, covering 100% of its assets and liabilities.

Liquidity Risk is monitored through Structural Liquidity Gaps, Dynamic

Liquidity position, Liquidity Ratios Analysis and Behavioral Analysis,

with prudential limits for negative gaps in various time buckets.

Human Resources / Industrial Relations

The Human Resources (HR) functions focus was on ensuring

employee satisfaction and retention by creating a performance

enabling work culture within the organization. With this goal in mind,

your Bank has made substantial progress in all facets of HR.

Manpower strength increased during the year from 2365 to

2613. Manpower was added in an efficient and time-bound manner

41
 with a keen eye on candidate quality. Bank broad-based its

recruitment sources with a view to reducing hiring costs and bringing

down turnaround time. A judicious mix of placement consultants, job

portals, employee referrals and campus recruitments ensured hiring

costs were kept to a minimum. The employee referral scheme Indus

Parichay in particular deserves mention. Not only has this scheme

given us quality employees who fit in perfectly with the work ethos but

it has also contributed in substantially bringing down recruitment

costs.

Bank has increased emphasis on bringing contemporary skills to

the organization through its training and development activities. Bank

is continuously assessing the learning gaps amongst its employees and

is trying to bridge the learning gaps by organizing training programs to

develop the technical and behavioral competencies of its employees.

Information Technology

The Banks technology infrastructure has been among the best in

the Indian Banking Industry. This recognition has been endorsed by

the industry peers with State Bank of India being conferred with the

Runner-Up Award for Best Implementation of Straight Through

Processing, an Award sponsored by Indian Banks Association (IBA)

jointly with Trade Fair Conferences International (TFCI) and Finacle

42
(Infosys). This is the second consecutive year that your Bank has won

the IBA Award.

The Banks successful Mock Disaster Drills to test the DR

preparedness of core banking application exhibits the robustness of

the systems and services provided to its customers. A notable

achievement during these mock drills was that the branches with MPLS

and VSAT links were switched to DR site without routing through

Mumbai. This is significant in a centralized environment, as even in a

scenario of site disaster at Mumbai, branches can operate without any

disruption. The DR infrastructure for Base24 Switch has been

commissioned and the Production ATM Switch was upgraded during the

year.

Several other IT initiatives for facilitating customer convenience

have been undertaken during the year. For example, Mobile Banking

initiatives help a customer track balances and transactions The Bank is

now ready to offer a new convenient channel for its customer contact

center with Computer Telephony Interface (CTI) with Operational CRM

Application (Talisma) which is interfaced with the banks core systems.

Bank has enabled online remittances from correspondent banks

abroad, which facilitates online movement of funds across banks.

Several products and services like Mobile Banking, Visa Gold Debit

card, Gift Card, On-line issuance of insurance policies, Sunday

43
Banking, 8-to-8 banking, etc. have all been deployed with the help of

technology.

2.6 ORGANIZATION STRUCTURE AND

ORGANIZATION CHART

Central Board of State Bank of India

(As on 24th June 2008)

Sec. of SBI Act,

Sr. No. Name of Director
1955
Shri O.P. Bhatt
1. 19(a)
Chairman
Shri S.K. Bhattacharyya
2. 19(b)
MD & CC&RO
3. Shri Suman Kumar Bery 19(c)
4. Dr. Ashok Jhunjhunwala 19(c)
5. Shri Dileep C. Choksi 19(c)
6. Shri S. Venkatachalam 19(c)
7. Dr. Deva Nand Balodhi 19(d)
8. Prof. Mohd. Salahuddin Ansari 19(d)
9. Dr.(Mrs.) Vasantha Bharucha 19(d)
10. Shri Arun Ramanathan 19(e)
11. Smt. Shyamala Gopinath 19(f)

2.7 PRODUCT AND SERVICE PROFILE OF THE

BANK

44
Working Capital Finance

SBI offers working capital finance to meet the entire range of short-

term fund requirements that arise within a corporates day-to-day

operational cycle.

The SBI working capital loans can help your company in financing

inventories, managing internal cash flows, supporting supply chains,

funding production and marketing operations, providing cash support

to business expansion and carrying current assets.

SBIs working finance products comprise a spectrum of funded and

non-funded facilities ranging from cash credit to structured loans, to

meet the different demands from all segments of industry, trade and

the services sector. Funded facilities include cash credit, demand loan

and bill discounting. Demand loans are considered also under the

FCNR (B) scheme. Non-funded instruments comprise letters of credit

(inland and overseas) as well as bank guarantees (performance and

financial) to cover advance payments, bid bonds etc.

Project Finance

45
The SBI has formed a dedicated Project Finance Strategic Business

Unit to assess credit proposals from and extend term loans for large

industrial and infrastructure projects. Apart from this, project term

loans for medium sized projects and smaller clients are delivered

through the CAG and the NBG.

In general, project finance covers greenfield industrial projects,

capacity expansion at existing manufacturing units, construction

ventures or other infrastructure projects. Capital intensive business

expansion and diversification as well as replacement of equipment may

be financed through the project term loans.

Project finance is quite often channeled through special purpose

vehicles and arranged against the future cash streams to emerge from

the project.

The loans are approved on the basis of strong in-house appraisal of

the cost and viability of the ventures as well as the credit standing of

promoters.

Deffered Payment Gaurantees

46
Q. What is the SBI deferred payment guarantee?

SBI can extend deferred payment guarantees to industrial projects for

obtaining imported equipment. The DPG is a standby credit

guaranteeing deferred payments, usually for payments for capital

goods, turnkey contracts etc.

Corporate Term Loan

The SBI corporate term loans can support your company in funding

ongoing business expansion, repaying high cost debt, technology

upgradation, R&D expenditure, leveraging specific cash streams that

accrue into your company, implementing early retirement schemes and

supplementing working capital.

Corporate term loans can be structured under the FCNR (B) scheme as

well, with the option of switching the currency denomination at the end

of interest periods. This will help you take advantage of global interest

rate trends vis--vis domestic rates to minimize your debt cost.

The banks corporate term loans are generally available for tenors from

three to five years, synchronized with your specific needs.

SBI corporate term loans may carry fixed or floating rates, as befits

the exact requirement of the client and the risk context. Again, these

rates will be linked to the banks prime lending rate.

47
SBI corporate term loans can have a bullet or periodic repayment

schedule, as required by the client. The repayment mode may be

linked to the cash accruals of the company.

The Banks expert credit crew gauges the applicants particular fund

requirements and evaluates the companys credit worthiness, factoring

in the cash flows generated by it.

Structured Finance

SBI structured finance involves assembling unique credit

configurations to meet the complex fund requirements of large

industrial and infrastructure projects. Structured finance can be a

combination of funded and non-funded facilities as well as other credit

enhancement tools, lease contracts for instance, to fit the multi-layer

financial requirements of large and long-gestation projects.

Q. What is the SBI advantage in structured finance?

Being Indias largest bank and with the rich experience that it brings

with it, SBI commands formidable expertise in engineering financial

packages that address complex requirements with minimum risk.

Further, SBI has firm relationships across the financial map of the

world, which can be leveraged to structure solutions that may

necessitate the participation of several credit agencies.

48
Dealer Financing

SBI extends financial support to the corporate distribution networks,

by providing both working capital finance and term loans to select

dealers of identified companies. This gives dealers to leverage their

business relationship with major corporates to avail low cost credit.

Also, this type of financial solutions allows the corporate negotiate a

better price with dealers. Dealer financing may be extended in the bill

discounting form or simply as cash credit.

Channel Financing

Channel financing is an innovative finance mechanism by which the

bank meets the various fund necessities along your supply chain at the

suppliers end itself, thus helping you sustain a seamless business flow

along the arteries of the enterprise.

Channel finance ensures the immediate realization of sales proceeds

for the SBI clients supplier, making it practically a cash sale. On the

other hand, the corporate gets credit for a duration equaling the tenor

of the loan, enabling smoother liquidity management.

SBI has the worlds largest banking network of over 9,000 branches

and this enables it to deliver the financial solution at your suppliers

doorsteps, across the span of the country.

49
Equipment Leasing

The SBIs has deployed a dedicated Strategic Business Unit for lease

financing that is richly experienced in arranging lease contracts for

procuring expensive equipment for your project or plant. At SBI, we

arrange lease agreements as stand alone contracts or as part of a

structured package.

Loan Syndication

The SBI leverages its vast network of relationships to arrange

syndicated credit products for corporate clients and industrial projects.

With its rich experience and strong reputation, SBIs syndication desk

can assemble large loan packages involving a ring of reputed financial

entities, domestic and international, that match the large credit

requirements of infrastructure projects.

TRADE and SERVICES SECTOR

Transport Plus

Purpose

To finance new trucks/tankers/trailers/tippers/luxury buses including

take over of existing similar loans from other banks/institutions.

Eligibility

Profit making Corporates/Non-corporates (surface transport operators)

50
owning more than 10 well-maintained vehicles (including the

proposed).

Quantum of finance

Minimum Rs. 10 lacs and maximum Rs. 10 crores.

Repayment

Term Loan: Maximum 5 years.

Repayment will be in Equated Monthly Installments (EMI), starting two

months after disbursement. Cash Credit: Repayable on demand,

renewal every year.

EMI Calculator

Margin

20%

Eligible amount of finance

Term Loan: 100 % of the cost of the chassis, inclusive of excise duty.

Other expenses are to be borne by the borrower. Where body building

is not required, 80 % of the cost of the vehicle will be financed. An

additional Term Loan limit, subject to a maximum of 20% of the

original limit may be sanctioned for repair of the vehicle, on or after

the 3rd year if the loan account is regular.

51
Cash Credit : 80% of receivables.

Prepayment

Term Loan: Maximum 1% p.a. on the pre-paid amount, for the

residual period.

Rate of Interest

For Term loans, 8.50% p.a. with monthly rests and for Cash Credit,

11.75% p.a. with monthly rests.

Security

Primary: Hypothecation of vehicles financed as well as book

debts.Collateral :

i) At least 50% of the loan amount

ii) Personal guarantee of promoters and two third-party guarantors.

Insurance

As per Banks guidelines.

Applicability

Metro/urban/semi-urban centers

Bill Finance

52
The banks bill finance product helps you bridge the fund gap between

the date of sale of products to the receipt of payments.

The bank purchases the bill of exchange your company receives

against a product sale, at a discount, thus doing away with the delay

in realizing the receivables.

The extent of discounting would amount to the interest calculated till

the payments for the original sale are realized, and will be determined

on the basis of market interest rates as well as the credit rating of the

borrower.

Cash Credit for Traders

SBI cash credit can be in the form of a running account, similar to an

overdraft secured by a charge on current assets, that meets the

frequent cash requirements of your trading cycle.

Term Loan for Asset Aquisition

The specialized product has been designed to help you purchase plant,

machinery, land or other physical assets required during the growth

and expansion of the your company.

Letters of Credit

53
The SBI offers Letters of Credit to facilitates your purchases of goods

in trading operations, both domestic and international. Backed by the

SBIs strong reputation, you will be able to build better trust in trade

and forge business relationships faster.

The banks vast network of branches and correspondent banks enables

your enterprise to sustain a seamless flow of business on a wide

platform.

Further, the banks informed trade finance crew can provide you with

sophisticated credit and trade information and market knowledge,

helping you extract more value from business.

Bank Gaurantees

The SBI guarantees the creditworthiness or the business capacity of its

clients through its financial and performance guarantees.

Cash Management Product

The bank offers a totally technology-driven cash management product,

based on the satellite-linked SBI FAST (for Funds Available in the

Shortest Time) platform that connects 120 centers spread across the

country. Your cash collections can be pooled at these centers at

competitive rates.

54
Further, your cost centers at various locations can have a daily limit

with the SBIs local branch which can be swept automatically into your

main account located at your corporate center.

The SBI is planning to raise the number of its cash management

centers to 500, which then would cover 90 per cent the banks

corporate clients financial transactions.

Q. What are the benefits of the SBI cash management product?

The cash management solution ensures a comfortable liquidity position

within your corporation always and will significantly bring down

transaction time and cost. Further, the quicker, more efficient and

better-controlled cash circulation can actually create profit

opportunities for the company.

The company will be better placed to forecast its cash positions and

schedule related financial transactions accordingly.

Channel Financing

Channel financing is an innovative finance mechanism by which the

bank meets the various fund necessities along your supply chain at the

suppliers end itself, thus helping you sustain a seamless business flow

along the arteries of the enterprise.

55
Channel finance ensures the immediate realization of sales proceeds

for the SBI clients supplier, making it practically a cash sale. On the

other hand, the corporate gets credit for a duration equaling the tenor

of the loan, enabling smoother liquidity management.

SBI has the worlds largest banking network of over 9,000 branches

and this enables it to deliver the financial solution at your suppliers

doorsteps, across the span of the country.

2.8 MARKET PROFILE OF THE BANK

ADVANCES MARKET SHARE
SBI 1,955 22.7%
ICICI Bank 631 7.3%
Canara Bank 476 5.5%
PNB 472 5.5%
Bank of India 458 5.3%
Bank of Baroda 356 4.1%
HDFC Bank 177 2.1%
Total 4,687 54.4%

The fact that the top 8 banks account for barely 54 per cent of

the market share suggests that several smaller players occupy the

remaining 46 per cent.

It is here that the foreign players see the 'opportunity'. Although

the smaller players together account for a reasonable share, most of

them are undercapitalized, on a standalone basis.

56
 The need to cater to the burgeoning credit demand also calls for

additional capital requirement, for which their foreign counterparts can

come to the rescue of the smaller Indian banks.

Also, since the new foreign players will not be allowed to expand

freely, the ones taking the subsidiary route for expansion will not be

subjected to rural branch norms (24 per cent of branches to be set up

in rural areas) as well as priority sector lending requirement (35 per

cent). They can thus concentrate their focus on the lucrative urban

markets.

COMP ANY PROFILE

ICICI limited was founded by government of India, World Bank

and representatives of private industry on January 5,1955. ICICl's

principal business activities includes medium term and long term

project financing for the infrastructure and manufacturing sectors'

corporate finance to meet the treasury requirements of Indian

57
companies, lease finance as well as a comprehensive range of financial

services. For regulatory and strategic reasons, ICICI set up specialized

subsidiaries in the areas of commercial banking, investment banking

non banking finance investor services brooking venture capital

financing and state level infrastructure financing.

ICICI provides finance in form of rupee and foreign currency

loans, underwriting and direct and subscription to issues of shares and

debentures and guarantees to suppliers of equipment and foreign

lenders. It provides financial assistance to a large no of industrial

sectors including cement, chemicals electronics, fertilizers, food

processing, iron and steel, man-made fibbers, metal products, textiles

and transport equipment. ICICI subsidiaries and group companies

includes:

1) ICICI Banks ltd.

2) ICICI Securities and Finance Company ltd.

3) ICICI Brokerage Services ltd

4) ICICI Capital ltd.

5) ICICI Personal Financial Services ltd.

6) ICICI Infotech Services ltd

7) ICICI Venture Funds Management Company ltd.

8) ICICI International ltd.

9) ICICI KINFRA ltd.

10) ICICI West Bengal Infrastructure Development Corporation

58
 ltd.

11) ICICI Realty ltd.

12) ICICI Properties ltd.

13) ICICI Real Estate Compo ltd.

14) ICICI Home Finance Compo ltd.

15) ICICI Trusteeship Services ltd.

16) ICICI Knowledge Park.

17) ICICI Web Trade ltd.

18) ICICI Investment Management Compo ltd.

19) ICICI Payments ltd.

20) ICICI Infotech Inc.

21) ICICI Prudential Life Insurance Compo ltd

22) Ivory International Inc.

24) ICICI Securities Holdings Inc

25) ICICI Securities Inc.

26) ICICI Eco-Net ltd.

27) ICICI Infotech Pte. ltd.

28) ICICI Lombard General Insurance Compo ltd.

29) ICICI Global Opportunities Fund, LLC.

DEVELOPMENT ACTIVITIES

ICICI's development activities have encompassed such diverse

areas as technology financing, science parks, rural development,

vocational training/skill development for the handicapped, education of

59
the under privileged and health care for the weaker sections of the

society. Some specialized institutions for these development activities

HDFC India's first housing finance provider.

CRISIL India's first credit rating agency.

The OTCEI India's first screen based.

FINANCIAL RESOURCES

ICICI meets its financial requirements through borrowings, equity and

equity linked offering in the domestic and internal markets, from loan

repayments and interest payments and through internally generated

funds

RUPEES RESOURCES ICICI raises rupees funds through issues

of bonds, convertible debentures and other borrowing from a

range of investors, including banks, investment institutions,

public sector units, port trust, quasi-government provident funds

(employees schemes) bodies corporate & the household sector.

FOREIGN CURRENCY BORROWINGS- ICICI has raised foreign

currency resources from multilateral institutions, official bilateral

sources (including export credit) and from commercial sources.

MULTILATERAL AND BILATERAL BORROWINGS

Traditionally, ICICl's major foreign currency borrowings have

been from multilateral institutions and guaranteed by the

government of India. ICICI has obtained lines of credit from

world bank directly or through the government of India and

60
 Asian Development Bank(ADB). Bilateral Borrowings, ICICI has

obtained lines of credit from Kreditanstalt furwiederaufbau,

Commonwealth Development corporation of the united Kingdom,

several export credit agencies, overseas development

administration of the united Kingdom through the government of

India and from Japan Bank for international Co-operation, Japan.

COMMERCIAL BORROWINGS- ICICI has raised its commercial

borrowing in form of Euro credits and loans, floating and fixed

rate bond issues, private placement and Euro-commercial paper

programs backed by a note issuance facility.

ICICI has diversified its liabilities by borrowings in various

markets in US Dollars, Deutsche Marks, Swiss Francs, Japanese

Yen, Pounds Sterling and ECUs.

CAPITAL ADEQUACY -ICICI is subject to the capital adequacy

requirements of RBI, which requires a minimum total capital

adequacy ratio 90/0 of which at least 4.5% must be Tier 1

capital. Tierl capital comprises paid-up capital and free reserves.

SHARE HOLDING PATTERN ICICl's major share holders are

financial institutions, such as the life insurance corporation of

61
 India (LIC) General Insurance corporation (GIC) and its

subsidiaries, Unit Trust of India and other financial Institutions.

STRATEGIC INITIA TIVES

ICICl's objective is to enhance its position as India's premier financial

services provider. The key element of ICICl's business strategy is to:

*focus on quality growth opportunities by:

- maintaining and enhancing strengths in corporate

banking;

- Building a strong retail franchisee;

* emphasize conservative risk management practices. and enhanced

asset quality;

*use technology for competitive advantages; and

*attract and retain talented professionals.

Stages in buying various ICICI products :-

Perceive wants of financial product through the advertising or any

other sources.

62
 Information search about competitive institution, returns service and

after sales.

Sources of information

Printed media Visual media Personal media

ICICI

POST OFFICES

BANKS

U. T.I.

KARVY

SDLC

ICICI has been chosen of goodwill and additional features like

better returns, better options of investment etc.

Satisfaction after investing in ICICI product and then purchase and

further suggest to buy the various products of the same organization.

Buying Behaviour:

Consume decision making varies with the types of the buying

decision. The decision to buy any financial product is quit different

from buying any other product. There are four types of buying

behavior.

1. Complex Buying Behaviour:

63
 Consumer engages in complex buying behavior when they

are highly involved in purchase and aware of significant

difference among brands. This usually the case when the product

is expensive bought infrequently, risky and highly self

expressive. For example, a person buying a personal computer

may not know what attributes to look for many of the product

features carry no meaning unless the buyer has done some

research 16 K memory, disk storage, screen resolution and so

on.

High involvement Low involvement

Significant Difference
Variety Seeking Buying Complex Buying Between
Behavior Brands Behavior
Few Difference Between Dissonance-Reducing Habitual Buying
Brands Buying Behavior Behavior

Four types of Buying Behavior--:

2. Dissonance Reducing Buving Behavior:

Sometimes the consumer is highly involved in a purchase but

sees little difference in the brands. The high involvement based on the

fact that purchase is expensive, infrequent and risky- In this case, the

buyer will shop around to learn what is available but will buy fairly

quickly. For example carpet.

3. Habitual Buying Behavior:

Many products are bought under condition of low consumer

64
involvement and the absence of significant brand differences. Like salt.

Consumer have little involvement in this product category. They go to

the store and reach for the brand. If they keep reaching for the same

brand, It is out of habit, not strong brand loyalty. There is good

evidence that consumer have low involvement with most low cost,

frequently purchased products.

4. Variety Seeking Buying Behaviour:

Some buying situations are characterized by low consumer

involvement but significant brand differences are consumers often do a

lot of brand switching.

Market segmentation:

Market segmentation is defined as " the process of taking the

total heterogeneous market for a product and dividing it into several

sub markets or segments, each of which tends to be

homogeneous in all significant".

Criteria for successful segmentation:

Substantiality refers to the size of segmented markets.

Segments must be large enough to permit viable market effort

directed towards them.

Measurability of the segment means that it must be capable of

measuring the changing behavior patterns of consumers.

Accessibility means the segments must permit the firm to direct

successfully different marketing effort toward the segments.

65
 Represent ability that is the segments must be representative in

nature and must have individually of their own.

Nature of demand refers to the different qualities demanded by

various segments.

Responses rates means that the segments must shoiw

differences in responses to the marketing variables.

Benefits of Segmentation:

The manufacturer is in the better position to find out and

compare the marketing potentialities of his products. He is able

to judge product acceptance or assess the resistance to his

product.

The result obtained from market segmentation is an indicator to

adjust the production, using men, material and other resources

in a most profitable manner.

Changes required may be studied and implemented without

losing market. As such as soon as the product becomes obsolete,

or even earlier, the product line could be diversified or even

discontinued.

It helps in determining the kinds of promotional dives that are

effective and also helps to evaluate their results.

Appropriate timing for the introduction of new products,

advertising, etc., could be easily determined.

Methods of Segmenting Markets:

66
The segments fall between two extremes of total homogeneity and

heterogeneity. The various segments are shown below:

Geographic Segmentation

Age group

Demographic Segmentation Family

Life cycle

Sex

Souci -Economic Segmentation

Product Segmentation

Benefit Segmentation

Volume Segmentation

Marketing -Factor Segmentations

Market Segmentation for ICICI Products:

The market segmented on the three basis that is :

Customer based segmentation

Product related segmentation

Competition based segmentation

Under the customer based segmentation again the two

classification there are there that is Geographic location of customer

and demographic characteristics. The geographic location of customers

67
are divided in three categories that is :Rural location, Urban location,

Semi-Urban location.

In demographic characteristics the factor are age, sex, income,

occupation education and family size & structure.

Age: Under the age groups, ICICI do not have any concern to

infant market and it have totally concern for youth market (20-

35 years), middle aged market (36-50 years) & elder senior

market (50&Above).

Sex: It is not much important for ICICI except in case, the investor is

differentiated as male and female.

Income: ICICI is concerned only for middle Income, upper middle

income and higher income. Middle-income people involves as

government servicemen, self-employed in middle and lower level

management in private concern. Upper middle income involves the

person who luxuries product like air travel holidays special places and

etc. Higher income group involves businessmen exporters and higher-

level executives.

Occupation: Occupation involve the category through the person earns

i.e. a self employed, professionals, traders, servicemen and etc.

Education: Education part is much important here. The more the

customer is educated the more will be his awareness for new

technology or would like to get aware of new things.

Family size & structure: The family size also effects the investment

68
planning of the investor It have a iverse relation mwith the investment

i.e. the large will be the family the less will be the investment and

vice-versa.

Now the another factor is Product related segment, which involves the

various products of ICICI. The products are Bonds, Fixed Deposits,

Demat A/C, RBI Relief Bonds and Mutual Fund. These products are

already been explained so many times.

The last factor is competition based segment which involves the

classification on the basis of the custimer loyalty. The customers are

classified as under:

Hard core loyals: These are customer who are completely devote to

a single brand.

Soft core loyals: These are the customer who are loyal to more than

two brands.

Switcher overs: These are the customers who easily switch oveer to

the next brand by considering only two three positive facctors.

Savings Bank Account

How to Open an Account ?

Download or obtain Account Opening Form from the nearest branch, fill it

up properly and deposit the same with the branch of your choice along

with the following :-

69
 1. Furnish proof of Residence (In the form of a copy of Ration Card/

Passport/ Driving Licence/ Electricity Bill/ Telephone Bill/ Identity

Card issued by any reputed institution. ORIGINALS be shown

only at the time of scrutiny of papers)/ Business address.

2. Furnish 2 photographs of all the prospective account holder(s).

3. Introduction about you from a person known to the bank

preferably by an Account Holder of the Branch, whose account

has run satisfactorily at least for the past six months.

4. Furnish PAN or declaration of Form No. 60 / 61 as the case may be.

5. Minimum deposits.

SALES PROMOTION SCHEMES OF ICICI BANK

Resident Foreign Currency (Domestic) Account (RFCD)

Resident Indians are permitted to open, hold and maintain

Resident Foreign Currency (Domestic) Account out of foreign

exchange acquired in the form of currency notes, bank notes,

travelers cheques and out of, foreign exchange earned and/or gifts

received from close relatives (as defined in the Companies Act) and

repatriated to India through normal banking channels by resident

70
individuals. Foreign exchange earnings could be through export of

goods and/or services, royalty, honorarium, etc.

Opening, holding and maintaining a Resident Foreign Currency

(Domestic) Account

Resident Foreign Currency (Domestic) Account can be opened

with designated ICICI Bank branches in India.

Accountholders can deposit foreign exchange earnings

repatriated to India through banking channels. The earnings

could be out of export of goods and/or services, royalty,

honorarium etc.

Resident Foreign Currency (Domestic) Account can also be

opened/credited with currency notes, bank notes and travellers

cheques

Account holder can credit Resident Foreign Currency Account

(Domestic) with foreign currency :

o saved from an individual's trip outside India,

o received as honorarium during an individual's trip outside

India

o received as gift from persons on visit to India, and

71
 o received from a person on a visit to India for services

rendered to him in India.

o received as sales proceeds of sponsored ADRs/GDRs which

have approval of Foreign Investment Promotion Board

(FIPB)

These accounts are not interest bearing

There is no ceiling on the balances that can be built up in these

accounts.

The balances held in these accounts can be used for any purpose

for which foreign exchange can be bought from a bank in India.

Permissible currencies for opening Resident Foreign Currency

(Domestic) Account

Pound Sterling (GBP)

US Dollar (USD)

Japanese Yen and (JPY)

EURO (EUR)

Please note:

72
 Deposit in multiple currencies in a single account is not

permitted. Account can be opened in only one currency.

An individual is permitted to maintain multiple accounts.

Operating the account

Account holders will be issued the following instruments for transacting

in the account:

a. Foreign Currency Cheque Book for international transactions

b. Cash withdrawal slip for Rupee withdrawals across the counter.

During a day accountholder cannot withdraw more that USD 2000 or

equivalent in permissible foreign currency, from RFC (D) account.

There is no restriction on cash withdrawals in INR

c. Pay-in slip book for deposits into the account

Other benefits

Nomination Facility is available on RFC(D) Accounts, if opened in

single name.

Statement of accounts on quarterly basis will be sent to the

depositors.

73
Purposes for which resident Indian can buy foreign exchange

from a bank in India

A Resident Indian, can buy foreign exchange without permission from

the Reserve Bank of India for:

Private Travel

Resident Indian can avail of foreign exchange upto US$ 10,000

in any calendar year for tourism or private travel to any country

other than Nepal and Bhutan on the basis of self-certification.

Study Abroad

Resident Indian can buy foreign exchange upto US$ 30,000 or

upto the estimate from the institution abroad, whichever is

higher, per academic year on the basis of simple documentary

evidence indicating the requirement.

Medical Treatment

Resident Indian can buy foreign exchange on the basis of self-

certification, upto US$ 50,000 to meet the expenses for medical

treatment outside India. Banks are also permitted to release

exchange required in excess of US$ 50,000, on the basis of

estimate from a doctor or hospital in India or overseas.

74
 Resident Indian can also buy foreign exchange upto US$ 25,000

per person for meeting boarding/lodging/travel expenses of the

patient and also the accompanying attendant on self-

certification.

Employment Abroad

Resident Indian can buy foreign exchange upto US$ 5,000 on

production of letter of employment.

Emigration

Resident Indian can buy foreign exchange upto US$ 5,000, or

amount prescribed by country of emigration on the basis of

emigration visa.

Remittance for Miscellaneous Purposes upto US$ 500

Resident Indian can remit foreign exchange outside India upto

US$ 500, for miscellaneous purposes, without production of any

document provided the rupee equivalent is paid by debit to your

account, cheque or by demand draft.

Gifts and Donations

Resident Indian can gift/donate upto US$ 5,000 every year on

self-certification.

75
Foreign Exchange/TCs can be purchased

From all designated branches of ICICI Bank. If the rupee

equivalent exceeds Rs.50, 000/-, the entire payment has to be

made by way of a crossed cheque/banker's cheque/pay

order/demand draft only.

How to open Resident Foreign Currency (Domestic) Account

Fill in Resident Foreign Currency (Domestic) Account

application form. Application forms are available at all designated

branches of ICICI Bank.

Submit duly filled application form with any designated branch of

ICICI Bank.

SALES PROMOTION

Sales promotion is one of the four aspects of promotional mix. (The

other three parts of the promotional mix are advertising, personal selling,

and publicity/public relations.) Media and non-media marketing

communication are employed for a pre-determined, limited time to

increase consumer demand, stimulate market demand or improve

product availability. Examples include:

contests

76
 point of purchase displays

rebates

free travel, such as free flights

Sales promotions can be directed at either the customer, sales

staff, or distribution channel members (such as retailers). Sales

promotions targeted at the consumer are called consumer sales

promotions. Sales promotions targeted at retailers and wholesale are

called trade sales promotions. Some sale promotions, particularly

ones with unusual methods, are considered gimmick by many.

Consumer sales promotion techniques

Price deal: A temporary reduction in the price, such as happy hour

Loyal Reward Program: Consumers collect points, miles, or

credits for purchases and redeem them for rewards. Two famous

examples are Pepsi Stuff and AAdvantage.

Cents-off deal: Offers a brand at a lower price. Price reduction

may be a percentage marked on the package.

Price-pack deal: The packaging offers a consumer a certain

percentage more of the product for the same price (for example,

25 percent extra).

77
 Coupons: coupons have become a standard mechanism for sales

promotions.

Loss leader: the price of a popular product is temporarily reduced

in order to stimulate other profitable sales

Free-standing insert (FSI): A coupon booklet is inserted into the

local newspaper for delivery.

On-shelf couponing: Coupons are present at the shelf where the

product is available.

Checkout dispensers: On checkout the customer is given a

coupon based on products purchased.

On-line couponing: Coupons are available on line. Consumers

print them out and take them to the store.

Mobile couponing: Coupons are available on a mobile phone.

Consumers show the offer on a mobile phone to a salesperson

for redemption.

Online interactive promotion game: Consumers play an

interactive game associated with the promoted product. See an

example of the Interactive Internet Ad for tomato ketchup.

78
 Rebates: Consumers are offered money back if the receipt and

barcode are mailed to the producer.

Contests/sweepstakes/games: The consumer is automatically

entered into the event by purchasing the product.

Point-of-sale displays:

o Aisle interrupter: A sign the juts into the aisle from the

shelf.

o Dangler: A sign that sways when a consumer walks by it.

o Dump bin: A bin full of products dumped inside.

o Glorifier: A small stage that elevates a product above other

products.

o Wobbler: A sign that jiggles.

o Lipstick Board: A board on which messages are written in

crayon.

o Necker: A coupon placed on the 'neck' of a bottle.

o YES unit: "your extra salesperson" is a pull-out fact sheet.

79
Trade sales promotion techniques

Trade allowances: short term incentive offered to induce a

retailer to stock up on a product.

Dealer loader: An incentive given to induce a retailer to purchase

and display a product.

Trade contest: A contest to reward retailers that sell the most

product.

Point-of-purchase displays: Extra sales tools given to retailers to

boost sales.

Training programs: dealer employees are trained in selling the

product.

Push money: also known as "spiffs". An extra commission paid

to retail employees to push products.

Trade discounts (also called functional discounts): These are

payments to distribution channel members for performing some

function .

Political issues
Sales promotions have traditionally been heavily regulated in many

advanced industrial nations, with the notable exception of the United

States. For example, the United Kingdom formerly operated under a resale

80
price maintenance regime in which manufacturers could legally dictate

the minimum resale price for virtually all goods; this practice was

abolished in 1964.[1]

Most European countries also have controls on the scheduling and

permissible types of sales promotions. Germany is notorious for having

the most strict regulations. Famous examples include the car wash

that was barred from giving free car washes to regular customers and

a baker who could not give a free cloth bag to customers who bought

more than ten rolls.

MARKETING MIX FOR ICICI

Product:

ICICI LTD. Have 5 types of product in financial world. Bonds are

the products, which create a safety guard towards taxes. Fixed

deposits could either be used as a source of regular income for a

specified period or could be a source of cumulative income after a

specified period of time.

Mutual Funds are the most suitable investment for the common

81
man as it offers an opportunity to invest in a diversified, professionally

managed basket of securities at a relevant cost.

Price:

ICICI products are not highly trust worthy for the middle class

families because of less awareness but nowadays these products are

highly demand because of goodwill. As per the competition ICICI

charges are also similar to the other organizations for ego Interest on

F.D. are according to the government regulation, Demat charges are

according to the competitive organizations, and etc. the charges of

various products varies from time to time i.e. according to the

following budget.

Place:

Aurangabad is a place where I did my survey. Aurangabad is a big city

and total population of Aurangabad is about 220 lakhs.

I have taken 100 of people in Aurangabad those belong to high-class

society.

There are so many agents of ICICI working in Aurangabad market, the

main one under whom I had done my project are:

Mr. Gautam Shukla & Mr. Sameer Metha

Just opposite to SAP Institute

Near Sanjay Talkies

Aurangabad.

The location of this center is very good.

82
Promotion:

There are some promoting tools that has been adopted by

company.

Television:

ICICI product's advertisements can be find on approximately every

channel ego DD 1, Metro, Star plus, ZEE etc.

News Paper:

Hindustan Times, Times of India, and Lokmat Times in

AURANGABAD.

Hoarding:

Hoarding are also part of advertis.ement of ICICI product.

Public relation:

This is the effective media for ICICI products in AURANGABAD.

PRODUCTS OF ICICI

A product occupies a dominant position among the four element

of marketing mix. In fact planning & development of the marketing

mix normally begins with a dear idea of the firms product or service.

In the words of Philip Kotler," a product is anything that can be

offered to a market for attention, acquisition, use or consumption. It

includes physical objects services, personalities, place, organization

and ideas".

83
ICICI has launched a wide range of consumer products. These are as

follows:

1. BONDS: ICICI is offering for public subscription unsecured

redeemable bonds in the nature of debentures, which are of following

types:

Tax Saving Bonds: Investors can avail of rebate under section 88 of

the income tax act,1961 by investing in this bonds.

Regular Income Bonds: This bond has been designed keeping in

view the need for a regular income to meet expenses that are incurred

on a regular basis. The product also helps provide a source of income

to individuals who have either a variable income (self employed

professional, etc.) or who are not employed any longer.

Money Multiplier Bond( in the nature of Deep Discount bond):

Events such as a child's wedding, education, purchase of a house,

car etc, require a lumpsum at a particular point of time. This

product has been designed to meet these and similar such

requirements. Each money multiplier bond is the nature of Deep

Discount bond will have a different face value under each option

and will be issued at a discounted price.

Children Growth Bond (in the nature of Deep discount bond):

This bond has been designed to provide for lump sum expenditure

requirements once the child has growth up for events

such as the child's wedding, higher education etc.

84
 Pension bond: This bond has been designed to meet the needs

of those who wish to plan for their requirement. A monthly pension

can be received by the investor after a selected wait period. the wait

period can be chosen on the basis of the age of the investor and the

likely age of requirement, after which pension bond would provide a

monthly source of pension. The monthly pension would comprise

interest and principal repayments in the form of Annuity. There shall

be no re-payment of lumpsum principal at the time of maturity of the

bonds.

2. FIXED DEPOSIT: Fixed deposits as the name suggests are

investments yielding a fixed rate of return. Fixed deposits are a good

way to add stability to and investors portfolio. Their returns, being

fixed are not dependent on market conditions. It is well known to

investor that how he is going to earn and when his principal will be

returned. There are several factors, which have to be taken into

consideration for ego

Returns: Returns are the chief deciding factor in case of any

investment. These are of two types, regular and cumulative. In case of

regular returns, returns are paid on principal amount at the end of

specified period. While in case of cumulative returns, returns are

calculated on principal amount but are paid only at the time of

mat6urity of the deposit.

Credit Rating: Some of the credit rating agencies like ICRA,

85
CRISIL, and CARE which rate the companies considering the factors

like, profit, liquidity position, the assets, quality, financial and

managerial policies, available for absorbing the provisions etc.

Servicing: The kind of service that the company or the bank

offers also plays a major role in decision making process.

Other services: The other services provided by different

institution for different kind of deposits are also considered for ego

Loan against deposit, premature withdrawal facility and insurance

benefits etc.

ICICI Fixed Deposits:

Higher safety-"AAA" rated

Tax Benefit under section 80L

No TDS on interest up to RS.5000 in a financial year

ICICI Fixed Deposits Schemes

*ICICI Cumulative Deposits

Period minimum Maturity value* * Yield to investor

(months) amount*(RS.) of Rs.1 000 (% P.a.)**

12 15,000 1097.50 9.75

24 15,000 1216.50 10.30
36 15,000 1358.50 10.60

*ICICI Regular Income Deposit Annual Income Plan

86
 Period Minimum Rate of interest

(Months) Amount*(RS.) (%P.a.)**

12 15,000 9.75
24 15,000 10.75
36 15,000 10.50

*ICICI Regular Income Deposit Semi-Annual Income Plan

Period Minimum Maturity Value** Yield to investor

(months) amount * (Rs.) Of Rs.1,000 (% P.a.)**

12 15,000 9.50 9.73

18 15,000 9.75 9.99
24 15,000 10.00 10.25
36 15,000 10.25 10.51

*ICICI Regular Income Deposit Monthly Income plan

Period Minimum Rate of Interest Yield to investor

(months) amount*(RS) (%P.a.) (0/0 P.a.)**

12 15,000 9.25 9.65

12 30,000 9.50 9.65
18 20,000 9.60 10.03
24 20,000 9.75 10.20
36 15,000 10.00 10.47

87
* Additional amount in multiplies ofRs.1,000

**Subject to TDS (only it the interest payable/accrued during the

financial year exceeds Rs.5,OOO in aggregate) then

prevailing tax laws.

3. RBI Relief Bonds: These are not the own product of ICICI but

ICICI act as a broker of government to the customers for providing

these bonds. These are the bond having 8.50/0 rate of interest and

fully tax free bonds. The interest is received by the investor in any of

the two options i.e. half-yearly interest option (interest paid after six

months) and cumulative interest option ( interest is paid after the

maturity period) . The investor may option any of the way to open an

account for the scheme.

1 :Bond Ledger account option: In this option the investor can open

account through any of the designated organization of his city for e.g.

In Aurangabad the organizations are take SBI, SHCI etc.

2. Direct Investment method: In the second option the investor

directly send the amount to Kanpur office through Demand Draft

and as a response get their account opened.

People mainly prefer the first option to save their DD charges.

4. Demat Ale: A Demat ale is just about the same as a bank account.

You keep cash while in a Demat account can be opened with a

registered depository participant which includes financial institutions

like ICICI benefits of opening a Demat a/e

88
*No loss of share certificates.

*Less time required for share transfer

*No postal delays *N 0 bad deliveries.

*No fake, forgery or counterfeit of transfer documents and certificates.

*No filling of transfer deeds and affixing of share transfer stamps.

*Ready acceptance of securities held in electronic form for pledge and

hypothecation.

CHAPTER 3

89
 DISCUSSIONS

ON TRAINING

3.1 STUDENTS WORK PROFILE (ROLE AND

responsibilities)

I have undertaken an exploratory research on the customers of

State Bank of India. The data is collected through questionnaire by

direct interaction with the customers. The major part of study focuses

on the preference, satisfaction and awareness of the customers

towards the products and services of State Bank of India. I focused on

the primary data collected by the questionnaire. I take a sample size

of 100 respondents and I use close ended directive question which are

self designed and mainly concerned with awareness of customers,

satisfaction level of customers by products and services of the Bank

and preference of customers i.e. whether they prefer nationalized

90
bank. The whole study mainly focuses on the personal banking and

knowing the customers satisfaction level.

As a trainee Bank also assign me to visit the various markets in

Dadora, Etawah and formulate the data regarding customers existing

Bank & the services provided by that Bank. My responsibility to tell the

customers about the various products and services of the Bank like

saving account, current account , FDs and other investment policies of

Banks corporate agent SBI LIFE INSURANCE CO. Sometimes Bank

provide me the basic knowledge of Bank operations.

3.2 DESCRIPTION OF LIVE EXPERIENCE

The exploratory study of customers perception and satisfaction

of State Bank of India, Dadora, Etawah branch helped us in

understanding the basics of communication while interacting with

customer to know their views on bank performance. For collecting

views of customer I developed a Questionnaire, during the process of

developing questionnaire I learned to formulate Questions in order to

get right type of specific information. I learned about open ended

questions, close ended questions, direct questions, indirect questions.

The process of designing Questionnaire helped me to learn about and

understand different types of scales and scaling techniques.

91
 The study gave me an exposure and an Opportunity to

understand non-verbal cues transmitted by customers while answering

questions from Questionnaire. It helped me to know importance of

personal survey technique against observation technique, used for

knowing customer mind setup in relation to particular product and

services. The data collecting during survey helped me to learn

analyzing and interpreting data, reducing interference and conclusion

with help of different statistical tools. Study gave me full knowledge

about interaction with customers, status of full Banking Industry and

the required documents for opening an account.

CHAPTER 4

STUDY OF

92
SELECTED RESEARCH

PROBLEM

4.1 STATEMENT OF RESEARCH PROBLEM

Comparative Analysis of Financial Policies of SBI and

ICICI Bank"

4.2 RESEARCH OBJECTIVES

To study about of SBI and ICICI Bank.

To study the different products & services provided by SBI

and ICICI Bank..

93
 To identify customer perceived major strengths & weakness of

services offered by SBI and ICICI Bank..

To measure the level of satisfaction with regard to services,

interpersonal behaviour & work time schedule among the

customers of SBI and ICICI Bank..

To find out the customers views towards investment schemes

of SBI and ICICI Bank.

4.3 RESEARCH DESIGN AND METHODOLOGY

A good methodology is the life blood of work

(PETER EICH)

Research methodology is the way to systematically solve the

research problem. In it we study the various steps that are generally
adopted by researcher in studying in his research problem along with
the logic behind them.

It is necessary for the researcher to know research method,

technique & the methodology, researcher also need to understand the
assumption underlying various technique & they can decide that
certain techniques & procedures will be applicable to certain problem &
other will not be.

To conduct a research in any field. It is necessary that is study

method & a way to approach certain things should be correct & is
systematic way. Thus to start a survey of project, its methodology

94
should be to the point. It is correct methodology is the key to any
survey

The success of any desertion work largely depends upon correct

selection & the application of the nature of the proposed study, nature
of information to be covered in desertion.

For the exploratory research undertaken to study the satisfaction

level & related issues among the management trainees of State Bank
of India, mainly collected two kinds of data, i.e. Primary data &
Secondary data.

(1) Primary data:-

Primary data are those, which are collected afresh & for
the first time.

Personal unstructured interview of the employee of the bank.

Distribution of the questionnaires among the bank employee to

gather information.

Primary data collected through personal interview method &

findings. There of is to be used with understanding of sample size
of 100 respondents is small when compared to total account
holders.

Focus of study is respondents using personal banking only.

With introduction of new services, customer preference change with

time. This study provides significant insight about customer
attitude & preference as observed at time of study.

(2) Secondary data collection:-

95
 Secondary data which has already been collected &
analyzed by some one else

Documents given by bank.

Internet information & websites

Book & magazines.

Information given by customers.

Pamphlets & form of State Bank of India.

SAMPLING PLAN

Population Or Universe
All the existing customers of State
Bank of India & customers of other
banks.

Sampling Unit Customers of State Bank of India &

other Banks living at Dadora, Etawah
city specially in Dadora, Etawah

96
Sampling Size The sampling size of the study is 100
people from the selected population.

Sampling Method The sampling method will convenience

method

Sample design Sampling design is Area sampling that

is related to random sampling design.

4.4 ANALYSIS OF DATA

1. To select your bank you give preference to which?

a) ICICI Bank b) SBI Bank

97
2. If you select private bank you give preference to which bank?

a) SBI c) ICICI

b) HDFC d) Axis

3. How you introduce with this bank?

a) Newspaper c) Television

b) Public d) Employee

98
4. Are you satisfied with the services of the bank?

a) Yes b) No

5. What is the level of the behaviour of the bank employees

towards the customers?

a) Best c) Good

b) Average d) Below average

99
6. Are the employees present on the counter when you visit the

bank?

a) Yes b) No

7. What is the level of the services of enquiry, sitting facility and

drinking water etc?

a) Best c) Good

b) Average d) Below Average

100
8. In which areas you face problem in bank services ?

a) Cash transaction b) Customer service

c) Issuing & payments of drafts
d) Payments of out station cheques e) None

101
8. Are you have ATM card or want to use this facility?

a) Yes b) No

9. To improve ATM services what should do by bank ?

a) More ATMs c) Free of charge

102
 b) More Limit for transaction d) Others

10. Are you have knowledge about the credit card?

a) Yes c) No c) Dont know

11. You give preference to which bank for credit card?

a) Private bank c) Nationalized

b) Both d) None

103
12. Do you have or wish to a loan policy?

a) Personal loan c) Home loan

b) Education Loan d) Auto loan

13. Do you have or wish to a fixed deposit policy?

a) Yes b) No

104
14. What is level of trust and reliability on the bank?

a) High c) Medium

b) Low d) Dont know

16. Do you have or wish to investment policy of State Bank of India?

a) Yes b) No

105
4.5 SUMMARY OF FINDINGS

106
 Customer give preference to 70%

Nationalized bank and 30% Private Bank.

Customer give preference to 40%

State Bank of India, 15% ICICI Bank, 20% HDFC Bank and 10%

Axis Bank.

Customer introduce with this bank

by medium i.e 10% Newspaper, 20% Television, 30% Public and

40% Employee.

Customer 75% satisfied with the

services of the bank and 25% not satisfied with the services of

the bank.

The level of the behaviour of the

bank employees towards the

customers 30% Best, 15% Good, 25% Average and 30% Below

average.

The employees present on the

counter when 60% customers visit the bank and 40% customers

not visit the bank.

The level of the services of enquiry,

sitting facility and drinking water etc i.e. 45% Best, 30% Good,

15% Average and 10% Below Average.

In which areas you face problem in

bank services i.e. 10% Cash transaction, 15% Customer

107
 service, 20% Issuing & payments of drafts, 35% Payments of

out station cheques and 20% None.

Customer have ATM card or want

to 90% use this facility and 10% not used this facility.

The bank improved ATM services

should be 30% More ATMs, 40% Free of charge, 20% More Limit

for transaction and 10% Others.

40% Customer have knowledge

about the credit card and 30% not know about credit card and

30% don't know about credit card.

Customers give preference 10% to

Private bank, 30% to Nationalised, 20% both and 40% none of

these.

customer have or wish to a 40%

Personal Loan, 10% Home Loan, 25% Education loan and 35%

Auto Loan.

Customer have or wish to a fixed

deposit policy i.e. 75% Yes and 25% No.

The level of trust and reliability on

the bank 50% High, 30% Medium, 15% Low and 5% Dont

know.

108
 CHAPTER 5
SUMMARY AND
CONCLUSIONS
109
 5.1 SUMMARY OF LEARNING EXPERIENCE

Under training Bank assign me to visit the various markets in

Dadora, Etawah and formulate the data regarding customer exists

Bank & the services provided by that Bank. This learned me to

communicate & interact with different customers. My responsibility to

tell the customers about the various products and services of the Bank

like saving account, current account , FDs and other investment

policies of Banks corporate agent AVIVA LIFE INSURANCE CO. This

gave me an opportunity to know that how can sale banking &

insurance products. Sometimes Bank provide me the basic knowledge

of Bank operations. This made me aware about the banking internal

operations.

The exploratory study of customers perception and satisfaction

of State Bank of India, Dadora, Etawah branch helped us in

understanding the basics of communication while interacting with

customer to know their views on bank performance. For collecting

110
views of customer I developed a Questionnaire, during the process of

developing questionnaire I learned to formulate Questions in order to

get right type of specific information. I learned about open ended

questions, close ended questions, direct questions, indirect questions.

The process of designing Questionnaire helped me to learn about and

understand different types of scales and scaling techniques.

5.2 CONCLUSIONS AND RECOMMENDATIONS

CONCLUSIONS

Banking business in the Modern banking scenario is very helpful

to both Banks and their customers. In the Modern scenario services

like ATM, Phone Banking, Online Banking and Debit/Credit Card are

very useful to banks and their customers. All these components of

modern banking raise the customers to the Bank.

In older days, though not many people were directly involved

with the banks but still the whole process of the bank's day-to-day

work was very tire-some and very time consuming. All the works like

maintaining of accounts, Ledger entries, complex calculations of each

and every customer was done manually which many a times resulted

in mistakes & errors and getting those errors rectified was again a

very boring job.

111
 But now since the introduction of computers in today's concept

of modern banking, all the maintenance of accounts etc. have become

a matter of just a few keys strokes with almost neutralizing the

chances of mistakes.

So the whole banking business has become so very fast and

easy to operate that even a child of minor age can maintain his

account by himself and all do kinds of interactions with the bank.

So to conclude we can say that the concept of modern banking

has contributed a lot in the banking business and has helped to

increase the customers of the bank as well as the quality of services

provided to the customers.

RECOMMENDATIONS

1. 65% of the people run their own account in

some or the other bank but 35% person does not have any

account in any bank. So this is the opportunity for the banks to

increase their account volume.

2. 70% person have knowledge about ATM but

30%person have no knowledge about ATM so if the bank grants

knowledge to the persons about ATM. then bank can increase

their ATM service.

112
3. 60% persons are aware with, the Debit

Card/Credit Card.40% persons are not aware. So this is the

opportunity for the banks to increase their business of Debit

Card and Credit Card.

4. 60% people have knowledge about online

banking 40% people have not knowledge about online banking.

So the Banks should take step to aware to person about online

banking.

5. 20% people have Demat account, 80% person

have no Demat account so this is also an opportunity to the bank

for increasing their Demat accounts Volume.

6. Bank Should go for expansion of both branchs

and ATMs in all over the city & rural area also.

113
114
 QUESTIONNAIRE

1. To select your bank you give preference to which?

a) ICICI Bank b) SBI Bank

2. If you select private bank you give preference to which bank?

a) SBI b) ICICI c) HDFC d) Axis

3. How you introduce with this bank?

a) Newspaper c) Television c) Public d) Employee

4. Are you satisfied with the services of the bank?

a) Yes b) No

5. What is the level of the behaviour of the bank employees towards the customers?

a) Best b) Good c)Average d) Below average

6. Are the employees present on the counter when you visit the bank?

a) Yes b) No

7. What is the level of the services of enquiry, sitting facility and drinking water etc?

a) Best b) Good

c) Average d) Below Average

8. In which areas you face problem in bank services ?

a) Cash transaction b) Customer service

c) Issuing & payments of drafts

d) Payments of out station cheques e) None

9. Are you have ATM card or want to use this facility?

a) Yes b) No

10. To improve ATM services what should do by bank ?

a) More ATMs b) Free of charge

 c) More Limit for transaction d) Others

11. Are you have knowledge about the credit card?

a) Yes b) No c) No d) Dont know

12. You give preference to which bank for credit card?

a) Private bank b) Nationalized

c) Both d) None

13. Do you have or wish to a loan policy?

a) Personal loan b) Home loan

c) Education Loan d) Auto loan

14. Do you have or wish to a fixed deposit policy?

a) Yes b) No

15. What is level of trust and reliability on the bank?

a) High b) Medium

c) Low d) Dont know

16. Do you have or wish to investment policy of State Bank of India?

a) Yes b) No

BIBLIOGRAPHY

Through State Bank of India Sources.

 Through Internet

www.statebankofindia.com

Through Managers

Magazines- Outlook money, Business Economies