PROJECT REPORT

ON
EXTERNAL APPRAISAL TO STUDY MARKETING POTENTIAL OF
BANKING IN JAIPUR

In partial fulfillment of Summer Internship for the award of the degree

of
MASTER OF BUSINESS ADMINISTRATION
IN
MARKETING

Jaipur National University

Supervised By: Submitted By:

Prof. Rajesh Mahrotra Smriti Rajawat

MBA Dual

Sem III

1
 ACKNOWLEDGEMENT

The satiation and euphoria that accompany the successful completion of the project would be
incomplete without the mention of the people who made it possible.
I would like to take the opportunity to thank and express my deep sense of gratitude to my
faculty mentor Prof. Rajesh Mehrotra. I am greatly indebted to both of them for providing
their valuable guidance at all stages of the study, their advice, constructive suggestions,
positive and supportive attitude and continuous encouragement, without which it would have
not been possible to complete the project.
I would also like to thankmy corporate mentorMrs. Chanchal Jeffery Titus who in spite of
busy schedule has co-operated with me continuously and indeed, his valuable contribution
and guidance have been certainly indispensable for my project work.
I am thankful to Mr. Jasvinder Singh (D.G.M.- LHO) for giving me the opportunity to work
with State Bank of India and learn.
I owe my wholehearted thanks and appreciation to the entire staff of the company for their
cooperation and assistance during the course of my project.
I hope that I can build upon the experience and knowledge that I have gained and make a
valuable contribution towards this industry in coming future.

2
3
 DECLARATION

I undersigned Smriti Rajawat student of MBA 3rd semester declare that I have done the
project on “Geomapping at State Bank of India” has been personally done by me under the
guidance of Prof. Rajesh Mehrotra in partial fulfillment of MBA Program- during academic
year-2018-19. All the data represented in this project is true & correct to the best of my
knowledge & belief.

I also declare that this project report is my own preparation and not copied from anywhere
else.

Date 23-8-2018

Signature

4
 Index

1. CHAPTER 1: Introduction……………………………………………..9-30
1.1. Overview of the Industry………………………………………………..10
1.1.1. Banking Industry in India
1.2. Company Profile……………………………………………………...…12
1.2.1. About the Company
1.2.2. Vision
1.2.3.Mission
1.2.4.Values
1.2.5. The Work Culture
1.2.6. Board of Directors
1.3. Company History…………………………………………………….…18
1.3.1Evolution of SBI
1.3.2. Key dates
1.3.3. State Bank Of India History
1.4. Top Management Organizational Structure …………………………….30
1.5. Competition Overview
1.6. Awards & Achievements

2. CHAPTER 2: Literature Review………………………………………....37-43

2.1. What is Geomapping?
.…………………………………………………………………………39
2.2. GIS History…………………………………………………………….
2.3. Rajasthan Industrial Scenerio…………………………………………..

3. CHAPTER 3: Research Methodology………………………………...31-36

3.1. Objective and Scope of Study…………………………………………..32
3.1.1. Objective of the Study
3.1.2. Scope of the Study
3.2. Research Methodology………………………………………………….33
3.3. Research Design………………………………………………………...34
3.4. Sample Design…………………………………………………………..34
3.4.1. Sample Size
3.4.2. Sampling Method
3.4.3. Sample Type

5
4. CHAPTER 4: Data Analysis……………………………………..……44-69
4.1. Methods and Techniques of Data Analysis…………………………….45
4.1.1. Data Analysis Concept
4.1.2. Data Analysis Process
4.2. Detail Analysis……………………………………………………….....47
4.3. Limitation of the Study………………………………………………....
4.4. Findings………………………………………………………….……...
4.5 Recommendations and Suggestions…………………………………………………..

5. CHAPTER 6: Appendix & Bibliography…………………………….

5.1. Sample Questionnaire……………………………………………….….
5.2. Bibliography……………………………………………………….…....

6
Chapter-1
Introduction

7
 Overview of the Industry

Bank may be defined as a financial institution which is engaged in the business of keeping
money for savings and maintaining accounts and issuing loans & credit etc. A set of services
intended for private customers and characterized by a higher quality than the services offered
to retail customers.

Based on the notion of tailor-made services, it aims to offer advice on investment,

inheritance plans and provide active support for general transactions and the resolution of
asset-related problems.

The essential function of a bank is to provide services related to the storing of deposits and
the extending of credit. Basic function may include Credit collection, Issuer of
banking notes, Depositor of money and lending loans.

Now a day’s banking is not in its traditional way, with the advancement of technology it’s
focusing on more comfort of customer providing services such as:

 Online banking
 Investment banking
 Electronic banking
 Internet banking
 Pc banking/mobile banking
 E-banking

The importance of banking sector is immense in the progress and prosperity of any State
or country.

8
 INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks
Non-Schedule Banks

Central co-op
State co-op Commercial Banks Commercial Banks
Banks and Primary
Banks
Cr. Societies

Indian Foreign

Public Sector
Private Sector Banks HDFC,ICICI, Axis,
Banks
and many more.

ICICI etc.

State Bank of India Other Nationalized Banks Regional Rural

Banks

9
 Banking Industry in India

The banking scenario in India has been changing at fast pace from being just the borrowers
and lenders traditionally, the focus has shifted to more differentiated and customized
product/service provider from regulation to liberalization in the year 1991, from planned
economy to market.

Economy, from licensing to integration with Global Economics, the changes have been swift.
All most all the sector operating in the economy was affected and banking sector is no
exception to this. Thus the whole of the banking system in the country has undergone a
radical change. Let us see how banking has evolved in the past 57 years of independence.

After independence in 1947 and proclamation in 1950 the country set about drawing its road
map for the future public ownership of banks was seen inevitable and SBI was created in
1955 to spearhead the expansion of banking into rural India and speed up the process of
magnetization.

Political compulsion’s brought about nationalization of bank in 1969 and lobbying by bank
employees and their unions added to the list of nationalized banks a few years later.

Slowly the unions grew in strength, while bank management stagnated. The casualty was to
the customer service declined, complaints increased and bank management was unable to
item the rot.

In the meantime, technology was becoming a global phenomenon lacking a vision of the
future and the banks erred badly in opposing the technology up gradation of banks. They
mistakenly believed the technology would lead to retrenchment and eventually the
marginalization of unions.

The problem faced by the banking industry soon surfaced in their balance sheets. But the
prevailing accounting practices unable banks to dodge the issue.

The rules of the game under which banks operated changed in 1993. Norms or income
Recognition, Assets classification and loan loss provisioning were put in place and capital

10
 adequacy ratio become mandatory. The cumulative impact of all these changes has been on
the concept of state ownership in banks. It is increasingly becoming clear that the state
ownership in bank is no longer sustainable.

The amendment of banking regulation act in 1993 saw the entry of new private sector banks
and foreign banks. Without a sound and effective banking system in India it cannot have a
healthy economy. The banking system of India should not only be hassle free but it should be
able to meet new challenges posed by the technology and any other external and internal
factors. For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer confined to
only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached
even to the remote corners of the country. This is one of the main reasons of India's growth
process.

MAJOR PLAYER IN INDIA

1. STATE BANK OF INDIA LTD

2. HDFC BANK LTD
3. ICICI BANK LTD
4. PUNJAB NATOINAL BANK LTD
5. BANK OF BARODA LTD
6. AXIS BANK LTD
7. IDBI BANK LTD.
8. CANARA BANK LTD.
9. UNION BANK LTD.
10. BANK OF INDIA LTD.

11
 Company Profile

About The Company

State Bank of India (SBI) Group is the biggest financial services conglomerate in India.
Headquartered in Mumbai, SBI provides a wide range of products and services to
individuals, commercial enterprises, large corporate, public bodies and institutional
customers through its various branches and outlets, joint ventures, subsidiaries and associate
companies. The Group comprises of State Bank of India (SBI), its various non-banking
subsidiaries/ joint ventures, and foreign banking subsidiaries/ joint ventures.
SBI, the flagship company of the group, traces its ancestry to Bank of Calcutta founded in
1806. It was the first bank established in India, and over a period of time, evolved into State
Bank of India (SBI). SBI represents a sterling legacy of over 200 years. It is the oldest
commercial bank in the Indian subcontinent, strengthening the nation’s trillion-dollar
economy and serving the aspirations of its vast population. The Bank is India’s largest
commercial Bank in terms of assets, deposits, branches, number of customers and
employees, enjoying the faith of millions of customers across the social spectrum.
A Fortune 500 company, SBI has entered into the league of top 50 global banks with a
balance sheet size of over Rs 30 lakh crore, over 24,000 branches and 59,000+ ATMs
serving over 42 crore customers after the merger of its five Associate Banks and Bharatiya
Mahila Bank on 1st April 2017. SBI has an overseas presence through 195 foreign offices
spread across 36 Countries.
What these impressive figures do not reveal is the tremendous trust Indians repose on the
Bank. SBI has been the most trusted brand on the banking horizon in India. The Bank
believes that it owes a solemn duty to the less fortunate and underprivileged members of the
society to make sustainable social change in their lives.
The Bank has always placed the interest of the common man at its core. SBI has thoughtfully
designed products and services to meet all the needs of the financial life cycle of an average
Indian. Bank’s customized savings products are very good options for young adults to build a
corpus for themselves and their children. The variety of Home Loan products offered at very
affordable prices, personal loans, car loans, debit and credit cards and travel cards cater to
lifestyle improvement needs. While Education Loans ensure smooth completion of technical
or higher education in India and abroad, the range of Health Insurance options provide
reliable protection for aging parents and also the whole family. From vehicle and home
insurance to demat accounts and wealth management, from precious metals to private

12
 banking, SBI is at your beck and call to cater to your needs, on its own and through the group
companies.
On the technology front, SBI has expanded the digital base of the Bank manifold in recent
years. It plays a vital role in making the Government of India’s Digital India initiative a
reality. SBI has always been on the forefront to embrace changes without losing sight of its
credos like transparency, sustainability, social responsibility and customer service.

Vision

 Be The Bank of Choice For A Transforming India.

Mission
 Committed To Providing Simple,Responsive And Innovative Financial Solutions.

Values

Service
Transparency
Ethics
Politeness
Sustainability

13
 The Work Culture

Positives: Well established organization that has a deep history and enduring process flow.
Brand image is reputed and penetration in market is absolute. The level of knowledge of its
HR is a benchmark as per industry norms and it has been integrating its work force to new
generation technological challenges.

Negatives: Though the organization is one of the most leading banks in India, it lacks drive
to instigate a cultural and behavioral change that would translate the organization to be one
of the leading banks on global arena. Over standardization of process flow makes the place
dull to work in.

14
 BOARD OF DIRECTORS

List of Directors on the Central Board of State Bank of India

S.No. Name Designation Under Section

of SBI Act
1955
1. Shri Rajnish Kumar Chairman 19(a)
2. Shri P.K. Gupta Managing 19 (b)
Director
3. Shri Dinesh Kumar Managing 19 (b)
Khara Director
4. Shri Arijit Basu Managing 19 (b)
Director
5. Shri Sanjiv Malhotra Director 19 (c)
6. Shri Bhaskar Pramanik Director 19 (c)
7. Shri Basant Seth Director 19 (c)
8. Shri B. Venugopal Director 19 (c)
9. Shri Girish K. Ahuja Director 19 (d)
10. Dr. Pushpendra Rai Director 19 (d)
11. Dr.Purnima Gupta Director 19 (d)
12. Shri Rajiv Kumar Director 19 (e)
13. Shri Chandan Sinha Director 19 (f)

15
 Company History

EVOLUTION OF SBI

The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later
the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A
unique institution, it was the first joint-stock bank of British India sponsored by the
Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1
July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern
banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an arbitrary manner to modernize India's
economy. Their evolution was, however, shaped by ideas culled from similar developments
in Europe and England, and was influenced by changes occurring in the structure of both the
local trading environment and those in the relations of the Indian economy to the economy of
Europe and the global economic framework.

Key Dates:

1806:The Bank of Calcutta is established as the first Western-type bank.

1809:The bank receives a charter from the imperial government and changes its name to
Bank of Bengal.

1840:A sister bank, Bank of Bombay, is formed.

1843:Another sister bank is formed: Bank of Madras, which, together with Bank of Bengal
and Bank of Bombay become known as the presidency banks, which had the right to issue
currency in their regions.

1861:The Presidency Banks Act takes away currency issuing privileges but offers incentives
to begin rapid expansion, and the three banks open nearly 50 branches among them by the
mid-1870s.

1876:The creation of Central Treasuries ends the expansion phase of the presidency banks.

16
1921:The presidency banks are merged to form a single entity, Imperial Bank of India.

1955:The nationalization of Imperial Bank of India results in the formation of the State Bank
of India, which then becomes a primary factor behind the country's industrial, agricultural,
and rural development.

1969:The Indian government establishes a monopoly over the banking sector.

1972:SBI begins offering merchant banking services.

1986:SBI Capital Markets is created.

1995:SBI Commercial and International Bank Ltd. are launched as part of SBI's stepped-up
international banking operations.

1998:SBI launches credit cards in partnership with GE Capital.

2002:SBI networks 3,000 branches in a massive technology implementation.

2004:A networking effort reaches 4,000 branches. And State Bank of India launched its first
mobile ATM for increasing the banking convenience of its customers

2007: The State Bank of India (SBI) has become the first foreign bank to set up a branch in
the Israel's diamond exchange.

2008: Formed a Joint Venture Company which will be engaged in General Insurance
business in India.

2010: SBI has signed a pact with Unique Identification Authority of India (UIDAI) to work
as a registrar for the UID registration of residents.

2011: Acquisition of SBICI Bank

2012: SBI launched virtual debit cards to check online fraud and promote ecommerce

2014: SBI launches Tech Learning Centers (TLCs) for customers

2017: SBI Acquired State Bank of Travancore, State Bank of Patiala , State Bank of
Hyderabad, State Bank of Bikaner & Jaipur ,State Bank of Mysore & Bhartiya Mahila Bank
(BMB).

17
 State Bank of India History

The evolution of State Bank of India can be traced back to the first decade of the 19th
century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806.
The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was
the first ever joint-stock bank of the British India, established under the sponsorship of the
Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840)
and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These
three banks dominated the modern banking scenario in India, until when they were
amalgamated to form the Imperial Bank of India, on 27 January 1921. An important turning
point in the history of State Bank of India is the launch of the first Five Year Plan of
independent India, in 1951. The Plan aimed at serving the Indian economy in general and the
rural sector of the country, in particular. Until the Plan, the commercial banks of the country,
including the Imperial Bank of India, confined their services to the urban sector. Moreover,
they were not equipped to respond to the growing needs of the economic revival taking shape
in the rural areas of the country. Therefore, in order to serve the economy as a whole and
rural sector in particular, the All India Rural Credit Survey Committee recommended the
formation of a state-partnered and state-sponsored bank. The All India Rural Credit Survey
Committee proposed the takeover of the Imperial Bank of India, and integrating with it, the
former state-owned or state-associate banks. Subsequently, an Act was passed in the
Parliament of India in May 1955. As a result, the State Bank of India (SBI) was established
on 1 July 1955. This resulted in making the State Bank of India more powerful, because as
much as a quarter of the resources of the Indian banking system were controlled directly by
the State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959. The
Act enabled the State Bank of India to make the eight former State-associated banks as its
subsidiaries. The State Bank of India emerged as a pacesetter, with its operations carried out
by the 480 offices comprising branches, sub offices and three Local Head Offices, inherited
from the Imperial Bank. Instead of serving as mere repositories of the community's savings
and lending to creditworthy parties, the State Bank of India catered to the needs of the
customers, by banking purposefully. The bank served the heterogeneous financial needs of
the planned economic development.

18
SINCE 07.10.2017

19
 Competition Overview

Chart Title

3500000
3000000
2500000
2000000
1500000
1000000
500000
0
-500000

Market Cap. (Rs. cr.) Net Interest Net Profit Total Assets
Income

Name Market Cap. Net Interest Net Profit Total Assets

(Rs. cr.) Income
SBI 263,186.09 220,499.31 -6,547.45 3,454,752.00
Bank of Baroda 38,703.90 43,648.54 -2,431.81 719,999.77
IDBI Bank 25,233.48 23,026.53 -8,237.92 350,313.65
PNB 22,056.98 47,995.76 -12,282.82 720,330.55
Central Bank 19,864.76 24,035.51 -5,104.91 326,225.28
Canara Bank 19,845.27 41,252.09 -4,222.24 616,886.10
Indian Bank 16,423.57 17,113.65 1,258.99 252,715.83
Bank of India 15,765.24 38,071.41 -6,043.71 609,574.82
Union Bank 9,973.77 32,748.00 -5,247.37 487,405.99
Vijaya Bank 7,961.82 12,589.84 727.02 177,632.05
IOB 7,629.60 17,915.21 -6,299.49 247,968.11
*Market condition as on 14 August 2018.

20
 Awards and Achievements

• Golden Peacock National Training Award: As a mark of outstanding performance in the

area of training to its employees ‘State Bank of India’ has been declared as the Winner of
‘Golden Peacock National Training Award’ for the year 2017 in the sector of financial
services (Banking).

• National Award 2016: Awarded for Empowerment of Persons with Different Abilities in
the sub-category Best Employer-2016 by Government of India, Ministry of Social Justice
and Empowerment.

• Helen Keller Award 2016: It was presented by National Centre for Promotion of
Employment for Disabled People (NCPEDP) for the second successive year in the category
Role Model Company/NGO/Institution for its commitment towards promoting equal
employment opportunities for Differently Abled Persons.

• ISO Certification:Your Bank constantly strives to achieve quality standards for its Learning
Centres in terms of training resources, infrastructure and academic activities. All the five
Apex Training Institutes (ATIs) and 40 SBLCs out of 43 are accredited with certification, of
which 13 SBLCs were accredited during FY2017.

• Year 2017-18

ET Now & World CSR Day Innovations in CSR practices

Awards

ET Now & World CSR Day Promoting Employment for the Disabled
Awards
Bureaucracy Today CSR Excellence
FICCI CSR Awards .CSR Excellence (Appreciation Plaque)

21
 State Bank of India Services
State Bank of India Services are most varied and innovative amongst all its contemporaries.
State Bank of India Services includes a host of products and services to suit all types of
consumers.

 Foreign Subsidiaries - State bank of India International (Mauritius) Ltd.,State Bank of India
(California), State Bank of India (Canada) and INMB Bank Ltd, Lagos.

 Non- banking Subsidiaries - SBI Capital Markets Ltd (SBICAP), SBI Funds Management
Pvt Ltd (SBI FUNDS), SBI DFHI Ltd (SBI DFHI), SBI Factors and Commercial Services
Pvt Ltd (SBI FACTORS) and SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

 Joint ventures - SBI Life Insurance Company Ltd (SBI LIFE).

Products & Services

 Personal Banking
 NRI Services
 Agriculture
 International
 Corporate
 SME
 Domestic Treasury

SBI Financial Summary

For the three months ended 30 June 2018, State Bank of India interest income increased 8%
to RS612.01B. Net interest income after loan loss provision decreased 57% to RS44.29B.
Net loss totaled RS42.3B vs. income of RS30.32B. Net interest income after loan loss
provision reflects Interest on Balances with Reserve Bank decrease of 71% to RS2.81B,
Others decrease of 9% to RS11.09B.

22
 SBI Income Statement
Gross margin TTM-
Operating margin TTM-14.23%
Net Profit margin TTM-7.12%
Return on Investment TTM-
Total Revenue Net Income

Period Ending: Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017

Total Revenue 749934.1 815753.8 741908.5 749485.2

Net Income -42304.4 -75420.3 -18865.7 18404.3

SBI Balance Sheet

Quick Ratio MRQ-
Current Ratio MRQ-
LT Debt to Equity MRQ119.55%
Total Debt to Equity MRQ119.55%
Total Assets Total Liabilities

Period Ending: Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017

Total Assets 35252143.5 36164330 34149132 33840153.5

Total Liabilities 32984085.7 33861110.5 31868526.2 31420456.3

Total Equity 2268057.8 2303219.5 2280605.8 2419697.2

SBI Cash Flow Statement

Revenue/Share TTM182.74
Operating Cash Flow -
Cash Net Change in Cash

23
CHAPTER 2
Literature Review

24
 Literature Review

Geomapping:

Geomapping is defined as a method of land and sub surface surveying using GPS that
presents a detailed view of a site and the surrounding area including roads, buildings,
mountains, rivers and pipelines. The ability to precisely locate sewer and water utilities is
essential in trenchless technology as it provides a useful representation of the site conditions
below and above ground before plans and designs are finalized, and equipment and
machinery is moved to location.

Technique to visualize data from different geo-cultural contexts or specific geographic

locations that takes into account the cultural characteristics of inhabitants, which
demonstrates the diffusion of the theory

Geographic Information Systems is a computer-based tool that analyzes, stores, manipulates

and visualizes geographic information, usually in a map.

GIS History

GIS stores information about the real world as thematic layers. Of course, these layers are all
linked by their geographic coordinates. As a result, we save cost because of greater
efficiency in record-keeping and can make powerful spatial analysis with ease.

Commonly found along one of when you look at an old map, it’s like you are traveling back
in time. A map not only shows geography, but paints a story of importance or struggle. In
1854, spatial analysis began when cholera hit the city of London, England. Because no one
knew how the disease started, British physician John Snow began mapping outbreak
locations. But he also located roads, property boundaries and water lines. When he added
these features to a map, something interesting happened. He noticed how Cholera cases were
the water lines.

25
 John Snow’s Cholera Map

It was a major event connecting geography and public health safety. Not only was this the
beginning of spatial analysis, it also marked the start epidemiology, the study of the spread of
disease. But it actually wasn’t until 1968 when GIS evolved into using computers: Roger
Tomlinson first coined the term “Geographic Information System” in his paper “A
Geographic Information System for Regional Planning”. At this point in time, GIS truly
became a computer-based tool for storing map data. In 2014, Roger Tomlinson later passed
away and will always be remembered as the “father of GIS”.

26
 Utilizing GIS for Investment Opportunities

Investing in firms and business opportunities are generally seen as activities where detailed
statistics and knowing the firm are traditionally seen as the best way to determine where
investors should put their money. However, spatial understanding can be a critical
component for understanding where and how investments may occur for given markets.

One method that can aid investors is utilizing past behavior or trends to predict where future
investments may occur.[1] This is similar to property investments, where patterns of previous
purchases help to inform where future ones likely will occur.[2] In fact, this research is
indicative of the nature of financial investments based on GIS results, where most work has
been done in areas where data easily lend themselves to spatial representation rather than
mapping more difficult concepts such as consumer demand, sentiment, or service-oriented
business that may not be easily mapped.

As might be expected, real estate has been the biggest focus of spatial analysis and where to
invest.[3]Attempts, however, have been made to expand the focus. A recent study looked at
mutual funds and their performance based on proximity of their headquarters with those
companies in which they invest in. The implication is companies that are far could be
potentially less known and possibly a more risky investment.[4]In the pharmaceutical
industry, patents appeared to have a spatial relationship, where firms cited or utilized patents
from nearby firms.[5] Overall, however, there is still a lot of room for growth in utilizing GIS
for investment opportunities and analysis.

27
 RAJASTHAN INDUSTRIALSCENERIO

RAJASTHAN: AN OVERVIEW:

Rajasthan, with a geographical area of 3.42 lakh sq.kms, is the largest State in the country. It
is situated in the north-western part of the country and surrounded by the states of Punjab,
Haryana and Uttar Pradesh in the north-east, Madhya Pradesh in the South-east and Gujarat
in the south-west. It also has a long international frontier with Pakistan. The topography of
the State is dominated by the Aravalli hills, one of the oldest mountain systems in the world.
The Aravalli hills range runs from south-west to north-east through the heart of the State.
The west and the north-west part of the State, is either desert or semi-desert and known as the
Great Indian Desert "The Thar". Administratively, the State has been divided into 7 divisions
and 33 districts, comprising 295 panchayatsamities, 9,891 village panchayats, and 43,264
inhabited villages.

STATE ECONOMY

The Gross State Domestic Product (GSDP) and Per Capita Income (PCI) reflect the overall
performance of economy of the State. GSDP generally known as 'State Income' is a key
measure to assess the economic performance of the state during a specific period of time and
it reveals the extent and direction of the changes in the levels of economic development. The
Per Capita Income is derived by dividing the Net State Domestic product by the mid year's
total population of the State. Per Capita income is a pointer for standard of living and well-
being of people

 As per advance estimates, the Gross State Domestic Product (GSDP) at current prices is
estimated to be `8,40,263 crore for the year 2017-18 as compared to `7,59,235 crore during
the year 2016-17, showing an increase of 10.67 per cent over the previous year.
 As per the advance estimates, the Gross State Domestic Product at constant (2011-12) prices
in the year 2017-18 is likely to attain a level of `6,41,940crore, as against the estimates of
GSDP for the year 2016-17 of `5,99,029 crore, registering an increase of 7.16 per cent over
the preceding year. The year-wise estimates of Gross State Domestic Product from the year
2011-12 at current prices and constant (2011-12) prices are given in table
Table: GSDP at Current and Constant (2011-12) Prices
Year Gross state domestic product (₹ in crore)
Current price Constant price(2011-12)
2011-12 434837 434837
2012-13 493551 454564
2013-14 551031 486230
2014-15 615695 521700

28
 2015-16 683758 558144
2016-17 759235 599029
2017-18 AE 840263 641940
BANKING & FINANCE

The state has an extensive network of banking and financial system. As on September, 2017,
there are total 6,957 bank offices/branches in the state, out of which 4,340 are Public Sector
banks (includes SBI and its associate banks), 1,498 of regional rural banks, 1,081 of private
sector banks, 6 of foreign banks and 32 of Small Finance banks.

The deposits have increased by 14.86 per cent in Rajasthan during September, 2017
over September, 2016, while at all India level deposits increased by 8.23 per cent during the
same period. The credit deposit ratio for all scheduled commercial banks is 68.64 per cent in
Rajasthan and 73.27 per cent at all India level as on September, 2017, whereas it was 70.61
per cent in Rajasthan and 74.46 per cent at all India level in September, 2016.

Industrial Scenario in Rajasthan:

Development of industries has the vast potential of providing substantial employment and
generating the income and improving the standard of living and over all well being of people.
In an agriculture dominated economy, like that of Rajasthan, industrial development is an
important intervention, for fostering fast economic development. Rajasthan's investor
friendly policies, peaceful environment, hospitable people, vast and unexplored natural
resources, world class medical and education facilities have made it one of the most preferred
destinations for national and international investors. To revive industrial growth in Rajasthan,
the state Government has created an institutional mechanism for attracting investment,
various departments/ corporations /agencies are functional in the state to promote industrial
development and for facilitating establishment and expansion of small, medium and large
scale industries and meeting their various requirements, either directly or by discharging the
responsibility as the strong facilitators.

INDUSTRIES:-

 At present, 36 District Industries Centres and 8 sub-centres are working in the state for
providing inputs and other facilities to the entrepreneurs
 Under the New Single Window Clearance System, from 1 June, 2016 to 31 December, 2017,
total 5,489 applications have been received for approvals/ clearances. Out of these, 3,791
applications have been granted clearances/ approvals.

29
 RIICO is an apex organization engaged in fostering the growth of industrialization in the
State. During the financial year 2017-18 (upto December 2017), RIICO has sanctioned term
loan of `50.65 crore, term loan disbursement of `29.37 crore, and recovered loan of `153.16
crore.

30
 CHAPTER 3:
Research Methodology

31
 Research Methodology

Objective of the Study

The project assigned to me is mainly scanning geographical areas region/module wise and
preparing a comprehensive dossier on all institutions- government organization and
autonomous bodies in that area with specific reference to their nature of activity, staff
strength with their present bankers. And to analyze the geographical area so that the SBI will
know about the potential business of that particular area which will help to grow SBI’s
business. So the nature of the project is to :

 Demographic scanning of the area and finding potential business for SBI
 SBI possible offering to the autonomous bodies

Scope of Study

State Bank of India is one of the most famous banks in India. This study is based on scanning
the rajasthan industrial area and helping SBI to find its potential business investment. This
will help the organization to introduce services to these industries to expand its business
horizons.

32
 Type of Research

Research is one of the most important parts of any study and pertains to the collection of
information and knowledge. Marketing research is defined as the systematic design,
collection, analysis, and reporting of data and findings relevant to a specific marketing
situation facing the company. The research process depends upon developing the most
efficient plan for gathering the needed information. Designing a research plan calls for
decisions on the data sources, research approaches, research instruments, sampling plan, and
contact methods. My project has been developed on has basis of both exploratory and
descriptive research.

The research is descriptive as the study has been completed based on the data collected from
the internet and secondary sources like news, magazines, database SBI, reports etc.

33
 Data Source
For this project both primary and secondary data were valuable sources of information.

 Primary data
Primary data are data freshly gathered for a specific purpose. For my project work, the study has
been done using an exploratory research process and a structured questionnaire was developed for
this purpose. For the collection of primary data this was the only method used. The filled up
information was later analyzed to obtain the required interpretation and the findings. The reason I
used this method is because a need was felt for the free influx of information about the products.

 Secondary data
Secondary data provides a starting point for any research and offers valuable sources of already
existing information. Secondary data are the easiest to gather and the cost of collecting this data is
also very low. For my project work, study of the banking industry, State bank of India was done
using secondary data sources. This secondary information has been sourced from the internet and
from business related magazines and newspapers.

34
 DATA ANALYSIS AND INTERPRETATION

Q. Type of account in the existing bank?

The main objective of Current Account holders in opening these account is to enable
organizations to conduct their business transactions smoothly. There are no restrictions on
the number of times deposit in cash / cheque can be made or the amount of such deposits.
Overdraft is a significantly useful service provided by the banks as it offers great aid to
businesses in terms of cash flow. Businesses often have to wait for the payments from their
clients and this results in delayed payments from their side as well. With the support of
overdraft in their current accounts, businesses can sign cheques for their clients beyond the
available funds in their account. This prevents cheque dishonour and maintains the
reputations of the business as well.

Types of Account
S.B C.A C.C O.D.

11%
23%

12%

54%

35
Q. Facilities currently being availed from bank?

A bank’s job is to provide customers with financial services that help people better manage
their lives. As technology advances and competition increases, banks are offering different
types of services to stay current and attract customers. Mostly availed facility by
organizations is online banking which give them facility to Electronic bill presentment and
payment, Funds transfer,
Investment purchase or sale, Loan applications and transactions, such as repayments of
enrollments and debit credit card facility is also being used by the organizations. Merchant
services are also availed by the organization, this involve obtaining sales information from
the merchant, receiving authorization for the transaction, collecting funds from the bank
which issued the credit card, and sending payment to the merchant.

4.5

3.5

2.5

1.5

0.5

0
credit cards ONLINE, Mobile Merchant services Business loans others
and Tablet
BANKING

36
Q. Have you diversified your assets in different banks?

Most of the organizations have diversified their assets in different banks. They have
diversified their assets cause; diversification is an effective way to reduce risk. If you hold
just 1 investment and it performs badly, you could lose all of your money. If you hold a
diversified portfolio with a variety of different investments, it’s much less likely that all of
your investments will perform badly at the same time. The profits you earn on the
investments that perform well offset the losses on those that perform poorly.

Diversification
yes no

31%

69%

37
Q. What is the reason for choosing the existing bank as your major bank?

Organizations main reason to choose the existing bank is quality of product and services the
banks are providing, along with quality they were also concerned about the location of their
bank they want their bank near to their organization or their house so that when needed they
can easily visit their bank. Some organization like to follow their family tradtion even though
they are not getting much facilities in their bank. And other reason like additional facility
some other banks provide to their customers, to avail these facilities they opt for their banks.

Reasons

4.5

3.5

2.5

1.5

0.5

0
Family Tradition Quality of Nearness to the Just by chance others
Product and office/ Residence
Services offered

38
Q. Are you satisfied with the existing banker?

Most of the organizations are satisfied with their banks facility. But some
organizations faced some problems while availing some facility of their bank which
involves not proper functioning of their online facilities, waiting for long time for just
withdrawal of cash, officers not being able to solve their problems and such problems.
Which make their customer unsatisfied with their existing banks facility.

Satisfaction

No
28%

Yes
72%

39
 Limitations of Study

 Mostly organization didn’t co-operated even after having the formal permission letter to visit these
industries.
 The sample area and sample size has been limited due to time constraint.
 In a rapidly changing industry, analysis of one month or in one segment can change very quickly.
The environmental changes are vital to be considered in order to assimilate the findings.
 Respondents may give biased answers for the required data. Some of the respondents did not like to
respond.
 The conclusion arrived at are based on a very less experience of researcher in this field.
 In our study we have included 100 customers of bank because of time limit.
 The study can also not be generalized for public and private sector banks of the country.

40
 Secondary Data
This includes scanning the geographical area of Rajasthan and then finding potential investment in
any industry. They are following:

Dairy Industry in Rajasthan

Currently, liquid milk represents the biggest product segment in Rajasthan, accounting for more than
53% of the total market share. Some of the fastest growing segments include frozen/flavoured
yogurt, cheese, UHT milk, flavoured milk and butter milk. The competitive landscape of Rajasthan’s
dairy market has also been examined in the reports. Some of the major players covered in the report
include Saras, Amul, Lotus and Paayas. The state currently represents the sixth largest dairy market
in India. The milk production in Rajasthan mainly consists of cow and buffalo milk.
A new concept has also been introduced in milk industry which is a transforming movement for
India from a milk-deficient nation to the world’s largest milk producer, which is premium milk. It is
fresh, unadulterated and uncontaminated milk delivered within 8-12 hours of milking. Alwar based
teacher turned entreprenure started this movement and also made public aware about such facility .
This increase the demand of milk and milk industry will grow. So this is how dairy industry is one of
the potential business to invest in Rajasthan.

41
 Tourism of Rajasthan

Tourism makes a large contribution to the economy of Rajasthan in India. Recent hike in the figures
of tourists to Rajasthan in India has proved that tourism is a vital source of income for the state of
Rajasthan. One may not forget that many heritage hotels (old forts and palaces) all over Rajasthan
are being run successfully for handsome amount of money and the considerable amount of tax being
paid to the state government support the local economy and people of Rajasthan which would have
not been possible without the tourists visiting to Rajasthan. A recent study showed that from every
single tourist. Start up like “ToRoots” are emerging which aim to enable people to shed the shackles
of mainstream tourism and experience travel through culture and tradition.

42
 Mining in Rajasthan

Rajasthan is pre-eminent in quarrying and mining in India. Rajasthan is a mineral rich state
with rich deposits of zinc concentrates, emerald, garnet, gypsum, silver ore and mica.
Rajasthan is also abounds in salt and red sandstone deposits. The first Export Promotion
Industrial park of the country has been established and made operational at Sitapur. There is
a Zinc smelter plant at Devari (Udaipur), copper plant at Khetri Nagar (Jhunjhunu) and a
precision instrument factory at Kota providing employment to many. The state is the second
largest source of cement. It has rich salt deposits at Sambhar, copper mines at Khetri and zinc
mines at Dariba, Zawar mines at Zawarmala for zinc, rampura aghucha (opencast) near
Bhilwara. Dimensional stone mining is also undertaken in Rajasthan: Jodhpur sandstone in
Rajasthan is mostly used in monuments, important buildings, residential buildings, etc. This
stone is termed "chittar patthar" in Rajasthan.

43
 Rajasthan Agriculture

Rajasthan is a state where 80% of the people depend on agriculture. The rural economy of
Rajasthan are largely depends on farming. The total cultivable area in the state is 257 lakh
hectares. The estimated food grain production of Rajasthan is 173 lakh tones. Wheat and
barley are cultivated over large areas, as are pulses, sugarcane, and oilseeds. Cotton and
tobacco are cash crops in Rajasthan. Rajasthan is among the largest producers of edible oils
in India and the second largest producer of oilseeds. Rajasthan is also the biggest wool-
producing state in India.

44
 Rajasthani crafts

Rajasthan is the largest producer of handicraft items in India. The art and craft of Rajasthan
is known around the world. Tourists visiting India always desire to take back souvenirs of
Rajasthani handicrafts. Many bright colored and patterned crafts of the state are used to
adorn household as interior decoration. Whereas there are other crafts that produces utility
products of daily use, garments, accessories and miscellaneous items.Amongst the variety of
Rajasthani handicraft and handlooms, includes, Jewellery - silver, kundan and meenakari,
Textile, Handmade Paper, Precious and Semi-Precious Stones -gemstone, Paintings, Leather
craft, Marble Handicrafts, hand crafted items - wood, ivory, lac, glass, brass, silver and gold
and much more.

45
 Wildlife in Rajasthan

Rajasthan is immensely rich in wildlife.Bharatpur Bird sanctuary (Keoladeo National Park)

and Ranthambore Tiger Reserve of Rajasthan are among the best and most popular in the
world. Desert National Park and Sariska Tiger Reserve are two other important among the
many others wilderness areas in Rajasthan.It must be added that this is merely a sketch of the
prominent biodiversity of Rajasthan the water lily and lotus, looper caterpillar and dung
beetle, viper and cobra to name a few of the good variety, they all part of the rich natural
heritage of Rajasthan.

46
 SBI SWOT Analysis

1. SBI is the biggest bank in India with more than 14000 branches
2. State Bank Of India (SBI) has a separate act for itself. Thus, a special privilege for
the bank
3. Biggest branch network in the country means good reach
4. First public sector to move to CBS

5. SBI has close to 300,000 people employed with it

6. Backing of the Govt of India gives a huge boost to the bank

7. State Bank Of India offers services like consumer banking, enterprise banking,
insurance etc

8. It has a good brand visibility and awareness due to extensive marketing

Strengths 9. SBI has its presence in more than 35 countries with close to 200 offices

1. Immense competition means limited market share growth for SBI

Weaknesses 2. International presence is less as compared to global banks

1. Pool in talent to replace the going top management to serve the next generation
2. State Bank Of India (SBI) can make better use of CRM, technology and online
space
3. Expansion into rural areas too boost its business

4. With focus on India going cashless, the bank can dominate the market with its
Opportunities extensive reach

1. Consolidation among private banks can reduce market share for SBI
2. New bank licenses by RBI can affect operations
3. Foreign banks that have sophisticated products

Threats 4. SBI operations are often disrupted by slow government decisions and red tapism

47
 Facts and Findings

 It was found from the study that bank believes in quality service rather than quantity of service.
 State Bank of India is having a distribution network of more than 4500 branches. This is the main
strength of the State Bank of India.
 State Bank of India has a strong brand image in the market built over the time & a huge stockpile of
the customers under its arms.
 The bank and its customers have a long term relationship. State Bank of India has the tendency to
retain its customers at any cost. They believe that the old customer is more profitable instead of a
new one that’s why they try to maintain good and long term relations to their customers.
 The perception of the majority of the customer regarding the bank is good because majority of the
customers are satisfied with the bank and they also recommend the products of the bank.
 The reason for high satisfaction rate was that on the standing instructions of the customers, bank
could pay bills such as telephone bills, light bills etc. with the required minimum or low cost.
 According to the customer perception, State Bank of India is highly responsive. Customers are
assured while transacting with the bank.
 Majority of the customers are aware of services and extra services offered by State Bank of India.
But they are not aware about all the services.
 The officials employed are very much enthusiastic about their job.
 The officials try to make best relation with the customers.
 The registers and files are maintained on a daily basis and in a well organized manner.
 The marketing strategy of the bank is very attractive and it tries to attract customers with innovative
offers.

48
 Recommendations and Suggestions

 The bank has a wide customer base, so the bank should concentrate on this to retain its customers.
 The majority of customers are satisfied. But the bank should target on the rest of the customers who
are not satisfied.
 The customers are aware about the bank’s services but the Bank should try to create more awareness
among people. Bank of Baroda should lay more stress on
advertisements, both in print as well as in other media for this purpose.
 Number of formalities should reduce, as customer feels irritated with lots of formalities and it will
save the time of customer and Bank also.
 It is the duty of the bank to disclose all the material facts regarding products, like interest charged,
repayment period, other types of charges, etc.
 The bank should enhance their services according to the needs of the customer.
 Mostly business class persons prefer the Bank of Baroda in comparison of professionals and students
and other class persons thus it needs to promote its product and services that are offered mainly for
the service class people and students. Because these class are major users of the banking services.
 Customers of the bank want to know their resources are safe and within trustworthy institutions. A
way to ensure this peace of mind would be to take steps to ensure bank employees are well trained,
so each bank associate is able to offer complete and comprehensive information at all times.
Consistent policies combined with a knowledgeable staff will foster a high degree of institutional
cohesion and reliability.
 Learning to understand customer’s needs will allow bank associates to offer enhanced services,
perhaps lowering customers banking costs and increasing their investment potential. This could also
open up the possibility of increased profits for banks.
 Staff should be encouraged to present relevant options to banking customers in a manner that does
not resemble salesmanship so much as a desire to serve.
 Keeping the bank with up-to-date technologically is an important factor. Modern equipments, new
improved technology should be replaced with the old ones. If the staff inside is pleasant and well-
informed, in an aesthetically pleasing environment, then customer satisfaction will be high.
 Thus, the banking industries must continuously measure and improve their services in order to gain
customers loyalty.

49
 CHAPTER 6
Appendix & Bibliography

50
 Research questionnaire

I hereby declare that the data collected is solely towards the purpose of completion of my project and will be
kept highly confidential.

Demographic profiling
Q.1 Name of the organization
____________________________________________________________
Q.2 Area/taluk of the branch
________________________________________________
Q.3 Number of employees in the organisation ___________
Q.4 Plans for employment next year

☐retain all the employees ☐ employ new workers ☐ lay off employees ☐others

Nature of organization
Q.5 Ownership form of the organisation
________________________________________________
Q.6 Nature of activity
________________________________________________
Q.7 Increase in revenue for the year 2017-18 compared to previous year in % __________________

Current banking details

Q.8 Is your current major bank SBI? (if not, please specify the existing major bank)

☐yes ☐no
_____________________
Q.9 Type of account in the existing bank? (SB,CA,CC,OD,etc)
________________________________
Q.10 Have you diversified your assets in different banks?

☐yes ☐no

Q.11 What are the services that your organization avail most from your existing bank?
_______________________________________________________________________________
Q.12 How many times do you visit your bank in one month on an average?
_____________________

51
Current banking services/products
Q.13 Tick mark the facilities currently being availed from bank

☐credit cards ☐business loans ☐cash management(payroll services, deposit

services)

☐Online, mobile, and tablet banking ☐ insurance ☐ savings a/c ☐ salary a/c

52
☐Transaction a/c
☐Merchant services (credit card processing, reconciliation and reporting)
☐Other digital banking products ☐others (please specify)
________________________

Gaps in current banking relationship

Q.16 What is the reason for choosing the existing bank as your major bank?

☐family tradition ☐quality of products/services offered

☐nearness to office/residence ☐just by chance

☐others (specify)______________________________________________________

Q.17 Are you satisfied with the existing banker?(if not, please specify the reason)

☐yes ☐no
____________________________________________________
Q.18 For this question, rank your current bank on a scale of 1-5 in terms of the criteria
specified.

1-extremely 2-good 3-neutral 4-bad 5-extremely

good bad
Security and
privacy
Commissions
And fees
Wide spectrum
of services
Acceptable
interest rate
charged on
loan/product
Promptness in
solving
requests
Online banking
and other
technological
aspects
Fast and
efficient

53 | P a g e
delivery of
services
Convenient
location of
branches &
ATMs
Satisfaction
level

Q.19 What do you expect from SBI apart from the products/services already availing?

Q.20 Name, Contact number and signature

______________________________________________________________________________
________

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 Bibliography

Websites
 www.sbi.co.in
 www.moneycontrol.com
 www.nseindia.com
 www.indianbusiness.nic.in

Magazine

 BUSINESS INDIA
 BUSINESS TODAY

Newspaper
 DNA
 Economic times
 Business world
 Hindustan times

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