Acknowledgement

It is my proud privilege to release the feelings of my gratitude to several persons

who helped me directly or indirectly to conduct this project work. I express my heart full
indebtness and owe a deep sense of gratitude to my teacher and my faculty guide
Prof.Pattnaik,

Professor,

Vishwavishwani

institute

of

systems

and

management,

Hyderabad, for his sincere guidance and inspiration in completing this project.

I am extremely thankful to the Dean, and faculties of the Vishwavishwani

institute of systems and management for their coordination and cooperation.

I am also extremely thankful to all those persons who have positively helped me
and customers who responded my questionnaire, around whom the whole project cycle
revolves.

I also thank all my friends who have more or less contributed to the preparation
of this project report. I will be always indebted to them.

Thanking You

INDEX
S.NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

CONTENT
Chapter-1:Industry profile
Chapter-2:Company Profile
Overview
History
Competitors
SWOT analysis
Different Products
Awards & Recognitions by SBI
Chapter 3
Introduction to Advance Product
SBI Advance Product
Research objectives
Significance and scope
Chapter 4
Research methodology
Chapter 5
Data Analysis
Chapter 6
Findings
Suggestion & Recommendation
Conclusion
Annexure (Questionnaire)
Bibliography

PG.NO
01
15
16
18
19
23
24
25
27
28
28
36
37
38
39
41
42
49
50
51
52
54
56

CHAPTER-1
INDUSTRY PROFILE

Executive Summary
In the growing global competition, the productivity of any business concern depends upon
the behavioral aspect of consumers. This topic deals with the customers perception
towards other Advance Product from SBI credit cards at Hyderabad. This project report
contains 6 different chapters. The report begins with the industry profile and introduction to
company, its area of operation, its organization structure, its achievements, etc.
The third chapter is the introduction to the Advance Product which gives a brief idea
regarding ADVANCE PRODUCT of SBI MAIN BRANCH, where the project is undertaken. It
also contains the objectives and limitations of the project.
The fourth chapter, methodology adopted in preparing this report is mentioned. It covers
the sample procedure, types of data used and the data collection method.
The fifth chapter comprehensive coverage of forecasting concepts and techniques which
shows the analysis of data through tabulation, computation and graphical representation
of data collected from survey.
The sixth chapter deals with the findings, suggestion & conclusion part which is very much
important after analysis is made.
As we know that only analysis and conclusion is not the end of a research, so in the sixth
chapter the recommendation part is covered which are made after a depth study of the
analysis part of thesis.
In each of the six chapters as described above, every chapter has been scheduled in a
manner so as to enable the reader to appreciate the contents easily. The report is
supported by figures and data wherever necessary with a view to assist the reader in
developing a clear cut understanding of the topic.
I hope this report will be extremely useful for those it is meant. Constructive and healthy
suggestions for improvements of the report will be great fully appreciated.

Introduction:The Banking industry comprises of segments that provide financial assistance and advisory
services to its customers by means of varied functions such as commercial banking,
wholesale banking, personal banking, internet banking, mobile banking, credit unions,
investment banking and the like.
With years, banks are also adding services to their customers. The Indian banking industry
is passing through a phase of customers market. The customers have more choices in
choosing their banks. A competition has been established within the banks operating in
India.
With stiff competition and advancement of technology, the services provided by banks have
become more easy and convenient. The past days are witness to an hour wait before
withdrawing cash from accounts or a cheque from north of the country being cleared in one
month in the south.
Banks are among the main participants of the financial system in India. Banking offers
several facilities & Opportunities. This section provides comprehensive and updated
information, guidance and assistance in all areas of banking in India.
Bank of Hindustan, set up in 1870, was the earliest Indian Bank . Banking in India on
modern lines started with the establishment of three presidency banks under Presidency
Bank's act 1876 i.e. Bank of Calcutta, Bank of Bombay and Bank of Madras.
The commercial banking structure in India consists of: Scheduled Commercial Banks &
Unscheduled Banks. Banking Regulation Act of India, 1949 defines Banking as "accepting,
for the purpose of lending or investment of deposits of money from the public, repayable on
demand or otherwise and withdrawable by cheques, draft, order or otherwise."
The arrival of foreign and private banks with their superior state-of-the-art technology-based
services pushed Indian Banks also to follow suit by going in for the latest technologies so
as to meet the threat of competition and retain customer base.
The evolution of IT services outsourcing in the Indian banks has presently moved on to the
level of Facilities Management (FM). Banks now looking at business process management
(BPM) to increase returns on investment, improve customer relationship management
(CRM) and employee productivity.
For, these entities sustaining long-term customer relationship management (CRM) has
become a challenge with almost everyone in the market with similar products.
Industry Segments:
Public Sector Banks:Almost 80% of the business is still controlled by Public Sector Banks (PSBs). PSBs
are still dominating the commercial banking system. Shares of the leading PSBs are
already listed on the stock exchanges.
The PSBs will play an important role in the industry due to its number of branches and
foreign banks facing the constraint of limited number of branches. Hence, in order to
achieve an efficient banking system, the onus is on the Government to encourage the PSBs
to be run on professional lines.

Private Sector Banks:The RBI has given licenses to new private sector banks as part of the liberalization
process. The RBI has also been granting licenses to industrial houses. Many banks are
successfully running in the retail and consumer segments but are yet to deliver services to
industrial finance, retail trade, small business and agricultural finance.
Foreign banks:Foreign banks have been operating in India for decades with a few of them having
operations in India for over a century. The number of foreign bank branches in India has
increased significantly in recent years since RBI issued a number of licenses - well beyond
the commitments made to the World Trade Organization. The presence of foreign banks in
India has benefited the financial system by enhancing competition, resulting in higher
efficiency. There has also been transfer of technology and specialized skills which has had
some "demonstration effect" as Indian banks too have upgraded their skills, improved their
scale of operations and diversified into other activities. At a time when access to foreign
currency funds was a constraint for the Indian companies, the presence of foreign banks in
India enabled large Indian companies to access foreign currency resources from the
overseas branches of these banks. Also with the presence of foreign banks, as borrowers
in the money market and their operation in the foreign exchange market has resulted in the
creation and deepening of the inter-bank money market. Now, it is the challenge for the
supervisors to maximize the advantages and minimize the disadvantages of the foreign
banks' local presence.
History of Banking in India:Banking in India originated in the last decades of the 18th century. The first banks
were The General Bank of India, which started in 1786, and Bank of Hindustan, which
started in 1790; both are now defunct. The oldest bank in existence in India is the State
Bank of India, which originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal. This was one of the three presidency banks, the
other two being the Bank of Bombay and the Bank of Madras, all three of which were
established under charters from the British East India Company. For many years the
Presidency banks acted as quasi-central banks, as did their successors. The three banks
merged in 1921 to form the Imperial Bank of India, which, upon India's independence,
became the State Bank of India in 1955.
Types of bank:There are various types of banks which operate in our country to meet the financial
requirements of different categories of people engaged in agriculture, business, profession,
etc. On the basis of Functions, the banking institutions in India may be divided into the
following types:
Central bank:A central bank, reserve bank, or monetary authority is a public institution that manages the
nation's currency, money supply, and interest rates. Central banks also usually oversee the
commercial banking system of their respective countries. In contrast to a commercial bank,
6

a central bank possesses a monopoly on increasing the nation's monetary base, and
usually also prints the national currency, which usually serves as the nation's legal tender.
Examples include the European Central Bank (ECB), the Federal Reserve of the United
States, and the People's Bank of China.
The primary function of a central bank is to manage the nation's money supply (monetary
policy), through active duties such as managing interest rates, setting the reserve
requirement, and acting as a lender of last resort to the banking sector during times of bank
insolvency or financial crisis. Central banks usually also have supervisory powers, intended
to prevent commercial banks and other financial institutions from reckless or fraudulent
behavior. Central banks in most developed nations are institutionally designed to be
independent from political interference.
Commercial Banks:Commercial Banks are banking institutions that accept deposits and grant short-term
loans and Advances to their customers. In addition to giving short-term loans, commercial
banks also give Medium-term and long-term loan to business enterprises. Now-a-days
some of the commercial Banks are also providing housing loan on a long-term basis to
individuals. There are also many other functions of commercial banks, which are discussed
later in this lesson.
Types of Commercial banks: Commercial banks are of three types i.e., Public sector banks,
Private sector banks and foreign banks.
(i) Public Sector Banks: These are banks where majority stake is held by the Government
of India or Reserve Bank of India. Examples of public sector banks are: State Bank of India,
Nationalized banks:Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank
7

Indian Overseas Bank

Oriental Bank of Commerce
Punjab & Sind Bank
Punjab National Bank
State Bank of India
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
Syndicate Bank
UCO Bank
Union Bank of India
United Bank of India
Vijaya Bank
Their public sector banks
IDBI Bank
Dhanlaxmi Bank
Jammu & Kashmir Bank
Nainital Bank
Lakshmi Vilas Bank
South Indian Bank

(ii) Private Sectors Banks:In case of private sector banks majority of share capital of the Bank is held by private
individuals. These banks are registered as companies with limited Liability. For example:
The Jammu and Kashmir Bank Ltd., Bank of Rajasthan Ltd., Development Credit Bank Ltd,
Lord Krishna Bank Ltd., Bharat Overseas Bank Ltd.,Global Trust Bank, Vysya Bank, etc.
1. Bank of Punjab Ltd. (since merged with Centurian Bank)
2. Centurian Bank of Punjab (since merged with HDFC Bank)
3. Development Credit Bank Ltd.
4. HDFC Bank Ltd.
5. ICICI Bank Ltd.
6. IndusInd Bank Ltd.
8

7. Kotak Mahindra Bank Ltd.

8. Axis Bank (earlier UTI Bank)
9. Yes Bank Ltd.

(iii) Foreign Banks:These banks are registered and have their headquarters in a foreign country but
operate their branches in our country. Some of the foreign banks operating in our country
are Hong Kong and Shanghai Banking Corporation (HSBC), Citibank, American Express
Bank, Standard & Chartered Bank, Grindlays Bank, etc. The number of foreign banks
operating in our country has increased since the financial sector reforms of 1991.
Foreign banks operating in India
ABN AMRO Bank N.V. (Now merged with RBS)
Abu Dhabi Commercial Bank
American Express Bank
Bank Internasional Indonesia
Bank of America NA
Bank of Ceylon
Bank of Nova Scotia (Scotia Bank)
Bank of Tokyo Mitsubishi UFJ
Barclays Bank PLC
BNP Paribas
Calyon Bank
Chinatrust Commercial Bank
Citibank N.A.
DBS Bank
Deutsche Bank AG
HSBC
JPMorgan Chase Bank
Krung Thai Bank
Mashreq Bank psc
Mizuho Corporate Bank
Royal Bank of Scotland
Shinhan Bank
SCOTIA BANK
Socit Gnrale
Sonali Bank
Standard Chartered Bank
State Bank of Mauritius
UBS
VTB
Co-operative Banks
People who come together to jointly serve their common interest often form a cooperative Society under the Co-operative Societies Act. When a co-operative society
engages itself in banking business it is called a Co-operative Bank. The society has to
obtain a license from the Reserve Bank of India before starting banking business. Any co9

operative bank as a society is to function under the overall supervision of the Registrar, Cooperative Societies of the State. As regards banking business, the society must follow the
guidelines set and issued by the Reserve Bank of India.
Types of Co-operative Banks:
There are three types of co-operative banks operating in our country. They are primary
credit societies, central co-operative banks and state co-operative banks. These banks are
organized at three levels, village or town level, district level and state level.

(i) Primary Credit Societies: These are formed at the village or town level with borrower
and non-borrower members residing in one locality. The operations of each society are
restricted to a small area so that the members know each other and are able to watch over
the activities of all members to prevent frauds.
(ii) Central Co-operative Banks: These banks operate at the district level having some of
the primary credit societies belonging to the same district as their members. These banks
provide loans to their members (i.e., primary credit societies) and function as a link between
the primary credit societies and state co-operative banks.
(iii) State Co-operative Banks: These are the apex (highest level) co-operative banks in all
The states of the country. They mobilize funds and help in its proper channelization among
Various sectors. The money reaches the individual borrowers from the state co-operative
Banks through the central co-operative banks and the primary credit societies
Monetary policy:
Monetary policy is the process by which the monetary authority of a country controls
the supply of money, often targeting a rate of interest for the purpose of promoting
economic growth and stability. The official goals usually include relatively stable prices and
low unemployment. Monetary theory provides insight into how to craft optimal monetary
policy. It is referred to as either being expansionary or contractionary, where an
expansionary policy increases the total supply of money in the economy more rapidly than
usual, and contractionary policy expands the money supply more slowly than usual or even
shrinks it. Expansionary policy is traditionally used to try to combat unemployment in a
recession by lowering interest rates in the hope that easy credit will entice businesses into
expanding. Contractionary policy is intended to slow inflation in hopes of avoiding the
resulting distortions and deterioration of asset values.

10

Monetary policy differs from fiscal policy, which refers to taxation, government spending,
and associated borrowing
Aims of Monetary policy

MP is a part of general economic policy of the govt.

Thus MP contributes to the achievement of the goals of economic policy.

Objective of MP may be:

Full employment

Stable exchange rate

Healthy Bop

Economic growth

Reasonable Price Stability

Greater equality in distribution of income & wealth

Financial stability

Instruments
1. Discount Rate
(Bank Rate)
2.Reserve Ratios

3. Open Market
Operations

Operation of Monetary
Policy
Operating
Target
Monetary Base
Bank Credit
Interest Rates

Intermediate
Target
Monetary
Aggregates(M3)
Long term
interest rates

Ultimate
Goals
Total Spending
Price Stability
Etc.

11

Instruments of the Monetary Policy

The instruments at the disposal of the RBI for managing money supply, interest rates
and exchange rates are:

Cash Reserve Ratio

Statutory Liquidity ratio

Open Market Operations

Managing Credit Expansion

Repo Rate

Bank rate

Rates paid on government securities

Tweaking the basket of currencies against which rupee rate is determined

Market Intervention

Multiple rates of interest

Cash Reserve Ratio:

Banks reserve liquidity through their power to create credit. Presently in India, banks
are required to maintain the following reserves:
o

Cash Reserve ratio: 8.25% of demand and time deposits (w.e.f. 24.05.2008)

Statutory Liquidity ratio: 25% of demand and time deposits

Just as additional cash inflows enable the banking system to create credit, any increase in
CRR will require the banking system to contract credit by a large amount.
Statutory Liquidity ratio
SLR (Statutory Liquidity ratio) is a requirement peculiar to India. In addition to
ensuring that banks can fall back on the readily saleable government deposits in the event
of a run on the bank, it was a prescription to divert bank deposits to meet government
investment expenditure.

12

Open Market Operations:

Banks as well as other financial institutions, such as insurance companies,
mutual funds and corporate with surplus cash are big investors in government securities.
When RBI wishes to inject liquidity into the market, it has another option of buying
government securities. When RBI offers to buy the securities at a rate that is better than the
rate prevailing in the market, some of the investors can sell their holdings and the cash
inflow would lead to credit creation of a large magnitude.
Similarly, when RBI sells government securities at a higher rate than market rate, RBI
absorbs funds and the banking system contracts credit by a large magnitude to reduce
liquidity. This is known as open market operation.
Managing Credit Expansion:
CRR and OMO reduce liquidity in the system and reduce the ability of banks to
create credit. RBI also controls sector specific expansion of credit by specifying maximum
amounts that can be lent, minimum margins to be maintained and higher risk weights.
When RBI feels that banks have overextended themselves to certain sectors, the flow of
credit to certain sectors is leading to an imbalanced growth of the economy or it wants to
control the price of certain commodities by preventing hoarding by wholesalers with
borrowed funds, RBI makes sector specific or commodity specific interventions.
Repo rate:
Repo rate or repurchase rate is a swap deal involving the immediate sale of securities
and simultaneous purchase of those securities at a future date, at a designated price. It
could also be an overnight deal with sale taking place on day one and repurchase on day
two. The repurchase price is adjusted for the interest payable for the use of funds for the
period of contract. Reverse repo involves the immediate purchase and future sale of those
same securities. RBI uses repo and reverse repo to control liquidity on a day-to-day basis.

13

Bank rate:
RBI provides refinance to banks against funds deployed by banks in specified
sectors such as export finance portfolio of the banks. In the past, the bank rate used to be
the primary interest rate tool of RBI. But over a period of time the repo rate has presently
emerged as the primary interest rate tool and bank rate has lost much of its relevance.
Changes in the bank rate are a signal to the market regarding the direction in which the RBI
would like interest rates to move.
Rates paid on government securities:
RBI, as a banker to the government, helps government to borrow from the market by
selling their securities. RBI also determines the timing, size, and rate paid on the issues.
Rates offered by RBI on government securities are both a reflection of the market and also
an indicator to the market on the direction of interest rate movements.
Tweaking the basket of currencies:
The exchange rate of rupee is calculated by RBI based on the exchange rates of
basket of currencies of countries with which India has significant trade transactions. RBI
maintains confidentiality about the weight age given to each currency in the basket and
when RBI wishes to manage the extent of volatility in the exchange rate of rupee, RBI
adjusts the weight ages properly.
Market intervention:
Large balance of payment surpluses and buildup of Forex reserves are bound to
strengthen the rupee in the exchange market. This market force cannot be counted by RBI
for long periods of time. However, by intervening in the market by offering to buy any
amount of foreign currency at a particular rate, RBI can prevent the sudden strengthening
of rupee. RBI seeks to smoothen the movement of rates in either direction so than
importers and exporters have time to adjust to the changing exchange rate scenario and
are not caught by surprise by violent rate movements, which could cripple them.

14

Multiple rates of interest

Under RBI fixes the credit quotas for various commercial bank.& commercial bank
borrows funds from RBI within their quotas they are charges interest at bank rates. But if it
is borrowed more than quotas then they are charged higher interest rates i.e. more than
bank rates.
Role of Banks in Indian Economy:In India, as in many developing countries, the commercial banking sector
has been the dominant element in the countrys financial system. The sector has performed
the key functions of providing liquidity and payment services to the real sector and has
accounted for the Bulk of the financial intermediation process. Besides institutionalizing
savings, the banking sector has contributed to the process of economic development by
serving as a major source of credit to households, government, and business and to
weaker sectors of the economy like village and small scale industries and agriculture. Over
the years, over 30-40% of gross household savings, have been in the form of bank deposits
and around 60% of the assets of all financial institutions accounted for by commercial
banks. An important landmark in the development of banking sector in recent years has
been the initiation if reforms following the recommendations of the first Narasimham
Committee on Financial System. In reviewing the strengths and weaknesses of these
banks, the Committee suggested several measures to transform the Indian banking sector
from a highly regulated to amore market oriented system and to enable it to compete
effectively in an increasingly globalized environment. Many of the recommendations of the
Committee especially those pertaining to Interest rate, an institution of prudential regulation
and transparent accounting norms were in line with banking policy reforms implemented by
a host of developing countries since 1970s.
Growth of bank in India.
Market Overview:
The banking industry too has evolved rapidly over the last few years in India due to the
availability of cheaper technology and falling communication costs. De-regulation,
competition from non-financial players, new compliance requirements, and changing
customer expectations has added complexity and challenges to banking systems and
processes.
Banks, however, face an uphill task in reaching out to the customers in remote locations
such as villages. There is a lower level of literacy and access to Internet. Setting up
branches involves higher cost and operating expenses, and lower return on investment.
Given the 742-million rural population, the penetration of deposit accounts languishes at a
deplorable 18 per cent. (Source: Extending Banking to the poor in India, Amit Singhal and
Bikram Duggal, ICICI Bank).
Qualitative growth:
The growth of banking in the coming years is likely to be more qualitative than quantitative,
according to the report. Based on the projections made in the "India Vision 2020" prepared
by the Planning Commission and the Draft 10th Plan, the report forecasts that the pace of
expansion in the balance-sheets of banks is likely to decelerate.
The total assets of all scheduled commercial banks by end-March 2010 is estimated at Rs
40, 90,000 crore. That will form about 65 per cent of GDP at current market prices as
15

compared to 67 per cent in 2002-03. Banks assets are expected to grow at an annual
composite rate of growth of 13.4 per cent during the rest of the decade against 16.7 per
cent between 1994-95 and 2002-03.
On the liability side, there is likely to be large additions to capital base and reserves. As the
reliance on borrowed funds increases, the pace of deposit growth may slow down. On the
asset side, the pace of growth in both advances and investments is forecast to weaken.
The high GDP growth in India is creating lots of job opportunities in urban and semi-urban
India and it will go further into rural India increasing the potential for rural
entrepreneurships and rural growth with higher per-capita income and savings
opportunities.
Investment in Indian market:
India, among the European investors, is believed to be a good investment despite
political uncertainty, bureaucratic hassles, shortages of power and infrastructural
deficiencies. India presents a vast potential for overseas investment and is actively
encouraging the entrance of foreign players into the market. No companies, of any size,
aspiring to be a global player can, for long ignore this country which is expected to become
one of the top three emerging economies.
Market potential:
India is the fifth largest economy in the world (ranking above France, Italy, the United
Kingdom, and Russia) and has the third largest GDP in the entire continent of Asia. It is
also the second largest among emerging nations. (These indicators are based on
purchasing power parity.) India is also one of the few markets in the world which offers high
prospects for growth and earning potential in practically all areas of business. Yet, despite
the practically unlimited possibilities in India for overseas businesses, the world's most
populous democracy has, until fairly recently, failed to get the kind of enthusiastic attention
generated by other emerging economies such as China.
Trend Analysis:
Financial and Banking Sector Reforms
The last decade witnessed the maturity of India's financial markets. Since 1991, every
governments of India took major steps in reforming the financial sector of the country. The
important achievements in the following fields is discussed under separate heads:
Financial markets
Regulators
Non-banking finance companies
The capital market
Mutual funds
Overall approach to reforms
Deregulation of banking system
Consolidation imperative

Banking reform:
Indian banking has come a long way since India embarked on the reforms path about a
decade-and-a-half ago in 1991-92. The reforms have unleashed tremendous change in the
banking sector. Today, Indian banks are as technology-savvy as their counterparts in
developed countries. On the networking front, branch banking the traditional forte,
16

coupled with ATM networks-the now imperative, have evolved to place the banking services
on a new trajectory. The competitive forces have led to the emergence of Internet and
mobile banking too, to let banks attract and retain customers.
The banking sector is also gearing up to embrace the Basel II regime, to benchmark with
the global standards. Similarly, retail lending has emerged as another major opportunity for
banks. All these factors are driving up competition, which in turn forcing banks to innovate.
A slew of innovative products, which could not be imagined even a couple of years ago, are
a reality now. Even mundane products like Saving Account, Personal Loans and Home
Loans have become subjects of innovation.
1. First Banking Sector Reforms (1991)
The Narasimham Committee had proposed wide-ranging reforms for:
1. Improving the financial viability of the banks;
2. Improving the macroeconomic policy framework for banks;
3. Increasing their autonomy from government directions;
4. Allowing a greater entry to the private sector in banking;
5. Liberalizing the capital markets;
6. Improvement in the financial health and competitive position of the banks;
7. Furthering operational flexibility and competition among the financial institutions.
A number of reforms initiatives have been taken to remove or minimize the distortions
impinging upon the efficient and profitable functioning of banks. These include the
followings:
1. Reduction in SLR & CRR
2. Transparent guidelines or norms for entry and exit of private sector banks
3. Public sector banks have been allowed for direct access to capital markets
4. The regulated interest rates have been rationalized and simplified.
5. Branch licensing policy has been liberalized
6. A board for Financial Bank Supervision has been established to strengthen the
supervisory system of the RBI.

17

CHAPTER-2
COMPANY PROFILE

18

OVERVIEW
State Bank of India is the largest and one of the oldest commercial bank in India, in
existence for more than 200 years. The bank provides a full range of corporate, commercial
and retail banking services in India. Indian central bank namely Reserve Bank of India (RBI)
is the major share holder of the bank with 59.7% stake. The bank is capitalized to the extent
of Rs.646bn with the public holding (other than promoters) at 40.3%. SBI has the largest
branch and ATM network spread across every corner of India. The bank has a branch
network of over 14,000 branches (including subsidiaries). Apart from Indian network it also
has a network of 73 overseas offices in 30 countries in all time zones, correspondent
relationship with 520 International banks in 123 countries. In recent past, SBI has acquired
banks in Mauritius, Kenya and Indonesia. The bank had total staff strength of 198,774 as
on 31st March, 2006. Of this, 29.51% are officers, 45.19% clerical staff and the remaining
25.30% were sub-staff. The bank is listed on the Bombay Stock Exchange, National Stock
Exchange, Kolkata Stock Exchange, Chennai Stock Exchange and Ahmedabad Stock
Exchange while its GDRs are listed on the London Stock Exchange. SBI group accounts for
around 25% of the total business of the banking industry while it accounts for 35% of the
total foreign exchange in India. With this type of strong base, SBI has displayed a continued
performance in the last few years in scaling up its efficiency levels. Net Interest Income of
the bank has witnessed a CAGR of 13.3% during the last five years. During the same
period, net interest margin (NIM) of the bank has gone up from as low as 2.9% in FY02 to
3.40% in FY06 and currently is at 3.32%.
Management:The bank has 14 directors on the Board and is responsible for the management of the
Banks business. The board in addition to monitoring corporate performance also carries
out functions such as approving the business plan, reviewing and approving the annual
budgets and borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the Chairman of
the bank. The five-year term of Mr. Bhatt will expire in March 2011. Prior to this
appointment, Mr. Bhatt was Managing Director at State Bank of Travancore. Mr. Bhatt has
more than 30 years of experience in the Indian banking industry and is seen as futuristic
leader in his approach towards technology and customer service. Mr. Bhatt has had the
best of foreign exposure in SBI. We believe that the appointment of Mr. Bhatt would be a
key to SBIs future growth momentum. Mr. T S Bhattacharya is the Managing Director of the
bank and known for his vast experience in the banking industry. Recently, the senior
management of the bank has been broadened considerably. The positions of CFO and the
head of treasury have been segregated, and new heads for rural banking and for corporate
development and new business banking have been appointed. The managements thrust
on growth of the bank in terms of network and size would also ensure encouraging
prospects in time to come.
Shareholding & Liquidity (Till 30th Sept. 2007)
Reserve Bank of India is the largest shareholder in the bank with 59.7% stake followed by
overseas investors including GDRs with 19.78% stake as on September 06. Indian financial
institutions held 12.3% while Indian public held just 8.2% of the stock. RBI is the monetary
authority and having majority shareholding reflects conflict of interest. Now the government
is rectifying the above error by transferring RBIs holding to itself. Post this, SBI will have a
19

further headroom to dilute the GOIs stake from 59.7% to 51.0%, which will further improve
its CAR and Tier I ratio.

Key Areas of Operations

The business operations of SBI can be broadly classified into the key income generating
areas
such as National Banking, International Banking, Corporate Banking, & Treasury
operations.

20

HISTORY

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 modernise 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.

The three banks were governed by royal charters, which were revised from time to time.
Each charter provided for a share capital, four-fifth of which were privately subscribed and
the rest owned by the provincial government. The members of the board of directors, which
managed the affairs of each bank, were mostly proprietary directors representing the large
European managing agency houses in India. The rest were government nominees,
invariably civil servants, one of whom was elected as the president of the board.

Group Photograph of Central Board (1921)

21

Business
The business of the banks was initially confined to discounting of bills of exchange or other
negotiable private securities, keeping cash accounts and receiving deposits and issuing
and circulating cash notes. Loans were restricted to Rs.one Lakh and the period of
accommodation confined to three months only. The security for such loans was public
securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not
of a perishable nature' and no interest could be charged beyond a rate of twelve per cent.
Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule
twist and silk goods were also granted but such finance by way of cash credits gained
momentum only from the third decade of the nineteenth century. All commodities, including
tea, sugar and jute, which began to be financed later, were either pledged or hypothecated
to the bank. Demand promissory notes were signed by the borrower in favour of the
guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or
on the mortgage of houses, land or other real property was, however, forbidden.
Indians were the principal borrowers against deposit of Company's paper, while the
business of discounts on private as well as salary bills was almost the exclusive monopoly
of individuals Europeans and their partnership firms. But the main function of the three
banks, as far as the government was concerned, was to help the latter raise loans from
time to time and also provide a degree of stability to the prices of government securities.

First

Five

Year

Plan

In 1951, when the First Five Year Plan was launched, the development of rural India was
given the highest priority. The commercial banks of the country including the Imperial Bank
of India had till then confined their operations to the urban sector and were not equipped to
respond to the emergent needs of economic regeneration of the rural areas. In order,
therefore, to serve the economy in general and the rural sector in particular, the All India
Rural Credit Survey Committee recommended the creation of a state-partnered and statesponsored bank by taking over the Imperial Bank of India, and integrating with it, the former
state-owned or state-associate banks. An act was accordingly passed in Parliament in May
1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of
the resources of the Indian banking system thus passed under the direct control of the
State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling
the State Bank of India to take over eight former State-associated banks as its subsidiaries.
The State Bank of India was thus born with a new sense of social purpose aided by the 480
offices comprising branches, sub offices and three Local Head Offices inherited from the
Imperial Bank. The concept of banking as mere repositories of the community's savings and
lenders to creditworthy parties was soon to give way to the concept of purposeful banking
subserving the growing and diversified financial needs of planned economic development.
The State Bank of India was destined to act as the pacesetter in this respect and lead the
Indian banking system into the exciting field of national development.

22

COMPETITORS

Competitors and other players in the field:Top Performing Public Sector Banks
Andhra Bank
Allahabad Bank
Punjab National Bank
Dena Bank
Vijaya Bank
Top Performing Private Sector Banks
HDFC Bank
ICICI Bank
AXIS Bank
Kotak Mahindra Bank
Centurion Bank of Punjab
Top Performing Foreign Banks
Citibank
Standard Chartered
HSBC Bank
ABN AMRO Bank
American Express
Strength/ Opportunities:
The growth for SBI in the coming years is likely to be fueled by the following factors:
Continued effort to increase low cost deposit would ensure improvement in NIMs and
hence earnings.
Growing retail & SMEs thrust would lead to higher business growth.
Strong economic growth would generate higher demand for funds pursuant to higher
corporate demand for credit on account of capacity expansion.
23

Weakness/ Threats:
The risks that could ensue to SBI in time to come are as under:
SBI is currently operating at a lowest CAR. Insufficient capital may restrict the growth
prospects of the bank going forward.
Stiff competition, especially in the retail segment, could impact retail growth of SBI and
hence slowdown in earnings growth.
Contribution of retail credit to total bank credit stood at 26%. Significant thrust on growing
retail book poses higher credit risk to the bank.
Delay in technology upgradation could result in loss of market shares.
Management indicated a likely pension shortfall on account of AS-15 to be close to
Rs50bn.
Slow down in domestic economy would pose a concern over credit off-take thereby
impacting earnings growth.
DIFFERENT PRODUCTS OF SBI:
DEPOSIT

LOANS

CARDS

DIFFERENT CREDIT
CARDS
SBI International
cards

Savings
Account

Home
Loans

Consumer
Cards

Life Plus
Senior Citizens
Savings
Account

Loan
Against
Property

Credit Card

SBI Gold cards

Fixed
Deposits

Personal
Loans

Travel Card

SBI Gold Master

cards

Security

Car Loan

Debit Cards

Your City Your

Cards

Recurring
Deposits

Loans
against
Securities

Commercial
Cards

Tax-Saver
Fixed Deposit

Two
Wheeler

Corporate
Cards

Partnership
Cards

Deposits

24

Salary Account

Preapproved
Loans

Prepaid Card

Advantage
Woman
Savings
Account

Retail Asset

Purchase Card

Rural Savings
Account

Farmer
Finance

Distribution
Cards

People's
Savings
Account

Business
Installment
Loans

Business Card

Freedom
Savings
Account

Flexi Cash

Merchant
Services

SBI Employee
Cards

SBI Advantage
Cards

25

26

CHAPTER-3

27

Introduction to Advance Product:

Now a day not all the people have the capacity to fulfill their requirement by their own
earning, thats why they need help from others. For this so many government & private
sector bank provide them money to fulfill their requirement, thats call the Advance Product
(loan product) of the bank. All the banks have so many different types of advance product
as per the requirement of the people or customers. In Bhubaneswar also there are so many
banks those provide loan to the people for different causes.
Types of Advance Product

Home Loan
Educational Loan
Car Loan
Personal Loan
Property Loan
Loan Against Shares\Debentures
Etc.

Now a day a large no. of people are taking loan form different banks. It helps people to fulfill
their need and it really easy to repayment the loan amount with a longer repayment period.

SBI Advance Product

SBI Home Loans:
Purpose
Purchase/ Construction of House/ Flat
Purchase of a plot of land for construction of House
Extension/ repair/ renovation/ alteration of an existing House/ Flat
Purchase of Furnishings and Consumer Durables as a part of the project cost.
Takeover of an existing loan from other Banks/ Housing Finance Companies.
Eligibility
Minimum age 18 years as on the date of sanction
Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the
loan should be fully repaid.
28

Availability of sufficient, regular and continuous source of income for servicing the loan
repayment.
Loan Amount
40 to 60 times of NMI, depending on repayment capacity as % of NMI as under
Net Annual Income

EMI/NMI Ratio

Upto Rs.2 lacs

40%

Above Rs.2 lac to Rs. 5 lacs 50%

Above Rs. 5 lacs

55%

To enhance loan eligibility you have option to add:

1. Income of your spouse/ your son/ daughter living with you, provided they have a steady
income and his/ her salary account is maintained with SBI.
2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is
proposed to be rented out.
3. Depreciation, subject to some conditions.
4. Regular income from all sources

Margin (Special Festival Season Offer)

Purchase/ Construction of a new House/ Flat/ Plot of land: 15% for loans up to Rs. 1
cr., 20% for loans above Rs. 1 cr.
Repairs/ Renovation of an existing House/ Flat: 15%

* Fixed rate loans will be subject to: 'force maejure' clause and interest reset at the end of
every two years on the basis of fixed interest rates prevailing then.

CAR LOAN:
Purpose
You can take finance for:
A new car, jeep or Multi Utility Vehicles (MUVs)
A used car / jeep (not more than 5 years old). (Any make or model).
Take over of existing loan from other Bank/Financial institution (Conditions apply)

29

Eligibility
To avail an SBI Car Loan, you should be :

Individual between the age of 21-65 years of age.

A Permanent employee of State / Central Government, Public Sector Undertaking,
Private company or a reputed establishment or
A Professionals or self-employed individual who is an income tax assessee or
A Person engaged in agriculture and allied activities.
Net Annual Income Rs. 100,000/- and above.

Salient Features
Loan Amount
There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times
the net annual income can be sanctioned. If married, your spouse's income could also be
considered provided the spouse becomes a co-borrower in the loan. The loan amount
includes finance for one-time road tax, registration and insurance!
No ceiling on the loan amount for new cars.
Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.
Type of Loan:1. Term Loan
2. Overdraft - a) For New vehicles only
b) Minimum loan amount: Rs. 3 lacs.
Documents required
you would need to submit the following documents along with the completed application
form if you are an existing SBI account holder:
1.
2.
3.
4.
5.
6.
7.

Statement of Bank account of the borrower for last 12 months.

2 passport size photographs of borrower(s).
Signature identification from bankers of borrower(s).
A copy of passport /voters ID card/PAN card.
Proof of residence.
Latest salary-slip showing all deductions
I.T. Returns/Form 16: 2 years for salaried employees and 3 years for
professional/self-employed/businessmen duly accepted by the ITO wherever
applicable to be submitted.
8. Proof of official address for non-salaried individuals.
If you are not an account holder with SBI you would also need to furnish documents that
establish your identity and give proof of residence.

30

Margin
New / Used vehicles: 15% of the on the road price.
Repayment
You enjoy the longest repayment period in the industry with us.
Repayment period:
For Salaried:
Maximum of 84 months
For Self-employed & Professionals: Maximum 60 months
Repayment period for used vehicles :Up to 84 months from the date of original purchase of
the vehicle (subject to maximum tenure as above).
Prepayment Penalty:
Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain
conditions
EDUCATION LOAN:
A term loan granted to Indian Nationals for pursuing higher education in India or abroad
where admission has been secured.
Eligible Courses
All courses having employment prospects are eligible.

Graduation courses/ Post graduation courses/ Professional courses

Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan

Fees payable to college/school/hostel

Examination/Library/Laboratory fees
Purchase of Books/Equipment/Instruments/Uniforms
Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for
the entire course)
Travel Expenses/Passage money for studies abroad
Purchase of computers considered necessary for completion of course
Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc.
Amount of Loan

For studies in India, maximum Rs. 10 lacs

Studies abroad, maximum Rs. 20 lacs
31

Interest Rates
(with effect from 1st June 2008)
For loans up to Rs.4 lacs - 11.75 % p.a. Floating
For loans above Rs. 4 lacs and upto Rs.7.50 lacs - 13.25 % Floating
For loans above Rs.7.50 lacs - 12.25% p.a. Floating
Processing Fees

No processing fee/ upfront charges

Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in
the margin money

Repayment Tenure
Repayment will commence one year after completion of course or 6 months after securing
a job, whichever is earlier.
Place of Study

Loan Amount

Repayment in Period
Years

Studies in India

Rs. 10.0 lacs

5-7

Studies Abroad

Rs. 20.0 lacs

5-7

Security
Amount

Upto Rs. 4 lacs

For loans upto Rs. 10.00 lacs for Studies in

India and upto Rs. 20.00 lacs for studies abroad
No Security

Above Rs. 4 lacs to Rs. 7.50

Collateral security in the form of suitable third party

Guarantee.
l
The bank may, at its discretion, in
exceptional
a
cases, weive third party guarantee if
satisfied
c
with the net-worth/means of parent/s who
would
s be executing the documents as "joint
borrower"

Above Rs. 7.50 lacs.

Tangible collateral security of suitable value, along

with the assignment of future income of the student
For payment of installments.

All loans should be secured by parent(s)/guardian of the student borrower. In case of

married person, co-obligator can be either spouse or the parent(s)/ parents-in-law
32

Margin

For loans up to Rs.4.0 lacs : No Margin

For loans above Rs.4.0 lacs:
o Studies in India: 5%
o Studies Abroad: 15%

Documentation Required

Completed Education Loan Application Form.

Mark sheets of last qualifying examination
Proof of admission scholarship, studentship etc
Schedule of expenses for the specified course
2 passport size photographs
Borrower's Bank account statement for the last six months
Income tax assessment order, of last 2 years
Brief statement of assets and liabilities, of the Co-borrower
Proof of Income (i.e. Salary slips/ Form 16 etc)

SBI SARAL PERSONAL LOAN:

Purpose
The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic
or foreign travel, medical treatment of self or a family member, meeting any financial
liability, such as marriage of son/daughter, defraying educational expenses of wards,
meeting margins for purchase of assets etc.)
Eligibility
You are eligible if you are a Salaried individual of good quality corporate, self employed
engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing.
Salient Features
Loan Amount
Your personal loan limit would be determined by your income and repayment capacity.
Minimum: Rs.24,000/- in metro and urban centres
Rs.10, 000/- in rural/semi-urban centres
Maximum: 12 times Net Monthly Income for salaried individuals and pensioners subject to
a ceiling of Rs.10 lacs in all centres
Documents Required
Important documents to be furnished while opening a Personal Loan Account:
For existing bank customers
Passport size photograph

33

From salaried individuals

Latest salary slip and Form 16
Margin not insist on any margin amount.
Interest Rates
3.25% above SBAR floating i.e. 15.50% p.a.
Repayment
The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to,
without attracting any prepayment penalty.
Security
NIL
Processing Fee
Processing charges are 1-2% of the loan amount. This is amongst the lowest fees in the
industry. Processing fees have to be paid upfront. There are no hidden costs or other
administrative charges.
PROPERTY LOAN:
Purpose
This is an all-purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If
amount of loan is Rs.25.00 lacs and above then purpose of loan will have to be specified
along with an undertaking that loan will not be used for any speculative purpose whatever
including speculation on real estate and equity shares.

Eligibility
You are eligible if you are:
A. An individual who is;
a. An Employee or
b. A Professional, self-employed or an income tax assesse or
c. Engaged in agricultural and allied activities.
B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net Annual Income
(others) is in excess of Rs.1,50,000/-.
The income of the spouse may be added if he/she is a co-borrower or a guarantor.
C. Maximum age limit: 60 years.

34

Salient Features
Loan Amount
Minimum: Rs.25, 000/Maximum: Rs.1 crore. The amount is decided by the following calculation:

24 times the net monthly income of salaried persons (Net of all deductions including
TDS) OR
2 times the net annual income of others (income as per latest IT return less taxes
payable)

Margin
We will finance upto 75% of the market value of your property.
Interest
Term

Loan

0.75%

above

SBAR.

i.e.13.00%

p.a.

Floating

Repayment
Maximum of 60 equated monthly installments, upto 120 months for salaried individuals with
check-off facility. You could opt to divert any surplus funds towards prepayment of the loan
without attracting any penalty.
Security
As per banks extant instructions.
LOAN AGAINST SHARES \ DEBENTURES:
Eligibility
This facility is available to our existing individual customers enjoying a strong relationship
with SBI. This loan could be availed either singly or as a joint account with spouse in 'Either
or Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan.
The facility is available at 50 select centers.
Salient Features:
Purpose
For meeting contingencies and needs of personal nature. Loan will be permitted for
subscribing to rights or new issue of shares / debentures against the security of existing
shares / debentures. Loan will not be sanctioned for (i) speculative purposes (ii) intercorporate investments or (iii) acquiring controlling interest in company / companies.
Loan Amount
You can avail of loans up to Rs 20.00 lacs against your shares/debentures.

35

Documents Required
You will be required to submit a declaration indicating:
Details of loans availed from other banks/ branches for acquiring shares/
debentures.
Details of loans availed from other banks/ branches against security of shares/
debentures
Margin
You will need to provide a margin amount of 50% of the prevailing market prices of the
shares/ non-convertible debentures being offered as security. (The market prices refer to
the prices in the Stock Exchanges as reported in the Economic Times.)
Interest
At SBAR Floating i.e. 12.25% p.a.
Repayment Schedule
To be liquidated in maximum period of 30 months through a suitable reducing DP
programme.
In case of a default or if the outstanding is over Rs.20.00 lacs, the shares/debentures will
be transferred in the name of the Bank.
Security:
Pledge of the demat shares/debentures against which overdraft is granted.

Research objectives
The study has been aimed at attaining the following objectives;
To understand the customers expectations of services provided by
SBH.
To know what kind of services are offering by SBH.
To analyze the customers perceptions of bank services and measure
their satisfaction towards SBH.
To suggest measures to improve the bank services for long-term
customer loyalty.

36

Significance and scope

The study is focused in Hyderabad region.

The study is focused to State Bank of India.
The study is focused on the personal services offered by SBI not all the
services.

37

CHAPTER-4
RESEARCH METHODOLOGY

38

Research methodology
Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues involved &
conduct situational analysis. The methodology includes the overall research design,
sampling procedure & fieldwork done & finally the analysis procedure. The methodology
used in the study consistent of sample survey using both primary & secondary data. The
primary data has been collected with the help of questionnaire as well as personal
observation book, magazine; journals have been referred for secondary data. The
questionnaire has been drafted & presented by the researcher himself.

Sample Size:
Sample of 200 people was taken into study, and their data was collected
Sampling Technique:
To study the Project, a Simple Random Sampling technique is used.
Data Collection:
Collection of data is done by
Secondary Data & through
Questionnaire
i.e., Primary data was collected through Questionnaire.
Data Analysis:
After data collection, Im able to analyze customers views, ideas and opinions
related to Advance Product and about SBI Advance Product and from this, SBI
will come to know the customer requirements.
Data Interpretation:

Interpretation of data is done by using statistical tools like Pie

diagrams, Bar graphs, and also using quantitative techniques (by
using these techniques) accurate information is obtained.

39

 Classification & tabulation of data:

The data thus collected were classified according to the categories,

counting sheets & the summary tables were prepared. The resultant
tables were one dimensional, two dimensional.

Statistical tools used for analysis:

Out of the total respondents, the respondents who responded logically

were taken into account while going into statistical details & analysis of
data. The tools that have been used for analyzing data & inference
drawing are mainly statistical tools like percentage, ranking, averages,
etc.

As per questionnaire and market surveys I have find out different responses from different
people. According to their responses I analyze the findings and draw certain remarks.

40

CHAPTER-5
Analysis of data

41

GRAPHICAL REPRESENTATION OF DATA

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

SBI

60 % (120)

ICICI

33 % (66)

HDFC
OTHER

5% (10)
2% (4)

TOTAL NO. OF PEOPLE

2000

RESPONSES OF PEOPLE IN %
5% 2%

33%
60%

SBI
ICICI
HDFC
OTHER

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

42

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

YES

85% (170)

NO

15% (30)

Total No. of People

200

NO
15%

YES
85%

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

43

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

YES

95%(190)

NO

5% (10)

TOTAL NO. OF PEOPLE

200

% OF PEOPLE
5%

YES
NO
95%

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

44

Q4. Which bank you prefer for taking loans?

85% (180)
SBI
ICICI

7% (14)

HDFC

2% (4)

OTHER

1% (2)

TOTAL NO. OF PEOPLE

200

Sales
2% 1%
12%
SBI
ICICI
HDFC

85%

OTHER

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

45

Q5. If you prefer SBI for taking loan than what influence you to take Loan from SBI?
Most of the people said that they prefer SBI for taking loan because of the transparency
and the lowest interest rate for any kind of loan product. And it is easy to get loan from SBI
as compare to other bank because less paper work is require and as it is the largest govt.
bank in India and having partnership with RBI (Reserve Bank of India) and other
association, it is easier for SBI to give loan to people with a longer repayment period.
Q.6 Which loan product of SBI you have used?
HOME LOAN
EDUCATIONAL LOAN
CAR LOAN
PERSONAL LOAN
OTHER
TOTAL NO. OF PEOPLE

47%
20%
15%
10%
8%
180

Sales
10%

8%
47%

15%

HOME LOAN
EDUCATIONAL LOAN
CAR LOAN

20%

PERSONAL LOAN
OTHER

From the sample size 85% of people are using the SBI loan product. From the 1800 people
47% of people took home loan from SBI. 20% of people took education loan for their
children, 15% of people took car loan from SBI. Some of the customer took 2 type of loan
from SBI like both car & educational loan and home & car loan. 10% of people took
personal loan.
46

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

Bad

0% (0)

Satisfactory

2% (4)

Good

55% (110)

Excellent

43% (86)

TOTAL NO. OF PEOPLE

200

CUSTOMER PERCEPTION TOWARDS THE SERVICE PROVIDE

BY SBI IN ADVANCE PRODUCT
0% 2%
43%

BAD

55%

SATISFACTORY
GOOD
EXCELLENT

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

47

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

LESS PAPER WORK

3% (6)

ATTRACTIVE INTEREST RATE

35% (70)

TRANSPARENCY

20% (40)

SIMPLE AND FAST PROCESSING

2% (4)

LONGER REPAYMENT PERIOD

40% (80)

TOTAL NO. OF PEOPLE

200

FEATURES LIKE BY CUSTOMER

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

ATTRACTIVE
INTEREST RATE

TRANSPARENCY

SIMPLE & FAST

PROCESSING

LONGER
REPAYMENT
PERIOD

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

48

CHAPTER-6

49

PROJECT Findings:
From this project it is found that SBI advance product having the 1st place in the
market at Hyderabad, there is a great opportunity to compete with ICICI Bank & to
retain its customer by fulfilling the requirement of customer in SBI advance product.
It has been observed that approximately 85% correspondents are using advance
product of SBI and 15% are not using any type of advance product of SBI in
Hyderabad.
All of SBI customers are satisfied with the services provided by the bank.
Many of these customers satisfied with the low interest rate and longer repayment
period of the advance product.
Most of the customers at Hyderabad prefer to take loan from SBI.
Approximately 43% of advance product users said that the service of SBI in advance
product is excellent.
A response from customer care is so clear & good.
Many customers have no time to call customer care so that they are not able to know
about the service & features of SBI advance product.
Most customers are shifted from other banks advance product to SBI because of
hidden charges, high interest rate, less repayment period.
Government employees are more concern than private employees for advance
product.

REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT:

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

50

Suggestion & Recommendation

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

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Suggestions given by the consumers at the time of survey:

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

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

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

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

Launch Innovative product

Customized advance products

Better customer services

Fastest customers problem solving techniques

Customer retention

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

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Questionnaire
Name - _____________________________________
Occupation-__________________________________
Contact Detail -_______________________________

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

a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)

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

a) YES
b) NO

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

Q. Which bank you prefer for taking loans?

a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)

Q. If you prefer SBI for taking loan than what influence you to take Loan from SBI?
___________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_______.

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Q. Which loan product of SBI you have used?

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

Q. Any suggestion you want to give for the betterment of SBI advance product.
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_______.

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Bibliography
Text Books:
Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed.
New Jersey: Prentice Hall
Wilson A. (2003), Marketing Research: An Integrated Approach
Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth Edition

Internet:
www.wikipedia.org
www.sbi.com
www.sbi.co.in
www.bnet.com

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