Title of the Project

A STUDY ON FUTURE AND OPITONS

INTRODUCTION OF THE PROJECT

State Bank of India, incorporated in the year 1955, is a
Large

Cap

company

(having

market

cap

of

Rs

143,145.61 Cr.) operating in Banks sector.

State Bank of India key Products/Revenue Segments
include Interest & Discount on Advances & Bills which
contributed Rs 112343.91 Cr to Interest Income (73.71%
of Total Interest Income),Income From Investment which
contributed Rs 37087.77 Cr to Interest Income (24.33% of
Total

Interest

Income),Interest

which

contributed

Rs

2460.27 Cr to Interest Income (1.61% of Total Interest

Income),Interest On Balances with RBI and Other InterBank Funds which contributed Rs 505.12 Cr to Interest
Income (0.33% of Total Interest Income), for the year
ending 31-Mar-2015. The Bank has reported a Gross Non
Performing Assets (Gross NPAs) of Rs 0.00 Cr. (0.00% of
total assets) and Net Non Performing Assets (Net NPAs) of
Rs 0.00 Cr. (0.00% of total assets).
For the quarter ended 31-Dec-2015, the company has
reported a Consolidate Interest Income of Rs. 39204.21
2

Cr., down -0.51% from last quarter Interest Income of Rs.

39405.42 Cr. and up 0.77% from last year same quarter
Interest Income of Rs. 38905.91 Cr. Company has reported
net profit after tax of Rs. 1374.02 Cr. in latest quarter.
The companys management includes Mr.A K Gupta, Mr.A
N Appaiah, Mr.Ajit Sood, Mr.Ashwini Mehra, Mr.Badal
Chandra

Das,

Mr.C

Sasikumar,

Mr.Karnam

Sekar,

Mr.Krishna Mohan Trivedi, Mr.Lingaraj Mahapatra, Mr.M S

Shastri, Mr.Mrityunjay Mohapatra, Mr.P K Gupta, Mr.P S
Prakash Rao, Mr.Pallav Mohapatra, Mr.Prashant Kumar,
Mr.Riten Ghose, Mr.Sanjay Kumar Magoo, Mr.Sudhir Dubey,
Mrs.Rajni Mishra, Mrs.Varsha V Purandare, Dr.Urjit R Patel,
Mr.B Sriram, Mr.Deepak I Amin, Mr.M D Mallya, Mr.Parveen
Kumar

Gupta,

Mr.Rajnish

Kumar,

Mr.Sanjiv

Malhotra,

Mr.Sunil Mehta, Mr.Tribhuwan Nath Chaturvedi, Mr.V G

Kannan, Mrs.Anshula Kant, Mrs.Arundhati Bhattacharya,
Ms.Anjuly Chib Duggal. With an asset base of $352 billion and
$285 billion in deposits, SBI is a regional banking behemoth and is one
of the largest financial institutions in the world. It has a market share
among Indian commercial banks of about 20% in deposits and loans. The
State Bank of India is the 29th most reputed company in the world
3

according to Forbes. Also SBI is the only bank featured in the coveted
"top 10 brands of India" list in an annual survey conducted by Brand
Finance and The Economic Times in 2010.

OBJECTIVES
1) To identify the financial strengths & weakness of the
company.
2) Through the net profit ratio & other profitability ratio,
understand the profitability of the company.
3) Evaluating companys performance relating to financial
statement analysis.
4) To know the liquidity position of the company with the
help of current ratio.
5) To find out the utility of financial ratio in credit analysis
& determining the financial capacity of the firm.

SCOPE OF THE STUDY

Each and every project study along with its certain objectives also have
scope for future. And this scope in future gives to new researches a new
need to research a new project with a new scope. Scope of the study not
only consist one or two future business plan but sometime it also gives
idea about a new business which becomes much more profitable for the
researches then the older one.
Scope of the study could give the projected scenario for a new
successful strategy with a proper implementation plan.

LIMITATIONS OF STUDY
Since the road to improvement is never ending, so this
study also suffers from certain limitations. Some of them
are as follows:
Because of illiteracy, it was a time consuming method
in which continuous guidance was required.
Questionnaire method involves some uncertainty of
response. Co-operation on the part of informants, in
some cases, was difficult to presume.
The project was limited to a period of 8 weeks and is
done purely for the academic purpose.
It is possible that the information supplied by the
informants may be incorrect. So, the study may lack
accuracy.

CHAPTER -2
INDUSTRY PROFILE
State Bank of India (SBI) is the largest Indian banking and financial
services company (by turnover and total assets) with its headquarters in
Mumbai, India. It is state-owned. The bank traces its ancestry to British
India, through the Imperial Bank of India, to the founding in 1806 of the
Bank of Calcutta, making it the oldest commercial bank in the Indian
Subcontinent. Bank of Madras merged into the other two presidency
banks, Bank of Calcutta and Bank of Bombay to form Imperial Bank of
India, which in turn became State Bank of India. The government of India
nationalised the Imperial Bank of India in 1955, with the Reserve Bank of
India taking a 60% stake, and renamed it the State Bank of India. In 2008,
the government took over the stake held by the Reserve Bank of India.

SBI provides a range of banking products through its vast network of

branches in India and overseas, including products aimed at non-resident
Indians (NRIs). The State Bank Group, with over 16,000 branches, has
the largest banking branch network in India. SBI has 14 Local Head
Offices and 57 Zonal Offices that are located at important cities
throughout the country. It also has around 130 branches overseas.
With an asset base of $352 billion and $285 billion in deposits, SBI is a
regional banking behemoth and is one of the largest financial institutions
in the world. It has a market share among Indian commercial banks of
about 20% in deposits and loans. The State Bank of India is the 29th most
reputed company in the world according to Forbes. Also SBI is the only
bank featured in the coveted "top 10 brands of India" list in an annual
survey conducted by Brand Finance and The Economic Times in 2010.
The State Bank of India is the largest of the Big Four banks of India,
along with ICICI Bank, Punjab National Bank and HDFC Bankits
main competitors.
TRANSFORMATION JOURNEY IN STATE BANK OF INDIA
The State Bank of India, the countrys oldest Bank and a premier in terms
of balance sheet size, number of branches, market capitalization and
profits is today going through a momentous phase of Change and
8

Transformation the two hundred year old Public sector behemoth is

today stirring out of its Public Sector legacy and moving with an ability
to give the Private and Foreign Banks a run for their money.
The bank is entering into many new businesses with strategic tie ups
Pension Funds, General Insurance, Custodial Services, Private Equity,
Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services,
structured products etc each one of these initiatives having a huge
potential for growth.

The Bank is forging ahead with cutting edge technology and innovative
new banking models, to expand its Rural Banking base, looking at the
vast untapped potential in the hinterland and proposes to cover 100,000
villages in the next two years.
It is also focusing at the top end of the market, on whole sale banking
capabilities to provide Indias growing mid / large Corporate with a
complete array of products and services. It is consolidating its global
treasury operations and entering into structured products and derivative
instruments. Today, the Bank is the largest provider of infrastructure debt
and the largest arranger of external commercial borrowings in the
country. It is the only Indian bank to feature in the Fortune 500 list.
The Bank is changing outdated front and back end processes to modern
customer friendly processes to help improve the total customer
9

experience. With about 8500 of its own 10000 branches and another 5100
branches of its Associate Banks already networked, today it offers the
largest banking network to the Indian customer. The Bank is also in the
process of providing complete payment solution to its clientele with its
over 21000 ATMs, and other electronic channels such as Internet banking,
debit cards, mobile banking, etc.
With four national level Apex Training Colleges and 54 learning Centres
spread all over the country the Bank is continuously engaged in skill
enhancement of its employees. Some of the training programes are
attended by bankers from banks in other countries.
The bank is also looking at opportunities to grow in size in India as well
as Internationally. It presently has 82 foreign offices in 32 countries
across the globe. It has also 7 Subsidiaries in India SBI Capital
Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI
Cards - forming a formidable group in the Indian Banking scenario. It is
in the process of raising capital for its growth and also consolidating its
various holdings.
Throughout all this change, the Bank is also attempting to change old
mindsets, attitudes and take all employees together on this exciting road
to Transformation. In a recently concluded mass internal communication
programme termed Parivartan the Bank rolled out over 3300 two day
workshops across the country and covered over 130,000 employees in a
10

period of 100 days using about 400 Trainers, to drive home the message
of Change and inclusiveness. The workshops fired the imagination of the
employees with some other banks in India as well as other Public Sector
Organizations seeking to emulate the programme.
The CNN IBN, Network 18 recognized this momentous transformation
journey, the State Bank of India is undertaking, and has awarded the
prestigious Indian of the Year Business, to its Chairman, Mr. O. P. Bhatt
in January 2008.
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
11

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.

Establishment
The establishment of the Bank of Bengal marked the advent of limited
liability, joint-stock banking in India. So was the associated innovation in
banking, viz. the decision to allow the Bank of Bengal to issue notes,
which would be accepted for payment of public revenues within a
restricted geographical area. This right of note issue was very valuable
not only for the Bank of Bengal but also its two siblings, the Banks of
Bombay and Madras. It meant an accretion to the capital of the banks, a
capital on which the proprietors did not have to pay any interest. The
concept of deposit banking was also an innovation because the practice of
accepting money for safekeeping (and in some cases, even investment on
behalf of the clients) by the indigenous bankers had not spread as a
general habit in most parts of India. But, for a long time, and especially
upto the time that the three presidency banks had a right of note issue,
12

bank notes and government balances made up the bulk of the investible
resources of the banks.
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.

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
13

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.
Major change in the conditions

14

A major change in the conditions of operation of the Banks of Bengal,

Bombay and Madras occurred after 1860. With the passing of the Paper
Currency Act of 1861, the right of note issue of the presidency banks was
abolished and the Government of India assumed from 1 March 1862 the
sole power of issuing paper currency within British India. The task of
management and circulation of the new currency notes was conferred on
the presidency banks and the Government undertook to transfer the
Treasury balances to the banks at places where the banks would open
branches. None of the three banks had till then any branches (except the
sole attempt and that too a short-lived one by the Bank of Bengal at
Mirzapore in 1839) although the charters had given them such authority.
But as soon as the three presidency bands were assured of the free use of
government Treasury balances at places where they would open branches,
they embarked on branch expansion at a rapid pace. By 1876, the
branches, agencies and sub agencies of the three presidency banks
covered most of the major parts and many of the inland trade centres in
India. While the Bank of Bengal had eighteen branches including its head
office, seasonal branches and sub agencies, the Banks of Bombay and
Madras had fifteen each.
Presidency Banks Act

15

The presidency Banks Act, which came into operation on 1 May 1876,
brought the three presidency banks under a common statute with similar
restrictions on business. The proprietary connection of the Government
was, however, terminated, though the banks continued to hold charge of
the public debt offices in the three presidency towns, and the custody of a
part of the government balances. The Act also stipulated the creation of
Reserve Treasuries at Calcutta, Bombay and Madras into which sums
above the specified minimum balances promised to the presidency banks
at only their head offices were to be lodged.
International Presence
As of 31 December 2009, the bank had 157 overseas offices spread over
32 countries. It has branches of the parent in Colombo, Dhaka, Frankfurt,
Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the
Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. It has offshore
banking units in the Bahamas, Bahrain, and Singapore, and representative
offices in Bhutan and Cape Town. It also has an ADB in Boston, USA.
SBI operates several foreign subsidiaries or affiliates. In 1990, it
established an offshore bank: State Bank of India (Mauritius).
In 1982, the bank established a subsidiary, State Bank of India
(California), which now has ten branches nine branches in the state of
16

California and one in Washington, D.C. The 10th branch was opened in
Fremont, California on 28 March 2011. The other eight branches in
California are located in Los Angeles, Artesia, San Jose, Canoga Park,
Fresno, San Diego, Tustin and Bakersfield.
The Canadian subsidiary, State Bank of India (Canada) also dates to
1982. It has seven branches, four in the Toronto area and three in British
Columbia.
In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the
Indo-Nigerian Merchant Bank and received permission in 2002 to
commence retail banking. It now has five branches in Nigeria.
In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches
throughout the country. In Moscow, SBI owns 60% of Commercial Bank
of India, with Canara Bank owning the rest. In Indonesia, it owns 76% of
PT Bank Indo Monex.
The State Bank of India already has a branch in Shanghai and plans to
open one in Tianjin.
In Kenya, State Bank of India owns 76% of Giro Commercial Bank,
which it acquired for US$8 million in October 2005.

17

Associate banks
SBI has five associate banks; all use the same logo of a blue circle and all
the associates use the "State Bank of" name, followed by the regional
headquarters' name;
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
Earlier SBI had only seven associate banks that constituted the State
Bank Group. Originally, the then seven banks that became the associate

18

banks belonged to princely states until the government nationalised them

between October 1959 and May 1960. In tune with the first Five Year
Plan, emphasising the development of rural India, the government
integrated these banks into the State Bank of India system to expand its
rural outreach. There has been a proposal to merge all the associate banks
into SBI to create a "mega bank" and streamline operations.
The first step towards unification occurred on 13 August 2008 when State
Bank of Saurashtra merged with SBI, reducing the number of state banks
from seven to six. Then on 19 June 2009 the SBI board approved the
merger of its subsidiary, State Bank of Indore, with itself. SBI holds
98.3% in State Bank of Indore. (Individuals who held the shares prior to
its takeover by the government hold the balance of 1.77%.)
The acquisition of State Bank of Indore added 470 branches to SBI's
existing network of 12,448 and over 21,000 ATMs. Also, following the
acquisition, SBI's total assets will inch very close to the Rs 10-lakh crore
mark. Total assets of SBI and the State Bank of Indore stood at Rs
998,119 crore as on March 2009. The process of merging of State Bank
of Indore was completed by April 2010, and the SBI Indore Branches
started functioning as SBI branches on 26 August 2010.
Non-banking Subsidiaries

19

Apart from its five associate banks, SBI also has the following nonbanking subsidiaries:
1.SBI Capital Markets Ltd
2.SBI Funds Management Pvt Ltd
3.SBI Factors & Commercial Services Pvt Ltd
4.SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
5.SBI DFHI Ltd
6.SBI General Insurance Company Limited
Current Board of Directors
After the end of O. P. Bhatt's reign as SBI Chairman on 31st March, 2011,
the post was taken over by Pratip Chaudhuri, who is the former Deputy
Managing Director of the International Division of SBI. As on 4th
August, 2011, there are twelve members in the SBI Board of Directors,
including Subir Gokarn, who is also one of the four Deputy Governors of
the Reserve Bank of India. The complete list of the Board members are:
1. Pratip Chaudhuri (Chairman)
2. Hemant G. Contractor (Managing Director)
3. Diwakar Gupta (Managing Director)

20

4. A Krishna Kumar (Managing Director)

5. Dileep C Choksi (Director)
6. S. Venkatachalam (Director)
7. D. Sundaram (Director)
8. Parthasarathy Iyengar (Director)
9. G. D. Nadaf (Officer Employee Director)
10.Rashpal Malhotra (Director)
11.D. K. Mittal (Director)
12.Subir V. Gokarn (Director)
Branches of SBI
State Bank of India has 137 foreign offices in 32 countries across
the globe.
SBI has about 25,000 ATMs (25,000th ATM was inaugurated by
the then Chairman of State Bank Shri O.P. Bhatt on 31 March
2011, the day of his retirement); and SBI group(including associate
banks) has about 45,000 ATMs.

21

 SBI has 21,500 branches, including branches that belong to its

associate banks.
SBI includes 99345 offices in India.
India's number one ADB is in bellary i e State bank of India bellary
ADB

COMPETITIOR
Name

SBI

Last Price Market Cap.

Net Interest

Net Profit

Total Assets

(Rs. cr.)

Income

1,726.65 109,642.10

81,394.36

8,264.52 1,223,736.20

Bank of Baroda

717.80

28,195.90

21,885.92

4,241.68 358,397.18

PNB

877.00

27,784.43

26,986.48

4,433.50 378,325.25

Canara Bank

437.10

19,363.53

23,064.02

4,025.89 336,078.76

Bank of India

336.20

18,397.54

21,751.72

2,488.71 351,172.55

22

Union Bank

205.75

13,071.91

16,452.62

2,081.95 235,984.44

IDBI Bank

96.45

9,496.61

18,600.82

1,650.32 253,376.80

Indian Bank

199.60

8,578.21

9,361.03

1,714.07 121,718.31

Oriental Bank

274.50

8,008.84

12,087.82

1,502.87 161,343.38

Allahabad Bank

147.80

7,038.46

11,014.69

1,423.11 151,286.36

Central Bank

91.65

5,926.33

15,220.57

1,252.41 209,757.32

Andhra Bank

103.80

5,808.44

8,291.28

1,267.07 108,900.73

IOB

93.20

5,766.74

12,101.47

1,072.54 178,784.27

Syndicate Bank

99.85

5,724.26

11,450.86

1,047.95 156,538.79

Corporation Ban

373.30

5,529.79

9,135.25

1,413.27 143,508.59

60.15

3,774.52

11,370.80

906.54 163,398.45

State Bnk Tr

558.20

2,791.00

5,228.76

727.73

70,976.75

State B Bikaner

357.00

2,499.00

4,796.48

550.88

62,954.50

Vijaya Bank

52.15

2,464.96

5,844.06

523.82

81,690.63

State Bnk My

484.95

2,269.56

4,079.08

500.62

52,032.46

Bank of Mah

46.75

2,252.01

5,563.08

330.39

76,442.21

Dena Bank

63.70

2,123.69

5,033.53

611.63

70,838.43

United Bank

59.25

2,040.69

6,341.46

523.97

90,040.53

Punjab & Sind

70.60

1,574.78

68,550.14

2,704.60

375.45

UCO Bank

UTI - Gold

23

Symbol & Slogan

The symbol of the State Bank of India is a circle and not key hole
and a small man at the centre of the circle. A circle depicts
perfection and the common man being the centre of the bank's
business.
Slogans : "Pure banking nothing else"
Recent awards and recognitions
Best Online Banking Award, Best Customer Initiative Award &
Best Risk Management Award (Runner Up) by IBA Banking
Technology Awards 2010
The Bank of the year 2009, India (won the second year in a row)
by The Banker Magazine
Best Bank Large and Most Socially Responsible Bank by the
Business Bank Awards 2009
Best Bank 2009 by Business India
The Most Trusted Brand 2009 by The Economic Times

24

 SKOCH Award 2010 for Virtual corporation Category for its epayment solution

CHAPTER 3
RESEARCH DESIGN & METHODOLOGY
RESEARCH METHODOLOGY
Primary Data:
The information is collected through the primary sources
like:
Talking with the employees of the department.
Getting information by observations.
Discussion with the head of the department.
Secondary Data:
The data is collected through the secondary sources like:
Annual Reports of the Bank.
Office manuals of the department.
Magazines, Reports in the company.
25

 Policy documents of various departments.

Types of research
Research

are

mostly

categorized

in

to

four

major

categories:

First is descriptive & Analytical

Second Applied & Fundamental
Third Quantitative & Qualitative
Fourth Conceptual & Empirical

Sampling Technique
Sampling techniques can be broadly classified in to two
types:
Probability Sampling (here the every item in the universe have the
equal chance of inclusion in the sample)

Non Probability Sampling (Here the item in the sample are

deliberately selected by the researcher)
Tools for analysis
Bar chart (Bar charts will be used for comparing two or more
values that will be taken over time or on different conditions,
usually on small data set )
Pie-chart (Circular chart divided in to sectors, illustrating relative
magnitudes or frequencies)

Tools and Techniques

26

As no study could be successfully completed without proper tools and

techniques, sames with my project. For the better presentation and right
explanation I used tools of statistics and computer very frequently. And I
am very thankful to all those tools for helping me a lot. Basic tools which
I used for project from statistics are- Bar Charts
- Pie charts
- Tables
Bar charts and pie charts are really useful tools for every research to show
the result in a well clear, ease and simple way. Because I used bar charts
and pie cahrts in project for showing data in a systematic way, so it need
not necessary for any observer to read all the theoretical detail, simple on
seeing the charts any body could know that what is being said.
Technological Tools
Ms- Excel
Ms-Access
Ms-Word
Above application software of Microsoft helped me a lot in making
project more interactive and productive.
27

Microsoft-Excel had a great role in my project, it created for me a

situation of you sit and get. I provided it simply all the detail of data
and in return it given me all the relevant information..
Microsoft-Access did the performance of my personal assistant who
organizes my all the details of document without disturbing them even a
single time in all the project duration.

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS

Table1: Correlation between awareness of customers about SBI bank

& their Age
NO. OF RESPONSE

AGE

25

20-25

46

25-30

34

30-35

23

35-40

21

40-45

22

45-50

24

50-60

55

60-ABOVE

28

RESPONSES
AGE GROUP

29

TABLE 2: PERCEPTION OF SBI AS A BANK

TYPE OF BANK

RESPONSES

PRIVATE

50

PUBLIC

45

PRIVATE/PUBLIC

100

DON'T KNOW

55

30

TABLE 3: RATING OF CUSTOMERS FOR SBI BANK AS A

GOOD BANK
PARAMETER

RESPONSES

EFFICIENCY

75%

INTERNET BANKING/ATMs

25%

PRODUCT RANGE

95%

NETWORK

33%

PHONE BANKING

22%

33%

22%

EFFICIENCY
75%

INTERNET
BANKING/ATMs

NETWORK
95%

PHONE BANKING

25%

TABLE

4:

MARKET

SHARES

IN

NEW

DELHI

COMPARISION TO COMPETITORS
BANK NAME

% OF SHARE
31

IN

SBI

30%

IDBI

15%

ICICI

25%

PNB

10%

HDFC

5%

HSBC

5%

OTHERS

10%

TABLE 5: FACTORS RESPONSIBLE FOR PERFORMANCE OF

SBI BANK IN NOIDA
PARAMETERS

% OF SHARE

PRODUCT

50%

ADVERTISMENT

5%

MANPOWER

25%

NET-BANKING

2%

PHONE BANKING

5%
32

INVESTMENT SCHEME

10%

NETWORK

3%

33

NET-BANKING
MANPOWER
PHONE
BANKING
INVESTMENT SCHEME
NETWORK
ADVERTISMENT

PRODUCT

60%

PERCENTAGE

50%

50%

40%
30%

25%

20%
10%

5%

2%

5%

10%

0%
% OF SHARE
PARAMETERS

34

3%

TABLE 6 : COMPARATIVE STUDY

COMPETITORS ON BASIC PARAMETERS

WITH

MAJOR

PARAMETERS/BANK
S

SBI

ICIC
I

SBI

PNB

HSB
C

CANAR
A BANK

PRODUCT

20%

15%

30%

15%

10%

10%

ADVERTISMENT

3%

45%

15%

20%

7%

10%

MANPOWER

10%

50%

2%

3%

25%

10%

NET-BANKING

3%

50%

10%

12%

8%

17%

PHONE BANKING

10%

40%

5%

5%

30%

10%

INVESTMENT
SCHEME

5%

25%

50%

10%

5%

5%

NETWORK

2%

40%

40%

5%

3%

10%

CREDIBILITY

20%

10%

40%

20%

5%

5%

35

TABLE 7: THE EFFECTIVENESS OF COMMERCIALS OF SBI

BANK
DAYS AFTER THE AD
IS SEEN

POSITIVE RESPONSE

0-5 days

100

6-10 days

67

11-15 days

43

more than 15 days

40

36

Applied Principles and Concepts

While I started to do the project the main thing which was the matter of
concern was that around what principles I have to revolve my project.
Because without having any hypothesis and objective we cannot
determine that what output or result we are expecting form the project.
37

And second thing is that having only tools and techniques for the purpose
of project is not relevant until unless we have the principals for which we
have to use those tools and techniques.
Statistical Analysis
In this segment I will show my findings in the form of graphs and charts.
All the data which I got form the market will not be disclosed over here
but extract of that in the form of information will definitely be here.
Detail:
Size of Data

: 100

Area

: New Delhi

Type of Data

: 1. Primary

Industry

: Banking

Respondent

: Customers

2. Secondary

FINANCIAL PERFORMANCE
Profit
The Operating Profit of the Bank for 2010-11 stood at Rs. 25,335.57
crores as compared to Rs. 18,320.91 crores in 2009-10 registering an
excellent growth of 38.29%.

38

The Bank has posted a Net Profit of Rs. 8,264.52 crores for 2010-11 as
compared to Rs. 9,166.05 crores in 2009-10 registering a decline of
9.84%.
While Net Interest Income recorded a growth of 37.41%, the Other
Income increased by 5.72%, Operating Expenses increased by 13.27%
attributable
to higher staff cost and other expenses.
Dividend
The Bank has maintained dividend @ Rs. 30.00 per share(300%) as paid
in the last year.
Net Interest Income
The Net Interest Income of the Bank registered a growth of 37.41% from
Rs. 23,671.44 crores in 2009-10 to Rs. 32,526.41 crores in 2010-11. This
was due to growth in interest income on advances and investments.
The gross interest income from global operations rose from Rs. 70,993.92
crores to Rs. 81,394.36 crores during the year registering a growth of
14.65%. This was mainly due to higher interest income on advances
and investments.
Interest income on advances in India registered an increase from Rs.
7,633.47 crores in 2009-10 to Rs. 56,960.97 crores in 2010-11 due to
higher volumes.

39

The average yield on advances in India decreased from 9.66% in 2009-10

to 9.56% in 2010-11. Interest income on advances at foreign offices has
grown moderately by 0.53%.
Income from resources deployed in Treasury operations in India
increased by 3.67% mainly due to higher average resources deployed and
increase in average yield. The average yield, which was 6.52% in 200910, has increased to 7.02% in 2010-11.
Total interest expenses of global operations increased from Rs. 47,322.48
crores in 2009-10 to Rs. 48,867.96 crores in 2010-11. Interest expenses
on deposits in India during 2010-11 recorded a decrease of 0.21%
compared to the previous year, whereas the average level of deposits in
India grew by 9.99%. The average cost of deposits has declined from
5.80% in 2009-10 to 5.26% in 2010-11.
Non-Interest Income
Non-interest income stood at Rs. 15,824.59 crores in 2010-11 as against
Rs. 14,968.15 crores in 2009-10 registering a growth of 5.72%. During
the year, the Bank received an income of Rs. 827.73 crores (Rs. 573.48
crores in the previous year) by way of dividends from Associate
Banks/subsidiaries and joint ventures in India and abroad.
Operating Expenses
There was an increase of 13.53% in the Staff Cost from Rs. 12,754.65
crores in 2009-10 to Rs. 14,480.17 crores in 2010-11 attributable to
40

higher gratuity and pensionprovisioning and increased staff strength. Staff

Cost included an amount of Rs. 2,473.00 crores towards additional
pension provision and Rs. 1,565.00 crores towards additional contribution
to Gratuity Fund as compared to Rs. 1,997.64 crores and Rs. 46.41 crores
respectively in the previous year. The additional pension cost in respect of
the liabilities of the earlier years amounting to Rs. 7,927.41 crores have
been charged to Reserves Account in accordance with RBI special
dispensation.
Other Operating Expenses have also registered an increase of 12.84%
mainly due to increase in expenses on rent, taxes and lighting,
advertisement & publicity, depreciation on banks properties, law charges,
postage, telegrams and telephones, repairs & maintenance to the Banks
properties,

insurance

and

miscellaneous

expenditure.

Operating

Expenses, comprising both staff cost and other operating expenses, have
registered an increase of 13.27% over the previous year.

Provisions and Contingencies

Major amounts of provisions made in 2010-11 were as under:
Rs. 646.75 crores towards provision for depreciation on investments,
excluding amortization of premium on Held to Maturity category (as

41

against Rs. 968.59 crores towards write-back for depreciation on

investments in 2009-10).
Rs. 5,709.54 crores towards Provision for Tax, excluding deferred tax
reversal of Rs. 976.82 crores (as against Rs. 6,166.63 crores in 2009-10
excluding deferred tax credit of Rs. 1,407.75 crores).
Rs. 8,792.09 crores (net of write-back) for nonperforming assets (as
against Rs. 5,147.85 crores in 2009-10).
Rs. 976.60 crores towards Standard Assets (as against Rs. 80.06 crores
in 2009-10). Including the current years provision, the total provision
held
on Standard Assets (domestic offices) amounts to Rs. 3,336.08 crores.
Reserves and Surplus
An amount of Rs. 2,479.36 crores (as against Rs. 6,381.09 crores in
2009-10) was transferred to Statutory Reserves.
An amount of Rs. 9.61 crores (as against Rs. 114.05 crores in 2009-10)
was transferred to Capital Reserve Fund.
An amount of Rs. 2,729.87 crores (as against Rs. 529.51 crores in 200910) was transferred to Other Reserve Funds.
An amount of Rs. 7,927.41 crores has been transferred from Statutory
Reserves on account of additional pension cost in respect of the
liabilities of the earlier years in accordance with RBI special
dispensation.
42

Management Discussion And Analysis

Economic Backdrop and Banking Environment
The Indian economy is back on track and has recovered smartly from the
aftermath of the global crisis of 2007-09. GDP grew by 8.5% in FY11
43

from 6.8% in FY09 and 8.0% in FY10. Strong recovery in the

agriculture sector, which rose by 6.6% in FY11 against negligible growth
(0.4%) in FY10, has been the key underlying driver of higher GDP
growth.
Industrial growth has been generally satisfactory but volatile. During
2010-11, the Index of Industrial Production (IIP) grew by 7.8% against
10.5% in the previous year though growth has ranged from 16.6% in
April 2010 to 2.6% in December 2010.
The growth rate of IIP remained above 10% in four out of twelve months,
below 5% in five months, and around 7% in three months. However,
consumer durables (20.9%), intermediate goods (8.8%) and capital goods
(9.3%) recorded higher growth than overall IIP growth in FY11, taking
manufacturing sector growth to 8.3% in FY11 against 8.8% in FY10.
The services sector, accounting for around three-fifth of GDP, grew by
9.2% in FY11 against 9.7% in FY10 largely due to moderation in
Community, Social and Personal Services, which rose by 7.0% in
FY11 against 11.8% in FY10. Nevertheless, Trade, Hotels, Transport &
Communication and Financing, Insurance, Real Estate & Business
Services registered higher growth of 10.3% (9.7% in FY10) and 9.9%
(9.2% in FY10) respectively in FY11.
With pickup in the growth momentum in developed countries,
merchandise exports rose smartly by 37.6% in FY11, while imports rose
44

by 21.6%, shrinking the trade deficit to US $104.8 bn, slightly lower than
US $109.6 bn in FY10. The forex market experienced orderly
movements and saw the Rupee move up from average Rs. 47.46 per US
dollar in 2009-10 to Rs. 45.57 per US dollar during FY11. Revival in the
domestic economy was reflected in rise in net FII inflows of US $29.4 bn
in FY11 against US $29.0 bn in FY10. During the year, Indias foreign
exchange reserves rose by US $26.4 bn to US $305.5 bn. While the
growth outlook remained robust, the year saw inflation emerge as a major
concern driven by
high food, fuel and commodity prices. After remaining in double digits
from April to June 2010, headline WPI inflation came down to 8.9% in
August 2010 and softened further to 8.2% in November 2010 but the
trend reversed in December 2010 and inflation rose to 9.4% led by
sudden spurt in prices of primary food articles and fuels. By end-March
2011, yoy WPI inflation stood at 9.02%, lower than 10.36% in March
2010.

Inflation concerns prompted RBIs tight monetary policy stance; between

20 April 2010 and 17 March 2011, RBI increased the Repo and Reverse
Repo rate seven times. During the year, the Repo Rate was raised by 175
bps from 5.0% to 6.75%, Reverse Repo rate by 225 bps from 3.50% to
5.75% and the Cash Reserve Ratio was hiked by 25 bps from 5.75% to
45

6.0%. Monetary tightening and sharp credit growth beginning from the
busy season in October 2010 saw liquidity conditions in the system
remain tight. To ease pressure on liquidity and ensure adequate credit
availability for all sectors, RBI introduced several measures including
opening second LAF window, open market operations including buyback
of government securities worth Rs. 48,000 crores and cut in SLR, initially
temporary cut by 200 bps from 25% to 23% followed by a permanent
reduction of 100 bps to 24% in December 2010.
All these measures supported bank lending which is reflected in the
21.5% rise in ASCB credit despite muted growth of 15.9% in deposits.
Reflecting policy transmission, interest rates on both deposits and credit
hardened during the year. While PLR ofmajor banks rose by 200 bps
from 11.0-12.0% in FY10 to 13.0-14.0% in FY11, rates for 1-3 year
deposits rose from 6.0-7.50% to 7.75-9.50% in the same period. Another
important development during the year was introduction of the Base Rate
system from July 2010, bringing greater transparency in interest rates.
Initially, base rate of major banks was in the range of 7.5-8.25% but
following monetary tightening by RBI, this rose to 8.25-9.50% by March
2011.
Latest projections by IMF show that the global economy has grown by
5% in 2010, one of the highest in recent years. However, while growth in
emerging market economies remains strong and growth in the US and the
46

Euro area is gaining momentum, the sharp increase in oil prices as a

result of the turmoil in the Middle East and North Africa is adding
uncertainty to the pace of global recovery. Further, coming on top of
already elevated food and other commodity prices, the spike in oil prices
has engendered inflation concerns. With growth worries fading, the focus
has shifted to inflation and policy tightening. So going forward, countries
will aim to achieve higher growth without compromising on price and
financial stability thus balancing inflation expectations and maintaining
growth momentum.

ECONOMICALLY empowering, i.e. access to inexpensive credit and

other micro-finance services, including savings and insurance, India's
rural population will have a significant impact on India's economic
growth. Economic empowerment is defined here as. The modern banking
system has failed to deliver inexpensive credit to Indias 600,000 villages
- despite several expensive attempts to do so. Do we need to rethink the
appropriate institutional structure for rural banking in India? The
problems of widespread poverty, growing inequality, rapid population
growth and rising unemployment all find their origins in the stagnation of
economic life in rural areas.
Since the days of the Rural Credit Survey Committee (1954), India has
come a long way in its search for an appropriate rural banking set-up.
47

Though there has been some improvement, the problem remains. There
has been tremendous progress in quantitative terms but quality has
suffered, progress has been slow and halting and significant regional
disparities persist. Stagnation in rural banking is noticed in the north and
northeastern regions.

Balance Sheet

Balance Sheet of State Bank of India

Capital and Liabilities:

Total Share Capital
Equity Share Capital
Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other Liabilities &
Provisions
Total Liabilities

------------------- in Rs. Cr. -------------------

Mar '15

Mar '14

Mar '13

Mar '12

Mar '11

12 mths

12 mths

12 mths

12 mths

12 mths

746.57
746.57
127,691.65
128,438.22
1,576,793.2
4
205,150.29
1,781,943.5
3
137,698.05

746.57
684.03
671.04
635.00
746.57
684.03
671.04
635.00
117,535.68 98,199.65 83,280.16 64,351.04
118,282.25 98,883.68 83,951.20 64,986.04
1,394,408.5 1,202,739.5 1,043,647.3
933,932.81
1
7
6
183,130.88 169,182.71 127,005.57 119,568.96
1,577,539.3 1,371,922.2 1,170,652.9 1,053,501.7
9
8
3
7
96,412.96

95,455.07

80,915.09 105,248.39

2,048,079.8 1,792,234.6 1,566,261.0 1,335,519.2 1,223,736.2

0
0
3
2
0
Mar '15
Mar '14
Mar '13
Mar '12
Mar '11
12 mths

12 mths

48

12 mths

12 mths

12 mths

Assets
Cash & Balances with
RBI
Balance with Banks,
Money at Call
Advances
Investments
Gross Block
Net Block
Capital Work In Progress
Other Assets
Total Assets
Contingent Liabilities
Book Value (Rs)

115,883.84

84,955.66

65,830.41

54,075.94

94,395.50

58,977.46

47,593.97

48,989.75

43,087.23

28,478.65

1,300,026.3 1,209,828.7 1,045,616.5

867,578.89 756,719.45
9
2
5
495,027.40 398,308.19 350,927.27 312,197.61 295,600.57
9,329.16
8,002.16
6,595.71
5,133.87
4,431.96
9,329.16
8,002.16
6,595.71
5,133.87
4,431.96
0.00
0.00
409.31
332.68
332.23
68,835.55 43,545.90 47,892.03 53,113.02 43,777.85
2,048,079.8 1,792,234.6 1,566,261.0 1,335,519.2 1,223,736.2
0
0
3
4
1
1,093,422.5 1,091,358.3
993,018.45 899,565.18 790,389.59
1
7
172.04
1,584.34
1,445.60
1,251.05
1,023.40

Profit & Loss account of State Bank of

India

------------------- in Rs. Cr. -------------------

Mar 15

Mar 15

Mar 14

Mar 13

Mar 12

12 mths

12 mths

12 mths

12 mths

12 mths

INCOME
Interest / Discount on Advances /
112,343.91 112,343.91 102,484.10 90,537.10 81,077.70
Bills
Income from Investments
37,087.77 37,087.77 31,941.87 27,200.63 23,949.14
Interest on Balance with RBI and
505.12
505.12
409.31
545.14
350.47
Other Inter-Bank funds
Others
2,460.27 2,460.27 1,515.52 1,374.23 1,144.14
152,397.0
Total Interest Earned
152,397.07 136,350.80 119,657.10 106,521.45
7
Other Income
22,575.89 22,575.89 18,552.92 16,034.84 14,351.45
174,972.9
Total Income
174,972.96 154,903.72 135,691.94 120,872.90
6
EXPENDITURE
Interest Expended
97,381.82 97,381.82 87,068.63 75,325.80 63,230.37
Payments to and Provisions for
23,537.07 23,537.07 22,504.28 18,380.90 16,974.04
Employees
Depreciation
1,116.49 1,116.49 1,333.94 1,139.61 1,007.17
49

Operating Expenses (excludes

Employee Cost & Depreciation)
Total Operating Expenses
Provision Towards Income Tax
Provision Towards Deferred Tax
Provision Towards Other Taxes
Other Provisions and
Contingencies
Total Provisions and
Contingencies
Total Expenditure
Net Profit / Loss for The Year
Net Profit / Loss After EI & Prior
Year Items
Profit / Loss Brought Forward
Transferred on Amalgamation
Total Profit / Loss available for
Appropriations
APPROPRIATIONS
Transfer To / From Statutory
Reserve
Transfer To / From Capital
Reserve
Transfer To / From Revenue And
Other Reserves
Dividend and Dividend Tax for
The Previous Year
Equity Share Dividend
Tax On Dividend
Balance Carried Over To Balance
Sheet
Total Appropriations
OTHER INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.)
Diluted EPS (Rs.)
DIVIDEND PERCENTAGE
Equity Dividend Rate (%)

14,024.08 14,024.08 11,887.63

9,763.91

8,087.78

38,677.64 38,677.64 35,725.85 29,284.42 26,068.99

6,689.95 6,689.95 4,227.47 5,951.06 6,335.37
-477.56
-477.56 1,055.25
-107.97
455.93
0.00
0.00
0.00
2.82
6.00
19,599.54 19,599.54 15,935.35 11,130.83 13,068.95
25,811.93 25,811.93 21,218.07 16,976.74 19,866.25
161,871.3
161,871.39 144,012.55 121,586.96 109,165.61
9
13,101.57 13,101.57 10,891.17 14,104.98 11,707.29
13,101.57 13,101.57 10,891.17 14,104.98 11,707.29
0.32
0.00

0.32
0.00

0.34
0.00

0.34
0.00

0.34
5.71

13,101.89 13,101.89 10,891.51 14,105.32 11,713.34

4,029.08

4,029.08

3,339.62

4,417.86

3,516.98

0.00

0.00

0.00

19.17

14.38

5,994.56

5,994.56

5,013.40

6,453.26

5,536.50

0.00

0.00

0.01

0.00

0.00

2,557.28
520.65

2,557.28
520.65

2,239.71
298.45

2,838.74
375.95

2,348.66
296.49

0.32

0.32

0.32

0.34

0.34

13,101.89 13,101.89 10,891.51 14,105.32 11,713.34

18.00
18.00

18.00
18.00

157.00
157.00

210.00
210.00

184.00
184.00

350.00

350.00

300.00

415.00

350.00

Quarterly Results of State Bank of India

50

------------------- in Rs. Cr. -------------------

Dec '15

Sep '15

Jun '15

Mar '15

Dec '14

Interest Earned
(a) Int. /Disc. on Adv/Bills
(b) Income on Investment
(c) Int. on balances With RBI
(d) Others
Other Income

28,860.
28,981.65 28,581.66 28,268.54 28,646.37
22
10,712.
10,564.66 10,019.41 9,982.75 9,484.73
00
101.85
179.93
234.27
158.90
151.51
879.43
931.32
807.55 1,690.97
263.57
6,177.5
6,197.25 5,087.98 8,515.25 5,237.80
1

EXPENDITURE
26,947.
26,405.01 25,910.86 25,389.40 24,769.54
03
6,122.5
Employees Cost
6,142.09 5,906.38 6,566.54 5,842.03
7
4,063.4
Other Expenses
4,041.82 3,711.53 4,251.11 3,877.94
9
Depreciation
-----Operating Profit before Provisions 9,597.9
10,265.89 9,202.10 12,409.36 9,294.47
and contingencies
2
7,949.3
Provisions And Contingencies
4,360.60 3,999.73 6,592.91 5,234.91
8
Exceptional Items
-----1,648.5
P/L Before Tax
5,905.29 5,202.37 5,816.45 4,059.56
4
Tax
533.20 2,026.22 1,509.94 2,074.43 1,149.50
P/L After Tax from Ordinary
1,115.3
3,879.07 3,692.43 3,742.02 2,910.06
Activities
4
Prior Year Adjustments
-----Extra Ordinary Items
-----1,115.3
Net Profit/(Loss) For the Period
3,879.07 3,692.43 3,742.02 2,910.06
4
Equity Share Capital
776.28
776.28
756.62
746.57
746.57
Reserves Excluding Revaluation
-----Reserves
Equity Dividend Rate (%)
-----ANALYTICAL RATIOS
a) % of Share by Govt.
60.18
60.18
59.15
58.60
58.60
b) Capital Adequacy Ratio - Basel
------I
c) Capital Adequacy Ratio - Basel
-13.19
12.98
12.79
12.54
-II
Interest Expended

EPS Before Extra Ordinary

Basic EPS

1.43

5.08

4.88

5.01

3.90

Diluted EPS

1.43

5.08

4.88

5.01

3.90

51

EPS After Extra Ordinary

Basic EPS

1.43

5.08

4.88

5.01

3.90

Diluted EPS

1.43

5.08

4.88

5.01

3.90

NPA Ratios :
i) Gross NPA

72,791.
56,834.28 56,420.77 56,725.34 61,991.45
73

ii) Net NPA

40,249.
28,591.96 28,669.14 27,590.58 34,468.74
12

i) % of Gross NPA

5.10

4.15

4.29

4.25

4.90

ii) % of Net NPA

2.89

2.14

2.24

2.12

2.80

Return on Assets %

0.21

0.75

0.72

0.76

0.62

No Of Shares (Crores)

--

309.11

309.11

309.11

309.11

Share Holding (%)

--

39.82

40.85

41.40

41.40

- Number of shares (Crores)

--

--

--

--

--

- Per. of shares (as a % of the total

sh. of prom. and promoter group)

--

--

--

--

--

--

--

--

--

--

--

467.16

447.51

437.46

437.46

--

100.00

100.00

100.00

100.00

--

60.18

59.15

58.60

58.60

Public Share Holding

Promoters and Promoter Group

Shareholding
a) Pledged/Encumbered

- Per. of shares (as a % of the total

Share Cap. of the company)
b) Non-encumbered
- Number of shares (Crores)
- Per. of shares (as a % of the total
sh. of prom. and promoter group)
- Per. of shares (as a % of the total
Share Cap. of the company)

Quarterly Results of State Bank of India

Dec '15
52

------------------- in Rs. Cr. -------------------

Sep '15

Jun '15

Mar '15

Dec '14

Interest Earned
(a) Int. /Disc. on Adv/Bills
(b) Income on Investment
(c) Int. on balances With RBI
(d) Others
Other Income
EXPENDITURE
Interest Expended
Employees Cost
Other Expenses
Depreciation
Operating Profit before Provisions
and contingencies
Provisions And Contingencies
Exceptional Items
P/L Before Tax
Tax
P/L After Tax from Ordinary
Activities
Prior Year Adjustments
Extra Ordinary Items
Net Profit/(Loss) For the Period
Equity Share Capital
Reserves Excluding Revaluation
Reserves
Equity Dividend Rate (%)
ANALYTICAL RATIOS
a) % of Share by Govt.
b) Capital Adequacy Ratio - Basel
-I
c) Capital Adequacy Ratio - Basel
-II
EPS Before Extra Ordinary
Basic EPS
Diluted EPS
EPS After Extra Ordinary
Basic EPS
Diluted EPS

28,860.2
28,981.65 28,581.66 28,268.54 28,646.37
2
10,712.0
10,564.66 10,019.41 9,982.75 9,484.73
0
101.85
179.93
234.27
158.90
151.51
879.43
931.32
807.55 1,690.97
263.57
6,177.51 6,197.25 5,087.98 8,515.25 5,237.80
26,947.0
26,405.01 25,910.86 25,389.40 24,769.54
3
6,122.57 6,142.09 5,906.38 6,566.54 5,842.03
4,063.49 4,041.82 3,711.53 4,251.11 3,877.94
-----9,597.92 10,265.89

9,202.10 12,409.36

9,294.47

7,949.38
-1,648.54
533.20

4,360.60
-5,905.29
2,026.22

3,999.73
-5,202.37
1,509.94

6,592.91
-5,816.45
2,074.43

5,234.91
-4,059.56
1,149.50

1,115.34

3,879.07

3,692.43

3,742.02

2,910.06

--1,115.34
776.28

--3,879.07
776.28

--3,692.43
756.62

--3,742.02
746.57

--2,910.06
746.57

--

--

--

--

--

--

--

--

--

--

60.18

60.18

59.15

58.60

58.60

--

--

--

--

--

--

13.19

12.98

12.79

12.54

1.43
1.43

5.08
5.08

4.88
4.88

5.01
5.01

3.90
3.90

1.43

5.08

4.88

5.01

3.90

1.43

5.08

4.88

5.01

3.90

53

NPA Ratios :
i) Gross NPA

72,791.7
56,834.28 56,420.77 56,725.34 61,991.45
3

ii) Net NPA

40,249.1
28,591.96 28,669.14 27,590.58 34,468.74
2

i) % of Gross NPA

5.10

4.15

4.29

4.25

4.90

ii) % of Net NPA

2.89

2.14

2.24

2.12

2.80

Return on Assets %

0.21

0.75

0.72

0.76

0.62

No Of Shares (Crores)

--

309.11

309.11

309.11

309.11

Share Holding (%)

--

39.82

40.85

41.40

41.40

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

467.16

447.51

437.46

437.46

--

100.00

100.00

100.00

100.00

--

60.18

59.15

58.60

58.60

Public Share Holding

Promoters and Promoter Group

Shareholding
a) Pledged/Encumbered
- Number of shares (Crores)
- Per. of shares (as a % of the total
sh. of prom. and promoter group)
- Per. of shares (as a % of the total
Share Cap. of the company)
b) Non-encumbered
- Number of shares (Crores)
- Per. of shares (as a % of the total
sh. of prom. and promoter group)
- Per. of shares (as a % of the total
Share Cap. of the company)

54

FINDINGS
1. The credibility of SBI bank is good in comparison to its
competitors

as GOI (Government Of India) is a major share

holder in the company.

2. SBI bank has potential a tapped market in NEW DELHI in region

and hence has an opportunity for growth.

3. The products of SBI bank have good credibility in the region

compare to its competitors.

4. The advertisement of the bank was very effective from the first day
of its airing till the fifth day and there after it starts declining.

55

5. The initial balance for A/C opening is Rs, 1050/- and thats why
people are reluctant in opening the same.

CONCLUSIONS AND RECOMMENDATIONS

Conclusions
1. Consumers of NEW DELHI have good awareness level about SBI
bank as well as about its services and products.
2. The advertising campaign has successfully been able to increase
the market share of SBI in NEW DELHI.
3. The modern days technology like internet banking, phone
banking, used by SBI bank for providing banking services has sent
positive signals in the mind of consumes.
4. The network of SBI in NEW DELHI is lagging behind a little than
its competitors like ICICI bank and HDFC bank.
5. It can be distilled from data that SBI bank has good market share as
compared to its competitors considering the amount of resources
deployed by them in the market.

56

A personal view on reforms and developments in the Indian Banking

Sector is stated below.
The reduction in SLR and CRR has been effective in the sense that the
lendable resources of banks have increased. The anticlimax is about the
current recession in the economy and decreasing need of investments by
the corporate sector. The CRAR requirements are necessary for financial
soundness of Indian banks; also; a need to assign risk weight age to
government securities seems to be coming up due to increasing
investments of banks portfolios.
The NPA trend has been fortunately declining in the recent years, initially
the NPAs were amounting to total of 16 %, and however banks should
note that ever greening of loans would deprove the circumstances in the
long run; the asset quality is the determinance of banks profitability
today. The present evaluation process of banks states requires around 18
officials for quality inspection, the bureaucracy involved can reduced
only by way of better bank supervision. The Disclosure norms shall avoid
situations like in case of South East Asian Crisis; with this respect, RBI
proves to be a quite proactive institution.
Globalization has but lead to the liberalization of the Indian Banking
sector; like the other sectors opened up, today, the Indian banks need to

57

learn much more from competition; customers and not advances and
customer service is the call for the day.
The DRT Act supersedes all acts but the SICA which clearly states that
companies can very easily stall recovery procedures. Its a fact in our
country that for every law made there is one more to escape from it.
However, the conceptualization of this structure needs to be
acknowledged.
Increasing risks and imprudent liability management constitute to asset
liability mismatch. Complacent behavior of Indian banks with this
context has lead to ALM reforms. This shall positively improve and get
bankers alert. The ALM framework if correctly implemented shall prove
useful.
Reduction of government stake seems to be a good decision of RBI, but
on deeper analysis, the control strongly remains with the government and
it is a truth that bureaucracy has become a side business. We still need to
see what happens next!
The corporate can now have a good deal with loans and advances; the
interest rate deregulation has been in line with the international standards.
The current trend of falling rates shall indeed give the corporate
customers fair access with better services.

58

VRS was a government decision and about 11 % of the employees

retired. It was no form of a structural change but is a very effective tool to
improve efficiency of the Indian PSBs. I think a better plan would have
been of investments in technology partially and then a VRS. Currently,
lots of banks are facing problems of inadequate staffing; a good
manpower planning in advance would not have lead to the current
problem.
About universal banking, due to increasing competition banks need to
strive for customers, thus, offering all at the same desks for corporate as
well as individuals i.e. retail banking is required; public sector needs to
have a pace in this arena. A merger to improve the overall health, reach
and customer base, has given a rise to the trend of mergers globally. The
recent merger of ICICI and BoM proves that customer base has to
develop for sustainability. Mergers constitute as a cheaper and a quicker
form of expansion and Indian banks should explore such an opportunity.
The opening of insurance has given banks a new opportunity to make the
best out of their resources; how much advantage do our PSBs make is yet
to see.
As far as rural banks are concerned, GOI has to give personnel better
career prospects in order to get them working, better products and
convenience and safety has to be guaranteed by the bank. Personalized
service in a crude form will help.
59

Lastly, technological upgradation will be what will lead to customer

retention on the grounds of accessibility and convenience.

Recommendations
1. Since there is only two branch of SBI bank and only three atms in
NEW DELHI, so it is necessary for SBI bank to open more
branches and install more atms to serve the vast market of NEW
DELHI especially.
2. More resources should be allocated in the market of NEW DELHI
as there is big untapped market in NEW DELHI, so it becomes
necessary for SBI bank for taking an edge over the competitors.
3. A short advertising campaign in NEW DELHI has produced good
results in a short span of times, so to gain long term benefits is very
necessary for SBI bank to carry on this campaign with more
intensity.
4. Besides opening more branches it should also look for opening
some extension counter in Kutub near meherauli and one in
Khanpur.
60

5. As Government is the majority share holder in the shares of SBI

bank, which makes this bank more reliable than other private
banks, this thing can be used in the favour of SBI bank by making
people aware about this fact and winning their faith.

Appendix1:
Questionnaire
NAME
AGE.

SEX:

MALE/FEMALE
ADDRESS:

CITYPIN
CODE....
CONTACT NO.

1. DO YOU KNOW ABOUT SBI BANK?

YES

NO

61

2. SBI BANK IS A
PRIVATE BANK

PRIVATE/PUBLIC

BANK
PUBLIC BANK

DONT KNOW

3. RANK THE SBI BANK ON THE FOLLOWEING FEATURES

(RANK 1 FOR BEST AND 5 FOR WORSE ON 1 TO 5 SCALE)
EFFICENCY

MANPOWER

INTERNET BANKING/ATMs

NETWORK

PRODUCT RANGE

PHONE BANKING

4. YOU WOULD LIKE TO BE A CUSTOMER OF BANK BECAUSE

.
5. YOU WOULD NOT LIKE TO BE A CUSTOMER BANK
BECAUSE..
6. NAME THE BANK WHICH COMES IN YOUR MIND AT VERY
FIRST AND WHY?

62


..
7. DO YOU THINK SBI BANK IS A SAFE PLACE FOR YOUR
MONEY?
YES

NO

8. DO YOU THINK SBI BANK NEED MORE ADVERTISMENT?

YES

NO

9. YOUR LEVEL OF SATISFACTION WITH SBI BANKVERY SATISFIED

SATISFIED NORMAL DISSATISFIED

VERY DISAT.
10. IF YOU WILL HAVE OPTION AGAINEST SBI BANK YOU WILL
GO FOR
IDBI

PNB

ICICI

OTHER

11. DO YOU REMEMBER THE COMMERCIAL OF SBI BANK?

YES

NO

12. WHEN DID YOU LAST SEE THE ADVERTISEMENT OF SBI

BANK?
63

0-5 DAYS BACK

6-10 DAYS

BACK
11-15 DAYS BACK

MORE

THAN 15 DAYS BACK

13. DO YOU KNOW WHERE IS THE BRANCH OF SBI LOCATED
IN NEW DELHI?

14. SBI BANK IN NEW DELHI IS EFFECTIVE BECAUSE

.
15. SBI BANK IN NEW DELHI IS NOT EFFECTIVE BECAUSE

16. SBI BANK IS A GOOD BANK FORSERVICE PEOPLE

BUSINESS

PERSON

64

POLITICIANS

GENERAL PUBLIC

ALL OF ABOVE

Appendix 2: Reference
www.statebankofindia.com

Material

www.google.com
R.S. Sharma, Business statistics, First India Print, India, 2004,
Aaker Kumar and Day, Marketing research, 6 th Ed.,john willy &
sons,1997.
ICFAI Journal of Banking
The Economics times
The Times of India

65

66