UNIVERSITY OF MUMBAI

RAYAT SHIKSHAN SANSTH’S

KARMAVEER BHAURAO PATIL COLLEGE

VASHI, NAVI MUMBAI

COLLEGE CODE-33

PROJECT REPORT

ON

“GOLD INVESTENT IN SBI”

SUBMITED BY

AKSHARI KADAM
PROJECT GUIDE

SNEHA MORE

IN POARTIAL FULLFILLMENT FOR THE COURSE OF

BACHELOR OF MANAGEMENT STUDIES (B.M.S.)

T.Y.B.M.S.(SEMESTER V)
ACADEMIC YEAR- 2014-2015.
 ACKNOWLEDGEMENT
It gives me pleasure to submit this project to the University of Mumbai as a part
of curriculum of my BMS course.

I take immense pleasure in thanking prof. SNEHA MORE for their valuable
assistance in completion of this project.

I take this opportunity to express my sincere gratitude to Respected

Prof.Bhosle (BMSCo-ordinator) of Karmaveer Bhaurao Patil College,
who simultaneously is my project guide also, without whose guidance, inspiration and
motivation; I could not have completed this project successfully. I take immense
pleasure in thanking them for their valuable assistance in completion of this project.

Finally, yet importantly, I would like to express my heartfelt thanks to my beloved

parents for their blessings, my friends/classmates for their help and wishes for the
successful completion of this project.

(AKSHARI KADAM)
 DECLARATION

I AKSHARI KADAM student of KARMAVEER BHAURAO PATIL COLLEGE,

studying in B.M.S. (Semester V) hereby declare that I have completed this project
report on “GOLD INVESTMENT IN SBI” And has not been submitted to any other
university or institute of award of any degree. Diploma etc. the information is submitted
to me is true and original to the best of my knowledge

Date:

Place- Vashi, Navi Mumbai.

(AKSHARI KADAM)
 RAYAT SHIKSHAN SANSTHA’S

KARMAVEER BHAURAO PATI COLLEGE

VASHI, NAVI MUMBAI 400703.

CERTIFICATE

This is to certify that AKSHARI KADAM student of B.M.S. Semester V has completed
his project on “GOLD INVESTMENT IN SBI” and has submitted a satisfactory report
under the guide of SNEHA MORE in the partial fulfillment of B.M.S course of University
of Mumbai in the academic year 2014-2015.

Project guide Coordinator Principal

University Examiner
Executive Summary:
 INDEX:
CHAPTER PARTICULARS PAGE NO.

1. INTRODUCTION TO THE STUDY:

1.1-INTRODUCTION 08
1.2-OBJECTIVES OF THE STUDY 09
1.3-NEEDS/IMPORTANCE OF THE STUDY 09
1.4RESEARCH METHODOLOGY 10 &11

2. PROFILE OF THE COMPANY:

2.1- COMPANY HISTROY 13-15
2.2- INTRODUCTION OF ORGANISATION 16-21
22-23
2.3- COMPANY PROFILE
23-24
2.4- EXAPANSION PLAN 25-27
2.5-FESTIV OCCATIONS & IMPORTAN DAYS

3. FESTIVE
MARKETINGOCCASION AND IMPORTANT DAYS
STRATEGY;
3.1- MARKETING STRATEGY OF MONGINS 29-31
3.2- MARKETING MIX OF SBI 32-41
3.3- SWOT ANALYASIS 42-44
FESTIVE OCCASION AND IMPORTANT DAYS
3.4- LOGISTIC SYSTEM AND ORDERING 45-46
SYSTEM 47-48
3.5- TRAINING SECTION 49-50
3.5- COMPITITORES 51-54
3.6-UNIQC APPROCHES 55-59
4. 3.7-
DATAFRNCHAIES
ANALYSIS & DATA INTERPRETATION:
60 TO 69

5. CONCLUSION:
70

BIBLIOGRAPHY 71
ANNEXURE 72
73-74
QUESTIONNAIRE
CHAPTER 1- INTRODUCTION OF THE STUDY:
 1.1- Introduction:

Why Gold?

 Store of Value
• A Safe Haven

• Hd i C D l i Hedge against Currency Devaluation

• An Effective portfolio diversifier

• Gold as an Asset
World gold council says,”about50% of indias 1.2 billion population is below 25years of
age. Going by numbers , it is estimated that over the next dacated, every year there
would be about 1.5 coers weddings in the country.and since gold is a integral part of
most indian weddings, this it self will creat and additional demand of about 500 TON.
of gold annully, the report said”.

And this over and abov and eastimated 500 ton of gold that would be transfered
between the families involved in each weddings.
 1.2 Research objectives

1. To know the gold investments plan of SBI BANK

2. To know the how the gold is become as an asset

3. To create awareness’ for investment on gold.

4. To increase the income level of the people

5. To study on the gold investment police.

6. To find out the services that other bank gives to their customer.

7. To find out the customer awareness on booming Advance Product market and

8. To find out the using patterns of the peopleTo make the customer aware of the

benefits of the product.

 1.3- Needs & Importance Of The Study

1. This project helps the SBI to capturer the market once again.

2. This project gives best solution for improve the quality of there products & help
them to launch the new product also.
3. My project gives the information about the SBI’s competitors.
4. This project help to the SBI to find out how many customers are brand loyal with
SBI.
 1.4- Advantages: SBI-Gold:

Cost of Investing is much lower Cost of Investing is much lower

• Offer greater transparency to the investor

• Offer small denominations to invest in Offer small denominations to invest in

• Tax Efficiency- LTCG after 1 Yr

• No Wealth Tax No Wealth Tax

 1.6-Research Methodology

1. Research Design:

A research design is a pattern or an outline of a research project’s working. It is a statement of

only the essential element of a study, those that provide the basic guidelines for the details of

the project. It comprises a series of prior decision that taken together provide master plans for

executing a research projects.

2. Types of research:

I done the experimental research.

In experimental research I done the Qualitative Research for the

projectwork.

3. methods of data collecting:

 Primary Source:

The primary data is collected using sampling method and by survey using questionnaire.

 Secondary Source:

Secondary data includes information regarding present market scenario, Information regarding

Mutual Funds and competitors are collected by internet, Magazines and Newspaper and books.
4. Sample Planning:

 Sample Size: 100 units.

 Sample Extent: Vashi & Nerul areas.

5. Data collection method:

 I have used survey method to collect the data.

 Questionnaire plan: I have used structured for gathering the required data

through contacting respondent personally

6. Data analysis:
I done the data analysis by the help of pie chart, graph & tabulation form.
 CHAPTER-2
COMPANYPROFILE

COMPANY OVERVIEW:-

State Bank of India (SBI) is a multinational banking and financial services company
based in India. It is a government-owned corporation with its headquarters in Mumbai,
Maharashtra. As of December 2013, it had assets of US$388 billion and 17,000
branches, including 190 foreign offices, making it the largest banking and financial
services company in India by assets. State Bank of India is one of the Big Four banks of
India, along with ICICI Bank, Punjab National Bank and Bank of Baroda.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 presidencies banks—Bank of
Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became
the State Bank of India. Government of India owned the Imperial Bank of India in 1955,
with 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.

History of SBI:-

The roots of the State Bank of India lie in the first decade of the 19th century, when
the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June
1806. The Bank of Bengal was one of three Presidency banks, the other two being
the Bank of Bombay (incorporated on 15 April 1840) and the Bank of
Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as
joint and were the result of royal charters. These three banks received the exclusive
right to issue paper currency till 1861 when, with the Paper Currency Act, the right was
taken over by the Government of India. The Presidency banks amalgamated on 27
January 1921, and the re-organized banking entity took as its name Imperial Bank of
India. The Imperial Bank of India remained a joint stock company but without
Government participation.
 Seal of Imperial Bank of India

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of
India, which is India's central bank, acquired a controlling interest in the Imperial Bank of
India. On 1 July 1955, the Imperial Bank of India became the State Bank of India. In
2008, the government of India acquired the Reserve Bank of India's stake in SBI so as
to remove any conflict of interest because the RBI is the country's banking regulatory
authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which
made eight state banks associates of SBI. A process of consolidation began on 13
September 2008, when the State Bank of Saurashtra merged with SBI.

SBI has acquired local banks in rescues. The first was the Bank of Behar (est. 1911),
which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired
National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975,
SBI acquired KrishnaramBaldeo Bank, which had been established in 1916 in Gwalior
State, under the patronage of Maharaja MadhoRaoScindia. The bank had been
the DukanPichadi, a small moneylender, owned by the Maharaja. The new bank's first
manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin
in Kerala, which had 120 branches. SBI was the acquirer as its affiliate, the State Bank
of Travancore, already had an extensive network in Kerala. The State Bank of India and
all its associate banks are identified by the same blue keyhole logo. The State Bank of
India wordmark usually has one standard typeface, but also utilises other typefaces.

On October 7, 2013, Arundhati Bhattacharya became the first woman to be appointed

Chairperson of the bank.

Group Photograph of Central Board (1921)

BUSINESS OF SBI:-

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. 1Lakh 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 woolens, 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.
 Main Branch of SBI in Mumbai.

Operations:-

SBI provides a range of banking products through its network of branches in India and
overseas, including products aimed at non-resident Indians (NRIs). SBI has 14 regional
hubs and 57 Zonal Offices that are located at important cities throughout India.

Domestic presence:-

SBI had 14,816 branches in India, as on 31 March 2013, of which 9,851 (66%) were in
Rural and Semi-urban areas. In the financial year 2012-13, its revenue was INR
200,560 Crores (US$ 36.9 billion), out of which domestic operations contributed to
95.35% of revenue. Similarly, domestic operations contributed to 88.37% of total profits
for the same financial year.

International presence:-

As of 28 June 2013, the bank had 180 overseas offices spread over 34 countries. It has
branches of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong
Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat,
Dubai, 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.

The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven
branches, four in the Toronto area and three in the Vancouver area.

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

bank: State Bank of India (Mauritius). SBI (Mauritius) has 15 branches in major
cities/towns of the country including Rodrigues.

In 1982, the bank established a subsidiary, State Bank of India (California), which now
has ten branches – nine branches in the state of 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 Israeli branch of the State Bank of India located in Ramat Gan

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.
Associate banks:-

SBI has five associate banks; all use the State Bank of India logo, which is a blue circle,
and all 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
 State Bank of India

Earlier SBI had seven associate banks, all of which had belonged to princely states until
the government nationalised them between October 1959 and May 1960. In tune with
the first Five Year Plan, which prioritised the development of rural India, the government
integrated these banks into 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 the group's operations.

The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven
to six. Then on 19 June 2009 the SBI board approved the absorption of State Bank of
Indore. 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
branches. Also, following the acquisition, SBI's total assets will inch very close to the
10 trillion mark (10 billion long scale). The total assets of SBI and the State Bank of
Indore stood at 9,981,190 million as of 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

Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

 SBI Capital Markets Ltd

 SBI Funds Management Pvt Ltd
 SBI Factors & Commercial Services Pvt Ltd
 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 SBI DFHI Ltd
 SBI Life Insurance Company Limited
 SBI General Insurance

In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of
the remaining capital), to form a joint venture life insurance company named SBI Life
Insurance company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was
founded with its headquarters in Mumbai.

Other SBI service points

SBI has 27,000+ ATMs and SBI group (including associate banks) has 32,752
ATMs. SBI has become the first bank to install an ATM at Drass in the Jammu &
Kashmir Kargil region. This was the Bank's 27,032nd ATM on 27 July 2012.

Logo and slogan

 The logo of the State Bank of India is a blue circle with a small cut in the bottom
that depicts perfection and the small man the common man - being the center of
the bank's business. The logo came from National Institute of Design(NID),
Ahmedabad and it was inspired by Kankaria Lake, Ahmedabad.
 Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A
BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE
NATION BANKS ON US"
Employee

SBI is one of the largest employers in the country having 228,296 employees as on 31
March 2013, out of which there were 46,833 female employees (21%) and 2,402
disabled employees (1%). On the same date, SBI had 43,550 Schedule Caste (19%)
and 16,764 Schedule Tribe (7%) employee. The percentage of Officers, Assistants and
Sub-staff was 35%, 48% and 17% respectively on the same date.
Hiring drive: The bank hired 20,682 Assistants in FY 2012-13, from over 3 million
applicants, for expansion of the branch network and to mitigate staff shortage,
particularly at rural and semi-urban branches. In the same year, it recruited 847
probationary officers from around 1.7 million candidates who applied for an officer
position.
Staff productivity: As per its Annual Report for FY 2012-13, each employee contributed
to revenues of INR 94.4 million and net profit of INR 0.65 million.

Recent awards and recognitions

 SBI was ranked as the top bank in India based on tier 1 capital by The
Banker magazine in a 2014 ranking.
 SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest
corporations for the year 2012.
 SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's
Top Banks 2013'.
 State Bank of India won three IDRBT Banking Technology Excellence Awards
2013 for “Electronic Payment Systems”, “Best use of technology for Financial
Inclusion”, and “Customer Management & Business Intelligence” in the large
bank category.
 SBI won National Award for its performance in the implementation of Prime
Minister’s Employment Generation Programme (PMEGP) scheme for the year
2012.
 Best Online Banking Award, Best Customer Initiative Award & Best Risk
Management Award (Runner Up) by IBA Banking Technology Awards 2010
 SKOCH Award 2010 for Virtual corporation Category for its e-payment solution
 SBI was the only bank featured in the "top 10 brands of India" list in an annual
survey conducted by Brand Finance and The Economic Times in 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.
 SBI was named the 29th most reputed company in the world according
to Forbes 2009 rankings
 Most Preferred Bank & Most preferred Home loan provider by CNBC
 Visionaries of Financial Inclusion By FINO
 Technology Bank of the Year by IBA Banking Technology Awards
 SBI was 11th most trusted brand in India as per the Brand Trust Report 2010.
 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
 DIFFERENT PRODUCTS OF SBI:

DEPOSIT LOANS CARDS DIFFERENT

CREDIT CARDS
 Savings Account  Home  Consumer  SBI
Loans Cards International
cards

 Life Plus Senior  Loan  Credit Card  SBI Gold

Citizens Savings Against cards
Account Property

 Fixed Deposits  Personal  Travel Card  SBI Gold

Loans Master
cards

 SecurityDeposits  Car Loan  Debit Cards  Your City

Your Cards
 Recurring  Loans  Commercial
Deposits against Cards
Securities

 Tax-Saver Fixed  Two  Corporate  Partnership

Deposit Wheeler Cards Cards

 Salary Account  Pre-  Prepaid Card

approved
Loans

 Advantage Woman  Retail  Purchase  SBI

Savings Account Asset Card Employee
 Rural Savings  Farmer  Distribution Cards
Account Finance Cards

 People's Savings  Business  Business  SBI

Account Installmen Card Advantage
t Cards
Loans

 Freedom Savings  Flexi Cash  Merchant

Account Services
 STRUCTURE & FEATURES OF SBI-GOLD:

• SBI GETS will have underlying underlying investment investment in Physical gold

• Minimum Amount of Investment -: Rs. 5000 and in multiples of Re. 1 thereafter

• One unit of SBIGETS will represent approximately One gram of Gold

• The units will be listed on NSE and likely to closely track spot Gold prices
Celebrate this Akshaya Tritiya with SBI Gold Fund:
Akshaya Tritiya, the day of eternal prosperity, is considered auspicious for buying gold.
This Akshaya Tritiya invest in SBI Gold Fund, an open ended fund of funds scheme,
which will invest in units of SBI Gold Exchange Traded Scheme (SBI GETS). The
scheme seeks to provide returns that closely correspond to the returns provided by SBI
GETS. It gives you the benefit of getting an exposure to gold asset class in a convenient
way, without having a Demat Account.

Why invest in gold?

Gold, the most precious metal of all, is also a popular form of investment. The savings
come handy, for instance, during your daughter’s wedding. Investors can make the
most out of its appreciating value potential without going through the hassles of
physically possessing it, through Gold ETFs and Fund of Funds (FoFs). Better still, one
may invest a small amount through SIP in Gold FoFs. So invest now and enjoy its
growth potential.

Gold as an asset class:

Gold as an investment asset has given reasonable returns (in USD) during the last
decade.

Hedge against other asset class:

Gold, as an asset class has low correlation with other asset classes like equity and
bonds. It has low correlation with economic downturn in volatile times and is a good
hedge against inflation. Coupled with strong appreciation for over a decade, Gold has
emerged as an important asset class for investments in one's portfolio.

Diversification:
Easy and convenient way to diversify one's portfolio.
SIP in Gold

The following table shows the SIP returns in Gold for the past 10 years if Rs. 5000 were
invested every month. It is seen that Gold has given reasonable returns.
Period 1 Year 3 Years 5 Years 7 Years 10 Years

Amount
60,000 180,000 300,000 420,000 600,000
Invested (Rs.)

SIP Start Date 01/04/2013 01/04/2011 01/04/2009 01/04/2007 01/04/2004

Gold Price
(Rs/Gm) (As
2491.67 2491.67 2491.67 2491.67 2491.67
on March 31,
2014)

Total no. of
units 23.18 68.49 139.51 249.27 505.79
accumulated

Investment
value (As on
57,753.89 170,653.40 347,613.10 621,101.70 1,260,271.33
March 31,
2014) in Rs.

Returns on
SIP in Gold -6.89% -3.44% 5.83% 10.99% 14.21%
(%)

Source: Bloomberg. Past Performance may or may not be sustained in future.

Source: Bloomberg. Returns are as on 31/03/2014 with SIP being done on 1st of every
month. Returns are CAGR & have been calculated for cash flows at different point of
time using XIRR function in excel spreadsheet for LBMA AM Fix closing prices
converted into INR.Past performance may or may not be sustained in the future.
TERMS AND CONDITIONS FOR SYSTEMATIC INVESTMENT PLAN (SIP)
THROUGH ECS/DIRECT DEBIT

List of Cities for SIP ECS Facility :

Agra, Ahmedabad, Allahabad, Amritsar, Anand, Asansol, Aurangabad, Bangalore,

Bardhaman, Baroda,Belgaum, Bhavnagar, Bhilwara, Bhopal, Bhubaneshwar, Bijapur,
Bikaner, Calicut, Chandigarh, Chennai, Cochin, Coimbatore, Cuttack,Davangere,
Dehradun, Dhanbad, Durgapur, Erode,Gadag, Gangtok, Goa, Gorakhpur, Gulbarga,
Guwahati, Gwalior, Haldia, Hasan, Hubli,Hyderabad, Indore, Imphal, Jabalpur, Jaipur,
Jalandhar, Jammu, Jamnagar, Jamshedpur, Jodhpur, Kakinada, Kanpur, Kolhapur,
Kolkata, Kota,Lucknow, Ludhiana, Madurai, Mandya, Mangalore, Mumbai, Mysore,
Nagpur, Nasik, Nellore, New Delhi, Patna, Pondicherry, Pune, Raichur,Raipur, Rajkot,
Ranchi, Salem, Shillong, Shimla , Shimoga, Sholapur, Siliguri, Surat, Thirupur,
Tirunelveli, Tirupati, Trichur, Trichy, Trivandrum,Tumkur, Udaipur, Udipi, Varanasi,
Vijayawada and Vizag.

List of Direct Debit Banks (All core branches):

Axis Bank, Bank of Baroda, Bank of India, Citibank, HDFC Bank, IDBI Bank, IndusInd
Bank,Kotak Mahindra Bank, Punjab National Bank, State Bank of Bikaner & Jaipur,
State Bank of Hyderabad, State Bank of India (including SBS &SB Indore), State Bank
of Mysore, State Bank of Patiala, State Bank of Travancore and Union Bank of India
The AMC may alter the list of banks participating in direct debit arrangement from time
to time / withdraw direct debit facility from banks,based on its experience of dealing with
any such bank or add/withdraw the name of the bank with whom direct debit facility
arrangement can be introduced/ discontinued as the case may be.i. The SIP ECS
facility is offered to investors having bank account in select cities mentioned above. The
debit to the bank account wouldbe processed directly or through the RBI ECS (Debit
Clearing).
The earliest date for first SIP debit through ECS/Direct Debit is 15th October 2011
(for the applications submitted during NFO).

.Incase the condition is not met, the SIP would start on the same date from the next
month. If the date on the application is a non-Business Day for the scheme, then the
units shall be allotted on the next Business Day.
iii. Completed Application Form for Cancellation/Change of Bank Mandate for SIP debit
can be submitted on any date of the month and the same would be processed subject
to the condition that there would be a minimum of 30 days period between the
submission of the application and the SIP date.
iv. The cities in the list may be modified / updated / changed / removed at any time in
future entirely at the discretion of SBI Funds Management Pvt. Ltd without assigning
any reasons or prior notice. If any city is removed, SIP instructions for investors in such
cities via ECS facility route will be discontinued without prior notice.
v. The bank account provided for ECS facility should participate in local MICR clearing.
vi. SIP facility is available only on specific dates of the month viz.
5th/10th/15th/20th/25th/30th (For February, last business day). In case 5th/10th/
15th/20th/25th/30th (For February, last business day) is a holiday then next business
day.
vii. The investor agrees to abide by the terms and conditions of ECS facility of Reserve
Bank of India (RBI).
viii. Investor will not hold SBI Funds Management Pvt. Ltd , its registrars and other
service providers responsible if the transaction is delayed or not effected or the investor
bank account is debited in advance or after the specific SIP date due to various clearing
cycles of ECS.
ix. SBI Funds Management Pvt Ltd., its registrars and other service providers shall not
be responsible and liable for any damages/compensation
for any loss, damage etc. incurred by the investor. The investor assumes the entire risk
of using this facility and takes full responsibility.
x. SBI Funds Management Pvt Ltd. reserves the right to reject any application without
assigning any reason thereof.
xi. Investors can opt for the facility of perpetual SIP (Till further notice) through
ECS/Direct Debit by ticking appropriate box in SIP ECS/
Direct Debit facility registration cum mandate form. Investor can choose to discontinue
the facility of perpetual SIP (Till further notice) by
giving 30 days written notice at any of our Investor secvice centres.
 CHAPTER-3:
THEROTICAL VIEW:
  3.1-Three Key Participants:

•Authorized Dealer – Importer of Gold From LBMA approved refineries

•Custodian – Safe Keeper of Gold
•Authorized Participants – Bullion Dealer who does market making

3.2-Target segment:

All the investors who would like to use Gold as portfolio

diversification, a long term store of value and Real time value exposure of gold which
includes:
• Individual Investor
• Institutional Investor
• HNI’s
• Others (Trusts, Pension Funds etc…)
• Investor who wants to invest in Gold as along term consumption.
 3.3 - RISK FACTORS:

1. Standard Risk Factors:

1. Mutual Fund units and security investments are subject to market risks and there is
no assurance or guarantee that the objectives of the Scheme will be achieved.
2. As with any investment in securities, the NAV of the Units issued under the Scheme
can go up or down depending on the factors and forces affecting the capital markets.
3. Past performance of the Sponsors / AMC / Mutual Fund or their affiliates is not
necessarily indicative of the future performance of the Scheme.
4. The Sponsors are not responsible or liable for any loss resulting from the operation of
the Scheme beyond the initial contribution of Rs.1 lakh made by them towards setting
up the Mutual Fund or such other accretions and additions to the same.
5. SBI Gold Fund is the name of the Scheme and does not in any manner indicate
either the quality of the Scheme or its future prospects and returns.
6. The NAV’s of the Scheme may be affected by the changes in the general market
conditions, factors and forces affecting the capital markets in particular, level of interest
rates, various market related factors and trading volumes, settlement periods and
transfer procedures, currency exchange rates, changes in the government policies,
taxation laws, any other policies, political and economic developments etc.
7. Subject to the Regulations, the Sponsor / affiliates / subsidiaries, the AMC or the
Board of Trustees may invest either directly or indirectly in the Scheme. These entities
may acquire a substantial portion of the Scheme’s units and collectively constitute a
major investor in the Scheme. Accordingly, redemption of units by these entities may
have an adverse impact on the units of the Scheme because the timing of such
redemption may impact the ability of other unitholders to redeem their units. The same
impact would exist for any large investor, who holds a significant number of units of the
Scheme.
8. In the event of receipt of an inordinately large number of redemption requests and
inability of the Underlying Scheme(s) to generate enough liquidity because of market
conditions, there may be delays in redemption of units.
9. The liquidity of the Scheme's investments is inherently restricted by liquidity of
Underlying Scheme.
10. Unitholders of the Scheme are not being offered any guarantee / assured returns.
11. Changes in government policy in general and in tax benefits applicable to mutual
funds may impact the returns to investors in the Scheme.

2. Scheme Specific Risk Factors:

redemptions under certain circumstances as described under the section titled Right to
Limit Redemptions.
b. The Mutual Fund is not assuring any dividend nor is it assuring that it will make any
dividend distributions. All dividend distributions are subject to the availability of
distributable surplus and would depend on the performance of the scheme.
c. Investments under the scheme may also be subject to the following risks:
Market Risk The Scheme’s NAV will react to the prices of gold. The investor could lose
money over short periods due to fluctuation in the Scheme’s NAV in response to factors
such as economic and political developments, changes in interest rates and perceived
trends in gold prices, market movements and over longer periods during
market upturns. Additionally, the prices of gold may be affected by several factors such
as global gold supply and demand, investors’ expectations with respect to the rate of
inflation, currency exchange rates, interest rates, etc. Crises may motivate large‐scale
sales of gold, which could decrease the domestic price of gold. Some of the key factors
affecting gold prices are as follows:
Asset Class Risk
The domestic price of gold may vary from time to time. Further, the returns from the
types of securities in which a Scheme invests may underperform returns from the
various general securities markets or different asset classes. Different types of
securities tend to go through cycles of out‐performance and under
performance in comparison of the general securities markets.
 3.4- GOLD FUTURE:

Gold futures contracts are firm commitments to make or take delivery of a specified
quantity and purity of gold on a prescribed date at an agreed price. The initial margin or
cash deposit paid to the broker is only a fraction of the price of the gold underlying the
contract. That means investors can achieve notional ownership of a value of gold
considerably greater than their initial cash outlay. While this leverage can be the key to
significant trading profits, it can also give rise to equally significant losses in the event of
an adverse movement in the gold price. Futures prices are determined by the market's
perception of what the carrying costs - including the interest cost of borrowing gold plus
insurance and storage charges - ought to be at any one time. The futures price is
usually higher than the spot price for gold. Futures contracts are traded on regulated
commodity exchanges.
 3.5- GOLD POOL ACCOUNTS:

There are alternatives for investors wishing to open gold accounts holding less than
1000 ounces.
For instance, in Gold Pool Accounts - where you have a defined, unsegmented interest
in a gold accounts pool of gold - you can invest as little as one ounce.

3.6- ELECTRONIC CURRENCIES:

There are also electronic 'currencies' available - linked to gold bullion in allocated
storage which offer a simple and cost-effective way of buying and selling gold, and
using it as money. Any amount of gold can be purchased, and these currencies allow
gold to be used to send online payments worldwide.
 3.7- GOLD ACCUMULATION PLAN
Gold Accumulation Plans (GAPs) are similar to conventional savings plans in that they
are based on the principle of putting aside a fixed sum of money every month. What
makes GAPs different from ordinary savings plans is that the fixed sum is invested in
gold. A fixed sum of money is withdrawn automatically from an investor's bank account
every month and is used to buy gold every trading day in that month. The fixed monthly
sums can be small, and purchases are not subject to the premium normally charged on
small bars or coins. Because small amounts of gold are bought over a long period of
time, there is less risk of investing a large sum of money at the wrong time. At any time
during the contract term (usually a minimum of a year), or when the account is closed,
investors can get their gold in the form of bullion bars or coins, and sometimes even in
the form of jewelry.
 3.7 - GOLD CERTIFICATES

Historically, gold certificates were issued by the U.S. Treasury from the civil war until
1933. Denominated in dollars, these certificates were used as part of the gold standard
and could be exchanged for an equal value of gold. These U.S. Treasury gold
certificates have been out of circulation for many years, and they have become
collectibles. They were initially replaced by silver certificates, and later by Federal
Reserve notes. Nowadays, gold certificates offer investors a method of holding gold
without taking physical delivery. Issued by individual banks, particularly in countries like
Germany and Switzerland, they confirm an individual's ownership while the bank holds
the metal on the client's behalf. The client thus saves on storage and personal security
issues, and gains liquidity in terms of being able to sell portions of the holdings (if need
be) by simply telephoning the custodian.

The Perth Mint also runs a certificate programmer that is guaranteed by the government
of Western Australia and is distributed in a number of countries.The Perth Mint
Certificate Program (PMCP) enables you to invest precious metal without the
inconvenience and risk of personal storage. The Perth Mint issues a Certificate to you
confirming your purchase, which is stored at the Mint on your behalf.
 3.8 - GOLD ORIENTED FUNDS:

A number of collective investment vehicles specialize in investing in the shares of gold

mining companies. The term "collective investment vehicles" as used here should be
taken to include mutual funds, open-ended investment companies (OEICs), closed-end
funds, unit trusts, and any similar structures. A wide range of such funds exists and they
are domiciled in a number of different countries. These funds are regulated financial
products and as such it is not possible here to provide details on any specific funds.

Funds are likely to differ in their structure - some may invest simply in the shares of gold
mining companies, some may invest in companies that mine minerals other than gold,
some may invest in futures as well as mining equities and some may invest partly in
mining equities and partly in the underlying metal. It would be misleading to equate
investment in a gold mining equity with direct investment in gold bullion as there are
some significant differences. The appreciation potential of a gold mining company share
depends on market expectations of the future price of gold, the costs of mining it, the
likelihood of additional gold discoveries and several other factors. To a degree,
therefore, the success of the investment depends on the future earnings and growth
potential of the company. Most gold mining equities tend to be more volatile than the
gold price. While they are subject to the same risk factors that influence the prices of
most other equities there are additional risks linked to the mining industry in general and
to individual mining companies specifically.
 3.10 - Risk Control strategies:

The AMC has necessary framework in place for risk mitigation at an enterprise level.
The Risk Management division is an independent division within the organization.
Internal limits are defined and judiciously monitored. Risk indicators on various
parameters are computed and are monitored on a regular basis. There is a Board level
Committee, the Risk Management Committee of the Board, which enables a dedicated
focus on risk factors and the relevant risk mitigants.

For the mitigation of the above mentioned risk‐factors in underlying schemes, the
Fund‐Manager will follow an internal selection/allocation process approved by
Investment Committee and Risk Department.

The Fund‐Manager will be responsible for taking investment decisions, scheme

selection, portfolio construction and timing of investment decisions within the approved
framework.

The process will help to ensure the monitoring of the following within underlying
schemes and for Money‐Market exposures:
For risk control, the following may be noted:

Liquidity risks:

The liquidity of the FoF will be determined by the time taken by the Mutual Fund for the
redemption of units in the underlying scheme which may be significant in the event of a
high number of redemption requests or a restructuring of the scheme. The liquidity of
the underlying scheme’s investments may be inherently restricted by trading volumes,
transfer procedures and settlement periods. Liquidity Risk can be partly mitigated by
ensuring that investment is in line with the internal selection/allocation process
approved by Investment Committee and Risk Department.

Volatility risks:

Investments in underlying scheme will have all the risks associated with the underlying
schemes including performance of gold prices, interest rate risk, volatility etc. There is
the risk of volatility in markets due to external factors like liquidity flows, economic policy
etc. Volatility Risk can be partly mitigated by ensuring that judicious investments are
made in line with the internal selection/allocation process approved by Investment
Committee and Risk Department.

Credit Risks:

Investments in debt & money market instruments will have credit risks resulting from
uncertainty in counterparty’s ability or willingness to meet its contractual obligations
Credit Risk can be partly mitigated by ensuring that judicious investments are made in
line with the internal selection/allocation process approved by Investment Committee
and Risk Department.
 3.11 SWOT ANALYSIS OF SBI:
Strength/ Opportunities:

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

• Continued effort to increase low cost deposit would ensure improvement in NIMs and
hence earnings.

• Growing retail & SMEs thrust would lead to higher business growth.

• Strong economic growth would generate higher demand for funds pursuant to higher
corporate demand for credit on account of capacity expansion.

Weakness/ Threats:

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

• SBI is currently operating at a lowest CAR. Insufficient capital may restrict the growth
prospects of the bank going forward.

• Stiff competition, especially in the retail segment, could impact retail growth of SBI and
hence slowdown in earnings growth.

• Contribution of retail credit to total bank credit stood at 26%. Significant thrust on
growing retail book poses higher credit risk to the bank.

• Delay in technology up gradation 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.
 QUESTIONNAIRE

Q1.In which bank , you have an account?

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

PARTICULARS PERCENTAGE
SBI 60 %
ICICI 33 %
HDFC 5%
OTHER 2%
TOTAL NO. OF PEOPLE 100
 RESPONSES OF PEOPLE IN %
70%
60%
60%

50%

40%
33%
% OF CUSTOMER RESPONSES
30%

20%

10% 5% 2%
0%
SBI ICICI HDFC OTHER

INTERPRETATIONS:

It has been observed that approximately 60% of 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 Bhilai. It also shows that
SBI have the highest market position in Bhubaneswar as per my sample.
Q2. Are you aware of products & services provided by SBI?

a) YES
b) NO

YES 85%

NO 15%
Total No. of People 100

90% YES, 85%

80%

70%

60%

50%

40%

30%

20% NO, 15%

10%

0%
YES NO

INTREPRETATION:-

From the above data it is clear that most of the customers (around 85%) of
Bhubaneswar have the idea about the product & services of SBI, the rest
15% have the idea about the product they are using. In this 15% most of
the people are from typical rural area (Farmers).
Q3. If yes are you aware of the advance products (Loan segments) of
SBI?

YES 95%

NO 5%

TOTAL NO. OF PEOPLE 100

% OF PEOPLE
100% 95%
90%
80%
70%
60%
50%
% OF PEOPLE
40%
30%
20%
10% 5%
0%
YES NO

INTREPRETATION:-

It is clear that most of the people have the idea about the advance product of SBI. Almost
all the 95% people who have the idea about the advance product are the user of SBI
product& service.
Q4. Which bank you prefer for taking loans?

SBI 62%

ICICI 12%

HDFC 2%

OTHER 24%

TOTAL NO. OF PEOPLE 100

Sales
70%
62%
60%

50%

40%

30%
Sales
24%
20%
12%
10%
2%
0%
SBI ICICI HDFC OTHER

INTREPRETATION:-

According to my sample size 85% of people prefer SBI for loan product, but
some people prefer ICICI, HDFC or OTHER Bank for loan because they
are working with that bank & it is easier for them to get loan from their bank
& it easier for them to pay the interest because it is less as compare to
other bank because they are the employee of that bank.
Q5. If you prefer SBI for taking loan than what influence you to take
Loan from SBI?

Most of the people said that they prefer SBI for taking loan because of the
transparency and the lowest interest rate for any kind of loan product. And
it is easy to get loan from SBI as compare to other bank because less
paper work is require and as it is the largest govt. bank in India and having
partnership with RBI (Reserve Bank of India) and other association, it is
easier for SBI to give loan to people with a longer repayment period.
Q.6 Which loan product of SBI you have used?

HOME LOAN 47%

EDUCATIONAL LOAN 20%

CAR LOAN 15%

PERSONAL LOAN 10%

OTHER 8%

TOTAL NO. OF PEOPLE 100

Sales
50% 47%
45%
40%
35%
30%
25%
20%
20% Sales
15%
15%
10% 8%
10%
5%
0%
HOME LOAN EDUCATIONAL CAR LOAN PERSONAL OTHER
LOAN LOAN

INTREPRETATION:-

From the sample size 85% of people are using the SBI loan product. From the 1800 people
47% of people took home loan from SBI. 20% of people took education loan for their
children, 15% of people took car loan from SBI. Some of the customer took 2 type of loan
from SBI like both car & educational loan and home & car loan. 10% of people took
personal loan.
Q7. What do you feel about the services providing by SBI in advance product?

Not satisfied 0%

Satisfactory 2%

Good 55%

Excellent 43%

TOTAL NO. OF PEOPLE 100

CUSTOMER PERCEPTION TOWARDS THE SERVICE PROVIDE

BY SBI IN ADVANCE PRODUCT
60% 55%
50%
43%
40%
CUSTOMER PERCEPTION
30% TOWARDS THE SERVICE
PROVIDE BY SBI IN
20% ADVANCE PRODUCT

10%
0% 2%
0%
NOT SAISFIED SATISFACTORY GOOD EXCELLENT

INTREPRETATION
From this it is clear that the service provide by SBI in its advance product is good in
between the customer. All of them satisfy with the product provide by SBI. 55% of people
said that the service provide by SBI is good & 43% said it is excellent & just 2% of people
said that it is satisfactory.
Q8. Which features you like most in Loan segments of SBI?

LESS PAPER WORK 3%

ATTRACTIVE INTEREST RATE 35%

TRANSPARENCY 20%

SIMPLE AND FAST PROCESSING 2%

LONGER REPAYMENT PERIOD 40%

TOTAL NO. OF PEOPLE 100

FEATURES LIKE BY CUSTOMER

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
LESS PAPER WORK ATTRACTIVE TRANSPARENCY SIMPLE & FAST LONGER
INTEREST RATE PROCESSING REPAYMENT
PERIOD

INTREPRETATION
Most of the people like the attractive interest rate & longer repayment period. It’s easier for
people to repay the whole loan amount with its interest with low interest rate and with longer
repayment period.
 PROJECT Findings:

 From this project it is found that SBI advance product having the 1stplace in the
market at Bhilai, 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
Bhubaneswar.
 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 Bhilai 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 bank’s advance product to SBIbecause of
hidden charges, high interest rate, less repayment period.
 Government employees are more concern than private employees for advance
product.
REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT:

 LESS PAPER WORK

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

Recommendation:

 Customer awareness programme is required so that more people should attract

towards 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.
Suggestions given by the consumers at the time of
survey:

 There is more time period for repayment of education loan.

 Education loan should be providing to private college also which is not under AICTE
or any kind of University.
 SBI should take steps to solve customer problems immediately.
 Agents should be trained, well educated & proper trained to convince the people
about different advance product.
 Loan sanction date should be according to customer convenient.
 A customer awareness programme should be taking place in rural area.
Conclusion

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

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

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

 Launch Innovative product

 Customized advance products
 Better customer services
 Fastest customers problem solving techniques
 Customer retention
Apart from all the above, SBI believe in providing good customer services to their customers
which is a key factor for success in future.
 Questionnaire

Name - _____________________________________

Occupation-__________________________________

Contact Detail -_______________________________

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

a) 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?
________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
___________________.

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.

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
___________________.

Bibliography:

Internet:
 www.google.co.in

 www.sbi.com

 www.slideshare.net

 WWW.WIKIPEDIA.COM
1

BOOKS
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Marketing research