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CONTENT

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Certificate from the Organization / Corporate Guide Certificate from the Faculty Guide Acknowledgement...02 Executive Summary..........................................................03 Chapter 1..04 Company Profile Overview...05 History...07 Competitors.......09 Strength/Opportunity & weakness/Threats...10 Different Products.....11 Awards & Recognitions by SBI........12 Chapter 2..14 Introduction to Advance Product....15 SBI Advance Product.....16 Statement the Problem...25 Research objectives....26 Significance and scope...27 Chapter 3.28 Research methodology Chapter 4 ...31 Analysis of data Chapter 5....39 Findings40 Suggestion & Recommendation..... 41 Conclusion43 Annexure (Questionnaire).44 N.R. Institute of Business Management, GLS-MBA

Bibliography....47

PREFACE
In the growing global competition, the productivity of any business concern depends upon the behavioral aspect of consumers. This topic deals with the customers perception towards different loans from SBI at Ahmedabad. This project report contains five different chapters. The report begins with the research methodology taken up to conduct the survey of customers. The second chapter is the introduction of the Banking industry in India and also about schedules, public and private sector banks. The third chapter includes about State Bank of Indias profile and its achievements, awards and recognition. The chapter also includes the different loans and its rate of interest prevalent. The fourth chapter includes comprehensive coverage of forecasting concepts and techniques which shows the analysis of data through tabulation, computation and graphical representation of data collected from survey. The fifth chapter deals with the findings, suggestion & conclusion part which is very much important after analysis is made.

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As we know that only analysis and conclusion is not the end of a research, so in the sixth chapter the recommendation part is covered which are made after a depth study of the analysis part of thesis. In each of the five chapters as described above, every chapter has been scheduled in a manner so as to enable the reader to appreciate the contents easily. The report is supported by figures and data wherever necessary with a view to assist the reader in developing a clear cut understanding of the topic.

CHAPTER 1 RESEARCH METHODOLOGY

1.1INTRODUCTION TO RESEARCH METHODOLOGY 1.2STATEMENT OF PROBLEM 1.3OBJECTIVE 1.4RESEARCH DESIGN 1.5RESEARCH INSTRUMENT N.R. Institute of Business Management, GLS-MBA

1.6SAMPLE SIZE 1.7SAMPLING TECHNIQUE 1.8RESEARCH ANALYSIS

1.9CLASSIFICATION AND TABULATION OF DATA 1.10STATISTICAL ANALYSIS OF DATA

1.1 INTRODUCTION TO RESEARCH METHODOLOGY


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

The survey is conducted on customers who have approached and availed loans from SBI Bank in the following sectors of retail assets: Housing loan. Car loan Education loan Rent plus Mortgage loan Personal Loan

Based on the analysis various information on why customers choose SBI only, what problems are they facing while availing loan from SBI, etc shall be implicated. Suggestions will then be given to the bank for any improvement that will be helpful enough to make the services more customer-friendly and easy to access.

1.2 STATEMENT OF PROBLEM


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SBI Main Branch, Ahmedabad wants to know about the customer perception about the loans provide by them to the people. To find out the need of the customer and hence formulate the strategy to give SBI a competitive edge. To find out the need of the customer in Ahmedabad region and introduce new product or facilitate new service in existing product.

1.3 OBJECTIVE
Summer Internship Project gives a practical exposure and helps in acquiring the on road skills. First and foremost objective is to find out the reasons why people opt for SBI loans. To generate different understanding how SBI can differentiate the products they are offering. To build a relationship with the customers and to follow up to make sure that they are satisfied with the product. To place SBI Loans ahead of the competitors. To find out the customer awareness on booming Advance Product market and to find out the using patterns of the people.

1.4 RESEARCH DESIGN


This is a descriptive research, which will be conducted on a sample size of 500 respondents. Following which the analysis will be carried out on the data collected to understand the various patterns and consumer preferences of banks for their loans.

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1.5 RESEARCH INSTRUMENT


Research instrument used is specifically a questionnaire including mostly close-ended questions which can be coded and hence analyzed for the study and to reveal important required information.

1.6 SAMPLE SIZE


Sample of 500 customers was taken into study, and their data was collected. Customers who have taken up loan from State Bank of India form the sample size.

1.7 SAMPLING TECHNIQUE


To study the project, a judgmental and convenience sampling technique was used.

1.8 RESEARCH ANALYSIS


The collected data will be edited, coded, tabulated, grouped and organized according to the requirement of the study. Tool specifically that will be used will be SPSS 17. Analysis will be done specifically by studying each and every question. Further statistical methods like Chi- Square, ZScore, Cross tabulation, Regression and Co-relation, trend analysis and trend forecasting on basis of some parameters will be used in order to justify the need of information. Also, charts and plots can be used to depict better picture of information sorted from the survey. N.R. Institute of Business Management, GLS-MBA

1.9 CLASSIFICATION AND TABULATION OF DATA


The data thus collected were classified according to the categories, counting sheets & the summary tables were prepared. The resultant tables were one dimensional, two dimensional.

1.10 STATISTICAL ANALYSIS OF DATA


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

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CHAPTER 2 INDUSTRY PROFILE

2.1 INTRODUCTION 2.2 FROM WORLD WARS TO INDEPENDENCE 2.3 POST INDEPENDENCE 2.4 NATIONALISATION OF BANKS
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2.5 LIBERALISATION OF BANKS

2.1 INTRODUCTION

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India N.R. Institute of Business Management, GLS-MBA

is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasicentral banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company that issues stock and requires shareholders to be held liable for the company's debt) It was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla.

When the American Civil War stopped the supply of cotton to Lancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.

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Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondichery, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India.

Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity N.R. Institute of Business Management, GLS-MBA

to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India,Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".

2.2 FROM WORLD WARS TO INDEPENDENCE


The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table: N.R. Institute of Business Management, GLS-MBA

Years

Number Authorised of capital banks that failed 12 42 11 13 9 7 (Rs. Lakhs) 274 710 56 231 76 209

Paid-up Capital (Rs. Lakhs) 35 109 5 4 25 1

1913 1914 1915 1916 1917 1918

2.3 POST INDEPENDENCE


The partition of India in Bengal, 1947 adversely impacted the economies for months.

of Punjab and West

paralyzing

banking

activities

India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included: In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."

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The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors. However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalisation of major banks in India on 19 July 1969.

2.4 NATIONALISATION OF BANKS

The RBI was nationalized on January 1, 1949 in terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).[Reference www.rbi.org.in] By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the possibility to nationalise the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and

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Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

2.5 LIBERALISATION OF BANKS

In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier asUTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. N.R. Institute of Business Management, GLS-MBA

The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 74% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks.All this led to the retail boom in India. People not just demanded more from their banks but also received more.

Currently (2007), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true.

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With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them.

In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

CHAPTER 3 COMPANY PROFILE

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3.1 OVERVIEW 3.2 MANAGEMENT 3.3 SHAREHOLDERS AND LIQUIDITY 3.4 KEY AREAS OF OPERATIONS 3.5 HISTORY 3.6 COMPETITORS AND IMPORTANT PLAYERS IN THE FIELD 3.7 SWOT ANALYSIS 3.8 DIFFERENT PRODUCTS OF SBI 3.9 AWARDS AND RECOGNITION 3.10 INTRODUCTION TO SBI LOANS 3.10.1 SBI HOME LOANS 3.10.2 SBI CAR LOANS 3.10.3 SBI EDUCATION LOANS 3.10.4 SARAL PERSONAL LOANS 3.10.5 LOAN AGAINST PROPERTY 3.10.6 LOAN AGAINST SHARES/DEBENTURES

3.1 OVERVIEW
State Bank of India is the largest and one of the oldest commercial bank in India, in existence for more than 200 years. The bank provides a full range of corporate, commercial and retail banking services in India. Indian central bank namely Reserve Bank of India (RBI) is the major share holder of the bank with 59.7% stake. The bank is capitalized to the extent of Rs.646bn with the public holding (other than promoters) at 40.3%. SBI has the largest branch and ATM

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network spread across every corner of India. The bank has a branch network of over 14,000 branches (including subsidiaries). Apart from Indian network it also has a network of 73 overseas offices in 30 countries in all time zones, correspondent relationship with 520 International banks in 123 countries. In recent past, SBI has acquired banks in Mauritius, Kenya and Indonesia. The bank had total staff strength of 198,774 as on 31st March, 2006. Of this, 29.51% are officers, 45.19% clerical staff and the remaining 25.30% were substaff. The bank is listed on the Bombay Stock Exchange, National Stock Exchange, Kolkata Stock Exchange, Chennai Stock Exchange and Ahmedabad Stock Exchange while its GDRs are listed on the London Stock Exchange. SBI group accounts for around 25% of the total business of the banking industry while it accounts for 35% of the total foreign exchange in India. With this type of strong base, SBI has displayed a continued performance in the last few years in scaling up its efficiency levels. Net Interest Income of the bank has witnessed a CAGR of 13.3% during the last five years. During the same period, net interest margin (NIM) of the bank has gone up from as low as 2.9% in FY02 to 3.40% in FY06 and currently is at 3.32%.

3.2 MANAGEMENT
The bank has 14 directors on the Board and is responsible for the management of the Banks business. The board in addition to monitoring corporate performance also carries out functions such as approving the business plan, reviewing and approving the annual budgets and borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the Chairman of the bank. The five-year term of Mr. Bhatt will expire in March 2011. Prior to this appointment, Mr. Bhatt was Managing Director at State Bank of Travancore. Mr. Bhatt has more than 30

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years of experience in the Indian banking industry and is seen as futuristic leader in his approach towards technology and customer service. Mr. Bhatt has had the best of foreign exposure in SBI. We believe that the appointment of Mr. Bhatt would be a key to SBIs future growth momentum. Mr. T S Bhattacharya is the Managing Director of the bank and known for his vast experience in the banking industry. Recently, the senior management of the bank has been broadened considerably. The positions of CFO and the head of treasury have been segregated, and new heads for rural banking and for corporate development and new business banking have been appointed. The managements thrust on growth of the bank in terms of network and size would also ensure encouraging prospects in time to come.

3.3 SHAREHOLDERS AND LIQUIDITY


Reserve Bank of India is the largest shareholder in the bank with 59.7% stake followed by overseas investors including GDRs with 19.78% stake as on September 06. Indian financial institutions held 12.3% while Indian public held just 8.2% of the stock. RBI is the monetary authority and having majority shareholding reflects conflict of interest. Now the government is rectifying the above error by transferring RBIs holding to itself. Post this, SBI will have a further headroom to dilute the GOIs stake from 59.7% to 51.0%, which will further improve its CAR and Tier I ratio.

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3.4 KEY AREA OF OPERATIONS


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

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3.5 HISTORY
The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was redesigned as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

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

Group Photograph of Central Board (1921)

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3.6 COMPETITORS AND IMPORTANT PLAYERS IN THIS 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

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3.7 SWOT ANALYSIS


Strength/ Opportunities: The growth for SBI in the coming years is likely to be fueled by the following factors: Continued effort to increase low cost deposit would ensure improvement in NIMs and hence earnings. Growing retail & SMEs thrust would lead to higher business growth. Strong economic growth would generate higher demand for funds pursuant to higher corporate demand for credit on account of capacity expansion.

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.

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

Delay in technology upgradation could result in loss of market shares. Management indicated a likely pension shortfall on account of AS15 to be close to Rs50bn. Slow down in domestic economy would pose a concern over credit off-take thereby impacting earnings growth.

3.8 DIFFERENT PRODUCTS OF SBI

DEPOSIT Savings Account Life Plus Senior Citizens Savings Account Fixed Deposits

LOANS Home Loans Loan Against Property

CARDS Consumer Cards Credit Card

DIFFERENT CREDIT CARDS SBI International cards SBI Gold cards

Personal Loans Car Loan

Travel Card

SBI Gold Master cards Your City Your Cards

Security Deposits Recurring

Debit Cards

Loans

Commercial

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Deposits Tax-Saver Fixed Deposit Salary Account Advantage Woman Savings Account Rural Savings Account People's Savings Account Freedom Savings Account

against Securities Two Wheeler Preapproved Loans Retail Asset

Cards Corporate Cards Prepaid Card Purchase Card SBI Employee Cards Partnership Cards

Farmer Finance

Distribution Cards Business Card SBI Advantage Cards

Business Installme nt Loans Flexi Cash

Merchant Services

3.9 AWARS AND RECOGNITIONS

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3.10 INTRODUCTION TO SBI LOANS


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

Types of Advance Product


Home Loan Educational Loan Car Loan

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Personal Loan Property Loan Loan Against Shares\Debentures

Now a day a large number of people are taking loan from different banks. It helps people to fulfill their need and it really easy to repayment the loan amount with a longer repayment period.

3.10.1 SBI HOME LOANS


Purpose Purchase/ Construction of House/ Flat Purchase of a plot of land for construction of House Extension/ repair/ renovation/ alteration of an existing House/ Flat Purchase of Furnishings and Consumer Durables as a part of the project cost. Takeover of an existing loan from other Banks/ Housing Finance Companies.

Eligibility Minimum age 18 years as on the date of sanction Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the loan should be fully repaid. Availability of sufficient, regular and continuous source of income for servicing the loan repayment. Loan Amount 40 to 60 times of NMI, depending on repayment capacity as % of NMI as under N.R. Institute of Business Management, GLS-MBA

Net Annual Income Upto Rs.2 lacs Above Rs.2 lac to Rs. 5 lacs Above Rs. 5 lacs

EMI/NMI Ratio 40% 50% 55%

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

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

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Interest Rates July 2010 1 SBI EASY HOME LOAN (JULY 2010) . (Base Rate =7.50% p.a.) Interest rate for proposals sanctioned between 1st July 2010 and 30th September 2010. Loan amount Facility Type Interest during first year 2nd & 3rd year 3rd year year Maximum Rs.50 Lacs OD (MaxGain) or TL 8% p.a.(Fixed) 9% p.a.(Fixed) rate being 9.25% p.a. time of reset, with a reset frequency of 5 years.

Floating interest rate after 1.75% above Base Rate, Currently effective Fixed interest rate after 3rd 3.50% above the Base Rate prevailing at the

2 SBI ADVANTAGE HOME LOAN (JULY 2010) . Interest rate for proposals sanctioned

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between 1st July 2010 and 30th September 2010. Loan amount Facility Type Interest during first year 2nd & 3rd year 3rd year year Above Rs.50 Lacs TL 8% p.a.(Fixed) 9% p.a.(Fixed) effective rate being 9.75% p.a. time of reset, with a reset frequency of 5 years.

Floating interest rate after 2.25% above the Base Rate, Currently Fixed interest rate after 3rd 3.50% above the Base Rate prevailing at the

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

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3.10.2 SBI CAR LOAN:


Purpose

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

Eligibility To avail an SBI Car Loan, you should be : Individual between the age of 21-65 years of age. A Permanent employee of State / Central Government, Public Sector Undertaking, Private company or a reputed establishment or A Professionals or self-employed individual who is an income tax assessee or A Person engaged in agriculture and allied activities. Net Annual Income Rs. 100,000/- and above.

Salient Features Loan Amount There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times the net annual income can be sanctioned. If married, your spouse's N.R. Institute of Business Management, GLS-MBA

income could also be considered provided the spouse becomes a co-borrower in the loan. The loan amount includes finance for one-time road tax, registration and insurance!

Type of Loan 1. Term Loan 2. Overdraft - a) For New vehicles only b) Minimum loan amount: Rs. 3 lacs. Documents required You would need to submit the following documents along with the completed application form if you are an existing SBI account holder: 1. Statement of Bank account of the borrower for last 12 months. 2. 2 passport size photographs of borrower(s). 3. Signature identification from bankers of borrower(s). 4. A copy of passport /voters ID card/PAN card. 5. Proof of residence. 6. Latest salary-slip showing all deductions 7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years for professional/self-employed/businessmen wherever applicable to be submitted. 8. Proof of official address for non-salaried individuals. If you are not an account holder with SBI you would also need to furnish documents that establish your identity and give proof of residence. duly accepted by the ITO

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Margin New / Used vehicles: 15% of the on the road price. Repayment You enjoy the longest repayment period in the industry with us.

Repayment period: For Salaried: Maximum of 84 months

For Self-employed & Professionals: Maximum 60 months

Repayment period for used vehicles :Up to 84 months from the date of original purchase of the vehicle (subject to maximum tenure as above). Prepayment Penalty: Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain conditions

Interest Rates w.e.f 01.07.2010 SBI EZEE CAR LOAN SCHEME SL. No 1 2 3 PARAMETER SCHEME Applicable to Scheme Period Interest Rate DETAILS All New Car Loans to Public From July 1, 2009 to September 30, 2010 Term Period Overdraft Loan

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First year For 2nd & 3rd

8% Fixed 10%

8.5% fixed 10.5%

fixed fixed year From 4th Year Onwards: The floating interest rate will be reset to applicable card rate contracted on the date of sanction. Currently the rates are: Period Term Loan Overdraft For 4th & 3.75% above Base 4.25% above Base 5th year Rate i.e.11.25% Rate i.e.11.75% For 6th & 4.00% above Base 4.50% above Base 7th Rate i.e.11.50% Rate i.e. 12.00% year Base Rate 7.50 % No other interest concession will be given under any tie-up arrangement or otherwise below the offer rate. Interest Rate will be reset on the anniversary date of the loan to the applicable card rate 4 Reset Period contracted as on the date of sanction under the respective new car loan schemes i.e. Spreads above Base Rate as applicable on the date of 5 Processing fee Sanction as per the agreement. 0.50% of loan amount

SBI ADVANTAGE CAR LOAN SCHEME SL. PARAMETER DETAILS

N.R. Institute of Business Management, GLS-MBA

No 1 2

SCHEME Applicable to Scheme Period

All New Car Loans to Public From July 1, 2009 to June 30, 2010 Term Period Overdraft Loan 8% 8.5% First year Fixed fixed For 2nd & 10% 10.5% 3rd fixed fixed year From 4th Year Onwards: The floating interest rate will be reset to applicable card rate contracted on the date of sanction. Currently the rates are: Period For 4th & 5th year For 6th & 7th Term Loan 3.50% above Base Rate i.e. 11.00% 3.75% above Base Overdraft 4.00% above Base Rate i.e. 11.50% 4.25% above Base Rate i.e.11.75%

Interest Rate

Rate i.e.11.25% year Base Rate 7.50 %

No other interest concession will be given under any tie-up arrangement or otherwise below the offer rate. Interest Rate will be reset on the anniversary date of the loan to the applicable card rate 4 Reset Period contracted as on the date of sanction under the respective new car loan schemes i.e. Spreads above Base Rate as applicable on the date of Sanction as per the agreement. N.R. Institute of Business Management, GLS-MBA

Processing fee

0.50% of loan amount

NRI Car Loan Tenure Up to 3 years (for loans Rs. 5 lac & above) Up to 3 years (for loans below Rs.5 lac) Above 3 yrs up to 5 yrs (for all loans) Above 5 yrs (for all loans) Rate of Interest 3.50% above Base Rate i.e. 11.00% 3.75% above Base Rate i.e. 11.25% p.a. 3.75% above Base Rate i.e. 11.25% p.a. 4.00% above Base Rate i.e. 11.50% p.a. Used Vehicles Tenure Up to 3 years Above 3 yrs Rate of Interest 7.25% above Base Rate i.e. 14.75% p.a. 7.50% above Base Rate i.e. 15.00% p.a.

3.10.3 EDUCATION LOAN:


A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured.

Eligible Courses All courses having employment prospects are eligible. N.R. Institute of Business Management, GLS-MBA

Graduation courses/ Post graduation courses/ Professional courses Other courses approved by UGC/Government/AICTE etc.

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

Any other expenses required to complete the course like study tours, project work etc. Amount of Loan For studies in India, maximum Rs. 10 lacs Studies abroad, maximum Rs. 20 lacs

Base Rate 7.50 % w.e.f. 01.07.2010 SBI Student Loan Scheme Loan Amount For loans upto Rs.4 lacs

Rate of Interest 3.75% above Base Rate, currently 11.25% p.a.

N.R. Institute of Business Management, GLS-MBA

Above Rs.4 lacs and upto Rs.7.50 lacs Above Rs.7.50 lacs

5.25% above Base Rate, currently 12.75% p.a. 4.25% above Base Rate, currently 11.75% p.a.

(0.50% concession in interest for girl student) Education Loan Scheme for students of ISB, Hyderabad 2.75% above Base Rate, currently 10.25% p.a. (0.50% concession in interest for girl student) SBI Scholar Loan Scheme 2.75% above Base Rate, currently 10.25% p.a. (Irrespective of the loan amount) (0.50% concession in interest for girl student) Processing Fees No processing fee/ upfront charges Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money Repayment Tenure Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier. Place of Study Loan Amount Repayment Period Years Studies in India Studies Abroad Rs. 10.0 lacs Rs. 20.0 lacs 5-7 5-7 in

N.R. Institute of Business Management, GLS-MBA

Security Amount For loans upto Rs. 10.00 lacs for Studies in India and upto Rs. 20.00 lacs for studies abroad Upto Rs. 4 lacs . 7.50 lacs No Security Collateral security in the form of suitable third party Guarantee. The bank may, at its discretion, in exceptional guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower" Tangible collateral security of suitable value, along with the assignment of future income of the student For payment of installments. cases, weive third party

N.R. Institute of Business Management, GLS-MBA

All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law

Margin For loans up to Rs.4.0 lacs : No Margin For loans above Rs.4.0 lacs: Studies in India: 5% Studies Abroad: 15%

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

N.R. Institute of Business Management, GLS-MBA

3.10.4 SBI SARAL PERSONAL LOAN: Purpose The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or foreign travel, medical treatment of self or a family member, meeting any financial liability, such as marriage of son/daughter, defraying educational expenses of wards, meeting margins for purchase of assets etc.) Eligibility You are eligible if you are a Salaried individual of good quality corporate, self employed engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing.

Salient Features Loan Amount Your personal loan limit would be determined by your income and repayment capacity. Minimum: Rs.24,000/- in metro and urban centres Rs.10, 000/- in rural/semi-urban centres N.R. Institute of Business Management, GLS-MBA

Maximum: 12 times Net Monthly Income for salaried individuals and pensioners subject to a ceiling of Rs.10 lacs in all centres Documents Required Important documents to be furnished while opening a Personal Loan Account: For existing bank customers Passport size photograph From salaried individuals Latest salary slip and Form 16 Margin We do not insist on any margin amount.

Base Rate 7.50 % w.e.f. 01.07.2010 Loans against NSCs/KVPs/RBI Relief Bonds/Surrender Value of SBI Life /LIC/SBI Magnums, etc. N.R. Institute of Business Management, GLS-MBA

Tenure Upto 3 years More than 3 years and below 6 years

Rate of Interest 4.50% above Base Rate, currently 12.00% p.a. 4.50% above Base Rate, currently 12.00% p.a.

Repayment The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to, without attracting any prepayment penalty. Security NIL Processing Fee Processing charges are 1-2% of the loan amount. This is amongst the lowest fees in the industry. Processing fees have to be paid up front. There are no hidden costs or other administrative charges. 3.10.5 PROPERTY LOAN: Purpose This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If amount of loan is Rs.25.00 lacs and above then purpose of loan will have to be specified along with an undertaking that loan will not be used for any speculative purpose whatever including speculation on real estate and equity shares.

N.R. Institute of Business Management, GLS-MBA

Eligibility You are eligible if you are: A. An individual who is; a. An Employee or b. A Professional, self-employed or an income tax assesse or c. Engaged in agricultural and allied activities.

B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net Annual Income (others) is in excess of Rs.1,50,000/-. The income of the spouse may be added if he/she is a co-borrower or a guarantor. C. Maximum age limit: 60 years.

Salient Features Loan Amount Minimum: Rs.25, 000/Maximum: Rs.1 crore. The amount is decided by the following calculation: 24 times the net monthly income of salaried persons (Net of all deductions including TDS) OR N.R. Institute of Business Management, GLS-MBA

2 times the net annual income of others (income as per latest IT return less taxes payable)

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

Interest Term Loan 0.75% above SBAR. i.e.13.00% p.a. Floating Repayment Maximum of 60 equated monthly installments, upto 120 months for salaried individuals with check-off facility. You could opt to divert any surplus funds towards prepayment of the loan without attracting any penalty.

Security As per banks extant instructions.

3.10.6 LOAN AGAINST SHARES \ DEBENTURES: Eligibility This facility is available to our existing individual customers enjoying a strong relationship with SBI. This loan could be availed either singly or as a joint account with spouse in 'Either or Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan. The facility is available at 50 select centers.

N.R. Institute of Business Management, GLS-MBA

Salient Features: Purpose For meeting contingencies and needs of personal nature. Loan will be permitted for subscribing to rights or new issue of shares / debentures against the security of existing shares / debentures. Loan will not be sanctioned for (i) speculative purposes (ii) inter-corporate investments or (iii) acquiring controlling interest in company / companies. Loan Amount You can avail of loans up to Rs 20.00 lacs against your shares/debentures.

Documents Required You will be required to submit a declaration indicating: Details of loans availed from other banks/ branches for acquiring shares/ debentures. Details of loans availed from other banks/ branches against security of shares/ debentures

N.R. Institute of Business Management, GLS-MBA

Margin You will need to provide a margin amount of 50% of the prevailing market prices of the shares/ non-convertible debentures being offered as security. (The market prices refer to the prices in the Stock Exchanges as reported in the Economic Times.) Base Rate 7.50 % w.e.f. 01.07.2010 LOANS AGAINST SHARES / DEBENTURES / BONDS Sceme Rate of Interest Equity Plus Scheme 6.50% above 14.00% p.a. Base Rate, currently

Repayment Schedule To be liquidated in maximum period of 30 months through a suitable reducing DP programme. In case of a default or if the outstanding is over Rs.20.00 lacs, the shares/debentures will be transferred in the name of the Bank. Security: Pledge of the demat shares/debentures against which overdraft is granted.

N.R. Institute of Business Management, GLS-MBA

CHAPTER 4 ANALYSIS OF DATA

N.R. Institute of Business Management, GLS-MBA

1. What services have you availed from SBI? Customers were asked to tell us what was the type loan availed from them and the following graph could be prepared.

Most of the people who come to SBI to avail loans have preferred SBI mainly for Home loans. N.R. Institute of Business Management, GLS-MBA

Type of Loan taken and how customers feel about the interest rate. Count Interest Extremely Dissatisfactory Loan Home Education Car Personal Total 5 6 4 0 15 Neutral 8 9 8 0 25 Satisfactory 253 65 98 1 417 Satisfactory 29 8 6 0 43 Total 295 88 116 1 500

From the above derived table from Statistics 17 software, we can see that, maximum customers who have availed home loan are satisfied with the interest rate, which is lower than that compared to other banks. 2. Since how many years you have been a customer of SBI? The next question that was asked to these customers was about the number of years since when they were a customer of SBI loans, and the following analysis was derived for the years since which they are associated with SBI Bank.

Most of the customers of SBI Loans are associated less than a year and looking for a good interest rate from them, the next being 1-3 yrs of association with the Bank. This shows, that since the past 1-3 years customers are being attracted towards the loans offered by SBI bank. N.R. Institute of Business Management, GLS-MBA

N.R. Institute of Business Management, GLS-MBA

3. How will you rate the following factors associated while dealing with SBI? Response of employees Parking Dealing in comfortable language seating arrangement Location from house May I help you/Inquiry counter Drinking water Ease of locating personnel

Response: Customers feel the average response of employees is Good

N.R. Institute of Business Management, GLS-MBA

Language: Customers were asked about the language in which the employees respond to them, they said it was a comfortable language and was Good.

N.R. Institute of Business Management, GLS-MBA

Parking: Most of the customers are not comfortable with the Parking at SBI Branches, which at times does disturb the customers.

Location: Most of the customers were comfortable with the proximity of the SBI Branch from their house.

N.R. Institute of Business Management, GLS-MBA

Seating: The seating arrangements at SBI, according to the customers is Good.

Water: Availability of water at SBI is Neutral, if SBI needs to consider convenience of customers, drinking water facilities should be kept in mind.

N.R. Institute of Business Management, GLS-MBA

Inquiry: There are many customers who feel the Inquiry counters are good.

Locating Personnel: Customers often find it difficult in locating the personnel in the bank especially when they are to go from one branch to another.

N.R. Institute of Business Management, GLS-MBA

What option did you select for repayment of Loans?

There is no particular repayment preference of the customers. Customers generally prefer the repayment which is most convenient for them.

N.R. Institute of Business Management, GLS-MBA

Would you prefer to have your loan process online?

Application
1 221 48 65 56 4

Status
1 2 3 4 3 141 148 61 40

Most of the customers would prefer to have their loan processes to be done online. On the basis of data Rank collected, we can evaluate that 78% of the people want to have loan processes online. We also asked our customers, to rank the application, status, schedule and submission in accordance to their preference. They ranked in the following manner: 1. 2. 3. 4. Submission Schedule Status Application

2 3 4

143.0 5 Rank

130.0 5

Submission
1 2 3 4 13 89 116 172 1

Schedul e
1 2 3 4 2 15 105 149 121

Rank

76.4 Rank

79.5

Rating the overall service quality:

N.R. Institute of Business Management, GLS-MBA

Most of the customers rate the overall service quality of the SBI Loans between Neutral and Good. Another analysis was done, to understand why majority of the customers regarded as the service quality to be neutral.

The next analysis was done in order to understand if there was any co-relation between the service quality being rated as neutral and other variables like, time duration, documentation, etc.

N.R. Institute of Business Management, GLS-MBA

In order to find out a co-relation between Time duration taken to get the loan sanctioned and the overall service quality, a Chi-square Test is conducted.

Time taken to sanction the loan against the service quality Count Time Extremely Dissatisfactory Service_quality Very Poor Poor Neutral Good Excellent Total 5 4 9 3 0 21 Dissatisfactory 6 18 94 55 5 178 Neutral 0 3 74 45 6 128 Satisfactory 1 1 36 112 20 170 Extremely Satisfactory 0 0 1 1 1 3 Total 12 26 214 216 32 500

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio N of Valid Cases 150.030a 129.918 500 df 16 16 sided) .000 .000

a. 11 cells (44.0%) have expected count less than 5. The minimum expected count is .07.

As per the table of Chi-Square test, there is a significant co-relation between time taken to get the loan sanctioned and the service quality.

N.R. Institute of Business Management, GLS-MBA

From the graph pasted below it can be seen that 94 customers who rated the service quality to be neutral are dissatisfied with the time taken for the loan to be sanctioned. If the time taken to sanction the loans is decreased, SBI can considerably increase the service quality provided to the customers.

N.R. Institute of Business Management, GLS-MBA

Another co-relation is between service quality and ease of transaction at the SBI. Following can be found out by the analysis:

Service_quality * Transaction Crosstabulation Count Transaction Extremely Dissatisfactory Service_quality Very Poor Poor Neutral Good Excellent Total 3 1 1 2 0 7 Dissatisfactory 7 8 32 14 3 64 Neutral 1 15 78 28 4 126 Satisfactory 1 2 103 172 25 303 Total 12 26 214 216 32 500

Chi-Square Tests Asymp. Sig. (2Value Pearson Chi-Square Likelihood Ratio N of Valid Cases 160.092a 124.100 500 df 12 12 sided) .000 .000

a. 9 cells (45.0%) have expected count less than 5. The minimum expected count is .17.

N.R. Institute of Business Management, GLS-MBA

As can be seen from the Chi-Square tables, there is a considerable co-relation between Service quality and ease of transaction. If the transaction processes are not easily carried out, the service quality will decrease. So, on the part of SBI, the service quality will be improved only when the transaction will be made simpler and easier for the customers.

It can be observed from the above graph easily, that service quality will depend a lot on how simple the transactions will be carried out, and also on how comfortable would the transaction process be.

N.R. Institute of Business Management, GLS-MBA

Competitors for SBI according to the customers preference

In the questionnaire, it was asked to the customers, which other banks had they approached for the same loan. Also, in case if given an opportunity which would the bank be selected by them in place of SBI. From the graph, it is clear that first choice for the customers would be HDFC, followed by ICICI, Axis, Bank of Baroda, and so on.

N.R. Institute of Business Management, GLS-MBA

If required, would you take any further loans from SBI?

The customers were asked, if required to take a loan further, would they prefer SBI for their loans. And it was found that 85% of the customers will select SBI for their next loans. Would you recommend SBI to your friends/relatives?

Customers were asked, if their friends/relatives were supposed to take up a loan, would they recommend SBI to their friends/relatives to avail their loans. And it was seen that 86% people will positively respond to the same. Demographic Analysis

Loan taken by customers and their occupation Loans are Males.

Majority of the customers of SBI

Many of the customers of SBI, belong to the service class. Most of them have availed the Home loans followed by Car loans. Most of the customers of SBI Education loans are students.

N.R. Institute of Business Management, GLS-MBA

Most of the Customers are ServiceMajor customers of SBI Loans, are Class people, a very 30-40. It is the in the age group of small percentage of Self-employed people target customer group SBI can prefer SBI loans. convince more, also SBI can make efforts to target the age group 20-30.

Age of the customers and the loan taken by them

As can be seen from the above graph, majority of the customers that SBI Loans has, belong to the age group of 30-40. The most promising age group for SBI is 20-30 years, who can be attracted for further loans, and also other non-existing customers of the same age group can be attracted towards SBI Loan schemes.

PROJECT Findings:
From this project it is found that SBI advance product having the 1st place in the market
at Bhubaneswar, 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 Bhubaneswar 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.

N.R. Institute of Business Management, GLS-MBA

Most customers are shifted from other banks advance product to SBI because of
hidden charges, high interest rate, less repayment period.

Government employees are more concern than private employees for advance product.

REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT:


ATTRACTIVE INTEREST RATES TRANSPARENCY SIMPLE & FAST PROCESSING LONGER REPAYMENT PERIOD

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.

N.R. Institute of Business Management, GLS-MBA

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.
( Namrata Das )

Education loan should be providing to private college also which is not under AICTE or
any kind of University. ( Pinaki Bal ) SBI should take steps to solve customer problems immediately. ( Gopinath Mahapatra )

Agents should be trained, well educated & proper trained to convince the people about
different advance product.

N.R. Institute of Business Management, GLS-MBA

(P.Anish Nath)

Loan sanction date should be according to customer convenient.


(Joytirmaya Behera)

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 Bhubaneswar. SBI is in 1st position having large number of customers & providing good services to them. The bank has a wide customer base, so the bank should concentrate on this to retain these customers.

N.R. Institute of Business Management, GLS-MBA

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.

N.R. Institute of Business Management, GLS-MBA

N.R. Institute of Business Management, GLS-MBA

ANNEXURE

Dear sir/madam, As you know we are a customer-centric bank, we are conducting a survey to understand customer preferences and their satisfaction level with the services provided by our bank. It would be really grateful if you could spare some time to fill up this questionnaire and oblige us with your valuable feedback. 1. What services have you availed from SBI? Home loan loan Personal

N.R. Institute of Business Management, GLS-MBA

Education loan ______ Car loan 2. Since how many years you have been a customer of SBI?

others

< 1 year 5-7 years 1-3 year(s) >7 years 3.5years 3. How will you rate the following factors associated while dealing with SBI? (Rate on a scale of 1 to 5) Response of employees Dealing in comfortable language arrangement Location from house you/Inquiry counter Drinking water locating personnel 1. Please tick as appropriate: Extreme Satisfact ly ory satisfact ory Ease of transaction Process clarity Rate of interest Documentatio n Time duration Knowledge of staff Prepayment charges and processing fees N.R. Institute of Business Management, GLS-MBA Neutr al Dissatisfac Extremely tory dissatisfact ory Parking seating May I help Ease of

Additional/hid den cost After sales service 2. What option did you select for repayment? PDC ECS

other

3. Have you ever received any communication from bank after taking loan? Yes If yes, please tick the purpose No For further PDC For option of ECS For promoting any product/service 4. Would you like to continue receiving such communication from the bank? Yes No 5. If due to whatsoever reason, you have been unable to make your repayments on time, how is the reminder given to you? (Rate on a scale of 1 to 5) Tick Rate Tick Rate SMS Letter Email Phone call 6. Would you prefer to have the loan process to be done online? Yes If yes, Rank following choices: Application check Submission Schedule 7. Rate the overall service quality for the current loan that you have obtained from SBI 1 2 3 4 5 Poor Neutral excellent

No Status

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8. For this particular loan which other bank(s) did you consider/approach? ICICI bank BOI HDFC BOB Axis Bank Central bank of India PNB Others 9. For any further finance requirements, which bank will you consider? (Rank according to your preference) SBI BOI ICICI bank BOB HDFC Axis bank PNB Others_______ 10.If required, would you take any further loans from SBI? Yes No 11.Would you recommend SBI to your friends/relatives? Yes

No

12.Your feedback is most valuable, kindly share yours comments, suggestions for improvement and complaints on the service quality delivered and work of SBI: __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ ____________ Personal information: Name: ___________________________________ Gender: ______ Age: <20 20-30 30-40 40-50 >50 Area: __________ Occupation: self employed service others ___________ Annual income: <100k 100k-300k 300k-500k 700k >700k Education level: Primary SSC HSC Graduate Post graduate N.R. Institute of Business Management, GLS-MBA

500k-

No of dependents: ____ Contact number: _______________

Thank you for your valuable time and concern. We will try our best to improve the service quality and implement necessary changes required for your betterment.

____________________ (Signature)

N.R. Institute of Business Management, GLS-MBA

Bibliography:
Internet:

www.rbi.org.in www.sbi.com www.sbi.co.in www.bnet.com

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