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The Project work is field which uses tools and techniques to transfer subjectivity in the environment into objectives, also the findings of the research, when applied show results, which can be measured and evaluated so there is feedback this is what makes it a dynamic activity. This survey is an analytical study of a different facts of the product. The focus is given on the Brand profile. This project entitled Summer Training of STATE BANK OF INDIA, is for the partial fulfillment of B.B.A. (Hons) Degree 15TH Batch. The idea behind this project is to give practical knowledge and to make them to face real life situation. The project survey is commonly used for the collection from the respondents through questionnaire. In this method statistical techniques have been used systematically. This project survey is not only with my own efforts but also that of others.
ACKNOWLEDGEMENT
I would like to whole hearty thank and express my sincere gratitude to Prof. Y.S. Thakur Head of the Department of Faculty of Management Studies Dr. Hari Singh Gour Central University, Sagar for suggesting me this problem and for giving an insight in dealing with the subject I am highly obliged to Mr. M.K. Sahu Manager State Bank of Indian, Branch Gujrati Bazar Sagar. Miss Shakuntala Yadav Lecturer, Mrs Jyoti Pandey, Mr. Ankur Randhelia, , Miss Mayuri Jain, Dr. Shree Bhagwat, Mr. Himanshu Katare Mr. Ankur Gautam, Miss Devagya Shrivastava, , Mr. Girbal singh Lodhi, and All Faculty member for guiding me in various espects of this project. I express my gratitude to all the customers who very kindly discussed various aspects of this study and provided useful suggestions for discussing various problems. Lastly, I Must express my gratitude to all the elders of the family and citizen of the city who blessed me in course of discussion. I also extend my sincere thanks to my family and my friends for their encouragement and support. RAJEEV TUNDELE BBA (HONS.)5th SEM 15TH BATCH
CERTIFICATE
Student of
B.B.A. (Hons) 15th Batch, Department of Business Management Dr. Hari Singh Gour Central University, Sagar (M.P.) Has diligently worked on the Project Report of the Summer Training of STATE BANK OF INDIA. He has done this Work under My Guidance and Supervision. This project work is original and not submitted earlier for the award of any degree or associate ship of any other University. During this study he made meticulous efforts for its completion. I wish him all the best in this sincere endeavors for a bright and successful future.
DECLARATION
I hereby declare that the project work entitled Summer Training STATE BANK OF INDIA submitted to the Department of Business Management Dr. Hari Singh Gour Central University, Sagar (M.P.), is a record of an original work done by me under the guidance of Mr. M.K. Sahu Branch Manger (SBI) Sagar Branch. I also ensure that this work done by me is purely original and is my own creativity. PLACE: DATE:
KRISHNA KANT SAHU BBA (HONS.)5th SEM 15TH BATCH Enrollment no.: Y1018050013
CONTENTS
Acknowledgement Declaration Certificate Chapter 1 1.1 Introduction to Banking 1.2 Introduction to State Bank of India 1.3 State Bank Today 1.4 State Bank Group 1.5 Retail Banking 1.6 Vision, Mission and Values Chapter 2 RESEARCH METHODOLOGY Chapter 3 Interpretation of PIE and BAR chart. Chapter 4
Introduction to Banking
Customers are broadly classified into two: Personal Customers: Individuals having accounts singly or jointly (including minors)
Non Personal Customers: Non individual customers like Proprietary
concerns, Partnerships, Companies, Trusts, Associations, Clubs, Societies, Institutions, Govt. Departments, NGOs, SHG etc. Accounts are broadly classified into two: Customer accounts (external accounts) : Deposit accounts (Savings Bank, Current Account etc), Loan Accounts (Demand Loan, Term Loan etc) and Contingent accounts (Bank Guarantee etc) Office accounts. (Internal accounts): Cash Balance accounts, fixed assets account, Drafts account, Sundry Deposit account, Interest account etc. Basic Deposits Account:
Savings Bank : Running account for saving with restriction in
number of withdrawal Current Account: Running account without restriction on number of withdrawals Term Deposit : Deposit of an amount for a fixed period where interest is paid monthly/Quarterly Special Term Deposit : Deposit of an amount for a fixed period where interest is compounded (Capitalized) and paid on maturity.
a fixed period.
Types of Loan Account: Overdraft Demand Loan Term Loan Cash Credit
Overdraft:
A Current account when permitted to overdraw (allowing withdrawal
more than deposited or without deposits ) becomes an overdraft account Can be operated by cheque, ATM, INB A type of advance of temporary nature/ to valued clients sometimes against Term Deposit, NSC etc. A running account where further withdrawals (debits) can be permitted as and when deposits (credits) come. Demand Loan: Basically an advance payable on demand. Payment in installments also generally allowed. Given against Bank deposits, NSCs, Insurance policies Gold loans and Pension Loans are given as Demand loans Only one Debit allowed for disbursement. Cannot be operated by cheque & ATM. Term Loan: Loan payable as per pre-determined installments over a fixed term. Extended for acquisition of assets like house, car, land, building, Plant & Machinery etc. Installments are to be paid out of the income of the person in case of Personal Segment loans
Installments are to be paid out of the income of the activity financed in case of non-personal segment loans.
Cash Credit: An advance facility for financing the working capital needs of commercial activities. A running account on the lines of Overdraft. An account where all the receipts and payments of the activity on account of day-to-day operations are expected to be reflected. Extended against the stocks and receivables of the unit. (Stocks: raw materials, semi finished goods, finished goods etc, Receivable means money to be received towards sales).
Security and Margin: The physical or financial asset for / against which the advance is made is referred as security. A car is a security for which a car loan is given. Assets acquired out of bank finance is called primary security. Any additional security offered by the borrower is called collateral. However, in CBS parlance all securities are referred as collaterals. The amount contributed by the borrower to the project cost / the percentage value of the assets owned by him is referred as margin.
Charge: An asset offered to the creditor (who lends the money) becomes a security only if a legally enforceable interest is created in his favour. This process is called the creation of Charge. Lien, Pledge, Hypothecation and Mortgage are different types of charges applicable to different types of securities.
account without Clearing: Transfer transactions where funds are exchanged with other banks through clearing
the British India, established under the sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the modern banking scenario in India, until when they were amalgamated to form the Imperial Bank of India, on 27 January 1921.
An important turning point in the history of State Bank of India is the launch of the first Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in general and the rural sector of the country, in particular. Until the Plan, the commercial banks of the country, including the Imperial Bank of India, confined their services to the urban sector. Moreover, they were not equipped to respond to the growing needs of the economic revival taking shape in the rural areas of the country. Therefore, in order to serve the economy as a whole and rural sector in particular, the All India Rural Credit Survey Committee recommended the formation of a statepartnered and state-sponsored bank. The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This resulted in making the State Bank of India more powerful, because as much as a quarter of the resources of the Indian banking system were controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries. The State Bank of India emerged as a pacesetter, with its operations carried out by the 480 offices comprising branches, sub offices and three Local Head Offices, inherited from the Imperial Bank. Instead of serving as mere repositories of the community's savings and lending to creditworthy parties, the State Bank of India catered to the needs of the customers, by banking purposefully. The bank served the heterogeneous financial needs of the planned economic development.
Bank Name : STATE BANK OF INDIA State Name : MADHYA PRADESH District Name : SAGAR Branch : GUJRATI BAZAR SAGAR IFSC Code : SBI0030179 City : SAGAR Address : 177, NEAR MANOHAR TALKIES ,GUJRATI BAZAR Contact 07582-223865,229881 Number : WebSite : WWW.STATEBANKOFINDIA.COM
AGASOD BANDA BINA DEORI-(SAUGOR) GARHAKOTA GUJRATI-BAZAR-SAGAR JAORA MAKRONIA-SAGAR MEDICAL-COLLEGE-BRANCH-SAGAR RAHATGARH SAGAR-MAIN SEMADHANA SIRCHOPI-(BPSCL) STATION-ROAD-BINA
BADA-BAZAR-SAGAR BANDRI CIVIL-LINES-SAUGOR DHANA-SAGAR GOPALGANJ-SAGAR JAISINAGAR KHURAI MANDI-BAMORA MRC-SAGAR REHLI SAUGOR-UNIVERSITY-SAGAR SHAHGARH SME-SAUGOR
(In percentage terms) BALANCE SHEET AS AT 31ST MARCH 2009 Yield on Advances (Domestic) 9.90 Cost of Deposits (Domestic) 5.59 Net Interest Margin 3.07 Gross NPA Ratio 3.04 Net NPA Ratio 1.78 Capital Adequacy Ratio 13.47 Return on Average Assets 1.01
AS AT 31ST MARCH 2009 No. of Branches No. of Foreign Offices No. of Branches on CBS No. of employees No. of ATMs
The Bank handles almost the entire gamut of financial services. It is a financial supermarket.
The Bank extends banking services to: Corporate Sector SMEs Rural sector, especially Agriculture and allied activities Retail sector, i.e., Personal Segment The Bank has designed both Deposits as well as Advances products for specific segments as per their requirements. The loans range from Rs.100/- to say, Rs. 10,000 crores.
ASSOCIATE BANKS State Bank of India has the following 6 Associate Banks (ABs) with controlling interest ranging from 75% to 100%:
State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of INDORE (SBIN) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Travancore (SBT)
The six ABs have a combined network of 4596 branches in India, which are fully computerized and on CBS.
The ABs has 1070 ATMs, which are networked with SBI ATMs,
State Bank of India (Canada) SBI International (Mauritius) Ltd. State Bank of India (California) Indian Ocean International Bank Ltd. Commercial Bank of India LLC, Moscow PT Bank Indo Monex
State Bank of India has the following Non-Banking Subsidiaries / Joint Ventures:
SBI Capital Markets Ltd. (SBICAP) SBICAP Securities Ltd. (SSL) SBICAPS Ventures Ltd. (SVL) SBICAP (UK) Ltd. SBI Funds Management Pvt. Ltd. (SBIFMPL) SBI Factors & Commercial Services Pvt. Ltd. (SBIFACTORS) SBI DFHI Ltd. SBI Cards & Payment Services Pvt. Ltd. (SBICSPL) SBI Life Insurance Company Ltd. (SBILIFE) Global Trade Finance Ltd. (GTFL) SBI Mutual Funds Trustee Company Pvt. Ltd.
OTHERS
In addition to these, there are other Subsidiaries / Jointly Controlled Entities such as: SBI Commercial and International Bank Ltd. SBICAP (UK) Ltd. SBI Funds Management (International) Ltd. GE Capital Business Process Mgmt. Services Pvt. Ltd. C-Edge Technologies Ltd.
All these together constitute this mammoth organization the STATE BANK.
RETAIL BANKING
Retail banking refers to banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth or it is a typical mass-market banking where individual customers use local branches of larger commercial banks. Retail Banking has wider connotation and is not the same as that of retail lending. Retail Banking refers to the efforts of the bankers to reach up to the customers on both fronts of the balance sheet i.e., Liabilities side as well as Assets side. Under the liabilities side, we have deposits. Under the assets side, we have credit schemes of the various banks. The job of the banker has become very difficult in this segment too. Bankers today are offering various sops to attract the potential customers.
Personal banking, i.e. banking products and services for consumers including current accounts (and related services such as ATM, direct debit and credit transfers), sight deposits and other savings accounts, credit lines/overdrafts (no limits on individual asset size) and consumer loans; business banking, i.e. banking services for enterprises up to a maximum turnover of EUR 10 million annually and including services such as current accounts, term loans and credit lines. This report, following industry and literary usage, will also use the term SME banking or SME customers for this sub-segment. In carrying out the inquiry and, for instance, addressing comprehensive questionnaires to banks in the EFTA States, the Authority has not applied a rigid definition within these general parameters. This approach has allowed for individually flexible definitions, for example by accepting the banks own definition of SME business even where they may be narrower in scope.
ii) Term loans - a loan account operating for a specified time period, which an SME uses to finance its business expenditure. iii)Credit lines an open-ended facility which incorporates the credit element of a loan enabling SMEs to draw down finance and the flexibility of a current account for making and receiving payments. In addition to these three sets of products, the sector inquiry has also taken some account of other products for SMEs such as leasing (which involves a banks paying for part or all of the cost of a capital asset for an SME and the bank then leases this asset to the SME). Together with the retail banking products specified above, the sector inquiry also analyses payments systems, since they form the core of money transmission services in personal and SME banking, and are significant structures within the retail banking sector as a whole. Retail banking is much more than as opportunity to addressing dwindling margins. It is an imperative to preserve profits and market positions. Customers now have many more personal financial options, a growing credit culture, a willingness to switch between financial services providers, and a demand for lower interest rates. As they witness these trends, banks realize that they cannot remain passive. The new private sector banks are making inroads in the markets they serve, while competition from non-banks is growing. In respect, older institutions need to revamp their distribution capabilities, customer management capabilities, operating culture, compensation system and operations processing.
However, most US banks have thin margins or low market shares in these businesses mitigating this impact, says the report made available to the Economic Times. The rating agency is skeptical of banks ability to generate substantial incremental revenues from cross-selling financial products to existing customers via the net. Banks have to maintain a comprehensive and effective web based capability to maintain their competitive position, cautions moodys. The need for customers to take frequent physical receipts, make convenient physical receipts, make convenient physical delivery of cheques using ATMs, inhibition towards paying ATM charges for using another banks ATM network by the consumer and time consuming, difficult and disruptive nature of switching accounts also contribute to the stickiness of retail deposits. With low bank fees for individual transactions and relatively small bank deposits, the opportunity cost in terms of interest income for customers is not material where the deposits are not large. Banks offer convenience and choice and the web-based channels of banks have reported rapid growth in the number of customers by retaining current customers. According to moodys a survey indicated that 35 per cent of Internet banking customer disconnect because they dont find it convenient. Customers prefer to use a variety of channels to conduct their banking which is why it remains to be seen whether a business model based solely on internet
banking will generate adequate returns and sustain long term competition against conventional banking systems. The advent of the internet could, however have a powerful effect on banks acquisition strategies by creating uncertainty about the value of purchasing large branch networks, the study says. For some banks, however, the Internet could facilitate an increase in fee income by generating fees from Internet service arrangements like bill presentment and clearing. However, if smart cards or stored value cards or other electronic cash substitute gain popularity, alternatives could become more attractive to customers. On the other hand, banks might be able to reduce costs of servicing the retail customers by moving them over into a paperless environment. Banks could introduce various incentives to the persuade customers to forego paper statements for the basic savings account and credit card, says moodys.
Again, quality of the product and responsive strategies for distribution will also have a link to price. Efficiencies on this front will be the next item on your report card. Through innovation in production and delivery and cost reduction strategies, the price to the customer will have to be at maximum benefit. The intelligent customer will be ruthless with any price distortions, which as a consequence of inefficiencies or market exploitation his cost benefit analysis will not allow for these variables. Would you prefer a product, which (hopefully) is never expected to need post sale service or one which offers the best after sale service if required ? Clearly, the relationship with the customer starts with the transaction, does not and with it. Organisation we have to give equal importance to cost sale needs of customers as the pitch made prior to the sale. Technology will perhaps be the single largest driver of this detail thrust. The entire strategy will evolve around the absolute ability of the organisation to be at the cutting as edge of technology. We will have to invest in technology far ahead of immediate needs and be able to anticipate the future direction at a pace we are perhaps not used to. Being able to keep abreast, but more importantly, being able to recognize the immense potential that technology provides at all stages in the retail chain will be of paramount importance. To leverage, exploit and link technology to your business will be the greatest challenge of the new millennium and I am convinced that the retail war will be won and lost on this one aspect, purely because technology increasingly we influence on the entire chain in a retail business cycle. Above all these, I would list attitude towards customer as the single point basis on determining the winner of the race. Attitude to the customer will influence
all the areas we have discussed and will ensure excellence in each one of them. It is an intangible, it is not prescribed in a manual nor is it a quantifiable item in the balance sheet, but an organizations attitude to the customer will be the basis determinant of success for any retail operation. There are interesting and challenging times ahead the future promises a lot but will also make extraordinary demands. The customer will be the most important aspect of your business and ultimately the winner of the retail war.
(h) The right systems and the right architecture needs to be put in place first.
Challenges:
Sustaining Customer loyalty NPA reduction & Fraud prevention Avoiding Debt Trap for customers Bringing Rural masses into mainstream banking
What is Vision?
The Vision acts as a source of constant inspiration, a guiding light for the future. The Vision statement presents a picture of the desirable future.
What is Mission?
The mission puts the vision in action. It is what you do to actualize your vision: your plans, your strategies, your targets, your numbers, and your activities. It concentrates on the present; it gives us an insight into the effort and direction required to achieve the desired future.
.Mission statement helps we Prioritize what is important to the organization. Provides an inspiring statement of our ideals. a shared and compelling picture of the future that everyone can believe in and work towards achieving as a team.
Values are the basis on which you shape your actions so that your vision can be reached.
MISSION:
We will be prompt, polite and proactive with our customers. We will speak the language of young India. We will create products and services that help our customers achieve their goals. We will go beyond the call of duty to make our customers feel valued. We will be of service even in the remotest part of our country. We will offer excellence in services to those abroad as much as we do to those in India. We will imbibe state of the art technology to drive excellence.
VALUES :
We will always be honest, transparent and ethical. We will respect our customers and fellow associates. We will be knowledge driven. We will learn and we will share our learning. We will never take the easy way out. We will do everything we can to contribute to the community we work in. We will nurture pride in India.
Research methodology
Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject in question. The objective is to examine all the issues involved & conduct situational analysis. The methodology includes the overall research design, sampling procedure & fieldwork done & finally the analysis procedure. The methodology used in the study consistent of sample survey using both primary & secondary data. The primary data has been collected with the help of questionnaire as well as personal observation book, magazine; journals have been referred for secondary data. The questionnaire has been drafted & presented by the researcher himself.
Sample Size: Sample of 50 people was taken into study, and their data was collected Sampling Technique: To study the Project, a Simple Random Sampling technique is used. Data Collection: Collection of data is done by Secondary Data & through Questionnaire i.e., Primary data was collected through Questionnaire.
Data Analysis: After data collection, Im able to analyze customers views, ideas and opinions related to Advance Product and about SBI Advance Product and from this, SBI will come to know the customer requirements.
Data Interpretation: Interpretation of data is done by using statistical tools like Pie diagrams, Bar graphs, and also using quantitative techniques (by using these techniques) accurate information is obtained.
Classification & tabulation of data: The data thus collected were classified according to the categories, counting sheets & the summary tables were prepared. The resultant tables were one dimensional, two dimensional.
Statistical tools used for analysis: Out of the total respondents, the respondents who responded logically were taken into account while going into statistical details & analysis of data. The tools that have been used for analyzing data & inference drawing are mainly statistical tools like percentage, ranking, averages, etc.
As per questionnaire and market surveys I have find out different responses from different people. According to their responses I analyze the findings and draw certain remarks.
TABLE-I
The given below BAR graph shows the response of 100 customer. SERVICES EXPECTED FROM SBI QUICK RESPONSE GOOD CUSTOMER RELATION 25 EXTRA FACILITY FOR EXISTING CUSTOMER 38 37
INTERPRETATION
Out of 100 customers, 38 of them said that they expect QUICK RESPONSE from the SBI bank, 37 said they expect GOOD CUSTOMER RELATION and 25 customers said that they expect EXTRA FACILITY FOR EXISTING CUSTOMER.
TABLE-II
The given below Bar chart shows the SATISFACTION LEVEL OF CUSTOMER AFTER AVAILING LOAN SATISFACTION AVAILING LOAN SATISFIED NORMAL DISSATISFIED AFTER 42 34 24
INTERPRETATION
Out of 100 customers 42 were found SATISFIED after taking loan from SBI , 34 Customer were NORMALY satisfied from SBI and 24 were DISSATISFIED because of interest charged, and behavior of the employee.
TABLE-III
The given below Bar chart shows the CUSTOMER WANTS TO TAKE ANOTHER LOAN FROM SBI CUSTOMER WANTS TO TAKE ANOTHER LOAN FROM SBI YES NO 68% 32%
70 60 50 40 30 20 10 0 1 2 YES NO
Interpretation:
Out of 100 customers, 68 would like to take another loan from SBI but 32 would not like to take another loan from SBI.
TABLE-IV
The given Bar graph shows THE INFLUENCING FACTOR FOR TAKING LOAN FROM SBI
INFLUENCING FACTOR FOR LOAN FROM SBI ADVERTISEMENT FRIENDS EASY AVAILABILITY OF LOAN TRUST 26 20 22 32
Interpretation:
Out of 100 customers, 32 said trust, 26 said advertisement,22 said easy availability and rest 20 said friends and relatives about the influence factor to taking loan from SBI.
TABLE-V
The given Pie chart shows the processing procedure while availing loan:
28%
30%
42%
Interpretation:
Out of 100 customers 42 peoples said good, 30 people said excellent and rest 28 people said average about the processing procedure while availing the loan.
TABLE-VI
The given Pie chart shows the co-operation of the bank employees in processing and helping in documentation:
24%
21%
55%
Interpretation:
Out of 100 customers 55 peoples said good, 21 said excellent and 24 peoples said average about co-operation of employees in processing and documentation.
TABLE-VII
The given Pie chart shows the interest rate charged upon the loan available:
15%
Interpretation:
Out of 100 peoples 49 said averages, 36 said good and 15 said excellent about the interest rate charged upon the loan available.
CONCLUSION
SBI is providing good services to the clients during sanctioning the loan. They cooperate with the clients to given maximum benefits. Different banks offer same product but services only aspect, which differentiate banks products. Services through corporate banking, personal banking SBI reaches among the maximum number of customers across the country and More than average number of customers were found satisfied by the offered services of SBI.
FINDINGS
1) Customers were satisfied from the quick response and good customer relationship. Customer found employees of SBI very helpful and cooperative.
2)
3)
Customer are more influenced for taking loan from SBI because of trust, customers have on SBI.
4) Customer found the procedure of availing loan simple and hassle free.
RECOMMENDATION
Their should be a separate section to deal with the customer queries and other responses.
When a customer comes to know about the product one should say more about its value and benefits.
Agents should be trained, well educated & proper trained to convince the
people about different advance product.
QUESTIONNAIRE
2) Profession:
A)18-30 yrs. B)31-40 yrs. C)41-50 yrs. D)51-60 yrs. 4) Annual Income (in Rs.):A) 60000-200000 Above 1000000 b) 200000-400000 c) 400000-1000000 d)
5) What kind of service or services do you expect from SBI? A) Quick Response C) Extra Facility for Existing Customer B) Good Customer Relation
6) What influence you at taking loan from SBI? A) Advertisement C) Easy availability loan B) Friend/Relative D) Trust
7) How do you find the processing procedure while availing the loan? A) Excellent B) Good C) Average
8) How do you find the cooperation of the bank employees in processing and helping you with documentation?
A) Excellent
B) Good
C) Average
9) How do you find the interest rate charged upon the loan available? A) Excellent B) Good C) Average
10) Would you like to take another loan from SBI in future? A) Yes B) No
11) Your overall level of satisfaction with SBl: A) Satisfied B) Normal C) Dissatisfied
THANKS
Bibliography
Banking Law and Practices (S.N.Maheswari)
weblography www.sbi.co.in
ON
SUBMITTED TO
SESSION 2010-12
ASST. PROFESSOR
DEPARTMENT OF BUSINESS STUDIES BABULAL TARABAI INSTITUTE OF RESEARCH & TECHNOLOGY SAGAR (M.P.)