archi finl (2)
of 54
Transcript of archi finl (2)
-
7/30/2019 archi finl (2)
1/54
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 offorecasting concepts and techniques which shows the analysis
-
7/30/2019 archi finl (2)
2/54
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.
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 byfigures and data wherever necessary with a view to assist the
reader in developing a clear cut understanding of the topic.
-
7/30/2019 archi finl (2)
3/54
Executive Summary
In the growing global competition, the productivity of any
business concern dependsuponthe beh avioral aspec t of consumers . This topic d
ea ls wi th the custome rs percept iontowards other
Advance Product from SBI credit cards at Bhubaneswar. This
project reportcontains 5 different chapters. The report begins
with the introduction to company, its areaof operation, its
organization structure, its achievements, etc.The second
chapter is the introduction to the Advance Product whichgives a brief idearegarding ADVANCE PRODUCT
o f S B I M A I N B R A N C H , B B S R w h e r e t h e p r o j e c
t isundertaken . It also contains the objectives and limitationsof the project.The third chapter, methodology adopted in
preparing this report is mentioned. It coversthe sample
procedure, types of data used and the data collection
method.The fourth chapter comprehensive coverage offorecasting concepts and techniques which shows the analysis
of data through tabulation, computation and graphical
representationof data collected from survey.The fifth chapter deals
with the findings , suggestion & conclusion part which is very
much important after analysis is made.As we know that only
analysis and conclusion is not the end of a research, so in the
sixthchapter the recommendation part is covered which aremade after a depth study of theanalysis part of thesis.In
each of the five chapters as described above, every
chapter has been scheduled in a ma n n e r s o
a s t o e n a b l e t h e r e a d e r t o
a p p r e c i a t e t h e c o n t e n t s e a s i l y . T h e r e p o r t i s s up
ported by figures and data wherever necessary with
a view to ass is t th e read er in developing a clear cut
understanding of the topic
OVERVIEW
-
7/30/2019 archi finl (2)
4/54
State Bank of India is the largest and one of the oldest
commercial bank in India, in existencefor more than 200 years.
The bank provides a full range of corporate, commercial and
retailbanking services in India. Indian central bank namelyReserve 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.646bnwith the public holding (other than promoters) at
40.3%. SBI has the largest branch and ATM network spread
across every corner of India. The bank has a branch network of
over 14,000branches (including subsidiaries). Apart from
Indian network it also has a network of73overseas offices in 30countries in all time zones, correspondent relationship with
520International banks in 123 countries. In recent past, SBI has
acquired banks in Mauritius,Kenya and Indonesia. The bankhad total staff strength of 198,774 as on 31st March, 2006.
Ofthis, 29.51% are officers, 45.19% clerical staff and
the remaining 25.30% were sub-staff. Thebank is listed on
the Bombay Stock Exchange, National Stock Exchange,Kolkata StockExchange, Chennai Stock Exchange and
Ahmedabad Stock Exchange while its GDRs arelisted on the
London Stock Exchange. SBI group accounts for around 25%
of the total businessof the banking industry while it accounts
for 35% of the total foreign exchange in India. Withthis type of
strong base, SBI has displayed a continued performance in the
last few years inscaling up its efficiency levels. Net InterestIncome of the bank has witnessed a CAGR of13.3% during the
last five years. During the same period, net interest
margin (NIM) of the bankhas gone up from as low as 2.9% in
FY02 to 3.40% in FY06 and currently is at 3.32%
Management
The bank has 14 directors on the Board and is responsible forthe management of theBanks business. The board in addition
to monitoring corporate performance also carries outfunctions
such as approving the business plan, reviewing and approving
-
7/30/2019 archi finl (2)
5/54
the annual budgetsand borrowing limits and fixing exposure
limits. Mr. O. P. Bhatt is the Chairman of the bank. Thefive-
year term of Mr. Bhatt will expire in March 2011. Prior to this
appointment, Mr. Bhatt wasManaging Director at State Bank ofTravancore. Mr. Bhatt has more than 30 years of experience in
the Indian banking industry and is seen as futuristic leader in
his approachtowards technology and customer service. Mr.
Bhatt has had the best of foreign exposure inSBI. We believe
that the appointment of Mr. Bhatt would be a key to SBIs
future growthmomentum. Mr. T S Bhattacharya is
the Managing Director of the bank and known for hisvastexperience in the banking industry. Recently, the senior
management of the bank has beenbroadened considerably. The
positions of CFO and the head of treasury have beensegregated,and new heads for rural banking and for corporate development
and new businessbanking have been appointed. The
managements thrust on growth of the bank in terms of network
and size would also ensure encouraging prospects in time tocome.
HISTORY OF STATE BANK OF INDIA
The roots of the State Bank of India rest in the first decadeof 19th century, when the B ank of C a lcu tt a, later renamedthe B ank of B enga l, was established on 2 June 1806. TheBank of Bengal and two other Presidency banks, namely, theB ank of B o m bay (incorporated on 15 April 1840) and the
B ank of Mad r as (incorporated on 1 July1843). All three Presidency banks were incorporated as jo ints tock co m pan ie s, and were the result of the r oyal cha rt e r s.These three banks received the exclusive right to issue papercurrency in 1861 with the Paper Currency Act, a right they
http://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Royal_charterhttp://en.wikipedia.org/wiki/Royal_charterhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Royal_charterhttp://en.wikipedia.org/wiki/Bank_of_Calcutta -
7/30/2019 archi finl (2)
6/54
retained until the formation of the R ese r ve B ank of I nd ia.The Presidency banks amalgamated on27 January 1921, and the reorganized banking entity took as
its name Im pe ri a l B ank of I nd ia. The Imperial Bank of Indiacontinued to remain a joint stock company.
Pursuant to the provisions of the State Bank of India Act(1955), the R ese r ve B ank of I nd ia, which is I nd ia's cen tr alban k, acquired a controlling interest in the Imperial Bank ofIndia. On 30 April 1955 the Imperial Bank of India becamethe State Bank of India. The G ov t.of I nd ia recently acquiredthe Reserve Bank of India's stake in SBI so as to remove anyconflict of interest because the RBI is the country's bankingregulatory authority
Offices of the Bank of Bengal
In 1959 the Government passed the State Bank of India (SubsidiaryBanks) Act, enabling the State Bank of India to take over eight formerState-associated banks as its subsidiaries. On Sept 13,
http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/Govt._of_Indiahttp://en.wikipedia.org/wiki/Govt._of_Indiahttp://en.wikipedia.org/wiki/Govt._of_Indiahttp://en.wikipedia.org/wiki/Govt._of_Indiahttp://en.wikipedia.org/wiki/Sept_13http://en.wikipedia.org/wiki/Sept_13http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/Govt._of_Indiahttp://en.wikipedia.org/wiki/Govt._of_Indiahttp://en.wikipedia.org/wiki/Sept_13 -
7/30/2019 archi finl (2)
7/54
B ank of Sau r ash tr a, one of its Associate Banks, merged with StateBank of India.
SBI has acquired local banks in rescues. For instance, in 1985, itacquired Bank of Cochin in K e r a la, which had 120 branches. SBIwas the acquirer as its affiliate, S ta te B ank of T r avanco re, alreadyhad an extensive network in Kerala.
ASSOCIATE BANKS OF STATE BANK OF INDIA
There are six associate banks that fall under SBI, and together thesesix banks constitute the State Bank Group. All use the same logo of ablue keyhole and all the associates use the "State Bank of" namefollowed by the regional headquarters' name. Originally, the thenseven banks that became the associate banks belonged to p ri nce lys ta tes until the government nationalized them between October, 1959and May, 1960. In tune with the first Five Year Plan, emphasizing thedevelopment of rural India, the government integrated these banksinto State Bank of India to expand its rural outreach. There has been a
http://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/Indian_Princely_States -
7/30/2019 archi finl (2)
8/54
proposal to merge all the associate banks into SBI to create a "megabank" and streamline operations. The first step along these linesoccurred on 13 August 2008 when State Bank of Saurashtra mergedwith State Bank of India, which reduced the number of state banksfrom seven to six. Furthermore on 19th June 2009 the SBI boardapproved the merger of its subsidiary, S ta te B ank of I ndo r e, withitself. SBI holds 98.3% in the bank, and the balance 1.77% isby individuals, who held the shares prior to its takeovergovernment.
ownedby the
The acquisition of State Bank of Indore will help SBI add 470branches to its existing network of 11,448. Also, following theacquisition, SBIs total assets will inch very close to the Rs 10-lakh
crore mark. Total assets of SBI and the S ta te B ank of I ndo r e stood atRs 998,119 crore as on March 2009.
GROWTH OF STATE BANK OF INDIA
State Bank of India has often acted as guarantor to the I nd ianG ove r n m en t, most notably during C hand r a Shekha r's tenure as P rim eM in is ter of I nd ia. With 11,448 branches and a further 6500+ associatebank branches, the SBI has extensive coverage. State Bankhas electronically networked all of its branches under Core
of IndiaBanking
System (CBS). The bank has one of the largest AT M networks in theregion. More than 8500 ATMs across India. The State Bank of Indiahas had steady growth over its history, though it was marred by theH a r shad Meh ta scam in 1992. In recent years, the bank has sought toexpand its overseas operations by buying foreign banks. It is the onlyIndian bank to feature in the top 100 world banks in theG lobal 500 rating and various other rankings
Fo rt une
http://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Chandra_Shekharhttp://en.wikipedia.org/wiki/Chandra_Shekharhttp://en.wikipedia.org/wiki/Chandra_Shekharhttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Automatic_Teller_Machinehttp://en.wikipedia.org/wiki/Automatic_Teller_Machinehttp://en.wikipedia.org/wiki/Harshad_Mehtahttp://en.wikipedia.org/wiki/Harshad_Mehtahttp://en.wikipedia.org/wiki/Harshad_Mehtahttp://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Chandra_Shekharhttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Automatic_Teller_Machinehttp://en.wikipedia.org/wiki/Harshad_Mehtahttp://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/wiki/Fortune_Global_500 -
7/30/2019 archi finl (2)
9/54
INTERNATIONAL PRESANCE OF SBI
The bank has 92 branches, agencies or offices in 32 countries. It has
branches of the parent in C o lo m b o, D haka, F r ank f u r t,Johannesbu rg, L ondon and environs, L os A nge le s,
H ong K ong,Ma le in the
Ma ld ive s, Musca t, N ew Y o r k, O saka, Sydney, and T okyo. Ithas offshore banking units in the B aha m a s,B ah r a in, and S ingapo r e,and representative offices in B hu tan and C ape T o w n.
SBI operates several foreign subsidiaries or affiliates. In 1990 itestablished an offshore bank, State Bank of India (Mauritius). It hastwo subsidiaries in North America, State Bank of India (California),
and State Bank of India (Canada). In 1982, the bank established itsCalifornia subsidiary, named State Bank of India (California), whichnow has eight branches - seven branches in the state of California andone in Washington DC which was recently opened on 23rdNovember, 2009. The seven branches in the state of California arelocated in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, SanDiego and Bakersfield. The Canadian subsidiary too dates to 1982and has seven branches, four in the greater T o r on to area, and three in
B riti sh C o lu m b ia.In N ige ri a, SBI operates as INMB Bank. This bank began in 1981as the Indo-Nigerian Merchant Bank and received permission in 2002to commence retail banking. It now has five branches in Nigeria.
In Nepal SBI owns 50% of Nepal SBI Bank, which has branchesthroughout the country. In Moscow SBI owns 60% of C o mm e r c ialB ank of I nd ia, with C ana r a B ank owning the rest. In I ndones ia itowns 76% of PT Bank Indo Monex.
State Bank of India already has a branch in Shanghaiopen one up in T ian ji n.[ 1]
and plans to
http://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Frankfurthttp://en.wikipedia.org/wiki/Frankfurthttp://en.wikipedia.org/wiki/Johannesburghttp://en.wikipedia.org/wiki/Johannesburghttp://en.wikipedia.org/wiki/Johannesburghttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Los_Angeleshttp://en.wikipedia.org/wiki/Los_Angeleshttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Malehttp://en.wikipedia.org/wiki/Malehttp://en.wikipedia.org/wiki/Maldiveshttp://en.wikipedia.org/wiki/Maldiveshttp://en.wikipedia.org/wiki/Muscat,_Omanhttp://en.wikipedia.org/wiki/Muscat,_Omanhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/wiki/Sydneyhttp://en.wikipedia.org/wiki/Sydneyhttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Bahamashttp://en.wikipedia.org/wiki/Bahamashttp://en.wikipedia.org/wiki/Bahrainhttp://en.wikipedia.org/wiki/Bahrainhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Cape_Townhttp://en.wikipedia.org/wiki/Cape_Townhttp://en.wikipedia.org/wiki/Torontohttp://en.wikipedia.org/wiki/Torontohttp://en.wikipedia.org/wiki/Torontohttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/w/index.php?title=Commercial_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Commercial_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Commercial_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Tianjinhttp://en.wikipedia.org/wiki/Tianjinhttp://www.forbes.com/afxnewslimited/feeds/afx/2007/11/21/afx4365862.htmlhttp://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Frankfurthttp://en.wikipedia.org/wiki/Johannesburghttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Los_Angeleshttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Malehttp://en.wikipedia.org/wiki/Maldiveshttp://en.wikipedia.org/wiki/Muscat,_Omanhttp://en.wikipedia.org/wiki/New_Yorkhttp://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/wiki/Sydneyhttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Bahamashttp://en.wikipedia.org/wiki/Bahrainhttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Cape_Townhttp://en.wikipedia.org/wiki/Torontohttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/w/index.php?title=Commercial_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Commercial_Bank_of_India&action=edit&redlink=1http://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Tianjinhttp://www.forbes.com/afxnewslimited/feeds/afx/2007/11/21/afx4365862.html -
7/30/2019 archi finl (2)
10/54
BOARD OF DIRECTOR OF SBI
Sr. No.
Name of Director Sec. of SBI Act, 1955
1.Shri O.P. BhattChairman
19(a)
2. Shri S.K. BhattacharyyaMD & CC&RO
19(b)
3.Shri R. SridharanMD & GE(A&S)
19(b)
4. Dr. Ashok Jhunjhunwala 19(c)
5. Shri Dileep C. Choksi 19(c)
6. Shri S. Venkatachalam 19(c)
7. Shri. D. Sundaram 19(c)
8. Dr. Deva Nand Balodhi 19(d)9. Prof. Mohd. Salahuddin Ansari 19(d)
10. Dr.(Mrs.) Vasantha Bharucha 19(d)
11. Dr. Rajiv Kumar 19(d)
12. Shri Ashok Chawla 19(e)
13. Smt. Shyamala Gopinath 19(f)
-
7/30/2019 archi finl (2)
11/54
JOURNEY AND VISION OF SBI
The State Bank of India, the countrys oldest Bank and a premier interms of balance sheet size, number of branches, market capitalizationand profits is today going through a momentous phase of Change andTransformation the two hundred year old Public sector behemoth istoday stirring out of its Public Sector legacy and moving with anagility to give the Private and Foreign Banks a run for their money.
The bank is entering into many new businesses with strategic tie ups Pension Funds, General Insurance, Custodial Services, Private Equity,Mobile Banking, Point of Sale Merchant Acquisition, AdvisoryServices, structured products etc each one of these initiatives havinga huge potential for growth.
The Bank is forging ahead with cutting edge technology andinnovative new banking models, to expand its Rural Banking base,looking at the vast untapped potential in the hinterland and proposesto cover 100,000 villages in the next two years.
It is also focusing at the top end of the market, on whole sale bankingcapabilities to provide Indias growing mid / large Corporate with acomplete array of products and services. It is consolidating its globaltreasury operations and entering into structured products andderivative instruments. Today, the Bank is the largest provider ofinfrastructure debt and the largest arranger of external commercialborrowings in the country. It is the only Indian bank to feature in the
Fortune 500 list.
The Bank is changing outdated front and back end processes tomodern customer friendly processes to help improve the totalcustomer experience. With about 8500 of its own 10000 branches andanother 5100 branches of its Associate Banks already networked,today it offers the largest banking network to the Indian customer.The Bank is also in the process of providing complete paymentsolution to its clientele with its over 8500 ATMs, and other electronic
channels such as Internet banking, debit cards, mobile banking, etc.
-
7/30/2019 archi finl (2)
12/54
With four national level Apex Training Colleges and 54 learningCentres spread all over the country the Bank is continuously engagedin skill enhancement of its employees. Some of the training
programmes are attended by bankers from banks in other countries.
The bank is also looking at opportunities to grow in size in India aswell as Internationally. It presently has 82 foreign offices in 32countries across the globe. It has also 7 Subsidiaries in India SBICapital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBILife and SBI Cards - forming a formidable group in the IndianBanking scenario. It is in the process of raising capital for its growth
and also consolidating its various holdings.
Throughout all this change, the Bank is also attempting to change oldmindsets, attitudes and take all employees together on this excitingroad to Transformation. In a recently concluded mass internalcommunication programme termed Parivartan the Bank rolled outover 3300 two day workshops across the country and covered over130,000 employees in a period of 100 days using about 400 Trainers,to drive home the message of Change and inclusiveness. Theworkshops fired the imagination of the employees with some otherbanks in India as well as other Public Sector Organizations seeking toemulate the programme.
The CNN IBN, Network 18 recognized this momentoustransformation journey, the State Bank of India is undertaking, andhas awarded the prestigious Indian of the Year Business, to itsChairman, Mr. O. P. Bhatt in January 2008.
EVOLUTION OF SBI
The origin of the State Bank of India goes back to the first decade
-
7/30/2019 archi finl (2)
13/54
of the nineteenth century with the establishment of the Bank ofCalcutta in Calcutta on 2 June 1806. Three years later the bankreceived its charter and was re-designed as the Bank of Bengal (2
January 1809). A unique institution, it was the first joint-stock bankof British India sponsored by the Government of Bengal. The Bankof Bombay (15 April 1840) and the Bank of Madras (1 July 1843)followed the Bank of Bengal. These three banks remained at theapex of modern banking in India till their amalgamation as theImperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks cameinto existence either as a result of the compulsions of imperial
finance or by the felt needs of local European commerce and werenot imposed from outside in an arbitrary manner to moderniseIndia's economy. Their evolution was, however, shaped by ideasculled from similar developments in Europe and England, and wasinfluenced by changes occurring in the structure of both the localtrading environment and those in the relations of the Indianeconomy to the economy of Europe and the global economicframework.
Bank of Bengal H.O.
ESTABLISHMENT
The establishment of the Bank of Bengal marked the advent of
-
7/30/2019 archi finl (2)
14/54
limited liability, joint-stock banking in India. So was theassociated innovation in banking, viz. the decision to allow theBank of Bengal to issue notes, which would be accepted forpayment of public revenues within a restricted geographical
area. This right of note issue was very valuable not only for theBank of Bengal but also its two siblings, the Banks ofBombay and Madras. It meant an accretion to the
capital of the banks, a capital on whichthe proprietors did not have to pay any interest. The
concept of deposit banking was also an innovation because thepractice of accepting money for safekeeping (and in somecases, even investment on behalf of the clients) by the
indigenous bankers had not spread as a general habit in mostparts of India. But, for a long time, and especially upto thetime that the three presidency banks had a right of note issue,bank notes and government balances made up the bulk of theinvestible resources of the banks.
The three banks were governed by royal charters, whichwere revised from time to time. Each charter provided for ashare capital, four-fifth of which were privately subscribed and
the rest owned by the provincial government. The members ofthe board of directors, which managed the affairs of each bank,were mostly proprietary directors representing the largeEuropean managing agency houses in India. The rest weregovernment nominees, invariably
civilservants, one of whom was elected as the president of the board.
Group Photogaph of Central Board
(1921)
First Five Year Plan
-
7/30/2019 archi finl (2)
15/54
In 1951, when the First Five Year Plan was launched, the
development of rural India wasgiven the highest priority.
The commercial banks of the country including the
Imperial Bank of India had till then confined theiroperations to the urban sector and were not equipped
torespond to the emergent needs of economic regeneration
of the rural areas. In order,therefore, to serve the economy
in general and the rural sector in particular, the All
IndiaRural Credit Survey Committee recommended the
creation of a state-partnered and state-sponsored bank bytaking over the Imperial Bank of India, and integrating
with it, the former state-owned or state-associate banks. An
act was accordingly passed in Parliament in May1955 and
the State Bank of India was constituted on 1 July
1955. More than a quarter of theresources of the Indian
banking system thus passed under the direct control of the
State.Later, the State Bank of India (Subsidiary Banks) Act
was passed in 1959, enabling the StateBank of India to
take over eight former State-associated banks as itssubsidiaries (later named Associates).The State Bank of
India was thus born with a new sense of social purposeaided by the 480offices comprising branches, sub offices
and three Local Head Offices inherited from theImperial
Bank. The concept of banking as mere repositories of
the community's savings andlenders to creditworthy parties
was soon to give way to the concept of purposefulbankingsubserving the growing and diversified financial
needs of planned economic development.The State Bank of
India was destined to act as the pacesetter in this respect
and lead the
-
7/30/2019 archi finl (2)
16/54
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
-
7/30/2019 archi finl (2)
17/54
ABN AMRO Bank
American Express
Strength/ Opportunities:
The growth for SBI in the coming years is likely to be
fueled by the following factors: Continued effort to
increase low cost deposit would ensure improvement in
NIMs andhence earnings. Growing retail & SMEs thrust
would lead to higher business growth. Strong economic
growth would generate higher demand for funds pursuantto higher corporate demand for credit on accountof 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 growthprospects of thebank going forward. Stiff competition, especially in the
retail segment, could impact retail growth of SBI andhence
slowdown in earnings growth. Contribution of retail credit
to total bank credit stood at 26%. Significant thrust ongrowingretail book poses higher credit risk to the bank.
Delay in technology upgradation could result in loss of
market shares. Management indicated a likely pension
shortfall on account of AS-15 to be close toRs50bn. Slow
down in domestic economy would pose a concern over
credit off-take therebyimpacting earnings growth
DIFFERENT PRODUCTS OF SBI
DEPOSIT LOANS CARDS DIFFERENTCREDIT CARDS
Savings Home Consumer SBI
http://www.icicibank.com/pfsuser/icicibank/depositproducts/savingaccount/savingaccount.htmhttp://www.icicibank.com/Pfsuser/loans/homeloans/hlhomepage.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/savingaccount/savingaccount.htmhttp://www.icicibank.com/Pfsuser/loans/homeloans/hlhomepage.htm -
7/30/2019 archi finl (2)
18/54
Account Loans Cards International
cards
Life Plus
Senior
Citizens
Savings
Account
Loan
Against
Property
Credit Card SBI Gold
cards
Fixed
Deposits
Personal
Loans
Travel Card SBI Gold
Master cards
Security
Deposits
Car Loan Debit Cards Your City
Your Cards
Recurring
Deposits
Loans
againstSecurities
Commercial
Cards
Tax-SaverFixedDeposit
TwoWheeler
CorporateCards
PartnershipCards
Salary
Account
Pre-
approved
Loans
Prepaid Card
AdvantageWoman
SavingsAccount
RetailAsset
Purchase Card SBI EmployeeCards
Rural
Savings
Account
Farmer
Finance
Distribution
Cards
People's
Savings
Account
Business
Installment
Loans
Business Card SBI
Advantage
Cards
http://www.icicibank.com/pfsuser/icicibank/depositproducts/savingaccount/savingaccount.htmhttp://www.icicibank.com/Pfsuser/loans/homeloans/hlhomepage.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/seniorcitizen/seniorcitizen.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/seniorcitizen/seniorcitizen.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/seniorcitizen/seniorcitizen.htmhttp://www.icicibank.com/Pfsuser/loans/lap/laphomepage.htmhttp://www.icicibank.com/Pfsuser/loans/lap/laphomepage.htmhttp://www.icicibank.com/Pfsuser/loans/lap/laphomepage.htmhttp://www.icicibank.com/pfsuser/cards/creditcard/cc_home.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/fixeddeposits/fixeddeposits.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/fixeddeposits/fixeddeposits.htmhttp://www.icicibank.com/Pfsuser/loans/personalloans/plhomepage.htmhttp://www.icicibank.com/Pfsuser/loans/personalloans/plhomepage.htmhttp://www.icicibank.com/pfsuser/cards/travel_card/index.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/Security_deposits/Security_deposits.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/Security_deposits/Security_deposits.htmhttp://www.icicibank.com/Pfsuser/loans/carloans/alhomepage.htmhttp://www.icicibank.com/pfsuser/cards/debitcard/dbhome.htmhttp://www.icicibank.com/Pfsuser/loans/las/lashomepage.htmhttp://www.icicibank.com/Pfsuser/loans/las/lashomepage.htmhttp://www.icicibank.com/Pfsuser/loans/las/lashomepage.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/taxsaverfixdep/taxfixeddeposits.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/taxsaverfixdep/taxfixeddeposits.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/taxsaverfixdep/taxfixeddeposits.htmhttp://www.icicibank.com/Pfsuser/loans/twowheeler/twhomepage.htmhttp://www.icicibank.com/Pfsuser/loans/twowheeler/twhomepage.htmhttp://www.icicibank.com/pfsuser/cards/com_card/corporate_card1/co_card.htmhttp://www.icicibank.com/pfsuser/cards/com_card/corporate_card1/co_card.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/powerpay/powerpay.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/powerpay/powerpay.htmhttp://www.icicibank.com/Pfsuser/loans/preapprovedloans/preapploans.htmhttp://www.icicibank.com/Pfsuser/loans/preapprovedloans/preapploans.htmhttp://www.icicibank.com/Pfsuser/loans/preapprovedloans/preapploans.htmhttp://www.icicibank.com/Pfsuser/cards/prepaidcards/prepaid.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/woman_adv/main.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/woman_adv/main.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/woman_adv/main.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/woman_adv/main.htmhttp://www.icicibank.com/Pfsuser/loans/RetailAssetBrances.htmhttp://www.icicibank.com/Pfsuser/loans/RetailAssetBrances.htmhttp://www.icicibank.com/Pfsuser/cards/purchase_card/purchase_card.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/ruralsav/rural_fea.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/ruralsav/rural_fea.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/ruralsav/rural_fea.htmhttp://www.icicibank.com/Pfsuser/loans/FarmerFinance/ffhomepage.htmhttp://www.icicibank.com/Pfsuser/loans/FarmerFinance/ffhomepage.htmhttp://www.icicibank.com/Pfsuser/cards/Distribution_Cards/Distribution_Cards.htmhttp://www.icicibank.com/Pfsuser/cards/Distribution_Cards/Distribution_Cards.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/peoplesav/people_fea.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/peoplesav/people_fea.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/peoplesav/people_fea.htmhttp://www.icicibank.com/Pfsuser/cards/com_card/bus_card/bus_card.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/savingaccount/savingaccount.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/savingaccount/savingaccount.htmhttp://www.icicibank.com/Pfsuser/loans/homeloans/hlhomepage.htmhttp://www.icicibank.com/Pfsuser/loans/homeloans/hlhomepage.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/seniorcitizen/seniorcitizen.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/seniorcitizen/seniorcitizen.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/seniorcitizen/seniorcitizen.htmhttp://www.icicibank.com/Pfsuser/loans/lap/laphomepage.htmhttp://www.icicibank.com/Pfsuser/loans/lap/laphomepage.htmhttp://www.icicibank.com/Pfsuser/loans/lap/laphomepage.htmhttp://www.icicibank.com/pfsuser/cards/creditcard/cc_home.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/fixeddeposits/fixeddeposits.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/fixeddeposits/fixeddeposits.htmhttp://www.icicibank.com/Pfsuser/loans/personalloans/plhomepage.htmhttp://www.icicibank.com/Pfsuser/loans/personalloans/plhomepage.htmhttp://www.icicibank.com/pfsuser/cards/travel_card/index.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/Security_deposits/Security_deposits.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/Security_deposits/Security_deposits.htmhttp://www.icicibank.com/Pfsuser/loans/carloans/alhomepage.htmhttp://www.icicibank.com/pfsuser/cards/debitcard/dbhome.htmhttp://www.icicibank.com/Pfsuser/loans/las/lashomepage.htmhttp://www.icicibank.com/Pfsuser/loans/las/lashomepage.htmhttp://www.icicibank.com/Pfsuser/loans/las/lashomepage.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/taxsaverfixdep/taxfixeddeposits.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/taxsaverfixdep/taxfixeddeposits.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/taxsaverfixdep/taxfixeddeposits.htmhttp://www.icicibank.com/Pfsuser/loans/twowheeler/twhomepage.htmhttp://www.icicibank.com/Pfsuser/loans/twowheeler/twhomepage.htmhttp://www.icicibank.com/pfsuser/cards/com_card/corporate_card1/co_card.htmhttp://www.icicibank.com/pfsuser/cards/com_card/corporate_card1/co_card.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/powerpay/powerpay.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/powerpay/powerpay.htmhttp://www.icicibank.com/Pfsuser/loans/preapprovedloans/preapploans.htmhttp://www.icicibank.com/Pfsuser/loans/preapprovedloans/preapploans.htmhttp://www.icicibank.com/Pfsuser/loans/preapprovedloans/preapploans.htmhttp://www.icicibank.com/Pfsuser/cards/prepaidcards/prepaid.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/woman_adv/main.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/woman_adv/main.htmhttp://www.icicibank.com/pfsuser/icicibank/depositproducts/woman_adv/main.htmhttp://www.icicibank.com/Pfsuser/loans/RetailAssetBrances.htmhttp://www.icicibank.com/Pfsuser/loans/RetailAssetBrances.htmhttp://www.icicibank.com/Pfsuser/cards/purchase_card/purchase_card.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/ruralsav/rural_fea.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/ruralsav/rural_fea.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/ruralsav/rural_fea.htmhttp://www.icicibank.com/Pfsuser/loans/FarmerFinance/ffhomepage.htmhttp://www.icicibank.com/Pfsuser/loans/FarmerFinance/ffhomepage.htmhttp://www.icicibank.com/Pfsuser/cards/Distribution_Cards/Distribution_Cards.htmhttp://www.icicibank.com/Pfsuser/cards/Distribution_Cards/Distribution_Cards.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/peoplesav/people_fea.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/peoplesav/people_fea.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/peoplesav/people_fea.htmhttp://www.icicibank.com/Pfsuser/cards/com_card/bus_card/bus_card.htm -
7/30/2019 archi finl (2)
19/54
Freedom
Savings
Account
Flexi Cash Merchant
Services
AWARS AND RECOGNITIONS
http://www.icicibank.com/Pfsuser/icicibank/depositproducts/bank_atm/bank_atm.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/bank_atm/bank_atm.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/bank_atm/bank_atm.htmhttp://www.icicibank.com/Pfsuser/loans/flexicash/fchomepage.htmhttp://www.icicibank.com/pfsuser/cards/creditcard/merchant.htmhttp://www.icicibank.com/pfsuser/cards/creditcard/merchant.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/bank_atm/bank_atm.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/bank_atm/bank_atm.htmhttp://www.icicibank.com/Pfsuser/icicibank/depositproducts/bank_atm/bank_atm.htmhttp://www.icicibank.com/Pfsuser/loans/flexicash/fchomepage.htmhttp://www.icicibank.com/pfsuser/cards/creditcard/merchant.htmhttp://www.icicibank.com/pfsuser/cards/creditcard/merchant.htm -
7/30/2019 archi finl (2)
20/54
-
7/30/2019 archi finl (2)
21/54
3.10 INTRODUCTION TO SBI LOANS
Now a day not all the people have the capacity to fulfilltheir 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 orcustomers. In Bhubaneswar also there are so many banks
those provide loan to the people for different causes.
Types of Advance Product
Home Loan
Educational Loan
Car Loan
Personal Loan
Property Loan
Loan Against Shares\Debentures
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.
-
7/30/2019 archi finl (2)
22/54
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
-
7/30/2019 archi finl (2)
23/54
40 to 60 times of NMI, depending on repayment capacity
as % of NMI as under
Net Annual Income EMI/NMI Ratio
Upto Rs.2 lacs 40%
Above Rs.2 lac to Rs. 5 lacs 50%
Above Rs. 5 lacs 55%
To enhance loan eligibility you have option to add:
1. Income of your spouse/ your son/ daughter living with
you, provided they have a steady income and his/ her
salary account is maintained with SBI.
2. Expected rent accruals (less taxes, cess, etc.) if the
house/ flat being purchased is proposed to be rented out.
3. Depreciation, subject to some conditions.
4. Regular incomefrom all sourcesSBI CAR LOAN:
Purpose
You can take finance for:
A new car, jeep or Multi Utility Vehicles (MUVs)
-
7/30/2019 archi finl (2)
24/54
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 income could
-
7/30/2019 archi finl (2)
25/54
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-
-
7/30/2019 archi finl (2)
26/54
employed/businessmen duly accepted by the ITO
wherever applicable to be submitted.
8. Proof of official address for non-salaried individuals.If you are not an account holder with SBI you would also
need to furnish documents that establish your identity and
give proof of residence.
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).
-
7/30/2019 archi finl (2)
27/54
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
SL
.
No
PARAMETER
SCHEMEDETAILS
1 Applicable to All New Car Loans to Public
2 Scheme Period From July 1, 2009 to September 30, 2010
3 Interest Rate Period Term Loan Overdraft
First year 8% Fixed 8.5% fixed
For 2nd & 3rd
year10% fixed 10.5% fixed
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
-
7/30/2019 archi finl (2)
28/54
For
4th &
5th
year
3.75% above
Base
Rate i.e.11.25%
4.25% above
Base
Rate i.e.11.75%
For
6th &
7th
year
4.00% above
Base Rate
i.e.11.50%
4.50% above
Base Rate i.e.
12.00%
Base Rate 7.50 %
No other interest concession will be given
under
any tie-up arrangement or otherwise below
the
offer rate.
4 Reset Period Interest Rate will be reset on the anniversary
date of the loan to the applicable card rate
contracted as on the date of sanction under
the
respective new car loan schemes i.e.
Spreads
-
7/30/2019 archi finl (2)
29/54
above Base Rate as applicable on the date of
Sanction as per the agreement.
5 Processing fee 0.50% of loan amount
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.
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
-
7/30/2019 archi finl (2)
30/54
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 Rate of Interest
For loans upto Rs.4 lacs 3.75% above Base Rate,
currently 11.25% p.a.
Above Rs.4 lacs and upto
Rs.7.50 lacs
5.25% above Base Rate,
currently 12.75% p.a.
Above Rs.7.50 lacs 4.25% above Base Rate,
currently 11.75% p.a.
-
7/30/2019 archi finl (2)
31/54
(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)Processing Fees
No processing fee/ upfront charges
Deposit of Rs. 5000/- for education loan for studies
abroad which will be adjusted in the margin money
Repayment Tenure
Repayment will commence one year after completion of
course or 6 months after securing a job, whichever is
earlier.
Place of
Study
Loan
Amount
Repayment in
Period
Years
Studies in
India
Rs. 10.0 lacs 5-7
-
7/30/2019 archi finl (2)
32/54
Studies
Abroad
Rs. 20.0 lacs 5-7
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 No Security
cs to Rs. 7.50 lacs Collateral security in the form of
suitable third party
Guarantee. The bank may, at its
discretion, in
exceptional cases, weive third party
guarantee if
satisfied with the net-worth/means of
parent/s who
-
7/30/2019 archi finl (2)
33/54
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.
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:
o Studies in India: 5%
o
Studies Abroad: 15% SBI SARAL PERSONAL LOAN:
-
7/30/2019 archi finl (2)
34/54
Purpose
The loan will be granted for any legitimate purpose
whatsoever (e.g. expenses for domestic or foreigntravel, 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 withminimum 2 years standing.
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.
-
7/30/2019 archi finl (2)
35/54
MARKETING STRATEGY:-
It is a process that can allow an organization to concentrate its limited resources on the
greatest opportunities to increase sales and achieve a sustainable competitive advantage.
A marketing strategy should be cantered around the key concept that customer
satisfaction is the main goal.
Marketing strategy is a method of focusing an organization's energies and
resources on a course of action which can lead to increased sales and dominance of a
targeted market niche. A marketing strategy combines product development, promotion,
distribution, pricing, relationship management and other elements; identifies the firm's
marketing goals, and explains how they will be achieved, ideally within a stated
timeframe. Marketing strategy determines the choice of target market segments,
-
7/30/2019 archi finl (2)
36/54
positioning, marketing mix, and allocation of resources. It is most effective when it is an
integral component of overall firm strategy, defining how the organization will
successfully engage customers, prospects, and competitors in the market arena.
Corporate strategies, corporate missions, and corporate goals. As the customer
constitutes the source of a company's revenue, marketing strategy is closely linked with
sales. A key component of marketing strategy is often to keep marketing in line with a
company's overarching mission statement
TYPES OF STRATEGIES
Marketing strategies may differ depending on the unique situation of the individual
business. However there are a number of ways of categorizing some generic strategies. A
brief description of the most common categorizing schemes is presented below:
Strategies based on market dominance - In this scheme, firms are classified
based on their market share or dominance of an industry. Typically there are four
types of market dominance strategies:
Leader
Challenger
Follower
Niches
Porter generic strategies - strategy on the dimensions of strategic scope and
strategic strength. Strategic scope refers to the market penetration while strategic
strength refers to the firms sustainable competitive advantage. The generic
strategy framework (porter 1984) comprises two alternatives each with two
alternative scopes. These are Differentiation and low-cost leadership each with a
dimension of Focus-broad or narrow.
Product differentiation (broad)
Cost leadership (broad)
Market segmentation (narrow)
-
7/30/2019 archi finl (2)
37/54
Innovation strategies - This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is on
the cutting edge of technology and business innovation. There are three types:
Pioneers
Close followers
Late followers
Growth strategies - In this scheme we ask the question, How should the firm
grow?. There are a number of different ways of answering that question, but the
most common gives four answers:
Horizontal integration
Vertical integration
Diversification
Intensification
MARKETING MIX
Meaning and Definition
Marketing Mix means to collect and mix the resources of marketing in the manner that
objects of the enterprise may be achieved and maximum satisfaction may be provided to
the consumers. The term marketing mix is used to describe a combination of four
elements the product, price, physical distribution and promotion. These are popularly
-
7/30/2019 archi finl (2)
38/54
known as Four Ps. A brief description of the four elements of marketing mix (Four
Ps) is.
Product : The product itself is the first element. Products most satisfyconsumer needs. the management must, first decide the products to be
produced, by knowing the needs of the consumers.
Price : The second element to affect the volume of sales is the price. The
market or announced amount of money asked from a buyer is known as basic
value placed on a product.
Promotion : The product may be known to the consumers. Firms mustundertake promotion work-advertising, publicity, personal selling etc. which
are the major activities.
Place : Physical distribution is the delivery of products at the rights time and at the
right place. The distribution mix is the combination of decisions relating to
marketing channels, storage facility, inventory control, location transportation
warehousing etc
Marketing Mix
-
7/30/2019 archi finl (2)
39/54
MARKETING IN BANKING:-
Marketing approach in banking sector had taken significance after 1950 in western
countries and then after 1980 in Turkey. New banking perceptiveness oriented toward
market had influenced banks to create new market. Banks had started to perform
marketing and planning techniques in banking in order to be able to offer their new
services efficiently. Marketing scope in banking sector should be considered under the
service marketing framework. Performed marketing strategy is the case which is
determination of the place of financialinstitutions on customers mind. Bank marketing
does not only include service selling of the bank but also is the function which gets
personality and image for bank on its customers mind. On the other hand, financial
marketing is the function which relates uncongenitalies, differences and non similar
applications between financial institutions and judgement standards of their customers.
The reasons for marketing scope to have importance in banking and for banks to interest
in marketing subject can be arranged as:
Change in demographic structure: Differentiation of population in the number and
composition affect quality and attribute of customer whom benefits from banking
services. Intense competition in financial service sector: The competition became intense
due to the growing international banking perceptiveness and recently being non limitingfor newenterprises in the sector. Increase in liberalization of interest rates has intensified
the competition. Banks wish for increasing profit: Banks have to increase their profits to
create new markets, to protect and develop their market shares and to survive on the
basis of intense competition and demographic chance levels. The marketing
Product
Product
variety
Quality
Design
Features
Brand Name
Packaging
Promotion
Sales
promotion
Advertising
Sales force
Public
relations
Directmarketing
Price
List price
Discounts
Allowances
Payment
period
Credit cards
Place
Channels
Coverage
Assortments
Locations
Inventory
Transport
-
7/30/2019 archi finl (2)
40/54
comprehension that is performed by banks since 1950 can be shown as in following five
stages:
1. Promotion oriented marketing comprehension
2. Marketing comprehension based on having close relations for customers
3. Reformist marketing comprehension
4. Marketing comprehension that focused on specializing in certain areas
5. Research, planning and control oriented marketing comprehension
THE MARKETING MIX IN BANKING SECTOR
SERVICE
Recently, banks are in a period that they earn money in servicing beyond selling money.
The prestige is get as they offer their services to the masses. Like other services, banking
servicesare also intangible. Banking services are about the money in different types and
attributes like lending, depositing and transferring procedures. These intangible services
are shaped in contracts. The structure of banking services affects the success of
institution in long term. Besides the basic attributes like speed, security and ease in
banking services, the rights like consultancy for services to be compounded are alsopreferred.
PRICE
The price which is an important component of marketing mix is named differently in the
base of transaction exchange that it takes place. Banks have to estimate the prices of their
services offered. By performing this, they keep their relations with extant customers and
take new ones. The prices in banking have names like interest, commission and
expenses. Price is the sole element of marketing variables that create earnings, while
others cause expenditure. While marketing mix elements other than price affect sales
volume, price affect both profit and sales volume directly. Banks should be very careful
in determining their prices and price policies. Because mistakes in pricing cause
customers shift toward the rivals offering likewise services.DISTRIBUTION
The complexities of banking services are resulted from different kinds of them. The most
important feature of banking is the persuasion of customers benefiting from services.
Most banks services are complex in attribute and when this feature joins the
intangibility characteristics, offerings take also mental intangibility in addition to
physical intangibility. On the other hand, value of service and benefits taken from it
mostly depend on knowledge, capability and participation of customers besides featuresof offerings. This is resulted from the fact that production and consumption have non
separable characteristics in those services. Most authors argue that those features of
banking services makes personal interaction between customer and bank obligatory and
-
7/30/2019 archi finl (2)
41/54
the direct distribution is the sole alternative. Due to this reason, like preceding
applications in recent years, branch offices use traditional method in distribution of
banking services.
PROMOTION
One of the most important element of marketing mix of services is promotion which is
consist of personal selling, advertising, public relations, and selling promotional tools.
PERSONAL SELLING
Due to the characteristics of banking services, personal selling is the way that most
banks prefer in expanding selling and use of them. Personal selling occurs in two ways.
First occurs in a way that customer and banker perform interaction face to face at branchoffice. In this case, whole personnel, bank employees, chief and office manager, takes
part in selling. Second occurs in a way that customer representatives go to customers
place. Customer representatives are specialist in banks services to be offered and they
shape the relationship between bank and customer.
ADVERTISING
Banks have too many goals which they want to achieve. Those goals are for
accomplishing the objectives as follows in a way that banks develop advertising
campaigns and use media.
1. Conceive customers to examine all kinds of services that banks offer
2. Increase use of services
3. Create well fit image about banks and services
4. Change customers attitudes
5. Introduce services of banks
6. Support personal selling
7. Emphasize well service
Advertising media and channels that banks prefer are newspaper, magazine, radio, direct
posting and outdoor ads and TV commercials. In the selection of media, target market
should be determined and the media that reach this target easily and cheaply must be
preferred.
Banks should care about following criteria for selection of media.:
-
7/30/2019 archi finl (2)
42/54
1. Which media the target market prefer
2. Characteristics of service
3. Content of message
4. Cost
5. Situation of rivals
PUBLIC RELATIONS
Public relations in banking should provide;
1. Establishing most effective communication system
2. Creating sympathy about relationship between bank and customer
3. Giving broadest information about activities of bank.
It is observed that the banks in Turkey perform their own publications, magazine and
sponsoring activities.
SELLING PROMOTIONAL TOOLS
Another element of the promotion mixes of banks is improvement of selling. Mostly
used selling improvement tools are layout at selling point, rewarding personnel,
seminaries, special gifts, premiums, contests.
DEVELOPMENT IN MARKETING SCOPE AT THE ASPECT OF SERVICE
MARKETING
Marketing scope develops day to day. These developments carry special significance for
service sector in which customer and service producer interact closely.
INTERNAL MARKETING
Especially in service sector like external relations, internal relations also have
significance. It requires finding and keeping successful personnel. For personnel of the
organization to be considered their own goals and service situation, values of the
organization are sold to them. The communication techniques carried out for customers
are also performed for the personnel in internal marketing and this two techniques go
-
7/30/2019 archi finl (2)
43/54
together. For example, the ads that aim creating firms image should be prepared with
regarding to audience which is composed of firms personnel.
NETWORK MARKETING
This approach takes the organization as a sequence which involves producer and
customer that market services to each other in the organization. In this structure, the
activities of departments that compose organization would be more focused on market.
This will also affect the structure of organization.
RELATIONSHIP MARKETING
It was mentioned that close relationship was established between producer and customer
in service sector. In addition to this, life cycle of a customer relationship was also
mentioned under the product outline. According to the researchers, maintaining the
relationship for extant customer increases the profit of firms. It should be emphasized
that this fact has an importance for service sector.
MARKETING STRATEGIES OF SBI
SBI took several initiatives to capture the market pie in 2008. SBI has adopted various
marketing strategies for educating customers about its products and services, particularly
the asset products. The various marketing strategies of SBI are discussed below:
Participation in various consumer exhibition and meetings
SBI multiproduct sales team regularly participates in the exhibitions / melas organized
by various sponsors (e.g., SSISmall Scale Industries). SBI finances loans to the
entrepreneurs through this channel. SBI also sets us booking counters are various tradefairs and industrial fairs where it offers loans at concessional rates to
borrowers for booking at those counters. Apart from financing loans to the borrowers,
SBI uses these meets as an opportunity to educate people about its various personal
segment (psegment) products and services.
Tieups with builders / car and other vehicle dealer
SBI has entered into financing agreement with various builders, cars and other vehicle
dealers to finance the customers at the existing market rates. Usually, we find dealer
advertising purchase of their vehicles at cheap rates. This is possible through a loan
agreement with the banks.
Festive loan products
SBI takes advantage of festive seasons, such as Holi, Diwali, Christmas, New Year for
propagating their loan products. During these periods it ties up with various dealers to
organize finance for customers who wish to purchase cars or other vehicles during the
-
7/30/2019 archi finl (2)
44/54
festive period. During festive periods it offers XPress credit and festival loan also to the
customers.
Advertising in TV and Newspapers
The advertising strategy is centralized at Mumbai office for advertisements in TV andEconomic Times / The Times of India. The famous Chiman Lal Charlie Ad placed in TV
has also won awards. SBI campaigns also attempts to explain why it is better than other
banks (See Figure 9). For advertisement into other National dailies and local dailies their
advertisement strategy is decentralized at the local headoffice level. SBI has launched
an education initiative to educate its customers about ATMs, its account opening
services, its wide network, home loan and various other loan products and so on. The
advertisements are regularly published
in local and national dailies.
The bank has taken the positioning of Pure Banking emphasizing that SBI does what itdoes best: Pure banking. The bank has now taken the tagline" Pure Banking , Nothing
else", which takes a dig at new generation banks which spend lot of time doing non
banking financial services. A new TV commercial is also running showing a young guy
getting impressed by the services offered by SBI, which is his parents bank. The recent
print and TV commercial are aimed at shedding the "old public sector bank" image of
SBI and make it more relevant and attractive to the young customers. The bank is now
running a mix of rational, humorous and emotional advertisement to promote the bank.
Oral Marketing
SBI has appointed various customer relationship officers and assistants at the 10branches of SBI, Bilaspur. These officers take care to provide the relevant information to
the customers who visit their offices. They help the customers with various products
and services of SBI.
Professional Offerings
SBI has also several offerings directed towards professionals who wish to set up their
own businesses. For example, Doctor Plus/ Dental Doctor Plus is a finance scheme
directed towards the Doctors/ Dentists who wish to set up their own clinics/
dispensaries and for purchasing medical equipments. Similarly, they have SBI Shoppe
scheme which is directed towards other professionals like beauticians and other service
oriented people encouraging them to set up their own establishments for rendering
services. SBI has a welltrained multiproduct sales team (MPST) which educates its
customers about these products and services.
Ads at various display boards
SBI also advertises at various billboards about its products and services
TARGETTING RURAL MARKET
In 2008 SBI planned to capture the rural market of India. Establishing a bank in a rural
area is a costly affair. However, the technological advancements made the possibility of
banking over mobile from anywhere in India. SBI launched mobile banking in March
2009 with a vision to capture rural market without needing to establish any physical
premises there. Along with SBI, ICICI and few other banks also launched Mobile
-
7/30/2019 archi finl (2)
45/54
banking. Mobile banking refers to conducting banking activities using a mobile device,
whereby customers can access their accounts to check account balances, transfer funds,
pay bills, and perform various other transactions. Mobile banking reduces delays in
banking transactions and affords time to employees for other banking services.
The introduction of mobile banking follows the relatively successful introduction of
Internet banking in India, whereby customers can access their bank accounts, through the
banks web site. Since, the number of Internet users is small in comparison to mobile
phone users in India, the mobile phone network is the most likely platform for value
added services such as online banking and mobile commerce (Manson, 2002).
Several issues, both technological and cultural mar the adoption of mobile banking. Vital
Analytics (2009) reveals fast growth of Mobile Banking in Urban India. Around 40
million users in India are using mobile banking in Urban India. The most widely used
services in mobile banking are checking account balance (91%), Viewing last three
transactions (65%), Cheque status (48%), payment reminders (48%) and requesting a
cheque book (44%).
However, although promising, the adoption of Mobile Banking has so far been dismal.
Security concern is the biggest barrier to adoption of mobile banking. SBI undertook
several security measures to allay users security concerns. Indian Government has also
passed legislation covering mobile banking practices in India. Still the adoption of
mobile banking is far from expected. Particularly in the target market (rural areas), there
is hardly any adoption. Lack of awareness of these security enhancing approaches could
be one of the other major reasons for poor adoption. The tradition and culture of India
plays a vital role in how Indian users view and adopt mobile banking for their
transactions. It would be interesting to know if there are factors that mar adoption
beyond the lack of awareness or faith in security practices of Indian banks.
Generic strategies adopted by State Bank of India:
Institution for advanced learning: to provide state of the art training in
financial products to middle level and senior level executives.
Internal consultant/change agent: to act as a catalyst for change in attitudes and
orientation of banking staff and to provide expertise and consultative support
Feedback supplier: to capture and structure feedback from trainees and from the
market
Think tank: to provide expert and inform suggestions, model business strategies,
analysis of market developments from a banker perspective.
Research and development role: to carry out research on contemporary subjects
that are relevant to the banks short term and medium term and operational needs
and policy formulation
-
7/30/2019 archi finl (2)
46/54
Overlapping staff training canters: to validate and closely monitor the staff
training canters in seven circles attached to the academy.
The Restructuring
To overcome the intense competition from private and foreign banks, SBI planned a major
organizational restructuring exercise.
The key aspects involved
redesigning of branches,
providing alternate channels;
focus on a lean structure and
Technological up gradation.
A business process reengineering (BPR) team was constituted in June 2003 with
McKinsey & Company as consultants. The BPR's basic goal was to create an
operating architecture that would facilitate service delivery of international
standards.
New Products and Service
Apart from restructuring, SBI launched several innovative, value-added products and
services to project a customer friendly image. It launched a special service for corporate
customers called 'telebanking and remote login' to support transactional requests.
This facility would be available at 593 branches, and remote login at 269 branches. Thebanks trade finance solutions, called EXIMBILLS, were intended to handle trade finance
transactions efficiently and enhance the range of services provided to corporate and
network branches.
In March 2004, SBI announced that it would introduce anywhere banking facility for
its customers over 9000 branches across India in the next two years. All the branches in
Mumbai would provide this facility by December 2004. SBI also launched different
customized loan programs to cater to various sections of society depending on income
levels and repayment capabilities. Interest rates and repayment periods were tailor-made
to suit the customer groups.
-
7/30/2019 archi finl (2)
47/54
Alliances and Tie-Ups
To boost its business, SBI entered into several alliances and tie-ups with automobile,
insurance, mutual fund, project finance and medical equipment companies.
Auto.Finance
Unlike other competitors that relied on reduced interest rates to get business, SBI
extended the tenure of car loans from five to seven years, thereby lowering the monthly
debt repayment burden of the loan seeker. SBI entered into a tie-up with Maruti, the
largest automobile manufacturer in India, to provide loans for purchase of Maruti cars
at the rate of 10.05 per cent and 11.25 per cent for three years and above three years
respectively. After the scheme was introduced, SBI emerged as the largest financier for
Maruti cars in India and the number of Maruti vehicles financed grew by 17 per cent in
the fiscal 2003-04 over fiscal 2002-03
The Marketing Initiatives
SBI carried out various marketing initiatives to enhance its reach. They included
Segregating and targeting existing high value customers,
Cross sales of other products,
Setting up call centres and outbound sales force to secure new customers.
Plans were also made to utilize database marketing to pursue large and medium
sized corporate, government and trade finance customers.
Database marketing was expected to draw increased revenue from cross selling,lower costs and increased customer loyalty.
SBI also introduced various other ways of reaching out to customers like
extension of hours of work(SBI increased daily working hours by two hours
and Sunday banking was introduced) and
Aggressive marketing through print and television media.
Looking Ahead-Result:
Among the factors that will help in realizing this full potential were access to
institutional credit to more farmers and appropriate quantity and quality of agriculture
-
7/30/2019 archi finl (2)
48/54
credit. Since the Seventies, the decadal average growth rate of the volume of short-term
institutional credit to agriculture has stagnated at around 15 per cent, while the growth
rate of the volume of long-term credit has in fact declined from 20.2 per cent in the
1970s to11.9 per cent in 1990s.
The government has anxiously examined the question of agriculture credit and related
issues in consultation with the Reserve Bank of India (RBI), National Bank for
Agriculture and Rural Development (Nabard) and commercial banks.
Among commercial banks, SBI with its vast network is well placed to fulfill the large
commitments of the new government to the farm sector. In the current financial year the
government targeted for a 30 per cent increase in the aggregate agricultural credit over
the previous year.
On interest rate, the rates would remain stable in the short-term. There could be a
revision in interest rates in the medium to long-term period. Further, any likely revision
would depend on external factors than domestic factors.
Elaborating on the importance of the right tie-ups and partnerships for the bank, there
are a few non-core business areas where SBI is and wherever we have partners, the
global majors are our partners. For instance, in insurance, Cardiff, and for cards, GE is
our partners. We are becoming a very major player in the Indian economy. For example
SBI Cards we are the third largest card company and second fastest growing card
company after ICICI. This is the most profitable card company in the country and SBI is
doing very well.
On technological up gradation, all the 13,650 branches of the bank were fully
computerized, also they increased fully integrated ATM network from 4,000 to 6000
today across the country. SBI in its own quiet manner is trying to provide world-class
services.
SBI`s Strategies in the current scenario
SBI have set up capacity in places where they are not very strong. Its time for
them to follow overall SBI philosophy of planning new branches, given the huge
untapped potential. Besides, this is also the best time to benefit from their past
expansion, since there is a lot of trust in SBI.
-
7/30/2019 archi finl (2)
49/54
Brand SBI is very strong, while people may be generally cautious about some other
brands. They can not only tap the potential better but can also provide a safe and
transparent insurance alternative to the public.
The bank is entering into many new businesses with strategic tie ups Pension Funds,General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale
Merchant Acquisition, Advisory Services, structured products etc each one of these
initiatives having a huge potential for growth.
SOME OF THE STRATEGIES TO COPE WITH THE CURRENT SCENARIO
ARE LISTED BELOW:
It is the part of SBI`s philosophy to open new branches .The Bank is forging
ahead with cutting edge technology and innovative new banking models, to
expand its Rural Banking base, looking at the vast untapped potential in the
hinterland and proposes to cover 100,000 villages in the next two years. SBI is
planning to hire 11,000 employees in the current fiscal.
The Bank is also in the process of providing complete payment solution
to its clientele with its over 8500 ATMs, and other electronic channels such as
Internet banking, debit cards, mobile banking, etc.
Countrys largest lender, State Bank of India (SBI) has prepared a blueprint to
go retail in its international operations. Such strategy would help the bank to
promote its lead in syndication of loans in the overseas market, at a cheaper cost.
The banks overseas operations have been instructed to thrust more on
promoting retail banking locally, SBI is assessing that by opening more branches
across foreign locations and promoting retail services by mobilising deposits at
interest rates as low as 3-3.5%, the bank will be able to increase its operating
margins by 250-300 basis points in overseas markets where syndicationopportunities arise often.SBI is expected to open \seven new branches over next
eight months in the United Kingdom where it operates six branches currently.
In response to signals from the central bank, SBI have progressively reduced
their PLR from 13.75% to 12.25% during the past few months in stages, and
further softening in interest rates cannot be ruled out.
SBI is introducing loan products at sub-PLR rates - in home loans at 8%, auto
loans at 10%, special products for SMEs and... agriculture sector at 8%, but it
may not be possible for them to reduce the interest rate beyond a certain point.
-
7/30/2019 archi finl (2)
50/54
SBI is working on infrastructure sector projects, which has seen a growth of 26%
in the current year. For the year 2008 the Rs 10,000 crores was sanctioned for the
infrastructure projects while in the current year from April 08 to February 09 the
amount sanctioned for the infrastructure project is Rs 13,000 crores,out of which
project worth Rs 8000 crore is in pipeline. Despite of various viability issues the
growth in this sector for SBI is been intact.
With market-linked products finding fewer takers, insurance
companies are launching more guaranteed products to lure
investors. The latest to join the bandwagon is SBI Life insurance
with SBI Smart ULIP, a product that guarantees returns based on
the highest NAV recorded by the fund in the first seven years .
-
7/30/2019 archi finl (2)
51/54
-
7/30/2019 archi finl (2)
52/54
-
7/30/2019 archi finl (2)
53/54
-
7/30/2019 archi finl (2)
54/54
