PROJECT REPORT

ON

“Study Of Different Loans provided By SBI Bank”

IN PARTIAL FULLFILLMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

(BATCH 2013–15)

Submitted to: Submitted by:Dr. Poonamjot Kaur Nanak Singh

MBAIV E540

PUNJABI UNIVERSITY, PATIALA

1

CERTIFICATE

This is to certify that the internship dissertation MBA, titled (study of different loans

provided by sbi bank) submitted by Mr. Nanak Singh Student of MBA 4THsemester bearing

university ROLL NO 540 is a bonafied work carried out by him under my guidance. The

matter embodied in this dissertation has not been submitted earlier for award of many of

degree and diploma to the best of my knowledge and brief.

Signature of the Guide

Dr. Poonamjot Kaur

2

DECLARATION

I Nanak Singh, hereby declare that the work presented herein is genuine work done

originally by me and has not been published or submitted elsewhere for the requirement of a

degree programme. Any literature, data or works done by others and cited within this

dissertation has been given due acknowledgement and listed in the reference section.

Signature

Nanak Singh

3

PREFACE

Education becomes more meaningful when its theoretical aspects are combind with practical

experience.This provides an opportunity to the students to improve their understanding of the

study.

M.B.A. is a course which combines both its theoretical and practical aspects in the field of

management.The purpose of this research methodology report is to expose the students of

management sciences to real business situation.

As complementary to my Project report I prepared and submitted a project report on “ Study

Of different loans provided by SBI bank” .It was an attempt to present on account of

practical knowledge and observations gathered during the research period.

4

ACKNOWLEDGEMENT

First of all my sincere gratitude goes to my project guide Mrs. Poonamjot Kaur, who helped

and guided me for this work. His conversation and encouragement will always be remembered.

In many stages of project, her prideful expertise and professional knowledge provided crucial

and key injection to the technical solution. I also would like to thanks all the staff members of

the SBI BANK, for their cooperation and support during this work. Finally, I wish to thank my

family and friends for their encouragement and support that accomplishment me throughout

the research work. Lastly we would like to thanks our respondents for extending their co-

operation in valuable inputs.

5

INDEXCHAPTERS NO. CHAPTERS NAME PAGE NO.

1. INTRODUCTION OF ORGANISATION

AND TOPIC

6-21

1.1-INTRODUCTION OF TOPIC

1.2-INDIAN BANKING SYSTEM

1.3-CLASSIFICATION OF BANKS

1.4-INTRODUCTION OF ORGANISATION

SBI BANK

2. REVIEW  OF LITERATURE 22-23

3. NEED AND OBJECTIVES OF THE STUDY 24-25

4. RESEARCH METHODOLOGY 26-29

5. DATA ANALSIS AND INTERPRETATION 30-43

6. FINDING AND &RECOMMENDATIONS

44-46

7. LIMITATIONS OF STUDY 47-48

8. CONCLUSION 49-50

BIBLIOGRAPHY / REFERENCES 51-52

9. ANNEXURE 53-55

6

CHAPTER-I

INTRODUCTION OF ORGANISATION AND

TOPIC

7

1.1 INTRODUCTION OF TOPIC

A bank is a financial institution licensed by a government. Its primary activities include

borrowing and lending money. Many other financial activities were allowed over time. For

example banks are important players in financial markets and offer financial services such as

investment funds. In some countries such as Germany, banks have historically owned major

stakes in industrial corporations while in other countries such as the United States banks are

prohibited from owning non-financial companies. In Japan, banks are usually the nexus of a

cross-shareholding entity known as the zaibatsu. In France, banc assurance is prevalent, as

most banks offer insurance services (and now real estate services) to their clients.

History of banking

The History of Banking begins with the first prototype banks of merchants of the ancient

world, which made grain loans to farmers and traders who carried goods between cities. This

began around 2000 BC in Assyria and Babylonia. Later, in ancient Greece and during the

Roman Empire, lenders based in temples made loans and added two important innovations:

they accepted deposits and changed money. Archaeology from this period in ancient China

and India, also shows evidence of money lending activity.

Banking, in the modern sense of the word, can be traced to medieval and early Renaissance

Italy, to the rich cities in the north such as Florence, Venice and Genoa. The Bardi and

Peruzzi families dominated banking in 14th century Florence, establishing branches in many

other parts of Europe. Perhaps the most famous Italian bank was the Medici bank, established

by Giovanni Medici in 1397.

The development of banking spread from northern Italy through Europe and a number of

important innovations took place in Amsterdam during the Dutch Republic in the 16th

century, and in London in the 17th century. During the 20th century, developments in

Telecommunications and computing caused major changes to banks operations and let banks

dramatically increase in size and geographic spread. The Late-2000s financial crisis caused

many bank failures, including of some of the world's largest banks, and much debate about

bank regulation.

8

The world of banking has assumed a new dimension at dawn of the 21st century with the

advent of tech banking, thereby lending the industry a stamp of universality. In general,

banking may be classified as retail and corporate banking. Retail banking, which is designed

to meet the requirement of individual customers and encourage their savings, includes

payment of utility bills, consumer loans, credit cards, checking account and the like.

Corporate banking, on the other hand, caters to the need of corporate customers like bills

discounting, opening letters of credit, managing cash, etc.

Metamorphic changes took place in the Indian financial system during the eighties and

nineties consequent upon deregulation and liberalization of economic policies of the

government. India began shaping up its economy and earmarked ambitious plan for economic

growth. Consequently, a sea change in money and capital markets took place. Application of

marketing concept in the banking sector was introduced to enhance the customer satisfaction

the policy of privatization of banking services aims at encouraging the competition in

banking sector and introduction of financial services. Consequently, services such as Demat,

Internet banking, Portfolio Management, Venture capital, etc, came into existence to cater to

the needs of public. An important agenda for every banker today is greater operational

efficiency and customer satisfaction. The mew watchword for the bank is pretty ambitious:

customer delight.

The introduction to the marketing concept to banking sectors can be traced back to American

Banking Association Conference of 1958. Banks marketing can be defined as the part of

management activity, which seems to direct the flow of banking services profitability to the

customers. The marketing concept basically requires that there should be thorough

understanding of customer need and to learn about market it operates in. Further the market is

segmented so as to understand the requirement of the customer at a profit to the banks.

9

DEFINITION OF BANK

The Oxford dictionary defines the Bank as

“An establishment for the custody of money, which it pays out, on a customer’s order.”

According to Whitehead

“A Bank is defined as an institution which collects surplus funds from the public,

safeguards them, and makes them available to the true owner when required and also lends

sums be their true owners to those who are in need of funds and can provide security.”

Banking Company in India has been defined in the Banking Companies act 1949,

“One which transacts the business of banking which means the accepting, for the

purpose of lending or investment of the deposits of money from the public, repayable on

demand, or otherwise and withdraw able be cheque, draft, order or otherwise.”

The banking system is an integral subsystem of the financial system. It represents an

important channel of collecting small savings form the households and lending it to the

corporate sector. The Indian banking system has Reserve Bank of India (RBI) as the apex

body for all matters relating to the banking system. It is the central Bank of India. It is also

known as the Banker To All Other Banks.

EVOLUTION OF INDIAN BANKING

Ancient banking system of India constituted of indigenous bankers. They have been carrying

on their age-old banking operations in different parts of the country under different names.

The modern age of banking constitutes the fundamental basis of economic growth. The term

Bank is being used since long time but there is no clear conception regarding its beginning.

According to the viewpoint, in good old days. Italian money leaders were known as“Banchi”

because they kept a special type of table to transact their business.

10

1.2 INDIAN BANKING SYSTEM

"The success of the economic reforms is therefore all to see and the driving force of these

reforms is the banking sector".

                                                                                                         P. ChidamBaram

Banking system occupies an important place a nation's economy. A banking

institution is indispensable in a modern society. In plays a pivotal role in the

economic development of a country.

Thus, economic development of a country depends upon success of banking

industry and success of banking Industry is determined to a large extent by now well

then needs of its customers have been understood and satisfied.

Reserve Bank of India

The Banking system is an integral sub-system of the financial system. It represents an

important channel of collecting small savings from the households and lending it to the

corporate sector.

The Indian banking system has The Reserve Bank of India (RBI) as the apex body from all

matters relating to the banking system. It is the “Central Bank” of India and act as the banker

to all other banks.

Functions of RBI: • Currency issuing authority

• Banker to the government.

• Banker to other Bank.

• Framing of monetary policy.

• Exchange control.

• Custodian to foreign exchange and gold reserves.

• Development activities.

• Research and development in the banking sector.

11

Reserve Bank of India

Commercial Banks Co-operative Banks Development Banks

Nationalized Private Short-term credit

Long-term credit

Agricultural Credit

Urban Credit

EXIM Industrial Agricultural

Organizational Structure of Banks in India:

In India banks are classified in various categories according to differ rent

criteria. The following charts indicate the banking structure:

1.3 CLASSIFICATION OF BANKS

1.On the basis of Ownership

2. According to Function

1.On the basis of Ownership

PUBLIC SECTOR BANKS

Nationalized banks or public banks dominate banking System in India. The nationalization of

Banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major

objective behind nationalization was to spread banking infrastructure in rural areas and make

available cheap finance to Indian farmers. Before 1969, State Bank of India (SBI) was the

12

only public sector bank in India. Despite the entry of many new domestic and foreign private

banks since liberalization, public sector banks continue to dominate the commercial banking

industry.

PRIVATE SECTOR BANKS

Private sector banking in India received a flip in1994 when Reserve Bank of India

encouraged setting up of private banks as part of its policy of liberalization of the Indian

Banking Industry. Housing Development Finance Corporation Limited(HDFC) was amongst

the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a

bank in the private sector. Private Banks have played a major role in the development of

Indian banking industry. They have made banking more efficient and customer friendly. In

the process they have jolted public sector banks out of complacency and forced them to

become more competitive. India has a better banking system in place of other developing

countries.

CO-OPERATIVE BANKS

These are those banks that are jointly run by a group of individuals. Each individual has an

equal share in these banks. Its shareholders manage the affairs of the bank.

2.According to Function

COMMERCIAL BANKS These are the banks that do banking business to earn profit. These banks make loans for short

to business and in the process create money. Credit creation is the main function of these

banks.

13

FOREIGN BANKS These are those banks that are incorporated by foreign company. They have set up their

branches in India. These banks have their head offices in foreign countries. Their principle

function is to make credit arrangement or the export and the import of the country and these

banks deals in foreign exchange.

INDUSTRIAL BANKS Industrial banks are those banks that offer long term and medium term loan to the industries

and also work for their development. These banks help industries in sale of their shares,

debentures and bonds. They give loan to the industries for the purchase of land and

machinery.

AGRICULTURAL BANKS

Agricultural banks are those banks that give credit to agricultural sector of the economy.

SAVING BANKS

The principle function of these banks is to collect small savings across the country and put

them to the productive use. In India department of post office functions a savings banks.

CENTRAL BANK Central Bank is the apex bank of the banking system of the country. It issues currency notes

and acts a banker's bank. Economic stability is the principle function of this bank. In short, it

regulates and controls the banking system of the country. RBI is the Central Bank of India.

1.4INTRODUCTION OF ORGANISATION

HISTORY OF STATE BANK OF INDIA

The roots of the State Bank of India lie in the first decade of 19th century, when the Bank of

Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of

Bengal was one of three Presidency banks, the other two being the Bank of Bombay

(incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All

three Presidency banks were incorporated as joint stock companies and were the result of the

royal charters. These three banks received the exclusive right to issue paper currency in 1861

14

with the Paper Currency Act, a right they retained until the formation of the Reserve Bank of

India. The Presidency banks amalgamated on 27 January 1921, and the re-organized banking

entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint

stock company.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,

which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On

30 April 1955, the Imperial Bank of India became the State Bank of India. The government

of India recently acquired the Reserve Bank of India's stake in SBI so as to remove any

conflict of interest because the RBI is the country's banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which made

eight state banks associates of SBI. A process of consolidation began on 13 September 2008,

when the State Bank of Saurashtra merged with SBI.

acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its

affiliate, the State Bank of Travancore, already had an extensive network in Kerala.

Branches of SBI

State Bank of India has 173 foreign offices in 37 countries across the globe.

SBI has about 27,000+ ATMs (25,000th ATM was inaugurated by the then Chairman

of State Bank Shri O.P. Bhatt on 31 March 2011, the day of his retirement); and SBI

group(including associate banks) has about 45,000 ATMs.

SBI has 21,500 branches, including branches that belong to its associate banks.

SBI includes 99345 offices in India.

India's number one ADB is in Bellary i e State bank of India Bellary ADB

15

State Bank of India has become the first bank to install an ATM a Drass in Jammu &

Kashmir’s Cargill region. This is the banks 27,032nd ATM on 27 july 2012(k.k)

SBI Bank Loan Schemes

Loan against Shares & Debentures

This type of loan scheme can be availed against the shares, bonds, debenture or any other

government security policies you are currently holding. A maximum loan of 20, 00,000/- INR

can be availed from the SBI branches. The EMI is for a period of thirty months.

However, only fifty selected city branches have this facility to avail. The cities where this

facility can be availed are Ahmedabad, Baroda, Surat, Gandhinagar, Rajkot, Bangalore,

Mysore, Bhopal, Indore, Jabalpur, Raipur, Gwalior, Bhubaneswar, Cuttack, Sambalpur,

Chandigarh, Jalandhar, Ludhiana, Amritsar, Chennai, Coimbatore, Tirupur, Guwahati,

Shillong, Hyderabad, Visakhapatnam, Karimnagar, Tirupati, Kolkata, Siliguri, Asansol

(Bardhhaman), Lucknow, Varanasi, Kanpur, Allahabad, Mumbai, Pune, Panjim, Aurangabad,

Nagpur, New Delhi, Jaipur, Agra, Udaipur, Patna, Ranchi, Bhagalpur, Thiruvananthapuram,

& Cochin.

Loans against Shares / Debentures / Bonds

Scheme Rate of InterestEquity Plus Scheme 6.50% above Base Rate,

currently 16.50% p.a.

SBI Personal Loan

16

This scheme can be availed by any customer who is a salaried professional of good stature.

The self- employed doctor, engineer, architect, etc. can also avail this scheme after providing

suitable proof of annual income policy. The minimum loan amount that can be availed by

people residing at metro and urban places is 24,000/- INR while the amount is 10,000/- for

rural and semi-urban places. The interest rate is 16.75% P.A. and the net amount is repayable

in 48 easy monthly installments.

PERSONAL LOAN AGAINST THIRD PARTY SECURITY

Base Rate 10.00 % w.e.f. 13.08.2011

Loans against NSCs/KVPs/RBI Relief Bonds/Surrender Value of SBI Life /LIC/SBI Magnums, etc.

Tenure Rate of Interest

Up to 3 years 4.50% above Base Rate, currently 14.50% p.a.

More than 3 years and below 6 years

4.50% above Base Rate, currently 14.50% p.a.

SBI Educational Loan

This scheme can be availed for higher studies. However, the customer needs to produce

before the bank suitable proof of education. Let us have a look at the interest rates. The

maximum loan amount that is provided to students studying in India is 10, 00,000/- INR

while those studying abroad is 20, 00,000/- INR.

EDUCATION LOANS

SBI Student Loan Scheme

17

Loan Amount  Rate of Interest* (w.e.f. 27.02.2012)

For loans up to Rs.4 lacs 3.50% above Base Rate, currently 13.50% p.a.

Above Rs.4 lacs and up to Rs.7.50 lacs 3.25% above Base Rate, currently 13.25% p.a.

Above Rs.7.50 lacs 2.00% above Base Rate, currently 12.00% p.a.

 *(0.50% concession in interest for girl student)

(1% concession in interest for the entire tenure of loan if the interest is serviced during

moratorium period)

SBI Car Loan

How about purchasing that extravagant vehicle? Having financial problem? Don’t worry as

the SBI CAR LOAN is there to help you out. Have a look at the different schemes available

under this category:

SBI CAR LOAN SCHEME Tenure Rate of Interest

For all tenures

For Term Loan:0.75% above Base Rate, i.e. 10.75% p.a.For Overdraft:0.75% above Base Rate, i.e. 10.75% p.a.

 

 NRI Car Loan 

Tenure Rate of Interest

For all tenures 0.75% above Base Rate, i.e. 10.75% p.a

 Two- Wheeler Loan 

 Tenure Rate of Interest

Up to 3 years 8.25% above Base Rate i.e. 18.25% p.a.

  Used Vehicles

18

 

Tenure Rate of Interest

Up to 3 years 7.25% above Base Rate i.e. 17.25% p.a.

Above 3 yrs 7.50% above Base Rate i.e. 17.50% p.a.

  Certified Pre-owned Car Loan scheme  

Tenure Rate of Interest

Up to 3 years 6.00% above Base Rate i.e. 16.00% p.a.

Above 3 yrs 6.50% above Base Rate i.e. 16.50% p.a. 

SBI Housing Loan

This scheme helps the customer in receiving easy loan facility in order to build that fantastic

house he/she ever dreamed of.

HOME LOANS - INTEREST RATESWith effect from 07.08.2012

All Rate are floating only (Base Rate= 10.00% p.a.)

19

Loan Amount Linkage with Base Rate over the

tenor of the loan

Effective Rate

Up to Rs. 30.00 lacs 0.25% above Base Rate 10.25% p.a.

Above Rs. 30.00 lacs and up to Rs. 75.00 lacs

0.40% above Base Rate 10.40% p.a.

Above Rs. 75.00 lacs 0.40% above Base Rate 10.40% p.a.

No fixed rate option in any limit bracket

LOANS AGAINST GOLD ORNAMENTS, MORTGAGE OF PROPERTYBase Rate 10.00 % w.e.f. 13.08.2011

Loan against Gold Ornaments

Size of Credit Limit Rate of Interest

Up to Rs. 1,00,000/- 4.25% above Base Rate Floating, currently 14.25% p.a.

Above Rs. 1,00,000/- 4.75% above Base Rate Floating, currently 14.75% p.a.

Loan against Mortgage of Immovable Property

Size of Credit Limit(Term Loan)

Rate of Interest

Up to Rs. 1,00,00,000/- 5.25% above Base Rate Floating, currently 15.25% p.a.

Above Rs. 1,00,00,000/- 5.50% above Base Rate Floating, currently 15.50% p.a.

20

OTHER LOAN SCHEMES

Base Rate 10.00 % w.e.f. 13.08.2011

Other LoansType of Facility Rate of InterestClean Overdraft 8.25% above Base Rate, currently 18.25%

p.a.

Personal Loans Scheme (SBI Saral) 8. 50% above Base Rate floating, currently 18.50% p.a.

SBI Loan to Pensioners 4.75% above Base Rate, currently 14.75% p.a.

SBI Loan to Affluent Pensioners 4.75% above Base Rate, currently 14.75% p.a.

Festival Loan Scheme 6.75% above Base Rate, currently 16.75% p.a.

Loan against Bank Time Deposits (Domestic) 0.5% over the rate paid on Relative time deposit.

21

CHAPTER-II

REVIEW OF LITERATURE

REVIEW OF LITERATURE

The banking sector in India has made remarkable progress since the economic reforms in

1991.New private sector banks have brought the necessary competition into the industry and

spearheaded the changes towards higher utilization of technology, improved customer service

and innovative products. Customers are now becoming increasingly conscious of their rights

and are demanding more than ever before.

Robert B. Avery and Allen N. Berger had studied about the Loan commitments and

bank risk exposure. They studied about the Loan commitments increase a bank's risk by

obligating it to issue future loans under terms that it might otherwise refuse. However, moral

22

hazard and adverse selection problems potentially may result in these contracts being rationed

or sorted.

Sumit Agarwal, Souphala Chomsisengphet and John C. Driscoll had studied about the

Loan commitments and private firms. They studied that, Most loans are in the form of

credit lines. Empirical studies of line demand have been complicated by their use of data on

publicly traded firms, which have a wide menu of financing options.

In May 1991 Stephen F. Borde had studied about the “Is the Savings and Loan Industry

Facing Extinction?” This article tells about the Saving and loan crisis. Proposed solutions are

discussed in the context of the industry as it currently stands. With a somewhat similar

liability structure to that of banks (mainly short-term deposits), the asset structure of S&Ls is

quite different. Whereas banks assets consist of short-term loans, S&L assets consist largely

of long-term loans, such as home ownership mortgages. Therefore, in the absence of adequate

hedging measures, S&Ls are more vulnerable to interest rate risk, which can lead to lower

profits when interest rates rise.

In 1991 Susan M. Wachter and Paul S. Calemhad studied about the Community

Reinvestment and Credit Risk: Evidence from an Affordable Personal Loan Program. This

study examines the performance of personal loans originated by a major depository

institution in Philadelphia under a flexible lending program between 1988 and 1994.

In feb 1 2009 Vincent W. Yao and Eric Rosenblatt and Michael LaCour-Little had

studied about the unique paired loan dataset containing information on multiple conventional

conforming mortgage loans of extraction decisions over the period 2000-2006.

23

CHAPTER-III

NEED & OBJECTIVES

OF THE STUDY

NEED AND OBJECTIVES OF THE STUDY

3.1 NEED OF STUDY

The researches that were conducted in past by various professionals were regarding various

services but not done about the “Study Of different loan provided by SBI bank”. In

previous time not any study done regarding the “Study Of different loan provided by SBI

bank”

24

. This gap has been identified and it has led to the present research being under taken so, the

need was felt to cover the area as neglected, thus “Study Of different loan provided by SBI

bank” is studied.

3.2 OBJECTIVE OF THE STUDYThis study has been conducted with a variety of important objectives in mind. The following

provides us with the chief objectives that have tried to achieve through the study. The extent

to which these objectives have been met could judged from the conclusions and suggestions,

which appear in the later of this study.

The Chief Objectives of this study are:

I. To know the consumer perception about the different loans of SBI bank.

II. To study the problem faced by customer grievance.

III. To study whether the customers are satisfied with their service.

25

CHAPTER- IV

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research is an art of scientific investigation. In other word research is a scientific and

systematic search for pertinent information on a specific topic. The logic behind taking

research methodology into consideration is that one can have knowledge about the method

and procedure adopted for achievement of objectives of the project. With the adoption of this

others can evaluate the results also. Its main aim is to keep the researchers on the right track.

The methodology adopted for studying the objectives was surveying the saving account

holders. So keeping in view the nature of requirements of the study to collect all the relevant

26

information regarding the study collect direct personal interview method with structured

questionnaire was adopted for the collection of primary data.

Secondary data has been collected through the various magazines and newspapers and by

surfing on Internet. And the guide in the organization was consulted at many times.

SAMPLE DESIGN:-A sample design is a definite plan for obtaining a sample from a given

population. It refers to the techniques or the procedure the researcher would adopt in

selecting items for the sample. Sample design may as well lay down the number of items to

be included in the sample i.e. the size of the sample. Sample design is determined before data

are collected. Here we select the population as sample in our sample design. The selected

respondents should be as representatives of the total population.

POPULATION

The study aimed to include the customers of SBI, to make a analysis of different loan

schemes of this bank.

SAMPLE SIZE

A Sample size of 50 respondents will be taken for the current study because it is not possible

to cover the whole universe in the available time period. So it is necessary to take the sample

size. The sample will the peoples of age group lying between 15 to above 45 years. The

sample will be taken in the form of strata based on age, sex, and income group.

Sampling technique:

Sampling technique used in this study is ‘Random sampling’. The selected sample Size is 50.

Methods of Data Collection

Data was collected by using main two methods i.e. primary data and secondary data

PRIMARY DATA

27

Primary data is the data which is used or collected for first time and it is not used by anyone

in the past.

There are number of sources of primary data from which the information can be collected.

QUESTIONNAIRE:-This method of data collection is quite popular. Here in our research

we set 13 simple questions and request the respondents to answer these questions with correct

information.

RESPONDENTS:-Respondents helps in creation of more accurate idea about our research.

We personally meet the respondents inside and outside the bank.

SECONDARY DATA

Secondary data is the data which is available in readymade form and which is already used by

people for some purposes. There may be various sources of secondary data such as-

newspapers, magazines, journals, books, reports, documents and other published information.

JOURNALS AND PUBLICATIONS OF DIFFERENT BANKS :-We also take into

consideration the journals and publications issued by the bank at different times. we come to

know about the Branches, ATM, locations and other useful information.

MANUALS AND BROACHERS OF DIFFERENT BANKS:-We take the help of bank

staff and other people who gives us deep information and data which may not be available at

anywhere. They gives us there full co-operation.

INTERNET:-We also take into consideration the internet facility with which we collect lot of latest information.

Tools and Techniques:

As no study could be successfully completed without proper tools & techniques, same with

my project. For the better presentation and right explanation I used tools of statistics and

computer very frequently and I am very thankful to all those tools for helping me a lot. Basic

tools which I used for project are:

1. BAR CHARTS

28

2. PIE CHARTS

3. TABLES

Bar charts and pie charts are very useful tools for every research to show the result in a clear,

simple way. Because I used bar charts and pie charts in my project for showing data in a

systematic way. So I need not necessary for any observer to read all the theoretical detail,

simple on seeing the charts anybody that what is being said.

Technological Tools:

MS -WORD

MS-EXCEL

29

CHAPTER-V

DATA ANALYSIS ANDINTERPRETATION

5.2-ANALYSIS AND INTERPRETATION OF DATA

SBI BANK NO. OF RESPONDENTS =50

1. From how many years you are associated with this bank?Table 5.2.1

30

RESPONCE NO. OF RESPONDENTS %AGE A. Less than 1 year 10 20 %

B. 1-5 20 40 %

C. More than 5 years 20 40 %

TOTAL 50 100 %

Analysis:-Figure 5.2.1

Customers associated with SBI Bank0%5%

10%15%20%25%30%35%40%45%

Less than 1 year 1-5 More than 5 years

INTERPRETATION –In this chart it is very much clear that 20% respondents are

associated less than 1 year, 40% respondents are associated from 1-5 years, 40%

respondents are associated from more than 5 years.

2. How do you come to know about the different loan schemes of this

bank?

Table 5.2.2

RESPONCE NO. OF RESPONDENTS %AGE

A. News paper 25 50 %

B. Television 05 10 %

31

C. Internet 10 20 %

D. Other sources 10 20 %

TOTAL 50 100 %

Analysis:-Figure 5.2.2

50%

10%

20%

20%

Sources of information

News paperTelevisionInternetOther sources

INTERPRETATION–In this pie chart it is very much clear that 50% respondents came

to know from newspaper, 10% respondents came to know from television ,20% respondents

came to know from internet, 20% respondents came to know from other resources.

3. What type of loan you taken from bank?

Table 5.2.3

RESPONCE NO. OF RESPONDENTS %AGE A. Personal loan 18 36%

B. Agriculture loan 12 24%

C. Home loan 10 20%

D. Education loan 06 12%

32

E. Other loan 04 08%

TOTAL 50 100 %

Analysis:-Figure 5.2.3

Personal loan

Agriculture loan

Home loan Education loan

Other loan0%

5%

10%

15%

20%

25%

30%

35%

40%

Types of loan

Types of loan

INTERPRETATION –In this chart it is very much clear that 36% respondents taken

personal loan, 24% respondents taken agriculture loan, 20% respondents taken home loan,

12% respondents taken education loan, 08% respondents taken other loan.

4. Are you aware all term and conditions of the loan?

Table 5.2.4

RESPONCE NO. OF RESPONDENTS %AGE

A. Yes 15 30%

B. No 35 70%

TOTAL 50 100 %

33

Analysis :-Figure 5.2.4

30%

70%

Awareness about term and conditions of loan

Yes No

INTERPRETATION–In this pie chart it is very much clear that30% respondents know

all terms and conditions of the loan, 70% respondents had not know properly about all terms

and conditions of the loan.

5. Are you satisfy with the interest rate charges by your bank?

Table 5.2.5

RESPONCE NO. OF RESPONDENTS %AGE

A. Strongly agree 08 16%

B. Agree 12 24%

C.Strongly

disagree

18 36%

D. Disagree 12 24%

34

TOTAL 50 100 %

Analysis :-Figure 5.2.5

16%

24%

36%

24%

Level of satisfaction with interest rate charges by bankStrongly agree Agree Strongly disagree

INTERPRETATION–In this pie chart it is very much clear that 16% respondents are

strongly agreed by interest rate charges by bank ,24% respondents are agreed by interest rate

charges by bank, 36% respondents are strongly disagreed by interest rate charges by bank 

,24% respondents are  disagreed by interest rate charges by bank.

6. Do you agree that your bank loan processing is fast?

Table 5.2.6

RESPONCE NO. OF RESPONDENTS %AGE

A. Strongly agree 08 16%

B. Agree 10 20%

C. Strongly disagree 27 54%

D. Disagree 05 10%

TOTAL 50 100 %

35

Analysis :-Figure 5.2.6

16%

20%

54%

10%

Agree with loan processing is fastStrongly agree Agree Strongly disagree Disagree

INTERPRETATION – In this pie chart it is very much clear that 16% respondents

Strongly agree that bank loan processing is fast, 20% respondents agree that bank loan

processing is fast, 54% respondents strongly disagree that bank loan processing is fast, 10%

respondents disagree that bank loan processing is fast.

7. Do you satisfy with the after loan services provided by your bank are best as compare to other bank?

Table 5.2.7

RESPONCE NO. OF RESPONDENTS %AGE

A. Strongly agree 09 18%

B. Agree 15 30%

C. Strongly disagree 10 20%

36

D. Disagree 16 32%

TOTAL 50 100 %

Analysis :-Figure 5.2.7

18%

30%20%

32%

Satisfy with after loan services provided by bank

Strongly agree Agree Strongly disagree disagree

INTERPRETATION–In this pie chart it is very much clear that18% respondents are

strongly agreed by after loan services of the bank, 30% respondents are agreed by after loan

services of the bank ,20% respondents are strongly disagreed by after loan services of the

bank , 32% respondents are disagreed by after loan services of the bank.

8. Does the cost of loan is appropriate ,according to your demand ?

Table 5.2.8

RESPONCE NO. OF RESPONDENTS %AGE

A. Yes 17 34%

B. No 33 66%

TOTAL 50 100 %

37

Analysis :-Figure 5.2.8

34%

66%

Loan cost is appropriate according your demand

Yes No

INTERPRETATION–In this pie chart it is very much clear that34% respondents said

that loan cost is appropriate according to their demand, 66% respondents said that loan cost

is not appropriate according to their demand.

9. Are you satisfy with the employees behaviour of the bank?

Table 5.2.9

RESPONCE NO. OF RESPONDENTS %AGE

A. Yes 19 38%

B. No 31 62%

TOTAL 50 100 %

38

Analysis :-Figure 5.2.9

Yes No0%

10%

20%

30%

40%

50%

60%

70%Satisfy with employees behaviour of the bank

Satisfy with em-ployees behaviour of the bank

INTERPRETATION–In this chart it is very much clear that 38% respondents satisfied

with the employee behaviour of the bank, 62% respondents not satisfied with the employee

behaviour of the bank.

10. Does the bank give any discount upon loan services?Table 5.2.10

RESPONCE NO. OF RESPONDENTS %AGE

A. Yes 10 20%

B. No 40 80%

TOTAL 50 100 %

Analysis :-Figure 5.2.10

39

Yes No0%

10%

20%

30%

40%

50%

60%

70%

80%

90%Bank give any discount upon loan services

Bank give any dis-count upon loan servi...

INTERPRETATION–In this chart it is very much clear that 20% respondents said that

bank give discount upon loan services and 80% respondents said that bank does not give any

discount upon loan services.

11. Are you satisfy by the time taken in sanctioning the loan?

Table 5.2.11

RESPONCE NO. OF RESPONDENTS %AGE

A. Yes 26 52%

B. No 24 48%

TOTAL 50 100 %

40

Analysis :-Figure 5.2.11

YES52%

NO48%

Satisfy with bank time taken in sactioning the loan

INTERPRETATION–In this pie chart it is very much clear that 52% respondents are

satisfied by the time taken in sanctioning the loan, 48% respondents are not satisfied by the

time taken in sanctioning the loan.

12. Have you face any difficulty during taking the loan?

Table 5.2.12

RESPONCE NO. OF RESPONDENTS %AGE

A. Yes 35 70%

B. No 15 30%

TOTAL 50 100 %

41

Analysis :-Figure 5.2.12

Yes No0%

10%20%30%40%50%60%70%80%

Customers face any difficulty during taking the loan

Customers face any diffi-culty during taking the l...

INTERPRETATION–In this chart it is very much clear that 70% respondents face

difficulty during taking the loan, 30% respondents does not face any difficulty during taking

the loan.

13. Which grade you want to give loan schemes of your bank?

Table 5.2.13

RESPONCE NO. OF RESPONDENTS %AGE

A. Excellent 5 10%

B. Good 11 22%

C. Average 14 28%

D. Blow average 20 40%

42

TOTAL 50 100 %

Analysis :-Figure 5.2.13

Excellent Good Average Blow average0%5%

10%15%20%25%30%35%40%45%

Grade give to loan schemes of your bank

Grade give to loan schemes of your bank

INTERPRETATION– In this chart it is very much clear that 10% respondents give

excellent grade of the bank loan schemes,22% respondents  give good grade to the bank loan

schemes, 28% respondents give average grade to the bank loan schemes, 40% respondents 

give below average grade to the bank loan schemes.

43

CHAPTER-VI

FINDINGS

&

RECOMMENDATIONS

FINDING OF THE STUDY

1. Respondents related with SBI bank came to know about the different loan schemes

from newspaper.

2. Majority of the respondents of banking taken personal loan.

3. Respondents related with SBI Bank less know about terms and conditions.

4. Respondents related SBI less satisfy with the interest rate .

5. Loan processing of SBI bank is Slow.

44

6. Respondents related with SBI bank are less satisfy with the employee behaviour.

7. Majority of the respondents of SBI bank are disagreed with after loan services of the

bank

8. Majority of the respondents of SBI bank not satisfied with cost of loan is appropriate

according to their demand.

9. Majority of the respondents of bank said that bank does not give any discount upon

loan services.

10. Respondents related with SBI Bank less satisfy with the time taken in sanctioning the

loan.

11. Majority of the respondents related with SBI bank face difficulties during taking the

loan .

12. Majority of the respondents related with SBI bank give blow average grade of the

bank loan schemes.

RECOMMENDATIONS

1. Give the discount upon the loan services to increase more customers base.

2. Reduce difficulty during taking the loan.

3. Reduce the time taken in sectioning the loan.

4. Reduce the cost of loan to serve more customers.

5. Aware the customer about term and conditions of the loan schemes.

6. Improve the employee’s behavior.

45

46

CHAPTER-VII

LIMITATION OF THE STUDY

LIMITATION OF THE STUDY

Although best of the efforts were made to conduct a prefect survey but still it faces certain

limitation. Following were certain limitation of this project.

1. The survey was conducted only on 50 respondents.

2. Some of the respondents did not answer all the questions, which could hamper the

final results to a certain extent.

3. The sample size is small due to the specified reasons.

4. Findings are based on sample survey.

47

5. The sample – plan is too small to give the research a wide coverage with reference to

their opinion.

6. The respondents are not interested to give information related to their loan .

7. The educational & awareness level of the respondents with respect to the

questionnaires is low.

48

CHAPTER – VIII

CONCLUSION

CONCLUSION OF RESEARCH REPORT

During this research project I fill the questionnaires 50 Respondents from SBI bank. Majority

of the respondents of bank in taken personal loan. Respondents related with SBI bank know

less about terms and conditions of the loan . Majority of the respondents related with KCC

bank not face any difficulty during taking the loan as compare to SBI bank. Majority of the

respondents related with SBI bank give blow average grade of the bank loan schemes.

Respondents related with SBI bank less satisfy with the time taken in sanctioning the loan .

49

Majority of the respondents of bank said that bank does not give any discount upon loan

services. Majority of the respondents of SBI bank not satisfied with cost of loan is

appropriate according to their demand. Respondents related with SBI bank is less satisfy

with the employee behaviour . Respondents related with SBI bank less satisfy with the

interest rate. Loan processing of SBI Bank is slow .

From all this I conclude that SBI Bank provide not good loan services and many peoples are

unsatisfied from SBI bank.

50

CHAPTER – VIII

BIBLIOGRAPHY /REFERENCE

BIBLIOGRAPHY /REFERENCES

Books

1. Kothari C.R (2004) Research methodology: ”Method and tech”, second edition, new

age international publisher ,New Delhi.

2. Research Methodology, ICFAI publication.

3. S.P.Gupta Statistics Book ,V K publication.

51

Internet

1. http://en.wikipedia.org/wiki/State_Bank_of_India

2. http://www.indiahousing.com/sbi-bank/loans.

ANNEXUREQUESTIONNAIRE

I NANAK SINGH conducting a research on the topic “ STUDY OF

DIFFERENT LOANS PROVIDED BY SBI bank” and I request you to fill

52

the following questionnaire. This will take 3-5 minutes of your time .I promise

to keep the information confidential.

Demographic Information

Name ...............................................................

Qualification .......................................................

Age 15-25 26-35 36-45 Above 45

Gender Male Female

Occupation - Student Serviceman Businessman

House wife Government employee

Other

Place .....................................

1. From how many years you are associated with this bank?

a. Less than 1 year b. 1-5

c. More than 5 years

2. How do you come to know about the different different loan schemes of

this bank?

a.News paper b. Television

c.Internet d.Other resources

53

3. What type of loan you taken from bank?

a.Personal loan b. Agriculture loan

c. Home loan d. Education loan

e. Any other loan..........................................

4. Are you aware all term and conditions of the loan?

a. Yesb. No

5. Are you satisfy with the interest rate charges by your bank?

a. Strongly agree b. Agree

c. Strongly disagree d. disagree

6. Do you agree that your bank loan processing is fast?

a. Strongly agree b. Agree

c. Strongly disagree d. Disagree

7. Do you satisfy with the after loan services provided by your bank are

best as compare to other bank?

a. Strongly agree b. Agree c. Strongly disagree d. Disagree

8. Does the cost of loan is appropriate ,according to your demand ?

a. Yes b. No

9. Are you satisfy with the employees behaviour of the bank?

a. Yes b. No

54

10. Does the bank give any discount upon loan services?

a. Yes b. No

11. Are you satisfy by the time taken in sanctioning the loan?

a. Yes b. No

12. Have you face any difficulty during taking the loan?

a. Yes b. No

If yes then specify...............................................................

13. Which grade you want to give loan schemes of your bank?

a. Excellent b. Good

c. Average d. Blow average

Thanks for your co-operation

55