RETAIL BANKING IN

STATE BANK OF INDIA

SHIMLA (H.P.)

SUMMER TRAINING REPORT

SUBMITTED IN PARTIAL FULLFILMENT OF THE COURSE OF MASTER IN BUSINESS ADMINISTRATION

SUBMITTED TO: SUBMITTED BY:HEAD NIKITA DHILLONTRAINING AND PLACEMENT ROLL NO. 30/09DEPARTMENT MBA 2ND YEAR

Institute of Engineering&EmergingTechnologies, Baddi (H.P)

TABLE OF CONTENTS

S.No. CONTENTS Page No.1. Declaration 42. Acknowledgement 53. Preface 64. CHAPTER-1

Objectives, scope and limitations of the study Research methodology

78-11

5. CHAPTER-2 STATE BANK OF INDIA

Introduction to SBI SBI Group Financial performance Vision, mission, and values

12-20

6. CHAPTER-3 RETAIL BANKING

Characteristics Regulation Growth Future Challenges Segments

A. Deposit schemes:1) Current account2) Basic banking no frills account3) Premium saving account4) Saving bank account5) Term deposits

B. Personal finance:1) Home loan2) Car loan3) Education loan4) Property loan5) Personal loan

C. Services:1) Mobile banking services2) ATM3) ATM + Debit card4) Internet banking5) Demat services6) Public provident fund

21-24

25-32

33-46

47-54

7. CHAPTER-4 DATA ANALYSIS AND INTERPRETATION 55-62

8. CONCLUSION 63-649. SUGGESTIONS 65-6610. QUESTIONNAIRE 6711. BIBLIOGRAPHY 68

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DECLARATION

I hereby declare that this project work entitled “Impact of SBI Retail Banking on customer Satisfaction” is my original work, carried out under the guidance of my company guide Mr. Vishal Mahajan and has not been submitted to any other institute/ university or any organization apart from SBI, Shimla and IEET – Baddi (INSTITUTE OF ENGINEERING AND EMERGING TECHNOLOGIES – BADDI (H.P.)

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ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role in the success of any venture. In the present world of competition and success, project is like a bridge between the theoretical and practical working, willingly I prepared this project. First of all I would like to thank the supreme power, the almighty GOD who is obviously the one who has always guided me to work on the right path of my life. I would at the outset to thank.

Mr. Vishal Mahajan for granting me permission to undertake the project in SBI, Shimla.

I also thank to the staff of SBI who spent their valuable time in completion of my project.

At last but not the least I am heartily thankful of all those person who helped me directly or indirectly in completion of my project.

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PREFACE

One may SWOT but practice only makes man perfect. It is definitely necessary to have a command on the conceptual aspects of management practices but it is more necessary to acquire the art of management, as well management knowledge goes in vain if is application does not fetch desired results. The present project is an output of my expose to banking operations as occurring in the STATE BANK OF INDIA, Shimla.

The present work was confined to the study of “RETAIL BANKING” IN SBI. At the starting of the project the objectives, scope and limitations and research methodology is mentioned. The whole study is confined in three sections. Section one contains introduction and the profile of the company. Section two deals with retail banking and its three segments- deposits, loan and services. Section three includes the analysis and interpretation of data. At the end conclusion, suggestions and a questionnaire is prepared.

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OBJECTIVE OF THE STUDY

The main objective of this project is to study the awareness of the satisfaction of customers regarding the SBI Retail Banking .During this summer internship program period I have to achieve something, which is helpful for my career, and some value addition to the Banking Company. It gives me good opportunity to expose and creating good impression of corporate mind.1) To find out what type of problem customer are facing related to service delivered by SBI.2) To find out the level of customer satisfaction from the product marketing of SBI retail banking.

SCOPE OF THE STUDY

Money is the centre of world economy and Bank works as a central point for money. Banking industry is a very growing industry and among all the banks, particularly SBI is doing very well. In this time of global recession where the other companies are laying off their staffs but SBI has recruited more than 20000 employees in the year 2008.So there is a huge potential for getting jobs in SBI.

LIMITATIONS OF THE STUDY

1) The survey was conducted in the Shimla.2) Target customers and respondents were too busy persons, so it was difficult to get their time and view for specific questions3) Area covered for the project while doing job also was very large and it was very difficult to correlate two different customers / respondents’ views in a one.

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RESEARCH METHODOLOGY

RESEARCH OBJECTIVES:

To study the aspect of RETAIL BANKING in SBI Shimla..

To study the various Deposit schemes offered by SBI Bank.

To study and analyse the various Personal Loan Schemes offered by SBI Bank.

To study the Satisfaction Level of SBI Bank customers.

To study the different Services offered by the SBI Bank.

To analyse the general strengths & weaknesses relating to the banking Activities of SBI Shimla

TYPES OF REASEARCH:

Descriptive research

Analytical research

Qualitative research

Quantitative research

1. Descriptive research or EX-Post fact research:-

To conduct the research work accurately, we conduct the descriptive

research. It includes surveys and fact finding inquiry of different kinds.

2. Analytical research:-

In it we have to use the fact and information already available and

analyses of these to make an evaluation of project.

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3. Qualitative research:-

In selecting the appropriate research design of the study and the

type of data needed, the choice of data collection techniques is four grouped.

It is done for:-

Consumer needs.

Consumer’s preferences for band.

In depth understanding of consumers.

Availability for consumer.

4. Quantitative research:

Quantitative research is obtained to rate the different aspect on parameter.

Image of brands.

Brand equity

Expectation of customers

Awareness among customer for schemes.

Switch ability of customer.

Trial etc.

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METHODOLOGY

The project includes both primary and secondary sources of data. The data

collected through these sources has organization analyzed and interpret so as to

draw conclusion and arrive at appropriate recommendations.

a) Primary sources of data include the personal interview from various

accounts officer in the enterprise.

b) The secondary sources of data includes the annual report, web site of

HMT Limited Company which contain the detail which is helpful for

making my project report.

STEPS IN RESEARCH METHODOLOGY:

****Collection of data.

****Organization of data

***Presentation of data

***Analysis of data

***Interpretation of data

Collection of data :-

Both the primary and secondary data has been collected from the market and

company respectively. The secondary data was provided company and the

primary data was collected through the modicum of face to face interaction /

interview with the business person in the market.

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Organization of data :

Data once collected for further processing. Data collected by me carefully gone

through then the relevant and useful matter was assorted and properly

organized.

Presentation of data: -

The data collected is of no use unless and unstill it is given in the presentable

form. Thus after proper organization, the data is given in presentable form with

the complete details, with the help of diagram, pie chart etc.

Analysis of data :-

The data is carefully analyzed keeping in consideration both the pros and cons

for the purpose of arriving at concrete conclusion.

Interpretation of data :-

After carefully analyzed the data, it has been aptly interpreted in order to give

concrete conclusion and proper recommendation.

SAMPLING

Sampling is the act, process, or technique of selecting a suitable sample, or a representative part of a population for the purpose of determining parameters or characteristics of the whole population.

In my survey, I have taken convenience sampling.

My sampling is probability sampling as probability sampling that has been selected using simple random selection each unit in the population has a known chance of being selected.

Moreover, my sampling technique is simple random technique as in simple Random sampling; each unit of the population has an equal probability of inclusion in the sample. In my survey, each respondent have equal opportunity to be selected and the data, which I collected, was from customers of SBI.

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INTRODUCTION TO STATE BANK OF INDIA

INTRODUCTION TO STATE BANK OF INDIA:

12

Offices of the Bank of Bengal

Evolution of SBI: Born as Bank of Calcutta (2 June 1806). Renamed Bank of Bengal (2 January 1809). Bank of Bombay (15 April 1840). Bank of Madras (1 July 1843). All three were called Presidency Banks. Amalgamated as Imperial Bank of India on 27 January 1921.

Type Public (BSE: 500112, LSE: SBID) Industry Banking Financial services Founded July 1, 1955 Headquarters Mumbai, Maharashtra, India Key people O. P. Bhatt (Chairman) Products Investment Banking Consumer Banking Commercial Banking Retail Banking Private Banking Asset Management Pensions Mortgages Credit Cards Revenue ▲ $28.212 billion (2010)Profit ▲ $2.473 billion (2010)Total assets ▲ $323.043 billion (2010)Total equity ▲ $18.519 billion (2010)Owner(s) Government of India Employees 205,896 (2010)

Birth of SBI:

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An Act was passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955.

State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates).

State Bank of India was thus born with a new sense of social purpose with 480 offices, 3 Local Head Offices and a Central Office.

History of SBI:The evolution of State Bank of India can be traced back to the first decade of the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on 2ndJanuary 1809. It was the first ever joint-stock bank of the British India, established under the sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the modern banking scenario in India, until when they were amalgamated to form the Imperial Bank of India, on 27 January 1921. An important turning point in the history of State Bank of India is the launch of the first Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in general and the rural sector of the country, in particular. Until the Plan, the commercial banks of the country, including the Imperial Bank of India, confined their services to the urban sector. Therefore, in order to serve the economy as a whole and rural sector in particular, the All India Rural Credit Survey Committee recommended the formation of a state-partnered and state-sponsored bank.

The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This resulted in making the State Bank of India more powerful, because as much as a quarter of the resources of the Indian banking system were controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries.

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The State Bank of India emerged as a pacesetter, with its operations carried out by the 480 offices comprising branches, sub offices and three Local Head Offices, inherited from the Imperial Bank. Instead of serving as mere repositories of the community's savings and lending to creditworthy parties, the State Bank of India catered to the needs of the customers, by banking purposefully. The bank served the heterogeneous financial needs of the planned economic development.

STATE BANK GROUP:

ASSOCIATE BANKS State Bank of India has the following 6 Associate Banks (ABs) with

controlling interest ranging from 75% to 100%. State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of Indore (SBIn) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Travancore (SBT) The six ABs have a combined network of 4596 branches in India, which

are fully computerized and on CBS. The ABs has 1070 ATMs, which are networked with SBI ATMs,

providing value added services to clientele.

FOREIGN BANKING SUBSIDIARIESState Bank of India has the following Foreign Banking Subsidiaries:

State Bank of India SBI International (Mauritius) Ltd. State Bank of India (California) Indian Ocean International Bank Ltd. Commercial Bank of India LLC, Moscow PT Bank Indo Monex.

NON-BANKING SUBSIDIARIES / JOINT VENTURES

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State Bank of India has the following Non-Banking Subsidiaries / Joint Ventures:

SBI Capital Markets Ltd. (SBICAP) SBICAP Securities Ltd. (SSL) SBICAPS Ventures Ltd. (SVL) SBICAP (UK) Ltd. SBI Funds Management Pvt. Ltd. (SBIFMPL) SBI Factors & Commercial Services Pvt. Ltd. (SBIFACTORS) SBI DFHI Ltd. SBI Cards & Payment Services Pvt. Ltd. (SBICSPL) SBI Life Insurance Company Ltd. (SBILIFE) SBI Mutual Funds Trustee Company Pvt. Ltd.

OTHERSIn addition to these, there are other Subsidiaries / Jointly Controlled Entities such as:

SBI Commercial and International Bank Ltd. SBICAP (UK) Ltd. SBI Funds Management (International) Ltd. GE Capital Business Process Mgmt. Services Pvt. Ltd. C-Edge Technologies Ltd.

All these together constitute this mammoth organization the “STATE BANK”

FINANCIAL PERFORMANCE:

BALANCE SHEET OF STATE BANK OF INDIA AS ON 31ST MARCH 2010 (Rs. In Cr.)

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CAPITAL & LIABILITIES :

Owners' FundEquity Share CapitalShare Application MoneyPreference Share CapitalReserves & SurplusLoan FundsDepositsBorrowings made by the bankOther Liabilities & ProvisionsTotal

ASSETS:Cash & Balances with RBIMoney at call and Short NoticeInvestmentsAdvancesFixed AssetsGross BlockLess: Revaluation ReserveLess: Accumulated DepreciationNet BlockCapital Work-in-progressOther AssetsMiscellaneous Expenses not written offTotalNoteContingent liabilitiesBook Value of Unquoted InvestmentMarket Value of Quoted Investment

Mar` 10(current year)

634.880065314.32

804116.23103011.680336.71053414

61290.8734892.98285790.07631914.15

11831.6307713.94117.72295.1835112.7601053414

596366.4100

Mar` 09(previous year)

634.880057312.82

742073.1353713.68110697.57964433

55546.1748857.63275953.96542503.2

10403.0606828.653574.41263.4437733.270964433

767567.5200

PROFIT AND LOSS OF STATE BANK OF INDIA (Rs. In cr.)

Income :Operating Income

Expenses:

Mar` 10

85909.36

Mar` 09

74880.76

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Financial ExpensesPersonnel ExpensesSelling ExpensesAdministrative ExpensesExpenses CapitalisedOperating ExpenditureOperating ProfitOther Recurring IncomeAdjusted PBDITProvisions MadeDepreciationOther Write offsAdjusted PBTTax ChargesAdjusted PATNon Recurring ItemsOther Non Cash adjustmentsReported Net ProfitEarnings Before AppropriationEquity Dividend Preference Dividend Retained Earnings

47322.4812754.65224.0511029.6607133114578.541051.1562952.17-646.1932.66015343.136166.629176.51-10.46091679166.391904.6507024.99

42915.299747.31251.237361.9806027514604.94894.2658414.49-503.24763.14015239.36115.129124.18-2.95091219121.571841.1507032.38

CASH FLOWS OF STATE BANK OF INDIA

Profit Before TaxNet Cash Flow-Operating ActivityNet Cash Used In Investing ActivityNet Cash Used in Fin. ActivityNet Inc/Dec In Cash And EquivalentCash And Equivalent Begin of YearCash And Equivalent End Of Year

Mar` 10

13926.1-1804.99-1761.52-3359.67-6926.18103110.0296183.84

Mar` 09

14180.6429479.73-1651.935097.3832925.1871478.62104403.8

VISION, MISSION AND VALUES OF SBI

Importance Of Vision, Mission, and Values:Vision, Mission and Values are the beacon lights by which organizations world over set their strategies and then align their everyday priorities. Together these statements define the essential Organization: its purpose, its philosophy and its form...

What is Vision?•The Vision acts as a source of constant inspiration, a guiding light for the future.

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•The Vision statement presents a picture of the desirable future.

What is Mission?•The mission puts the vision in action. •It is what you do to actualize your vision: your plans, your strategies, your targets, your numbers, and your activities.• It concentrates on the present; it gives us an insight into the effort and direction required to achieve the desired future.

What are Values?•Values are the basis on which you shape your actions so that your vision can be reached.

OUR VISION:MY SBIMY CUSTOMER FIRSTMY SBI FIRST IN CUSTOMERSATISFACTION

OUR MISSION:•We will be prompt, polite and proactive with our customers.•We will speak the language of young India.•We will create products and services that help our customers achieve their goals.•We will go beyond the call of duty to make our customers feel valued.•We will be of service even in the remotest part of our country.•We will offer excellence in services to those abroad as much as we do to those in India.•We will imbibe state of the art technology to drive excellence.

OUR VALUES:

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•We will always be honest, transparent and ethical.•We will respect our customers and fellow associates.•We will be knowledge driven.•We will learn and we will share our learning.•We will never take the easy way out.•We will do everything we can to contribute to the community we work in.•We will nurture pride in India.

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RETAIL BANKING

RETAIL BANKING

Retail banking refers to banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, etc.Retail Banking refers to the efforts of the bankers to reach up to the customers on both fronts of the balance sheet i.e., Liabilities side as well as Assets side.

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Under the liabilities side, we have deposits. Under the assets side, we have credit schemes of the various banks.

Defining retail banking activity:Retail banking activity is commonly understood to comprise: • banking services for consumers (individuals/private households) and • banking services for small- and medium-sized enterprises (SMEs).

Authority has used the following definitions for the purposes of the sector inquiry:

• Personal banking, i.e. banking products and services for consumers including current accounts (and related services such as ATM, direct debit and credit transfers), sight deposits and other savings accounts, credit lines/overdrafts (no limits on individual asset size) and consumer loans;

• business banking, i.e. banking services for enterprises up to a maximum turnover of EUR 10 million annually and including services such as current accounts, term loans and credit lines. This report, following industry and literary usage, will also use the term ‘SME banking’ or ‘SME customers’ for this sub-segment

General characteristics of retail banking markets :The supply side of retail banking markets shows common features that are typical for banking markets in general. The main difference between retail banking and other banking fields is the fragmented demand side of the first, comprising individual consumers and small enterprises. In the following, the characteristics of the supply and demand sides of the market will thus be discussed separately.

The demand-side of retail banking markets is, as would be expected, fragmented. Bank customers are often faced with information asymmetry, i.e. lack of full information about the products and services on offer and hence cannot make meaningful comparisons. Moreover, there are numerous barriers to customer mobility (e.g. tying and bundling of products, switching costs such as closure charges, etc.) that result in a certain reluctance to switch suppliers, hence making price competition less efficient.

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Regulation of retail banking :Across the EEA, competition authorities are increasingly turning their attention to banking markets. Competition authorities in both Iceland and Norway have dealt with several cases involving retail banking markets over the years.14 it is by now firmly established that EEA competition law applies to the banking sector. One tool of prudential regulation is entry regulation by means of bank license requirements. This is explainable by the rules on own funds adequacy. However, the promotion of stability and the avoidance of a systemic crisis cannot justify all occurring entry restrictions. Such restrictions may also be used by governments to prevent foreign entries or takeovers and thus impede effective competition. Another regulatory issue that also affects market entry concerns specific rules on the ownership and activity of certain types of banks such as savings banks and co-operative banks. The Authority scrutinizes advantages provided to certain financial institutions by means of State aid control in order to ensure a level playing field for all market participants and to enhance undistorted competition. In particular, the Authority ensures that public and private institutions operate under similar conditions by removing unlimited state guarantees or fiscal advantages favoring particular banks and by applying the so-called Market Economy Investor Principle (MEIP)

Drivers Of Retail Growth: CHANGING CONSUMER DEMOGRAPHICS

Growing disposable incomes Youngest population in the world Increasing literacy levels Higher adaptability to technology Growing consumerism Fiscal incentives for home loans Changing mindsets-willingness to borrow/lend Desire to improve lifestyles Banks vying for higher market share

Future of Retail Banking: The accelerated retail growth has been on a historically low base Penetration continues to be significantly low compared to global bench

marks Share of retail credit expected to grow from 22% to 36%

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Retail credit expected to grow to Rs.575, 000 crs by 2010 at an annual growth rate of 25%

Dramatic changes expected in the credit portfolio of Banks in the next 5 years

Housing will continue to be the biggest growth segment, followed by Auto loans

Banks need to expand and diversify by focusing on non urban segment as well as varied income and demographic groups

Rural areas offer tremendous potential too which needs to be exploited.

Challenges: Sustaining Customer loyaltyNPA reduction & Fraud preventionAvoiding Debt Trap for customers

Bringing Rural masses into mainstream banking

SEGMENTS IN RETAIL BANKING

A. DEPOSIT SCHEMES

B. PERSONAL FINANCE

C. SERVICES

A) DEPOSIT SCHEMES:

Deposits means an amount of money placed with a financial institution either at

call (redeemable or withdrawals on demand) or for a fixed period. If fixed, the

deposit would earn a higher rate of interest and be called a fixed or term

deposit.

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Deposit scheme means an arrangement whereby an individual or organization

may place cash under the safekeeping of a financial institution. It is understood

that the institution may invest the cash and pay the depositor a specified amount

of interest and that the depositor can reclaim the full value of the account

according to the agreed upon procedures governing the account.

1. CURRENT ACCOUNT

Benefits

  Card Convenience

 Get Free ATM cum Debit Card and have access to the widest network of ATMs

across the country to withdraw cash, enquire about your balance, etc. Moreover,

your card enables you to shop at a large number of Merchant Establishments in

India. You can also avail yourself of our International ATM-cum-Debit Card

which can be used within as well as outside India, at a nominal fee. 

Easy and Wide Accessibility  

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Transact at your convenience, saving time and cost through SBI Internet Banking.

You can also withdraw cash from Maestro endorsed ATMs of other banks under bilateral sharing, at a nominal fee.

Monitoring Your Account Monitor and control your funds through SBI Internet Banking or/ and through Passbook/ statement of account facility.

Transaction Ease 

Unlimited number of payments

Make payments by giving us standing instructions

Remit funds from any part of the country to your account.

Upcountry Cheque Collection facility.

 

Other Benefits 

Overdraft facility.

Transfer of accounts between our wide network of branches without any

charge.

Nomination Facility - Available.

Low minimum balance requirements.

2) BASIC BANKING -NO FRILLS ACCOUNT

This account comes with very low minimum balances as well as low/ nil charges, to cater to the needs of individuals from the vast sections of population

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who are, otherwise, not fulfilling certain conditions of our existing Savings Bank account requirements. Details are as under:

Eligibility: Individuals of 18 years and above earning a gross income of Rs.5000/- p.m or less.

Mode of operation: Single/ joint

Initial deposit amount: Rs.50/- to open the account

Minimum balance: NIL

Maximum balance/ amount: Rs.10, 000/-, being the total value of business connection of the account holder, including other deposit accounts.

Rate of interest: As applicable to Savings Bank account, i.e. 3.5% p.a.

Cheque facility: Available.

ATM-cum-debit card: Will be issued free of charge.

Internet Banking facility: Not available

3) PREMIUM SAVINGS ACCOUNT

Our Premium Savings Account provides an enriched version of Savings Bank account consisting of various concessions and add-ons. It is suitable for our High Net worth Individual/ Mass Affluent customers.

Brief features: Eligibility Residents, above 18 years of ageMode of Holding

Singly/ Jointly/ Jointly with survivorship benefits.

Type of account

Savings Bank account.

Available at

At all CBS branches

Minimum balance

i) Savings Bank Component: Rs.25,000/- ii) MOD Component: Each MOD Rs. 10,000/-

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Rate of interest

i) Savings Bank Component: As applicable to Savings Bank account. ii) MOD Component: As applicable to the Term Deposits of tenure as opted by the customer.

Period of deposit

1 year to 5 years

Facilities available

i) Cheque facility ii) Multi-city chequesiii) ATM- cum-Debit card facilityiv) Internet Banking facilityv) SMS Alert

Penalties i) If minimum balance is not maintained, Rs. 500/- will be charged per quarter.ii) Closing the account before completion of 12 months: Rs. 500/-

4) SAVINGS BANK ACCOUNT Our Savings Bank Account helps you to plan and save for your future

financial requirements. Your savings remain liquid, safe and earn

moderate interest.

 Benefits  

Card Convenience Get Free ATM cum Debit Card and have access to the widest network of ATMs

across the country to withdraw cash, enquire about your balance, etc. Moreover,

your card enables you to shop at a large number of Merchant Establishments in

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India. You can also avail yourself of our International ATM-cum-Debit Card,

which can be used within as well as outside India, at a nominal fee. Non

Personalised Welcome Kit containing 10 cheque leaves and ATM card is issued

at the time of account opening.

  Easy and Wide Accessibility

 Transact at your convenience, saving time and cost through SBI Internet Banking.

You can also withdraw cash from Maestro endorsed ATMs of other banks

under bilateral sharing, at a nominal fee.

  Monitoring Your Account

 Monitor and control your funds through SBI Internet Banking or/ and through

Passbook/ statement of account facility.

Moderate Earning

Our Savings Bank Account earns you an interest at the rate of 3.5% p.a.,

compounded half yearly. It is calculated on daily product basis w.e.f.

01.04.2010.

Value Added Features 

Transfer of accounts between our wide network of branches without any

charge.

Nomination facility – Available

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25 cheque leaves free, in a year

Minimum balance requirements and charges per quarter for violation

of the stipulations, as mentioned in brackets there against - centre wise:-

 

Centres Cheque operated account

Ordinary account 

Metro/Urban/Semi-Urban

Rs.1000 (Rs.200)

Rs. 500(Rs.200)

Rural Rs.500 (Rs.100)

Rs. 250 (Rs.100)

 

 

5) TERM DEPOSITS Now you can earn a higher income on your surplus funds by investing those

with us. We provide security, trust and competitive rate of interest.

Flexibility in period of term deposit from 15 days to 10 years.

Affordable Low Minimum Deposit Amount: You can open a term

deposit with SBI for a nominal amount of Rs.1000/- only.

Please check our Interest Rates online or simply email through our

Helpline.

Flexibility in choosing the amount you wish to invest and the maturity

period.

 

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Highlights: 

Safety - We understand the value of your hard earned money and

continue to deliver on our promise of safety and security over 200 years.

Loan /overdraft facility: You can avail a loan/overdraft against your

deposit. SBI provides you loan / overdraft up to 90% of your deposit

amount at nominal cost. So you continue to earn interest in your deposit

and still can meet your urgent financial requirements.

Premature Withdrawal: Interest to be charged on premature withdrawal

of term deposits at 1.00% below the rate applicable for the period deposit

has remained with the Bank.

Transferability: Transfer of Term Deposits between our wide network

of   branches without any charge.

Automatic Renewals:  There is no need for you to keep track of the

maturity of your deposits.

SBI TAX SAVINGS SCHEME, 2006

A unique product which offers higher rate of interest along with tax benefits. Specially designed to cater to the needs of the Income Tax assessees.The distinctive features of this scheme are as below:

PurposeTo enable our customers to place long term deposits to earn higher rate of interest and also to avail the tax benefits under section 80C of Income Tax Act, 1961.

EligibilityResident assessee for himself/ herself as an individual or in the capacity of the Karta of the Hindu undivided family, having Income tax Permanent Account Number

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Mode of Operation

Singly or Jointly

Minimum Deposit

Rs. 1,000/- or multiples thereof

Maximum Deposit

Not exceeding Rs. 1,00,000/- in a year

Type of account

Term Deposit (TD) account / Special Term Deposit (STD) account

Tenure Minimum: 5 years - Maximum: 10 years

Transferability among branches

Allowed

B) PERSONAL FINANCE

1. HOME LOAN

State Bank of India has a variety of schemes under Personal Finance to satisfy varying needs of the banking public  

"THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ Consumer Awards along with the MOST PREFERRED BANK AWARD in a survey conducted by TV 18 in association with AC Nielsen-ORG Marg in 21 cities across India.

SBI HOME LOANS now offers Interest Rates concessions on GREEN HOMES in accordance with SBI's commitment to Environment protection.

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SBI Home Loans come to you on the solid foundation of trust and transparency built in the tradition of State Bank of India.

 

SBI Home Loans Unique Advantage:

  Package of exclusive benefits.

  Lowest interest rates.

  Low processing charges.

  No hidden costs or administrative charges.

  No prepayment penalties.

  Over 12000 branches nationwide.

Eligibility:

Minimum age: 18 years as on the date of sanction

Maximum age: limit for a Home Loan borrower is fixed at 70 years.

Loan Amount :

Actual loan amount will be determined taking into consideration such factors as applicant’s income and repaying capacity, age, assets and liabilities, cost of the proposed house/flat etc.

Security:

           Equitable mortgage of the property

           Other tangible security of adequate value like NSCs, Life Insurance policies etc., if the property cannot be mortgaged

 

Margin:

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Loan Amount Margin (Min.)

Maximum LTV Ratio (Max.)

Upto Rs. 75 Lacs 20% 80%

Above Rs. 75 Lacs. 25% 75%

 

*LTV ratio - Loan to value ratio.

Home Loans – Processing Fee

The revised processing fee structure (including service tax) from 9th November 2009 is as under:

Loan Amount Processing Fee(Revised)

Upto Rs.5 Lac Rs.1000/-

Above Rs.5 Lac and upto Rs.10 Lac Rs.2000/-

Above Rs.10 Lac and upto Rs.20 Lac Rs.5000/-

Above Rs.20 Lac and upto Rs.50 Lac Rs.7,000/-

Above Rs.50 Lac and upto Rs.1 Cr Rs.8,000/-

Above Rs.1 Cr and upto Rs.5 Cr Rs.10,000/-

Above Rs.5 Cr Rs.20,000/-

Pre-closure Penalty

No penalty if the loan is preclosed from own savings/windfall gains for which documentary evidence is produced by the customer.

34

List of papers/ documents applicable to all applicants:

Completed loan application 3 Passport size photographs Proof of identify (photo copies of Voters ID card/ Passport/ Driving License/ IT PAN card) Proof of residence (photo copies of recent Telephone Bills/ Electricity

Bill/ Property tax receipt/ Passport/ Voters ID card) Proof of business address for non-salaried individuals Statement of Bank Account/ Pass Book for last six months Signature identification from present bankers Personal Assets and Liabilities statement

Repayment period: Maximum 25 years (or) Up to the age of 70 years (the age by which the loan should be fully repaid) of the borrower, whichever is early.

SBI EASY HOME LOAN (JULY 2010)(Base Rate =7.50% p.a.)

Interest rate for proposals sanctioned between 1st July2010 and 30th September 2010.

Loan amount Maximum Rs.50 Lacs

Facility Type OD (MaxGain) or TL

Interest during first year 8% p.a.(Fixed)

2nd & 3rd year 9% p.a.(Fixed)

Floating interest rate after 3rd year

1.75% above Base Rate, Currently effective rate being 9.25% p.a.

Fixed interest rate after 3rd year

3.50% above the Base Rate prevailing at the time of reset,with a reset frequency of 5 years.

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2. CAR LOAN

Move ahead in life with SBI Advantage Car Loans! If you have been putting off purchasing premium Car, we invite you to go through SBI Advantage Car Loan Scheme.

Lowest interest rate, Low processing fee, processed through speedy delivery channels with total transparency.

Financing for ON ROAD PRICE which include vehicle registration charges, insurance, one-time road tax and accessories.

Well, what are you waiting for? Just contact any of our branches (more than 6000) that offer Car Loans or our Personal Banking Branches and give wheels to your desire!

We offer SBI Car Loan scheme to purchase:

A new car, jeep, Multi Utility Vehicle (MUV) or SUV (any make or mod el)

Enjoy the SBI Advantage:

Excellent service and lower costs. A quick survey of similar schemes available elsewhere and you will find that SBI Car Loans for new and old vehicles offer you:

Lowest interest rates Longer repayment period of upto 84 months. No hidden costs or administrative charges. Finance for one-time road tax, registration fee, insurance premium

and accessories No advance EMIs. (Some Banks/companies ask you to pay one or more

EMIs at the time of disbursement of loan, thereby effectively reducing your loan amount.)

Complete transparency Always

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Purpose

Term Loans & Overdraft will be sanctioned by the Bank for purchase of new passenger cars, Multi Utility Vehicles (MUVs) and SUVs with minimum loan component of Rs. 5.0 lakh and above.

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 proprietary/partnership firms

who is an income tax assessee Net Annual Income Rs. 2, 50,000/- and above.

Loan Amount

There is no upper limit for the amount of a car loan. A maximum loan amount of 4 times the net annual income can be sanctioned. If married, your spouse's income could also be considered provided the spouse becomes a co-borrower in the loan. The loan amount includes finance for one-time road tax, registration and insurance!

No ceiling on the loan amount for new cars.

Type of Loan 1. Term Loan 2. Overdraft - a) For New vehicles only                     b) Minimum loan amount: Rs. 5 lakhs Documents Required

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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 deductions7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years for

professional/self-employed/businessmen duly accepted by the ITO wherever applicable to be submitted.

8. Proof of official address for non-salaried individuals.

Margin New / Used vehicles: 15% of the on the road price.

RepaymentYou enjoy the longest repayment period in the industry with us. Repayment period:For Salaried, For Self-employed & Professionals : Maximum of 84 months

Prepayment Penalty:

Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain conditions.Processing Fee:0.50% of Loan amount and to be paid up front.Minimum: Rs. 500/-Maximum Rs. 10,00025% of Processing fee will be retained if application is rejected after pre-sanction survey.

SecurityAs per bank's extant instructions.

w.e.f. 01.07.2010 (Base Rate 7.50 %) SBI EZEE CAR LOAN SCHEMESL. No

PARAMETER SCHEME

DETAILS

1 Applicable to All New Car Loans to Public2 Scheme Period From July 1, 2009 to September 30, 2010

3 Interest RatePeriod Term Loan OverdraftFirst year 8% Fixed 8.5% fixed

38

For 2nd & 3rdyear

10% fixed 10.5% fixed

From 4th Year Onwards: The floating interest rate will be resetto applicable card rate contracted on the date ofsanction. Currently the rates are:Period Term Loan OverdraftFor 4th & 5th year

3.75% above Base Rate  i.e.11.25%

4.25% above Base Rate  i.e.11.75%

For 6th & 7thyear

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 underany tie-up arrangement or otherwise below theOffer rate.

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

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Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition 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

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 AmountRepayment Period in Years

Studies in India Rs. 10.0 Lacs 5-7 Studies Abroad Rs. 20.0 Lacs 5-7 

 

Security

AmountFor 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

Above Rs. 4 Lacs to Rs. 7.50

Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, weive

40

Lacs

third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower".

Above Rs. 7.50 Lacs.

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%

 

Documentation Required

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

Base Rate 7.50 % w.e.f. 01.07.2010

41

 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.

 (0.50% concession in interest for girl student)  

4. PROPERTY LOAN

A dream comes true! An ALL PURPOSE LOAN for anything that life throws up at you!! Do you need funds for a Marriage ceremony, want to take your family to a well-deserved holiday or for a sudden medical emergency? You have some property, but would rather not sell it? Then why not avail of this ALL PURPOSE LOAN from SBI? SBI now makes it very much possible for you to only keep your property but also have liquid funds.

Enjoy the SBI Advantage

Complete transparency in operations Access this loan from our wide network of branches Interest rates are levied on a monthly/daily reducing balance method Lowest processing charges.

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Long repayment period of 60 months, upto 120 months for salaried individuals with check-off facility

No Hidden costs or administrative charges. No prepayment penalties. You can have surplus funds at any time thereby

conveniently reducing your loan liability and interest burden. Property Loan Scheme Avail of an All-Purpose loan against mortgage of any of your property. We offer you these loans at all our Personal Banking Branches and those branches having Personal Banking Divisions amongst others.

Purpose This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If amount of loan is Rs.25.00 Lacs and above then purpose of loan will have to be specified along with an undertaking that loan will not be used for any speculative purpose whatever including speculation on real estate and equity shares.

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

B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net Annual Income (others) is in excess of Rs.1,50,000/-.

The income of the spouse may be added if he/she is a co-borrower or a guarantor.

C. Maximum age limit: 60 years.

Loan Amount

Minimum: Rs.25, 000/- Maximum: Rs.1 crore. The amount is decided by the following calculation:

24 times the net monthly income of salaried persons (Net of all deductions including TDS) OR

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

MarginWe will finance upto 60% of the market value of your property.

InterestTerm Loan 1.00% above SBAR. i.e.13.25% p.a. Floating for loans upto Rs.1.00 crore. In other cases 1.25% above SBAR i.e.13.50% p.a. Floating (w.e.f. 01.01.2009)

RepaymentMaximum of 60 equated monthly installments, upto 120 months for salaried individuals with check-off facility. You could opt to divert any surplus funds towards prepayment of the loan without attracting any penalty.

5. SARAL PERSONAL LOANDo you want funds readily available to you whenever you desire or need, be it a sudden vacation that you plan with your family or urgent funds required for medical treatment? SBI Saral - Personal Loan is the answer to your questions. Access this facility from over 3000 branches across the country and confidently face the challenge of meeting any kind of personal expenses!!  Enjoy the SBI Advantage: 

Low interest rates. Further, we charge interest on a daily reducing balance!!

Low processing charges; only 2%-3% of loan amount No hidden costs or administrative charges. No security required ……which means minimal

documentation…something that you had always wanted.

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No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan (1% of the loan amount will be charged if you repay the loan before 6 months)

Long repayment period of up to 48 months.

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

Salient Features Loan AmountYour personal loan limit would be determined by your income and repayment capacity. Minimum: Rs.24, 000/- in metro and urban centersRs.10, 000/- in rural/semi-urban centersMaximum: 12 times Net Monthly Income for salaried individuals and pensioners subject to a ceiling of Rs.10 Lacs in all centers

Documents RequiredImportant documents to be furnished while opening a Personal Loan Account: For existing bank customersPassport size photograph From salaried individuals Latest salary slip and Form 16

45

Repayment The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to, without attracting any prepayment penalty.

SecurityNIL

Processing Fee Processing charges are 2-3% of the loan amount. This is amongst the lowest fees in the industry. Processing fees have to be paid up front. There are no hidden costs or other administrative charges.

C) SERVICES

1. MOBILE BANKING SERVICESState Bank Freedom – Your Mobile Your BankAway from home, bills can be paid or money sent to the loved ones or balance enquiries done anytime 24x7!!! That is what State Bank Freedom offers -convenience, simple, secure, anytime and anywhere banking.

Mobile Banking Service over Application/ Wireless Application Protocol (WAP)

The service is available on java enabled mobile phones over SMS/ GPRS where the user is required to download the application on to the mobile handset. The service can also be availed via WAP on both java and non java phones with GPRS connection.

The following functionalities are available in the application based service/ WAP:

Funds transfer (within and outside the bank –using NEFT)

46

Enquiry services (Balance enquiry/ Mini statement) cheque book request

Demat Enquiry Service (Portfolio value, Request for DIS booklet, Value of holdings, statement of charges, Transaction status etc.)

Bill Payment (Utility bills, credit cards, Insurance premium payments) Donations, Subscriptions

M Commerce (Mobile Top Up, Top up of Tatasky, BigTV, SunDirect, DishTV connections and receive recharge pins for DigitalTV/Videocon d2h, Merchant payment, SBI life insurance premium)

2. ATM SERVICES

State Bank offers you the convenience of over 8000 ATMs in India, the largest network in the country and continuing to expand fast! This means that you can transact free of cost at the ATMs of State Bank Group (This includes the ATMs of State Bank of India as well as the Associate Banks – namely, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Saurashtra, and State Bank of Travancore) and wholly owned subsidiary viz. SBI Commercial and International Bank Ltd., using the State Bank ATM-cum-Debit (Cash Plus) card.

KINDS OF CARDS ACCEPTED AT STATE BANK ATMs

Besides State Bank ATM-Cum-Debit Card and State Bank International ATM-Cum-Debit Cards following cards are also accepted at State Bank ATMs: -

1) State Bank Credit Card

2) ATM Cards issued by Banks under bilateral sharing viz.  Andhra Bank, Axis Bank, Bank of India, The Bank of Rajasthan Ltd., Canara Bank, Corporation

47

Bank, Dena Bank, HDFC Bank, Indian Bank, Indus Ind Bank, Punjab National Bank, UCO Bank and Union Bank of India.

3) Cards issued by banks (other than banks under bilateral sharing) displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos

4) All Debit/ Credit Cards issued by any bank outside India displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos

Note: If you are a cardholder of bank other than State Bank Group, kindly contact your Bank for the charges recoverable for usage of State Bank ATMs.

Details of STATE BANK CASHPLUS SCHEME.

Features: 

Withdraw cash from over 8000 ATMs of our group FREE and about 16000 ATMs of other banks under bilateral sharing viz. Andhra Bank, Axis Bank, Bank of India, The Bank of Rajasthan Ltd. Canara Bank, Corporation Bank, Dena Bank, HDFC Bank, Indian Bank, IndusInd Bank, Punjab National Bank, UCO Bank and Union Bank of India apart from ATMs displaying Master Card/ Maestro/Cirrus logo for a nominal fee as under: -

Transaction ATMs of Sharing

network banks

Other banks under Maestro/ Master

Card/ Cirrus network

Cash Withdrawal

Rs. 25/- * Rs. 50/-*

Balance Inquiry

Rs. 12/-* Rs. 12/-*

*plus Service Tax & Education Cess

Make payments for purchases by using the debit card at more than 2,39,000 shops, restaurants, shopping malls, hotels, petrol pumps and many other outlets which display Maestro logo.

Recharge pre-paid mobile phones of Vodafone, IDEA and BPL without any charges at any State Bank ATM.

Recharge pre-paid mobile phones of AIRTEL of 11 Circles viz. Mumbai, Delhi, Gujarat, M.P., U.P. (East), U.P. (West), Karnataka, Kerala,

48

Andhra Pradesh, Tamilnadu, and Chennai, through ATM/ SMS anywhere in India.

Recharge mobile phones of AIRTEL, Vodafone, IDEA and BPL without any charges at all ATMs as well as by sending SMS (after registration at State Bank ATM).The text of SMS will be as under: -

Service Provider

SMS Text Send SMS to

Airtel RC (AMOUNT) PIN

535

BPL RC SBI (AMOUNT) PIN

140

Vodafone RC SBI (AMOUNT) PIN

147

IDEA RC SBI (AMOUNT) PIN

575

Pay MTNL, Mumbai bills through State bank. Payment of SBI Credit Card bills Payment of SBI Life insurance premium Pay fees of select colleges Donate to Temple Trusts: - (a) Vaishno Devi (b) Shirdi Saibaba (c)

Gurudwara Takht Saheb, Nanded (d) Tirupati and (e) Sri Jagannath Temple, Puri

Transaction Limits: 

Daily limit of Rs 25,000/- at the ATMDaily limit of Rs 50,000/- at Point of Sale (POS) terminal for debit transactions Combined daily limit of Rs 75,000/-

Fees:

There is no joining fee for State Bank ATM-cum-Debit (Cash Plus) card. Annual maintenance fee of Rs. 50/- p.a. will be recovered from the second year of issue.

49

3. STATE BANK INTERNATIONAL ATM-CUM-DEBIT CARD

Eligibility:All Saving Bank and Current Account holders having accounts with networked branches and are:

1) 18 years of age & above 2) Account type: Sole or Joint with “Either or Survivor” / “Anyone or

Survivor” 3) NRE account holders are also eligible but NRO account holders are not.

Benefits: Convenience to the customers traveling overseas Can be used as Domestic ATM-cum-Debit Card Available at a nominal joining fee of Rs. 200/- Daily limit of US $ 1000 or equivalent at the ATM and US $ 1000 or

equivalent at Point of Sale (POS) terminal for debit transaction Purchase Protection*up to Rs. 5000/- and Personal Accident cover*up to

Rs.2,00,000/-

4. INTERNET BANKING

50

www.onlinesbi.com is the Internet banking service of the State Bank of India. India's Premier Commercial Bank. Smart products for the smart customer. If you're a customer of our Bank and if your Branch is e-enabled then you're on to becoming an e-customer. All you need is Internet connectivity -Anywhere. And of course you will also need to sign-up for Registration. Just download the application form and submit it to your branch* after completing it. You will shortly receive your User-Id and Password. As soon as you receive them please log on to the www.onlinesbi.com and change your username and password. That's all. Simple, fast and convenient - anytime -anywhere - always open. You can now check your account balances, view your account, request for cheque book, drafts, Bankers cheques, stop cheque payment and issue standing instructions. You can also transfer funds to your other accounts at the Branch, request for third party transfers, invest and renew Term Deposits.

Facilities available to e-Banking customer

a) View account details/statement/transaction history

b) Funds Transfer to another account of self or third party within SBI Bank.

c) Utility Bills Payment – e.g. Mobile Bills, Telephone, E.B. LIC Premium

etc.

d) Tax Payment – ePayment of Central Excise, Sales Tax, Service Tax,

Income Tax etc

e) Request for issue of Cheque Books/Demand Drafts or Stop Payment

f) Send Mails to Relationship Manager/Branch Head

g) Know Maturity Value of Deposits and EMI of loans

Change Password and user profile.

5. DEMAT SERVICES

SBI offers Demat services that would ensure free transferability of securities with speed, accuracy and security.

51

SBI is Depository Participant both with - National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL) through more than 1000 branches - Features & Benefits As opposed to the earlier form of dealing in physical certificates with delays in transaction, holding and trading in Demat form has the following benefits:  

Account Maintenance & Safe custody: Facilitates Maintaining Security Balance in electronic form.

Dematerialization: Facilitates converting physical share certificate into electronic balances.

Rematerialization: Facilitates converting the electronic balances to physical (share certificate) form.

Account Transfers: Facilitates delivery/receipt of electronic balances consequent to market / off-market trades.

Pledge/Hypothecation: Facilitates blocking securities balance of borrowers in favour of lenders for obtaining Loans / advances against shares.

Initial Public offer: Facilitates faster and direct credit of security balances into DP account on allotment through public issue of companies.

Disbursement of corporate benefits: Facilitates faster and direct credit of security balance into DP account on account of non-monetary corporate benefits as bonus and rights issues.

Security Lending: Facilitates earning extra income on your dematerialized holdings by the way of securities lending.

In fact what makes scripless holding in SBI DP account most attractive is the total ease of operation.

Once you open your account, you can easily convert your physical holdings to paperless form by surrendering your share certificate together with a Demat request form. Thereafter, on selling / purchasing securities, you only need to give an appropriate instruction to effect settlement.

52

6. PUBLIC PROVIDENT FUND - 1968

Scheme introduced by Central Government in 1968. The Scheme enables the members of the public to make contributions to the Fund and obtain Income Tax rebate under the relevant provisions of the Income Tax.

Eligibility:

Individuals Individuals on behalf of a minor

Minimum / Maximum Investment (w.e.f. 15-11-2002): Minimum Rs.500/- per annum in multiples of Rs.5/-Maximum Rs.70, 000/- per annum Duration:

15 years can be extended for one or more blocks of 5 years Account can be discontinued but repayment of subscriptions along

with interest only after 15 years.

Rate of Interest:8% per annum credited in account on 31st March every year calculated on the minimum balance between 5th day and end of the month.

Loans

Loan upto 25% of balance at the end of first financial year from third to sixth year. Second loan can be taken on full payment of first loan.

Withdrawals

Only one withdrawal allowed during any one year from sixth year. Withdrawal limited to 50% of the balance at the credit at the end of 4th year preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower.

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The account extended beyond 15 years; partial withdrawal allowed up to 60% of the balance to the credit at the commencement of the extended period.

Tax Benefits

Benefit available u/s 88 of the I.T. Act. Interest totally exempt from Income Tax. Amount standing to the credit is fully exempted from Wealth Tax.

DATA ANALYSIS AND INTERPRETATION

54

ANALYSIS OF THE DATA COLLECTED THROUGH THE QUESTIONNAIRE

I have analyzed the data collected through the questionnaire and have classified the data into tables.

TABLE-I

The given below BAR graph shows the response of 100 customer.

“SERVICES EXPECTED FROM SBI”

QUICK RESPONSE 38GOOD CUSTOMER RELATION 37EXTRA FACILITY FOR EXISTING CUSTOMER 25

55

0

5

10

15

20

25

30

35

40

Extra facility for ex-isting customers

good customer re-lations

quick response

INTERPRETATIONOut of 100 customers, 38 of them said that they expect QUICK RESPONSE from the SBI bank, 37 said they expect GOOD CUSTOMER RELATION and 25 customers said that they expect EXTRA FACILITY FOR EXISTING CUSTOMER.

TABLE-II

The given below Bar chart shows the “SATISFACTION LEVEL OF CUSTOMER AFTER AVAILING LOAN”

SATISFACTION AFTER AVAILING LOAN

SATISFIED 42NORMAL 34DISSATISFIED 24

56

0

5

10

15

20

25

30

35

40

45

Dissatisfied

Normal

Satisfied

INTERPRETATIONOut of 100 customers 42 were found SATISFIED after taking loan from SBI , 34 Customer were NORMALY satisfied from SBI and 24 were DISSATISFIED because of interest charged, and behavior of the employee.

TABLE-III

The given below Bar chart shows the “CUSTOMER WANTS TO TAKE ANOTHER LOAN FROM SBI”

CUSTOMER WANTS TO TAKE ANOTHER LOAN FROM SBI

57

YES 68%NO 32%

0

10

20

30

40

50

60

70

No

Yes

Interpretation:Out of 100 customers, 68 would like to take another loan from SBI but 32 would not like to take another loan from SBI

TABLE-IV

The given Bar graph shows “THE INFLUENCING FACTOR FOR TAKING LOAN FROM SBI”

INFLUENCING FACTOR FOR LOAN FROM SBI

58

ADVERTISEMENT 26FRIENDS 20EASY AVAILABILITY OF LOAN 22TRUST 32

0

5

10

15

20

25

30

35

Trust

Easy availability of loan

Friends

Advertisement

Interpretation:Out of 100 customers, 32 said trust, 26 said advertisement,22 said easy availability and rest 20 said friends and relatives about the influence factor to taking loan from SBI.

TABLE-V

The given Pie chart shows the processing procedure while availing loan:

PROCEDURE WHILE AVAILING LOAN

Excellent 30Good 42

59

Average 28

Excellent

Good

Average

Interpretation:Out of 100 customers 42 people said good, 30 people said excellent and rest 28 people said average about the processing procedure while availing the loan.

TABLE-VI

The given Pie chart shows the co-operation of the bank employees in processing and helping in documentation.

CO-OPERATION OF BANK EMPLOYEES

Excellent 21

60

Good 55Average 24

Excellent

Good

Average

Interpretation:Out of 100 customers 55 people said good, 21 said excellent and 24 people said average about co-operation of employees in processing and documentation.

TABLE-VII

The given Pie chart shows the interest rate charged upon the loan available:

INTEREST RATES CHARGED UPON LOANS

Excellent 15Good 36

61

Average 49

Excellent

Good

Average

Interpretation:Out of 100 people’s 49 said averages, 36 said good and 15 said excellent about the interest rate charged upon the loan available.

CONCLUSION

SBI has emerged as an admired and trusted financial institution. It has been

serving the nation for yrs. SBI has stretched out to all segments of the economy-

be it agriculture, Indus- -try, trade & commerce, services or infrastructure. SBI

has also changed to be adept with the newest technology, boasting of

specialized computerized branches in both India and overseas.

62

Global banking has changed rapidly and SBI has worked hard to adapt to these

changes. The bank looks forward to the future with excitement and a

commitment to bring greater benefits to its customers.

SBI, with years of dedicated service to the Nation through active financial

participation in all segments of the economy - Agriculture, Industry, Trade &

Commerce, Service Sector, Infrastructure Sector etc., is keeping pace with the

changing environment. With a countrywide network of more than 2000 service

units which includes specialised and computerised branches in India and

overseas, SBI has marched into the 21st Century matched with dynamism and

growth!

The loan schemes of the bank suit customer requirement. Apart from home

loan, car loan & Education loan, the Bank has also introduced various other

schemes. The bank also provides services like ATM’s, Internet Banking,

Mobile Banking etc.

As per the general view, Rate of Interest is the most important criteria for

selection of a bank for a products and services provided by the organization.

However factors like flexibility and other services are also a driver to the

customers.

To conclude it can be said that SBI is a strong brand and is serving the society

at its best, with rich experience, best services. Competent employees and strong

business ethics. The organization is earning a fair amount of profit since its

establishment and able to establish a good reputation.

63

SUGGESTIONS The following suggestions and recommendations have been made on the basis

of the whole analysis, which was designed to get the response of the existing,

previous, as well as potential customers.

More awareness has to be created regarding the products offered by SBI

Bank. The customers are not aware of all the products offered to them

64

and the facilities provided. So it is suggested that pamphlets should be

sent to customers to make them aware about the latest policies and

schemes.

Facilities like Income Tax certificate should be sent to the customers by

post. This facility is only available to outstation customers only

The documentation process for taking a loan should be short and simple.

Regular updates to the existing customer regarding changes in interest

rates.

Proper guidance should be given regarding latest policies of SBI BANK

New loan schemes should be introduced to fulfill the needs of the weaker

sections of the society.

To develop Express DD counters at various branches from where

Demand Drafts can be purchased without any waiting time.

To open & develop NO HOLIDAY branches to extend the business

hours for public transactions during 365 days in a year.

QUESTIONNAIRE

Dear Sir/ Madam,

As part of my MBA curriculum, I, Nikita Dhillon, have prepared a questionnaire for which I need your personal views regarding banking products & services. The data being collected are solely for academic purpose. I request you to kindly extend your co-operation.

SBI BANK (SHIMLA)

65

1.Name: ……………….

2.Profession:………………….

3.Age group :( plz tick) (a)18-30 yrs. ( ) (b)31-40 yrs. ( ) (c)41-50 yrs. ( ) (d)51-60 yrs. ( )

4.Do you have an account in SBI, Shimla? (a) YES ( ) (b) NO ( )

5.Do you get proper attention and SBI employees listen to you patiently? (a) YES ( ) (b) NO ( )

6. Do you think SBI products & services suit to your needs? (a) YES ( ) (b) NO ( )

7. Are you satisfied with the interest rates on your deposits? (a) YES ( ) (b) NO ( )

8. Do you think SBI charges a fair interest on various loan schemes? (a) YES ( ) (b) NO ( )

9. Would you like to take another loan from SBI in future? (a) YES ( ) (b) NO ( )

10. Do you want SBI to introduce any new products and services? (a) YES ( ) (b) NO ( ) If yes then what?............11. Is the documentation process very long and cumbersome?

(a) YES ( ) (b) NO ( )

12. Anything which you do not like in SBI and would like SBI to improve? (a) YES ( ) (b) NO ( )If YES, then please mention …………………………………………………….

13.Where would you rank SBI Products & services?ExcellentVery goodGood

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FairPoor

14. Rank the following Banks?Bank number %ageSBI

PNBUCOOthers

15. Has the recent hike in interest rates effected your decision to take new products or repay the existing loan?

(a) YES ( ) (b) NO ( )

16. Are you satisfied with the Banking activities of the SBI Bank? (a) Strongly satisfied ( ) (b) quite satisfied ( ) (c) Satisfied ( ) (d) quite dissatisfied ( ) (e) Strongly dissatisfied ( )

BIBLIOGRAPHY

BOOKS: Khan, MY. Indian Financial system. Tata McGrawhill

Publication. Joshi, Rosy. Indian Banking. Kalyani Publishers

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WEBSITES:

“Retail banking.” Available at: en.wikipedia.org/wiki/Retail_banking

“Introduction.” Available at: http://www.statebankofindia.com/

“Retail banking in SBI.” Available at: https://www.onlinesbi.com/retail/login.htm

“Products and Services of SBI.” Available at: https://www.onlinesbi.com/productandservices.html -

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