CHAPTER-1 INTRODUCTION

1.1

HISTORY

The origin of theState Bank of Indiagoes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework. The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

1.2

BUSINESS

The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs.one Lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent.

Loans against goods like opium, indigo, salt woolens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favour of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden. Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.

1.3

FIVE YEAR PLAN

In 1951, when the First Five Year Plan was launched, the development of rural India was given the highest priority. The commercial banks of the country including the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and statesponsored bank by taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates). The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking sub-serving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development.
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1.4

COMPETITORS

Competitors and other players in the field:-

1.4.1

Top Performing Public Sector Banks

Andhra Bank Allahabad Bank Punjab National Bank Dena Bank 1.4.2 Top Performing Private Sector Banks

HDFC Bank ICICI Bank AXIS Bank Kotak Mahindra Bank Centurion Bank of Punjab 1.4.3 Top Performing Foreign Banks

Citibank Standard Chartered HSBC Bank ABN AMRO Bank American Express

1.5

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

1.6

WEAKNESS/THREATS The risks that could ensue to SBI in time to come are as under:

SBI is currently operating at a lowest CAR. Insufficient capital may restrict the growth prospects of the bank going forward. Stiff competition, especially in the retail segment, could impact retail growth of SBI and hence slowdown in earnings growth. Contribution of retail credit to total bank credit stood at 26%. Significant thrust on growing retail book poses higher credit risk to the bank. Delay in technology upgradation could result in loss of market shares. Management indicated a likely pension shortfall on account of AS-15 to be close to Rs50bn. Slow down in domestic economy would pose a concern over credit off-take thereby impacting earnings growth.

1.7

DIFFERENT PRODUCTS OF SBI

DEPOSIT

LOANS

CARDS

DIFFERENT CREDIT CARDS

Savings Account

Home Loans

Consumer Cards

SBI International cards

Life Plus Senior Citizens Savings Account Fixed Deposits Security Deposits Recurring Deposits

Loan Against Property

Credit Card

SBI Gold cards

Personal Loans Car Loan

Travel Card

SBI Gold Master cards

Debit Cards

Your City Your Cards

Loans against Securities

Commercial Cards

Tax-Saver Fixed Deposit Salary Account

Two Wheeler Pre-

Corporate Cards Prepaid Card

Partnership Cards

approved Loans Advantage Woman Savings Account Rural Savings Account People's Savings Account Freedom Savings Account Farmer Finance Business Installment Loans Flexi Cash Merchant Services Distribution Cards Business Card SBI Advantage Cards Retail Asset Purchase Card SBI Employee Cards

Table-1.1

CHAPTER-2 AWARDS AND RECOGNITION

Fig.-2.1

Fig.-2.2

Fig.-2.3

CHAPTER-3 INTRODUCTION TO ADVANCE PRODUCT

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

Home Loan Educational Loan Car Loan Personal Loan Property Loan Loan Against Shares\Debenture Now a day a large no. of people are taking loan from different banks. It helps people to fulfill their need and it really easy to repayment the loan amount with a longer repayment period.

3.1 3.1.1

SBI HOME LOANS Purpose

Purchase/ Construction of House/ Flat Purchase of a plot of land for construction of House Extension/ repair/ renovation/ alteration of an existing House/ Flat Purchase of Furnishings and Consumer Durables as a part of the project cost. Takeover of an existing loan from other Banks/ Housing Finance Companies. 3.1.2 Eligibility Minimum age 18 years as on the date of sanction. Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the loan should be fully repaid. Availability of sufficient, regular and continuous source of income for servicing the loan repayment.

3.1.3

Loan Amount

40 to 60 times of NMI, depending on repayment capacity as % of NMI as under Net Annual Income Upto Rs.2 lacs EMI/NMI Ratio 40%

Above Rs.2 lac to Rs. 5 lacs 50% Above Rs. 5 lacs Table-3.1 3.1.4 To enhance loan eligibility you have option to add: 55%

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

3.1.5

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

Interest Rates w.e.f 27/2/2008

3.1.6

Floating interest rates

(linked to State Bank Advance Rate - SBAR) (SBAR: 12.25% p.a.) Loan Tenor > Upto Rs.30 Lacs Upto 5 years 2.25% below SBAR, 10.00% p.a. Above 5 years and upto 15 years 2.00% below SBAR, 10.25% p.a. 1.75% below SBAR, 10.50% p.a. Table-3.2 Above 15 years and upto 25 years 1.75% below SBAR, 10.50% p.a. 1.50% below SBAR, 10.75% p.a.

Above Rs.30 2.00% below Lacs SBAR, 10.25% p.a.

3.1.7

Fixed interest rates Rate of Interest 12.75% Table-3.3

Tenure (p.a.)*Upto 10 years

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

3.2 3.2.1

CAR LOAN Purpose

You can take finance for: A new car, jeep or Multi Utility Vehicles (MUVs) A used car / jeep (not more than 5 years old). (Any make or model). Take over of existing loan from other Bank/Financial institution (Conditions apply). 3.2.2

Eligibility

To avail an SBI Car Loan, you should be Individual between the age of 21-65 years of age. A Permanent employee of State / Central Government, Public Sector Undertaking, Private company or a reputed establishment or

A Professionals or self-employed individual who is an income tax assessee or A Person engaged in agriculture and allied activities.

Net Annual Income Rs.100000/- and above.

3.3 3.3.1

SALIENT FEATURES Loan Amount

There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times the net annual income can be sanctioned. If married, your spouse's income could 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. Loan amount for used car is subject to a maximum limit of Rs.15 lacs. 3.3.2 Type of Loan

1. Term Loan 2. Overdraft - a) For New vehicles only

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b) Minimum loan amount: Rs.3 lacs.

3.3.3

Documents Required

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

3.3.4

Margin

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

3.3.5

Eligibility

To avail an SBI Car Loan, you should be: Individual between the age of 21-65 years of age. A Permanent employee of State / Central Government, Public Sector Undertaking, Private company or a reputed establishment or

A Professionals or self-employed individual who is an income tax assesse or A Person engaged in agriculture and allied activities.

Net Annual Income Rs.100,000/- and above.

3.4

EDUCATION LOAN

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

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3.4.1

Eligible Courses

All courses having employment prospects are eligible. Graduation courses/ Post graduation courses/ Professional courses Other courses approved by UGC/Government/AICTE etc.

3.4.2

Expenses considered for loan Fees payable to college/school/hostel Examination/Library/Laboratory fees Purchase of Books/Equipment/Instruments/Uniforms Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course)

Travel Expenses/Passage money for studies abroad Purchase of computers considered necessary for completion of course Cost of a Two-wheeler uptoRs. 50,000/-

3.4.3

Amount of Loan For studies in India, maximum Rs. 10 lacs. Studies abroad, maximum Rs. 20 lacs.

3.4.4

InterestRates

(with effect from 1st June 2008) For loans up to Rs.4 lacs - 11.75 % p.a. Floating For loans above Rs.4 lacs and upto Rs.7.50 lacs - 13.25 % Floating For loans above Rs.7.50 lacs - 12.25% p.a. Floating.

3.4.5

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.

3.4.6

Repayment Tenure

Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.

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Place of Study

Loan Amount

Repayment in Period Years

Studies in India Studies Abroad

Rs.10.0 lacs Rs.20.0 lacs

5-7 5-7

Table-3.4 3.4.7 Security Amount For loans uptoRs. 10.00 lacs for Studies in India and uptoRs. 20.00 lacs for studies abroad

UptoRs. 4 lacs

No Security

Above Rs. 4 lacs to Rs. 7.50 lacs Collateral security in the form of suitable third party Guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who 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.

Table-3.5

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. 3.4.8

Margin For loans up to Rs.4.0 lacs : No Margin For loans above Rs.4.0 lacs:

Studies in India: 5%
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Studies Abroad: 15%

3.4.9

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).

3.5 3.5.1

SBI SARAL PERSONAL LOAN Purpose

The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or foreign travel, medical treatment of self or a family member, meeting any financial liability, such as marriage of son/daughter, defraying educational expenses of wards, meeting margins for purchase of assets etc.)

3.5.2

Eligibility

You are eligible if you are a Salaried individual of good quality corporate, self employed engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing.

3.5.3

Salient Features

3.5.3.1 Loan Amount Your personal loan limit would be determined by your income and repayment capacity. Minimum: Rs.24000/- in metro and urban centers Rs.10, 000/- in rural/semi-urban centers Maximum: 12 times Net Monthly Income for salaried individuals and pensioners subject to a ceiling of Rs.10 lacs in all centers

3.5.3.2 Documents Required Important documents to be furnished while opening a Personal Loan Account:

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For existing bank customers Passport size photograph From salaried individuals Latest salary slip and Form 16 Margin We do not insist on any margin amount. Interest Rates 3.25% above SBAR floating i.e. 15.50% p.a. Repayment The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to, without attracting any prepayment penalty.

Security NIL

3.5.4

Processing Fee

Processing charges are 1-2% of the loan amount. This is amongst the lowest fees in the industry. Processing fees have to be paid upfront. There are no hidden costs or other administrative charges.

3.6 PROPERTY LOAN: 3.6.1 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.

3.6.2

Eligibility

You are eligible if you are: 1. An individual who is; i> An Employee or ii> A Professional, self-employed or an income tax assesse or iii> Engaged in agricultural and allied activities.

15

2. Your Net Monthly Income (salaried) is in excess of Rs.12000/- or Net Annual Income (others) is in excess of Rs.150000/-. The income of the spouse may be added if he/she is a co-borrower or a guarantor. 3. Maximum age limit: 60 years.

3.6.3

Salient Features

3.6.3.1 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

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

3.6.3.2 Margin We will finance up to 75% of the market value of your property.

3.6.2.3 Interest Term Loan 0.75% above SBAR. i.e.13.00% p.a. Floating.

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

3.6.2.5 Security As per banks extant instructions.

3.7 3.7.1

LOAN AGAINST SHARES \ DEBENTURES: Eligibility

This facility is available to our existing individual customers enjoying a strong relationship with SBI. This loan could be availed either singly or as a joint account with spouse in 'Either
16

or Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan. The facility is available at 50 select centers.

3.7.2

Salient Features

3.7.2.1 Purpose For meeting contingencies and needs of personal nature. Loan will be permitted for subscribing to rights or new issue of shares / debentures against the security of existing shares / debentures. Loan will not be sanctioned for (i) speculative purposes (ii) inter-corporate investments or (iii) acquiring controlling interest in company / companies. 3.7.2.2 Loan Amount You can avail of loans up to Rs 20.00 lacs against your shares/debentures. 3.7.2.3 Documents Required You will be required to submit a declaration indicating:

Details of loans availed from other banks/ branches for acquiring shares/ debentures. Details of loans availed from other banks/ branches against security of shares/ debentures

3.7.2.4 Margin You will need to provide a margin amount of 50% of the prevailing market prices of the shares/ non-convertible debentures being offered as security. (The market prices refer to the prices in the Stock Exchanges as reported in the Economic Times.)

3.7.2.5 Interest At SBAR Floating i.e. 12.25% p.a.

3.7.2.6 Repayment Schedule To be liquidated in maximum period of 30 months through a suitable reducing DP programe. In case of a default or if the outstanding is over Rs.20.00 lacs, the shares/debentures will be transferred in the name of the Bank.

3.7.2.7 Security: Pledge of the demand shares/debentures against which overdraft is granted.

3.8 STATEMENT OF PROBLEM

17

SBI Main Branch, Bhubaneswar want to know about the customer perception about the advance product provide by them to the people. To find out what kind of service provide by the competitors in advance product. To find out the need of the customer and hence formulate the strategy to level the economy in the society. How the products are helping the customer. To know the utility of the product.

3.9

RESEARCH OBJECTIVES

Summer Internship Project gives a practical exposure and helps in acquiring the on road skills. First and foremost objective is to find out the reasons for using of Advance Product from SBI. To find out the services that other bank given to their customer. To generate the leads through the survey. To sort out the prospective leads from the data I have collected through the survey. To build the relationship with the customers and to follow up them, make sure that they are satisfied with the product. To maintain good relationship with the corporate employees. To get more references from the customers and generate new leads by following a chain process. To place SBI Advance Product ahead of the competitors. To find out the customer awareness on booming Advance Product market and to find out the using patterns of the people To make the customer aware of the benefits of the product and convince him to go for SBI Advance Product.

3.10

SIGNIFICANCE AND SCOPE

The geographical scope of the study is restricted to Bhubaneswar only with sample size of 2000 people. All the analysis and suggestions are based on the analysis of the both primary and secondary data. Therefore the scope of the study revolves around the following aspects:
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Consumer perception towards Advance Product Consumer awareness about Advance Product scheme and its benefit. Aware the Bank about the customer problems, especially in case of automobile sector.

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CHAPTER-4 RESEARCH METHODOLOGY

4.1

INTRODUCTION

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

Sample of 2000 people was taken into study, and their data was collected Sampling Technique:

To study the Project, a Simple Random Sampling technique is used. Data Collection:

Collection of data is done by Secondary Data & throughQuestionnaire i.e. Primary data was collected through Questionnaire. Data Analysis: After data collection, Im able to analyze customers views, ideas and opinions related to Advance Product and about SBI Advance Product and from this, SBI will come to know the customer requirements. Data Interpretation:

Interpretation of data is done by using statistical tools like Pie diagrams, Bar graphs, and also using quantitative techniques (by using these techniques) accurate information is obtained.

4.2 CLASSIFICATON AND TABULATION OF DATA The data thus collected were classified according to the categories, counting sheets & the summary tables were prepared. The resultant tables were one dimensional, two dimensional.

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4.3 STATICAL TOOLS USED FOR ANALYSIS Out of the total respondents, the respondents who responded logically were taken into account while going into statistical details & analysis of data. The tools that have been used for analyzing data & inference drawing are mainly statistical tools like percentage, ranking, averages, etc. As per questionnaire and market surveys I have find out different responses from different people. According to their responses I analyze the findings and draw certain remarks.

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CHAPTER-5 ANALYSIS OF DATA

5.1

GRAPHICAL REPRESENTATION OF DATA

Q1. On which bank you depend for your regular transaction?

( )

No. of People

SBI ICICI HDFC OTHER TOTAL NO. OF PEOPLE Table-5.1

60 % (1200) 33 % (660) 5% (100) 2% (40) 2000

RESPONSES OF PEOPLE IN %
5% 2%

33% 60%

SBI ICICI
HDFC OTHER

Fig.-5.1 It has been observed that approximately 60% correspondents are using the service of SBI for their daily transaction, around 33% of people are using ICICI Bank for their transaction and

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only 5% & 2% of people are using HDFC & other Bank service respectively in Bhubaneswar. It also shows that SBI have the highest market position in Bhubaneswar as per my sample.

Q2. Are you aware of products & services provided by SBI? YES 85% (1700)

NO Total No. of People Table-5.2

15% (300) 2000

NO 15%

YES 85%

Fig.-5.2 From the above data it is clear that most of the customers (around 85%) of Bhubaneswar have the idea about the product & services of SBI, the rest 15% have the idea about the product they are using. In this 15% most of the people are from typical rural area (Farmers).

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Q3. If yes are you aware of the advance products (Loan segments) of SBI? YES NO TOTAL NO. OF PEOPLE Table-5.3 95%(1900) 5% (100) 2000

% OF PEOPLE
5%

YES NO 95%

Fig.-5.3 It is clear that most of the people have the idea about the advance product of SBI. Almost all the 95% people who have the idea about the advance product are the user of SBI product & service.

Q4. Which bank you prefer for taking loans? 85% (1800) SBI ICICI HDFC 7% (140) 2% (40)

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OTHER TOTAL NO. OF PEOPLE

1% (20) 2000

Sales
2% 1% 12% SBI ICICI HDFC 85% OTHER

Fig.-5.4 According to my sample size 85% of people prefer SBI for loan product, but some people prefer ICICI, HDFC or OTHER Bank for loan because they are working with that bank & it is easier for them to get loan from their bank & it easier for them to pay the interest because it is less as compare to other bank because they are the employee of that bank.

Q5. If you prefer SBI for taking loan than what influence you to take Loan from SBI? Most of the people said that they prefer SBI for taking loan because of the transparency and the lowest interest rate for any kind of loan product. And it is easy to get loan from SBI as compare to other bank because less paper work is require and as it is the largest govt. bank in India and having partnership with RBI (Reserve Bank of India) and other association, it is easier for SBI to give loan to people with a longer repayment period.

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Q.6 Which loan product of SBI you have used?

HOME LOAN EDUCATIONAL LOAN CAR LOAN PERSONAL LOAN OTHER TOTAL NO. OF PEOPLE Table-5.4

47% (846) 20% (360) 15% (270) 10% (180) 8% (144) 1800

Sales
10% 15%

8% 47%
HOME LOAN EDUCATIONAL LOAN CAR LOAN PERSONAL LOAN OTHER

20%

Fig.-5.5 From the sample size 85% of people are using the SBI loan product. From the 1800 people 47% of people took home loan from SBI. 20% of people took education loan for their children, 15% of people took car loan from SBI. Some of the customer took 2 type of loan from SBI like both car & educational loan and home & car loan. 10% of people took personal loan.

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Q7. What do you feel about the services providing by SBI in advance product? Bad Satisfactory 0% (0) 2% (40)

Good

55% (1100)

Excellent

43% (860)

TOTAL NO. OF PEOPLE

2000

CUSTOMER PERCEPTION TOWARDS THE SERVICE PROVIDE BY SBI IN ADVANCE PRODUCT 0% 2% 43% 55%

BAD SATISFACTORY

GOOD
EXCELLENT

Fig.-5.6 From this it is clear that the service provide by SBI in its advance product is good in between the customer. All of them satisfy with the product provide by SBI. 55% of people said that the service provide by SBI is good & 43% said it is excellent & just 2% of people said that it is satisfactory.

27

Q8. Which features you like most in Loan segments of SBI? LESS PAPER WORK ATTRACTIVE INTEREST RATE TRANSPARENCY SIMPLE AND FAST PROCESSING LONGER REPAYMENT PERIOD 3% (60) 35% (700) 20% (400) 2% (40) 40% (800)

TOTAL NO. OF PEOPLE

2000

Table-5.5

FEATURES LIKE BY CUSTOMER

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% LESS PAPER WORK ATTRACTIVE INTEREST RATE TRANSPARENCY SIMPLE & FAST PROCESSING LONGER REPAYMENT PERIOD

Fig.-5.7 Most of the people like the attractive interest rate & longer repayment period. Its easier for people to repay the whole loan amount with its interest with low interest rate and with longer repayment period.
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CHAPTER-6 PROJECT WORK

6.1

INTRODUCTION TO SBI ONLINE

About Online SBI State Bank of India is India's largest bank with a network of over 13000 branches and 5 associate banks located even in the remotest parts of India. State Bank of India (SBI) offers a wide range of banking products and services to corporate and retail customers. OnlineSBI is the Internet banking portal for State Bank of India. The portal provides anywhere, anytime, online access to accounts for State Bank's Retail and Corporate customers. The application is developed using the latest cutting edge technology and tools. The infrastructure supports unified, secure access to banking services for accounts in over 13,000 branches across India. The Retail banking application is an integration of several functional areas, and enables customers to:

Issue Demand Drafts online. Transfer funds to own and third party accounts. Credit beneficiary accounts using RTGS/NEFT feature. Generate account statements. Setup Standing Instructions. Configure profile settings. Use eTax for online tax payment. Use ePay for automatic bill payments. Interface with merchants for railway and airline reservations. Avail DEMAT and IPO services. Pay bill of Visa Credit Card issued by any Bank.

The OnlineSBI corporate banking application provides features to administer and manage corporate accounts online. The corporate module provides roles such as Regulator, Admin, Up loader, Transaction Maker, Authorizer, and Auditor. These roles have access to the following functions.

Manage users, define rights and transaction rules on corporate accounts Access accounts in several branches with a single sign-on mechanism
29

Upload files to make bulk transactions to third parties, supplier, vendor and tax collection authorities.

Use online transactional features such as fund transfer to own accounts, third party payments (both Inter and Intra bank), and draft issues

Make bill payments over the Internet. Authorize, modify, reschedule and cancel transactions, based on rights assigned to the user

Generate account statement Enquire on transaction details or current balance

In addition to the above the Internet banking application also provides the following value added services:

Tax payments to central and state governments through site to site integration. Supply Chain Finance( e-VFS- Electronic Vendor Finance Scheme) Direct Debit Facility E Collection Facilities for:

Core Banking Transactions Inter Bank Transactions for incoming RTGS/NEFT Transactions Internet Banking Transactions for SBI & Associate Banks Direct Debit facility where suppliers can directly debit their customers account through Internet Bank.

6.2 SAVING BANK ONLINE ACCOUNT APPLICATION PROCESS IN BRIEF You may fill up an application online for opening a Savings Bank account. The process in brief would be as follows:

Fill up and submit the required details online. Print the Account Opening Form (AOF) on A4 size white papers. Attach the required documents, such as photographs and proof of identity and address, as mentioned in the AOF.

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A TCRN (Temporary Customer Reference Number) will be generated, which please note down. TCRN will also be sent on the registered mobile number of the applicant(s).

6.3

BENEFITS Convenience: The AOF can be filled at your convenience and fields that can be validated are checked for errors.

Quick: Time taken for opening of the account at the branch will get reduced as the data will already be available in the system.

Safety: The data will be submitted on a VeriSign secured site and the information will be encrypted before transmission.

6.4

INFORMATION THAT YOU NEED TO PROVIDE For opening an account, you need to provide the following information:

KYC (Know Your Customer) information: The acceptable KYC documents are available through drop down menu in the AOF.

Information about the Savings Bank account you wish to open and the facilities you would want in the account.

Form 60, if you do not have Permanent Account Number (PAN) of Income Tax. Form DA-1 (optional), if you wish to make a nomination (recommended). DOCUMENTS THAT YOU NEED TO PROVIDE

6.5

For each person who wishes to open the account, you will need to provide:

2 Recent passport-sizes colored photographs. KYC documents as mentioned in the AOF. STEP- BY- STEP ACCOUNT OPENING PROCESS

6.6

Step 1: Fill the Customer Information Section

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This section will have to be filled for each person wishing to open the account. You must fill Part A first. Once you fill Part A and save the form, a Temporary Customer Reference Number (TCRN) will be generated which may please be noted. You will need it later to edit the form, if you desire, and to link the customer in the Account Opening Form.

Subsequent parts in this step can be filled only after you have successfully filled Part A.

Step 2: Fill the Account Information Section

Part A: Type of Account and Services Required. Part B: Nomination Form (optional but recommended).

Note:

This section will have to be filled for each account that you wish to open. You must fill Part A first. Once you fill Part A and save the form, a Temporary Account Reference Number (TARN) will be generated which may please be noted. You will need it later to edit or print the form.

Subsequent parts in this step can be filled only after you have successfully filled Part A.

After successful filling up of data in the account opening form, an SMS notification will be sent to 1st applicant's mobile number along with the TARN. Step 3: Read the Savings Bank Rules Please read these rules carefully before signing the account opening form. By applying to the Bank for opening the account, you would be confirming that you have read the rules and that you agree to abide by these. A print of the same can also be taken by you after generation of TARN. 6.7 FAQS

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Q1: Who can submit information online for opening a Savings Bank account? Ans: Any resident Indian desirous of opening a Savings Bank Account with any branch of State Bank of India. Q2: Can I open an account jointly? Ans: Yes. You may open an account jointly, with up to three applicants. 6.8 6.8.1 SNAPSHOTS Online SBI Homepage

Fig.-6.1
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6.8.2

Login Page

Fig.6.2

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 6.8.3

Filling Customer Details. Print Out Section. Customer Information Form

Fig.-6.3 Enter Details of Customer as per required.

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6.8.4

After that you get TCRN No.

Fig.-6.4

After getting TCRN No. Note it down.

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6.8.5

Identification Detail

Fig.-6.5

Identity or address proof. Tick the PAN Card details or fill the form 60/61.

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6.8.6

After that we get the TARN No.

Fig.-6.6

Get the TCRN No. and note it down. Finally, save and proceed by saving the pdf. Submit the pdf to nearby SBI Branch.

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CHAPTER-7

7. Annexure
7.1 Questionnaire

Name - _____________________________________

Occupation-__________________________________

Contact Detail -_______________________________

Q. On which bank you depend for your regular transaction? a) b) c) d) SBI ICICI Bank HDFC Bank Other Bank, Specify (_____________)

Q. Are you aware of products & services provided by SBI? a) YES b) NO Q. Have you ever used to online banking? a) YES b) NO Q. Which bank you consider most reliable for online banking? a) b) c) d) SBI ICICI Bank HDFC Bank Other Bank, Specify (_____________)

Q. If you prefer SBI for online transaction then what influence you to prefer SBI? _____________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ __________________________________________________________________________.
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Q. Which type of online transaction of SBI you have used? a) b) c) d) e) Money transfer Paying bills Paying life insurance Online shopping Other online, Specify ( ______________ )

Q. What do you feel about the services providing by SBI in Online sector? a) Bad b) Satisfactory c) Good d) Excellent Q. Which features you like most in Oline segments of SBI? a) Easy to use b) 24 hours services c) Transparency d) fast processing e) Any other feature, specify ( _____________ )

Q. Any suggestion you want to give for the betterment of SBI Online services..? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ __________________________________________________________________________.

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CHAPTER-8

8. Bibliography
8.1Text Books

Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed. New Jersey: Prentice Hall

Wilson A. (2003), Marketing Research: An Integrated Approach

Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth Edition

8.2 Internet www.sbi.com www.sbi.co.in www.bnet.com

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