summer Training Project Report

ON
“FINANCIAL SERVICES OFFERD BY SBI
BANK ”

TO BE SUBMITTED TO DR. APJ ABDUL KALAM TECHNICAL

UNIVERSITY, LUCKNOW
IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Batch 2016-18
Submitted To : Submitted By :

Mrs. SAKSHI SHARMA MANSI AGARWAL

Faculty of Management M.B.A. III Sem
Roll No. -
1607470051

1
DEWAN INSTITUTE OF MANAGEMENT,MEERUT

2
 DECLARATION

I MANSI student of MBA III sem hereby declare that the project report titled

“FINANCIAL SERVICES OFFERD BY SBI BANK” is a genuine summer

training work undertaken Submitted to Mrs. SAKSHI , faculty of Management

Department, DIMS, Meerut me and this has not been submitted to DR. APJ

ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW any other

institute/university toward any other degree/diploma.

Mrs. Sakshi sharma

Faculty of MBA Dept.

DATE…….

MANSI AGARWAL

M.B.A. III Sem

Roll No. - 1607470051

SUPERVISOR :

3
4
5
 ACKNOWLEDGEMENT

“Future is for those people who have vision &more for those who have capability to see

their dreams come true.”

“The written words have an unfortunate tendency to degenerate genuine graduate into

stilled formality. However, this is the only way; I can record my feeling permanently.”

The entire journey from the very idea of this project to reality would not have been

possible without the guidance and support of many experienced people. I take this golden

opportunity to express my gratitude to the following people:

I, wish to place on record my deep gratitude to “Mrs Sakshi sharma. faculty of

Management Department, DIMS, Meerut and other faculty members for their

valuable suggestions and advices through the MBA course.

I also extend my thanks to the Management of the SBI BANK Bank for providing me

an opportunity to undertake my Summer Training under their supervision. Also I am

thankful to all employees who directly or indirectly contributed to my work.

At last but not at the least I would like to thank my parents also for encouraging me

throughout towards my studies.

MANSI AGARWAL

6
 PREFACE

Progress is a continuous process. It is relative and absolute. We cannot stop at a

certain destination and declare that target has been achieved and we need not to go
further. If the flow of a river stops and it gets stagnated then it is considered as dead. In
the same way if a life gets stagnated then it does not have any have any reason to keep its
sustenance? So in our life we should always try to learn everyday. So the main extract is
that life is the name of flow. It is the flow of knowledge, wisdom. A person can be
successful only if he remembers this lesson.

I was privileged enough to join “SBI BANK” Navyug Market as a summer

trainee. Here I have been guided with due care to succeed in the assignments that have
been given to me. I was a great experience on my party to work for Syndicate Bank.

The experience that I have gathered during this period has certainly provided me
with an orientation which, I believe, will help me to shoulder my any assignments
successfully in near future.

On the basis of my training programme I have tried my best efforts to arrange

works in a systematic and chronological way. However to cover tetainled information
about the organization in such a short period was not possible. Despite the inherent
shortcomings of the study, a genuine attempt was made on my part to see that the study
was carried out in the right perspective. If there are any shortcomings noted then it will
be may fault which is deeply regretted. I am very thankful to them who have helped me
in rectifying my shortcomings during my summer training.

7
 EXECUTIVE SUMMARY

It was a great privilege & learning experience for me to undergone summer training in an
esteemed and reputed organization named SYNDICATE BANK. All the study was
related to the Credit Policy and Banking Operations and the basic objective was to
understand the banking services.

The banking sector in India saw great emphasis being placed on technology and
innovation. Organizations are constantly changing. Syndicate bank always went for
adopting new technology and making innovation its working style. Syndicate bank was
first use to CBS system. Syndicate bank in its life of 80yrs has undergone many
innovations whether it is in the field of technology or it is customer satisfaction.
In this period of our training we learned all the operation done by the Bank i.e. from
opening of account to issue of passbook. Issue of cheque book to clearing of cheque, cash
collection, cash withdrawals. Issuing of different types of notices like TDS notice of
housing loan, opening of FDs to transferring of money drawing the maturity of it.
During our training we also come know about customer satisfaction which the Bank
gives to its customers. Syndicate Bank is equally aware to needs of its customers and help
them in giving meaning and contents.
All the study was related to the operation and credit policy of Syndicate Bank’s. On
which I have to work. Most of required material, files and documents were provided to
me by the bank itself. Some secondary Data I collected from Internet and other
magazines. Whenever it was necessary they provided the with all those materials and
each and everyone in the advances department provided me with all the necessary
information and date, which helped me to understand the management and the working of
Syndicate Bank’s, advances department.

8
 TABLE OF CONTENTS

(1) INTRODUCTION (7-10)

(2) COMPANY PROFILE (11-24)

(3) PRODUCT RANGE (25-49)

 SALARY ACCOUNT

 SAVING ACCOUNT

 CURRENT ACCOUNT

 FIXED ACCOUNT

 DEMAT ACCOUNT

SAFE DEPOSIT LOCKER’S

(4 ) MANAGEMENT (50-60)

(5) OBJECTIVE OF THE RESEARCH (61-62)

(6) RESEARCH METHODOLOGY (63-64)

(7) SOURCE OF INFORMATION (65-74)

(8) SERVICES STRATEGY OF THE SBI BANK BANK (75-78)

(9) SWOT ANALYSIS (79-80)

(10) DATA ANALYSIS (79-80)

(11) CONCLUSION (93)

(12) FINDINGS (94-97)

(13) SUGGESTIONS AND RECOMMENDATIONS (98-101)

(14) BIBLIOGRAPHY (102-103)

9
(15) QUESTIONNAIRE (104-108)

INTRODUCTION

10
 INTRODUCTION

OVERVIEW OF BANKING SYSTEM IN INDIA

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

important channel of collecting small saving from the household and leading it to the

corporate sector.

The Indian Banking system has the Reserve Bank of Indian (RBI) as the apex body for all

matters relating to the banking system. It is the "central bank " of India. It is the banker to

all other banks.

FUNCTION S OF RBI.

1. Currently issuing authority.

2. Banker to the Government.

3. Banker to other banks.

4. Framing of Monetary Policy.

5. Exchange control

6. Custodian to Foreign Exchange and Gold Reserves

7. Developmental activities

8. Research and Developing in the banking sector.

Following is the classification of banks:

 NON SCHEDULED BANKS:

These are banks which are not included in the second schedule of the banking

Regulation Act, 1965. It means they do not satisfy the conditions lay down by that

schedule. They are further classified as follows:

1. Central Co-operative Banks and Primary Credit Societies.

11
2. Commercial Banks.

 SCHEDULED BANKS

Scheduled Banks and banks which are included in the second schedule of the Banking

Regulation Act, 1965. According to this schedule a scheduled bank:

a. Must have paid - up capital and reserve of not less than Rs. 500,000;

b. Must also satisfy the RBI tat its affairs are not conducted in a manner detrimental

to the interest of its depositors.

Scheduled banks are sub-divided as;

1. State Co-operative Banks;

2. These are Co-operatives owned and managed by the state.

3. Commercial Banks;

4. These are business entities whose main business is accepting deposits and extending

loans. Their main objective is profit maximization and adding shareholder value.

These are further sub-divided as;

1. Indian Banks;

These banks are companies registered in India under the Companies Act. Their place of

origin is in India.

These are also sub-divided as;

1. State Bank of India and its Subsidiaries.

2. This group comprises of the state Bank of India (SBI) and kits seven subsidiaries viz.

State Bank of Patiala, State Bank Hyderabad, State Bank of Travancore, State Bank

of Bikaner and Jaipur, State Bank of Mysore, State Bank of Saurashtra, State Bank of

Indore.

12
3. Other Nationalized Banks;

4. This group consists of private sector banks that were Nationalized the Government of

India Nationalized 14 private banks in 1969 and another 6 in the year 1980

5. Regional Rural Banks;

6. These were established by the RBI in the year1975 of Banking Commission. It was

established to operate exclusively in rural areas to provides credit and other facilities

to small and marginal farmer, agricultural laborers, artisans and small entrepreneurs.

7. Old Private Sector Banks.

8. This group consists of banks that were established by the privy states, community

organisations or by a group of professionals for the cause of economic betterment in

their area of operations. Initially their operations were concentrated in a few regional

areas. However, their spread through the nation as they grew.

9. New private Sector banks;

These bank were started as profit oriented companies after the RBI opened the banking

sector to the private sector. These banks are mostly technology driven and better managed

than other banks.

 Foreign Banks

These are banks that were registered outside and had originated in a foreign country.

13
COMPANY PROFILE

14
 COMPANY PROFILE

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

when the Bank of Calcutta, later renamed the Bank of Bengal, was established on

2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two

being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of

Madras (incorporated on 1 July 1843). All three Presidency banks were

incorporated as joint stock companies and were the result of royal charters. These

three banks received the exclusive right to issue paper currency till 1861 when,

with the Paper Currency Act, the right was taken over by the Government of India.

The Presidency banks amalgamated on 27 January 1921, and the re-organised

banking entity took as its name Imperial Bank of India. The Imperial Bank of

India remained a joint stock company but without Government participation.

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

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

Imperial Bank of India. On 1 July 1955, the Imperial Bank of India became the

15
State Bank of India. In 2008, the government of India acquired the Reserve Bank

of India's stake in SBI so as to remove any conflict of interest because the RBI is

the country's banking regulatory authority.

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

which made eight state banks associates of SBI. A process of consolidation began

on 13 September 2008, when the State Bank of Saurashtra merged with SBI.

SBI has acquired local banks in rescues. The first was the Bank of Bihar (est.

1911), which SBI acquired in 1969, together with its 28 branches. The next year

SBI acquired National Bank of Lahore (est. 1942), which had 24 branches. Five

years later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been

established in 1916 in Gwalior State, under the patronage of Maharaja Madho Rao

Scindia. The bank had been the Dukan Pichadi, a small moneylender, owned by

the Maharaja. The new bank's first manager was Jall N. Broacha, a Parsi. In 1985,

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

acquirer as its affiliate, the State Bank of Travancore, already had an extensive

network in Kerala.

16
The State Bank of India and all its associate banks are identified by the same

blue keyhole logo. The State Bank of Indiawordmark usually has one standard

typeface, but also utilises other typefaces.

On October 7, 2013, Arundhati Bhattacharya became the first woman to be

appointed Chairperson of the bank.[6]

Operations

SBI provides a range of banking products through its network of branches in India

and overseas, including products aimed at non-resident Indians (NRIs). SBI has 14

regional hubs and 57 Zonal Offices that are located at important cities throughout

India.
Domestic presence

SBI has 14,816 branches in India, as on 31 March 2013, of which 9,851 (66%)

were in Rural and Semi-urban areas.[1] In the financial year 2012-13, its revenue

was INR 200,560 Crores (US$36.9 billion), out of which domestic operations

contributed to 95.35% of revenue. Similarly, domestic operations contributed to

88.37% of total profits for the same financial year.[1]

Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by

Government in August 2014, SBI held 11,300 camps and opened over 30 lakhs

17
accounts by September, which included 21.16 lakh accounts in rural areas and 8.8

lakh accounts in urban areas.

International presence

The Israeli branch of the State Bank of India located in Ramat Gan.

As of 28 June 2013, the bank had 180 overseas offices spread over 34 countries. It

has branches of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong

Kong,Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat,

Dubai, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in

the Bahamas, Bahrain, and Singapore, and representative offices

in Bhutan and Cape Town. It also has an ADB in Boston, USA.

The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has

seven branches, four in the Toronto area and three in the Vancouver area.

SBI operates several foreign subsidiaries or affiliates. In 1990, it established an

offshore bank: State Bank of India (Mauritius). SBI (Mauritius) has 15 branches in

major cities/towns of the country including Rodrigues.

18
State Bank of India Branch at Jaffna,Sri Lanka

SBI Sri Lanka now has three branches located in Colombo, Kandy and Jaffna. The

Jaffna branch was opened on 9 September 2013. SBI Sri Lanka, the oldest bank

inSri Lanka, celebrated its 150th year in Sri Lanka on 1 July 2014.

State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong

In 1982, the bank established a subsidiary, State Bank of India (California), which

now has ten branches – nine branches in the state of California and one in

Washington, D.C. The 10th branch was opened in Fremont, California on 28

March 2011. The other eight branches in California are located in Los Angeles,

Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield.

19
In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-

Nigerian Merchant Bank and received permission in 2002 to commence retail

banking. It now has five branches in Nigeria.

In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches throughout the

country. In Moscow, SBI owns 60% of Commercial Bank of India, with Canara

Bankowning the rest. In Indonesia, it owns 76% of PT Bank Indo Monex.

The State Bank of India already has a branch in Shanghai and plans to open one

inTianjin.[8]

In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it

acquired for US$8 million in October 2005.[9]

Associate banks[edit]

Main Branch of SBI in Mumbai.

SBI has five associate banks; all use the State Bank of India logo, which is a blue

circle, and all use the "State Bank of" name, followed by the regional headquarters'

name:

20
 State Bank of Bikaner & Jaipur

 State Bank of Hyderabad

 State Bank of Mysore

 State Bank of Patiala

 State Bank of Travancore

Earlier SBI had seven associate banks, all of which had belonged to princely

statesuntil the government nationalised them between October 1959 and May

1960. In tune with the first Five Year Plan, which prioritised the development of

rural India, the government integrated these banks into State Bank of India system

to expand its rural outreach. There has been a proposal to merge all the associate

banks into SBI to create a "mega bank" and streamline the group's operations.[10]

The first step towards unification occurred on 13 August 2008 when State Bank of

Saurashtra merged with SBI, reducing the number of associate state banks from

seven to six. Then on 19 June 2009 the SBI board approved the absorption of State

Bank of Indore. SBI holds 98.3% in State Bank of Indore. (Individuals who held

the shares prior to its takeover by the government hold the balance of 1.77%.) [11]

The acquisition of State Bank of Indore added 470 branches to SBI's existing

network of branches. Also, following the acquisition, SBI's total assets will inch

21
very close to the 10 trillion mark (10 billion long scale). The total assets of SBI

and the State Bank of Indore stood at 9,981,190 million as of March 2009. The

process of merging of State Bank of Indore was completed by April 2010, and the

SBI Indore branches started functioning as SBI branches on 26 August 2010.[12]

State Bank of India Mumbai LHO.

Non-banking subsidiaries[edit]

Apart from its five associate banks, SBI also has the following non-banking

subsidiaries:

 SBI Capital Markets Ltd

 SBI Funds Management Pvt Ltd

 SBI Factors & Commercial Services Pvt Ltd

 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

 SBI DFHI Ltd

 SBI Life Insurance Company Limited

 SBI General Insurance

22
In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with

26% of the remaining capital), to form a joint venture life insurance company

named SBI Life Insurance company Ltd. In 2004, SBI DFHI (Discount and

Finance House of India) was founded with its headquarters in Mumbai.

Other SBI service points

As of 31 March 2014: SBI has 43,515 ATMs and SBI group (including associate

banks) has 51,491 ATMs. SBI has become the first bank to install an ATM at Drass

in the Jammu & Kashmir Kargil region. This was the Bank's 27,032nd ATM on 27

July 2012.

Logo and slogan

 The logo of the State Bank of India is a blue circle with a small cut in the

bottom that depicts perfection and the small man the common man - being the

center of the bank's business. The logo came from National Institute of

Design(NID), Ahmedabad and it was inspired by Kankaria Lake, Ahmedabad.

 Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE

WAY", "A BANK OF THE COMMON MAN", "THE BANKER TO EVERY

INDIAN", "THE NATION BANKS ON US"

23
Listings and shareholding[edit]

As on 31 March 2014, Government of India held around 58.60% equity shares in

SBI. Life Insurance Corporation of India is the largest non-promoter shareholder in

the company with 14.99% shareholding.

Shareholders Shareholding[14]

Promoters: Government of India 58.60%

Banks & Insurance Companies 16.79%

FIIs/GDRs/OCBs/NRIs 12.04%

Mutual Funds & UTI 03.78%

Private Corporate Bodies 02.87%

Others 5.92%

Total 100.0%

24
The equity shares of SBI are listed on the Bombay Stock Exchange,[15] where it is a

constituent of the BSE SENSEX index,[16]and the National Stock Exchange of

India,[17] where it is a constituent of the S&P CNX Nifty.[18]

Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange.

[19]

Employees[edit]

SBI is one of the largest employers in the country having 222,033 employees as on

31 March 2014, out of which there were 45,132 female employees (20%) and

2,610 (1%) employees with disabilities. On the same date, SBI had 42,744

Schedule Caste (19%) and 17,243 Schedule Tribe (8%) employees. The

percentage of Officers, Assistants and Sub-staff was 36%, 46% and 18%

respectively on the same date Hiring drive: 1,776 Assistants and 1,394 Officers

joined the Bank in FY 2013-14, for expansion of the branch network and to

mitigate staff shortage, particularly at rural and semi-urban branches. Staff

productivity: As per its Annual Report for FY 2013-14, each employee contributed

net profit of INR 4.85 lakhs.

25
Recent awards and recognitions[edit]


SBI won the Best Bank award in the 'ASiAMONEY FX POLL OF POLLS

2014’ for best overall performance as domestic provider of Forex services over

the last 10 years.[20]


SBI was ranked as the top bank in India based on tier 1 capital by The

Banker magazine in a 2014 ranking.[21]


SBI was ranked 298th in the Fortune Global 500 rankings of the world's

biggest corporations for the year 2012.[2]


SBI won "Best Public Sector Bank" award in the D&B India's study on

'India's Top Banks 2013'.[22][23]


State Bank of India won three IDRBT Banking Technology Excellence

Awards 2013 for “Electronic Payment Systems”, “Best use of technology for

Financial Inclusion”, and “Customer Management & Business Intelligence” in

the large bank category.[24]


SBI won National Award for its performance in the implementation of

Prime Minister’s Employment Generation Programme (PMEGP) scheme for

the year 2012.[25]


Best Online Banking Award, Best Customer Initiative Award & Best Risk

Management Award (Runner Up) by IBA Banking Technology Awards 2010

26

SKOCH Award 2010 for Virtual corporation Category for its e-payment

solution


SBI was the only bank featured in the "top 10 brands of India" list in an

annual survey conducted by Brand Finance andThe Economic Times in 2010.

[26]


The Bank of the year 2009, India (won the second year in a row) by The

Banker Magazine


Best Bank – Large and Most Socially Responsible Bank by the Business

Bank Awards 2009


Best Bank 2009 by Business India


The Most Trusted Brand 2009 by The Economic Times.


SBI was named the 29th most reputed company in the world according

to Forbes 2009 rankings[27]


Most Preferred Bank & Most preferred Home loan provider by CNBC


Visionaries of Financial Inclusion By FINO


Technology Bank of the Year by IBA Banking Technology Awards

27
PRODUCT RANGE

28
 PRODUCT RANGE

 SALARY ACCOUNT

 SAVING ACCOUNT

 CURRENT ACCOUNT

 FIXED DEPOSIT

 DEMAT ACCOUNT

 SAFE DEPOSIT ACCOUNT

29
SALARY A/C

There are three type of product code in salary account .product code 105 is basically

employees of the regular organization, they are not provided with instant kit and those

how are provided with instant kit there product code is 154, for the premium customer the

product code is 114 and those how are provided with instant kit they have the product

code of116, product code 120 is only defense person organization/department. If product

code 120 account holders want to a debit card then they have to pay Rs.100 per annum.

Branch code for Lucknow Hazratganj Branch is 078

With SBI BANK Bank’s Salary Account, costumer receives an array of rewards with

their monthly pay. All at no extra cost to customer.

Their employees get privileged services that help them achieve even more

 Direct Salary Credits – Their employee need not go to the band ,deposit their cheques

and wait for it to be cleared .Their salary is automatically credited to their accounts

 Interbranch/Intercity Banking at 142 branches and over 360 ATMs

 No minimum Balance to be maintained in the account to avail of these benefits

Interbranch/Intercity Banking: - Costumer can use any of SBI BANK BANK

branches/ ATMs across 111 cities in India, no matter where their

Account is held e.g. costumer may open their account in Pune and can operate this

account the next time costumer travel to Bangalore or for that matter from any other city.

30
Also no need to open a new account when costumer gets transferred to another city where

SBI BANK BANK has a branch.

ATM 24-hour Banking: - Over 675 ATMs across 111 cities enable costumer to withdraw

up to Rs.15, 000 a day.

Free International Debit Card: - It’s like an ATM Card that costumer can shop with and

make payments at 25,000 outlets in India and 10 million worldwide. Costumer can also

withdraw money from over 5.6 lakhs Maestro/visa/Plus/cirrus ATMs, in 140 countries.

SBI BANK BANK also waives the annual fee for one additional card per account for the

first year.

Free Demand Drafts: Customers can avail of free demand drafts up to Rs.25, 000/- per

instrument payable at any city where SBI BANK BANK have branches.

Free Phone Banking: - This 24- hour’s facility enables customer to conduct a range of

banking transactions with just a call on to the no. 0522-4003333

Free net Banking: - Customer can now bank at the click of a mouse, backed by the

highest level 128-bit security.

31
Free Mobile Banking: - Customer can even conduct a range of banking transactions

over a mobile phone, using SMS facility or a WAP activated phone.

Free Personalized Cheque Book: - Their employees get personalized Cheque book with

the name of the account holder printed on the cheque leaves.

Free Payable At Par Cheque Book:- Employees of the premium organization will get

cheque books which are localized all over INDIA.

Sweep-in Account: - This facility is a fixed deposit linked to savings account. So even if

funds are short in the savings account that entire customers have to do is just issue a

Cheque. The money is automatically

Swept in from the fixed deposit into the savings account. The balance amount continues

to earn high interest rate.

Super Saver Account: - This account gives customer an overdraft facility of unto 75%

of the Fixed Deposit in times of emergency. Customer can access their funds either

through an ATM or by issuing a Cheque, while the Fixed Deposit continues to earn high

interest rate.

32
Free Collection of Outstation Cheques: This account entitles customer to free

collection of outstation cheques drawn on all cities where SBI BANK BANK have

branches.

(2) How else do customer benefit from SBI BANK Bank’s Salary Account?

With SBI BANK BANK Salary Account, customer enjoys a number of privileged value

added services such as:

Direct Salary Credits: - Customer salary is automatically credited to their account. All

customer have to do is inform their payroll department of their SBI BANK Bank Salary

Account number.

Demat Account: Customer can enjoy paperless trading, by opening a Demat account.

Joint Account facility: - Customer can open a joint account by opening a Demat account

Personalized Cheque Book: Customer get a personalized cheque boom with the name

of all the account holder (S) printed on the cheque leaves.

At Par Cheque Book: Customer get at par cheque books which are treated local all over

India.

33
SAVING ACCOUNT
The e-Age Saving Account from SBI BANK Bank brings customer a comprehensive

range of products and services. Each one is designed to minimize their effort,

making it much simpler for you to do their banking. SBI BANK BANK now have

211 branches in 110 cities and over 650 ATMs across the country. Add to this an

international network of over 6.5 lakhs ATMs which customer can access with their

international Debit Card. That’s world class banking for customer.

Free 24 hour ATM:- Customer can withdraw up to Rs. 10,000 per day from any of

SBI BANK BANK extensive network of over 650 ATMs across 110 cities all over the

country. Customer can also deposit cash/cheques, get an account balance, request for a

cheque book and transfer funds, all at the push of a few buttons. This amazing facility is

available 24 hours a day 365 days a year.

Rs. 15,000 per day with their Debit Card.

Free Net Banking: - SBI BANK BANK convenient Net banking facility will open up

a whole amount of services for customer at just the click of a mouse. Customer can:

 Check their upto the minute account balance etc.

 Open a Fixed Deposit.

 Get a Demand Draft

 Make a TDS inquiry

 Request a stop payment on a cheque

 Request for a new cheque boom

 Transfer funds within their own accounts
 Carry out third party transfer of funds

34
International Debit Card: The SBI BANK Bank international Debit Card lets

customer shop and also withdraws money from SBI BANK BANK ATM network. With

SBI BANK BANK’S international Debit Card, customer can shop at 18,000

establishments in India and over 100 Lakhs establishments in 140 countries. Customer

can also withdraw cash from over 1600 VISA/Plus ATMs in India and 605 Lakhs ATMs

in 140 countries. The amount customer spend on their card will be automatically debited

from their Savings Account. So when customer go shopping customer don’t have to carry

cash!

Interbranch/intercity Banking:- Customer can access their account from any of

the 211 branches in 110 cities and over 650 ATMs across the country. So customer can

withdraw cash from another branch, through a self-cheque or an ATM. Customer could

also transfer funds between two accounts, or deposit a local cheque in one branch and get

is credited to their account in another city.

NOTE: - On receiving Costumer instruction to pay their bill, the bill amount will be

deducted form customer account.

Free Phone Banking: - SBI BANK Bank’s 24 hour Phone Banking service lets

customer conduct a wide range of banking transactions from the comfort or their home of

office.

35
Phone No. 0522-4003333

Customer can:-

 Get their account details

 Ask for a cheque book or a statement

 Open a Fixed Deposit

 Transfer money within their own accounts

 Order a Demand Draft

 Stop cheque payment, etc.

Now customer can do all their banking activities through the phone.

All this for an average quarterly balance of just Rs. 5000.

36
CURRENT ACCOUNT

At SBI BANK Bank, SBI BANK BANK understand that running a business requires

time and money, also that their business needs are constantly evolving. That’s where SBI

BANK BANK comes in. SBI BANK BANK provides customer with a choice of Current

Account options to exclusively suit their business whatever the size scope.

Take Costumer pick!

Customer can choose the Current Account that works best for their specific business

needs.

1. Regular Current Account

The regular Current Account requires an average quarterly balance of Rs.10, 000 only.

Besides the free ATM card and easy accessibility, their first 50 cheque leaves are offered

free.

2. Premium Current Account

Their account can be operated from any of the branches for depositing of withdrawing

money. A Premium Current Account requires an average balance of only Rs. 25.000 per

quarter. Moreover, for premium Current Account holders cheque leaves are free.

37
Free Services offered to Regular and premium current Account holders:

 One ATM card per account (only for individuals/Sole Proprietorships).

 Replacement in case of damaged cards.

 Monthly statement.

 Online, real-time Net Banking.

 24 hours Phone Banking access (please check for availability in their city,).

3. SBI BANK Bank Trade

It is a Current Account ideal for small funds transfer across various cities in the country.

Trade Account is suitable for small businessmen and traders.

Features offered to SBI BANK Bank Trade Account holders:-

 At par payable cheques.

 Free inter-city Funds Transfers up to Rs. 25 lacs.

 Free Pay Orders

 Free Demand Drafts Payable on SBI BANK Bank locations upto 30 per quarter.

(Check with branch for value limits).

ATM card for individuals/Sole Proprietorships. Free online, real time Net Banking.

24-hour Phone Banking access (please check for availability in their city).

A Trade Current Account requires an average quarterly balance of only Rs. 40,000.

38
4. SBI BANK Bank Plus

Single Account, Multi-city Banking

If their business regularly requires customer to receive and send funds to various cities in

the country, SBI BANK Bank Plus provides customer with the means to facilitate such

transactions efficiently.

With just one account, customer have access to more that 111 cities in the country. In

other words, the power of a single account and multi-city banking. This results in huge

savings on inter-city movement of funds and other service charges.

Furthermore, SBI BANK BANK strategic alliance with Chase Manhattan Bank gives

customer the advantage of competitive rats for trade finance

And faster inward/outward remittances. The average balance requirement for the SBI

BANK Bank Plus account is Rs. 100,000 per quarter.

39
FIXED DEPOSIT
Super save account

(A temporary overdraft against their fixed Deposit)

Would not it be great to earn a high interest on their Fixed Deposit and at the same time

enjoy the liquidity associated with a Saving account/ Get their self the SBI BANK Bank

Super Save Account and that’s exactly what customer will have.

How do I benefit from the Super Save Account?

Maximum Liquidity

Their Super Saver Account allows customer to issue cheques and use and ATM card for

withdrawals, just like Savings Account. Customer can access their account from any of

SBI BANK BANK 211 branches or over 650 ATMs spread across India. Even in an

emergency, customer need not break their fixed Deposit to withdraw money. So customer

get their money whenever customer need it.

40
Easy operation

Customer can open a supersaver Account with nominal sum of just Rs. 25,000 and enjoy

a temporary withdrawal limit of upto 75% of their deposit Even after customer withdraw

a part of their limit; their entire deposit continues to earn a high rate of interest, i.e. their

deposit in not broken. Customer are required to pay an overdraft interest that is 2% more

than the interest earned by their Fixed Deposit for the amount of overdraft, and only for

the period for which customer use the money. Besides, customer can take an overdraft by

simply using a cheque of through an ATM. Isn’t that great?

 For overdraft limits greater than Rs. 2 Lakhs, overdraft interest will be charged at

the Bank’s Prime Lending Rate (PLR).

High yield

Customer can choose any account plan between 6 months and 5 years for their Super

Saver Account. SBI BANK BANK personal Bankers will give customer expert advice on

the best possible account plan yielding the most attractive interest, depending on their

needs.

41
Better Returns that a Savings Account

Even if customer withdraw unto 70% of their Supersaver Account on day one and do not

put it back for a year, customer still earn more than customer would through a Saving

Account. Incredible isn’t it?

For example, let us assume that the interest on a 3-year deposit is 10% p.a. and customers

have a Fixed Deposit of Rs. 50,000 with the bank. If customer withdraw Rs.10, 000 from

their Super Saver Account, their earnings in a year will be:

Customers earn Rs. 5000@ 10% p.a.on Rs.50, 000.

Customers are charged Rs. 1,200@ 12% for the year.

Therefore, the net interest customer earn is Rs. 3, 8000

Thus, customer earns Rs. 3,800 on a balance of Rs. 40,000 in their Super Saver Account.

On the other hand, customer would earn only Rs. 1,600 (@ 4% p.a.) with the same

balance in an ordinary Savings Account. A comparison of interest earned in a year from a

Rs. 50,000 Super Saver Account (3year plan) and a Savings Account, at different levels

of withdrawal, is shown below:

42
Amount Interest earned in 1Year
Super Saver Savings account @ Net Gain (Rs.)
withdrawn on day
Account @ 10% 4% p.a. (Rs.)
one (Rs)
P.A. (Rs.)
0 5000 2000 3000
10000 3800 1600 2200
20000 2600 1200 1400
25000 2000 1000 1000
30000 1400 800 600
35000 800 600 200

In fact, the higher the balance in their Super Saver Account, the higher their returns.

Moreover, the shorter the period for which customer use the money, the higher their

earnings.

Free ATM Card

With every Super saver Account customer get a free ATM Card. This allows customer to

enjoy 24 hour banking 365 days a year, including Sundays sand bank holidays. Their

convenience is all the matters.

 Available in select cities only

Personalized Cheque Book

Customer also gets a cheque book with every Super Saver Account, with their name

printed on it.

43
Overdraft on Current Account against their fixed Deposits

Customer can also get an overdraft on their Current Account against their own fixed

Deposits with the bank. Please contact their Personal Banker for details on

documentation required.

SWEEP IN ACCOUNT

(A Flexible Fixed Deposit cum Savings Account)

44
Imagine having an account that changes to suit their needs. When customer want their

money to earn high interest it worked like a Fixed Deposit, when customer want to

withdrew money in a hurry, it works like a savings Account. Customers win both ways

So what is a Sweep-in Account?

It is a Fixed Deposit that comes automatically linked to a savings Account. So whenever

customers’ are short of funds in their Saving account and their money is “blocked” in a

fixed Deposit, customer just have to issue a cheque (or use the ATM.) their money

automatically gets transferred, i.e. swept-in from their fixed Deposit into their Saving

Account. It’s as easy as it sounds. To open a sweep in Account, all customer need is to

open a Fixed Deposit as per the norms of the bank and a Savings Account with no

minimum balance requirement.

Customer need to maintain a minimum fixed Deposit of Rs, 50.000 at all times to avoid

service charges. In case of non maintenance of Rs.50.000 in fixed deposits, customer

savings Account will be subject to service charges as applicable. The saving account

needs to be opened with an initial amount of Rs.5000.

How does it work?

Since the Sweep in Account holds their money in a Fixed Deposit in units of Re.1 every

time money is swept from their fixed deposit to their Savings account, interest loss in

minimized. Further, the amount swept in earns interest for the tenure that it has

45
completed without any penalty. The rest of their deposit continues to earn the original

interest rate till maturity.

There’s more! Customer can, if customer like always open an add on deposit for just Rs.

5,000. Further, customer link as many deposits as customer like to their Savings account.

And the Sweep in automatically chooses the oldest deposit first before sweeping money

into their Savings Account.

Enjoy the benefits of a truly flexible fixed Deposit. Just open a Sweep in Account. The

Savings accounts comes with it.

Call us and SBI BANK BANK representative will come over to their home of office and

open an account for customer. Well take care of details and formalities including their

photograph.

DEMAT ACCOUNT

46
Now customer can avoid mutilation, duplication and pilferage of share certificates. Open

a Demat Account with SBI BANK Bank and protect their securities from damage. loss

and theft. And remember, SBI BANK Bank is the largest depository participant amongst

all banks.

Why do I need Demat Account?

With SEBI making trading mandatory in the Demat form and the advent of Rolling

Settlements it is imperative that all investors have a Demat Account with a depository

participant. When customer place a buy order, a seller can deliver the securities in Demat

form, which can only be credited to a Demat Account.

What benefits do I get from an SBI BANK Bank Demat Account

 No Account Opening Charges.

 Nominal Annual Maintenance Charges.

 Competitive fees for transactions.

 Demat Account Status on the internet.

 Option to open a Demat Account with NSDL, CDSL or both.

 Personalized instruction Book.

47
What other benefits do I get?

 Paperless trading which will help prevent mutilation. Loss and misplacement of

certificates and eliminate the problems of bad delivery.

 Safety of their securities with SBI BANK Bank.

 Problems of bad delivery, theft or mutilation eliminated.

 Zero stamp duty.

 Faster settlements of buy and sell orders, direct credit of allotment from public/

rights/bonus issues.

How do I open an SBI BANK Bank Demat Account?

 Fill up the application form and the Agreement and get it singed by all the applicant.

 Attach one photograph of each applicant.

 Provide proof of identity/Residence (copy of ration card/ driving license/voters

ID/passport or PAN

 card). Please bring the original to the bank along with a photocopy.

 Annual charges of Demat account Rs.499 per annum

Once their Demat account is active, customer will receive periodic account statements

from SBI BANK Bank. SBI BANK bank’s Demat Account is

also accessible on the internet, allowing customer to check balances, transaction status,

Demat status etc. online.

48
SAFE DEPOSIT LOCKERS

Safeguard their valuables with SBI BANK Bank lockers.

Their jewellery, share certificates and important documents are far too important for

customer to risk keeping them at home. As an SBI BANK Bank customer, SBI BANK

BANK offer customer a safe and secure place to guard their valuables from theft, fire or

any unforeseen circumstances.

Various locker Sizes: SBI BANK BANK lockers are available in various convenient

sizes. Customer can choose the locker of their choice depending on customer

requirement.

Complete privacy: The spacious design and special mobile screens of SBI BANK

BANK locker rooms provide complete Privacy. Besides, SBI BANK BANK allow usage

of only one locker per row, at a time.

Water – Proof Fire Proof and Secure : the lockers are housed in a special area of

the branch which is secured by strong room doors and tamper-proof locks. Besides, the

walls of SBI BANK BANK locker rooms are specially treated to protect them from

water seepage and fire.

49
Convenient hours of operations: Their can operate the lockers during the branch

timings, and even on Sundays at select braches.

How to get a locker at SBI BANK Bank?

When customer open an account with us customer can ask about SBI BANK BANK

locker facilities.

Rating

SBI BANK Bank's programme for Certificates of Deposits has been rated by the Indian

rating agency Credit Analysis & Research Ltd. (CARE). The CDs are rated PR 1+ is

the highest rating for short term instruments indicating superior capacity for

repayment.

Business Focus

SBI BANK Bank's mission is to be a World Class Indian Bank. The Bank's aim is to

build a sound customer franchise across distinct businesses so as to be the preferred

provider of banking services in the niche segments that the bank operates in and to

achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank

aims to ensure the highest level of ethical standards, professional integrity and regulatory

compliance. SBI BANK Bank's business philosophy is based on four core values:

Operational Excellence, Customer Focus, Product Leadership and

50
People. The Bank signed a strategic business collaboration agreement with Chase

Manhattan Bank in February 1999.

Capital Structure

The authorized capital of SBI BANK Bank is Rs.450 crores. The paid-up capital is

Rs.281.2 crores. The SBI BANK Group holds 24.5% of the bank's equity while about

13.3% of the equity is held by the depository in respect of the bank's issue of American

Depository Shares (ADS/ADR Issue). The Indian Private Equity Fund, Mauritius (IPEF)

and Indocean Financial Holdings Ltd., Mauritius (IFHL) (both funds advised by J P

Morgan Partners, formerly Chase Capital Partners) together hold about 11.6% of the

bank's equity. Roughly 18% of the equity is held by FIIs, NRIs/OCBs while the balance

is widely held by about 300,000 shareholders. The shares are listed on the The Stock

Exchange, Mumbai and the National Stock Exchange. The bank's American Depository

Shares are listed on the New York Stock Exchange under the symbol "HDB".

Times Bank Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank Limited (another

new private sector bank promoted by Bennett, Coleman & Co. /Times Group) was

merged with SBI BANK Bank Ltd., effective February 26, 2000. As per the scheme of

51
amalgamation approved by the shareholders of both banks and the Reserve Bank of India,

shareholders of Times Bank received 1 share of SBI BANK Bank for every 5.75 shares of

Times Bank. The amalgamation added significant value to SBI BANK Bank in terms of

increased branch network, expanded geographic reach, enhanced customer base, skilled

manpower and the opportunity to cross-sell and leverage alternative delivery channels.

Distribution Network

SBI BANK Bank is headquartered in Mumbai. The Bank at present has an enviable

network of over branches spread over cities all across the country. All branches are linked

on an online real-time basis. Customers in 39 locations are also serviced through Phone

Banking. The Bank's expansion plans take into account the need to have a presence in all

major industrial and commercial centers where its corporate customers are located as well

as the need to build a strong retail customer base. Being a clearing/settlement bank to

various leading stock exchanges, the

Bank has branches in the centers where the NSE/BSE has a strong and active member

base.

The Bank also has a network of almost over networked ATMs across these cities.

Moreover, SBI BANK Bank's ATM network can be accessed by all domestic and

international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express

Credit/Charge cardholders. It is the only bank in India which provides access to all the 3

major International Card Networks on its ATM network.

52
Management

Mr. Jagdish Kapoor took over as the bank's Chairman in July 2001. Prior to this,

Mr.Capoor was a Deputy Governor of the Reserve Bank of India.

The Managing Director, Mr. Adyta Puri, has been a professional banker for over 20 years

and before joining SBI BANK Bank in 1994 was heading Citibank's operations in

Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of

experience in public policy & administration and commercial banking. Senior executives

representing SBI BANK and J P Morgan Partners (formerly Chase Capital Partners) are

also on the Board.

Senior banking professionals with substantial experience in India and abroad head

various businesses and functions and report to the Managing Director. Given the

professional expertise of the management team and the overall focus on recruiting and

retaining the best talent in the industry, the bank believes that its people are a significant

competitive strength.

53
 BOARD OF DIRECTOR

Chairman : Jagdesh Capoor

Managing director : Aditya puri

Director : Venkat Rao Gadwal

Director : Anil Ahuja

Additional Director : Vineet Jain

54
Additional Director : Arvind Pande

Additional Director : Renu S Kamad

Additional Director : K.M.Mistry

Vice President & CS : Sanjay Domgre

55
Technology

SBI BANK Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have connectivity which

enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch

access is also provided to retail customers through the branch network and Automated

Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology

available internationally, to build the infrastructure for a world class bank. In terms of

software the Corporate Banking business is supported by Flexcube, while the Retail

Banking business by Finware, both from I-flex Solutions Ltd. (formerly Citicorp

Information Technology India Ltd.). The systems are open, scaleable and web-enabled.

The Bank has prioritized its engagement in technology and the internet as one of its key

goals and has already made significant progress in web-enabling its core businesses. In

each of its businesses, the Bank has succeeded in leveraging its market position, expertise

and technology to create a competitive advantage and build market share.

56
AWARDS AND ACCOLADES

SBI BANK Bank was selected as the "Best Bank - India 1999" and "Best Domestic Bank

- India 2000", "Best Bank - India 2001" by Euro money, and "Best Domestic Commercial

Bank - India 1999" and "Best Domestic Commercial Bank - India 2000", "Best Domestic

Commercial Bank - India 2001" by Finance Asia. In the October 2000 issue, Forbes

Global selected SBI BANK Bank amongst the top 20 in the Forbes listing of the world's

best small companies. Closer home, SBI BANK Bank was selected for The Economic

Times Award - Corporate Excellence for Emerging Company of the Year 2000-01 and as

Business India's Best Bank for the year 2000.

In the year 2000, leading financial magazine Forbes Global named us in its list of "The

300 Best Small Companies" in the world and as one of the "20 for 2001" best small

companies in the world.

There have been some other proud moments as well:

London-based Euro money magazine gave us the award for "Best Bank India" in 1999,

"Best Domestic Bank" in India in 2000, and "Best Bank in India" in 2001 and 2002.

Hong Kong-based Finance Asia magazine rated us "Best Domestic Commercial Bank in

India" in 1999, 2000 and 2001 respectively and "Best Local Bank in India " in 2002.

57
Asia money magazine has named us "Best Commercial Bank in India 2002".

The Economic Times has conferred on us The Economic Times Awards for Corporate

Excellence as the Emerging Company of the Year 2000-01.

Leading Indian business magazine Business India named us "India's Best Bank” in 2000.

Another leading Indian business magazine Business Today in a survey rated us "Best

Private Sector Bank” in India in 1999.

For our use of information technology we have been recognized as a "Computerworld

Honors Laureate” and awarded the 21st Century Achievement Award in 2002 for

Finance, Insurance & Real Estate category by Computerworld, Inc., USA. Our

technology initiative has been included as a case study in their online global archives.

NASSCOM and economictimes.com have named us the ‘Best IT User in Banking’ at the

IT Users Awards 2003.

We are aware that all these awards are mere milestones in the continuing, never-ending

journey of providing excellent service to our customers. We are confident, however, that

with your feedback and support, we will be able to maintain and improve our services.

58
Product Range

Savings, Fixed Deposits, Current and Demat Accounts Savings Account, Investment

& Insurance : Apart from the usual facilities, you get a free ATM Card, Interbranch

banking, Net Banking, Bill Pay, Phone Banking, Debit Card and Mobile Banking,

among others.

SBI BANK Bank Preferred: A preferential Savings Account where you are assigned a

dedicated Relationship Manager, who is your one-point contact. You also get privileges

like fee waivers, enhanced ATM withdrawal limit, priority locker allotment, free Demat

Account and lower interest rates on loans, to name a few.

Sweep-In Account: A fixed deposit linked to your Savings Account. So, even if your

Savings Account runs a bit short, you can issue a cheque (or use your ATM Card). The

money is automatically swept in from your fixed deposit into your Savings Account.

Super Saver Account: Gives you an overdraft facility up to 75% of your Fixed Deposit.

In an emergency, you can access your funds while your Fixed Deposit continues to earn

high interest.

SBI BANK Bank Plus: Apart from Regular and Premium Current accounts we also have

SBI BANK Bank Plus, a Current Account and then some more.

You can transfer up to Rs. 50 lakhs per month at no extra charge, between the four

metros. You can also avail of cheque clearing between the four metros, get cash

59
delivery/pickup up to Rs. 25,000/-, home delivery of Demand Drafts, at-par cheques,

outstation cheque clearance facility, etc.

Demat Account: Conduct hassle-free transactions on your shares. You can also access

your Demat Account on the Internet.

Innovative services for your convenience...

Phone Banking: 24-hour automated banking services with 39 Phone Banking numbers

available. You can just call 4003333 for any type of query regarding the accounts.

ATM 24-hour banking: Apart from routine transactions, you can also pay your utility

bills and transfer funds, at any of our ATMs across the country all year round.

Intercity/Interbranch Banking: Access your account from any of our branches in cities.

Net Banking: Access your bank account from anywhere in the world, at anytime, at your

own convenience. You can also view your Demat Account through Net Banking.

International Debit Card: An ATM card you can shop with all over the country and in

over 140 countries with. You can spend in any currency, and pay in Rupees.

60
Mobile Banking: Access your account on your mobile phone screen at no airtime cost.

Use SMS technology to conduct your banking transactions from your cell phone.

Bill Pay: Pay your telephone, electricity and mobile phone bills through our ATMs,

Internet, phone or mobile phone. No more standing in long queues or writing cheques.

Although this is not fully activated in Lucknow.

Loans for every need

Now, our loans** come to you in easy-to-pay monthly installments, and are available

with easy documentation and quick delivery.

Personal Loans: Take a loan of up to Rs. 3 lakh for a wedding, education, purchase of a

computer or an exciting holiday.

New Car Loans and Used Car Loans: Finance up to 90% of the cost of a car, new or

used! And the loans come to you with easy documentation and speedy processing at

attractive interest rates.

Loans against Shares: Get an overdraft up to Rs. 10 lakhs at an attractive interest rate

against physical shares, up to 50% of the market value of your shares. In case of Demat

Shares, you can get a Loans against Shares of up to 65% of the market value of your

shares, till Rs. 20 lakhs.

Two Wheeler & Consumer Loans: To help you buy the best durables for your home.

61
Investment & Insurance: Investment is provided through mutual fund.

Mutual funds are funds that pool the money of several investors to invest in equity or

debt markets. Mutual Funds could be Equity funds, Debt funds or balanced funds.

Insurance in SBI BANK Bank has plan for every segment of life, for child there is Young

star Plan, for pension there is Unit Link Pension plan, SBI BANK Standard Life’s Unit

Link Endowment Plan. For both mutual fund & Insurance Young Star Plan.

62
OBJECTIVE OF

THE RESEARCH

63
 OBJECTIVE OF THE RESEARCH

 To know the various financial products provided by a Bank in the current scenario

with reference to SBI BANK Ltd. GHAZIABAD

 To know the various facilities provided by the SBI BANK Ltd GHAZIABAD with an

aim to retain their customers.

 To Check Segment Wise Penetration and Use of Direct Banking Channels.

NEED OF THE STUDY

As the banking sector is the fastest growing sectors in current Business World. So it is

necessary to have In-depth Knowledge of BANK Products provided by them. And to

check Segment Wise Penetration and use of Direct Banking Channels in GHAZIABAD.

64
RESEARCH

METHODOLOG

65
 RESEARCH METHODOLOGY

• A questionnaire was prepared to gauge the awareness of SBI BANK Bank in

Retail banking sector.

• Survey has been done in and out of the bank covering a wide cross-section of the

society.

• The question was presented in one to one interview with each of the respondents.

• Responses of the question had been thoroughly analyzed.

• Conclusions had been arrived at using the response of the questionnaire.

66
SOURCE OF INFORMATION

 Collection of data has been done through secondary sources like. Brochures,

Company profile

 Primary sources are Personal interviews, face to face contact to 140 persons

(approximate).

67
SEGMENT WISE PENETRATION AND USE OF DIRECT

BANKING CHANNELS

SBI BANK Bank in Lucknow has corporate tie up with various companies. Another part

of my project was to increase the Product Holding Ratio of these corporate. Product

Holding Ratio is the number of products an employee in the organization holds.

Employees of the organization are divided into various Bands like 1, 2,3,4,5. I have to

convert Band 1 customers to Band 2 or Band 2 customers to Band 3 and so on. Band 5

customers are the customers how hold maximum products and they are customers who

are most profitable customers to the bank. The most effective manner to increase the

PHR is to see that whether the customers are using Direct Banking Channel .DBC are

the products like Net banking, Phone Banking, Mobile Banking .If the customers are

using these products then they must not be coming to the bank there by the bank does

not have to spend time and man power in attending that customers. If the customers are

having direct banking channels and are using it then they are of some profit the bank.

Other than DBC there is another product which is the effective way of increasing the

PHR that is Insta Alert, which shows balance of your account on your mobile phone,

although DBC are free of cost services but for Insta Alert the customer have to pay

25 Rs quarterly if they are regular customers and for

the Premium customers these are free of cost .Seeing that the customers are using all the

DBC and Insta Alert than it is to be seen that whether customers are not requiring any

68
other products of the Bank like Credit Cards :-For the premium corporate credit cards

are free, for rest there are some charges that have to be paid by the customers.

Mutual Funds:-Are another way to increase PHR .Having investment in mutual funds is

same for all the customers in the corporate.

Insurance: - This Product is provided to the customers how want some type of insurance

which is provided by SBI BANK Standard Life Insurance. There various product in the

insurance.

Auto Loan: - To provide auto loan to the customers how are interested in taking loan for

there vehicles whether it is old or new vehicle.

Personal Loan: - To provide personal loan to the customers how want loan for some

personal purpose. The rate of interest for premium customers would be different from

the regular customers.

Fixed Deposit :- For the customers how want to have there money save and earn interest

on it , for them there is fixed deposit scheme either they can have sweep-in FD or super

saver account which is explained earlier.

Housing loan: - Customer how wants Loan for the construction of there house or to buy

a new house, loan is to be provided to them; again the rate of interest are different for

different organization.

Having corporate tie up with various organization and employees having salary account

with SBI BANK Bank , Bank does not want its customers to switch to other banks so in

order maintain it customer base bank provides one stop shop, which fulfill there

69
requirements. And that is why bank emphasizes on corporate selling. There are

approximately 120 corporate in Lucknow where SBI BANK Bank has its tie up with

Companies meaning those many salary account with bank , out of this 20 corporate are

the premium corporate where the maximum selling can be done. In the table given below

will indicate the corporate that had being contacted and products being sold.

PENETRATION OF DIRECT BANKING CHANNEL IN INDIA:

NET BANKING: -

Almost all leading bank in India are hoping that just as ATMs saw a period of in action

before they were accepted by Indian masses, Internet banking too would be adopted once.

Customers are comfortable with the technology for instance in 1998 India had just 500

ATMs. To day it has close to 7500 ATMs.

While Internet banking in potential and powerful delivery channels. It has failed to make

significant impact due to variety or reasons. RBI in its report trend and progress of

banking in India 2001 - 2002, says Internet

Banking has failed to take of due to a combination of psychological, Technological and

socio-economic factors. Further the report states that additional hurdles relating to legal

and infrastructural problems have also affected growth.

There are three clear reasons why Internet taken of the India.

1- Slowness in adoption of the Internet by the 40 + AGE group.

70
2- Lacks of a strong trust environment prevent rapid more of corporates in to

adopting Internet.

3- Lack of a critical man of early adopters of security and trust technology among

bankers operating in India to drive the transition from bricks and mortar to e -

banking"

Although the Govt as made considerable progress in initiating a trust environment, with

some public certification authorities (PCA). Already licensed to operate the adoption of

trust technology is till a douting factor for many users. What needs to be level adopted in

a simple way of integrating trust into online banking se services.

71
ATM:-

In this competitive edge of time banking based on customer satisfaction. After

liberalization, the banking sectors empharises on retail banking during 1996 private

sector banks comes into action to compete with RBI and SBI. War for fast service give

birth to E-age banking.

Now in India E-age banking are adopted by all the banks.

Most excepted channel of direct banking is ATM 90% of cash with drawal done by

ATMs. Approximately 7500 ATMs are present in India today. The growth rate of 60 - 7

0% per years an averagely.

ICICI take capture a good number of customer by adopting the e - banking. It has

approximately 1200 ATMs today. A branch stand of ICICI with 8 ATMs.

SBI BANK, UTI, ABNAMRO are also competitive to ICICI - ATM has given life to

private sectors banks.

72
MOBILE BANKING: -

It is used by customer in Hyderabad, Ghaziabad, Banglooro, Kolkota, Bombay and so on

high tech city. It is cost effective channel but not used by branch in the entire city where

ever bank branch stand.

PHONE BANKING: -

Very cost effective channel of e-banking by which are can banking from any where, any

time. In India ICICI banks customers are using phone banking in large scale. They do

balance enquiry of their account.

73
 EVALUATION OF SBI BANK BANK AND ITS COMPETITORS IN

DELIVERY CHANNELS: -

When new private banks started installing ATMs across the length and breath of the

country. Customers started flocking in droves. A care in point is ICICI bank. During the

liberalization of the banking sectors ICICI bank, which did not have a huge national

network, realized that it could use it to enhance its value added offerings.

Say O.P.Srivastava, head of the retail channel infrastructure group at ICICI bank when

the banking sector was liberalized. We knew that to get a lead over the well-entrenched

PSU bank we had to take the help of delivery channels like ATM. There a was the only

way to counter the reach of national player. ICICI bank is the most aggressive player of

ATMs and has seen its base surge from 125 ATMs in January 200 to 1200 today such as

been the impact of ATMs that ICICI banks is customer base has grown from two million

to five million in the last two years, Srivastava attributes this increase to the increase in

ATMs outlets.

Player from the bank is the other big try which has in the banking industry which has

aggressively. Though SBI BANK bank has armada half the number of ATMs as

compared to ICICI bank, its ATMs are among the higher transaction in the world says

Mudit Saxena, Vice President for

74
retail marketing and head of net banking at SBI BANK bank, "The average per day

transactions at SBI BANK bank ATMs is 350 - 400, with same ATMs recording as many

as 700 transaction per day. " After tech survey banks take UTI bank and ABX Amro have

also become extremely aggressive in installing ATMs.

In the case of UTI bank the ATMs have added a fillip to the banks customer base. Says

V.K. Ramani, president for IT at UTI bank, " from the first year of ATMs installation, we

have seen a surge in our customer base currently we have 647 ATMs servicing a has of

1.3 million customer. Over 90% of cash withdrawal of cash withdrawals are done through

ATMs. The number of ATMs transaction have also increased from are million in

September 2001 to 2.5 million in September 2002 with growth figures like this its no

wonder that every branch manager wants an ATMs installed in his area of operation.

ABN Amro bank too has a similar story to tell. Like UTI bank this bank also saw a 90%

increase in its cash withdrawals once it increased its ATM outlets. We are restricted with

respect to the timings, but an ATM gives a customer access to our bank 24 hours, 365

day, 7 day a week. ABN Amro bank has added close imitative.

Summaries the evaluations of the Indian banking industry perfectly. Bank followed to

broad approaches when adopting technologies. The first approach was evolution any

banking play who has large brick and mortar legacy, particularly the public sector banks,

kept the banking channels intact and automated the bottleneck points. This approach was

75
adopted by around 80% of the industry. However, some back adopted a revolutionary

approach and changed the banking scenario altogether. State bank of India is a good

example of the evolutionary approach, whereas SBI BANK bank and ICICI bank, are

good examples of the revolutionary approach. Some banks have gone a step ahead and

share their ATMs with other banks. For instance, ABNAMRO bank has a private ATM

sharing agreement with UTI bank.

Banks are also developing new strategies to leverage their ATM outlets. For instance,

rather than set upon branch in every suburb, ICICI bank has hit upon a ratio of 8 ATMs to

one branch office, thus effectively reaching out to a large customer base, at a substantially

lower cost. ABN Amro launched Royalties, India's first banking rewards programme. The

customer gets rewarded every time he uses any of the bank's electronic access channels.

If the customer bites the bait, it not only reduces the work load, but also translates into

huge cost savings.

PSU banks, which are witnessing their customer base dwindling, are now looking at

playing the same game. Market analysts believe that the

installed base of ATMs which was so far primarily driven by private sector banks, will be

driven by PSU banks in the near future.

76
SERVICE STRATEGY OF

THE SBI BANK BANK

77
 SERVICE STRATEGY OF THE SBI BANK BANK

SBI BANK bank aims at full customer satisfaction its customers range from ordinary

household to high profile business houses. It has wide range of type of account and

several other payment and deposition facilities to cater to the need of these customers for

speedy transaction to match the demand of e-commerce .It has several model facilities

like internet banking, telebanking etc. all the cheques presented to SBI BANK bank are

accounted within a day where drawee branch is in the same city for out station cheques it

takes maximum three days only. It has a team of dedicated motivated & trend

professionals who listen to and sort out the problems of customers. To avoid long queue

and waiting lines it has avoid network of reliable ATMs through out the country .It has

ATMs are joined to the main server who satellite link which helps it to maintain data of

every transaction ,after each transaction customer is served with the bank statement the

customer may also access transfer his account via internet in addition all these services

the bank also provides customers with debit and credit cards which allows them to make

transaction any where in the world which has visa compatibility in this way SBI BANK

bank epitomizes.

The merits of both orthodox and electronic banking. Thus SBI BANK Bank not only tries

to satisfy its customers but also make all attempts to delight them.

SBI BANK Bank has three pronged services strategy :

1. People management

2. physical Environment Management

3. process Management

78
1. People Management

SBI BANK Bank has well qualified team of professional team of professionals

who are experts in customer relationship management. They have achieved.

Thus level of expertise through training and motivation program taken up at

regular interval because of this high levels of competence SBI BANK Bank is

often of called as Indian Foreign Bank.

2. Physical Environment Management

Every Branch and ATM’s of SBI BANK Bank is located in the posh area of the

locality it helps the bank to create a good image among customer.

Further it helps customers access the bank facilities in leisure time that is while

marketing or on way to some important destination.

Further all ATMs and branches are fully air conditioned with relaxing

environment which puts visitors at ease and peaceful relax the tension and stores

of customers.

3. Process Management

SBI BANK Bank has simplified procedures for transaction and opening

accounts it has done away with Hassle of Going centers which are mandatory in

many in many banks similarly it has done a way with many lumbers one and

non essential procedures which helps customers reduce stress and under tension.

79
 ODPEC ANALYSIS
The opening and closing of A/c pass through several stage which is abbreviated as

ODPEC. The details of which as follows

ODPEC

O-Opening A/c are opened at local level immediately.

D/p-Developing A/c are developed in Mumbai where date entry is done and computed

within 12 to 15 days working days.

C-closing A/c are closed afters a notive from the holds at local level.

80
SWOT ANALYSIS

81
 SWOT ANALYSIS

Strength

The keys strength areas of SBI BANK Bank are its motivated and highly competent

staff who are aggressive in their pursuit for excellence in terms of employee

competence it rivals the highly rated foreign banks.

Weakness

Though SBI BANK Bank has wide coverage of ATM Network through out the

country it is not considered adequate keeping in view is wide customer base.

Opportunity

SBI BANK Bank has good opportunity in Rural area and offices etc. which are still

untouched by banks of such repute are considered virgin markets.

Threat

Other banks like ICICI, SBI, UTI, IDBI etc are expanding at a very fast rate and are

perceived as threat to SBI BANK Bank.

82
DATA - ANALYSIS

83
 DATA - ANALYSIS

BANKWISE DISTRIBUTION OF ACOUNT HOLDERS

Based on the response of 250 people following table has been made :

NAME OF THE BANK NO. OF ACCOUNTS %age

SBI BANK 70 28%
ICICI 110 44%
UTI 20 8%
IDBI 50 20%

RANK IN ORDER OF BANKS WITH RESPECT TO NUMBER OF

CUSTOMERS HELD

1. ICICI

2. SBI BANK

3. IDBI

4. UTI

84
 POPULARITY OF THE TYPES OF ACOUNTS

Based on the response of 250 people following table has been made

Name of Account Used by people % age

SAVINGS 80 32%
CURRENT 70 28%
FIXED 40 16%
SALARY 60 24%

85
Types of accounts held by people ranked in order

1. Savings

2. Current

3 Salaries

4. Fixed

HENCE IT IS EVIDENT FROM THE DATA THAT SAVINGS ACCOUNTS ARE THE

MOST POPULAR ONES AMONG ALL TYPES OF ACCOUNTS. WHERE AS FIXED

DEPOSITS ARE LESS POPULAR AND SALARY ACCOUNTS COMES THIRD IN

RANKING>

86
 MOST SOUGHT AFTER ATTRIBUTES OF A BANK

People ranked different attributes as 1,2 ,3 etc.,

Based on these responses mean rank has been calculated.

ATTRIBUTES MEAN RANK

ATM 2.6
FACILITIES 3.88
LOCATION 2.72
SERVICE 4.24
ATMOSPHERE 5.276
EMPLOYEE BEHAVIOUR 3.388

87
 MEAN RANK

6
5.276
5
4.24
3.88
4 3.388

2.6 2.72
3

0
ATM FACILITIES LOCATION SERVICE ATMOSPHERE EMPLOYEE
BEHAVIOUR

NOW ARRANGING THE MEAN RANKS IN ASCENDING ORDER WE GET THE

OVERALL RANK WHICH IS AS FOLLOWS:

1. ATM

2. LOCATION

3. EMPLOYEE BEHAVIOUR

4. FACILITIES

5. SERVICE

6. ATMOSPHERE

88
89
 SATISFACTION LEVEL OF CUSTOMERS

FROM THE RESPONSES OF CUSTOMERS OF DIFFERENT TYPES OF

ACCOUNTS CUSTOMER SATISFACTION LEVEL HAS BEEN GAUGED.

SAVINGS 70%
CURRENT 60%
SALARY 55%
FIXED 70%

90
POSSIBILITY OF EXPANSION CONSIDERING PRESENT CUSTOMER BASE

From the responses of question whether people would like to open another account

following table has been made

YES 45%
NO 55%

CUSTOMER IN GHAZIABAD USED ATMs FOR WHAT PURPOSE IN

PERCENTAGE

91
 2% 5%
8%

85%

Cash withdrawal Balance Inquiry

Cash deposit change of pin no.

92
COMFORT LEVEL OF USERS: -

Users of e-banking are comfortable with ATM. But not used, not aware and also not

comfortable with other channel in Ghaziabad.

% OF PEOPLE FILLS COMFORT IN USING ATMs

AGE WISE

90%
80% 82%

70%
60%
57%
50%
40%
34%
30%
20%
10% 12%

0%
Age 18 -25 Age 26 - 40 Age 41 - 55 Age 55 - Above

% OF PEOPLE FILL COMFORT IN USING ATMs

93
 OCCUPATION WISE

27%
87%
44%

68%

Student Service Man Business Man Govt. Employee

94
 CONCLUSION

A call from one of the direct marketers open the saving account, being termed by

them as "saving accounts", where in SBI bank databases of retail chains, there are

some of the aggressive selling strategies applied by some of the government sector

today.

In the many years saving account was opened up, the new players have grabbed

nearly 25 per cent of the total banking sector, in terms of the total market, In terms of

interest rate high potential growth of market. SBI bank having 300 accounts in a

month. The numbers of the dozen private bank together, and a new saving account

market to previous year. There is a clear shift from the one - size - fits - all strategy of

yore to a more flexible, customer - centric one that has been adopted. Until the new

players came along, what passed in the name of saving account was a safety of

money.

But a true banking product, experts say, must offer an optimal balance between

protection & saving. And that's the formula, like SBI bank, the new customers have

cottoned on to, On offer from them is an array of products ranging from traditional

term endowments and safety and security to contemporary whole accounts. SBI e.g.

has 11 products and 9 riders that can be customized to make more than 250 different

95
combinations and National oriental has 8 products with 6 riders. The idea behind

product flexibility is to cover as many customers as possible.

FINDINGS

96
 FINDINGS

1. From the response of the Questionnaire gathered and findings the experience

during the survey from of people around, about the SBI BANK Bank, a lot of

conclusion and findings have been arrived at which are sufficient to unravel the

mysteries and connotations of customer behavior and their satisfaction.

2. Since SBI BANK Bank is number two in terms of number of account holders, and

has a positive image and enormous goodwill among masses elevates its position

from niches to runner in retail banking sector. It can very well take on the

challenge posed by ICICI Bank and try to improve its position by focusing on key

strength areas and strategically eliminating its weak points.

3. For expansion SBI BANK Banks should make forays into semi-urban and smaller

cities and also rural areas .In fact these days, rural income is increasing at a much

faster rate then. Urban income and also the market are considered virgin which

makes the launching and expansion prospects very good one. In this way the Bank

can

97
4. Gain foothold over these territories and reap rich harvest in terms of booming

account numbers.

5. However it was felt during the survey that major constraint which may laggard

the growth of SBI BANK Bank is the inadequate number of ATMs across the

country. The Bank need to improve upon this front because in terms of customers

consideration of attributes in choosing a bank ATMs and location of it are of

paramount importance.

6. Since saving account ate the most popular among masses, innovative ideas has to

be framed to inveigle new prospects into this venture. Possible targets could be

school and college going students, housewives and small businessmen who could

easily put their money from irregular source of income into this account.

7. Now-a-days Banking is no more the way of only providing interest for the

deposited money, but they are the ways of accessing and transacting with them

from anywhere and anytime at any part of the world. Hence, flawless and

effortless access of bank accounts from mobile phones and Internet has to be

made available.

98
8. It is also felt that in the era of e-banking where transaction is more on the IT

highway the success of bank will depend more on building information networks

rather then anything else. In the near future all existing banks including SBI

BANK Bank may have to rival Airtel and hutch network, which too might

become Banks very soon rather then competing among themselves. Hence vision

for success in near future is building up of information gathering and

dissemination network base

99
SUGGESTIONS AND

RECOMMENDATIONS

100
 SUGGESTIONS AND RECOMMENDATIONS
 Try to improve after sales services.

 To be some quality conscious.

 Try to install ATM’s at more convenient places for their customers.

 Try to provide Complete/Actual information to the customers.

 Customers must have all the information regarding charges & fees.

 SBI BANK must issue at par cheques to all their customers.

MAKE STRONG PUBLIC RELATIONS:

The bank has to provide better services to satisfy the needs and wants of customers

specially on the occasion of deepawali and dashahara like festivals so that the customer

has to satisfied with their services of banks the bank is to provide loans, specially housing

loans to the customer at very low interest rates so that the every middle class family is to

avail loans without any problem.

101
CONTINUOUS MARKET FEED BACK:

To make the good relation with the customers, it is very important to take feed back time

to time to know about the problems and difficulties which are faced by the customers.

PROVID RECENT INFORMATION TO THE CUSTOMERs:

The bank is able to give as many as possible information’s to our customers so that the

customer is able to understand which type of information is to be used in a particular

sector.

102
TRY TO INPROVE ON LINE TRADING:

Due to on line trading the customers are given way of opening and depositing their

money on the basis of on line services and make trading. Of shares and mutual funds

TRY TO INSTALL ATM’s AT MORE CONVENIENT PLACES:

This financial year bank also try to increase the ATMs so customers can avail their banks

as well as ATM’s as many as possible places specially in commercial places like petrol

pumps, in market , in the hospital . So that the customer has convenience to Deposit and

withdraw their money without problems.

TRY TO OPEN EXTENTION COUNTER AT VARIOUS PLACES:

The bank has to open their extension counter in various places of their city so that the

deposit of bank is also increase and the turnover of bank during facilities which is

provided by bank cheaper rate.

103
BIBLIOGRAPHY

104
 BIBLIOGRAPHY
BOOKS:-

1. MARKETING CHANNELS (fifth edition)

-By Stern-EL Anasary

2. MANAGEMENT INFORMATION SYSTEM (6th edition)

-by Lordon& Lordon

WEBSITE -

1. www.yahoo.com

2. www.SBI BANKbank.com

6. www.economictimes.com

NEWS PAPER-

1. THE FINANCIAL EXPRESS

1. BUSINESS STANDERED

MAGAZINE-

1-CAPITAL MARKET

2-EXPRESS COMPUTER

3-E-COMMERCE

4-BUSINESS INDIA

SBI BANK BANK CATALOUGE

105
QUESTIONNAIRES

106
APPENDIX

QUESTIONNAIRES

I thanks for agreeing to spare 5 minutes of your's time for filling up this

questionnaire. I am doing this survey of 100 customers of deferent banks. All details

given by you will be kept strictly confidential.

1- DO YOU HAVE ANY A/C IN BANKS? IF YES GIVE THE NAME OF BANKING

ORGANIZATION.?

I------------------------------ II- -----------------------------

NO

2- HOW LONG RELATION YOU HAVE WITH YOUR BANK?

A- LESS THAN 1 YEAR. B-1-3 YEARS

C-3-5 YEARS. D-MORE THAN FIVE YEARS.

3-WHAT SATISFIED YOU MOST IN YOUR BANK?

A- RELIABILITY B- PERSONAL CARE C-FAST SERVICE

D-OTHERS (SPECIFY)…………………………………………………..

4-DO YOU LIKE 24 HOURS, 365 DAYS AND 7 DAYS WEEK BANKING IN THE

PRESENT DAYS.

A) YES B) NO

107
5-WHICH OF THE ELCTRONIC BANKLING CHANNELS YOU ARE USING.TICK

A-ATM B- PHONE BANKING C- MOBILE BANKING

D-INTERNET BANKING E - OTHERS (SPECIFIED) ----------------------

6-DO YOU FIND E-AGE BANKING CHANNELS ARE HELPFUL FOR YOU.

A) YES B) NO

7-CAN E-AGE BANKING CHANNELS REPLACE TRADITIONAL BANKING.

A) YES B) NO

8- FOR WHAT PURPUSE YOU USE E-AGE BANKING CHANNELS.

A- CASH WITHDRAW B- BALANCE INQUIRY

C- CASH DEPOSIT D- OTHER THAN IT (Specify)

--------------------------------------------------------------------------------------.

9- DO YOU FIND YOURSELF COMFORTABLE WITH E-AGE BANKING

CHANNELS.

A) YES B) NO

IF NO ,WHY?…………………………………………………………………………..

108
10- DO YOU THINK E-AGE BANKING CHANNELS ARE.

A- COST EFFECTIVE B- INCREASES PRODUCTIVITY

C- TIME SAVING D- NONE OF THESE

11- WHICH BANK IS BETTER IN MANAGING E-AGE BANKING CHANNELS?

(RANK IN ORDER.)

A- ICICI B- SBI BANK C- IDBI

D- UTI E- SBI F- INDUS IND

12- WHAT ATTRACTS YOU MOST? (RANK)

LOCATION
EMPLOYEE BEHAVIOUR
ATM
FACILITIES
SERVICE
ATMOSPHARE

13- ARE YOU SATISFIED WITH THE BANK

(YES/NO)

14- IF YES DO YOU WANT TO OPEN ANOTHER ACCOUNT

(YES/NO)
15- IF NO REASON FOR DISSATISFACTION

109
SUGGESTIONS AND FEED BACK (About e-age banking and challenges)

-…………………………………………….…………………………………………….

-…………………………………………….…………………………………………….

PERSONAL DETAILS-

NAME ………………………………………………………………………..

AGE - 18-25 YR 25- 40YR.

40-55 YR. MORE THAN 55YR.

SEX - M F

OCCUPATION ……………………………………………………………………

110