A

SYNOPSIS
ON
“A STUDY OF FINANCIAL PERFORMANCE OF SBI BANK”
SUBMITTED TO
RASTRASANT TUKDOJI MAHARAJ NAGPUR UNIVERSITY
NAGPUR

SUBMITTED BY
ARZOO CHANDRAMUNI VAIDYA
(FINANCIAL MANAGEMENT)
GUIDANCE
OF
DR. PRASHANT MANUSMARE
DEPARTMENT OF BBA
J.M. PATEL COLLEGE OF BHANDARA
BANK PROFILE INTRODUCTION

State Bank of India (SBI) is one of the biggest state-owned financial institutions in
India. Headquartered in Mumbai, the bank provides a wide range of products
and services to its customers, which includes commercial enterprises, large
corporate, public bodies and institutional customers. SBI is also one of the
largest banks in India in terms of market capitalisation.
 

The bank descends from the Imperial Bank of India, which was formed by merging Bank
of Calcutta, Bank of Madras and the Bank of Bombay in 1806. The Imperial Bank of India
became the State Bank of India in 1955 after Government of India took control of it with
Reserve Bank of India (RBI) taking a 60 per cent stake in it. In 2008, the government took
over the stake held by the RBI. Representing the legacy of over 200 years, SBI has
shown consistent growth compared to other public sector lenders in India.

Some of the services offered by the bank to its customers include domestic treasury,
brokering services, revised service charges, ATM services, internet banking, E-pay, E-rail,
safe deposit locker, MICR codes, foreign inward remittances, doorstep banking services,
among others. A Fortune 500 company, SBI is also among the top league of 50 global
banks with a balance sheet size of over Rs 30 lakh crore. The bank comprises 24,000
plus branches along with 59,000 plus ATMs serving 42 crore plus customers. SBI has an
overseas presence through over 195 foreign offices spread across 36 plus countries
RATIONALE & SIGNIFICANCE

The first thing that any senior officer in State Bank of India (SBI) will point out to you is
its sheer size — and explain why it cannot be compared to the rest of the players in
India’s banking industry. Though SBI is not really huge by global standards (it is ranked
60th in the world with a balance sheet of nearly $277 billion, compared to Citibank’s
$2.3 trillion), it is gargantuan compared with any Indian bank. It is the equivalent of the
next three largest domestic banks — ICICI Bank, Punjab National Bank and Bank of
Baroda — rolled into one and accounts for one-fifth of India’s banking business. And it
has been doubling in size every five years. In almost every business it is in, SBI is by far
the biggest player.

It is the largest mortgage lender (home loans), bigger than HDFC. It’s the largest car
financier (individuals) and the largest credit card issuer. It has nearly 175 million savings
accounts (it opened nearly 29 million in FY13). And sees about 2,000 transactions a
second taking place across its network of close to 14,500 branches. That’s nearly 15
billion transactions a year. If trends are an indication, SBI’s balance sheet will double
again in five years.

Size, unfortunately, is a double-edged sword. The problems that SBI faces are also
bigger than any other bank’s. First, over the next five years, it needs to raise the kind of
financial capital that is unprecedented in the country — over Rs 1.5 lakh crore — and
which will test the fiscal strength of its primary owner, the government of India. It is also
looking at a looming human capital crisis — with 60-odd top executives expected to
retire over the next three years. It has to contend with a huge quantum of non-
performing assets (NPA) — over Rs 50,000 crore — despite its aggressive efforts to deal
with them for the past few years.
OBJECTIVES

i) To act in accordance with the broad economic policies of the government;

(ii) To encourage and mobilise savings by opening branches in rural and

semi-urban areas and to promote rural credit

(iii) To establish government partnership in the provision of cooperative

credit;

(iv) To extend financial help for the establishment of licensed warehouses

and cooperative marketing societies;

(v) To provide financial help to the small scale and cottage industries;

(vi) To provide remittance facilities to the banking institutions.

The State Bank of India acts as an agent of the Reserve Bank in all those
places where the latter does not have its branches.
RESEARCH METHODOLOGY

Research methodology is the specific procedures or techniques used to

identify, select, process, and analyse information about topic. In a
research paper, the methodology section allows the reader to critically
evaluate a study’s overall validity and reliability.

Primary Data Sources:-

The sources of primary data includes:-

1.Interview data:- For having information regarding historical background and

future development of the bank researcher has interview chief accountant
and author of the bank .

2.Direct Personal Investigation:- In personal investigation the manager of state

bank of India , finance department have been interviewed to collect data.

Secondary Data Sources:-

The sources of secondary data includes:-

 Books
 Websites
 Journals
 Magazines
 Newspapers
 Annual Reports

HYPOTHESIS
DEFINATION:-
“Hypothesis can be defined as a tentative generalization of the validity of
which remains tested. In this, most elementary stage, the hypothesis may be
guess, imaginative ideas, which becomes the basis for action or
investigation.”

- There are two types of Hypothesis:-

1. Null Hypothesis (Ho)

2. Alternative hypothesis(H1)

Null Hypothesis(Ho) of my project is that,

 The financial performance of State Bank of India is satisfactory.

 There is a scope of financial performance in State Bank of India.
 There is the study of financial performance in State Bank of
India.

Alternative Hypothesis(H1) of my project is that

 The financial performance of State Bank of India is not

satisfactory.
 There is no scope of financial performance in State Bank of
India.
 There is no study of financial performance in State Bank of
India.
CHAPTERISATION

Chapter 1:- Company Profile

Chapter 2:- Introduction

Chapter 3:- Rational and Significance

Chapter 4:- Literature Review

Chapter 5:- Objectives

Chapter 6:- Research methodology

Chapter 7:- Hypothesis

Chapter 8:- Data collection and analysis

Chapter 9:- Conclusion

Chapter 10:- Suggestions

Chapter 11:- Limitations

Chapter 12:- Bibliography

Chapter 13:- Annexure .

BIBLIOGRAPHY