A project report on awareness level of personal banking products of SBI bank

CONTENTS

SL. NO PARTICUALARS PAGE .NO

1 EXECUTIVE SUMMARY 1-3

2 INTRODUCTION TO THE STUDY 4

3 BANKING INDUSTRY OVERVIEW 5-14

4 NEED FOR THE STUDY 15

5 ORGANIZATION PROFILE 16-22

6 PERSONAL BANKING SCENARIO 23-25

7 SBI’S PERSONAL BANKING 26-51

8 OBJECTIVES OF THE STUDY 52

9 METHODOLOGY 53

10 ANALYSIS OF THE STUDY 54-78

11 FINDINGS 79-80

12 RECOMMENDATIONS 81

13 CONCLUSION 82

ANNEXURE:-
14 83-84
QUESTIONNAIRE

15 CODE SHEET 85-86

16 BIBILOGRAPHY 87

Awareness Level of Personal Banking Products of SBI Bank

EXECUTIVE SUMMARY

The Banking Industry Profile is-

Banking in India has its origin as carry as the Vedic period. It is believed that the transition
from money lending to banking must have occurred even before Manu, the great Hindu jurist,
who has devoted a section of his work to deposits and advances and laid down rules relating
to the interest. During the mogal period, the indigenous bankers played a very important role
in lending money and financing foreign trade and commerce. During the days of East India
Company, it was to turn of the agency houses top carry on the banking business. The general
bank of India was the first joint stock bank to be established in the year 1786.The others that
followed were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustan is
reported to have continued till 1906, while the other two failed in the meantime.
After the second phase of financial sector reforms and liberalization of the sector in the
early nineties, the PSB’s found it extremely difficult to complete with the new private sector
banks and the foreign banks. The new private sector first made their appearance after the
guidelines permitting them were issued in January 1993.

The Organization Profile is-
Not only many financial institution in the world today can claim the antiquity and majesty of
the State Bank Of India founded nearly two centuries ago with primarily intent of imparting
stability to the money market, the bank from its inception mobilized funds for supporting
both the public credit of the companies governments in the three presidencies of British India
and the private credit of the European and India merchants from about 1860s when the Indian
economy book a significant leap forward under the impulse of quickened world
communications and ingenious method of industrial and agricultural production the Bank
became intimately in valued in the financing of practically and mining activity of the Sub-
Continent Although large European and Indian merchants and manufacturers were
undoubtedly thee principal beneficiaries, the small man never ignored loans as low as Rs.100
were disbursed in agricultural districts against glad ornaments.
A highly efficient and experienced management functioning in a well-defined
organizational structure did not take long to place the bank an executed pedestal in the areas
of business, profitability, internal discipline and above all credibility

Babasabpatilfreepptmba.com 2


The Objectives are-

 To Know The Customer Preference Towards Different Products Of SBI.
 To Know the Perception of Customers towards SBI’s Personal Banking Products.
 To know the awareness level of customers towards SBI’s facilities.

The Need for the Study is-

The Indian Banking industry comprises segments that provide comprehensive banking
services to individuals, corporate and small business. Industry segments are Public Sector
Banks, Private Sector Bank and Foreign Banks.
In this Project the report is mainly focused on Awareness Level of Personal Banking
Products of SBI.

The Data Collection Method is-
To fulfill the objectives of my study, I have taken both into considerations viz primary &
secondary data.

Primary data: Primary data has been collected through personal interview by direct contact
method. The method, which was adopted to collect the information, is ‘Personal Interview’
method by using questionnaire. Personal interview and discussion was made with manager
and other personnel in the organization for this purpose.

Secondary data: The data is collected from the Internet, Textbooks.

The various sources that were used for the collection of secondary data are

o Websites – www.SBI.com
o Www.google.com.
Sample size:

• Samples of 100 customers of the bank were chosen for the purpose of study.

Sampling Method: Random Sampling Method

• From the large number of account holder’s of the bank, 100 customers were selected

randomly from the bank’s database were considered for the study.



The Findings are-
 Among the respondent 99% said they wish to transact or deal with persona ling
products of SBI bank and 1% of them said don’t want to open account.
 The SBI customer Rank the SBI products as shown in the above chart. 26% of
them say the PERSONAL products of SBI are good, 50% rank them as Best, and
3% rank it as Moderate and remaining 1% rank them as poor.
 There are 14% of the customers who are using On-Line Banking weekly and 5%
of them are using monthly.

The Recommendations are-
1) The costumers are aware of only few products of SBI Personal banking products. So
bank should provide the information regarding the availability of the products.
2) Disbursement of loans should be quickly done as and when required.
3) There are many People who don’t know about On-Line Banking, so bank should help
to know about the operations and facilities.

The Conclusion is-

Most of the customers are aware of few SBI personal banking products like Home Loan,
Savings Account, Education loan and they are not aware of products like Loan against Shares
& Debentures, Loan against Mortgage of Property. So the bank should help the customers to
know about such products, which they are less aware. They are satisfied on the interest of
Personal banking products.



INTRODUCTION TO THE STUDY

The Indian economic is growing. There are various factors contributing for the development
of economy. One of the industries, which have revolutnalise the economy, is banking.
Change in the IT & faster growth has changed the banking operations to a great extent.
Banking operations have led to a great development of economy & meeting customer’s
needs. Among various sectors that bank is involved, Personal Banking is one area that has
changed gradually in meeting dynamic needs of customers.

TITLE OF THE PROJECT

“Awareness Level of Personal Banking Products of SBI Bank”

Organization: STATE BANK OF INDIA, RANEBENNUR

BACKGROUND OF PROJECT TOPIC

I have undertaken my study in area of Personal Banking in order to get the basic
understanding of banking operations especially Personal Banking. As Personal Banking
activity has been changing & very completive in nature in meeting needs of customers. State
bank has been focus on Personal Banking. The idea of undertaking this project is to
understand the customer’s present expectation from bank & even to know their perception
about Personal Banking in this competitive banking scenario.
The project title is Awareness Level of Personal Banking Products of SBI Bank,
Ranebennur.



BANKING INDUSTRY OVERVIEW

History:

Banking in India has its origin as carry as the Vedic period. It is believed that the transition
from money lending to banking must have occurred even before Manu, the great Hindu jurist,
who has devoted a section of his work to deposits and advances and laid down rules relating
to the interest. During the mogal period, the indigenous bankers played a very important role
in lending money and financing foreign trade and commerce. During the days of East India
Company, it was to turn of the agency houses top carry on the banking business. The general
bank of India was the first joint stock bank to be established in the year 1786.The others,
which followed, were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustan is
reported to have continued till 1906, while the other two failed in the meantime. In the first
half of the 19th Century the East India Company established three banks; The Bank of Bengal
in 1809, The Bank of Bombay in 1840 and The Bank of Madras in 1843.These three banks
also known as presidency banks and were independent units and functioned well. These three
banks were amalgamated in 1920 and The Imperial Bank of India was established on the 27 th
Jan 1921, with the passing of the SBI Act in 1955, the undertaking of The Imperial Bank of
India was taken over by the newly constituted SBI. The Reserve Bank which is the Central
Bank was created in 1935 by passing of RBI Act 1934, in the wake of swadeshi movement, a
number of banks with Indian Management were established in the country namely Punjab
National Bank Ltd, Bank of India Ltd, Canara Bank Ltd, Indian Bank Ltd, The Bank of
Baroda Ltd.
The Central Bank of India Ltd .On July 19th 1969, 14 Major Banks of the country were


nationalized and in 15th April 1980 six more commercial private sector banks were also taken
over by the government. The Indian Banking industry, which is governed by the Banking
Regulation Act of India 1949, can be broadly classified into two major categories, non-
scheduled banks and scheduled banks. Scheduled Banks comprise commercial banks and the
co-operative banks.
The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969
and resulted in a shift from class banking to mass banking. This in turn resulted in the
significant growth in the geographical coverage of banks. Every bank had to earmark a min
Percentage of their loan portfolio to sectors identified as “priority sectors” the manufacturing
sector also grew during the 1970’s in protected environments and the banking sector was a
critical source. The next wave of reforms saw the nationalization of 6 more commercial
banks in 1980 since then the number of scheduled commercial banks increased four- fold and
the number of bank branches increased to eight fold. After the second phase of financial
sector reforms and liberalization of the sector in the early nineties, the PSB’s found it
extremely difficult to complete with the new private sector banks and the foreign banks. The
new private sector first made their appearance after the guidelines permitting them were
issued in January 1993.

The Indian Banking System:
Banking in our country is already witnessing the sea changes as the banking sector seeks new
technology and its applications. The best port is that the benefits are beginning to reach the
masses. Earlier this domain was the preserve of very few organizations. Foreign banks with
heavy investments in technology started giving some “Out of the world” customer services.
But, such services were available only to selected few- the very large account holders. Then
came the liberalization and with it a multitude of private banks, a large segment of the urban
population now requires minimal time and space for its banking needs.
Automated teller machines or popularly known as ATM are the three alphabets that have
changed the concept of banking like nothing before. Instead of tellers handling your own
cash, today there are efficient machines that don’t talk but just dispense cash. Under the
Reserve Bank of India Act 1934, banks are classified as scheduled banks and non-scheduled
banks.
The scheduled banks are those, which are entered in the Second Schedule of RBI Act, 1934.


Such banks are those, which have paid- up capital and reserves of an aggregate value of not
less then Rs.5 lacks and which satisfy RBI that their affairs are carried out in the interest of
their depositors. All commercial banks Indian and Foreign, regional rural banks and state co-
operative banks are Scheduled banks. Non Scheduled banks are those, which have not been
included in the Second Schedule of the RBI Act, 1934.The organized banking system in India
can be broadly classified into three categories: (i) Commercial Banks (ii) Regional Rural
Banks and (iii) Co-operative banks. The Reserve Bank of India is the supreme monetary and
banking authority in the country and has the responsibility to control the banking system in
the country. It keeps the reserves of all commercial banks and hence is known as the
“Reserve Bank”.

Current scenario:

Currently (2009), the overall banking in India is considered as fairly mature in terms of
supply, product range and reach - even though reach in rural India still remains a challenge
for the private sector and foreign banks. Even in terms of quality of assets and Capital
adequacy, Indian banks are considered to have clean, strong and transparent balance sheets -
as compared to other banks in comparable economies in its region. The Reserve Bank of
India is an autonomous body, with minimal pressure from the Government With the growth
in the Indian economy expected to be strong for quite some time especially in its services
sector, the demand for banking services especially personal banking, mortgages and
investment services are expected to be strong. Mergers & Acquisitions., takeovers, are much
more in action in India. One of the classical economic functions of the banking industry that
has remained virtually unchanged over the centuries is lending. On the one hand, competition
has had considerable adverse impact on the margins, which lenders have enjoyed, but on the
other hand technology has to some extent reduced the cost of delivery of various products
and services. Bank is a financial institution that borrows money from the public and lends
money to the public for productive purposes. The Indian Banking Regulation Act of 1949
defines the term Banking Company as "Any company which transacts banking business in
India" and the term banking as "Accepting for the purpose of lending all investment of
deposits, of money from the public, repayable on demand or otherwise and withdrawal
by cheque, draft or otherwise".

Banks play important role in economic development of a country, like:



• Banks mobilise the small savings of the people and make them available for productive
purposes.

• Promotes the habit of savings among the people thereby offering attractive rates of
interests on their deposits.

• Provides safety and security to the surplus money of the depositors and as well provides a
convenient and economical method of payment.

• Banks provide convenient means of transfer of fund from one place to another.

• Helps the movement of capital from regions where it is not very useful to regions where it
can be more useful.

• Banks advances exposure in trade and commerce, industry and agriculture by knowing
their financial requirements and prospects.

• Bank acts as an intermediary between the depositors and the investors. Bank also acts as
mediator between exporter and importer who does foreign trades.

Thus Indian banking has come from a long way from being a sleepy business institution to a
highly pro-active and dynamic entity. This transformation has been largely brought about by
the large dose of liberalization and economic reforms that allowed banks to explore new
business opportunities rather than generating revenues from conventional streams (i.e.
borrowing and lending). The banking in India is highly fragmented with 30 banking units
contributing to almost 100% of deposits and 60% of advances.



The Structure of Indian Banking:
The Indian banking industry has Reserve Bank of India as its Regulatory Authority. This is a
mix of the Public sector, Private sector, Co-operative banks and foreign banks. The private
sector banks are again split into old banks and new banks.

Reserve Bank of India
[Central Bank]

Scheduled Banks

Scheduled Scheduled Co-operative Banks
Commercial Banks

Public Sector Private Sector Foreign Regional
Banks Banks Banks Rural Banks

Nationalized SBI & its Scheduled Urban Scheduled State
Banks Associates Co-Operative Co-Operative Banks
Banks

Old Private New Private
Sector Banks Sector Banks



Chart Showing Three Different Sectors of Banks:

i) Public Sector Banks

ii) Private Sector Banks

Public Sector Banks

SBI and Nationalized Regional Rural
SUBSIDIARIES Banks Banks

SBI and Subsidiaries:
This group comprises of the State Bank of India and its seven subsidiaries viz., State
Bank of Patiala, State Bank of Hyderabad, State Bank of Travancore, and State Bank of
Bikaner and Jaipur, State Bank of Mysore, State Bank of Saurashtra, State Bank of India

State Bank of India (SBI) is the largest bank in India. If one measures by the number
of branch offices and employees, SBI is the largest bank in the world. Established in 1806as
Bank of Bengal it is the oldest commercial bank in the Indian subcontinent. SBI provides
various domestic, international and NRI products and services, through its vast network in
India and overseas. With an asset base of $126 billion and its reach, it is a regional banking
behemoth. The government nationalized the bank in1955, with the Reserve bank of India
taking a 60% ownership stake. In recent years the bank has focused on two priorities, 1),
reducing its huge staff through Golden handshake schemes known as the Voluntary
Retirement Scheme, which saw many of its best and brightest defects to the private sector,
and 2), computerizing its operations.

The State Bank of India traces its roots to the first decade of19th century, when the Bank of
Calcutta, later renamed the Bank of Bengal, was established on 2 jun 1806. The government
amalgamated Bank of Bengal and two other Presidency banks, namely, the Bank of Bombay
and the bank of Madras, and named the reorganized banking entity the Imperial Bank of
India. All these Presidency banks were incorporated as companies, and were the result of the
royal charters. The Imperial Bank of India continued to remain a joint stock company.

Until the establishment of a central bank in India the Imperial Bank and its early
predecessors served as the nation's central bank printing currency. The State Bank of India


Act 1955, enacted by the parliament of India, authorized the Reserve Bank of India, which is
the central Banking Organizational India, to acquire a controlling interest in the Imperial
Bank of India, which was renamed the State Bank of India on30th April 1955.In recent years,
the bank has sought to expand its overseas operations by buying foreign banks. It is the only
Indian bank to feature in the top 100 world banks in the Fortune Global 1000 rating and
various other rankings. According to the Forbes 2000 listing it tops all Indian companies.

Nationalized banks:
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. In early 1993, there
were 28 nationalized banks i.e., SBI and its 7 subsidiaries plus 20 nationalized banks. In
1993, the loss making new bank of India was merged with profit making Punjab National
Bank. Hence, now only 27 nationalized banks exist in India.

Regional Rural banks:
The RBI established these in the year 1975 of banking commission. It was established to
operate exclusively in rural areas to provide credit and other facilities to small and marginal
farmers, agricultural laborers, artisans and small entrepreneurs.

Private Sector Banks

Private Sector Banks

Old private new private
Sector Banks Sector Banks

Old Private Sector Banks:
This group consists of the banks that were establishes by the privy sectors, committee
organizations or by group of professionals for the cause of economic betterment in their


operations. Initially, their operations were concentrated in a few regional areas. However,
their branches slowly spread throughout the nation as they grow.

New private Sector Banks:
These banks were started as profit orient companies after the RBI opened the banking sector
to the private sector. These banks are mostly technology driven and better managed than
other banks.

IMPORTANCE OF BANKING SECTOR IN A GROWING ECONOMY
In the recent times when the service industry is attaining greater importance compared to
manufacturing industry, banking has evolved as a prime sector providing financial services to
growing needs of the economy.
Banking industry has undergone a paradigm shift from providing ordinary banking services
in the past to providing such complicated and crucial services like, merchant banking,
housing finance, bill discounting etc. This sector has become more active with the entry of
new players like private and foreign banks. It has also evolved as a prime builder of the
economy by understanding the needs of the same and encouraging the development by way
of giving loans, providing infrastructure facilities and financing activities for the promotion
of entrepreneurs and other business establishments.
For a fast developing economy like ours, presence of a sound financial system to mobilize
and allocate savings of the public towards productive activities is necessary. Commercial
banks play a crucial role in this regard.
The Banking sector in recent years has incorporated new products in their businesses, which
are helpful for growth.

The banks have started to provide fee-based services like, treasury operations, managing
derivatives, options and futures, acting as bankers to the industry during the public offering,
providing consultancy services, acting as an intermediary between two-business entities etc.
At the same time, the banks are reaching out to other end of customer requirements like,
insurance premium payment, tax payment etc. It has changed itself from transaction type of
banking into relationship banking, where you find friendly and quick service suited to your


needs. This is possible with understanding the customer needs, their value to the bank, etc.
This is possible with the help of well-organized staff, computer based network for speedy
transactions, products like credit card, debit card, health card, ATM etc. These are the present
trend of services.

SBI Group
The Bank of Bengal, which later became the State Bank of India. State Bank of India with its
seven associate banks commands the largest banking resources in India.

Nationalization
The next significant milestone in Indian Banking happened in late 1960s when the then Indira
Gandhi government nationalized on 19th July 1949, 14 major commercial Indian banks
followed by nationalization of 6 more commercial Indian banks in 1980.

The stated reason for the nationalization was more control of credit delivery. After this, until
1990s, the nationalized banks grew at a leisurely pace of around 4% also called as the Hindu
growth of the Indian economy. After the amalgamation of New Bank of India with Punjab
National Bank, currently there are 19 nationalized banks in India.

Liberalization
In the early 1990’s the then Narasimha rao government embarked a policy of
liberalization and gave licenses to a small number of private banks, which came to be known
as New generation tech-savvy banks, which included banks like ICICI and HDFC. This move
along with the rapid growth of the economy of India, kick started the banking sector in India,
which has seen rapid growth with strong contribution from all the sectors of banks, namely
Government banks, Private Banks and Foreign banks.

However there had been a few hiccups for these new banks with many either being taken
over like Global Trust Bank while others like Centurion Bank have found the going tough.
The next stage for the Indian Banking has been set up with the proposed relaxation in the
norms for Foreign Direct Investment, where all Foreign Investors in Banks may be given
voting rights which could exceed the present cap of 10%, at present it has gone up to 49%
with some restrictions.


The new policy shook the Banking sector in India completely. Bankers, till this time, were
used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new
Wave ushered in a modern outlook and tech-savvy methods of working for traditional banks.
All this led to the PERSONAL boom in India. People not just demanded more from their
banks but also received more.

NEED FOR THE STUDY


The Indian Banking industry comprises segments that provide comprehensive

banking services to individuals, corporate and small business. Industry segments are Public

Sector Banks, Private Sector Bank and Foreign Banks.

In this Project the report is mainly focused on Awareness Level of Personal

Banking Products of SBI.

The Current Trends -

 Studying the personal banking products.

 The SBI customers are satisfied for using the SBI personal products of SBI Bank.

 Understanding the perception of customers about personal banking.

 To know the benefits to customers from SBI personal banking products.

ORGANIZATION PROFILE



STATE BANK OF INDIA

Not only many financial institution in the world today can claim the antiquity and majesty of
the State Bank Of India founded nearly two centuries ago with primarily intent of imparting
stability to the money market, the bank from its inception mobilized funds for supporting
both the public credit of the companies governments in the three presidencies of British India
and the private credit of the European and India merchants from about 1860s when the Indian
economy book a significant leap forward under the impulse of quickened world
communications and ingenious method of industrial and agricultural production the Bank
became intimately in valued in the financing of practically and mining activity of the Sub-
Continent Although large European and Indian merchants and manufacturers were
undoubtedly thee principal beneficiaries, the small man never ignored loans as low as Rs.100
were disbursed in agricultural districts against glad ornaments, added to these the bank till the
creation of the Reserve Bank in 1935 carried out numerous Central – Banking functions.
Adaptation world and the needs of the hour has been one of the strengths of the Bank, in the
post depression exe. For instance – when business opportunities become extremely restricted,
rules laid down in the book of instructions were relined to ensure that good business did not
go post. Yet seldom did the bank contravene its value as depart from sound banking
principles to retain as expand its business. An innovative array of office, unknown to the
world then, was devised in the form of branches, sub branches, treasury pay office, pay
office, sub pay office and out students to exploit the opportunities of an expanding economy.
New business strategy was also evaded way back in 1937 to render the best banking service
through prompt and courteous attention to customers.
A highly efficient and experienced management functioning in a well defined organizational
structure did not take long to place the bank an executed pedestal in the areas of business,


profitability, internal discipline and above all credibility A impeccable financial status
consistent maintenance of the lofty traditions if banking an observation of a high Standard of
integrity in its operations helped the bank gain a pre- eminent status. No wonders the
administration for the bank was universal as key functionaries of India successive finance
minister of independent India Resource Bank of governors and representatives of chamber of
commercial showered economics on it.
Modern day management techniques were also very much evident in the good old day’s years
before corporate governance had become a puzzled the banks bound functioned with a high
degree of responsibility and concerns for the shareholders. An unbroken record of profits and
a fairly high rate of profit and fairly high rate of dividend all through ensured satisfaction;
prudential management and asset liability management not only protected the interests of the
Bank but also ensured that the obligations to customers were not met. The traditions of the
past continued to be upheld even to this day as the State Bank years it to meet the emerging
challenges of the millennium

ABOUT LOGO

THE PLACE TO SHARE THE NEWS ...……
SHARE THE VIEWS ……

Togetherness is the theme of this corporate loge of SBI where the world of banking services
meets the ever-changing customer’s needs and establishes a link that is like a circle, it
indicates complete services towards customers. The logo also denotes a bank that it has
prepared to do anything to go to any lengths, for customers. The blue pointer represent the
philosophy of the bank that is always looking for the growth and newer, more challenging,
more promising direction. The keyhole indicates safety and security.

LOGO



THE PLACE TO SHARE THE NEWS ...……
SHARE THE VIEWS ……

MISSION, VISION AND VALUES

MISSION STATEMENT:
To retain the Bank’s position as premiere Indian Financial Service Group, with world class
standards and significant global committed to excellence in customer, shareholder and
employee satisfaction and to play a leading role in expanding and diversifying financial
service sectors while containing emphasis on its development banking rule.

VISION STATEMENT:



♦ Premier Indian financial service group with prospective world-class standards of
efficiency
♦ Retain its position in the country as pioneers in Development banking.
♦ Maximize the shareholders value through high-sustained earnings per Share.

VALUES:
♦ Excellence in customer service
♦ Profit orientation
♦ Belonging commitment to Bank
♦ Fairness in all dealings and relations
♦ Risk taking and innovative
♦ Team playing

ORGANIZATION:
Basically an organization is a group of people intentionally organized to accomplish an
overall, common goal or set of goals. Business organizations can range in size from two
people to tens of thousands. There are several important aspects to consider about the goal of
the business organization. These features are explicit (deliberate and recognized) or implicit
(operating unrecognized, "behind the scenes"). Ideally, these features are carefully considered
and established, usually during the strategic planning process. (Later, we'll consider
dimensions and concepts that are common to organizations.)

Types of organization

a. Formal organization.
b. Informal organization.

a. Formal organization:
The formal organization or group exists in all organization. It is a group of the people
working together in all co-operations under the authority towards common goal, objectives
for the mutual benefit of the participants. The formal groups are created to carry out some
specific work to meet some goals of the organization
b. Informal Organization:


The informal organization refers to relationship between peoples in the organization
based not on procedure and regulation laid down in the organization but on the personal
attitude friendship or some common interest which may or may not be work related informal
organization.
Departmentation:
Departmentation is the process of dividing and grouping the activities of an enterprise in the
various units for the purpose of administration. The units for the purpose of administration
.the units are designated as departments’ division sector or branches.
Departmentation facilitates the benefits of specialization. It aims at achieving units of
directing, co-operation, co-ordination, control and effective communication. It leads to
effective performance of activities of the enterprise

ORGANISATION STRUCTURE

MANAGING DIRECTOR

CHIEF GENERAL MANAGER

G. M G.M G. M G. M G. M

(Operations) (C&B) (F&S) (I) & CVO (P&D)

Zonal officers

Functional Heads

Regional officers

OUR BUREAU



MR O.P. BHATT
SBI Chairman
Mumbai, June 30

Mr. O.P. Bhatt, Managing Director, State Bank of India has been appointed Chairman of the

bank. The five-year term of Mr. Bhatt will expire in March 2011. His will be the longest

tenure as SBI chairman in the recent past.

Mr. Bhatt took charge as the Managing Director, in-charge of national banking at SBI in

April. Prior to this he was the MD, State Bank of Travancore.

Mr. T.S. Bhattacharya, the other SBI MD, was appointed as acting chairman, following the

retirement of Mr. A.K. Purwar as chairman in May. However, Mr. Bhattacharya did not have

a two-year residual service, necessary for the post of chairman.

The announcement of Mr. Bhatt's appointment came on Friday at the SBI annual general

meeting in Mumbai.

It was during his tenure as MD of SBI that the bank had implemented core-banking solution

in all its branches. Starting his career as a probationary officer in SBI in 1972, Mr. Bhatt held

several key assignments in the bank. He served as Managing Director of State Bank of

Travancore from January 2005 to April 2006.

LIST OF DIRECTORS



Sl.no Name of Directors Sec. of SBI Act, 1955

1 Shri O.P. Bhatt 19(a)
Chairman

2 Shri T.S. Bhattacharya 19 (b)
MD & GE (CB)

3 Shri S.K. Bhattacharyya 19(b)
MD & CC&RO

4 Shri Suman Kumar Bery 19(c)

5 Dr. Ashok Jhunjhunwala 19(c)
6 Shri Ananta Chandra Kalita 19(ca)

7 Shri Amar Pal 19(cb)
8 Shri Piyush Goyal 19(d)
9 Dr. DevaNand Balodhi 19(d)
10 19(d)
Prof. Mohd. Salahuddin An sari
11 Shri Vinod Rai 19(e)
12 19(f)
Smt. Shyamala Gopinath

PERSONAL BANKING SCENARIO



Personal banking includes a comprehensive range of financial products viz. deposit products,
residential mortgage loans, credit cards, auto finance, personal loans, consumer durable loans,
loans against equity shares, loans for subscribing to initial public offers (IPO’s), debit cards,
bill payment services, mutual funds, investment advisory services. These products provide an
opportunity for banks to diversify the asset portfolio with high profitability and relatively low
NPAs. The categorization of Personal banking segment and have identified it as a principal
growth driver. They are slowly gaining market share in the PERSONAL space.
For several years, banks viewed consumer loans with skepticism. Commercial loans
dominated the banks portfolio as they generate high net yields with low credit risk. Consumer
loans in contrast involved smaller amounts, large staff to handle accounts and high default
rates. The banks considered them substandard. Even the regulators across the globe have not
encouraged consumer finance till very recently. However, over the past few years, fierce
competition among the banks lowered the spreads and profitability on commercial loans.
With deregulation and increase in consumer loan rates, the risk-adjusted returns in
PERSONAL sector have exceeded the returns on commercial loans.
The enormous competition has led to innovative Personal banking products that are
extremely customer-friendly and plug the loopholes in the existing similar products.
The growth in Personal banking has been facilitated by the growth in banking technology and
automation of banking processes that enable extension of reach and rationalization of costs.
ATM’s have emerged as an alternative banking channel, which facilitate low cost transaction
vis-à-vis traditional branches.
It also has the advantage of reducing the branch traffic and enable banks with small
networks to upset the traditional disadvantages by increasing their reach and spread.
The Personal banking industry is diverse and competitive. In addition, to checking and
savings account services, banks offer brokerage and insurance capabilities to manage all


aspects of a customer’s financial portfolio. Attracting profitable customers from competitors
is essential for long-term success. Personal banking has both pros and cons. In the present
situation, the bankers have very little option, but to chant ‘PERSONAL mantra’. Banks today
face complex challenges on multiple fronts. Customer expectations are higher then ever, with
growing demand for more rapid service delivery and more flexible, personalized interaction.

PERSONAL BANKING IN INDIA

The stagnation in Indian economy has resulted in poor credit absorption both for long term
funding to big-ticket projects as well as working capital. The slow down could be attributed
to lack of credit off-take by the industrial sector even as food credit continued to search. This
has resulted in limited lending opportunities to banks. Major portion of the loans raised by
corporate were to replace the existing high cost funding and is more in the nature of
arbitraging on the interest rates with various banks. The loan products to corporate with
Strong financial are now almost linked to prices of government securities- or mark up over
government paper, more over, big corporate are bypassing banks and rising money through
the debt market and commercial papers, which are cheaper than bank credit. Therefore banks
are being forced to look at the mid corporate. The tough macro economic environment,
increasing risk profile and low yield indicate that corporate banking has entered the maturity
face.
To survive and prosper amid the rapid changes that continue to redefine financial
services market place, banks hitherto concentrating on corporate borrowers are embarking
now on a strategy driven by Personal banking and fee based income in order to maintain asset
growth and profitability. The ratio of non-interest income to total funds has already increased
for some banks.


The critical success factors of banks, which are aggressively moving in the Personal banking
segment are wider distribution network, low cost of funding, low intermediation (operating)
costs, marketing capability, large product portfolio, cross-selling, proper credit appraisal
mechanism/risk assessment procedures, high service levels in terms of faster loan processing
and disbursement, flexible technology across banking platforms, multi-distribution channels,
strong brand presence and good recovery mechanism. These success factors would ultimately
transform into how well banks understand their customers and how effective they are in
meeting their new definition of access, convenience and value.

GROWTH OF PERSONAL INDUSTRY
The income levels and employment opportunities for young persons have risen in the IT,
ITES and BPO fields where salaries are generally higher by about 20 to 30%. According to
the officials of Standard Chartered Bank, the number of young people in the age of 20 to 24
who join the workforce is around three million. With a large amount of disposable income
and no financial commitments towards the family, they form a major chunk of customers for
consumer durables and FMCG. PERSONAL industry is the fastest growing industry in India,
whose growth is attributed to ideal breeding ground in the form of huge market, rising
income levels, surplus disposable income, increasing awareness due to growth of
advertisement and cable television channels and the entry of multinational brands. It is
estimated that the PERSONAL market is about Rs 9, 00,000 cr and growing at a rate of 8.5%
per annum. Based on market figures, it is estimated that the PERSONALING industry will
grow from 2 to 10% in the next five years added to this is the fact that growth in PERSONAL
industry has increased employment opportunities in this field which in turn raises the
demand for PERSONAL and consumer goods.

SBI’S PERSONAL BANKING



State Bank of India offers a wide range of services in the Personal Banking Segment, which
are indexed here.
Our products are designed with flexibility to suit your personal requirements. Enjoy 24-hour
facility through our ATMs - growing speedily it has crossed the 10000 mark Watch this space
for more details.

SBI Term Deposits SBI Loan For Pensioners

SBI Recurring Deposits Loan Against Mortgage Of Property

SBI Housing Loan Loan Against Shares & Debentures

SBI Car Loan SBI Educational Loan

SBI Personal Loan Medic-Plus Scheme



TERM DEPOSITS
Now you can earn a higher income on your surplus funds by investing those with us. We
provide security, trust and competitive rate of interest.
 Flexibility in period of term deposit from 7 days to 10 years.
 Affordable Low Minimum Deposit Amount: You can open a term deposit with
SBI for a nominal amount of Rs.1000/- only.
 Please check our Interest Rates online or simply email through our Helpline.
 Flexibility in choosing the amount you wish to invest and the maturity period.

HIGHLIGHTS

Safety - We understand the value of your hard earned money and continue to deliver on our
promise of safety and security over 200 years.
Liquidity
Loan /overdraft facility: You can avail a loan/overdraft against your deposits provides you
loan / overdraft up to 90% of your deposit amount at nominal cost. So you continue to earn
interest in your deposit and still can meet your urgent financial requirements.
Premature Withdrawal
Interest to be charged on premature withdrawal of term deposits at 0.5% below the rate
applicable for the period deposit has remained with the Bank.

 Transferability- Transfer of Term Deposits between our wide networks of branches

without any charge.
 Compounding / Flexible / Timely Payment of Interest - Under our Special Term
Deposit Scheme, interest accrues in your account and gets compounded quarterly.
Besides, we assure timely delivery of the proceeds of your deposit with interest, on
maturity. Flexibility of payment on maturity through Cash (subject to prevalent
Income Tax Act), Banker's Cheque, Credit in Savings Bank/Current account.
 Term Deposits are available at all SBI Branches
 Nomination Facility - Available.

Automatic Renewals


There is no need for you to keep track of the maturity of your deposits. Your deposits with us
will be renewed automatically, post maturity. And you continue to earn interest for same
period as that of your matured deposit, at the interest rate prevailing at the time of maturity.
Automatic renewals take place where there are no standing instructions for renewal.

Flexibility to convert your Special Term Deposit to Term Deposit and vice versa
 You can convert your special Term Deposit to a Term Deposit to receive
monthly/quarterly interest payments to match your financial requirements.
 You can also convert your Term Deposit to a Special Term Deposit, which provides
compounded rate of interest to multiply your money faster.

RECURRING DEPOSIT
Want to create a fund for your children's education or marriage or to buy a car or for a dream
holiday? Whatever may be your financial goals, through our Recurring Deposit Scheme you
can save a little every month so that at the time of need you have sufficient funds to achieve
your financial goals. Recurring Deposit provides you the element of compulsion to save at
high rates of interest applicable to Term Deposits along with liquidity to access that savings
any time. So set aside a small amount every month and earn at compounded rates of interest.
Wide Choice in Period of Deposit
• Flexibility in period of deposit with maturity ranging from 12 months to 120 months.
• Low minimum monthly deposit amount.
• You can start a Recurring Deposit with SBI for a monthly instalment of Rs.100/- only.
SBI Term Deposit Rates Apply
• Check out our Interest Rates Online or simply email through our Helpline
• Choose the amount you wish to invest and the maturity period.

HIGHLIGHTS

• Safety
We understand the value of your hard earned money and continue to deliver on our
promise of safety and security over two centuries.


• Liquidity
Loan /overdraft facility: You can avail a loan/overdraft against your deposits
provides you loan / overdraft up to 90% of your deposit amount at nominal cost. So
you continue to earn interest in your deposit and still can meet your urgent financial
requirements.
• Transferability
Transfer of Recurring Deposit accounts between our wide networks of branches
without any charge.
• Regular Instalments to your Account
Now you have motivation/compulsion to save a chosen amount every month and
create a fund, which helps you to meet your future financial needs.
• Recurring Deposits are available at all SBI Branches
• Easy and convenient access of information at SBI Internet Banking

Other Benefits
 Nomination Facility – Available
 Regular Instalments to your Account
–Save in your account through Fixed Monthly Instalments.
–Monthly Instalments can be deposited on any working day of the month.
–Delayed monthly instalments attract penalty.
–Instalments payable in multiples of Rs.10/-

Free Fund Transfer & Regular Updates
Free transfer of your funds through standing instructions from your Current or Savings Bank
Account to your Recurring Deposit Account every month for the payment of your
instalments, so that you do not have to worry about regular payments. You can monitor your
deposit through SBI Internet Banking or through a passbook issued to you.



SBI HOME LOANS

"THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ Consumer
Awards along with the MOST PREFERRED BANK AWARD in a survey conducted by
TV 18 in association with AC Nielsen-ORG Marg in 21 cities across India.
SBI Home Loans come to you on the solid foundation of trust and transparency built in the
tradition of State Bank of India. Best Practices followed in SBI mentioned below will tell
why it makes sense to do business with State Bank of India

Best practices followed in SBI
People dealing End to End service by Permanent employees of SBI who are
with you accountable to you.

SBI branch of your choice will service your loan account. You can
Place
always meet our employees face to face.

Complete transparency.
Price
Interest charged on the daily reducing balance.



No penalty for prepayments made, out of bonafide savings or
Prepayment charges
windfall gains for which evidence is produced.

Costs hidden in fine
No hidden costs
print

Complete transparency. All the features of our product, including
Transparency
interest rates, are in the public domain.

UNIQUE FEATURES:

 Provision for on the spot "In principle" approval.

 Loan sanctioned within 6 days of submission of required documents.

 Provision to finance cost of furnishing and consumer durables as part of project cost

 Repayment permitted up to 70 years of age

 Free personal accident insurance cover up to Rs.40 Lac.

 Optional Group Insurance from SBI Life at Concessional premium (Upfront premium
financed as part of project cost)

 Interest calculated on daily reducing balance basis, and starts from the date of
disbursement.



 ‘Plus’ schemes, which offer attractive packages with Concessional, interest rates to
Govt. Employees, Teachers, and Employees in Public Sector Oil Companies.
 Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban
Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/
flat

 Option to avail loan at the place of employment or at the place of construction

 Package of exclusive benefits:
• Complimentary international ATM-Debit card

• Complimentary SBI Classic/ International Credit Card.
• Option for internet-banking
• Concessional package under ‘Credit Khazana’ for prospective Auto
Loan, Student Loan, Personal Loan borrowers whose accounts are conducted
satisfactorily
• 100% concession in charges in respect of all personal remittances/ collection of
outstation cheques.

Personal loan at attractive rates under SBI Home Plus scheme tailored exclusively
for SBI Home Loan customers.

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.

Take over of an existing loan from other Banks/ Housing Finance Companies.

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.

Loan Amount

 40 to 60 times of NMI, depending on repayment capacity as % of NMI as under –

Net Annual Income EMI/NMI Ratio

Up to Rs.2 lacks 40%

Above Rs.2 lacks to Rs. 5 lacks 50%

Above Rs. 5 lacks 55%

To enhance loan eligibility you have option to add:
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, etc.) if the house/ flat being purchased are proposed to
be rented out.
3. Depreciation, subject to some conditions and Regular income from all sources.

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
Processing Fee (Special Festival Season Offer)
0.25% of Loan amount with a cap of Rs.5, 000/-(including Service Tax)
Pre-closure Penalty
No penalty if the loan is pre closed from own savings/windfall gains for which documentary
evidence is produced by the customer.
In case, the borrower does not produce such proof, penalty @2% on the amount prepaid in


excess of normal EMI dues shall be levied if the loan is pre closed within 3 years from the
date of commencement of repayment.

Security

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

Maximum Repayment Period

 For applicants up to 70 years of age: 20 years
 For applicants over 70 years of age: 15 years

Moratorium
Up to 18 months from the date of disbursement of first installment or 2 months after final
disbursement in respect of loans for construction of new house/ flat (moratorium period will
be included in the maximum repayment period)

Disbursement

 In lump sum direct in favor of the builder/ seller in respect of outright purchase
 In stages depending upon the actual progress of work in respect of construction of
house/ flat etc.

Documents

 Completed application form
 Passport size photograph
 Proof of Identity – PAN Card/ Voters ID/ Passport/ Driving License
 Proof of Residence – Recent Telephone Bill/ Electricity Bill/ Property tax receipt/
Passport/ Voters ID
 Proof of business address in respect of businessmen/ industrialists



 Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance certificate,
Land/ Building Tax paid receipt etc. (as applicable and subject to satisfaction report
from our empanelled lawyer)

SBI-FLEXI’ HOME LOANS
A customized product designed to enable borrowers to hedge their Home Loan against
unfavorable movement in interest rates. The product gives you a one time irrevocable option
to choose one of the three customized combinations of fixed and floating interest rates and
also to choose the order in which the fixed and floating rate will be availed.
Minimum Loan Amount: Rs.5 lacks
(Other terms and conditions – as applicable to regular Home Loans)

SBI-MAXGAIN’ HOME LOANS
An innovative and customer-friendly product to enable you to earn optimal yield on your
savings and minimize interest burden on Home Loans, with no extra cost.
The loan is granted as an Overdraft facility with the added flexibility for you to operate your
Home Loan Account like your SB or Current Account.
The product serves to minimize your interest cost by enabling you to park your surplus funds
in ‘SBI-Max gain’ (with the benefit to withdraw the surplus funds whenever you require),
specially in the wake of low yields from other deposit/ investment avenues.
Minimum Loan Amount: Rs.5 lacks

SBI-REALTY’ HOME LOANS
A unique product if you are on the look out for a loan to purchase a plot of land for house
construction. The loan is available for a maximum amount of Rs.20 lacks and with a
comfortable repayment period of up to 15 years.
You are also eligible to avail another Housing Loan for construction of house on the plot
financed above with the benefit of running both the loans concurrently.
(House construction should commence within 2 years from the date of a ailment of ‘SBI-
Realty’ Housing Loan)



SBI FREEDOM’ HOME LOANS

A revolutionary product designed for customers who are on the look out for a source of
finance for a property they want to invest in without mortgaging the same. All you have to do
is pledge any financial security that you have and you will get a Home Loan for your dream
home, a must-take for those who do not want to pay stamp duty for mortgage of their
property or go through the hassles of creation of mortgage. You also have an option to take
the loan by way of mortgage of the property and pledge financial securities in lieu of margin
money. Repayment is highly customized, giving you the option to repay through regular
EMIs or through maturity proceeds of the securities pledged.


SBI-OPTIMA ADDITIONAL HOME LOANS
SBI-HOMELINE SPECIAL PERSONAL LOANS

Innovative and value added products extended to existing Home loan borrowers with a
satisfactory repayment record of 3 years and whose loan is Standard Asset, with a view to
reinforce the customer loyalty and to maintain long term relationship with the borrowers. In
case of take-over of Home Loans from other Banks/HFCs, the borrower should have fulfilled
the above conditions with the present Bank/HFC.

Purpose

‘SBI-Optima’ Additional Home Loans to meet expenditure towards major repair,
renovation, addition to their house/flat, purchase
of furniture, fixtures and consumer durables
‘SBI-Homeline’ Special Personal General purpose loan to meet expenditure to
Loans meet foreseen/unforeseen contingencies



Eligibility

‘SBI-Optima’ Additional Home Loans 18 times NMI (for salaried borrowers)/
1 ½ times NAI ( for others) or
(i)25% of the original project cost of house/flat
(ii) 85% of the cost of repairs etc. or (iii) gap
between 85% of the current market price of
flat/house and actual outstanding loan dues ,

Whichever is lower (EMI/NMI ratio of all loans
should not exceed 60%)
‘SBI-Homeline’ Special Personal Loans 18 times NMI (for salaried borrowers)/
1 ½ times NAI (for others)

Interest Rates/processing fee

‘SBI-Optima’ Additional Home Loans As applicable to Home Loans
‘SBI-Homeline’ Special Personal Loans Interest rates 50bps above rates applicable to the
repayment tenure (floating rates only)

Processing fee : 0.50% of the loan amount
(including service tax)

Other Salient Features

 Inbuilt provision for a ailment of the loans on the expiry of each bloc of 5 years, the
first bloc commencing on the expiry of 5 years from the date of sanction of original
Home Loan.
 Original Home Loan and all ‘SBI-Optima’ Home Loans/’SBI-Home line’ Personal
Loans can run concurrently
 Comfortable repayment obligations – Tenure of the loans equal to the residual
maturity of the original Home Loans –



CAR LOAN

Move ahead in life with SBI Car Loans! If you have been putting off purchasing that Car, we
invite you to go through our Car Loan Scheme. Low interest rates, easy repayment options,
total transparency, finance to include vehicle registration charges, insurance, one-time road
tax and accessories (subject to conditions).Well, what are you waiting for? Just contact any of
our branches (more than 6000) that offer Car Loans or our Personal Banking Branches and
give wheels to your desire!
You can apply for an SBI Car Loan to purchase:
• A new car, jeep, Multi Utility Vehicle (MUV) or SUV (any make or model)

• A used car / jeep / MUV /SUV (not more than 5 years old). (any make or model)

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

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


• No advance EMIs. (Some Banks/companies ask you to pay one or more EMIs at the
time of disbursement of loan, thereby effectively reducing your loan amount.)
• Complete transparency: We levy interest on daily reducing balance method. When
you pay one installment, the interest is automatically calculated on the reduced
balance thereafter. When you pay interest on an annual reducing balance, as charged
by many other companies/banks, the interest amount for the coming year is
determined on the amount outstanding at the beginning of the year. You continue to
pay interest even on the amounts you repay during the year.

The Scheme
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)

Eligibility: To avail an SBI Car Loan, you should be:

• Individual between the ages 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 assesses or
• A Person engaged in agriculture and allied activities.
• Net Annual Income RS. 100,000/- and above.

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 lacks.


Types of Loan:

1. Term Loan
2. Overdraft - a) For New vehicles only
b) Minimum loan amount: RS. 3 lacks.

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/self-
employed/businessmen duly accepted by the ITO wherever applicable to be
submitted.
8. Proof of official address for non-salaried individuals.
If you were not an account holder with SBI you would also need to furnish documents that
establish your identity and give proof of residence.

EDUCATION LOAN

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


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

Expenses considered for loan

• Fees payable to college/school/hostel
• Examination/Library/Laboratory fees
• Purchase of Books/Equipment/Instruments/Uniforms
• Caution Deposit/Building Fund/Refundable Deposit
• Travel Expenses/Passage money for studies abroad
• Purchase of computers considered necessary for completion of course
• Cost of a Two-wheeler up to RS. 100,000/-
Any other expenses required to complete the course like study tours, project work etc.

Amount of Loan
• For studies in India, maximum RS. 10 lacks
• Studies abroad, maximum RS. 20 lacks
Interest Rate
For loans up to RS.4 lacks - 12.75% p.a. Floating
For loans above RS.4 lacks - 13.75% p.a. Floating
Processing Fees
• No processing fee/ upfront charges
• Deposit of RS. 10000/- for education loan for studies abroad which will be adjusted in
the margin money
Repayment Tenure
Repayment will commence one year after completion of course or 6 months after securing a
job, whichever is earlier.



Place of Study Loan Amount Repayment Period in Years

Up to RS. 7.5 lacks 5-7
In India
Above RS. 7.5 lacks 5-10
Up to RS. 15 lacks 5-7
Abroad
Above RS. 15 lacks 5-10
Margin

• For loans up to RS.4.0 lacks: No Margin
• For loans above RS.4.0 lacks:
o Studies in India: 5%
o Studies Abroad: 15%

Security

Amount Studies In India Studies Abroad
Up to RS. 4 lacks No Security No Security
Above RS. 4 lacks to RS. 7.100 Suitable third Party
Suitable third Party Guarantee
lacks Guarantee

Above RS. 7.100 lacks to RS. 10 Tangible Collateral Tangible Collateral security of suitable
lack (India)/ RS. 15 lacks(Abroad) security for full value of value of loan or suitable third party
loan guarantee.
Tangible Collateral security for full
RS 15 lacks to RS. 20 lacks ___
value of loan

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

LOAN TO PENSIONERS



If you are a Central or State Government pensioner drawing your pension through one of our
branches and are not more than 72 years of age, you can avail of a loan from your branch to
meet your personal expenses. We understand you may have an urgent or unexpected need for
funds or a family obligation to be fulfilled and appreciate your association with us. You can
avail a loan of up to a maximum of 12 months pension, subject to a ceiling of Rs.1, 00,000.
The documentation is easy. The loan may be repaid over 5 years and will carry a low interest
rate of 13.25% p.a.There are no processing fees, no hidden costs and no prepayment
penalties. Whenever you have some surplus funds, you can credit your loan account, thereby
reducing your loan liability and interest burden.

SALIENT FEATURES OF THE SCHEME

Eligibility: All Central and State Government pensioners, whose pension accounts are
maintained by our branches, the pensioner should not be more than 72 years of age.
Purpose: & Loan Amount:
To meet personal expenses. A maximum of 12 months pension with a ceiling of Rs.1,
00,000/-
Margin and Security: Margin is NIL and the spouse eligible for family pension should
guarantee the loan or any other family member or a third party worth the loan amount.
Repayment: 60 Equated Monthly Installments (EMIs) – if age of Pensioner at the time of
loan sanction is up to 70 years


Rate of Interest: 0.100% above SBAR floating i.e. 13.25% p.a.
Authorized Branches: All branches maintaining pension accounts. The facility is available
only from the branch, which is maintaining pension account of the applicant.

PROPERTY LOAN

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

Enjoy the SBI Advantage

 Complete transparency in operations
 Access this loan from our wide network of branches
 Interest rates are levied on a monthly/daily reducing balance method
 Lowest processing charges.
 Long repayment period of 60 months, up to 120 months for salaried individuals with
check-off facility
 No Hidden costs or administrative charges.
 No prepayment penalties. You can have surplus funds at any time thereby
conveniently reducing your loan liability and interest burden.

Property Loan Scheme
Avail of an All-Purpose loan against mortgage of any of your property. We offer you these
loans at all our Personal Banking Branches and those branches having Personal Banking


Divisions amongst others.

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

Eligibility:

A. An individual who is;
a. an Employee or
b. a Professional, self-employed or an income tax assesseeor.
c. Engaged in agricultural and allied activities.
B. Your Net Monthly Income (salaried) is in excess of Rs.12, 000/- or Net Annual Income
(others) is in excess of Rs.1, 100,000/-.
The income of the spouse may be added if he/she is a co-borrower or a guarantor.
C. Maximum age limit: 60 years.

SALIENT FEATURES

Loan Amount

Minimum: Rs.25, 000/-
Maximum: Rs.1 crores. 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)

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

Interest: Term Loan 0.75% above SBAR. i.e.13.100% p.a. Floating
Repayment
Maximum of 60 equated monthly installments, up to 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 and Security, as per banks extant instructions.

LOAN AGAINST SHARES DEBENTURES.

Do you need urgent cash but you don't wish to sell or liquidate your holding of shares?
Leverage your investments in shares, debentures, public sector bonds and Government
securities for loans to meet unforeseen expenses!! You need not miss out on the next stock
market boom!!
Avail of loans up to Rs.20.00 lacks against your shares/debentures to enable you to meet
contingencies, personal needs or even for subscribing to rights or new issue of shares.
Note: Loan will not be sanctioned for
1. Speculative purposes
2. Inter-corporate investments or
3. Acquiring controlling interest in company/companies.
Enjoy the SBI advantage
• Low interest rates. Further, we charge interest on a daily reducing balance!!
• Low processing charges; only 1% of loan amount - compare with 1-3% of others.
• No hidden costs or administrative charges..
• No prepayment penalties. Reduce your interest burden and optimally utilize your
surplus funds by prepaying the loan.

The Scheme
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
or Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan. The
facility is available at 100 select centers.

Salient Features
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.
Loan Amount
You can avail of loans up to Rs 20.00 lacks against your shares/debentures.
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
Margin & Interest
You will need to provide a margin amount of 100% 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.)
Repayment Schedule
To be liquidated in maximum period of 30 months through a suitable reducing DP
programmed.
In case of a default or if the outstanding is over Rs.20.00 lacks, the shares/debentures will be
transferred in the name of the Bank.
Security: Pledge of the demat shares/debentures against which overdraft is granted.

List of Identified Centers

1 Ahmedabad Baroda Surat Gandhinagar Rajkot



2 Bangalore Mysore

3 Bhopal Indore Jabalpur Raipur Gwalior

4 Bhubaneswar Cuttack Sambalpur

5 Chandigarh Jallandhar Ludhiana Amritsar

6 Chennai Coimbatore Tirupur

7 Guwahati Shillong

8 Hyderabad Visakhapatnam Karimnagar Tirupati

9 Kolkatta Siliguri Asansol (Bardhamon)
10 Lucknow Varanasi Kanpur Allahabad

11 Mumbai Pune Panjim Aurangabad Nagpur

12 New Delhi Jaipur Agra Udaipur

13 Patna Ranchi Bhagalpur

14 Thiruvananthapuram Cochin

Coverage
Scheme is available at select branches at 100 centers.

MEDI-PLUS SCHEME



For spreading smiles and cheers on the faces of our customers, we've launched a new loan
scheme keeping specialized medical treatments in mind - a scheme that we call Medic Plus!

Enjoy the SBI advantage:

• Concessions in margin amounts, interest rates and processing charges!!
• Lowest interest rates. Further, we charge interest on a daily reducing balance!!
• Lowest processing charges; only 1% of loan amount -(compare with 1-3% of others.)
• No hidden costs or administrative charges.
• No prepayment penalties. Reduce your interest burden and optimally utilize your
surplus funds by prepaying the loan.
• Flexible repayment period.

The Scheme
The Specialized Medical Treatments, not only do the cost implications run into several lacks
of rupees, but more often than not, these liquid funds also need to be generated at a very short
notice, in order to be able to make prompt hospital bill payments… With this in mind, Medic
Plus is specially designed to make life simpler for you under what could well be trying
circumstances.

You may avail of loans under the Medic plus Scheme to cover the cost of treatments such as:

• Corneal Implant
• Orthodontic Treatment (fixed tooth implant)
• Ilazirav Technique of lengthening a limb


• Congenital heart surgery
• Angioplasty
• Heart Valve Replacement Surgery
• GIFT (in-vitro technique for child bearing)
• Serious Accidents and Multiple Injuries Surgery
• Hip and Knee Replacement Surgery

Purpose: Loan for individuals to avail specialized expensive medical treatment e.g. coronary
by-pass, Hip and Knee replacement surgery, cochlear implants (surgical) for the hearing
impaired etc.

Eligibility: You qualify to avail of loans under this scheme, if you are:

• An employee of the Government/ a reputed PSU/ a profit making public limited
company, and if you have a minimum, 10 years of service
• A self-employed professional
• A pensioner, who has taken voluntary retirement and is not yet 60 years old
• An agent of Insurance/ KVP/ Mutual Funds etc. with a minimum annual income of
Rs.3 lack
• An employee/ a pensioner with a minimum income of Rs.10, 000 per month or if you
are a neither, a minimum income of RS. 3 lacks per annum.
Note: If the person being treated is a minor, the loan may be granted to a parent.

The loan amounts range from a minimum of Rs.100, 000/- to a maximum of 12 months NMI
(when it concerns salaried individuals and pensioners) or a 1-year net annual income (when it
comes to persons other than salaried individuals and pensioners), subject, to the following
ceilings:

• For Employees and Professionals: Rs.2.0 lacks
• For Pensioners and Agents: Rs.1.0 lack

Once sanctioned, the loan is disbursed by the issuance of a draft/ banker's cheque, favoring
the hospital, where the treatment is being undertaken or where it's proposed to be undertaken.


Margin, Interest and Security
20% of the total cost of treatment and 0.75% above SBAR i.e.13.100% p.a. As per bank's
extant instructions.

Repayment Period and Processing Fee (One time):
You may comfortably repay your loan over a maximum - 60 Equated Monthly Installments
0.100% of the loan amount. Authorized branches are pleased to inform customers that
currently, The Medic plus Scheme is being offered at:

• All computerized SBI branches in identified cities
• All SBI branches, in metro/ urban centers, having "P" divisions
• All SBI Personal Banking Branches

Processing Fee: 0.100% of the entire loan amount, If the applicant already maintain a regular
Housing Loan Account with us the processing fee is waived.

List of Diseases

• Corneal implant
• Orthodontic treatment - fixed tooth implant
• Ilazirav technique of lengthening a limb
• Angioplasty
• Congenital heart surgery
• Heart Valve replacement surgery



OBJECTIVES OF THE STUDY

 To Know The Customer Preference Towards Different Products Of SBI.

 To Know the Perception of Customers towards SBI’s Personal Banking Products.

 To know the awareness level of customers towards SBI’s facilities.



METHODOLOGY

Sample Unit:

• Govt.Employees, Lawyers, Doctors, Engineers, Business People.

Sample size:

• Samples of 100 customers of the bank were chosen for the purpose of study.

Sampling method: Random Sampling Method

• From the large number of account holder’s of the bank, 100 customers were selected

randomly from the bank’s database were considered for the study.

Data Collection Method
To fulfill the objectives of my study, I have taken both into considerations viz primary
& secondary data.

Primary data: Primary data has been collected through personal interview by direct contact
method. The method, which was adopted to collect the information, is ‘Personal Interview’
method. Personal interview and discussion was made with manager and other personnel in
the organization for this purpose.

Secondary data: The data is collected from the Internet, Textbooks.

The various sources that were used for the collection of secondary data are

o Websites – www.SBI.com
o www.google.com

Measuring tools

• For this purpose measurement technique used for survey is questionnaire to collect

information from the respondents. Having collected the information, the information

was represented by using statistical tools like bar charts.



ANALYSIS OF THE STUDY

1. Do you have an account with SBI bank?

PARTICULARS FREQUENCY PERCENTAGE

A.YES 80 80

B. NO 20 20

TOTAL 100 100

80

70

60

50
PERCENTAGE

40
80

30

20

10
20

0
A.YES B. NO
PARTICULARS

INTERPRETATION:

Among 100 respondents 80 are SBI Customers and have different accounts and have
transactions in SBI Bank.


2. (I), which are the Personal Banking products you deal with SBI (Savings Account).


A.YES 80 80

B.NO 20 20

TOTAL 100 100

80

70

60

50
PERCENTAGE

40
80

30

20

10
20

0
A.YES B. NO
PARTICULARS

INTERPRETATION:

80% of the customers have got savings account in SBI Bank and remaining 20% of them use
other accounts.

2. (II), which are the Personal Banking products you deal with SBI (Fixed Deposit Account).




A.YES 23 23

B.NO 77 77

TOTAL 100 100

80

70
PERCENTAGE

60

50

40 77

30

20
23

10

0
A.YES B. NO

PARTICULARS

INTERPRETATION:

23% of the respondents have deposits in Fixed Deposits. There are fewer respondents in case
of fixed deposit because it is kept for long time, which will be fixed.

2. (III), which are the Personal Banking products you deal with SBI (Home Loan).




A.YES 14 14

B.NO 86 86

TOTAL 100 100

90

80

70

60
PERCENTAGE

50
86
40

30

20

10
14

0
A.YES B. NO

PARTICULARS

INTERPRETATION:

Only 14% of the respondents have borrowed for Loan for Construction of Home, i.e. Home
Loan.

2 (IV) which are the Personal Banking products you deal with SBI (Education Loan)



A.YES 2 2

B.NO 98 98

TOTAL 100 100

100
PERCENTAGE

90

80

70

60

50
98
40

30

20

10
2

0
A.YES B. NO

PARTICULARS

INTERPRETATION:

Few of them i.e. 2% have taken education loan in SBI Bank and remaining have either
deposited or borrowed loan for some other purpose.

2. (V), which is the Personal Banking products you deal with SBI (Debit Card [ATM
Card])



A.YES 71 71

B.NO 29 29

TOTAL 100 100

80
PERCENTAGE

70

60

50

40
71

30

20
29

10

0
A.YES B. NO

PARTICULARS

INTERPRETATION:

There are 71% of the customer who are using Debit cards and 29% of them don’t use Debit
card.

2. (VI). Which are the Personal Banking products you deal with SBI (Credit Card).




A.YES 24 24

B.NO 76 76

TOTAL 100 100

80

70

60

50

40
76
PERCENTAGE

30

20
24

10

0
A.YES B. NO

PARTICULARS

INTERPRETATION:

There are 24% of the customer who are using Credit cards and 76% of them don’t use other
cards.

2. (VII). Which are the Personal Banking products you deal with SBI (On-line Banking).




Yes 19 19
No 81 81
TOTAL 100 100

90

80

70

60
PERCENTAGE

50
81

40

30

20
19

10

0
A.YES B. NO

PARTICULARS

INTERPRETATION:

There are 19% of the customers who are using On-Line Banking and 81% of them don’t use
On-Line Banking


A project report on awareness level of personal banking products of SBI bank

A project report on awareness level of personal banking products of SBI bank

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