Sbi Sbi Final

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UNIVERSITY OF MUMBAI

PROJECT ON:-
STATE BANK OF INDIA

MASTER OF COMMERCE
(BANKING AND FINANCE)

SEMESTER I
2014-2015

In Partial Fulfillment of the Requirement under Semester Based Credit
And Grading System for Post Graduated (PG)
Programme under Faculty of Commerce

SUBMITTED BY:-
PARSHURAM.BABU.OMKAR
ROLL NO: 44

PROJECT GUIDE:-
PROF. SHRADDHA SHUKLE

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ACKNOWLEDGEMENT

With great pleasure I thank Mrs. SHRADDHA SHUKLE Professor of
K.P.B.HINDUJA college of Commerce for being an inspiration in the
completion of this project. I thank for her invaluable help provided during
the completion of this project. I also thank her for providing me guidance
and numerous suggestions through out entire duration of the project. I am
thankful for invaluable help without which this project would not have
materialized.

I express my deep gratitude to my entire college friend and my family
members whose efforts and creativity helped us in giving the final structure
to the project work.

I am also thankful to all those seen and unseen hands and hands, which have
been of help in the completion of this project work.

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CERTIFICATE

This is certify that Mr. Parshuram.Babu.Omkar of M.Com. Banking &
Finance 1st Semester (2014-2015) has successfully completed the Project on
"STATE BANK OF INDIA".

Under the guidance of Mrs. SHRADDHA SHUKLE

Project Guide ________________________

Course Coordinator ________________________

Internal Examiner ________________________

External Examiner ________________________

Principal ________________________

Date________________

Place: Mumbai

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M.Com (Banking and Finance)

1st SEMESTER

"STATE BANK OF INDIA"

SUBMITTED BY

PARSHURAM.BABU.OMKAR
ROLL NO: 44

5

DECLARATION
I Mr. Parshuram.Babu.Omkar the student of M.com (Banking and Finance), 1st
Semester (2014-2015), hereby declares that I have completed the project on
"STATE BANK OF INDIA"

The information submitted is true and original to the best of my knowledge.

Parshuram.Babu.Omkar

(Signature)

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TABLE OF CONTENTS
SR.NO PARTICULARS PAGE NO.
1 EXECUTIVE SUMMARY. 1
2
RESEARCH METHODOLOGY. 2
3 INTRODUCTION. 4
4 HISTORY OF STATE BANK OF
INDIA.
5
5
DEVELOPMENT OF SBI. 6
6 INTERNATIONAL PRESENCE OF
SBI.
9
7
CORPORATE STRUCTURE OF SBI. 10
8 SBIs TRANSITION FROM MANUAL
BANKING TO CORE BANKING.
11
9 FUNCTIONS OF COMMERCIAL
BANKS.
12
10
SERVICES OFFERED BY SBI. 16
11 SBI DEPOSIT PRODUCTS AND
MARKET SEGMENTATION OF
ADVANCES.
24
12 SBIs TECHNOLOGY BASED
PRODUCTS AND SERVICES.
36

7

13 BANKER CUSTOMER
RELATIONSHIP
44
14
FINANCIAL QUOTE OF SBI 45
15
FINANCIAL PERFORMANCE 46
16
CORE OPERATIONS 49
17
MARKETING MIX STRATEGIES 50
18
FINANCIAL INCLUSIONS OF SBI 54
19 PERSONAL INTERVIEW OF SBI
MANAGER
56
20
CONCLUSION AND SUGGESTIONS 58
21
ANNEXURE OF PUBLIC SURVEY 59
22
FIELD VISIT TO SBI BANK 61
23
BIBLIOGRAPHY 65

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STATE BANK OF INDIA

Source: Google Images

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INTRODUCTION:
State Bank of India (SBI) is a multinational banking and financial services company based
in India. It is a government-owned corporation with its headquarters in Mumbai,
Maharashtra. As of December 2014, it had assets of US$388 billion and 17,000 branches,
including 190 foreign offices, making it the largest banking and financial services company
in India by assets.
State Bank of India is one of the Big Four banks of India, along with ICICI Bank, Punjab
National Bank and HDFC Bank.
The bank traces its ancestry to British India, through the Imperial Bank of India, to the
founding, in 1806, of the Bank of Calcutta, making it the oldest commercial bank in
the Indian Subcontinent. Bank of Madras merged into the other two "presidency banks" in
British India, Bank of Calcutta and Bank of Bombay to form the Imperial Bank of India,
which in turn became the State Bank of India. Government of India owned the Imperial Bank
of India in 1955, with Reserve Bank of India (India's Central Bank) taking a 60% stake, and
renamed it the State Bank of India. In 2008, the government took over the stake held by the
Reserve Bank of India.

HISTORY:
The roots of the State Bank of India lie in the first decade of the 18
th
century, when the Bank
of Calcutta, later renamed the Bank of Bengal, was established on 2
nd
June 1806. The Bank
of Bengal was one of the Three Presidency banks, the other two being the Bank of Bombay

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and the Bank of Madras. All the 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
th
January, 1921
and the re-organized 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 State Bank of India Act of 1955, the Reserve Bank of India,
which is Indias Central Bank, acquired a controlling interest in the Imperial Bank of India.
On 1
st
July 1955, the Imperial Bank of India became the State Bank of India. In 2008, the
Government of India acquired the Reserve Bank of Indias Stake in SBI so as to remove any
conflict of interest because the RBI is the countrys banking regulatory authority. In 1959,
Government of India 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. SBI was the acquirer as its affiliate,
the State Bank of Travancore, already had an extensive network in Kerala.
The State Bank of India and all its associate banks are identified by the same blue
keyhole logo. The State Bank of India word mark usually has one standard typeface, but also
utilizes other typefaces.
DEVELOPMENTS:
1955:
On 1
st
July, State Bank of India was constituted under the State Bank of India Act 1955, for
the purpose of taking over the undertaking and business of Imperial Bank of India. The
Imperial Bank of India was founded in 1921 under the Imperial Bank of India Act 1920. The
bank transacts general banking business of every description including foreign exchange,
merchant banking and mutual funds.
1959:
In September, State Bank of India (Subsidiary Bank) Act was passed. In October , State Bank
of Hyderabad became the first subsidiary of SBI.
1960:
During this period, State Bank of Jaipur, State Bank of Bikaner, State Bank of Indore, State
Bank of Travancore, State Bank of Mysore, State Bank of Patiala and State Bank of
Saurashtra became subsidiaries of SBI.
1969:

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On 8
th
November, the Bank of Behar was amalgamated.
1972:
A merchant banking division was set up in the central office to cater to promotional needs of
the corporate sector.
1977:
During the year, the bank introduced the Perennial Pension Plan Scheme.
1983:
SBI launched self-employment scheme for self-employment to educated unemployed youths.
1984:
The bank provided need-based rehabilitation assistance to large and medium sick industrial
units.
1986:
On 1
st
August, a new subsidiary named SBI Capital Market was functioning independently. It
took up leasing business and certain other new services.

1987:
Up to the end of the year, the bank had sponsored 30 Regional Rural banks covering 66
backward and under-banked districts in the country.
1988:
On 20
th
September, the bank inaugurated SBINET, an integrated communication project
aimed at improving customer service, operational efficiency and administrative convenience.
1990:
During Kharif 1990, the bank introduced an agricultural credit card, known as SBI Green
Card to give greater liquidity and flexibility to farmers in procuring agricultural inputs. As on
31
st
March, SBIMF had over 3,40,000 Indian investors and about 475 crores by way of
investible domestic funds.
1991:
During February, the bank set up a new subsidiary called the SBI Factors and Commercial
Services Pvt. Ltd. for rendering factoring services to the industrial and commercial units in
the Western India.

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1999:
The State Bank of India (SBI) proposed to take up the life insurance and general insurance
business. SBI proposed to introduce a value added service to the cardholders whereby the
credit card could also be used as an ATM card.
2000:
The bank was embarked upon the expansion of its ATM Network in the twin cities of
Hyderabad and Secunderabad. The bank had become the First Government Owned Financial
Institution.
SBI had become the first public sector bank to offer fixed rate home loans. It had also
incorporated a subsidiary called SBI Life Insurance Company Ltd. for doing life insurance
business. SBI installed 10 more ATMs in the north-eastern region in addition to the one
already commissioned at Guwahati. It also launched 3 more ATMs in Bangalore.
2002:
SBI and ICICI were among the Top 100 banks in Asia as per the study by Asian Banker
Journal.

2003:
SBI join hands with LIC to identify log term investment proposals for LIC. It launched its
First Mobile ATM for increasing the banking convenience of its customers.
2005:
SBI opened branch at Vadakara. It also opened its First branch at Lakshadweep Island at
Kavaratti.
2007:
The State Bank of India became the First Foreign Bank to set up a branch in the Israels
Diamond Exchange.
2010:
The State Bank of India acquired State Bank of Indore.
2012:
SBI planned to cut the processing and conversion fee for home loans.

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2013:
Indias Leading Public Sector lender the State Bank of India was stepping up efforts to
expand its presence in the worlds second biggest economy with the lender set to launch its
second branch in China.
2014:
SBI Youth for India is a fellowship programme initiated, funded and managed by the State
Bank of India in partnership with reputed NGOs. It provides a framework for Indias best
young minds to join hands with rural communities, empathise with their struggles and
connect with their aspirations.

INTERNATIONAL PRESENCE:
As of 28 June 2014, 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.
SBI Sri Lanka, Oldest Bank in Sri Lanka now has three branches located
in Colombo, Kandy and Jaffna. The 3rd branch was opened in Jaffna, Northern Province on
09th September 2013. On 1st July 2014 SBI Sri Lanka celebrated their 150th year presence in
Sri Lanka.

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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.
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 Bank owning 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 in Tianjin.
In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquire
for US$8 million in October 2005.

CORPORATE STRUCTURE:
State Bank of India with more than 14,097 offices and branches in India has a well defined
and decentralized organizational structure. The State Bank of India is headed by a Chairman
and four Managing Directors. While the Chairman is the Executive Head and each Managing
Director heads a Banking Group/ Entity within the Bank. The organizational structure can be
understood by the help of a chart which is as follows:

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MD: Managing Director
DMD: Deputy Managing Director
GE: General Executive
CGM: Chief General Manager
CVO: Chief Vigilance Officer
CFO: Chief Financial Officer
CAG: Comptroller Accountant General

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SBIs TRANSITION FROM MANUAL BANKING TO CORE BANKING:
SBI was one of the first banks globally to use the IBM 1401 mainframe for interoffice
transactions and reconciliation, back in the early 1960s. In 1970s, Data Processing Centers
were set up by the SBI in the Local head offices.
With the introduction of Desktop Computers in 1982, SBI upgraded the Data Processing
Centers at Local Head Offices to mini computers and introduced ALPMs in branches.
Branch computerization started in the 80s and 90s, and a clear cut IT strategy was put in
place in the late 90s. It started with local area network and branch automation, along with a
massive inter branch networking project to connect all the branches.
The Bank acquired Bankmaster software in February 1992 and Backbay Reclamation
branch at Mumbai was the first branch to be fully computerized with Bankmaster Software
Application.
Between 1992 and 31
st
March 2003, 3701 branches were computerized. The drive was taken
to fully computerize all the branches.
Meanwhile, SBI rolled out Core Banking Solution and implemented CBS at the first Pilot
Branch (PBB, Hiranandhani) in August 2003. SBI along with associate banks completely
migrated to CBS platform in 2008.
With the roll out of Networking of branches, named as SBI connect, many more IT projects
were also put right or rolled out. ATM, Internet Banking, Mobile Banking and Payment
solutions transformed SBI into a tech savvy bank.

FUNCTIONS OF COMMERCIAL BANKS:

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The functions of commercial banks are divided into two categories:
Primary functions
Secondary functions including agency functions.

Primary Functions:
The primary functions of the commercial banks include the following:
A. Acceptance of Deposits

(a) Fixed Deposits:
The deposits can be withdrawn only after expiry of certain period say 3 years, 5 years or 10
years. The banker allows a higher rate of interest depending upon the amount and period of
time. Previously the rates of interest payable on fixed deposits were determined by Reserve
Bank.
(b) Recurring Deposits:
In recurring deposit, the customer opens an account and deposit a certain sum of money every
month. After a certain period, say 1 year or 3 years or 5 years, the accumulated amount along
with interest is paid to the customer. It is very helpful to the middle and poor sections of the
people. The interest paid on such deposits is generally on cumulative basis. This deposit
system is a useful mechanism for regular savers of money.
(c) Savings Deposits:
The savings deposit promotes thrift among people. The savings deposits can only be held by
individuals and non-profit institutions. The rate of interest paid on savings deposits is lower
than that of time deposits. The savings account holder gets the advantage of liquidity (as in
current a/c) and small income in the form of interests.

(d) Current Account Deposits:
These accounts are maintained by the people who need to have a liquid balance. Current
account offers high liquidity. No interest is paid on current deposits and there are no

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restrictions on withdrawals from the current account. These accounts are generally in the case
of business firms, institutions and co-operative bodies.
B. Advancing of Loans:

The commercial banks provide loans and advances in various forms. They are given below:
1. Overdraft:
This facility is given to holders of current accounts only. This is an arrangement with the
bankers thereby the customer is allowed to draw money over and above the balance in his/her
account. It is a short-term temporary fund facility from bank and the bank will charge interest
over the amount overdrawn. This facility is generally available to business firms and
companies.
2. Cash Credit:
Cash credit is a form of working capital credit given to the business firms. The customer can
operate that account within the sanctioned limit as and when required. It is made against
security of goods, personal security etc. On the basis of operation, the period of credit facility
may be extended further. Bank charges interest only on the amount utilized and not on total
amount sanctioned or credited to the account.
3. Discounting of Bills:
Discounting of Bills may be another form of bank credit. The bank may purchase inland and
foreign bills before these are due for payment by the drawer debtors, at discounted values,
i.e., values a little lower than the face values. The Banker's discount is generally the interest
on the full amount for the unexpired period of the bill.
4. Loans and Advances:
It includes both demand and term loans, direct loans and advances given to all type of
customers mainly to businessmen and investors against personal security or goods of
movable or immovable in nature. The loan amount is paid in cash or by credit to customer

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account which the customer can draw at any time. The interest is charged for the full amount
whether he withdraws the money from his account or not.
Secondary Functions:
The secondary functions of the banks consist of agency functions and general utility
functions.
A. Agency Functions:
Agency functions include the following:
(1) Collection of cheques, dividends, and interests:
As an agent the bank collects cheques, drafts, promissory notes, interest, dividends etc., on
behalf of its customers and credit the amounts to their accounts.
(2) Payment of rent, insurance premiums:
The bank makes the payments such as rent, insurance premiums, subscriptions, on standing
instructions until further notice. Till the order is revoked, the bank will continue to make such
payments regularly by debiting the customer's account.
(3) Dealing in foreign exchange:
As an agent the commercial banks purchase and sell foreign exchange as well for customers
as per RBI Exchange Control Regulations.
(4) Purchase and sale of securities:
Commercial banks undertake the purchase and sale of different securities such as shares,
debentures, bonds etc., on behalf of their customers. They run a separate 'Portfolio
Management Scheme' for their big customers.
(5) Act as trustee, executor, attorney, etc:
The banks act as executors of Will, trustees and attorneys. It is safe to appoint a bank as a
trustee than to appoint an individual. Acting as attorneys of their customers, they receive
payments and sign transfer deeds of the properties of their customers.

B. General Utility Services:
The General utility services include the following:
(1) Safety Locker facility:

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Safe keeping of important documents, valuables like jewels are one of the oldest services
provided by commercial banks. 'Lockers' are small receptacles which are fitted in steel racks
and kept inside strong rooms known as vaults. These lockers are available on half-yearly or
annual rental basis. The bank merely provides lockers and the key but the valuables are
always under the control of its users.
(3) Issue "Travellers Cheques":
Banks issue travellers cheques to help carry money safely while travelling within India or
abroad. Thus, the customers can travel without fear, theft or loss of money.
(4) Letters of Credit:
Letter of Credit is a payment document provided by the buyer's banker in favour of seller.
This document guarantees payment to the seller upon production of document mentioned in
the Letter of Credit evidencing dispatch of goods to the buyer.
(5) ATM facilities:
The banks today have ATM facilities. Under this system the customers can withdraw their
money easily and quickly and 24 hours a day. This is also known as 'Any Time Money'.
Customers under this system can withdraw funds i.e., currency notes with a help of certain
magnetic card issued by the bank and similarly deposit cash/cheque for credit to account.

SERVICES OFFERED BY SBI:
1. E-TICKETING:

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You can book your railway, air and bus tickets online through OnlineSBI.
Service charges @ Rs.10/- per transaction shall be levied in addition to the cost of the ticket.
Cancellation of E-ticket can be done by logging on to IRCTC's site; refund amount will be
credited to your account directly within 2-3 days. For cancellation of i-ticket, you shall be
required to submit your ticket at a computerized counter of Railways and on cancellation, the
amount shall be credited back to your account.
2. SBI E-TAX:

You can pay your taxes online through SBI E-Tax. This facility enables you to pay TDS,
Income tax, Indirect tax, Corporation tax, Wealth tax, Estate Duty and Fringe Benefits tax.
Click the e-Tax link in the home page. You are displayed a page with two links Direct Tax
and Indirect Tax.

The Indirect Tax link is used to make Central Excise and Service Tax payments to Central
Board of Excise and Customs. The online payment feature facilitates anytime, anywhere
payment and an instant E-Receipt is generated once the transaction is complete. The Indirect
Tax payment facility is available to Registered Central Excise/Service Tax Assessee who
possesses the 15 digit PAN based Assessee Code. You can make CBEC payments using the
Indirect Taxes link available in the Payments/Transfers tab.

3. BILL PAYMENT:

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A simple and convenient service for viewing and paying your bills online.
a) No more late payments
b) No more queues
c) No more hassles of depositing cheques
Using the bill payment you can view and Pay various bills online, directly from your SBI
account. You can pay telephone, electricity, insurance, credit cards and other bills from the
comfort of your house or office, 24 hours a day, 365 days a year.
The e-PAY service is available in various cities across the country and you can now make
payments to several billers in your region.
4. DEMAND DRAFT:

The Internet Banking application enables you to register demand drafts requests online. You
can get a demand draft from any of your Accounts. You can set limits for demand drafts
issued from your accounts or use the bank specified limit for demand drafts. You can opt to
collect the draft in person at your branch, quoting a reference to the transaction. A printed
advice can also be obtained from the site for your record.

5. CHEQUE BOOK REQUEST:

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You can request for a cheque book online. Cheque book can be requested for any of your
Savings, Current, Cash Credit, and Over Draft accounts. You can opt for cheque books with
25, 50 or 100 cheque leaves. You can either collect it from branch or request your branch to
send it by post or courier. You can opt to get the cheque book delivered at your registered
address or you can provide an alternate address. Cheque books will be dispatched within 3
working days from the date of request.
6. ACCOUNT OPENING REQUEST:
OnlineSBI enables you to open a new account online. You can apply for a new account only
in branches where you already have accounts. You should have an INB-enabled account with
transaction right in the branch. Funds in an existing account are used to open the new
account. You can open Savings, Current, Term Deposit and Recurring Deposit accounts of
Residents, NRO and NRE types.
7. THIRD PARTY TRANSFER:
You can transfer funds to your trusted third parties by adding them as third party accounts.
The beneficiary account should be any branch SBI.Transfer is instant.You can do any number
of Transactions in a day for amount aggregating Rs.5 lakhs.

To transfer funds to third party having account in SBI,you need to add and approve a third
party, you need to register your mobile number in personel details link under profile section.
You will receive a One Time SMS password on your mobile phone to approve a third party.
If you do not have a mobile number, third party approval will be handled by your branch.
Only after approval of third party, you will be able to transfer funds to the third party. You
can set limits for third party transactions made from your accounts or even set limits for
individual third parties.

8. FUNDS TRANSFER:

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The Funds Transfer facility enables you to transfer funds within your accounts in the same
branch or other branches. To make a funds transfer, you should be an active Internet Banking
user with transaction rights.

Daily limit for Funds Transfer to own Accounts:
Between Accounts in the same branch: Rs.10 Lacs.
Between Accounts across branches: Rs.5 Lacs.

Daily limit for Funds Transfer to PPF Accounts in the same branch or across
branches: Rs.1,00,000. This is subject to a ceiling of Rs.1,00,000, by a maximum 12 deposits,
during the Financial Year, for the Principal Amount.
9. NOMINATION FACILITIES:
1. Nomination facility is governed by provisions of Banking Regulation Act, 1949- Section
45ZA for deposit accounts, 45ZC for Safe Custody Accounts and 45ZE for Safe Deposit
Lockers.
2. Nomination facility is available for all deposit accounts, articles in safe custody and safe
deposit vaults.
3. Nomination is available for accounts opened in individual capacity only, i.e. not for
accounts opened in representative capacity.
4. Nomination can be done in favour of one person only. However, nomination in favour of
more than one person is permissible in jointly operated locker accounts with common
consent.
5. Nomination can be made, cancelled or varied by the account holder anytime during the life
time.
6. Nomination can be made in favour of a minor also. During the period the minor does not
attain majority, the natural person appointed by the account holder will receive the amount on
the minors behalf.
7. For the existing accounts where nomination is not made, the account holder/s can do so by
filling up form available with the branches.
8. The right of nominee to receive payment from the Bank arises only after the death of the
depositor in single account and death of all depositors in case of joint accounts.
9. Customers (new as well as existing) are advised to avail nomination facility, if they have
not availed so far. In case the depositor(s) do(es) not wish to make nomination, the same
should be recorded on the account opening form by the depositor(s) with their full signature.
10. CHEQUE COLLECTIONS:

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(A) Immediate Credit of Outstation/local cheques:
Outstation Cheques:
Branches will, on their own accord, afford immediate credit of outstation cheques of other
banks up to and inclusive of Rs.20, 000/- (Rupees twenty thousand only) tendered for
collection by their customers. For the purpose of this Policy, a satisfactorily conducted
account shall be one which has been:-
i) Opened at least six months earlier and is fully complying with the KYC documentation
requirements.
ii) Is neither dormant nor inoperative.
iii) Where branch has not noticed any irregular dealings/ suspicious transactions in the last 6
months.
v) Where no adverse features attached to the account/account holders has been brought to the
notice of the Bank.
vi) Where no cheques/ instruments for which immediate credit was afforded returned unpaid
for financial reason.
The facility will be available to all individual deposit account holders, without making a
distinction about the type of their accounts i.e. Savings Bank/Current Account etc. It will also
be available at all branches/extension counters of the Bank.
Local Cheques:
Negotiation of local cheques/instruments will not be encouraged. However, Branch Managers
may use their discretion in exceptional circumstances (business exigencies) to permit drawls
against uncleared effects up to Rs. 20,000/- (Rupees twenty thousand only), for deposit
accounts on recovery of collection charges of Rs. 100/- per instrument.
Cheques returned unpaid:
If a cheque/instrument for which immediate credit has been afforded is returned unpaid, Bank
shall recover interest at clean overdraft rate for the period Bank remained out of funds and
also cheque return charges subject to the following :-
a) Bank will charge interest from the date of credit of proceeds of the cheque in the account
till reimbursement/realisation of the amount to/by the Bank.
b) Where the cheque is credited to a Savings Bank account, such credits will not be reckoned
for interest purposes, if the cheque is 13 returned unpaid.
c) If proceeds are credited in an overdraft/loan account, interest would be recovered at
applicable rate/clean overdraft rate, whichever is higher, on the amount of returned
cheque/instrument.

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11. REMITTANCE FACILITIES:
i. Customers can make local payment through Bankers Cheques and remit funds from one
centre to another through drafts, telegraphic transfers, electronic funds transfer
(RTGS,EFT,ECS etc) at specified service charges (exchange).
ii. Drafts are issued on our branches. They are issued on the branches of Associate Banks at
centres where we do not have any branch.
iii. The issue and payment of Bankers cheques and drafts in cash across the counter is subject
to Income Tax provisions and RBI guidelines against money laundering activities. Issue of
these instruments of Rs. 50,000/- and above is not permitted against cash but only through
debit to customers account or against cheques/other instruments tendered by the purchaser.
iv. Bankers cheques / drafts for an amount of Rs.50,000/- and over will not be paid in cash,
but only for credit of the payees account or to his banker.
v. Drafts of Rs.50,000/- and above are required to have signatures of two authorised officials.
Before taking delivery of the drafts, please verify that the draft is complete in all respects
including signature of the official(s) along with their specimen signature numbers at the place
provided for.
vi. Bankers cheques and drafts are valid for 3 and 6 months respectively and can be
revalidated by issuing branches on written request of the purchasers. The drafts can be
revalidated by the payee(s) if they are identified as the holder in due course. The drafts can be
revalidated only once within one year from the date of issue. After one year of the draft, they
are to be cancelled at the issuing branch, and a fresh draft obtained after paying the requisite
service charges.
vii. In respect of lost drafts, duplicate drafts for amounts above Rs 10000/-(in cases where
there is no reason to doubt the bonafides of the applicant) shall be issued by the issuing
branches on receipt of confirmation of non payment from the drawee branch and on
execution of stamped letter of indemnity with two sureties good for the amount involved.
viii. For issue of duplicate drafts up to Rs.10, 000/- requirement of the relative non-payment
certificate from the other branch is waived. For issue of duplicate drafts below Rs.1,000/-,
only indemnity letter will be necessary. The customer should inform the issuing branch
promptly of loss of demand draft giving full particulars thereof in order to prevent misuse
thereof.
ix. The Bank may not insist on production of sureties for issue of duplicate demand drafts for
amounts up to Rs 50, 000/- if the applicant/purchaser after complying KYC norms is
maintaining a satisfactorily conducted account with the issuing branch for a minimum period
of six months as on the date of issue of original draft and he/she is considered good for the
amount involved.

27

x. The bank will issue duplicate demand draft to the customer within 14 days from the date of
receipt of request. For delay in issuing duplicate draft beyond the above stipulated period, the
banks will pay interest at the rate applicable for fixed deposit of corresponding maturity in
order to compensate the customer for such delay.
xi. Where the bank is found to have committed an error in non payment of a draft/remittance
issued by it to a holder in due course, the customer will be compensated with interest at
SBAR for the number of days the instrument remains unpaid from the date of its first
presentment.
12. SAFE DEPOSIT LOCKER:
For the safety of your valuables we offer our customers safe deposit vault or locker facilities
at a large number of our branches. There is a nominal annual charge, which depends on the
size of the locker and the centre in which the branch is located.

13. E-RAIL:
Book your Railways Ticket Online.
The facility has been launched with effect from 1
st
September 2003 in association with
IRCTC. The scheme facilitates Booking of Railways Ticket Online. All Internet banking
customers can use the facility.
14. OTHER SCHEMES AND FACILITIES:
i. Various other deposit schemes to meet the requirements of individual depositors, like Multi
Option Deposit Scheme etc. are also available with the branches of the Bank. Detailed
information on these schemes is available from our branches.
ii. Deposit Schemes for Senior Citizens: The fixed deposits of senior citizens (60 years and
over)attract additional interest of 0.50% for maturity period of one year and above up to 5
years and 0.25% for maturity period of 5 years. These are subject to change.
iii. Articles in safe custody: Articles such as shares, securities etc. can be kept in safe custody
of the Bank. The terms and conditions and charges for safe custody are available on request
at branches and our helplines.
iv. Exchange of soiled/mutilated currency notes: All the branches of the Bank will exchange
freely soiled/slightly mutilated currency notes and certain other types of mutilated currency
notes of all denominations. The Bank's currency chest branches will exchange all categories
of mutilated currency notes. Currency exchange facility is offered to the Bank's customers
and others. The Bank follows RBI guidelines in this respect. RBI has permitted the banks to
exchange mutilated currency notes which are genuine and where mutilations are such as not
to cause suspicion or fraud.
v. Safe Deposit Lockers: This ancillary service available at select branches is by hiring a
locker of various sizes by an individual, firms, limited companies etc. for a minimum period

28

of one year for which rent is payable in advance. Nomination facility is available to the hirer.
Terms and conditions and annual hire charges can be obtained from the branches. The hire
charges are also available on clicking the link Service Charges and fees on the home page of
the Banks website.
vi. Foreign Exchange Services and Cross-Border Payments: Details of the exchange rate and
charges which will apply to foreign exchange transactions are provided at select branches.
Cross border payments will be made subject to the provisions of the applicable Regulations
about foreign exchange.
15. MULTI CITY CHEQUES:
A Multi-City Cheque (MCC) is one that can be written by the customer in favour of his client
and is payable at par at all branches of the Bank. These are issued as Order Cheque . MCC
can be issued in cheque operated accounts (SB and Current. The MCC facility is to be used
only for genuine transactions / bonafide remittances. No cash payments will be made to third
parties at other branches.
The upper limit for issue of MCCs is Rs.5 lacs. The issue charges for MCC are Rs. 2 per
cheque leaf and will be debited from the account at the time of issue of the cheque book. 50
Cheque leaves are provided without any charge to each account. There are no transaction
charges.

SBIs PRODUCTS:
DEPOSIT PRODUCTS (DOMESTIC):
1. SAVINGS BANK ACCOUNT:

29

1. No Minimum Balance requirement.
2. Personal Accident Insurance of Rs. 2 lacs (w.e.f. 01/08/2013) available at an annual
Premium of Rs. 100/-.
3. Earn Interest at 4.00% p.a.
4. Transferability of accounts to any SBI Branch without changing the account number.
5. Multicity cheques available.
6. Internet Banking, Mobile Banking, Kiosk Banking available.
7. Safe Deposit lockers available.
8. Interest is calculated on a daily balance.
9. Nomination facility is available and recommended.
10. Passbook issued free of charge.
11. 50 Multicity cheque leaves free in the first instance thereafter Rs. 2/- is charged for each
subsequent leaf for Savings Bank account having QAB as on previous quarter end Rs.
25000/- and above. 20 Multicity cheque leaves free in the first instance thereafter Rs. 3/- is
charged for each subsequent leaf for Savings Bank account having QAB as on previous
quarter end below Rs. 25000/-. Emergency Cheque request (10 leaves set): Rs 3/- per leaf.
12. Multiple variants of ATM-cum-Debit Cards available.
13. Inter Core charges NIL for transfer transactions.
2. CURRENT ACCOUNT:
1. Personal Accident Insurance of Rs. 2 lacs (w.e.f. 01/08/2013) available at an annual
Premium of Rs. 100/-.
2. Internet Banking.
3. Standing instructions.
4. Low minimum balance requirement.
5. Overdraft facility available based on credit history.
6. Free ATM / Debit Card in the 1st year; charge from 2nd year onwards.
7. No restrictions on number of Payments / Withdrawals.
8. No interest paid on Deposits.
9. Transfer of account to any branch possible.

30

10. Account maintenance charge applicable.
11. No Passbook is issued but monthly Statement of account is issued.
12. Nomination facility available.
13. KYC Norms as applicable to be followed for opening of Account.
14. Multicity cheque facility available.
3. SAVINGS PLUS ACCOUNT:
Savings Plus Account is a Savings Bank Account linked to MODS, wherein surplus fund
above a threshold limit from the Savings Bank Account is transferred automatically to Term
Deposits opened in multiples of Rs. 1000.
Any surplus funds in the account exceeding the threshold limit (to be set by the customer),
for a minimum amount of Rs.10,000/- and in multiple of Rs.1000/- in any one instance, are
transferred as Term Deposit and earns interest as applicable to Term Deposits.
Account holder has the flexibility to choose the period of deposit from 1 year to 5 years and
to set any threshold limit of Rs.5,000/- or above.
Payments in excess of available balance in the Savings bank Account can be made by
breaking MODs Last in First Out.
4. YUVA SB ACCOUNT:
It is a special Savings Bank product for the youths.

Eligibility:
Residents, above 18 years of age and upto 30 years of age, at the time of entry. Account to
continue as it is, even if the account holder attains the age of 30 years.

ATM- cum-Debit card facility:
Yuva Card (Visa), which have many concessionary/ complementary facilities, will be issued
free of cost.

Remittance/ collection:
One draft / Bankers Cheque will be issued free, per calendar month, favouring Educational
Institutions or for applying jobs.
Free collection of one cheque, with a ceiling of Rs. 20,000/- per month.

Other Facilities:
As applicable to Normal Savings Bank Account.
5. PREMIUM SAVINGS ACCOUNT:
Premium Savings Account provides an enriched version of Savings Bank account consisting
of various concessions and add-ons.
Auto-sweep facility

31

Auto-sweep facility will be operative at monthly intervals.
Term Deposits (TD)/ Special Term Deposits (STD) would be created under the MOD
scheme, in units of Rs.1,000/-, subject to a minimum amount of Rs. 10,000/-.
Unitised break-up available for withdrawing the deposits conveniently.
TD/STD shall be opened for a period of 1 year to 5 years.
Other Facilities available
i. 50 Multicity cheque leaves free in the first instance thereafter Rs. 2/- is charged for each
subsequent leaf for Savings Bank account having QAB as on previous quarter end Rs.
25000/- and above. 20 Multicity cheque leaves free in the first instance thereafter Rs. 3/- is
charged for each subsequent leaf for Savings Bank account having QAB as on previous
quarter end below Rs. 25000/-. Emergency Cheque request (10 leaves set): Rs 3/- per leaf.
ii. Unlimited number of debits.
iii. ATM-cum-Debit Gold cards (Master/ Visa) will be issued, free of cost.
iv. Internet Banking facility.
v. 50% concession in draft issue charges and cheque collection charges.
vi. Bankers Cheques will be issued free.
vii. No service charges in respect of outward RTGS/ NEFT transactions.
6. TERM DEPOSITS:
Period of deposit from 7 days to 10 years.
Deposit Amount: Minimum: Rs.1000/-, maximum: No limit.
Payment of interest at Monthly/Quarterly/Calendar quarter basis as per your requirement.
Payment of interest on monthly interval will be at discounted rate.
Interest will be paid at the contracted rate irrespective of change in the rate thereafter.
Senior Citizens get 0.25% extra interest rate.
Loans / OD upto 90% of the Principal deposit.

Premature payment:
The penalty for premature withdrawal of deposits below Rs 15 lacs for all tenors will be
0.50% p.a. provided these have remained with the Bank for at least 7 days.

32

Auto renewal is exercised if maturity instructions are not given
Flexibility to convert TDR to STDR and vice versa
Nomination facility available and recommended
TDS at prevalent rate is deducted at source if Form 15G/15H not submitted.
TDS will be deducted when interest paid or
accrued or reinvested per customer, per branch, exceeds Rs. 10,000 in a financial year.
The TDR can be linked to any Savings Bank or Current Account from where you can
withdraw periodical interest. TDS payments, if any, can be made to the Government as and
when it is due from linked account.
7. MULTI OPTION DEPOSIT SCHEME:
These are the Term Deposits but at the time of need for funds, withdrawals can be made in
units of Rs.1,000/- from the Deposits by issuing a cheque from Savings Bank Account or
through overdraft facility from Current account.
Flexibility in period of Term Deposit from 1 year to 5 years.
Minimum amount of Rs. 10,000/- only.
8. RECURRING DEPOSITS:
1. Monthly deposits of Minimum Rs.100/- no maximum.
2. Minimum period 12 months maximum 120 months.
3. Rate of interest as applicable to Banks TDR / STDR for the period of the RD.
4. Loan / Overdraft up to 90% available against the balance in RD account.
5. TDS is not applicable.

9. SBI FLEXI DEPOSIT SCHEME:
A variant of Recurring Deposit with the facility of depositing variable deposit instead of a
fixed instalment.

33

Period of deposit: Minimum - 5 years and Maximum - 7 years
Minimum deposit amount:
Rs. 5,000/- per Financial Year.
Minimum of Rs. 500/- at any one instance.
Deposits can be made anytime during a month and any number of times.
Penalty for default in payment of minimum deposit will be Rs.50/- per Financial Year.
Maximum deposit amount: Rs.50,000/- in a Financial Year.
Rate of interest: As applicable to Term deposits. Interest will be compounded at quarterly
intervals, based on the balance outstanding on the last date of each month.
Tax deduction at source: Interest payable will be subject to TDS.
Premature closure: Allowed.

MARKET SEGMENTATION OF ADVANCES:
The following is the broad classification of advances according to market segments:

34

1. Personal Banking
2. S.M.E(Small and Medium Entrepreneurs)
3. C & I( Commercial And Institutional)
4. Agriculture.
1. PERSONAL BANKING:
(1) HOUSING LOANS:

1. Package of exclusive benefits.
2. Low interest rates. Further, we charge interest on a daily reducing balance!!
3. Low processing charges.
4. No hidden costs or administrative charges.
5. No prepayment penalties. Reduce your interest burden and optimally utilize your surplus
funds by prepaying the loan.
6. Over 15,969 branches nationwide, you can get your Home Loan account parked at a
branch nearest to your present or proposed residence.
SBI Realty:
SBI Realty provides an opportunity to the customer to purchase a plot for construction of
house. The construction of house should commence within 2 years from the date of availment
of SBI Realty Loan.
Customers are also eligible to avail another Home Loan for construction of house on the plot
financed under the SBI Realty with the benefit of running both the loans concurrently.
Loan Amount : Maximum Loan Amount: Rs.10 crores
Repayment Period : Upto 15 years.
SBI Maxgain:

35

An innovative and customer-friendly product enabling the customers to earn optimal yield on
their savings by reducing interest burden on Home Loans, with no extra cost.
The loan is sanctioned as an Overdraft with added flexibility to operate the Home Loan
Account like SB or Current Account. Bank also provides Cheque Book/Net Banking facility
for the purpose.
Minimum Loan Amount: Rs.5 lacs
Maximum Loan Amount: No Cap
Interest Rate: A premium of 0.25% over and above the applicable Home Loan interest rate
for Home Loan > Rs.1 crore is payable.
Home Equity:
Loan for any purpose other than speculative.
Repayment period co-terminus with the underlying Home Loan account.
Upto two Home Equity Loans allowed to exist together.
No prepayment/preclosure penalty.
Eligibility:
All Home Loans with a satisfactory repayment track of at least one year.
Valid mortgage should have been created in favour of the Bank.
Minimum Loan Amount: Rs. 0.50 lacs
Maximum Loan Amount: Rs. 2 crores.
Gram Nivas:
Scheme covers all Rural and Semi-urban centres having population upto 50,000 as per 2001
census.
Maximum Loan Amount: Rs. 5 lacs
Maximum repayment period: 15 years.

Sahayog Niwas:
Under this Self Help Groups with existence of 2 years or more are financed for on lending
housing loans to their members not exceeding Rs 50000 for construction and Rs 25000 for
repairs.

36

(2) EDUCATION LOANS:

SBI Student Loan:
Under this scheme financial assistance is provided to deserving/ meritorious students for
pursuing higher education in India and abroad to an extent of Rs 10 lakhs and Rs 30 lakhs
respectively. The students should undergo the studies in recognized colleges/ universities
only. Margin and collateral security is waived up to Rs 4 lakhs. Loan can be repaid in 5 to 7
years after completion of the course. There is interest concession of 0.50% to girl students.
SBI Scholar:
Under the scheme loans to deserving/ meritorious students for pursuing full time courses in
India in premier and 112 reputed institutes identified by the bank. Under this scheme a
maximum amount of Rs 20 locs without security and Rs 30 lacs with security can be
financed.

SBI Education Plus:
Under this scheme loans are sanctioned to permanent employees having minimum service of
2 years, with age below 45 years, for pursuing courses in distance education mode up to
maximum amount of Rs 1 lac.

(3) CAR LOANS:

37

This scheme is meant for sanction of loans for purchase of loans for purchase of cars either
new or old for those who have independent and permanent source of income and between 21
to 65 years of age. Loan has to be closed before borrower attains 70 years of age. There is no
upper limit of loan for new cars and for used cars the maximum is Rs. 15 lakhs. Loan is
sanctioned on the basis of EMI Ratio and on road cost of the car. Loan is repayable in 7
years.
(4) OTHER LOANS:
Loans against Banks TDR/STDR: Demand Loan or overdraft can be sanctioned
to the customer upto 90% of the value of the TDR/STDR (Principal plus accrued
interest) @ 0.50% above the interest rate paid on the deposit by the bank.

Loans against Shares/Debentures: Loans are sanctioned by selected branches
against shares that are fully paid and listed in BSE 100 index up to a maximum limit
of Rs 20 Lakhs on minimum AA+ by CRISIL or equally by ICRA.

Loans against Life Insurance policies: Loans are sanctioned against surrender
value of Life Insurance policies (LIC or SBI Life Policies). 95% of surrender value of
the policy can be sanctioned after obtaining surrender value of the Life Insurance
policies. Maximum repayment period is 36 months.

Loans against NSCs/KVP/IVP: Loans are sanctioned against NSCs/KVP/IVP to
the extent of 60% of the face value and accrued interest for public and 85% for staff.

Gold Loans: Under the scheme loans are sanctioned against pledge of gold
ornaments to a maximum extent of Rs 10 lakhs. Gold prices are circulated by LHO
every month.

38

Bhyagyarekha loan for women depositors: Bank introduced this scheme garner
regular savings through Recurring Deposit Scheme and grant Demand Loans to
women for general purposes needs. RD a/c holder is eligible to avail this loan after the
RD has run for atleast 12 months. The RD installments should have been paid
regularly. Minimum installment in RD is Rs. 400/- p.m. for 36 months maturity (to
arrive at minimum loan amount of Rs. 10,000/-) and Rs. 200/- p.m. for 60 months
maturity (To arrive at minimum loan amount of Rs. 5,000/-). Loan amount will be
twice the balance outstanding in the RD account, with a minimum of Rs. 5,000/- &
maximum of Rs. 50,000/-. The Loan would be repaid in 24/48 monthly installments.

Pension Loans: Under the scheme loans against pensions can be sanctioned to all
Government/SBI pensioners where accounts are maintained with us and whose age is
not above 72 years for self and 65 years for family pensioners. Under the scheme the
amount of loan that can be sanctioned to self is 12 months net pension subject to a
maximum of Rs 1 lakh and for family pensioner 9 months pension subject to a
maximum of Rs 50,000/-. Under loan to affluent pensioners scheme loan can be
sanctioned up to Rs 3 lakhs for pensioner &Rs 1.50 lakh for family pensioner subject
to the condition that the EMI of the pension loan should not exceed 25% of the
pension drawn by the family pensioners. Under the Jai Jawan Pension loan scheme
loan can be sanctioned upto Rs 2 lakhsn for pensions of armed forces yp to the age of
50.

Xpress Credit: This is a personal loan sanctioned to a maximum extent of Rs 15 lacs
to employees of PSUs, Government organizations, Quasi companies with SB1 and
SB2 ratings etc whose salary accounts are maintained with us. Repayment should be
effected through check off system.
2. S.M.E (Small and Medium Entrepreneurs)

1) Traders Easy Loan: Under the scheme Bank extends hassle free finance to the
borrowers who are engaged in trade and services sector for acquiring fixed assets and
working capital needs. The amount that can be sanctioned under the scheme is
minimum Rs 25,000/- & maximum Rs 5 Crores.

2) Rent Plus: Under this scheme Bank extends finance to owners of
residential/commercial buildings which are rented/to be rented to MNCs/Banks/Large
and Medium size corporates. Against assignment of future rentals to meet borrowers
liquidity mismatch. The amount that can be sanctioned under the scheme is minimum
Rs 50,000/- & maximum Rs 10 Crore.

3) SME Credit Card: Borrowers of Small Scale Industrial Units, Small Retail Traders,
with 2 years satisfactory track record are eligible under the scheme. Can be financed
by means of either Term loan or Cash credit up to a maximum of Rs 10 lakhs.
Eligibility is on the basis of scoring model. The Cash credit is valid for 3 years subject
annual review.

39

4) SME Smart Score: SME units whose credit requirements are between Rs 5 lakhs
and 50 lakhs can be sanctioned under the scheme in the form of either Term Loan or
Cash Credit. While the maximum limit for manufacturing units is Rs 50 lakhs, the
Trade and services sector units can be sanctioned up to an amount of Rs 25 lakhs. The
applicant must obtain a minimum overall score of 60% with a minimum of 50% under
each sub-head like Personal details, Business details and collateral details.

5) SBI Shoppe: Under the scheme individuals, Firms, Partnership firms, etc can be
sanctioned up to Rs 20 lakhs for the purpose of purchasing/repairing/modernization of
shops/show rooms etc and purchases of furniture/fixtures/electrical fittings etc for the
shops.

3. COMMERCIAL & INSTITUTIONAL (C & I) SEGMENT
All loans and advances given to business (business include the activities of
manufacturing, services and trading), other than those classified under SME are classified as
C & I advances. These advances are sanctioned after assessment of the need and the level of
risk involved. These advances are governed by guidelines issued by Credit Policy & Planning
Department of the Bank from time to time.
4. AGRICULTURAL SEGMENT:

1) Kisan Credit Card: This product is meant for farmers to meet short term loan
requirements and Investment credit needs of small value in the nature of farm implements/
equipments etc. and consumption requirements. KCC limits are valid for 5 years. For every
successive years (2
nd
, 3
rd
, 4
th
and 5
th
year), the limit will be stepped up @ 10%. (Short term

40

credit limit sanctioned for 5
th
year will be about 150% of the first year limit allowed to
farmers). Finance is made on the basis of scale of finance fixed by District consultative
committee. All farmers are covered by Personal Accident Insurance scheme up to the age of
70 years. The coverage is Rs 50,000/- per farmer with a premium of Rs 15/- per annum. The
premium is paid in the ratio of 2:1 by the bank and the borrower.
2) Kisan Gold Card: This is General purpose loan for farmers for productive and
consumption purposes. This product cant be used for purchase purposes of tractors &
accessories and for purchase of land and construction of farm shed. Farmers with 2 years
excellent repayment record or farmers who maintained sizeable deposits with our Branches
for last 2 years are eligible under the scheme. Maximum amount that can be sanctioned under
the scheme is Rs 10 lakhs. 20% of the sanctioned amount can be allowed towards
consumption needs.
3) Produce Marketing Loan: This is a short term loan sanctioned to farmers to help them,
avoid distress sale of their farm produce at the time of harvest and to provide them liquidity
to meet immediate needs. Maximum amount that can be sanctioned under this scheme is Rs
10 lakhs. Loan to be repaid within a maximum period of 12 months. The advance is
sanctioned against warehouse receipts issued by Central warehousing corporation, State
Warehousing Corporation, and other private houses.
4) Tractor Finance under Scoring Model: The scheme provides finance for purchase of
new tractors, accessories and implements so as to enable the farmers to improve crop
productivity and to use it for custom hiring. The loan is to be repaid within a maximum
period of 9 years. The assessment process is done through scoring model. SBI TAFE
Nayaroop and SBI Mahindra Vishwas are the schemes meant for financing of second hand/
used tractors, with a maximum limit of Rs 2.50 lakhs. Sanjeevani is the loan for repairs of a
tractor financed by us and the loan is regular. We also finance Power Tillers for farmers or
group of farmers having a minimum of 2 acres of perennially irrigated land.
5) New Tractor Loan Scheme (NTLS): Borrowers with a minimum land holding of 2 acres
can be financed with a maximum repayment period of 5 years with one month moratorium.
Mortgage of land is required to cover 100% of the loan sanctioned. Scheme is available in
selected Branches only.
6) SBI Krishak Utthan Yojna: This scheme provides easy access to short term production
and consumption credit to meet genuine requirements of tenant farmers, share croppers and
oral lessees who do not have recorded land records and where there is no written undertaking/
document available to substantiate raising of crops by the tenant farmer/ share cropper/ oral
lessee. It will help increase their income from agriculture production activities.

41

SBIs TECHNOLOGY BASED PRODUCTS AND SERVICES
1. ATM SERVICES:

State Bank offers you the convenience of over 43,000+ ATMs in India, the largest network in
the country and continuing to expand fast! This means that you can transact free of cost at the
ATMs of State Bank Group (This includes the ATMs of State Bank of India as well as the
Associate Banks - namely, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State
Bank of Mysore, State Bank of Patiala, and State Bank of Travancore) and wholly owned
subsidiary viz. SBI Commercial and International Bank Ltd., using the State Bank ATM-
cum-Debit (Cash Plus) card.
Plastic Money may be distinguished into three different cards:
1. Debit Card : PAY NOW, BUY NOW.
2. Credit Card : BUY NOW, PAY LATER.
3. SMART CARD : PAY NOW, BUY LATER.
Smart Card is an electronic purse, an e-cash card, a standard card with an integrated micro-
processor chip and inboard CPU to store information, examples- Pay Roll card, Gift Card all
of SBI. Developed with latest silicon technology, with pre- programmed memory and
security codes, Credit Cards are other examples of convenient banking. Debit cards are
similar to ATM Card with an additional facility of using them in merchant establishments.
KINDS OF CARDS ACCEPTED AT STATE BANK ATMs
Besides all cards of State Bank of India, State Bank ATM-Cum-Debit Card and State Bank
International ATM-Cum-Debit Cards following cards are also accepted at State Bank ATMs:
1. State Bank Credit Card
2. Cards issued by other banks displaying Maestro, Master Card, Cirrus, VISA and
VISA Electron logos
3. All Debit/ Credit Cards issued by any bank outside India displaying Maestro, Master
Card, Cirrus, VISA and VISA Electron logos.

42

Other Features: ATM cards among other things, facilitate the customer for conducting the
following types of transactions:
Recharge pre-paid mobile phones of almost all companies
Pay MTNL, Mumbai bills through State Bank ATMs
Payment of SBI Credit Card bills
Payment of SBI Life Insurance premium
Pay fees of select colleges
Donate to select Temple Trusts
Registration for Mobile Banking services
Register for SMS alerts
Funds Transfer through ATMs( Card to Card Transfer):
This is a new product available on ATMs of State Bank Group. Card holders can transfer
funds to any cardholder within the State Bank Group through State Bank ATM, subject to a
maximum of Rs 50,000 per transaction. The recipients account will be credited on the next
working day. All Card holders of all branches of State Bank Group can avail the facility.
Transaction Costs/ Customer Charges:
As per RBI guidelines, the following service charges are applicable for using ATMs other
than that of the Card issuer:
Type of Account Service Availed Charge Applicable
Savings Bank A/c Both Financial and Non-
financial transactions per
calendar month:
a) Upto 5 transactions at
other Bank ATMs
b) Above 5 transactions
Financial
Non- financial
Free

Rs 17 per transaction
Rs 6 per transaction
Current A/c and KCC Cash Withdrawal transaction Rs 17 per transaction

Maximum amount of withdrawal at other bank ATMs is Rs10,00 per transaction. Similarly
our group ATMs will also disburse maximum Rs10,00 per withdrawal to other bank
customers.

2. INTERNET BANKING:

43

The Internet banking portal of SBI, enables its retail banking customers to operate their
accounts from anywhere anytime, removing the restrictions imposed by geography and time.
It's a platform that enables the customers to carry out their banking activities from their
desktop, aided by the power and convenience of the Internet. Using Internet banking services,
you can do the following normal banking transactions online:
Funds transfer between own accounts.
Third party transfers to accounts maintained at any branch of SBI
Group Transfers to accounts in State Bank Group
Inter Bank Transfers to accounts with other Banks
Online standing instructions for periodical transfer for the above
Credit PPF accounts across branches
Request for Issue of Demand Draft
Request for opening of new accounts
Request for closure of Loan Accounts
Request for Issue of Cheque Book.

Apart from these, the other salient value-added features available are:
Utility bill payments
Online Ticket Booking for travel by Road, Rail and Air
SBILIFE, LIC and other insurance premium payments
SBI and other Mutual funds Investments
SBI and other Credit Card dues payments
Tax Payment Income, Service, State Government
Customs Duty Payment
Online Share Trading (eZ-trade@SBI)
Online Application for IPO

44

3. MOBILE BANKING:

Apart from generating access to new business opportunities and new alliances, cost conscious
banks see the launch of this new channel, mobile banking services, as an opportunity to
reduce the operational costs while offering the customers convenience of facilitating 24X7
banking service. This will also result in increased customer satisfaction.
The mobile banking services can be offered over different modes, catering to both high end
and low end mobile phones. For customers with java enabled mobile phone, application
based service would be the best choice. The mobile banking application will reside in the
handset of the customer and is menu driven. This is a very secure mode since the messages
from the handset is encrypted end to end and cannot be tampered with during the
transmission to the banks server. Where the customer does not have GPRS facility, which is
chargeable service provided by the mobile operators, the messages are sent as encrypted
SMS. Mobile banking services over WAP is available for customers having mobiles with
GPRS facility. RBI has come out with guidelines for mobile banking services.

SBI has already put in place suitable infrastructure for offering this facility to its customers.
The product is named as STATE BANK FREEDOM. The ceilings for transactions under
Mobile Banking are as under:

45

Transactions Under Regular State
Bank Freedom
Under USSD/ SMS
Banking facility*
Maximum amount of
transactions for a day
Rs 50,000/- Rs 1,000/-
Maximum amount of
transactions per Calendar
month
Rs 2,50,000/- Rs 5,000/-

*It has been decided to increase the daily limits for transactions using plain SMS text, to
Rs.5000 subject to calendar month limit of Rs.25, 000 with the use of one time password.

3. REAL TIME GROSS SETTLEMENT (RTGS):

RTGS is an electronic payment system like wire transfer, Structural Financial Messaging
System (SFMS). Real time means payment transaction is not subjected to any waiting
period. Gross settlement means the transaction is settled on one to one basis without
bunching with any other transaction.
It saves time and cost of remittance and dispatch by the usual modes of remittance like draft,
cheque, etc. It is cost effective, saves money on reconciliation, follow-up, postage, etc. In SBI
all the information is routed through a dedicated accounting unit (DAU) setup under
Payments System Group at Global IT Centre, Navi Mumbai. Transaction amount under
RTGS should be more than Rs.2 lakhs.
RTGS transactions:
Day Start time End time
Monday to Friday 9.00 hrs 16.00 hrs
Saturday 9.00 hrs 13.00 hrs
Under normal circumstances the Beneficiary branches are expected to receive the funds in
real time as soon as funds are transferred by the remitting bank. If the money cannot be
credited for any reason, the receiving bank would have to return the money to the remitting
bank within 2 hours. Once the money is received back by the remitting bank, the original

46

debit entry in the customers account is reversed. The remitting customer has to furnish the
following information to a bank for effecting a RTGS remittance:
Amount to be remitted
His account number which is to be debited
Name of the beneficiary bank
Name of the beneficiary customer
Account number of the beneficiary customer
Sender to receiver information, if any
The IFSC number of the receiving branch
Remitters Mobile Number.

4. NATIONAL ELECTRONIC FUNDS TRANSFER (NEFT):

Inter Bank Transfer enables electronic transfer of funds from the account of the remitter in
one Bank to the account of the beneficiary maintained with any other Bank branch. NEFT is
maintained by Reserve Bank of India.
This system of fund transfer operates on a Deferred Net Settlement basis. Fund transfer
transactions are settled in batches as opposed to the continuous, individual settlement in
RTGS. Presently, NEFT operates in hourly batches from 9 am to 7 pm on week days and 9
am to 1 pm on Saturdays.
Day Start time End time
Monday to Friday 8.00 hrs 18.30 hrs
Saturday 8.00 hrs 12.30 hrs

If the beneficiary's bank is unable to credit the beneficiary's account for any reason, the
former will return the money to the remitting bank within 2 hours of completion of the batch
in which the transaction was processed. Once the amount is received by the remitting bank, it
is credited to the remitter's account by the branch concerned.

47

For affecting an NEFT remittance the remitter has to furnish the following information:
Amount to be remitted.
Remitting customer's account number which is to be debited
Name of the beneficiary bank.
Name of the beneficiary.
Account number of the beneficiary.
Sender to receiver information, if any
IFSC code of the destination bank branch.

5. DEMAT SERVICES:


Overview:
(i) All the new demat accounts and Online Trading accounts can be opened in the books of
SBI Cap Securities Ltd.
(ii) The existing demat accounts in the books of the Bank will continue to be maintained by
the Bank.

Existing demat customers of SBI will continue to get the services from SBI as before. SBI is
a Depository Participant registered with both National Securities Depositories Limited
(NSDL) and Central Depository Services Limited (CDSL) and is operating its DP activity
through more than 1000 branches. Our Power Demat Account offers you the following
features:
As opposed to the earlier form of dealing in physical certificates with delays in transaction,
holding and trading in Demat form has the following benefits:

48

Account Maintenance & Safe custody: Facilitates Maintaining Security Balance in
electronic form.
Dematerialization: Facilitates converting physical share certificate into electronic balances.
Rematerialization: Facilitates converting the electronic balances to physical (share
certificate) form.
Account Transfers: Facilitates delivery/receipt of electronic balances consequent to market /
off-market trades.
Pledge/Hypothecation: Facilitates blocking securities balance of borrowers in favour of
lenders for obtaining Loans / advances against shares.
Initial Public offer: Facilitates faster and direct credit of security balances into DP account
on allotment through public issue of companies.
Disbursement of corporate benefits: Facilitates faster and direct credit of security balance
into DP account on account of non-monetary corporate benefits as bonus and rights issues.
Security Lending: Facilitates earning extra income on your dematerialized holdings by the
way of securities lending.

A Demat account with SBI provides you the following benefits:
Customer Care: You can now call our dedicated Customer Care 24X7 and rest assured that
all your queries are taken care of.
Transact Anywhere: Now operate your Demat account from any of the 1000 plus Demat
enabled branches of SBI.
Statements by e-mail: Receive your account statement and bill by email.
Demat Services Online Facility: This convenient and paper free facility lets you operate
from the comfort of your home or office through SBI s Internet Banking Facility.
Online Demat Statements: You can now view your Demat account details, statement of
holdings, statement of transactions and statement of billing online.
BANKER CUSTOMER RELATIONSHIP:
Sr. No TYPE OF TRANSACTIONS POSITION OF
BANK
POSITION OF
CUSTOMER
1 Deposit Accounts, CC (with Credit
Balance)
Debtor Creditor

49

2 O.D, CC, Loan Accounts (with
Debit Balance)
Creditor Debtor
3 Collection of Cheques Agent Principal
4 Sale or Purchase of Securities Agent Principal
5 Issuing/ Purchase of Draft by
purchaser
Debtor Creditor
6 Payee of Drafts at Paying Branch Trustee Beneficiary
7 Mail Transfers, Telegraphic
Transfers
Agent Principal
8 Complying with Standing
Instructions
Agent Principal
9 Providing Various Services to non
account holders
Agent Principal
10 Cheques deposited pending
instructions for disposal thereof
Trustee Beneficiary
11 Safe Custody of Articles Bailee Bailor
12 Leasing of Locker Lessor
Licensor
Lessee
Licensee
13 Mortgage of Immovable Property Mortgagee Mortgagor
14 Pledge of Securities/ Shares Pledgee Pledgor
15 Hypothecation of Securities Hypothecatee Hypothecator
16 Sale/ Purchase of Shares etc Agent Principal
17 Maintaining Currency Chest
(RBIs property)
Agent Principal
18 FDR with Bank after maturity Debtor Creditor
19 Wrong credit given by the bank
where the amount has not yet been
recovered.
Beneficiary Trustee

FINANCIAL QUOTE OF STATE BANK OF INDIA:
MARKET CAP (RS CR): 182,148.90

50

P/E: 16.56

BOOK VALUE: (RS) 1584.34

DIV (%): 300.00%

MARKET LOT: 1

INDUSTRY P/E: 10.10

EPS (TTM): 147.33

P/C: 14.77

PRICE/BOOK: 1.54

DIV YIELD (%): 1.23%

FACE VALUE: (RS) 10.00

FINANCIAL PERFORMANCE:
Profit:

51

Given the system wide economic slowdown, the financial performance of the Bank during
the financial year ended 31st March, 2014, remained satisfactory. The Bank registered a good
growth in Operating Profit during the fourth quarter of the year as compared to previous
quarters. The Operating Profit of the Bank for 2013-14 was higher at Rs.32,109.24 crores, as
compared to Rs.31,081.72 crores in 2012-13, an increase of 3.31%.
The Bank posted a Net Profit of Rs.10,891.17 crores for 2013-14, as compared to
Rs.14,104.98 crores in 2012-13, i.e. a decline of 22.78% on the back of higher provisioning
requirement.
Net interest income:
Due to higher growth in the advances and investment portfolios, the gross interest income
from global operations rose from Rs.1,19,655.10 crores to Rs.1,36,350.80 crores during the
year registering a growth of 13.95%.
The Net Interest Income of the Bank correspondingly registered a growth of 11.17% from
Rs.44,329.30 crores in 2012-13 to Rs.49,282.17 crores in 2013-14.
Interest income on advances in India increased from Rs.85,782.26 crores in 2012-13 to
Rs.97,674.91 crores in 2013- 14 registering a growth of 13.86%, due to higher volumes.
However, the average yield on advances in India has declined from 10.54% in 2012-13 to
10.30% in 2013-14.
Income from resources deployed in treasury operations in India increased by 15.24% mainly
due to higher average resources deployed. The average yield has also increased to 7.65% in
2013-14 from 7.54% in 2012-13.
Total interest expenses of global operations increased from Rs.75,325.80 crores in 2012-13 to
Rs.87,068.63 crores in 2013- 14. Interest expenses on deposits in India during 2013-14
recorded an increase of 15.65% compared to the previous year. The average cost of deposits
has increased by 6 basis points from 6.29% in 2012-13 to 6.35% in 2013-14, whereas the
average level of deposits in India grew by 14.55%.

Non-interest income:

52

Non-interest income increased by 15.69% to Rs.18,552.92 crores in 2013-14 as against
Rs.16,036.84 crores in 2012- 13. During the year, the Bank received an income of Rs.496.86
crores (Rs.715.51 crores in the previous year) by way of dividends from Associate
Banks/subsidiaries and joint ventures in India and abroad.
Operating expenses:
There was an increase of 22.43% in the Staff Cost from Rs.18,380.90 crores in 2012-13 to
Rs.22,504.28 crores in 2013- 14. The main reasons for increase were higher provision for
pension liability due to revision in mortality table from 01.04.2013, impact of which was
Rs.2,400.00 crores and provision for wage revision to the tune of Rs.1,814.00 crores. Other
Operating Expenses registered an increase of 21.26% mainly due to increase in expenses on
rent, taxes and lighting, law charges, postage, telephones, printing and stationery, insurance
and miscellaneous expenditure.
Provisions and contingencies:
Major amounts of provisions made in 2013-14 were as under:
Rs.14,223.57 crores (net of write-back) for non-performing assets (as against Rs.11,367.79
crores in 2012-13).
Rs.1,260.69 crores towards Standard Assets (as against Rs.749.61crores in 2012-13),
including the current year's provision, the total provision held on Standard Assets amounts to
Rs.6,575.43 crores. Rs.5,282.71 crores towards Provision for Tax in 2013-14, (as against
Rs.5,845.91 crores in 2012-13).Rs.563.25 crores provisions for depreciation on investments,
excluding amortization of premium on ''Held to Maturity'' category (as against Rs.961.29
crores write back towards depreciation on investments in 2012-13).
Reserves and Surplus:
An amount of Rs.3,339.62 crores (as against Rs.4,417.86 crores in 2012-13) has been
transferred to Statutory Reserves.
An amount of Rs.216.75 crores (as against Rs.19.17 crores in 2012-13) has been transferred
to Capital Reserves.

53

An amount of Rs.4,796.63 crores (as against Rs.6,453.26 crores in 2012-13) has been
transferred to other Reserves.
Assets:
The total assets of the Bank increased by 14.43% from Rs.15,66,211.27 crores at the end of
March 2013 to Rs.17,92,234.60 crores as at the end of March 2014. During the period, the
loan portfolio increased by 15.70% from Rs.10,45,616.55 crores to Rs.12,09,828.72 crores.
Investments increased by 13.52% from Rs.3,50,877.51 crores to Rs.3,98,308.19 crores as at
the end of March 2014. A major portion of the investment was in the domestic market in
government securities.
Liabilities:
The Bank''s aggregate liabilities (excluding capital and reserves) rose by 14.08% from
Rs.14,67,327.59 crores on 31st March, 2013 to
Rs.16,73,952.35 crores on 31st March, 2014. The increase in liabilities was mainly
contributed by increase in deposits and borrowings. The Global deposits rose by 15.94% and
stood at Rs.13,94,408.50 crores as on 31st March, 2014 against Rs.12,02,739.57 crores as on
31st March 2013. The borrowings increased by 8.24% from Rs.1,69,182.71 crores at the end
of March 2013 to Rs.1,83,130.88 crores as at the end of March 2014.

54

CORE OPERATIONS:
Customer service:
At SBI, we believe customers represent the foundation of our achievements across decades. It
is their continuing support in our vision that has helped us strengthen our legacy as the
nation's most successful commercial Bank. Therefore, all our strategies and initiatives
revolve around the ''Customer'' and his/her preferences and aspirations.
Our Customer Service link, available 24 x 7 on SBI-Online, has the option of Online/Offline
Complaint Registration. Also Online/Offline Appreciation/ Feedback portal provides the
feeling of ''Customer Delight'', to our customers.
The Bank was the first in India to introduce a code of Fair Banking Practices in the country
called ''Towards Excellence''. The code reflects the Bank's continuing commitment to provide
world-class banking services to all sections of society. Towards this purpose, SBI has laid
down several policies:
1. Policy on Grievance Redressal.
2. Compensation Policy.
3. Cheque Collection Policy.
4. Policy on Depositors'' Rights.
5. Policy on Security Repossession/Code of Conduct for Recovery Agents.
6. Policy on Multi-city Cheque.

55

7 PS OF MARKETING MIX USE BY SBI:
1. Product:- The product in service marketing mix is intangible in nature. Like material
products such as detergent or soap, service products cannot be calculated. Banking Industry
can be an brilliant example. At the same time service products are heterogeneous, perishable
and cannot be owned. The service product thus has to be designed with care. Product Mix of
SBI may include deposits, cards, investment, demat services, loan, mobile banking, anywhere
banking, etc.
2. Price:- Pricing in case of services is quite more difficult than in case of products. The price
of the product depends upon the services provided by the Bank on the individual product to
the customers.
The pricing decisions and the decisions related to interest and fee or commission charged by
banks are found instrumental in motivating or influencing the target market
The IBA and the RBI are concerned with regulations. The rate of interest is regulated by the
RBI and other charges are controlled by IBA.
The banking industry is required to frame two- fold strategies. First, the strategy is concerned
with interest and fee charged and the second strategy is related to the interest paid.
Another component to consider in the pricing of earning assets is the risk of loss. Most
notably, this is relevant in loan pricing. Many banks allocate a risk weighting to individual
loans over a definite size or based on loan type and assign a credit risk charge based on those
ratings.
Asset and liability mix also impacts pricing results. Generally speaking, banks operating with
higher loan-to-asset ratios are able to afford to pay more for deposits. Likewise, banks can
afford to be further competitive with sure deposit products if they have fewer maturities in a
particular timeframe or less total outstanding balances in a product line.
Customer relationships are not easy to assign a value to in the pricing process. Customers will
generally press for some price concessions in consideration of other relationships they have
with the bank.
3. Place:- The place part of the marketing mix is where the customer receives the product or
service. Place in case of services determine where is the service product going to be located.
SBI has 17,000 branches in India, as on December 2013, of which 9,851 (66%) were in Rural

56

and Semi-urban areas and had 190 overseas offices extend over 34 countries.The selection of
a appropriate place for the establishment of a branch is important with the viewpoint of
making places accessible. Researchers find the following reasons why SBI select a specific
place as a branch?
The safety and security provisions
Infrastructure facility
Market coverage
Convenient to both the parties, such as the users and the bankers
4. Promotion:- Strategies to craft the consumer aware of the existence of a product or
service. Promotions have become a serious factor in the service marketing. Visualization
tangibilizes services through hoardings, print and TV campaigns or advertisements. Physical
representation in services has a good promotional application to customers like use of colors
to symbolize status and wealth. Service providers use documentation in their promotions in
support of their claims for dependability, responsiveness and popularity. SBI incurred huge
Advertising & Publicity Expenses every year.
4. People: - The word People is used in services marketing into two perspectives. One for
employees, i.e., internal marketing while another for customers, i.e., external marketing. In
this way the term people indicate both employees and customers in services marketing. All
people directly or indirectly involved in the consumption of banking services are an
important part of the extended marketing mix. Knowledge Workers, Employees,
Management and other Consumers often add significant value to the total product or service
offering. It is the employees of a bank which represent the organization to its customers.
SBI become conscious in its potential in internal marketing the attraction, development,
motivation and retention of qualified employee-customers through need meeting job-
products.
Internal marketing paves method for external marketing of services. In internal marketing a
variety of activities are used internally in an active, marketing like manner and in a
coordinated way.
6. Process: - Service process is the way in which a service is delivered to the end customer. A
process is a particular operation or method of a series of actions, typically involving multiple
steps that often need to take place in defined sequence. Process is something related to:

57

How do people consume services?
What processes do they have to go through to obtain the services?
Process includes the way things are actually done and the steps taken to achieve bottom line
results has been given considerable attention over the years in the areas of manufacturing,
engineering, computer programming and banking sector.
Flow of activities: All the major activities of SBI banks follow RBI guidelines. There has to
be adhered to sure rules and principles in the banking operations. The activities have been
segregated into a range of departments accordingly.
Standardization: SBI bank has got standardized procedures got typical transactions. In fact
not only all the branches of a single-bank, but all the banks have some standardization in
them. This is because of the rules they are subject to. Besides this, each of the banks has its
standard documentations, forms etc. Standardization saves a lot of time behind individual
transaction.
Customization: There are specialty counters at every branch to deal with customers of a
particular scheme. Besides this the customers can select their deposit period among the
available alternatives.
Number of steps: Numbers of steps are usually specified and a exact pattern is followed to
minimize the time taken.
Simplicity: In SBI banks a variety of functions are segregated. Separate counters exist with
clear indication. Thus a customer wanting to deposit money goes to deposits counter and
does not mingle elsewhere. This makes procedures not only simple but consume less time.
Besides instruction boards on national boards in national and regional language help the
customers further.
Customer involvement: ATM does not involve any bank employees. Besides, during usual
bank transactions, there is definite customer involvement at some or the other place because
of the money matters and signature requires.
7. Physical evidence: - Physical evidence is the material part of a service. Strictly speaking
there are no physical attributes to a service, so a consumer tends to rely on material cues. The

58

physical evidences include signage, reports, punch lines, other tangibles, employee dress
code etc.
Signage: Each and every bank has its logo by which a person can identify the company. Thus
such signages are significant for creating visualization and corporate identity.
Financial reports: The Companys financial reports are issued to the customers with emphasis
or credibility.
Tangibles: Bank gives pens, writing pads to the internal customers. Even the passbooks,
checkbooks, etc. reduce the inherent intangibility of services.
MARKETING COMMUNICATION MIX STRATEGY:
1. Personal communication: includes customer service, training and word of mouth.
2. Advertisement: includes broadcasting, internet, direct mail
3. Sales promotion: includes price promotions
4. Publicity and public relations: press conference, special events and sponsorship.
5. Instruction material: through website or manual process.
6. Corporate design: includes interior dcor and stationery.

FINANCIAL INCLUSION WITH RESPECT TO SBI:

59

SBI is the largest bank in India with over 9,000 branches and is also the largest player in the
microfinance sector in India with a market share of around 20%. The bank has been an active
participant in the microfinance programs initiated by NABARD since 1992. State Bank of
India (SBI) is the largest commercial bank4 in India. The Sakoli agricultural development
branch of SBI in Bhandara district, Maharashtra was in deep trouble in mid 1990s as the
branch could not recover the loans disbursed to the farmers in 15 villages.
The farmers were unable to repay the loans due to the failure of crops. SBI decided to close
the branch. The branch manager visited these villages and persuaded a few of the villagers to
form Self Help Groups (SHGs)5 by explaining them the benefits of SHGs and the process of
saving certain amount of money every month. After a lot of persuasion, the reluctant villagers
formed an SHG. After the SHG was formed, the villagers, who in 1995 were finding it
difficult to save even Rs 5 a month, were individually saving Rs. 500 per month by 2005. In a
span of a decade, the 15 villages, with a predominant farming community, had changed for
the better. The SHGs had borrowed Rs 500,000 to buy tractors.
With more than 9000 branches, and more than 4,000 branches of its associated banks, SBI
catered to the needs of agriculturists and landless laborers through 6,600 semi-urban and rural
branches. SBI had setup 974 branches exclusively for development of agriculture through
credit deployment. The Prime Minister of India, Manmohan Singh remarked that SBI needed
to play a major role and guide all the other banks in increasing the market for rural credit. At
the bicentennial celebrations of SBI in June 2005, he said "You (SBI) have to leverage your
strengths, develop new capabilities, and show initiative to venture into uncharted territories
so that you continue to be in the vanguard of India's growth in this century8..."

Background Note:

60

The origin of SBI dates back to the early 19th century, when the Bank of Calcutta was
established in Calcutta (present day Kolkata in the state of West Bengal) in June 1806 under
the aegis of the British-run, Government of Bengal. Three years after its inception, the bank
was renamed Bank of Bengal on receiving its charter. It was a unique banking institution as it
was the first joint-stock bank in British India. Next came the Bank of Bombay in April 1840
followed by the Bank of Madras in July 1843. By 1876, the three presidency banks, together
with their branches, agencies and sub-agencies, covered major inland trade centers in India.
Bank of Bengal had 18 branches while the other two had 15 branches each.
Finance | Case Study in Management, Operations, Strategies, Finance, Case Studies:
Initially, the business of these banks was restricted to discounting bills of exchange or other
negotiable private securities, keeping cash accounts and receiving deposits and issuing and
circulating cash notes.
The last quarter of the 19th century witnessed rapid commercialization in India owing to the
expansion of the railway network to cover all the major geographic regions of the country.
The three presidency banks were both beneficiaries and promoters of this commercialization
process as they became involved in the financing of practically every trading, manufacturing
and mining activity in the Indian subcontinent.
The three presidency banks were amalgamated in January 1921 to form the Imperial Bank of
India. The new bank performed the triple role of a commercial bank, a banker's bank and a
banker to the government...

PERSONAL INTERVIEW WITH SBI MANAGER

61

It is a personal interview of Mr. Nitin Y Deshmukh, the Branch Manager of State Bank
of India, Vazira Naka Branch, Borivali(W).
Q.1. What makes SBI NO. 1 bank?
Ans: The number of branches and customers, the customer service that has been provided, the
amount of SBIs deposits and advances, etc. have made SBI a number1 bank.
Q.2. What is the system undertaken by SBI for implementing all transactions?
Ans: SBI transactions are carried out by a system known as Bankslink.
Q.3. How much amount of time is required for a customer to wait in a queue?
Ans: It may be maximum 10 minutes but it also depends upon the number of customers
waiting forward.
Q.4. What type of new technology has SBI undertaken?
Ans: New technologies such as biometric scanning, cash counting machine and cash
depositing machine has been developed.
Q.5. How is the social behaviour of the employees of SBI?
Ans: The social behaviour of the employees is customer based, i.e., they provide at power
service and are friendlier with all the customers. They also try to provide better customer
service. If the customer complaints, then the employees have to reply as soon as possible and
they have to satisfy the customers accordingly within 3 days according to the bank norms.
Q.6. How often does SBI conduct training programmes to improve knowledge attitude, skills
and social behaviour of the employees?
Ans: SBI conducts training programmes at every 6 months. For new employees, there is a 15
days training before their joining to SBI.
Q.7. What is the bank doing to satisfy their customers in a best possible manner?
Ans: The bank is trying to provide immediate service and better service to its customers. It is
also planning to provide a wide range of services and new products.

62

Q.8. Does SBI has set up any committee for customer service? If yes, then how has the
committee formed?
Ans: There is a Customer Service Committee which comprises of 1 customer and 5
employees in which 1 employee is a branch manager. This committee is set up to discuss how
the customer service can be improved. A part of the discussion includes some view points of
the customer relating about the services provided.
Q.9. What are the programmes undertaken by SBI for employees?
Ans: ARROHAN, UDAAN, PARIVARTAN and BACK TO BASIC are the training
programmes for employees that are undertaken by SBI.
Q.10. What is the major goal or aim of SBI that is to be achieved?
Ans: The major goal is to maximize the business, to provide the best customer service,
enhance customer satisfaction and remain on 1
st
position all over India.

63

CONCLUSION:
Customers for financial services are changing in terms of their wants, needs, desires,
expectations and problems and financial service providers have to understand who their
customers are, what they prefer, why they buy, who makes the decision and how the
consumer uses the product and service.
In conformity with these changes, there should be changes in the Bank's services, training,
attitudes and images, marketing strategies and patterns of organization and control. New
technology driven products blended with the traditional ones and personalized service will
enable banks to extend a variety of financial services under one roof.
SUGGESTIONS FOR FURTHER RESEARCH:
Financial services marketing researchers will need to focus on customer's needs, attitudes,
values and behaviour. Customer research will help in understanding and anticipating
customer needs that can be met through product development or through differentiation.
There is tremendous scope for further research along bank customers and staff in Kerala, the
state with highest literacy and banking habits. It will enable monitoring of customer
satisfaction with personal service and with automated service-delivery methods in order to
pinpoint areas where service quality can be enhanced. Internal marketing will also be
challenged to use technology to more precisely identify and segment markets and prospects
that can be targeted with a special offer.

ANNEXURE: PUBLIC SURVEY
Name :
Age :

64

Occupation :
Income :

Questions:
1. Do you hold accounts in State Bank of India?
Yes No
2. Do you have accounts in banks other than SBI?
Yes No
List them:

3. How many times do you perform transactions with SBI?
No. of Transactions
0-10
10-20
20-30
More than 30
4. Is SBI at a convenient location?
Yes No
5. Are the employees of SBI friendly with you?
Yes No

6. What are the services you provided by SBI that you prefer the most?
Corporate banking
Mobile banking
Funds Transfer
RTGS
Bill payment

65

Demand Draft
7. Are the following facilities important in your decision about transacting with SBI or not?
Facilities Important Not important
Net banking
Telephone banking
24 hr customer service
8. Do you prefer the use of Modern Technology in SBI?
Yes No
9. How would you rate the overall efficiency of SBI?
Good Average Bad

FIELD VISIT TO SBI BANK
CUSTOMER SURVEY:
1. Number of people holding accounts other than SBI: 30%

66

2. Number of Transactions performed within a month:

3. Is SBI at a Convenient Location: 100%

4. Are the employees of SBI friendly with you: 100%
other than
SBI
30%
only in SBI
70%
15%
40%
25%
20%
0-10 10-20 20-30 more than 30
Yes
No

67

5. What are the services provided by SBI that you prefer the most:

yes
100%
no
0%
Corporate Banking
36%
Mobile Banking
17%
Funds
Transfer
6%
RTGS
2%
Bill payment
24%
Demand Draft
15%

68

6. Are the following facilities important in your decision about transacting with SBI or not:

7. Number of persons using Modern Technology in SBI:

8. Overall Efficiency of SBI: Good.

Net Banking
36%
Telephone
Banking
22%
24 Hr
Customer
service
42%
Users
90%
Non-
Users
10%

69

CONCLUSION:
1. 30% of the customers of SBI have accounts in banks other than SBI.
2. 15% of the customers perform less than 10 transactions in a month.
40% of the customers perform 10-20 transactions in a month.
25% of the customers perform 20-30 transactions in a month.
20% of the customers perform more than 30 transactions in a month.
3. Most of the customers say that SBI is located at a convenient location.
4. All the customers say that the employees of SBI are friendlier.
5. 36% of the customers prefer corporate banking services, 24% for bill payment, 17% for
mobile banking services, 15% for demand draft, 6% for funds transfer and 2% for RTGS.
6. For 42% of the customers, 24 hr customer service is important.
For 36% of the customers, net banking is important.
For 22% of the customers, telephone banking is important.
7. 90% of the customers use modern technology in SBI.
8. The overall efficiency of SBI is good.

BIBLIOGRAPHY:

70

http://simple.wikipedia.org/wiki/State_Bank_of_India
economictimes.indiatimes.com
Company Profile for State Bank of India in.reuters.com
www.sbiantwerp.com
www.moneycontrol.com
www.onlinesbi.com
State Bank of India: Competitive Strategies of a Market Leader |Business Strategy Case
Studies| Business Strategy Articles
www.icmrindia.org
www.sbicard.com
www.sbi.co.in
Mobile Banking - SBI Corporate Website www.sbi.co.in
http://in.reuters.com/finance/stocks/SBI.BO/key-developments
retail.onlinesbi.com
https://www.sbi.co.in/portal/web
Books referred:
Ankur- A reading material for newly recruited Assistants-2012.

Sbi Sbi Final

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