SUMMER INTERNSHIP PROJECT REPORT ON SBI BANK

Study of product and Consumer Perception of SBI

Report Submitted to Rashtrasant Tukadoji Maharaj

Nagpur University

Master of Business Administration (MBA) Course

Specialization in Marketing and Human Resource Management

Prepared by
JAYASHRI B. KHAMANKAR

Guided by
PROF.ABHISHEK SHAHU

Tirpude Institute of Management Education

Civil Lines, Sadar, Nagpur 440001

CERTIFICATE

This is to certify that Miss. Jayashri B. Khamankar is a bonafide student of Tirpude

Institute of Management Education, Nagpur pursuing Master of Business Administration

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(MBA) course specializing in Marketing and Human Resource Management during academic
Session 2017-18.

The candidate has worked under the supervision of Prof.Abhishek Shahu and has
satisfactorily completed his project work in this academic session. The project submitted by
him is his own work and is complete so as to warrant its presentation for examination.

His project work titled Study of product and consumer perception of SBI At SBI
Bank which is in partial fulfillment of the requirement for the above course is being
forwarded to Rashtrasant Tukadoji Maharaj Nagpur University for examination.

Project Guide Director

Prof. Abhishek Shahu

Tirpude Institute of
Management Education

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 DECLARATION

I, the undersigned Jayashri B. Khamankar, hereby declare that project report

entitled Study Of Product and consumer perception of SBI At SBI Bank is my own work
and has been carried out under the supervision and guidance of my Supervisor
Prof.Abhishek Shahu
This work has not been previously submitted by me to any other examination of this
University or any other University.

Place : Nagpur Jayashri B. Khamankar

Date :

Acknowledgement

I take this opportunity to convey my gratitude to those who provided me help during the
course of my study. It is indeed a great pleasure to express my sincere thanks and great sense

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of gratitude to Prof.Abhishek Shahu for his valuable guidance, timely help and suggestion
and constant encouragement during my project work.

I am equally indebted to my Supervisor Mr.Pandurang Gawande for his co- operation,

guidance and constant encouragement.

Date: Jayashri B. khamankar

Place: Nagpur

INDEX

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Sr. No. PARTICULARS PAGE NO.

1 Introduction to the Topic 1

2 Introduction to the Company 2

3 Industry Profile 6

4 Objectives of the product 9

5 Nature of Work done during the Internship 10

6 Academic Learning 14

7 Professional Learning 15

8 Findings and conclusion 16

9 Recommendations / Suggestions 17

10 Bibliography 18

11 Annexure 19

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 CHAPTER-1
INTRODUCTION TO THE TOPIC

What is the project?

a) Analyzing the awareness of banking products in customers.

b) To determining the challenges faced by banking industry and its various threats.
c) To understand the need of online banking and mobile banking.

Scope of the project

Core banking project is widely applicable with private banks. It can even be used in
industries for their personal transactions (working). The study will help the bank to
understand how the electronic banking operations are going on. The greater scope of the
study is that it will help the bank to improve efficiency of core banking solution

Contributions of the project

It will help in creating customer satisfaction/in terms of quality/in terms of better services.
This project is a small analysis of the work which is done for knowing the products of
bank in better way and moving towards customer satisfaction.
It will help in better understanding of online banking and mobile banking in customers.
It will help to know about the recent evolution and trends in banking industry for better
improvement.

Outline of the project report

It will help to better understand the mind of the customer related to banking products
and various investment opportunities in banks like saving a/c, current a/c, fixed deposits,
recurring deposits, mutual funds, loans, life insurance/ general insurance .
As we know that online banking and mobile banking are new to customers, it should
be made more familiar to customers to ensure that customers will make better use of this
facilities.

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 CHAPTER-2
INTRODUCTION TO THE COMPANY

What is SBI:-
State bank of India is the largest commercial bank in India in term of assets, profits,
branches customers and employees. The government of India itself is the largest
shareholder of this fortune 500 company, with 58.60% ownership, and sbi was ranked
152nd in the forbes list of global 2000 firms in may 2015.
State Bank Of India is a member of financial services compensation scheme protects
deposits held with our UK branches. Payment under this scheme are limited to 85,000
of your total deposits with us in the UK.
Awards:-
1) our bank is your bank
2) our commitments and supply chain management

Established in
1955 State Bank of India (SBI) is an Indian multinational, public sector banking
and financial services company. It is a government-owned corporation with its headquarters
in Mumbai, Maharashtra. On 1st April, 2017, State Bank of Bikaner & Jaipur, State Bank of

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Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore) and
Bharatiya Mahila Bank with itself.

SBI has 18,354 branches in India. In the financial year 201213, its revenue was 2.005
trillion (US$31 billion), out of which domestic operations contributed to 95.35% of revenue.
Similarly, domestic operations contributed to 88.37% of total profits for the same financial
year. Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by
Government in August 2014, SBI held 11,300 camps and opened over 3 million accounts by
September, which included 2.1 million accounts in rural areas and 1.57 million accounts in
urban areas.
SBI is one of the largest employers in the country with 209,567 employees as on 31 March
2017, out of which there were 23% female employees and 3,179 (1.5%) employees with
disabilities. On the same date, SBI had 37,875 Scheduled Castes (18%), 17,069 Scheduled
Tribes (8.1%) and 39,709 Other Backward Classes (18.9%) employees. The percentage of
Officers, Associates and Sub-staff was 38.6%, 44.3% and 16.9% respectively on the same
date.

Major Competitors in SBI

one of the major competitors for SBI in the banking sector are large other public sector
banks, Punjab National Bank, Bank of Baroda, Canara Bank, Bank of India. And large
private sector banks ICICI Bank, HDFC Bank, Axis Bank, IndusInd Bank. And However, in
terms of average. market share, SBI is by far the largest player in the market.

Key People:-

Arundhati Bhattacharya is an Indian banker and is currently the Chairman of the State
Bank of India. She is the first woman to be the Chairman of State Bank of India . In 2016, she
was listed as the 25th most powerful woman in the world.
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3) INDUSTRY PROFILE:-

Banking industry comes under two sectors i.e. government banks and private banks. But both
government banks and private banks are controlled and regulated by RBI i.e. Reserve bank of
India. There are number of government banks like state bank of India, bank of Maharashtra,
etc. . and private banks like ICICI, HDFC, IDBI, KOTAK MAHINDRA BANK , CITY
BANK , etc.
Banking industry is full of challenges which deals in various products such as saving a/c,
current a/c, mutual funds, Life insurance/ general insurance , loans, fixed deposits, recurring
deposits, etc.
Every bank is providing different interest rates on saving a/c and current a/c. Every bank
provide different facilities and schemes to their customers. Many a times it is seen that
private bank is providing better interest rates than government banks to attract customers
towards them.
Products like Life insurance and general insurance is most beneficial to banks. It gives
more income to banks as compared to other products. Whereas loans is also an income
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product for bank. There are different type of loans which banks provide like home loan,
personal loan, car lone , etc.
Banks also provide investment products in which customers can invest their savings such as
fixed deposits which is also known as term deposit, Recurring deposits, mutual funds , etc. .
Banks also provide the facility to invest in mutual funds . some banks have their own
mutual funds while some deals in funds of others. Mutual funds of funds can be of three types
i.e. large cap , mid cap or small cap. Customer can invest in any of them or in all of them.
Banks also provide lockers facility for customers so that customers can save their
money or keep their important documents in that
locker for safety.

OBJECTIVE OF THE PRODUCT

Product of SBI:-
1) Pradhan Mantri Suraksha Bima Yojana
Pradhan Mantri Suraksha Bima Yojana is a government-backed accident
insurance scheme in India. It was originally mentioned in the 2015 Budget speech by
Finance Minister Arun Jaitley in February 2015. It was formally launched by Prime
Minister Narendra Modi on 9 May in Kolkata As of May 2015, only 20% of India's
population has any kind of insurance, this scheme aims to increase the number. This
scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan
Yojana scheme. Most of these account had zero balance initially. The government aims
to reduce the number of such zero balance accounts by using this and related
schemes. Now all Bank account holders can avail this facility through their net-banking
service facility at any time of the year.
The Service Tax is exempted on Pradhan Mantri Suraksha Bima Yojana the
amount will be automatically debited from the account.
Launched:- 9 may 2015

Policy Period: - The cover shall be for 1 year period

Premium:- 12 Per Annum

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OBJECTIVE
Currently it is almost impossible for poor people to buy any kind of insurance policy to due
to unaffordable premiums. Once this scheme is launched insurance penetration will widen
and it is believed that everyone would get a minimum basic cover. Public sector general
insurance companies and others wishing to participate will offer PMSBY scheme.

Benefits of Suraksha Bima Yojana

Premium: Cheapest insurance premium of just Rs. 12 per year. (As per my knowledge, this is
cheapest insurance premium in the world). This amount would be auto-debited from the
policy holders account directly.

Eligibility:
1) Age limit 18-70 years
2) Bank account is must

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 2 )Pradhan Mantri Jeevan Jyoti Bima Yojana:-
Primium :- It has an annual premium of Rs 330

Pradhan Mantri Jeevan Jyoti Bima Yojana is available to people between 18 and 50 years of
age with bank accounts. It has an annual premium of 330 The Service tax is exempted on
Pradhan Mantri Jeevan Jyoti Bima Yojana. The amount will be automatically debited from
the account. In case of death due to any cause, the payment to the nominee will be 2 lakh.
This scheme will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan
Yojana scheme. Most of these account had zero balance initially. The government aims to
reduce the number of such zero balance accounts by using this and related schemes.

Now all Bank account holders can avail this facility through their net-banking service facility
at any time of the year.

Benefits: Rs.2 lakhs is payable on members death due to any reason

OBJECTIVE :- Increase Penetration of Life Insurance: As i mentioned that penetration of

Life Insurance is very low at around 3% in India. Therefore, one of the reasons which i can
think off is that Pradhan Mantri Jeevan Jyoti Bima Yojana is launched with
anobjective to increase life insurance penetration.`

for all bank account holders whose age is between 18-50 years.
life insurance worth Rs. 2 lacs at just rs 330 per annum.
The person would be eligible to join the scheme through one saving bank account
only.
Protect your familys financial security in an eventuality.
Cover of Rs.2 lakh at reasonable cost.

3) Pradhan Mantri Jan Dhan Yojana

Pradhan Mantri Jan-Dhan Yojana(P.M.J.D.Y), Prime
Minister's People Money Scheme is India's National Mission
for Financial Inclusion to ensure access to financial services,
namely Banking Savings & Deposit Accounts, Remittance,
Credit, Insurance, Pension in an affordable manner.
This Financial inclusion campaign was launched by the Prime

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 Minister of India Narendra Modi on 28 August 2014 He had announced this scheme on his
first Independence Day speech on 15 August 2014. 1.5 Crore (15 million) bank accounts
were opened under this scheme .

Special Benefits under PMJDY Scheme

1. Interest on deposit.
2. Accidental insurance cover of Rs. 1 lac
3. No minimum balance required.
4. The scheme provide life cover of Rs. 30,000/- payable on death of the beneficiary, subject to
fulfillment of the eligibility condition.
5. Easy Transfer of money across India
6. Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts.
7. After satisfactory operation of the account for 6 months,an overdraft facility will be permitted
8. Access to pension,insurance products

INVESTMENT :-

Pradhan Mantri Jan-Dhan Yojana as on 9 August 2017 (All Figures in Crores)

Number of Accounts
Number
Bank Type Balance in Accounts
of RuPay Cards
Total Rural Urban

Public Sector
23.76 12.98 10.78 18.23 52,086.02
Banks

Regional
4.77 4.05 0.72 3.58 11,561.33
Rural Banks

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Private Banks 0.95 0.58 0.37 0.89 2,050.24

Total 29.48 17.61 11.87 22.70 65,697.59 crore(US$10 billion)

OBJECTIVE:-
To provide at least one bank account for every household
Overdrft facility of Rs.5000 after the initial six months
RuPay debit card
Personal accident insurance of Rs.1 lakh

Nature of Work done during the Internship

7Ps of Marketing at Sbi Bank

Product:-
Accounts: Easy Access Accounts, Prime Savings Account, Salary Account, Womens
Saving Account,
Deposits,SBI Bank offers a wide variety of Deposit product to suit our
requirements.Coupled with the convenience of networked branches over 3000ATMs
and facility of E-channels like internet and mobile Banking.
Saving Account:- SBI Bank offers a power packed saving account with a host
convenient features and banking channels to transact through.
Fixed Deposits :- Safety Flexibility A combination of unbeatable features of the fixed
deposit from SBI Bank.
Loans: Personal loan, Loan Against Property, Loan Against Security, Car Loans,
Study Loans, Two Wheeler Loan, Consumer Loan
Insurance: Health Insurance, Family Health, Health Guard.

Price
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 SBI bank has developed innovative strategies against its competitors with respect to
pricing by use of technology
The creation of centralized processing system linking all its branches has been a
major strategic move in this regard.
Customer relationship are difficult to assign a value to in the pricing process.

Place:
SBI Bank is widely spread in India
24,000 branches and 59,000 ATMs
The safety and security privisions
Market coverage
Process
Developed a robust internal as well as external business process and sales practices
Focused on the process development and bringing transparency to all the transactions
Positioning:-

Centralized phone banking centre.

Centralized collection and payment hub

People:

All people directly or indirectly in the consumption of banking services are an

important part of the extended marketing mix
In a banking organization, employees are essentially the contact personnel with
customer. Therefore, an employee plays an important role in the marketing operations
of a service organization.

Promotion

Advertising:- Television radio, movies theatres

Print media:- newspaper, magazines
Publicity:- road show, campus visit, sponsorship, camp to rural area.

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Other strategies
Segmentation Strategy:
Demographic Variables - Demographic segmentation variables are amongst the most
popular bases for segmenting customer groups which include Location, Occupation,
Age etc.
Psychographic Variables - Lifestyle, The people who believes in modern banking i.e.
internet banking (I-contact, mobile recharge, e-payment, travel currency card etc.)
Social class - Many Marketers believe that a consumers "perceived" social class
influences their preferences for products & services.

Targeting strategy:
Corporate banking market: this market target the industries.
Capital market: this segmented is targeted on the long term needs of the individual as
well as of industries
Retail banking market: this segment is for the retail investor and provide them short
term financial credit for their personal, household needs.

Selective specialization strategy:

SBI bank have different set of credit cards, each targeted at different set of people.

Positioning Strategy:
Customer centric
Service oriented
Product innovation

Internet Banking Strategy:

Offered a unique platform for all its customers both the individual as well as corporate
customers to complete transactions online.
Presence on all the 4 major social media platforms Facebook, Twitter, YouTube and
Linkedin.

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1) Academic Learning:
Learn how to interact with customers.
Cold-Calling to the customers and convenes them to open the Saving Account.
Learn time management and punctuality.
Seen the marketing strategy of Axis Bank.
Learn how the bank works and what procedure follows to do the work.
Seen how the teller works in a bank.
Distributed the brochures in front of ATMs.
Field work going shop to shop and convenes them to open the current account.

2) Professional Learning:
Learn how to use the finacle, the banking software.

Learn how to maintain relation with customers.

Learn the working behavior.
Learn the banking work environment.
Learn the communication skills, that how to talk with clients.
Learn how to handle the different customers.

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3) Findings and conclusion:
There are many drawbacks in working procedure in a branch.
Every person who works in a bank want to say the truth to the customer.
Some products/plan are very good then the competitors.
The mobile banking facility is excellent the mobile app is much better than others.
The Banking sector is developing and getting higher day by day in urban and semi
urban areas; there is large number of customers using the services in the urban and
semi urban areas. So a wide scope in rural areas is expected in the days to come.
The minimum balance is 10000 (Ten Thousand only).
There should be given more importance to online transaction and using m-commerce
and mobile banking services

4) Recommendations / Suggestions:
The minimum balance should be modified because 10000 is large amount to maintain.
In a competitive environment, the Banks should adopt suitable marketing skills rather
than depending on the trading skills. Hence, new services should be constantly
introduced to ensure the growth of the Banks and to be competitive in the market and
to keep up the enthusiasm of the employees and customers etc.
Implement a Customer Centric Process in Banks.
Increase customer experience through the web site.
Proper training should be given to the bank personnel regarding the behavioral
patterns by the Banks before they come and work in the field.
More importance should be given to handling online transaction and using m-
commerce and mobile banking services.
It should be realized that customer relation cannot be built overnight. CRM should be
considered as Continuous Relationship Management.
Data gathered from the customers should be given proper value and it should be
properly utilized. Decision making authority should be extended to field force and
some resources should be given for faster implementation.

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5) Bibliography:

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