FINANCIAL INSTITUTIONS AND MARKETS

CASE STUDY: BANKING PRODUCTS

GROUP NO: 03
Anand Sharma 18005
Mallepogu Tarun Kumar 18076
Bille Sai Dinesh 18096
Ekta Burman 18100
Pratik B Bathia 18106
 1) Study the products and services available for individuals (retail
customers). In particular, study the various types of accounts that can
be opened by individuals with the bank like SB a/c, RD a/c, FD a/c etc.
Also, study the loan products offered by the bank for individual
customers?

Bank Chosen: SBI

State Bank of India (SBI) is an Indian multinational public sector bank. Its headquarters is in
Mumbai. It has its roots in the Bank of Calcutta, which if founded in 1806. The imperial bank
of India came into existence in 1921. The three Presidency Banks (Bank of Madras, Bank of
Calcutta, Bank of Bombay) were reorganized and amalgamated to form a single banking entity.
Imperial Bank of India became the State Bank of India in 1955 through State Bank of India
Act, 1955. The Government of India took control of the Imperial Bank of India in 1955.
Products and services available for Individuals (Retail Customers):
RETAIL BANKING
Retail Banking is nothing but in which banks execute transactions directly with the customers.
Not with the corporations or other banks. Services offered in Retail banking are savings
accounts, personal loans, debit & credit cards etc.
SBI Retail Banking
Retail Products and Services of State Bank of India
ASSETS LIABILITIES SERVICES
SBI Housing Loan Term Deposits Debit & Credit cards (Gold,
Silver, Platinum)
SBI Car Loan Current Deposits Internet Banking- Yono App
Student Education Loan Savings Bank Account ATM Services
Loan against shares and No frills account Locker Facility
debentures
Loan against fixed deposits Premium Saving account eZ-trade@SBI
Loan against Mortgage of Special Term Deposit
property Account

Easy travel loans. Multi Deposit Scheme

NRI Deposit Scheme

Recurring Deposits Account

Basic Deposits Account:

Term Deposit: Deposit of an amount for a fixed period where interest is paid
monthly/Quarterly.

 Period of time: 7 days to 10 years

  Affordable Low Minimum Deposit Amount: Customer can open a term deposit account
with SBI for a nominal amount of Rs.1000/- only.

(All figures in % per annum)

Tenors Existing for Revised For Existing for Revised for Senior
Public w.e.f. Public w.e.f. Senior Citizens Citizens w.e.f.
22.02.2019 09.05.2019 w.e.f. 22.02.2019 09.05.2019

7 days to 45 days 5.75 5.75 6.25 6.25

46 days to 179 days 6.25 6.25 6.75 6.75
180 days to 210 days 6.35 6.35 6.85 6.85
211 days to less than 1 year 6.40 6.40 6.90 6.90
1 year to less than 2 year 6.80 7.00 7.30 7.50
2 years to less than 3 years 6.80 6.75 7.30 7.25
3 years to less than 5 years 6.80 6.70 7.30 7.20
5 years and up to 10 years 6.85 6.60 7.35 7.10

Savings Bank: Running account for saving with restriction in number of withdrawals
Sl.No Particulars Rate of interest

1 Savings deposits balance 3.50% p.a.

upto 1 crore
2 Savings deposit balance 4.00% p.a.
above Rs. 1 crore

Key features:

1. No Minimum Balance requirement.

2. Personal Accident Insurance of Rs. 4 lakhs available at an annual Premium of Rs. 100/-
3. Earn Interest at 4.00% p.a. on customer savings on daily balance.
4. Transfer of accounts between their wide networks of Branches (more than 14000).
5. Multicity cheques available.
6. Internet Banking, Mobile Banking, Kiosk Banking available.
7. Safe Deposit lockers available.

Current Account: Running account without restriction on number of withdrawals

Important Terms & Conditions:

1. Overdraft facility available based on credit history.

2. No restrictions on number of Payments / Withdrawals.
3. No interest paid on Deposits.
4. Transfer of account to any branch possible.
5. Account maintenance charge applicable.
 6. No Passbook is issued but Statement of account is issued.
7. Nomination facility available.
8. KYC Norms of RBI to be followed for opening of Account.

Special Term Deposit: Deposit of an amount for a fixed period where interest is compounded.
This plan helps customers to earn interest on interest, thus giving them a two-fold income.
They deposit their money with SBI for any period between six months to 10 years, and bank
pays them interest on their deposited money plus on the interest what they earn. Thus their
interest gets compounded every quarter giving customers higher returns.

1. Customers can open a Special Term Deposit with SBI for a nominal amount of Rs.
1000/- only.
2. Loan/overdraft up to 90% of the deposit amount plus accrued interest

Recurring Deposit: Regular (Monthly) deposit of a fixed amount for a fixed period. With SBI
Recurring Deposit scheme a customer can save a little every month so that at the time of need
they have sufficient funds to achieve their financial goals.

Period of Time:

 Flexibility in period of deposit with maturity ranging from 12 months to 120 months.
 Low minimum monthly deposit amount.
 Customer can start a Recurring Deposit with SBI for a monthly instalment of Rs.100/-
only.

Premium Saving account:

This provides an enriched version of Savings Bank account consisting of various concessions
and add-ons.

Multi Option Deposit:

The Multi Option Deposit (MOD) Account is a combination of Savings Bank or Current
Account with Term/ Special Term Deposit Accounts, so that one can securely write cheques
up to the balance in the MOD account or up to the drawing power available as overdraft in the
Current account. Withdrawals through ATMs can also be conveniently made.

Features:

 Customer can open a MOD account with SBI for a minimum amount of Rs. 10,000/-
only.
 MOD Scheme is available at all SBI Branches.
 Easy and convenient access of 24X7 information at SBI Internet Banking.
 Nomination Facility is also available.
SBI LOANS:

Loan against Mortgage of property: SBI loans against property scheme allow customers to
have cash in liquid form worth amount of their property without selling their property. They
can keep their property as a security with bank and can easily avail liquid cash for them for
their work like marriages or personal needs on interest.

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

Interest Rates for Educational Loans:

Loan Amount Rate Of Interest

For loan upto 4 lakhs 8.55%
Above 4 lakhs and upto 7.50 lakhs 10.25%
Above Rs. 7.50 lakhs 10.50%

SBI Car Loan

SBI New Car Loan interest rate starts from 9.30% and SBI Used Car Loan interest rates starts
from 12.60% .
Salient features:

 No Advance EMI
 Longest repayment tenure (7 years)
 Lowest interest rates
 Lowest EMI
 Free Accident Insurance

Features New Car Loan Used Car Loan

Loan Tenure Upto 7 Years Upto 7 Years
Lowest EMI Rs. 1624 per lakh Rs. 1624 per lakh
Loan Amount Upto 85% of on-road price Upto 85% of on-road price
Prepayment Charges Nil 2%

SBI Housing Loan

SBI home loan is the largest Mortgage lender with values including trust, transparency,
integrity and excellence. The feature and benefits offered include:
 Low interest rate with
Available as an
calculation on
overdraft
reducing balance

Low processing No prepayment

charges penalty

There are 5 categories of home loans. They are:

1. Regular Home loan
2. Balance transfer of home loan
3. NRI home loan
4. Flexipay home loan
5. Privilege home loan
Processing fees charged for all these types are-
0.35% of the loan amount plus service tax, Minimum of Rs. 2,000/- and Maximum of
Rs. 10,000/-
Out of pocket expenses are recovered separately.
Document required includes:
1. For all aplicants-
 Employer Identity Card
 Loan Application: Completed loan application form duly filled with 3 Passport size
photographs
 Proof of Identity (Any one): PAN/ Passport/ Driver’s License/ Voter ID card
 Proof of Residence/ Address (Any one): Recent copy of Telephone Bill/ Electricity
Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card

2. Property Papers: (As applicable)

 Permission for construction
 Allotment Letter/Stamped Agreement for Sale
 Occupancy Certificate
 Maintenance Bill, Electricity Bill, property tax receipt
 Approved Plan copy (Xerox Blueprint) & Registered Development agreement of the
builder, Conveyance Deed (For New Property)
 Payment Receipts or bank A/C statement showing all the payments made to
Builder/Seller

3. Account Statement:
 Last 6 months Bank Account Statements for all Bank Accounts held by the
applicant/s
 Loan A/C statement for last 1 year, in case of previous loans
 4. Income Proof for Salaried Applicant/ Co-applicant/ Guarantor:
 Salary Slip or Salary Certificate of last 3 months
 Copy of Form 16 or ITR for last 2 years

5. Income Proof for Non-Salaried Co-applicant/ Guarantor:

 Business address proof
 IT returns for last 3 years
 Balance Sheet & Profit & loss A/c for last 3 years
 Business License Details(or equivalent)
 TDS Certificate (Form 16A, if applicable)
 Certificate of qualification (for C.A./ Doctor and other professionals)
However following differences were noted :
Basis Regular Privilege Balance NRI Flexipay
Transfer
Residential Indian Indian Indian NRI or person Indian
status of Indian origin
Maximum 18-70 years 18-75 years 18-70 years 18-60 years 21-45
and years
Minimum
age
Special Products to Interest NA NA 20%
feature suit concession higher
individual in case home
needs check off is loan
provided eligibility
Additional NA NA Documents 1.Attested copy NA
documents from other of valid passport
required bank: and Visa
1.List of 2. Address
original proof
documents mentioning
held current overseas
2.Loan a/c address
statement of 3. Copy of
1 year continuous
3. Sanction discharge
letter certificate
4.Interim
period
security

a. Loan tenure for all is 30 years

b. Interest concession is given to women borrowers
PERSONAL LOAN

State Bank of India, offers personal loans for various cash requirements faced by individuals.
It has different interest rates for salaried and self-employed. The interest rate for salaried is
10.75% and for self-employed is 11.00%. Loan Tenure is 5 years and Loan amount Minimum
Rs. 24000 to Rs. 15 Lakhs for both the cases.

It also offers SBI Xpress Credit personal loan instantly for those with urgent cash requirements
like a medical emergency. Interest is charged on the daily reducing balance. For processing
loan a very low processing charge of 1.01% of the amount is charged. No collateral is required.

2) Study the requirements for opening of a SB account with the bank. If

there are simplified requirements for special categories of customers
or for special categories of accounts, study the differences.
Requirements of Opening an SB account with SBI
Eligibility for State Bank of India Savings Account:
1) The customer should be a citizen of India.
2) He /She should be 18 years and above to be eligible.
3) In the case of minors, the parents or legal guardian of the minor can open the account
on their behalf.
4) The applicant is required to have valid identity and address proof which is
Government approved.
Documents Required to Open SBI Savings Account:
1) Proof of identity
2) Proof of address
3) PAN card.
4) Form 16 – salary certificate issued by the employer (if customer doesn’t have a pan
card)
5) 2 latest passport size photographs.
Documents accepted as proof of identity or proof of address:
1) Passport
2) Voter’s Identity Card
3) Driving License
4) AADHAAR Card
5) NREGA Card
6) PAN Card
Special Categories of Accounts & their requirements:
Categories:
1) Savings Plus Bank Account
2) Small Savings Account
3) Savings Account for Minors
 Pehla Kadam
 Pehli Udaan
4) Insta Savings Account
5) Digital Savings Account
Requirements of each of the above bank:
1) Savings Plus Bank Account
 Eligibility is same as it is in the case of Savings Bank Account mentioned above.
 Minimum balance/monthly average balance required is Rs. 3,000 in metro or
urban branch; Rs. 2,000 in semi-urban branch; Rs. 1,000 in rural branch.
 Maximum limit for balance is 35,000/-.
2) Small Savings Account
 Eligibility is same as it is in the case of Savings Bank Account mentioned
above.
 No need to maintain any minimum balance in the account.
 Maximum balance that could be maintained is 50000/-.
3) i) Pehla Kadam
 Minor of any age.
 The account should be opened jointly with the Parent/ Guardian.
 No need of maintaining any minimum amount of balance.
 Maximum balance that could be maintained is 10 lakhs.
ii) Pehli Udaan
 Minor’s age should be above 10 years.
 The Account will be opened in the sole name of the minor.
 No need of maintaining any minimum amount of balance.
 Maximum balance that could be maintained is 10 lakhs.
4) Insta Savings Account:
 The individual should be the resident of India.
 The individual should be above 18 years of age.
 He should have a valid Aadhaar number linked with his mobile number in his
name.
 He should have PAN Card.
 He should not have any existing relationship with the bank.
 He should not have any OTP based account with any other bank or financial
institution.
 Single transaction limit should not be more than 49,999/-
 Balance should not be more than 1,00,000/-
 He can only have one Insta Savings Account and no other account at a given
time.
5) Digital Savings Account:
 The individual should be the resident of India.
 The individual should be above 18 years of age.
 Aadhaar and PAN cards are mandatory for opening this account.
 Only one Digital Savings Account can be opened with one mobile number and
one Email ID.
 He needs to complete full KYC through biometric authentication by vising the
SBI branch.