CONTENT Page no.
Certificate from the Organization / Corporate Guide Certificate from the Faculty Guide Acknowledgement………………………………………………………………...02 Executive Summary…………………… Summary……………………....................... .............................................. ...................................03 ............03
Chapter 1…………………………………………………………………………..04
Company Profile •
Overview…………………………………………………………………...05
•
History……………………………………………………………………...07
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Competitors…………………………………...…………………………....09
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Strength/Opportunity & weakness/Threats………………………………... 10
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Different Products……………………...………….……………………….11
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Awards & Recognitions by SBI……….……………………………….......12
Chapter 2…………………………………………………………………………..14 •
Introduction to Advance Product...…………………………….…………… 15
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SBI Advance Product.……………………………………………………....16
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Statement the Problem……………………………………………………...25
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Research objectives…………………………………………...…………….26
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Significance and scope……………………………………………………...27
Chapter 3………………………………………………………………………….28
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Research methodology
Chapter 4 ………………………………………………………………………...31
Analysis of data
Chapter 5………………………………………………………………………....39 •
Findings……………………………………………………………………40
•
Suggestion & Recommendation……………………………………...….. 41
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Conclusion…………………………………………………………………43
Annexure (Questionnaire)………….……………………………………………44
Bibliography………………………………………………………………….…...47
Acknowledgement It is my proud privilege to release the feelings of my gratitude to several persons who helped me directly or indirectly to conduct this project work. I express my heart full indebtness and owe a deep sense of gratitude to my teacher and my faculty guide Prof. Deepak Tondon, Professor, IILM Institute For Higher Education, Gurgaon, and to my corporate corporate guide guide Mr. Mr. Achutananda Parida AGM, SBI, Main Branch Bhubanesw Bhubaneswar ar,, Mr. Mr. 44
Deepankar Sahoo & Miss. Sanghamitra Tripathy CRE, Personal Banking, SBI, Main Branch, Bhubaneswar, Bhubaneswar, for their sincere guidance and inspiration in completing this project.
I am extremely thankful to the Director, Dean, Chairman and faculties of the IILM Institute for Higher Education for their coordination and cooperation and thankful to Prof. Deepak Tandon for his kind guidance and encouragement.
I am also extremely thankful to all those persons who have positively helped me and customers who responded my questionnaire, around whom the whole project cycle revolves.
I also thank all my friends who have more or less contributed to the preparation of this project report. I will be always indebted to them.
Thanking You
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Executive Summary In the growing global competition, the productivity of any business concern depends upon the behavi behaviora orall aspec aspectt of consum consumers ers.. This This topic topic deals deals with with the custom customer’s er’s perce percepti ption on towards other Advance Product from SBI credit cards at Bhubaneswar. This project report contains 5 different chapters. The report begins with the introduction to company, its area of operation, its organization structure, its achievements, etc.
The second chapter is the introduction to the Advance Product which gives a brief idea regarding ADVANCE ADVANCE PRODUCT of SBI SBI MAIN MAIN BRAN BRANCH CH,, BBSR BBSR wher where e the the proj projec ectt is undertaken. undertaken. It also contains the objectives and limitations of the project.
The third chapter, methodology adopted in preparing this report is mentioned. It covers the sample procedure, types of data used and the data collection method.
The fourth chapter comprehensive coverage of forecasting concepts and techniques which shows the analysis of data through tabulation, computation and graphical representation of data collected from survey.
The fifth chapter deals with the findings, findings, suggestion & conclusion part which is very much important after analysis is made.
As we know that only analysis and conclusion is not the end of a research, so in the sixth chapter the recommendation part is covered which are made after a depth study of the analysis part of thesis.
In each of the five chapters as described above, every chapter has been scheduled in a mann manner er so as to enab enable le the the read reader er to appr apprec ecia iate te the the cont conten ents ts easi easily ly.. The The repo report rt is supported by figures and data wherever necessary with a view to assist the reader in developing a clear cut understanding of the t he topic. 44
I hope this report will be extremely useful for those it is meant. Constructive and healthy suggestions for improvements of the report will be great fully full y appreciated.
Chinmaya Parija
Company
Profile 44
Overview
History
Competitors
Strength/Opportunity Strength/Opportuni ty & Weakness/Threats
Different Products
Awards & Recognitions by SBI
OVERVIEW
State Bank of India is the largest and one of the oldest commercial bank in India, in existence for more than 200 years. The bank provides a full range of corporate, commercial and retail banking services in India. Indian central bank namely Reserve Bank of India (RBI) is the major share holder of the bank with 59.7% stake. The bank is capitalized to the extent e xtent of Rs.646bn with the public holding (other than promoters) at 40.3%. SBI has the largest branch and ATM ATM
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network spread across every corner of India. The bank has a branch network of over 14,000 branches (including subsidiaries). Apart from Indian network it i t also has a network of 73 overseas offices in 30 countries in all time ti me zones, correspondent relationship with 520 International banks in 123 countries. In recent past, SBI has acquired banks in Mauritius, Kenya and Indonesia. The bank had total staff strength of 198,774 as on 31st March, 2006. Of this, 29.51% are officers, 45.19% clerical staff and the remaining 25.30% were sub-staff. The bank is listed on the Bombay Stock Exchange, National Stock Exchange, Kolkata Stock Exchange, Chennai Stock Exchange and Ahmedabad Stock Exchange while its GDRs are listed on the London Stock Exchange. SBI group accounts for around 25% of the total business of the banking industry while it accounts for 35% of the total foreign exchange in India. With this type of strong base, SBI has displayed a continued performance in the last few years in scaling up its efficiency levels. Net Interest Income of the bank has witnessed a CAGR of 13.3% during the last five years. During the same period, net interest margin (NIM) of the bank has gone up from as low as 2.9% in FY02 to 3.40% in FY06 and currently is at 3.32%.
Management The bank has 14 directors on the Board B oard and is responsible for the management of the Bank’s business. The board in addition to monitoring corporate performance also carries out functions such as approving the business plan, reviewing and approving the annual budgets and borrowing limits and fixing exposure limits. Mr. O. P. P. Bhatt is the Chairman of the bank. The five-year term of Mr. Bhatt will expire e xpire in March 2011. 2011. Prior to this appointment, Mr. Bhatt was Managing Director at State Bank of Travancore. Mr. Bhatt has more than 30 years of experience in the Indian banking industry and is seen as futuristic leader in his approach towards technology and customer service. Mr. Mr. Bhatt has had the best of foreign exposure in SBI. We believe that the appointment of Mr. Bhatt would be a key to SBI’s future growth momentum. Mr. Mr. T S Bhattacharya is the Managing Director of the bank and known for his vast experience in the banking industry. Recently, Recently, the senior management of the bank has been broadened considerably considerably.. The positions of CFO and the head of treasury have been segregated, and new heads for rural banking and for corporate development and new business banking have been appointed. The management’s management’s thrust on growth of the bank in terms of network and size would also ensure encouraging prospects in time to come.
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Shareholding & Liquidity (Till 30 th Sept. 2007) Reserve Bank of India is the largest shareholder in the bank with 59.7% stake followed by overseas investors including GDRs with 19.78% stake as on September 06. Indian financial institutions held 12.3% while Indian public held just 8.2% of the stock. RBI is the monetary authority and having majority shareholding reflects conflict of interest. No w the government is rectifying the above error by transferring RBI’s holding to itself. Post this, SBI will have a further headroom to dilute the GOI’s stake from 59.7% to 51.0%, which will further improve its CAR and Tier I ratio.
Key Areas Areas of Operations
The business operations of SBI can be broadly classified into the key income generating areas such as National Banking, International Banking, Corporate Banking, & Treasury operations. operations.
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HISTORY
The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe
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and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of t he Indian economy to the economy of Europe and the global economic framework.
The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.
Group Photograph of Central Board (1921)
Business
The business of the banks was initially initiall y confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs.one Lakh and the period of
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accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, j ewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance b y way of cash credits gained momentum only from the third decade of the nineteenth century. century. All commodities, including tea, sugar and jute, which began to be financed fi nanced later, later, were either pledged or hypothecated h ypothecated to the bank. Demand promissory notes were signed by the borrower in favour of the guarantor, guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, however, forbidden. Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.
First Five Year Plan
In 1951, when the First Five Year Year Plan was launched, the development of rural India was given the highest priority. priority. The commercial banks of the country including i ncluding the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. In order, order, therefore, to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and statesponsored bank by taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. Later, Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates). The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking subserving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the
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Indian banking system into the exciting field of national development.
COMPETITORS
Competitors and other players in the field:Top Performing Perfor ming Public Sector Banks
Andhra Bank Allahabad Bank Punjab National Bank Dena Bank Vijaya Bank
Top Performing Perfor ming Private Sector Banks HDFC Bank ICICI Bank AXIS Bank Kotak Mahindra Bank Centurion Bank of Punjab
Top Performing Foreign Banks 44
Citibank Standard Chartered HSBC Bank ABN AMRO Bank American Express
Strength/ Opportunities:
The growth for SBI in the coming years is likely to be fueled by the following factors:
• Continued effort to increase low cost deposit would ensure improvement in NIMs and hence earnings.
• Growing retail & SMEs thrust would lead to higher business growth.
• Strong economic growth would generate higher demand for funds pursuant to higher corporate demand for credit on account of capacity expansion.
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Weakness/ Threats:
The risks that could ensue to SBI in time to come are as under:
• SBI is currently operating at a lowest CAR. Insufficient I nsufficient capital may restrict the growth prospects of the bank going forward.
• Stiff competition, especially in the retail segment, could impact retail growth of SBI and hence slowdown in earnings growth.
• Contribution of retail credit to total t otal bank credit stood at 26%. Significant thrust on growing retail book poses higher credit risk to the bank.
• Delay in technology upgradation could result in loss of market shares.
• Management indicated a likely pension shortfall on account of AS-15 to be close to Rs50bn.
• Slow down in domestic economy would pose a concern over credit off-take thereby impacting earnings growth.
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DIFFER DIF FERENT ENT PRODU PRODUCT CT S OF SBI: SBI : DEPOSIT
LOANS
CARDS
DIFFERENT CREDIT CARDS
Savings Account
Home Loans
Consumer Cards
SBI International cards
Life Plus Senior Citizens Savings Account
Loan Against Property
Credit Card
SBI Gold cards
Fixed Deposits
Personal Loans
Travel Card
SBI Gold Master cards
Security
Car Car Loan
Debit Cards
Your City Your Cards
Recurring Deposits
Loans against Securities
Commercial Cards
Tax-Saver Fixed Deposit
Two Wheeler
Corporate Cards
Partnership Cards
Salary Account
Preapproved Loans
Prepaid Card
Advantage Woman Savings Account
Retail Asset
Purchase Card
SBI Employee Cards
Rural Savings Account
Farmer Finance
Distribution Cards
People's Savings Account
Business Installment Loans
Business Card
SBI Advantage Cards
Flexi Cash
Merchant
Deposits
Freedom
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Savings Account
Services
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Introduction to Advance Product
SBI Advance Product
Statement Research
the Problem
objectives
Significance
and scope
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Introduction to Advance Product:
Now a day not all the people have the capacity to fulfill their requirement by their own earning, that’s why they need help from others. For this so many government & private sector bank provide them money to fulfill their requirement, that’s call the Advance Product (loan product) of the bank. All the banks have so many different types of advance product as per the requirement of the people or customers. In Bhubaneswar also there are so many banks those provide loan to the people for different causes.
Types of Advance Product
➢ ➢ ➢
Home Loan Educational Loan Car Loan
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➢ ➢ ➢ ➢
Personal Loan Property Loan Loan Against Shares\Debentures Etc.
Now a day a large no. of people are taking loan form different banks. It helps people to fulfill their need and it really easy to repayment the loan amount with a longer repayment period.
SBI Advan Ad vance ce Product Prod uct 44
SBI Home Loans: Purpose Purchase/ Construction of House/ Flat Purchase of a plot of land for construction of House Extension/ repair/ renovation/ alteration of an existing House/ Flat Purchase of Furnishings and Consumer Durables as a part of the project cost. Takeover of an existing loan from other Banks/ Housing Finance Companies. Eligibility Minimum age 18 years as on the date of sanction Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the loan should be fully repaid. Availability of sufficient, regular and continuous source of income for servicing the loan repayment. Loan Amount 40 to 60 times of NMI, depending on repayment capacity as % of NMI as under –
Net Annual Income Upto Rs.2 lacs Above Rs.2 lac to Rs. 5 lacs Above Rs. 5 lacs
EMI/NMI Ratio 40% 50% 55%
To enhance loan eligibility you have option to add: 1. Income of your spouse/ your son/ daughter living with you, provided they have a steady income and his/ her salary account is maintained with SBI. 2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to be rented out.
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3. Depreciation, Depreciation, subject to some conditions. 4. Regular income from all sources
Margin (Special Festival Season Offer)
•
•
Purchase/ Construction of a new House/ Flat/ Pl ot of land: 15% for loans up to Rs. 1 cr., 20% for loans above Rs. 1 cr. Repairs/ Renovation of an existing House/ Flat: 15%
Interest Rates w.e.f 27.2.2008
Floating interest rates (linked to State Bank Advance Rate - SBAR)
(SBAR: 12.25% p.a.)
Loan Tenor -> Upto Rs.30 Lacs Above Rs.30 Lacs
Upto 5 years 2.25% below SBAR, 10.00% p.a. 2.00% below SBAR, 10.25% p.a.
Above 5 years and upto 15 years 2.00% below SBAR, 10.25% p.a. 1.75% below SBAR, 10.50% p.a.
Above 15 years and upto 25 years 1.75% below SBAR, 10.50% p.a. 1.50% below SBAR, 10.75% p.a.
Fixed interest rates
Tenure
Rate of Interest
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(p.a.)*U (p.a.)*Upto 10 years
12.75%
* Fixed rate loans will be subject to: 'force maejure' clause and interest reset at the end of every two years on the basis of fi xed interest rates prevailing then.
CAR LOAN: Purpose You can take finance for: A new car, jeep or Multi Utility Vehicles (MUVs) A used car / jeep (not more than 5 years old). (Any make or model). Take over of existing e xisting loan from other Bank/Financial institution (Conditions apply)
Eligibility To avail an SBI Car Loan, you should be : •
•
Individual between the age of 21-65 years of age. A Permanent Permanent employee of State / Central Government, Public Sector Undertaking, Private company or a reputed establishment or
•
A Professionals Professionals or self-employed individual who is an income tax assessee or
•
A Person engaged in agriculture and allied activities.
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•
Net Annual Income Rs. 100,000/- and above.
Salient Features Loan Amount There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times t he net annual income can be sanctioned. If married, your spouse's income could also be considered provided the spouse becomes a co-borrower in the loan. The loan amount includes finance for one-time road tax, registration and insurance! No ceiling on the loan amount for new cars. Loan amount for used car is subject to a maximum limit of Rs. 15 lacs. Type of Loan 1. Term Term Loan 2. Overdraft - a) For New vehicles only b) Minimum loan amount: Rs. 3 lacs. Documents required you would need to submit the following follo wing documents along with the completed application form if you are an existing SBI account holder: 1. Statement Statement of of Bank accoun accountt of the borrower borrower for for last 12 12 months. months. 2. 2 passpo passport rt size size photog photograph raphs s of borrower(s borrower(s). ). 3. Signature Signature identificati identification on from from bankers bankers of borrower borrower(s). (s). 4. A copy of passpo passport rt /voters /voters ID ID card/P card/PAN AN card. card. 5. Proo Prooff of of res resid iden ence ce.. 6. Latest Latest salary-slip salary-slip showing showing all deduction deductions s 7. I.T. I.T. Returns/Form 16: 2 years for salaried employees employees and 3 years years for professional/selfemployed/businessmen employed/businessmen duly accepted by the ITO wherever applicable to be submitted. 8. Proof of officia officiall address address for non-salari non-salaried ed individua individuals. ls. If you are not an account holder with SBI you would also need to furnish documents that establish your identity and give proof of residence. Margin
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New / Used vehicles: 15% of the on the road price.
Repayment You enjoy the longest repayment period in the industry with us. Repayment period: For Salaried: Maximum of 84 months For Self-employed & Professionals: Maximum 60 months Repayment period for used vehicles :Up to 84 months from the date of original purchase of the vehicle (subject to maximum tenure as above). Prepayment Penalty: Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain conditions FLOATING RATES: A. for Term Loans 1. New Vehicles (Term Loan) Floating only W.E.F. February 27, 2008 Repayment Period
All Centers (SBAR - 12.25%)
Upto 3 years (for loans Rs. 7.5 lac & above)
0.75% below SBAR i.e. 11.50% p.a.
Upto 3 years (for loa loans below Rs. 7.5 lac lac)
0.50% below SBAR i.e. 11.75%p.a.
Above 3 yrs up to 5 yrs (for all loans)
0.50% below SBAR i.e. 11.75% p.a.
Above 5 yrs up to 7 yrs (for all loans)
0.25% below SBAR i.e. 12.00% p.a.
2. Used Vehicles: Floating only W.E.F. February 27, 2008
Repayment Period
All Centers (SBAR-12.25%)
Upto 3 years
3.00% above SBAR i.e. 15.25% p.a.
Above 3 yrs up to 7 yrs
3.25% above SBAR i.e. 15.50% p.a.
B. For Overdrafts: For New Vehicles Vehicles only W.E.F. W.E.F. February 27, 2008
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Repayment Period Upto 3 years (for loans Rs. 7.5 lac & above)
All Centres (SBAR 12.25%) 0.25% below SBAR i.e. 12.00% p.a.
Upto 3 years (for loans below Rs. 7.5 lac)
At SBAR i.e. 12.25% p.a.
Above 3 yrs up to 5 yrs (for all loans)
At SBAR i.e. 12.25% p.a.
Above 5 yrs up to 7 yrs (for all loans)
0.25% above SBAR i.e. 12.50% p.a.
EDUCATION EDUCATION LOAN: A term loan granted to Indian Nationals for pursuing higher education in India or abroad where admission has been secured. Eligible Courses All courses having employment prospects are eligible. •
Graduation courses/ Post graduation courses/ Professional courses
•
Other courses approved by UGC/Government/AICTE etc.
Expenses considered for loan •
Fees payable to college/school/hostel college/school/hostel
•
Examination/Library/Laboratory Examination/Library/Lab oratory fees
•
Purchase of Books/Equipment/Instrumen Books/Equipment/Instruments/Uniforms ts/Uniforms
•
Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course)
•
Travel Expenses/Passage Expenses/Passage money for studies abroad
•
Purchase of computers considered necessary for completion of course
•
Cost of a Two-wheeler Two-wheeler upto Rs. 50,000/-
Any other expenses required to complete the course like study tours, project work etc. Amount of Loan
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•
For studies in India, maximum Rs. 10 lacs
•
Studies abroad, maximum Rs. 20 lacs
Interest Rates (with effect from 1st June 2008) For loans up to Rs.4 lacs - 11.75 11.75 % p.a. Floating For loans above Rs. 4 lacs and upto Rs.7.50 lacs - 13.25 % Floating For loans above Rs.7.50 lacs - 12.25% p.a. Floating Processing Fees •
•
No processing fee/ upfront charges Deposit of Rs. 5000/- for education loan l oan for studies abroad which will be adjusted in the margin money
Repayment Tenure Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier. earlier.
Place of Study
Loan Amount
Repayment in Period Years
Studies in India Studies Abroad
Rs. 10.0 lacs
5- 7
Rs. 20.0 lacs
5- 7
Security
Amount
For loans upto Rs. 10.00 lacs for Studies in India and upto Rs. 20.00 lacs for studies stud ies abroad
Upto Rs. 4 lacs
No Security
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. 7.50 lacs
Collateral security in the form of suitable third party Guarantee. The bank may, may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower" Tangible collateral security of suitable value, along with the assignment of future income of the student For payment of installments.
All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law Margin •
For loans up to Rs.4.0 lacs : No Margin
•
For loans above Rs.4.0 lacs: ○
Studies in India: 5%
○
Studies Abroad: 15%
Documentation Required •
Completed Education Loan Application Form.
•
Mark sheets of last qualifying examination
•
Proof of admission scholarship, studentship etc
•
Schedule of expenses for the specified course
•
2 passport size photographs
•
Borrower's Bank account statement for the last six months
•
Income tax assessment order, of last 2 years
•
Brief statement of assets and liabilities, of the Co-borrower
•
Proof of Income (i.e. Salary slips/ Form 16 etc)
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SBI SARAL PERSONAL LOAN:
Purpose The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or foreign travel, medical treatment of self or a family member, meeting any financial liability, such as marriage of son/daughter, son/daughter, defraying educational expenses of wards, meeting margins for purchase of assets etc.)
Eligibility You are eligible if you are a Salaried individual of good quality corporate, self employed engineer, engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing. Salient Features Loan Amount Your personal loan limit l imit would be determined by your income and repayment capacity. capacity. Minimum: Rs.24,000/- in metro and urban centres Rs.10, 000/- in rural/semi-urban centres Maximum: 12 times Net Monthly Monthly Income for salaried individuals individuals and pensioners subject to a ceiling of Rs.10 lacs in all centres Documents Required Important documents to be furnished while opening a Personal Loan Account: Account:
For existing bank customers Passport size photograph
From salaried individuals Latest salary slip and Form 16 Margin We do not insist on any margin amount. Interest Rates 3.25% above SBAR floating i.e. 15.50% p.a.
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Repayment The loan is repayable in 48 EMI. You You are allowed to pay more than the EMI if you wish to, without attracting any prepayment penalty. penalty. Security NIL Processing Fee Processing charges are 1-2% of the loan amount. This is amongst the lowest fees in the industry. industry. Processing fees have to be paid upfront. There are no hidden costs or other administrative charges.
PROPERTY LOAN: Purpose This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. whatsoever. If amount of loan is Rs.25.00 lacs and above then purpose of loan will have to be specified along with an undertaking that loan will not be used for any speculative purpose whatever including speculation on real estate and equity shares. Eligibility You are eligible if you are: A. An individual who is; a. An Employee or b. A Professional, Professional, self-employed or an income tax assesse or c. Engaged in agricultural and allied activities. B. Your Your Net Monthly Income (salaried) is in i n excess of Rs.12,000/- or Net Annual Income (others) is in excess of Rs.1,50,000/-. The income of the spouse may be added if he/she is a co-borrower or a guarantor. guarantor. C. Maximum age limit: 60 years. Salient Features
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Loan Amount Minimum: Minimum: Rs.25, 000/Maximum: Maximum: Rs.1 crore. The amount is decided by the following calculation: •
•
24 times the net monthly income of salaried persons (Net of all deductions including TDS) OR 2 times the net annual income of others (income as per latest IT return less taxes payable)
Margin We will finance upto 75% of the t he market value of your property. Interest Term Loan 0.75% above SBAR. i.e.13.00% p.a. Floating Repayment Maximum of 60 equated monthly installments, upto 120 months for salaried individuals with check-off facility. facility. You You could opt to divert any surplus funds towards prepayment of the loan without attracting any penalty. Security As per banks extant instructions.
LOAN AGAINST SHARES \ DEBENTURES:
Eligibility This facility is available to our existing individual customers enjoying a strong relationship with SBI. This loan could be availed either singly or as a joint account with spouse in 'Either or Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or Demand Loan. The facility is available at 50 select centers. Salient Features: Purpose For meeting contingencies and needs of personal nature. Loan will be permitted for subscribing to rights or new issue of shares / debentures against the security of existing shares / debentures. Loan will not be sanctioned for (i) speculative purposes (ii) inter-corporate investments or (iii) acquiring controlling interest i n company / companies.
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Loan Amount You can avail of loans up to Rs 20.00 lacs against your shares/debentures. Documents Required You will be required to submit a declaration indicating: Details of loans availed from other banks/ branches for acquiring shares/ debentures. •
•
Details of loans availed from other banks/ branches against security of shares/ debentures
Margin You will need to provide a margin amount of 50% of the prevailing market prices of the shares/ non-convertible debentures being offered as security. security. (The market prices refer to the prices in the Stock Exchanges as reported in the Economic Times.) Interest At SBAR Floating i.e. 12.25% p.a. Repayment Schedule To be liquidated in maximum period of 30 months through a suitable reducing DP programme. In case of a default or if the outstanding is over Rs.20.00 lacs, the shares/debentures will be transferred in the name of the Bank. Security: Pledge of the demat shares/debentures against which overdraft is granted.
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Statement of problem ➢
SBI Main Branch, Bhubaneswar want to know about t he customer perception about the advance product provide by them to the people.
➢
To find out what kind of service provide by the competitors in advance product.
➢
To find out the need of the customer and hence formulate the strategy to level the economy in the society.
➢
How the products are helping the customer.
➢
To know the utility of the product.
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To find out the need of the customer in Bhubaneswar B hubaneswar region and introduce new product or facilitate new service in existing product.
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Research objectives Summer Internship Project gives a practical exposure and helps in acquiring the on road skills.
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First and foremost objective is to find out the reasons for using of Advance Product from SBI. To find out the services that other bank given to their customer. To generate the leads through the survey.
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To sort out the prospective leads from the data I have collected through the survey.
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To build the relation ship with the customers and to follow up them, make sure that they are satisfied with the product.
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To maintain good relationship with the corporate employees.
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To get more references from the customers and generate new leads by following a chain process.
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To place SBI Advance Product ahead of the competitors.
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To find out the customer customer awareness awareness on booming booming Advance Product Product market market and to find out the using patterns of the people
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To make the customer aware of the benefits of the product and convince him to go for SBI Advance Product.
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Significance and scope
The geographical scope of the study is restricted to Bhubaneswar only with sample size of 2000 people.
All the analysis and suggestions are based on the analysis of the both primary and secondary data.
There fore the scope of the study revolves around the following aspects:-
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Consumer perception towards Advance Product
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Consumer awareness about Advance Product scheme and its benefit.
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Aware the Bank about the customer problems, especially in case of automobile sector.
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Research Researc h methodology
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Research methodology Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject in question. The objective is to examine all the issues involved & conduct situ situat atio iona nall analy analysi sis. s. The The meth method odol olog ogy y incl includ udes es the the over overal alll rese resear arch ch desi design gn,, samp samplin ling g procedure procedure & fieldwork fieldwork done & finally finally the analysis procedure procedure.. The methodology methodology used in the study consistent of sample survey using both primary & secondary data. The primary data has been collected with the help of questionnaire as well as personal observation book, magazine; journ journals als have have been been referr referred ed for secon secondary dary data. The questi questionn onnair aire e has has been been drafte drafted d & presented by the researcher himself.
Sample Size:
Sample of 2000 people was taken into study, study, and their data was collected
Sampling Technique:
To study the Project, a Simple Random Sampling technique is used.
Data Collection:
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Collection of data is done by Secondary Data & through
Questionnaire
i.e., Primary data was collected through Questionnaire.
Data Analysis:
After After data data collec collectio tion, n, I’m able able to analyz analyze e custom customer’s er’s views, views, ideas ideas and opini opinions ons related to Advance Product and about SBI Advance Product and from this, SBI will come to know the customer requirements.
Data Interpretation:
Interpretation of data is done by using statistical tools like Pie diagrams, Bar graph graphs, s, and also also using using quanti quantitat tative ive techn techniqu iques es (by using using these these techniques) accurate information is obtained.
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Classification & tabulation of data:
The data data thus thus collec collected ted were were classi classifie fied d accor accordin ding g to the catego categorie ries, s, counti counting ng sheet sheets s & the summar summary y tables tables were were prepa prepared red.. The result resultant ant tables were one dimensional, two dimensional.
Statistical tools used for analysis:
Out of the total respondents, the respondents who responded logically were taken into account while going into statistical details & analysis of data. data. The tools that have have been been used used for analyzin analyzing g data data & infere inference nce drawing are mainly statistical tools like percentage, ranking, averages, etc.
As per questionnaire and market surveys I have find out different responses from different people. According According to their responses I analyze the findings f indings and draw certain remarks.
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Analysis of data
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GRAPHICAL REPRESENTATION OF DATA
Q1. On which bank you depend for your regular transaction? ( )
No. of People SBI
60 % (1200)
ICICI
33 % (660)
HDFC OTHER
5% (100) 2% (40)
TOTAL NO. OF PEOPLE
2000
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It has been observed that approximately 60% correspondents are using the service of SBI for their daily transaction, around 33% of people are using ICICI Bank for their transaction and only 5% & 2% of people are using HDFC & other Bank service respectively in Bhubaneswar. It also shows that SBI have the t he highest market position in Bhubaneswar as per my sample.
Q2. Are you aware of products & services provided by SBI? YES
85% (1700)
NO
15% (300)
Total No. of People
2000
From the above data it is i s clear that most of the customers (around 85%) of Bhubaneswar have the idea about the product & services of SBI, of SBI, the rest 15% have the idea about the t he product they are using. In this 15% most of the people are from typical rural area (Farmers).
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Q3. If yes are you aware of the advance products (Loan segments) of SBI?
YES
95%(1900)
NO
5% (100)
TOTAL NO. OF PEOPLE
2000
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It is clear that most of the people have the idea about the advance advance product product of SBI. Almost Almost all the 95% people who have the idea about the advance product are the user of SBI product & service.
Q4. Which bank you prefer for taking loans?
85% (1800) SBI ICICI
7% (140)
HDFC
2% (40)
OTHER
1% (20)
TOTAL NO. OF PEOPLE
2000
According According to my sample sample size 85% of people people prefer SBI for loan product, product, but some people people prefer ICICI, HDFC or OTHER Bank for loan because they are working with that bank & it is
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easier for them to get loan from their bank & it easier for them to pay the interest because it is less as compare to other bank because they are the employee of that bank.
Q5. If you prefer SBI for taking loan than what influence you to take Loan from SBI?
Most of the people said that they prefer SBI for taking loan because of the transparency and the lowest interest rate for any kind of loan product. And it is easy to get loan from SBI as compare to other bank because less paper work is require and as it is the largest govt. bank in India and having partnership with RBI (Reserve Bank of India) and other association, it is easier for SBI to give loan to people with a longer repayment period.
Q.6 Which loan product of SBI you have used?
HOME LOAN
47% (846)
EDUCATIONAL LOAN
20% (360)
CAR LOAN OTHER
15% (270) 10% (180) 8% (144)
TOTAL NO. OF PEOPLE
1800
PERSONAL LOAN
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From the sample size 85% of people are using the SBI loan product. From the 1800 people 47% of people took home loan from SBI. 20% of people took education loan for their children, 15% of people took car loan from SBI. Some of the customer took 2 type of loan from SBI like both car & educational educational loan and home & car loan. 10% of people took personal personal loan.
Q7. What do you feel about the services providing by SBI in advance product?
Bad Satisfactory
0% (0) 2% (40)
Good
55% (1100)
Excellent
43% (860)
TOTAL NO. OF PEOPLE
2000
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From this it is clear that the service provide by SBI in its advance product is good in between the customer. All of them satisfy with the product provide by SBI. 55% of people said that the service provide by SBI is good & 43% said it is excellent & just 2% of people said that it is satisfactory.
Q8. Which features you like most in Loan segments of SBI?
LESS PAPER WORK
3% (60)
ATTRACTIVE INTEREST RATE
35% (700)
TRANSPARENCY
20% (400)
SIMPLE AND FAST PROCESSING
2% (40)
LONGER REPAYMENT PERIOD
40% (800)
TOTAL NO. OF PEOPLE
2000
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Most of the people like the t he attractive interest rate & l onger repayment period. It’s easier for people to repay the whole loan amount with its interest with low interest rate and with longer repayment period.
Findings Suggestion
& Recommendat Recommendation ion
Conclusion 44
PROJE PRO JECT CT Findin Fin dings gs: ➢
From this project it is found that SBI advance product having the 1 st place in the market at Bhubaneswar, there is a great opportunity to compete with ICICI Bank & to retain its customer by fulfilling the requirement of customer in SBI advance product.
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It has been observed that approximately 85% correspondents are using advance product of SBI and 15% are not using any type of advance product of SBI in Bhubaneswar.
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All of SBI customers are satisfied with the services provided by t he bank.
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Many Many of these these custom customers ers satisfi satisfied ed with with the low intere interest st rate rate and longer longer repayme repayment nt period of the advance product.
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Most of the customers at Bhubaneswar prefer to take loan from SBI.
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Approximately 43% of advance product users said that the service of SBI in advance product is excellent.
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A response response from customer care is so clear & good.
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Many customers have no time to call customer care so that they are not able to know about the service & features of SBI advance product.
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Most customers customers are shifted shifted from other bank’s advance advance product product to SBI because because of hidden charges, high interest rate, less repayment period.
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Government employees are more concern than private employees for advance product.
REASON REA SON S FOR FO R HIGH HI GHL LY USE OF O F SBI ADVANC ADVANCE E PRODU PR ODUCT CT:
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LESS PAPER WORK
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ATTRACTIVE INTEREST RATES
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TRANSPARENCY
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SIMPLE & FAST PROCESSING
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LONGER REPAYMENT PERIOD
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QUICK PROCESSING
Suggest Suggestion ion & Recommen Reco mmendat dation ion Recom Rec omme menda ndati tion on: 44
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Customer awareness programme is required so that more people should attract towards advance product.
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If there are any kind of hidden charges than that must disclose to customer before giving loan to them.
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SBI must take some steps so that customers customers can get their loan in time. Like phone verification by customer care that one customer is got their loan on time or not .It must be before a certain date so necessary steps can be taken.
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SBI should more concern about physical verification rather than phone verification so it will avoid fraud or cheating.
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Advance product selling agents must not give any type of wrong information regarding advance product.
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For the better service new offers would be require.
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SBI custom customer er care care should should more more conce concern rn about about the fastes fastestt settle settlemen mentt of custo customer mer problems.
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Before deducting or charging any monetary charge SBI must consult with customer.
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Agents should be trained, well educated & proper trained to convince the people about different advance product.
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It is the duty of the bank to disclose all the material facts regarding advance product, product, like interest charged, repayment period, other types of charges, etc.
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Special scheme should be implemented to encourage both customer and agents.
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The bank should increase the period for repayment of loan.
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SBI should more focus on Retaining existing customers.
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SBI must focus on Segmentation based on customer knowledge Product offering based on customer demand.
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SBI must take feedbacks of customers regarding features & services .
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Suggestions given by the consumers at the t he time of survey: ➢
There is more time period for repayment of education loan. ( Namrata Das )
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Education loan should be providing to private college also which is not under AICTE or any kind of University. ( Pinaki Bal )
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SBI should take steps to solve customer problems immediately. immediately. ( Gopinath Mahapatra )
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Agents should be trained, well educated & proper trained to convince the people about different advance product. (P.Anish Nath)
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Loan sanction date should be according to customer convenient. (Joytirmaya Behera)
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A customer awareness programme should be taking place in rural area.
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Conclusion From the analysis part it can be conclude that customers have a good respond towards SBI advance products in Bhubaneswar. SBI is in 1 st position having large number of customers & providing good services to them. The bank has a wide customer base, so the bank should concentrate on this to retain these customers.
In present scenario SBI is the largest advance product issuer in India. Within a very short period of time the achievement made by SBI is excellent, what a normal bank cannot expect, but it is being done by SBI. It happens due to employee dedication towards the organization, fastest growing Indian economy, economy, & brand image.
To be the largest advance product issuer, SBI should focus on-
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Launch Innovative product
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Customized advance products
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Better customer services
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Fastest customers problem solving techniques
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Customer retention
Apart from all the above, SBI believe in providing good customer services to their customers which is a key factor for success in future.
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Questionnaire Name - _____________________________________
Occupation-__________________________________
Contact Detail -_______________________________
Q. On which bank you depend for your regular transaction? a) SBI b) IC ICIC ICII Bank Bank c) HDFC HDFC Bank Bank d) Other Bank, Bank, Specify (________ (____________ _____) _)
Q. Are you aware of products & services provided by SBI? a) YES b) N O 44
Q. If yes are you aware of the advance products (Loan segments) of SBI? a) YES b) N O
Q. Which bank you prefer for taking loans? a) SBI b) IC ICIC ICII Bank Bank c) HDFC HDFC Bank Bank d) Other Bank, Bank, Specify (________ (____________ _____) _)
Q. If you prefer SBI for taking loan than what influence you to take Loan from SBI? ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ _____________________________________________________.
Q. Which loan product of SBI you have used? a) Home Home Loan Loan b) Educat Education ion Loan Loan c) Car Loa Loan d) Person Personal al Loa Loan n e) Other Other Loans, Specify Specify ( _________ _____________ _____ _) Q. What do you feel about the services providing by SBI in advance product? a) Bad b) Satisf Satisfact actory ory 44
c) Good d) Exce Excelle llent nt Q. Which features you like most in Loan segments of SBI? a) Less Less paper paper work work b) Attractiv Attractive e interest interest rate rate c) Transpa ransparen rency cy d) Simple & fast fast processi processing ng e) Flexibility Flexibility to choose choose an EMI base base loan or an overdraf overdraftt f) Longer Longer tenure tenure lone lone for for ease ease of repayment repayment g) Specially Specially design product product for self employed employed h) Any other other feature, specify ( _____________ _____________ )
Q. Any suggestion you want to give for the betterment of SBI advance product. ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ___________________________________________________________.
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Bibliography:
Text Books:
Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed. 44
New Jersey: Prentice Hall
Wilson A. (2003), Marketing Marketing Research: An Integrated Approach
Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth Edition
Internet:
www.google.co.in www.sbi.com www.sbi.co.in www.bnet.com
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