Professional Documents
Culture Documents
The Indian economic is growing. There are various factors contributing for the
development of economy. One of the industries which have revolutnize the economy is
banking. Change in the IT & faster growth has changed the banking operations to a great
extent. Banking operations have led to a great development of economy & meeting
customers needs.
Among various sectors that bank is involved, retail banking is one area that has changed
gradually in meeting dynamic needs of customers. I have undertaken my study in area of
retail banking in order to get the basic understanding of banking operations especially
retail banking. As retail banking activity has been changing & very completive in nature
in meeting needs of customers. State bank has been focus on retail banking. The idea of
undertaking this project is to understand the customer’s present expectation from bank &
even to know their perception about retail banking in this competitive banking scenario.
The project title is Study and Awareness Level of Retail Banking (Personal
Banking) Products of SBI Bank, Hubli.
OBJECTIVES:
• To study retail banking Products State Bank Of India, Hubli.
• To know the benefits available by the customers from SBI retail banking
products.
The sample size is 100 and sample units were individuals. The sample area is
limited to Hubli city. The Statistical Tool used is SPSS and Bar diagrams are used for
analyzing and interpretation.
1) The SBI customers are satisfied for using the SBI Retail products of SBI Bank and
are very much influenced by the factors like convenience, rate of interest and
services.
2) The project could help me in understanding different types of retail products and
their information.
3) The perception of the SBI customer relating to retail banking products provided by
SBI bank.
Limitations:
1) The sample size is 100 and findings are based on these samples.
3) There were some difficulties when asked for personal details like cell numbers were
asked.
Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should be
able to meet new challenges posed by the technology and any other external and internal
factors.
For the past three decades India’s banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system
has reached even to the remote corners of the country. This is one of the main reasons for
India’s growth. The government’s regular policy for Indian bank since 1969 has paid rich
dividends with the nationalisation of 14 major private banks of India.
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct phases.
They are as mentioned below:
Early phase from 1786 to 1969 of Indian Banks
Nationalization of Indian Banks and up to 1991 prior to Indian
Banking sector Reforms.
New phase of Indian Banking System with the advent of Indian
Financial & Banking
Sector Reforms after 1991.
The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank. The East India Company established Bank of Bengal
(1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and
called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial
Bank of India was established which started as private shareholders banks, mostly
European shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians,
Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between
1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank,
Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced
periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly
small. To streamline the functioning and activities of banks, mostly small. To streamline
the functioning and activities of commercial banks, the Government of India came up
with The Banking Companies Act, 1949 which was later changed to Banking Regulation
Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was
vested with extensive powers for the supervision of banking in India as the Central
Banking System.
During those days public has lesser confidence in the banks. As an aftermath
deposit mobilisation was slow. Abreast of it the savings bank facility provided by the
Phase II-
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalised Imperial Bank of India with extensive banking
facilities on a large scale specially in rural and semi-urban areas. It formed State Bank of
India to act as the principal agent of RBI and to handle banking transactions of the Union
and state government all over the country.
Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on
19th July 1969, major process of nationalisation was carried out. It was the effort of the
then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the
country were nationalized.Second phase of nationalisation Indian Banking Sector Reform
was carried out in 1980 with seven more banks. This step brought 80% of the banking
segment in India under Government ownership.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
Banking in the sunshine of Government ownership gave the public implicit faith
and immense confidence about the sustainability of these institutions.
Phase III-
This phase has introduced many more products and facilities in the banking sector
in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee
was set up by his name, which worked for the Liberalization of Banking Practices.
The country is flooded with foreign banks and their ATM stations. Efforts are
being put to give a satisfactory service to customers. Phone banking and net banking is
introduced. The entire system became more convenient and swift. Time is given more
importance than money.
The financial system of India has shown a great deal of resilience. It is sheltered
from any crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves
are high, the capital account is not yet fully convertible, and banks and their customers
have limited foreign exchange exposure.
Banking in India originated in the first decade of 18 th century with The General
Bank Of India coming into existence in 1786. This was followed by Bank of Hindustan.
Both these banks are now defunct. The oldest bank in existence in India is the State Bank
Of India being established as “The Bank Of Calcutta” in Calcutta in June 1806. Couple of
Decades later, foreign Banks like HSBC and Credit Lyonnais Started their Calcutta
By 1900, the market expanded with the establishment of banks like Punjab National
Bank in 1895 in Lahore; Bank of India in 1906 in Mumbai-both of which were founded
under private ownership. Indian Banking Sector was formally regulated by Reserve Bank
Of India from 1935. After India’s independence in 1947, the Reserve Bank was
nationalised and given broader powers.
SBI Group-
The Bank of Bengal, which later became the State Bank of India. State Bank of
India with its seven associate banks commands the largest banking resources in India.
Nationalisation-
The next significant milestone in Indian Banking happened in late 1960s when the
then Indira Gandhi government nationalized on 19th July 1949, 14 major commercial
Indian banks followed by nationalisation of 6 more commercial Indian banks in 1980.
The stated reason for the nationalisation was more control of credit delivery. After
this, until 1990s, the nationalised banks grew at a leisurely pace of around 4% also called
as the Hindu growth of the Indian economy.
Liberalization-
In the early 1990’s the then Narasimha rao government embarked a policy of
liberalization and gave licences to a small number of private banks, which came to be
known as New generation tech-savvy banks, which included banks like ICICI and HDFC.
This move along with the rapid growth of the economy of India, kick started the banking
sector in India, which has seen rapid growth with strong contribution from all the sectors
of banks, namely Government banks, Private Banks and Foreign banks. However there
had been a few hiccups for these new banks with many either being taken over like
Global Trust Bank while others like Centurion Bank have found the going tough.
The next stage for the Indian Banking has been set up with the proposed relaxation
in the norms for Foreign Direct Investment, where all Foreign Investors in Banks may be
given voting rights which could exceed the present cap of 10%, at present it has gone up
to 49% with some restrictions.
CURRENT SCENARIO-
With the growth in the Indian economy expected to be strong for quite some time-
especially in its services sector, the demand for banking services-especially retail
banking, mortgages and investment services are expected to be strong. M&As, takeovers,
asset sales and much more action (as it is unraveling in China) will happen on this front
in India.
Banking in India
Reserve Bank of India is the regulating body for the Indian Banking Industry. It is a
mixture of Public sector, Private sector, Co-operative banks and foreign banks. The
private sector banks are further spilt into old banks and new banks.
Scheduled Banks
Not only many financial institution in the world today can claim the antiquity and
majesty of the State Bank Of India founded nearly two centuries ago with primarily intent
of imparting stability to the money market, the bank from its inception mobilized funds
for supporting both the public credit of the companies governments in the three
presidencies of British India and the private credit of the European and India merchants
from about 1860s when the Indian economy book a significant leap forward under the
impulse of quickened world communications and ingenious method of industrial and
agricultural production the Bank became intimately in valued in the financing of
practically and mining activity of the Sub- Continent Although large European and Indian
merchants and manufacturers were undoubtedly thee principal beneficiaries, the small
man never ignored loans as low as Rs.100 were disbursed in agricultural districts against
Adaptation world and the needs of the hour has been one of the strengths of the Bank,
In the post depression exe. For instance – when business opportunities become extremely
restricted, rules laid down in the book of instructions were relined to ensure that good
business did not go post. Yet seldom did the bank contravenes its value as depart from
sound banking principles to retain as expand its business. An innovative array of office,
unknown to the world then, was devised in the form of branches, sub branches, treasury
pay office, pay office, sub pay office and out students to exploit the opportunities of an
expanding economy. New business strategy was also evaded way back in 1937 to render
the best banking service through prompt and courteous attention to customers.
ABOUT LOGO
Togetherness is the theme of this corporate loge of SBI where the world of banking
services meet the ever changing customers needs and establishes a link that is like a
circle, it indicates complete services towards customers. The logo also denotes a bank
that it has prepared to do anything to go to any lengths, for customers.
The blue pointer represent the philosophy of the bank that is always looking for the
growth and newer, more challenging, more promising direction. The key hole indicates
safety and security.
To retain the Bank’s position as premiere Indian Financial Service Group, with world
class standards and significant global committed to excellence in customer, shareholder
and employee satisfaction and to play a leading role in expanding and diversifying
financial service sectors while containing emphasis on its development banking rule.
VISION STATEMENT:
♦ Premier Indian Financial Service Group with prospective world-class
Standards of efficiency and professionalism and institutional values.
VALUES:
♦ Excellence in customer service
♦ Profit orientation
♦ Belonging commitment to Bank
♦ Fairness in all dealings and relations
♦ Risk taking and innovative
♦ Team playing
ORGANISATION STRUCTURE
MANAGING DIRECTOR
Zonal officers
Functional Heads
Regional officers
MD & GE (CB)
3 Shri S.K. Bhattacharyya 19(b)
MD & CC&RO
4 Shri Suman Kumar Bery 19(c)
For several years, banks viewed consumer loans with skepticism. Commercial
loans dominated the banks portfolio as they generate high net yields with low credit risk.
Consumer loans in contrast involved smaller amounts, large staff to handle accounts and
high default rates. They were considered substandard by the banks. Even the regulators
across the globe have not encouraged consumer finance till very recently. However, over
the past few years, fierce competition among the banks lowered the spreads and
profitability on commercial loans. With deregulation and increase in consumer loan rates,
the risk-adjusted returns in retail sector have exceeded the returns on commercial loans.
The growth in retail banking has been facilitated by the growth in banking technology
and automation of banking processes that enable extension of reach and rationalization of
costs. ATM’s have emerged as an alternative banking channel, which facilitate low cost
transaction vis-à-vis traditional branches. It also has the advantage of reducing the branch
traffic and enable banks with small networks to upset the traditional disadvantages by
increasing their reach and spread.
The retail banking industry is diverse and competitive. In addition, to checking and
savings account services, banks offer brokerage and insurance capabilities to manage all
aspects of a customer’s financial portfolio. Attracting profitable customers from
competitors is essential for long-term success. Retail banking has both pros and cons. In
the present situation, the bankers have very little option, but to chant ‘retail mantra’.
Banks today face complex challenges on multiple fronts. Customer expectations are
higher then ever, with growing demand for more rapid service delivery and more flexible,
personalized interaction.
The stagnation in Indian economy has resulted in poor credit absorption both for long
term funding to big-ticket projects as well as working capital. The slow down could be
attributed to lack of credit off-take by the industrial sector even as food credit continued
to search. This has resulted in limited lending opportunities to banks. Major portion of the
loans raised by corporates were to replace the existing high cost funding and is more in
the nature of arbitraging on the interest rates with various banks. The loan products to
corporate with strong financial are now almost linked to prices of government securities-
or mark up over government paper. More over, big corporates are bypassing banks and
rising money through the debt market and commercial papers, which are cheaper than
bank credit. Therefore banks are being forced to look at the mid corporates.
The tough macro economic environment, increasing risk profile and low yield indicate
that corporate banking has entered the maturity face. To survive and prosper amid the
rapid changes that continue to redefine financial services market place ,banks hitherto
concentrating on corporate borrowers are embarking now on a strategy driven by retail
banking and fee based income in order to maintain asset growth and profitability. The
ratio of non interest income to total funds has already increased for some banks.
The ratio of retail credit to net credit at the global level is around 5%.In India it is
interesting to note that this ratio is over 10% as on 31st march 2002 with the economic
reforms set in motion, the country is already rated as a major hub for economic
development. Increases in per capita income, changes in life style and growing
urbanization have made the Indian population raise from oblivion and resurge in a
For banks, retail segment is the principle growth driver as they are gaining slowly gaining
market share in the retail space. The retail asset portfolio of banks has grown
substantially during 2001-2002.Foreign banks are also securitizing vehicle loans to raise
off-balance sheet resources and reducing the over all cost of funding. For ex: Bank of
Muscat is taking over auto loans from other banks signaling a softer interest rate regime
for consumer finance and giving an indication to the intensifying competition in business.
The new bank like ICICI bank Ltd, HDFC bank Ltd... Etc are striving to position
themselves as one stop financial shops. These bank have tied up with computer training
companies computer manufacturers, internet services providers and portals for expanding
their net banking services and winding their customer base.
The race for market supremacy is compelling banks in India to adopt the largest
technology on the internet in a bid to capture new markets and customers. HDFC Bank
Ltd with its ‘Freedom the e-Age saving Account’ service, Citibank with ‘Suvidha’ and
ICICI Bank Ltd. With its ‘Mobile Commerce’ service have tied up with cell phone
operators to offer Mobile Banking to their customer. Under mobile banking services,
customers can scan their accounts to seek balance and payments status or instruct banks
to issue cheques, pay bills or deliver statements of accounts. It was estimated that by
2003, cellular phones will have become the premier internet access device, outselling
personal computers. Mobile banking will further minimize the need to visit a bank
branch.
State Bank of India offers a wide range of services in the Personal Banking Segment
which are indexed here.
Click on each of them to access the details. Our products are designed with flexibility to
suit your personal requirements. Enjoy 24 hour facility through our ATMs - growing
speedily it has crossed the 5000 mark Watch this space for more details.
Now you can earn a higher income on your surplus funds by investing those with us. We
provide security, trust and competitive rate of interest.
Flexibility in period of term deposit from 7 days to 10 years.
Affordable Low Minimum Deposit Amount: You can open a term deposit with
SBI for a nominal amount of Rs.1000/- only.
Please check our Interest Rates online or simply email through our Helpline.
Flexibility in choosing the amount you wish to invest and the maturity period.
Highlights
Safety - We understand the value of your hard earned money and continue to deliver on
our promise of safety and security over 200 years.
Liquidity
Loan /overdraft facility: You can avail a loan/overdraft against your deposit.SBI
provides you loan / overdraft upto 90% of your deposit amount at nominal cost.So you
Premature Withdrawal
Interest to be charged on premature withdrawal of term deposits at 0.5% below the rate
applicable for the period deposit has remained with the Bank.
Automatic Renewals
Flexibility to convert your Special Term Deposit to Term Deposit and vice versa
You can convert your special Term Deposit to a Term Deposit to receive
monthly/quarterly interest payments to match your financial requirements.
You can also convert your Term Deposit to a Special Term Deposit, which
provides compounded rate of interest to multiply your money faster.
RECURRING DEPOSIT
Want to create a fund for your children's education or marriage or to buy a car or for a
dream holiday? Whatever may be your financial goals, through our Recurring Deposit
Scheme you can save a little every month so that at the time of need you have sufficient
funds to achieve your financial goals. Recurring Deposit provides you the element of
compulsion to save at high rates of interest applicable to Term Deposits along with
liquidity to access that savings any time. So set aside a small amount every month and
earn at compounded rates of interest.
• Liquidity
Loan /overdraft facility: You can avail a loan/overdraft against your deposit.SBI
provides you loan / overdraft upto 90% of your deposit amount at nominal cost.So
you continue to earn interest in your deposit and still can meet your urgent
financial requirements.
• Transferability
Other Benefits
Unique features:
*Provision to finance cost of furnishing and consumer durables as part of project cost
*Optional Group Insurance from SBI Life at Concessional premium (Upfront premium
financed as part of project cost)
*Interest calculated on daily reducing balance basis, and starts from the date of
disbursement.
‘Plus’ schemes which offer attractive packages with concessional interest rates to Govt.
*Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban
Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat
Personal loan at attractive rates under SBI Home Plus scheme tailored exclusively
for SBI Home Loan customers.
Purpose
Eligibility
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
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.
3. Depreciation, subject to some conditions and Regular income from all sources.
Interest
Processing Fee (Special Festival Season Offer)
.25% of Loan amount with a cap of Rs.5,000/-(including Service Tax)
Pre-closure Penalty
No penalty if the loan is preclosed from own savings/windfall gains for which
documentary evidence is produced by the customer.
Security
Moratorium
Upto 18 months from the date of disbursement of first instalment or 2 months after final
disbursement in respect of loans for construction of new house/ flat (moratorium period
will be included in the maximum repayment period)
Disbursement
In lump sum direct in favour of the builder/ seller in respect of outright purchase
Documents
A customized product designed to enable borrowers to hedge their Home Loan against
unfavorable movement in interest rates. The product gives you a one time irrevocable
option to choose one of the three customized combinations of fixed and floating interest
rates and also to choose the order in which the fixed and floating rate will be availed.
An innovative and customer-friendly product to enable you to earn optimal yield on your
savings and minimize interest burden on Home Loans, with no extra cost.
The loan is granted as an Overdraft facility with the added flexibility for you to operate
your Home Loan Account like your SB or Current Account.
The product serves to minimize your interest cost by enabling you to park your surplus
funds in ‘SBI-Maxgain’ (with the benefit to withdraw the surplus funds whenever you
require), specially in the wake of low yields from other deposit/ investment avenues.
Minimum Loan Amount: Rs.5 lacs
A unique product if you are on the look out for a loan to purchase a plot of land for
house construction. The loan is available for a maximum amount of Rs.20 lacs and with a
comfortable repayment period of upto 15 years.
You are also eligible to avail another Housing Loan for construction of house on the plot
financed above with the benefit of running both the loans concurrently.
(House construction should commence within 2 years from the date of availment of ‘SBI-
A revolutionary product designed for customers who are on the look out for a source of
finance for a property they want to invest in without mortgaging the same. All you have
to do is pledge any financial security that you have and you will get a Home Loan for
your dream home.
A must-take for those who do not want to pay stamp duty for mortgage of their property
or go through the hassles of creation of mortgage.
You also have an option to take the loan by way of mortgage of the property and pledge
financial securities in lieu of margin money.
Repayment is highly customized, giving you the option to repay through regular EMIs or
through maturity proceeds of the securities pledged.
Innovative and value added products extended to existing Home loan borrowers with a
satisfactory repayment record of 3 years and whose loan is Standard Asset, with a view to
reinforce the customer loyalty and to maintain long term relationship with the borrowers.
In case of take-over of Home Loans from other Banks/HFCs, the borrower should have
fulfilled the above conditions with the present Bank/HFC.
Purpose
‘SBI-Optima’ Additional Home Loans to meet expenditure towards major repair,
renovation, addition to their house/flat, purchase
of furniture, fixtures and consumer durables
‘SBI-Homeline’ Special Personal General purpose loan to meet expenditure to
Loans meet forseen/unforeseen contingencies
Eligibility
Inbuilt provision for availment of the loans on the expiry of each bloc of 5 years,
the first bloc commencing on the expiry of 5 years from the date of sanction of
original Home Loan.
Original Home Loan and all ‘SBI-Optima’ Home Loans/’SBI-Homeline’ Personal
Loans can run concurrently
Comfortable repayment obligations – Tenure of the loans equal to the residual
maturity of the original Home Loans –
Move ahead in life with SBI Car Loans! If you have been putting off purchasing that Car,
we invite you to go through our Car Loan Scheme.
Finance to include vehicle registration charges, insurance, one-time road tax and
accessories (subject to conditions).
Well, what are you waiting for? Just contact any of our branches (more than 6000) that
offer Car Loans or our Personal Banking Branches and give wheels to your desire!
• A new car, jeep, Multi Utility Vehicle (MUV) or SUV (any make or model)
• A used car / jeep / MUV /SUV (not more than 5 years old). (any make or model)
Excellent service and lower costs. A quick survey of similar schemes available elsewhere
and you will find that SBI Car Loans for new and old vehicles offer you :
The Scheme
Purpose
You can take finance for:
A used car / jeep (not more than 5 years old). (Any make or model).
Take over of existing loan from other Bank/Financial institution (Conditions apply)
Eligibility
Salient Features
There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5
times the net annual income can be sanctioned. If married, your spouse's income could
also be considered provided the spouse becomes a co-borrower in the loan. The loan
amount includes finance for one-time road tax, registration and insurance. No ceiling on
the loan amount for new cars .Loan amount for used car is subject to a maximum limit
of Rs. 15 lacs.
Type of Loan
1. 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 documents along with the completed application
form if you are an existing SBI account holder:
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.
Interest
Processing Fee
EDUCATION LOAN
A term loan granted to Indian Nationals for pursuing higher education in India or abroad
where admission has been secured.
Eligible Courses
Any other expenses required to complete the course like study tours, project work etc.
Amount of Loan
Interest Rate
For loans upto Rs.4 lacs - 12.75% p.a. Floating
For loans above Rs.4 lacs - 13.75% p.a. Floating
Processing Fees
Repayment Tenure
Repayment will commence one year after completion of course or 6 months after
securing a job, whichever is earlier.
Margin
Security
Documentation Required
LOAN TO PENSIONERS
If you are a Central or State Government pensioner drawing your pension through one of
our branches and are not more than 72 years of age, you can avail of a loan from your
branch to meet your personal expenses. We understand you may have an urgent or
unexpected need for funds or a family obligation to be fulfilled and appreciate your
association with us. You can avail a loan of up to a maximum of 12 months pension,
subject to a ceiling of Rs.1,00,000. The documentation is easy.
The loan may be repaid over 5 years and will carry a low interest rate of 13.25% p.a.
There are no processing fees, no hidden costs and no prepayment penalties. Whenever
you have some surplus funds, you can credit your loan account, thereby reducing your
loan liability and interest burden.
Margin and Security: Margin is NIL and The spouse eligible for family pension should
guarantee the loan or any other family member or a third party worth the loan amount.
Repayment:
60 Equated Monthly Instalments (EMIs) – if age of Pensioner at the time of loan sanction
is upto 70 years
48 Equated Monthly Instalments (EMIs) – if age of Pensioner at the time of sanction is
between 70 – 72 years
Rate of Interest:
0.50% above SBAR Floating i.e. 13.25% p.a.
Authorised Branches:
All branches maintaining pension accounts. The facility is available only from the branch
which is maintaining pension account of the applicant.
PROPERTY LOAN
A dream come true! An ALL PURPOSE LOAN for anything that life throws up at
Customer! Do you need funds for a Marriage ceremony, want to take your family to a
well-deserved holiday or for a sudden medical emergency? Customer have some
property, but would rather not sell it? Then why not avail of this ALL PURPOSE LOAN
from SBI? SBI now makes it very much possible for you to only keep your property but
also have liquid funds.
Purpose
This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If
amount of loan is Rs.25.00 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
A. An individual who is;
a. An Employee or
b. A Professional, self-employed or an income tax assessee or
c. Engaged in agricultural and allied activities.
Salient Features
Loan Amount
• 24 times the net monthly income of salaried persons (Net of all deductions including
TDS) OR
• 2 times the net annual income of others (income as per latest IT return less taxes
payable)
Margin
SBI will finance upto 75% of the market value of your property.
Interest
Term Loan 0.75% above SBAR. i.e.13.50% p.a. Floating
Repayment
Maximum of 60 equated monthly instalments, upto 120 months for salaried individuals
with check-off facility. You could opt to divert any surplus funds towards prepayment of
the loan without attracting any penalty and Security, As per banks extant instructions.
A dream come true! An ALL PURPOSE LOAN for anything that life throws up at you!!
Do you need funds for a Marriage ceremony, want to take your family to a well-deserved
holiday or for a sudden medical emergency? You have some property, but would rather
not sell it? Then why not avail of this ALL PURPOSE LOAN from SBI? SBI now makes
it very much possible for you to only keep your property but also have liquid funds.
Purpose
Eligibility
You are eligible if you are:
B. Your Net Monthly Income (salaried) is in 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.
Minimum: Rs.25,000/-
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)
Repayment
Maximum of 60 equated monthly instalments, upto 120 months for salaried individuals
with check-off facility. You could opt to divert any surplus funds towards prepayment of
the loan without attracting any penalty.
Do you need urgent cash but you don't wish to sell or liquidate your holding of shares?
Leverage your investments in shares, debentures, public sector bonds and Government
securities for loans to meet unforeseen expenses!! You need not miss out on the next
stock market boom!!
Avail of loans up to Rs.20.00 lacs against your shares/debentures to enable you to meet
contingencies, personal needs or even for subscribing to rights or new issue of shares.
The Scheme
Eligibility
This facility is available to our existing individual customers enjoying a strong
relationship with SBI. This loan could be availed either singly or as a joint account with
spouse in 'Either or Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or
Demand Loan. The facility is available at 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 in company / companies.
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.
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. (The market prices refer to
the prices in the Stock Exchanges as reported in the Economic Times.)At SBAR Floating
i.e. 12.75% 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.
Coverage
Scheme is available at select branches at 50 centres.
(i) The equity shares and debentures offered as security should be fully paid. Preference
shares will not be acceptable as security
(iii) The share/ debenture should be of a company listed in BSE 100 Index, except those
of SBI (list of BSE 100 Index companies is available on www.bseindia.com).
(iv) The market price of the security should not have fallen below par for preceding 52
weeks.
(v) The market price of the security should not be as variance with the arithmetical
average of preceding 52 weeks high and low by more than 25% in downward direction.
(vi) ( P/E ratio of the company should not exceed 40 as published in Economic Times. In
case P/E ratio is not available the shares/ debentures of the company should not be
accepted as security.
(vii) The total number of shares of the company traded on NSE and BSE should exceed
25000 on the day of financing and on each preceding 2 days.
(viii) Security where the market price 52 week high is 4 times of the 52 week low should
Rating
Debentures must have been rated 'AA+' or higher by CRISIL or equivalent rating by any
other reputed rating agency like ICRA etc.
Repayment
Declaration
Details of loans availed of by them from other banks/ branches for acquiring
shares/ debentures
Details of loans availed from other banks/ branches against security of shares/
debentures
Transfer of shares
Shares/debentures will be transferred in the name of the Bank when there is a default and
the outstanding is over Rs.20 lacs.
RENT PLUS
Eligible customer
Owners of residential buildings and commercial properties in Rural/Semi-
urban/Urban/Metro areas which are to be rented or already rented to MNCs/ Banks/
Large & medium size corporate.
Purpose
To meet liquidity mis-match of the applicants.
Quantum of finance
Min. Rs. 50,000.00
Max. Rs. 5 crore for properties located at Non-Metro Centres and Rs. 7.50 crores for
properties located at Metro Centres. There will be no differentiation on the basis of
constitution of the applicant.
.
Primary Security
Assignment of receivables and recording of power attorney with the lessee is a must.
Collateral Security
i) First charge on buildings against the rentals of which the loan would be sanctioned
(value of the property should be double the amount of loan) or any other acceptable
property of equal value.
iii) In case of partnership firm, personal guarantee of the partners of the building. In case
of company personal guarantee of directors to be obtained.
Insurance: The amount of insurance should cover the value of assets charged to the
Bank.
MEDI-PLUS SCHEME
For spreading smiles and cheers on the faces of our customers…, we've launched a new
loan scheme keeping specialized medical treatments in mind - a scheme that we call Medi
Plus!
The Scheme
The Specialised Medical Treatments, not only do the cost implications run into several
lakhs of rupees, but more often than not, these liquid funds also need to be generated at a
very short notice, in order to be able to make prompt hospital bill payments… With this
in mind, Medi Plus is specially designed to make life simpler for you under what could
well be trying circumstances.
You may avail of loans under the Medi Plus Scheme to cover the cost of treatments such
as:
• Corneal Implant
• Orthodontic Treatment (fixed tooth implant)
• Ilazirav Technique of lengthening a limb
• Congenital heart surgery
• Angioplasty
• Heart Valve Replacement Surgery
Purpose
Loan for individuals to avail specialised expensive medical treatment e.g. coronary by-
pass, Hip and Knee replacement surgery, cochlear implants (surgical) for the hearing
impaired etc.
Eligibility
The loan amounts range from a minimum of Rs.50, 000/- to a maximum of 12 months
Once sanctioned, the loan is disbursed by the issuance of a draft/ banker's cheque,
favouring the hospital, where the treatment is being undertaken or where it's proposed to
be undertaken.
Authorised branches are pleased to inform customers that currently, The Medi plus
Scheme is being offered at:
Processing Fee: 0.50% of the entire loan amount, If the applicant already maintain a
regular Housing Loan Account with us the processing fee is waived.
List of Diseases
INTEREST RATES
State Bank of India provides information on the various Interest rates offered by it on
various loans and deposit schemes
Study and Awareness Level of Retail Banking (Personal Banking) Products of SBI Bank,
Hubli
OBJECTIVES:
• To study retail banking.
METHODOLOGY
Following are the sources of data collection for fulfilling any objectives.
Primary data
Secondary data
www.sbi.com.
www.investopedia.com.
Company manuals.
Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 77 77.0 77.0 77.0
No 23 23.0 23.0 100.0
Total 100 100.0 100.0
100
80
77
60
40
20 23
Frequency
0
Yes No
Among 100 respondents 77 are SBI Customers and have different accounts and have
transactions in SBI Bank.
2(i)Which are the retail banking products you deal with SBI(savings A/C)
Cumulative
Frequency Percent Valid Percent Percent
Valid No 24 24.0 24.0 24.0
Yes 76 76.0 76.0 100.0
Total 100 100.0 100.0
80
76
60
40
24
20
Frequency
0
No Yes
76% of the customer the respondent have got savings account in SBI Bank and remaining
24% of them use other accounts.
2(ii) Which are the retail banking products you deal with SBI(FD).
Cumulative
Frequency Percent Valid Percent Percent
Valid No 73 73.0 73.0 73.0
Yes 27 27.0 27.0 100.0
Total 100 100.0 100.0
80
73
60
40
27
20
Frequency
0
No Yes
27% of the respondents have deposits in Fixed Deposits. There are less respondents
in case of Fixed deposit because it is kept for long time which will be fixed.
2(iii) Which are the retail banking products you deal with SBI (Home
loan).
Cumulative
Frequency Percent Valid Percent Percent
Valid No 86 86.0 86.0 86.0
Yes 14 14.0 14.0 100.0
Total 100 100.0 100.0
100
86
80
60
40
20
Frequency
14
0
No Yes
Only 14% of the respondents have Borrowed for Loan for Construction of Home, i.e
Home Loan.
2(iv) Which are the retail banking products you deal with SBI (Edu loan).
Cumulative
Frequency Percent Valid Percent Percent
Valid No 97 97.0 97.0 97.0
Yes 3 3.0 3.0 100.0
Total 100 100.0 100.0
120
100
97
80
60
40
Frequency
20
0
No Yes
Few of them i.e 3% have taken education loan in SBI Bank and remaining have either
deposited or borrowed loan for some other purpose.
2(v) Which are the retail banking products you deal with SBI(Debit Card).
Cumulative
Frequency Percent Valid Percent Percent
Valid No 60 60.0 60.0 60.0
Yes 40 40.0 40.0 100.0
Total 100 100.0 100.0
70
60
60
50
40
40
30
20
Frequency
10
0
No Yes
There are 40% of the customer who are using Debit cards and 60% of them don’t use
Debit card.
2(vii)Which are the retail banking products you deal with SBI(Auto loan)
Cumulative
Frequency Percent Valid Percent Percent
Valid No 95 95.0 95.0 95.0
Yes 5 5.0 5.0 100.0
Total 100 100.0 100.0
120
100
95
80
60
40
Frequency
20
0 5
No Yes
Only 5% among the respondents have borrowed Auto loan. There are less people
who go for auto loan.
2(viii)Which are the retail banking products you deal with SBI(Gold Loan)
Cumulative
Frequency Percent Valid Percent Percent
Valid No 99 99.0 99.0 99.0
Yes 1 1.0 1.0 100.0
Total 100 100.0 100.0
120
100
99
80
60
40
Frequency
20
0
No Yes
There is less response in case of Gold loan as people don’t want to borrow on the bases of
Gold.
Cumulative
Frequency Percent Valid Percent Percent
Valid Good 51 51.0 66.2 66.2
Moderate 26 26.0 33.8 100.0
Total 77 77.0 100.0
Missing System 23 23.0
Total 100 100.0
60
50 51
40
30
26
20
Frequency
10
0
Good Moderate
There is good response regarding the rate of return. Many of the respondents have said
that the rate of return is good i.e 51% and 26% have said it as moderate.
4(a)The factors that made you to become a part of the SBI(Convenience).
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 26 26.0 33.8 33.8
Good 37 37.0 48.1 81.8
Ok 14 14.0 18.2 100.0
Total 77 77.0 100.0
Missing System 23 23.0
Total 100 100.0
40
37
30
26
20
14
10
Frequency
0
Very Good Good Ok
The main factor for some customer is Convenience where 26% of them have said Very
Good, 37% have said Good and remaining i.e 14% said it Ok i.e Moderate.
4(b) The factors that made you to become a part of the SBI(Service).
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 19 19.0 24.7 24.7
Good 43 43.0 55.8 80.5
Ok 15 15.0 19.5 100.0
Total 77 77.0 100.0
Missing System 23 23.0
Total 100 100.0
50
43
40
30
20
19
15
10
Frequency
0
Very Good Good Ok
43% Respondents have said that the service is the first factor which made them to open
account in SBI Bank. The other 19% of them have said very good for the service given
and 15% have said its Ok.
4(c)The factors that made you to become a part of the SBI(Int Rates)
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 5 5.0 6.5 6.5
Good 28 28.0 36.4 42.9
Ok 44 44.0 57.1 100.0
Total 77 77.0 100.0
Missing System 23 23.0
Total 100 100.0
50
44
40
30
28
20
10
Frequency
5
0
Very Good Good Ok
The Interest rate is Moderate for 44%,28% have said its Good and remaining 5% have
said the interest as very good.
4(d)The factors that made you to become a part of the SBI(Loan facilities).
Cumulative
Frequency Percent Valid Percent Percent
Valid Very Good 9 9.0 11.7 11.7
Good 32 32.0 41.6 53.2
Ok 36 36.0 46.8 100.0
Total 77 77.0 100.0
Missing System 23 23.0
Total 100 100.0
40
36
32
30
20
10
9
Frequency
0
Very Good Good Ok
The Loan facility is also the factor, which influenced to transact with SBI Bank, and 36%
have said is Ok, 32% respondents have said Good and remaining 9% have said it as Very
Good.
Cumulative
Frequency Percent Valid Percent Percent
Valid Quick 32 32.0 41.6 41.6
Moderate 43 43.0 55.8 97.4
Slow 2 2.0 2.6 100.0
Total 77 77.0 100.0
Missing System 23 23.0
Total 100 100.0
50
43
40
30 32
20
10
Frequency
0
Quick Moderate Slow
43% of the respondents say that the transactions are Moderate, 32% is Quick and
remaining 2% say it as slow.
6 How will you get to know about SBI retail Banking facilities or the offers.
Cumulative
Frequency Percent Valid Percent Percent
Valid News Paper 40 40.0 51.9 51.9
Website 17 17.0 22.1 74.0
TV Advertisement 18 18.0 23.4 97.4
Any Other 2 2.0 2.6 100.0
Total 77 77.0 100.0
Missing System 23 23.0
Total 100 100.0
50
40
40
30
20
18
17
10
Frequency
0
News Paper T V Advertisement
Website Any Other
The Products and Offers of SBI Bank are known through Newspapers which we can see
in the above Bar diagram 40%.17% from Websites, TV advertisement is 18% from which
public is aware of SBI Products and Offers.
7(i)How frequently you use the retail banking products(savings A/C)
Cumulative
Frequency Percent Valid Percent Percent
Valid Weekly 29 29.0 39.7 39.7
Monthly 39 39.0 53.4 93.2
Quarterly 4 4.0 5.5 98.6
Yearly 1 1.0 1.4 100.0
Total 73 73.0 100.0
Missing System 27 27.0
Total 100 100.0
50
40
39
30
29
20
10
Frequency
4
0
Weekly Monthly Quarterly Yearly
39% of the respondents who are having Savings Account in SBI Bank visit
monthly.29% visit weekly, 4% visit Quarterly.
Cumulative
Frequency Percent Valid Percent Percent
Valid Weekly 3 3.0 9.7 9.7
Monthly 3 3.0 9.7 19.4
Quarterly 4 4.0 12.9 32.3
Yearly 21 21.0 67.7 100.0
Total 31 31.0 100.0
Missing System 69 69.0
Total 100 100.0
30
20 21
10
Frequency
4
3 3
0
Weekly Monthly Quarterly Yearly
21% of the respondents visit bank to know about their balance yearly and
there are respondent who visit Weekly, Monthly and Quarterly where the percentage is
3%, 3% and 4% respectively.
Cumulative
Frequency Percent Valid Percent Percent
Valid Monthly 4 4.0 28.6 28.6
Quarterly 2 2.0 14.3 42.9
Yearly 8 8.0 57.1 100.0
Total 14 14.0 100.0
Missing System 86 86.0
Total 100 100.0
10
8
8
4
4
2
Frequency
0
Monthly Quarterly Yearly
Some of the respondent said that they will visit Yearly to pay the interest which is 8%,
2% of the respondent said they will visit Quarterly and remaining 4% Monthly..
Cumulative
Frequency Percent Valid Percent Percent
Valid Quarterly 1 1.0 50.0 50.0
Yearly 1 1.0 50.0 100.0
Total 2 2.0 100.0
Missing System 98 98.0
Total 100 100.0
1.2
1.0
1.0 1.0
.8
.6
.4
Frequency
.2
0.0
Quarterly Yearly
The respondents of Education Loan visit SBI Bank Quarterly or Yearly on the basis of
terms and conditions.
7(v)How frequently you use the retail banking products(Debit Card).
Cumulative
Frequency Percent Valid Percent Percent
Valid Weekly 30 30.0 81.1 81.1
Monthly 6 6.0 16.2 97.3
Quarterly 1 1.0 2.7 100.0
Total 37 37.0 100.0
Missing System 63 63.0
Total 100 100.0
40
30
30
20
10
Frequency
0
Weekly Monthly Quarterly
30% of SBI customers use it weekly and 6% of them use monthly and remaining 1%
quarterly.
Cumulative
Frequency Percent Valid Percent Percent
Valid Yearly 5 5.0 100.0 100.0
Missing System 95 95.0
Total 100 100.0
6
5
5
1
Frequency
0
Y early
For Auto loan 5% of the respondents visit SBI bank yearly to pay the interest.
Cumulative
Frequency Percent Valid Percent Percent
Valid Good 30 30.0 39.5 39.5
Moderate 46 46.0 60.5 100.0
Total 76 76.0 100.0
Missing System 24 24.0
Total 100 100.0
50
46
40
30
30
20
10
Frequency
0
Good Moderate
46% of the respondents say that the interest on Borrowings is Moderate and 30% of them
say, interest rate is Good.
9. How do you rank SBI retail Banking.
Cumulative
Frequency Percent Valid Percent Percent
Valid Best 13 13.0 16.7 16.7
Good 57 57.0 73.1 89.7
Moderate 8 8.0 10.3 100.0
Total 78 78.0 100.0
Missing System 22 22.0
Total 100 100.0
60
57
50
40
30
20
13
Frequency
10
8
0
Best Good Moderate
The SBI customer Rank the SBI products as shown in the above chart. 57% of them say
the retail products of SBI are Good, 13% rank them as Best and remaining 8% rank it as
Moderate.
Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 8 8.0 34.8 34.8
No 15 15.0 65.2 100.0
Total 23 23.0 100.0
Missing System 77 77.0
Total 100 100.0
16
15
14
12
10
8
8
4
Frequency
0
Yes No
Among the respondent 8% said they wish to open accounts or want to deal with retailing
products of SBI bank where as others don’t want to open account , because they already
have accounts in other banks.
FINDINGS
1) The SBI customers are satisfied for using the SBI Retail products of SBI Bank and
are very much influenced by the factors like convenience, rate of interest and
services.
2) The project could help me in understanding different types of retail products and
their information.
3) The perception of the SBI customer relating to retail banking products provided by
SBI bank.
4) The awareness of Retail Banking Products of SBI Bank through the different
Medias like TV advertisements, News Papers.
5) The terms, conditions and Interest rates of the Retail Banking Products which as a
customer should know while using the retail products of SBI Bank .
RECOMMENDATIONS
1) The costumers are aware of only few products of SBI Retail Banking products. So
bank should provide the information regarding the availability of the products.
2) Disbursement of loans should be quickly done as and when required.
3) There are many People who don’t know about On-Line Banking, so bank should
help to know about the operations and facilities.
4) The bank should provide information relating to Interest. They should help to
know how floating or fixed rate of interest is charged and the terms and
conditions.
LIMITATIONS
1. The sample size is 100 and findings are based on these samples.
5. There were some difficulties when asked for personal details like cell numbers
were asked.
Conclusion:
Most of the customers are aware of few SBI retail banking products like Home Loan,
Savings Account, Education loan and they are not aware of products like Loan against
Shares & Debentures, Loan against Mortgage of Property. So the bank should help the
customers to know about such products which they are less aware. They are satisfied on
the interest of Retail Banking products.
SBI Bank is providing a good service to the customers and it can be termed as
satisfactory from the respondents (Questioner). Executives in SBI Bank are good and co-
operative. To conclude, the overall performance of the SBI Retail Banking products are
good. Though the study was done for a short period it was a very good experience and
learning experience.
Questionnaire
2. Which are the retail banking products you deal with SBI [Mark in front of the option]
a) Savings A/c
b) Fixed Deposit A/c
c) Home Loan
d) Education Loan
e) Debit Card [ATM Card]
f) Credit Card
g) Auto Loan
h) Gold Loan
i) On-line Banking
j) If any, specify
6. How will you get to know about SBI Retail Banking facilities or the offers?
a) News paper b) Website c) TV advertisements d) If any specify___________
Thank you
Bibliography
Websites:
www.sbi.com.
www.investopedia.com.
Reference Books:
Bank manuals.