A

REPORT ON

SUMMER INTERNSHIP/ PROJECT WORK

For

STATE BANK OF INDIA

Submitted to

2
INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I IM)

CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY

(CHARUSAT) CHANGA

Prepared by

SHAIKH TABASSUM

ID No.: 16MBA110

M.B.A. First Year

Under the Guidance of

MR. SNAHAL BHATT

2
INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I IM)
CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY
(CHARUSAT)

1
 DECLARATION

I Shaikh Tabassum student of two-year MBA program at Indukaka Ipcowala Institute

of management (I2Im) hereby declare that the report on summer training and project
work entitled “A Study on Satisfaction towards Various Services Provided by SBI in
the City of Khambhat “is the result of my Own work. I also acknowledge the other
works/publications cited in the report.

Place: Changa Shaikh Tabassum

Date: 1/1/2018

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 ACKNOWLEDGEMENT

I would like to thank my project guide Prof. Snehal Bhatt sir for giving me this and
guiding me throughout my work with patience. He has taken pain to go through my
project and make necessary corrections as and when needed. Without her guidance
and persistent efforts this project would not have been possible.

I extend my gratefulness to my institute’s library and its members for their support
and heartfelt thanks to all the faculty members of the college.

I also cordially thank the bank manager Mr.Prakash Narayan Saini of State Bank
of India, Khambhat for providing time and information needed by me to make this
project a better one.

Thank you very much

Shaikh Tabassum

M.B.A- Changa

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PART 1- ORGANISATIONAL PROFILE

1 INTRODUCTION

2. EVOLUTION & HISTORY

2.1 MISSION

2.2 VISION

 A front runner in India and a producer with International repute.

2.3 LOGO

2.4 GOVERNANCE / MANAGEMENT STRUCTURE:

2.5 PRODUCTS

2.6 GEOGRAPHICAL SPREAD OF FACILITIES:

3. FUNCTIONAL AREAS:

3.1 MARKETS & MARKETING:

3.1.1 Research & Development

3.1.2 Present products of the company

3.1.3 Competitors

3.1.4 Marketing strategies of Meghmani Industries ltd.

3.1.5 Product life cycle

3.2 PRODUCTION / OPERATION

3.3 SUPPLY CHAIN AND LOGISTICS

3.4 HUMAN RESOURCES MANAGEMENT

3.4.1 HR Planning

3.4.2 Recruitment and selection

3.5 FINANCE AND ACCOUNTING

3.5.1 Investment in Various Assets

3.5.2 Working Capital Management

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 3.5.3 Operating cycle

3.5.4 Accounting System

3.5.5 Delegation of Power

3.5.6 Tax Compliance Mechanism

4. DECISION MAKING

4.1 Board meeting

4.2 Audit committee meeting

4.3 Middle management decision

4.4 Decision by operating staff

5. FINANCIAL ANALYSIS

5.1 Profitability of the firm in the last five year

5.2 Assets build up in the last five year

5.3 Key financial ratios and their interpretation

5.4 Financial Health of the organization

6 .Tasks and activities performed in the organization

7. MY LEARNING FROM THE STUDY OF THE ORGANIZATION

7.1 Organizational Learning

PART 2- RESEARCH STUDY

8. TOPIC OF THE STUDY.....................................................................................................37

9. INTRODUCTION............................................................................................................37

9.1 Various Services Provided by SBI .................................................................................37

9.2 Level of Satisfaction with SBI.......................................................................................37

9.3Customer saticfation`.......................................................................................................38

10. LITERATURE REVIEW...................................................................................................40

11. OVERVIEW OF THE STUDY..........................................................................................42

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 11.1 Background of the study..............................................................................................42

12. OBJECTIVES OF THE STUDY.......................................................................................43

13. VARIABLE STRUCTURE................................................................................................43

14. HYPOTHESIS...................................................................................................................43

15. RESEARCH QUESTIONS................................................................................................43

16. RESEARCH METHODOLOGY.......................................................................................44

17. SCOPE OF THE STUDY..................................................................................................44

18. Data Analysis, Finding and Interpretation.........................................................................45

18.1 Analysis........................................................................................................................45

18.2 INTERPRETATION.....................................................................................................45

18.3 Findings........................................................................................................................52

19. CONCLUSION AND LIMITATION.................................................................................55

19.1 Conclusion....................................................................................................................55

19.2 Limitation of the study.................................................................................................55

20. BIBLIOGRAPHY..............................................................................................................55

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PART 1- ORGANISATIONAL PROFILE

1 .INTRODUCTION

State Bank of India (SBI) is an Indian multinational, public sector banking

and financial services company. It is a government-owned corporation with its
headquarters in Mumbai, Maharashtra. On 1st April, 2017, State Bank of India, which
is India's largest Bank merged with five of its Associate Banks (State Bank of Bikaner
& Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and
State Bank of Travancore) and Bharatiya Mahila Bank with itself. This is the first ever
large scale consolidation in the Indian Banking Industry. With the merger, State Bank
of India will enter the league of top 50 global banks with a balance sheet size of ₹33
trillion, 278,000 employees, 420 million customers, and more than 24,000 branches
and 59,000 ATMs. SBI's market share will increase to 22 percent from 17 per cent.
[5]
It has 198 offices in 37 countries; 301 correspondents in 72 countries.[6] The
company is ranked 232nd on the Fortune Global 500list of the world's biggest
corporations as of 2016.

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2. EVOLUTION & HISTORY

The roots of the State Bank of India lie in the first decade of the 19th century, when
the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June
1806. The Bank of Bengal was one of three Presidency banks, the other two being
the Bank of Bombay (incorporated on 15 April 1840) and the Bank of
Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated
as joint stock companies and were the result of royal charters. These three banks
received the exclusive right to issue paper currency till 1861 when, with the Paper
Currency Act, the right was taken over by the Government of India. The Presidency
banks amalgamated on 27 January 1921, and the re-organised banking entity took as
its name Imperial Bank of India. The Imperial Bank of India remained a joint stock
company but without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of
India, which is India's central bank, acquired a controlling interest in the Imperial
Bank of India. On 1 July 1955, the imperial Bank of India became the State Bank of
India. In 2008, the Government of India acquired the Reserve Bank of India's stake in
SBI so as to remove any conflict of interest because the RBI is the country's banking
regulatory authority.

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 2.1 MISSION

 We will speak the language of young India.

 We will create products and services that help our customers achieve their
goals.

 We will go beyond the call of duty to make our customers feel valued.

 We will be of service even in the remotest part of our country.

 We will offer excellence in services to those abroad as much as we do to those

in India.

 We will imbibe state of the art technology to drive excellence.

 We will be prompt, polite and proactive with our customers.

2.2 VISION

 My Customer first.

 My SBI.

 SBI: First in customer satisfaction

2.3 LOGO

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10
2.4 GOVERNANCE / MANAGEMENT STRUCTURE

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 2.5 PRODUCTS

 Working Capital Finance

 Project Finance

 Deferred Payment Gaurantees

 Corporate Term Loans

 Structured Finance

 Dealer Financing

 Channel Financing

 Equipment Leasing

 Loan Syndication

 Financing Indian Firms Overseas Subsidiaries or JVs

 Construction Equipment Loan

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 FUNCTIONAL AREAS:

3.1 MARKETS & MARKETING:

3 . 1 . 1 R e s e a r c h & D e v e l o p m

 Promoting Panchayati Raj as an instrument of rural development;

 Making financial inclusion in the rural areas more effective through banking
channels;
 Strengthening of credit usage for the economic upliftment of the rural
households; and
 Entrepreneurial skill development in the rural areas.

 Comparison of 4p’s of Marketing for SBI With Competitors:-

State Bank of India is a public corporation owned by the government of India. This
multinational company deals exclusively in the financial and banking sector. SBI was
founded in the year 1806 and at present, its headquarters is in the city of Mumbai. In
terms of assets, it is the largest and in terms of ancestry the oldest banking empire in
India. In the Indian subcontinent, State Bank of India is spread over 17,000 branches
and 190 offices in foreign. Arundhati Bhattacharya is the present Chairman of State
Bank of India.

Some of the competitor banks of SBI are as follows –

 Punjab National Bank

 HDFC Bank

 ICICI Bank

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  Axis Bank

 Central Bank of India

 Product in the Marketing mix of State bank of India

 Mortgage loans

 Wealth management

 Asset management

 Private equity

 Savings security

 Finance and insurance

 Corporate banking

 Place in the Marketing mix of State bank of India

The place is the most important factor for SBI because many of the top government
organizations deal with SBI as their bank. This creates large number of transactions
touching all parts of India. In India, State Bank of India provides its customers

14
services through a set-up of various branches. It has 14 regional hubs and 57 offices in
zones that are located throughout India at all the important cities. 66% of its branches
are located in rural areas whereas the rest 34% are located in urban areas.

These distribution channels are equipped with latest infrastructure, technology and
modern facilities. ATM and the branches are installed at places that are convenient to
both the banker and the customer. The concept of internet banking through their
residence and offices is also encouraged to save time.

 Price in the Marketing mix of State bank of India

State Bank of India offers a variety of financial services to its honored customers. It
has a very clear-cut pricing policy. It works in a competitive marketplace and so it has
a policy that includes creativeness at each level. Hence it can be said that State bank
uses competitive pricing. Also remember that the pricing of SBI is determined by
many of government policies.

The pricing policies and decisions are based on the rate of interest that is regulated by
the Reserve bank of India. The risk on loan has to be kept in mind also. Liability and
Assets make a huge impact on the pricing factors.

 Promotions in the Marketing mix of State bank of India

In order to promote its services and banking facilities proper strategies are
implemented. Promotions through the Visual and print media through hoardings,
radio, theatres, movies, TV advertisements and newspapers have become very
necessary so that an awareness can be created. The various advertisements
emphasizes on the modernization of the banks, its branches and its various facilities.
Special mention is given in the ads to the impeccable services provided by the bank.

The advantage of each product is emphasized so that the clients become impressed
and they are forced to grasp the services of this bank. Under the promotional strategy,

15
ads have been created with famous personalities depicting trust as trust and State
Bank of India go hand in hand.

Competitors

1. ICICI Bank

2. Andhra Bank

3. Allahabad bank

4. HDFC

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5. Axis Bank

6. Bank of Baroda

Marketing strategies of State bank of India

1) Porter generic

2) Innovation

3) Growth

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Product life cycle

1) Introduction Stages

In this stage, a new product is introduced on a large scale for the first time. Market
reacts slowly to the introduction. In other words, consumers take time to accept the
new product. Initially, the company may suffer losses, sales

Imp gradually. Most of the products fail in this stage itself.

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2) Growth Stage

1. Consumers & traders accept the product

2. Sales & profit increase
3. More competitions enter the market
4. Distribution network increase
5. The price will be reduced marginally.

3) Maturity Stage

This stage indicates the capacity to face the competition, sales increases at a
decreasing rate. Competition becomes severe. It is reflected in various ways such as
offering discounts, modifying products etc.

4) Saturation Stage –

This is the stage when the sales reach the peak point. Competition intensifies further
& profit begins to decline. Small competitors may withdraw from the market because
of their incapability to face the competition.

5) Decline Stage –

For all products, sales invariably declines as new products enter the market. In this
stage, there is a sharp decline in the profits, cost increases & market share comes
down. Most of the manufactures withdraw from the market. Some may reduce
production & concentrate only on a limited market

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3.2 PRODUCTION / OPERATION

Product Engines are the combination of back office services and systems that carry
out the day to day activities associated with a product such as a current account or a
home loan. One of the key aims for banks is to achieve economies of scale in back
office processing. In order to achieve this banks areincreasingly using a single product
engine to serve many market

However, banks are aware that customer service needs to be clearly aligned to the
brand promise; hence one back office product processing engine may have to deal
with a number of different customer service approaches. This is an important reason
why many banks now see the value of separating customer service from back office
processing

E- commerce services

 Internet Banking

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  Mobile Banking

 ATM Service

 Cash Deposit Machine

INTERNET BANKING

 Funds transfer between own accounts.

 Third party transfers to accounts maintained at any branch of SBI

 Group Transfers to accounts in State Bank Group

 Inter Bank Transfers to accounts with other Banks

 Online standing instructions for periodical transfer for the above

 Credit PPF accounts across branches

Mobile Banking

Away from home, balance enquiries can be made and/or money sent to the loved ones
or bills can be paid anytime 24x7!!! That is what State Bank Freedom offers
-convenient, simple, secure, anytime and anywhere banking.

ATM Service

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State Bank offers you the convenience of over 43,000+ ATMs in India, the largest
network in the country and continuing to expand fast! This means that you can
transact free of cost at the ATMs of State Bank Group (This includes the ATMs of
State Bank of India as well as the Associate Banks - namely, State Bank of Bikaner &
Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and
State Bank of Travancore) and wholly owned subsidiary viz. SBI Commercial and
International Bank Ltd., using the State Bank ATM-cum-Debit (Cash Plus) card.

SUPPLY CHAIN AND LOGISTICS

Electronic Vendor Financing Scheme (e-VFS ) and Electronic Dealer Financing

Scheme (e-DFS)
State Bank of India introduces Supply Chain Finance by leveraging its state of the art
technology for the convenience of the customers. SCF will strengthen the relationship
of SBI with the Corporate World by financing their supply chain partners.

Under Supply Chain Finance Unit we have established an online platform for
financing the Supply Chain partners of various reputed Corporate.

A Web based platform which:

 Provides convenient paperless banking.

 Ensures Real time online transfer of funds and MIS.

 Is fully customizable as per your business requirement.

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  Is capable of being fully integrated with Corporate Enterprise Resource
Planning Software (ERP)/SAP.

HUMAN RESOURCES MANAGEMENT

State Bank of India is the nation's largest and oldest bank. Tracing its roots back some
200 years to the British East India Company (and initially established as the Bank of
Calcutta in 1806), the bank operates more than 15,000 branches withinIndia, where it
also owns majority stakes in six associate banks. State Bank of India (SBI) has more
than 80 offices in nearly 35 other countries, includingmultiple locations in the US,
Canada, and Nigeria. The bank has other unitsdevoted to capital markets, fund
management.

HRDD Vision

The Vision of the Human Resources Development Department (HRDD) is essentially

to facilitate the Bank to carry out central banking activities, i.e.(i) To create an
enabling environment to enhance the efficiency of the organization(ii) To draw out
from our staff the very best by a system of proper placements, incentives, &(iii) To
create an atmosphere of trust, a certain security of expectations and feeling that the
organization cares about the well being and personal aspirations of the staff.

FINANCE AND ACCOUNTING

3.5.1 Investment in Various Assets

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Long term & short term financial managemen

Short Term Financing

1. Overdraft Agreement:

2. Accounts Receivable Financing:

3. Customer Advances:

4. Selling Goods on Instalment:

Long-Term Financing

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1. Long-Term Loan from a Bank:

2. Retain Profits:

3. Issue Equities and Debentures:

3.5.2 Working Capital Management

Guided by the above criteria, management will use a combination of policies and
techniques for the management of working capital. The policies aim at managing
the current assets (generally cash and cash equivalents, inventories and debtors) and
the short-term financing, such that cash flows and returns are acceptable.

 Cash management. Identify the cash balance which allows for the business to
meet day to day expenses, but reduces cash holding costs.

 Inventory management. Identify the level of inventory which allows for

uninterrupted production but reduces the investment in raw materials—and
minimizes reordering costs—and hence increases cash flow. Besides this, the lead
times in production should be lowered to reduce Work in Process (WIP) and
similarly, the Finished Goods should be kept on as low level as possible to avoid
over production—see Supply chain management; Just In Time (JIT); Economic
order quantity (EOQ); Economic quantity

 Debtor’s management. Identify the appropriate credit policy, i.e. credit terms
which will attract customers, such that any impact on cash flows and the cash
conversion cycle will be offset by increased revenue and hence Return on Capital
(or vice versa); see Discounts and allowances.

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 Short-term financing. Identify the appropriate source of financing, given the
cash conversion cycle: the inventory is ideally financed by credit granted by the
supplier; however, it may be necessary to utilize a bank loan (or overdraft), or to
"convert debtors to cash" through "factoring".

 Short Term Sources of Working Capital Finance

Short term sources can be further divided into internal and external sources of
working capital finance. The short-term internal sources include tax provisions,
dividend provisions etc. Short-term external sources include short-term working
capital financing from banks such as bank overdrafts, cash credits, trade deposits, bills
discounting, short-term loans, inter-corporate loans, commercial paper, etc.

Tax and dividend provisions are current liabilities and cannot be delayed. The fund
that would have been used in paying these provisions act as working capital till the
point these are not paid.

 Long Term Sources of Working Capital Financing

Long term sources can also be divided into internal and external sources. Long term
internal sources of finance are retained profits and provision for depreciation whereas
external sources are Share Capital, long-term loan, and debentures.

Retained profits and accumulated depreciation are as good as funds available to the
business without any explicit cost. These are the funds completely earned and owned
by the business itself. They are utilized for expansion as well as working capital
finance. Long-term external sources of finance like share capital is a cheaper source
of finance but are not commonly used for working capital finance

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3.5.3 Operating cycle

As a step to curb building up risks from short-term credit, Reserve Bank of India on
Thursday asked banks to link trade loans for imports to the operating cycle
Bankers said the directive from RBI was step to rationalise credit usage pattern. With
cheap rates for trade credit, there was tendency to borrow for period more than
what operating cycle of a unit required. For example, if the operating cycle of units
(importing goods and materials) was three months, it sought trade credit for six
months to enjoy use of cheap funds in foreign currency. If the position was un-hedged
it would expose units to currency risks

1. Conversion of cash into raw material

2. Conversion of raw material into work-in-progress

3. Conversion of work-in-progress into finished goods.

4. Conversion of finished goods into accounts receivables, and

5. Conversion of accounts receivables into cash

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4. DECISION MAKING

Analytical Decision Making is based on a set of relationships laid out, generally

arbitrarily, from which new information can be deduced. This involves two steps-
first of analysis and second of reasoning. Analytical decision making deals with
questions in which you have to decide upon the course of action taken upon a
candidate who hasapplied for a post or membership to an institution keeping in mind
the essential requisites and the data given for the candidate. We can classify such
questions into a few major categories.

Category I

In this type a vacancy is being declared. The necessary qualifications required by

therecruiting agencies are given with certain exceptions. The qualifications and the
merits ofthe candidates are mentioned. The decision about each candidate has to be
made from amongst the five choices given, which state the courses of action to be
taken as per the candidate’s potential.

Category II

Here the eligibility conditions for joining a course or availing certain benefits etc are
given as against the vacancies mentioned in the former category. The qualifications of
the candidates are also mentioned. The decision about each candidate is to be made
from amongst the five answer choices given.

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 6. FINANCIAL ANALYSIS

6.1 Profitability of the firm in the last five year

Y E A R P R O F I T ( i n R s )
2 0 1 3 - 2 0 1 4 1 2 7 9 9 7 . 6 2
2 0 1 4 - 2 0 1 5 1 2 9 6 2 9 . 3 3
2 0 1 5 - 2 0 1 6 1 1 5 8 8 3 . 8 4
2 0 1 6 - 2 0 1 7 8 4 9 5 5 . 6 6

6.2 Assets build up in the last five year

State Bank of India Services

State Bank of India Services are most varied and innovative amongst all its
contemporaries. State Bank of India Services includes a host of products and services
to suit all types of consumers.

 Banking Subsidiaries- State Bank of Bikaner and Jaipur (SBBJ), State Bank
of Hyderabad (SBH), State Bank of Indore (SBIr), State Bank of Mysore (SBM),
State Bank of Patiala (SBP), State Bank of Saurashtra (SBS) and State Bank of
Travancore (SBT).
 Foreign Subsidiaries - State bank of India International (Mauritius) Ltd.,
State Bank of India (California), State Bank of India (Canada) and INMB Bank Ltd,
Lagos.
 Non- banking Subsidiaries - SBI Capital Markets Ltd (SBICAP), SBI Funds
Management Pvt Ltd (SBI FUNDS), SBI DFHI Ltd (SBI DFHI), SBI Factors and
Commercial Services Pvt Ltd (SBI FACTORS) and SBI Cards & Payments Services
Pvt. Ltd. (SBICPSL)

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30
5.3 Key financial ratios and their interpretation

P A R T I C U L A R S Y E A R
2013-2014

C u r r e n t r a t i o 1 . 7 9 . 1
( current assets / current liabilities )
Q u i c k r a t i o 0 . 9 1 . 1
( quick assets / current liabilities )
Return on shareholder fund 8 . 0 5 %
( EAT/ shareholder’s fund )* 100
D e b t e q u i t y r a t i o 0 . 0 1 3
( long term debts / shareholder’s fund )
P r o p r i e t a r y r a t i o 7 1 . 5 0 %
( shareholder’s fund / capital employed )* 100
N e t p r o f i t r a t i o 2 . 8 5 %
( net profit / net sales )
I n t e r e s t c o v e r a g e r a t i o 1 . 4 5
( EBIT / interest )
R e t u r n o n a s s e t s 0 . 0 3 0 %
( net profit / total assets )
Inventory turnover rati o 2 . 8 0
( total sales / inventory )
Return on capital employee 0 . 0 5
(net profit / capital employed )
E a r n i n g s p e r s h a r e 3 0 . 0 1
( net profit / no. of equity shares )
A s s e t s t u r n o v e r r a t i o 1 . 0 2
( net sales / average total assets )

P A R T I C U L A R S Y E A R
2014-2015

C u r r e n t r a t i o 2 . 1 9 . 1
( current assets / current liabilities )

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Q u i c k r a t i o 1 . 5 0 . 1
( quick assets / current liabilities )
Return on shareholder fund 2 2 . 2 3 %
( EAT/ shareholder’s fund )* 100
D e b t e q u i t y r a t i o 0 . 4 5
( long term debts / shareholder’s fund )
P r o p r i e t a r y r a t i o 6 9 . 7 3 %
( shareholder’s fund / capital employed )* 100
N e t p r o f i t r a t i o 7 . 6 0 %
( net profit / net sales )
I n t e r e s t c o v e r a g e r a t i o 3 . 5 0
( EBIT / interest )
R e t u r n o n a s s e t s 0 . 0 9 1 %
( net profit / total assets )
Inventory turnover rati o 2 . 0 6
( total sales / inventory )

sReturn on capital employee 0 . 1 3

( net profit / capital employed )
E a r n i n g s p e r s h a r e 8 8 . 8 6
( net profit / no. of equity shares )
A s s e t s t u r n o v e r r a t i o 1 . 1 3
( net sales / average total assets )

P A R T I C U L A R S Y E A R
2015-2016

C u r r e n t r a t i o 2 . 3 0 . 1
( current assets / current liabilities )
Q u i c k r a t i o 1 . 8 5 . 1
( quick assets / current liabilities )
Return on shareholder fund 1 9 . 2 3 %
( EAT/ shareholder’s fund )* 100
D e b t e q u i t y r a t i o 0 . 3 3
( long term debts / shareholder’s fund )

32
P r o p r i e t a r y r a t i o 7 5 . 2 0 %
( shareholder’s fund / capital employed )* 100
N e t p r o f i t r a t i o 1 0 . 2 5 %
( net profit / net sales )
I n t e r e s t c o v e r a g e r a t i o 3 . 2 0
( EBIT / interest )
R e t u r n o n a s s e t s 0 . 0 8 9 %
( net profit / total assets )
Inventory turnover rati o 2 . 3 0
( total sales / inventory )
Return on capital employee 0 . 1 2
(net profit / capital employed )
E a r n i n g s p e r s h a r e 9 5 . 1 2
( net profit / no. of equity shares )
A s s e t s t u r n o v e r r a t i o 0 . 8 8
( net sales / average total assets )

P A R T I C U L A R S Y E A R
2016-2017

C u r r e n t r a t i o 1 . 7 7 . 1
( current assets / current liabilities )
Q u i c k r a t i o 1 . 1 0 . 1
( quick assets / current liabilities )
Return on shareholder fund 3 0 %
( EAT/ shareholder’s fund )* 100
D e b t e q u i t y r a t i o 0 . 0 1 4
( long term debts / shareholder’s fund )
P r o p r i e t a r y r a t i o 6 5 %
( shareholder’s fund / capital employed )* 100
N e t p r o f i t r a t i o 2 . 1 8 %
( net profit / net sales )
I n t e r e s t c o v e r a g e r a t i o 0 . 1 3
( EBIT / interest )
R e t u r n o n a s s e t s 0 . 1 5
( net profit / total assets )

33
 Inventory turnover rati o 3 . 0 6
( total sales / inventory )
Return on capital employee 0 . 0 3
( net profit / capital employed )
E a r n i n g s p e r s h a r e 1 0 . 7 0
( net profit / no. of equity shares )
A s s e t s t u r n o v e r r a t i o 2 . 2 5
( net sales / average total assets )

Interpretation of Ratios

 Current ratio: - Current ratio expresses the extent to which the current liabilities of a
business are covered by its current assets. A current ratio of 2 would mean that current
assets are sufficient to cover for twice the amount of a company's short term
liabilities. Here the current ratio which decreases in year 2013-14 and comes to 1.79
but the company soon recovered and improves the ratio in year2014-15 and in year
2015-16 is 2.31 and 2.30 respectively.20171.77.

 Quick ratio: - Quick ratio shows the extent of cash and other current assets that are
readily convertible into cash in comparison to the short term obligations of an
organization. A quick ratio of 0.5 would suggest that a company is able to settle half
of its current liabilities instantaneously. For MIL the ratio , in year 2013-14 it slightly
decreases to 0.91 but next two years it recover and reaches to 1.50 and 1.85 in year
2014-15 and 2015-16 and 2016-2017 1.10 respectively.

 Return on shareholder’s fund: - it is used to measure the overall profitability of the

company from preference and common stockholders’ point of view. The ratio also
indicates the efficiency of the management in using the resources of the business.
Higher ratio means higher return on shareholders’ investment and a lower ratio
indicates otherwise. Investors always search for the highest return on their investment.
The ratio is , 8.05%, 22.23% and 19.23% and30% for last five years.

 Debt-to-equity ratio:-Debt-to-equity ratio quantifies the proportion of finance

attributes to debt and equity. Debt-to-equity ratio which is low, say 0.1, would suggest

34
 that the company is not fully utilizing the cheaper source of finance (i.e. debt)
whereas a debt-to-equity ratio that is high, say 0.8, would indicate that the company is
facing a very high financial risk. For year the ratio of MIL is and for 2013-14 is
0.013. it is increased in last two years which is 0.45 and 0.33for year 2014-15 and
2015-16 and 2016-2017 0.014 respectively.

 Proprietary ratio: - proprietary ratio shows the contribution of stockholders’ in total

capital of the company. A high proprietary ratio, therefore, indicates a strong financial
position of the company and greater security for creditors. A low ratio indicates that
the company is already heavily depending on debts for its operations. For MIL the
ratio in the year next year it rise to 71.50% and in the year 2014-15 it is 69.73% which
further increase in year 2015-16 to 75.20%.and2016-2017 65%.

 Net Profit Ratio: -Net Profit Ratio is the percentage of net profit relative to the
revenue earned during a period. In MIL net profit ratio is increasing over the years. It
is 2.85%, 7.60% and 10.25% ,2.18% for last four years.

 Interest Coverage Ratio: - Interest Coverage Ratio indicates the capacity of an

organization to pay its interest obligations. An interest cover of 2 implies that the
entity has sufficient profitability to bear twice the amount of its current finance cost.
This ratio is, 1.45 in year 2013-14, 3.50 in year 2014-15 and 3.20in year 2015-16.and
2016-2017 0.13.

 The Return on Assets (ROA):- this ratio shows the relationship between earnings
and asset base of the company. The higher the ratio, the better it is. This is because a
higher ratio would indicate that the company can produce relatively higher earnings in
comparison to its asset base i.e. more capital efficiency. The ratio is in next year it
increases to 0.30%. In year 2014-15 the ratio is 0.091% and 0.089% in 2015-16.
And2016-2017 0.15

 Inventory turnover ratio: - it is a ratio showing how many times a company's

inventory is sold and replaced over a period of time. Inventory turnover is a measure
of how efficiently a company can control its merchandise, so it is important to have a
high turn. This shows the company does not overspend by buying too much inventory
and wastes resources by storing non-saleable inventory. The ratio in is and decrease in
next year to 2.80. in year 2014-15 the ratio is again 2.06 and again decrease in 2015-

35
 16 to 3.20to2016-20173.06.

 Return on capital employed ratio: - it measures the efficiency with which the
investment made by shareholders and creditors is used in the business. Managers use
this ratio for various financial decisions. It is a ratio of overall profitability and a
higher ratio is, therefore, better. for last four years the ratio is 0.05, 0.13 and 0.13 and
0.03.

 Earnings per share (EPS) ratio: - it measures how many dollars of net income have
been earned by each share of common stock. Earnings per share (EPS) are the portion
of a company's profit allocated to each outstanding share of common
stock. Earnings per share serves as an indicator of a company's profitability. The EPS
ratio of company is, 30.01 in 2013-14, 88.86in 2014-15, in95.12

 Asset turnover ratio: - it is the ratio of a company's sales to its assets. It is an

efficiency ratio which tells how successfully the company is using its assets to
generate revenue.
If a company can generate more sales with fewer assets it has a higher turnover ratio
which tells it is a good company because it is using its assets efficiently. A lower
turnover ratio tells that the company is not using its assets optimally. Total asset
turnover ratio is a key driver of return on equity. MIL has the ratio in which increases
in next year to 1.02 and in year 2014-15 it is 1.13and 2016-2017 2.25

5.4 Financial Health of the organization

From the view of balance sheet and profit and loss account, we can clearly see that
company has good financial position. From the year 2013-14 financial position of the
company is growing up & companies graph is continuously increasing. The last year’s
financial data shows healthy position of the company.

36
6 .Tasks and activities performed in the organization

● Apply online application

● Online registration form

● Apply form

● Internet banking activation procedure for the account holders of the state bank of
india

● Download application form

● Fill the form

37
● Adharcard link

7. MY LEARNING FROM THE STUDY OF THE ORGANIZATION

7.1 Organizational Learning

● Providing Educated Indian Youth with an opportunity to touch lives and create
positive change at the grass root level in rural India

● Providing NGOs Working on Development Projects in Rural India with Educated

Man power Whose Skill Sets Can be used to Catalyze Rural Development

38
● Promoting a Forum for the Programme Alumni to Share Ideas and Contribute to
Rural Development Throughout Their Professional life's.

Part 2
39
 Project
Study

8. TOPIC OF THE STUDY

A Study on awareness and Perceptions towards different governmental schemes

available at SBI in the City of Khambhat

40
9. INTRODUCTION

Banking Awareness for IBPS, RBI, SBI PO, Clerk Exams 2017 – Mission SBI
PO 2017 is in the air! Students are busy preparing for the exam and are filled with
enthusiasm to clear the exam. For an effective IBPS, RBI, SBI PO, Clerk preparation,
students need to make a study plan as per the IBPS, RBI, SBI PO, Clerk exam pattern
and syllabus. But, students need to make sure that they give genuine attention to all
subjects. Banking Awareness for IBPS, RBI, SBI PO, Clerk is one of the vital
sections asked in bank PO exams. So, in this article, we will provided.

9.1 What IS Governmental Schemes?

In general awareness section of IBPS and many other government job exams
questions are asked from government schemes. So I made a list of all government
schemes with their objectives and working. In in IBPS 2012, SBI 2013, NICL
2013 and SEBI grade A 2013 questions were asked from this topic. So if you are
preparing for IBPS PO 2013 then go through all these schemes.

9.2Available Schemes in SBI:-

The study has been conducted at SBI Bhiwani. The main focus of the study is to know
about customer’s perceptions about various credit schemes. As SBI card is an integral
part of SBF (small business financing). So the due weightage is given to SBI card. This
study has been conducted by classifying customers into two categories.

 SBI Card holders

 Non SBI Card holders

 9.3 Awareness and Perception of sbi bank:-

 Important topics for banking awareness for SBI:-

To prepare for Banking Awareness for IBPS, RBI, SBI PO, Clerk 2017, students need to
prepare all the important topics banking awareness for IBPS, RBI, SBI PO, and Clerk. Let
us take a look at few of the important topics asked in Banking Awareness:

41
  Facts about GST:-
GST or Goods and Services Tax refer to a value added tax which will act as a
replacement for the indirect taxes imposed by the Govt. (both central and state) on goods
and services. The GST bill is otherwise known as ‘The Constitution Bill
(122ndAmendment)’.

 RBI- The Banker’s Bank:-

Reserve Bank of India (RBI) is popular as the Banker’s Bank. Like every other
organization, banks also require their own mechanism to take care of transactions,
transfer of funds and settle. This role is played by RBI.

 Internet Banking- Banking is a click away:-

Internet has made things much easier for banks now. Internet Banking is the latest trend
these and people mostly use internet for all types of banking services. As far as the
convenience factor is considered, internet banking is a blessing.

10. LITERATURE REVIEW

Huang, Haibo (2005) reveals that the successful introduction electronic money and e-
banking services depends mainly on people acceptance. The major finding is that
although e- banking customers more or less have some common characteristics, they
differ across different types of e-banking services.

Taft, Jeanette (2007) pointed out that Technology Acceptance Model (TAM) as
applied to a specific type of technology: e-banking. They suggested that e-banking –
prior training, perceived ease of use of e-banking technology.

Siregar, DonaD (2004) investigate that the relative importance of different factors
influence bank decision on going public over consolidating with other banking
organisations. Many banks experienced consolidation through merger acquisitions
(M&A).

42
Reynolds, John (2007) said that 2006 e-banking technology services industry
customer loyalty survey data results in order to improve marketing resource allocation
for corporate e- banking products and services.

Jeon, Kiyong (2014) have said that consumer prefer larger banks in U.S.Because they
has to reduce their transportation cost by way of larger banks have multiple ATM
centre’s across the country.

11. OVERVIEW OF THE STUDY

11.1 Background of the study

 Small Business plays a vital role in the economic well being of the U.S. To
assist small business owners/ operators, federal government passed the Small
Business Act in 1953.

 Passage of this act was responsible for the creation of the U.S. Small
Business Administration (SBA). One of the major areas of assistance to the
small business owners/operators provided by the SBA is management and
technical assistance. Under this program, the SBA provides both in-house
and outside counseling.

 The in-house counseling to small business owners/operators is provided by

the management assistance staff (MAS), and the outside counseling by the
SCORE/ACE counsellors and the Small Business Institute (SBI).

 Awareness plays an extremely important role in the usage of the counseling

services provided by the SBA. This study was, therefore, designed to
determine primarily the awareness, usage, and perception of the counseling
programs and the areas in which they were used.

 Analysis of the data provided by 86 small businesses located in Michigan

ssrevealed that the awareness was "poor."

43
  Perception of the counseling programs was rated as "about average", and
most had "never used" the available services. Counseling was mostly
received in the areas of accounting, finance, marketing, and marketing
research.

 Any attempt by the SBA to reorganize the counseling programs must

investigate the reasons for not using the programs. Based on the results of
such an investigation, corrective steps must be taken to design and deliver
effective counseling.

 OBJECTIVE OF STUDY:-

 To find out level of customer awareness about the governmental schemes

available at SBI at Khambhat.
 To find out the factors affecting perception of customers towards
governmental schemes available at SBI at Khambhat

 Scope of the study:-

 This research focuses the level of customer satisfaction derived from banking
services of SBI in Khambhat

 The study also involves in identifying and analyzing the customer satisfaction
towards selection of a bank.

 Problem Statement:-

In the current competitive world banks have to struggle their might to offer the best of
the customer satisfaction through various innovative strategies in order to survive in
industry. This study would stand as a sincere attempt to evaluate customer satisfaction
of SBI in Khambhat District.

 Significance of the Study:-

44
  The profile of the respondents of SBI customers, Account wise, Gender, age,
Qualification, Employment, Income and Area wise is furnished.
.

12. VARIABLE STRUCTURE

Sources of
Customers awareness towards
information,Advertisement
government schemes

Return,Safety,Liquidity,Return
earned,Tax saving,
Customers perception towards
Performance of past schemes government schemes

 RESEARCH METHODOLOGY
T y p e o f D e s c r i p t i
r e s e a r c h v e
R e s e a r c h Descriptive Research
d e s i g n design
T y p e o f C o n v e n i e n c e
s a m p l i n g S a m p l i n g
S a m p l e 5
s i z e 0
S a m p l e S B I b a n k
u n i t c u s t o m e r s
T y p e o f P r i m a r
d a t a y
D a t a C o l l e c t i o n Q u e s t i o n n a i
T o o l r e
D a t a C o l l e c t i o n S u r v e
M e t h o d y
A r e a o f K h a m b h a
R e s e a r c h t

45
13. HYPOTHESIS:-

Ho= There is no association between level of customer awareness about the

governmental schemes available at SBI at Khambhat.

H1=There is association between level of customer awareness about the governmental

schemes available at SBI at Khambhat.

14. DATA ANALYSIS, FINDING AND INTERPRETATION

14.1 Analysis

Reliability test:

Case Processing Su mmar y

N %

Cases V a l i d 4 1 7 0 . 7

Excludeda 1 7 2 9 . 3

T o t a l 5 8 1 0 0 . 0

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's Alpha N of Items

. 6 9 5 1 4

Interpretation:
Above table shows the value of Cronbach's alpha is .695 so the reliability of data is
69.5%.

Chi-square test:

Hypothesis:
Ho= There is no association between level of customer awareness about the
governmental schemes available at SBI at Khambhat.

46
H1= There is association between level of customer awareness about the
governmental schemes available at SBI at Khambhat.

C h i - S q u a r e T e s t s

Monte Carlo Sig. (2-sided) Monte Carlo Sig. (1-sided)

95% Confidence Interval 95% Confidence Interval

Value d f Asymptotic Significance (2-sided) Significance Lower Bound Upper Bound Significance Lower Bound Upper Bound

Pearson Chi-Square 6.791a 6 . 3 4 1 . 3 0 0 b

.173 .427
b
Likelihood Ratio 7.161 6 . 3 0 6 . 3 0 0 .173 .427
b
Fisher's Exact Test 6.595 . 3 0 0 .173 .427
c b b
Linear-by-Linear Association .005 1 . 9 4 3 1 . 0 0 0 . 9 4 2 1.000 . 4 4 0 .302 .578
N of Valid Cases 5 0

a. 12 cells (85.7%) have expected count less than 5. The minimum expected count is 2.50 .
b. Based on 50 sampled tables with starting seed 2000000.
c . T h e s t a n d a r d i z e d s t a t i s t i c i s . 0 7 2 .

Interpretation

Here null hypothesis is accepted (Ho) means there is There is no

association between level of customer awareness about the governmental
schemes available at SBI at Khambhat.

Factor analysis

T o t a l V a r i a n c e E x p l a i n e d

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

C o m p o n e n t Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %

47
1

C o m p o n e n t M a t r i x

C o m p o n e n

S A F E T Y
L I Q U I D I T Y . 9 2 5
RETURN EARNED
T A X S A V I N G
3.091 38.633 38.633 3.091 38.633 38.633 2.936 36.697 36.697
PERFORMANCE OF PAST SCHEME . 9 2 5
RATING OF MUTUAL FUND BY ANGNCY
A D V E R T I S M E N T
RECOMNDATION OF FRIENDS . 8 7 9

Extraction Method: Principal Component Analysis.

a . 3 c o m p o n e n t s e x t r a c t e d

2 2.328 29.106 67.739 2.328 29.106 67.739 2.470 30.876 67.574

3 1.213 15.163 82.902 1.213 15.163 82.902 1.226 15.329 82.902
4 .836 10.451 93.353
5 .455 5.691 99.045
6 .076 .955 100.000
7 -1.771E-16 -2.214E-15 100.000
8 -2.392E-16 -2.990E-15 100.000

E x t r a c t i o n M e t h o d : P r i n c i p a l C o m p o n e n t A n a l y s i s .

a
C o m p o n e n t M a t r i x

C o m p o n e n t

1 2 3

S A F E T Y - . 7 4 0
L I Q U I D I T Y . 9 2 5
RETURN EARNED . 8 7 5
T A X S A V I N G . 5 8 4
PERFORMANCE OF PAST SCHEME . 9 2 5
RATING OF MUTUAL FUND BY ANGNCY . 8 7 5
A D V E R T I S M E N T . 7 4 3
RECOMNDATION OF FRIENDS . 8 7 9

Extraction Method: Principal Component Analysis.

a . 3 c o m p o n e n t s e x t r a c t e d .

48
 a
R o t a t e d C o m p o n e n t M a t r i x

C o m p o n e n t

1 2 3

S A F E T Y . 7 5 5
L I Q U I D I T Y . 9 8 9
RETURN EARNED . 9 6 6
T A X S A V I N G . 7 5 9
PERFORMANCE OF PAST SCHEME . 9 8 9
RATING OF MUTUAL FUND BY AGENCY . 9 6 6
A D V E R T I S M E N T - . 7 3 9
RECOMNDATION OF FRIENDS . 9 7 3

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.a
a. Rotation converged in 4 iterations .

Interpretation:

No of factors Va r i a b l e s V a l u e s Factor name

F a c t o r 1 L i q u i d i t y . 9 8 9 R e l i a b l e
Performance of past
scheme . 9 8 9
S a f e t y
. 7 5 5
Return .
F a c t o r 2 earned 9 6 6 Profitability
Tax .
saving 7 5 9

Fund by agency . 9 6 6

F a c t o r 3 Recommendation of friends . 9 7 3 Aw a r e n e s s

Advertisement . 7 3 9
49
18.3 Findings

Various Services Provided by SBI

State Bank of India (SBI) is the largest public sector bank in India. Launched in
the first decade of the nineteenth century the bank has played a pivotal role in
establishing the organized banking services sector across India by way being
repositories to savings and lenders to leading businesses across India. State Bank
of India has thus played a key role in the economic development of India.

50
Three Strategic Business Units (SBUs) under the Corporate Banking Group have been
set up by SBI to pay attention to big corporate customers. Distinguishing features of
the SBUs are assimilation of operational planning with operations within each SBU,
an alert delivery system with suitable specialist inputs and focused attention on
profitability

 Enquiry services (Balance enquiry/ Mini statement)

 cheque book request

 Demit Enquiry Service ( (Portfolio value, Request for DIS booklet, Value of
holdings, statement of charges, Transaction status etc.)

 Bill Payment (Utility bills, credit cards, Insurance premium payments)

Donations, Subscriptions

 M Commerce (Mobile Top Up, Top up of Tata sky, Big TV, Sun Direct, Dish
TV connections and receive recharge pins for Digital TV/Videocon d2h,
Merchant payment, SBI life insurance premium)

 Business Rules governing Mobile Banking Service over Application / WAP.

 The Mobile Banking Service will be available to all the customers having
Current/ Savings Bank Account(Personal segment). The customers will have
to register for the services.

 Daily transaction limits for fund transfer/ bill/ merchant payment is

Rs.50,000/- per customer with an overall calendar month limit of
sRs.2,50,000.00
 The service will be carrier-agnostic i.e. all customers can avail the mobile
banking service with the Bank irrespective of the service provider for their
mobiles.

51
19. CONCLUSION AND LIMITATION

19.1 Conclusion

This research articles highlights the satisfaction level of customers towards the
banking services of the SBI in Khambhat. Having considered the demographic factors
of age, sex, marital status, educational qualifications and monthly income of 150
respondents, a final data has been arrived and it point out that there is a medium level
of satisfaction on the customers’ side.

With factors like employee behavior, banking services and banking performance
affecting the level of customer satisfaction, the SBI has to implement prompt
customer friendly schemes / portfolios as an initiative go. These would thereby go a
long way to enhance the level of customers’ satisfaction thereby rectifying customer
worries and alleviate the Number of customers as well. Perhaps this would definitely
lead to a flourishing economy, since customer satisfaction.

 SUGGESTIONS AND RECOMMENDATIONS

1. Both the customers from SBI bank have suggested that the bank should open one of
its branches in industrial area like focal point.
2. One of the most common suggestions was to lower down the minimum balance
required in the saving s account.
3. Staff should be more co-operative to the customers.
4. Customers were not fully aware of the services and the various charges which they
have to pay. Therefore Banks should try to give some more information to its existing
customers

 BIBLIOGRAPHYWEBSITE USED

52
“VRS to hit Bank Capital Adequacy,” PNB Monthly Review, Jan. 2001.

Wheelen, Thomas, L. and Hunger, David J., Strategic Management and Business
Policy. (2004), Pearson Education, Delhi. P.127.

World Bank Report (2001). The Development and Regulation of Nonbank Financial
Institutions.

Basin .N, (2006). “Banking Development in India 1947 To 2007 Growth Reforms an
Outlook”. New Century Publication: New Delhi.

Uppal, R. K.(2012) “Customer Perception of E-Banking Services of Indian Banks:

Some Survey Evidence”. The ICFAI University Journal of Bank Management,
Volume-VII (1), 63-78

 REFERENCES

(1)Dutra, K. &Dutra, A. (2009). “Customer Expectation and Perception

Across the Indian Banking Industry and Resultant Financial Implications.”
Journal of Service Research, (9) 1, Sage Publications, pp. 31-49.

(2)Edwin, M.G. &Fatima, S. (2011). “Impact of Service Quality in Commercial Banks

and Customer Satisfaction: An Empirical Study.” International Journal of
Multidisciplinary Study, vol.1 (6) pp.19-37.

(3)Hallowell, Roger (1996). “The Relationship of Custom mer Satisfaction, Customer

Loyalty and Profitability: AnEmpirical Study.”The International of Service Industry
Management, 7 (4), Emerald, pp. 27-42

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(4) Kotovalas, K. &Shimkus, G.J. (2006). “An Examination of Relationship between
Service Quality Perceptions andCustomer Loyalty in Public & private Greek
Banks.”International Journal of Financial Service Management,
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(5)Naveen,K. & Gangal, V.K. (2011). “Customer Satisfaction in New Generation Ban
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(6) Nirmaljeet, V. & Prabhjot, K.M. (2012). “Customer Satisfaction: A Comparative

Analysis of Public & PrivateBanks in India.” Information and Knowledge
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(7) Mahalakshmi, V. & Sir van raj, M. (2011). “An Empirical Study on Customers’
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(8) Tyler, K. & Stanley,E (2001). “Corporate banking: The Strategic Impact of
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220

54
Annexure
QUESTIONNAIRE
Name
Age:
Gender:
1. Are you aware of net banking services offered by the banks?
(a) Yes (b) No

2. In which bank do you have your account?

(a) Axis bank (b) Union Bank Of India

(c) ICICI Bank (d) Punjab National Bank
(e) State Bank of India

3. Are you satisfied with your bank services?

(a) Yes (b) No

4. What are your main transactions you would prefer to do by internet?

(a)Money transfers (b) Checking of your current balance

(c)Create Fixed Deposits Online (d) Request a Demand Draft
(e)Pay Bills (f) Order a Cheque Book
(g)Request Stop Payment on a Cheque

5. Are you aware of the benefits of government services provided by SBI which are
available?

(a) Yes (b) No

6. Which government services do you using?

a) E-frieght b) ppf account
c) Fee collection d) E–auction and e-tendering
e) Tax payment f) Pension payment
g) Passport seva project

7. Do you view following factors of information important while investing in

Government services.

55
Sr No. F a c t o r s Strongly Disagree Disagree Neutral Agree StronglyAgree
1 S a f e t y

2 L i q u i d i t y
3 R e t u r n e a r n e d
4 T a x s a v i n g
5 Performance of past scheme s
6 Rating of mutual fund by Agencies
7 A d v e r t i s e m e n t
8 Recommendation of friends and family

56