Report on SBI’s Domestic Business Segments

Subject- Banking Operations & Financial Services

Submitted by Group 4
AIUSH KUMAR AGARWALLA 18202142 ASIS DAS 18202018
AKASH BOSE 18202144 DEBASHIS PARIDA 18202023
ALOK RATH 18202145 AKANKSHYA PANIGRAHI 18202006
VISHIST SURJAN 18202210 VENKATESH MAHATO 18202209
VIPUL TYAGI 18202140 ARATI AGRAWAL 18202216
ABHISEKH DAS 18202004
Various Domestic-Business Segments of SBI Are As Follows:-
I. Personal Loans
II. Education Loans
III. Real Estate & Housing Loans
IV. Auto Loans
V. Domestic Deposits
VI. NRI Business
VII. Agriculture Finance

Advances YoY Growth in

Domestic Business Market
FY 2016- FY 2017- FY 2018- Advances in
Segment Share
17 18 19 2018-19

Personal Loans
30% 1,02,414 1,19,379 1,53,698 22.3%
Education Loans
30.20% 21,059 20,719 20,777 0.3%
Real Estate & Housing
Loans 34.51% 2,37,664 3,41,013 4,00,372 14.8%
Auto Loans
35.45% 57,609 66,362 71,884 7.7%
Agriculture Finance
N.A 1,25,270 1,66,819 1,56,385 -6.7%

**As per the data available in the sustainability report we have calculated the YoY Growth in
Advances in FY 2018-19.

Deposits YoY Growth in

Domestic Business
FY 2017- FY 2018- Deposits in FY 2018-
Segment
FY 2016-17 18 19 19

Domestic Deposits 16,18,487 25,99,393 28,14,243 7.6%

NRI Business
1,85,908 1,99,011 2,03,594 2.3%

PERSONAL LOANS:-
 Personal loans as a product is a very popular offering from the huge stable of products in
SBI’s portfolio.
 Purely in terms of market share it commands precisely 1/3rd of the total market.
 In terms of targeting personal loan as an offering, is catered to various salaried segments
both belonging to the government sector & private sector.
 In the financial year 2018-19 itself 15 lakh customers were given advance of Rs 56,873 Crore.
Initiatives Taken By SBI To Better The Experience Of Personal Loan Customers Are As
Follows:-
 SBI has banked heavily on the alternative delivery channels to make the customer
experience richer.
 Using the ‘YONO’- You Only Need One, digital platform is able to reach out to most of its
customer & trying to deliver an effective & seamless experience.
 Through this app, it provides pre-approval loans through four product lines establishing its
ease of doing business, which in a traditional format would have been cumbersome.
 This has played a role in enhancing the customer experience. It has introduced the ‘Xpress
Credit Insta Top-up Loans’ to pre-approved Xpress Credit customers and ‘Tatkal e-Personal
Loans’ for non-salaried employees to increase customer experience.

EDUCATION LOANS:-
 Public sector banks are developmental entities & SBI not only understands this role but
enacts on this aspect, as it believes that education is the key component in human capital
management as it helps in developing employees who are appropriately skilled.
 SBI also realizes the bigger picture that higher levels of literacy will also accelerate the
economic progression of the country.
 This vision of SBI is well reflected by SBI’s market share of 30.20% in the education loan
products & apparently is also the market leader in this category.
 In the FY 2018-19 66,947 meritorious students have been advanced a total of Rs 3,635 crore.
 Governments ‘Beti Bachao, Beti Padhao Yojana’ is also well accepted & reflected in the
education loan advances of SBI & close to 35% of the total Rs 3,635 crore were given to girls.

Initiative Taken By SBI To Better The Experience Of Education Loan Customers Are As
Follows:-
 SBI has integrated its Loan Origination System (LOS) with the Government of India's (GOI's)
'Vidya Lakshmi Portal (VLP)'.
 This has led to better tracking of the loan applications.
 The loan sanctioning process has also become very fast.

REAL ESTATE & HOUSING LOANS:-

 In terms of real estate & housing loans also SBI is the largest player.
 SBI commands a market share of more than 1/3rd of the business precisely 34.51%.
 The YoY growth of these products is second highest in its portfolio with 14% growth in the FY
2018-19.
 PMAY- Prime Minister Awas Yojana scheme which is aimed at providing affordable housing
is clearly being implemented by SBI.SBI holds 64.46% of its home loan portfolio under
Affordable housing.
 SBI is constantly upgrading its home loan portfolio in order to fulfil its customer expectation.
 SBI has been adjudged as best home loan provider in the country under the PMAY MIG
category by the National Housing Board.
Initiatives Taken By SBI To Better The Experience of Real Estate & Housing Loan Customers
Are As Follows:-
 In this category also SBI has taken the digital route to better the customer experience.
 In the year FY 2018-19 using the YONO platform various initiatives like Insta Home Top-Up,
and another niche product like the SBI Smart Home Top-Up for the existing home loan
customers were launched.
 India is a regularly faces multiple natural calamities throughout the year keeping that aspect
in mind SBI introduced home loan schemes for Repair and Renovation within a month of the
calamity particularly after Kerala floods.
 The loans repayment terms were also made more lenient, irrespective of category, gender,
LTV ratio and risk score of the customers.

AUTO LOANS:-
 Auto loans particularly car loans are aimed at upgrading the standard of living of people.
 SBI understands this and in order to make it even easier for customers to access these loans
the rates have been kept very competitive.
 The auto loan portfolio was valued at approximately ₹ 71,884 crore as on 31st March 2019 &
the YoY growth is 7.6%

Initiatives Taken By SBI To Better The Experience of Auto Loan Customers Are As Follows:-
 The processing of loans or TAT (Turn Around Time) is one of the fastest for auto loans in SBI.
 For auto loans SBI has used multichannel sourcing by setting up small stalls where they are
initiating the process of auto loans.

DOMESTIC DEPOSITS:-
 The domestic deposits portfolio has two significant categories Savings Bank deposits & Term
deposits.
  On an overall level the domestic deposit portfolio grew by 8.27 % i.e. ₹ 28,14,243 crore
during FY 2018-19.
 The Domestic Savings Bank deposit registered a YTD growth of 8.58 % i.e. ₹ 10,85,151 crore
while the term Deposit portfolio, despite declining interest rates, has registered a YTD
growth of 8.13% i.e. ₹ 15,26,958 crore during FY 2018-19.

NRI BUSINESS:-
 SBI is the biggest public sector bank of India & is also present in overseas but it also need to
cater to NRI (Non-Residing Indian) from within the country.
 SBI has 93 dedicated Non-Residing Indian (NRI) branches in India which are well connected
to foreign offices.
 The Bank has offered services to approximately 3.7 million customers as on 31 Marchst

2019.

Initiatives Taken by SBI to Better the Experience of NRI customers Are As Follows:-
 SBI has established correspondent banking relations with 234 global banks, 55 exchange
houses and six banks (in Middle East) to facilitate remittance.
 Wealth management platform is also available for Gulf Cooperation Council Countries'
(GCCs) NRI clientele.

AGRICULTURE FINANCE:-
 SBI’s total agri advances for FY 2018-19 was approximately ₹ 2,02,681 crore.
 SBI realizes the importance of agriculture in the sector there by from the last three years it
has surpassed the credit flow target of the government.

FY Year Government Target Achieved Target Percentage Achieved

2016-17 95,168 1,25,270 132%

2017-18 1,05,741 1,66,819 158%

2018-19 1,16,315 1,56,385 134%

Initiatives Taken By SBI Across Its Services To Enhance Customer Experience Are As
Follows:-
 SBI has incorporated the STEPS at the core of its value system. Expanded to its true form, the
acronym STEPS would stand for Service, Transparency, Ethics, Politeness and Sustainability.
These values help the bank realize its overarching mission of providing simple, responsive and
innovative financial solutions to its customers. Satisfied customers are the bedrock for any
financial institution or institution for that, to sustain and thrive in this super competitive age.
 It would logically follow then that, customer experience would serve as a key differentiator
for any bank. SBI, on its part has undertaken several initiatives to provide an enhanced
customer experience.
 It has launched a promising initiative under the name ‘Project Vivek’ for a new Credit
Underwriting Engine for Small and Medium Enterprises Financing. This has resulted in a
reduction of the Turn Around Time for the processing of the loans which has garnered positive
reviews for the bank. This efficient, hassle-free process and time bound disbursal has helped
the bank to gain traction in the market through faster loan disbursals.
 Innovation has played a pivotal role in shaping most of the new-age financial products. SBI,
too has heavily invested in new age technologies like Data Analytics to create an enriching
experience for its users. Banking process is as good as the processes running it. When we
couple it with the user, its power increases exponentially. Few of the initiatives where
innovation has been the key are Chat Bots, Smart Customer Feedback and Smart Response to
emails.
 Chat Bots: - SBI Voice Assistant (SIVA) is a transactional and FAQ Voice Bot powered by
emerging technologies like Machine Learning and Natural Language Processing. The objective
is to provide voice-based alternate banking channels for routine banking needs.
 Smart Customer Feedback: - Customer feedback analytics helps get instant customer feedback
on service quality at the customer home branch.
 Smart Response to Emails: - It is an Artificial Intelligence based segregation for complaint
resolution, which understands and identifies customers’ queries and directs them to the
targeted desk, using machine learning and natural language processing.
 These initiatives have added to the overall customer experience and has created an alternate
delivery medium for delivering banking services other than the traditional means.
 Customer Experience Excellence Project (CEEP) is another such initiative to foster customer
experience. CEEP has been conducted across 5464 branches throughout India. These branches
are equipped with anytime channel machines like ATMS, recyclers, SWAYAMS, electronic
cheque drop boxes and internet enabled PCs. It has led to an improvement in crowd
management, reduction in waiting time, service and process time.