DEPARTMENT OF MANAGEMENT OF

BUSSINESS ADMINISTRATION

VIGNANA BHARATHI INSTITUTE OF TECHNOGY

(Affiliated to JNTU, HYDERABAD)

This is to certify that the “STATE BANK OF INDIA” has been submitted by
Vinayak Kumar Sharma the Roll No: 3560.

Project Guide Head of the Department

(MR.RAJU GOLE ) (DR.SV.RAMANA)

External principal
 INDEX

Chapter 1
 Introduction

 History and Evaluation

Chapter 2

 Scope of the study

 Objectives of SBI

 Research methodology of SBI

 Finding of the study

 Limitation of the SBI

 Questionnaire

 Data interpretations

 Conclusion

 Reference

 Comparative statement analysis

 Trend analysis

 Ratio analysis

 Findings

 Suggestions

 Conclusion
Introduction of State Bank of India:

In India, SBI is one among all the biggest commercial banks. it commands one fifth loans and
deposits of each and every programmed commercial bank and also contains an enormous
network of about 9000 branches i.e., around 14% of all branches of bank in India. A network of
about, numerous non-banking subsidiaries and eight banking subsidiaries are included by state
bank group which offers fund management credit cards, merchant banking services, primary
dealership in government securities, insurances and factoring services.

The eight banking subsidiaries include:

State bank of Hyderabad (SBH).

State bank of Travancore (SBT).
State bank of Indore (SBIR).
State bank of Patiala (SBP).
State bank of Bikner and Jaipur (SBBJ).
State bank of India (SBI).
State bank of Maharashtra (SBM).
State bank of saurashtra (SBS).

At present, the SBI across all the times Zones included a network of branches and around the
world it has widened its arms. By mean of its four wings such as a foreign offices division,
International services division, the domestic division and the foreign department the international
banking group of distributes the cross-border finance solution in complete range.

History and evaluation of State Bank of India:

The evolution of State Bank of India can be traced back to the first decade of the 19th century. It
began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was
redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever joint-
stock bank of the British India, established under the sponsorship of the Government of Bengal.
Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras
(established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the
modern banking scenario in India, until when they were amalgamated to form the Imperial Bank
of India, on 27 January 1921.

An important turning point in the history of State Bank of India is the launch of the first Five
Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in
general and the rural sector of the country, in particular. Until the Plan, the commercial banks of
the country, including the Imperial Bank of India, confined their services to the urban sector.
Moreover, they were not equipped to respond to the growing needs of the economic revival
taking shape in the rural areas of the country. Therefore, in order to serve the economy as a
whole and rural sector in particular, the All India Rural Credit Survey Committee recommended
the formation of a state-partnered and state-sponsored bank.
The All India Rural Credit Survey Committee proposed the takeover of the Imperial Bank of
India, and integrating with it, the former state-owned or state-associate banks. Subsequently, an
Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India
(SBI) was established on 1 July 1955. This resulted in making the State Bank of India more
powerful, because as much as a quarter of the resources of the Indian banking system were
controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was
passed in 1959. The Act enabled the State Bank of India to make the eight former State-
associated banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried out by the 480
offices comprising branches, sub offices and three Local Head Offices, inherited from the
Imperial Bank. Instead of serving as mere repositories of the community's savings and lending to
creditworthy parties, the State Bank of India catered to the needs of the customers, by banking
purposefully. The bank served the heterogeneous financial needs of the planned economic
development.

State Bank of India (SBI) (NSE: SBIN, BSE: 500112, LSE: SBID) is the largest banking
and financial services company in India by revenue, assets and market capitalization. It is a state-
owned corporation with its headquarters in Mumbai, Maharashtra. As of March 2012, it had
assets of US$360 billion and 14,119 branches, including 173 foreign offices in 37 countries
across the globe. Including the branches that belong to its associate banks, SBI has 21,500
branches.
The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding
in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian. Bank of
Madras merged into the other two presidencies banks—Bank of Calcutta and Bank of Bombay—
to form the Imperial Bank of India, which in turn became the State Bank of India.
The Government of India nationalized the Imperial Bank of India in 1955, with the Reserve
Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the
government took over the stake held by the Reserve Bank of India. SBI has been ranked 285th
in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012.

SBI provides a range of banking products through its vast network of branches in India and
overseas, including products aimed at non-resident Indians (NRIs). The State Bank Group has
the largest banking branch network in India. SBI has 14 local head offices situated at
Chandigarh (Punjab & Haryana), Delhi, Lucknow (Uttar Pradesh), Patna (Bihar), Kolkata (West
Bengal), Guwahati (North East Circle), Bhuwaneshwar (Orissa & Chattisghad)), Hyderabad
(Andhra Pradesh), Chennai (Tamil Nadu), Trivandrum (Kerala), Bangalore (Karnataka),
Mumbai (Maharashtra), Bhopal (Madhya Pradesh) & Ahmadabad (Gujarat) and 57 Zonal
Offices that are located at important cities throughout the country.

SBI is a regional banking behemoth and is one of the largest financial institutions in the world. It
has a market share among Indian commercial banks of about 20% in deposits and loans. The
State Bank of India is the 29th most reputed company in the world according to Forbes. Also,
SBI is the only bank featured in the coveted "top 10 brands of India" list in an annual survey
conducted by Brand Finance and The Economic Times in 2010.
The State Bank of India is the largest of the Big Four banks of India, along with ICICI
Bank, Punjab National Bank and HDFC Bank—its main competitors.

Branches:

The corporate center of SBI is located in Mumbai. In order to cater to different functions, there
are several other establishments in and outside Mumbai, apart from the corporate center. The
bank boasts of having as many as 14 local head offices and 57 Zonal Offices, located at major
cities throughout India. It is recorded that SBI has about 10000 branches, well networked to
cater to its customers throughout India.

ATM Services:

SBI provides easy access to money to its customers through more than 8500 ATMs in India. The
Bank also facilitates the free transaction of money at the ATMs of State Bank Group, which
includes the ATMs of State Bank of India as well as the Associate Banks – State Bank of
Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc. You may also transact
money through SBI Commercial and International Bank Ltd by using the State Bank ATM-cum-
Debit (Cash Plus) card.
ABOUT LOGO

THE PLACE TO SHARE THE NEWS ...……

SHARE THE VIEWS ……

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.
The eight banking subsidiaries are:

State Bank of Bikaner and Jaipur (SBBJ)

State Bank of Hyderabad (SBH)
State Bank of India (SBI)
State Bank of Indore (SBIR)
State Bank of Mysore (SBM)
State Bank of Patiala (SBP)
State Bank of Saurashtra (SBS)
State Bank of Travancore (SBT)

Personal Banking:

SBI Term Deposits SBI Loan for Pensioners.

SBI Recurring Deposits Loan against Mortgage of Property.
SBI Housing Loan against Shares & Debentures.
SBI Car Loan Rent plus Scheme.
SBI Educational Loan Med-Plus Scheme.

Other Services:

Agriculture/Rural Banking.
NRI Services.
ATM Services.
Demat Services.
Corporate Banking.
Internet Banking.
Mobile Banking.
International Banking.
Safe Deposit Locker.
RBIEFT.
E-Pay.
E-Rail.
SBI Vishwa Yatra Foreign Travel Card.
Broking Services.
Gift Cheques.
Current Board of Directors:

After the end of O. P. Bhatt's reign as SBI chairman on 31 March 2011, the post was taken over
by Pratip Chaudhary, who is the former deputy managing director of the international division of
SBI. As of 4 August 2011, there are twelve members in the SBI board of directors,
Including Subir Gokarn, who is also one of the four deputy governors of the Reserve Bank of
India? The complete list of the Board members is:

1. Pratip Chaudhary (Chairman)

2. Hemant G. Contractor (Managing Director)
3. Diwakar Gupta (Managing Director)
4. A Krishna Kumar (Managing Director)
5. Dileep C Choksi (Director)
6. S. Venkatachalam (Director)
7. D. Sundaram (Director)
8. Parthasarathy Iyengar (Director)
9. G. D. Nadaf (Officer Employee Director)
10.Rashpal Malhotra (Director)
11. D. K. Mittal (Director)
12. Subir V. Gokarn (Director)
Importance of the SBI

The first thing that any senior officer in State Bank of India (SBI) will point out to you is its sheer size
— and explain why it cannot be compared to the rest of the players in India’s banking industry.
Though SBI is not really huge by global standards (it is ranked 60th in the world with a balance sheet
of nearly $277 billion, compared to Citibank’s $2.3 trillion), it is gargantuan compared with any
Indian bank. It is the equivalent of the next three largest domestic banks — ICICI Bank, Punjab
National Bank and Bank of Baroda — rolled into one and accounts for one-fifth of India’s banking
business. And it has been doubling in size every five years. In almost every business it is in, SBI is by
far the biggest player.

It is the largest mortgage lender (home loans), bigger than HDFC. It’s the largest car financier
(individuals) and the largest credit card issuer. It has nearly 175 million savings accounts (it opened
nearly 29 million in FY13). And sees about 2,000 transactions a second taking place across its
network of close to 14,500 branches. That’s nearly 15 billion transactions a year. If trends are an
indication, SBI’s balance sheet will double again in five years.

Size, unfortunately, is a double-edged sword. The problems that SBI faces are also bigger than any
other bank’s. First, over the next five years, it needs to raise the kind of financial capital that is
unprecedented in the country — over Rs 1.5 lakh crore — and which will test the fiscal strength of its
primary owner, the government of India. It is also looking at a looming human capital crisis — with
60-odd top executives expected to retire over the next three years. It has to contend with a huge
quantum of non-performing assets (NPA) — over Rs 50,000 crore — despite its aggressive efforts to
deal with them for the past few years.

And, it faces massive problems in managing the organisational capital of its complex structure and, by
extension, its political capital. The first two issues are especially knotty, and the top management of
SBI acknowledges that they will need some deft handling if they are not going to become full-blown
crises.

Capital Ideas

SBI will need about Rs 1.5 lakh crore in tier 1 (equity) capital over the next five years. A significant
amount is expected to come from internal accruals (retained earnings out of net profits); after
dividends and other appropriations, that will be Rs 11,000-12,000 crore in FY13, which adds up to Rs
80,000-90,000 crore over five years. “That implies Rs 60,000-70,000 crore in fresh equity capital
infusion,” says A.S.V. Krishnan, senior analyst at Ambit Capital. “A fiscally stretched government
will not be able to provide that; can SBI go to the capital markets every 15 months or so?”

But Diwakar Gupta, managing director and CFO, SBI, is not unduly worried. “The government’s
share in SBI is about 63 per cent,” he says. “An 8 per cent dilution in the government’s ownership
over the next five years can help raise that capital.” That is one of the scenarios in his book, a dilution
of about 2 per cent each time within the next five years; for now, he estimates that the bank is
comfortably positioned until FY15.

“It’s not clear the assumed growth in retained earnings can be sustained for an extended period,” says
the head of research at a leading securities firm. “Return on assets (RoA, a key performance metric)
will have to grow faster; SBI’s is less that 1 per cent.” Over the past two years, it actually fell —
blame the write-downs following the substantial spike in NPAs — from 1.02 per cent at the end of
December 2011 through 0.95 per cent in end-December 2012 to 0.89 per cent for FY13. “NPAs could
go up for another couple of quarters,” admits R. Venkatachalam, deputy managing director and chief
credit and risk officer, SBI. “But not all NPAs are to be written off. About two-thirds are restructured
accounts; of the nearly 5 per cent of loan assets in NPAs, 3 per cent have already been fully provided
for.”

True, chairman Pratip Chaudhari and his senior team have aggressively attempted to reduce NPAs,
but the persistent economic slowdown has dented their efforts. Gross NPAs are at Rs 51,189 crore,
4.75 per cent of total assets in March. In FY11, NPAs were at Rs 25,328 crore, or 3.28 per cent. SBI
continues to lend aggressively too: its asset book grew by over 20 per cent in FY13.

“Can SBI raise its RoA by 10-15 basis points?” asks Krishnan. That means more selective credit, but
perhaps lower growth in retained earnings. If so, will the capital markets oblige if SBI seeks more
equity capital? Many recent issues — especially large ones — have needed support from government-
owned institutions such as the Life Insurance Corporation. Granted, good companies have managed to
raise the money they needed; the trouble for SBI is that it may have to go back to the markets almost
every year; that could put pressure on even the most adventurous institutional investor.

IN SBI NEW OPTION

SBI Capital Markets

A merchant bank earlier, SBI Caps is yet to make the transition to a modern investment bank. But
there is one area it is big in: syndications. An investment banker dubs it an extended corporate finance
arm of SBI; is that true? “We worked with Bharat Petroleum on an African oil buy, and another for
Gulf Oil,” says Arundhati Bhattacharya, MD& CEO, SBI Caps. “Dealogic ranked us ninth last
year in their global syndication ranking.” But she admits SBI Caps has not lever- aged opportunities
well. So now, reorganisation. Syndication is largely infrastructure-related, and is one big piece; the
parent bank is big in infrastructure underwriting, though she says deals come from the rest of the
banking community too. Mergers and acquisitions and non-infrastructure syndications are another
business line. The third piece is capital markets and private equity.

SBI Life Insurance

It’s second only to LIC in size and is easily SBI’s most profitable non-bank arm. “Our net profit in
FY12 was Rs 556 crore,” says Atanu Sen, MD. Unlike most other life insurance players, SBI Life
hasn’t required capital infusions since 2008, and Sen doesn’t believe it will need any for the next two
years either. While the branch network is a big plus in keeping costs down, it continues to use agents
to sell products. The simpler products — term life insurance products, for instance — are more easily
sold through the branch network; credit life assurance is one example. Homebuyers who borrow from
SBI can also buy a life insurance plan from SBI Life. “In case the borrower dies, the insurance policy
pays off the loan,” says Sen. “This covers 50 per cent of the incremental home loan portfolio.” The JV
with BNP Paribas Cardiff is a profitable one that others haven’t been able to replicate.

SBI Mutual Fund

Size may not be everything for a an asset management firm, but when you are a part of
the nation’s biggest bank, it does. SBI Mutual Fund is ranked sixth among mutual
funds in India, with assets under management (AUM) of Rs 53,000 crore in end-
December 2012. But does an SBI Mutual Fund make strategic sense, given the parent
bank’s scale? “Relationship banking goes beyond transactional banking, and customers
want more,” says Deepak Chatterjee, MD, SBI AMC. But when the industry’s AUM
is declining and fewer people are interested in mutual funds, many question that. “We
still make a profit of Rs 60 crore a year,” Chatterjee argues. “And we return 23 per cent
on our net worth.” It’s a dilemma faced by other bank- backed AMCs too; in
Chatterjee’s case, the size of the parent makes SBI AMC look more humble.
Objectives of State Bank of India:

State Bank of India has been able to make its mark in all facets of banking operations, be it
traditional, developmental or innovative. In the medium term, the Bank's corporate objectives are
to continue to be the premier Bank of Madhya Pradesh with a national perspective, ensuring
progressive corporate excellence using state of the art technology.

To create and maintain assets of quality so as to emerge as a healthier and stronger Bank as per
 parameters of international standards, while maintaining the social orientation and national
objectives.

To emerge as an important component and strong representative of State Bank Group in its 'core
area' of operation and carve out a well defined position within the group.

To provide impeccable and progressively better customer service with total involvement of staff.

SCOPE OF State Bank of India:

State Bank of India (SBI) may not cut lending rates further unless the Reserve Bank of India eases its
stance, chairman Pratip Chaudhuri indicated in the weekend, even though finance minister P
Chidambaram prodded public sector banks to lower rates for consumer loans to re

―Let‘s see. There is already a response and if there is evidence that lowering of rates lead to increase
in business, then only we will lower rates. But already our base rate is the lowest. That (lowering of
rates) will depend on what signal RBI gives,‖ Chaudhuri told FE.

SBI recently lowered lending and deposit rates by 25 basis points but the move was not replicated by
other public sector banks.
Vive the sagging manufacturing sector.

Most banks have not fully responded to the RBI‘s 50 bps rate cut in April, and that has kept bank
lending rates high even though credit growth has slowed in tandem with a decline in the economic
growth to a nine-year low of 6.5% in 2011-12.
Chaudhuri refrained from forecasting whether the RBI would lower rates this fiscal.

The SBI chief refrained from forecasting a rate cut by RBI now that economic growth was being
forecast to fall below 6% by private analysts and as inflation has inched down to below 7% in July.

The slowdown in the economy has taken a toll on the asset quality of banks, including SBI, whose
net non-performing assets rose to 2.22% at the end of June from 1.61% a year ago. But Chaudhuri
said the bank was aiming to bring it down in the next two quarters.

―Of course, we will bring it (NPA) down in second and third quarters. It is difficult to give a number.
It depends on a number of factors that is outside the purview of the bank,‖ he said, adding that NPAs
have gone up because some companies have not got clearance or land for their projects. ―But it
(NPA ratio) will look better in coming quarters,‖ he said.

The global scenario looks gloomier and that will calibrate SBI‘s expansion plans. ―Overseas
expansion makes sense if you can mobilize deposits. Without deposits, if you just have to lend, then
it does not make much sense. Secondly, we are now present in almost all geographies,‖ Chaudhuri
said.

SBI was willing to expand where Indian companies increase their toehold. ―We will go wherever
Indian companies go. When Adani buys a port in Australia or the Tata‘s go for a JLR (Jaguar Land
Rover) acquisition that is where we can go, because we can collateralize the Indian asset.
We will like to follow the Indian companies. All these regions (Latin America, Africa and Asia) are
on the radar but not in a big way,‖ Chaudhuri said.

He ruled out overseas acquisitions, especially in Europe, saying such a move will only deplete the
bank‘s capital without ensuring high returns.

―We have to pay a huge premium over the book (value) and that is capital depleting. The RoE

(Return on equity) in these businesses is not as high as in India. In India, my RoE is 17-18%.
Why should I go there if RoE is lower? In European businesses, RoE is 5-6%.‖

COLLECTION OF DATA:-
The data can be collected from primary and secondary sources. The basic premises of my study is
primary data .Convenient sample that was representative of the target market was chosen, the
respondents were contacted personally and the instrument used for collecting data is
questionnaire.
Statically data classify into two categories:-

1) Primary Sources

2) Secondary Sources

Primary data

Primary data is collected by using the questionnaire method.

Secondary data
The Main sources of Secondary data are combination of information from the internet and books
of the related topic.

Sample size:-

Sample of 30 people was taken into study, and their data was collected.

Sampling techniques;-

To study the Project, a Simple Random Sampling technique is used.

Data Analysis:-

After data collection, I’m able to analyze customer’s views, ideas and opinions
related to services of the state bank of India and SBI will come to know the
customer requirements.

Data Interpretation: -

Interpretation of data is done by using statistical tools like Pie diagrams, Bar
graphs, and also using quantitative techniques (by using these techniques)
accurate information is obtained
The analysis and interpretation of data is done using charts and graphs tool of MS-Excel .

1. Age group and distribution of male and female customer dealing with SBI.

64%

MALE (19)
FEMALE (11)
30%

17%

7% 7%
10% 3%
13% 13% 0% 0% 36%

0-18 18-25 25-40 40-60 60 ABOVETOTAL MALE

AND FEMALE

When I did survey of 30 people I came to know in the group of below 18 there were more no. of
female who’s sbi bank account more than male. I also came to know in mature male above age
of 18 and age between 25-40 uses sbi account more than female. According to my survey 64%
male uses sbi account while female use only 36%.
2. OCCUPATION OF THE CUSTOMER.

33%
MALE (19)
FEMALE(11) TOTAL(30)

23%
20%
17% 17 % 17%
14% 14%
13%
10 % 10%

3% 3% 3% 3%

According to my survey 33% salaried respondent uses sbi bank account within that 23%
male and 10% were female. 17% businessman/women respondent uses sbi bank account
within that 14% male and 3 % female only. 13%professional person uses sbi bank
account within that 10% male and 3% female. 20% respondent are housewife/husband
within that 3% male and 17 % female. 17% respondent are others within that 14% are
male and 3% are female.
 3. DISTRIBUTION OF THE CUSTOMER AS PER THEIR INCOME.

40%

30% 30% 30%

23%
MALE(19)
20%
FEMALE(11) TOTAL(30)

10%10%
7%

0% 0% 0%

RS.1,00,000 (9) RS.1,00,000 -RS.2,50,000 - RS.ABOVE RS.4,00,000

RS.2,50,000 (12)4,00,000 (9)

According to my survey 30% of the respondent uses sbi bank account who’s income was below
Rs.1,00,000 within that 10% male(no. of respondent are 3) and 20% female(no. of respondent
are 6). 40% of the respondent uses sbi bank account who’s income was between Rs.1,00,000 –
Rs.2,50,000 within that 30% respondent are male (no. of respondent are 9) and 10% female( no.
of respondent are 3). 30% of the respondent uses sbi bank account who’s income was between
Rs.2,50,000-Rs.4,00,000 within that 23% respondent are male (no. of respondent are 7) and 7%
female( no. of respondent are 2).
4. MOST IMPORTANT REASON FOR CHOOSING SBI BANK.

STATE BANK OF INDIA

3%
17%

TRADITIONAL ACCOUNT
30% BRAND NAME
10% SERVICE
ATM
NET BANKING LOCATION OTHER

6%
24%
10%

When question was asked what are the most important reason for choosing sbi bank then
30% said because of it is near by their location, 24% said because of its service, 17%
choose because they have traditional account, 10% choose because of its brand name.
10% choose because of Atm. 6% for net banking, 3% for any other reason.
5. Services taking from bank.

0%
7%

10%

SAVING A/C
CURRENT A/C NRI A/C
ANY OTHER

83%

According to my survey 83% of respondent uses sbi bank for saving account, 10% uses
for the current account and 7% for any other services.
6. SERVICES SATISFACTION.

22%
ATM
LOAN
40% EARLY CHEQUE CLEARANCE NET BANKING
PHONE BANKING INTEREST
ANY OTHER
7%

7%

10%
7%
7%

When question was asked which service satisfies you most then 40% said its ATM
because it is easy to use and nearby their location.10% Think that is net banking is quite
better. 7% are satisfied with about interest rate which is offered by the bank. 7%think
cheque get clear very early and 7% think it is quite easy to take loan from SBI bank .7 %
think its phone banking service is really good and rest of the 22 % satisfied with its other
services.
7. REASON FOR TYPICALLY VISITING THE BRANCH.

TO MAKE DEPOSIT
6%3%

17% TO GET ADVICE FOR

0% INVESTMENT
74% TO ENQUIRY ABOUT BALANCE

TO WITHDRAW CASH

ANY OTHER REASON

According to my survey 74% respondent visits the branch for making deposit.17% visits
for to the enquiry about balance. 3% to withdraw cash and rest of 3% for any other
reason.
8. Q.] If you are provided with better service by optional bank. Would you like to move to other
bank .

A.]

YES (19)
NO (11)

64%

When question was asked would you like to move other bank if you are provided with
good services then 64% wants to move in another bank while remaining 36% want to
stay with the bank.
9. Q.] Are you satisfied with your financial transactions with the bank?

A.]

10%

36%
VERY SATISFIED (11)
24% SATISFIED (9) SOMEWHAT SATISFIED (7) DISSATISFIED (3)

30%

According to my survey 36% of respondent said that they are very satisfied with the
financial transactions of the bank while 30% said that they are happy with its services.
24% think its services are quite satisfied while remaining 10% are not satisfied with its
services.
 10. Q.] When do you think of your bank what comes first in your mind.

A.]

7%
13%

17%
PERSONALIZED SERVICE
WIDE BRANCH NETWORK CUSTOMER SERVICE COMPUTERIZED BANKIN

63%

When question was asked what comes first in your mind about SBI bank 63% said it has wide
branch network. 17% thinks its customer services. 13% said its personalized services and 7%
think its computerized banking.
11. Q.] Are you able to use banking services online?

A.]

40%
YES (12)
NO (18)

60%

From the above table 40% respondent (no. of respondent are 12) of its customer are able
to use internet banking service while 60% (no. of respondent are 18) of respondent are
not able to use.
12. Q.] What is the major purpose for which you use the online banking?

A.]

8%
16%

ONLINE TICKET BOOKING (2)

ONLINE BILL PAYMENT (4) BALANCE CHECK (5)

43% ANY OTHER (1)

33%

According to my survey 40% (total no. of respondent are12 out of 30) of its customer
who use internet banking of which 16%(no. of respondent are 2 out of 12) use online
banking to book tickets,33% (no. of respondent are 4 out of 12) use for to make bill
payment,43%( no. of respondent are 5 out of 12) use for checking balance only rest 8%
(no. of respondent are 1 out of 12) use for other services like mobile recharge.
13. Q.] Are you satisfied with online banking?

A.]

17%

YES
NO

CANNOT SAY
25% 58%

According to survey 58% people are satisfied with its services while 25% are not
satisfied and remaining 17% are confused .
 14. Q.] What is your feedback regarding the bank’s Customer Service Representatives?

A.]

20% ANSWER CALLS QUICKLY

37% KNOWLEDGE ABOUT BANKING

PRODUCT
KNOWLEDGE ABOUT BANKING
SERVICES
13% BANKING ISSUES HANDLED QUICKLY
GOOD COMMUNICATION

17%
13%

When question was asked feedback of its customer services representative 37% people think
they are answer call quickly, 13% think they have good knowledge about banking product, 17%
people think its customer service representative are well aware about its banking services, 13%
people think they handle customers query very nicely and rest 20% thinks there communication
skill is good.
 15. OVERALL SATISFACTION OF THE CUSTOMER.

7%

20%
37% EXCELLENT
GOOD SATISFACTORY AVERAGE
BELOW AVERAGE

13%

23%

When question was asked about of its services, product, customer relationship 37%
people rated SBI is excellent in its offering, 23% people rated it as good and they are happy with
its overall services, 13% rated it as satisfactory but they are not much satisfied with some of its
services, 20% people rated it as average because they are happy with only its few services and
rest 7% rated it as below average.
Achievements of SBI:

The State Bank of India has won the prestigious Asian Banker Achievement Award for being the
strongest bank in Asia Pacific region, instituted by the Qatar Financial Centre Authority and the
Asian Banker magazine.

The award is in recognition to SBI‘s combination of financial performance and key business
improvements, making it the region‘s strongest bank with strong and steady income growth rates
of 29 per cent, 14 per cent and 28 per cent for the past three years, the magazine said in the
award citation.

Already the largest bank in a the second fastest growing large economy, the state-owned lender
has attracted customers and talent from the private sector and other state-owned banks, as well as
market share in deposits and loans, the citation added.

The award looks at the long-term performance of banks by assessing them over a three-year
period, and plays an important role in cultivating a culture of excellence among leaders and
senior management in the banking industry in Asia and the Gulf Region.

The SBI has also won the Asian Banker transaction banking award: Winner of achievement
award for trade finance in India. In the past two years, SBI became the largest bank by market
capitalization.

As a key development project, the bank has launched a new core banking system and multiple IT
reinvigoration project, while speeding up a programmer to integrate subsidiary banks, all
improvements which help make SBI the strongest bank in the region and the one to watch for the
years to come.

―We are happy to have received these awards which are a testimony to our untiring efforts over
the past few years. The contribution of the international business to our balance sheet is
substantial and we have set ourselves the target of increasing this to 25 per cent in three years. I
can say that we aspire to be amongst the top five banks in Asia quite soon,‖ chairman Om Prakash
Bhatt reacting to the award.
SERVICES:

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.

· ONLINE TRADING

· ATM SERVICES
· GIFT CHEQUES
· INTERNET BANKING
· FOREIGN INWARD REMITTANCE

· LOCKER

· CARDS

ONLINE TRADING:
State Bank of India (SBI) now introduces you to a State-Of-Art broking predominantly to cater
to every broking need and offers a truly world class experience of online investing –anyplace,
anytime. Buying and selling of shares is now just a click away.

Our value proposition is based on Unmatched Expertise, State-Of-Art Technology And

Operational Ease that will redefine the way India trades. With us you have the power of
research expertise to aid you in making the right decisions, operational ease allowing you to
seamlessly execute your transactions, timely advice that helps you pick the right opportunities
and a customized trading experience to suit your needs and demands. So go ahead and enjoy
your fast, easy and hassle-free trading experience with the India‘s largest bank.

State Bank of India in alliance with SBICap Securities Limited and Motilal Oswal Securities
Limited now offers you an online trading account which will let you trade from the comfort of
your home or office either through the internet. This service provides you with a 3-in1 account
which is an integrated platform of savings bank a/c, demat a/c and an online trading a/c to give
you a convenient and paper free trading experience under one roof.
FINANCIAL STATEMENT ANALYSIS

The significance of financial statements lies not in their preparation and presentation, but in their
analysis and interpretation. This involves a study of relationship among various financial factors
and an ability to judge their meaning and significance. The financial analysis must understand
the plans and policies of management, determine relationship among financial figures and make
interpretations in simple unbiased way.

Types of analysis:

The process of analysis may be classified based on the nature of information used and on the
basis of ‗methodology‘ of operations.

1. On the basis of Nature of Information used:

a. External Analysis
b. Internal Analysis

2. On the basis of methodology of operations:

a. Horizontal analysis
b. Vertical analysis

METHODS OF FINANCIAL STATEMENT ANALYSIS:

The following methods of analysis are generally used:

1. Comparative statement

2. Trend analysis

3. Common size statements

4. Funds flow analysis

5. Ratio analysis
COMPARATIVE STATEMENT ANALYSIS:

Comparative financial analysis refers to comparison of financial statements pertaing to two

different periods by putting them side by side and finding out the changes in absolute and
relative changes.

Points be noted.

1. The financial date that is to be compared should be properly defined. A particulars account
head must have the same connotation for all the periods of comparison.
2. It is preferable to present financial information in ‗vertical‘ or ‗statement‘ form.
3. The comparative financial statement must reveal changes in both ‗absolute ‗ and
‗relative‘ measures.
 Comparative statement of analysis of SBI
For the year ending 31st march, 2019 and 2020

Particulars Schedule NO: 31.03.2019 31.03.2018

Capital 1 892,46,12 892,45,88

Reserves & Surplus 2 220021,36,33 218236,10,15

Deposits 3 2911386,01,07 2706343,28,50

Borrowings 4 403017,11,82 362142,07,45

Other liabilities & provisions 5 145597,29,55 167138,07,68

Total liabilities 3680914,24,89 3454751,99,66

ASSETS

Cash & balance with RBI 6 176932,411 150397,18,14

Balance with bank 7 4557,6940 41501,46,05

`investment 8 967021,94,75 1060986,71,50`

`Advances 9 2185876,91,77 1934880,18,91

`Fixed Assets 10 39197,56,94 39992,25,11

Other Assets 266327,70,28 226994,19,95

Total assets 366809,14,24,89 3454751,99,66

Contingent liabilities 11 1116081,45,94 1162020,69,30

Bills for collection 12 70022,53,97 74027,90,24

Trend Analysis:

Trend analysis calculates the percentage change for one account over a period of time of two
years or more.

Calculation notes:

1. 20X0 is the earlier year so the amount in the 20X0 column is subtracted from the
amount in the 20X1 column.
2. The percent change is the increase or decrease divided by the earlier amount (20X0 in
this example) times 100. Written as a formula, the percent change is:

If the earliest year is zero or negative, the percent calculated will not be meaningful. N/M is
used in the above table for not meaningful.

Most percents are rounded to one decimal place unless more are meaningful.

A small absolute dollar item may have a large percentage change and be considered
misleading.

Trend percentages:

To calculate the change over a longer period of time—for example, to develop a sales trend—
follow the steps below:

1. Select the base year.

2. For each line item, divide the amount in each nonbase year by the amount in the
base year and multiply by 100.
3. In the following example, 20W7 is the base year, so its percentages (see bottom half of
the following table) are all 100.0. The percentages in the other years were calculated by
dividing each amount in a particular year by the corresponding amount in the base year
and multiply by 100
 Trend analysis of SBI
For the year ending 31st march, 2019 and 2018

Particulars 31.03.2019 31.03.2018 Increase (%) Decrease (%)

CAPITAL AND LIABILITIES
Total share capital 635.00 671.04 57.32 ----
Equity share capital 635.00 671.04 57.32 ----
Share application money 0.00 0.00 ---- ----
Preference share capital 0.00 0.00 ---- ----
Reserves 64351.04 83280.16 29.41 ----
Revaluation reserves 0.00 0.00 ---- ----
Net worth 64986.04 83951.20 29.18 ----
Deposits 933932.81 1043647.36 11.74 ----
Borrowings 119568.96 127005.57 6.21 ----
Total debt 1053501.77 1170652.93 11.12 ----
Other liabilities & provisions 105248.39 80915.09 ---- 23.11
Total liabilities 1223736.20 13355190.22 9.13 ----

ASSETS
Cash & balance with RBI 176932.41 150397.18 ---- 42.71
Balance with banks 45557.69 41501.46 51.29 ----
Advances 2185876.92 1934880.19 14.65 ----
Investments 967021.95 1060986.72 5.61 ----
Gross block 13189.28 14792.33 12.15 ----
Accumulated depreciation 8757.33 9658.46 10.29 ----
Net block 4431.95 5133.87 15.83 ----
Capital work in progress 332.23 332.68 0.13 ----
Other assets 43777.85 53113.02 9335.17 ----
Total assets 1223736.20 1335519.24 9.13 ----
Contingent liabilities 1116081.46 1162020.70 19.26 ----
Bills for collection 70022.54 74027.90 ---- 1.75
Book value(rs) 1023.40 1251.05 22.24 ----
Ratio Analysis:

Financial ratio analysis is a fascinating topic to study because it can teach us so much about
accounts and businesses. When we use ratio analysis we can work out how profitable a business
is, we can tell if it has enough money to pay its bills and we can even tell whether its
shareholders should be happy!

Ratio analysis can also help us to check whether a business is doing better this year than it was
last year; and it can tell us if our business is doing better or worse than other businesses doing
and selling the same things.

In addition to ratio analysis being part of an accounting and business studies syllabus, it is a very
useful thing to know anyway!

The overall layout of this section is as follows: We will begin by asking the question, What do
we want ratio analysis to tell us? Then, what will we try to do with it? This is the most important
question, funnily enough! The answer to that question then means we need to make a list of all of
the ratios we might use: we will list them and give the formula for each of them.

Ratio Analysis

It‘s a tool which enables the banker or lender to arrive at the following factors :

Liquidity position

Profitability

Solvency

Financial Stability

Quality of the Management

Safety & Security of the loans & advances to be or already been provided

How a Ratio is expressed

 As Percentage - such as 25% or 50% . For example if net profit is Rs.25,000/- and the
sales is Rs.1,00,000/- then the net profit can be said to be 25% of the sales.
 As Proportion - The above figures may be expressed in terms of the relationship
between net profits to sales as 1: 4.

 As Pure Number /Times - The same can also be expressed in an alternatively way
such as the sale is 4 times of the net profit or profit is 1/4th of the sales.
 Ratio Analysis of state bank of India

Profitability Ratios:

Gross Profit Ratio = (Gross Profit/Net sales) × 100

2019 = (94803.91 / 106521.45) × 100

= 88.99

2020 = (63822.19 / 81394.36) × 100

= 78.41

Net Profit Ratio = (Net Profit/Sales) × 100

2019 = (8264.52/ 81394.36) × 100

= 10.15

2020 = (11707.29 / 106521.45) × 100

= 10.99

Operating Ratio = (Operating Expenses/Net Sales) x 100

2019 = (29713.36 / 81394.36) x 100

= 36.50

2020 = (27342.72 / 106521.45) x 100

= 25.66

Liquidity Ratios:
Current Ratio = (Current Assets/Current Liabilities)

2019 = (423238.9 / 1053501.77)

= 0.401%

2020 = (414827.33/ 1170652.93)

 = 0.354%

Quick Ratio = (Quick Assets ∕ Current

Liabilities) Quick Assets = Current Assets – Closing

Stock

Capital Structure Ratio:

Debit Equity Ratio = (Debt / Equity)

Equity = Equity share capital + Preference share capital +

Reserves 2019 = 635.00 + 0 + 64351.04

= 64986.04

2020 = 651.04 + 0 + 83280.16

= 83951.2

2019 = (1053501.77 / 64986.04)

= 1.62%

2020 = (1170652.93 / 83951.2)

=13.94%

Proprietary Ratio To = (Equity / Total Assets)

Total Assets
2019 = (64986.04 / 1223736.20)

= 0.05%

2020 = (83951.2 / 1335519.24)

= 0.06%

Proprietary Ratio To = (Fixed Assets / Equity)

Fixed Assets
 2019 = (800497.3 / 64986.04)

= 12.31%

2020 = (920691.41 / 83951.02)

= 10.96%

Current Assets To = (Current Assets / Equity)

Proprietary Ratio

2019 = (423238.9 / 64986.04)

= 6.51%

2020 = (414827.33 / 83951.2)

= 4.94%

Turnover Ratios:

Working Capital = Cost of Goods Sold / Working Capital

Turnover Ratio
Working Capital = Current Assets – Current Liabilities

2019 = 423238.9 – 1053501.77

= -630262.87

= 17572.17/ (-630262.87)

= -0.027%

2020 = 414827.33 – 1170652.93

= -755825.6

= 42717.54/ (-755825.6)
 = 0.056%

Fixed Assets Turnover Ratio = Net Sales / Fixed Assets

2019 = 81394.36 / 800497.33

= 0.10%

2020 = 106521.45 / 920691.41

= 0.11%
FINDINGS:

o The Gross Profit of the company has been decreased when compared with the
base year and normal year. Ratio value for the year 2012 is 78.41 and for the year
2011 is88.99
o The Net Profit ratio has been increased from 10.15 to 10.99 from 2011 and 2012.
o The value of Operating Profit ratio is decreased 36.50 to 25.66 in the 2011 to
2012.
o The Current ratio of the company has been decreased from 0.401% to .0.354% in
the year2011 to 2012.
o The Quick ratio of the company has been decreased from 0.517 to .506 in the
year2011 to 2012.
o The Debt Equity ratio has been increased from 1.62% to 1.94% in the year2011 to
2012.
o Proprietary ratio to Total Assets is 0.05% in 2011, where as in 2012 it is 0.06%
o Proprietary ratio to Fixed Assets is 12.31% 2011, where as in 2012 it is 10.96%.
o Proprietary ratio to Current Assets is decreased 6.51%in the year 2011 &4.94% in
the year of 2012.
o Networking Capital Turnover ratio has been increased -0.027% in the year 2011
& 0.056% year of 2012.
o Fixed Assets Turnover ratio has been increased 0.10% in the year 2011 & 0.11%
year of 2012.

Project findings reveal that SBI is sanctioning less Credit to agriculture, as compared with its key
competitor’s viz., Canara Bank, Corporation Bank, Syndicate Bank

Recovery of Credit: SBI recovery of Credit during the year 2006 is 62.4% Compared to other Banks
SBI ‘s recovery policy is very good, hence this reduces NPA

Total Advances: As compared total advances of SBI is increased year by year.

State Bank Of India is granting credit in all sectors in an Equated Monthly Installments so that any body
can borrow money easily
Project findings reveal that State Bank Of India is lending more credit or sanctioning more loans as
compared to other Banks.

State bank Of India is expanding its Credit in the following focus areas:
1 SBI Term Deposits

2 SBI Recurring Deposits

3 SBI Housing Loan

4 SBI Car Loan

5 SBI Educational Loan

6 SBI Personal Loan …etc

 In case of indirect agriculture advances, SBI is granting 3.1% of Net Banks Credit, which is less as
compared to Canara Bank, Syndicate Bank and Corporation Bank. SBI has to entertain indirect
sectors of agriculture so that it can have more number of borrowers for the Bank.

 SBI’s direct agriculture advances as compared to other banks is 10.5% of the Net Bank’s Credit,
which shows that Bank has not lent enough credit to direct agriculture sector.

 Credit risk management process of SBI used is very effective as compared with other banks.
Suggestions:
 If the Current Ratio is decreased as per that current assets is low. If it is increased the
current ratio is increased.
 Gross Profit is present is 94 if bank will decrease expenses then it will increase more.
 Net Profit is increased 10.99(2012) from 10.15(2011). If expenses are reduced then
net profit will be decreased.
 Operating Ratio is decreased in 2012(25.66). If we decrease operating expenses
then operating ratio will be increased.
 Debt Equity Ratio is increased in 2012. Bank will reduce debt then debt equity ratio is
decreased.
 Fixed Assets Turnover Ratio is increased in 2012. If you increase Fixed Assets then
Fixed Assets Turnover Ratio is decreased.

Conclusion:

State Bank of India is presently doing well. Increasing the services every year. But still,
if some operating Expenses will be reduced then it will become strong. And more over it
would be better if it provides more services to the public like, credit loans, home loans, less
interest rates and more online services will be provided to customers.