STUDY ON ORGANIZATION AND DIGITAL BANKING

AWARENESS PROGRAMME IN STATE BANK OF INDIA

Submitted in partial fulfillment of the requirements for the award of

MASTER OF BUSINESS ADMINISTRATION

BY

SHOBIGA V

Reg. No. 1718301158

BATCH OF 2018 – 2020

Department of Management Studies

SONA COLLEGE OF TECHNOLOGY
An Autonomous Institution, Affiliated to Anna University, Chennai
Salem – 636 005
 JULY 2019

DEPARTMENT OF MANAGEMENT STUDIES

SONA COLLEGE OF TECHNOLOGY

(An Autonomous Institution)

July 2018

This is to certify that the report entitled “ A STUDY ON ORGANIZATION AND

DIGITAL BANKING AWARENESS PROGRAMME IN STATE BANK OF
INDIA ” is the bona fide summer project work done by

SHOBIGA V
Reg. No:1718301158
Of MBA degree during the year 2018-2020

Faculty Guide Director

Submitted for the project Viva-Voce examination to be held on _____________

Internal Examiner External Examiner

DECLARATION

I affirm that the summer project work report titled “STUDY ON ORGANIZATION

AND DIGITAL BANKING AWARENESS PROGRAMME IN STATE BANK

OF INDIA ” being submitted in partial fulfillment for the award of Master of Business
Administration is the original work carried out by me. It has not formed the part of any project
work submitted for award of any degree or diploma, either in this or any other university.

(Signature of the student)

SHOBIGA V
Reg. No: 1718301158
 ACKNOWLEDGEMENT

First of all, we praise and thank the almighty from the depth of my heart to the God
and who has been with us as source of strength in the completion of this project
work.

At the outset, we would like to dedicate our sincere thanks to my honorable founder
and chairman Thiru.M.S. Chockalingam, for providing us infrastructural facilities
to work in.

I also express my sincer gratitude to my respected Director Dr. Swarup K

Mohanty, who gave us a chance to quench my knowledge thirst.

I express cavernous sagacity of gratitude to my Mentor, and Assistant Professor Ms.

Umaya Salma Shajahan , Department to Management studies for his support and
encouragement, which helped me for the completion of this project.

I express my thanks and respect to my project coordinator and Assistant Professor,

Ms. Umaya Salma Shajahan, Department of Management studies who guided me
for doing the project successfully.

I am thankful to get constant encouragement support and guidance from all the
Teaching and Non-Teaching Faculty Members of the Department of Management
studies and also I am thankful to my Family and Friends who have encourages and
supported me.
 1. ENTERPRISE HISTORY AND BACKGROUND

1.1 ESTABLISHMENT AND HISTORY OF THE ENTERPRISE:

Formerly : Imperial Bank of India

Type : public

Industry : Banking and financial services

Predecessor : Imperial Bank of India (1921-1955)

Bank of Calcutta (1806-1921)

Bank of Bombay (1840- 1921)
Bank of Madras (1843-1921)
State Bank of Travancore (1945-2017)

Founded : 2nd June 1806, Bank of Calcutta

15th April 1840, Bank of Bombay

1st July 1843, Bank of Madras

27th January 1921, Imperial Bank of India

1st July 1955, State Bank of India.

Headquarters : State Bank Bhawan, M.C. Road, Nariman Point, Mumbai,

Maharashtra, India.

Number of locations : 22,010

Key people : Rajnish Kumar (Chairman)

Products : Retail banking, corporate banking, investment banking

Mortgage loans, private banking, wealth management,

Credit cards, finance and insurance.

Revenue : Rs 279,644 crores in 2019

Operating Income : Rs 55,436 crore in 2019

Net Income : Rs 862 crores In 2019

Total assets : Rs 3,680,914 crores in 2019

Owner : Government of India (61.23%)

Number of employees : 257,252 in March 2019

Website : www.sbi.co.in

The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank of India,

making it the oldest commercial bank in the Indian subcontinent. The Bank of Madras merged into

the other two "presidency banks" in British India, the Bank of Calcutta and the Bank of Bombay, to

form the Imperial Bank of India, which in turn became the State Bank of India in 1955.

The Government of India took control of the Imperial Bank of India in 1955, with Reserve Bank of

India (India's central bank) taking a 60% stake, renaming it the State Bank of India.

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.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made eight banks that

had belonged to princely states into subsidiaries of SBI. This was at the time of the first Five Year Plan,

which prioritised the development of rural India. The government integrated these banks into the State Bank

of India system to expand its rural outreach. In 1963 SBI merged State Bank of Jaipur (est. 1943) and State

Bank of Bikaner (est.1944).

SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI acquired in

1969, together with its 28 branches. The next year SBI acquired National Bank of Lahore (est. 1942), which

had 24 branches. Five years later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been

established in 1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The bank had

been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new bank's first manager was

Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120 branches. SBI

was the acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in Kerala.

There has been a proposal to merge all the associate banks into SBI to create a single very large bank and

streamline operations.

The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra merged with

SBI, reducing the number of associate state banks from seven to six. On 19 June 2009, the SBI board

approved the absorption of State Bank of Indore. SBI holds 98.3% in State Bank of Indore. (Individuals who

held the shares prior to its takeover by the government hold the balance of 1.7%.)

The acquisition of State Bank of Indore added 470 branches to SBI's existing network of branches. Also,

following the acquisition, SBI's total assets will approach ₹10 trillion. The total assets of SBI and the State

Bank of Indore were ₹9,981,190 million as of March 2009. The process of merging of State Bank of Indore

was completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26

August 2010.
On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed Chairperson of the

bank.[11] Mrs. Bhattacharya received an extension of two years of service to merge into SBI the five

remaining associated banks.

1.2 VISION AND MISSION STATEMENT:

VISION STATEMENT:
 To be the most trusted and preferred finance service provider worldwide.
 Creating Value for All through Responsible, Reliable and Resourceful Partnership.
 My SBI.
 My customer first.
 First in customer Satisfaction.
MISSION STATEMENT:
 We will be prompt, polite and proactive with our customers.
 We will speak the language of young India.
 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 create products and services that help our customers to achieve their goals.
 We will imbibe the state of art technology to drive excellence.

VALUES:

To emerge as the leading company offering a comprehension range of banking and finance

products at competitive prices, ensuring high standards of customers Satisfaction and world class

operating efficiency thereby becoming a model banking sector in India on the post liberalization

period.

 We will always be honest, transparent and ethical.

 We will respect our customers and fellow associates.

 We will be knowledge driven.

 We will never take the easy way out.

 We will do everything we can to contribute to the work in.

 We will nurture pride in India.

1.3 GOVERNING BODY:

Under Section
S.
Name Designation of SBI Act
No
1955
1. Shri Rajnish Kumar Chairman 19(a)
2. Shri P.K. Gupta Managing Director 19 (b)
3. Shri Dinesh Kumar Khara Managing Director 19 (b)
4. Shri Arijit Basu Managing Director 19 (b)
5. Smt Anshula Kant Managing Director 19 (b)
6. Shri Sanjiv Malhotra Director 19 (c)
7. Shri Bhaskar Pramanik Director 19 (c)
8. Shri Basant Seth Director 19 (c)
9. Shri B. Venugopal Director 19 (c)
10. Dr.Purnima Gupta Director 19 (d)
11. Shri Ravi Mital Director 19 (e)
12. Shri Chandan Sinha Director 19 (f)

1.4 GROUP COMPANIES:

NON BANKING SUBSIDIARIES:

The Bank has the following Non-Banking Subsidiaries in India:

 SBI Capital Markets Ltd
 SBI Funds Management Pvt Ltd
 SBI Global Factors Ltd.
 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 SBI DFHI Ltd
 SBI General Insurance Company Limited
 SBI Pension Funds Pvt Ltd (SBIPFPL)
MERGERS:
 State Bank of Patiala

 State Bank of Bikaner and Jaipur

 State Bank of Raipur

 State Bank of Travancore

 State Bank of Hyderabad

 Bhartiya Mahila Bank (BMB) 

1.5 CSR INITIATIVES :

The concept of Corporate Social Responsibility (CSR) was introduced in the State Bank of
India as early as 1973, under the name Innovative Banking, covering both banking as well as
non-banking activities. The initial emphasis was on assisting groups belonging to the weaker
and downtrodden sections of society by providing avenues for improvement of their
economic condition. Non-banking activities involved participation in community activities
which contributed to the communal good, e.g. blood donation camps, health camps,
participation in local festivals, adult literacy, tree planting etc. As the scope of activities
increased, the Bank classified these activities as Community Service Banking. Community
Service Banking is now one of the activities through which the Bank plays the role of a
responsible and responsive corporate citizen and discharges its corporate social responsibility
to the community.

CORPORATE PHILOSOPHY:

The Bank is a corporate citizen, with resources at its command and benefits which it derives
from operating in society in general. It therefore owes a solemn duty to the less fortunate and
under-privileged members of the same society.

Staff members are encouraged to make their contribution by understanding the aspirations of the
public around them and by endeavouring to evolve measures to remove indisputable social and
developmental lacunae. This will lead to their self-development and improvement of the Bank’s
image besides development of the Community.

Under community service banking, various welfare and social activities are undertaken by the
Bank both in Banking and Non-Banking areas to raise the quality of life of the downtrodden and
under-privileged sections of societ
CSR PRACTICE

BANK’S DONATIONS:

In terms of Reserve Bank of India instructions, the Bank can sanction donations up to 1% of the
previous year’s profits. The Bank shall not carry forward the unutilised amount of the
permissible limit of any year for use in subsequent years. The Board of Directors of the Bank are
required to lay down the policy of making donations including the purpose for which donations
may be given.

Bank’s donations are classified under 2 broad categories:

a) National Donations
b) Normal Donations

CEILING

The annual ceiling for donations, i.e. 1% of the previous year‟s published profit is divided in
the following manner: „Normal Donations [0.75% of profit] and

„National Donations‟ [0.25% of profit]

The unutilized portion of either of the two categories of donations may, at the discretion of
the Chairman, be utilized for the remaining category of donations in case its quota for the
year has been exhausted.

NATIONAL DONATIONS

 Donations granted to funds sponsored / recognized by Central or State Governments, like

Prime Minister’s National Relief Fund, National Defence Fund, Chief Minister’s Relief
Fund etc. for relief / rehabilitation during natural calamities.
 25% of donation ceiling [0.25% of profit] is earmarked for National Donations.
 All National Donations are included while computing the 1% annual ceiling applicable
for overall donations in a year except for donations to prime minister National relief
Fund which has been excluded by the Reserve Bank of India
 All National donations are to be sanctioned at corporate Centre only
 2. ORGANIZATION
2.1 ORGANIZATIONAL STRUCTURE:

CHAIRMAN

DMD & CDO DMD & CFO

CHIEF ETHICS CHIEF

OFFICER VIGILANCE CGM AND CHIEF STRATEGY
OFFICER

MD (CORPORATE MD (RETAIL MD ( STRESSED MD (RISK, IT &

AND GLOBAL AND DIGITAL ASSTS SUBSIDIARIES )

DMD ( STRESSED
DMD DMD DMD
ASSETS
(CAG) (COO) (INTERNAL
RESOLUTION
AUDIT)
DMD (DB GROUP)
& NB)
DMD & CIO DMD & CRO
DMD DMD (RB)
(GLOBAL ALL DMD & CCO
SUBSIDIARIES
DMD (MCG) CGM &
DMD (BG) CGM
GCO
(CIRCLES)

CHIEF
CUSTOMER
SERVICE
CHIEF
MARKETING

13
2.2 GEOGRAPHICAL SPREAD:

SBI HEADQUARTERS:
State Bank Bhawan,
M.C. Road,
Nariman Point,
Mumbai,
Maharashtra, India.
SBI CORPORATE OFFICE IN INDIA:

Corporate Centre,
State Bank Bhavan,
Madame Cama Road,
Nariman Point,
Mumbai,
Maharashtra 400021

There are 22,010 branches are located in India.

SERVICE LOCATIONS WORLDWIDE:

1. Australia 17. Oman

2. Bangladesh 18. Saudi Arabia
3. Belgium 19. Singapore
4. Bhutan 20. South Africa
5. California 21. Sri Lanka
6. Canada 22. UAE
7. China 23. UK
8. Finance 24. USA
9. Germany
10. Hong kong
11. Indonesia
12. Japan
13. Maldives
14. Mauritius
15. Nepal

14
 16. Nigeria

3. MARKETS

3.1 BRANDS AND PRODUCTS:

YONO (You Only Need One) is an integrated digital banking platform offered by State Bank

of India (SBI) to enable users to access a variety of financial and other services such as taxi
bookings, online shopping, or medical bill payments YONO is offered as a smartphone
app for both Android and iOS.

YONO was launched on Friday 24 November 2017 by Arun Jaitley, the Finance Minister of
India.

YONO offers services from over 60 e-commerce companies including online shopping, travel
planning, taxi booking, online education and offline retail. YONO also offers
conventional mobile banking services such as bank account opening, fund transfers, cashless
bill payments, and loans. The smartphone app can be used to make ATM withdrawals.

Products & Services:

o Personal Banking
o NRI Services
o Agriculture
o International
o Corporate
o Domestic Treasury

15
State Bank of India Loans:
State Bank of India Loans disburses the following loan-products through its wide network of
branches in India and abroad. Loans to employees to buy shares of their companies.

o Home loans.
o SBI Saral Personal loans.
o Easy travel loans.
o Gram Nivas scheme.
o Car loan.
o Education loans.
o Property loans.
o Loan to pensioners.
o Loan against shares and debentures.
o Loan for earnest money deposits.
o Festival loans.
o Medi-plus scheme.
o Teachers-plus scheme.
o Tribal -plus scheme.
o Credit khazana.
o Rent plus.
o SBI career loans.

State Bank of India Credit Card is another wonderful product from the deep product-portfolio
of State Bank of India. State Bank of India Credit Card base as on 31st March 2007 is 25.36
million and till date is the largest credit card base in India. Moreover, it has 6473 ATMs - the
highest number in India till date.

Amongst host of awards and accolades won by State Bank of India, the most mentioned
worthy being, The "TECHNOLOGY AWARD 2005" by The Banker,London.

16
SBI Credit Cards Features:
State Bank of India Credit Card offers the following features in serving its wide customer
base : 

 The State Bank of India Credit Card offers a Classic VISA card duly acceptable in
India and Nepal. It transfers all the advantages provided by the VISA Card.
 The present eligibility for applying for the State Bank of India Credit Card is `
75,000 for salaried and ` 60,000 p.a. for businessmen (kindly verify the rate with SBI
before applying).
 SBI Credit Card is acceptable over 1,05,000 merchants in India and Nepal. The SBI
Credit Card is accepted to 117 cash-point locations in 57 cities from Leh to Port
Blair.
 The daily withdrawal limit is ` 10,000.
 SBI Credit Card comes with an insurance of ` 2 lakhs on road and ` 4 lakhs by air.

State Bank of India Credit Card has indeed revolutionized the Indian banking system credit
and payment modes.

3.2 MARKET SEGMENTATION:

Market Segmentation is defined as the process of splitting customers, or

potential customers, in a market into different groups, or segments, within which the
customers share a similar level of interest in the same or comparable sets of needs
satisfied by a distinct marketing proposition: it is also explained as a marketing
technique that targets a group of customers with specific characteristics, ie. A
particular group that has its own distinct customer profile and buyer characteristics so
that for marketing purposes, it can be targeted separately from other segments of the
market

It is a key ingredient for successful marketing as it simplifies the targeting, positioning and
the planning process.

A true Market Segment meets all of the following criteria: it is distinct from other
segments (heterogeneity across segments), it is homogenous within the segments
(exhibits common attributes), it responds similarly to a market stimulus and it can be

17
reached by a market intervention Market Segmentation simplifies the firm's product,
pricing, promotion and distribution strategies and also facilitates planning and
organizing function of management more easily and cost effectively; but it requires a
thorough understanding of the customer’s needs. It is referred as a tool for defining
markets and thereby allocating resources, it uses statistical techniques called factor
analysis and cluster analysis to combine attitudinal and demographic data to develop
segments that are easier to target.
Market Segmentation can be done on the basis of the location (Geographic Segmentation): on
the basis of age, income, gender and other measurable factors (Demographic Segmentation);
on the basis of lifestyle, likes, dislikes, taste and preferences (Psychological Segmentation);
and according to the history, loyalty and Behavioural segmentation

GEOGRAPHIC SEGMENTATION:
Rural, Urban, Metropolitan

DEMOGRAPHIC SEGMENTATION:
Occupation: Salaried, Self-employed, Students, Corporate, Government.

BEHAVIOURAL SEGMENTATION:
Usage: Frequency, Value added Services, Allied Services.

PSYCOGRAPHIC SEGMENTATION:
Trusted bank image, New generation Banking.

3.3 MARKET SHARE:

SBI is ranked as 216th in the Fortune Global 500 list of the world's biggest corporations of
2018. It is the largest bank in India with a 23% market share in assets, besides a share of one-
fourth of the total loan and deposits market.
As on 31 March 2017, Government of India held around 61.23% equity shares in SBI.
The Life Insurance Corporation of India, itself state-owned, is the largest non-promoter
shareholder in the company with 8.82% shareholding.

SHAREHOLDERS SHAREHOLDING
Promoters: Government of 54.23%

18
 India
FIIs/GRDs/OCBs/NRIs 18.17%
Bankers and insurance 10.00%
companies
Mutual funds and UTI 8.29%
Others 9.31%
Total 100%

3.4 ADVERTISING AND PROMOTIONS:

Product:

The product strategy and mix in State Bank of India (SBI) marketing strategy can be
explained as follows:

State Bank of India offers services in various sectors such as personal banking, rural banking,
corporate banking, International Banking. Rural & Agricultural Banking has many services
such as Kisan Credit Card, Farm Mechanization loan, Poultry Loan, Gold Loan, Fisheries
Loan, Dairy Loan, Micro credit, Pradhan Mantri JanDhan Yojana, Direct Benefit transport.
Personal Banking by SBI includes deposits such as Savings account, CC account, Salary
account, Fixed deposit, Recurring deposit. SBI Loans are available such as Gold loans, car
loans, education loan, personal loans, home loans, etc. SBI gives corporate services such as
Corporate account groups, mid-corporate account groups, Project finance, etc. International
banking of SBI consists of wholesale banking, retail, banking, Global trade service,
correspondent banking, treasury management. Other services offered are, Aadhaar seeding,
ATM services, mobile banking, Internet banking, Cash deposit machines, Demat services,
Invest Bonds, etc. This covers the product strategy in the marketing mix of State Bank of
India.

Price:

Below is the pricing strategy in State Bank of India (SBI) marketing strategy:

State Bank of India has a pricing strategy based on competition, RBI guidelines and customer
demand. The marketing mix pricing strategy governs the operations of SBI bank as follows.
Services provided by SBI follow the guidelines provided by Reserve Bank of India. SBI
competitively prices its services because Banking sector has become highly competitive.
Government policies heavily affect prices of the services provided by the bank. Since loan is
highly risky pricing also depends on the total to which the assets and liabilities amount to. 

19
Place:

Following is the distribution strategy of State Bank of India (SBI):

SBI operates in over 18 thousand branches in India. Majority of its banks are in rural areas
since it is a public sector bank and aims to serve the whole of India. SBI is present in 36
countries with over 190 branches overseas. SBI also provides its services through mobile
banking and Internet banking. It also has cash deposit stations and a huge network of ATMs.

Promotion:

The promotional and advertising strategy in the State Bank of India (SBI) marketing strategy
is as follows:

State Bank of India (SBI) promotes itself through various media such as Print media and
audio visual media such as Radios, Hoardings, Newspaper advertisements, TV-commercials,
movies, etc. Its tagline, ‘The Banker to every Indian’ turns out to be perfectly apt given its
presence across India. SBI smartly conveys its policies through its advertisements. Recently,
it has been adapting to the modern approach and devising its advertisements accordingly.
Thereby, it has employed famous personality to reinforce the idea of trust and SBI in
customers’ minds. Being affordable and present at almost every town, village and city has
been its indirect promotion due to its increased presence.

Process:

All the activities of SBI are governed by the RBI. It has to follow its regulations and
principles. SBI follows standard formats like any other bank because it has to abide by the
rules of RBI. Even though the documentation and forms are standardised, the bank has
customized approach for every customer based on the customer needs. Customer involvement
is ensured through ATMs where the employees are not present and only customers are
involved in the process. For simplicity, the functions of the bank are carefully segregated
based on their inter-connections.

People:

Every Indian is one or other way connected to the State Bank of India. The primary reason
being, every bank is directly related to SBI. Hence, customers, employees, management,
workers, everyone contributes to the prosperity and growth of the bank. Every worker and
employee adds to the profitability of SBI bank.

20
Physical Evidence:

SBI has its physical evidence through websites. The Business cards, paperwork, brochures,
furnishings are a source of physical evidence. Banks provide tangibles such as diaries, pens to
employees. The passbooks, check books also are a medium of physical evidence.
Furnishings, financial reports, signage also reduce intangibility of the services. This covers
the marketing mix for State Bank of India (SBI).

TAG LINE OF SBI:

 “PURE BANKING, NOTHING ELSE"

 “WITH YOU-ALL THE WAY"

 “A BANK OF THE COMMON MAN"

 “THE BANKER TO EVERY INDIAN"

 “THE NATION BANKS ON US"

LOGO:

The logo of the state bank of India is a blue circle with a small cut in the bottom that depicts
perfection and the small man the common man being the centre of the bank's business.The
logo came from National Institute of Design (NID), Ahmedabad and it was inspired by
Kankaria lake.

21
 4. FINANCIALS

4.1 REVENUE AND PROFIT:

Profit & Loss - State Bank of India Rs (in Crores)

  Mar'19 Mar'18 Mar'17 Mar'16 Mar'15

  12Months 12Months 12Months 12Months 12Months
INCOME:
Sales Turnover 242868.65 220499.32 175518.24 163998.30 152397.07
Excise Duty .00 .00 .00 .00 .00
NET SALES 242868.65 220499.32 175518.24 163998.30 152397.07
Other Income 36774.887 44600.687 35460.927 27845.368 22575.892
8 1 5 7 6
TOTAL 279643.54 265100.00 210979.17 191843.67 174972.97
INCOME
EXPENDITURE:
Manufacturing .00 .00 .00 .00 .00
Expenses
Material .00 .00 .00 .00 .00
Consumed
Personal 41054.71 33178.68 26489.28 25113.82 23537.07
Expenses
Selling Expenses 354.06 358.33 281.14 307.64 284.64
Administrative 25066.67 23486.98 17409.04 14660.60 13115.67
Expenses

22
 Expenses .00 .00 .00 .00 .00
Capitalised
Provisions Made 53828.55 75039.20 35992.72 29483.75 20223.31
TOTAL 120303.98 132063.18 80172.18 69565.82 57160.69
EXPENDITUR
E
Operating Profit 21873.44 17829.74 17680.28 17112.74 18077.87
EBITDA 213168.11 208076.02 166799.71 151761.60 138035.59
Depreciation 3212.31 2919.47 2293.31 1700.30 1116.49
Other Write-offs .00 .00 .00 .00 .00
EBIT 209955.80 205156.56 164506.40 150061.30 136919.10
Interest 154519.78 145645.60 113658.50 106803.49 97381.82
EBT 1607.48 -15528.24 14855.17 13774.05 19313.96
Taxes 745.25 -8980.79 4371.07 3823.40 6212.39
Profit and Loss 862.23 -6547.45 10484.10 9950.65 13101.57
for the Year
Non Recurring .00 .00 .00 .00 .00
Items
Other Non Cash .00 .00 .00 .00 .00
Adjustments
Other .00 .00 .00 .00 .00
Adjustments
REPORTED 862.23 -6547.45 10484.10 9950.65 13101.57
PAT

4.2 MARKET CAPITALIZATION, AUDITORS:

Key Market stats

Market Capitalization (in Rs. crores) 322580

Price/earnings (Latest years earnings) 361.40

EPS 1.00

52 week High/Low 365.00 / 247.40

23
No of shares outstanding (In Lacs) 89246

Current Market Price Rs. 362.20

Previous Close Rs. 360.90

Volume 0

Today's Low Rs. 0.00

Today's High Rs. 0.00

BOMBAY STOCK EXCHAMGE (BSE):

NATIONAL STOCK EXCHANGE (NSE):

Current Market Price Rs. 361.45 Market

Previous close Rs. 361.25 Value

of SBI
Volume 667377
is
Today's Low Rs. 361.00 291.85
INR
Today's High Rs. 363.00

P/E RATIO OF SBI:

Ratios

 Particulars Mar ' Mar ' Mar ' Mar ' Mar '
19 18 17 16 15
Per share ratios
Adjusted EPS (Rs) 0.96 -7.34 13.15 12.82 17.55
Adjusted cash EPS (Rs) 4.57 -4.07 16.02 15.01 19.04
Reported EPS (Rs) 0.96 -7.34 13.15 12.82 17.55
Reported cash EPS (Rs) 4.57 -4.07 16.02 15.01 19.04
Dividend per share - - 2.60 2.60 3.50
Operating profit per share (Rs) 24.51 19.98 22.17 22.04 24.21
Book value (excl rev res) per share 219.91 217.69 196.53 185.85 172.04
(Rs)
Book value (incl rev res) per share 247.53 245.53 236.14 185.85 172.04

24
(Rs.)
Net operating income per share (Rs) 272.13 247.07 220.13 211.26 204.13
Free reserves per share (Rs) - - - - -
Profitability ratios
Operating margin (%) 9.00 8.08 10.07 10.43 11.86
Gross profit margin (%) 7.68 6.76 8.76 9.39 11.12
Net profit margin (%) 0.35 -2.96 5.97 6.06 8.59
Adjusted cash margin (%) 1.45 -1.36 6.05 6.07 8.12
Adjusted return on net worth (%) 0.43 -3.37 6.69 6.89 10.20
Reported return on net worth (%) 0.43 -3.37 6.69 6.89 10.20
Return on long term funds (%) 79.55 66.97 82.01 83.57 90.85
Leverage ratios
Long term debt / Equity - - - - -
Total debt/equity 16.89 15.79 15.08 14.24 13.87
Owners fund as % of total source 6.31 6.69 7.11 7.69 7.53
Fixed assets turnover ratio 0.07 0.07 0.07 0.07 0.08
Liquidity ratios
Current ratio 1.83 1.36 0.99 0.88 0.74
Current ratio (inc. st loans) 0.08 0.07 0.07 0.07 0.05
Quick ratio 18.06 13.83 11.94 10.89 11.02
Inventory turnover ratio - - - - -
Payout ratios
Dividend payout ratio (net profit) - - 20.11 20.28 20.21
Dividend payout ratio (cash profit) - - 16.50 17.32 18.62
Earning retention ratio 100.00 100.00 79.89 79.72 79.79
Cash earnings retention ratio 100.00 - 83.50 82.68 81.38
Coverage ratios
Adjusted cash flow time total debt 714.53 - 160.03 148.55 110.90
Financial charges coverage ratio 1.38 1.43 1.47 1.42 1.42
Fin. charges cov.ratio (post tax) 1.03 0.97 1.11 1.11 1.15
Component ratios
Material cost component (% earnings) - - - - -
Selling cost Component 0.14 0.16 0.16 0.18 0.18
Exports as percent of total sales - - - - -

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Import comp. in raw mat. consumed - - - - -
Long term assets / total Assets 0.79 0.82 0.84 0.80 0.82
Bonus component in equity capital - - - - -
(%)

SHAREHOLDING PATTERN OF SBI:

CATEGORY NO. OF  TOTA TOTAL NO. OF TOTAL SHARES
OF  SHARE- L NO. SHARES HELD SHAREHOLDI PLEDGED
SHAREHOL HOLDE OF IN NG AS A % OR 
DER RS SHAR DEMATERIALI OF TOTAL OTHERWIS
ES ZED NO. OF E
FORM SHARES ENCUMBER
AS A % OF ED
(A+B) NUMBER
AS A % OF OF 
(A+B+C) SHARES
AS A % OF
TOTAL 
NO. OF
SHARES
(A) Shareholding of Promoter and Promoter Group
(1) Indian  
Individuals / - - - - - -
Hindu
Undivided
Family
Central 1 5,098,882,979 5,098,882,979 57.88 57.88 - -
Government /
State
Government(s)
Bodies - - - - - -
Corporate
Financial - - - - - -
Institutions /
Banks
Any Others - - - - - -

26
(Specify)
Sub Total 1 5,098,882,979 5,098,882,979 57.88 57.88 - -
(2) Foreign  
Individuals - - - - - -
(Non-
Residents
Individuals /
Foreign
Individuals)
Bodies - - - - - -
Corporate
Institutions - - - - - -
Qualified - - - - - -
Foreign
Investor
Any Others - - - - - -
(Specify)
Sub Total - - - - - -
Total 1 5,098,882,979 5,098,882,979 57.88 57.88 - -
shareholding
of Promoter
and Promoter
Group (A)
(B) Public Shareholding
(1)  
Institutions
Mutual 73 1,189,610,367 1,189,355,067 13.50 13.50 - -
Funds / UTI
Financial 64 5,790,648 5,659,246 0.07 0.07 - -
Institutions /
Banks
Central 8 4,462,517 3,242,937 0.05 0.05 - -
Government /
State
Government(s)
Venture - - - - - -
Capital Funds
Insurance 10 886,811,002 886,799,502 10.07 10.07 - -

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Companies
Foreign - - - - - -
Institutional
Investors
Foreign - - - - - -
Venture
Capital
Investors
Qualified 769 955,936,362 954,960,942 10.85 10.85 - -
Foreign
Investor
Nominated - - - - - -
investors (as
def. in Ch. XA
of SEBI
(ICDR)
Regulations)
Market - - - - - -
Makers
Any Others 22 11,278,939 11,278,939 0.13 0.13 - -
(Specify)
Sub Total 946 3,053,889,835 3,051,296,633 34.67 34.67 - -
(2) Non-  
Institutions
Bodies - - - - - -
Corporate
Individuals - - - - - -
Individual 0 - - - - - -
shareholders
holding
nominal share
capital up to
Rs. 1 lakh
Individual 1,360,243 438,398,718 361,552,781 4.98 4.98 - -
shareholders
holding
nominal share

28
capital in
excess of Rs. 1
lakh
Qualified - - - - - -
Foreign
Investor
Any Others 28,235 217,516,042 214,302,014 2.47 2.47 - -
(Specify)
Sub Total 1,388,478 655,914,760 575,854,795 7.45 7.45 - -
Total Public 1,389,424 3,709,804,595 3,627,151,428 42.12 42.12 - -
shareholding
(B)
Total (A)+(B) 1,389,425 8,808,687,574 8,726,034,407 100.00 100.00 - -
(C) Shares - - - - - - -
held by
Custodians
and against
which
Depository
Receipts have
been issued-m
(1) - - - - - -
(2) - - - - - -
Sub Total 1 - 115,923,960 - - - -
Total (A)+(B) 1,389,426 8,808,687,574 8,841,958,367 100.00 100.00 - -
+(C)

5. OPERATIONS

5.1 FACILITY PLANNING AND LAYOUT:

NOMINATION FACILITY:

 Nomination facility is available for all deposit accounts, articles in safe custody and

safe deposit vaults.

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  Nomination is available for accounts opened in individual capacity (i.e. single / joint

accounts as well as accounts of a sole proprietary concern) only, i.e. not for accounts

opened in representative capacity.

 Nomination can be done in favour of one person only. However, nomination in

favour of more than one person (i.e. up to 2 persons) is permissible in jointly operated

locker accounts with common consent.

 Nomination can be made, cancelled or varied by the account holder anytime during

his/her life time. While making nomination, cancellation or variation, witness is

required and the request should be signed by all account holders.

 Nomination can be made in favour of a minor also. During the period the minor does

not attain majority, the natural guardian will receive the amount on the minors behalf.

OTHER FACILITY PLAN:

 Various other deposit schemes to meet the requirements of individual depositors, like

Multi Option Deposit Scheme etc. are also available with the branches of the Bank.

Detailed information on these schemes is available from our branches.

 Deposit Schemes for Senior Citizens: The fixed deposits of senior citizens (60 years

and over)attract additional interest of 0.50% for maturity period of one year and above

up to 5 years and 0.25% for maturity period of 5 years. These are subject to change.

 Articles in safe custody: Articles such as shares, securities etc. can be kept in safe

custody of the Bank. The terms and conditions and charges for safe custody are

available on request at branches and our helplines.

30
  Exchange of soiled/mutilated currency notes: All the branches of the Bank will

exchange freely soiled/slightly mutilated currency notes and certain other types of

mutilated currency notes of all denominations. The Bank's currency chest branches

will exchange all categories of mutilated currency notes. Currency exchange facility is

offered to the Bank's customers and others. The Bank follows RBI guidelines in this

respect. RBI has permitted the banks to exchange mutilated currency notes which are

genuine and where mutilations are such as not to cause suspicion or fraud.

 Safe Deposit Lockers: This ancillary service available at select branches is by hiring

a locker of various sizes by an individual, firms, limited companies etc. for a

minimum period of one year for which rent is payable in advance. Nomination facility

is available to the hirer. Terms and conditions and annual hire charges can be obtained

from the branches. The hire charges are also available on clicking the link Service

Charges and fees on the home page of the Banks website.

LAYOUT:

BACK DOOR

TEA ROOM LOCKER

NEW SPECI
A/C CASHIER CABIN
AL
CREDI ASST
T OPENI
CARD CHAIS TO SIT
31
SEC
CHAIRS TO SIT ASST GOLD
LOANS
AND SPL
COUNTER 2
ASST

CHAI CHAI CHAI COUNTER 1

RS RS RS
TO TO TO
SIT SIT SIT

BRANCH
MANAGER
CAR CABIN
FORM LOAN
FILLING SEC
DESK ENTRANCE

SBI ATM PARKING

5.2 MATERIAL MANAGEMENT:

AUTOMATION:
India is undergoing a digital transformation and witnessing an accelerated pace of innovation
and technology adoption. As the digital economy is flourishing, the Bank is also progressing
with its technological advancements and growing its presence in multi-channel platforms,
keeping itself ahead of the curve. Consequent to our digital initiatives, we have improved the
share of digital transactions as a percentage of total transactions by over 600 bps during the
year.

During FY2018, we launched an integrated omni-channel digital platform YONO as an

integral part of our digital drive. This is India’s first fully digital service platform designed to

32
facilitate banking as well as lifestyle needs of our customers through an all encompassing
B2C marketplace. Apart from banking services, the application is designed to offer other
financial products including investments, insurance and credit cards. This path-breaking
product has been developed using the latest digital technologies.

We are also committed towards transforming ourselves into a digitalised organisation,

supported by technology enabled backend operations. Along with the digitalisation of
consumer facing operations, we continue to invest in the automation of our internal processes
to improve efficiency, reduce cost of operations and re-deploy employees in revenue
accretive roles.

With an all-pervasive digital transformation taking hold, we are highly motivated to integrate
and absorb multiple technologies into our operational culture. The potential and the
productivity of new age technologies like block chain, machine learning, artificial
intelligence and IoT with data and analytics as their foundation have been recognised by the
Bank. Centres of excellence, proofs of concept and a collaborative and definitive time bound
plan with fintech companies and vendors has been put in place to harness and harvest the
benefits of these technologies for greater customer engagement, enhancing productivity of the
Bank and empowering our employees. We are continuously training our employees to keep
them updated on the technology front, and this enables them to deliver new-age banking for
an aspiring and transforming India.

5.3 TOTAL QUALITY MANAGEMEENT (TQM):

1. A highly committed and involved management providing continual organizational support.

2. Focus on customer needs.
3. Total involvement and utilization of the present workforce
4. Continuous improvement of the existing business processes and production processes
5. Considering Suppliers as partners
6. Establishing performance measures for the processes.

TQM MODEL:

33
The TQM model which could be followed in banks can be broadly divided into four phases
which are as follows.
• Requirements: These form the building block of the initial implementation of TQM. This
phase includes mainly approval of philosophy, commitment towards the philosophy and
documentation. The philosophy could be providing superior customer service for retaining
the existing customer and to attract potential customers like reducing the turnaround time for
a simple account opening.
• Action: Actions include the activities which are needed for the implementation of the
philosophy. The activities which are required in order to implement the philosophy are the
following.
o Training of the employee in aspect of TQM and explaining the meaning of the philosophy.
o Participation and involvement of the top management.
o Structural organizational change needed for implementation of the philosophy. The
organizational changes are in terms of responsibilities, department and management levels.
• Results: Performance of the implementation of TQM can be measured from two
perspectives which are customer satisfaction and financial development. Financial
development can be measured in terms of profitability and productivity.
• Measurement and Benchmarking: After assessing the performance, the result is compared
with the industry standards. If the performance is below the industry standards, the entire
process would be reworked and implemented to achieve the industry standard. This step helps
in continuous improvement of the process.

RBI initiative for TQM implementation:

RBI is taking initiatives for implementing TQM practices in banking sector for improving
and upgrading the professional skills of the employees. RBI also suggests different public
sector banks and commercial banks to adopt TQM practices and implement the same for their
employees. The initial approach taken by RBI for implementation of TQM is the introduction
of TQM training programmes which includes all the basics of TQM i.e. introduction to TQM,
customer focus, employee involvement. The bank employees were also provided training on
ISO 9000 system and cost of quality. According to RBI, such TQM oriented trainings would
help their employees to upgrade their skills, understand the importance of quality of product

34
and service as well as equip them with the necessary professional skills to face challenges
from competition.

5.4 SUPPLY CHAIN:

 Provides convenient paperless banking.

 Ensures Real time online transfer of funds and MIS.
 Is fully customizable as per your business requirement.
 Is capable of being fully integrated with Corporate Enterprise Resource Planning
Software (ERP)/SAP.

We offer two products on the supply chain to cater to the needs of both vendors and
dealers:

 Electronic Vendor Financing Scheme (e-VFS): Financing Vendors/Suppliers for

their receivables from Corporate buyers which are Industry Majors (IMs). The
Corporate buyers can upload the details of invoices raised by their Vendors on our
Bank's online platform which results in instant credit to Vendor account.
 Electronic Dealer Financing Scheme (e-DFS): Financing Dealers for their
purchases from Corporate Sellers. Corporate Sellers make online requests to our
Bank's online platform for debiting dealer's account by providing details of invoices
raised on their Dealers which results in immediate credit to Corporate seller's account.

CHANNEL MANAGEMENT:

The 5 components of a Channel Management Strategy

 
The components are:
 
 True alignment to corporate and sales strategy
 Defined partner selection process
 Adherence to a channel governance process

35
  Partner focused recruitment package
 Comprehensive channel enablement content

6. GOVERNANCE

6.1 GOVERNING PHILOSOPHY:

THE BANK’S PHILOSOPHY ON CODE OF GOVERNANCE:

State Bank of India is committed to the best practices in the area of Corporate Governance, in
letter and in spirit. The Bank believes that good Corporate Governance is much more than
complying with legal and regulatory requirements. Good governance facilitates effective
management and control of business, enables the Bank to maintain a high level of business
ethics and to optimise the value for all its stakeholders. The objectives can be summarised as:
 To protect and enhance shareholder value.
 To protect the interest of all other stakeholders such as customers, employees and
society at large.
 To ensure transparency and integrity in communication and to make available full,
accurate and clear information to all concerned.
 To ensure accountability for performance and customer service and to achieve
excellence at all levels.
 To provide corporate leadership of highest standard for others to emulate.

6.2 AWARDS:

SBI wins Asian Banker’s “Best Transaction Bank & Best

Payment Bank in India” Award for 2019
SBI has been rated as the “Best Transaction Bank in India” & “Best Payment Bank
in India” by The Asian Banker under their Business Achievement Awards 2019.

36
Our Bank has won the Best Transaction Bank Award for 3rd consecutive year viz-
2017, 2018 and 2019. Sri K.P.S. Rawat, CGM (TBU), with other TBU officials,
received the award on behalf of the Bank at The Asian Banker Business
Achievement Awards in Bangkok on 30th May 2019.
1. Best Transaction Bank in India by “The Asian Banker” for the second time in a row.
2. ”The Best Trade Finance Bank (India)-2019” for the eighth consecutive year by
Global Finance Magazine.
3. “Green Bond Pioneer Award” for being the largest new emerging markets Certified
Climate Bond issuer of 2018 by Climate Bond Initiative.
4. ‘Best MSME Bank Award-Large bank’ by CIMSME.
5. YONO, SBI's digital initiative, won the “Mobile Banking Initiative of the Year -
India” at the Asian Banking and Finance Retail Banking Awards, Singapore and ET
BFSI Innovation Awards.
6. At the Asian Banker Financial Technology Innovation Awards 2018 SBI received
awards in a number of categories including The Risk Data and Analytics Technology
Implementation of the Year for OFSAA

6.3 SWOT ANALYSIS:

Strengths in the SWOT analysis of SBI

 SBI is the largest bank in India in terms of market share, revenue and assets.
 As per recent data the bank has more than 22,010 outlets and 25,000 ATM centres.
 The bank has its presence in 32 countries engaging currency trade all over the world.
37
  The bank has a merged with State Bank of Saurashtra, State bank of Indore.
SBI has the first mover advantage in commercial banking service
SBI has recently changed its vision and mission statements showing a sign of
inclination towards new age banking services

Weaknesses in the SWOT analysis of SBI

 Lack of proper technology driven services when compared to private banks

Employees show reluctance to solve issues quickly due to higher job security and
customers’ waiting period is long when compared to private banks.
 The banks spends a huge amount on its rented buildings.
 SBI has the largest number of employees in banking sector, hence the bank spends a
considerable amount of its income in employee’s salary compensation in spite of
modernization, the bank still carries the perception of traditional bank to new age
customers.
 SBI fails to attract salary accounts of corporate and many government sector
employees salary accounts are also shifted to private bank for ease
of operations unlike before

Opportunities in the SWOT analysis of SBI

 SBI’s merger with five more banks namely State Bank of Hyderebad, State bank of
Patiala, State bank of Bikaber and Jaipur, State of bank of  Travancore and State bank
of Mysore are in approval stage.
 Mergers will result in expansion of market share to defend its number one position
SBI is planning to expand and invest in internationaloperations due to good inflow of
money from Asian Market.
 Since the bank is yet to modernize few of its banking operations, there is a better
scope of using advanced technologies and software to improve customer relations
Young and talented pool of graduates and B schools are in rise to open new horizon to
so called “old government bank”

38
Threats in the SWOT analysis of SBI

 Net profit of the year has decline from 9166.05 in the year FY 2010 to 7,370.35 in the
year FY2011.This shows the reduce in market share to its close competitor ICICI
Other private banks like HDFC, AXIS bank etc.
 FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as
people tend to switch to foreign banks for better facilities and technologies in banking
service.
 Other government banks like PNB, Andhra, Allahabad bank and Indian bank are
showing Customer prefer to switch to private banks and financial service providers
for loans and mortgages, as SBI involves stringent verification procedures and take
long time for processing..

7.CHECKLISTS

 Organization’s Name : STATE BANK OF INDIA

 Name of the Chairman : Shri Rajnish Kumar
 Date of Establishment : 1st July 1955
 Type of organization : Public
 Operation Management: Banking
 Other competitors in same industry: ICICI Bank, Andhra Bank, Allahabad Bank,
HDFC Bank, Axis Bank, Bank of Baroda.
 Level of Computerization : High
 Annual Turnover: INR 2.005 trillion (US$29 Billion)
 Share value : INR 291.85
 Average age of employees : 50 years (Approximate)
 Average years of Experience: 30 years (Approximate)

39
  Recruitment method : Standard recruitment Method Institute of Banking Personnel
Selection(IBPS exams).
 Total Number of employees: 2,57,252

8.CONCLUSION

These four weeks have been the most useful period in my Programme.I got the opportunity to
practically learn and experience many concepts of MANAGEMENT STUDIES that I have
only learnt theoretically. I was able to see how an organization functions.

I would like to thank all the employees and people who have been a lot of help to me during
this period and also my faculties who provided me the moral support to finish this project
successfully.

40
 9. REFERENCES

 https://www.marketing91.com/swot-analysis-sbi/

 https://indianotes.com/en/company-research/sbi/

 https://en.m.wikipedia.org/wiki/State_Bank_of_India

 https://economictimes.indiatimes.com/topic/SBI-market-share

 https://www.onlinesbi.com/

 https://www.sbi.co.in/portal/web/services/internet-banking

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