A PROJECT ON

“CASH MANAGEMENT IN SBI EFFECT ON CUSTOMERS”

SUBMITTED TO

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF DEGREE

OF BACHELOR OF COMMERCE
(MANAGEMENT AND STUDIES)
SEMESTER VI
2022-2023

SUBMITTED BY:
MR. SAURAB GOUD
ROLL.NO: 03

UNDER THE GUIDANCE OF

MRS. HUMERA SHAIKH

DAAR-UL REHMAT TRUSTS

A.E. KALSEKAR DEGREE COLLEGE
ARTS, COMMERCE AND SCIENCE
(AFFILICATED TO UNIVERSITY OF MUMBAI)
KAUSA-MUMBRA DIST: THANE
1
 ACCREDITED WITH B++ GRADE BY NAAC

DAAR-UL-REHMAT TRUST’s
A.E. KALSEKAR DEGREE COLLEGE
KAUSA, MUMBRA
Permanently Affiliated to the University of Mumbai Accredited by
NAAC with B++ Grade
ISO certified 9001:2015

CERTIFICATE OF PROJECT WORK

This is to certify that Mr. /Ms. of TYBAF
Semester Seat No has undertaken &
completed the project work titled
during the academic year under the guidance of Mr./Ms.
submitted on
to this college in fulfillment of the curriculum of

BACHELOR OF COMMERCE (ACCOUNTANCY AND FINANCE)

UNIVERSITY OF MUMBAI.
This is Bonafide project work & the information presented is true & original to the best of our knowledge and
belief.

Project Guide Head of Department Principal

External Examiner

2
 DECLARATION

I the undersigned Mr. SAURAB CHHABINATH GOUD here by, declare that the work embodied
in this project work titled “CASH MANAGEMENT IN SBI EFFECT ON CUSTOMER”, forms
my own contribution to the research work carried out under the guidance of MRS. HUMERA
IRFAN SHAIKH is a result of my own research work and has not been previously submitted to any
other University for any other Degree to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly indicated as such
and included in the bibliography.
I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

SAURAB CHHABINATH GOUD

Name and Signature of the learner

MRS. HUMERA IRFAN SHAIKH

Certified by
Name and signature of the Guiding Teacher

3
 ACKNOWLEDGMENT

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project. I take this opportunity to thank the University of Mumbai
for giving me chance to do this project. I would like to thank my Principal, DR. SAJID
HUNDEKAR for providing the necessary facilities required for completion of this project.
I take this opportunity to thank our Coordinator DR. ZAHID HUSAIN ANSARI, for his moral
support and guidance. I would also like to express my sincere gratitude towards my project guide
MRS. HUMERA IRFAN SHAIKH whose guidance and care made the project successful.
I would like to thank My College Library, for having provided various reference books and
magazines related to my project. Lastly, I would like to thank each and every person who directly
or indirectly helped me in the completion of the project especially My Parents and Peers who
supported me throughout my project.

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 INDEX

Chapter. No Title of the Chapter Page. No

1 Introduction to the Project Topic

1.1 Introduction 7
1.2 Definition of Cash Management 8
1.3 Meaning of Cash Management 9
1.4 Characteristic 12
1.5 Functions of Cash Management 13
1.6 Types of Cash Management 16
1.7 Advantages of Cash Management 17
1.8 Limitations of Cash Management 18
1.9 Cash Flow Management techniques 19
1.10 History of SBI 21

2 Information of SBI

2.1 Information about SBI 38

3 Research and Methodology

3.1 Objective of the Project 42

3.2 Research Design 43
3.3 Scope 44
3.4 Limitations of the Study 45

4 Literature Review

4.1 Literature Review 46

4.2 Gap Analysis 47

5 Data Analysis and Interpretation

5.1 Data Analysis 48

5.2 Data Interpretation 48
5.3 Primary Data Analysis and Interpretation Questionnaires 49
Method

6 Suggestions
69

7 Conclusion
5
 7.1 Conclusion 70
7.2 Bibliography 71

8 Annexure

8.1 Annexure 72
8.2 Google Form 72

6
 CHAPTER.NO 1 INTRODUCTION

1.1 INTRODUCTION

Cash is the most important current asset for the operation of business. Cash is the basis to
keep the business going on continuously. It is the most liquid asset. Business should keep
adequate cash which should neither be in excess of the requirements nor should it be
inadequate. The shortage of cash can put obstacles in the production process of business and
excessive cash will remain useless which will affect the profitability adversely. In any
business firm cash does not earn any profits
itself. Cash is the least productive asset of business. It is important because it is used to pay
business liabilities. Therefore, the main objective of cash management is to maintain
liquidity at optimum level and to invest surplus cash in profitable manner.

The term ‘cash’ is used in two ways. In the narrow sense, it includes coins, currency notes,
Cheques, Bank drafts, demand deposits, etc. In the wider sense the near cash assets like
marketable securities and time deposits are also included in it because they can be converted
quickly into cash. In cash management both cash and near cash assets are included.
Cash management is concerned with the management of collection and disbursement of
cash, determination of optimum amount of cash and investment of surplus cash.
7
 1.2 DEFINITION

 Cash management is the discipline of managing inflows and outflows of cash. It is a vital
process for ensuring the viability of any business. Business typically partner with banks
and give them custody of their cash assets. Beyond simply holding cash for businesses,
banks can help businesses receive cash from their accounts receivable and pay cash to
both their accounts payable and other liabilities such as payroll.

 Cash Management refers to the collection, handling, control and investment of the
organizational cash and cash equivalents, to ensure optimum utilization of the firm’s liquid
resources. Money is the lifeline of the business, and therefore it is essential to maintain a
sound cash flow position in the organization.

8
1.3 CASH MANAGEMENT MEANING

Cash management refers to a broad area of finance involving the collection,

handling, and usage of cash. It involves assessing market liquidity, cash flow,
and investments.
In banking, cash management, or treasury management, is a marketing term for
certain services related to cash flow offered primarily to larger business customers. It
may be used to describe all bank accounts (such as checking accounts) provided to
businesses of a certain size, but it is more often used to describe specific services such

9
as cash concentration, zero balance accounting, and clearing house facilities.
Sometimes, private banking customers are given cash management services.
Financial instruments involved in cash management include money market funds,
treasury bills, and certificates of deposit.

The term cash management refers to the process of collecting and managing cash flows. Cash
management can be important for both individuals and companies. It is a key component of a
company's financial stability in business. Cash is also essential for people's financial stability
while also usually considered as part of a total
wealth portfolio. Individuals and businesses have different options to help them with their
cash management needs, including banks to hold their cash assets. Cash management
solutions are also available for anyone who wants the best return on cash assets or the most
efficient use of cash comprehensively.

 KEY POINT

 Cash management is the process of managing cash inflows and outflows.

 There are many cash management considerations and solutions available in the
financial marketplace for both individuals and businesses.
 Individuals can use options like banks and financial institutions for their cash
management needs.
 For businesses, the cash flow statement is a central component of cash flow
management.
 The cash flow statement is a central component of corporate cash flow
management.

Cash management, also known as treasury management, is the process that involves
collecting and managing cash flows from the operating, investing, and financing activities of
a company. In business, it is a key aspect of an organization’s financial stability.
Cash management is important for both companies and individuals, as it is a key component
of financial stability.
Financial instruments involved in cash management contain money market funds, Treasury
bills, and certificates of deposit

10
Companies and individuals offer a wide range of services available across the financial
marketplace to help with all types of cash management. Banks are typically a primary
financial service provider. There are also many different cash management solutions for
both companies and individuals seeking to get the best return on cash assets or the most
efficient use of cash.

 Summary

 Cash management, also known as treasury management, is a process that

involves collecting and managing cash flows.
 Chief financial officers, business managers, and corporate treasurers are
usually the main individuals responsible for overall cash management
strategies, stability analysis, and cash related responsibilities.
 Many businesses fail at cash management and the reasons vary. Typically, a
poor understanding of the cash flow cycle, profit versus cash, lack of cash
management skills, and bad capital investments are the reasons for failing at
cash management.

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 1.4 CHARACTERISTIC

Cash management as the word suggests is the optimum utilization of cash to ensure
maximum liquidity and maximum profitability. It refers to the proper collection,
disbursement, and investment of cash.

For a small business, proper utilization of cash ensures solvency. Hence, cash management
is a vital business function; it is a function that manages the collection and utilization of
cash.

Just like a ‘no cash situation’ in our day to day lives can be a nightmare, for a business it can
be devastating. Especially for small businesses, it can lead to a point of no return. It affects
the credibility of the business and can lead to them shutting down.

Hence, the most important task for business managers is to manage cash. Management needs
to ensure that there is adequate cash to meet the current obligations while making sure that
there are no idle funds. This is very important as businesses depend on the recovery of
receivables. If a debt turns bad (irrecoverable debt) it can jeopardize the cash flow.
Therefore, cash management is also about being cautious and making enough provision for
contingencies like bad debts, economic slowdown, etc.

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1.5 FUNCTION OF CASH MANAGEMENT

In an ideal scenario, an organization should be able to match its cash inflows to its cash
outflows. Cash inflows majorly include account receivables and cash outflows majorly
include account payables.

Practically, while cash outflows like payment to suppliers, operational

expenses, payment to regulators are more or less certain, cash inflows can be tricky. So the
functions of cash management can be explained as follows :

 Inventory Management
Cash management helps an organization in managing its inventories. Higher inventory
in hand indicates trapped sales, leading to less liquidity. Therefore, a company must
always focus on fast pacing it’s stock out to allow cash movement.

13
 Receivables Management
An organization raises invoices for its sales. In these cases, the credit period for
receiving the cash can range between 30 – 90 days. Here, the organization has
recorded the sales but has not yet received cash for the transactions. So the cash
management function will ensure faster recovery of receivables to avoid a cash
crunch.
If the average time for recovery is shorter, the organization will have enough cash in
hand to make its payments. Timely payments ensure lesser costs (interests, penalties)
to the organization. Receivables management also includes a robust mechanism for
follow-ups. This will ensure faster recovery and it will also assist the business to
predict bad debts and unforeseen situations.
While receivables management is one of the primary areas in the cash management
function, payables management is also important. Payables arise when the
organization has made purchases on credit and needs to make payments for the same
within a fixed time.
An organization can take short-term credit from banks and financial institutions.
However, these credit facilities come at a cost and therefore, an organization must
ensure that they maintain a good liquidity position; this will help in timely repayments
of debts.

 Forecasting
While planning investments, the managers need to be very careful as they need to
plan for future contingencies and also ensure profitability. For this, they must use
efficient forecasting and management tools. When the cash inflows and outflows are
efficiently managed it gives the firm good liquidity.

 Short-term investments
Avoiding cash crunch, insolvency and ensuring financial stability are the main criteria
of cash management. But it is equally important to invest the surplus cash in hand
wisely. Despite being a liquid asset, idle cash does not generate any returns. While
investing in short-term investments an organization must ensure liquidity and optimum

14
 returns.
Therefore, this decision needs to be taken with prudence. Here, the quantum/amount
of investment needs to be calculated and decided carefully. This caution is necessary
because an organization cannot invest all the available funds. Businesses need to
reserve cash for contingencies (cash in hand) too.

 Other functions
Cash management also includes monitoring the bank accounts, managing electronic
banking, pooling and netting of assets, etc. So the cash management for treasury can
also be a core function. Although for large corporates this function is managed by
software, small businesses have to monitor it manually and ensure liquidity at all
times.
To add, large businesses have access to credit facilities at competitive rates. For small
businesses that access is not available. Therefore cash management is vital for them.
However,
even large corporations need to monitor their systems time and again to avoid a
situation of bankruptcy.

15
1.6 TYPES OF CASH MANAGEMENT

 Cash Flow from Operating Activities: It is found on an organization’s cash flow

statement and does not include cash flow from investing.
 Free Cash Flow to Equity: Free Cash Flow to Equity represents the cash
available after the capital is reinvested.
 Free Cash Flow to The Firm: It is used for valuation and financial modeling.
 The Net Change in Cash: It refers to the movement in the cash flow from one
accounting period to another.

16
 1.7 ADVANTAGES OF CASH MANAGEMENT

Effectively using cash management with trade finance products brings tangible benefits
to both corporates and financial institutions. Learn the various benefits of cash
management process.

 Effectively using cash management with trade finance products brings

tangible benefits to both corporates and financial institutions.
 It ensures liquidity and optimal use of cash resources by:
 Having enough cash on hand at the right time in order to fund core business
operations and improve working capital position
 Visibility into expected cash needs and forecasted cash receipts
 Ability to analyze enterprise-wide cash requirements and currency exposures
 Daily cash position and projected cash forecasts to minimize idle cash
 Real time cash positioning for preventing bank balance overdrafts and
effectively managing liquidity
 Bank statement reconciliation protecting unauthorized use, maintain accurate cash
balances, identify and resolve bank errors
 Cash management also helps you to implement explicit segregation of duties
helping minimize

17
 1.8 LIMITATIONS OF CASH MANAGEMENT

Cash management is an inevitable part of business organizations. However, it has a few

shortcomings which make it unsuitable for small organizations; these are as follows:

Cash management is a very time consuming and Skillful activity which is required to be
performed regularly.

As it requires financial expertise, the company may need to hire consultants or other experts
to perform the task by paying administrative and consultation charges.

Small business entities which are managed solely, face problems such as lack of skills,
knowledge, time and risk-taking ability to practice cash management.

Cash management overlooks the accrual principle of the audit.

It is historic that is, it repositions the existing info which is given in the profit and loss
statement as well as the balance sheet.

It is not a substitute for earnings and also loss declaration. It

ignores the non-cash deals.

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 1.9 CASH FLOW MANAGEMENT TECHNIQUES

Managing cash flow is a contemplative process and requires a lot of analytical thinking. The
various techniques or tools used by the managers to practice cash flow management are as
follows:

 Accelerating Collection of Accounts Receivable: One of the best ways to improve

cash inflow and increase liquid cash by collecting the debts and dues from the
debtors readily.

 Stretching of Accounts Payable: On the other hand, the company should try to extend
the payment of dues by acquiring an extended credit period from the creditors.

 Cost Cutting: The company must look for the ways of reducing its operating cost to
main a good cash flow in the business and improve profitability.

19
 Regular Cash Flow Monitoring: Keeping an eye on the cash inflow and outflow,
prioritizing the expenses and reducing the debts to be recovered, makes the
organization’s financial position sound.

 Wisely Using Banking Services: The services such as a business line of credit, cash
deposits, lockbox account and sweep account should be used efficiently and
intelligently.

 Upgrading with Technology: Digitalization makes it convenient for the

organizations to maintain the financial database and spreadsheets to be
assessed from anywhere anytime.

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 1.10 HISTORY OF SBI

State Bank of India (SBI) a Fortune 500 company, is an Indian Multinational, Public Sector
Banking and Financial services statutory body headquartered in Mumbai. The rich heritage
and legacy of over 200 years, accredits SBI as the most trusted Bank by Indians through
generations.

SBI, the largest Indian Bank with 1/4th market share, serves over 45 crore customers through
its vast network of over 22,000 branches, 62617 ATMs/ADWMs, 71,968 BC outlets, with an
undeterred focus on innovation, and customer centricity, which stems from the core values of
the Bank - Service, Transparency, Ethics, Politeness and Sustainability.

The Bank has successfully diversified businesses through its various subsidiaries i.e SBI
General Insurance, SBI Life Insurance, SBI Mutual Fund, SBI Card, etc. It has spread its
presence globally and operates across time zones through 229 offices in 31 foreign
countries.

Growing with times, SBI continues to redefine banking in India, as it aims to offer
responsible and sustainable Banking solutions..

21
 Evolution Of SBI
The origin of the State Bank of India goes back to the first decade of the nineteenth
century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806.
Three years later the bank received its charter and was re- designed as the Bank of
Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of
British India sponsored by the Government of Bengal. The Bank of Bombay (15 April
1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These
three banks remained at the apex of modern banking in India till their amalgamation
as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence
either as a result of the compulsions of imperial finance or by the felt needs of local
European commerce and were not imposed from outside in an arbitrary manner to
modernize India's economy. Their evolution was, however, shaped by ideas culled
from similar developments in Europe and England, and was influenced by changes
occurring in the structure of both the local trading environment and those in the
relations of the Indian economy to the economy of Europe and the global economic
framework

BANK OF BENGAL H. O

22
 Establishment

23
The establishment of the Bank of Bengal marked the advent of limited liability, joint-
stock banking in India. So was the associated innovation in banking, viz. the decision
to allow the Bank of Bengal to issue notes, which would be accepted for payment of
public revenues within a restricted geographical area. This right of note issue was very
valuable not only for the Bank of Bengal but also its two siblings, the Banks of
Bombay and Madras. It meant an accretion to the capital of the banks, a capital on
which the proprietors did not have to pay any interest. The concept of deposit banking
was also an innovation because the practice of accepting money for safekeeping (and
in some cases, even investment on behalf of the clients) by the indigenous bankers had
not spread as a general habit in most parts of India. But, for a long time, and especially
up to the time that the three presidency banks had a right of note issue, bank notes and
government balances made up the bulk of the investible resources of the banks.
The three banks were governed by royal charters, which were revised from time to
time. Each charter provided for a share capital, four-fifth of which were privately
subscribed and the rest owned by the provincial government. The members of the
board of directors, which managed the affairs of each bank, were mostly
proprietary directors representing the large European managing agency houses in
India.
The rest were government nominees, invariably civil servants, one of whom was
elected as the president of the board.

24
GROUP PHOTOGRAPH OF CENTRAL BOARD (1921)

25
 Business

The business of the banks was initially confined to discounting of bills of exchange or
other negotiable private securities, keeping cash accounts and receiving deposits and
issuing and circulating cash notes. Loans were restricted to Rs.one lakh and the period
of accommodation confined to three months only. The security for such loans was
public securities, commonly called Company's Paper, bullion, treasure, plate, jewels,
or goods 'not of a perishable nature' and no interest could be charged beyond a rate of
twelve per cent. Loans against goods like opium, indigo, salt woolens, cotton, cotton
piece goods, mule twist and silk goods were also granted but such finance by way of
cash credits gained momentum only from the third decade of the nineteenth century.
All commodities, including tea, sugar and jute, which began to be financed later, were
either pledged or hypothecated to the bank.
Demand promissory notes were signed by the borrower in favor of the guarantor,
which was in turn endorsed to the bank. Lending against shares of the banks or on
the mortgage of houses, land or other real property was, however, forbidden.
Indians were the principal borrowers against deposit of Company's paper, while the
business of discounts on private as well as salary bills was almost the exclusive
monopoly of individuals Europeans and their partnership firms. But the main function
of the three banks, as far as the government was concerned, was to help the latter raise
loans from time to time and also provide a degree of stability to the prices of
government securities.

26
OLD BANK OF BENGAL

27
 Major change in the conditions

A major change in the conditions of operation of the Banks of Bengal, Bombay and
Madras occurred after 1860. With the passing of the Paper Currency Act of 1861, the
right of note issue of the presidency banks was abolished and the Government of India
assumed from 1 March 1862 the sole power of issuing paper currency within British
India. The task of management and circulation of the new currency notes was
conferred on the presidency banks and the Government undertook to transfer the
Treasury balances to the banks at places where the banks would open branches. None
of the three banks had till then any branches (except the sole attempt and that too a
short-lived one by the Bank of Bengal at Mirzapore in 1839) although the charters had
given them such authority. But as soon as the three presidencybands were assured of
the free use of government Treasury balances at places where they would open
branches, they embarked on branch expansion at a rapid pace. By 1876, the branches,
agencies and sub agencies of the three presidency banks covered most of the major
parts and many of the inland trade centers in India. While the Bank of Bengal had
eighteen branches including its head office, seasonal branches and sub agencies, the
Banks of Bombay and Madras had fifteen each.

BANK OF MADRAS NOTE DATED 1861 For Rs.10

28
 Presidency Banks Act

The presidency Banks Act, which came into operation on 1 May 1876, brought the
three presidency banks under a common statute with similar restrictions on business.
The proprietary connection of the Government was, however, terminated, though the
banks continued to hold charge of the public debt offices in the three presidency
towns, and the custody of a part of the government balances. The Act also stipulated
the creation of Reserve Treasuries at Calcutta, Bombay and Madras into which sums
above the specified minimum balances promised to the presidency banks at only their
head offices were to be lodged. The Government could lend to the presidency banks
from such Reserve Treasuries but the latter could look upon them more as a favour
than as a right.

BANK OF MADRAS

29
 Bank of Madras

The decision of the Government to keep the surplus balances in Reserve Treasuries
outside the normal control of the presidency banks and the connected decision not to
guarantee minimum government balances at new places where branches were to be
opened effectively checked the growth of new branches after 1876. The pace of
expansion witnessed in the previous decade fell sharply although, in the case of the
Bank of Madras, it continued on a modest scale as the profits of that bank were
mainly derived from trade dispersed among a number of port towns and inland centres
of the presidency. India witnessed rapid commercialisation in the last quarter of the
nineteenth century as its railway network expanded to cover all the major regions of
the country. New irrigation networks in Madras, Punjab and Sind accelerated the
process of conversion of subsistence crops into cash crops, a portion of which found
its way into the foreign markets. Tea and coffee plantations transformed large areas of
the eastern Terais, the hills of Assam and the Nilgiris into regions of estate agriculture
par excellence. All these resulted in the expansion of India's international trade more
than six-fold. The three presidency banks were both beneficiaries and promoters of
this commercialisation process as they became involved in the financing of practically
every trading, manufacturing and mining activity in the sub-continent. While the
Banks of Bengal and Bombay were engaged in the financing of large modern
manufacturing industries, the Bank of Madras went into the financing of large modern
manufacturing industries, the Bank of Madras went into the financing of small-scale
industries in a way which had no parallel elsewhere. But the three banks were
rigorously excluded from any business involving foreign exchange. Not only was
such business considered risky for these banks, which held government deposits, it
was also feared that these banks enjoying government patronage would offer unfair
competition to the exchange banks which had by then arrived in India. This exclusion
continued till the creation of the Reserve Bank of India in 1935.

30
BANK OF BOMBAY

31
 Presidency Banks of Bengal

The presidency Banks of Bengal, Bombay and Madras with their 70 branches were
merged in 1921 to form the Imperial Bank of India. The triad had been transformed
into a monolith and a giant among Indian commercial banks had emerged. The new
bank took on the triple role of a commercial bank, a banker's bank and a banker to
the government.
But this creation was preceded by years of deliberations on the need for a 'State
Bank of India'. What eventually emerged was a 'half-way house' combining the
functions of a commercial bank and a quasi-central bank. The establishment of the
Reserve Bank of India as the central bank of the country in 1935 ended the quasi-
central banking role of the Imperial Bank.
The latter ceased to be bankers to the Government of India and instead became agent
of the Reserve Bank for the transaction of government business at centres at which the
central bank was not established. But it continued to maintain currency chests and
small coin depots and operate the remittance facilities scheme for other banks and the
public on terms stipulated by the Reserve Bank. It also acted as a bankers' bank by
holding their surplus cash and granting them advances against authorised securities.
The management of the bank clearing houses also continued with it at many places
where the Reserve Bank did not have offices. The bank was also the biggest tenderer
at the Treasury bill auctions conducted by the Reserve Bank on behalf of the
Government.
The establishment of the Reserve Bank simultaneously saw important amendments
being made to the constitution of the Imperial Bank converting it into a purely
commercial bank. The earlier restrictions on its business were removed and the bank
was permitted to undertake foreign exchange business and executor and trustee
business for the first time.

32
 Imperial Bank
The Imperial Bank during the three and a half decades of its existence recorded an
impressive growth in terms of offices, reserves, deposits, investments and advances,
the increases in some cases amounting to more than six-fold. The financial status and
security inherited from its forerunners no doubt provided a firm and durable platform.
But the lofty traditions of banking which the Imperial Bank consistently maintained
and the high standard of integrity it observed in its operations inspired confidence in
its depositors that no other bank in India could perhaps then equal. All these enabled
the Imperial Bank to acquire a pre-eminent position in the Indian banking industry and
also secure a vital place in the country's economic life.

STAMP OF IMPERIAL BANK OF INDIA

When India attained freedom, the Imperial Bank had a capital base (including
reserves) of Rs.11.85 crores, deposits and advances of Rs.275.14 crores and
33
 Rs.72.94 crores respectively and a network of 172 branches and more than 200 sub
offices extending all over the country.

 First Five Year Plan

In 1951, when the First Five Year Plan was launched, the development of rural India
was given the highest priority. The commercial banks of the country including the
Imperial Bank of India had till then confined their operations to the urban sector and
were not equipped to respond to the emergent needs of economic regeneration of the
rural areas. In order, therefore, to serve the economy in general and the rural sector in
particular, the All India Rural Credit Survey Committee recommended the creation of
a state-partnered and state-sponsored bank by taking over the Imperial Bank of India,
and integrating with it, the former state-owned or state-associate banks. An act was
accordingly passed in Parliament in May 1955 and the State Bank of India was
constituted on 1 July 1955. More than a quarter of the resources of the Indian banking
system thus passed under the direct control of the State. Later, the State Bank of India
(Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take
over eight former State-associated banks as its subsidiaries (later named Associates).
The State Bank of India was thus born with a new sense of social purpose aided by the
480 offices comprising branches, sub offices and three Local Head Offices inherited
from the Imperial Bank. The concept of banking as mere repositories of the
community's savings and lenders to creditworthy parties was soon to give way to the
concept of purposeful banking subserving the growing and diversified financial needs
of planned economic development. The State Bank of India was destined to act as the
pacesetter in this respect and lead the Indian banking system into the exciting field of
national development.

34
 Vision Mission Value

 Vision

Be the market and industry leader and benchmark for Factoring Companies in the

Country.
35
 Mission

Provide world class products and service to clients in factoring and related

activities.

Create and expand the market.

Create and value and enrichment to all the stakeholders Viz., Customers, Shareholders

and Employees.

Continuous innovation in processes and functions.

 Value

High standards of professionalism and efficiency in all spheres of functioning. High

standards of integrity and fairplay.

Build the institution through building up and upgrading skills and attitudes. Best

practices and standards in governance and in the business.

36
 AWARDS

1. SBI RECOGNISED AS ICONIC BRAND OF INDIA 2021 BY THE

ECONOMIC TIMES.

2. SBI ADJUDGED OUTSTANDING PSU OF THE YEAR AT 11Th

MANAGING INDIA AWARDS BY ALL INDIA MANAGEMENT
ASSOCIATION.

3. Brandon Hall Awards, Excellence in Learning 2020 for “Nayi Disha”

 Gold Winner under ‘Best Use of Blended Learning’ category

 Gold Winner under ‘Best Learning Program supporting a Change

Transformation Business Strategy’ category.

 Bronze winner under ‘Best Unique or Innovative Development Program’ category.

4. Brandon Hall Awards, 2020 for Learning initiatives benefitting 2 lakh

Employees

 Technology Excellence Award 2020 for e-RBC

 Technology Excellence Award for e-Gyanshala

5. State Bank Bhavan awarded the Performance Challenge Award 2020 by

Indian Green Building Council (IGBC).

6. SBI wins three awards at Digixx 2020 Virtual Summit

 Gold winner for Digital marketing Excellence in Content Marketing (Banking)

 Gold winner for Digital Marketing Excellence in Video (Banking)

 Silver winner for Digital marketing Excellence in Social Media (BFSI)

37
 7. Dun & Bradstreet’s Bank Tech Awards 2019 received on 27.02.2020

 Winner under AI and ML & Robotics Process Automation category

 Winner under Data Analytics/BI/Big Data category.

8. Finnovati Award 2020 received on 10.02.2020

 Winner of “Most Innovative Project” category for CHAPDEX (Customer Happiness

Index)

9. IBA Award (15th Banking Technology Awards 2018-19) received on

06.02.2020

 Winner of the “Best Technology Bank of the Year (Large Bank”) category.

 Winner of the “Best Financial Inclusion Initiatives” category.

 Winner of the “The Most Innovative Project using Technology” cate

38
 CHAPTER. 2 INFORMATION OF SBI

INFORMATION ABOUT SBI

State Bank of India (SBI) is an Indian multinational public sector bank and financial
services statutory body headquartered in Mumbai, Maharashtra. SBI is the 49th largest
bank in the world by total assets and ranked 221st in the Fortune Global
500 list of the world's biggest corporations of 2020, being the only Indian bank on the list.
It is a public sector bank and the largest bank in India. with a 23% market share by assets
and a 25% share of the total loan and deposits market. It is also the fifth largest employer
in India with nearly 250,000 employees. On 14 September 2022, State Bank of India
became the third lender (after HDFC Bank and ICICI Bank) and seventh Indian company
to cross the ₹ 5-trillion market Capitalisation on the Indian stock exchanges for the first
time.

State Bank of India

The Banker to Every Indian

State Bank Bhavan, Nariman Point, Mumbai

39
 Imperial Bank of India
Formerly

Type CPSU
Traded as  NSE: SBIN
 BSE: 500112
 LSE: SBID
 BSE SENSEX Constituent
 NSE NIFTY 50 Constituent
ISIN INE062A01020
Industry Banking, financial services
Predecessor Imperial Bank of India (1921 –
1955)
Bank of Calcutta (1806 –
1921)
Bank of Bombay (1840 –
1921)
Bank of Madras
(1843 – 1921)
Founded 1 July 1955; 67 years ago State
Bank of India

 27 January 1921 Imperial Bank

of India
2 June 1806 Bank of
Calcutta 15 April 1840
Bank of Bombay 1 July
1843
Bank of Madras

Headquarters State Bank Bhawan, M.C. Road,

Nariman
Point, Mumbai, Maharashtra, India
Number of locations 22,219 Branches, 62,617 ATMs in India,
International: 229 Branches in 31 countries

Area served Worldwide

Key people Dinesh Kumar Khara
(Chairman)[1]
Products  Retail banking
 Corporate banking
 Investment banking

40
  Mortgage loans
 Private banking
 Wealth management
 Credit cards
 Finance and Insurance
Revenue ₹406,973
crore (US$51 billion)[2] (2022)
Operating income ₹78,898
crore (US$9.9 billion)[2] (2022)
Net income ₹43,774
crore (US$5.5 billion)[2] (2022)
Total assets ₹5,177,545
crore (US$650 billion)[2] (2022)
Total equity ₹300,972
crore (US$38 billion)[2] (2022)
Number of employees 2,44,250 (March 2022)[2]
Parent Ministry of Finance

(Government of India)
Subsidiaries  SBI Life Insurance Ltd
 SBI Cards and Payment Services Ltd
 SBI General Insurance (70%)
 Jio Payments Bank (30%)
 Yes Bank (30%)
 Andhra Pradesh Grameena Vikas
Bank (35%)
 Kaveri Grameena Bank (35%)

Capital ratio Tier 1 11.03% (2022)[3]

Rating  S&P BBB- / A-3/ Stable[4]
 Moody's Baa3/ P-3/ Stable[4]
 Fitch BBB- / F-3/ Stable[4]
Website bank.sbi

41
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. Overall the bank has been formed from
the merger and acquisition of more than twenty banks over the course of its 200 year history.
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 State Bank of India.
On 16th Aug 2022 an attempt to facilitate and support start-ups in the country, the State Bank
of India (SBI) announced the launch of its first "state-of-the-art" dedicated branch for start-
ups in the country in Bengaluru.

42
 CHAPTER. 3 RESEARCH AND METHOOLOGY

3.1 OBJECTIVE OF THE PROJECT

 To understand how cash is being managed by State Bank of India.

 To gain knowledge about the system prevailing in Bank.
 To suggest methods for improving cash management in Bank.
 To Study how the SBI Control cash inflows and outflows
 To analyze in detail, the way Banks currently manage Their finances and make
decisions to achieve trade off between profitability and liquidity.

43
3.2 RESEARCH DESIGN

Research is a systematic process of collecting and analyzing information (data) in

order to increase our understanding of the phenomenon about which we are concerned or
interested. A Research Design is the framework or plan for a study which is used as a guide
in collecting and analyzing the data collected. It is the blue print that is followed in
completing the study. The basic objective of research cannot be attained without a proper
research design. It specifies the methods and procedures for acquiring the information
needed to conduct the research effectively. It is the overall operational pattern of the project
that stipulates what information needs to be collected, from which sources and by what
methods.

RESEARCH METHODOLOGY

 SOURCES OF DATA COLLECTION

There are two types of data used. They are primary and secondary data. Primary data
is defined as data that is collected from original sources for a specific purpose.
Secondary data is data collected from indirect sources.

 PRIMARY SOURCES
The primary sources data These include the survey or questionnaire method, as well
as the personal interview methods of data collection.

 SECONDARY SOURCES
The secondary sources data is collected from the Online articles, Research
Analysis, websites and etc.

44
3.3 SCOPE

Cash is first of all A very Important asset for a firm. It helps the firm to meet their immediate
obligations such as payment of Salary, Rent, Wages, etc. Holding cash is important for the
firm but holding excessive cash causes loss of interest to the firm. When firm has excessive
cash, it should invest it in marketable securities and earn interest. But by investing the firm
has to meet fixed transaction cost. Cash management is a very important aspect, in financial
management all the firms must see their total cash requirement and there after invest their
money keeping in mind prospects of the company. In short cash management refers to
management of cash in the best possible way.

The cash management is the process of managing cash inflows and outflows. There are
many cash management considerations and solutions available in the financial marketplace
for both individuals and businesses. The study about the types of cash management and the
cash flow management techniques and etc.

The study of SBI Bank Cash management effect their customers , types of Account,
Interest Rate and etc.

45
3.4 LIMITATIONS OF THE STUDY

 Some of the Respondents refused to fill questionnaire during the research work.
 Some of the SBI Account holders were not well educated.
 Most of the People have account in other Bank.
 Non-Availability of laptop and PC at the time of Research.
 Respondent are not cooperative, I didn’t get enough responses for my research work.
 Little bit confused in format.
 Non-cash transactions are completely ignored, which is a violation of the
matching principle of the Gap.
 You should not use cash management as a replacement for the profit and loss
statement.
 Constraints of time.

46
 CHAPTER. 4 LITERATURE REVIEW

4.1 LITERATURE REVIEW

 Lan Lienert-(2009) This Paper describes the objectives of modern cash management.
The paper highlights that cash management is necessary because there are mismatches
between the timing of payments and the availability of cash. All definitions of cash
management emphasize the time value of government money. This paper elaborates good
cash management practices in developed countries, and the main features of the
framework for short-term cash planning. Challenges for improving cash management in
low- and middle- income countries are also discussed.

 Gerald A Pogue, Russell B Faucett, Ralph N Bussard (1969) This Paper focuses on the problem of
deter-mining the optimal level of cash balances needed to support a firm's banking system. The model
described below determines the optimal level and inter-bank allocation of cash balances at which the total cost
of the banking system is minimized. Total Cost Includes the opportunity cost of cash balances as well as any
fees paid directly to the banks. In addition to determining the optimal allocation of cash balances, the model
determines the best allocation of the firm's checking and deposit activity within the system.

47
4.2 GAP ANALYSIS

This is the Study of Cash Management in SBI Effect on their Customers

I prefer the Research paper of Lan Lienert –(2009) He Studied The modern cash
management techniques and The paper highlights that cash management is necessary
because there are mismatches between the timing of payments and the availability of cash.
This paper elaborates good cash management practices in developed countries, and the main
features of the framework for short-term cash planning. The Cash Management is similar to
my study but I am also study about the SBI Cash Management.

I prefer the Research paper of Gerald A Pogue, Russell B Faucett, Ralph N Bussard (1969)
they studied on the problem of deter-mining the optimal level of cash balances needed to
support a firm's banking system. They described below determines the optimal level and
inter-bank allocation of cash balances at which the total cost of the banking system is
minimized. The Bank Cash management is similar to my study but I am study Specific SBI
Bank Cash management and etc.

48
 CHAPTER. 5 DATA ANALYSIS AND INTERPRETATION

Data Analysis in research refers to the process of examining, cleaning, transforming, and
interpreting data collected in a study to extract useful information and draw meaningful
conclusions. The primary objective of data analysis is to identify patterns, trends and relationships
within the data that can inform research questions and contribute to the development of theories
and hypothesis.

5.1 Data Analysis involves several steps, Including :

 Data Cleaning:
This involves removing or correcting any errors, inconsistencies, or missing value in the
data set.
 Data Transforming :
This involves converting raw data into a more manageable format and creating new variables,
scale, or indices that can be used to analyze the data.
 Data Exploration:
This involves exploring the data to identify patterns, trends, and relationships using various
descriptive statistics, charts, and graphs.
 Statistical Analysis :
This involves using statistical methods to analyze the data and test hypothesis, such as

correlation analysis, regression analysis, t-test, or ANOVA .

5.2 Interpretation :

This involves interpreting the findings of data analysis, drawing conclusions and making
recommendations based on research objectives.

Data analysis is a critical component of research as it provides the evidence to support or refute
research hypothesis and questions. It enables researchers to draw meaningful conclusions from the
data, make informed decisions, and contribute to the development of knowledge in their field.
Effective data analysis requires knowledge of statistical methods, data visualization tools, and
software packages, as well as critical thinking and analytical skills.

49
5.3 Primary Data Analysis and Interpretation

Age:

 The 80% Customers of SBI Bank under the age of 18-25

 The 16% Customers of SBI Bank under the age of 26-35
 The 4% Customers of SBI Bank under the age of 36-45

50
Gender:

16

14
14

12

11
10

0
Female Male

 The most of the Male Account holders have Account in the SBI Bank
 The female Account holders are less as compare to male Account holders
 In SBI Bank have 56% Male Account holders and
 The 44% are female Account holders
51
Professional Status :

 The 68% of Students have their Account in SBI Bank

 The Students open zero Balance Account for Scholarships and get some extra
Benefits from the government for their Study
 The 28% are Working Professional have their Account in SBI Bank and
 The 4% are unemployed

52
* Do you have Account in SBI Bank ?

14

12

10

0
No Other Bank Yes

 The 12,(48%) people have Account in SBI Bank

 The 8,(32%)people have Account in other Bank and
 The 5,(20 %) people are not have Account
53
* What do you think about SBI Bank Services ?

 The 88% people think SBI Bank Services are Good

 The 8% people think SBI Bank provide great Services and
 The 4% people think SBI Bank provide poor service

54
* Which type of Account you have ?

 The most of the people have Saving Account in Bank

 The 92% people have Saving Account
 The 4% people have Current Account in Bank and
 The few people are have Recurring Account

55
* Do you think SBI Bank E-Services is Good ?

 The 88% people are Agree SBI Bank provide good E-Services
 The 8% people are Strongly Agree the SBI Bank provide good E-Services and
 The 4% people are Disagree the SBI Bank E-Services are not good

56
* How much % Interest Rate is Provide by SBI Bank in your Saving A/c ?

12

1-2 % 3-4 % 5-6 % 6-8 %

The According to Research 3-4 % Interest Rate is provide by SBI Bank in Savings Account

57
* How much % Interest Rate is provide by SBI Bank in your fixed A/c ?

14

12

10

0
13-15 % 3-5 % 6-8 % 9-12 %

The 6-8 % Interest Rate is provide by SBI Bank in fixed Account

58
* Is SBI Bank loan interest rate high ?

 The 52% people said maybe the Bank loan internet rate high
 The 24% people said the SBI Bank loan interest rate is not high and
 The 24% people said SBI Bank loan interest rate is high
 But According to the Research The most of the people said SBI Bank loan interest
rate is maybe high

59
* Are there any limit for fixed deposit ?

12

10

0
Maybe No No limit Yes

 The most of the people say maybe the limit for fixed deposit
 The people say their is no limit for fixed deposit

60
* What do you think SBI Bank provide more interest Benefits to their Senior
Citizens ?

 The 56% people think SBI Bank maybe provide more interest benefits to their senior
Citizens
 The 24% people are agree SBI Bank provide more interest benefits to their senior
Citizens and
 The 20% people are not agree that SBI Bank provide more interest benefits to their
senior Citizens

61
* In SBI Bank ATM Cash is Available 24*7 hour's ?

 The most of the people agree that SBI Bank ATM Cash is Available 24*7 hour’s
 The 72% people are agree that SBI Bank ATM Cash is Available 24*7 hour’s
 The 24% people are Disagree with SBI Bank that Cash is not available 24*7 hour’s
 The 4% people are Strongly Disagree with SBI Bank that Cash is not available 24*7
hour’s

62
* How much money can deposit in a savings account in one time ?

 The 60% people said up-to Rs 50000 can be deposit in savings account in one time
 The 12% people said up-to Rs 100000 can be deposit in savings account at one time
 The 20% people said up-to Rs 200000 can be deposit in savings account at one time
and
 The 8% people said up-to Rs 300000 can be deposit in savings account at one time
 But According to Research we can deposit up-to Rs 200000 in savings account at one
time

63
* How much money can be withdrawal in savings account at one time ?

 The 48% people said be can withdrawal up-to Rs 20000 at one time
 The 36% people said be can withdrawal up-to Rs 50000 at one time
 The 8% people said be can withdrawal up-to Rs 100000 at one time and
 The 8% people said be can withdrawal up-to Rs 200000 at one time
 But According to Research we can withdrawal up-to Rs 200000 at one time

64
* What do you think during lockdown SBI Cash management was effected to their
customer ?

 The 52 % people think during lockdown SBI Cash management was maybe
effected to their customer
 The 32% people agree during lockdown SBI Cash management was effected to their
customer and
 The 16% people think during lockdown SBI Cash management was not
effected to their customer
 But According to Research SBI Cash management was effected to their
customer during lockdown

65
* Do you think during lockdown SBI provide good services to their Customers ?

Strongly
Disagree

Strongly Agree

Disagree

Agree

0 2 4 6 8 10 12 14 16 18

 The 16,(64%) people are agree that SBI provided good services to their customer
during lockdown
 The 5,(20%) people are Disagree that SBI provided good services to their
customer during lockdown
 The 3,(12%) people are Strongly agree that SBI provided good services to their
customer during lockdown and
 The 1,(4%) people are Strongly Disagree that SBI provided good services to their
customer during lockdown
 But According to Research most of the people said SBI provided good
services to their customer during lockdown also

66
* Is SBI Bank maintain good Relationship with their Customers ?

14

12

10

0
Maybe No Yes

 The 12,(48%) people said maybe SBI Bank maintain good Relationship with their
customers
 The 9,(36%) people said yes SBI Bank maintain good Relationship with their
customers and
 The 4,(16%) people said no SBI Bank not maintain good Relationship with their
customers
 But According to Research most of the people said SBI Bank not maintain good
Relationship with their customers, SBI Employees talk rudely to the customer who
are not well educated
67
* Do you think SBI Bank Aware their customers about New guidelines, policy, Rules
and Regulations etc.?

 The 48% people said yes SBI Bank Aware their customers about New
guidelines, policy, rules and regulations etc.
 The 20% people said no SBI Bank not Aware their customers about New
guidelines, policy, rules and regulations etc. and
 The 32% people said maybe SBI Bank Aware their customers about New
guidelines, policy, rules and regulations etc.
 But According to Research most of the people said SBI Bank not Aware their
customers about New guidelines, policy, Rules and Regulations etc.

68
* What Improvement you want in SBI Bank Services please give your Suggestion ?

Improvement in
SBI Bank Services

69
 CHAPTER. 6 SUGGESTIONS

Improvement is a continuous process, also it depends on the need of customer. An

improvement that is not beneficial to customer's is unnecessary. So, improvement
happens according to the needs.

Now, needs are also of two types mainly. First one is emergency need. For example, the
branch of SBI near to you does not have an ATM installed. However, there is not much rush
in the branch. You go there, fill the form (or use green channel), and gets the money or any
other work done easily. But, one day you went and found that there is a queue infront of the
cash counter and you have to stand in the queue. Now, you will think that there should be an
ATM here. Now, this is emergency need. Just for one or few days in a month when rush is
somewhat high, it's not beneficial to have ATM installed in such branch.

Now the second need is genuine and long run need. For example, ATM outside a branch
which has a huge rush everyday does not usually work, then getting it worked is the utmost
need of the time.

So, what is needed for the improvement can be told or brought to knowledge only by
valuable customers. And believe me SBI seriously looks into any suggestions or
improvement if suggested by customers (though it can take some time). There is a
suggestion box in every branch, and if you really want any thing to be changed about your
branch/bank, you can drop your suggestions there.

70
 CHAPTER. 7 CONCLUSION

7.1 CONCLUSION

The management of cash is essential to the survival of any organization. Managing an

organization’s financial operation requires knowledge of the economy and ways to maximize
revenue. For any organization to operate on a daily basis adequate cash flow is required.
Without cash management the organization will be unable to function because there is no cash
readily available in case of inconsistencies in the market. Cash is also needed to keep the cycle
of the company’s operations going. Many organizations have maximized the use of cash on
hand by effective cash management techniques and the use of short-term financing. This paper
will discuss various cash management techniques and short-term financing methods used by
organizations.

71
7.2 BIBLIOGRAPHY

 cleartax.in
 educba.com
 theinvestorsbook.com
 Sbi.co.in
 en.m.wikipedia.org
 Online Articles
 elibrary.imf.org
 dspace.mit.edu

72
 CHAPTER. 8 ANNEXURE

8.1 ANNEXURE

An annexure is intended to supplement a document with additional information. This

differs from an amendment, which corrects or changes information. An annexure is similar to
an addendum or an appendix.

An annexure is a standalone document which is placed at the end of the research paper,
which means that it is capable of being submitted alone, without the main document.

8.2 GOOGLE FORM

https://docs.google.com/forms/d/e/1FAIpQLSdvsoZT8TwPB2oER_X
tRbjGhsJGEOh7UeH_Xya2Vr6PiHbZkA/viewform?vc=0&c=0&w=
1&flr=0&usp=mail_form_link

* Do you have Account in SBI Bank ?

* What do you think about SBI Bank Services ?

* Which type of Account you have ?

* Do you think SBI Bank E-Services is Good ?

* How much % Interest Rate is provide by SBI Bank in your Saving A/c ?

* How much % Interest Rate is provide by SBI Bank in your fixed A/c ?

* Is SBI Bank loan interest rate high ?

* Are there any limit for fixed deposit ?

* What do you think SBI Bank provide more interest Benefits to their Senior
Citizens ?

73
* In SBI Bank ATM Cash is Available 24*7 hour's ?

* How much money can deposit in a savings account in one time ?

* How much money can be withdrawal in savings account at one time ?

* What do you think during lockdown SBI Cash management was effected to their
customer ?

* Do you think during lockdown SBI provide good services to their customer ?

* Is SBI Bank maintain good Relationship with their customers ?

* Do you think SBI Bank Aware their customers about New guidelines, policy, Rules
and Regulations etc.?

* What Improvement you want in SBI Bank Services please give your suggestion ?

74
75