final project sbi product

8/15/2019 Final Project SBI product

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STATE BANK OF INDIA (SBI)

The evolution of State Bank of India can be traced back to the first decade of the 19th

century. It began with the establishment of the Bank of Calcutta in Calcutta, on !une 1"#$.

The bank was redesigned as the Bank of Bengal, three years later, on !anuary 1"#9. It was

the first ever %oint&stock bank of the British India, established under the s'onsorshi' of the

(overnment of Bengal. Subse)uently, the Bank of Bombay *established on 1+ 'ril 1"-#

and the Bank of /adras *established on 1 !uly 1"-0 followed the Bank of Bengal. These

three banks dominated the modern banking scenario in India until when they were

amalgamated to form the Im'erial Bank of India on T2 !anuary191.

n im'ortant turning 'oint in the history of State Bank of India is the launch of the first 3ive

4ear 5lan of inde'endent India, in 19+1. The 5lan aimed at serving the Indian economy in

general and the rural sector of the country, in 'articular. 6ntil the 5lan, the commercial banks

of the country, including the Im'erial Bank of India, confined their services to the urban

sector. /oreover, they were not e)ui''ed to res'ond to the growing needs of the economic

revival taking sha'e in the rural areas of the country. Therefore, in order to serve the

economy as a whole and rural sector in 'articular, the ll India 7ural Credit Survey

Committee recommended the formation of a state&'artnered and state&s'onsored bank. The

ll India 7ural Credit Survey Committee 'ro'osed the takeover of the Im'erial Bank of

India, and integrating with it, the former state&owned or state&associate banks. Subse)uently,

an ct was 'assed in the 5arliament of India in /ay 19++. s a result, the State Bank of India

*SBI was established on 1 !uly 19++. This resulted in making the State Bank of India more

'owerful, because as much as a )uarter of the resources of the Indian banking system were

controlled directly by the State. 8ater on, the State Bank of India *Subsidiary Banks ct was 'assed in 19+9. The ct enabled the State Bank of India to make the eight former State&

associated banks.

The State Bank of India emerged as a 'acesetter, with its o'erations carried out by the -"#

offices com'rising branches, sub offices and three 8ocal 2ead ffices, inherited from the

Im'erial Bank. Instead of serving as mere re'ositories of the community:s savings and

lending to creditworthy 'arties, the State Bank of India catered to the needs of the customers,

by banking 'ur'osefully. The bank served the heterogeneous financial needs of the 'lanned

economic develo'ment.

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BANK OF BENGAL H.O.

ESTABLISHMENTThe establishment of the Bank of Bengal marked the advent of limited liability,

%oint&stock banking in India. So was the associated innovation in banking, vi;.the decision to allow the Bank of

Bengal to issue notes, which would be acce'ted for

'ayment of 'ublic revenues

within a

restrictedgeogra'hical 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 /adras. It meant an accretion to the ca'ital of the

banks, a ca'ital on which the 'ro'rietors did not have to 'ay any interest. The conce't of

de'osit banking was also an innovation because the 'ractice of acce'ting money for

safekee'ing *and in some cases, even investment on behalf of the clients by the indigenous

bankers had not s'read as a general habit in most 'arts of India. But, for a long time, and

es'ecially u'to the time that the three 'residency banks had a right of note issue, bank notes

and government balances made u' the bulk of the investible resources of the banks.

The three banks were governed by royal charters, which were revised from time to time.


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The business of the banks was initially confined to discounting of bills of e=change or other

negotiable 'rivate securities, kee'ing cash accounts and receiving de'osits and issuing and

circulating cash notes. 8oans were restricted to 7s.one lakh and the 'eriod of accommodation

confined to three months only. The security for such loans was 'ublic securities, commonly

called Com'any:s 5a'er, bullion, treasure, 'late, %ewels, or goods :not of a 'erishable nature:and no interest could be charged beyond a rate of twelve 'er cent. 8oans against goods like

o'ium, indigo, salt woollens, cotton, cotton 'iece 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. ll commodities, including tea, sugar and %ute, which began to be

financed later, were either 'ledged or hy'othecated to the bank. >emand 'romissory notes

were signed by the borrower in favour of the guarantor, which was in turn endorsed to the

bank. 8ending against shares of the banks or on the mortgage of houses, land or other real

'ro'erty was, however, forbidden.

*O&' B"%- o# B$%!"&

Indians were the 'rinci'al borrowers against de'osit of Com'any:s

'a'er, while the business of discounts on 'rivate as well as salary bills was almost the

e=clusive mono'oly of individuals


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1"$, the branches, agencies and sub agencies of the three 'residency banks covered most of

the ma%or 'arts and many of the inland trade centres in India. ?hile the Bank of Bengal had

eighteen branches including its head office, seasonal branches and sub agencies, the Banks of

Bombay and /adras had fifteen each.

Bank of /adras @ote >ated 1"$1 for 7s.1

Pr$+,'$%/0 B"%-+ A/

The 'residency Banks ct, which came into o'eration on 1 /ay 1"$, brought the three

'residency banks under a common statute with similar restrictions on business. The

'ro'rietary connection of the (overnment was, however, terminated, though the banks

continued to hold charge of the 'ublic debt offices in the three 'residency towns, and the

custody of a 'art of the government balances. The ct also sti'ulated the creation of 7eserve

Treasuries at Calcutta, Bombay and /adras into which sums above the s'ecified minimum

balances 'romised to the 'residency banks at only their head offices were to be lodged. The(overnment could lend to the 'residency banks from such 7eserve Treasuries but the latter

could look u'on them more as a favour than as a right

BANK OF MADRAS

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The

decision of the (overnment to kee' the sur'lus balances in 7eserve Treasuries outside the

normal control of the 'residency banks and the connected decision not to guarantee minimum

government balances at new 'laces where branches were to be o'ened effectively checked

the growth of new branches after 1"$. The 'ace of e='ansion witnessed in the 'revious

decade fell shar'ly although, in the case of the Bank of /adras, it continued on a modest

scale as the 'rofits of that bank were mainly derived from trade dis'ersed among a number of

'ort towns and inland centres of the 'residency.

India witnessed ra'id commercialisation in the last )uarter of the nineteenth century as its

railway network e='anded to cover all the ma%or regions of the country. @ew irrigation

networks in /adras, 5un%ab and Sind accelerated the 'rocess of conversion of subsistence

cro's into cash cro's, a 'ortion of which found its way into the foreign markets. Tea and

coffee 'lantations transformed large areas of the eastern Terais, the hills of ssam and the

@ilgiris into regions of estate agriculture 'ar e=cellence. ll these resulted in the e='ansion of

India:s international trade more than si=&fold. The three 'residency banks were both

beneficiaries and 'romoters of this commercialisation 'rocess as they became involved in the

financing of 'ractically every trading, manufacturing and mining activity in the sub&continent. ?hile the Banks of Bengal and Bombay were engaged in the financing of large

modern manufacturing industries, the Bank of /adras went into the financing of large

modern manufacturing industries, the Bank of /adras went into the financing of small&scale

industries in a way which had no 'arallel elsewhere. But the three banks were rigorously

e=cluded from any business involving foreign e=change. @ot only was such business

considered risky for these banks, which held government de'osits, it was also feared that

these banks en%oying government 'atronage would offer unfair com'etition to the e=change

banks which had by then arrived in India. This e=clusion continued till the creation of the

7eserve Bank of India in 190+.B"%- o# Bo12"0

Presidency Banks of Bengal

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The 'residency Banks of Bengal, Bombay and /adras with their # branches were merged in

191 to form the Im'erial 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 tri'le role of

a commercial bank, a banker:s bank and a banker to the government.

But this creation was 'receded by years of deliberations on the need for a :State Bank of

India:. ?hat eventually emerged was a :half&way house: combining the functions of a

commercial bank and a )uasi&central bank.

The establishment of the 7eserve Bank of India as the central bank of the country in 190+

ended the )uasi&central banking role of the Im'erial Bank. The latter ceased to be bankers to

the (overnment of India and instead became agent of the 7eserve 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 de'ots and o'erate the remittance

facilities scheme for other banks and the 'ublic on terms sti'ulated by the 7eserve Bank. Italso acted as a bankers: bank by holding their sur'lus cash and granting them advances

against authorised securities. The management of the bank clearing houses also continued

with it at many 'laces where the 7eserve Bank did not have offices. The bank was also the

biggest tenderer at the Treasury bill auctions conducted by the 7eserve Bank on behalf of the

(overnment.

The establishment of the 7eserve Bank simultaneously saw im'ortant amendments being

made to the constitution of the Im'erial Bank converting it into a 'urely commercial bank.

The earlier restrictions on its business were removed and the bank was 'ermitted to undertake

foreign e=change business and e=ecutor and trustee business for the first time .

I1p$r,"& B"%-

Stam' of Im'erial Bank of India

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The Im'erial Bank during the three and

a half decades of

its

e=istence recorded an

im'ressive growth in terms of offices, reserves,

de'osits, investments and advances, the increases in some cases amounting to more than si=&

fold. The financial status and security inherited from its forerunners no doubt 'rovided a firm

and durable 'latform. But the lofty traditions of banking which the Im'erial Bank

consistently maintained and the high standard of integrity it observed in its o'erations

ins'ired confidence in its de'ositors that no other bank in India could 'erha's then e)ual. ll

these enabled the Im'erial Bank to ac)uire a 're&eminent 'osition in the Indian banking

industry and also secure a vital 'lace in the country:s economic life.

?hen India attained freedom, the Im'erial Bank had a ca'ital base *including reserves of

7s.11."+ crores, de'osits and advances of 7s.+.1- crores and 7s..9- crores res'ectively

and a network of 1 branches and more than ## sub offices e=tending all over the country

First Five Year Plan

In 19+1, when the 3irst 3ive 4ear 5lan was launched, the develo'ment of rural India was

given the highest 'riority. The commercial banks of the country including the Im'erial Bank

of India had till then confined their o'erations to the urban sector and were not e)ui''ed to

res'ond 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 'articular, the ll India

7ural Credit Survey Committee recommended the creation of a state&'artnered and state&

s'onsored bank by taking over the Im'erial Bank of India, and integrating with it, the former

state&owned or state&associate banks. n act was accordingly 'assed in 5arliament in /ay

19++ and the State Bank of India was constituted on 1 !uly 19++. /ore than a )uarter of the

resources of the Indian banking system thus 'assed under the direct control of the State.

8ater, the State Bank of India *Subsidiary Banks ct was 'assed in 19+9, enabling the State

Bank of India to take over eight former State&associated banks as its subsidiaries *later named

ssociates.

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The State Bank of India was thus born with a new sense of social 'ur'ose aided by the -"#

offices com'rising branches, sub offices and three 8ocal 2ead ffices inherited from the

Im'erial Bank. The conce't of banking as mere re'ositories of the community:s savings and

lenders to creditworthy 'arties was soon to give way to the conce't of 'ur'oseful banking

subserving the growing and diversified financial needs of 'lanned economic develo'ment.The State Bank of India was destined to act as the 'acesetter in this res'ect and lead the

Indian banking system into the e=citing field of national develo'ment

BOARD OF DIRECTOR

3rom the >esk of

The Chairman

>ear Stakeholders,

It is my 'rivilege to 'resent this 'reface to your BankAs nnual 7e'ort for the 3inancial 4ear

#10&1-. s detailed in the re'ort, your Bank continues to tread the 'ath of sustained growth

and maintain its flagshi' 'osition in the banking s'ace in India. ?e are confident that with

the su''ort of all our stakeholders your Bank will continue to 'ros'er and achieve greater

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heights in the times to comeutlook for global growth for #1- looks relatively better than

the 'revious year, with reduced tail risks. n the domestic front, although growth contracted

to around + in 341-, India continues to remain one of the fastest growing economies in the

world. utlook for the current fiscal with inflation now well within tolerance level, a''ears

better than the 'revious year. dditionally, softening of global commodity 'rices should hel'reduce the im'orted inflation in domestic economy. Trends in industrial growth are

encouraging. ?ith e='orts turning 'ositive,cou'led with higher ca'ital inflows, managing the

current account deficit may be facilitated in the current year.gainst the above backdro' of a

challenging macro&economic environment, the domestic banking system continued to en%oy

the confidence of the banking 'ublic. This is reflected in the aggregate de'osits of all

scheduled commercial banks *SCB growing higher by 1-.0 in 341- against 10.+

growth in 341. 2owever, there was shar' deceleration in credit growth to 1-.1 in 34 10

from 1.# in 3410 due to a slow&down in investment demand and overall muted growth.

8i)uidity 'osition was, however, normal as 7BI 'rovided refinance for e='orts. Since there

was little head>ue to the downturn, many sectors were severely affected im'acting the

)uality of assets financed by the banks.(ross @5s of -# listed banks went u' by -0.1

from levels a year ago. 3urther the restructured assets book also showed an u'ward bias with

recast assets under C>7 around +# more than the whole of last year

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BOARD OF DIRECTORS

L,+ o# D,r$/or+ o% h$ C$%r"& Bo"r' o# S"$ B"%- o# I%'," "+ o%

34.35.*36

S&.No N"1$ D$+,!%",o% U%'$r

S$/,o%

o# SBI

A/

66

1. S1. Aru%'h", Bh""/h"r0" Chairman 19*a

. Shri 5. 5radee' umar /anaging >irector 19 *b

0. Shri B. Sriram /anaging >irector 19 *b

-. Shri.D.(.annan /anaging >irector 19 *b

+. Shri7a%nish umar /anaging >irector 19 *b

$. ShriSan%iv/alhotra >irector 19 *c

. Shri Sunil /ehta >irector 19 *c

". Shri /.>. /allya >irector 19 *c

9. Shri >ee'ak I. min >irector 19 *c

1#. Shri S.. /ukher%ee fficer


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The cor'orate centre of SBI is located in /umbai. In order to cater to different functions, there are

several other establishments in and outside /umbai, a'art from the cor'orate centre. The bank boasts

of having as many as 1- local head offices and + Eone ffices, located at ma%or cities throughout

India. It is recorded that SBI has about 3333 branches wellnetworkedtocater toitscustomers

throughout India.

ATM S$r7,/$+

SBI 'rovides easy access to money to its customers through more than "+## T/s in India. The Bank

also facilitates the free transaction of money at the T/s of State Bank (rou', which includes the

T/s of State Bank of India as well as the ssociate Banks F State Bank of Bikaner G !ai'ur, State

Bank of 2yderabad, State Bank of Indore, etc. 4ou may also transact money through SBI Commercial

and International Bank 8td by using theStateBankT/&cum&>ebit *Cash 5lus card.

Su2+,',"r,$+

The State Bank (rou' includes a network of eight banking subsidiaries and several non&bankingsubsidiaries. Through the establishments, it offers various services including merchant banking

services, fund management, factoringservices,'rimary dealershi'

governmentsecurities,creditcardsandinsurance.

The eight banking subsidiaries areH

• State Bank of India *SBI

• State Bank of Bikaner and !ai'ur *SBB!

• State Bank of 2yderabad *SB2

• State Bank of Indore *SBI7

•State Bank of /ysore *SB/

• State Bank of 5atiala *SB5

• State Bank of Saurashtra *SBS

• State Bank of Travancore *SBT

Sh"r$ho&',%! P"$r% 8 S"$ B"%- o# I%',"

Ho&'$r9+ N"1$ No o# Sh"r$+ : Sh"r$ Ho&',%!

5romoters --+#+$ +9.1+

3inancialInstitutions 9"1$"#11 10.#+

3oreignInstitutions "0$"0 11.+-(eneral5ublic --9+""1-- +.9-

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13/56

@Banks/utual3unds 09"9+-$ +.$

therCom'anies 1991$#- .0"

thers 00-#11- #.--

3oreign@7I 1$99-1 #.1

Central(ovt #-09" #.#0

3oreigncb 1#### #

INDIAN BANKING SYSTEM

Page | 13

7eserve Bank of India

@on&Schedule BanksSchedule Banks

Commercial

Banks

State co&o'

BanksCommercial BanksCentral co&o'

Banks and

5rimary Cr.

Societies

Indian 3oreign

2>3C,ICICI,IS

etc

5rivate Sector

Banks

5ublic Sector

Banks

ther @ationali;ed

Banks

7egional 7ural BanksS"$ B"%- o#

I%'," "%' ,+

Su2+,',"r,$+


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ABOUT PRO;ECT TITLES

The main ob%ective of this 'ro%ect is to study the loan scheme of State Bank f India. The

study was mainly conducted to understand the conce't of various loan scheme and eligibility.

The main 'ur'ose of the study was to fulfill the need of academic 'rogram, which is

im'ortant 'art of /B */aster of Business /anagement degree 'rogram has been under

taken as 'er of $# days summer training in State Bank of India. The to'ic of study on loan

'roduct of SBI *Dinchur Branch Some limitation were also thereJ study is based u'on the

assum'tion that res'ondents were truthful in 'roviding the data, 7es'onding get irritated

when the regular )uestionnaire is done and generally avoid cross )uestioning.

3or colleting the data a )uestionnaire was 're'ared so that all the information can be

collected and analy;ed. Secondary sources were used to obtain information on State Bank of

India and the other 'layer history.

@on 'robability sam'ling method was used for collecting the sam'le units. It means that

every member of the 'o'ulation has an e)ual chance to being selected.

n bases of the above mentioned method were used and the data was collected and analy;ed

the whole study of the to'ic mainly moves around three 'hases

1 (7


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LOAN PRODUCT

AGRICULTURAL LOAN

State Bank of India is the 'ioneer and market leaders in gri&3inancing in the country with a

'ortfolio of more than 7s. 1,#,### crs in agri advances covering more than 1.1 lakh farmer

families. ?e cater to the needs of agriculturists and farmers through a vast network of 1#+#+

rural G semi&urban branches.

'art from the general branches, SBI has -" S'eciali;ed gricultural >evelo'ment

Branches *>Bs and 1" gri Commercial Branches *CBs for e=tension of high value

credit to hi&tech agriculture, agri&related S/


16/56

T0p$+ o# "!r,/u&ur"& &o"%+


17/56

The tractor and accessories 'urchased with bank s finance have to be com'rehensively

insured for the full value.3or 'rom't re'ayment, further concession of interest O1.## by

way incentive will be e=tended to the borrower and #.+# to the tractor dealer. Concession

will be e=tended in the month of %uly and will be on the basis of interest recovered between

1st !uly to 0#th %une of every year8oan is re'ayable in e)uated monthly installments in +

years, including grace 'eriod of 1 month. *7ela=ed in tune with the regular flow of funds inthe hands of the borrower.

5ostdated che)ues will be obtained from the borrower for the ho "r$ $&,!,2&$

#or r"/or &o"%?

Ngriculturists *individually or %ointly

N/inimum land holding - acres of 'erennially irrigated land.

N''licants should score of +$ under the scoring model of the bank.

N5ro'osals with credit score of $ G above but u'to ++ will be

considered after credit enhancement

Lo"% "1ou% 6'to "+ of the cost of the Tractor, trailer and accessories. The cost

includes the 7egistration charges and insurance 'remium not e=ceeding

7s 1+,###K&. Bank will finance only for those models of tractors which

have com'leted the commercial test from organi;ations vi;. Central

3arm /achinery Training and Testing Institute *C3/TTI Budni

*/adhya 5radesh or 3arm /achinery Training and Testing Institute*3/TTI

S$/ur,0 2y'othecation of the tractor, accessories and im'lements. @oting of

Bank s hy'othecation charge in the 7C Book of the tractor is

com'ulsory in all the cases.

Collateral Security like @SCs, D5s, Banks 3i=ed >e'osits Surrender

value of 8IC 'olicy etc 7 /ortgage of agricultural lands

Ho@ o r$p"0 h$

&o"%

?ithin a ma=imum 'eriod of 9 years, including a grace 'eriod not

e=ceeding 1 months. The installments shall be 'ayable half&yearly K

yearly, coinciding with the harvesting and marketing 'eriod of the cro's

'ro'osed to be grown by a''licantKborrower

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18/56

6.K,+"% /r$', /"r' (KCC)ho "r$ $&,!,2&$

#or h$ &o"%?

Nll farmers&individualsK!oint borrowers who are owner cultivators.

NTenant farmers, ral lessees and Share Cro''ers etc.

NS2(s or !oint 8iability (rou's of farmers including tenant farmers,

share cro''ers etc.Lo"% "1ou%

F$"ur$+

NShort term credit limit is fi=ed for the first year de'ending u'on the

cro's cultivated as 'er 'ro'osed cro''ing 'attern G scale of finance

N 5ost&harvestK household K consum'tion re)uirements

N/aintenance e='enses of farm assets, cro' insurance, 5ersonal

ccident Insurance Scheme *5IS and sset insurance.

N3or every successive years *nd, 0rd, -th, and +th year, the limit will

be ste''ed u' O1#.*short term credit limit sanctioned for +th year

will be about 1+# of the first year limit allowed to farmers.

Page | 18


19/56

NInvestment credit re)uirement of small value in the nature of farm

im'lementsK e)ui'ments etc *like s'rayer, 'lough etc., and re'ayable

within a 'eriod of one year will be included while fi=ing CC limit

*This 'ortion of the credit will not be included for automatic ste' u'

during nd year to +th year but credit re)uirement for this 'ortion in

each year will be reckoned for arriving at the ma=imum drawal limit for the res'ective year.

NThe short term loan limit arrived for the +th year as in *iv 'lus

estimated investment loan re)uirement as in *v *highest among the five

years above will be the /a=imum 5ermissible 8imit */58 and

sanctioned as the isan Credit Card 8imit.

NShort term loan limit assessed for the first year or for the nd to +th

year 'lus the estimated investment credit limit re)uired, as in *iv and

*v above, will be the /a=imum >rawal 8imit */>8 allowed in the

account, for the 'articular year.

NCC borrowers shall be issued an T/ cum >ebit card *State Bank

isan Card, to enable them to withdraw from CC accounts from

T/s and 5oS terminals.

NCC will be in the nature of revolving account. Credit balance in the

account, if any, to fetch interest at Savings bank rate.

N5rocessing charges waived for CC limit u' to 7s.0 lacs.

NCollateral security is waived for

". limit of u' to 7s.1 lac

2. limit u' to 7s.0 lacs for loans with tie&u' arrangement for recovery.

NCC accounts should be renewed annually, well before the above due

dates, every year to continue the limit during the CC validity 'eriod of

+ years. Branches shall, therefore, ensure to obtain revival letters before

e='iry of 0 years wherever a''licable, as 'er the 8imitation ct.

N3or the 'ur'ose of renewal, branches should obtain a sim'le

declaration as 'er the e=tant guidelines *about cro's raisedK 'ro'osed toraise from the borrowers. The assessment of revised />8 re)uirement

of the CC borrower will be made based on 'ro'osed cro''ing 'attern

and area declared by him.

N


20/56

SBI Ho1$ &o"%

The most favored 2ome 8oan 'rovider&SBI Bank offers 2ome 8oan with attractive interest

rates along with 8atest Schemes and Benefits. SBI also 'rovides a 2ousing loan with

different schemes & SBI


21/56

SBI Yu7" Ho1$ Lo"%

•

!"is #B$ "o%e loan is tailored es&ecially for individ'als ("o are yo'ngand generally taking loan for t"eir )rst "o%e*• !"e age eligi+ility is +et(een 21,45 years*

• !"is loan grants an a%o'nt ("ic" is 2- over and a+ove t"e reg'larloan a%o'nt*

• !"is "o%e loan is ideal for fres" &rofessionals and govern%ente%&loyees*

• .nder t"is sc"e%e t"e "o%e loan f'll re&ay%ent starts only after 36%ont" fro% t"e date of availing t"e loan* For t"e )rst 36 %ont"s onlyinterest needs to +e re&aid*

F$"ur$+<

•


22/56

• 8oan Tenure F 6' to 1+ years

• 5re&closure Charges & @il

• Interest 7ate F 3loating 1#.1+

SBI PAL

!"is is a Pre-Approved $ome %oan fro% #tate Bank of $ndia* !"is loandoes not de&end '&on t"e &ro&erty to +e +o'g"t* #B$ grants its c'sto%erst"e freedo% to avail t"e loan a%o'nt +efore deciding '&on t"e &ro&erty*

!"is gives c'sto%ers t"e needed con)dence to negotiate +oldly (it"+'ilderssellers regarding t"e &rice of t"e &ro&erty*

F$"ur$+<

• e'ends on the annual income of the a''licant

• Tenure F 5re&''roved 8etter of arrangement is valid for a 'eriod of - months

• /in 8oan mount F 1# 8acs

• /a= 8oan mount F @o u''er limit

• 5re&closure Charges & @il

• Interest 7ate F 3loating 1#.1+

H$r Gh"r Ho1$ Lo"%<

!"is is a "o%e loan sc"e%e designed espeiall! for womenappliants. (o%an needs to +e t"e sole a&&licant or t"e &ri%arya&&licant for t"is ty&e of "o%e loan* lso t"e &ro&erty for ("ic" "o%e loanis +eing taken s"o'ld +e in t"e na%e of t"e (o%an a&&licant or s"e s"o'ld+e t"e &ri%ary o(ner in case it of oint o(ners"i&* !"is "o%e loan sc"e%e+y #B$ ai%s at ena+ling (o%en to o(n &ro&erty and carries a socialo+ligation in line (it" t"e e%&o(er%ent of (o%en*

F$"ur$+<

• 8oan Tenure F 0# years

• Interest 7ate F 9."+

• 5re&5ayment Charges & @il

Page | 22


23/56

SBI Ho1$ Lo"% I%$r$+ R"$+Up'"$' o% *5 Au! *36

SBI Ho1$ Lo"% D$",&+

Interest

Rate

(&loating)

&or women - '.*

&or others - '.+*

Proessing &ees

.#+* of %A a Proessing &ees of /

%oan

Tenure0 !ears

Pre-

losure

1harges

Nil

Pre-

Pa!ment

1harges

Nil

2uarantor

Re3uirem

ent

o 'arantor e'ired

Page | 23


24/56

4ouAre 'robably eligible for an SBI 2ome 8oan if you are

t least 1" years old

8ess than $# years old

Salaried K Self&em'loyed with regular income


25/56

ge 1" years to #years 1 years to #years

Income 7s.1,#,### *'.a. 7s.,##,### *'.a.

8oan mount

ffered

+,##,### & 1,##,##### +,##,### & ,##,#####

Tenure +years&#years +years&#years

Current


26/56

C"r Lo"%+ #ro1 SBI

SBI is a 'ioneer in 'roviding a corsage of attributes and features with itAs banking 'roducts.

3or car loans, it has e=celed the e='ectations and has 'rovided a new car loan scheme with an

offer of an


27/56

You’re probably eligible for an SBI

Car Loan if you are04

A &$"+ * 0$"r+ o&'

L$++ h"% 46 0$"r+ o&'

S"&"r,$' or +$$1p&o0$'@,h r$!u&"r ,%/o1$

E"r% 1or$ h"% h$ 1,%,1u1,%/o1$ r$u,r$'

Page | 27


28/56

Documentation needed to apply for

an SBI Car Loan

• 1. Residence proof

• 2. Photo ID and age proof

• 3. Signed application form with photograph

• 4. Last 6 months bank statement

• 5. Documentation for salaried applicants:

o Last 3 months salary – slips

o Form 16 or Income Tax Returns

• 6. Documentation for self-employed applicants:

Page | 28


29/56

o Last 3 years Income Tax Returns with

computation of Income

o Last 3 years CA Certified / Audited Balance

Sheet and Profit & Loss Account

SBI Car Loan Interest RatesUpdated on 04 Sep 2015

SBI Car Loan Details

$nterest ate :ont"ly red'cing

+alance;

"arges il

?oan !en're 1 year to 7 years

$nterest ate :ont"ly red'cing

+alance;

"arges il

?oan !en're 1 year to 7 years

Page | 29


30/56

LITERATURE REVIE>

A//or',%! o B0 S,$! L"r++o% ,Ln organi;ation, usually a cor'oration, chartered by a

state or federal government, which does most or all of the followingH receives demand

de'osits and time de'osits, honors instruments drawn on them, and 'ays interest on themJ

discounts notes, makes loans, and invests in securitiesJ collects checks, drafts, and

notes Jcertifies de'ositor:s checksJ and issues drafts and cashier:s checks. ?hen a bank makes an advance in lum'&sum against some security it is called a loan. 2ere, a s'ecifiedamount is sanctioned by the bank to the customers. The loan amount so sanctioned is 'aid to

the borrower either in cash or by credit to his account. certain amount of interest has to be

'aid by the borrower for the loan that has to be borrowed. loan can be re'aid in lum'&sum or

in installments.

Commercial banks generally 'rovide short term loans u' to one year for meeting the working

ca'ital re)uirements. But these days, term loans e=ceeding one year are also 'rovided by

banks. The term loans may be either medium term or long term loansM

Page | 3

https://www.goodreads.com/author/show/706255.Stieg_Larssonhttps://www.goodreads.com/author/show/706255.Stieg_Larsson


31/56

OB;ECTIVE

s the student of /B and there after having o''ortunity to work with such State bank of

India encom'asses that I learned e=actly these whole 'rocess of the loan a''roval and itsfinal disbursement to the res'ective dealer takes 'lace. It is delight me toward this study

because of the following.

• To understand the 'rocess of loan a''roval.

• To study the interest rate on different loan 'roducts of SBI, >ena Bank, @>C Bank,

=is bank.

• To find out customersA 'reference for selecting a 'articular bank for obtaining

financial services.

• To find out the customersA 'reference of ty'e of interest rates.

• To find out the market ca'tured by various bank in different loan segment.

Page | 31


32/56

NEED SCOPE SIGNIFICANCE OUR STUDY

The geogra'hical sco'e of the study is restricted to Dinchur branch only with sam'le si;e of

1## 'eo'le.

ll the analysis and suggestions are based on the analysis of the both 'rimary and secondary

data.

There fore the sco'e of the study revolves around the following as'ectsH&

• Consumer 'erce'tion towards dvance 5roduct

• Consumer awareness about dvance 5roduct scheme and its benefit.

• ware the Bank about the customer 'roblems, es'ecially in case of automobile sector.

Page | 32


33/56

RESEARCH METHODOLOGY

.

R$+$"r/h D$+,!%esign

• Sam'le si;e calculation and %ustification

• >evelo'ment of )uestionnaire

D"" /o&&$/,o% 1$ho'+4

) Pr,1"r0 '""

*) S$/o%'"r0 '"".

. Pr,1"r0 D""<

Interview

bservation

#. S$/o%'"r0 D""4

fficial statistics

?eb information

2istorical data and information

Te=tbooks on financial management FI./.5andey

5ersonnel /anual of Sbi Dinchur branch.

Page | 33


34/56

Too&+ $/h%,u$+

) Sur7$0

*) T,1$ +$r,$+ "%"&0+,+

SURVEY

In this my 'ro%ect I am using survey because of I want to find out better rate of interest for

agri loan, car loan, home loan. I am using different techni)ue G method like customer

interview, 'ros'ectus, different clients from different banks market view etc.

The survey is a method for collecting information or data as re'orted by individuals. Surveys

are )uestionnaires *or a series of )uestions that are administered to research 'artici'ants whoanswer the )uestions themselves. Since the 'artici'ants are 'roviding the information, it is

referred to as self&re'ort data

Survey research is one of the most im'ortant areas of measurement in a''lied social research.

The broad area of survey research encom'asses any measurement 'rocedures that involve

asking )uestions of res'ondents. survey can be anything form a short 'a'er&and&'encil

feedback form to an intensive one&on&one in&de'th interview

T,1$ +$r,$+ "%"&0+,+

In this my 'ro%ect I used time series analysis for determining 'ast situation of the bank and to

getting history of market for 'articular banks.


35/56

are often re)uired. ?ith the s'eed and ca'acity of modern com'uters, in many situations it is

'referable to ado't a methodology that sim'lifies the means of conducting an analysis even if

it is at the e='ense of com'utation time. 6sing such an a''roach, we are able to 'rovide

sim'lified and effective methodologies for com'le= sub%ects in time series analysis and

forecasting

S"1p&,%! p&"%+

D$#,%,,o%


36/56

Page | 36


37/56

DATA ANALYSIS DATA INTERPRETATION

) Ho@ 1"%0 ,%$r$+ r"$+ /h"r!$' 20 7"r,ou+ 2"%-?

BANK NAME AGRI LOAN CAR LOAN HOME LOAN

SBI 7*- 1*5- 9*85-

DENA 7*- 1*5- 1*25-

AXIS 14*85- 12*5- 12*5-

ANALYSIS8 SBI charged for agri cro' loan,1#.#+ for car loan G9."+ in home loan

> ?C

DC:A ?C

INT5PR5TATION, Fro1 h$ "2o7$ '"" "%"&0+,+ @$ /"% #,%' h" SBI "%' DENA

/h"r!$' &o@$r ,%$r$+ r"$+ #or "!r, /"r &o"% h"% h$ AXIS 2"%- SBI /h"r!$' h$

,%$r$+ o% ho1$ &o"% &o@$r h"% DENA AXIS 2"%-.

Page | 37


38/56

*) Fro1 @h,/h o# h$ #o&&o@,%! 2"%-+ 'o 0ou pr$#$r o o2",% #,%"%/,"&

+$r7,/$+?

A) SBI B) DENA BANK C) NDC D) AXIS BANK

57TIC687 @. 3 5


39/56

I%$rpr$",o%8 Fro1 h$ "2o7$ '"" "%"&0+,+ @$ /"% #,%' h" 1o+ o# h$ p$r+o%+"r$ "-,%! up SBI V,%/hur 2"%- &o"% 2$/"u+$ h$0 "r$ +",+#,$' @,h h$ +$r7,/$ !,7$%

r"$ o# ,%$r$+ "%' u,/- ',+2ur+$1$%

=) >h,/h 0p$ o# ,%$r$+ 2orro@$r+ pr$#$r?

57TIC687 @. 3

B77?


40/56

I%$rpr$",o%8 #ro1 h$ "2o7$ '"" "%"&0+,+ @$ /"% #,%' h" p$op&$ @h$%

h$ "-$ &o"% #,$' ,%$r$+ h"7$ !o "% u%'$r+"%',%! ho@ 1u/h h$0 h"7$!o o p"0 ,% &o"% p$r,o'.

) F$$'2"/- "2ou SBI V,%/hur 2r"%/h?

Sr no @o. of 'eo'les

interview

@o. of 'eo'le feedback

'ositi

ve

negati

ve

@o

feedback

gri loan 1+ 1# #+ ##

Car loan 1+ 1# #0 #

2ome loan 1# #+ # #0

Total -# + 1# #+

Page | 4


41/56

4

25

15

I%$rpr$",o%8 Fro1 h$ "2o7$ '"" "%"&0+,+ @$ /"% #,%' h" 4=: p$op&$+

h"+ !,7$ po+,,7$ #$$'2"/- h$0 "r$ +",+#,$' @,h h$ +$r7,/$ !,7$% r"$ o# ,%$r$+ u,/- ',+2ur+$1$%.

Page | 41


42/56

6) ho@ 'o 0ou h,%- h$ pro/$'ur$+ o# "!r, &o"% /"r &o"% ho1$ &o"% ,+?

5articulars @o of 'erson

interview

@o of 'ersonAs o'inion

convenien

t

lengthy

gri loan +# 0# #

Car loan 1+ 1# #+

2ome loan # 1- #$

Total "+ +- 01

gri loan >ar loan Do%e loan !otal

1

2

3

4

5

6

7

8

9

5

152

85

3

114

54

2

5 6

31

o of &erson intervie(

o of &ersons o&inion

convenient

o of &ersons o&inionlengt"y

Page | 42


43/56

I%$rpr$",o%8 Fro1 h$ "2o7$ '"" "%"&0+,+ @$ /"% #,%' h" 4=.6*:

2orro@$r "!r$$ h$ &o"% pro/$'ur$+ ,+ /o%7$%,$% ,% 'o/u1$%",o% "%'

$&,!,2,&,0 /r,$r," ,% /o1p"r,+o%+ @,h oh$r &o"%.

4) Ho@ 1u/h 1"r-$ /"pur$' 20 SBI 7,%/hur 2r"%/h AGRI &o"% ,% h$

0$"r *3 o *3 ?

Bank name SBI >


44/56

#B$ @A @>

1

2

3

4

5

67

8

9

1

1 1 1

85

72

56

?oan a%t

:arket ca&t'red

I%$rpr$",o%& Fro1 h$ "2o7$ '"" "%"&0+,+ @$ /"% #,%' h" ,% h$ 0$"r+

o# *38 SBI V,%/hur 2r"%/h "!r, &o"% /"pur$' 1or$ 1"r-$ "+/o1p"r$' o h$ oh$r+ 2"%-+ 2$/"u+$ ,% h$ 0$"r *38 h$0 pro7,'$ h$

1or$ o"& "!r, &o"% "1ou% ,% /o1p"r,+o% @,h oh$r 2"%-+.

) Ho@ 1u/h 1"r-$ /"pur$' 20 SBI 7,%/hur 2r"%/h Ho1$ &o"% ,% h$

0$"r *3 o *3 ?

Page | 44


45/56

Bank name SBI >C IS

8oan amt 1###### 1###### 1###### 1######

/arket ca'tured "+##### ++##### 0##### +#####

A%"&0+,+8 SBI Dinchur branch ca'tured 2ome loan market around "+ lakh,

where as >ena, @>C G a=is bank ca'tured agri loan market around ++ lakh,0

lakh to+ lakh res'ectively.

#B$ @A @> $#

2

4

6

8

1

12

1111

85

72

56

78

?oan a%t

:arket ca&t'red

I%$rpr$",o%8 Fro1 h$ "2o7$ '"" "%"&0+,+ @$ /"% #,%' h" ,% h$ 0$"r+

o# *38 SBI V,%/hur 2r"%/h ho1$ &o"% /"pur$' 1or$ 1"r-$ "+

/o1p"r$' o h$ oh$r+ 2"%-+ 2$/"u+$ ,% h$ 0$"r *38 h$0 pro7,'$ h$

1or$ o"& ho1$ &o"% "1ou% ,% /o1p"r,+o% @,h oh$r 2"%-+

Page | 45


46/56

5) Ho@ 1u/h 1"r-$ /"pur$' 20 SBI 7,%/hur 2r"%/h C"r &o"% ,% h$ 0$"r

*3 o *3 ?

Bank name SBI >C IS Ba%a%

finance

8oan amt 1####### 1####### 1####### 1####### 1#######

/arket

ca'tured

"+##### ##### +$##### "##### ######

1

2

3

4

56

7

8

9

1

?oan a%t

:arket ca&t'red

A%"&0+,+& SBI

Dinchur branch ca'tured Car loan market around "+ lakh, where as >ena, @>C,

ba%a% G a=is bank ca'tured Car loan market around lakh,+$ lakh # lakh to"

lakh res'ectively.

Page | 46


47/56

I%$rpr$",o%8 Fro1 h$ "2o7$ '"" "%"&0+,+ @$ /"% #,%' h" ,% h$ 0$"r+

o# *38 SBI V,%/hur 2r"%/h C"r &o"% /"pur$' 1or$ 1"r-$ "+

/o1p"r$' o h$ oh$r+ 2"%-+ 2$/"u+$ ,% h$ 0$"r *38 h$0 pro7,'$ h$

1or$ o"& C"r &o"% "1ou% ,% /o1p"r,+o% @,h oh$r 2"%-+

Page | 47


48/56

LOAN PROCESS

Page | 48


49/56

CONTRIBUTION TO THE ORGANIJATION

• ?ith the hel' of this 'ro%ect SBI was able to analy;e the bad loans amount discussions were

done as to how to reduce them

• ?ith the hel' of this 'ro%ect SBI was able to analy;e loan 'olicy and loan sanction 'rocedure

is too much lengthly so it should be made fle=ible and easy.

• ?ith the hel' of this 'ro%ect SBI was able to analy;e the credit 'ro'osal evolution 'rocess is

lengthly, therefore valuable clients are lost.

• 6'dating the records of loan schemes and u'date customer record

• 2andling client through communication

Page | 49


50/56


51/56

CONCLUSTION

?hile making the 'ro%ect in State bank of india, Dinchur, @asik on agricultural, home loanand car loans there were so many useful and im'ortant things come to an observation and it

was a very 'ractical learning 'rocess.

@ow days the situation of agriculture and allied sector sin india is not stable and shares in the

(>5 of agriculture sector is 1- which reducing continuously year on year it has to be

increased for economical develo'ment and also im'rovement of Indian farmers basically

some new schemes should bring by the government and rates of agricultural 'roducts should

increased.

?hile 'ro%ect observe banking structure, working 'rocess schedule of banking and currentsituation the banking and their com'etitors are strong and net 'rofit also high mainly of SBI.

Im'rove efficiency of working should increased and concentrate on recovery of loan.

Situation of agricultural in india is 'oor focused on our develo'ment is im'ortant for

agricultural develo'ment.

There werevarious ty'es of agricultural loan and various schemes of agricultural

develo'ment rates of interest for different ty'es of loans in State bank of India. lasalgaon

@B7> 'lays vital role in the agricultural develo'ment for rural develo'ment they 'rovide

loans to the nationali;e bank on low rate of interest and bank and distribution charge andother e='enses than they distribution to the farmers

7ecovery 'rocess was low therefore net 'rofit reduced branch should focus on it and

invovates same new ideas for recovery of loans.

?hat we really achieved in the 'ro%ect re'ort as follows.

Successfully and without any barriers com'letion of 'ro%ect, we learn some things new like

banking, loans and agricultural loans, learn about tackling techni)ues in the critical.

Situation and im'rovement in communication skill and how to communicate with different

kind of 'eo'le, im'rovement self confidence, habit of regularity and disci'line.

3rom all the above conclusions that loans are the 'rocess of borrowing and lending it assist

both lender benefited by interest and borrower can use loans for growth and develo'ment of

agricultural sector for cultivation, 'urchase )uality seeds, fencing of farms they can use loans

as 'er their re)uirement.

Page | 51


52/56

SUGGESTIONS

lthough the 'erformance of the bank is satisfactory some 'oints if taken in to account can

faster their growth.

• The bank should 'lan to introduce new schemes for attracting new customers and

satisfying the 'resent ones

• The bank should im'rove the customer services of the bank to a better e=tent.

• 5ublic sector banks should s'eed u' their 'erformance regarding 'riority sector lending.s their 'erformance in terms of 'riority sector, agricultural, small scale industrial and

other 'riority sectors advances was slower than that of 'rivate sector banks.

• 5ro'er awareness should be given to 'ublic regarding the schemes of 'riority sector by

7BI.

BIBLIOGRAPHY

Page | 52


53/56

>$2+,$

• htt'HKKwww.statebankofindia.co.in

• www.moneycontrol.com

• www.google.co.in

• www.farmer.gov.in

• www.wiki'edia.org

Boo-+

@amesh . /alhotra F 7esearch /ethodology

3inancial /anagement F 'rasanna Chandra

7esearch /ethodology F C.7.othari

N$@+ p"p$r


54/56

u$+,o% A+-$' B0 Co%+u1$r+

1. ?hat ty'eAs loan are you 'roviding for griculture

. ?hat is the rates interest of various ty'es of griculture,home and car loan

0. ?hat is the 'rocedure for loans-. ?hat kind of documents should be submitted

+. ?hat is the recovery 'rocess

u$+,o%+ A+-$' o Co%+u1$r+

1. ?hat ty'e of loan you want

. ?hat ty'e of documents you have

0. ?hat is your villageKcity name

-. ?hat is your borrowing ca'acity of loan+. >o you have account in this branch

S"$ B"%- O# I%',"

Page | 54


55/56

BALANCE SHEET "+ o% =+ 1"r/h *36

S/h$'u&$

No.

A+o%

=(+M"r/h

*3(6

A+o%

=(+M"

r/h

CAPITALANDLIABILITIES

Ca'ital 1 -$,+, -

7eserves G Sur'lus 1$#$-#,9$, 1-$$

/inority Interest +-9,11, -9

>e'osits 0 #+9$#," 1"0""

Borrowings - --$$0,-$, 0

ther 8iabilities and 5rovisions + 0+$#1,1#, 1"1$TOTAL *H33((3C3* *=)4B

ASSETS

Cash and Balances with 7eserve Bank of India $ 1--",+-, 11-#

Balance with bank sand money at call G short notice $-99,#, +0#

Investments " $9+$91,+, +9-

,dvances 9 1$911,00 1+"

3i=ed ,ssets 1# 109,9, 1#+

ther ,ssets 11 91-1,#, $1#

TOTAL *H33((3C3* *=)4B

Contingent 8iabilities 1 119#00",$9 11+

Bills for Collection 1#+9#,+1, 9#1

Significant ccounting 5olicies 1

@otes to ,ccounts 1"

Pro#, "%' Lo++ "/

Page | 55


56/56

For h$ 0$"r $%'$' o% =+ 1"r/h *36

S/h$'u&$No

.

Y$"r $%'$'

=.3=.*36

(Curr$% Y$"r)U

Y$"r $%'$'

=.3=.*3

(Pr$7,ou+ Y$"r)UI. INCOME

Interest earned 10 1+09,#,- 10$0+#,"#,09

ther Income 1- ++,"9,$ 1"++,91,$-

TOTAL *445 63=*3=

II. EXPENDITURE

Interest e='ended 1+ 90"1,",0$ "#$",$0,+

'erating e='enses 1$ 0"$,$-,1- 0++,"+,10

5rovisions and contingencies +"11,9,9" 11",#$,-"

TOTAL 45=5 3*654

III. PROFIT

@et 5rofit for the year 101#1,+,# 1#"91,1,1

5rofit brought forward 0,-" 00,90

TOTAL =3545 3563

IV. APPROPRIATIONS

Transfer to Statutory 7eserve -#9,#,9" 0009,$1,91

Transfer to Ca'ital 7eserve 1#+,+#,-- 1$,+,0#

Transfer to 7evenue and other 7eserves +""9,#+,+$ -9$,$0,+#

>ividend for the 'revious year 'aid during the year

includin

& 1,-+

>ividend for the current year

*i Interim >ividend & 1119,"+,9$

*ii 3inal >ividend 5ro'osed $-",1," 1119,"+,9$

Ta= on >ividend for the Current year -9,+,9- 9",--,+-

Balance carried over to Balance Sheet 0,-" 0,-"

TOTAL =3545 3563

Basic

final project sbi product

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