research report of gautam

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Introduction

History of Banking in India:

Without a sound and effective banking system in India it cannot have a healthy

economy. The banking system of India should not only be hassle free but it should be

able to meet new challenges posed by the technology and any other external and internal

factors.

For the past three decades India's banking system has several outstanding achievements

to its credit. The most striking is its extensive reach. It is no longer confined to only

metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even

to the remote corners of the country. This is one of the main reasons of India's growth

process.The government's regular policy for Indian bank since 1969 has paid rich dividends with

the nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a

draft or for withdrawing his own money. Today, he has a choice. Gone are days when the

most efficient bank transferred money from one branch to other in two days. Now it is

simple as instant messaging or dial a pizza. Money have become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till

today, the journey of Indian Banking System can be segregated into three distinct phases.

They are as mentioned below:-

Early phase from 1786to1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

New phase of Indian Banking System with the advent of Indian Financial & Banking

Sector Reforms after1991.

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To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and

PhaseIII.

PhaseI.

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan

and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of

Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency

Banks.

These three banks were amalgamated in 1920 and Imperial Bank of India was established

which started as private shareholders banks mostly Europeans shareholders

.In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab

National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and

1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank,

and Bank of Mysore were setup. Reserve Bank of India came in1935.

During the first phase the growth was very slow and banks also experienced periodic

failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To

streamline the functioning and activities of commercial banks, the Government of India

came up with The Banking Companies Act, 1949 which was later changed to Banking

Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank

of India was vested with extensive powers for the supervision of banking in India as the

Central Banking Authority.

During those days public has lesser confidence in the banks. As an aftermath deposit

mobilization was slow. Abreast of it the savings bank facility provided by the Postal

department was comparatively safer. Moreover, funds were largely given to traders.

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PhaseII

Government took major steps in this Indian Banking Sector Reform after independence.

In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a

large scale especially in rural and semi-urban areas. It formed State Bank of India to act

as the principal agent of RBI and to handle banking transactions of the Union and State

Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th

July, 1969, major process of nationalization was carried out. It was the effort of the then

Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country

was nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in 1980

with seven more banks. This step brought 80% of the banking segment in India under

Government ownership.

The following are the steps taken by the Government of India to Regulate Banking

Institutions in the Country:

1949:-Enactment of Banking Regulation Act.

1955:-Nationalization of State Bank of India.

1959:-Nationalization of SBI subsidiaries.

1961:-Insurance cover extended to deposits.

1969:-Nationalization of 14 major banks.

1971:-Creation of credit guarantee corporation

1975:-Creation of regional rural banks.

1980:- Nationalization of seven banks with deposits over200 core.

After the nationalization of banks, the branches of the public sector bank India rose to

approximately 800% in deposits and advances took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and

immense confidence about the sustainability of these institutions.

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PhaseIII

This phase has introduced many more products and facilities in the banking sector in its

reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was

set up by his name which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put

to give a satisfactory service to customers. Phone banking and net banking is introduced.

The entire system became more convenient and swift. Time is given more importance

than money. The financial system of India has shown a great deal of resilience. It is

sheltered from any crisis triggered by any external macroeconomics shock as other East

Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign

reserves are high, the capital account is not yet fully convertible, and banks and their

customers have limited foreign exchange exposure.

Nationalization Of Banks In India

The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then

prime minister. It nationalized 14 banks then. These banks were mostly owned by

businessmen and even managed by them

Central Bank of India

Bank of Maharashtra

Dena Bank

Punjab National Bank

Syndicate Bank

Canara Bank

Indian Bank

Indian Overseas Bank Bank of Baroda

Union Bank

Allahabad Bank

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United Bank of India

UCO Bank

Bank of India

Be for the steps of nationalization of Indian banks, only State Bank of India (SBI) wasnationalized. It took place in July 1955 under the SBI Act of 1955. Nationalization of

Seven State Banks of India (formed subsidiary ) took place on 19th July, 1960.

The State Bank of India is India's largest commercial bank and is ranked one of the top

five banks worldwide. It serves 90 million customers through a network of 9,000

branches and it offers -- either directly or through subsidiaries -- a wide range of banking

services.

The second phase of nationalization of Indian banks took place in the year 1980. Seven

more banks were nationalized with deposits over 200 crores. Till this year, approximately

80% of the banking segment in India were under Government ownership.

After the nationalization of banks in India, the branches of the public sector banks rose to

approximately 800% in deposits and advances took a huge jump by 11,000%.

1955: Nationalisation of State Bank of India.

1959: Nationalisation of SBI subsidiaries.

1969: Nationalisation of 14 major banks.

1980: Nationalisation of seven banks with deposits over 200 crores.

Scheduled Commercial Banks In India

The commercial banking structure in India consists of:

Scheduled Commercial Banks in India

Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the

Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only

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those banks in this schedule which satisfy the criteria laid down vide section 42 (6)

(a)of the Act.

As on 30th June, 1999, there were 300 scheduled banks in India having a total

network of 64,918 branches. The scheduled commercial banks in India comprise ofState bank of India and its associates (, nationalized banks (19), foreign banks (45),

private sector banks (32), co-operative banks and regional rural banks.

"Scheduled banks in India" means the State Bank of India constituted under the State

Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank

of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank

constituted under section 3 of the Banking Companies (Acquisition and Transfer of

Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies

(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank

being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934

(2 of 1934),but does not include a co-operative bank".

"Non-scheduled bank in India" means a banking company as defined in clause (c) of

section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled

bank".

The following are the Scheduled Banks in India (Public Sector):

State Bank of India

State Bank of Bikaner and Jaipur

State Bank of Hyderabad

State Bank of Indore

State Bank of Mysore

State Bank of Patiala

State Bank of Saurashtra

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Andhra Bank

Allahabad Bank

Bank of Maharashtra

Central Bank of India

Corporation Bank

Dena Bank

Indian Overseas Bank

Indian Bank

Oriental Bank of Commerce

Punjab National Bank

Punjab and Sind Bank

Syndicate Bank

Union Bank of India

United Bank of India

UCO Bank

The following are the Scheduled Banks in India (Private Sector):

Vysya Bank Ltd

Axis Bank Ltd

Indusind Bank Ltd

ICICI Banking Corporation Bank Ltd

Global Trust Bank Ltd

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Role of Banking

Banks provide funds for business as well as personal needs of individuals. They

play a significant role in the economy of a nation. Let us know about the role of

banking.

It encourages savings habit amongst people and thereby makes funds available for

productive use.

It acts as an intermediary between people having surplus money and those

requiring money for various business activities.

It facilitates business transactions through receipts and payments by cheques

instead of Currency.

It provides loans and advances to businessmen for short term and long-term

purposes.

It also facilitates import export transactions.

It helps in national development by providing credit to farmers, small-scale

industries and self- employed people as well as to large business houses which

lead to balanced economic development in the country .

It helps in raising the standard of living of people in general by providing loans

for purchase of consumer durable goods, houses, automobiles, etc.

BANK MARKETING

We define bank marketing as follows: Bank marketing is the aggregate of functions,

directed at providing services to satisfy customers financial (and other related) needs and

wants, more effectively and efficiently that the competitors keeping in view the

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organizational objectives of the bank. Bank marketing activity. This aggregate of

functions is the sum total of all individual activities consisting of an integrated effort to

discover, create, arouse and satisfy customer needs. This means, without exception, that

each individual working in the bank is a marketing person who contributes to the total

satisfaction to customers and the bank should ultimately develop customer orientation

among all the personnel of the bank. Different banks offer different benefits by offering

various schemes which can take care of the wants of the customers.

Marketing helps in achieving the organizational objectives of the bank. Indian banks

have duel organizational objective commercial objective to make profit and social

objective which is a developmental role, particularly in the rural area.

Marketing concept is essentially about the following few thing which contribute towards

banks success:

1) The bank cannot exist without the customers.

2) The purpose of the bank is to create, win, and keep a customer.

3) The customer is and should be the central focus of everything the banks does.

4) It is also a way of organizing the bank. The starting point for organizational

design should be the customer and the bank should ensure that the services are

performed and delivered in the most effective way. Service facilities also should

be designed for customers convenience.

5) Ultimate aim of a bank is to deliver total satisfaction to the customer.

6) Customer satisfaction is affected by the performance of all the personal of the

bank.

All the techniques and strategies of marketing are used so that ultimately they induce the

people to do business with a particular bank. Marketing is an organizational philosophy.

This philosophy demands the satisfaction of customers needs as the pre-requisite for the

existence and survival of the bank. The first and most important step in applying themarketing concept is to have a whole hearted commitment to customer orientation by all

the employees. Marketing is an attitude of mind. This means that the central focus of all

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the activities of a bank is customer. Marketing is not a separate function for banks. The

marketing function in Indian Bank is required to be integrated with operation.

Marketing is much more than just advertising and promotion; it is a basic part of total

business operation. What is required for the bank is the market orientation and customerconsciousness among all the personal of the bank. For developing marketing philosophy

and marketing culture, a bank may require a marketing coordinator or integrator at the

head office reporting directly to the Chief Executive for effective coordination of

different functions, such as marketed research, training, public relations, advertising, and

business development, to ensure customer satisfaction. The Executive Director is the

most suitable person to do this coordination work effectively in the Indian public sector

banks, though ultimately the Chief Executive is responsible for the total marketing

function. Hence, the total marketing function involves the following:

a) Market research i.e. identification of customers financial needs and wants and

forecasting and researching future financial market

needs and competitors activities.

b) Product Development i.e. appropriate products to meet consumers financial

needs.

c) Pricing of the service i.e., promotional activities and distribution system in

accordance with the guidelines and rules of the

Reserve Bank of India and at the same time looking

for opportunities to satisfy the customers better.

d) Developing market i.e., marketing culture among all the customer-

consciousness Personnel of the bank through

training.

Thus, it is important to recognize the fundamentally different functions that bank

marketing has to perform. Since the banks have to attract deposits and attract users of

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funds and other services, marketing problems are more complex in banks than in other

commercial concerns.

INCREASING IMPORTANCE OF MARKETING IN BANKING

INDUSTRY

The various other factors which have led to the increasing importance of marketing in the

banking industry are categorized as follows:

Government Initiatives

The Indian economy embarked on the process of economic reform and various policy

measures initiated by the government resulted in the increasing competition in the

banking industry, thereby highlighting the importance of effective marketing. The

Narasimhan Committee Report evidence of the Governments desire to re-regulate the

banking industry so as to encourage efficiency through competition. The Government

initiatives include:

Deregulation of Interest Rates

The bank may reduce their Minimum Lending Rates so as to attract customers

(individual and corporate). Such reduction in lending rates reduce the spread between the

deposit rates and lending rates, i.e. the banks margins would decline and they would have

to increase their volumes or provide attractive services so as to maintain profits. This

calls for bank marketing.

Increasing Emphasis on Bank Profitability:

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With the Narasimhan Committee Report, banks have been directed to improve their

efficiency, productivity and profitability. Banks are required to be self-sufficient. In fact,

the report has adopted the BIS standards of capital adequacy (though in a phased

manner).

Foreign Banks

Foreign banks offer stiff competition to the Indian Banks and with their superior services

and technology offer them a competitive advantage. Thus Indian Banks have to

effectively apply marketing concepts to attract customers.

Entry of New Private Banks

In the early 90s new competition emerged in the form of new Private Banks, who

brought along with them a high technology-based banking matching with International

Standards and have made a significant dent in the banking business by capturing

substantial share in the profits of the banking industry.

Reduction of Statutory Liquidity Ratio:

With the Governments aim of reducing the SLR to 25 percent, the banks will have

surplus funds for which they will have to attract users.

Social Environment

Increasing Urbanization, Education and Awareness: The higher literacy level,

migration to urban areas and higher awareness due to the boom in the mass media have

important implications for the retail banker. He needs to be conscious of the fact the

increasing proportion of people are aware of financial service and are, therefore

demanding and expecting higher quality services.

Increasing Urbanization, Education and Awareness: The higher literacy level,migration to urban areas and higher awareness due to the boom in the mass media have

important implications for the retail banker. He needs to be conscious of the fact the

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increasing proportion of people are aware of financial service and are, therefore

demanding and expecting higher quality services.

Decline in Traditional Indian Values (Borrowing as Taboo), Rising Consumerism, Rise

in the Percentage of Working Women.

Technology Development

Modernization of Technology has facilitated the introduction of new banking services as

to attract new customers. An example of this is the Automated Teller Machines or the

facility of Any Time Money. Also in foreign countries, banks are experimenting with

money transmission at Point of sale, e.g., petrol station linked with banking network.

Comparison of Financial performance of State Bank Of Indiaand HDFC Bank

Graph showing income of State Bank Of India and HDFC Bank

Fig 1

Fig 2

Figure 1 shows the income of HDFC Bank and figure 2 shows the income of

State Bank Of India in last 5 years . from the above figure it can be easily

seen that the income of both HDFC Bank and State Bank Of India continues

to increase but at end of march 2010 both the bank earn less amount in

comparison to previous years. HDFC Bank earns only RS 180 crore at endof march 2010 in comparison to 7482.51 crore at end of2009, and SBI earns

RS 9482.29 crore almost half of the income earn in the end of march 2009 ie

18131.04.

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Graph s howing expenses :-

Fig 1

Fig 2Fig 1 shows the expenses of State Bank of India and fig 2 shows the

expenses of HDFC Bank. In the last 5 years it is clearly seen from the

graph that expenses of both the bank increases the reason behind this

is that both the bank income continues to increase as result expenses

also increase. But at the end of march 2010 both the bank expenses

fall down the reason was fall in income of both the bank. HDFC BANK

expenses fall to 523 crore ie from 17557.96 crore to 17034.82 crore

and SBI expenses fall to Rs 9437.47 crore in comparison to 15738.93

in 2009.

Graph showing net profit

Fig 1

Fig 2

Fig 1 shows net profit of State Bank Of India and fig 2 represents HDFC Bank . from

the above graph it can be easily seen that net profit of SBI continues to increase but in

end of march 2010 SBI net profit falls to RS 44.82 crore in comparison to 2392.crore in

end of march 2009. If we talk about HDFC Bank net profit continues to fluctuates since2006 . in 2008 net profit falls to RS 207 crore in comparison to 266 crore in 2007,

similarly in 2010 RS 703.76 crore from RS 862.40 in 2009.

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Graph showing earning per share

Fig 1

Fig 2

Fig 1 shows earning per share of HDFC Bank and fig 2 explains earning per share of SBI. From

the above graph it can be easily seen that HDFC Bank earning per share continues to fluctuates .

At the end of march 2008 earning per share fall to RS 1.98 crore in comparison to 2008 i.e. RS

9.65 crore . in the end of march 2010 earning per share increases to RS 12.65 crore highest

earning per share in last 5 years.SBI earning per share also fluctuates since 2006. In 2009 earning

per share was highest in last 5 years i.e. RS 37.11 crore but at end of march 2010 there was

drastic fall in last 5 years.

Graph showing total profit of both the bank

Fig 1

Fig 2

Fig 1 shows total profit of HDFC BANK and Fig 2 shows total profit OF SBI from the

graph it can be easily seen that total profit of HDFC Bank continues to increase except in

2008 .IN 2010 total profit increased by 1584 crore . Total profit of SBI continues to

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increase since 2006 but there was drastic fall at the end of march 2010 total profit

earned was just RS 44 crore in comparison to 2392 crore in 2009.

Consumer Behavior and Segmentation

Need for segmentation

Philip Kotler has described the dilemma of the seller (especially, a seller dealing with

masses, e.g. banks) as follows:

How the seller determines which buyers characteristics produce the best partitioning of

a particular market? The seller does not want to treat all customers alike nor does he wantto treat them all differently.

Banks deal with individuals, group of persons and corporates, all of whom have their

likes and dislikes. No bank can afford to assess the needs of each and every individual

buyer (actual or potential).

Segmentation of the market into more or less homogenous groups, in terms of their needs

and expectations from the banking industry, provides a solution to this problem.

This involves dividing the market into major market segments, targeting one or more of

this segments, and developing products and marketing programs tailor-made for these

segments.

In the first segmentation, the market is divided from a unitary whole, to groups of buyers

who might require separate products and marketing mix. The marketer typically tries to

identify different segments in the market and develop profiles of resulting market

segments.

The second step is market targeting in which each segments attractiveness is measured

and a target segment is chosen based on tits attractiveness.

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The third step is product positioning which is the act of establishing a viable competitive

position of the firm and its offer in the target segment chosen.

In the process of segmentation, the market can be divided into major segments which are

gross slices of the market, or into smaller specially formed segments, otherwise known asniches. Niche customers have a specific set of needs which the markerter tries to address.

While a market segment attracts several competitors, a niche attracts fewer competitors

and therefore, a company should clearly define its target segment and devise strategies to

target the customer, so that it has a competitive advantage in the segment.

These concepts can be applied in personal banking by an Indian Bank. Traditionally,

Indian Banks have not had any conscious strategy for selecting customers from the

personal banking area, apart from some banks which have a geographic concentration

strategy such as concentrating on a particular region or state. These banks will have to

segment the market on certain basis, and identify market segments or niches which they

want to cater to. For example, a bank like SBI may not be able to cater high income

groups (say, managers, professional, NRIs, etc. who earn above Rs. 4,00,000 p.a. and

who want a higher quality of products / services and who are willing to pay for them), as

the services required by such a profile of customers are entirely different from the kind of

products / services SBI can offer.

Initiation of Segmentation in India

Station Bank of India was the first Indian Bank to adopt the concept of market

segmentation. In 1972, it reorganized itself on the basis of major market segments

dividing customers on the basis of activity and carved out 4 major market segments, viz.

Commercial and Institutional, Small Industries and Small Business Segment,

Agriculture, Personal and Services Banking. The objectives of this scheme were:

Deeper penetration and coverage of market by looking outwards.

Adequate flexibility of organization to accommodate growth and rapid change,

Delegation of work for releasing senior management for more futuristic tasks.

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Criteria for Segmentation

Segmentation in a right fashion makes the ways for profitable marketing. This helps

policy planner in formulating and innovating the policies and at the same time also

simplifies the task of bank professionals while formulating an innovating the strategic

decisions. The following criteria make possible rig segmentation.

An important criterion for market segmentation the economic system in which we find

agricultural sector, industrial sector, services sector, household sector, institutional sector

and rural sector requiring of weightage while segmenting.

Agricultural Sector: In the agricultural sector, there are four category rise since the

needs of all the categories cants be identical.

The mechanization of agriculture, the improved or scientific system of activation, the

help of nature, the magnitude of risk, the availability infrastructural facilities influence

the level of expectations vis--vis the needs and requirements. The banking organization

are supposed to know and under stand the changing requirements of different categories

of farmers.

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Industrial Sector: The banking organizations subserve the interests of the industrial

sector. The large-sized, small-sized co-operative and tiny industries use the services of

banks. The expectations of all the categories cants be uniform.

The banking organizations are supposed to have an indepth knowledge of the changing

needs and requirements of the industrial segment.

Services sector: It is an important sector of the economy where the banking

organizations get profitable business. The two categories of organizations such as profit-

making and not-for-profit making are found important in the very context.

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Some of the women are housewives and therefore they have different need and

requirements whereas some of them are working ladies having different needs and

requirements.

In the profession segments, we find different categories of professions an therefore we

find a change in their needs and requirements.

The technocrats, bureaucrats, corporate executives, intellects, white and blue collar

employees have different needs and requirements and therefore the banking organizations

should know their expectations.

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Some of the organizations are known as cultural organizations, some of them are not for

profit making, some of them are philanthropic and some of them are related to trade and

commerce. The emerging trends in the social transformation process determine the

hierarchy of needs.

Markets segmentation thus simplifies the task of understanding the customers/prospects.

The bank professional find it convenient to formulate and innovate the marketing mix of

world class which simplify the process of excelling competition.

In the Indian perspective where we find agrarian economy contributing substantially to

the transformation of national economy, it is pertinent that the banking organizations

assign due weightage to the rural sector of the economy where we find tremendous

opportunities.

The urbanization is likely to gain the momentum and villages, outskirts of big towns and

cities are to be developed on a priority basis. Almost all the organizations are to get

tremendous opportunities there. The marketing resources if of innovative nature would

make the ways for capitalizing on the same profitably.

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THE MARKETING MIX IN BANKING SECTOR SERVICE

Recently, banks are in a period that they earn money in servicing beyond selling money.

The prestige is get as they offer their services to the masses. Like other services, banking

services are also intangible. Banking services are about the money in different types andattributes like lending, depositing and transferring procedures. These intangible services

are shaped in contracts. The structure of banking services affects the success of

institution in long term. Besides the basic attributes like speed, security and ease in

banking services, the rights like consultancy for services to be compounded are also

preferred.

PRICE

The price which is an important component of marketing mix is named differently in the

base of transaction exchange that it takes place. Banks have to estimate the prices of their

services offered. By performing this, they keep their relations with extant customers and

take new

ones. The prices in banking have names like interest, commission and expenses. Price is

the sole element of marketing variables that create earnings, while others cause

expenditure. While marketing mix elements other than price affect sales volume, price

affect both profit and sales volume directly. Banks should be very careful in determining

their prices and price policies. Because mistakes in pricing cause customers shift toward

the rivals offering likewise services.

DISTRIBUTION

The complexities of banking services are resulted from different kinds of them. The most

important feature of banking is the persuasion of customers benefiting from services.

Most banks services are complex in attribute and when this feature joins the intangibility

characteristics, offerings take also mental intangibility in addition to physical

intangibility. On the other hand, value of service and benefits taken from it mostly

depend on knowledge, capability and participation of customers besides features of

offerings. This is resulted from the fact that production and consumption have non

separable characteristics in those services. Most authors argue that those features of

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banking services makes personal interaction between customer and bank obligatory and

the direct distribution is the sole alternative. Due to this reason, like preceding

applications in recent years, branch offices use traditional method in distribution of

banking services.

PROMOTION

One of the most important elements of marketing mix of services is promotion which is

Consist of personal selling, advertising, public relations, and selling promotional tools.

PERSONAL SELLING

Due to the characteristics of banking services, personal selling is the way that most banks

prefer in expanding selling and use of them. Personal selling occurs in two ways. First

occurs in a way that customer and banker perform interaction face to face at branch

office. In this case, whole personnel, bank employees, chief and office manager, takes

part in selling. Second occurs in a way that customer representatives go to customers

place. Customer representatives are specialist in banks services to be offered and they

shape the relationship between bank and customer.

ADVERTISING

Banks have too many goals which they want to achieve. Those goals are for

accomplishing the objectives as follows in a way that banks develop advertising

campaigns and use media.

1. Conceive customers to examine all kinds of services that banks offer

2.Increase use of services

3. Create well fit image about banks and services.4. Change customers attitudes

5. Introduce services of banks

6. Support personal selling

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7. Emphasize well service

Advertising media and channels that banks prefer are newspaper, magazine, radio, direct

posting and outdoor ads and TV commercials. In the selection of media, target market

should

be determined and the media that reach this target easily and cheaply must be preferred.

Banks should care about following criteria for selection of media.:

1.Which media the target market prefer

2. Characteristics of service

3. Content of message

4.Cost

5. Situation of rivals

PUBLIC RELATIONS

Public relations in banking should provide;

1. Establishing most effective communication system

2. Creating sympathy about relationship between bank and customer

3. Giving broadest information about activities of bank.

It is observed that the banks in Turkey perform their own publications, magazine and

Sponsoring activities.

SELLING PROMOTIONAL TOOLS

Another element of the promotion mixes of banks is improvement of selling. Mostly used

selling improvement tools are layout at selling point, rewarding personnel, seminaries,

special gifts, premiums, contests.

\HISTORY OF STATE BANK OF INDIA

The History of State Bank Of India dates back to the first decade of the nineteenth

century with the setting up of Bank of Calcutta in Calcutta on 2 June 1806.After three

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years it was renamed as Bank Of Bengal (2 January 1809).On 15th April 1840, the Bank

Of Bombay was initiated and on 1st July 1843, the The Bank of Madras was established.

The integration of the three banks resulted in the creation of Imperial Bank of India on

27th January 1921.

Structure and Organization

The Banks Corporate Office is located at Mumbai. Its domestic operational area is

divided into 14 Circles, each with one Local Head Office and a few Zonal and Regional

Offices. The Bank is present not just in the major metropolises of India but has wide

reach in the villages of India. The Bank's top management consists of the Chairman,

group executives for National Banking Group, Corporate Banking Group, International

Banking Group and Associates & Subsidiaries, and four staff functionaries in charge offinance, credit, human resources & technology management and inspection &audit.

Three Strategic Business Units (SBUs) under the Corporate Banking Group have been

set up by SBI to pay attention to big corporate customers. Distinguishing features of the

SBUs are assimilation of operational planning with operations within each SBU, an alert

delivery system with suitable specialist inputs and focused attention on profitability.

The staff and functionaries at various levels have been delegated higher financial powers

to ensure quicker decision making in credit areas and disposal of a large number of credit

proposals at operating units' level. A committee approach has been adopted, both at the

apex and circle levels, for sanction of large advances and loans. Keeping this in mind

Central Office Credit Committee and Circle Credit Committees have been set up to

ultimately ensure faster delivery. Credit and systemic risk processes have thus

accordingly been restructured. Simplified and concise credit appraisal formats have been

designed to ensure improvement in the quality of credit decisions, better quality of assets

and reduction of Non Performing Assets or NPAs.

Transformation in SBI

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The SBI has undergone major transformation in the recent years. The bank has ventured

into new areas of business like Pension Funds, General Insurance, Custodial Services,

Private Mobile Banking, Point Of Sale, Merchant Acquisition, Advisory Services, and

Structured Products etc. The bank foresees tremendous growth potential in all these

areas. The bank has made forays into the rural banking with state of the art technology.

The bank has outlaid an ambitious plan to expand rural banking to 100,000 villages in the

next few years .

The bank has ambitious plans to focus on the high end market to support India's

increasing mid/large Corporate with a wide range of products and services. The bank is

consolidating its global treasury operations and diversifying into structured products and

derivative instruments. At present SBI provides the largest amount of infrastructure debt

and the bank is the largest provider of commercial borrowings in the country.SBI is a

Fortune500company.

The Bank is in the process of expanding its base overseas. Currently it has 82 offices

abroad spread over 32 countries. The seven subsidiaries of SBI are SBI Capital Markets,

SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards.

COMPANY PROFILE

State Bank of India is the largest and one of the oldest commercial bank in India, in

existence for more than 200 years. The bank provides a full range of corporate,

commercial and retail banking services in India. Indian central bank namely Reserve

Bank of India (RBI) is the major share holder of the bank with 59.7% stake. The bank is

capitalized to the extent of Rs.646bnwith the public holding (other than promoters) at

40.3%. SBI has the largest branch and ATM network spread across every corner of India.

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The bank has a branch network of over 14,000branches (including subsidiaries). Apart

from Indian network it also has a network of 73overseas offices in 30 countries in all

time zones, correspondent relationship with 520International banks in 123 countries. In

recent past, SBI has acquired banks in Mauritius, Kenya and Indonesia. The bank had

total staff strength of 198,774 as on 31st March, 2006. Of this, 29.51% are officers,

45.19% clerical staff and the remaining 25.30% were sub-staff. The bank is listed on the

Bombay Stock Exchange, National Stock Exchange, Kolkata Stock Exchange , Chennai

Stock Exchange and Ahmedabad Stock Exchange while its GDRs are listed on the

London Stock Exchange. SBI group accounts for around 25% of the total business of the

banking industry while it accounts for 35% of the total foreign exchange in India. With

this type of strong base, SBI has displayed a continued performance in the last few years

in scaling up its efficiency levels. Net Interest Income of the bank has witnessed a CAGR

of13.3% during the last five years. During the same period, net interest margin (NIM) of

the bank has gone up from as low as 2.9% in FY02 to 3.40% in FY06 and currently is at

3.32%.

Management

The bank has 14 directors on the Board and is responsible for the management of the

Banks business. The board in addition to monitoring corporate performance also carries

out functions such as approving the business plan, reviewing and approving the annualbudget sand borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the Chairman

of the bank. The five-year term of Mr. Bhatt will expire in March 2011. Prior to this

appointment, Mr. Bhatt was Managing Director at State Bank of Travancore. Mr. Bhatt

has more than 30 years of experience in the Indian banking industry and is seen as

futuristic leader in his approach towards technology and customer service. Mr. Bhatt has

had the best of foreign exposure in SBI. We believe that the appointment of Mr. Bhatt

would be a key to SBIs future growth momentum. Mr. T S Bhattacharya is the

Managing Director of the bank and known for his vast experience in the banking

industry. Recently, the senior management of the bank has been broadened considerably.

The positions of CFO and the head of treasury have been segregated , and new heads for

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HDFC Bank's mission is to be a World Class Indian Bank. The objective is to build

sound customer franchises across distinct businesses so as to be the preferred provider of

banking services for target retail and wholesale customer segments, and to achieve

healthy growth in profitability, consistent with the bank's risk appetite. The bank is

committed to maintain the highest level of ethical standards, professional integrity,

corporate governance and regulatory compliance. HDFC Bank's business philosophy is

based on four core values: Operational Excellence, Customer Focus, Product Leadership

and People.

CAPITAL STRUCTURE

As on 31st December, 2009 the authorized share capital of the Bank is Rs. 550 crore. The

paid-up capital as on said date is Rs. 455,23,65,640/- (45,52,36,564 equity shares of Rs.

10/- each). The HDFC Group holds 23.87 % of the Bank's equity and about 16.94 % of

the equity is held by the ADS Depository (in respect of the bank's American Depository

Shares (ADS) Issue). 27.46 % of the equity is held by Foreign Institutional Investors

(FIIs) and the Bank has about 4,58,683 shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock

Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed on

the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global

Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No

US40415F2002.

AMALGAMATION OF TIMES BANK & CENTURION BANK OF PUNJAB

WITH HDFC BANK

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was

formally approved by Reserve Bank of India to complete the statutory and regulatory

approval process. As per the scheme of amalgamation, shareholders of C Bop received 1

share of HDFC Bank for every 29 shares of C Bop.

The merged entity will have a strong deposit base of around Rs1,22,000 crore and net

advances of around Rs89,000 crore . The balance sheet size of the combined entity would

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be over Rs1,63,000 crore. The amalgamation added significant value to HDFC Bank in

terms of increased branch network, geographic reach, and customer base, and a bigger

pool of skilled man power.

In a milestone transaction in the Indian banking industry, Times Bank Limited (another

new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was

merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of

two private banks in the New Generation Private Sector Banks. As per the scheme of

amalgamation approved by the shareholders of both banks and the Reserve Bank of

India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares

of Times Bank.

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. As on December 31, 2009, the Bank has a

network of 1725 branches in 771 cities across India. All branches are linked on an online

real-time basis. Customers in over 500 locations are also serviced through Telephone

Banking. The Bank's expansion plans take into account the need to have a presence in all

major industrial and commercial centres, where its corporate customers are located, as

well as the need to build a strong retail customer base for both deposits and loan

products. Being a clearing / settlement bank to various leading stock exchanges, the Bank

has branches in centres where the NSE / BSE have a strong and active member base.

The Bank also has a network of 3898 ATMs across India. HDFC Bank's ATM network

can be accessed by all domestic and international Visa / MasterCard, Visa Electron /

Maestro, Plus / Cirrus and American Express Credit / Charge cardholders.

MANAGEMENT

Mr. Jagdish Capoor took over as the Bank's Chairman (non-executive) in July 2001. Prior

to this, Mr. Capoor was a Deputy Governor of the Reserve Bank of India.

The Bank's Managing Director, Mr. Aditya Puri, has been a professional banker for over

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25 years. Before joining HDFC Bank in 1994, he was heading Citibank's operations in

Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of

experience in public policy, administration, industry and commercial banking. Senior

executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad, head

various businesses and functions and report to the Managing Director. Given the

professional expertise of the management team and the overall focus on recruiting and

retaining the best talent in the industry, the bank believes that its people are a significant

competitive strength.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have online

connectivity, which enables the bank to offer speedy funds transfer facilities to its

customers. Multi-branch access is also provided to retail customers through the branch

network and Automated Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology

available internationally, to build the infrastructure for a world class bank. In terms ofcore banking software, the Corporate Banking business is supported by Flex cube, while

the Retail Banking business by Fin ware, both from i-flex Solutions Ltd. The systems are

open, scale able and web -enabled.

The Bank has prioritized its engagement in technology and the internet as one of its key

goals and has already made significant progress in web-enabling its core businesses. In

each of its businesses, the Bank has succeeded in leveraging its market position, expertise

and technology to create a competitive advantage and build market share.

BUSINESS PROFILE

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HDFC Bank caters to a wide range of banking services covering commercial and

investment banking on the wholesale side and transactional / branch banking on the retail

side. The bank has three key business segments:

Wholesale Banking

The Bank's target market is primarily large, blue-chip manufacturing companies in the

Indian corporate sector and to a lesser extent, small & mid-sized corporates and agri-

based businesses. For these customers, the Bank provides a wide range of commercial

and transactional banking services, including working capital finance, trade services,

transactional services, cash management, etc. The bank is also a leading provider of

structured solutions, which combine cash management services with vendor and

distributor finance for facilitating superior supply chain management for its corporate

customers. Based on its superior product delivery / service levels and strong customer

orientation, the Bank has made significant inroads into the banking consortia of a number

of leading Indian corporates including multinationals, companies from the domestic

business houses and prime public sector companies. It is recognised as a leading provider

of cash management and transactional banking solutions to corporate customers, mutual

funds, stock exchange members and banks.

Treasury

Within this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the

liberalisation of the financial markets in India, corporates need more sophisticated risk

management information, advice and product structures. These and fine pricing on

various treasury products are provided through the bank's Treasury team. To comply with

statutory reserve requirements, the bank is required to hold 25% of its deposits in

government securities. The Treasury business is responsible for managing the returns and

market risk on this investment portfolio.

Retail Banking

The objective of the Retail Bank is to provide its target market customers a full range of

financial products and banking services, giving the customer a one-stop window for all

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his/her banking requirements. The products are backed by world-class service and

delivered to customers through the growing branch network, as well as through

alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile

Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus

and the Investment Advisory Services programs have been designed keeping in mind

needs of customers who seek distinct financial solutions, information and advice on

various investment avenues. The Bank also has a wide array of retail loan products

including Auto Loans, Loans against marketable securities, Personal Loans and Loans for

Two-wheelers. It is also a leading provider of Depository Participant (DP) services for

retail customers, providing customers the facility to hold their investments in electronic

form.

HDFC Bank was the first bank in India to launch an International Debit Card in

association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as

well. The Bank launched its credit card business in late 2001. By March 2009, the bank

had a total card base (debit and credit cards) of over 13 million. The Bank is also one of

the leading players in the "merchant acquiring" business with over 70,000 Point-of-sale

(POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank

is well positioned as a leader in various net based B2C opportunities including a wide

range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

PRODUCTS AND SERVICES

STATE BANK OF INDIA PRODUCT AND SERVICES

State Bank of India is actively involved since 1973 in non-profit activity called

Community Services Banking. State Bank of India Services are most varied and

innovative amongst all its contemporaries. State Bank of India Services includes a host of

products and services to suit all types of consumer.

State Bank of India Services are offered through the following subsidiaries and Joint

Ventures -

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Banking Subsidiaries - State Bank of Bikaner and Jaipur (SBBJ), State Bank of

Hyderabad (SBH), State Bank of Indore (SBIr), State Bank of Mysore (SBM), State

Bank of Patiala (SBP), State Bank of Saurashtra (SBS) and State Bank of Travancore

(SBT).

Foreign Subsidiaries - State bank of India International (Mauritius) Ltd., State Bank of

India (California), State Bank of India (Canada) and INMB Bank Ltd, Lagos.

Non- banking Subsidiaries - SBI Capital Markets Ltd (SBICAP), SBI Funds

Management Pvt Ltd (SBI FUNDS), SBI DFHI Ltd (SBI DFHI), SBI Factors and

Commercial Services Pvt Ltd (SBI FACTORS) and SBI Cards & Payments Services Pvt.

Ltd. (SBICPSL)

Joint ventures - SBI Life Insurance Company Ltd (SBI LIFE).

State Bank of India offers its products and services in domains like -

Personal Banking.

NRI Services.

Agriculture.

International.

Corporate.

SME.

Domestic Treasury.

State Bank of India Services offers the following products through its well managed,

efficient and deep-rooted network:

Domestic Treasury.

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SBI Vishw Yatra Foreign Travel Card.

Broking Services

Revised Service Charge.

ATM Services.

Internet Banking.

E-Pay.

E-Rail.

RBIEFT.

Safe Deposit Lockers.

Gift Cheques.

MICR Codes.

Foreign Inward Remittances.

State bank of india also includes

1. Working Capital Financing

A. Assistance extended both as Fund based and Non-Fund based facilities to

Corporates , Partnership firms , Proprietary concerns

B. Working Capital finance extended to all segments of industries and services sector

such as IT.

2. Term Loans

To support capital expenditures for setting up new ventures as also for expansion,

renovation etc.

3. Deferred Payment Guarantees

To support purchase of capital equipments

4. Corporate Loans

For a variety of business related purposes to corporates.

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5. Export Credit

To Corporates / Non Corporates

6 . Strategic Business Units

(i) Corporate Accounts Group (CAG)

(ii) Project Finance

(iii) Lease Finance

An exclusive unit providing one s shopping to Corporates

A dedicated set up specialized in financing of infrastructure and other large

projects

Exclusive set up for handling large ticket leases.

7. Pricing

SBI's Prime Lending Rates (PLR) are among the lowest

Presently Bank has two PLR's

SBAR for loans payable on demand and upto one year

SBMTLR for loans payable beyond one year

8. Project Finance Strategic Business Unit

A one-stop-shop of financial services for new projects as well as expansion,

diversification and modernization of existing projects in infrastructure and non

infrastructure sectors.

Expertise

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Being India's largest bank and with the rich experience gained over generation, SBI

brings considerable expertise in engineering financial packages that address complex

financial requirements.

Project Finance SBU is well equipped to provide a bouquet of structured financialsolutions with the support of the largest Treasury in India (i.e. SBI's), International

Division of SBI and SBI Capital Markets Limited.

The global presence as also the well spread domestic branch network of SBI ensures that

the delivery of your project specific financial needs are totally taken care of.

Lead role in many projects

Allied roles such as security agent, monitoring/TRA agent etc.

Synergy with SBI cap s (exchange of leads, joint attempt in bidding for projects, joint

syndication etc.). In a way, the two institutions are complimentary to each other. We

have in house expertise (in appraising projects) in infrastructure sector as well as non-

infrastructure sector. Some of the areas are as follows: Infrastructure sector:

Infrastructure sector:

Road & urban infrastructure

Power and utilities

Oil & gas, other natural resources

Ports and airports

Telecommunications

Non-infrastructure sector:

Manufacturing: Cement, steel, mining,

engineering, auto components, textiles, Pulp

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& papers, chemical & pharmaceuticals

Services: Tourism & hospitality,

educational Institutions, health industry

Expertise

Rupee term loan

Foreign currency term loan/convertible bonds/GDR/ADR

Debt advisory service

Loan syndication

Loan underwriting

Deferred payment guarantee

Other customized products i.e. receivables securitisation, e.t.c

Why project Finance SBU?

Since its inception in 1995 the Project Finance SBU has built-up a strong reputation for

it's in-depth understanding of the infrastructure sector as well as non-infrastructure sector

in India and we have the ability to provide tailor made financial solutions to meet the

growing & diversified requirement for different levels of the project. The recent

transactions undertaken by PF-SBU include a wide range of projects undertaken by the

Indian Corporates.

What's in it for you?

Single window solution

Appetite for large value loans.

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Proven ability to arrange/syndicate

loans.

Competitive pricing.

Professional team

Dedicated group with sector expertise.

Panel of legal and technical experts.

Procedural ease

Standardized information requirements.

Credit appraisal/ delivery time period is

minimized.

Eligibility

The infrastructure wing of PF SBU deals with projects wherein

The project cost is more than Rs 100 Crores. The proposed share of SBI in the term loan

is more than Rs.50 crores. In case of projects in Road sector alone, the cut off will beproject cost of Rs.50 crores and SBI Term Loan Rs. 25 Crores, respectively.

The commercial wing of PF SBU deals with projects wherein;

The minimum project cost is Rs. 200 crores (Rs. 100 crores in respect of Services sector).

The minimum proposed term commitment is of Rs. 50 crores from SBI.

Introduction to Advance Product:

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Now a day not all the people have the capacity to fulfill their requirement by their own

earning, thats why they need help from others. For this so many government & private

sector bank provide them money to fulfill their requirement, thats call the Advance

Product (loan product) of the bank. All the banks have so many different types of

advance product as per the requirement of the people or customers. In Bhubaneswar also

there are so many banks those provide loan to the people for different causes.

Types of Advance Product of SBI

Home Loan

Educational Loan

Car Loan

Personal Loan

Property Loan

Loan Against Shares\Debentures

Etc.

Now a day a large no. of people are taking loan form different banks. It helps people to

fulfill their need and it really easy to repayment the loan amount with a longer repayment

period

SBI Home Loans:

Purpose

Purchase/ Construction of House/ Flat

Purchase of a plot of land for construction of House

Extension/ repair/ renovation/ alteration of an existing House/ Flat

Purchase of Furnishings and Consumer Durables as a part of the project cost.

Takeover of an existing loan from other Banks/ Housing Finance Companies.

Eligibility

Minimum age 18 years as on the date of sanction

Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by

which the loan should be fully repaid.

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Availability of sufficient, regular and continuous source of income for servicing

the loan repayment.

Loan Amount 40 to 60 times of NMI, depending on repayment capacity as % of NMI

as under

Net Annual Income EMI/NMI Ratio

Upto Rs.2 lacs 40%

Above Rs.2 lac to Rs. 5 lacs 50%

Above Rs. 5 lacs 55%

To enhance loan eligibility you have option to add:

1. Income of your spouse/ your son/ daughter living with you, provided they have a

steady income and his/ her salary account is maintained with SBI.

2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is

proposed to be rented out

3. Depreciation, subject to some conditions.

4. Regular income from all sources

Margin (Special Festival Season Offer)

Purchase/ Construction of a new House/ Flat/ Plot of land: 15% for loans up to

Rs. 1 cr., 20% for loans above Rs. 1 cr.

Repairs/ Renovation of an existing House/ Flat: 15%

CAR LOAN:Purpose

You can take finance for:

1. A new car, jeep or Multi Utility Vehicles\(MUVs)

2. A used car / jeep (not more than5yearsold).(Any make or model).

3. Take over of existing loan from other Bank/Financial institution (Conditions

apply)

Eligibility

To avail an SBI Car Loan, you should be :

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Individual between the age of 21-65 years of age.

A Permanent employee of State / Central Government, Public Sector Undertaking

Private company or a reputed establishment or

A Professionals or self-employed individual who is an income tax assessee or

A Person engaged in agriculture and allied activities.

.Net Annual Income Rs. 100,000/- and above.

Salient Features

Loan AmountThere is no upper limit for the amount of a car loan. A maximum loan amount of 2.5

times the net annual income can be sanctioned. If married, your spouse's income could

also be considered provided the spouse becomes a co-borrower in the loan. The loan

amount includes finance for one-time road tax, registration and insurance!

No ceiling on the loan amount for new cars.

Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.

Type of Loan

1. Term Loan

2. Overdraft

a) For New vehicles only

b) Minimum loan amount: Rs. 3 lacs.

Documents required you would need to submit the following documents along with the

completed application form if you are an existing SBI account holder:

1. Statement of Bank account of the borrower for last 12 months.

2. passport size photographs of borrower(s).

3. . Signature identification from bankers of borrower(s).

4. .A copy of passport /voters ID card/PAN card.

5. Proof of residence.6. Latest salary-slip showing all deductions

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7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years for

professional/self- employed/businessmen duly accepted by the ITO wherever

applicable to be submitted.

8. Proof of official address for non-salaried individuals

If you are not an account holder with SBI you would also need to furnish documents

that establish your identity and give proof of residence.

EDUCATION LOAN:

A term loan granted to Indian Nationals for pursuing higher education in India or abroad

where

Admission has been secured.

Eligible Courses

All courses having employment prospects are eligible.

Graduation courses/ Post graduation courses/ Professional courses

Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan

Fees payable to college/school/hostel

Examination/Library/Laboratory fees

Purchase of Books/Equipment/Instruments/Uniforms

Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees

for the

entire course)

Travel Expenses/Passage money for studies abroad

Purchase of computers considered necessary for completion of course

Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc.

Amount of Loan

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For studies in India, maximum Rs. 10 lacs

Studies abroad, maximum Rs. 20 lacs

SBI SARAL PERSONAL LOAN:Purpose

The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for

domestic or foreign travel, medical treatment of self or a family member, meeting any

financial liability, such as marriage of son/daughter, defraying educational expenses of

wards, meeting margins for purchase of assets etc.)

Eligibility

You are eligible if you are a Salaried individual of good quality corporate, self employed

engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing.

Salient Features

Loan Amount

Your personal loan limit would be determined by your income and repayment capacity.

Minimum: Rs.24,000/- in metro and urban centres

Rs.10, 000/- in rural/semi-urban centres

Maximum: 12 times Net Monthly Income for salaried individuals and pensioners

subject to a ceiling of Rs.10 lacs in all centres

Documents Required

Important documents to be furnished while opening a Personal Loan Account:

For existing bank customers

Passport size photograph

From salaried individuals

Latest salary slip and Form 16

Margin

We do not insist on any margin amount.Interest Rates

3.25% above SBAR floating i.e. 15.50% p.a

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PROPERTY LOAN:

Purpose

This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If

amount of loan is Rs.25.00 lacs and above then purpose of loan will have to be specified

along with an undertaking that loan will not be used for any speculative purpose

whatever including speculation on real estate and equity shares.

Eligibility

You are eligible if you are:

A. An individual who is;

a. An Employee or

b. A Professional, self-employed or an income tax assesse or

c. Engaged in agricultural and allied activities.B. Your Net Monthly Income (salaried) is in excess of Rs.12,000/- or Net Annual Income

(others) is in excess of Rs.1,50,000/-.

The income of the spouse may be added if he/she is a co-borrower or a guarantor.

C. Maximum age limit: 60 years.

Salient Features

Loan Amount

Minimum: Rs.25, 000/-

Maximum: Rs.1 crore. The amount is decided by the following calculation:

24 times the net monthly income of salaried persons (Net of all deductions including

TDS) OR

2 times the net annual income of others (income as per latest IT return less taxes

payable)

Margin

We will finance upto 75% of the market value of your property.

Interest

Term Loan 0.75% above SBAR. i.e.13.00% p.a. Floating

Repayment

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Maximum of 60 equated monthly installments, upto 120 months for salaried individuals

with check-off facility. You could opt to divert any surplus funds towards prepayment of

the loan without attracting any penalty.

Security

As per banks extant instructions

LOAN AGAINST SHARES \ DEBENTURES:

Eligibility

This facility is available to our existing individual customers enjoying a strong

relationship with SBI. This loan could be availed either singly or as a joint account with

spouse n' Either or Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or

Demand Loan.The facility is available at 50 select centers.

Salient Features:

Purpose

For meeting contingencies and needs of personal nature. Loan will be permitted for

subscribing to rights or new issue of shares / debentures against the security of existing

shares / debentures. Loan will not be sanctioned for (i) speculative purposes (ii) inter-

corporate investments or (iii) acquiring controlling interest in company / companies.

Loan Amount

You can avail of loans up to Rs 20.00 lacs against your shares/debentures.

Documents Required

You will be required to submit a declaration indicating:

1. Details of loans availed from other banks/ branches for acquiring shares/ debentures.

2. Details of loans availed from other banks/ branches against security of shares/

debentures

Margin

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You will need to provide a margin amount of 50% of the prevailing market prices of the

shares/non-convertible debentures being offered as security. (The market prices refer to

the prices inthe Stock Exchanges as reported in the Economic Times.)

Interest

At SBAR Floating i.e. 12.25% p.a.

Repayment Schedule

To be liquidated in maximum period of 30 months through a suitable reducing DP

programme.

In case of a default or if the outstanding is over Rs.20.00 lacs, the shares/debentures will

be

transferred in the name of the Bank.

Security:

Pledge of the demat shares/debentures against which overdraft is granted

HDFC BANK PRODUCT AND SERVICES

Accounts & Deposits Loans Cards

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Savings Accounts

Regular SavingsAccount

Savings Plus

AccountSavings MaxAccount

Senior CitizensAccount

No Frills Account

Institutional SavingsAccount

Salary Accounts

PayrollClassic

Regular

Premium

Defence

No Frills SalaryAccount

ReimbursementCurrent Account

Kid's AdvantageAccount

Pension Saving BankAccount

Family SavingsGroup

Kisan No FrillsSavings

Kisan Club Savings

Current Accounts

Plus Current Account

Trade CurrentAccount

Personal Loans

Smart Draft

Home Loans

Two Wheeler Loans

New Car Loans

Used Car Loans

Gold Loan

Educational Loan

Loan Against Securities

Loan Against Property

Loans Against RentalReceivables

Health Care Finance

Retail Agri Loans

Tractor Loans

Commercial VehicleFinance

Working CapitalFinance

ConstructionEquipment Finance

Warehouse ReceiptLoans

Credit Cards

Silver Credit Card

Value Plus CreditCard

Gold Credit Card

Titanium Credit Card

Woman's Gold CreditCard

Platinum Plus CreditCard

Visa Signature CreditCard

World MasterCard

Credit Card

Corporate PlatinumCredit Card

Corporate CreditCard

Business PlatinumCredit Card

Business Gold CreditCard

Purchase CardDistributor Card

Debit Cards

Easy ShopInternational DebitCard

Easy Shop GoldDebit Card

Easy Shop

InternationalBusiness Debit Card

Easy Shop Woman'sAdvantage DebitCard

50
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