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CONTENT Page no. Certificate from the Organization / Corporate Guide Certificate from the Faculty Guide Acknowledgement………………………………………………………………...02 Executive Summary…………………….................................................... ......03 Chapter 1…………………………………………………………………………..04 Company Profile Overview…………………………………………………………………...05 History……………………………………………………………………...07 Competitors…………………………………...…………………………....09 Strength/Opportunity & weakness/Threats………………………………...10 Different Products……………………...………….……………………….11 Awards & Recognitions by SBI……….……………………………….......12 Chapter 2…………………………………………………………………………..14 Introduction to Advance Product...…………………………….……………15 SBI Advance Product.……………………………………………………....16 Statement the Problem……………………………………………………...25 Research objectives…………………………………………...…………….26 Significance and scope……………………………………………………...27 Chapter 3………………………………………………………………………….28 Research methodology Chapter 4 ………………………………………………………………………...31 Analysis of data Chapter 5………………………………………………………………………....39 1

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  • CONTENT Page no. Certificate from the Organization / Corporate Guide Certificate from the Faculty GuideAcknowledgement...02 Executive Summary..........................................................03Chapter 1..04 Company Profile Overview...05 History...07 Competitors.......09 Strength/Opportunity & weakness/Threats...10 Different Products.....11 Awards & Recognitions by SBI........12Chapter 2..14 Introduction to Advance Product....15 SBI Advance Product.....16 Statement the Problem...25 Research objectives....26 Significance and scope...27Chapter 3.28 Research methodologyChapter 4 ...31 Analysis of dataChapter 5....39 Findings40 Suggestion & Recommendation..... 41 Conclusion43Annexure (Questionnaire).44Bibliography....47 1
  • Acknowledgement It is my proud privilege to release the feelings of my gratitude to severalpersons who helped me directly or indirectly to conduct this project work. I express myheart full indebtness and owe a deep sense of gratitude to my teacher and my faculty guideProf. Deepak Tondon, Professor, IILM Institute For Higher Education, Gurgaon, and to mycorporate guide Mr. Achutananda Parida AGM, SBI, Main Branch Bhubaneswar, Mr.Deepankar Sahoo & Miss. Sanghamitra Tripathy CRE, Personal Banking, SBI, MainBranch, Bhubaneswar, for their sincere guidance and inspiration in completing this project. I am extremely thankful to the Director, Dean, Chairman and faculties of theIILM Institute for Higher Education for their coordination and cooperation and thankful toProf. Deepak Tandon for his kind guidance and encouragement. I am also extremely thankful to all those persons who have positively helped meand customers who responded my questionnaire, around whom the whole project cyclerevolves. I also thank all my friends who have more or less contributed to the preparationof this project report. I will be always indebted to them. Thanking You 2
  • Executive SummaryIn the growing global competition, the productivity of any business concern depends uponthe behavioral aspect of consumers. This topic deals with the customers perceptiontowards other Advance Product from SBI credit cards at Bhubaneswar. This project reportcontains 5 different chapters. The report begins with the introduction to company, its area ofoperation, its organization structure, its achievements, etc.The second chapter is the introduction to the Advance Product which gives a brief idearegarding ADVANCE PRODUCT of SBI MAIN BRANCH, BBSR where the project isundertaken. It also contains the objectives and limitations of the project.The third chapter, methodology adopted in preparing this report is mentioned. It covers thesample procedure, types of data used and the data collection method.The fourth chapter comprehensive coverage of forecasting concepts and techniques whichshows the analysis of data through tabulation, computation and graphical representationof data collected from survey.The fifth chapter deals with the findings, suggestion & conclusion part which is very muchimportant after analysis is made.As we know that only analysis and conclusion is not the end of a research, so in the sixthchapter the recommendation part is covered which are made after a depth study of theanalysis part of thesis.In each of the five chapters as described above, every chapter has been scheduled in amanner so as to enable the reader to appreciate the contents easily. The report issupported by figures and data wherever necessary with a view to assist the reader indeveloping a clear cut understanding of the topic.I hope this report will be extremely useful for those it is meant. Constructive and healthysuggestions for improvements of the report will be great fully appreciated. Chinmaya Parija 3
  • Company Profile Overview History Competitors Strength/Opportunity & Weakness/Threats Different Products Awards & Recognitions by SBI 4
  • OVERVIEWState Bank of India is the largest and one of the oldest commercial bank in India, in existencefor more than 200 years. The bank provides a full range of corporate, commercial and retailbanking services in India. Indian central bank namely Reserve Bank of India (RBI) is the majorshare 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 ATMnetwork spread across every corner of India. 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, Kenyaand 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 islisted on the Bombay Stock Exchange, National Stock Exchange, Kolkata Stock Exchange,Chennai Stock Exchange and Ahmedabad Stock Exchange while its GDRs are listed on theLondon Stock Exchange. SBI group accounts for around 25% of the total business of thebanking industry while it accounts for 35% of the total foreign exchange in India. With this typeof strong base, SBI has displayed a continued performance in the last few years in scaling upits efficiency levels. Net Interest Income of the bank has witnessed a CAGR of 13.3% during thelast five years. During the same period, net interest margin (NIM) of the bank has gone up fromas low as 2.9% in FY02 to 3.40% in FY06 and currently is at 3.32%.ManagementThe bank has 14 directors on the Board and is responsible for the management of theBanks business. The board in addition to monitoring corporate performance also carries outfunctions such as approving the business plan, reviewing and approving the annual budgetsand borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the Chairman of the bank. Thefive-year term of Mr. Bhatt will expire in March 2011. Prior to this appointment, Mr. Bhatt wasManaging Director at State Bank of Travancore. Mr. Bhatt has more than 30 years ofexperience in the Indian banking industry and is seen as futuristic leader in his approachtowards technology and customer service. Mr. Bhatt has had the best of foreign exposure inSBI. We believe that the appointment of Mr. Bhatt would be a key to SBIs future growthmomentum. Mr. T S Bhattacharya is the Managing Director of the bank and known for his vastexperience in the banking industry. Recently, the senior management of the bank has beenbroadened considerably. The positions of CFO and the head of treasury have been segregated,and new heads for rural banking and for corporate development and new business bankinghave been appointed. The managements thrust on growth of the bank in terms of network andsize would also ensure encouraging prospects in time to come. 5
  • Shareholding & Liquidity (Till 30th Sept. 2007)Reserve Bank of India is the largest shareholder in the bank with 59.7% stake followed byoverseas investors including GDRs with 19.78% stake as on September 06. Indian financialinstitutions held 12.3% while Indian public held just 8.2% of the stock. RBI is the monetaryauthority and having majority shareholding reflects conflict of interest. Now the government isrectifying the above error by transferring RBIs holding to itself. Post this, SBI will have a furtherheadroom to dilute the GOIs stake from 59.7% to 51.0%, which will further improve its CARand Tier I ratio.Key Areas of OperationsThe business operations of SBI can be broadly classified into the key income generating areassuch as National Banking, International Banking, Corporate Banking, & Treasury operations. 6
  • HISTORYThe origin of the State Bank of India goes back to the first decade of the nineteenth centurywith the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later thebank received its charter and was re-designed as the Bank of Bengal (2 January 1809). Aunique institution, it was the first joint-stock bank of British India sponsored by the Governmentof Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followedthe Bank of Bengal. These three banks remained at the apex of modern banking in India tilltheir amalgamation as the Imperial Bank of India on 27 January 1921.Primarily Anglo-Indian creations, the three presidency banks came into existence either as aresult of the compulsions of imperial finance or by the felt needs of local European commerceand were not imposed from outside in an arbitrary manner to modernise Indias economy. Theirevolution was, however, shaped by ideas culled from similar developments in Europe andEngland, and was influenced by changes occurring in the structure of both the local tradingenvironment and those in the relations of the Indian economy to the economy of Europe andthe global economic framework.The three banks were governed by royal charters, which were revised from time to time. Eachcharter provided for a share capital, four-fifth of which were privately subscribed and the restowned by the provincial government. The members of the board of directors, which managedthe affairs of each bank, were mostly proprietary directors representing the large Europeanmanaging agency houses in India. The rest were government nominees, invariably civilservants, one of whom was elected as the president of the board. Group Photograph of Central Board (1921) 7
  • BusinessThe business of the banks was initially confined to discounting of bills of exchange or othernegotiable private securities, keeping cash accounts and receiving deposits and issuing andcirculating cash notes. Loans were restricted to Lakh and the period of accommodationconfined to three months only. The security for such loans was public securities, commonlycalled Companys Paper, bullion, treasure, plate, jewels, or goods not of a perishable natureand no interest could be charged beyond a rate of twelve per cent. Loans against goods likeopium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were alsogranted but such finance by way of cash credits gained momentum only from the third decadeof the nineteenth century. All commodities, including tea, sugar and jute, which began to befinanced later, were either pledged or hypothecated to the bank. Demand promissory noteswere signed by the borrower in favour of the guarantor, which was in turn endorsed to the bank.Lending against shares of the banks or on the mortgage of houses, land or other real propertywas, however, forbidden.Indians were the principal borrowers against deposit of Companys paper, while the business ofdiscounts on private as well as salary bills was almost the exclusive monopoly of individualsEuropeans and their partnership firms. But the main function of the three banks, as far as thegovernment was concerned, was to help the latter raise loans from time to time and alsoprovide a degree of stability to the prices of government securities.First Five Year PlanIn 1951, when the First Five Year Plan was launched, the development of rural India was giventhe highest priority. The commercial banks of the country including the Imperial Bank of Indiahad till then confined their operations to the urban sector and were not equipped to respond tothe emergent needs of economic regeneration of the rural areas. In order, therefore, to servethe economy in general and the rural sector in particular, the All India Rural Credit SurveyCommittee recommended the creation of a state-partnered and state-sponsored bank by takingover the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bankof India was constituted on 1 July 1955. More than a quarter of the resources of the Indianbanking system thus passed under the direct control of the State. Later, the State Bank of India(Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eightformer State-associated banks as its subsidiaries (later named Associates).The State Bank of India was thus born with a new sense of social purpose aided by the 480offices comprising branches, sub offices and three Local Head Offices inherited from theImperial Bank. The concept of banking as mere repositories of the communitys savings andlenders to creditworthy parties was soon to give way to the concept of purposeful bankingsubserving the growing and diversified financial needs of planned economic development. TheState Bank of India was destined to act as the pacesetter in this respect and lead the Indian 8
  • banking system into the exciting field of national development. COMPETITORSCompetitors and other players in the field:-Top Performing Public Sector BanksAndhra BankAllahabad BankPunjab National BankDena BankVijaya BankTop Performing Private Sector BanksHDFC BankICICI BankAXIS BankKotak Mahindra BankCenturion Bank of PunjabTop Performing Foreign BanksCitibankStandard CharteredHSBC BankABN AMRO Bank 9
  • American ExpressStrength/ Opportunities:The growth for SBI in the coming years is likely to be fueled by the following factors: Continued effort to increase low cost deposit would ensure improvement in NIMs andhence earnings. Growing retail & SMEs thrust would lead to higher business growth. Strong economic growth would generate higher demand for funds pursuant to highercorporate demand for credit on account of capacity expansion.Weakness/ Threats:The risks that could ensue to SBI in time to come are as under: SBI is currently operating at a lowest CAR. Insufficient capital may restrict the growthprospects of the bank going forward. Stiff competition, especially in the retail segment, could impact retail growth of SBI andhence slowdown in earnings growth. Contribution of retail credit to total bank credit stood at 26%. Significant thrust on growingretail book poses higher credit risk to the bank. Delay in technology upgradation could result in loss of market shares. Management indicated a likely pension shortfall on account of AS-15 to be close toRs50bn. Slow down in domestic economy would pose a concern over credit off-take therebyimpacting earnings growth. 10
  • DIFFERENT PRODUCTS OF SBI:DEPOSIT LOANS CARDS DIFFERENT CREDIT CARDS Savings Home Consumer SBI International Account Loans Cards cards Life Plus Loan Credit Card SBI Gold cards Senior Citizens Against Savings Property Account Fixed Personal Travel Card SBI Gold Master Deposits Loans cards Security Car Loan Debit Cards Your City Your Cards Deposits Recurring Loans Commercial Deposits against Cards Securities Tax-Saver Two Corporate Partnership Cards Fixed Deposit Wheeler Cards Salary Account Pre- Prepaid Card approved Loans Advantage Retail Asset Purchase Card SBI Employee Woman Cards Savings Account Rural Savings Farmer Distribution Account Finance Cards Peoples Business Business Card SBI Advantage Savings Installment Cards Account Loans 11
  • Freedom Flexi Cash Merchant Savings Services Account 12
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  • Introduction to Advance Product SBI Advance Product Statement the Problem Research objectives Significance and scope Introduction to Advance Product: 15
  • 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 bankprovide them money to fulfill their requirement, thats call the Advance Product (loan product) ofthe bank. All the banks have so many different types of advance product as per the requirementof the people or customers. In Bhubaneswar also there are so many banks those provide loanto the people for different causes.Types of Advance Product Home Loan Educational Loan Car Loan Personal Loan Property Loan Loan Against SharesDebentures Etc.Now a day a large no. of people are taking loan form different banks. It helps people to fulfilltheir need and it really easy to repayment the loan amount with a longer repayment period. SBI Advance ProductSBI Home Loans:PurposePurchase/ Construction of House/ Flat 16
  • Purchase of a plot of land for construction of HouseExtension/ repair/ renovation/ alteration of an existing House/ FlatPurchase of Furnishings and Consumer Durables as a part of the project cost.Takeover of an existing loan from other Banks/ Housing Finance Companies.EligibilityMinimum age 18 years as on the date of sanctionMaximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which theloan should be fully repaid.Availability of sufficient, regular and continuous source of income for servicing the loanrepayment.Loan Amount40 to 60 times of NMI, depending on repayment capacity as % of NMI as under Net Annual Income EMI/NMI RatioUpto 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 steadyincome and his/ her salary account is maintained with SBI.2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased isproposed to be rented out.3. Depreciation, subject to some conditions.4. Regular income from all sourcesMargin (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%Interest Rates w.e.f 27.2.2008Floating interest rates(linked to State Bank Advance Rate - SBAR) 17
  • (SBAR: 12.25% p.a.) Loan Tenor Above 5 years Above 15 years and Upto 5 years-> and upto 15 years upto 25 years Upto Rs.30 2.25% below 2.00% below 1.75% belowLacs SBAR, 10.00% p.a. SBAR, 10.25% p.a. SBAR, 10.50% p.a.Above 2.00% below 1.75% below 1.50% belowRs.30 Lacs SBAR, 10.25% p.a. SBAR, 10.50% p.a. SBAR, 10.75% p.a.Fixed interest rates Tenure Rate of Interest (p.a.)*Upto 10 years 12.75%* Fixed rate loans will be subject to: force maejure clause and interest reset at the end ofevery two years on the basis of fixed interest rates prevailing then.CAR LOAN:PurposeYou can take finance for:A new car, jeep or Multi Utility Vehicles (MUVs)A used car / jeep (not more than 5 years old). (Any make or model).Take over of existing loan from other Bank/Financial institution (Conditions apply)EligibilityTo avail an SBI Car Loan, you should be : 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. 18
  • Salient FeaturesLoan AmountThere is no upper limit for the amount of a car loan. A maximum loan amount of 2.5 times thenet annual income can be sanctioned. If married, your spouses income could also beconsidered provided the spouse becomes a co-borrower in the loan. The loan amount includesfinance 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 Loan1. Term Loan2. Overdraft - a) For New vehicles only b) Minimum loan amount: Rs. 3 lacs.Documents requiredyou would need to submit the following documents along with the completed application form ifyou are an existing SBI account holder: 1. Statement of Bank account of the borrower for last 12 months. 2. 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 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 thatestablish your identity and give proof of residence.MarginNew / Used vehicles: 15% of the on the road price.RepaymentYou enjoy the longest repayment period in the industry with us.Repayment period:For Salaried: Maximum of 84 monthsFor Self-employed & Professionals: Maximum 60 monthsRepayment period for used vehicles :Up to 84 months from the date of original purchase of thevehicle (subject to maximum tenure as above).Prepayment Penalty: 19
  • Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certainconditionsFLOATING RATES:A. for Term Loans1. New Vehicles (Term Loan) Floating only W.E.F. February 27, 2008Repayment Period All Centers (SBAR - 12.25%)Upto 3 years (for loans Rs. 7.5 lac & above) 0.75% below SBAR i.e. 11.50% p.a.Upto 3 years (for loans below Rs. 7.5 lac) 0.50% below SBAR i.e. 11.75%p.a.Above 3 yrs up to 5 yrs (for all loans) 0.50% below SBAR i.e. 11.75% p.a.Above 5 yrs up to 7 yrs (for all loans) 0.25% below SBAR i.e. 12.00% p.a.2. Used Vehicles: Floating only W.E.F. February 27, 2008Repayment Period All Centers (SBAR-12.25%)Upto 3 years 3.00% above SBAR i.e. 15.25% p.a.Above 3 yrs up to 7 yrs 3.25% above SBAR i.e. 15.50% p.a.B. For Overdrafts: For New Vehicles only W.E.F. February 27, 2008Repayment Period All Centres (SBAR 12.25%)Upto 3 years (for loans Rs. 7.5 lac & above) 0.25% below SBAR i.e. 12.00% p.a.Upto 3 years (for loans below Rs. 7.5 lac) At SBAR i.e. 12.25% p.a.Above 3 yrs up to 5 yrs (for all loans) At SBAR i.e. 12.25% p.a.Above 5 yrs up to 7 yrs (for all loans) 0.25% above SBAR i.e. 12.50% p.a.EDUCATION LOAN:A term loan granted to Indian Nationals for pursuing higher education in India or abroad whereadmission has been secured.Eligible CoursesAll courses having employment prospects are eligible. Graduation courses/ Post graduation courses/ Professional courses Other courses approved by UGC/Government/AICTE etc. 20
  • 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 For studies in India, maximum Rs. 10 lacs Studies abroad, maximum Rs. 20 lacsInterest Rates(with effect from 1st June 2008)For loans up to Rs.4 lacs - 11.75 % p.a. FloatingFor loans above Rs. 4 lacs and upto Rs.7.50 lacs - 13.25 % FloatingFor loans above Rs.7.50 lacs - 12.25% p.a. FloatingProcessing Fees No processing fee/ upfront charges Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin moneyRepayment TenureRepayment will commence one year after completion of course or 6 months after securing ajob, whichever is earlier. Place of Study Loan Amount Repayment in Period Years Studies in India Rs. 10.0 lacs 5-7 Studies Abroad Rs. 20.0 lacs 5-7Security 21
  • Amount For loans upto Rs. 10.00 lacs for Studies in India and upto Rs. 20.00 lacs for studies abroad Upto Rs. 4 lacs No Security Above Rs. 4 lacs to Rs. 7.50 Collateral security in the form of suitable third party Guarantee. The bank may, at its discretion, in l exceptional cases, weive third party guarantee if a satisfied with the net-worth/means of parent/s who c would be executing the documents as "joint s borrower" Above Rs. 7.50 lacs. Tangible collateral security of suitable value, along with the assignment of future income of the student For payment of installments.All loans should be secured by parent(s)/guardian of the student borrower. In case ofmarried person, co-obligator can be either spouse or the parent(s)/ parents-in-lawMargin For loans up to Rs.4.0 lacs : No Margin For loans above Rs.4.0 lacs: o Studies in India: 5% o Studies Abroad: 15%Documentation Required Completed Education Loan Application Form. Mark sheets of last qualifying examination Proof of admission scholarship, studentship etc Schedule of expenses for the specified course 2 passport size photographs Borrowers Bank account statement for the last six months Income tax assessment order, of last 2 years Brief statement of assets and liabilities, of the Co-borrower Proof of Income (i.e. Salary slips/ Form 16 etc)SBI SARAL PERSONAL LOAN:PurposeThe loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic orforeign travel, medical treatment of self or a family member, meeting any financial liability, suchas marriage of son/daughter, defraying educational expenses of wards, meeting margins forpurchase of assets etc.) 22
  • EligibilityYou are eligible if you are a Salaried individual of good quality corporate, self employedengineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing.Salient FeaturesLoan AmountYour personal loan limit would be determined by your income and repayment capacity.Minimum: Rs.24,000/- in metro and urban centresRs.10, 000/- in rural/semi-urban centresMaximum: 12 times Net Monthly Income for salaried individuals and pensioners subject to aceiling of Rs.10 lacs in all centresDocuments RequiredImportant documents to be furnished while opening a Personal Loan Account:For existing bank customersPassport size photographFrom salaried individualsLatest salary slip and Form 16MarginWe do not insist on any margin amount.Interest Rates3.25% above SBAR floating i.e. 15.50% p.a.RepaymentThe loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to,without attracting any prepayment penalty.SecurityNILProcessing FeeProcessing charges are 1-2% of the loan amount. This is amongst the lowest fees in theindustry. Processing fees have to be paid upfront. There are no hidden costs or otheradministrative charges.PROPERTY LOAN:PurposeThis is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If amountof loan is Rs.25.00 lacs and above then purpose of loan will have to be specified along with anundertaking that loan will not be used for any speculative purpose whatever includingspeculation on real estate and equity shares. 23
  • EligibilityYou are eligible if you are:A. An individual who is;a. An Employee orb. A Professional, self-employed or an income tax assesse orc. 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 FeaturesLoan AmountMinimum: 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)MarginWe will finance upto 75% of the market value of your property.InterestTerm Loan 0.75% above SBAR. i.e.13.00% p.a. FloatingRepaymentMaximum of 60 equated monthly installments, upto 120 months for salaried individuals withcheck-off facility. You could opt to divert any surplus funds towards prepayment of the loanwithout attracting any penalty.SecurityAs per banks extant instructions.LOAN AGAINST SHARES DEBENTURES:EligibilityThis facility is available to our existing individual customers enjoying a strong relationship withSBI. This loan could be availed either singly or as a joint account with spouse in Either or 24
  • Survivor/ Former or Survivor mode. It is offered as an Overdraft or Demand Loan.The facility is available at 50 select centers.Salient Features:PurposeFor meeting contingencies and needs of personal nature. Loan will be permitted for subscribingto 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-corporateinvestments or (iii) acquiring controlling interest in company / companies.Loan AmountYou can avail of loans up to Rs 20.00 lacs against your shares/debentures.Documents RequiredYou will be required to submit a declaration indicating: Details of loans availed from other banks/ branches for acquiring shares/ debentures. Details of loans availed from other banks/ branches against security of shares/ debenturesMarginYou 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.)InterestAt SBAR Floating i.e. 12.25% p.a.Repayment ScheduleTo 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 betransferred in the name of the Bank.Security:Pledge of the demat shares/debentures against which overdraft is granted. 25
  • Statement of problem SBI Main Branch, Bhubaneswar want to know about the customer perception about the advance product provide by them to the people. To find out what kind of service provide by the competitors in advance product. To find out the need of the customer and hence formulate the strategy to level the economy in the society. How the products are helping the customer. To know the utility of the product. To find out the need of the customer in Bhubaneswar region and introduce new product or facilitate new service in existing product. 26
  • Research objectivesSummer Internship Project gives a practical exposure and helps in acquiring the on road skills. First and foremost objective is to find out the reasons for using of Advance Product from SBI. To find out the services that other bank given to their customer. To generate the leads through the survey. To sort out the prospective leads from the data I have collected through the survey. To build the relation ship with the customers and to follow up them, make sure that they are satisfied with the product. To maintain good relationship with the corporate employees. To get more references from the customers and generate new leads by following a chain process. To place SBI Advance Product ahead of the competitors. To find out the customer awareness on booming Advance Product market and to find out the using patterns of the people To make the customer aware of the benefits of the product and convince him to go for SBI Advance Product. 27
  • Significance and scopeThe geographical scope of the study is restricted to Bhubaneswar only with sample size of 2000people.All the analysis and suggestions are based on the analysis of the both primary and secondarydata.There fore the scope of the study revolves around the following aspects:- Consumer perception towards Advance Product Consumer awareness about Advance Product scheme and its benefit. Aware the Bank about the customer problems, especially in case of automobile sector. 28
  • Research methodology 29
  • Research methodologyResearch methodology is a methodology for collecting all sorts of information & data pertainingto the subject in question. The objective is to examine all the issues involved & conductsituational analysis. The methodology includes the overall research design, sampling procedure& fieldwork done & finally the analysis procedure. The methodology used in the studyconsistent of sample survey using both primary & secondary data. The primary data has beencollected with the help of questionnaire as well as personal observation book, magazine;journals have been referred for secondary data. The questionnaire has been drafted &presented by the researcher himself. Sample Size: Sample of 2000 people was taken into study, and their data was collected Sampling Technique: To study the Project, a Simple Random Sampling technique is used. Data Collection: Collection of data is done by Secondary Data & through Questionnaire i.e., Primary data was collected through Questionnaire. 30
  • Data Analysis: After data collection, Im able to analyze customers views, ideas and opinions related to Advance Product and about SBI Advance Product and from this, SBI will come to know the customer requirements. Data Interpretation: Interpretation of data is done by using statistical tools like Pie diagrams, Bar graphs, and also using quantitative techniques (by using these techniques) accurate information is obtained. Classification & tabulation of data: The data thus collected were classified according to the categories, counting sheets & the summary tables were prepared. The resultant tables were one dimensional, two dimensional. Statistical tools used for analysis: Out of the total respondents, the respondents who responded logically were taken into account while going into statistical details & analysis of data. The tools that have been used for analyzing data & inference drawing are mainly statistical tools like percentage, ranking, averages, etc.As per questionnaire and market surveys I have find out different responses from differentpeople. According to their responses I analyze the findings and draw certain remarks. 31
  • Analysis of data 32
  • GRAPHICAL REPRESENTATION OF DATAQ1. On which bank you depend for your regular transaction? ( ) No. of People SBI 60 % (1200) ICICI 33 % (660) HDFC 5% (100) OTHER 2% (40) TOTAL NO. OF PEOPLE 2000 RESPONSES OF PEOPLE IN % 5% 2% 33% SBI ICICI 60% HDFC OTHER 33
  • It has been observed that approximately 60% correspondents are using the service of SBI fortheir daily transaction, around 33% of people are using ICICI Bank for their transaction and only5% & 2% of people are using HDFC & other Bank service respectively in Bhubaneswar. It alsoshows that SBI have the highest market position in Bhubaneswar as per my sample.Q2. Are you aware of products & services provided by SBI? YES 85% (1700) NO 15% (300) Total No. of People 2000 NO 15% YES 85%From the above data it is clear that most of the customers (around 85%) of Bhubaneswar havethe idea about the product & services of SBI, the rest 15% have the idea about the productthey are using. In this 15% most of the people are from typical rural area (Farmers). 34
  • Q3. If yes are you aware of the advance products (Loan segments) of SBI? YES 95%(1900) NO 5% (100) TOTAL NO. OF PEOPLE 2000 % OF PEOPLE 5% YES NO 95% 35
  • It is clear that most of the people have the idea about the advance product of SBI. Almost allthe 95% people who have the idea about the advance product are the user of SBI product &service.Q4. Which bank you prefer for taking loans? 85% (1800) SBI ICICI 7% (140) HDFC 2% (40) OTHER 1% (20) TOTAL NO. OF PEOPLE 2000 Sales 2% 1% 12% SBI ICICI HDFC 85% OTHER 36
  • According to my sample size 85% of people prefer SBI for loan product, but some people preferICICI, HDFC or OTHER Bank for loan because they are working with that bank & it is easier forthem to get loan from their bank & it easier for them to pay the interest because it is less ascompare to other bank because they are the employee of that bank.Q5. If you prefer SBI for taking loan than what influence you to take Loan from SBI?Most of the people said that they prefer SBI for taking loan because of the transparency and thelowest interest rate for any kind of loan product. And it is easy to get loan from SBI as compareto other bank because less paper work is require and as it is the largest govt. bank in India andhaving partnership with RBI (Reserve Bank of India) and other association, it is easier for SBI togive loan to people with a longer repayment period.Q.6 Which loan product of SBI you have used? HOME LOAN 47% (846) EDUCATIONAL LOAN 20% (360) CAR LOAN 15% (270) PERSONAL LOAN 10% (180) OTHER 8% (144) TOTAL NO. OF PEOPLE 1800 37
  • Sales 10% 8% HOME LOAN 47% 15% EDUCATIONAL LOAN CAR LOAN 20% PERSONAL LOAN OTHERFrom the sample size 85% of people are using the SBI loan product. From the 1800 people47% of people took home loan from SBI. 20% of people took education loan for their children,15% of people took car loan from SBI. Some of the customer took 2 type of loan from SBI likeboth car & educational loan and home & car loan. 10% of people took personal loan.Q7. What do you feel about the services providing by SBI in advance product? Bad 0% (0) Satisfactory 2% (40) Good 55% (1100) Excellent 43% (860) TOTAL NO. OF PEOPLE 2000 38
  • CUSTOMER PERCEPTION TOWARDS THE SERVICE PROVIDE BY SBI IN ADVANCE PRODUCT 0% 2% 43% BAD SATISFACTORY 55% GOOD EXCELLENTFrom this it is clear that the service provide by SBI in its advance product is good in betweenthe customer. All of them satisfy with the product provide by SBI. 55% of people said that theservice provide by SBI is good & 43% said it is excellent & just 2% of people said that it issatisfactory.Q8. Which features you like most in Loan segments of SBI? LESS PAPER WORK 3% (60) ATTRACTIVE INTEREST RATE 35% (700) TRANSPARENCY 20% (400) SIMPLE AND FAST PROCESSING 2% (40) LONGER REPAYMENT PERIOD 40% (800) TOTAL NO. OF PEOPLE 2000 39
  • FEATURES LIKE BY CUSTOMER 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% LESS PAPER WORK ATTRACTIVE TRANSPARENCY SIMPLE & FAST LONGER INTEREST RATE PROCESSING REPAYMENT PERIODMost of the people like the attractive interest rate & longer repayment period. Its easier forpeople to repay the whole loan amount with its interest with low interest rate and with longerrepayment period. 40
  • Findings Suggestion & Recommendation Conclusion PROJECT Findings: From this project it is found that SBI advance product having the 1st place in the market at Bhubaneswar, there is a great opportunity to compete with ICICI Bank & to retain its customer by fulfilling the requirement of customer in SBI advance product. It has been observed that approximately 85% correspondents are using advance product of SBI and 15% are not using any type of advance product of SBI in Bhubaneswar. All of SBI customers are satisfied with the services provided by the bank. Many of these customers satisfied with the low interest rate and longer repayment period of the advance product. Most of the customers at Bhubaneswar prefer to take loan from SBI. 41
  • Approximately 43% of advance product users said that the service of SBI in advance product is excellent. A response from customer care is so clear & good. Many customers have no time to call customer care so that they are not able to know about the service & features of SBI advance product. Most customers are shifted from other banks advance product to SBI because of hidden charges, high interest rate, less repayment period. Government employees are more concern than private employees for advance product.REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT: LESS PAPER WORK ATTRACTIVE INTEREST RATES TRANSPARENCY SIMPLE & FAST PROCESSING LONGER REPAYMENT PERIOD QUICK PROCESSING Suggestion & RecommendationRecommendation: Customer awareness programme is required so that more people should attract towards advance product. If there are any kind of hidden charges than that must disclose to customer before giving loan to them. SBI must take some steps so that customers can get their loan in time. Like phone verification by customer care that one customer is got their loan on time or not .It must be before a certain date so necessary steps can be taken. 42
  • SBI should more concern about physical verification rather than phone verification so it will avoid fraud or cheating. Advance product selling agents must not give any type of wrong information regarding advance product. For the better service new offers would be require. SBI customer care should more concern about the fastest settlement of customer problems. Before deducting or charging any monetary charge SBI must consult with customer. Agents should be trained, well educated & proper trained to convince the people about different advance product. It is the duty of the bank to disclose all the material facts regarding advance product, like interest charged, repayment period, other types of charges, etc. Special scheme should be implemented to encourage both customer and agents. The bank should increase the period for repayment of loan. SBI should more focus on Retaining existing customers. SBI must focus on Segmentation based on customer knowledge Product offering based on customer demand. SBI must take feedbacks of customers regarding features & services.Suggestions given by the consumers at the time of survey: There is more time period for repayment of education loan. ( Namrata Das ) Education loan should be providing to private college also which is not under AICTE or any kind of University. ( Pinaki Bal ) SBI should take steps to solve customer problems immediately. ( Gopinath Mahapatra ) 43
  • Agents should be trained, well educated & proper trained to convince the people about different advance product. (P.Anish Nath) Loan sanction date should be according to customer convenient. (Joytirmaya Behera) A customer awareness programme should be taking place in rural area.ConclusionFrom the analysis part it can be conclude that customers have a good respond towards SBIadvance products in Bhubaneswar. SBI is in 1st position having large number of customers &providing good services to them. The bank has a wide customer base, so the bank shouldconcentrate on this to retain these customers. 44
  • In present scenario SBI is the largest advance product issuer in India. Within a very short periodof time the achievement made by SBI is excellent, what a normal bank cannot expect, but it isbeing done by SBI. It happens due to employee dedication towards the organization, fastestgrowing Indian economy, & brand image.To be the largest advance product issuer, SBI should focus on- Launch Innovative product Customized advance products Better customer services Fastest customers problem solving techniques Customer retentionApart from all the above, SBI believe in providing good customer services to their customerswhich is a key factor for success in future. 45
  • QuestionnaireName - _____________________________________Occupation-__________________________________Contact Detail -_______________________________Q. On which bank you depend for your regular transaction? a) SBI b) ICICI Bank c) HDFC Bank 46
  • d) Other Bank, Specify (_____________)Q. Are you aware of products & services provided by SBI? a) YES b) NOQ. If yes are you aware of the advance products (Loan segments) of SBI? a) YES b) NOQ. Which bank you prefer for taking loans? a) SBI b) ICICI Bank c) HDFC Bank d) Other Bank, Specify (_____________)Q. If you prefer SBI for taking loan than what influence you to take Loan from SBI? _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.Q. Which loan product of SBI you have used? a) Home Loan b) Education Loan c) Car Loan d) Personal Loan e) Other Loans, Specify ( ______________ )Q. What do you feel about the services providing by SBI in advance product? a) Bad b) Satisfactory c) Good d) Excellent 47
  • Q. Which features you like most in Loan segments of SBI? a) Less paper work b) Attractive interest rate c) Transparency d) Simple & fast processing e) Flexibility to choose an EMI base loan or an overdraft f) Longer tenure lone for ease of repayment g) Specially design product for self employed h) Any other feature, specify ( _____________ )Q. Any suggestion you want to give for the betterment of SBI advance product.___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________. 48
  • Bibliography:Text Books:Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed.New Jersey: Prentice HallWilson A. (2003), Marketing Research: An Integrated Approach 49
  • Naresh Ku. Malhotra, Marketing Research: An Applied Orientation, Fifth EditionInternet: 50