TRAINING REPORT

ON

CONSUMER SATISFACTION TOWARDS

BANK DIGITALIZATION WITH SPECIAL
REFERENCE TO SBI BANK
Submitted to:
Satyug Darshan Institute of Engineering and Technology
By:
SONAL KALRA
Batch 2015 – 2018
In Partial Fulfillment of
Bachelor Of Business Administration (IIFSB)
MAHARSHI DAYANAND UNIVERSITY
ROHTAK (HARYANA)
(November, 2017)

SATYUG DARSHAN INSTITUTE OF ENGINEERING

AND MANAGEMENT
 DECLARATION

I, Ms. Sonal Kalra hereby declare that this summer training report is the record of authentic
work carried out by me during the period from 2016 to 2017 and has not been submitted to any
other University or Institute for the award of any degree / diploma etc.

(Signature)
SONAL KALRA

Date:
 ACKNOWLEDGEMENT

This is to certify that Ms. Sonal Kalra of Satyug Darshan Institute of Engineering and
Technology has successfully completed the project work title “CONSUMER SATISFACTION
TOWARDS BANK DIGITIZATION WITH SPECIAL REFERENCE TO SBI BANK ” in
partial fulfillment of requirement for the completion of Bachelor in Business Administration
(BBA IIFSB) course as prescribed by the Maharshi Dayanand University, Rohtak,
(HARYANA).

This project report is the record of authentic work carried out by him/her during the period from
------- to -------. He / She has worked under my guidance.

(Signature)

Mrs. Sneha Sharma

Assistant Professor, BBA Department

Project Guide (Internal)

Date:

Counter signed by

(Signature)

Mr. Ravi Bakshi

Department Coordinator (BBA Department)

Date:
S.NO TITLE

CHAPTER – 1 INTRODUCTION

CHAPTER – 2 COMPANY PROFILE

REVIEW OF LITERATURE
CHAPTER – 3

RESEARCH METHODOLOGY
CHAPTER – 4

DATA ANALYSIS AND

CHAPTER- 5 INTERPRETATION

SUGGESTIONS AND
CHAPTER – 6 RECOMMENDATIONS

CHAPTER-7 CONCLUSION

CHAPTER-8 QUESTIONNAIRE

CHAPTER-9 BIBLIOGRAPHY
EXECUTIVE SUMMARY

State Bank of India (SBI) is a multinational banking and financial services company based in
India. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As
of December 2013, it had assets of US$388 billion and 17,000 branches, including 190 foreign
offices, making it the largest banking and financial services company in India by assets.

State Bank of India is one of the Big Four banks of India, along with ICICI Bank, Punjab
National Bank and Bank of Baroda.

The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding
in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian
Subcontinent. Bank of Madras merged into the other two presidencies banks—Bank of
Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the
State Bank of India. Government of India owned the Imperial Bank of India in 1955,
with Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008,
the government took over the stake held by the Reserve Bank of India.
CHAPTER – 1

INTRODUCTION
 BANK DIGITALIZATION
 Internet Banking
 Mobile Banking
 ATM Services
 Demat Services

INTERNET BANKING

www.onlinesbi.com, the Internet banking portal of our bank, enables its retail banking customers
to operate their accounts from anywhere anytime, removing the restrictions imposed by
geography and time. It's a platform that enables the customers to carry out their banking
activities from their desktop, aided by the power and convenience of the Internet.

Using Internet banking services, you can do the following normal banking transactions online:

· Funds transfer between own accounts.

· Third party transfers to accounts maintained at any branch of SBI

· Group Transfers to accounts in State Bank Group

 · Inter Bank Transfers to accounts with other Banks

· Online standing instructions for periodical transfer for the above

· Credit PPF accounts across branches

· Request for Issue of Demand Draft

· Request for opening of new accounts

· Request for closure of Loan Accounts

· Request for Issue of Cheque Book

Apart from these, the other salient value-added features available are:

· Utility bill payments

· Online Ticket Booking for travel by Road, Rail and Air

· SBILIFE, LIC and other insurance premia payments

· SBI and other Mutual funds Investments

· SBI and other Credit Card dues payments

· Tax Payment – Income, Service, State Govt

· Customs Duty Payment

· Online Share Trading (eZ-trade@SBI)

· Online Application for IPO

· Fee Payment to select educational institutions including IITs and NITs

Truly smart services to cover most of your banking transactions. All this and much more, from
your desktop.
All our branches are enabled for Internet Banking. Contact your branch for availing this service.
You can visit www.onlinesbi.com for downloading the registration form.

MOBILE BANKING:-

State Bank Freedom “ Your Mobile Your Bank”

Away from home, balance enquiries can be made and/or money sent to the loved ones or bills
can be paid anytime 24x7!!! That is what State Bank FreedoM offers - convenient, simple,
secure, anytime and anywhere banking.

1. Mobile Banking Service over Application/ Wireless Application Protocol (WAP)

The Mobile Banking Application is available for java, Blackberry, Android, i-phones and
Windows mobile phones. The service can also be availed via WAP on all phones with GPRS
connection.

The following services can be availed through the Mobile Banking application and WAP:
  Funds transfer (within and outside the bank)

 Immediate Payment Services (IMPS): Click here for details.

 Enquiry services (Balance enquiry/ Mini statement)

 Demat Account Services

 Requests (Cheque book request/Generate OTP)

 Bill Pay (Utility bills, credit cards, Insurance premium), Donations, Subscriptions

 Top up / Recharge (Mobile /DTH /MobiCash wallet Top up)

 M Commerce (Merchant payments, SBI life insurance premium)

Business Rules

a. All Current/ Savings Bank Account holders in P segment and proprietary concerns in
SME segment are eligible.

b. Transaction limit per day is Rs. 50,000/- with a calendar month limit of Rs. 2,50,000/-

c. Service available over all telecom service providers.

d. The Service is free of charge. SMS/GPRS cost will be borne by the customer.

2. Mobile Banking Service over SMS:

The service is available on all phones. You can send keywords as SMS to 9223440000. Click
here for the list of keywords. Ordinary SMS charges are applicable.

The following services can be availed through SMS:

· Enquiry Services (Balance Enquiry/Mini Statement)

· Prepaid Mobile / MobiCash wallet Top up

· DTH Recharge

· IMPS Fund transfer – (Mobile number & MMID and Account Number & IFS
Code)
 · Change MPIN

· IMPS Merchant payments

Business Rules

a. All Current/ Savings Bank Account holders in P segment are eligible.

b. Transaction limit per day is Rs. 1,000/- with a calendar month limit of Rs. 5,000/- .
However, customers desiring to transact up to Rs. 5000/- per day or Rs 25,000/- per
month may do so after obtaining a One Time Password (OTP).

c. Service available over all telecom service providers.

d. The Service is free of charge. SMS cost will be borne by the customer.

e. As a precaution, Customers are requested to delete all the messages sent to the number
9223440000, once the response for their request has been received.

3. Mobile Banking Service over USSD (Unstructured Supplementary Service Data)

The service is available on all phones except CDMA phones. Downloading of application is not
required. Subscribers have to dial *595# to avail the service.

The following services can be availed through USSD:

· Enquiry Services (Balance Enquiry/Mini Statement)

· Mobile Top up

· Funds Transfer (within Bank)

Business Rules

All Current/ Savings Bank Account holders in P segment are eligible.

a. Transaction limit per day is Rs. 1,000/- with a calendar month limit of Rs. 5,000/- .

b. The Service is available for subscribers of select telecom operators only.

c. The Service is free of charge. USSD session charges will be borne by the customer.
 d. The service is session based and requires a response from the user within a reasonable
time.

ATM SERVICES :-

STATE BANK ATM SERVICES

State Bank offers you the convenience of 43,000+ ATMs in India, the largest network in the
country and continuing to expand fast! This means that you can transact free of cost at the ATMs
of State Bank Group using any State Bank ATM-cum-Debit Card (This includes the ATMs of
State Bank of India as well as the Associate Banks - namely, State Bank of Bikaner & Jaipur,
State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of
Travancore.)

KINDS OF CARDS ACCEPTED AT STATE BANK ATMs

Besides all debit cards issued by State Bank of India, following cards are also accepted at State
Bank ATMs:

1) State Bank Credit Card

2) Cards issued by other banks displaying Maestro, Master Card, Cirrus, VISA, VISA
Electron, and Rupay logos

3) All Debit/ Credit Cards issued by any bank outside India displaying Maestro, Master Card,
Cirrus, VISA and VISA Electron logos
State Bank ATM-cum-Debit Cards:

India's largest bank is proud to offer you a range of debit cards to suit your needs. Apart from
access to our ATM network these cards can be used at merchant establishments. Click here to
know about card offerings.

ATM Access and enhanced convenience

v Get a State Bank ATM-cum-Debit card and transact for FREE at any of our 43,000+
ATMs in India. Click herefor the list of ATMs in India or to find the nearest ATM you
are looking for!
v You can also transact at over 1 lakh ATMs of other banks linked to the National Financial
Switch. As per RBI guidelines, you are entitled to 5 FREE transactions (Financial and
Non-Financial) in a calendar month (for Savings Bank account holders only).
v You can also use your debit card to make payments for purchases at more than 6 lakh
merchant establishments viz. shops, restaurants, shopping malls, hotels, petrol pumps and
many other outlets.

ATM Features:

Use the ‘Banking’ option on State Bank ATMs and enjoy a host of services:

Cash Withdrawal

The most popular service on our ATMs enables customers to withdraw up to a daily limit of Rs.
40,000/- (limit on Classic Debit Card. Higher value cards permit daily withdrawal limits of up to
Rs. 1 lakh per day)

Fast Cash

A service which enables you to withdraw your preferred amounts with just a touch. The options
in the denomination of 100, 200, 500, 1000, 2000, 3000, 5000, 10,000 are available.
Pin Change

Use this service to change your password at regular intervals.

Balance Enquiry

Expecting an inflow of funds in your account? Use this service to check the current available
balance in your account. This service is also available on the main option screen after swiping
your card. You can also ‘Go Green’ by selecting the view option as the balance is displayed on
the screen else get a transaction receipt by selecting print.

Ministatement

Keep track of the transactions in your account by availing this service. Mini-statement gives you
an insight into the last 10 transactions in your account.

Use the ‘Transfer option on State Bank ATMs and avail of:

Card to Card Transfer

Send cash in a flash from one SBI Debit Card to the other. Using this free and easy service, you
can transfer up to Rs. 30,000/- per day instantly to your loved ones. All you need is your SBI
debit card, your pin and the beneficiary’s debit card number. (Per transaction limit of Rs.
15,000/-).

Credit Card Payment (Visa)

Use this service to pay the bill of any Visa credit card.

Use the ‘Services’ option on State Bank ATMs and avail of:

Credit Card Payment

Make a paperless payment of your SBI credit card bill.

SBI Life Premium Payment

Pay your SBI Life insurance premium payment using any of our ATMs.

Mobile Top-up

Talk non-stop and recharge your mobile prepaid connection from any of our 43000+ ATMs. A
popular service amongst customers, it ensures you never run out of time to catch up with your
dear ones over the mobile network.

Cheque Book Request

Order your cheque book without visiting the branch or filling in any transaction
slips. Remember to update your registered address in the branch as the cheque book will be
delivered at the address registered in the branch.

Trust Donation

Make a donation to your favourite charity. For example, (a) Vaishno Devi (b) Shirdi Saibaba (c)
Gurudwara Takht Saheb, Nanded (d) Tirupati (e) Sri Jagannath Temple, Puri (f) Palani, Tamil
Nadu (g) Kanchi Kamakoti Petam, Tamil Nadu (h) Ramakrishna Mission, Kolkata (i)
Mantralaya, Andhra Pradesh (j) Kashi Vishwanath, Banaras (k) Tulja Bhavani, Mumbai (l)
Mahalakshmi, Mumbai and many more.....

Bill payment

Use our ATMs to pay your utility bills viz. Bangalore/Hubli/Chamundeshwari Electricity Supply
Company, Karnataka and Chattisgarh State Electricity Board.

Credit Card Payment (Visa)

Use this service to pay the bill of any Visa credit card.
Use the ‘Services’ option on State Bank ATMs and avail of:

Credit Card Payment

Make a paperless payment of your SBI credit card bill.

SBI Life Premium Payment

Pay your SBI Life insurance premium payment using any of our ATMs.

Mobile Top-up

Talk non-stop and recharge your mobile prepaid connection from any of our 43000+ ATMs. A
popular service amongst customers, it ensures you never run out of time to catch up with your
dear ones over the mobile network.

Cheque Book Request

Order your cheque book without visiting the branch or filling in any transaction
slips. Remember to update your registered address in the branch as the cheque book will be
delivered at the address registered in the branch.

Trust Donation

Make a donation to your favourite charity. For example, (a) Vaishno Devi (b) Shirdi Saibaba (c)
Gurudwara Takht Saheb, Nanded (d) Tirupati (e) Sri Jagannath Temple, Puri (f) Palani, Tamil
Nadu (g) Kanchi Kamakoti Petam, Tamil Nadu (h) Ramakrishna Mission, Kolkata (i)
Mantralaya, Andhra Pradesh (j) Kashi Vishwanath, Banaras (k) Tulja Bhavani, Mumbai (l)
Mahalakshmi, Mumbai and many more.....
Bill payment

Use our ATMs to pay your utility bills viz. Bangalore/Hubli/Chamundeshwari Electricity Supply
Company, Karnataka and Chattisgarh State Electricity Board.
CHAPTER – 2

COMPANY PROFILE
The business of the banks was initially confined to discounting of bills of exchange or other
negotiable private securities, keeping cash accounts and receiving deposits and issuing and
circulating cash notes. Loans were restricted to Rs. 1Lakh and the period of accommodation
confined to three months only. The security for such loans was public securities, commonly
called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and
no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium,
indigo, salt woolens, cotton, cotton piece goods, mule twist and silk goods were also granted but
such finance by way of cash credits gained momentum only from the third decade of the
nineteenth century. All commodities, including tea, sugar and jute, which began to be financed
later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by
the borrower in 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 property was, however,
forbidden.

Indians were the principal borrowers against deposit of Company's paper, while the business of
discounts on private as well as salary bills was almost the exclusive monopoly of individuals
Europeans and their partnership firms. But the main function of the three banks, as far as the
government was concerned, was to help the latter raise loans from time to time and also provide
a degree of stability to the prices of government securities.

Main Branch of SBI in Mumbai.

Operations:-

SBI provides a range of banking products through its network of branches in India and overseas,
including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal
Offices that are located at important cities throughout India.

Domestic presence:-

SBI had 14,816 branches in India, as on 31 March 2013, of which 9,851 (66%) were in Rural and
Semi-urban areas. In the financial year 2012-13, its revenue was INR 200,560 Crores (US$ 36.9
billion), out of which domestic operations contributed to 95.35% of revenue. Similarly, domestic
operations contributed to 88.37% of total profits for the same financial year.

International presence:-

As of 28 June 2013, the bank had 180 overseas offices spread over 34 countries. It has branches
of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg,
London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and
Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative
offices in Bhutan and Cape Town. It also has an ADB in Boston, USA.

The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches,
four in the Toronto area and three in the Vancouver area.

SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank:
State Bank of India (Mauritius). SBI (Mauritius) has 15 branches in major cities/towns of the
country including Rodrigues.

In 1982, the bank established a subsidiary, State Bank of India (California), which now has ten
branches – nine branches in the state of California and one in Washington, D.C. The 10th branch
was opened in Fremont, California on 28 March 2011. The other eight branches in California are
located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and
Bakersfield.
 The Israeli branch of the State Bank of India located in Ramat Gan

In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian Merchant
Bank and received permission in 2002 to commence retail banking. It now has five branches in
Nigeria.

In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches throughout the country. In
Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest.
In Indonesia, it owns 76% of PT Bank Indo Monex.

The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin.

In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8
million in October 2005.

Associate banks:-

SBI has five associate banks; all use the State Bank of India logo, which is a blue circle, and all
use the "State Bank of" name, followed by the regional headquarters' name:

 State Bank of Bikaner & Jaipur

 State Bank of Hyderabad
  State Bank of Mysore
 State Bank of Patiala
 State Bank of Travancore
 State Bank of India

Earlier SBI had seven associate banks, all of which had belonged to princely states until
the government nationalised them between October 1959 and May 1960. In tune with the
first Five Year Plan, which prioritised the development of rural India, the government
integrated these banks into State Bank of India system to expand its rural outreach. There
has been a proposal to merge all the associate banks into SBI to create a "mega bank" and
streamline the group's operations.
The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven to
six. Then on 19 June 2009 the SBI board approved the absorption of State Bank of
Indore. SBI holds 98.3% in State Bank of Indore. (Individuals who held the shares prior
to its takeover by the government hold the balance of 1.77%.)
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets will inch very close to the 10
trillion mark (10 billion long scale). The total assets of SBI and the State Bank of
Indore stood at 9,981,190 million as of March 2009. The process of merging of State
Bank of Indore was completed by April 2010, and the SBI Indore branches started
functioning as SBI branches on 26 August 2010.

Non-banking subsidiaries

Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

 SBI Capital Markets Ltd

 SBI Funds Management Pvt Ltd
 SBI Factors & Commercial Services Pvt Ltd
 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 SBI DFHI Ltd
  SBI Life Insurance Company Limited
 SBI General Insurance

In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the
remaining capital), to form a joint venture life insurance company named SBI Life Insurance
company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its
headquarters in Mumbai.

Other SBI service points

SBI has 27,000+ ATMs and SBI group (including associate banks) has 32,752 ATMs. SBI has
become the first bank to install an ATM at Drass in the Jammu & Kashmir Kargil region. This
was the Bank's 27,032nd ATM on 27 July 2012.

Logo and slogan

 The logo of the State Bank of India is a blue circle with a small cut in the bottom that
depicts perfection and the small man the common man - being the center of the bank's
business. The logo came from National Institute of Design (NID), Ahmedabad and it was
inspired by Kankaria Lake, Ahmedabad.
 Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A
BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE
NATION BANKS ON US".

Employee
 SBI is one of the largest employers in the country having 228,296 employees as on 31
March 2013, out of which there were 46,833 female employees (21%) and 2,402 disabled
employees (1%). On the same date, SBI had 43,550 Schedule Caste (19%) and 16,764
Schedule Tribe (7%) employee. The percentage of Officers, Assistants and Sub-staff was
35%, 48% and 17% respectively on the same date.
Hiring drive: The bank hired 20,682 Assistants in FY 2012-13, from over 3 million
 applicants, for expansion of the branch network and to mitigate staff shortage,
particularly at rural and semi-urban branches. In the same year, it recruited 847
probationary officers from around 1.7 million candidates who applied for an officer
position.
Staff productivity: As per its Annual Report for FY 2012-13, each employee contributed
to revenues of INR 94.4 million and net profit of INR 0.65 million.

Recent awards and recognitions

 SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine
in a 2014 ranking.
 SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest
corporations for the year 2012.
 SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top
Banks 2013'.
 State Bank of India won three IDRBT Banking Technology Excellence Awards 2013 for
“Electronic Payment Systems”, “Best use of technology for Financial Inclusion”, and
“Customer Management & Business Intelligence” in the large bank category.
 SBI won National Award for its performance in the implementation of Prime Minister’s
Employment Generation Programme (PMEGP) scheme for the year 2012.
 Best Online Banking Award, Best Customer Initiative Award & Best Risk Management
Award (Runner Up) by IBA Banking Technology Awards 2010
 SKOCH Award 2010 for Virtual corporation Category for its e-payment solution
 SBI was the only bank featured in the "top 10 brands of India" list in an annual survey
conducted by Brand Finance and The Economic Times in 2010.
 The Bank of the year 2009, India (won the second year in a row) by The Banker
Magazine
 Best Bank – Large and Most Socially Responsible Bank by the Business Bank Awards
2009
 Best Bank 2009 by Business India
 The Most Trusted Brand 2009 by The Economic Times.
  SBI was named the 29th most reputed company in the world according to Forbes 2009
rankings
 Most Preferred Bank & Most preferred Home loan provider by CNBC
 Visionaries of Financial Inclusion By FINO
 Technology Bank of the Year by IBA Banking Technology Awards

SBI was 11th most trusted brand in India as per the Brand Trust Report 2010.

COMPETITORS

Competitors and other players in the field:-

Top Performing Public Sector Banks

Andhra Bank
Allahabad Bank
Punjab National Bank
Dena Bank

Vijaya Bank

Top Performing Private Sector Banks

HDFC Bank

ICICI Bank
AXIS Bank
Kotak Mahindra Bank
Centurion Bank of Punjab

Top Performing Foreign Banks

Citibank
Standard Chartered
HSBC Bank
ABN AMRO Bank
American Express
SWOT ANALYSIS OF SBI:

Strength/ Opportunities:

The growth for SBI in the coming years is likely to be fuelled by the following factors:

• Continued effort to increase low cost deposit would ensure improvement in NIMs and hence
earnings.

• Growing retail & SMEs thrust would lead to higher business growth.

• Strong economic growth would generate higher demand for funds pursuant to higher corporate
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 growth
prospects of the bank going forward.

• Stiff competition, especially in the retail segment, could impact retail growth of SBI and hence
slowdown in earnings growth.

• Contribution of retail credit to total bank credit stood at 26%. Significant thrust on growing
retail book poses higher credit risk to the bank.

• Delay in technology up gradation could result in loss of market shares.

• Management indicated a likely pension shortfall on account of AS-15 to be close to Rs50bn.

• Slow down in domestic economy would pose a concern over credit off-take thereby impacting
earnings growth.
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 Against
Citizens Property
Savings
Account

 Fixed  Personal  Travel Card  SBI Gold Master

Deposits Loans cards

 SecurityDep  Car Loan  Debit Cards  Your City Your

osits Cards

 Recurring  Loans  Commercial

Deposits against Cards
Securities

 Tax-Saver  Two  Corporate  Partnership Cards

Fixed Deposit Wheeler Cards

 Salary  Pre-  Prepaid Card

Account approved
Loans

 Advantage  Retail Asset  Purchase Card  SBI Employee Cards

Woman
Savings
 Account

 Rural Savings  Farmer  Distribution

Account Finance Cards

 People's  Business  Business Card  SBI Advantage

 Savings Installment Cards
Account Loans

 Freedom  Flexi Cash  Merchant

Savings Services
Account

PASSBOOK:-
Chapter-3

REVIEW OF LITERATURE
The banking sector in India has made remarkable progress since the economic reforms in
1991.new private sector banks have brought the necessary competition into the industry a n d
spearheaded the changes towards higher utilization of technology, improved
customer service and innovative products. Customers are now becoming increasingly
conscious of their rights and are demanding more than ever before. The recent trends show that
most banks are shifting from a “product-centric model” to a “customer-centric model” as
customer satisfaction has become one of the major determinants of business growth. In
this context, prioritization of preferences and close monitoring of customer
satisfaction have become essential for banks. keeping these in mind, an attempt has
been made in this study to analyze the factors that are essential in influencing the
investment decision of the customers of the public sector banks. For this purpose, Factor
Analysis, which is the most appropriate multivariate technique, has been used to identify the
groups of determinants. Factor analysis identifies common dimensions of factors
from the observed variables that link together the seemingly unrelated variables and provides
insight into the underlying structure of the data.

Customer service is the provision of service to customers before, during and after a purchase.
According to Turban et al. (2002), "Customer service is a series of activities designed to
enhance the level of customer satisfaction – that is, the feeling that a product or service has met
the customer expectation."

Customer satisfaction in the banking industry play a vital role to create a healthy business status
being services based industry. In any services based industry customer service is at highest
priority. Customer service can be provided by well planned self-service. In banking industry
customer are more directly linked with the bank’s personnel for any kind of services or product.
Therefore, banks should always focus on training its front desk staff to provide quality service
knowing their expectation and wants.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the
state of satisfaction will vary from person to person and product/service to product/service. The
state of satisfaction depends on a number of both psychological and physical variables which
correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction
can also vary depending on other options the customer may have and other products against
which the customer can compare the organization's services.

At the same time, several banking institutions are experiencing increasing level of retail
customer dissatisfaction.

Research suggests that customer dissatisfaction is still the major reason of bank customers’
switch to other banks. This dissatisfaction could be because of a variety of reasons. Excellent
service quality is not an optional competitive strategy which may, or may not, be adopted to
differentiate one bank from another: today it is essential to corporate profitability and survival.
The connection between service quality and corporate profitability is now seen to depend on high
levels of customer satisfaction, the successful targeting of “quality” customers and the retention
of those customers.

The literature review prepared for this study on service quality and satisfaction of customers in
all banks (both public and private) situated in India reflects the findings of various professionals
based on their studies.

In order to retain the valued customer, it required to enhance the customer satisfaction . The
study explained the concept of customer satisfaction, beginning from basic principles. Assurance
services in Government Banks better when compared to Private Banks. However the level of
customer satisfaction in private banks is more than government banks . The nationalised bank
have to improve employee behaviour, ambience infrastructure, whereas the private and
nationalised banks have to concentrate in the areas such as lower charges, more accessibility and
good communication . The perception of customers towards the service of private banking sector
is good when compared to the customers of public sector bank . The constructs such as
customer’s service, easiness to use self-service technology and reliability have a constructive
impact on the satisfaction of customers and faithfulness . Constructs such as reliability,
responsiveness, fulfillment, privacy and security have a significant association towards the
customer satisfaction in internet banking . Out of the five dimensions, responsiveness found to be
significant in predicting overall satisfaction with regard to banking service .

The customers satisfied with the quality of staff dimension, whereas, maintaining accounts and
handling of enquires dimensions did not meet their expectations .Empathy dimension of the
service quality showed the highest significant relationship with customer satisfaction followed
by assurance dimension . Among the five dimensions the bank has to concentrate on reliability
dimension . A positive correlation with customer satisfaction was displayed by all the five
dimensions of the service quality . Among the five constructs reliability accountable for
customers’ satisfaction followed by responsiveness, empathy and tangibility . All the constructs
of the service quality positively and significantly correlated with customers’ satisfaction . Banks
should concentrate on the following dimensions to satisfy the customers: a) Enjoyment b)
Customization c) Design and d) Functionality .

With the extensive technology innovation and telecommunications, we have

seen new financial distribution channels increasing rapidly both in numbers

and form, from ATMs, telephone banking to PC banking (Easingwood &

Storey, 1996), and Internet Banking is the latest in the series of technological

wonders of the recent past (Mols, 1999).

Following the boom of Internet, the Internet can no longer be considered a

“fad” or the preserve of “techies” and “computer nerds”. Commercial uses of

the Net have become the fastest growing part of the World Wide Web (WWW)

(Hamid et al, 2007). About the same time, Internet Banking was thought to

signal a revolution in banking distribution. Banks invested heavily in the

development of the Internet channels (Accenture, 2005). Internet Banking has

experienced explosive growth in many countries and has transformed

traditional banking practice (Mols, 1999). Inevitability, Internet Banking will

continue to revolutionize the current traditional banking industry and offers

more opportunity to meet better consumer services through enhanced

interaction, data mining and customization in the Internet Banking services

CHAPTER – 4

RESEARCH METHODOLOGY

·
Research objectives

 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 gives 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 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.

SCOPE OF THE STUDY:-

The present study was undertaken to know the preference of the customer towards state bank of
India (SBI). The problem of the customer is they are not aware of the services provided by their
bank. The study also force on the customer perception that how the banking services can be
improved. In my study I have used both primary sources of data as well as secondary sources of
data.

 The study has been conducted on behalf of ―STATE BANK OF INDIA.

 The study is confined to the Mumbai region.

 The study covers the service providers and users of ―STATE BANK OF INDIA.

 The study has put forward the Customers as well as acceptability behavior for the
services.

 The scope of the study is to find out the ―Customer Satisfaction

Limitations of the Study:-

The study report consists of few limitations:-

 The report has been conducted within a limited time frame.

 The study is self financed.

 The study is limited to the customer of Mumbai only.

 Only selected Branches and Banks have been considered for the study.

 Samples were selected conveniently.

 The sample size does not represent the total population.

 The sample of size is limited to 30 only and the sample size may not represent whole
market.
Research Methodology

Research methodology is a methodology for collecting all sorts of information & data pertaining
to the subject in question. The objective is to examine all the issues involved & conduct
situational analysis. The methodology includes the overall research design, sampling procedure
& fieldwork done & finally the analysis procedure. The methodology used in the study
consistent of sample survey using both primary & secondary data. The primary data has been
collected 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 100 people was taken into study, and their data was collected.

 Sampling Technique:

To study the Project, a Simple Sampling technique is used.

 Data Collection:

Collection of data is done by Secondary Data & through Questionnaire

i.e., Primary data was collected through Questionnaire.

 Data Analysis:

After data collection, I analyzed customer’s 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 tool i.e 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.
COLLECTION OF DATA:-

 The data can be collected from primary and secondary sources. The basic
premises of my study is primary data .Convenient sample that was
representative of the target market was chosen, the respondents were
contacted personally and the instrument used for collecting data is
questionnaire.

Statistical Data can be classified into two categories:-

 1) Primary Sources
 2) Secondary Sources

Primary Data:-

 Primary data is collected by using the questionnaire method.

Secondary Data:-

 The Main sources of Secondary data are combination of information from

the internet and books of the related topic.
CHAPTER – 6
DATA ANALYSIS AND INTERPRETATION
GRAPHICAL REPRESENTATION OF DATA AND INTERPRETATIONS:

As per questionnaire and market surveys I have find out different responses from different
people. According to their responses I analyze the findings and draw certain remarks.

QUESTIONNAIRE

Q1.In which bank , you have an account?

a) SBI
b) ICICI
c) HDFC
d) OTHER

PARTICULARS PERCENTAGE

SBI 60 %

ICICI 33 %
HDFC 5%
OTHER 2%
TOTAL NO. OF PEOPLE 100
 RESPONSES OF PEOPLE IN %
70%
60%
60%

50%

40%
33%
30% % OF CUSTOMER RESPONSES

20%

10% 5% 2%
0%
SBI ICICI HDFC OTHER

FIG:1

INTERPRETATIONS:

It has been observed that approximately 60% of correspondents are using the service of SBI for
their daily transaction because people are finding more satisfying. Around 33% of people are
using ICICI Bank for their transaction and only 5% & 2% of people are using HDFC & other
Bank services. It also shows that SBI have the highest market position as per my sample.
Q2. Are you aware of products & services provided by SBI?

a) YES
b) NO

YES 85%

NO 15%
Total No. of People 100

90% YES, 85%

80%

70%

60%

50%

40%

30%

20% NO, 15%

10%

0%
YES NO

FIG:2

INTREPRETATION:-

From the above data it is clear that most of the customers (around 85%) know product &
services of SBI because they are more aware about the SBI bank. The rest 15% have the idea
about the product they are using. In this 15% most of the people are from typical rural area
(Farmers).
Q3. If yes are you aware of the advance products of SBI?

YES 95%

NO 5%

TOTAL NO. OF PEOPLE 100

% OF PEOPLE
100% 95%
90%
80%
70%
60%
50%
% OF PEOPLE
40%
30%
20%
10% 5%
0%
YES NO

FIG:3

INTREPRETATION:-

It is clear that most of the people are aware about the advance product of SBI because of the
awareness of the SBI bank. Almost all the 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?

SBI 62%

ICICI 12%

HDFC 2%

OTHER 24%

TOTAL NO. OF PEOPLE 100

Sales
70%
62%
60%

50%

40%

30%
Sales
24%
20%
12%
10%
2%
0%
SBI ICICI HDFC OTHER

FIG:4

INTREPRETATION:- According to my sample size 85% of people prefer SBI for loan
product, but some people prefer ICICI, HDFC or OTHER Bank for loan because they are
working with that bank & it is easier for them to get loan from their bank & it easier for them to
pay the interest because it is less as compare to other bank because they are the employee of that
bank.
Q.5 Which loan product of SBI you have used?

HOME LOAN 47%

EDUCATIONAL LOAN 20%

CAR LOAN 15%

PERSONAL LOAN 10%

OTHER 8%

TOTAL NO. OF PEOPLE 100

Sales
50% 47%
45%
40%
35%
30%
25%
20%
20% Sales
15%
15%
10% 8%
10%
5%
0%
HOME LOAN EDUCATIONAL CAR LOAN PERSONAL OTHER
LOAN LOAN

FIG:5

INTREPRETATION:-

From the sample size 85% of people are using the SBI loan product. From the 1800 people 47%
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 like both
car & educational loan and home & car loan. 10% of people took personal loan because people
are finding SBI more trustworthy.
Q6. What do you feel about the services providing by SBI in advance product?

Not satisfied 0%

Satisfactory 2%

Good 55%

Excellent 43%

TOTAL NO. OF PEOPLE 100

CUSTOMER PERCEPTION TOWARDS THE SERVICE PROVIDE

BY SBI IN ADVANCE PRODUCT
60% 55%
50% 43%
40%

30%
CUSTOMER PERCEPTION
20% TOWARDS THE SERVICE
PROVIDE BY SBI IN
10% ADVANCE PRODUCT
0% 2%
0%

FIG:6

INTREPRETATION From this it is clear that the service provide by SBI in its advance product
is good in between the customer. All of them satisfy with the product provide by SBI. 55% of
people said that the service provide by SBI is good because it is more relying & 43% said it is
excellent & just 2% of people said that it is satisfactory.
Q7. Which features you like most in Loan segments of SBI?

LESS PAPER WORK 3%

ATTRACTIVE INTEREST RATE 35%

TRANSPARENCY 20%

SIMPLE AND FAST PROCESSING 2%

LONGER REPAYMENT PERIOD 40%

TOTAL NO. OF PEOPLE 100

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
PERIOD

FIG:7

INTREPRETATION Most of the people like the attractive interest rate & longer repayment
period. It’s easier for people to repay the whole loan amount because its interest rate is low and
longer repayment period.
Q8. Service satisfaction towards custumers?

22%
ATM
LOAN
40%
EARLY CHEQUE CLEARANCE

7% NET BANKING
PHONE BANKING

7% INTEREST
ANY OTHER
10%
7%
7%

FIG:8

INTERPRETATION

When question was asked which service satisfies you most then 40% said its ATM because it is
easy to use and nearby their location.10% Think that is net banking is quite better. 7% are
satisfied with about interest rate which is offered by the bank. 7%think cheque get clear very
early and 7% think it is quite easy to take loan from SBI bank .7 % think its phone banking
service is really good and rest of the 22 % satisfied with its other services.
Q9. Are you satisfied with your financial transactions with the bank?

10%

36%
VERY SATISFIED (11)
24%
SATISFIED (9)
SOMEWHAT SATISFIED (7)
DISSATISFIED (3)

30%

FIG :9

INTERPRETATION

According to my survey 36% of respondent said that they are very satisfied because with the
financial transactions of the bank while 30% said that they are happy with its services. 24% think
its services are quite satisfied while remaining 10% are not satisfied with its services.
Q10. When you think of your bank what comes first in your mind?

7%
13%

17%
PERSONALIZED SERVICE
WIDE BRANCH NETWORK
CUSTOMER SERVICE
COMPUTERIZED BANKING

63%

FIG:10

INTERPRETATION

From the above table 40% respondent (no. of respondent are 12) of its customer are able to use
internet banking service while 60% (no. of respondent are 18) of respondent are not able to use.

Because SBI is the wide branch network and everyone satisfy with the SBI bank.
Q11. Are you satisfied with online banking?

17%

YES
NO
CANNOT SAY
25% 58%

FIG:11

INTERPRETATION

According to survey 58% people are satisfied with its services because SBI has its best services
in online banking. While 25% are not satisfied and remaining 17% are confused .
Findings:

 From this project it is found that SBI advance product having the 1st place in the market.
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 Bhilai prefer to take loan from SBI.
 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 bank’s 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
CHAPTER – 7

SUGGESTIONS AND RECOMMENDATIONS

Suggestion & Recommendation

Recommendation:

 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.
 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.

 Education loan should be providing to private college also which is not under AICTE or
any kind of University.
 SBI should take steps to solve customer problems immediately.
 Agents should be trained, well educated & proper trained to convince the people about
different advance product.
 Loan sanction date should be according to customer convenient.
 A customer awareness programme should be taking place in rural area.
CHAPTER – 8
CONCLUSION
Conclusion

From the analysis part it can be conclude that customers have a good respond towards SBI
advance products in Bhilai. 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 should concentrate on
this to retain these customers.

In present scenario SBI is the largest advance product issuer in India. Within a very short period
of time the achievement made by SBI is excellent, what a normal bank cannot expect, but it is
being done by SBI. It happens due to employee dedication towards the organization, fastest
growing 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 retention
Apart from all the above, SBI believe in providing good customer services to their customers
which is a key factor for success in future.
CHAPTER – 9
QUESTIONNAIRE
Questionnaire

Name - _____________________________________

Occupation-__________________________________

Contact Detail -_______________________________

Q. On which bank you depend for your regular transaction?

a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)

Q. Are you aware of products & services provided by SBI?

a) YES
b) NO
Q. If yes are you aware of the advance products (Loan segments) of SBI?

a) YES
b) NO
Q. Which bank you prefer for taking loans?

a) SBI
b) ICICI Bank
c) HDFC Bank
d) Other Bank, Specify (_____________)

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

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. Service satisfaction towards customers?

a) ATM
b) Loan
c) Net banking
d) Phone banking
e) interest
f) any other

Q. Are you satisfied with your financial transactions with the bank?

a) Very satisfied
b) Satisfied
c) Somewhat satisfied
d) dissatisfied

Q. When do you think of your bank what comes first in your mind?

a) Personalised service
b) Wide branch network
c) Customer service
d) Computerized banking

Q. Are you satisfied with online banking?

a) Yes
b) No
Q. Any suggestion you want to give for the betterment of SBI advance product.

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________________.
CHAPTER – 10

BIBLIOGRAPHY
Bibliography

Internet:

 www.google.co.in

 www.sbi.com

 www.slideshare.net

 WWW.WIKIPEDIA.COM

BOOKS

Research Methodology

Marketing research