Introduction:-

SBI stands for State Bank of India. It is a leading public sector bank in India in terms of assets,
deposits, profits, branches, employees, customers etc. Its origin dates back to the first decade
of the 19th century. It was formally established on July 1, 1955 by an act of Parliament. It is
headquartered in Mumbai, India. As of January 2018, Shri Rajneesh Kumar is the Chairman of
SBI. Today, it is ranked among top 50 global banks.

SBI is owned by Govt. of India which is the largest shareholder of SBI with around 62%
ownership or equity shares in SBI. It has more than 24000 branches in India and around 200
offices in more than 30 countries across the world. As of 31st March 2017, its assets valued
more than USD 500 billion and has more than 20% market share of the Indian banking sector.

Overview of SBI:-
The original name of the State Bank of India was Imperial Bank of India. The Imperial Bank
of India was formed in 1921 by amalgamating the three Presidency banks of Bengal, Bombay
and Madras. Prior to Independence, the Imperial Bank was handling the entire business and
banking transactions of the Government.

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Though the Reserve Bank of India had been established in 1935, it was undertaking only central
banking functions. Therefore, the Imperial Bank continued to handle Government transactions.
On the recommendations of the All India Rural Credit Survey Committee (1954), the
Government of India nationalised the Imperial Bank of India and renamed it as the State Bank
of India with effect from 1 July, 1955.

Further, eight banks of the former princely States were brought under the SBI as its subsidiaries
in 1959. They were State Bank of Bikaner, State Bank of Jaipur, State Bank of Patiala, State
Bank of Saurashtra, State Bank of Indore, State Bank of Hyderabad, State Bank of Mysore,
and State Bank of Travancore. In 1963, State Bank of Bikaner and State Bank of Jaipur were
merged as State Bank of Bikaner and Jaipur.

Evaluation of SBI:-
The roots of the State Bank of India lie in the first decade of the 19th century when the Bank
of Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of
Bengal was one of three Presidency banks, the other two being the Bank of
Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July

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1843). All three Presidency banks were incorporated as joint stock companies and were the
result of royal charters.

(Evaluation of SBI)

These three banks received the exclusive right to issue paper currency till 1861 when, with the
Paper Currency Act, the right was taken over by the Government of India. The Presidency
banks amalgamated on 27 January 1921, and the re-organised banking entity took as its
name Imperial Bank of India. The Imperial Bank of India remained a joint stock company but
without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On
1 July 1955, the Imperial Bank of India became the State Bank of India. In 2008,
the Government of India acquired the Reserve Bank of India's stake in SBI so as to remove any
conflict of interest because the RBI is the country's banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made
eight banks that had belonged to princely states into subsidiaries of SBI. This was at the time
of the first Five Year Plan, which prioritised the development of rural India. The government
integrated these banks into the State Bank of India system to expand its rural outreach. In 1963
SBI merged State Bank of Jaipur (est. 1943) and State Bank of Bikaner (est.1944).

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 State Bank of Bikaner & Jaipur)

SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI
acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of
Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram
Baldeo Bank, which had been established in 1916 in Gwalior State, under the small
moneylender, owned by the Maharaja Madhav Rao Scindia. The new bank's first manager was
Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120
branches. SBI was the acquirer as its affiliate, the State Bank of Travancore, already had an
extensive network in Kerala.

There was, even before it actually happened, a proposal to merge all the associate banks into
SBI to create a single very large bank and streamline 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.
On 19 June 2009, the SBI board approved the absorption of State Bank of Indore, in which SBI
held 98.3%. (Individuals who held the shares prior to its takeover by the government held the
balance of 1.7%.)

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 approached ₹10 trillion. The total
assets of SBI and the State Bank of Indore were ₹9,981,190 million as of March 2009. The
process of merging of State Bank of Indore was completed by April 2010, and the SBIndore
branches started functioning as SBI branches on 26 August 2010.
On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed
Chairperson of the bank. Mrs. Bhattacharya received an extension of two years of service to
merge into SBI the five remaining associate banks.

Objectives of State Bank of India:

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The State Bank of India has been established to operate on the normal commercial
principles, with the only difference that, unlike other commercial banks in the country,
it takes into consideration and responds in a progressively liberal manner the financial
requirements of cooperative institutions and small scale industries, particularly in the
rural areas of Industry.

The Main Objectives of the State Bank of India are:-

1. To have a strong commercial bank under the control and supervision of the Government.

2. To spread banking facilities in rural, semi-urban and metropolitan areas by opening 400 branches
within five years of its establishment. This policy of branch expansion has since been continued.

3. To help spread banking in rural areas for the purpose of encouraging and mobilising savings among
the ruralists and to provide credit to them.

4. To subscribe to the debentures of State Land Development Banks and to advance loans on their
security.

Ji5. To strengthen co-operative societies, help in the establishment of licensed warehouses arid co-
operative marketing societies.

6. To provide financial assistance to small, cottage and village industries.

7. To help other banks and strengthen the banking system.

8. To help the RBI in implementing its monetary and credit policies.

Function of SBI

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1. Central Banking Functions:
The SBI performs a number of functions on behalf of the Reserve Bank of India.

(a) It acts as the agent of the RBI where the latter has no branch,

(b) It receives money on behalf of the Central and State Governments and makes payments on their
behalf,

(c) It buys and sells securities on behalf of the Government and manages the public debt,

(d) It receives deposits from commercial banks and state cooperative banks and in turn lends to them,

(e) It provides remittance facilities to these banks.

(f) It rediscounts their bills of exchange,

(g) It acts as a clearing house at places where the RBI has no office.

2. Accepts Deposits:
The State Bank accepts deposits of all kinds from the Indian public and NRIs in rupees and
foreign currencies.

3. Gives Loans and Advances:

It gives loans and advances against an eligible security including goods, bills of exchange, promissory
notes, fully paid shares and debentures or other securities of a civil authority, etc.

4. Invests and Borrows:

The SBI invests in Government securities and borrows from the Reserve Bank.

5. Deals in Bills of Exchange:

The State Bank draws, accepts, discounts, buys and sells bills of exchange and deals in letters of credit
payable in and outside India.

6. Deals in Gold and Silver

The SBI buys and sells gold and silver. In June and July 1991, it sold gold to the Swiss Bank and
pledged gold to the Bank of England on behalf of the Reserve Bank.

7. Deals in Foreign Currencies:

The SBI is an authorised agent for dealing in foreign currencies. As such, it exchanges foreign
currencies in Indian rupees and rupees into foreign currencies.

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8. Acts as Agent:
It acts as the agent of any registered co-operative bank.

9. Business on Commission:
The State Bank transacts pecuniary business on commission.

10. Underwrites Issues:

It underwrites issues of stocks, shares, debentures and other securities in which it is authorised to invest.

11. Capital Stock of Banking Company:

It can subscribe to, buy, acquire, hold and sell any shares in the capital stock of any banking company.

12. Form Subsidiary:

It can form any banking company as its subsidiary or take over any banking company on the direction
of the Reserve Bank.

13. Hire Purchase Companies:

It is authorised to make loans and advances to firms and companies engaged in the financing of hire-
purchase transactions on the security of book debts, etc. subject to the approval of the Central Board.

14. Housing Schemes:

The State Bank is authorised to act as an agent of the Central Government, a State Government or any
corporation in implementing schemes for financing the construction of houses and manage the funds
placed at its disposal for this purpose.

15. Finances Foreign Trade:

The SBI finances the foreign trade of the country.

Achievements of State Bank of India:

The State Bank of India is the biggest commercial bank in the country with the largest number
of branches and offices in India and abroad. Since its nationalisation in 1955, its working
reveals that it has made tremendous progress in deposits, advances, rural credit, industrial
finance, priority sectors, merchant banking, mutual fund, housing finance, factoring etc.

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We discuss below its role and importance as the leading commercial bank of the country.

A. Banking Trends:
1. Paid-up Capital and Reserves:
There has been a phenomenal growth in the paid-up capital and reserves of the State Bank over
the years. From mere Rs.12 crores in 1955 and Rs.20 crores in 1969, they had risen to Rs.9,608
crores as at the end of March 1998.

2. Deposits Growth:
The SBI has made great efforts towards deposit mobilisation. In absolute terms, they increased
from Rs.226 crores in 1955 to Rs.131,091 crores in 1998.

3. Credit Expansion:
The Bank has expanded much its policy of giving loans and advances for food and non-food
purposes. The overall amount of advances increased from Rs.106 crores in 1955 to Rs.841
crores in 1969 to Rs.74,237 crores as on March, 1998.

4. Investments:
Its investments in Government securities also show considerable growth. In absolute amount,
they increased from Rs.117 crores in 1955 to Rs.350 crores in 1969 and to Rs.54,982 crores in
March, 1998.

5. Branch Expansion:
Since its nationalisation in 1955, the SBI has been successfully carrying on its policy of branch
expansion. Its number of offices including foreign offices increased from 497 in 1955 to 8,979
in June 2003. Along with branch expansion, the number of employees also increased from
14,682 to 2,33,000 over the period.

6. Other Highlights:
Its credit-deposit ratio was 47 per cent in 1995 which increased to 62 per cent in 1996. Its
capital adequacy ratio was 13.50 per cent in 2002-03 well above the stipulated 9 per cent.

B. State Bank of India and Agricultural Finance:

The State Bank of India is a pioneer in the field of agricultural finance. In fact, it has been a
pace setter for other banks in rural banking.

It has been helping in providing rural finance in the following ways:

1. Branch Expansion:

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At the time of nationalisation, the State Bank was required to open not less than 400 branches
within five years of its inception mainly in rural and semi-urban areas. In fact, it opened 416
branches during the stipulated period. Since then it has kept up the tempo of branch expansion
with the result that at the end of June, 2003, it had 4,098 branches in rural areas which formed
about 46 per cent of its total branches in the country.

2. Remittance Facilities:
With the spread of a network of branches in rural areas, the SBI has been providing cheap
remittance facilities to State and Central Co-operative Banks, Land Development Banks,
farmers and traders.

3. Help to Co-operative Banks:

The SBI has been of great help to co-operative and land development banks engaged in
providing rural credit. It grants short term credit to the State and Central Co-operative Banks
against Government securities at a concessional rate. It also grants advances to these banks for
financing marketing of agricultural produce, distribution of fertilisers, and procurement of food
grains.

4. Help to Land Development Banks:

The State helps the Land Development Banks which provide long term credit to agriculturists
in the following ways: The SBI subscribes to the debentures of LDBs and grants them loans
and advances on the security of such debentures. It also gives advances to them for a short-
term on the guarantee of the State Government, pending flotation of debentures by them.

5. Credit to Co-operative Marketing and Processing. Societies:

It provides direct credit to co-operative marketing and processing societies for working capital
requirements. This help is given when they are unable to get financial assistance from
Central/State Co-operative Banks. The marketing societies are given advances against the
pledge of their goods/produce to the SBI till they sell the produce in the market. Similarly, the
Bank grants loans to co-operative processing societies engaged in the processing of sugar, jute,
cotton, etc.

6. Production Finance:
The SBI provides short term credit to individual farmers for raising of crops.

7. Finance for Irrigation:

The Bank has been extending assistance by way of term loans to various minor irrigation
projects, command area development schemes, dug-well and tube-well sinking projects, etc.
Besides, under the Special Project Agriculture sponsored by the Rural Electrification

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Corporation for energisation of pump sets. The Bank has also been financing drip irrigation
scheme which involves application of adequate water to the plant root at definite intervals,
thereby ensuring efficient management of limited water resources.

8. Modernisation of Farm Practices:

The SBI provides finance to farmers from raising agricultural productivity through
modernisation of farm practices.

9. Wasteland Development:
The Bank extends credit facilities to farmers for reclaiming wastelands under social forestry
schemes, for raising nurseries and planting trees to meet the raw material requirements of fuel
and fodder. It also provides credit for setting up plantations in order to meet the raw material
requirements of user industries, joint sector undertaking, companies, co-operatives and
individual entrepreneurs.

10. Financing of Warehouses:

The establishment of warehouses helps in the marketing of agricultural produce by farmers.
The SBI has been associated with development of warehouses in a number of States. It also
gives advances to farmers against warehouse receipts thereby preventing distress sales on the
part of growers and provides a cushion against violent fluctuations in the prices of farm
produce. Warehouses help in storing farm products and prevent their wastage.

11. Financing of Fisheries:

The SBI finances fisheries schemes for increasing fish production to meet the domestic demand
and export potential.

12. Financing of Other Activities:

The SBI also provides financing assistance to special agricultural activities such as animal
husbandry, cattle breeding, dairy farming, piggery, poultry farming, horticulture, sericulture,
vermi-culture, tissue-culture and mushroom cultivation and high-tech agriculture. During
1995-96, the Bank’s advances to agriculture and allied activities amounted to Rs.6,749 crores.

13. Service Area Approach:

Under the Service Area Approach introduced from 1 April, 1989,86 per cent of the Bank’s
branches had implemented village credit plans in 1,12,064 villages allotted under SAA. The
Bank’s branches had also to finance ‘non-target’ group of borrowers in 54,353 villages allotted
to branches of Regional Rural Banks sponsored by the RBI, but falling outside the service areas

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of the branches of the Bank. Under the activity-wise Special Credit Plan, the Bank disbursed
Rs.2,706 crores during 1995-96.

14. Integrated Area Approach:

Since 1971, the SBI has been laying emphasis on an integrated area approach with developing
compact areas where economic growth could be accelerated with the Bank’s support,
preference being given to areas which are backward and where special schemes of the
Government have been taken up.

In keeping with this approach, the SBI has started the Village Adoption Scheme. Under this
scheme, the Bank adopts a village, fixes a target and meets the entire financial needs of the
village including its farmers, artisans and others.

15. ADBs and ABDs:

The State Bank has Agricultural Development Branches (ADBs) and Agricultural Banking
Divisions (ABDs) in selective areas particularly included in IRDP, HYVP and IAAP areas.
The aim is to finance all-round development of agriculture. The Bank works in close co-
operation with NABARD.

16. RRBs:
The Bank also finances rural activities through the Regional Rural Banks. It has sponsored 30
RRBs in 14 States covering 76 districts with a network of 2,385 branches. Under the first phase
of restructuring, 8 SBI-sponsored RRBs were covered. In the second phase, 9 RRBs have been
covered.

C. State Bank of India and Industrial Finance:

The State Bank of India occupies the premier position in providing finance to large/medium,
and small scale industries.

The type of financial assistance being rendered to them is as under:

1.Large/Medium Scale Industries:

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The Bank has been financing medium/large scale industries on a selective basis. On the one
hand, it has been financing new ventures of industrial groups with a good track record and on
the other, new generation entrepreneurs with viable ventures. During 1995-96, the Bank’s
industrial advances were Rs. 8,298 crores.
The Bank has been making loans and advances to such industrial groups as iron and steel, coal,
electricity generation, chemicals, cement, petroleum, engineering, cotton textiles, food
processing, gem and jewellery, paper products, etc.

(a) Industrial Finance Branches (IFBs):

To strengthen infrastructure for catering ‘to medium/large industries, it has set up 9 IFBs at
important centres.

(b) Monitoring of Credit:

The Bank has been making special efforts for monitoring of credit by exposing the officials to
different training programmes, including on-the-job training at the apex level.

(c) Industrial Rehabilitation:

The SBI set up a separate Department of Industrial Rehabilitation in 1990-91 to deal with sick
and financially weak units and to rehabilitate them. Its main thrust towards this direction has
been to extend nursing assistance to the sick units, mainly under the aegis of the Board for
Industrial and Financial Reconstruction (BIFR). At the same time, speedy disposal of cases
which are not amenable to nursing has been achieved through compromises, recoveries, write-
offs and mergers with healthy companies. So far, 101 out of the 351 rehabilitation packages
drawn up for assisted units under the direction of BIFR have been put in operation, and 51
companies ordered to be wound up during the year.

(d) Infrastructure Development:

For financing infrastructure projects, the Bank assisted 9 independent power projects
envisaging Rs.2,276 crores. The Bank also sanctioned Bid Bond guarantees to enable 8
companies bid for Basic and Cellular services during 1995-96.

2. Financing of Small Scale Industries:

The State Bank has been meeting the growing needs of the small scale sector by providing
credit facilities on liberal terms. Its financial assistance covers all stages of manufacturing, viz.
working capital, purchase of raw materials, marketing, entrepreneurial assistance, etc. It also
covers expansion and modernisation of plants and equipment.

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Smaller units predominate the Bank’s portfolio of small scale industries and about 66 per cent
of the small industrial units financed by the Bank have limits below Rs. 25,000. The Bank’s
outstanding advances to small scale units stood at Rs.7,790 crores at the end of March, 1996
and the number of units financed was 10 lakh.

(a) Equity Fund:

To provide equity support to small scale units, the Bank operates its Equity Fund Scheme.
Under this scheme, it provides interest free loans, repayable over a period of 5-7 years with an
initial starting period. Equity support is provided up to Rs.1 lakh to deserving entrepreneurs
setting up new small scale units and up to Rs.50,000 to professionals and self-employed
persons.

(b) Entrepreneur Scheme:

Under this scheme, the Bank finances technically qualified persons and experienced craftsmen
up to Rs.10 lakhs for starting new projects. Assistance up to Rs.2 lakhs is made available free
of margin. Where project cost exceeds Rs.2 lakhs, margins ranging from 5 to 12.5 per cent are
required to be contributed by the entrepreneur.

(c) Consultancy Cells:

The Bank has Consultancy Cells which provide management consultancy support to small
scale units and technical guidance to operating staff. These Cells are also actively engaged in
the work relating to technology upgradation. Officials of the Cell are trained to act as nodal
points for collecting and making available necessary information relating to the industry,
including techno-economic aspects.

d) Entrepreneurial Development Programme:

The Bank conducts entrepreneurial development programmes in the backward districts and its
lead districts to motivate first generation entrepreneurs to set up risk-bearing ventures.

(e) Rehabilitation of Sick Units:

Under the guidance of its Department of Industrial Rehabilitation, the Bank identifies sick
small units and formulates expeditious nursing programmes for the viable units. So far about
90 per cent of the total viable small scale sick units in the Bank’s books have been placed under
suitable rehabilitation programmes. The Bank has also initiated steps for upgradation of
technology of selected groups of small scale industries to make them more competitive.

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(f) Technology Upgradation:
The Bank has a separate Department of Systems and Technology which set up the Industrial
Technology Group (known as UPTECH Group) in 1988. This Group directs and guides
programmes aimed at facilitating technology upgradation in the small scale industrial sectors.
For this purpose, the Bank has set apart Rs.2 crores to form a Technology Data and Information
Services Centre Fund.

The UPTECH group has taken up location and industry-specific programmes. Upgradation of
products and processes are attempted in these programmes to bring about quality control,
increased productivity and efficiency. The Bank offers packages of assistance to units which
wish to implement the technological upgradation programmes.

(g) Small Business Finance:

The Bank also provides finances to small business enterprises which include retail traders,
transport operators, professionals and others. The main objective of the Bank has been to
increase opportunities for self-employment in the tertiary sector. The Bank’s advances to small
business units amounted to Rs. 2,414 crores covering 25 lakh accounts at the end of March
1996.

D. Other Achievements of the State Bank of India:

Other achievements of the State Bank spread to a wide range of activities which are discussed
as under:

1. Assistance to Weaker Sections of Society:

The Bank has been carrying out a number of schemes to assist the weaker sections of society
so that they are provided gainful employment opportunities and are able to raise their income
levels.

Some of the schemes are:

(i) Integrated Rural Development Programme:

The Bank is actively engaged in alleviating rural poverty under the Government sponsored
IRDP. It assists the rural poor in acquiring income-generating assets. Since the inception of the

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Programme in 1980 the cumulative disbursement of the Bank up to March, 1996 amounted to
Rs.2,195 crores covering 61.55 lakh beneficiaries.

(ii) Differential Rate of Interest (DRI) Scheme:

Under this scheme, the Bank has been providing financial assistance at a concessional rate of
interest of 4 per cent to persons belonging to the weaker sections of society who are engaged
in productive activities. At the end of March, 1996, the Bank’s DRI advances stood at Rs.1,443
crores. Over 60 per cent of the Bank’s DRI advances were made to SC/ST and women
beneficiaries, exceeding the stipulation of 40 per cent laid down by the Government involving
Rs.248 crores.

(iii) Twenty-Point Programme:

The Bank has achieved considerable progress under the restructured Twenty- Point Programme
which mainly aims at raising agricultural productivity, eradication of rural poverty and
ensuring justice to the underprivileged sections of the society.

As at the end of March 1996, the Bank’s aggregate loans under the Programme stood at
Rs.4,142 crores covering 95 lakh borrowal accounts. The major chunk of Bank’s assistance has
been in the spheres of attack on poverty, needs of SC/ST borrowers, strategy for rainfed
agriculture, better use of irrigation water, bigger harvests, energy for villages, etc.

(iv) Scheme for Urban Micro Enterprises:

The Scheme which is a component of the Jawahar Rozgar Yojana, was introduced in 1990. The
scheme aims at encouraging the unemployed and underemployed urban poor living below the
poverty line in metropolitan areas, cities and towns with population exceeding 10,000, to take
up self-employment ventures with the help of Bank loans and Government subsidy.

(v) Prime Minister’s Rozgar Yojana:

The Prime Minister’s Rozgar Yojana was launched on 2nd October 1993 to help educated
unemployed youth in establishing self-employment ventures. The Bank financed 68,889
beneficiaries to the tune of Rs.375 crores during 1995-96.

(vi) Total Assistance to Weaker Sections:

At the end of March 1996, the Bank’s total advances to weaker sections such as SC/ST, small
and marginal farmers, landless labourers, including beneficiaries under IRDP and DRI
Schemes amounted to Rs.3,886 crores.

2. Community Services Programmes:

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The Bank has a number of Community Services Programmes which aim at closer identification
with various strata of society, especially the weaker ones, such as women, slum-dwellers,
physically handicapped, victims of natural calamities, ex-prisoners, orphans, ex-defence
personnel etc.

Financial assistance is provided under these Programmes for self-employment and

rehabilitation of the beneficiaries. As at the end of March 1996, aggregate financial assistance
rendered by the Bank under various community services programmes amounted to Rs.317
crores spread over 11 lakh beneficiaries. Under the 15-Point Programme on minorities welfare,
the Bank disbursed Rs.372 crores to 5 lakh beneficiaries in 41 identified districts.

3. Area Development:
The State Bank has been successfully carrying out its responsibility of the development of
districts under the Lead Bank Scheme. As on March 1996, the Bank had lead responsibility in
113 districts in different parts of the country where it had been acting as a catalyst agent of
banking and rural development. Under the Annual Action Plans for 1995-96, the Bank had
extended Rs.464 crores as credit and under the Annual Action Plans for non-lead districts, the
credit extended amounted to Rs.3,052 crores.

4. Development of Backward Areas:

The Bank lays special emphasis on the balanced development of different regions, with greater
emphasis on the development of backward districts. More than 46 per cent of the Bank’s direct
agricultural advances are in backward districts, covering over 51 per cent of the borrow
accounts.

The Bank has also been assisting in the creation of self-employment opportunities as well as
industrial development of backward districts in the country. About 50 per cent of the small
scale industrial units and 55 per cent of the transport operators assisted by the Bank are in the
backward districts. Of the small business units financed by the Bank, 50 per cent are in
backward areas, amounting for 48 per cent of the total quantum of assistance provided to the
small business sphere. Out of the 187 Entrepreneurial Development programmes organised by
the Bank so far, 118 have been conducted in the backward districts.

5. Export Finance:
The Bank has been providing larger credit facilities to exporters and also promotional and
development support to them at the national level. The total export credit provided by the Bank
amounted to Rs. 6,955 crores as at the end of March, 1996. The share of export credit in Bank’s
total credit was 12.4 per cent which was higher than the export credit target of 10 per cent laid
down for banks by the RBI.

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Among the promotional measures taken by the Bank was the creation of an Export Promotion
Fund, with an allocation of Rs.1 crore out of the Bank’s profits in 1987. The Bank has been
actively associated with a number of Export Promotion Councils relating to different
commodities and with the Ministry of Commerce, Government of India in streamlining the
procedures and to render speedy and smooth service to exporters.

Further, the State Bank is the sole commercial bank nominated by the Government of India for
implementing financial transactions under the lines of credit extended by the Government of
India to various countries. The Bank also administers Gold and Silver Jewellery Export
Promotion Schemes as a canalising agency on behalf of the Government of India.

6. Merchant Banking:
The State Bank has been rendering merchant banking services to its customers since 1972. But
it was with the setting up of SBI Capital Markets Ltd. in 1986, SBI Mutual Fund in 1987, SBI
Home Finance Ltd. and SBI Funds Management Ltd. that its merchant banking activities have
spread considerably. These subsidiaries promote merchant banking, equipment leasing, venture
capital finance, portfolio management services, hire- purchase activity, housing finance
activities, etc. In fact, the Bank is a pioneer in the field of merchant banking and house finance.

7. Development of Debt Market:

With a view to further develop the debt market in India, the Bank has set up a subsidiary called
the SBI Gilts Ltd., to act as a Primary Dealer in Government securities. During 1995-96, the
Bank acquired controlling interest in Dis-court and Finance House of India Ltd.

8. Factors and Commercial Services:

The Bank launched the SBI Factors and Commercial Services Pvt. Ltd. (FACS) on 30 July,
1991 as a new subsidiary. The SBI has 54 per cent shareholding in the subsidiary, the Small
Industries Development Bank of India 20 per cent, Union Bank of India 10 per cent, State Bank
of Indore 6 per cent and State Bank of Saurashtra 10 per cent. The SBI has been allotted the
west zone for factoring.

The SBI FACS performs the function of discounting the bills of its customers by buying
invoices on a continuing basis. The customer prepays up to 80 per cent of the value of the
invoices immediately. The SBI FACS maintains the sales ledger and performs the function of
realising the invoices purchased. All types of business organisations engaged in either
manufacturing or trading are eligible for factoring.

9. Human Resources Development (HRD):

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The State Bank has been a pioneer in the field of HRD. As such,-it has been focusing attention
on development of job knowledge, skills and appropriate attitudes of its employees. Manpower
Planning, Performance Appraisal System, Career Planning and Development, Organisation
Development, and Training and Research are the various tools used in the process of
development of human resources.

The Bank lays more emphasis on training its employees at all levels and prepares them to meet
the growing needs of the Bank in the context of changing market scenario and environment.
For this purpose, the Bank has two training Staff Colleges at Hyderabad and Gurgaon, and the
Institute of Rural Development, Hyderabad and 55 Staff Training Centres.

In February 1990, it started the Institute of Information and Communication Management in

Hyderabad to spread computer education and information, and communication management
skills. In addition to the above institutional training system, the Bank also has in-branch
training arrangements in the form of visiting faculty and on-site training.

10. Customer Services:

It has been the constant endeavour of the Bank to improve its service to the satisfaction of
customers. It has Customer Service Committees and Customer Councils at almost all branches
in important towns and cities. The ‘Speed line’ system introduced in 1986 now covers 209
centres. It expedites collection, remittances and transfer of accounts of customers. The Bank
operates eight Customer Service Centres in different parts of the country which receive and
dispose customer complaints pertaining to all public sector banks at the centres.

Tele-Service has been introduced at select branches to enable customers to obtain information
over telephone.

11. New Schemes for Customers:

The Bank has been a pace setter in introducing several new schemes for the benefit of its
customers. There are a number of schemes for grant of loans to purchase consumer durables
such as Big Buy, SCO-OM and Computer Loan. The State Bank Card and the High Value Card
Scheme have created a place in the market.

There is the Travel-cash Scheme for granting loans to individuals for meeting travelling
expenses. Under the ‘Cash-key’ Scheme, individuals making deposits in the form of
Term/Special Term Deposits, Cash Certificates, Recurring Deposits with the Bank and in
Magnum Certificates of SBICAP can be granted simultaneous overdraft facility for drawing
up to 75 per cent of the amount of such deposit.

18
In order to cover investment counseling and portfolio management activities under a ‘single
window service’, Personal Investment Cells have been established in a number of metropolitan
and urban branches. On 4 May, 1992, the SBI launched the Stock-invest Scheme.

SBINET facility has been extended to all main branches, zonal offices and regional offices of
the Bank. 72 branches have been connected by SWIFT. A fast cheque collection scheme has
been introduced at major centres. ATM has been installed at Mumbai, New Delhi, Kolkata,
Bangalore, Patna and Jamshedpur.

12. Overseas Operations:

The SBI is the foremost Indian bank with overseas operations and international network. Its
international network comprises 50 offices spread over 34 countries. The Bank has established
correspondent relations with several established banks in six republics of CIS to increase trade
relations between India and CIS. In December 1992, the Bank set up the SBI Euro-plan Bank
Limited in London to exploit opportunities and meet the challenges arising out of integration
of markets in the European Community.

This subsidiary is engaged in wholesale banking. The Bank’s other branches advance loans to
both the private and public corporate sector in order to finance commodity and raw material
imports into India. To serve the NRIs better, the Bank has exclusive NRI centres in Flushing
(New York) and in Melbourne.

The Bank operates the SWIFT network in its ten foreign branches. The Bank is empanelled as
a consultant with the World Bank, the Commonwealth Fund for Technical Co-operation, UK,
the Food and Agricultural Organisation (FAO) and the European Bank for Reconstruction and
Development.

A) General Progress:

The State Bank of India has made a tremendous progress since its inception in 1955.

19
Table 1 shows the progress of the bank in the fields of deposit mobilisation, credit
expansion and branch expansion:

i. Deposit Mobilisation:
There has been an increasing trend with regard to mobilisation of deposits by the State
Bank of India. Total deposits and other accounts which were Rs. 226 crore at the end
of 1955, increased to Rs.1227 crore at the end of 1969 and further to Rs. 242828 crore
at the end of March 2001. Thus, there has been about 1075 times increase in Banks’s
deposits during 1955 to 2001.

ii. Credit Expansion:

The progress in the field of credit expansion has also been considerable over the years.
At the end of 1955, total advances made by the State Bank were Rs. 106 crore. These
advances increased to Rs. 841 crore in 1969 and Rs. 113590 crore in March 2001. This
indicates that there has been 1072 times increase in advances during 1955 to 2001.

iii. Branch Expansion:

The number of branches of the State Bank of India has also grown remarkably since its
establishment. In 1955, the Bank had 497 offices, in 1969 and 2001, the number
increased to 1673 and 9078 respectively.

iv. Present Position of State Bank Group:

By the end of March 2001, total deposits of the State Bank Group (i.e., State Bank of
India and its seven associates) had reached Rs. 312117 crore, total advances granted by
the group were Rs. 150390 crore, and total number of branches of the Group was 13509.
Thus, the State Bank of India Group accounted for about 41 per cent of deposits, 35 per
cent of advances and about 21 per cent of the offices of all scheduled commercial banks
in India. The paid-up capital and reserves of the Group were Rs. 4751 crore at the end

20
of March 1994. Net profits of the group were Rs. 2222 crore (Rs. 1604 crore of the SBI
and Rs. 618 crore of the associate branches) during 2000-01.

v. Profits, Efficiency and Capital Adequacy:

Over the years, the SBI continued to show better performance in terms of profits,
efficiency and capital adequacy. It recorded a net profit of Rs. 1604 crore for the year
2000-01 against Rs. 832 crore for 1995-96, indicating an increase of 48%.
The major contributing factors for improved net profits were higher interest income
from advances as well as investment operations, lower operating cost and better
performance of foreign offices. The Bank’s capital to risk-weighted assets ratio was
12.79% during 2000-01. This is well above the internationally accepted ratio of 8%.
Net NPA of the Bank was 6.03% in March 2001 against 6.41% in March 2000.

vi. International Banking:

At present (March 2001), the SBI has a network of 52 overseas offices with their
operations spread over 31 countries. These foreign offices mainly cater to the needs of
the country’s foreign trade and provide foreign currency resources to the Indian
corporates.
During 2000-01, the foreign offices of the SBI earned a net profit or Rs. 248 crore. The
deposits and advances of the Bank’s foreign offices were Rs. 7932 crore and Rs. 14797
crore respectively at the end of March 2001.

vii. Technology Upgradation and Consumer Services:

The State Bank of India (SBI) has taken significant initiatives in the fields of technology
upgradation and better consumer services.

Progress since 2001:

21
Table -2 shows the progress and performance of the State Bank of India since
2001:

(i) Paid up capital & reserves of the bank increased from Rs.15224 crore on 2001-2 to
Rs.64986 crore in 2010-11.

(ii) Deposits of the bank increased from Rs. 270560 crore in 2001-2 to Rs. 933933 crore
in 2010-2011.

(iii) Advances of the bank increased from Rs. 120806 crore in 2001-2 to Rs. 756720
crore In 2010-11.

(iv) Number of domestic offices of the bank increased from 9034 in 2001-02 to 13542
in 2010-11 and of foreign offices increased from 51 in 2001-02 to 1565 in 2010-11.

(v) Net profits of the bank increases from Rs. 2432 crore in 2001-02 to Rs. 8265 crore
in 2010-11.

(vi) Capital-adequacy ratio moved from 13.4% in 2001-2 to 10.7% in 2010-11.

Net NPA to net advances ratio has fallen from 5.6% in 2001-2 to 1.6% in 2010-11.

The State Bank had made remarkable progress in the field of rural credit. Since its
establishment, it has been making tremendous efforts to develop rural credit by
extending credit facilities to cooperative institutions and agriculturists.

Important measures undertaken by the State Bank to promote rural credit are as
follows:

I. Expansion of Rural Branches:

The branch expansion of the State Bank has been largely rural – oriented. Out of the
total 12486 branches of the State Bank Group at the end of March 1990, 5811 (i.e.,
44.8%) were located in the rural areas with population less than 10,000; 3483 (i.e.,
27.9%) were in semi-urban areas with population 10,000 to less than 1 lakh; and 3192
(i.e., 25.6%) in the urban areas and metropolitan cities.

22
II. Agricultural Finance:
The State Bank has been extending financial help to agriculture. In 1969, the total
agricultural advances by the State Bank were Rs. 92 crore, which increased to Rs. 14982
crore in March 2001.

The State Bank of India has identified and is expanding its involvement in the following critical
areas in agricultural lending:

(i) The Bank has contributed to the spread of minor irrigation schemes;

(ii) To increase productivity at the farm level, the Bank provides production finance
directly to the farmers.

(iii) To develop dryland farming, the Bank- (a) grants loans for agricultural
development in dryland areas, and (b) prepares and finances dryland farming projects
in compact areas on the watershed basis.

(iv) The bank finances the farmers to install drip irrigation schemes in Karnataka, Tamil
Nadu and Maharashtra.

(v) The Bank provides assistance to farmers to take up cultivation on waste lands under
social forestry schemes for raising nurseries and planting of trees for fuel, fodder, etc.
(vi) The Bank provides financial help for modernising agricultural practices and raising
farm productivity through the use of tractors and other agricultural implements.

III. Village Adoption Scheme:

The State Bank has undertaken a village adoption scheme. Under this scheme, a village
is selected for development by meeting its complete financial requirements, including
the requirements of the farmers, artisans and others.
The total number of villages adopted by the State Bank (other than those covered by the
agricultural development banks) in 1987 was 54207. The total amount of credit and the
number of farmers financed under this scheme stood at Rs. 1559 crore and 26.4 lakh
respectively in March 1989.

IV. Integrated Rural Development Programme:

23
Integrated rural development scheme aims at all round and integrated development (i.e.,
economic, social, cultural, etc.) of the rural areas. The total loans disbursed by the State
Bank upto the end of March 1999 under this programme amounted to Rs. 3212 crore
spread over 69 lakh beneficiaries.

V. Regional Rural Banks:

Regional rural banks have been started with a view to provide credit to the small and
marginal farmers and other weaker sections of the society. The State Bank is providing
financial assistance to these banks. Upto the end of March 2001 the State Bank had
sponsored 30 regional rural banks, covering 85 districts in the country.

VI. Agricultural Development Branches:

An important feature in the field of agricultural financing by the State Bank is the
expansion of special agricultural development branches. These branches aim at
financing all – round development of agriculture and function in close cooperation with
Agricultural Refinance Development Corporation (ARDC), now called National Bank
for Agriculture and Rural Development (NABARD). Upto March 1999, the Bank has
contributed Rs. 1681 crore to NABARD.

VII. Remittance Facilities:

The State Bank provides liberalised remittance facilities to the institutions operating in
the rural areas like state and central cooperative banks, land development banks, etc.
With the implementation of the branch expansion programmes, the State Bank is now
in a position to extend these liberalised remittance facilities more effectively to the rural
and semi-urban areas.

VIII. Short-Term Credit to Cooperative Banks:

The State Bank has been providing short-term credit facilities to the state and central
cooperative banks against government securities at a rate half per cent below the usual
rate charged by it.

IX. Assistance to Land Development Banks:

The State Bank also gives financial assistance to the land development banks which
provide long-term credit to agriculture:

(a) The State Bank subscribes to the debentures issued by the land development banks.

24
(b) The State Bank grants advances on the security of such debentures. This improves
the marketability and popularity of these debentures in the money market.

(c) The State Bank provides loans and advances to cooperative central land
development banks.

X. Finance for Marketing and Processing Societies:

The State Bank gives direct financial help to marketing and processing cooperative
societies in the areas where the central cooperative banks are not in a position to assist
them. The marketing societies can get advance by pledging their produce at favourable
prices. Processing cooperative societies such as cooperative sugar mills, cotton ginning
and pressing societies, etc. are also provided similar credit facilities by the State Bank
of India.

XI. Warehousing Finance:

Warehousing aims at scientific storage of the products and is essential for the
development of agricultural marketing. The State Bank has been actively associated
with the warehousing development scheme and provides advances against warehousing
receipts.

It has also been making efforts to improve its procedures and terms with a view to
promote and popularise the warehousing scheme. Moreover, the State Bank has
permitted its officers to serve on the advisory committees for warehouse

(C) Bank and Industrial Finance:

The State Bank of India has been extending financial help for the promotion of
industrial growth in the economy.

Various forms of assistance to the industries by the Bank are given below:

I. Industrial Finance:
In tune with the rapid industrial growth in the country, the loans and advances of
the State Bank to the industrial sector has shown substantial growth over the
years. As compared to the amount of Rs. 9771 crore at the end of 1987, the
advances to the industrial sector (including the small scale sector) increased to
Rs.15519 crore at the end of March 1990.

25
 II. Bank Corporate Banking Group:
The State Bank performs the following functions:
Consist of three strategic business units, i.e.- (a) Corporate Accounts Group
(CAG), (b) Leasing Strategic Business Units (Leasing SBU) and (c) Projects
Finance Strategic Business Unit (Project Finance SBU).

III. Finance to Small Scale Industries:

The State Bank of India’s finance to small scale industries has also increased
substantially over the years. In 1969, the advances to small scale industries were
Rs.104 crore, which increased to Rs. 12718 crore in March 2001. Similarly, the
Bank’s small business finance increased from Rs. 7 crore in 1969 to Rs. 3711
crore in March 1998.

Other facilities provided by the Bank to small-scale and cottage and village
industries are as given below:

(i) The Bank offers technical and financial consultancy to the units on its books to
enable them to overcome problems of technological obsolescence, marketing,
management, etc.

(ii) Under its Equity Fund Scheme, the Bank makes available the equity assistance in
the form of interest – free loans repayable on a long – term basis to the needy
entrepreneurs to set up new small- scale units.

(iii) The Bank conducts Entrepreneurial Development Programmes to promote

entrepreneurship for the development of ancillaries near large project areas and of high
– tech industries, such as electronics, computer peripherals, etc.
(iv) To assist the export efforts of the small – scale industrialists, arrangements have
been made to extend the Whole Turnover Packing Credit Guarantee Scheme (WTPCG
Scheme) to small – Scale industries from January 1, 1988.

(v) To increase opportunities for self – employment in the tertiary sector, the Bank
provides finance to small business enterprises.

(vi) Project Uptech, set up by the Bank in 1988 for bringing about technology
upgradation of small and medium enterprises, has taken up 19 projects upto March
2001. Six new projects are in the pipeline.

26
SUBSIDIARIES OF SBI

There are different types of Subsidiaries of SBI are as follows:

SBI Card
SBI Life Insurance Company
State Bank of Bikaner & Jaipur

27
1.SBI Cards

Meaning and Definition of SBI Cards:-

SBI Credit Card was first launched in October 1998 in India’s capital city New
Delhi. It was launched in a joint venture with GE Capital. It is incorporated as SBI
Cards and Payments Services Private Limited. It is headquartered in Gurgaon,
Haryana. The State Bank of India is the largest public sector bank in India. The term
SBI is a household name in India.

SBI Credit Card Features

1. Loan Facilities –
The SBI Credit Card provides hassle-free loan facilities on demand. One time
processing fee of 2%, up to a minimum amount of Rs 499 and a maximum
amount of Rs 3,000 has to be paid. Loan repayment can be done within 12 or
24 or 36 months. The rate of interest is very low. Documentation is not
required, there is no paper-work involved to secure the loan.

28
2. Balance Transfer –
The SBI Credit Cards provide ‘low-interest rate on balance transfer’ facility.
It is available to all the residents of India who are holders of a valid and
current primary SBI Credit Card. Balance Transfer amount ordered by a
primary SBI Cardholder would be processed by SBI Cards and Payment
Services Private Limited subject to a minimum ordered amount of Rs 5,000
and a maximum ordered amount of 75% of the available credit limit assigned
to the concerned primary SBI card account.

3. Balance Transfer on EMI-

SBI Credit Card provides Balance Transfer on EMI, with a minimum transfer
amount of Rs 5,000 and a maximum amount of 75% of the available credit
limit as assigned to the SBI Cardholder. The cardholder shall be levied a
foreclosure fee amounting to 3% of the Principal amount outstanding in case
of the Offer being voluntarily pre-closed by the customer prior to the maturity
of the tenure period opted for.

4. Flexipay –
SBI Credit Card charges a default rate of interest of 22% on this facility. A
differential rate of interest is applicable from the select set of cardholders. The
Rate of interest charged will be intimated to cardholder prior to availing the
facility. Factors which determine the rate of interest are credit risk profile and
past transactions or repayment behaviour of the customer.

5. Encash –
SBI Credit Card provides encash offer to its credit cardholders. SBI
cardholders can avail the benefits under this offer by requesting for a
chequebook which would be sent to the cardholders registered address. The
monthly repayment amount will be calculated based on the following formula
(principal amount + interest charge) / tenure in months. The monthly
repayment schedule will begin from the SBI Cardholders next billing
statement and it will continue over the tenure period chosen for the offer.

6. Card Upgrade –
SBI Credit Cardholder can upgrade the card facility by paying an annual fee.
The upgrade will be offered to eligible customers based on the internal
evaluation of the customer's performance and credit history of the card. The

29
 old plastic cards will be active for a period of 90 days from the date of
upgrading to a new card.

7. Easy Bill Pay Service –

This facility is available for SBI Credit Cardholders for select billers in select
cities in India. The services will be available to the registered cardholders and
to the exclusion of all others. The cardholder agrees to pay a convenience
charge while registering through SBI Card website.

8. Global Acceptance –
The SBI Credit Card is accepted both in India as well as in the foreign
countries.

Benefits of SBI Credit Card

The following are the benefits of using SBI Credit Card.

1. Lower Interest Option – SBI Credit Card charges the lower interest rate on the
outstanding credit balance. One can use this option and transfer the outstanding
balances of other credit cards to SBI Credit Card at a lower interest rate or can
convert transactions into easy monthly installments (EMI). The current rate of
interest is 0.75% per month for a period of three months and 1.27% per month for
six months.

2. Encash – With the SBI Card Payment, the cardholder can have easy accessibility
for cash. The holder of the card can encash up to or above the set credit limit. The
user can enjoy hassle-free money using SBI Credit Card Payment as per the

30
requirements. The repayment option is also made convenient by SBI, it doubles up
the benefit for the customer.

3. Simplified Form of Money – With the introduction of SBI Card net banking, one
need not have to visit the bank every time for withdrawing money. Cards can be
used to pay for bills and thus the process of paying bills has been simplified.

4. Insurance – SBI Credit Cardholder can choose different types of Insurance cover,
provided by State Bank of India empowering the account holder to tackle the future
unforeseen events in life. It is currently providing the following types of insurance
cover for cardholders – Health Insurance, Personal Accident Insurance, and Card
Protection Plan.

5. Utility Bill Payments – By using SBI Credit Card, an individual can avail the
benefits of Auto Bill Pay. After registering for Auto Bill Pay, one can ensure that all
the bills will be paid automatically on time and one need not have to worry about
missing the deadlines for bill payment. Using Auto Bill Pay mechanism you can pay
telephone, mobile, electricity bills, insurance premium and so on. By registering the
billers and setting up the standard instructions to pay the bills on time, all the bills
will be paid on time every time, automatically. Once the bills are paid automatically
you will receive an SMS and e-mail confirming the payment information, bill due
dates, and new biller additions. The SBI Credit Card Online Payment facility comes
in handy to pay utility bills.

6. Easy Access – One can access SBI Card account anytime, anywhere with
sbicard.com or you can also use Simply SMS or can download the SBI Card mobile
app or can download yono by SBI Android App. The process of accessing SBI Credit
Card has been simplified to a great extent.

7. Rewards – SBI Credit cards provides its users to earn reward points on every
purchase. These reward points do have an expiry period within which it should be
redeemed. If the customer is an avid online shopper then the best SBI credit card
will be SBI SimplyCLICK Credit card as it covers most of the popular e-commerce
sites including Flipkart and Amazon.

SBI Credit Card Eligibility

31
  To apply for SBI Credit Card, the individual should have attained 21 years of
age to a maximum of 60 years.
 The applicant should be a resident of India.
 The applicant should have 200 credit score or above.
 The applicant should have a regular source of income.
 Must have a minimum salary of Rs 20,000.

Required Documents for SBI Credit Card

 One identity proof issued by the government of India – Election Voters ID,
Driving License, Aadhaar Card, Passport, Ration Card.
 PAN Card.
 Income Proof – Latest Income Tax Return Form/ Form 16/ Salary Slip/ Salary
Certificate
 Address Proof – Telephone Bill/ Passport/ Electricity Bill/ Bank Passbook /
Letter from recognized public authority / Aadhaar Card/ Ration Card.

Other Benefit of SBI Credit Card

1. More Options To Choose SBI:-

Card provides the customer with a variety of cards to fulfill the individual
needs and requirements. It may either be for shopping, dining, travel,
premium and so on.

2. Interest Rate:-
interest rates are lower compared to other credit card facilities.

3. EMI Options:-
SBI Card provides the holders an option to convert the pricey purchase to easy
monthly installments, at a lower rate of interest.

4. Reward Schemes:-

32
 SBI Credit Card provides various reward schemes to the customers, which
gets accumulated after purchasing products at selected outlets across the
country. The same can be redeemed for special offers and deals.

5. Unique Opportunity:-
SBI provides the unique opportunity to its cardholders to use the card for
securing shopping discounts, travel concessions, cash advance facilities and
balance transfer on EMI and so on.

Benefits Of SBI Credit Card – Net Banking

 Track all your transactions in one platform.
 Get access to your account 24x7.
 Manage and view cash and credit limits, billed and unbilled transactions, due
dates, reward points.
 Get unique and convenient services such as pay bills, register new card, hotlist
lost card, register for autopay, change ATM PIN, request email statement, etc.
 Get unique features such as Cash on Call and Dial an EMI.
 Increase your credit card limit and upgrade your card.
 Pay all your dues or transfer money through NEFT, RTGS or IMPS.
 Pay utility bills or recharge your mobile through easy Billpay service.
 Get online deposit products (Fixed, Recurring, Flexi, Tax Saving etc.)
 Setup Standing Instructions and Scheduling payments.
 Get E- Tax for online tax payment Get E - Pay for automatic bill payments.
 Get DEMAT and IPO services.

SBI Credit Card Payment

The holders of SBI Credit card can do payment using an array of options which are
available both in online and offline. Customers can choose any of the payment option
as per their convenience.

SBI Credit Card Online Payment Modes

India’s largest public sector bank offers 12 online modes for SBI Credit Card online
payment. They are:

 VISA Credit Card pay.

 SBI Mobile Banking.

33
  NEFT.
 Online SBI.
 SBI Auto Debit.
 Paynet – Pay Online.
 Electronic Bill Payment.
 Debit Card.
 Pay via UPI.
 Pay via Mobile App.
 National Automated Clearing House.
 Pay via YONO.

SBI Credit Card Bill Payment – Offline Mode.

The customers of SBI Credit card can even pay their bills via offline mode. The
following are the Credit Card Bill Payment Offline Option.

1. Over the Counter Payment:-

Make payments over the counter at any of the SBI branches across India.

2. Electronic box drop:-

The credit cardholders can also deposit the payment cheques in the electronic
drop boxes and get an instant receipt of payment of credit card bill.
3. Manual Drop Box:-
As per this option, one can pay SBI credit card bills using cheques. One can
drop the cheques at any of the 500+ drop boxes located anywhere across India.
4. SBI ATM payment:-The holders of SBI credit card can pay their outstanding
bills using SBI Debit card as well and this can be done at any of the SBI ATM
centres across India.

34
SBI Credit Card Net Banking through NEFT

Now SBI Credit Cardholders can pay their credit card bills via NEFT (National
Electronic Fund Transfer). Follow the steps and make your SBI Credit Card payment
through NEFT:-

 Sign in to your internet banking services using your user id and password as
provided by your respective bank and login to your account.

 Proceed further and select the ‘Third Party Transfer Option’ and add your SBI
Card as the beneficiary.

 Enter your 16 digit SBI Credit card number instead of your account number
on the internet banking page.

 Enter the respective IFSC code for your SBI Card and make NEFT Credit
Card payment.

 Provide the beneficiary name as SBI Credit Card – NEFT.

 Enter all the relevant details such as the address of the bank as Payment
Systems Group.

 Click on the submit button to complete the registration process.

 To proceed with payment, choose SBI card as the beneficiary and enter the
relevant amount which you wish to transfer.

 You will receive a notification post the completion of the process along with
the transaction reference number.

 Once the amount is credited to your SBI Credit card account, you will get a
notification through SMS which acknowledges the payment.

35
SBI Life Insurance Company
Meaning and Definition
SBI Life Insurance is a joint venture life insurance company between State Bank of
India (SBI), the largest state-owned banking and financial services company in India, and BNP
Paribas Cardif. BNP Paribas is a French multinational bank and financial services company
with global headquarters in Paris. SBI life insurance is Public Limited Listed company. SBI
Life Insurance Listed on BSE And NSE (Stock Exchange of India). SBI Life started as a joint
venture with BNP Paribas in 2001. While in its initial stage its business was mainly
from bancassurance channel, now it is developing its own agency team for selling its life
insurance products.

Features of SBI Life Insurance

36
Types of SBI Life Insurance Plan

SBI Life insurance offers range of life insurance products with variants to provide financial
protection against life’s uncertainties. Plans offered:

1. SBI Life Unit Linked Insurance Plans (ULIP)

2. SBI Life Protection (Term) Insurance
3. SBI Life Savings Plans
4. SBI Life Investment Plans
5. SBI Life Retirement Plans
6. SBI Life Child Plans

1. Unit Linked Insurance Plans (ULIPs)

Unit Linked Insurance Plan is one of the financial products offered by SBI Life which is a
combination of insurance and investment. They are the linked to the market. This way these
products offer returns on investment and life insurance cover. The part of the premiums are
invested in market - equity, debts, hybrid, based on the investor's choice which helps to build
funds. And part of the premiums is kept to provide life cover.

Features

 The best of both the world - insurance and investment in one basket

37
  Part of the premiums are invested while other part is used for providing the coverage
 Each plan offers returns on maturity
 In case life assured dies during the term, the sum assured is paid to the nominee
 Option to surrender or partially withdraw ULIPs
 Tax Benefits as per the Section 80C and 10(10D) under the Income Tax Act, for
premiums and the payout.

2. SBI Life Protection Plan

SBI Insurance (SBI) offers different variants of Term insurance plan to provide financial protection against
life’s uncertainties. SBI offers different non-participating, traditional income protection plan. With the help
of a term plan you protect your family’s monthly income flow, on the event of unfortunate untimely death.
Option to choose as lump sum, monthly income payout or annual increase in payout safeguards your family
against the loss of the income.

SBI Life types of Protection Plans:

 SBI Life - eIncome Shield

The premium paying term is of regular pay.Offer two plans - Level Term Assurance and Increasing
Term Assurance. The Death Benefit can be chosen as Lump Sum Benefit and Monthly Income
Benefit.

 SBI Life - Smart Shield

The premium paying term can be single payment or regular premium. Offer two plans that allows
as payout of sum assured as Level Term Assurance or Increasing Term Assurance @5%.

 SBI eShield

The premium paying term can be regular pay. Comes with an option of inbuilt Accidental Death
Benefit. Death Benefit can Level Term Assurance and Increasing Term Assurance.

 SBI Life - Saral Shield

The minimum sum assured is Rs. 7.5 Lakh, and maximum is Rs.24 Lakh. Death Benefit
can be Level Term Assurance, Decreasing Term Assurance (Loan Protection),
Decreasing Term Assurance (Family Income Protection).

 SBI Life Grameen

38
 This is for people below economical line. The premium paying term - Single pay. With
minimum premium Rs.300 and maximum Rs.2000. Sum assured - The minimum sum
assured is Rs.10,000 and maximum is Rs.50,000*

3.SBI Life Savings Plans

Introduction

The savings plans by SBI Life offers life cover along with savings. With the help savings plans,
the family is not only protected against the financial loss in case of the breadwinner’s passing
away but also helps an individual to build funds for short and long term goals.

Features of Savings Plans

 Life coverage plus opportunity of savings

 Family financial protection
 Build funds for short and long term goals
 In case of death of the life assured, the sum assured is paid to the nominee
 Tax Benefits as per the Section 80C and 10(10D) under the Income Tax Act, for
premiums and the payouts.
 SBI Life offers Types of Savings Plan

Various types of savings plans of SBI Life

 SBI Life - Smart Bachat

It’s a limited premium payment term endowment plan. Offers two option as plain
vanilla endowment plan and endowment plan with in-built Accidental Death and Total
Permanent Disability. Premium payment period can be 5,7, 10 and 15 years and policy
period can be from 10 to 25 years. As a survival benefit at the end of policy term the
policyholder receives guaranteed sum assured, vested simple reversionary benefit,
terminal bonus (if any).

39
 Smart Women Advantage

As the name suggests, it is specifically designed for women. This plan offers life cover,
savings and Critical Illness (CI) rider benefit with in-built premium waiver incase of
any CI. Also, offers additional benefits pregnancy complication and congenital
anomalies. Offers two plans - Gold and Platinum.

 SBI Life - Smart Swadhan Plus

Comes with twin benefit i.e. provide life cover and 100% return of premiums. Offers
single and limited premium payment (5,10, 15 years), and regular premium upto policy
term. Choose life cover for a term of 10 years to 30 years. On maturity the total
premiums will be paid to the policyholder.

 SBI Life - Smart Humsafar

A perfect joint life insurance plan. In this plan you can cover yourself and your spouse
in a single policy. A non-linked participating endowment plan. Provides financial
protection in case of death of either or both the life assured. Customize with additional
riders. As a survival benefit at the end of policy term the policyholder receives
guaranteed sum assured, vested simple reversionary benefit, terminal bonus (if any).

 SBI Life - Smart Money Planner

A non-linked with profit assurance endowment plan with guaranteed cash flow at
regular intervals. A savings plan with added feature of ‘Growth period’. Option of
single premium payment and limited premium payment. Offer four variants.

 SBI Life - CSC SaralSanchay

A non-linked and non-participating variable insurance plan. A simple and easy savings
plan with a minimum floor rate of 1% p.a. Payable throughout the policy term Offer
partial withdrawal.

 SBI Life - Smart Income Protect

A traditional participating plan with life cover and regular cash inflow. Offers different
policy term of 7, 12, and 15 years. Premium payment same as policy term. Customize
with wide range of riders. Offers different payouts options on maturity - lump sum and
installments.

 SBI Life - Smart Guaranteed Savings Plan

A traditional non-participating savings plan. Offer guaranteed additions at the simple

rate of 5.5% or 6 % applicable to the basic premiums paid. Limited premium payment
for 7 years with policy period of 15 years. Life coverage based on the premium chosen.

40
 SBI Life - Smart Money Back Gold Plan

Smart Money Back Gold Plan Tailored money back options. Allocate fixed cash flows
at regular intervals. Survival Benefit of 110% of sum assured paid till maturity.
Customize plan with additional wide range of riders. Offers 4 types of variants with
policy term of 12, 15, 20 and 25 years.

 SBI Life - SubhNivesh

It has two main option, plain vanilla endowment plan and other endowment with whole
life cover. A non-linked with profit endowment assurance with whole life coverage.
Provides savings, income, and life cover, Option of regular or single premium payment
mode. Offer 3 riders to add on. Option to receive the basic sum assured at regular
intervals of pre-decided period of 5/10/15/20 years.

 SBI Life - SaralSwadhan+

A non-linked, non-participating, term assurance with returns of premium on survival.

Provides a fixed life cover over the policy term. It offers guaranteed maturity benefit,
provided 3 annual premiums have been made. Fixed premium term of 10 years whereas
policy term can be 10 or 15 years.

 SBI Life - Flexi Smart Plus

A participating, variable insurance empowering you with more flexibility. Offers

guaranteed bonus, Interim bonus, regular bonus, terminal bonus. Option to choose from
two protection plan - Gold and Platinum. Offers partial withdrawal, flexibility to
increase/decrease sum assured, and complete flexibility to increase chosen policy term.

4.SBI Life Group Plans

Corporate Solutions Plan

 SBI Life – Kalyan ULIP Plus :-

This is a non-participating, unit linked fund-based plan for Employer-Employee groups.
It combines the benefits of gratuity, superannuation and leave encashment schemes for
employees. In the event of death of the member, Sum Assured of Rs. 1,000 shall be
paid to the nominee.

 SBI Life – Cap Assure Gold :-

41
 This is a variable, non-linked non-participating fund-based plan that helps to meet the
needs of Employers/ Trustees/ PSUs /State Governments/ Central Government who
want to fund their employees’ retirement benefit schemes of leave encashment, gratuity
and superannuation.

 SBI Life – Gaurav Jeevan :-

This is a non-linked, non-participating group annuity plan designed for the Central
Government, State Government, Government Enterprises, and their agencies.
Government agencies can avail their annuity liability with regards to annuity payments
for compensation to land owners whose land is being acquired.

 SBI Life - Pradhan Mantri Jeevan Jyoti Bima Yojana :-

This is a non-participating, non-linked, one-year renewable group term plan. It offers a
life cover of Rs. 2 lakhs at a nominal rate of premium.

 SBI Life – Sampoorn Suraksha :-

This is a yearly, renewable group term assurance, available for different formal and
informal groups. It offers comprehensive insurance benefits that can be customized as
per one's needs.

 SBI Life - Swarna Jeevan :-

This is a non-linked, non-participating group annuity plan. SBI Life - Swarna Jeevan
helps employers transfer the management of pension liabilities. It offers a wide choice
of annuity options.

Group Loan Protection Plans

 SBI Life – RiNn Raksha :-

This is a group, credit life, decreasing term plan that provides comprehensive life
coverage for loan. Individuals are given a choice of loan cover term. One has the option
of including SBI Life - Accidental Total and Permanent Disability Benefit Rider to SBI
Life – RiNn Raksha.

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 Group Micro Insurance Plans

 SBI Life – Shakti :-

This is a non-participating, non-linked group micro term insurance plan with return of
50% premium on maturity. The plan offers choice of coverage amount on the basis of
member's needs, capped upto Rs. 2,00,000.

 SBI Life – Grameen Super Suraksha :-

This is a group pure term micro insurance, non-participating, non-linked plan. Medical
examination is not required - acceptance is on the basis of satisfactory health
declarations.

5.SBI Life Child’s Plan

This plan offers to save money for child’s future. This plan helps to build funds for child’s
education and marriage. Have a complete peace of mind while you celebrate life with your kids
with the help of Child’s plan.

Features of Child Plans

 Opportunity to build corpus for child’s future

 Different variants available
 Tax Benefits as per the Section 80C and 10(10D) under the Income Tax Act, for
premiums and the payouts.

SBI Life types of Child’s Plan:

 SBI Life - Smart Scholar

This plan is designed keeping child’s future growth. Offer an inbuilt Waiver of
Premium featured rider, while an option to customize with Accidental Death Benefit
and Total Permanent Disability Rider. Option of 7 funds allocation.

 SBI Life - Smart Champ Insurance

This plan is focuses on the child’s future growth. The policyholder is assured with
Accidental Death Benefit. Provides four equal annual installments after the child attains

43
 18 years of age. This plan offers triple protection in case of an unfortunate event during
the policy term wherein something happens to the life insured.

6.SBI Life Retirement Plan

A retirement plan is a way of systematic savings. This will help in building funds for your
retirement. As increase in the expenses and inflation hinders in savings which makes difficult
to continue the same lifestyle post retirement, this plan ensures you continue to maintain your
lifestyle.

Features of Retirement Plans

 Life coverage plus opportunity of building funds for retirement

 Meet retirement goals
 Option to choose from different variants
 In case of death of the life assured, the annuity is paid to the spouse
 Tax Benefits as per the Section 80C and 10(10D) under the Income Tax Act, for
premiums and the payouts.

SBI Life types of Retirement Plan:

 SBI Life - Saral Pension

This is participating, non-linked and a traditional pension plan. Offers Guaranteed

bonus for first 5 years of the policy term. This plan offers Vesting benefit with terminal
bonus (if any). You can choose from regular or single payment mode. The policyholder
can customized the plan with preferred term rider.

 SBI Life - Retire Smart

This is linked plan and policy period can be 10, 15 to35 years. Offers guaranteed
additions for the policy term of 35 years. Option of regular and limited period.
Flexibility of postposing your vesting age. Get terminal additions of 1.5% of fund value.

 SBI Life - Annuity Plus

A perfect traditional non-linking annuity plan. Offers wide range of annuity options.
Flexibility to choose payouts from the age of 40 years. Larger annuity payouts on larger
premiums. Customize with Accidental Death Benefit rider.

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SBI Life Insurance Riders

1. SBI Life Accidental Death Benefit Rider - In the case of an accidental death of the
life insured, SBI will pay rider sum assured in addition to the basic term assured to the
nominee. The minimum rider benefit is Rs.25,000 and the maximum is Rs.50 Lakh.

2. SBI Life Accidental Death Benefit Linked Rider - In the case of an accidental death
of the life insured, SBI will pay rider sum assured in addition to the basic term assured
to the nominee. The minimum rider benefit is Rs.25,000 and the maximum is Rs.50
Lakh.

3. SBI Life Accidental Total and Permanent Disability Rider - In the case of disability
to the life insured caused due to the accident, SBI will pay rider sum assured in addition
to the basic term assured to the nominee. The minimum rider benefit is Rs.25,000 and
the maximum is Rs.50 Lakh.

4. SBI Life Critical Illness Non-Linked Rider - It covers 13 major critical illnesses,
including First Heart Attack of specified severity, Cancer, Open Chest CABG,Kidney
Failure, Major Burns,Paralysis, Major Organ Transplant,etc. The minimum rider
benefit is Rs.25,000 and the maximum is Rs.50 Lakh.

5. SBI Life Preferred Term Rider - It covers death of life assured. This an additional
life cover to the base cover. The minimum rider benefit is Rs. 25,000.

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State Bank of Bikaner & Jaipur

Introduction:-

State Bank of Bikaner & Jaipur (SBBJ) was a major Indian bank. It was a subsidiary of State
bank of India, with which it was merged on 31st March 2017. As of 2015, SBBJ had 1,360
branches, mostly located in the state of Rajasthan, India. Its branch network out of Rajasthan
covered all the major business centers of India. In 1997, the bank entered the capital market
with an Initial Public Offering of 1,360,000 shares at a premium of Rs. 440 per share.

History of State Bank of Bikaner & Jaipur(SBBJ).

State Bank of Bikaner & Jaipur came into existence on 1963 when two banks, namely, State
Bank of Bikaner (established in 1944) and State Bank of Jaipur (established in 1943), were
merged. Both these banks were subsidiaries of the State Bank of India under the State Bank of
India (Subsidiary Bank) Act, 1959.
On 25 April 1966 SBBJ took over Govind Bank (Private) Ltd., Mathura,[6] established on 8
February 1963.
In 1984 SBBJ sponsored and established Ganganagar Kshetriya Gramin Bank as a Regional
Rural Bank. Thereafter, in 1985 SBBJ opened the Bikaner Kshetriya Gramin Bank, the second
Regional Rural Bank sponsored by it. The third Regional Rural Bank, sponsored by SBBJ was

46
Marwar Gramin Bank, which covered the districts of Pali, Jalore and Sirohi. On 12 June 2006,
SBBJ merged all three regional rural banks that it sponsored under the name MGB Gramin
Bank, with headquarters in Jodhpur.

Features and Benefits of State Bank of Bikaner and Jaipur

Education Loan:
1.Objective/ Purpose of Loan:
The SBBJ Educational Loan Scheme aims to offer financial support to meritorious students,
helping them to pursue higher education in India and abroad. The emphasis is on the fact that
a meritorious student, regardless of his/her financial status, is provided with an opportunity to
pursue education with financial support from the banking system with reliable and affordable
conditions.

2.Amount of education loan:

The amount of loan offered for education purposes to students is up to 10 lacs for education in India, and up
to 20 lacs for pursuing education abroad.

3.Interest Rates:
Interest rates are subject to changes from time to time. Currently for a girl student the interest rate is 0.50%
lower than that offered to regular customers. If the student wishes to pursue his/her studies in prime
institutions, the rate of interest will be up to 1.00% lower. A 1% concession on interest may be offered by
the bank, provided that the interest is paid back during the study period. The minimum interest charged on a
loan of up to 4 lac is 11.25 % per annum.

4.Processing Fees:
There are no additional charges or processing fees on education loans offered by State Bank of Bikaner and
Jaipur (SBBJ).

5.Repayment Tenure:
Repayment of the loan is to begin one year after the completion of the course or six months after the student
gets a job, whichever happens first. The student is expected to pay a minimum amount equivalent to the EMI
on a monthly basis. However, more than the stipulated EMI can be paid back without any prepayment
penalty. Repayment of the loan is in equated monthly instalments for tenures as given below:-
 For loans which amount to 7.5 lakhs and below, the tenure is up to a maximum of 10 years.
 For loans above 7.5 lakhs, the tenure is up to 15 years.

6.Maximum loan limit:

The maximum loan limit is not applicable for education loans up to 4 lacs. But for loans above 4 lakhs taken
for studying in India, the maximum loan limit is 5% and for studies abroad the maximum limit is 15%.

7.Margin:
Graduates, post graduates, persons going for professionals courses, having employment opportunities can
apply for State Bank of Bikaner and Jaipur education loans. The maximum amount of loan for pursuing
studies in India is 7.5 lac INR and for studying abroad it is 15 lacs INR.

47
8.Security:
For education loans which amounts up to 4.00 lacs, no security is required. For an education loan which falls
within the range of 4.00 lacs to 7.50 lacs, a third-party guarantee is required. Also, for loans above 7.50 lacs,
an equitable mortgage of landed property or any other tangible security is mandatory.

Expenses considered for State Bank of Bikaner and Jaipur education loan:
1. Fees for attending college, school or hostel.
2. Fees payable for Examination, Library and Laboratory.
3. Travel expenses for studies abroad.
4. If applicable, Insurance premium for student borrower.
5. Caution deposit, Building fund, refundable deposits along with proof in the form of
institution receipts.
6. Cost of books, equipment’s, instruments as well as uniforms.
7. Amount required to purchase computer/laptop at a reasonable cost, if it is required as a
part of completion of the course.
8. Other expenses required as part of the course such as study tours, project work, etc.

48
SBI General Insurance

SBI General Insurance was founded in 2009. It started operations in 2010, as a joint venture
between State Bank of India (SBI) and Insurance Australia Group (IAG).

The company sold a 4% stake to Axis Asset Management Company (AMC) and Premji Invest
for ₹482 crore (US$68 million) crore in September 2018. General Insurance partnered with
Policybazaar to sell travel insurance to overseas travellers in February 2019.

For the 4th quarter of the year 2018-19, the company had reported 11.3% increase in profit
before tax at ₹470 crore (US$66 million). It registered a drop in net profit at ₹75 crore for the
quarter ended in June 2019. In September 2019, the company was valued at over ₹12,000
crore (US$2 billion).

As of June 2019, SBI General Insurance's overall market ranking was 13th among about 30
insurers. It recorded 32.83% growth in gross written premiums in the financial year 2019
at ₹4,717 crore (US$661 million).

Aims n objective

We aim at creating a work culture that is engaging, energizing & exciting for our valuable employee.
Our values & our employee value proposition, serve to guide us on this journey to achieve the same.

Our prime focus is on creating a performance oriented culture that drives employees to strive for desired
result. Setting clear performance expectations, open and focused performance dialogue, precise and
objective targets evaluation and performance based rewards are some of the key features.

We also believe in continuous recognition and appreciation that motivates the employees to raise the
performance bar and live by the values of the organization. Our Rewards & Recognition program

49
spreads across regions against various parameters like values, productivity, performance excellence,
IAG Asia excellence etc.

But while delivering excellence, we don’t miss the Fun as it energizes and engages the employees to
give their best. Celebration of milestones, festivals, birthdays, participation in health & wellness
activities, offsite workshops, employee engagement competitions, programs involving family of the
employees etc are some of the fun at work initiatives.

We also actively imbibe a culture of giving by organising initiatives to serve a social cause like blood
donation camps, organizing health camps, supporting an NGO initiative etc.

General insurance product

Motor
 Motor Private car
 Motor two wheeler
 Long term two wheeler Insurance policy
 Motor act only – two wheeler (long term)
 Motor act only – Private car (long term)

Health
 Health insurance
 Aarogya premier
 Aarogya plus
 Aarogya Top up
 Group health insurance – SBI
 Critical illness

Travel
 Travel Insurance

Home
 Short term Home Insurance
 Long term Home Insurance

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Services provided by SBI to the customer

Saving Account
State Bank of India provides a range of savings accounts ranging from General Savings Account
to the Savings Plus Account.

Types of saving accounts

A) SBI Online Saving Account

1. SBI Insta Savings Account

SBI Insta Savings Account is an instant savings account, which brings the complete digital
banking ecosystem to your mobile. Now you can open a savings account in minutes with SBI
Yono mobile application or from Yono online portal in a matter of minutes.

SBI Insta Savings Account Features

Account Opening Process Paperless

Interest Rate Up to 4% p.a.*

51
 Transaction Limit Rs. 49,999

Aggregate Balance Limit Up to Rs. 1,00,000

Debit Card Free Rupay Debit Card

SBI provides 4% interest per annum on the account balance above Rs. 1 crore. For balances
up to Rs. 1 crore, the rate of interest provided is 3.5% per annum.

2. SBI Digital Savings Account

SBI Digital Savings Account is an online savings account which can be opened using the Yono
mobile app by SBI or Yono online portal. SBI Digital Savings Account comes with a paperless
account opening process. But, you will be required to visit the bank once to complete the account
opening process.

SBI Digital Savings Account Features

Account Opening Process Paperless

Interest Rate Up to 4% p.a.*

Withdrawal Limit Rs. 1,00,000

Debit Card Free Personalized Platinum Debit Card

Rs. 200 p.a. (waived for QAB above Rs.

Annual Maintenance Charge
25,000/-)

SBI provides 4% interest per annum on the account balance above Rs. 1 crore. For balances up to
Rs. 1 crore, the rate of interest provided is 3.5% per annum.

B) SBI Offline Savings Account

1. SBI General Savings Account

SBI General Savings Account Features

52
 Interest Rate 3.5% p.a.*

Safe Deposit Lockers Available Yes

Nomination Facility Available Yes

SMS Alerts & e-Statement Facility Yes

Eligibility Criteria Indian Resident (>18 Years)

SBI provides 4% interest per annum on the account balance above Rs. 1 crore. For balances
up to Rs. 1 crore, the rate of interest provided is 3.5% per annum.

2. SBI Savings Plus Account

SBI Savings Plus Account Features

Interest Rate 3.5% – 6.85% p.a.*

Minimum threshold limit Rs. 35,000

Minimum amount of transfer Rs. 10,000

Nomination Facility Available Yes

Internet Banking / Mobile Banking Yes

Eligibility Criteria Indian Resident (>18 Years)

SBI provides 4% interest per annum on the account balance above Rs. 1 crore. For balances
up to Rs. 1 crore, the rate of interest provided is 3.5% per annum. With Auto Sweep, you can
earn interest ranging from 6.70% to 6.85% for FD tenure of 1-5 years.

53
 SBI Home Loan

SBI Regular Home Loan can be availed for multiple purposes, including the purchase of ready
built property, under-construction property or pre-owned homes, construction of a house,
extension of a house, repair and renovation.

SBI Home Loan Features & Benefits:

 Lowest home loan interest rate starting from 7.90% of 5 basis points on SBI home loan
rates for women borrowers
 No prepayment penalty on floating rate home loans
 Longer loan tenure extending up to 30 years
 Both salaried and self-employed are eligible for SBI home loan
 Top up, overdraft and balance transfer facilities are available

Personal loan
SBI offers various types of personal loans such as Xpress Credit Loan, SBI Pension Loan, Xpress
Power and Pre-approved Personal Loans that cater to the needs of different borrowers. Personal
loans offered by SBI may be used for various purposes such as business expansion, debt
consolidation, foreign travel expenses, marriage, home renovation, medical emergency, etc.

54
Features of SBI Personal Loan
 Loan amount: SBI offers a loan amount as high as Rs. 20 lakh to fulfil various personal
needs with a single loan.
 Loan schemes: SBI offers specific loan schemes to different categories of borrowers
such as pensioners, salaried and self-employed.
 Flexible tenure: If you opt for SBI personal loan, you can repay it within a flexible
tenure ranging from 6 months to 6 years.
 Easy application: SBI Personal loan can be applied online without any hassle. The
process involves minimum documentation and quick processing.

loan against property

State Bank of India (SBI) is the largest public sector bank that provides a range of banking and
financial products and services to its customers in India and overseas. One of its prominent
offerings is its loan against property segment. The bank offers an assortment of loan against
property for its customers. SBI offers property loans for cash requirements against the
individual’s asset (or property).

A) Loan against Mortgage of Immovable property

The loan is issued against mortgage of properties which are immovable in nature. The
features of the loan offered are as follows:

 It is a loan issued for general purpose use and should not be utilized for speculative
purposes either in the real estate market or on the capital market
 The ratio of Equated Monthly Instalment and the Net Monthly Income should not
exceed more than 50%
 The minimum amount of loan granted under this type of scheme is Rs.10 lakhs
 The maximum loan amount offers under this scheme is Rs. 5 crore

55
  The maximum amount of the loan is 65% of the market value of the mortgaged
property keeping in mind that the Equated Monthly Instalment Ratio to the Net
Monthly Income does not exceed 50%.
 The repayment period is a maximum of 180 months.
 The customer can pre-pay the loan anytime whenever he/he has surplus cash without
worrying about any pre-payment charges. The bank does not charge any charges on
pre-payment of the loan.

B) Rent Plus Loan Against Property

The Rent Plus Loan-Against-Property from SBI provides assignment of future rents to the
commercial and residential property owners so that they can meet their monetary
requirements. The features of the loan are as follows:

 The amount of loan available under the scheme is calculated as the lowest of the
realizable value of the mortgaged property as per the valuation report of the bank’s
approved value or the maximum permissible amount of the scheme or 75% of the
total rent receivable for the lower of the residual lease period or the loan period less
the advance deposit, estimated amount of property tax, service tax, TDS and other
statutory dues of the period.
 The minimum amount of loan permissible under the scheme is Rs.50, 000 and the
maximum amount is Rs. 7.5 crores for metro cities and Rs. 5 crores for non-metro
cities.
 The margin reserved by the State Bank of India is 25% of the loan amount.
 The repayment period is a maximum of 10 years or the residual period of lease of the
property whichever is lower. The customer can choose any period of repayment
within this specified limit which will also determine the EMI amount payable by
him/her. If the customer wishes to avail a lower EMI, the tenure chosen should be
higher and if the customer can afford to make higher EMI payments, the tenure can be
chosen to be lower.
 Repayment of the EMI can be made either through Post-dated cheques drawn against
the applicant’s bank account or through Electronic Clearing System (ECS) facility or
by issuing a Standing Instruction (SI) to the bank to deduct the applicable EMIs as
and when they fall due from the applicant’s savings or current account. However, the
Standing Instruction facility is available only to those customers who have an existing
bank account with SBI.
 Processing fee is 2.02% of the loan amount + GST and service tax. Maximum amount
Rs. 1,01,865/- to be paid upfront as processing charges.
 There are no pre-payment charges and the customer can make pre-payments against
this SBI property loan to reduce the incidence of interest charged on the outstanding
balance of the loan amount

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 Gold Loans
The State Bank of India offers Gold Loans of up to Rs.20 lakhs to its existing customers against
their gold valuables. So anyone having gold assets which are laying idle can pledge these assets
to avail ready cash for meeting any kind of business or personal needs for which the individual is
facing a cash shortage. SBI Gold Loan is a multi-purpose loan which can be used for several of
requirements. The only prohibitive use of the loan is in speculative purposes or illegal acts. The
loan amount can also be used for personal expenses like marriage, education of child, building a
property, going on a leisurely vacation, etc.
Features of Gold Loan

o The existing customers of the SBI bank can avail this loan and it is not sold to anybody
else.
o Loan can be availed for a maximum amount of Rs.20 lakhs. The minimum amount of loan
which can be availed is Rs.10,000 in rural and semi-urban areas and Rs.20,000 for metros
and urban areas. So the applicant can borrow any amount of the loan as per his requirement
as long he stays within the specified minimum and the maximum limits of the loan.
o Gold ornaments or jewellery are to be pledged to the bank for availing the loan. Gold coins
issued by SBI can also be pledged to avail a loan under this scheme.
o The process of sanctioning the loan and disbursing of the amount is fast and simple. Very
simple documents which are easily available with the individual are asked to be submitted
and once submitted, the loan is issued instantly.
o The rate of interest charged on the loan is low which can suit the pockets of the borrowers
when they are making the payment of the loan instalment.
o The bank maintains a margin of 25% of the value of the gold. Thus, the applicant ends up
receiving 75% of the value of his gold pledged with the bank while the remaining 25% is
retained by the bank as margin.
o The maximum tenure for repaying the loan instalments is 30 months for demand loan and
36 months for overdraft. The instalment payment would commence one month post the
date the disbursement of the loan is made and would be required to be paid off within the
stipulated tenure. The individual may choose a lower tenure of repayment like 1 or 2 years
but the period or repayment cannot exceed 2.5 years and the loan has to be repaid within
30 months or 36 months depending on loan type.
o The security required for availing the loan is the gold ornaments including gold coins which
are issued by the bank.

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 Education loan
State Bank of India is an Indian multinational banking and financial service company. It is
owned by the government and therefore follows government’s push for education passionately.
State Bank of India has many attractive schemes that cater to foreign bound students, domestic
students, and students who wish to take skill development classes. SBI offers education loan at
an attractive interest rate with student-centric attitude when it comes to marking tenure of
education loan.

Features
 State Bank of India charges no processing fees when the student pursues higher
education in India or when the loan amount sought is below ₹ 20.00 Lakh for foreign
education.
 State Bank of India also doesn’t charge any hidden fees on the loan amount sought.
 The bank realises the potential of students that are able to secure admission in premier
institutes and offers them special concessions for the same.
 The maximum tenure is 15 years on SBI Education Loans.
 On top of that State Bank of India is one of India’s oldest and most trusted banks so
applying for an education loan from the bank is a reliable venture.

Two wheeler loan

58
In India, two-wheelers are more than just a commuting choice; they are in many cases a
necessity. Especially due to poor and mostly overcrowded public transport in most major cities,
owning a two-wheeler has become a necessity for Indians. In many ways, a two-wheel transport
is a greener as well as cheaper alternative to owning a car or hiring a cab in fact in some parts
of India, commuting using a motorcycle or scooter is even cheaper than using public transport.

Benefits

The following are some of the key benefits that you can expect to receive when availing a SBI
2-Wheeler loan:

 No need to pay an advance EMI in order to avail the facility.

 Benefit of one of the lowest loan interest rates in India.
 Flexible EMI payment option on any day of the month.
 Benefit of extremely low processing fees of around 1% of loan sanctioned.
 Complimentary accidental insurance through SBI General Insurance is provided to the
loan applicant.
 Option available to applicant for availing SBI Life managed life insurance scheme
(discounted rates may apply).
 Flexible repayment tenure of up to 36 months or 3 years.

Features

 As a result of the low interest rates, the applicants also benefit from the unbelievably
low EMIs.
 Total loan value provided is up to 85% of the market price of the 2 wheeler in question.
 Interest applicable to the 2-wheeler loan is calculated using the daily reducing balance
methodology.
 In case of salaried applicant, the loan amount sanctioned can be no more than 6 times
of the Net Monthly Salary of the applicant. Net monthly salary refers to in hand income
obtained by the individual after all tax deductions have been made on the applicant’s
gross income.
 For self-employed individual applicants, max. 2 wheeler loan amount sanctioned equals
50% of the Annual Net Income of the individual according to the most recent tax filing
made by the applicant. Net annual income refers to the amount remaining subsequent
to all tax deductions made to the gross salary.
 In case the applicant derives his/her income from agriculture, the net annual income is
computed by SBI on the basis of various criteria including but not limited to average
income level as per demographic of the area, crop yield data, cropping pattern, total
land holdings of the applicant as well as the type of agricultural activity. Some of the
key types of agricultural activity accepted by SBI as capable of generating agricultural
income include orchards, poultry, dairy and farming among others.
 Though not always mandatory, the bank may demand security for extending the two-
wheeler loan to the applicant as per applicable rules and regulations which are subject
to periodic change.

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 Fixed deposit Account

Fixed deposits are a high-interest -yielding Term deposit and offered by banks in India. The
most popular form of Term deposits are Fixed Deposits, while other forms of term Deposits
are Recurring Deposit and Flexi Fixed Deposits (the latter is actually a combination of Demand
deposit and Fixed deposit.

Recurring Account
State Bank of India or SBI offers a wide range of safe deposit schemes such as recurring deposits
that offer assured returns to its customers along with the affordability factor. Investing in a recurring
deposit is a good choice for those who do not have a regular income but they want to increase their
saving. With the guarantee of assured returns based on the prevailing SBI RD interest rates,
recurring deposits prove a logical choice for the risk-averse investors with an irregular income.

SBI Credit Card

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SBI Card offers a wide range of credit cards with unmatched benefits, discounts and deals. One
can find an SBI credit card for shopping, dining, travel or movies to meet his/her specific
requirements. All SBI credit cards provide excellent benefits to users in the form of rewards,
cashback, airport lounge access and a lot more.

SBI Debit Card

State Bank of India offers a wide array of debit cards suitable for lifestyle needs of all and
sundry. SBI debit cards can be used to transact at more than 1 lakh ATMs and POS terminals
worldwide. Customers are entitled to 5 free ATM transactions every month along with special
benefits and signature privileges such as insurance, discount vouchers, reward points on every
transaction and much more. SBI debit cards can be used for booking train or flight tickets,
movie tickets, making online purchases and dinner reservations, travelling, retail expenditures
and more. In order to ensure safety of online transactions, SBI debit cards are secured with 2
factor authentication using Verified by Visa/Master Card Secure Code.

Benefit

1. Use your SBI card for shopping at over 5 lakh merchant outlets established within India.
2. Earn assured rewards with State Bank of India’s Debit card Loyalty Program.
3. Keep yourself and your assets safe. Get complimentary insurance coverage with your
debit card.
4. Use your SBI debit card to transact at online merchant outlets and retail stores across
the globe.

Services provide by SBI to the Government

Direct Tax:-

Direct Taxes can be paid in Cash, through a Cheque or online through Internet Banking or
ATM-cum-debit Card of SBI.

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Bank's internet website www.onlinesbi.com provides the facility of online payment of all direct
taxes/indirect taxes/ State Govt. Taxes and any other fees payable, details of facilities are
available at www.onlinesbi.com on the SBI

E-Tax link. . Users can use their Internet Banking facility or ATM-cum-Debit card for Tax
Payment. User will have to visit the respective Govt. Website or can access
through www.onlinesbi.com

Indirect Tax:-

State Bank provides the facility to pay indirect taxes online through onlinesbi.com As a tax
payer, you need to have a bank account enabled for net banking facility with transaction rights
in anyone of our branches.

Passport Seva Kendra:-

The applicant will have to first deposit fees and then take an appointment at Passport Seva
Kendra (PSK).Passport Fees can be deposited through cash/SBI Internet banking and
Debit/Credit Card (Visa/Master) of all banks.

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