1

AProjectReport

On

BankingandInsurance

Undertakenat

StateBankofIndia

By

NitaPatel

(MBASEMII)

(RollNo.10)

VEERNARMADSOUTHGUJARAT

UNIVERSITY

SURAT395007

DBIM

DECLARATION

2

IdeclaredthattheprojectentitledBankingandInsurance.

SubmittedforthepartialfulfillmentoftheSEMIIinMasterof

BusinessAdministration[MBA]degreeismyoriginalworkandcarried

outatSBI,BhadeliBranch,Valsad.

Thisprojectoranypartofithasnotbeenpreviouslysubmittedfor

anydegreetoanyotherinstitutionoruniversity.

NITAPATEL

Date:13/07/2013

Place:SURAT

ACKNOWLEDGEMENT

IhaveagreatfeelingofsatisfactionwhenIamthankingthosepersonswithoutwhomthis

projectmightnothavebeencompleted.Thepeople,whohavehelpedme,guidemeand

encouragedmetosuccessfullycompletemyproject,thosewhohavehelpedandsupported

meineveryaspectsofmylife.

IamthankfultoheadofDepartmentDr.RenukaGargewhohashelpedusinourproject

andtoallmyprofessorsandstaffmembersoftheDepartmentwhohelpeddirectlyor

indirectlyinmyproject.

3

IexpressmydeepdenseofgratitudetoMr.B.G.Patel(BranchManagerofSBIBhadeli,

Valsad)andMr.H.M.Patel,forhiscontinuousguidanceandinspirationinmylearning.Itis

duetohiscooperationthatIhavecompletedthisprojecttomysatisfaction.

IamalsothankfultoMr.R.S.Chauhan(AssistantGeneralManagerofSBIBhadeli,Valsad),

Mr.H.M.Patel,andotheremployeefortheirsupport.

NowIwanttoshowmygratitudetowardsallofthemwhohavealwaysbeensupportingme

fortheentireworkIIhavedone.AndatlastIwanttothanksmyparentsforgivingmesucha

wonderfulopportunity,helpedandsupportedmethroughoutmylife.Theyhavebeen

inspirationformylife.

IamverygladthateverymembersoftheStateBankofIndiaareveryCooperativeanddo

helpmetofulfillmyproject.

Finally.Iexpressmygratitudetoallmywellwishersandfriends,whohavedirectlyor

indirectlyhelpedmeinmyprojectwork.

NITAPATEL

EXECUTIVESUMMARY

Forthestatebankofindiatheircustomersareveryimportantandaimofthaebankwas

thatAcustomeristhemostimportantvisitorontheirpremises.Heisnotaninterruptionof

theirwork.Heisnotanoutsiderintheirbusiness.Heispartofit,theyarenotdoinghima

favourbyservinghim.Heisdoingthemafavourbygivingthemanopportunitytodoso.

4

Theybelievethatacustomerisnotsomeone,toarguewith.Nobodyeverwonan

argumentwithacustomer.Acustomerispersonwhobringsthembyhiswants.Itistheirjob

tohandlethemprofitablytohimandthemselves.

Thefirstbankswerethemerchantsofancientworldthatmadeloanstofarmersand

tradersthatcarriedgoodsbetweencities.Thefirstrecordsofsuchactivitydatesbackto

around2000BCinAssyriaandBabylonia.LaterinancientGreeceandduringtheRoman

Empirelenderbasedontempleswouldmakeloansbutalsoaddedtwoimportantinnovations

thatofaccepteddepositsandchangingmoney.DuringthisperiodthereisancientChinaand

separatelyinancientIndia.

Banking in the modern sense of the word can be traced to medieval and early

RenaissanceItaly,totherichcitiesinthenorthlikeFlorence,VeniceandGenoa.TheBardi

and Peruzzi families dominated banking in 14th century Florence, establishing branches in

manyotherpartsofEurope.PerhapsthemostfamousItalianbankwastheMedicibank,set

upbyGiovanniMediciin1397.

The development of banking spread through Europe and a number of important

innovations tookplace inAmsterdamduring theDutchRepublic in the16th century and in

Londoninthe17thcentury.Duringthe20thcenturydevelopmentsintelecommunicationsand

computingresultinginmajorchangestowaybanksoperatedandallowingthemdramatically

increase in size and geographic spread. The Late2000s financial crisis saw significant

numberofbankfailures,includingsomeoftheworld’slargestbanksandmuchdebateabout

bankregulation.

StateBankofIndiaisthelargestIndianbankingandfinancialservicescompany(by

turnoverandtotalassets)withitsheadquartersinMumbai,India.Itisstateowned.Thebank

traces its ancestry toBritish India, through the ImperialBank of India, to the founding in

1806 of the Bank of Calcutta, making it the oldest commercial bank , in the Indian

Subcontinent. Bank ofMadras merged into the other two presidency banks, Bank of and

BankofBombaytoformImperialBankofIndia.ThegovernmentofIndianationalizedthe

Imperial Bank of India in 1955, with the reserve Bank of India taking a 60% stake, and

renamedittheStatebankofIndia.In2008,thegovernmenttookoverthestakeheldbythe

ReserveBankofIndia.

SBILife Insurance isa jointventurebetweenStateBankof IndiaandBNPParibas

AssuranceofFrance. It is the first private life insurance company tomakeprofit for three

consecutive years, and to receive AAA rating from CRISIL signifying highest financial

strength.In2007surveyconductedbyACNielsenORGMARGandEconomictimes,ithas

beenvotedasthemosttrustedprivatelifeinsurancebrand.

As of 31st December 2009, the bank had 151 overseas offices spread over 32

countries.IthasbranchesoftheparentinColombo,Dhaka,Frankfurt,HongKong,Tehran,

Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, New York, Osaka,

SydneyandTokyo. It hasoffshorebankingunits in theBahamas,Bahrain, andSingapore,

andrepresentativeofficesinBhutanandCapeTown.ItalsohasanADBinBoston,USA.

5

TABLEOFCONTENT

ChapterNo. Particulars PageNo.

Acknowledgement

Certificate

Declaration

Chapter1 1.1Objectiveofthestudy

1.2Limitationofthestudy

1.3ResearchMethodology

Chapter2 Introduction

6

Chapter3 ProfileoftheBank

Conclusion

Bibiliography

Experience

Chapter1

1.1OBJECTIVESOFTHESTUDY

ThemainobjectiveofthisprojectispartialfulfillmentofMBAdegree.

TounderstandtheBankingSystem.

7

To study how new distribution channels such as Internet Banking, ATM facility,

PhoneBankinghavechangedthefaceoftheBankingIndustry.

Tounderstandthebankingsystemaswellasinsurancescheme.

1.2LIMITATIONOFTHESTUDY

Thestudycouldnotmakethatcomprehensiveduetotimeconstraints.

Whentheygavesomedetails,theysometimesusedverytechnicalwordswhichwere

difficultformetounderstandit.

Duetobusyscheduleofofficerswasnotprovidedwithinformationuptothatextent

thatonerequires.

Thereislimitedtimeperiodfortraining,sothatIcannotgotalltheinformationofthe

banking.

1.3RESEARCHMETHODOLOGY

This project report is based on the two types of the data i.e. Primary Data and

SecondaryData.

AspertheResearchMethodology,IhavecollectedtheinformationfromPrimaryas

wellasSecondarysources.

ForthePrimaryDatahavetakenthehelpofMr.B.G.Patel(BranchManager,SBI)

NowformySecondaryDataIhavetakenhelpofbooks,magazinesandwebsites.The

mostofdatathatincludedintheprojectisfrombooksandwebsites.

1.4SECONDARYDATACOLLECTEDFROM

VariousWebsites

www.statebankofindia.com

www.wikipedia.org

www.moneycontrol.com

8

www.economictimes.com

www.sbilifeinsurance.com

www.sbigeneral.com

Chapter2

INTRODUCTIONOFBANKING

Thefirstbankswerethemerchantsofancientworldthatmadeloanstofarmersand

traders that carried goods between cities. The first records of such activity dates back to

around 2000BC inAssyria andBabylonia. Later in ancientGreece and during theRoman

9

Empirelenderbasedontempleswouldmakeloansbutalsoaddedtwoimportantinnovations

thatofaccepteddepositsandchangingmoney.DuringthisperiodthereisancientChinaand

separatelyinancientIndia.

Banking in the modern sense of the word can be traced to medieval and early

RenaissanceItaly,totherichcitiesinthenorthlikeFlorence,VeniceandGenoa.TheBardi

and Peruzzi families dominated banking in 14th century Florence, establishing branches in

manyotherpartsofEurope.PerhapsthemostfamousItalianbankwastheMedicibank,set

upbyGiovanniMediciin1397.

The development of banking spread through Europe and a number of important

innovations tookplace inAmsterdamduring theDutchRepublic in the16th century and in

Londoninthe17thcentury.Duringthe20thcenturydevelopmentsintelecommunicationsand

computingresultinginmajorchangestowaybanksoperatedandallowingthemdramatically

increase in size and geographic spread. The Late2000s financial crisis saw significant

numberofbankfailures,includingsomeoftheworld’slargestbanksandmuchdebateabout

bankregulation.

StateBankofIndia(SBI)isamultinationalbankingandfinancialservicescompany

based in India. It is a governmentowned corporation with its headquarters in Mumbai,

Maharashtra.As ofDecember 2012, it had assets ofUS$501 billion and 15,003 branches,

including157foreignoffices,makingitthelargestbankingandfinancialservicescompany

inIndiabyassets.ThebanktracesitsancestrytoBritishIndia,throughtheImperialBankof

India,tothefoundingin1806oftheBankofCalcutta,makingittheoldestcommercialbank

in the Indian Subcontinent. Bank of Madras merged into the other two presidency

banks—BankofCalcuttaandBankofBombay—toformtheImperialBankofIndia,which

inturnbecametheStateBankofIndia.GovernmentofIndianationalizedtheImperialBank

of India in1955,withReserveBankof India takinga60%stake,andrenamed it theState

Bank of India. In 2008, the government took over the stake held by theReserveBank of

India.

SBI was ranked 285th in the Fortune Global 500 rankings of the world's biggest

corporationsfortheyear2012.SBIprovidesarangeofbankingproductsthroughitsnetwork

ofbranchesinIndiaandoverseas,includingproductsaimedatnonresidentIndians(NRIs).

SBIhas14regionalhubsand57ZonalOfficesthatarelocatedatimportantcitiesthroughout

thecountry.SBI isa regionalbankingbehemothandhas20%market share indepositsand

loans among Indian commercial banks.TheStateBankof Indiawasnamed the 29thmost

reputed company in the world according toForbes 2009 rankings andwas the only bank

featuredinthe"top10brandsofIndia"listinanannualsurveyconductedbyBrandFinance

andEconomicTimesin2010.

10

2.1BANKINGININDIA

BankinginIndiaoriginatedinthelastdecadesofthe18thcentury.ThefirstbankswereThe

GeneralbankofIndia,whichstartedin1786,andBankofHindustan,whichstartedin1790,

botharenowdefunct.TheoldestbankinexistenceinIndiaistheStateBankofIndia,which

originatedinthebankofCalcuttainJune1806,whichalmostimmediatelybecametheBank

of Bengal. This was one of the three presidency banks, the other two being the Bank of

BombayandtheBankofMadras,allthreeofwhichwereestablishedunderchartersfromthe

British East India company. For many years the presidency banks acted as quasicentral

banks,asdidtheirsuccessors.Thethreebanksmergedin1921tofromtheImperialBankof

India,whichuponIndia’sindependence,becametheStateBankofIndia.

Chapter3

PROFILE

OF

STATEBANKOFINDIA

11

State Bank of India is the largest Indian banking and financial services

company (by turnover and total assets) with its headquarters in Mumbai, India. It is state

owned.ThebanktracesitsancestrytoBritishIndia, throughtheImperialBankofIndia,to

thefoundingin1806oftheBankofCalcutta,makingittheoldestcommercialbank,inthe

IndianSubcontinent.BankofMadrasmergedintotheother twopresidencybanks,Bankof

andBankofBombaytoformImperialBankofIndia.ThegovernmentofIndianationalized

theImperialBankofIndiain1955,withthereserveBankofIndiatakinga60%stake,and

renamedittheStatebankofIndia.In2008,thegovernmenttookoverthestakeheldbythe

ReserveBankofIndia.

SBIprovidesarangeofbankingproductsthroughitsvastnetworkofbranchesinIndia

and overseas, including products aimed at nonresident Indians (NRIs). The State Bank

Group,withover16000branches,hasthelargestbankingbranchnetworkinIndia.Italsohas

around 130 branches overseas. With an asset base of $352 billion and $285 billion in

deposits,itisaregionalbankingbehemothandisoneofthelargestfinancialinstitutioninthe

world.IthasamarketshareamongIndiancommercialbanksofabout20%indepositsand

loans.

TheStateBankofIndiais29thmostreputedcompanyintheworldaccordingtoForbes.

AlsoSBIistheonlybankfeaturedinthecoveted“Top10branchofIndia”listinanannual

surveyconductedbyBrandFinanceandTheEconomicTimesin2010.

TheStatebankofIndiaisthelargestoftheBigFoursbankofIndia,alongwithICICI

Bank,PunjabNationalBankandHDFCBankitsmaincompetitors.

StateBankofIndia(SBI)isamultinationalbankingandfinancialservicescompanybasedinIndia.It isagovernmentownedcorporationwithitsheadquartersinMumbai,Maharashtra.AsofDecember2012, ithadassetsofUS$501billionand15,003branches, including157foreign offices, making it the largest banking and financial services company in India byassets.

The bank traces its ancestry to British India, through the Imperial Bank of India, to thefoundingin1806oftheBankofCalcutta,makingittheoldestcommercialbankintheIndianSubcontinent. Bank of Madras merged into the other two presidency banks—Bank ofCalcuttaandBankofBombay—toformtheImperialBankofIndia,whichinturnbecametheStateBankof India.Governmentof Indianationalised the ImperialBankof India in1955,withReserveBankofIndiatakinga60%stake,andrenamedit theStateBankofIndia.In2008,thegovernmenttookoverthestakeheldbytheReserveBankofIndia.SBIwasranked285th in the Fortune Global 500 rankings of the world's biggest corporations for the year2012.

12

SBI provides a range of banking products through its network of branches in India andoverseas,includingproductsaimedatnonresidentIndians(NRIs).SBIhas14regionalhubsand57ZonalOfficesthatarelocatedatimportantcitiesthroughoutthecountry.

SBIisaregionalbankingbehemothandhas20%marketshareindepositsandloansamongIndiancommercialbanks.

TheStateBankofIndiawasnamedthe29thmostreputedcompanyintheworldaccordingtoForbes2009rankingsandwastheonlybankfeaturedinthe"top10brandsofIndia"listinanannualsurveyconductedbyBrandFinanceandTheEconomicTimesin2010.

3.1HISTORYOFSBI

13

Therootof theStatebankof India rest in thefirstdecadeof19thcentury,whenthe

BankofCalcutta,latterrenamedtheBankofBengal,wasestablishedon2June,1806.The

BankofBengalwasoneofthreePresidencybanks,theothertwobeingtheBankofBombay

(incorporatedon1stJuly1843).All threePresidencybankswereincorporatedasjointstock

companiesandweretheresultoftheroyalcharters.Thesethreebanksreceivedtheexclusive

righttoissuePaperCurrencyin1861withthePaperCurrencyAct,arighttheyretaineduntil

the formation of the Reserve Bank of India. The Presidency banks amalgamated on 27

January,1921,and therecognizedbankingentitytookas itsname:ImperialBankof India.

TheImperialBankofIndiaremainedajointstockcompany.

PursuanttotheprovisionsoftheStateBankofIndiaAct(1955),theReserveBankof

India,which is India’scentralbank,acquiredacontrolling interest in theImperialBankof

India.ThegovernmentofIndiarecentlyacquiredtheReservebankofIndia’sstakeinSBIso

as to remove any conflict of interest because theRBI is the country’s banking regulatory

authority.

In 1959, the government passed the State Bank of India (subsidiary Banks) act,

enabling the State Bank of India to take over eight former state associated banks as its

subsidiaries.On13September2008,thestateBankofSaurashtra,oneofitsassociatebanks,

mergedwiththeStateBankofIndia.

SBIhasacquiredlocalbanksinrescues.Forinstance,in1985,itacquiredtheBankof

Cochin inKerala,which had 120 branches. SBIwas the acquirer as its affiliate, the State

BankofTravancore,alreadyhadandextensivenetworkinKerala.

On1stJulyStateBankofIndiawasconstitutedundertheStateBankofIndiaAct

1955, for thepurposeof takingover theundertakingandbusinessof the ImperialBankof

India.TheImperialBankofIndiawasfoundedin1921undertheImperialBankofIndiaAct

1920.TheBank transacts general banking business of every description including, foreign

exchange,merchantbankingandmutualfunds.

1959

OnSeptemberStateBankofIndia(SubsidiaryBank)Actwaspassed.OnOctoberStateBank

ofHyderabadbecomethefirstsubsidiaryofSBI.

1960

Duringthisperiod,StateBankofJaipur,StateBankofBikaner,StateBankofIndore,State

BankofTravancore,StateBankofMysore,StateBankPatialaandStateBankofSaurashtra

becamesubsidiariesofthebank.

1962

14

TheBhorStateBankLtdwasAmalgamatedwiththeBankbringthetotalnumberofminor

Stateassociatedbankssoamalgamatedtofive.AschemeforamalgamationoftheBankof

AundhLtd.,wasalsoapproved.On20thAugust,theUnitBankLtd.Chennaiwastakenover

bytheBank.

1963

InoctoberBranchinLondonbecomebankerstotheIndianHighCommission,therebytaking

overafunctiontillthenperformedbytheofficeofRBI.Oftheotherbusinesstransactedby

theBranch,animportantaspectwasmediumtermloansmostlytoIndianshipping

companies.

1969

OnNovember8ththeBankofBeharLtdwasamalgamated.

1972

Amerchantbankingdivisionwassetupinthecentralofficetocatertopromotionalneedsof

thecorporatesector.

1977

DuringtheyearbankintroducedthePerennialPensionPlanSchemeunderwhichifthe

depositorsmakearegularmonthlypaymentofafixedamountforaperiodof84to132

months,theybecomeeligiblefromthe86thand134thmonthsrespectivelyforgettinga

monthlypensionofpredeterminedamountforever.

Inordertomeetallthedevelopmentalneedsofthevillagesincludingtheirsocialandcultural

needs,thebanklaunchedanintegratedruraldevelopementprogramme,aimedatnotonly

coveringthecreditneedsofagricultureandagriculturalactivitiesandvillageindustries,but

alsohousingandsocialactivities.

1980

BankintroducedthecashCertificateSchemeunderwhichdepositcertificateareissuedfora

fixedperiodonpaymentoftheissuepricespecifiedfortherespectivematurityperiodandthe

facevaluecorrespondingtotheissuepriceplusinterestcompoundedatquarterlyintervalsis

paidonmaturity.ThecertificatesareissuedforthefacevalueofRs100,Rs1000,Rs10,000

andRs50,000maturingafter29,65,84and120months.

1982

15

TheNonResidentInvestmentCellwassetup,whichhadstreamlinedtheworkingoperations

ofthenonresidentinvestmentsectionsatimportantcenters.

1983

SBIlaunchedselfemploymentscheme,forprovidingselfemploymenttoeducated

unemployedyouth.Educatedunemployedyouthsareencouragedtoundertakeself

employmentventuresinindustry,servicesandbusiness.

1984

Thebankprovideneedbasedrehabitationassistancetolargeandmediumsickindustrial

units.

1985

Duringtheyear,companysetupadatabankofsickunitsavailablefortakenoverbyhealthy

units.Witheffectfrom26thAugust,theBankofCochinLtdwith108brancheswasalso

amalgamatedwiththeBank.

(i)AllsharesintheCapitaloftheImperialBankofIndiawasvestedintheRBI.TheSBIwas

registeredwithanAuthorisedcapitalofRs.20crores,andanissuedandpaidupcapitalof

Rs.562,50,000dividedinto562,500sharesofRs.100each.

(ii)Everypersonwhoonthe30thJune,1955,wasregisteredasaholderofsharesinthe

ImperialBankofIndiawaspaidbytheReserveBankofIndia.

44,37,500No.ofsharesissuedatapremiumofRs160pershare.

1986

Attheendoftheyear324sickunitswithanoutstandingofRs1069croreswereassisted.Of

these,107unitswereconsideredviableand60fromthemwereplacedunderregularnursing

programme.

On1stAugustanewsubsidiarynamedSBICapitalMarketwasfunctioningindependently,

tookupleasingbusinessandcertainothernewservices.

100,00,00No.ofsharesissuedataprem.ofRs160pershare.

1987

16

Uptotheendoftheyearthebankhadsponsored30RegionalRuralBankscovering66

backwardandunderbankeddistrictsinthecountry.

Intermsofdeployment,theadvancesportfolioofoverseasofficesrosetoRs5,767crores.

InvestmentsininterbankmoneymarketsandalsoinprimesecuritiesamountedtoRs2,670

croresbytheendoftheyear.

1988

DuringtheyearbankinitiatedUPTECHanIndustrialTechnologyGrouptodirectandguide

programmesaimedatfacilitatingtechnologyupgradation.

Alsoaschemetodevelopentrepreneurshipamongwomanunderthename"ShreeShakti"

waslaunched.Severalconcessionsinrespectofmarginandrateofinteresthavebeenbuilt

intothepackage.ThreepilotprogrammeswerelaunchedatChennai,Calcutta,and

Hyderabad.

On20thSeptember,thebankinaugurated`SBINET,'anintegratedcommunicationproject

aimedatimprovingcustomerservice,operationalefficiencyandadministrativeconvenience.

Thenetworkhasbeendesignedtohandlevoice,faxdataandmanagesthroughthetrunk

routesandexchangesinimportantcentres.

Thebanksponsored30RRB'scovering66divisionsinthecountry.74brancheswereopened

raisingthebranchnetworkto2,306.

1989

SBICAP,intheircapacityasTrusteeandManagerofMutualFund,launchedtwoscheme

viz.,MangnumMonthlyIncomeScheme1989andMagnumTaxServiceScheme1990.

DuringthesameperiodSBIinassociationwithMorganStanleyAssetManagementInc.of

USA,launchedtheIndiaMagnumFund.

1990

NewproductslaunchedduringtheyearincludedaRegularIncomeScheme,offeringan

assuredreturninexcessof12%andthefirstPureGrowthSchemeaimedatcapital

appreciation.ASecondoffshorefundofUS$12millioncalledAsianConvertibleandIndian

FundwaslaunchedinassociationwithAsianDevelopmentBank,Manila.

DuringKharif1990,thebankintroducedanagriculturalcreditcard,knownasSBIGreen

Cardtogivegreaterliquidityandflexibilitytofarmersinprocuringagriculturalinputs.The

schemewasintroducedonapilotbasisin125intensivecentrebranches.

17

Asaton31stMarch,SBIMFhadover3,40,000IndianinvestorsandaboutRs475croresby

wayofinvestibledomesticfunds.

1991

DuringFebruarythebanksetupanewsubsidiarycalledtheSBIFactorsandCommercial

ServicedPvt.Ltd.forrenderingfactoringservicestotheindustrialandcommercialunitsin

WesternIndia.

1992

Thebanksponsored30RRBswithanetworkof3189officescovering102backwardand

underbankeddistrictsofthecountry.AsumofRs15.25croreswascontributedtowardsthe

sharecapitaloftheRRBs.

Duringtheperiodbankintoduced`Stockinvest'scheme.Alsointroduceda`GyanJyoti'that

replacedearliereducationloanschemesandofferssubstantialaugmentedassistanceto

studentspursuinghigherstudies.MoreoverdedicatedNRIbranchesequippedwithStateof

thearttechnologywassetupatMumbaiandDelhitocatertothespecialneedsofNRI

residents.

1993

Duringtheyearasapartofitsoverseasexpansionthebankestablishedrepresentativeoffice

inTashkent.

DuringDecember,thebankissued124,000,000equitysharesofRs.10eachforcashata

premiumof90pershareofwhich245,00,000shareseachwerereservedforallotmentona

preferentialbasistoIndianFinancialInstitutionsandIndianMutualFunds.Balanceissuedto

thepublic.

Simultaneouslyitcameoutwithanotherissueof50,00,00012%unsecuredredeemable

floatingratebondsinthenatureofpromisorynotesofthefacevalueof1000each.

OversubscriptionuponafurtheramountofRs500crores(inallRs1000crores)wastobe

allowed.Thefacevalueofeachbondwouldberedeemedatparattheexpiryof10years

fromthedateofallotment.IntheeventthattheStateBankdecidestoexerciseitsoptionto

callupthebondstheywouldberedeemedattherateof5%attheendof5thyear,at3%at

theendof7thyearand1%attheendof9thyear.

1994

18

358sickunitswiththebankwerereferredtotheBIFRincluding55publicsectorunits.

Approvedrehabilitationpackagesimplementedin87units.

1,80,463No.ofShareskeptinabeyancewereissued.

1995

351sickunitswiththebankwerereferredtotheBIFRincluding66publicsectorunits.

Approvedrehabilitationpackagesimplementedin112units.

683No.ofshareskeptinabeyancewereallotted.

1996

On3rdOctobertheBankIssued261,45,000GDRsamountingto5,22,90,000equityshares.1

GDRisissuedto2equityshares.TheissuepriceofGDRwasUS$14.15perGDR.

1997

Sharesissuedtoemployeesofthebankbearingdistinctivenumbers46,26,00,001to

47,46,00,000willnotbegooddelivery.Therightsissuewasfor12croreequitysharesata

premiumofRs.50aggregatingRs.720croreinadditiontoafurtherissueof1.2croreequity

sharesofRs.10atapremiumofRs.50aggregatingRs.72croreforStateBankemployees.

ThepriceoftherightshadbeenRs.60pershare.

SBISecuritiesLtdthe100percentstockbrokingsubsidiaryofSBI,hasrecentlyreceivedthe

muchawaitedletterofincorporationfromtheRegistrarofCompanies.Followingthis,both

SBIandADBwillpickuptheirrespectivesharesinthenewstockbrokingfirm.SSLwill

haveanequitybaseofRs.50crore.

TheStateBankofIndiahastiedupwithGECapitaltofloataventureinMumbai.StateBank

signedthememorandumofunderstandingwithGECapsinMarch.

StateBankwilltieupwitheitherVISAorMastercardorevenbothforthefranchise

network.GECapsthroughthisjointventurewillbeimpartingtechnology,creditcard

expertiseandpaymentcardmechanism.

1998

19

StateBankofIndiawillkickstartitscreditcardbusinessonJuly1byfloatingtwojoint

ventureswithGECapital.Thelargestfinancialintermediaryinthecountrywillsignthejoint

ventureagreementwithGECapsinthelastweekofJanuary.

TheStateBankofIndiaonJan27kickedoffitsforayintothepaymentcardsbusinesswitha

jointventureagreementwithUSbasedfinancialservicesgiant,GeneralElectricCapital

Corporation(GECapital).

StateBankofIndia(SBI)onJune24signedanexclusiveagreementwiththeworld'slargest

paymentsystemVisaInternationalforpaymentcardsinIndia.Theagreementwassigned

inMumbaibetweentheSBImanagingdirector,MrOPSethia,andthegeneralmanagerand

executivevicepresident(SouthEastAsia)ofVisa,MrJamesGMurray.

1999

StateBankofIndia(SBI)hasbaggedthemandatetosyndicatethe$120millionloanforthe

NationalThermalPowerCorporation(NTPC).

TheStateBankofIndia(SBI)proposestotakeupthelifeinsuranceandgeneralinsurance

businessoncethesectorisopenedup.

StateBankofIndiahastiedupwithitsassociatebankstomarkettheSBICard.TheSBIhas

tiedupwithStateBankofPatialainChandigarhandStateBankofMysoreinBangaloreto

helpmarketitscreditcard.

SBIproposestointroduceavalueaddedserviceforcardholderswherebythecreditcardcan

alsobeusedasanATMcard.

TheStateBankofIndiawilltieupwithinternationalinvestmentbankerCreditSuisseFirst

Bostonandthreedomesticpublicsectorbankstoformagoldassayingventure.

TheStateBankofIndia(SBI)hasdecidedtotakeoverSBIHomeFinance(SBIHF),withits

assetsandliabilities.Havingthelargeststake,SBIhasbeenweighingvariousoptionsfor

bailingoutthejointventurecompanywhichhasslippedintohugelosses.

2000

TheBankhasembarkedupontheexpansionofitsATMnetworkinthetwincitiesof

HyderabadandSecunderfabad.

TheBankhasbecomethefirstgovernmentownedfinancialinstitutiontojointherankof

companiesdeclaringinterimdividend.

TheBankhasproposedtocomeoutwithanissueunderprivateplacementofunsecured,non

20

convertible,subordinatedbondsinthenatureofpromissorynotesofRs1lakheach

aggregatingRs600croreswithanoptiontoretainoversubscriptionofuptoRs40crores.

TheBanklaunchedthe"Metal(Gold)LoanScheme"inCoimbatore.Thisisthethirdscheme

tobeintroducedbySBI.

TheBankhasbecomethefirstpublicsectorbanktoofferfixedratehomeloans.

2001

TheBankhassignedanMoUwithCardifS.A.forthebank'slifeinsurancebusiness.The

BankhasintroducedVoluntaryRetirementSchemeforeligibleemployees,openfromthe

15thJanuary2001tothe31stJanuary2001.TheBankhasincorporatedasubsidiary`SBILife

InsuranceCompanyLtd.,'fordoinglifeinsurancebusiness.TheBankwillinstall10more

AutomatedTellerMachinesinthenortheasternregioninadditiontotheonealready

commissionedatGuwahati.StateBankofIndialaunchedthreemoreATMsinBangalore.Mr

YRadhakrishnanhasbeenpromotedtothepostofmanagingdirectorofStateBankofIndia

SBICardshassetupaspecialinsurancecellinAhmedabadforfacilitatingtheclaimsofSBI

cardholdersaffectedbythetragicearthquakeinGujarat.SBIhasassignedtheDelhibased

HCLComNettoprovideitATMtellerinterconnectivitywhichcouldinvolveinvestments

runningintoseveralhundredcrores.SBIchiefgeneralmanagerMadhavMMehta,whois

currentlytheoperationalheadinGujarat,hasbeentransferredtoitscorporateofficein

Mumbaiaschiefgeneralmanager(CGM).

July3AnnouncesthelaunchoftheSBIInternationalcardandtheSBIGlobalCardfor

globaltravelersinIndia.SBIInternationalcardsandSBIGoldCardswouldbeacceptedat

over20millionVisaoutletsworldwideandonelakhoutletsinIndia.

StateBankofIndiahasembarkeduponanambitiousRs800croretechnologyupgradation

programme.ThebankhasappointedKPMG,aconsultantincomputertechnology,toprovide

interconnectivitynetworkingtothecomputerisedbranchesandalsototheATMsacrossthe

countryenablingitscustomerstotransactanykindofbusinessfromanywhere.

2002

Inordertoreduceriskanddevelopatransparentandactivedebtmarketingeneraland

governmentsecuritiesmarketinparticular,theClearingCorporationofIndiaLtd.hasbeen

setupinMumbaiwiththeBankasthechiefpromoter.SBIhasinformedthatthefollowing

changeinDirectors.1.ShriACKalita,DirectorontheBank'sCentralBoardceasedtobea

DirectorontheBoardwefMay13,2002onexpiryofhistermonMay12,2002.2.ShriY

21

RadhakrishnanManagingDirector&GE(CB)hasrelinquishedofficeoftheManaging

DirectorasonJune30,2002andceasedtobeDirectorontheBoardwefJuly01,2002.

StateBankofIndiahasinformedBSEthatMrDCGuptaIASSecretary(FinancialSector),

MinistryofFinance,DepartmentofEconomicAffairs,NewDelhihasbeennominatedas

DirectorontheBoardofStateBankofIndiawitheffectfromJuly17,2002viceMrSK

Purkayastha.

2003

SBIappointsMr.SKBhattacharyaasthenewChiefGeneralManagerforHyderabadcircle

IncreasesitsequitystakeinDiscountandFinanceHouseofIndiaLtd(DFHIL)to51%.

TiesupwithMarutiUdyogLtd.(MUL)forcarfinance.

ReceivespermissionfromInsuranceRegulatoryandDevelopmentAuthority(IRDA)tosell

healthcareproductstoindividuals.

IncreasesitsEquityStakeinDFHILto55.30%

Startsnew'Plusschemes'loanssuchasJusticePlusintendedforthejudgesandcourt

employees,PolicePlusforthepolicepersonnel,TeacherPlusfortheteachingcommunity

andDoctorPlusforthemedicalpractitioners

ReceivesRBIlicencetosetupoffshorebankingunits(OBUs)inspecialeconomiczones

(SEZs)

TheCentralGovernmentafterconsultationwiththeReserveBankofIndia,appointedShri

ChandanBhattacharya,DeputyManagingDirectorStateBankOfIndiaasManagingDirector

StateBankOfIndiafortheperiodfromDecember17,2003toJanuary31,2005.

2004

FormerKCCIPresidentnominatedtoSBIBangaloreLocalBoard.

StateBankOfIndiahasinformedthatReserveBankofIndiahasnominatedShriAV

Sardesai,ExecutiveDirector,ReserveBankofIndiaontheCentralBoardofStateBankof

IndiaviceDr.RakeshMohan.

SBIsetsupATMcounterinErnakulam

BahrainMonetaryAgency(BMA)grantsinprinciplelicencetoStatteBankofIndia(SBI)

SBIsetsupIndia'sfirstdriveinATMinHyderabad

22

StateBankofIndiahasenteredintoanalliancewithHDFCBankforsharingATMnetworks

tobeoperationalisedfromFebruary3,thisyear.

2005

RajTravelsjoinshandswithSBIfortravelloans

SBIopensbranchatVadakara

SBIjoinhandswithApolloHealthtoofferloans

SBIrollsoutnewloanscheme

SBIopensfirstbranchinLakshadweepislandofKavaratti

SBIentersintoagreementforbilateralsharingofATMswithPNBonMay10,2005

SBIsignsMOUwithCorporationBankforATMsharing

StateBankofIndiaand8associatebankshaveenteredintoanagreementwithBharat

PetroleumCorporationLtd(BPCL)forenhancingcardusageatfuelstations

SBIlaunchesnewmortgageloanschemefortraders

SBIlaunchesSBIcardinMadurai

SBIinauguratesRBOinThrissur

SBIsignedamemorandumofunderstandingwithSmallIndustriesDevelopmentBankof

IndiaforcofinancingsmallandmediumenterprisesinAndhraPradesh,TamilNadu,Uttar

Pradesh,Jammu&Kashmir,Jharkhand,DelhiandBihar

StateBankofIndiaandCrisilhavesignedamemorandumofunderstandingunderwhich

latterwillassignratingstosmallscaleindustriesthatareborrowersofSBI

NSICjoinhandswithSBItooffercredittoSSI

2006

SBIteamsupwithNihilenttounveilfeedbacksystem

BhatttobecomeSBI'snewMD

StateBankofIndia(SBI)hasinformedthatShri.YogeshAgarwalhasbeenappointedas

ManagingDirectorontheBoardoftheBankwitheffectfromOctober10,2006totheJune

30,2010

2007

StateBankofIndia(SBI)hasappointedShri.SKBhattacharyaasManagingDirectoronthe

BoardoftheBankwitheffectfromOctober08,2007totheOctober31,2010,asperthe

NotificationdatedOctober08,2007,bytheGovernmentofIndia.

TheStateBankofIndia(SBI)hasbecomethefirstforeignbanktosetupabranchinthe

Israel'sdiamondexchange.Besidesdiamonds,theyalsoseehugepotentialin

23

telecommunications,hitech,chemicals,textiles,agricultureandwatermanagement,food

processing,pharmaandhealthcare.

2008

StateBankofIndia(SBI)hasinformedthattheGovernmentofIndiainpursuanceofclause

(e)ofSection19oftheStateBankofIndiaAct,1955(23of1955)hasnominatedShri.Arun

Ramanathan,Secretary,MinistryofFinance,DepartmentofFinancialServices,NewDelhias

aDirectorontheCentralBoardofStateBankofIndiawitheffectfromJanuary18,2008,

viceShri.VinodRai.StateBankofIndia(SBI)hasinformedthattheCentralGovernment,in

consultationwiththeReserveBankofIndiaandinpursuanceofclause(d)ofSection19of

theStateBankofIndiaAct,1955(23of1955),hasnominatedDr.(Mrs.)VasanthaBharucha

asaparttimenonofficialDirectorontheCentralBoardofStateBankofIndiaforaperiod

ofthreeyearswitheffectfromFebruary25,2008,viceShriPiyushGoel.

StateBankofIndia(SBI)hasinformedthattheCentralGovernment,inconsultationwiththe

ReserveBankofIndiaandinpursuanceofclause(d)ofSection19oftheStateBankofIndia

Act,1955(23of1955),hasnominatedDr.RajivKumarasparttimenonofficialdirectoron

theCentralBoardofDirectorsofStateBankofIndiaforaperiodofthreeyearswitheffect

fromSeptember08,2008oruntilfurtherorders,whicheverisearlier.

2009

StateBankofIndiayesterdayslasheditsbenchmarklendingratebyhalfapercentagepointto

11.75percent.TheBenchmarkPrimeLendingRate(BPLR)wasreviseddownby50basis

pointswitheffectfromJune29,SBIinformedtheBombayStockExchange.Thismove

wouldbenefithome,carandcorporateloancustomers

StateBankofIndiaonJune30launchedtwonewhomeloanproductscalledasSBIEasy

HomeLoanandSBIAdvantageHomeLoan,withzeroprocessingfeesforbothwaivedoff

tillSeptember30.WhileSBIEasyHomeisforloansamountuptoRs30lakhwhiletheSBI

AdvantageHomeisforloansaboveRs30lakh,apressreleaseissuedheresaid.

StateBankofIndia,enteredintoanagreementwiththegovernmentofGujarattocreatea

fundofRs5,000croreforinvestinginequityofinfrastructureprojects.

2010

24

StateBankofIndia,withadebitcardbaseofover70million,comprisingSBICashPlus,

SBIGoldDebitCardandSBIYuvaCard,hasaddedchipandPINbasedPlatinumDebit

CardtoitsbouquetonMarch26.

MrAgarwalisCertifiedAssociateofIndianInstituteofBankersandjoinedStateBankof

IndiaasaProbationaryOfficerin1977.Anexpertincreditandforeignexchange,hehasheld

severalassignmentsrangingfromBranchManagertoRegionalManagerinthePatnaand

Delhicircles.

Healsoservedinthebank'sforeigndepartmentatKolkatahandlinginvestmentoftheFCNB

portfolio,derivativesandcorrespondentrelations.HehasheadedthePuneModuleofthe

bankandhasalsoservedastheDeputyGeneralManagerandBusinessHeadforNetwork1

oftheMumbaiCircle.

StateBankofIndia(SBI)hassignedapactwithUniqueIdentificationAuthorityofIndia

(UIDAI)toworkasaregistrarfortheUIDregistrationofresidents.Ithasbecomethefirst

banktotakeupregistrationworkfortheUIDAIproject.Asaregistrar,SBIwillcapture

throughempanelledenrolmentagencies,thebiometriccharacterssuchasfingerprints,iris

andsoonandsendtheinformationtoUIDAI.

2011

StateBankofIndia,withadebitcardbaseofover70million,comprisingSBICashPlus,

SBIGoldDebitCardandSBIYuvaCard,hasaddedchipandPINbasedPlatinumDebit

CardtoitsbouquetonMarch26.

Witnessedajointventurebetweenthenation'slargestlender,StateBankofIndiaandthe

telecomlead,BhartiAirtelwithanaimtoprovidethebankingservicesamongstthe

unbankedpopulationofthecountry.

SBIAcquisitionofSBICIBank

PChoudharyhasbeenappointedasthenewchairmanofStateBankofIndiaaftergetting

clearancefromthegovernment.

ExperianCreditInformationCompanyofIndiaPrivateLimited,thefirstCICRAlicensed

creditbureauinIndiaonSeptember23,2011saidithassignedamembershipagreementwith

StateBankofIndia(SBI),thelargestconsumerlenderinIndiatocontributedatato

Experian’screditbureauandenhancetheeffectivenessofcompany'srangeofproductsand

services.

2012

25

StateBankofIndiasignedaPreliminaryNonBindingMemorandumofUnderstandingwith

RussianDirectInvestmentFund(RDIF),tofacilitateadvancingbilateraleconomic

cooperationandtradebetweenRussiaandIndiaaimedatexploringinvestmentopportunities

inboththecountries.

India'slargestpublicsectorlender,StateBankofIndia(SBI)hasenteredintoanagreement

withStarAgriWarehousingLtd(StarAgri),India'sleadingagriservices&solutionsprovider,

forWarehousingReceiptFinancingandCollateralManagementServices.

SBI,ICICIBankleadingmbankingrevolutioninIndia.Withtheadventofsmartphonesand

3Gservices,theMobileBanking(mBanking)serviceshavebeenfastcatchingupwith

Indiancustomersforconductingbalanceinquiries,accounttransactions,utilitypayments,and

otherbankingactivitiesusingamobilehandset

India'slargestlenderStateBankofIndia(SBI)hasbeenplanningtocuttheprocessingand

conversionfeeforhomeloanstoleveragetheapproachingfestivalseasonwhenIndians

usuallyspurbuyingasbusinessesofferhealthydiscounts.

2013

India'sleadingPublicSectorlendertheStateBankofIndia(SBI)issteppingupeffortsto

expanditspresenceintheworld'ssecondbiggesteconomywiththelendersettolaunchits

secondbranchinChina.

3.2STRUCTUREOFTHESBI

26

StateBankofIndiaisoneofthemostpopularandreputedbankintheworld.Inthe

bank there were two manager from them one was the Branch Manager and other was

AssistantManager, two cashier who were doing theirwork very nicely, Cash Officer who

waskeepingrecordofthecashthathowmanycashwasusedandhowmuchwasremainall

cash informationkeepingbyhimandalso therewere twohelpers whoweredoinghelp to

managerwhatevermanagerwantedandalsodidotherwork.Whenbankwasopenedbranch

managerandcashofficerweregoneintoStrongRoomandtookcashfromitwhateverneeds

ofthedaydependeduponthedemandofthecustomers.Andalsotheyweredoingentryinto

cashregisterwhichtookcash.Inthebankpremisethereweremanyimportantnoticeboard

andwarningboardonthewallwhichwereindicatedtothecustomersthathowtobehavein

thebankpremise andhow to followbank’s rules and regulation. TherewerealsoCCT.V

Camerawhichwerehelpedtothebankfromthestealofthemoney.

Thereweremanynoticeboardsonthewallwhicharefollowing:

ChequeValidity:

AllcustomersarerequestedtoNote:

TheReserveBankofIndiahasdecidedtoreducethevalidityofchequesfromthepresentsix

monthstothreemonthsfromApril1st,2012.Thisvalidityisapplicableforalltypeofbanks

andallinstrumentslikeCheque,Payorder,DemandDraft,BankersChequesetc.

SupremeCour tDeclaration(LoanPayByGuaranteer )

Ifyouaregivinganyguaranteeforaloanpleasethinkonceagainbeforeyouproceedbecause

incase loanborrowerunable to repay thebank loan thenguaranteerwillbe responsible to

paytheoutstandingamount.

Note: Branch advice in this case according to contract act 130 there is no relief for

guaranteer.

RequiredInformationaboutOpeningofAccount

TwoPassportsizePhotos

27

PANCard

License

Passport

Government/ProtectionIdentityCard

LightBill

TelephoneBill

CreditCard

RationCard

MutilatedNotesareacceptedandExchange

MutilatedNotesareacceptedinthebankforexchangeunderReserveBankofIndia

(NoteRefund)Rules.

Exchangevalue,ifanymustbecollectedonthesameday.

Notesonwhichexchangevalueisnotpayablewillberetainedbybank.

IncaseofanydifficultypleasecontacttothebranchManager.

APPEALTOCUSTOMER

We solicit yoyr cooperation for compliance of Clean Note Policy. Do not staple/ stitch

currency notes. Do not write on currency notes. As we are committed to provide to all

customersClean,Unstaplednotes.

WARNING

BewareofPickPockets.Donotallowyourattentiontobedivertedfromthebusinessyouare

transactingatthecounter.

NOTICE

Public are requested in their own interest as well as bank’s interest to satisfy themselves

before leaving the cash counter that cash received by them is inorder in every respect no

claimwillbeentertainedunderanycircumstancesafterleavingthecashcounter.

All thebank’s transactionsarecomputerizedandmanualpassbookentriesarenot invogue

anymore.AnydiscrepancyinthepassbooksshouldbebroughttothenoticeoftheBranch

Manager.

NOTICEFORLOANCUSTOMER

28

All customers have to information that if they are not pay deposit installment under three

months their loan account will be NPA and also will give them legal notice and after all

sendingtheseallnoticetheynotpayinstallmentbankwillbeseizertheirproperty.So,please

payinstallmentontimeasperbank’srulesandregulation.

TIMINGSFORBANKING

TRANSACTIONSUNDER

NORMALCONDITION

No. NameofActivity Normaltimeforcompletion

1 Recieptofcash 5minute

2 Paymentofcheques 510minutesdependingonamount

3 OeningSB/CD/RDaccount 20minutes

4 Issueofchequebook 10minutes

5 IssueofDD 315dependingoncashteller

6 PaymentofDD 10minute

CurrentBoardofDirectors

Ason14January2013,therearefifteenmembersintheSBIboardofdirectors:[6]

PratipChaudhuri(Chairman)

HemantG.Contractor(ManagingDirector)

DiwakarGupta(ManagingDirector)

A.KrishnaKumar(ManagingDirector)

S.Visvanathan(ManagingDirector)

S.Venkatachalam(Director)

D.Sundaram(Director)

ParthasarathyIyengar(Director)

ThomasMathew(Director)

S.K.Mukherjee(OfficerEmployeeDirector)

RajivKumar(Director)

JyotiBhushanMohapatra(WorkmenEmployeeDirector)

DeepakAmin(Director)

HarichandraBahadurSingh(Director)

D.K.Mittal(Director)

3.3INTERNATIONALPRESENCE

29

As of 31st December 2009, the bank had 151 overseas offices spread over 32

countries.IthasbranchesoftheparentinColombo,Dhaka,Frankfurt,HongKong,Tehran,

Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, New York, Osaka,

SydneyandTokyo. It hasoffshorebankingunits in theBahamas,Bahrain, andSingapore,

andrepresentativeofficesinBhutanandCapeTown.ItalsohasanADBinBoston,USA.

SBI operates several foreign subsidiaries or affiliates. In 1990, it established an

offshorebank:StateBankofIndia(Mauritius).

In 1982, the bank established a subsidiary, StateBank of India (California),which

nowhasninebrancheseightbranchesintheStateofCaliforniaandoneinWashington,D.C.

The9thbranchwasopenedinTustin,Californiaon7thMarch,2011.Theothersevenbranches

inCaliforniaarelocatedinLosAngeles,Artesia,SanJose,CanogaPark,Fresno,SanDiego

andBakersfield.

The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has

sevenbranches,fourintheTorontoareaandthreeinBritishColumbia.

In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo

NigerianMerchant Bank and received permission in 2002 to commence retail banking. It

nowhasfivebranchesinNigeria.

In Nepal, SBI owns 50% of Nepal SBI Bank, which has branches throughout the

country.InMoscow,SBIowns60%ofCommercialBankofIndia,withCanarabankowning

oftherest.InIndonesia,itowns76%ofPTBankIndoMonex.

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

Tianjin.

InKenya,StateBankofIndiaowns76%ofGiroCommercialBank,whichitacquired

forUS$8millioninOctober2005.

Nonbankingsubsidiaries

Apartfromitsfiveassociatebanks,SBIalsohasthefollowingnonbankingsubsidiaries:

SBICapitalMarketsLtd

SBIFundsManagementPvtLtd

SBIFactors&CommercialServicesPvtLtd

SBICards&PaymentsServicesPvt.Ltd.(SBICPSL)

30

SBIDFHILtd

SBILifeInsuranceCompanyLimited

SBIGeneralInsurance

InMarch2001,SBI (with74%of the totalcapital), joinedwithBNPParibas (with

26%of the remaining capital), to form a joint venture life insurance company namedSBI

LifeInsurancecompanyLtd.In2004,SBIDFHI(DiscountandFinanceHouseofIndia)was

foundedwithitsheadquartersinMumbai.

3.4SYMBOLANDSLOGAN

31

ThesymbolofStateBankofIndiaisacircleandnotkeyholeandasmallman

atthecentreofthecircle.Acircledepictsperfectionandcommonmanbeing

thecenterofthebank’sbusiness.

Slogans

o Withyoualltheway

o Purebankingnothingelse

o TheBankertoeveryIndian

o TheNationBankonus

AssociateBanks

StateBankofBikaner&Jaipur

StateBankofHyderabad

StateBankofMysore

StateBankofPatiala

StateBankofTravancore

StateBankofSaurashtramergedwithSBIin200fv8.

StateBankofIndoremergedwithSBIin2010.

Recentawardsandrecognitions

BestOnlineBankingAward,BestCustomerInitiativeAward&BestRisk

ManagementAward(RunnerUp)byIBABankingTechnologyAwards2010

TheBankoftheyear2009,India(wonthesecondyearinarow)byTheBanker

Magazine

BestBank–LargeandMostSociallyResponsibleBankbytheBusinessBank

Awards2009

BestBank2009byBusinessIndia

TheMostTrustedBrand2009byTheEconomicTimes

MostPreferredBank&MostpreferredHomeloanproviderbyCNBC

VisionariesofFinancialInclusionByFINO

32

TechnologyBankoftheYearbyIBABankingTechnologyAwards

SKOCHAward2010forVirtualcorporationCategoryforitsepaymentsolution

TheBrandTrustReport:[12]11thmosttrustedbrandinHindustan.

Majorcompetitor

SomeofthemajorcompetitorsforSBIinthebankingsectorareICICIBank,HDFCBank,

AxisBank,PunjabNationalBankandBankofBaroda.Howeverintermsofaveragemarket

share,SBIisbyfarthelargestplayerinthemarket.

3.5SBIACCOUNT

The SBI has introduced varieties of bank accounts towards customers. The state bank has

three major types of account like SavingAccount, Current Account, RecurringAccount.

SavingsBankAccountforthebenefitsofthecommonmantosavemoneywithSBIandthey

can alsodomoney for their futureplan. A commonmanwhohave nomore salary sohe

couldnotsavemoremoneybutfortheirbetterfuturetheysaveaveryfewmoneyintosaving

account. SBIBank account, CurrentAccount for business people because business people

can earned more money and they can save more money. Because in the current account

33

customers have to deposit money in a certain period. Salary accounts for the various

government employees and also to help the private employees. When employee’s salary

comeittransfertotheirbankaccount.TheSBIhasmovedinintroducingPPFaccounts.The

SBI has also launched other products like government accounts, which can serve for the

governmentdepartmentstomaintainaccountswithSBI.TheDemataccount,corporategroup

accountwhichseeksadvantagesforthecorporatepeople,onlinebankingaccounttooperate

withthehelpofInternet,onlinetradingaccounts,whichhelpsthetradingpeople,Nostroand

Forex trading accounts for international banking purposes. The SBI further added special

products for NRIs staying in India like NRE, NRO. The other type of account by name

ResidentForeignCurrency(RFC)istheotherproductthathasbeenintroducedbytheSBI.

KYC(KnowYourCustomer)

KYC is an acronym for “Know Your Customer”, a term commonly used for Client

IdentificationProcess.SEBIhasprescribedcertainrequirementsrelatingtoKYCnormsfor

Financial Institutions andFinancial Intermediaries includingMutualFunds to ‘Know’ their

clients. This would be in the form of verification of identify and address, providing

information of financial status, occupation and such other demographic information.

ApplicantmustbeKYCcomplaintwhileinvestingwithanySEBIregisteredMutualFund.

TowhomisaKYCapplicable?

Currently, all investors (IndividualorNon Individual)whowish tomakean investmentof

Rs.50,000 or above will be require to be KYC complaint. This would also apply to know

SystematicInvestmentPlan(SIP)transactionsonafter1February2008,ifeachinstallment

ofvaluegreaterthanorequaltoRs.50,000.

JointHolders:Joint Holders (including first, second and third if any, are required) to be

individually KYC complaint before they can investwith any MutualFund.E.g. in case of

threejointholders,allholdersneedstobeKYCcomplaintandcopiesofeachholder’sKYC

Acknowledgement must be attached to be investment application from with any Mutual

Fund.

Minors:IncaseofinvestmentsinrespectofaMinor,theguardianshouldbeKYCcomplaint

andattachtheirKYCAcknowledgementwhileinvestingthenameoftheminor.Theminor,

upon attaining majority, should immediately apply for KYC compliance in his orher own

capacity.

SBISavingsAccount

In savings Bank account, customers can made deposits, which are liquefied, safe and gets

rateof interestasperbank’s rules.SavingAccountopen for thecommonman. This is to

34

facilitatethecustomerstosavemoney,whichcanbeutilizedatlatertime,whenthemoneyis

needed very badly. When customer needs money very urgently they can withdraw their

money from the bank account very easily. That’s why customer should have to save their

moneybecauseitisusedtothemwhentheyhavenoothersourcesandnocashinhand.And

alsostudentscouldopentheiraccountinthebankfortheirscholarshippurpose.

SBICurrentAccount

This account is to help the customers to have both ATM and Debit Card facility. The

customerswillbeprovidedwithachequebookcontainingaminimumof25leavestodraw

money,whenrequired.Nochargesareapplicable.Currentaccount ismostbenefitedfor a

business man because business man could more money from their business. So for them

currentaccountisthebestoptiontosavemoney.

SBINoFrillsAccount

ThecustomerswhoarenotabletoprovideminimumrequirementofSBItheconvenience

providedforthemistomaintainaminimumbalanceintheiraccountandnoservicecharges

areapplicable.

SBISalaryAccount

The SBI has made ease for the employees to draw the salary amount through the SBI

Account, where the salary amounts will be transferred from the employees accounts. The

facilityreducedtheburdenofdisbursementattheemployer’splace.

SBINRIAccounts

This typeof account is intentionally launched for the sakeofNRIs.Under this accounting

type,NRErupeeaccounts,NROaccounts,FCNR,savingsbankandcurrentaccountscanbe

opened from NRIs to make money transactions whenever needed by them. Fixed deposit

accountsarealsoprovidedforNRIs.

InternationalBankingAccounts

The SBI has launched a few accounts type to provide solutions for international banking

services,whichincludeNostroandForextradingaccountsandotherlatestproducts.

CorporateAccountsGroup

35

The‘CorporateAccountsGroup’hasbeenintroducedbySBItomakeconvenienceforthe

corporatepeopletooperateaccountswithSBIbranches.

OnlineTradingAccounts

ThisproductistocooperatewiththecustomerswhohavebeenregisteredfromtheSBIand

aftergettingtheregistrationbySBI,thepersonwillgetonlinetradingaccounts.

SBIInternetBankingAccount

ThisnetbankingfacilityhasbeengeneratedbySBItohandleallSBIaccountsthroughonline

byusingInternetServices.Thiswillcertainlyreducesthecustomer’sprecioustime.

SBIPPFAccount

The PPF is a scheme, which was launched by the central government to invest under this

scheme in central government’s funds accounts and earn applicablebenefits at the time of

retirementorevenbeforebysurrendering thePPFaccountbyaaccountholder.Under this

theaccountholderwillgetincometaxrebate.

AccountBusinessCurrent

SBI provides current account facility customized for businessman with the convenience of

easyfundtransfer,clearingallbillsquicklyandquickcelebrateforoutstationCheque.

SBIAccountOpening

TherangeofproductsthathavebeenlaunchedDematAccount:

ThroughthistypeofDematAccountwhichhasbeenintroducedbySBI,toconvenience

forsharingtrading,investmentinmutualfundsandalsohelpsforotherequityanddebenture

derivativesandpresentation.

GovernmentAccounts:

AstheSBI isworkingunder the instructionsof theRBI,which represents thecentral

government and also working as a coagency for the transactions of internal branches of

centralgovernmentofIndia.Alltransactionsrelatedtogovernmententerprisearemaintained

separatelyundertheproceduralfunctionsofSBI.

BySBIhashelpeddifferentcustomerstotransactwellandexpandedthebasementofthe

SBIasoneofthebiggestbankinIndia.

36

NominimumbalancerequiredforSBIsavingsaccounts

TheStateBankofIndiahasaskeditsbranchestoremovetheminimumbalancestipulation

andrefundchargesthatwerecollectedforfailuretomaintainthesame.

ThecircularissuedonApril25saidthebankhasdecidedtowaivetherequirementof

maintenanceofminimumbalanceforalltypesofsavingsbankaccountswithimmediate

effect.

Accordingly,nominimumbalancechargeswouldbeleviedeveryquarterhenceforth,the

circularaddressedtochiefgeneralmanagersofallSBIcirclessaid.

Brancheswereadvisedtouseapprovedpublicitymaterialtotheeffectandtohavethem

displayedprominentlyonbranchpremises.Inaprecedingcircularsentonlythedaybefore,

thebankorderedrefundofchargesfornonmaintenanceofminimumbalance‘ofpersonal

segment'customers.

Thiswasaimedatsettingrightanearlierorderthatsoughttoapplychargesfornon

maintenanceofminimumbalancesonalleligibleaccountsforthequarterendedMarch31

SBIMUTUALFUNDS

SBIMutualFundisIndia’slargestbanksponsoredmutualfundwithaninvestorbase

ofover3million.SBIMutualFundisajointventurebetweentheStateBankofIndia,India’s

largestbankingenterpriseandoftheworld’sleadingfundmanagementSocieteGeneralAsset

ManagementofFrance,onecompany.

SinceitsinceptionSBIMutualFundhaslaunchedthirtytwoschemesandsuccessfully

redeemed fifteen of them. SBI Mutual Fund schemes have consistently outperformed

benchmarkindices.SBIMutualisthefirstbanksponsoredfundtolaunchandoffshorefund

ResurgentIndiaOpportunitiesFund.

Presently,SBIMutualFundmanagesoverRs.17000croresofassets.Thefundhasa

networkof100collectionbranches,26investorservicecenters,28investorservicedesksand

40districtorganizers.

37

CONVENIENCEBANKING

“QUICK,EASYANDALWAYSAVAILABLE”

Intoday’sdayandagetimeismoney.Youworkhardandhaveabusyschedule.

Doingbankingshouldbeeasyandconvenientandnotaddtoworries.

StatebankofIndiarealizethisandhavespeciallytailoredawiderangeofvalueadded

productandservicestomakemoneyworkforyou.Thiscoupledwiththehigheststandardof

customercarewillmakelifesimpleandeasier.

MultipleBankingChannels:

Todaythetechnologydrivenbanksarefindingvariousmeanstoreducecostsandreachoutto

as many customers as possible spread over diverse area. This has led to using multiple

channelsofdeliveryoftheirproducts.

ATM(AutomaticTellerMachine)

TheATMserviceisavailableinthestatebankofindiawhichisveryimportant

forthemandtheircustomersbecauseATMsavetimeofthecustomersnadalsoofthecashier

of thebank.Theycanbeuserofa savingaccount, acurrentaccount,pensionaccountand

NRIaccount.TheaccountholderwillgetanATMcardfromthebankalongwithotheritems

atthetimeofaccountopening.Thereis4digitpinnumber(PersonalIdentificationNumber)

thatwillalsobemailedtocustomerfromthebank.Thisisahighlyclassifiedinformationthat

38

you will maintain secretly and not allowothers to know. For security reason you canalso

changeyourpinperiodically.EverytimeyouaccessyouraccountwiththeATMcardthisis

thenumberthatwillworklikeyourpassword.Thusitssecurityismostimportant.Customer

willbemailed thisnumber separately ina securedmanner from thebankfor the first time

afteropeningtheiraccount.Incaseofthelossofthesamecustomermustinformtothebank

immediately so that customers are allotted and alternative number from the bank at the

earliest.Thereareseveralmodernsinnovationsofbankingthathavecateredtoallaspectsof

transactions and urgent need for money. This is an age when technology and innovations

havebroughtabouteasyaccessofcustomer’sowncashwheneverandwherevertheyneedit.

Oneofthemostinnovativefeaturesofmodernbankingistheavailabilityofanytimeand

anywhere money that you need. There are various emergency situations when urgent

monetary requirements are common. This has now become easier with modern banks

establishing their ATM or Any Time Money machines almost in every neighborhood and

region.

ThepopularityofallthepresentsbanksinIndiaisduetopresenceoftheirATMmachine

availability.Andamong them theStateBankof India is a frontrunner.SBIhasoneof the

largestnetworksofATMmachinesthatarelocatednotonlyineveryneighborhoodofcities

andtownsinthecountry.Therearealsofoundevenintheremoteandinteriorvillagesofthe

country.Ithasusheredtheconceptsofmodernbankingamongallsegmentsofthepopulation

even to those who are usually inhabited far away from cities. It has played a key role to

introducingmoderntechnologytothepeopleofthecountryandmadelifeeasierforthem.In

theATMserviceacustomercandrawtheirmoneyfromotherbank’sATMonlyfivetimes

afterthatbanktakechargesfromthecustomerRs.20andthischargecutfromtheiraccount.

AndalsoobservedaboutATMthatineveryATMmachinehasdifferentcapacityofkeeping

cashbecauseofitscontainersize.WhenIdidtrainingtherewasalsooneATMmachineand

in thatmachinecustomercandrawamountup toRs.40,000perday itwas the limitof the

amountwithdraw.ATMmachineisaveryspeedytechnologywhichissavecustomer’stime

aswellastimeofthecashierofthebank.AndIalsolearnedthatwhenATMmachinewas

notworkingthebranchmanagercalledATMengineersandtheyrepairedATMmachineand

alsotheyhavetodidentryintoATMregister.Thus,ATMmachineisaveryuniquemachine

whichhelpstocustomertodrawtheirmoneyfromtheirbankaccountveryeasily.

NETBANKING

NetbankingmeanscarryingoutbankingtransactionviatheInternet.Thustheneed

for a bank is most required. Also this helps in serving the customer better and tailoring

product better suited for the customer. The branch manager also explained me about net

bankingthatthisbankinghelpustodotransactionsviainternet.Whenmanagerhavetodid

transactionswithotherbanktheyusedinternetbankingfortheirpurpose.

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A customer can view his account details, transactions history, order drafts,

electronicallymakepayments, transfer funds, checkhis accountposition andelectronically

communicatewiththebank throughtheinternetforwhichhemayhavewantedtovisit the

bankbranch.Netbankingisaverygoodservicebecausewhencustomershavetoknowabout

theiraccount information theyhave tonogointobankforcheckthe informationabout the

theiraccountbuttheycaneasilydochecktheiraccountbalancewiththehelpofnetbanking.

Also theycan save their time becauseof net banking service.Transaction cost would also

reducejustbecauseofnetbanking.Sothestatebankofindiaprovidegoodservicestotheir

customersanddohelpwhenevertheyrequired.Netbankingisveryusefulforbothbankas

wellascustomers.

Netbankinghelpsabankspreaditsreachtotheentireworldandspreaditsreputation

intheworld.

MOBILEBANKING

MobileBanking(alsoknownasMBanking,mBanking,SMSBanking) isa termed

usedforperformingbalanceschecks,accounttransactions,payments,creditapplicationsand

otherbankingtransactionsthroughamobiledevicesuchasamobilephoneorPersonalDigit

Assistant(PDA).

MobileBankingreferstoprovisionofbankingandfinancialserviceswiththehelpof

mobile telecommunication devices. The scope of offered services may include facilities to

conductbankandstockmarkettransactions,toadministeraccountsandtoaccesscustomized

information.

SMSBANKING

SMS Banking is a service that allows customers to access their account information via

mobilephone.SMSBankingservicesareoperatedusingbothpushandpullmessages.Push

messagesarethosethatthebankchoosetosendouttoacustomer’smobilephone,without

the customer initiating a request for the information. Push messages are those that are

initiated by the customer, using a mobilephone for obtaining information or performing a

transactioninthebankaccount.SMSBankingisagoodservicewhichisprovidebythestate

bankifindiatotheircustomersfortheirsakeof.Whencustomeropenedtheirbankaccount

theyhavetogavetheirmobilenumberiscompulsorybecausewhenanyproblemoccursin

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thetransactiontheycouldmessagetothecustomersandtheycomeandsolvedtheirproblem

easily.SMSBankingisagoodservicetoinformtothecustomerwhichisverybenefitedfor

thecustomeraswellasbank.

3.6OTHERSERVICES

CREDITCARD

CreditCard(Visa)BillPayisaspecialservicethatallowscustomerstotransfermoney

onlinefromtheirSBIaccounttoanyVISADebitorCreditCardissuedinIndia.

CreditCard(Visa)BillPayissoquick,simpleandaconvenientalternativetoDemand

Drafts,Chequesorpayorders.

Inthebankmanycustomersweregottheircreditcardfromthebankandalsomembers

of the state bank of india were very cooperative to provide credit card service to their

customersandcustomerswerealsoveryhappytogotthisservicefromstatebankofindia.

Andwhencustomerspurchasedanyproductorthingfromshoppingcentre,getbooksonline

frominternet,bookingofairticket,etc.theyusedcreditcardfortheirpayment.IntheCredit

Cardservicecustomercanusedonlywhichmoney that is in theirbankaccount theycould

notusedmoremoneyiftheiraccountempty.CreditCardisaverygood,quick,simpleand

easiestservicebecausewhencustomerpurchasedanythingfromtheshoporanywherethey

couldpaytheirmoneywiththehelpofCreditCard.CreditCardisagoodforthecustomer

andalsofor thebankbecause it issave timeof thecustomerandbankandalsoreduce the

transactioncost.

LOCKERSERVICES

Locker isavery importantpart of thebankbecause in the locker room jewellery,

documentsof thepropertyandalsoother important thingswhichwereputbycustomers in

the locker room to save fromstealby anyone.Whencustomerkeep locker for their safety

gave them locker number and lockerkey. When customers were came in the bank to take

theirjewelleryfromthebankorthedocumentstheyhavetodidentryintolockerregisterthat

whentheywerecamewhatwasthetime,whichwasthedateandtheirlockernumberbecause

of their safety and alsodid signature of them to confirm that a personwhocame to took

documentsandotherthingsheorsherealpersonornotthatwhohadputtheirjewelleryand

documentsbecauseit isveryimportantfor thecustomeraswellasbank.Storingtoomuch

Jewelleryandvaluablesinthehouseattimesbecomesasecurityissueandanobstacleincase

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ofnaturalcalamities.Incaseoflossofkeyofthelockers,aservicechargeofRs.500/hasto

berecoveredfromhire inaddition to theactualexpenditure incurredforbreakingopen the

lockerandchangingthelockbymanufacturersoflockers.

SBIoffers,asafe,trustworthyspacetostorevaluables,jewellery,documentsandother

things.

DEMANDDRAFT

SBIenablescustomerstoissuedemanddraftonline.Customerhastheoptiontocollect

thedraftfrombranchorgivehismandatetodispatchthedraftbycouriertothebeneficiary.

Thereisverygoodfacilitytoprovidedemanddrafttotheircustomersbecausecustomerscan

getdemanddraftthroughonlineaswellaspersonally.

LOANSERVICES:

InthestatebankofindiathereisaverygoodloanschemeofferedbytheStateBank

of India are extremely popular among the Indian citizens due to the higher facilities and

featuresassociatedwiththem.TheSBIisconsideredtobethemostlargestgovernmentbank

the country has. The bank has also a large number of customers who are from different

cornersofthecountry.Thereareseveralloanfacilitiesandschemesavailablefromthehouse

ofSBIwhicharepreparedkeepinginmindtheneedandrequirementsofdifferentcustomers

and people of the country. State bank of india very carrying about their customers bank’s

manageralwaysalertabouthisduty toprovidemoreandmoreservices to theircustomers.

Thereisamanyloanschemeprovidebythestatebankofindia.

HomeLoan

AgricultureGoldLoan

CarLoan

EducationLoan

ComputerLoan

SakhiMandalLoan

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HomeLoan

HomeLoanwasprovidedbythestatebankofindiawhichwasstudied.Statebankofindia

providehomeloantillRs.25lakhbecausetherewasalimitoftheamount.Onthehousing

loaninterestwas9.95%.Customerhavetopaytheirinstallmentinsuchafixedperiodthey

havetopayEMIofthehomeloanandiftheyarenotcapabletopaythisinstallmentsobank

havetotakedecisionandbankseizedtheirwealthwhichwasputasasecurity.Homeloan

wasprovidedbytheAssistantManagerinthebankeveryloancustomercametohimforto

take home loan and also other many loans. Every loans were provided by the Assistant

Managerbecausehewastheonlydidworkoftheloan.

AgricultureGoldLoan

AgricultureGoldLoanwhichwasgiventothefarmersfortheiragriculturepurposes.Inthe

AgricultureGoldLoan therewerealso three loanwereprovided to thefarmers likeKissan

CreditCard,TractorLoanandGoldLoan.

1. KISSANCREDITCARD(KCC)

IntheKissanCreditCardbankprovideloanuptoRs.300000andinterestrateontheloan

amountwasthe7%.Bankprovidedadvanced11.70%butgovernmentprovided7%.Sothe

differencebetween themwas the4.70%was took from thegovernment.Andwhowasdid

repaymentthisloanamountunder12monththeycouldgotbenefitfromthegovernment.

2. TRACTORLOAN

Upto40HorsePowerhelpofRs.45000

Upto40to60HorsePowerhelpofRs.60000

In theTractorLoanbankwasprovide loanamountdependon the tractor’shorsepower if

horsepowermoreloanamountwouldbebigandhorsepowerlessamountwouldbesmall.

Tractorismostimportantfortheframertodofarmingwithoutittheycouldnotdofarming

that’swhystatebankofindiaprovideTractorLoananddidhelptothefarmers.Sothefarmer

dofarmingveryeasilywiththehelpofthisloan.

3. GOLDLAON

In theGoldLoanbankprovided loan to the farmers to their farmingpurposeandandalso

they put their ornaments and got loan from the bank and on this loan amount bank took

interest 7%. And also other loan provided other than farmers in this loan except farmer

normalpersonalsocouldput theirornamentsandgot loanfromthebankandon thos loan

amountinterestratewas13.95%

4. CATTLELOAN

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Inthisloanschemebankprovidedloandependonthebreedoftheanimalwhencustomergot

loan for the cow bank provided loan amount Rs.20000 per Cow and for the Buffalo bank

provided loanamountRs.25000.So this loanamountalsodependeduponthebreedof the

animal.ForthecattleshedNABARDprovide25%subsidytothefarmers.

CARLAON

CarLoanwasprovidedbythestatebankofindiatotheircustomer.Customerhavetogave

KYC to the bank for their loan purposes whatever bank required and bank manager did

processof theCarLoanand Ihavealso seen thatbankmanagermadesignature from the

customer.EMIoftheCarLoanwasRs.1683perlakh,repaymentoftheinstallmentwasthe

upto7years,carloanwaspricewasthe85%financed,85%onroadpriceincludingR.T.O,

insurance and rod tax,quick appealof loan, no penalty, free accident insurance, repayment

timeperiodwasmaximum7yearsmeans84installmentoftheloan.

EDUCATIONLOAN

TheaimoftheEducationLoantoprovideservicestothestudentswhoareveryintelligentin

thestudybuttheycouldnotdidstudyduetotheirfinancialconditionso,statebankofindia

provided loan thosestudentswhoarevery intelligentandwhowanted todidstudyfurther.

Onthis loanamountinterestratewas11.50%andthisloanamountreturntothebankafter

studentsdojob.

COMPUTERLOAN

In the Computer Loan bank provided loan for to purchase computer. Computer is very

important today so students have to knowledge about it and some students have no

knowledgeaboutitbecausetheyhavenocomputerduetotheirfinancialconditiontheycould

notaffordsofor theirstudypurposestudentsgotComputerLoanfromthebank.Computer

Loanisalsoaverygoodforthepeopletosuccesstheirdream.

SAKHIMANDALLOAN

SakhiMandalLoanwhichwasprovidedbythestatebankofindiathosewomenswhowere

not capable to did something whatever they want lack of money. So, this Sakhi Mandal

schemeprovidedtothembythestatebankofindia.Statebankofindiaisonlybankwhich

providedthistypeofloanandhelpthemtofulfilltheirdreamsbecausemanywomenshave

not their husband so theyhave no income so the state bank of india gave them loanas a

amount Rs.100000 and bank interest rate on this loan is 12.25% and also government

provided 5% subsidy to them. In this loan scheme womens have to save their money

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whatever theysaveanddeposit it to theirpresidentof themandalandwithoutpresidentof

thisloanbankdidnotprovidedloan.Whenanywomendemandedfortheloanpresidentof

thisloanschemehavetodidprocesswithSBIandtheirsignaturewerealsoimportant.There

were many Sakhi Mandal like Om Sai Sakhi Mandal, Jay Matadi Sakhi Mandal, Jay

KhodiyarMaaSakhiMandalandsoon.

FARMERSCLUBSCHEME

This scheme knownas NABARD Scheme. This schemeprovidedby theNABARD to the

customers of thebank.Theygave loanamount Rs.10,000per annumup to3years.When

farmers want money for their farming state bank of india provided with the help of

NABARD.Thisschemewasalsogoodforthefarmers.

CROPLOAN

CropLoangiventothecustomersbythestatebankofindia.Inthisloanschemestatebank

ofindiaprovidedloantowhomthosewhowerewantedtotookthecrop.Statebankofindia

givenloanamounttothecustomerRs.3,00,000annualy.

MICROANDMAJORIRRIGATIONSCHEME

In this two loan scheme Micro Irrigation Scheme was the popular because in this scheme

wastageofthewaternotmore.ItwascalledasaSprinklerSchemeandthisschemeadopted

bymanyfarmersbecauseitwasnotmorecostlycommonfarmeralsoadoptedthisscheme.

Major Irrigation Scheme was also as popular as Micro Irrigation Scheme. In this scheme

farmersdidfarmingthroughwell,boringandcanal.Alsointhisschemenotwastageofmore

water that’s why farmers were adopted this scheme everywhere this scheme was famous

becausewhererainfallwasnotmorethisschemewasmostimportantforfarming.

GREEN/NETHOUSESCHEME

InthisschemeNBARDgaveloan5%subsidyandalsostategovernmentgaveloandepended

upontheprojectcost.Thisschemealsomorebenefitedforthefarmerstodidfarming.

HORTICULTURECROP

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Inthisschemestatebankofindiaprovidedloantothemwhoweredidexportofthefruitslike

MangobecauseontheGujaratmangoismostfamous.Soforittheyprovidedloan.

PersonalLoan

State Bank of India Personal Loan rates are competitive in market but not lowest as per

popularbelief.BeforetakinganyloanscomparePersonalLoanRatesofallbanksandthen

takeadecision.

Advantage:

•LowPersonalLoanInterestRates.Further,chargeinterestonadailyreducingbalance.

•Minimumprocessingcharges;only1%2%ofloanamount.

•Nohiddencostsoradministrativecharges.

•Nosecurityrequiredwhichmeansminimaldocumentationsomethingthatyouhadalways

wanted.

•Noprepaymentpenalties.Reducecustomer’sinterestburdenandoptimallyutilizeyour

surplusfundsbyprepayingtheloan(1%oftheloanamountwillbechargedifyourepaythe

loanbefore6months)

•Longrepaymentperiodofupto48months.

LoanAgainstProperty

TheeligibilityofLoanagainstPropertyiscalculatedonthebasisofeitherthepercentageof

property value that you own and howmuch incomeyouhave that you can return the emi

with.So you can get Loan against property upto annex % of property value and the net

amountthatyouearnafterotheremiapercentageofthatamountcangointotheemi.

LoanagainstProper tyisgivenonbelowmentionedproper tiesandthe%that

customercangetloanislistedbelow.

ResidentialProper ty:

SelfOccupied–65%

Vacant55%

Rented55%

CommercialProper ty:

SelfOccupied–50%

Vacant40%

Rented40%

AdvantagesoftakingaLoanAgainstProperty

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CheaperthanPersonalLoans:Itworksouttobemuchcheaperthanapersonalloans,

whichisusuallyissuedatinterestratesintheregionof16percent21percent.

LongerLoanTenure:ThetenureforaLoanAgainstPropertyisusuallylongerthan

thatforapersonalloan.Generally,LAPisgivenforamaximumtenureof10years.

SimpledocumentationandFastApprovals:LAPbeingasecuredLoanhas

comparativelyfasterapprovalsandminimaldocumentation.

LoanAgainstPropertycanbetakenforfollowingpurposes:

•Expandingyourbusiness

•Getyourchildmarried

•Sendyourchildforhigherstudies

•Fundyourdreamvacation

•FundMedicalTreatments

3.7INSURANCESERVICESOFSBI

SBILifeInsuranceisajointventurebetweenStateBankofIndiaandBNPParibas

AssuranceofFrance.Itisthefirstprivatelifeinsurancecompanytomakeprofitforthree

consecutiveyears,andtoreceiveAAAratingfromCRISILsignifyinghighestfinancial

strength.In2007surveyconductedbyACNielsenORGMARGandEconomictimes,ithas

beenvotedasthemosttrustedprivatelifeinsurancebrand..SBIowns74%ofthetotal

capital.SBILifeInsurancehasanauthorizedcapitalofRs.2,000croresandapaidupcapital

ofRs1,000crores.

ThevariousinsuranceplansofferedbySBILifeInsuranceareasfollows:

SBILifeMoneyBackPlan

SBILifeUnitPlusSuper

SBILifeProtectionPlans

SBILifePensionPlans

SBILifeSavingPlans

SBILifeHealthPlans

SBILifeGroupPlans

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Vision:

"Tobethemosttrustedandpreferredlifeinsuranceprovider"

Mission:

"Toemergeastheleadingcompanyofferingacomprehensiverangeoflifeinsuranceand

pensionproductsatcompetitiveprices,ensuringhighstandardsofcustomersatisfactionand

worldclassoperatingefficiency,andbecomeamodellifeinsurancecompanyinIndiainthe

postliberalizationperiod".

Values:

•Trustworthiness

•Ambition

•Innovation

•Dynamism

•Excellence

3.8HISTORYOFTHESBILIFEINSURANCECOMPANY

SmartUlipPlan

SBILifeInsuranceCompany,thesubsidiaryofcountry’slargestpublicsectorbankhas

launchmanyinnovativelifeinsuranceproduct,andoneofthemisSBI’sSmartUlipPlan.

SmartUlipPlannotonlygivesyouguaranteednetassetvalue(NAV)inthefirstsevenyears

oratmaturity,butalsogivesyouadvantageofparticipatinginthemarketupside.Ifthereisa

suddendeathofthepolicyholderduringthepolicyterm,thenomineereceivesthesum

assured.

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Theplanalsogivesflexibilityofashorttermpremium,thatallowcustomerstopaypremium

forlimitedperiodofeither3or5yearsandavailtaxbenefitsundersection80Cand10(10

D)oftheIncomeTaxAct.

ThesecurityoftheguaranteedNAVwithacomparativelyshorterpremiumpayingtermwill

helpthecustomeronceagaintoinvestwithconfidence.

TheintroductionofSmartUlipisademonstrationofSBILife’scommitmenttoacustomer

centricapproach,byofferinglifeinsurancesolutionsappropriatetothetimes,SBILife

Insurancemanagingdirector&CEOUSRoysaid.

SBILife’sSmartUlipworkswithFlexiProtectFundandMoneyMarketFund.

MoneyBackPolicy

Everybodyexperiencesomesoimportantmomentsinlifethataretrulylimited.Thesespecial

momentcouldbeyourwedding,firstchild’sbirth,educationorpurchasinganewhome.

Somerespectivemomentsareevennamedasresponsibility.Forthesekindofoccasionone

hastobefinanciallyprepaid.

Whatyouwantiseasyliquidityateverysteptobeinortaketo.AndLifeInsuranceisan

optionthatcanhelpyouout.

SBILifeInsurancebringstoyouMoneyBackPolicywhichisasavingplanwithadded

benefitsoflifecoverandcashinflowatregularintervals.Thisplanisspeciallycustomizefor

individualswhoareseriousaboutsavingsforfutureexpenseatanytimeinlife.

MahaAnandPlan

SBI Life Introduced “ Maha Anand Policy” – a simple & versatile unit linked nob

participatinglifeinsuranceplan,whichgivesyouinsurancecoverwithoutanymedicalcheck

up.Allyouhavetodoisjustanswersomefewhealthrelatedquestions&thereisit.

Theproducthasbeenespeciallydesigned toprovide to investmentandprotectionneedsof

themiddleandlowincomepeople,speciallythoseresidinginsemiurbanandrulesareas.

Features

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1. DoubleadvantageofMarketlinkedreturnsandinsurancecover.

2. EasyApplyProcessNomedicaltestisnecessary.

3. AvailableatanaffordablepremiumstartingfromRs.500permonth.

4. 3fundoptiontochoosefrom.

5. Flexibilitytoincreaseyourinvestments.

6. Liquiditythroughpartialwithdrawl’s.

7. AttractiveTaxbenefitsundertheIncomeTaxAct,1961.

SBILIFEINSURANCEINDIA

StateBankofIndiaisoneofthelargestbankingdealershipinIndia,includingitsseven

associatebanks.Networkofover14,500branchesacrossthecountry.SBILifeoffersaslew

ofproductsdesignedforeachandeveryoneofthesociety.

Followingthelistoftheproducts:

Pension

1. Keepyourincomestableinpostworklife.

2. Helpspolicyholdertoremainfinanciallyindependentpostretirement.

3. Toolforsystematicretirementplanning.

ChildrenPlan

1. Anassettoplanforchildren’sneedsinthefuture.

2. Anassettoensurechildren’sfutureplansarenotcompromisedinparentalabsence.

3.

ULIPInsurance

1. Investmentoptionadded.

2. Optiontochoosefromfundssuchasequity,ddebt,bonds,oracombination.

3. Offerpartialwithdrawlsoptions.

MoneyBackInsurance

1. Lifecoversforspecifiedperiods.

2. Policyholdergetstaxfree,fixedproportionsofthesumassuredatregularintervals.

3. Policyholderreceivelumpsumpaymentonsurvivingmaturitydate.

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TermInsurance

1. Pureriskwithcoverplannosurvivalbenefit.

2. Cheapestofalllifeinsuranceproduct.

EndowmentInsurance

1. Toolwithsavingoption.

2. Sum assured plus bonus accured paid in the event of death of the insured or at

maturity.

3. Withprofitplanthatparticipatesintheprofitsofinsurer’slifeinsurancebusiness.

SBILIFESHIELD

SBILifeShieldisoneofthebetterterminsuranceplanavailableinthemarket.Ithaslowest

premiumoptionsthanotherinsuranceplansandalsooffersattractivediscountsonpremium.

Theplanisavailableinthreeoptions:

i. Sumassuredincreases5%perannum.

ii. Sumassuredincreases50%perannum.

iii. Levelcover.

Benefits:

1. DeathBenefit:

In case of unfortunate death of the life assured during the term of the policy, the

nomineewillreceivethesumassured.

2. MaturityBenefit:

Nosurvivalbenefitispayableattheendofthepolicyterm.

3. TaxBenefit:

Taxbenefitundersection80Cand10(10D)oftheIncomeTaxAct,1961.

4. RiderPlans:

Thefollowingriderplansareavailableforadditionalbenefit.

AccidentalDeathandPermanentDisabilityRider

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PremierWaiverBenefitRider.

CARINSURANCE

Carinsuranceisamandatoryinindiaasperlegallaws.Thus,itisrequiredtobepurchased

foranewcarandithastoberenewedeveryyearforanoldcar.Anindividualcanbuynew

car insurance online through preferred provider website and insurance aggregators. It has

emergedas themostconvenientmodeofbuyinginsurancesince itcanbeboughtwith just

fewclicks.Thecoverageoftheonlinepolicyremainssameascomparetoofflinemediumbut

onlinepoliciesaremuchmoreeconomical.Further,theturnaroundtimeforanonlinepolicy

issueisveryless.

TypesofCarInsurance:

Car insurance as different variants and private car and commercial vehicle insurance also

falls under this category.Car insurance coveragemustbe evaluated for eachpolicybefore

eventuallybuyingit.Belowarethetypesofcarinsuranceavailableinthemarket:

a. Pr ivateCarInsurance

Mostofusepossessacarandareprone toaccidents. Inorder tocover this risk,an

individualcangetthiscoveredbybuyingprivatecarinsurance.Itprovidescoverage

thatcoversownliability,thirdpartyliabilityincludingthirdpartypropertydamages.

These days, insurance providers provide cashless settlementswhich have increased

customersatisfaction.

b. TwoWheelerInsurance

Two Wheeler insurance covers only two wheelers i.e. scooters and bikes. An

individual is indemnifiedby the insurancecompany in case insuredmeetswithany

kindofaccident.

c. CommercialVehicleInsurance

Commercialvehiclesaremostpronetoaccidentsanduncertaintiesastheyspendmost

oftheirtimeonroads.Commercialvehicleinsurancepolicyprovidesriskcoverageof

individual’sownliabilityandthirdpartydamageswhichiscompulsory.

d. CarInsuranceRenewal

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It is very important for an individual to renew their vehicle insurance upon expiry.

Carinsurancerenewalcanbedoneonlinewiththehelpofinsuranceaggregators.You

can also compare car insurance quotes offered in themarket with the help ofthese

insuranceaggregatorsastheyprovideseveralcomparisontoolswhichhelpyoutobuy

bestcarinsuranceavailable.

e. ThirdPar tyCarinsurance

This cover is an essential part of car insurance policy as it helps an individual by

providingcoveragainstlegalliabilityarisingduetoaccident.Anaccidentcanleadto

death, permanentdisability andevendamage to thirdpartyproperty.Legal liability

canariseandcostyouhugely.Thus,thirdpartydamagecovercanplayitimportance

duringanycontingency.

f. InsuranceforBusiness

Lifeisfullofsurprises.Somearepleasantandsomearenot.WithSBIGeneral

Insuranceyoucanadequatelyputinplaceriskmitigationmeasurestoovercomethese

misfortunes.TheFireInsurancePolicyisdesignedforcoveringlossordamage

causedtovariousassets/propertiesduetofireandotherhazards.MarineCargo

InsurancePolicysafeguardsyoufromrisksassociatedwithtransitofgoodstroughthe

waterways.PackagedInsurancepoliciesofferyouprotectionagainstpotentialrisk

associatedwithmediumandlargesizedbusinessenterprises.Otherpolicieswhichfall

underthiscategoryincludeconstruction/engineeringpolicies,motorinsurancesand

othermiscellaneousinsurances.

KEYMILESTONES

FinancialYear1112:

AwardedthemostcovetedNDTVProfitBusinessLeadershipAward,twiceinarow,

2010&2011.

Awarded‘MostTrustedLifeInsuranceBrandII ByTheEconomicTimes,Brand

EquityandNielsen,MostTrustedBrands2011.

53

GloballytoppedtheprestigiousMillionDollarRoundTable(MDRT)forhavingthe

maximumnumberofMDRTmembers,forthreeyearsconsecutively.

CRISILreaffirmeditsAAA/StableratingtoSBILife, indicatinghighestfinancial

strengthtomeetpolicyholderobligations.

.

ICRA reaffirmed its iAAA rating indicatinghighest claimspaying ability and a

fundamentallystrongposition.

Wononeofthemostprestigiousqualitydistinction,IMCRamkrishnaBajajNational

QualityAwards2011"CertificateofMerit"

AwardedSilverShieldbyICAIforExcellenceinFinancialReportingforFY2010–

11undertheInsurancecategory.

Won ’Best Presented Accounts Award‘ by The South Asian Federation of

Accountants(SAFA),intheInsuranceCategoryfortheAnnualReportFY200910.

FinancialYear1011:

SBILifewonthecovetedBloombergUTVFinancialLeadershipAward2011"Life

Insureroftheyear".

WonthemostcovetedNDTVProfitBusinessLeadershipAward2010.

GloballytoppedtheprestigiousMillionDollarRoundTable(MDRT)2010forhaving

themaximumnumberofMDRTmembers.

AwardedtheGoldShieldbyInstituteofCharteredAccountantsofIndia(ICAI)for

ExcellenceinFinancialReporting.

Wonthe‘ICSQualityChampionAward2010’forContinualQualityImprovement.

ICRAreaffirmed’iAAA’ratingtoSBILife,indicatinghighestclaimspayingability

andmeetingpolicyholdersobligations.

FinancialYear0809:

RankedamongglobaltopthreeintermsofnumberofMillionDollarRoundTable

(MDRT)members.

BaggedthecovetedpersonalfinanceawardOutlookMoneyNDTVProfit"BestLife

Insurer2008".

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CRISIL,country’sleadingratingagency,reaffirmeditshighestfinancialrating

AAA/StabletoSBILife.In2007,SBILifebecamethefirstlifeinsurerinIndiato

receivethisratingfromCRISIL.

ICRAassignediAAAratingindicatinghighestclaimspayingabilitytoSBILife

Insurance.

RetainedISO9001:2000certificateforsuperiorclaimsettlementprocess.

FinancialYear0708:

Ranked amongst global top five life insurance companies in the number ofMDRT

members.

Ratedasthe’TheMostTrustedPrivateLifeInsurer’accordingtoasurveyconducted

by Brand Equity in association with AC Nielsen ORGMARG and the Economic

TimesIntelligenceBureau.

Receivedthehighestfinancialrating’AAA’fromCRISIL.

Forayedintomicroinsurancewiththelaunchof’GrameenShakti’inBhubaneshwar,

Orissafortheeconomicallyunderprivilegedsectionsofsociety.

ReceivedISO9001:2000certificationforsuperiorclaimsettlementprocess.

Received CMMI Level 3 certification for IT processes and software development

capabilities.

FinancialYear0607:

•SecondconsecutiveyearofProfitability

•Morethan6.40Millionlivescovered

FinancialYear0506:

•ReportedarobustnetprofitofRs.2.02Cr

CORPORATESOCIALRESPONSIBILITY

SBILife’sCSRInitiativeonWorldLeprosyDay

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CoincidingtheWorldLeprosyDayi.e.30thJanuary,SBILifesupportedaLeprosy

EradicationTrustLoknayak,bydonatingambulance.

Mr.AtanuSen,MD&CEO,SBILifepresentingtheambulancekeystoDr.JagdishSamant,

InternationalAwardWinnerandFounderofLoknayakJayaprakashNarayanLeprosy

EradicationTrust.

SBILife’sCSRInitiativeEnablingMentallyChallengedChildren

SBILifeparticipatedinMumbaiMarathon2013tosupportmentallychallengedchildren

throughitsCSRpartnerSwayamsiddh.

Mr.AtanuSen,MD&CEOpresentedthecontributionchequeforSBILife’sCSRInitiative

toDr.VandanaMehta,SwayamsiddhCSRPartnerforenablingmentallychallenged

childreninthepresenceofMr.SudhinRoyChowdhury,Member(Life),IRDA.

TeamSBILifewithwriterChetanBhagatatMumbaiMarathon2013

CONCLUSION

StateBankofIndialeadinginthecountry,itprovidesavarietyofproductsandservicesto

differentsegmentsofcustomers.

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Thebankaimstoservecustomersfromteenagerstoseniorcitizens,hencedifferentproducts

designtosuitspecificrequirementsoftheabove.

Aimstoserveallclassesofsocietyfromthesalariedmiddleclasstothehighincomebusiness

class.

Customersarecategorizedandsegmentedaccordingtotheirrequirementsandneeds.

Customerswhoaremoreprofitabletothebank(HighValueCustomers)areprovidedspecial

facilities.PriorityBankingismeanttoservethesehighvaluecustomers.

ThebankwantsitscustomerstotransactmorethroughinternetbankingandATM,ratherthe

customerstheconveniencetotransactanytime,anywhere.

ThebankhastiedupwithotherBanksothatitscustomercanuseotherbanksATMfacilities

fortransactions.

ATfacilityismostpopularwaytotransactwiththeBank.

OverallthecustomersappreciatetheServicesandProductsofferedbytheBankandare

willingtorecommendtheBanktotheiracquaintances,butmoreattentionhastopaytowards.

IncreasingthenumberofATMmachines.

ImprovingInternetBankingFacility.

Bibiliography

www.statebankofindia.com

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www.sbi.com

www.economicstime.com

www.sbilifeinsurance.com

www.sbigeneralinsurance.com

www.wikipedia.org

www.moneycontrol.com

EXPERIENCE

Iamverythankfultoofficersofthestatebankofindiaandotheremployeestogiving

methemostmemorableexperienceofmylife.Theyalltreatedwithmeverykindly.I

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learnedmanythingsduringmytrainingperiod.EarlierIhavenoknowledgeaboutthe

bankingsystembutafterthistrainingIlearnmanythings.

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THANKYOU