Role of Sbi & HDFC in Business Finance

Role of SBI & HDFC in Business Finance
CHAPTER 1 INTRODUCTION
Business Finance
Finance is the process of channeling funds from savers to users in the form of credit, loans, or invested capital through agencies including commercial banks, savings and loan associations, and such nonbank organizations as credit unions and investment companies. Finance can be divided into three broad areas: business finance, personal finance, and public finance. All three involve generating budgets and managing funds for the optimum results. Business finance is the task of providing the funds for a corporation's activities. For small business, this is referred to as SME finance (Small and Medium Enterprises). It generally involves balancing risk and profitability, while attempting to maximize an entity's wealth and the value of its stock. Long term funds are provided by ownership equity and long-term credit, often in the form of bonds. The balance between these forms the company's capital structure. Short-term funding or working capital is mostly provided by banks extending a line of credit. Another business decision concerning finance is investment, or fund management. An investment is an acquisition of an asset in the hope that it will maintain or increase its value. In investment management in choosing a portfolio one has to decide what, how much and when to invest. To do this, a company must:

Identify relevant objectives and constraints: institution or individual goals, time horizon, risk aversion and tax considerations; Identify the appropriate strategy: active v. passive hedging strategy Measure the portfolio performance
Financial management is duplicate with the financial function of the Accounting profession. However, financial accounting is more concerned with the reporting of historical financial information, while the financial decision is directed toward the future of the firm. Raising and managing of funds by business organizations. Such activities are usually the concern of senior managers, who must use financial forecasting to develop a longterm plan for the firm. Shorter-term budgets are then devised to meet the plan's goals. When a company plans to expand, it may rely on cash reserves, expected increases in sales, or bank loans and trade credits extended by suppliers. Managers may also decide to raise long-term capital in the form of either debt (bonds) or equity (stock). The value of the company's stock is a constant concern, and managers must decide Marketing Research DIMAT Page 1

whether to reinvest profits or to pay dividends. Other duties of financial managers include managing accounts receivable and fixing the optimum level of inventories. When deciding how to deploy corporate assets to increase growth, financial managers must also consider the benefits of mergers and acquisitions, analyzing economies of scale and the ability of businesses to complement each other.
Company Profile
STATE BANK OF INDIA Type Industry : Public (BSE, NSE:SBI) & (LSE: SBID) : Banking Insurance Capital Markets : 1806 Calcutta, Bengal Presidency, British India (as Bank of Calcutta) : Corporate Centre, Madam Cama Road, Mumbai 400 021 India : Om Prakash Bhatt, Chairman : Rs 113,535.99 crore (US$ 25.32 billion) (2009) : Rs 10,998 crore (US$ 2.45 billion)(2009) : Rs 1,188,060 crore (US$ 264.94 billion)(2009) : Rs 65,912 crore (US$ 14.7 billion) (2009) : 205,896 : www.sbi.co.inl
Founded Headquarters
Key people Revenue Net income Total assets Total equity Employees Website
STATE BANK OF INDIA:Not only many financial institution in the world today can claim the antiquity and majesty of the State Bank Of India founded nearly two centuries ago with primarily intent of imparting stability to the money market, the bank from its inception mobilized funds for supporting both the public credit of the companies governments in the three presidencies of British India and the private credit of the European and India merchants from about 1860s when the Indian economy book a significant leap forward under the Marketing Research DIMAT Page 2

impulse of quickened world communications and ingenious method of industrial and agricultural production the Bank became intimately in valued in the financing of practically and mining activity of the Sub- Continent Although large European and Indian merchants and manufacturers were undoubtedly thee principal beneficiaries, the small man never ignored loans as low as Rs.100 were disbursed in agricultural districts against glad ornaments. Added to these the bank till the creation of the Reserve Bank in 1935 carried out numerous Central Banking functions. Adaptation world and the needs of the hour has been one of the strengths of the Bank, In the post depression exe. For instance when business opportunities become extremely restricted, rules laid down in the book of instructions were relined to ensure that good business did not go post. Yet seldom did the bank contravenes its value as depart from sound banking principles to retain as expand its business. An innovative array of office, unknown to the world then, was devised in the form of branches, sub branches, treasury pay office, pay office, sub pay office and out students to exploit the opportunities of an expanding economy. New business strategy was also evaded way back in 1937 to render the best banking service through prompt and courteous attention to customers. A highly efficient and experienced management functioning in a well defined organizational structure did not take long to place the bank an executed pedestal in the areas of business, profitability, internal discipline and above all credibility A impeccable financial status consistent maintenance of the lofty traditions if banking an observation of a high standard of integrity in its operations helped the bank gain a pre- eminent status. No wonders the administration for the bank was universal as key functionaries of India successive finance minister of independent India Resource Bank of governors and representatives of chamber of commercial showered economics on it. Modern day management techniques were also very much evident in the good old days years before corporate governance had become a puzzled the banks bound functioned with a high degree of responsibility and concerns for the shareholders. Unbroken records of profits and a fairly high rate of profit and fairly high rate of dividend all through ensured satisfaction, prudential management and asset liability management not only protected the interests of the Bank but also ensured that the obligations to customers were not met. The traditions of the past continued to be upheld even to this day as the State Bank years itself to meet the emerging challenges of the millennium. ABOUT LOGO
PLACE SHARE NEWS ... Marketing Research
THE TO THE
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SHARE THE VIEWS Togetherness is the theme of this corporate loge of SBI where the world of banking services meet the ever changing customers needs and establishes a link that is like a circle, it indicates complete services towards customers. The logo also denotes a bank that it has prepared to do anything to go to any lengths, for customers. The blue pointer represent the philosophy of the bank that is always looking for the growth and newer, more challenging, more promising direction. The key hole indicates safety and security.
MISSION, VISION AND VALUES

MISSION STATEMENT: To retain the Banks position as premiere Indian Financial Service Group, with world class standards and significant global committed to excellence in customer, shareholder and employee satisfaction and to play a leading role in expanding and diversifying financial service sectors while containing emphasis on its development banking rule. VISION STATEMENT: Premier Indian Financial Service Group with prospective world-class Standards of efficiency and professionalism and institutional values. Retain its position in the country as pioneers in Development banking. Maximize the shareholders value through high-sustained earnings per Share. An institution with cultural mutual care and commitment, satisfying and Good work environment and continues learning opportunities. VALUES: Excellence in customer service Profit orientation Belonging commitment to Bank Fairness in all dealings and relations Risk taking and innovative DIMAT Page 4
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Team playing Learning and renewal Integrity Transparency and Discipline in policies and systems.
PRODUCTS & SERVICES

PRODUCTS: State Bank of India renders varieties of services to customers through the following products: Personal Loan Product:
SBI Term Deposits
SBI Recurring Deposits SBI Housing Loan SBI Car Loan SBI Educational Loan
SBI Personal Loan SBI Loan For Pensioners
Loan Against Mortgage Of Property

Loan Against Shares & Debentures
Rent Plus Scheme Medi-Plus Scheme

Rates Of Interest
SBI Housing loan SBI Housing loan or Mortgage Loan schemes are designed to make it simple for you to make a choice at least as far as financing goes! Marketing Research DIMAT Page 5

'SBI-Home Loans' Features:

No cap on maximum loan amount for purchase/ construction of house/ flat Option to club income of your spouse and children to compute eligible loan amount Provision to club expected rent accruals from property proposed to compute eligible loan amount Provision to finance cost of furnishing and consumer durables as part of project cost Repayment permitted upto 70 years of age Free personal accident insurance cover Optional Group Insurance from SBI Life at concessional premium (Upfront premium financed as part of project cost) Interest applied on daily diminishing balance basis 'Plus' schemes which offer attractive packages with concessional interest rates to Govt. Employees, Teachers, Employees in Public Sector Oil Companies. Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat No Administrative Charges or application fee Prepayment penalty is recovered only if the loan is pre-closed before half of the original tenure (not recovered for bulk payments provided the loan is not closed) Provision for downward refixation of EMI in respect of floating rate borrowers who avail Housing Loans of Rs.5 lacs and above, to avail the benefit of downward revision of interest rate by 1% or more In-principle approval issued to give you flexibility while negotiating purchase of a property Option to avail loan at the place of employment or at the place of construction Attractive packages in respect of loans granted under tie-up with Central/ State Governments/ PSUs/ reputed corporates and tie-up with reputed builders (Please contact your nearest branch for details)
SERVICES:

DOMESTIC TREASURY SBI VISHWA YATRA FOREIGN TRAVEL CARD BROKING SERVICES REVISED SERVICE CHARGES ATM SERVICES INTERNET BANKING E-PAY E-RAIL
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RBIEFT SAFE DEPOSIT LOCKER GIFT CHEQUES MICR CODES FOREIGN INWARD REMITTANCES
ATM SERVICES STATE BANK NETWORKED ATM SERVICES State Bank offers you the convenience of over 8000 ATMs in India, the largest network in the country and continuing to expand fast! This means that you can transact free of cost at the ATMs of State Bank Group (This includes the ATMs of State Bank of India as well as the Associate Banks namely, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Saurashtra, and State Bank of Travancore) and wholly owned subsidiary viz. SBI Commercial and International Bank Ltd., using the State Bank ATM-cum-Debit (Cash Plus) card. KINDS OF CARDS ACCEPTED AT STATE BANK ATMs Besides State Bank ATM-Cum-Debit Card and State Bank International ATM-CumDebit Cards following cards are also accepted at State Bank ATMs: 1) State Bank Credit Card 2) ATM Cards issued by Banks under bilateral sharing viz. Andhra Bank,Axis Bank, Bank of India, The Bank of Rajasthan Ltd., Canara Bank, Corporation Bank, Dena Bank, HDFC Bank, Indian Bank, Indus Ind Bank, Punjab National Bank, UCO Bank and Union Bank of India. 3) Cards issued by banks (other than banks under bilateral sharing) displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos 4) All Debit/ Credit Cards issued by any bank outside India displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos Note: If you are a cardholder of bank other than State Bank Group, kindly contact your Bank for the charges recoverable for usage of State Bank ATMs.
STATE BANK INTERNATIONAL ATM-CUM-DEBIT CARD
Eligibility:
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All Saving Bank and Current Account holders having accounts with networked branches and are: 18 years of age & above Account type: Sole or Joint with Either or Survivor / Anyone or Survivor NRE account holders are also eligible but NRO account holders are not.
Benefits:
Convenience to the customers travelling overseas
Can be used as Domestic ATM-cum-Debit Card Available at a nominal joining fee of Rs. 200/Daily limit of US $ 1000 or equivalent at the ATM and US $ 1000 or equivalent at Point of Sale (POS) terminal for debit transaction Purchase Protection*up to Rs. 5000/- and Personal Accident cover*up to Rs. 2,00,000/Charges for usage abroad: Rs. 150+ Service Tax per cash withdrawal Rs. 15 + Service Tax per enquiry.
State Bank ATM-cum-Debit (State Bank Cash plus) Card : Indias largest bank is proud to offer you unparalleled convenience viz. State Bank ATM-cum-Debit(Cash Plus) card. With this card, there is no need to carry cash in your wallet. You can now withdraw cash and make purchases anytime you wish to with your ATM-cum-Debit Card. Get an ATM-cum-Debit card with which you can transact for FREE at any of over 8000 ATMs of State Bank Group within our country.
SBI GOLD INTERNATIONAL DEBIT CARDS
E-PAY Marketing Research DIMAT Page 8

Bill Payment at Online SBI (e-Pay) will let you to pay your Telephone, Mobile, Electricity, Insurance and Credit Card bills electronically over our Online SBI website
E-RAIL
Book your Railways Ticket Online. The facility has been launched wef Ist September 2003 in association with IRCTC. The scheme facilitates Booking of Railways Ticket Online. The salient features of the scheme are as under: All Internet banking customers can use the facility. On giving payment option as SBI, the user will be redirected to onlinesbi.com. After logging on to the site you will be displayed payment amount, TID No. and Railway reference no. . The ticket can be delivered or collected by the customer. The user can collect the ticket personally at New Delhi reservation counter. The Payment amount will include ticket fare including reservation charges, courier charges and Bank Service fee of Rs 10/. The Bank service fee has been waived unto 31st July 2006.
SAFE DEPOSIT LOCKER For the safety of your valuables we offer our customers safe deposit vault or locker facilities at a large number of our branches. There is a nominal annual charge, which depends on the size of the locker and the centre in which the branch is located.
NRI HOME LOAN
SALIENT FEATURES Purpose of Loan Loans to NRIs & PIOs can be extended for the following purposes.

To purchase/construct a new house / flat To repair, renovate or extend an existing house/flat To purchase an existing house/flat To purchase a plot for construction of a dwelling unit. To purchase furnishings and consumer durables, as a part of the project cost
AGRICULTURE / RURAL
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State Bank of India Caters to the needs of agriculturists and landless agricultural labourers through a network of 6600 rural and semi-urban branches. here are 972 specialized branches which have been set up in different parts of the country exclusively for the development of agriculture through credit deployment. These branches include 427 Agricultural Development Branches (ADBs) and 547 branches with Development Banking Department (DBDs) which cater to agriculturists and 2 Agricultural Business Branches at Chennai and Hyderabad catering to the needs of hitech commercial agricultural projects.
BUSINESS STRATEGY
Institution for advanced learning: to provide state of the art training in financial products to middle level and senior level executives. Internal consultant/change agent: to act as a catalyst for change in attitudes and orientation of banking staff and to provide expertise and consultative support Feedback supplier: to capture and structure feedback from trainees and from the market Think tank: to provide expert and inform suggestions, model business strategies, analysis of market developments from a banker perspective. Research and development role: to carry out research on contemporary subjects that are relevant to the banks short term and medium term and operational needs and policy formulation Overlapping staff training centers: to validate and closely monitor the staff training centers in seven circles attached to the academy.
Role of SBI in Business Finance in Raipur City:Business Loan Traders Easy Loan Scheme: This scheme is launched by SBI to provide hassle free loan to Traders. Any business man/ entrepreneur/ Professional and self employed person can avail this loan. Loan under the scheme can be availed to meet normal business requirements and is sanctioned against equitable mortgage of property. Any residential or commercial property in the name of unit/ proprietor/partner OR their close relatives is acceptable. Agriculture property or property outside urban limits is not accepted. The advance can be availed by way of Loan or Cash Credit limit. It can also be availed for Non Fund Based requirements (for issuance of Bank guarantees or LCs). Cash Credit limit or non fund based limit is renewable every 12 mths.Loan can be repaid in monthly or quarterly, even half yearly installments - as may be suitable to the borrower in a period upto 5 years. Marketing Research DIMAT Page 10

Minimum and maximum amount of loan is Rs 25,000/- and Rs 5.00 Crore. Margin is 35%. i.e. loan can be upto 65% of the realizable value of the property or the business requirement- whichever is less. Business requirement is assessed on the basis of projected business turnover. Interest at floating rate is charged at monthly intervals on daily reducing balance. No Third party guarantee is required to avail the loan. Retail Trade The Bank finances Small Business activities that can be started with relatively lower investment and with no special skills on the part of the entrepreneurs. In this category, the SBI extends loans to retail traders who act as a vital link between the manufacturers of goods or commodities and the consumer. The bank offers working capital products as well as loans for purchase, renovation and repairing of equipment. Retail trade finance is normally capped at Rs 5 lakh. Any individual or a firm (partnership or proprietorship) engaged primarily in buying and selling mercantile goods is eligible for this mode of finance. For requirements up to Rs 25,000, no margins are involved. For needs ranging from Rs 25,000 to Rs 50,000, the margin is set at 20 per cent. In other words, the quantum of the loan will be restricted to 80 per cent of the unit's expenditure. For fund needs above Rs 50,000, a 25 per cent margin may be applied. Security Loan amount Loan upto Rs.25000/Primary Collateral
Charge over the assets Nil purchased out of Banks finance Charge over the assets Charge Over the purchased out of Banks immovable/movable finance assets/third party guarantee as per RBI guidelines
Above Rs.25,000/-
Flexi Loan Eligibility Should have earned a pre-tax profits in each of the immediately preceding 3 years The trader should be well established and should have a proven record of profitability Purpose The loan can be considered for any general purposes like Marketing Research DIMAT Page 11

Holding of stocks/book debts Acquisition of land and building Building construction/up gradation and renovation of offices, showrooms, godowns etc Substitution of high cost debt Shoring of networking capital Computerization expenditure
Nature of facility: Term loan Margin: 20% Tenure of Loan: 3 to 5 years. Repayment to be made in monthly, quarterly instalments as per the normal cash generation cycle. Primary security:- Hypothecation charge over the Current Assets and Fixed assets. Where finance is extended for acquisition of land and building, building construction, up gradation and renovation of offices, showrooms and godowns etc. equitable mortgage of relative fixed assets will be considered as the primary security. Collateral security:- Tangible security such as immovable property, bank deposits, NSC, RBI relief bonds etc to the extent of a minimum of 100% of the limits sanctioned personal guarantees of proprietor/partners/promoters to be invariably obtained. Loan amount Min Rs. 1 lakh Max Rs. 10 lakhs
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HDFC BANK:-
HDFC Bank
Type Industry : Public (BSE 500180, NYSE: HDB) : Banking Insurance Capital Markets and allied industries : 1994 Calcutta, Bengal Presidency, British India (as Bank of Calcutta) : Mumbai, India : Mr. Aditya Puri, Managing Director Mr. Harish Engineer, Executive Director : Rs 197.5 billion (2009) : Rs 2.24 billion (2009) : Rs 1.8TRIillion (2009) : 52687 (2009) : www.hdfc.com
Founded Headquarters Key people Revenue Net income Total assets Employees Website
HDFC bank is very consistent player in the new private sector banks. New private sector banks to withstand the competition from public sector banks came up with innovative products and superior services.
2001
Branches 43% ATM 40% Phone Banking 14% Internet 2% Mobile 1%
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2005
Branches 17% ATM 45% Phone Banking 12% Internet 25% Mobile 1%
(%customer initiated Transaction by Channel)
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PRODUCTS & CUSTOMER SEGMENTS:Loan Product Deposit Product Investment & Insurance
Auto Loan Loan Against Security Loan Against Property Personal loan Credit card 2-wheeler loan Commercial vehicles finance Home loans Retail business banking Tractor loan Working Capital Finance Construction Equipment Finance Health Care Finance Education Loan Gold Loan
Saving a/c Current a/c Fixed deposit Demat a/c Safe Deposit Lockers
Mutual Fund Bonds Knowledge Centre Insurance General and Health Insurance Equity and Derivatives Mudra Gold Bar
Cards
Payment Services
Access To Bank
Credit Card Debit Card Prepaid Card -------------------------------Forex Services --------------------------- Product & Services Trade Services Forex service Branch Locater RBI Guidelines
NetSafe Merchant Prepaid Refill Billpay Visa Billpay InstaPay DirectPay VisaMoney Transfer eMonies Electronic Funds Transfer Online Payment of Direct Tax
NetBanking OneView InstaAlert MobileBanking ATM Phone Banking Email Statements Branch Network
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Role of SBI & HDFC in Business Finance WHOLESALE BANKING

Corporate Small and Medium Enterprises Funded Services Non Funded Services Specialized Services Value added services Internet Banking Financial Institutions and Trusts
Funded Services Non Funded Services Value Added Services Internet Banking
BANKS Clearing Sub-Membership RTGS submembership Fund Transfer ATM Tie-ups Corporate Salary a/c Tax Collection Financial Institutions Mutual Funds Stock Brokers Insurance Companies Commodities Business Trusts
BUSINESS MIX

HDFC Bank is a consistent player in the private sector Bank and have a well balanced product and business Mix in the Indian as well as overseas markets. Customer segments (retail & wholesale) account for 84% of Net revenues ( FY 2008) Higher retail revenues partly offset by higher operating and credit costs. Equally well positioned to grow both segments.
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Role of SBI & HDFC in Business Finance NRI SERVICES

Accounts & Deposits Remittances
Rupee Saving a/c Rupee Current a/c Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians
North America UK Europe South East Asia Middle East Africa Others Quick remit IndiaLink Cheque LockBox Telegraphic/ Wire Transfer Funds Transfer Cheques/DDs/TCs
Investment & Insurances
Loans
Mutual Funds Insurance Private Banking Portfolio Investment Scheme Payment Services
Home Loans Loans Against Securities Loans Against Deposits Gold Credit Card Access To Bank
NetSafe BillPay InstaPay DirectPay Visa Money Online Donation
NetBanking OneView InstaAlert ATM PhoneBanking Email Statements Branch Network
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Role of SBI & HDFC in Business Finance BUSINESS STRATEGY

HDFC BANK mission is to be "a World Class Indian Bank", benchmarking themselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Bank's risk appetite. Bank is committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. Continue to develop new product and technology is the main business strategy of the bank. Maintain good relation with the customers is the main and prime objective of the bank.
HDFC BANK business strategy emphasizes the following: Increase market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Leverage our technology platform and open scalable systems to deliver more products to more customers and to control operating costs. Maintain current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract the targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce banks cost of funds. Focus on high earnings growth with low volatility.
Role of HDFC bank in Business Finance in Raipur City

Business Loan:Small & Medium Enterprises:At HDFC Bank we understand how much of hard work goes into establishing a successful SME. We also understand that your business is anything but "small" and as demanding as ever. And as your business expands and enters new territories and markets, you need to keep pace with the growing requests that come in, which may lead to purchasing new, or updating existing plant and equipment, or employing new staff to cope with the demand. Thats why we at HDFC Bank have assembled products, services, resources and expert advice to help ensure that your business excels. Funded Services Funded Services from HDFC Bank are meant to directly bolster the day-to-day working of a small and a medium business enterprise. From working capital finance to credit substitutes; from export credit to construction equipment loan - we cater to virtually Marketing Research DIMAT Page 18

every business requirement of an SME. Click on the services below that best define your needs. Working Capital Finance Commercial Vehicle finance Construction Equipment Loan Short Term Finance Bill Discounting Credit Substitutes Export Credit Structured Cash Flow Financing Real Estate Initiatives Non-Funded Services
Under Non-Funded services HDFC Bank offers solutions that act as a catalyst to propel your business. Imagine a situation where you have a letter of credit and need finance against the same or you have a tender and you need to equip yourself with a guarantee in order to go ahead. This is exactly where we can help you so that you don't face any roadblocks when it comes to your business. The following are the services that will precisely tell you what we can do. Business Accounts HDFC Bank Trade Letters of Credit Guarantees Collection of Documents Cash Management Services Forex Desk Money Market Desk Derivatives Desk Services to Employee Trusts Services to Cash Surplus Corporate DIMAT Page 19
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Tax Collection Bankers to Rights/Public Issue Specialized Services
HDFC Bank is one of the most trusted entities when it comes to specialised services like selling of precious metals to customers. Under specialised services you can also avail customised control of your value chain through our internet banking platform. Precious Metals Channel Financing Value Added Services
There is a plethora of services that we offer under value added services. There's corporate salary account which ensures smooth payment methods to your staff. You can avail an assortment of credit cards and debit cards from our merchant services . The following are the highlights of this service: Real Time Gross Settlement Corporate Salary Accounts Reimbursement Account Merchant Services Custody Services HDFC Bank Gold Business Credit Card Internet Banking
Internet banking is a revolutionary service under the banking sector and HDFC Bank is a forerunner in providing you with this service. We provide state-of-the-art payment gateway services to industries and companies in order to ease transaction processing. This in turn enhances the credibility of your business and makes banking extremely cost-efficient.
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CHAPTER 2 OBJECTIVE OF THE STUDY

THE PURPOSE OF THE RESEARCH
The basic purpose of this research is to find the Role of SBI & HDFC bank in business finance in Raipur City. OBJECTIVES The objectives of the study are as follows: 1) The objective of study was to find the role of SBI & HDFC bank in business finance in Raipur. 2) To find which bank provide more business finance in Raipur & why?
PROBLEM
To find out problem is the first stage of the research process. It represents translating the management problem into research problem. It is right said, A problem well defined is half solved. State Bank of India (SBI) is the country's largest commercial bank. HDFC Bank always believed in winning the hearts of its customers with quality products and services. Marketing Research DIMAT Page 21

Inspite of product quality, services SBI & HDFC Bank provides why do still prefer more to SBI bank for business finance. Limitations The survey was conducted within the limited time frame; so few shortcomings may be expected. The respondents personal bias may be another factor, which is uncontrollable. The finding of the survey is strictly based on the responses of the respondents. It is difficult to find the euthenics be true, so we are assuming them to be true. It was very difficult to explain the respondents about how to fill the questionnaire & it took time for data collection.
CHAPTER 3 LITERATURE REVIEW

By Richard G.P. McMahon, Scott Holmes Sound financial management is crucial to the survival and well-being of small enterprises of all types. Studies of reasons for small business failure inevitably show poor or careless financial management to be the most important cause (see Berryman 1983, Peacock 1985 for reviews of the relevant literature). Potts (1977, p.2) states the case more succinctly: . . . the clearest and most startling distinctions between successful and discontinued small businesses lie in their approach to the uses which can be made of accounting information .... In recognition of such findings, recent years have seen increased attention to financial management in small business training and education programs and in the many books and articles written for small business. It is not unreasonable to ponder whether this attention has had a visible impact on the way in which small businesses are operated. It seems appropriate to review, and attempt to integrate, available empirical research findings concerning the financial management practices of small business in North America. Such a review can lead to improved understanding of both the research conducted to date and the financial Marketing Research DIMAT Page 22

management practices under scrutiny. Furthermore, it can act as a stimulus for future research. An additional function of this review is to identify and highlight trends in the financial management practice of small firms. This will assist policymakers in understanding the financial environment in which small firms operate and the possible impact of the current and proposed policies directed at the small business sector. Over the past decade there has been a significant increase in government sponsored agencies and educational programs directed at the small business sector and in interest in small firms, as illustrated by the President's annual report on small business. Such attention warrants consideration as to whether these policies have positively influenced the financial practices of small firms. This article provides a concise summary of research evidence which indicates that financial practice among small firms has not experienced any significant change over the past fifteen years. This result should have impact on future policy decisions. NORTH AMERICAN PRACTICE Accounting Systems It is clear that significant progress has been made in encouraging small business owner-managers to install and use accounting information systems. For example, in a survey of over 360 small businesses in Georgia, DeThomas and Fedenberger (1985) found a high standard of financial recordkeeping. Around 92 percent of respondents had some form of record-keeping beyond check stubs and deposit receipts. D'Amboise and Gasse (1980) studied the utilization of formal management techniques in 25 small shoe manufacturers and 26 small manufacturers in the plastics industry in Quebec, Canada. A cost accounting system was in operation in about 88 percent of businesses studied. It is also clear that the availability of affordable computers and suitable software has played an important part in promoting this situation. In a survey of 129 small manufacturing businesses in the province of Quebec, Raymond and MagnenatThalmann (1982) discovered a preponderance of accounting-related applications among computer software in use, particularly in the areas of accounts receivable, payroll, accounts payable, general ledger, sales analysis, and inventory. Further studies undertaken in a wide variety of settings by Cheney (1983), Raymond (1985), Malone (1985), DeThomas and Fredenberger (1985), Farhoomand and Hryck (1985), and Nickell and Seado (1986) confirm that accounting/financial management applications dominate as computer applications in the small businesses examined. Financial Reports Reflecting the availability of computerized accounting systems, there is some evidence that the standard of financial reporting in small businesses in North America is now quite high. DeThomas and Fredenberger (1985) found that 81 percent of the small businesses in their survey regularly produced summary financial information. Virtually all (91 percent) of the summary information was in the form of traditional financial statements (balance sheet, income statement, funds statement, etc.), with the remainder being bank reconciliations and operating summaries. However, none of the Marketing Research DIMAT Page 23

respondents were regularly producing cashflow information. Additional financial information respondents would like to have included were a cashflow summary (67 percent) and a contribution-format (percent-of-sales) income statement (43 percent). Further encouraging results are provided by a study of 398 small pharmacies located in the states of Michigan, North Carolina, Nebraska, Rhode Island and Washington reported by Thomas and Evanson (1987). Income statements and balance sheets were prepared at least quarterly by 62.5 percent of the respondents, and annually by 32.1 percent. Over 85 percent of the respondents indicated that an outside accountant...
CHAPTER 4
RESEARCH METHODOLOGY
Research Tools: The research tool used for this research is PRIMARY DATA and SECONDARY DATA. In primary data the following research design is being followed: i) Exploratory Research: Questionnaire Survey (Sample Size 100) ii) Descriptive Research: On the basis of the questionnaire survey, the analysis is done in order to find out the reason why people are interested in business finance in SBI or HDFC bank We have used 2 types of research design they are Marketing Research DIMAT Page 24

a) Exploratory research b) Descriptive research
Exploratory: - In this preliminary data are gathered to shed light on the trial
nature of the problem & possibly suggest some new ideas.
Descriptive: -That is to describe certain magnitudes, such as how many

business institutions are fully satisfied with the business finance plan of SBI or HDFC. Exploratory research because we did not know the actual problem faced in Business Finance by SBI & HDFC. So for that we did an In-depth interview of 100 business institutions to find what the major difficulties are faced by these two banks. In the interview we asked about business finance of SBI & HDFC bank in different business institutions. We found that a) Major business institutions who take finance from SBI are satisfied. b) The institutions have trust on SBI as SBI is a Public Ltd Bank. c) SBI gives the chance to pay in easily instalment to the bank d) SBI takes fewer securities. e) SBI provides better facilities f) HDFC Bank always believed in winning the hearts of its customers with quality products and services. From the detailed interview of these 100 business institutions we thought that major reasons which can affect the business finance decision of people towards SBI & HDFC bank are 1) Easily instalment 2) Fewer securities 3) Better facilities
Sources of collecting data :There are two types of data: Primary Data Secondary Data Marketing Research DIMAT Page 25

Primary data can be collected either by census method or by sampling method. In census method data is collected from all individual units concerned with the enquiry while in a sampling method we take a few representatives items from the total observation concerned with enquiry.
I. Primary Data: The primary data is one which is collected by the investigator himself for the first time for e.g. to know the intelligence quotient of the students we can give them the test & collect the relevant data ourselves. The data so collected will be primary data. In India There are various agencies, which collect primary data: national sample survey, organization is one of them. National council of applied economic research is another & so on data collected in the population census constitutes primary data.
Methods of collecting Primary Data Direct personal investigation

The investigator has to contact the sources of information directly & personally. This method of collecting data is quite suitable When the area of investigation is limited. When a higher degree of accuracy is needed. When the result of the investigation are to be kept confidential When the area of investigation is complex & heterogeneous. When a greater degree of intellectual power experiences & labors are required.
2. Questionnaires method: Questionnaires refer to a device for securing answers to question by using a form, which the respondent fills in himself. The numerator goes to the informants with prepared questionnaires & gets the replied question. This method is generally used by public organization like NCAER etc. for the research project that need a high rate of response.
3. MAIL SURVEY 4. BY TELEPHONE II. SECONDARY DATA
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Data that has been collected for another purpose, but may be reanalyzed in a subsequent study .Data, documents, records, or specimens that have been collected, or will be collected solely for non-research purposes (such as medical treatment or diagnosis) and are in existence prior to the beginning of the study. Published accessible data from a variety of sources for research and other purposes.
SOURCES OF SECONDARY DATA PUBLISHED SOURCES: There are certain international, national & local agencies which published statistical data on a regular basis certain periodicals are published regularly. Moreover there are certain research organizations, which publish magazines or other periodicals. These sources can be summed up as follows; SAMPLE Sampling Frame: A Sampling frame consists of a list of item from which the sample is to be drawn. The sample frame for this research constitutes all the business institutions in Raipur City. Sampling Unit: A decision has to be taken concerning a sampling unit before selecting sample sampling unit may be a geographical one, a construction unit, a social unit or it may be an individual. The sample unit for this research constitutes the business institutions. Sample Size: The sample size of our research was 100 but only 75 institutions give reply. Marketing Research DIMAT Page 27 International publication Official publication of central & state govt. Semi-official publication Committee report Private publications

Sample Size Selection: Sample size was selected on the basis of the 3 factors. It was difficult to find out that which business institutions has taken loan. The respondents were not much educated so it was difficult to make them understand about the questionnaire. Business institutions were not easily available.
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CHAPTER 6
DATA INTERPRITATION
The sample was 150 but out of which 29 people dint went to Tanishq for buying of gold. So our sample size came to 121.
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Out of 121 there were 65 female that constitute 54% of total sample & rest are male they are 56 which contributes 46% of total sample.
FROM THE ABAVE TABLE WE FIEND THAT MOST OF THE PEOPLE WHO VISITED TANISHQ STORE MONTHLY INCOME IS MORE THAN RS-30000.
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The respondents average income lies from 5000 to 30000 & above so respondents were a) b) c) d) 5000 10000 = 6 10000 20000 = 11 20000 30000 = 18 30000 & above = 86
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The above chart gives us the detail of people who visits Tanishq for repurchase where we find 77% people are not going to repurchase at Tanishq and 23% people had gone for repurchase.
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Avave table and chart shows 88% people aware about Tanishq show room in Kolkata that mean most of the people aware about Tanishq in Kolkata.
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From above written table and chart the researcher find People know about Tanishq from TV 19%,News paper 31%,Hoarding 30%,Friends 10%,Pamphiets 10%.So we conclude that most effective media for Tanishq is News paper.
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From the above written table the researcher find out 39% of people recommend other people to buy gold from Tanishq and 61% people not.
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According to survey of researcher 22% people said Tanishq is V.good, 38% said average,19% said good,15% said bad and 6% said very bad.
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From the above given table researcher find that 42% of the gold consumers are loyal to their gold store.
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From the above given table and chart we find about different stores of gold in Kolkata and which one people prefer most.There are five different stores of gold in Kolkata like Senko gold, Sudha jeweler,P.C.Chandra,Tanishq,and local store.People like most local than P.C.Chandra.
In the above given data table researcher shoes that a) According to the survey people say price of Tanishq is not up to the mark and it is too high. Marketing Research DIMAT Page 38

b) Quality of gold is very high in Tanishq. c) Service they providing is also good most of the people says that. d) Patterns available is average to good. e) Location of the store is very good. f) Ambiance of the store is also good.
CHAPTER 7
FINDINGS On the basis of chi-square test the relation between the variables are significant & few are not significant. Marketing Research DIMAT Page 39

Variables which were significant in the research & which affects the buying behavior of gold are a) Because of price people are not visiting Tanishq. b) People are happy with the quality of Tanishq & they go to Tanishq only because the purity & quality of gold. c) The people also visit Tanishq because they provide better services then the other retailers. d) The pattern are also major factor because of which people does not prefer Tanishq. e) The people says that the location of store is not affecting them to visit Tanishq. f) People are not affected by the ambiance of store From these we can conclude that people are more sencisitve towards price , Quality & availability of pattern. If they find these 3 things ok & they fill that this is what they wanted they will buy from there only. For people of vapi ambiance , proximity to market & service are less important. Conclusion People are more price conscious & they feel that the price in Tanishq are more than what the normal retailers have. They also feel that the quality they get is much higher than the quality what the normal retailers give. They also found that the patterns available are lesser than what they get in the normal retail store. They also are service oriented so they are more attracted because of service they get. People are not affected with the ambiance of the shop.
Recommendation Marketing Research DIMAT Page 40

We would recommend Tanishq following things a) The making charge is affecting their sales so they should cut down their prices. b) The patterns are comparative less so they should provide more number of patterns & also should increase their market share by bringing more innovative scheme & loyalty programs. c) People are more service conscious so they can target young business man & young professional as they are now more in investing money in gold. d) Gold price are increasing day by day so they should increase their sales by selling biscuits of gold rather than selling more of ornaments.
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CHAPTER 8
Questionnaire
DISHA INSTITUTE OF TECHNOLOGY AND MANAGEMENT Dear Sir/Madam I am the students of 2nd Year MBA Course of DIMAT. As a part of our research study I am conducting a survey regarding the perception of people regarding the purchase of gold from different organized & Un organized Retailers. Guidelines for filling the form:1) Please check the box wherever required. 2) Only 1 check per question.
Q 1 ) Name:-________________________________________________________
Q 2) Gender -
male
female
Q 3) Age :- _________________
Q 4) Occupation: - Service
Business
Others
Others:-__________________________
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Q 5) Monthly average INCOME? 5000-10000 10000-20000 20000-30000 30000 & above
Q 6) how often you visit jewellery store? Once a month On Occasion once a year
Q 7) You Buy jewellery from Place Kolkata Howrah Saltlake Dumdum Others Store Name ___________________ ___________________ ___________________ ___________________ ___________________
Q 8) do you buy jewellery from same store every time ? Yes No Why?
If Yes/No ___________________________________________________________
Q 9 ) Rate your jewellery store from 1 to 5 where 1 is the WORST & 5 is the BEST
a) Product are worth price you pay ?
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b) Purity & quality of gold ?
c) The service you get in the store ?
d) The Number of patterns available ?
e) Proximity to market ?
f) Ambiance of Store ?
Q 10) Are You aware about tanishq showroom opened in vapi? Yes No
Q 11) How did you come to know about Tanishq? TV Pamphlets News Paper Friends/relatives Hoardings Others
Q 12) Have you visited Tanishq Store? Yes No
Q 13) Rate Tanishq On flowing Criteria Given below Particular a) Price Marketing Research DIMAT Page 44 V.Go od Good Averag e Ba d V.ba d

b) c) d) e) f) Purity & Quality of Gold Service Offered Patterns Available Location of Store Ambiance of store
Q 14) During Re-Purchase you often go to Tanishq? Yes No
Q 15) Would you recommend others for Buying Tanishq Products? Yes Q 16) Rate tanishq on over all basis? Particular Tanishq As a Store Thank you V.Good Good Average Bad V.bad No
Bibliography
Tanishq Website Tanishq Outlet Marketing Research TextBook
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THANK YOU
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