MICRO LEVEL MANAGEMENT OF SBI CRDIT CARD AND THERE IMPACT ON

CUSTOMERS INCOME OF KALBURGI

INTRODUCTION
A credit card is a card- taken within the meaning of the section 14(1), consumer credit
Act 1974 of the UK which defines a credit-taken as a card, cheque, voucher, coupon, stamp,
form booklet or other document or think given to an individual by a person carrying on a
consumer credit card business, who undertakes-that on the production of it (where or not
same other action is also required), he will supply, cash, goods and services (or any of them) on
credit, or that were, on the production of it to third party (where or not any other action is also
required), the party supplies cash, goods and services (whether or not deducting any discount
or commission), in return payment to him by the individual

In very simple words credit card can be termed as an unsecured personal loan offered to
customers by the banks where the card-holder could purchase goods and services from
authorized merchant or merchant established (MEs) of the bank up to a fixed limit on credit.
Such credit is normally made available for a period 30 to 45 days. This is turn helps earn income
by way of commission from its merchant establishments; the scheme provided large scope for
sale and increased turnover with assured and prompt payment.

A bank’s job to provide customers with finance services that help people better manage
their lives. As technology advance and competition increases, banks are offering different types
of services to stay current and attract new customer.

Customer income, a term frequently used in marketing, is a measure of how products

and services supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and often a part of a balance score card.

“Customer is the king of today competitive market world”. Every business organization
any other type of service institution have emerged in satisfying the customer by providing their
services in a better customer in designing creative of time honored policies, the success rate
reaches as its peak.

OBJECTIVES OF THE STUDY

 To know the different methods available for credit rating and understanding the credit
rating procedure used in SBI.
 To again insights into the credit risk management activities of the SBI
 To find out the customer awareness of service rendered by SBI.
 To study the composition
  To know which service in the bank is performing well.
 To identify which dimension of service need improvement, so that service in SBI is
enhanced.
 To find out the level of perception of the customer from the service offered in the bank.
 To offer suggestions and recommendations.

SCOPE OF THE STUDY

This study would help us to know about the problem that are faced by the consumer
during transactions. Its would also reveal the problem that are being faced the bank Employees
while dealing with the customers and would also highlight the future prospect of SBI card.

The scope of this research is to identity the service in SBI, this research is based on
primary and secondary data. This study focuses on the dimensions of service. It aims to
understand the skill of the company in the area of the service quality that are performing well
and shows those areas which require improvement, the study was done taking of SBI into
consideration.

METHODOLOGY OF THE STUDY

A research design is simply a plan for study in collection and analyzing the

data. It helps the researcher to conduct the study and insure that economical procedures are
employed and probing is relevant to the problem.

The study consists of mainly both primary and secondary data that is annual

Report of SBI Gulbarga. The primary data is collected by administering the pre-structured
questionnaire of 50 consumer by personal interaction and the secondary data is collected by
SBI bank annual report.

Source of Data Collection

 Annual report of the bank.

 Discussion with concerned staff of the bank.
 CHAPTER 3

BANK PROFILE
SBI card lunched in October 1998 by the state Bank of India and GE capital.
Incorporate as SBI cards and payment Services Private Limited (SBICPSPL), SBI Card is
headquartered in Gurgaon, Haryana.

In December 2017, State Bank Of India and The Carlyle group acquired GE
capital’s stack in the joint venture. SBI holds 74% while Carlyle holds 26% in the joint venture.

The aim of SBI card is to offer Indian consumers access to a wide range of world–
class, value-added, payment product and services. Our endeavor is to simplify the lives of our
customers, employees and other important stakeholders.

Our innovative products and services along with our responsible corporate
citizenship practice from the framework of delivering on this promise.

Within a short span of 10 months, we achieved a credit card customer base of 1

lakh. We entered the ‘1 million card club’ in 2002 and crossed the 2 million card base in 2005.

Today with over 7 million credit card customers, we are the second largest credit
card issuer in the country.

State Bank of India (SBI) is an India multinational, public sector banking and
financial services statutory body. It is a government corporation statutory body headquartered
in Mumbai, Maharashtra. SBI is ranked as 216th in the fortune global 500 list of the world’s
biggest corporations of 2018. It is the largest bank in India with a 23% market share in assets,
besides a share of one-fourth of the total loan and deposits market.

HISTORY OF THE BANK:

The word ‘bank’ is derived from the word ‘bancus’ or ‘banque’ that is French.

There was other of the opinion that the word ‘bank’ is originally derived from
the German word ‘back’ meaning joint for which was Italianized into ‘banco’. But whatever be
the origin of the word bank as Prof.Ramchandra Rao says, “It would trace the history of banking
in Europe from middle ages”.

Generally, banks do the business of money they take deposits of moneys from
client and give loan to the person who has need of money. But in this age, for the convenience
of customer, banks provides some other services to their customer such as bankers cheque,
overdraft, internet banking, ATM facility, paying of bills, credit card , telegraphic transfer,
insurance, demat etc.

For a people, it is difficult to keep a very big amount of money in his house safely.
So, people save their money to bank. Bank gives loan to the person who has need of money and
gets higher interest on it then the interest of deposit. The margin between the interest of loan
and interest of deposit is the income of the bank.

ORIGIN OF STATE BANK OF INDIA

The origin of the State Bank Of India goes back to the first decade of nineteenth
century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years
later the bank received its charter and was re-designed as a the Bank of Bengal (2 January
1809). A unique institution, it was the first joint-stock (15 April 1840) and the Bank of Madras (1
July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern
banking in India till their amalgamation as the imperial Bank of India on 27 January 1921.

Establishment:
The establishment of the Bank of Bengal marked the advent of limited liability, joint-
stock banking in India. So was the association in banking, viz. the decision to allow the Bank of
Bengal to issue notes, which would be accepted for payment of public revenues within a
restricted geographical area. This right of note issue was very valuable for the those three
presidency banks. It meant an accretion to the capital of the banks, a capital on which the
proprietors did not have to pay any interest. The concept of deposit banking was also an
innovation because the practice of accepting money for safe keeping (and in some cases, even
investment on behalf of the client) by the indigenous bankers had not spread as a general habit
in most parts of India. But, for a long time, and especially up to the time that the three
presidency banks had a right of note issue, bank notes and government balances made up the
bulk of the invertible resource of the banks.

The three banks were governed by royal charters, which were revised from time to
time. Each charter provided for a share capital, four-fifth of which were privately subscribed
and the rest owned by the provincial government. The members of the board of directors,
which managed the affairs of each bank, were mostly proprietary directors representing the
large European managing agency houses in India. The rest were government nominees,
invariably civil servants, one of whom was elected as the president of the board.
Business:

 The business of the bank was initially confined to discounting of bills of exchange
or other negotiable private securities, keeping cash accounts and receiving deposits and
issuing and circulating cash notes. Loans were restricted to Rs. One lakh and the period
of accommodation confined to there months only. The security for such loans was
public securities, commonly called company’s paper, bullion, treasure, plate, jewels, or
goods, ‘not of a perishable nature’ and no interest could be charged beyond a rate of
twelve percent. Loans against goods like opium , indigo, salt woollens, cotton, cotton
piece goods, mule twist and silk goods were alsop granted but such finance by way of
cash credits gained momentum only from the third decade of the nineteenth century.
All commodities, including tea, sugar and jute, which began to be financed later, were
either pledged or hypothecated to the bank. Demand promissory notes were signed by
the borrower in favor of the guarantor, which was in turn endorsed to the bank. Lending
against shares of the banks or on the mortgage of houses, land or other real property
was, however, forbidden.

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

Major changes in the conditions:

A major change in the conditions of operations of the Bank of Bengal, Bombay and Madras
occurred after 1860. With the passing of the paper currency act of 1861, the right of note
issue of the presidency banks was abolished and the government of India assumed from 1st
March 1862 the sole power of issuing paper currently within British India. The task of
management and circulation of the new currency notes was conferred on the presidency banks
and the government under took to transfer the Treasury balances to the at places where the
banks would open branches. None of three banks had till then any branches (except the also
attempt and that too a short- lived one by the Bank of Bengal Mirzapore in 1839) although the
free use of government. Treasury balances at places where they would open branches, they
embarked on branch expansion at a rapid pace. B y 1876, the branches, agencies and
sub-agencies of the three presidency banks covered most of the major parts and many of the
inland trade centres in India While the Bank of Bengal had eighteen branches including its head
office, seasonal branches and sub-agencies, that Bank of Bombay and Madras had fifteen each.
First Five Year Plan:
In 1951, when the First Five Year Plan was launched, the development of rural India was give
the highest priority. The commercial banks of the country including the Imperial Bank Of India
had till then confined their operation to the urban sector and were not equipped to respond to
the emergent needs of economic regeneration of the rural areas. In order, therefore, to serve
the economy in general and the rural sector in particular, the All India Rural credit survey
committee recommended the creation of state-partnered and state-sponsored bank by taking
over the Imperial Bank Of India and integrating with it; the former state-owned or state-
associate banks. An Act was accordingly passed in parliament in May 1955 and the state bank of
India was constituted on 1 July 1955. More then a quarter of the resource of the Indian banking
system thus passed under the direct control of the state. Later the state bank of India
(subsidiary banks) act was passed in 1959, enabling the state bank of India to take over eight
former state-associated banks as its subsidiaries (later named associates).

The state bank of India was born with a new sense of social purpose aided by the 480 offices
comprising branches, sub offices and three Local Head Offices inherited from the imperial Bank.
The concept of banking as mere repositories of the community’s saving and lenders to
creditworthy parties was soon to give way to the concept of purposeful banking sub servicing
the growing and diversified financial needs of planning economic development. The State Bank
Of India was destined to act as the pacesetter in this respect and lead the India banking system
into the exciting field of national development.

All SBI branches and administrative offices throughout the country sponsor and particular in
large number of welfare activities and social cause. SBI Business is more then banking because
the bank has touch the lives of people anywhere in many ways. SBI commitment to nation-
building complete and comprehensive.

State Bank Of India (SBI) is the largest public sector bank in India. The has played a pivotal role
in establishing the organized banking sector in India by offering a wide range of services to
individuals was well as businesses.

Vision Of State Bank Of India:

 My SBI,
 My customer first.
 My SBI, First in customer satisfaction.

Mission

 SBI will be prompt, polite and with our customer.

  SBI will speak the language of young India.
 SBI create products and services that help our customers achieve their goals
 SBI will go beyond the call of duty to make their customers feel valued.
 SBI will offer excellence in services to those abroad as much as they do to those in India.
 SBI will imbibe state-of-the-art technology to drive excellence.

Values:

 SBI will always be honest, transparent and ethical.

 SBI will respect their customer and fellow associates.
 SBI be knowledge driven.
 SBI will learn and they will share our learning.
 SBI will never take the easy way out.
 SBI will do everything and contribute to the community they work in.
 SBI will nurture pride in India.

SBI Group Structure:

Non-Banking Subsidiaries\ Joint Ventures:

 SBI Capital Market Limited

 SBI CAP Securities Limited
 SBI CAP Ventures Limited
 SBI CAP (UK Limited)
 SBI CAP Trustees co. Limited
 SBI CAP (Singapore Limited)
 SBI Mutual Fund Trustee Company Private Limited
 SBI Global Factor Limited
 SBI Cards and payment Services Private Limited
 SBI Life Insurance Company Limited
 SBI General Insurance Company Limited
 SBI Foundation

Recent awards and recognition:

 SBI was ranked 232nd in the Fortune Global 500 ranking of the world’s biggest
corporations for the year 2016.
  SBI was 50th most trusted brand in India as per the Branch Trust Report 2013, an annual
study conducted by Trust Research Advisory, a brand analytics company subsequently,
in the Brand Trust Report 2014, SBI finished as India’s 19th brand in India.

State Bank Of India (SBI) Competitors:

Below are the top 6 state Bank of India (SBI) competitors:

1. ICICI Bank
2. Andhra Bank
3. HDFC Bank
4. Axis Bank
5. Bank of Baroda

SBI Products and Services:

SBI offers:-

 Working capital finance

 Project Finance
 Deferred Payment Guarantees
 Corporate Term Loans
 Structure Financing
 Dealer Financing
 Equipment Leasing
 Loan Syndication
 Financing India Firm Overseas Subsidiaries or JVs
 Construction Equipment Loan

Strength of State Bank of India:

 Largest commercial bank in the country with presence in all time zones of the world.
 Macroeconomic proxy for the India Economy.
 Has emerged as a Financial Services Supermarket.
 Group holds more then 25 percent market shear in deposits and advances.
 Large base of skilled manpower.
 SBI Group has more then 115 million customers-Every tenth India is a customer.

Principal competitor:
 ICICI Bank, Bank of Baroda; Canara Bank; Punjab National Bank; Bank of India; Union Bank of
India; Central Bank of India; HDFC Bank; Oriental Bank of Commerce.

Services offered by the SBI Bank:

 NRI services
 Personal Banking
 International Banking
 Agriculture\Rural
 Corporate Banking
 SME
 Government Business
 Domestic Treasury

Other Association Of State Bank Of India:

1. Clearing Corporation of India Ltd
2. Nepal SBI Bank Ltd
3. Bank Of Bhutan
4. UTI Asset Management Company Pvt Ltd

Employee Strength:
In 1995, when SBI came into existence, there were only 15000 employees working across the
country. But due to increase in volume of business and increase in number of branches, the
strength of employees has been considerably increase. By the end of the year 2015, there are
213238 employees in SBI are working in different parts of the country. Of this, 78540 are
officers and 94,455 are clerks the rest 23404 are sub staff.

Organisation Structure And Management:

The management of the State Bank vests in a Central Board of Directors which consists of;

 A Chairman and a Vice-Chairman appointed by the Central Government in consultation

with the Reserve Bank Of India.
 Two Managing Director appointed by the central Board of Directors with the approval
of the Central Government.
 Six Director to be elected in the prescribed manner by the shareholders other other
than the Reserve Bank.
 Eight directors to be nominated by the Central Government in consultation with the
Reserve Bank Of India to represent territorial and economic interests in such a manner
 that not less than two them have others have experience in commerce, industry,
banking and finance;
 One director to be nominated by the Central Government;
 Over director to be nominated by the Reserve Bank and;
 Two Directors to be appointed to represent the officers and the staff of the bank.

SBI Digital Products:

1. SBI Digital Village:

SBI Digital Village is a radical initiative by SBI to crate a cashless ecosystem
in each village and provide access to Government supported digital initiatives in education,
health, social security and agri-schemes, subsidies and benefits. Initially Digital villages under
this scheme in various state across the country by 2017.

Through Digital Village, bank can connect people by providing the Green
Channel Banking, ATM cards, Net banking, Mobile banking, Wallet banking, Self-Service
passbook printing machine, Cash deposit Machines, POS and Micro ATM at the Village location.
It is considered to be the part of Corporate social Responsibility (CSR) undertaking aiming to
improve the standard of people particularly in villages.

2. SBI Mingle:
State Bank Mingle is the social banking application of SBI which enable you to
perform basic banking activities through SBI official Facebook Page. To get started, users
need to access SBI Mingle from the official SBI Facebook Page. Once the access to the page
is established, users need to register and then Sign in, in that order.
SBI Mingle gives convenience of banking of banking on Facebook and Twitter
through an APP-based interface. Customer can do all transaction anytime, anywhere just by
logging in to their social media account.

3. State Bank Buddy:

State Bank Buddy is a mobile wallet application that allows to send or ask money from any
of your contact even if they do not have an SBI account. SBI Buddy is the best in market-
wallet with a unique blend of payment and banking service. State Bank Buddy has
comprehensive collaborations with merchant partners for unparalleled shopping and
payment experience.

Transaction limits on wallet with Nil KYC:

 Maximum balance at any point of time; 10000
  Top up through any channel per transaction; 100000
 Total reload in a month; 10000
 Total transaction (merchant transaction and fund transfers) Daily limit; 50000
 Total transaction (merchant transaction and transfers) Monthly limit; 100000
 Fund transfer (Transfer to account) per transaction limit; 5000
 Fund transfer (Transfer to account) Daily limit; 5000
 Fund transfer (Transfer to account) Monthly limit; 25000
 Cash out at ATM per transaction; presently not available.

4. State Bank Scribe:

SBI Scribe is a unique, first of its kind service. Just fill up the account opening form on the digital
board at the bank and open your account in a jiffy. Walk-in with your KYC document, walk-out
with an account number.

5. SBI DIGI Voucher:

SBI DIGI Voucher is a green initiative of SBI that gives you online access to various challans,
transaction slips and from through an APP. It saves valuable time by allowing you to pre-
complete transaction form online to get direct access to the teller counter.

6. SBI Video Statement:

SBI Video Statement is the initiative to view your account statement with spend analysis and
dashboards. It comes with a friendly audio narration for the visually challenged customers.

7. SBI Smart Watch:

SBI Smart Watch permit banking through your State Bank Smart Watch. A unique banking
experience that is in tune with the technology of the future.

Policy Statement:
State Bank of India committed to:

 Enhancing stakeholder’s value through value-driving engagement.

 Economic and social well-being of the society particular the fortunate and under-
privileged members of the society.
 Minimized the direct and indirect impact of its operation on the environment.

Social Responsibility:
  Adhere to highest standards of honest and ethical conduct, including proper and ethical
procedures in dealing with actual or apparent conflicts of interest between personal and
professional relationships. The Bank does not tolerate any proven instance of bribery
and corruption.
 Provide a workplace environment that is safe, hygienic, humane, harassment free and
which uphold the dignity of the employees.
 Provide equal opportunities to all employees and refrain from discrimination based on
caste, creed, gender, race and religion. Respect the employees right to freedom of
association.
 Provide timely remuneration to employees, conduct trainings and accord due
importance to work-life balance.
 Refrain from using child labour, forced or compulsory labour.
 Work toward stakeholder value creation by systematically engaging with them,
understanding their concerns and formulate strategies to address them. Special
emphasis would be given to the less fortunate and under-privileged members of society.
 Utilize the trade and industry chambers and associations for advocating public policy
formulation regarding country specific sustainable development issues.
 Make effort to understand the impact of the operations on the society and strive to
respond to the needs by utilizing the allocation resource to protect the interests of the
less fortunate and under-privileged member of the society. Employees are encouraged
to contribute to the social cause within the available means and interest.
 Minimize the overall environment footprint through reduction in consumption of
natural resources, pollution prevention, waste minimization, using renewable energy
etc.

Economic Responsibility:

 Provide complete factual information on products and services to protect the interest of
customers.
 Accord preference to project/product which accrue more environment/social benefits.
 Ensure customer privacy.
 Ensure compliance with applicable standards/guidelines while advertisement and make
efforts to improve the finance literacy of the stakeholders.

SBI SWOT Analysis:

Below is the Strengths, weaknesses, opportunities and threats (SWOT) Analysis of State Bank of
India (SBI). Strengths are:
  SBI is the biggest bank in India with more than 14000 branches.
 State Bank of India (SBI) has a separate act for itself. Thus, a special privilege for the
bank.
 Biggest branch network in the country means good research.
 First public sector to move to CBS.
 SBI has close to 300000 people employed with it.
 Backing of the Govt. of India a huge boost to the bank.
 State Bank of India offers services like consumer banking, enterprise banking, insurance
etc.
 It has a good brand visibility and awareness due to extensive marketing.
 SBI has its presence in more then 35 countries with close to 200 offices.

Here are the weaknesses in the State Bank of India (SBI) SWOT Analysis:

 Immense competition means limited market shear growth for SBI.

 International presence is less as compared to global bank.


Following are the opportunities in State Bank of India (SBI) SWOT Analysis:

 Pool in talent to replace the going top management to serve the next generation.
 State Bank of India (SBI) can make better use of CRM, technology and online space.
 Expansive into rural areas too boosts its business. With focus on India going cashless,
the bank can dominate the market with its extensive reach.

The threats in the SWOT Analysis of State Bank of India (SBI) are as mentioned below:

 Consolidation among private banks can reduce market share for SBI.
 New bank licenses by RBI can affect operations.
 Foreign bank that have sophisticated products.
 SBI operations are often disrupted by slow government decisions and Taoism.

Chapter 2

THEORETIOCAL BACKROUND
Micro Level Management of SBI Credit Card and impact on their consumer income

Definition:
A micro level management of SBI credit card is a credit-token within the meaning of section
14(1), consumer credit Act 1974 of the UK which define a credit-token as a card, cheque,
voucher, coupon, stamp, from booklet or other document or thing given to an individual by a
person carrying on a consumer credit business. Any activities involved in accepting safeguarding
money owned by other individuals and entities, and then lending out this money in order to
earn a profit.

Meaning:
Credit card the plastic money, as it is popularly referred to , was slow to enter the India market
because of the high sentimental value that India consumers attach to hard cash. Prevalence of
small value transaction . The various ways in which a bank can help customer, such as operating
accounts, making transfers. Paying standing orders and selling foreign currency.

Micro credit:

SHG-BANK CRFEDIT LINKING:

SBI has actively participated in SHG-Bank Credit Linkage programme since its inception in 1992
as a pilot project of NABARD. Since then, the bank has made a steady progress in financing
SHGs. Bank market share in SHG Credit Linkage is 23.65%(March 2018) among public sector
banks.

As on 31st March 2018, Bank’s lending to SHGs is Rs.10551 crore to 5.91 lac SHGs, of which 91%

Are woman SHGs.

Regional Rural Banks:

The RRBs were established in 1975 under the provisions of the ordinance promulgated on 26 th
September, 1975 and Regional Rural Banks Act, 1976 with a view to developing the rural
economy by providing , for the purpose of development of agriculture, trade, commerce,
industry, and other productive activities in the rural areas, credit and other facilities,
particularly to small and marginal farmers, agricultural labourers, artisans and small
entrepreneurs, and for matters connected there with and incidental there to.

Financial Inclusion:

 Pradhan Mantri Jan-Dhan Yojana

 Pradhan Mantri Jan-Dhan Yojana-FAQs
 PMJDY Gallery
a) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
  Rules of PMJJBY
 PMJJBY FAQs
 Consent Certificate of Declaration From PMJJBY
 PMJJBY Certificate of Insurance and Claim Status

b) Pradhan Mantri Suraksha Bima Yojana (PMSBY)

 Rules of PMJJBY
 PMJJBY FAQs
 Consent Certificate of Declaration From PMJJBY
 Consent Certificate of Declaration From PMJJBY (Bilingual)

Aadhaar seeding:

Linking Aadhaar number to the bank account

SBI provides you with multiple channels to link your Aadhaar number to existing account. Pick
any one as per your convenience.

SBI Anywhere App

 Login to SBI anywhere app

 Click on “Requests”
 Click on “Aadhaar”
 Click on “Aadhaar Linking”
 Select your CIF from the drop down list
 Enter your Aadhaar number
 Select T and C and submit
 You will receive an SMS on your registered mobile number regarding the status of
seeding

SBI Branch

 Visit your nearest SBI branch

 Carry a copy of your Aadhaar number or e-Aadhaar
 Fill in a Letter of Request
 Submit the above with the Xerox copy of Aadhaar letter
 After necessary verification, the linking will be done by the branch
 You will receive an SMS on your registered mobile number regarding the status of
seeding
 3. NRI Services:

NRI accounts and deposits

You can apply for NRE/NRO account through our online portal and post the document to us
for processing. As an NRI, you can also enjoy internet banking facilities and operate your
accounts from anywhere in the world through our award winning online SBI web portal and
SBI Anywhere mobile app.

NRI Investment Products

Should you wish to invest in mutual funds, equity, portfolio investment schemes or take a
life insurance, our subsidiaries will ensure that your needs are met seamlessly through their
dedicated NRI teams.

SBI NRI Services-Loans

Bank offer several loan product to help you buy a home car for your family back in India and
also loan against your deposit with us to tide over unforeseen financial needs. You can leverage
your future income, existing assets, and deposit as security for the loan.

Bank values

 Trust
 Transparency
 Integrity
 Excellence

Value to Customers

 Wide product range

 Interest calculation on daily reducing balance
 Overdraft facility available
 Low interest rates
 Low processing fees
 No hidden costs
 No pre-payment penalty

SBI NRI Services-Car Loan

Eligibility

 NRI will be an Applicant(borrower), with a Resident Indian as a Guarantor

  Both Applicant and Guarantor, should be of an age between 21-65 years
 Loan must be repaid before the applicant reaches the age of 65

NRI applicant (borrower)should fulfil the following conditions:

 Posses a valid India passport

 Maintains a steady source of income
 Employed abroad for al least two years
 Hold a valid job contract/work permit

SBI NRI service-Loan Against Deposit

Overview

 Loan can be taken to carry any business activities, for acquiring a flat/house in India or
for meeting emergency financial requirements. It cannot be granted for re-lending or
carrying or carrying out agricultural/plantation activities or for investment in real estate
business. Loan amount cannot be repatriated abroad.
 It can be availed in India rupees or foreign currency against the security of
NRE/NRO/FCR (B) deposit.
 Loan will be given to depositor only.
 Interest is charged at monthly intervals in both India rupee and Foreign currency loan.
 Premature withdrawal of underlying.
 NRE/FCNR deposit is not permissible.
 NRO deposit is permissible but outstanding principal and Interest will be settle first.

SBI NRI Service-Online OD Against Deposit

Create an overdraft (OD) account against your existing NRE/NRO deposit through internet
banking. Features of this facility are mentioned below:

a. Eligibility:
Available to customer having NRE/NRO fixed deposits (TDR/STR/e TDR/e STDR) in single
name (holder) only and with a minimum residual period of 6 months. Deposit with joint
holders are not eligible under the scheme. TDR/STDR not opened through internet
banking facility have to be mapped to banking for availing this facility.
b. Permission limit:
The limit of overdraft against deposits will be as per following table, OD limit cannot be
changed by the customer
TCR/e TDR:- 75% of the facevalue of deposit
STDR/e STDR:- 90% of the facevalue of the deposit
c. Loan amount:

As per the following:

a. Minimum : Rs 25000
b. Maximum : Rs 5.00 crores

D. Rate of interest

1.00% above the interest payment on the fixed deposit.

e. Cut-off time:

The online opening of OD facility will be available between 8:00 to 20:00 hrs IST.

NRI Investments:

India is one of the fastest growing economies and is a lucrative investment destination. The
country has undergone a paradigm shift. There have been several encouraging development in
the economy and government policy, there by improving outlook on business and industry.

To help you reap the benefits of India’s growth story, bank offers diversified investment
opportunities to suit your risk appetite and future needs.

Investment type:

a. Mutual Fund
b. Insurance
c. Equity Trading
d. Portfolio Investment Scheme

Mutual Fund:

Whatever your investment need, SBI Mutual Fund has tailor made solution to suit your risk
capacity, investment tenor and liquidity options.

Insurance:

The essence of insurances to protect your family from the uncertainities of life . SBI offers life
insurance plans to meet your protection and investment needs at one go. Investment in
insurance product also provide tax benefits tax benefits. In addition , if you pay your premiums
through our remittance product are by debiting an NRE account, the claim amounts can be
repatriated in proportion to the premiums received.

Equity Trading:
Invest online in Equities, Derivatives, IPOs, and Mutual fund with the comfort of your home or
office through bank 4-in-1 account consisting of:

1. NRE saving bank account

2. NRE portfolio investment scheme(PIS) account
3. Demat account
4. Trading account

Portfolio investment scheme:

SBI’s portfolio investment scheme enable you to buy and sell shares, debentures of Indian
companies on the Indian stock market . Portfolio investment services are offered in selected
branches of State Bank of India. The branch will grant you the permission to invest in stock
market and all sale or purchase transaction will be routed through this branch .SBI also offers
the convenience of holding and trading in shares online, through its demat services.

Remittances:

Wherever you may be in the world, remitting money of India could not be made easier. Remit
fund to your own account or account of your loved ones in India through our wide array of
remittances services. These remittances can be originated from different time zone/ country in
multiple currencies as mentioned below:

International banking:

An ideas business partner for individual and institution across the globe State Bank of India’s
dedicated and skilled team of professionals enables you to meet your business and personal
need by provide comprehensive International banking products and financial solutions.

 Correspondent Banking:
As you correspondent Banking partner bank offer you full range of bank business
expertise, service offering and experience of over 90 years, with valued relationaships
with over 1250 leading banks across 112 countries.
 Global Trade Services:
At SBI, with domain expertise and global capacity can facilitate your growth plans in
ever evolving global markets.
 Retail Banking:
Send money Internationally through SBI express/ instant transfer, protect your saving
through bank secure and competitive deposit accounts, and fulfil your dreams and your
aspirations through banks value added loan products.
Modern Services:
 Listing on below are the some of the services provided by SBI :
 Broking Service:
At present the investors can bye/sell shares at both NSE and BSE through the retail
broking centres in the cash market. The bank furnish here under the location of these
centers with full particular of the contact persons. All investment can approach these
branches for their broking needs.
 Internet Banking:
The Internet Banking portal of SBI bank, enable its retail banking customers to operate
their accounts from anywhere, anytime, removing the restriction imposed by geography
and time.
 E-Pay:
Bill payment module in online SBI website let you pay your telephone, mobile,
electricity, insurance credit card bills electronically. If your biller presents bills online,
you can also give autopay instruction and bank will pay the bill as and when falls due.
 E-Rail:
The facility has been lunched 1 sept. 2003 in association with IRCTC. The scheme
facilities booking of Railways Ticket Online .
 MICR Services:
In MICR Technology the information is printed on the instrument with a special type of
ink which is made up of magnetic material. On insertion of the instrument in the
machine, the printed information is ready by the machine. MICR system is beneficial as
it minimizes changes of error, clearing of cheques becomes easy and transfer of fund
becomes faster in order to facilitate operation.

CHAPTER 5

Finding, Suggestions, and Conclusion

FINDINGS:

 From the survey it is found that majority of the respondents i.e. 82% are having the
income of less then 100000.
 90% of the respondents have account for the 2% respondent have current account and
other remaining 4% and 4% respondents have NRI account and Fixed deposit account.
 Most of the customer has opened for the excellent service provided by the bank.
 38% of the respondents felt that they get prompt services when they visit to branch.
 From the survey it is found that 88% of the respondents are able use online banking.
 54% of the respondents felt that the procedure to open an account with the bank was
difficult.
 From the survey it is found that the 78% of the respondents are satisfied with the online
banking.
 From the survey it is found that 68% of the respondents are said bank charges
unnecessarily for not maintaining minimum balance in the account.
 54% of the respondents are visiting branch to make the deposit.
 48% of the respondents felt that services of the bank are good.

SUGGESTION:

After studying the perception of 50 respondents of State Bank of India, it would be helpful
to give some suggestion

 Bank should co-operate with the rural people, students and senior citizens.
 Bank should provide more loans to students, farmers, small enterprisers and
industrialist.
 In certain cases it is necessary that loan recovery period be enhanced.
 Bank should services in time.
 Bank should improve technology and give more and more information about the new
loans scheme.
 Transaction should make fast.
 Bank should increase rate of interest on deposit and decrease the rate of interest on
loans.
 Bank should pay more attention on giving updates and should increase the level of
services providing.

CONCLUSION:

The State bank has been highly successful in its objectives in opening a network of branches
in rural and semi-urban areas. It has helped in developing agriculture, small industries and
business, and uplifting the weaker sections and priority sectors through credit facilities. It
operates a number of customer oriented services, engages in export promotion and
successfully carries out overseas operations.

In this study I found that the bond of SBI with its customer is very strong, because SBI
mainly focuses on retaining their customers. The bank should focus on semi urban and rural
market. The bank should try to increase the of technology like mobile and net banking
among its customers.