EXECUTIVE SUMMARY the Indian Economic is Growing. There Are Various

EXECUTIVE SUMMARY

The Indian economic is growing. There are various factors contributing for the

development of economy. One of the industries which have revolutnize the economy is

banking. Change in the IT & faster growth has changed the banking operations to a great

extent. Banking operations have led to a great development of economy & meeting

customers needs.

Among various sectors that bank is involved, retail banking is one area that has changed

gradually in meeting dynamic needs of customers. I have undertaken my study in area of

retail banking in order to get the basic understanding of banking operations especially

retail banking. As retail banking activity has been changing & very completive in nature

in meeting needs of customers. State bank has been focus on retail banking. The idea of

undertaking this project is to understand the customer’s present expectation from bank &

even to know their perception about retail banking in this competitive banking scenario.

The project title is Study and Awareness Level of Retail Banking (Personal

Banking) Products of SBI Bank, Hubli.

OBJECTIVES:

To study retail banking Products State Bank Of India, Hubli.

To understand perception of customers about retail banking Products in State

Bank Of India, Hubli.

To know the benefits available by the customers from SBI retail banking

products.

The sample size is 100 and sample units were individuals. The sample area is

limited to Hubli city. The Statistical Tool used is SPSS and Bar diagrams are used for

analyzing and interpretation.

KLES’s Institute of Management Studies and Research

1

Findings: During the project there were some of the findings, which are as follows:

1) The SBI customers are satisfied for using the SBI Retail products of SBI Bank and

are very much influenced by the factors like convenience, rate of interest and

services.

2) The project could help me in understanding different types of retail products and

their information.

3) The perception of the SBI customer relating to retail banking products provided by

SBI bank.

Limitations:

1) The sample size is 100 and findings are based on these samples.

2) The study was restricted to 4 months.

3) There were some difficulties when asked for personal details like cell numbers were

asked.


2

HISTORY OF BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a healthy

economy. The banking system of India should not only be hassle free but it should be

able to meet new challenges posed by the technology and any other external and internal

factors.

For the past three decades India’s banking system has several outstanding

achievements to its credit. The most striking is its extensive reach. It is no longer

confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system

has reached even to the remote corners of the country. This is one of the main reasons for

India’s growth. The government’s regular policy for Indian bank since 1969 has paid rich

dividends with the nationalisation of 14 major private banks of India.

The first bank in India, though conservative, was established in 1786. From 1786 till

today, the journey of Indian Banking System can be segregated into three distinct phases.

They are as mentioned below:

Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks and up to 1991 prior to Indian

Banking sector Reforms.

New phase of Indian Banking System with the advent of Indian

Financial & Banking

Sector Reforms after 1991.


3

Phase I-

The General Bank of India was set up in the year 1786. Next came Bank of

Hindustan and Bengal Bank. The East India Company established Bank of Bengal

(1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and

called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial

Bank of India was established which started as private shareholders banks, mostly

European shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians,

Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between

1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank,

Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced

periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly

small. To streamline the functioning and activities of banks, mostly small. To streamline

the functioning and activities of commercial banks, the Government of India came up

with The Banking Companies Act, 1949 which was later changed to Banking Regulation

Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was

vested with extensive powers for the supervision of banking in India as the Central

Banking System.

During those days public has lesser confidence in the banks. As an aftermath

deposit mobilisation was slow. Abreast of it the savings bank facility provided by the


4

Postal department was comparatively safer. Moreover, funds were largely given to

traders.

Phase II-

Government took major steps in this Indian Banking Sector Reform after

independence. In 1955, it nationalised Imperial Bank of India with extensive banking

facilities on a large scale specially in rural and semi-urban areas. It formed State Bank of

India to act as the principal agent of RBI and to handle banking transactions of the Union

and state government all over the country.

Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on

19th July 1969, major process of nationalisation was carried out. It was the effort of the

then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the

country were nationalized.Second phase of nationalisation Indian Banking Sector Reform

was carried out in 1980 with seven more banks. This step brought 80% of the banking

segment in India under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking

Institutions in the Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalisation of State Bank of India.

1959: Nationalisation of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalisation of 14 major banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.


5

1980: Nationalisation of seven banks with deposits over 200 cr.

Banking in the sunshine of Government ownership gave the public implicit faith

and immense confidence about the sustainability of these institutions.

Phase III-

This phase has introduced many more products and facilities in the banking sector

in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee

was set up by his name, which worked for the Liberalization of Banking Practices.

The country is flooded with foreign banks and their ATM stations. Efforts are

being put to give a satisfactory service to customers. Phone banking and net banking is

introduced. The entire system became more convenient and swift. Time is given more

importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered

from any crisis triggered by any external macroeconomics shock as other East Asian

Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves

are high, the capital account is not yet fully convertible, and banks and their customers

have limited foreign exchange exposure.

Banking in India originated in the first decade of 18 th century with The General

Bank Of India coming into existence in 1786. This was followed by Bank of Hindustan.

Both these banks are now defunct. The oldest bank in existence in India is the State Bank

Of India being established as “The Bank Of Calcutta” in Calcutta in June 1806. Couple of

Decades later, foreign Banks like HSBC and Credit Lyonnais Started their Calcutta


6

operations in 1850s. At that point of time, Calcutta was the most active trading port,

mainly due to the trade of British Empire and due to which banking actively took roots

there and prospered. The first fully Indian owned bank was the Allahabad Bank set up in

1865.

By 1900, the market expanded with the establishment of banks like Punjab National

Bank in 1895 in Lahore; Bank of India in 1906 in Mumbai-both of which were founded

under private ownership. Indian Banking Sector was formally regulated by Reserve Bank

Of India from 1935. After India’s independence in 1947, the Reserve Bank was

nationalised and given broader powers.

SBI Group-

The Bank of Bengal, which later became the State Bank of India. State Bank of

India with its seven associate banks commands the largest banking resources in India.

Nationalisation-

The next significant milestone in Indian Banking happened in late 1960s when the

then Indira Gandhi government nationalized on 19th July 1949, 14 major commercial

Indian banks followed by nationalisation of 6 more commercial Indian banks in 1980.

The stated reason for the nationalisation was more control of credit delivery. After

this, until 1990s, the nationalised banks grew at a leisurely pace of around 4% also called

as the Hindu growth of the Indian economy.


7

After the amalgamation of New Bank of India with Punjab National Bank,

currently there are 19 nationalised banks in India.

Liberalization-

In the early 1990’s the then Narasimha rao government embarked a policy of

liberalization and gave licences to a small number of private banks, which came to be

known as New generation tech-savvy banks, which included banks like ICICI and HDFC.

This move along with the rapid growth of the economy of India, kick started the banking

sector in India, which has seen rapid growth with strong contribution from all the sectors

of banks, namely Government banks, Private Banks and Foreign banks. However there

had been a few hiccups for these new banks with many either being taken over like

Global Trust Bank while others like Centurion Bank have found the going tough.

The next stage for the Indian Banking has been set up with the proposed relaxation

in the norms for Foreign Direct Investment, where all Foreign Investors in Banks may be

given voting rights which could exceed the present cap of 10%, at present it has gone up

to 49% with some restrictions.


8

The new policy shook the Banking sector in India completely. Bankers, till this

time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of

functioning. The new wave ushered in a modern outlook and tech-savvy methods of

working for traditional banks. All this led to the retail boom in India. People not just

demanded more from their banks but also received more.

CURRENT SCENARIO-

Currently overall, banking in India is considered as fairly mature in terms of supply,

product range and reach-even though reach in rural India still remains a challenge for the

private sector and foreign banks. Even in terms of quality of assets and capital adequacy,

Indian banks are considered to have clean, strong and transparent balance sheets-as

compared to other banks in comparable economies in its region. The Reserve Bank of

India is an autonomous body, with minimal pressure from the government. The stated

policy of the Bank on the Indian Rupee is to manage volatility-without any stated

exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-

especially in its services sector, the demand for banking services-especially retail

banking, mortgages and investment services are expected to be strong. M&As, takeovers,

asset sales and much more action (as it is unraveling in China) will happen on this front

in India.


9

http://en.wikipedia.org/wiki/India

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its

stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an

investor has been allowed to hold more than 5% in a private sector bank since the RBI

announced norms in 2005 that any stake exceeding 5% in the private sector banks would

need to be vetted by them.

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector

banks (that is with the Government of India holding a stake), 29 private banks (these do

not have government stake; they may be publicly listed and traded on stock exchanges)

and 31 foreign banks. They have a combined network of over 53,000 branches and

17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector

banks hold over 75 percent of total assets of the banking industry, with the private and

foreign banks holding 18.2% and 6.5% respectively.

Banking in India

1 Central Bank Reserve Bank of India

2 Nationalised Banks

State Bank of India, Allahabad Bank, Andhra Bank,

Bank of Baroda, Bank of India, Bank of

Maharastra,Canara Bank, Central Bank of India,

Corporation Bank, Dena Bank, Indian Bank, Indian

overseas Bank,Oriental Bank of Commerce, Punjab and

Sind Bank, Punjab National Bank, Syndicate Bank,

Union Bank of India, United Bank of India, UCO

Bank,and Vijaya Bank.


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http://en.wikipedia.org/wiki/Automated_teller_machine

http://en.wikipedia.org/wiki/Government_of_India

3 Private Banks

Bank of Rajastan, Bharath overseas Bank, Catholic

Syrian Bank, Centurion Bank of Punjab, City Union

Bank, Development Credit Bank, Dhanalaxmi Bank,

Federal Bank, Ganesh Bank of Kurundwad, HDFC

Bank, ICICI Bank, IDBI, IndusInd Bank, ING Vysya

Bank, Jammu and Kashmir Bank, Karnataka Bank

Limited, Karur Vysya Bank, Kotek Mahindra Bank,

Lakshmivilas Bank, Lord Krishna Bank, Nainitak Bank,

Ratnakar Bank,Sangli Bank, SBI Commercial and

International Bank, South Indian Bank, Tamil Nadu

Merchantile Bank Ltd., United Western Bank, UTI

Bank, YES Bank.

Structure of Indian Banking-

Reserve Bank of India is the regulating body for the Indian Banking Industry. It is a mixture of Public sector, Private sector, Co-operative banks and foreign banks. The private sector banks are further spilt into old banks and new banks.

Reserve Bank of India

Scheduled Banks


11

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

impulse of quickened world communications and ingenious method of industrial and


12

Scheduled Commercial Banks

Public Sector Banks

Private Sector Banks

Foreign Banks

Regional Rural Banks

Nationalised Banks

SBI & its Associates

Old private sector Banks

New private sector Banks

Scheduled Co-operative Banks

Scheduled Urban co-operative

Bank

Scheduled State co-operative Banks

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.

ABOUT LOGO


13

http://upload.wikimedia.org/wikipedia/en/c/cc/SBI-logo.svg

THE PLACE TO SHARE THE NEWS ...……

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 Bank’s 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.


14

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

Team playing

ORGANISATION STRUCTURE

MANAGING DIRECTOR


15

CHIEF GENERAL MANAGER

G. M G.M G.M G.M G.M

(Operations) (C&B) (F&S) (I) & CVO (P&D)

Zonal officers Functional Heads

Regional officers

S.No Name of Director Sec. of SBI Act, 1955

1 Shri O.P. Bhatt 19(a)


16

Chairman

2 Shri T.S. Bhattacharya

MD & GE (CB)

19 (b)

3 Shri S.K. Bhattacharyya

MD & CC&RO

19(b)

4 Shri Suman Kumar Bery 19(c)

5 Dr. Ashok Jhunjhunwala 19(c)

6 Shri Ananta Chandra Kalita 19(ca)

7 Shri Amar Pal 19(cb)

8 Shri Piyush Goyal 19(d)

9 Dr. Deva Nand Balodhi 19(d)

10 Prof. Mohd. Salahuddin Ansari 19(d)

11 Shri Vinod Rai 19(e)

12 Smt. Shyamala Gopinath 19(f)


17

RETAIL BANKING SCENARIO

Retail banking includes a comprehensive range of financial products viz. deposit

products, residential mortgage loans, credit cards, auto finance, personal loans, consumer

durable loans, loans against equity shares, loans for subscribing to initial public

offers(IPO’s) ,debit cards, bill payment services, mutual funds, investment advisory

services. These products provide an opportunity for banks to diversify the asset portfolio

with high profitability and relatively low NPAs.The categorization of retail banking

segment and have identified it as a principal growth driver .They are slowly gaining

market share in the retail space.

For several years, banks viewed consumer loans with skepticism. Commercial

loans dominated the banks portfolio as they generate high net yields with low credit risk.

Consumer loans in contrast involved smaller amounts, large staff to handle accounts and

high default rates. They were considered substandard by the banks. Even the regulators

across the globe have not encouraged consumer finance till very recently. However, over

the past few years, fierce competition among the banks lowered the spreads and

profitability on commercial loans. With deregulation and increase in consumer loan rates,

the risk-adjusted returns in retail sector have exceeded the returns on commercial loans.


18

Competition, securitization, automation and regulation are the major forces that are

driving and shaping consumer lending.Net banking, phone banking, mobile banking,

ATM’s and bill payments are the new facilities that banks are using not only to lure

customers but also to help them reduce their total operating costs. In India, commercial

banks dominate the market for consumer credit. Even nationalized banks, which control

more than two-thirds of the banking business in the country, are tapping retail lending

with great vigor. The enormous competition has led to innovative retail banking products

that are extremely customer-friendly and plug the loopholes in the existing similar

products.

The growth in retail banking has been facilitated by the growth in banking technology

and automation of banking processes that enable extension of reach and rationalization of

costs. ATM’s have emerged as an alternative banking channel, which facilitate low cost

transaction vis-à-vis traditional branches. It also has the advantage of reducing the branch

traffic and enable banks with small networks to upset the traditional disadvantages by

increasing their reach and spread.

The retail banking industry is diverse and competitive. In addition, to checking and

savings account services, banks offer brokerage and insurance capabilities to manage all

aspects of a customer’s financial portfolio. Attracting profitable customers from

competitors is essential for long-term success. Retail banking has both pros and cons. In

the present situation, the bankers have very little option, but to chant ‘retail mantra’.

Banks today face complex challenges on multiple fronts. Customer expectations are

higher then ever, with growing demand for more rapid service delivery and more flexible,

personalized interaction.


19

Retail Banking in India

The stagnation in Indian economy has resulted in poor credit absorption both for long

term funding to big-ticket projects as well as working capital. The slow down could be

attributed to lack of credit off-take by the industrial sector even as food credit continued

to search. This has resulted in limited lending opportunities to banks. Major portion of the

loans raised by corporates were to replace the existing high cost funding and is more in

the nature of arbitraging on the interest rates with various banks. The loan products to

corporate with strong financial are now almost linked to prices of government securities-

or mark up over government paper. More over, big corporates are bypassing banks and

rising money through the debt market and commercial papers, which are cheaper than

bank credit. Therefore banks are being forced to look at the mid corporates.

The tough macro economic environment, increasing risk profile and low yield indicate

that corporate banking has entered the maturity face. To survive and prosper amid the

rapid changes that continue to redefine financial services market place ,banks hitherto

concentrating on corporate borrowers are embarking now on a strategy driven by retail

banking and fee based income in order to maintain asset growth and profitability. The

ratio of non interest income to total funds has already increased for some banks.

The ratio of retail credit to net credit at the global level is around 5%.In India it is

interesting to note that this ratio is over 10% as on 31st march 2002 with the economic

reforms set in motion, the country is already rated as a major hub for economic

development. Increases in per capita income, changes in life style and growing

urbanization have made the Indian population raise from oblivion and resurge in a


20

modern era. The policy of save and spend is gradually giving way to spend and save

concept.

For banks, retail segment is the principle growth driver as they are gaining slowly gaining

market share in the retail space. The retail asset portfolio of banks has grown

substantially during 2001-2002.Foreign banks are also securitizing vehicle loans to raise

off-balance sheet resources and reducing the over all cost of funding. For ex: Bank of

Muscat is taking over auto loans from other banks signaling a softer interest rate regime

for consumer finance and giving an indication to the intensifying competition in business.

The new bank like ICICI bank Ltd, HDFC bank Ltd... Etc are striving to position

themselves as one stop financial shops. These bank have tied up with computer training

companies computer manufacturers, internet services providers and portals for expanding

their net banking services and winding their customer base.

The race for market supremacy is compelling banks in India to adopt the largest

technology on the internet in a bid to capture new markets and customers. HDFC Bank

Ltd with its ‘Freedom the e-Age saving Account’ service, Citibank with ‘Suvidha’ and

ICICI Bank Ltd. With its ‘Mobile Commerce’ service have tied up with cell phone

operators to offer Mobile Banking to their customer. Under mobile banking services,

customers can scan their accounts to seek balance and payments status or instruct banks

to issue cheques, pay bills or deliver statements of accounts. It was estimated that by

2003, cellular phones will have become the premier internet access device, outselling

personal computers. Mobile banking will further minimize the need to visit a bank

branch.


21

The critical success factors of banks, which are aggressively moving in the retail

banking segment are wider distribution network, low cost of funding, low intermediation

(operating) costs, marketing capability, large product portfolio, cross-selling, proper

credit appraisal mechanism/risk assessment procedures, high service levels in terms of

faster loan processing and disbursement, flexible technology across banking platforms,

multi-distribution channels, strong brand presence and good recovery mechanism. These

success factors would ultimately transform into how well banks understand their

customers and how effective they are in meeting their new definition of access,

convenience and value.

Growth of Retail Industry

The income levels and employment opportunities for young persons have risen in the IT.

ITES and BPO fields where salaries are generally higher by about 20 to 30%. According

to the officials of Standard Chartered Bank, the number of young people in the age of 20

to 24 who join the workforce is around three million. With a large amount of disposable

income and no financial commitments towards the family, they form a major chunk of

customers for consumer durables and FMCG. Retail industry is the fastest growing

industry in India, whose growth is attributed to ideal breeding ground in the form of huge

market, rising income levels, surplus disposable income, increasing awareness due to

growth of advertisement and cable television channels and the entry of multinational

brands. It is estimated that the retail market is about Rs 9, 00,000 cr and growing at a rate

of 8.5% per annum. Based on market figures, it is estimated that the retailing industry

will grow from 2 to 10% in the next five years added to this is the fact that growth in


22

retail industry has increased employment opportunities in this field which in turn raises

the demand for retail and consumer goods.

SBI's Retail Banking

State Bank of India offers a wide range of services in the Personal Banking Segment

which are indexed here.

Click on each of them to access the details. Our products are designed with flexibility to

suit your personal requirements. Enjoy 24 hour facility through our ATMs - growing

speedily it has crossed the 5000 mark Watch this space for more details.

SBI Term Deposits SBI Loan For Pensioners

SBI Recurring Deposits Loan Against Mortgage Of Property

SBI Housing Loan Loan Against Shares & Debentures

SBI Car Loan Rent Plus Scheme

SBI Educational Loan Medi-Plus Scheme

SBI Personal Loan Rates Of Interest


23

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http://www.sbi.co.in/viewsection.jsp?id=0,1,20,119








http://www.sbi.co.in/viewsection.jsp?id=0,1,19,114,190



TERM DEPOSITS

Now you can earn a higher income on your surplus funds by investing those with us. We

provide security, trust and competitive rate of interest.

Flexibility in period of term deposit from 7 days to 10 years.

Affordable Low Minimum Deposit Amount: You can open a term deposit with SBI

for a nominal amount of Rs.1000/- only.

Please check our Interest Rates online or simply email through our Helpline.

Flexibility in choosing the amount you wish to invest and the maturity period.

Highlights

Safety - We understand the value of your hard earned money and continue to deliver on

our promise of safety and security over 200 years.

Liquidity

Loan /overdraft facility: You can avail a loan/overdraft against your deposit.SBI

provides you loan / overdraft upto 90% of your deposit amount at nominal cost.So you


24



continue to earn interest in your deposit and still can meet your urgent financial

requirements.

Premature Withdrawal

Interest to be charged on premature withdrawal of term deposits at 0.5% below the rate

applicable for the period deposit has remained with the Bank.

Transferability- Transfer of Term Deposits between our wide network of branches

without any charge.

Compounding / Flexible / Timely Payment of Interest - Under our Special Term

Deposit Scheme, interest accrues in your account and gets compounded quarterly.

Besides, we assure timely delivery of the proceeds of your deposit with interest, on

maturity. Flexibility of payment on maturity through Cash (subject to prevalent Income

Tax Act), Banker's Cheque, Credit in Savings Bank/Current account.

Term Deposits are available at all SBI Branches

Easy and convenient access of 24X7 information at SBI Internet Banking.

Nomination Facility - Available.

Tax Implications.

Tax Deductible at Source, as per Income Tax Act.

Automatic Renewals


25


There is no need for you to keep track of the maturity of your deposits. Your deposits

with us will be renewed automatically, post maturity. And you continue to earn interest

for same period as that of your matured deposit, at the interest rate prevailing at the time

of maturity. Automatic renewals take place where there are no standing instructions for

renewal.

Flexibility to convert your Special Term Deposit to Term Deposit and vice versa

You can convert your special Term Deposit to a Term Deposit to receive

monthly/quarterly interest payments to match your financial requirements.

You can also convert your Term Deposit to a Special Term Deposit, which

provides compounded rate of interest to multiply your money faster.

RECURRING DEPOSIT

Want to create a fund for your children's education or marriage or to buy a car or for a

dream holiday? Whatever may be your financial goals, through our Recurring Deposit

Scheme you can save a little every month so that at the time of need you have sufficient

funds to achieve your financial goals. Recurring Deposit provides you the element of

compulsion to save at high rates of interest applicable to Term Deposits along with

liquidity to access that savings any time. So set aside a small amount every month and

earn at compounded rates of interest.

Wide Choice in Period of Deposit


26

Flexibility in period of deposit with maturity ranging from 12 months to 120

months.

Low minimum monthly deposit amount.

You can start a Recurring Deposit with SBI for a monthly instalment of Rs.100/-

only.

SBI Term Deposit Rates Apply

Check out our Interest Rates Online or simply email through our Helpline

Choose the amount you wish to invest and the maturity period.

Highlights

Safety

We understand the value of your hard earned money and continue to deliver on

our promise of safety and security over two centuries.

Liquidity

Loan /overdraft facility: You can avail a loan/overdraft against your deposit.SBI

provides you loan / overdraft upto 90% of your deposit amount at nominal cost.So

you continue to earn interest in your deposit and still can meet your urgent

financial requirements.

Transferability


27


Transfer of Recurring Deposit accounts between our wide network of branches

without any charge.

Regular Instalments to your Account

Now you have motivation/compulsion to save a chosen amount every

month and create a fund, which helps you to meet your future financial

needs.

Recurring Deposits are available at all SBI Branches

Easy and convenient access of information at SBI Internet Banking

Other Benefits

Nomination Facility - Available

Regular Instalments to your Account

–Save in your account through Fixed Monthly Instalments.

–Monthly Instalments can be deposited on any working day of the

month.

–Delayed monthly instalments attract penalty.

–Instalments payable in multiples of Rs.10/-

Free Fund Transfer & Regular Updates

Free transfer of your funds through standing instructions from your Current or Savings

Bank Account to your Recurring Deposit Account every month for the payment of your

instalments, so that you do not have to worry about regular payments. You can monitor

your deposit through SBI Internet Banking or through a passbook issued to you.


28

http://www.sbi.co.in/viewsection.jsp?id=0,10,76

SBI Home Loans

"THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ

Consumer Awards along with the MOST PREFERRED BANK AWARD in a

survey conducted by TV 18 in association with AC Nielsen-ORG Marg in 21 cities

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SBI Home Loans come to you on the solid foundation of trust and transparency

built in the tradition of State Bank of India. Best Practices followed in SBI

mentioned below will tell why it makes sense to do business with State Bank of India

Best practices followed in SBI

People dealing with

you

End to End service by Permanent employees of SBI who are

accountable to you.

Place SBI branch of your choice will service your loan account. You can


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always meet our employees face to face.

Price Complete transparency.

Interest charged on the daily reducing balance.

Prepayment chargesNo penalty for prepayments made, out of bonafide savings or

windfall gains for which evidence is produced.

Costs hidden in fine

print No hidden costs

Transparency Complete transparency. All the features of our product, including

interest rates, are in the public domain.

Unique features:

* Provision for on the spot "In principle" approval.

* Loan sanctioned within 6 days of submission of required documents.

*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 upto Rs.40 Lac.

*Optional Group Insurance from SBI Life at Concessional premium (Upfront premium


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financed as part of project cost)

*Interest calculated on daily reducing balance basis, and starts from the date of

disbursement.

‘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

*Option to avail loan at the place of employment or at the place of construction

Package of exclusive benefits:

Complimentary international ATM-Debit card

Complimentary SBI Classic/ International Credit Card.

Option for internet-banking

Concessional package under ‘Credit Khazana’ for prospective Auto Loan, Student

Loan, Personal Loan borrowers whose accounts are conducted satisfactorily

50% concession in charges in respect of all personal remittances/ collection of

outstation cheques


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Personal loan at attractive rates under SBI Home Plus scheme tailored exclusively

for SBI Home Loan customers.

Purpose

Purchase/ Construction of House/ Flat

Purchase of a plot of land for construction of House

Extension/ repair/ renovation/ alteration of an existing House/ Flat

Purchase of Furnishings and Consumer Durables as a part of the project cost.

Takeover of an existing loan from other Banks/ Housing Finance Companies.

Eligibility

Minimum age 18 years as on the date of sanction.

Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which

the loan should be fully repaid.

Availability of sufficient, regular and continuous source of income for servicing the loan

repayment.

Loan Amount

40 to 60 times of NMI, depending on repayment capacity as % of NMI as under -


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Net Annual Income EMI/NMI Ratio

Upto Rs.2 lacs 40%

Above Rs.2 lacs to Rs. 5 lacs 50%

Above Rs. 5 lacs 55%

To enhance loan eligibility you have option to add:

1. Income of your spouse/ your son/ daughter living with you, provided they have a

steady income and his/ her salary account is maintained with SBI.

2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is

proposed to be rented out.

3. Depreciation, subject to some conditions and Regular income from all sources.

Margin (Special Festival Season Offer)

Purchase/ Construction of a new House/ Flat/ Plot of land: 15%

for loans up to Rs. 1 cr., 20% for loans above Rs. 1 cr.

Repairs/ Renovation of an existing House/ Flat: 15%

Interest


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Processing Fee (Special Festival Season Offer)

.25% of Loan amount with a cap of Rs.5,000/-(including Service Tax)

Pre-closure Penalty

No penalty if the loan is preclosed from own savings/windfall gains for which

documentary evidence is produced by the customer.

In case, such proof is not produced by the borrower, penalty @2% on the amount prepaid

in excess of normal EMI dues shall be levied if the loan is preclosed within 3 years from

the date of commencement of repayment.

Security

Equitable mortgage of the property

Other tangible security of adequate value like NSCs, Life Insurance policies etc., if the

property cannot be mortgaged

Maximum Repayment Period

For applicants upto 45 years of age: 20 years

For applicants over 45 years of age: 15 years

Moratorium

Upto 18 months from the date of disbursement of first instalment or 2 months after final


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disbursement in respect of loans for construction of new house/ flat (moratorium period

will be included in the maximum repayment period)

Disbursement

In lump sum direct in favour of the builder/ seller in respect of outright purchase

In stages depending upon the actual progress of work in respect of construction of

house/ flat etc.

Documents

Completed application form

Passport size photograph

Proof of Identity – PAN Card/ Voters ID/ Passport/ Driving License

Proof of Residence – Recent Telephone Bill/ Electricity Bill/ Property tax receipt/

Passport/ Voters ID

Proof of business address in respect of businessmen/ industrialists

Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance certificate,

Land/ Building Tax paid receipt etc. (as applicable and subject to satisfaction report from

our empanelled lawyer)

‘SBI-Flexi’ Home Loans

A customized product designed to enable borrowers to hedge their Home Loan against

unfavorable movement in interest rates. The product gives you a one time irrevocable

option to choose one of the three customized combinations of fixed and floating interest

rates and also to choose the order in which the fixed and floating rate will be availed.


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Minimum Loan Amount: Rs.5 lacs

(Other terms and conditions – as applicable to regular Home Loans)

‘SBI-Maxgain’ Home Loans

An innovative and customer-friendly product to enable you to earn optimal yield on your

savings and minimize interest burden on Home Loans, with no extra cost.

The loan is granted as an Overdraft facility with the added flexibility for you to operate

your Home Loan Account like your SB or Current Account.

The product serves to minimize your interest cost by enabling you to park your surplus

funds in ‘SBI-Maxgain’ (with the benefit to withdraw the surplus funds whenever you

require), specially in the wake of low yields from other deposit/ investment avenues.

Minimum Loan Amount: Rs.5 lacs


‘SBI-Realty’ Home Loans

A unique product if you are on the look out for a loan to purchase a plot of land for

house construction. The loan is available for a maximum amount of Rs.20 lacs and with a

comfortable repayment period of upto 15 years.


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You are also eligible to avail another Housing Loan for construction of house on the plot

financed above with the benefit of running both the loans concurrently.

(House construction should commence within 2 years from the date of availment of ‘SBI-

Realty’ Housing Loan)


‘SBI Freedom’ Home Loans

A revolutionary product designed for customers who are on the look out for a source of

finance for a property they want to invest in without mortgaging the same. All you have

to do is pledge any financial security that you have and you will get a Home Loan for

your dream home.

A must-take for those who do not want to pay stamp duty for mortgage of their property

or go through the hassles of creation of mortgage.

You also have an option to take the loan by way of mortgage of the property and pledge

financial securities in lieu of margin money.


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Repayment is highly customized, giving you the option to repay through regular EMIs or

through maturity proceeds of the securities pledged.


‘SBI-OPTIMA’ ADDITIONAL HOME LOANS

‘SBI-HOMELINE’ SPECIAL PERSONAL LOANS

Innovative and value added products extended to existing Home loan borrowers with a

satisfactory repayment record of 3 years and whose loan is Standard Asset, with a view to

reinforce the customer loyalty and to maintain long term relationship with the borrowers.

In case of take-over of Home Loans from other Banks/HFCs, the borrower should have

fulfilled the above conditions with the present Bank/HFC.

Purpose

‘SBI-Optima’ Additional Home Loans to meet expenditure towards major repair,

renovation, addition to their house/flat, purchase

of furniture, fixtures and consumer durables

‘SBI-Homeline’ Special Personal

Loans

General purpose loan to meet expenditure to

meet forseen/unforeseen contingencies

Eligibility


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‘SBI-Optima’ Additional Home Loans 18 times NMI (for salaried borrowers)/

1 ½ times NAI ( for others) or

(i)25% of the original project cost of house/flat

(ii) 85% of the cost of repairs etc. or (iii) gap

between 85% of the current market price of

flat/house and actual outstanding loan dues ,

Whichever is lower (EMI/NMI ratio of all loans

should not exceed 60%)


Loans

18 times NMI (for salaried borrowers)/

1 ½ times NAI (for others)

Interest Rates/processing fee

‘SBI-Optima’ Additional Home Loans As applicable to Home Loans


Loans

Interest rates 50 bps above rates applicable to

the repayment tenure (floating rates only)

Processing fee : 0.50% of the loan amount

(including service tax)

Other Salient Features


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Inbuilt provision for availment of the loans on the expiry of each bloc of 5 years,

the first bloc commencing on the expiry of 5 years from the date of sanction of

original Home Loan.

Original Home Loan and all ‘SBI-Optima’ Home Loans/’SBI-Homeline’ Personal

Loans can run concurrently

Comfortable repayment obligations – Tenure of the loans equal to the residual

maturity of the original Home Loans –

CAR LOAN

Move ahead in life with SBI Car Loans! If you have been putting off purchasing that Car,

we invite you to go through our Car Loan Scheme.

Low interest rates, easy repayment options, total transparency.

Finance to include vehicle registration charges, insurance, one-time road tax and

accessories (subject to conditions).

Well, what are you waiting for? Just contact any of our branches (more than 6000) that

offer Car Loans or our Personal Banking Branches and give wheels to your desire!

You can apply for an SBI Car Loan to purchase:

A new car, jeep, Multi Utility Vehicle (MUV) or SUV (any make or model)

A used car / jeep / MUV /SUV (not more than 5 years old). (any make or model)

Enjoy the SBI Advantage:


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Excellent service and lower costs. A quick survey of similar schemes available elsewhere

and you will find that SBI Car Loans for new and old vehicles offer you :

Lowest interest rates

Longer repayment period of unto 84 months.

No hidden costs or administrative charges.

Finance for one-time road tax, registration fee, insurance premium and

accessories

No advance EMIs.(Some Banks/companies ask you to pay one or more EMIs at

the time of disbursement of loan, thereby effectively reducing your loan amount.)

Complete transparency: We levy interest on daily reducing balance method.

When you pay one instalment, the interest is automatically calculated on the

reduced balance thereafter. When you pay interest on an annual reducing balance,

as charged by many other companies/banks, the interest amount for the coming

year is determined on the amount outstanding at the beginning of the year. You

continue to pay interest even on the amounts you repay during the year.


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The Scheme

Purpose

You can take finance for:

A new car, jeep or Multi Utility Vehicles (MUVs)

A used car / jeep (not more than 5 years old). (Any make or model).

Take over of existing loan from other Bank/Financial institution (Conditions apply)

Eligibility

To avail an SBI Car Loan, you should be:

Individual between the age of 21-65 years of age.

A Permanent employee of State / Central Government, Public Sector

Undertaking, Private company or a reputed establishment or

A Professionals or self-employed individual who is an income tax assessee or

A Person engaged in agriculture and allied activities.

Net Annual Income Rs. 100,000/- and above.


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Salient Features

Loan Amount

There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5

times the net annual income can be sanctioned. If married, your spouse's income could

also be considered provided the spouse becomes a co-borrower in the loan. The loan

amount includes finance for one-time road tax, registration and insurance. No ceiling on

the loan amount for new cars .Loan amount for used car is subject to a maximum limit

of Rs. 15 lacs.

Type of Loan

1. Term Loan

2. Overdraft - a) For New vehicles only

b) Minimum loan amount: Rs. 3 lacs.

Documents Required

You would need to submit the following documents along with the completed application

form if you are an existing SBI account holder:

1. Statement of Bank account of the borrower for last 12 months.

2. 2 passport size photographs of borrower(s).

3. Signature identification from bankers of borrower(s).


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4. A copy of passport /voters ID card/PAN card.

5. Proof of residence.

6. Latest salary-slip showing all deductions

7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years for

professional/self-employed/businessmen duly accepted by the ITO wherever

applicable to be submitted.

8. Proof of official address for non-salaried individuals.

If you are not an account holder with SBI you would also need to furnish documents that

establish your identity and give proof of residence.

Margin: New / Used vehicles: 15% of the on the road price.

Repayment: You enjoy the longest repayment period in the industry with us.

Repayment period:

For Salaried: Maximum of 84 months

For Self-employed & Professionals: Maximum 60 months

Repayment period for used vehicles :Up to 84 months from the date of original purchase

of the vehicle (subject to maximum tenure as above).

Prepayment Penalty:

Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to certain


44

conditions.

Interest

Processing Fee

0.50% of Loan amount and to be paid upfront.

Minimum: Rs. 500/-

Maximum Rs. 10,000

25% of Processing fee will be retained if application is rejected after pre-sanction survey.

Security As per bank's extant instructions.

EDUCATION LOAN

A term loan granted to Indian Nationals for pursuing higher education in India or abroad

where admission has been secured.

Eligible Courses

All courses having employment prospects are eligible.

Graduation courses/ Post graduation courses/ Professional courses

Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan

Fees payable to college/school/hostel


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Examination/Library/Laboratory fees

Purchase of Books/Equipment/Instruments/Uniforms

Caution Deposit/Building Fund/Refundable Deposit

Travel Expenses/Passage money for studies abroad

Purchase of computers considered necessary for completion of course

Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc.

Amount of Loan

For studies in India, maximum Rs. 10 lacs

Studies abroad, maximum Rs. 20 lacs

Interest Rate

For loans upto Rs.4 lacs - 12.75% p.a. Floating

For loans above Rs.4 lacs - 13.75% p.a. Floating

Processing Fees

No processing fee/ upfront charges

Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted

in the margin money

Repayment Tenure


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Repayment will commence one year after completion of course or 6 months after

securing a job, whichever is earlier.

Place of Study Loan AmountRepayment Period

in Years

In IndiaUp to Rs. 7.5 lacs 5-7

Above Rs. 7.5 lacs 5-10

AbroadUp to Rs. 15 lacs 5-7

Above Rs. 15 lacs 5-10

Margin

For loans up to Rs.4.0 lacs : No Margin

For loans above Rs.4.0 lacs:

o Studies in India: 5%

o Studies Abroad: 15%

Security

Amount Studies In India Studies Abroad

Upto Rs. 4 lacs No Security No Security

Above Rs. 4 lacs to

Rs. 7.50 lacs

Suitable third

Party Guarantee

Suitable third Party

Guarantee

Above Rs. 7.50 lacs

to Rs. 10 lacs(India)/

Rs. 15 lacs(Abroad)

Tangible

Collateral

Tangible Collateral

security of suitable


47

security for full

value of loan

value of loan or

suitable third party

guarantee.

Rs 15 lacs to Rs. 20

lacs___

Tangible Collateral

security for full value

of loan

Documentation Required

Completed Education Loan Application Form.

Mark sheets of last qualifying examination

Proof of admission scholarship, studentship etc

Schedule of expenses for the specified course

2 passport size photographs

Borrower's Bank account statement for the last six months

LOAN TO PENSIONERS

If you are a Central or State Government pensioner drawing your pension through one of

our branches and are not more than 72 years of age, you can avail of a loan from your

branch to meet your personal expenses. We understand you may have an urgent or

unexpected need for funds or a family obligation to be fulfilled and appreciate your

association with us. You can avail a loan of up to a maximum of 12 months pension,

subject to a ceiling of Rs.1,00,000. The documentation is easy.

The loan may be repaid over 5 years and will carry a low interest rate of 13.25% p.a.


48

There are no processing fees, no hidden costs and no prepayment penalties. Whenever

you have some surplus funds, you can credit your loan account, thereby reducing your

loan liability and interest burden.

Salient features of the Scheme:

Eligibility:

All Central and State Government pensioners, whose pension accounts are maintained by

our branches. The pensioner should not be more than 72 years of age.

Purpose: & Loan Amount:

To meet personal expenses.A maximum of 12 months pension with a ceiling of

Rs.1, 00,000/-

Margin and Security: Margin is NIL and The spouse eligible for family pension should

guarantee the loan or any other family member or a third party worth the loan amount.

Repayment:

60 Equated Monthly Instalments (EMIs) – if age of Pensioner at the time of loan sanction

is upto 70 years

48 Equated Monthly Instalments (EMIs) – if age of Pensioner at the time of sanction is

between 70 – 72 years

Rate of Interest:

0.50% above SBAR Floating i.e. 13.25% p.a.


49

Authorised Branches:

All branches maintaining pension accounts. The facility is available only from the branch

which is maintaining pension account of the applicant.

PROPERTY LOAN

A dream come true! An ALL PURPOSE LOAN for anything that life throws up at

Customer! Do you need funds for a Marriage ceremony, want to take your family to a

well-deserved holiday or for a sudden medical emergency? Customer have some

property, but would rather not sell it? Then why not avail of this ALL PURPOSE LOAN

from SBI? SBI now makes it very much possible for you to only keep your property but

also have liquid funds.

Enjoy the SBI Advantage

Complete transparency in operations

Access this loan from our wide network of branches

Interest rates are levied on a monthly/daily reducing balance method

Lowest processing charges.

Long repayment period of 60 months, upto 120 months for salaried individuals with

check-off facility

No Hidden costs or administrative charges.

No prepayment penalties. You can have surplus funds at any time thereby conveniently

reducing your loan liability and interest burden.

Property Loan Scheme

Avail of an All-Purpose loan against mortgage of any of your property. We offer you

these loans at all our Personal Banking Branches and those branches having Personal

Banking Divisions amongst others.


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Purpose

This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever. If

amount of loan is Rs.25.00 lacs and above then purpose of loan will have to be specified

along with an undertaking that loan will not be used for any speculative purpose whatever

including speculation on real estate and equity shares.

Eligibility

A. An individual who is;

a. An Employee or

b. A Professional, self-employed or an income tax assessee or

c. Engaged in agricultural and allied activities.

B. Your Net Monthly Income (salaried) is in excess of Rs.12, 000/- or Net Annual

Income (others) is in excess of Rs.1, 50,000/-.

The income of the spouse may be added if he/she is a co-borrower or a guarantor.

C. Maximum age limit: 60 years.

Salient Features

Loan Amount

Minimum: Rs.25, 000/-

Maximum: Rs.1 crore. The amount is decided by the following calculation:

24 times the net monthly income of salaried persons (Net of all deductions including

TDS) OR


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2 times the net annual income of others (income as per latest IT return less taxes

payable)

Margin

SBI will finance upto 75% of the market value of your property.

Interest

Term Loan 0.75% above SBAR. i.e.13.50% p.a. Floating

Repayment

Maximum of 60 equated monthly instalments, upto 120 months for salaried individuals

with check-off facility. You could opt to divert any surplus funds towards prepayment of

the loan without attracting any penalty and Security, As per banks extant instructions.

PROPERTY LOAN

A dream come true! An ALL PURPOSE LOAN for anything that life throws up at you!!

Do you need funds for a Marriage ceremony, want to take your family to a well-deserved

holiday or for a sudden medical emergency? You have some property, but would rather

not sell it? Then why not avail of this ALL PURPOSE LOAN from SBI? SBI now makes

it very much possible for you to only keep your property but also have liquid funds.

Enjoy the SBI Advantage

Complete transparency in operations

Access this loan from our wide network of branches


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Interest rates are levied on a monthly/daily reducing balance method

Lowest processing charges.

Long repayment period of 60 months, upto 120 months for salaried individuals with

check-off facility

No Hidden costs or administrative charges.

No prepayment penalties. You can have surplus funds at any time thereby

conveniently reducing your loan liability and interest burden.

Property Loan Scheme

Avail of an All-Purpose loan against mortgage of any of your property. We offer you

these loans at all our Personal Banking Branches and those branches having Personal

Banking Divisions amongst others.

Purpose

This is an all purpose loan, i.e., the loan can be obtained for any purpose whatsoever.If

amount of loan is Rs.25.00 lacs and above then purpose of loan will have to be specified

along with an undertaking that loan will not be used for any speculative purpose whatever

including speculation on real estate and equity shares.

Eligibility

You are eligible if you are:

A. An individual who is;

a. An Employee or

b. A Professional, self-employed or an income tax assessee or

c. Engaged in agricultural and allied activities.


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B. Your Net Monthly Income (salaried) is in excess of Rs.12, 000/- or Net Annual

Income (others) is in excess of Rs.1, 50,000/-.

The income of the spouse may be added if he/she is a co-borrower or a guarantor.

C. Maximum age limit: 60 years.

Salient Features: Loan Amount

Minimum: Rs.25,000/-

Maximum: Rs.1 crore. The amount is decided by the following calculation:

24 times the net monthly income of salaried persons (Net of all deductions

including TDS) OR

2 times the net annual income of others (income as per latest IT return less taxes

payable)

Margin & Interest

We will finance upto 75% of the market value of your property. Term Loan 0.75% above

SBAR. i.e.13.50% p.a. Floating

Repayment

Maximum of 60 equated monthly instalments, upto 120 months for salaried individuals

with check-off facility. You could opt to divert any surplus funds towards prepayment of

the loan without attracting any penalty.

LOAN AGAINST SHARES \ DEBENTURES

Do you need urgent cash but you don't wish to sell or liquidate your holding of shares?


54

Leverage your investments in shares, debentures, public sector bonds and Government

securities for loans to meet unforeseen expenses!! You need not miss out on the next

stock market boom!!

Avail of loans up to Rs.20.00 lacs against your shares/debentures to enable you to meet

contingencies, personal needs or even for subscribing to rights or new issue of shares.

Note: Loan will not be sanctioned for

1. Speculative purposes

2. Inter-corporate investments or

3. Acquiring controlling interest in company/companies.

Enjoy the SBI advantage

Low interest rates. Further, we charge interest on a daily reducing balance!!

Low processing charges; only 1% of loan amount - compare with 1-3% of others.

No hidden costs or administrative charges..

No prepayment penalties. Reduce your interest burden and optimally utilize your

surplus funds by prepaying the loan.

The Scheme

Eligibility

This facility is available to our existing individual customers enjoying a strong

relationship with SBI. This loan could be availed either singly or as a joint account with

spouse in 'Either or Survivor'/ 'Former or Survivor' mode. It is offered as an Overdraft or

Demand Loan. The facility is available at 50 select centers.


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Salient Features

Purpose

For meeting contingencies and needs of personal nature. Loan will be permitted for

subscribing to rights or new issue of shares / debentures against the security of existing

shares / debentures. Loan will not be sanctioned for (i) speculative purposes (ii) inter-

corporate investments or (iii) acquiring controlling interest in company / companies.

Loan Amount

You can avail of loans up to Rs 20.00 lacs against your shares/debentures.

Documents Required

You will be required to submit a declaration indicating:

Details of loans availed from other banks/ branches for acquiring shares/

debentures.

Details of loans availed from other banks/ branches against security of shares/

debentures

Margin & Interest

You will need to provide a margin amount of 50% of the prevailing market prices of the

shares/ non-convertible debentures being offered as security. (The market prices refer to

the prices in the Stock Exchanges as reported in the Economic Times.)At SBAR Floating

i.e. 12.75% p.a.

Repayment Schedule

To be liquidated in maximum period of 30 months through a suitable reducing DP


56

programme.

In case of a default or if the outstanding is over Rs.20.00 lacs, the shares/debentures will

be transferred in the name of the Bank.

Security:

Pledge of the demat shares/debentures against which overdraft is granted.

List of Identified Centres

1 Ahmedabad Baroda Surat Gandhinagar Rajkot

2 Bangalore Mysore

3 Bhopal Indore Jabalpur Raipur Gwalior


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4 Bhubaneswar Cuttack Sambalpur

5 Chandigarh Jallandhar Ludhiana Amritsar

6 Chennai Coimbatore Tirupur

7 Guwahati Shillong

8 Hyderabad Visakhapatnam Karimnagar Tirupati

9 Kolkatta Siliguri Asansol (Bardhamon)

10 Lucknow Varanasi Kanpur Allahabad

11 Mumbai Pune Panjim Aurangabad Nagpur

12 New Delhi Jaipur Agra Udaipur

13 Patna Ranchi Bhagalpur

14 Thiruvananthapuram Cochin

Coverage

Scheme is available at select branches at 50 centres.

Essential Parameters for acceptance of shares as security

(i) The equity shares and debentures offered as security should be fully paid. Preference


58

shares will not be acceptable as security

(ii) The shares/ debentures offered as security must be in demat form.

(iii) The share/ debenture should be of a company listed in BSE 100 Index, except those

of SBI (list of BSE 100 Index companies is available on www.bseindia.com).

(iv) The market price of the security should not have fallen below par for preceding 52

weeks.

(v) The market price of the security should not be as variance with the arithmetical

average of preceding 52 weeks high and low by more than 25% in downward direction.

(vi) ( P/E ratio of the company should not exceed 40 as published in Economic Times. In

case P/E ratio is not available the shares/ debentures of the company should not be

accepted as security.

(vii) The total number of shares of the company traded on NSE and BSE should exceed

25000 on the day of financing and on each preceding 2 days.

(viii) Security where the market price 52 week high is 4 times of the 52 week low should

not be accepted. (Information related to 52 weeks high and low, P/E ratio and traded

volumes in NSE and BSE is available in Economic Times).


59

http://www.bseindia.com/

Rating

Debentures must have been rated 'AA+' or higher by CRISIL or equivalent rating by any

other reputed rating agency like ICRA etc.

Repayment

To be liquidated in maximum period of 30 months through a suitable reducing DP

programme.

Declaration

The applicant will have to submit a declaration indicating:·

Details of loans availed of by them from other banks/ branches for acquiring

shares/ debentures

Details of loans availed from other banks/ branches against security of shares/

debentures

Transfer of shares

Shares/debentures will be transferred in the name of the Bank when there is a default and

the outstanding is over Rs.20 lacs.


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Documentation

Application for overdraft limit against security of shares/ debentures indicating

details of shares (i.e. ISIN of the company whose shares/ debenture are offered as

security, number of shares/ debenture offered as security) along with borrowers

DP ID and DP account number.

Applicant has to submit consent letter agreeing to regularize the account/

replenish the margin shortfall, on account of adverse market price variation,

immediately on receipt of notice from the branch. Applicant will also submit

consent to the condition that in the event of his failure to regularize the account

immediately, Bank has the right to get the security transferred in its name and

arrange for its sale, without any further reference to him. The Bank shall exercise

this option without prejudice to its rights to recover the dues by other means also.

DP Note and DP Delivery letter.

Irrevocable Letter of Undertaking addressed to the Bank signed by all holders

of the shares.

Dividend collection mandate(s).

Either or Survivorship Letter (if applicable).

Security and Nature of loan

Pledge of the demat shares/ debentures against which overdraft is granted and Is

Overdraft / Demand Loan with the Repayment programme maximum 30 months.


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RENT PLUS

Name of scheme: Rent Plus

Nature of facility: Term Loan

Period of Repayment: 7 years or the residual lease period, whichever is lower.

Eligible customer

Owners of residential buildings and commercial properties in

Rural/Semi-urban/Urban/Metro areas which are to be rented or already rented to MNCs/

Banks/ Large & medium size corporate.

Purpose

To meet liquidity mis-match of the applicants.

Quantum of finance

Min. Rs. 50,000.00

Max. Rs. 5 crore for properties located at Non-Metro Centres and Rs. 7.50 crores for

properties located at Metro Centres. There will be no differentiation on the basis of

constitution of the applicant.

Margin & Interest: 15% and 0.75% above SBAR. i.e.13.50% p.a. Floating

Repayment: Equated Monthly Installments of 7 years or residual lease period.

Prepayment: 1% of the loan amount prepaid.


62

.

Primary Security

Assignment of receivables and recording of power attorney with the lessee is a must.

Collateral Security

i) First charge on buildings against the rentals of which the loan would be sanctioned

(value of the property should be double the amount of loan) or any other acceptable

property of equal value.

ii) Equitable Mortgage of immovable property by deposit of titdeed.

iii) In case of partnership firm, personal guarantee of the partners of the building. In case

of company personal guarantee of directors to be obtained.

Insurance: The amount of insurance should cover the value of assets charged to the

Bank.


63

Applicability: Metro / Urban / Semi-urban/ Rural centers.

Processing charges and cost of valuation

1% of loan amount, subject to a maximum amount of Rs.50000/=, to be paid upfront as

processing charges. The charges for valuation of the property are to be borne by the

applicant.

MEDI-PLUS SCHEME

For spreading smiles and cheers on the faces of our customers…, we've launched a new

loan scheme keeping specialized medical treatments in mind - a scheme that we call Medi

Plus!

Enjoy the SBI advantage:

Concessions in margin amounts, interest rates and processing charges!!

Lowest interest rates. Further, we charge interest on a daily reducing balance!!

Lowest processing charges; only 1% of loan amount -(compare with 1-3% of

others.)

No hidden costs or administrative charges..

No prepayment penalties. Reduce your interest burden and optimally utilize your

surplus funds by prepaying the loan.

Flexible repayment period.


64

The Scheme

The Specialised Medical Treatments, not only do the cost implications run into several

lakhs of rupees, but more often than not, these liquid funds also need to be generated at a

very short notice, in order to be able to make prompt hospital bill payments… With this

in mind, Medi Plus is specially designed to make life simpler for you under what could

well be trying circumstances.

You may avail of loans under the Medi Plus Scheme to cover the cost of treatments such

as:

Corneal Implant

Orthodontic Treatment (fixed tooth implant)

Ilazirav Technique of lengthening a limb

Congenital heart surgery

Angioplasty

Heart Valve Replacement Surgery

GIFT (in-vitro technique for child bearing)

Serious Accidents and Multiple Injuries Surgery

Hip and Knee Replacement Surgery

Purpose

Loan for individuals to avail specialised expensive medical treatment e.g. coronary by-


65

pass, Hip and Knee replacement surgery, cochlear implants (surgical) for the hearing

impaired etc.

Eligibility

You qualify to avail of loans under this scheme, if you are:

An employee of the Government/ a reputed PSU/ a profit making public limited

company, and if you have a minimum, 10 years of service

A self-employed professional

A pensioner, who has taken voluntary retirement and is not yet 60 years old

An agent of Insurance/ KVP/ Mutual Funds etc. with a minimum annual income

of Rs.3 lakh

An employee/ a pensioner with a minimum income of Rs.10,000 per month or if

you are a neither, a minimum income of Rs. 3 lakhs per annum.

Note: If the person being treated is a minor, the loan may be granted to a parent.

The loan amounts range from a minimum of Rs.50, 000/- to a maximum of 12 months

NMI (when it concerns salaried individuals and pensioners) or a 1 year net annual income

(when it comes to persons other than salaried individuals and pensioners), subject, to the

following ceilings:

For Employees and Professionals : Rs.2.0 lacs

For Pensioners and Agents : Rs.1.0 lac


66

Once sanctioned, the loan is disbursed by the issuance of a draft/ banker's cheque,

favouring the hospital, where the treatment is being undertaken or where it's proposed to

be undertaken.

Margin, Interest and Security

20% of the total cost of treatment and 0.75% above SBAR i.e.13.50% p.a.As per bank's

extant instructions.

Repayment Period and Processing Fee (One time):

You may comfortably repay your loan over a maximum - 60 Equated Monthly

Installments.0.50% of the loan amount.

Authorised branches are pleased to inform customers that currently, The Medi plus

Scheme is being offered at:

All computerized SBI branches in identified cities

All SBI branches, in metro/ urban centers, having "P" divisions

All SBI Personal Banking Branches

Processing Fee: 0.50% of the entire loan amount, If the applicant already maintain a

regular Housing Loan Account with us the processing fee is waived.

List of Diseases

Corneal implant

Orthodontic treatment - fixed tooth implant

Ilazirav technique of lengthening a limb

Angioplasty

Congenital heart surgery


67

Heart Valve replacement surgery

INTEREST RATES

State Bank of India provides information on the various Interest rates offered by it on

various loans and deposit schemes


68

Introduction to the project

TITLE:

Study and Awareness Level of Retail Banking (Personal Banking) Products of SBI Bank,

Hubli

OBJECTIVES:

To study retail banking.

To understand perception of customers about retail banking.

To know the benefits to customers from SBI retail banking products.

METHODOLOGY

Date collection method

Following are the sources of data collection for fulfilling any objectives.

Primary data

Questionnaire survey of 100 customers.

Interaction with customers.

Interaction with bank officials.

Secondary data

www.sbi.com.

www.investopedia.com.

Company manuals.

Commercial Banks Book.

http://www.sbi.com/

ANALYSIS

1) Do you have an account with SBI Bank

77 77.0 77.0 77.0

23 23.0 23.0 100.0

100 100.0 100.0

Yes

No

Total

ValidFrequency Percent Valid Percent

CumulativePercent

Among 100 respondents 77 are SBI Customers and have different accounts and have

transactions in SBI Bank.

2(i)Which are the retail banking products you deal with SBI(savings A/C)

24 24.0 24.0 24.0

76 76.0 76.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

YesNo

Fre

qu

en

cy

80

60

40

20

0

76

24

76% of the customer the respondent have got savings account in SBI Bank and remaining 24% of them use other accounts.

2(ii) Which are the retail banking products you deal with SBI(FD).

73 73.0 73.0 73.0

27 27.0 27.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

27% of the respondents have deposits in Fixed Deposits. There are less respondents in case of Fixed deposit because it is kept for long time which will be fixed.

2(iii) Which are the retail banking products you deal with SBI (Homeloan).

86 86.0 86.0 86.0

14 14.0 14.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

Only 14% of the respondents have Borrowed for Loan for Construction of Home, i.e Home Loan.

2(iv) Which are the retail banking products you deal with SBI (Edu loan).

97 97.0 97.0 97.0

3 3.0 3.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

Few of them i.e 3% have taken education loan in SBI Bank and remaining have either deposited or borrowed loan for some other purpose.

2(v) Which are the retail banking products you deal with SBI(Debit Card).

60 60.0 60.0 60.0

40 40.0 40.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

YesNo

Fre

qu

en

cy

70

60

50

40

30

20

10

0

40

60

There are 40% of the customer who are using Debit cards and 60% of them don’t use Debit card.

2(vii)Which are the retail banking products you deal with SBI(Auto loan)

95 95.0 95.0 95.0

5 5.0 5.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

Only 5% among the respondents have borrowed Auto loan. There are less people who go for auto loan.

2(viii)Which are the retail banking products you deal with SBI(Gold Loan)

99 99.0 99.0 99.0

1 1.0 1.0 100.0

100 100.0 100.0

No

Yes

Total


CumulativePercent

There is less response in case of Gold loan as people don’t want to borrow on the bases of Gold.

3 How do you find the rate of return on SBI retail products.

51 51.0 66.2 66.2

26 26.0 33.8 100.0

77 77.0 100.0

23 23.0

100 100.0

Good

Moderate

Total

Valid

SystemMissing

Total

Frequency Percent Valid PercentCumulative

Percent

There is good response regarding the rate of return. Many of the respondents have said

that the rate of return is good i.e 51% and 26% have said it as moderate.

4(a)The factors that made you to become a part of the SBI(Convenience).

26 26.0 33.8 33.8

37 37.0 48.1 81.8

14 14.0 18.2 100.0

77 77.0 100.0

23 23.0

100 100.0

Very Good

Good

Ok

Total

Valid

SystemMissing

Total


Percent

The main factor for some customer is Convenience where 26% of them have said Very Good, 37% have said Good and remaining i.e 14% said it Ok i.e Moderate.

4(b) The factors that made you to become a part of the SBI(Service).

19 19.0 24.7 24.7

43 43.0 55.8 80.5

15 15.0 19.5 100.0

77 77.0 100.0

23 23.0

100 100.0

Very Good

Good

Ok

Total

Valid

SystemMissing

Total


Percent

43% Respondents have said that the service is the first factor which made them to open

account in SBI Bank. The other 19% of them have said very good for the service given

and 15% have said its Ok.

4(c)The factors that made you to become a part of the SBI(Int Rates)

5 5.0 6.5 6.5

28 28.0 36.4 42.9

44 44.0 57.1 100.0

77 77.0 100.0

23 23.0

100 100.0

Very Good

Good

Ok

Total

Valid

SystemMissing

Total


Percent

The Interest rate is Moderate for 44%,28% have said its Good and remaining 5% have said the interest as very good.

4(d)The factors that made you to become a part of the SBI(Loan facilities).

9 9.0 11.7 11.7

32 32.0 41.6 53.2

36 36.0 46.8 100.0

77 77.0 100.0

23 23.0

100 100.0

Very Good

Good

Ok

Total

Valid

SystemMissing

Total


Percent

The Loan facility is also the factor, which influenced to transact with SBI Bank, and 36%

have said is Ok, 32% respondents have said Good and remaining 9% have said it as Very

Good.

5. The transaction done in SBI are.

32 32.0 41.6 41.6

43 43.0 55.8 97.4

2 2.0 2.6 100.0

77 77.0 100.0

23 23.0

100 100.0

Quick

Moderate

Slow

Total

Valid

SystemMissing

Total


Percent

43% of the respondents say that the transactions are Moderate, 32% is Quick and

remaining 2% say it as slow.

6 How will you get to know about SBI retail Banking facilities or the offers.

40 40.0 51.9 51.9

17 17.0 22.1 74.0

18 18.0 23.4 97.4

2 2.0 2.6 100.0

77 77.0 100.0

23 23.0

100 100.0

News Paper

Website

TV Advertisement

Any Other

Total

Valid

SystemMissing

Total


Percent

The Products and Offers of SBI Bank are known through Newspapers which we can see

in the above Bar diagram 40%.17% from Websites, TV advertisement is 18% from which

public is aware of SBI Products and Offers.

7(i)How frequently you use the retail banking products(savings A/C)

29 29.0 39.7 39.7

39 39.0 53.4 93.2

4 4.0 5.5 98.6

1 1.0 1.4 100.0

73 73.0 100.0

27 27.0

100 100.0

Weekly

Monthly

Quarterly

Yearly

Total

Valid

SystemMissing

Total


Percent

39% of the respondents who are having Savings Account in SBI Bank visit

monthly.29% visit weekly, 4% visit Quarterly.

7(ii)How frequently you use the retail banking products(FD).

3 3.0 9.7 9.7

3 3.0 9.7 19.4

4 4.0 12.9 32.3

21 21.0 67.7 100.0

31 31.0 100.0

69 69.0

100 100.0

Weekly

Monthly

Quarterly

Yearly

Total

Valid

SystemMissing

Total


Percent

21% of the respondents visit bank to know about their balance yearly and

there are respondent who visit Weekly, Monthly and Quarterly where the percentage is

3%, 3% and 4% respectively.

7(iii)How frequently you use the retail banking products(Home loan).

4 4.0 28.6 28.6

2 2.0 14.3 42.9

8 8.0 57.1 100.0

14 14.0 100.0

86 86.0

100 100.0

Monthly

Quarterly

Yearly

Total

Valid

SystemMissing

Total


Percent

Some of the respondent said that they will visit Yearly to pay the interest which is 8%,

2% of the respondent said they will visit Quarterly and remaining 4% Monthly..

7(iv)How frequently you use the retail banking products(Edu Loan).

1 1.0 50.0 50.0

1 1.0 50.0 100.0

2 2.0 100.0

98 98.0

100 100.0

Quarterly

Yearly

Total

Valid

SystemMissing

Total


Percent

The respondents of Education Loan visit SBI Bank Quarterly or Yearly on the basis of

terms and conditions.

7(v)How frequently you use the retail banking products(Debit Card).

30 30.0 81.1 81.1

6 6.0 16.2 97.3

1 1.0 2.7 100.0

37 37.0 100.0

63 63.0

100 100.0

Weekly

Monthly

Quarterly

Total

Valid

SystemMissing

Total


Percent

30% of SBI customers use it weekly and 6% of them use monthly and remaining 1%

quarterly.

7(vii)How frequently you use the retail banking products(Auto loan)

5 5.0 100.0 100.0

95 95.0

100 100.0

YearlyValid

SystemMissing

Total


Percent

For Auto loan 5% of the respondents visit SBI bank yearly to pay the interest.

8 How do you feel interest rate of SBI retail products Borrowings.

30 30.0 39.5 39.5

46 46.0 60.5 100.0

76 76.0 100.0

24 24.0

100 100.0

Good

Moderate

Total

Valid

SystemMissing

Total


Percent

46% of the respondents say that the interest on Borrowings is Moderate and 30% of them say, interest rate is Good.

9. How do you rank SBI retail Banking.

13 13.0 16.7 16.7

57 57.0 73.1 89.7

8 8.0 10.3 100.0

78 78.0 100.0

22 22.0

100 100.0

Best

Good

Moderate

Total

Valid

SystemMissing

Total


Percent

The SBI customer Rank the SBI products as shown in the above chart. 57% of them say

the retail products of SBI are Good, 13% rank them as Best and remaining 8% rank it as

Moderate.

10 Are you interestd to transact with SBI retail products.

8 8.0 34.8 34.8

15 15.0 65.2 100.0

23 23.0 100.0

77 77.0

100 100.0

Yes

No

Total

Valid

SystemMissing

Total


Percent

Among the respondent 8% said they wish to open accounts or want to deal with retailing

products of SBI bank where as others don’t want to open account , because they already

have accounts in other banks.

FINDINGS

1) The SBI customers are satisfied for using the SBI Retail products of SBI Bank and

are very much influenced by the factors like convenience, rate of interest and

services.

2) The project could help me in understanding different types of retail products and

their information.

3) The perception of the SBI customer relating to retail banking products provided by

SBI bank.

4) The awareness of Retail Banking Products of SBI Bank through the different

Medias like TV advertisements, News Papers.

5) The terms, conditions and Interest rates of the Retail Banking Products which as a

customer should know while using the retail products of SBI Bank .

RECOMMENDATIONS

1) The costumers are aware of only few products of SBI Retail Banking products. So

bank should provide the information regarding the availability of the products.

2) Disbursement of loans should be quickly done as and when required.

3) There are many People who don’t know about On-Line Banking, so bank should

help to know about the operations and facilities.

4) The bank should provide information relating to Interest. They should help to

know how floating or fixed rate of interest is charged and the terms and

conditions.

LIMITATIONS

1. The sample size is 100 and findings are based on these samples.

2. Some of the confidential information about bank was not provided.

3. There is no comparison with other Banks.

4. The study was restricted to 4 months.

5. There were some difficulties when asked for personal details like cell numbers

were asked.

Conclusion:

Most of the customers are aware of few SBI retail banking products like Home Loan,

Savings Account, Education loan and they are not aware of products like Loan against

Shares & Debentures, Loan against Mortgage of Property. So the bank should help the

customers to know about such products which they are less aware. They are satisfied on

the interest of Retail Banking products.

SBI Bank is providing a good service to the customers and it can be termed as

satisfactory from the respondents (Questioner). Executives in SBI Bank are good and co-

operative. To conclude, the overall performance of the SBI Retail Banking products are

good. Though the study was done for a short period it was a very good experience and

learning experience.




Questionnaire

I Miss Rajashree D Kiragi student of IV th Sem of KLES’s IMSR, Hubli is making a thorough “Study & Awareness level of Retail Banking (personal Banking) Products of SBI Bank, Hubli”. I request you to please fill the options & it will be used only for study purpose.Name ___________________________________Address ___________________________________Occupation ___________________________________Phone No ______________Cell No_______________

1. Do you have an account with SBI bank? a) Yes b) No If No go to question No.10

2. Which are the retail banking products you deal with SBI [Mark in front of the option]a) Savings A/cb) Fixed Deposit A/cc) Home Loan

d) Education Loane) Debit Card [ATM Card]f) Credit Card g) Auto Loan

h) Gold Loan

i) On-line Banking

j) If any, specify 3. How do find the rate of return on SBI retail products. a) Good b) Moderate c) Poor 4. The factors that made you to become a part of the SBI [Mark on the option] a) Convenience Very good Good Ok Bad Very Bad

b) Service Very good Good Ok Bad Very Bad

c) Interest Rates Very good Good Ok Bad Very Bad

d) Loan facilities Very good Good Ok Bad Very Bad

5. The Transactions done in SBI are

a) Quick b) Moderate c) Slow

6. How will you get to know about SBI Retail Banking facilities or the offers? a) News paper b) Website c) TV advertisements d) If any specify___________

7. How frequently you use the retail banking products?Products Yes No Weekly Monthly Quarterly Yearlya)Savings A/cb)Fixed Deposits A/cc)Home Loand)Education Loane)Debit Cardf)Credit Cardg)Auto Loanh)Gold Loani)On-line Bankingj)if any specify

8. How do you feel Interest rate of SBI Retail products Borrowings? a) Good b) Moderate c) Poor

9. How do you rank SBI Retail Banking Products? a) Best b) Good c) Moderate d) Poor e) Very poor. 10. Are you interested to transact with SBI retail products? a) Yes b) No specify _________________________

Thank you

Bibliography

Websites:

www.sbi.com.

www.investopedia.com.

Reference Books:

Bank manuals.

Commercial Banks Book.

http://www.sbi.com/

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