CONTENT

Page no.

Acknowledgement...
Executive Summary..........................................................

Chapter 1..
Profile

o Students profile
Overview...
History...
Competitors.......
Strength/Opportunity & weakness/Threats...
Different Products.....
Awards & Recognitions by Central bank of india.
.......

Chapter 2..
Introduction to Home loan Product....
SBI Advance Product.....
Statement the Problem...
Research objectives....
Significance and scope...

Chapter 3.
Research methodology

Chapter 4 ...
Analysis of data

Chapter 5....
Findings
Suggestion & Recommendation.....
Conclusion

Annexure (Questionnaire).
Reference....
1
 Acknowledgement

If words are considered to be signs of gratitude then let these words convey the very same.
My sincere gratitude to State Bank of India for providing me with an opportunity to work with
State Bank of India and giving necessary directions on doing this project to the best of my
abilities.

I am highly indebted to Shri Hector Charles, Chief Manager (RACPC) and company
project guide, who has provided me with the necessary information and also for the support
extended out to me in the completion of this report and his valuable suggestion and
comments on bringing out this report in the best way possible.

I am grateful to all faculty members of Department of Business Administration,

University of Lucknow, Lucknow and my friends who have helped me in the successful
completion of this project.

I extend my heartfelt thanks to Mr. Manoj Srivastav, Human Resource Manager Lucknow
Head Office SBI. And also thankful to my friends for giving their valuable support.

Thanking You

2
 Executive Summary
In the growing global competition, the productivity of any business concern depends upon
the behavioral aspect of consumers. This topic deals with the customers perception towards
other Advance Product from SBI credit cards at Lucknow. This project report contains 5
different chapters. The report begins with the introduction to company, its area of operation,
its organization structure, its achievements, etc.

The second chapter is the introduction to the Advance Product which gives a brief idea
regarding ADVANCE PRODUCT of SBI MAIN BRANCH, Lucknow where the project is
undertaken. It also contains the objectives and limitations of the project.

The third chapter, methodology adopted in preparing this report is mentioned. It covers the
sample procedure, types of data used and the data collection method.

The fourth chapter comprehensive coverage of forecasting concepts and techniques which
shows the analysis of data through tabulation, computation and graphical representation of
data collected from survey.

The fifth chapter deals with the findings, suggestion & conclusion part which is very much
important after analysis is made.

As we know that only analysis and conclusion is not the end of a research, so in the sixth
chapter the recommendation part is covered which are made after a depth study of the
analysis part of thesis.

In each of the five chapters as described above, every chapter has been scheduled in a
manner so as to enable the reader to appreciate the contents easily. The report is supported by
figures and data wherever necessary with a view to assist the reader in developing a clear cut
understanding of the topic.

I hope this report will be extremely useful for those it is meant. Constructive and healthy
suggestions for improvements of the report will be great fully appreciated.

Somendra Singh

3

Personal Detail

Company Profile

Overview

History

Competitors

SWOT Analysis

Different Products

Awards & Recognitions by SBI

4
 Personal Details

Name : Ayushi Pathak

Gender : female
Date of Birth :June 22, 1994
Language Proficiency : English & Hindi

Phone : 7580927261
Email ID : [email protected]

5
 OVERVIEW
The deposits of Bank have risen to `12, 02,740 crores with the annual growth at
15.24% over that of last years level of `10, 43,647 crores.

On the advances front Bank has crossed the `10, 00,000 crores level and now the
advances stand `10, 78,557 crores. Like the deposits, the growth of 20.70% over last
year is better than the growth recorded by All Scheduled Commercial Banks. The
growth has come mainly from a surge in advances to large corporates at `50,549
crores, which represents an unprecedented growth of 40.28% during this FY
compared to 15.23% (`16,298 crores) achieved last FY. Mid corporate segment too
has made a significant contribution of 31,472 crores giving an 18.15% growth, as
against `12,173 crores (8.78% growth) last year.

The retail segment growth has been to the tune of `27,267 crores giving a growth of
14.95% against last years 10.85%. Major drivers in this segment have been our Home
Loans and Auto loans which have registered a 16.28% (` 16,728 crores) and 35.47%
growth (`6,494 crores) respectively.

Under flow of credit to the farming community, your Bank has disbursed direct
Agriculture loans of `22,303 crores during the year, representing a growth of 25.85%
covering 11.89 lac new farmers. Out of the total direct agriculture advance of
1,08,584 crores standing in the books as at 31.03.2013, 30.77% i.e. `33,409 crores
is collateralized by gold.

During the year, the Bank expanded its reach by adding 719 branches to its network
comprising 123 in Metros, 122 in Urban, 170 in Semi-Urban and 304 in rural areas.
As at 31.03.13, out of total 14,816 branches, 66% (9851 branches) are in rural and
Semi-urban areas.

State Bank group has one of the largest ATM networks in the world with 32,752
ATMs as on 31.03.13. Bank has introduced Cash Deposit Machines to facilitate
customers to deposit cash in their accounts by swiping their SBI ATM cum Debit
card. As on 31.03.13, the number of CDMs installed was 665.

7
Management

The bank has 14 directors on the Board and is responsible for the management of the Banks
business. The board in addition to monitoring corporate performance also carries out
functions such as approving the business plan, reviewing and approving the annual budgets
and borrowing limits and fixing exposure limits. Mr. Pratip Chaudhari is the Chairman of the
bank.
Hemant G. Contractor (Managing Director)
Arundhati Bhattacharya (Managing Director & Chief Financial Officer)
Krishna Kumar (Managing Director)
S. Visvanathan (Managing Director)
S. Venkatachalam (Director)
D. Sundaram (Director)
Thomas Mathew (Director)
S.K. Mukherjee (Officer Employee Director)
Rajiv Kumar (Director)
Jyoti Bhushan Mohapatra (Workmen Employee Director)
Deepak Amin (Director)
Harichandra Bahadur Singh (Director)

Shareholding & Liquidity

Sales
2.71
State Govt.+ Central Govt.
GDR issue & Others

Institutions(Mutual Fund, UTI,

Oversease investors 8.41 Insurance,Foreign institution and

banks)
Non Institutions(Corporate 2.4 Non Institutions(Corporate bodies)
bodies)
Institutions(Mutual Fund, UTI, 26.49
Insurance,Foreign institution Oversease investors

State Govt.+ Central Govt. 62.31

GDR issue & Others
0 20 40 60 80

8
Key Areas of Operations
The business operations of SBI can be broadly classified into the key income generating
areas such as National Banking, International Banking, Corporate Banking, & Treasury
operations.

HISTORY

The origin of the State Bank of India goes back to the first decade of the 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 the Bank of Bengal (2
January 1809). A unique institution, it was the first joint-stock bank of British India
sponsored by the Government of Bengal. The Bank of Bombay (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.

Primarily Anglo-Indian creations, the three presidency banks came into existence either as
a result of the compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an arbitrary manner to modernize India's
economy. Their evolution was, however, shaped by ideas culled from similar developments
in Europe and England, and was influenced by changes occurring in the structure of both
the local trading environment and those in the relations of the Indian economy to the
economy of Europe and the global economic framework.

9
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.

Group Photograph of Central Board (1921)

Business
The business of the banks 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 three 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 per cent.
Loans against goods like opium, indigo, salt woolens, cotton, cotton piece goods, mule
twist and silk goods were also 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 against deposit of Company's paper, while the
business of discounts on private as well as salary bills was almost the exclusive monopoly
of individuals Europeans 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.

10
First Five Year Plan
In 1951, when the First Five Year Plan was launched, the development of rural India was
given the highest priority. The commercial banks of the country including the Imperial
Bank of India had till then confined their operations 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 a 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
than a quarter of the resources 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 thus 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 savings and
lenders to creditworthy parties was soon to give way to the concept of purposeful banking sub
serving the growing and diversified financial needs of planned economic development. The
State Bank of India was destined to act as the pacesetter in this respect and lead the Indian
banking system into the exciting field of national development.

International presence
As of 28 June 2013, the bank had 180 overseas offices spread over 34
countries. It has branches of the parent in Moscow, Colombo, Dhaka, Frankfurt,
Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in
the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It has offshore
banking units in the Bahamas, Bahrain, and Singapore, and representative offices in
Bhutan and Cape Town. It also has an ADB in Boston, USA.

The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has
seven branches, four in the Toronto area and three in the Vancouverarea.

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

offshore bank: State Bank of India (Mauritius).

11
 In 1982, the bank established a subsidiary, State Bank of India (California), which
now has ten branches nine branches in the state of California and one in
Washington, D.C. The 10th branch was opened in Fremont, California on 28 March
2011. The other eight branches in California are located in Los Angeles, Artesia,
San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield.

In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-
Nigerian Merchant Bank and received permission in 2002 to commence retail
banking. It now has five branches in Nigeria.

In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches throughout the
country. In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank
owning the rest. In Indonesia, it owns 76% of PT Bank Indo Monex.

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

In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it
acquired for US$8 million in October 2005.

COMPETITORS

Competitors and other players in the field:-

Top Performing Public Sector Banks

Andhra Bank
Allahabad Bank
Punjab National Bank
Dena Bank
Vijaya Bank
Top Performing Private Sector Banks

HDFC Bank

ICICI Bank

12
AXIS Bank

Kotak Mahindra Bank

Centurion Bank of Punjab

Top Performing Foreign Banks

Citibank

Standard Chartered

HSBC Bank

ABN AMRO Bank

American Express

SWOT Analysis

Strength
1. The biggest bank in the country

2. Has a separate act for itself. Thus, a special privilege.

3. Biggest branch network in the country

4. First public sector to move to CBS

Weakness
The risks that could ensue to SBI in time to come are as under:

SBI is currently operating at a lowest CAR. Insufficient capital may restrict the growth
prospects of the bank going forward.

13
 Stiff competition, especially in the retail segment, could impact retail growth of SBI and
hence slowdown in earnings growth.

Contribution of retail credit to total bank credit stood at 26%. Significant thrust on growing
retail book poses higher credit risk to the bank.

Delay in technology up gradation could result in loss of market shares.

Management indicated a likely pension shortfall on account of AS-15 to be close to

Rs50bn.

Slowdown in domestic economy would pose a concern over credit off-take thereby
impacting earnings growth.

Opportunity
1. Pool in talent to replace the going top management to serve the next generation

2. Make better use of its CRM

3. Expansion into rural areas

Threats
1. Consolidation among private banks

2. New bank licenses by RBI so there is increased competition in industry

3. Foreign banks that have sophisticated products

4. Lackluster performance of Indian Economy and Indian Rupee against

foreign currency.

14
 DIFFERENT PRODUCTS OF SBI
DEPOSIT LOANS CARDS DIFFERENT CREDIT
CARDS

avings ome Loans onsumer BI International cards
Account Cards

ife Plus Senior oan Against redit Card BI Gold cards
Citizens Property
Savings
Account

Fixed ersonal Travel BI Gold Master cards
Deposits Loans Card

ar Loan ebit Cards our City Your Cards
ecurity
Deposits

ecurring oans ommercia

Deposits against l Cards
Securities

ax-Saver wo Wheeler orporate artnership Cards
Fixed Deposit Cards

alary Account re-approved repaid
Loans Card

dvantage etail Asset urchase BI Employee Cards
Woman Card
Savings
Account

ural Savings Farmer istribution
Account Finance Cards

15

eople's usiness usiness BI Advantage Cards
Savings Installment Card
Account Loans

Freedom lexi Cash erchant
Savings Services
Account

Honors and Awards

Banks achievements in various fields have received national and international
recognition as enumerated below:

FE Best Banks Award-Award for Initiatives

National Award- 2011-12 Best Bank for Excellence in the field of Khadi & Village
Industries (PMEGP)

Agriculture Leadership Award 2012 from Agriculture Today under Development

Leadership category.

Best IT driven Innovation Award in Banking in the Country from NASSCOM

was awarded to APGVB, RRB sponsored by SBI.

Ministry of Rural Development, GOI, awarded Certificate of Excellence for

Banks proactive role in establishing Rural Self Employment Training Institutes across
the country during the year 2011-12.

Asias Best CSR Practice Award instituted by CMO Asia has been awarded to the
Bank in Singapore.

Asian CSR Leadership Award 2012 has been conferred to the Bank in Dubai.

IPE Best CSR Award 2012.

Most Caring Companies of India Award 2012.

Star of the Industry Award for excellence in Banking (PSU) 2012.

16
Golden Peacock Award 2012 in Corporate Governance by the Institute of Directors
on 11th October 2012.

Golden Peacock Award 2012 in National Training Award-2012

Introduction to Advance Product

SBI Advance Product

Statement the Problem

Research objectives

Significance and scope

17
 Introduction to Advance Product
Now a day not all the people have the capacity to fulfill their requirement by their own
earning, thats why they need help from others. For this so many government & private
sector bank provide them money to fulfill their requirement, thats call the Advance Product
(loan product) of the bank. All the banks have so many different types of advance product as
per the requirement of the people or customers. In Lucknow also there are so many banks
those provide loan to the people for different causes.

Types of Advance Product

Home Loan

Educational Loan

Car Loan

Personal Loan

Property Loan

Loan Against Shares\Debentures

Etc.

Now a day a large no. of people are taking loan form different banks. It helps people to fulfill
their need and it really easy to repayment the loan amount with a longer repayment period.

Home Loans

Home loans, also known as mortgages, use the borrower's home for collateral. This home can be
a single-family house up to a four-unit property, as well as a condominium or cooperative

18
unit. Lenders fund home loans, but both the lenders themselves and brokers who act
on behalf of the lenders originate,
History

Home loans came into widespread use in the United States in the boom years of the late 1800s.
Since the average person usually cannot afford to pay cash for something as expensive as a
home, lenders began offering loans for the difference between the purchase price of a home and
the cash down payment supplied by the buyer. These loans were interest-only loans of between
five and 10 years that were due in full at the end of the loan term. Homeowners would refinance
the loan at the end of each term or save up enough cash to pay off the loan in the meantime. The
Great Depression and its resulting foreclosures demanded a move to the modern amortized
mortgage, which configures payments into both principal and interest portions. These 15- to 30-
year loans pay off the home by the end of the loan term

Significance

Without home loans, most Americans could not afford to buy a home. The housing sector and
related industries are a large share of the U.S. gross domestic product (GDP). According to the
National Association of Home Builders, the housing industry as a whole contributes about 17
percent to 18 percent of the nations GDP. In fact, housing was largely responsible for the strong
economic state of the U.S. throughout the early to mid-2000s and disguised an essentially weak
economy, according to an article by MSN Moneys Bill Fleckenstein.

Function

The most common purpose of a home loan is to provide the funds a buyer needs to purchase
a home. Home equity loans allow a homeowner to borrow against the difference between
the homes value and the current loan balance, or equity. Investor loans permit buyers to
purchase homes as rental properties or to fix up and sell at a profit.

19
Types

The two most widely used types of home loans are fixed-rate and adjustable-rate loans.
A fixed-rate loan keeps the same interest rate for the life of the loan, which means that the
principal and interest portions of the monthly payment stay the same.

Adjustable-rate mortgages begin with a lower interest rate for the first few years and then
adjust to market rates after the initial period is over. Caps are placed on how much the rate
can adjust at any one time, as well as on how much the rate can increase over the life of the
loan. This means the principal and interest portions of the monthly payment change
repeatedly through the life of the loan.

Effects

Because home loans are a large share of the financial situation of the majority of Americans,
taking the time to determine the right type of loan and to investigate terms is essential for
any home buyer or owner. Federal law promotes the consumers ability to shop for the best
loan by requiring lenders to give prospective borrowers Good Faith Estimates and Truth In
Lending (TIL) statements that disclose and itemize the terms and costs associated with a
loan.

SBI HOME LOAN

Most Preferred Home Loan provider SBI Bank offers a Home Loan with Attractive Interest Rates
with Latest Schemes and Benefits. SBI also provides a Housing loan with different schemes -
SBI Easy Home Loan | SBI Advantage Home Loan | SBI Home Plus | SBI MY HOME
CAMPAIGN | SBI Housing Finance Scheme

Purpose

20
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

Net Annual Income EMI/NMI Ratio

Upto Rs.2 lacs 40%
Above Rs.2 lac 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.
4. Regular income from all sources

Margin (Special Festival Season Offer)

21
 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 Rates w.e.f 27.2.2008

Floating interest rates

(linked to State Bank Advance Rate - SBAR)

(SBAR: 12.25% p.a.)

Loan Tenor Upto 5 years Above 5 years Above 15 years and

-> and upto 15 years upto 25 years
Upto Rs.30 2.25% below 2.00% below 1.75% below
Lacs SBAR, 10.00% p.a. SBAR, 10.25% p.a. SBAR, 10.50% p.a.
Above 2.00% below 1.75% below 1.50% below
Rs.30 Lacs SBAR, 10.25% p.a. SBAR, 10.50% p.a. SBAR, 10.75% p.a.

Fixed interest rates

Tenure Rate of Interest

(p.a.)*Upto 10 years 12.75%

* Fixed rate loans will be subject to: 'force maejure' clause and interest reset at the end of
every two years on the basis of fixed interest rates prevailing then.

Home Loan Process & various steps involved

There are various steps involved in getting a Home Loan from selecting your property
to filling up the loan application. Following are the various stages in Home Loan:

The first step involved in the process is to find your property which is followed by the
verification of property documents, post that the documents are examined & simultaneously
you can start searching for the lender who can offer the BEST Home Loan Deal after
checking your eligibility criteria.

22
 Know the Home Loan Eligibility: Banks offer the loan amount only after checking
your profile & based on various eligibility criterias like age, income & salary banks lend
you the money.

Select the Best Home Loan after evaluation: Comparing home loan interest rates is
the primary feature in the home loan selection, however other fees & charges like
Application fees, processing fees, legal charges should not be neglected when comparing
various loan offers. To check the interest rates & other charges incurred by various banks,
Deal4Loans has brought in a Home Loan Comparison Chart across various Banks.

for the Loan: After you have selected your lender, you have to fill in the
application form wherein the lender requires complete information about your financial
assets & liabilities; other personal & professional details together with the property details &
its costs.

& Verification Process: You are required to submit the

necessary documents to the bank which will be verified together with the details in the
application.

& default check: Bank checks out the borrowers loan eligibility (through
repayment capacity) & the amount of loan is confirmed. The borrowers repayment capacity
is reached which is based on the income, salary, age, experience & nature of business etc.
Bank also checks credit history through the Cibil Score which plays a critical role in
deciding & approving your loan application. Low Credit Score implies that the bank upfront
rejects your application on the basis of earlier credit defaults; on the other hand high credit
score gives a green signal to your application.

sanctions Loan & Offer letter to the borrower: After the credit appraisal of the
borrower bank decides the final amount & sanctions the loan, the bank further sends an offer
letter to the borrower which constitutes the details like rate of interest, loan tenure &
repayment options etc.

Copy to the Bank: The borrower needs to send an acceptance copy to

the bank after the borrower agrees with the terms & conditions in the offer letter.

checks the legal documents: The bank further asks the legal documents of property
from the borrower to check its authenticity so as to keep them as a security for the loan
amount given. The next step involved is the valuation of the property by the bank which
determines the loan amount sanctioned by the bank.

of agreement & the loan disbursal: The borrower signs the loan agreement &
the bank disburses the loan amount.

23
 Comparative study of Home Loans in India
Bank Floating Prepayment
Per lac EMI Processing Fee
Name Interest rate Charges
State Bank 9.95% Rs.962 Up to 25 lacs : 0.125% Nil
Of India of loan amount
minimum Rs.1000/-
25-75 lacs : Rs.3,250/-
75 & above : 5,000/-
ICICI Bank Scheme I Scheme I 0.50% of loan amount N.A
:10.15% :Rs.975 upto 1 crore
(Fixed 1 yr) (Fixed 1 yr)
Scheme II : Scheme II :
10.15% Rs.975 (Fixed
(Fixed 2yrs) 2yrs)
Scheme III : Scheme III :
10.50% Rs.998 (Fixed
(Fixed 3yrs) 3yrs)
then 10.15% then Rs.975
HDFC Ltd 10.15% Rs.975 0.5% or maximum No
10,000+service tax prepayment
(12.36%) charges shall
be payable for
partial or full
prepayments
irrespective of
the source
HSBC Bank 10.50% - Rs.998 - 1% of the loan amount Nil
10.75% Rs.1015 applied for, subject to a
minimum of Rs 10000
plus service tax. This
fee is payable on
application and is not
refundable
LIC Scheme I : Scheme I : Up to 50 lacs : 10,000 Nil
Housing 10.25% Rs.982 (Fixed +(Service tax)
(Fixed for 2 for 2 yrs) 50 lacs & above :
yrs) Scheme II : 15,000 +(service tax)
Scheme II : Rs.965 (Fixed
10%(Fixed for for 3 yrs)
3 yrs) Scheme III :
Scheme III : Rs.1015
10.75%(Fixed (Fixed for 10
for 10 yrs) yrs)
AXIS Bank 10.25% (Upto Rs.982 (Upto 1% of the Loan Amount Nil
25 Lacs), then 25 Lacs), then
10.50% Rs.998

24
IDBI 10.25% Rs.982 Up to .50%of loan If Balance
amount Transfer then
(Rs 2500 to be collected 2% Otherwise
at login and balance at Nil
the time of sanction )
PNB 10.50% (For Rs.998 (For 0.5% NIL
Housing Salaried/SEP), Salaried/SEP),
Finance 11% (SENP) Rs.1032
(SENP)
ING Vysya 10.75% Rs.1015 0.5% of the loan NIL
amount
Standard 9.99% (Upto Rs.964 (Upto Rs.7500/- + Service tax NIL
Chartered 25Lacs), then 25Lacs), then
10.15%- Rs.975 -
10.25% Rs.982
Citibank 9.75% - Rs.948 - 0.25% or 5,000 + NIL
10.25% (Upto Rs.982 (Upto 12.36%( service tax)
25Lacs), then 25Lacs), then
10% - Rs.965 -
10.50% Rs.998
Deutsche 10.50% Rs.998 12000 + Service Tax Nil
Bank
India Bulls 10.15% (Upto Rs.975 (Upto Up to 30 lacs NIL
25Lacs), then 25Lacs), then 5,000+12.36%(Service
10.75% Rs.1015 tax)
30 lacs & above :
15,000+12.36%(Service
tax)

Federal 10.48% Rs.997 10,000 + Service Tax N.A

Bank
Allahabad 10.20% (Upto Rs.978 (Upto 0.50% of loan amount, NIL
Bank 25Lacs), then 25Lacs), then Maximum Rs. 10,000/-
10.45% Rs.995
Bank of 10.55% (Upto Rs.1002 0.50% (Max. Rs. Nil
Maharastra 25lacs), then (Upto 25lacs), 50,000/-)
10.75% then Rs.1015
Central 10.25% Rs.982 0.50% of the loan Nil
Bank of amount subject to
India maximum of
Rs.20,000/-
Corporation 10.25% Rs.982 0.50% of Loan amount NIL
Bank (Max.Rs.50,000/-)
Bank of 10.25% Rs.982 0.25% of loan amount. Nil
India Min.Rs.1,000 and Max.
Rs.20,000

25
Union Bank 10% Rs,965 Processing charges are NIL
of India 0.50% of the loan
amount subject to
maximum of Rs. 15,000
United 10.75% (upto Rs.1015 (upto 0.50% of the loan N.A
Bank of 25 lacs) then 25 lacs) then amount
India 10.55% Rs.1002
UCO Bank 10.20% Rs.978 0.5% of the loan NIL
amount, minimum
Rs.1500/- & maximum
Rs. 15000/-
Bank of 10.25% Rs.982 Loan upto Rs.30 Lacs - N.A.
Baroda 0.50% (Minimum
Rs.5,000/-)
Above 30 Lacs - 0.40%
(Min. Rs.15,000/- &
Max. Rs.50,000/-)
Canara 10.45% Rs.995
Bank
Oriental 10.25% Rs.982 0.50% of the loan NIL
Bank of amount, subject to
Commerce maximum of Rs.
20000/- plus service tax
Punjab 10.25% Rs.982
National
Bank
Vijaya Bank 10.50% Rs.998 0.25% of loan amount. N.A
Maximum Rs.10000.
Exclusive of Service Tax
Syndicate 10.25% Rs.982 upto Rs.25 lacs - N.A
Bank 0.25% (Min Rs 1000 -
Max Rs 5000)
26 lacs to 75 lacs -
0.55% (Max.Rs.500/-)
above Rs.75 lacs -
0.55% (Max Rs.10000/-
)
Indian 10.25% Rs.982 A flat rate of 0.58% of N.A
Overseas the loan amount-
Bank maximum of Rs.
10,190/- There is no
hidden charge. This is
subject to change from
time to time without
prior intimation.

Data taken from following link: - http://www.housingindia.info/NHBHomeLoanRates.aspx

26
Point of Differentiation
Provision for on the spot "In principle" approval.
Loan sanctioned within 6 days of submission of required documents.
Option to avail Home Loan as a Term Loan or as an Overdraft facility to save on
interest and maximize gains (see SBI MaxGain in the following sections)
Option to club income of your spouse and children to compute eligible loan
amount
Provision to finance cost of furnishing and consumer durables as part of project
cost
Repayment permitted up to 70 years of age
Free personal accident insurance cover up to Rs.40 Lac.
Optional Group Insurance from SBI Life at concessional premium (Upfront
premium 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
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.

27
 Statement of problem

SBI Main Branch, Lucknow allotted my internship is To explore the

possibilities of takeover of Home Loans in Lucknow

To find out what kind of service provide by the competitors in advance
product.

To find out the need and want of the customer and hence formulate the strategy to
level the economy in the society.

How the products are helping the customer.

To know the utility of the product.

To find out the need of the customer in Lucknow region and introduce new
product or facilitate new service in existing product.

Research objectives

Summer Internship is mutually beneficial both for me and for the bank. It gave me
practical exposure and helps me in developing my interpersonal skills and acquiring
on road side skills-

28
 First and foremost objective is to explore the possibilities of Housing loans
in Lucknow
Generating leads of home loans from my collected information through
survey forms

To maintain good relationship with old customer and try to find out their
satisfaction level

To know the competitors market share in Lucknow.

To know what kind of services competitor gives to their customers.

To place SBI Advance Product ahead of the competitors

Switch other banks Home Loan customer to the State

To make the customer aware of the benefits of the product and convince him
to go for SBI Advance Product.

Significance and scope

The geographical scope of the study is restricted to Lucknow only with sample size of 200
people.

All the analysis and suggestions are based on the analysis of the both primary and
secondary data.

Therefore the scope of the study revolves around the following aspects:-

Consumer perception towards SBI Home Loan and services.

Consumer awareness about Housing Finance Product scheme and its benefit.

Aware the Bank about the customer problems, especially in case of Home Loan
Documentation.

29
Research methodology

30
 Research methodology

Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues involved &
conduct situational analysis. The methodology includes the overall research design, sampling
procedure & fieldwork done & finally the analysis procedure. The methodology used in the
study consistent of sample survey using both primary & secondary data. The primary data
has been collected with the help of questionnaire as well as personal observation book,
magazine; journals have been referred for secondary data. The questionnaire has been drafted
& presented by the researcher himself.

Sample Size:

Sample of 200 people was taken into study, and their data was collected

Sampling Technique:

To study the Project, a Simple Random Sampling technique is used.

Data Collection:
Data collection is mainly dealt with the way data is collected. We have
Collected data mainly through two ways-

1. Primary data collection we collected primary data by visiting individual

Houses and meeting with individual persons. We also visited some apartments
in Jopling road, Rajendra nagar and Indra nagar. Here we meet with societies
Managers and try to convince them to arrange a meeting with society persons.
31
 We gave information to them and filled survey sheet by them.

2. Secondary data collection it is collected through secondary sources like data of

sells of the flat from some of my friends and seniors company, Data from
LDA etc. After that we make call to them and make survey. And visited them if
required.

Data Analysis:

After data collection, Im able to analyze customers views, ideas and opinions
related to Advance Product and about SBI Advance Product and from this, SBI
will come to know the customer requirements.

Data Interpretation:

For easy interpretation of data table chart, pie chart, line and bar chart used with some
Quantitative technique. The total no. of respondent is taken as 100% and their response
is denoted in percentage. It is very conspicuous for a person to understand it.

Classification & tabulation of data:

The data thus collected were classified according to the categories,
counting sheets & the summary tables were prepared. The resultant tables
were one dimensional, two dimensional.

Statistical tools used for analysis:

Out of the total respondents, the respondents who responded logically
were taken into account while going into statistical details & analysis of
data. The tools that have been used for analyzing data & inference
drawing are mainly statistical tools like percentage, ranking, averages,
etc.

As per questionnaire and market surveys I have find out different responses from different
people. According to their responses I analyze the findings and draw certain remarks.

32
 Analysis of data

GRAPHICAL REPRESENTATION OF DATA

Q1. On which bank you depend for your regular transaction?

33
 SBI 47 % (94)

Any other PSUs 37.5 % (75)

Private bank 17% (26)
Foreign Bank 1.5% (03)
TOTAL NO. OF PEOPLE 200

Sales

State Bank of India Other PSUs Any private Bank Foreign Bank

It has been observed that approximately 47% correspondents are using the service of SBI
for their daily transaction, around 33.5% of people are using the services of other PSUs
(Mainly Bank of Baroda, PNB, Vijaya Bank, Corporation Bank) for their transaction and
17% of people are using HDFC, ICICI & other Private Bank service respectively in
Lucknow. Only 1.5%people uses foreign banks. It also shows that SBI have the highest
market position in Lucknow as per my sample.

Q2. Are you aware of products & services provided by SBI?

YES 82% (164)

NO 18% (36)
Total No. of People 200

34
 NO
18%

YES
82%

We can say that customers (around 82%) in Lucknow have the idea about the Home loan of
SBI they know about the all current offers of in HOME LOANs, the rest 18% have the idea
about the product they are using. In this 18% most of the people are from typically small
shopkeeper and some govt. employee and Farmers.

Q3. If yes are you aware of the Home loans of SBI?

YES 92%
NO 10%
TOTAL NO. OF PEOPLE 200

35
 % OF PEOPLE

7%

YES
NO
92%

It is clear that most of the people have the idea about the advance product of SBI. Almost all
the 95% people who have the idea about the advance product are the user of SBI product &
service.

Q4. Which bank you prefer for taking loans?

85%(1800)
SBI

ICICI 7%(140)

HDFC 2% (40)

OTHER 1% (20)
TOTAL NO. OF PEOPLE 2000

36
 Sales
2% 1%
12%

SBI
ICICI
HDFC
85% OTHER

According to my sample size 85% of people prefer SBI for loan product, but some people
prefer ICICI, HDFC or OTHER Bank for loan because they are working with that bank & it
is easier for them to get loan from their bank & it easier for them to pay the interest because
it is less as compare to other bank because they are the employee of that bank.

Q5. What do you feel about the services providing by SBI in Home Loan product?

Dissatisfactory 4%

Moderate 52%

Satisfactory 37%

Delighted 7%

TOTAL NO. OF PEOPLE 200

37
 CUSTOMER PERCEPTION TOWARDS THE SERVICE
PROVIDE BY SBI IN ADVANCE PRODUCT

4%
7%

Dissatisfactory
37%
Moderate
52%
Satisfactory
Delighted

From this it is clear that the service provide by SBI in its advance product is good in between
the customer. All of them satisfy with the product provide by SBI. 55% of people said that
the service provide by SBI is good & 43% said it is excellent & just 2% of people said that it
is satisfactory.

Q6. Which features you like most in Loan segments of SBI?

LESS PAPER WORK 3%

ATTRACTIVE INTEREST RATE 35%

TRANSPARENCY 20%

FAST PROCESSING 2%

LONGER REPAYMENT PERIOD 40%

38
 HOME LOANS SERVICES 55%

EMPLOYEE BEHAVIOUR 82%

TOTAL NO. OF PEOPLE 2000

FEATURES LIKE BY CUSTOMER

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Most of the people like the attractive interest rate & longer repayment period. Its easier for
people to repay the whole loan amount with its interest with low interest rate and with longer
repayment period.

39

Findings

Suggestion & Recommendation

Conclusion

40
 PROJECT Findings:
st
From this project it is found that SBI Home Loans having the 1 place in the market at
Lucknow, but HDFC and ICICI also working hard for for improving their market
share in home loan segment so they are the main threat or competitor.

It has been observed that a person first of all come to the SBI for sanctioning their
loan but bad response from SBI force them to switch to the other bank.

All of SBI customers are satisfied with the services provided by the bank.

Many of these customers are well aware of SBI and their home loan product and satisfied
with the low interest rate and longer repayment period of the advance product.

Most of the customers at Lucknow feels that SBI really trying hard for improving
their services.

Approximately 43% of advance product users said that the service of SBI in advance
product is excellent.

A response from customer care is so clear & good.

Many customers have no time to call customer care so that they are not able to know
about the service & features of SBI advance product.

Most customers are shifted from other banks advance product to SBI because of
hidden charges, high interest rate, less repayment period.

Government employees are more concern than private employees for advance
product.

REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT:

LOWEST INTEREST RATES IN INDUSTRY

LONGER REPAYMENT PERIOD THAT IS OF 30 YEARS

41

LOWEST EMI FOR HOME LOANS

INTEREST CHARGED UPON REMAINING OF BALANCE

LONGER REPAYMENT PERIOD

QUICK PROCESSING

Suggestion & Recommendation

Recommendation:

Customer awareness programme is required so that more people should attract
towards advance product.

If there are any kind of hidden charges than that must disclose to customer before
giving loan to them.

SBI must take some steps so that customers can get their loan in time. Like phone
verification by customer care that one customer is got their loan on time or not .It
must be before a certain date so necessary steps can be taken.

SBI should more concern about physical verification rather than phone verification so
it will avoid fraud or cheating.

Advance product selling agents must not give any type of wrong information
regarding advance product.

For the better service new offers would be require.

SBI customer care should more concern about the fastest settlement of customer
problems.

Before deducting or charging any monetary charge SBI must consult with customer.

Agents should be trained, well educated & proper trained to convince the people about
different advance product.

It is the duty of the bank to disclose all the material facts regarding advance product,
like interest charged, repayment period, other types of charges, etc.

Special scheme should be implemented to encourage both customer and agents.

The bank should increase the period for repayment of loan.

42

SBI should more focus on Retaining existing customers.

SBI must focus on Segmentation based on customer knowledge Product
offering based on customer demand.

SBI must take feedbacks of customers regarding features & services.

Conclusion
From the analysis part it can be conclude that customers have a good respond towards SBI
st
advance products in Lucknow. SBI is in 1 position having large number of customers &
providing good services to them. The bank has a wide customer base, so the bank should
concentrate on this to retain these customers.

In present scenario SBI is the largest advance product issuer in India. Within a very short
period of time the achievement made by SBI is excellent, what a normal bank cannot expect,
but it is being done by SBI. It happens due to employee dedication towards the organization,
fastest growing Indian economy, & brand image.

To be the largest advance product issuer, SBI should focus on-

Launch Innovative product

Customized advance products
Better customer services
Fastest customers problem solving techniques
Customer retention
Apart from all the above, SBI believe in providing good customer services to their customers
which is a key factor for success in future.

43
44
 SURVEY FORMAT (EXISTING UNITS)

Name of the apartment

Building / Residential Colony

Address

Builder s Type Private or

Govt, body
(Please Specify)
Person Contacted
Address

Contact No. & email ID

Profession
Income Group
Profession Taken On

45
Bank From which Finance Was
Availed

Amount /
Year of loan availed
Rate of Interest
Do you know SBI Home Loan -Lowest EMI i.e. .Rs.874/-per lac
-Longest repayment period -30 years
-Lowest Intt. Rates 9.95%p.a.
-Processing Charges only Rs. 10001-per
Housing Loan
-No Hidden Charges

Would you like to switch over

your loan to SBI

Survey carried out by

Mr / Mrs.

46
 SOME EXAMPLES OF THE SURVEY CONDUCTED BY OUR
TEAM
Sample 1
Name of the apartment Sahara state
Builiding / Residential Colony

Address 10/104, Deepak apartment sahara state lko

Builder s Type Private or Govt, body Private body

(Please Specify)
Person Contacted AK Nigham
Contact No. & emailid 9839205152
Profession Engineer
Income Group 5 lac
Profession Taken On
Bank From which Finance Was Availed SBI bank
Amount / 30 lac.
Year of loan availed
Rate of Intrest 10%
Do you know SBI Home Loan -Lowest EMI i.e. .Rs.874/-per lac

47
 -Longest repayment period -30 years
-Lowest Intt. Rates 9.95%p.a.
-Processing Charges only Rs. 10001-per
Housing Loan
-No Hidden Charges

Yes, want to switch over

Would you like to switch over your loan
to SBI

Sample 2
Name of the apartment Sahara state
Builiding / Residential Colony

Address 10/204, Deepak apartment ,lko.

Builder s Type Private or Govt, body Private body

(Please Specify)
Person Contacted Dinkar kumar
Contact No. & emailID 9452114080
Profession BDO
Income Group 12 lac
Profession Taken On
Bank From which Finance Was Availed SBI (main branch)
Amount / 26 lac.
Year of loan availed
Rate of Intrest 10%
Do you know SBI Home Loan -Lowest EMI i.e. .Rs.874/-per lac
-Longest repayment period -30 years
-Lowest Intt. Rates 9.95%p.a.

48
 -Processing Charges only Rs. 10001-per
Housing Loan
-No Hidden Charges
Yes, want to switch over
Would you like to switch over your
loantto

Sample 3
Name of the apartment Sahara state
Builiding / Residential Colony

Address 10/301, Deepak Apartment lko.

Builder s Type Private or Govt, body Private body

(Please Specify)
Person Contacted Ramesh chandra
Contact No. & emailID 9792680777
Profession Contracter
Income Group 13 Lac
Profession Taken On
Bank From which Finance Was Availed Bank of India
Amount / 60 lac.
Year of loan availed
Rate of Intrest 10.5%
Do you know SBI Home Loan -Lowest EMI i.e. .Rs.874/-per lac
-Longest repayment period -30 years
-Lowest Intt. Rates 9.95%p.a.

49
 -Processing Charges only Rs. 10001-per
Housing Loan
-No Hidden Charges
Yes , want to switch over
Would you like to switch over your loan
to SBI

50
 References

http://www.sbi.co.in/user.htm

http://www.sbi.co.in/webfiles/uploads/files/1373614553213_SBI_UNABRIDGED_A
NNUAL_REPORT_2012_13_ENGLISH.pdf

http://www.deal4loans.com/home-loans-interest-rates.php

http://www.moneycontrol.com/company-facts/statebankindia/shareholding-
pattern/SBI

http://www.housingindia.info/NHBHomeLoanRates.aspx

http://www.businessdictionary.com/definition/research-
methodology.html#ixzz2bRyCysu7

51