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PROJECT REPORT (17MBAPR407) ON
“A STUDY ON LOANS AND ADVANCES AT STATE BANK OF INDIA”
BY
MANJUNATHA N
1AY17MBA
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI
In partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
Mallika B K Y. Sripadharaju
Assistant Professor Chief Manager
Department of MBA Chamarajpet,
Bangalore- 560018
Department of MBA
Acharya Institute of technology, Soldevanahalli, Hesaragatta Main Road, Bengaluru March 2019
STATE BANK OF INDIA TIPPU SULTAN PALACE ROAD BRANCH, BANGALORE Phone : 26703091,26705011 , 26702833 Fax 26700585, e-mail : bangalore@sbt.co.in
Date : 17.02.
INTERNSHIP CERTIFICATE
This is to certify that Mr Manjunatha N ,USN NO. 1AY17,MBA 26,Acharya Institute of Technology,has undergone an internship with us from 03. 01 .2019 to 16. 02 .2019.
Meanwhile he worked on the project A Study on "Study on Loans and ADvances"with special reference to State Bank Of India.
We found him a self motivated , punctual and hardworking. His performance was efficient.
We wish him Best of luck for his future career.
Fo(STATE^ ~^ ~1:i:a1lf~ BA F^ ~ \NOi^ A
1 ipu su1~alace^ ~ Roa:d,^ I^ Ch Chamarajpet^ f^ Manager (70242) Branch Manager
DECLARATION
I, Manjunatha N, hereby declare that the Project report entitled "A study on Loans and Advances" with reference to " State Bank of India, Bangalore"
prepared by me under the guidance of Mallika B K, faculty of M.B.A
Department , Acharya Institute of Technology and external assistance by Y.
Sripadharaju, Chief Manager, State Bank of India. I also declare that this
Project work is towards the partial fulfillment of the university Regulations for
the award of degree of Master of Business Administration by Visvesvaraya
Technological University, Belagavi. I have undergone a summer project for a
period of Twelve weeks. I further declare that this Project is based on the
original study undertaken by me and has not been submitted for the award of
any degree/diploma from any other University / Institution.
Place: Ban~alore Date : I ;2 / o 1+ / 2-:v Ii
· M-~~~,rJ Signature of the student
ACKNOWLEDGEMENT
I wish to express my sincere thanks to our respected Principal, Dr. Prakash M R, beloved Dean-Academics , Dr. Devarajaiah R M , and deep sense of gratitude to Dr. M M Bagali , HOD, Acharya Institute of Technology, Bengaluru for their kind support and encouragement in completion of the Internship Report.
I would like to thank Mallika B K, Asst. Professor, Department of MBA, Acharya Institute of Technology, Bengaluru and external guide Mr. Y. Sripadharaju, Chief manager, State Bank of India, Bengaluru, who gave me golden opportunity to do this wonderful Project in the esteemed organization, which helped me to learn various concepts.
Finally, I express my sincere thanks to my Parents, Friends and all the Staff of MBA department of AIT for their valuable suggestions in completing this Project Report.
Place: Bangalore Manjunatha N
Date: USN: 1AY17MBA
3.7 Statistical tools 3.8 Limitations of the study 4 DATA ANALYSIS AND INTERPRETATION 29 - 64 4.1 SBI Saral Personal loan 4.2 SBI Housing loan
4.2.1 SBI Home loan
4.2.2 SBI Flexi Home loan
4.2.3 SBI Max-gain loan
4.2.4 SBI Realty Home loan
4.2.5 SBI Freedom loan
4.2.6 Short Term Housing loan
4.3 SBI Education loan 4.4 SBI Property loan 4.5 SBI Easy Travel loan 4.6 SBI Car loan 4.7 SBI Pensioners loan 4.8 SBI Festival loan 4.9 Loans against Shares and Debentures 4.10 Loans for Earnest money deposits 4.11 SBI Scholar loan 4.12 Data analysis and interpretation 4.13 Ratio Analysis 5 FINDINGS, SUGGESTIONS AND CONCLUSION^65 -^68 Bibliography 69 - 70 Reference Annexure 71 - 75
SI. NO. LIST OF TABLES PAGE NO.
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EXECUTIVE SUMMARY
Inside the developing global competition, the productivity of any commercial enterprise challenge depends upon the behavioural aspects of consumers. This subject matter offers with improve product from SBI at Chamarajpet. This assignment report carries 5 one-of-a-kind chapters, the record starts with the introduction to organisation, its region of operation, its business enterprise shape, its achievements etc.
The second chapter is the conceptual background of the study and literature review, the brief idea regarding the advanced products and services provided by the State Bank of India, branch in chamarajapete, Bangalore, where the project is undertaken.
The third chapter contains the research design, methodology adopted in preparing this report is mentioned. It includes the sample procedure, types of data used, data collection methods and need for the study, limitations etc.
The fourth chapter comprehensive coverage of forecasting concepts techniques which shows the analysis of data and interpretation through graphical representation, ratio analysis, data collected from survey.
The fifth chapter deals with the findings, suggestions and conclusion part which is very important after analysis is made. In each of the 5 chapters as defined above every bankruptcy has been scheduled in a way with a purpose to permit the reader to understand the content material effortlessly the report is supported through figures and information anywhere important with a purpose to help the reader in developing a clear out information of the subject.
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CHAPTER-
INTRODUCTION
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In 1949 the Reserve Bank of India was established as the country’s central bank. RBI got the powers and authorities to control the Indian Banks and supervision and licensing powers and also inspection powers.
AFTER INDEPENDENCE:
In the year 1955, Imperial Bank of India was nationalized and renamed as “State Bank of India”. It was established under SBI Act 1955. After that RBI was empowered to force the compulsory merger of the weak banks with the strong banks. And it reduces the number of Banks from 566 in 1951 to about 89 in 1969.In 1969,14 major banks were nationalized and it became 20 in number of total Nationalized banks in India. And for the recommendation of Narasimham Committee, the Banking Regulation Act was amended in 1933 and for these new Private sector banks are opened.
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1.2.2 PRESENT STRUCTURE OF INDIAN BANKING SYSTEM
BANKING STRUCTURE IN INDIA
SCHEDULED BANKS IN INDIA
Scheduled Commercial Banks
Scheduled Co- operative Banks
All India Financial institutions
Nationalised Banks
Private Banks
Regional Rural Banks
National Federation of State Co-operative Banks Limited (NFSCOB)
Rural Co- operative Credit Institution
Urban Co- operative Banks
NABARD
SIDBI
EXIM
IDBI
Short term Structure
Long term Structure
State Co- operative Banks
District Central Co- operative Banks
Primary Agricultur al Credit Societies
State Co- operative Agricultural and Development Banks
Primary Co-operative Agricultural and Rural Development Banks
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1.3.3 FOUNDATION SBI The foundation of Bank of Bengal has the low or minimum liability in India as joint stock Banking. Bank of Bengal has the decision to issue notes and accepted by public for payment revenues within restricted in the graphical area. This note issue might not only for Bank of Bengal but also for the remaining 2 banks i.e. Bank of Bombay and Bank of Madras. It means gathering to the capital of Banks on which proprietor has belongs to pay any interest.
This concept of deposit banking was also an innovation being accepting money for safeguarding by local bankers had not spread as a general habit as in the most parts of the India. But for a long time 3 presidency banks have the right to issue the notes. Bank notes and govt. balance made up the bulk of huge investible resources of the banks.
1.3.4 BUSINESS OF SBI Mainly the SBI business was initially, discounting bills of exchange, other negotiable private security, and maintaining cash notes, loan in restricted to Rs.1 lakh and accommodation period for 3 months only. The security is for these loans was public security treasures, jewelleries, plate or goods ‘not of a perishable nature’ and for these no interest charged above 12%.
Loans against goods like indigo, salt, wooliness, cotton silk goods and opium were also granted but these are only by the way of cash credits gained momentum. Only from 19 century and all commodities including tea, jute and sugar which began to be financed later were either pledged or hypothetical to the bank. Promissory notes were singed by the borrower in the favour of guarantor. Which was in turn endorsed to the bank. Some lendings are prohibited i.e. lending against shares, mortgage of house or land or other real property.
1.3.5 IMPERIAL BANK
The Imperial Bank during the three and a half decades of its existence recorded an impressive growth in terms of offices, reserves, deposits, investments and advances, the increases in some cases amounting to more than six-fold. The financial status and security inherited from its forerunners no doubt provided a firm and durable platform. But the lofty traditions of banking which the Imperial Bank consistently maintained and the high standard of integrity it observed in its operations inspired confidence in its depositors that no other bank in India could perhaps then equal. All these enabled the Imperial Bank to
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acquire a pre-eminent position in the Indian banking industry and also secure a vital place in the country's economic life.
When India attained freedom, the Imperial Bank had a capital base (including reserves) of Rs.11.85 crores, deposits and advances of Rs.275.14 crores and Rs.72.94 crores respectively and a network of 172 branches and more than 200 sub offices extending all over the country.
1.3.6 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.
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1.3.7 DIFFERENT PRODUCTS OF SBI
DEPOSIT LOANS CARDS DIFFERENT
CREDIT
SavingsAccount HomeLoans Consumer CARDS Cards
SBIInternational cards
Life Plus Senior Citizens Savings Account
LoanAgainstPro perty
Credit Card SBI Gold cards
Fixed Deposits
PersonalLoans Travel Card SBI GoldMaster cards
Security Deposits
Car Loan Debit Cards Your City YourCards
Recurring Deposits
Loansagainst Securities
Commercial Cards
Tax-Saver Fixed Deposit
TwoWheeler Corporate Cards
PartnershipCards
Salary Account Pre-approved Loans
Prepaid Card
AdvantageWoman SavingsAccount
Retail Asset Purchase Card SBI Employee Cards
Rural Savings Account
FarmerFinance Distribution Cards People'sSavings Account
BusinessInstallment L 0 ans
Business Card SBI Advantage Cards
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1.3.8 MERGING WITH OTHER BANKS
In 1st^ April 2017 the State Bank of India has merged with the six Banks, that is the State of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and Bharatiya Mahila Bank.
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 Associates and Subsidiaries
1.3.9 COMPETITORS OF STATE BANK OF INDIA
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 AXIS Bank Kotak Mahindra Bank Centurion Bank of Punjab
Top Performing Foreign Banks
Citibank Standard Chartered HSBC Bank
