47675185 Comparative Analysis of SBI HDFC Bank

8/13/2019 47675185 Comparative Analysis of SBI HDFC Bank

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A

Project Study Report

On

Training Undertaken at

Titled

Comparative Analysis of SBI & HDFC Bank Regarding Personal Loan

S!"mitted in partial f!lfillment for t#e A$ard of degree

Of

Master of Business Administration

2008-2010

Institute of Management !ec"no#ogy

Su$mitted $y% Su$mitted !o%


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Ranjeet Singh Mrs Manishi Sharma


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A&'(O)*+, +M+(!

The path to success is never so smooth and simple to achieve. However, our

learnings and motivation by our close ones and our mentors helps us to reach

beyond our potential. My Project would remain partial without acknowledging

people who encouraged me to achieve a milestone.

I e press my sincere gratitude to Mr. SHELENDAR SINGH !or giving me anopportunity to discover more knowledge through practical learning by organi"ing

immensely knowledgeable Project !or the students o! M#$ % nd year.

I privileged to pay my sincere gratitude towards Mr. DEEPAK VIJAYVARGYIA !or

providing their valuable guidance and encouragement throughout the Project !or

keeping my morale up and making it possible to complete and submit this report in

time. I am e&ually grate!ul to all my other teachers !or their complete support.It would be un!air on my part i! I do not thank my colleges !or their continuous help

without which this work could never have been accomplished. They made me

reali"e the importance o! teamwork and also the leadership skills. I am grate!ul to

all o! them standing with me and supporting me in this project.


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PREFACE

This project report has been prepared as per the re&uirement o! the syllabus o!

M#$ course structure under which the students are the re&uired to undertake

project.

It was a !irst hand e perience !or us as that we were e posed to the pro!essionalset'up and were !acing the market, which was really a great e perience.

(uring project period, I had very touching e periences. )hen business is involved,

e periences counts a lot, as we know, e perience are an instrument, which leads

towards success.

*ow I take this opportunity to present the project report and sincerely hope that it

will be as much knowledge enhancing to the readers as it was to use during the

!ieldwork and the compilation o! the report.


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EXECUTIVE SUMMARY

Their should be comparison between two biggest bank o! India namely

+tate #ank o! India +#I- and Housing (evelopment inancial /orporation

H( /- on Personal loan provided by them.

Today Personal loan is necessity !or !ul!ill the re&uirement o! !amily and

provide good li!e. 0veryone wants a li!e in which all !acilities are present

which are so costly so they move towards to various banks both public as

well as private bank !or loan.

+#I banks is basically pre!er by most o! the people who are in government

jobs1public sectors because o! 2'

3. Ta rebate

%. 4ack o! much !unds

5. Interest rate

H( / #ank also choice o! people because o!2'

3. 0asiness and 4ow documentation

%. +ervices

5. /ooperative and 6elationship

In this project study peoples are satis!ied by both the banks but also wants

more things like 7pdating o! services, technological enhancement and

ethics. I! all the banks !ocus on these things they get better growth in

Personal loan as well as better response o! people as today Personal loanis re&uired !or !ul!ill the re&uirement o! li!e.

TABLE OF CONTENT


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Contents !

3. Introduction to the Industry

%. History o! #anking in India

5. Introduction to the organi"ation

8. 6esearch Methodology

Title o! the +tudy

(uration o! the Project

9bjective o! the study

Type o! the 6esearch

+ample +i"e and Method o! selecting +amples

+cope o! the +tudy 4imitation o! the +tudy

:. acts and indings

;. $nalysis and Interpretation

. $ppendi

3?. #ibliography


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INTRODUCTION OF BANKING INDUSTRY

B"n#

$ $"n# is license by a government . Its primary activity is to lend money.

Many other !inancial activities were allowed over time. or e ample banks

are important players in !inancial markets and o!!er !inancial services such

as investment !unds In some countries such as @ermany , banks have

historically owned major stakes in industrial corporations while in other

countries such as the 7nited +tates banks are prohibited !rom owning non'

!inancial companies. In Aapan , banks are usually the ne us o! a cross'share

holding entity known as the "aibatsu . In rance , banc assurance isprevalent, as most banks o!!er insurance services and now real estate

services- to their clients.

The level o! government regulation o! the banking industry varies widely,

with counties such as Iceland , the 7nited Bingdom and the 7nited +tates

having relatively light regulation o! the banking sector, and countries such

as /hina having relatively heavier regulation including stricter regulations

regarding the level o! reserves -.

History

#anks have in!luenced economies and politics !or centuries. Historically, the

primary purpose o! a bank was to provide loans to trading companies.

#anks provided !unds to allow businesses to purchase inventory, and

collected those !unds back with interest when the goods were sold. orcenturies, the banking industry only dealt with businesses, not consumers.

#anking services have e panded to include services directed at individuals,

and risk in these much smaller transactions are pooled..
http://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Zaibatsuhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/Icelandhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Reserve_requirementshttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Zaibatsuhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/Icelandhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Reserve_requirements


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Or%&%n o' t(e )or*

Silver drachm coin from Trapezus, 4th century BC

The name bank derives !rom the Italian word banco Cdesk1benchC, used

during the 6enaissance by lorentine bankers, who used to make their

transactions above a desk covered by a green tablecloth. However, there

are traces o! banking activity even in ancient times.

ABOUT BANKING !

+ection : b- o! the #anking 6egulation $ct, 3>8>

de!ines banking as Dthe accepting, !or the purpose o! lending or

investment, o! deposits o! money !rom the public, repayable on demand or

otherwise, and withdrawal by che&ue, dra!t, order or otherwise.E

+ection : c- o! the #anking 6egulation $ct, 3>8> de!ines a banking company as

Fany company which transacts the business o! banking in IndiaE.
http://en.wikipedia.org/wiki/Italian_languagehttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Florencehttp://en.wikipedia.org/wiki/File:Trapezus.pnghttp://en.wikipedia.org/wiki/Italian_languagehttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Florence


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De'%n%t%on o' B"n#%n& !

The de!inition o! a bank varies !rom country to country.

7nder En&+%s( ,o--on +") , a banker is de!ined as a person who carries

on the business o! banking, which is speci!ied as2

/onducting current accounts !or his customers Paying che&ues drawn on him, and /ollecting che&ues !or his customers.

The borrowing, raising or taking up o! money, the lending or advancing o! moneyeither with or without securityG

$cting as agents !or any government or local authority or any other person or

persons.

/ontracting !or public and private loans and negotiating and issuing the same.

The e!!ecting, insuring, guaranteeing, underwriting, participating in managing and

carrying out o! any issue, public or private, o! state, municipal or other loans or o!

shares, stock, debentures or debenture stock o! any company, corporation or

association and the lending o! money !or the purpose o! any such issue.
http://en.wikipedia.org/wiki/English_common_lawhttp://en.wikipedia.org/wiki/English_common_law


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E "-/+es o' st"t0tor1 *e'%n%t%ons 2

Cbanking businessC means the business o! receiving money on current or

deposit account, paying and collecting che&ues drawn by or paid in by

customers, the making o! advances to customers, and includes such other

business as the $uthority may prescribe !or the purposes o! this $ctG

#anking $ct +ingapore-, +ection %, Interpretation-.

Cbanking businessC means the business o! either or both o! the !ollowing2

1. 6eceiving !rom the general public money on current, deposit, savings or

other similar account repayable on demand or within less than 5 months ...

or with a period o! call or notice o! less than that periodG

2. Paying or collecting che&ues drawn by or paid in by customers

3. +ince the advent o! 0 TP9+ 0lectronic unds Trans!er at Point 9!

+ale-, direct credit, direct debit and internet banking, the che&ue has lost its

primacy in most banking systems as a payment instrument. This has led

legal theorists to suggest that the che&ue based de!inition should be

broadened to include !inancial institutions that conduct current accounts !or

customers and enable customers to pay and be paid by third parties, even i!

they do not pay and collect che&ues
http://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/EFTPOS


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Commercial role:-

The commercial role o! banks is not limited to banking, and includes2

issue o! banknotes promissory notes issued by a banker and payable to

bearer on demand- processing o! payments by way o! telegraphic trans!er, 0 TP9+ ,

internet banking or other means issuing bank dra!ts and bank che&ues accepting money on term deposit lending money by way o! overdra!t , installment loan or otherwise providing documentary and standby letters o! credit trade !inance -,

guarantees, per!ormance bonds , securities underwriting commitments and

other !orms o! o!!'balance sheet e posures sa!ekeeping o! documents and other items in sa!e deposit bo es currency e change acting as a J!inancial supermarketJ !or the sale, distribution or brokerage,

with or without advice, o! insurance, unit trusts and similar !inancial products
http://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Promissory_noteshttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Overdrafthttp://en.wikipedia.org/wiki/Letters_of_credithttp://en.wikipedia.org/wiki/Trade_financehttp://en.wikipedia.org/wiki/Performance_bondhttp://en.wikipedia.org/wiki/Safe_deposit_boxhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Promissory_noteshttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Overdrafthttp://en.wikipedia.org/wiki/Letters_of_credithttp://en.wikipedia.org/wiki/Trade_financehttp://en.wikipedia.org/wiki/Performance_bondhttp://en.wikipedia.org/wiki/Safe_deposit_box


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Economic functions:-

The economic !unctions o! banks include2

1. Issue o! money, in the !orm o! banknotes and current accounts subjectto che&ue or payment at the customerJs order. These claims on banks can

act as money because they are negotiable and1or repayable on demand,

and hence valued at par. They are e!!ectively trans!erable by mere delivery,

in the case o! banknotes , or by drawing a che&ue that the payee may bank

or cash.

2. *etting and settlement o! payments K banks act as both collection and

paying agents !or customers, participating in interbank clearing andsettlement systems to collect, present, be presented with, and pay payment

instruments. This enables banks to economise on reserves held !or

settlement o! payments, since inward and outward payments o!!set each

other. It also enables the o!!setting o! payment !lows between geographical

areas, reducing the cost o! settlement between them.

3. /redit intermediation K banks borrow and lend back'to'back on their

own account as middle men

4. /redit &uality improvement K banks lend money to ordinary commercial

and personal borrowers ordinary credit &uality-, but are high &uality

borrowers. The improvement comes !rom diversi!ication o! the bankJs assets

and capital which provides a bu!!er to absorb losses without de!aulting on its

obligations.

5. Maturity trans!ormation K banks borrow more on demand debt and

short term debt, but provide more long term loans. In other words, they

borrow short and lend long. )ith a stronger credit &uality than most other

borrowers, banks can do this by aggregating issues e.g. accepting deposits

and issuing banknotes- and redemptions e.g. withdrawals -.
http://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Asset_liability_mismatchhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Asset_liability_mismatch


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La of !an"in#:-

#anking law is based on a contractual analysis o! the relationship between

the bank de!ined above- and the customer Lde!ined as any entity !or which

the bank agrees to conduct an account.

The law implies rights and obligations into this relationship as !ollows2

3. The bank account balance is the !inancial position between

the bank and the customer2 when the account is in credit, the bank owes the

balance to the customerG when the account is overdrawn, the customer

owes the balance to the bank.

%. The bank agrees to pay the customerJs che&ues up to the

amount standing to the credit o! the customerJs account, plus any agreed

overdra!t limit.

5. The bank may not pay !rom the customerJs account without a

mandate !rom the customer, e.g. a che&ue drawn by the customer.

8. The bank agrees to promptly collect the che&ues deposited

to the customerJs account as the customerJs agent, and to credit the

proceeds to the customerJs account.

:. The bank has a right to combine the customerJs accounts,

since each account is just an aspect o! the same credit relationship.

6. The bank has a lien on che&ues deposited to the customerJs

account, to the e tent that the customer is indebted to the bank.


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Entry re#ulation:-

/urrently in most jurisdictions commercial banks are regulated by

government entities and re&uire a special bank licence to operate.

7sually the de!inition o! the business o! banking !or the purposes o!

regulation is e tended to include acceptance o! deposits, even i! they are

not repayable to the customerJs orderLalthough money lending, by itsel!, is

generally not included in the de!inition.

7nlike most other regulated industries, the regulator is typically also a

participant in the market, i.e. a government'owned central- bank. /entral

banks also typically have a monopoly on the business o! issuing

$"n#notes . However, in some countries this is not the case. In the 7B, !or

e ample, the F%n"n,%"+ Ser2%,es A0t(or%t1 licenses banks, and some

commercial banks such as the B"n# o' S,ot+"n* - issue their own

$"n#notes in addition to those issued by the B"n# o' En&+"n* , the 7B

governmentJs central bank.

+ome types o! !inancial institution, such as $0%+*%n& so,%et%es and ,re*%t 0n%ons , may be partly or wholly e empt !rom bank licence re&uirements,

and there!ore regulated under separate rules.
http://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Financial_Services_Authorityhttp://en.wikipedia.org/wiki/Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Building_Societyhttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Financial_Services_Authorityhttp://en.wikipedia.org/wiki/Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Building_Societyhttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Credit_unions


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The re&uirements !or the issue o! a bank licence vary between jurisdictions

but typically include2

3. Minimum capital

%. Minimum capital ratio

J it and ProperJ re&uirements !or the bankJs controllers, owners, directors,

and1or senior o!!icersThe re&uirements !or the issue o! a bank licence vary

between jurisdictions but typically include2

5. J it and ProperJ re&uirements !or the bankJs controllers,

owners, directors, and1or senior o!!icers

8. $pproval o! the bankJs

5. #usiness plan as being su!!iciently prudent.

The economic !unctions o! banks include2

6. Issue o! money, in the !orm o! $"n#notes and current accounts

subject to ,(e30e or payment at the customerJs order. These claims on

banks can act as money because they are negotiable and1or repayable ondemand, and hence valued at par. They are e!!ectively trans!erable by mere

delivery, in the case o! $"n#notes , or by drawing a che&ue that the payee

may bank or cash.

7. *etting and settlement o! payments K banks act as both collection

and paying agents !or customers, participating in interbank clearing and

settlement systems to collect, present, be presented with, and pay payment

instruments. This enables banks to economise on reserves held !or

settlement o! payments, since inward and outward payments o!!set each

other. It also enables the o!!setting o! payment !lows between geographical

areas, reducing the cost o! settlement between them.

8. /redit intermediation K banks borrow and lend back'to'back on their

own account as middle men

9. /redit &uality improvement K banks lend money to ordinary

commercial and personal borrowers ordinary credit &uality-, but are high

&uality borrowers. The improvement comes !rom diversi!ication o! the bankJs
http://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Banknotes


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assets and capital which provides a bu!!er to absorb losses without

de!aulting on its obligations. However, banknotes and deposits are

generally unsecuredG i! the bank gets into di!!iculty and pledges assets as

security, to raise the !unding it needs to continue to operate, this puts the

note holders and depositors in an economically subordinated position.

1 . M"t0r%t1 tr"ns'or-"t%on 2'#anks borrow more on demand debt and

short term debt, but provide more long term loans. In other words, they

borrow short and lend long. )ith a stronger credit &uality than most other

borrowers, banks can do this by aggregating issues e.g. accepting deposits

and issuing banknotes- and redemptions e.g. withdrawals and redemptions

o! banknotes-, maintaining reserves o! cash, investing in marketable

securities that can be readily converted to cash i! needed, and raising

replacement !unding as needed !rom various sources e.g. wholesale cash

markets and securities markets-.

#anking law is based on a contractual analysis o! the relationship between

the bank de!ined above- and the C0sto-er ! de!ined as any entity !or

which the bank agrees to conduct an account.

The law implies rights and obligations into this relationship as !ollows2

33.. The bank agrees to promptly collect the che&ues deposited to the

customerJs account as the customerJs agent, and to credit the proceeds to

the customerJs account.

3% . The banks have a right to combine the customerJs accounts, since

each account is just an aspect o! the same credit relationship.

35. The bank has a lien on che&ues deposited to the customerJs account,

to the e tent that the customer is indebted to the bank.

38. The bank must not disclose details o! transactions through the

customerJs accountLunless the customer consents, there is a public duty to

disclose, the bankJs interests re&uire it, or the law demands it.
http://en.wikipedia.org/wiki/Asset_liability_mismatchhttp://en.wikipedia.org/wiki/Lienhttp://en.wikipedia.org/wiki/Asset_liability_mismatchhttp://en.wikipedia.org/wiki/Lien


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3: . The banks must not close a customerJs account without reasonable

notice, since che&ues are outstanding in the ordinary course o! business !or

several days.

These implied contractual terms may be modi!ied by e press agreement

between the customer and the bank. The statutes and regulations in !orce

within a particular jurisdiction may also modi!y the above terms and1or

create new rights, obligations or limitations relevant to the bank'customer

relationship.

/urrently in most jurisdictions commercial banks are regulated by

government entities and re&uire a special bank licence to operate.

7sually the de!inition o! the business o! banking !or the purposes o!

regulation is e tended to include acceptance o! deposits, even i! they are

not repayable to the customerJs orderLalthough money lending, by itsel!, is

generally not included in the de!inition.

7nlike most other regulated industries, the regulator is typically also a

participant in the market, i.e. a government'owned central- bank. /entralbanks also typically have a monopoly on the business o! issuing banknotes .

However, in some countries this is not the case. In the 7B, !or e ample, the

inancial +ervices $uthority licences banks, and some commercial banks

such as the #ank o! +cotland - issue their own banknotes in addition to

those issued by the #ank o! 0ngland , the 7B governmentJs central bank.

+ome types o! !inancial institution, such as building societies and credit

unions , may be partly or wholly e empt !rom bank licence re&uirements, and

there!ore regulated under separate rules.
http://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Financial_Services_Authorityhttp://en.wikipedia.org/wiki/Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Building_Societyhttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Financial_Services_Authorityhttp://en.wikipedia.org/wiki/Bank_of_Scotlandhttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bank_of_Englandhttp://en.wikipedia.org/wiki/Building_Societyhttp://en.wikipedia.org/wiki/Credit_unionshttp://en.wikipedia.org/wiki/Credit_unions


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H%stor1 o' B"n#%n& %n In*%"

The !irst bank in India, though conservative, was established in 3


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In 3=;: $llahabad #ank was established and !irst time e clusively by Indians,

Punjab *ational #ank 4td. was set up in 3=>8 with head&uarters at 4ahore.

#etween 3>?; and 3>35, #ank o! India, /entral #ank o! India, #ank o! #aroda,

/anara #ank, Indian #ank, and #ank o! Mysore were set up. 6eserve #ank o!

India came in 3>5:.

(uring the !irst phase the growth was very slow and banks also e perienced

periodic !ailures between 3>35 and 3>8=. There were appro imately 33?? banks,

mostly small. To streamline the !unctioning and activities o! commercial banks, the

@overnment o! India came up with The #anking /ompanies $ct, 3>8> which was

later changed to #anking 6egulation $ct 3>8> as per amending $ct o! 3>;: $ct

*o. %5 o! 3>;:-. 6eserve #ank o! India was vested with e tensive powers !or the

supervision o! banking in India as the /entral #anking $uthority.

P("se

@overnment took major steps in this Indian #anking +ector 6e!orm a!ter

independence. In 3>::, it nationali"ed Imperial #ank o! India with e tensive

banking !acilities on a large

scale especially in rural and semi'urban areas. It !ormed +tate #ank o! India to act

as the principal agent o! 6#I and to handle banking transactions o! the 7nion and

+tate @overnments all over the country.

+even banks !orming subsidiary o! +tate #ank o! India was nationali"ed in 3>;? on

3>th Auly, 3>;>, major process o! nationali"ation was carried out. It was the e!!ort


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o! the then Prime Minister o! India, Mrs. Indira @andhi.38 major commercial banks

in the country were nationali"ed.

+econd phase o! nationali"ation Indian #anking +ector 6e!orm was carried out in

3>=? with seven more banks. This step brought =?N o! the banking segment in

India under @overnment ownership.

The !ollowing are the steps taken by the @overnment o! India to 6egulate

#anking Institutions in the /ountry2'

3>8>2 0nactment o! #anking 6egulation $ct.

3>::2 *ationali"ation o! +tate #ank o! India.

3>:>2 *ationali"ation o! +#I subsidiaries.

3>;32 Insurance cover e tended to deposits.

3>;>2 *ationali"ation o! 38 major banks.

3>=?2 *ationali"ation o! seven banks with deposits over %?? crore.

$!ter the nationali"ation o! banks, the branches o! the public sector bank India

raised to appro imately =??N in deposits and advances took a huge jump by

33,???N.


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INTRODUCTION TO THE ORGANI4ATION

BANKING SYSTEM IN INDIA

The #anking +ystem in India consists o!2

3. 6eserve #ank %. (evelopment #anks

5. Public +ector #ank. 8. oreign #anks :. Private +ector #anks

;. /ooperative #anks58. It was nationali"ed in 3>8=.


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6eserve #ank o! India is the bank that issues and regulates the issue o! currency

in India .The banker to the @overnment o! India and the +tate governments. It

manages the public debt. It has the obligation to transact the banking business o!

the /entral @overnment. It undertakes to accept money on behal! o! the

@overnment and make payment on its behal!. The bankers bank. /ommercial

banks maintain their current account with the 6eserve #ank o! India.

The bank that manages the volume o! credit created by the commercial banks to

ensure price stability.

The bank that manages the e ternal value o! the currency Indian rupee-.

De2e+o/-ent B"n#s !

These were set up to give long term !inance !or the development o! the country.

These are the Industrial inance /orporation o! India and the Industrial

(evelopment #ank o! India, The Industrial 6econstruction #ank o! India and the

*ational #ank !or $griculture and 6ural (evelopment. $ !ormer development

bank, the Industrial /redit and Investment /orporation o! India 4td. by a reverse

merger in %??%,became a normal commercial bank.It is e pected that the other

development banks, having outlived their utility would also be either converted to

commercial banks or merged with commercial banks.

P0$+%, Se,tor B"n#s !

These are banks which the @overnment either owns or has a majority stake in it.

The largest is the +tate #ank o! India which was !ormed by the merger o! the

Presidency #anks K the #ank o! #engal, the #ank o! #ombay and the #ank o!

Madras in 3>%3. It was then known as the Imperial #ank. It was nationali"ed in


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3>:: by the passing o! the +tate #ank o! India $ct, 3>::. It has seven

subsidiaries or associates.

Fore%&n B"n#s !

These are branches o! banks incorporated outside India. In 3>>:1 >;

many other !oreign banks optimistic in view o! Indias liberali"ation- opened

branches in India. However, a!ter banking began to become increasingly

competitive and margins began to be s&uee"ed coupled with large non

per!orming assets, many banks closed their branches

Pr%2"te Se,tor B"n#s !

These are banks which are not government owned or controlled. Their sharesare !reely traded in the +tock Markets.

Coo/er"t%2e B"n#s !

/ooperative #anks are those that are created by a group o! individual to support

either a community or a religious group. They operate in metropolitan, urban and

semi urban centers to cater to the needs o! small borrowers.

Re&%on"+ R0r"+ B"n#s !

These came into being on 9ctober %, 3>


25/101

to bridge the gap in rural credit granting loans and advances to small and marginal

!armers, artisans, small entrepreneur and persons o! small means engaged in

trade, commerce, industry or other productive ,activities within their area o!

operation.

Lo,"+ Are" B"n#s !

4ocal $rea #anks came into e istence in 3>>> and licenses were given !or these

banks as it was !elt that regular commercial banks were not !inancial the rural1

agricultural sector ade&uately. 4icenses were given to open branches in three

districts. #ranches in urban1 semi urban areas were granted only a!ter ten

branches were established in rural areas1 villages.


26/101

INTRODUCTION OF SBI BANK

Se,tors B"n#s

Centr"+ B"n# ! 6eserve #ank o! India

N"t%on"+%5e*

B"n#s !

+tate #ank o! India 6 $llahabad #ank 6 $ndhra #ank 6 #ank o!

#aroda 6 #ank o! India 6 #ank o! Maharashtra 6 /anara #ank ,

/entral #ank o! India , /orporation #ank , (ena #ank , Indian

#ank , Indian 9verseas #ank , 9riental #ank o! /ommerce ,

Punjab +ind #ank , Punjab *ational #ank , +yndicate #ank ,

I(#I #ank, 7nion #ank o! India , 7nited #ank o! India , 7/9

#ank , Oijaya #ank.

,

Pr%2"te B"n#s ! $ is #ank , #ank o! 6ajasthan #harat 9verseas #ank

/atholic +yrian #ank /enturion #ank o! Punjab /ity 7nion

#ank .(evelopment /redit #ank (hanalakshmi #ank ederal

#ank @anesh #ank o! Burundwad H( / #ank I/I/I #ank

IndusInd #ank I*@ Oysya #ank Aammu Bashmir#ank Barnataka #ank 4imited Barur Oysya #ank Botak

Mahindra #ank 4akshmi Oilas #ank *ainital #ank 6atnakar

#ank +#I /ommercial and International #ank +outh Indian

#ank Tamilnad Mercantile #ank 4td. .

Fore%&n

B"n#s !

/itibank H+#/ +tandard /hartered

Re&%on"+

R0r"+ B"n#s !

+outh Malabar @ramin #ank

Coo

/er"t%

2e

B"n#s

!

The $ndaman and *icobar +tate /o'operative #ank 4td. The

$runachal Pradesh +tate co'operative $pe #ank 4td. The

$ssam /o'operative $pe #ank 4td The #ihar +tate /o'

operative #ank 4td. The /handigarh +tate /o'operative #ank4td.
http://en.wikipedia.org/w/index.php?title=Ganesh_Bank_of_Kurundwad&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ganesh_Bank_of_Kurundwad&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ING_Vysya_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Lakshmi_Vilas_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Nainital_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Nainital_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ratnakar_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ratnakar_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Commercial_and_International_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Commercial_and_International_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=South_Indian_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=South_Indian_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tamilnad_Mercantile_Bank_Ltd.&action=edit&redlink=1http://en.wikipedia.org/wiki/Standard_Charteredhttp://en.wikipedia.org/w/index.php?title=Ganesh_Bank_of_Kurundwad&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ING_Vysya_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Lakshmi_Vilas_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Nainital_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ratnakar_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Ratnakar_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Commercial_and_International_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=South_Indian_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=South_Indian_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tamilnad_Mercantile_Bank_Ltd.&action=edit&redlink=1http://en.wikipedia.org/wiki/Standard_Chartered


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HISTORY OF SBI BANK !

The evolution o! +tate #ank o! India can be traced back to the !irst decade o! the

3>th century. It began with the establishment o! the #ank o! /alcutta in /alcutta,

on % Aune 3=?;. The bank was redesigned as the #ank o! #engal, three yearslater, on % Aanuary 3=?>. It was the !irst ever joint'stock bank o! the #ritish India,

established under the sponsorship o! the @overnment o! #engal. +ubse&uently,

the #ank o! #ombay established on 3: $pril 3=8?- and the #ank o! Madras

established on 3 Auly 3=85- !ollowed the #ank o! #engal.

$n important turning point in the history o! +tate #ank o! India is the launch o! the

!irst ive Qear Plan o! independent India, in 3>:3. The Plan aimed at serving the

Indian economy in general and the rural sector o! the country, in particular. 7ntil

the Plan, the commercial banks o! the country, including the Imperial #ank o! India,

con!ined their services to the urban sector. Moreover, they were not e&uipped to

respond to the growing needs o! the economic revival taking shape in the rural

areas o! the country. There!ore, in order to serve the economy as a whole and

rural sector in particular.

The $ll India 6ural /redit +urvey /ommittee proposed the take over o! theImperial #ank o! India, and integrating with it, the !ormer state'owned or state'

associate banks. +ubse&uently, an $ct was passed in the Parliament o! India in

May 3>::. $s a result, the +tate #ank o! India +#I- was established on 3 Auly

3>::. This resulted in making the +tate #ank o! India more power!ul, because as

much as a &uarter o! the resources o! the Indian banking system were controlled

directly by the +tate. 4ater on, the +tate #ank o! India +ubsidiary #anks- $ct was

passed in 3>:>.

The +tate #ank o! India emerged as a pacesetter, with its operations carried out by

the 8=? o!!ices comprising branches, sub o!!ices and three 4ocal Head 9!!ices,

inherited !rom the Imperial #ank. Instead o! serving as mere repositories o! the

communityJs savings and lending to creditworthy parties, the +tate #ank o! India

catered to the needs o! the customers, by banking purpose!ully.


28/101

St"te B"n# o' In*%" +#I- 4+0 2+#I( - is the largest bank in India.

The bank traces its ancestry back through the Imperial #ank o! India to the

!ounding in 3=?; o! the #ank o! /alcutta , making it the oldest commercial bank in

the Indian +ubcontinent . The @overnment o! India nationalised the Imperial #ank

o! India in 3>:: , with the 6eserve #ank o! India taking a ;?N stake, and renamed

it the +tate #ank o! India. In %??=, the @overnment took over the stake held by the

6eserve #ank o! India.

+#I provides a range o! banking products through its vast network in India and

overseas, including products aimed at *6Is . )ith an asset base o! R3%; billion and

its reach, it is a regional banking behemoth. +#I has laid emphasis on reducing thehuge manpower through @olden handshake schemes, which led to a !light o! its

best and brightest managers which took to retirement allowances and then went

on the become senior managers at new private sector banks, and computeri"ing

its operations.

The roots o! the +tate #ank o! India rest in the !irst decade o! 3>th century, when

the #ank o! /alcutta , later renamed the #ank o! #engal , was established on %

Aune 3=?; . The #ank o! #engal and two other Presidency banks, namely, the

#ank o! #ombay incorporated on 3: $pril 3=8? - and the #ank o! Madras

incorporated on 3 Auly 3=85 -.. These three banks received the e clusive right to

issue paper currency in 3=;3 with the Paper /urrency $ct, a right they retained

until the !ormation o! the 6eserve #ank o! India . The Presidency banks

amalgamated on %< Aanuary 3>%3, and the reorgani"ed banking entity took as its

name Imperial #ank o! India . The Imperial #ank o! India continued to remain a joint

stock company.

Pursuant to the provisions o! the +tate #ank o! India $ct 3>::-, the 6eserve #ank

o! India , which is IndiaJs central bank , ac&uired a controlling interest in the Imperial

#ank o! India. 9n 5? $pril 3>:: the Imperial #ank o! India became the +tate #ank

o! India.In 3>:> the @overnment passed the +tate #ank o! India +ubsidiary

#anks- $ct, enabling the +tate #ank o! India to take over eight !ormer +tate'

associated banks as its subsidiaries. 9n +ept 35 , %??=, +tate #ank o! +aurashtra ,

one o! its $ssociate #anks, merged with +tate #ank o! India.
http://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/en-gb/pricesnews/prices/Trigger/genericsearch.htm?bsg=true&ns=SBIDhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/1955http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/June_2http://en.wikipedia.org/wiki/June_2http://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/April_15http://en.wikipedia.org/wiki/1840http://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/July_1http://en.wikipedia.org/wiki/1843http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/January_27http://en.wikipedia.org/wiki/1921http://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/April_30http://en.wikipedia.org/wiki/1955http://en.wikipedia.org/wiki/Sept_13http://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/en-gb/pricesnews/prices/Trigger/genericsearch.htm?bsg=true&ns=SBIDhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/1955http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Golden_handshakehttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/June_2http://en.wikipedia.org/wiki/June_2http://en.wikipedia.org/wiki/1806http://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/April_15http://en.wikipedia.org/wiki/1840http://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/July_1http://en.wikipedia.org/wiki/1843http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/January_27http://en.wikipedia.org/wiki/1921http://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/April_30http://en.wikipedia.org/wiki/1955http://en.wikipedia.org/wiki/Sept_13http://en.wikipedia.org/wiki/State_Bank_of_Saurashtra


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$ssociate !an"s:-

There are si associate banks that !all under +#I, and together these si banks

constitute the +tate #ank @roup. $ll use the same logo o! a blue keyhole and all

the associates use the C+tate #ank o!C name !ollowed by the regionalhead&uartersJ name. 9riginally, the then seven banks that became the associate

banks belonged to princely states until the government nationali"ed them in 3>:>.

In tune with the !irst ive Qear Plan, emphasi"ing the development o! rural India,

the government integrated these banks into +tate #ank o! India to e pand its rural

outreach. There has been a proposal to merge all the associate banks into +#I to

create a Cmega bankC and streamline operations. The !irst step along these lines

occurred in +eptember %??= when +tate #ank o! +aurashtra merged with +tate#ank o! India, which reduced the number o! state banks !rom seven to si .

+tate #ank o! Indore +tate #ank o! #ikaner Aaipur +tate #ank o! Hyderabad +tate #ank o! Mysore +tate #ank o! Patiala +tate #ank o! Travancore

%ro th:-

+tate #ank o! India has o!ten acted as guarantor to the Indian @overnment , most

notably during /handra +hekhar Js tenure as Prime Minister o! India . )ith more

than 33,333 branches and a !urther ;:??S associate bank branches, the +#I has

e tensive coverage. +tate #ank o! India has electronically networked all o! its

branches under /ore #anking +ystem /#+-. The bank has one o! the largest $TM

networks in the region. More than =:?? $TMs across India. The +tate #ank o!

India has had steady growth over its history, though it was marred by the Harshad

Mehta scam in 3>>%. In recent years, the bank has sought to e pand its overseas

operations by buying !oreign banks. It is the only Indian bank to !eature in the top
http://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Chandra_Shekharhttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Automatic_Teller_Machinehttp://en.wikipedia.org/wiki/Harshad_Mehtahttp://en.wikipedia.org/wiki/Harshad_Mehtahttp://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Chandra_Shekharhttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Automatic_Teller_Machinehttp://en.wikipedia.org/wiki/Harshad_Mehtahttp://en.wikipedia.org/wiki/Harshad_Mehta


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3?? world banks in the ortune @lobal :?? rating and various other rankings.

Group companies:-

+#I /apital Markets 4td +#I Mutual und $ Trust- +#I actors and /ommercial +ervices 4td +#I ( HI 4td +#I /ards and Payment +ervices Pvt 4td +#I 4i!e Insurance /o. 4td ' #ancassurance 4i!e Insurance- +#I unds Management Pvt 4td +#I /anada

Est"$+%s(-ent !

The establishment o! the #ank o! #engal marked the advent o! limited liability,

joint'stock banking in India. +o was the associated innovation in banking, vi". the

decision to allow the #ank o! #engal to issue notes, which would be accepted !or

payment o! public revenues within a restricted geographical area. This right o! note

issue was very valuable not only !or the #ank o! #engal but also its two siblings,

the #anks o! #ombay and Madras. It meant an accretion to the capital o! the

banks, a capital on which the proprietors did not have to pay any interest.

The concept o! deposit banking was also an innovation because the

practice o! accepting money !or sa!ekeeping and in some cases, even investment

on behal! o! the clients- by the indigenous bankers had not spread as a general

habit in most parts o! India. #ut, !or a long time, and especially upto the time thatthe three presidency banks had a right o! note issue, bank notes and government

balances made up the bulk o! the investible resources o! the banks.

The three banks were governed by royal charters, which were revised !rom time to

time. 0ach charter provided !or a share capital, !our'!i!th o! which were privately

subscribed and the rest owned by the provincial government. The members o! the

board o! directors, which managed the a!!airs o! each bank, were mostly

proprietary directors representing the large 0uropean managing agency houses in
http://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/w/index.php?title=SBI_Capital_Markets_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Mutual_Fund&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Factors_and_Commercial_Services_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_DFHI_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Cards_and_Payment_Services_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Life_Insurance_Co._Ltd&action=edit&redlink=1http://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/w/index.php?title=SBI_Funds_Management_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Canada&action=edit&redlink=1http://en.wikipedia.org/wiki/Fortune_Global_500http://en.wikipedia.org/w/index.php?title=SBI_Capital_Markets_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Mutual_Fund&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Factors_and_Commercial_Services_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_DFHI_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Cards_and_Payment_Services_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Life_Insurance_Co._Ltd&action=edit&redlink=1http://en.wikipedia.org/wiki/Bancassurancehttp://en.wikipedia.org/w/index.php?title=SBI_Funds_Management_Pvt_Ltd&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=SBI_Canada&action=edit&redlink=1


31/101

India. The rest were government nominees, invariably civil servants, one o! whom

was elected as the president o! the board.

B0s%ness 2'

The business o! the banks was initially con!ined to discounting o! bills o! e change

or other negotiable private securities, keeping cash accounts and receiving

deposits and issuing and circulating cash notes. 4oans were restricted to 6s.one

lakh and the period o! accommodation con!ined to three months only. The security

!or such loans was public securities, commonly called /ompanyJs Paper, bullion,

treasure, plate, jewels, or goods Jnot o! a perishable natureJ and no interest could

be charged beyond a rate o! twelve per cent. 4oans against goods like opium,

indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were

also granted but such !inance by way o! cash credits gained momentum only !rom

the third decade o! the nineteenth century. $ll commodities, including tea, sugar

and jute, which began to be !inanced later, were either pledged or hypothecated to

the bank.

M"7or ,("n&e %n t(e ,on*%t%ons !

$ major change in the conditions o! operation o! the #anks o! #engal, #ombay

and Madras occurred a!ter 3=;?. )ith the passing o! the Paper /urrency $ct o!

3=;3, the right o! note issue o! the presidency banks was abolished and the

@overnment o! India assumed !rom 3 March 3=;% the sole power o! issuing paper

currency within #ritish India. The task o! management and circulation o! the newcurrency notes was con!erred on the presidency banks and the @overnment

undertook to trans!er the Treasury balances to the banks at places where the

banks would open branches. *one o! the three banks had till then any branches

e cept the sole attempt and that too a short'lived one by the #ank o! #engal at

Mir"apore in 3=5>- although the charters had given them such authority. #ut as

soon as the three presidency bands were assured o! the !ree use o! government


32/101

Pres%*en,1 B"n#s A,t !

The presidency #anks $ct, which came into operation on 3 May 3=


33/101

country. *ew irrigation networks in Madras, Punjab and +ind accelerated the

process o! conversion o! subsistence crops into cash crops, a portion o! which

!ound its way into the !oreign markets. Tea and co!!ee plantations trans!ormed

large areas o! the eastern Terais, the hills o! $ssam and the *ilgiris into regions o!

estate agriculture par e cellence. $ll these resulted in the e pansion o! IndiaJs

international trade more than si '!old.

The three presidency banks were both bene!iciaries and promoters o! this

commerciali"ation process as they became involved in the !inancing o! practically

every trading, manu!acturing and mining activity in the sub'continent.

)hile the #anks o! #engal and #ombay were engaged in the !inancing o! large

modern manu!acturing industries, the #ank o! Madras went into the !inancing o!

large modern manu!acturing

industries, the #ank o! Madras went into the !inancing o! small'scale industries in a

way which had no parallel elsewhere. #ut the three banks were rigorously

e cluded !rom any business involving !oreign e change. *ot only was such

business considered risky !or these banks, which held government deposits, it was

also !eared that these banks enjoying government patronage would o!!er un!air

competition to the e change banks which had by then arrived in India. This

e clusion continued till the creation o! the 6eserve #ank o! India in 3>5:.


34/101

Pres%*en,1 B"n#s o' Ben&"+ 2'

The presidency #anks o! #engal, #ombay and Madras with their


35/101

The establishment o! the 6eserve #ank simultaneously saw important

amendments being made to the constitution o! the Imperial #ank converting it into

a purely commercial bank.

Imperial #ank2'

The Imperial #ank during the three and a hal! decades o! its e istence recorded

an impressive growth in terms o! o!!ices, reserves, deposits, investments and

advances, the increases in some cases amounting to more than si '!old.

The !inancial status and security inherited !rom its !orerunners no doubt provided a

!irm and durable plat!orm. #ut the lo!ty traditions o! banking which the Imperial

#ank consistently maintained and the high standard o! integrity it observed in its

operations inspired con!idence in its depositors that no other bank in India could

perhaps then e&ual. $ll these enabled the Imperial #ank to ac&uire a pre'eminent

position in the Indian banking industry and also secure a vital place in the countryJs

economic li!e.


36/101

St"-/ o' I-/er%"+ B"n# o' In*%"

S0$s%*%"r%es2 ' The +tate #ank @roup includes a network o! eight banking subsidiaries and

several non'banking subsidiaries. Through the establishments, it o!!ers various

services including merchant banking services, !und management, !actoring

services, primary dealership in government securities, credit cards.

T(e e%&(t $"n#%n& s0$s%*%"r%es "re

33. +tate #ank o! #ikaner and Aaipur +##A-

3%. +tate #ank o! Hyderabad +#H-

35. +tate #ank o! India +#I-

38. +tate #ank o! Indore +#I6-3:. +tate #ank o! Mysore +#M-


37/101

3;. +tate #ank o! Patiala +#P-

3


38/101

/orporate #anking Internet #anking Mobile #anking International #anking +a!e (eposit 4ocker 6#I0 T 0'Pay 0'6ail +#I Oishwa Qatra oreign Travel /ard #roking +ervices @i!t /he&ues

NET8ORK OF SBI BANK !

+#I #ank India has :% oreign 9!!ices in 58 countries. +#I India serves the

international needs o! its !oreign customers, in addition to conducting retail

operations. The !ocus o! the o!!ices o! +#I is India'related business. ew o! the

countries where +#I #ank has branches are as under2

$ustralia #ahamas #ahrain

#angladesh #elgium #hutan /anada rance @ermany Hong Bong Aapan Maldives


39/101

Mauritious Muscat *epal *igeria 9man 6ussia +ingapore +ri 4anka +outh $!rica 7B 7+$

Str0,t0re o' Or&"n%5"t%on !

Centr"+ Bo"r* o' St"te B"n# o' In*%"

9 $s on 35 th Aanuary %??>-

BOARD OF DIRECTORS

Sr. No. N"-e o' D%re,tor Se,. o' SBI A,t6

:; a-

%. +hri +.B. #hattacharyya

M( // 69

3> b-

5. +hri 6. +ridharan

M( @0 $ +- 3> b-

8. (r. $shok Ahunjhunwala 3> c- :. +hri (ileep /. /hoksi 3> c- ;. +hri +. Oenkatachalam 3> c- c- =. (r. (eva *and #alodhi 3> d- >. Pro!. Mohd. +alahuddin $nsari 3> d-


40/101

3?. (r. Mrs.- Oasantha #harucha 3> d- 33. (r. 6ajiv Bumar 3> d- 3%. +hri $run 6amanathan 3> e-

35. +mt. +hyamala @opinath

3> !-

PERFORMANCE OF SBI BANK

INVESTOR RELATIONS !

St"te B"n# o' In*%" , the countrys largest commercial #ank in terms o! pro!its,

assets, deposits, branches and employees, welcomes you to its DInvestors

6elations +ection. +#I, with its heritage dating back to the year 3=?;, strives to

continuously provide latest and upto date in!ormation on its !inancial per!ormance.

It is our endeavor to walk on the path o! transparency and allow complete access

to all the stakeholders enabling total awareness about the #ank. The #ank

communicates with the stakeholders through a variety o! channels, such as

through e'mail, website, con!erence call, one'on'one meeting, analysts meet and

attendance at Investor /on!erence throughout the world.

Please !ind below #anks !inancial results, analysis o! per!ormance and other

highlights which will be o! interest to Investors, und Managers and $nalysts. +#I

has always been !undamentally strong in its core business which is mirrored


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SBI FINANCIAL HIGHLIGHTS !

PAST < YEARSTABLE I

STATE BANK OF INDIA !FINANCIAL HIGHLIGHTS =>>=!>?

Rs. %n B%++%on FY=>>= FY=>>@ FY=>> FY=>>< FY =>>FY=>>?

De/os%ts =?>. @ >>. @


42/101

E /enses

O/er"t%n& Pro'%t >. ??.? ;>.>>

Tot"+ Pro2%s%ons @ .: .?> < .?= . .;@ < .


43/101

St"'' E /enses :.> :.=> :. ? :.< :. = :. =

O2er(e"* E /enses >. = >. ? >. >.?= >. : >.;>

Tot"+ O/er"t%n& E /enses :. :. ? =.:: =.@> =. @ =.?=

O/er"t%n& Pro'%t :.= :. =.:; =. . < .:

C"/%t"+ A*e30",1 R"t%o:@.@< :@. :@. ?.:: .>=


44/101


45/101


46/101

Borro)%n&s :.;: :.; @.>? .@; . ? ;.:@

Ot(er L%"$%+%t%es Pro2%s%ons

:>. ::.=: :=.?> ::.@@ :=. :@. :

Tot"+ ASSETS ?:.@< ?;.: ;@.= :>.?@ :@>.@@

C"s( $"+"n,es )%t(Reser2e B"n# o' In*%" . =. .@< @. . < . ;

B"+"n,es )%t( $"n#s "n*-one1 "t ,"++ s(ortnot%,e

. = . @ .?@ :@>.@@

Cont%n&ent L%"$%+%t%es =>.;< ==.@ =


47/101

M"r#et Pr%,e 9Rs9"s on +"st *"1 o' t(e 1e"r 30"rter

=?> >


48/101


49/101


50/101


51/101


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Person"+ Lo"n "&"%nst T(%r* P"rt1 Se,0r%t1 o' NSC IVP RBI Re+%e' Bon*s

et,. !

Ten0re R"te o' Interest

7p to 5 years 3.??N above +#$6 i.e. 35.%:N

p.a.

$bove 5 years upto ; years

?.%:N above +#$6 i.e. 3%.:?N

p.a.


54/101

9FA PERSONAL LOAN

. )hat are my loan limitsU

A. Qour personal loan limit would be determined by your income and repayment

capacity. *ormally you can avail a loan upto 6s.%.:? lacs. However, i! in metros o!

*ew(elhi, Mumbai, #angalore, /hennai, Hyderabad and Bolkata, salaried

individuals or sel!'employed pro!essionals can avail Personal 4oan upto 6s.:.??

lacs. I! the salary o! a salaried individual is credited to his1her account with our

#ank or a sel!'employed pro!essional has been maintaining a satis!actorily

conducted account with us, a Personal 4oan o! up to 6s.3? lacs can be

sanctioned.

. /an my spouses income be included !or calculating the loan amountU

A. Qes, your spouseJs income can be included provided he1she guarantees the

loan or the loan is taken jointly.

. )hat are the important documents that I need to provideU

A. Qou will need to !urnish only the !ollowing documents i! you are an e isting

customer o! the #ank2

' Passport si"e photograph

' Proo! o! o!!icial address !or sel! employed individuals and pro!essionals. This can

include shop and establishment certi!icate14ease deed1Telephone #ill

' 4atest +alary clip and orm 3;, in the case o! salaried persons

. (o I have to pledge some !orm o! securityU

A. *o security is re&uired.

. )hat is the repayment schedule likeU

A. The minimum amount that you are e pected to pay every month is the 0MI. Qou


55/101

are allowed to pay more than the 0MI i! you wish to, and we do not charge any

prepayment penalty.

. )hat is 0MIU

A. 0MI stands !or 0&uated Monthly Installments. This installment comprises both

principal and interest components. 7se the 0MI calculator to !ind out your monthly

payments based on the loan amount, the rate o! interest and the repayment

period. /hoose the combination that best meets your !inancial resources and

re&uirements.

. /an I prepay the loanU $re there any penaltiesU

A. Qes, you can prepay the loan partly or !ully, at any stage, without anyprepayment penalty.

. )hat is the processing !eeU $re there any other chargesU

A. Processing charges are 3 per cent o! the loan amount. This is amongst the

lowest !ees in the industry. Processing !ees have to be paid up!ront. There are no

hidden costs or other administrative charges.

. (o I have the option o! choosing a !i ed or !loating rate !or the loanU A. Qou have the option to avail the loan with either a !i ed interest rate or a !loating

one. In the case o! a !i ed rate loan, the interest rate on the loan will remain !i ed

through the entire tenure o! the loan, whereas in the case o! a !loating rate loan,

the interest rate could decline or rise in line with the changes in the #ankJs Medium

Term 4ending 6ate +#MT46-.

. How does +#I Personal loan compare with those o!!ered by other banksU

A. There is total transparency with regard to the rate o! interest and the !ees

charged by us.

' )e o!!er personal loans at the cheapest rates o! interest, with no security or

collateral

' )e o!!er loans !or the longest tenors 8= months-, with the !le ibility provided to

reduce the tenor by prepaying the loan without any penalty.

' )e provide !inance !or any personal need or re&uirement, the total amount being

determined on the basis o! repaying capacity.


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' )ith an +#I personal loan you can choose between !i ed rates o! interest and

!loating interest rates.

INTRODUCTION OF HDFC BANK

B",#&ro0n*

H( / was incorporated in 3>


57/101

e- To grow through diversi!ication by leveraging o!! the 0 isting client.

HISTORY OF HDFC BANK

The Housing (evelopment inance /orporation 4imited H( /- was amongst the

!irst to receive an Jin principleJ approval !rom the 6eserve #ank o! India 6#I- to set

up a bank in the private sector, as part o! the 6#IJs liberali"ation o! the Indian

#anking Industry in 3>>8. The bank was incorporated in $ugust 3>>8 in the name

o! JH( / #ank 4imitedJ, with its registered o!!ice in Mumbai, India. H( / #ank

commenced operations $s a +cheduled /ommercial #ank on 3;th Aanuary 3>>:.

In the year 3>>= H( / #ank had tied up with the $hmadabad +tock 0 change

$+0- to act as its clearing bank

B0s%ness Fo,0s !

H( / #ankJs mission is to be a )orld'/lass Indian #ank. The objective is to build

sound customer !ranchises across distinct businesses so as to be the pre!erred

provider o! banking services !or target retail and wholesale customer segments,

and to achieve healthy growth in pro!itability, consistent with the bankJs riskappetite. The bank is committed to maintain the highest level o! ethical standards,

pro!essional integrity, corporate governance and regulatory compliance.


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S0$s%*%"r1 "n* Asso,%"te Co-/"n%es

T(e s0$s%*%"r%es o' HDFC ,ons%sts o'

3. H( / #ank

%. H( / Mutual und

5. H( / +tandard 4i!e Insurance /ompany

8. H( / 6ealty

:. H( / /hubb @eneral Insurance /ompany 4imited.

;. Intel net @lobal +ervices 4imited


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HDFC BANK

T(e Or&"n%5"t%on !

The Housing (evelopment inance /orporation 4imited H( /- was amongst the

!irst to receive an Jin principleJ approval !rom the 6eserve #ank o! India 6#I- to set

up a bank in the private sector, as part o! the 6#IJs liberalisation o! the Indian

#anking Industry in 3>>8. The bank was incorporated in $ugust 3>>8 in the name

o! JH( / #ank 4imitedJ, with its registered o!!ice in Mumbai, India. H( / #ank

commenced operations $s a +cheduled /ommercial #ank on 3;th Aanuary 3>>:.

In the year 3>>= H( / #ank had tied up with the $hmadabad +tock 0 change

$+0- to act as its clearing bank.

C"/%t"+ Str0,t0re !

The authori"ed capital o! H( / #ank is 6s.8:? crore 6s.8.: billion-. The paid'up

capital is 6s.533.> crore 6s.5.3 billion-. The H( / @roup holds %%.3N o! the

bankJs e&uity and about 3>.8N o! the e&uity is held by the $(+ (epository in

respect o! the bankJs $merican (epository +hares $(+- Issue-. 6oughly 53.5N o!

the e&uity is held by oreign Institutional Investors IIs- and the bank has about

3>?,??? shareholders. The shares are listed on the The +tock 0 change, Mumbai

and the *ational +tock 0 change.


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T%-es B"n# A-"+&"-"t%on !

In a milestone transaction in the Indian banking industry, Times #ank 4imited

another new private sector bank promoted by #ennett, /oleman /o.1Times

@roup- was merged with H( / #ank 4td., e!!ective ebruary %;, %???. $s per the

scheme o! amalgamation approved by the shareholders o! both banks and the

6eserve #ank o! India, shareholders o! Times #ank received 3 share o! H( /

#ank !or every :.


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ORGANI4ATIONAL STRUCTURE OF HDFC BANK !

Bo"r* o' D%re,tors !

3. Mr.Aagdish Bapoor

%. $ditya Puri

5. 6anu Bamad

8. Oineet Aain

:. $rvind Pande

;. @autam (ivan

>8 was heading /itibankJs

operations in Malaysia.

The #ankJs #oard o! (irectors is composed o! eminent individuals with a wealth o!

e perience in public policy, administration, industry and commercial banking.

+enior e ecutives representing H( / are also on the #oard.


62/101

The management consists o! the /hairman Mr Aagdish kapoor and > other

(irectors that assist him in achieving objectives o! the bank.

M6. Aagdish Bapoor

Mr. Aagdish Bapoor holds a Masters degree in /ommerce and is a ellow

member o! Indian Institute o! #anking and inance. Prior to joining the #ank, Mr.

Bapoor was the (eputy @overnor o! the 6eserve #ank o! India. He retired as(eputy @overnor o! 6eserve #ank o! India a!ter serving !or 5> years. )hile with

6eserve #ank o! India, Mr. Bapoor was the /hairman o! the (eposit Insurance

and /redit @uarantee /orporation o! India and #haratiya 6eserve #ank *ote

Mudran 4imited. He also served on the boards o! 0 port Import #ank o! India,

*ational Housing #ank, *ational #ank !or $griculture and 6ural (evelopment

*$#$6(- and +tate #ank o! I*(I$.


63/101


64/101

Mr. Aain is Managing (irector o! #ennett, /oleman /o. 4imited and (irector in

Times In!otainment Media 4imited, 0ntertainment *etwork India- 4imited, 9ptimal

Media +olutions 4imited, The Press Trust o! India 4imited, Times Internet 4imited,

Times @lobal #roadcasting /ompany 4imited, #harat *idhi 4imited, Times Aournal

India Private 4imited, )orldwide Media Private 4imited,.

Mrs. 6enu Barnad

Mrs. Barnad is a Aoint Managing (irector o! Housing (evelopment inance

/orporation 4imited and /hairperson o! H( / Oenture /apital 4imited, H( /

Property Oentures 4imited and Home 4oan +ervices India Private 4imited. +he is a

(irector o! H( / $sset Management /ompany 4imited, @67H inance 4imited,H( / 6ealty 4imited, /redit In!ormation #ureau India- 4imited, H( / @eneral

Insurance /ompany 4imited, I/I India 4imited, Indraprastha Medical /orporation

4imited, H( / +tandard 4i!e Insurance /ompany 4imited, +parsh #P9 +ervices

4imited, Mother (airy ruits Oegetables Private 4imited, eedback Oentures

Private 4imited, Motor Industries /o. 4imited, 0gyptian Housing inance /ompany

and $scendas Pte. 4imited, +ingapore.


65/101

Mr. $rvind Pande

He was a Aoint +ecretary to the Prime Minister o! India !or 0conomics, +cience

and Technology issues. Mr. Pande has served as a (irector, (epartment o!

0conomic $!!airs, Ministry o! inance, @overnment o! India and has dealt with

)orld #ank aided projects. Mr. Pande has also served on the #oard o! +teel

$uthority o! India 4imited as its /hairman and /hie! 0 ecutive 9!!icer /09-.

Mr. $shim +amanta

He has vast e perience in the !ield o! bulk drugs and pharmaceutical !ormulations.

He is a (irector o! +amanta 9rganics Private 4imited, *autilus Trading 4easing

Private 4imited, $shish 6ang 7dyog Private 4imited, +amanta Movies Private

4imited and +hakti /ine +tudios Private 4imited. Mr. +amanta has also been

engaged in setting up and running o! !ilm editing and dubbing studio.

Mr. @autam (ivan

Mr. (ivan is on the #oard o! H( / +tandard 4i!e Insurance /ompany 4imited,

#altic /onsultancy +ervices Private 4imited, #ell /eramics 4imited, #rady

Morris 0ngineering /ompany 4imited, /handanbhoy and Aassoobhoy /onsultants


66/101

Private 4imited, +erendib Investments Private 4imited and $scent Hotels Private

4imited.

(r. Pandit Palande

(r. Palande has e tensive e perience o! working in the !ields o! business

administration, management and agriculture. 7nder the guidance o! (r. Palande,

Q/M97 has become one o! the green universities in India. $s a project (irector o!

Indian +pace 6esearch 9rganisation I+69- @$P'5 o! Q/M97, (r. Palande has

been serving the agriculture community on a large scale through satellite.

Pro*0,ts "n* Ser2%,es HDFC B"n#

Pro*0,t r"n&e 2

The !ollowing is the product range o!!ered at H( /2 )hile various deposit products

o!!ered by the bank are assigned di!!erent names, the deposit products can be

categori"ed broadly into the !ollowing types. (e!inition o! major deposit schemes

are as under2 '

:. De-"n* *e/os%ts

C(emand (epositsC means a deposit received by the bank which is withdrawn

able on demandG

a- +avings $ccount2


67/101

C+avings (epositsC means a !orm o! (emand (eposit which is subject to

restrictions as to the number o! withdrawals as also the amounts o! withdrawals

permitted by the bank during any speci!ied periodG H( / provides with saving

bank account with the usual !acilities, and one also gets a !ree $TM card,

intrbranch banking, bill payment !acilities, phone banking and mobile banking.

=. Ter- De/os%ts

CTerm (epositC means a deposit received by the bank !or a !i ed period withdraw

able only a!ter the e piry o! the !i ed period and includes deposits such as

6ecurring 1 (ouble #ene!it (eposits .

@. Not%,e De/os%t

JJ*otice (epositJJ means Term (eposit !or a speci!ic period but which can be

withdrawn on giving at least one complete banking dayJs notice.

. C0rrent A,,o0nt

C/urrent $ccountC means a !orm o! (emand (eposit where!rom withdrawals are

allowed any number o! times depending upon the balance in the account or up to a

particular agreed amount and will also include other deposit accounts which are

neither +avings (eposit nor Term (epositG The account holder gets a personali"ed

che&ue book, monthly account statements, and Inter'branch banking.


68/101

These are more commonly known as +alary $ccounts. These are account in

H( / bank with "ero balance. These are given to salaried people. These

accounts are opened by the employer !or the employees to deposit the salary o!

the employee directly to the account.

. HDFC B"n# Pre'erre* !

$ pre!erential +avings $ccount where in, one is assigned with a dedicated

6elationship Manager, whos youre the one point contact. 9ne also get privileges

like !ee waivers, enhanced $TM withdrawal limit, priority locker allotment, !ree

(emat $ccount and lower interest rates on loans.

?. S)ee/!In A,,o0nt !

$ i ed (eposit linked to ones +avings $ccount. +o, even i! ones +avings

$ccount runs a bit short, one can issue a che&ue or use $TM /ard-.

. S0/er S"2er A,,o0nt !

It gives one an overdra!t !acility up to


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70/101

=>>;

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As%"n B"n#er Best Ret"%+ B"n# %n In*%" A)"r* =>>;

=>>
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71/101

inance $sia/ountry $wards!or $chievement%??=

Best B"n# "n* Best C"s( M"n"&e-ent B"n#

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$siamoney Best +o,"+ C"s( M"n"&e-ent B"n# A)"r* 2ote* $1Cor/or"tes

Microso!t Indian0 press @roup

Se,0r%t1 Str"te&%st A)"r* =>>

)orld Trade/enter $ward o!honour

For o0tst"n*%n& ,ontr%$0t%on to %ntern"t%on"+ tr"*eser2%,es.

#usiness Today'Monitor @roupsurvey

One o' In*%" s Most Inno2"t%2e Co-/"n%es

inancial0 press'0rnst Qoung $ward

Best B"n# A)"r* %n t(e Pr%2"te Se,tor ,"te&or1

@lobal H60 cellence

$wards ' $siaPaci!ic H6M/ongress2

E-/+o1er Br"n* o' t(e Ye"r =>>? !=>> A)"r* ! F%rst R0nner 0/6 -"n1 -ore

=>>?
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(un #radstreet K $merican0 press/orporate #est#ank $ward %??

$ Fr%en* =?N o! customers agree that +#I bank is very good good.

because o! good image, public sector bank, low interest rate. /ompression to H( /

bank more customers agree that +#I bank is very good.

.; O2er "++ /re'eren,e on t(e $"s%s o' %nterest r"te6 %-"&e "n* s,(e-e.

9


91/101

" HDFC @ in %??=

orbes @lobal %???. )ith an asset base o! R3%; billion and its reach, it is a

regional banking behemoth.)ide (istribution *etwork2

0 cellent penetration in the country with more than 3???? core branches and

more than :3?? branches o! associate banks subsidiaries-.

D%2ers%'%e* Port'o+%o

+#I #ank has all the products under its belt, which help it to e tend the

relationship with e isting customers #ank has umbrella o! products to o!!er

their customers, i! once customer has relationship with the bank. +ome

Products, which +#I #ank is o!!ering are2 6etail #anking #usiness #anking

Merchant 0stablishment +ervices 0(/ Machine- Personal loans /ar loans

Insurance Housing 4oans

Go2ern-ent O)ne* 2'

@overnment owns ;?N stake in +#I. This gives +#I an edge over private

banks in terms o! customer security.

4ow Transition /osts'+#I o!!ers very low transition costs which attracts small

customers.

8e"#nesses !

93


94/101

3. The e isting hierarchical management structure o! the bank, although

strength in some respects, is a barrier to change.

%. Though +#I cards are the %nd largest player in the credit card industry, it

has the highest non per!orming assets *P$s- in the industry, which stand outto be at 3;.%= N (ec %??


95/101

3. $dvent o! M*/ banks2 4arge numbers o! M*/ banks are mushrooming in

the Indian market due to the !riendly policies adopted by the government. This

can increase the level o! competition and prove a potential threat !or the market

share o! +#I bank.

% /onsumer e pectations have increased many !olds in last !ew years and

the bank has not been responsive enough to meet them on time.

5 Private banks have started venturing into the rural and semi'urban sector,

which used to be the bastion o! the +tate #ank and other P+7 banks

8. 0mployee +trike2 There was an employee strike in the year %??; which

disrupted +#Is activities. This can be repeated in the !uture.

S8OT ANALYSIS OF SBI BANK

95


96/101

STRENGTH

#6$*( *$M0

M$6B0T 40$(06

@9O06*M0*T 9)*0(.

(IO06+I I0( P96T 94I9

8EAKNESSES

40++ M9(06*I+$TI9*

HI@H06 *P$

/7+T9M06 H$O0 *9T 744

I* 96M$TI9* $#97T @0TTI*@

$/I4ITI0+

OPPURTUNITIES

HI@H $PP69/H 9 $TM

%??? #6$*/H0+ /9MI*@ 9*

O$6I97+ 49/$TI9*

M06@0( )ITH $++9/IT0(

#$*B

THREAT

0MP49Q00 +T6IB0

9TH06 *$TI9*$4IW0( #$*B

$*( P6IO$T0 #$*B+

$(O0*T 9 M*/ #$*B

S8OT ANALYSIS OF HDFC BANK

96


97/101


98/101

pre!erred because its a government bank. Procedure o! loan !inancing is easy

in H( / #ank. amily members increasing standard o! living plays an

important role in in!luencing the decision o! taking home loan.

3. +#I #ank is 4eading #ank in the country, it provides a variety o! products and

services to di!!erent segments o! customers.

%. The #ank aims to serve customers !rom teenagers to senior citi"ens, hence

di!!erent products designed to suit speci!ic re&uirements o! the above.

5. $ims to serve all classes o! the society !rom the salaried middle class to the high

income business class. /ustomers are categori"ed and segmented according to their

re&uirements and needs.

or 0 ample , the +aving 6egular and Plus $ccount aims to serve middle class

customers so minimum balance re&uired to be maintained is 6+.:,???1' or 6+. 3????.

)hile the +aving Ma $ccount is targeted at high income customers, the minimum

balance re&uirement is 6+.%:,???.

8. +#I #ank provides personal loan at low interest rate which good !or customers.

:. The #ank prides itsel! with the ability to provide di!!erentiate products in the crowed

market o! saving accounts. #ank o!!ers !ree insurance, special co'branded debit cards

which makes its product uni&ue.

APPENDIX

Person"+ Det"%+s 2

*ame2 ' YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

$ddress2 '

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98


99/101

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YYYY

$ge2 ' YYYYYYYYYYYYYYYYYY contact no2 ' YYYYYYYYYYYYYYYYYY

9: Pro'%+e o' res/on*ent

a- #usinessman b- +el! employed

c- )orking pro!essional d- @overnment +ervice 0mployee

9= 8(%,( $"n# )o0+* 1o0 /re'er 'or /erson"+ +o"n

a- H( / #ank

b- +#I #ank

c- 9thers

9@ 8("t -"#e 1o0 $e+%e2e to t"#e t(e /erson"+ +o"n 'ro- "n1 /"rt%,0+"r $"n#

a- $dvertisement b- !riend

c- amily member d- others

9 8("t )%++ 1o0 ,ons%*er )(%+e t"#%n& +o"n

a- Interest rate b- scheme

c- (uration d- others

9< For )("t t%-e %nter2"+ 1o0 ("2e t"#en +o"n

$- 3'% years b- %'5 years

c- 5'8 years d- more than 8 years

99


100/101

9 .Do 1o0 '0++1 ,ons%*er t(e /o+%,%es o' t(e $"n# re&"r*%n& /erson"+ +o"n )(en

t"#%n& +o"n.

a- Qes b- no

9? .R"te t(e (*', $"n# "-on& 'o++o)%n& on t(e $"s%s o' $"n# s,(e-e "n*

ser2%,es

a- @ood b- very good c- average d- below average

.R"te t(e s$% $"n# "-on& 'o++o)%n& on t(e $"s%s o' $"n# s,(e-e "n*

ser2%,es

a- @ood b- very good c- average d- belowaverage

9; .Ho) )%++ 1o0 see t(e 'or-"+%t%es o' t(e $"n# )(%+e t"#%n& t(e /erson"+ +o"n

Co--ent

:> On t(e $"s%s o' %nterest r"te6 ser2%,es6 %-"&e6 s,(e-e. 8(%,( $"n# 1o0

/re'er HDFC SBI "n* )(1

BIBLIOGRAPHY

MAGA4INES

1


101/101

#usiness world

#usiness today

NE8SPAPER 0conomic times

Times o! India

The Hindu

8EBSITES

www.hd!cbank.com

www.sbibank.com

www.google.com

KNO8LEDGE THROUGH T.V. !

)atched $ds o! #oth the #anks, they helped us in Bnowing about the banks raised

our interest in the topic. This $ds were the !irst source o! in!ormation about the banks.

They helped in choosing the topic.

TELEVISION

*(TO P69 IT
http://www.sbibank.com/http://www.sbibank.com/

Documents

47675185 Comparative Analysis of SBI HDFC Bank