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INDUSTRY PROFILE
In 1969 the Indian government nationalized all the major banks that it did not already own and these have remained under government ownership.
They are run under a structure know as 'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as commercial banks.
The Indian banking sector is made up of four types of banks, as well as the PSUs and the state banks, they have been joined since 1990s by new private commercial banks and a number of foreign banks.
Banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge.
The government has developed initiatives to address this through the State bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with things like microfinance.
CURRENT PERIOD
In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region.
The Reserve Bank of India is an autonomous body, with minimal pressure from the government.
By 2013 , banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks.
With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong.
Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank.
In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and personal loans.
There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.
COMPANY PROFILE State Bank of India (SBI) is a multinational
banking and financial services company based in India.
It is a government-owned corporation with its headquarters in Mumbai, Maharashtra.
As of December 2012, it had assets of US$501 billion and 15,003 branches, including 157 foreign offices, making it the largest banking and financial services company in India by assets.
SBI is a regional banking behemoth and has 20% market share in deposits and loans among Indian commercial banks.
Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became SBI.
SBI is a regional banking behemoth and has 20% marketshare in deposits and loans among Indian commercialbanks.
SBI provides a range of banking products through itsnetwork of branches in India and overseas, includingproducts aimed at non-resident Indians(NRIs). SBI has14 SBI has 14 regional hubs and 57 Zonal Offices that arelocated at important cities throughout India.
Domestic presence
SBI had 14,816 branches in India of which 9,851 (66%) were in Rural and Semi-urban areas. In the financial year 2012-13, its revenue was INR 200,560 Crores (US$ 36.9 billion), out of which domestic operations contributed to 95.35% of revenue. Similarly, domestic operations contributed to 88.37% of total profits for the same financial year.
International presence
The Israeli branch of the State Bank of India located in Ramat Gan.
The bank had 180 overseas offices spread over 34 countries. Ithas 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 , Bahrain, and Singapore and representative offices in Bhutan and Cape Town It also has an ADB in Boston, USA.
7 P’S OF SBI
PRODUCT Core product:
The basic services in banking form a basic product
Eg: Accepting deposits, granting loans
Formal product:
It is the set of attributes and conditions expected by the customers when they purchaser the product
Eg: Insurance facilities, locker facilities, atm’s
CONTD, Augmented product:
It is the additional feature that banks provide which exceeds the customer’s expectations
Eg: Discounts, Good waiting rooms
Potential product:
It includes Innovations and product differentiation. Banks alters its services according to the requirement of the individual customers
Eg: Mobile and internet banking, new schemes tailored for specific customers
PRICE Interest rates charged
Transaction charged
Value pricing
Going rate pricing
Mark up pricing
Charges for cheque books
Commmission charges
PLACEImportant factors affecting the determination of
the location of bank are:
The trade area
Population characteristics
Commercial structure
Industrial structure
Visibility
Access
PROMOTION Public relations
Personal selling
Word of mouth promotion
Internet
Tele marketing
PHYSICAL EVIDENCE It refers to the overall layout of the place i.e.
how the entire bank is designed. Physical evidence refers to all those factors that makes process much easier and smoother.
Eg: In banks the physical evidence would be the placement of customer service executive’s desk or the location of the place for deposting cheques.
PROCESSProcess constitutes the overall procedure
involved in using the services offered by the bank.
The process should be customer friendly
If the overall process is too complicated than the customer may not be inclined to use such services
PEOPLE SBI has provided employment to 222,933 people all over the
world. SBI has recruited thousands of young graduates and post graduates and is yet to recruit many more. Thus, SBI has a proportionate blend of both the old and the new schools of thought.
SBI provides its employees with training facilities as and when required in order to keep them abreast with the new technologies and products that get introduced in the banking sector.
SBI has turned into the third-largest employer in India among listed companies after Coal India Limited(383,347) and Tata Consultancy Services(226,751).
COMPETITORS
SERVICE BLUE PRINT
DATA ANALYSIS MINI PROJECT ON
STATE BANK OF INDIA
PROCESSING FEES
0
5000
10000
15000
20000
5000
10000
20000 20000
10000 10000 10000 10000 10000
PROCESSING CHARGE(in Rs)
INTEREST RATES
9.4
9.6
9.8
10
10.2
10.4
10.6
10.8
11
SBI Axisbank
HSBC HDFC Canarabank
Bank ofBaroda
9.95
10.75
11
10.525
10.25
10.5
INTEREST RATE(in %)
EQUATED MONTHLY AMOUNT ON A LOAN OF 20 LAKHS FOR 20 YEARS
18500
19000
19500
20000
20500
21000
SBI Axis bank HSBC HDFC Canarabank
Bank ofBaroda
19234
20305
20644
20035
19633
19968
EMI(Equated monthly instalments,in Rs)
18500
19000
19500
20000
20500
21000
SBI Axis bank HSBC HDFC Canarabank
Bank ofBaroda
19234
20305
20644
20035
19633
19968
EMI(Equated monthly instalments,in Rs)
18500
19000
19500
20000
20500
21000
SBI Axis bank HSBC HDFC Canarabank
Bank ofBaroda
19234
20305
20644
20035
19633
19968
EMI(Equated monthly instalments,in Rs)
SERVICE PROMISED RATES
14.71%
55.88%
3.92 %
7.84 %
17.65 %
55.88% - EXCELLENT17.65% - VERY GOOD14.71% - GOOD7.84% - BAD3.92% - VERY BAD
ACCURATE SERVICE RATE
75.5%
12.75 %
6.86 %4.9 %
75.5% - EXCELLENT12.75% -VERY GOOD6.86% - GOOD4.9% - BAD
INDIVIDUAL ATTENTION
45% -EXCELLENT30% -VERY GOOD20% - GOOD5% -BAD
FIRST TIME SERVICE
62.5% -VERY GOOD 15% -GOOD12.5 –BAD10% -VERY BAD
OPERATING HOURS
YES
NO
COMPARED TO OTHERS
65% - EXCELLENT25% -GOOD 10% - BAD
GAP ANALYSIS
KEY FINDINGS Customer friendly
Easily reached
The result of factor analysis showed that interest rate, pay back period ,speed of processing and equated monthly instalment are the four main criteria by which customers select their financial institutions.
SBI charges lowest interest rate,EMI and processing fee and provides maximum repayment period of 30 years.
Not on time service, time consuming process.
RECOMMENDATIONS It should tie up with private agencies to attract more customers.
It should conduct more events like GRAHAPRAVESHA.
SBI should advertise through various mediums like NEWSPAPERS, TELEVISION, INTERNET, RADIO, etc.
The result of factor analysis showed that interest rate, pay back period ,speed of processing and equated monthly instalment are the four main criteria by which customers select their financial institutions. So, SBI bank must excel on these criteria to project a good image
LIMITATIONS The sample size is restricted to 30 respondents due to time
limit. The study is conducted considering the prevailing condition which is likely to change in future.
Due to time and costs constraints the study was limited to ONE SBI BRANCH only.
Some of the respondents were not willing to responds to our questionnaire.
Few respondents were hesitant while answering the questions.