Sbi Project Shot Term Loan

STATE BANK OF INDIA, MAIN ROAD BRANCH, RANCHI
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MARWARI COLLEGE, RANCHI
INTRODUCTION
BRIEF RELEVANCE OF THE TOPIC AND THE ORGANIZATION.
The origin of the State Bank of India goes back to the first decade of the
nineteenth century with the establishment of the Bank of Calcutta, in Calcutta on
2nd June. Three years later the bank received its charter and was redesigned as
the Bank of Bengal on 2nd January 1809. The Bank of Bombay on the 15th April
1840 and the Bank of Madras on 1st July 1843 followed the Bank of Bengal.
These three banks were governed by Royal Charter, which were revised from
time to time187. These three banks received the exclusive right to issue paper
currency in 1861 with the Paper Currency Act, a right they retained until the
formation of the Reserve Bank of India. The business of the banks was initially
confined to discounting of bills, keeping cash accounts, receiving deposits and
issuing and circulating cash notes. Loans were restricted to Rs.1 lakh and the
period of accommodation confined to three months only. With the passing of the
Paper Currency Act of 1861, the right of note issue of the presidency banks was
abolished and the Government of India assumed the sole power of issuing paper
currency from 1 March 1862. None of the three banks had till then any branches
although the charters had given them such authority. By 1876, the Bank of
Bengal had eighteen branches including its head office; seasonal branches and
sub agencies, the Banks of Bombay and Madras had fifteen each . The Presidency
Banks Act, which came into operation on 1st May 1876, brought the three
presidency banks under a common statute and the banks involved themselves in
the financing of practically every trading, manufacturing and mining activity in
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the sub-continent. But the three banks were rigorously excluded from any
business involving foreign exchange, as it was feared that these banks enjoying
government patronage would offer unfair competition to the exchange banks,
which had by then arrived in India. This exclusion continued till the creation of
the Reserve Bank of India . The Presidency Banks of Bengal, Bombay and Madras
with their 70 branches were merged on 27th January 1921 to form the Imperial
Bank of India. They took on the triple role of a commercial bank, a banker’s bank
and a banker to the government. The establishment of the Reserve Bank of India
as the central bank of the country in 1935 ended the quasi-central banking role
of the Imperial Bank. The business of the banks was initially confined to
discounting of bills of exchange or other negotiable private securities, keeping
cash accounts and receiving deposits and issuing and circulating cash notes.
Loans were restricted to Rs. One lakh and the period of accommodation confined
to three months only. The earlier restrictions on its business were removed and
the bank was permitted to undertake foreign exchange business and executor
and trustee business for the first time. 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 increase in some cases
amounting to more than six-fold. 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. When India attained freedom, the Imperial
Bank had a capital base (including reserves) of Rs.11.85 crore, deposits and
advances of Rs.275.14 crore and Rs.72.94 crore respectively and a network of
172 branches and more than 200 sub offices extending all over the country.
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MEMBERS OF BOARD OF CENTRAL BANK
OBJECTIVES
The Objectives Of My Study Are As Follows
 To know about short term loan.
 To know about NPA and what are the underlying reasons for emergence of
NPA.
 To study the impact of NPA on the operation of the bank.
 To know about what are the steps taken by the bank to reduce the it.
 To know why NPA are greater challenges to the bank.
 To study the general reason for asset becoming NPA.
 What are the methods adopted to look after NPA management.
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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It
may be understood as a science of studying how research is done scientifically.
So, the research methodology not only talks about the research methods but also
consider the logic behind the method used in context of the research study. In
various methods, it is also good to analyses the decision factor having taken data
collection .A researcher may select any of the following data as per his/her
convenience.
 Primary source of data

 Secondary source of data
1.PRIMARY SOURCE OF DATA : Primary data means original data that has
been collected specially for the purpose in mind. It means someone collected the
data from the original source first hand. Data collected this ways called primary
data. Primary data has not been published yet and is more reliable, authentic and
objective. Primary data has not been changed or altered by human beings;
therefore its validity is greater than secondary data.
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Primary data is the data collected by the researcher themselves i.e..

interview,observation,action,research,case,studies,questionnaires,ethnographic
research ,longitudinal studies.
2.Secondary source of data: Secondary source consist of not only published
records and reports ,but also unpublished records. The latter category includes
various records and registers maintained by the firms and organization .
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BRIEF HISTORY SBI
The roots of the State Bank of India lie in the first decade of 19th century,
when the Bank of Calcutta, later renamed the Bank of Bengal, was
established on 2 June 1806. The Bank of Bengal was one of three
Presidency banks, the other two being the Bank of Bombay(incorporated
on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843).
All three Presidency banks were incorporated asjoint stock companies and
were the result of the royal charters. These three banks received the
exclusive right to issue paper currency till 1861 when with the Paper
Currency Act, the right was taken over by the Government of India. The
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Presidency banks amalgamated on 27 January 1921, and the re-organised

banking entity took as its name Imperial Bank of India. The Imperial Bank
of India remained a joint stock company but without Government
participation. Pursuant to the provisions of the State Bank of India Act of
1955, the Reserve Bank of India, which is India's central bank, acquired a
controlling interest in the Imperial Bank of India. On 1 July 1955, the
Imperial Bank of India became the State Bank of India. In 2008 the
government acquired the Reserve Bank of India's stake in SBI so as to
remove any conflict of interest because the RBI is the country's banking
regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary
Banks) Act, which made eight state banks associates of SBI. A process of
consolidation began on 13 September 2008, when the State Bank of
Saurashtra merged with SBI.
SBI has acquired local banks in rescues. The first was the Bank of Behar
(est. 1911), which SBI acquired in 1969, together with its 28 branches.
The next year SBI acquired National Bank of Lahore (est. 1942), which had
24 branches. Five years later, in 1975, SBI acquired Krishnaram Baldeo
Bank, which had been established in 1916 in Gwalior State, under the
patronage of Maharaja Madho Rao Scindia. The bank had been the Dukan
Pichadi, a small moneylender, owned by the Maharaja. The new banks first
manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of
Cochin in Kerala, which had 120 branches. SBI was the acquirer as its
affiliate, the State Bank of Travancore, already had an extensive network
in Kerala.
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The State Bank of India and all its associate banks are identified by the
same blue keyhole logo. The State Bank of India word mark usually has
one standard typeface, but also utilises other typefaces.
On October 7, 2013, Arundhati Bhattacharya became the first woman to be
appointed Chairperson of the bank.
LOGO OF STATE BANK OF INDIA
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ORGANISATION STRUCTURE AND MANAGEMENT
The management of the State Bank1 vests in a Central Board of Directors which
consists of:
• A Chairman and a Vice-Chairman appointed by the Central Government in

consultation with the Reserve Bank of India.
• Two Managing Directors appointed by the Central Board of Directors with the
approval of the Central Government.
• Six directors to be elected in the prescribed manner by the shareholders other

than the Reserve Bank.
• Eight directors to be nominated by the Central Government in consultation

with the Reserve Bank of India to represent territorial and economic interests in
such a manner that not less than two of them have special knowledge of the
working of the cooperative institutions and of rural economy and the others have
experience in commerce, industry, banking and finance;
• One director to be nominated by the Central Government; 11 Varshney and

Sundaram, “Banking Theory and Practice” (1987), S.Chand & Sons, New Delhi,
• One director to be nominated by the Reserve Bank;
• Two directors to be appointed to represent the officers and the staff of the
bank. The Chairman, the Vice-Chairman and the Managing Director shall hold
office for such terms not exceeding five years as the Central Government may fix
when appointing them and shall be eligible for re-appointment. The directors
elected by the shareholders and nominated by the Central Government will hold
office for fours years and are eligible for re-election or re-nomination. The other
nominated directors shall hold office as per recommendations of the authority
appointing them. Besides the Central Board, there are Local Boards of
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Management established at Calcutta, New Delhi, Kanpur, Ahmedabad, Bhopal

and Patna. Each local board consists of the members of the Central Board
residing in the area and directors not exceeding four elected shareholders whose
names appear in the branch register. To keep the management free from politics,
the Act stipulates that no member of the Central or State Legislatures shall be
appointed as directors of the State Bank of India. Structural changes have been
introduced by the bank in order to re-orient the business according to changing
conditions in the market. One such step, for the first time, was initiated in 1971.
In the year 1979, for the second time the structural changes were implemented.
The major organizational change in structure took place in 1995, by the
appointment of Mckinsey Consultants. Through changes were introduced in
strategies, structures, systems etc., in the organizational set up of SBI, as per
recommendations of the consultant committee.
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STRENGTH OF ORGANISATION
LEARNING & DEVELOPMENT
The bank has taken up several key initiatives to enthuse and motivate the
employees to perform better so as to achieve the Bank’s growth plans. As
part of the initiative it has taken up a ‘Leadership pipeline’ initiative with
the objective of grooming the officials from the level of Scale-IV up to GM
for future leadership positions. Services of reputed institutions like
ISB/Duke University/IIMs have been engaged for the purpose. Further, the
Bank has gone in for accreditation of one of the training institutions for
training of debt recovery agents to facilitate the future appointments of
recovery agents. As the accreditation process is mandatory for the
recovery agents.
PERSONNEL MANAGEMENT
To foster team spirit amongst the employees and to motivate them to

excel in customer service the bank has set up the Performance Linked
Incentive Scheme which also helped the Bank in exploiting the new
emerging business opportunities to achieve the Bank’s growth plans. The
Bank has also gone for contract employment, on cost to company basis, of
specialists like Chartered Accountants, Law Officers, Statisticians,
Economists, Customer Relation Executives, Credit Analysts etc. to take
care of Bank’s growing needs to face competition.
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The Bank also revised the Family Pension Scheme for the family pensioners
of the Bank retrospectively from the 1st May 2005. The pension fund has
been separated from the Banks’ liability after obtaining necessary approval
from the Board of Trustees. The fund will be managed by the Treasury
Dept. of SBI for better returns.
STAFF STRENGTH
The Bank has total permanent staff strength of 2, 95,980 as on 31st

March, 2014. Of this, 80,404 (37.32 per cent) are officers, 95,715 (44.42
per cent) clerical staff and the remaining 39,362 (18.26 per cent) are sub-
staff.
It has been further decided to recruit 9500 new clerical staff during the FY
2013-14 to meet the growing business needs of the Bank.
SBI Main Road Branch Has 50 Employees in the branch including

permanent as well as temporary.
RECRUITMENT
To meet the requirement of skilled manpower and to tap the emerging
business opportunities the bank has recruited 66 Specialist Management

Executives with qualification of CA/ICWA/MBA (Finance, Marketing) during
the year. Also the bank has inducted 7 Special Technical Executives with
B.E. / B.Tech qualification in the fields of Chemical, Mechanical, Electrical,
Metallurgical Engineering appointed for manning consultancy cells in
Circles. Further, 917 Probationary Officers and 118 other Specialist Officers
have been recruited during FY 2011-12. This will take care of the Bank’s
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requirements of officers in operations and specialized areas and helps in

reducing the age profile of staff but will also provide an opportunity for
greater mobility and marketing thrust across the Bank to achieve its
growth plans.
Besides these the bank has also been successfully holding online
examination for promotion from JMGS I to MMGS II, all promotion

exercises in respect of officers up to the grade of Deputy Managing
Director.
TRAINING
The bank is making continuous efforts to impart knowledge, to develop
skills and also to re-orient the attitude of its employees and to keep pace
with the changing business environment. The banks network of providing
training to its employees consists of 4 apex level colleges viz. State Bank
Staff College, Gurgaon; State Bank Staff College, Hyderabad; State Bank
Institute of Rural Development and State Bank Institute of Information and
Communication Management and over 50 training centres located across
the country. The bank also provides on-site training to its employees
working in the branches under the visiting faculty scheme.
SUPPORT SYSTEMS AND INTERNAL COMMUNICATION SYSTEM
Adequate support systems have been provided by the bank to its
employees for proper flow of information to them. The employees are also
informed about the achievements in the business. The media used for
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internal communication includes: The SBI Monthly Review, Gurukula, SBI

Economic Newsletter, and Choyanika
INDUSTRIAL RELATIONS
In view of garnering good and excellent relationships with the members of

both the Staff and Officers Federations the State Bank of India sorted out
various industrial relations issues through their consistent support and
healthy dialogue/discussions during the year.
It also enhanced the limits under various staff loan schemes and other
initiatives for providing better facilities / incentives to the employees, in
order to create better industrial relations environment in the Bank.
HUMAN RESOURCES MANAGEMENT SOLUTIONS (HRMS)
The bank has set up a centralized platform for the processing and payment
of salary of all the employees of SBI, SBP, SBM & SBH. It further
introduced the automation of centralized Provident Fund related services to
augment faster settlement of terminal benefits.
STRATEGIC TRAINING UNIT (STU)
The banks Strategic Training Unit (STU) has been fully operationalized on
5th April 2010. It has undertaken a number of initiatives during the year
2011-12 to increase the efficiency and effectiveness of the Bank’s training
system. Some of the major initiatives in this regard are as follows:1. Over
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2 lakh (96.7 per cent of Bank’s staff strength) employees were trained at 5
ATIs and 47 SBLCs.
2. State Bank Training Management System has been operationalized for

creating a comprehensive database and tracking of training of all
employees.
3. E-learning through HRMS portal has been expanded to over 213 courses
and about 83% of the staff are now registered on the portal.
4. Leadership Development Programmes were organized for Top Executives

and Senior Management.
5. Research studies by the Bank officials were recognized by various

outside publications/agencies like Bancon, ICRIER.
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CAPITAL AND FINANCIAL/ASSET STRUCTURE
State Bank of India, the country’s largest commercial Bank in terms of

profits, assets, deposits, branches and employees, welcomes you to its
‘Investors Relations’ Section. SBI, with its heritage dating back to the year
1806, strives to continuously provide latest and upto date information on
its financial performance. It is our endeavor to walk on the path of
transparency and allow complete access to all the stakeholders enabling
total awareness about the Bank. The Bank communicates with the
stakeholders through a variety of channels, such as through e-mail,
website, conference call, one-on-one meeting, analysts’ meet and
attendance at Investor Conference throughout the world
Please find below Bank’s financial results, analysis of performance and

other highlights which will be of interest to Investors, Fund Managers and
Analysts. SBI has always been fundamentally strong in its core business
which is mirrored in its results – year after year.
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NATURE OF WORKING
State Bank of India offers a wide range of services in the Personal Banking
Segment which are indexed here.
TERM DEPOSITS
SBI provide security, trust and competitive rate of interest. Flexibility in

period of term deposit from 7 days to 10 years. It is affordable low
minimum deposit amount with SBI for a nominal amount of Rs.1, 000 only.
Customers can avail a loan/overdraft against their deposit. SBI provides
loan/overdraft up to 90 per cent of their deposit amount at nominal cost.
RECURRING DEPOSITS
Recurring Deposit provides customers the element of compulsion to save at

high rates of interest applicable to Term Deposits along with liquidity to
access that savings any time. Recurring Deposit is flexibility in period of
deposit with maturity ranging from 12 months to 120 months. It is low
minimum monthly deposit amount. The customer can start a Recurring
Deposit with SBI for a monthly installment of Rs.100 only.
SBI HOME LOAN
It offers interest rates concessions on Green Homes in accordance with
SBI’s commitment to Environment protection. The product gives the

customers a onetime irrevocable option to choose one of the three
customized combinations of fixed and floating interest rates and also to
choose the order in which the fixed and floating rate will be availed. The
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minimum loan amount sanctioned is Rs.5 lakh. Its products are again
segregated into different types on the basis of their term of repayment and
their loan package: SBI-Maxgain Home Loans, Realty
Home Loans, Home Equity Loans, NRI Home Loans, Tribal Plus, Gram
Niwas, Sahyog Niwas, Green Home Loan, Surakshit Home Loan, Yuva
Home Loan, Home Loan Pal. Thus, the bank provides its customers
comfortable repayment obligations – Tenure of the loans equal to the
residual maturity of the original Home Loans.
SBI CAR LOAN
The bank provides its customers the best car loan schemes with excellent
service and lower costs. A quick view by the customers of similar schemes
available with other banks shows that SBI Car Loans for new and old
vehicles offer for the customers.
SBI EDUCATION LOAN
A term loan granted to Indian Nationals for pursuing higher education in

India or abroad where admission has been secured. All courses having
employment prospects are eligible for getting education loans and they are
briefed below.
SBI LOAN TO PENSIONERS
The customer can avail of a loan from their branch to meet their personal
expenses. They can avail a loan of up to a maximum of 12 months
pension, subject to a ceiling of Rs.1 lakh. The loan may be repaid over a 5
years and will carry a low interest rate of 13.25 per cent per annum.
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SBI LOAN AGAINST SHARES/DEBENTURES
The customers can avail of loans up to Rs.20 lakh against their
shares/debentures to enable them to meet contingencies, personal needs

or even for subscribing to rights or new issue of shares.
SBI AGRICULTURAL LOANS
The Bank launched the new products, to increase the flow of credit to
agriculture sector in the year 2003-2004. The advances of Agriculture

Business Group increased from Rs.1,360 crore in 2008-09 to Rs.34,933
crore in 2009-10 showing an increase of 2468.6 per cent. Agricultural loans
are provided for the purchase of assets connected with rural activities
under agriculture, horticulture, plantation, sericulture, animal husbandry,
fisheries etc., where the loan amount
is repayable over a period of time exceeding 3 years. Under this

agricultural loan there are other kinds of benefits provided by SBI through
schemes such as the Kisan Credit Card Scheme, Land Development
Schemes, Minor Irrigation Schemes, Farm Mechanisation Schemes, Krishi
Plus Scheme for Customised Hiring of Tractor to Rural Youth, Lead Bank
Scheme etc.
SBI INDUSTRIAL LOANS
SBI offers working capital finance to meet the entire range of short-term
fund requirements that arise within a corporate’s day-to-day operational
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cycle. The SBI working capital loans can help company in financing
inventories, managing internal cash flows, supporting supply chains,
funding production and marketing operations, providing cash support to
business expansion and carrying current assets. The SBI corporate term
loans can support company in funding ongoing business expansion,
repaying high cost debt, technology upgradation, R&D expenditure,
leveraging specific cash streams that accrue into A company, implementing
early retirement schemes and supplementing working capital. Hence, the
Bank extends financial assistance to help agriculturists, industrialists and
common man in various modes.
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AREA OF OPERATION
SBI provides a range of banking products through its network of branches in

India and overseas, including products aimed at non-resident Indians (nris). SBI
has 14 regional hubs and 57 Zonal Offices that are located at important cities
throughout India.
DOMESTIC PRESENCE
SBI has 14,816 branches in India, as on 31 March 2013, of which 9,851 (66%)
were in Rural and Semi-urban areas.[2] 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.[2]
Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by
Government in August 2014, SBI held 11,300 camps and opened over 30 lakhs
accounts by September, which included 21.16 lakh accounts in rural areas and
8.8 lakh accounts in urban areas.[14]
INTERNATIONAL PRESENCE
The Israeli branch of the State Bank of India located in Ramat Gan.
As of 28 June 2013, the bank had 190 overseas offices spread over 36 countries.
It has branches of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong
Kong,Tehran, Johannesburg, London, Los Angeles, Male in
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the Maldives, Muscat, Dubai,New York, Osaka, Sydney, and Tokyo. It

has offshore banking units in the Bahamas,Bahrain, and Singapore, and
representative offices in Bhutan and Cape Town.
The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has
seven branches, four in the Toronto area and three in the Vancouver area.
SBI operates several foreign subsidiaries or affiliates. In 1990, it established an

offshore bank: State Bank of India (Mauritius). SBI (Mauritius) has 15 branches
in major cities/towns of the country including Rodrigues.
SBI Sri Lanka now has three branches located in Colombo, Kandy and Jaffna. The
Jaffna branch was opened on 9 September 2013. SBI Sri Lanka, the oldest bank
in Sri Lanka, celebrated its 150th year in Sri Lanka on 1 July 2014.
State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong
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In 1982, the bank established a subsidiary, State Bank of India (California),

which now has ten branches – nine branches in the state of California and one in
Washington, D.C. The 10th branch was opened in Fremont, California on 28
March 2011. The other eight branches in California are located in Los Angeles,
Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield.
In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-
Nigerian Merchant Bank and received permission in 2002 to commence retail
banking. It now has five branches in Nigeria.
In Nepal, SBI owns 49% of SBI Nepal (State Bank in Nepal) share with Nepal
Government owing the rest and SBI NEPAL has branches throughout the country
in each and every city as banking has become the major part of daily life
for Nepalese people. In Moscow, SBI owns 60% ofcommercial Bank of India,
with Canara Bank owning the rest. In Indonesia, it owns 76% of PT Bank Indo
Monex.
The State Bank of India already has a branch in Shanghai and plans to open one
in Tianjin.
In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it
acquired for US$8 million in October 2005.
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STRONG POINTS OF SBI
The values of State Bank of India are:
• We will always be honest, transparent and ethical.
• We will respect our customers and fellow associates.
• We will be knowledge driven.
• We will learn and we will share our learning.
• We will never take the early way out.
• We will do everything we can to contribute to the community we work in.
• We will nurture pride in India.
WEAKNESS OF SBI
 SBI is currently working at lowest car
 Most of the branches are having stiff competition especially at retail market
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 There is delay in technology up gradation
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MEANING OF SUBJECT MATTER SELECTED
LOANS OF SBI,RANCHI :
A short term loan is a loan from a bank for a specific amount that has a
specified repayment schedule and a floating interest rate. Term loans almost
always mature between one and 10 years. Businesses use term loans for month-
to-month operations or to purchase fixed assets such as production equipment.
An unsecured loan is issued and supported only by the borrower's

creditworthiness, rather than by some sort of collateral. Generally, a borrower
must have a high credit rating to receive an unsecured loan. Commercial paper is
an example of an unsecured loan. A secured loan is backed by collateral; if it is
not repaid, the lender can seize the collateral and sell it to recover the funds it
lent.
 Repayment period: Max up to 48 months
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 Loan Amount: Minimum Rs 24,000/- in metro & Rs 10,000/- in rural or semi

urban cities.Maximum-12 times Net Monthly Income for salaried individual &
pensioners, up to 10 lakh.
 No security is required.
 Minimal documentation and quick approvals
 Loans are provided for domestic or foreign travel, medical treatment of self or a
family member, meeting any financial liability such as marriage of
son/daughter, paying educational expenses of wards, meeting margins for
purchase of assets etc.
PRINCIPAL COMPETITORS
SBI RANCHI Bank; Bank of Baroda; Canara Bank; Punjab National Bank; Bank of
India; Union Bank of India; Central Bank of India; HDFC Bank; Oriental Bank of
Commerce.
ASSOCIATE BANKS
SBI has five associate banks that with SBI constitute the State Bank Group.
All use the same logo of a blue keyhole and all the associates use the "State Bank
of" name followed by the regional headquarters' name. Originally, the then seven
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banks that became the associate banks belonged to princely states until the
government nationalized them between October, 1959 and May, 1960. In tune
with the first Five Year Plan, emphasizing the development of rural India, the
government integrated these banks into State Bank of India to expand its rural
outreach. There has been a proposal to merge all the associate banks into SBI to
create a "mega bank" and streamline operations.The first step towards unification
occurred on 13 August 2008 when State Bank of Saurashtra merged with State
Bank of India, reducing the number of state banks from seven to six. Then on 19
June 2009 the SBI board approved the merger of its subsidiary, State Bank of
Indore, with itself. SBI holds 98.3% in the bank, and the balance 1.77% is owned
by individuals, who held the shares prior
to its takeover by the government .
The acquisition of State Bank of Indore added 470 branches to SBI's
existing network of 12,448 and over 21,000 ATMs. Also, following the
acquisition, SBI's total assets will inch very close to the Rs 10-lakh crore mark.
Total assets of SBI and the State Bank of Indore stood at Rs 998,119 crore as on
March 2011. The process of merging of State Bank of Indore was completed by
April 2012
NON-BANKING SUBSIDIARIES OF SBI
1. SBI Capital Markets Ltd. (SBI CAP)
2. SBI Funds Management Pvt. Ltd (SBI FUNDS)
3. SBI Factors and Commercial Services Pvt. Ltd.
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4. SBI DFHI (Discount & Finance House of India) Ltd.
5. SBI GILTS Ltd.
6. SBI Commercial and International Bank Ltd.
7. SBI Mutual Fund (A Trust)
JOINT VENTURES OF SBI
1. SBI Cards and Payment Services Pvt. Ltd.
2. Gt.Capital Business Process Management Service Pvt. Ltd.
3. SBI Life Insurance Co. Ltd.
4. Credit Information Bureau (India) Ltd. (CIBIL)
ASSOCIATES OF SBI
1. Clearing Corporation of India Ltd.
2. Nepal SBI Bank Ltd.
3. Bank of Bhutan
4. UTI Asset Management Company Pvt. Ltd.
FOREIGN SUBSIDIARIES
1. SBI International Mauritius Ltd, Offshore Bank
2. SBI Canada
3. SBI Lagos
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4. SBI California
The total number of branches and ATMs of State Bank of India and its
associates as on March 2011 is presented in Table 3.2. The total number of

branches for rural, semi-urban, urban, and metropolitan for State Bank of India
and its associates is discussed below. The total number of branches of State Bank
group for all the four areas is 17,913. The total branches of State Bank of India
are 13,284 of which 4,972 are in rural areas, 3,865 are in the semi-urban areas,
2,382
are in urban areas, and 2,065 branches are located in the metropolitan areas.
The total ATMs of the State bank group are 24,651 of which 14,104 are onsite
ATMs and 10,547 are off-site ATMs. Further, the total number of ATMs of the
State Bank of India is 20,084, while on-site ATMs are 10,826 the off-site ATMs
are 9,258. Also, from table 3.2 it can be seen that the per cent of Off-site to total
ATMs is 42.8 for the state bank group as a whole and the per cent of Off-site to
total ATMs for State Bank of India is 46.1. The per cent of ATMs to branches for
the total state bank group is 137.6 and for only the State Bank of India is 151.2
per cent.
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METHODS OF TOOLS OF ANALYSIS OF THE SUBJECT
STATE BANK OF INDIA
• MY SBI.
• MY CUSTOMER FIRST.
• MY SBI: FIRST IN CUSTOMER SATISFACTION.
MISSION OF STATE BANK OF INDIA
• We will be prompt, polite and proactive with our customers.
• We will speak the language of young India.
• We will create products and services that help our customers achieve
their goals.
• We will go beyond the call of duty to make our customers valued.
• We will be of service even in the remotest part of our country
• We will offer excellence in service to those abroad as much as we do
to those in India.
34
• We will imbibe state of art technology to drive excellence
KEY DEVELOPMENTS
State Bank of India - Financial and Strategic Analysis Review State Bank of India
(SBI) is a large financial services group operating in the banking industry. The
bank is engaged in providing trading services, international banking and
traditional banking and treasury operations. The Reserve Bank of India holds
more than half of SBI's equity capital. SBI has a network of over 10,000
branches. In addition, the seven associate banks of SBI have more than 4900
branches. SBI along with its subsidiaries is engaged in providing a wide range of
financial services including Life Insurance, Merchant Banking, Mutual 134 Funds,
Credit Card and Factoring, Security trading and primary dealership in the Money
Market. Global Markets Direct, the leading business information provider,
presents an indepth business, strategic and financial analysis of State Bank of
India. The report provides a comprehensive insight into the company, including
business structure and operations, executive biographies and key competitors.
The hallmark of the report is the detailed strategic analysis and Global Markets
Direct's views on the company.
MERITS
35
LIEN MARKING FACILITY:

 A unique facility by which you can ‘Block Funds' in your own savings account or
‘Block Shares' in your Demat account to trade online.
 The funds/shares will be actually transferred to the broker's account at the end
of the day only if the transactions placed by you are executed. Thus, fund
released is only a net debit or credit based on your net obligation, making it
absolutely hassle free.
 Instant and automated net payout of funds and securities.
MULTIPLE PRODUCT OFFERING:
 Get access to the complete range of products from secondary market equities in
the cash and derivatives segment.
 You can save yourself of all the hassles of filling tedious application forms to
participate in IPO's by applying online.
 So get Equities, Commodities, Mutual funds and IPO's under single point of
contact. BNST (Buy Now Sell Tomorrow) option with limited stock is also
available.
 OPTION OF DIFFERENTIATING INTRADAY AND DELIVERY
TRADES.
 No margin for square off of open positions, sell shares available in the SBI demat
account.
 Live quotes of NSE–Cash/Derivative, BSE Cash, Commodity. Create multiple
market watches, default market watch – NIFTY, SENSEX, Industrial. You can add
NSE-Cash, Derivative & BSE script on the same market watch.
DEDICATED CUSTOMER CARE:
 Avail services 24 X 7 through our dedicated customer care telephone numbers or
at ez-trade@sbi.co.in
36
ADVANCED TECHNOLOGY PLATFORM:

 Single screen order/trade entry, without going through the hassles of giving
transfer instruction, writing cheques.
 Instant order/trade confirmation gives you similar trading experience as
exchange based software without the burden of overhead and maintenance cost.
 .
DEMERITS
1.Password of your choice must replace the Password given by the Bank at the time
of FIRST log-in. This is Mandatory.
2. You are free to choose the Password of your choice as per the guidelines on the
site. However, you are advised to avoid choosing a password that is generic in
nature, guessable / inferable from the personal data such as name, date of birth,
address, telephone number, driving license / car number etc. You should not use the
Password for accessing other services (for example, connection to the internet or
accessing other websites).
3. You are welcome to access OnlineSBIGlobal from anywhere anytime where it is

legal to do so in the relevant place. However, as a matter of precaution and safety,
you should avoid using PCs with public access.
4. There is no way to retrieve the Password from the system. In case you forget your
Password, you will have to approach the branch to reset the password.
5. You must keep the UserName and Password strictly confidential and known only to
himself / herself. You should destroy the original printed copy of the UserName and
Password, should not allow anyone else to use the UserName and Password, should
not write down the UserName or Password on any device for accessing the
OnlineSBIGlobal service or on anything usually kept with or near it, and should not
write down or record the UserName or Password without disguising it. You should
refer to the security advice provided by the Bank from time to time. The Bank will
not be responsible for any loss sustained by you arising out of a breach of this
condition.
6. The Bank presupposes that log-in using valid UserName and Password is a valid
session initiated by
none other than you to whom the said Username and Password belong.
37
7. All transactions executed through a valid session as defined above will be

construed to have been emanated from you and will be legally binding on you. You
are cautioned against leaving the computer unattended during a valid session.
8. Should you notice that any information relating to your account(s) is incorrect or
discrepant the same should be immediately brought to the notice of the branch (es)
by telephone.
9. You must inform the Bank as soon as reasonably practicable by telephone if you
find or believe that
38
PROGRESS OF STATE BANK OF INDIA, RANCHI DURING 2004-

05 TO 2013-2014
The progress of the State Bank of India is explained in terms of Assets, Deposits,
Loans and Advances, Income, Expenditure, Net Profit, Branch Network, Number
of Employees, Business per Employee and Profit per Employee. The data
presented in shows the growth of assets during 2001-02 to 2011-12. The total
assets of the bank valued at Rs. 459883 crore in 2001-02 registered an upward
growth year by year and by the end of the year 2011-12 thevalue of the assets
stood at Rs. 1792235 crore. In other words, the assets of the bank registered a
growth of 283.351 per cent during the decade. The assets of the bank are in the
form of advances, investments, balance with bank and money at call and short
term notice, cash in hand and balance with RBI, fixed assets and
39
other assets. Advances constitute major part of the total assets. The share of
which varied between 34.69 per cent and 64.96 per cent during the period. The
share of advances to the assets showed an increasing phenomenon during the
years from 2010-11 to 2012-2013. Investments occupy second place with a
share varied between 24.25 per cent and 45.85 per cent during the period. The
share of this asset was the lowest in 2013-14. The share of cash in hand and
balance with
RBI varied between 3.39 per cent and 7.71 per cent during the period, while the
share of balance with bank and money at call and short term notice varied
between 2.21 per cent and 12.36 per cent. The share of fixed assets was less
than one per cent. The share of other assets varied between 4 per cent and 6.15
percent.
40
41
GRAPHICAL REPRESENTATION OF PERFORMANCE

OF SBI MAIN ROAD BRANCH, RANCHI
42
PIE REPRESENTATION OF INCOME AND EXPENDITURE

FOR YEAR 2013-2014
43
CUSTOMER SATISFACTION OF SBI
Demographic and banking profile of the customers of State Bank of India The
demographic profile of select customers of State Bank of India reveals that, 67.2
percent of them are male. In term of age, it is evident that 27.6 percent of the
customers are falling in the age group ranging between 31-40 years. Graduates
accounted for 37.6 percent. Business and profession people dominated the
sample with 44.8 percent and 22 percent respectively.
In term of marital status, 87.2 percent of the respondents were married. The
income statistics revealed that 32.8 percent of the customers were earning their
income between Rs.2,50,001- Rs.5,00,000 yearly. The Banking profile of the
customers reveals that 53.2 percent of the select customers maintain current
account in State Bank of India. 53.6 percent of them are having banking
experience ranging between 6-10 years. The convenience of all the customers
would be greatly enhanced by an electronic, 24 hour branch.
. As a result 90.4 percent of the respondents prefer e-banking rather then

conventional banking system. 59.2 percent of the respondents have e-banking
experience ranging between 1-3 years. 41.6 percent of the respondents use e-
banking channels every day.
44
SCOPE OF BETTERMENT
 The company's strengths and weaknesses and areas of development or
decline are analyzed. Financial, strategic and operational factors are considered.
 The opportunities open to the company are considered and its growth
potential assessed. Competitive or technological threats are highlighted.
 The report contains critical company information - business structure and
operations, the company history, major products and services, key competitors,
key employees and executive biographies, different locations and important
subsidiaries.
 It provides detailed financial ratios for the past five years as well as
interim ratios for the last four quarters.
 Financial ratios include profitability, margins and returns, liquidity and
leverage, financial position and efficiency ratios.
45
46
CONCLUSION
SBI RANCHI is largest private sector bank in India; recently it has acquired the
position of universal bank. Universal bank with extensive network of branches
that provide many different financial services and are principally engaged in
commercial banking, investment banking, securities and even insurance.
SBI RANCHI offers innovative services to customers.
SBI RANCHI believes in technological up gradation in distribution of its
services. Customers of SBI RANCHI are satisfied with various services offered by
SBI RANCHI bank.
SBI also one of the successful private sector banks in India. It is the bank that
has pioneered many services first time in India. SBI was the first to offer a
product called one view by which customers are able to view their accounts in six
banks on one page on their website. SBI Bank also the pioneer, in introducing a
product called Net safe, which makes online shopping on net using debit card,
making it safer.
Housing Loan, which is SBI’s domain, will no longer remain the same
because; SBI RANCHI is slowly capturing the housing loan market. In fact both
the banks do not have very significant difference in terms of
marketing its products to customers and also in terms of customer
satisfaction.
47
OPERATING MARGIN
A ratio used to measure a company's pricing strategy and operating
efficiency. Operating margin is a measurement of what proportion of a
company's revenue is left over after paying for variable costs of production such
as wages, raw materials, etc. A healthy operating margin is required for a
company to be able to pay for its fixed costs, such as interest on debt. It Is Also
known as "operating profit margin." It shows that operating efficiency of SBI is
better than SBI RANCHI. While operating efficiency of SBI RANCHI
is lower than SBI. A financial metric used to assess a firm's financial health by
revealing the proportion of money left over from revenues after accounting for
the cost of goods sold. Gross profit margin serves as the source for paying
additional expenses and future savings. It is also known as "gross margin".
This ratio shows financial position of company. Here, financial position of
SBI is better than SBI RANCHI.
NET PROFIT MARGIN
For a business to survive in the long term it must generate profit. Therefore the
net profit margin ratio is one of the key performance indicators for your
business. The net profit margin ratio indicates profit levels of a business after all
costs have been taken into account. It is worth analyzing the ratio over time. A
variation in the ratio from year to year may be due to abnormal conditions or
expenses. Variations may also indicate cost blowouts which need to be
addressed. A decline in the ratio over time may indicate a margin squeeze
suggesting that productivity improvements may need to be initiated. In some
48
cases, the costs of such improvements may lead to a further drop in the ratio or
even losses before increased profitability is achieved. This ratio is key
performance indicators for business. Key performance means the profit level of
company we can say that performance of SBI is better than SBI RANCHI.
SUGGESTIONS REGARDING HRD IN BANKS:
The staff of SBI RANCHI has to be courteous and polite.
The banks required hiring right kind of people, with adequate knowledge of
banking especially at banks call centers. Training programmes should be devised
for all staff including call centre and Staff of Direct Sales Associates or Associates
of these banks. More importance should be given to upgrade product knowledge
and communication skills in such training programmes. There is a need for
banking staff to have training in the areas of technology and interactive skills.
The marketing personnel selected by direct sales associates of SBI RANCHI and
SBI should be more qualified, in terms of education, product knowledge,
communication skills etc. In the bank the customer ahs his first introduction with
bank at front desk. The person who is presenting the services to the customers is
identified with the services offered so the banker or the professional who is
offering the banking services to the customers should be good in his appearance,
his attitude which should be appealing to the customers. Proper dress code,
perfect surroundings, attractive interiors, ambience and courteous staff at the
counters are must to attract the customers. The personnel at front desk also
need to be developed to deliver service quality. The bank should attract best
talent and retain that talent by right kind of policies in respect of salary,
incentives, etc. Develop service oriented internal processes.
Include employees in the banks vision. Right kind of reward to be provided to

strong service provider.
49
BIBLOGRAPHY
Websites:
 www.google.co.in
 www.wiki.answer.com
 www.sbi.co.in
 www.rbi.org.in
 http://en:wikipedia.orm
 www.ask.com
50
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STATE BANK OF INDIA, MAIN ROAD BRANCH, RANCHI

BRIEF RELEVANCE OF THE TOPIC AND THE ORGANIZATION.

MEMBERS OF BOARD OF CENTRAL BANK

The Objectives Of My Study Are As Follows

 To know about short term loan.

 To study the impact of NPA on the operation of the bank.

 To know why NPA are greater challenges to the bank.

 To study the general reason for asset becoming NPA.

 What are the methods adopted to look after NPA management.

 Primary source of data

Primary data is the data collected by the researcher themselves i.e..

2.Secondary source of data: Secondary source consist of not only published

BRIEF HISTORY SBI

Presidency banks amalgamated on 27 January 1921, and the re-organised

LOGO OF STATE BANK OF INDIA

ORGANISATION STRUCTURE AND MANAGEMENT

• A Chairman and a Vice-Chairman appointed by the Central Government in

• Six directors to be elected in the prescribed manner by the shareholders other

• Eight directors to be nominated by the Central Government in consultation

• One director to be nominated by the Central Government; 11 Varshney and

• One director to be nominated by the Reserve Bank;

Management established at Calcutta, New Delhi, Kanpur, Ahmedabad, Bhopal

LEARNING & DEVELOPMENT

To foster team spirit amongst the employees and to motivate them to

The Bank has total permanent staff strength of 2, 95,980 as on 31st

SBI Main Road Branch Has 50 Employees in the branch including

To meet the requirement of skilled manpower and to tap the emerging

business opportunities the bank has recruited 66 Specialist Management

requirements of officers in operations and specialized areas and helps in

examination for promotion from JMGS I to MMGS II, all promotion

The bank is making continuous efforts to impart knowledge, to develop

SUPPORT SYSTEMS AND INTERNAL COMMUNICATION SYSTEM

Adequate support systems have been provided by the bank to its

internal communication includes: The SBI Monthly Review, Gurukula, SBI

In view of garnering good and excellent relationships with the members of

HUMAN RESOURCES MANAGEMENT SOLUTIONS (HRMS)

STRATEGIC TRAINING UNIT (STU)

2. State Bank Training Management System has been operationalized for

4. Leadership Development Programmes were organized for Top Executives

5. Research studies by the Bank officials were recognized by various

CAPITAL AND FINANCIAL/ASSET STRUCTURE

State Bank of India, the country’s largest commercial Bank in terms of

Please find below Bank’s financial results, analysis of performance and

SBI provide security, trust and competitive rate of interest. Flexibility in

Recurring Deposit provides customers the element of compulsion to save at

SBI HOME LOAN

It offers interest rates concessions on Green Homes in accordance with

SBI’s commitment to Environment protection. The product gives the

SBI CAR LOAN

SBI EDUCATION LOAN

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

SBI LOAN TO PENSIONERS

SBI LOAN AGAINST SHARES/DEBENTURES

The customers can avail of loans up to Rs.20 lakh against their

shares/debentures to enable them to meet contingencies, personal needs

SBI AGRICULTURAL LOANS

agriculture sector in the year 2003-2004. The advances of Agriculture

is repayable over a period of time exceeding 3 years. Under this

SBI INDUSTRIAL LOANS