Final Sbi Report.docx

A project report on

‘Customer Acquisition’ In partial fulfillment of the requirements for the degree of

MASTERS IN BUSINESS ADMINISTRATION University Business School Panjab University

Submitted By: Arun Kumar MBA General

University Business School Panjab University, Chandigarh May 2018 – July 2018

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ACKNOWLEDGEMENT Everyone who makes a project owes a great deal to others, and I am no exception. I would like to express my appreciation to all those who have made my project a possibility. I am deeply in debted to the Multi –Product Sales Team ,SBI, Mohali, who have provided me with a supportive climate needed to complete my project. I would like to acknowledge the help, motivation and encouragement I received from Mr. Priyanshu Kumar, Marketing executive, under whose guidance this project has been undertaken. He helped me to streamline my project and bring into focus the main aspects of my project. He gave me valuable feedback at all stages of my project and guided me to make amends where required and adhere to the standards of excellence. I would also like to thank Mullti Product Sales Team for being there whenever I needed help. There critiques have helped me to give the final project a good shape. They have been immensely patient while sparing their precious time in order to help me understand the problems for which this project was undertaken.Hereby would like to express my sincere gratitude and appreciation to all fortheir constant guidance, construction suggestions and constant help throughout the study.

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Table of Contents COMPANY OVERVIEW:- .......................................................................................................................... 4 History of SBI:- ..................................................................................................................................... 5 BUSINESS OF SBI:- ............................................................................................................................... 7 Domestic presence:- ................................................................................................................................ 7 International presence:- .................................................................................................................... 8 State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong ....................................................... 8 Non-banking subsidiaries ........................................................................................................................ 9 Awards and Recognitions...................................................................................................................... 10 Products and Services ........................................................................................................................... 12 SBI business loans ................................................................................................................................. 13 SBI Credit Card ...................................................................................................................................... 13 SBI Debit Card ....................................................................................................................................... 14 SBI Personel loan................................................................................................................................... 14 SBI Gold loan ......................................................................................................................................... 14 SBI Car Loan .......................................................................................................................................... 15 SBI Loan Against Property ..................................................................................................................... 16 SBI Fixed Deposit................................................................................................................................... 17 SBI Indian Saving Account ..................................................................................................................... 18 SBI Education Loan................................................................................................................................ 18 Net Banking at SBI ................................................................................................................................. 19 PEST Analysis of SBI............................................................................................................................... 21 BCG theory ............................................................................................................................................ 22 Porters five forces theory ..................................................................................................................... 23 SWOT ANALYSIS OF SBI ......................................................................................................................... 25 Weekly Reort........................................................................................................................................28 Data analysis and Interpretation..........................................................................................................31 DIGITILIZATION.....................................................................................................................................41 Internet Penetration In India ................................................................................................................ 42 CONCLUSION..................................................................................................................................... 46

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COMPANY OVERVIEW: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. On April 1, 2017, the State Bank of India, which was India's largest bank, merged with five of its associate banks (State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore), and with the Bharatiya Mahila Bank. This was the first ever large scale consolidation in the Indian banking industry. With the merger, SBI became one of the 50 largest banks in the world (balance sheet size of ₹33 trillion, 278,000 employees, 420 million customers, and more than 24,000 branches and 59,000 ATMs). SBI's market share was projected to increase to 22 percent from 17 per cent. It has 198 offices in 37 countries; 301 correspondents in 72 countries The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two presidencies banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became the State Bank of India. Government of India owned the Imperial Bank of India in 1955, with Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.

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History of SBI:-

The roots of the State Bank of India lie in the first decade of the 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 as joint and were the result of 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 Presidency banks amalgamated on 27 January 1921, and the re-organized banking entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock company but without Government participation.

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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 of India 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. has acquired local banks in rescues. The first was the Bank of Behar (est. ), 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 bank's 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. The State Bank of India and all its associate banks are identified by the same blue keyhole logo. The State Bank of India wordmark usually has one standa typeface, but also utilises other typefaces. On October 7, 2013, Arundhati Bhattacharya became the first woman to beappointed Chairperson of the bank.

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BUSINESS OF SBI: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. 1Lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woolens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favour of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden. Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities. SBI provides a range of banking products through its network of branches in India and overseas, including products aimed at nonresident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout India. Domestic presence:Deposits of USD 400 billion, 278,000 employees, 420 million customers, and more than 24,000 branches and 59,000 ATMs. It has more than 33 billion as capital and reserves. After merger, SBI's commands a market share of more than 23 percent shares of the domestic banking market. University Business School

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International presence:In 1989, SBI established an offshore bank: State Bank of India International (Mauritius) Ltd in Mauritius. SBI International (Mauritius) Ltd amalgamated with The Indian Ocean International Bank, which has been doing retail banking business in Mauritius since 1979 with the new name, SBI (Mauritius) Ltd. Today, SBI (Mauritius) Ltd is having fully integrated 14 branches- 13 Retail Branches covering major cities and town of Mauritius, including Rodrigues, and 1 Global Business Branch at Ebene in Mauritius. Apart from Branch Banking, customers also have the convenience of 24x7 ATM Banking at 18 ATMs across the country. Bank also has a 24x7 robust Internet Banking Channel enabling customers to work from their homes and offices. State Bank of India Branch at Jaffna, Sri Lanka. 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 In 1982, the bank established a subsidiary, State Bank of India, 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% of Commercial Bank of India, with Canara Bank owning the rest. University Business School

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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. In January 2016, SBI opened its first branch in Seoul, South Korea following the continuous and significant increase in trade due to the Comprehensive Economic Partnership Agreement signed between New Delhi and Seoul in 2009. Listings and shareholding: As on 31 March 2017, Government of India held around 61.23% equity shares in SBI. The Life Insurance Corporation of India, itself state-owned, is the largest non-promoter shareholder in the company with 8.82% shareholding.

Shareholders Shareholding Promoters: Government of India 61.23% FIIs/GDRs/OCBs/NRIs Banks & Insurance Companies

11.17% 10.00%

Mutual Funds & UTI

8.29%

Others Total

9.31% 100.0%

Non-banking subsidiaries SBI also has the following non-banking subsidiaries: SBI Capital Markets Ltd SBI Funds Management Pvt Ltd SBI Factors & Commercial Services Pvt Ltd SBI Cards & Payments Services Pvt. Ltd. (SBICPSL) SBI DFHI Ltd University Business School

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SBI Life Insurance Company Limited SBI General Insurance In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the remaining capital), to form a joint venture life insurance company named SBI Life Insurance company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its headquarters in Mumbai.

Other SBI service points SBI has 27,000+ ATMs and SBI group (including associate banks) has 32,752 ATMs. SBI has become the first bank to install an ATM at Drass in the Jammu & Kashmir Kargil region. This was the Bank's 27,032nd ATM on 27 July 2012. Logo and slogan The logo of the State Bank of India is a blue circle with a small cut in the bottom that depicts perfection and the small man the common man - being the center of the bank's business. The logo came from National Institute of Design(NID), Ahmedabad and it was inspired by Kankaria Lake, Ahmedabad. Slogans : "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE NATION BANKS ON US"

Awards and Recognitions SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine in a 2014 ranking. SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012. SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top Banks 2013'. State Bank of India won three IDRBT Banking Technology Excellence Awards 2013 for “Electronic Payment Systems”, “Best University Business School

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use of technology for Financial Inclusion”, and “Customer Management & Business Intelligence” in the large bank category. SBI won National Award for its performance in the implementation of Prime Minister’s Employment Generation Programme (PMEGP) scheme for the year 2012. Best Online Banking Award, Best Customer Initiative Award & Best Risk Management Award (Runner Up) by IBA Banking Technology Awards 2010 SKOCH Award 2010 for Virtual corporation Category for its epayment solution SBI was the only bank featured in the "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010. The Bank of the year 2009, India (won the second year in a row) by The Banker Magazine Best Bank – Large and Most Socially Responsible Bank by the Business Bank Awards 2009 Best Bank 2009 by Business India The Most Trusted Brand 2009 by The Economic Times. 11 SBI was named the 29th most reputed company in the world according to Forbes 2009 rankings Most Preferred Bank & Most preferred Home loan provider by CNBC Visionaries of Financial Inclusion By FINO Technology Bank of the Year by IBA Banking Technology Awards SBI was 11th most trusted brand in India as per the Brand Trust Report 2010.

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Products and Services

SBI presents a wide range of products and services for its customers. It includes savings account, credit cards, fixed deposits, home loan, personal loan, debit card, loan against property, car loan, gold loan and more. Let us learn about these in some detail. SBI is the largest mortgage lender in the country and has helped more than 30 Lakh families in getting the key to their dream home. You can also make your dream home real by taking a home loan at low rate of University Business School

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interest from State Bank of India. Loans can be availed for projects approved by RERA and SBI. Following are the reasons that make SBI home loan a worthy deal- Choose from a range of SBI and RERA approved projects Instant e-approval in three simple steps Calculate home loan EMIs using EMI calculator Transfer outstanding balance from other banks and save on overall interest outgo Facility also available for NRIs Avail Flexipay Home Loan and pay only interest during the pre-EMI period SBI business loans There are two types of loans that SBI offers to help small businesses expand to newer horizons. These include asset backed loans and collateral free loans. Asset Backed Loans- These loans are secured against property and the proceeds can be used for business purposes such as purchasing of fixed deposits, working capital requirement, capacity expansion and more. Up to Rs. 20 crores can be borrowed under this for repayment tenure of up to 180 months. Loan can be availed up to 60% of the value of property. Collateral Free Loans- SBI offers loans to businesses without the need to put up any asset as collateral. Just like asset backed loans, these can be utilized for business purposes like those mentioned above. The amount of loan depends on the credit profile of the borrower. Apart from these, SBI also offers SBI e-Smart for e-Commerce, SME credit card and SBI Fleet Finance Scheme.

SBI Credit Card SBI Card is a joint venture between State Bank of India and GE Capital. It is the second largest credit card provider in the country and offers a wide range of cards that suit the needs of different types of customers. There are cards that focus on shopping, travel, dining, movies and much more. Users can also earn rewards and cashbacks on SBI Card every time they make a transaction. Given below are some of the features of SBI credit cardsUniversity Business School

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Transfer balances from other bank credit cards to SBI card Convert your bigger expenses into easy EMIs using Flexipay Enjoy hassle-free money with convenient repayment options Pay utility bills easily by setting standing instructions Choose from three different types of insurance covers

SBI Debit Card With savings bank account, SBI customers get a complimentary debit card. The type of card depends on the type of savings account that they have. All debit cards are internationally accepted and offer different types of rewards and benefits. SBI Classic Debit Card, SBI Silver International Debit Card, SBI Gold International Debit Card, SBI Platinum International Debit Card and SBI Global International Debit Card are some of the popular debit card options by SBI. It also offers Mumbai Metro Combo Card which helps in easy recharge and convenient commuting in Mumbai Metro Trains.

SBI Personel loan When you require urgent cash, State Bank of India can help you with its personal loan offerings. This loan can be utilized to pay for huge medical bills, wedding expenses, international vacation or for debt consolidation. No security is required for taking personal loans and the application process is also simple. The minimum loan amount has been set as Rs. 25,000 and the maximum amount has been capped at Rs. 15 Lakhs. The processing fee on SBI personal loans is equal to 1 percent of the loan amount and prepayment of loan is also possible at the rate of 3 percent on the amount prepaid. This loan is available for salaried individuals as well as self-employed.

SBI Gold loan Customers can avail gold loan from State Bank of India at highlyaffordable rates of interest. The amount of loan depends on the market University Business School

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value of the gold ornaments pledged to the bank subject to a maximum limit of Rs. 20 Lakhs. Maximum repayment period in case of SBI gold loan is 36 months. Here are some of the reasons that make SBI gold loan a good betAny individual with steady source of income can avail the loan. The minimum age for availing the loan is 21 years. The minimum amount of loan is Rs. 20,000. The repayment of Principal and Interest will begin from the next month of disbursement. Margin in case of gold loan is 25 percent. Pledged gold ornaments are kept safe in secure bank vaults.

SBI Car Loan State Bank of India offers you the best deal in the market when it comes to financing your new car. It can be taken for the purpose of buying a new passenger car, a multi-utility vehicle (MUV) or a Sports Utility Vehicle (SUV). To make it even simpler for people to purchase their dream car, SBI has kept the interest rates lower and application process hassle-free. The longest repayment tenure has been set at 7 years and the loan amount will depend on the on-road price of the vehicle. Moreover, there is no penalty for prepayment or foreclosure of the loan before maturity. The minimum age to avail SBI car loan is 21 years and the maximum age is 65 years.

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SBI Loan Against Property Another way to meet your financial requirements is by taking a loan against your property. Borrowers do not have to provide any documentary evidence for end use of the funds borrowed. Both residential and commercial properties can be pledged to the bank for availing this loan. Minimum loan amount is Rs. 10 Lakhs and maximum amount is capped at Rs. 7.5 Crores. Following are the some benefits of SBI loan against propertyAttractive rates of interest Lowest processing charges Transparent application and operations Interest rate levied on daily reducing balance method No prepayment penalty Rental income may also be considered for taking the loan University Business School

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SBI Fixed Deposit Invest in Bank of India fixed deposits and earn interests. The FD can be taken for any tenure ranging from 7 days to 10 years and the interest rate offered by SBI is also quite attractive. Senior citizens are eligible for 0.50 percent higher interest than regular investors. Customers can also avail the facility of loans against their fixed deposits. The table given below shows SBI FD interest rates for different tenuresUniversity Business School

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SBI Indian Saving Account State Bank of India offers different types of savings accounts according to customers’ needs. Opening a savings account gives you convenience of banking from anywhere around the world through internet banking or mobile banking. The types of savings accounts offered by SBIGeneral Savings Account Special Salary Account Children’s Savings Account 3 In 1 Demat And Online Trading Account Several facilities are offered with SBI savings accounts such as autosweep facility, mobile banking, internet banking, rewards program, personal insurance and health insurance. Any queries or complaints regarding your savings accounts can be resolved by calling 24×7 contact centres.

SBI Education Loan SBI also offers education loans to help students fulfil their dreams of studying in a top institute. This loan covers the tuition fees, exam fee, lab fee, purchase of books/uniform/equipment, travel expenses to University Business School

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study abroad, cost of a two-wheeler up to Rs. 50,000 and more. For studies in India, the maximum amount of loan is Rs. 10 Lakhs and the same for education in a foreign country is Rs. 20 Lakhs. No tangible security is required unless the loan is above Rs. 7.5 Lakhs and the margin is nil for loans below Rs. 4 Lakhs. There is a moratorium period of one year in which the borrower does not have to pay any amount to the bank; loan repayment will begin once the moratorium period is over. Net Banking at SBI Net banking is SBI Bank's Internet Banking service. It provides up-tothe-second account information. Net banking lets the customer manage his/her account from the comfort of his/her mouse - anytime, anywhere. Net Banking services provides access to account information, products and other services (including transactions of non-financial and financial in nature) as advised by the Bank from time to time to the customers through the website of the Bank. Net Banking Services also include the services for Demat account, Credit Cards and loan on the website of the Bank. The SBI Bank has ther app YONO(You Only Need One) also features two versions of a demo facility - one "interactive" and the other "guided" - making it possible for even Internet illiterates to get comfortable with its services. All the customer need to do is Log in using his/her Customer ID and IPIN (Net Banking password).The Customer ID is mentioned on your account statement/ account welcome letter/ chequebook. Some of the transactions you can do through Net Banking are: I. Check your account balances and download 5 year account statement in 5 formats, instantly II. Book Fixed Deposit / Recurring Deposit III. Pay Utility Bills IV. View your Credit Card details and pay your Credit Card Bills V. Recharge your Prepaid Mobile & DTH Connections VI. Invest in Mutual Funds Online VII. Book IRCTC Tickets online VIII. Purchase a Gift Card IX. Pay your Taxes online University Business School

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X. Update your PAN Details online XI. View your Tax Credit Statement (Form 26 AS) XII. Request for a Demand Draft/ Chequebook XIII. Request Stop Payment of a Cheque/ Hotlist you Debit Card/ Credit Card XIV. View your Loan details XV. Apply for IPO XVI. Request for Debit Card PIN Regeneration XVII. Register for Third Party Transfer XVIII. Transfer funds between accounts within SBI Bank and other Bank Accounts These are just some of the 200+ transactions you can do through Net Banking.

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PEST Analysis of SBI Political Political environment of any country always have effect on all the sectors of that country and banking is no exception. With good & stable political environment,banking sector is able to transfer funds more efficiently . One must note that the political instability of the country affect directly the banking sector in India Weakness in Indian political system affects the economic flexibility. Bureaucracy, poor administration, coalition, and power hurts the resilience of India’s framework of policy-making.unstable politics leads to delayed decision making and implementations.Monetary policy of RBI has been restrictive over last couple of years with more intervention by RBI into money market. RBI has made many changes into repo and reverse repo rate to curb inflation and ease the pressure Monetary policy Regulatory frame work Degulation of market Economic India's economic flexibility is damaged by its weak economic structure, with very low per capita GDP. However, this risk is p artially covered with the growth percent that India has & with its characteristic of being a well-diversified economy.Indian economy is getting into expansion mode combined with private sector growth. The Indian private sector has not yet fully taken the benefi t of absolute credit growth ofvthis country. The increase in private sector credit has been very nominal over last few years. There is high credit risk in Indian banking sector owing to the not well developed legal framework that leads to delayed payments and lower recovery. As per S&P reviews on Indian Banking, Indian banking regulations are at par with world standards. RBI has taken noteworthy steps to ensure feasible risk-return ratio of banks Regular change in rate of interest Complex nature of operations Consolidation of industry Social India has been on growth track and banking being an maor part of our economy it has to adjust itself so as to supplement the growth of indian economy. Despite all this growth, Indian rural part have largely deprived with the basic banking facility.where Farmers and small University Business School

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businessman have no other choice than to take loans from local vendors. Also The techcno type consumer provides opportunity as well as poses challenges in the banking system. The consumers are looking for electronic modes of fund transfer along with the personal touch and experience Employment Demographics Working condition Technological environment: With the new changes in technology, banking has seen major changes in operations and has now focused on customer centric approach, mobile banking, ATMs, internet banking,core banking, ERP, etc. and improved efficiency and productivity. Banks are now focusing on cashless, paperless and hassle-free working. As per KPMG, non-cash payment comprised of 91% in value terms compared to 88% in 2013. Also, the payments made through cheques have also come down Establishment of computers, internet connectivity, RTGS and NEFT, MICR Cheques, ECS ,OTP are all significant milestones in present. The continuous advancement in technology changed the way the bank interacts with consumer. Now, we have the virtual banking concept to roll out in market wherein the products or services are available only on electronic modes and these are competitively and attractively priced so as to invite customer to non-branch banking world, thereby reducing costs. With digitalization of transactions, wireless transfer of funds, paper less culture, etc. the banks have opportunity of improving the overall productivity, reduce cost and provide better customer service BCG theory: Cash Cow There is a lot of growth potential for the banking industry because of increasing disposable income of customers, increasing working class, more volatility in other markets also increasing importance of savings and in this banking industry SBI has shown a growth rate of 13% with a 21 % increase in PAT standing to 62.1 cr . Hence it can be concluded that SBI stands at cash cow in BCG matrix. University Business School

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Porters five forces theory 1. Threat of competitors(High) The banking industry is highly competitive. The financial services industry has beenaround for hundreds of years and just about everyone who needs banking servicesalready has them. Because of this, banks must attempt to lure clients away fromcompetitor banks. They do this by offering lower financing, preferred rates andinvestment services. The banking sector is in a race to see who can offer both the bestand fastest services Top Performing Public Sector Banks a. Andhra Bank b. Allahabad Bank c. Punjab National Bank d. Dena Bank e. Vijaya Bank Top Performing Foreign Banks a. Citibank b. Standard Chartered c. HSBC Bank d. ABN AMRO Bank e. American Express University Business School

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2. Threat of new entrants: (Low) Starting a bank in a country like India is not as easy as any other industry, but if anew bank is started that is mainly targeted on Niche Segments might pose a threatto SBI. The new entrants from a different country are always discouraged to takepart in the financial and banking sector by regulatory reforms limiting foreignpresence. Threat from other non banking financial services could also pose a threatespecially equity investment, insurance etc. Entrant of a larger player can cause adrastic effect on the not so strong name in banking or the bank with low income butwould not cause any significant affect on SBI. 3. Threat of substitutes(Low): There are plenty of substitutes in the banking industry.Banks offer a suite of services over and above taking deposits and lending money,but whether it is insurance, mutual funds or fixed income securities, chances arethere is a non-banking financial services company that can offer similar services. On the lending side of the business, banks are seeing competition rise from unconventional companies. Sony, General Motors and Microsoft all offer preferredfinancing to customers who buy big ticket items. But these substitutes do not affect SBI due to its huge brand name and presence in the market. 4. Buying power of suppliers(Low) The suppliers of capital do not pose a big threat, but the threat of suppliers takingaway the human resource. If a talented individual is working in a smaller regionalbank, there is the chance that person will be enticed away by bigger banks,investment firms, changing policies and guidelines of RBI, interest rates, CRR and SLR maintained by the banks as per RBI norms. 5. Buying power of customers(High) With the emergence of larger number of players in the Banking Industry, the switchingcost of the buyer has gone done significantly. The onus is now on the effectiveness andspeed with which the services are provided to the customers. Financial institutions - byoffering better exchange rates, more services, and exposure to foreign capital markets -work extremely hard to get high-margin corporate clients. Options in the Auto FinanceSector also give the customers more power to decide upon the kind of financing.Introduction of specialized products for Women and Students etc also show that thebuyer power is high in this University Business School

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Industry changing scenarios, increasing and decreasing disposable incomes, other attractive options available to customers Competitors and other players in the field:Top Performing Public Sector Banks Andhra Bank Allahabad Bank Punjab National Bank Dena Bank Vijaya Bank Top Performing Private Sector Banks HDFC Bank ICICI Bank AXIS Bank Kotak Mahindra Bank Centurion Bank of Punjab Andhra Bank Allahabad Bank Bank of Baroda

Top Performing Foreign Banks Citibank Standard Chartered HSBC Bank ABN AMRO Bank American Express SWOT ANALYSIS OF SBI: Strength: 1. SBI is the biggest bank in India with more than 14000 branches 2. State Bank Of India (SBI) has a separate act for itself. Thus, a University Business School

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special privilege for the bank 3. Biggest branch network in the country means good reach 4. First public sector to move to CBS 5. SBI has close to 300,000 people employed with it 6. Backing of the Govt of India gives a huge boost to the bank 7. State Bank Of India offers services like consumer banking, enterprise banking, insurance etc 8. It has a good brand visibility and awareness due to extensive marketing 9. SBI has its presence in more than 35 countries with close to 200 office.

Weakness: 1. Immense competition means limited market share growth for SBI 2. International presence is less as compared to global banks. 3. Employees show reluctance to solve issues quickly due to higher job security 4. SBI fails to attract salary accounts of corporate and many government sector employees salary accounts are also shifted to private bank for ease of operations. Opportunities: 1. Pool in talent to replace the going top management to serve the next generation 2. State Bank Of India (SBI) can make better use of CRM, technology and online space 3. Expansion into rural areas too boost its business 4. With focus on India going cashless, the bank can dominate the market with its extensive reach. 5. SBI’s merger with five more banks namely State Bank of Hyderebad, State bank of Patiala, State bank of Bikaber and Jaipur, State of bank of Travancore and State bank of Mysore . Mergers will result in expansion of market share to defend its number one position. SBI is planning to expand and invest in international operations due to good inflow of money from Asian Market. University Business School

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6. Since the bank is yet to modernize few of its banking operations, there is a better scope of using advanced technologies and software to improve customer relations.

Threats 1. Consolidation among private banks can reduce market share for SBI 2. New bank licenses by RBI can affect operations 3. Foreign banks that have sophisticated products 4. SBI operations are often disrupted by slow government decisions and red tapism. 5. FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as people tend to switch to foreign banks for better facilities and technologies in banking service 6. Other government banks like PNB, Andhra, Allahabad bank and Indian bank are showing Customer preference to switch to private banks and financial service providers for loans and mortgages, as SBI involves stringent verification procedures and take long time for processing. 7. New rising financial banking services .

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Weekly Report Week 1 During the first week of my internship I underwent the process of working of the bank and basics of various functions of the bank. I started using SBI net portal online and started understanding all the functions it has to offer from opening FD, RD to applying for credit cards. I also started to study the functioning of payment applications like YONO and SBI buddy. I started sitting with different employees of the bank to understand the basic functioning of the bank and how processes are handled in the bank. I also observed the way to interact with the customer and the tone to use while telling customers about the products and service offered by the bank and how to try to create a need for the customer. I observed the efficiency of the branch manager while dealing with customers as well as employees and learnt that motivation plays a great role in improving performance of the employees especially in banking sector. I also observed the pattern of customer walk-in in the branch and saw the peak timings in which there was high customer walk-in percentage. I also attended their weekly meeting.

Week 2 In this week i was associated with the MPST(Multi Product Sales Team) marketing Head of Car Loan segment of RBO Mohali .He gave me description about cibil score which they used to check while sanctioning loan to customers We visited dealers of Mohali and Chandigarh to generate leads.

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Week 3 In this week i started doing survey of customers visiting branch. This survey was not only limited to customer acquistion but was towards customer satisfaction also .The questionnaire in the form google form was designed and i was collecting responses . I usually met customers already dealing with the bank but they had some problems regarding some services and i noted them down and discussed the problems with the concerned authority. The rest of the time was devoted to creating awareness about Digital banking to customers and resolving problems of customers by interacting with them and seeking help of employees.

Week 4 This week was a light week, the first part of it focused on siting in the branch and analysing the cibil score and documents of the custmers who have applied for car loan , to find out eligible customers. Everday we were easily getting 4 to 5 new customers seeking for loans. The rest of the week was observation and helping employees filling application foms , arranging documents, seeing the way they interact with a customer.

Week 5 This week we started visiting Chandigarh dealers beacause in past 4 weeks chandigarh got 252 leads and mohali got only 133 leads. We covered around all the dealerships and interacted with their sales teams that why they were not giving cases to mohali . Our main attempt here was to sell RBO Mohali car loans here. We would start at around 11 am and come back around 1 pm, the rest of the time was University Business School

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spent compiling data. All the data was collected primarily by directly meeting people. Meanwhile those who were already dealing with SBI bank were asked about Digital banking and if they had any problems related to any other service offered by the bank.

Week 6 In this week all the data collected of Customers was compiled and converted into meaningful targets that could be contacted for further success. Compiling the whole data helped us segment the customers according to the products that could be sold. For example if a customer already had an A/C with SBI then he could be targeted for cross selling other products .After compiling the data i was assigned an employee who would help us in the calling process. The employee would call the person and we would observe and learn how to create a need for the customer.

Week 7 and 8 These were the final weeks of the internship. The 7th week was dedicated to calling customers who had got an offer of credit card free for lifetime. Not only calling was done but we also had a chance to go to the customer without any employee for our help all by ourselves and convert the call. A majority of the last week was dedicated to preparing my report and calling certain credit card customers.

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Data Analysis and Interpretation

1. Do you think SBI caters all your banking needs? *

Customers

40

Yes 60

No

So from above data it shows that 60% of the customers think that SBI caters all there banking needs whereas 40% think that the SBI lacks in providing the services required by them .

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2.What is the reason for choosing SBI?

*

Customers

20 40

Family tradition Incentive schemes Nearness to office/home Just by chance

22

18

So we can analyze that 40% of the customers have choosen SBI just by there family traditions and 18% have choosen SBI by promotional advertisements or incentve schemes .22% have choosen SBI because of ease in accessibility or distribution of branches

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3.Are you aware about the products and services of SBI?

*

Customers

41

Yes 59

No

So the above data shows that only 59% of the customer are aware about the products and services of sbi of we need to enchance our customer knowledge about the new products and services so we can cross sell the products and services .

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4. Do you think sbi offers competitive service charges ?

Customers

45.5 54.5

Yes No

So we can analyze that 54.5%customers are stausfied with competitive service charges .

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5. How satisfied are you with service quality of SBI ?

Customers 15

20

Extremely satisfied 65

Satisfied Neutral

So from above data we can analyze that almost all the customers are satisfied by the products and services of the sbi and around 15% are neutral about there responses.

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6. Do you think the service quality of SBI is at par with its Competitor banks ?

Customers

45 55

Yes No

55% of the customers have given their opinion that sbi services are with par with competitors banks and while 45% have given preference to competitors banks because of pleasing services given by rising private banks and financial companies .

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7. How satisfied are you with the mobile banking services of SBI?

Customers 0 22 48

Extremely satisfied Satisfied

30

Neutral Dissatisfied

The new initiative taken by sbi of mobile banking services have made transactions for customers convient and easily accesible of banking need at any time any where. So this decade is the era is of digitilization.

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8. Which attribute of the bank do you value the most ?

Customers 13.6

22.7

9.1

Quality of service Technology used Trust

54.5

Location

We can see that 54% customers are associated with sbi with trust fator which is the most essential attribute required for retaining the customers and generating new leads. Marketing is all about mainiating goods relations .

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9. How satisfied are you with the attitude of SBI staff towards customers ?

Customers 0 2 20

Extremely satisfied 46

Satisfied Neutral Dissatisfied Extremely dissatisfied

32

We can analyse that 46% customers are satisfied with the attitude of Sbi staff towards customers. 32% are neutral about there response and 22% are dissatisfied with services rendered by SbI staff.

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10. Which Bank do you prefer for taking loan?

Customers

20

40

SBI HDFC AXIS

15

OTHERS

25

We can interpret that only 40% customers prefer to take loans from SbI and others prefer other banks for taking loans.

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DIGITALIZATION Introduction In today‟s world, customers, employees and organization are much more connected and this is clearly changing the way they do business, communicate with stakeholders and collaborate with partners. Customers and employees access multiple devices and juggle frequent instant messaging, browse the internet for news updates, and utilize social media, for positioning and branding; while organisations are increasingly dealing with global and virtual teams across multiple platforms and online or cloud-based processes. This is propelling a dramatic shift in the way that business is conducted and the way that employees work. Customers are increasingly seeking anywhere /any time options and employees want greater flexibility to perform their work in their own time – in locations which best suit their lifestyle. One of the key technological enablers for this – for both companies and their employees – is the use of device agnostic, online or webbased tools. For insurers, we believe the opportunity lies in leveraging the use of digital technology and web-based collaboration tools to:

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Internet Penetration In India Since the late 1990s, the internet has not only provided users with online experiences such as email, online search and general browsing but has also played a major role in enabling human interaction and reshaping traditional communications media such as film, television, music and telephone. The emergences of new digital technologies and websites have accelerated forms of human interaction through online forums, instant messaging, and social networking (since the mid-2000). With over 460 million internet users, India is the second largest online market, ranked only behind China. By 2021, there will be about 635.8 million internet users in India. Despite the large base of internet users in India, only 26 per cent of the Indian population accessed the University Business School

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internet in 2015. This is a significant increase in comparison to the previous years, considering the internet penetration rate in India stood at about 10 per cent in 2011. Furthermore, men dominated internet usage in India with 71 per cent to women‟s 29 per cent

Of these active internet users in India, 442.7 m are the active mobile internet users. This clearly shows that the penetration of the mobile internet is very high. About 323 million people in India accessed the internet through their mobile phones in 2016, which corresponds to about 24.3 per cent of the country’s population. Both figures are forecast to increase in the coming years, with projections to amount to 524.5 million and around 37.4 per cent respectively in 2021. Mobile internet usage in India varies according to people's living areas. As of 2016, India had an estimate of 262 million mobile internet users living in urban communities, and 109 million living in rural areas.

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With an estimate of 43.8 per cent digital buyer penetration in 2016, online shopping is also a popular online activity of Indian internet users. Retail ecommerce sales in India amounted to about 16 billion U.S. dollars that year and are projected to surpass 45 billion U.S. dollars in 2021. Mobile shopping has gained space in the country as well. About 49 per cent of Indian consumers stated using their mobiles for purchasing goods or services. This share is above global average – which stood at 38 per cent as of 2016 – and the second highest figure in the world, only behind China

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The projected figure clearly shows that for every industry in India, it is better to step onto the digital way. State Bank Of India is also one of the oldest banks to increase the penetration of the customers in India, it should also go the digital way.

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CONCLUSION From the analysis part it can be conclude that customers have a good respond towards SBI advance products in Mohalii. SBI is in 1st position having large number of customers & providing good services to them. The bank has a wide customer base, so the bank should concentrate on this to retain these customers and focus on cross – selling. In present scenario SBI is the largest advance product issuer in India. Within a very short period of time the achievement made by SBI is excellent, what a normal bank cannot expect, but it is being done by SBI. It happens due to employee dedication towards the organization, fastest growing Indian economy, & brand image. To be the largest advance product issuer, SBI should focus on Launch Innovative product  Customized advance products  Better customer services  Fastest customers problem solving techniques  Customer retention

Apart from all the above, SBI believe in providing good customer services to their customers which is a key factor for success in future.

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REFERENCES  https://www.statista.com/topics/2157/internet-usage-in-india/  http://www.sbi.co.in/sbi/content/8_0 

Boufounou, P. V. (1995). Evaluating bank branch location and performance: A case study. European Journal of Operational Research, 87(2), 389-402.



Kaur, J. A CASE STUDY ON MEGA MERGER OF SBI WITH ITS ASSOCIATE BANKS AND. Retrieved from http://www.tips.edu.in/download_pdf/186.pdf



Marous, J. (n.d.). Banks Transforming Branch Networks to Improve Efficiencies _ Bank

Innovation

_

Bank

Innovation.

Retrieved

June

19,

2018,

from

https://bankinnovation.net/2012/09/banks-transforming-branch-networks-to-improveefficiencies/

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