CHAPTER – 1

Introduction
CHAPTER : 1 – INTRODUCTION
1.1 Meaning of Loans and Advances
1.2 Definition of Loans and Advances
1.3 History of Satat Bank of India
1.4 Service Provided by SBI Bank
1.5 Advantages of SBI Bank
1.6 Disadvantages of SBI Bank
1.7 Company profile
1.8 SWOT Analysis of SBI Bank
 INTRODUCTION
The term ‘loan’ refers to the amount borrowed by one person from another. The amount is in
the nature of loan and refers to the sum paid to the borrower. Thus, from the view point of
borrower, it is ‘borrowing’ and from the view point of bank, it is ‘lending’. Loan may be
regarded as ‘credit’ granted where the money is disbursed and its recovery is made on a later
date. It is a debit for a borrower. While granting loans, credit is given for a definite purpose
and for a predetermined period. Interest is charged on the loan at agreed rate and intervals of
payment. ‘Advance’ on the other hand, is a ‘credit facility’ granted by bank. Banks grant
advances largely for short-term purpose, such as purchase of goods traded in and meeting
other short-term trading liabilities. There is a sense of debt in loan, where as an advance is a
facility being availed of by the borrower. However, like loans, advances are also too repaid.
Thus a credit facility repayable in installments over a period is termed as loan while a credit
facility repayable within one year may be known as advances.
Loans and advances granted by commercial banks are highly beneficial to individuals, firms,
companies and industrial concerns. The growth and diversification of business activities are
effected to a large extent through bank financing. Loans and advances granted by banks help
in meeting short-term and long term financial needs of business enterprises.
We can discuss the role played by banks in the business world by way of loans and
advances as follows :-
a. Loans and advances can be arranged from banks in keeping with the flexibility in
business Operations. Traders may borrow money for day to day financial needs
availing of the facility Of cash credit, bank overdraft and discounting of bills. The
amount raised as loan may be Repaid within a short period to suit the convenience of
the borrower. Thus business may be Run efficiently with borrowed funds from banks
for financing its working capital Requirements.
b. Loans and advances are utilized for making payment of current liabilities, wage and
salaries Of employees, and also the tax liability of business.
c. Loans and advances from banks are found to be ‘economical’ for traders and
businessmen, Because bank charge a reasonable rate of interest on such
loans/advances. For loans from Money lenders, the rate of interest charged is very
high. The interest charged by commercial Banks is regulated by the Reserve Bank of
India.
 d. Banks generally do not interfere with the use, management and control of the
borrowed Money. But it takes care to ensure that the money lent is used only for
business purpose.
e. Bank loans and advances are found to be convenient as far as its repayment is
concerned. This facilities planning for future and timely repayment of loans.
Otherwise business Activities would have come to halt.
f. Loans and advances by banks generally carry element of secrecy with it. Banks are
duty-Bound to maintain secrecy of their transactions with the customers. This
enhances people’s Faith in the banking system.

1.1MEANING OF LOANS & ADVANCE

Loans and advances are financial instruments utilized by individuals, businesses, and
organizations to obtain funds for various purposes. They represent a form of credit provided
by financial institutions such as banks, credit unions, or other lending entities.
1. FINANCIAL TRANSACTIONS

Loans and advances involve a financial transaction wherein one party, often referred to as the
lender or creditor, provides funds to another party, known as the borrower or debtor. This
transaction typically involves an agreement outlining the terms and conditions of the loan,
including the amount borrowed, interest rate, repayment schedule, and any other relevant
terms.
2. PURPOSE
These financial instruments are utilized for a wide range of purposes, including but not
limited to:
 Personal Loans:
 Used by individuals for expenses such as education, home renovations, medical bills,
or debt consolidation.

 Business Loans:
Obtained by businesses to finance operations, expansion, equipment purchases,
inventory management, or working capital needs.

 Agricultural Loans:
Provided to farmers for purchasing machinery, seeds, fertilizers, or other agricultural
inputs.
 Commercial Loans:
Utilized by commercial enterprises for real estate development, construction projects,
or investment in infrastructure.
 Consumer Loans:
Including credit card advances, payday loans, or other forms of short-term financing
for immediate consumption needs.

3. TYPES OF LOANS AND ADVANCES

Secured Loans:
Backed by collateral such as real estate, vehicles, or other assets, which the lender
can seize in case of default.

Unsecured Loans:
Issued based on the borrower’s creditworthiness and financial history, without
requiring collateral.

Revolving Credit:
Offers a pre- approved credit limit that can be accessed repeatedly, with the borrower
repaying and reusing the funds as needed.

Term Loans:
Involve a fixed repayment schedule over a specified period, with regular installment
payments covering both principal and interest.

Overdrafts:
Allow account holders to withdraw more funds than their account balance, up to a
predetermined limit, usually associated with checking accounts.

4. INTEREST AND REPAYMENT

Loans and advances typically accrue interest over the loan term, representing the cost of
borrowing. Interest rates can be fixed or variable, depending on the terms of the loan
agreement. Repayment schedules vary based on the type of loan, with options for monthly,
quarterly, or annual installments.Failure to repay the loan according to the agreed-upon terms
can result in penalties, additional fees, or legal action by the lender.

5. Regulation and Oversight:

Loans and advances are subject to regulatory oversight by government agencies or central
banks to ensure fair lending practices, consumer protection, and financial stability.
Regulatory frameworks may include requirements for disclosure of terms, interest rate caps,
anti-discrimination laws, and measures to prevent predatory lending practices.
In summary, loans and advances play a vital role in facilitating economic activity by
providing individuals, businesses, and organizations with access to capital to pursue their
financial goals and objectives. However, it’s essential for borrowers to carefully consider
their borrowing needs, evaluate the terms and conditions of loan agreements, and manage
their debt responsibly to avoid financial strain and potential default.

1.2 DEFINITION OF LOANS & ADVANCE

Loans and advances refer to financial instruments provided by financial institutions, such as
banks, to individuals or businesses. Loans are typically funds lent to borrowers with an
agreement to repay the principal amount plus interest over a specified period. Advances are
short-term loans, often provided to businesses, usually with a shorter repayment period and
may not always involve interest. Both loans and advances are crucial for funding various
personal and business activities, including investments, purchases, and working capital
needs.

1.3 HISTORY OF SBI BANK

State Bank of India (SBI) is one of the oldest and largest banks in India. Here’s a brief
history:
1. PREDECESSORS
The origins of SBI can be traced back to the early 19 th century when the Bank of Calcutta
(later renamed Bank of Bengal) was established in 1806. Over the years, two other
presidency banks, the Bank of Bombay (established in 1840) and the Bank of Madras
(established in 1843), were also formed.
 2. MERGER
In 1921, these three presidency banks were amalgamated to form the Imperial Bank of India,
which served as the central bank for the British government in India.
3. NATIONALIZATION
After India gained independence in 1947, the Imperial Bank of India was nationalized in
1955 and renamed the State Bank of India (SBI).

4. EXPANSION AND GROWTH

SBI underwent significant expansion and modernization under the leadership of prominent
figures like Mr. S.S. Nadkarni and Mr. D.T. Lakdawala. It expanded its branch network
throughout the country and introduced various innovative banking products and services.

5. GLOBAL PRESENC
SBI gradually expanded its international presence, establishing branches in various countries
and forming subsidiaries and joint ventures to cater to the needs of non-resident Indians
(NRIs) and facilitate international trade and investment.
6. REFORMS AND MODERNIZATION
In the 1990s, SBI underwent reforms and modernization to adapt to the changing banking
landscape in India. It embraced technology to improve operational efficiency and customer
service.
7. RECENT DEVELOPMENTS
In more recent years, SBI has continued to adapt to technological advancements, offering
digital banking services and expanding its range of financial products to meet the evolving
needs of its customers.
Throughout its history, SBI has played a pivotal role in India’s economic development by
providing banking services to diverse segments of the population and supporting various
sectors of the economy.

1.4 SERVICE PROVIDED BY SBI BANK

State Bank of India (SBI) is the largest public sector banks in India. It was the first bank
established in India as Bank of Calcutta in 1806. Headquartered in Mumbai, the bank has
over 24,000 branches, 59,000+ ATMs and 195 foreign offices across 36 countries after the
merger of its 5 associate banks and Bhartiaya Mahila Bank (as on 1 st April, 2017). State Bank
of India (SBI) offers a plethora of products and services such as savings account, credit cards,
fixed deposits, personal loan, home loan, business loan, debit card, loan against property, car
loan, gold loan, mudra loan and more. wide range of financial services including personal
banking, corporate banking, agricultural banking, international banking, and more. Some of
the services provided by SBI include savings accounts, current accounts, loans, credit cards,
investment products, insurance, wealth management, and digital banking solutions like
internet banking and mobile banking.extensive array of services catering to various financial
needs of individuals, businesses, and institutions. Here’s a detailed overview:
 Savings Account
State Bank of India provides an array of savings accounts for minors and adults. This
range includes SBI Basic Savings Account, Small Savings Account, Savings Plus
Accounts and more. On this page, you can check and compare the latest SBI savings
account interest rate applicable in 2024 and also learn how to open SBI savings account
online or offline, documents required and other details.

SBI SAVINGS ACCOUNT INTEREST RATE 2024

SBI Savings Account Rate of interest

Balance (P.a.)
Balance less than Rs.
2.70%
10crores
Balance Rs. 10 crores and
3.00%
above

NOTE : Interest rates are updated as on 12th March 2024

Minimum Balance in SBI Savings Account
The minimum average balance to be maintained in SBI Savings Account is Nil. This signifies
that no penalty shall be charge by the bank, even if the balance in your savings account
reaches the minimum or even zero.

Types of SBI Savings Account

State Bank of India has put forth 6 different types of saving account options for its
customers. Accounts are classified in a way to make sure inclusion of economically weaker
sections of the society (via Pradhan Mantri Jan Dhan Yojana) so that their finances can be
managed better. Along with it, minors are also included (SBI Savings Account for Minors) to
inculcate the habit of savings in them.

Types of SBI Savings Account

1. Basic savings Account ( under Pradhan mantri Jan dhan

yojna )

2. Basic small savings Account

3. Savings Bank Account

4. Savings Account for minors

5. Savings plus Account

6. Insta plus video KYC savings Account

Types of SBI Savings Account – Features & Benefits

People should always open a savings account that meets their requirements and where they
can benefit the most. One should go through all types of SBI savings accounts before
selecting one. Below mentioned are the various kinds of SBI savings accounts :
1. Basic savings Account ( Pradhan mantri Jan Dhan yojna )

This SBI savings account is basically meant to strengthen the poorer sections of society by
providing them with the option to start their savings.
2. Basic small savings Account
This savings account is also meant for economically-weaker sections of society but is
designed specifically for those who do not have officially valid KYC documents and face
hardships in opening a bank account.
3. SBI regular savings Bank Account
This account is the one that is generally offered to an applicant when he/she applies for an
SBI savings account. This is a basic savings bank account that provides facilities like SMS
banking, internet banking, credit card and more to the general public. Valid KYC documents
are required to open this account.
4. SBI Savings Account for minors
This SBI savings account has been designed to help children learn about the importance of
money and savings. It also allows them to experiment with purchasing power so that they can
learn to manage their finances well in future. Parents’ or guardian’s supervision is required to
open and operate this account.
5. SBI Savings plus Account
This account is a product of the SBI Multi Option Deposit Scheme. In it, the customer’s
savings account or current account is used to create and link a term deposit account. This
fixed deposit has a tenure of 1-5 years. This is to encourage the habit of investment. A loan
against MOD deposit is also offered to help customers manage their finances better.
6. Insta plus video KYC savings Account
This SBI savings account can be opened online through Video KYC with only Aadhaar and
PAN (physical) details. The applicant is not required to visit the bank branch for any
verification.
Eligibility criteria to open SBI Savings Account
The eligibility criteria for opening a savings account with the State Bank of India are as
follows:
 You should be a resident Indian above 18 years of age and should not have any
existing relationship with the bank.
 You should have a valid Aadhaar Number (linked with a mobile number registered in
your name) and a valid Permanent Account Number (PAN).
 You can only have one Insta Savings Account and no other accounts at a given time.
Note: Not applicable to SBI Savings Account for Minors and Basic Small Savings Account.
Documents Required for opening SBI Savings Account
You need to carry a photocopy of all the documents with their originals at the time of account
opening. These documents need to be self-attested and attached with the account opening
form. Below is the list of documents required for opening SBI savings account.

For individuals
Proof of identity ( any of the following ) :
 Passport
 Voter ID card
 PAN card
 Driving licence
Proof of address ( any of the following ) :
 Credit card statement
 Salary slip
 Income/wealth tax Assessment order
 Electricity Bill
 Telephone Bill
 Bank account statement
 Letter from a reputed employer
 Letter from any recognized public authority
 Ration card
How to open SBI Savings Account
An applicant can either open new SBI savings account online through SBI YONO app or
visit a bank’s branch to open a full-fledged savings account. It is noteworthy that not all
savings accounts can be opened online. Let us find out how to open SBI savings account
through different methods.
How to open SBI saving account online
You can apply for SBI savings account online through SBI mobile banking. Only NRE and
NRO accounts can be opened through SBI netbanking. The basic steps involved in applying
for a new savings account through SBI YONO app are as follows:
1. Download SBI YONO app in your smartphone (preferably having the same
mobile number linked with Aadhaar)
2. Click on the “New to SBI—Open Savings Account” option and select “Without
Branch visit”
3. Now select the “Insta Plus Savings Account” option in the savings account type
 4. Enter your Aadhaar and PAN after which an OTP will be sent on the mobile
number registered with Aadhaar
5. Provide the OTP to authenticate
6. Now schedule a video call and complete the video KYC (Keep your original
Aadhaar card and PAN card for verification)
7. Once verified, your account will be opened and you can carry out transactions
instantly.
How to open SBI Savings Account offline
Even though there are options to open SBI savings account online, you still may have to visit
the SBI branch to open most of the accounts or convert an existing online account into a full-
fledged savings account. Below-mentioned are steps that you need to follow to open SBI
savings account offline:
1. Visit the SBI branch and fill the SBI Savings Account form
2. Provide basic details and choose the account type that you intend to open
3. Provide self-attested copies of your Aadhaar card and PAN card
4. Submit the form along with deposit slip (in case of cash) or demand draft and other
proof of identity, income and residence
5. Upon successful verification by bank officials, your account will be opened
The bank will provide you the SBI savings account welcome kit containing the SBI ATM
card, chequebook and other documents for future reference.

CURRENT ACCOUNT
(SBI) offers a wide variety of current accounts to cater to the banking needs of all the
individuals. A current account is majorly meant for businessmen, companies, firms etc. that
undergo numerous daily banking transactions. SBI Current accounts are only meant for the
convenience and business needs of individuals and not for earning interest or any kind of
savings, hence these are the non-interest bearing accounts.

Table of content
 Types of SBI
current Account
 Comparison of SBI
current Account
variants
 SBI current
Account eligibility
criteria
 Document required
four current
 account opening in
SBI
 How to open
current account in
SBI?
 Frequently Asked
questions ( FAQS )

Types of SBI current account

SBI provides customer centric current account product variants catering to the needs of its
customers. SBI current account minimum balance requirement is different with every variant.
Given below is the detailed explanation of the current account variants offered by SBI.
Regular current Account
The Regular Current Account is ideally meant for professionals, small businessmen, traders
etc. requiring a current account with all the banking facilities at minimal cost.

Normal current Account

Normal Current Account provides the basic banking facilities to all the customers at nominal
cost. The account holders get free access to most secure and fastest corporate internet
banking services.
Gold current Account
The Gold Current Account is suitable for professionals, premium businessmen, traders etc.
who are majorly looking for expanding their operations and carrying out bulk transactions. It
helps in reducing transaction cost significantly.
Diamond current Account
Diamond Current Account is most suitable for elite businessmen, large traders, top
professionals and more. It is meant for carrying out bulk transactions conveniently and
processing a large number of payments.
Platinum current Account
Platinum Current Account is ideal for customers who intend to have the best of products for
their business. The account is efficient in handling large value transactions and bulk
payments. This account offers all the major banking services for free.
Comparison of SBI current Account variants
SBI current Account eligibility criteria
All individuals possessing acceptable KYC documents are eligible for opening a current
account in SBI. Below given is the list of business entities (customers) who can open SBI
current account:
 Sole Proprietorship Firm
 Partnership Firms
 Limited Companies
 Societies / Clubs / Associates
 Hindu Undivided Family (HUF)
 Unincorporated Association or Body of Individual
 Executors, Administrators and Liquidators
 Trust
Documents Required for current Account opening in SBI
Below mentioned is the list of documents one needs to submit at the time of opening current
account with SBI.

Documents Required
 KYC documents
based on type of
application
 Photograph

How to open current Account in SBI?

The customers intending to open a current account with SBI can do so by submitting
information online and printing the SBI current account opening form and thereby visiting
the nearest bank branch with the printed form and applicable KYC documents. Below listed
is the detailed explanation of the steps required.
Step 1: Visit the official website of SBI and go to the ‘Customer Application Form’ section.
Step 2: Choose the prefered customer type (Partnership Firm, Proprietorship Firm or HUF).
Step 3: Fill the ‘Customer Information’ section and proceed further.
Step 4: Fill the ‘Account Information’ section and proceed further.
Step 5: After successful completion, an SMS will be sent to the applicant’s mobile number
along with the ARN (Application Reference Number).
Step 6: the filled SBI Current Account opening online form and take a print out (SBI Current
Account opening form download pdf available on website).
Step 7: Submit the printed form to the nearest bank branch along with the applicable KYC
documents for SBI Online Current Account opening.

TYPES OF LOANS:
Home loan
State Bank of India home loan interest rates start from 8.40% p.a. onwards for tenures up to
30 years and for loan amounts up to 90% of property’s cost. State Bank of India offers
various special home loan products for defence personnel, government employees, non-
salaried individuals, applicants buying ‘green’ homes and individuals living in hilly/tribal
areas. Some of the other benefits that come with SBI home loans include interest rate
concessions of 0.05% to women borrowers, home loan overdraft facility, balance transfer
facility, top-up facility, etc.
Personal loan
State Bank of India Personal Loan is offered @ 11.15% p.a. onwards for loan amount of up
to Rs 20 lakh and tenure of up to 6 years. The bank also offers pension loan of up to Rs 14
lakh for tenure of up to 7 years. Select existing customers of State Bank of India can also
apply for SBI Pre-approved Personal Loan online through SBI YONO app.
Loan against property
State Bank of India offers Personal Loan Against Property (P-LAP) @ 10% p.a. onwards for
tenures of up to 15 years. This loan cannot be availed for meeting business requirements.
Gold loan
State Bank of India offers gold loan @ 8.75% p.a. onwards for loan amount of up to Rs 50
lakh. The tenures of SBI gold loan can go up to 3 years (in case of EMI-based loan) and for 3
months, 6 months and 12 months in case of loans availed with bullet repayment option.
Applicants can avail SBI gold loan by pledging their gold ornaments or even gold coins by
various banks.
Education loan
State Bank of India is an Indian multinational banking and financial service company. It is
owned by the government and therefore follows government’s push for education
passionately. State Bank of India has many attractive schemes that cater to foreign bound
students, domestic students, and students who wish to take skill development classes. SBI
offers education loan at an attractive interest rate with student-centric attitude when it comes
to marking tenure of education loan.
Two – wheeler loan
The State Bank of India commonly referred to as SBI, along with its Associates, the State
Bank of Bikaner and Jaipur, the State Bank of Patiala, etc. accounts for an estimated 60% of
all banking transactions that take place across the country. The history of SBI dates back to
the British Rule of India and it became a nationalized entity in the 1955 through an Act of
Parliament. Due to its or its associate bank’s presence no matter what part of the country you
are in, it is a household name and well recognized not just in India but also around the world.
Some of the key international branches of The State Bank of India include but are not limited
to those located in Sri Lanka, New York, Chicago, Los Angeles, Sydney, The Bahamas,
Bahrain, Frankfurt, Toronto, London and Paris.
The diverse range of services offe”ed by the State Bank of India to its customers includes
credit card services under the SBI Cards Brand, insurance services under SBI Life and SBI
General Insurance. In terms of banking services, SBI and its associates provide complete
range of banking services including but not limited to savings, current, NRE/NRO accounts,
international banking, rural and agri-banking and loans ranging from home loan to 2-wheeler
loan.
Need for 2 wheeler loans
In India, two-wheelers are more than just a commuting choice; they are in many cases a
necessity. Especially due to poor and mostly overcrowded public transport in most major
cities, owning a two-wheeler has become a necessity for Indians. In many ways, a two-wheel
transport is a greener as well as cheaper alternative to owning a car or hiring a cab in fact in
some parts of India, commuting using a motorcycle or scooter is even cheaper than using
public transport.
But it is not just big cities where 2 wheelers are the norm, a major chunk of 2 wheeler sales
in India in fact occur in the rural areas, where narrower and roads make using a motor
cycle/scooter the preferred transportation option. However, with rising prices, 2 wheelers are
still an expensive proposition for certain sections of Indian society. It is for these
economically weaker sections and for young individuals who are just starting out on their job
that 2 wheeler loans are marketed by Banks and NBFCs across India including SBI.
Purpose of SBI 2 wheeler loan
State Bank of India’s 2 wheeler loan is designed to help individuals all over India purchase a
new motorcycle or scooter of their choice with minimum hassle. Apart from
scooter/motorcycle other 2 wheeled transport including moped and battery-operated vehicles.
Business loan
SBI offers secured business loans to self-employed individuals and business enterprises.
Some of the business loan products offered by SBI include export packing credit, channel
financing, term loan, bank guarantees, letter of credit, lease rental discounting, construction
equipment loan, corporate loan, asset backed business loan, dropline overdraft, warehouse
receipt finance, etc. The business loan schemes offered by the lender include SBI Business
Loans for Channel Financing, SBI Construction Equipment Loan, SBI Corporate Loan, SBI
Asset Backed Business Loan, SBI Lease Rental Discounting, SBI Healthcare Business Loan,
SBI Business Loan for Fleet Finance, SBI Business Loan for Warehouse Receipt Finance,
SBI SME Car Loan, etc.
Car loan
SBI car loan features
These are the salient features of the car loan given by SBI bank:

 Multiple Options to choose from:

State bank Of India offers multiple Car loan options to choose from for financing the
purchase of both new as well as used cars.
 Lowest interest rates:
Car loan interest rates by SBI bank are very lucrative and are charged at the lowest possible
rates. State Bank of India car loan interest rates are offered at both fixed as well as flexible
rates. The prevailing SBI Car Loan interest rates range between 10.40% and 10.45%.
No advance EMI (advance monthly car loan payments): The State Bank of India car loan
borrowers enjoys flexible options to pay EMIs. Car loans provided by SBI come with hassle
free options as per which the customer does not have to pay advanced EMI at the time of
taking SBI car loan. Further, they even get the liberty to pay off their EMIs at any time
during the month.
 Repayment tenure:
The State Bank of India has designed the car loan product keeping the convenience of the
borrowers in mind. For the same, SBI bank offers the longest car loan repayment period of 7
years or 84 months.
 Financing the Car’s ‘On-Road’ Price:
State Bank of India finances car loan of a borrower on 85% of On-Road price that includes
cost of registration/annual maintenance contract/total service package/cost of accessories
/charges for insurance and extended warranty.
 Interest is calculated on daily reducing balance:
 Another added advantage of SBI car loans is that the customers are charged interest at daily
reducing balance.
 No-foreclosure Charges:
Certain SBI car loan schemes offer no fore-closure charges; which mean car loan borrowers
do not need to pay extra for pre-paying the borrowed car loan amount.
 Optional SBI life cover:
Along with SBI Car Loan, State Bank of India even offers an option of choosing SBI life
cover by paying a little extra cost.
 Overdraft Facility:
With the SBI Car loans, borrowers can even avail overdraft facility at the State Bank of
India.
SBI car loan scheme
These are the different SBI car loan schemes available:

 SBI New Car Loan Scheme

 SBI Combo Loan Scheme
 SBI NRI Car Loan Scheme
 SBI Certified Pre-owned Car Loan
 SBI Loyalty Car Loan Scheme
 SBI Nano Youth Car Loan Scheme
To cater to the specific needs of the customers, SBI bank offers different options to those
seeking a car loan. The different car finance plans by the State bank of India include SBI
New Car Loan Scheme, SBI Combo Loan Scheme, SBI NRI Car Loan Scheme, certified Pre-
Owned Car Loan from SBI Bank, SBI Nano Youth Car Loan Scheme .
SBI New car loan scheme
SBI New Car Loan Scheme is for purchasing new cars- ranging from small compact cars to
larger ones such as MUVs (Multi Utility Vehicles) and SUVs. Customers can obtain SBI
Bank loan for a new car at attractive terms and conditions set by the State Bank of India.
Highlights of SBI New car loan scheme:
1. Certified SBI New Car Loan Scheme is provided to applicants between 21 to 65
years.
2. For SBI Combo NewLoan Scheme, State Bank of India sanctions 85% On-Road
price of car & 2-wheeler.
 3. Self-employed, salaried, and agriculturist individuals are eligible to apply for SBI
NewCar Loan Scheme
4. Under the SBI New Car Loan Scheme, bank charges 0.60% above 1 year MCLR
i.e. 9.80% p.a. from men; and 0.55% above 1 year MCLR i.e. 9.75% p.a. from
women.
5. Minimum required income of primary applicant by himself/herself or along with
co- applicant is Rs. 2 lakhs.
6. Loan is provided for a maximum of 7 years or 84 months.
Process to apply for SBI car loan
PaisaBazaar has simplified the process of applying for SBI car Loan. With just few clicks,
you can apply for SBI Car Loans online and get instant approvals. You need to provide your
basic details, with the details of the car you are looking to buy, and your budget for the car.
We will bring you the best offers available at SBI for new or used car loans as per your
budget and requirements.

INVESTMENT
Fixed deposit
SBI offers FD interest rates of 3.50%-7.10% p.a. to the general public and 4.00%-7.60% p.a.
to senior citizens for tenures ranging from 7 days to 10 years. The interest rate of SBI Tax
Saving FD is 6.50% p.a. for the general public and 7.50% p.a. for senior citizen depositors.
The bank also offers various fixed deposit products for NRIs, such as NRO, NRE, RFC and
FCNR (B) fixed deposits. SBI accepts FCNR (B) fixed deposits in US Dollars (USD), British
Pound Sterling (GBP), Euro, Canadian Dollar (CAD), Australian Dollar (AUD) and Japanese
Yen (JPY). The bank accepts RFC fixed deposits in USD, Euro and GBP.
Recurring Deposit
SBI offers Recurring Deposit at interest rates of 7.25% to 7.60% p.a. to senior citizen
depositors and 6.50% to 7.10% p.a. to other depositors with minimum monthly deposit of Rs
100. The tenure for SBI RD ranges from 1 year to 10 years. The SBI Recurring Deposit
Scheme allows depositors to save money over time by making regular monthly deposits of a
defined amount and have sufficient funds at the end of the tenure to meet their financial
goals.

Cards
Credit card
SBI Card is a leading credit card issuer in India offering credit cards with benefits across
multiple categories. SBI Simply Save, SBI Simply Click, Cashback SBI Card, SBI Card
ELITE and BPCL SBI Card are some of the most popular SBI credit cards. Since each card is
focused on unique individual need such as shopping, travel, fuel, groceries, etc., choosing the
right card could be confusing. To help you make an informed decision, here we have listed
the top SBI credit cards. You can compare and apply for select SBI Credit Cards at
Paisabazaar.
Debit card
SBI offers various types of debit cards specially designed to cater to the needs of its
customers.Each debit card comes with a lot of benefits, flexible withdrawal limits, rewards
on shopping,Traveling, etc

Banking
Balance enquiry
Customers of State Bank of India get a number of options to check their savings account
balance online and offline to stay updated with their savings. SBI balance enquiry can be
done through netbanking, mobile banking, phone banking, SBI Quick SMS banking and
other methods. Let us understand how to check SBI account balance conveniently through a
method of our own choice.
Mobile Banking
Customers of State Bank of India or SBI are offered with mobile banking facilities via apps
like SBI Yono and BHIM SBI Pay. These apps enable customers to enjoy banking services
anytime and anywhere through their smartphones. Apart from these phone apps, customers
can also make use of SBI SMS Banking.
With the help of mobile banking, a variety of financial tasks have been simplified. Be it
getting a simple account statement to keep their budget in check or to complete complex
tasks like investing in mutual funds, everything can be done in a few clicks. SBI YONO does
the exact same job – bringing banking at your fingertips.
SBI mobile banking apps – SBI YONO & BHIM SBI pay
SBI puts forth two mobile applications for its customers, viz. SBI YONO and BHIM SBI
PAY. Where YONO is a holistic app bringing all types of banking services at the user’s
fingertips, BHIM SBI PAY offers easy UPI-based transaction option. Let’s know about these
apps in details.
1.SBI YONO App
This app can be accessed using your debit card details or internet banking login details. After
creating an account on it, you can create an mPIN for quick login. Follow the steps stated
further to register yourself on SBI YONO:

Registration Process for SBI YONO

Step 1: Install SBI Yono from Google Play Store or App Store
Step 2: Open the app and click “Yes”, if you have internet banking activated
Step 3: On clicking “Yes”, you will be redirected to the login page. Enter your Internet
Banking User ID and Password to access the Yono App
Step 4: If you don’t have Internet Banking login details, Click “No”
Step 5: Click on “Register for YONO with my ATM Card”
Step 6: Enter your CIG Number & Account Number in the fields provided. (These are
mentioned in your passbook.)
Step 7: Enter the OTP sent to your registered mobile number and submit
Step 8: Now, to generate a username& password, enter your ATM card number and ATM PIN
Step 9: Create your password
2. BHIM SBI pay app
State Bank of India has collaborated with the BHIM UPI by NPCI to offers its customers
with the UPI-based payment services.
Dose and don’t of SBI mobile banking
Below mentioned are the Dos and Don’ts related to SBI Mobile Banking which should be
followed by all existing customers.
Dos:
 Always make sure that your mobile phone is protected with a unique password or
pattern
 It is crucial to select a strong password containing a mixture of alphanumeric as well
as special characters
 It is important to change your password quite frequently
 If by chance your phone gets stolen or misplaced, immediately report the case to the
bank. Block your mobile banking service and file an FIR with the nearest police
station
Don’ts:
 Make sure that you do not share your password information on any website apart
from the bank’s registered app
 Do not use a public Wi-Fi connection to use SBI Yono or BHIM SBI PAY
 Never keep any confidential banking information stored in messages or files in your
mobile phone
 If you change your mobile number, make sure to inform SBI about it
SBI SMS Banking
SBI accountholders can withdraw cash from ATM without using SBI ATM cards. They can
do so directly by placing a request through the cardless cash withdrawal facility through
mobile banking. This process gets completed in two steps – first, by placing a request in the
SBI YONO app and second, by completing the cash withdrawal by visiting the ATM.

Follow the below-mentioned steps for cardless cash withdrawal through YONO app:

Step 1: Login to the YONO app using your internet banking user ID and password or MPIN
Step 2: Now, select YONO cash option from the Home page or from YONO Pay in Home
screen or from YONO Pay option on Hamburger Menu
Step 3: On the landing page of YONO Cash, under “New Request” tab, tap on the ATM
option under YONO Cash
Step 4: Select the account from which the amount needs to be debited and enter the amount
to be withdrawn and click on Next
Step 5: Now, you need to create your YONO Cash PIN for the specific transaction and tap on
Next. The PIN will only be displayed on the screen at the time of creation and will not be
allowed to share
Step 6: Review the transaction details, accept the Terms and Condition and click on Confirm
Step 7: A message will be displayed after successful completion of the transaction
Step 8: Your request is now registered on YONO and Transaction Reference Number will be
sent to your registered mobile number via SMS

Follow the below-mentioned steps at the time of withdrawing cash from the ATM:

Step 1: Click on YONO Cash at the YONO Cash enabled ATM

Step 2: Now, enter the Transaction Reference Number received through SMS
Step 3: Enter the amount that needs to be withdrawn. The amount should be the same as
initiated in YONO Cash request
Step 4: Enter the YONO Cash PIN that was created while initiating YONO Cash request
Step 5: Once the transaction is validated and authenticated, the cash will be dispensed from
the ATM
Net Banking
Net banking is a revolutionary step for the banking industry. Any tasks like passbook
printing, cash withdrawal, Demand draft preparation, cheque-book applications, etc. can be
performed easily through SBI net banking. Nowadays, net banking is secured with your
debit card credentials and OTP (One Time Password) to protect the account holder’s money.
In this article, we will find out how to activate net banking for SBI savings account to
perform several tasks online.
What are the Services Available using SBI Netbanking
To keep up with the time and to ensure that customers continue to receive quality services,
SBI launched its internet banking facility. Customers having an SBI savings account can
make financial transactions easily at the comfort of their home or offices provided they need
to apply for SBI net banking facility.
How to Activate SBI Net Banking
Once you open a bank account with SBI, you can proceed for self-registration of net banking
facility in case of single account holders with SBI ATM Card. In case of joint accounts, you
will have to contact your bank to complete the formalities.

1. Go to the SBI net banking portal.

2. Click on the “New User Registration/Activation” link.
Please note if you have already obtained Pre-printed Kit from the branch for activating INB
facility, you should not proceed with this link. You can input the user id and password given
in PPK on the normal login screen.
3. For new registration, select “New User Registration” from the drop-down menu
and click “Next”
4. You will now be taken to a user-driven registration form as shown on the screen.
5. Enter your details such as the account number as mentioned in your passbook,
CIF number, branch code, country, registered mobile number, etc.
6. Select the Internet Banking facility you require: Full or Limited Transaction
Rights/View Rights.
7. Enter the captcha code and click Submit.
8. Now enter the OTP received in your mobile number and click Confirm.
If you have an ATM card, you can complete the registration and activate Internet Banking
services for your account.
9. Select the ATM Card option and click Submit
Note: If you do not have an ATM card, Internet Banking services will be activated by the
branch.
 10. Now you will be redirected to Debit Card Validation page and requested to
validate the ATM credentials. Enter the ATM card details and click proceed.
11. You are requested to generate a permanent username.
12. Create a login password having a special character. The password must have
upper and lower case alphabets, one number, and one special character.
13. Re-enter the password to confirm and click Submit.
14. The registration is successful and you can now login to Internet Banking services
with the permanent username and password.

How to Reset SBI Net Banking Password

An account holder can reset SBI net banking password as many times as he wants to. It is a
free service and the bank charges no fee for this service. One can reset his SBI net banking
password by following the steps mentioned below:

Step 1: Visit the netbanking portal to log in to the account.

Step 2: Click on the “Continue to Login” option.
Step 3: Click on the “Forgot net banking login password” for SBI account.
Step 4: Select the “Forgot my login password” and click on “Next”
Step 5: Fill in the required details like username, bank account number, date of birth, mobile
number, country, and captcha code to proceed further.
Step 6: After submission, the user will receive an OTP (One Time Password) on the
registered mobile number. Enter the OTP to proceed further.
Step 7: In the new drop-down menu, select “Using Profile Password” option to change the
SBI online net banking password. Alternatively, account holders can change their SBI net
banking password by using ATM card details or by visiting the SBI branch.
Step 8: Enter the SBI net banking profile password to proceed further.
Step 9: Now enter the new password and submit the request.
Step 10: SBI net banking password reset process has been completed and the account holder
will now be able to login to SBI net banking using the new password.

How to Reset SBI Netbanking Profile Password

A profile password provides an additional layer of security to your account. While accessing
your profile in net banking, you need to authenticate yourself before performing anything in
net banking via profile password for example, when you set your mobile number, adding a
third party, defining limits for DD and third party transactions, and even when you change
login password. With login password you can access internet banking facility, whereas the
profile password is used to make changes or access details of the net-banking profile.

In case the user forgets the profile password, listed below are the ways one can reset the SBI
Netbanking Profile Password:

Step 1: Visit the personal SBI Online Net Banking portal.

Step 2: Click on “Profile” and enter “Forgot Profile Password” option.
Step 3: In the drop-down menu, select the “Hint Question” set at the time of profile creation.
Step 4: Enter the answer to the hint question.
Step 5: Click ‘Submit’ and proceed further.
Step 6: Now enter the new profile password and re-enter the same to confirm it.
Step 7: Click ‘Submit’ and use the registered new profile password to carry out transactions.
How to Transfer Funds through SBI Net Banking
Accountholders can transfer funds from one bank account to another online in seconds
through SBI net banking. One can do so through any of the following methods:

 NEFT
 RTGS
 IMPS
One can carry out fund transfers online from the SBI account to various other accounts.
SBI Quick Transfer (without adding Beneficiary)
 SBI Quick Transfer service allows a user to transfer funds to an account in India
without adding a beneficiary
 The account holder is required to provide the beneficiary account details and select
whether the transfer has to be done through NEFT or IMPS
 One can transfer funds up to a maximum of Rs. 25,000 per day
Fund Transfer through SBI Net Banking to Other Bank Accounts
It is possible to transfer funds from SBI account to other bank accounts. One has to follow
the steps mentioned below to transfer funds to any bank account other than SBI without any
hassles:
 Log in to the net banking account
 In the “Payment/Transfer” section, select the “Other Bank Account” option
 Select your account and fill in the amount that has to be transferred
 Select the beneficiary from the list mentioned and click on the submit button
 The amount will be transferred to the beneficiary’s account on successful submission
It is worth noting that the beneficiary details should be added beforehand otherwise the
accountholder will not be able to make the transaction immediately.
SBI Credit Card Bill Payment using SBI Net Banking
SBI account holders can pay their SBI Card dues using the SBI netbanking facility. However,
this facility is available only for Visa credit cards.

Customer care
State Bank of India (SBI) is the largest bank of the country. It offers a number of banking
products and services such as savings accounts, fixed deposits, loans, credit cards, etc. An
account holder can contact the SBI customer care toll-free number in case he encounters an
issue or to get any information.
State Bank of India ( SBI ) customer care : 24×7 toll free number
An account holder can call on the 24×7 toll-free SBI customer care number for any kind of
questions, queries, feedback or complaint. The bank has 2 toll-free numbers for customer
support:
1800 1234
1800 2100
1800 425 3800
1800 11 2211
The bank has also provided a toll-number for its customers:
080-26599990
This number is accessible from international locations as well.

IFSC code
SBI Indian Financial System Code (IFSC) is an 11 digit alphanumeric code which is used to
identify the bank branches and facilitate NEFT or RTGS transactions SBIN0050240 is the
IFSC code of Sector 22 chandigarh branch

Bank product and service

SBI business loan
SBI car loan
SBI credit card
SBI education loan
SBI gold loan
SBI home loan -interest rate @ 8. 40%
SBI loan against property
SBI Bank personal loan
SBI service account - interest rate 2024, types, KYC documents required

1.5 advantages of SBI Bank

State Bank of India (SBI) offers several advantages:
1. Wide Network: SBI has an extensive network of branches and ATMs across the
country, making banking convenient for customers.
2. Diverse Products and Services: SBI provides a wide range of banking products and
services including savings accounts, loans, credit cards, insurance, investment
options, and more, catering to various financial needs.
3. Technology Integration: SBI has embraced technology, offering online and mobile
banking services, making transactions and account management easier for customers.
4. Government Backing: As a government-owned bank, SBI offers a sense of security
and stability to customers.
5. Competitive Rates: SBI often offers competitive interest rates on deposits and loans,
attracting customers looking for favorable financial terms.
6. Customer Service: SBI focuses on providing efficient and reliable customer service
to address queries and concern mptly.
7. Financial Inclusion: SBI actively participates in various financial inclusion
initiatives, reaching out to underserved segments of the population and offering
banking services to them.
Overall, SBI’s wide reach, diverse offerings, technological advancements, and customer-
centric approach make it a preferred choice for many individuals and businesses in India.
 1.6 disadvantages of SBI Bank

While State Bank of India (SBI) has numerous advantages, it also has some disadvantages:

1. Bureaucracy: Being a large government-owned bank, SBI may sometimes suffer

from bureaucratic inefficiencies, leading to slower decision-ma’↓ processes and
longer wait times for certain services.
2. High Fees and Charges: SBI may have relatively higher fees and charges compared
to some private banks, especially for services like ATM withdrawals beyond a certain
limit, account maintenance fees, and transaction charges.
3. Limited Innovation: Due to its size and traditional structure, SBI may be slower to
adopt innovative banking technologies and services compared to some private banks
or fintech companies.
4. Customer Complaints: Some customers have reported dissatisfaction with SBI’s
customer service, citing issues with responsiveness, resolution of complaints, and
overall service quality.
5. Overcrowded Branches: SBI branches, especially in urban areas, can be
overcrowded, leading to longer waiting times and inconvenience for customers.
6. Complex Processes: SBI’s processes and documentation requirements for certain
services, such as loan approvals or account openings, may be perceived as mplex or
cumbersome by some customers.

1.7 COMPANY ANY PROFILE

SBI Mission, Vision & Values

VISION
 Transforming India by choice of banks.
 My SBI
 First in customer satisfaction

MISSION
  For facilitating simple, Responsive and to provide Innovative financial solutions.
 To achieve the customer goals by offering different products and services.
 For excellent drive we consume the art technology of state.
 Offering of better services to abroad Indian customers.
 Servicing for country’s remoting parts of areas.

VALUES
 More ethical, transparent and honest in the services.
 Respect to our customers and other fellow associates.
 Driven of Knowledge.
 Politeness
 Sustainability

1.8 SWOT ANALYSIS OF STATE BANK OF INDIA STRENGTHS:

 Better domestic position

 It has the very large network in India
 Very strongCapital position
 It has the better goodwill in the market
 Itself it has the separate act. And special previlage
 Strong economic growth would generate higher demand for funds
 It provides a wide variety of services to their customers includes, investment
banking, Online banking, stoke broking and rural banking
 It has the strong brand name among customers
 Strong backing from the government

WEAKNESS:

 Lack of modernization
 It has the high margin of non-performing assets, repayment of loan issues
 Compared to other private banks and foreign banks the customer waiting period is
Long
 Loss of market shares, because of delay in technology up-gradation
 Bad debts is the main problem of unable to resolve bad debts and non-repayment of
Loans
OPPORTUNITIES:

 Global expansion in that especially in rural areas

 Reduce transaction cost by merging with associated banks
 Restructuring with the challenges of the new financial environment
 Growth of per capita income and indicates a growing economy
 Borrowing capacity of the customer is increasing
 Through the help of technologies that is mobiles, internet, computers the services of
Online banking is increasing

 Banks become more relevant with demonetisation and digitization, it increase the no.
Of banks accounts and credit card usage

THREATS:

 Threats of cyber will effect on bank image and information theft & security
 Reduce in market shares of SBI, If the consolidation among private banks
 Effect on operation when giving licenses by SBI for new banks
 Foreign banks that have advanced product in their business

CHAPTER – 2
 RESEARCH METHODOLOGY
2.1 Objective of the project
2.2 Need of the study
2.3 Scope of the study
2.4 Methodology
2.4.1 Data Collection
2.4.2 Sampling Technique
2.4.3 Methods of Data Analysis
2.5 Limitations of the study
2.1 Objective of the study
1. To study the concept of loans and Advances SBI bank.
2. To determine the extent of loans and Advances granted.
3. To examine the bank execution in the matter of credit.
4. To analyse the loan and Advances recovered.
5. To study the rules governing the process of granting a Loan.

2.2 Need of the study

This project is mainly to know about banks granting loans and advances to the
people.
Country is facing the problems of liberalization, privatization and globalization.
In Order to overcome these problems study of loans and advances is very
crucial.
 To comprehend the difficulties and openings in the business.
 To know the prospective areas of investment for the banks in the near
future.
 To know the various financial requirements of the individual and
corporate Borrowers.
 To know the credit facilities bank can provide to assist business needs.
 To study the progress and trends since more and more competitors have
Entered the market with many features in their services.
2.3 Scope of the study
1. Consumer perception towards Advance Product.
2. Consumer awareness about Advance Product scheme and its benefit.
3. Aware the Bank about the customer problems faces by the advances products.

2.4 Methodology

Research methodology is a methodology for collecting all sorts of information & data
pertaining To the subject in question. The objective is to examine all the issues involved &
conduct Situational analysis. The methodology includes the overall research design, sampling
procedure & field or done & finally the analysis procedure. The methodology used in the
study Consistent of sample survey using both primary & secondary data. The primary data
has been Collected with the help of questionnaire as well as personal observation book,
magazine; journals Have been referred for secondary data. The questionnaire has been
drafted & presented by the Researcher himself.

2.4.1 Data collection

Information mainly gathered from both primary and secondary sources.
 Primary Data: It is a unique information source are gathered the
directly by the Specialists for explicit reason or venture.
 Primary information was gathered by the bank authorities.
 Secondary Data: It is gathered from the other than primary source, who
already Gathered the information i.e. yearly reports, cost sheet etc.
 Secondary data was gathered from published materials, books, websites,
balance Sheets and records.

2.4.2 Sampling Technique

For studying loans and advances in State Bank of India (SBI), the sampling technique can
vary based on research objectives and population characteristics. Here are some common
sampling techniques:
 Random sampling
 Stratified sampling
 Cluster sampling
 Convenience sampling
 Systematic sampling
 Purposive sampling
 Quota sampling
By choosing an appropriate sampling technique, researchers can effectively select samples
from SBI’s customer base or loan portfolio, ensuring the reliability and validity of the study
findings.

2.4.3 Methods of Data Analysis

For analyzing data on loans and advances in State Bank of India (SBI), various methods can
be employed depending on the nature of the data and research objectives. Here are some
common methods of data analysis:

 Descriptive statistics
  Inferential statistics
 Trade analysis
 Segmentation analysis
 credit risk assegnment
 Qualitative analysis
 Comparative analysis
 Data visualisation
 Machine learning and predictive analytics
By employing these methods of data analysis, researchers can gain valuable insights into
SBI’s loan portfolio, customer behavior, credit risk profile, and market trends, enabling
informed decision-making, risk management, and strategic planning within the organization.

2.5 Limitations of the study

 The investigation depends on the information of past 5 years only.

 The information for concentrate for the most part dependent on solitary bank.
 As lion’s share of the clients are employees of the bank, they may be biased in
Giving the data.
 The timespan of the research was limited.
 Chapter – 3
Review of Literature

3.1 review of literature

Evaluation of SBI
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 2 June 1806. Three years later,
the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A
unique institution, it was the first joint-stock bank of British India sponsored by the
Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1
July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern
banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.
ViPrimarily Anglo-Indian creations, the three presidency banks came into existence either as
a result of the compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an arbitrary manner to modernize India’s
economy. Their evolution was, however, shaped by ideas culled from similar developments
in Europe and England, and was influenced by changes occurring in the structure of both the
local trading environment and those in the relations of the Indian economy to the economy of
Europe and the global economic framework.

Establishment
The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock
banking in India. So was the associated innovation in banking, viz. the decision to allow the
Bank of Bengal to issue notes, which would be accepted for payment of public revenues
within a restricted geographical area. This right of note issue was very valuable not only for
the Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an
accretion to the capital of the banks, a capital on which the proprietors did not have to pay
any interest. The concept of deposit banking was also an innovation because the practice of
accepting money for safekeeping (and in some cases, even investment on behalf of the
clients) by the indigenous bankers had not spread as a general habit in most parts of India.
But, for a long time, and especially up to the time that the three presidency banks had a right
of note issue, bank notes and government balances made up the bulk of the investible
resources of the banks.
The three banks were governed by royal charters, which were revised from time to time.
Each charter provided for a share capital, four-fifth of which were privately subscribed and
the rest owned by the provincial government. The members of the board of directors, which
managed the affairs of each bank, were mostly proprietary directors representing the large
European managing agency houses in India. The rest were government nominees, invariably
civil servants, one of whom was elected as the president of the board,

Business
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 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 favor 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.
Major change in the conditionsA major change in the conditions of operation of the Banks of
Bengal, Bombay and Madras occurred after 1860. 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 from 1 March 1862 the sole power of issuing paper currency
within British India. The task of management and circulation of the new currency notes was
conferred on the presidency banks and the Government undertook to transfer the Treasury
balances to the banks at places where the banks .
Would open branches. None of the three banks had until then any branches (except the sole
attempt and that took a short-lived one by the Bank of Bengal at Mirzapore in 1839) although
the charters had given them such authority. But as soon as the three presidency bands were
assured of the free use of government Treasury balances at places where they would open
branches, they embarked on branch expansion at a rapid pace. By 1876, the branches,
agencies and sub agencies of the three presidency banks covered most of the major parts and
many of the inland trade centers in India. While 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.Presidency Banks ActThe presidency Banks Act, which came into
operation on 1 May 1876, brought the three presidency banks under a common statute with
similar restrictions on business. The proprietary connection of the Government was, however,
terminated, though the banks continued to hold charge of the public debt offices in the three
presidency towns, and the custody of a part of the government balances. The Act also
stipulated the creation of Reserve Treasuries at Calcutta, Bombay and Madras into which
sums above the specified minimum balances promised to the presidency banks at only their
head offices were to be lodged. The Government could lend to the presidency banks from
such Reserve Treasuries but the latter could look upon them more as afavor than as a right.
The decision of the Government to keep the surplus balances in Reserve Treasuries outside
the normal control of the presidency banks and the connected decision not to guarantee
minimum government balances at new places where branches were to be opened effectively
checked the growth of new branches after 1876. The pace of expansion witnessed in the
previous decade fell sharply although, in the case of the Bank of Madras, it continued on a
modest scale as the profits of that bank were mainly derived from trade dispersed among a
number of port towns and inland centers of the presidency.
India witnessed rapid commercialization in the last quarter of the nineteenth century as its
railway network expanded to cover all the major regions of the country. New irrigation
networks in Madras, Punjab and Sind accelerated the process of conversion of subsistence
crops into cash crops, a portion of which found its way into the foreign markets. Tea and
coffee plantations transformed large areas of the eastern Terais, the hills of Assam and the
Nilgiris into regions of estate agriculture par excellence. All these resulted in the expansion
of India’s international trade more than six-fold. The three presidency banks were both
beneficiaries and promoters of this commercialization process as they became involved in the
financing of practically every trading, manufacturing and mining activity in the sub-
continent. While the Banks of Bengal and Bombay were engaged in the financing of large
modern manufacturing industries, the Bank of Madras went into the financing of large
modern manufacturing industries, the Bank of Madras went into the financing of small-scale
industries in a way which had no parallel elsewhere. But the three banks were rigorously
excluded from any business involving foreign exchange. Not only was such business
considered risky for these banks, which held government deposits, it was also 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 in 1935.
Presidency Banks of Bengal
The presidency Banks of Bengal, Bombay and Madras with their 70 branches were merged in
1921 to form the Imperial Bank of India. The triad had been transformed into a monolith and
a giant among Indian commercial banks had emerged. The new bank took on the triple role
of a commercial bank, a banker’s bank and a banker to the government.
But this creation was preceded by years of deliberations on the need for a ‘State Bank of
India’. What eventually emerged was a ‘half-way house’ combining the functions of a
commercial bank and a quasi-central bank.
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 latter ceased to be bankers to
the Government of India and instead became agent of the Reserve Bank for the transaction of
government business at centre’s at which the central bank was not established. But it
continued to maintain currency chests and small coin depots and operate the remittance
facilities scheme for other banks and the public on terms stipulated by the Reserve Bank. It
also acted as a bankers’ bank by holding their surplus cash and granting them advances
against authorized securities. The management of the bank clearing houses also continued
with it at many places where the Reserve Bank did not have offices. The bank was also the
biggest tendered at the Treasury bill auctions conducted by the Reserve Bank on behalf of the
Government.
The establishment of the Reserve Bank simultaneously saw Important amendments being
made to the constitution of the Imperial Bank converting it into a purely commercial bank.
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.
Imperial Bank
The Imperial Bank during the three and a half decades of its existence recorded an
impressive growth in terms of offices, reserves, deposits, investments and advances, the
increases in some cases amounting to more than six-fold. The financial status and security
inherited from its forerunners no doubt provided a firm and durable platform. But the lofty
traditions of banking which the Imperial Bank consistently maintained and the high standard
of integrity it observed in its operations inspired confidence in its depositors that no other
bank in India could perhaps then equal. All these enabled the Imperial Bank to acquire a pre-
eminent position in the Indian banking industry and also secure a vital place in the country’s
economic life.
When India attained freedom, the Imperial Bank had a capital base (including reserves) of
Rs.11.85 crores, deposits and advances of Rs.275.14 crores and Rs.72.94 crores respectively
and a network of 172 branches and more than 200 sub offices extending all over the country.
First Five Year Plan
In 1951, when the First Five Year Plan was launched, the development of rural India was
given the highest priority. The commercial banks of the country including the Imperial Bank
of India had till then confined their operations to the urban sector and were not equipped to
respond to the emergent needs of economic regeneration of the rural areas. In order,
therefore, to serve the economy in general and the rural sector in particular, the All India
Rural Credit Survey Committee recommended the creation of a state-partnered and state-
sponsored bank by taking over the Imperial Bank of India, and integrating with it, the former
state-owned or state-associate banks. An act was accordingly passed in Parliament in May
1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the
resources of the Indian banking system thus passed under the direct control of the State.
Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State
Bank of India to take over eight former State-associated banks as its subsidiaries (later named
Associates).
The State Bank of India was thus born with a new sense of social purpose aided by the 480
offices comprising branches, sub offices and three Local Head Offices inherited from the
Imperial Bank. The concept of banking as mere repositories of the community’s savings and
lenders to creditworthy parties was soon to give way to the concept of purposeful banking
subserving the growing and diversified financial needs of planned economic development.
The State Bank of India was destined to act as the pacesetter in this respect and lead the
Indian banking system into the exciting field of national development.
 Board of Directors
List of directors on the central board of
State Bank of India

Name Designation Used section of SBI

Act 1955

Shri Dinesh Kumar Chairman 19 (a)

khara
Shri C.s. setty Managing Director 19 (b)
Shri Ashwin Managing Director 19 (b)
Kumar Tewari
Shri Aalok Kumar Managing Director 19 (b)
Tewari
Shri VinayM Tone Managing Director 19 ( b)
CA ketan S Directors 19 ( c )
Vikamsey
Shri mrungank M Directors 19 (c)
Paranjape
Shri Rajesh Kumar Directors 19 ( c )
Dubey
CA Dharmendra Directors 19 ( c )
Singh Shekhawat

CA Parfulla P Directors 19 (d)

Chhajed
Smt. Swati Gupta Directors 19 (d)
Dr . Vivek Joshi Directors 19 (e )
Shri Ajay Kumar Directors 19 ( f )
 Chapter – 4
Data Analysis , Interpretation
Presentation

4.1 Data interpretation

4.2 Findings
 Data Analysis & Diagram Interpretation:

Age
4.2 Findings
 From this project it is found that SBI advance product having the 1st place in the
Market at Bangalore, there is a great opportunity to compete with ICICI Bank & to
Retain its customer by fulfilling the requirement of customer in SBI advance product.
 In this project it is found that the sanctioning of loans and advances are increased By
the bank every year. And it is providing these loans andadvances at a low Interest
rates.
 From this project the deposits of the state bank of India is increasing by every Year.
 It’s been located that about 80% correspondents are using advance manufactured
from SBI and 20% aren’t using any sort of increase made from SBI in Bangalore.
 All of SBI customers are glad with the services supplied by using the financial
Institution.
 Many of these clients satisfied with the low hobby price and longer repayment length
Of the advance product.
 Most of the clients at Bangalore favour to take mortgage from SBI.
 Approximately 25% of increase product users stated that the service of SBI in
Advance product is exceptional.
 A reaction from customer care is so clean & appropriate.
 Many customers have no time to call customer care in order that they’re no longer
Able to understand about the service & functions of SBI develop product.
 Most clients are shifted from different bank’s boost product to SBI because of hidden
Costs, high hobby rate, less reimbursement duration.
 Government employees are extra situation than personal personnel for enhance
Product.
 In 2017-18 the SBI is facing the net loss of Rs.6547 crores.
 The equity shareholders not gettingbetter returns on their capital in the year 2018.
 Chapter – 5
Conclusion & Suggestions

5.1 Conclusion
5.2 Suggestions
5.3 Bibliography & Reference
5.1Conclusion

From the analysis component it is able to be finish that the clients have an amazing reply
toward SBI increase merchandise. SBI is in 1st function having massive wide variety of
customers and offering right offerings to them. The bank has a wide client base, so the
financial institution have to concentrate on this to preserve those customers.
In gift situation SBI is the largest advance product issuer in India. Within a totally short
period of time the fulfillment made by using SBI is super, what a everyday financial
institution can’t expect, but it’s miles being carried out through SBI. It occurs due to
employee determination closer to the organization, quickest growing Indian economy and
brand photograph.
The present research work dealt with the performance of the SBI with reference to Ratio
analysis and percentage analysis. There is a sufficient progress and good performance up to
the 2016-17 and later the 2017-18 bank is in loss. The performance of the SBI has been
analysed in detail in terms of deposit mobilisation, loans and advances, invest position,
earning and profitability efficiency.
In the economic year 2017-18 the SBI attributed the net loss to decrease trading income and
sizeable marketplace to marketplace losses due to hardening of bond yields and better
provision because of wage revision and enhancement inside the gratuity ceiling.
We also came to know about the total process of disbursing a commercial loan and all its
related aspects and the various types of loans available under the roof of SBI. However the
bank is seen to be taking lot of initiative in attracting customers, helping them financially and
provide expert support as and when required to its nearby business units to either setup or
expand its operations.
5.2 Suggestions

 Purchaser recognition software is needed in order that more people must

attract toward strengthen product.
 If there are any kind of hidden prices than that must disclose to consumer
earlier than giving loan to them.
 SBI ought to take feedbacks of clients regarding capabilities & services.
 SBI need to take some steps so that customers can get their loan in time. Like
cellphone verification with the aid of client care that one customer is were
given their mortgage on time or not. It ought to be earlier than a sure date so
vital steps can be taken.
 SBI need to greater problem about physical verification as opposed to
cellphone verification so it’ll keep away from fraud or cheating.
 SBI client care should extra subject about the quickest settlement of client
troubles.
 Before deducting or charging any financial rate SBI have to discuss with
customer.
 The bank must growth the period for repayment of mortgage.
 SBI need to awareness on Segmentation based on customer know-how
Product imparting primarily based on customer demand.
 Boost product promoting retailers should now not give any kind of wrong
information regarding increase product.
 It is the duty of the bank to disclose all the cloth information regarding
develop product, like interest charged, compensation duration, different forms
of prices, etc.
5.3 Biography & Refrence

1. Andrew Campbell (2007), “Bank insolvency and the problem of non-performing

loans”, Journal of Banking Regulation, 25-45.
2. KC Shekhar and LekshmyShekhar (2007), ‘Banking Theory and Practice’,
Nineteenth edition, reprint 2007, vikas publishing house Pvt. Ltd.(India),
Chapter:16, PP.365-374.
3. Geeta Sharma and Ganesh Kawadia (2006), “efficiency of Urban Co-operative
Banks of Maharashtra: A DEA Analysis”, The ICFAI Journal of Management, VolǤ
5, Issue 4Ǥ
4. Harish Kumar Singla (2008), “Financial Performance of Banks in India”, the
ICFAI Journal of Management, Vol.7, Issue 1.
5. Chandra, Buddhadeb (2006), “Performance of Budwan Central Co-operative Bank
in the Development of the District(1988-1989 to 1989-99)”, Finance India,
September, 2006Ǥ
 6. DuttaUttam and BasakAmit (2008), “Appraisal of Financial Performance of
Urban Co-operative Banks – A Case studyǤ” The Management Accountant, case
study, March 2008, 170-174.
7. Chakravarti S “Role of District Central Cooperative Banks on Distribution of
Agricultural Loans” Indian Cooperative Review, New Delhi volǤXXX NoǤ1 Jme
1976 ppǤ449Ǥ
8. Kamat GǤ S (1984) “The District of Loans and Advances a view in Perspective”
Indian Cooperative Review New Delhi Vol. II No. 8 Aug.(1984) pp.3-6.
9. Economic survey 2014-2015.
10. Kothari C.R. Business Research Methods, Vikas Publications, New Delhi,
2010.p.245.
11. Dr. Mamoria, C.B. Rural Credit and Agricultural co-operation in India
(Allahabad: KitabMahal, 1983), Sec.II pp.4-5.
12. Annual Reports of Hyderabad District Co-operative Central Bank, Hyderabad.
13. Annual reports of SBI in India.