EXECUTIVE SUMMARY

In the growing global competition, the productivity of any business concern depends upon
the behavioral aspect of consumers. This topic deals with the customers perception towards
Loan Product from SBI at Vinchur.
This project report contains 10 different chapters.
The second chapter is the introduction to the company profile & Title.
The fifth chapter, research methodology. It covers the sample procedure, types of data used
and the data collection method.

The Six chapter comprehensive coverage of forecasting concepts and techniques which
shows the analysis of data through tabulation, time series, computation and graphical
representation of data collected from survey.

The Seventh chapter deals with the findings, suggestion & conclusion part which is very
much important after analysis is made.

As we know that only analysis and conclusion is not the end of a research, so in the ten
chapter the recommendation part is covered which are made after a depth study of the
analysis part of thesis.

Page | 1

STATE BANK OF INDIA (SBI)

The evolution of State Bank of India can be traced back to the first decade of the 19th
century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806.
The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was
the first ever joint-stock bank of the British India, established under the sponsorship of the
Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840)
and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These
three banks dominated the modern banking scenario in India until when they were
amalgamated to form the Imperial Bank of India on 27TH January1921.
An important turning point in the history of State Bank of India is the launch of the first Five
Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in
general and the rural sector of the country, in particular. Until the Plan, the commercial banks
of the country, including the Imperial Bank of India, confined their services to the urban
sector. Moreover, they were not equipped to respond to the growing needs of the economic
revival taking shape in the rural areas of the country. Therefore, in order to serve the
economy as a whole and rural sector in particular, the All India Rural Credit Survey
Committee recommended the formation of a state-partnered and state-sponsored bank. The
All India Rural Credit Survey Committee proposed the takeover of the Imperial Bank of
India, and integrating with it, the former state-owned or state-associate banks. Subsequently,
an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India
(SBI) was established on 1 July 1955. This resulted in making the State Bank of India more
powerful, because as much as a quarter of the resources of the Indian banking system were
controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was
passed in 1959. The Act enabled the State Bank of India to make the eight former Stateassociated banks.
The State Bank of India emerged as a pacesetter, with its operations carried out by the 480
offices comprising branches, sub offices and three Local Head Offices, inherited from the
Imperial Bank. Instead of serving as mere repositories of the community's savings and
lending to creditworthy parties, the State Bank of India catered to the needs of the customers,
by banking purposefully. The bank served the heterogeneous financial needs of the planned
economic development.

Page | 2

BANK OF BENGAL H.O.

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 upto 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.
Group Photograph of Central Board (1921)

Business

Page | 3

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 woollens, 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.
(Old Bank of Bengal)
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 conditions

A 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 till then any branches
(except the sole attempt and that too 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
Page | 4

1876, the branches, agencies and sub agencies of the three presidency banks covered most of
the major parts and many of the inland trade centres 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.
Bank of Madras Note Dated 1861 for Rs.1

Presidency Banks Act

The 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 a favour than as a right

BANK OF MADRAS

Page | 5

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 centres of the presidency.
India witnessed rapid commercialisation 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 commercialisation process as they became involved in the
financing of practically every trading, manufacturing and mining activity in the subcontinent. 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.

Bank of Bombay

Presidency Banks of Bengal

Page | 6

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 centres 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 authorised 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 tenderer 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

Stamp of Imperial Bank of India

Page | 7

The Imperial Bank

a
half
its

during the three and

decades of

existence
recorded an
impressive growth in
terms of offices, reserves,
deposits, investments and advances, the increases in some cases amounting to more than sixfold. 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 statesponsored 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).

Page | 8

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 DIRECTOR

From the Desk of

The Chairman
Dear Stakeholders,
It is my privilege to present this preface to your Banks Annual Report for the Financial Year
2013-14. As detailed in the report, your Bank continues to tread the path of sustained growth
and maintain its flagship position in the banking space in India. We are confident that with
the support of all our stakeholders your Bank will continue to prosper and achieve greater
Page | 9

heights in the times to comeOutlook for global growth for 2014 looks relatively better than
the previous year, with reduced tail risks. On the domestic front, although growth contracted
to around 5% in FY14, India continues to remain one of the fastest growing economies in the
world. Outlook for the current fiscal with inflation now well within tolerance level, appears
better than the previous year. Additionally, softening of global commodity prices should help
reduce the imported inflation in domestic economy. Trends in industrial growth are
encouraging. With exports turning positive,coupled with higher capital inflows, managing the
current account deficit may be facilitated in the current year.Against the above backdrop of a
challenging macro-economic environment, the domestic banking system continued to enjoy
the confidence of the banking public. This is reflected in the aggregate deposits of all
scheduled commercial banks (ASCB) growing higher by 14.3% in FY14 against 13.5%
growth in FY12. However, there was sharp deceleration in credit growth to 14.1% in FY 13
from 17.0% in FY13 due to a slow-down in investment demand and overall muted growth.
Liquidity position was, however, normal as RBI provided refinance for exports. Since there
was little headDue to the downturn, many sectors were severely affected impacting the
quality of assets financed by the banks.Gross NPAs of 40 listed banks went up by 43.1%
from levels a year ago. Further the restructured assets book also showed an upward bias with
recast assets under CDR around 50% more than the whole of last year

Page | 10

BOARD OF DIRECTORS

List of Directors on the Central Board of State Bank of India as on

06.08.2015
Sl.No Name

Designation

Under
Section
of SBI
Act
1955

1.

Smt. Arundhati Bhattacharya Chairman

19(a)

2.

Shri P. Pradeep Kumar

Managing Director

19 (b)

3.

Shri B. Sriram

Managing Director

19 (b)

4.

Shri.V.G.Kannan

Managing Director

19 (b)

5.

ShriRajnish Kumar

Managing Director

19 (b)

6.

ShriSanjivMalhotra

Director

19 (c)

7.

Shri Sunil Mehta

Director

19 (c)

8.

Shri M.D. Mallya

Director

19 (c)

9.

Shri Deepak I. Amin

Director

19 (c)

10.

Shri S.K. Mukherjee

Officer Employee 19 (cb)

Director

11.

ShriHarichandraBahadur Singh

Director

19(d)

12.

ShriTribhuwanNathChaturvedi

Director

19 (d)

13.

Dr.HasmukhAdhia

Director

19 (e)

14.

Dr. Urjit R. Patel

Director

19 (f)

Branches
Page | 11

The corporate centre of SBI is located in Mumbai. In order to cater to different functions, there are
several other establishments in and outside Mumbai, apart from the corporate centre. The bank boasts
of having as many as 14 local head offices and 57 Zone Offices, located at major cities throughout
India. It is recorded that SBI has about 10000 branches wellnetworkedtocater toitscustomers
throughout India.
ATM Services
SBI provides easy access to money to its customers through more than 8500 ATMs in India. The Bank
also facilitates the free transaction of money at the ATMs of State Bank Group, which includes the
ATMs of State Bank of India as well as the Associate Banks State Bank of Bikaner & Jaipur, State
Bank of Hyderabad, State Bank of Indore, etc. You may also transact money through SBI Commercial
and International Bank Ltd by using theStateBankATM-cum-Debit (Cash Plus) card.
Subsidiaries
The State Bank Group includes a network of eight banking subsidiaries and several non-banking
subsidiaries. Through the establishments, it offers various services including merchant banking
services,
fund
management,
factoringservices,primary
dealership
governmentsecurities,creditcardsandinsurance.
The eight banking subsidiaries are:

State Bank of India (SBI)

State Bank of Bikaner and Jaipur (SBBJ)
State Bank of Hyderabad (SBH)
State Bank of Indore (SBIR)
State Bank of Mysore (SBM)
State Bank of Patiala (SBP)
State Bank of Saurashtra (SBS)
State Bank of Travancore (SBT)

Shareholding Pattern - State Bank of India

Holder's Name
Promoters
FinancialInstitutions
ForeignInstitutions
GeneralPublic

No of Shares
4475075262
987168011
873268723
449588144

% Share Holding
59.15%
13.05%
11.54%
5.94%
Page | 12

NBanksMutualFunds
OtherCompanies
Others
ForeignNRI
CentralGovt
ForeignOcb

398229546
179791604
33401714
12692941
2043987
10000

5.26%
2.38%
0.44%
0.17%
0.03%
0%

INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks

Commercial
Banks

State co-op
Banks

Indian

Public Sector
Banks

State Bank of
India and its
Subsidiaries

Non-Schedule Banks

Central co-op
Banks and
Primary Cr.
Societies

Commercial Banks

Foreign

Private Sector
Banks

Other Nationalized
Banks

HDFC,ICICI,AXIS
etc

Regional Rural Banks

Page | 13

ABOUT PROJECT TITLES

The main objective of this project is to study the loan scheme of State Bank Of India. The
study was mainly conducted to understand the concept of various loan scheme and eligibility.
The main purpose of the study was to fulfill the need of academic program, which is
important part of MBA (Master of Business Management) degree program has been under
taken as per of 60 days summer training in State Bank of India. The topic of study on loan
product of SBI (Vinchur Branch) Some limitation were also there; study is based upon the
assumption that respondents were truthful in providing the data, Responding get irritated
when the regular questionnaire is done and generally avoid cross questioning.
For colleting the data a questionnaire was prepared so that all the information can be
collected and analyzed. Secondary sources were used to obtain information on State Bank of
India and the other player history.
Non probability sampling method was used for collecting the sample units. It means that
every member of the population has an equal chance to being selected.
On bases of the above mentioned method were used and the data was collected and analyzed
the whole study of the topic mainly moves around three phases
1) AGREECULTURE LONE
2) CAR LOAN
3) HOME LOAN
Basically project passes through these steps to accompany the objective of the study to study
the exact process of loan approval and disbursement. This is the primary objective of the
study.
While studying these objectives no of secondary objectives has been studied and analyzed
with the eligibility of borrowers documents and product features.
While studying the entire objective the report of finance at the site has been collected and
interrelated. It shows the accomplished of the all objective. We also analyzed the scheme
chart, and details. i.e. rare of interest, tenure, EMI , loan to value (LTV) , margin money, gold
fineness , and gold new weight etc.
By using these data and information project has been successful carried out.

Page | 14

LOAN PRODUCT
AGRICULTURAL LOAN

State Bank of India is the pioneer and market leaders in Agri-Financing in the country with a
portfolio of more than Rs. 1,20,000 crs in agri advances covering more than 1.1 lakh farmer
families. We cater to the needs of agriculturists and farmers through a vast network of 10505
rural & semi-urban branches.
Apart from the general branches, SBI has 428 Specialized Agricultural Development
Branches (ADBs) and 18 Agri Commercial Branches (ACBs) for extension of high value
credit to hi-tech agriculture, agri-related SME, processing industry, etc.
Our branches cover a whole gamut of agricultural activities from Farm to Fork, from the land
preparation to post harvest management, processing and marketing.To give special focus to
agriculture lending, Bank has also appointed agri-specialists in various disciplines to handle
projects/ guide farmers in their agri-ventures. Advances are given to borrowers ranging from
very small activities covering poorest of the poor to hi-tech activities involving large fund
outlays.
We also have an effective marketing and recovery team in each region with responsibilities
for marketing and building relationships with dealers of agri-products, organizing
promotional events and for loan sanction, processing, monitoring and recovery.
With a collective effort of Govt. and the people, we are set forth to catalyse growth in the
rural and agri areas and be the Banker to Every Indian

Page | 15

Types of agricultural loans :1. Crop loan :Crop Loans are also called short term loans for Seasonal Agricultural Operations. The
Seasonal Agricultural Operations connote such activities as are undertaken in the process of
raising various crops and are seasonally recurring in nature. The activities include, among
others, ploughing and preparing land for sowing, weeding, transplantation where necessary,
acquiring and applying inputs such as seeds, fertilizers, insecticides etc. and labour for all
operations in the field for raising & harvesting the crops. Thus, the credit required to meet the
current expenditure for raising the crops on land till the crops are harvested is construed as
production or short term credit for seasonal agricultural operations
In terms of Govt. of India instructions for 2013-14, all the crop loans uptoRs. 3 lakh are being
disbursed at the interest rate of 7% p.a. Govt. of India also provides interest subvention of 3%
p.a. to prompt repaying farmers, thus making available the crop loans to them at 4% p.a. To
bring more and more farmers within the institutional credit fold, Government has extended
this scheme to crop loans borrowed by farmers from Private Sector scheduled commercial
banks in respect of loans given within the service area of the branch concerned.Crop loans
beyond Rs. 3 Lakh are being disbursed by the banks at the rate of interest as per RBI and
other conditions as approved by their Board of Directors. In terms of RBI instructions, no
separate security is required for crop loans uptoRs. 1 Lakh. Beyond Rs. 1 lakh the security is
decided by the individual bank in terms of RBI guidelines
Crop loans are given for individual as farmers short term loans for rising crop i.e. crop loan.
This will include traditional/non-traditional plantation and horticulture crop loan are given as
per terms and conditions of NABARD and central government and state government of india.
*Ccrop loan policies for irrigational lands.
* Crop loan policies for uniirrigational lands(is 15000 per hector up to 2 hector no intrestwill
charge for one year then intrest rate will be 5%)

* Loan for orange trees will be 280rs per tree.

* Crop loan for rural agricultural area.
* Crop loan for urban agricultural area.

3. TRACTOR LOANS :Any individual or group of individuals i.e., JLGs/SHGs, institution or organization are
eligible for finance which will have sufficient and regular income either from own farm
activity or custom hiring incomes from the tractor proposed to be purchased and its
accessories Borrower should possess a minimum land holding of 2 Ac

Page | 16

The tractor and accessories purchased with banks finance have to be comprehensively
insured for the full value.For prompt repayment, further concession of interest @1.00% by
way incentive will be extended to the borrower and 0.50% to the tractor dealer. Concession
will be extended in the month of july and will be on the basis of interest recovered between
1st July to 30th june of every yearLoan is repayable in equated monthly installments in 5
years, including grace period of 1 month. (Relaxed in tune with the regular flow of funds in
the hands of the borrower).
Postdated cheques will be obtained from the borrower for the EMI

TRACTOR LOANS
Purpose
Who are eligible
for tractor loan?

Agricultural term loans are sanctioned for purchase of new tractors,

accessories and implements
*Agriculturists (individually or jointly)
*Minimum land holding 4 acres of perennially irrigated land.
*Applicants should score of 56 under the scoring model of the bank.

Loan amount

Security

How to repay the

loan

*Proposals with credit score of 26 & above but upto 55 will be

considered after credit enhancement
Upto 85 % of the cost of the Tractor, trailer and accessories. The cost
includes the Registration charges and insurance premium not exceeding
Rs 15,000/-. Bank will finance only for those models of tractors which
have completed the commercial test from organizations viz. Central
Farm Machinery Training and Testing Institute (CFMTTI) Budni
(Madhya Pradesh) or Farm Machinery Training and Testing Institute
(FMTTI)
Hypothecation of the tractor, accessories and implements. Noting of
Banks hypothecation charge in the RC Book of the tractor is
compulsory in all the cases.
Collateral Security like NSCs, KVPs, Banks Fixed Deposits Surrender
value of LIC policy etc OR Mortgage of agricultural lands
Within a maximum period of 9 years, including a grace period not
exceeding 12 months. The installments shall be payable half-yearly /
yearly, coinciding with the harvesting and marketing period of the crops
proposed to be grown by applicant/borrower

Page | 17

5.Kisan credit card (KCC):Crop loans are generally disbursed by the banks through the mode of Kisan Credit Card
(KCC). The Kisan Credit Card Scheme is in operation throughout the country and is
implemented by Commercial Banks, Cooperative Banks and RRBs. All farmers including
small farmers, marginal farmers, share croppers, oral lessees and tenant farmers are eligible
for issuance of KCC. KCC holders are also covered under Personal Accident Insurance
Scheme (PAIS) against accidental death/permanent disability. Bank assesses farmers
eligibility on the basis of land available for cultivation and the scale of finance fixed by the
District Level Technical Committee in that district and the credit history of the farmer. The
scope of the KCC has recently been broad-based to include term credit and consumption
needs. Government has advised the banks to convert Kisan Credit Card into a Smart Card
cum Debit Card
Kisan Credit Card is a pioneering credit delivery innovation for providing adequate and
timely credit to farmers under single window. It is a flexible and simplified procedure,
adopting whole farm approach, including short-term, medium-term and long-term credit
needs of borrowers for agriculture and allied activities and a reasonable component for
consumption need. Under the scheme, beneficiaries are issued with a credit card and a pass
book or a credit card cum pass book incorporating the name, address, particulars of land
holding, borrowing limit, validity period, a passport size photograph of holder etc., which
serves both as an identity card and facilitate recording of transactions on an ongoing basis.

KISAN CREDIT CARD (KCC)

Purpose:

Who are eligible

for the loan?

To provide timely and adequate credit to farmers to meet their

production credit needs (cultivation expenses) besides meeting
contingency expenses, and expenses related to ancillary activities
through simplified procedure facilitating availment of the loans as and
when needed.
*All farmers-individuals/Joint borrowers who are owner cultivators.
*Tenant farmers, Oral lessees and Share Croppers etc.

Loan amount
Features

*SHGs or Joint Liability Groups of farmers including tenant farmers,

share croppers etc.
*Short term credit limit is fixed for the first year depending upon the
crops cultivated as per proposed cropping pattern & scale of finance
* Post-harvest/ household / consumption requirements
*Maintenance expenses of farm assets, crop insurance, Personal
Accident Insurance Scheme (PAIS) and Asset insurance.
*For every successive years (2nd, 3rd, 4th, and 5th year), the limit will
be stepped up @10%.(short term credit limit sanctioned for 5th year
will be about 150% of the first year limit allowed to farmers)
.
Page | 18

*Investment credit requirement of small value in the nature of farm

implements/ equipments etc (like sprayer, plough etc.,) and repayable
within a period of one year will be included while fixing KCC limit
(This portion of the credit will not be included for automatic step up
during 2nd year to 5th year but credit requirement for this portion in
each year will be reckoned for arriving at the maximum drawal limit for
the respective year).
*The short term loan limit arrived for the 5th year as in (iv) plus
estimated investment loan requirement as in (v) (highest among the five
years) above will be the Maximum Permissible Limit (MPL) and
sanctioned as the Kisan Credit Card Limit.
*Short term loan limit assessed for the first year or for the 2nd to 5th
year plus the estimated investment credit limit required, as in (iv) and
(v) above, will be the Maximum Drawal Limit (MDL) allowed in the
account, for the particular year.
*KCC borrowers shall be issued an ATM cum Debit card (State Bank
Kisan Card), to enable them to withdraw from KCC accounts from
ATMs and PoS terminals.
*KCC will be in the nature of revolving account. Credit balance in the
account, if any, to fetch interest at Savings bank rate.
*Processing charges waived for KCC limit up to Rs.3 lacs.
*Collateral security is waived for
a. limit of up to Rs.1 lac
b. limit up to Rs.3 lacs for loans with tie-up arrangement for recovery.
*KCC accounts should be renewed annually, well before the above due
dates, every year to continue the limit during the KCC validity period of
5 years. Branches shall, therefore, ensure to obtain revival letters before
expiry of 3 years wherever applicable, as per the Limitation Act.
*For the purpose of renewal, branches should obtain a simple
declaration as per the extant guidelines (about crops raised/ proposed to
raise) from the borrowers. The assessment of revised MDL requirement
of the KCC borrower will be made based on proposed cropping pattern
and area declared by him.

Disbursement of
the Loan
Long term Crops

*Eligible crops shall be covered under Crop Insurance Scheme National Agricultural Insurance Scheme (NAIS)
As per the cultivation requirements of the crop, the loan will be
disbursed in cash
(All round the year) - 12 months (from the date of first disbursement)
Borrowers are required to route their farm proceeds or other credits into
the KCC account, with a minimum of loan amount plus interest and
other charges, if any, within the repayment due date.
Page | 19

SBI Home loan

The most favored Home Loan provider-SBI Bank offers Home Loan with attractive interest
rates along with Latest Schemes and Benefits. SBI also provides a Housing loan with
different schemes - SBI Easy Home Loan, Advantage Home Loan, SBI Home Plus, Her
home loan for women.
SBI is the largest lender in home loan category of India with Above 25.6% of market Share.
As per consolidated report SBI has total income of Rs. 257289.51 Crore as on on 31- March
2015. SBI has total assets of above Rs.2529394.00 Crore. SBI has more than 16000 branches
in India including 190 in other countries. SBI already have tie up with GE for Credit card.
SBI is the only Indian bank which is ranked under 500 list of Forbes. SBI is the most
searched bank in India. With a base of 16000+ branches SBI is accessible from most of the
places in India.
SBI Home Loan Schemes:
SBI offers a wide range of home loan products to its customers. You can choose the best
home loan scheme that suits your budget and requirement. SBI home loans come with
exclusive packages and benefits to cater to the home finance needs of all its customers.
Following are some of the home loan options available from SBI.

SBI MaxGain Home Loan:

The SBI MaxGain home loan aims to enable its customers to reduce their interest
burden at no extra cost. This home loan acts as an overdraft account too, giving the
customer privilege to withdraw and deposit amounts depending upon their cash
availability. Bank provides internet banking and cheque book facility with this home
loan. Excess funds when parked with this account impact the overall principal and the
associated interest. Also, a customer can choose to withdraw amount from the linked
account in case of excess parked funds.
Features:

Min. Loan Amount 5 lacs

Max. Loan Amount No upper limit
Interest Rate 0.25% over and above the existing home loan interest
Higher Liquidity, Savings on total interest paid
Pre-closure Charges - Nil
Interest Rate Floating 10.15%

Page | 20

SBI Yuva Home Loan

This SBI home loan is tailored especially for individuals who are young
and generally taking loan for their first home.
The age eligibility is between 21-45 years.
This loan grants an amount which is 20% over and above the regular
loan amount.
This home loan is ideal for fresh professionals and government
employees.
Under this scheme the home loan full repayment starts only after 36
month from the date of availing the loan. For the first 36 months only
interest needs to be repaid.

Features:

Eligibility 21-45 years

Minimum Income Rs.30,000 per month
Pre-closure Charges - Nil
Interest Rate Floating 10.15%

SBI NRI Home Loan

As the name itself suggests, the NRI loan is tailored for NonResident Indians (NRIs) and for People of Indian Origin (PIOs). This
loan is given to an individual who earns a regular income and
whose minimum employment period (in India or abroad) is not be
less than 2 years.

Features:

Min. Loan Amount 3 lacs

Max. Loan Amount No upper limit
Eligibility NRI or PIO
Pre-closure Charges - Nil
Interest Rate Floating 10.15%

SBI Realty:
This SBI loan is for people who want to buy land or plot. The construction
should commence within 2 years from the sanction date of the loan. This
type of loan comes with the flexibility of availing another loan for
construction purposes on the land bought. So a customer is entitled to avail
two simultaneous loans on the SBI realty home loan.

Features:

Max. Loan Amount 15 crores

Page | 21

Loan Tenure Up to 15 years

Pre-closure Charges - Nil
Interest Rate Floating 10.15%

SBI PAL
This is a Pre-Approved Home Loan from State Bank of India. This loan
does not depend upon the property to be bought. SBI grants its customers
the freedom to avail the loan amount before deciding upon the property.
This gives customers the needed confidence to negotiate boldly with
builders/sellers regarding the price of the property.

Features:

Eligibility Depends on the annual income of the applicant

Tenure Pre-Approved Letter of arrangement is valid for a period of 4 months
Min Loan Amount 10 Lacs
Max Loan Amount No upper limit
Pre-closure Charges - Nil
Interest Rate Floating 10.15%

Her Ghar Home Loan:

This is a home loan scheme designed especially for women
applicants. A woman needs to be the sole applicant or the primary
applicant for this type of home loan. Also, the property for which home loan
is being taken should be in the name of the woman applicant or she should
be the primary owner in case it of joint ownership. This home loan scheme
by SBI aims at enabling women to own property and carries a social
obligation in line with the empowerment of women.

Features:

Loan Tenure 30 years

Interest Rate 9.85%
Pre-Payment Charges - Nil

Page | 22

SBI Home Loan Interest RatesUpdated on 28 Aug 2015

SBI Home Loan Details

Interest
Rate
(Floating)

For women - 9.70%

For others - 9.75%

Processin
g Fees

0.025% of LA & Max Processing Fees of 10000

Loan
Tenure

30 years

Preclosure
Charges

Nil

PrePayment
Charges

Nil

Guarantor
Requirem
ent

No Guarantor Required

Page | 23

Youre probably eligible for an SBI Home Loan if you are

At least 18 years old

Less than 60 years old

Salaried / Self-employed with regular income

Earn more than the minimumincome required

Eligibility Criteria, Documentation required for SBI Home Loan

Salaried
Self employed
Page | 24

Age

18 years to 70years

21 years to 70years

Income

Rs.1,20,000 (p.a.)

Rs.2,00,000 (p.a.)

Loan Amount
Offered

5,00,000 - 1,00,00000

5,00,000 - 2,00,00000

Tenure

5years-20years

5years-20years

Current
Experience

2years

3years

1) Application form with

photograph
2) Identity & residence proof
3) Last 3 months salary slip
Documentation
4) Form 16
5) Last 6 months bank salaried
credit statements
6) Processing fee cheque

1) Application form with photograph

2) Identity & residence proof
3) Education qualifications certificate &
proof of business existence
4) Business profile,
5) Last 3 years profit/loss & balance sheet
6) Last 6 months bank statements
7) Processing fee cheque

Gold per carat

7/12 utara
Repayment period
Loan security etc

1) To understand the document involved in various loan and eligibility criteria of the
borrower

Car loan
SBI Bank is actively involved since 1973 in non-profit activity called Community Services
Banking. All their branches and administrative offices throughout the country sponsor and
participate in large number of welfare activities and social causes. Their business is more than
banking because they touch the lives of people anywhere in many ways. Their commitment to
nation-building is complete & comprehensive. SBI provide the best car loan scheme for you.
Read on to learn about the eligibility and documentation requirements for the SBI Car Loan.
SBI as one of the leading banks in India, offers a bag full of banking products. One of its
products known as Car Loans is offering huge bunch of offers and features to its customers.
These features are good enough to capture huge number of faces in SBIs car loan family. To
sum up few, lower EMIs, easy processing, long repayment tenure and an overdraft facility
has made this family grown and will keep it growing.
Page | 25

Car Loans from SBI

SBI is a pioneer in providing a corsage of attributes and features with its banking products.
For car loans, it has exceled the expectations and has provided a new car loan scheme with an
offer of an EMI just @1710 INR per lac per month for 7 years of loan tenure. This sounds to
be a very lucrative offer for the customers to ride their own set of wheels with their full
pocket.
There are many schemes for an SBI car loan like SBI new car loan scheme, SBI combo car
loan scheme, certified pre owned car loan scheme and car loan scheme for used car. So,
people have a wide range of choices to choose between any of the schemes based upon their
preferences and a type of car. Along with the variety of schemes, people gets a huddle of
merits like Low EMI, long tenure, overdraft facility, 85% of car finance on On road price,
payment flexibility and many more.

Page | 26

Youre probably eligible for an SBI

Car Loan if you are04

At least 21 years old

Less than 65 years old

Salaried or self-employedwith regular income

Earn more than the minimumincome required

Page | 27

Documentation needed to apply for

an SBI Car Loan

1. Residence proof

2. Photo ID and age proof

3. Signed application form with photograph

4. Last 6 months bank statement

5. Documentation for salaried applicants:

o
o

Last 3 months salary slips

Form 16 or Income Tax Returns
6. Documentation for self-employed applicants:

Page | 28

Last 3 years Income Tax Returns with

computation of Income
o
Last 3 years CA Certified / Audited Balance
Sheet and Profit & Loss Account
o

SBI Car Loan Interest RatesUpdated on 04 Sep 2015

SBI Car Loan Details

Interest Rate (Monthly reducing

balance)

With effect from 15.08.2015

For Women-10.00% For Men-10.05%

Processing Fees

0.51% of the loan amount with a minimum of Rs 1020 and

maximum of Rs 10200

Pre Closure Charges

Nil

Loan Tenure

1 year to 7 years

Interest Rate (Monthly reducing

balance)

With effect from 15.08.2015

For Women-10.00% For Men-10.05%

Processing Fees

0.51% of the loan amount with a minimum of Rs 1020 and

maximum of Rs 10200

Pre Closure Charges

Nil

Loan Tenure

1 year to 7 years

Page | 29

LITERATURE REVIEW
According to By Stieg Larsson ,An organization, usually a corporation, chartered by a
state or federal government, which does most or all of the following: receives demand
deposits and time deposits, honors instruments drawn on them, and pays interest on them;
discounts notes, makes loans, and invests in securities; collects checks, drafts, and
notes ;certifies depositor's checks; and issues drafts and cashier's checks.
When a bank makes an advance in lump-sum against some security it is called a loan. Here, a specified
amount is sanctioned by the bank to the customers. The loan amount so sanctioned is paid to
the borrower either in cash or by credit to his account. A certain amount of interest has to be
paid by the borrower for the loan that has to be borrowed. A loan can be repaid in lump-sum or
in installments.
Commercial banks generally provide short term loans up to one year for meeting the working
capital requirements. But these days, term loans exceeding one year are also provided by
banks. The term loans may be either medium term or long term loans

Page | 30

OBJECTIVE
As the student of MBA and there after having opportunity to work with such State bank of
India encompasses that I learned exactly these whole process of the loan approval and its
final disbursement to the respective dealer takes place. It is delight me toward this study
because of the following.

To understand the process of loan approval.

To study the interest rate on different loan products of SBI, Dena Bank, NDC Bank,
Axis bank.
To find out customers preference for selecting a particular bank for obtaining
financial services.
To find out the customers preference of type of interest rates.
To find out the market captured by various bank in different loan segment.

Page | 31

NEED, SCOPE & SIGNIFICANCE OUR STUDY

The geographical scope of the study is restricted to Vinchur branch only with sample size of
100 people.
All the analysis and suggestions are based on the analysis of the both primary and secondary
data.
There fore the scope of the study revolves around the following aspects:

Consumer perception towards Advance Product

Consumer awareness about Advance Product scheme and its benefit.
Aware the Bank about the customer problems, especially in case of automobile sector.

Page | 32

RESEARCH METHODOLOGY
.
Research Design:

Quantitative

2) Quantitative method
The preparation of a successful dissertation involves conducting effective research
analyzing data and results presentation all which require a high level of statistical expertise.
We at tutors India provide solution from formulating methodology to the results
presentation. You can approach stats work with any or all of the following steps:

Customer Satisfaction Research Methodology

Study Design
Sample size calculation and justification
Development of questionnaire

Data collection methods:

1) Primary data
2) Secondary data.
1. Primary Data:
Interview
Observation
2. Secondary Data:

Official statistics
Web information
Historical data and information
Textbooks on financial management I.M.Pandey
Personnel Manual of Sbi Vinchur branch.

Page | 33

Tools & techniques

1) Survey
2) Time series analysis
SURVEY
In this my project I am using survey because of I want to find out better rate of interest for
agri loan, car loan, home loan. I am using different technique & method like customer
interview, prospectus, different clients from different banks market view etc.
The survey is a method for collecting information or data as reported by individuals. Surveys
are questionnaires (or a series of questions) that are administered to research participants who
answer the questions themselves. Since the participants are providing the information, it is
referred to as self-report data
Survey research is one of the most important areas of measurement in applied social research.
The broad area of survey research encompasses any measurement procedures that involve
asking questions of respondents. A "survey" can be anything form a short paper-and-pencil
feedback form to an intensive one-on-one in-depth interview

Time series analysis

In this my project I used time series analysis for determining past situation of the bank and to
getting history of market for particular banks. Ex. To find out past performance of bank n the
field of rate of interest, customer overview, market position of the bank.
Time series analysis comprises methods for analyzing time series data in order to extract
meaningful statistics and other characteristics of the data. Time series forecasting is the use of
a model to predict future values based on previously observed values.
Time series analysis and its applications have become increasingly important in various fields
of research, such as business, economics, engineering, medicine, environ metrics, social
sciences, politics, and others. Since Box and Jenkins (1970, 1976) published the seminal
book Time Series Analysis: Forecasting and Control, a number of books and a vast number of
research papers have been published in this area. The goal of this book is to distill and
integrate these research results into cohesive and comprehensible methodologies, and to
provide a streamlined approach to time series analysis and forecasting.
The use of computers and computer software is essential in any modern quantitative analysis,
even more so in time series analysis where complex algorithms and extensive computations
Page | 34

are often required. With the speed and capacity of modern computers, in many situations it is
preferable to adopt a methodology that simplifies the means of conducting an analysis even if
it is at the expense of computation time. Using such an approach, we are able to provide
simplified and effective methodologies for complex subjects in time series analysis and
forecasting
Sampling plans
Definition:- sampling method is the process or drawing a definite number of individuals,
case or observation from a particular universe, selecting part of the total group for
investigation. Sampling method in which all member of a group have an equal and
independent chance of being selected.
Reason for using:

To knowledge of particular data and situation of branch in loan and to find out
weaker section and to improve situation of weaker section and work on it.
For knowing current situation and feedback of consumer
Bias due to human preference and influences eliminated
For counting the performance of consumer
For counting interest of customer on the particular type of personal loan

Sampling size:Sampling size is defined as the representative of the selected universe. It represents as the
reference to be used for the research work. Selection of sampling size can be done
depending on the universe selected and the objective of the research.
The study was done on 100 selected consumers of the company of which effective
responses were gathered from 50 selected consumers. Therefore the sample size which
was drawn was 50 out of 100. The data of 100 selected consumers was obtained from
the consumers database maintained by the company from 2011-2014 and 2014-2015.

Sampling methodThere is a Non-probability sampling method and in that

convenience is used.
Non-probability sampling is a sampling technique where the samples are gathered in a
process that does not give all the individuals in the population equal chances of being
selected.
Sampling is very essential part of research it show that actual work which was done by me
on the field. The sampling size of customer were 100 out of that selected were only 30 for
classify them to understand and study them better these were selected as who had apply for
Car loan and out of that who had taken only Agri loan and others taken home loan, auto
loan education loan etc. Out 30 which was selected for sampling 22 customers taken loan
from State bank of India so it shows that banks popularity in particular area were near
about 70%.
Page | 35

Page | 36

DATA ANALYSIS & DATA INTERPRETATION

1) How many interest rates charged by various bank?
BANK NAME
SBI
DENA
AXIS

AGRI LOAN

CAR LOAN

HOME LOAN

7.00%
7.00%
14.85%

10.05%
10.50%
12.50%

9.85%
10.25%
12.05%

ANALYSIS- SBI charged 7% for agri crop loan,10.05% for car loan &9.85% in home loan
DENA charged 7% for agri crop loan,10.50% for car loan &10.25% in home loan
AXIS charged 14.85% for agri crop loan,12.50% for car loan &12.05% in home loan
16.00%
14.00%
12.00%
10.00%
AGRI LOAN
8.00%

CAR LOAN
HOME LOAN

6.00%
4.00%
2.00%
0.00%
SBI

DENA

AXIS

INTEPRETATION- From the above data analysis we can find that SBI and DENA
charged lower interest rates for agri & car loan than the AXIS bank, SBI charged the
interest on home loan lower than DENA & AXIS bank.

Page | 37

2) From which of the following banks do you prefer to obtain financial

services?

A) SBI

B) DENA BANK

C) NDC

D) AXIS BANK

PARTICULAR

NO. OF PERSON
INTERVIW

NO.OF PERSON
AVAIL LOAN

SBI VINCHUR
DENA BANK
NDC BANK
AXIS BANK

50
40
30
30

35
12
09
12

NO. OF PERSON
AVAILING LOAN VS
NO.OF PERSON OF
THE COMPANY
70.00%
30.00%
30.00%
40.00%

Analysis
70% of persons take loan from SBI Vinchur. 30% of person take loan from
dena bank & NDC bank. 40% of person take loan from AXIS Bank.
50
50
45
40
35
30
25
20
15
10
5
0

40
35
30

12
70.00%

30.00%

30

9
30.00%

12
40.00%

NO. OF PERSON
INTERVIW
NO.OF PERSON AVAIL
LOAN
NO. OF PERSON
AVAILING LOAN VS
NO.OF PERSON OF
THE COMPANY

Page | 38

Interpretation- From the above data analysis we can find that most of the persons
are taking up SBI Vinchur bank loan because they are satisfied with the service given
rate of interest and quick disbursement

3) Which type of interest borrowers prefer?

PARTICULAR

FIXED
FLOATING

NO. OF
BORROWERS
INTERVIW
50
50

NO. OF PEOPLE
PREFER

PERCENTAGE (%)

35
25

70.00%
50.00%

Analysis
70% of respondents prefer fixed interest loan, where as 50% are
respondents prefer floating interest.
50
50
50
45
40

35

35
30
No. of respondents

25

25

FIXED

20

FLOATING

15
10
5

0.7
0.5

0
NO. OF BORROWERS INTERVIW

Page | 39

Interpretation- from the above data analysis we can find that people when
the take loan fixed interest have got an understanding how much they have
got to pay in loan period.

4) Feedback about SBI Vinchur branch?

Sr no

No. of peoples
interview

Agri loan
Car loan
Home loan
Total

15
15
10
40

No. of people feedback

positi negati No
ve
ve
feedba
ck
10
05
00
10
03
02
05
02
03
25
10
05

Page | 40

10

5
40

25

Interpretation- From the above data analysis we can find that 63% peoples
has give positive feedback they are satisfied with the service given rate of
interest & quick disbursement.

Page | 41

5) how do you think the procedures of agri loan, car loan, home loan is?
Particulars

No of person
interview

Agri loan
Car loan
Home loan
Total

50
15
20
85

90

No of persons opinion
convenien
t
30
10
14
54

lengthy
20
05
06
31

85

80
70
60
50
40
30
20
10

54

50

No of person interview
No of persons opinion
convenient

31

30
20

15
10

20
14
5

No of persons opinion
lengthy

0
Agri loan Car loan Home loan

Total

Page | 42

Interpretation- From the above data analysis we can find that 63.52%
borrower agree the loan procedures is convenient in documentation and
eligibility criteria in comparisons with other loan.

6) How much market captured by SBI vinchur branch AGRI loan in the
year 2011 to 2014 ?

Bank name

SBI

DENA

AXIS

Loan amt

2800000

2800000

2800000

Market captured

2400000

1900000

2200000

Analysis - SBI Vinchur branch captured agri loan market around 24 lakh, where
as Dena & axis bank captured agri loan market around 19 lakh to 22 lakh
respectively.

Page | 43

10000000
10000000
9000000

10000000

10000000

8500000
7200000

8000000
7000000

5600000

6000000

Loan amt

5000000

Market captured

4000000
3000000
2000000
1000000
0
SBI

DENA

NDC

Interpretation- From the above data analysis we can find that in the years
of 2011-14 SBI Vinchur branch agri loan captured more market as
compared to the others banks, because in the year 2011-14 they provide the
more total agri loan amount in comparison with other banks.

7) How much market captured by SBI vinchur branch Home loan in the
year 2011 to 2014 ?
Page | 44

Bank name
Loan amt

SBI
12000000

DENA
12000000

NDC
12000000

AXIS
12000000

Market captured

8500000

5500000

3200000

7500000

Analysis- SBI Vinchur branch captured Home loan market around 85 lakh,
where as Dena, NDC & axis bank captured agri loan market around 55 lakh,32
lakh to75 lakh respectively.
12000000
10000000100000001000000010000000
10000000
8500000
7800000
8000000
7200000
5600000

6000000

Loan amt
Market captured

4000000
2000000
0
SBI

DENA

NDC

AXIS

Interpretation- From the above data analysis we can find that in the years
of 2011-14 SBI Vinchur branch home loan captured more market as
compared to the others banks, because in the year 2011-14 they provide the
more total home loan amount in comparison with other banks
Page | 45

8) How much market captured by SBI vinchur branch Car loan in the year
2011 to 2014 ?
Bank name

SBI

DENA

NDC

AXIS

Loan amt

10000000

10000000

10000000

10000000

Bajaj
finance
10000000

Market
captured

8500000

7200000

5600000

7800000

7000000

10000000
9000000
8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0

Loan amt
Market captured

Analysis- SBI
Vinchur branch captured Car loan market around 85 lakh, where as Dena, NDC,
bajaj & axis bank captured Car loan market around 72 lakh,56 lakh 70 lakh to78
lakh respectively.

Page | 46

Interpretation- From the above data analysis we can find that in the years
of 2011-14 SBI Vinchur branch Car loan captured more market as
compared to the others banks, because in the year 2011-14 they provide the
more total Car loan amount in comparison with other banks

Page | 47

LOAN PROCESS

Page | 48

CONTRIBUTION TO THE ORGANIZATION

With the help of this project SBI was able to analyze the bad loans amount discussions were

done as to how to reduce them

With the help of this project SBI was able to analyze loan policy and loan sanction procedure

is too much lengthly so it should be made flexible and easy.

With the help of this project SBI was able to analyze the credit proposal evolution process is

lengthly, therefore valuable clients are lost.

Updating the records of loan schemes and update customer record
Handling client through communication

Page | 49

OBSERVATION AND FINDING

State bank of India rate of interest for agri loan was 9.70%, home loan was

, car loan

only because of government rules in Agricultural & home sector.

There is a very simple procedure followed by bank for loan.

70% of respondents preferred fixed interest rates charged by the bank.

Most of the respondents preferred to obtain the financial services from SBI.
SBI has captured more market in agri loan, car loan & home loan compare
to other banks.

Page | 50

CONCLUSTION
While making the project in State bank of india, Vinchur, Nasik on agricultural, home loan
and car loans there were so many useful and important things come to an observation and it
was a very practical learning process.
Now days the situation of agriculture and allied sector sin india is not stable and shares in the
GDP of agriculture sector is 14% which reducing continuously year on year it has to be
increased for economical development and also improvement of Indian farmers basically
some new schemes should bring by the government and rates of agricultural products should
increased.
While project observe banking structure, working process schedule of banking and current
situation the banking and their competitors are strong and net profit also high mainly of SBI.
Improve efficiency of working should increased and concentrate on recovery of loan.
Situation of agricultural in india is poor focused on our development is important for
agricultural development.
There werevarious types of agricultural loan and various schemes of agricultural
development rates of interest for different types of loans in State bank of India. lasalgaon
NABARD plays vital role in the agricultural development for rural development they provide
loans to the nationalize bank on low rate of interest and bank and distribution charge and
other expenses than they distribution to the farmers
Recovery process was low therefore net profit reduced branch should focus on it and
invovates same new ideas for recovery of loans.
What we really achieved in the project report as follows.
Successfully and without any barriers completion of project, we learn some things new like
banking, loans and agricultural loans, learn about tackling techniques in the critical.
Situation and improvement in communication skill and how to communicate with different
kind of people, improvement self confidence, habit of regularity and discipline.
From all the above conclusions that loans are the process of borrowing and lending it assist
both lender benefited by interest and borrower can use loans for growth and development of
agricultural sector for cultivation, purchase quality seeds, fencing of farms they can use loans
as per their requirement.

Page | 51

SUGGESTIONS
Although the performance of the bank is satisfactory some points if taken in to account can
faster their growth.

The bank should plan to introduce new schemes for attracting new customers and
satisfying the present ones

The bank should improve the customer services of the bank to a better extent.

Public sector banks should speed up their performance regarding priority sector lending.
As their performance in terms of priority sector, agricultural, small scale industrial and
other priority sectors advances was slower than that of private sector banks.

Proper awareness should be given to public regarding the schemes of priority sector by
RBI.

BIBLIOGRAPHY
Page | 52

Website

http://www.statebankofindia.co.in
www.moneycontrol.com
www.google.co.in
www.farmer.gov.in
www.wikipedia.org

Books
Namesh K. Malhotra Research Methodology
Financial Management prasanna Chandra
Research Methodology C.R.Kothari
News paper
Economics Times
Indian express
SBI Times
Times of India

ANNEXURES
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Question Asked By Consumers

1.
2.
3.
4.
5.

What types loan are you providing for Agriculture?

What is the rates interest of various types of Agriculture,home and car loan?
What is the procedure for loans?
What kind of documents should be submitted?
What is the recovery process?

Questions Asked to Consumers

1.
2.
3.
4.
5.

What type of loan you want?

What type of documents you have?
What is your village/city name?
What is your borrowing capacity of loan?
Do you have account in this branch?

State Bank Of India

Page | 54

BALANCE SHEET as on 31st march, 2015

Schedule
No.

Ason
31stMarch
2015
(CurrentYe

Ason
31stMa
rch
2014
74
6,
1466

CAPITALANDLIABILITIES
Capital

Reserves & Surplus

746,57,
31
160640,96,

Deposits

975497,11,
75
2052960,78

23,96
490
9,1
18388

Borrowings

Other Liabilities and Provisions

,88
244663,46,
71
235601,10,

52,35,
2237
59,70
1816

84
2700110,02
,46

03,54
23964
95,30,

144287,54,
67
64299,02,

1140
95,60
530

Investments

Advances

29
695691,75,
26
1692211,33

65,7
5794
01,26
15782
76,68,
105
59,7
610

Minority Interest

TOTAL
ASSETS
Cash and Balances with Reserve Bank of India
Balance with bank sand money at call & short notice 7

Fixed Assets

10

Other Assets

11

,41
12379,29,
52
91241,07,

12

31
2700110,02
,46
1190338,69

96,2
23964
95,30,
11725

Significant Accounting Policies

17

,09
105970,51,
47

65,68,
901
96,9

Notes to Accounts

18

TOTAL
Contingent Liabilities
Bills for Collection

Profit and Loss ac

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For the year ended on 31st march, 2015

I. INCOME
Interest earned
Other Income
TOTAL
II. EXPENDITURE
Interest expended
Operating expenses
Provisions and contingencies
TOTAL
III. PROFIT
Net Profit for the year
Profit brought forward
TOTAL
IV. APPROPRIATIONS
Transfer to Statutory Reserve
Transfer to Capital Reserve
Transfer to Revenue and other Reserves
Dividend for the previous year paid during the year
(including
Dividend for the current year
(i) Interim Dividend
(ii) Final Dividend Proposed
Tax on Dividend for the Current year
Balance carried over to Balance Sheet
TOTAL
Basic Earnings per Share
Diluted Earnings per Share
Significant Accounting Policies
Notes to Accounts

ScheduleNo Year ended

.
31.03.2015
(Current Year)
`

Year ended
31.03.2014
(Previous Year)
`

13
14

152397,07,42
22575,89,26
174972,96,68

136350,80,39
18552,91,64
154903,72,03

15
16

97381,82,36
38677,64,14
25811,92,98
161871,39,48

87068,63,25
35725,85,13
21218,06,48
144012,54,86

13101,57,20
32,48
13101,89,68

10891,17,17
33,93
10891,51,10

4029,07,98
105,50,44
5889,05,56
-

3339,61,91
216,75,30
4796,63,50
1,45

2648,17,28
429,75,94
32,48
13101,89,68
` 17.55
` 17.55

1119,85,96
1119,85,96
298,44,54
32,48
10891,51,10
` 15.68
` 15.68

17
18

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