Description
E-Banking MBA marketing VTU project for all of my dear juniors. My humble request is that to keep my work report for ur reference and plz don't copy and past thank you.
ALL THE BEST
State Bank of India E-Banking 7
VISVESVARAYA TECHNOLOGICAL UNIVERSITY
BELGAUM - 590 018
Summer Project Report on
“SERVICES PROVIDED BY SBI THROUGH E-BANKING WITH REFERENCE TO SBI BRANCHES IN GADAG CITY”
UNDERTAKEN AT
SBI MULGUND NAKA BRANCH, GADAG
Submitted in the partial fulfillment of the requirement for the Award of the Master of Business Administration
Submitted by SUDARSHAN A HALAKERI MBA 4th Semester U.S. NO. 2RH11MBA16
Under the Guidance of
EXTERNAL GUIDE
MR. NAGARAJ ADAVI ASSISTANT
INTERNAL GUIDE
PROF D.H.KUSUGAL MBA FACULTY
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
MASTER OF BUSINESS ADMINISTRATION RURAL ENGINEERING COLLEGE, HULKOTI RTES’S REC, HULKOTI
VISVESVARAYA TECHNOLOGICAL UNIVERSITY
BELGAUM
MASTER OF BUSINESS ADMINISTRATION
This is to Certify that the Summer Project Report carried out by Mr. SUDARSHAN A HALAKERI U.S.No. 2RH11MBA16, a bonafide student of RTE’S SOCIETY RURAL ENGINEERING COLLEGE VTU Center HULKOTI, in partial fulfillment for the award of Master of Business Administration of the Visvesvaraya Technological University, Belgaum during the year 2012-13. It is certified that all correction / suggestions indicated for internal assessment have been incorporated in the Report. The project report has been approved as it satisfies the academic requirements in respect of project work prescribed for the said Degree.
Certificate
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Signature of the Guide External Viva Name of the examiners with Date
Visvesvaraya Technological University, Belguam
Signature
A PROJECT REPORT ON SERVICES PROVIDED BY SBI THROGH E-BANKING WITH REFERENCE TO SBI BRANCHES IN GADAG CITY. At The State Bank of India Mulgund naka Branch Gadag. Submitted in the partial fulfillment of the requirements for the Award of the Degree of MASTER OF BUSINESS ADMINISTRATION.
Under the Guidance of Internal Guide Prof. D.H.Kusugal External Guide Mr. Nagaraj Adavi
Submitted by Mr. Sudarshan A Halakeri USN No. : 2RH11MBA16 MBA IV Semester
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
DEPARTMENT OF MBA RURAL ENGINEERING COLLEGE HULKOTI – 582 205 2012-201
DECLARATION
I am Mr Sudarshan A Halakeri MBA 4th Semester Student of Rural Engineering College Hulkoti, Department of MBA, hereby declare that the project work entitled “Services provided by SBI through E-Banking with reference to SBI Branches in Gadag City”. Is submitted to VTU in partial fulfillment for the requirement for the award of the degree of “Master of Business Administration (MBA)”. The findings and suggestions of this project report are based on the information collected by me during the study period.
To the best of my knowledge and belief, the matter presented in this report has not been submitted previously in part of or full to any universities for the award of any degree or diplomas.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Place : Hulkoti Date :
Sudarshan A Halakeri
ACKNOWLEDGEMENT
“The completion and drafting is a solitary task but which has been made smoother with the help of many”. It human bounded duty to acknowledge those personalities who contribute immensely to their effort and guide me in the right direction”. It gives me immense pleasure in submitting this project report on “Services provided by SBI through E-Banking with reference to SBI Branches in Gadag City”. In partial fulfillment of the requirement for the MBA course awarded Visveswaraya Technological University, Belguam for the academic year 2012-13. I heartily express my thanks to my family members, friends and relatives for their valuable support in completion of this project successfully. I, sincerely express my thanks to Manager of SBI Mulugund naka Branch Mr. A A Siddiqui. For their permission and guidance in my project. I am thankful to my project Guide Prof. D.H. Kusugal, for her support, timely guidance and valuable suggestions. He provided the required information and inspired me immensely to execute this project report successfully.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 I wish to place on the record my deep sense of gratitude to our beloved H.O.D Miss. Kavita Acchalli For her constant encouragement, valuable suggestions throughout this project and making this project more meaningful and worthy. I am very much grateful to our principal Dr. V. M. Patil for his kind co-operation, who helped in development of this project. Finally, I wish to convey my sincere thanks to all those who have directly or indirectly helped me during the course of the study. Place : HULKOTI Date : Mr. SUDARSHAN HALAKERI MBA 4th semester.
PART - A INDUSTRY PROFILE 1-3 COMPANY PROFILE 4-6 Background and inception of the company 7-10 Nature of the business carried 10 Vision, Mission and Quality Policy 10 Products/ Services Profile 11 Area of Operation – Global / National / Regional 12 Ownership Pattern 12 Competitors Information 12 Infrastructural Facilities 12 Achievement/Award if any 13 Work flow model (End to End) 13-14 Future growth and prospects. 14 Mckensy’s 7S frame work with special reference to organization under study 15-18 SWOT analysis 19 Analysis of Financial statement. Learning experience 20
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 PART - B 1. General Introduction Statement of the problem Objectives of the study Scope of the Study Methodology Limitations of the study Analysis, Design, Interpretation findings suggestions Conclusions and Recommendations. Annexure Bibliography
21 22 22 23 37 25 26-38 39 42-51 52
Industry Profile:
A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank is the connection between customers that have capital deficits and customers with capital surpluses. Due to their influence within a financial system and an economy, banks are generally highly regulated in most countries. Most banks operate under a system known as fractional reserve banking where they hold only a small reserve of the funds deposited and lend out the rest for profit. They are generally subject to minimum capital requirements which are based on an international set of capital standards, known as the Basel Accords. The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472. It is followed by Berenberg Bank of Hamburg (1590) and Sveriges Riksbank of Sweden (1668). Banking in its modern sense evolved in rich cities of Renaissance Italy, such
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 as Florence, Venice and Genoa. In the history of banking, a number of banking dynasties —among them
Origin of the word:
The word bank was borrowed in Middle English from Middle French banque, from Old Italian banca, from Old High German banc, bank "bench, counter". Benches were used as desks or exchange counters during the Renaissance by Florentine bankers, who used to make their transactions atop desks covered by green tablecloths. Another possible origin of the word is from the Sanskrit words (???) 'byaya' (expense) and 'onka' (calculation) = byaya-onka. This word still survives in Bangla, which is one of Sanskrit's child languages. ???? + ?? = ???? . Such expense calculations were the biggest part of mathematical treatises written by Indian mathematicians as early as 500 B.C. Banking in India in the modern sense originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1770; both are now defunct. The oldest bank still in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955.
History: In ancient India there is evidence of loans from the Vedic period (beginning
1750 BC). Later during the Maurya dynasty (321 to 185 BC), an instrument called adesha was in use, which was an order on a banker desiring him to pay the money of the note to
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 a third person, which corresponds to the definition of a bill of exchange as we understand it today. During the Buddhist period, there was considerable use of these instruments. Merchants in large towns gave letters of credit to one another.
Colonial era:
During the colonial era merchants in Calcutta established the Union Bank in 1839, but it failed in 1840 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India, it was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. Foreign banks too started to appear, particularly in Calcutta, in the 1860s. The Comptoir d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondicherry, then a French possession, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The favor of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalized banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking". During the First World War (1914–1918) through the end of the Second World War (1939–1945), and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table:
Years
Number of banks Authorised capital Paid-up Capital that failed (Rs. Lakhs) 274 710 56 231 76 209 (Rs. Lakhs) 35 109 5 4 25 1
1913 12 1914 42 1915 11 1916 13 1917 9 1918 7
Post-Independence:
The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. The Reserve Bank of India, India's central banking authority, was established in April 1935, but was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b). In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India". The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors. Nationalization in the 1960s
Banks Nationalization in India: Newspaper Clipping, Times of India, July 20, 1969 Despite the provisions, control and regulations of Reserve Bank of India, banks in India except the State Bank of India or SBI, continued to be owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry. Indira Gandhi, then Prime Minister of India, expressed the intention of the Government of India in the annual conference of the All India Congress Meeting in a
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 paper entitled "Stray thoughts on Bank Nationalization." The meeting received the paper with enthusiasm.
Liberalization in the 1990s: In the early 1990s, the then Narasimha
Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, UTI Bank (since renamed Axis Bank),ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.
Structure of banking sector in India:
Ministry of Finance RBI Scheduled Banks
Commercial Banks
Cooperative Banks
Public sector Banks
Private sector Banks
Foreign Banks
Regional Rural Banks
Urban Cooperative
State Cooperative
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Reserve Bank of India:
The RBI is India's central bank. The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. RBI acts as a banker to the Government and Banks. The Central Bank maintains record of Government revenue and expenditure under various heads. It maintains deposit accounts of all other banks and advances money to other banks, when needed. Another important function of the Central Bank is the issuance of currency notes, regulating their circulation in the country by different methods.
Scheduled Banks:
All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are scheduled banks. These banks comprise Scheduled Commercial Banks and Scheduled Cooperative Banks. The type of banks comes under these Scheduled Commercial Banks and Scheduled Cooperative Banks can be seen in the above figure. All most all banks are Scheduled banks in India.
Commercial Banks:
Commercial banks may be defined as, any banking organization that deals with the deposits and loans of business organizations. Commercial banks issue bank checks and drafts, as well as accept money on term deposits. Commercial banks also act as moneylenders, by way of installment loans and overdrafts. Commercial banks also allow
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 for a variety of deposit accounts, such as checking, savings, and time deposit. These institutions are run to make a profit and owned by a group of individuals.
Public Sector Banks:
These are banks where majority stake is held by the Government of India. Examples of public sector banks are: SBI, Bank of India, Canara Bank, etc.
Private Sector Banks:
These are banks majority of share capital of the bank is held by private individuals. These banks are registered as companies with limited liability. Examples of private sector banks are: ICICI Bank, Axis bank, HDFC, etc.
Foreign Banks:
These banks are registered and have their headquarters in a foreign country but operate their branches in our country. Examples of foreign banks in India are: HSBC, Citibank, Standard Chartered Bank, etc.
Regional Rural Banks:
Regional Rural Banks were established under the provisions of an Ordinance promulgated on the 26th September 1975 and the RRB Act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. The area of operation of RRBs is limited to the area as notified by GoI covering one or more districts in the State. RRBs are jointly owned by GoI, the concerned State Government and Sponsor Banks (27 scheduled commercial banks and one State Cooperative Bank); the issued capital of a RRB is shared by the owners in the proportion of 50%, 15% and 35% respectively. Prathama bank is the first Regional Rural Bank in India located in the city Moradabad in Uttar Pradesh.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Co-operative Banks:
A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest. Co-operative banks generally provide their members with a wide range of banking and financial services (loans, deposits, banking accounts, etc). They provide limited banking products and are specialists in agriculture-related products. Cooperative banks are the primary financiers of agricultural activities, some small-scale industries and self-employed workers. Co-operative banks function on the basis of "no-profit no-loss". Anyonya Co-operative Bank Limited (ACBL) is the first co-operative bank in India located in the city of Vadodara in Gujarat.
Company Profile:
Bank Name: Branch Name: Branch Address: Dept. of MBA
State Bank of India MULGUND NAKA GADAG Code: 9249 MULGUND ROAD Rural Engineering College
State Bank of India E-Banking 7
City: State: Phone: Micr Code: IFSC Code: RTGS: Core banking: Website: Internet Banking Site
GADAG Karnataka (08372)38623 582002004 SBIN0009249 YES Available http://www.sbi.co.in https://www.onlinesbi.com
A) Background and Inception:
State Bank of India (SBI) is banking and financial services based company in India. It is a state-owned corporation with its headquarters in Mumbai, Maharashtra. As of March 2012, it had assets of US$360 billion and 14,119 branches, including 173 foreign offices in 37 countries across the globe making it the largest banking and financial services company in India. State Bank of India (SBI) is the nation's largest and oldest bank. Tracing its roots back some 200 years to the British East India Company (and initially established as the Bank of Calcutta in 1806) also owns majority stakes in five associate banks. The bank has
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 other units devoted to capital markets, fund management, factoring and commercial services, credit cards, insurance, and brokerage services. The Reserve Bank of India owns about 60% of State Bank of India.
History:
The roots of the State Bank of India lie in the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as joint stock companies and were the result of the royal charters (a formal document issued by a British monarch as letters patent, granting a right or power to an individual or a body corporate). These three banks received the exclusive right to issue paper currency in 1861 with the Paper Currency Act, a right they retained until the formation of the Reserve Bank of India. The Presidency banks amalgamated on 27 January 1921, and the re-organized banking entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock company. Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 30 April 1955, the Imperial Bank of India became the State Bank of India. The government of India recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority. In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which made eight state banks associates of SBI.
Current Board of Directors:
After the end of Om. Prakash Bhatt's reign as SBI chairman on 31 March 2011, the post was taken over by Pratip Chaudhuri, who is the former deputy managing director of the Dept. of MBA Rural Engineering College
State Bank of India E-Banking 7 international division of SBI. As of 4 August 2011, there are twelve members in the SBI board of directors.
Associate Banks:
SBI has five associate banks; all use the same logo of a blue circle and all the associates use the "State Bank of" name, followed by the regional headquarters: State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore
B) Nature of the business carried:
Commercial banks are an organization which normally performs certain financial transactions. It performs the twin task of accepting deposits from members of public and make advances to needy and worthy people from the society. When banks accept deposits its liabilities increase and it becomes a debtor, but when it makes advances its assets increases and it becomes a creditor. Banking transactions are socially and legally approved. It is responsible in maintaining the deposits of its account holder
C) Vision, Mission and Quality Policy:
Vision statement: My SBI My Customer first. Dept. of MBA Rural Engineering College
State Bank of India E-Banking 7 My SBI: first in customer satisfaction Mission statement: We will be prompt, polite and proactive with our customers. We will speak the language of young India. We will create products and services that help our customers achieve their goals. We will go beyond the call of duty to make our customers feel valued. We will be of service even in the remotest part of our country. We will offer excellence in services to those abroad as much as we do to those in India. We will imbibe state-of-the-art technology to drive excellence. Values: We will always be honest, transparent and ethical. We will respect our customers and fellow associates. We will be knowledge driven. We will learn and we will share our learning. We will never take the easy way out. We will do everything we can to contribute to the community we work in. We will nurture pride in India.
D) Products and Services Profile:
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 SBI offers Corporate and Retail Internet Banking Products and Other Value Added Services Products Khata Khata Plus Saral Vyapaar Vistaar Electronic Vendor Finance Electronic Dealer Finance Direct Debit E-Collection Services Access to multiple users Account view / Statement Funds Transfer Third party funds transfer (RTGS/NEFT) Demand Draft request Utility Bill Payment Bulk transaction through file upload Direct and indirect tax payment SMS/Email alerts
Products:
Khata: Derive an advantage over others; advantage of accessing your accounts 24 X 7. Khata enables you to access your account information anywhere anytime. You will have the following advantages: • • • Enquiry rights on the accounts Facility to view account information and download account statement of your account. Suitable for single user operated accounts.
Khata Plus:
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 Derive an added advantage over others by getting multiple accesses to your accounts 24 X 7. Khata Plus enables multiple people in your business to access your account information anywhere anytime. Saral: Single user operated, user friendly and simple. Transaction rights on the accounts. Facility to view account information and download account statement of your account. Facility to transfer your funds to: SBI accounts(other than your own accounts) Consolidated limit per day Rs.5.00 Lacs Other Bank Accounts (RTGS/NEFT) --- Consolidated limit per day Rs.5.00 Lacs Merchant Payments --- Consolidated limit per day Rs.5.00 Lacs Vyapaar: Exercise the privilege to transact over the internet, make payments the cyber way, conduct business in style. Equip with Vyapaar and facilitate your business needs. Vistaar: Freedom to operate your business at any geographical location from wherever you desire. Freedom to take urgent financial decisions from any situation. Freedom to empower your people to conduct business the modern way yet within the framework laid down by you. Freedom from branch dependency. Electronic Vendor Finance: Electronic Vendor Financing Scheme (e-VFS ) and Electronic Dealer Financing Scheme (e-DFS) State Bank of India introduces Supply Chain Finance by leveraging its state of the art technology for the convenience of the customers. SCF will strengthen the relationship of SBI with the Corporate World by financing their supply chain partners.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 Electronic Dealer Finance: Electronic Vendor Financing Scheme (e-VFS ) and Electronic Dealer Financing Scheme (e-DFS) State Bank of India introduces Supply Chain Finance by leveraging its state of the art technology for the convenience of the customers. SCF will strengthen the relationship of SBI with the Corporate World by financing their supply chain partners. Direct Debit: Direct debit is a facility given to Corporate (Suppliers) having Vistaar facility and supplying goods to their Dealers (Dealers need not be availing INB facility) whereby the Corporate (Supplier) can directly debit the accounts of their dealers maintained at SBI branches at different locations. In this facility the Supplier and the Bank will enter in to a bipartite agreement, based on which, the Dealer will provide a mandate to the supplier for debiting his account up to a specific limit. Services: Account view / Statement: OnlineSBI can generate an account statement for a date range for any of your accounts. The statement includes transaction details, opening, closing and accumulated balance in the account. Funds Transfer: • • • • • • You can now avail a bouquet of funds transfer services through Internet banking Transfer funds within your own accounts Transfer funds to third party account held in the same bank Make an Inter bank funds transfer to any account held in any bank including State Bank Group Pay any VISA credit card bill Transfer funds to religious and charitable institutions
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 • • • Record standing instructions to transfer a fixed amount at a scheduled frequency for a period not exceeding one year Transfer funds to NRE PIS accounts to facilitate online trading Third party funds transfer (RTGS/NEFT)
Inter Bank Transfer: enables electronic transfer of funds from the account of the remitter in one Bank to the account of the beneficiary maintained with any other Bank branch. There are two systems of Inter Bank Transfer - RTGS and NEFT. Both these systems are maintained by Reserve Bank of India. Demand Draft request: OnlineSBI enables customers to issue demand drafts online. Customer has the option to collect the draft from branch or give his mandate to dispatch the draft by courier to the beneficiary. Bill Payment: Many categories of Billers are available for payment using OnlineSBI. For e.g. Credit Card, Insurance, Telephone Payment etc. Utility Bill Payment: SBI e-PAY - A simple and convenient service for receiving and paying your bills online • • • • No more late payments No more queues No more hassles of depositing cheques Direct and indirect tax payment
Direct Taxes (OLTAS):
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 OnlineSBI provides the facility to pay direct taxes online which includes payment of TDS, Income Tax, Corporation Tax, Security Transactions Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax, Gift Tax, Cash Transaction Tax and Fringe Benefits Tax. As a tax payer, you need to have a bank account enabled for net banking facility with transaction rights in anyone of our branches. Indirect Taxes (CBEC): OnlineSBI provides the facility to pay Indirect taxes online. As a tax payer, you need to have a bank account enabled for net banking facility with transaction rights in anyone of our branches. Please find below the procedure for making the payment. Indirect Taxes (Customs): To pay Indirect Taxes (Customs) through the internet:
Offline Products/Services:
PRODUCTS/SERVICE PROFILE SBI Term Deposits SBI Recurring Deposits SBI Housing Loan SBI Car Loan SBI Educational Loan SBI Personal Loan SBI Current account SBI Savings bank account Special term deposits SBI Loan For Pensioners Loan Against Mortgage Of Property Loan Against Shares & Debentures Rent Plus Scheme Medi-Plus Scheme Rates Of Interest Savings plus account Basic banking ‘no frills account’ Premium savings account
Multi option deposits scheme Demat account
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
PERSONAL BANKING- State bank of India offers a wide range of services in the Personal Banking Segment which are indexed here.
GOLD BANKING Retail sale of gold coin FAQ-Gold deposits scheme Gold deposits scheme(GDS) Sale of gold and gold metal loans
SERVICES Listed on the left are Services, SBI offers to its customers. • • • • • DOMESTIC TREASURY BROKING SERVICES REVISED SERVICE CHARGES ATM SERVICES INTERNET BANKING
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 • • • • • • • STATE BANK MOBICASH E-PAY E-RAIL RBIEFT SAFE DEPOSIT LOCKER MICR CODES FOREIGN INWARD REMITTANCES
MOBILE BANKING
State Bank FreedoM – Your Mobile Your Bank Away from home, balance enquiries can be made and/or money sent to the loved ones or bills can be paid anytime 24x7!!! That is what State Bank FreedoM offers -convenient, simple, secure, anytime and anywhere banking. 1. Mobile Banking Service over Application/ Wireless Application Protocol (WAP) The service is available on java enabled /Android mobile phones (with or without GPRS) where the user is required to download the application on to the mobile handset. The service can also be availed via WAP on all phones (java/non java) with GPRS connection. The following functionalities are available:
• • • • • • •
Funds transfer (within and outside the bank) Interbank Mobile Payment Services (IMPS): Enquiry services (Balance enquiry/ Mini statement) Cheque book request Demat Enquiry Service Bill Payment (Utility bills, credit cards, Insurance premium), Donations, Subscriptions Mobile Top up
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
•
M Commerce (Top up of Tatasky, BigTV, SunDirect, DishTV, DigitalTV and Videocon d2h connections, SBI life insurance premium)
2. Mobile Banking Service over SMS: The service is available on all phones (java/non java) with/without GPRS connection. No need to download the application. Ordinary SMS charges are applicable. The following functionalities are available: • • • • • • Enquiry Services (Balance Enquiry/Mini Statement) Mobile Top up DTH Top up/ recharge IMPS- Mobile to Mobile Transfer Change MPIN As a matter of abundant precaution, Customers are requested to delete all the messages sent to the number 9223440000, once the response for their request has been received.
3. Mobile Banking Service over USSD (Unstructured Supplementary Service Data) The service is available on all phones (java/non java) with/without GPRS connection. No need to download the application. The following functionalities are available: • • • Enquiry Services (Balance Enquiry/Mini Statement) Mobile Top up Funds Transfer (within Bank) ATM SERVICES
STATE BANK NETWORKED ATM SERVICES State Bank offers you the convenience of over 26,000 ATMs in India, the largest network in the country and continuing to expand fast! This means that you can transact free of cost at the ATMs of State Bank Group (This includes the ATMs of State Bank of India as well as the Associate Banks - namely, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
State Bank of Travancore) and wholly owned subsidiary viz. SBI Commercial and International Bank Ltd., using the State Bank ATM-cum-Debit (Cash Plus) card.
KINDS OF CARDS ACCEPTED AT STATE BANK ATMs
Besides all cards of State Bank of India, State Bank ATM-Cum-Debit Card and State Bank International ATM-Cum-Debit Cards following cards are also accepted at State Bank ATMs: 1) State Bank Credit Card 2) Cards issued by other banks displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos 3) All Debit/ Credit Cards issued by any bank outside India displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos
State Bank ATM-cum-Debit (State Bank Cash plus) Card:
India's largest bank is proud to offer you unparalleled convenience viz. State Bank ATM-cum-Debit (Cash Plus) card. With this card, there is no need to carry cash in your wallet. You can now withdraw cash and make purchases anytime you wish to with your ATM-cum-Debit Card. Get an ATM-cum-Debit card with which you can transact for FREE at any of over 26,000 ATMs of State Bank Group within our country.
E) Area of Operation –
The business operations of SBI can be broadly classified into the key income generating areas such as... • • • National Banking International Banking Corporate Banking Rural Engineering College
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State Bank of India E-Banking 7 • • Treasury operations Associates and subsidiaries.
F) Ownership Pattern:
Holder's Name Promoters Financial Institutions Foreign Institutions General Public NBanks Mutual Funds Other Companies Foreign NRI Others Central Govt Foreign Ocb Foreign Collaborators Foreign Industries No of Shares 413252443 79444729 65020546 39345464 35857120 19510691 1039352 824231 195151 32310 415 296 % Share Holding 61.58% 11.84% 9.69% 5.86% 5.34% 2.91% 0.15% 0.12% 0.03% 0.00% 0.00% 0.00%
G) Competitors Information:
Top performing Public & Private sector Banks: Some of the major competitors for SBI in the banking sector in Gadag city are • • • ICICI Bank HDFC Bank Axis Bank Rural Engineering College
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State Bank of India E-Banking 7 • Syndicate Bank.
However in terms of average market share, SBI is by far the largest player in the market.
H) Infrastructural Facilities:
The Bank is well equipped with good quality furniture’s, design, interior decoration and air condition enabled building, drinking water facility and good ambiance. The CC cameras have been introduced for customer’s safety. The layout of the building enables workflow easier for customers and good seating arrangement. the computer systems are well configured and providing quick services to the customers and a large build-up area about 4000sq.ft. area with one ATM machine within the building located at Mulgund Road Gadag.
I) Recent awards and recognitions:
• • • • • • • • • Best Online Banking Award, Best Customer Initiative Award & Best Risk Management Award (Runner Up) by IBA Banking Technology Awards 2010 The Bank of the year 2009, India (won the second year in a row) by The Banker Magazine Best Bank – Large and Most Socially Responsible Bank by the Business Bank Awards 2009 Best Bank 2009 by Business India The Most Trusted Brand 2009 by The Economic Times Most Preferred Bank & Most preferred Home loan provider by CNBC Visionaries of Financial Inclusion By FINO Technology Bank of the Year by IBA Banking Technology Awards SKOCH Award 2010 for Virtual corporation Category for its e-payment solution The Brand Trust Report 11th most trusted brand in Hindustan.
J) Work flow model:
For Deposits Customers Deposit Dept. of MBA Rural Engineering College
State Bank of India E-Banking 7
Application review and Documentation Processing Cash, Cheque and Draft Accounts For Loans: Work done Customers Deposit Specific Requirements Filling of Application Application review Decision Reject Document Loan disbursement Repayment of Interest
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K) Future growth and prospects:
To study of this topic will help to get the knowledge about process of internet banking and usefulness to banking industry. As of study contains the 360 degree information regarding SBI and its internet banking. Hence the study will lead to new ways to tackle the problems and the SWOC of SBI in respect of internet banking. Electronic banking is a growth industry. A flood of “banks”— state banks, community banks, and thrift institutions— as well as businesses and financial investment firms have opened transactional banking sites. International Data Corporation, a research firm, notes that sales of Internet banking applications, including the software to build websites, reached more than $93 million in 1998.24 International Data projected sales increases of 250 percent in 1999, with Internet banking applications accounting for approximately 33 percent of all U.S. banking applications on the market. The bank consulting firm of Dannenberg and Kellner predicts that Internet banking will become more attractive and more competitive when institutions offering such services expand their distribution systems and offer personal online financial advice over the Internet. As the industry continues to grow and expand globally, so too will the opportunities for fraud and money laundering, particularly in bank havens and offshore financial services centers. Customers of facilities located in such spots are known to exploit legislative loopholes or banking provisions that facilitate clandestine activity. In the face of this challenge, regulatory authorities have continued to assess their policies, to identify flaws and, as is appropriate, take action to minimize the risk of criminal misuse of the banking system. Given the global nature of the Internet environment, however, this effort must include multilateral consultations among concerned governments if it is to be successful.
3) Mckensy’s 7S frame work with special reference to organization under study:
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State Bank of India E-Banking 7 Introduction This paper discusses McKinsey's 7S Model that was created by the consulting company McKinsey and Company in the early 1980s. Since then it has been widely used by practitioners and academics alike in analyzing hundreds of organisations. The paper explains each of the seven components of the model and the links between them. It also includes practical guidance and advice for the students to analyze organisations using this model. At the end, some sources for further information on the model and case studies available on this website are mentioned. The McKinsey 7S model was named after a consulting company, McKinsey and Company, which has conducted applied research in business and industry (Pascale & Athos, 1981; Peters & Waterman, 1982). All of the authors worked as consultants at McKinsey and Company; in the 1980s, they used the model to analyze over 70 large organizations. The McKinsey 7S Framework was created as a recognizable and easily remembered model in business. The seven variables, which the authors term "levers", all begin with the letter "S":
Hard Elements
Soft Elements
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State Bank of India E-Banking 7 Strategy Shared Values Structure Skills Systems Style Staff These seven variables include structure, strategy, systems, skills, style, staff and shared values. Structure is defined as the skeleton of the organization or the organizational chart. The authors describe strategy as the plan or course of action in allocating resources to achieve identified goals over time. The systems are the routine processes and procedures followed within the organization. Staff are described in terms of personnel categories within the organization (e.g. engineers), whereas the skills variable refers to the capabilities of the staff within the organization as a whole. The way in which key managers behave in achieving organizational goals is considered to be the style variable; this variable is thought to encompass the cultural style of the organization. The shared values variable, originally termed super ordinate goals, refers to the significant meanings or guiding concepts that organizational members share (Peters and Waterman, 1982). The shape of the model (as shown in figure 1) was also designed to illustrate the interdependency of the variables.
Strategy Structure Systems Style Staff Shared values skills MCKINESEY 7S MODEL Plans for the allocation of a firms scares resources, overtime, to reach identified goals, environment, competition, customer. There was organization’s unit relate to each other; centralized, functional division, decentralized, matrix, network holding etc… The procedure, process and routine that characterized how important work is to be done. Cultural style of the organization and how key manager behave in achieving the organization goal. Numbers and types of personnel within the organization. The interconnecting center of Mckinsey’s model is shared values. What does the organization stands for and what it believe in central believe and attitude. Distinctive capacities of personnel or of the organization as a whole.
The organizational study of SBI Mulugund Naka Branch Gadag.
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State Bank of India E-Banking 7 Founder: A person named Ramakishen Dutt set up the first Bank of India in Kolkata in 1828 List of present directors: List of Directors on the Central Board of State Bank of India (As on 04th February, 2013) Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Name Shri Pratip Chaudhuri Shri Hemant G. Contractor Shri Diwakar Gupta Shri A. Krishna Kumar Shri S.Vishvanathan Shri S. Venkatachalam Shri D. Sundaram Shri Parthasarathy Iyengar Shri Thomas Mathew Shri Jyoti Bhushan Mohapatra Shri S.K. Mukherjee Designation Chairman Managing Director Managing Director Managing Director Managing Director Director Director Director Director Under Section of SBI Act 1955 19 (a) 19 (b) 19 (b) 19 (b) 19 (b) 19 (c) 19 (c) 19 (c) 19 (c) 19 (ca) 19 (cb) 19 (d) 19 (d) 19 (d)
15 16 Organization Chart:
Workmen Employee Director Officer Employee Director Dr. Rajiv Kumar Director Shri Deepak Amin Director Shri Harichandra Director Bahadur Singh Shri Rajiv Takru Director Dr. Urjit R. Patel Director
19 (e) 19 (f)
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List of staff members: Manager Deputy Manager Asst. Manager Sr. Special. Asst. Manager Assistants : A A Siddiqui : Suryakant Bheemappa : S Harish : Shreepad N Yaraguppa : K H Tahashildar : Ashok Naik : Vijayalakshmi.K : Nagraj.Adavi : R.B….. : Laxmi.N.Merug : Manjunath Talwar : Joshi Manohar : Santoshkumar Hullur : A.A.Parabhat : Gajendragad : Hublikar
Messengers
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4) SWOT ANALYSIS : SBI has its roots since 1806 which was later transformed under various names, finally SBI Was established after the act in parliament on May 1955. In the year 1959 SBI took over 8 state owned banks and since then it started to grow up carrying its heritage of servicing people at various economic levels. Strengths: SBI is the largest bank in India in terms of market share, revenue and assets. As per recent data the bank has more than 13,000 outlets and 25,000 ATM centers The bank has its presence in 32 countries engaging currency trade all over the world. The bank has a merged with State Bank of Saurashtra, State bank of Indore and the bank is planning to go further acquisition in the current FY2012. SBI has the first mover advantage in commercial banking service SBI has recently changed its vision and mission statements showing a sign of inclination towards new age banking services Weakness: Lack of proper technology driven services when compared to private banks Employees show reluctance to solve issues quickly due to higher job security and customers’ waiting period is long when compared to private banks The banks spends a huge amount on its rented buildings SBI has the largest number of employees in banking sector, hence the bank spends a considerable amount of its income in employee’s salary compensation In spite of modernization, the bank still carries the perception of traditional bank to new age customers SBI fails to attract salary accounts of corporate and many government sector employees salary accounts are also shifted to private bank for ease of operations unlike before Opportunities: SBI’s merger with five more banks namely State Bank of Hyderebad, State bank of Patiala, State bank of Bikaber and Jaipur, State of bank of Travancore and State bank of Mysore are in approval stage mergers will result in expansion of market share to defend its number one position SBI is planning to expand and invest in international operations due to good inflow of money from Asian Market since the bank is yet to modernize few
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State Bank of India E-Banking 7 of its banking operations, there is a better scope of using advanced technologies and software to improve customer relations Young and talented pool of graduates and B schools are in rise to open new horizon to so called “old government bank” Threats: Net profit of the year has decline from 9166.05 in the year FY 2010 to 7,370.35 in the year FY2011. This shows the reduce in market share to its close competitor ICICI other private banks like HDFC, AXIS bank etc. FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as people tend to switch to foreign banks for better facilities and technologies in banking service other government banks like PNB, Andhra, Allahabad bank and Indian bank are showing customer prefer to switch to private banks and financial service providers for loans and mortgages, as SBI involves stringent verification procedures and take long time for processing. 6) Learning experience: The plant training at SBI Mulugund naka branch Gadag has created wisdom of practical exposure and illumination in my mind as to what actually a Bank is and how theoretical concepts practiced in actuality. In these days of my plant training in SBI Bank I developed a sense of interest in learning new things and I went on to learn various aspects of Internet banking. I got to know how internet banking works in order to give a best quality for their customers. The study gave me the opportunity to interact with various functional heads and staff in order to know the functioning of their day to day operations and the sense of working in the organization was known. Several management concepts were slightly difficult to explore in a classroom. But after the organization training I have felt empowered with confidence to understand different management concepts in a realistic manner. Importance of different management functions such as planning, organizing, staffing, directing and controlling was known which guide the organization in facing competition. I also came to know how different employees/workers have different skills, talents, abilities, attitudes etc. and how they are being co-ordinate and utilized in a most favorable manner, in achieving organizational goals. My experience in the company with the entire department’s in-charge was also good, as all of them were really very co-operative and also very helpful in providing information needed by me and all of them explained everything concerned with the in plant training, in detail which was very helpful for me to prepare the final report.
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State Bank of India E-Banking 7 In addition, I feel that in plant training has analyzed my personal skills, talent, ability, attitude etc. which I hope in my future line of business in contributing to the organization as well as nation by working professionally and efficiently.
A. General Introduction • • • • Statement of the problem Objectives of the study Scope of the Study Methodology
E-Banking: Electronic Fund Transfers Electronic banking, also known as electronic fund transfer (EFT), uses computer and electronic technology in place of cheques and other paper transactions. EFTs are initiated through devices like cards or codes that let you, or those you authorize, access your account. Many financial institutions use ATM or debit cards and Personal Identification Numbers (PINs) for this purpose. Some use other types of debit cards that require your signature or a scan. For example, some use radio frequency identification (RFID) or other forms of "contactless" technology that scan your information without direct contact with you. The federal Electronic Fund Transfer Act (EFT Act) covers some electronic consumer transactions.
Here are some common EFT services: ATMs are electronic terminals that let you bank almost virtually any time. To withdraw cash, make deposits, or transfer funds between accounts, you generally insert
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State Bank of India E-Banking 7 an ATM card and enter your PIN. Some financial institutions and ATM owners charge a fee, particularly if you don't have accounts with them or if your transactions take place at remote locations.
AUTOMATED TELLER MACHINES (ATM): An automated teller machine or automatic teller machine(ATM) is an electronic computerized telecommunications device that allows a financial institution's customers to directly use a secure method of communication to access their bank accounts, in order to make cash withdrawals (or cash advances using a credit card) and check their account balances without the need for a human bank teller. Many ATMs also allow people to deposit cash or cheques, transfer money between their bank accounts, top up their mobile phones' pre-paid accounts or even buy postage stamps. On most modern ATMs, the customer identifies him or herself by inserting a plastic card with a magnetic stripe or a plastic smartcard with a chip that contains his or her account number. The customer then verifies their identity by entering a pass code, often referred to as a PIN (Personal Identification Number) of four or more digits. Upon successful entry of the PIN, the customer may perform a transaction. The growth of ATM’s has rapidly grown in the public places around the globe. TELE BANKING: Undertaking a host of banking related services including financial transactions from the convenience of customers chosen place anywhere across the GLOBE and any time of date and night has now been made possible by introducing on-line Telebanking services. By dialing the given Telebanking number through a landline or a mobile from anywhere, the customer gets the following facilities ? Automatic balance voice out for the default account. ? Balance inquiry and transaction inquiry in all
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State Bank of India E-Banking 7 ? Inquiry of all term deposit account ? Statement of account by Fax, e-mail or ordinary mail. ? Cheque book request ? Stop payment which is on-line and instantaneous ? Transfer of funds with CBS which is automatic and instantaneous ? Utility Bill Payments SMART CARD: A smart card usually contains an embedded 8-bit microprocessor (a kind of computer chip). The microprocessor is under a contact pad on one side of the card. Think of the microprocessor as replacing the usual magnetic stripe present on a credit card or debit card. The microprocessor on the smart card is there for security. The host computer and card reader actually "talk" to the microprocessor. The microprocessor enforces access to the data on the card. The chips in these cards are capable of many kinds of transactions. For example, a person could make purchases from their credit account, debit account or from a stored account value that's reload able. The enhanced memory and processing capacity of the smart card is many times that of traditional magnetic-stripe cards and can accommodate several different applications on a single card. It can also hold identification information, which means no more shuffling through cards in the wallet to find the right one -- the Smart Card will be the only one needed. Smart cards can also be used with a smart card reader attachment to a personal computer to authenticate a user. Smart cards are much more popular in Europe than in the U.S. In Europe the health insurance and banking industries use smart cards extensively. Every German citizen has a smart card for health insurance. Even though smart cards have been around in their modern form for at least a decade, they are just starting to take off in the U.S. DEBIT CARD:
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State Bank of India E-Banking 7 Debit cards are also known as cheque cards. Debit cards look like credit cards or ATM(automated teller machine) cards, but operate like cash or a personal cheque. Debit cards are different from credit cards. While a credit card is a way to "pay later," a debit card is a way to "pay now." When you use a debit card, your money is quickly deducted from your checking or savings account. Debit cards are accepted at many locations, including grocery stores, retail stores, gasoline stations, and restaurants. . E-CHEQUE: ? An e-Cheque is the electronic version or representation of paper cheque. ? The Information and Legal Framework on the E-Cheque is the same as that of the paper cheques. ? It can now be used in place of paper cheques to do any and all remote An E-cheque works the same way a cheque does, the cheque writer "writes" the e-Cheque using one of many types of electronic devices and "gives" the e- Cheque to the payee electronically. The payee "deposits" the Electronic Cheque receives credit, and the payee's bank "clears" the e-Cheque to the paying bank. The paying bank validates the e-Cheque and then "charges" the cheque writer's account for the cheque. Pay-by-Phone Systems: Let you call your financial institution with instructions to pay certain bills or to transfer funds between accounts. You must have an agreement with your institution to make these transfers. Personal Computer Banking: Lets you handle many banking transactions using your personal computer. For example, you may use your computer to request transfers between accounts and pay bills electronically.
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State Bank of India E-Banking 7
Title of the study: “Services provided by SBI through E-Banking with reference to SBI Branches in Gadag city”. With reference to SBI Mulugund naka Branch Gadag. Statement of the problem: 1. To compare the trust level of traditional Banking with e-Banking service marketing (consumer’s point of view). 2. To find the effectiveness & Reliability of Electronic Banking. Objectives of the study: • • • • • To understand the concept of E-banking and importance to bank as well as customers. To get aware of various aspects of E-banking. To know the uses of e-Banking for customers. To build up various solutions if any, for drawbacks in net banking. To offer useful suggestions.
Scope of the study: ? ? ? ? ? The study includes the services provided by SBI branches in Gadag City. It investigates about all applications of online banking in SBI. It would help society to understand the usefulness of electronic banking. The study will also help us to get the knowledge about process of e-Banking and usefulness to banking industry. As the study contains the 360 degree information regarding SBI and its eBanking,
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State Bank of India E-Banking 7 ? Hence the study will lead to new ways to tackle the problems and the SWOT of SBI in respect of e- Banking.
Need for the study: This study is needed to find out the working of internet banking of SBI and its importance to customer as well as to bank 1. Organizing Educational Campaign to create Goodwill of company. 2. Services it effectively valuable to create place in the minds of customers. 3. Availability should be increased by using various service strategies. 4. Company should make service equal to better than competitive banks. 5. The report is helpful in knowing about the customers’ expectations about the Bank’s services. Research Methodology: Primary Data: In this research with a sample size of nearly 100 customer’s data will be available in form of questionnaire collected in terms of different questions influencing the use of internet banking. Internet Banking is considered as dependent on awareness among customers which will be studied with help of different independent variables. Secondary Data: Collection of information from different kinds of books the data of company what they maintained. Most of the data has been collected from Bank Assistant Mr. Nagaraj Adavi and by official website of State Bank of India.
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Limitations of the Internet Banking System
• The primary limitation of the study is based on quality and originality of secondary data taken via the official website of State Bank Of India and Reserve Bank of India. • • The study was concerned only to SBI branches in Gadag city. Time constraint: on the time availability is 10 weeks only it was not able to do the thorough study in the selected area.
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.
Statistics Do E-banking N Valid Missing 100 0
Do E-banking
Frequency Valid YES 100 Percent 100.0 Valid Percent 100.0 Cumulative Percent 100.0
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Do e-banking ? The percentage of E-Banking users are 100% ? Here I took customer information from Bank containing only of users of Internet Banking and e-banking users.
Statistics come to know about E-Banking N Valid Missing 100 0
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come to know about E-Banking
Frequency Valid Friends Family Relatives Bank officials Advertisements Total 39 7 16 20 18 100 Percent 39.0 7.0 16.0 20.0 18.0 100.0 Valid Percent 39.0 7.0 16.0 20.0 18.0 100.0 Cumulative Percent 39.0 46.0 62.0 82.0 100.0
Customers came to know about e-Banking ? 39 respondents responded as friends ? 20 respondents responded as Bank officials ? 18 respondents chosen by advertisements. ? As shown in figure more respondents came to know about E-Banking by friends. From Family were very few because it’s an electronic Banking and only educated and youngsters can able to do.
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Statistics feel E-Banking services necessary N Valid Missing
are 100 0
feel E-Banking services are necessary
Frequency Valid YES NO Total 73 27 100 Percent 73.0 27.0 100.0 Valid Percent 73.0 27.0 100.0 Cumulative Percent 73.0 100.0
Customers felt e-Banking services are necessary ? 73 respondents responsed e-banking is necessary to them. ? Remaining 27 respondents responsed that are not necessary. ? The figure shows that most of the customers felt e-Banking a necessity in their life.
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Statistics reasons for choosing SBI E-Banking Services N Valid Missing 130 0
reasons for choosing SBI E-Banking Services
Frequency Valid Convenience 24 Hour Access to accounts To Save Time Other's Total 63 34 17 16 130 Percent 48.5 26.2 13.1 12.3 100.0 Valid Percent 48.5 26.2 13.1 12.3 100.0 Cumulative Percent 48.5 74.6 87.7 100.0
Reasons for choosing SBI e-Banking Services ? 63 Respondents (48%) chosen SBI e-Banking because of its convenience, 34(26%) chose because of 24 hrs access to accounts, 17(13%) chose to save time and others chose for other reasons 16(12%). ? Here the frequency is 138 i.e. respondents are only 100 but they chosen multiple choices ? From the figure it can be said that nearly 50% of the customers chose e-Banking because of its convenience and 24 Hr access to their accounts.
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Statistics services Customers think are more user friendly N Valid Missing 100 0
services Customers think are more user friendly
Frequency Valid Internet Banking ATM services Telephone Banking Total 58 14 28 100 Percent 58.0 14.0 28.0 100.0 Valid Percent 58.0 14.0 28.0 100.0 Cumulative Percent 58.0 72.0 100.0
Customers who think services are more user friendly ? Out of 100 respondents 58 responded Internet Banking as more user friendly compare to other services. 28 respondents said telephone banking as user friendly & 14 said ATM as user friendly.
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? ? So as shown in figure internet banking users felt Internet Banking as more user friendly. In ATM’s they can’t do all the transactions as they do in other options.
Statistics Uses SBI online services N Valid Missing 100 0
Uses SBI online services
Frequency Valid Daily Monthly Weakly Never Total 17 43 24 16 100 Percent 17.0 43.0 24.0 16.0 100.0 Valid Percent 17.0 43.0 24.0 16.0 100.0 Cumulative Percent 17.0 60.0 84.0 100.0
Usage rate of SBI online services ? 43 respondents responded that they use SBI Online services once in a month, 24 responded once in a week.
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? Remaining user use online services once in a day.
Statistics Products& Services customers use regularly N Valid Missing 138 0
Products& Services customers use regularly
Frequency Valid account statement E-ticketing Checkbook request E-payment Transaction enquiry Total 62 32 12 16 16 138 Percent 44.9 23.2 8.7 11.6 11.6 100.0 Valid Percent 44.9 23.2 8.7 11.6 11.6 100.0 Cumulative Percent 44.9 68.1 76.8 88.4 100.0
Products& Services customers use regularly ? 62 respondents (44.9%) used e-Banking to check their account statement. 32 used for eTicketing (23%),12 used for cheque book request (8.7),16 used for e-Payment and transaction enquiry (11.6). ? From above it is clear that most of the customers use e-Banking to check their account statements and for e-Ticketing.
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? This is multiple option question so 100 respondents responded with multiple choices and the frequency became 138.
Statistics Make purchasing through E-Banking N Valid Missing 100 0
Make purchasing through E-Banking
Frequency Valid YES NO Total 48 52 100 Percent 48.0 52.0 100.0 Valid Percent 48.0 52.0 100.0 Cumulative Percent 48.0 100.0
Make purchasing through e-Banking ? ? ? Out of 100 respondents 52 responded that they did not make purchasing through eBanking. Only 48 respondents made purchasing through e-Banking. From the above graph more number of users did not make purchases through E-Banking.
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Statistics Made purchasing through Banking in the last 12months N Valid Missing
E100 0
Made purchasing through E-Banking in the last 12months
Frequency Valid None one time two to four times five to seven times eight to ten times over ten times Total 34 32 14 10 6 4 100 Percent 34.0 32.0 14.0 10.0 6.0 4.0 100.0 Valid Percent 34.0 32.0 14.0 10.0 6.0 4.0 100.0 Cumulative Percent 34.0 66.0 80.0 90.0 96.0 100.0
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Made purchasing through e-Banking in the last 12months ? 34 respondents response is none. 32respondents purchased one time in year. ? Only few of respondents purchased many times through e-Banking because they prefer manual banking more than e-Banking. ? From the above graph 50% of users do not make purchases through e-Banking.
Statistics Demat Account Bills Statement Payment 100 0 100 0 Other Value Added Services 100 0
Account Statement N Valid Missin g 100 0
Funds Transfer 100 0
Check Book 100 0
TDS Enquiry 100 0
Frequency Table Account Statement Frequency Valid Neutral Good Excellent Poor N/A Total 25 16 16 16 27 100 Percent 25.0 16.0 16.0 16.0 27.0 100.0 Valid Percent 25.0 16.0 16.0 16.0 27.0 100.0 Cumulative Percent 25.0 41.0 57.0 73.0 100.0
Funds Transfer Frequency Valid Neutral Good Excellent Poor N/A Total 20 40 24 5 11 100 Percent 20.0 40.0 24.0 5.0 11.0 100.0 Valid Percent 20.0 40.0 24.0 5.0 11.0 100.0 Cumulative Percent 20.0 60.0 84.0 89.0 100.0
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Demat Account Statement Frequency Valid Neutral Good Exellent N/A Total 13 31 17 39 100 Percent 13.0 31.0 17.0 39.0 100.0 Valid Percent 13.0 31.0 17.0 39.0 100.0 Cumulative Percent 13.0 44.0 61.0 100.0
Bills Payment Frequency Valid Neutral Good Excellent Poor N/A Total 16 23 30 6 25 100 Percent 16.0 23.0 30.0 6.0 25.0 100.0 Valid Percent 16.0 23.0 30.0 6.0 25.0 100.0 Cumulative Percent 16.0 39.0 69.0 75.0 100.0
Cheque Book Frequency Valid Neutral Good Excellent Poor N/A Total 20 41 12 7 20 100 Percent 20.0 41.0 12.0 7.0 20.0 100.0 Valid Percent 20.0 41.0 12.0 7.0 20.0 100.0 Cumulative Percent 20.0 61.0 73.0 80.0 100.0
TDS Enquiry Frequency Valid Neutral Good Excellent Poor N/A Total 32 31 6 6 25 100 Percent 32.0 31.0 6.0 6.0 25.0 100.0 Valid Percent 32.0 31.0 6.0 6.0 25.0 100.0 Cumulative Percent 32.0 63.0 69.0 75.0 100.0
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Other Value Added Services Frequency Valid Good Excellent Poor N/A Total 33 20 4 43 100 Percent 33.0 20.0 4.0 43.0 100.0 Valid Percent 33.0 20.0 4.0 43.0 100.0 Cumulative Percent 33.0 53.0 57.0 100.0
Bar Chart
?
Out of 100 respondents, 27 responded as N/A & 25 for neutral, remaining responded 16 for each.
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?
40 respondents responsed funds transfer is good and 24 were excellent here we can come to know that more number of respondents likes this service.
?
39 were responded Demat acc is not applicable and 31 are responded as it was good.
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State Bank of India E-Banking 7 ? By the above, number of users of Demat account statement users are less and remaining were Good.
?
Out of 100 respondents 30 were chosen to excellent 25 for good and 23 for neutral.
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?
41 responded checkbook services were good & 20 were for neutral.
?
32 & 31 respondents were responded to neutral & good respectively.
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?
43 were responded other value added services are not applicable.
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Overall, Banking N
Statistics satisfied with Valid Missing
SBI
E100 0
Overall, satisfied with SBI E-Banking
Frequency Valid Very Satisfied Unsatisfied Satisfied Neutral Total 18 9 59 14 100 Percent 18.0 9.0 59.0 14.0 100.0 Valid Percent 18.0 9.0 59.0 14.0 100.0 Cumulative Percent 18.0 27.0 86.0 100.0
Overall, satisfied with SBI e-Banking ? 59 respondents were satisfied with SBI E-Banking services and 18 were very satisfied.
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State Bank of India E-Banking 7
? ? 8 respondents chose unsatisfied because of some technical issues till not resolved. 15 are neutral.
Statistics Better rate and lower service charges N Valid Missing 100 0
24 Hrs Access 100 0
Privacy is maintained 100 0
Innovative Services 100 0
Security of transaction 100 0
Quick Services 100 0
Frequency Table Better rate and lower service charges Frequency Valid Not Important Very Important Less Important Total 22 46 32 100 Percent 22.0 46.0 32.0 100.0 Valid Percent 22.0 46.0 32.0 100.0 Cumulative Percent 22.0 68.0 100.0
24 Hrs Access Frequency Valid Not Important Very Important Less Important Total 15 51 34 100 Percent 15.0 51.0 34.0 100.0 Valid Percent 15.0 51.0 34.0 100.0 Cumulative Percent 15.0 66.0 100.0
Privacy is maintained Frequency Valid Not Important Very Important Less Important Total 15 63 22 100 Percent 15.0 63.0 22.0 100.0 Valid Percent 15.0 63.0 22.0 100.0 Cumulative Percent 15.0 78.0 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Innovative Services Frequency Valid Not Important Very Important Less Important Total 9 47 44 100 Percent 9.0 47.0 44.0 100.0 Valid Percent 9.0 47.0 44.0 100.0 Cumulative Percent 9.0 56.0 100.0
Security of transaction Frequency Valid Not Important Very Important Less Important Total 13 81 6 100 Percent 13.0 81.0 6.0 100.0 Valid Percent 13.0 81.0 6.0 100.0 Cumulative Percent 13.0 94.0 100.0
Quick Services Frequency Valid Not Important Very Important Less Important Total 15 62 23 100 Percent 15.0 62.0 23.0 100.0 Valid Percent 15.0 62.0 23.0 100.0 Cumulative Percent 15.0 77.0 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Pie Chart
?
46 respondents chose it’s very important 32 for less important.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 ? ? 51 respondents were responded 24 hrs access is very important and 34 for less important. By this graph we come to know that it’s very important.
?
More than 60 respondents responded privacy is very important.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
?
47 were responded Innovative services very important.
?
81respondents were responded security transactions was very important to them.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 ? Out of 100 respondents, 62 were responded quick services are very important to them.
Factors that customers feel important: ? 46 were respondents feel it’s very important 32 for less important. ? 51 were responded 24 hrs access is very important and 34 for less important. ? By this graph we come to know that it’s very important. ? More than 60 respondents responded privacy is very important. ? 47 were responded Innovative services are very important. ? 81 were responded security transactions are very important to them. ? Out of 100 respondents, 62 were responded quick services are very important to them
Statistics Still visits the Bank since after having started using SBI E-Banking N Valid Missing 100 0
Still visits the Bank since after having started using SBI EBanking
Frequency Valid YES NO Total 86 14 100 Percent 86.0 14.0 100.0 Valid Percent 86.0 14.0 100.0 Cumulative Percent 86.0 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Still visits the Bank since after having started using SBI e-Banking ? 86 respondents that they still visiting Bank after having started using SBI E-Banking. ? More number of customers visits Banks after having e-Banking because of they can’t do all the transactions those are physical and some of the information can be discussed with Bank employees directly.
Statistics Reasons to visit your Bank branch (single most important reason) N Valid Missing 100 0
Reasons to visit your Bank branch (single most important reason)
Frequency Valid To make deposite To get advice for investment options To Enquire About Balance To withdraw Cash Other Total 37 10 7 39 7 100 Percent 37.0 10.0 7.0 39.0 7.0 100.0 Valid Percent 37.0 10.0 7.0 39.0 7.0 100.0 Cumulative Percent 37.0 47.0 54.0 93.0 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
?
39 were responded that to withdraw cash & 37 for to make deposits.
Statistics Uses an Automated Machine(ATM) Per Month N Valid Missing
Teller 100 0
Uses an Automated Teller Machine(ATM) Per Month
Frequency Valid 1 time only 2 to 5 times 6 to 8 times 9 to 12 times Total 33 47 14 6 100 Percent 33.0 47.0 14.0 6.0 100.0 Valid Percent 33.0 47.0 14.0 6.0 100.0 Cumulative Percent 33.0 80.0 94.0 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
1) Uses an Automated Teller Machine (ATM) Per Month
?
47 were responded that they use ATM 2to 5 times per month & 33 for 1time only
Findings & Conclusions: Findings
? Maximum number of customers came to know about efrom their friends. ? More number of respondents felt e-Banking services as a necessity for their busy life and the reasons behind choosing e-Banking was- its convenience & 24/7 access. The other reason was that it saves their time. Banking services
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 ? More number of respondents felt internet Banking services as more user friendly than other services. ? Only few customers used electronic services for e-Shopping and remaining customers preferred traditional system. ? Overall, customers felt satisfied with SBI e-Banking services. ? Most of the customers used ATM services 2 to 5 times in a month.
Conclusions:
? Skilled employees are less with reference to electronic banking than manual banking. ? Decision making will be in the hands of top management only. ? The Bank is serving customers with fully automated system. ? The number of Electronic banking users is rapidly increasing.
Suggestions:
? Provide more training to the employees and customers about the handling of the electronic banking procedures. ? Reduce the complex procedures in the electronic Banking.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 ? Quick response to customers should be given while providing services through customer care services. ? Technology & Security related issues should be handled very carefully to retain customers.
5) Analysis of Financial statement: Balance Sheet of State Bank of India Mar '12 12 mths Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money
------------------- in Rs. Cr. ------------------Mar '11 12 mths Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths
671.04 671.04 0.00
635.00 635.00 0.00
634.88 634.88 0.00
634.88 634.88 0.00
631.47 631.47 0.00
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 0.00 83,280.16 0.00 83,951.20 1,043,647.36 127,005.57 1,170,652.93 80,915.09 1,335,519.22 Mar '12 12 mths Assets Cash & Balances with RBI 54,075.94 Balance with Banks, Money at 43,087.23 Call Advances 867,578.89 Investments 312,197.61 Gross Block 14,792.33 Accumulated Depreciation 9,658.46 Net Block 5,133.87 Capital Work In Progress 332.68 Other Assets 53,113.02 Total Assets 1,335,519.24 Contingent Liabilities Bills for collection Book Value (Rs) 698,064.74 201,500.44 1,251.05 0.00 64,351.04 0.00 64,986.04 933,932.81 119,568.96 1,053,501.77 105,248.39 1,223,736.20 Mar '11 12 mths 94,395.50 28,478.65 756,719.45 295,600.57 13,189.28 8,757.33 4,431.95 332.23 43,777.85 1,223,736.20 585,294.50 205,092.29 1,023.40 0.00 65,314.32 0.00 65,949.20 804,116.23 103,011.60 907,127.83 80,336.70 1,053,413.73 Mar '10 12 mths 61,290.87 34,892.98 631,914.15 285,790.07 11,831.63 7,713.90 4,117.73 295.18 35,112.76 1,053,413.74 429,917.37 166,449.04 1,038.76 0.00 57,312.82 0.00 57,947.70 742,073.13 53,713.68 795,786.81 110,697.57 964,432.08 Mar '09 12 mths 55,546.17 48,857.63 542,503.20 275,953.96 10,403.06 6,828.65 3,574.41 263.44 37,733.27 964,432.08 614,603.47 152,964.06 912.73 0.00 48,401.19 0.00 49,032.66 537,403.94 51,727.41 589,131.35 83,362.30 721,526.31 Mar '08 12 mths 51,534.62 15,931.72 416,768.20 189,501.27 8,988.35 5,849.13 3,139.22 234.26 44,417.03 721,526.32 736,087.59 93,652.89 776.48
QUESTIONNAIRE
Dear Sir/ Madam, I am Mr. Sudarshan Halakeri, a final year MBA student of REC.HULKOTI, I am conducting a survey on “Services provided by SBI through E-Banking with reference to SBI branches in GADAG city”. Please provide relevant information by filling this questionnaire to
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 make my survey more comprehensive. All details given by you will be kept confidential. Personal details: NAME: ………………………………….. AGE: .………………………………….. OCCUPATION: …………………………………... E-MAIL ID : …………………………………… MOB. NO. : ………………………………….. ADDRESS: ………………………………….. ………………………………….. 1) Do you do E-Banking? YES NO
2) How did u come to know about E-Banking? Friends Relatives Advertisement 3) Do you feel E-Banking services are necessary? YES NO Reason …………………………………………………………….. ……………………………………………………………………... 4) What are the reasons for choosing SBI E-Banking services? Please select all that apply Convenience 24Hour access to accounts To save time other’s Family Bank officials
5) Which of the following services you think, are more user friendly?
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 Internet Banking: Telephone Banking: 6) How often do you use SBI online services? Daily Weekly Monthly Never ATM Services:
7) Which online products& Services do you use regularly? Please select all that apply E-Ticketing Cheque Book Request Account Statement Transaction Enquiry Demat Account Statement 8)Do Yes you make purchasing Demand Draft SBI E-Tax E-Payment Third Party Transfer
through No
E-Banking?
9) Approximately how many times you have made purchasing through E-Banking in the last 12 months? 1 time 5 to 7 times Over 10 times 2 to 4 times 8 to 10 times
10) Please rate the following online Features of SBI +2 +1 -2
0
-1
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 Excellent Good Poor N/A Account Statement Funds Transfer Demat Account statement Bill Payment Cheque book request TDS Enquiry Other Value Added services 11) Overall, how satisfied you are with SBI E-banking? Very satisfied Satisfied Unsatisfied Very unsatisfied Neutral
Neutral 12) For your choice of E- banking, which of the following factors do you feel important? -1 0 +1 Less Not Very Important Important Important Better rate and lower service charge 24 hours access Privacy is maintained Innovative services
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 Security of Transaction Quick service 13) Do you still visit the bank since after having started using SBI Ebanking? YES NO
If ‘YES’ why? …………………………………………………………………………………………… ………………………………………………………………………………… 14) What is the main reason to visit your bank branch? (Please choose the single most important reason) To make deposit To get advice for investment options To inquire about balance To withdraw cash Other 15) How frequently do you use an Automated Teller Machine (ATM) per month? 1 time only 6 to 8 times Over 12 times 16) If you have any other comments or suggestions please share with us ? …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… ……………………………………………………………… 2 to 5 times 9 to 12 times
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 Date: Signature
Thank You
Bibliography Books :• SBI Training guide for internet banking
Websites:• • • • www.statebankofindia.com www.onlinesbi.com www.weikipedia.com www.google.com
Dept. of MBA
Rural Engineering College
doc_834901669.doc
E-Banking MBA marketing VTU project for all of my dear juniors. My humble request is that to keep my work report for ur reference and plz don't copy and past thank you.
ALL THE BEST
State Bank of India E-Banking 7
VISVESVARAYA TECHNOLOGICAL UNIVERSITY
BELGAUM - 590 018
Summer Project Report on
“SERVICES PROVIDED BY SBI THROUGH E-BANKING WITH REFERENCE TO SBI BRANCHES IN GADAG CITY”
UNDERTAKEN AT
SBI MULGUND NAKA BRANCH, GADAG
Submitted in the partial fulfillment of the requirement for the Award of the Master of Business Administration
Submitted by SUDARSHAN A HALAKERI MBA 4th Semester U.S. NO. 2RH11MBA16
Under the Guidance of
EXTERNAL GUIDE
MR. NAGARAJ ADAVI ASSISTANT
INTERNAL GUIDE
PROF D.H.KUSUGAL MBA FACULTY
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
MASTER OF BUSINESS ADMINISTRATION RURAL ENGINEERING COLLEGE, HULKOTI RTES’S REC, HULKOTI
VISVESVARAYA TECHNOLOGICAL UNIVERSITY
BELGAUM
MASTER OF BUSINESS ADMINISTRATION
This is to Certify that the Summer Project Report carried out by Mr. SUDARSHAN A HALAKERI U.S.No. 2RH11MBA16, a bonafide student of RTE’S SOCIETY RURAL ENGINEERING COLLEGE VTU Center HULKOTI, in partial fulfillment for the award of Master of Business Administration of the Visvesvaraya Technological University, Belgaum during the year 2012-13. It is certified that all correction / suggestions indicated for internal assessment have been incorporated in the Report. The project report has been approved as it satisfies the academic requirements in respect of project work prescribed for the said Degree.
Certificate
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Signature of the Guide External Viva Name of the examiners with Date
Visvesvaraya Technological University, Belguam
Signature
A PROJECT REPORT ON SERVICES PROVIDED BY SBI THROGH E-BANKING WITH REFERENCE TO SBI BRANCHES IN GADAG CITY. At The State Bank of India Mulgund naka Branch Gadag. Submitted in the partial fulfillment of the requirements for the Award of the Degree of MASTER OF BUSINESS ADMINISTRATION.
Under the Guidance of Internal Guide Prof. D.H.Kusugal External Guide Mr. Nagaraj Adavi
Submitted by Mr. Sudarshan A Halakeri USN No. : 2RH11MBA16 MBA IV Semester
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
DEPARTMENT OF MBA RURAL ENGINEERING COLLEGE HULKOTI – 582 205 2012-201
DECLARATION
I am Mr Sudarshan A Halakeri MBA 4th Semester Student of Rural Engineering College Hulkoti, Department of MBA, hereby declare that the project work entitled “Services provided by SBI through E-Banking with reference to SBI Branches in Gadag City”. Is submitted to VTU in partial fulfillment for the requirement for the award of the degree of “Master of Business Administration (MBA)”. The findings and suggestions of this project report are based on the information collected by me during the study period.
To the best of my knowledge and belief, the matter presented in this report has not been submitted previously in part of or full to any universities for the award of any degree or diplomas.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Place : Hulkoti Date :
Sudarshan A Halakeri
ACKNOWLEDGEMENT
“The completion and drafting is a solitary task but which has been made smoother with the help of many”. It human bounded duty to acknowledge those personalities who contribute immensely to their effort and guide me in the right direction”. It gives me immense pleasure in submitting this project report on “Services provided by SBI through E-Banking with reference to SBI Branches in Gadag City”. In partial fulfillment of the requirement for the MBA course awarded Visveswaraya Technological University, Belguam for the academic year 2012-13. I heartily express my thanks to my family members, friends and relatives for their valuable support in completion of this project successfully. I, sincerely express my thanks to Manager of SBI Mulugund naka Branch Mr. A A Siddiqui. For their permission and guidance in my project. I am thankful to my project Guide Prof. D.H. Kusugal, for her support, timely guidance and valuable suggestions. He provided the required information and inspired me immensely to execute this project report successfully.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 I wish to place on the record my deep sense of gratitude to our beloved H.O.D Miss. Kavita Acchalli For her constant encouragement, valuable suggestions throughout this project and making this project more meaningful and worthy. I am very much grateful to our principal Dr. V. M. Patil for his kind co-operation, who helped in development of this project. Finally, I wish to convey my sincere thanks to all those who have directly or indirectly helped me during the course of the study. Place : HULKOTI Date : Mr. SUDARSHAN HALAKERI MBA 4th semester.
PART - A INDUSTRY PROFILE 1-3 COMPANY PROFILE 4-6 Background and inception of the company 7-10 Nature of the business carried 10 Vision, Mission and Quality Policy 10 Products/ Services Profile 11 Area of Operation – Global / National / Regional 12 Ownership Pattern 12 Competitors Information 12 Infrastructural Facilities 12 Achievement/Award if any 13 Work flow model (End to End) 13-14 Future growth and prospects. 14 Mckensy’s 7S frame work with special reference to organization under study 15-18 SWOT analysis 19 Analysis of Financial statement. Learning experience 20
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 PART - B 1. General Introduction Statement of the problem Objectives of the study Scope of the Study Methodology Limitations of the study Analysis, Design, Interpretation findings suggestions Conclusions and Recommendations. Annexure Bibliography
21 22 22 23 37 25 26-38 39 42-51 52
Industry Profile:
A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank is the connection between customers that have capital deficits and customers with capital surpluses. Due to their influence within a financial system and an economy, banks are generally highly regulated in most countries. Most banks operate under a system known as fractional reserve banking where they hold only a small reserve of the funds deposited and lend out the rest for profit. They are generally subject to minimum capital requirements which are based on an international set of capital standards, known as the Basel Accords. The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472. It is followed by Berenberg Bank of Hamburg (1590) and Sveriges Riksbank of Sweden (1668). Banking in its modern sense evolved in rich cities of Renaissance Italy, such
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 as Florence, Venice and Genoa. In the history of banking, a number of banking dynasties —among them
Origin of the word:
The word bank was borrowed in Middle English from Middle French banque, from Old Italian banca, from Old High German banc, bank "bench, counter". Benches were used as desks or exchange counters during the Renaissance by Florentine bankers, who used to make their transactions atop desks covered by green tablecloths. Another possible origin of the word is from the Sanskrit words (???) 'byaya' (expense) and 'onka' (calculation) = byaya-onka. This word still survives in Bangla, which is one of Sanskrit's child languages. ???? + ?? = ???? . Such expense calculations were the biggest part of mathematical treatises written by Indian mathematicians as early as 500 B.C. Banking in India in the modern sense originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1770; both are now defunct. The oldest bank still in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955.
History: In ancient India there is evidence of loans from the Vedic period (beginning
1750 BC). Later during the Maurya dynasty (321 to 185 BC), an instrument called adesha was in use, which was an order on a banker desiring him to pay the money of the note to
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 a third person, which corresponds to the definition of a bill of exchange as we understand it today. During the Buddhist period, there was considerable use of these instruments. Merchants in large towns gave letters of credit to one another.
Colonial era:
During the colonial era merchants in Calcutta established the Union Bank in 1839, but it failed in 1840 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India, it was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. Foreign banks too started to appear, particularly in Calcutta, in the 1860s. The Comptoir d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondicherry, then a French possession, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The favor of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalized banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking". During the First World War (1914–1918) through the end of the Second World War (1939–1945), and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table:
Years
Number of banks Authorised capital Paid-up Capital that failed (Rs. Lakhs) 274 710 56 231 76 209 (Rs. Lakhs) 35 109 5 4 25 1
1913 12 1914 42 1915 11 1916 13 1917 9 1918 7
Post-Independence:
The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. The Reserve Bank of India, India's central banking authority, was established in April 1935, but was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b). In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India". The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors. Nationalization in the 1960s
Banks Nationalization in India: Newspaper Clipping, Times of India, July 20, 1969 Despite the provisions, control and regulations of Reserve Bank of India, banks in India except the State Bank of India or SBI, continued to be owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry. Indira Gandhi, then Prime Minister of India, expressed the intention of the Government of India in the annual conference of the All India Congress Meeting in a
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 paper entitled "Stray thoughts on Bank Nationalization." The meeting received the paper with enthusiasm.
Liberalization in the 1990s: In the early 1990s, the then Narasimha
Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, UTI Bank (since renamed Axis Bank),ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.
Structure of banking sector in India:
Ministry of Finance RBI Scheduled Banks
Commercial Banks
Cooperative Banks
Public sector Banks
Private sector Banks
Foreign Banks
Regional Rural Banks
Urban Cooperative
State Cooperative
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Reserve Bank of India:
The RBI is India's central bank. The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. RBI acts as a banker to the Government and Banks. The Central Bank maintains record of Government revenue and expenditure under various heads. It maintains deposit accounts of all other banks and advances money to other banks, when needed. Another important function of the Central Bank is the issuance of currency notes, regulating their circulation in the country by different methods.
Scheduled Banks:
All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are scheduled banks. These banks comprise Scheduled Commercial Banks and Scheduled Cooperative Banks. The type of banks comes under these Scheduled Commercial Banks and Scheduled Cooperative Banks can be seen in the above figure. All most all banks are Scheduled banks in India.
Commercial Banks:
Commercial banks may be defined as, any banking organization that deals with the deposits and loans of business organizations. Commercial banks issue bank checks and drafts, as well as accept money on term deposits. Commercial banks also act as moneylenders, by way of installment loans and overdrafts. Commercial banks also allow
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 for a variety of deposit accounts, such as checking, savings, and time deposit. These institutions are run to make a profit and owned by a group of individuals.
Public Sector Banks:
These are banks where majority stake is held by the Government of India. Examples of public sector banks are: SBI, Bank of India, Canara Bank, etc.
Private Sector Banks:
These are banks majority of share capital of the bank is held by private individuals. These banks are registered as companies with limited liability. Examples of private sector banks are: ICICI Bank, Axis bank, HDFC, etc.
Foreign Banks:
These banks are registered and have their headquarters in a foreign country but operate their branches in our country. Examples of foreign banks in India are: HSBC, Citibank, Standard Chartered Bank, etc.
Regional Rural Banks:
Regional Rural Banks were established under the provisions of an Ordinance promulgated on the 26th September 1975 and the RRB Act, 1976 with an objective to ensure sufficient institutional credit for agriculture and other rural sectors. The area of operation of RRBs is limited to the area as notified by GoI covering one or more districts in the State. RRBs are jointly owned by GoI, the concerned State Government and Sponsor Banks (27 scheduled commercial banks and one State Cooperative Bank); the issued capital of a RRB is shared by the owners in the proportion of 50%, 15% and 35% respectively. Prathama bank is the first Regional Rural Bank in India located in the city Moradabad in Uttar Pradesh.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Co-operative Banks:
A co-operative bank is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank. Co-operative banks are often created by persons belonging to the same local or professional community or sharing a common interest. Co-operative banks generally provide their members with a wide range of banking and financial services (loans, deposits, banking accounts, etc). They provide limited banking products and are specialists in agriculture-related products. Cooperative banks are the primary financiers of agricultural activities, some small-scale industries and self-employed workers. Co-operative banks function on the basis of "no-profit no-loss". Anyonya Co-operative Bank Limited (ACBL) is the first co-operative bank in India located in the city of Vadodara in Gujarat.
Company Profile:
Bank Name: Branch Name: Branch Address: Dept. of MBA
State Bank of India MULGUND NAKA GADAG Code: 9249 MULGUND ROAD Rural Engineering College
State Bank of India E-Banking 7
City: State: Phone: Micr Code: IFSC Code: RTGS: Core banking: Website: Internet Banking Site
GADAG Karnataka (08372)38623 582002004 SBIN0009249 YES Available http://www.sbi.co.in https://www.onlinesbi.com
A) Background and Inception:
State Bank of India (SBI) is banking and financial services based company in India. It is a state-owned corporation with its headquarters in Mumbai, Maharashtra. As of March 2012, it had assets of US$360 billion and 14,119 branches, including 173 foreign offices in 37 countries across the globe making it the largest banking and financial services company in India. State Bank of India (SBI) is the nation's largest and oldest bank. Tracing its roots back some 200 years to the British East India Company (and initially established as the Bank of Calcutta in 1806) also owns majority stakes in five associate banks. The bank has
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 other units devoted to capital markets, fund management, factoring and commercial services, credit cards, insurance, and brokerage services. The Reserve Bank of India owns about 60% of State Bank of India.
History:
The roots of the State Bank of India lie in the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as joint stock companies and were the result of the royal charters (a formal document issued by a British monarch as letters patent, granting a right or power to an individual or a body corporate). These three banks received the exclusive right to issue paper currency in 1861 with the Paper Currency Act, a right they retained until the formation of the Reserve Bank of India. The Presidency banks amalgamated on 27 January 1921, and the re-organized banking entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock company. Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 30 April 1955, the Imperial Bank of India became the State Bank of India. The government of India recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority. In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which made eight state banks associates of SBI.
Current Board of Directors:
After the end of Om. Prakash Bhatt's reign as SBI chairman on 31 March 2011, the post was taken over by Pratip Chaudhuri, who is the former deputy managing director of the Dept. of MBA Rural Engineering College
State Bank of India E-Banking 7 international division of SBI. As of 4 August 2011, there are twelve members in the SBI board of directors.
Associate Banks:
SBI has five associate banks; all use the same logo of a blue circle and all the associates use the "State Bank of" name, followed by the regional headquarters: State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore
B) Nature of the business carried:
Commercial banks are an organization which normally performs certain financial transactions. It performs the twin task of accepting deposits from members of public and make advances to needy and worthy people from the society. When banks accept deposits its liabilities increase and it becomes a debtor, but when it makes advances its assets increases and it becomes a creditor. Banking transactions are socially and legally approved. It is responsible in maintaining the deposits of its account holder
C) Vision, Mission and Quality Policy:
Vision statement: My SBI My Customer first. Dept. of MBA Rural Engineering College
State Bank of India E-Banking 7 My SBI: first in customer satisfaction Mission statement: We will be prompt, polite and proactive with our customers. We will speak the language of young India. We will create products and services that help our customers achieve their goals. We will go beyond the call of duty to make our customers feel valued. We will be of service even in the remotest part of our country. We will offer excellence in services to those abroad as much as we do to those in India. We will imbibe state-of-the-art technology to drive excellence. Values: We will always be honest, transparent and ethical. We will respect our customers and fellow associates. We will be knowledge driven. We will learn and we will share our learning. We will never take the easy way out. We will do everything we can to contribute to the community we work in. We will nurture pride in India.
D) Products and Services Profile:
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State Bank of India E-Banking 7 SBI offers Corporate and Retail Internet Banking Products and Other Value Added Services Products Khata Khata Plus Saral Vyapaar Vistaar Electronic Vendor Finance Electronic Dealer Finance Direct Debit E-Collection Services Access to multiple users Account view / Statement Funds Transfer Third party funds transfer (RTGS/NEFT) Demand Draft request Utility Bill Payment Bulk transaction through file upload Direct and indirect tax payment SMS/Email alerts
Products:
Khata: Derive an advantage over others; advantage of accessing your accounts 24 X 7. Khata enables you to access your account information anywhere anytime. You will have the following advantages: • • • Enquiry rights on the accounts Facility to view account information and download account statement of your account. Suitable for single user operated accounts.
Khata Plus:
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State Bank of India E-Banking 7 Derive an added advantage over others by getting multiple accesses to your accounts 24 X 7. Khata Plus enables multiple people in your business to access your account information anywhere anytime. Saral: Single user operated, user friendly and simple. Transaction rights on the accounts. Facility to view account information and download account statement of your account. Facility to transfer your funds to: SBI accounts(other than your own accounts) Consolidated limit per day Rs.5.00 Lacs Other Bank Accounts (RTGS/NEFT) --- Consolidated limit per day Rs.5.00 Lacs Merchant Payments --- Consolidated limit per day Rs.5.00 Lacs Vyapaar: Exercise the privilege to transact over the internet, make payments the cyber way, conduct business in style. Equip with Vyapaar and facilitate your business needs. Vistaar: Freedom to operate your business at any geographical location from wherever you desire. Freedom to take urgent financial decisions from any situation. Freedom to empower your people to conduct business the modern way yet within the framework laid down by you. Freedom from branch dependency. Electronic Vendor Finance: Electronic Vendor Financing Scheme (e-VFS ) and Electronic Dealer Financing Scheme (e-DFS) State Bank of India introduces Supply Chain Finance by leveraging its state of the art technology for the convenience of the customers. SCF will strengthen the relationship of SBI with the Corporate World by financing their supply chain partners.
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Rural Engineering College
State Bank of India E-Banking 7 Electronic Dealer Finance: Electronic Vendor Financing Scheme (e-VFS ) and Electronic Dealer Financing Scheme (e-DFS) State Bank of India introduces Supply Chain Finance by leveraging its state of the art technology for the convenience of the customers. SCF will strengthen the relationship of SBI with the Corporate World by financing their supply chain partners. Direct Debit: Direct debit is a facility given to Corporate (Suppliers) having Vistaar facility and supplying goods to their Dealers (Dealers need not be availing INB facility) whereby the Corporate (Supplier) can directly debit the accounts of their dealers maintained at SBI branches at different locations. In this facility the Supplier and the Bank will enter in to a bipartite agreement, based on which, the Dealer will provide a mandate to the supplier for debiting his account up to a specific limit. Services: Account view / Statement: OnlineSBI can generate an account statement for a date range for any of your accounts. The statement includes transaction details, opening, closing and accumulated balance in the account. Funds Transfer: • • • • • • You can now avail a bouquet of funds transfer services through Internet banking Transfer funds within your own accounts Transfer funds to third party account held in the same bank Make an Inter bank funds transfer to any account held in any bank including State Bank Group Pay any VISA credit card bill Transfer funds to religious and charitable institutions
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State Bank of India E-Banking 7 • • • Record standing instructions to transfer a fixed amount at a scheduled frequency for a period not exceeding one year Transfer funds to NRE PIS accounts to facilitate online trading Third party funds transfer (RTGS/NEFT)
Inter Bank Transfer: enables electronic transfer of funds from the account of the remitter in one Bank to the account of the beneficiary maintained with any other Bank branch. There are two systems of Inter Bank Transfer - RTGS and NEFT. Both these systems are maintained by Reserve Bank of India. Demand Draft request: OnlineSBI enables customers to issue demand drafts online. Customer has the option to collect the draft from branch or give his mandate to dispatch the draft by courier to the beneficiary. Bill Payment: Many categories of Billers are available for payment using OnlineSBI. For e.g. Credit Card, Insurance, Telephone Payment etc. Utility Bill Payment: SBI e-PAY - A simple and convenient service for receiving and paying your bills online • • • • No more late payments No more queues No more hassles of depositing cheques Direct and indirect tax payment
Direct Taxes (OLTAS):
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State Bank of India E-Banking 7 OnlineSBI provides the facility to pay direct taxes online which includes payment of TDS, Income Tax, Corporation Tax, Security Transactions Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax, Gift Tax, Cash Transaction Tax and Fringe Benefits Tax. As a tax payer, you need to have a bank account enabled for net banking facility with transaction rights in anyone of our branches. Indirect Taxes (CBEC): OnlineSBI provides the facility to pay Indirect taxes online. As a tax payer, you need to have a bank account enabled for net banking facility with transaction rights in anyone of our branches. Please find below the procedure for making the payment. Indirect Taxes (Customs): To pay Indirect Taxes (Customs) through the internet:
Offline Products/Services:
PRODUCTS/SERVICE PROFILE SBI Term Deposits SBI Recurring Deposits SBI Housing Loan SBI Car Loan SBI Educational Loan SBI Personal Loan SBI Current account SBI Savings bank account Special term deposits SBI Loan For Pensioners Loan Against Mortgage Of Property Loan Against Shares & Debentures Rent Plus Scheme Medi-Plus Scheme Rates Of Interest Savings plus account Basic banking ‘no frills account’ Premium savings account
Multi option deposits scheme Demat account
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PERSONAL BANKING- State bank of India offers a wide range of services in the Personal Banking Segment which are indexed here.
GOLD BANKING Retail sale of gold coin FAQ-Gold deposits scheme Gold deposits scheme(GDS) Sale of gold and gold metal loans
SERVICES Listed on the left are Services, SBI offers to its customers. • • • • • DOMESTIC TREASURY BROKING SERVICES REVISED SERVICE CHARGES ATM SERVICES INTERNET BANKING
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State Bank of India E-Banking 7 • • • • • • • STATE BANK MOBICASH E-PAY E-RAIL RBIEFT SAFE DEPOSIT LOCKER MICR CODES FOREIGN INWARD REMITTANCES
MOBILE BANKING
State Bank FreedoM – Your Mobile Your Bank Away from home, balance enquiries can be made and/or money sent to the loved ones or bills can be paid anytime 24x7!!! That is what State Bank FreedoM offers -convenient, simple, secure, anytime and anywhere banking. 1. Mobile Banking Service over Application/ Wireless Application Protocol (WAP) The service is available on java enabled /Android mobile phones (with or without GPRS) where the user is required to download the application on to the mobile handset. The service can also be availed via WAP on all phones (java/non java) with GPRS connection. The following functionalities are available:
• • • • • • •
Funds transfer (within and outside the bank) Interbank Mobile Payment Services (IMPS): Enquiry services (Balance enquiry/ Mini statement) Cheque book request Demat Enquiry Service Bill Payment (Utility bills, credit cards, Insurance premium), Donations, Subscriptions Mobile Top up
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•
M Commerce (Top up of Tatasky, BigTV, SunDirect, DishTV, DigitalTV and Videocon d2h connections, SBI life insurance premium)
2. Mobile Banking Service over SMS: The service is available on all phones (java/non java) with/without GPRS connection. No need to download the application. Ordinary SMS charges are applicable. The following functionalities are available: • • • • • • Enquiry Services (Balance Enquiry/Mini Statement) Mobile Top up DTH Top up/ recharge IMPS- Mobile to Mobile Transfer Change MPIN As a matter of abundant precaution, Customers are requested to delete all the messages sent to the number 9223440000, once the response for their request has been received.
3. Mobile Banking Service over USSD (Unstructured Supplementary Service Data) The service is available on all phones (java/non java) with/without GPRS connection. No need to download the application. The following functionalities are available: • • • Enquiry Services (Balance Enquiry/Mini Statement) Mobile Top up Funds Transfer (within Bank) ATM SERVICES
STATE BANK NETWORKED ATM SERVICES State Bank offers you the convenience of over 26,000 ATMs in India, the largest network in the country and continuing to expand fast! This means that you can transact free of cost at the ATMs of State Bank Group (This includes the ATMs of State Bank of India as well as the Associate Banks - namely, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, and
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State Bank of Travancore) and wholly owned subsidiary viz. SBI Commercial and International Bank Ltd., using the State Bank ATM-cum-Debit (Cash Plus) card.
KINDS OF CARDS ACCEPTED AT STATE BANK ATMs
Besides all cards of State Bank of India, State Bank ATM-Cum-Debit Card and State Bank International ATM-Cum-Debit Cards following cards are also accepted at State Bank ATMs: 1) State Bank Credit Card 2) Cards issued by other banks displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos 3) All Debit/ Credit Cards issued by any bank outside India displaying Maestro, Master Card, Cirrus, VISA and VISA Electron logos
State Bank ATM-cum-Debit (State Bank Cash plus) Card:
India's largest bank is proud to offer you unparalleled convenience viz. State Bank ATM-cum-Debit (Cash Plus) card. With this card, there is no need to carry cash in your wallet. You can now withdraw cash and make purchases anytime you wish to with your ATM-cum-Debit Card. Get an ATM-cum-Debit card with which you can transact for FREE at any of over 26,000 ATMs of State Bank Group within our country.
E) Area of Operation –
The business operations of SBI can be broadly classified into the key income generating areas such as... • • • National Banking International Banking Corporate Banking Rural Engineering College
Dept. of MBA
State Bank of India E-Banking 7 • • Treasury operations Associates and subsidiaries.
F) Ownership Pattern:
Holder's Name Promoters Financial Institutions Foreign Institutions General Public NBanks Mutual Funds Other Companies Foreign NRI Others Central Govt Foreign Ocb Foreign Collaborators Foreign Industries No of Shares 413252443 79444729 65020546 39345464 35857120 19510691 1039352 824231 195151 32310 415 296 % Share Holding 61.58% 11.84% 9.69% 5.86% 5.34% 2.91% 0.15% 0.12% 0.03% 0.00% 0.00% 0.00%
G) Competitors Information:
Top performing Public & Private sector Banks: Some of the major competitors for SBI in the banking sector in Gadag city are • • • ICICI Bank HDFC Bank Axis Bank Rural Engineering College
Dept. of MBA
State Bank of India E-Banking 7 • Syndicate Bank.
However in terms of average market share, SBI is by far the largest player in the market.
H) Infrastructural Facilities:
The Bank is well equipped with good quality furniture’s, design, interior decoration and air condition enabled building, drinking water facility and good ambiance. The CC cameras have been introduced for customer’s safety. The layout of the building enables workflow easier for customers and good seating arrangement. the computer systems are well configured and providing quick services to the customers and a large build-up area about 4000sq.ft. area with one ATM machine within the building located at Mulgund Road Gadag.
I) Recent awards and recognitions:
• • • • • • • • • Best Online Banking Award, Best Customer Initiative Award & Best Risk Management Award (Runner Up) by IBA Banking Technology Awards 2010 The Bank of the year 2009, India (won the second year in a row) by The Banker Magazine Best Bank – Large and Most Socially Responsible Bank by the Business Bank Awards 2009 Best Bank 2009 by Business India The Most Trusted Brand 2009 by The Economic Times Most Preferred Bank & Most preferred Home loan provider by CNBC Visionaries of Financial Inclusion By FINO Technology Bank of the Year by IBA Banking Technology Awards SKOCH Award 2010 for Virtual corporation Category for its e-payment solution The Brand Trust Report 11th most trusted brand in Hindustan.
J) Work flow model:
For Deposits Customers Deposit Dept. of MBA Rural Engineering College
State Bank of India E-Banking 7
Application review and Documentation Processing Cash, Cheque and Draft Accounts For Loans: Work done Customers Deposit Specific Requirements Filling of Application Application review Decision Reject Document Loan disbursement Repayment of Interest
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K) Future growth and prospects:
To study of this topic will help to get the knowledge about process of internet banking and usefulness to banking industry. As of study contains the 360 degree information regarding SBI and its internet banking. Hence the study will lead to new ways to tackle the problems and the SWOC of SBI in respect of internet banking. Electronic banking is a growth industry. A flood of “banks”— state banks, community banks, and thrift institutions— as well as businesses and financial investment firms have opened transactional banking sites. International Data Corporation, a research firm, notes that sales of Internet banking applications, including the software to build websites, reached more than $93 million in 1998.24 International Data projected sales increases of 250 percent in 1999, with Internet banking applications accounting for approximately 33 percent of all U.S. banking applications on the market. The bank consulting firm of Dannenberg and Kellner predicts that Internet banking will become more attractive and more competitive when institutions offering such services expand their distribution systems and offer personal online financial advice over the Internet. As the industry continues to grow and expand globally, so too will the opportunities for fraud and money laundering, particularly in bank havens and offshore financial services centers. Customers of facilities located in such spots are known to exploit legislative loopholes or banking provisions that facilitate clandestine activity. In the face of this challenge, regulatory authorities have continued to assess their policies, to identify flaws and, as is appropriate, take action to minimize the risk of criminal misuse of the banking system. Given the global nature of the Internet environment, however, this effort must include multilateral consultations among concerned governments if it is to be successful.
3) Mckensy’s 7S frame work with special reference to organization under study:
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State Bank of India E-Banking 7 Introduction This paper discusses McKinsey's 7S Model that was created by the consulting company McKinsey and Company in the early 1980s. Since then it has been widely used by practitioners and academics alike in analyzing hundreds of organisations. The paper explains each of the seven components of the model and the links between them. It also includes practical guidance and advice for the students to analyze organisations using this model. At the end, some sources for further information on the model and case studies available on this website are mentioned. The McKinsey 7S model was named after a consulting company, McKinsey and Company, which has conducted applied research in business and industry (Pascale & Athos, 1981; Peters & Waterman, 1982). All of the authors worked as consultants at McKinsey and Company; in the 1980s, they used the model to analyze over 70 large organizations. The McKinsey 7S Framework was created as a recognizable and easily remembered model in business. The seven variables, which the authors term "levers", all begin with the letter "S":
Hard Elements
Soft Elements
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State Bank of India E-Banking 7 Strategy Shared Values Structure Skills Systems Style Staff These seven variables include structure, strategy, systems, skills, style, staff and shared values. Structure is defined as the skeleton of the organization or the organizational chart. The authors describe strategy as the plan or course of action in allocating resources to achieve identified goals over time. The systems are the routine processes and procedures followed within the organization. Staff are described in terms of personnel categories within the organization (e.g. engineers), whereas the skills variable refers to the capabilities of the staff within the organization as a whole. The way in which key managers behave in achieving organizational goals is considered to be the style variable; this variable is thought to encompass the cultural style of the organization. The shared values variable, originally termed super ordinate goals, refers to the significant meanings or guiding concepts that organizational members share (Peters and Waterman, 1982). The shape of the model (as shown in figure 1) was also designed to illustrate the interdependency of the variables.
Strategy Structure Systems Style Staff Shared values skills MCKINESEY 7S MODEL Plans for the allocation of a firms scares resources, overtime, to reach identified goals, environment, competition, customer. There was organization’s unit relate to each other; centralized, functional division, decentralized, matrix, network holding etc… The procedure, process and routine that characterized how important work is to be done. Cultural style of the organization and how key manager behave in achieving the organization goal. Numbers and types of personnel within the organization. The interconnecting center of Mckinsey’s model is shared values. What does the organization stands for and what it believe in central believe and attitude. Distinctive capacities of personnel or of the organization as a whole.
The organizational study of SBI Mulugund Naka Branch Gadag.
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State Bank of India E-Banking 7 Founder: A person named Ramakishen Dutt set up the first Bank of India in Kolkata in 1828 List of present directors: List of Directors on the Central Board of State Bank of India (As on 04th February, 2013) Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Name Shri Pratip Chaudhuri Shri Hemant G. Contractor Shri Diwakar Gupta Shri A. Krishna Kumar Shri S.Vishvanathan Shri S. Venkatachalam Shri D. Sundaram Shri Parthasarathy Iyengar Shri Thomas Mathew Shri Jyoti Bhushan Mohapatra Shri S.K. Mukherjee Designation Chairman Managing Director Managing Director Managing Director Managing Director Director Director Director Director Under Section of SBI Act 1955 19 (a) 19 (b) 19 (b) 19 (b) 19 (b) 19 (c) 19 (c) 19 (c) 19 (c) 19 (ca) 19 (cb) 19 (d) 19 (d) 19 (d)
15 16 Organization Chart:
Workmen Employee Director Officer Employee Director Dr. Rajiv Kumar Director Shri Deepak Amin Director Shri Harichandra Director Bahadur Singh Shri Rajiv Takru Director Dr. Urjit R. Patel Director
19 (e) 19 (f)
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List of staff members: Manager Deputy Manager Asst. Manager Sr. Special. Asst. Manager Assistants : A A Siddiqui : Suryakant Bheemappa : S Harish : Shreepad N Yaraguppa : K H Tahashildar : Ashok Naik : Vijayalakshmi.K : Nagraj.Adavi : R.B….. : Laxmi.N.Merug : Manjunath Talwar : Joshi Manohar : Santoshkumar Hullur : A.A.Parabhat : Gajendragad : Hublikar
Messengers
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4) SWOT ANALYSIS : SBI has its roots since 1806 which was later transformed under various names, finally SBI Was established after the act in parliament on May 1955. In the year 1959 SBI took over 8 state owned banks and since then it started to grow up carrying its heritage of servicing people at various economic levels. Strengths: SBI is the largest bank in India in terms of market share, revenue and assets. As per recent data the bank has more than 13,000 outlets and 25,000 ATM centers The bank has its presence in 32 countries engaging currency trade all over the world. The bank has a merged with State Bank of Saurashtra, State bank of Indore and the bank is planning to go further acquisition in the current FY2012. SBI has the first mover advantage in commercial banking service SBI has recently changed its vision and mission statements showing a sign of inclination towards new age banking services Weakness: Lack of proper technology driven services when compared to private banks Employees show reluctance to solve issues quickly due to higher job security and customers’ waiting period is long when compared to private banks The banks spends a huge amount on its rented buildings SBI has the largest number of employees in banking sector, hence the bank spends a considerable amount of its income in employee’s salary compensation In spite of modernization, the bank still carries the perception of traditional bank to new age customers SBI fails to attract salary accounts of corporate and many government sector employees salary accounts are also shifted to private bank for ease of operations unlike before Opportunities: SBI’s merger with five more banks namely State Bank of Hyderebad, State bank of Patiala, State bank of Bikaber and Jaipur, State of bank of Travancore and State bank of Mysore are in approval stage mergers will result in expansion of market share to defend its number one position SBI is planning to expand and invest in international operations due to good inflow of money from Asian Market since the bank is yet to modernize few
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State Bank of India E-Banking 7 of its banking operations, there is a better scope of using advanced technologies and software to improve customer relations Young and talented pool of graduates and B schools are in rise to open new horizon to so called “old government bank” Threats: Net profit of the year has decline from 9166.05 in the year FY 2010 to 7,370.35 in the year FY2011. This shows the reduce in market share to its close competitor ICICI other private banks like HDFC, AXIS bank etc. FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as people tend to switch to foreign banks for better facilities and technologies in banking service other government banks like PNB, Andhra, Allahabad bank and Indian bank are showing customer prefer to switch to private banks and financial service providers for loans and mortgages, as SBI involves stringent verification procedures and take long time for processing. 6) Learning experience: The plant training at SBI Mulugund naka branch Gadag has created wisdom of practical exposure and illumination in my mind as to what actually a Bank is and how theoretical concepts practiced in actuality. In these days of my plant training in SBI Bank I developed a sense of interest in learning new things and I went on to learn various aspects of Internet banking. I got to know how internet banking works in order to give a best quality for their customers. The study gave me the opportunity to interact with various functional heads and staff in order to know the functioning of their day to day operations and the sense of working in the organization was known. Several management concepts were slightly difficult to explore in a classroom. But after the organization training I have felt empowered with confidence to understand different management concepts in a realistic manner. Importance of different management functions such as planning, organizing, staffing, directing and controlling was known which guide the organization in facing competition. I also came to know how different employees/workers have different skills, talents, abilities, attitudes etc. and how they are being co-ordinate and utilized in a most favorable manner, in achieving organizational goals. My experience in the company with the entire department’s in-charge was also good, as all of them were really very co-operative and also very helpful in providing information needed by me and all of them explained everything concerned with the in plant training, in detail which was very helpful for me to prepare the final report.
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State Bank of India E-Banking 7 In addition, I feel that in plant training has analyzed my personal skills, talent, ability, attitude etc. which I hope in my future line of business in contributing to the organization as well as nation by working professionally and efficiently.
A. General Introduction • • • • Statement of the problem Objectives of the study Scope of the Study Methodology
E-Banking: Electronic Fund Transfers Electronic banking, also known as electronic fund transfer (EFT), uses computer and electronic technology in place of cheques and other paper transactions. EFTs are initiated through devices like cards or codes that let you, or those you authorize, access your account. Many financial institutions use ATM or debit cards and Personal Identification Numbers (PINs) for this purpose. Some use other types of debit cards that require your signature or a scan. For example, some use radio frequency identification (RFID) or other forms of "contactless" technology that scan your information without direct contact with you. The federal Electronic Fund Transfer Act (EFT Act) covers some electronic consumer transactions.
Here are some common EFT services: ATMs are electronic terminals that let you bank almost virtually any time. To withdraw cash, make deposits, or transfer funds between accounts, you generally insert
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State Bank of India E-Banking 7 an ATM card and enter your PIN. Some financial institutions and ATM owners charge a fee, particularly if you don't have accounts with them or if your transactions take place at remote locations.
AUTOMATED TELLER MACHINES (ATM): An automated teller machine or automatic teller machine(ATM) is an electronic computerized telecommunications device that allows a financial institution's customers to directly use a secure method of communication to access their bank accounts, in order to make cash withdrawals (or cash advances using a credit card) and check their account balances without the need for a human bank teller. Many ATMs also allow people to deposit cash or cheques, transfer money between their bank accounts, top up their mobile phones' pre-paid accounts or even buy postage stamps. On most modern ATMs, the customer identifies him or herself by inserting a plastic card with a magnetic stripe or a plastic smartcard with a chip that contains his or her account number. The customer then verifies their identity by entering a pass code, often referred to as a PIN (Personal Identification Number) of four or more digits. Upon successful entry of the PIN, the customer may perform a transaction. The growth of ATM’s has rapidly grown in the public places around the globe. TELE BANKING: Undertaking a host of banking related services including financial transactions from the convenience of customers chosen place anywhere across the GLOBE and any time of date and night has now been made possible by introducing on-line Telebanking services. By dialing the given Telebanking number through a landline or a mobile from anywhere, the customer gets the following facilities ? Automatic balance voice out for the default account. ? Balance inquiry and transaction inquiry in all
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State Bank of India E-Banking 7 ? Inquiry of all term deposit account ? Statement of account by Fax, e-mail or ordinary mail. ? Cheque book request ? Stop payment which is on-line and instantaneous ? Transfer of funds with CBS which is automatic and instantaneous ? Utility Bill Payments SMART CARD: A smart card usually contains an embedded 8-bit microprocessor (a kind of computer chip). The microprocessor is under a contact pad on one side of the card. Think of the microprocessor as replacing the usual magnetic stripe present on a credit card or debit card. The microprocessor on the smart card is there for security. The host computer and card reader actually "talk" to the microprocessor. The microprocessor enforces access to the data on the card. The chips in these cards are capable of many kinds of transactions. For example, a person could make purchases from their credit account, debit account or from a stored account value that's reload able. The enhanced memory and processing capacity of the smart card is many times that of traditional magnetic-stripe cards and can accommodate several different applications on a single card. It can also hold identification information, which means no more shuffling through cards in the wallet to find the right one -- the Smart Card will be the only one needed. Smart cards can also be used with a smart card reader attachment to a personal computer to authenticate a user. Smart cards are much more popular in Europe than in the U.S. In Europe the health insurance and banking industries use smart cards extensively. Every German citizen has a smart card for health insurance. Even though smart cards have been around in their modern form for at least a decade, they are just starting to take off in the U.S. DEBIT CARD:
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State Bank of India E-Banking 7 Debit cards are also known as cheque cards. Debit cards look like credit cards or ATM(automated teller machine) cards, but operate like cash or a personal cheque. Debit cards are different from credit cards. While a credit card is a way to "pay later," a debit card is a way to "pay now." When you use a debit card, your money is quickly deducted from your checking or savings account. Debit cards are accepted at many locations, including grocery stores, retail stores, gasoline stations, and restaurants. . E-CHEQUE: ? An e-Cheque is the electronic version or representation of paper cheque. ? The Information and Legal Framework on the E-Cheque is the same as that of the paper cheques. ? It can now be used in place of paper cheques to do any and all remote An E-cheque works the same way a cheque does, the cheque writer "writes" the e-Cheque using one of many types of electronic devices and "gives" the e- Cheque to the payee electronically. The payee "deposits" the Electronic Cheque receives credit, and the payee's bank "clears" the e-Cheque to the paying bank. The paying bank validates the e-Cheque and then "charges" the cheque writer's account for the cheque. Pay-by-Phone Systems: Let you call your financial institution with instructions to pay certain bills or to transfer funds between accounts. You must have an agreement with your institution to make these transfers. Personal Computer Banking: Lets you handle many banking transactions using your personal computer. For example, you may use your computer to request transfers between accounts and pay bills electronically.
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State Bank of India E-Banking 7
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Rural Engineering College
State Bank of India E-Banking 7
Title of the study: “Services provided by SBI through E-Banking with reference to SBI Branches in Gadag city”. With reference to SBI Mulugund naka Branch Gadag. Statement of the problem: 1. To compare the trust level of traditional Banking with e-Banking service marketing (consumer’s point of view). 2. To find the effectiveness & Reliability of Electronic Banking. Objectives of the study: • • • • • To understand the concept of E-banking and importance to bank as well as customers. To get aware of various aspects of E-banking. To know the uses of e-Banking for customers. To build up various solutions if any, for drawbacks in net banking. To offer useful suggestions.
Scope of the study: ? ? ? ? ? The study includes the services provided by SBI branches in Gadag City. It investigates about all applications of online banking in SBI. It would help society to understand the usefulness of electronic banking. The study will also help us to get the knowledge about process of e-Banking and usefulness to banking industry. As the study contains the 360 degree information regarding SBI and its eBanking,
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 ? Hence the study will lead to new ways to tackle the problems and the SWOT of SBI in respect of e- Banking.
Need for the study: This study is needed to find out the working of internet banking of SBI and its importance to customer as well as to bank 1. Organizing Educational Campaign to create Goodwill of company. 2. Services it effectively valuable to create place in the minds of customers. 3. Availability should be increased by using various service strategies. 4. Company should make service equal to better than competitive banks. 5. The report is helpful in knowing about the customers’ expectations about the Bank’s services. Research Methodology: Primary Data: In this research with a sample size of nearly 100 customer’s data will be available in form of questionnaire collected in terms of different questions influencing the use of internet banking. Internet Banking is considered as dependent on awareness among customers which will be studied with help of different independent variables. Secondary Data: Collection of information from different kinds of books the data of company what they maintained. Most of the data has been collected from Bank Assistant Mr. Nagaraj Adavi and by official website of State Bank of India.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Limitations of the Internet Banking System
• The primary limitation of the study is based on quality and originality of secondary data taken via the official website of State Bank Of India and Reserve Bank of India. • • The study was concerned only to SBI branches in Gadag city. Time constraint: on the time availability is 10 weeks only it was not able to do the thorough study in the selected area.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
.
Statistics Do E-banking N Valid Missing 100 0
Do E-banking
Frequency Valid YES 100 Percent 100.0 Valid Percent 100.0 Cumulative Percent 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Do e-banking ? The percentage of E-Banking users are 100% ? Here I took customer information from Bank containing only of users of Internet Banking and e-banking users.
Statistics come to know about E-Banking N Valid Missing 100 0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
come to know about E-Banking
Frequency Valid Friends Family Relatives Bank officials Advertisements Total 39 7 16 20 18 100 Percent 39.0 7.0 16.0 20.0 18.0 100.0 Valid Percent 39.0 7.0 16.0 20.0 18.0 100.0 Cumulative Percent 39.0 46.0 62.0 82.0 100.0
Customers came to know about e-Banking ? 39 respondents responded as friends ? 20 respondents responded as Bank officials ? 18 respondents chosen by advertisements. ? As shown in figure more respondents came to know about E-Banking by friends. From Family were very few because it’s an electronic Banking and only educated and youngsters can able to do.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Statistics feel E-Banking services necessary N Valid Missing
are 100 0
feel E-Banking services are necessary
Frequency Valid YES NO Total 73 27 100 Percent 73.0 27.0 100.0 Valid Percent 73.0 27.0 100.0 Cumulative Percent 73.0 100.0
Customers felt e-Banking services are necessary ? 73 respondents responsed e-banking is necessary to them. ? Remaining 27 respondents responsed that are not necessary. ? The figure shows that most of the customers felt e-Banking a necessity in their life.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Statistics reasons for choosing SBI E-Banking Services N Valid Missing 130 0
reasons for choosing SBI E-Banking Services
Frequency Valid Convenience 24 Hour Access to accounts To Save Time Other's Total 63 34 17 16 130 Percent 48.5 26.2 13.1 12.3 100.0 Valid Percent 48.5 26.2 13.1 12.3 100.0 Cumulative Percent 48.5 74.6 87.7 100.0
Reasons for choosing SBI e-Banking Services ? 63 Respondents (48%) chosen SBI e-Banking because of its convenience, 34(26%) chose because of 24 hrs access to accounts, 17(13%) chose to save time and others chose for other reasons 16(12%). ? Here the frequency is 138 i.e. respondents are only 100 but they chosen multiple choices ? From the figure it can be said that nearly 50% of the customers chose e-Banking because of its convenience and 24 Hr access to their accounts.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Statistics services Customers think are more user friendly N Valid Missing 100 0
services Customers think are more user friendly
Frequency Valid Internet Banking ATM services Telephone Banking Total 58 14 28 100 Percent 58.0 14.0 28.0 100.0 Valid Percent 58.0 14.0 28.0 100.0 Cumulative Percent 58.0 72.0 100.0
Customers who think services are more user friendly ? Out of 100 respondents 58 responded Internet Banking as more user friendly compare to other services. 28 respondents said telephone banking as user friendly & 14 said ATM as user friendly.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
? ? So as shown in figure internet banking users felt Internet Banking as more user friendly. In ATM’s they can’t do all the transactions as they do in other options.
Statistics Uses SBI online services N Valid Missing 100 0
Uses SBI online services
Frequency Valid Daily Monthly Weakly Never Total 17 43 24 16 100 Percent 17.0 43.0 24.0 16.0 100.0 Valid Percent 17.0 43.0 24.0 16.0 100.0 Cumulative Percent 17.0 60.0 84.0 100.0
Usage rate of SBI online services ? 43 respondents responded that they use SBI Online services once in a month, 24 responded once in a week.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
? Remaining user use online services once in a day.
Statistics Products& Services customers use regularly N Valid Missing 138 0
Products& Services customers use regularly
Frequency Valid account statement E-ticketing Checkbook request E-payment Transaction enquiry Total 62 32 12 16 16 138 Percent 44.9 23.2 8.7 11.6 11.6 100.0 Valid Percent 44.9 23.2 8.7 11.6 11.6 100.0 Cumulative Percent 44.9 68.1 76.8 88.4 100.0
Products& Services customers use regularly ? 62 respondents (44.9%) used e-Banking to check their account statement. 32 used for eTicketing (23%),12 used for cheque book request (8.7),16 used for e-Payment and transaction enquiry (11.6). ? From above it is clear that most of the customers use e-Banking to check their account statements and for e-Ticketing.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
? This is multiple option question so 100 respondents responded with multiple choices and the frequency became 138.
Statistics Make purchasing through E-Banking N Valid Missing 100 0
Make purchasing through E-Banking
Frequency Valid YES NO Total 48 52 100 Percent 48.0 52.0 100.0 Valid Percent 48.0 52.0 100.0 Cumulative Percent 48.0 100.0
Make purchasing through e-Banking ? ? ? Out of 100 respondents 52 responded that they did not make purchasing through eBanking. Only 48 respondents made purchasing through e-Banking. From the above graph more number of users did not make purchases through E-Banking.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Statistics Made purchasing through Banking in the last 12months N Valid Missing
E100 0
Made purchasing through E-Banking in the last 12months
Frequency Valid None one time two to four times five to seven times eight to ten times over ten times Total 34 32 14 10 6 4 100 Percent 34.0 32.0 14.0 10.0 6.0 4.0 100.0 Valid Percent 34.0 32.0 14.0 10.0 6.0 4.0 100.0 Cumulative Percent 34.0 66.0 80.0 90.0 96.0 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Made purchasing through e-Banking in the last 12months ? 34 respondents response is none. 32respondents purchased one time in year. ? Only few of respondents purchased many times through e-Banking because they prefer manual banking more than e-Banking. ? From the above graph 50% of users do not make purchases through e-Banking.
Statistics Demat Account Bills Statement Payment 100 0 100 0 Other Value Added Services 100 0
Account Statement N Valid Missin g 100 0
Funds Transfer 100 0
Check Book 100 0
TDS Enquiry 100 0
Frequency Table Account Statement Frequency Valid Neutral Good Excellent Poor N/A Total 25 16 16 16 27 100 Percent 25.0 16.0 16.0 16.0 27.0 100.0 Valid Percent 25.0 16.0 16.0 16.0 27.0 100.0 Cumulative Percent 25.0 41.0 57.0 73.0 100.0
Funds Transfer Frequency Valid Neutral Good Excellent Poor N/A Total 20 40 24 5 11 100 Percent 20.0 40.0 24.0 5.0 11.0 100.0 Valid Percent 20.0 40.0 24.0 5.0 11.0 100.0 Cumulative Percent 20.0 60.0 84.0 89.0 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Demat Account Statement Frequency Valid Neutral Good Exellent N/A Total 13 31 17 39 100 Percent 13.0 31.0 17.0 39.0 100.0 Valid Percent 13.0 31.0 17.0 39.0 100.0 Cumulative Percent 13.0 44.0 61.0 100.0
Bills Payment Frequency Valid Neutral Good Excellent Poor N/A Total 16 23 30 6 25 100 Percent 16.0 23.0 30.0 6.0 25.0 100.0 Valid Percent 16.0 23.0 30.0 6.0 25.0 100.0 Cumulative Percent 16.0 39.0 69.0 75.0 100.0
Cheque Book Frequency Valid Neutral Good Excellent Poor N/A Total 20 41 12 7 20 100 Percent 20.0 41.0 12.0 7.0 20.0 100.0 Valid Percent 20.0 41.0 12.0 7.0 20.0 100.0 Cumulative Percent 20.0 61.0 73.0 80.0 100.0
TDS Enquiry Frequency Valid Neutral Good Excellent Poor N/A Total 32 31 6 6 25 100 Percent 32.0 31.0 6.0 6.0 25.0 100.0 Valid Percent 32.0 31.0 6.0 6.0 25.0 100.0 Cumulative Percent 32.0 63.0 69.0 75.0 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Other Value Added Services Frequency Valid Good Excellent Poor N/A Total 33 20 4 43 100 Percent 33.0 20.0 4.0 43.0 100.0 Valid Percent 33.0 20.0 4.0 43.0 100.0 Cumulative Percent 33.0 53.0 57.0 100.0
Bar Chart
?
Out of 100 respondents, 27 responded as N/A & 25 for neutral, remaining responded 16 for each.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
?
40 respondents responsed funds transfer is good and 24 were excellent here we can come to know that more number of respondents likes this service.
?
39 were responded Demat acc is not applicable and 31 are responded as it was good.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 ? By the above, number of users of Demat account statement users are less and remaining were Good.
?
Out of 100 respondents 30 were chosen to excellent 25 for good and 23 for neutral.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
?
41 responded checkbook services were good & 20 were for neutral.
?
32 & 31 respondents were responded to neutral & good respectively.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
?
43 were responded other value added services are not applicable.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Overall, Banking N
Statistics satisfied with Valid Missing
SBI
E100 0
Overall, satisfied with SBI E-Banking
Frequency Valid Very Satisfied Unsatisfied Satisfied Neutral Total 18 9 59 14 100 Percent 18.0 9.0 59.0 14.0 100.0 Valid Percent 18.0 9.0 59.0 14.0 100.0 Cumulative Percent 18.0 27.0 86.0 100.0
Overall, satisfied with SBI e-Banking ? 59 respondents were satisfied with SBI E-Banking services and 18 were very satisfied.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
? ? 8 respondents chose unsatisfied because of some technical issues till not resolved. 15 are neutral.
Statistics Better rate and lower service charges N Valid Missing 100 0
24 Hrs Access 100 0
Privacy is maintained 100 0
Innovative Services 100 0
Security of transaction 100 0
Quick Services 100 0
Frequency Table Better rate and lower service charges Frequency Valid Not Important Very Important Less Important Total 22 46 32 100 Percent 22.0 46.0 32.0 100.0 Valid Percent 22.0 46.0 32.0 100.0 Cumulative Percent 22.0 68.0 100.0
24 Hrs Access Frequency Valid Not Important Very Important Less Important Total 15 51 34 100 Percent 15.0 51.0 34.0 100.0 Valid Percent 15.0 51.0 34.0 100.0 Cumulative Percent 15.0 66.0 100.0
Privacy is maintained Frequency Valid Not Important Very Important Less Important Total 15 63 22 100 Percent 15.0 63.0 22.0 100.0 Valid Percent 15.0 63.0 22.0 100.0 Cumulative Percent 15.0 78.0 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Innovative Services Frequency Valid Not Important Very Important Less Important Total 9 47 44 100 Percent 9.0 47.0 44.0 100.0 Valid Percent 9.0 47.0 44.0 100.0 Cumulative Percent 9.0 56.0 100.0
Security of transaction Frequency Valid Not Important Very Important Less Important Total 13 81 6 100 Percent 13.0 81.0 6.0 100.0 Valid Percent 13.0 81.0 6.0 100.0 Cumulative Percent 13.0 94.0 100.0
Quick Services Frequency Valid Not Important Very Important Less Important Total 15 62 23 100 Percent 15.0 62.0 23.0 100.0 Valid Percent 15.0 62.0 23.0 100.0 Cumulative Percent 15.0 77.0 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Pie Chart
?
46 respondents chose it’s very important 32 for less important.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 ? ? 51 respondents were responded 24 hrs access is very important and 34 for less important. By this graph we come to know that it’s very important.
?
More than 60 respondents responded privacy is very important.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
?
47 were responded Innovative services very important.
?
81respondents were responded security transactions was very important to them.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 ? Out of 100 respondents, 62 were responded quick services are very important to them.
Factors that customers feel important: ? 46 were respondents feel it’s very important 32 for less important. ? 51 were responded 24 hrs access is very important and 34 for less important. ? By this graph we come to know that it’s very important. ? More than 60 respondents responded privacy is very important. ? 47 were responded Innovative services are very important. ? 81 were responded security transactions are very important to them. ? Out of 100 respondents, 62 were responded quick services are very important to them
Statistics Still visits the Bank since after having started using SBI E-Banking N Valid Missing 100 0
Still visits the Bank since after having started using SBI EBanking
Frequency Valid YES NO Total 86 14 100 Percent 86.0 14.0 100.0 Valid Percent 86.0 14.0 100.0 Cumulative Percent 86.0 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Still visits the Bank since after having started using SBI e-Banking ? 86 respondents that they still visiting Bank after having started using SBI E-Banking. ? More number of customers visits Banks after having e-Banking because of they can’t do all the transactions those are physical and some of the information can be discussed with Bank employees directly.
Statistics Reasons to visit your Bank branch (single most important reason) N Valid Missing 100 0
Reasons to visit your Bank branch (single most important reason)
Frequency Valid To make deposite To get advice for investment options To Enquire About Balance To withdraw Cash Other Total 37 10 7 39 7 100 Percent 37.0 10.0 7.0 39.0 7.0 100.0 Valid Percent 37.0 10.0 7.0 39.0 7.0 100.0 Cumulative Percent 37.0 47.0 54.0 93.0 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
?
39 were responded that to withdraw cash & 37 for to make deposits.
Statistics Uses an Automated Machine(ATM) Per Month N Valid Missing
Teller 100 0
Uses an Automated Teller Machine(ATM) Per Month
Frequency Valid 1 time only 2 to 5 times 6 to 8 times 9 to 12 times Total 33 47 14 6 100 Percent 33.0 47.0 14.0 6.0 100.0 Valid Percent 33.0 47.0 14.0 6.0 100.0 Cumulative Percent 33.0 80.0 94.0 100.0
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
1) Uses an Automated Teller Machine (ATM) Per Month
?
47 were responded that they use ATM 2to 5 times per month & 33 for 1time only
Findings & Conclusions: Findings
? Maximum number of customers came to know about efrom their friends. ? More number of respondents felt e-Banking services as a necessity for their busy life and the reasons behind choosing e-Banking was- its convenience & 24/7 access. The other reason was that it saves their time. Banking services
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 ? More number of respondents felt internet Banking services as more user friendly than other services. ? Only few customers used electronic services for e-Shopping and remaining customers preferred traditional system. ? Overall, customers felt satisfied with SBI e-Banking services. ? Most of the customers used ATM services 2 to 5 times in a month.
Conclusions:
? Skilled employees are less with reference to electronic banking than manual banking. ? Decision making will be in the hands of top management only. ? The Bank is serving customers with fully automated system. ? The number of Electronic banking users is rapidly increasing.
Suggestions:
? Provide more training to the employees and customers about the handling of the electronic banking procedures. ? Reduce the complex procedures in the electronic Banking.
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 ? Quick response to customers should be given while providing services through customer care services. ? Technology & Security related issues should be handled very carefully to retain customers.
5) Analysis of Financial statement: Balance Sheet of State Bank of India Mar '12 12 mths Capital and Liabilities: Total Share Capital Equity Share Capital Share Application Money
------------------- in Rs. Cr. ------------------Mar '11 12 mths Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths
671.04 671.04 0.00
635.00 635.00 0.00
634.88 634.88 0.00
634.88 634.88 0.00
631.47 631.47 0.00
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7
Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities 0.00 83,280.16 0.00 83,951.20 1,043,647.36 127,005.57 1,170,652.93 80,915.09 1,335,519.22 Mar '12 12 mths Assets Cash & Balances with RBI 54,075.94 Balance with Banks, Money at 43,087.23 Call Advances 867,578.89 Investments 312,197.61 Gross Block 14,792.33 Accumulated Depreciation 9,658.46 Net Block 5,133.87 Capital Work In Progress 332.68 Other Assets 53,113.02 Total Assets 1,335,519.24 Contingent Liabilities Bills for collection Book Value (Rs) 698,064.74 201,500.44 1,251.05 0.00 64,351.04 0.00 64,986.04 933,932.81 119,568.96 1,053,501.77 105,248.39 1,223,736.20 Mar '11 12 mths 94,395.50 28,478.65 756,719.45 295,600.57 13,189.28 8,757.33 4,431.95 332.23 43,777.85 1,223,736.20 585,294.50 205,092.29 1,023.40 0.00 65,314.32 0.00 65,949.20 804,116.23 103,011.60 907,127.83 80,336.70 1,053,413.73 Mar '10 12 mths 61,290.87 34,892.98 631,914.15 285,790.07 11,831.63 7,713.90 4,117.73 295.18 35,112.76 1,053,413.74 429,917.37 166,449.04 1,038.76 0.00 57,312.82 0.00 57,947.70 742,073.13 53,713.68 795,786.81 110,697.57 964,432.08 Mar '09 12 mths 55,546.17 48,857.63 542,503.20 275,953.96 10,403.06 6,828.65 3,574.41 263.44 37,733.27 964,432.08 614,603.47 152,964.06 912.73 0.00 48,401.19 0.00 49,032.66 537,403.94 51,727.41 589,131.35 83,362.30 721,526.31 Mar '08 12 mths 51,534.62 15,931.72 416,768.20 189,501.27 8,988.35 5,849.13 3,139.22 234.26 44,417.03 721,526.32 736,087.59 93,652.89 776.48
QUESTIONNAIRE
Dear Sir/ Madam, I am Mr. Sudarshan Halakeri, a final year MBA student of REC.HULKOTI, I am conducting a survey on “Services provided by SBI through E-Banking with reference to SBI branches in GADAG city”. Please provide relevant information by filling this questionnaire to
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 make my survey more comprehensive. All details given by you will be kept confidential. Personal details: NAME: ………………………………….. AGE: .………………………………….. OCCUPATION: …………………………………... E-MAIL ID : …………………………………… MOB. NO. : ………………………………….. ADDRESS: ………………………………….. ………………………………….. 1) Do you do E-Banking? YES NO
2) How did u come to know about E-Banking? Friends Relatives Advertisement 3) Do you feel E-Banking services are necessary? YES NO Reason …………………………………………………………….. ……………………………………………………………………... 4) What are the reasons for choosing SBI E-Banking services? Please select all that apply Convenience 24Hour access to accounts To save time other’s Family Bank officials
5) Which of the following services you think, are more user friendly?
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Rural Engineering College
State Bank of India E-Banking 7 Internet Banking: Telephone Banking: 6) How often do you use SBI online services? Daily Weekly Monthly Never ATM Services:
7) Which online products& Services do you use regularly? Please select all that apply E-Ticketing Cheque Book Request Account Statement Transaction Enquiry Demat Account Statement 8)Do Yes you make purchasing Demand Draft SBI E-Tax E-Payment Third Party Transfer
through No
E-Banking?
9) Approximately how many times you have made purchasing through E-Banking in the last 12 months? 1 time 5 to 7 times Over 10 times 2 to 4 times 8 to 10 times
10) Please rate the following online Features of SBI +2 +1 -2
0
-1
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State Bank of India E-Banking 7 Excellent Good Poor N/A Account Statement Funds Transfer Demat Account statement Bill Payment Cheque book request TDS Enquiry Other Value Added services 11) Overall, how satisfied you are with SBI E-banking? Very satisfied Satisfied Unsatisfied Very unsatisfied Neutral
Neutral 12) For your choice of E- banking, which of the following factors do you feel important? -1 0 +1 Less Not Very Important Important Important Better rate and lower service charge 24 hours access Privacy is maintained Innovative services
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Rural Engineering College
State Bank of India E-Banking 7 Security of Transaction Quick service 13) Do you still visit the bank since after having started using SBI Ebanking? YES NO
If ‘YES’ why? …………………………………………………………………………………………… ………………………………………………………………………………… 14) What is the main reason to visit your bank branch? (Please choose the single most important reason) To make deposit To get advice for investment options To inquire about balance To withdraw cash Other 15) How frequently do you use an Automated Teller Machine (ATM) per month? 1 time only 6 to 8 times Over 12 times 16) If you have any other comments or suggestions please share with us ? …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… ……………………………………………………………… 2 to 5 times 9 to 12 times
Dept. of MBA
Rural Engineering College
State Bank of India E-Banking 7 Date: Signature
Thank You
Bibliography Books :• SBI Training guide for internet banking
Websites:• • • • www.statebankofindia.com www.onlinesbi.com www.weikipedia.com www.google.com
Dept. of MBA
Rural Engineering College
doc_834901669.doc