DYANSAGAR INSTITUTE OF MANAGEMENT & RESEARCH

PAPER PRESENTATION

ON

STATE BANK OF INDIA

Rajeshree Abuswar

Vidya Mane

Mahadeven K.

Harshal Borole

Vikram Nananwar

Rushikesh Kulkarni

Amol Raut

Sanghpal Chakranarayan

State Bank of India (SBI)

 The evolution of State Bank of India can be traced back to the first decade of
the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta,
on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later,
on 2 January 1809. It was the first ever joint-stock bank of the British India,
established under the sponsorship of the Government of Bengal. Subsequently, the
Bank of Bombay (established on 15 April 1840) and the Bank of Madras (established
on 1 July 1843) followed the Bank of Bengal. These three banks dominated the
modern banking scenario in India, until when they were amalgamated to form the
Imperial Bank of India, on 27 January 1921.

An important turning point in the history of State Bank of India is the launch of
the first Five Year Plan of independent India, in 1951. The Plan aimed at serving the
Indian economy in general and the rural sector of the country, in particular. Until the
Plan, the commercial banks of the country, including the Imperial Bank of India,
confined their services to the urban sector. Moreover, they were not equipped to
respond to the growing needs of the economic revival taking shape in the rural areas
of the country. Therefore, in order to serve the economy as a whole and rural sector
in particular, the All India Rural Credit Survey Committee recommended the
formation of a state-partnered and state-sponsored bank.

The All India Rural Credit Survey Committee proposed the take over of the
Imperial Bank of India, and integrating with it, the former state-owned or state-
associate banks. Subsequently, an Act was passed in the Parliament of India in May
1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This
resulted in making the State Bank of India more powerful, because as much as a
quarter of the resources of the Indian banking system were controlled directly by the
State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959.
The Act enabled the State Bank of India to make the eight former State-associated
banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried
out by the 480 offices comprising branches, sub offices and three Local Head
Offices, inherited from the Imperial Bank. Instead of serving as mere repositories of
the community's savings and lending to creditworthy parties, the State Bank of India
catered to the needs of the customers, by banking purposefully. The bank served the
heterogeneous financial needs of the planned economic development.

Branches
The corporate center of SBI is located in Mumbai. In order to cater to different
 functions, there are several other establishments in and outside Mumbai, apart from
the corporate center. The bank boasts of having as many as 14 local head offices
and 57 Zonal Offices, located at major cities throughout India. It is recorded that SBI
has about 10000 branches, well networked to cater to its customers throughout
India.

ATM Services

SBI provides easy access to money to its customers through more than 8500 ATMs
in India. The Bank also facilitates the free transaction of money at the ATMs of State
Bank Group, which includes the ATMs of State Bank of India as well as the
Associate Banks – State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State
Bank of Indore, etc. You may also transact money through SBI Commercial and
International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card.

Subsidiaries

The State Bank Group includes a network of eight banking subsidiaries and several
non-banking subsidiaries. Through the establishments, it offers various services
including merchant banking services, fund management, factoring services, primary
dealership in government securities, credit cards and insurance.

The eight banking subsidiaries are:

 State Bank of Bikaner and Jaipur (SBBJ)

 State Bank of Hyderabad (SBH)
 State Bank of India (SBI)
 State Bank of Indore (SBIR)
 State Bank of Mysore (SBM)
 State Bank of Patiala (SBP)
 State Bank of Saurashtra (SBS)
 State Bank of Travancore (SBT)

VISION
 “First in Customer Satisfaction”
It vividly describes its customer centric focus and shall be the guiding principle
for your Bank's plans, activities and strategies in future our mass International
communication programme.

STRUCTURE AND ORGANIZATION

The Banks Corporate Office is located at Mumbai. Its domestic operational
area is divided into 14 Circles, each with one Local Head Office and a few Zonal and
Regional Offices. The Bank is present not just in the major metropolises of India but
has wide reach in the villages of India. The Bank's top management consists of the
Chairman, group executives for National Banking Group, Corporate Banking Group,
International Banking Group and Associates & Subsidiaries, and four staff
functionaries in charge of finance, credit, human resources & technology
management and inspection & audit.

Three Strategic Business Units (SBUs) under the Corporate Banking Group
have been set up by SBI to pay attention to big corporate customers. Distinguishing
features of the SBUs are assimilation of operational planning with operations within
each SBU, an alert delivery system with suitable specialist inputs and focused
attention on profitability.

The staff and functionaries at various levels have been delegated higher
financial powers to ensure quicker decision making in credit areas and disposal of a
large number of credit proposals at operating units' level. A committee approach has
been adopted, both at the apex and circle levels, for sanction of large advances and
loans. Keeping this in mind Central Office Credit Committee and Circle Credit
Committees have been set up to ultimately ensure faster delivery. Credit and
systemic risk processes have thus accordingly been restructured. Simplified and
concise credit appraisal formats have been designed to ensure improvement in the
quality of credit decisions, better quality of assets and reduction of Non Performing
Assets or NPAs.
 AGM - Operations

FORMULATION

Formulation is a concept which is derived from the word formal. It is an act of making
the work formal in the organization that means according to the rules and regulation
and also the company policies which was created during the time of formation. All
the officers have certain financial powers and administrative powers depending upon
their positions

The delegation of financial powers of various grades of officials is decided by the

Central Board which are revised from time to time, depending upon the
organization’s requirement and also Government / RBI guidelines.

There is a well defined organizational structure and a clear system of accountability

and control system, which also take into account the RBI guidelines.
There are quite a number of documents like manuals, book of instructions, codified
circulars, scheme of delegation of powers, proceedings of the board etc and also the
periodical circulars used by the employees for discharging various functions.

PRODUCTS

1. Investment Banking :-
An investment bank is a financial institution that assists corporations
and governments in raising capital by underwriting and acting as the agent in
the issuance of securities. An investment bank also assists companies
involved in mergers and acquisitions, derivatives, etc. Further it provides
ancillary services such as market making and the trading of derivatives, fixed
income instruments, foreign exchange, commodity, and equity securities.
Unlike commercial banks and retail banks, investment banks do not take
deposits.
To provide investment banking services in the United States an advisor
must be a licensed broker-dealer. The advisor is subject to Securities &
Exchange Commission (SEC) (FINRA) regulation [1]. Until 1999, the United
 States maintained a separation between investment banking and commercial
banks. Other industrialized countries, including G7 countries, have not
maintained this separation historically. Trading securities for cash or securities
(i.e., facilitating transactions, market-making), or the promotion of securities
(i.e., underwriting, research, etc.) was referred to as the "sell side".
Dealing with the pension funds, mutual funds, hedge funds, and the
investing public who consumed the products and services of the sell-side in
order to maximize their return on investment constitutes the "buy side". Many
firms have buy and sell side components.
An investment bank is split into the so-called front office, middle office,
and back office. While large full-service investment banks offer all of the lines
of businesses, both sell side and buy side, smaller sell side investment firms
such as boutique investment banks and small broker-dealers will focus on
investment banking and sales/trading/research, respectively.

2. Asset Management :-
Investment management is the professional management of various
securities (shares, bonds and other securities) and assets (e.g., real estate),
to meet specified investment goals for the benefit of the investors. Investors
may be institutions (insurance companies, pension funds, corporations etc.) or
private investors (both directly via investment contracts and more commonly
via collective investment schemes e.g. mutual funds or exchange-traded
funds) .
The term asset management is often used to refer to the investment
management of collective investments, (not necessarily) whilst the more
generic fund management may refer to all forms of institutional investment as
well as investment management for private investors. Investment managers
who specialize in advisory or discretionary management on behalf of
(normally wealthy) private investors may often refer to their services as wealth
management or portfolio management often within the context of so-called
"private banking".
The provision of 'investment management services' includes elements
of financial statement analysis, asset selection, stock selection, plan
 implementation and ongoing monitoring of investments. Investment
management is a large and important global industry in its own right
responsible for caretaking of trillions of yuan, dollars, euro, pounds and yen.
Coming under the remit of financial services many of the world's largest
companies are at least in part investment managers and employ millions of
staff and create billions in revenue.
Fund manager (or investment adviser in the United States) refers to
both a firm that provides investment management services and an individual
who directs fund management decisions.
Asset allocation
The different asset class definitions are widely debated, but four
common divisions are stocks, bonds, real-estate and commodities. The
exercise of allocating funds among these assets (and among individual
securities within each asset class) is what investment management firms are
paid for. Asset classes exhibit different market dynamics, and different
interaction effects; thus, the allocation of money among asset classes will
have a significant effect on the performance of the fund

3. Pension :-
In general, a pension is an arrangement to provide people with an
income when they are no longer earning a regular income from employment.
[1] Pensions should not be confused with severance pay; the former is paid in
regular installments, while the latter is paid in one lump sum.
The terms retirement plan or superannuation refer to a pension granted
upon retirement.[2] Retirement plans may be set up by employers, insurance
companies, the government or other institutions such as employer
associations or trade unions. Called retirement plans in the USA, they are
more commonly known as pension schemes in the UK and Ireland and
superannuation plans in Australia and New Zealand. Retirement pensions are
typically in the form of a guaranteed life annuity, thus insuring against the risk
of longevity.
 A pension created by an employer for the benefit of an employee is
commonly referred to as an occupational or employer pension. Labor unions,
the government, or other organizations may also fund pensions. Occupational
pensions are a form of deferred compensation, usually advantageous to
employee and employer for tax reasons. Many pensions also contain an
additional insurance aspect, since they often will pay benefits to survivors or
disabled beneficiaries. Other vehicles (certain lottery payouts, for example, or
an annuity) may provide a similar stream of payments.
The common use of the term pension is to describe the payments a
person receives upon retirement, usually under pre-determined legal and/or
contractual terms. A recipient of a retirement pension is known as a pensioner
or retiree.
Types of pensions
Employment-based pensions (retirement plans)
A retirement plan is an arrangement to provide people with an income
during retirement when they are no longer earning a steady income from
employment. Often retirement plans require both the employer and employee
to contribute money to a fund during their employment in order to receive
defined benefits upon retirement. It is a tax deferred savings vehicle that
allows for the tax-free accumulation of a fund for later use as a retirement
income. Funding can be provided in other ways, such as from labor unions,
government agencies, or self-funded schemes. Pension plans are therefore a
form of "deferred compensation". A SSAS is a type of employment-based
Pension in the UK.
Social and state pensions
Many countries have created funds for their citizens and residents to
provide income when they retire (or in some cases become disabled).
Typically this requires payments throughout the citizen's working life in order
to qualify for benefits later on. A basic state pension is a "contribution based"
benefit, and depends on an individual's contribution history.
Disability pensions
 Some pension plans will provide for members in the event they suffer a
disability. This may take the form of early entry into a retirement plan for a
disabled member below the normal retirement age.

4. Mortgage :-
A mortgage loan is a loan secured by real property through the use of a
mortgage note which evidences the existence of the loan and the
encumbrance of that realty through the granting of a mortgage which secures
the loan. However, the word mortgage alone, in everyday usage, is most often
used to mean mortgage loan.
A home buyer or builder can obtain financing (a loan) either to
purchase or secure against the property from a financial institution, such as a
bank, either directly or indirectly through intermediaries. Features of mortgage
loans such as the size of the loan, maturity of the loan, interest rate, method
of paying off the loan, and other characteristics can vary considerably.
In many countries, though not all (Iran and Bali, Indonesia are two
exceptions [1]), it is normal for home purchases to be funded by a mortgage
loan. Few individuals have enough savings or liquid funds to enable them to
purchase property outright. In countries where the demand for home
ownership is highest, strong domestic markets have developed.

Mortgage loan types

There are many types of mortgages used worldwide, but several
factors broadly define the characteristics of the mortgage. All of these may be
subject to local regulation and legal requirements.
Interest: interest may be fixed for the life of the loan or variable, and
change at certain pre-defined periods; the interest rate can also, of course, be
higher or lower.
Term: mortgage loans generally have a maximum term, that is, the
number of years after which an amortizing loan will be repaid. Some mortgage
loans may have no amortization, or require full repayment of any remaining
balance at a certain date, or even negative amortization.
 Payment amount and frequency: the amount paid per period and the
frequency of payments; in some cases, the amount paid per period may
change or the borrower may have the option to increase or decrease the
amount paid.
Prepayment: some types of mortgages may limit or restrict prepayment
of all or a portion of the loan, or require payment of a penalty to the lender for
prepayment.

5. Credit cards :-
A credit card is a small plastic card issued to users as a system of
payment. It allows its holder to buy goods and services based on the holder's
promise to pay for these goods and services.[1] The issuer of the card grants
a line of credit to the consumer (or the user) from which the user can borrow
money for payment to a merchant or as a cash advance to the user. Usage of
the term "credit card" to imply a credit card account is a metonym.
A credit card is different from a charge card: a charge card requires the
balance to be paid in full each month. In contrast, credit cards allow the
consumers a continuing balance of debt, subject to interest being charged.
Most credit cards are issued by banks or credit unions, and are the shape and
size specified by the ISO/IEC 7810 standard as ID-1. This is defined as
85.60 × 53.98 mm (3.370 × 2.125 in) (33/8 × 21/8 in) in size.

6. Private Banking :-
Private banking is a term for banking, investment and other financial
services provided by banks to private individuals investing sizable assets. The
term "private" refers to the customer service being rendered on a more
personal basis than in mass-market retail banking, usually via dedicated bank
advisers. It should not be confused with a private bank, which is simply a non-
incorporated banking institution.
Historically private banking has been viewed as very exclusive, only
catering for high net worth individuals with liquidity over $2 million, although it
is now possible to open some private bank accounts with as little as $250,000
for private investors.[citation needed] An institution's private banking division
 will provide various services such as wealth management, savings,
inheritance and tax planning for their clients. A high-level form of private
banking (for the especially affluent) is often referred to as wealth
management. For private banking services clients pay either based on the
number of transactions, the annual portfolio performance or a "flat-fee",
usually calculated as a yearly percentage of the total investment amount.
[citation needed]
The word "private" also alludes to bank secrecy and minimizing taxes
through careful allocation of assets or by hiding assets from the taxing
authorities. Swiss and certain offshore banks have been criticized for such
cooperation with individuals practicing tax evasion. Although tax fraud is a
criminal offense in Switzerland, tax evasion is only a civil offence, not
requiring banks to notify taxing authorities.[1]

7. Commercial Banking :-
A commercial bank is a type of financial intermediary and a type of
bank. Commercial banking is also known as business banking. It is a bank
that provides checking accounts, savings accounts, and money market
accounts and that accepts time deposits.[1] After the implementation of the
Glass-Steagall Act, the U.S. Congress required that banks engage only in
banking activities, whereas investment banks were limited to capital market
activities. As the two no longer have to be under separate ownership under
U.S. law, some use the term "commercial bank" to refer to a bank or a division
of a bank primarily dealing with deposits and loans from corporations or large
businesses. In some other jurisdictions, the strict separation of investment
and commercial banking never applied. Commercial banking may also be
seen as distinct from retail banking, which involves the provision of financial
services direct to consumers. Many banks offer both commercial and retail
banking services.
Commercial banks engage in the following activities:
 processing of payments by way of telegraphic transfer,
EFTPOS, internet banking, or other means
 issuing bank drafts and bank cheques
  accepting money on term deposit
 lending money by overdraft, installment loan, or other means
 providing documentary and standby letter of credit, guarantees,
performance bonds, securities underwriting commitments and
other forms of off balance sheet exposures
 safekeeping of documents and other items in safe deposit boxes
 sale, distribution or brokerage, with or without advice, of
insurance, unit trusts and similar financial products as a
“financial supermarket”
 cash management and treasury services
 merchant banking and private equity financing
 Traditionally, large commercial banks also underwrite bonds,
and make markets in currency, interest rates, and credit-related
securities, but today large commercial banks usually have an
investment bank arm that is involved in the mentioned activities.

8. Retail Banking :-
Retail banking refers to banking in which banking institutions execute
transactions directly with consumers, rather than corporations or other banks.
Services offered include: savings and checking accounts, mortgages,
personal loans, debit cards, credit cards, and so forth.
Retail Banking services are also termed as Personal Banking services.

UNIQUE SELLING POINT

The Unique Selling Proposition (also Unique Selling Point) is a

marketing concept that was first proposed as a theory to explain a pattern
among successful advertising campaigns of the early 1940s. It states that
such campaigns made unique propositions to the customer and that this
convinced them to switch brands. The term was invented by Rosser Reeves
of Ted Bates & Company. Today the term is used in other fields or just
casually to refer to any aspect of an object that differentiates it from similar
objects.
 In marketing: Unique Selling Point – what's unique or special about
your product that will set it apart from competitors' products?
Unique selling proposition, means a unique quality that distinct that brand
from other brands, brands attract consumers by emphasizing on their Uses.
For SBI (State Bank of India) USP is ATM Centers, u can find SBI's
in every corner. This distinguishes SBI from other banks...