sip presentation.pptx

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MAY 11, 2013 TO JULY 6, 2013

Internship report submitted to SBI incompletion of the requirement of Summer

Internship at State Bank of India

On the topicStudy On Car Loans to Professional, Self employedand Businessman

UNDER THE GUIDANCE OF PREPARED BY,Prof. S.P Mohapatra Deepak Kumar

Sahoo ENROLLMENT NO-12DM075


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OBJECTIVES

To study the Car Loan procedure provided by SBI.

To study the general perceptions of Professionals, Selfemployed and Businessman regarding the process of sanctionand disbursement of SBI loans and the acceptability/popularity

of car loan provided by SBI.

From the results thus obtained, to make suggestions forimproving SBIs market share and the strategies to be adopted.


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SCOPE To ensure that the project report is useful and could

become a source of reference for the bank.

To study the practical difficulties in extending carfinance to Professionals, self employed and

Businessmen.

To find out the strategies to be adopted by the Bank forbetter result.


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METHODOLOGY

The research carried out for this project is descriptive in nature. Itrequired the banks internal circular for the car loan and otherbanks car loan schemes.

Sampling Technique: To study the Project, a Simple RandomSampling technique is used.

Sample Size: Sample of 150 people was taken into study, and theirdata was collected.

Data Collection: Collection of data is done by Primary andSecondary Data.

The primary data has been collected with the help of questionnaireas well as personal observation book, magazine; journals havebeen referred for secondary data.

Data Interpretation:

Interpretation of data is done by using statistical tools like Piediagrams, Bar graphs, and also using quantitative techniques (byusing these techniques) accurate information is obtained.


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DATA ANALYSIS

For the study 150 samples were taken, out of which 100 were customers and

50 were non customers including Professionals, self employed andbusinessman.

Customers Non

Customers

30

30

40

professio

nal

selfemployed

Businessman

15

15

20

professional

selfemployed

Businessman


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FACTORS PREFERRED FOR TAKING LOAN FROM SBI

60%

8%

10%

18%

4%

Factors preferred for loan from SBI

Low interest rates

Fast service process

Minimum processing fee

Low Emi

Longer repayementperiod


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DOCUMENTATION PROCEDURE IN SBI

0

10

20

30

40

5060

70

80

90

Professional Self employed Businessman

8580

60

1520

40in %

Satisfaction of customers in documentation procedure in SBI

satisfied

not satisfied


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BANKS PREFERRED BY CUSTOMERS

0%

10%

20%

30%

40%

50%

60%

SBI Other banks Non bankingfinance companies

56%

24%20%


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REASONS FOR CHOOSING THE BANK

0%10%20%30%40%

50%60%70%80%90% 80%

60%

75%85%

70%75%

65%72%

40% 35%

50%60%

45%

70%

60%68%

SBI

HDFC

AXIS

Financecompanies


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REASONS FOR NOT PREFERRING SBI

18%

12%

25%10%

15%

15%

5%

Reasons for not preferring SBI

High interest rate

Floating interest rates

Delayed service process

High processing fee

Callous attitude ofemployees

Unsuitable documentationprocedure


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FINDINGS

From the findings it can be clearly seen that SBIs marketshare is already high but there are certain crucial pointswhere the bank needs to work on in order to attract morecustomers.

Moreover the bank needs to improve its marketing skills, and

all the bank representatives must give their bestperformance to attract more customers.

Many drawbacks of SBI can be cited from this study andneeds to be worked over to increase its market share in autoloan.

If the processing time is shortened and the bank gives way

for minimal documentation then this can prove to be of muchuse to the bank thus, increasing the number of the peopleseeking its Auto Loan.


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RECOMMENDATIONS

The nonresident businessmen are facing more

difficulties in the documentation procedure i.e. inproviding residence proof or income proof, so somenew criteria can be introduced for them so that theymay also find ease in availing car loan.

Though interest rates of the bank regarding car loan

product is comparatively less than other organizationbut still some problems are faced by the customers dueto the floating rates, so the bank needs to work on itand as much as possible try to provide a fixed rate ofinterest to the customers.

Those customers who find that the documentationprocedure dont match their profile must also beconsidered to be important and SBI should searchsome way out for them so that the bank could prevent

losing its customer to other organization.


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CONT.

Since the Rural approach of SBI is least, the bank

should try to provide proper public awareness of their

car loan scheme and their benefits in rural areas.

SBI should provide spot financing for purchasing car in

the dealers premises during festival seasons.

The bank should employ hassle-free procedures for the

sanctioning of loan to the customers.


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LIMITATIONS

The present data is confined to the Car Loan processoffered by State bank of India.

The data collected here is specific to the selectedbranches of the various banks in Bhubaneswar andCuttack as per the instructions of the organization.

The data and information collected here has been takenfrom the internal circular of the organization and fromconversations with customers.

The customer feedback collected here is specific to

selected customers of limited centers only. Ignorant, non-cooperative and reluctant attitude of

respondents was also a major constraint.

Period of study: 8 weeks


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REFERENCES

Primary data collected: Questionnaires filled in by customers.o Primary data collected: Questionnaires filled in by non customers.

o Primary data collected: Questionnaires filled in by dealers.

o Documents available from the Bank website: www.sbi.co.in.

o Information gathered from SBI officials.

o Information gathered from the bank officials through face-to-faceconversation.

o Information gathered from Utkal Hyundai officials.

o Information gathered from Sky Automobiles.

o Information gathered from Narayani motors.

o http://www.axisbank.com/personal/loans/car-loan/car-loan-features.aspx

o http://www.hdfc.com

o Information gathered from Jyoti Automobiles.

o Information gathered from Aditya motors
http://www.axisbank.com/personal/loans/car-loan/car-loan-features.aspxhttp://www.hdfc.com/http://www.hdfc.com/http://www.axisbank.com/personal/loans/car-loan/car-loan-features.aspxhttp://www.axisbank.com/personal/loans/car-loan/car-loan-features.aspxhttp://www.axisbank.com/personal/loans/car-loan/car-loan-features.aspxhttp://www.axisbank.com/personal/loans/car-loan/car-loan-features.aspxhttp://www.axisbank.com/personal/loans/car-loan/car-loan-features.aspxhttp://www.axisbank.com/personal/loans/car-loan/car-loan-features.aspxhttp://www.axisbank.com/personal/loans/car-loan/car-loan-features.aspx


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