Defence Salary Package (DSP)/ Para Military
Service Package(PMSP): Expectations And
Suggestions For Improvement
STATE BANK OF INDIA
Internship Branch: Local Head Office Guwahati
• Type - Public
•Industry - Banking, financial services
• Founded -1 July 1955
• Headquarters - Mumbai, Maharashtra, India
• Area served -Worldwide
• Key people - Pratip Chaudhuri(Chairman)
• Revenue as on 31st March 2013 - Rs.36,33,087 crores
• State Bank of India is India's largest bank with a network of over
13,000 branches and over 21,000 ATMs in India and has 188 Foreign
Offices in 34 countries.
• On 29th May 2009, the State Bank of India (SBI) signed a Memorandum
of Understanding (MoU) with the Indian Army for offering customized
salary packages to army personnel across the country.
• Defence Salary Package (DSP)/ Para Military Service Package (PMSP)
is a customized salary package which offers many concessions in service
charges and in interest rates on loans for serving as well as retired Defence
personnel of Army/ Navy/Air Force as well as RR and GREF (BRO)
having their Salary/Pension accounts with SBI across the country.
Objectives Of The Study
• To know about the expectations and suggestions regarding the
Defence Salary package offered by SBI.
• To find out the attributes of the customers towards the Defence
Salary packages and its services offered by SBI.
• To know the customers opinion towards the Defence Salary
Data Collection Method
Primary data has been collected through personal interview using
questionnaire by direct contact. Discussions with Defence Personnel’s and
Bank staff in DSP special branches.
The various sources that were used for the collection of secondary data
are:- Database of SBI, Internal reports of the banks, internet, newspapers,
Samples of 110 customers of the Defence Personnel’s were chosen for the
purpose of study.
•Sampling Method: Random Sampling Method
From the large number of Defence account holders in SBI, 110 customers
were selected randomly from Defence Units for the study.
• Majority of the Armed Force surveyed i.e 93.6% out of 110 respondents are aware
about the Defence Salary Package/ Para Military Service package offered by SBI.
• Out of 110 respondents surveyed, 87.3% i.e 96 respondents have DSP/ PMSP under
• Majority of the Defence Personnel i.e 79.09% are willing to recommend their friends
and relatives to open an account with SBI whereas 11.8% would recommend other
• 75.5% of the respondents are satisfied with the services provided by State Bank of
• Nearly 80% of the Bank Staff have either good or very good knowledge regarding
• 95.5% of the respondents involved in the survey were Sepoy’s, 3.6% were
Commissioned Officer of defence and 0.9% were Junior Commissioned Officer of the
Indian Armed force.
•The loan facilities are available only in the nearest place of posting, so irrespective of the
place of posting the loan should be allowed to be availed.
•In the Personal loan section there should be some reduction in the documentations.
•Concessions and reductions of the discounts on finely price products like Home,
vehicles, etc are not valid in all places especially in some rural areas.
•There is a lack of awareness on part of the operating functions like the bank staff and
accountants in the DSP special branches.
•It is often observed that the out of the two ATM cards , the one which comes in the
branch office usually come in the name of the Branch Manager and not in the name of the
•Since the sepoys are not highly educated, most of them find it difficulty in availing the
2nd ATM card, the bank staff receives lots of complains in these regard.
•The loan discount in the Housing section should be increased from .50bps to 1 bps so as
to make a real difference because the present concession is making hardly any difference.
Limitations Of The Study
• The accuracy of the findings may not be perfect due to bias
• The project is done on the assumption that the given data by the
respondents are true.
•Getting appointments to the higher officials of the Defence
Personnel was a problem.
• Most of the customers surveyed are aware of Defence Salary Package
offered by SBI.
• The sepoys are not much educated and so the bank should help the
customers to know about such products and schemes, which they are
• Last but not the least SBI in its efforts to simplify and streamline the
salary disbursement procedure and to make available modern banking
facilities to its personnel was successful in reaching out to the defence
personnel’s across the county.