1. A Project Presentation on
“Customer Perception of
Home Loan Product of
State Bank of India “
16-Sep-2013
Presented by
P Sunil Kumar (A13020)
Ashish Ranjan (A13004)
Vaibhav Jain (A13021)
Maruthi Nataraj K (A12009)
2. AGENDA
• History and Evolution of SBI
• Positioning of SBI
• Advertising and Sales promotion
• Market Segmentation
• SBI Home Loan product
• Competitive strategies adopted by SBI
• Distribution Strategy of SBI
• Analysis and Inference
• Recommendations
• Future directions for SBI
3. HISTORY AND EVOLUTION OF SBI
• Amalgamation of Presidency Banks on 27-Jan-1921
• Nationalization of Imperial Bank of India on 1955
• Birth of State Bank of India
• State Bank of India (Subsidiary Banks) Act, 1959
• Logo of SBI
• Slogan – The Bank to Every Indian
• Mission Statement
• Vision Statement
4. HISTORY AND EVOLUTION OF SBI
Structure – Current Board of Directors
As on 14 January 2013, there are fifteen members in the SBI board of
directors:• Pratip Chaudhuri (Chairman)
• Hemant G. Contractor (Managing Director)
• Arundhati Bhattacharya (Managing Director)
• A. Krishna Kumar (Managing Director)
• S. Visvanathan (Managing Director)
• S. Venkatachalam (Director)
• D. Sundaram (Director)
• * Thomas Mathew (Director)
• S.K. Mukherjee (Officer Employee Director)
• Rajiv Kumar (Director)
• Jyoti Bhushan Mohapatra (Workmen Employee Director)
• Deepak Amin (Director)
6. POSITIONING OF SBI
• SBI as centuries-old brand
• Emphasis on Pure Banking
• Entry into many businesses with
strategic tie ups
- Pension Funds
- General Insurance
- Mobile Banking etc
7. ADVERTISING AND SALES PROMOTION
ADVERTISING
• Participation in various consumer exhibition and
meetings
• Tie-ups with builders / car and other vehicle dealer
• Festive loan products
• Advertising in TV and Newspapers
• Oral Marketing
• Ads at various display boards
• CSR Initiatives
• Social Media
8. ADVERTISING AND SALES PROMOTION
SALES PROMOTION
• Loyalty Rewards
Program – Online Banking
• SBI Cards – Cash Back
Offers
12. SBI HOME LOAN PRODUCT
• SBI Home Loan
- SBI Easy Home Loan for Loan <= 30L
- SBI Advantage Home Loan for Loan > 30L
• Features
• Purpose
• Eligibility
• Amount
- 40 to 60
times of NMI
• Other variants
15. COMPETITIVE STRATEGIES ADOPTED BY SBI
SBI SWOT Analysis
• IT Plan by KPMG (consultant) - 2001
• Business Process Reengineering – 2004
• BaNCS (core banking software) by TCS
• Effective training methodology
- National level Apex Training Institutes
- State level learning centers
- Case studies, Group Discussions, Project Work etc
- E-learning for enhancement of employees’ skills
16. DISTRIBUTION STRATEGY OF SBI
SBI SWOT Analysis
• Branches
• ATMs
• Internet banking
• Mobile banking
• POS
• Kiosk banking
17. ANALYSIS AND INFERENCE
• List of Hypothesis to be tested
- H1: All the features of SBI Home Loan
including interest rates are in public domain
making it the most preferred Home Loan
provider.
- H2: SBI offers customer centric services pre
and post disbursal of home loan.
- H3: TV and Newspaper advertisements are
important sources of awareness on SBI Home
Loan.
• Sampling plan and Sampling Size
- Sample Size - 63
- Sample plan - Random Sampling Plan
39. • Features
RECOMMENDATIONS
• Try to ease the documentation burden on the customer (within the
regulatory framework)
• Focus more on process automation for efficient Home Loan sanction
procedure and reduced TAT
• Customer Service
•Provide essential training for employees to be more responsive
organization in terms of customer service
• Advertisements
• Come up more creative and innovative ways to advertise Home Loan
product in TV and Newspapers
• Create more awareness on Home
customers
Loan variants among potential
40. FUTURE DIRECTIONS FOR SBI
• Go closer to people further more as banking habit
spreads (Reach masses with customized products)
• Sustain customer loyalty
• Give better value to customers on deposit side too
• Take corrective measures to ensure % of bad loans
is below the industry average
• Make mobile banking more popular
• Think strategically on Data mining/CRM based
campaigns.
