bank, functions,project, seminar

1. A Project Report On
A Case Study Of SBI bank submitted in partial fulfillment of
Degree of Bachelor in Business Administration
Khalsa College, Amritsar.
Submitted By:
Harpreet Singh
Uni. Roll No.: 1411660
Roll No.: 435
Submitted To:
Prof. Ravneet Kaur
Department of Commerce &
Business Administration
Khalsa College , Amritsar.

2. Acknowledgement
It gives me great pleasure in acknowledgement that invaluable assistance
provided to me by various personalities in the successful completion of this
project report . There are indefeatable lectures and guides who bestow their
fortunes upon students particularly in research field. Words are often too weak
to express ones inner feeling , especially the sense of indebtness.
I am highly thankful to my teacher and guide, Prof. Ravneet kaur,
Department of Commerce and Administration , Khalsa College Amritsar for her
continous motivation, encouragement and timely guidance which helped me a
lot in completing my project report.
(Harpreet Singh)
Uni. Roll No.: 1411660
Roll No.: 435

3. Index
S.No. Particulars Page No.
1. Introduction to Banks 1-3
2. Objectives of Study 4-5
3. Profile of State Bank Of India
4. Products & Services of SBI
5. Future Challenges Of Banks in India
6. Conclusion & Suggestions

4. Introduction
Finance is the life blood of trade, commerce and industry. Nowadays ,
banking sector act as a backbone of modern business. Development of any
country merely depends upon banking system.
It is interesting to trace the origin of the word "bank" in the modern sense
to the German word "bank" which means, heap or mound or joint stock fund.
From this the Italian word "banco" mean heap of money was coined.
Some people have the opinion that the word "bank' is derived from the
French words bancus or banque which means a "bench" initially ,the bankers,
the Jews in Lombardy, transacted their business on benches in the market place
& the bench resembled the banking counter. If a banker failed, his "banque"
(bench) when broken up by the people, hence the word "bankrupt" has come. In
simple term, bankrupt means a person who has lost all his money, wealth or
financial resources.
A bank is a financial institution which deals with depoists and advances
and other related services. It receives money from those who want to save in the
form of deposits and it lends money to those who need it.

5. Meaning of bank
A bank is a financial institution that accepts deposits & channels those
deposits into lending activities. Thus people were in need of a place where
money could be saved safely and would be available when required. Banks are
such places where people can deposit their savings with the assurance that they
will be able to withdraw money from the deposits whenever required.
Definition
"Bank can be defined as one that collects money from those who have
it to spare or who are saving it out of their income & lends the money so
collected to those who require it"
Sec.5(b) of the banking regulations Act, 1949---
“ Banking company is one which transacts the business of banking which
means the accepting for the purpose of lending or investment of deposits money
from the public repayable on demand or othewise and withdrawable by cheque ,
draft, order or otherwise.”
Oxford Dictionary defines a bank as ---
“An establishment for custody of money , which it pays out on
customer’s orders.”

6. Types of banks
Central bank:
This bank is normally government owned & charged with supervising
commercial banks & control the cash rate. A central bank is a banking
institution granted the exclusive privilege to lend a government its currency.
Like a normal commercial bank, a central bank charges interest on the loans
made to borrowers, primarily the government of whichever country the bank
exists for, and to other commercial banks, typically as a 'lender of last resort'.
Commercial bank:
The term referred to a bank or a division of a bank that mostly deals with
deposits & loans from corporations or large business. 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.
Instruments of banks
Money & currency
Cheque
Bill of exchange or drafts
Acceptance
Promissory notes

7. Objectives Of Study
Issue of Money
Issue of Money, in the form of banknotes and current accounts subject to
cheque or payment at the customer's order. These claims on banks can act as
money because they are negotiable and/or repayable on demand, and hence
valued at par. They are effectively transferable by mere delivery, in the case of
banknotes, or by drawing a cheque that the payee may bank or cash.
Collection And Settlement Of Payments
Banks act as both collection and paying agents for customers, participating
in interbank clearing and settlement systems to collect, present, be presented
with, and pay payment instruments. This enables banks to economise on
reserves held for settlement of payments, since inward and outward payments
offset each other. It also enables the offsetting of payment flows between
geographical areas, reducing the costof settlement between them.
Credit Intermediation
Banks borrow and lend back to backon their own accountas middle man.
Credit Quality Improvement
Banks lend money to ordinary commercial and personal borrowers (ordinary
credit quality), but are high quality borrowers. The improvement comes from
diversification of the bank's assets and capital which provides a buffer to absorb
losses without defaulting on its obligations. However, banknotes and deposits
are generally unsecured; if the bank gets into difficulty and pledges assets as
security, to raise the funding it needs to continue to operate, this puts the note
holders and depositors in an economically subordinated position.

8. Maturity Transformation
Banks borrow more on demand debt and short term debt, but provide more long
term loans. In other words, they borrow short and lend long. With a stronger
credit quality than most other borrowers, banks can do this by aggregating
issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g.
withdrawals and redemptions of banknotes), maintaining reserves of cash,
investing in marketable securities that can be readily converted to cash if
needed, and raising replacement funding as needed from various sources (e.g.
wholesale cash markets and securities markets).
Profile Of State Bank of India
SBI is the largest commercial bank in India in terms of assets, deposits,
profits, branches, customers and employees. The Government of India itself is
the largest shareholder of this Fortune 500 company, with 58.60% ownership,
and SBI was ranked 152nd in The Forbes list of Global 2000 firms in May 2015.
State Bank of India is an Indian multinational, public
sector banking and financial services company. It is a government-owned
corporation with its headquarters in Mumbai, Maharashtra.
As of 2014-15, it has assets of INR 20,48,080crores and more than 14000
branches, including 191 foreign offices spread across 36 countries, making it
the largest banking and financial services company in India by assets.
It is authorised and regulated by Reserve Bank of India and Prudential
Regulation Authority.
200 years of banking experience
In 1806, the Bank of Calcutta (later the Bank of Bengal) was founded
and, in 1921, it merged with the banks of Madras and Bombay to form the
Imperial Bank of India. In 1955, SBI was created by an act of Parliament to
succeed the Imperial Bank of India.

9. Associate banks
Main Branch of SBI in Mumbai.SBI now has five associate banks.
State Bank of Mysore (founded 1913)
State Bank of Patiala (founded 1917)
State Bank of Hyderabad (founded 1941)
State Bank of Travancore (founded 1945)
State Bank of Bikaner & Jaipur (founded 1963)
Our bank is your bank
The SBI Group, comprising SBI and five associate banks, commands a
22% share of the domestic Indian banking market. Their network boasts over
20,000 branches in India, and 191 offices in 36 countries globally.
The group is made up of SBI and five associate banks and a number of
banking and non- banking subsidiaries and joint ventures. The group has 191
offices in 36 countries across the world. As on 31st of March 2015, the group
had assets worth USD 432.02 billion, deposits of USD 328.47 billion and
capital & reserves in excess of USD 25.82 billion. The group commands over
22% share of the domestic Indian banking market.
The non-banking subsidiaries and joint ventures are market-leaders in key
sectors, such as life insurance, merchant banking, mutual funds, credit cards,
factoring services, security trading and primary dealership.
These diverse retail and wholesale services are delivered by dedicated,
highly skilled professional teams. And as you’d expect, we have relationships
with thousands of local and international banks through SWIFT – enabling us to
securely exchange financial-transaction data and manage trade-related banking
business anywhere in the world.

10. Products & Services Of SBI
*Automatic Teller Machine:
ATM is designed to perform the most important function of bank. It is
operated by plastic card with its special features. The plastic card is replacing
cheque, personal attendance of the customer, banking hour's restrictions and
paper based verification. There are debit cards.
ATMs used as spring board for Electronic Fund Transfer. ATM itself can
provide information about customers account and also receive instructions from
customers - ATM cardholders.
An ATM is an Electronic Fund Transfer terminal capable of handling
cash deposits, transfer between accounts, balance enquiries, cash withdrawals
and pay bills. It may be on-line or 0ff-line. The on-line ATN enables the
customer to avail banking facilities from anywhere. In off-line the facilities are
confined to that particular ATM assigned. Any customer possessing ATM card
issued by the Shared Payment Network System can go to any ATM linked to
Shared Payment Networks and perform his transactions.
Credit card/ Debit Cards:
The Credit Card holder is empowered to spend wherever and whenever
he wants with his Credit Card within the limits fixed by his bank. Credit Card is
a postpaid card.
Debit Card, on the other hand, is a prepaid card with some stored value.
Every time a person uses this card, the Internet Banking house gets money
transferred to its account from the bank of the buyer. The buyers account is
debited with the exact amount of purchases. An individual has to open an
account with the issuing bank which gives debit card with a Personal
Identification Number (PIN).

11. When he makes a purchase, he enters his PIN on shops PIN pad. When
the card is slurped through the electronic terminal, it dials the acquiring bank
system - either Master Card or VISA that validates the PIN and finds out from
the issuing bank whether to accept or decline the transactions. The customer can
never overspend because the system rejects any transaction which exceeds the
balance in his account. The bank never faces a default because the amount spent
is debited immediately from the customer's account.
Smart Card:
Banks are adding chips to their current magnetic stripe cards to
enhance security and offer new service, called Smart Cards. Smart Cards
allow thousands of times of information storable on magnetic stripe cards.
In addition, these cards are highly secure, more reliable and perform multiple
functions. They hold a large amount of personal information, from medical and
health history to personal banking and personal preferences.
* ONLINE BANKING:
Online banking solutions have many features and capabilities in common,
but traditionally also have some that are application specific.
Bill payment service:
You can facilitate payment of electricity and telephone bills, mobile phone,
credit card and insurance premium bills as each bank has tie-ups with various
utility companies, service providers and insurance companies, across the
country. To pay your bills, all you need to do is complete a simple one-time
registration for each biller. You can also set up standing instructions online to
pay your recurring bills, automatically. Generally, the bank does not charge
customers for online bill payment.
Fund transfer:
You can transfer any amount from one account to another of the same or
any another bank. Customers can send money anywhere in India. Once you
login to your account, you need to mention the payees' account number, his
bank and the branch. The transfer will take place in a day or so, whereas in a
traditional method, it takes about three working days. ICICI Bank says that

12. online bill payment service and fund transfer facility have been their most
popular online services.
Credit card customers:
With Internet banking, customers can not only pay their credit card bills
online but also get a loan on their cards. If you lose your credit card, you can
report lost card online.
Railwaypass:
This is something that would interest all the aamjanta. Indian Railways
has tied up with ICICI bank and you can now make your railway pass for local
trains online. The pass will be delivered to you at your doorstep. But the facility
is limited to Mumbai, Thane, Nashik, Surat and Pune.
Investing through Internet banking:
You can now open an FD online through funds transfer. Now investors
with interlinked demat account and bank account can easily trade in the stock
market and the amount will be automatically debited from their respective bank
accounts and the shares will be credited in their demat account. Moreover, some
banks even give you the facility to purchase mutual funds directly from the
online banking system.
Nowadays, most leading banks offer both online banking and demat
account. However if you have your demat account with independent share
brokers, then you need to sign a special form, which will link your two
accounts.
Recharging your prepaid phone:
Now just top-up your prepaid mobile cards by logging in to Internet banking.
By just selecting your operator's name, entering your mobile number and the
amount for recharge, your phone is again back in action within few minutes.
Shopping :
With a range of all kind of products, you can shop online and the payment is
also made conveniently through your account. You can also buy railway and air
tickets through Internet banking.

13. Future challenges of banks in India
The Indian banks are hopefully of becoming a global brand as they are
the major source of financial sector revenue & profit growth. The financial
services penetration in India continues to be healthy. Thus the banking
industry is also not far behind. As a result of this the profit for the Indian
banking industry will surely surge ahead & this growth & expansion pace would
be driven by chunk of middle class population.
The increase in the number of PVT Banks, the domestic credit market of
India is estimated to grow from us $ 0.4 trillion in 2004 to us $ 23 trillion by
2050 3rd. longest banking hub globe by 2040.
Conclusion & Suggestions
Transactions between the individuals would be made more convenient by
the emergence of mondex-type smart cards. On the other hand, bank will lose
fee for personto personmoney transfer and fee for ATM transactions.
Emergering methods for transaction between consumer and company can
be divided three methods:-
1) Expansion of credit card method
2) Digital check and Internet banking
3) Smart card and digital money.
Banks are important in economic developers of the country, each person
will be depending in one or other form on bank, banks are main source for the
creation, issues & circulation of currencies in any nation. Hence in recent
economy every individual is aware of the bank facility & services.

14. Bibliography
www.investopedia.com
www.worldjute.com/ebank.html
www.indianmba.com
www.sbi.co.in
www.wikipedia.com
Book: Fundamental of Banking- Sharma Publications
www.iba.org.in