Chapter: 3
Working of State Bank of India
Products provided by State Bank Of India
The state bank of India offers products and services which are customized
which are as follows
Personal banking
Agricultural rural
NRI services
International
Corporate banking
Services
Government business
SME
Mutual fund
Loan scheme
General services
PERSONAL BANKING
State Bank of India offers a wide range of services in the Personal
Banking Segment which are indexed here.
SBI Term Deposits
SBI Recurring Deposits
SBI Housing Loan
SBI Car Loan
SBI Educational Loan
SBI Personal Loan
SBI Loan For Pensioners
Loan Against Mortgage Of Property
Loan Against Shares & Debentures
Rent Plus Scheme
Medi – Plus Scheme
Online trading services
Agricultural Products and Services
Stae Bank of India Caters to the needs of agricultural and landless agricultural
labourers through a network of 6600 rural and semi-urban branches. There are
972 specialized branches which have been set up in different parts of the country
exclusively for the development of agriculture through credit deployment. These
branches include 427 Agricultural Development Branches (ADBs) and 547
branches with Development Banking Department (DBDs) which cater to
agriculturists and 2 Agricultural Business Branches at Chennai and Hyderabad
catering to the needs of hitech commercial agricultural projects.
AGRICULTURAL BANKING
State Bank of India’s branches have covered a whole gamut of agricultural
activities like crop production, horticulture, plantation crops, farm mechanization,
land development and reclamation, digging of well, etc. and also provides
Agricultural term loans
Financing of combine harcesters
Land development scheme
Land purchase scheme
Kisan credit card scheme
Micro Finance – Deep Roots In Sbi :
Micro finance is not new to State Bank of India. Bank’s association with non-
government organization (NGOs) or voluntary agencies in extending financial help
can be traced as far back as 1976 well before NABARD introduced SHG-Bank
Credit Linkage Programme as a pilot project in 1992.
Regional Rural Banks:
State bank of India has sponsored 30 RRBs, which operates in 102 districts of 16
states viz. Andhra Pradesh, Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jammu
and Kashmir, Jharkhand, and Karnataka with a network of 2336 branches.
NRI Servives
NRI’s can open the following types of accounts with us:
NRE Rupee Accounts.
Savings Bank.
Current Accounts
Term Deposits (Interest Paid out Quarterly).
Special Term deposits (Interest compounded quarterly).
Non- Resident (Ordinary) Account.
NRO A/cs – Rupee Accounts for crediting income in India.
Foreign Currency Non Resident Accounts.
Fixed Deposits in Pound Sterling, US Dollar, Euro Canadian Dollar and
Australian Dollar.
Resident Foreign Currency Account.
INTERNATIONAL BANKING
International banking services of State Bank of India are delivered for the benefit
of its Indian customers, non-resident Indians, foreign entities and banks through a
network of 131 offices/branches in 32 countries as on 31 July 2009, spread over
all time zones. The network is augmented by a cluster of Overseas and NRI
branches within India and correspondent links with over 522 banks, the world
over. Bank's Joint Ventures and Subsidiaries abroad further underline the Bank's
international presence.
The services include corporate lending, loan syndications, merchant banking,
handling Letters of Credit and Guarantees, short-term financing, collection of
clean and documentary credits and remittances.
The Bank has carved a niche for itself in the Euroland with branches located in
Antwerp, Paris and Frankfurt. Indian banks and corporates are able to avail single-
window Euro services from the Bank's Frankfurt branch.
CORPORATE BANKING
SBI is a one shop providing financial products / services of a wide range for large ,
medium and small customers both domestic and international
It includes;
Working Capital Financing :
Assistance extended both as Fund based and Non-Fund based
facilities to Corporates , Partnership firms , Proprietary concerns
Working Capital finance extended to all segments of industries and
services sector such as IT
Term Loans :
To support capital expenditures for setting up new ventures as also for expansion,
renovation etc.
Deferred Payment Guarantees :
To support purchase of capital equipments.
Corporate Loans :
For a variety of business related purposes to corporates.
Export Credit :
To Corporates / Non Corporates
Strategic Business Units :
a) Corporate Accounts Group (CAG)
b) Project Finance
c) Lease Finance
An exclusive unit providing one s shopping to Corporates
A dedicated set up specialised in financing of infrastructure and other
large projects
Exclusive set up for handling large ticket leases.
Pricing:
SBI's Prime Lending Rates (PLR) are among the lowest
Presently Bank has two PLR's
SBAR for loans payable on demand and upto one year
SBMTLR for loans payable beyond one year.
GOVERNMENT BUSINESS
State Bank of India's linkage with Government business are widespread. No
wonder that out of 9315 branches in India, about 7000 branches are conducting
Government Business. The large network of our branches provides easy access to
the common man to deposit the following Government dues and pension
payments.
It includes,
SBI e-tax
Government Account
Public Provident Fund
Senior citizen Saving Scheme
LOAN SECHEME
SME
State Bank of India has been playing a vital role in the development of small scale
industries since 1956.The Bank has financed over 8 lakhs SSI units in the country.
It has 55 specialized SSI branches, 99 branches in industrial estates and more than
400 branches with SIB divisions.
The Bank finances for Small Business activities which are of special significance to
a large number of people as many of these activities can be started with relatively
lower investment and with no special skills on the part of the entrepreneurs.
