STEPS handles payment messages and reconciliation simultaneously. Security of message transmission has been enhanced. Core Banking:. The facility is available at branches. This network provides across the board benefits by providing nationwide connectivity for its business applications. Name of Director Shri O. Bhatt 1. Chairman Shri S. Bhattacharyya 2. Shri Suman Kumar Bery 4. Ashok Jhunjhunwala. Deva Nand Balodhi 6. Salahuddin Ansari 7. Vasantha Bharucha 8. Shri Arun Ramanathan 9.
Shyamala Gopinath. Source : balance sheet and profit and loss accounts schedule of state bank of India from annual reports of year ending 31st march, Kalam noted that within the next three years, the bank should raise the credit to the farm and agro-processing sector from 10 to 20 per cent of its total loan disbursal.
Agricultural growth, he said, was lagging behind while sectors such as manufacturing and services were showing robust increases. A higher credit disbursal, he said, was essential to hike farm growth to over four per cent as it was a vital requirement for increasing the overall Gross Domestic Product growth to 10 per cent. Unveiling his plan, Mr.
Kalam asked the SBI to allocate Rs. This would include the development of ICT products, software development and software services. The President also advised the bank to create and nurture five rural development projects, on the lines of the bio-fuel project and seaweed project, as it had the potential to provide employment to 50 lakh persons in the rural areas at the least.
Kalam also asked the SBI to adopt and innovatively fund at least one lakh sick units in the small-scale sector to infuse the latest technology and turn them into profitable ventures. Another sector with great potential, Mr. Kalam said, was medical tourism in which the bank could extend funds at competitive interest rates for setting up corporate hospitals which would also serve the rural areas. Kalam also lamented that hassle-free loans were being extended by the SBI to students of only the best engineering colleges, medical colleges and business schools.
Besides, ways should be found to fund the education of those meritorious students who could not get admission to top engineering, medical and B-schools owing to stringent competition, Mr. Kalam said. Readers Readers digest May digest May 07 Golden 07 Golden Award for Award for being among being among the two most the two most trusted trusted banks in banks in India India. Bhatt for his O. Bhatt for his initiative to initiative to reenergize the reenergize the Bank Bank. Bhatt as O.
Bhatt as Indian of the Year Indian of the Year Business for Business for showing how a public showing how a public sector behemoth can sector behemoth can flex its muscle in the flex its muscle in the ferociously ferociously competitive Banking competitive Banking sector sector. Bhatt to Shri O. Bhatt for leadership, for leadership, charisma, inspiration charisma, inspiration and intellectual and intellectual stimulation for the stimulation for the entire SBI team entire SBI team.
State bank of India has been facing great rivalry and major competition with other public sector banks and some of private commercial banks. State bank of India has many banks as art rival. Some of its art rival. Bank of Baroda III. Canara Bank IV. Punjab National Bank V. Bank of India VI. Oriental Bank of Commerce. Here especially some of the public sector and private sector banks are giving hardcore competition to the state bank of India.
So let us have some of the best banks which is also mentioned above and mentioned below in detail. It is providing the core competition to the state bank of India. Especially in lending money, Investment.
But in profit making state bank of India is standing ahead. And when and where social responsibility of concern state bank of India is heading high than any other banks in India. This is also one of the leading banks of India in private sector. This bank is also providing hardcore competition to all the banks as well as state bank of India But we mention earlier that state bank of India is ahead in banking India.
Bank of Baroda is known as BOB. This PSU bank is also providing the tough competition to all other banks in India. The BOB bank is very renowned banks of India today. It is very changed and very professionally working public sector banks BOB has got professional in recent time so. It has to work very hard to achieve position and reputation which are achieved by State Sank of India.
This is why our Housing loan schemes are designed to make it simple for you to make a choice at least as far as financing goes! If you have been putting off purchasing that car, we invite you to go through our Car Loans scheme. Low interest rates, easy repayment options, total transparency, Low processing charges, finance to include vehicle registration charges, insurance and one time road tax. Well, what are you waiting for? Just step in to any of our branches more than that offer Car Loans.
Individual between the age of years of age. Net Annual Income Rs. Salient Features Loan Amount There is no upper limit for the amount of a car loan. It is limited only by your repaying capacity.
A maximum loan amount of 2. Repayment You enjoy the longest repayment period in the industry with us. Repayment period for new vehicles: Maximum of 84 months Repayment period for old vehicles: Up to 84 months from the date of original purchase of the vehicle. NOTE: All these interest rates are subject to change, without notice The revised interest rates are applicable only on fresh deposits and renewal of maturing deposits. Eligible Courses All courses having employment prospects are eligible.
Repayment Tenure Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier. Place of Study In India Abroad. For loans up to Rs. Young officers are being encouraged to take-up management education by way of sponsorship tie-up with the S.
Jain Institute of Management. Once fully implemented, it will not only create a central repository of all employees data but also will make available a variety of services, like online request submission and viewing of individual data etc.
The incentive scheme was launched with the aim of enthusing and motivating the staff members of the Branch so that the bank is placed in a position to face the competition unleashed due to liberalization of economy and maintain its lead over others.
The scheme has been successful in enthusing the staff and garnering Business for the Bank. The Bank also launched Employees Share Purchase Scheme along with the Rights issue with the Objective of providing incentive to Eligible Employees, to stimulate their efforts towards the continued success of the Bank and to provide a Means to attract, reward and retain talent in the Bank, to reward eligible employees as also to encourage equity ownership by them.
The price was fixed at Rs. The Scheme Opened on Such initiatives have helped in increasing the motivation level of staff significantly. This also helped in reducing the age profile of staff and posting of younger staff at the front line. Of this, The total number of persons with disabilities who were employed as on So also, pre recruitment and pre-promotion training programmes are It has assumed greater significance in the world of banking and banks.
It has become a barometer of the health of banks and discussions on any bank is incomplete without the mention of NPA,. NPA has now become heart of the banking Industry, which in turn, is the heart of finance and economy of a nation. Assets of a bank, generally, consist of cash investment, loans and advances, fixed assets and miscellaneous assets.
The resources of a bank are deployed in these assets. The resources consist of capital and reserves, deposits, borrowings and other liabilities. These liabilities are carried at a cost and hence its deployments into various assets should generate enough income to service the cost of the liabilities. In other words, the assets in which the liabilities are deployed should perform in such a way that it generate income to cover the cost of resources and also a surplus, which is a profit of the bank, Thus the performance of assets reflects the health of the banking industry.
Earlier, the buzzword in the banking industry was deposits as it is the basic raw material for the banking industry. The status of the bank was, determined on the volume and size of its. The career of bankers used to depend on the level of deposits achieved by him. Banks were not bothered about the performance of their assets. But from , a sea change was made in the way income of banks was recognized. With the first generation economic and finance sector reforms coming into being, the method of income recognition in the banking sector was changed from accrual basis to cash basis.
An income will be carried to profit and loss account only of it is realized in cash in 90 days. This was like a bolt from blue for deposit — happy bankers. All along, they were simply doing an accounting exercise in debiting a loan account and credit the income account without bothering to see whether it is actually paid by the borrower or not. Thus the performance of an asset was defined for the first time in Indian Banking Industry. This change of income recognition compelled the banks to unrecognized the income if the interest is not received in cash from the borrowers.
Not only is this, depending upon the quality of the assets, various provisions now required to be made on such non performing assets. This had compelled many large banks to declare loss for the first time in history of banking. This had ominous portents for the entire banking industry. This also resulted in dwindling flow of credit of trade and industry.
Thus NPA has the potential to directly affect the economy of the country. Secondary data collection was done through data available from Books, Bank Register and Bank system. Introduction The crucial factor that decides the performance of banks nowadays is the spotting of nonperforming assets NPA.
NPAs are those loans given by a bank of financial institution where the borrower defaults of delays interest of principal payments. Banks are now required to recognize such loans faster and then classify them as problem assets. Close to 16 percent of loans made by Indian banks are NPAs-very high compared to 5 percent in advanced countries. Banks are not allowed to book any income from NPAs.
Income Recognition, Assets Classification and Provisioning IRAC norms were introduced with a view to reflect a true picture of financials of Banks on the basis of their booking the income on actual basis than on accrual basis and also classify assets according to the level of risks attached to them.
No provisioning is required for such loans. NPAs are further sub-classified into substandard, doubtful and loss assets: Sub-standard Assets: Sub-standard assets are those that are non-performing for a period not exceeding two years. Also, in cases where the loan repayment is rescheduled, RBI has asked banks to recognize the loans as sub-standard at least for one year.
Doubtful Assets: Loans which have remained non-performing for a period exceeding two years and which are not considered as loss assets are known as doubtful assets.
Loss Assets: A loss asset is one where loss has been identified but the amount has not been written off wholly or partly. In other words, such an asset is considered uncollectible. There may be some salvage value. This means that banks have to set aside a portion of their funds to safeguard against any losses incurred on impaired loans. Banks have to set aside 10 percent of sub-standard assets as provisions. The provisioning for doubtful assets is 20 percent and for loss assets it is percent.
To identify assets and properties of borrowers and guarantors is a difficult exercise. Constraints of time and adequate staff to supervise and follow-up the large number of accounts that are often scattered over wide areas, also hinders recovery effort.
At times inadequate transport and roads also hinders recovery effort. At times inadequate transport and roads also make it difficult to reach borrowers. Despite the good intentions, it will depend on how fast the measures are implemented. Since their introduction in , DRTs have not been able to make a sound impact due to the lethargy on the implementation front. Unless the Government takes concrete and speedy measures to strengthen the Tribunals and streamline the legal systems, the DRTs will amount to deferring the NPA problem.
The appellate Tribunal has suggested that when the number of pending cases exceeds , Government should appoint another Presiding Officer. This suggestion needs to be acted upon quickly to prevent further delay in the settlement of cases. Further, the Tribunals need to have their own permanent staff instead of depending mainly on persons who are on deputation. Legal Methods-present scenario Delay in disposing of the cases 10 to 20 years are prohibitive and expensive appeals further delay the process of awarding decree.
Suggestions a Need for a time frame for disposal of cases. Act with 2 years rigorous imprisonment. Statutory powers Empowering banks to acquire assets for disposal without intervention of courts. This would work as deterrent against intentional defaulters. In the case of immovable property, recovery continues to be a problem even where the court decree of certificate has been passed. While the Act provides for attachment and sale of property after the court decree has been issued there is no provision to prevent a borrower from disposing off the property while the suit is still on.
DRT Act empowers Recovery Officers to recover the debt through attachment and sale of movable or immovable property of the defendant but does not explicitly mention how to enforce hypothecation, mortgage, etc. Several banks and availed facilities with predetermined criminal intention to Cheat the banks with false and fabricated documents.
As the shares are not transferred in the name of the Bank,. The Indian banking industry has one of the highest percent of NPAs compared to international levels. Inadequate legal provisions on foreclosure and bankruptcy. NPAs are drag on profitability of Banks because besides provisioning, Banks are also required to meet the cost of funding these unproductive assets. NPAs reduce earning power of assets.
Return on assets ROA also gets affected. Hence, they block capital for maintaining capital adequacy. NPAs also attract cost of capital for maintaining capital adequacy ratio. Regulatory and credit rating agencies abroad are also not comfortable with the high level of NPAs of Indian Banks. We personally contact to each and every defaulter and collect the whole data which mention here for more information we attach Questionnaire here.
Collection of data is the essential part of the research. As possible as we collect the more data, view of customer, their opinion their problem and analysis those things and try give them better satisfaction bank as well as customer. Our department is a Process department. State Bank of India have a 6 Branch in Rajkot.
We got a Combine data of whole branch. I have provided near about Account but only NPAs account person can cover and their list are under. Of Borrowers Here, As per above chart if we see that we find that Home loan having more Defaulter. During my Summer Project I recovered Rs. Here, as per above chart more amount in Education loan amount is Rs. As per above show that more amount is recovery from Education Loan Rs. Banks need to have better credit appraisal systems so as to prevent new NPAs from occurring.
However, once NPAs do come into existence, the problem can be solved only if there is enabling legal structure, since recovery of NPAs often requires litigation and court orders to recover stuck loans.
With long-winded litigation in India, debt recovery takes very long time. Banks are now working on utilizing the services of Debt Recovery Tribunals to solve this problem.
The government has also mooted the suggestion of an Asset Reconstruction Company, which will be specialized agency set up for rehabilitating revivable NPAs say, salvaging projects which are inherently sound and recovering funds out of unrevivable NPAs. Budget oriented approach, at times leads to release of credit facilities without ensuring compliance of covenants of sanction.
Basically each branch engaged in lending has to plan for recovery of loans disbursed by it. The manager should be familiar with the prospects of recovery through internal and external factors.
Knowledge about willful defaulters is equally important. Thus three pronged strategy is necessary. The demand for crop loans or for installment of term loans should therefore be computed in a manner conducive to the income flow. Awareness about R. The recovery camps in addition to effecting recovery create a proper climate for recovery. Crop loans can be made repayable over period of one year in the event of crop loss. If the branches prepare village-wise action plans in this regard, it will be still appropriate for the agencies to have a concerted effort towards recovery.
The branches may also compile detailed position of defaulters and share the same with the convener banks and government authorities periodically. Some of the banks have already devised systems of maintaining village dossiers, which comprise names of farmers who do not have good reputation.
A non-willful defaulter is one who generally follows a good cropping pattern and is co-operative to developmental functionaries. He generally cares for his own farming business. On the other hand, a willful defaulter has an attitude of non-co-operation to developmental functionaries.
In present times, when willful default has gained social acceptability, the branches can initiate steps for devising schemes for giving recognition to good borrowers in various meetings or functions organized by the branches.
Further the problems of good borrowers can be studied and their credit needs immediately met. By doing so, a culture of prompt repayment may develop in the villages and doing so would simultaneously discourage willful default. The RBI, since , requires all commercial banks in India to provide information indicator the quality of individual advances in the following eight categories: 1 Satisfactory: Conduct is satisfactory the account of the borrowing firm is in order in all respect and its safety is not in doubt.
The units, though currently sick, are viable. The RBI has classified problem loans with the banks in three categories. This was to promote compromise settlement in small sector viz. According the scheme, applicable to NPA accounts which are at least 3 years old at , was effective up to 30 sept.
There is a case for extending the deadline and matching these guidelines applicable for compromise settlement in medium and large sectors. This is precisely the reason why many decrees obtained by the banks have merely remained on paper for want of effective execution thereof.
Recently a three-tier body, viz. It is yet to be operationalised CDR consists of Forum, group and Cell. While the forum evolves broad policy-guidelines the group takes decisions on the proposals recommended by the Cell. The CDR covers only multiple banking accounts enjoying credit facilities exceeding Rs. The CDR is a voluntary system on debtor creditor agreement and inter-creditors agreement.
While the arrangements under CDR seem to be feasible from the debt restructuring perspective, its success depends upon the cooperation extended by borrowers and bankers, on one hand, and understanding among banks and FIs on the other. Doubts are raised about the implementation of these agreements taking into the present working of the loan consortium arrangement. CDR though is not directly linked with NPA recovery, is aiming at preserving viable corporate affected by certain internal and external factors, and minimizing the losses to the creditors and other stakeholders through a restructuring programme.
Even though the CDR system will be applicable only to standard and sub-standard accounts potentially viable cases of NPA, are also to get priority. Both suit filed and mensuit filled MCS Lokadalats meet at different places for the convenience if banks and borrowers on the given date of the lokadalats meeting, both the banker and borrower should be present.
After looking into the evidence and listening to both parties, the lokadalats works out an acceptable compromise. Thereafter, lokadalat issues a recover certificate, which will enable the bank in obtaining decree from the concerned court. This arrangement shortens the period in obtaining a court decree, which is normally awarded after taking a much longer period.
Along with this, efforts should be made to give wide publicity to the scheme, besides educating both banks and borrowers about Lokadalats. There are no court fees involved when fresh disputes are referred to it. It can take cognizance of any existing suit in the court as well as look into and adjudicate upon fresh dispute. In view of this unique advantage the government is thinking of strengthening them and raising the monetary limit set for referred cases.
It is observed that banks have not taken adequate advantage of Lokadalats for compromise settlement of their NPAs. No cut off date is suggested since Lokadalat is an on going process. But this may contribute to increasing delays in settlement of cases. Most Lokadalats should be set up in different parts of country to set up the recovery procedures. There is a suggestion for setting up coordination committees for DRTs a Debt Recovery Appellate Tribunal with representations from major banks and financial institutions.
Though the recovery through DRTs is at present less than two percent of the claim amount, banks FIs have to depend heavily on them, efforts are as to amend the recovery Act to assign more power to DRT. More importantly, the borrowers tendency to challenge the verdict of the Appellate Otherwise, early recovery efforts through DRTs would be futile.
Secondly, training of residing officers of Tribunals about the intricacies of banking practices is very essential. Further, the number of Recovery officer has to be enhanced in every DRT for effective recovery.
Finally, banker and FIs have to come forward to provide liberal help to DRTs to equip them in terms of infrastructure, manpower,etc.
It has been announced in the Union Budget for that the Govt. Besides, the Govt. The cases involving Rs. The requirement is far higher than the number of DRTs available.
RBI also publishes a list of borrowers with outstanding aggregating Rs. It is our experience that these measures had not contributed to any perceptible recoveries from the defaulting entities. However, they serve as negative basket of steps shutting off fresh loans to these defaulters. I strongly believe that a real breakthrough can come only if there is a change in the repayment psyche of the Indian borrowers.
On their part RBI and the Government are contemplating several supporting measures including legal reforms, some of them I would like to highlight. It would negotiate with banks and financial institutions for acquiring distressed assets and develop markets for such assets..
Government of India proposes to go in for legal reforms to facilitate the functioning of ARC mechanism. Therefore, simultaneously it is required to make radical changes in bankruptcy and recovery laws and procedures. The total liability to the banking system would remain unchanged. CIBIL is under way. RBI is considering the recommendations of the S.
The main This, I hope, would prevent those who take advantage of lack of system of information sharing amongst lending institutions to borrow large amounts against same assets and property, which had in no small measure contributed to the incremental NPAs of banks.
It is working out a proper definition covering such classes of defaulters so that credit denials to this group of borrowers can be made effective and criminal prosecution can be made demonstrative against willful defaulters. The Group is finalizing its recommendations shortly and may come out with guidelines for effective control and supervision by bank boards over credit management and NPA prevention measures.
The report of the group is now published and discussed in another page. This would be strictly for internal monitoring. Loans and advances overdue for less than one quarter and two quarters would come under this category. Data regarding such accounts will have to be submitted by banks to RBI. However, special mention assets would not require provisioning, as they are not classified as NPAs.
Nor are these proposed to be brought under regulatory oversight and prudential reporting immediately. The step is mainly with a view to alerting management to the prospects of such an account turning bad, and thus taking preventive action well in time. This will help banks look at accounts with potential problems in a focused manner right from the onset of the problem, so that monitoring and remedial actions can be more effective. Once these accounts are categorised and reported as such, proper top management attention would also be ensured.
Borrowers having genuine problems due to temporary mismatch in funds flow or sudden requirements of additional funds may be entertained at the branch level, and for this purpose a special limit to tide over such contingencies may be built into the sanction process itself.
This will prevent the need to route the additional funding request through the controlling offices in deserving cases, and help avert many accounts slipping into NPA category. While sufficient precaution is being taken at the time of appraisal of projects, disbursement of loans and follow-up, yet some projects fail to generate adequate resources to repay dues and lead to defaults.
Some of these units can be revived and rehabilitated with need base relief and concessions by the Corporation. However, at times, units are not in a position to revive due to, long term problems and structural deficiencies. It would be appropriate for Corporation to find an exit route as early as possible. A-1 dated 31st March,, which contained detailed guidelines and formats.
The main purpose of the policy was to liquidate NPAs in time bound manner, which had grown to Rs. The policy did not have the provisions for settlement especially in the cases where disbursement was made after 31st March Other Highlights: Its credit-deposit ratio was 47 per cent in which increased to 62 per cent in Its capital adequacy ratio was In fact, it has been a pace setter for other banks in rural banking.
It has been helping in providing rural finance in the following ways: 1. In fact, it opened branches during the stipulated period. Since then it has kept up the tempo of branch expansion with the result that at the end of June, , it had 4, branches in rural areas which formed about 46 per cent of its total branches in the country.
Remittance Facilities: With the spread of a network of branches in rural areas, the SBI has been providing cheap remittance facilities to State and Central Co-operative Banks, Land Development Banks, farmers and traders. Help to Co-operative Banks: The SBI has been of great help to co-operative and land development banks engaged in providing rural credit. It grants short term credit to the State and Central Co-operative Banks against Government securities at a concessional rate.
It also grants advances to these banks for financing marketing of agricultural produce, distribution of fertilisers, and procurement of food grains.
It also gives advances to them for a short-term on the guarantee of the State Government, pending flotation of debentures by them. Credit to Co-operative Marketing and Processing. Societies: It provides direct credit to co-operative marketing and processing societies for working capital requirements.
Similarly, the Bank grants loans to co-operative processing societies engaged in the processing of sugar, jute, cotton, etc. Finance for Irrigation: The Bank has been extending assistance by way of term loans to various minor irrigation projects, command area development schemes, dug-well and tube-well sinking projects, etc. Besides, under the Special Project Agriculture sponsored by the Rural Electrification Corporation for energisation of pump sets.
The Bank has also been financing drip irrigation scheme which involves application of adequate water to the plant root at definite intervals, thereby ensuring efficient management of limited water resources. Modernisation of Farm Practices: The SBI provides finance to farmers from raising agricultural productivity through modernisation of farm practices. Wasteland Development: The Bank extends credit facilities to farmers for reclaiming wastelands under social forestry schemes, for raising nurseries and planting trees to meet the raw material requirements of fuel and fodder.
It also provides credit for setting up plantations in order to meet the raw material requirements of user industries, joint sector undertaking, companies, co-operatives and individual entrepreneurs.
Financing of Warehouses: The establishment of warehouses helps in the marketing of agricultural produce by farmers. The SBI has been associated with development of warehouses in a number of States.
It also gives advances to farmers against warehouse receipts thereby preventing distress sales on the part of growers and provides a cushion against violent fluctuations in the prices of farm produce.
Warehouses help in storing farm products and prevent their wastage. Financing of Fisheries: The SBI finances fisheries schemes for increasing fish production to meet the domestic demand and export potential. Financing of Other Activities: The SBI also provides financing assistance to special agricultural activities such as animal husbandry, cattle breeding, dairy farming, piggery, poultry farming, horticulture, sericulture, vermi-culture, tissue-culture and mushroom cultivation and high-tech agriculture.
Under this scheme, the Bank adopts a village, fixes a target and meets the entire financial needs of the village including its farmers, artisans and others. The aim is to finance all-round development of agriculture. It has sponsored 30 RRBs in 14 States covering 76 districts with a network of 2, branches. In the second phase, 9 RRBs have been covered. Conclusion: The State Bank has been a pioneer in agricultural finance in the country.
It has been providing direct as well as indirect credit facilities to farmers, artisans, marginal farmers, and weaker sections of rural India. The type of financial assistance being rendered to them is as under: 1.
On the one hand, it has been financing new ventures of industrial groups with a good track record and on the other, new generation entrepreneurs with viable ventures. The Bank has been making loans and advances to such industrial groups as iron and steel, coal, electricity generation, chemicals, cement, petroleum, engineering, cotton textiles, food processing, gem and jewellery, paper products, etc. Its main thrust towards this direction has been to extend nursing assistance to the sick units, mainly under the aegis of the Board for Industrial and Financial Reconstruction BIFR.
So far, out of the rehabilitation packages drawn up for assisted units under the direction of BIFR have been put in operation, and 51 companies ordered to be wound up during the year. The Bank also sanctioned Bid Bond guarantees to enable 8 companies bid for Basic and Cellular services during Financing of Small Scale Industries: The State Bank has been meeting the growing needs of the small scale sector by providing credit facilities on liberal terms.
Its financial assistance covers all stages of manufacturing, viz. It also covers expansion and modernisation of plants and equipment. Under this scheme, it provides interest free loans, repayable over a period of years with an initial starting period. Assistance up to Rs. Where project cost exceeds Rs. These Cells are also actively engaged in the work relating to technology upgradation.
Officials of the Cell are trained to act as nodal points for collecting and making available necessary information relating to the industry, including techno-economic aspects. The Bank has also initiated steps for upgradation of technology of selected groups of small scale industries to make them more competitive.
This Group directs and guides programmes aimed at facilitating technology upgradation in the small scale industrial sectors. For this purpose, the Bank has set apart Rs. Upgradation of products and processes are attempted in these programmes to bring about quality control, increased productivity and efficiency.
The Bank offers packages of assistance to units which wish to implement the technological upgradation programmes. The main objective of the Bank has been to increase opportunities for self-employment in the tertiary sector. Conclusion: The above analysis reveals that the State Bank has been playing a vital role in financing large scale industries. But its contribution in supplying loans and advances, in providing equity funds, in modernisation, in helping to supply inputs, in marketing, etc.
No other commercial bank in the country is in a position to compete with it. Assistance to Weaker Sections of Society: The Bank has been carrying out a number of schemes to assist the weaker sections of society so that they are provided gainful employment opportunities and are able to raise their income levels. It assists the rural poor in acquiring income- generating assets.
Since the inception of the Programme in the cumulative disbursement of the Bank up to March, amounted to Rs. The scheme aims at encouraging the unemployed and underemployed urban poor living below the poverty line in metropolitan areas, cities and towns with population exceeding 10,, to take up self- employment ventures with the help of Bank loans and Government subsidy.
The Bank financed 68, beneficiaries to the tune of Rs. Financial assistance is provided under these Programmes for self- employment and rehabilitation of the beneficiaries. As at the end of March , aggregate financial assistance rendered by the Bank under various community services programmes amounted to Rs. Under the Point Programme on minorities welfare, the Bank disbursed Rs.
Area Development: The State Bank has been successfully carrying out its responsibility of the development of districts under the Lead Bank Scheme. As on March , the Bank had lead responsibility in districts in different parts of the country where it had been acting as a catalyst agent of banking and rural development.
Development of Backward Areas: The Bank lays special emphasis on the balanced development of different regions, with greater emphasis on the development of backward districts. The Bank has also been assisting in the creation of self-employment opportunities as well as industrial development of backward districts in the country. About 50 per cent of the small scale industrial units and 55 per cent of the transport operators assisted by the Bank are in the backward districts.
Out of the Entrepreneurial Development programmes organised by the Bank so far, have been conducted in the backward districts. Export Finance: The Bank has been providing larger credit facilities to exporters and also promotional and development support to them at the national level. The total export credit provided by the Bank amounted to Rs.
Among the promotional measures taken by the Bank was the creation of an Export Promotion Fund, with an allocation of Rs. The Bank has been actively associated with a number of Export Promotion Councils relating to different commodities and with the Ministry of Commerce, Government of India in streamlining the procedures and to render speedy and smooth service to exporters. Further, the State Bank is the sole commercial bank nominated by the Government of India for implementing financial transactions under the lines of credit extended by the Government of India to various countries.
Merchant Banking: The State Bank has been rendering merchant banking services to its customers since In fact, the Bank is a pioneer in the field of merchant banking and house finance.
FACS on 30 July, as a new subsidiary. The SBI has been allotted the west zone for factoring. The customer prepays up to 80 per cent of the value of the invoices immediately. All types of business organisations engaged in either manufacturing or trading are eligible for factoring. As such,-it has been focusing attention on development of job knowledge, skills and appropriate attitudes of its employees. Manpower Planning, Performance Appraisal System, Career Planning and Development, Organisation Development, and Training and Research are the various tools used in the process of development of human resources.
The Bank lays more emphasis on training its employees at all levels and prepares them to meet the growing needs of the Bank in the context of changing market scenario and environment. In February , it started the Institute of Information and Communication Management in Hyderabad to spread computer education and information, and communication management skills.
In addition to the above institutional training system, the Bank also has in-branch training arrangements in the form of visiting faculty and on-site training. Customer Services: It has been the constant endeavour of the Bank to improve its service to the satisfaction of customers. It has Customer Service Committees and Customer Councils at almost all branches in important towns and cities.
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