INSTITUTE OF MANAGEMENT STUDIES
BANARAS HINDU UNIVERSITY
(2016-18)
Synopsis Based on the Topic:
Explore and Assess the Market Potential for SME Lending to Carpet Manufacturing
Units at Bhadohi Centre
Based on Internship Report submitted to SBI in completion of the requirement of Summer
Internship at
State Bank of India
Under the Guidance of- Submitted by-
Mentor I- Prof. H. P. Mathur Gouresh Mishra
Mentor II- Dr. Anurag Singh MBA-IB, Sem.-III
Project Mentor/ Reporting Roll No. 15
Officer at the Bank: Institute of Management Studies,
BHU
Mr. Pankaj Pathak,
Chief Manager, SCB Varanasi
Branch, SBI
Brief Profile of the Organization-
State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services company. It is a government-owned corporation with its headquarters in Mumbai,
Maharashtra. On 1st April, 2017, State Bank of India, which is Indias largest Bank merged with
five of its Associate Banks (State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank
of Mysore, State Bank of Patiala and State Bank of Travancore) and Bharatiya Mahila Bank with
itself. This is the first ever large scale consolidation in the Indian Banking Industry. With the
merger, State Bank of India will enter the league of top 50 global banks with a balance sheet size
of Rupees 33 trillion, 278,000 employees, 420 million customers, and more than 24,000 branches
and 59,000 ATMs. SBIs market share will increase to 22 percent from 17 per cent. It has 198
offices in 37 countries; 301 correspondents in 72 countries. The company is ranked 232nd on the
Fortune Global 500 list of the worlds biggest corporations as of 2016.
The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding,
in 1806, of the Bank of Calcutta, making it the oldest commercial bank in the Indian
Subcontinent. Bank of Madras merged into the other two presidency banks in British
India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn
became the State Bank of India in 1955. Government of India owned the Imperial Bank of India
in 1955, with Reserve Bank of India (Indias Central Bank) taking a 60% stake, and renamed it
the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of
India.
State Bank of India is a banking behemoth and has 20% market share in deposits and loans among
Indian commercial banks.
SBI provides a range of banking products through its network of branches in India and overseas,
including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal
Offices that are located at important cities throughout India.
As on 31 March 2017, Government of India held around 61.23% equity shares in SBI. Life
Insurance Corporation of India is the largest non-promoter shareholder in the company with 8.82%
shareholding.
Shareholders Shareholding
Promoters: Government of India 61.23%
FIIs/GDRs/OCBs/NRIs 11.17%
Banks & Insurance Companies 10.00%
Mutual Funds & UTI 8.29%
Others 9.31%
Total 100.0%
SWOT Analysis
Strengths Weaknesses
The largest bank in the country in terms Huge amount of staff
of market share. Expected to experience high level of
It has a separate act for itself. Thus, a attrition due to retirement of its top
special privilege. management
Biggest branch network in the country Still carries the image of the Old Govt.
First public sector bank to move to CBS. sector bank
Opportunities Threats
Pool in talent to replace the going top Huge amount of NPAs
management to serve the next New bank licenses by RBI
generation Foreign banks that have sophisticated
Make better use of its CRM products
Expansion into rural areas
Research Methodology
i) Objectives of the Project-
To study the preference of Carpet Manufacturers who are following a Banks
Scheme to finance Working Capital.
To determine the most important factor while considering a Banks Scheme to
finance Working Capital requirement.
To determine the reasons which act as hurdles while going for financing the
Working Capital from a Banks scheme.
ii) Research Design-
Exploratory Research
iii) Sampling- Judgmental Sampling.
12 Carpet Manufacturing Units with turnover of more than Rupees One
Crore are selected from Bhadohi city.
iv) Data Collection and Analysis Tool-
Primary Sources of Data: Interview and Questionnaire
Secondary Sources of Data: Websites and Magazines
Instrument of Survey: Questionnaire
Types of Questions: Closed-ended Type
Method of Analysis: Graphical Analysis
Findings & Conclusions
The average turnover of the respondents is approximately Thirty-five Crores.
Seventy-five percent of the respondents believe that Working Capital Financing using a
banks scheme is a good option.
Seventy-five percent of respondents are currently following schemes of banks to finance
their Working Capital.
Ninety percent of respondents believe that Interest Rate is the most important factor while
opting a scheme.
No respondent is financing its Working Capital requirement through a Private sector bank.
Some of the manufacturers do not follow any scheme because of lengthy, complex and
inflexible paper-work, which sometimes also require collateral of land/property.
Suggestions
a) There should be scope of customizing the scheme as per clients requirements.
b) The paper-work should be at their minimum.
c) The turn-around time or the processing duration should be speedier.
d) The banks should keep advising their clients regarding domestic market scenarios, export
scenarios, financial market scenarios etc.
e) There should be a proper helpline or direct contact for solving smaller issues over the
phone.
f) The bank officials should be polite because of a singular bitter experience with one official
spoils the image of the whole bank and SBI has the worst ranking in this case.
g) The manufacturers shall be properly communicated regarding the SBI Exporter Gold Card
Scheme.
Limitations
A lot of Manufacturers have not been approached due to limited time and resources.
Due to unavailability of the turnover of any Carpet Manufacturer over the internet
or in any government office like FIEO and CEPC, selection of companies took
much time and effort.
The biggest constraint while conducting the research was the GSTs roll-out. The
carpet exporters almost denied to answer any kind of question related to their
financial data and information.