A study of investment and wealth management business of State Bank of India

CHAPTER 1

INTRODUCTION
Wealth management is a branch of financial services dealing with the investment needs of
affluent clients. These are specialized advisory services catering to the investment
management needs of affluent clients. Wealth management is a consultative process. It
involves consultations with affluent clients, discussions on their financial needs and goals.

Wealth management is more than just investment advice: It can encompass all parts
of a person's financial life. Instead of attempting to integrate pieces of advice and various
products from multiple professionals, high net worth individuals are more likely to benefit
from a holistic approach. In this method, a single manager coordinates all services needed
to manage their money and plan for their own or their family's current and future needs.

Many wealth managers can provide services in any aspect of the financial field, but some
choose to specialize in particular areas. This may be based on the expertise of a specific
wealth manager, or the primary focus of the business within which the wealth manager
operates. In certain instances, a wealth management advisor may have to coordinate input
from outside financial experts as well as the client's own service professionals (for
example, an attorney or accountant) to craft the optimal strategy to benefit the client. Some
wealth managers also provide banking services or advice on philanthropic activities.

A wealth management advisor needs affluent individuals, but not all affluent individuals
need a wealth management advisor. This service is usually appropriate for wealthy
individuals with a broad array of diverse needs.

1
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

1.2 WEALTH MANAGEMENT OF STATE BANK OF INDIA

The country’s largest bank, the State Bank of India (SBI), has launched premium banking
services for the select few individuals. SBI has introduced SBI Wealth with a host of
benefits for the account holders. For example, for a personalized banking experience, a
dedicated and experienced relationship manager will be assigned for all the banking needs.
There will be customer relationship executives available for pickup and delivery of
documents as a part of the doorstep banking. As an SBI Wealth account holder, the bank
will offer Signature Debit and Credit Cards offering life style benefits and accelerated
reward points to the account holders. Then there will be extensive range of rewarding
products and services including an all-new enhanced Savings Account and SBI Wealth
Visa Signature Debit Card (no charges), Lifestyle Privileges, Loan Approvals on priority,
Visa Signature Cards with additional Privileges, and lucrative investment options in the
SBI Wealth relationship including SBI fixed deposits.
The bank will provide investment products across various asset classes
delivered through an Open Investment Platform. One may even invest in Direct Equity and
Fixed Income Services through their partners. For protection needs, one can purchase Life
insurance and General Insurance products.

2
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

1.3 STATEMENT OF THE PROBLEM

The present study of wealth management and invest business of State Bank of India
is revised the explore the solution of the following problem
• Whether the State Bank of India are successful in investment business as
well as wealth management business.
• State Bank of India provides perfect investment and wealth management
schemes
• How to invest in State Bank of India wealth (SBI wealth) and State Bank
of India mutual fund investment. In respect of growth of investment in bank
schemes and wealth management and also the investors are come to know
the financial position of the State Bank of India. Hence the research is as
follows the topic entitled “A study of investment and wealth
management business of State Bank of India”

3
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

1.4 OBJECTIVES OF THE STUDY

The present research work had been undertaken with prime object to study the State
bank of India wealth scheme of investment; prime objective is supported by the
following objectives.

1. To understand the personalized and diversified banking products and services,

topped up with best-in-class lifestyle benefits

2. To understand the conceptual background of banking industry.

3. To know the profile of State Bank of India

4. To know the policy of state Bank of India for the customers

5. To explore the opportunities and challenges of State Bank of India.

1.5 NEED OF THE STUDY

SBI benchmarking ourselves against international standards and best practice in

terms of product offering, technology, service offerings and compliance.

To determine the customers perception towards the State bank of India and their
expectations from the bank. And to understand the advanced service offerings
about wealth schemes and benefits.

1.6 SCOPE OF THE STUDY

A big boom has been witnessed in bank in recent times. A large number of new
players have entered in the market a try to gain market share in this rapidly
improving market. In focus and the various segments that it cares to. The study
then goes on to evaluate and analyze the findings so as to present a clear picture of
trends in the banking sector.

4
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

RESEARCH METHODOLOGY
Research methodology is way to systematically solve the research problem. It is a plan of
action for a research project and explains in detail how data are collected and analyzed.
Research Methodology may be understood as a science of studying how research is done
scientifically. It can cover a wide range of studies from simple description and investigation
to the construction of sophisticated experiment.
A clear objective provides the basis of design of the project. Since the main objective of
this study is to identify the customers preference, expectation and perception. It was
decided to use descriptive research design include, surveys and fact-finding enquires of
different kinds, which found out to be the most suitable design in order to carry out the
project.

Meaning of research
Research is an art of scientific investigation. The advanced learner’s dictionaries of current
English lay down the meaning of research as, “a careful investigation (or) inquiry
especially through search for new facts in any branch of knowledge”. Reedmen and Mary
research as a “systematic effort to gain knowledge”.
Research design

A research design is planning that specific the objective of the study, method to be adopted in
the collection of the data, tools in analysis of data and helpful to frame hypothesis. “A research
design is the arrangement of condition for collection and analysis of data in a manner that aims
to combine relevance to research purpose with economy in procedure”

Research design is needed because it facilitates the smooth sailing of the various project
operation, thereby making the project efficient as possible yielding maximal information with
minimal expenditure of effort time and money. Also, it minimizes bias and maximizes the
reliability of the data collected.

Methods of data collection

5
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Data collection is systematic method for collecting and measuring information from multiple
sources to get a comprehensive and accurate description of the study. Accurate data collection s
important for preserving the integrity of research. Making informed decisions and the ensuring
quality assurance. The present study is based on seconda5ry data of State Bank of India.

Secondary Data Source

Secondary data was collected by different national and international journals. Textbooks,
magazines, newspapers and the websites have been referred. Online information from main
website of the State Bank of India and other pages and databases were also used foe the purpose
of secondary data collection. Some national and international newspapers were referred for the
study.

6
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

CHAPTER 2

COMPANY PROFILE

State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services statutory body headquartered in Mumbai, Maharashtra. SBI is the 43rd largest bank in
the world and ranked 221st in the Fortune Global 500 list of the world's biggest corporations of
2020, being the only Indian bank on the list. It is a public sector bank and the largest bank in
India with a 23% market share by assets and a 25% share of the total loan and deposits market.

State Bank Bhavan, Nariman Point, Mumbai

Formerly Imperial Bank of India

Type Public Sector Undertaking

Traded as • NSE: SBIN

• BSE: 500112
• LSE: SBID
• BSE SENSEX Constituent
• NSE NIFTY 50 Constituent

ISIN INE062A01020

Industry Banking, financial services

7
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Predecessor • Imperial Bank of India

(1921 – 1955)
• Bank of Calcutta
(1806 – 1921)
• Bank of Bombay
(1840 – 1921)
• Bank of Madras
(1843 – 1921)

Founded • 2 June 1806

Bank of Calcutta
• 15 April 1840
Bank of Bombay
• 1 July 1843
Bank of Madras
• 27 January 1921
Imperial Bank of India
• 1 July 1955; 65 years ago,
State Bank of India

Headquarters State Bank Bhawan, M.C. Road, Nariman Point, Mumbai,

Maharashtra, India

Number of 22,141 Branches, 58,555 ATMs

locations

Area served Worldwide

Key people Dinesh Kumar Khara

(Chairman)

Products • Retail banking

• Corporate banking
• Investment banking
• Mortgage loans
• Private banking
• Wealth management
• Credit cards
• Finance and Insurance

Revenue ₹368,010.6492 crore (US$52 billion) (2020)

8
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Operating ₹75,105.2876 crore (US$11 billion) (2020)

income

Net income ₹11,439.4023 crore (US$1.6 billion) (2020)

Total assets ₹4,197,492.3443 crore (US$590 billion) (2020)

Total equity ₹250,167.6630 crore (US$35 billion) (2020)

Number of 249,448 (March 2020)

employees

Parent Government of India

Subsidiaries • SBI Life Insurance Ltd

• SBI Cards and Payment Services Ltd
• SBI General Insurance (70%)
• Jio Payments Bank (30%)
• Yes Bank (30%)
• Andhra Pradesh Grameena Vikas Bank (35%)
• Kaveri Grameena Bank (35%)

Rating • Baa-2 Moody's

• BBB-F3 Fitch
• BBB-A3 S&P

Website [Link]

The bank descends from the Bank of Calcutta, founded in 1806 via the Imperial Bank of India,
making it the oldest commercial bank in the Indian Subcontinent. The Bank of Madras merged
into the other two presidency banks in British India, the Bank of Calcutta and the Bank of
Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India in
1955. Government of India took control of the Imperial Bank of India in 1955, with Reserve
Bank of India (India's central bank) taking a 60% stake, renaming it State Bank of India.

9
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Organizational Structure of the State Bank of India:

The SBI is not a bank wholly owned by the Government. It is a corporate body with an
authorized share capital, of Rs.1000 crore and paid-up capital of Rs.526 crores of shares of
Rs.10 each as on 31 March, 1998. The apex body in the organizational structure of the SBI is
the Central Board of Directors, which consists of a Chairman, two Managing Directors and 17
Directors appointed/elected under Section 19(1) of the State Bank of India Act, 1955.

The Chairman and the Managing Directors are appointed by the Central Government in
consultation with the RBI for a period not exceeding five years. Out of 17 Directors 6 are ex-
officio representing different organizations, 4 are elected by the shareholders, 6 are nominated
by the Central Government and one is nominated by the RBI. To manage the different
Departments of the Bank, there is a Central: Management Committee which has ten members
consisting of the Chairman, two Managing Directors and seven Deputy Managing Directors.

The Chairman is the ex-officio member of the Committee. All the Deputy Managing Directors
function under the overall charge of the Managing Directors. During 1995-96, several
organizational changes have been carried out in the areas of structure, systems and-strategies
of the SBI.

Lean and integrated top management now consists of the Chairman, group executives for
National Banking Group, Corporate Banking Group,
International Banking Group and Associates and Subsidiaries Group and four staff
functionaries in charge of financial, credit, human resources and technology management, and
inspection and audit.

Three Strategic Business Units (SBUs) have been set up under the Corporate Banking Group
to focus attention on very large corporate customers, lease finance and project finance. They
are the Corporate Accounts Group, Leasing Group and Project Finance Group. Each SBU has
been given profit responsibility.

A committee approach has been adopted, both at the apex and circle levels for sanctioning
large advances. For this purpose, Central Office Credit Committee and Circle Credit

10
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Committees have been set up. They have been delegated higher financial powers to ensure
faster decision-making of credit disposals. At the circle level, Commercial and Development
and Personal Banking Networks have been created under the charge of General Managers to
cater to the client-specific banking needs.

Founder of State bank of India

Maharaja Madho Rao Scindia

Five years later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been established in
1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The bank had been
the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new bank's first manager
was Jall N. Broacha, a Parsi.

Chairman of State Bank of India

11
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Dinesh Kumar Khara, managing director at State Bank of India (SBI), takes over as SBI's
chairman effective today. The Government appointed Dinesh Kumar Khara as chairman of
the bank for three years effective from October 7.

Employees

State Bank Institute of Credit and Risk Management, Gurugram

SBI is one of the largest employers in the country with 209,567 employees as on 31 March 2017,
out of which 23% were female employees and 3,179 (1.5%) were employees with disabilities. On
the same date, SBI had 37,875 Scheduled Castes (18%), 17,069 Scheduled Tribes (8.1%) and
39,709 Other Backward Classes (18.9%) employees. The percentage of Officers, Associates and
Subordinates was 38.6%, 44.3% and 16.9% respectively on the same date. Around 13,000
employees joined the Bank in FY 2016–17. Each employee contributed a net profit
of ₹511,000 (US$7,200) during FY 2016–17.

12
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

RECOGNITION & AWARDS

[Link] Transaction Bank in India by “The Asian Banker” for the second time in a row.

2.” The Best Trade Finance Bank (India)-2019” for the eighth consecutive year by Global Finance
Magazine.

3.“Green Bond Pioneer Award” for being the largest new emerging markets Certified Climate
Bond issuer of 2018 by Climate Bond Initiative.

4.‘Best MSME Bank Award-Large bank’ by CIMSME.

[Link], our digital initiative, won the “Mobile Banking Initiative of the Year - India” at the
Asian Banking and Finance Retail Banking Awards, Singapore and ET BFSI Innovation Awards.

[Link] the Asian Banker Financial Technology Innovation Awards 2018 SBI received awards in a
number of categories including The Risk Data and Analytics Technology Implementation of the
Year for OFSAA.

Other Achievements of the State Bank of India:

1. 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.

Some of the schemes are:

(i) Integrated Rural Development Programme:

The Bank is actively engaged in alleviating rural poverty under the Government sponsored
IRDP. It assists the rural poor in acquiring income generating assets. Since the inception of
the Programme in 1980 the cumulative disbursement of the Bank up to March, 1996 amounted
to Rs.2,195 crores covering 61.55 lakh beneficiaries.

13
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

(ii) Differential Rate of Interest (DRI) Scheme:

Under this scheme, the Bank has been providing financial assistance at a concessional rate of
interest of 4 per cent to persons belonging to the weaker sections of society who are engaged
in productive activities. At the end of March, 1996, the Bank’s DRI advances stood at Rs.1,443
crores. Over 60 per cent of the Bank’s DRI advances were made to SC/ST and women
beneficiaries, exceeding the stipulation of 40 per cent laid down by the Government involving
Rs.248 crores.

(ii) Twenty-Point Programme:

The Bank has achieved considerable progress under the restructured Twenty-
Point Programme which mainly aims at raising agricultural productivity, eradication of rural
poverty and ensuring justice to the underprivileged sections of the society.

As at the end of March 1996, the Bank’s aggregate loans under the
Programme stood at Rs.4,142 crores covering 95 lakh borrowal accounts. The major chunk of
Bank’s assistance has been in the spheres of attack on poverty, needs of SC/ST borrowers,
strategy for rainfed agriculture, better use of irrigation water, bigger harvests, energy for
villages, etc.

(iii) Scheme for Urban Micro Enterprises:

The Scheme which is a component of the Jawahar Rozgar Yojana, was introduced in 1990.
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 10,000, to
take up self-employment ventures with the help of Bank loans and Government subsidy.

(iv) Prime Minister’s Rozgar Yojana:

14
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

The Prime Minister’s Rozgar Yojana was launched on 2nd October 1993 to help educated
unemployed youth in establishing self-employment ventures. The Bank financed 68,889
beneficiaries to the tune of Rs.375 crores during 1995-96.

(v) Total Assistance to Weaker Sections:

At the end of March 1996, the Bank’s total advances to weaker sections such as SC/ST, small
and marginal farmers, landless laborer’s, including beneficiaries under IRDP and DRI
Schemes amounted to Rs.3,886 crores.

2. Community Services Programmes:

The Bank has a number of Community Services Programmes which aim at closer
identification with various strata of society, especially the weaker ones, such as women, slum-
dwellers, physically handicapped, victims of natural calamities, ex-prisoners, orphans, ex-
defense personnel etc.

Financial assistance is provided under these Programmes for self-employment and

rehabilitation of the beneficiaries. As at the end of March 1996, aggregate financial assistance
rendered by the Bank under various community services programmes amounted to Rs.317
crores spread over 11 lakh beneficiaries. Under the 15-Point Programmed on minorities
welfare, the Bank disbursed Rs.372 crores to 5 lakh beneficiaries in 41 identified districts.

3. 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 1996, the Bank had lead responsibility in
113 districts in different parts of the country where it had been acting as a catalyst agent of
banking and rural development. Under the Annual Action Plans for 1995-96, the Bank had
extended Rs.464 crores as credit and under the Annual Action Plans for nonlead districts, the
credit extended amounted to Rs.3,052 crores.

4. Development of Backward Areas:

15
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

The Bank lays special emphasis on the balanced development of different regions, with greater
emphasis on the development of backward districts. More than 46 per cent of the Bank’s direct
agricultural advances are in backward districts, covering over 51 per cent of the borrow
accounts.

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. Of the small business units financed by the Bank, 50 per cent are in
backward areas, amounting for 48 per cent of the total quantum of assistance provided to the
small business sphere. Out of the 187 Entrepreneurial Development programmes organised by
the Bank so far, 118 have been conducted in the backward districts.

5. 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. 6,955 crores as at the end of March, 1996. The share of export credit in Bank’s
total credit was 12.4 per cent which was higher than the export credit target of 10 per cent laid
down for banks by the RBI.

Among the promotional measures taken by the Bank was the creation of an Export Promotion
Fund, with an allocation of Rs.1 crore out of the Bank’s profits in 1987. 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. The Bank also administers Gold and Silver Jewellery Export
Promotion Schemes as a canalising agency on behalf of the Government of India.

16
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

6. Merchant Banking:

The State Bank has been rendering merchant banking services to its customers since 1972. But
it was with the setting up of SBI Capital Markets Ltd. in 1986, SBI Mutual Fund in 1987, SBI
Home Finance Ltd. and SBI Funds Management Ltd. that its merchant banking activities have
spread considerably. These subsidiaries promote merchant banking, equipment leasing,
venture capital finance, portfolio management services, hire purchase activity, housing finance
activities, etc. In fact, the Bank is a pioneer in the field of merchant banking and house finance.

7. Development of Debt Market:

With a view to further develop the debt market in India, the Bank has set up a subsidiary called
the SBI Gilts Ltd., to act as a Primary Dealer in Government securities. During 1995-96, the
Bank acquired controlling interest in Dis-court and Finance House of India Ltd.

8. Factors and Commercial Services:

The Bank launched the SBI Factors and Commercial Services Pvt. Ltd. (FACS) on 30 July,
1991 as a new subsidiary. The SBI has 54 per cent shareholding in the subsidiary, the Small
Industries Development Bank of India 20 per cent, Union Bank of India 10 per cent, State
Bank of Indore 6 per cent and State Bank of Saurashtra 10 per cent. The SBI has been allotted
the west zone for factoring.

The SBI FACS performs the function of discounting the bills of its customers by buying
invoices on a continuing basis. The customer prepays up to 80 per cent of the value of the
invoices immediately. The SBI FACS maintains the sales ledger and performs the function of
realising the invoices purchased. All types of business organizations engaged in either
manufacturing or trading are eligible for factoring.

17
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

9. Human Resources Development (HRD):

The State Bank has been a pioneer in the field of HRD. 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, Organization 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.
For this purpose, the Bank has two training Staff Colleges at Hyderabad and Gurgaon, and the
Institute of Rural Development, Hyderabad and 55 Staff Training Centres.

In February 1990, 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.

10. Customer Services:

It has been the constant Endeavor 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. The ‘Speed line’ system introduced in 1986 now covers 209
centers. It expedites collection, remittances and transfer of accounts of customers. The Bank
operates eight Customer Service Centers in different parts of the country which receive and
dispose customer complaints pertaining to all public sector banks at the centers.

Tele-Service has been introduced at select branches to enable customers to obtain information
over telephone.

18
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

11. New Schemes for Customers:

The Bank has been a pace setter in introducing several new schemes for the benefit of its
customers. There are a number of schemes for grant of loans to purchase consumer durables
such as Big Buy, SCO-OM and Computer Loan. The State Bank Card and the High Value
Card Scheme have created a place in the market.

There is the Travel-cash Scheme for granting loans to individuals for meeting travelling
expenses. Under the ‘Cash-key’ Scheme, individuals making deposits in the form of
Term/Special Term Deposits, Cash Certificates, Recurring Deposits with the Bank and in
Magnum Certificates of SBICAP can be granted simultaneous overdraft facility for drawing
up to 75 per cent of the amount of such deposit.

In order to cover investment counseling and portfolio management activities under a ‘single
window service’, Personal Investment Cells have been established in a number of metropolitan
and urban branches. On 4 May, 1992, the SBI launched the Stock-invest Scheme.

SBINET facility has been extended to all main branches, zonal offices and regional offices of
the Bank. 72 branches have been connected by SWIFT. A fast cheque collection scheme has
been introduced at major centres. ATM has been installed at Mumbai, New Delhi, Kolkata,
Bangalore, Patna and Jamshedpur.

19
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

SWOT ANALYSIS OF STATE BANK OF INDIA

SWOT Analysis is a proven management tool that helps organizations such as State
Bank of India (SBI) to assess the market of SBI and its success against rival companies.
State Bank of India (SBI) has been one of the leading Stationery companies.

SBI does have its origins in 1806, but was later converted under different names, and
finally SBI was created in Parliament on May 1955. Around the year 1959, SBI took
over 8 state-owned banks and, since then, has started to develop in the service of citizens
at various economic rates.

STRENGTHS

• SBI is India’s biggest bank in terms of market share, sales, and reserves.
• SBI has been ranked in the Fortune Global 500 list.
• According to recent reports, the bank has more than 22141 branches and 58555
ATM’s.
• The bank is active in 36 countries involved in currency traders around the world.
• SBI has the first-mover edge of commercial banking facilities.
• SBI recently updated its vision and mission statements indicating an indication of
inclination towards new-age banking services.
• State Bank of India has a huge employee base of 257252 employees.
• SBI has revenue of 143306 Crore rupees (20 billion US Dollars).
• The owner of the State Bank of India is the Government of India.
• SBI has many subisidaries:
• SBI Cards
• SBI Life Insurance
• Jio Payment Bank
• Yes Bank
• Andhra Pradesh Grameena Bank
• Kavenri Grameena Bank
• Vikas Bank.

20
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

WEAKNESSES
• The lack of adequate technology-driven infrastructure relative to private banks
• Employees are hesitant to fix issues efficiently due to better job stability, and the
turnaround period for clients is lengthy relative to private banks.
• The banks pay a large sum on their leased houses.
• SBI has the largest number of employees in the banking sector, which is why the bank
spends a considerable amount of its income on employees ‘salaries.
• Despite the modernization, the bank still conveys the perception of the traditional bank to
new-age clients.
• SBI does not draw corporate payroll accounts, and any government employee’s payroll
accounts are now transferred to private banks for ease of service, unlike before.

OPPORTUNITIES
• The merger of SBI with five other banks, namely the State Bank of Hyderabad, the State
Bank of Patiala, the State Bank of Bikaner and Jaipur, the State Bank of Travancore and
the State Bank of Mysore, is at the approval stage.
• Mergers would result in a rise in market share to protect its number one spot.
• SBI aims to expand and invest in foreign activities due to a strong inflow of capital from
the Asian economy.
• As some of the banking activities are yet to be modernized, there is a greater opportunity
for leveraging new technology and applications to enhance customer ties.
• Young and talented graduate and B school pools are on the rise to open new horizons for
the so-called “old government bank”.

THREATS
• Net profit of the year decreased from 9166.05 in the year 2010 to 7.370.35 in the year 2011.
• This indicates that the market share of its close rival ICICI is that.
• Other private banks, such as HDFC, AXIS bank, etc.

21
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

• FDIs permitted in the banking sector was increased to 49%, which is a major challenge to
SBI as citizens continue to turn to international banks for better banking services facilities
and technology.
• Other government banks, such as GNP, Andhra, Allahabad Bank, and Indian Bank, are
coming up.
• Customers prefer to switch to private banks and financial service providers for loans and
mortgages, as SBI involves strict verification procedures and takes a long time to process.

22
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

HISTORY

The roots of State Bank of India lie in the first decade of the 19th century when the Bank of
Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal
was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15
April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks
were incorporated as joint stock companies and were the result of royal charters. These three banks
received the exclusive right to issue paper currency till 1861 when, with the Paper Currency Act,
the right was taken over by the Government of India. The Presidency banks amalgamated on 27
January 1921, and the re-organized banking entity took as its name Imperial Bank of India. The
Imperial Bank of India remained a joint-stock company but without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which
is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1 July
1955, the Imperial Bank of India became the State Bank of India. In 2008, the Government of
India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of
interest because the RBI is the country's banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made eight
banks that had belonged to princely states into subsidiaries of SBI. This was at the time of the First
Five Year Plan, which prioritized the development of rural India. The government integrated these
banks into the State Bank of India system to expand its rural outreach. In 1963 SBI merged State
Bank of Jaipur (est. 1943) and State Bank of Bikaner (est.1944).

SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI
acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of
Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram
Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of
Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender, owned
by the Maharaja. The new bank's first manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired
the Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its affiliate,
the State Bank of Travancore, already had an extensive network in Kerala.

23
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

There was, even before it actually happened, a proposal to merge all the associate banks into SBI
to create a single very large bank and streamline operations.

The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven to six. On
19 June 2009, the SBI board approved the absorption of State Bank of Indore, in which SBI held
98.3%. (Individuals who held the shares prior to its takeover by the government held the balance
of 1.7%.)

The acquisition of State Bank of Indore added 470 branches to SBI's existing network of branches.
Also, following the acquisition, SBI's total assets approached ₹10 trillion. The total assets of SBI
and the State Bank of Indore were ₹9,981,190 million as of March 2009. The process of merging
of State Bank of Indore was completed by April 2010, and the SBIndore branches started
functioning as SBI branches on 26 August 2010.

On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed Chairperson
of the bank. Mrs. Bhattacharya received an extension of two years of service to merge into SBI
the five remaining associate banks.

24
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

The current position of the State Bank of India (SBI Bank)

The State Bank of India is a giant in its own right, and there are several reasons that contribute to
that. It is the oldest bank in the country currently if you go by the size of its balance sheet.

Additionally, its market capitalization, hundreds of bank branches and the number of profits is
helping it give stiff competition to other private sector banks in the country.

Presently, the bank is getting into a couple of new business with strategic tie-ups, which have quite
a large growth potential. Some of these tie-ups are General Insurance, Pension Funds, Private
Equity, Custodial Services, Mobile Banking, Structured Products, Advisory Services, and Point of
Sale Merchant Acquisition etc.

Additionally, it is concentrating on wholesale banking capacities and the top end of the market, in
order to offer India’s corporate sector with numerous services and products.

Gaining entry in the field of derivative instruments and structured products along with the
consolidation of the global treasury operations is also something they are focusing on now.

As of now, the State Bank of India is the biggest arranger responsible for external commercial
borrowings in the country and is the biggest provider of infrastructure debt. In addition, it is the
sole Indian bank to be a part of the Fortune 500 list.

Apart from banking, State Bank of India was also associated with non-profit ventures since 1973,
such as Community Services Banking. In such cases, administrative offices and branches all over
the country sponsor and take part in a huge number of social causes and welfare activities.

Additionally, they had also launched three digital banking facilities, in order to make financial
transaction an easier affair for their customers.

25
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Two of the digital banking facilities specialize in providing their services at the customers’
doorstep by utilizing the method of TAB banking (One for housing loan applicants and the other
for customers looking to open a savings account).

The third banking facility specializes in the KYC process (Know Your Customer). The other
services, which are offered by the State Bank of India, are the following-
• Personal Banking
• Rural/ Agriculture
• Small and Medium Enterprise (SME)
• Domestic Treasury
• NRI Services
• International Banking
• Corporate Banking
• Government Business

26
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

CHAPTER 3

THEORETICAL BACKGROUND

State Bank of India – Wealth

The country’s largest bank, the State Bank of India (SBI), has launched premium banking services
for the select few individuals. SBI has introduced SBI Wealth with a host of benefits for the
account holders. For example, for a personalized banking experience, a dedicated and experienced
relationship manager will be assigned for all the banking needs. There will be customer
relationship executives available for pickup and delivery of documents as a part of the doorstep
banking. As an SBI Wealth account holder, the bank will offer Signature Debit and Credit Cards
offering life style benefits and accelerated reward points to the account holders. Then there will be
extensive range of rewarding products and services including an all-new enhanced Savings
Account and SBI Wealth Visa Signature Debit Card (no charges), Lifestyle Privileges, Loan
Approvals on priority, Visa Signature Cards with additional Privileges, and lucrative investment
options in the SBI Wealth relationship including SBI fixed deposits.

The bank will provide investment products across various asset classes delivered through an Open
Investment Platform. One may even invest in Direct Equity and Fixed Income Services through
their partners. For protection needs, one can purchase Life insurance and General Insurance
products. And importantly, the bank will facilitate Online Will Services through Platform offered
by SBI Cap Trustee.

State Bank of India – The Home for Financial Excellence

• SBI, the country’s largest Bank aspires to be the Bank of Choice for a Transforming India

• Recognized nationwide as the country's premier bank and globally accredited as a Fortune
500 Company

• SBI take pride in a legacy of values that not only define what they are, but who they are

• Growing leaps and bounds, spanning over 24,000 branches and enjoying the loyalty of over
43 Crore customers, with an eternal objective: Banking Beyond Business

27
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

State bank of India understand

• You truly belong to a distinct league of your own as an Elite, with a distinguished social
standing and lifestyle aspirations

• As an accomplished individual, their customer deserves privileged services to meet your

specific Financial needs

State bank of India Endeavour

• To welcome you to experience a bouquet of personalized and diversified banking products

and services, topped up with best-in-class lifestyle benefits

• To offer 360-degree view of the financial and investment scenario, tailor made to suit your
Risk Profile, backed by our unmatched expertise of Research Team

• To enable you with state-of-the-art Digital Convenience on the move

• As a trusted friend, we present a world of opportunities to meet your financial dreams

Value proportion

Personalized Banking and Lifestyle Benefits

• A dedicated and experienced Relationship Manager (RM) assigned for all your Banking
needs to provide a Personalized Banking Experience.

• Door-Step Banking – Customer Relationship Executives available for pickup & delivery
of documents to save the hassles of travel/visits.

• Signature Debit and Credit Cards offering Life Style Benefits and Accelerated Reward
Points.

28
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Digital Convenience on the Move

• A first of its kind ‘e-Wealth Centre’ with extended Banking hours which enables Banking
& Investment transactions via Voice and Video Call with your Relationship Manager.

• A new-age avenue of managing your finances on-the-go through future-ready Internet

Portal & Mobile App which enable Transactions, Portfolio Review & Tracking at your
fingertips.

Investment and Other Products

• Best in Class Investment Products across various Asset Classes delivered through an
Unbiased and an Open Investment Platform by our experienced Research Team and
Investment Counsellors.

• A wide scope of cutting-edge products designed to maximize your Wealth Creation

opportunities along with Direct Equity and Fixed Income Services through our partners.

• Protection Solutions in the form of Life & General Insurance that not only safeguard your
future, but also help you plan for unforeseen circumstances.

• Facilitation of Online Will Services to our Clients through Platform offered by SBI Cap
Trustee Co. Ltd.

SBI WEALTH ELIGIBILITY

The SBI Wealth eligibility will depend on whether one is ‘Existing to Bank (ETB) Client’ or ‘New
to Bank (NTB) Client’.
Existing to Bank (ETB) Client
• Total Relationship Value (TRV) of Rs 30 lakh (Total Deposits, Investments in Mutual
Fund and Demat Holdings through SBI)
• Net Salary Credit of Rs 2 lakh and above at SBI Account
• SBI Home Loan of Rs 1 Cr & above

29
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

New to Bank (NTB) Client

• Initial Deposit/Investment of Rs 10 lakh (To be increased to a Total Relationship
Value of Rs 30 lakhs within a period of 12 months)
• Opening a Salary Account with SBI with Net Salary Credit of Rs 2 lakhs and above
• Newly availed SBI Home Loan of Rs 1 Cr & above
For the digital convenience of those who are mostly on-the-move, a first of its kind ‘e-Wealth
Centre’ with extended Banking hours which enables Banking & Investment transactions via Voice
and Video Call with your Relationship Manager will be available. Such individuals will also be
equipped with a new-age avenue of managing their finances on-the-go through future-ready
Internet Portal and Mobile App which enable Transactions, Portfolio Review and Tracking at
one’s fingertips

30
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

PRODUCTS

Wealth Savings Account

Wealth Savings Account is a Premium Account offered only for Wealth Clients with add-on
benefits viz. Free VISA Signature Debit Card, Fee Waivers, 25% Concession on Locker Rentals
and many more.

Investment Products (ISA)

• Mutual Funds

We have an Open Investment Platform that offers a bouquet of approved schemes across
Asset Classes from 19 AMCs to cater to different Client Risk Categories.

SBI Mutual Fund was incorporated in 1987 with its corporate head office located
in Mumbai, India. SBIFMPL is a joint venture between the State Bank of India, an Indian
public sector bank, and Amundi, a European asset management company. A shareholder
agreement in this regard has been entered on April 13, 2011, between SBI & AMUNDI
Asset Management. Accordingly, SBI currently holds 63% stake in SBIFMPL and the 37%
stake is held by AMUNDI Asset Management through a wholly owned subsidiary, Amundi
India Holding. SBI & AMUNDI Asset Management shall jointly develop the company as
an asset management company of international repute by adopting global best practices
and maintaining international standards.

Top 5 Performing SBI Mutual Funds

SBI Mutual Fund caters to investors with varying needs, risk appetite and investment horizon. The
performance of mutual funds is calculated based on different parameters like past performance,
the track record of the fund managers, the different financial ratios and the AUM growth of the
fund. Currently, investors can choose from 50 SBI Mutual Fund schemes across various categories.
Here is a list of the top-performing SBI Mutual Funds across different fund categories.

31
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

i. SBI Magnum Constant Maturity Fund

ii. SBI Magnum Gilt Fund
iii. SBI Dynamic Bond Fund
iv. SBI Magnum Income Fund
v. SBI Magnum Medium Duration Fund

Top 5 Performing SBI Equity Mutual Fund

SBI Equity Mutual funds seeks to maximize capital appreciation over the long run. They invest
predominantly in equity or equity-related instruments which have the potential for generating high
returns. The risk quotient of these SBI Mutual Fund ranges between moderately high to high due
to the inherent volatility associated with equity investments.

Here is a list of the top-performing SBI Mutual Funds in the equity category.

i. SBI Technology Opportunities Fund

ii. SBI Focused Equity Fund

iii. SBI Healthcare Opportunities Fund

iv. SBI Small Cap Fund

v. SBI Banking & Financial Services Fund

Top 5 Performing SBI Debt Mutual Fund

SBI Debt Mutual funds invest in debt and money market instruments. These include fixed income
securities such as government bonds, T-Bills, Commercial Papers, Commercial Deposits, etc. The
core objective of these SBI Mutual Fund schemes is to provide regular and steady income to the
investors. The risk quotient of these schemes ranges between low to moderate. Due to this, they
are perfect for conservative or risk-averse investors. Currently, SBI Mutual Funds offers 14 open-
ended schemes in this category.

i. SBI Magnum Constant Maturity Fund

ii. SBI Magnum Gilt Fund

32
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

iii. SBI Dynamic Bond Fund

iv. SBI Magnum Medium Duration Fund

v. SBI Magnum Income Fund

• Portfolio Management Services

SBI is tied up with reputed Portfolio Managers viz. ASK Investments, Motilal Oswal Securities
Ltd. and Aditya Birla Sun Life to offer different investment options. SBI Funds PMS is one of the
largest players in India that brings experience in wealth management to offer exquisite retail
services to High Net-worth Investors.

They have designed their PMS products by understanding the investor’s requirements and terms
of risk / return expectations. They are a Joint Venture between SBI and AMUNDI (France), one
of the world’s leading fund management companies. SBI Funds Portfolio Management Services
is associated with the Conglomerate of Indian Banking Sector – State Bank of India.

Being a Part of this gigantic group, the foundation of SBI Funds PMS group which is a private
company was laid by Mr. Ashwani Bhatia in the year 1993.

They have their head-quarters in Mumbai, Maharashtra. Today SBI Funds PMS is a known name
for distributing investment products and providers of financial services in India.

SBI Funds PMS has an extremely good rate of return. The broking house is flourishing and has
beaten the record of 10 years Mutual Fund Returns.

This healthy rate of return is another major reason why investors prefer to avail their services in
addition to their association with SBI group.

33
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

SBI Funds PMS Fund Managers Details

Aparna Shanker (Portfolio Manager)

Ms. Aparna started working with SBIMF from the year 2007, when she was the research analyst
and now serves as the Portfolio Manager. Her previous work commitments included Sahara Asset
Management, Birla Global Finance and UTI.

She holds an experience of collectively 15 years. As far as her educational qualifications are of
concern, she is a Science graduate, alongside general law from Mumbai University. Also, she holds
Masters in Finance and a post-graduate diploma in Treasury & Forex Management from ICFAI
University.

SBI Funds PMS Benefits

1. The variety of benefits offered by SBI Funds PMS are as follows:

2. There is a Top-up facility given by them to all the investors.

3. The client can access to their web services through the online medium which will facilitate
the latest reports and portfolio information.

4. Timely basis provisions are made for all the transactions that take place in the clients
account by way of Email Update and SMS Update.

5. Flexible investment plans and flexible commission models are also made available by this
group.

6. SBI Funds PMS house has a massive experience in Portfolio Management Services for
optimum results.

34
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

SBI Funds PMS Customer Care

1. The Customer Care support provided by the team of SBI Funds PMS house is very
satisfactory.

2. The facility of making Direct Call for resolve issues and queries of any sort can be availed
by the client.

3. The support of Email and WhatsApp is also being given to the clients.

4. All their customers can also connect and seek support from their Relationship Manager at
any point of time.

5. The Fund Manager can also be called directly for at least 3 to 5 times in a month.

6. The issue resolving TAT period of SBI Funds PMS team is 13 working days.

SBI Funds Portfolio Management Services is created in particular to meet the investment
needs of top-quality clients who require focused portfolios. They believe in understanding
the investor’s requirements and risk/return expectations. Based on these factors only this
PMS team suggests solutions for the portfolio of the clients. The team focuses on customer
delight, transparency and sustained returns, thereby launching a wide range of innovative
products.

So, for your integrated end-to-end customized asset management solution in terms of
advisory service, discretionary and non-discretionary portfolio management services you
can be rest assured with the professionally managed, quality focused and customer centric
group of SBI Funds PMS house.

You can relax and expect good returns from them for your hard-earned investments.

35
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

• DIRECT EQUITY

Investments in Direct Equity is offered through our tie-up with SBICAP Securities Ltd.
There are many legitimate ways in which you can invest money and accumulate wealth.
Among them, investing in equities (also known as stocks, shares, or securities) is one of
the most popular because it is a hedge against inflation and better than keeping cash idle.

Wealth creation in stocks happens in two ways: selling a share at a price higher than your
buying price, resulting in profit; and dividend income. In equities, long-term investing has
always yielded excellent returns. But short-term investing also has its benefits; enhanced
liquidity at your finger-tips, for instance.

All the securities that you buy and sell are held electronically in an account known as the
dematerialized account or demat account. To start your investment journey, it is necessary
for you to open a demat account. You can then buy and sell stocks from the comfort of
your home.

A demat account with SBIcap securities offers the following advantages.

a State-of-the-art web-based platform, and SBISMART Money, our feature-rich and
extremely user-friendly mobile app for a seamless trading experience

b Sophisticated charting tools and calculators to guide you in both intraday and delivery

c Real-time research and stock tips

a Dedicated relationship managers to guide you and resolve all your queries.

• SBI Focused Equity Fund aims to provide investors with opportunities of long-term capital
appreciation by investing in a concentrated portfolio of equity and equity related
instruments.
• The fund invests minimum of 65% in equity and equity related instruments spanning across
market capitalization.
• SBI Focused Equity Fund has the flexibility to invest up to 35% in debt and/or money
market instruments.
• The fund follows a bottom-up approach to stock-picking and invests in companies across
market capitalization and sectors

36
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

• BONDS

An opportunity to invest in various products like RBI Bonds, Capital Gain Bonds,
Sovereign Gold Bonds and other Primary/Secondary Market Bonds.

1. Capital gain bonds:

Capital gain bonds are one of the prudent ways to save long-term capital gain tax arising out of
sale or transfer of long-term capital assets such as land, building or both.

2. Sovereign Gold Bond:

The Government of India, in consultation with the RBI, issues Sovereign Gold Bonds (SGB),
thereby offering investors another way to own gold. SGB offers you a superior alternative to
holding physical gold.

3. RBI Bonds:
The Bonds are open to investment by individuals (including Joint Holdings) and Hindu Undivided
Families/charitable institutions/universities. NRIs are not eligible for making investments in
these Bonds.

Investment Services Account (ISA)

Investment Services Account (ISA) is offered to Wealth Clients to enable a seamless Platform for
Investments in various Mutual Funds and other Financial Instruments. The ISA enables Wealth
Clients to have access to various reports like Asset Allocation Report, Portfolio Performance
Report and Realized & Unrealized Gains Reports.

37
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Other Products

• Life Insurance

Life is full of uncertainties. Some uncertainties are common and occur frequently without
much financial impact on your life, but some uncertainties are very rare and can
significantly harm your financial capabilities or status. Insurance is used to counter the
impact of such uncertainties on your family’s financial status.
At SBI Wealth, we offer various approved Insurance Products of SBI Life Insurance for
our Clients’ financial protection.

• General Insurance

In case of the unfortunate events which can harm your financial capacity, for example:
hospitalization, major treatment/surgery, accident, theft, etc., Insurance provides you an
umbrella, under which you can hope to minimize the effect of such events, at least on
your financial status and capabilities.
To safeguard the financial stability of our Clients, we offer approved General Insurance
Products through our tie-up with SBI General Insurance.

• Estate Planning

With consequent accumulation of assets, the need for Succession Planning is of paramount
importance now. We facilitate online Will Services to our Clients through SBICAP Trustee
Co. Ltd. Platform.

• Credit Card

SBI Card Elite is offered to Wealth Clients with an Annual Fee waiver for the first year,
which brings you a Priority Pass membership, exclusive benefits across various Luxury
Hotels worldwide, Concierge Services and much more.
Card issuance is subject to eligibility criteria and issued by SBI Cards & Payment
Services Pvt. Ltd.

38
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

WEALTH SERVICE DELIVERY CHANNELS

SBI Wealth Hubs

Our Wealth Hubs are designed to provide a Premium and Personalized Experience with a gamut
of tailor-made Products and Services.

At SBI Wealth Hubs, experience exclusivity:

• Dedicated state-of-the-art Infrastructure

• Wealth Lounges and Meeting rooms

• Dedicated and Experienced Wealth officials to create a Delightful Experience:

o Relationship Manager
o Relationship Manager-Wealth Services
o Investment Officer
• Easy execution of Transaction and Services

• Banking at your Door-Step

e-Wealth Centre

Short on time with a lengthy bank queue ahead or searching for troubleshooting and support for
an online transaction?

Bring the bank within your comfort zone and access important information at a moment's notice?

It's time you seize the advantage of gaining a winning edge in today's fast-paced world and
experience a Digital Channel brought to you by SBI Wealth.

An all-in-one window of opportunity to manage your finances on-the-go!

• A first-of-its-kind ‘e-Wealth Centre’ equipped to facilitate all your financial needs

including Balance Enquiry, Fund Transfers, Service Requests, Investment Opportunities,

39
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

transactions in Mutual Fund Schemes, Equities & Debt Instruments – over a Quick Voice
and Video Call with your Relationship Manager.

• Extended Banking hours

• Experienced Wealth staff to create a Delightful Experience:

o Relationship Manager
o Service Manager
o Investment Counsellor

Web Portal & Mobile App

A new-age avenue of managing your finances on-the-go through future-ready Internet & Mobile
App that enable Trade transactions, Trending Updates, Market Information, Review of
Investments, Portfolio Tracking, etc. – all at your fingertip. Manage your Complete Portfolio from
our Web Portal/Mobile App with access to do the following:

• View and select Products/Funds from our SBI Wealth approved list.

• Browse/Evaluate available funds for Purchase/Sale.

• Get access to the details of Portfolio.

• View your Portfolio, Performance, Current Asset Allocation and compare it with the Model
Portfolio.

• Get various reports viz. Holdings, Transactions, Indicative Gain/Loss, Corporate Actions,
etc.

40
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

INVESTMENT RESEARCH

A dedicated group of Investment Experts having in-depth knowledge of Diversified Products, who
conduct a detailed Research based study on myriad Investment Options. SBI Wealth Research
Team also publishes regular reports on market scenario. A monthly strategic 360° report called
“SBI Wealth Investment Outlook” which not only monitors current scenarios, but also shares our
House View on Investment Opportunities.

Product Selection Process

LIFESTYLE PRIVILEGES

SBI Rewardz Loyalty Program is a way of adding value to the banking experience of our Clients.
An Enterprise-Wide Loyalty Program, SBI Rewardz awards Reward Points to SBI Clients for their
everyday transactions across multiple Banking Channels.

41
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Accumulate SBI Rewardz points from a wide range of transactions which can be redeemed across
a large array of Products and Services such as Online & in-store shopping, Travel Booking,
Mobile/DTH recharge, Gifts, Personal Care, Entertainment, etc. To know more click here (State
Bank Rewardz Home Page)

• Visa Signature Debit Card that offers discounts on Entertainment, Dining, Wellness,
Travel, Hotels & Shopping apart from Airport Lounge Access and access to Enterprise-
Wide Loyalty Program - SBI Rewardz. This Card is complimentary for SBI Wealth Clients

• SBI CARD (Elite) brings you a Priority Pass membership, exclusive benefits across
various Luxury Hotels Worldwide, Concierge Services and much more!
Card issuance is subject to eligibility criteria and issued by SBI Cards & Payment Services
Pvt. Ltd

42
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

BALANCE MAR 20 MAR 19 MAR 18 MAR 17 MAR 16

SHEET OF
STATE BANK
OF INDIA (in Rs.
Cr.)
12 months 12months 12 months 12 months 12 months
EQUITIES AND
LIABILITIES
SHAREHOLDER'
S FUNDS
Equity Share 892.46 892.46 892.46 797.35 776.28
Capital
TOTAL SHARE 892.46 892.46 892.46 797.35 776.28
CAPITAL
Revaluation 23,762.67 24,653.94 24,847.99 31,585.65 0.00
Reserve
Reserves and 207,352.30 195,367.42 193,388.12 155,903.06 143,498.16
Surplus
Total Reserves 231,114.97 220,021.36 218,236.10 187,488.71 143,498.16
and Surplus
TOTAL 232,007.43 220,913.82 219,128.56 188,286.06 144,274.44
SHAREHOLDER
S FUNDS
Deposits 3,241,620.7 2,911,386.0 2,706,343.2 2,044,751.3 1,730,722.4
3 1 9 9 4
Borrowings 314,655.65 403,017.12 362,142.07 317,693.66 323,344.59

43
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Other Liabilities 163,110.10 145,597.30 167,138.08 155,235.19 159,276.08

and Provisions
TOTAL 3,951,393.9 3,680,914.2 3,454,752.0 2,705,966.3 2,357,617.5
CAPITAL AND 2 5 0 0 4
LIABILITIES
ASSETS
Cash and 166,735.78 176,932.42 150,397.18 127,997.62 129,629.33
Balances with
Reserve Bank of
India
Balances with 84,361.23 45,557.69 41,501.46 43,974.03 37,838.33
Banks Money at
Call and Short
Notice
Investments 1,046,954.5 967,021.95 1,060,986.7 765,989.63 575,651.78
2 2
Advances 2,325,289.5 2,185,876.9 1,934,880.1 1,571,078.3 1,463,700.4
6 2 9 8 2
Fixed Assets 38,439.28 39,197.57 39,992.25 42,918.92 10,389.28
Other Assets 289,613.55 266,327.70 226,994.20 154,007.72 140,408.41
TOTAL ASSETS 3,951,393.9 3,680,914.2 3,454,752.0 2,705,966.3 2,357,617.5
2 5 0 0 4
OTHER
ADDITIONAL
INFORMATION
Number of 22,141.00 22,010.00 22,414.00 17,170.00 16,784.00
Branches
Number of 249,448.00 257,252.00 264,041.00 209,567.00 207,739.00
Employees

44
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Capital 13.00 13.00 13.00 13.00 13.00

Adequacy Ratios
(%)
KEY
PERFORMANCE
INDICATORS
Tier 1 (%) 11.00 11.00 10.00 10.00 10.00
Tier 2 (%) 2.00 2.00 2.00 3.00 3.00
ASSETS
QUALITY
Gross NPA 149,091.85 172,753.60 223,427.46 112,342.99 98,172.80
Gross NPA (%) 6.00 8.00 11.00 7.00 7.00
Net NPA 51,871.30 658,947.40 110,854.70 58,277.38 55,807.02
Net NPA (%) 2.23 3.00 6.00 4.00 4.00
Net NPA To 2.00 3.00 6.00 4.00 4.00
Advances (%)
CONTINGENT
LIABILITIES,
COMMITMENTS
Bills for 55,758.16 70,022.54 74,027.90 65,640.42 199,140.17
Collection
Contingent 1,214,994.6 1,116,081.4 1,162,020.6 1,046,440.9 971,956.01
Liabilities 1 6 9 3

45
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Table no.1 The following table shows the no. of total shareholders fund in crore
from the year 2018 to 2020.

[Link] Year Total shareholders fund (Rs. In

crore)
1 Mar 2018 219128.56
2 Mar 2019 220913.82
3 Mar 2020 232007.43

Total shareholders fund (Rs. in crore)

Total shareholders fund (Rs. in crore)

235000

230000

225000

220000

215000

210000
Jan-18 Jan-19 Jan-20

INTERPREATTION

In above table shows the Total Shareholders fund of the company. During the year 2018 fund is 219128.56
crore, during the year 2019 asset is increase up to 220913.82 crore and the year 2020 share capital is

46
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

232007.43 increases the share capital year by year. In growth is high of previous year. The total asset is
increase because the customer satisfies with the service of the company.

Table no. 2: The following table shows the No. of Total non-current liabilities
in Crore and No. of year from 2018 to 2020

[Link] Year Total capital and liabilities

(Rs. In crore)
1 Mar 2018 3454752.00
2 Mar 2019 3680914.25
3 Mar 2020 3951393.92

Total capital and liabilities

(Rs. In crore)
4000000
Total capital and liabilities

3900000
3800000
(Rs. In crore)

3700000
3600000
3500000
3400000
3300000
3200000
Jan-18 Jan-19 Jan-20

total capital and liabilities

INTERPRETATION

In above table shows the Total capital and liabilities of the company. During the year 2018 liabilities is
3454752.00 crore, during the year 2019 asset is increase up to 3680.914.25 crore and 3951393.92 crore

47
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

increase the Total capital and liabilities year by year. In growth is high of previous year. The total asset is
increase because the customer satisfies with the service of the company.

Table no. 3: The following table shows the No. of Total assets in Crore and No.
of year from 2018 to 2020

[Link] Year Total assets

(Rs. In crore)
1 Mar 2018 3454752.00
2 Mar 2019 3680914.25
3 Mar 2020 3951393.92

Total assets
(Rs. In crore)
4000000

3900000

3800000
(Rs. In crore)
Total assets

3700000

3600000

3500000

3400000

3300000

3200000
Jan-18 Jan-19 Jan-20

48
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

INTERPRETATION

In above table shows the Total Assets of the company. During the year 2018 assets is 3454752.00
crore, during the year 2019 asset is increase up to 3680914.25 crore and 2020 is 3951393.92 crore
increase the Total asset year by year. In growth is high of previous year. The total asset is increase
because the customer satisfies with the service of the company.

Table no.4: The following table shows the No. of Total Other additional
information (Contingent liabilities) in Crore and No. of year from 2018 to
2020

[Link] Year Other additional information

(Contingent liabilities)
(₹ in Crore)
1 Mar 2018 1162020.69
2 Mar 2019 1116081.46
3 Mar 2020 1214994.61

49
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Total Other additional information (Contingent liabilities) in

Total Other additional information (Contingent Crore
1240000

1220000

1200000
liabilities) in Crore

1180000

1160000

1140000

1120000

1100000

1080000

1060000
Jan-18 Jan-19 Jan-20
Axis Title

Other additional information (Contingent liabilities)

INTERPRETATION

In above table shows the other additional information (Contingent liabilities) of the company. During
the year 2018 assets is 1162020.69 crore, during the year 2019 asset is decrease up to 1116081.46 and
2020 is 1214994.61crore increase the Contingent liabilities year by year. In growth is high of previous
year. The total Contingent liabilities is increase because the customer satisfies with the service of the
company.

50
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

Table no. 5: The following table shows the Total Income in Crore and No. of
year from 2018 to 2020

[Link] Year Total Income (₹ in Crore)

1 Mar 2018 265100.00

2 Mar 2019 279643.54

3 Mar 2020 302545.07

Total Income (₹ in Crore)

310000

300000

290000
Total Income (₹ in Crore)

280000

270000

260000

250000

240000
Jan-18 Jan-19 Jan-20

total income (in crore)

51
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

INTERPRETATION

In above table shows the Total income of the company. During the year 2018 income is
265100.00crore, during the year 2019 asset is increase up to 279643.54 crore and 2020 is
302545.07Crore increase the Total asset year by year. In growth is high of previous year. The total
asset is increase because the customer satisfies with the service of the company.

52
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

CHAPTER 5

LIMITATION OF THE STUDY

Despite of all possible efforts to make the market research more comprehensive and scientific,
study has certain following Limitations.

• Any suggestion given by analyzing data collected may not be accurate for other location
as people requirement and Expectation differ from one place to other.

• There existed some respondents who refused to respond and these respondents who Did
not participate in the survey may not be distinct & might have affected the Result of the
study.

• The sample size was chosen randomly which might not be appropriate which led to few
errors in the study.

• Some of the resources did not furnish all the information required for the study.

• The present study is limited to only State bank of India

• The study data is mostly based on secondary data source.

53
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

FINDINGS
• 90% of the Existing customers are Happy with the benefits of SBI wealth as very good.
• From the online research study, it has been observed that 90% of the respondents are
Aware of State Bank of India and their schemes
• About 91% of the respondents are look for security while investing in SBI wealth and
investment schemes.
• 90% of the Existing customers are Happy with the benefits of State bank of India wealth
is very good.

• 80% of the respondents are Rate the Benefits of State bank of India wealth as very good.

• Security while investing in ant schemes of State bank of India are accurate and trustworthy
and World Class advisory services available through expert investment counsellors

• The technology component of our Wealth Management Initiative is a major digitization

effort of your Bank.

54
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

SUGGESTIONS

1. Bank employees should bring more professionalism in their attitude while

dealing with customers to retain and attract more customer
2. All the nationalized banks should try to improve their service level to face
the stiff competition given by private banks
3. SBI need to provide more knowledge regarding security of internet banking
4. SBI should focus on- Launch Innovative product
Customized advance products.
Better customer services
5. State bank of India should improve fastest customers problem solving techniques
State bank of India need to focus on the techniques and schemes to maintain the
customer retention

55
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

CONCLUSION

The State Bank of India has been progressing well in the right direction the bank is providing
investment products across various asset classes delivered through an Open Investment Platform.
One may even invest in Direct Equity and Fixed Income Services through their partners. For
protection needs, one can purchase Life insurance and General Insurance products. it operates a
number of customer-oriented services, engages in export promotion and successfully carries out
overseas operations. SBI is in 1st position having large number of customers & providing good
services to them. The bank has a wide customer base, so the bank should concentrate on this to
retain these customers. In present scenario SBI is the largest advance product issuer in India. SBI
believe in providing good customer services to their customers which Isa key factor for success
in future.

56
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL
A study of investment and wealth management business of State Bank of India

CHAPTER 6
BIBLOGRAPHY
• [Link]
• [Link]
• [Link]
• [Link]

57
SANT RAWOOL MAHARAJ MAHAVIDYALAYA, KUDAL