DEPARTMENT OF BUSINESS ADMINISTRATION UNIVERSITY OF LUCKNOW Session 2013-2014 Summer Internship Report of MBA on

Study on Scope and Opportunities to increase our SME Business in Leather Industries at Kanpur and Unnao Centre.

Submitted by: Manish Kumar Singh MBA Sem.-III Roll No. 12001128032

Submitted to: Mr. Narendra Deo Kumar Mentor & Branch Manager SBI (SME) Jajmau Branch

INDEX CONTENTS Page No.

Acknowledgement....................................................................................................02 Executive Summary.................................................................................................03 Chapter 1..................................................................................................................04 Students Profile.............................................................................................05 Overview........................................................................................................07 History............................................................................................................09 Competitors....................................................................................................12 Strengths/Opportunity and Weakness/Threats................................................13 Different Products..........................................................................................15 Awards and Recognitions by SBI...................................................................16 Chapter 2...................................................................................................................17 Introduction to Advance Product...................................................................19 Types of SBI Advance Products.....................................................................18 Leather Industries in Kanpur and Unnao........................................................21 Environmental Impact.....................................................................................21 Treatment of Polluted Water...........................................................................22 Government Regulation and Support..............................................................23 Statement of Problem......................................................................................24 Research Objectives........................................................................................24 Significance and Scope....................................................................................25 Chapter 3...................................................................................................................26 Research Methodology Chapter 4...................................................................................................................29 Analysis of Data Chapter 5...................................................................................................................37 Project Findings..............................................................................................38 Suggestion and Recommendation...................................................................39 Conclusion......................................................................................................40 Annexure (Questionnaire/Survey Format).............................................................41 Bibliography.............................................................................................................47 2

Acknowledgement

If words are considered to be signs of gratitude then let these words convey the very same. My sincere gratitude to State Bank of India for providing me with an opportunity to work with State Bank of India and giving necessary directions on doing this project to the best of my abilities.

I am highly indebted to Shri Narendra Deo Kumar, Branch Manager, SBI, Jajmau Branch and company project guide, who has provided me with the necessary information and also for the support extended out to me in the completion of this report and his valuable suggestion and comments on bringing out this report in the best way possible.

I am grateful to all faculty members of Department of Business Administration, University of Lucknow, Lucknow and my friends who have helped me in the successful completion of this project.

I extend my heartfelt thanks to Mr. Manoj Srivastav, Human Resource Manager Lucknow Head Office SBI. And also thankful to my friends for giving their valuable support.

Thanking You

Executive Summary
In the growing global competition, the productivity of any business concern depends upon the behavioral aspect of consumers. This topic deals with the customers perception towards other Advance Product from SBI credit cards at Kanpur and Unnao. This project report contains 5 different chapters. The report begins with the introduction to company, its area of operation, its organization structure, its achievements, etc. The second chapter is the introduction to the Advance Product which gives a brief idea regarding advance product of SBI LOCAL HEAD OFFICE, Lucknow where the project is undertaken. It also contains the objectives and limitations of the project. The third chapter, methodology adopted in preparing this report is mentioned. It covers the sample procedure, types of data used and the data collection method. The fourth chapter comprehensive coverage of forecasting concepts and techniques which shows the analysis of data through tabulation, computation and graphical representation of data collected from survey. The fifth chapter deals with the findings, suggestion & conclusion part which is very much important after analysis is made. As we know that only analysis and conclusion is not the end of a research, so in the sixth chapter the recommendation part is covered which are made after a depth study of the analysis part of thesis. In each of the five chapters as described above, every chapter has been scheduled in a manner so as to enable the reader to appreciate the contents easily. The report is supported by figures and data wherever necessary with a view to assist the reader in developing a clear cut understanding of the topic. I hope this report will be extremely useful for those it is meant. Constructive and healthy suggestions for improvements of the report will be great fully appreciated.

Manish Kumar Singh

CHAPTER-1
Personal Detail Company Profile
Overview History Competitors SWOT Analysis Different Products Awards & Recognitions by SBI

Personal Details
Name Gender Date of Birth Language Proficiency Parents Name : : : : : : Manish Kumar Singh Male 2nd of June1984 English & Hindi Mr. Abhimanyu Singh Mrs. Savitri Devi

Permanent Address

: 4-Balrampur Management Hostel In front Baradari, Qaiserbagh Lucknow -226001 (U.P.) : 9696905733 : mks_ams@yahoo.com

Phone Email ID

Educational Qualification Course MBA(pursuing) Institution Department Of Business Administration Lucknow Christian College, Lucknow Govt. Inter College, Anpara, Sonebhadra Govt. Inter College, Anpara, Sonebhadra 2011 2001 1999 Year of passing Board/University University Of Lucknow Indira Gandhi National Open University UP Board UP Board 55.00 45.40 54.33 Marks %

B.Sc HSC

SSC

Personal Objective

To work in highly challenging environment which best utilizes my capabilities and ascend the ladder of success through diligence.

Extra Co-Curricular Activities and Achievements

A member and actively participation in ingenuous youth association Participated in game and cultural activities Taken part in debates, skits and quizzes Won First Prize in Presentation and Making Collage in LUMBA Participated in Awareness to clean your city in Kanpur

SOFT SKILLS Enjoy working in teams Flexible to travel Quick learner Good presentation skills Knowledge of MS Office Listening skills

OVERVIEW
The deposits of Bank have risen to 12,02,740 crores with the annual growth at 15.24% over that of last years level of `10,43,647 crores. On the advances front Bank has crossed the 10,00,000 crores level and now the advances stand 10,78,557 crores. Like the deposits, the growth of 20.70% over last year is better than the growth recorded by all Scheduled Commercial Banks. The growth has come mainly from a surge in advances to large corporates at 50,549 crores, which represents an unprecedented growth of 40.28% during this FY compared to 15.23% (16,298 crores) achieved last FY. Mid corporate segment too has made a significant contribution of 31,472 crores giving an 18.15% growth, as against 12,173 crores (8.78% growth) last year. The retail segment growth has been to the tune of 27,267 crores giving a growth of 14.95% against last years 10.85%. Major drivers in this segment have been the Home Loans and Auto loans which have registered a 16.28% (16,728 crores) and 35.47% growth (6,494 crores) respectively. Under flow of credit to the farming community, the Bank has disbursed direct Agriculture loans of 22,303 crores during the year, representing a growth of 25.85% covering 11.89 lac new farmers. Out of the total direct agriculture advance of 1,08,584 crores standing in the books as at 31/03/2013, 30.77% i.e. 33,409 crores is collateralized by gold. During the year, the Bank expanded its reach by adding 719 branches to its network comprising 123 in Metros, 122 in Urban, 170 in Semi-Urban and 304 in rural areas. As at 31/03/13, out of total 14,816 branches, 66% (9851 branches) are in rural and Semi-urban areas. State Bank group has one of the largest ATM networks in the world with 32,752 ATMs as on 31/03/13. Bank has introduced Cash Deposit Machines to facilitate customers to deposit cash in their accounts by swiping their SBI ATM cum Debit card. As on 31/03/13, the number of CDMs installed was 665.

Management The bank has 14 directors on the Board and is responsible for the management of the Banks business. The board in addition to monitoring corporate performance also carries out functions such as approving the business plan, reviewing and approving the annual budgets and borrowing limits and fixing exposure limits. Mr. Pratip Chaudhari is the Chairman of the bank.

Hemant G. Contractor (Managing Director) Arundhati Bhattacharya (Managing Director & Chief Financial Officer) Krishna Kumar (Managing Director) S. Visvanathan (Managing Director) S. Venkatachalam (Director) D. Sundaram (Director) Thomas Mathew (Director) S.K. Mukherjee (Officer Employee Director) Rajiv Kumar (Director) Jyoti Bhushan Mohapatra (Workmen Employee Director) Deepak Amin (Director) Harichandra Bahadur Singh (Director)

Shareholding & Liquidity

Sales
State Govt.+ Central Govt.

GDR issue & Others Oversease investors Non Institutions(Corporate bodies) Institutions(Mutual Fund, UTI, Insurance,Foreign institution State Govt.+ Central Govt. 0

2.71 8.41 2.4 26.49 62.31

GDR issue & Others Institutions(Mutual Fund, UTI, Insurance,Foreign institution and banks) Non Institutions(Corporate bodies)

Oversease investors

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40

60

80

Key Areas of Operations

The business operations of SBI can be broadly classified into the key income generating areas such as National Banking, International Banking, Corporate Banking, & Treasury operations.

HISTORY
The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

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The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

Group Photograph of Central Board (1921)

Business
The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs. one Lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favour of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden.

Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.

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First Five Year Plan

In 1951, when the First Five Year Plan was launched, the development of rural India was given the highest priority. The commercial banks of the country including the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank by taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates). The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking sub serving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development.

International presence
As of 28 June 2013, the bank had 180 overseas offices spread over 34 countries. It has branches of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town. It also has an ADB in Boston, USA. The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches, four in the Toronto area and three in the Vancouver area. SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank: State Bank of India (Mauritius). In 1982, the bank established a subsidiary, State Bank of India (California), which now has ten branches nine branches in the state of California and one in Washington, D.C. The 10th branch was opened in Fremont, California on 28 March 2011. The other eight branches in

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California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield. In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian Merchant Bank and received permission in 2002 to commence retail banking. It now has five branches in Nigeria. In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches throughout the country. In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest. In Indonesia, it owns 76% of PT Bank Indo Monex. The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin. In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8 million in October 2005.

COMPETITORS
Competitors and other players in the field
Top Performing Public Sector Banks Andhra Bank Allahabad Bank Punjab National Bank Dena Bank Vijaya Bank Top Performing Private Sector Banks HDFC Bank ICICI Bank AXIS Bank Kotak Mahindra Bank Centurion Bank of Punjab

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Top Performing Foreign Banks Citibank Standard Chartered HSBC Bank ABN AMRO Bank American Express

SWOT Analysis
Strength
1. The biggest bank in the country 2. Has a separate act for itself. Thus, a special privilege. 3. Biggest branch network in the country 4. First public sector to move to CBS

Weakness
The risks that could ensue to SBI in time to come are as under: SBI is currently operating at a lowest CAR. Insufficient capital may restrict the growth prospects of the bank going forward. Stiff competition could impact growth of SBI and hence slowdown in earnings growth. Delay in technology upgradation could result in loss of market shares. Slowdown in domestic economy would pose a concern over credit off-take thereby impacting earnings growth.

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Opportunity
1. Pool in talent to replace the going top management to serve the next generation 2. Make better use of its CRM 3. Expansion into rural areas

Threats
1. Consolidation among private banks 2. New bank licenses by RBI so there is increased competition in industry 3. Foreign banks that have sophisticated products 4. Lackluster performance of Indian Economy and Indian Rupee against foreign currency.

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DIFFERENT PRODUCTS OF SBI

DEPOSIT Savings Account Life Plus Senior Citizens Savings Account Fixed Deposits Security Deposits Recurring Deposits Loans against Securities Two Wheeler Preapproved Loans Retail Asset LOANS Home Loans Loan Against Property CARDS DIFFERENT CREDIT CARDS Consumer SBI International cards Cards Credit Card SBI Gold cards

Personal Loans Car Loan

Travel Card Debit Cards

SBI Gold Master cards

Your City Your Cards

Commerc ial Cards

Tax-Saver Fixed Deposit Salary Account

Corporate Cards Prepaid Card

Partnership Cards

Advantage Woman Savings Account Rural Savings Account People's Savings Account Freedom Savings Account

Purchase Card

SBI Employee Cards

Farmer Finance Business Installment Loans Flexi Cash

Distributi on Cards Business Card SBI Advantage Cards

Merchant Services

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Honors and Awards

Banks achievements in various fields have received national and international recognition as enumerated below: FE Best Banks Award-Award for Initiatives National Award- 2011-12 Best Bank for Excellence in the field of Khadi & Village Industries (PMEGP) Agriculture Leadership Award 2012 from Agriculture Today under Development Leadership category. Best IT driven Innovation Award in Banking in the Country from NASSCOM was awarded to APGVB, RRB sponsored by SBI. Ministry of Rural Development, GOI, awarded Certificate of Excellence for Banks proactive role in establishing Rural Self Employment Training Institutes across the country during the year 2011-12. Asias Best CSR Practice Award instituted by CMO Asia has been awarded to the Bank in Singapore. Asian CSR Leadership Award 2012 has been conferred to the Bank in Dubai. IPE Best CSR Award 2012. Most Caring Companies of India Award 2012. Star of the Industry Award for excellence in Banking (PSU) 2012. Golden Peacock Award 2012 in Corporate Governance by the Institute of Directors on 11th October 2012. Golden Peacock Award 2012 in National Training Award-2012

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CHAPTER-2
Introduction to Advance Product SBI Advance Product Statement the Problem Research objectives Significance and scope

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Introduction to Advance Product

Now a day not all the people have the capacity to fulfill their requirement by their own earning, thats why they need help from others. For this so many government & private sector bank provide them money to fulfill their requirement, thats call the Advance Product (loan product) of the bank. All the banks have so many different types of advance product as per the requirement of the people or customers. In Kanpur also there are so many banks those provide loan to the people for different causes. Types of Advance Product Home Loan Educational Loan Car Loan Personal Loan Property Loan Loan Against Shares\Debentures Cash Credit/Term Loan (for SMEs) Etc.

Now a day a large no. of people are taking loan from different banks. It helps people to fulfill their need and it really easy to repayment the loan amount with a longer repayment period.

SME Loans
SME finance is the funding of small and medium sized enterprises, and represents a major function of the general business finance market in which capital for different types of firms are supplied, acquired, and costed or priced. Capital is supplied through the business finance market in the form of bank loans and overdrafts; leasing and hire-purchase arrangements; equity/corporate bond issues; venture capital or private equity and asset-based finance such as factoring and invoice discounting.

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Significance
Without SME loans, most Business person could not afford to start or expansion of their business. The SME sector and related industries are a large share of the Indian gross domestic product (GDP). It covers a whole contribution of about 17 percent to 18 percent of the nations GDP.

Function
The most common purpose of a SME loan is to provide the funds a buyer needs to purchase the Land, construction of building, Machinery, Office equipment, purchase of raw material and bear labor cost.

Types
The two most widely used types of SME loans are fixed-rate and adjustable-rate loans. A fixed-rate loan keeps the same interest rate for the life of the loan, which means that the principal and interest portions of the monthly payment stay the same. Adjustable-rate mortgages begin with a lower interest rate for the first few years and then adjust to market rates after the initial period is over. Caps are placed on how much the rate can adjust at any one time, as well as on how much the rate can increase over the life of the loan. This means the principal and interest portions of the monthly payment change repeatedly through the life of the loan.

Effects
Because SME loans are a large share of the financial situation of the majority of Indian, taking the time to determine the right type of loan and to investigate terms is essential for any Organization.

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SBI SME LOAN

SME Term loan SME open term loan SME smart score SME collateral free loan

Purpose
Working capital needs (Fund Based+ Non Fund Based). Term loan for construction of Building, office, acquisition of machines/equipments including expansion and modernization of the unit. Expansion and modernization. Substitution of high cost debts/ high cost term debts of other banks/FIs. Design and introduction of new lay-outs in the factory to enhance productivity. Up gradation of technology & energy conservation schemes/ machinery. Acquisition of software, hardware, consumable tools, jigs, fixtures, vehicles, equipment , furniture upholstery etc. Acquisitions of ISO & other similar certifications. Visits abroad for acquiring technology, finalizing business deals, participating in exhibitions/ fairs for market promotion etc. R &D activities of the units in overall business development objective.

Eligibility
New and existing Micro and Small Enterprises engaged in Manufacturing and Service sector. For Manufacturing sector, original investment in plant & machinery should be upto Rs 5 crore and for Service sector, original investment in equipment upto Rs 2 crore.

It also include those who have small and medium enterprise units engaged in manufacturing, trade or cervices of leather goods. Minimum age 18 years as on the date of sanction Maximum age limit for a SME Loan borrower is fixed at 70 years, i.e. the age by which the loan should be fully repaid.

Availability of sufficient, regular and continuous source of income for servicing the loan repayment.

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Leather Industries in Kanpur and Unnao

Once known as the Manchester of India, Kanpur city has made a strong impact on Indias business landscape, and at the global level, too. Situated around 80km from Lucknow, the capital city of Uttar Pradesh, Kanpur stands on the banks of the river Ganga. The leather industry, which is now one of the biggest industry of Kanpur city with Unnao, earns Rs.6,000 crore a year in revenue. The city provides employment to 3.5 lakh people, of which about 2.25 lakh employees work in the organized sector and 1.25 lakh in the unorganized sector. The most advantageous things are that there is the better power supply and better road transport facilities for our businesses. Another big advantage is that there is the good availability of skilled labor. Talking about businesses in the leather industry in Kanpur, Anil Gupta, owner of Prachi Leathers, states, In our industry, environmental norms are stringent, and need to be followed at any cost. For example, we have a common effluent treatment plan, which caters to several SMEs in the leather segment in the region. The capacity of this plant is quite low as compared to the actual requirement. This needs to be checked. Proper monitoring on a regular basis is very much needed. Entrepreneurs too must adhere to the requirements, and follow the guidelines honestly. Guptas company exports leather shoes to the US, Italy, Germany, Canada and other countries. Similarly, Kanpur has plenty of firms that are operate on a global scale, and enjoy great credibility internationally. The city has high regards for its business capabilities and products. The credit for the citys high reputation and credibility at a global level largely goes to the entrepreneurs, who strive hard to make a positive impact in the market. No matter what the local challenges, no matter how tough business conditions are, the entrepreneurs from this part of the world will continue to grow, with this positive attitude towards business.

Environmental impact
In addition to the other environmental impacts of leather, the production processes have a high environmental impact, most notably due to: Heavy use of chemicals which causes pollution by the tanning process. Air pollution due to the transformation process, i.e. Hydrogen Sulfide during dehairing and Ammonia during deliming, solvent vapors. One tonne of hide or skin generally leads to the production of 20 to 80 m3 of turbid and foulsmelling wastewater, including chromium levels of 100400 mg/L, sulfide levels of 200800 mg/L and high levels of fat and other solid wastes, as well as notable pathogen contamination. Pesticides are also often added for hide conservation during transport. With solid wastes representing up to 70% of the wet weight of the original hides, the tanning process comes at a considerable strain on water treatment installations.

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Treatment of polluted Water

For maintain the purity of water, treatment of water are being done in two step process: Primary treatment of water Secondary treatment of water

Primary treatment
Primary treatment being done by all the Tannery by theirselve. In this process they treat the polluted water and try to separate the large part of pollutants and after that they use some process to separate some chemicals. For this treatment Tanner setups the Machinery by their own fund where sludge in the effluent can settle and where the pH is adjusted14. This means that the water they let out of their plant should contain no more than 600 mg per liter of suspended solids, 45 mg per liter of chrome and the pH should be in the range of 6.5 to 9.0.

Secondary treatment
After treated by the Primary process water goes through Secondary treatment process. This process is the responsibility of state government. Government collects all the Primary treated water by all the Tannery and treats it with a standard and specific process to separate all the pollutant and make it more clear water. After treated by all the processes, the treated water passes into the River for the sustainability and availability of water.

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Government Regulation and Support

Since pollution is considered an externality, i.e. a cost of production that is not included in a products market price, it is also considered a market inefficiency that the government could (or should) regulate to correct. Environmental regulation is the single most important factor to influence firms to consider environmental issues. The decision of how to respond to environmental regulations is based on a consideration of the potential economic benefits or disadvantages of complying and not complying. Firms that are more restricted financially (often smaller firms) are less likely to formulate an environmental plan than firms that are better off. Hence, less profitable firms are more likely to have a lower environmental performance. In addition, the regulators must have the administrative capacity to enforce the regulations. For the tanning industry, there are no international regulations, only domestic. However, the want to increase exports may induce governments and firms to let regulation other than the domestic influence production activities. The Government of India has announced various initiatives to make the leather industry more competitive. Key policy initiatives include: De-licensing of integrated tanneries that convert raw hides and skins into finished leather. Several leather goods have been de-reserved from the Small Scale sector. Free import of raw hides & skins, semi-finished and finished leather. Concessional duty on imported machinery and chemicals. Free export of raw hides & skins, semi-finished and finished leather and leather products. For the tanning industry in India, the main focus of the regulations has been on water pollution rather than problems related to air pollution and solid waste. In Kanpur, water pollution issues came into focus with the Ganga Action Plan (GAP), established by the Central and the UP governments in 1985. The GAP required that the water quality should be monitored and primary treatment of effluents should be undertaken. Under the GAP, another project, aided by the Dutch development agency, operated from 1987 to 1994 with the mission to prevent pollution of the river Ganges and improve living conditions of people in Jajmau. Among other things, this project included the construction of the CETP to treat tannery effluent. The regulations that the tanneries have to meet today are all related to water pollution, and the regulations have remained unchanged during the 1990s. There are certain standards for pH, total suspended solids, sulfides and chrome that the tannery effluent shall not exceed. Hence, all tanneries are required to treat their effluent before letting it out either to the sewer system or to a river.

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Statement of problem
SBI Local Head Office, Lucknow allotted my internship is Study on Scope and Opportunities to increase our SME business in Leather Industries at Kanpur and Unnao Center To find out what kind of service provide by the competitors in advance product. To find out the need and want of the customers of leather industries and hence formulate the strategy to level the economy in the society. How the products are helping the business. To know the utility of the product. To find out the need of the customer in Jajmau, Kanpur region and in Unnao introduce new product or facilitate new service in existing product.

Research objectives
Summer Internship is mutually beneficial both for me and for the bank. It gave me practical exposure and helps me in developing my interpersonal skills and acquiring on road side skills First and foremost objective is to explore the possibilities of SME Business in Kanpur and Unnao. Generating leads of SME loans from my collected information through survey forms To maintain good relationship with old customer and try to find out their satisfaction level. To know the competitors market share in Kanpur.

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 To know what kind of services competitor gives to their customers. To place SBI Advance Product ahead of the competitors. Switch other banks SME Loan customer to the State Bank of India. To make the customer aware of the benefits of the product and convince him to go for SBI Advance Product.

Significance and scope

The geographical scope of the study is restricted to Knapur only with sample size of 40 people. All the analysis and suggestions are based on the analysis of the both primary and secondary data. Therefore the scope of the study revolves around the following aspects: Consumer perception towards SBI SME Loan and services. Consumer awareness about SME Financing Product scheme and its benefit. Aware the Bank about the customer problems, especially in case of SME Loan documentation and about the accounts of the employees working in the Tannery.

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CHAPTER-3
Research methodology

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Research methodology
Research methodology is a methodology for collecting all sorts of information & data pertaining to the subject in question. The objective is to examine all the issues involved & conduct situational analysis. The methodology includes the overall research design, sampling procedure & fieldwork done & finally the analysis procedure. The methodology used in the study consistent of sample survey using both primary & secondary data. The primary data has been collected with the help of questionnaire as well as personal observation book, magazine; journals have been referred for secondary data. The questionnaire has been drafted & presented by the researcher himself.

Sample Size: Sample of 40 people was taken into study, and their data was collected Sampling Technique: To study the Project, a Simple Random Sampling technique is used. Data Collection:

Data collection is mainly dealt with the way data is collected. We have Collected data mainly through two ways1. Primary data collection we collected primary data by visiting individual 2. Houses and meeting with individual persons. We also visited some apartments 3. In Jajamu(Knapur), Leather Technology Park, Banther(Unnao) and Akrampur Industrial Area(Unnao). Here we meet with Managers and chief accountants of the Tanneries and tried to find the information about their requirement of fund to run or expansion of their business. 4. We also gave information to them and filled survey sheet by them.

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1. Secondary data collection it is collected through secondary sources like data

of already provided loan from the branch of Bank. After that we make call to them and make survey with visit.

Data Analysis: After data collection, Im able to analyze customers views, ideas and opinions related to Advance Product and about SBI Advance Product and from this, SBI will come to know the customer requirements. Data Interpretation: For easy interpretation of data table chart, pie chart, line and bar chart used with Some Quantitative technique. The total no. of respondent is taken as 100% and their response is denoted in percentage. It is very conspicuous for a person to understand it.

Classification & tabulation of data: The data thus collected were classified according to the categories, counting sheets & the summary tables were prepared. The resultant tables were one dimensional, two dimensional. Statistical tools used for analysis: Out of the total respondents, the respondents who responded logically were taken into account while going into statistical details & analysis of data. The tools that have been used for analyzing data & inference drawing are mainly statistical tools like percentage, ranking, averages, etc. As per questionnaire and market surveys I have find out different responses from different people. According to their responses I analyze the findings and draw certain remarks.

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CHAPTER-4
Analysis of data

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GRAPHICAL REPRESENTATION OF DATA

Q1. On which bank you depend for your regular transaction?

SBI Any other PSUs Private bank Foreign Bank TOTAL NO. OF PEOPLE

47 % (94) 37.5 % (75) 17% (26) 1.5% (03) 200

Sales

State Bank of India

Other PSUs

Any private Bank

Foreign Bank

It has been observed that approximately 47% correspondents are using the service of SBI for their daily transaction, around 33.5% of people are using the services of other PSUs (Mainly Bank of Baroda, PNB, Vijaya Bank, Corporation Bank) for their transaction and 17% of people are using HDFC, ICICI& other Private Bank service respectively in Kanpur and Unnao. Only 1.5%people uses foreign banks. It also shows that SBI have the highest market position in Kanpur and Unnao as per my sample.

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Q2. Are you satisfied with the products & services provided by SBI? YES NO Total No. of People 90% (36) 10% (04) 40

NO 10%

YES 90%

We can say that customers (around 90%) in Kanpur and Unnao have the idea about the Loan for SMEs of SBI they know about the all current offers of in LOANs, the rest 10% have the idea about the product they are using. In this 10% most of the people are from typically small producers of Raw Material.

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Q3. If yes are you aware of the loans for SMEs of SBI?

YES NO TOTAL NO. OF PEOPLE

95% 05% 40

% OF PEOPLE
5%

YES NO 95%

It is clear that most of the people have the idea about the advance product of SBI. Almost all the 90% people who have the idea about the advance product are the user of SBI product & service.

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Q4. Which bank you prefer for taking loans?

38% (15) SBI BOB STANDARD CHARTARED OTHER TOTAL NO. OF PEOPLE 13% (05) 13% (05) 38% (15) 40

Sales

38%

38%

SBI BOB standard chartard OTHER

13%

13%

According to my sample size 38% of people prefer SBI for loan product, but some people prefer BOB, Standard Chartard Bank or OTHER Bank for loan because they are working with that bank & it is easier for them to get loan from their bank & it easier for them to pay the interest because it is less as compare to other bank because they are the employee of that bank.

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Q5. What do you feel about the services providing by SBI in Loan for SMEs?

Dissatisfactory Moderate Satisfactory Delighted TOTAL NO. OF PEOPLE

4% 52% 37% 7% 40

CUSTOMER PERCEPTION TOWARDS THE SERVICE PROVIDE BY SBI IN ADVANCE PRODUCT 4% 7% 37%
Dissatisfactory

52%

Moderate Satisfactory Delighted

From this it is clear that the service provide by SBI in its advance product is good in between the customer. All of them satisfy with the product provide by SBI. 55% of people said that the service provide by SBI is good & 43% said it is excellent & just 2% of people said that it is satisfactory.

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Q6. Which features you like most in Loan segments of SBI? LESS PAPER WORK ATTRACTIVE INTEREST RATE TRANSPARENCY FAST PROCESSING LONGER REPAYMENT PERIOD HOME LOANS SERVICES 3% 35% 20% 2% 40%

55%

EMPLOYEE BEHAVIOUR

82%

TOTAL NO. OF PEOPLE

120

From this it is clear that the service provide by SBI in its advance product is good in between the customer. All of them satisfy with the product provide by SBI. 55% of people said that the service provide by SBI is good & 43% said it is excellent & just 2% of people said that it is satisfactory.

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FEATURES LIKE BY CUSTOMER

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Most of the people like the attractive interest rate & longer repayment period. Its easier for people to repay the whole loan amount with its interest with low interest rate and with longer repayment period.

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CHAPTER-5
Findings Suggestion & Recommendation Conclusion

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PROJECT Findings:
From this project it is found that SBI SME Loans having the 1st place in the market at Kanpur and Unnao, but HDFC and ICICI also working hard for for improving their market share in SME loan segment so they are the main threat or competitor. It has been observed that a person first of all come to the SBI for sanctioning their loan but bad response from SBI force them to switch to the other bank. All of SBI customers are satisfied with the services provided by the bank. Many of these customers are well aware of SBI and satisfied with the low interest rate and longer repayment period of the advance product. Most of the customers at Kanpur and Unnao feels that SBI really trying hard for improving their services. A response from customer care is so clear & good. Many customers have no time to call customer care so that they are not able to know about the service & features of SBI advance product. Most customers are shifted from other banks advance product to SBI because of hidden charges, high interest rate, less repayment period.

REASONS FOR HIGHLY USE OF SBI ADVANCE PRODUCT: LOWEST INTEREST RATES IN INDUSTRY LONGER REPAYMENT PERIOD THAT IS OF 30 YEARS LOWEST EMI FOR SME LOANs INTEREST CHARGED UPON REMAINING OF BALANCE QUICK PROCESSING

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Suggestion & Recommendation

Recommendation: Customer awareness programme is required so that more people should attract towards advance product. If there are any kind of hidden charges than that must disclose to customer before giving loan to them. SBI must take some steps so that customers can get their loan in time. Like phone verification by customer care that one customer is got their loan on time or not. It must be before a certain date so necessary steps can be taken. SBI should more concern about physical verification rather than phone verification so it will avoid fraud or cheating. Advance product selling agents must not give any type of wrong information regarding advance product. For the better service new offers would be require. SBI customer care should more concern about the fastest settlement of customer problems. Before deducting or charging any monetary charge SBI must consult with customer. Agents should be trained, well educated & proper trained to convince the people about different advance product. It is the duty of the bank to disclose all the material facts regarding advance product, like interest charged, repayment period, other types of charges, etc. Special scheme should be implemented to encourage both customer and agents. The bank should increase the period for repayment of loan. SBI should more focus on Retaining existing customers. SBI must focus on Segmentation based on customer knowledge Product offering based on customer demand. SBI must take feedbacks of customers regarding features & services.

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Conclusion
From the analysis part it can be conclude that customers have a good respond towards SBI advance products in Kanpur and Unnao. 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. Within a very short period of time the achievement made by SBI is excellent, what a normal bank cannot expect, but it is being done by SBI. It happens due to employee dedication towards the organization, fastest growing Indian economy, & brand image.

To be the largest advance product issuer, SBI should focus on Launch Innovative product Customized advance products Better customer services Fastest customers problem solving techniques Customer retention Apart from all the above, SBI believe in providing good customer services to their customers which is a key factor for success in future.

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Annexure

42

SURVEY FORMAT (EXISTING UNITS)

Name of the Unit/ Firm

Date of establishment Type of Business/Industry Address of the Unit/Firm Unit on rent/lease/owner shop Mobile No. Telephone No. e-mal ID Banking with Credit facility availed If Yes, name of Bank Type of credit facility Amount of loan availed If no, type of credit facility required Willing to take loan from SBI Amount of Loan required Impression about SBI Excellent/Good/Average/Below Average Fund based: Cash Credit/Term Loan Non fund based: LC/BG Cash Credit/Term Loan Y/N

Survey carried out by MANISH KUMAR SINGH

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SOME EXAMPLES OF THE SURVEY CONDUCTED BY OUR TEAM

Sample 1

SURVEY FORMAT (EXISTING UNITS)

Name of the Unit/ Firm Rahman Industries Ltd.

Date of establishment Type of Business/Industry Address of the Unit/Firm Unit on rent/lease/owner shop Mobile No. Telephone No. e-mal ID Banking with Credit facility availed If Yes, name of Bank Type of credit facility Amount of loan availed If no, type of credit facility required Willing to take loan from SBI Amount of Loan required Impression about SBI

28/10/1991 Manufacturing and export of Leather Goods 184/167, Wajidpur, Jajmau, Kanpur Owner 9839500670 0512-23931400,23931441

SBI Overseas Branch Kanpur Yes SBI 216 Crores on Credit Fund based: Cash Credit/Term Loan Non fund based: LC/BG Good

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Sample 2 SURVEY FORMAT (EXISTING UNITS)

Name of the Unit/ Firm Tanners India

Date of establishment Type of Business/Industry Address of the Unit/Firm Unit on rent/lease/owner shop Mobile No. Telephone No. e-mal ID Banking with Credit facility availed If Yes, name of Bank Type of credit facility Amount of loan availed If no, type of credit facility required Willing to take loan from SBI Amount of Loan required Impression about SBI

1992 Leather Industry 150 Feet Road, 38A Jajmau, Kanpur Owner

0512-2460778 info@tannersindia.com JK Bank, SBI, BOB Yes -

Yes As per need Below Average

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Sample 3 SURVEY FORMAT (EXISTING UNITS)

Name of the Unit/ Firm Alite Tannery

Date of establishment Type of Business/Industry Address of the Unit/Firm

1970 Leather Industry 116-C, Gajjupurwa, 150 Feet Road, Jajmau, Kanpur Owner 8400518424

Unit on rent/lease/owner shop Mobile No. Telephone No. e-mal ID Banking with Credit facility availed If Yes, name of Bank Type of credit facility Amount of loan availed If no, type of credit facility required Willing to take loan from SBI Amount of Loan required Impression about SBI

SBI Yes SBI Cash Credit ---

No

Excellent

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References

47

References
http://www.sbi.co.in/user.htm http://www.sbi.co.in/webfiles/uploads/files/1373614553213_SBI_UNABRIDGED_A NNUAL_REPORT_2012_13_ENGLISH.pdf http://www.deal4loans.com/home-loans-interest-rates.php http://www.moneycontrol.com/company-facts/statebankindia/shareholdingpattern/SBI http://www.businessdictionary.com/definition/researchmethodology.html#ixzz2bRyCysu7
Found out Leather Industries in Kanpur and Unnao with its Impact on Environment from CHALLENGES FACED BY LEATHER INDUSTRY IN KANPUR. A Journal by Shivam Gupta(IIT Kanpur)

Found the Government Regulation and Support from Strategies for Enhancing the Competitiveness of Leather Industry in India.
A Research paper by Mrs. Anamika Singh

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