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COMPANY PROFILE I. STATE OF

 OVERVIEW  INTERNATIONAL PRESENCE  HISTORY  ASSOCIATE  BRANCHES

State (SBI) (BSE: 500112, LSE: SBID) is the largest state- owned banking and company in India, by almost every parameter - revenues, profits, assets, market capitalization, etc. The bank traces its ancestry to British India, through the , to the founding in 1806 of the , making it the oldest in the Indian Subcontinent. merged into the other two presidency banks, Bank of Calcutta and to form Imperial Bank of India, which in turn became . The nationalized the Imperial Bank of India in 1955, with the taking a 60% stake, and renamed it the State Bank of India. In 2008, the Government took over the stake held by the Reserve Bank of India.

SBI provides a range of banking products through its vast network of branches in India and overseas, including products aimed at NRIs. The State Bank Group, with over 16,000 branches, has the largest banking branch network in India. With an asset base of $352 billion and $285 billion in deposits, it is a regional banking behemoth. It has a market share among Indian commercial banks of about 20% in deposits and advances, and SBI accounts for almost one- fifth of the nation's .

SBI has tried to reduce over-staffing by computerizing operations and "golden handshake" schemes that led to a flight of its best and brightest managers. These managers took the retirement allowances and then went on to become senior managers in new private sector banks.

The State bank of India is the 29th most reputed company in the world according to Forbes.

State Bank of India is the largest of the Banks of India, along with ICICI Bank, Punjab and — its main competitors.

Symbol and slogan

-> Symbol is the Key Hole, whose meaning is "Welcome to SBI". -> Slogans are:

 With you all the way  Pure banking nothing else  The Banker to every Indian  The Nation banks on The Symbol of State Bank of India is a Circle and not Key hole and a small man at the centre of the Circle. Circle depicts perfection and the common man being the centre of the banks business.

International presence

The bank has 131 overseas offices spread over 32 countries as on 31st Dec 2009. It has branches of the parent in , Dhaka, Frankfurt, Hong Kong, Johannesburg, and environs, Los Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, and , and representative offices in Bhutan and Cape Town

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 eight branches - seven branches in the state of California and one in Washington DC that it opened on 23 November 2009. The seven branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego and Bakersfield.

The Israeli branch of the "State Bank of India" located in Ramat Gan.

The Canadian subsidiary, State Bank of India (Canada) too dates to 1982. It has seven branches, four in the greater Toronto area and three in British Columbia.

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 . It now has five branches in Nigeria.

In Nepal, SBI owns 50% of Nepal SBI Bank, which has branches throughout the country. In Moscow SBI owns 60% of , with Canara Bank owning the rest. In Indonesia it owns 76% of PT Bank Indo Monex.

State Bank of India already has a branch in and plans to open one up in .

Company History:

State Bank of India (SBI) is that country's largest commercial bank. The government-controlled bank--the Indian government maintains a stake of nearly 60 percent in SBI through the central Reserve Bank of India--also operates the world's largest branch network, with more than 13,500 branch offices throughout India, staffed by nearly 220,000 employees. SBI is also present worldwide, with seven international subsidiaries in the United States, Canada, Nepal, Bhutan, Nigeria, Mauritius, and the , and more than 50 branch offices in 30 countries. Long an arm of the Indian government's infrastructure, agricultural, and industrial development policies, SBI has been forced to revamp its operations since competition was introduced into the country's commercial banking system. As part of that effort, SBI has been rolling out its own network of automated teller machines, as well as developing anytime-anywhere banking services through Internet and other technologies. SBI also has taken advantage of the deregulation of the Indian banking sector to enter the banc assurance, assets management, and securities brokering sectors. In addition, SBI has been working on reigning in its branch network, reducing its payroll, and strengthening its portfolio. In 2003, SBI reported revenue of $10.36 billion and total assets of $104.81 billion.

Colonial Banking Origins in the 19th Century

The establishment of the British colonial government in India brought with it calls for the formation of a Western-style banking system, if only to serve the needs and interests of the British imperial government and of the European trading houses doing business there. The creation of a national banking system began at the beginning of the 19th century.

The first component of what was later to become the State Bank of India was created in 1806, in Calcutta. Called the Bank of Calcutta, it was also the country's first joint stock company. Originally established to serve the city's interests, the bank was granted a charter to serve all of Bengal in 1809, becoming the Bank of Bengal. The introduction of Western-style banking instituted deposit savings accounts and, in some cases, investment services. The Bank of Bengal also received the right to issue its own notes, which became legal currency within the Bengali region. This right enabled the bank to establish a solid financial foundation, building an interest-free capital base.

The spread of colonial influence also extended the scope of government and commercial financial influence. Toward the middle of the century, the imperial government created two more regional banks. The Bank of Bombay was created in 1840, and was soon joined by the Bank of Madras in 1843. Together with the Bank of Bengal, they became known as the "presidency" banks.

All three banks were operated as joint stock companies, with the imperial government holding a one-fifth share of each bank. The remaining shares were sold to private subscribers and, typically, were claimed by the Western European trading firms. These firms were represented on each bank's board of directors, which was presided over by a nominee from the government. While the banks performed typical banking functions, for both the Western firms and population and members of Indian society, their main role was to act as a lever for raising loan capital, as well as help stabilize government securities.

The charters backing the establishment of the presidency banks granted them the right to establish branch offices. Into the second half of the century, however, the banks remained single-office concerns. It was only after the passage of the Paper Currency Act in 1861 that the banks began their first expansion effort. That legislation had taken away the presidency banks' authority to issue currency, instead placing the issuing of paper currency under direct control of the British government in India, starting in 1862.

Yet that same legislation included two key features that stimulated the growth of a national banking network. On the one hand, the presidency banks were given the responsibility for the new currency's management and circulation. On the other, the government agreed to transfer treasury capital backing the currency to the banks--and especially to their branch offices. This latter feature encouraged the three banks to begin building the country's first banking network. The three banks then launched an expansion effort, establishing a system of branch offices, agencies, and sub-agencies throughout the most populated regions of the Indian coast, and into the inland areas as well. By the end of the 1870s, the three presidency banks operated nearly 50 branches among them.

Funding National Development in the 20th Century

The rapid growth of the presidency banks came to an abrupt halt in 1876, when a new piece of legislation, the Presidency Banks Act, placed all three banks under a common charter--and a common set of restrictions. As part of the legislation, the British imperial government gave up its ownership stakes in the banks, although they continued to provide a number of services to the government, and retained some of the government's treasury capital. The majority of that, however, was transferred to the three newly created Reserve Treasuries, located in Calcutta, Bombay, and Madras. The Reserve Treasuries continued to lend capital to the presidency banks, but on a more restrictive basis. The minimum balance now guaranteed under the Presidency Banks Act was applicable only to the banks' central offices. With branch offices no longer guaranteed a minimum balance backed by government funds, the banks ended development of their networks. Only the Bank of Madras continued to grow for some time, supplied as it was by the influx of capital from development of trade among the region's port cities.

The loss of the government-backed balances was soon compensated by India's rapid economic development at the end of the 19th century. The building of a national railroad network launched the country into a new era, seeing the rise of cash-crop farming, a mining industry, and widespread industrial development. The three presidency banks took active roles in financing this development. The banks also extended their range of services and operations, although for the time being were excluded from the .

By the beginning of the 20th century, India's banking industry boasted a host of new arrivals, and particularly foreign banks authorized to exchange currency. The growth of the banking sector, and the development of indigenous banks, in turn created a need for a larger "bankers' bank." At the same time, the Indian government had outgrown its colonial background and now required a more centralized banking institution. These factors led to the decision to merge the three presidency banks into a new, single and centralized banking institution, the Imperial Bank of India.

Created in 1921, the Imperial Bank of India appeared to inaugurate a new era in India's history--culminating in its declaration of independence from the British Empire. The Imperial Bank took on the role of for the Indian government, while acting as a bankers' bank for the growing Indian banking sector. At the same time, the Imperial Bank, which, despite its role in the government financial structure remained independent of the government, carried on its own commercial banking operations.

In 1926, a government commission recommended the creation of a true central bank. While some proposed converting the Imperial Bank into a central banking organization for the country, the commission rejected this idea and instead recommended that the Imperial Bank be transformed into a purely commercial banking institution. The government took up the commission's recommendations, drafting a new bill in 1927. Passage of the new legislation did not occur until 1935, however, with the creation of the Reserve Bank of India. That bank took over all central banking functions.

The Imperial Bank then converted to full commercial status, which accordingly allowed it to enter a number of banking areas, such as currency exchange and trustee and estate management, from which it had previously been restricted. Despite the loss of its role as a government banking office, the Imperial Bank continued to provide banking services to the Reserve Bank, particularly in areas where the Reserve Bank had not yet established offices. At the same time, the Imperial Bank retained its position as a bankers' bank.

Into the early 1950s, the Imperial Bank grew steadily, dominating the Indian commercial banking industry. The bank continued to build up its assets and capital base, and also entered a new phase of national expansion. By the middle of the 1950s, the Imperial Bank operated more than 170 branch offices, as well as 200 sub-offices. Yet the bank, like most of the colonial government, focused primarily on the country's urban regions.

By then, India had achieved its independence from Britain. In 1951, the new government launched its first Five Year Plan, targeting in particular the development of the country's rural areas. The lack of a banking infrastructure in these regions led the government to develop a state-owned banking entity to fill the gap. As part of that process, the Imperial Bank was nationalized and then integrated with other existing government-owned banking components. The result was the creation of the State Bank of India, or SBI, in 1955.

The new state-owned bank now controlled more than one-fourth of India's total banking industry. That position was expanded at the end of the decade, when new legislation was passed providing for the takeover by the State Bank of eight regionally based, government-controlled banks. As such the Banks of Bikaner, Jaipur, Idnore, Mysore, Patiala, , Saurashtra, and became subsidiaries of the State Bank. Following the 1963 merger of the Bikaner and Jaipur banks, their seven remaining subsidiaries were converted into associate banks.

In the early 1960s, the State Bank's network already contained nearly 500 branches and sub-offices, as well as the three original head offices inherited from the presidency bank era. Yet the State Bank now began an era of expansion, acting as a motor for India's industrial and agricultural development, that was to transform it into one of the world's largest financial networks. Indeed, by the early 1990s, the State Bank counted nearly 15,000 branches and offices throughout India, giving it the world's single largest branch network.

SBI played an extremely important role in developing India's rural regions, providing the financing needed to modernize the country's agricultural industry and develop new irrigation methods and cattle breeding techniques, and backing the creation of dairy farming, as well as pork and poultry industries. The bank also provided backing for the development of the country's infrastructure, particularly on a local level, where it provided credit coverage and development assistance to villages. The nationalization of the banking sector itself, an event that occurred in 1969 under the government led by Indira Gandhi, gave SBI new prominence as the country's leading bank.

Even as it played a primary role in the Indian government's industrial and agricultural development policies, SBI continued to develop its commercial banking operations. In 1972, for example, the bank began offering merchant banking services. By the mid-1980s, the bank's merchant banking operations had grown sufficiently to support the creation of a dedicated subsidiary, SBI Capital Markets, in 1986. The following year, the company launched another subsidiary, SBI Home Finance, in a collaboration with the Housing Development Finance Corporation. Then in the early 1990s, SBI added subsidiaries SBI Factors and Commercial Services, and then launched institutional investor services.

Competitor in the 21st Century

SBI was allowed to dominate the Indian banking sector for more than two decades. In the early 1990s, the Indian government kicked off a series of reforms aimed at deregulating the banking and financial industries. SBI was now forced to brace itself for the arrival of a new wave of competitors eager to enter the fast-growing Indian economy's commercial banking sector. Yet years as a government-run institution had left SBI bloated--the civil-servant status of its employees had encouraged its payroll to swell to more than 230,000. The bureaucratic nature of the bank's management left little room for personal initiative, nor incentive for controlling costs.

The bank also had been encouraged to increase its branch network, with little concern for profitability. As former Chairman Dipankar Baku told the Banker in the early 1990s: "In the aftermath of bank nationalization everyone lost sight of the fact that banks had to be profitable. Banking was more to do with social policy and perhaps that was relevant at the time. For the last two decades the emphasis was on physical expansion."

Under Baku, SBI began retooling for the new competitive environment. In 1994, the bank hired consulting group McKinsey & Co. to help it restructure its operations. McKinsey then led SBI through a massive restructuring effort that lasted through much of the decade and into the beginning of the next, an effort that helped SBI develop a new corporate culture focused more on profitability than on social and political policy. SBI also stepped up its international trade operations, such as foreign exchange trading, as well as corporate finance, export credit, and international banking.

SBI had long been present overseas, operating some 50 offices in 34 countries, including full-fledged subsidiaries in the United Kingdom, the United States, and elsewhere. In 1995 the bank set up a new subsidiary, SBI Commercial and International Bank Ltd., to back its corporate and international banking services. The bank also extended its international network into new markets such as Russia, China, and South Africa.

Back home, in the meantime, SBI began addressing the technology gap that existed between it and its foreign-backed competitors. Into the 1990s, SBI had yet to establish an automated teller network; indeed, it had not even automated its information systems. SBI responded by launching an ambitious technology drive, rolling out its own ATM network, then teaming up with GE Capital to issue its own . In the early 2000s, the bank began cross-linking its banking network with its ATM network and Internet and telephone access, rolling out "anytime, anywhere" banking access. By 2002, the bank had succeeded in networking its 3,000 most profitable branches.

The implementation of new technology helped the bank achieve strong profit gains into the early years of the new century. SBI also adopted new human resources and retirement policies, helping trim its payroll by some 20,000, almost entirely through voluntary retirement in a country where joblessness remained a decided problem.

By the beginning of 2004, SBI appeared to be well on its way to meeting the challenges offered by the deregulated Indian banking sector. In a twist, the bank had become an aggressor into new territories, launching its own line of banc assurance products, and also initiating securities brokering services. In the meantime, SBI continued its technology rollout, boosting the number of networked branches to more than 4,000 at the end of 2003. SBI promised to remain a central figure in the Indian banking sector as it entered its third century.

Principal Subsidiaries: Bank of Bhutan (Bhutan); Indo Nigeria Merchant Bank Ltd. (Nigeria); Nepal SBI Bank Ltd. (Nepal); SBI (U.S.A.); SBI (Canada); SBI Ltd.; SBI Cards & Payments Services Ltd.; SBI Commercial and International Bank Ltd.; SBI European Bank plc (U.K.); SBI Factors & Commercial Services Ltd.; SBI Funds Management Ltd.; SBI Gilts Ltd.; SBI Home Finance Ltd.; SBI Securities Ltd.; State Bank International Ltd. (Mauritius); State Bank of Bikaner & Jaipur; ; ; ; ; State Bank of Saurastra; .

Principal Competitors: ICICI Bank; ; Canara Bank; ; Bank of India; ; ; HDFC Bank; Oriental Bank of Commerce. Evolution of State Bank of India can be traced back to the first decade of the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809. It was the first ever joint-stock bank of the British India, established under the sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the modern banking scenario in India, until when they were amalgamated to form the Imperial Bank of India, on 27 January 1921.

An important turning point in the history of State Bank of India is the launch of the first Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in general and the rural sector of the country, in particular. Until the Plan, the commercial banks of the country, including the Imperial Bank of India, confined their services to the urban sector. Moreover, they were not equipped to respond to the growing needs of the economic revival taking shape in the rural areas of the country. Therefore, in order to serve the economy as a whole and rural sector in particular, the All India Rural Credit Survey Committee recommended the formation of a state-partnered and state- sponsored bank.

The All India Rural Credit Survey Committee proposed the takeover of the Imperial Bank of India, and integrating with it, the former state-owned or state- associate banks. Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This resulted in making the State Bank of India more powerful, because as much as a quarter of the resources of the Indian banking system were controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried out by the 480 offices comprising branches, sub offices and three Local Head Offices, inherited from the Imperial Bank. Instead of serving as mere repositories of the community's savings and lending to creditworthy parties, the State Bank of India catered to the needs of the customers, by banking purposefully. The bank served the heterogeneous financial needs of the planned economic development.

Associate Banks

SBI has five associate banks that with SBI constitute the State Bank Group. All use the same logo of a blue keyhole and all the associates use the "State Bank of" name followed by the regional headquarters' name. Originally, the then seven banks that became the associate banks belonged to princely states until the government nationalized them between October, 1959 and May, 1960. In tune with the first Five Year Plan, emphasizing the development of rural India, the government integrated these banks into State Bank of India to expand its rural outreach. There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline operations.

The first step towards unification occurred on 13 August 2008 when merged with SBI, reducing the number of state banks from seven to six. Then on 19 June 2009 the SBI board approved the merger of its subsidiary, State Bank of Indore, with itself. SBI holds 98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the government hold the balance of 1.77 %.)

The acquisition of State Bank of Indore added 470 branches to SBI's existing network of 12,448 and over 21,000 ATMs. Also, following the acquisition, SBI's total assets will inch very close to the Rs 10-lakh crore mark. Total assets of SBI and the State Bank of Indore stood at Rs 998,119 crore as on March 2009. The process of merging of State Bank of Indore was completed by April 2010, and the SBI Indore Branches started functioning as SBI branches on 26 August 2010.

Branches:

The corporate center of SBI is located in . In order to cater to different functions, there are several other establishments in and outside Mumbai, apart from the corporate center. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices, located at major cities throughout India. It is recorded that SBI has about 10000 branches, well networked to cater to its customers throughout India.

State Bank of India has 131 foreign offices in 32 countries across the globe.

 SBI has about 21000 ATMs and SBI group (including associate banks) has about 45000 no of ATMs.  SBI has 26500 branches, inclusive of branches that belong to its Associate banks.  SBI alone has 13076 Branches (including the branches of State Bank of Indore), as on 26 August 2010.

II. NEPAL SBI BANK

 INTRODUCTION OF NEPAL SBI BANK  MANAGEMENT TEAM  LOCATIONS & BRANCHES  DIFFERENT PRODUCTS  ACHIEVMENT

Introduction Nepal SBI Bank Ltd. (NSBL) is the first Indo-Nepal joint venture in the financial sector sponsored by three institutional promoters, namely State Bank of India, Employees Provident Fund and Agricultural Development Bank of Nepal through a Memorandum of Understanding signed on 17th July 1992. NSBL was incorporated as a public limited company at the Office of the Company Registrar on April 28, 1993 under Regn. No. 17- 049/50 with an Authorized Capital of Rs.12 Crores and was licensed by Nepal Rastra Bank on July 6, 1993 under license No. NRB/l.Pa./7/2049/50. NSBL commenced operation with effect from July 7, 1993 with one full-fledged office at Durbar Marg, Kathmandu with 18 staff members. The staff strength has since increased to 511. Under the Banks & Financial Institutions Act, 2063, Nepal Rastra Bank granted fresh license to NSBL classifying it as an "A" class licensed institution on April 26, 2006 under license No. NRB/I.Pra.Ka.7/062/63. The Authorized, Issued and Paid-Up Capitals have been increased to Rs. 200 Crores, Rs. 166.16 Crores and Rs. 165.36 Crores, respectively. The management team and the Managing Director who is also the CEO of the Bank are deputed by SBI. SBI also provides management support as per the Technical Services Agreement. Fifty five percent of the total share capital of the Bank is held by the State Bank of India, fifteen percent is held by the Employees Provident Fund and thirty percent is held by the general public.

Management Team

Managing Director Mr. N.K. Chari

Assistant General Chief Operating Chief Financial Manager Officer Officer Mr. T.R. Gautam Mr. Madhukar Anand Mr. B.K. Mishra

Branches of Nepal SBI Bank Ltd.

DIFFERENT PRODUCTS OF NEPAL SBI BANK:

1) DEPOSIT SCHEMES  Current account  Saving account  Fixed deposit  Swamim bachat  Ujjwal Bhavisya bachat  Dhanvriddhi bachat yujana  Indreni bachat  Provident fund account  501 saving  Swastha bachat khata  Varistha Nagarik Bachat  Vishesh Bachat

2) LOAN SCHEMES  Home loan  Education loan   Mortgage loan  Doctor plus  Teacher plus  SME loan for small & medium enterprises  Cash credit  Project term loan  Demand loan  Trust receipt loans  Pre shipment loan  Other commercial loan

3) PREPAID CARDS  Bharat yatra cards

4) UTILITY BILL PAYMENT  Ntc bill payment Services

AWARDS AND RECOGNIZATIONS BY NEPAL SBI BANK: © 2008 Nepal SBI Bank.

Nepal SBI Bank has won the Soaltee Crown Plaza Super Sixes Cricket Tournament this year. In the final contested on Saturday, 9th October 2010, Nepal SBI Bank defeated Bank by 20 runs. Nepal SBI Bank remained undefeated throughout the tournament and its captain Monish Kumar Shrestha was adjudged Player of the Series for his brilliant performances with both bat and ball during the tournament.

Victorious Team Nepal SBI after winning the tournament

Nepal SBI Bank--the Best Commercial Bank 2008-09(2010-06-09)

Nepal sbi received the award on behalf of bank in a ceremony organized in Kathmandu on June 8, 2010. Nepal SBI Bank is awarded with the boss 7th Top Ten Business Excellence Award under "Best Commercial Bank of the Year 2008-09" category.Mr. B K Mishra, bank's Chief Financial Officer.

Nepal SBI Bank – the best commercial Bank 2008 – 2009.

Surya Nepal Boss Top 10- 7th Business Excellence Awards for the year 2008-2009

Introduction to Advance Product:

Not all people have the capacity to fulfill their requirement by their own earning, that’s why they need help from others. For this so many government and private sector bank provide them money to fulfill their requirement, that’s call the Advance product (loan product) of the bank. All the bank have so many different types of advance product as per the requirement of the people or customers. In Nepal there are so many banks those provide loans to the people for different causes. Now a day a large number 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.

House loan: Home loan/House loan means to buy a home/house on installment. In simpler term someone wants to own a home but can’t afford to pay the amount in lump sum, he can pay the money in monthly installment interest rates. You can be avail loan againsts the existing house for renovation or expansion etc. The housing finance scheme brings an excellent opportunity to have your own house or flat. The scheme has been carefully tailored to suit your requirements and match your capacity. The reasonable rate of interest that you pay will be calculated on reducing balance, i.e. you do not have to pay interest on the loan installments actually repaid from the date of such repayment.

Home Loan Types: Owing a piece of land or property is a lifetime dream for every individual. There are many home loan providers in the market to make the dream come true. Before taking home loan one must consider certain factors related to property that are interested in buying and also about the salient features offered by a home loan provider and also study some home loan and home FAQs which helps in applying a home loan in Nepal. There are different types of home loans like Bridge loan, Home construction loans, Home equity loans, Home extension loans, Home improvement loan, Land purchase loans etc for different schemes available in the market. The different types of home loans of Nepal SBI Bank LTD tailored to meet the requirement of the customer are as follows:

 Home purchase loans: These are the basic form of home loans used for purchasing of a new house.  Home Improvement Loan: These loans are given for implementing repairs works, healing & renovation in a home that has already been purchased.

 Home Construction Loan: These loans are available for a construction of a new house.

 Home Extension Loan: These loans are given for expanding or extending on existing home. For e.g. addition of an extra room.

Nepal SBI Housing Loan Scheme

The purpose of Housing Loan Scheme is i. To help purchase or construct a new house/flat, or extend an existing house ii. To help purchase an existing house/flat iii. To help repair or renovate an existing house/flat. iv. For taking over the existing housing loans from Banks/Financial Institutions.

Margin: Minimum 25% of the project cost . Interest Rate: Presently 13% p.a. for loans up to 5 years and 13.50% p.a. for loans beyond 5 years and up to 15 years. The interest is payable on quarterly basis during moratorium period, thereafter on monthly basis (in Equated Monthly Installment basis. Processing charge: The processing charge is 0.5% of the loan amount.

Repayment Programme Moratorium: Maximum 1 year period from date of the first disbursement or one month after the completion of the house whichever is earlier Repayment Period: the Housing Loan shall be repaid in equated monthly installments within 15 years excluding the moratorium period.

Prepayment charges: 1% of the amount being prepaid if the borrower repays from his own source. Prepayment charge at the rate of 2% shall be levied if the loan is being swapped.

Eligibility : The eligibility of the loan taker on the basis of their age is as follow: Minimum age: 18 years Maximum age: 55 years.

EMI: The method for calculation of emi is as follows: Loan amount(Rs) : ______Interest rates (%) : ______Term (Months) : ______Calculate Monthly payment(EMI):______Quantrum of loan:  Up to 75% of the purchase price(inclusive of registration expenses) but not exceeding the distress value of the property.  Up to 75% of the total assets in the case of new construction as well as extension/renovation 0f an existing building.  Up to 90% of extension /renovation cost in case of extension/renovation on the existing building provided that no loan exist on the already build portion of the building.  Up to 60% of the construction cost can be reimbursed for the building completed within the last year.  Up to 100% of the loan outstanding in case of take over. However the takeover value shall be justifiable with the project cost within adequate margin of the borrower.

Document Required: Most importantly, all deals and offers agreed upon are supported by relevant papers. Self employed and salaried require different documents to support the deal. First of all, home loan application form is required which should be properly filled up. Then all the required documents should be attached with the application.

Eligibility: Banks determine the eligibility based on applicant repayment capacity and discuss about the loan amount upfront. The eligibility for acquiring a home loan is augmented by clubbing income of the applicant’s father/spouse/mother/son, by clearing applicant’s outstanding debts, by stretching the loan tenure, salaried individuals can increased their eligibility by showing their performance linked income or bonus earned. Secondly, it is recommended to make the uncommitted monthly income (income-expenses) should be more than 1.33times of emi.

Statement of problem

 To know about the what kind of policy applied by the Nepal SBI Bank on house loan.  To find out what kind of services provide by the Nepal SBI Bank in advance product.  To find out the need of the customer and hence formulate the strategy to level the economy in the society.  To find out the need of the customer in kathmandu city and facilitate new services in house loan product.  To find out how the home loan product are helping the customer.  To know the utility of the product.

Research objectives

Summer project gives a practical exposure and helps in acquiring the road skills.  To study the cost of home loans provided by the bank.  To know the consumer perception about the home loan of Nepal SBI Bank. .  To set standard for quality assurance of the services offered to consumer.  To generate the lead through the survey.  To sort out the prospectives leads from the data I have collected through the survey.  To maintain good relationship with the corporate employes.  To place Nepal SBI advance product(house loan) ahead of the compititors.  To make the customer aware of the benefits of the home loan product.  To develop the possitive attitudes towards the housing loan of Nepal SBI Bank Ltd.

Significance and scope

 The data covers only the comparative study of the housing loan policy of Nepal SBI bank Ltd.  It doesn’t deal with all the analysis of banking policy and its functions.  The source of data obtained will mostly depend upon secondary data  The data obtained will not be accurate and reliable.  The data has been made for the partial fulfillment of BBA degree so the finding cannot be generalized.

Research methodology

Research methodology is a methodologgy for collecting all sorts of information and data pertaining to the subject in question. The objective is to examine all the issues involved and conduct situational analysis. The methodology section includes all the research design issues, such as the population and sample, sampling procedure and field work done, variables and the measure used data collection methods, and finally the data-analysis techniques to be used in the study. The methodology used in the study consistent of sample survey using both primary and secondary data.

 Data collection and processing method The data is collected through: 1. Primary data 2. Secondary data

Primary data : The data which are originally collected by an investigator or researcher or agent for the first time for the purpose of statistical inquiry are known as primary data.

Method used for collecting primary data:  Direct personal interview  Indirect oral interview  Schedule through enumerator etc…

Secondary data: The data which are originally collected but obtained from some published or unpublished sources are called secondary data. The data in not original in character.

Method used for collecting secondary data  Published sources  Unpublished sources

 Data Analyis

After data collection, I’m able to analyse about advance product i.e house loan of Nepal SBI Bank.