role of sbi & hdfc in business finance

7/30/2019 Role of Sbi & Hdfc in Business Finance

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Role of SBI & HDFC in Business Finance

CHAPTER 1

INTRODUCTION

Business Finance

Finance is the process of channeling funds from savers to users in the form of credit,loans, or invested capital through agencies including commercial banks, savings andloan associations, and such nonbank organizations as credit unions and investmentcompanies. Finance can be divided into three broad areas: business finance, personalfinance, and public finance. All three involve generating budgets and managing fundsfor the optimum results.

Business finance is the task of providing the funds for a corporation's activities. Forsmall business, this is referred to as SME finance (Small and Medium Enterprises). Itgenerally involves balancing risk and profitability, while attempting to maximize anentity's wealth and the value of its stock.

Long term funds are provided by ownership equity and long-term credit, often in theform of bonds. The balance between these forms the company's capital structure.Short-term funding or working capital is mostly provided by banks extending a line ofcredit.

Another business decision concerning finance is investment, or fund management. Aninvestment is an acquisition of an asset in the hope that it will maintain or increase itsvalue. In investment management in choosing a portfolio one has to decide what,how much and when to invest. To do this, a company must:

Identify relevant objectives and constraints: institution or individual goals, time horizon,risk aversion and tax considerations;

Identify the appropriate strategy: active v. passive hedging strategy

Measure the portfolio performance

Financial management is duplicate with the financial function of the Accountingprofession. However, financial accounting is more concerned with the reporting ofhistorical financial information, while the financial decision is directed toward the futureof the firm.

Raising and managing of funds by business organizations. Such activities are usuallythe concern of senior managers, who must use financial forecasting to develop a long-term plan for the firm. Shorter-term budgets are then devised to meet the plan's goals.When a company plans to expand, it may rely on cash reserves, expected increases insales, or bank loans and trade credits extended by suppliers. Managers may alsodecide to raise long-term capital in the form of either debt (bonds) or equity (stock). The

value of the company's stock is a constant concern, and managers must decideMarketing Research DIMAT Page 1


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whether to reinvest profits or to pay dividends. Other duties of financial managersinclude managing accounts receivable and fixing the optimum level of inventories.When deciding how to deploy corporate assets to increase growth, financial managersmust also consider the benefits of mergers and acquisitions, analyzing economies ofscale and the ability of businesses to complement each other.

Company Profile

STATE BANK OF INDIA

Type : Public (BSE, NSE:SBI) & (LSE: SBID)

Industry : Banking

Insurance

Capital Markets

Founded : 1806Calcutta, Bengal Presidency, British India (as Bank of Calcutta)

Headquarters : Corporate Centre,

Madam Cama Road,

Mumbai 400 021 India

Key people : Om Prakash Bhatt, Chairman

Revenue : Rs 113,535.99 crore (US$ 25.32 billion) (2009)

Net income : Rs 10,998 crore (US$ 2.45 billion)(2009)

Total assets : Rs 1,188,060 crore (US$ 264.94 billion)(2009)

Total equity : Rs 65,912 crore (US$ 14.7 billion) (2009)

Employees : 205,896

Website : www.sbi.co.inl

STATE BANK OF INDIA:-Not only many financial institution in the world today can claim the antiquity and

majesty of the State Bank Of India founded nearly two centuries ago with primarilyintent of imparting stability to the money market, the bank from its inception mobilizedfunds for supporting both the public credit of the companies governments in the threepresidencies of British India and the private credit of the European and India merchantsfrom about 1860s when the Indian economy book a significant leap forward under the

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impulse of quickened world communications and ingenious method of industrial andagricultural production the Bank became intimately in valued in the financing ofpractically and mining activity of the Sub- Continent Although large European and Indianmerchants and manufacturers were undoubtedly thee principal beneficiaries, the smallman never ignored loans as low as Rs.100 were disbursed in agricultural districts

against glad ornaments. Added to these the bank till the creation of the Reserve Bank in1935 carried out numerous Central Banking functions.

Adaptation world and the needs of the hour has been one of the strengths of theBank, In the post depression exe. For instance when business opportunities becomeextremely restricted, rules laid down in the book of instructions were relined to ensurethat good business did not go post. Yet seldom did the bank contravenes its value asdepart from sound banking principles to retain as expand its business. An innovativearray of office, unknown to the world then, was devised in the form of branches, subbranches, treasury pay office, pay office, sub pay office and out students to exploit theopportunities of an expanding economy. New business strategy was also evaded way

back in 1937 to render the best banking service through prompt and courteous attentionto customers.

A highly efficient and experienced management functioning in a well definedorganizational structure did not take long to place the bank an executed pedestal in theareas of business, profitability, internal discipline and above all credibility A impeccablefinancial status consistent maintenance of the lofty traditions if banking an observationof a high standard of integrity in its operations helped the bank gain a pre- eminentstatus. No wonders the administration for the bank was universal as key functionaries ofIndia successive finance minister of independent India Resource Bank of governors andrepresentatives of chamber of commercial showered economics on it.

Modern day management techniques were also very much evident in the goodold days years before corporate governance had become a puzzled the banks boundfunctioned with a high degree of responsibility and concerns for the shareholders.Unbroken records of profits and a fairly high rate of profit and fairly high rate of dividendall through ensured satisfaction, prudential management and asset liability managementnot only protected the interests of the Bank but also ensured that the obligations tocustomers were not met. The traditions of the past continued to be upheld even to thisday as the State Bank years itself to meet the emerging challenges of the millennium.

ABOUT LOGO

THEPLACE TOSHARE THE

NEWS ...



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SHARE THE VIEWS

Togetherness is the theme of this corporate loge of SBI where the world ofbanking services meet the ever changing customers needs and establishes a link that islike a circle, it indicates complete services towards customers. The logo also denotes a

bank that it has prepared to do anything to go to any lengths, for customers.

The blue pointer represent the philosophy of the bank that is always looking forthe growth and newer, more challenging, more promising direction. The key holeindicates safety and security.

MISSION, VISION AND VALUES

MISSION STATEMENT:

To retain the Banks position as premiere Indian Financial Service Group, withworld class standards and significant global committed to excellence in customer,shareholder and employee satisfaction and to play a leading role in expanding anddiversifying financial service sectors while containing emphasis on its developmentbanking rule.

VISION STATEMENT:

Premier Indian Financial Service Group with prospective world-class

Standards of efficiency and professionalism and institutional values.

Retain its position in the country as pioneers in Development banking.

Maximize the shareholders value through high-sustained earnings per

Share.

An institution with cultural mutual care and commitment, satisfying and

Good work environment and continues learning opportunities.

VALUES:

Excellence in customer service

Profit orientation

Belonging commitment to Bank

Fairness in all dealings and relations

Risk taking and innovative



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Team playing

Learning and renewal

Integrity

Transparency and Discipline in policies and systems.

PRODUCTS & SERVICES

PRODUCTS:

State Bank of India renders varieties of services to customers through the following

products:

Personal Loan Product:

SBI Term Deposits

SBI Recurring Deposits

SBI Housing Loan

SBI Car Loan

SBI Educational Loan

SBI Personal Loan

SBI Loan For Pensioners

Loan Against Mortgage Of Property

Loan Against Shares & Debentures

Rent Plus Scheme

Medi-Plus Scheme

Rates Of Interest

SBI Housing loan

SBI Housing loan or Mortgage Loan schemes are designed to make it simple foryou to make a choice at least as far as financing goes!



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'SBI-Home Loans'

Features:

No cap on maximum loan amount for purchase/ construction of house/ flat Option to club income of your spouse and children to compute eligible loan amount

Provision to club expected rent accruals from property proposed to compute eligible loanamountProvision to finance cost of furnishing and consumer durables as part of project cost

Repayment permitted upto 70 years of age

Free personal accident insurance cover

Optional Group Insurance from SBI Life at concessional premium (Upfront premiumfinanced as part of project cost)

Interest applied on daily diminishing balance basis

'Plus' schemes which offer attractive packages with concessional interest rates to Govt.Employees, Teachers, Employees in Public Sector Oil Companies.

Special scheme to grant loans to finance Earnest Money Deposits to be paid to UrbanDevelopment Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat

No Administrative Charges or application fee

Prepayment penalty is recovered only if the loan is pre-closed before half of the originaltenure (not recovered for bulk payments provided the loan is not closed)

Provision for downward refixation of EMI in respect of floating rate borrowers who availHousing Loans of Rs.5 lacs and above, to avail the benefit of downward revision ofinterest rate by 1% or more

In-principle approval issued to give you flexibility while negotiating purchase of aproperty

Option to avail loan at the place of employment or at the place of construction

Attractive packages in respect of loans granted under tie-up with Central/ StateGovernments/ PSUs/ reputed corporates and tie-up with reputed builders (Please

contact your nearest branch for details)

SERVICES:

DOMESTIC TREASURY SBI VISHWA YATRA FOREIGN TRAVEL CARD BROKING SERVICES REVISED SERVICE CHARGES ATM SERVICES INTERNET BANKING E-PAY E-RAIL



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RBIEFT SAFE DEPOSIT LOCKER GIFT CHEQUES MICR CODES

FOREIGN INWARD REMITTANCES

ATM SERVICES

STATE BANK NETWORKED ATM SERVICES

State Bank offers you the convenience of over 8000 ATMs in India, the largest networkin the country and continuing to expand fast! This means that you can transact free ofcost at the ATMs of State Bank Group (This includes the ATMs of State Bank of Indiaas well as the Associate Banks namely, State Bank of Bikaner & Jaipur, State Bank ofHyderabad, State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State

Bank of Saurashtra, and State Bank of Travancore) and wholly owned subsidiary viz.SBI Commercial and International Bank Ltd., using the State Bank ATM-cum-Debit(Cash Plus) card.

KINDS OF CARDS ACCEPTED AT STATE BANK ATMs

Besides State Bank ATM-Cum-Debit Card and State Bank International ATM-Cum-Debit Cards following cards are also accepted at State Bank ATMs: -

1) State Bank Credit Card

2) ATM Cards issued by Banks under bilateral sharing viz. Andhra Bank,AxisBank, Bank of India, The Bank of Rajasthan Ltd., Canara Bank, Corporation Bank,Dena Bank, HDFC Bank, Indian Bank, Indus Ind Bank, Punjab National Bank, UCOBank and Union Bank of India.

3) Cards issued by banks (other than banks under bilateral sharing) displaying Maestro,Master Card, Cirrus, VISA and VISA Electron logos

4) All Debit/ Credit Cards issued by any bank outside India displaying Maestro, MasterCard, Cirrus, VISA and VISA Electron logos

Note: If you are a cardholder of bank other than State Bank Group, kindly contact yourBank for the charges recoverable for usage of State Bank ATMs.

STATE BANK INTERNATIONAL ATM-CUM-DEBIT CARD

Eligibility:



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All Saving Bank and Current Account holders having accounts with networked branches andare:

18 years of age & above

Account type: Sole or Joint with Either or Survivor / Anyone or Survivor

NRE account holders are also eligible but NRO account holders are not.

Benefits:

Convenience to the customers travelling overseas

Can be used as Domestic ATM-cum-Debit Card

Available at a nominal joining fee of Rs. 200/-

Daily limit of US $ 1000 or equivalent at the ATM and US $ 1000 or equivalent atPoint of Sale (POS) terminal for debit transaction

Purchase Protection*up to Rs. 5000/- and Personal Accident cover*up to Rs.2,00,000/-

Charges for usage abroad: Rs. 150+ Service Tax per cash withdrawal Rs. 15 +Service Tax per enquiry.

State Bank ATM-cum-Debit (State Bank Cash plus) Card:

Indias largest bank is proud to offer you unparalleled convenience viz. State BankATM-cum-Debit(Cash Plus) card. With this card, there is no need to carry cash in yourwallet. You can now withdraw cash and make purchases anytime you wish to with yourATM-cum-Debit Card.

Get an ATM-cum-Debit card with which you can transact for FREE at any of over 8000ATMs of State Bank Group within our country.

SBI GOLD INTERNATIONAL DEBIT CARDS

E-PAY



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Bill Payment at Online SBI (e-Pay) will let you to pay your Telephone, Mobile,Electricity, Insurance and Credit Card bills electronically over our Online SBI website

E-RAIL

Book your Railways Ticket Online.

The facility has been launched wef Ist September 2003 in association with IRCTC. Thescheme facilitates Booking of Railways Ticket Online.

The salient features of the scheme are as under:

All Internet banking customers can use the facility.

On giving payment option as SBI, the user will be redirected to onlinesbi.com.After logging on to the site you will be displayed payment amount, TID No. and

Railway reference no.

. The ticket can be delivered or collected by the customer.

The user can collect the ticket personally at New Delhi reservation counter.

The Payment amount will include ticket fare including reservation charges,courier charges and Bank Service fee of Rs 10/. The Bank service fee hasbeen waived unto 31st July 2006.

SAFE DEPOSIT LOCKERFor the safety of your valuables we offer our customers safe deposit vault or lockerfacilities at a large number of our branches. There is a nominal annual charge, whichdepends on the size of the locker and the centre in which the branch is located.

NRI HOME LOAN

SALIENT FEATURESPurpose of LoanLoans to NRIs & PIOs can be extended for the following purposes.

To purchase/construct a new house / flat To repair, renovate or extend an existing house/flat

To purchase an existing house/flat

To purchase a plot for construction of a dwelling unit.

To purchase furnishings and consumer durables, as a part of the project cost

AGRICULTURE / RURAL



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State Bank of India Caters to the needs of agriculturists and landless agriculturallabourers through a network of 6600 rural and semi-urban branches. here are 972specialized branches which have been set up in different parts of the countryexclusively for the development of agriculture through credit deployment. Thesebranches include 427 Agricultural Development Branches (ADBs) and 547 branches

with Development Banking Department (DBDs) which cater to agriculturists and 2Agricultural Business Branches at Chennai and Hyderabad catering to the needs ofhitech commercial agricultural projects.

BUSINESS STRATEGY

Institution for advanced learning: to provide state of the art training in financial products

to middle level and senior level executives.

Internal consultant/change agent: to act as a catalyst for change in attitudes and

orientation of banking staff and to provide expertise and consultative support

Feedback supplier: to capture and structure feedback from trainees and from the market

Think tank: to provide expert and inform suggestions, model business strategies, analysis

of market developments from a banker perspective.

Research and development role: to carry out research on contemporary subjects that are

relevant to the banks short term and medium term and operational needs and policy

formulation

Overlapping staff training centers: to validate and closely monitor the staff training

centers in seven circles attached to the academy.

Role of SBI in Business Finance in Raipur City:-

Business Loan

Traders Easy LoanScheme:

This scheme is launched by SBI to provide hassle free loan to Traders. Any business

man/ entrepreneur/ Professional and self employed person can avail this loan. Loanunder the scheme can be availed to meet normal business requirements and issanctioned against equitable mortgage of property. Any residential or commercialproperty in the name of unit/ proprietor/partner OR their close relatives is acceptable.Agriculture property or property outside urban limits is not accepted.

The advance can be availed by way of Loan or Cash Credit limit. It can also be availedfor Non Fund Based requirements (for issuance of Bank guarantees or LCs). CashCredit limit or non fund based limit is renewable every 12 mths.Loan can be repaid inmonthly or quarterly, even half yearly installments - as may be suitable to the borrower in a period upto 5 years.



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Minimum and maximum amount of loan is Rs 25,000/- and Rs 5.00 Crore. Margin is35%. i.e. loan can be upto 65% of the realizable value of the property or the businessrequirement- whichever is less. Business requirement is assessed on the basis ofprojected business turnover. Interest at floating rate is charged at monthly intervals ondaily reducing balance.

No Third party guarantee is required to avail the loan.

Retail Trade

The Bank finances Small Business activities that can be started with relatively lowerinvestment and with no special skills on the part of the entrepreneurs.

In this category, the SBI extends loans to retail traders who act as a vital link betweenthe manufacturers of goods or commodities and the consumer.

The bank offers working capital products as well as loans for purchase, renovation and

repairing of equipment.

Retail trade finance is normally capped at Rs 5 lakh. Any individual or a firm(partnership or proprietorship) engaged primarily in buying and selling mercantile goodsis eligible for this mode of finance.

For requirements up to Rs 25,000, no margins are involved. For needs ranging from Rs25,000 to Rs 50,000, the margin is set at 20 per cent. In other words, the quantum ofthe loan will be restricted to 80 per cent of the unit's expenditure. For fund needs aboveRs 50,000, a 25 per cent margin may be applied.

Security

Loan amount Primary Collateral

Loan upto Rs.25000/- Charge over the assetspurchased out of Banksfinance

Nil

Above Rs.25,000/- Charge over the assetspurchased out of Banksfinance

Charge Over theimmovable/movableassets/third party guaranteeas per RBI guidelines

Flexi LoanEligibility

Should have earned a pre-tax profits in each of the immediately preceding 3

years The trader should be well established and should have a proven record of

profitability

PurposeThe loan can be considered for any general purposes like



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Holding of stocks/book debts

Acquisition of land and building

Building construction/up gradation and renovation of offices, showrooms,

godowns etc

Substitution of high cost debt

Shoring of networking capital

Computerization expenditure

Nature of facility:

Term loan

Margin:20%

Tenure of Loan:

3 to 5 years. Repayment to be made in monthly, quarterly instalments as per the normal

cash generation cycle.

Primary security:- Hypothecation charge over the Current Assets and Fixed assets.

Where finance is extended for acquisition of land and building, building construction, up

gradation and renovation of offices, showrooms and godowns etc. equitable mortgage

of relative fixed assets will be considered as the primary security.

Collateral security:- Tangible security such as immovable property, bank deposits,

NSC, RBI relief bonds etc to the extent of a minimum of 100% of the limits sanctionedpersonal guarantees of proprietor/partners/promoters to be invariably obtained.

Loan amount

Min Rs. 1 lakh

Max Rs. 10 lakhs



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HDFC BANK:-

HDFC Bank

Type : Public (BSE500180,NYSE: HDB)Industry : Banking

Insurance

Capital Markets and allied industries

Founded : 1994Calcutta, Bengal Presidency, British India (as Bank of Calcutta)

Headquarters : Mumbai, India

Key people : Mr. Aditya Puri, Managing Director

Mr. Harish Engineer, Executive Director

Revenue : Rs 197.5 billion (2009)

Net income : Rs 2.24 billion (2009)

Total assets : Rs 1.8TRIillion (2009)

Employees : 52687 (2009)

Website : www.hdfc.com

HDFC bank is very consistent player in the new private sector banks. New privatesector banks to withstand the competition from public sector banks came up withinnovative products and superior services.

2001

Branches 43%

ATM 40%

Phone Banking

14%

Internet 2%

Mobile 1%



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2005

Branches 17%

ATM 45%

Phone Banking

12%

Internet 25%

Mobile 1%

(%customer initiated Transaction by Channel)



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PRODUCTS & CUSTOMER SEGMENTS:-

Loan Product Deposit Product Investment & Insurance

Auto Loan

Loan AgainstSecurity

Loan AgainstProperty

Personal loan

Credit card

2-wheeler loan

Commercial vehicles

finance

Home loans Retail business

banking Tractor loan

Working CapitalFinance

ConstructionEquipment Finance

Health Care Finance

Education Loan

Gold Loan

Saving a/c

Current a/c

Fixed deposit

Demat a/c

Safe DepositLockers

Mutual Fund

Bonds

Knowledge Centre

Insurance

General and HealthInsurance

Equity and Derivatives

Mudra Gold Bar

Cards Payment Services Access To Bank

Credit Card

Debit Card

Prepaid Card--------------------------------

Forex Services

----------------------------

Product & Services

Trade Services

Forex serviceBranch Locater

RBI Guidelines

NetSafe

Merchant

Prepaid Refill

Billpay

Visa Billpay

InstaPay

DirectPay

VisaMoney Transfer

eMonies ElectronicFunds Transfer

Online Payment ofDirect Tax

NetBanking

OneView

InstaAlertMobileBanking

ATM

Phone Banking

Email Statements

Branch Network



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WHOLESALE BANKING

Corporate Small and Medium

Enterprises

Financial Institutions and Trusts

FundedServices

Non FundedServices

Value AddedServices

InternetBanking

Funded Services

Non Funded Services

Specialized Services

Value added services

Internet Banking

BANKS

Clearing Sub-Membership

RTGS submembership

Fund Transfer

ATM Tie-ups

Corporate Salary a/c

Tax CollectionFinancial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts

BUSINESS MIX

HDFC Bank is a consistent player in the private sector Bank and have a wellbalanced product and business Mix in the Indian as well as overseas markets.

Customer segments (retail & wholesale) account for 84% of Net revenues ( FY2008)

Higher retail revenues partly offset by higher operating and credit costs. Equally well positioned to grow both segments.



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NRI SERVICES

Accounts & Deposits Remittances

Rupee Saving a/c

Rupee Current a/c

Rupee Fixed Deposits

Foreign Currency Deposits

Accounts for Returning Indians

North America

UK

Europe

South East Asia

Middle East

Africa

Others

Quick remit

IndiaLink

Cheque LockBox

Telegraphic/ Wire Transfer

Funds Transfer Cheques/DDs/TCs

Investment & Insurances Loans

Mutual Funds

Insurance

Private Banking

Portfolio Investment Scheme

Home Loans

Loans Against Securities

Loans Against Deposits

Gold Credit Card

Payment Services Access To Bank

NetSafe

BillPay

InstaPay

DirectPay

Visa Money

Online Donation

NetBanking

OneView

InstaAlert

ATM

PhoneBanking

Email Statements

Branch Network



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BUSINESS STRATEGY

HDFC BANK mission is to be "a World Class Indian Bank", benchmarking themselvesagainst international standards and best practices in terms of product offerings,technology, service levels, risk management and audit & compliance. The objective is tobuild sound customer franchises across distinct businesses so as to be a preferredprovider of banking services for target retail and wholesale customer segments, and toachieve a healthy growth in profitability, consistent with the Bank's risk appetite. Bankis committed to do this while ensuring the highest levels of ethical standards,professional integrity, corporate governance and regulatory compliance. Continue todevelop new product and technology is the main business strategy of the bank.Maintain good relation with the customers is the main and prime objective of the bank.

HDFC BANK business strategy emphasizes the following:-

Increase market share in Indias expanding banking and financial servicesindustry by following a disciplined growth strategy focusing on quality andnot on quantity and delivering high quality customer service.

Leverage our technology platform and open scalable systems to deliver moreproducts to more customers and to control operating costs.

Maintain current high standards for asset quality through disciplined credit riskmanagement.

Develop innovative products and services that attract the targetedcustomers and address inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce banks cost of funds.

Focus on high earnings growth with low volatility.

Role of HDFC bank in Business Finance in Raipur City

Business Loan:-

Small & Medium Enterprises:-At HDFC Bank we understand how much of hard work goes into establishing a

successful SME. We also understand that your business is anything but "small" and as

demanding as ever. And as your business expands and enters new territories andmarkets, you need to keep pace with the growing requests that come in, which maylead to purchasing new, or updating existing plant and equipment, or employing newstaff to cope with the demand. Thats why we at HDFC Bank have assembled products,services, resources and expert advice to help ensure that your business excels.

Funded Services

Funded Services from HDFC Bank are meant to directly bolster the day-to-day working

of a small and a medium business enterprise. From working capital finance to credit

substitutes; from export credit to construction equipment loan - we cater to virtually



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every business requirement of an SME. Click on the services below that best define

your needs.

Working Capital Finance

Commercial Vehicle finance

Construction Equipment Loan

Short Term Finance

Bill Discounting

Credit Substitutes

Export Credit

Structured Cash Flow Financing

Real Estate Initiatives

Non-Funded Services

Under Non-Funded services HDFC Bank offers solutions that act as a catalyst to propel

your business. Imagine a situation where you have a letter of credit and need finance

against the same or you have a tender and you need to equip yourself with a guarantee

in order to go ahead. This is exactly where we can help you so that you don't face any

roadblocks when it comes to your business. The following are the services that will

precisely tell you what we can do.

Business Accounts

HDFC Bank Trade

Letters of Credit

Guarantees

Collection of Documents

Cash Management Services

Forex Desk

Money Market Desk

Derivatives Desk

Services to Employee Trusts

Services to Cash Surplus Corporate



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Tax Collection

Bankers to Rights/Public Issue

Specialized Services

HDFC Bank is one of the most trusted entities when it comes to specialised services

like selling of precious metals to customers. Under specialised services you can also

avail customised control of your value chain through our internet banking platform.

Precious Metals

Channel Financing

Value Added Services

There is a plethora of services that we offer under value added services. There'scorporate salary account which ensures smooth payment methods to your staff. You

can avail an assortment of credit cards and debit cards from our merchant services.

The following are the highlights of this service:

Real Time Gross Settlement

Corporate Salary Accounts

Reimbursement Account

Merchant Services

Custody Services

HDFC Bank Gold Business Credit Card

Internet Banking

Internet banking is a revolutionary service under the banking sector and HDFC Bank is

a forerunner in providing you with this service. We provide state-of-the-art payment

gateway services to industries and companies in order to ease transaction processing.

This in turn enhances the credibility of your business and makes banking extremelycost-efficient.



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CHAPTER 2

OBJECTIVE OF THE STUDY

THE PURPOSE OF THE RESEARCH

The basic purpose of this research is to find the Role of SBI & HDFC bank in business

finance in Raipur City.

OBJECTIVESThe objectives of the study are as follows:

1) The objective of study was to find the role of SBI & HDFC bank in businessfinance in Raipur.

2) To find which bank provide more business finance in Raipur & why?

PROBLEM

To find out problem is the first stage of the research process. It represents translatingthe management problem into research problem. It is right said, A problem well definedis half solved.

State Bank of India (SBI) is the country's largest commercial bank.

HDFC Bank always believed in winning the hearts of its customers with quality products

and services.Marketing Research DIMAT Page 21


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Inspite of product quality, services SBI & HDFC Bank provides why do still prefer moreto SBI bank for business finance.

Limitations

The survey was conducted within the limited time frame; so fewshortcomings may be expected.

The respondents personal bias may be another factor, which isuncontrollable.

The finding of the survey is strictly based on the responses of therespondents. It is difficult to find the euthenics be true, so we areassuming them to be true.

It was very difficult to explain the respondents about how to fill the

questionnaire & it took time for data collection.

CHAPTER 3

LITERATURE REVIEW

By Richard G.P. McMahon, Scott Holmes

Sound financial management is crucial to the survival and well-being of smallenterprises of all types. Studies of reasons for small business failure inevitably showpoor or careless financial management to be the most important cause (see Berryman1983, Peacock 1985 for reviews of the relevant literature). Potts (1977, p.2) states thecase more succinctly:

. . . the clearest and most startling distinctions between successful and discontinued

small businesses lie in their approach to the uses which can be made of accountinginformation ....

In recognition of such findings, recent years have seen increased attention to financialmanagement in small business training and education programs and in the many booksand articles written for small business.

It is not unreasonable to ponder whether this attention has had a visible impact on theway in which small businesses are operated. It seems appropriate to review, andattempt to integrate, available empirical research findings concerning the financialmanagement practices of small business in North America. Such a review can lead to

improved understanding of both the research conducted to date and the financialMarketing Research DIMAT Page 22


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management practices under scrutiny. Furthermore, it can act as a stimulus for futureresearch.

An additional function of this review is to identify and highlight trends in the financialmanagement practice of small firms. This will assist policymakers in understanding the

financial environment in which small firms operate and the possible impact of thecurrent and proposed policies directed at the small business sector. Over the pastdecade there has been a significant increase in government sponsored agencies andeducational programs directed at the small business sector and in interest in smallfirms, as illustrated by the President's annual report on small business. Such attentionwarrants consideration as to whether these policies have positively influenced thefinancial practices of small firms. This article provides a concise summary of researchevidence which indicates that financial practice among small firms has not experiencedany significant change over the past fifteen years. This result should have impact onfuture policy decisions.

NORTH AMERICAN PRACTICE

Accounting Systems

It is clear that significant progress has been made in encouraging small businessowner-managers to install and use accounting information systems. For example, in asurvey of over 360 small businesses in Georgia, DeThomas and Fedenberger (1985)found a high standard of financial recordkeeping. Around 92 percent of respondents hadsome form of record-keeping beyond check stubs and deposit receipts. D'Amboise andGasse (1980) studied the utilization of formal management techniques in 25 small shoemanufacturers and 26 small manufacturers in the plastics industry in Quebec, Canada.

A cost accounting system was in operation in about 88 percent of businesses studied.

It is also clear that the availability of affordable computers and suitable software hasplayed an important part in promoting this situation. In a survey of 129 smallmanufacturing businesses in the province of Quebec, Raymond and Magnenat-Thalmann (1982) discovered a preponderance of accounting-related applicationsamong computer software in use, particularly in the areas of accounts receivable,payroll, accounts payable, general ledger, sales analysis, and inventory. Further studiesundertaken in a wide variety of settings by Cheney (1983), Raymond (1985), Malone(1985), DeThomas and Fredenberger (1985), Farhoomand and Hryck (1985), andNickell and Seado (1986) confirm that accounting/financial management applicationsdominate as computer applications in the small businesses examined.

Financial Reports

Reflecting the availability of computerized accounting systems, there is some evidencethat the standard of financial reporting in small businesses in North America is nowquite high. DeThomas and Fredenberger (1985) found that 81 percent of the smallbusinesses in their survey regularly produced summary financial information. Virtuallyall (91 percent) of the summary information was in the form of traditional financialstatements (balance sheet, income statement, funds statement, etc.), with theremainder being bank reconciliations and operating summaries. However, none of the



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respondents were regularly producing cashflow information. Additional financialinformation respondents would like to have included were a cashflow summary (67percent) and a contribution-format (percent-of-sales) income statement (43 percent).

Further encouraging results are provided by a study of 398 small pharmacies located in

the states of Michigan, North Carolina, Nebraska, Rhode Island and Washingtonreported by Thomas and Evanson (1987). Income statements and balance sheets wereprepared at least quarterly by 62.5 percent of the respondents, and annually by 32.1percent. Over 85 percent of the respondents indicated that an outside accountant...

CHAPTER 4

RESEARCH METHODOLOGY

Research Tools:

The research tool used for this research is PRIMARY DATA and SECONDARY DATA.

In primary data the following research design is being followed:

i) Exploratory Research:

Questionnaire Survey (Sample Size 100)

ii) Descriptive Research:

On the basis of the questionnaire survey, the analysis is done inorder to find out the reason why people are interested in businessfinance in SBI or HDFC bank

We have used 2 types of research design they are



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a) Exploratory research

b) Descriptive research

Exploratory: - In this preliminary data are gathered to shed light on the trial

nature of the problem & possibly suggest some new ideas.

Descriptive: -That is to describe certain magnitudes, such as how manybusiness institutions are fully satisfied with the business finance plan of SBI orHDFC.

Exploratory research because we did not know the actual problem faced in BusinessFinance by SBI & HDFC. So for that we did an In-depth interview of 100 businessinstitutions to find what the major difficulties are faced by these two banks.

In the interview we asked about business finance of SBI & HDFC bank in different

business institutions.

We found that

a) Major business institutions who take finance from SBI are satisfied.

b) The institutions have trust on SBI as SBI is a Public Ltd Bank.

c) SBI gives the chance to pay in easily instalment to the bank

d) SBI takes fewer securities.

e) SBI provides better facilities

f) HDFC Bank always believed in winning the hearts of its customers withquality products and services.

From the detailed interview of these 100 business institutions we thought that majorreasons which can affect the business finance decision of people towards SBI & HDFCbank are

1) Easily instalment

2) Fewer securities

3) Better facilities

Sources of collecting data :-

There are two types of data: -

Primary Data

Secondary Data



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Primary data can be collected either by census method or by sampling method. Incensus method data is collected from all individual units concerned with the enquirywhile in a sampling method we take a few representatives items from the totalobservation concerned with enquiry.

I. Primary Data: -

The primary data is one which is collected by the investigator himself for the first timefor e.g. to know the intelligence quotient of the students we can give them the test &collect the relevant data ourselves. The data so collected will be primary data. In India

There are various agencies, which collect primary data: national sample survey,organization is one of them. National council of applied economic research is another &so on data collected in the population census constitutes primary data.

Methods of collecting Primary Data

Direct personal investigation

The investigator has to contact the sources of information directly & personally. Thismethod of collecting data is quite suitable

When the area of investigation is limited.

When a higher degree of accuracy is needed.

When the result of the investigation are to be kept confidential

When the area of investigation is complex & heterogeneous.

When a greater degree of intellectual power experiences & labors are required.

2. Questionnaires method: -

Questionnaires refer to a device for securing answers to question by using a form,which the respondent fills in himself. The numerator goes to the informants withprepared questionnaires & gets the replied question. This method is generally used bypublic organization like NCAER etc. for the research project that need a high rate ofresponse.

3. MAIL SURVEY

4. BY TELEPHONE

II. SECONDARY DATA



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Data that has been collected for another purpose, but may be reanalyzed in asubsequent study .Data, documents, records, or specimens that have been collected, orwill be collected solely for non-research purposes (such as medical treatment ordiagnosis) and are in existence prior to the beginning of the study.

Published accessible data from a variety of sources for research and other purposes.

SOURCES OF SECONDARY DATA

PUBLISHED SOURCES: -

There are certain international, national & local agencies which published statistical dataon a regular basis certain periodicals are published regularly. Moreover there arecertain research organizations, which publish magazines or other periodicals. These

sources can be summed up as follows; -

International publication

Official publication of central & state govt.

Semi-official publication

Committee report

Private publications

SAMPLE

Sampling Frame:

A Sampling frame consists of a list of item from which the sample is to be drawn.

The sample frame for this research constitutes all the business institutions in RaipurCity.

Sampling Unit:

A decision has to be taken concerning a sampling unit before selecting samplesampling unit may be a geographical one, a construction unit, a social unit or it may bean individual.

The sample unit for this research constitutes the business institutions.

Sample Size:

The sample size of our research was 100 but only 75 institutions give reply.



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Sample Size Selection:

Sample size was selected on the basis of the 3 factors.

It was difficult to find out that which business institutions has taken

loan. The respondents were not much educated so it was difficult to

make them understand about the questionnaire.

Business institutions were not easily available.



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CHAPTER 6

DATA INTERPRITATION

The sample was 150 but out of which 29 people dint went to Tanishq for buying of gold.

So our sample size came to 121.



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Out of 121 there were 65 female that constitute 54% of total sample & rest are male

they are 56 which contributes 46% of total sample.

FROM THE ABAVE TABLE WE FIEND THAT MOST OF THE PEOPLE WHO VISITED

TANISHQ STORE MONTHLY INCOME IS MORE THAN RS-30000.



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The respondents average income lies from 5000 to 30000 & above so respondents

were

a) 5000 10000 = 6

b) 10000 20000 = 11

c) 20000 30000 = 18

d) 30000 & above = 86



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The above chart gives us the detail of people who visits Tanishq for repurchase where

we find 77% people are not going to repurchase at Tanishq and 23% people had gone

for repurchase.



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Avave table and chart shows 88% people aware about Tanishq show room in Kolkata

that mean most of the people aware about Tanishq in Kolkata.



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From above written table and chart the researcher find People know about Tanishq

from TV 19%,News paper 31%,Hoarding 30%,Friends 10%,Pamphiets 10%.So we

conclude that most effective media for Tanishq is News paper.



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From the above written table the researcher find out 39% of people recommend other

people to buy gold from Tanishq and 61% people not.



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According to survey of researcher 22% people said Tanishq is V.good, 38% said

average,19% said good,15% said bad and 6% said very bad.



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From the above given table researcher find that 42% of the gold consumers are loyal to

their gold store.



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From the above given table and chart we find about different stores of gold in Kolkata

and which one people prefer most.There are five different stores of gold in Kolkata like

Senko gold, Sudha jeweler,P.C.Chandra,Tanishq,and local store.People like most local

than P.C.Chandra.

In the above given data table researcher shoes that

a) According to the survey people say price of Tanishq is not up to the mark and it

is too high.



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b) Quality of gold is very high in Tanishq.

c) Service they providing is also good most of the people says that.

d) Patterns available is average to good.

e) Location of the store is very good.

f) Ambiance of the store is also good.

CHAPTER 7

FINDINGS

On the basis of chi-square test the relation between the variables are significant & few

are not significant.



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Variables which were significant in the research & which affects the buying behavior of

gold are

a) Because of price people are not visiting Tanishq.

b) People are happy with the quality of Tanishq & they go to Tanishq only

because the purity & quality of gold.

c) The people also visit Tanishq because they provide better services then the

other retailers.

d) The pattern are also major factor because of which people does not prefer

Tanishq.

e) The people says that the location of store is not affecting them to visit

Tanishq.

f) People are not affected by the ambiance of store

From these we can conclude that people are more sencisitve towards price , Quality &

availability of pattern. If they find these 3 things ok & they fill that this is what they

wanted they will buy from there only.

For people of vapi ambiance , proximity to market & service are less important.

Conclusion

People are more price conscious & they feel that the price in Tanishq are more than

what the normal retailers have. They also feel that the quality they get is much higher

than the quality what the normal retailers give. They also found that the patterns

available are lesser than what they get in the normal retail store. They also are service

oriented so they are more attracted because of service they get. People are not affected

with the ambiance of the shop.

Recommendation



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We would recommend Tanishq following things

a) The making charge is affecting their sales so they should cut down their

prices.

b) The patterns are comparative less so they should provide more number of

patterns & also should increase their market share by bringing more

innovative scheme & loyalty programs.

c) People are more service conscious so they can target young business man &

young professional as they are now more in investing money in gold.

d) Gold price are increasing day by day so they should increase their sales by

selling biscuits of gold rather than selling more of ornaments.



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CHAPTER 8

Questionnaire

DISHA INSTITUTE OF TECHNOLOGY AND MANAGEMENT

Dear Sir/Madam

I am the students of 2nd Year MBA Course of DIMAT. As a part of our research study I

am conducting a survey regarding the perception of people regarding the purchase of

gold from different organized & Un organized Retailers.

Guidelines for filling the form:-

1) Please check the box wherever required.

2) Only 1 check per question.

Q 1 ) Name:-________________________________________________________

Q 2) Gender - male female

Q 3) Age :- _________________

Q 4) Occupation: - Service Business Others

Others:-__________________________



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Q 5) Monthly average INCOME?

5000-10000 10000-20000 20000-30000 30000 & above

Q 6) how often you visit jewellery store?

Once a month once a year

On Occasion

Q 7) You Buy jewellery from

Place Store Name

Kolkata ___________________

Howrah ___________________

Saltlake ___________________

Dumdum ___________________

Others ___________________

Q 8) do you buy jewellery from same store every time ?

Yes No

If Yes/No Why?

___________________________________________________________

Q 9 ) Rate your jewellery store from 1 to 5

where 1 is the WORST & 5 is the BEST

a) Product are worth price you pay ?



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b) Purity & quality of gold ?

c) The service you get in the store ?

d) The Number of patterns available ?

e) Proximity to market ?

f) Ambiance of Store ?

Q 10) Are You aware about tanishq showroom opened in vapi?

Yes No

Q 11) How did you come to know about Tanishq?

TV News Paper Hoardings

Pamphlets Friends/relatives Others

Q 12) Have you visited Tanishq Store?

Yes No

Q 13) Rate Tanishq On flowing Criteria Given below

Particular V.Good

Good Average

Bad

V.bad

a) Price



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b) Purity & Quality of Goldc) Service Offeredd) Patterns Availablee) Location of Storef) Ambiance of store

Q 14) During Re-Purchase you often go to Tanishq?

Yes No

Q 15) Would you recommend others for Buying Tanishq Products?

Yes No

Q 16) Rate tanishq on over all basis?

Particular V.Good Good Average Bad V.badTanishq As a Store

Thank you

Bibliography

Tanishq Website

Tanishq Outlet

Marketing Research TextBook



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THANK YOU