SBI Home Loan Customer Perception Survey

1. A Project Presentation on
“Customer Satisfaction Survey on
Home Loan Product of
State Bank of India “
16-Sep-2013
Presented by
P Sunil Kumar (A13020)
Ashish Ranjan (A13004)
Vaibhav Jain (A13021)
Maruthi Nataraj K (A12009)

2. AGENDA
• History and Evolution of SBI
• Positioning of SBI
• Advertising and Sales promotion
• Market Segmentation
• SBI Home Loan product
• Competitive strategies adopted by SBI
• Distribution Strategy of SBI
• Future directions for SBI
• Research Methodology
• Analysis and Inference
• Recommendations

3. HISTORY AND EVOLUTION OF SBI
• Amalgamation of Presidency Banks on 27-Jan-1921
• Nationalization of Imperial Bank of India on 1955
• Birth of State Bank of India
• State Bank of India (Subsidiary Banks) Act, 1959
• Logo of SBI
• Slogan – The Bank to Every Indian
• Mission Statement
• Vision Statement

4. HISTORY AND EVOLUTION OF SBI
Structure – Current Board of Directors
As on 14 January 2013, there are fifteen members in the SBI board of
directors:• Pratip Chaudhuri (Chairman)
• Hemant G. Contractor (Managing Director)
• Arundhati Bhattacharya (Managing Director)
• A. 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)

5. HISTORY AND EVOLUTION OF SBI

6. POSITIONING OF SBI
• SBI as centuries-old brand
• Emphasis on Pure Banking
• Entry into many businesses with
strategic tie ups
- Pension Funds
- General Insurance
- Mobile Banking etc

7. ADVERTISING AND SALES PROMOTION
ADVERTISING
• Participation in various consumer exhibition and
meetings
• Tie-ups with builders / car and other vehicle dealer
• Festive loan products
• Advertising in TV and Newspapers
• Oral Marketing
• Ads at various display boards
• CSR Initiatives
• Social Media

8. ADVERTISING AND SALES PROMOTION
SALES PROMOTION
• Loyalty Rewards
Program – Online Banking
• SBI Cards – Cash Back
Offers

9. MARKET SEGMENTATION
• Geographic Segmentation
- Metro, Urban, Semi Urban and Rural branches
• Psychographic (social class/lifestyle) Segmentation

10. MARKET SEGMENTATION
• Demographic Segmentation

11. MARKET SEGMENTATION
• Segmentation on the basis of wholesale market

12. SBI HOME LOAN PRODUCT
• SBI Home Loan
- SBI Easy Home Loan for Loan <= 30L
- SBI Advantage Home Loan for Loan > 30L
• Features
• Purpose
• Eligibility
• Amount
- 40 to 60
times of NMI
• Other variants

13. COMPETITIVE STRATEGIES ADOPTED BY SBI
Porter’s five forces model for SBI

14. COMPETITIVE STRATEGIES ADOPTED BY SBI
SBI SWOT Analysis

15. COMPETITIVE STRATEGIES ADOPTED BY SBI
SBI SWOT Analysis
• IT Plan by KPMG (consultant) - 2001
• Business Process Reengineering – 2004
• BaNCS (core banking software) by TCS
• Effective training methodology
- National level Apex Training Institutes
- State level learning centers
- Case studies, Group Discussions, Project Work etc
- E-learning for enhancement of employees’ skills

16. DISTRIBUTION STRATEGY OF SBI
SBI SWOT Analysis
• Branches
• ATMs
• Internet banking
• Mobile banking
• POS
• Kiosk banking

17. FUTURE DIRECTIONS FOR SBI
• Go closer to people as banking habit spreads
(Reach masses with customized products)
• Sustain customer loyalty
• Give better value to customers on deposit side too
• Take corrective measures to ensure % of bad loans
is below the industry average
• Make mobile banking more popular
• Think strategically on Data mining/CRM based
campaigns.

18. RESEARCH METHODOLOGY
• List of Hypothesis to be tested
- H1: All the features of SBI Home Loan
including interest rates are in public domain
making it the most preferred Home Loan
provider.
- H2: SBI offers customer centric services pre
and post disbursal of home loan.
- H3: TV and Newspaper advertisements are
important sources of awareness on SBI Home
Loan.
• Sampling plan and Sampling Size
- Sample Size - 63
- Sample plan - Random Sampling Plan

19. ANALYSIS AND INFERENCE

20. ANALYSIS AND INFERENCE

21. ANALYSIS AND INFERENCE

22. ANALYSIS AND INFERENCE

23. ANALYSIS AND INFERENCE

24. ANALYSIS AND INFERENCE

25. ANALYSIS AND INFERENCE

26. ANALYSIS AND INFERENCE

27. ANALYSIS AND INFERENCE

28. ANALYSIS AND INFERENCE

29. ANALYSIS AND INFERENCE

30. ANALYSIS AND INFERENCE

31. ANALYSIS AND INFERENCE
Mean : SBI – 3.94 ICICI – 2.79
HDFC – 2.95 AXIS – 3.08

32. ANALYSIS AND INFERENCE

33. ANALYSIS AND INFERENCE
Mean : SBI – 3.70 ICICI – 2.87
HDFC – 2.94 AXIS – 2.97

34. ANALYSIS AND INFERENCE
Mean : SBI – 3.29 ICICI – 3.10
HDFC – 3.11 AXIS – 2.89

35. ANALYSIS AND INFERENCE
Mean : SBI – 2.98 ICICI – 3.14
HDFC – 3.19 AXIS – 3.08

36. ANALYSIS AND INFERENCE
Mean : SBI – 3.03 ICICI – 3.11
HDFC – 3.21 AXIS – 3.14

37. ANALYSIS AND INFERENCE

38. ANALYSIS AND INFERENCE
Mean : SBI – 3.06 ICICI – 3.29
HDFC – 3.30 AXIS – 3.27

39. ANALYSIS AND INFERENCE

40. • Features
RECOMMENDATIONS
• Try to ease the documentation burden on the customer (within the
regulatory framework)
• Focus more on process automation for efficient Home Loan sanction
procedure and reduced TAT
• Customer Service
• Provide essential training for employees with regular monitoring to be
more responsive organization in terms of customer service
• Advertisements
• Come up with more creative and innovative ways with emphasis on social
media to advertise Home Loan product in TV and Newspapers
• Create more awareness on Home
customers
Loan variants among potential

41. BIBLIOGRAPHY
• http://www.sarkaritel.com/state-bank-of-indias-csr-initiatives/
•https://www.onlinesbi.com/osbi_loyalty_pts_faq.html
•http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Skin=ETNEW&BaseHref=ETM%2F
•http://en.wikipedia.org/wiki/State_Bank_of_India
•http://exclusivecoins.blogspot.in/2011/06/23celebrating-two-hundred-years-of.html
•http://www.deal4loans.com/sbi-home-loan.php
•http://www.goodreturns.in/personal-finance/investment/2013/06/sbi-home-loans-3-reasons-opt-them-182830.htm
•http://www.goodreturns.in/personal-finance/planning/2013/03/comparison-the-cheapest-home-loan-rates-in-indi
•SBI_ANALYST_PRESENTATION_FY13 Report
•Retail Banking : Challenges Ahead in Distribution Channels in Urban/Rural India* - RBI Bulletin
•STATE BANK OF INDIA: BATTLING FOR SHARE (Case)
•http://www.it-director.com/business/content.php?cid=7081
•Customer segmentation in retail banking- Adkit Research
•http://www.sas.com/knowledge-exchange/customer-intelligence/author/davidwallace
•http://www.marketing91.com/swot-analysis-sbi/
•http://marketingpractice.blogspot.in/2007/04/brand-update-sbi.html
•Retail banking Strategies for the future – Mrs Soundara Kumar (SBI)
•http://economictimes.indiatimes.com/state-bank-of-india/shareholding/companyid-11984.cms
•http://conclave.intoday.in/conclave/includes/sponsors/sbi-2010.html
•Self Marketing – Breaking Dawn of SBI (case)