A PROJECT REPORT

ON
“Study of Cash Management in SBI Bank (in Sagar)”

Submitted in partial fulfillment of the requirement for

the degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted to

MAHARAJA CHHATRASAL BUNDELKHAND UNIVERSITY, CHHATARPUR

Submitted by
Prince Jain
22N116X0030
4th Sem

Under the guidance of

Name of the Guide - Ms. Palak Jain
(Finance Faculty)

DEPARTMENT OF BUSINESS STUDIES

BABULAL TARABAI INSTITUTE OF RESEARCH& TECHNOLOGY, SAGAR

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 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to all those who have supported and
contributed to the successful completion of this project on "Cash Management of
SBI Bank in Sagar."

First and foremost, I am deeply indebted to my project guide, Ms. Palak Jain, whose
expertise, valuable guidance, and constant encouragement have been pivotal in
shaping this project. Their insights and feedback significantly enhanced the quality
of my work.

I am also grateful to the management and staff of SBI Bank in Sagar for their
cooperation and support. Special thanks to Mrs. Devagya Mukharjee (HOD ) for
providing me with the necessary data and insights into the bank's cash management
processes.

I extend my heartfelt thanks to BTIRT Sagar, guided by Ms, Palak Jain, for
providing the infrastructure and resources needed to conduct this study. Their
support has been instrumental in the successful completion of this project.

Signature of the Student

(PRNCE JAIN)

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 DEPARTMENT OF BUSINESS STUDIES
BABULAL TARABAI INSTITUTE OF RESEARCH AND TECHNOLOGY,
SAGAR (M.P)

CERTIFICATE

This is to certify that the “Study of Cash Management in SBI Bank (in Sagar)” Submitted by

Prince Jain ( 22N116X0030 ) to MAHARAJA CHHATRASAL BUNDELKHAND UNIVERSITY,

CHHATARPUR M.P. in partial fulfillment of the requirement for the Degree of Master of Business

Administration is a bonafide record of the project work carried out by him/her under my supervision

during the year 2023-24.

GUIDED BY HEAD OF DEPARTMENT PRINCIPAL

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 DECLARATION

I hereby declare that the project report titled "Cash Management of SBI Bank (in
Sagar)" submitted to BTIRT Sagar, is a record of original work carried out by me
under the guidance of Ms. Palak Jain This project report has not been submitted
earlier, either in part or whole, to any other university or institution for the award of
any degree, diploma, or other similar title.

The contents of this project report are based on the primary data collected from SBI
Bank in Sagar and secondary data obtained from various sources, which have been
duly acknowledged. All efforts have been made to ensure the accuracy and
completeness of the information provided in this report.

I take full responsibility for any errors or omissions that may have occurred and am
open to providing any further clarifications or corrections if required.

Signature:

Name: Prince Jain

Enrollment Number: 22N116X0030

Date: …………………..

Place : Sagar

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 EXECIUTIVE SUMMARY

Cash management is the process of managing an organization's cash flow to

ensure that there is always enough cash on hand to meet financial obligations.
Effective cash management involves monitoring and forecasting cash flows,
maximizing the use of available funds, and minimizing the costs associated with
maintaining cash reserves. Key components of cash management include cash
budgeting, cash flow analysis, and the use of various cash management tools
such as cash pooling, cash concentration, and electronic funds transfer. Effective
cash management can help organizations to optimize their cash flow, reduce
costs, and improve their overall financial performance.

In a business done financially affects cash eventually.

“Cash is to a business is what blood is to a living body.”

A business cannot operate without its life-blood cash, and without cash
management, there may remain no cash to operate. Cash movement in a
business is two-way traffic. It keeps on moving in and out of business. The
inflow and outflow of cash never coincides. Important aspect which is unique to
cash management is time dimension associated with the movement of cash. Due
to non-synchronicity of cash inflow and outflow, the inflow may be more than
the outflow or the outflow is more than the inflow at a particular point of time.
Left to shift cash flow is apart to follow monotonic pattern, and showers of cash
may be heavy, scanty or just normal. Hence there is a dire need to control its
movement through skilful cash management. The primary aim of cash
management is to ensure that there should be enough cash availability when the
needs arise, not too much, but never too little.

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 TABLE OF CONTENTS

Sr. No Particulars Page No

A Acknowledgement 02
B Certificates 03
C Declaration 04
D Executive Summary 05
1 Introduction of the Project 07-12
1.1 : Introduction, of the Study
1.2 : Objective of the Study
1.3 : Scope of the study
1.4 Limitations of the study
1.5 : Literature Review
2 Introduction To Industry 13-17
2.1 : Overview of Banking Industry
2.2 : Competitors
2.3 : Future Trends
3 Introduction of The Company 18-21
3.1 : Organization Profile- vision & Mission
3.2 : Description of Finance
4 Research Methodology 22
4.1 : Research Design
4.2 : Source Of Data
4.3 : Sample Design
5 Data Analysis & Interpretation
6 Conclusion 23-24
7 Learning Experience from the Project 25
8 Bibliography 26
9 Appendix 27

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 INTRODUCTIONOF THE PROJECT

1.1 INTRODUCTION OF THE TOPIC:

Cash management is a vital part of financial management for any organization,
as it involves managing cash flows to ensure that an organization has enough
cash on hand to meet its financial obligations. The process involves identifying
sources and uses of cash, monitoring and forecasting cash inflows and outflows,
and using various cash management techniques to maximize the use of available
funds.
Effective cash management can help organizations to maintain adequate
liquidity, reduce costs associated with managing cash, and improve their overall
financial performance. It involves balancing the need for cash reserves to meet
financial obligations and investment opportunities to earn returns on excess
cash.
Cash management is essential for all types of organizations, including small
businesses, non-profits, and large corporations. Without proper cash
management, organizations can face cash shortages, missed payments, and other
financial difficulties. Therefore, it is crucial to implement sound cash
management practices to ensure the financial stability and success of the
organization.
Cash management is a critical concept in financial management as it involves
managing the cash inflows and outflows of an organization to ensure that it has
enough cash on hand to meet its financial obligations. Effective cash
management ensures that an organization has enough liquidity to pay for its
day-to-day operations, invest in new projects, and meet unexpected expenses.
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The significance of cash management can be understood in the following ways:

1. Maintaining liquidity: Cash management ensures that an organization has

enough cash on hand to meet its financial obligations. Adequate liquidity
helps the organization to pay its suppliers, employees, and other creditors
on time and avoid any penalties or legal action.

2. Maximizing returns: Effective cash management involves investing

excess cash to earn returns. By investing in short-term securities, an
organization can earn a return on its idle cash reserves, thereby
maximizing its returns.

3. Reducing costs: Cash management involves minimizing the costs

associated with managing cash reserves. By consolidating bank accounts,
optimizing cash flows, and using electronic funds transfer, an
organization can reduce the costs of maintaining cash reserves.

4. Improving financial performance: Effective cash management helps to

improve an organization's overall financial performance. By maintaining
adequate liquidity and maximizing returns, an organization can improve
its profitability and financial stability.
The concept of cash management involves various techniques such as cash
budgeting, cash forecasting, and the use of various cash management tools.
Cash budgeting involves forecasting cash inflows and outflows to determine the
organization's cash requirements for a given period. Cash forecasting involves
predicting future cash inflows and outflows to identify potential cash shortfalls.
Various cash management tools such as cash pooling, cash concentration, and
electronic funds transfer can help to optimize cash flows and minimize the costs
associated with managing cash.

In summary, cash management is a crucial concept in financial management as

it ensures that an organization maintains adequate liquidity, maximizes returns,
minimizes costs, and improves its overall financial performance.

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1.2 OBJECTIVE OF THE STUDY:

Objectives of a project tell us why project has been taken under the study. It
helps us to know more about the topic that is being undertaken and helps us to
explore future prospects o f that organization. Basically it tells what all have
been studied while making the project.
1. To know about Cash Management of State Bank of India.
2. To analyze the Cash Management process of State Bank of India
3. To analyze in detail, the way Banks currently manage their finances and
make decisions to achieve trade off between profitability and liquidity.
4. To suggest methods for improving Cash Management in Banks.

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1.3 SCOPE OF TNE STUDY

Efficient cash management processes are per-requisites to execute payments,

collect receivables and manage liquidity. This study is done, taking
consideration of Bank of India. With reference to experience availed at branch.
The study of this topic will help to get the knowledge about cash management
policy of banks as particularly in co-operative sector. The mounting pressure
from competitors forces the Banks to look for an Information Technology
vendor who can offer better solutions and services in Cash Management and
Internet Banking.
Hence the study will lead to analysis of policies and procedure of managing
cash inflow and outflow, also this project focus on RBI norms and rules
regarding PCB s (Primary Co-operative Banks) cash management policies. This
will give brief view about entire structure of liquidity management of banks and
solutions offered.

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1.4 LIMITATIONS OF THE STUDY:

• Time period: The study's 8-week time period may not have been
sufficient to capture the complexities of closing a corporate deal, which
can often take much longer.

• Sampling bias: The study's results may not be completely accurate as they
were based on a sample taken from the population. The sample may not
be representative of the entire population, leading to sampling bias.
• Difficulty in accessing senior-level managers: Due to their busy schedules
and prior commitments, it was difficult to get time and access to senior-
level Finance/HR managers who were necessary to provide required
information for the study.
• Confidentiality concerns: Some managers may have been reluctant to
provide information due to concerns over confidentiality, which could
have resulted in incomplete or inaccurate data.

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 1.5 LITERATURE REVIEW:

Importance of Cash Management

 Liquidity Maintenance: Ensuring that adequate cash reserves are available

to meet daily operational requirements and unexpected large withdrawals
(Gitman & Zutter, 2015).
 Cost Reduction: Efficient cash management minimizes the cost of holding
and transferring cash, thereby increasing the bank's profitability (Brealey,
Myers, & Marcus, 2012).
 Risk Management: Effective cash management mitigates risks associated
with cash shortages and excesses, which can lead to insolvency or idle
resources (Ross, Westerfield, & Jaffe, 2013).

Cash Management Practices in Indian Banks

Indian banks, including SBI, have developed various strategies and tools to manage
cash efficiently.

Technological Integration

 Digital Banking: The implementation of internet banking, mobile banking,

and Automated Teller Machines (ATMs) has significantly improved cash
handling and reduced the dependency on physical cash (RBI, 2017).
 Electronic Fund Transfers: Systems like NEFT and RTGS facilitate swift
and secure cash transfers, enhancing liquidity management (Gandhi, 2018).

Regulatory Framework

 The Reserve Bank of India (RBI) provides guidelines for cash management
that ensure banks maintain adequate liquidity and adhere to safe practices
(RBI, 2019).
 Regulations also include requirements for maintaining certain cash reserves
and liquidity ratios, which help in managing cash efficiently and reducing risk
(Singh & Kaur, 2020).

Challenges and Solutions

 High Demand in Rural Areas: Rural branches in Sagar often face high cash
withdrawal demands. SBI addresses this by increasing the number of ATMs
and ensuring regular cash replenishment (SBI, 2021).
 Staff Training: Regular training programs for bank staff on cash
management practices ensure efficient handling of cash and adherence to
regulatory guidelines (SBI Training Manual, 2021).
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 CHAPTER 02: INTRODUCTION OF THE INDUSTRY

2.1 Overview of Banking Industry:

Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it
should be able to meet new challenges posed by the technology and any other
external and internal factors.
For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no
longer confined to only metropolitan or cosmopolitans in India. In fact, Indian
banking system has reached even to the remote corners of the country. This is
one of the main reasons for India's growth. The government's regular policy for
Indian bank since 1969 has paid rich dividends with the nationalization of 14
major private banks of India.
The first bank in India, though conservative, was established in 1786. From
1786 till today, the journey of Indian Banking System can be segregated into
three distinct phases. They are as mentioned below:

➢ Early phase from 1786 to 1969 of Indian Banks.

➢ Nationalization of Indian Banks and up to 1991 prior to Indian.
➢ Banking sector Reforms.
➢ New phase of Indian Banking System with the advent of Indian.
➢ Financial & Banking Sector Reforms after 1991.
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Phase I

The General Bank of India was set up in the year 1786. Next cameBank of
Hindustan and Bengal Bank. The East India Company established Bank of
Bengal (1809), Bank of Bombay(1840) and Bank of Madras (1843) as
independent units and called it Presidency Banks. These three banks were
amalgamated in 1920 and Imperial Bank of India was established which started
as private shareholders banks, mostly European shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians,
Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore.
Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda,
Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of
India came in 1935.
During the first phase the growth was very slow and banks also experienced
periodic failures between 1913 and 1948. There were approximately 1100banks,
mostly small. To streamline the functioning and activities of banks,mostly small.
To streamline the functioning and activities of commercial banks, the
Government of India came up with The Banking Companies Act, 1949which
was later changed to Banking Regulation Act 1949 as per amending Act of 1965
(Act No.23 of 1965). Reserve Bank of India was vested with extensive powers
for the supervision of banking in India as the Central Banking System.
During those day's public has lesser confidence in the banks. As an aftermath
deposit mobilization was slow. Abreast of it the savings bank facility provided
by the Postal department was comparatively safer. Moreover, funds were largely
given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after
independence. In 1955,it nationalized Imperial Bank of India with extensive
banking facilities on a large scale specially in rural and semi-urban areas. It
formed State Bank of India to act as the principal agent of RBI and to handle
banking transactions of the Union and state government all over the country.

14
Seven banks forming subsidiary of State Bank of India was nationalized in 1960
on 19th July 1969, major process of nationalization was carried out. It was the
effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major
commercial banks in the country were nationalized. Second phase of
nationalization Indian Banking Sector Reform was carried out in 1980 with
seven more banks. This step brought 80% of the banking segment in India under
Government ownership.

2.2 Competitors and other players in the field:

Top Performing Public Sector Banks:

• State Bank
• Punjab National
• Bank of Baroda
• Indian Overseas bank

Top Performing Private Sector Banks:

• HDFC Bank
• ICICI Bank
• AXIS Bank
• Kotak Mahindra Bank

3.3 Future Trends:

Business Operations Will Be Streamlined:

We have seen rapid technological developments in the past couple of decades in

the form of faster computers, smart phones, and faster Internet. This has led to
faster communications being made at considerably at lower costs. In the future,
this will be the key to making business operations more efficient and enabling
production with low error rates. Therefore, expect to see more and more
electronic communications being used on a daily basis to keep productivity high
and tighten cash flow budgets.

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Diversification of Businesses Will Be on the Rise:
Keeping in mind the current state of the economy, an increasing number of
companies will look to diversify into other fields and provide new product and
service lines. Old businesses may not be completely shut but may be revamped
to include new services and faster delivery times, all the while providing better
customer experiences. Emerging fields which cater to newer technologies will
flourish and expand faster.

Businesses Will Be More Mobile in Future:

There are already thousands of business applications available today for
businesses to use. These applications allow customers to perform different tasks
such as shopping, banking, paying bills, ordering groceries, booking tickets, etc.
In the future, more companies will move towards video advertising through
such business applications. Cash flow plans will be designed to incorporate a
businesses' move towards embracing the internet while helping increase
productivity and efficiency at reduced costs.

Availability of Business Credit to Remain Slow:

Despite the government insisting that banks loosen their purse strings for
businesses, credit lines will still continue to remain tight in the coming year.
Right now banks and credit companies are reluctant to lend to businesses.
Therefore companies need to learn to operate with less credit so that their cash
flow projection will include reduced expenses so as to operate on cash.

Companies Will Invest in Security Concerns:

As we employ a large number of smart devices in our daily business activities,
there will be a significant increase in the probability of confidential data being
breached. Existing merchant ecosystems and financial services are not well-
equipped to address such data security issues. Therefore, we will see an
increasing number of companies investing a considerable amount of money in
getting their systems more secure so that their corporate financial management
processes operate safely without any glitches.

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Businesses Will Opt for External Help:
Businesses will look to hire a number of external independent contractors rather
than hiring traditional in-house employees. This will help them reduce their
payroll tax and benefit costs while also receiving access to better-trained talent.
In the future, more qualified and talented pool of resources will look to work in
a flexible schedule environment. Cash flow plans will therefore also look to
incorporate outsourcing through external businesses instead of hiring in-house
teams.

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 CHAPTER 03: INTRODUCTIONOF THECOMPANY

3.1 ORGANIZATION PROFILE:

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 primarily
intent of imparting stability to
the money market, the bank
from its inception mobilized
funds for supporting both the
public credit of the
companies governments in the three presidencies of British India and the private
credit of the European and India merchants from about 1860s when the Indian
economy book a significant leap forward under the impulse of quickened world
communications and ingenious method of industrial and agricultural production
the Bank became intimately in valued in the enhancing of practically and
mining activity of the Sub-Continent Although large European and Indian
merchants and manufacturers were undoubtedly thee principal beneficiaries, the
small man 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 in 1935 carried out numerous Central - Banking functions.

Adaptation world and the needs of the hour has been one of the strengths of the
Bank, in the post depression exe. For instance - when business opportunities
become extremely restricted, rules laid down in the book of instructions were
relined to ensure that good business did not go post. Yet seldom did the bank
contravene its value as depart from sound banking principles to retain as expand
its business. An innovative array of office, unknown to the world then, was
devised in the form of branches, sub branches, treasury pay office, pay office,
sub pay office and out students to exploit the opportunities of an expanding
economy. New business strategy was also evaded way back in 1937 to render
the best banking service through prompt and courteous attention to customers.

18
A highly efficient and experienced management functioning in a well defined
organizational structure did not take long to place the bank an executed pedestal
in the areas of business, profitability, internal discipline and above all credibility
A impeccable financial status consistent maintenance of the lofty traditions if
banking an observation of a high standard of integrity in its operations helped
the bank gain a preeminent status. No wonders the administration for the bank
was universal as key functionaries of India successive finance minister of
independent India Resource Bank of governors and representatives of chamber
of commercial showered economics on it.
Modern day management techniques were also very much evident in the good
old day's years before corporate governance had become a puzzled the banks
bound functioned with a high degree of responsibility and concerns for the
shareholders. An unbroken record of profits and fairly high rate of profit and
fairly high rate of dividend all through ensured satisfaction, prudential
management and asset liability management not only protected the interests of
the Bank but also ensured that the obligations to customers are not met. The
traditions of the past continued to be upheld even to this day as the State Bank
years itself to meet the emerging challenges of the millennium.

MISSION STATEMENT:

To retain the Bank's significant as premiere Indian to Financial Service Group,

with world class standards and significant global committed to excellence in
customer, shareholder and employee satisfaction and to play a leading role in
expanding and diversifying financial service sector while containing emphasis
on its development banking 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.

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3.2: DESCRIPTION OF THE FINANCE PROCESSES:

CASH MANAGEMENT AT STATE BANK OF INDIA: Cash Management As

part of State Bank’s global transaction solutions to Corporate and Institutions,
We Provide Cash Management, Securities, Services and Trade Services through
our strong market networks in Asia. We are committed to providing you with;

➢ Integrated, superior cross-border and local services.

➢ Efficient transaction processing.
➢ Reliable financial information.
➢ Innovative products.
➢ World-class clearing services thus ensuring a full suite of transactional
products for your needs.

For Financial Institutions:

Standard Chartered is highly recognized as leading cash management supplier

across the emerging markets. Our Cash management services cover local and
cross border Payments, Collection, Information Management, Account Services
and Liquidity Management for both corporate and institutional customers. If
you are looking for a correspondent banking partner you can trust, Standard
Chartered can help you. We have more of than 500 offices located in
50countries throughout the world and, 150 years of on-the-ground experience,
we can help our bank clients with all their cash management needs.
Payment Services:

Global payments solution for efficient transaction processing looking to

outsource your payments to enable:

• Efficient processing of all your payables in the most cost effective

way.
• Straight through processing both at your end as well as your bank's
back-end.
• Efficient payable reconciliation with minimal effort and delay.

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 • Quick approval of payments from any location.
• Minimum hindrance to automation due to local language difficulties.
• Centralized management of payables across departments, subsidiaries
and countries.

Our solution State Bank’s Straight Through Services (STS) payments solution
can be tailored to the different payment needs of companies, whatever industry,
size or country you may be in. With comprehensive End-to-End payments
Processing Cycle, STS allows companies to process a variety of payment types,
whether they are domestic or international, local or central in different countries,
all in a single system file. To realize the benefits of STS, please contact your
local Relationship Manager or Cash Management representative. Our Coverage
we are the foreign bank having the largest geographical representation in the
country. We are the only bank which provides draft status to you on the website.

Collection Services:

Comprehensive receivables management solution State Bank understands that

operating and sustaining a profitable business these days is extremely tough. In
an environment of constant changes and uncertainties, most businesses face
challenges of costs and efficiency.

Key concerns include:

• Receivable Management- ensuring receivable are collected in an efficient

and timely manner to optimize utilization of funds

• Risk Management- ensuring effective management of debtors to

eliminate risk of returns and losses caused by defaulters and delayed
payments.
• Inventory Management- ensuring efficient and quick turnaround of
inventory to maximize returns.
• Cost Management- reducing interest costs through optimal utilization of
funds.

21
 CHAPTER 04:RESEARCH METHODOLOGY

4.1 : RESEARCH DESIGN:

Research is a systematic process of collecting and analyzing information (data)

in order to increase our understanding of the phenomenon about which we are
concerned or interested. A Research Design is the framework or plan for a study
which is used as a guide in collecting and analyzing the data collected. It is the
blue print that is followed in completing the study. The basic objective of
research cannot be attained without a proper research design. It specifies the
methods and procedures for acquiring the information needed to conduct the
research effectively. It is the overall operational pattern of the project that
stipulates what information needs to be collected, from which sources and by
what methods.

4.2 : SOURCES OF DATA:

Type of data collected

There are two types of data used. They are primary and secondary data. Primary
data is defined as data that is collected from original sources for a specific
purpose. Secondary data is data collected from indirect sources.
PRIMARY SOURCES:
These include the survey or questionnaire method, as well as the personal
interview methods of data collection.
Secondary sources:
These include books, the internet, company brochures, the company website,
competitor's websites etc, newspaper articles etc.
Sampling:
Refers to the about method of selecting a sample from a given universe with a
view to draw conclusions about that universe. A sample is a representative of
the universe selected for study. The sample size is 120

22
CHAPTER 06: CONCLUSIONOF THE STUDY

6.1 FINDINGS:

The study allowed us get answers regarding the service awareness among
people and the problems it faces. The key findings and analysis of the survey
showed the following:
• Based on the findings and analysis of the survey, it seems that the Straight
to Bank service is meeting the needs of customers who want to carry out
their banking needs conveniently. The fact that customers frequently call
the branch for even small issues shows that there is a high demand for
convenient banking solutions. The Straight to Bank service appears to
offer a solution to this demand by allowing customers to handle their
banking needs without having to physically visit a branch.
• Moreover, the survey results indicate that customers appreciate the ability
to handle their banking needs while sitting at their office. This suggests
that the Straight to Bank service is meeting a key requirement of
customers, which is the ability to perform banking transactions from any
location and at any time. This convenience factor is likely a major driver
of the service's potential usage.
• Overall, the survey findings suggest that the Straight to Bank service has
the potential to meet the needs of customers who are looking for
convenient banking solutions. However, it is important to continue to
monitor customer feedback and preferences to ensure that the service
continues to evolve and meet changing customer needs.

6.2 SUGGESTIONS:

• It seems that one of the key strategies for State Bank of India (SBI) to
compete with ICICI Bank and HDFC Bank is to focus on reducing costs
and offering competitive prices to customers. This can help attract price-
sensitive customers and retain existing ones who are looking for cost-
effective solutions.
• To reduce costs, SBI could consider streamlining its operations,
improving efficiency, and investing in technology that can automate

23
 processes and reduce manual intervention. This could help reduce the
overall cost of providing services and enable SBI to pass on the benefits
to customers in the form of lower fees and charges.
• In addition, SBI could also consider offering customized services that
cater to specific customer needs and preferences. This could include
offering premium services to customers who are willing to pay for them,
while also providing cost-effective solutions for customers who are
looking for basic banking services.
• Finally, to compete effectively with other banks, SBI should also focus on
providing competitive prices for its products and services. This can help
attract new customers and retain existing ones, especially in a highly
competitive market like India.
Overall, these suggestions can help SBI stay competitive and meet the evolving
needs of its customers, while also ensuring that it remains profitable and
sustainable in the long run.

6.3 CONCLUSION:
In conclusion, the study has identified the high demand for convenient banking
solutions among customers and the potential benefits of the Straight to Bank
service. While a majority of customers who were educated about the service
enrolled for it, the study has also highlighted the challenges faced by customers
in using the service due to issues with drop box placement and accessibility.
To overcome these challenges, State Bank of India needs to assess and improve
its drop box placement policies, enabling customers from all areas to use the
service conveniently. It is essential to provide customers with a hassle-free
experience by addressing their concerns and improving the service's
accessibility.
The study also emphasizes the importance of State Bank of India focusing on
cost reduction, customization, and competitiveness, to remain competitive in the
market and meet the changing needs of its customers. By prioritizing customer
feedback, addressing their concerns, and leveraging technology, State Bank can
establish itself as a leader in the banking industry and differentiate itself from
competitors.In conclusion, the Straight to Bank service has the potential to be a
valuable offering for State Bank of India, provided that it is implemented
effectively and with a focus on meeting customer needs. By addressing the
challenges and improving accessibility, State Bank can ensure that it is meeting
the needs of its customers and delivering value.

24
 CHAPTER 07: LEARNING EXPERIENCE FROM THE
PROJECT

LEARNING EXPERIENCE FROM THE PROJECT

Few of the respondents were aware about the service which was desired by
100%respondents clearly showing that there has been a falter in its promotion
and awareness strategies.

Customers were not aware that the service was a free one, this is clear that
almost all the attributes of the services are favourable to the customers still
customers are not using the service and are not even aware of it.

SBI should contact with their clients regularly for knowing the problems faced
by them. This will help SBI in providing best services to customers. This will
result in additional customer base by getting further references from satisfied
clients.

SBI should focus on getting the business other business clients other than its
existing customers as it would help them to increase their business opportunities.

25
 CHAPTER 08: BIBLIOGRAPHY

State Bank of India (Official Website) - https://sbi.co.in

SBI Cash Management Services (Official Website) -

https://www.sbi.co.in/portal/web/corporate-banking/cash-management-services

https://www.financialexpress.com/industry/sme/sbi-offers-unique-cash-
management-solutions-to-corporates/2195688/

https://www.thehindubusinessline.com/money-and-banking/sbi-extends-
benefits-of-digital-banking-to-cash-management-customers/article36266579.ece

https://www.businesstoday.in/sectors/banks/sbi-launches-e-forex-platform-sbi-
eforex/story/222204.html

https://www.livemint.com/industry/banking/sbi-icici-bank-hdfc-bank-offer-
cash-management-solution-to-corporates-11618115518111.html

https://www.livemint.com/industry/banking/sbi-rolls-out-new-cash-
management-tool-for-smes-11622615583252.html

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