CUSTOMER PROFILING

By:- Bhavesh Motiyani

Pavan Manghwani
HISTORY
The origin of the State Bank of India goes back to the
first decade of the nineteenth century with the
establishment of the Bank of Calcutta in Calcutta on 2
June, 1806.

Three years later the bank received its charter and
was re-designed as the Bank of Bengal (2 January, 1809).
A unique institution, it was the first joint stock Bank of
British.
Tolani Institute of Management Studies

India sponsored by the government of Bengal.
The Bank of Bombay (15 April, 1840)
and the Bank of Madras
(1 July, 1843)
followed the Bank of Bengal.
These three banks remained
at the Apex of modern banking
in India till their amalgamation
as the Imperial Bank of India
on 27 January, 1921.

Tolani Institute of Management Studies
KNOW YOUR CUSTOMERS
Tolani Institute of Management Studies
They had given us work to collect KYC documents from their 80 current account
holders. Because these document are necessary for bank to know about the
details of customer.
Information captured through KYC:-

Name
Address
Income Profile
Age
Occupation
Family size

The process of KYC helped a lot through the project to know the different
demographic profile of customer and establish relation between demographic
factor and the buying behaviour of consumers towards different products.


OBJECTIVES
To know the customer profiling through demographic
factors

To know the buying behavior of customer regarding
different products of bank

To know the profitability of different segments.

Tolani Institute of Management Studies
DATA COLLECTION METHOD
A data was collected through secondary data method and
the same was provided to us from the bank and the
information regarding demographic factors was
collected through primary data collection method.

Tolani Institute of Management Studies
SAMPLING DESIGN
A random sampling of 254 respondents was done,
among them 219 were of saving account and 35 were of
term deposit.

The information about their age, gender, income and
other products used by them are taken into consideration
for analysis of profitability.

Tolani Institute of Management Studies
ANALYSIS TECHNIQUE
SPSS 19 AND MS EXCEL is used to analysis the data
collected. Cross tabulation method used to know the
relation between gender-product, age-product, income-
product and cross tabulation is used to know the
classification of age, gender and income with that of
product used.

Tolani Institute of Management Studies
GENDER AND PRODUCT
FOR SAVING DEPOSITS
Tolani Institute of Management Studies
ANALYSIS
According to the data majority of males have
preferred taking insurance in comparison to females.

When it to opting for car loan males are also
preferring more than females such is the case in
other products like Car Loan, Home Loan, Net
banking.

While when it comes to opting for computer loan,
education loan, PPF or SIP the preference of female
is null.


Tolani Institute of Management Studies
CONCLUSION
As per our finding the customer base of state bank of
India in terms of education loan, computer loan, and
car loan is poor however they should focus on female
customer base in terms of their target customer
because when it comes to selling a car loan the ratio
of male to female is 10:1 so there is large untapped
market for the bank for selling the car loan.



Tolani Institute of Management Studies
Same is the case in terms of computer loan and
education loan, with rising rate of literacy there is an
large untapped market for both male as well as
female because the customer base for the both the
product is poor.

Similarly when it comes to selling the Systematic
Investment Plan same is the case for the product
there is a large untapped market for the product.



Contd.
Tolani Institute of Management Studies
INCOME AND PRODUCT
Tolani Institute of Management Studies
ANALYSIS
As per the observation, people with income
between 0-20000 prefer insurance, car loan, PPF &
net banking compared to other products.
While people in income bracket of 20001-40000
prefer taking car loan in comparison to the other
product.
People with income in the bracket of 40001-60000
prefer home loan in comparison to the other
product.
While people having income more than 60000 only
prefer taking home loan.


Tolani Institute of Management Studies
CONCLUSION
According to the analysis the customer for
insurance are more as compared to the other
products which contribute as major portion
towards profitability.
While customers in the age group of 60001-80000
are not purchasing any kind of product nor they are
investing in any other schemes which can be
considered as an untapped market for the bank.
The products like education loan, computer loan,
PPF have poor customer base so the bank need to
bring awareness and should more emphasis on
their marketing.


Tolani Institute of Management Studies
AGE AND PRODUCT
Tolani Institute of Management Studies
ANALYSIS
As per the research customer in the age group of 15-
25 prefer taking net banking and insurance compared
to other products.
While customers in the age group of 26-35 prefer
more taking insurance and also prefer taking home
loan, car loan and PPF.
Customers with more than 35 age prefer taking car
loan and home loan as major products.

Tolani Institute of Management Studies
CONCLUSION
According to the analysis customer in the age group
of 26-45 prefer taking home loan and car loan more
in comparison to the other products which
generates more profitability to the bank however
bank should also emphasize on the other age group
as well.

When it comes to selling for education loan,
computer loan, SIP the customer base of bank is
poor however these products dont contribute
more profitability.




Tolani Institute of Management Studies

Contd.

While in terms of net banking only customers in
the age group of 15-25 prefer taking it however
bank should also bring awareness about the same
in the other age group also.



Tolani Institute of Management Studies
GENDER AND PRODUCT
FOR TERM DEPOSIT

Tolani Institute of Management Studies
ANALYSIS

As per our observation most of the products like
insurance, car loan, home loan and SIP are generally
preferred by male customers.

Female only prefer to have insurance only.

Tolani Institute of Management Studies
CONCLUSION

According to the analysis the major part of the
profitability of the bank comes from insurance and
home loan because it is mostly preferred by all the
customers.

However when it comes to the customer base of other
products like car loan, home loan and SIP, the customer
base in terms of female is almost null

Bank should need to emphasize more on products like
car loan and SIP.

Tolani Institute of Management Studies
AGE AND PRODUCT
Tolani Institute of Management Studies
ANALYSIS

Customers in the age group of 36-45 mostly prefer
all types of product offered by bank.

While customers in the age group of 15-25 give
more preference to car loan and SIP.

When it comes to buying insurance it is mostly
preferred by customers belonging to the age group
of More than 55

Tolani Institute of Management Studies
CONCLUSION
According to the analysis the customer base of
insurance is strong in comparison to the other
products.

While the customer base of other products is less
which can add more towards profitability like
home loan, car loan and SIP.
Tolani Institute of Management Studies
INCOME AND PRODUCT
Tolani Institute of Management Studies
ANALYSIS

As per our observation customer with more
income prefer taking home loan in comparison to
the other products.

While customer in the lowest income group
prefer taking insurance more in comparison to
the other product and also prefer taking car loan.

When it comes to the purchasing of SIP
customers in the age group of 20001-40000
generally prefer it.

Tolani Institute of Management Studies
CONCLUSION
As per our analysis the customer base for car
loan and home loan are fair while there is
larger market for insurance.

Bank needs to emphasis more in terms of
product like loan and SIP because there is
larger potential for both the product in the
market.

Tolani Institute of Management Studies
LEARNING OUT COMES
Tolani Institute of Management Studies
During the tenure of our internship we came to know about the importance of
KYC in the banking industry as to keep updating the necessary details of customer.

During the KYC process one of our major learning was interactions with the top
management people of the corporates.

The perceptions of consumers towards different product of bank.

The products which contribute more towards the profitability of bank e.g. home
loan, insurance, car loan, education loan.

How profiling can be beneficial for the bank to know its target customer and
mould their marketing strategy.

Our biggest learning was to work as per the working hours of the bank.


SME Products
State Bank of India has been playing a vital role in the
development of small scale industries since 1956. The Bank
has developed a wide array of products to meet the changing
needs of the industry. It provides end -to -end solutions for
the financial needs of the industry. To service the specific
credit needs of small and medium enterprise (SME) the
Bank established the Small & Medium Enterprise business
unit in 2004.

Apart from the general working capital requirements (like
Cash credit, Bill Discounting limits, LC, BG etc) to meet the
day to day requirements and term loans to take care of
investment needs for acquiring fixed assets, Bank has an
array of products/schemes to cater to the enterprise specific
requirements of SME Units both in Manufacturing and
Trade and services sectors. Brief details of some of the
schemes are as under:

Tolani Institute of Management Studies
SME Loan Products
For Micro Enterprises and SSIs
SME Credit Card (Up to Rs.10 Lakh)
SME Smart Score (Up to Rs.50 Lakh)

For Startups
SBI SMILE (Interest Free Loan as equity)

Term Loans for SSIs
General Purpose Term Loan for SSI Sector (Up to Rs.50
Lakh)
Open Term Loan (Up to Rs.2.5 Cr)
Corporate Loan (Fro Rs.25 Lakh up to Rs.10 Cr)

Add Ons
SME Credit Plus
Standby Line of Credit for Working Capital

Food processing
Rice Mill Plus
Dal Mill Plus

Collateral Free Loan
SME Collateral Free Loan
For Traders
Traders Easy Loan
Flexi Loan for Trade and Services

For Doctors
Doctor Plus

For Schools & Institutes
School Plus

For Shop Owners
SBI Shoppe
SBI Shoppe Plus

For Restaurant owners
Finance to Restaurants

For Transport Operators
Transport Plus

For skill based businesses
Artisan Credit Card

For Vendors and Dealers: Supply Chain Finance

Electronic Vendor Finance Scheme
Electronic Dealer Finance Scheme

Loans to Women Entrepreneur
Stree Shakti Scheme


Miscellaneous
Rent Plus
SME Construction Equipment Loan
SME Car Loan

Tolani Institute of Management Studies
SME Liability and Transaction
Products
SBI Power

SAHAJ Current Account

Surabhi Deposit Account

B2B Payment Solution

Power Jyoti Current Account

Tolani Institute of Management Studies
For Micro Enterprises and SSIs
SME Credit Card (Up to Rs.10 Lakh)

Product provides loans for the micro enterprises including SSI units, small business
enterprises, professional and self employed persons, small retail traders, transport
operators etc for meeting any kind of credit requirement including purchase of
shops, maximum limit being Rs 10 lakhs including term loan & working capital
loan. The loan will be sanctioned for 3 years with an annual review. This product has
simplified sanction process without requirement of elaborate financial data.
The borrower will be provided a photo identity card and a passbook giving details of
the limit and validity of the facility. A cheque book marked as SME Credit Card and
a pass book would be issued to the customer.

SME Smart Score (Up to Rs.50 Lakh)

The Loan product is for units in Micro and Small Enterprise sector in manufacturing
trade and services segments to meet working capital needs and for acquisition of
fixed assets. A simplified appraisal model has been developed to standardize the
appraisal process for loans upto Rs 50 lakhs in SSI sector and upto Rs 25 lakhs for
trade and services sector available with attractive interest rates. The loan will be
sanctioned for 2 years with an annual review.
Tolani Institute of Management Studies
For Startups
SBI SMILE (Interest Free Loan as equity)

The scheme envisages grant of interest free loan as equity assistance
towards part of margin requirements of the project, to assist eligible
professional and technically qualified entrepreneurs setting up new
Micro and Small enterprises and units covered under the Banks
Project uptech for technology upgradation.

Equity assistance is up to a maximum of Rs.10 lakhs. Professional
and Technically qualified persons will cover doctors including
dentists, engineers, and management graduates etc. The interest free
loan is repayable in 3 years with a moratorium period of 5-7 years.

Tolani Institute of Management Studies
Term Loans
General Purpose Term Loan for SSI Sector (Up to Rs.50 Lakh)
This product is for existing borrowers for any general commercial purpose such as shoring up of Net Working
capital, substitution of high cost debt, R&D, ISO certification etc, subject to disbursement being made in line with
the specific purpose approved. Maximum loan available is Rs 50 lakhs repayable in maximum period of 5 years.

Open Term Loan (Up to Rs.2.5 Cr)
A pre-sanctioned term loan with limit upto Rs 2.5 crore for existing or new corporate or non-corporate customers in
manufacturing sector and upto Rs 1 crore for hotels, hospitals, educational institutions in service sector.
The scheme provides option of multiple disbursements for multiple purposes like expansion/modernization,
substitution of high cost debt, up-gradation of technology, energy conservation system, acquisition of software,
hardware, visits abroad for acquiring technology, finalizing deals, participation in fairs, market promotion etc.
The sanctioned limit is valid for 1 year. Margin requirement is 10%.
The borrower can utilize pre-approved sanction to plan capital expenditure and negotiate with suppliers of
machinery and finalize best possible contract.

Corporate Loan (Fro Rs.25 Lakh up to Rs.10 Cr)
The scheme provides term loan for all existing customers and established non customers (subject to takeover norms
of the Bank) in manufacturing sector for repayment of high cost debt, VRS scheme expenses, on going capital
expenditure such as replacement of parts of machineries, upgradation and renovation, shoring up of net working
capital, R&D expenses, acquisition of tools jigs etc.
Quantum of Finance is minimum Rs.25 lakhs and maximum Rs.10 crores for non Corporate and no cap for
Corporate borrowers. No Margins are required under the scheme.
A maximum of three corporate loans can be outstanding per borrower at any point of time.


Tolani Institute of Management Studies
Add Ons
SME Credit Plus
For existing and new borrowers this scheme provides a clean cash credit
facility to meet contingencies, sudden and unforeseen expenditures like
repairs, meeting bulk orders, tax payments, mismatch in cash flows etc.
Under the scheme 20% of aggregate WC or max Rs.25 lakhs fund based
limit can be availed. Margins are not required and interest rate will be same
as applicable to cash credit limit.
The facility is repayable in 2 months and can be availed for 12 times a year

Standby Line of Credit for Working Capital
For existing units including export units, an additional Working
Capital(Fund based & non Fund based) limit by way of cash credit, packing
credit and bills discounting against stock, receivables to meet contingencies
like bunching of orders, delay in shipment, sudden increase in raw material
prices, mismatch in cash flows.
Under this 15% of aggregate Working Capital or max Rs.5 crore can be
availed. Margins as applicable to original limit.
The facility is repayable in 2 months and can be availed any number of
times in a calendar year

Tolani Institute of Management Studies
Food Processing
Rice Mill Plus
Term loan for acquisition of machinery/factory building
for modernization/ expansion and working capital needs
of Rice Mills engaged in milling, sorting, grading and
polishing. No upper ceiling on loan amount.

Dal Mill Plus
Term loan for Dal mill owners for acquisition of
machinery, factory building, modernization and all
working capital needs.


Tolani Institute of Management Studies
Collateral Free Loans
SME Collateral Free Loan (SMECFL)
Collateral free loan for viable projects of micro and
small enterprises in manufacturing and service sector
with maximum guarantee cover up to Rs.1.00 crore
under CGTMSE guarantee scheme for working
capital & Term Loan (FB+NFB) facilities.

Tolani Institute of Management Studies
For Traders
Traders Easy Loan
Easy loan for specific business needs of traders, wholesalers and
professionals, self-employed, small business enterprises, agents engaged in
purchase and sale of food grains, commodities, cold storage units, having
collaterals like land, buildings and liquid securities.
Loan can be availed for normal day to day business requirements or for
purchase of equipments/ fixed assets. Loan is available upto Rs 5 crore with
very competitive rate of interest.

Flexi Loan for Trade and Services

Term Loans to well established whole sale and Retail Traders, distributors,
stockists, construction, transport & supply contractors, hospitals, nursing
homes, clinical labs, resorts, travel agents etc for any general purpose such
as holding of stocks, book debts, acquisition of land and building,
renovation of office/showroom, purchase of vehicles, equipment etc.
Repayable in 3-5 years but in deserving cases extendable up to 8 years.
Maximum loan Rs.1.00 crore.

Tolani Institute of Management Studies
For Doctors
Doctor Plus

Loans to Doctors for setting up clinics/ nursing
homes, Pathological Labs, drug stores,
ambulances, computers, vehicles including
expansion/ renovation of existing premises etc.
Available for all streams viz. Allopathy,
Homeopathy, Ayurvedic etc. Low Margins at 10-
15%, with loans up to Rs.5.00 crore. repayable in
7 years.

Tolani Institute of Management Studies
For Schools & Institutes
School Plus

Term Loans to educational institutions including primary
and higher secondary schools, graduation, under-graduation
and post-graduation colleges, technical institutes recognized
by AICTE/NBA/MCI available for purchase of land and
building, repairs/ renovation, furniture, equipment,
computers, vehicles, purchase of books/manuals/software
and other training material, sports equipments, equipment
for mid day meals scheme etc.
Margins 15%, concessions in interest rates, repayable in 7
years.

Tolani Institute of Management Studies
For Shop Owners
SBI Shoppe

Loans for present and prospective owners of shops/ offices/ show-rooms/
training centres/ service centres/ garages/ offices for Chartered Accountants/
Consultants for the purchase / repair/ renovation of new/ old shops/
establishments/ offices/ dealers showroom etc.
Maximum Term loan available is Rs 20 lakhs repayable in 3-7 years.

SBI Shoppe Plus

Loan to individuals/ proprietors/ partners etc with a steady source of income
and possessing necessary approvals for construction of their residential
house and for construction of office/shop, purchase of furniture, equipment,
etc.
Loan is given for purchase of residential houses and for office space as well.
The scheme is a combination of housing loan and SBI Shoppe for
professionals and self employed entrepreneurs.
Tolani Institute of Management Studies
For Restaurant owners
Finance to Restaurants
Loans to the Owners of Restaurants and Fast
food chains for purchase of kitchen
equipments, investment in interior
decoration, purchase of furniture and fixtures,
purchase of land and construction of buildings
etc.
The loans are repayable in maximum period of
7 years. Simple sanction process.

Tolani Institute of Management Studies
For Transport Operators
Transport Plus

Term loans for purchase of new transport vehicles at
cost on road basis and working capital facilities against
the receivables. Loans are available for surface
transport operators owning more than 10 well
maintained and road worthy vehicles including trucks,
tankers, tippers, luxury buses.
Margins 20% for term loans and working capital loans.
Concessions in interest rates are also available.

Tolani Institute of Management Studies
For skill based businesses
Artisan Credit Card

The scheme provides loans to Artisans to meet their credit
requirements both for investments as well as working capital in a
flexible manner at liberal rates of interest.
A photo Id card and a passbook will be issued and the limit is valid
for 3 years subject to annual review.
Beneficiaries registered with the Development Commissioner
(Handicrafts) will be eligible for insurance cover under group
guarantee scheme for which premium will be paid by the
government and the beneficiaries in the ratio of 60:40.
Maximum loan under the scheme is Rs. 2.00 Lakh
No collateral security is required. Loans will be covered under
CGTMSE scheme, the fees for the same will be reimbursement by
the Development Commissioner (Handicrafts, Ministry of Textile,
GOI)
Tolani Institute of Management Studies
Loans to Women Entrepreneur
Stree Shakti Scheme

For women entrepreneurs in Retail trade,
Business enterprises, Professionals and self
employed, small scale units or tiny units where
the women entrepreneurs stake is more than
51%, Term Loan & Working Capital facility is
available with concessionary margins and
interest rates.

Tolani Institute of Management Studies
Miscellaneous
Rent Plus
Loan is given for purchase of residential house and for office space as well.
The scheme is a combination of housing loan and SBI Shoppe for professionals and self
employed entrepreneurs. The loan is to meet the liquidity mismatches of the borrowers
business

SME Construction Equipment Loan
Term Loan for purchase of construction equipments viz. loaders, excavators, cranes etc., for
contractors and firms engaged in construction activity.
Loan is not available for purchasing old machinery/ vehicles.
Maximum loan available is upto Rs 25 crore with minimum margin applicable upto 15%.
Tenure of loan can be extended upto maximum of 4 years.

SME Car Loan
Loans for purchase of passenger cars, jeeps, multi utility vehicles etc., to the
promoter/partner/senior executives of the SME units having borrowing arrangements with the
Bank/ their family members either in their own name or the units name as per the choice of
the customer.
SME Current Account holders of the Bank or their family member either in their own name or
in the units name, and other SME clients subject to obtaining a NOC from the bank where
they might have a loan account, are also eligible.
MCG units of the Bank will also be eligible for the product.
Loans available for used cars also.
Tolani Institute of Management Studies
For Vendors and Dealers:
Supply Chain Finance
Supply Chain Financing is an online collaborative platform for the banks,
buyers and sellers for transactions and financing across the financial supply
chain.

Electronic Vendor Finance Scheme
The scheme provides for financing receivables of vendors of reputed Cor-
porates/ Industry majors (IMs). The scheme is a completely web based so-
lution with minimal branch intervention and provides instant credit to ven-
dors account electronically. This enables both the Industry Majors and their
vendors to achieve the objective of Just In Time production. The vendors
enjoy timely availability of funds.

Electronic Dealer Finance Scheme
The scheme provides for financing purchases of Dealers from
Corporates/Industry Majors (IMs). It is a completely web based solution
with customized MIS provided to the stakeholders. The Industry Major
enjoys timely availability of funds. The dealer can make effective utilization
on working capital funds. Both Industry Major and dealer can make use of
improved cash flow forecasting.


Tolani Institute of Management Studies
SBI Power

Value added Current account with eight variants with concessions in
cash transaction, remittances, collections and various other banking
needs, based on the Quarterly Average Balance (QAB) maintained by
our business customers.

POWERCURRENTACCOUNTVARIANTS
POWER PACK QAB Rs.5lacs
POWER PREMIUM QAB Rs.4lacs
POWER PRIVILEGE QAB Rs.3lacs
POWER ADVANTAGE QAB Rs.2lacs
POWER GAIN QAB Rs.1lacs
POWER SUPER QAB Rs.75,000
POWER LITE QAB Rs.40,000
POWER BASE QAB Rs.20,000

Tolani Institute of Management Studies
Sahaj and Surabhi
SAHAJ Current Account
A special Current account for entrepreneurs having
small means and who are otherwise not able to have an
account with the Bank. They can open account with us
with a Quarterly Average Balance of Rs.1,000/- only.

Surabhi deposit account
To cover that section of non-individual customers who
have surplus funds for investments, but at the same time
need the Convenience of liquidity. Accounts under
SURABHI Scheme are Savings Bank/Current Accounts
with auto sweep and reverse sweep facility.


Tolani Institute of Management Studies
B2B & Power Jyoti
B2B Payment Solution
A complete IT solution to Corporate needs. The
dealers/retailers can pool periodical remittances in the
pooling account of their service/commodity major with
customized MIS availability.

Power Jyoti Current Account
A one stop solution for Fee Collection of educational
institutions, recruitment agencies and other SME
customers. The highlight of the product is that the funds
could be transferred without the remitter having an
account in our bank. We have also customized Power
Jyoti for brokers.

Tolani Institute of Management Studies
THANKING

YOU
Tolani Institute of Management Studies