EXECUTIVE SUMMARY
The origin of the State Bank of India returns to the main decade of the 90th century. It started with the
foundation of the bank of Calcutta on second June [Link] financial part is the area of the economy
dedicated to the holdings of money related to the resources of other people, contributing to those
budgetary resources as the influence to make more wealth and to regulate certain activities by government
organizations. A study about the impact of Non-performing of assets where the study is conducted in
State of India, at Rajajinagar Bangalore branch. Which has risen in its level of NPA over the years in the
report the reason for the increase is observed and measured to the control the NPA is given the suggestion
NPA play important role in profitability of bank which is very necessary for the bank to understand the
need and can control the level of NPA and also helps to know the needs to control it. This study will give
clear picture of NPA and discloses the needs objectives to study about [Link] is studied by using bar
diagram and certain test the hypothesis regression test is also used which helps to understand the degree
and relation between the profits and gross NPA along with the levels of profits which helps to understand
easily even for layman.
CHAPTER - 1 INTRODUCTION
Introduction about project
Project activity is an essential part of the academic curriculum of VTU MBA. It’s a resourceful
gap between understanding and it is application through various series of intervention with the
objective to give exposure to the corporate world and to get a practical experience project is
included in the academics. It was a useful 6-week project which had explored me to the banking
activities at State bank of India, Bengaluru. This project gave me the opportunity to serve and to
imposes the practical and theoretical concepts in a right way. This project helps to get to know
about the organisation and concepts with that this project was very beneficial as it helped to work
well is this competitive world. It provided the opportunity to learn and understand the banking
concepts and helped to adjust for work environment in future. Internship in state bank of India
form the date specified which was very useful and benefited to know about banking operations.
Topic for research study
“A study on non-performing assets at SBI, Bengaluru’’ conducted on state bank of India, WOC
Road branch, Bengaluru.
1.2 INDUSTRY PROFILE
A bank is budgetary establishment that provides saving money and monetary administration to
their customers. It’s a monetary intuition that takes money from people and provides credit. It
also performs Lending activities directly or indirectly through capital markets. Most of the
country have institutionalized a system know as fractionalreserve banking under which banks
keeps reserves equally to a portion of their current liabilities. It’s the most comprehended as a
foundation which gives basic savings money administrations, for example tolerating stores and
giving credits.
There are additional non-managing accounts in the organization that leads to a few money
administrations without accepting the legitimate of a bank. A bank is a sub set related to money
industry. The other view of the origin of the word bank is a German term “bank’’ that means a
joint stock finance. Then later the word tuned into the Italian word word “banco” were the
Germans became the ruler to a major side of Italy. The French people were also using the same
term as “bank”. Afterward, the Britishers turned this term into “Bank” later its universally
accepted. the banking system in India comprises indigenous banking that is unorganised sector
and also modern banking know as organized sector. The unorganized sector means Indigenous
bankers, Private money lenders, shroffs, centibars, etc. While organized sector includes
commercial banks, Development banks, regional Banks, co-operatives banks and so on. The
central bank of India is known as reserves bank of India and an apex body of banking companies.
With the rapid development of communication, transportation and industrialization, the banking
business has made a drastic progress in this modern era and its as became a part of our daily life.
The Indian banking sector is maintained by RBI act of 1934. The BANKING REGULATION
ACT 1949 by issuing direction to the maximum amount of deposits, the period and the rate of
interest they could offer on the deposits accepted. India reserve bank, provides different rules and
guidelines, polices and notifications on time to time to control the banking industries. Indian
banking system, as we see it today in India has come a long way. Its transitioned from
unorganized system of lending and borrowing, passing through establishment of private banks to
nationalized, to liberalization and now facing the globalization of the financial world. The
organized system is well developed that it can compete with its international counterparts in
terms of modern technology, financial products and services, infrastructure, efficiency and
professional.
There are additional non-managing accounts in the organization that leads to a few money
administrations without accepting the legitimate of a bank. A bank is a sub set related to money
industry. The other view of the origin of the word bank is a German term “bank’’ that means a
joint stock finance. Then later the word tuned into the Italian word word “banco” were the
Germans became the ruler to a major side of Italy. The French people were also using the same
term as “bank”. Afterward, the Britishers turned this term into “Bank” later its universally
accepted. the banking system in India comprises indigenous banking that is unorganised sector
and also modern banking know as organized sector. The unorganized sector means Indigenous
bankers, Private money lenders, shroffs, centibars, etc. While organized sector includes
commercial banks, Development banks, regional Banks, co-operatives banks and so on. The
central bank of India is known as reserves bank of India and an apex body of banking companies.
With the rapid development of communication, transportation and industrialization, the banking
business has made a drastic progress in this modern era and its as became a part of our daily life.
The Indian banking sector is maintained by RBI act of 1934. The BANKING REGULATION
ACT 1949 by issuing direction to the maximum amount of deposits, the period and the rate of
interest they could offer on the deposits accepted. India reserve bank, provides different rules and
guidelines, polices and notifications on time to time to control the banking industries. Indian
banking system, as we see it today in India has come a long way. Its transitioned from
unorganized system of lending and borrowing, passing through establishment of private banks to
nationalized, to liberalization and now facing the globalization of the financial world. The
organized system is well developed that it can compete with its international counterparts in
terms of modern technology, financial products and services, infrastructure, efficiency and
professional.
Structure of banking system in India
Banking system in India is totally headed by the RBI, India has no central bank before the
formation of RBI. The RBI is known as a supreme monetary and a banking authority in
regulating the banking segments in India. It’s also known as reserve bank has it handles all the
reserve of all the commercial banks. The banking segments of India is classified into 2 division
as shown in the below chart.
Chart No. 1.1 Banking segment in India
The Indian banking segments is generally divided into scheduled and unscheduled banks. All
banks include is the 2nd schedule to the Reserve bank of India act, 1934 are scheduled banks.
These banks comprise scheduled commercial banks and co-operative banks. scheduled co-
operative Banks and urban cooperative banks. Scheduled commercial Banks 6 in India are
categorised into 5 different groups according to their ownership and its operations:
State bank of India and its Associates
Nationalised Banks
Private Sector Banks
Foreign Banks
Regional rural banks.
Commercial banks might be characterized as, any financial association that manages the
deposits and credits of business associations. this bank provides bank checks and drafts, just as
acknowledge cash on term stores. banks likewise go about as moneylenders, by method for as of
late advances and overdrafts. Commercial banks additionally consider a different types of
deposits accounts, for example, checking, reserve funds, and time deposits. These banks are
ruined to make a benefit by gathering of people. As SBI is a commercial bank which serves for
the benefit of people and to their economy.
