Defence Salary Package (DSP)/ Para Military

Service Package(PMSP): Expectations And

Suggestions For Improvement

For

STATE BANK OF INDIA

Presented by:Dering NabenRoll No-323Internship Branch: Local Head Office Guwahati

Company Profile

• Type - Public

•Industry - Banking, financial services

• Founded -1 July 1955

• Headquarters - Mumbai, Maharashtra, India

• Area served -Worldwide

• Key people - Pratip Chaudhuri(Chairman)

• Revenue as on 31st March 2013 - Rs.36,33,087 crores

• State Bank of India is India's largest bank with a network of over

13,000 branches and over 21,000 ATMs in India and has 188 Foreign

Offices in 34 countries.

Introduction

• On 29th May 2009, the State Bank of India (SBI) signed a Memorandum

of Understanding (MoU) with the Indian Army for offering customized

salary packages to army personnel across the country.

• Defence Salary Package (DSP)/ Para Military Service Package (PMSP)

is a customized salary package which offers many concessions in service

charges and in interest rates on loans for serving as well as retired

Defence personnel of Army/ Navy/Air Force as well as RR and GREF

(BRO) having their Salary/Pension accounts with SBI across the country.

Objectives Of The Study

• To know about the expectations and suggestions regarding the

Defence Salary package offered by SBI.

• To find out the attributes of the customers towards the Defence

Salary packages and its services offered by SBI.

• To know the customers opinion towards the Defence Salary

Package.

•Primary data:Primary data has been collected through personal interview using questionnaire by direct contact. Discussions with Defence Personnel’s and Bank staff in DSP special branches.

•Secondary data:The various sources that were used for the collection of secondary data are:- Database of SBI, Internal reports of the banks, internet, newspapers, etc

•Sample size:Samples of 110 customers of the Defence Personnel’s were chosen for the purpose of study.

•Sampling Method: Random Sampling MethodFrom the large number of Defence account holders in SBI, 110 customers were selected randomly from Defence Units for the study.

Data Collection Method

Findings

• Majority of the Armed Force surveyed i.e 93.6% out of 110 respondents are aware

about the Defence Salary Package/ Para Military Service package offered by SBI.

• Out of 110 respondents surveyed, 87.3% i.e 96 respondents have DSP/ PMSP under

SBI.

• Majority of the Defence Personnel i.e 79.09% are willing to recommend their friends

and relatives to open an account with SBI whereas 11.8% would recommend other

banks .

• 75.5% of the respondents are satisfied with the services provided by State Bank of

India.

• Nearly 80% of the Bank Staff have either good or very good knowledge regarding

the DSP/PMSP.

• 95.5% of the respondents involved in the survey were Sepoy’s, 3.6% were

Commissioned Officer of defence and 0.9% were Junior Commissioned Officer of the

Indian Armed force.

Suggestions

•The loan facilities are available only in the nearest place of posting, so irrespective of

the place of posting the loan should be allowed to be availed.

•In the Personal loan section there should be some reduction in the documentations.

•Concessions and reductions of the discounts on finely price products like Home,

vehicles, etc are not valid in all places especially in some rural areas.

•There is a lack of awareness on part of the operating functions like the bank staff and

accountants in the DSP special branches.

•It is often observed that the out of the two ATM cards , the one which comes in the

branch office usually come in the name of the Branch Manager and not in the name of the

applicant.

•Since the sepoys are not highly educated, most of them find it difficulty in availing the

2nd ATM card, the bank staff receives lots of complains in these regard.

•The loan discount in the Housing section should be increased from .50bps to 1 bps so as

to make a real difference because the present concession is making hardly any difference.

Limitations Of The Study

• The accuracy of the findings may not be perfect due to bias

response.

• The project is done on the assumption that the given data by the

respondents are true.

•Getting appointments to the higher officials of the Defence

Personnel was a problem.

Conclusion

• Most of the customers surveyed are aware of Defence Salary Package

offered by SBI.

• The sepoys are not much educated and so the bank should help the

customers to know about such products and schemes, which they are

less aware.

• Last but not the least SBI in its efforts to simplify and streamline the

salary disbursement procedure and to make available modern banking

facilities to its personnel was successful in reaching out to the defence

personnel’s across the county.

Thank You