INTRODUCTION ABOUT INDIAN BANKING SYSTEM

Banking system occupies an important place in a nation's economy. In other words the development is an inevitable precondition for the healthy rapid development of national economic structure. Banking institutions have contributed much in the development of the developed countries of the world and hence a banking institution is indispensable in a modern society. It plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country. In a society banking is as important as blood in human body. Banks, as social organizations, have to go out to the people and assist weaker sections in achieving their aspirations; they are, thus, to act as catalytic agents for the development of the country. Mobilizing resources wherever these be a channeling them towards productive purposes. ew strategies have to be evolved for industrial development, both in the small!scale and large scale

sectors and rather than confiding to the traditional way of storage and distribution finance of a short term nature, developmental finance and term lending have to be taken up by commercial banks, similarly, opening of branches in rural and urban areas and efficient customer services have assumed great importance. "fter independence the Indian #overnment also has takes a series of steps to develop banking sector, because of considerable efforts of the government today we have number of banks in India. Indian banks contribute a lot in the development of agriculture, trade and industries. ORIGIN OF THE WORD BANK' $pinion is not uniform with regard to the origin of the word 'Bank' "ccording to some authors the word 'Bank's derived from the words' bancus' or 'ban%uet' that is abench. &he early bankers, the 'ews in Italy transacted their business on benches in the market place, when a banker failed, his 'bench's broken into pieces, by the people who indicated the bankruptcy of the individual banker. But this e(planation was turned out on the ground that the Italian moneychangers as such were never called bankers in the Middle "ges. )ome others say that the word* bank' original derived from the #erman word 'pack' meaning a +oint stock fund, which was Italianized into 'banco' when the #ermans when masters of a great part of Italy. "ccording to ,rofessor -amachandra -ao, .whatever be the origin of the word bank, it would trace the history of banking in /urope from the Middle ages. "ccording to ancient /uropean history, the Babylonians were the earlier people to develop a systematized banking system. It is said that temples of Babylon were used as banks and as such the temples of /phesus and 0elhi were famous great banking institutions. &he antireligious feelings, which developed afterwards, led to the collapse of public confidence in depositing money in temples and the priests ceased to perform the banking business. 1henever peace and solidarity were threatened, the spread of banking also was affected entirely. 2owever, after 2

the revival of civilization and with the development of social and economic instituting, money transactions also were revived. It was in the 34th century that some banks were established in 5enice and #enoa. &hese banks were simply relieving deposit and lending money to the people. In fact they were not banking of the modern type. &he origin of modern banking may be traced to money dealers in 6lorence who are received money in the 6lorence who received money in the form of deposits and lend it to business people. "t this time, 6lorence was the centre of money market in /urope. In /ngland, money changing became an important function of bankers during the reign of /dward III. Money changing refers to conversion of foreign coins into British money. &his function was performance by the -oyal /(changer on behalf of the #rown. DEFINITION OF BANKING: " banking company is defined as a company, which transacts the business of banking in India. &he Banking -egulation "ct defines the business as banking by stating the essential functions of a banker. It also states the various other businesses a banking company may be engaged in and prohibits certain business to be performed by it. 7nder /nglish common law, a banker is defined as a person who carries on the business of banking, which is specified as8

conducting current accounts for his customers paying che%ues drawn on him, and collecting che%ues for his customers.

&he term 'banking' is defined as 9accepting9, for the purpose of lending or investment, of deposits of money form the public, repayable on demand or otherwise, and withdrawal by che%ue draft, order or otherwise9. MEANING OF BANKING: &he banking activities in India are regulated by the Banking -egulations "ct, 3:;:. 7nder )ection <=b> of the said "ct .Banking? means, the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or this business in India is called a banking company. 2owever, any company which is engaged in the manufacturing of goods or carries on any trade and which accepts deposits of money from the public merely for the purpose of financing its business as manufacturer or trader shall not be deemed to transact the business of banking. It may be mentioned that the Banking -egulation "ct, 3:;: is not applicable to a primary agricultural society, a co!operative land mortgage bank and any other co!operative society e(cept in the manner and to the e(tent specified in ,art < of the "ct. HISTORY OF BANKING IN INDIA

1ithout a sound and effective banking system in India it cannot have a healthy economy. &he 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 e(ternal and internal factors.

6or the past three decades India's banking system has several outstanding achievements to its credit. &he most striking is its e(tensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. &his is one of the main reasons of India's growth process. 4

&he government's regular policy for Indian bank since 3:@: has paid rich dividends with the nationalization of 3; ma+or private banks of India.

&he first bank in India, though conservative, was established in 3AB@. 6rom 3AB@ till today, the +ourney of Indian Banking )ystem can be segregated into three distinct phases. &hey are as mentioned below8

/arly phase from 3AB@ to 3:@: of Indian Banks ationalization of Indian Banks and up to 3::3 prior to Indian banking sector -eforms. ew phase of Indian Banking )ystem with the advent of Indian 6inancial C Banking )ector -eforms after 3::3. Phas I &he #eneral Bank of India was set up in the year 3AB@. e(t came Bank of 2industan and Bengal Bank. &he /ast India Dompany established Bank of Bengal =3BE:>, Bank of Bombay =3B;E> and Bank of Madras =3B;F> as independent units and called it ,residency Banks. &hese three banks were amalgamated in 3:4E and Imperial Bank of India was established which started as private shareholders banks, mostly /uropeans shareholders. In 3B@< "llahabad Bank was established and first time e(clusively by Indians, ,un+ab ational Bank Gtd. was set up in 3B:; with head%uarters at Gahore. Between 3:E@ and 3:3F, Bank of India, Dentral Bank of India, Bank of Baroda, Danara Bank, Indian Bank, and Bank of Mysore were set up. -eserve Bank of India came in 3:F<. 0uring the first phase the growth was very slow and banks also e(perienced periodic failures between 3:3F and 3:;B. &here were appro(imately 33EE banks, mostly small. &o streamline the functioning and activities of commercial banks, the #overnment of India came up with &he Banking !

Dompanies "ct, 3:;: which was later changed to Banking -egulation "ct 3:;: as per amending "ct of 3:@< ="ct o. 4F of 3:@<>.

Phas II #overnment took ma+or steps in this Indian Banking )ector -eform after independence. In 3:<<, it nationalized Imperial Bank of India with e(tensive banking facilities on a large scale especially in rural and semi!urban areas. It formed )tate Bank of India to act as the principal agent of -BI and to handle banking transactions of the 7nion and )tate #overnments all over the country.

)even banks forming subsidiary of )tate Bank of India was nationalized in 3:@E on 3:th 'uly, 3:@:, ma+or process of nationalization was carried out. It was the effort of the then ,rime Minister of India, Mrs. Indira #andhi. 3; ma+or commercial banks in the country was nationalized. )econd phase of nationalization Indian Banking )ector -eform was carried out in 3:BE with seven more banks. &his step brought BEH of the banking segment in India under #overnment ownership.

&he following are the steps taken by the #overnment of India to -egulate Banking Institutions in the Dountry8

3:;:8 /nactment of Banking -egulation "ct. 3:<<8 ationalization of )tate Bank of India. 3:<:8 ationalization of )BI subsidiaries. 3:@38 Insurance cover e(tended to deposits. "

3:@:8 ationalization of 3; ma+or banks. 3:A38 Dreation of credit guarantee corporation. 3:A<8 Dreation of regional rural banks. 3:BE8 ationalization of seven banks with deposits over 4EE crore. "fter the nationalization of banks, the branches of the public sector bank India rose to appro(imately BEEH in deposits and advances took a huge +ump by 33,EEEH. Phas III &his phase has introduced many more products and facilities in the banking sector in its reforms measure. In 3::3, under the chairmanship of M arasimham, a committee was set up by his name which worked for the liberalization of banking practices. &he country is flooded with foreign banks and their "&M stations. /fforts are being put to give a satisfactory service to customers. ,hone banking and net banking is introduced. &he entire system became more convenient and swift. &ime is given more importance than money.

PRESENT BANKING SYSTEM IN INDIA In the economic development of a nation banks occupy an important place. Banking institutions from an important part of the money market and are indispensable in a modern developing society. In Indian money market comprise both organized as well as unorganized sectors. &he unorganized sector includes moneylenders and indigenous bankers and largely caters to the needs of persons living in villages and small towns. It is estimated that about one!third of the total credit re%uirements of the country are met by the unorganized sector. 6inancial institution in the organized sector has grown significantly in the last three decades. "mongst the institutions in the organized sector of the Indian money market commercial banks and co!operative banks have been in e(istence #

for a pretty long time. "n important development in the organized sector was the formation of regional -ural Banks =--Bs> in the seventies to cater to the financial needs of rural areas. Dommercial banks have also e(panded their activities in multifarious ways, i.e. geographical e(pansion, amount of credit, types of credit facilities and to different new types of customers. &hus %uantitatively as well as %ualitatively these banking institutions have increased their services tremendously in recent years. In the field of Industrial finance, &he Industrial 0evelopment Bank of India =I0BI> was established in the year 3:@; as the ape( bank whose responsibilities are to provide direct finance to big industrial pro+ect and provide refinancing facilities for the term loans granted by other financial institutions including commercial banks. &hree important national level institutions in this field are Industrial finance Dorporation of India =I6DI>, the Industrial credit and Investment Dorporation of India =IDIDI> and the Industrial -econstruction Dorporation of India =I-DI>. "t the state level there are )tate 6inance Dorporations =)acs> and )tate Industrial 0evelopment Dorporations =)I0Ds> which have been set up to meet the re%uirements of small and medium!scale industries in the respective states. "ll these banking institutions differ from the traditional commercial banks in a sense that they provide finance mostly for developmental purposes and are, therefore, called 9development banks9. &hese development banks have filled up the much!needed gape in the Indian banking system, i.e. that of industrial finance. In the last few years the contribution of development banks in the industrial growth of the country has been significant. /(port !import bank of India was setup on 'anuary 3 st 3:B4 mainly to cater to the need of foreign trade of the country. 0uring 3:BB two important financial institutions were established ational 2ousing Bank was set up 'uly 3:BB, as the ape( banking institution in the field of housing finance, 0iscount and finance of India Gtd., was stabilized to

deal in money market instruments in order to provide li%uidity in the money market. &he above mentioned banking institutions provide financial assistance to the various segments of the society. In addition to these institutions, there are certain other institutions, which provide investment finance to #overnment, semi! government and corporate securities. )uch institutions include two insurance institutions!Gife Insurance corporation of India =GID>, &he #eneral Insurance corporation of India =#ID> and the 7nit &rust of India =7&I>. &hese institutional investors mobilize the savings of the people and channelise them into desirable securities and, therefore, are called investing institutions. &wo other institutions have been set up in recent years to foster the growth of banking services and to facilitate the banking #uarantee corporation of India performs two Important functions of e(tending the insurance cover to the depositors in banks and protecting the interests banks by providing guarantees in respect of advances granted by them to small scale industries and the priority and neglected sectors of the economy. &he e(port credit #uarantee Dorporation =/D#D> TYPES OF BANK IN INDIA &here are mainly four types of Banks in India which are given below %1& C '()a* Ba'+ &he -eserve Bank of India is the central Bank that is fully owned by the #overnment. It is governed by a central board =headed by a #overnor> appointed by the Dentral #overnment. It issues guidelines for the functioning of all banks operating within the country. %2& P,-*./ S /(0) Ba'+s

a2 -2 /2

)tate Bank of India and its associate banks called the )tate Bank #roup 4E nationalized banks -egional rural banks mainly sponsored by public sector banks.

%3& P).3a( S /(0) Ba'+s a2 -2 /2 42 2 $ld generation private banks ew generation private banks 6oreign banks operating in India )cheduled co!operative banks on!scheduled banks %4& C0506 )a(.3 S /(0) &he co!operative sector is very much useful for rural people. &he co!operative banking sector is divided into the following categories. a2 -2 /2 )tate co!operative Banks Dentral co!operative banks ,rimary "griculture Dredit )ocieties %A& S(a( CO5O6 )a(.3 Ba'+s :5 &he state co!operative bank is a federation of central co!operative banks and acts as a watchdog of the co!operative banking structure in the state. Its funds are obtained from share capital from the -eserve Bank of India. &he state co! operative banks lend money to central co!operative banks and primary societies and not directly to farmers. &he principle one being the institution of provincial co!operative banks to serve as ape( banks in the hierarchy of the co!operative pyramid. &he state co! operative banks are formed by federating all districts Dentral Do!operative Bank in a

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particular state. &he state Do!operative bank is the ape( Do!operative sector in the state. %B& C '()a* C05O6 )a(.3 Ba'+s :5 &hese are the federations of primary credit societies in a district, and are of two types ! those having a membership of primary societies only and those having a membership of societies as well as individuals. &he funds of the bank consist of share capital, deposits, loan C overdrafts from state co!operative banks and +oint stocks. &hese banks finance member societies within the limits of the borrowing capacity of societies. &hey also conduct all the business of a +oin ! stock banks. %C& P).8a)9 C05O6 )a(.3 -a'+s :0): C) 4.( s0/. (. s :5 &he ,rimary co!operative credit society is an association of borrowers and non!borrowers residing in a particular locality. &he funds of the society are derived from the share capital C deposits of members and loans from central co! operative banks. &he borrowing power of the members as well as of the society is fi(ed. &he loans are given to members for the purpose of cattle, fodder, fertilizers, pesticides, implements, etc. Brief 2istory of 7rban Do!operative Banks in India &he term 7rban Do!operative Banks =7DBs>, though not formally defined, refers to primary co!operative banks located in urban and semi!urban areas. &hese banks, till 3::@, were allowed to lend money only for non!agricultural purposes. &his distinction does not hold today. &hese banks were traditionally centered on communities, localities work place groups. &hey essentially lent to small borrowers and businesses. &oday, their scope of operations has widened considerably.

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&he origins of the urban co!operative banking movement in India can be traced to the close of nineteenth century when, inspired by the success of the e(periments related to the co!operative movement in Britain and the co!operative credit movement in #ermany such societies were set up in India. Do!operative societies are based on the principles of cooperation, ! mutual help, democratic decision making and open membership. Do!operatives represented a new and alternative approach to organization as against proprietary firms, partnership firms and +oint stock companies which represent the dominant form of commercial organization. Th B ;.''.';s &he first known mutual aid society in India was probably the I"nyonya )ahakari Mandali* organized in the erstwhile princely )tate of Baroda in 3BB: under the guidance of 5ithal Ga(man also known as Bhausaheb Javthekar. 7rban co! operative credit societies, in their formative phase came to be organized on a community basis to meet the consumption oriented credit needs of their members. )alary earners* societies inculcating habits of thrift and self help played a significant role in popularizing the movement, especially amongst the middle class as well as organized labor. 6rom its origins then to today, the thrust of 7DBs, historically, has been to mobilize savings from the middle and low income urban groups and purvey credit to their members ! many of which belonged to weaker sections. &he enactment of Do!operative Dredit )ocieties "ct, 3:E;, however, gave the real impetus to the movement. &he first urban co!operative credit society was registered in Dan+eevaram =Jan+ivaram> in the erstwhile Madras province in $ctober, 3:E;. "mongst the prominent credit societies were the ,ioneer 7rban in Bombay = ovember 33, 3:E<>, the o.3 Military "ccounts Mutual 2elp Do! operative Dredit )ociety in ,oona ='anuary :, 3:E@>. Dosmos in ,oona ='anuary 3B, 3:E@>, #okak 7rban =6ebruary 3<, 3:E@> and Belgaum ,ioneer =6ebruary 4F, 12

3:E@> in the Belgaum district, the Janakavli!Math Do!operative Dredit )ociety and the 5aravade 1eavers* 7rban Dredit )ociety =March 3F, 3:E@> in the )outh -atnagiri =now )indhudurg> district. &he most prominent amongst the early credit societies was the Bombay 7rban Do!operative Dredit )ociety, sponsored by 5ithaldas &hackersey and Gallubhai )amaldas established on 'anuary 4F, 3:E@.. &he Do!operative Dredit )ocieties "ct, 3:E; was amended in 3:34, with a view to broad basing it to enable organization of non!credit societies. &he Maclagan Dommittee of 3:3< was appointed to review their performance and suggest measures for strengthening them. &he committee observed that such institutions were eminently suited to cater to the needs of the lower and middle income strata of society and would inculcate the principles of banking amongst the middle classes. &he committee also felt that the urban co!operative credit movement was more viable than agricultural credit societies. &he recommendations of the Dommittee went a long way in establishing the urban co!operative credit movement in its own right. In the present day conte(t, it is of interest to recall that during the banking crisis of 3:3F!3;, when no fewer than <A +oint stock banks collapsed, there was a there was a flight of deposits from +oint stock banks to co!operative urban banks. Maclagan Dommittee chronicled this event thus8 ."s a matter of fact, the crisis had a contrary effect, and in most provinces, there was a movement to withdraw deposits from non!co!operatives and place them in co!operative institutions, the distinction between two classes of security being well appreciated and a preference being given to the latter owing partly to the local character and publicity of co!operative institutions but mainly, we think, to the connection of #overnment with Do!operative movement?. U'4 ) S(a( P,)3. <

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&he constitutional reforms which led to the passing of the #overnment of India "ct in 3:3: transferred the sub+ect of .Dooperation? from #overnment of India to the ,rovincial #overnments. &he #overnment of Bombay passed the first )tate Do!operative )ocieties "ct in 3:4< .which not only gave the movement its size and shape but was a pace setter of co!operative activities and stressed the basic concept of thrift, self help and mutual aid.? $ther )tates followed. &his marked the beginning of the second phase in the history of Do!operative Dredit Institutions. &here was the general realization that urban banks have an important role to play in economic construction. &his was asserted by a host of committees. &he Indian Dentral Banking /n%uiry Dommittee =3:F3> felt that urban banks have a duty to help the small business and middle class people. &he Mehta!Bhansali Dommittee =3:F:>, recommended that those societies which had fulfilled the criteria of banking should be allowed to work as banks and recommended an "ssociation for these banks. &he Do!operative ,lanning Dommittee =3:;@> went on record to say that urban banks have been the best agencies for small people in whom 'oint stock banks are not generally interested. &he -ural Banking /n%uiry Dommittee =3:<E>, impressed by the low cost of establishment and operations recommended the establishment of such banks even in places smaller than taluka towns. &he first study of 7rban Do!operative Banks was taken up by -BI in the year 3:<B!<:. &he -eport published in 3:@3 acknowledged the widespread and financially sound framework of urban co!operative banks; emphasized the need to establish primary urban co!operative banks in new centers and suggested that )tate #overnments lend active support to their development. In 3:@F, 5arde Dommittee recommended that such banks should be organised at all 7rban Dentres with a population of 3 lakh or more and not by any single community or caste. &he committee introduced the concept of minimum capital re%uirement

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and the criteria of population for defining the urban centre where 7DBs were incorporated.

D,a*.(9 0= C0'()0* 2owever, concerns regarding the professionalism of urban co!operative banks gave rise to the view that they should be better regulated. Garge co!operative banks with paid!up share capital and reserves of -s.3 lakh were brought under the preview of the Banking -egulation "ct 3:;: with effect from 3st March, 3:@@ and within the ambit of the -eserve Bank*s supervision. &his marked the beginning of an era of duality of control over these banks. Banking related functions =viz. licensing, area of operations, interest rates etc.> were to be governed by -BI and registration, management, audit and li%uidation, etc. governed by )tate #overnments as per the provisions of respective )tate "cts. In 3:@B, 7DB) were e(tended the benefits of 0eposit Insurance. &owards the late 3:@Es there was much debate regarding the promotion of the small scale industries. 7DBs came to be seen as important players in this conte(t. &he 1orking #roup on Industrial 6inancing through Do!operative Banks, =3:@B known as 0amry #roup> attempted to broaden the scope of activities of urban co!operative banks by recommending that these banks should finance the small and cottage industries. &his was reiterated by the Banking Dommission =3:@:>. &he Madhavdas Dommittee =3:A:> evaluated the role played by urban co! operative banks in greater details and drew a roadmap for their future role recommending support from -BI and #overnment in the establishment of such banks in backward areas and prescribing viability standards.

1!

&he 2ate 1orking #roup =3:B3> desired better utilization of banks' surplus funds and that the percentage of the Dash -eserve -atio =D--> C the )tatutory Gi%uidity -atio =)G-> of these banks should be brought at par with commercial banks, in a phased manner. 1hile the Marathe Dommittee =3::4> redefined the viability norms and ushered in the era of liberalization, the Madhava -ao Dommittee =3:::> focused on consolidation, control of sickness, better professional standards in urban co!operative banks and sought to align the urban banking movement with commercial banks. " feature of the urban banking movement has been its heterogeneous character and its uneven geographical spread with most banks concentrated in the states of #u+arat, Jarnataka, Maharashtra, and &amil adu. 1hile most banks are unit banks without any branch network, some of the large banks have established their presence in many states when at their behest multi!state banking was allowed in 3:B<. )ome of these banks are also "uthorized 0ealers in 6oreign /(change. CHA>>ENGES FACING BANKING INDUSTRY IN INDIA

&he banking industry in India is undergoing a ma+or transformation due to changes in economic conditions and continuous deregulation. &hese multiple changes happening one after other has a ripple effect on a bank =-efer fig. 4.3> trying to graduate from completely regulated sellers market to completed deregulated customers market.

1"

12 D ) ;,*a(.0'8 &his continuous deregulation has made the Banking market e(tremely competitive with greater autonomy, operational fle(ibility, and decontrolled interest rate and liberalized norms for foreign e(change. &he deregulation of the industry coupled with decontrol in interest rates has led to entry of a number of players in the banking industry. "t the same time reduced corporate credit off take thanks to sluggish economy has resulted in large number of competitors battling for the same pie. 22 N < ),* s8 "s a result, the market place has been redefined with new rules of the game. Banks are transforming to universal banking, adding new channels with lucrative pricing and freebees to offer. specifically retail credit. 32 E==./. '/98 &his in turn has made it necessary to look for efficiencies in the business. Banks need to access low cost funds and simultaneously improve the efficiency. &he banks are facing pricing pressure, s%ueeze on spread and have to give thrust on retail assets. 42 D.==,s 4 C,s(08 ) *09a*(98 &his will definitely impact Dustomer preferences, as they are bound to react to the value added offerings. Dustomers have become demanding and the loyalties are diffused. &here are multiple choices; the wallet 1# atural fall out of this has led to a series of innovative product offerings catering to various customer segments,

share is reduced per bank with demand on fle(ibility and customization. #iven the relatively low switching costs; customer retention calls for customized service and hassle free, flawless service delivery. !2 M.sa*.;' 4 8.'4s (8 &hese changes are creating challenges, as employees are made to adapt to changing conditions. &here is resistance to change from employees and the )eller market mindset is yet to be changed coupled with 6ear of uncertainty and Dontrol orientation. "cceptance of technology is slowly creeping in but the utilization is not ma(imized. "2 C086 ( '/9 Ga68 ,lacing the right skill at the right place will determine success. &he competency gap needs to be addressed simultaneously otherwise there will be missed opportunities. &he focus of people will be on doing work but not providing solutions, on escalating problems rather than solving them and on disposing customers instead of using the opportunity to cross sell. S()a( ;./ 06(.0's <.(h -a'+s (0 /06 <.(h (h /ha** '; s Geading players in the industry have embarked on a series of strategic and tactical initiatives to sustain leadership. &he ma+or initiatives include8 Investing in state of the art technology as the back bone of to ensure reliable service delivery Geveraging the branch network and sales structure to mobilize low cost current and savings loans Implementing organization wide initiatives involving people, process and technology to reduce the fi(ed costs and the cost per transaction 6ocusing on fee based income to compensate for s%ueezed spread, =e.g. DM), trade services> Innovating ,roducts to capture customer Imind share* to begin with and later the wallet share 1$ deposits Making aggressive forays in the retail advances segment of home and personal

 Improving the asset %uality as per Basel II norms.

INTRODUCTION OF SAR?ODAYA SAHAKARI BANK >TD

HISTORY OF THE BANK

&he )arvodaya )ahakari Bank Gtd. established by Mr.5itthalbhai ,. "min, ,resident of #u+arat 7rban Do!$perative banks federation of that time. Mr."shabhai ,atel, ,resident of )urat 0istrict Do!$perative )angh, was the

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,resident of inauguration. Mr."runbhai 'ariwala, the ,resident of 6ederation of "rt 1earing Industries, was the special guest and blessing given by rev. armadnand+i Mahara+. Bank is registered according to the rules of the co!operative groups as note no. )/L<EA3 dated 4nd 6ebruary, 3:B4 and it is approved by the license no.)0L#'L4:B dated Frd may, 3:B4 from the bank of India. &he bank was founded on Bth may, 3:B4 with the authorized capital of -s.4<,EE,EEE and the paid capital of -s.;.3; Gacs. In the beginning there were BEF members. &he bank was started at 3E, )adhana )ociety, 5arachha -oad, )urat, the house of the ,resident of the bank of that time Mr.,rabubhai Makan+ibhai Bhakta. &he main intention of bank was to help financially to economically poor classes of the society, small merchants, small industries and labourers for their advancement. Moreover, it was also the reason of the bank to encourage the small savers to have the habit of to saving of money. In the begging, &he bank was given a limited working area of ward no.3< of ).M.D., 5arachha -oad from there difficult to make progress in the banking area in such a small work field. "lthough, by checking the chart of the bank history progress everyone is impressed by the slow yet steady of the bank. 6or the purpose of e(panding the service area of the bank, the bank has started its office at their own building with facility of centrally ".D. named .)2-// I02I? near 5arachha -oad )ubway on 3< th "pril, 3::3. )o that bank has got the customers of 5arachha -oad as well as ".J.-oad, )umul 0airy -oad, 5astadevdi -oad and )tation "rea. By taking into consideration the re%uirements of electronic banking system, the directors of the bank had started to think about the computerization of the bank in 3::3. In the year 3::4!:F with the help of directors of the bank and their

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knowledge, staff members and their great efforts it became first computerized bank of )urat. &he bank had started its first branch at Dentre ,oint Building, Jadiwala )chool, -ing -oad on 4Ath March, 3::A and on the same year on F rd 0ecember it had started second branch at 5ed -oad. "fter that the bank was continued it*s progress and strted its third branch on 4: th "ugust, 3::: at ,una Jumbhariya -oad, Magob and fourth on 4Frd ovember, 3::: at )argam )hopping Dentre, ,arle ,oint. &he "&M facility is available at Main Branch, -ing -oad Branch and ,arle ,oint Branch. &he 5"& machine and &ele Banking facility is available at all the branch. By taking into consideration the re%uirement of customers the bank has started the facility of )afe 0eposit 1alt. &he bank has started single window concept at all branch so that customers can make any transaction at any counter ie. deposit cash, withdraw cash, clearing. Dhe%ue, transfer, etc. &he bank has given facility of 0M"& =0ematerialization> account and it collect the light bill of the #/B. In the continuous progress of the bank Mr.,raffulchandra "mbalal )hah, ,resident and 0irector of the Bank from last 3B years, Mr.5ipinbhai )hah, "dviser and other staff members gives their valuable support.

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BOARD OF DIRECTORS

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POST CHAIRMAN

NAME M)2 Y0; sh/h'4)a @2 Pa).+h

?ICE CHAIRMAN M2 D2

M)2 @a9'(.*a* M2 F,4'a<a*a M)2 Ra8 sh/ha'4)a @2 R sha8<a*a

DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR

M)2 P)a==,*/ha'4)a A8-a*a* Shah D)2 Ka',-ha. G2 Ma<a'. D)2 Bha)a(-ha. N2 Shah M)2 Ma4h,s,4a' N2 Ka(a);a8<a*a M)2 Mah sh/ha'4)a R2 >a+h<a*a

DIRECTOR DIRECTOR DIRECTOR DIRECTOR AD?ISOR AD?ISOR

D)2 @a9'a- ' B2 Bha+(a M)2 Ka',-ha. H2 Shah M)2 RaA '4)a-ha. N2 Ch0+ha<a*a M)2 Na) sh-ha. 32 6a( * M)2 ?.6.'-ha. N2 Shah M)2 U(6a*-ha. C2 Ch0+sh.

BRANCHES
HEAD2OFFICE: )hri idhi, Jhand Bazar,

23

5arachha -oad, )urat!F:<EE@, ,h.8 4<<;F@<!@@!@A!@:!AE I& R.'; R0a4 B)a'/h % 2#(h Ma)/hB 111#& Denter ,oint Building, Beside Jadiwala )chool, -ing -oad, )urat ,hone8 ! 4;A4B3FL4;A4AB3LA;A4@:A=&ele banking> II& ? 4 R0a4 B)a'/h % 3)4 D / 8- )B 111#& -am+i Dhambers, -am+i )urat. ,hone8 ! 4<34AFFL4<3E4:F =&ele banking III& P,'a K,8-ha).a B)a'/h %21(h A,;,s(B 1111& .'. Domple(, 5illage!magob, )urat. ,hone8 !4@;F@4@L4@;F@EAL4@;F@F< =&ele banking> agar,

24

I?&

A(h<a*.' s B)a'/h %23)4 N03 8- )B 1111& M!4<, )argam )hopping Denter, ,arle ,oint, )urat. ,hone8 !44<;:<:L44<;:@EL44<;:@3=&ele Banking>

S0/.a* a'4 A/a4 8./ A/(.3.(. s 0= Ba'+

Bank gives donation to various institutes like school, colleges, hospital, trust, etc. the Bank complete their social responsibility by providing better service and helping them. FINANCIA> POSITION OF THE BANK : %RS2IN CRORE& SR NO 1 2 3 4 PARTICU>ARS )hare Dapital &otal deposit &otal loan ,rofit 277152717 FE.4F 4E3.:< 3E;.B; 4.AF 271752711 F4.:@ 44A.:F 344.AF 4.@@ 271152712 F;.AE 4<E.3E 3;;.E< @.@;

2!

ORGANICATION >IMITED

STRUCTURE

OF

SAR?ODYA

SAHAKARI

BANK

BOARD OF DIRECTORS

CHAIRMAN

MANAGING DIRECTOR

GENERAL MANAGER

BRANCH MANAGER 2"

OFFICERS

HEAD CLERKS

CLERKS

FACI>ITIES PRO?IDED BY THE BANK

C,)) '( A//0,'( &he main aim of current account is to put a smooth activity of business and to free the customer from the hazards =risks> of cash transactions and to supply facilities of payment to the customers. It*s also recognizing with the name .0emand 0eposits?. &his account is one type of running account in which the amount is deposited and there is no any limit to drawn money. ormally this account operated by business enterprises, trades, corporation, public bodies and trustees. &he customer, who have a current account may deposit money in the from of postal orders, drafts, che%ue, cash etc. &he banker supplies to the customer, upon opening an account, a passbook, a pay!in!slip book, and a che%ue book. In the current account customer has to maintain minimum balance of whatever bank is decided. If customer falls to maintain minimum balance, he has to pay charge. &his charge is different in different banks. &he bank does not provide any

2#

interest on the current account deposits. 0uring the banking hours, a customer is allowed to deposit or withdraw money. 5ery nominal charges are taken on current account for e(penses incurred in maintaining such account by the bank. Sa3.'; A//0,'( )aving "ccount means the bank with a view to encourage the people*s habit of saving. In saving account, bank accepts saving deposit from middle and low income group people, who wish to save a part of their earnings. &he people, who have fear of thrift, open the savings bank account. $ther people like students, salaries class, and small businessman also open this type of account. 1ith a very small amount of -s.33EE this account can be opened. &here are basically two types of saving account8 3> Dhe%ue )aving "ccount. 4> )aving "ccount &o open a )arvodaya Bank account person has to fill an application form provided by the bank does it. O3 )4)a=( $verdraft means customer can withdraw more amount than the amount credited in his account. &his type of advances given to the creditable customer for the purpose of business and good stock purchases for a small period of time. $verdraft is only given to current account holder against fi(ed deposit receipts, )D, J5,, share certificates, GID policy, government security and against assets. Bank may charges on such advances at the rate of interest. Th ) a) s08 8a'9 =a/.*.(. s 4)a<' -9 sa)304a9a saha+a). -a'+ *.8.( 4 =0) (h .) /,s(08 )s a'4 8 8- ) =a/.*.(. s *.+ :

2$

ATM %A,(08a(./ T ** ) Ma/h.' &: 5 &he Bank brought the automatic teller machine on 4: th march 3::@. &his is the first bank of )outh #u+arat providing high facility to the customer by automatic teller machine. By using the automatic teller machine customer can receive banking services round the clock 4; hours and whole year F@< days. "&M is also known with another name for business development is ."ny time money?. Dustomer get "&M card that have a Ch D, saving, customer cannot get "&M card. sa3.'; a//0,'( . In the simple

?AT %?.s,a* A//0,'( T )8.'a* Ma/h.' & : 5 5"& machine is important part of the bank because 5"& machine make smooth activity of the bank. 5"& machine perform good role when member has to need to know his account and statement at that time without any difficulty member can operate 5"& machine, with easily and we can know about his account and statement, without asking to bank employee. 1e can see the detail of che%ue and his own balance.

Cash C0,'(.'; Ma/h.' : 5 &he Dash counting machine count only money. 1ith the help of this counting machine one can count bundle of notes of -s.3EE and -s.<EE within +ust B to 3E second, so the customer don*t have to stand for too long time at the cash counter and it takes a less time and supported to fast working progress.

21

SWOT ANA>YSIS
&he full form of )1$& as under where8 .)? means strengths .1? means weaknesses .$? means opportunities .&? means threats &he brief studies )1$& analyses are as under below8 1& S() ';(hs Goan sectioned by )arvodaya bank more than varachha bank with reference to more time period and less interest rate.

37

)arvodya )ahakari bank is totally computerized bank. )o that satisfied man power is more because work done easily and speedy by the computer.

Bank is having considerable working capital. "ll the branches staff has %ualification and better e(perience. &he bank has good brand image. "ccording to -eserve Bank of I 0I" D-"- is Minimum :H. &he )arvodaya Bank obtained 3@.FFH capital ade%uacy ratio.

"s per employee profit of bank increase from 4.AF crore to @.@; crore. &here is no any loss has incurred by the ban from last 4E years that means profit of the bank is increase

"&M, 5"& and cash counting machine facility provided by the )arvodya )ahakari bank.

2& W a+' ss &he growth and performance of )arvodya )ahakari bank has been increasing years by year since FE!<!3:B4 and also the working of the bank is better. But there is one recommend that )arvodaya bank does not provide rebate on all types of loan compare to 5arachha Bank. 3& O660)(,'.(. s &he )arvodya )ahakari Bank can e(pand its service and facility like credit card and "&M for )urat locality through this facility more customers are attract toward bank .

31

&he bank has good market potential so that it can enhance or e(pand its business in future.

It can also establish other branches in the industrial area such as katargam, nana varachha, -ander, "da+an, etc.

4& Th) a(s Ba'+ has (0 =a/ : -ecession in business may affect repayment capacity of customer. If there will any union, it will cause problem for the bank. If there will opening of new bank with the facilities more than th"&, it will affect the progress of the bank )o more competition in present time. &hreat about the low speed of the recovery loans.

DAI>Y ACTI?ITY OF BANK DEPARTMENT C* a).'; D 6a)(8 '(

Dlearing means transfer the amount of che%ue from bank of which have in che%ue into account of party whose party name have been written in che%ue. In short clearing means transfer the amount of che%ue is not of a bank where the che%ue is submitted but. It is other bank*s che%ue.

32

1ith the help of department of clearing, work of business and industry become very easy. )o clearing department is essential part of the bank. Industries might have been weak economically without clearing. Dustomers can transfer amount easily with clearing department. Because it does not have to go one place to another place for that he has to fill up necessary detail in pay slip by attaching the che%ue. &here are two types of clearing8 12 O,(<a)4 C* a).'; &he work of clearing department is to first collect the fill up slip with attaching the che%ue. "fter it check fill up slip then clearing stamp is attempted on a che%ue. "fter that che%ues inde( number, bank code account number and amount of che%ue is installed in machine. &he timing of clearing department in the )arvodya bank is 33 a.m. to 4 p.m. before ; p.m. print out is taken out from the machine. "ccount holder write inde( number behind the che%ue and that number is written with a +oint che%ue on a credit voucher. &hrough done at this way it will help to do summary report as a bank wise, account number wise. &here are two copy taken out by machine one copy is sent to =MID-> clearing house and we have another copy of it. "fter all the che%ue has been send to =MID-> clearing house with a summary sheet of bank list. In the clearing house list of bank is send to each bank, which is the member in the clearing house, after it all che%ue are distributed to department of the name of the bank, this procedure is recognized with the name of .outward clearing .. In the outward clearing customer account are credited. 22 I'<a)4 C* a).'; &he inward clearing procedure is started after che%ue distributed to all the banks department. ,eon of the banks which banks are member in clearing house are return back to his bank with his bank che%ue from the clearing house. "fter it the 33

banker check the all the detail which written in the che%ue. If there is no any mistake in the che%ue it should be passed ahead, otherwise it returned. &his time that persons account should be debited and clearing house should credit amount of the banks. In inward clearing when che%ue comes in the bank, it can be shorted according to saving account, clearing account, order or bears dividend warrant and return che%ue etc. and after filling the all information of each che%ue in the machine, print out is taken on a computer. In short outward clearing means all the che%ue sends in clearing house and inward clearing means che%ue received from the clearing house which che%ue send to the out bank clearing though other bank. F.E 4 D 60s.( D 6a)(8 '(: 5 6ollowing are the interest rate of fi(ed deposit performed from E3LE;L4EE< 0ays 3. 4. F. ;. <. @. A. B. :. FE days to up to ;< days ;@ days to up to :E days :3 days to up to 3BE days 3B3 days to up to or below 3 year 3 year to up to or bellow 4 years 4 year to up to or bellow F years F year to up to < years More than < years -ate ;.<H <.<H @.<H A.<H :.EH :.<H 3E.EH :.EH

)arvodya 5ikas ,atra =0ouble> 8! -s. 3EE get*s in -s. 4EE.B4 for :; months 34

3E. 33.

)arvodya 5ikas ,atra =for senior citizen> double on B< months. #MI, )cheme =to get interest more than rs. 3EE on every months.> 6or general ! 3EH ! 33H

6or senior citizen

6or rs.3< lacks or more then that single deposit get more 3M4H for more then 3 year period.

6i(ed deposit means the bank accepts particular amount for a specified period of time it may be of 3, 4, F, ;, or < years. 2ere the words .time? in relation to deposit is determined by banker at the time of collecting the deposit after finished this determine time bank will has to repay the deposit with interest to customer. )o that fi(ed deposits are recognize with the name of .time? deposits or .term deposit?. In the fi(ed deposits customer cannot be allowed to withdrawn the amount before specified period of time and when he desires, so the banker also does not keep more cash reserve against it. If customer has to more need of money, he can take loan against fi(ed deposit for this he has to pay 3H interest more than interest rate on fi(ed deposit.

Minimum -s.3EEEEL! &hereafter In Multiplication $f -s.3EEEL!. Ma(imum ,eriod 7p &o < Nears 3H Gess $f "bove Interest -ate 1ithdrawable before maturity in parts in multiplication of -s. 3EEEL! as and when needed without charging penal interest. &o opening fi(ed deposit*s procedure8 ! 6irst of all, formal applications forms get from fi(ed deposit department then fill up this form with mention the total amount of money C the fi(ed time and you have to put your signature also. "fter it submit form to banker at fi(ed deposit 3!

department and against it bank gives you a receipt, in which the acceptance of deposits is indicated and the receipt also contains the information such as 0ate of maturity, on which date amount will be paid back with including interest by the bank. &he main purpose of banking company behind grant loan and advance is to develop the growth of the country and providing smooth service to business and commercial institutes. T0+ ' D 6a)(8 '( 1hen customer receives the amount of che%ue, it is very necessary to take token for him. &oken is one type of stamp. umber is written in token. Dashier does not do payment of money without token. 1hen customer gives che%ue on token window. Banker sees details of che%ue e(actly and assured that money received it means issued che%ue so he or another person. 2e takes che%ue after assured it and gives token to the customer. "fter that he writes the token on che%ue. "t the time of giving a token customer*s sign is done behind the che%ue. "fter that, che%ue is given for posting and token number, account number and the amount of che%ue is noted in the appropriate register. "fter putting the che%ue in scroll, it is sending in the cash payment and at the end of the day; all token are taken and put into the trunk. &hus, token is very essential for receiving the money.

Pass-00+ Banks gives passbook to customer after open his account. ,assbook means a copy of the account as per the account open in the banks ledger. #enerally passbook is very useful for the customer because by which he can know 3"

condition of his account through credit or debit entries in his passbook make by the bank. &he customer gets complete idea of his account form such passbook. ,assbook contain with many detail like Banks name, customer name "ddress, $ccupation, type of account and number of the ledger folio. Banks name, customer name, types of account and account number of customer is noted on the first page of the passbook. Ch D, .Dhe%ue is one types of bill of barter which is writing on decided banker and which is payable on the demand? ."ccording to lords chorlena, che%ue is writing document which by customer can pay money from bank account. &his type of document force to bank pay the money to other person from account of che%ue maker.? &he )arvodya bank totally depend on che%ue system many transaction done through che%ue like outward bill collection or inward bill collection. F a(,) s: 5 It must be written It must bear the signature of maker It must be unconditional It must be ordered, not re%uest &he payment order must be for a specific sum of the money It must be paid to specific person

3#

R /03 )9 a'4 Da9-00+ D 6a)(8 '( Da9-00+ 4 6a)(8 '(: 5 In the daybook department prepared the general ledger, profit and loss account of day to day transaction and at the last date of the month prepared the balance sheet of transaction make during a month. )o through this bank know how many cash comes in and goes out. &hrough general ledger, profit and loss account and balance sheet bank know their present condition and also know their capital ade%uacy and li%uidity ration. R /03 )9 4 6a)(8 '(: 5 6irst recovery department banker collects all the loan information like hypothecation loan, gold loan, housing loan, fi(ed deposit loan etc. the gives the different code number according to area wise. Banker can get the list at none payment loan amount at particular area by that code number. )o through this banker can do recovery work easily and speedy and avoiding the problem of go different plan. &he work of recovery department start when the customer payment date is over due then bank takes following action like8

Inform to party by letter Inform to party by telephone Bank gives the notice to borrower Donnect at home Make the threat of legal action If there is no any response from borrowers then bank claim in the court on borrowers.

"21 >ITERATURE RE?IEW

3$

 #lobalization

and

deregulations

have

increased

competition

in

the

marketplace, as now days it has become much easier for bank to cross borders and compete internationally. &he increased competition, on its behalf, has made organizations to constantly try to increase their productivity and decrease their costs. $ne way for them to achieve that is by investing in information technology. %F) 4 )./+s0'B 2773&

&he recent development of banking industry has led to ma+or changes in the way services are delivered to the customers. "ccording to the figures presented by the )tatistical Dentral Bureau =)DB> in )weden, during the first %uarter of 4EE<, <3H of the population aged between 3@ and A; has used banking services.

Banking services, including loan investment services, are becoming an attractive alternative to visiting service centers for increasing number of customers =2-!6ocus 4EEE; &racking 4EE3>. )ome of the reasons for customers to prefer banking loan services =as banking services> are8 convenience =Meuter, $strom, -oundtree C Bitner, 4EEE; )zymanski C 2ise, 4EEE>, feeling more in easiest of the service process =Bateson, 4EEE; 0abholkar, 3::@> and avoiding risk and saving money =0abholkar 3::@; Meuter et "l., 4EEE>. "s far as banking services are concerned, it is %uite easier for customers to evaluate and compare the benefits of competing services =)antos, 4EEF>. In addition, the costs are very low =-eichheld C )chefter, 4EEE>. In order for service providers to retain their customers, they should have better understanding of how customers perceive and evaluate 31

the %uality of the offered services. Businesses that have been e(perienced and successful in offering loan are starting to apprehend and low price, the important success or failure factors also include the banking loan service %uality =Nang, 4EE3; Oeithaml, 4EE4>. "lthough the literature on service %uality is abundant =,arasuraman, Berry C Oeithaml, 3::3; Dronin C &aylor, 3::4; Oeithaml, Berry C ,arasuraman, 3::@; Darman, 3::E>, very little research has been conducted on the evaluation of the %uality of loan services =Do( C0ale, 4EE3>. In addition, delivering high %uality services is a way companies manage to improve their customer relationships. 0elivering high %uality services is a prere%uisite for achieving customer satisfaction and only through customer satisfaction can the company gain loyal customers =#ringos, 4EEE>. Because of the highly undifferentiated products and services that financial

organizations, and specifically banks, offer, service %uality becomes main tool for competing in this marketplace =)tafford, 3::@; Jim, 2an, Dhoi C Jim, 3::B>. In general, because of the higher profits and higher customer retention to which they lead, high!%uality services are believed to provide banks with competitive edge in the marketplace %B '' (( F H.;;.'sB 11$$&2 6rom the mentioned above, it becomes obvious that high service %uality is essential for surviving in the highly competitive banking environment =1ang, Go C 2ui, 4EEF>. &his leads to the fact, that a good understanding of the attributes that customers use to +udge service %uality is necessary in order for

47

the company to be able to monitor and enhance its service performance and improve its overall service %uality. " lot of research has been conducted about key service %uality dimensions and customer re%uirements in the traditional banking environment, where personal interaction between the customers and the bank employees takes place %C0<*.'; F N <8a'B 111!G @0h's(0'B 111!G Bah.a F Na'( *B 2777G O66 <a* F ?). 'sB 2777&2

"22 THEORETICA> BACKGROUND OF >OAN M a'.'; 0= >0a'

Goan is a method of lending under which bank gives credit to a borrower for a fi(ed period and for a specific purpose. Goan are promises for future payment, they have to be repaid in periods beyond a year and are therefore long!term liabilities. In other words .when a banker makes a advance in a lump!sum which can not be paid wholly or partly and which the customer has permission to withdraw subse%uently, it is called a loan.? Many a time a borrower needs funds for fi(ed assets or non!respective type of activities and thus seeks money from the bank that is withdrawn in one lump sum. &he loan amount is normally repaid in installments. Goan may be shot!term, medium!term or long!term. Goans and advances are classified in to secured and unsecured.

41

S /,) 4 >0a' 0) A43a'/ : 5

)ecured loan or advance means a .Goan or "dvance made on the security of assets. &he market value of which is not at any time less than the amount of such loan or advances. U's /,) 4 >0a' 0) A43a'/ : 5

"n unsecured loan or advances means a .Goan or advance not so secured. " partly covered loan or advance is partly covered by the security of assets, the market value of such securities being less than the amount that has been lend or outstanding at any time.? >0a' P)0/ 4,) : 5 #enerally various banks adopt following procedure for loan. 12 S,-8.( (h A66*./a(.0': 5 6irst of all the loan borrower should submit application to the particular bank. &he borrower is re%uired to fill out a common application form, which seeks comprehensive information about proprietor*s and loan borrower*s back ground and his business network and as well as his cost of pro+ect and economic consideration. 22 A66)a.sa* 0= >0a': 5 &he bank follows good appraisal system for effective lending and to make easy repay in future way. &he main task of the lending bank is to make sure that the income generated from the loan is sufficient to repay the loan installments according to the terms and conditions of amortization. &he risk involved in term lending is much more than the risk in short!term lending because the loans are

42

given to new undertaking, or for the modernization and e(pansion of e(isting undertaking and for loan period. Before sanctioning any loan a banker should assure himself that the borrowing concern shall be able to earn sufficient income to pay the loan installments. &he methods of analysis and standard to be adopted for an appraisal of loan are more similar to investment decision than to short!term lending. &he appraisal of loan included pro+ection of future trends of output, sales estimated of costs, returns and flow of funds. It is e(tremely difficult to have a clever cut formula for the appraisal of term loan since many factors have to be considered such as the type of borrowing bank and its activities, the markets potential, its management, and financial position. &he amount of loan and the period of its repayment. "nother important factor is whether to give weight age to profitability or to its broad economic significance in the development of the economy. " term loan may be appraised by considering four different aspects of the proposal. &hey are8 a. b. c. d. 32 &echnical feasibility /conomic feasibility Managerial competence 6inancial feasibility D0/,8 '(a(.0': "fter completing the step of submit the application and appraisal system of loan. &hen loan applicant should collect the document for borrowing loan, every documents and re%uirement are needed according to the co!operative bank rate. If the loan applicant wants to borrow loan of huge amount, so at a time strong documents are presented by loan applicant against bank like evident of shareholders, original and photocopy of property*s documents, photocopy last three years income ta( returns file, etc. if loan applicants has no any recommendation from share holder so firstly the bank becoming share holders of 43

his bank by issuing share to them, so above types of documents are used to borrow loan and advances from the bank. 42 C0'3 ' (0 >0a' A66*./a(.0': 5 "fter collecting the necessary documents, an officer of the recipient bank review it to ascertain whether it is complete for processing, when the application is considered complete. &hen the co!operative bank held meeting of his loan applicant and sanctioned the particular loan. #enerally this meeting is convened on Monday and &hursdays in every week. $therwise e(pected it in other contingent situation and gives date, day and time for delaying particular meeting. !2 T0 Iss, D)a=( 0) Pa9 0)4 ): 5 "t the last stage is that, after convening of loan applicant and sanctioning loan, borrower should pay its stamp duty, margin and one installment of loan, then in the stamp document or stamp procedure. &hen bank gives to them pay order or draft. If the any loan borrowers want to purchase machinery or vehicle from out of city so he need %uotation of that particular company, and finally bank made draft of company*s name otherwise if the %uotation of city area so at a time the co! operative bank made pay order of company*s name. &hem it gives to company through loan applicant. &hus above procedure is followed by the loan applicant, who wants to borrow loan from banks and satisfied his goal or ob+ectives.

T96 s 0= >0a'
#enerally bank grant loans for different period like shorts, medium and long and for different purpose. Broadly, the loans granted by banks are classified follows.

44

Bank Goans

)hort! term Goans

%1&

Medium C Gong!term loan

Composite
Goans

Donsumption Goans

Sh0)(5( )8 >0a's: 5

)hort!term loans are granted to meet the working capital needs of the borrowers. &hese loans are granted against the securities of tangible assets mainly the movable assets like goods and commodities, share debenture, etc. %2& T )8 >0a's: 5

Medium and long!term loans are usually called term loans. &hese loans are granted for more than a year and are meant for purchase of capital assets for the establishment of new units and for e(pansion or diversification of an e(isting unit. )uch loans constitute a part of the pro+ect finance which industrial enterprises are re%uired to raise from different sources. &hese loans are usually secured by the tangible assets like land, building, plant and machinery, etc. %3& C0860s.( >0a's: 5

1hen a loan is granted both for buying capital assets and for working capital purpose, it is called a composite loan. )uch loans are usually granted to small borrowers, such as artisans, farmers, small industries, etc.

4!

%4&

C0's,86(.0' >0a's: 5

&hough normally banks provide loans for productive purpose only, but as an e(ception loans are also granted on a limited scale to meet the medical needs or the educational e(penses or e(penses relating to marriages and other social core monies etc. of the needy persons such loans are called consumption loans. B ' =.( 0= >0a': 5 12 T0 4 3 *06 B,s.' ss: 5 6or developing of business large capital is needed to take new technology adopt so as time machinery loan and other term loans are used to e(pand business activity. 22 F.'a'/.a* 4.s/.6*.' 0' (h -0))0< ): 5 "s the time repayment of the loan or its installment is fi(ed in advance, this system ensured a greater degree of self!discipline on the borrower as compared to the cash credit system. 32 P ).04./ ) 3. < 0= *0/a* A//0,'(: 5 1henever any loan is granted or its renewal is sanctioned the banker get an opportunity of automatically reviewing the loan account. 42 P)0=.(a-.*.(9: 5 &he system is comparatively simple; interest accrues to bank on the entire amount lent to customer.

4"

 12

D)a<-a/+ 0= >0a': 5 I'=* E.-.*.(9: 5 /very time a loan is re%uired, it is to be negotiated with the banker. &o avoid it, borrowers may borrow in e(cess of their e(act re%uirement to provide for any contingency.

22

A-,s 0= =,'4s: 5 Banks have not control over the use of funds borrowed by the customers. 2owever, banks insist on hypothecation of the assets purchased with loan amount.

32

I'4.s(.'/( 6 ).04: 5 &hough the loans are for fi(ed period but in practice roll over, i.e. they are renewed fre%uently.

42

C086* E.(9 =0) 40/,8 '(: 5 Goan documentation is more comprehensive as compared to each credit system.

?a).0,s >0a' S/h 8 s 0= Sa)304a9a Saha+a). Ba'+ >(42 %1&2 G0*4 >0a': 5 &he bank gives gold loan to customers or people on pledge of ornament of gold. 6irst decide the value of ornament by the help of goldsmith of bank. "nd bank grant the ;E to <EH loan on valuation of ornament of gold. #enerally this loan is given for two years and after two years customer will have to return this loan with 33H to 34H interest. &here are on any rebut provide by bank on gold loan.

4#

%2&2 P )s0'a* *0a': 5 ,ersonal loan advances granted to salaried employees against personal security called as personal loan. E*.;.-.*.(9 C).( ).a: P "ny salaried persons L ,rofessionals ! )elf /mployed L -etailers. P &he purpose considered are, social cause L small repairs of property L Dhild education etc. P Goan granted up!to < times of the net monthly income of the applicantLs $r -s.3lacs whichever is less. P Minimum two personal guarantees having income L asset e(pectable to the Bank. E== /(.3 Ra( 0= I'( ) s(: 3; H Q P)0/ ss.'; Cha); s: P) 56a98 '( Cha); s: il il

Sha) M0' 9 C0'().-,(.0': < H of the Goan )anctioned. T ',) F0) R 6a98 '(: Ma(imum up!to ;E months. H0< (0 a66*9 "n application in Bank*s ,rescribed 6orm duly filled up having been affi(ed with the ,hotographs of the applicantLs and guarantors along with their signatures to be supported by the papers L documents detailed as under. F0) (h A66*./a'(Hs

,hoto I.0. 4$

Income ,roof. -esidential "ddress ,roof. ,roof of Immovable ,roperty if owned by the applicant. Bank "Lc )tatement for the last si( months. )tatement of "Lc for Goan L "dvance facility availed from other Bank L 6.I. " letter of undertaking from the employer to deduct of /MI from salary in case of salaried person if agreed by their /mployers. %3&2 H960(h /a(.0' >0a': 5 &hese types of loan given for stock, machinery, vehicle and furniture. %a&2 A;a.'s( P*a'( F Ma/h.' )9: 5 Bank provides the hypothecation loan to buy new machinery for business development and also grant loan against old machinery. Bank grant loan up to A<H face value of bill of new machinery but bank does not pay this amount to borrower, bank make payment directly to supplier after getting necessary margin from borrower. Bank also grant loan for old machinery up to <EH of valuation for the professions purpose. %-&2 A;a.'s( S(0/+: 5 Bank provide hypothecation loan for short!term period to buy raw material for trade business. %/&2 A;a.'s( ? h./* F F,)'.(,) : 5 Bank grant hypothecation loan to purchase vehicle, &.5., refrigerator, furniture, domestic tools etc. Bank makes payment to directly to dealer.

41

E*.;.-.*.(9 /).( ).a: P "ny salaried persons L ,rofessionals ! )elf /mployed L Businessman. P $nly for the purpose of purchase of ew 5ehicle for personal usage. P Goan amount will depend upon the repaying capacity of the applicant and the worth of the personal guarantees offered. P F0) a66*./a(.0' ,'4 ) IJ,./+ D.s60sa* S/h 8 K: P Ma(imum Goan "mount for &wo 1heelers 5ehicle -s. <EEEEL! P Ma(imum Goan "mount for 6our 1heelers 5ehicle -s. <EEEEEL! P P )s0'a* G,a)a'( ha3.'; .'/08 H ass ( E6 /(a-* (0 (h Ba'+:

P 6or &wo 1heelers Goan ! "t least $ne ,erson. P 6or 6our 1heelers Goan ! "t least &wo ,ersons. P).8a)9 S /,).(9: 2ypothecation of 5ehicle. Ra( 0= I'( ) s(: 6or &wo 1heelers Goan8 3F H. L 6or 6our 1heelers Goan8 34 H. P)0/ ss.'; Cha); s: 6or &wo 1heelers Goan 8 -s. 3EEL! L 6or 6our 1heelers Goan 8 -s. <EEL! P) 56a98 '( Cha); s: il

Sha) M0' 9 C0'().-,(.0': 4.< H of the Goan )anctioned. T ',) F0) R 6a98 '(: 6or &wo 1heelers Goan8 Ma(imum up!to 4; months. L 6or 6our 1heelers Goan8 Ma(imum up!to ;B months. !7

H0< (0 a66*9 "n application in Bank*s ,rescribed 6orm duly filled up having been affi(ed with the ,hotographs of the applicantLs and guarantors along with their signatures to be supported by the papers L documents detailed as under. F0) (h A66*./a'(Hs

Income ,roof. Dopy of I.&. ,an Dard. Dopy of 0riving license =In 6orce>. -esidential "ddress ,roof. ,roof of -esidential ,roperty owned by the applicant L member of the family. Bank "Lc )tatement for the last si( months. )tatement of "Lc for Goan L "dvance facility availed from other Bank L 6.I F.E 4 D 60s.( >0a': 5 " banker may give advance to the depositor on the security at .6i(ed 0eposit? receipt. Bank grant <E to BEH face value of loan fi(ed deposit receipt. &his type of loan bank generally grants against )DLJ5,, government security, share, and GID policy. In this facility, bank charge 3H more than the fi(ed deposit rate from the borrower. In the case of third party bank also charge 3FH, which is ever higher, or FHmore than the fi(ed deposit rate. &here is no any rebate on fi(ed deposit loan. %!&2 Cash /) 4.( H O3 ) 4)a=(: 5 Cash /) 4.(: 5

4)

!1

&his type of loan provide to creditable customer by the bank in the form at certain limit against stock, property personal guarantee, stock and book debts for business purpose. E*.;.-.*.(9 C).( ).a: P 6or the purpose of Business. P Ma(imum credit facility R 4E H of the "nnual )ales &urnover. =$wn contribution R < H of the D.D. Gimit sanctioned is re%uired>. P "mount of Dredit 6acility will depend upon the nature of business of the applicant, offering of collateral security and the worth of the personal guarantees. P )s0'a* G,a)a'( to the Bank. P).8a)9 S /,).(9: 2ypothecation of )tock C Book debts =i.e. not more than @E days.> C0**a( )a* S /,).(9: ot re%uired for Gimit below -s. 4.EE lacs. : of at least two persons having income L asset e(pectable

D)a<.'; P0< ): @< H of the ,aid stock ,lus Book debts for not more than @E days on submission of the stock S book debt statements every month =i.e. 0.,. will not e(ceed the sanction limit>. Ra( 0= I'( ) s(: 33.<E H Q. P)0/ ss.'; Cha); s: "t the prevailing rates of the Bank from time to time. P) 5Pa98 '( Cha); s: il

Sha) M0' 9 C0'().-,(.0': 4.< H of the Gimit )anctioned. R ' <a*: Gimit re%uired to be renewed every year.

!2

T ',) F0) R 6a98 '(: &his limit will be reduced R 4E H every year at the time of renewal and re%uired to be satisfied in full on or before < years. H0< (0 a66*9 "n application in Bank*s ,rescribed 6orm duly filled up having been affi(ed with the ,hotographs of the applicantLs and guarantors along with their signatures to be supported by the papers L documents detailed as under. F0) (h A66*./a'(Hs

Income ,roof. ,roof regarding -egistrations of the business. ,roof regarding place of business. Dopy of I.&. ,an Dard of the applicantLs. -esidential "ddress ,roof of the applicantLs. DM" data for limit applied more than -s. <.EE lacs. ,resent Bank "Lc )tatement for the last si( months. )tatement of "Lc for Goan L "dvance facility availed from other Bank L 6.I. %"&2 P)06 )(9 80)(;a; *0a': 5 &he bank provides property mortgage loan for the development or e(pansion of the business. E*.;.-.*.(9 C).( ).a: P 6or the purpose of Business P Goan ma(imum up to <E H 5aluation of the property by the Bank*s approved value. P ,roperty offered for mortgage re%uires &itles Dlearance certificate from Bank*s approved advocate =&his re%uires before disbursement of loan>.

!3

P Goan amount will depend upon the repaying capacity and nature of business of the applicant and the worth of the personal guarantees offered. P )s0'a* G,a)a'( to the Bank. P).8a)9 S /,).(9: Mortgage of the ,roperty offered. Ra( 0= I'( ) s(: 3F H Q. P)0/ ss.'; Cha); s: "t the prevailing rates of the Bank from time to time. P) 5Pa98 '( Cha); s: il : of at least two persons having income L asset e(pectable

Sha) M0' 9 C0'().-,(.0': 4.< H of the Goan )anctioned. T ',) F0) R 6a98 '(: Ma(imum @E Months. H0< (0 a66*9 "n application in Bank*s ,rescribed 6orm duly filled up having been affi(ed with the ,hotographs of the applicantLs and guarantors along with their signatures to be supported by the papers L documents detailed as under. F0) (h A66*./a'(Hs

Income ,roof. ,roof regarding -egistrations of the business. ,roof regarding place of business. Dopy of I.&. ,an card of the applicantLs. -esidential "ddress ,roof of the applicantLs. $riginal &itle deeds of the ,roperty to be mortgaged at the time of mortgage. Bank "Lc )tatement for the last si( months. )tatement of "Lc for Goan L "dvance facility availed from other Bank L 6.I. !4

%#&2 Cash P,)/has C,8 C) 4.( Sa* s: 5 &his loan is given in the form of cash credit. &he cash purchase cum credit sale arrangement by which banker allows his customer to borrow money up to a certain limit against their bond of credit by one or more sureties or against security. &he bank charge on such advance at the rate of 3FH =for up to @Edays>. a2 T E(.* U6;)a4a(.0' F,'4 S/h 8 LTUFSM: 5 Indian government has issued te(tile 7pgradation fund scheme from 3!;!3::: for te(tile industry. 7nder this pro+ect government has distributed subsidy of -s.4<E million. &his type of the loan is given for purchase new or secondary te(tile machinery, bank grant loan up to BEH face value of bill of te(tile machinery. In this scheme borrows get subsidy decided by the government. $n such loan bank may charge at the rate of 3F.<EH interests. -2 H0,s.'; >0a': 5 &his loan provide for construction, additions, alteration, repair of the house etc. E*.;.-.*.(9 C).( ).a: P "ny person having sufficient repaying capacity P 6or the purpose of ,urchase $- Donstruct a 2ouse ,roperty for residence within the 0istrict S )urat. P Goan ma(imum up to B< H of the ,urchase Dost as per )ale "greement $Dost of Donstruction as per Donstruction "greement in case new Donstruction $- 5aluation by the approved valuer of the Bank whichever is less. P Goan amount will depend upon the repaying capacity of the applicant and the worth of the personal guarantees offered. P )s0'a* G,a)a'( to the Bank. : of at least two persons having income L asset e(pectable

!!

P).8a)9 S /,).(9: Mortgage of the 2ouse ,roperty. Ra( 0= I'( ) s( F*0a(.'; S/h 8 : 3E H. =)hall be changed if re%uired by the bank after a ,eriod of 4 years> Ra( 0= I'( ) s( F.E 4 S/h 8 : 33 H. I'( ) s( S/h 8 0'/ s * /( 4 a( (h (.8 0= 4.s-,)s 8 '( /a'N( -

/ha'; 4 a=( )<a)4s2 P)0/ ss.'; Cha); s: Minimum -s. 4<EL! $r E.<E H of the )anctioned "mount out of which -s.4<EL! to be deposited at the time of submission of the loan application. P) 5Pa98 '( Cha); s: il

Sha) M0' 9 C0'().-,(.0': 4.< H of the Goan )anctioned. T ',) F0) R 6a98 '(: Ma(imum 3BE Months, depending upon the age of the applicantL co!applicants. H0< (0 a66*9 "n application in Bank*s ,rescribed 6orm duly filled up having been affi(ed with the ,hotographs of the applicantLs and guarantors along with their signatures to be supported by the papers L documents detailed as under. F0) (h A66*./a'(Hs

Income ,roof. Dopy of I.&. ,an Dard. ,resent -esidential "ddress ,roof. Dopy of )ale "greement in case of purchase of house property.

!"

I' /as 0= /0's(),/(.0'

" copy of Donstruction agreement. " copy of sale!deed of the land. " copy of approved plan along with the permission granted by ).M.D. Bank "Lc )tatement for the last si( months. )tatement of "Lc for Goan L "dvance facility availed from other Bank L 6.I.

"23 OB@ECTI?E OF THE STUDY

P).8a)9 0-A /(.3 &he ob+ective of this research is to analyze the loans with a view to arrive at the most popular loan schemes offered by the banks in keep the bank ahead of competition. &he reasons being the features that the scheme provides are not being provided by many of the finance companies. S /0'4a)9 0-A /(.3 &o know the both banks provides different types of loan and their interest rate. &o know customerIs point of view about bank loan. &o get knowledge about different types of retail loans and their procedures are available in market. &o know that which bank provide batter loan schemes. &o know the consumer perception about the loan of )"-5$0"N" bank and 5"-"D22" bank ational capital -egion under study and to conclude from the analysis the best possible schemes which

!#

#enerating good business to the company by promoting and selling the products of )arvodaya sahakari bank. &o know various parameters that play ma+or role in the approval or re+ection of loan applications.

&o know the advantages and drawbacks in the loan products provided by Bank.

"24

HYPOTHESIS

1& H7 : N,** H960(h s.s &here is no significant relationship between types of loan taken by customer and income class. H1 : A*( )'a(.3 H960(h s.s &here is a relationship between types of loan taken by customer and income class. 2&2 H7 : N,** H960(h s.s &here is no significance relationship between amount of loan taken by customer and income class. H1 : A*( )'a(.3 H960(h s.s &here is a relationship between amount of loan taken by customer and income class. 3&2 H7 : N,** H960(h s.s

!$

&here is no significant relationship between types of loan taken by customer and occupation of them. H1 : A*( )'a(.3 H960(h s.s &here is a relationship between types of loan taken by customer and occupation of them.

4&2 H7 : N,** H960(h s.s &here is no significance relationship between types of loan taken by customer and age of them. H1 : A*( )'a(.3 H960(h s.s &here is a relationship between types of loan taken by customer and age of them.

!1

RESEARCH METHODO>OGY
#21 RESEARCH DESIGN &his pro+ect is based on e(ploratory study as well descriptive s t u d y. I t w a s a n e(ploratory study when the customer satisfaction level was studied to suggest new methods to improve the services of sarvodaya bank in providing banks. #22 SOURCE OF DATA: &o fulfill the information need of the study. &he data is collected from primary as well as secondary sources. A5 PRIMARY SOURCE:5 I decided primary data collection method because our study nature does not permit to apply observational method. In survey approach we had selected a %uestionnaire method for taking a customer view b e c a u s e i t i s f e a s i b l e f r o m t h e p o i n t o f v i e w "7 loans and it was descriptive study when detailed study was made for comparison of disbursement of loans by both co!operative

o f o u r s u b + e c t C s u r v e y p u r p o s e . 1 e conducted 4<E sample of survey in our pro+ect to +udge the satisfaction level or of customers which took loans. B O SECONDARY SOURCE:5 It was collected from internal sources. &he secondary data was collected on the basis of management books, the data already collected by someone else "nnual report, Internet, previous years report from bank, preserved information in the Bank*s database and website of the bank. #23 DATA CO>>ECTION METHOD 3. Tuestionnaire Method 4. "nnual report from the bank #24 SAMP>E SICE: Garge sample gives reliable result than small sample. 2owever, it is not feasible to target entire population or even a substantial portion to achieve a reliable result. )o, in this aspect selecting the sample to study is known as sample size. 2ence, for my pro+ect my sample size was 4<E.&he )ample )ize consists of both the ,rofessional and Business class people. 6or the %uestionnaire I have taken the sample size of 4<E respondents randomly. #2! TOO>S OF ANA>YSIS 0ata has been presented with the help of bar graph, pie charts, line graphs etc. 2ypothesis8 3. Dhi!s%uare test "1

DATA ANA>YSIS AND INTERPRETATION >OAN RATE OF THE SAR?ODAYA BANK F ?ARACHHA BANK %271152712& S)2 N02 3 F ; < @ A B : Pa)(./,*a) #old Goan Machinery Goan 5ehicle Goan )DLJ5, Goan Dash Dredit Goan Mortgage Goan &76) Goan 2ousing Goan Sa)304a9a Ba'+ 33H 3<H 34.<EH 3FH 3FH 3<H 3FH 34H 34H 3;H 3FH 3FH 3FH 3<H 3;H 34H ?a)a/hha Ba'+

Ta-* A : Th *0a' )a( 0= -0(h -a'+ %271152712&

INTERPRETATION: Banks are free to determine interest rate. 1hile each bank decides its own interest -ate, some of the criteria that could go into the determination of the interest -ate are8 "2

U cost of deposits; U ad+ustment for the negative carry in respect of D-- and )G-; U unallocated overhead cost for banks such as aggregate employee compensation relating to administrative functions in corporate office, directors and auditors fees, legal and premises e(penses, depreciation, cost of printing and stationery, e(penses incurred on communication and advertising, cost incurred towards deposit insurance. U ,rofit margin By comparisons of interest rate of and )arvodaya bank 5arachha bank, I found that interest rate of some loan are same. 5arachha bank and )arvodaya bank provide the same interest rate but in the loans the interest rate of 5arachha bank is more in vehicle loan. Interest rate of machinery loan is more in sarvodaya bank but they also provide AH rebate on it. 1hile in 5arachha bank it*s not there. COMPARATI?E STUDY OF >OAN SECTIONED IN YEAR 271152712 BY

SAR?ODAYA BANK F ?ARACHHA BANK V"mt. in croreW >0a's 9 a) Sh0)( ( )8 *0a' M 4.,8 ( )8 *0a' >0'; ( )8 *0a' T0(a* Th sa)304a9a Ba'+ 2711 2712 @@.AE B3.4B <3.:A <<.:E ;.E@ @.B@ 344.AF 3;;.E< Ta-* : B INTERPRETATION Th ?a)a/hha Ba'+ 2711 2712 F3.;; ;:.@B FB.A< <<.A: ;<.@B <E.;E 33<.BA 3<<.BB

"3

6rom the above table I interpreted that the medium term loan of both the bank in year 4E34 is almost same but as the money well blocked in loan term loan the )arvodaya bank is not giving more long term loan and the long term loan of 5arachha bank is very high. &he total loan in the year 4E33!34 is more in the 5arachha bank i.e. nearly 3E crore more then of )arvodaya bank. Goan sectioned by both the bank is more than previous year.

3> GO>D >OAN V"mt. in croreW Pa)(./,*a) >0a' S /(.0' 4 I'( ) s( Ra( R -a( T.8 6 ).04 Th sa)304a9a Ba'+ 3@.@E 33H Vup to 3 lacks.W il 4 year Th ?a)a/hha Ba'+ 4F.:; 34H Vup to 3 lacks.W il 3 year

Ta-* : C

"4

INTERPRETATION 6rom the above diagram I interpreted that the interest rate of 5arachha bank is more. &he time period is less in 5arachha bank so recovery of loan is faster than )arvodaya Bank. &he loan sanctioned is also high in 5arachha bank.

2& MACHINERY >OAN V"mt. in croreW Pa)(./,*a) >0a' S /(.0' 4 I'( ) s( Ra( R -a( T.8 6 ).04 Th sa)304a9a Ba'+ 3@.3F 3<H A.EEH F year Ta-* : D Th ?a)a/hha Ba'+ F.A4 3;H 3.EEH 4 year

INTERPRETATION 6rom the above diagram I interpreted that the interest rate of sarvodaya bank is more but both the bank are giving the rebate on it. &he time period is less in "!

5arachha bank so recovery of loan is faster than )arvodaya Bank. "s the interest rate is more, the loan sanctioned is less in 5arachha bank. -ebate given by sarvodaya bank is more than varachha bank so, it will affect the loan sectioned by both the bank.

3& ?EHIC>E >OAN V"mt. in croreW Pa)(./,*a) >0a' S /(.0' 4 I'( ) s( Ra( R -a( T.8 6 ).04 Th sa)304a9a Ba'+ F.F@ 34.<EH il F year Ta-* : E Th ?a)a/hha Ba'+ ;3.<@ 3FH 3.EEH ; year

INTERPRETATION

""

6rom the above diagram I interpreted that the interest rate of )arvodaya bank is lesser than varachha bank, but still loan sactioned by varachha bank is more than that because of they provide 3H rebate on it.

4&2 CASH CREDIT >OAN V"mt. in croreW Pa)(./,*a) >0a' S /(.0' 4 I'( ) s( Ra( R -a( T.8 P ).04 Th sa)304a9a Ba'+ <F.EE 3FH il 3 year Ta-* : F Th ?a)a/hha Ba'+ 3:.:< 3FH il 3 year

INTERPRETATION

"#

6rom the above diagram I reveals that the interest rate of both the bank are same. Bank*s are not giving the rebate on it. &he time limit is same in both the bank i.e. 3 year. )till, the loan sanctioned in the )arvodaya bank is much more.

!&2 MORTGAGE >OAN ,articular Goan )ectioned Interest -ate -ebate &ime ,eriod &he sarvodaya Bank @.<4 3<H il 4 year

V"mt. in croreW &he 5arachha Bank 4.:F 3<H 3H 3 year

Ta-* : G

INTERPRETATION "$

6rom the above diagram I interpreted that the interest rate of both bank are same. &he 5arachha bank are giving the rebate on it. &he time period is less in 5arachha bank so the loan sectioned by bank is lesser than )arvodaya Bank.

"&2 TUFS >0a'

V"mt. in croreW Pa)(./,*a) >0a' S /(.0' 4 I'( ) s( Ra( R -a( Th sa)304a9a Ba'+ 3@.B; 3F.<EH il Ta-* : H Th ?a)a/hha Ba'+ ;4.3: 3;H 3H

INTERPRETATION

"1

6rom the above diagram I interpreted that the interest rate of both the bank are different. but varachha bank provide 3H rebate on it. 5arachha bank sactioned double loan than sarvodaya bank.

#&2 HOUSING >OAN V"mt. in croreW Pa)(./,*a) >0a' S /(.0' 4 I'( ) s( Ra( R -a( T.8 P ).04 Th sa)304a9a Ba'+ @.B@ 34H il 4 year &able8 I Th ?a)a/hha Ba'+ @.3: 34H 3H 3 year

INTERPRETATION

#7

6rom the above diagram I interpreted that the interest rate of both the bank are same but varachha bank giving the rebate on it. &he time period is less in 5arachha bank so recovery of loan is faster than )arvodaya Bank.

STUDY OF >OAN SANCTIONED BY SAR?ODAYA BANK F ?ARACHHA BANK IN 2711 F 2712

S)2 N02

Pa)(./,*a) 9 a)

Sa)304a9a Ba'+ 2711 @.EE 33.F@ 4.:@ ;@.:B A.@B 3F.B@ ;.E@ Ta-* : @ 2712 3@.@E 3@.3F F.F@ <F.EE @.<4 3@.B; @.B@

?a)a/hha Ba'+ 2711 3F.EF 3.:A 4B.3F 3F.F4 ;.:@ F:.EE 4.<4 2712 4F.:; F.A4 ;3.<@ 3:.:< 4.:F ;4.3: @.3:

3 4 F < @ A B

#old Goan Machinery Goan 5ehicle Goan Dash Dredit Goan Mortgage Goan &76) Goan 2ousing Goan

INTERPRETATION 6rom the above table I interpreted that in both the bank provide more loan than previous year. In case of mortgage loan amount of loan is decrease. It was see that the growth of the both bank and .ncrease in services provided by bank with lower rate of interest.

#1

ANA>YSIS OF JUESTIONNAIRE J51 what is your occupationX &ype of occupation ,rofessional )elf /mployed Business man 2ouse wife )tudent $ther

o. of respondents H of respondents

:F FA.4EH

:E F@.EEH

;E 3@.EEH

B F.4EH

A 4.BEH

34 ;.BEH

#2

INTERPRETATION $ut of 4<E respondents, it is found that FAH respondents are professional and F@H are self employed and FH respondents are housewife same as students. J52. 1hich income group do you belongX =,er month> Gevel of Income o. respondents H respondents of of Y3<EEE B4 F4.BEH 3<EEE!4EEEE :E F@.EEH 4EEEE!FEEEE ;E 3@.EEH FEEEE C above FB 3<.4EH

INTERPRETATION 6rom the above graph I saw that most of the respondents having income of 3<EEE to 4EEEE and rest are more than that.

#3

J53. 2ave you ever taken loanX ,articulars o. of respondents H of respondents Nes 434 B;.BEH o FB 3<.4EH

INTERPRETATION $ut of the sample of 4<E respondents B;H have taking loan from bank and rest are not. J54. If yes, from which BankX ,articulars )arvodaya 5arachha others

o. of respondents H of respondents

334 ;;.BEH

33B ;A.4EH

4E B.EEH

#4

INTERPRETATION $ut of 4<E respondents ;AH are taking loan from 5arachha bank and ;<H are taking from )arvodaya bank and rest are from others bank. )o, varachha bank sactioned 4H more loan than )arvodaya bank. J5". "mong the various types of loan for which type have you taken loan mostX ,articulars o. #old 5ehicle Goan 2ousing @E 4;H Goan ;E 3@H Machinery Goan FF 3F.4EH Dash credit Mortgage Goan AF 4:.4EH Goan 3B A.4EH

Goan of 4@ 3E.;H

respondents H of respondents

#!

INTERPRETATION $ut of the 4<E respondents 4:H are taking D.D loan and 4;H are preferred for vehicle loan. 1hich is show the more demand of these loans with low interest rate and better service. J5#2 1hile taking loan, which things attract you the mostX ,articulars Interest rates Tuality )ervice of 6le(ible repayment period easy availability Gower processing fees

o.

of AE

FA 3;.BEH

;@ 3B.;EH

<@ 44.;EH

;3 3@.;EH

respondents H of 4BH respondents

#"

INTERPRETATION 6rom the above graph I interpreted that the most things which considering while taking loan which is that interest rate and easy availability of loan by bank. J5$. 2ow much loan amount you tookX ,articulars Y3 lakhs 3!< lakhs <!3E lakhs Z3E lakhs

o.

of

@4 4;.BEH

:; FA.@EH

<A 44.BEH

FA 3;.BEH

respondents H of respondents

##

INTERPRETATION 6rom the above graph I interpreted that out of 4<E respondents FAH are taking loan up to 3 to < lakh and 3;H are taking loan of more than 3E lakh according to need of them. J51. "re you satisfy with the bank from where you have availed the loanX ,articulars o. Nes of 43E o ;E 3@H

respondents H of B;H respondents

#$

INTERPRETATION 6rom the graph I interpreted that B;H respondents are satisfied with the where they availed the loan and rest are not. J5172 1hat is reason for getting it financedX ,articulars on funds of 3@3 -eluctance to &a( on go F: 3<.@EH other

availability of pay cash in benefit o. ;F 3A.4EH A 4.BEH

respondents H of @;.;EH respondents

#1

INTERPRETATION $ut of the 4<E respondents most of the people are giving the reason of taking loan is non availability of funds. J5112 6rom where have you got information about loans schemeX

,articulars o. of

ewspapers A< FEH

Magazines 33 ;.;EH

2oardingLbanners @A 4@.BEH

1ord of Internet mouth @F 4<.4EH F; 3F.@EH

respondents H of respondents

$7

INTERPRETATION 2ere, we see that most of the people getting information about loan from daily newspaper and hordingLbanners, so, it is preferable for bank to advertise current scenario and facilities provided by bank with the help of these effective tools.

J5122 "re you satisfy with the interest rate charges by your bankX ,articulars o. )trongly agree of AA "gree BB F<.4EH )trongly disagree F: 3<.@EH 0isagree ;@ 3B.;EH

respondents H of FE.BEH respondents

$1

INTERPRETATION $ut of the 4<E respondents F<H are agree with the interest rate charged by bank and 3BH are not agree or disagree with bank charges. J5132 -eputation of banking institution is to be taken into consideration while selecting loan. 1hat is your opinionX

,articulars o. of respondents H of respondents

)trongly agree BF FF.4EH

"gree AB F3.4EH

)trongly disagree F: 3<.@EH

0isagree <E 4E.EEH

$2

INTERPRETATION 6rom the above graph we conclude that FFH respondents are strongly agree with the favour that reputation of banking institution is to be taken into consideration while selecting loan while 3@H are strongly disagree. J514.2ow do you compare the schemes with the schemes of other bankX ,articulars -esponse Minimum balance o. of respondents H of respondents F4 34.BEH re%uired 4: 33.4EH )ecurity to be ,aper pledged A4 4B.BEH workL Interest rate

6ormalities ;: 3:.@EH @B 4A.4EH

$3

INTERPRETATION $ut of 4<E respondents 4:H are taken into consideration security to be pledged with compare to other bank while 4AH consider the interest rate charged by bank while taking loan. J5 1!. 1hich grade you want to give of loan to your bankX

,articulars o. of respondents H of respondents

/(cellent <@ 44.;EH

#ood :: F:.@EH

"verage AE 4BH

Below average A< FEH

$4

INTERPRETATION $7& $6 4<E respondents 44.;EH are satisfied with the loan provided by bank and they give them e(cellent grade. FEH are given below average grade. "nd most like F:.@EH give good as a service or loan provided by their chosen bank.

$!

STATISTICA> ANA>YSIS H960(h s.s ( s(.';

1&2H7 : N,** H960(h s.s &here is no significant relationship between types of loan taken by customer and income class. H1 : A*( )'a(.3 H960(h s.s &here is a relationship between types of loan taken by customer and income class.
TYPES OF >OAN P INCOME C>ASS CROSS TABU>ATION I'/08 /*ass Q 1!777 1!777527777 T96 s *0a' 0= #old loan vehicle loan 2ousing loan machinery loan Dash credit B 44 3F 33 4A 3 $2 34 4E B 3F 4A 3E 17 T0(a* 277775 37777 ; 33 : A A F 41 R 37777 F @ 3E 4 34 ; 3# 2# !1 47 33 #3 1$ 2!7

loan Mortgage loan T0(a*

Ch.5SD,a) T s(s ?a*, 4= As9862 %25s.4 4& $" S.;2

,earson Dhi!)%uare

4E.;B;

3<

.3<;

INTERPRETATION: " chi!s%uare test of independence of the relationship between types of loan and income class finds a statistically significant no relationship between the variables. &he probability of the chi!s%uare test statistic =chi!s%uare[ 4E.;B;>was p Z E.3<;, greater than the alpha level of significance of E.E<. &he null hypothesis that .&here is no significant relationship between types of loan taken by customer and income class? is accepted. 2&2 H7 : N,** H960(h s.s &here is no relationship between amount of loan taken by customer and income class. H1 : A*( )'a(.3 H960(h s.s &here is a relationship between amount of loan taken by customer and income class.

AMOUNT OF >OAN P INCOME C>ASS CROSS TABU>ATION I'/08 /*ass Q 1!777 1!7775 277775 T0(a* R 37777

$#

A8(2 0= *0a' T0(a*

Y 3 lakhs 3!< lakhs <!3E lakhs Z 3E lakhs

4@ 4A 3A 34 $2

27777 44 F; 4F 33 17

37777 @ 3: 3E @ 41

A 3; : A 3#

"1 14 !1 3" 2!7

Ch.5SD,a) T s(s ?a*, ,earson Dhi!)%uare @.;;E 4= : As9862 %25s.4 4& .@:< S.;2

INTERPRETATION: " chi!s%uare test of independence of the relationship between amount of loan and income class finds a statistically significant no relationship between the variables. &he probability of the chi!s%uare test statistic =chi!s%uare[ @.;;E>was p ZE.@:<, greater than the alpha level of significance of E.E<. &he null hypothesis that .&here is no significant relationship between amount of loan taken by customer and income class? is accepted. 3&2 H7 : N,** H960(h s.s &here is no relationship between types of loan taken by customer and occupation of them. H1 : A*( )'a(.3 H960(h s.s

$$

&here is a relationship between types of loan taken by customer and occupation of them.
TYPES OF >OAN P OCCUPATION CROSS TABU>ATION 0//,6a(.0' 6)0= ss.0' a* &ypes of loan #old loan vehicle loan 2ousing loan machinery loan Dash credit loan Mortgage loan T0(a* 12 17 41 $ " 13 2!7 3E 4< 3F 33 4A @ T0(a* S *= 86*09 4 : 44 3; 3F 4B ; ; 33 < @ : @ E 3 4 3 F 3 3 E 3 E ; E F E < 4 4 3 2# !1 47 33 #3 1$ B,s.' s s 8a' H0,s <.= s(,4 ' ( 0(h )

Ch.5SD,a) T s(s ?a*, ,earson Dhi!)%uare 4;.;<B 4= 4< As9862 S.;2 %25s.4 4& .;:F

INTERPRETATION: " chi!s%uare test of independence of the relationship between types of loan and occupation finds a statistically significant no relationship between the variables. &he probability of the chi!s%uare test statistic =chi!s%uare[ 4;.;@>was p ZE.;:F, greater than the alpha level of significance of E.E<. &he null hypothesis that .&here is no significant relationship between types of loan taken by customer and occupation? is accepted.

$1

4& H7 : N,** H960(h s.s &here is no relationship between types of loan taken by customer and age of them. H1 : A*( )'a(.3 H960(h s.s &here is relationship between types of loan taken by customer and age of them.
TYPES OF >OAN P AGE CROSS TABU>ATION

A; Q 37 T96 s *0a' 0= #old loan vehicle loan 2ousing loan machinery loan Dash credit 9 a) 4 3< F E @ F 21

T0(a* 37 5 47 9 a) B 33 3: 3< 4@ @ $! 47 5 !7 9 a) 34 3B 3E 3F 3: @ #$ R !7 9 a) < 3< B < 44 F !$ 2# !1 47 33 #3 1$ 2!7

loan Mortgage loan T0(a*

Ch.5SD,a) T s(s ?a*, ,earson Dhi!)%uare FE.EBE 4= 3< As9862 S.;2 %25s.4 4& .E34

INTERPRETATION: " chi!s%uare test of independence of the relationship between types of loan and age finds a statistically significant relationship between the variables. 17

&he probability of the chi!s%uare test statistic =chi!s%uare[ FE.EBE >was p YE.E34, less than the alpha level of significance of E.E<. &he null hypothesis that .&here is no significant relationship between types of loan taken by customer and age? is re+ected.

FINDINGS
By the comparative study of loan analysis, I found various differences in the loan provided by both the banks. &he findings in different loans are as follow8 12G0*4 >0a': 6rom the comparison of gold loan of both bank, I found that interest rate on gold loan of )arvodaya bank is 3H less as compare to 5arachha bank. &here is not any rebate on gold loan of both banks. &he amount of gold loan given by ) a r v o d a y a b a n k i s < E H o f v a l u a t i o n o f g o l d w h e r e a m o u n t g i v e n b y 5arachha bank is also <EH of valuation of gold. &he amount of gold loan given by )arvodaya bank is less than 11

5arachha bank which is A crore less. "lso, the time period of gold loan of sarvodaya bank is 3 year more than varachha bank. )o, &he time taken by bank for recovery of loan amount is more than varachha bank. 22Ma/h' )9 >0a'8 Domparative study of machinery loan of both banks gives clear d i f f e r e n c e between time period of both bank rebate on it, because of that reason )arvodaya bank sectioned more loan than 5arachha bank. )arvodaya bank provide @H more rebate than varachha bank. It was helpful for sarvodaya bank progress. 32? h./* >0a':

v e h i c l e loan of )arvodaya bank is &he amount of hypothecation loan of )arvodaya bank is A<H of %uotation. 1 h e r e t h e m o u n t o f 5 a r a c h h a b a n k i s @ < H t o A < H o f % u o t a t i o n . & i m e period of hypothecation loan of 5arachha bank is @E months, which is 34 moths more than 5arachha bank. 6rom the diagram we can interpreted that the interest rate of )arvodaya bank is lesser than varachha bank, but still loan sectioned by varachha bank is more than that because of they provide 3H rebate on it. 42Cash C) 4.( >0a': 6rom the comparative study of cash credit loan, I found that interest rate on cash credit loan of both the bank are same. &here is not any rebate on cash credit loan of both banks. &ime period on cash credit loan of both the bank are same still , the loan sanctioned in the )arvodaya bank is much more. !2 M0)(;a; >0a'

12

6rom the diagram i found that the interest rate of both bank are same. &he 5arachha bank are giving the rebate on it. &he time period is less in 5arachha bank so the loan sectioned by bank is lesser than )arvodaya Bank. )arvodaya bank provided around a crore more loan than varachha bank.

"&2 TUFS >0a'

6rom the comparative study of &76) loan that the interest rate of both the bank are different but varachha bank provide 3H rebate on it. 5arachha bank sactioned double loan than sarvodaya bank.

#&2 H0,s.'; >0a'

Domparision of housing loan of both the bank I found that the interest rate of both the bank are same but varachha bank giving the rebate on it. &he time period is less in 5arachha bank so recovery of loan is faster than )arvodaya Bank.

F)08 (h a66*9.'; Ch. O sD,a) ( s(s I =0,'4 4 (ha( :

&here is no relationship between types of loan taken by customer and income class. &here is no relationship between amount of loan taken by customer and income class. &here is no relationship between types of loan taken by customer and occupation of them.

13

&here is a relationship between types of loan taken by customer and age of them.

>IMITATION OF THE STUDY

&his study also includes some limitations which have been discussed as follows8 6indings and analysis is relevant only for the given period of time and its usefulness change with time. &he time period for the analysis is not sufficient for detailed analysis this may be limitation of the study. 0ue to lack of e(perience on researcher*s side there is an element of error.

14

/ffects of various political, legal and other macro environment factors are ignored. &he limitation of tools used in the pro+ect is also the limitation of the report. &he sample size of 4<E customers and 4 banks might prove a limitation because of difficulty in generalization of results. &o collect the data from various banks was %uite difficult due to non! cooperation of some banks. &his proved to be ma+or limitation of the study.

SUGGESTION
Interest rate, processing fees, tenure, security and margin money!all these are important in all kinds of retail loans ! housing loans, education loans, 5ehicle loans, personal loans etc. )o bank should revise all above keeping in view of all 1!

other banks. Bank should appoint some marketing e(ecutive for this purpose who can give information of market and other banks, revision of loan timely so that the bank can revise it very soon. &hese marketing e(ecutives should give report to 2ead $ffice directly for timely processing, so that the market can be fully captured as early as possible. Gimit of loan amount of all retail loans should keep increasing keeping in view of private sector banks and other nationalized banks. $ne of the ma+or strengths of )arvodaya sahakari bank is timely processing of loan application. )o, it must keep on processing the loan application as soon as possible. &he interest income of the bank should be increases by providing more loan and advances. But the level of this loan and advances should also be maintained by the bank. &oday is the competitive era of marketing, so everybody should do marketing for surviving in the industry. &hese will become necessary for bank to do marketing. &he power of sanctioning small amount loans should be given to branch manager. )o, it saves time period of the loan procedure. Goans procedure and loan documents can be make as possible as simple. In last, I suggest that bank should update its website for better marketing so customer see the bank's position progress.

BIB>IOGRAPHY
BOOKS:

1"

3. .0onald -. Dooper C ,amela ). )chindler S Business research method, : th edition &ata grow 2ill /ducation ,vt. Gtd. , ew 0elhi, 4EE@. ,age no. :E!:B, ;:E!;:4?

4. .-ichard G. Gevin C 0avid ). -ubin, &he :th edition of )tatistics for mgt., ,ublished by 0orling Jindersley =I 0I"> ,5&. Gtd.? ,age no. S <@A!<@:

F. .Jen black S Business )tatistics ,ublished by '$2 7.).". ,age no. S ;@A!;A;? ;.

1IG/N )$ ). I D.

eelam D. #ulati !,rinciples of banking management =first edition>.

A'',a* ) 60)(s 0= (h 3a)a/hha /05062 -a'+ >(42 0 3@th annual report = year 4E3E!33> 0 3Ath annual report = year 4E33!34>

A'',a* ) 60)(s 0= (h Sa)304a9a Saha+a). -a'+ >(42 0 annual report =year 4E3E!33> 0 annual report =year 4E33!34>

1#

W -s.( s: 3>. http8LLen.wikipedia.orgLwikiLDentral\Bank\of\India 4>. http8LLwww.varachhabank.comLinde(.phpXpgid[33 F>. http8LLinfo.shine.comLIndustry!InformationL6inance!and!BankingL33A.asp( ;>. http8LLwww.dnb.co.inLbfsisectorinindiaLBankD4.asp <>. http8LLwww.rncos.comL-eportLIM<<4.htm @>. http8LLwww.sahakaribank.comLaboutbank.phpXpgid[3

1$

ANNESURE
1& JUESTIONNAIRE D a) S.)H Ma4a8 I am 2ina ,armar doing MB" from ).-. Guthra Institute of management. I am preparing a pro+ect on a ID$M,"-"&I5/ )&70N $6 G$" )D2/M/ Ifor this I have designed a %uestionnaire to know your views and satisfaction level of loan .please fill the given as per your thinking and e(periences with this. I will be thankful to you for this. 3. ame8 \\\\\\\\\\\\\\\\\\\\ 4. "ge8 =a> Below FE yr =b> FE!;E yr =c> ;E!<E yr =d>"bove<E

F. $ccupation8 =a>,rofessional =b>)elf!employed =c>Businessman =d> 2ouse wife =e> )tudent =f> $ther

;. 1hich income group do you belongX =,er month> =a> less than 3<EEE =b> 3<EEE!4EEEE =c> 4EEEE!FEEEE =d> FEEEE and above 11

<. 2ave you ever taken loan X =a> Nes @. If yes, from which BankX =a> )arvodaya =b> 5arachha =c> others =b> o

A. "mong the various types of loan for which type have you taken loan mostX =a> #old Goan =b> 5ehicle Goan =c> 2ousing Goan B. 1hile taking loan, which things attract you the mostX =a> Interest rates =b> Tuality of )ervice =c> 6le(ible repayment period =d> easy availability =e> Gower processing fees =d> Machinery Goan =e> Dash credit Goan =f> Mortgage Goan

:. 2ow much loan amount you tookX =a> Gess than 3 lakhs =b> 3!< lakhs =c> <!3E lakhs =d> more than 3E lakhs

3E. "re you satisfy with the bank from where you have availed the loanX

177

=a> Nes 33. 1hat is reason for getting it financedX =a> =a> on availability of funds =b> =b> -eluctance to pay cash in on go =c> =c> &a( benefit

=b> o

=d> =d> ......

"ny

other

=please

specify> ...................................

34. 6rom where have you got information about loans schemeX =a> =a> ewspapers =b> =b> Magazines =c> ] 2oardingLbanners =d> =d> 1ord of mouth =e> =e> Internet

3F. "re you satisfy with the interest rate charges by your bankX

=a> )trongly agree =b>"gree

] )trongly disagree =d>0isagree

3;. -eputation of banking institution is to be taken into consideration while selecting loan. 1hat is your opinionX =a> "gree =b> 0isagree ] Indifferent

171

3<. 2ow do you compare the schemes with the schemes of other bankX =a> -esponse =b> Minimum balance re%uired ] )ecurity to be pledged =d> ,aper workL 6ormalities =e> Interest rate

3@. 1hich grade you want to give of loan to your bankX

=a> /(cellent =b> #ood

] "verage =d> Below average

THANKS

SAR?ODAYA SAHAKARI BANK >TD2 BA>ANCE SHEET Pa)(./,*a)s >.a-.*.(9 /%uity -eserves )ubsidiary 6und 0eposit8 !6i(ed 0eposit 3,F<,4B,4F,3<A.@< 172 3,<4,E4,A:,B<A.@< <,E@,AE,EEE F4,:@,E3,FA4.:E @,33,F3,BEE F;,AE,F:,;E:.<E 2717511 2711512

!)aving 0eposit !Durrent 0eposit Gocker 0eposit Borrowing Bills ,ayable Branch "d+ustment Interest $verdue Interest ,ayable $ther Giability ,rofit T0(a*

@E,:;,EA,AA<.<4 F3,3;,A<,4A@.EF <@,BA,<<<.<; ! 4E,F3,3;:.;B ! 3,BF,BE,43;.A; 4,::,::,B:F.3@ ;,3E,4@,3@F.@B 3,B3,3B,:44.4A 2B#"B12B21B4$721#

@F,::,F;,B:E.4; FF,;F,A:,B3A.:A @;,:<,3@@.<E ! <4,FE,;B;.<4 ! 3,B4,FA,@@;.A; 4,3<,EE,EF3 ;,:A,EF,E@@.B< ;,B@,@E,E33.:3 3B7!B2!B12B2772$$

Ass ( Dash Bank Dall C )hort &ime Investment Investment )ubsidiary Investment 6und Goan C "dvance !)hort &erm !Moderate &erm !Gong &erm Interest -eceivable @@,AE,F<,3<4.:F <3,:A,4A,A<A.F: ;,E@,3B,E;B.F: F,AB,BA,E<A.B3 B3,4B,@F,3A;.E< <<,:E,BA,BBA.BF @,B@,FF,AA4.B: F,B:,:;,EBE.<F :B,F<,E<,BB@.A< ! :F,EF,<:,3E;.@3 ! 4,:4,EA,A:F.;< ;;,@@,:4,EB<.3A <<,EE,EEE A,:E,@4,;F<.@E <E,A@,F;,;:@.4F !

173

Bills -eceivable Branch "d+ustment Building 6urniture $ther "ssets T0(a*

4E,F3,3;:.;B ! :<,FA,@@B.:3 4,F3,;A,F:;.;4 ;F,F3,;B@.4A 2B#"B12B21B4$721#

<4,FE,;B;.<4 ! B:,34,4:3.:3 4,E4,4F,<<;.AB 4,3<,:E,:3A.:F 3B7!B2!B12B2772$$

?ARACHHA CO2OPERATI?E BANK >TD2BA>ANCE SHEET

Pa)(./,*a)s >.a-.*.(9 /%uity -eserves )ubsidiary 6und 0eposit8 !6i(ed 0eposit !)aving 0eposit !Durrent 0eposit Gocker 0eposit Borrowing Bills ,ayable Branch

2717511

2711512

A,4B,@<,;EE ;<,FB,EE,E:E.;4

A,:E,;;,3EE 4:,:<,@3,F::.33 !

:F,B@,<F,;4@.B; :F,;F,<F,:<E.AA A3,@A,:;,A4:.AB ! ! FB,4A,;:B !

:B,@:,;;,FB<.33 3,EF,EA,AF,F;<.<E BA,33,:;,@:3.A: ! ! 3@,<:,EE@ !

174

"d+ustment Interest $verdue Interest ,ayable $ther Giability ,rofit T0(a* F,F<,@3,3;A.:A 3;,:A,4;,:;: :,B4,3F,FBE.AE ;,E<,AA,<BF.;@ 3B44B23B#2B1412$# ;,EA,FF,;3@.:A BE,<4,:3B.EE 3F,34,<;,<33.EF <,E<,<<,E:E.@B 3B#7B$3B!7B!13214

Ass ( Dash Bank Dall C )hort &ime Investment Investment )ubsidiary Investment 6und Goan C "dvance !)hort &erm !Moderate &erm !Gong &erm Interest -eceivable Bills -eceivable Branch "d+ustment Building F,A3,:E,EF3.:A F,B4,4;,3F@.:A FB,4A,;:B ! 3@,<:,EE@ 4,<4,44,B<B ;<,@B,43,4;<.B< A,;3,<F,4AF.BA <E,;E,:4,<FA.<B B,<@,E@,FB;.:A F3,;F,::,;B4.;; FB,A<,A@,:B<.;3 ;:,@B,F@,:E@.4: <<,AB,BE,E::.;B 3,@A,33,;F,A@A ! 3,@:,4B,BA,<BF B,B4,;;,<F3.:B F<,F;,B<,:3E.3F ! B,A<,@F,AB:.;A 3<,AB,A;,A:<.AA !

17!

6urniture $ther "ssets T0(a*

3,AB,:4,:<E.B@ F,@B,F@,;A4.4@ 3B44B23B#2B1412$#

4,44,A;,3;4.B@ F,B4,4B,4A4.A@ 3B#7B$3B!7B!13214

17"