SBM Final-Ok1

A STUDY ON LOAN AND ADVANCES OF STATE
BANK OF MYSORE
with special reference to SBM Branch, Gandhi Bazar,
Shivamogga
CONTENTS
Chapter 1
INTRODUCTION
1.1 Introduction
1.2 Statement of the problem
1.3 Objectives of the Study
1.4 Scope of the Study
1.5 Methodology
1.6 Limitation of the Study
1.7 Chapter Scheme
Chapter 2
PROFILE OF THE COMPANY
2.1 Origin
2.2 Financial Profile
2.3 Mission, Vision and Values
2.4 Milestone
2.5 Products and Services
2.6 Organization Structure of the SBM
Chapter 3
PROFILE OF THE STUDY AREA
3.1 Establishment of the Branch
3.2 Mission and Vision
Govt. First Grade College, Shivamogga Page | 1

Chapter 4
CONCEPTUAL FRAMEWORK
4.1 Meaning of Priority Sector
4.2 The important Segments of Priority Sectors
4.3 Loan Scheme
4.4 Agricultural Schemes
4.5 NPA (Non Performing Assets)
Chapter 5
DATA ANALYSIS AND INTERPRETATION
Chapter 6
FINDINGS, SUGGESTIONS AND CONCLUSION
6.1Findings
6.2 Suggestions
6.3 Conclusion
Annexure
 Questionnaire
 Bibliography

Chapter – 1
INTRODUCTION
1.1 Introduction
1.2 Statement of the problem
1.4 Scope of the Study
1.5 Methodology
1.6 Limitation of the Study
1.7 Chapter Scheme

Chapter 1
INTRODUCTION
1.1 Introduction
Banks play an important role in the modern world. The word 'Bank' is derived from the
Italian word ''Banco''. A Bank is an institution, which deals in money. Banks are the commercial
institutions, which receive money in the form of deposits from those who have money and lend
money to those to those who are in need of it. Today Banks are not only suppliers of money but
also manufactures of money.
Home Loan Offers made available by the financial organizations. People nowadays are
opting Home Loans for their varied needs. The types of loan vary with diverse requirements of
the clients. One opts for home loans for variety of purposes such as construction of home, its
renovation and extension as well as buying and purchase of home or property. Varied alternatives
are also available for the customers. An individual is offered all alternatives of Home Loans to
choose from depending on their requirement. The Housing Finance Companies (HFCs) provides
various options today to woo their customer. After accessing your requirements you can choose
Home Loans according to your exact needs.
Modern commercial Banking, in its present form, is of recent origin. Though Bank is
considered to be an ancient institution just like money. It’s evolution can be traced in the
functions of money lender, the goldsmiths and the merchants.
A Bank has been often described as an institution engaged in accepting of deposits and
granting loans. It can also be described as an institution which borrows idle resources, makes
funds available to. It does not refer only to a place of lending and depositing money, but looks
after the financial problems of its consumers.
This era is the age of specialization with the changing situation in the world economy,
Banking functions have broadened. Financial institutions which are shaped by the general
economic structures of the country concerned vary from one country to another. Hence, a rigid
classification of Banks is bound to the unrealistic.

Meaning of Banking
In simple words, Banking can be defined as the business activity of accepting and
safeguarding money owned by other individuals and entities, and then lending out this money in
order to earn a profit. However, with the passage of time, the activities covered by Banking
business have widened and now various other services are also offered by Banks. The Banking
services these days include issuance of debit and credit cards, providing safe custody of valuable
items, lockers, ATM services and online transfer of funds across the country / world.
Definition of Bank
Prof. R.S Sayer’s definition
“Banks are institution who debt usually referred as Bank deposits are commonly accepted
in final settlement of other people debts”.
1.2 Statement of the Problem

This project is conducted to analyze the Loans and Advances of State Bank of Mysore
Gandhi Bazar Branch, Shivamogga and its impact on the performance of the Bank.

 To study the loans and advances provided by State Bank of Mysore
 To know opinion of customer regarding loan of State Bank of Mysore
 To analyze growth and Performance of the Bank
 To probe in to the problems
 To give suggestions to the concerned problems
 To state the origin and development of Banking
 To understand the meaning and definition of Bank
 To know about various Banking system in India

1.4 Scope of Study
The study is restricted to Shivamogga. The study is related to Loans and advances of
SBM. The Bank located at Gandhi Bazar, Shivamogga is selected for the study from respondents
and collected required information.
1.5 Methodology
Both primary and secondary are data used to complete the project report.
Primary data
It refers to the information received directly from the respondents by a researcher for a
particular purpose. Here primary data is collected through direct approach, and survey. The
survey was conducted by issuing questionnaires to the employees of the SBM and customers
about 50 respondents who have answered.
Secondary data
Data is collected from published or unpublished sources. Here secondary data is collected
from books and magazine and Bank records, Bank website etc.,
Sampling method
The types of sampling adopted for conducting the survey in Simple Random Sampling.
Sample Size
The sample size for survey conducted is 50 individuals comprising of adults.
The sample population for conducting the survey comprised of a total of 50 individuals the
sample of both sex (Male and Female).
1.6 Limitations of the Study

 The study has been restricted to the users of loan and advances only
 The survey is restricted to 50 respondents
 Time constraint is another limitation
 The study has been restricted to Shivamogga city only
 Lack of proper response from many respondents

1.7 Chapter Scheme
The study is divided into six chapters
Chapter 1 – Introduction, deals with statements of problems, objectives of the study, scope,
limitations, research methodology adopted.
Chapter 2– Profile of Company, makes an attempt trace out the historical back ground of the
company, Origin, Financial Profile, Mission, Vision and Values, Milestone, Products and
services, Organization Structure of the SBM
Chapter 3 – Profile of the area deals with the Establishment of the Branch, Mission and Vision,
and Products and Services
Chapter 4 – Conceptual framework deals with the Meaning of Priority Sector, The important
Segments of Priority Sectors, Loan Scheme, Agricultural Schemes, Non Performing Assets
Chapter 5 – Survey analysis and Interpretation deals with the consumer behaviour in relation to
SBM from different view points.
Chapter 6 – Findings, Suggestions and Conclusion deals with along with concluding remarks.

Chapter 2
2.1 Origin
2.3 Mission, Vision and Values
2.4 Milestone
2.6 Organization Structure of the SBM

Chapter 2
State Bank of Mysore was established in the year 1913 as Bank of

Mysore Ltd. under the patronage of the erstwhile Govt. of Mysore,
at the instance of the Banking committee headed by the great
Engineer- Statesman, Dr.Sir M.Visvesvaraya. Subsequently, in
March 1960, the Bank became an Associate of State Bank of
India. State Bank of India holds 90% of shares. The Bank's shares
are listed in Bangalore, Chennai and Mumbai stock exchanges.
2.1 Origin
State Bank of Mysore is a nationalised Bank in India, with headquarters at Bangalore. It
is one of the five associate Banks of State Bank of India.
State Bank of Mysore was established in the year 1913 as The Bank of Mysore Ltd. under
the patronage of then Maharaja Krishna Raja Wadiyar IV of erstwhile Govt. of Mysore, at the
instance of the Banking committee headed by the great Engineer-Statesman, Bharat Ratna Sir
M.Visvesvaraya. During 1953, "Mysore Bank" was appointed as an agent of Reserve Bank of
India to undertake Government business and treasury operations, and in March 1960, it became a
subsidiary of the State Bank of India under the State Bank of India Act 1959. Now the Bank is an
Associate Bank under State Bank Group and the State Bank of India holds 92.33% of shares. The
Bank's shares are listed in Bangalore, Chennai, and Mumbai stock exchanges.
This Bank has more than 745 branches and 10200 employees and the Bank has 606
branches (80%) in Karnataka State. The Bank has regional offices in Bengaluru, Mysore,
Mangalore, Mandya, Hassan, Shivamogga, Davangere, Bellary, Tumkur, Kolar, Chennai,
Coimbatore, Hyderabad, Mumbai and New Delhi. The Bank's turnover in the year 2012-2014
was around US$14 Billion and Profit about US$85 Million.

Establishment
State Bank of Mysore was established in the year 1914, Revenue is 1098.91 ( USD in
Millions ), Market Capital 18684.422393 (Rs. in Millions). Chairperson is Arundhati
Bhattacharya and MD Sharad Sharma.Financials Total Income - Rs. 65610.7 Million and Net
Profit - Rs. 4161 Million
Branch Network
The Bank has widespread network of 902 Branches and 14 Extension Counters spread
all over India including 6 Small and Medium Enterprise Branches, 4 Industrial Finance
Branches, 3 Corporate Accounts Branches, 7 Specialized Personal & Services Banking Branches,
9 Agricultural Development Branches, 3 Government Business Branches, 1 Asset Recovery
Branch besides 5 Service Branches, offering wide range of services to the customers.
Human Resources
The Bank has a dedicated workforce of 10,479 employees consisting of 3,738
supervisory staff and 6,741 non-supervisory staff. The skill and competence of the employees
have been kept updated to meet the requirement of our customers keeping in view the changes in
the business environment.

The Paid up Capital of the Bank as on 30.06.2014 is Rs 48.01 crores of which State Bank
of India holds 90% share. The Net worth of the Bank as on 30.06.2014 is Rs 3,937.91 crores
and the Bank has achieved a Capital Adequacy Ratio of 11.80% under Basel II guidelines The
Bank has an enviable track record of continuously earning profits and payment of uninterrupted
dividend since its inception in 1913. The Bank earned a net profit of Rs 52.22 crores for the
quarter ended June 2013 and earning per share is at Rs 43.50.
Business Profile
 Total Deposits of the Bank as at the end of June 2014 stood at Rs 55,893.38 crores and
the total Advances stood at Rs 44,078.95 crores including an export credit of Rs
1,515.51 crores . The Bank is a major player in Foreign Exchange dealings also and has

recorded a merchant turnover of over Rs 5,966 crores and a trading turnover of over Rs
69,063 crores for the quater ended June 2014.
2.3 Mission, Vision & Values

Vision
 My SBM.
 My Customer first.
 My SBM: First in customer satisfaction
Mission
 We will be prompt, polite and proactive with our customers.
 We will speak the language of young India.
 We will create products and services that help our customers achieve their goals.
 We will go beyond the call of duty to make our customers feel valued.
 We will be of service even in the remotest part of our country.
 We will offer excellence in services to those abroad as much as we do to those in India.
 We will imbibe state of the art technology to drive excellence.
Values
 We will always be honest, transparent and ethical.
 We will respect our customers and fellow associates.
 We will be knowledge driven.
 We will learn and we will share our learning.
 We will never take the easy way out.
 We will do everything we can to contribute to the community we work in.
 We will nurture pride in India
2.4 Milestone
 1913 - The Bank was established as 'Bank of Mysore Ltd.', on 19 May, with an authorised
capital of Rs.20.00 lakhs.
 Commenced its business on 2 October 1913.

 1953 - During the year, the Bank was appointed as an Agent of Reserve Bank of India to
conduct Government business & treasury operations.
 1992 - The State Government has also taken up vigorously 'ASHRAYA', a new housing
scheme for weaker sections & 'VISHWA', a new rural & cottage industry scheme. A new
programme called 'AKSHAYA' has also been launched to help the children in primary
education. The Konkan Railway Project & the New Mangalore Port Project are also
progressing satisfactorily.
 1994 - Several important measures have been introduced in the busy season credit policy of
November 1993 & slack season credit policy of May 1994, announced by Reserve Bank of
India.
 2000 - Mr. M. SitaramaMurty has been appointed as Managing Director, of Bank.
Crisil has reaffirmed the A+ & P1+ ratings assigned to the bond issue & the CD programme of
Bank.

2005 : 100% computerisation and Core Banking Solutions (CBS) introduced.

2005 : SBM unveils new single window system[clarification needed]

2006 :Mr P.P. Pattanayak has assumed charge as Managing Director of State Bank of Mysore.
MrPattanayak was earlier Deputy Managing Director [DMDs] & Chief Credit Officer of
State Bank of India, Mumbai.

2009 : The Company splits its share with face value from Rs.100/- to Rs.10/-.

2012 - Sri DilipMavinkurve takes charge as Managing Director of the Bank. He was earlier
Chief General Manager of the Bank.

2013- ShriSharad Sharma takes charge as Managing Director of the Bank.

Branches
Bank Branch Code Address State Bank Of Mysore (SBM)IFSC Code: SBMY0040132
MICR Code: 577006202
Branch Code: 040132Branch: SHIVAMOGGA MAIN
SHIVAMOGGA 577201
City: SHIVAMOGGA
0818-222307State Bank Of Mysore (SBM)IFSC Code: SBMY0040133
Branch Code: 040133Branch: BAZAAR, SHIVAMOGGA
SHIVAMOGGA 577202

MICR Code: NON-MICR
Branch Code: 040240Branch: HARIGE
HARIGE 577222

Branch Code: 040270Branch: RAVINDRANAGAR EXTN
SHIVAMOGGA 577201

Branch Code: 040381Branch: PEARLITE INDL ESTATE
SHIVAMOGGA 577201

MICR Code: NON-MICR
Branch Code: 040444Branch: VINOBANAGARA
SHIVAMOGGA 577201

Branch Code: 040580Branch: APMC YARD
SHIVAMOGGA 577201

Branch Code: 040664Branch: GOPALAGOWDA EXTN
SHIVAMOGGA 577204

MICR Code: NON-MICR
Branch Code: 040596Branch: Region I HZ
STATE BANK OF MYSORE, REGIONAL OFFICE, REGION-I , HUBLI ZONE, II nd

FLOOR, GRADUATES CO-OPERATIVE SOCIETY BUILDING, KUVEMPU ROAD,
SHIVAMOGGA - 577 201

Branch Code: 040852Branch: PESITM CAMPUS SHIVAMOGGA

 Core Banking Solution (CBS)
 Internet Banking (INB)

 Real Time Gross Settlement (RTGS)
 National Electronic Fund Transfer (NEFT)
 List of RTGS enabled Banks and Branches (with their IFSC codes)
 List of RTGS enabled Branches of SBM (with their IFSC codes)
 ATMs
 Cash Deposit Machine
 Mobile Banking
 IMPS
 Core Banking Solution

State Bank of Mysore is the first karnataka-based Bank with fully networked branches.
The Bank is fully on "CORE BANKING SOLUTION" From 31.12.2005. In record time of one
calendar year, the Bank completed the exercise of converting all the branches to Core Banking to
provide the convenience of anytime, anywhere Banking to all our valued customers.
State Bank of Mysore embarked upon the latest Banking Technology platform by
implementing the Core Banking Solutions (CBS) across all its branches, with an objective of
providing Banking convenience to the customers. Follwing are some of the features of CBS.
 Facilitates 24 X 7 Banking
As a result of implementing Core Banking, most of the facilities being offered by the
Bank are available to customers 24 hours a day, 7 days a week. The transactions are performed
using multiple channels such as ATMs and Internet Banking. Further, the trasactions using these
delivery channels are updated in the Central database in real time. Facilities like Phone Banking
and Mobile Banking would also be interfaced in CBS in due course.
 Anywhere Banking
Customers can avail of Banking services across all branches and channel network
irrespective of location where their accounts are maintained. Products like CORE POWER and
MULTICITY CHEQUE have been introduced in this direction. Besides, CBS facilitates swifter

remittance of funds across Banks through its in-built RTGS & NEFT functionalities. All
branches of the Bank are RTGS enabled.
 Integration with strategic sectors

Core Banking integrates all strategic sectors of Banking such as domestic Banking and
trade finance including forex. As a result, the information related to these areas is centrally
avilable for use or reference. Treasury and Asset Liability Management functions will also be
integrated to CBS in due course.
 Business Process Re-engineering (BPR) enabler

Core Banking enables implementation of BPR initiatives of the Bank and facilitates
centralised handling of various process - for both Assets as well as Liabilities. This has helped
our branches in reaching out to customers as they can now do less and less of back office work.
Internet Banking
Transaction based Internet Banking facility that enables customers to view and operate
their accounts through the internet, 24x7 hrs and 365 days, is now availabe to both retail and
corporate customers
All customers of the Bank

a. SBI Card Payments. (Pay bill)
b. SBI Life Insurance (View & Pay)
c. ICICI Prudential Life Insurance (View & Pay)
d. Birla Sun Life Insurance (View & Pay)
e. Om Kotak Mahindra. (View & Pay)
Inter Bank Transactions: 9.30Hrs to 18.00Hrs 9.30Hrs to 14.00Hrs
Salient features of the scheme

 RTGS is managed by RBI, enabling member Banks to receive and send payment across
Bank/ branches.
 The payments/ receipts are effected normally on real time basis.

 Branches need to be RTGS enabled to undertake these transactions.
 Currently the facility is not available on Sundays.
National Electronic Funds Transfer (NEFT) System

Reserve Bank of India has introduced a new payment product called ‘NEFT’ System.
This payment system is available for all the branches of our Bank for transfer of funds to the
customers of other Bank branches. In other words, the system facilitates Inter Bank transfer of
funds.
Method for putting through the transactions
 NEFT system is applicable for transfer of funds between Banks approved by RBI. Only
authorized branches of participating Bank can receive and send messages.
 A Bank customer (i.e. sender or originator) willing to avail of the emittance facilities
offered by a sending Bank shall submit an "NEFT Application Form" authorizing the
Bank to debit the sender's account and transfer funds to the beneficiary specified in the
NEFT Application Form.
 A transaction within the NEFT system will be initiated when the sending Bank accepts
application form indicating the date of transfer of funds.
 Currently , the clearing settlement for NEFT takes place at RBI in eleven batches
between Mondays to Fridays from 9.00 AM to 7.00 PM On Saturdays there will be five
hourly settlements from 9.00 AM to 1.00 PM.
Charges for NEFT transactions are as listed in the following table
Facility Charge
Outward Remittances 1. For outward
(w.e.f 15-11-2010) UptoRs 1.00 lac Rs 5/- per transaction + Cash
Handling charges + Service taxes as applicable
Above Rs 1.00 lac to Rs 2.00 lacsRs15/- per

transaction + Cash Handling charges + Service
taxes as applicable
Above Rs 2.00 lac Rs 25/- per transaction +

Cash Handling charges + Service taxes as
applicable
2) Inward -Nil-
Cash Deposit Machine

Cash Deposit Machine (CDM) is self-service machine which enables the ATM/Debit
card holder to deposit cash without any intervention of the branch staff.
You do not need to fill in deposit slips and stand in long queues at the cash counter of the
branch. Deposit your cash via CDM and get instant credit in your account. To use the CDM, you
need to be State Bank of Mysore account holder having an ATM Card.
Benefits
Sorting and arranging of cash denomination wise not required. Filling the deposit slips
not required. Standing in long queues not required.
Mobile Banking-
Our Bank has rolled out Mobile Banking Service (SBI freedom) on 31.08.2009.
The following functionalities will be provided in the Phase I
 Funds transfer (within and outside the Bank –using NEFT)
 Enquiry services (Balance enquiry/ Mini statement)
 Request services (cheque book request)
 Bill Payment (Utility bills, credit cards)
 M Commerce (Mobile Top Up, Merchant payment, SBI life insurance premium)
InterBank Mobile Payment Service (IMPS)

National Payment Corporation of India (NPCI) has offered Banks and Financial
Institutions a new payment service called “InterBank Mobile Payment Service (IMPS)”. Our
Bank has gone live on March 28, 2012 in IMPS through Mobile Banking Service.

Currently majority of interBank mobile fund transfer transactions are channelised through
NEFT mechanism. Under NEFT, the transactions are processed and settled in batches, hence are
not real time. Also, the transactions can be done only during the working hours of the RTGS
system
IMPS offer an instant, 24X7, interBank electronic fund transfer service through mobile
phones. IMPS facilitate customers to use mobile instruments as a channel for accessing their
Bank accounts and put interBank fund transfers in a secured manner with immediate
confirmation features.
The advantages of IMPS are that there is no need to register the payee / beneficiary and
transfer of funds is real time. Customers can send / receive money using mobile number and an
additional 7 digit Mobile Money Identifier (MMID) number.
New Deposit Schemes

 Centenary Liquid Term Deposit
 MyBankSuraksha Savings Account
 MyBankSuraksha Savings Plus Account
 MyBankSuraksha Time Deposit Account
 Saral Savings Bank account (No Frills account)
 SBM Tax Saver Scheme
 Multi Option Deposit Scheme
 Savings Bank account
 Term Deposits
 Reinvestment Deposits
 Recurring Deposits
 Harsha Deposit
Services Provided by SBM

1. Brokerage Services.

2. ATM Services.
3. Internet Banking.
4. E-pay.
5. E-mail.
6. Safe deposit locker.
7. Gift cheques.
8. Foreign inward remittance. Etc.

Table 2.1 Table showing Balance Sheet of the company
ASSETS (Rs. in millions) 31.03.2010 31.03.2011

Cash & Balance with RBI 26 61 54 80 17 35 04 80
Balances with Banks & Money at call 2 44 54 04 4 07 66 32
and short notice
Investments (Net) 84 02 75 95 113 77 96 06
Advances (Net) 210 27 14 59 256 16 05 22
Fixed Assets 1 22 99 12 7 31 36 32
Other Assets 6 10 71 95 6 17 70 28
TOTAL 330 69 70 45 404 85 79 00

Office - Wise Classification of SBM
Central Office
Local Head Office
Zonal Office
Regional Office
Branches
Organization Structure of The SBM
Chairmen – ArundathiBattacharya
Managing Director – Sharad Sharma
Chief General Manager – kalyanmukarjee
Deputy General Manager - J Ramakrishna
Assistant General Manager
Branch Manager
Other Staffs.
Chairmen and Managing Director belongs to central office Chief General Manager
belongs to Local - Head Office. Deputy General Manager belongs to Zonal Office. Assistant
Manager belongs to Regional Office. Branch Manager and Other staffs belongs to branch Office.

Important Offices Departments of SBM
1. Central Office (corporate center): Mumbai (Apex administration Office)
2. Central Accounts Office (Registered Office): Kolkata.
3. Inspection and Management Audit Dept: HYDERBAD (Shifted from Mumbai in 1/5/1987).
Credit Audit Department: Pune.
4. C.O Inspection and Audit Department (zonal Inspection Office):
Banglore, Bhopal, Bhubaneshwar, Jaipur, Lucknow, Chennai, Nagpur, Patna, Kolkatta.
5. Staff Colleges: Hyderbad Gurgaon
These are the central training institutes of the Bank.
State Bank Academy is being established at Gurgaon.
6. State Bank Institution of Rural Development: Hyderbad.
7. SBMICM: State Bank Institute of Information and communication Management, Hyderbad.
8. F.D. (Foreign Department): Kolkata
9. GAD (Government Accounts Department): Navi Mumbai.
10. GALO (Government Accounts Line Office): Nagapur.
11. UMALO (Union Minister Accounts Line Office): New Delhi.
12. Drafts Reconciliation Department: New Delhi.
13. Agency clearing Department: New Delhi.
14. Central stationery Department: Kolkata.
15. Security Forms Office: Nasik Road

Chapter 3
Profile of the Study Area


Profile of the Study Area
Now-a-days Bank plays an important role in the economic system of the country.
In countries like India, Banking system has to been courage in every urban area. After the
independence of our nation the leader are giving more prominence to improve the
economic progress of the people. This gave rise to birth of Banks.
In the middle of 19thcentury there were many started in every part of the nation.
Among them somewhere nationalized a n d some were non - Nationalized Bank. S B M
Bank is also one of which has its head office at Bangalore.
To populate the Banking system and to provide turban people. SBM Bank has started
its branches all over Karnataka. In Shivamogga SBM Bank Gandhi Bazar has got one
branch among such branches. The branch is situated in a Gandhi Bazar branch. This
branch was started on 23rd of February 1965. At that time the branch does not have
sufficient staff members.

Mission
To provide efficient financial services to the district for undertaking agricultural and
allied activities by adopting co-operative principles resulting in socio economic development.
Vision
Collection of resources from public and financing institutions and other institutions and
issue loans to farmers and other need agencies and customer.
Functions of the branch:

1.Primaryfunctions
2. Secondary f unctions

1. Primary Functions
a. Acceptance of deposits
b. Lending of funds
c. Investment of funds on securities
d. Creation of money
2. Secondary Function:
Apart from performing the main functions of accepting deposits & granting advances
Banker performs a number of subsidiary services also .By performing the subsidiary services
Banker will be able to earn goodwill of his customers attracts fresh customers secondary
junctions of commercial Banks may be divided into two classes they will be,
A.Agency services
B. General utility services
A. Agency services
1. Collecting of income on behalf of customer
2. Making payment on behalf of customer
3. Purchasing &sell of security on behalf of customer
4. Acting a s a trustee &executer.
B. General utility services
a) Provision of deposits vault arrangement
b) Issue of letter of credit, travel’s cheque, etc
c) Under writing of shares, debentures of loans raised by Government
d) Remittance of funds.

Organization Structure of SBM Shivamogga Branch
Brach manages
Deputy Manager
Assistant manager
Special Assistance
Senior Assistance
Assistance
Messengers
3.3 Products and services offered by the individual Branch

1. Short term Loan
a. Agriculture Loans
i. Crop Loan
ii. Cash Credit Loan
b. Non Agriculture Loans
i. Gold Loan
ii. Warehouse Receipt Loan
2. Medium term and Long term Loan
a. Agriculture Loans
i. Medium Agriculture Loan for minor irrigation, bullock corts
ii. Conversion of short term Loans to medium term loans.
b. Non Agriculture Loans
i. Housing Loan
ii. Vehicle Loan
iii. Loans to salary earners
iv. Medium term loan for small Scale industry
3. Other Services
a. Brokerage Services
b. ATM services
c. Internet Banking
d. E-pay

e. E-mail
f. Safe deposit Locker
g. Gift Cheques

Chapter 4
Conceptual Framework
4.1 Meaning of Priority Sector

4.2 The important Segments of Priority Sectors
4.3 Loan Scheme
4.5 NPA (Non Performing Assets)

Chapter 4
Conceptual Framework
4.1 Meaning of Priority sector

Priority sector is the Mandatory requirement implemented by the government for small
scale Industries, retail traders in goods, professional and self-employed persons, business
enterprises etc.
A loan is a financial arrangements under which an advances are granted by a Bank to a
borrower on a separate account called Loan account, when a loan is granted, the entire
amount of Loan is either credited to the deposit account of the borrower or is paid to him in
cash, so, the borrower is required to pay interest on the entire amount of the loan.
According to section 20 of the Banking regulation Act, the loans and advances of a Banking
company should be classified as secured and unsecured. Secured loans are given against
government securities, shares and debentures of industrial concerns, goods and documents
of title to goods, Jewelers, real estate and life policies.
Unsecured loans are given on the personal credit worthiness of the borrowers. They are
either can advances against the personal credit of the borrower or advances against personal
credit of borrower supported by a second signature.
The State Bank of Mysore provides various types of loans to priority sectors. Priority sectors
are identified by National Credit Council.
4.2 The important segments of priority sectors are

1. Small scale Industries.
2. Professional and self employed persons.
3. Retail traders in goods.
4. Business enterprises.
5. Agricultural finance.

6. Consumption loans.
7. Housing Loans.
8. State Sponsored organizations for SCs/STs.
40% of total advances are granted to priority sector.
1. Small Scale Industries

a) Units engaged in manufacturing, processing, preservation of goods and servicing operations,
whose original investment in plant and machinery, whether held on ownership terms or on
lease or by hire purchase (excluding land, building), did not exceed Rs. 60 lakhs, ceiling was
Rs. 1 crore.
b) Small Scale Ancillary units whose original investment in plant and machinery (excluding
land and building) did not exceeding Rs. 75 lakhs, ceiling on investment in ancillary
industrial undertaking to Rs. 1 crore.
c) Service oriented Enterprises* whose investment in plant and machinery, whether held on
ownership terms or on lease or by hire purchase, excluding land and bridling did not exceed
Rs. 5 lakhs located in any area (earlier in rural areas and towns) with a population not
exceeding 5 lakhs only the ceiling was to Rs. 5 lakhs.
Small Scale Service Business Enterprises (SSSBM)

Industry – Related service Business enterprises with investment up to Rs. 10 lakhs in
fixed assets, excluding land and building, are now eligible for benefits as small – scale service/
Business (industry related) Enterprises (SSSBM) as against Rs 5 lakhs.
d) Village / cottage Industries: Artisans engaged in small – industrial activities in village and
small towns having a population not exceeding 50000. No ceiling regarding investment.
e) Indirect Finance to SSI sector also covered.
f) All sick units under rehabilitation..
2. Professional and self employed persons

a) Borrowers should be ‘professional and self-employed’ persons (i.e. doctors, engineers,
lawyers, construction contractors etc.)
The borrowers can be individual or firm or individual partners having identical interests.

b) Borrowing limits should not exceed Rs 5 lakhs (earlier: Rs 2 lakh): both fund- based and
non- fund- based
c) Out of (b), working capital limits (fund- based / non-fund- based) should not exceed Rs. 1
lakhs.
d) No ceiling on original cost of equipment.
e) In the case of professionally qualified medical practitioners setting up practice in semi- urban
and rural areas a higher ceiling of Rs 10 lakhs both fond- based and non- fund- based with a
sub- ceiling of Rs 2 lakhs for working capital requirements (fund- based / non-fund-based has
been fixed).
The above financial ceiling is also applicable in respect of advances granted to a qualified
medical practitioner for purchase of one motor vehicle.
The RBI have recently clarified that loans to doctors who are government employees, are
not eligible for inclusion under priority sector.
Advance granted for purchase of a motor vehicle to professional and self- employed
persons other than qualified medical practitioners are, however, not included under the priority
sector.
3. Business Enterprises
a) Individuals and firms managing business enterprises established mainly for providing any
services other than professional services.
Group of individuals, including a company or a co-operative society are also eligible.
b) Original cost price (and not the depreciated cost) of equipment used for the purpose of
business should not exceed Rs 10 lakh both fund- based and non- fond- based.
c) The aggregate term loan and working capital limits (fund- based and non- fund-based)
sanctioned for a small business enterprise unit should not exceed Rs 10 lakhs
d) Out of (c) working capital limits (both fund based and non-fund-based) should not exceed Rs
5 lakhs including retail traders in mineral oils.
4. Agricultural Finance
a) Both direct and indirect agricultural advances are covered.
b) No specification regarding constitution of the borrower.
c) No ceiling on credit limits and cost of equipment.

5. Consumption Loans
a) Pure consumption loans granted under RBI’s consumption credit scheme (1976) are
eligible.
b) Loans granted for specific purposes and within specific ceilings are covered.
c) Loans should be an integral part of the credit extended for main business or activity of the
borrower.
d) Period of repayment should not exceed 3 years.
6. Housing Loans
a) No specification regarding the construction of borrower.
b) Amount of loan (direct, indirect) should not exceed Rs 5 lakh per unit for new construction,
and Rs. 50000 for repair.
c) Direct housing loans up to Rs 10 lakhs by Banks for construction of houses by individuals in
urban and metropolitan areas are now eligible for inclusion under priority sector.
d) Repayment period should not exceed 15 years.
Only the loans granted to individual for Housingal proposes are eligible.
7. State- sponsored organization For SCs/STs

Only for specific purposes of purchase and supply of inputs and marketing of outputs.
Weaker sections in the priority sector
The weaker section defined by the Ghosh committee in the priority sector comprise of
the following:
i) Small and marginal formers with land holdings of 5 acres and less lard less, laborers
tenant farmers.
ii) Artisans, village and cottage industries*
iii) Artisans irrespective of location of their industry: small industrial activity viz
manufacturing, processing preservation and servicing in villages and small towns with
population not exceeding 50000 and individual credit requirements not exceeding Rs
25000.

iv) Scheduled castes and scheduled tribes beneficiaries.
v) Housing loans up to Rs 5.000 to SC/ST and weaker sections.
The advances to the ‘weaker sections’ should have reached a level of 25% of the priority
sector advances, or 10% of net Bank credit.
Priority sector some important clarifications

Eligible Loans / advances under priority sectors:
 Priority sector Advances: 40% of net Bank credit should be extended to priority sectors.
 Weaker sections: Target 10% of net Banks credit should be made available to weaker
sections.
 Vehicle Loans to Formers: advances granted to formers for purchase of trucks bullock-
carts and other transport equipment's etc (Jeeps, vans mini- Trucks) to be used for transport
of agricultural inputs and form products are classified as agricultural advances is under the
priority sectors.
 Processing Loans: It a former is processing his own, produce before sale, advances granted
to such processing purpose should be treated at agricultural advances. Such loans to farmers
can be classified as agricultural loans.
 Agro – based processing sector: loans to the industries in this sector may be considered as a
separate segment under the priority sector.
 Short Term Loans: to traditional plantation: short term advances to cultivators of traditional
plantation i.e. tea coffee, rubber and spices upto 20 acres were eligible for inclusion under
priority sector.
 Seri-culture advances: advances granted for Seri- culture is also reckoned as agricultural
advances under the priority sector.
 Distribution of inputs: advances uptoRs. 15 lakhs granted for financing distribution of
inputs for indirect finance to agriculture and priority sector.
 SSI Advances: advances to smaller borrowers in the SSI segment:

4.3 Loan Scheme
Happy Home Loan

Purpose
State Bank of Mysore is now at your doorsteps to provide you all good things in life
you have been craving for. You richly deserved them but couldn’t buy them perhaps for want of
ready cash. Here is where State Bank of Mysore steps in to solve your problems and make your
home a ‘Happy Home’. Color TV Sets, VCRs, Refrigerators, Cars, Scooters, Mopeds, Washing
Machines, Mixers / Grinders, Coolers, Air conditioners, Furniture and what have you? All these
goodies brought to you within your reach under State Bank of Mysore’s Happy Homes Scheme.
Highlights of the Scheme

Tailor-made for employees of Govt / Public Sector undertakings, Corporations,
Private Sector Companies, Police, Defense forces and reputed establishments with a minimum of
5 years service. Professionals, Self-employed with a minimum of 5 years standing.
Net monthly salary / income should be Rs.2000/-

75% of the cost of the articles. Maximum loan of Rs. 1.00 lac or eight times the net monthly
income / salary of the borrower whichever is lower.
Repayable in 36 to 60 months.
Minimum loan amount Rs. 10000/-. Demand Loans up to Rs.25000/- payable in 36 months
.Demand Loans above Rs. 25000/- repayable in 36 months Term loans repayable in more than 36
months and up to 60 months.
Simple security needed.
 Hypothecation of assets created (articles bought)
 Third party guarantee acceptable to the Bank if check off facility is not available.
 Insurance Cover
 Vehicles bought to be insured for full value.
 For articles above Rs.10000/- insurance will be for market value or atleast 110% of the loan
amount whichever is higher.

 A small one-time service fee of 1% of the loan amount.
Personal Loans
Eligibility
Individuals, employees of state / central government, Public Sector undertakings,
reputed profit making Public limited companies, Multi national companies with a minimum
service of two years and drawing a net salary of Rs. 6,000/- or above.
Purpose
To meet personal expenses like marriage, family functions, medical expenses, travel etc.,
Loan Amount
Up to Rs. 1.50 lacks depending on repayment capacity of the individuals.
Security
Third party guarantee of equal means. Securities like LIC policies, NSC, KVIP, Shares etc.,
Period of Repayment
12 months to 36 months.
Mortgage Loan
Eligibility
Individuals, employees, professionals, self-employed and others who are income tax
assesse whose net monthly income is of Rs. 12,000/- for salaried persons or net annual income of
Rs. 1,50,000/- in case of others and self-employed.
AGE
Maximum age - 65 years.
Loan Amount
Rs. 1.00 lac to Rs. 50.00 lacks
Security
Equitable mortgage of unencumbered residential house / flat or urban commercial or
industrial property in the name and possession of the borrower, either self acquired or vacant
property. Rented out property will be accepted as security only where lease is in existence in
favour of corporation of good standing and repute. Power of attorney authorizing the Bank to
collect rent should be given.

Margin
50% of the market value of the security.
Car Loan Scheme

Purpose
For the purchase of new passengers Cars, Jeeps, Multi Utility Vehicles (MUV) and
SUVs.
Eligibility
Individuals between the age group of 21 years to 65 years.
Annual Income
Salaried class with an annual income of Rs. 2,50,000/- & above. Self employed&
Professionals with an annual income of Rs.2,50,000/- & above.
Loan amount
For salaried persons: 48 times of the Net Monthly Income
For others: 4 times of the Net Annual Income
The income of the spouse can be included for arriving at the loan amount, provided spouse joins
as co-borrower.
Table 4.1 My Bank Gold Loan Scheme
1 Name of the Product “MYBANK GOLD LOAN SCHEME”

2 Purpose To meet personal expenses like Marriage, Family functions,
Medical expenses, Educational expenses, Travel, etc.,
3 Eligibility Individuals in single name with satisfactorily conducted
accounts with a minimum capacity to service the interest.
4 Loan Account Presently Rs 2000/- per gram of gold pledged with a
Maximum loan amount of Rs. 10.00 lacs
5 Repayment Borrower will have the option of making repayment in one or
more installments/ lump sum of his/her choice with in the
period of 30 months. However periodical interest has to be
serviced by the borrower to avoid the account beoming NPA.
6 Rate of Interest Determined from time to time. Refer interest rates.
7 Processing Fee 0.20% with a minimum of Rs.500/- maximum Rs.1000/-

(inclusive of appraiser charges)
8 Security Pledge of Gold ornaments of 22 carats or Specially minted
Gold Coins sold by Banks, which is kept in the original form.
9 Prepayment Penalty No Pre payment charges.
Commercial and Institutional Banking Schemes

Scheme for Traders-Liberalized Trade Finance
State Bank of Mysore has designed schemes for traders to meet their working capital needs –
under C&I and SME Segment
The following categories of borrowers will be covered:
a. Small business enterprises.
b. Retail traders/ wholesale traders.
c. Professional and Self employed.
Salient features of the scheme

A maximum amount of Rs.500.00 lacks is extended by way of cash credit/ term loan
facility, with margin 35%.
The loan component shall not exceed 90% of the total requirement as worked out or 65% of the
value of the collateral security offered, whichever is less.
Rate of interest
Cash credit – 13.00% i.e. 4.75% above base rate
Term loan – 13.50% i.e. 5.25% above base rate
Limit is available for a period of 12 months renewable annually for cash credit and for term loan
60 months.
The hypothecated stocks and other securities offered are to be insured comprehensively.
Stock statements/ book debt statements to be furnished quarterly in case of loan for inventories
or current assets.
Immovable property of 153% of the loan amount to be mortgaged to the Bank.
No third party guarantee.

Handy Loans Scheme - For Trade and Services sector
Coverage: Metropolitan, Urban & Semi-Urban Branches
Salient features of the scheme:
Type of loan
Term Loan
Amount
Minimum of Rs.2 Lacks and maximum of Rs.25 Lacks
Handy Loan can be availed for :
 Holding stocks / Receivables
 Acquisition of land and buildings for establishing trading house
 Building construction & renovation of offices, showrooms, go downs, etc
 Purchase of equipment, furniture & vehicles
 Augmenting networking capital
 Payment of long term deposits / advances to supplier
 General trade purposes
Eligibility
 Applicants should be engaged in trade, services activities, and have rating of SBM 1 to 4
under Credit Risk Assessment System
 Earned pre-tax profits in the immediately preceding 3 years
 Sales tax registration & relevant business license
Repayment
Repayable between 3 to 5 years
Corporate Loan (Earlier Name: Short Term Corporate Loan)

The Short Term Corporate Loan is essentially in the form of Term Loan for corporates for
certain specific purposes with maturity not exceeding three years
Eligible Purposes
Any genuine commercial purpose in line with the regular business activity of the customer.
Eligibility Criteria
 Corporates/industrial undertakings in the C&I segment, which enjoy a good credit
rating(internal) of B+ or better

 Corporates/industrial undertaking, in the SSI sector, which enjoy “excellent” credit
rating, which have earned profits in the last three years and which have proven track
Repayment Programme
Not more than 3 years. Installments may be monthly/quarterly/ half yearly and may be
equated or otherwise depending on the assessed income generating capacity of the borrowing
undertaking or bullet repayments if the cash accruals so justify.
Pricing of the Loan
Interest applicable to one step higher than the applicable risk rating.
Security
 Where feasible, a first and sole charge on the fixed assets of the undertaking OR a first
charge on fixed assets on paripassu basis with other term lending institutions to be
obtained. Where first charge cannot be taken, for valid reasons a second charge on fixed
assets to be taken
 Personal guarantee of promoter-director

Kisan Gold Card Scheme
Kisan Credit Card Scheme
GraminBhandaranYojana(GBY)
Scheme for Combined Harvesters
Kisan Chakra Scheme
Agriclinics and Agri business centers.
Solar Photo Voltaic Pump sets(SPV) for Irrigations
Scheme for purchase of land for agricultural purposes
Scheme for development of Vanilla
Establishment of Bio-Fertilizer Units
Produce Marketing Loan (PML)
Drip Irrigation
Sprinkler Irrigation
Farm Mechanization- SBM Agri Farm Scheme
SwarnaMitra Scheme

My Krishigen
Scheme for cultivation of Gherkins
Scheme for financing LPG connection in rural areas
Rain water harvesting scheme for SC/ST farmers
Kisan Gold Card Scheme

Purpose
Purchase of Agricultural implements, Bullocks and carts, Land Development, repairs to Farm
machinery and meet the consumption needs of the farmers viz. Education, Marriage etc., other
than purchase of land, construction of farm house, purchase of tractors & accessories.
Eligibility
Farmers having excellent repayment track record of their ACC or ATL A/cfor the past 2 years
irrespective of their land holdings
Kisan Credit Card Scheme

Purpose
To meet the timely Cash Credit and Consumption credit requirements of the farmers
Margin
No separate margin to be insisted.
Eligibility
All farmers
Quantum of loan
Entire crop production requirements for full year is fixed based on operational land
holding, cropping pattern and applicable scale of finance plus 10% towards consumption plus
20%( for the first year only ) towards maintenance as Ancillary to crop production viz.
maintenance of Agri-machinery implements, electricity charges etc.,
Drawing power
Yearly drawing may be fixed based on seasonality in credit requirements, projected cash
flow / repayment , peak level requirement with 10 % enhancement in limits every year for a
period of 5 years.

Repayment
KCC is like revolving cash credit limit valid for 5 years subject to annual review.
Repayment to coincide with harvesting / marketing. Any number of withdrawals and repayment
within the limit allowed and no withdrawal should remain outstanding beyond 12 months.
Credit card
KCC cum Smart card cum debit cards effective for 5 years facilitating year wise
withdrawals & operations in the KCC accounts up to respective limits will be issued to the
farmer borrowers.
Mode of withdrawal
Withdrawal slips and Smart Cards through ATMS.
Other terms
As applicable to Agricultural Advances
Kisan Chakra Scheme

Purpose
Purchase of vehicles viz. two wheelers, four wheelers carriage van, maxicabs, jeep, car,
lorry, truck, etc. for supervising agricultural operations / management of the farm / estate and for
transportation of agricultural produce, inputs, labour etc.
Eligibility
Agriculturists cultivating his own land or engaged in allied activities such as dairy,
poultry, sericulture, fish farming etc.
Persons engaged in production / distribution of agricultural and allied commodities
Quantum of loan
An upper monitoring ceiling of Rs.5 lacs is fixed for the scheme
Margin
15-25% (minimum of 25% for MCVs/ACVs)
Interest
As applicable to ATLs
Repayment
3-5 years in monthly / quarterly / half yearly depending upon income generation

Loans to Micro & Small Enterprises (MSEs)
Eligibility
Any individual / partnership firm / Public or Private Ltd. Companies desirous of
promoting MSEs (Manufacturing sector) with investment in Plant & Machinery not exceeding
Rs. 5 crore and Medium Enterprises with investment in plant & Machinery is above Rs. 5 Crore
and up to Rs. 10 crores.
Security
Primary
i) Assets created out of Bank finance
Collateral
 Obtention of collateral Security exempted
 Up to Rs. 5 lacs
 Over Rs. 5 lacs and up to Rs. 25 lacs, based on good track record and satisfactory
financial position
 Over Rs.25 lacs at the discretion of the Bank
Interest
As per prevailing rates from time to time
Export Finance
 Establishment of Letter of Credit
 Pre-shipment finance
 Post-shipment finance
 Assistance against Duty draw back

Small Business Finance
Retail Trade- Advances to Retail Traders
Eligibility
All types of Retail Traders are eligible. Persons who propose to start retail trade business,
fair price shop, consumer co-operative stores are also eligible for finance
Extent of Finance
Credit limits up to Rs.20 lacs
Rate of Interest
Security
Assets created out of Bank’s finance
Collateral security as per Bank’s norm
Small Business Enterprises

Eligibility
Individuals and firms managing a business enterprise established mainly for the
purpose of providing any service other than professional services.
Extent of Finance
Individual limits for working capital will be fixed depending upon the requirement of
activities pursued. Advances for acquisition, construction, renovation of House Boats and other
tourist accommodation will be financed. Advances for distribution of mineral oils will also be
considered under this category
Rate of Interest
Security
Assets created out of Bank’s finance
Collateral security as per Bank’s discretion

Deposits
Welcome to State Bank of Mysore's Personal Banking
We meet your needs - of an investment of your surplus funds or to park your hard-
earned money, you will find a product just right for you, delivered at a branch close to you.Open
an account with any of our branches and realise the advantage of our vast network. Earn high
interest on fixed deposits,putting your money to work for you with confidence and security.
Interest Rates-Domestic Deposits
New Deposit Schemes

Centenary Liquid Term Deposit
MyBankSuraksha Savings Account
MyBankSuraksha Savings Plus Account
MyBankSuraksha Time Deposit Account
Saral Savings Bank account (No Frills account)
SBM Tax Saver Scheme
Multi Option Deposit Scheme
Savings Bank account
Term Deposits
Reinvestment Deposits
Recurring Deposits
Harsha Deposit
Public Provident Fund Scheme
Savings Bank account

You can open an account with a deposit as low as Rs.500/-(Rs. 1000/- for chequebook
facility and Rs.500/- without chequebook facility) and earn interest at 4% (w.e.f 03/05/2011) per
annum.
Term Deposits
Invest a lumpsum amount for a specific period from 15 days upto 120 months and collect interest
at monthly (discounted), quarterly, half- yearly or yearly intervals.

Reinvestment Deposits
Your investment and interest for the specified period will be paid together at the end of
the term. It gives you the highest yield of interest on your savings taking care of your future
needs like marriage, house construction, children’s higher education, etc., Period can be from 6
months upto 10 years.
Recurring Deposits
Save bit by bit. Spend when the need is big and relax. Minimum monthly instalment is
Rs.100/- and is accepted in multiples of Rs.10/- thereafter. Deposits are accepted from 12 months
to 120 months.
Harsha Deposit
Save with pleasure at your convenience. No penalty on your irregular remittance. You
may enhance your instalmentupto 10 times your initial deposit. An ideal deposit scheme for all,
whose income is flexible and also for the salaried who may have to incur unexpected
expenditure.
4.5 NPA [ Non Performing Assets ]

Meaning
Non Performing Assets means an assets or an account of borrower, which has been
classified by a Bank or financial institution as ‘Sub Standard’, doubtful or loss asset, in
accordance to the direction or guideline on asset classification issued by the Reserve Bank of
India.
In order to move towards international best practices and to ensure greater transparency.
It has been decided to adopt the 90 days overdue norm for identification of NPA from the year
ending March 31st.
Accordingly with effect from march 31 of every year a loan or an advance shall be a Non
Performing Assets where:
 Interest and installment of principal remain overdue for a period of more than 90 days in
respect of a term loan.

 The account remains out of order for a period of more than 90 days in respect to an
overdraft / cash credit [OD/CC].
 The Bill remains overdue for a period of more than 90 days in the cash of bills purchased
and discounted.
 Interest or installment of principal remain overdue for two harvest seasons but for a
period not exceeding two half year in the case of an advance granted for agricultural
purpose.
 Any amount to be received remains overdue for a period of more than 90 days in respect
of other accounts.
Definition
Non Performing Assets can be defined as “a loan where the lender has some doubts or
experiencing difficulties in obtaining repayments and irrespective of the time frame, the outcome
could be a loss of capital”.

Chapter 5
DATA ANALYSIS AND INTERPRETATION

Chapter 5
Analysis and Interpretation
Introduction
The purpose of conducting the survey is to obtain the opinions of the consumers for the
purpose of survey, Questionnaire has been prepared and has administered 50 respondents. The
questionnaires has distributed to the respondents in different area and are requested to fill it and
return to us.
They survey has been successfully carried out and the respondents gave good and
realistic answer to the question. The information collected from the respondents is tabulated
processed and analyzed to get some meaningful inferences. The detailed analysis of data
collected during survey is presented

Table showing the gender of the respondents
Gender No of Respondents Percentages

Male 30 60
Female 20 40
Total 50 100
Source: Field survey
Out of 50 respondents, 60% respondents are male and 40% respondents are female.
The above table shows that 30 respondents are visiting SBM branch Gandhi Bazar
Graph showing the Gender of the respondents

Table 5.1: Table showing Age of the respondents
Age Group Number of Respondents Percentage

Below 30 years 44 88
30 years -40 years 3 6
Total 50 100
From the above table it is interpreted that, out of the total respondents so contacted 88%
of them belongs to age group below 30 years. About 6% of respondents belongs to age group of
30-40 years 4% of respondents belongs to 40-50 years and 2% of respondents belongs to 50-60
years.
Graph No 5.1 Graph showing Age of the respondents

Table 5.2: Table showing Educational qualification of the respondents
Qualification Number of Respondents Percentage

SSLC 1 2
PUC 2 4
Diploma / Degree 5 10
Post Graduation 42 84
If any other 0 0
Total 50 100
From the above table we can final that 2% of the respondents belongs to SSLC
qualification, 4% of the respondents PUC qualification, 10% are Diploma or degree, majority of
the respondents belongs to the post graduation qualification, i.e. 84%.
Graph No 5.2 Graph showing education qualification

Table 5.3: Table showing occupation wise classification
Occupation Number of respondents Parentage.

Student 4 8
Profession 41 82
Business 2 4
If any others 3 6
Total 50 100
In the above table we can conclude that the customers belongs to the student 8%,
majority of the customers belongs to the professional ie 82%, 4% of them belongs to the business
and remaining 6% of them belongs to others occupation.
Graph No. 5.3 Graph showing occupation wise classification

Table 5.4: Table showing the annual income of the respondents
Annual Income Number of Respondents Percentage

Below Rs. 100000 17 34
Rs 100000 to 200000 8 16
Rs 200000 to 300000 10 20
Above Rs. 300000 15 30
Total 50 100
From the above table we final that majority i.e 34% of respondents belongs to the annual income
of below 100000. only 16% of the respondents belongs to 100000 – 200000 annual income, 20%
of the respondents belongs to Rs, 200000 – 300000, and 30 of respondents above income Rs.
300000.
Graph No. 5.4 Graph showing the annual income of the respondents

Table 5.5: Table shows which types of loan do you have
Type of loans Number of respondents Percentage

Short-term loan 20 40
Medium-term loan 10 20
Long-term loan 20 40
Total 50 100
It is clear from the above table 40% of the respondents have taken long-term and short term loan
provided by the Bank and 20% of the respondents have taken medium term loan.
Graph No 5.5 Graph shows the types of loan do you have

Table 5.6: Table showing opinion about the interest charged by the Bank
Opinion Number of respondent Percentage

Low 5 10
High 10 20
Reasonable 25 50
Very High 10 20
Total 50 100
From the above table, we can see that 10% of the respondents say that the interest charged by the
Bank is low. 20% of the respondents say that the interest charged by the Bank is high. 50% of the
respondents say that the interest is Reasonable and 20% of the respondents say that the interest is
very high. From we concluded that the interest charged by the Bank is reasonable.
Graph No. 5.6 Graph showing opinion about interest charged by the Bank

Table 5.7: Table showing purpose of loan taken
Purpose Number of respondents Percentage

Agriculture 15 30
Housing 10 20
SSI 20 40
Others 5 10
Total 50 100
From the above table it is clear that 30% of the respondents have taken agriculture loan.
20% of the respondents have taken housing Loan, 40% of the respondents have taken Small
Scale industries and 10% of the respondents have taken loan for other purpose.
Graph No. 5.7 Graph showing the purpose of loans taken by the customer

Table 5.8: Table showing the customer opinion about the repayment schedule
Opinion Number of respondent Percentage

Satisfied 33 66
Dissatisfied 17 34
Total 50 100
Out of total respondents 66% of the respondents are of the opinion that the repayment schedule is
satisfied and the remaining 34% of the respondents are of the opinion that this is dissatisfied and
they say that they need time to repay the loans.
Graph No. 5.8 Graph showing the customer opinion about the repayment schedule

Table 5.9: Table showing the awareness of the customer towards Bank
Awareness Number of respondent Percentage

Bank interest rate and repayment
16 32
Schedule
Friends and relative 24 48
Advertisement 5 10
Other 5 10
Total 50 100
The above table shows majority i.e. 32% of the awareness of the respondents towards the Bank
interest rate and repayment schedule, 48% of the respondents have opinion that the awareness of
the customers towards the Bank is friends and relatives, 10% of the awareness of the respondents
towards the advertisement and remaining 10% of respondents towards the Bank, as they think as
others.
Graph No. 5.9 Graph showing the awareness of the customer towards Bank

Table 5.10: Table showing the opinion of customers regarding staff
Treatment by the staff Number of respondents Percentage
Satisfied 45 90
Unsatisfied 5 10
Total 50 100
From the above table 90% of the respondents regarding behaviour of the staff of the Bank is
satisfied and only 10% of the respondents regarding is behaviour of the staff the Bank is
unsatisfied.
Graph No. 5.10 Graph showing the opinion of customers regarding staff

Chapter 6
6.1Findings
6.2 Suggestions
6.3 Conclusion

6.1Findings
 Most of the respondents belong to the age group of below 30 years.

 Most of the respondent belongs to the occupation of profession.
 Majority of the respondent’s annual income were below Rs.100000.
 Most of the respondents belong to the qualification of post graduates.
 The majority of respondents are taken the short and long term loan.
 The majority of respondents are said that interest rate was reasonable
 The majority of respondents are taken loan for small scale industries purpose
 The majority of respondents opinion about repayment schedule is satisfied
 Majority of respondents awareness of the customer from friends and relatives.
 The majority of respondents are said that opinion regarding staff was satisfied .

6.2 Suggestions
The following are the suggestions given to the Bank to improve its performance and its
customer services.
1. Some of the respondents complaints that the Bank charged high rate of interest on loans and
advances so, the Bank should reduce the rate of interest at much as possible.
2. Low rate of interest the number respondents loan borrower will increase.
3. Period of repayment of loan should be increased. The Bank should give longer period for
repayment of loans. So, that the customers will not feel burdened. It is responsibility of
Banker to see that customer do not feel that the repayment is risky.
4. Proper Guidance: Banker should provide proper guidance to customers about forms and
document to be submitted for getting loan.
5. Loan Sanctioning: The Banker has to follow simple the loan granting procedure, so, that a
borrower can get the loans as early at possible. This helps the needy borrowers to get the
loan at right time. Loan has to be sanctioned within a shortest period from the date of his
application for loan.
6. The Banks should take necessary steps to advertise the Bank’s new scheme and help to
customers to get these benefits if customers do not know about new schemes there scheme
will become useless scheme.
7. The Bank has to be maintaining up to data records. So, they can provide quick service to the
customers.
8. Amount of loan should be extended according to their housing purpose ex: Doctors,
Engineers etc.

6.3 Conclusion
The development of Banking industry rest on the development of economy. In general it

is much affected by the changes in commercial and financial activities. However Banking and
economical development are inter related the efficiency of Banking business it depends upon the
objects of Banker to collect the deposits advances and loans in economical which bring longer
incomes the strategy of Banker in collection of deposits and financial services continuously
evaluated for improvement purpose. The efficiency of individual Banking is measured in terms
of its ability to serve the needs of the people. In the best possible way ere by the Bank can get
greater incomes and provides and also maintenance satisfaction of the customers.
In order to improve and maintain the best strategy for Banking activities. It is necessary
to collect the opinion of the customer regarding the activities of the Bank to maintain strategy in
such a manner as to make it customer oriented. The present study although basically aimed at
fulfilling the requirements of university has been conducted of the Bank have been in loans and
advances related aspects.

Annexure
 Questionnaire
 Bibliography

Questionnaire
Dear Sir/Madam,
I am studying in final year B.B.M in Government First Grade College, Shivamogga. For the
partial fulfillment of the B.B.M Degree, I have undertaken a project work “A study on loan and
advances of State Bank of Mysore”, with special reference to SBM Branch, Gandhi Bazar,
Shivamogga.
Kindly span some of your valuable time to fill up the following questionnaire. This will help me
to complete my project work successfully. The information given by you will be used for
academic purpose only.
Thanking you
Yours faithfully
(Santhosh Naik .S)
1. Name :
2. Address :
3. Gender :
Male [] Female []
4. Age :
a. Below 30 years [ ]
b. 30 years - 40 years [ ]
c. 40 years -50 years [ ]
d. 50 years – 60 years [ ]
5. Education Qualification :
a. SSLC [ ]
b. PUC [ ]
c. Diploma/degree [ ]
d. P G [ ]

e. If any other please specify ………….
6. Occupation :
a. Student [ ]
b. Professional [ ]
c. Business [ ]
d. If any others please specify ……….
7. Annual income
a. Below . 100000 [ ]
b. . 100000 - . 200000 [ ]
c. . 200000 - . 300000 [ ]
d. Above . 300000 [ ]
8. Area belongs to
a. Rural []
b. Urban []
9. Have you taken any loans and advances from State Bank of Mysore, Gandhi Bazar,
Shivamogga ?
a. Yes [ ] b. No [ ]
10. If yes, which type of loan do you have?
a. Short term loan [ ]
b. Medium term loan[ ]
c. Long term loan [ ]
11. Your opinion about the interest charged by the Bank
a. Low [ ]
b. High [ ]
c. Reasonable [ ]
d. Very High [ ]
12. Which factor promotes you to take a loan from State Bank of Mysore?
a. Bank interest rate and repayment schedule []
b. Advertisement []
c. Friends and relatives []
d. Others []

13. Have you taken any loans under priority sector from State Bank of Mysore?
a. Yes [ ] b. No [ ]
14. If, yes for what purpose have you taken the loan?
a. Agriculture [ ]
b. Housing [ ]
c. Small Scale Industry [ ]
d. If any other please specify ……….
15. Have you ever faced any difficulty during availing the loan from State Bank of Mysore,
Gandhi Bazar branch?
a. Yes [ ] b. No [ ]
16. What type of problem you have faced?
a. No proper responses from the Banks staffs []
b. Problem of document and proof []
c. Delay in processing []
d. If any other please specify ……………………..
17. Are you satisfied with the responses given by the Bank staff?
a. Satisfied [ ] b. Unsatisfied [ ]
18. Does the Bank provides you any relaxation while repaying the loan?
a. Yes [ ] b. No [ ]
19. Which type of relation you have received?
a. Relation in time []
b. Relation in interest rate []
c. Relation in total amount [ ]
d. If any other please specify ………………..
20. Are you satisfied with the Bank loan repayment schedule?
a. Satisfied [ ] b. Dissatisfied [ ]
21. Your valuable suggestions to State Bank of Mysore, Gandhi Bazar, Shivamogga
_____________________________________________
______________________________________________
Date Signature

Place
BIBLIOGRAPHY
Books
Dr. G.B Baligar, “Law and Practice of Banking”, 1st Edition, (2008), Ashok Publication,
B.S.Raman, “Law and Practice of Banking”, 2 Edition,( 2007), Himalaya Publication,
Journals and News papers
Times of India
Economic Times
Indian Express
Website
www.statebankofmysour.com

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A STUDY ON LOAN AND ADVANCES OF STATE

Govt. First Grade College, Shivamogga Page | 1

Govt. First Grade College, Shivamogga Page | 2

Govt. First Grade College, Shivamogga Page | 3

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1.2 Statement of the Problem

1.3 Objectives of the Study

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1.6 Limitations of the Study

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Govt. First Grade College, Shivamogga Page | 7

Govt. First Grade College, Shivamogga Page | 8

State Bank of Mysore was established in the year 1913 as Bank of

Govt. First Grade College, Shivamogga Page | 9

2.2 Financial Profile

Govt. First Grade College, Shivamogga Page | 10

2.3 Mission, Vision & Values

Govt. First Grade College, Shivamogga Page | 11

Govt. First Grade College, Shivamogga Page | 12

08186-44731State Bank Of Mysore (SBM)IFSC Code: SBMY0040240

0818-670342State Bank Of Mysore (SBM)IFSC Code: SBMY0040270

0818-220185State Bank Of Mysore (SBM)IFSC Code: SBMY0040381

Govt. First Grade College, Shivamogga Page | 13

8182-55693State Bank Of Mysore (SBM)IFSC Code: SBMY0040580

0818-250152State Bank Of Mysore (SBM)IFSC Code: SBMY0040664

08182-223400State Bank Of Mysore (SBM)IFSC Code: SBMY0040596

STATE BANK OF MYSORE, REGIONAL OFFICE, REGION-I , HUBLI ZONE, II nd

08182-225021State Bank Of Mysore (SBM)IFSC Code: SBMY0040852

2.5 Products and Services

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 Core Banking Solution

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 Integration with strategic sectors

 Business Process Re-engineering (BPR) enabler

All customers of the Bank

Salient features of the scheme

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National Electronic Funds Transfer (NEFT) System

Charges for NEFT transactions are as listed in the following table

Above Rs 1.00 lac to Rs 2.00 lacsRs15/- per

Govt. First Grade College, Shivamogga Page | 17

Cash Deposit Machine

InterBank Mobile Payment Service (IMPS)

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New Deposit Schemes

Services Provided by SBM

Govt. First Grade College, Shivamogga Page | 19

Govt. First Grade College, Shivamogga Page | 20

ASSETS (Rs. in millions) 31.03.2010 31.03.2011

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Local Head Office

Organization Structure of The SBM

Managing Director – Sharad Sharma

Chief General Manager – kalyanmukarjee

Deputy General Manager - J Ramakrishna

Assistant General Manager

Govt. First Grade College, Shivamogga Page | 22

Govt. First Grade College, Shivamogga Page | 23

3.1 Establishment of the Branch

Govt. First Grade College, Shivamogga Page | 24

3.2 Mission and Vision

Functions of the branch:

Govt. First Grade College, Shivamogga Page | 25