RESEARCH PROJECT REPORT

ON

“STUDY OF LOAN MANAGEMENT WITH SPECIAL EMPHASIS IN PUNJAB & SIND BANK OF BANKING SECTOR LOCATED AT KARNAL ”

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

of

PUNJAB TECHNICAL UNIVERSITY

By

NAVNEET KAUR

1440536

MBA III SEMESTER

UNDER THE SUPERVISION OF

Mrs. Jasminal Kaur

Chandigarh Business School, Landran, Mohali

2014-2016

CONTENTS

Chapter:1…….. Introduction (Industry Profile)

Historical evolution,

Growth rate

Players in industry

Key challenges

Chapter:2……..Company profile

History

Products

Organization structure

Chapter:3…… Research Methodology

3.1…. Literature Review

3.2…. Need of study

3.3…. Objectives of study

3.4…. Research Design

(a) Population

(b) Sample

(c) Sample Size

(d) Sampling Technique

(e) Sampling Unit

(f) Data collection

(g) Scope of study

(h) Technique of analysis

3.5…. Limitations of the study

Chapter: 4…. Data Analysis & Interpretation

Chapter:5…. Findings & Conclusions

Chapter: 6…. Recommendations

Bibliography

Appendix

Questionnaire

CERTIFICATE OF SUPERVISOR

This is to certify that Ms. Navneet Kaur Roll No. 1440536 has completed the research project titled “A study

of loan management with special emphasis in Punjab & Sind Bank” under my supervision in partial

fulfillment of the MASTER OF BUSINESS ADMINISTRATION degree of MBA university’s name

PUNJAB TECHNICAL UNIVERSITY.

Supervisor’s signature:

Supervisor’s name:

Supervisor’s Designation:

Date:

Place:

DECLARATION

I, hereby declare that the research project report titled “A STUDY OF LOANS MANAGEMENT WITH

SPECIAL EMPHASIS ON PUNJAB AND SIND BANK “is my own original research work and this report has

not been submitted to any University/Institute for the award of any professional degree or diploma.

NAVNEET KAUR

MBA (III)

Chandigarh Business School

Date:

Place:

ACKNOWLEDGEMENT

I express my sincere gratitude to Mr. Mukhtiyar Singh (Senior Manager of Punjab & Sind Bank, Ramba) for providing me an opportunity to work on this project. I am very grateful for their constant support and guidance throughout the duration of the entire project. I express my sincere thanks to Dr. Satinderpal Singh and our present summer internship coordinator Mrs. Jasminal Kaur for their guidance and support. I also express my thanks to my friends and family for their encouragement and guidance. Lastly, I thank my parents, family members and friends for their constant support in my endeavor.

Navneet Kaur

ABSTRACT

Research word in management is extremely important as it gives a close and depth view of real life business

issues. For the student pursuing any professional course like business studies who is striving to perform

outstanding it is paramount importance that apart from theoretical knowledge one must also gain practical

knowledge.

The main objective of project report is familiarization with the necessary theoretical inputs and to gain

sufficient practical exposure to establish a distant linkage between the conceptual knowledge acquired at the

college and practicing those concepts.

The project report is concerned with the “Study Of Loan Management With Special Emphasis ” provided by

Punjab & Sind Bank at Ramba ( Karnal). During my tenure of project, I studied the various developments tools

and deeply analyzed the functions.

My objective is to learn about the various schemes which are being implemented by Punjab & Sind

Bank. I had also surveyed various respondents to know their view and suggestions.

CHAPTER 1

INTRODUCTION ( Industry Profile)

HISTORICAL EVALUATION:

INDIAN BANKING SECTOR

Banking in India has its origin as early as the Vedic period. It is believed that the transition from money

lending to banking must have occurred even before Manu, the great Hindu Jurist, who has devoted a section

of his work to deposits and advances and laid down rules relating to rates of interest. During the Mogul period,

the indigenous bankers played a very important role in lending money and financing foreign trade and

commerce. During the days of the East India Company, it was the turn of the agency houses to carry on the

banking business. The General Bank of India was the first Joint Stock Bank to be established in the year 1786.

The others which followed were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustan is

reported to have continued till 1906 while the other two failed in the meantime. In the first half of the 19th

century the East India Company established three banks;

1. Bank of Bengal in 1809

2. Bank of Bombay in 1840, and

3. Bank of Madras in 1843.

These three banks also known as Presidency Banks were independent units and functioned well. These three

banks were amalgamated in 1920 and a new bank The Imperial Bank of India was established on 27th January

1921. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India

was taken over by the newly constituted State Bank of India. The Reserve Bank which is the Central Bank

was created in 1935 by passing Reserve Bank of India Act, 1934. In the wake of the Swadeshi Movement, a

number of banks with Indian management were established in the country namely :Punjab National Bank Ltd,

Bank of India Ltd, Canara Bank Ltd, Indian Bank Ltd, Bank of Baroda Ltd, T he Central Bank of India

Ltd. On July 19, 1969, 14 major banks of the country were nationalised and in 15thApril 1980 six more

Commercial Private Sector Banks were also taken over by government.

The INDIAN BANKING INDUSTRY

The origin of the Indian banking industry may be traced to the establishment of the Bank of Bengal in

Calcutta (now Kolkata) in 1786. Since then, the industry has witnessed substantial growth and radical changes.

As of March 2002, the Indian banking industry consisted of 97 Commercial Banks, 196 Regional Rural Banks,

52 Scheduled Urban Co-operative Banks, and 16 Scheduled State Co-operative Banks. The growth of the

banking industry in India may be studied in terms of two broad phases: Pre Independence (1786-1947), and

Post Independence (1947 till date). The post independence phase may be further divided into three sub-phases:

• Pre-Nationalisation Period (1947-1969)

• Post-Nationalisation Period (1969-1991)

• Post-Liberalisation Period (1991- till date)

The two watershed events in the post independence phase are the nationalisation of banks (1969) and the

initiation of the economic reforms (1991). This section focuses on the evolution of the banking industry in

India post-liberalization.

Banking Sector Reforms - Post- Liberalisation

In 1991, the Government of India (GOI) set up a committee under the chairmanship of Mr.

Narasimaham to make an assessment of the banking sector. The report of this committee contained

recommendations that formed the basis of the reforms initiated in 1991.

The banking sector reforms had the following objectives:

1. Improving the macroeconomic policy framework within which banks operate;

2. Introducing prudential norms;

3. Improving the financial health and competitive position of banks;

4. Building the financial infrastructure relating to supervision, audit technology and legal

framework; and

5. Improving the level of managerial competence and quality of human resources.

GROWTH RATE

Growth in relation to a banking organization relates to increase in the business over a period of time. Year to

year growth is calculated and targets are fixed to evaluate the performance and standing of the bank in relation

to industry, in relation to competitors, in relation to branch. Growth means the increase in advances and deposits

of a bank in current year in comparison to previous year, Growth also means the increase in revenue profits,

earning of the Bank in comparison to previous year. It also evaluates the increase in business per employee of

the bank in comparison to the previous year. Operating profits, net profits, earning per share, dividend per share,

return on capital employed, return on equity. Interest coverage ratios are the other yardsticks to measure the

growth of a business entity over a period of time. Profit maximization and wealth maximization are the ultimate

goals of an organization because it leads to the growth of the organization to a large extent. As regards Growth,

it can be studied from various angles like in terms of sales, net profit, reserve and surplus, earning per share,

internal growth & sustainable growth. As a matter of fact, the desired growth rate and the debt financing both

are interrelated. The higher the growth rate, the greater would be the need for external financing if other things

remaining the same or vice-versa. Balanced Debt equity mix and its relationship with growth may better be

studied in terms of net assets growth, fixed assets growth, net profit growth, revenue growth, reserves & surplus

growth and earnings per share growth.

MANAGEMENT – PUNJAB & SIND BANK

Name Designation

Jatinderbir Singh Chairman & Managing Director

S R Mehar Director

Mahesh Kumar Gupta Director

Anita Karnavar Director

Sukhen Pal Babuta Director

Mukesh Kumar Jain Executive Director

Pradipta K Jena Director

Sanjay Verma Director

M S Sarang Director

KEY CHALLENGES

Cyber crime

Effecting cultural change

More stress testing

Dealing with heightened regulatory scrutiny

Facing another economic downturn

CHAPTER 2

INTRODUCTION (company Profile)

PUNJAB & SIND BANK

INTRODUCTION

Punjab & Sind Bank (P&SB) is a government-owned bank (79.62%), with headquarters in New Delhi. Of its 1466 branches spread throughout India, 623 branches are in Punjab state. Its net profit is Rs. 121.35 crores and net NPA is 3.55% for the year ending 2014-15. The banks operating profit for the year ending 2014-15 is 775.45 crores. Total business of the bank was 1,51,511 crores for the year ending 2014-15 and Business per employee is 15.95 crore. The net worth of the bank as on 31.03.15 is Rs. 4812 crore.

HISTORY

It was in the year 1908, when a humble idea to uplift the poorest of poor of the land culminated in the birth of Punjab & Sind Bank with the far-sighted vision of luminaries like Bhai Vir Singh, Sir Sunder Singh Majitha and Sardar Tarlochan Singh. They enjoyed the highest respect with the people of Punjab.

The bank was founded on the principle of social commitment to help the weaker section of the society in their economic endeavours to raise their standard of life. Decades have gone by, even today Punjab & Sind Bank stands committed to honor the social commitments of the founding fathers.

On 15 April 1980 Punjab & Sind Bank was among six banks that the Government of India nationalized in the second wave of nationalizations. (The first wave had been in 1969 when the government nationalized the top 14 banks.)

In the 1960s Punjab & Sind Bank established a branch in London. In 1991 Bank of Baroda acquired Punjab & Sind Bank's London branch at the behest of the Reserve Bank of India following Punjab & Sind's involvement in the Sethia fraud in 1987.

Since 2004 Punjab & Sind has shown growth of over 40% year on year, and its recent IPO was oversubscribed by more than 50 times. Recently the bank crossed a mark of Rs 1 lac crore in business.

Setluj Gramin Bank is a Regional Rural Bank sponsored by Punjab & Sind Bank.

CORPORATE VISION OF THE BANK:

To emerge as a techno savvy vibrant Public Sector Bank with Pan India presence aspiring to meet expectations of all stake holders

THE MISSION STATEMENT OF THE BANK: 

To provide excellent customer service through innovative products and services for different segments of customers using state of the art technology.

To dedicate ourselves wholeheartedly for “Sarva Jana Hitai Sarva Jana Sukhai”

FINANCIAL PERFORMANCE

# Particulars FY 2014-15 FY 2013-14

A Deposits (' INR crores) 86,714.71 84,730.16

B Advances (' INR crores) 64,796.42 57,857.74

C Total Business (A+B) (' INR crores)

1,51,511 1,42,588

D Total Assets (' INR crores) 97,753.40 94,509.15

E Operating Profit (' INR crores) 775.45 800.54

F Net Profit(' INR crores) 121.35 300.63

G Business/Employee (' INR crores) 15.95 15.31

H Net Interest Margin (NIM) (%) 1.80 1.88

I Return on assets (%)0.13 0.35

J Gross NPAs (%) 4.76 4.41

K

Net NPAs (%)

3.55 3.35

L Total Branches 1456 1330

M Total ATM's 1268 1008

PRODUCTS :

Delivery Channel Based Products of Bank

Debit Card ATM Internet Banking Mobile Banking SMS Banking

2.3ORGANISATION STRUCTURE

TOPIC OF RESEARCH

LOAN

In finance, a loan is a debt provided by one entity (organization or individual) to another entity at an interest rate, and evidenced by  which specifies, among other things, the principal amount, interest rate, and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower.

In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time.

The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent.

Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.

PUNJAB & SIND BANK PROVIDING THESE LOAN SCHEMES

Punjab and Sind Bank loans have been innovatively designed to meet a variety of needs of the customers. All the loan products launched by Punjab and Sind Bank boast attractive interest rates and convenient repayment terms to fit the budgets of the borrowers. Given below are the different types of loan programs and advances offered by Punjab and Sind Bank: 

Priority Sector Advances 

The priority sector advances offered by Punjab and Sind Bank can be categorized into the following types: 

P&SB Policy for financing of Small and Medium Enterprises (SMEs) P&SB Kisan Credit Card Schemes P&SB Scheme for financing of old tractors P&SB tractor finance and tractor welfare fund scheme P&SB scheme for financing farmers for buying land for agricultural purpose P&SB drip irrigation scheme P&SB scheme for financing of commission agents/aahrtias P&SB scheme for financing of two wheelers to farmers Scheme for financing Self Help Groups (SHGS) P&SB scheme for financing of combine harvesters P&SB scheme for financing handicapped loan assistance scheme for agricultural operations P&SB Kheti Udyog Khazana Yojana (KUKY) P&SB Scheme for eco-hatchery for carp seed production and extension services P&SB Scheme for vermi - compositing unit P&SB Scheme for plant protection service centre P&SB Scheme for soil water quality and inputs testing laboratory services centre P&SB Scheme for agro service centre - agricultural machinery/equipments and primary processing P&SB Scheme for horticulture clinic and business centre

P&SB Scheme for private veterinary clinic with small dairy unit P&SB Scheme for agro service centre-farm machinery P&SB Scheme for private veterinary clinic with retail outlet for feed & medicine P&SB Scheme for private artificial insemination centre

Housing Loan 

Housing loan schemes from Punjab and Sind Bank are ideal financing options for purchasing plots, construction/purchase of properties and other purposes. 

Conveyance financing 

Conveyance financing schemes of Punjab and Sind Bank are meant for purchasing automobiles under the most suitable terms and conditions. You can use it for purchasing either a new or old car. 

Consumer loans 

Consumer loans from Punjab and Sind Bank help you finance purchase of consumer durables. 

Personal loans 

Personal loans offered by Punjab and Sind Bank are good financing options to fulfill any valid financial need such as healthcare costs, wedding expenses, higher education, household needs or a holiday trip. 

Education loans 

Education finance schemes offered by Punjab and Sind Bank are perfectly designed to finance higher educational programs for students in India and abroad. 

Other loans 

Besides the abovementioned loans, Punjab and Sind Bank also offers some other types of loan programs which include the following: 

P&SB scheme for eating joints P&SB loan scheme for skill enhancement and education of construction workers P&SB artisan credit card (ACC) scheme P&SB special scheme for insurance agents P&SB Diamond Krishi Card P&SB Udyogini Scheme P&SB scheme for working capital requirement for Retail traders P&S Bank special scheme for loan against rent receivables P&S Bank special scheme for doctors

I select two loan in which I study that is following…….

EDUCATION LOAN HOUSING LOAN

EDUCATION LOAN

Objective of the scheme: The educational loan scheme aims at providing financial support from the banking system to deserving and meritorious students for pursuing higher education in India and abroad. The main emphasis is that every meritorious student though poor is provided with an opportunity to pursue education with the financial support from the banking system with affordable terms and conditions. No deserving student is denied an opportunity to pursue higher education for want of financial support.

 

 PROCEDURE

Eligibility

A)      For  Vocational Education:Vocational/Skill development courses of duration from 2 months to 3 years run or supported by:A ministry/Department//Organization of the Government or a company/society/organization supported by National Skill Development Corporation or State Skill Mission/State Skill Corporations, preferably leading to a certificate/diploma/degree etc. issued by the Govt. Organization or an organization recognized/authorized by the government to do so. State Level Bankers Committee (SLBC) may add other skill development courses/programmes,having good employability.B)    For Higher Studies in India and Abroad:

(a)    Studies in India: (Indicative list)·         Approved courses leading to graduate/ post graduate degree and P G diplomas conducted by recognized colleges/ universities recognized by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc.·         Courses like ICWA, CA, CFA etc.·         Courses conducted by IIMs, IITs, IISc, XLRI. NIFT,NID etc.·         Regular Degree/Diploma courses like Aeronautical, pilot training, shipping, nursing or any other discipline, approved  by Director General of Civil Aviation/Shipping/Indian Nursing Council or any other  regulatory body as the case may be, if the course is pursued in India.·         Approved courses offered in India by reputed foreign universities.

Note: The above list is indicative in nature. Courses other than the above offered by reputed institutions may also be considered on the basis of employability.

(b)     Studies abroad:-·         Graduation : For job oriented professional/ technical courses offered by reputed   universities·         Post graduation:  MCA, MBA, MS, etc.·         Courses conducted by CIMA- London, CPA in USA etc.·         Degree/diploma courses like aeronautical, pilot training, shipping etc provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.

Quantum of Finance

A)      For vocational Education:·         For Courses of duration upto 3 months                     :    Rs. 20,000/-·         For Courses of duration 3 to 6 months                      :    Rs. 50,000/-·         For Courses of duration 6 months to 1 year              :    Rs.  75,000/-·         For Courses of duration above 1 year                       :     Rs. 1,50,000/-B)      For Higher Education in India and Abroad·  Studies in India                   : Maximum upto Rs. 10 lakhs.·       Studies Abroad                : Maximum upto Rs. 20 lakhs.

Margin·         Upto  Rs.   4 lakhs               :    Nil (including vocational studies)·         Above  Rs. 4 lakhs              :    Studies in India          5%             :    Studies in Abroad     15%

Processing fee

A)      For vocational Education: NilB)      For Higher Education in India and Abroad: Nil. However, for students studying abroad, refundable security of Rs. 2000/- in lieu of processing fee, in Saving account, to be kept under reserve.

Security

A)      In case of vocational education: No Security( Parents to be joint borrower)B)      In case of Higher Education in India & Abroad          Upto Rs.  4 lakhs: NO Security( Parents to be joint borrowers).   Above  Rs.  4 lakhs and upto Rs. 7.5 lakhsi)   Parents to be joint borrowerii)  Collateral security in the form of suitable third party guarantee     Above  Rs. 7.5 lakhs      i) Parent(s) to be joint borrower(s) ii) Tangible collateral security of suitable value acceptable to bank, along with the assignment of future income of the student for payment of installments

Repayment

a)       For Vocational Courses: Loans upto  Rs. 50,000/- :Upto 2 years                                     Loans between Rs. 50,000/- to   Rs. 1.00 lac  : 2 to 5 years Loans above Rs. 1.00 lac     : 3 to 7 years b)       For Education loan scheme for pursuing Higher Education in India & Abroad:· For loans upto Rs. 7.5 lakhs  : upto 10 years · For loans above Rs. 7.5 lakhs      : upto  15 years

INTEREST RATE

a) For higher studies in India & abroad

CategoryLoan up to Rs.4 Lac Loan Above Rs.4 Lac & up to

Rs.10 LacAbove Rs.10 Lac

General Public BR (10.25%) +3.00%= 13.25%

BR (10.25%)+3.50%= 13.75% BR (10.25%)+4.25%= 14.50%

Staff as Co-Borrower

BR (10.25%)+2.00%= 12.25% BR (10.25%)+2.50%= 12.75% BR (10.25%)+3.25%= 13.50%

Additional concession of 0.50% for girl students Additional concession @1% to all borrowers on account of service of interest during moratorium period.

*All the concessions are subject to charging of minimum of base rate of the Bank. 

b)  For vocational Education

Documents Required:

Category Rate of Interest (p.a.)General Public BR (10.00%) + 3.00% =

13.00%Staff as Co-Borrower BR (10.00%) + 2.00% =

12.00%

✓ Letter of admission✓ Completely filled in Loan Application Form✓ 2 passport size photographs✓ Statement of cost of study✓ PAN Card of the student and Parent/ Guardian✓ AADHAR Card of the student and Parent/ Guardian✓ Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)✓ Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)✓ Student/Co-borrower/ guarantor’s bank account statement for last 6 months✓ IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)✓ Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower✓ Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

HOUSING LOAN

A home loan is a secured loan wherein a bank or a financial institution lends you money to help you purchase your dream home. It is generally given for a longer duration compared to other loan types because the amount borrowed is usually higher and requires a longer repayment plan.

PROCEDURE

Purpose For Construction/ Acquisition/ Purchase/ Extension/ Repair / Renovation

Eligibility Individuals, Group of individuals, and individual members of housing societies are eligible under the scheme

Age Minimum: 18 years  Maximum: subject to maximum age for repayment period

Quantum of Finance

i)   For construction of house or purchase of house/ flat/ Plot: Need based finance, with no Maximum limitii)  For repairs / renovation / additions / alterations: Maximum Rs. 20.00 lac.

Margin

i) For Purchase of Plot only, offered / allotted by Govt. authorities and/ or Builders who are Bank’s borrowers:a) 25% of the Cost of plot up to a finance amount of Rs.100 lac upfrontb) 40% of the Cost of plot for the finance amount over and above Rs.100 lac upfrontii) For Construction or for Purchase of Plot & Construction:a)       For purchase of plot: 40% of the cost of land / plot upfrontb)       For construction:

         10% of the value of construction, proportionate for loans up to Rs. 20 lacs

         20% of the value of construction, proportionate for loans above Rs. 20 lacs & upto Rs 75 lacs.

         25% of the value of construction, proportionate for loans above Rs. 75 lacs

(loan amt. for ascertaining margin would be after clubbing both the loans i.e. for plot + for construction)

iii)  For Purchase of Built up dwelling unit:         10%  of the total value of property for loans up to Rs. 20 lacs up-front         20%  of the total value of property for loans above Rs. 20 lacs & up

to Rs. 75 lacs up-front         25%  of the total value of property for loans above Rs. 75 lacs up-front

iv)  For Extension / Renovation /Repair:10% of the total estimated cost, proportionate for loans up to Rs. 20 lacsv)    For Purchase of Flat from Society/ Builder:

         10%of the total value of property, proportionate for loans up to Rs. 20 lacs

         20%of the total value of property, proportionate for loans above Rs. 20 lacs & up to Rs. 75 lacs

         25%of the total value of property, proportionate for loans above Rs. 75 lacs

i) For Purchase of Plot only, offered / allotted by Govt. authorities and/ or Builders who are Bank’s borrowers:a) 25% of the Cost of plot up to a finance amount of Rs.100 lac upfrontb) 40% of the Cost of plot for the finance amount over and above Rs.100 lac upfrontii) For Construction or for Purchase of Plot & Construction:a)       For purchase of plot: 40% of the cost of land / plot upfrontb)       For construction:

         10% of the value of construction, proportionate for loans up to Rs. 20 lacs         20% of the value of construction, proportionate for loans above Rs.

20 lacs & upto Rs 75 lacs.          25% of the value of construction, proportionate for loans above Rs. 75 lacs

(loan amt. for ascertaining margin would be after clubbing both the loans i.e. for plot + for construction)

iii)  For Purchase of Built up dwelling unit:         10%  of the total value of property for loans up to Rs. 20 lacs up-front         20%  of the total value of property for loans above Rs. 20 lacs & up to Rs. 75 lacs up-

front         25%  of the total value of property for loans above Rs. 75 lacs up-front

iv)  For Extension / Renovation /Repair:10% of the total estimated cost, proportionate for loans up to Rs. 20 lacsv)    For Purchase of Flat from Society/ Builder:

         10%of the total value of property, proportionate for loans up to Rs. 20 lacs         20%of the total value of property, proportionate for loans above Rs. 20 lacs & up to Rs.

75 lacs         25%of the total value of property, proportionate for loans above Rs. 75 lacs

Loans upto Rs. 25 Lac                       :  0.15% on the loan amount, subject to minimum     of Rs. 1000/- and  maximum of Rs. 3000/-                                Loans > Rs. 25 Lac < Rs. 50 lac        : 0.25% subject to maximum of Rs. 10000/-Loans > Rs. 50 Lac < Rs. 75 lac        : 0.25% subject to maximum of Rs. 15000/-Loans = Rs. 75 Lac & above             : 0.25%Actual Stamp/Revenue expenses only.(i) The security for the loan shall be first charge by way of equitable / registered mortgage of the property. The title of the property must be clear, marketable and free from encumbrance.ii) If an intending borrower who has purchased / has entered into an agreement to buy housing property on power of attorney basis offers sufficient collateral in the shape of equitable mortgage of any other property and / or Govt. Security (ies), the same may be considered and the property / security obtained at the time of sanction may be released after obtaining the equitable mortgage of Housing property financed which shall remain the primary security for the loan. During the intervening period the property financed by the bank shall remain charged to the bank.For purchase of plot: The loan shall be allowed only in the shape of term loan for a maximum tenor of 15 years.For Extension / Renovation /Repair: The loan shall be allowed only in the shape of term loan for a maximum tenor of 15 years. For purchase of built up house/construction etc: The loan is allowed only in the shape of term loans for a maximum tenor of40 years ascertaining that the present age plus tenure of loan not to exceed the following age criteria:A For salaried class (non pensionable) Loan to be adjusted upto the age of 60 yearsB For salaried class(pensionable) Loan to be adjusted upto the age of 70 yearsC For other than salaried class Loan to be adjusted upto the age of 70 years 

Take Home Salary/Income 

The amount of installment and repayment schedule to be fixed in such a manner so that the borrower gets the carry home salary/income, of his/ her total emoluments/earnings after the deductions, inter-alia, on account of installment of housing loan, as under:

Income Upto Rs. 10 lacs p.a. 40%Income above Rs. 10 lacs to Rs. 25 lacs p.a. 30%

Income above Rs. 25 lacs p.a. 20%

Prepayment No pre-payment charges. 

  (i)   In case of Co-borrower: Third Party Guarantee may be waived.

 Guarantee

(ii)  In all other cases: guarantee of spouse or Major son may be obtained, if available(iii) In cases, where sale deed/ lease deed/conveyance deed is to be registered after a considerable gap like in cases of Installment/construction linked plan e.g. Authority/ Society/ Builder’s flats/plots: Guarantee of earning spouse/ major son or suitable third party guarantee must be obtained.     

Characteristics

It is a secured loan, that is, the lender considers your house/property as a security collateral. If you fail to pay back the loan, then the lender will become entitled to retrieve the money lent by selling your house/property.

The loan amount can vary, with the minimum amount being Rs. 50,000. The repayment time period for a home loan is fixed and ranges from 5 years to 30 years. The Equated Monthly Installment (EMI) of a home loan is computed by adding the principal amount and

interest. Home loan includes such charges as registration charge, processing fee, penalty on prepayment, commitment

charge and miscellaneous charges (documentation/consultation).

Types

There is a home loan for every requirement, take a look:

Home Purchase Loans: Avail these when buying a new home Land Purchase Loans: Choose them when you buy property for either investment or construction purposes Home Construction Loans: Opt for a home construction loan, if you plan to build a house over an already

owned land. Home Improvement Loans: Avail these when you are about to start a home repair or renovation project Home Conversion Loans: Transfer your existing home loan into a new loan amount by availing a home

conversion loan when you wish to buy a new house but already have a home loan over an existing property Home Extension Loans: Opt for this loan type when you plan to extend your existing home Bridge Loans: Opt for a bridge loan when you plan to buy a new house while looking for the right buyer to

sell off your already existing home

INTEREST RATE

Loan AmountRate of Interest (p.a.)

Upto Rs.30.00 lacs 10.50%

Above Rs.30.00  lacs & upto Rs.75.00 lacs 10.75%

Above Rs.75.00 lacs 11.00%

DOCUMENT REQUIRED

Duly signed and filled application form Passport-size photograph Statements of investments, if any Copy of plan approved for the proposed construction/extension Cost estimation or valuation report from the bank's (or finance company's) panel CA Allotment letter of housing board/NOC of the society/builder etc. Bank statement and salary slips

In addition to these, you will have to also submit the following documents:

Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.

Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.

Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy

CHAPTER 3

RESEARCH METHODOLOGY

3.1 Review of Literature

This research study was an attempt made to study the determinants of diversification of banks in India and to analyze the loan with special emphasis of banks over the period of 2007 to 2013. The study covered nationalized banks, SBI and associates, new private sector banks and foreign banks. Profitability ratios were found out to examine the financial performance of banks. It was found out that though the interest income is still a major source of income in the operations of banks in India, but the phenomenon of non-interest income is acquiring added significance in the wake of declined interest margins and increased disintermediation in commercial banking. The study suggested that banks should concentrate more on 50 providing better, faster and more efficient customer service to permit banks to charge higher rates for better and faster service

➢ In august 2001 James B. Thomson and Ben R. Craig had studied about the Banks who are providing home loans, personal loans and car laons Lending to Community Banks are Targeted Subsidies Necessary? The Gramm-Leach-Bliley Act of 1999 amended the lending authority of the Federal Home Loans, personal loan and car loan Banks to include advances secured by small enterprise loans of community financial institutions. Three possible reasons for the extension of this selective credit subsidy to community banks and thrifts are examined, including the need to: subsidize community depository institutions, stabilize the Federal Home Loan, personal loan and car loan Banks, and address a market failure in rural markets for small enterprise loans. 

➢ In December 2006 Fulbag Singh and Reema Sharma had studied about the housing Finance personal and car finance in India. Housing, as one of the three basic needs of life, always remains on the top priority of any person, economy, government and society at large.  Where as the personal is to fulfill some personal need.➢ In May 18, 2007 Michael LaCour-Little had studied about the Economic Factors Affecting Home Mortgage Disclosure Act Reporting. The public release of the 2004-2005 Home Mortgage Disclosure Act data raised a number of questions given the increase in the number and percentage of higher-priced home mortgage loans and continued differentials across demographic groups. Three possible explanations for the observed increase in 2005 over 2004: (1) changes in lender business practices; (2) changes in the risk profile of borrowers; and (3) changes in the yield curve environment. ➢ In may 2013 MANAH CHANDRA CHANGMAI, Singapore had studied home loan in India. When he had put the request for home loan, he did get a quick response from AXIS bank. Within 2-3 days, he had sent the scanned copies of documents as well as through courier. There was a proper follow up which was there. Processing fees was 5000 with a interest rate of 10%. Initially, AXIS bank contacted first, hence he went with this bank➢ In may2000 Stephen F. Borde had studied about the “Is the Savings and Loan Industry Facing Extinction?” This article tells about the saving and loan crisis. Proposed solutions are discussed in the context of the industry as it currently stands. With a somewhat similar liability structure to that of banks (mainly short-term deposits), the asset structure of S&Ls is quite different. Whereas banks assets consist of short-term loans, S&L assets consist largely of long-term loans, such as home ownership mortgages, some for personal things. Therefore, in the absence of adequate hedging measures, S&Ls are more vulnerable to interest rate risk, which can lead to lower profits when interest rates rise. ➢ In June 29, 2001 Joshua Rosner had studied about the Housing in the New Millennium: A Home without Equity is Just a Rental with Debt. They studied about the prospects of the U.S. housing/mortgage sector over the next several years. Based on our analysis, we believe there are elements in place for the housing sector to continue to experience growth well above GDP. However, we believe there are risks that can materially distort the growth prospects of the sector. Specifically, it appears that a large portion of the housing sector's growth in the 1990's came from the easing of the credit underwriting process. ➢ In dec 2002 Melissa B. Jacoby had studied about the Home Ownership Risk beyond a Subprime Crisis: The Role of Delinquency Management. They studied that Public investment in and promotion of homeownership

and the home mortgage market often relies on three justifications to supplement shelter goals: to build household wealth and economic self-sufficiency, to generate positive social-psychological states, and to develop stable neighborhoods and communities. Homeownership and mortgage obligations do not inherently further these objectives, however, and sometimes undermine them. The most visible triggers of the recent surge in subprime delinquency have produced calls for emergency foreclosure avoidance interventions (as well as front-end regulatory fixes). Whatever their merit, I contend that a system of mortgage delinquency management should be an enduring component of housing policy. Furtherance of housing and household policy objectives hinges in part on the conditions under which homeownership is obtained, maintained, leveraged, and - in some situations - exited.➢ In 2000 Yoko Moriizumi had studied about the Current Wealth, Housing Purchase and Private Housing Loan Demand in Japan. Japanese households accumulate wealth for downpayments at a high rate. Therefore, current wealth plays an important role in home acquisition as public loans whose direct mortgage lending is a strong support for home purchasers. We estimate the wealth effect on private mortgage debt as well as housing consumption by applying a model where mortgage debt demand is derived from house purchase decisions and is determined jointly with housing consumption. We use a simultaneous equation Tobit estimation method. Wealth effects on private mortgage debt, likelihood of borrowing, and housing consumption are not elastic. On the other hand, a change in housing consumption affects the likelihood of borrowing elastically much more than the private mortgage amount of borrowers. Housing and private mortgage markets fluctuate very closely with the number of participants in the mortgage market. Therefore, the number of housing starts is linked strongly to the private mortgage market. ➢ Robert B. Avery and Allen N. Berger had studied about the Loan commitments and bank risk exposure. They studied about the Loan commitments increase a bank's risk by obligating it to issue future loans under terms that it might otherwise refuse. However, moral hazard and adverse selection problems ➢ Sumit Agarwal,Souphala Chomsisengphet and John C. Driscoll had studied about the Loan commitments and private firms. They studied that, Most loans are in the form of credit lines. Empirical studies of line demand have been complicated by their use of data on publicly traded firms, which have a wide menu of financing options. We avoid this problem by using a unique proprietary data set from a large financial institution of loan commitments made to 712 privately-held firms. We test Martin and Santomero's model, in which lines give firms the speed and flexibility to pursue investment opportunities. Our findings are consistent with their predictions. Firms facing higher rates and fees have smaller credit lines. Firms with higher growth commit to larger lines of credit and have a higher rate of line utilization. Firms experiencing more uncertainty in their funding needs commit to smaller credit lines. Almost all firms convert unused credit line portions into spot loans and take out new lines.

3.2 Need of Study

The educational loan scheme aims at providing financial support from the banking system to deserving and / meritorious students for pursuing higher education in India and abroad. The main emphasis is that every meritorious student though poor is provided with an opportunity to pursue education with the financial support from the banking system with affordable terms and conditions. . And a home loan is a secured loan wherein a bank or a financial institution lends you money to help you purchase your dream home. It is generally given for a longer duration compared to other loan types because the amount borrowed is usually higher and requires a longer repayment plan.

Here we conduct a research to know about how Punjab & Sind Bank provide loan scheme with benefits. How much customer are satisfied from Punjab & Sind Bank services.

3.3 Objective of Study

The objective of the making report is:

To study the loans of Punjab & Sind Bank

To study the process of these loans To study the customer’s preferences to particular loan. To recommend the suggestions

3.4 Research Design

A research design is like arrangement of conditions for collections & analysis of data in a manual that aims to combine relevance to the research purpose with economy in procedures.

A research design is purely & simply the framework of plans for a study that guides the collections & analysis of data the research design is the conceptual structure within which the research is conducted. It constitutes the blue print for the collection, measurement & analysis of the data.

The research design with help to answer the following questions :

Why the study is being made ?

From where the data needed can be collected ?

What time is required for the study to be competed & how much material is needed.

What will be the technique for data collections?

How the data can be analyzed?

How the answers to above questions can be found with minimum efforts, time & money?

Types of Research Design

Exploratory Research Design

These designs are the first step to start any research & are absolutely essential to obtain the proper definition of the problem. It helps in classifying the concepts of the study. The major emphasis is the discovery of ideas and insights by study the available information.

Descriptive Research Design

These are concerned with describing the characteristics of a particulars phenomenon in detail the descriptive study requires a clear specifications of who, what, when, where, why & how aspects of research.

The methodology of my study involved descriptive research method.

(a) Population

A population is generally a large collection of individuals or objects that is the main focus of a scientific query.

(b) Sample DesignThe stratified sampling technique was used for collecting information in this technique population is divided

into stratas (homogenous group) and then sample is obtained from each group by simple random method.

Somewhere convenient sampling was also used where the sample is selected on the basis of convenience.

Bank Consulted:

Name of bank - Punjab & Sind Bank

No of persons consulted - 50

Respondents Included:

PSB staff, customers, persons from Ramba (Karnal).

Respondents belong to different Professions Chartered Accountant

Lecturers & Teachers

Doctors

Others

(c) Sample Size

The number of respondents are 50. Respondents are from different professions and with different professions.

(d) Sampling Technique

The sampling technique used is descriptive type of study.

Descriptive Research Design These are concerned with describing the characteristics of a particulars phenomenon in detail the descriptive

study requires a clear specifications of who, what, when, where, why & how aspects of research.

(e) Sampling Unit

The elementary units or the group or cluster of such units may form the basis of sampling process in which case they are called as sampling units. Sampling unit is five years data from annual report of Punjab & Sind Bank.

(f) Data Collection

Two types of data collection methods are used.

Primary sources of data collection:

Primary data are those which are collected afresh & for the first time, & this happens to be original in character. Simple well drafted questionnaire was circulated among all respondents. Full freedom was provided to an individual to answer the questions.

Personal & Telephonic Interviews, observation, personal opinion & viewpoints of the respondents about the various schemes helped in completion of the project.

Secondary sources of data collection:

These are those which are collected by someone else & which have been passed through statically process.

Brochures, Manuals, Journals, Magazines, Site of PSB Bank and various Articles provided lot many inputs for

successful completion of project .

(g) Scope of study The scope of the study is limited to various aspect of bank containing further sub-aspects, which are e-banking (mobile banking, tele-banking, anywhere banking) deposit schemes

(h) Tools and Techniques used for Analysis

1.Tables and graphs

2. Pie charts

3.Mirosoft Excel and Word

3.5 Limitations of the Study

Due to constraints of time & resources the present study is likely to suffer from certain limitations some of these are mentioned so that study can be understood in a proper respective :

Area covered under the report is sample size was very small.

The research was carried out in a short period of 7-8 weeks as a part of summer training. Some of the

respondents of the survey were unwilling to give information.

Sometimes wrong information was provided by respondents which needed to be cross checked &

verified.

Chances of biasness are there because of the use of convenient sampling.

Some respondents were not available and thus needed data could not be found

CHAPTER-5

DATA ANALYSIS AND INTERPRETATION

Q1: Table showing the respondents educational qualification.

Table No.1

Sl. No. Educational Qualification No. of respondents Percentage (%)

1. Under Graduates 10 20

2. Graduates 16 32

3. Post Graduates 4 8

4. Others 20 40

Total 50 100

Graph No. 1

Graph showing the respondents educational qualification.

Under Graduates Graduates Post Graduates Others0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

20%

32%

8%

40%

Educational Qualification

Interpretation: The above table shows that, out of total respondents 40% of them lies under Others category, 32% of them lies under Graduates category, 20% of them are Under graduates and 8% of them are Post graduates.

Conclusion: It can be easily inferred that the majority of respondents comes under Other educational group. Among all the respondents 40%(majority) of them falls under Others category and 8%(minority) of them falls under Post Graduate category.

Q2: Table showing number of respondents on the basis of occupation.

Table No. 2

Sl. No. Occupation No. of respondents Percentage (%)

1. Salaried 21 42

2. Retired 10 20

3. Self-employed 11 22

4. Others 8 16

Total 50 100

Graph No.2

Graph showing number of respondents on the basis of occupation.

42%

20%

22%

16%

Occupation

SalariedRetiredSelf-employedOthers

Interpretation: The above table clearly shows that out of 50 respondents 21 of them are salaried persons, 10 of them are retired persons, 11 of them are self-employed persons and 8 of them belongs to others category.

Conclusion: It can be easily inferred that among 50 respondents 42% of the respondents are salaried persons, 22% of them comes under self-employed category, 20% of them are retired and 16% of them falls under others category.

Q3: Table showing the rate of interested borrowers.

Table No. 3

Sl. No. Interested No. of respondents Percentage (%)

1. Yes 36 72

2. No 14 28

Total 50 100

Graph No. 3

Graph showing the rate of interested borrowers.

Yes No0%

10%

20%

30%

40%

50%

60%

70%

80%

72%

28%

Interested

Interpretation: Out of 50 respondents 36 of them are interested in borrowing loans and only few that is 14 members are not interested in borrowing loans.

Conclusion: It is clear by seeing the graph that majority (72%) of the respondents like to borrow loans and minority(28%) of respondents have considerably less interest in borrowing loans due to various reasons.

Q4: Table showing the reasons for not borrowing the loans.

Table No. 4

Sl. No. Reasons No. of respondents Percentage (%)

1. Not necessary 4 29

2. Lack of information about loans

2 14

3. Unsure about repayment 3 21

4. Local lenders 5 36

Total 14 100

Graph No. 4

Graph showing the reasons for not borrowing the loans.

0%

5%

10%

15%

20%

25%

30%

35%

40%

Reasons

Interpretation: Out of 14 respondents not interested in borrowing loans 4 of them comes under not necessary category, 2 of them under lack of information about loans category, 3 of them under unsure about repayment category and 5 under local lenders category.

Conclusion: Most of the respondents gave reasons for not borrowing loan is due to local lenders. So the Banks should consider this reason in order to increase the rate of interested respondents in future.

Q5: Table showing the preferences of borrowers in borrowing loans and advances.

Table No. 5

Sl. No. Preference No. of respondents Percentage (%)

1. Personal 14 28

2. Agricultural 17 34

3. Micro & Small Enterprises

12 24

4. Commercial & institutional

7 14

Total 50 100

Graph No. 5

Graph showing the preferences of borrowers in borrowing loans and advances.

Personal

Agricultural

Micro & Small Enterprises

Commercial & institutional

0% 5% 10% 15% 20% 25% 30% 35% 40%

28%

34%

24%

14%

Preference

Preference

Interpretation: Out of 50 respondents 14 respondents comes under personal loans, 17 respondents comes under agricultural loans, 12 respondents comes under micro & small enterprises loans and 7 respondents comes under commercial & institutional loans.

Conclusion: Most of the respondents prefer to obtain agricultural loans and only a few respondents like to borrow commercial & institutional loans. That’s why our India is called as an agriculture based country.

Q6: Table showing the factors that influenced the respondents to borrow the loans.

Table No. 6

Sl. No. Factors No. of respondents Percentage (%)

1. Loan amount 16 32

2. Purpose 6 12

3. Interest rate 20 40

4. Repayment period 8 16

Total 50 100

Graph No. 6

Graph showing the factors that influenced the respondents to borrow the loans.

32%

12%40%

16%

Factors

Loan amount

Purpose

Interest rate

Repayment period

Interpretation: Out of 50 respondents 16 belongs to loan amount, 6 belongs to purpose, 20 belongs to interest rate and 8 belongs to repayment period.

Conclusion: Majority of the respondents are influenced by the interest rate factor, secondly by the factor of loan amount and least influenced by repayment factor.

Q7: Table showing repayment period preferences.

Table No. 7

Sl. No. Repayment Period No. of respondents Percentage (%)

1. Less than 1 year 5 10

2. 1-5 years 15 30

3. 5-10 years 20 40

4. Above 10 years 10 20

Total 50 100

Graph No. 7

Graph showing repayment period preferences.

Less than 1 year

1-5 years 5-10 years Above 10 years

0%

5%

10%

15%

20%

25%

30%

35%

40%

10%

30%

40%

20%

Repayment Period

Repayment Period

Interpretation: Out of 50 respondents 5 respondents comes under less than one year, 15 respondents comes under one to five year, 20 respondents comes under five to ten years and 10 respondents comes under above ten years.

Conclusion: From the graph we can say the majority of the respondents would like to repay the loan from 5-10 years, because it is suitable for all levels of customers.

Q8: Table showing respondents choice from among the following agricultural loans.

Table No. 8

Sl. No. Agricultural Loans No. of respondents Percentage (%)

1. Drip irrigation 17 34

2. Scheme for purchase of land for Agr. Purpose

9 18

3. Farm Mechanisation 12 24

4. Kisan Credit Card Scheme

7 14

5. Others 5 10

Total 50 100

Graph No. 8

Graph showing respondents choice from among the following agricultural loans.

Drip Irr

igation

Schem

e for p

urchase

of land fo

r agr.

Purpose

Farm M

echan

isation

Kisan Cred

it Card

Schem

eOthers

02468

1012141618

Series1

Interpretation: In the above table out of 50 respondents 17 respondents comes under drip irrigation, 9 respondents comes under scheme for purchase of land for agricultural purpose, 12 respondents comes under farm mechanization, 7 respondents comes under Kisan credit card scheme and 5 respondents comes under others scheme.

Conclusion: Among the five popular agricultural loans majority of the respondents would prefer in borrowing drip irrigation loan, secondly for farm mechanization loans and minority in borrowing Kisan credit card loan.

Q9: Table showing respondents preference in borrowing the below listed personal loans.

Table No. 9

Sl. No. Personal Loans No. of respondents Percentage (%)

1. Car loan 9 18

2. Education loan 12 24

3. Housing loan 10 20

4. Personal loan 14 28

5. Others 5 10

Total 50 100

Graph No. 9

Graph showing respondents preference in borrowing the below listed personal loans.

Car loan Education loan Housing Loan Personal Loan Others

9

12

10

14

5

Chart TitleSeries1

Interpretation: In the above analysis out of 50 respondents 9 respondents comes under car loan, 12 respondents comes under Education loan, 10 respondents comes under housing loan, 14 respondents comes under personal loan and 5 respondents comes under Others loan.

Conclusion: Most of the respondents would like to borrow personal loan from the other five popular personal loans and secondly they give more preference in borrowing Education loan.

Q10: Table showing the level of satisfaction towards loans and advances.

Table No. 10

Sl. No. Satisfaction No. of respondents Percentage (%)

1. Highly satisfied 6 12

2. Satisfied 32 64

3. Considerably satisfied 10 20

4. Not satisfied 2 4

Total 50 100

Graph No. 10

Graph showing the level of satisfaction towards loans and advances.

12%

64%

20%

4%

Satisfaction

Highly satisfied

Satisfied

Considerably satisfied

Not satisfied

Interpretation: Out of 50 respondents 6 respondents are highly satisfied, 32 respondents are satisfied, 10 respondents are considerably satisfied and only 2 respondents are not satisfied with the loans and advances.

Conclusion: From the graph we can say majority of the respondents are satisfied with the loans and only a few respondents are not satisfied.

Q11: Table showing the expectations of the borrowers from loans.

Table No. 11

Sl. No. Expectations No. of respondents Percentage (%)

1. Low rate of interest 24 48

2. More amount 16 32

3. Long repayment period 5 10

4. Subsidy 5 10

Total 50 100

Graph No. 11

Graph showing the expectations of the borrowers from loans.

48%

32%

10%

10%

Expectations

Low rate of interest

More amount

Long repayment period

Subsidy

Interpretation: Out of 50 respondents 48% of respondents comes under low rate of interest, 32% under more amount, 10% under long repayment period and 10% under subsidy.

Conclusion: From the analysis one can say that majority of the respondents expect low rate of interest and also more amount from the loans.

CHAPTER-5

FINDINGS & CONCLUSION

The findings of the study are summarized below:

Out of total respondents 40% of them lies under Others category, 32% of them lies under Graduates category, 20% of them are Under graduates and 8% of them are Post graduates.

Respondents 42% of them are salaried persons, 20 %of them are retired persons, 22% of them are self-

employed persons and 16% of them belongs to others category.

72% of them are interested in borrowing loans and only few that is 28% members are not interested in borrowing loans.

28% respondents not interested in borrowing loans 8% of them comes under not necessary category, 4% of them under lack of information about loans category, 6% of them under unsure about repayment category and 10% under local lenders category.

Respondents 28% respondents comes under personal loans, 34% respondents comes under agricultural loans, 24% respondents comes under micro & small enterprises loans and 14% respondents comes under commercial & institutional loans.

respondents 10% respondents comes under less than one year, 30% respondents comes under one to five year, 40% respondents comes under five to ten years and 20% respondents comes under above ten years.

34% respondents comes under drip irrigation, 18% respondents comes under scheme for purchase of land for agricultural purpose, 24% respondents comes under farm mechanization, 14% respondents comes under Kisan credit card scheme and 10% respondents comes under others scheme.

Respondents 18% respondents comes under car loan, 24% respondents comes under Education loan, 20% respondents comes under housing loan, 28% respondents comes under personal loan and 10% respondents comes under Others loan.

Respondents 12% respondents are highly satisfied, 64% respondents are satisfied, 20% respondents are considerably satisfied and only 4% respondents are not satisfied with the loans and advances.

CONCLUSION

It can be easily inferred that the majority of respondents comes under Other educational group.

Among all the respondents 40%(majority) of them falls under Others category and 8%(minority) of them falls under Post Graduate category.

It can be easily inferred that among 50 respondents 42% of the respondents are salaried persons, 22% of them comes under self-employed category, 20% of them are retired and 16% of them falls under others category.

It is clear by seeing the graph that majority (72%) of the respondents like to borrow loans and minority(28%) of respondents have considerably less interest in borrowing loans due to various reasons.

Most of the respondents gave reasons for not borrowing loan is due to local lenders. So the Banks should consider this reason in order to increase the rate of interested respondents in future.

Most of the respondents prefer to obtain agricultural loans and only a few respondents like to borrow commercial & institutional loans. That’s why our India is called as an agriculture based country.

Majority of the respondents are influenced by the interest rate factor, secondly by the factor of loan amount and least influenced by repayment factor.

Among the five popular agricultural loans majority of the respondents would prefer in borrowing drip irrigation loan, secondly for farm mechanization loans and minority in borrowing Kisan credit card loan

Most of the respondents would like to borrow personal loan from the other five popular personal loans and secondly they give more preference in borrowing Education loan.

From the graph we can say majority of the respondents are satisfied with the loans and only a few respondents are not satisfied.

CHAPTER- 6

RECOMMENDATIONS

SUGGESTIONS

The following were the suggestions offered by the study:

1. Prompt measures should be taken to collect the overdues from the borrowers that will help the banks to earn profit in future.

2. For improving operational efficiency, new technology should be introduced. Computerization and automation will help in reducing unproductive and costly operations.

3. The banks should take necessary steps to increase the non-interest income, which only constitutes less than 20% of the total income, by way of collection of cheque and bills, giving guarantees, locker facilities, acting as agent providing merchant banking services etc.

4. The banks should conduct awareness programmes among the rural poor about the repayment of loans and saving habits.

5. With regards to deposits, the current deposits carry zero rate of interest. Therefore, the banks have to concentrate on mobilizing current deposits.

6. To maintain a steady growth rate of deposit, it is recommended that the banks should come forward to offer some subsidiary services like marketing assistance, technological assistance, insurance facilities, export facilities and so on.

7. The banks should take efforts to reduce the operating expenses by means of improving the efficiency of the non-viable branches by utilizing some expert services like professional management, private management and the like.

8. New attractive and innovative schemes should be introduced according to the requirements of difference types of clients.

APPENDIX

QUESTIONNAIRE.

Questionery

Personal information

Name:

Age:

Gender M/F:

1. Education Qualification: Under Graduate Graduate Post Graduate Others (please specify) 2. Occupation: Salaried Retired Self-employed Others

3. Are you interested in borrowing loans?

Yes No

4. If the answer is no, why you have not borrowed loan?

Not necessary Lack of information about loans Unsure about repayment Local lenders

5. What type of loans and advances you prefer? Personal loans Agricultural loans Commercial loans MSE loans

6. Why do you prefer the above option? Loan amount Purpose Interest rate Repayment period

7. How much period do you prefer for repayment? Less than a year 1 to 5 years 5 to 10 years Above 10 years

8. Among the following agricultural loans, which loan do you prefer? Drip irrigation Scheme for purchase of land for Agr.Purpose Farm Mechanisation Kisan Credit card Scheme Other

9. Which loan do you like to borrow among the below listed personal loans? Car loan Education loan Housing loan Personal loan Others

10. How satisfied are you with loans and advances?

Highly satisfied Satisfied

Not satisfied Considerably satisfied

11. What are your expectations from loans?

Low rate of interest More amount

Long repayment period Subsidy

Any suggestions,

OTHER RELATED ATTACHMENTS

Balance Sheet of Punjab & Sind Bank

Capital and Liabilities: Mar '15 Mar '14 Mar '13 Mar '12 Mar '11Total Share Capital 400.41 475.28 454.02 434.21 423.06

Equity Share Capital 400.41 275.28 254.02 234.21 223.06Share Application Money 0 0 0 0 0

Preference Share Capital 0 200 200 200 200

Reserves 5,195.76 4,536.00 4,150.08 3,814.74 3,380.33

Net Worth 5,596.17 5,011.28 4,604.10 4,248.95 3,803.39Deposits 86,714.72 84,730.16 70,641.50 63,123.98 59,723.19

Borrowings 3,048.23 2,305.04 2,540.05 3,382.33 2,885.89

Total Debt 89,762.95 87,035.20 73,181.55 66,506.31 62,609.08

Other Liabilities & Provisions 2,394.28 2,462.66 2,692.25 2,150.01 2,137.68

Total Liabilities 97,753.40 94,509.14 80,477.90 72,905.27 68,550.15

Assets Mar '15 Mar '14 Mar '13 Mar '12 Mar '11Cash & Balances with RBI 3,756.11 4,834.49 3,248.92 3,640.15 4,579.80

Balance with Banks, Money at Call 463.4 1,490.35 830.29 675.27 316.67

Advances 63,870.18 57,239.07 51,430.7946,151.4

1 42,637.85

Investments 26,751.70 28,294.11 22,542.4820,064.1

3 18,643.65

Gross Block 994.83 1,002.72 844.13 808.38 816.25

Revaluation Reserves 0 0 0 0 0

Accumulated Depreciation 0 0 0 0 0

Net Block 994.83 1,002.72 844.13 808.38 816.25

Capital Work In Progress 0 0 0 0 0Other Assets

1,917.19 1,648.42 1,581.30 1,565.93 1,555.92

Total Assets97,753.41 94,509.16 80,477.91

72,905.27 68,550.14