Loans Nd Advances

7/31/2019 Loans Nd Advances

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RECOVERY OF LOANS AND ADVANCES

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CHAPTER 1

INTRODUCTION


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MEANING OF FINANCE

Finance is the set of activities dealing with the management of funds. More specifically, it is the decision of

collection and use of funds. It is a branch of economics that studies the management of money and other

assets.

Finance is also the science and art of determining if the funds of an organization are being used properly.

Through financial analysis, companies and businesses can take decisions and corrective actions towards the

sources of income and the expenses and investments that need to be made in order to stay competitive.

Finance is the life blood of business. It flows in mostly from scale of goods and services. It flows out for

meeting various types of expenditure. The activating element in any business which may be on industrial or

commercial undertaking is the finance.

Business finance has been defined as those activities which have to do with the provision and management

of funds for the satisfactory conduct of a business. Business finance is defined as that business activity

which is concerned with the acquisition and conservation of capital funds in meeting the financial needs and

overall objectives of business enterprises.

So we can say business finance is mainly developed around three major objectives.

Firstly, to obtain an adequate supply of capital for the needs of the business,

Secondly, to conserve and increase the capital through better management,

Thirdly, to make profit from the use of funds this is an overall objective of a business enterprise.

Before industrial revolution, finance was not of much importance. The methods of production were simple.

For example, the artisan used to work in open small hut. He had simple tools mostly made by himself.

Labour at that time was more important than capital and finance did not pose any problem. Production in

those days was, therefore labour intensive.

*Information has been collected from the websitewww.google.com
http://www.google.com/http://www.google.com/http://www.google.com/http://www.google.com/


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INDIAN FINANCIAL SYSTEM

The financial system or the financial sector of any country consists of specialized and non-specialized

financial institutions of organized and unorganized financial markets of financial instruments and services,

which facilitate transfer of funds procedures and practises adopted in the markets and financial

interrelationship, are also part of the system. The structure of a financial system in any economy is as

follows:

UNORGANISED MARKETS

In these markets consist of many lenders, indigenous bankers, transfers and private chit funds etc. whoseactivities are not controlled by RBI. Recently the RBI has taken steps to bring private function companies

and chit funds its strict control but using non banking financial companies directions in 1998.

ORGANISED MARKETS

In these markets there are standardized rules and regulations by Reserve Bank of India or other

regulatory bodies. The organized markets can be further classified into two. They are:

1) Capital markets.

2) Money markets.

CAPITAL MARKET: It is a market for long term funds which have a long or indefinite maturity. Capital

market further divided into three mainly:

a) Industrial Security market: It is a market for industry security namely equity shares or ordinary

shares, preference share, debentures or bonds. It is a market where industrial concern raises their

capital or debt by assuring appropriate instruments. It can be further subdivided into two. They are:

Primary market: It is a market for new issue or new financial claims.

Secondary market: It is a market for existing securities and those already issued and quoted in

stock exchange.

*Information has been collected from the book A Hand book of banking by N. S. Toor


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b) Government Securities Market: It is also called gilt-edged securities market. It is a market where

government securities are traded (long term securities)

FINANCIAL INSTRUMENTS

A financial instrument refers to these documents which represent financial claims on assets.

Financial instrument can also be called financial securities. These instruments are classified into

a) PRIMARY SECURITIES: Shares and debentures issued directly to Public.

b) SECONDARY SECURITIES: These securities issued by some intermediaries ex; UTI and

Mutual fund again these securities may be classified on the basis of duration as follows.

Short Term Securities: Within one year ex; bills of exchange. Medium Term Security: Maturity period between 1-5 years ex; debentures.

Long Term Securities: Maturity period more than 5 years ex; Gilts.

FINANCIAL SERVICES

a) MERCHANT BANKING: A merchant banker is a financial intermediary who helps to transfer

capital from those it to those who needit.

b) LOAN SYNDICATION: Much number of banks joins together and forms a syndicate to provideloan as big sum to corporate.

c) LEASING: A lease is an agreement under which a company acquires a right to make use of capital

assets like machinery for agreed period in return for periodic payment of rentals.

d) HIRE PURCHASE: It is an agreement relating to transaction in which goods are let on hire.

e) FACTORING: It is an agreement under which a financial intermediary assumes the credit risk in

the collection ofbook debt passes for its client.

f) VENTURE CAPITAL: A venture capitalist finances a project based on the potentialities of new

innovative projects for new entrepreneurs.

g) MUTUAL FUND: A mutual fund refers to a fund raised by a financial services company by

pooling the savings of the public.


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INTRODUCTION TO LOANS

One of the primary functions of the commercial bank is lending. Through lending commercial banks meet

their objective of making profits. The deposits collected from the public cannot be kept idle. It has to be

utilized in order to derive benefits out of it. The bank collects deposits with the objective of lending and

makes profit out of the interest received and paid. Their main aim is to deal in money and provide for those

who need it. The banker performs the job of lending within the framework of statues governing the banking

business, the government policy and guidelines issued by the authorities of the country (RBI in India).The

basic objective of nationalization of commercial banks was to provide funds to the neglected sectors like

agriculture, tiny industries and other weaker sections of the society. Today nearly 40% of the total

commercial bank advances are the priority sectors. Greater part of the commercial bank funds are employed

in the form of loans and advances. Loans bring good money to the bank in the form of profit by charging

interest. Lending function of a commercial bank benefits the bank in the form of profit and the one who

takes loans enjoy the benefit of money required for their activities. The wheels of industry cannot run

without the bank advances. The bank needs to assess the condition of industry or trade or any business

enterprise while making advances.

SHORT TERMS LOANS FINANCED BY COMMERCIAL BANKS

Commercial banks are the most important source of short-term capital. The major portion of working capital

loans are provided by commercial banks. They provide a wide variety of loans tailored to meet the specific

requirements of a concern. The different forms in which the banks normally provide loans and advances are

loans and advances are loans, cash credit, overdrafts, purchasing and discounting of bills.

LOANS:

When a bank makes an advance in lump-sum against some security it is called a loan. Here, a specified

amount is sanctioned by the bank to the customers. The loan amount so sanctioned is paid to the borrower

either in cash or by credit to his account. A certain amount of interest has to be paid by the borrower for the

loan that has to be borrowed. A loan can be repaid in lump-sum or in installements. Commercial banks

generally provide short term loans up to one year for meeting the working capital requirements. But these

days, term loans exceeding one year are also provided by banks. The term loans may be either medium term

or long term loans.


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CHAPTER 2

RESEARCH DESIGN


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TITLE OF THE STUDY:

Recovery of loans and advances at State Bank of Mysore

Introduction

Any amount borrowed or lent is called a loan. If money is borrowed it is debt of business and if loan is

given, it is receivable for the business.

Loan is a method of lending under which bank gives credit to a borrower for a fixed period and for a specific

purpose. Loan are promises for future payment, they have to be repaid in periods beyond a year and are,

therefore long term liabilities.

The process of granting of loans and advances post credit worthy evaluation of the borrower coupled with

the legal documentation is more often than not , reinforced by a strong recovery and monitoring process. The

risks associated with adverse selection and moral hazard are to be prevented at any cost.

REVIEW OF LITERATURE:

It is mandatory to scan through the literature which has already gone through the proposed study

subject. Various research works on lending practises of SBM has been very helpful in the

successful conduct of the study. However all such studies concentrate on certain issues and suggest

piecemeal solution. Therefore, a comprehensive study is elusive. The text and academics literature

which helped the study in details are:

A Hand Book of Banking by N. S. Toor

Ramman Finance management.

Finance management and policies by James C. Van Horne.

Management accounting principle and practises by R. K. Sharma.

Accounting for managers S. P Jain and K.L. Narang.

Research methodology by C.R. Kothari.

Business Research Methods by Appannaiah Reddy and Ramnath


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RESEARCH METHODOLOGY:

This refers to the method of data description. Descriptive research includes surveys and fact findings

enquire of different kinds. The major purpose of descriptive research is description of the state of affair as it

exists at present. In business research we quite often use the term export facto research for descriptive

research studies.

The main characteristics of this method is that the researcher has no control over the variable, he can only

report what has happened or what is happening. Themethod of research utilised in descriptive research are

survey methods of all kinds including comparative and correlation methods.

Sources of data CollectionThe data is most vital and the integral aspect, which is responsible for the completion of any project.

Primary data

The primary data will be collected through personal interaction with the executives and managers of the

Bank as also from an verification of the records to the extent permitted. Primary data will also be

collected, collated and interpreted through observation of the processes at the bank

Secondary data

It will be retrieved and collated from the annual reports of the Bank, from reports in various magazines,

academic journals and other published papers of repute.

Plan of Analysis

The data collected will be analyzed using the various techniques and tools generally accepted as proper for

such analysis. Techniques like Risk Identification and financial analysis will be used in arriving at the

logical conclusion.


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Limitation

This study is limited by resource and time constraints

For the reasons mentioned above the study is restricted to only one Bank and in that direction it may not

be reflective of the pattern at the other banks

Due to confidential nature of the record may not be in a position to collect data in totality but through a

representative sampling technique will endeavour to overcome this limitations

Chapter Scheme

1) INTRODUCTION

2) RESEARCH DESIGN

3) INDUSTRY PROFILE

4) PROFILE OF THE COMPANY/ORGANISATION/SYSTEM.

5) ANALYSIS AND INTREPRETATION OF DATA.

6) SUMMARY OF FINDINGS ,CONCLUSION & RECOMMENDATION.

BIBLOGRAIPHY.

APPENDIX.


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CHAPTER 3

COMPANY PROFILE


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History

State Bank of Mysore was established in 1913 as Bank of Mysore under the patronage of the

erstwhile government of Mysore, at the instance of the banking committee headed by the great Engineer-

Statesman, Late Dr Sir M Visvesvaraya. Subsequently, in March 1960, the bank became an Associate of

State Bank of India. State Bank of India holds 92.33% of shares. The bank's shares are listed in Bangalore,

Chennai, and Mumbai stock exchanges.

SBM has a widespread network of 671 branches (as on 31.01.2009) and 20 extension counters spread all

over India which includes 6 specialized SSI branches, 4 Industrial Finance branches, 3 Corporate Accounts

Branches, 4 specialized Personal Banking Branches, 10 Agricultural Development Branches, 3 Treasury

branches, 1 Asset Recovery Branch and 7 Service Branches, offering wide range of services to the

customers.

The bank has a dedicated workforce of 9720 employees consisting of 3169 supervisory staff, 6551 non-

supervisory staff (as on 31.03.2008). 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 environment. The paid up capital

of the Bank is Rs.360 Millions as on 31.03.2008 out of which State Bank of India holds 92.33%.The Bank

has achixeved a capital adequacy ratio of 11.73% as at the end of March 2008. The bank has an enviable

track record of earning profits continuously and uninterrupted payment of dividend since its inception in

1913.

Total deposits of the bank as at the end of January 2009 is Rs 31817 Crores and the total advances stood at

Rs. 24713 Crores which include export credit of Rs. 10159.50 million. The forex turnover of the bank

crossed Rs 336963.50 million during the year March 2007 to March 2008 which is 44.66% higher.

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.


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Services Offered By The Company:

Deposits

My bank Surakhshna- A unique deposit scheme linked with insurance cover has been introduced.

Insurance cover to a maximum of Rs. 5 lakh on deposits held for 5 years and more.

Saving Plus- In order to provide value added services to our Personal Segment customers, a new

specialized auto sweep product for Personal Segment savings bank customers has been introduced.

Saral Savings Bank account (No Frills account)- This account comes with very low minimum

balances as well as low / nil charges, to cater to the needs of individual from the vast sections of

population who are, otherwise, not fulfilling certain conditions of our existing Savings Bank

requirements. SBM Tax Saver Scheme (Tax saving scheme under Sec 80c of the IT act)A Bank Term Deposit

Scheme 2006 has been introduced by the Central Government commencing from the financial year

2006-07 wherein time deposits made upto Rs.1.00 lakh for a period of 5 years are exempted from

payment of Income tax under Sec 80C

The following are the Deposit Scheme provided by State Bank of Mysore:

Multi Option Deposit Scheme

It combines the features of Current account, Savings Bank a/c, TDR or RID a/c. The product

proposes to give liquidity to the depositor with high returns and convenience. It provides the

depositor an automatic overdraft facility in Current a/c and automatic withdrawal of Term deposits in

units through SB a/c. Depositor has to simultaneously open TDR / RID a/c for Rs.1000/-, SB a/c with

balance Rs.500/- and Current a/c.

Long Term Floating Deposit account

A fixed deposit scheme for 5 & 8 years to get an additional interest of 0.25% and 0.5% respectively

more on base interest rate (of 3 years deposit). The depositor has the option to invest in long term

maturity at a floating rate with an opportunity to gain in any upward movement in interest rate.

Minimum deposit of Rs.50000/-.


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Perennial Income Plan

A novel pension plan for a tension free future specially for self-employed / daily wage earners whoare not covered under pension scheme. Customers save specified amount at regular monthly intervals

for a specified period of say, 7 / 10 years when young and energetic. They get a regular monthly

income after 7th / 11th year equal to or twice the monthly saving throughout life or get a huge sum

for their large needs.

Super Savings Package

This is a plan which takes care of old age. Customers save a specified small sum every month for 15

or 25 years (renewed every 10 years) and it is re-cycled every 10 years to get the maximum benefit of

compound interest.

Advances

Personal Banking schemes

Commercial & Institutional Banking schemes

Agricultural Banking schemes

Micro and Small Enterprises schemes (MSE)

NRI Services

NRI Deposits

International Banking - Forex services Performa for foreign currency remittances

Account opening form for non-resident Indians

Interest rates on NRE Deposits and schemes

Details of its correspondent Banks -Exchange companies with Draft drawing arrangement with the

Bank -Money Transfer to India Through Western Union -Remittance facility through State Bank of

India, New York Branch


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LOAN SCHEMES

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

Upto Rs. 1.50 lacs depending on repayment capacity of the individuals.

Security

Third party guarantee of equal means. Securities like LIC policies, NSC, KVIP, Shares etc.,

Period of Repayment12 months to 36 months.

Type of Loan

Demand loan.

Processing Fee

1% of loan amount (one time).


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Mortgage Loan

Eligibility

Individuals, employees, professionals, self-employed and others who are income tax assessee whose netmonthly 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 lacs

Salaried Class - Maximum 36 times net monthly income.

Others - Maximum three times the net annual income.

Type of Loan

Term loan or current account overdraft

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 authorising the Bank to collect rent should be given.

Margin

50% of the market value of the security.

Period of Repayment

Repayable in 84 equated monthly instalments.

Processing Fee

1.25% of the loan amount (one time)


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Maximum Repayment period

Age Repayment

period

For persons below 35 years of age 25 years

For persons below 45 years of age 20 years

For persons above 45 years of age 15 years

Margin

Amount Margin (%)

Upto Rs. 30 lakhs 20%

Above Rs. 30 laks to 75 lakhs 20%

Above Rs 75 lakhs to 1.00

Crore

25%

Above Rs 1.00 crore 40%

Margin for Purchase of New houses which are ready for possession (Applicable to First sale only)

Amount Margin (%)

Upto Rs. 75 lakhs 15%

Above Rs.75 laks to 1 cr 20%

Above Rs 1.00 crore 30%


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Interest

Penal interest of 1% in case of default of three or more consecutive instalments.

Loan amount Processing Charges (w.e.f. 01.06.2011)

Upto Rs 25 Lacs 0.25% of loan amount, with a minimum of Rs

500/-

Above Rs 25 Lacs and upto Rs 75

Lacs

Rs 10,000/-

Above Rs 75.00 Lacs Rs 20,000/-

Insurance

The house property has to be insured covering all risks. Group insurance is available to cover the life of the

borrower on payment of one time upfront premium.

Disbursement

Direct to the sellers in case of purchase.

For Construction / Repairs / Renovationsin a phased manner

Repayment

Repayable in monthly instalments. Repayment period ranging from 5 to 25 years, including a moratorium

period ranging from 6 to18 months from the date of the first disbursement.

Schemes and Interest Rates are subject to changes from time to time.

Attractive features of State Bank of Mysores Housing Finance scheme

Loans from State Bank of Mysore are cheaper than housing finance agencies / companies.

Nominal processing charges.

No administration charges.

No commitment charges.

Interest charged on reducing balances.

Facility available at all branches in India.

Exemption from wealth tax for one house under Wealth Tax Act.


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Simple security needed.

Hypothecation of assets created (articles bought)

Third party guarantee acceptable to the bank if check off facility is notavailable.

Insurance Cover

Vehicles bought to be insured for full value.

For articles above Rs.10000/- insurance will be for market value or atleast110% of the loan amount whichever is higher.

A small one-time service fee of 1% of the loan amount.

Specially for the Salaried class for purchase of two-wheelers

Minimum net salary of Rs.2000/- per month with availability of check off system.

Loan sanctioned upto 90% of the cost of vehicle or 12 times the net monthly income

whichever is less. Gross deduction including loan instalment should not exceed 33%

of the gross salary.Maximum - Rs. 4.00 lacs or 80% of the cost of vehicle +1%.

Second hand cars - 60% of market value; not older than 5 years; Maximum loan - Rs.

2 lacs.

Repayable in 36 months, may be extended upto 60 months

Security offered should be:

Hypothecation of vehicle

Registration of hypothecation charge with Regional Transport Authority.


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Third party guarantee

Vehicle should be insured for full value.

One-time service fee of 1% of loan amount.

Gnanamitra Educational Loan

Purpose

To enable students with academic brilliance to meet tuition and other fees / maintenance costs / books and

equipment and cost of passage for studies abroad etc., for pursuing studies at recognised school / college /institution.

Courses Eligible- Higher Studies

Diploma / Graduate / Post-graduate courses in the faculties of Engineering, Technology, Architecture,

Medicine, Dental Science, Agricultural Science, Veterinary Science and Computer Certificate courses of

reputed institutes accredited to department of electronics or affiliated to university

Limit

Amount of loan

(in Indian Rupees)MIN(Rs.) MAX(Rs.)

Higher Education- In India 10000 10.00 lacs

Higher Education- Abroad 10000 20.00 lacs

Margin

Upto Rs. 4.00 lacs Nil

Above Rs. 4.00 lacs -

For studies in India 5%

For studies abroad 15%


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INTEREST RATES: SCHEMES AND INTEREST RATES ARE SUBJECT TO CHANGES FROM TIME

TO TIME.

Second Educational Loan

To enable the students for taking higher education, provided the student secures 60% marks in existing

course. The second loan is to be availed only from the branch where the first educational loan has been

sanctioned.

Repayment

Technical / Professional Higher studies in India / Abroad

Repayment of loan to commence immediately after disbursal, by the parent / guardian, out of his / her

income. Instalments may be nominal (to cover interest portion, at least) during the period the student is

undertaking the studies. The instalments will be stepped up one year after the completion of the course or

after the student gets a job, whichever is earlier, so that the loan gets repaid together with interest within a

period of 60 to 84 months thereafter.

Security

Amount. Security

Upto Rs. 4.00 lacs NIL

Above Rs. 4.00 lacs

and upto Rs. 7.50

lacs

Collateral in the form of a suitable 3rd party guarantee

Above Rs. 7.50 lacs

and upto Rs. 10.00

lacs

Collateral security by way of immovable property or equal to the loan amount in the

form of Government securities / NSCs / Units of UTI

Guarantee of parents / guardians (in the case of minors, the parent / guardian will

execute the documents on behalf of the minor and also in his capacity as co-borrower) /

third party guarantee where sufficient collateral security is not available

Insurance

An insurance policy will be taken on the life of the student borrower for an amount equivalent to the loan

amount and the policy should be convertible whole-life one for 25 / 30 years, convertible after 5 years into


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one with endowment benefits. The Bank will pay the insurance premia on the policy by debiting it to the

loan account. On liquidation of the loan, the policy will be reassigned and delivered to the borrower.

Repayment

Completion of course + 1 year or 6 months after getting a job, whichever is earlier.The interest to be debited

monthly on simple basis during the repayment holiday / moratorium period. Penal interest @2% will be

charged for amount above Rs. 2 lacs for the overdue amount and overdue period. Interest concession of 1%

per annum is available, provided the interest is repaid during moratorium period as and when the

interest is applied.

MyBank Scholar Loan

MYBANK SCHOLAR- A SCHEME FOR STUDENTS OF PREMIER AND REPUTED

INSTITUTIONS

Purpose

Loans will be granted to deserving/meritorious students for pursuing full time courses in India at selected

premier and reputed institutions identified by the Bank.

Eligibility

The applicant should be an Indian National and should have secured admission to full time professional/

technical courses in selected elite institutes

Eligible Expenses

Fee payable to college/school/ hostel

Examination/ Library/Laboratory fees

Purchase of books/equipments/ instruments/ uniforms

Caution deposit/ building fund/ refundable deposit supported by institution bills/receipts [not to

exceed 10% of tuition fees for the entire course]

Purchase of computers, if essential for completion of course

Any other expense required to complete the course like study tours, visits to foreign universities in

exchange programs, project work, thesis, etc


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Car Loan Scheme

For New Cars:

Salient features of the 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.

Margin: 15%

Security:

1) Hypothecation Charge over the car.

2) Noting of Banks lien with the R.T.O.

3) Third party guarantee (if there is a need)

Repayment: the loan to be repaid in 84 EMIs (Maximum)


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Insurance:

Comprehensive insurance cover for the full value of the vehicle.

Service Charges:

0.50 % of the loan amount with a minimum of Rs.500/- and maximum of Rs.10,000/-

Prepayment charges: No Pre Closure / Pre Payment penalty on all car loans.

FREE ACCIDENT INSURANCE COVER (DEATH RISK ONLY)

Papers to be submitted:

1. Statement of Bank account of the borrower for last 12 months.

2. 2 passport size photographs of borrower/guarantor.

3. Signature identification from bankers of borrower/guarantor.

4. A copy of Passport /Voters ID card/PAN card.

5. Proof of residence by way of tax receipts, telephone bill, electricity bill or any other document that

comply with the regulatory and/or KYC requirements.

6. Latest salary-slip showing all deductions and TDS Certificate-Form 16 in case of salaried persons.

7. Copy of Income tax Return for the last 2 financial years duly acknowledged by the ITO for

professionals, Self employed and others.

8. Proof of official address for non-salaried individuals.

9. Proforma invoice of the vehicle.


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For Used Cars:


Purpose:

For the purchase of passengers Cars, Jeeps, Multi Utility Vehicles which are not more than 5 years old.

Valuation:

Certificate of fitness / valuation from a reputed garage is required.

Repayment:

The loan has to be repaid within 7 years from the date of original purchase of the vehicle.

Loan for purchase of residential site / plot

Eligibility

Individuals not above the age of 60 years with a steady source of income

Purpose

To purchase site / plot by BDA / Housing Board / District Urban Development Authority / City

Improvement Trust Board / Municipal Corporation / State Development Authority, on first sale only

Loan Amount

24 times net monthly income / 2 years annual income (subject to production of satisfactory proof) or 80% of

the cost of the site whichever is less

Income of Spouse

For arriving the quantum of loan, income of the spouse may be considered where the allotment will be in

single name and spouse stands as guarantor

Other Income

Regular income of the borrower from all sources can be considered subject to the satisfactory proof of the

income


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Margin

20% of the cost of site / plot

Type of Account

Medium Term Loan Account

Repayment

Maximum of 60 months in equated monthly instalments

Processing Fee

Rs. 500/- flat per account

Security

Equitable Mortgage of the site / plot to be purchased

Other Conditions

a) The letter of allotment / agreement for sale from the Housing Board / BDA / District Urban Development

Authority / City Improvement Trust Board etc., should be obtained

b) A letter signed by the allottee duly expressing his / her intention to create the Mortgage (equitable /

registered) in favour of the Bank to be obtained and forwarded to the allotting agency

c) The said letter should also contain a direction to the allotting agency to hand over the Documents directly

to the Bank / Bank's Representative after registration of the property

d) A letter of undertaking to be obtained from the site allottee to the effect that a house will be constructed in

due course and the relative site will not be sold on commercial consideration


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MYBANK ARAKSHAK

Personal loan scheme for Police Personnel

This scheme is introduced to assist the Police Personnel to avail the loan hastle free

Eligibility

All Police Personnels (Permanently employed)

Purpose

Personal loan for any purpose including purchase of consumer durables

Loan Amount

10 times net monthly income with a maximum of Rs.1.50 lac

Income of Spouse

Spouse income may be considered to arrive at the eligible loan amount provided spouse is also employed

(permanent employment) and stands as guarantor

Type of Account

Demand Loan Account

Margin

Nil

Repayment


Processing Fee

Rs.250/- flat.

Security

Upto Rs.25,000/- Nil

Above Rs.25,000/- check off facility. NSC,LIC policy may be insisted for security wherever possible or

third party guarantee of equal means


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Other Conditions/Requirements

Loan Recovery through check off facility

MYBANK ADHYAPAK

Personal loan scheme for teacher community

Eligibility

Permanent Teachers / Non-Teaching Staff of Central / State Govt. Educational Institutions and also Teachers

and Non-Teaching Staff of Govt. Recognised Schools / Colleges / Aided Institutions

Purpose

Personal Loan for any purpose including purchase of consumer durables

Loan Amount

10 times net monthly income with a maximum of Rs.1.00 lac

Income of Spouse

Spouse income may be added to arrive at the eligible loan amount provided spouse is also employed and

stands as guarantor.

Type of Account

Demand Loan Account

Margin

Nil

Repayment


Processing Fee

Rs.250/- flat

Security

Upto Rs.25,000/- Nil (only Check off facility).
http://www.statebankofmysore.co.in/index.php/advances/personal-banking-.html#Top


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MYBANK UTSAV

Personal loan scheme for individuals for meeting expenditure related to Festivals

Eligibility

a)Employees of State / Central Govt.,/ PSUs / profit making Public / Private Ltd., Companies, Institutions

etc., with a minimum of 2 years service.

b)Self employed persons with a minimum 3 years standing / experience.

c)Persons having regular source of income from verifiable channels like Pensions and Interest on TDRs /

NSCs / Govt. Securities etc.,

Purpose

Loan to individuals for meeting expenditure related to Festivals

Minimum Net Income

Net Monthly Income (NMI) of Rs.3000/- & above

Loan Amount

Four times the net monthly income with a minimum of Rs.5000/- and a maximum of Rs.50,000/- (Borrowers

other than salaried people should produce acceptable proofs with respect to their annual income)

Security

Primary - Nil

Collateral - personal guarantee of the spouse if employed, or any other person of adequate worth where

check off facility is not available

Repayment Period

Maximum of 12 months through EMIs. No penalty for prepayment

Processing Fee

Rs.100/- per application


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Security

Upto Rs.25,000/- Nil (only Check off facility).



Sanjeevini

This scheme is introduced to provide timely assistance for obtaining Medical treatment for Salaried class,

Self employed persons, Employees of reputed PSUs, Profit making public limited companies, Self employed

engineers, Doctors, Architects, Chartered Accountants, MBAs, Pesioners of PSUs, Govt. (state/central)

public sector banks and also pensioners of State Bank of Mysore.


Eligibility:

a) Employees of Government, Reputed PSUs and profit making Public Limited Compani, with a

minimum of 10 years service

b) Self Employed Engineers, Doctors, Architects, Chartered Accountants, MBAs, with a

minimum 5 years standing. They should be below 65 years of age

c) Pensioners of PSUs / Govt. (State/Central) Public Sector Banks who have taken premature

voluntary retirement and are 60 years of age or less, including pensioners of SBM

d) Agents of Insurance / KVP / Mutual Funds etc., who are tax assesees and whose gross annual

income exceeds Rs. 1.50 lacs. The facility will be considered only if a power of attorney or

mandate is registered with the principal organisation with which the agent deals, authorising them

to remit the commission direct to the Bank.

Provided, however, that if the person treated happens to be a minor Son / Daughter of an eligible

applicant, the loan can be extended to the Parent earning

Income Criteria:

a) For Employees / Pensioner - Net monthly income Rs. 6000/-

b) For Self Employed Person - Net annual income of Rs. 1,50,000/- as per latest I.T. Returns

c) For Agents - Gross income exceeding Rs. 1.50 lakh per annum (to produce latest I.T. Returns)

d) Income of the spouse can be considered if the spouse guarantees the loan

Loan Amount:


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Minimum Rs. 20,000/-

Maximum 12 months net monthly income, Net of all deductions, including Income Tax for

salaried individuals and pensioners and 1 year's net annual income in case of Self-employed

professionals subject to the ceilings as below:

Employees and Professionals: Rs. 1.50 lacs

Pensioners who have taken early retirement and Agents under eligibility above Rs. 1.00 lac

Margin:

15 % of the total cost of Hospital bill

Rate of Interest: (wef 10.08.2008)

With check-off facility 15.25%

Without check-off facility 15.50%

Type of Loan: Medium Term Loan

Security: Tangible Collateral Security.

Procesing fee:

0.50% with a maximum of Rs. 500/-.

Disbursal:

1. Directly to hospital against production of bills or

2. Payment against indents from hospital

3. Reimbursement may also be considered within 15 days from the date of discharge when

payment has already been made

Repayment:

Minimum -36 months

Maximum 72 months - out of Salary / Pension /Professional Income / Agricultural Income

Age limit:

Maximum 65 years

Other Conditions:


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STRATEGIES FOR RECOVERY

1. Preparation Of Demand List:-

The society shall prepare a village wise demand list of all the borrowers. The list shall contain the

information of over dues at the beginning of the year i.e. 1st April; loans falling due for repayment are

subsequent months up to March. The total demand for the year should be arrived at on basis of

demand falling due in different months. The demand register shall be prepared by 30 th November by

the Secretary of the society which shall be test checked by the Supervisor in at least 10% cases.The

list of defaulters shall be displayed in the notice board of the society, gram panchayat and atconspicuous places in the village for information of the borrowers. A copy of the list shall be supplied to

the Area Directors and President of the society to pursue with the defaulting members for repayment

2. Service Of Demand Notice:-

The demand notice to members shall be prepared by the Secretary and service of the

notices on the members completed by 31st December. In case of KKGC and KKSC holders, the

demand notice shall be served by the Bank Supervisor. As regards other members, the Secretary of

the society shall personally have the notices and obtain the dated acknowledgement of the borrowers

on the reverse of the duplicate copy. In case the borrower is absent from the village, the notice shall be

served on his purpose or any adult member of the family. In no case the demand notice shall be

allowed to be served on the borrowers through the Peon/Watchman of the society

3.Fixation Of Target:-Fortnightly target for recovery should be fixed for each society/branch month wise starting from

December onwards and communicated to all concerned. Normally the target for recovery should be

15% of the demand by December, 20% in January 25% in February and 30% in March. The

achievement against the target shall be monitored and reviewed every month in branch level meetings

of PACS and branch Managers meeting at the Head Office of the CCBs. The shortfall in achievement

during the month shall be added to the next months target. Fortnightly report of recovery of loans shall

be submitted by the CCBs to OSCB in the prescribed format from January to March on the 3rd day of

the succeeding fortnight to which it relates.


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cases shall be prepared and filed by 31st August. The KCCB would arrange for holding camps at the

branch level for preparation and filing of dispute cases in consultation with DRCS and Circle ARCS. In

such camps the societies will attend the branch with relevant records and after scrutiny by

Branch/Department Officer, the dispute cases will be filled before the appropriate authority in the camp

itself. The decree copies already received shall also be covered by E.P. cases in in those camps. All

dispute and E.P. cases should be routed through the branch managers to ensure that all required

formalities are complied with before the case is filed. RCS (O) in his letter No. 4641 dated 27-03-2003

has issued instruction to the Circle ARCS to send a copy of the decree to concerned branch manager

so as to enable them to ensure filing of E.P. cases with in 15 days from the date of award of decree.

The Branch Manager should also keep close contact with the Principle Officer/Arbitrator/Sale Officer

for expeditious disposal of cases filed. The progress of disposal of dispute and E.P. cases shall be

reviewed in close coordination with the Divisional DRCS and Circles ARCS in the monthly meetings.

Dispute cases filed by the societies pending for more than three months and E.P. cases more than one

year should be identified and brought to the notice of concerned ARCS and DRCs with copy to RCS,

Orissa and Managing Director, OSCB. Similarly in direct advance cases disputes pending for more

than six months and E.P.S pending for more than one year should be identified and reported to proper

quarter.


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CHAPTER 4

ANALYSIS AND INTREPRETATION


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INTREPRETATION:


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Table:1

Table showing total advances from the year 20092012

Year Amount ( in Crores) Percentage (%)

2009- 2010 22,156.11 25.95

20102011 27,868.11 32.62

20112012 35,393.55 41.43

Total 85,417.77 100

ANALYSIS:

From the above table it can be analysed that in the year 20092010 the total no. of advances was 22,156.11

crore with a 25.95%; in 20072008 the total no. of advances was 27,868.11 crore 32.62% and in the year

20102011the amount is 35,393.55 with 41.43%.


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Graph: 1

Graph showing total advances from the year 20092012

INTERPRETATION:

From the above pie- chart it can be inferred that in the year 20102011 showed the maximum

advances.

Total advances


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Graph 2

Graph showing outstanding amount of the loan for the years 2009- 2012.

(a)Housing finance

INTERPRETATION:

From the above pie- chart it can be inferred that there is continuous growth every year in the housing

finance segment. There is a noticeable growthin the home loan segment which is very profitable to the bank

for their further financial improvement.

32%

32%

36%

Housing finance

2009- 2010

2010 - 2011

2011 - 2012


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Table 3

Table showing outstanding amount of loan for the years 2009 - 2012

(b) Car loans

ANALYSIS:

From the above table it is analyzed that when we compare the year 20092010 the amount outstanding was

70.18 crore with 23.62% . In the year 20102011 the amount was 80.02 crore which shows 26.96% and in

the year 20112012 the amount was 146.81 crore with 49.42%.

Year Amount (in crore) Percentage (%)

2009 - 2010 70.18 23.62

2010 - 2011 80.07 26.96

2011- 2012 146.81 49.42

Total 297.06 100


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Graph3

Graph showing outstanding loan for the year 20092012.

(b) Car loan.

INTERPRETATION:

From the above graph it can be inferred that in the year 20112012 there is a substantial growth in the car

loans as against all previous years.

0

50

100

150

2009 - 20102010 - 2011

2011 - 2012

Year

car loan

Amount outstanding in Rs.

Crore

Percentage


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Graph 4:

Graph showing outstanding loan for the year 2009- 2012.

(c) Personal loan

INTERPRETATION:

From the above mentioned graph it can be interpreted that there is a substantial growth every year in the

personal loans.

0

100

200

300

400

500

600

2009 - 2010

2010 - 2011

2011 - 2012

personal loan

Amount

outstanding in

Rs. Crore

Percentage


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Table 5

Table showing outstanding loan for the years 2009- 2012.

(d) Educational loan


20092010 224.99 26.88

2010 - 2011 276.84 33.09

20112012 335.07 40.03

Total 836.9 100

ANALYSIS:

From the above table it is analysed that when we compare the year 2009 2010 the amount

outstanding is 224.99 crore with 26.88%. In the year 20102011 the outstanding amount is 276.84 crore

with 33.09% and in the year 20112012 the outstanding amount is 335.07 crore with 40.03%.


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Graph 5

Graph showing outstanding loan for the year 2009 - 2012.

(d) Educational loan

INTERPRETATION:

From the above graph it is seen that there is a constant growth in the education loan of State Bank of

Mysore. There is a noticeable growth in the education loan segment which is very profitable to the bank for

their further financial improvement

0

50

100

150

200250

300

350

2009 - 20102010 - 2011

2011 - 2012

Outstanding education loans

Amount outstanding in Rs.

Crore

Percentage


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Graph 6

Graph showing outstanding loans to retail sector for the year 2009 - 2012.

INTERPRETATION:

From the above graph it can be inferred that there is a moderate growth in the loans of the retail

sector from 2009 - 2012.The maximum growth is in the year 20112012.

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

4,000.00

4,500.00

2009 - 20102010 - 2011

2011 - 2012

Outstanding loans to retail sector

Amount in crore

Percentage


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Table 7

Table showing outstanding loans to corporate sector for the year 20092012.


20092010 13,032.09 26.05

2010 - 2011 15,661.44 31.29

20112012 21,349.41 42.66

Total 50,042.94 100

ANALYSIS:

From the above table it is analysed that when we compare the year 2009 2010 the amount was 13,032.09

crore which shows a percentage of 26.05. In the year 20102011 the amount was15,661.44 in crore which

shows the percentage of 31.29 and in the year 20112012 the amount was 21,349.41 in crore which shows

the percentage of 42.66.


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Table 8

Table showing outstanding loans to others which includes priority sector for the year

2009 - 2012.


20092010 6,138.64 24.53

20102011 8,763.02 35.03

2011 - 2012 10,118.47 40.44

Total 25,020.14 100

ANALYSIS:

From the above table it is analyzed that when we compare the year 200920010 the amount was 6,138.64

crore with 24.53%. In the year 20102011 the amount was 8,763.02 crore with 35.03% and in the year

20112012 the amount was 10,118.47 crore with 40.44%.


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Table 9

Table showing total outstanding loans to business sector for the year 2009 - 2012.

Year Amount (in Crore) Percentage (%)

20092010 22,640.45 26.16

2010 - 2011 28,151.68 32.55

20112012 35,728.24 41.29

Total 86,520.37 100

ANALYSIS:

From the above table it is analysed that when we compare the year 20092010 the amount outstanding was

22,640.45 crore which shows a percentage of 26.16. In the year 2010 2011 the amount was 28,151.68

crore which shows the percentage of 32.55 and in the year 2011 2012 amount was 35,728.24 crore which

shows the percentage of 41.29.


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Graph 9

Graph showing outstanding loan to business sector for the year 2009- 2012.

INTERPRETATION:

From the above graph it is inferred that there is a substantial growth in the outstanding loan in business

sector which concludes that it is highly advantageous to the bank for their further financial improvement.

26%

33%

41%

Outstanding loan to business sector

2009- 2010

2010 - 2011

2011 - 2012


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Table 10

Table showing total outstanding retail advances for the year 2009- 2012


20092010 3,469.72 30.28

2010 - 2011 3,727.22 32.53

2011 - 2012 4,260.36 37.19

Total 11,457.3 100

ANALYSIS:

From the above table it is concluded that when we compare the year 2009 2010 the amount outstanding

was 3,469.72 crore with 30.28%. In the year 20102011 the outstanding amount was 3,727.22 crore with

32.53% and in the year 20112012 the amount is 4,260.36 crore with 37.19%.


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Graph 10

Graph showing total outstanding retail advances for the year 20092012.

INTERPRETATION:

From the above graph it can be inferred that there is a sequential growth year wise which is highly beneficial

to the State Bank of Mysore.

0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

4,000.00

4,500.00

2009 - 20102010- 2011

2011 - 2012

Total outstanding of retail advances

Amount ( Rs. In crore)

Percentage


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Table 11:

Table showing term loans for the years 2009 -2012


2009 - 2010 13,983.65 30.28

20102011 19,200.56 32.53

2011 - 2012 25,991.64 37.19

Total 59,175.85 100

ANALYSIS:

From the table it can be analysed that in the year 2009 2010 the amount is 13,983.65 crore with a

percentage of 30.28. In the year 20102011 the amount is 19,200.56 crore with a percentage of 32.53 and

in the year 20112012 the amount is 25,991.64 crore with a percentage of 37.19.


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Table 12

Table showing educational qualification of the loan borrowers

Particulars Number of respondent Percentage (%)

PUC 28 28

Graduate 54 54

Post- graduate 18 28

Total 100 100

ANALYSIS:

From the above mentioned table it can be analyzed that 28% have done PUC, 54% are graduate and

18% are post-graduate..


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Graph 12

Graph showing educational qualification of the borrowers.

INTERPRETATION:

From the above graph it can be inferred that maximum no. of respondents are graduate where as

minimum no. of respondent are post-graduate.

0

10

20

30

40

50

60

PUC

Graduate

Post-graduate

Educational qualification

Number of respondent percentage


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Table 13

Table showing break up of respondent--- age wise.

Age in years No. of respondent Percentage (%)

20 - 30 45 45

30 - 40 29 29

40 - 50 18 18

Above 50 8 8

Total 100 100

ANALYSIS:

From the above table it is seen that in there are 45 respondent in the age group of 2030, 29 respondents

fall in the age group of 30 40, 18 respondent in the age group of 4050 and 8 respondent above the age

group of 50.


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Table 14

Table showing break up of respondent--- gender wise.

Gender No. of respondent Percentage (%)

Male 88 88

Female 12 12

Total 100 100

ANALYSIS:

From the above table it is analysed that 88 respondent are males whereas only 12 respondents are females

which shows the maximum no. of respondent were males.


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Graph 14

Graph showing break up of respondent--- gender wise.

Interpretation:

From the above graph it is inferred that that the maximum no. of respondent are males and female

participation is less.

0

10

20

30

40

50

60

70

80

90

Male

Female

Break up of respondent--- gender wise

No. of respondent

Percentage


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Table 15

Table showing break up of respondent --- occupation wise.

Occupation No. of respondent Percentage (%)

Government 35 35

Professional 15 15

Private 24 24

Business 26 26

Total 100 100

ANALYSIS:

From the above table it can be analysed that 35 of the respondents are government employees, 15 are

professional, 24 are in private and 26 belongs to the business .


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Graph 15

Graph showing break up of respondent --- occupation wise.

Interpretation:

From the above graph it can be inferred that bank major customer on the basis of occupation are governmentemployees.

0

5

10

15

20

25

30

35

Government Professional Private Business

Break up of respondent--- occupation wise

No. of respondent

Percentage


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Table 16

Table showing break up of respondent --- income wise.

Income (Rs.) No. of respondent Percentage (%)

Less than 50,000 20 20

50,0001,00,000 28 28

1,00,0001,50,000 48 48

Above 1,50,000 4 4

Total 100 100

ANALYSIS:

From the above mentioned table it can be concluded that there are 20 respondents income is less than

50,000 ; 28 respondents falls in the income group of 50,000 1,00,000 ; 48 respondents in the income

group of 1,00,0001,50,0000 and 4 respondents falls in the income group above 1,50,000.


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Table 17

Table showing source of awareness

Source No. of respondent Percentage (%)

SBM employees 45 45

Magazine 35 35

Friends and television 12 13

Newspaper 8 8

Total 100 100

ANALYSIS:

From the above table it can be analysed that source of awareness of 45 respondents was through SBM

employees, 35 was through magazine; 12 was through friends and television and 8 was through newspaper,

12 was through friends and television through


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Table 18

Table showing EMI paid by the borrower.

Amount No. of respondent Percentage (%)

Below 5,000 20 20

5,00010,000 43 43

10,00015,000 30 30

15,00020,000 7 7

Total 100 100

ANALYSIS:

From the above table it can be analysed that below 5,000, 20 respondent paid EMI in between 5,000

10, 000 , 43 in between 10,00015,000 , 30 paid EMI and the least EMI was paid in between 15,000

20,000.


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Table 19

Table showing loan amount borrowed by respondent.

Amount ( Rs.) No. of respondent Percentage (%)

Below 5,00,000 30 30

5,00,00010,00,000 45 45

10,00,00015,00,000 20 20

15,00,00020,00,00 5 5

Total 100 100

ANALYSIS:

It can be analyzed from the above mentioned table that that there were 30 respondents who borrowed

amount of loan below 5,00,000 ; 45 between 5,00,00010,00,000 ; 20 between 10,00,000 to 15,00,000 and

there were only 5 respondents who borrowed above 15,00,000.20,00,000


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Graph 19

Graph showing loan amount borrowed by respondent

INTERPRETATION:

From the above graph it can be interpreted that the maximum no. of amount borrowed by respondent

is in between 5,00,000 10,00,000 whereas the least of amount borrowed by respondent is in

between 15,00,00020,00,000.

0

5

10

15

20

2530

35

40

45

Below

5,00,000 5,00,000 -

10,00,000 10,00,000 -

15,00,000 15,00,000 -

20,00,000

Loan amount borrowed by respondent

No. of respondent

Percentage


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Table 20

Table showing satisfactory level of respondents with loan.

Satisfaction level No. of respondent Percentage (%)

Extremely satisfied 15 15

Satisfied 53 53

Moderate 25 25

Unsatisfied 7 7

Total 100 100

ANALYSIS:

From the above table an attempt was made to understand whether respondent feels that the products offered

by the bank were extremely satisfied, satisfied, moderate or unsatisfied.


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Graph20

Graph showing satisfactory level of respondents with loan.

INTERPRETATION:

It can be inferred from the pie-chart that that the maximum no. of respondent were satisfied where least no.

of respondent were unsatisfied.

15%

53%

25%

7%

Satisfactory level of respondent

extremely satisfied

Satisfied

Moderate

Unsatisfied


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TOTAL ASSET

YEAR

2007-

08

2008-

09

2009-

010

2010-

011

2011-

012

TOTAL ASSET(RS.

CR) 407185 459883 494029 566565 721526

Interpretation:-Above graph show that total assets of SBI is increased in 2007-08 by 52658 crore, in

2011-12 increased by 154961rs. crore. So assets of the SBM bank increased from last five year.

0

100000

200000

300000

400000

500000

600000

700000

800000

1 2 3 4 5 6

YEAR

YEAR

TOTAL ASSET(RS. CR)


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GROSS NPA

YEAR 2007-08 2008-09 2009-10 2010-11 2011-12

_GROSS NPA(RS.CR) 12667 12456 9628 9998 12837

Interpretation:- above graph shows that Non-performing assets of SBM decreased from 2007-08

to2009-10 and increased in 2011-12. There are so many reason of increases of NPA

_GROSS NPA(RS.CR)

0

2000

4000

6000

8000

10000

12000

14000

2007-

08

2008-

09

2009-

10

2010-

11

2011-

12

_GROSS

NPA(RS.CR)


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NET NPA

YEAR 2007-08 2008-09 2009-10 2010-11 2011-12

NET NPA(RS. CR.) 5442 5349 4906 5258 7424

Interpretation :-

Above graph show that net NPA decreased from 2007-08 to 2008-09 and increased in 2009-10

to 2011-12

0

1000

2000

30004000

5000

6000

7000

8000

2007-

08

2008-

09

2009-

10

2010-

11

2011-

12

NET NPA(RS. CR.)

NET NPA(RS.CR.)


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GROSS NPA (RATIO%)

YEAR 2007-08 2008-09 2009-10 2010-11 2011-12

GROSS NPA(RATIO%) 7.75 5.96 3.61 2.92 3.04

Interpretation : Above graph shows that the gross NPA (Ratio%)of SBM is decreased from 2008-09 to

2009-10 and increased in 2011-12.

0

1

2

3

4

5

6

7

8

2007-

08

2008-

09

2009-

10

2010-

11

2011-

12

GROSS NPA(RATIO%)

GROSS

NPA(RATIO%)


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NET NPA(RATIO%)

YEAR 2007-08 2008-09 2009-10 2010-11 2011-12

NET NPA(RATIO%) 3.48 2.65 1.88 1.56 1.78

Interpretation: Above graph shows that the net NPA(Ratio%) of SBM is decreased from 2008-09 to

2009 -10 and increased in 2011-12

0

0.5

1

1.5

2

2.5

3

3.5

4

1 2 3 4 5 6

YEAR

NET

NPA(RATIO%)


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CHAPTER 5

FINDINGS , SUGGESTIONS AND CONCLUSION


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FINDINGS

1. 45% of the loans taking customers are in between the age of 2030 while another 29% of customers

are in between the age 3040. 18% of the customers belong to the 40 50 age categories while 8%

are above the age of 50.

2. 88% of the loan takers are male while only 12% are female.

3. 35% of loan taking customer are working at the government sector, 15% professional, 24% private

and 26% customers are engaged in his / her own business.

4. It can be observed that majority of customers are under the income group of 1,00,000 1,50,000

which is 48% followed by the income group of Rs. 50,000 1,00,000, at 28%. The group earning

less than Rs. 50,000 owns 20% and at last the income group of Rs. 1,50,000 and above owns 4%.

5. 45% of respondent are made aware about loan by SBM employee while 35% are made aware by

magazine. 13% and 7% of customer are made aware of SBM bank by newspapers and friends.

6. Majority of the EMI was paid by the borrower in between 5,00010,000 and least EMI was paid by

borrowed in between 20,00030,000.7. 30% of customer of SBM banks are taking loans below 5,00,000, While 45% are taking between

5,00,0010,00,000 , 20% are taking between 10,00,00015,00,000 by 22% and only 5% borrowed

in between 15,00,00020,00,000.

8. 53% of the customers are satisfied with the loan amount while 25% are moderately satisfied and 15%

are extremely satisfied but 7% are unsatisfied.

9. It is also found that there is an impressive continuous growth in vehicle loan, education loan and

personal loans which is remarkably outstanding for the bank.

10.Home loan segment has a better increasing trend in coming years since it has a high rate of demand

in the current market.


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Conclusion

Human beings are no more constraint to the basic necessities in their lives. Their needs have

diversified through the ages placing an increase demand on resources. The economic boom in the country

has wide open the new challenges and opportunities to the people. This has necessitated timely and easy

availability of funds to meet the requirements of institutions and individuals in meeting their goals. Thus to

keep up with the pace of this increasing demand, the banking industry have come forward with the credit

portfolio to provide funds on relatively easier terms and conditions. Today, banks are committed towards

providing more and more number of people with finance with a view to make their lives better.

The ever increasing demands of the customers have forced the banking sectors to emerge with

new retail products bearing new unique features in them. The competition among the banks cannot be

neglected. They have been supplying loans for the purpose of purchase of vehicles , pursue of higher

education, or to meet their other personal requirements.

The banking industry is witnessing a boom at present boosted by the increasing demand for

retail loan products. The demand has arisen as a result of genuine individual needs. From an overall view

point demand for retail loans is ever rising and the same would be reflected on the demand for funds. Hence

the profitability of this particular industry is expected to take a positive track in the future ahead.


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s

BIBLOGRAPHY

A Hand Book of Banking by N. S. Toor

Ramman Finance management.

Finance management and policies by James C. Van Horne. Management accounting principle and practises by R. K. Sharma.

Accounting for managers S. P Jain and K.L. Narang.

Research methodology by C.R. Kothori.

Business Research Methods by Appannaiah Reddy and Ramnath

WEBSITES:

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www.google.com

www.rbi.org.in
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