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PROJECT REPORT

ON
A STUDY OF CREDIT ASSESSMENT IN DENA BANK
FOR THE PARTIAL FULFILLMENT
OF
MASTER OF MANAGEMENT STUDIES
SUBMITTED BY
MR. SAGAR ASHOK SURWADE
SPECIALIZATION: FINANCE
(2012-2014)
ROLL NO:
UNDER THE GUIDANCE OF
PROF. KARTIK MHAVARKAR

GAHLOT INSTITUTE OF MANAGEMENT STUDIES &


RESEARCH, KOPERKHAIRANE

ACKNOWLEDGEMENT

My sincere thanks and gratitude to our college, Gahlot Institute of


Management Studies & Research, Director, Dr. K.D.MEHRU and my project
guide Prof. KARTIK MHAVARKAR

for providing with the necessary

support and the timely guidance required for the successful completion of this
project.
I further express my thanks to Mr. (Company project guide name) at DENA
BANK for giving me the opportunity to carry out my project in the respective
department which has further enhanced my knowledge of the subject both
theoretically and practically Last but not the least, I would also like to thank
my parents for their consistent presence and help at all times.

SAGAR ASHOK
SURWADE

DECLARATION

I, SAGAR ASHOK SURWADE , the undersigned, a student of Gahlot


Institute of Management Studies & Research, Koperkhairane, declare
that this project report titled STUDY ON LOAN DEPARTMENT IN

DENA BANK was submitted by me in partial fulfillment for the


requirement of the course of Master of Management Studies. This is my
original work and has not been previously submitted as part of another
degree or diploma of another Business school or University.
The findings and conclusions of this report are entirely based on my
personal study and experience.

SAGAR ASHOK SURWADE

CERTIFICATION

This is to certify that Mr. SAGAR ASHOK SURWADE , a student of Gahlot


Institute of Management Studies & Research has successfully completed the
summer internship project entitled STUDY ON LOAN DEPARTMENT

IN DENA BANK in partial fulfillment of requirement for the completion of


Master of Management Studies as prescribed by the University of Mumbai.

_______________________

_____

________________
Internal Project Guide

Director
Date:

______________

EXECUTIVE SUMMARY
Credit risk is defined as the potential that a bank borrower or
counterparty will fail to meet its obligations in accordance with agreed terms, or
in other words it is definedas the risk that a firms customer and the parties to
which it has lent money will fail tomake promised payments is known as credit
risk.
The exposure to the credit risks large in case of financial
institutions, such commercial banks when firms borrow money they in turn
expose lenders to credit risk, the risk that the firm will default on its promised
payments. As a consequence, borrowing exposes the firm owners to the risk that
firm will be unable to pay its debt and thus be forced to bankruptcy.
The project helps in understanding the clear meaning of credit Risk
Management In Dena Bank. It explains about the credit risk scoring and Rating
of the Bank. And also Study of comparative study of Credit Policy with that of
its competitor helps in understanding the fair credit policy of the Bank and
Credit Recovery management of the Banks and also its key competitors.

Table of contents:
Page Nos.
Chapter 1:
I)
II)
III)
IV)
V)
VI)

Introduction
Objective Of the Study
Need Of the Project
Scope Of the Project
Research Methodology
Limitations Of the project

1
3
3
4
5
6

Company Profile
Organization Chart
Benefits given by the Company

7
12
13

Chapter II:
I)
II)
III)

Chapter -III:
I)
II)

Theoretical Background
Data Analysis & Interpretation

16
22

Chapter - IV:
I)
II)

Bibliography

Findings
Suggestions

37
40

41

BANKING INDUSTRY
OVERVIEW

INDUSTRY OVERVIEW
History:
Banking in India has its origin as carry 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 the interest. During the
mogal period, the indigenous bankers played a very important role in lending
money and financing foreign trade and commerce. During the days of East India
Company, it was to turn of the agency houses top 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; The Bank of Bengal in 1809,
The Bank of
Bombay in 1840 and The Bank of Madras in 1843.These three banks also
known as presidency banks and were independent units and functioned well.

These three banks were amalgamated in 1920 and The Imperial Bank of India
was established on the 27 Jan 1921, with the passing of the SBI Act in 1955, the
th

undertaking of The Imperial Bank of India was taken over by the newly
constituted SBI. The Reserve Bank which is the Central Bank was created in
1935 by passing of RBI Act 1934, in the wake of 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, the Bank of Baroda Ltd, The Central Bank of India Ltd .On July 19th
1969, 14 Major
Banks of the country were nationalized and in 15th April 1980 six more
commercial private sector banks were also taken over by the government. The
Indian Banking industry, which is governed by the Banking Regulation Act of
India 1949, can be broadly classified into two major categories, non-scheduled
banks and scheduled banks.Scheduled Banks comprise commercial banks and
the co-operative banks.
The organized banking system in India can be broadly classified into three
categories: (i)Commercial Banks (ii) Regional Rural Banks and (iii) Cooperative banks. The Reserve Bank of India is the supreme monetary and
banking authority in the country and has the responsibility to control the
banking system in the country. It keeps the reserves of all commercial banks and
hence is known as the Reserve Bank.
The Indian Banking Regulation Act of 1949 defines the term Banking
Company as "Any company which transacts banking business in India" and the
term banking as "Accepting for the purpose of lending all investment of
deposits, of money from the public, repayable on demand or otherwise and
withdrawal by cheque, draft or otherwise".
Banks play important role in economic development of a country, like:

Banks mobilise the small savings of the people and make them available
for productive purposes.

Promotes the habit of savings among the people thereby offering

attractive rates of interests on their deposits.


Provides safety and security to the surplus money of the depositors and

as well provides a convenient and economical method of payment.


Banks provide convenient means of transfer of fund from one place to

another.
Bank acts as an intermediary between the depositors and the investors.
Bank also acts as mediator between exporter and importer who does
foreign trades.

Thus Indian banking has come from a long way from being a sleepy business
institution to a highly pro-active and dynamic entity. This transformation has
been largely brought about by the large dose of liberalization and economic
reforms that allowed banks to explore new business opportunities rather than
generating revenues from conventional streams (i.e. borrowing and lending).
The banking in India is highly fragmented with 30 banking units contributing to
almost 50% of deposits and 60% of advances.

The Structure of Indian Banking:


The Indian banking industry has Reserve Bank of India as its Regulatory
Authority. This is a mix of the Public sector, Private sector, Co-operative banks
and foreign banks. The private sector banks are again split into old banks and
new banks.

BANKING IN INDIA

Central Bank

Reserve Bank of India

State Bank of India, Allahabad Bank, Andhra Bank,


Bank

of

Baroda,

Bank

of

India,

Bank

of

Maharastra,Canara Bank, Central Bank of India,


Corporation Bank, Dena Bank, Indian Bank, Indian
overseas Bank,Oriental Bank of Commerce, Punjab and
2

Sind Bank, Punjab National Bank, Syndicate Bank,


Nationalised Banks

Union Bank of India, United Bank of India, UCO


Bank,and Vijaya Bank.
Bank of Rajastan, Bharath overseas Bank, Catholic
Syrian Bank, Centurion Bank of Punjab, City Union
Bank, Development Credit Bank, Dhanalaxmi Bank,
Federal Bank, Ganesh Bank of Kurundwad, HDFC
Bank, ICICI Bank, IDBI, IndusInd Bank, ING Vysya

Bank, Jammu and Kashmir Bank, Karnataka Bank


Private Banks

Limited, Karur Vysya Bank, Kotek Mahindra Bank,


Lakshmivilas Bank, Lord Krishna Bank, Nainitak Bank,
Ratnakar Bank,Sangli Bank, SBI Commercial and
International Bank, South Indian Bank, Tamil Nadu
Merchantile Bank Ltd., United Western Bank, UTI
Bank, YES Bank.

OBJECTIVES OF PROJECT

Gathering the knowledge about the different loan products in Dena

Bank.
To Study criteria for corporate loan.
To study condition for loan approval.

SCOPE OF THE STUDY


Using the theoretical knowledge in application and understanding thing
practically.
Serve the organization.

RESEARCH METHODOLOGY

DATA COLLECTION METHOD


To fulfill the objectives of my study, I have taken both into considerations viz
primary & secondary data.

Primary Data :

Personal interviews
Questioneries
Survey,etc

Secondary data: The data is collected from the Magazines, Annual reports,
Internet, Text books.
The various sources that were used for the collection of secondary data are

Internal files & materials.


www.denabank.co.in

LIMITATIONS
1. The time constraint was a limiting factor, as more in depth analysis could not
be carried.
2. Some of the information is of confidential in nature that could not be revealed
for the study.

DENA BANK

INTRODUCTION

Dena Bank is one of the earliest nationalized banks in India.


Since its inception, the bank has become a renowned name in the
field of banking and financial solutions. It istrusted all over the
country by thousands of consumers. By being a customer of
DenaBank, one can easily enjoy financial stability and also get good
returns on the servicesand the financial solutions.
Dena Bank was founded on 26th May, 1938 by the family of Devkaran Nanjee
under the name Devkaran Nanjee Banking Company Ltd. It became a Public
Ltd. Company inDecember 1939 and later the name was changed to Dena Bank
Ltd.
In July 1969 Dena Bank Ltd. along with 13 other major banks was
nationalized and isnow a Public Sector Bank constituted under the
Banking Companies (Acquisition &Transfer of Undertakings) Act,

1970. Under the provisions of the Banking Regulations Act 1949, in


addition to the business of banking, the Bank can undertake other
businessas specified in Section 6 of the Banking Regulations Act, 1949.
History:
Dena Bank was founded on 26th May, 1938 by the family of Devkaran
Nanjee under the name Devkaran Nanjee Banking Company Ltd.
It became a Public Ltd. Company in December 1939 and later the name was
changed to Dena Bank Ltd.
In July 1969 Dena Bank Ltd. along with 13 other major banks was
nationalized and is now a Public Sector Bank constituted under the Banking
Companies (Acquisition & Transfer of Undertakings) Act, 1970. Under the
provisions of the Banking Regulations Act 1949, in addition to the business of
banking, the Bank can undertake other business as specified in Section 6 of the
Banking Regulations Act, 1949.
Dena Bank has been the first Bank to introduce:

Minor Savings Scheme.

Credit card in rural India known as "DENA KRISHI SAKH PATRA"


(DKSP).

Drive-in ATM counter of Juhu, Mumbai.

Smart card at selected branches in Mumbai.

Customer rating system for rating the Bank Services.

V I S I O N M I S S I O N AN D VAL U E

Vision
Dena Bank will emerge as the most preferred Bank of customer choice in its
area of operations, by its reputation and performance.

Mission

Dena Bank will provide its

Customers - premier financial services of great value,


Staff - positive work environment and opportunity for growth and
achievement,
Shareholders - superior financial returns.
Community - economic growth.

VALUES:

Excellence in customer service


Profit orientation
Belonging commitment to Bank
Risk taking and innovative
Team playing

ABOUT LOGO

The logo of Dena Bank depicts Goddess Lakshmi, the Goddess of Wealth,
according to Hindu mythology.
It was the desire of the founding fathers of the Bank that the Bank should be a
symbol of prosperity for all its clients, and the logo represents this promise.
The contemporary 'D' in the logo reflects the dynamism, dedication and
the drive towards customer satisfaction.

ORGANISATION STRUCTURE

BENEFITS GIVEN BY THE BANNK

PRODUCTS AND SERVICES

PRODUCTS
Dena Bank renders varieties of services to customers through the following
products:

Loan Product
o
o
o
o
o

Dena Niwas Housing Finance Scheme


Dena Vidya Laxmi Educational Loan Scheme
Dena Gold Loan Scheme
Dena Trade Finance Scheme
Dena Suvidha (Personal Loan) Scheme

SERVICES

Core Banking Solution


D e n a ATM S e r v i c e
Internet Banking

Mobile Banking
Phone Banking
Demat Service
D i r e c t Tax C o l l e c t i o n
I n d i r e c t Tax
Distribution Of Mutual Fund

LOAN PRODUCTS
1) DENA NIWAS HOUSING FINANCE SCHEME:
The doorway to your Dream Home
A Loan for different needs
You can avail of Dena Niwas Home Loan to purchase a plot, construct a house,
buy a ready built house or buy one under construction. The loan even helps you
build an extension to your existing house or purchase a house that is up to 50
years old provided the remaining life of the house is more than 25 years.
Besides you can take this loan for repairs and upgradation, which includes the
cost of fixtures, POP works, retiling, fittings etc.
It even gives you the option to shift an existing home loan with any other Bank
or Financial Institution.
You are eligible if:

You are a major individual, resident or non-resident, having a regular


source of income.

Your age on the maturity of the loan is less than retirement age if you are
a salaried employee & below 65 years, if you have a business.

The total deductions do not exceed 60% of your gross income, including
the loan installment of the proposed loan.

Spouses/Co-applicants income can be clubbed for enhanced eligibility.


Loan Amount
Up to Rs.200 lakhs for the purchase/construction of a house.
Up to Rs.10 lakhs for renovation/upgradation.
Margin
1) Loans less than Rs.20 lakhs : 10% of cost of the house property (excluding
stamp duty, registration charges, etc).
2) Rs.20 lakhs & above : 20% of cost of the house property (excluding
stampduty, registration charges, etc)
Rate of Interest
Please Check out the Interest Rates Section to find latest Interest Rates
applicable.
Interest Charged on Daily Reducing Balance
No Prepayment Charges
Loan Limit of Rs 200 Lacs.

Purchase of House upto 50 years old allowed


Floating Rate Linked to Base Rate
Repayment
Upto 25 years-for the purchase of a new flat/house/construction/extension.
Upto 10 years- for repairs, renovation and upgradation.
Security
Simple equitable mortgage of the house/flat/apartment on which the loan is
availed.
Process Fees:
0.50% of sanctioned limit.
2) DENA EDUCATION LOAN :
Education Loan - Government interest subsidy scheme
for Economically Weaker Sections (EWS)
Coverage :
EWS with upper parental income of Rs.4.50 lakhs per annum.
For recognized Technical / Professional Courses in India after Class XII as
approved by Ministry of Human Resources Department, Government of India.
Certification of income by Designated authority in the prescribed format.

Applicable from academic year 2009-10.


Interest Subsidy during moratorium period (Course period + 6 months / 1
year).
The Topper for your childrens Higher Education
Ensure a bright future for your children. Provide them with the best of higher
education in India or abroad. Avail Dena Vidya Laxmi Educational Loan.
You are eligible if:
You are an Indian national and have secured admission to a professional or
technical course in an Indian or Foreign university.
Simply walk in with the marksheet of the qualifying exam. and proof of
admission.
Course Eligibility
Study in India:
Graduation courses, Post-Graduation courses, Masters & PhD, Professional
courses.
Study 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.
Loan Amount
Upto Rs.10 lakhs for studies in India.
Upto- Rs. 20 lakhs for studies abroad.
Loan takes care of :
Fee payable to colleges/ schools/ hostels
Examination/ Library/ Laboratory fees.
Purchase of books, equipment, instruments and uniforms.
Passage fare for travel abroad.
Purchase of computers needed to complete the course.

Any other expense to complete the course like study tours, project work,
thesis etc.
Margin
Upto Rs. 4 lakhs- NIL for study in India and abroad.
Above Rs. 4 lakhs- 5% for study in India and 15% for study abroad.
Rate of Interest
Please Check out the Interest Rates Section to find latest Interest Rates
applicable.
1% interest concession if interest is serviced as and when due during the
moratorium period when repayment holiday is specified.
SIMPLE INTEREST CHARGED DURING MORATORIUM PERIOD.
Process Fees
Rs.1000/- for studies abroad which is refundable on availing the limit.
Repayment
For loans upto Rs.7.50 lakhs

: Upto 10 years

For loans above Rs.7.50 lakhs : Upto 15 years

3)DENA SUVIDHA (PERSONAL LOAN) SCHEME:


Live your Dreams
Dena Suvidha is the ideal way to fulfill personal needs of your family. Be it to
finance a marriage or family function. To travel or celebrates a festival. For
medical treatment or educational purposes. Or simply a vacation. Even an

unforeseen event. Dena Suvidha (Personal) Loan is always there for all your
needs.
You are eligible if:
You are a permanent employee between 24 to 55 years having worked for at
least 2 years in a Govt. or PSU/ reputed organization.
You have a gross monthly income of at least Rs. 15,000/-. Income of any other
earning member ( co-applicants) can be clubbed for enhanced eligibility.
You can have a salary disbursement arrangement with us or provide an
undertaking form your employer.
Loan Amount
Minimum- Rs. 15,000/Upto- Rs. 1 lakh or 9 times the net monthly income whichever is less.
Margin
NIL
Rate of Interest
Please Check out the Interest Rates Section to find latest Interest Rates
applicable.

INTEREST CHARGED ON DAILY REDUCING BALANCE


NO PREPAYMENT CHARGES

Process Fees
1% of loan amount
Repayment
Upto 36 EMIs
Mode of disbursement
By credit to your Savings Bank account.

4)Dena Trade Finance Scheme:

You are eligible if:


You are a commodity trader, stockist or dealer registered under sales tax.
You are a permanent resident of the city (If not permanent resident, property
offered as collateral security is in your name and located at the same location).
Loan Amount
Minimum- Rs. 2.50 lakhs
Upto- Rs. 200 lakhs
CC Limit upto 20 % of your projected turnover.
Non-fund based limits upto 25% of eligible limit on the basis of projected
turnover
Term Loan upto 20% of working capital eligibility
In case of disruption of the working capital cycle, 40 % of collateral security
can be included to calculate Drawing Power.
Nature of Limit
Cash Credit (hypothecation), Term Loan (Secured), Non-fund based limits
(Bank Guarantee & LC)
Margin
CC Hypothecation - 25% stock, 50% of book debts
Non-fund based limits (BG & LC) - 25%
Term Loan - 25%

Rate of Interest
Please Check out the Interest Rates Section to find latest Interest Rates
applicable
INTEREST CHARGED ON DAILY REDUCING BALANCE
NO PREPAYMENT CHARGES
Security
CC limit : Hypothecation of Stock and Book Debts
Term Loans : Hypothecation of security created out of term loan
Equitable mortgage of immovable property or any other liquid assets (other than
equity shares, debentures) with minimum realisable market value of 100% of
sanctioned limit as collateral
Process Fees
CC Hypothecation - As applicable for normal CC / Hypothecation account
Term Loan - 1.25% of the limit sanctioned. At the time of review, review fees of
0.10% of the outstanding amount
Commission on Non-fund based limits (BG & LC) to be charged as per Bank's
extant guidelines.
Commitment Charges as applicable for normal CC Hypothecation accounts as
prescribed in Loan Policy.
Repayment
CC limit / Non-fund based limit : To be reviewed on yearly basis

Term Loan : 5 years (maximum)


5) DENA GOLD LOAN SCHEME:
Purpose
Any personal purpose
Eligiblity
1. The scheme is open for all customers existing and new (KYC norms to be
adhered to)
2. Only individuals who have attained majority are eligible

Nature of Loan
Demand Loan
Loan Amount
The loan amount will be linked to the value of gold jewellery/ gold coin/ gold
(other than bullion) to be pledged.
Minimum Rs.10000/- & Maximum Rs. 5.00 lacs
Margin
Margin to be maintained @ 30% of the value of the Gold jewellery / gold coin /
gold (other than bullion) to be pledged.
Rate of Interest

Please Check out the Interest Rates Section to find latest Interest Rates
applicable.

Process Fees
Upto Rs.50,000/- - Nil
Above Rs.50,000/- : 0.75% of sanctioned limit.
Charges of appraiser are to be borne by the borrower.
Repayment
Up to 24 months, to be repaid in EMIs or quarterly/ half-yearly/ annual
installments or on lump sum basis, as may be agreed uponby the borrower/s. In
case of repayment in installments other than EMIs, interest debited in the loan
account from time to time is to be paid as and when debited.

BACKGROUND OF CREDIT RISK MANAGEMENT


CREDIT:
The word credit comes from the Latin word credere, meaning trust. When
sellers transfer his wealth to a buyer who has agreed to pay later, there is a clear
implication of trust that the payment will be made at the agreed date. The credit
period and the amount of credit depend upon the degree of trust.
Credit is an essential marketing tool. It bears a cost, the cost of the seller having
to borrow until the customers payment arrives. Ideally, that cost is the price but,
as most customers pay later than agreed, the extra unplanned cost erodes the
planned net profit.
RISK :
Risk is defined as uncertain resulting in adverse out come, adverse in relation to
planned objective or expectation. It is very difficult o find a risk free
investment. An important input to risk management is risk assessment. Many
public bodies such as advisory committees concerned with risk management.
Risk analysis and allocation is central to the design of any project finance, risk
management is of paramount concern. Thus quantifying risk along with profit
projections is usually the first step in gauging the feasibility of the project. once
risk have been identified they can be allocated to participants and appropriate
mechanisms put in place.

TYPES OF FINANCIAL RISKS


MARKET RISK:

Market risk is the risk of adverse deviation of the mark to market value of the
trading portfolio, due to market movement, during the period required to
liquidate the transactions.

OPERTIONAL RISK:
Operational risk is one area of risk that is faced by all organization s. More
complex the organization more exposed it would be operational risk. This risk
arises due to deviation from normal and planned functioning of the system
procedures, technology and human failure of omission and commission. Result
of deviation from normal functioning is reflected in the revenue of the
organization, either by the way of additional expenses or by way of loss of
opportunity.
Credit rating is the process of assigning a letter rating to borrower indicating
that creditworthiness of the borrower.
Rating is assigned based on the ability of the borrower (company). To repay the
debt and his willingness to do so. The higher rating of company the lower the
probability of its default.

CREDIT RISK:
Credit risk is defined as the potential that a bank borrower or counterparty will
fail to meet its obligations in accordance with agreed terms, or in other words it
is defined as the risk that a firms customer and the parties to which it has lent
money will fail to make promised payments is known as credit risk The
exposure to the credit risks large in case of financial institutions, such
commercial
banks when firms borrow money they in turn expose lenders to credit risk, the
risk that the firm will default on its promised payments. As a consequence,

borrowing exposes the firm owners to the risk that firm will be unable to pay its
debt and thus be forced to bankruptcy.
Credit rating helps the bank in making several key decisions regarding credit
including
1. whether to lend to a particular borrower or not; what price to charge?
2. what are the product to be offered to the borrower and for what tenure?
3. at what level should sanctioning be done, it should however be noted that
credit rating is one of inputs used in credit decisions.
There are various factors (adequacy of borrowers, cash flow, collateral
provided, and relationship with the borrower) Probability of the borrowers
default based on past data.

CREDIT FILES:Its the file, which provides important source material for loan supervision in
regard to information for internal review and external audit. Branch has to
maintain separate credit file compulsorily in case of Loans exceeding Rs 50
Lakhs which should be maintained for quick access of the related information.
Contents of the credit file: basic information report on the borrower
milestones of the borrowing unit
credit approval memorandum
financial statement
copy of sanction communication
security documentation list
Dossier of the sequence of events in the accounts
Collateral valuation report
Latest ledger page supervision report
Half yearly credit reporting of the borrower

Quarterly risk classification


Press clippings and industrial analysis appearing in newspaper
Minutes of latest consortium meeting
Customer profitability
Summary of inspection of audit observation
Credit files provide all information regarding present status of the loan account
on basis of credit decision in the past. This file helps the credit officer to
monitor the accounts and provides concise information regarding background
and the current status of the account

STUDY ON CREDIT POLICY

The term credit policy is used to refer to the combination of three decision
variables: (1) credit standards, (2) credit terms, and (3) collection efforts, on
which the financial manager has influence.
(1) Credit Standards:
Credit Standards are criteria to decide the types of customers to whom goods
could be sold on credit. If a firm has more slow-paying customers, its
investment in accounts receivable will increase. The firm will also be exposed
to higher risk of default.
(2) Credit Terms:
Credit Terms specify duration of credit and terms of payment by customers.
Investment in accounts receivables will be high if customers are allowed
extended time period for making payments.
(3) Collection Efforts:
Collection efforts determine the actual collection period. The lower the
collection
period, the lower the investment in accounts receivable and higher the collection
period, the higher the investment in accounts receivable.

The main objectives of Banks Credit Policy are:


A
balanced growth of the credit portfolio which does not compromise safety.

Adoption

of a forward-looking and market responsive approach for moving


into profitable new areas of lending whish emerge, within the pre determined
exposure ceilings.
Sound

risk management practices to identify, measure, monitor and control


credit risks.
Maximize

interest yields from the credit portfolio through a judicious


management of varying spreads for loan assets based upon their size, credit
rating and tenure
Ensure

due compliance of various regulatory norms, including CAR, Income


Recognition and Asset Classification.
Accomplish

balanced deployment of credit across various sectors and


geographical regions.
Achieve

growth of credit to priority sectors / sub sectors and continue to


surpass the targets stipulated by Reserve Bank of India.
Use

pricing as a tool of competitive advantage ensuring however that


earnings are protected.

DATA ANALYSIS AND INTERPRETATION


1) Data analysis based on loan product that are sold in jun 2013:
product
dena education loan
Dena Gold Loan Scheme
Dena Trade Finance Scheme
Dena Suvidha (Personal Loan) Scheme
Dena Niwas Housing Finance Scheme

Jun-13 (rs. In lakhs)


50
15
40
80
150

160
140

dena education loan

120

Dena Gold Loan


Scheme

100

Dena Trade Finance


Scheme

80

Dena Suvidha
(Personal Loan)
Scheme

60
40

Dena Niwas Housing


Finance Scheme

20
0
41438

Interpretation:
In the particular month (june 2013) the dena housing finance scheme was
highly adopted as compare to other scheme .

2) Data analysis based on loan product that are sold in july 2013:

product
dena education loan
Dena Gold Loan Scheme
Dena Trade Finance Scheme
Dena Suvidha (Personal Loan) Scheme
Dena Niwas Housing Finance Scheme

July-13 (rs. In lakhs)


40
10
33
70
100

100
90

dena education loan

80

Dena Gold Loan


Scheme

70

Dena Trade Finance


Scheme

60
50

Dena Suvidha
(Personal Loan)
Scheme

40
30
20

Dena Niwas Housing


Finance Scheme

10
0
41456

Interpretation:
In the particular month (july 2013) the sales volume of dena housing finance
scheme was decreases as compare to other scheme .

HYPOTHESIS
ANOVA: single factor
Perticulars

Yes

Awareness About Dena Bank


Awareness about loan products
Simplicity of loan process
satisfied with Adherance
satisfied with Disbursement
would you like to suggest any of your friend for taking loan
loan provided by the bank are comparable to other bank
are you satisfied with the overall loan service

No
40
39
21
18
33
12
20
29

summary
Groups
Yes

Count

Sum

Average

Variance

212

26.5

106

0
1
19
22
7
28
20
11

No

108

Source of variation
Between Groups

SS
676

DF
1

MS
676

Within Group
Total

1484
2160

14
15

106

13.5

106

F
6.377358

P-value
0.024249

F crit
4.60011

Interpretation:
In the given data the P value= 0.024249 is less than 0.5 in the that is positive
factor for given data.

CORRELATION AND COEFFICIENT FACTOR


Sr.No
PRODUCT
.
1
Awareness About Dena Bank
2
Awareness about loan products
3
4
5
6
7

1
0.9 1
5
0.0 0.1
Simplicity of loan process
5
satisfied with Adherance
-0.1 0.0
5
satisfied with Disbursement
0.6 0.6
5
loan provided by the bank are comparable 0
0.0
to other bank
5
are you satisfied with the overall loan 0.4
service
5

Interpretation:

0.4

1
0.
3
0.
1
0.
2
0

1
1
-0.6

0.0
5

0.3
5

0.5

0.2
5

In correlation and coefficient if the value of particular factor increase


same on the other hand value of other factor also increase and vice-versa.
In the above table the satisfaction level of overall loan service increase on the
other hand the level of Awareness about loan products also increase.

FINDINGS
D
ENA BANK is granting credit in all sectors in an Equated Monthly
Installments so that any body can borrow money easily.
Project findings reveal that DENA BANK is lending credit or
sanctioning more loans.
D
ENA BANK is expanding its Credit in the following focus areas:

Dena Educational Loan Scheme


Dena Gold Loan Scheme
Dena Trade Finance Scheme
Dena Suvidha (Personal Loan) Scheme
Dena Niwas Housing Finance Scheme

Credit risk management process of Dena bank used is very effective as


compared with other banks.

SUGGESTIONS AND RECOMMENDATIONS


The Bank should keep on revising its Credit Policy which will help Banks
effort to
correct the course of the policies

Dena bank is widely spread in Gujrat as compared to other states of


india, so Dena Bank should look at aggressively expanding in the other
states of the country.

Dena bank should open their branches in foreign countries too which
would help them to expand their business like some of their peer group
banks like SBI,BOB etc .
Instead of annual recruitment policy Dena bank should switch to half
yearly recruitment policy.
They should have more aggressive Marketing strategies to promote their
services in different offices,organizations etc.

CONCLUSION
The bank has focused more on rural areas.
The

bank

has

started

various

schemes

for

rural

population so as to help them mainly in agriculture


s e c t o r.
Bank plans to grow the business mix and targeting the
value of Rs. 360 crores which is reflected in Goal Post
2013.
Dena Bank is taking various steps to achieve this goal.

BIBLIOGRAPHI
WEB SITES
1. www.dena bank.co.in
2. www.rbi.org

BANKS INTERNAL RECOREDS:


1. Annual Reports of DENA BANK (2012-2013)
2. DENA BANK Manuals

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