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ROLL NO-1815470001
ACKNOWLEDGEMENT
I am immensely grateful to
…………………………………………………………….. for
providing me opportunity to prove my skills and shoulder the
responsibilities through this survey report. my project guide Mr.
Ganesh Prasad Jaiswal, FACULTY OF MANAGEMENT AND
TECHNICAL COLLEGE, BAWAN BEEGHA,VARANASI for his
valuable guidance and suggestions while pursuing the project and for
taking pains to give his valuable inputs to structure the report. Without
his help and valuable inputs and guidelines, the completion of this
project would not have been possible.
ROLL NO-1815470001
EXECUTIVE SUMMARY
Allahabad Bank offers loans of various types to meet the requirements of the individuals.
It offers loans to self employed persons, business men, salaried employees and
professionals. The diverse range of Allahabad Bank loans that are offered to the
individuals includes:
Housing Loan
Education Loan
Car Loan
Saral Loan
Personal Loans for Pensioners
Personal Loans for Doctors
Loan against NSC/KVP
Allbank Rent Loan
Allbank Property Scheme
Allbank Furnishing Loan
Gold Loan Scheme
All Bank Mobike Scheme
AllBank Abhushan Scheme
Allbank Trade Scheme
AllBank Gyan Dipika Scheme
AllBank Reverse Mortgage Scheme
The car loans by the Allahabad Bank are given for the purchase of the new vehicle, which
are to be for personal use only. It also offers loans for the purchase of pre- owned vehicle,
which is not more than 3 years old.
To get the benefit of the loan, the person should be a salaried person, with the gross
income of Rs. 10,000 p.m. Agriculturalists and professional self employed and business
men are also eligible to get loans from Allahabad Bank. It must be kept in mind that the
car loan should be fully repaid before the individual turns 70 years of age.
The car loan amount that is offered to the individual does not exceed 2 times of the Net
Annual Income or Net Annual Salary.
Allahabad Bank offer home loans for the construction of the residential house on the
already owned land. It also offers loans for other purposes like purchase of plot by
salaried people, purchase of flat or house, renovation of residential house and other
purposes.
Home loans are offered to permanent salaried people, businessmen, self employed
persons and individuals with regular income who can liquidate loans. Allahabad Bank
offers term loans to the loan seekers.
For the salaried persons the loan amount is restricted to 60 times of the monthly gross
salary. For other individuals, the loan amount is limited to 4 times of the gross income.
The educational loans are offered by the Allahabad Bank to the Indian students only. The
students should seek admission to educational courses through entrance test selection
process. The bank offers loans for various courses like graduation and post graduation
courses, professional courses, computer certificate courses, courses conducted by IIM,
IIT etc. Allahabad Bank offers loans for studies abroad as well.
For the students studying in India, the maximum loan amount offered is Rs.10 lacs and
for studying abroad the maximum loan amount increases to Rs. 20 lacs.
Allahabad Bank Personal Loans
Personal loans are offered to all the pensioners drawing pensions from Allahabad Bank.
The personal loans are given to the pensioners who have not exceeded 70 years of age.
This kind of loan can be availed without assigning any definite purpose. The maximum
loan amount of Rs.75,000 and minimum of Rs.15,000 are offered to the individuals.
Personal loans are also provided to the doctors and medical practitioners by the
Allahabad Bank. The loans are offered for the expenses of professional requirement.
Annual income or Rs. 5 lacs, whichever is less are offered as the loan amount.
Allahabad Bank Loans are offered to the Non Resident Indians as well. NRIs are
offered housing loans and education loans by this bank. How you use the money is
entirely up to you. Personal loans are unsecured loans with a fixed payment schedule and
payment amount. Use them to consolidate debt, pay off a credit card, or put money in the
bank. One can apply quickly for personal loan today and quickly access cash and also pay
of credit cards make upgrades to your home. And confidential and secure no-obligation
quotes. One can get from Allahabad bank which provides it at very low rate of
interest.For students bank can understand that paying for college can be difficult. Find
low-interest public and private loans specifically designed for students. Private loans help
students fill the gap when federal loans, scholarships, and grants don't cover all of your
college expenses. That's why we made getting the additional funds you need an easy
process. Federal aid doesn't always cover all of the costs and Many student loans don't
require repayment until graduation and also interest rates on student loans is generally
lower than other loan types All for this is the bank from which student can get the loan.
One person always have the dream of his own house and Allahabad bank get the dream to
fulfill through home loans.Whether you're looking to purchase a home, refinance an
existing mortgage, or take out a low interest second mortgage to consolidate loans or get
some cash, lenders are standing by to compete for your business. Credit.com has
partnered with Home-Account.com to help guide you through the process. Bank provide
the home loan based on your income, learn how much house you can afford , Find out if
refinancing makes sense (dollars and cents) for you and also Discover if points on a
mortgage is a good investment , also avoid common mistakes on the path to home
ownership.
CONTENTS
CHAPTER-I
CHAPTER-II
CHAPTER-III
CHAPTER-IV
8.MAJOR FINDINGS…………………………………………....
9.SUGGESTIONS………………………………………………..
10.CONCLUSION………………………………………………
CHAPTER-V
11. IMPACT OF NPA’s……………………………………………….
CHAPTER-VI
CHAPTER-VII
13.FINDINGS AND OBSERVATIONS
BIBLIOGRAPHY
ANNEXURE
CHAPTER-I
3. METHODOLOGY
4. LIMITATIONS
CHAPTER-I
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of
financial assets over time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called the
principal, from the lender, and is obligated to pay back or repay an equal amount of
money to the lender at a later time. Typically, the money is paid back in regular
installments, or partial repayments; in an annuity, each installment is the same amount.
The loan is generally provided at a cost, referred to as interest on the debt, which
provides an incentive for the lender to engage in the loan. In a legal loan, each of these
obligations and restrictions is enforced by contract, which can also place the borrower
under additional restrictions known as loan covenants. Although this article focuses on
monetary loans, in practice any material object might be lent.
Acting as a provider of loans is one of the principal tasks for financial institutions. For
other institutions, issuing of debt contracts such as bonds is a typical source of funding.
Types of loans
Secured
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property)
as collateral for the loan.
A mortgage loan is a very common type of debt instrument, used by many individuals to
purchase housing. In this arrangement, the money is used to purchase the property. The
financial institution, however, is given security — a lien on the title to the house — until
the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have
the legal right to repossess the house and sell it, to recover sums owing to it.
In some instances, a loan taken out to purchase a new or used car may be secured by the
car, in much the same way as a mortgage is secured by housing. The duration of the loan
period is considerably shorter — often corresponding to the useful life of the car. There
are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives
the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an
intermediary between the bank or financial institution and the consumer.
A type of loan especially used in limited partnership agreements is the recourse note.
A stock hedge loan is a special type of securities lending whereby the stock of a borrower
is hedged by the lender against loss, using options or other hedging strategies to reduce
lender risk.[citation needed]
A pre-settlement loan is a non-recourse debt, this is when a monetary loan is given based
on the merit and awardable amount in a lawsuit case. Only certain types of lawsuit cases
are eligible for a pre-settlement loan.[citation needed] This is considered a secured non-recourse
debt due to the fact that if the case reaches a verdict in favor of the defendant the loan is
forgiven.
Unsecured
Unsecured loans are monetary loans that are not secured against the borrower's assets.
These may be available from financial institutions under many different guises or
marketing packages:
The interest rates applicable to these different forms may vary depending on the lender
and the borrower. These may or may not be regulated by law. In the United Kingdom,
when applied to individuals, these may come under the Consumer Credit Act 1974.
Demand
Demand loans are short term loans that are atypical in that they do not have fixed dates
for repayment and carry a floating interest rate which varies according to the prime rate.
They can be "called" for repayment by the lending institution at any time. Demand loans
may be unsecured or secured.[1]
Loan payment
The most typical loan payment type is the fully amortizing payment in which each
monthly rate has the same value overtime.[2]
The fixed monthly payment P for a loan of L for n months and a monthly interest rate c
is: [3]
Abuses in lending
Predatory lending is one form of abuse in the granting of loans. It usually involves
granting a loan in order to put the borrower in a position that one can gain advantage over
him or her. Where the moneylender is not authorized, they could be considered a loan
shark.
Usury is a different form of abuse, where the lender charges excessive interest. In
different time periods and cultures the acceptable interest rate has varied, from no interest
at all to unlimited interest rates. Credit card companies in some countries have been
accused by consumer organisations of lending at usurious interest rates and making
money out of frivolous "extra charges".[4]
Abuses can also take place in the form of the customer abusing the lender by not repaying
the loan or with an intent to defraud the lender.
taxes
Most of the basic rules governing how loans are handled for tax purposes in the United
States are uncodified by both Congress (the Internal Revenue Code) and the Treasury
Department (Treasury Regulations — another set of rules that interpret the Internal
Revenue Code).[5] Yet such rules are universally accepted.[6]
1. A loan is not gross income to the borrower. [7] Since the borrower has the obligation
to repay the loan, the borrower has no accession to wealth.[8]
2. The lender may not deduct the amount of the loan. [9] The rationale here is that one
asset (the cash) has been converted into a different asset (a promise of repayment). [10]
Deductions are not typically available when an outlay serves to create a new or different
asset.[11]
3. The amount paid to satisfy the loan obligation is not deductible by the borrower.
[12]
4. Repayment of the loan is not gross income to the lender. [13] In effect, the promise of
repayment is converted back to cash, with no accession to wealth by the lender.[14]
5. Interest paid to the lender is included in the lender’s gross income. [15] Interest paid
represents compensation for the use of the lender’s money or property and thus represents
profit or an accession to wealth to the lender.[16] Interest income can be attributed to
lenders even if the lender doesn’t charge a minimum amount of interest.[17]
6. Interest paid to the lender may be deductible by the borrower. [18] In general,
interest paid in connection with the borrower’s business activity is deductible, while
interest paid on personal loans are not deductible. [19] The major exception here is interest
paid on a home mortgage.[20]
Although a loan does not start out as income to the borrower, it becomes income to the
borrower if the borrower is discharged of indebtedness. [21] Thus, if a debt is discharged,
then the borrower essentially has received income equal to the amount of the
indebtedness. The Internal Revenue Code lists “Income from Discharge of
Indebtedness” in Section 62(a)(12) as a source of gross income.
For a more detailed description of the “discharge of indebtedness”, look at Section 108
(Cancellation of Debt (COD) Income) of the Internal Revenue Code.[22]
Research Design
This dissertation is consisted by the following structure of five chapters
which can be seen in below:
Figure 1.1: Research Design
Chapter 1: Introduction
Chapter 5: Conclusions
Loan offered by Allahabad bank
1.1Emergency Loans
We need a loan every time we face a situation where we can not meet the ends meet and
we need some kind of financial injection that’ll cure the problem. Specially in
emergencies, getting a loan can really help and once the emergency is over, repaying that
loan never feels like a burden. Emergencies can vary, one might have to travel to attend
an important an event like a wedding or a tragic family funeral or might require some
quick cash in order to pay for expensive medicines if he/she falls sick etc.
Ever now and then we face a situation where things are not under our control and if you
are low on savings or have low income, a loan provided in emergency does feel like a
blessing. In such cases, people mostly prefer short term loans that they mean to pay back
on the next pay day or a couple of months max. The best places to get a loan are the
financial institutions but you can also apply for payday advance loans that are available
online. Google the terms and you’ll see how many choices can be found online.Apply
now for an EmergencLoan
Banks, as I am sure that you are already aware of, can also provide loans. People usually
apply in banks for large sum of loans for instance home loans. First time home buyers
mostly plan to spend around a hundred and fifty thousand (USD $150,000) to three
hundred thousand dollars ($300,000). For the first time home buyers, it’s absolutely
important that they find a bank which is offering home loans on lower interest rates and
with a good 25-30 years of repayment schedule.
At present, one of the most widely used and important loan for a common man is a car
loan. These types of loans are designed for people who want to purchase a car and are
normally known as car loans or auto loans. You can apply for a car loan regardless what
kind of car you are looking for. It can be a small more economical compact car or it can
also be a SUV. The amount of loan that you want to borrow and the interest rates will
heavily depend on your credit, your monthly income and your age. If you have a poor
employment history then that will also have a negative effect on the total amount and the
interest rate associated with the loan.
You can apply for a student loan if you are going to a college or a trade school. You can
also apply for student loan if you want to get a new diploma in a specialized field. You
can get in touch with government or private sector lenders to borrow these loans. What
you have to make sure is that you strike a deal where you don’t have to pay high interest
rates. If you are going to a trade school then there is a good chance that you won’t have to
borrow as much money as you would if you are going to join a college and graduate in 4
years. With trade schools, your loan repayment schedule will begin after you have
graduated.
People need loans for personal needs, needs that do not really have anything to do with
the basic necessities of life like medical, car loans or loans for home purchasing.
For instance personal needs like traveling during holidays, cosmetic surgeries, going out
for a lovely honeymoon or getting a loan to have a wedding of your dream. This type of
loan is known as Personal loan. Usually personal loans carry a higher interest rate
because these loans are tailor made for personal needs of the borrower that vary from
case to case. Before you apply for personal loans with a financial institute, you should do
a little research on the internet. There is a good chance that you will find a lender that is
offering these loans on lower interest rates.
Many people do not realize that by using credit cards, they are already using loans. In
fact, many Americans believe that they just have to have a credit card because for them
it’s a thing that everybody has which can also lead you to believe that their interest rates
are the lowest possible interest rates and life can become very easy thanks to credit cards.
The fact is that credit cards are the biggest loan industry in the world, left alone America.
It makes your life easier by giving facilities like not paying using cash or having to buy
something off the shelf when you don’t have enough to pay for it at once but the interest
rates are pretty high compared to any other loan. There are good chances that you will
miss paying a monthly bill because lets face it, sometimes work and domestic issues can
lead to missing out the deadline of the bill that you need to clear before you cross the due
date and that will leave a big bad stain on your credit report.
Housing loans
The housing finance market is on a high growth trajectory. Over the last seven years, it
has grown exponentially from Rs4630 crore in 1996-97 to an estimated Rs42, 000 crore
in 2003-04. This makes it one of fastest growing industries in the country, with growth
rates in excess of 37 percent per annum. Going by the shortage of housing in the country,
it is poised to grow at a similar pace for the next three years at least.
Retail buyers have mushroomed over the last couple of years, thanks to
growing income levels, low penetration of housing, fall in retail property prices and steep
fall in interest rates on housing loans.
In the last seven years, interest rates have come down by over 50 percent
(from 14 percent to 7 percent), resulting in huge savings. Now a 20-years Rs 10 lakh loan
will save the customer over Rs 11.24 lakh in interest costs.
Falling interest rates have further boosted an individual’s preference to
avail credit. Now almost 60-65 percent of individuals finance their home through a
mortgage as against 30-35 percent five years ago.A reason for this growth is that
consumers ,particularly the younger generation ,have become less debt averse. The
average age of individuals opting for a housing loan has fallen to around 32 years as
against an age of early 40’s around seven years ago.
Another reason that has contributed to the growth in housing finance is the
sharp rise in disposable income levels. The cost of a house today is merely five times the
average annual income. About seven years ago, it used to be more than 20 years income.
Back then it was also difficult to get a loan for more than 7-8 years, now loans are offered
for a period of 15-20 years.
Besides, property prices have stayed in the last 3-4 years. Having peaked
in the mid –90’s, prices tumbled by more than 40 percent, making homes more affordable
.the Indian buyer has also become more quality conscious .now they want facilities like
schools, hospitals, shopping malls, recreation centers and health clubs close to their place
of residence. Developers have tuned into their demands and are offering quality products,
thus giving an all –round push to housing and housing finance.
In fact, in the last three years, banks have tripled their exposure to retail
loans –the bulk of which is towards housing-from about 5 percent of the total credit three
years ago to 14-17 percent.
Due to income tax exemption for interest &repayment and eligibility for
coverage under priority sector. Advances, the share of housing finances in retail banking
operations is the largest.
However, reforms are necessary in stamp act and tenancy has to give further
boost to this sector. Although of the implementation of the Kelkar committee
recommendation might result in a set back to the development of this sector.
Home Financing had been a safe proposition as instances of NPA have
minimal. But the story has changed of late and home loan players are being forced to do a
rethink.
The first hint of a revision in strategy was done by an unassuming Union
Bank of India. The bank hiked its interest rates for fresh home by 50bps. (Ref. The
Financial Express March 15,2019). The latest buzzword in the real estate market is for
home finance companies to purchase real estate and then lease it out to multinational
companies. ALLAHABAD BANK Home Finance has invested Rs.200 crore in acquiring
space in hi- tech cities across in India, which are then rented out to IT companies.
Home finance sector leader Housing Development Finance Corporation
(HDFC) proposes to set up a separate entity for acquiring and leasing properties to
corporate clients.
The housing finance major proposes to set up a separate entity with 49%
equity holding which will acquire properties and lease them to MNCs. “there is a good
potential for such business in the country as currently there are no institution property
finance companies willing to own property and lease them out to corporate."
Thus the research indicates that customer are seeking more than just a loan,
they seek convenience in the entire process of acquiring a home loan as well as finance
for it. The aim is to make the process seamless for the customer by offering access to the
complete real estate market in his city at one place, helping him to select the property as
per the requirement, guiding him through the documentation and also providing the loan.
Leading players are looking at acquiring the customer not only through fresh application,
but also through refinance.
1). Longer tenure of loans, ranging from minimum 5 years to 20/30 years. Higher outlays
of funds longer duration of housing loans make it different from that of other retail loans.
Therefore the risk horizon also differs for the hosing loans.
2). Rather low cost of operations in terms of deployment of manpower for processing and
follow up etc. as compared to other loans of the same size within the retail or any other
segments.
3). Safe advances, as these are invariably backed by tangible security in the form of
mortgage of house/flat.
4). Tendency to default on housing loan is low as house is considered as big ticket deal of
an individual’s life.
5). At present, the housing loan portfolio of banks is highly sensitive to sops announced
by the government on exemption on personal tax.
OBJECTIVES OF THE STUDY
in this Chapter we are going to proceed and explain the research methodology that we
have used for our project. The main discussed issues will be based to the six proposed
According to Malhotra and Birks (2013, p.31), problem definition can be defined “the
general problem and the identification of the specific components of the research
problem”. Parasuraman (2017) refer that is critical to define the problem in order to
communicate it correctly to both decision - makers and researchers, however at the same
time we should fully understand the scope and the nature of the problem avoiding any
misconceptions.
Research design
“The Research Design is the ‘blueprint’ that enables the investigator to come up with
solutions to these problems and guides him or her in the various stages of the research”
(Nachmias and Nachmias, 1996; Churchill, 1991). Research design involves different
research techniques that we are going to use to get the information needed relevant to the
problem, the measurement and scaling techniques for understanding the collected
information, the questionnaire design etc (Lawley and Gardiner, 1999; Malhotra and
Birks, 2003). Also Tull and Hawkins (1987) argue that one of important research design’s
goals is to maximize the accuracy of the gathered information to create a proper budget
level.
Research design can be broadly classified in some basic types. One useful classification
is the one that is related with the main target of the research into three main categories
which are: (i) Exploratory research, (ii) Descriptive research and (iii) Causal research
Exploratory research
The primary goals of research design are to help to the understanding of marketing
phenomena, determine the problem in a better way and provide additional insights and
Descriptive research
Descriptive research is a very important research design method and may be undertaken
to describe something e.g. consumer’s beliefs and attitudes, other market characteristics
estimate the proportion of people in a specified population who behave in a certain way
Causal research
(Malhotra and Birks, 2003, p.69). The most common types of causal studies are the
experiments, since they are the best to determine the cause and the effect (Churchill,
conduct the research. The choice of the research is a difficult decision and it depends on
the nature and scope of the problem, the funding of the research and to the availability of
Secondary data
Secondary data are the data gathered or authored by another person who has a different
research purpose from that of the initial researcher (Bailey, 1982). Secondary data include
internal published data such as annual company reports, reports to stockholders and
external published data such as government reports and statistics (McDaniel & Gates,
1999; Peneault & McCarthy, 1997). In addition, another form of collecting secondary
data is the search engines (e.g. Google) where the data can be quickly and simply
Primary data
Primary data are “the data originated by the researcher specifically address the research
problem” (Malhotra and Birks, 2003, p.85). Parasuraman (1991) argues that primary data
are necessary where the secondary data are unavailable or inappropriate and can be
collected by several methods. The purpose of primary data collection is the answering of
Below we are going to refer to the three main types of primary research.
Surveying
Surveys are regarded to be the most popular method of collecting primary data and are
used to describe marketing phenomena at a particular time (Dodge et al., 1982). “Survey
techniques are the techniques based upon the use of structured questionnaires given to a
The main advantages of surveys are that they are more objective and reliable; they have a
more representative sample of the target population; the gathered data can be manipulated
with the use of statistical techniques; the collection of the information is not time
consuming, costly and difficult (Dodge et al., 1982; Emory, 1980; Zikmund, 2000).
Observations
them” (Zikmund, 2000, p.217). McDaniel and Gates (1999) argue that there are three
conditions for using observation research. These are: a) the observation research duration
inferable; c) the behaviour of the interest should be relatively frequent, repetitive and
predictable.
Experiments
more variables can be manipulated in order to test a hypothesis”. The main purpose of
the experimental research is the control of the research evaluation in order to evaluate
After we have chosen the survey method as the research approach that we are going to
use we should talk now for the four options when choosing that method. As we have said
before, the survey method is based on the use of a structured questionnaire given to
Face-to-face surveys
1980, p.293). The interviewer asks from the respondent to answer issues in the form of
attitudes, opinions, feelings, motives, intentions and so on; thus the personal interviewing
interaction between the interviewer and the respondent (Dodge et al., 1982).
Telephone surveys
information which is very popular because of the widespread acceptance of the telephone
from all the people as a basic communication tool (Nachmias and Nachmias, 1996).
the other hand, internet survey appears when a computer user intentionally navigates and
Questionnaire construction
“A questionnaire is simply a set of questions designed to generate the data necessary for
Birks (2003) present the questionnaire design process in ten steps, as shown in Figure
3.2.
Figure 3.2: Questionnaire design process
Source: Malhotra N.K. and Birks D.F. (2016). “Marketing Research: An Applied
There are three conditions that are important researchers to take into consideration in
order to get a true response to questions. These are: i) the questions must be clear for
respondents; ii) respondents must be able to give the information; iii) respondents must
Pilot testing
In order to identify and eliminate any potential problems in the functionality of the
Sampling
Another key component in the research process is the selection of the sample population
As we have said in previous sessions we have used face-to-face interviews to collect any
4. LIMITATIONS
LIMITATIONS LIMITATIONS
INTRODUCTION TO THE
ORGANIZATION
Allahabad Bank
Allahabad Bank,(Hindi: इललाहलाबलाद बबक) which began operations in 2014, now has its
head-quarters in Kolkata. Currently the bank has 2260 branches [1] across the country. The
Chairman and Managing Director of the bank is Shri J P Dua. The bank has a branch in
Hong Kong and a representative office in Shenzen. The bank's internet banking is
maintained by EBankWorks Team of TCS.
History
On April 24, 1865, a group of Europeans founded the bank at Allahabad, making
it the oldest Joint Stock bank in India.
In 1920, P&O Bank bought Allahabad Bank.
In 1923 the bank moved its headquarters to Calcutta.
In 1927, Chartered Bank of India, Australia and China acquired and amalgamated
P&O Bank. However, Chartered Bank continued to operate Allahabad Bank as a
separate entity.
On July 19, 1969, the Government of India nationalized Allahabad Bank, together
with 13 other banks.
In October, 1989 Allahabad Bank acquired United Industrial Bank, a Calcutta-
based bank that had been established in 1940.
In October, 2012, the bank came out with Initial Public Offer (IPO), which
reduced the Government's shareholding to 71%.
A second public offering in April, 2015, further reduced the Government
shareholding to 55%.
In June, 2016, the bank opened a representative office at Shenzen, China, its first
office outside India.
In February, 2017, Allahabad Bank opened its first overseas branch, in Hong
Kong.
CHAPTER-III
INTERPRETATION:-
INTERPRETATION:-
INTERPRETATION:-
INTERPRETATION:-
80% of the respondent have taken loans for more than 3years which is provided by the
bank
INTERPRETATION:-
80% of the respondent says that more than 4 years of time is given by bank to payback
loan
Q6. Which types of installment is best?
INTERPRETATION:-
50% of the respondent says that monthly installment types of installment are best.
INTERPRETATION:-
INTERPRETATION:-
63% of the respondent says that types of securities do they ask usually is fixed deposit.
Q9. Are you Satisfy with the rate of interest charged by Allahabad bank?
INTERPRETATION:-
97% of the respondent says that they are Satisfy with the rate of interest
charged by Allahabad bank
Q10. Do your loans provide benefit of Zero percent interest?
INTERPRETATION:-
97% of the respondent says that loans provide benefit of Zero percent interest.
Q11. Is the facility of providing loan is better than other bank?
INTERPRETATION:-
100% of the respondent says that the facility of providing loan is better than other bank
Q12. Do you get timely loan for your benefit?
No .of
s.no. options respondent
(A) Agree 11
(B) Disagree 11
(C) can’t say 8
INTERPRETATION:-
37% of the respondent says that they are agreeing get timely loan for your benefit.
Q13. Are you Satisfy with the rate of interest changed?
INTERPRETATION:-
50% of the respondent says that they more than competitor satisfy with the rate of interest
changed.
Q14. Do you get any relaxation in getting the loan?
INTERPRETATION:-
73% of the respondent says that they are get any relaxation in getting the loan
Q15. Are you Satisfy with the down payment system of the bank?
INTERPRETATION:-
73% of the respondent says that they are Satisfy with the down payment system of the
bank.
Q16. According to your view it is easy to pay down payment with out any
Complication?
INTERPRETATION:-
93% of the respondent says that According to their view it is easy to pay down payment
without any Complication
Q17. Are you Satisfy with the loan demonstration by the bank?
INTERPRETATION:-
100% of the respondent says that they are Satisfy with the loan demonstration by the
bank.
Q18. Do you agree with the repayment facility of loan is simple in Allahabad bank?
INTERPRETATION:-
100% of the respondent says that they are agree with the repayment facility of loan is
simple in Allahabad bank
Q19. Do you find this bank in superior over other banks in providing loan facility?
INTERPRETATION:-
100% of the respondent says that they are found this bank in superior over other banks in
providing loan facility.
Q20. Do you fully agree with the terms & condition of Allahabad bank?
INTERPRETATION:-
77% of the respondent says that they are agreeing with the terms & condition of
Allahabad bank.
CHAPTER-IV
MAJOR FINDINGS
SUGGESTIONS
CONCLUSION
CHAPTER-IV
MAJOR FINDINGS
The following findings have been interprets from the above graph
73% of the respondent loans have taken education loan.
80% of the respondent have taken loans for more than 3years which is provided
by the bank
80% of the respondent says that more than 4 years of time is given by bank to
payback loan
50% of the respondent says that monthly installment types of installment are best.
63% of the respondent says that types of securities do they ask usually is fixed
deposit.
97% of the respondent says that they are Satisfy with the rate of interest charged
by Allahabad bank
97% of the respondent says that loans provide benefit of Zero percent interest.
100% of the respondent says that the facility of providing loan is better than other
bank
37% of the respondent says that they are agreeing get timely loan for your benefit.
50% of the respondent says that they more than competitor satisfy with the rate of
interest changed.
73% of the respondent says that they are get any relaxation in getting the loan
73% of the respondent says that they are Satisfy with the down payment system of
the bank.
93% of the respondent says that According to their view it is easy to pay down
100% of the respondent says that they are Satisfy with the loan demonstration by
the bank.
100% of the respondent says that they are agree with the repayment facility of
100% of the respondent says that they are found this bank in superior over other
77% of the respondent says that they are agreeing with the terms & condition of
Allahabad bank.
SUGGESTIONS
Believe it or not, buying a car is still considered a status symbol in India. Though the
advent of the small car has created a huge dent in this reputation, but the fact still remains
that a car is a cherished dream of every Indian. Owning a car is made simpler by the
fabulous offers by various banks and car finance companies in India on almost every car
model. Now, you don't need to book a car ( most of the models) in advance, there is no
requirement that you pay entire cost of the car in cash, just have a part of the total cost,
add some creditworthiness and rest is filled up by a decent car loan. Almost every car be
it used or new is financed and acessible to all those who inspire confidence in banks and
car finance companies.
With the car loan taking so much importance and lots and lots of information bombarded
on the average consumer by different media, it is very easy to get lured into a trap. To
know the intricacies of car loans is the only way one can avoid getting into an unwanted
situation and later repent in leisure. Here Are a few such things, which can save a lot for
every car loan customer.
Earlier it was very difficult for an individual to buy a his dream car because of the
financial constraints.. The boom in the banking sector has led to release of large
amount of funds for car loan. Now, car loans are easily available from various
banks in India and this change is encouraging more and more people to owe
luxurious and as per comfort cars despite of their financial shortcomings. Many
nationalized banks have come up with various car loan schemes that people can
benefit from.
Loans from Indian Banks are easily available and the other loans that you can get include
the Auto loans, Commercial loans, equipment loans, travel and real estate loans. Some of
the Indian banks which offer loans are United Bank of India, IDBI bank, Punjab National
Bank, State Bank of India and Oriental bank of commerce etc.The maximum amount of
loan offered for car in India is Rs.10 lacs. Different banks have different set of formalities
and EMI pattern followed
ALLAHABAD BANK is better than other banks in many respects as it offers Good
healthy infrastructure, strong heirarchial pattern, proper mix of the youth and the wel
experienced staff in their hierarchy, core banking solutions, net banking facility, SMS
facility, ATM facility, e-banking facility etc. There are many banks in Bhopal which do
not extend education loan in Bhopal like standard chartered bank, IDBI bank etc.
CHAPTER – V
IMPACT OF NPA’s
IMPACT OF NPAs IN ALLAHABAD BANK:
This chapter focuses on examining the impact of
NPAs in ALLAHABAD BANK. As the NPA from year to year keep on
increasing, It is a difficult task for the banks, especially public sector banks
to tackle the high level of NPAs.
The following are the figures of gross and net NPAs of ALLAHABAD
BANK from the period 2005-2007.
GROSS AND NET NPAs OF ALLAHABAD BANK PERIOD (2004-2007)
It was observed during the perusal of filed cases in public sector banks
that it took many years, in many cases more than a decade, for the courts to
settle the cases even after passing of the orders/decree, due to the multiple
litigation opportunities, eg., referring to appellate courts, higher courts, full
benches etc, long time is taken for the settlement of the cases. Difficulties
are also faced and delay is occurring in the execution of decree.
A part from the suit filing and legal measures the govt. and RBI has
suggested other vehicles to address the problem of NPAs recovery.
At the end of June 2007, out of the total numbers of 11,700 cases filed and
transferred to debt recovery tribunal (DRT) involving Rs. 8,866.67 crs. Only
1045 cases have been decided and meager amount of Rs. 178.08 crs was
recovered.
WORKING GROUP:
Taking a serious note of this situation, the central board of RBI in
2007 reviewed the effectiveness of DRTs. RBI therefore decided to set up a
working group under the chairman ship of N.V. Deshpande, former legal
advisor to RBI, comprising officials from the govt. banking divisions, some
bankers and RBI officials to look into the various issues and to suggest
measures for their effective functioning.
2 The group was also to examine the existing statutory provisions and
suggest necessary amendments to the 1993 act with a view to improving the
efficiency of the legal machinery.
1 First it was noticed that once an application had been made to DRT, the
branch managers and staff of the banks did not take any interest in the
proceedings
3 The working group suggested that the banks and FIs should impress upon
their officers and staff to take a keen interest in the proceeding.
4 The group also said that the recovery officers should be given assistance
of agencies like police and professional debt recovery agencies and the act
be amended to provide licensing and regulating professional recovery
agencies.
5 One of the most important recommendations was that not only should
there be a tribunal in every state, there should be more than one DRT in the
same state if the workload of the tribunals so justified. The presiding officers
of DRTs should not have more than 30 cases on the board on any given data
and there should not be more than 800 cases pending before it at any given
point of time.
The center on march 9th ,2000 introduced the recovery of debts due
to banks (amendment ) bill 2000. the aim was to correct the legal
anomalies pointed out by the supreme court such as the stipulation that
tribunals would continue to function not with standing court stay or
transfer of petitions. The amendments, first brought into force through
the ordinance from 17th January,2000 addresses many of the other
lacunae. It empowers DRTs to attaché the property of the borrower on
filing of the applications to that effect.
CHAPTER – VI
MANAGEMENT OF
NPA’s
MANAGEMENT OF NON PEFROMING ASSETS:
The new concepts of income recognition, asset classification
and provisioning have been introduced in phases with effect from 1992-93.
The impact of implementation of these prudential guidelines on the
commercial banks has been so strong that out of 20 nationalized banks, one
had to be merged and out of the remaining 19 banks excepting 6, all others
were in red, showing net losses aggregating to a staggering level of 3573.13
crores. In march 1993 and still a higher level of Rs.4705.01 crores in march
1994. Further, due to staggering net loss revealed by the Indian bank, the
aggregate net loss of the 19 nationalized banks even in march 1996 was rs.
1153.96 crores. However the aggregate net profit of 19 nationalized banks,
as on 31st march 1997 was Rs.1445.48 crores.
The message is now very loud and clear. If a bank wants to survive
and grow, it has no option but to actually recover the interest and principal in
accordance with the terms of sanction. If it fails to recover, the bank branch
can not recognize the interest debited to the account as income. In case
income is not received as per prudential norms, the loan will become a NPA
with all its necessary consequences.
The NPA effects adversely the health of the bank in several ways as follows:
III.In case bank fails to upgrade the NPAs into the performing assets, it may
be forced to incur legal expenses by going to court or recovery tribunals.
V. Inadequate capital adequacy may downgrade banks rating and effect its
growth and survival.
3. Cleansing the balance sheet of bank of loss assets and also of unsecured
portion of doubtuful assets, ultimately leading to improvement in the capital
adequacy ratio of the bank.
The above objectives can be achieved by adopting the following
strategies as a measure of reduction in the level out standing Non performing
assets(NPAs).
1 Studying the problem of NPAs – branch wise, amount wise and age wise.
5 Fixing targets of recovery and draw the time bound action program
8 Taking corrective steps when ever found necessary while monitoring the
action plan make changes in the original plan if necessary.
I. The borrowal accounts lying at the top-end of the list of “sub standard
assets” are likely to be NPA of less than 1-year i.e., they must have
slipped back to this category only recently. All-out efforts should be
made to upgrade these accounts and make them performing (standard
assets) by recovering the derecognized interest of all four quarters of
last year and at least three quarters of the current year or taking other
relevant measures which are necessary to make their performing assets.
I. In case where steps (ii) and(iv) do not succeed, bank has no option
but to resort to legal action within the limitations period either by going
to debt recovery tribunals (or) judicial courts. In case of agricultural and
other smaller loans banks may file recovery certificates under state acts
or approach lok adalats, if necessary for amicable settlement.
III. All the BIFR cases under rehabilitation program or under banks own
nursing program should be closely monitored so as to ensure that the
rehabilitation is on right course.
↓ recover interest.
↓ D3 > 3 years
↓
Submission of monthly progress report
↓
Close monitoring of BIFR cases
4 Suitable colored printed post card in local languages may be supplied for
issuing notices of recovery camps and such camps may be attended by
regional managers or other senior officers of the regional office.
5 Bank may also try recovery peons (in bank uniforms) who may visit
borrowers before 9 am or after 5pm for meeting the borrowers for recovery
of bank dues.
8 Head office and zonal offices should also take advantage of lok adalats.
Where available, for striking instant compromise judgements in the presence
of both parties. But ,this will require necessary home work by the zonal
heads in advance so that large number of cases are mobilized and
concurrence taken from competent authority, before attending the pre-
determined dates of lok adalats.
9 In all those cases where recovery chances are bleak and there is neither
any operation in the account nor any recovery has been effected during the
last 2-3 years, but the cases are eligible for lodgment in terms of latest D1
and CGC guidelines, branches should be advised to prepare all such cases
correctly and send to nodal center of the bank for prompt lodgement of
claims with D1 and CGC, Mumbai. Subsequently, there should be close
effective follow-up by the bank with DI and CGC, Mumbai for prompt
settlement.
12 There should be close follow-up with banks lawyers having large number
of un disposed cases and their selection or future assignment of cases to
them should be based on merit and performances.
“ Loan is not a charity and it has to be repaid on the due date come
what may.” Should be the slogan of a good banker.
FLOW CHART FOR ACTION PLAN
↓
After settlement reduce the amount of loss assets from bank books
1. SLR to be reduced from 38.5% to 25% over next five years and CRR to
be brought down to 3%.
3. Not more than 10% of the aggregate bank credit should be earmarked for
the redefined priority sector.
9. For banks with a high NPA portfolio, two alternative approaches could be
adopted. One approach can be that all loan assets in the doubtful and loss
categories, should be identified and their realizable value should be
determined. These assets could be transferred to asset Reconstruction
Company which would issue NPA swap bonds.
13.Special tribunals should be set up for speedy recovery of the bank loan
dues.
www.Allahabad Bank.com
www.eassytown.com
www.google.com
www.valueresearchonline.com
3. OTHER RESOURCES
Q1. How do you come to know about Allahabad Bank, when you appeared for your
interview at Allahabad Bank?
Advertisement
Consultancies
Internet
Through friends working in company
Q3. Are these kind of employment tests are used in the organization for recruitment
procedure??
Intelligence test
Aptitude test
Psychometric test
Any other, please specify
Q4. Which kind of interviews are used for recruitment at Allahabad Bank?
Preliminary Interview
Stress Interview
Discussion Interview
Any Other, Please specify
Q8. Are employees in HR department are satisfied with their salary package?
a) Yes b) No
Q9. Does the organization pays attention on medical examination before offering the
job?
a) Yes b) No
Q.10 Do you think that the selection process in the company is quite lengthy?
a)Yes b)No