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MANDAR EDUCATION SOCIETIES RAJARAM SHINDE COLLEGE OF MBA PEDHAMBE, CHIPLUN 2011-2012
A SUMMER INTERNSHIP PROJECT REPORT ON LOANS AND ADVANCES BY Mr .ABHIJIT PATIL UNDER THE GUIDANCE OF Mr. LAXMAN RENAPURE SUBMITED TO UNIVERSITY OF MUMBAI
In partial fulfillment of the requirements for the award of the degree of Master Of Management Studies (MMS) FINANCE
Through
MANDAR EDUCATION SOCIETIES RAJARAM SHINDE COLLEGE OF MBA PEDHAMBE, CHIPLUN 2011-2012
DECLARATION
I ABHIJIT PATIL OF THE RAJARAM SHINDE COLLEGE OF M.B.A, HEREBY DECLERE THAT I HAVE COMPLITED THE PROJECT ENTITLED LOANS AND ADVANCES IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE SECOND YEAR OF THE MASTER OF BUSINESS ADMINISTRATION (MBA/MMS) COURSE FOR THE
I FURTHER DECLARE THAT INFORMATION SUBMITED BY ME IS TRUE AND ORIGINAL TO THE BEST OF MY KNOWLEDGE.
DATED:
ABHIJT PATIL
ACKNOWLEDGEMENT I take this opportunity to sincerely thanks and express my gratitude to my project guide Mr. Laxman Renapure for guiding me throughout my entire project. The experience and the knowledge acquired over the interactions with the guide have been invaluable to say the least and will help me a great deal in my future education and career. My project was complete in a very supportive and interactive environment and has been great learning experiences. Last but not the least i would like to thanks friends for all the support they have provide me.
Abhijit R. Patil
INDEX
Sr. no.
Chapter Name
Page no.
Bank profile Introduction, Management, Research Methodology objective the Project Balance-Sheet, Profit and Loss A\c, Risk Management Theoretical background
12
20
Loan
Scheme
44
51
Conclusion
54
Bibliography
56
INTRODUCTION OF ORGANISATION:
Inspired by the clarion call for self reliance given by National leaders in the pre-independence era, a group of patriotic, eminent personalities from various walks of life came together to launch a crusade for economic independence. On the then scenario of industrialist owned banks catering to the needs of the rich and realizing the limitations of co-operative societies and co-operative banks, it was decided to establish a commercial bank with the avowed objective of meeting the needs of the low and middle income segment of the society engaged in trade and commerce. Motivated by the driving force of Shri. Babgonda Bhujgonda Patil, a distinguished Advocate of Sangli and Shri. Gangaram Siddhappa Chougule, a renowned merchant of Kolhapur, THE RATNAKAR BANK LTD., was born on 6 th, august 1943. Ratnakar means an ocean, a treasure house of jewels. In a short span of just 16 years, The Reserve Bank of India conferred the status of SCHEDULE BANK on THE RATNAKAR BANK LTD., in 1959. The Bank, by its conscious decision of serving, basically, Kolhapur and Sangli districts, has in the past preferred to grow into an institution of immense internal strength in preference to size. Now, in keeping with the present day challenges the bank has embarked on a modernization and expansion programme with the objective of consolidation its strengths by achieving recognition for its development in size, as well.
MANAGEMENT:
The Board of Directors comprises of progressive agriculturists, reputed traders, merchants, professionals like Chartered Accountants, Business Management etc. The Board of the bank is headed by Chairman Shri. Subhash G. Kutte. The counsel emanating from the rich and varied fields of exposure is reinforced by Shri Vishwavir Ahuja as Managing Director and Chief Executive Officer, a dynamic professional banker of clear vision, who enjoys facing new challenges and has a constant sharp focus on qualitative business growth.
BOARD OF DIRECTORS:
Name Mr. S. G. Kutte Mr. Vishwavir Ahuja Mr. B. D. Arwade Mr. S. N. Minache Mr. R. S. Naik Mr. K. J. Patil Mr. G. V. Godbole Mr. Narayan Ramachandran Mr. Murli Radhakrishnan Mr. T. B. Satyanarayan
1 2 3 4 5 6 7 8 9 10
Chairman M.D. & C.E.O. Director Director Director Director Director Director Additional Director Additional Director
BUSINESS:
The Bank is honoured by the patronage and confidence reposed in it by over 4,00,000 clients. The Working Funds of the Bank (as on 31.03.2011) are around Rs. 4854 Crores (Deposits Rs.2042 Crores plus Advances Rs. 1920 Crores plus Investment Rs. 892 Crores). This business has been secured through 100 branches spread over Maharashtra, Karnataka, Goa, Gujarat, Delhi and Silvassa (U.T.). All the branches are providing core banking services.
SERVICES:
The Bank offers a wide range of deposits schemes custom made to meet the requirements of all patterns of savings, surplus funds available for differing time spans. Competitive rates are offered with special incentives to senior citizens and for deposits over Rs. 15 lakhs and Rs. 1 Crore for certain maturity periods. Safe Deposits Locker facilities can be availed from 37 branches. Same day credit remittances are routinely arranged. The Bank has launched a variety of loan schemes such as Sanjivani Mortgage Loan Scheme, I.P.O. Financing, Ratna-Trade, Super Secured Loans, Personal Loans, Educational Loans, Ratnakar Kisan Credit Cards etc. designed to meet expectations of financial assistance from the entire cross section of society.
10
The Bank provides financial assistance to all types of commercially viable enterprises, be it for agriculture, dairy, industry, professionals like doctors, lawyers, chartered accountants, traders (wholesale and retail) small borrowers etc. Wherever eligible, refinance is availed from IDBI, SIDBI and NABARD. This provides source for further financing by the Bank. In its efforts to be an institution offering comprehensive financial services the bank has extended its activities into all spheres of financial intermediation. The major areas are given below.
11
ATM:
The Bank has installed ATM at its various branches. These ATMs are under National Financial Switch. As in the past, the Bank would enhance the spectrum of services in keeping pace with the changing environment and market expectations. There are about 704 strong contingent of dedicated employees who are eager to fulfill the motto of THE RATNAKAR BANK LTD., which is:-
HELPFUL TO NEEDFUL
12
13
The Ratnakar Bank is large established bank in commercial sector is a part of vast network of branches situated all over Maharashtra and outside of Maharashtra. At present the Bank concentrates on business loans apart from loans like a Ratnakar Professional, Sanjivani Mortgage etc. Hence, are the scope of study includes various types of loans, loan procedures and requirement conduction for eligibility and are same. The study also covers advances of business from 2004-05 to 2008-09.
14
15
LIMITATIONS OF STUDY:
It was difficult to have discussion with the concerned credit officers because of their busy schedule. Some information is very important for bank and customer. Thats why they can not give information about such thing because of security. Time is one of the most important factors limiting the study. There are various departments such as accounts department, legal department, risk management department, credit department, special mention accounts department, inspection departments, personnel department. It is not possible to study each and every section in short span of time. This project is related only with credit department.
16
Risk management:
The Bank has adopted committee approach to Risk Management. Risk Management Organization Structure of the Bank is as follows.
Board of Directors
committee (ICMC)
committee (ORMC)
committee (ALCO)
17
BALANCE SHEET
(Rs. in 000s)
Particulars CAPITAL & LIABILITIES Capital Reserve & Surplus Deposits Borrowings Other Liabilities & Provisions TOTAL ASSETS Cash and Balance with Reserve Bank of India Balance with Bank and Money at Call and Short Notice Investments Advances Fixed Assets Other Assets TOTAL Contingent liabilities Bills of collections Significant Accounting Policies Notes To Accounts
31-3-2010
31-3-2009
31-3-2008
18
19
Performance of decade:
Particulars Capital Reserve & surplus Owned fund C.R.A.R. Deposits Advances (net) Investment (net) Gross NPA Net NPA 2005-06 2847.97 2571.13 5419.10 10.77% 87417.74 49083.48 27664.13 3928.94 1279.04 2006-07 11656.01 8267.81 19923.82 34.34% 87639.02 53051.75 31583.38 3805.22 1020.22 6.81% 1.92% 301.19 254.41 553 8.09 246.92 0.31% 2007-08 10472.01 21828.89 32300.90 49.15% 110107.18 58579.42 36131.91 3708.90 580.93 6.01% 0.99% 1701.03 5.00% 310.09 544 16.85 319.93 1.31% 2008-09 10472.01 23652.04 34124.05 44.87% 130704.77 80111.40 40448.31 1727.69 545.20 2.13% 0.68% 3052.55 10.00% 373.13 565 2.91 32.47 1.96% 2009-10 10472.01 24826.14 35298.15 36.01% 158503.67 117044.37 50721.76 2763.87 1153.45 2.33% 0.97% 1910.80 6.00% 391.40 704 1.82 33.59 1.05%
Gross NPA to gross 7.59% advances Net NPA to net advance 2.61% Net profit Dividend rate Per employee business No. of employees E.P.S.Rs Book value per share Rs. Return on asset 59.08 250.92 544 1.98 181.45 0.07%
20
21
22
23
(e) Bank loans and advances are found to be convenient as far as its repayment is concerned. This facilitates planning for future and timely repayment of loans. Otherwise business activities would have come to a halt. (f) Loans and advances by banks generally carry element of secrecy with it. Banks are duty-bound to maintain secrecy of their transactions with the customers. This enhances peoples faith in the banking system.
Advances:
Advances means all kinds of credit facilities including cash credit, overdraft, term loans, bill discounted/purchased, factored receivables etc. and investments other than that in the nature of equity. The term Loans and Advances will not include loans or advances againstGovernment securities. Life insurance policies. Fixed or other deposits. Stocks and shares. Temporary overdraft for small amounts up to Rs. 25000. Casual purchase of cheques up to Rs. 5000 at a time. Housing loan, Car advance etc. granted to an employee of the bank under any scheme applicable generally to employees.
24
Credit Sectors:
With a view to ensure socially equitable distribution credit to all segments of the society and particularly to the preferred sector for overall economic development credit deployment credit deployment is classified into Priority and Non priority Sectors.
A] Priority Sector:
based on the report submitted by Informal study Group the description of priority sector was first formalized in 1972. These sectors broadly include, Agriculture (direct and indirect) Small scale industries Industrial estate Exports Road and water transport operators Retail trade and small business Professional and self employed persons Education Housing Advances to weaker sections Pure consumption loans under consumption credit scheme Loans to self-help groups(SHGS)/NGOS/Micro-credit Food and agro-based processing sector Software industry Venture capital
25
26
27
Prospective borrower:
The prospective borrower is evaluated with respect to three aspects by capacity, character and capital. If the bank is satisfied with above three aspects, it can proceed further for the consideration of the proposal.
Application form:
The bank device loan application form for advance. The application form contains necessary details about the borrower, his assets, purpose of the loan, viability of the projects etc., particulars like annual turnover of the business, annual production, sales, profits are covered in the form.
28
Valuation:
Valuation of the property of the prospective borrower is made, which he is giving for securities.
29
30
Other Norms 1) 2) 3) 4)
1.
: (A) For employees of govt. / semi govt. reputed companies. Applicant must be permanent employee Should submit salary certificate, undertaking letter of employer to deduct & send the monthly installment. I.T. returns copy. Maximum take loan salary should be 50% after deducting housing loan installment. (B) For businessman or traders or professionals and self-employed. Income proof for last 3 years i.e. audited balance sheet or I.T. return. (C) For farmers Income proof for last 3 years. (D) One acceptable guarantor.
31
CONSUMER LOAN :
Repayment Period: Maximum 5 years Margin : 25% Purpose : To purchase TV/VCR/Refrigerator/ Furniture / Equipment etc. Eligibility : Employees of govt. / semi govt., reputed companies / businessmen, traders / professionals & self-employed persons / farmers. Other Norm 1) 2) 3) 4) : (A) For employees of govt. /semi govt. reputed companies. Applicant must be permanent employee Should submit salary certificate, undertaking letter of employer to deduct & send the monthly installment. I.T. returns copy. Maximum take loan salary should be 50% after deducting housing loan installment. (B) For businessman or traders or professionals and self-employed. Income proof for last 3 years i.e. audited balance sheet or I.T. return. (C) For farmers Income proof for last 3 years. (D) One acceptable guarantor.
1)
32
AGRICULTURE LOAN:
1. 2. 3. 4. 5.
Form mechanizations & other transportations vehicle schemes. Tractor Trailer & agriculture implements. Power tillers/Threshers machines. 4 wheelers for agriculture purpose. E.g. Jeep Two wheelers for agriculture purpose Trucks& other vehicles for agri. Goods /products transportation purpose. For tractor trailer & agri. implements.
1. Minimum requirements- one tractor, one trailer and implements. 2. Minimum land holding -6-8 acres irrigated land (individual farmers or group of farmers). For all other types of vehicles considering irrigated land annual agriculture and other income. (1) Margin 20% (2) Period 3 to 5 years. (3) Requirements of papers a) Quotation b) 8A/ 7/12 Extracts c) No dues certificate from societies / Local banks / NOC. From concerned bank. d) Guarantor and his worth papers. e) Information regarding annual income from agriculture and other sources.
33
Limit
Repayment period: Maximum 5 years Margin : 25% Eligibility : Employees of govt. / semi govt., reputed companies / businessmen, traders/professionals & self employed persons/farmers.
34
35
8) Margin minimum 50% of value of property. 9) Guarantor one acceptable guarantor (other than co-borrower). 10) 11) 12) Interest rate at PLR. Processing charges Rs.150/- per lakh or part thereof. Papers requirement for assessment:
1. Application form 2. Declaration regarding relationship with directors/ executives of the bank. 3. Financial statement of last two years (for existing units) and estimate/projection for current/next year. 4. Details of property offered as security with its valuation and title report of approved valuator/advocate. 5. Copy of sale tax registration (if available) and copies of sale tax returns/assessment for last 4 quarters. 6. Copy of last income tax assessment orders/ returns filed. Of the borrower/co-borrower/guarantor. 7. Credit report of the borrower, co-borrower and guarantor. 8. Confidential report from existing banker in case of take over. 13) Documents to be obtained 1. Form No. 51-A-Waivers letter. 2. Form No. 51-Demand promissory note. 3. Form No. 55- Cash credit/Overdraft agreement of immovable property. 4. Continuing security letter. 5. Form of acknowledgement of Debt for an advance against E.M. 6. Memorandum of deposit of Title deed/registered mortgage deed. 7. Original title deed in case of equitable mortgage. 8. Legal opinion. 9. Valuation report.
36
10.Non-encumbrance certificate. 11.Latest assessment and municipal tax paid receipt. 12.Extract of property card with bank charge noted on it (within one month from disbursement). 13.Insurance cover for fire, riots, civil commotion and earthquake should be taken. 14.Classification advance as per activity. 15.Sanctioning authority as per power delegated. 16.Monitoring/precautions. a. For existing units banking with us, it should be ensured that the performance/ operations and future prospectus of the activity are good. b. For units proposed to be taken over from other banks, it should be ascertained from the statement of accounts that the account is satisfactory. Confidential report may be obtained prior to disbursement. c. For new units, the projections should be examined to ensure that they are achievable. d. Pre-sanction visit is essential. Report of the visit is to be appended with the application. e. Disbursement may be allowed only on completion of all formalities of mortgage. f. Submission of post disbursement certificate within 15 days should be ensured. g. Unit should be visited at least once in a quarter and report should be kept on record for verification by auditors/ inspecting officers. h. In case operations of the accounts are not found to be satisfactory/ as per projection correcting steps be initiated immediately. i. Branch should ensured that the party is not enjoying working capital limit elsewhere. j. Sanctioning authority should get the sanction noted from the immediately next higher authority.
37
OF
MEDICAL
: (A) Income proof for last 3 years i.e. audited balance sheet or I.T. return. (B) One acceptable guarantor. Revised scheme : Effective from 01/12/2006. Name of scheme : Ratnatraya Professional scheme 1) Target group professional such as doctors, dentists, architects, chartered accountants, company secretary and engineers. 2) Eligibility and assessment of limit a. Minimum income Rs. 1,50,000 p.a.(Salary/profession income) as per income tax return filed. b. Maximum limit would be 3 times of annual income (average of last 2 years). c. Solely banking with us. 3) Facility cash credit/term loan. 4) Purpose to meet business/professional requirement 5) Quantum of loan minimum Rs. 2,50,000. Maximum Rs. 10,00,000. 6) Minimum qualification M.B.B.S./B.D.S./B.Arch./C.A./C.S./DME/B.E./M.E./B.Tech./ M.Tech./BAMS/BHMS 7) Period of facility minimum 1 year/ Maximum 5 years. 8) Repayment yearly renewal/ equated monthly instalment. 9) Security 100% of loan amount by way of movable/immovable assets or paper security such as LIC/NSC/KVP/Shares/Govt. Security/Bonds (market value/surrender value to be considered). 10) Margin NIL.
38
11) Guarantor one acceptable guarantor. 12) Interest rate PLR = 11.75% (rebate not applicable) 13) Processing charges Rs. 300/- per lakh or part theirof. 14) Papers requirement for assessment. a. Application form b. Guarantor form c. Declaration regarding relationship with directors/executives of the bank d. Degree certificate (to be verified with original) e. Financial statement of last 2 years f. Worth papers g. Copy of last income tax assessment order/ return filed. Of the borrower/guarantor. 15) Documents to be obtained. a. Form No. 51-A-Waivers letter. b. Form No. 51-Demand promissory note. c. Form No. 54/53 loan/Overdraft/Cash credit agreement. Form No.66 Letter of Guarantee On Rs. 100/- stamp paper. d. Legal report, Valuation report. e. Personal life cover insurance equal to limit sanctioned policy is taken(no profit) under tie up arrangement 16) Classification of advance priority sector-professional. 17) Sanctioning authority Branch manager up to Rs. 5 lakhs.
39
5) Margin
: Up to Rs.4.00 lack-nil. Above Rs.4.00 lack Studies in India: 5% Studies abroad : 15%
40
Scholarship/assistantship to be included in margin. Margin may be brought in on year to year basis as & when disbursement is to be made on pro-rata basis. 6) Security : Up to Rs.4.00 lacks - no security. Above Rs.4.00 lacks -collateral security equal to 100% of amount or suitable value or co-obligation of parents/guarantors/third party along with the assignment of future income of the student for payment of instalments may be obtained. The documents should be executed by both the student & parents/guardians. The security can be in the form of land/building/government securities/public sector bonds/units of UTI/NSC/KVP/LIC policies/gold/shares/debentures/bank deposits on the name of student/parents/guardian or any other third party with suitable margin. Whenever the land/building is already mortgaged, the unencumbered portion can be taken as security on 2nd charge basis provided it covers the required loan amount. In case the loan is given for the purchase of computers the same is to be hypothecated to the bank. : Up to Rs.4.00 lacks - PLR. Above Rs.4.00 lack - PLR +1%. The interest to be debited monthly/quarterly/half yearly on simple basis during moratorium period. Penal interest @2% is charged for above Rs.4.00 lack for overdue amount and overdue period.
7) Rate of interest
8) Processing charges: No processing/ upfront charges. 9) Papers required for assessment: a) Loan application mentioning purpose and name of co-debtor, parents, guardians, name of guarantor offered along with worth papers. b) Mark list, passing certificates, merit certificate of last examination passed. c) Selection letter of particular course/ education from concern institution.
41
d) Recent financial statements/ income statements of co-debtors/ guardian for last 2 years. e) Financial and other supporting documents. f) Repayment plan of instalment and interest by the applicant along with cash flow statement. g) Projected income statement of candidate, estimates of expenses etc. 10) Sanction/ Disbursement: The loan to be sanctioned by the head office as per delegation of powers. The loan to be disbursed in stages as per the requirement/demand, directly to the institutions/vendors of books/ equipments/ instalments. Repayment (repayment, holiday/ moratorium): Course period+1 year or half year after getting job, whichever is earlier. The loan to be repaid in 5-7 years after commencement of repayment. If the student is not able to complete the course within the scheduled time extension of the time to completion of course will be permitted for a maximum period of 2 years. If student is not able to complete course for reasons beyond his control the extension will be considered as may be deemed necessary. The accrued interest during the repayment holiday period to be added to the principal and repayment in equated monthly instalments (EMI) fixed. 1-2% interest concession may be provided for loans if interest is serviced during the study period. Follow up: Branch to contact college/ university authorities to send the progress report at regular intervals in respect of students who have availed loans. Capability certificate: Branch can also issue capability certificate for students going abroad for higher studies after confirmation of head office. For this, financial and other supporting documents may be obtained from applicant (Same of foreign universities require the students to submit a certificate from their bankers
11)
12)
13)
42
about solvency/ financial capability for ensure that the students going abroad for higher studies are capable of meeting expenses till completion studies.) 14) Other conditions: No dues certificate need not be insisted upon as a pre-condition for considering educational loan. However branch may obtain a declaration/ an affidavit confirming that no loans are availed from other banks. Loan applications have to be disposed of within a period of 15 days to 1 month but not exceeding the time norms stipulated for disposing of loan applications under priority sector lending.
15) Documents to be taken: Form no.51 A - Waiver letter. Form no.51 - Demand promissory note. Form no.5 - Clean term loan agreement (With appropriate stamp) Form no.66 - Letter of guarantee (With appropriate stamp)
43
44
45
25000
20000
15000
10000
5000
INTERPRETATION-
In above table, Loan disbursement of following priority sector Agriculture, Small scale industry, Other priority sector and Weaker factor
In Agriculture: In Agriculture loan disbursement in year 2006-07 to 2010-2011 in between the every year loan demand growing 30% to 292% every year.& only 2008-2009 this year government change his banking regulatory system for agricultural sector that year 10% demand less in this year with effect of demanding the loan and repayment of principle amount.
46
Other priority sector In Other priority sector means Educational loan , Housing loan, Vehicle loan & other disbursement in year 2006-07 to 2010-2011 in
between these year loan demand growing 12.58% to 21.36% every year.& only 2010-2011 last year 35.07% demand very less market down fall in total five year observation cases.
Weaker factor
The weaker sections mainly include small and marginal farmers, landless laborers, tenant farmers, artisans, scheduled castes and scheduled tribes and self-help groups they are demand the loan in priority basis in year 2008-09 they are not demanding the loan as compare 2006-2007 to 2010-11 These primary Three year demand for low .01% and government change in the weaker section priority2009-10, 140% hick & next year 800% stable in boom position
47
48
5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2006-07 2007-08 2008-09 2009-10 2010-11 housing loan consumer loan auto loan personal loan
INTERPRETATION-
In above table Loan disbursement of following Housing loan, Loan for Consumer Durable , Auto loan and Personal Loan.
HOUSING LOANIn Housing loan disbursement in year 2006-07 to 2010-2011 in between the every year loan demand growing 26.37% to 144.22% every year LOAN FOR CONSUMER DURABLEIn loan for consumer durable disbursement in year 2006-07 to 2010-2011 in between the not every year loan demand growing but 2007-08 to increase the 301%. & after 2007-2008 loan decrease in every year.
49
AUTO LOAN In auto loan disbursement in year 2006-07 to 2010-2011 in between the every year loan demand growing 0.40% to 65.77% every year.& only 2008-2009 this year loan decrease in 4.35% demand less PERSONAL LOAN In Personal loan disbursement in year 2006-07 to 2010-2011 in between the every year loan demand low in every year.
50
51
FINDINGS:
1) Bank has very carefully designed credit appraisal system for correct and authentic appraisal of the loan proposal. 2) Bank has different rating forms according to the type and amount of loan. A proposal is carefully rated with the help of these forms. 3) The loan approval decision of The Ratnakar Bank Ltd. is totally in the hands of Kolhapur Head Office (administration office), Market Yard, Kolhapur. 4) Sanjeevani Mortgage and Ratna Trade loan scheme margin is highest i.e. 50% is not profitable to the customer. 5) Bank takes optimum of security from the borrowers.
52
SUGGESTIONS:
To increase the business and reducing the risk involved in the sanctioning the loan following measures are suggested 1) In personal loan scheme very large amount of loans to a single person should be avoided as far as possible. 2) Bank can start giving loan to hotel business, construction and travel and tourism business because at present these businesses are in boom. 3) The sanctioning power of the branch manager should be enhanced to increased the overall operational efficiency. 4) The procedure of sanctioning or period of sanctioning should be fast. 5] Also bank should provide internet loan application system to customer.
53
CHAPTER VI CONCLUSION
54
Banking in India is form long time back..But that time banking and todays banking has a huge difference. Because there are many development in banking sector. Internet banking, core banking these are new face of todays banking system. Only keeping money safe in the bank is not the business, a bank expands their business time to time with the era of technology. Bank has very carefully designed credit appraisal system for correct and authentic appraisal of the loan proposal. & implementing different rating forms according to the type and amount of loan. And banks Mortgage and Ratna Trade loan scheme margin is highest. Preferable for banks point of view & takes optimum of security from the borrowers. In this project we conclude that measures of sanctioning the loan In personal loan scheme very large amount & a single person should be avoided as far as possible. Bank can start giving loan to hotel business, construction and travel and tourism business because at present these businesses are in boom. 3) The sanctioning power of the branch manager should be enhanced to increased the overall operational efficiency. 4) The procedure of sanctioning or period of sanctioning should be fast. 5] Also bank should provide internet loan application system to customer.
55
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a) Reference books:
1. Banking (Theory, Law and Practice) (page no.160 to 167) Twentieth Revised edition Prof. E. Gordan and Prof. Dr. K.Nataranjan Himalaya Publishing House (1992)
2. Financial Management (Theory and Practice) Prof. Prasanna Chandra (7th edition) Tata Mcgraw Hill Publishing Co.Ltd New Delhi
3. Financial Management (Text, Problem, cases) Prof. M.Y.Khan Prof. P.K Jain (5th edition)
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c) Others: 1. Manual of instructions of credit department. 2. Annual reports 3. Credit policy report.
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