final project kvg
TRANSCRIPT
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JANATA SHIKSHANA SAMITI
BANASHANKARI ARTS,COMMERCE AND SHANTIKUMAR GUBBISCIENCE
COLLEGE,VIDYAGIRI,DHARWAD-580004
“ORGANISATION STUDY”
AT
KARNATAKA VIKAS GRAMEEN BANK .DWD.
BY
SANDYA .Y.KATTIMANI.
A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLEMENT OF THE REQUIREMENTS FOR
“BACHELOR OF BUSINESS ADMINISTRATION” OF DHARWAD -KARNATAKA UNIVERSITY
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ACKNOWLEDGEMENT Any accomplishment requires the efforts and support of many people, and so does my project. It gives me immense pleasure to acknowledge the help, assistance and guidance to me by the people concerned.
My grateful acknowledgement to Mr.V. K. Kalkundri, General Manager, KVG BANK, for providing me with an opportunity to undertake my Major Concurrent Project at KARNATAKA VIKAS GRAMEENA BANK.
I wish to express my gratitude to Mr.G.Sadanand and Mr. Vinayak Airsang, Staff, RBTC, KVG BANK, without whose guidance it would not have been possible to complete my project.
I sincerely thank all the employees of KARNATAKA VIKAS GRAMEENA BANK, who have greatly helped me in collecting the vital data relevant for the project.
I am grateful to Prof. N. L. Guddin for her timely and constant advice, guidance and encouragement.
My sincere thanks to Dr. Ajith Prasad, Principal, JSS college for his encouragement to take-up and complete the project.
Regardless of the source I wish to express my heartfelt thanks to those who may have contributed to this work even though anonymously.
SANDYA.Y.KATTIMANI
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DECLARATIONI here by declare that this project reported entitled “ORGANIZATION STUDY” undertaken at KARNATAKA VIKAS GRAMEENA BANK is an independent research work carried out by me under the guidance of organizational guide MR.MUDHOL, Branch Manager, KVG BANK, and MR.G.SADANAND and MR.VINAYAK AIRSANG, staff, RBTC KVG BANK.
This project was fully prepared by my own effort and has not been published elsewhere until now and the data and the information collected and compiled in this project is genuine of its nature.
The details of the project are kept strictly confidential and will be disclosed only to the organizational and University for the partial fulfillment of BBA course.
I also declare that this project report has not been submitted to any other university.
Date:
Place: SANDYA.Y.KATTIMANI
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EXECUTIVE SUMMARY
The present study at Karnataka Vikas Grameen vikas Bank, Dharwad is conducted for the study of disbursement and recovery procedure of loans.
The Karnataka Vikas Grameen Bank that emerged after the amalgamation of the four erstwhile Grameen Banks with its area of operation spread over nine districts, now caters to 1/3 of the geographical area of the State and therby has earned the opportunity of serving a large section of rural populace.
The basic objective of any financial institution is to maximize wealth. In order to achieve this objective the bank must earn sufficient amount of profit. The amount of such profits largely depends upon the magnitude of loans assisted and the recovery of those loans. Each component of recovery has two dimensions, time and money. When it comes to recovery of loans “Time is Money”.
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A study of recovery procedure which I have chosen as the topic of my project in KVG Bank, Dharwad is the main and the key recovery department, which plays an important role in the collection of the sources of funds for the bank which in turn will be used for refinancing for the industrial and agricultural concern.
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OBJECTIVES OF THE STUDY
To study the various schemes of the bank
Limitations
Though the present study aims to achieve the mentioned objectives in full earnest and accuaracy,it may be hampered due to certain limitations.some of the limitations of this study may be summarized as follows;
Since the Project was undertaken in Hubli-Dharwad area only the limited industrial concerns were interviewed and interacted for the purpose of collection of data.
The period of study was limited
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INDUSTRY OVERVIEW:
BANKING INDUSTRY IN INDIA
Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865.
By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.
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Early history
At the end of late-18th century, there were hardly any bank in India in the modern sense of the term. At the time of the American Civil War, a void was created as the supply of cotton to Lancashire stopped from the Americas. Some banks were opened at that time which functioned as entities to finance industry, including speculative trades in cotton. With large exposure to speculative ventures, most of the banks opened in India during that period could not survive and failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.
At the beginning of the 20th century, Indian economy was passing through a relative period of stability. Around five decades have elapsed since the India's First war of Independence, and the social, industrial and other infrastructure have developed. At that time there were very small banks operated by Indians, and most of them were owned and operated by particular communities. The banking in India was controlled and dominated by the presidency banks, namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras - which later on merged to form the Imperial Bank of India, and Imperial Bank of India, upon India's independence, was renamed the State Bank of India. There were also some exchange banks, as also a number of Indian joint stock banks. All these banks operated in different segments of the economy. The presidency banks were like the central banks and discharged most of the functions of central banks. They were established under charters from the British East India Company. The exchange banks, mostly owned by the Europeans, concentrated on financing of foreign trade. Indian joint stock banks were generally under capitalized and lacked the
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experience and maturity to compete with the presidency banks, and the exchange banks. There was potential for many new banks as the economy was growing. Lord Curzon had observed then in the context of Indian banking: "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments."
Under these circumstances, many Indians came forward to set up banks, and many banks were set up at that time, and a number of them set up around that time continued to survive and prosper even now like Bank of India and Corporation Bank, Indian Bank, Bank of Baroda, and Canara Bank.
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BRIEF HISTORY OF THE BANKOne of the successful experiments of the Banking Sector in India has been the formation of the Regional Rural Bank (RRBs). Experts in the field have acknowledged this fact taking into account the recent enormous progress achieved by the RRBs, which have travelled a long way in the past 30 years, on a journey that can best be described as arduous. Close on the heels of Nationalization, when the focus shifted from Class Banking to Mass Banking, the RRBs emerged as a low cost
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Bank designed to cater the needs of Small and Marginal Farmers, Rural Artisans, Petty Traders etc., who operate in Rural Areas.
The initial period was marked with innumerable challenges as the RRBs had to deal with illiterate, superstitious people, not exposed to the changing world scene. It was indeed an uphill task, as they were expected to play the role of just a Banker , but also that of a friend, philosopher and guide, leading them on the path of development.
Malaprabha Grameena Bank, Bijapur Grameena Bank, Varada Grameena Bank and Netravathi Grameena Bank were the four RRBs, sponsored by Syndicate Bank, in the State of Karnataka. When the above RRBs were established without much ado way back in the 1970\80s,people may not have had the slightest idea about the ripple that these RRBs would create in the banking industry and the impact that they would have on the rural scene. In the formative years, the main concern was to reach out to the rural poor through its strong network of branches. The Banks were playing a pivotal role in bringing about a metamorphosis in their respective areas of operation through implementation of the various schemes and programmes tailored to suit the requirements of their customers.
As part of the measures which will lead to strong, efficient and vibrant Banking System, the mergers and restructuring phase of the recommendations of the Narasimhan Committee is now being implemented and thus the four RRBs sponsored by Syndicate Bank in the State of Karnataka were amalgamated to form the KARNATAKA VIKAS GRAMEENA BANK by a Government of India Notification dated 12\09\2005. The combined business level of this Bank was Rs.3263.73
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Crores with Deposits of Rs.1620.46 Crores and Advances of Rs.1643.27 Crores as on 12\09\2005.
The Banks have come a long from those initials years and after the amalgamation the Bank has a network of 387 branches cutting across the length and breadth of the nine districts forming its area of operation. Surmounting the initial problems of bringing about uniformity in the working of these Branches after the amalgamation, the Bank was able to record a growth of 22.24% as on 31\03\2006 in comparison to the combined figures of the four RRBs put together as on 31\03\2005.The Bank plans to achieve a business level of Rs.4500 Crores by the end of March 2007.
BANK PROFILE
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The Karnataka Vikas Grameen Bank that emerged after the amalgamation of the four erstwhile Grameen Banks, with its area of operation spread over nine districts,now caters to 1/3 of the geographical area of the state, and thereby has earned the opportunity of serving a large section of rural populace.
One of the successful experiments of the banking sector in India has been the formation of the Regional Rural Banks (RRBs). Experts in the field have acknowledged the fact taking into account the recent enormous progress achieved by the RRBs, which have traveled a long way in the last 30 years, on a journey that can best be described as arduos. Close on the heels of nationalization, when the focus shifted form Class Banking to MassBanking, the RRBs emerged as a low cost Bank designed to cater to the needs of Small Marginal Farmers, Rural Artisans, Petty Traders etc, who operate in Rural Areas.
The initial period was marked with innumerable challenges as the RRBs had to deal with illiterate, superstitious people, not exposed to the changing world scene. It was indeed an uphill task, as they were expected to play the role of not just a Banker, but also that of a friend, philosopher and guide, leading them on the path of development.
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Malaprabha Grameen Bank, Bijapur Grameen Bank, Varada Grameen Bank and Nethravati Grameen Banks were the four RRBs, Sponsored by Syndicate Bank, in the State of Karnataka. When the above RRBs were established without much ado way back in the 1970/80s, people may not have had the slightest idea about the ripple that these RRBs would create in the banking industry and the impact that they would have on the rural scene. In the formative years, the main concern was to reach out to the rural poor through its strong network of branches. The banks were playing a pivotal role in bringing about a metamorphosis in their respective areas of operation through its implementation of the various schemes and programmes tailored to suit the requirements of their customers.
As part of the measures which will lead to strong, efficient and vibrant Banking System, the mergers and reconstruction phase of the recommendations of the Narsimhan Committee is now being implemented and thus the four RRBs sponsored by Syndicate Bank in the State of Karnataka were amalgamated to form the KARNATAKA VIKAS GRAMEEN BANK by a Government of India notification dated 12/09/2005. The combined business level of this Bank was Rs 3263.73
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crores with Deposits of Rs.1620.46 crores and advances of Rs 1643.27 crores as on 12/09/2005.
The Banks have come a long way from those initial years and after amalgamation the Bank has a network of 403 branches cutting across the length and breadth of the nine districts forming its area of operation. Surmounting the initial problems of bringing about uniformity in the working of these Branches after amalgamation, the Bank was able to record a growth of 22.24% as on 31/03/2006 in comparison to the combined figures of the four RRBs put together as on 31/03/2005. The Bank plans to achieve business level of Rs 4500 crores by the end of March 2007. As at the close of December 2006 the total business is Rs 4050 crores comprising Deposits of Rs1957 and advances of Rs 2093 crores recpectively.
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Apart from conducting the Banking business, the Bank is intricately involved in the social fabric of the people it serves. The activities undertaken are –
Recognising that health is a neglected sector among the rural people, the Bank has been organizing various health camps free of cost. Also in association with the District Blindness Eradication Centre, it has conducted free Eye Check-up Camps followed by cataract surgery and implantation of IOL. Bank also runs a free clinic at one of the villages in its area of operation.
When the river Krishna was in spate, thousands of families were rendered homeless. Bank was quick to respond by distributing rugs at a relief camp and donating a day’s salary of the Staff to the Chief Minister’s Relief Fund.
Responding positively to a news item in the local daily, a village situated close to the Dharwad town was gifted solar light.
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This village had no electricity till the Bank took it upon itself to provide it.
Bank has adopted several balawadies run by the Akshara Foundation in the slum areas, adopted a rural school for overall development, donated steel plates to the children of Government Schools at many places, recognises meritorious rural students by awarding cash prizes etc., etc.
* To continue as the leading and visible Grameena Bank in the country by acting as acatalyst for the growth of Agriculture/ Allied and Non-Farm activities.
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* To accelerate lending and reach out to all needy customers to pursue gainful vocation and thus enable them to maximize returns for a decent living and more so committing to liberate vulnerable sections from the clutches of money lenders.
* To build vibrant and proactive financial institution with staff committed to serve by
adopting improved technological inputs and products to drive improved business growth.
* To motivate and encourage “SAVINGS” and channelise the same for disbursement
of credit to achieve alround development of people of nine districts in Karnataka true to its name “KARNATAKA VIKAS”.
Farmers
Schemes
1 “VIKAS RAITA MITRA TRACTOR YOJANA” - for Purchase of
Tractor / Trailor/Power tiller / Other Farm Equipments
2 “VIKAS BHOOMI” - for Purchase of Agri. Land
3“VIKAS ADHARA” - for Mortgage Loan against Security of NA Property
4“VIKAS JALAVARDHINI" - for Rain water Harvesting for SC / ST Farmers
5“VIKAS KISAN SAMRUDHI CREDIT CARD” - for Credit Card for all Agriculturists
6 "VIKAS GRIHA" - for Hosing Loan & Farm House 7 "VIKAS GENERAL CREDIT CARD" A rural credit card Scheme8 "VIKAS BAHUMUKHA" - Loan for any Needs
9"VIKAS AGRI-CLINIC / AGRI-BUSINESS" - for Establishment of Agri - Clinic / Agri - Business Centers
10 " VIKAS NIRANTARA" - Demand Loan on Pigmy Deposit 11 OTHER AGRI-LOANS
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Students
Advances Products
VIKAS NIRANTARA – DL on Pigmy
VIKAS SUVARNA – Jewel Loan and Over Draft
VIKAS LAGHU UDYAMI CREDIT CARD – Laghu Udyami Credit Card
VIKAS SWAROJGAR CREDIT CARD – Swarojgar Credit Card
VIKAS KIRAN – Solar Home Lighting & Water Heating Systems
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VIKAS KALYANA -Loan on pledge of Agriculture Produces
VIKAS RAITA MITRA TRACTOR YOJANA
VIKAS BHOOMI – Purchase of Agril Land
VIKAS ADHARA – Mortgage Loan against security of NA Property
VIKAS UGRANA – Rural Godown
AGRI CLINIC / AGRI BUSINESS CENTRES
VIKAS KSHEMA - Loan to Tenant Farmers / Oral lessees through SHGs
VENTURE CAPITAL FUND – Scheme for Dairy & Poultry
VIKAS JALAVARDHINI – Scheme for Rain Water Harvesting For SC/ST Farmers
VIKAS SABALA – SHG Credit Linkage Scheme
VIKAS KISAN SAMRUDHI CREDIT CARD
VIKAS SAHAJEEVANA - Joint liability Group Loans
Capital Investment subsidy scheme for commercial production units for organic inputs under National Project on Organic Farming
Credit linked Capital subsidy scheme for Technology up gradation in SSI Units
VIKAS GRIHA - (Loan for House and Farm House)
VIKAS PRATIBHA - Education Loan
VIKAS GENERAL CREDIT CARD - A Rural Credit Card Scheme
FINANCING VEHICLES - For undertaking Agricultural / Other Activity
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VIKAS BAHUMUKHA - A hassle free multipurpose / composite credit product for Agriculturists.
DEMAND LOANS TO AGRICULTURISTS
PERSONAL BANKING SCHEME (PBS) LOANS For Salaried Class & for Non- Salaried Class
VIKAS UDYAM- Loan to SME sector
LOAN TO COLD STORAGE UNITS
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BUSINESS PLAN
Bank has an ambitious target of reaching Rs.10000 Crore business level by year 2010 and this will be possible if we envisage the growth in Deposit and Advances at 27% & 41% respectively during the year 2009-10. Accordingly, the Bank has set a target of reaching business level of Rs.8100 Crore by March 2010.
Further, the Bank has to improve the qualitative aspects of business growth like Customer Service, Financial Inclusion, Formation of Farmers Clubs, Conducting Extension activities, accelerating SHG Credit Linkage, Flow of Credit to Agriculture, NPA Management and Profitability etc.
Due to the impact of Debt Relief Scheme of the Government of India, Banks advances portfolio will be affected. Hence, flow of quality credit to both priority and non-priority sector has to be substantially increased during 2009-10. Hence, emphasis shall be attached on Investment Credit to agriculture, SME Sectors, increase lending for J L and SHGs etc.
Bank has a committed and well-experienced human resource that has proved their ‘metal’ in achieving the challenging tasks before. Bank is hopeful of surpassing the Business Targets for the year 2009-10 well ahead of the scheduled time.
REGION WISE TARGETS
UNDER DEPOSITS, ADVANCES & NPA - MARCH 2009-10
(Rs in Crore)
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REGIONS DEPOSIT ADVANCES TOTAL NPA
DHARWAD Rs. 920.00 Rs. 620.00 Rs.1540.00 Rs. 14.00
HAVERI Rs. 480.00 Rs. 415.00 Rs. 895.00 Rs. 9.00
GADAG Rs. 365.00 Rs. 320.00 Rs. 685.00 Rs. 9.00
BELGAUM Rs. 715.00 Rs. 570.00 Rs.1285.00 Rs. 14.50
CHIKODI Rs. 440.00 Rs. 470.00 Rs. 910.00 Rs. 8.00
BIJAPUR Rs. 485.00 Rs. 515.00 Rs.1000.00 Rs. 8.50
BAGALKOT Rs. 550.00 Rs. 510.00 Rs.1060.00 Rs. 3.00
KUMTA Rs. 445.00 Rs. 280.00 Rs. 725.00 Rs. 16.00
TOTAL Rs.4400.00 Rs.3700.00 Rs.8100.00 Rs. 82.00
¥¥¥
SLOGAN OF THE BANK FOR THE YEAR
CONCENTRATE ON RECOVERY OF NPA
AND
EFFECTIVE MANAGEMENT OF ASSETS
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PERFORMANCE OF BANK
As on 31/03/2008 As on 31/03/2009
Number of Branches: 407
No.of
Employees: 2160
Number of Branches: 409
No.of
Employees: 2153
Rural: 309 Officers: 876 Rural: 310 Officers: 864
Semi urban: 063 Clerks: 860 Semi urban: 063 Clerks: 851
Urban: 035 MCS: 424 Urban: 036 MCS: 438
ParticularsPerformance As on
31/03/2008 31/03/2009
CAPITAL Rs. 23.97 Crores Rs. 23.97 Crores
Reserves Rs. 503.15 Crores Rs. 528.71 Crores
Deposits Rs.2756.74 Crores Rs. 3458.70 Crores
Advances Rs.2547.86 Crores Rs. 2626.28 Crores
Business Rs.5304.60 Crores Rs. 6084.98 Crores
C D Ratio 92.42% 75.93
Business per Branch Rs. 13.03 Crores Rs. 14.88 Crores
Productivity per employee Rs. 2.45 Crores Rs. 2.83 Crores
Gross Profit Rs. 124.01 Crores Rs. 49.06 Crores
Net Profit Rs. 72.13 Crores Rs. 37.68 Crores
NPA Amount Rs. 91.19 Crores Rs. 100.01 Crores
Percentage of NPA
Gross
Net
3.58%
0.00%
3.81%
0.00%
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Recovery percentage 72.74% 70.20%
Kisan Credit Cards issued 1,00,508 84,459
KCC amount disbursed Rs. 681.05 Crores Rs. 467.71 Crores
SHGs Credit Linked 7665 6182
SHG amount lent Rs. 51.61 Crores Rs. 69.46 Crores
Disbursement made Rs.1275.15 Crores Rs. 1053.41 Crores
For Agriculture Rs. 786.38 Crores Rs. 521.44 Crores
Of which KCC Rs. 681.05 Crores Rs. 467.71 Crores
No frill accounts canvassed 5,10,425 6,79,323
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Balance Sheet
AUDITED BALANCE SHEET , PROFIT & LOSS ACCOUNT
FOR THE QUARTER ENDED 30.09.2008.
BALANCE SHEET AS AT 30.09.2008
Capital & Liabilities Schedule As on 30/09/2007
As on 30/09/2008
(Rs.000’s Omitted)
Capital 1 239732
Reserves & Surplus 2 4965256
Deposits 3 28553051
Borrowings 4 4782744 3589158
Other Liabilities & Provisions 5 1896285 2168766
TOTAL :: 34984396 39515963
Properties & Assets Schedule As on 30/09/2007
As on 30/09/2008
Cash and Balance with Reserve Bank of India
6 1926315 2892970
Balance with Banks & Money at Call and Short notices
7 888865 168781
Investments 8 6735679 8965510
Advances 9 23335141 25915706
Fixed Assets 10 94325 94114
Other Assets 11 2004071 1478882
TOTAL :: 34984396 39515963
Contingent Liabilities 12 89361 105388
Bills for collection 78453 121039
PROFIT & LOSS ACCOUNT FOR THE QUARTER ENDED 30/09/2008
(Rs.000’s Omitted)
Income & Expenditure Schedule As on 30/09/2007 As on 30/09/2008
I. INCOME
Interest earned 13 1535843 1381836
Other income 14 123709 60987
TOTAL 1659552 1442823
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II. EXPENDITURE
Interest expended 15 639864 876018
Operating expenses 16 398416 450561
Provisions 162300 61000
TOTAL 1200580 1387579
III. PROFIT / LOSS :
Net profit for the year 1033521 1123779
TOTAL 1033521 1123779
IV. APPROPRIATIONS
Transfer to reserves 1033521 1123779
AUDITED BALANCE SHEET , PROFIT & LOSS ACCOUNT
FOR THE YEAR ENDED 31.03.2009.
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BALANCE SHEET AS AT 31.03.2009
Capital & Liabilities Schedule As on
31/03/2008As on 31/03/2009
(Rs.000’s Omitted)
Capital 1 239732 239732Reserves & Surplus 2 4910012 5287050Deposits 3 27567386 34587038Borrowings 4 3708275 3654285Other Liabilities & Provisions 5 1907915 2271872TOTAL :: 38688473 46039977
Properties & Assets Schedule As on 31/03/2008
As on 31/03/2009
Cash and Balance with Reserve Bank of India
6 2460284 2531982
Balance with Banks & Money at Call and Short notices
7 2066239 5231582
Investments 8 7700580 10564071Advances 9 24566695 25262784Fixed Assets 10 103367 87393Other Assets 11 1436155 2362165TOTAL :: 38688473 46039977Contingent Liabilities 12 93525 120574Bills for collection 139362 181837
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31/03/2009
(Rs.000’s Omitted)
Income & Expenditure Schedule As on 31/03/2008
As on 31/03/2009
I. INCOME
Interest earned 13 3217182 3165339
Other income 14 302468 356263
TOTAL 3519650 3521602
II. EXPENDITURE
Interest expended 15 1437362 1819504
Operating expenses 16 842241 1045841
Provisions 518708 279453
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TOTAL 2798311 3144798
III. PROFIT / LOSS :
Net profit for the year 721339 376804
TOTAL 721339 376804
IV. APPROPRIATIONS
Transfer to reserves 721339 376804
MILESTONES OF THE BANK1984:
Strengthening the Branch network by opening branches at unbanked and 12 under banked centers.
1985:
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Ranks first amongst all RRBs in the country in it total business of Rs.66.00 Crores. Massive participation under National Programme, financing 8416 beneficiaries to the extent of Rs. 3.34 Crores under IRDP and other Schemes.
1986:
With the settlement of Crop insurance claims to the tune of Rs. 77.24 lakhs – on behalf of its beneficiaries, the Bank top the list in the State in discharging its social obligations.
1989:
An year of 15 months – Development of 36.00 Crores for 20 Point economic programme which constitute 40.6% of total outstanding advances.
On all time high record in disbursement of advances to the extent of Rs. 34.00 Crores for rural development.
1993:
Former Bank Chairman, Shri.K .M .Udupa, was selected as a lone member of RRBs in the country in the study team visited to National Agricultural Development Bank – France.
As a staff Welfare measure, Bank could take a Group Savings Linked Insurance Scheme with LIC of India.It was also proposed to float a staff Benevolent Fund.
1994:
A magnanimous and beautiful Head office building was inauguarated by Syndicate Bank Chairman, Shri.B. L. Chadda.
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1996:
South India RRB Cricket Tournament was hosted by the M. G. Bank, Staff Cricket club and Bank could able to earn the title Champion of the Tournament.
With a view to ensure increase credit flow to women beneficiaries – a separate Cell has been constituted at Head Office. The Cell, in association with NGOs is instrumental in farming many SHGs.
1997:
Rs. 157.55 Crores recovery during the DCB year 1996 - 1997 which worked out to Rs. 72.4% to demand.
To commemorate the Silver Jubilee of the concept of farmers Information Exchange Clubs of SARDF, Harti, Mole, Dodwad Branches had arranged special programme on Agriculture and Rural Development.
1998:
As a commemoration of Golden Jubilee of Country’s Independence – launched a Golden Jubilee Housing Loan scheme under priority sector which faired well. An amount of Rs. 204. 00 lakhs disbursement for 166 clients and Rs. 13. 00 lakhs through education loan scheme.
1999:
One of the few RRBs in the Country to procure internet and Branch computerization.
2000:
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The corporate goal “ 1000 Crores business by year 2000 “ - This coveted goals has been surpassed and also accomplished an all time record of disbursing 290 crores advances during the year. Bank could achieve all time high profit of Rs. 18. 48 crores for the period ending 31\03\2001.
30\06\2000:
The Bank Chairman, received two prestigious National Awards. “ Rastriya Puraskar “ instituted by Indian Economic Development and Research Association, New Delhi. “National Business Excellence” award by World Economic Development Association. These awards were presented by hon’ble Union Minister for Chemical and Fertilizers, Shri. Suresh Prabhu.
PERFORMANCE HIGH LIGHTS AS ON 30/09/2009Deposits Rs. 3717.80 Crores
Advances Rs. 2864.87 Crores
Total Business Rs. 6582.67 Crores
C D Ratio 77.06
Business per Branch Rs. 15.94 Crores
Productivity per employee Rs. 3.01 Crores
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Gross Profit (Before Tax) Rs. 56.31 Crores
Net Profit (After Tax) Rs. 35.55 Crores
NPA Amount Rs. 91.62 Crores
No.of Branches:Rural Semi Urban Urban Total
310 66 37 413
No.of Employees:Officers Clerks MCS Total
934 809 441 2184
FINDINGS
It was found that almost all Borrowers of KVG Bank preferred KVG Bank because of low rates of interest and various schemes provided by the bank.
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It was found that many of the clients or borrowers are satisfied with the services provided by KVG Bank.
It was also found that KVG Bank has provided financial assistance almost all only to those who have good experience in their project.
It was found that the documentation procedure in KVG Bank is very long and difficult to follow and some times too risky also.
The recovery period for the loan taken from the KVG Bank was very short and due to this some of the proprietors are finding difficulty in proper repayment of the loan amount to the proprietors or the borrowers of the bank.
RECOMMENDATIONS
1. KVG Bank has to maintain quality
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2. The Bank should take measures to sanction financial assistance by taking less processing time so as to eliminate delay in implementing the project.
3. The bank has to keep continuos contact with the borrowers, which will help the bank in quick disbursement and improves customer relationship.
4. The bank has to conduct meetings with the borrowers and should try to solve the problems faced by the bank.
5. The recovery policy adopted by the KVG Bank should be improved, continuos interaction and follow-up definitely helps the bank to increase the ratio of recovery.
6. KVG Bank should implement computerization to a large extent and surplus staff should be removed by modifying the Organization Structure.
7. Targets should be set to the recovery officers and special incentives should be provided to those officers who achieve their objectives.
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CONCLUSION
The basic objective of any Bank is to maximize the wealth. The amount of such profits largely depends upon the magnitude of loans assisted and the recovery of those loans. Each component of recovery has two dimensions Time and Money when it comes to recovery of loans “Time is Money”.
A study of Recovery Procedure, which I have chosen as the topic of my project in Karnataka Vikas Grameen Bank, Head office Dharwad, is the main and the key department, which plays a vital role in collection of the sources of funds for the Bank which in turn will be used for refinancing for the industrial concern. Thus in the bank this department should work at its best level to make the bank a profitable one. A good recovery depends on good portfolio of loans and good loan portfolio means, low default ratio, higher percentage of recoveries to recoverable amount, lesser rescheduling, lower waivers\write offs.
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BIBLIOGRAPHY
www.kvgbank.com
www.NABARD.com
www.syndicatebank.com
www.rbi.org.in
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