fm - amreli nagrik bank - 2.pdf
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mbaTRANSCRIPT
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A
Project Repot
On
Study of Loans& Advances
At
AMRELI NAGRIK SAHAKARI BANK LTD
Under the Guidance of (in Company)
P.R.Padsala
Yogesh Gandhi
Under the Guidance of (College)
Dr, Vishal Patidar
Institution
Submitted to
Gujarat Technological University - Ahmedabad
Prepared By:
MIHIR V GADHIYA
M.B.A. Sem. II, Seat No13987
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Company Certificate
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K. K. Parekh Institute of Management Student – Amreli
Dr. Jivraj Mehta Vidhya Vihar Campus Lathi road – Amreli
Ph: (02792) 223509 fax: (02792) 223509
E-mail: [email protected]
Web: kkpimsamreli.com
DIRECTOR’S RECOMMENDATION
TO,
The Registrar
Gujarat Technological University
Ahmedabad
Subject: MBA Summer Training Project Report
Respected Sir,
I am recommending the Summer Training Project entitled- Study of Loans&
Advances prepared by GADHIYA MIHIR VINODRAI at AMRELI NAGRIK
SAHAKARI BANK LTD as the partial fulfillment of the University requirement for
the award of MBA degree of Gujarat Technology University –Ahmedabad.
Date: - Thanking You,
Place: - Amreli Yours Faithfully
Director
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S T U D E N T D E C L A R A T I O N
I the undersigned student GADHIYA MIHIR VINODRAI of K. K. Parekh Institute
of Management Studies – Amreli M.B.A. II Semester, hereby declare that, the
project on Study of Loans& Advances my own work.
In the partial fulfillment of Master Degree of Business Administration, I had
undergone project work at NAGRIK SAHAKARI BANK LTD under the guidance
of Yogesh Gandhi K. K. Parekh Institute of Management Studies – Amreli and
submitted to Gujarat Technological University, Ahmedabad.
This project work is my original work and has not been submitted to any
where earlier.
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PREFACE
Being a management student, it is not enough for us to have a look only on the
theoretical aspect of the studies. As per our curriculum of Gujarat technological university
Ahmadabad all student of MBA have to under go training for 6 weeks at industries unit or
service sector and to prepare its report.
The main objective behind it is to make students familiar with the practical
business environment. Luckily, I took the grand training at the well-known service sector
of the banking services in Amreli Nagrik Sahakari Bank Ltd., Amreli.
This report deals exclusively with the concerned unit. This is the most appropriate
looking. I have tried to deal with it thoroughly and yet in a simple and lucid manner.
The main thread of training has been closely followed and it is sincerely hope that
the report will thus achieve its purpose.
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ACKNOWLEDGEMENT
The work presented here is not a single effort each and every person is associated
with this project has contributed in the successful accomplishment of this piece of work
and is being thanked for their efforts.
I would like to express my warm gratitude towards Mr.P.R.Padsala (Branch
Manager) and Mr. Yogesh Gandhi (Assistant Manager) for giving such a great opportunity
for learning and developing myself during the project.
I also thank my esteemed professors whose diligent efforts made this report
possible and to all those who may have contributed to this work .
Last but not the least, my parents deserve my special thanks for being patient and
helping me while I was busy working on this report.
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EXECUTIVE SUMMARY
As a first year MBA Programme, I carried out my research project work. My topic
is “To study loans & advances”.
In order to study the of the loans & advances ANSB, the project starts with the
introduction to industry profile and company profile and also the general study of the all
department of the company.
The research study adopted was descriptive research also was also used the
secondary data like annual report, some books and internet website.
After collecting the relevant information from the ANSB the data were analyzed
with the help of different various statistical tools, charts and graphs. From this analysis, I
was able to draw upon the various conclusions relating to of the loans & advances
company.
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INDEX
Chapter
no.
Particular Page
no. 1 Industry Profile 2
1.1
1.2
1.3
Introduction
History of Banking in India
Introduction to Co-Operative Bank
3
5
7
2 Company profile
2.1
2.2
2.3
2.4
2.5
Introduction to ANSB Ltd.
Introduction
History of ANSB
Management Structure
Board of Director
11
12
13
14
15
3 Four Functions of Bank
3.1
Product of banks 16
Analysis of Bank 17
Product Portfolio of ANSB Ltd.
Saving Accounts
Current Accounts
Fixed Deposit
Recurring Deposit
18
3.2 Human Resource Management
Introduction
Scope of HRM
Information about HRM of ANSB Ltd
Welfare Activity
19
20
22
25
3.3 Marketing Management
Introduction
Organization of Marketing Dept.
Product Planning
Advertising
26
27
28
29
30
3.4 Finance Department
Introduction
Capital Structure
Financial Statement
31
32
33
33
4 Research Methodology 35
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
Introduction
Define the Problem
Objective of the study
Rationale of the study
imitations of the study
Data collection
Data analysis & interpretation
Finding and suggestions
Conclusion
Bibliography
36
37
38
46
47
48
48
49
49
50
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INTRODUCTION
TO
BANKING
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INTRODUCTION TO BANKING A bank is a commercial or state institution that provides financial services, including
issuing money in various forms, receiving deposits of money, lending money and
processing transactions and the creating of credit.
A bank is a commercial or state institution that provides financial services, including
issuing money in various forms, receiving deposits of money, lending money and
processing transactions and the creating of credit with bank.
Technology is having a major impact on the banking industry. For example, many routine
bank services that; required a teller, such a withdrawals or deposits, are now available
through ATMs that allow people to access their accounts 24 hours a day. Also, direct
deposit allows companies and governments to electronically transfer payment into various
accounts. Further, debit cards, which may also used ATM cards, instantaneously deduct
money from an account when the card is swiped across a machine at a stone‟s cash
register. Electronic banking by phone or computer allows customer to pay bills and
transfer money from one account to another. Though these channels, banks customer can
also access information such as account balances and statement history. Some banks have
begun offering online account aggregation, which makes available in one place detailed
and up-to date information on a customer‟s accounts held at various institutions.
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HISTORY OF BANKING IN INDIA Gone are days when the most efficient bank transferred money from without a sound and
effective banking system In India cannot have a healthy economy. The banking system of
India should not only be hassle free but it should be able to meet new challenges posed by
the technology and any other external and internal factors.
For the past three decades India‟s banking system has several outstanding achievements to
its credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even
to the remote comes of the country. This is one of the main reasons of India‟s growth
process.
The government‟s regular policy for Indian bank since 1969 has paid rich dividends with
the nationalization of 14 major private banks of India.
Not long ago, an account holder had to wait for hours at the bank counters for getting a
draft or for withdrawing his own money. Today, he has a choice one branch to other in
two days. Now it is simple as instant messaging or dials a pizza. Money be come the order
of the day.
The first in India, though conservative, was established in 1786. From 1786 till today, the
journey of Indian banking Systems can be segregated into four district phases. They are
asunder.
Early phase from 1786 to 1969 of Indian Banks (Pre-nationalization)
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
New phase of Indian Banking System with the advent of Indian Financial &
banking Sector reforms after 1991. (Liberalization)
Current scenario.
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TYPES OF BANKS
Banks‟ activities can be divided into
1. Retail Banking dealing directly with individuals and small businesses; business
banking, providing services to mid-market business; corporate banking, directed at
large business entities.
E.g. Private banks, Commercial banks, Postal saving banks.
2. Investment Banking relating to activities on the financial markets.
E.g. Merchant banks, Venture capital firms.
3. Universal banking which performs both the activities.
SERVICES OFFERED BY BANKS
The basic type of services offered by a bank depends upon the type of bank and the
country, services provided usually include:
Taking deposits from their customers and issuing current or check accounts and
saving accounts to individual and businesses.
Extending loans to individuals and businesses.
Cashing check
Facilitating money transactions such as wire transfers and cashier‟s checks
Issuing credit cards, ATM cards, and debit cards.
Storing valuables, particularly in a safe deposit box.
Cashing and distributing bankrolls.
Consumer & commercial financial advisory services.
Pension & retirement planning
Telephone banking
Online banking
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INTRODUCTION TO CO-OPERATIVE BANKING Co-operative banking in India has made substantial progress in dissemination of banking
services based on co-operative principles. In view of the special thrust on financial
inclusion, co-operative banking has acquired renewed significance in the Indian financial
system.
The co-operative banking structure in India comprises two main components:
A. Urban co-operative banks
B. Rural co-operative credit institutions
While urban co-operative banks have a single tier structure, rural co-operatives have a
complex structure.
The Urban co-operative banks in India are supervised by RBI and Rural co-operative
credit institutions in India are supervised by NABARD. State Registrars of co-operative
credit societies also regulate certain function of both urban and rural co-operative banks.
These Rural co-operative credit institutions focus on providing typically medium to long-
term loans for making investments in agriculture, rural industries, and lately housing. The
structure of rural co-operative banks is not uniform across the states of the country, and
arises significantly from one state to another. Rural co-operative credit institutions have
two distinct structures:
1) Short-term co-operative credit structure (STCCS)
2) Long-term co-operative credit structure (LTCCS)
Within the short-term co-operative credit structure (STCCS), primary agricultural credit
societies (PACS) at the village level from the base level, while district central co-operative
banks (DCCBs) are placed at the intermediate level and the state co-operative banks
(SCBs) at the apex level. The STCCS mostly provide crop and other working capital loans
primarily for a short period to farmers and rural artisans.
The long-term structure of rural co-operatives comprises state co-operative agriculture and
rural development banks (SCARDBs) at the state level, and primary co-operative
agriculture and rural development banks (PCARDBs) at the decentralized district or block
level. These institutions focus on providing typically medium to long-term loans for
making investments in agriculture, rural industries and lately housing.
Given the significant role played by Urban co-operative banks in providing banking
services to the middle and lower income people, the reserve bank continued to take
initiatives to strengthen these banks.
The term Urban co-operative banks, though not formally defined, refers to primary co-
operative banks located in urban and semi-urban areas. These banks, till 1996, were
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allowed to lend money only for non-agricultural purposes. This distinction does not hold
today. These banks were traditionally centered on communities, localities work place
groups. They essentially lent to small borrowers and businesses. Today, their scope of
operations has widened considerably.
The origins of the urban co-operative banking movement in India can be traced to the
close of nineteenth century when, inspired by the experiments related to the cooperative
movement in Britain and the cooperative credit movement in Germany such societies were
set up in India. Cooperative societies are based on the principles of cooperation, - mutual
help, democratic decision making and open membership. Cooperatives represented a new
and alternative approach to organization as against proprietary firms, partnership firms and
joint stock companies, which represent the dominant form of commercial organization.
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THE BEGINNING OF COOPERATIVE BANKS IN INDIA
The first known mutual aid in India was probably the “Anyonya Sahakari Mandali”
organized in the erstwhile princely state of Baroda in 1889 under guidance of Vithal
Laxman also known as Bhausaheb Kavthekar.
Urban cooperative credit societies, in their formative phase, came to be organized on a
community basis to meet the consumption oriented credit needs of their members. Salary-
earners‟ societies inculcating habits of thrift and self-help played a significant role in
popularizing the movement, especially amongst the middle class as well as organized
labor. From its origins then to today, the thrust of UCBsm historically, has been to
mobilize savings from the middle and low-income urban groups and purvey credit to their
members many of which are longed to weaker sections.
The enactment of Cooperative Credit Societies Act, 1904, however, gave the real impetus
to the movement. The first urban cooperative credit society was registered in Canjeevaram
(Kanjivaram) in the erstwhile Madras province in October 1904. Amongst the prominent
credit societies were the Pioneer Urban in Bombay (November 11, 1905), the No. 1
Military Accounts Mutual help Cooperative Credit Society in Poona (January 9, 1906),
Cosmos in Poona (January 18, 1906), Gokak Urban (February 15, 1906) and Belgaum
Pioneer (February 23, 1906) in the Belgaum district, the Kanakavli-Math Cooperative
Credit Society and the Varavade Weavers, Uraban Credit Society (March 13, 1906) in the
South Ratnagiri (now Sindhudurg) district. The most prominent amongst the early credit
societies was the Bombay Urban Cooperative Credit. Society, sponsored by Vithaldas and
Lallubhai Samaldas established on January 23, 1906.
The Cooperative Credit Societies Act, 1904 was amended in 1912, with a view to broad
basing it to enable organization of non-credit societies.
The Maclagan Committee of 1915 was appointed to review their performance and suggest
measures for strengthening them. The committee observed that such institutions were
eminently suited to cater to the needs of the lower and middle-income strata of society and
would inculcate the principles of banking amongst the middle classes. The committee also
felt that the urban cooperative credit movement was move viable than agricultural credit
societies. The recommendations of the committee went a long way in establishing the
urban cooperative credit movement in its own right.
The constitutional reforms which led to the passing of the government of Indian Act in
1919 transferred the subject of “Cooperation” from Government of India to the provincial
Governments. The Government of Bombay passed the first state Cooperative societies Act
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in 1925 “Which not only gave the movements to its size and shape but was a pace setters
of cooperative activities and stressed the basic concept of thrift, self-help and mutual-aid”.
Other states followed. This marked the beginning of the second phase in the history of
cooperative credit institutions.
There was the general realization that urban banks have a important roll to play in
economic constructions. This was asserted by a host of committees.
The Indian central banking enquiry committee (1931) felt that, urban banks have a
duty to help the small business and middle class peoples.
The Mehta-Bhansali committee (1939) recommended that those societies which
had fulfilled the criteria of banking should be allowed to work as banks and
recommended an Association for this bank.
The co-operative planning committee (1946) went on record to say that urban
banks have been the best agencies for small people in whom joint stock banks are
not generally interested.
The rural banking enquiry committee (1950), impressed by the low cost of
establishment and operations recommended the establishment of such banks even
in places smaller than taluka town.
In the year 1958-59, RBI studied the urban co-operative banks and report was published in
1961, emphasizing the need to establish primary urban co-operative banks in new centers
and suggested that state government land active support to their development.
In 1963, Varde committee recommended that such banks should be organized at all urban
centers with a population of 1 lakh or more and not by any single community or cast. The
committee introduced the concept of minimum capital requirement.
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INTRODUCTION OF ANSB BANK
ANSB Bank was received an „in-principal‟ approval from the reserve bank of India (RBI)
to set up a bank in the cooperative sector, in 1964 during the period of nationalization of
the Indian banking sector in India. ANSB was incorporated in July 1964 in the name of
„Amreli Nagrik Sahkari Bank Limited‟, with registered office in Amreli, India.
The company operates through one main branch in Amreli District. The bank has one
branch at Chital, Amreli and bank day to day business is carried through on a real time
online basis. Customers in main branches can be serviced through the company‟s
telephone banking facilities.
ANSB bank conducts retail-banking services. The objective of the retail bank business
segment is to provide a full range of financial products and services. Its operations through
three core business segments, which include: Deposits, advances, and other services.
Its deposits banking business segment targets large, manufacturing companies in the
Amreli district. The business segment provides wide range of banking services including
current account, saving account, special saving account, fixed deposit account, and
recurring services. Its second business segment, advances against Gold ornaments and
land and building and land and building.
Meanwhile, its third business segment, other services, provides locker facility, drafts are
issued by banks for particular location in India and collects the cheque and bills of
outstations.
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HISTORY OF ANSB BANK On 20/08/1964 the bank was inaugurates with the hand of collector shree Govindsinghji
Chudasama. The bank was registration number 1011 under cooperative Act. 1960. on 7
august 1967; it has been changed to 8905. On 11/02/1998 the license no, was
UBD/GUJ/1546 was received from RBI.
The first head office of bank opened at JUBILEE DHARMSHALA and it remained there
for the period from 1964 to 1998. from 1979 to1985 the banking work was carried on at
“NAGRIK BHAVAN”, Haveli road, Amreli. It was bank‟s own premises. Later in the
year 1985 to 1998, it was shifted to ”JIVRAJ BHAVAN”, Dr.. JIVRAJ MEHTA ROAD,
AMRELI.
ANSB was established in 1962 Shri Premjibhai Leava of amreli (MLA) of that period
who was the chairman of the bank and the M.D. was Shri Gokulbhai patel (MLA) Liliya
Taluka, who started with 415 person of staff in rental building with a start capital of 100
lac. The share value was 10/- each. The main activities of bank, share issue, collect
deposits, advances for secured & unsecured and the function was followed as per RBI
guidelines. The registration with RBI was completed in 1995 and RBI license was
received in 1995 and today this SAHAKARI Bank is operating as per directives of RBI
(Reserve Bank Of India). Act1949 by follows the Gujarat state co-operative. Bank have
achieved the resects beyond expectation on in the services concepts.
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MANAGEMENT STRUCTURE
CHAIRMAN
MANAGING DIRECTOR
MANAGER
OFFICERS
CLERK
PEON / WATCHMAN
DIRECTOR
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BOARD OF DIRECTORS
Mr. P.P.Sojitra (Chairman)
Mr. Manoj Gosai (M.D.)
Mr. P.R.Padasala (Manager)
Mr. Mansukh Dhanani
Mr. Hanu Dhorajiya
Mr. Paresh Acharya
Mr. Ashok Kothiya
Mr. Arjun Sosa
Mr. Jayesh Nakrani
Dr. Dilip Unadkat
Mr. kalu Raiyani
Mrs. Charulata Gosai
WORKING AREA
Amreli District
REGESTERED OFFICE
ANSB BANK HOUSE,
NAGRIK BHAVAN,
KERIYA ROAD,
AMRELI-365601.
TEL:222000 /231539
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ANALYSIS OF BANK
The bank with its history of 42 glorious years is moving fast ahead to become the state‟s
first scheduled Co-operative Bank, some underlining features sets it apart from other
banks and which have contributed greatly towards its growth. Some of the HIGHLIGHTS
of the bank schemes and banking business are as follows:
1) Deposit Insurance Scheme covers all deposits up to 1 lack.
2) The bank accepts deposits for maximum 10 years.
3) All types of advances on reasonable terms and conditions.
4) Competitive interest rates on advances.
5) Attractive deposit schemes to suit the needs of deposit accounts.
6) Nomination facility available on all types of deposit accounts.
7) Offers higher interest rates on deposits than other nationalized banks.
8) 15% dividend to its shareholders from last six years.
9) Issuing of demand drafts at all major cities and business centers.
10) “A” class audit classification.
11) Extended banking hours: 8.00 a.m. to 8.00 p.m.
12) Lockers facility available.
13) Draft facility to all its members and non-members.
14) Fully computerized operations.
15) Courteous, quick and efficient services.
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PRODUCT PORTFOLIO OF ANSB
SAVING ACCOUNTS:
A Saving bank Account (SB account) is meant to promote the habit of saving among the
people. It also facilitates safekeeping of money. In this scheme fund is allowed to be
withdrawn whenever required, without any condition. Hence a saving account is a safe,
convenient and affordable way to serve your money. Bank deposits are fairly safe because
banks are subject to control of the Reserve Bank of India with regard to several policy and
operational parameters. Bank also pays you a minimal Interest for keeping your money
with them.
These accounts are primarily meant to in calculate a sense of saving for the future,
accumulating funds over a period of time. Whatever occupations, we are confident that
you will perfect banking solution.
Features:
The minimum amount to open an account in ANSB Ltd. is Rs. 100. If cheque books
are also issued, the minimum balance of Rs. 500 has to be maintained. One cheque
book is issued to a customer at a time.
A savings account can be opened either individually or jointly with another individual.
In a joint account, only the sign of one account holder is needed or write a cheque. But
at the time of closing an account, the signs of both the account holders are needed.
Returns:
The interest rate of saving bank account in ANSB Ltd. is 3%. In saving bank account,
bank follows the simple interest method. The rate of interest may change from time to
time according to the rules of reserve Bank of India. One can withdraw his/her money
by submitting a cheque in the bank and details of the account i.e. the money deposited,
withdrawn along with the dates and balance, is recorded in the passbook.
Advantages: It is much safer to keep your money at a bank than to keep a large amount of cash in your
home. Bank deposits are fairly safe because banks are subject to control of the reserve
Bank of India with regard to several policy and operational parameters. The Federal
Government insures your money. Saving bank account does not have any fixed period for
deposit. The depositor can take money from his/her account by writing a cheque to
somebody else or submitting a cheque directly. And ANSB Ltd. also gives computerized
facility through with one do the transactions like withdrawals, deposit, statement of
account, etc. and these transactions are maintained in computers.
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All saving accounts have monthly statement free statements are printed in books on their
passbook which is issued by a bank itself, cheque books are given to account holders on
demand.
The saving accounts offered by bank are:
Regular saving account.
Special saving account
An easy-to-operate saving account that allows you to issue cheque, draw demand drafts
and withdraw cash. Check-up on your balances from the comfort of your home or office
through Phone Banking Check with stamped your account number on each cheque leaf for
enhanced security.
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CURRENT ACCOUNT:
Current account is primarily meant businessmen, firms, companies, and public enterprises,
etc. that have numerous daily banking transactions.
In a current account, a customer can deposit any amount of money any number of times.
He can also withdraw any amount as many times as he wants, as long as he has fun as to
his credit.
Current accounts are meant neither for the purpose of earning interest nor for the purpose
of saving but only for convenience of the business.
ANSB Ltd. Current Account provides a facility of current banking. Due to current account
one can have the power location access to you account from our branches located in
Amreli city. Not only have that, one can done most of your banking transactions from the
comfort of your office or home without stepping out and its matter to just issue checks.
ANSB Ltd. makes its business to help one with his business by offering him a current
account with all the benefits one need to stay ahead of competition.
ANSB Ltd. understands that running a business requires time and money, also that
business needs are constantly evolving. That‟s why ANSB Ltd. provides one current
account option to exclusively his/her business whatever the size or scope. Current account
and control business operation centrally. Enjoy facilities like phone banking that helps you
to check your balance and transaction details fund out the states of your cheque or stop
check payment. And statements are provided to them on their demand.
Regular Current Account (Minimum AQB=Rs, 1000) A current account is ideal for carrying out day-to-day business transactions. With the
ANSB Ltd. Regular Current Account, you can access your account through phone banking
facility provided by bank, pay using cheque or deposit cheque. Regular Current Account
requires you to maintain an average quarterly balance of only Rs. 1000.
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Convenient Banking:
Deposit your cheque in branch of a city to your account make payments ANSB Ltd.
locating using cheque facility at a nominal rate per transactions.
FIXED DEPOSIT
Long-term investments from the chunk of everybody‟s future plan. An alternative to
simply applying for loans,
fixe d deposits allow
you to borrow from four own funds for a limited period, thus fulfilling your needs as well
as keeping your savings secure. Thus fixed deposit is a betteption for middle class people
who cannot afford the higher rA fixed deposit is meant for those investors who want to
deposit a lump sum of money for a fixed period: say for a period of 15 days to 5 years and
above, thereby earning a higher rate of interest in return. Investor gets a lump sum
(principal + interest) at the maturity of the deposit.
Bank‟s fixed deposits are one of the most common savings scheme open to an average
investor. Fixed deposits also give a higher rate of interest than a saving bank account. The
facilities vary from bank to bank. Some of the facilities offered by bank are overdraft
(Loan) facility on the amount deposited, premature withdrawal before maturity period
(which involves a loss of interest) etc.
Features:
Bank deposits are fairly because banks are subject to control of Reserve Bank of India
(RBI) with regard to several policy and operational parameters. The banks are free to offer
varying interests in fixed deposits of different maturities. Interest is compounded once a
quarter, leading to a somewhat higher effective rate.
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The minimum deposit amount varies with each bank. It can range from as low as Rs. 100
to an unlimited amount with some banks. Deposits can be made in multiples of Rs.100/-
Before opening a fixed deposit account, try to check the rates of interest for different
periods. It is advisable to keep the amount in five or ten small deposits instead of making
one big deposit. In case of any premature withdrawal of partial amount, then only one or
two deposits need to be prematurely enchased. The loss sustained in interest will, thus, be
less than if one big deposits where to be enchased. Check deposit receipts carefully to see
that all particulars have been properly and accurately filled in the thing to consider before
investing in fixed deposits is the rate of interest and the inflation rate. A high inflation rate
can simply cheap away your real returns.
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Returns: The rate of interest for fixed deposits of bank varies between 4 and 1 The rate of interest
for fixed deposits of bank varies between 4 and 11 % depending upon the maturity period
(duration) of the FD and the amount invested. Interest rate also varies between each bank.
A bank FD does not provide regular interest income, but a lump-sum amount on its
maturity. Some banks have facility to pay interest every quarter or every month, but the
interest paid may be at a discounted rate in case of monthly interest. The interest payable
on FD can also be transferred to saving bank or current bank account of the customer. The
deposit period can vary from 15, 30 or 45 days to 3 months, 6 month, 1 year, 1.5 years to
10 years.
inc
Duration Interest rate (%) per annum
46-90 days 6.0%
91-180 days 6.5%
181-365 days 7.0%
1-2 years 9.5%
2-3 years 9.0%
3-5 years 9.55
Above 5 years 8.0%
Advantages:
Bank deposits are the safest investment after Post Office savings because all bank
deposits are insured under the Deposit Insurance & Credit Guarantee scheme of India. It is
possible to get a loan up to 75-90% of the deposit amount from banks against fixed deposit
receipts. The interest charged will be 2 % more than the rate of interest earned by the
deposit. With effect from A.Y. 1998-99, investment on bank deposits, along with other
specified incomes, is exempt from income tax up to a limit of Rs. 12000/- under section
80L. also, from A.Y. 1993-94, bank deposits are totally exempt from Wealth Tax. The
1995 finance bill proposals introduced Tax Deduction at Source (TDS) on fixed deposits
on interest incomes of Rs. 5000/- and above per annum
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Guarantee scheme of India. It is possible to get a loan up to 75-90% of the deposit a
RECURRING DEPOSIT:
The recurring Deposit in bank is meant for someone who wants to invest a specified
some of money on a monthly basis for a fixed rate of return. At the end, you will get the
principal sum as well as the interest earned during the period. The scheme, a systematic
way for long term savings, is one of the best investment options for the low income
groups.
Features: The minimum investment of Recurring Deposit varies from bank to bank but usually it
begins from Rs. 100/-. There is no upper limit in investing. The rate of interest varies
between 7 & 11% depending on the maturity period and amount invested. The interest
calculated quarterly or as specified by the bank. The period of maturity ranges from 6
months to 10 years.
The deposit shall be paid as monthly installments and each subsequent monthly
installment shall be made before the end of the calendar month and shall be equal to the
first deposit. In case of default in payment, a default fee is chargeable for delayed deposit
at the rate of Rs. 1.50/- for every Rs. 100 per month for deposits up to 5 years and Rs. 2/-
per Rs. 100/- in case of longer maturities.
Since a recurring deposit offers a fixed rate of return, it cannot guard against inflation if it
is more than the rate of return offered by bank. Worse, lower the gap between the interest
rate on a recurring deposit and inflation, lower your real rate of return. Premature
withdrawal is also possible but it demands a loss of interest.
Returns:
The rate of interest varies between 7 & 11% depending on the maturity period and amount
invested. The interest is calculated quarterly or as specified by the bank.
Advantages:
Some nationalized banks are giving more facilities to their customers: ANSB gives
recurring deposit facility to its customers. They can transfer their amount to the account if
payment exceeds Rs. 20000. Tax benefit on the interest earned on recurring deposit up to
Rs. 12000. tax deductible at source if interest paid on deposit exceed Rs.5000 per
customer, per year, per branch.
- 34 -
HUMAN
RESOURCE
MANAGEMENT
- 35 -
INTRODUCTION TO HRM It is the person who poses skills, abilities and aptitude that offer competitive advantage to
a firm. It is only Human Resource that is capable of deciding, implementing and
controlling activities. No computer can be substituted human brains, no machines can be
run without intervention and no organization has mandate to exist if it can not serve
people‟s needs. Human Resource Management is a study about people in organization.
How they are hired, trained, compensated, motivated & maintained.
Definition:
HRM is also a management function concerned with hiring, motivating and maintaining
people in an organization. It focuses on people in organization.
HRM is a management function that helps manager recruit, select, train, develop members
for an organization.
- 36 -
SCOPE OF HRM:
- 37 -
INFORMATION ABOUT HUMAN RESOURCE
MANAGEMENT OF ANSB LTD
Hours of work
Normally 12 hours, but subject to completion target
Working in shift
Normally there are four shifts into.
1st shift is 8:00 A.M. to 3:00 P.M.
2nd
shift is 10:00 A.M to 5:00 P.M.
3rd
shift is 11:00 A.M. to 6:00 P.M.
4th shift is 1:00 P.M. to 8:00 P.M.
Weekly off:
Saturday: Half Day
Sunday: Off
Pay & salary:
Provident fund, Loan, savings are deducted from salary
Scheme:
Provident fund
Pension
Life insurance of employees
- 38 -
WELFARE ACTIVITIES Welfare activities mainly include retirement benefits, gratuity, provident fund, and pension
plan, Transfer Township etc.
Gratuity is received at the time of retirement.
It is the duty of the organization to look after the employee‟s welfare, health and safety.
The facilities provided by Amreli Nagrik Sahakari Bank Ltd. to their employees are as
follows:
I. If any worker meets with a sudden accident or loose his power to work, the Bank
will give him/her Pension facility
II. The company has a well – organized library in which newspaper, magazine and
books relating to Banking.
III. The company also gives retired employee Pension facility.
IV. The company provided vehicle loan and other allowances.
V. Leave
VI. Life insurance is given to the employees at Rs. 50000
- 39 -
MARKETING
MANAGEMENT
- 40 -
INTRODUCTION OF MARKETING MANAGEMENT:
Marketing in common practice is often described as to make the people aware about the
products or service accompany offers and satisfy the expectations of customers with those
offerings and make people prefer your product to buy with the ultimate goal of
maximizing organizational profit.
The modern concept of marketing focuses on the consumers and satisfaction of their
expectations, which is said to be a consumer-oriented approach. Effective marketing
management is necessary for the success and profitability of a company.
Traditional definition of marketing is the business process by which products are attached
with markets and through with the transfer or ownership are affected.
According to American marketing cost of performance of or business activities that direct
the flow services from producers to customers.
Modern concept of marketing says that marketing is the creation and delivery of a standard
of living to the society.
According to Kotler, ”marketing is human activity directed at satisfied their means and
wants through exchange process. ”
Marketing management is the analysis planning implementation and controls the programs
designs to maintain benefit exchange with target buyers for the purpse of achieving
organization objectives. Marketing concept aims services customer depend by offering right
product right place to right customers.
- 41 -
ORGANIZATION OF MARKETING DEPARTMENT
The banking activities are related to finance.
Banks main activities are to collect deposit & lend it to needed peoples. So the deposit is
raw material for the bank & the money collected through deposit are the products to lend
to needed people & to interest on that.
Therefore, the lending of money is product. It is called advance loan, credit etc. so, the
marketing management means credit management.
Credit department at Head Office are works as marketing department & the product
(Loans & Advances) are sold through its branches.
Product planning
For the Bank, product planning means to plan for various deposits schemes & loan
schemes.
Product Provided by Bank:
Deposit Schemes
Current Account
Saving Account
Special Saving Account
Fixed Deposit Account
Recurring
Loan & Advances
Hypothecation
Clean c.c.
Loan against J.J.
Industrial loan
Loan against J.N
Staff housing Loan
Education Loan
- 42 -
n against F. D .R. & O .D.
Loan against gold ornaments
Loan s against land & buildings
ADVERTISING
Advertising is the best communication medium through which company can send its
message regarding product or anything to its consumer in proper.
The company has no specific advertising budget but the company is providing informative
booklets or hamlets or catalogs to their regular and potential customers to inform them
about its product and changes taking in them. The company has not more scope for
advertisement. The company believes that customer‟s satisfaction is best advertisement.
Banks do not expense more for advertising.
Basically the banks market is mainly rural & agriculture. However, various instruments are
used for advertising of the bank & it‟s new scheme related to deposits & advances. The bank
advertises through newspapers, local TV channels etc.
- 43 -
FINANCE
DEPARTMENT
- 44 -
- 45 -
INTRODUCTION
Financial management is the managerial activity which is concerned with the planning and
controlling of the firm‟s financial resources. It was a branch of economics till 1980 and as
a separate discipline of the firm:
The subject of financial management is immense of significance to both academics and
practicing managers. It is great significance to academicians because the subject is still
developing and there still certain areas where controversies exist for no undivided solution
have been reached as yet. Practicing managers are interested in this subject because among
the most crucial decision of the firm are the theory of finance management and an
understanding of the theory of finance management provides them with conceptual and
analytical insight to make those decision.
Finance is regarded as the lifeblood of a business organization. The financial management
is concern with procuring of financial resources & its judicious utilization with a view to
maximize the shareholders wealth. The finance function is more vital crucial to
organization. Hence there is need for sound and efficient organization for the finance
function. A firm should give proper & due attention to organization of its finance
department. Finance function differs from firm to firm. It depends on various factors such
as size & nature of firm, firm‟s business capability and financial philosophy of the
organization.
- 46 -
CAPITAL STRUCTURE Capital structure refers to the mix of funds like debenture long term sources of funds like
debenture long term sources of fund like preference and equity shares. Capital including
their capital structure these companies do not plan for the short term but they may fact
difficulties in raising funds to finance their activates so a company should plan its capital
structure to maximize the use of funds and to be able to adopt more easily to the company
conditions. The Capital structure is planned initially when a company is incorporated the
initial Capital structure should be designed structure and the financial decision should be
made to achieve the target capital structure.
ANSB Bank Ltd is the co-operative banking sector. So, the shareholders of the bank are
known as members of co-operative society. Individual or any co-operative the member of
bank.
- 47 -
FORM OF BALANCE SHEET AMRELI NAGRIK SAHAKARI BANK LTD., AMRELI
BALANCE SHEET AS ON 31ST
MARCH 2010
Liability Schedule
No.
As on 31/03/2010 As on 31/03/2009
Capital
Reserve & surplus
Deposits
Borrowings
Other liability
1
2
3
4
5
33557310.00
84661445.63
725311042.58
0.00
10981152.73
28926410.00
76688674.69
536644671.92
0.00
23648838.55
Total Liability 844510950.94 665908595.16
Assets Schedule
No.
As on 31/03/2010 As on 31/03/2009
Cash in reserve bank
Cash in other bank
Investment
Advances
Fixed assets
Other assets
6
7
8
9
10
11
7181314.42
132708304.23
231088312.00
458155809.62
14051434.67
11325776.00
3069270.15
124014488.19
109959785.00
405937213.15
14192767.67
8735071.00
Total Asset 844510950.94 665908595.16
- 48 -
AMRELI NAGARIK SAHAKARI BANK LTD.
PROFIT &LOSS ACCOUNT FOR
THE YEAR ENDED ON 31ST
MARCH 2009
PARTICULARS SCHEDULE
NO.
AS ON
31/03/2009
AS ON
31/03/2010
I INCOME
Interest earned 12
69768342.34
76702733.23
Other income 13 5442412.05 4873083.72
TOTAL 75550754.39 81575816.95
II EXPENDITURE
Interest expended 14
37730902.07
45315558.00
Operating expenses 15 24354224.93 21148916.01
Provision expenses 0.00 0.00
TOTAL 62085127.00 66464474.01
III PROFIT & LOSS
Profit for the year
13465627.39
15111342.94
Profit brought forward 13270850.00 13465627.39
TOTAL 26736477.39 28576970.33
APPROPRIATION
Transfer to statutory reserves 2484107.00
2542790.00
Transfer to other reserves
7848655.00
3924190.00
Proposed dividends 2948088.00
3704166.00
Balance carried over to B/S
13465627.39
15111342.94
TOTAL 26736477.39 25282489.33
- 49 -
SCHEDULE – 1 CAPITAL
PARTICULARS AS ON
31/03/2009
AS ON
31/03/2010
Authorized capital (50,00,000 share of Rs. 10 each) 50000000.00 50000000.00
Issued 28926410.00 33557310.00
TOTAL 28926410.00 33557310.00
SCHEDULE –2 RESERVE & SURPLUS
PARTICULARS AS ON
31/03/2009
AS ON
31/03/2010
STATUTORY RESERVE
Opening balance 15565472.91 19077399.91
Addition during the year 3511927.00 3561465.00
Deduction during the year 0.00 0.00
TOTAL OF STATUTORY RESERVE 19077399.91 22638864.91
OTHER RESERVES
Opening balance 45969857.10 44145647.39
Addition during the year 6220950.94 3776590.39
Deduction during the year 5694116.65 1011000.00
TOTAL OF OTHER RESERVE 46496691.39 46911237.78
Balance in profit & loss account 13465627.39 15111342.94
TOTAL 79039718.69 84661445.63
- 50 -
SCHEDULE – 3 DEPOSITS
PARTICULARS AS ON
31/03/2009
AS ON
31/03/2010
Demand deposit (from others) 46651140.98 42743069.09
Saving deposits (from others) 97162265.46
138039668.76
Term deposits (from others) 392831265.48 544528304.73
TOTAL 536644671.92 725311042.58
SCHEDULE – 4 BORROWINGS
PARTICULARS AS ON
31/03/2009
AS ON
31/03/2010
Borrowing capital 0.00 0.00 TOTAL
0.00 0.00
SCHEDULE –5 OTHER LIABILITIES & PROVISIONS
PARTICULARS AS ON
31/03/2009
AS ON
31/03/2010
Bills payable 343081.00 334734.00
Interest accrued 4157615.99 4709399.00
Other liabilities 19148141.56 5397019.00
TOTAL 23648838.55 10981152.73
- 51 -
SCHEDULE – 6 CASH IN HAND
PARTICULARS AS ON
31/03/2009
AS ON
31/03/2010
Cash in hand 3069270.15 7181314.42
TOTAL 3069270.15 7181314.42
SCHEDULE –7
BALANCES IN BANKS & MONEY AT CALL & SHORT NOTICE
PARTICULARS AS ON
31/03/2009
AS ON
31/03/2010
INVESTMENT IN INDIA
1.Balances in banks
(A) In current accounts 32831486.19 48125302.23
(B) In other deposit accounts 91583002.00 84583002.00
2. Money at call & short 0.00 0.00
TOTAL 124414488.19 132708304.23
SCHEDULE –8 INVESTMENT
PARTICULARS AS ON
31/03/2009
AS ON
31/03/2010
INVESTMENT IN INDIA
(A) Government securities 94154785.00 168443312.00
(B) Other approved securities 0.00 0.00
(C) Shares of GSC+IFFCO 10505000.00 6505000
(D) Other (LIC Group Gratuity scheme –
sardar sarovar FD)
7251044.00 17498312
TOTAL 111910829.00 231088312.00
- 52 -
SCHEDULE –9 ADVANCES
Particulars Schedule No. AS ON
31/03/2009
AS ON
31/03/2010
I
II
III
(A)Loan Advances
(B)Term Loan
327275157.35
78662055.80
198765297.72
259390511.90
TOTAL ADVANCES 405937213.15 458155809.62
(A) Secured by tangible assets
(B)Unsecured
396075900.15
9861313.00
446656292.62
11499517.00
(A) Priority Sectors
(B) Others
302447000.00
103490213.15
338589000.00
119566809.62
TOTAL ADVANCES 405937213.15 458155809.62
SCHEDULE –10 FIXED ASSETS
Particulars AS ON
31/03/2009 AS ON
31/03/2010
I Premises
(i) At cost less depreciation as on
31st March for the preceding
(ii)Addition during the year
(iii) Depreciation of currents year
11685493.21
000.00
10516944.21
0.00
11685493.21
1168549.00 10516944.21
1051694.00
TOTAL PREMISES (A) 10516944.21 19465250.21
II Other Fixed Articles
(i) At cost less depreciation as on
31st March for the preceding
(ii)Addition during the year
(iii) Depreciation of currents year
404284.46
320824.00
3675823.46
1744809.00
4366108.46
690285.00 5420632.46
834448.00
TOTAL PREMISES (B)
3675823.46 4586184.46
TOTAL
14192767.67 14051434.67
- 53 -
SCHEDULE –11 OTHER ASSETS
PARTICULARS AS ON
31/03/2009
AS ON
31/03/2010
Interest accrued 4280578.00 6185971.00
Stationary and stamps 275810.00 1994525.00
Others 4178683.00 4940353.00
TOTAL 8735071.00 11325776.00
SCHEDULE –12 INTEREST EARNED
PARTICULARS AS ON
31/03/2009
AS ON
31/03/2010
Interest/discount on advances/bills 55156376.61 59617383.76
Income on investment 14111965.73 17085349.47
TOTAL INTEREST EARNED 69768342.34 76702733.23
SCHEDULE –13 OTHER INCOME
PARTICULARS AS ON
31/03/2009
AS ON
31/03/2010
Commission 1342811.37 888905.89
Dividend 2969454.35 2792617.77
Miscellaneous income 1470146.35 1191560.06
TOTAL OTHER INCOME 5782412.05 4873083.72
SCHEDULE –14 INTEREST EXPENDED
PARTICULARS AS ON
31/03/2009
AS ON
31/03/2010
Interest on deposits 37482199.07 345297333.00
Interest on Borrowing 248703.00 18225.00
TOTAL INTEREST EXPENDED 37730902.07 45315558.00
- 54 -
SCHEDULE –15 OPERATING EXPENCES
PARTICULARS AS ON
31/03/2009
AS ON
31/03/2010
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Payment to & provision for
employees
Rent, Taxes & lighting
Printing stationary
Advertisement & publicity
Depreciation on bank‟s property
Director‟s fees and expenses
Audit fee
Law Charges
Postage, telegrams, telephone etc.
Repair & maintenance
Insurance
Other expenditures
Loss of chital branch
14553251.45
454207.20
223736.39
177450.00
1858834.00
0.00
130495.00
172589.00
150149.85
80048.00
789269.00
3328370.04
2435825.00
11454788.19
447205.20
0.00
316834.00
1886142.00
0.00
136000.00
197094.00
143251.00
109931.00
920960.08
5536710.54
0.00
TOTAL OPERATING EXPENCES 24354224.93 21148916.01
- 55 -
- 56 -
INTRODUCTION
Research always begins with a question or a problem, Its purpose to find answers to
question through the application of systematic and scientific method, Thus, research is
systematic approach towards purposeful investigation. This need formulating a hypothesis,
collection of data on relevant variable, analyzing and interpreting the results &
researching conclusions either in the form of a solution or certain generalizations.
Research is an academic activity and a systematized effort to gain new knowledge
DEFINE THE PROBLEM
Bank has given different types of loans & advances to their customers to provide facilities
& services. Because of illiteracy of peoples in this area it is very difficult to understand
norms & conditions of loan system.
My problem is “to study loans & advances of ANSB LTD”
OBJECTIVES OF THE PROJECT: -
"While selecting the project title 'Loans & Advances' there are following
Objectives”.
To study different types of loans given by the bank.
To study the procedure of loans and advances of the bank.
To study the norms and conditions for sanctioning the loans are studied.
To show total advances of the bank.
Some focus on the recovery procedure of the loans and advances of the bank.
The procedures for giving the loans and advances have been studied.
- 57 -
RATIONALE OF THE STUDY
Any research work that is conducted has some rationale so does my research work also
have. Without the rationale of the study one cannot understand why the given topic of
research has been selected.
1) Financial discipline on the borrower:
As the time of repayment of the loan or its installment is fixed in advances this
system ensures a greater degree of self-discipline on the borrower as compared to
the cash credit system.
2) Time Period:-
When any loan is granted to its member, shareholders, it gives full information
about of its repayment. On not fulfilling the formalities, the account may be
discontinued by the banker.
3) Profitability:-
The system is comparatively simple interest accrues to the bank on the entire
amount lent to a customer.
LIMITATION OF STUDY
It may be made clear that research is there to help in decision making & is not a substitute
of decision making some of the limitations are given below.
Research can provide a number of facts but it does not provide actionable result.
Some problems just cannot be researched. For example. Precise estimate of new
deposits directly attributable to customer.
It cannot provide the answer to any problem but only provide a set of guidelines.
Managers rely more on intuition & judgment rather than on research.
- 58 -
DATA COLLECTON METHOD
Data is required to make a decision in any business situation. The researcher is faced with
one of the most difficult problems of obtaining suitable, accurate adequate data. Utmost
care must be exercised while collecting data because the quality of the research results
depends upon the reliability of the data.
Statistical data can be classified into two categories.
Primary data
Secondary data
PRIMARY DATA:
It is one which is collected by the investigator himself for the purpose of a specific
inquiry or study. Such data is original in character and is generated by surveys
conducted by investigator or research institution.
SECONDARY DATA:
When an investigator uses the data which has already been collected by others,
such data is called secondary data. The secondary data can be obtained from
journals, report, government publications and so on.
My data collection method is secondary data, I used following secondary data.
Five years annual report
Prospectus of Bank
- 59 -
DATA ANALYSIS & INTERPRETATION
TYPES OF LOANS
Banks grant loan for different period‟s short medium & for different purpose. Broadly the
loans granted by banks are classified as follows.
1. Consumption loans
2. Bridge composite loans
3. Medium & long term loans
4. Short term loans
1) Consumption loans:-
Though normally banks provide loans for productive purpose only. But as on exception
loan are also granted on a limited scale to meet the medical needs or the educational
expenses or relating to marriages & other social ceremonies etc. Such loans are called
consumption.
2) Bridge composite loans:-
Bridge loans are granted by bankers or by financial institution themselves & are
automatically repaid out of amount of the term loan or the funds raised in the capital
market. Bridge loans are essentially short term loan, which are granted to industrial
undertaking to meet their urgent & essential needs during the period when formalities for
availing for the term
Loans sanctioned by financial institutions are being fulfilled or necessary step are being
taken to raise the funds from the capital market.
3)Medium & long term loans;-medium:
Medium or long loans are usually called term loans. These loans are granted for more then
a year & are meant for purchase of capital assets for the establishment of new units& for
loan together with specialized financial institution like industrial financial corporation etc.
Such loan constitute a part of the project finance which industrial from different secured
by the tangible assets like land, building, plant & machinery etc..
- 60 -
4) Short term loans;-
Short-term loan are granted to meet the working capital needs of the borrowers. These
loans are granted against the security of tangible assets mainly the immovable assets, &
good & commodities, etc.
TYPES OF ADVANCES:-
Clean loans
Letter of credit
Overdrafts
Cash credit
Discounting of bills
Clean loans:-
According to this type of advance, the banker makes on advance to the customer against
his personal security & security of one or more persons. The amount is credited to the
customer`s amount immediately after sanction & is repayable in lump sum or in
installments. The period of loan ranges from one year to ten-twelve years accordingly. It
has been classified as:
Short term
Medium term
Long term loans
Short-term loan will be for one year & medium term loan will be from one year to six
years & when advance beyond six or seven yearly. It may be long-term loan or simply
called term loan. The interest charge on these loans will be slightly higher compared to
cash credit or overdrafts. These are clean loans & interest is charged on the entire amount
& their operation is very simple, the interest is compounded every quarterly or half yearly
rests.
- 61 -
Letter of credit: -
A letter of credit is an undertaking given by an issue banker to pay the specified sum
of money to the person of drawl bank, which pays money to the holder of L/C. This is
a sort of loan facility extended by a banking institution to its customers. This is
normally given to customers who will be on travel & to business people.
Overdrafts
The amount so drawn carries on agreed rate of interest. This is type of loan sanctioned to a
certain limit against a current account. Overdraft means over drawing the current account
up to the sanctioned limit. This is a temporary financial agreement made for a short period
by the end of financial year. The borrower should bring back the current account to credit
balance. the interest is paid only on the utilized portion of the sanctioned limit, this is
disadvantages to the banker hence he charge one percent on unutilized portion of the
sanctioned limit and also incorporates the minimum interest clause which is explained
under cash credit overdraft is sanctioned against personal securities of the borrower.
Cash credits:-
This is very popular type of advances made by commercial banks. This is sanctioned
against the hypothecation or pledge of the goods like agriculture or industrial product or
against the guarantee of the individuals or obligates. As per this financial management,
some amount of loan sanctioned to the borrower and he can utilize it whenever he wants.
It is not obligatory to draw the entire amount in the lump. The cheque is issued against the
account as and when required by the loans up to the sanctioned limit. Similarly, the
surplus in the hands of loans can be credited to the accounts.
This cash credit account is a running account, which can be operated according to the will
of the borrower. The debit balance in the account should not exceed the sanctioned limit.
The interest will be charged quarterly or half yearly on the account actually used at an
agreed rate. When the cash credit is a sanctioned, the banker should keep the amount at the
credit of the borrower irrespective of that he utilizes the amount or not.
Therefore cash credit is a popular loan account sanctioned by the commercial banks they
are also called „revolving goods loan‟ account as the arrangement is made against the
stock and it is for a longer period and current account need not be opened in these case.
- 62 -
Discounting bills:-
This is type of financial accommodation made between the banker and the customer.
According to this is to the banker discounts the trade bills of exchange of a shorter period
say 60 gays to 90 days and credit the customer‟s account with the proceeds. Supposing a
customer has a bill of exchange accepted by the person payable to him for Rs.2000 and the
term of the bill being 3 months. The customer on receipt of B/R approaches his banker and
gets the proceeds at discounted value. If a banker discounts @ 20% p.a. the banker pays
Rs.1900 discount amount being Rs. 100 the amount of Rs. 2000 shall be paid on maturity
of the bill either by acceptor or when discounted by him by the customer who has
discounted the bill.
SECURED & UNSECURED ADVANCES:-
The bank advances are classified in to two categories.
Secured loans
Unsecured loan
Secured loans:-
Secured loans are those, which have a full banking of some security or the other. This is
the first classification of advances and reads loans considered good in respect of which the
banks is fully secured, loan on mortgage, loan against deposit of little deeds etc. are
considered to be secured loans.
Unsecured loans:-
Advance against guarantees may also be considered as lean loan. Unsecured loans are
those not covered by any security of the debtor himself and security of one or more
persons, even the bills discounted are considered to be a clean loan.
- 63 -
TYPE OF LOAN
1. Mortgage loan
2. Vehicle loan
3. Cash credit loan
4. Overdraft against security
5. Machinery loan
6. Loan against F.D.
7. Gold loan against property
8. Self employed loan
9. NSC/KVP loan
10. Term loan
11. Staff loan
12. Consumer loan
Mortgage loan:-
This loan is based on installment. The first, mortgage by way of deposits of immovable
properties and hypothecations of movable properties. After the creation of mortgage,
ANSB bank gives a loan on this type of mortgage. Bank sanctions loan up to 65% of value
of the mortgaged property. Whenever any installment is not paid regularly, bank sends
notice for recovery of the dues. This loan is repayable within 3 years.
Particulars Margin Interest rate Rebate
Mortgage 35% 14% 1%
- 64 -
2) Vehicle loan:-
The ANSB bank provides loan for purchasing various types of vehicle.
Generally loan of vehicle is completed within the 3 years and sometimes upto 5 years in
the case of four wheelers, fixed with monthly installment.
particular Interest rate Margin Rebate
vehicle loan 13% 25% 1%
In vehicle loan, for four-wheeler, margin to be provided is 20%
- 65 -
Security:-
Bank provides loan against equitable mortgages & against hypothecation.
Documents:-
All basic documents
Two photos of loan applicant
A Xerox copy of rationing card, light bill, telephone bill, driving license, housing
tax bill.
A copy of estimation cost of vehicle of authorized dealer.
Income proof & evidence
Two guarantors for loan applicant.
A photocopy of the property files with city survey index copy.
4) Cash credit loan:-
Such type of loan is provided by the ANSB on the three main bases.
Loan against stock and book debts.
Loan against property.
Loan against personal guarantees.
Under these cash credit , bank provides loan by taking personal guarantee, property &
stock under such method rate of interest is 13% for up to 5 laces & 12% for above 5 laces.
particular margin Interest rate Rebate
Cash credit loan - Up to 5 lacks 13%
Above 5lacks 12%
-
Documents:-
All basic documents.
Firm`s last three years balance sheet & income tax return copy.
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Evidence of other income of proprietor or partner.
Director's signature.
To include certificate of company registration and articles of association if
applicant is private limited company.
Statement of last six month of firm`s account in the bank or other banks.
5) Overdraft against security
When customer requires temporary accommodation, he may be allowed to overdraw his
current account usually against collateral securities & pay interest on the amount actually
used by him the bank provides those facilities because it helps in any contingency
situation & to solve other problem which related to short term capital.
particular margin Interest rate Rebate
overdraft - Below 2 lacks 13%
Above 5lacks 14%
-
6) Machinery loan:-
Generally loan for purchasing of machinery is provided to different industry to expand
their business. The ANSB provides loan or purchasing various types of machinery.
Banks provides loan schemes according to machinery.
particular margin Interest rate Rebate
machinery loan 20% to 30% Up to 2 lacks 13%
Above 2 lacks 14%
1%
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Documents:-
All basic documents.
Evidence of other income of proprietor or partner
Statement of last six month of firm‟s account in the bank or other banks.
Director's signature
Machinery list and Xerox of bills
Invoice of purchasing new machinery
Firm‟s last three years balance sheet and income tax return copy.
7) Loan against fixed deposit:-
The ANSB gives the loan against its own fixed deposits. The interest rate on those loan
are 2% more than the interest which is payable on such fixed deposits. But if the loan is
needed for third party,(i.e.) the party does not have a ix deposit on his name and want loan
so the rate of interest rate on those person are 2.5% over and above the interest rate on
such fixed deposit. The bank gives up to 85% loan on the face value of fixed deposit. The
time period of such loan is equal to the maturity date of the fixed deposit or earlier.
particular margin Interest rate Rebate
Loan against F.D. 15% 2% over deposit receipt -
Documents:-
All basic documents.
Fixed deposit certificate of borrower.
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8) GOLD LOAN:
With the Gold Loan of ANSB Ltd., you can get an instant loan against your gold jewelry
and ornament. The procedure is simple, documentation is a minimal and approval is quick.
Auction.
Feature & Benefits:
Borrow up to Rs. 50000 & up to 80% of the value of any purpose depending on
your requirements.
Flexible repayment options, ranging from 26 months.
Get highest loan amount on your gold jewelry
Repay the loan at maturity.
One of the lowest interest rates is 13.5%.
Hassle free & quick loan processing.
1-hour loan approval.
If customers are not able to repay the loan at maturity, auction of gold by bank at
market value and amount deposited against loan.
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9) Self employed loan:-
The loan is for the various self employed people like doctors, engineers, and chartered
accountants and advocates etc. This is provided for starting their practices as well as
expansion of their business. The bank provides loan up to 50% to 70% and total
installments within 24 to 36 months inclusive of interest and 1% rebate is given to it.
Loans from Rs. 2 lacks onwards depending on your needs.
Borrow up to 60% of market value of the property.
Flexibility to choose between an EMI based loan or and Overdraft. We also offer
you overdraft against your self-occupied residential or commercial property and
you save money by paying interest only on the amount utilized.
High tenure loans for case of repayment.
Attractive interest rate.
Simple and speedy processing.
Specially designed products for self-employed.
10) Loan against government security:-
ANSB gives loan against government security such as national saving certificate, kishan
vikas patra etc.
Before making an advance on the security of national saving certificate and kishan vikas
patra, the bank takes an application in the prescribed form from the borrower in whose
name the certificate stand. These certificates is being sent to the concerned post office or
the issuing authority for transfer to the lending bank‟s name and the banker grants the
advance only after marking the certificate with the lien in the name of the bank.
ANSB provides the staff loan in different categories for its staff inclusive of purchase old
or new house at very normal rate of interest. This bank normally give following types of
staff loan.
particular margin Interest rate Rebate
Loan against
government security
25% 13% -
Documents:-
All basic documents
NSC/KVP certificate
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Security:-
Certificate of NSC (national saving certificate)
KVP (kishan vikas patra)
11) Term loan:-
Term loan is loan being provided to business people. ANSB provides different types of
short term and long term loans. It charges 13% up to 2 lacks. For this loan an applicant
should have a minimum two guarantors and mortgage.
particular margin Interest rate Rebate
term loan - Up to 2 lacks 13%
Above 2 lacks 14%
1%
Documents:-
All basic documents.
Xerox of rationing card of proprietor as well as two guarantors.
Light bill/telephone bill, Xerox of applicant as well as two guarantors.
Housing tax bill Xerox of applicant and one photocopy of guarantor.
Evidence of shareholders.
Other documents:-
Income proof for loan applicant as well as two guarantors.
Director‟s signature is required for recommendation
Quotation of purchasing new machinery
Duplicate copy of city survey
Photography of property file is submitted to bank
Last three year firm‟s statement and income tax return copy.
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12) Staff loan:-
ANSB provides the staff loan in different categories for its staff inclusive of purchase old
or new house at very normal rate of interest. This bank normally give following types of
staff loan.
particular margin Interest rate Rebate
Festival advance - 0% -
Staff vehicle loan and
surety loan
- 6% -
Staff housing loan - 7% -
Documents:-
One photocopies of applicant as well as two guarantors the work in the bank.
Submit the application form with salary slip.
Personnel information of applicant as well as two guarantors.
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13) Consumer loan:-
ANSB is providing consumer loan to their customer and general public. This loan is
provided for getting the gas pipeline connection at the home.
particular margin Interest rate Rebate
Consumer Loan 25% 14% 1%
Documents:-
Gujarat gas connection‟s quotation.
Xerox light bill.
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PROCEDURE OF LOAN
PROCEDURE OF LOAN
I. Submission of application
II. Primary assessment
III. Branch head recommendation
IV. Final assessment by various level of bank
V. Loan committee recommendations
VI. Documentations of loan applications
VII. Disbursement of loan
The main step is the submission of the duty filled form or the loan application and
it is the choice customer that which type of application he wants to avail depending
upon the needs.
Ex. in the case of vehicle loan, down payment and the fees also required to be paid.
Now the primary assessment is to be done. Here the financial details of the
application.
Ex. Pan number etc. the income proof is checked with the salary slip, if
attached, P&L a/c, balance sheet & I.T. Return copies. After primary
assessment one come to know about the details of the application, his
genuineness, his repayment capacity and the purpose for loan etc.
The appraisal is moving one step ahead that is to analyse the applicants eligibility
as per the norms provided by considering his gross income after deducting his
liabilities his actual repayment capacity is checked as per norms.
After referring the application from and appraisal branch head put his
recommendation whether to accept the application or not and send it to the head
office.
At Head office the final assessment is to be done and decision is taken to sanction
or reject the application reply is forwarded to the particular branch from where the
application has been received.
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The branches have the power to take the major decision on the sanctioning of the
loan.
After the full completion the disbursement of the loan in the hands of the branch
office.
If the application is accepted then the other formalities are completed.
Ex. The submission of the other necessary documents, payments of the
other charges, payment of the margin money, postdated cheques are also
being taken.
Points to be noted in loan process:-
Bank gives a permission to branch only to give Loan against FD
If the amount up to 5, 00,000 then it is necessary to have signature of executive &
director general manager.
If the amount above 5, 00,000 then it necessary to have signature of executive &
director and General manager.
In mortgage loan up to 1, 00,000 then it is necessary have signature of executive &
director and general manager.
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PROGRESS REPORT
YEAR SHARE
CAPITAL
RESERVED
& OTHER
FUNDS
DEPOSITS ADVANCES WORKING
CAPITAL
PROFIT
1997-98 2305 17535 77625 56871 108728 3208
1998-99 2564 20052 92692 54644 126287 2061
1999-00 2827 20800 110616 63837 146574 2467
2000-01 7183 23768 133294 109346 176431 3700
2001-02 7613 29655 169186 123335 221816 4500
2002-03 9306 33602 187354 126490 245824 5100
2003-04 11558 39499 244918 152623 310658 5511
2004-05 12445 42343 288593 194468 326734 5557
2005-06 14514 53013 307562 221460 387274 5627
2006-07 18549 60864 357863 254922 451969 7966
2007-08 22789 74806 476280 319386 583196 13271
2008-09 28926 79039 536645 405937 671149 13465
2009-10 33557 84661 725311 458156 854511 15111
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13121110987654321
800000
700000
600000
500000
400000
300000
200000
100000
0
Index
DEP
OS
ITS
MAPE 9
MAD 21989
MSD 733561008
Accuracy Measures
Actual
Fits
Variable
Trend Analysis Plot for DEPOSITSQuadratic Trend Model
Yt = 109652 - 15025*t + 4456*t**2
Analysis & Interpretation:
Figure represents an excel scatter plot of the average deposit length over 13 year period in
the excel plot. The trend line has been fitted through the points observe the general upward
trend of the data. We conclude that the actual & fitted data gone throughout in upward
movement.
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13121110987654321
500000
400000
300000
200000
100000
0
Index
AD
VA
NC
ES
_1
MAPE 8
MAD 11287
MSD 186690902
Accuracy Measures
Actual
Fits
Variable
Trend Analysis Plot for ADVANCES_1Quadratic Trend Model
Yt = 66702 - 6708*t + 2790*t**2
Analysis & Interpretation:
Figure represents an excel scatter plot of the average advances length over 13 year period
in the excel plot. The trend line has been fitted through the points observe the general
upward trend of the data. We conclude that the actual & fitted data gone throughout in
upward movement.
- 78 -
13121110987654321
16000
14000
12000
10000
8000
6000
4000
2000
0
Index
PR
OFI
T
MAPE 61
MAD 1001
MSD 1513206
Accuracy Measures
Actual
Fits
Variable
Trend Analysis Plot for PROFITQuadratic Trend Model
Yt = 3207 - 641*t + 123.2*t**2
Analysis & Interpretation:
Figure represents an excel scatter plot of the average profit length over 13 year period in
the excel plot. The trend line has been fitted through the points observe the general
fluctuate regular trend of the data. We conclude that the actual & fitted data gone
throughout in upward movement.
- 79 -
PROGRESS CHART OF DEPOSIT & ADVANCES
Interpretation
Above graph indicates that, in the year of 2008-09 total advances of the bank are
405937 where as deposits 536645. It increases in the year 2009-10 up to 458156&725311
respectively. It represents that year by year in both the term deposits & advances were
continuous raised.
PROFIT STATEMENT
YEAR
PROFIT
1997-98 3208
1998-99 2061
1999-00 2467
2000-01 3700
2001-02 4500
2002-03 5100
2003-04 5511
2004-05 5557
2005-06 5627
2006-07 7966
2007-08 13271
2008-09 13465
2009-10 15111
- 80 -
Interpretation
As per above graph it indicates that banks profit is in first three year continuously fallen.
After 2001-02 to 2005-06 banks profit was stable in nature. Slightly change in profit. It is
said that after 2001-02 to 2009-10 bank‟s profit slope was upward.
On the basis of last five years profit shows that bank‟s performance was comparatively
good in co-operative sector.
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PROGRESS CHART OF SHARE CAPITAL & PROFIT
Interpretation:
Out of this profit, first of all banks raises some funds to strengthen its financial position,
then after the bank gives dividend to their members from the remaining profit. It is not
compulsory for the bank to pay dividend every year. Bank gives regular dividend to their
shareholders.
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FINDINGS &SUGGESTION
It is not cleared that one-person take surety in how many loans application? So
that bank has to make these types of rules. It can be not down in application form.
Bank has to invite each and every loan applicant to take once presence in bank.
Bank has to keep a P.R.O. counter, which gives proper information related with
various loans schemes. So that settlement of loan application can be done easily or
speedily.
It is necessary for bank to change or improve its working procedure for
sanctioning of loans because loan procedure of bank is too tough.
For acceptance of loan application to keep separate "Loan Department" and at
clerk level all the papers of loan can be prepared then after officer of the loan dept.
can scrutinize it and then with recommendation letter of manager credit &
personnel/ C.E.O. (Chief Executive Officer) Sir's. It can be presented in "Loan
Committee". So that loan procedures can be completed speedily or easily and
loans and advances of the bank can be increases.
Bank has tries to take varieties in loan schemes. So that loans and advances of the
bank can be increases.
Bank has to provide loans related to loan applicant's own requirements or
objective.
Acceptance of loan application by bank, it can be inward before it can be access
by recovery dept. It can be only possible when loan dept. and recovery dept. can
be connected.
When to give loans to other bank's customer's then to request to customer's that
they open its current or saving account
Bank gives power to branch manager of sanctioning upto Rs. 25,000/- on N.S.C.
& bank's FD. In this, limit of loan amount does not take and give complete power
of sanction of these types of loan.
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CONCLUSION During, my training I found that Amreli nagrik sahkari bank is reputed in just few year &
still moving ahead on the path of progress. ANSB‟S future is bright on the basis of current
situation of bank.
During, my overall period of study in bank, their staff is very responsive their work. In a
co-operative sector ANSB is one of the most leading bank in district as well as state level
also.
I conclude that bank‟s environment is very good for customer and also has sound, smooth
& efficient management system.
Bank‟s schedule is 12 hours it indicates that bank‟s profitability & sales turnover are in
upward movement.
I also conclude that in technically bank is not providing ATM facility because it is
limitations but co-operative sectors management is not much wide. This area‟s people are
not much aware about the system that how it follows but bank is achieving their
customer‟s reliability.
I wish that a bank is achieving millions of success in future.
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BIBLIOGRAPHY
1)Reference books
Dr. Maheshwari S N, Financial management principle &practices-
tenth edition, Sultan Chand &educational publisher New Delhi.
Kotler Philip, Marketing Management, eleventh edition, Pearson
Education.
Aswthappa.K, Human Resource & Personnel Management, forth
edition, The Mc Graw Hill companies.
2) Banks documents
Document & Broacher of the Bank.
Annual Report of the Bank of last five Year.
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