profile of krishna grameena bank -...

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CHAPTER-II

PROFILE OF KRISHNA GRAMEENA BANK

CHAPTER-II

PROFILE OF KRISHNA GRAMEENA BANK

2.1 Introduction Krishna Grameena Bank is the sixth regional rural bank in Karnataka

State. The Krishna Grameena Bank is a regional rural bank established in

terms of provisions of Regional Rural Banks Act, 1976 and was sponsored by

State Bank of India. The bank started to function on 1st December, 1978 under

the dynamic and able leadership of Shri Ashok Kheni as its first chairman.

Initially, the area of its operation was confined to Gulbarga District only. Later

on it was extended to the neighbouring districts of Bidar and Yadgir also. Now

the bank is operating in Gulbarga, Bidar and Yadgir districts of Karnataka

since 1st December 1978.

“The Central Government has decided to merge the two Regional Rural

Banks (RRB’s) of North Karnataka viz., Krishna Grameena Bank and Pragati

Grameena Bank with headquarters at Bellary and the resultant bank is

christened as Pragati Krishna Grameena Bank (PKGB). The new bank has

come into effect from August 23, 2013 sponsored by Canara Bank. However,

before the merger the KGB was entirely sponsored by the State Bank of India.

The command area of the new bank will be the combined operational area of

the erstwhile two RRBs viz., Bidar, Gulbarga, Yadgir, Raichur, Koppal,

Bellary, Davangere, Chitradurga, Shimoga, Kolar and Chickballapur”.1

The Gulbarga, Bidar and Yadagir these three districts are known for

their backwardness and are also the lead districts of the sponsor bank. The

position of the cooperatives is very weak in Gulbarga and Yadagir districts and

quite strong in Bidar district. “The total area covered by these three districts is

around 21637.471 Sq-kilometers spread over 15 Talukas and 2020 inhabited

villages. The total population in the Bank’s command area is estimated 55.21

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Lakhs according to 2011 census. Gulbarga district is much bigger in size and

also in terms of population compared to Bidar and Yadagir districts. The total

area of Gulbarga district is 10954.97 Sq-Km, Bidar district 5448 Sq-Km, and

Yadgir district is 5234.50 Sq-km. The number of villages inhabited is 918 in

Gulbarga, 621 villages in Bidar and 481 villages are in Yadgir district. While

population of Gulbarga district, is 25.64 lakhs, it is 17 lakhs in Bidar and it is

12.57 lakhs in Yadgir district according to 2011 census. There are 7 talukas in

Gulbarga, 5 talukas in Bidar and 3 talukas in Yadgir district”.2

The Krishna Grameena Bank selected these three districts on account of

their extreme backwardness and existence of large credit gaps. About 82% of

total population in its command area still resides in villages. At the time of

opening this bank, these districts were covered by DPAP and IRDP. Thought it

is basically a dry area, hopes of people regarding minor irrigation development

has been raised by the Mullamari Project, Upper Krishna Project and Amarja

Project in Gulbarga districts and Karanja project in Bidar district.

The bank is operating in Gulbarga, Bidar and Yadgir districts of

Karnataka State since 01.12.1978. The present branch network is 149 of which

114 branches are functioning in rural areas, catering to the needs of farming

community, rural artisans and other rural mass.

The main vision of KGB is to be the preferred banking institution of the

people of this area, committed to improve the living standards of the mass so as

to achieve inclusive growth with sustained viability.

Since inception, the bank is striving hard to achieve its set objectives in

its area of operation. The bank has now extended its coverage to all the urban

and semi-urban centres in the three districts.

The main Head Office of KGB is located in Gulbarga. The Head Office

building has been equipped with centralized air conditioning, computerized

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functioning, solar lighting, modern gadgets and a sprawling well maintained

garden. The Head Office premises is regarded as one of the best corporate

office not only in Gulbarga City but also in the entire Hyderabad-Karnataka

Area. The bank enjoys the popularity as the peoples’ bank in this area.

2.2 Branch Expansion of Bank

The branch expansion policy of KGB aims at opening the branches at

the unbanked centers predominated by the target group of population

comprising mainly the small and marginal farmers. While selecting a centre

for opening the branch, first of all survey of that area was conducted and the

report submitted through NABARD to RBI for getting license. The factors that

are taken into account at the time of opening the branch include the extent of

credit needs met by the existing institutions, degree of credit gaps and number

of target groups of population. Potentiality of bankable schemes is also given

weightage. The major difficulty in opening a branch is the non-availability of

good premises to house the branch. The other difficulties are residential

accommodation to the staff and conveyance due to inadequate infrastructure.

There is also competition from the offices of commercial banks and

cooperatives in certain pockets. Despite these constraints, KGB is striving hard

to fulfill its commitment of providing banking services at the door-steps of the

target group of rural population. A branch covers approximately a cluster of

10-12 villages including thandas and other nearby hamlets. The usual practice

of bank is to conduct survey of nearby villages and collect information as

regards the population, number of households, major crops grown, number of

small and marginal farmers and agricultural labourers, electricity supply and

conveyance facility service provided by other agencies and above all

potentiality of bankable schemes immediately after the branch is opened.

Initially, after the process of survey is over, a branch adopts four to five

villages for a year and concentrates its activity in those villages only. In

subsequent years, it covers the remaining villages. Since officials of the bank

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live in the villages, they mingle with people and keep close rapport with them.

Mass meetings are conducted at the village level preferably during evening

hours and the various schemes of deposits and advances are explained to the

villagers. Simplicity and minimum documentation have been the peculiar

features of the bank in granting loans and advances. All these factors have

contributed a lot to the popularity of the bank among the rural masses. KGB

has been building its image as a “small man’s bank”. The branch expansion

policy of the bank is relevant to its objectives of reducing the existent credit

gap and to inculcate the habit of thrift among rural masses.

Table-2.1: Branch Network of Krishna Grameena Bank

Category of branches

Gulbarga District

Yadgir District

Bidar District

Total

Urban 13 2 6 21

Semi-urban 6 4 4 14

Rural 53 27 34 114

Total 72 33 44 149 Source: Annual Report of KGB, 2011-12

The bank was started to function with only one branch in 1978. At the

end of March 2012, the number of branches opened reached to 149.

It is evident from the above table that the bank has 149 branches

covering the entire three districts. Of these 114 are rural branches, 14 semi-

urban and 21 urban branches. District wise particular shows that 72 branches

are in Gulbarga district, 33 in yadgir district and 44 in Bidar district. The main

head office of the bank is situated in Gulbarga.

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2.3 Organizational Structure of Bank

The Bank’s Head Office is located at Kushnoor Road, Gulbarga in its

own building with spacious accommodation for all administrative departments,

board room, meeting hall, computer lab and above all, customer’s lounge. The

building is centrally air conditioned. The bank is headed by a Chairman, a

TEG Scale-VI Office on deputation from State Bank of India. The General

Manager is also on deputation from State Bank of India and is of the rank of

Assistant General Manager (AGM). The Manager (Audit & Vigilance) has

responsibility of audit and vigilance of all branches/ area offices and various

departments at the head office.

The other departments at Head Office headed by a manager are as

under:

1. Personnel Department

2. Credit Management Department

3. Asset Management Department

4. Funds Management Department

5. General Banking Department

6. Computer Cell/ Information Technology Department

7. Computerization of head office, area office and branch offices.

Figure-2.1: Organization Chart

27

2.4 Functions of various Departments

For the purpose of proper administration, the entire bank is divided into

five departments. They are:

2.4.1 Personnel Management Department

The human asset is of paramount importance in any organization. This

department has primary responsibility of recruitment, development and

enrichment of human sources at Krishna Grameena Bank. The greatest

challenge has been to change and orient the mindset of staff to cater to the

expectations of its stakeholders and customers.

2.4.2 Credit Management Department

This department is responsible primarily for processing and sanction of

loan proposal, speedy disposal of sanctioned loans, receipt and scrutiny of loan

documents, availing refinance from NABARD/ SBI, coverage of crop

insurance, release of premium, claims, promotion of SHGs, etc.

2.4.3 Assets Management Department

This department is primarily responsible for managing the assets, both

performing and non-performing, in the bank through following functions.

Monitoring and review of NPAs in quarterly and monthly meetings, to

organize “Krishna Samipya” borrower meeting to ensure better recovery and

ensuring the provisions to be made for loss making assets.

2.4.4 Funds Management Department

This department is responsible for managing all activities related to

funds management including cash management and asset liability management

(ALM) at the bank level. This department undertakes the following major

functions.

To plan and implement the funds management policies as per the

guidelines and norms prescribed by RBI, NABARD and SBI.

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To facilitate transfer of funds between sponsor bank/ NABARD and

HO, HO & branches or among the branches through cash, cheque and

demand draft.

To monitor and supervise Statutory Liquidity Ratio, Cash Reserve

Ratio, etc.

To ensure the compilation of weekly returns of funds management status

from BOS to AOS to HO.

To avail the eligible refinance from NABARD and sponsor bank and

also to arrange funds for meeting repayment obligation.

2.4.5 General Banking Department

The general banking department is responsible for planning and

development function which include preparation of annual business plans,

development action plans, memorandum of understanding, submission of

statutory returns to RBI and NABARD, designing new products/ services and

Computerization of head office, area office and branch offices.

2.5 Share Capital of KGB

The authorized share capital of Bank is Rs.500 Lakhs and the issued and

paid up capital of Rs.100 Lakhs contributed by the three shareholders viz.,

Government of India (50%), sponsor bank State Bank of India (35%) and

Government of Karnataka (15%).

During the year 1997-98, the bank was taken-up for restructuring and a

sum total of Rs.2518.00 Lakhs was sanctioned to cleanse the balance sheet.

Accordingly, an aggregate sum of Rs.1875.77 Lakhs has been received from all

the three shareholders proportionately in two trenches. The balance amount, in

spite of bank’s best efforts is not released till date. As on 31.03.2012, the

position of share capital deposit was as under.

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Table-2.2: Contribution of Capital

Rs. in Lakh

Sl. No. Name of the shareholder Amount released (Rs.)

1. Government of India (50%) 937.88

2. Government of Karnataka (15%) 281.37

3. State Bank of India (35%) 656.52

Total 1875.77 Source: Annual Report of KGB 2011-12

Figure-2.2: Contribution of Capital

Contribution of Capital (Rs. In Lakhs)

State Bank of India (35%), 656.52

Government of Karnataka (15%),

281.37

Government of India (50%), 937.88

2.6 Schemes of Krishna Grameena Bank

Krishna Grameena Bank has introduced various schemes and facilities

under different brand names to the customers. They are

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2.6.1 Krishna Krishi Card (KKC) Scheme

The Krishna Grameena Bank has introduced a new scheme of Kisan

Credit Card under brand name Krishna Krishi Card. During the year, 2011-12

the Bank has disbursed an amount of Rs.46997.32 lakhs to farmers and the

bank has issued New KKC Cards to 15970 farmers. The total number of KKCs

issued by the bank has shot up to 214957.

All eligible borrowers have been issued with the credit cards and

personal accident insurance cover has been provided to all eligible 18,890 card

holders (i.e., below the stipulated age of 70 years) under Personal Accident

Insurance Scheme (PAIS). The share of premium borne by the bank is

Rs.20.65 lakhs as against Rs.10.32 lakhs contributed by the borrowers.

Table-2.3: Krishna Krishi Card Scheme

Year No. of cards issued Amount disbursed

(Rs. in Lakhs)

2005-06 17900 3389.30

2006-07 12296 2880.00

2007-08 6514 36115.00

2008-09 25926 34245.46

2009-10 24505 33072.85

2010-11 11986 36581.40

2011-12 15970 46997.32

Source: Compiled from Annual Reports of KGB from 2005-06 to 2011-12

The above table depicts that the number of Krishna Krishi Cards issued

to farmers. The number of cards issued to farmers has decreased from 17900

in 2005-06 to 15970 in 2011-12. But the amount sanctioned and disbursed to

farmers shows fluctuating trend. It has increased from Rs.3389.30 lakhs in

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2005-06 to Rs.46997.32 lakhs in 2011-12. The above data is shown with the

help of figure 2.3.

Figure-2.3: Krishna Krishi Card Scheme

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12Year

No. of cards issued Amount disbursed (Rs. in Lakhs)

2.6.2 Rashtriya Krishi Bima Yojana (RKBY)

The bank is actively implementing the Crop Insurance (RKBY) Scheme

in letter and spirit. The details of premium paid and insurance claim settled

during the year 2011-12 are as under:

Table-2.4: Details of premium paid and insurance

Rs. in Lakhs

Sl. No. Particulars Amount

1. Total premium 830.24

2. Amount insured 26781.58.

3. Claims settled for the year 2010 (Khariff crop) 371.44

Source: Annual Report of KGB 2011-12.

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2.6.3 Self Help Groups (SHGs)

Micro finance is playing a vital role in the development of financial

position of rural people especially women. In order to reach the unreached in

rural area the bank has given thrust for promotion and credit linkage of SHGs.

The bank has been in the forefront in financing of self-help groups in Gulbarga,

Bidar and Yadgir districts. The bank has bagged third prize among RRBs in

the state under SHG bank linkage programme for the year 2006-07, instituted

by NABARD. The financial assistance given by KGB to SHG is shown in the

following table.

Table-2.5: No. of SHGs and Amount Sanctioned

Year No. of SHGs Amount sanctioned

(Rs. in Lakhs)

2005-06 10565 3751.15

2006-07 11974 4203.55

2007-08 14354 5536.55

2008-09 17138 6930.18

2009-10 18495 7890.11

2010-11 19779 8677.52

2011-12 21037 9749.58


It is very clear from the table 2.5 that the bank is providing adequate

financial assistance to the SHGs. The amount of financial assistance given to

SHGs is increasing every year. It was Rs.3751.15 lakhs in 2005-06 increased

to Rs.9749.58 lakhs in 2011-12. Further it shows that the number of self-help

groups is increasing every year. It increased from 10565 in 2005-06 to 21037

in 2011-12. There are 10472 SHGs increased in a span of seven years. It

shows the prominence towards development of SHGs. Though SHGs may be

formed by both men and women but in real practice almost all SHGs are

formed by women members. It shows the thrust of women for financial

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independence and freedom. In order to come out of the clutches of men in

terms of finance, these SHGs are providing platform. The above information is

shown with the help of figure 2.4.

Figure-2.4: No. of SHGs and Amount Sanctioned

10565

3751.15

11974

4203.55

14354

5536.55

17138

6930.18

18495

7890.11

19779

8677.52

21037

9749.58

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

No. of SHGs Amount sanctioned (Rs. in Lakhs)

2.6.4 Farmers’ Club

The bank is actively propagating the Farmers’ Club Program with an

objective of development through credit. With a view to involve local people

in the development and to create a new environment in rural areas, the bank has

promoted 47 farmers club during the year taking the total Farmers’ clubs

promoted by the bank to 385. These clubs are conducting various

developmental activities in rural areas like training programs on cultivation of

various crops, pest control measures, soil conservation, water management, lift

irrigation schemes, modern methods in cultivation, vermi-culture, horticulture,

diary farming, sericulture, animal health camps, tree planting, community

development programmes, literacy campaign, etc. The volunteers were

deputed to attend Krishi Mela conducted at Dharwad and Gulbarga to expose

them to latest developments in Agriculture.

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2.6.5 Krishna General Purpose Credit cards (KGCC)

The bank has launched a new scheme called Krishna General Purpose

Credit Card (KGCC) for the benefit of economically, socially downtrodden

people. The scheme envisages easy access to credit up to Rs.25000. The

women customers are being given preferential treatment under the scheme.

The bank has issued 15641 cards as on March 2012 with a financial outlay of

Rs.2860 lakhs.

2.6.6 Financial Inclusion (Zero Balance and No Frills SB Accounts)

The bank has completed the first phase of financial inclusion by opening

more than 253506 “No Frill” accounts in Gulbarga, Yadgir and Bidar districts

as on 31.03.2012. As part of the second phase of financial inclusion, the bank

has issued General Purpose Credit Cards (GPCC) to 15302 beneficiaries

amounting to the tune of Rs.2813 lakhs.

2.6.7 Krishna Institute of Training for Self-Employment and Rural

Development (KITSERD)

Krishna Grameena Bank in close coordination with State Bank of India

(sponsoring bank) has set up jointly Training Institute at Gulbarga for training

unemployed youth to take up self-employment ventures and promote

entrepreneurship. The institute was established on 1st November 1997 for

imparting training to unemployed youths of Gulbarga, Bidar and Yadgir

districts in various trades and vocations. The institute provides free boarding

and lodging facility to the selected trainees. The institute conducts training

programmes in various trades and vacations like TV/ radio servicing, two

wheeler servicing, food processing, running beauty parlour, refrigerator and air

conditioner servicing, etc.

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Table-2.6: No. of youths trained and amount of advances granted

Year Total No. of youths trained

No. of youths started

business

Total amount of advances

(Rs. in Lakhs)

Amount of advances

sanctioned to trainees (Rs. in

lakhs)

Amount sanctioned

(Rs. in Lakhs)

2005-06 5007 2621 52375.12 680 1.29

2006-07 2826 1986 67208.16 500 0.74

2007-08 3310 2769 80521.64 513 0.63

2008-09 2979 3593 95227.46 545 0.57

2009-10 3490 2857 114303.21 568 0.49

2010-11 6990 4104 122475.49 595 0.48

2011-12 2275 1787 129474.04 788 0.60


The above table 2.6 clearly shows that the percentage of total advances

to amount of advances given to trainees is decreasing year by year except

during the year 2011-12. It was 1.29% in 2005-06 and decreased to 0.48%

during the year 2010-11. Though the total number of youths trained is only

2275 but the amount of advances sanctioned to trainees is Rs.788 lakhs in

2011-12. This amount has increased by 193 lakhs compared to previous year

of 2010-11. The table also shows that the youths trained during the year 2005-

06 were 5007 and has decreased to 2275 in 2011-12. Even all the trainees have

not started their own enterprises because of many reasons.

2.6.8 Mahatma Gandhi National Rural Employment Guarantee Scheme

(MGNREGS)

The Government of India has launched National Rural Employment

Guarantee Scheme in the area of operation of the bank and the bank has

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extended its full support to the government by opening saving bank accounts of

the beneficiaries on a large scale and the bank has received appreciation from

the district administration for their excellent cooperation rendered by the

branches.

2.6.9 Non-Fund Based Business

The issue of improving the earnings from non-fund business is

continuously engaging bank’s attention. The branches are permitted to issue

banker’s cheques on Gulbarga, Bidar and Yadgir branches. Thirty six branches

are providing safe deposit locker facilities to customers. Besides the above, all

branches are authorized to discount cheques, drafts, issue bank guarantees and

issue solvency certificates.

2.6.10 Issue of Grameena Pay Order in Collaboration with State Bank of

India

The bank has been issuing demand drafts/ Grameena Pay order

(Multicity Cheques) in collaboration with State Bank of India. This initiative

while increasing the range of service offered by the bank of the clientele helped

the bank to earn handsome fee income. Now the bank has introduced this

facility to 76 branches and will be extended to other branches shortly.

2.6.11 SBI-Life Insurance

In order to augment the income from non-fund based business, the bank

has entered into an agreement with SBI-Life, which is a subsidiary of State

Bank of India and is authorized to extend life insurance protection. During the

year 2011-12, the bank has earned a commission of Rs.22.58 lakhs. The

following table gives the details of SBI Life policies for the last seven years:

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Table-2.7: Details of SBI-Life policies

Rs. in Lakhs

Sl. No.

Particulars 2005-

06 2006-

07 2007-

08 2008-

09 2009-

10 2010-

11 2011-

12

1. No. of policies covered

44999 42307 30656 24410 23734 34000 32250

2. Sum assures 15600 14439 10031 6102 8876 8500 8000

3. Premium collected

341 329 329 288 260 262 252

4. Commission earned

29 24 21 14.41 19.40 26.73 22.58

5. No. of claims (cumulative)

801 955 1113 1273 1363 1423 1503

6. No of claims settled (cumulative)

656 879 1029 1253 1338 1398 1458

Source: Annual Reports of KGB 2005-06 to 2011-12.

The bank assurance business has declined due to lapse of many

Sudarshan Policies and discontinuance of Shakti Policies. Efforts are being

made to revive the lapsed policies.

2.6.12 Swarojgar Credit Cards (SCC) The Bank has sanctioned 2725 SCC Aggregating Credit Limit of Rs.

422 Lakhs during the year 2011-12, as against target of 5000 SCCs.

2.6.13 Award and Recognition to Customers

Kudo’s to Shri Shamarao Patil R/o Garoor and Shri Chitrashekhar

Parshippagaole R/o Tadtegnoor these customers who have made an

outstanding contribution in agriculture productivity. The Government of

Karnataka recognized their work and awarded “Krishi Pandit” for the year

2008-09.

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KGB was awarded for the highest number of SHGs linked by NABARD

for the year 2010-11 and Ratkal branch has bagged the award given by

NABARD in February 2012 for the highest number of SHGs linked during the

year 2010-11.

2.7 Human Resources Development Practices

2.7.1 Training

The bank believes in the philosophy of “learning is a continuous

process”. Bank is deputing the staff to different training centers of SBI/ SBH/

NABARD/ NIRB/ NIRD and RBI. The bank has also conducted in-house

training to RDOs. Now the Bank is fully computerized. It has imparting

computer training to the staff and officers of the bank. The details of training

given to the employees for the last seven years are shown as under:

Table-2.8: Details of Trainings Given to Employees

Sl. No.

Particulars 2005-

06 2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

1. Deputation to various training institutes

129 100 173 144 53 63 31

2. In house training (CBS) -- 105 93 -- 432 460 146

3. Computer Training -- 218 193 460 -- -- --


2.7.2 Recruitment and Promotion

Business of the bank is increasing tremendously year after year, with the

existing staff strength; the bank is facing lot of difficulties in maintaining and

serving the existing customers. In order to overcome these difficulties, the

manpower planning exercise has been done afresh as per the recommendations

of Thorat Committee and recruited 83 clerical staff. In the same manner, steps

are initiated to promote the officers and employees to the higher cadre in

accordance with the approved manpower requirement.

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2.7.3 Industrial Relations

There are three unions in the bank viz., Krishna Grameena Bank

Officers’ Association, Krishna Grameena Bank Employees’ Union and Krishna

Grameena Bank SC/ ST Staff Association. A cordial and harmonious relation

with them is maintained without compromising on discipline of work and

productivity. There were regular discussions with the representatives were

held to sort-out the issues.

2.7.4 Improvement in Ambience of Branches

Location of branches and its ambience will motivate staff to render

better customer service, which in turn, will pay rich dividends in the growth of

business. As many as 10 branches were shifted to better places with more

spacious premises during the year 2011-12. These branches were equipped

with modern facilities. This policy may continue in future also.

2.7.5 Computerization

As per the directions received from the State Bank of India, the sponsor

bank, CBS Software Bank 2, which is being used at SBI branches, is rolled out

in all branches of Krishna Grameena Bank. The whole process of migration to

CBS was completed by 30.09.2009. Core banking implementation team

consisting of six members has been formed to implement the project in the

bank.

2.7.6 Krishna Grameena Bank’s Website

This is the era of information technology. In order to provide detailed

information regularly to the public, the bank has created its own website on

01.12.2006. The address of the bank’s website is

www.krishnagrameenabank.com. The website provides the brief particulars of

the bank, various deposit schemes, rate of interest on deposits and loans and

advances. The contact addresses and phone numbers of all the branches, area

offices and head office, functionaries are also available on the bank’s website.

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2.7.7 Corporate Governance

The bank is committed to follow the best practices in the area of

Corporate Governance. The bank believes that the proper corporate

governance facilitates will guarantees effective management and promotion/

control of business activities.

During the year 2011-12, 7 Board Meetings and 3 Audit Committee

meetings were held. Valuable services have been rendered by the Directors of

the Board.

2.7.8 Joint Liability Groups (JLGs)

The bank has introduced a new product for financing Joint Liability

Groups. It is a unique scheme of reaching hither to unreached category of rural

people viz., landless labourers, tenant farmers who remained uncovered by

formal financial institutions. During the year 2011-12, Bank has assisted 226

JLGs in Gulbarga, Yadgir and Bidar Districts.

2.7.9 Solar Lighting System

In villages where the power supply is unreliable, solar home lighting

system has been considered as a substitute and most reliable source of power

supply. The Bank has financed 140 farmers amounting to Rs.28.00 lakhs

during the year 2011-12 for installing solar home lighting system.

2.8 Products and Services of Krishna Grameena Bank

The KGB accepts various types of deposits and provides services to

customers other than the current account, savings account and fixed deposits

account.

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Deposit products3

2.8.1 Krishna Super Saver term deposit:

Krishna Super Saver term deposit has been introduced with effect from

01.06.2006. The salient features of the scheme are as under:

1. Name of Deposit Scheme

Krishna Super saver term deposit

2. Scheme introduced w.e.f.

01.06.2006

3. Period of deposit Min. 6 years – max. 10 years

4. Operation of the scheme up to

Till further instruction

5. Minimum deposit account

Rs.25000

6. Type of account Term deposit and SPI term deposit

7. Rate of interest 7.5% pa at quarterly rate

8. Senior citizen and women depositor

0.5% above the rate applicable to other depositor

9. Penalty for premature closure

0.5% below the rate applicable for the period for which deposit has remained with the bank

2.8.2 Krishna Grameena Bank Silver Jubilee Deposit Account

Krishna Grameena Bank Silver Jubilee Deposit account has been

introduced with effect from 09.03.2007. The salient features of the scheme are

as under:

1. Name of Deposit Scheme KGB Silver Jubilee Deposit Account

2. Scheme introduced w.e.f. 09.03.2007

3. Period of deposit Minimum one year to maximum two years

4. Minimum deposit account Rs.25000

5. Type of account Term deposit and special term deposit

6. Rate of interest 9.5% pa


10%

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2.8.3 Krishna Super Saver Term Deposit

Krishna Super Saver Term Deposit has been introduced with effect from

01.06.2006. The salient features of the scheme are as under:

1. Name of Deposit Scheme

Krishna Super Saver Term Deposit

2. Scheme introduced w.e.f.

01.06.2006

3. Operation of the scheme up to

Till further instruction

4. Period of deposit Minimum six years to maximum ten years

5. Minimum deposit account

Rs.25000

6. Type of account Term deposit and special term deposit

7. Rate of interest 7.5% pa at quarterly rest


0.5% above the rate applicable to other depositor

9. Penalty for premature closure

2% below the rate applicable for the period for which deposit has remained with the bank

Nomination

The facility of nomination is available for all deposit accounts in favour

of individuals, unless otherwise specifically given in writing by the

depositors, nomination in deposit accounts is compulsory.

A depositor however has the right to specify different nominations for

different accounts by completing the appropriate forms.

Further, the applicant is at liberty to change the nominee during the

currency of the relationship accounts with the bank through declaration

to that effect in the appropriate form.

43

Loan Products4

2.8.4 Krishna Krishi Card: Crop Loans

Purpose: For raising different types of field crops

Eligibility: All farmers are eligible.

Loan amount: As per scale of finance/ need base for different kinds of crops

Disbursement: Immediately after sanction and documentation

Security Margin: Up to Rs.50, 000 of Loan agreement

Above Rs.50, 000: Equitable/ registered mortgage on landed property

Margin: 10%

Repayment: After harvest and marketing of agriculture produce

Records to be provided:

a) For Loan amount up to Rs. 50,000/-

i) ROR

ii) Holding certificate

iii) No due certificate

iv) Photographs – 3 No.

b) For Loan amount above Rs. 50,000/-

i) ROR

ii) Holding certificate

iii) No due certificate

iv) Photographs

v) Encumbrance certificate – 13 years

vi) Legal opinion

vii) Mortgage deed with Sub-Registrar

2.8.5 Loan against Warehouse Receipts

Purpose Any purpose

Eligibility Farmers having land and stored their produce at State Warehouse or Central Ware house corporation

44

Loan amount 70% of the market value of the agriculture produce stored

Disbursement pattern

Single installment immediately after completion of documents

Security margin Pledge on ware-house receipts

Repayment Within the stipulated date of ware-house corporation

Records to be produced

1. Warehouse receipt – State or Central

2. Pledge note from warehouse corporation

2.8.6 Minor irrigation including lift irrigation

Purpose New well, borewell, SIP set, IP set, DP set, pipeline, sprinkler and drip irrigation, etc.

Eligibility All the farmers owning minimum of 3 acres of land

Loan amount As per NABARD unit cost

Disbursement pattern For development activity in the field, in stages, and purchase of assets as per quotation directly to the dealer.

Security margin 1. Loan up to Rs. 50,000/-

Loan agreement and hypothecation of moveable assets

2. Above Rs.50,000

i) Hypothecation of assets created

ii) Equitable/ registered mortgage of landed property

Margin 10-25% depending on cost of the scheme

Repayment 5 to 10 years depending on the scheme

Records to be produced :

For loan up to Rs.50,000 1. ROR, holding certificate, no due certificate

2. To purchase IP sets, pipeline – quotation

3. For lift irrigation: Water lifting permission from department of Minor irrigation

45

For Loan above Rs.50,000/- 1. ROR, holding certificate, no due certificate.

2. 13 years encumbrance certificate

3. Legal opinion on landed property

4. IP set, pipeline, drip sets, sprinkler sets, SIP set, etc. quotation

5. Passport size photographs – 3 No.

2.8.7 Land Development

Purpose For leveling, bunding and silt application

Eligibility All the farmers owning the landed property

Loan amount Rs. 4,000/- per acre

Disbursement pattern In stages by seeing the progress of work

Security or margin

Loan up to Rs. 50,000 Loan agreement

Loan above Rs. 50,000 Equitable/ registered mortgage on landed property

Margin 10%

Repayment 11 years with one year grace period


For Loan up to Rs.50,000 ROR

Holding certificate

Photographs – 3 No.

No due certificate

For Loans above Rs.50,000 ROR

Holding certificate

13 years EC

Legal opinion on landed property


No due certificate

2.8.8 Farm Mechanization

Purpose To purchase tractor+trailer and agriculture equipments

Eligibility Farmer should own 6-acres of perennial irrigated (12 months) or 15 acres of dry land

Loan amount As per quotation of tractor+trailer+ agriculture

46

implements

Disbursement pattern Directly to the dealer as per quotation enclosed

Security and margin Hypothecation of tractor+trailer+ implements purchased out of bank finance

Equitable/ registered mortgage of landed property offered as a security

Margin 10-15% of project cost

Repayment 18 half-yearly installments with a grace period of 11 months

Records to be provided ROR – 5 years

Holding certificate

No due certificate

13 years encumbrance


Quotation for tractor + trailer + implements


2.8.9 Plantation & Horticulture Crops

Purpose To promote and encourage farmers to grow different kinds of crops in available infrastructure

Eligibility All the farmers having irrigation source are eligible for loan

Loan amount As per NABARD unit cost and infrastructure to be developed for growing of fruit crops

Disbursement Disbursement of loan amount as per the schedule in pattern stages.

Security

Loan amount up to 50,000 Loan agreement and hypothecation of moveable assets

Loan above Rs.50,000 Loan agreement

Hypothecation of moveable assets created

Equitable/ registered mortgage on landed property offered as security

Margin 10-15% of the project cost

Repayment 5-10 years depending upon hypothecation of fruits crops grown and return on the same


47

For Loan up to Rs.50,000 ROR – 5 years

Holding certificate


No due certificate

For Loan above Rs.50,000 ROR – 5 years

Holding certificate

13 years EC



No due certificate

2.8.10 Dairy Development Commercial

Purpose For rearing of milching animals as an allied activity to agriculture. It supplements the agriculture income. It will provide full employment opportunity to family members and labours.

Eligibility Farmers having irrigated land to grow green grass and dry fodder required to feed the animals

Loan amount As per NABARD unit cost to purchase CB cows, graded she buffalos, shed construction, concentrated feed for one month, veterinary aid etc.

Disbursement pattern Disbursement of loan amounts as per schedule for construction of shed, equipment, animals and concentrate feed.

Security + Margin

Loan up to Rs.50,000 1. Hypothecation of animals and its offspring created out of bank finance.

2. Loan agreement

Loan above Rs.50,000 1. Hypothecation of animals and its offspring created out of bank finance.

2. Equitable/ registered mortgage of landed property offered as a security to the loan amount

Repayment 60 equated monthly installments with 3-months grace period

Records to be produced:

For Loan up to Rs.50,000 ROR – 5 years

48

49

Holding certificate


No due certificate from VSSN and other banks

For Loan above Rs.50,000 ROR – 5 years

Holding certificate

13 years EC



No due certificate

2.8.11 Gold Loan

Purpose For any purpose i.e., personal needs

Eligibility Existing customer of the branch

Loan amount Rs.450/- per gram

Disbursement pattern Immediately after completion of sanction and documentation

Security+Margin Pledge on gold ornament

Repayment Within 12 months from the date of availment

Records to be provided Certificate from gold appraiser and demand promissory note

2.8.12 Education Loan

Purpose Financial assistance to meritorious students for pursuing higher education in India and abroad.

Eligibility Professional courses like engineering, medical, agriculture, veterinary, dental, medicine courses conducted by IIM, IIT, etc.

Studies abroad Job oriented/ professional/ technical courses offered by reputed universities

Loan amount Need based finance subjects to repaying capacity of the parents/ students

Up to Rs.7.50 lakhs – studies in India – Maximum

Rs. 15.00 lakhs – studies abroad – Maximum

Disbursement Disbursement of loan in stages directly to the institutions, vendors of books, equipments, etc. by means of DD/ cheques

Security & margin

Upto Rs. 4.00 lakhs No security

Above Rs.4.00 lakhs Collateral security equal to 100% of the loan amount

Margin

Studies in India 5%

Studies abroad 10%

Rate of interest 12% pa

Repayment Course period+1 year or 6 months after getting the job, whichever is earlier

Repayment in 5-7 years after commencement of repayment

Records to be provided Marks sheet of last qualifying examination

Documents evidencing the duration of course and commencement

Proof of admission to the course


Copies of foreign exchange, permit, etc.

2.8.13 Consumer durables Loans

Purpose To purchase home need items like TV, computer, refrigerator, etc.

Eligibility Salaried persons/ persons having monthly income

Loan amount Maximum Rs.25,000 for purchase of consumer durables

Disbursement pattern As per quotation directly to the dealer

Security+margin Hypothecation of consumer durables

Margin 15-25%

Repayment 36 equated monthly installments

Records to be provided Quotation

Salary certificate

Salary undertaking from drawing officer

2.8.14 Loan for Self employment and professionals

Purpose To undertake gainful self employment

Eligibility Persons undergone short duration training programmes and professionals like doctors, engineers, etc.

Loan amount Need based or cost of the project to be undertaken

50

Disbursement pattern

i) Investment credit Directly to the dealer/ suppliers as per quotation

ii) Working capital Directly to the borrower to carry out the business

Security margin

Loan up to Rs.25,000 Hypothecation of assets created

Above 25,000 up to Rs.50,000

Hypothecation of assets + third party guarantee

Above Rs.50,000 Equitable/ registered mortgage of immovable property worth equal to the loan amount

Margin 10-15%

Repayment Monthly installments

Records to be provided Quotation for assets purchase out of bank finance

Legal opinion on immovable property offered as security

2.8.15 Insurance products

Krishna Grameena Bank is a Corporate agent of SBI Life Insurance Company Ltd., and providing following insurance products to its customers.

i) Super Suraksha Group Insurance Scheme

ii) Sudarshan, Endowment Policy

2.9 Achievement under Priority Sector

The Reserve Bank of India has recently issued instructions to RRBs to

exclude the amount of refinance drawn from Sponsor Bank while calculating

achievement under priority sector (the sponsor bank would show the amount of

refinance granted to RRBs under priority sector). By reckoning the above

factor, achievement under priority sector during the year 2011-12 is as under:

51

Table-2.9: Details of Advances

Amount in lakhs

Sl. No.

Particulars Aggregate advances

Priority sector

advances

% of priority sector

1. Advances details 129474.04 119555.08 92.34

2. Amount of SBI refinance 596.00 596.00 0.50

3. Advances net of refinances 128878.04 118959.08 91.84

Source: Annual Report of KGB 2011-12 Thus, even after complying with the new definition, the achievement of

the bank under priority sector works out to be an impressive 91.84%.

2.10 Loans to Weaker Sections under-Government Sponsored Schemes

The following table shows the details of loans outstanding under various

Government sponsored scheme to SC/ ST, SF/ ML/ AL and minorities:

Table-2.10: Loans to Weaker Sections under Government

Sponsored Schemes

Rs. in lakhs

Year Total

outstanding

Out of which loan to SC/ ST

Loan to SF/ MF/ AL

Loans to minorities

Loans under SGSY & other

Govt. sponsored schemes

2005-06 53717.33 3562.00 12685.46 2317.62 2437.58

2006-07 67208.16 3761.73 12989.55 2992.81 2720.38

2007-08 81305.11 3813.90 13661.35 3561.81 2936.81

2008-09 95819.18 10985.50 16402.31 7131.00 2572.35

2009-10 114714.18 12045.00 23876.77 11617.50 2950.43

2010-11 122475.50 16892.00 17481.00 13131.00 3471.30

2011-12 129474.04 18113.00 19944.00 13039.80 3944.33

Source: Compiled from Annual Reports of KGB 2005-06 to 2011-12

52

The above table shows the details of loans outstanding under

government sponsored schemes and to SC/ ST, small farmers (SF), marginal

farmers (MF), agricultural labourers (AL) and minorities. The district

administration of Bidar, Gulbarga and Yadgir have appreciated the efforts of

Krishna Grameena Bank in having a significant share in the disbursement of

loans to the government sponsored schemes and weaker sections of the society.

The bank continues to occupy top slot in implementation of government

sponsored schemes and annual action plan from which it has won the bank

laurels from the district administration of three districts i.e., Bidar, Gulbarga

and Yadgir. RBI, NABARD, Lead Bank and Sponsor Bank, extensive

coverage of SC/ ST and minorities has been made in lending activity.

The above data is shown with the help of figure 2.5.

Figure-2.5: Loans to Weaker Sections under Government Sponsored

Schemes

0

20000

40000

60000

80000

100000

120000

140000

Rs.

in L

akhs

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12Year

Total outstanding Out of which loan to SC/ ST Loan to SF/ MF/ AL Loans to minorities Loans under SGSY & other Govt. sponsored schemes

53

2.11 Interest Derecognized

The details of interest derecognized, recovery made additions during the

year and net outstanding for the last seven years are given in the following

table:

Table-2.11: Interest Derecognized

Rs. in Lakhs

Sl. No.

Particulars 2005-

06 2006-

07 2007-

08 2008-

09 2009-

10 2010-

11 2011-

12

1. Derecognized interest at the beginning of the year

64.30 84.37 120.61 92.55 118.96 109.36 154.09

2. Less reduction during the year

18.82 25.49 72.60 20.10 34.20 32.80 40.60

3. Additions during the year 38.89 61.73 44.54 46.51 24.60 77.53 10.16

4. Derecognized interest at the end of the year

84.37 120.61 92.55 118.96 109.36 154.09 123.65


2.11.1 Provisions

Following table shows the total provisions held by the Bank against

NPAs for the last seven years:

Table-2.12: Details of Provisions

Rs. in lakhs

Sl. No.

Particulars 2005-

06 2006-

07 2007-

08 2008-

09 2009-

10 2010-

11 2011-

12

1. Total provisions held by the bank against NPAs

1342.20 1196.26 783.47 591.72 410.98 601.70 1090.10

2. Provisions made against NPAs during the year

416.46 -- -- -- 198.60 591.46 692.30

Source: Annual Reports of KGB from 2005-06 to 2011-12.

During the year 2011-12 an additional provision of Rs.692.30 lakhs has

been made to take care of the provision requirement as per RBI norms.

54

2.11.2 Details of NPA Movement

Following table shows the details of movement of non-performing

assets as at the end of the last seven years:

Table-2.13: NPA Movement

Rs. in Lakhs

Sl. No.

Particulars 2005-

06 2006-

07 2007-

08 2008-

09 2009-

10 2010-

11 2011-

12

1. NPA at the beginning of the year

1057.16 1426.58 1976.75 1426.35 1810.71 1495.60 1674.32

2. Less recoveries during the year

1123.58 1505.58 2655.25 1420.75 3420.65 582.29 322.73

3 Additions during the year

1493.00 2055.75 2104.85 1805.11 3105.54 761.01 924.15

4. NPAs outstanding at the end of the year

1426.58 1976.75 1426.35 1800.71 1495.60 1674.32 2275.74

5. Net NPA as at the end of the year

-- 658.97 550.33 761.28 719.73 918.52 1061.98


The following strategies were adopted for recovery of NPAs.5

1. Identification of top NPA branches in each area for intensive follow-up

by the Area Managers and adoption of branches by Heads of the

Department of Head Office for follow up.

2. Strengthened the hands of Manager (Assets Management Department)

by posting an additional officer for constant follow-up of NPAs.

3. High Value Advances accounts were personally monitored by the

General Manager and the Chairman.

4. Invoking the provisions of SARFAESI Act wherever applicable for

recovery.

5. Friendly approach by way of Krishna Sameepya (Customer Meet),

which enabled to achieve excellent results.

6. Conducting of Bank Adalats for speedy disposal of compromise

proposals.

7. Adopting of 3F Mantra for recovery.

55

F Follow-up

FF Frequent follow-up

FFF Further frequent follow-up

8. Threat of seizure of assets wherever applicable for recovery.

2.11.3 Recovery of Loans

Due emphasis has been made for timely recovery of loans. Continuous

follow up and supervision of branches particularly where recovery was below

bank’s average was undertaken intensively. Repayment campaigns, repayment

awareness camps and customer meets (Krishna Sameepya) and Bank adalats

etc. were conducted regularly in almost all branches. Friendly and human

approach was adopted in achieving the objective of recovery without undue

pressure on farmers clientele.

There is marginal decrease in recovery percentage of Farm Sector at

90.57% in the year 2011-12 when compared to 94.5% of the previous year

2010-2011. There was improvement in the recovery percentage of non-farm

sector, which was increased to 94.11% in 2011-2012 from 86.45% of the

previous year 2010-2011. The overall recovery percentage was 91.31% when

compared to 91.3% of the previous year. The sector-wise demand, collection

and balance position for the last two years are as under:

Table-2.14: Recovery of Loans

Rs. in Lakhs

30.06.2010 30.06.2011 Sl. No.

Particulars Farm sector

Non-farm sector

Total Farm sector

Non-farm sector

Total

1. Total demand

38862.42 25712.13 64574.55 65376.42 17100.60 82477.02

2. Collection 367225.81 22230.55 58956.36 59214.63 16094.74 75309.37

3. Balance 2136.61 3481.58 5618.19 6161.79 1005.86 7167.65

4. Recovery percentage

94.50 86.45 91.30 90.57 94.11 91.31


56

2.11.4 Write-off Loans

The detail of write-off exercise undertaken by the bank is as under:

Table-2.15: Details of Write-off Loans

In Rs. Lakhs

Sl. No.

Particulars 2005-

06 2006-

07 2007-

08 2008-

09 2009-

10 2010-

11 2011-

12

1. No. of accounts written off

30 301 1912 1104 1062 319 271

2. Amount written off

26.10 69.70 412.79 258.31 294.54 93.89 128.63


During the year 2011-12 the amount written-off was Rs.128.63 lakhs

where 100% provision was available. Intensive recovery campaigns were

conducted to recover written-off amount parked in AUCA and Rs.70.08 lakhs

was recovered during the year 2011-12.

2.12 Transfer Price Mechanism

The bank has adopted a fair transfer price mechanism on funds lent to

and borrowed from head office (internally) as under:

1. Interest rate on funds lent to head office on total monthly average

deposits at 10.5% p.a.

2. Interest rate on funds borrowed from head office on total monthly

average advances at 9.5% p.a.

2.13 Achievement under Memorandum of Understanding (MoU)/

Development Action Plan (DAP)

The bank has entered into a Memorandum of Understanding with

Sponsor Bank in tune with NABARD guidelines for the year 2011-12.

Periodical review of achievement vis-à-vis target was done by sponsor bank

57

and the Bank’s Board. The following table shows the details of the

performance during the year 2011-12:

Table-2.16: Details of Target and achievement

Rs. in Lakhs

Sl. No.

Particulars Target (level) Achievement (levels)

% of achievement

1. Deposits 160800 140119 8.89

2. Advances 153100 129474 5.71

3. Borrowings 45000 21198 47.11

4. Investments 36500 30431 83.37

5. CD ratio 96.00 92.40 3.06

6. Recovery rate 91.00 91.31 0.31

7. Per-employee business 500 499 -01

8. Per branch business 2150 1809 -341

9. Net result (after tax) 2915 1215 -37.56


The bank has made substantial progress under MOU in majority of the

parameters excepting per branch business and per employee business targets.

2.14 Technical Monitoring and Evaluation (TME) Cell

2.14.1 TME (Cell) – Farm Sector

The Technical Monitoring and Evaluation Cell (Farm Sector) of the

bank was set up on 01.01.1987 with a qualified agriculture graduate. The key

personnel of the cell helped the branches in implementation of schemes like,

lift irrigation, setting up of vermicompost units, plantation and horticulture,

farm mechanization, medicinal and aromatic plants, dairy development, stall

fed goat rearing etc.

The TME (Cell) official coordinates the submission of statements to

various agencies on the above schemes and claim interest subvention from GOI

58

and also GOK, the official is providing technical guidance to farmers and staff.

The technical appraisal of the proposals, monitoring of Kisan Credit Card

(KCC) scheme, doubling of agriculture credit, submitting of statements to

various agencies, government sponsored programs, field visits etc. claiming of

refinance from NABARD and sponsor bank (SBI) are also attended to, by the

official.

2.14.2 TME (Cell) – Non-Farm Sector

TME cell for non-farm sector was set up on 01.07.1997. The key

personnel of the cell are guiding the operating staff in technical and economical

appraisal of proposals. The key personnel put up the proposals after satisfying

the economic viability and technical feasibility of proposals for sanction. The

official conducts the visits for pre-sanction inspection of high value loan

proposals.

The cell also monitors the Rastriya Krishi Bima Yojana (RKBY)

Scheme. Consolidation of RKBY statements received from the branches and

submission of consolidated statement to NAIC is being attended by the cell.

2.15 Women Development Cell (WDC) Activities

With an objective to create awareness among the women and to increase

credit flow to them, the bank has set up Women Development Cell (WDC)

headed by a Lady Officer in 1998. The activities of WDC during the year

2011-12 are listed below:

a) Conducted 18 women awareness programs.

b) Book writing training programs to 23 SHGs.

c) Coordination with branches for formation of women SHGs.

d) WDC official has participated in coaching the trainees at various

Forums including KITSERD.

e) The bank celebrated the International Woman’s Day on 08.03.2012 in a

befitting manner at Ratkal Branch.

59

2.16 Interest Rates

The bank has adopted an aggressive approach for deposit mobilization

in all the years. Interest rates on advances were aligned in tune with changes in

the rate of deposits. The interest rate structure on deposits and advances is

furnished below in table-2.17.

Table-2.17: Interest rates on deposits for General Public

Sl. No.

Duration 2005-

06 2006-

07 2007-

08 2008-

09 2009-

10 2010-

11 2011-

12

1. 7 to 14 days 4.50 4.00 4.00 4.00 -- -- --

2. 7 to 180 days -- -- -- -- -- -- 9.25

3. 15 to 45 days 4.50 5.00 5.00 4.50 2.75 5.00 --

4. 46 to 90 days -- 5.50 5.50 5.50 4.00 6.00 --

5. 46 to 179 days 4.75 -- -- -- -- -- --

6. 191 to 120 days -- 5.75 5.75 7.00 -- -- --

7. 121 to 179 days -- 5.75 5.75 7.00 -- 9.50 9.50

8. 180 days to <1 year 5.50 7.00 7.00 7.75 -- -- --

9. 91 days to 180 days -- -- -- 5.25 5.25 6.50 --

10. 1 to <2 years 6.00 8.00 8.00 5.75 6.50 8.75 9.50

11. 1 and above 5 years -- -- -- 9.00 -- -- --

12. 2 years to less than 3 years 6.00 -- -- -- -- -- --

13. 2 years and above to below 5 years

-- -- -- -- 7.00 9.00 --

14. 2 years and above up to 10 years

-- 8.50 8.50 -- -- -- --

15. 3 years to less than 5 years 6.25 -- -- -- 7.00 -- 9.50


-- -- -- -- 7.75 9.00 --

17. 5 years above up to 10 years

6.50 -- -- 8.50 -- -- --


-- -- -- -- 8.00 9.25 9.50

19. 200 days deposit scheme -- -- -- -- -- -- 8.50



22. Krishna Super Saver Scheme (3 to 5 years)

-- -- -- -- -- -- 10.25

23. Krishna Tax Saver Scheme (5 years)

-- -- -- -- -- -- 10.00


60

Table-2.18: Rates of interest on advances at the end of financial year

Sl. No.

Particulars 2005-

06 2006-

07 2007-

08 2008-

09 2009-

10 2010-

11 2011-

12

1 Crop Loans

Up to Rs. 25,000 9.00 -- -- -- -- -- --

Up to Rs. 50,000 -- 7.00 7.00 7.00 7.00 7.00 7.00

Rs.25001 to 50,000 9.00 -- -- -- -- -- --

Rs. 50001 to 200000 11.00 7.00 7.00 7.00 7.00 7.00 7.00

Above Rs.2.00 Lakhs 12.00 7.00 7.00 7.00 7.00 7.00 7.00

Above Rs. 3.00 Lakhs -- 13.00 14.00 14.50 13.50 13.50 15.00

2 Agricultural & Allied Agricultural Term Loans

Up to Rs. 25,000 10.00 11.00 13.00 13.50 12.50 12.50 13.50

Rs.25001 to 50,000 11.00 12.00 13.00 13.50 12.50 12.50 14.00

Rs. 50001 to 200000 12.00 12.00 14.00 14.50 13.50 13.50 14.50

Above Rs. 2.00 Lakhs 12.00 13.00 14.00 14.50 13.50 13.50 15.50

Above Rs. 5.00 Lakhs -- -- -- -- -- -- 16.50

3 GCC/ GTL/ Composite Loans to Rural Artisans, Craftsmen

Up to Rs. 25,000 9.00 12.00 13.00 13.50 12.50 12.50 13.50

Rs.25001 to 50,000 9.00 12.00 13.00 14.50 12.50 12.50 14.00

Rs. 50001 to 200000 11.00 13.00 14.00 14.50 13.50 13.50 14.50

Above Rs. 2.00 Lakhs 12.00 13.00 14.50 15.00 14.00 14.00 15.25

Above Rs. 5.00 Lakhs -- -- -- -- -- -- 16.75

4 GCC/ GTL to other than Rural Artisans, Craftsmen, etc.

Up to Rs. 25,000 11.00 -- -- -- -- -- 14.00

Rs.25001 to 50,000 11.00 -- -- -- -- -- 14.00

Rs. 50001 to 200000 12.00 -- -- -- -- -- 14.50

Above Rs. 2.00 Lakhs 12.00 -- -- -- -- -- 15.00

5 House Building Loans

Up to Rs. 2.00 Lakhs 10.00 10.50 12.75 13.25 12.50 12.50 13.00

Above Rs. 2.00 Lakhs 11.00 11.50 13.00 13.50 13.00 13.00 13.50

6 S.R.T.O. 12.00 13.00 14.50 15.00 14.50 14.50 15.50

61

Sl. No.

Particulars 2005-

06 2006-

07 2007-

08 2008-

09 2009-

10 2010-

11 2011-

12

7 Gold Loans 12.00 14.00 14.50 15.00 14.00 14.00 15.00

8 Warehouse Receipts Loan

Up to Rs. 50,000 9.00 9.00 9.00 8.00 8.00 14.00 --

Above Rs. 50,000 11.00 9.50 9.50 8.00 8.00 14.00 --

9 Clean Demand Loan with check facility

12.00 14.00 14.00 14.50 14.00 14.00 17.00

Clean Demand Loan without check facility

-- -- 14.50 15.50 15.00 15.00 19.00

10 Self Help Groups 10.00 12.00 13.00 13.50 13.00 13.00 13.50

11 Loan against NSC/ KVP/ other securities

12.00 13.00 14.00 14.50 14.00 14.00 16.00

12 Consumer durables 12.00 14.00 15.00 15.50 15.00 15.00 16.00

13 Mortgage Loans -- 14.00 15.00 15.50 15.00 15.00 17.00

14 Car Loans -- -- -- -- 12.50 12.50 14.00

15 Two wheeler loan -- -- -- -- 16.25 16.25 18.00

16 Education Loan -- -- -- -- -- -- --

Up to Rs. 4.00 Lakhs -- -- -- -- -- -- 11.00

Rs. 4.00 to 7.50 Lakhs -- -- -- -- -- -- 15.00

Above Rs. 7.50 Lakhs -- -- -- -- -- -- 14.00


2.17 Bank’s Achievements6

Below is the list of achievements made by the Krishna Grameena Bank

during the year 2011-12:

Second RRB to achieve 100% CBS (1st RRB among SBI sponsored

RRBs and also first RRB in the State).

Bagged prize for cross selling SBI-Life products.

19th successive repayment camp of Dandothi branch conducted by

farmers (borrowers) themselves was held on 01.03.2012. Loan amount

repaid Rs.500 lakhs on the camp day and till the month end Rs.600

lakhs.

62