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A study relating to financial institution for providing different levels of loans like
long-term, mid-term & short-term loans to small scale industry to improve the
production & operation capacity of an industry. KGB provide long term loan to SSI to
improve infrastructural condition in SSI also provide short & mid term loans to meet the
working capital needs to SSI. Most of the study reveal that the study is related to the
extent of credit facilities, trade-loan facilities give to different size group of SSI &
c) To study the financial assistance in the form of subsidies and incentives provided
by KGB.
industries.
e) To assess the utilisation and repayment of loan amount borrowed by the sample
beneficiaries.
f) To summaries the findings and make suitable suggestion in the light of finding of
the study.
METHODOLOGY OF THE STUDY:
This study was conducted for different small scale industrial units at Gulbarga
city. The present study uses the data from both sources as listed below;
i) Primary Data:
The Primary data has been collected through questionnaire & personal interview
The Secondary data was collected from the banks. Annual reports & record
maintained of the small scale development institution, book & some sites on the net.
The present study also not free from certain limitations. The following are the
2. The proprietor owing them are in many cases are illiterate & therefore, not in a
Chapter One: Exclusively deals with introduction to the study, objectives of the study,
statement of problem & scope for the study. Limitation also mentioned.
Chapter Two: Provides detailed profile of the bank and Gulbarga city a brief profile.
Chapter Four: Deals with analysis & interpretations of the data collected, during the
course of survey.
Chapter Five: Provides the findings of the study along with the suggestion.
KGB Brief Introduction:
KGB is established on 01.12.1978 under the RRBS Act 1976, the Bank has
completed 30 Years of its meaningful service to the people of Gublarga and Bidar
districts. Since inception, the bank is striving hard to achieve its set objectives by
serving 631 villages of Gulbarga district in its service area. The bank has now extended
the coverage to all urban and semi-urban centers in both the districts.
It is indeed heartening to note that KGB has been adjudged as the 3 rd best RRB
among SBI sponsored RRBs in the country for the year 2002-03, the first ever large size
During the year 2008-09 the bank crossed a major milestone by surpassing
Rs.1916 crores of business by registering a growth of 18.27% over the previous year.
Further the Bank has nearly doubled its total Business during the last 3 years from Rs.
1000 crores as on march 2006 to Rs. 1916 crores as on March 2009. Systematic,
proactive and sustained efforts are continued to accomplish all round excellence.
2 BRANCH NETWORK:
Gulbarga 85
Bidar 34
Total 119
Source: 2008-09 Annual report of KGB
As at the end of the financial year, the Bank is having a well spread-out network
of 119 branches, 85 in Gulbarga district and the remaining 34 in Bidar district with the
followign composition.
1. Urban 07 03 10
2. Semi-Urban 12 04 16
3. Rural 66 27 93
Total 85 34 119
During the financial year 2008-09, the bank has opened 3 New branches two in
Gulbarga District and one in Bidar district. There are 4 Area offices, of which are in
Gulbarga District situated at Gulbarga, Sedam and Shahapur and one in Bidar.
The bank has recorded a growth of Rs. 14, 51,407 thousands during 2008-09 as
against Rs. 14, 09,695 thousands during the last year. (Achieved during the previous
year 2007-08). During the year the bank has disbursed Rs. 48, 18,642 thousands as
Kisan credit cards under KGB brand name KRISHNA KRISH CARD, the bank has
disbursed an amount of Rs. 342,45,46 thousands to 25926 new formers during the
year, with this the total number of KKCS issued by the bank has short of to 167383. All
eligible borrowers have been issued with the credit cards and personal accident
insurance cover has been provided to all the eligible card holders (i.e below the
stipulated age of 70 Years) under personal Accident Insurance Scheme (PAIS). The
share of premier borne by bank is Rs. 1498 thousands as against Rs. 499 thousands
contributed by borrowers.
outstanding decreased to Rs. 1867.12 laksha as on 31.03.2009 from Rs. 2329.89 lakhs
The Bnak has erected swarozgar credit card scheme publicity hoardings at 16
prominent places at district and taluka centers for publicity of swarojgar Credit card
Due importance has been given for imparting training to staff to upgrade their
knowledge and skill by deputing the staff to upgrade their knowledge and skill by
deputing the staff to different training centers of SBI, NABARD and Reserve Bank of
India. During the year as many as 460 members of staff were deputed to various
RBI. The Bank also has conducted in house training to RDO’s with the completion of
100% computerization of the Bank, Bank has imparted computer training covering 460
With the approval of the board and after getting permission from sponsor Bank,
Bank has recruited 31 officers and 56 clerical staff and required training provided to
There are three Associations/unionism the Bank viz., Krishna Grameen Bank
Officers Association, Krishna Grameena Bank Employees union and Krishna Grameena
on staff discipline and productivity. Excellent work has been done by majority of KGB
staff in reduction of NPAs, maximizing profits, eliminating four loss making branches of
previous year reinforcing the rapport with the banks clientele, marketing of SBI life
products, prompt submission lead bank return, shifting of head office premises to a new
etc., deserves special mention and commendation, KGB staff have responded
dress code voluntarily in a phased manner. A modest beginning has been made
c) Computerization:
After achieved 100% computerization of Head Office, Area Office, and 112
branches, the Bank is moving towards migration of all branches to core Banking
solution (CBS). As per the direction received from the State Bank of India, our sponsor
Bank, CBS Software Bank 24, (which is being used at SBI branches), will be rolled out
d) Corporate Governance:
The Bank is committed to follow the best practices in the area of corporate
of corporate Governance, it has formed an audit committee of the board which held its
During the year, six Board meetings and five Audit committee meetings were
held. Valuable services have been rendered by the Directors of the Board.
With a view to bring greater objectivity in audit & inspection area, it is now
getting officers from other RRBs Sponsored from SBI group to inspect our branches, by
report.
The Bank has taken special efforts to popularized solar lighting at villages where
power supply is inadequate / erratic. To this end a special as been formulated under
tie-up arrangement with a reputed solar equipment manufacturer. KGB branches facing
power crisis in remote corners have also being supplied with solar equipment to
popularize non-conventional renewable energy. KGB has installed solar lighting system
KGB has been adjudged as the Best RRBs amongst SBI Sponsored RRBs for the
For the second consecutive year, KGB has bagged shield for excellent
performance in SHG coverage for the Bank and two branches in Karnataka state
from NABARD.
Introduced audit committee of the bank’s Board of Directors I Two meetings has
Two rural godowns financed already. Two proposals for cold storage financing
are under consideration. Agree-clinics financed-and two on the lookout for new
ones.
cash surplus SHG members with LPG cylinders & stove, solar lighting system,
rural housing and toilet facilities etc., to improve their quality of life.
of voluntary dress code for staff by utilizing the cash incentive amount of Rs.
4.54 Lakhs received from SBI life for marketing their products.
Building a brand image for the bank for the bank by introducing various
Irrigation), Krishna Krishi Card, Krishna Gold Card, Krishna Jeevana Mitra-a
saving bank deposit scheme with insurance benefit, krishna Mahila Mangala
answered satisfactorily. The program has been well received & appreciated by
GULBARGA was known as ‘KALBURGI’ in former days which means stony land in
Kannada. Gulbarga district is situated in the northern part of Karnataka State. In the
earlier days, Gulbarga was a district of Hyderabad Karnataka area and became a part of
Recorded history of this district dates back to the 6th Century AD. The
Rashtrakutas gained control over the area but the Chalukyas regained their domain
within a short period and regained supreme for over two hundred years. The Kalahari’s
who succeeded them ruled till the 12th Century AD. Around the close of the 12th
century.
supremacy of the Chalukyas and kalachuris. About the same period the kakatiya kings
of Wrangle came into prominence and the present Gulbarga and Raichur districts
formed part of their domain. The Kakatiya power was subdued in 1321 AD and the
entire Deccan including the district of Gulbarga passed under the control of the Muslim
Emperors of Delhi.
(Source : www.gulbargacity.com)
The revolt of the Muslim officers appointed from Delhi resulted in founding of the
Bahmani kingdom in 1347 AD, by Hassan Gangu who chose Gulbarga to be his capital.
When the Bahmani dynasty came to an end, the kingdom broke up into five
independent Sultanates and the present Gulbarga district came partly under Bidar and
passed back to the Mughal Empire. In the early part of the 18th century when Mughal
Empire was declining Asaf Jha a general of Aurangzeb became independent and formed
the Hyderabad State in which a major part of Gulbarga area was also included .In 1948
Hyderabad state became a part of Indian Union and in 1956, excluding two talukas
which were annexed to Andhra Pradesh the remaining talukus of Gulbarga district
Hyderabad and Bidar. Train from southern part of India to Mumbai and Delhi passes
through Gulbarga. Shri Kshetra Gangapur an well known pilgrimage of God Shri
Sadguru Dattarya is very close from Gulbarga. The climate of the district is generally
dry and healthy with temperature ranging from 5c to 45c and an annual rainfall of
about 750mm. The entire district is situated in Deccan Plateau and the general
Two main river, Krishna and Bhima, flow in the district the predominant type of
soil in the district is black soil. The district has a large number of tanks which in
addition to the river irrigate the land. The Upper Krishna Project is major irrigational
venture in the district Jowar, groundnut rice, and pulses are the main crops.Gulbarga
textile, leather and chemical industries sectors. Gulbarga has a University with Medical
Later the kingdom broke up into a number of smaller kingdoms - Bijapur, Bidar, berar,
Ahmednager and Golconda. The last of these, Golconda, finally fell to Aurangzeb in
1687. Gulbarg’s old moated fort is in a much teteriorated state, but it has a number of
interesting buildings inside including the Jama Masjid, reputed to have been built by a
Moorish architect during the late 14th or early 15th century who imitated the great
mosque in Cordoba, Spain. The mosque is unique in India, with a huge dome covering
the whole area, four smaller ones at the corners, and 75 smaller still all the way
around. The fort itself has 15 towers. Gulbarga also has a number of imposing tombs of
Bahmani kings, a shrine to an important Muslim saint and the Sharana Basaveshwara
Temple.
District ranks 13th in the industrial development. It is endowed with rich deposits
of limestone and houses major cement factories. Besides, the district has rich mineral
deposit of gypsum, moulding sand, quartz, calcareous with Shahabad stone, steatite
and pink granite. Details of industries in the district are furnished below:
Now the number of SSI units has been increased from 12437 in the year 2008-
09 to 15346 in the year 2009-10.
Rural banking in India started since the establishment of banking sector in India. Rural Banks in
those days mainly focussed upon the agro sector. Regional rural banks in India penetrated every
corner of the country and extended a helping hand in the growth process of the country.
SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI is spread in
13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East. The total
number of SBIs Regional Rural Banks in India branches is 2349 (16%). Till date in rural banking
in India, there are 14,475 rural banks in the country of which 2126 (91%) are located in remote
rural areas.
Apart from SBI, there are many other banks which function for the development of the rural
areas in India. These banks are listed below:
Chhattisgarh Gujarat
Chhattisgarh Gramin Bank Dena Gujarat Gramin Bank
Surguja Kshetriya Gramin Bank Baroda Gujarat Gramin Bank
Durg-Rajnandgaon Gramin Bank Saurashtra Gramin Bank
Karnataka Rajasthan
Karnataka Vikas Grameena Bank Baroda Rajasthan Gramin Bank
Pragathi Gramin Bank Marwar Ganganagar Bikaner
Cauvery Kalpatharu Grameena Gramin Bank
Bank Rajasthan Gramin Bank
Krishna Grameena Bank Jaipur Thar Gramin Bank
Chikmagalur-Kodagu Grameena Hodoti Kshetriya Gramin Bank
Bank Mewar Anchalik Gramin Bank
Visveshvaraya Gramin Bank
Mizoram
Mizoram Rural Bank
Uttar Pradesh Uttaranchal
Purvanchal Gramin Bank Uttaranchal Gramin Bank
Kashi Gomti Samyut Gramin Nainital Almora Kshetriya
Bank Gramin Bank
Uttar Pradesh Gramin Bank
Shreyas Gramin Bank
Lucknow Kshetriya Gramin Bank
Ballia Kshetriya Gramin Bank
Triveni Kshetriya Gramin Bank
Aryavart Gramin Bank
Kisan Gramin Bank
Kshetriya Kisan Gramin Bank
Etawah Kshetriya Gramin Bank
Rani Laxmi Bai Kshetriya Gramin
Bank
Baroda Western Uttar Pradesh
Gramin Bank
Devipatan Kshetriya Gramin Bank
Prathama Bank
Baroda Eastern Uttar Pradesh
Gramin Bank
VISION - KGB
ORGANISATIONAL STRUCTURE:-
The Bank’s Head Office is located at Kusnoor Road, Gulbarga in its own
building with spacious accomodation for all Administrative Departments, Board
Room, Meeting Hall, Computer Lab and above all, Customer's Lounge. The
building centrally air conditioned The Bank is headed by a Chairman, a TEG
Scale-VI Officer on deputation from State Bank of India. The General Manager
is also on deputation from State Bank of India & is of the rank of Asst.General
Manager(AGM). The Manager(Audit & Vigilance) has responsibility of Audit &
Vigilance of all the branches/Area Offices and various Departments at H.O.
DEPOSIT PRODUCTS
Current Account
Savings Bank Account-
Term Deposit Account
Special Term Deposit Account
Recurring Deposit Account
Krishna Nitya Nidhi Account
Krishna Tax Saver Scheme
"KRISHNA SUPER SAVER TERM DEPOSIT" has been introduced with
effect from 01.06.2006. The salient features of the scheme are as under:
Nomination
4. Land Development
5. Farm Mechanisation
9. Education Loans
LAND DEVELOPMENT:
a) Purpose : For leveling, bunding and silt application.
b) Eligibility : All the farmers owning the landed property.
c) Loan amount : Rs.4000/- per acre.
d) Disbursement : In stages by seeing the progress of work.
Pattern.
e) Security or Margin:
i) Loan up to Rs.50,000/- : Loan agreement.
ii)Loan above Rs.50,000/- : Equitable/registered mortgage on
landed property.
iii) Margin : 10%
f) Repayment : 11 years with one year grace period.
g) Records to be provided:
i) Loans up to Rs.50,000/- :
ROR
Holding certificate
Photos – 3
No-due certificate
ii) Loans above Rs.50,000/-
ROR
Holding certificate
13 years EC
Legal opinion on landed property
Photos 3
No due certificate
FARM MECHANISATION:
a) Purpose : To purchase tractor+trailor and agriculture
equipments.
b) Eligibility : Farmer should own 6 acres of perennial
irrigated
(12 months) or 15 acres of dry land.
c) Loan amount : As per quotation of tractor+trailor+
agriculture implements.
d) Disbursement : Directly to the dealer as per quotation enclosed.
pattern.
e) Security and Margin:
Hypothecation of tractor+trailor+implements purchased out of
bank finance.
Equitable/registered mortgage of landed property offered as a
security.
Margin : 10-15% of project cost.
f) Repayment : 18 half-yearly instalments with a grace period of 11
months.
g) Records to provided:
ROR – 5 years.
Holding Certificate
No due certificate
13 years EC
Legal opinion on landed property
Quotation for tractor + trailor + implements
Photos-3
PLANTATION AND HORTICULTURE CROPS :
a) Purpose : To promote and encourage farmers to grow different
kinds of fruits crops in available infrastructure.
b) Eligibility : All the farmers having irrigation source are
eligible
for loan.
c) Loan amount : As per NABARD unit cost and infrastructure to be
develop for growing of fruit crops.
d) Disbursement : Disbursement of loan amount as per the schedule in
pattern stages.
e) Security Margin:
Loan up to Rs.50,000/-:
Loan agreement and hypothecation of moveable assets.
Loan above Rs.50,000/-:
1. Loan agreement.
2. Hypothecation of moveable assets created.
3. Equitable / registered mortgage on landed property offered
as security.
Margin : 10-15% of the project cost.
f) Repayment : 5-10 years depending upon hypothecation of fruit crops
grown and the return on the same.
g) Records to be provided:
Loans up to Rs.50,000/- :
1. ROR - 5 years.
2. Holding certificate
3. Photos – 3
4.No-due certificate
Loans above Rs.50,000/-
1. ROR-5 years
2. Holding certificate
3.13 years EC
4. Legal opinion on landed property
5. Photos 3
6. No due certificate
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DAIRY DEVELOPMENT COMMERCIAL:
a) Purpose : For rearing of milch animals as a allied activity to
agriculture
It supplements the agriculture income. It will provide
full
Employment opportunity to family members and
labours.
b) Eligibility: Farmers having irrigated land to grow green grass and
dry
fodder required to feed the animals.
c) Loan amt: As per NABARD unit cost to purchase CB cows, graded
she-buffalos, shed construction, concentrate feed for
one
month, veterinary aid etc.
d) Disbursement pattern:
Disbursement of loan amounts as per schedule for
construction of shed, equipment, animals and
concentrate feed.
e) Security + Margin.
Loan amount up to Rs.50,000/-:
1. Hypothecation of animals and its offspring created out
<> of bank finance.
2. Loan agreement.
Loan amount above Rs.50,000/-:
1. Hypothecation of animals and its offsprings created
out of bank finance.
2. Equitable/registered mortgage of landed property
offered as a security to the loan amount.
f) Repayment : 60 equated monthly installments with 3 months
grace period
g) Records to be produced:
g) Records to be :
1) Quotation provided
2) Salary Certificate
3) Salary undertaking from drawing officer.
SELF EMPLOYED AND PROFESSIONALS:
a) Purpose : To undertake gainful self employment.
b) Eligibility : Persons undergone short duration training
programmes and professionals like Doctors
Engineers etc.
c) Loan amount : Need based or cost of the project to be
undertaken.
d) Disbursement Pattern:
i) Investment credit – Directly to the dealers/suppliers as per
Quotation.
ii) Working capital - Directly to the borrower to carry-out
the business.
e) Security + Margin :
i)Loan amount up to Rs.25,000/- : Hypothecation of assets
created.
ii)Above Rs.25,000/- up to : Hypothecation of assets +
Rs.50,000/- third party guarantee
iii) Above Rs.50,000/- : Equitable/registered
mortgage of immovable property worth equal to the
loan amount.
Margin : 10-15%
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<>Krishna Grameena Bank is a Corporate agent of SBI Life
Insurance Company Ltd and providing following insurance
products to its customers.
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Revised Rate
SL. Existing
TYPE OF LOANS AND ADVANCES
Rate
(wef 01-08-2008)
NO
ACC
Upto Rs.50000/- 7%
1 Rs.50001/- to Rs.2 lakhs 7%
Above Rs.2 lakhs to 3 lakhs 7%
Above Rs.3 lakhs 14%
ATL/AATL
Upto Rs.25000/- 13%
2 Rs.25001/- to Rs.50000/- 13%
Rs.50001/- to Rs.200000/- 14%
Above Rs.2 lakhs 14%
3 GCC/GTL/Composite Loan
(Rural Artisans & Craftsmen)
Upto Rs.25000/- 13%
Rs.25001/- to Rs.50000/- 13%
Rs.50001/- to Rs.200000/- 14%
Above Rs.2 lakhs 14.50%
GCC/TLC
To Other than Rural Artisans, Craftsmen
Regional Offices
BOARD OF DIRECTORS
SHRI V. M. HAGARAGI
CHAIRMAN
DIRECTORS
1.SHRI S. N. KARAJAGI
ASSISTANT GENERAL MANAGER
Rural Planning and Credit Department
Reserve Bank of India
BANGALORE
2.SHRI P. G. SHET
District Development Manager
National Bank for Agriculture and
Rural Development (NABARAD)
GULBARGA
3. SMT. GURAMMA SIDDA REDDY
MIG-19, K H B Colony
BIDAR
GULBARGA
BIDAR
8. SHRI.Hanumanthraju B. N.