You are on page 1of 38

ROLE OF KRISHNA GRMEENA BANK IN DEVELOPMENT OF SSI: A STUDY

WITH REFERENCE TO GULBARGA CITY.

SCOPE OF THE STUDY:

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 &

assessment of its input on beneficiaries.

OBJECTIVES OF THE STUDY:

a) To trace the need for evaluation of financial institution in development of

industries in general and KGB in particular.

b) To study the role of KGB in development of industries in Gulbarga city.

c) To study the financial assistance in the form of subsidies and incentives provided

by KGB.

d) To ascertain Impact financial assistance provided by KGB in development of

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

method with the respondent units.

ii) Secondary Data:

The Secondary data was collected from the banks. Annual reports & record

maintained of the small scale development institution, book & some sites on the net.

LIMITATIONS OF THE STUDY:

The present study also not free from certain limitations. The following are the

some of the limitations.

1. Time is the main constraint because of the project work is to be completed

within a stipulated period of time.

2. The proprietor owing them are in many cases are illiterate & therefore, not in a

position to appreciate the value of there survives or research studies.

3. Some proprietor are of raid of parting it any information no amount of

persuasion could bring about the desired results.

4. This study is confined to Gulbarga city only.


CHAPTER SCHEME:

The study has been divided into 5 chapters.

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 Three: Provides an over view of the small scale industries.

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

RRB headed by a deputy geberak manager if Senior Benefits and Utilization

Management (SBUM) ti attain this coveted status.

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:

Table No: 2.1 District wise Branches

Districts No. of Branches

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.

Sl. Gulbarg Bidar


Category of Branches Total
No. a District District

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.

3. LOANS AND ADVANCES OUTSTANDING:

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

against ACP target of Rs. 42, 82,585 thousands.


4. KRISHNA KRISHI CARD (KKC) SCHEME:

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.

5. SWAROJGAR CREDIT CARDS (SCC):


The bank has sanctioned 108 SCC during the year 2008-09, taking the

cumulative number of cards issued to 9966 as against 9858 as on 31.03.2008. Amount

outstanding decreased to Rs. 1867.12 laksha as on 31.03.2009 from Rs. 2329.89 lakhs

as on March 2008 due to substantial recovery during the year.

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

(SCC) scheme, which enhanced the Bnak’s image.


6. OTHER PARTICULARS:

a) Human Resources Development/Training:

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

training centers. Special training programs were held for messenger.

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 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

staff and officers during the year.

The details are as under:

Sl. No. of employees


Particulars
No. trained

1. Deputation to various training institutes 144

2. Computer Training 460

3. In house Training for RDO’s -

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

new staff at different training centers.


b) Industrial Relations:

There are three Associations/unionism the Bank viz., Krishna Grameen Bank

Officers Association, Krishna Grameena Bank Employees union and Krishna Grameena

Bank SC/ST Staff Association.

Cordial and harmonious relationship has been maintained without compromising

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

premises celebration of silver jubilee, training programme, SHG linkage programme,

etc., deserves special mention and commendation, KGB staff have responded

spontaneously to the suggestion of KGB chairman. For a gradual adoption of formal

dress code voluntarily in a phased manner. A modest beginning has been made

already in this direction.

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

in all our branches. The whole process of migration to CBS is to completed on


30.09.2009, core Banking implementation team consisting of Six members has been

formed to implement the project in the Bank.

d) Corporate Governance:

The Bank is committed to follow the best practices in the area of corporate

Governance. We KGB believe that proper corporate Governance facilitates and

guarantees effective management and promotion/control of business activities. As part

of corporate Governance, it has formed an audit committee of the board which held its

first meeting on 8th December 2009 and deliberated on important aspects.

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

and large, time discipline has been maintained in compliance/closure of inspection

report.

e) Popularizing Solar Energy:

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

in our garden head office.


BEST PRACTICES IN CORPORATE GOVERNANCE OF KGB

 KGB has been adjudged as the Best RRBs amongst SBI Sponsored RRBs for the

year 2003-04 (Second Position)

 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

been held already effective follow-up action.

 Introduction of Asset Liability Management by constituting a Asset Liability

Committee comprising Chairman, General Manager, Manager (Funds)

 Self Help Promoting Institution (SHPI)-an exclusive woman development officer.

 100% timely submission of lead bank returns

 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.

 Besides financing income generation activities, we have been actively financing

cash surplus SHG members with LPG cylinders & stove, solar lighting system,

rural housing and toilet facilities etc., to improve their quality of life.

 Extensive coverage of SC-ST & Minorities under over lending activity.

 Harmonious Industrial Relations without compromising on discipline, Punctuality,

Productivity & Efficiency.


 Catering to the training needs by utilizing the facility at no cost or moderate cost

with bankers institute for rural development, Lucknow, NABARD, College of

Agricultural Banking, RBI Pune, SBI, SBI Life, NGO’s

 Introduction of Quality Circle at Head office, Initiation of the process of adoption

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

schemes/programs with nick name ‘KRISHNA like Krishna Dhara (Minor

Irrigation), Krishna Krishi Card, Krishna Gold Card, Krishna Jeevana Mitra-a

saving bank deposit scheme with insurance benefit, krishna Mahila Mangala

Yozane, Krishana Senior Citizen deposit scheme, Krishna Sameepya (A customer

relation program), Krishna Jyoti ( A solar energy lighting system) etc.

 Participating in AIR sponsored phone in program by the chairman where in 45

minutes, our clintal/general public fielded 23 interesting questions, which were

answered satisfactorily. The program has been well received & appreciated by

the user public

 Long range, short range planning pro-activeness, perseverance, team building,

customer friendliness, building up quality & profitable business, meticulous

adherence to systems/procedures, control mechanisms, honesty, sincerity,

transparency have been hallmarks of our functioning.

(SOURCE: Annual Report of Krishna Grameena Bank, 2008-09)


HISTORY OF GULBARGA

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

Karnataka State after re-organization of states.

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.

The Yadavas of Devagiri and the Hoysalas of Dwarasamadra destroyed the

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

partly under Bijapur.


With the conquest of the Deccan by Aurangezeb in the 17th century, Gulbarga

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

became part of New Mysore State.

Gulbarga is 613 Km north of Bangalore and well connected by road to Bijapur

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

elevation ranges from 300 to 750 meters above MSL.

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

an industrially backward district is presently showing signs of growth in the Cement,

textile, leather and chemical industries sectors. Gulbarga has a University with Medical

and Engineering Colleges.


This town was the Bahmani capital from 1347 until its transfer to Bidar in 1428

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.

INDUSTRY & COMMERCE:

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:

SMALL SCALE INDUSTRIAL UNITS ............................. 9947


EMPLOYEES ............................. 65934
NUMBER OF FACTORIES (2001) ............................. 150
EMPLOYEES ............................. 24390
UNEMPLOYED ON LIVE REGISTER (2002) ............................ 11500
The total number of SSI units on 31st March, 2009 were ........ 12437

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:

Andhra Pradesh Bihar


 Andhra Pradesh Grameena Vikas  Madhya Bihar Gramin Bank
Bank  Bihar Kshetriya Gramin Bank
 Andhra Pragathi Grameena Bank  Uttar Bihar Kshetriya Gramin
 Deccan Grameena Bank Bank
 Chaitanya Godavari Grameena  Kosi Kshetriya Gramin Bank
Bank  Samastipur Kshetriya Gramin
 Saptagiri Grameena Bank Bank

Chhattisgarh Gujarat
 Chhattisgarh Gramin Bank  Dena Gujarat Gramin Bank
 Surguja Kshetriya Gramin Bank  Baroda Gujarat Gramin Bank
 Durg-Rajnandgaon Gramin Bank  Saurashtra Gramin Bank

Haryana Himachal Pradesh


 Harayana Gramin Bank  Himachal Gramin Bank
 Gurgaon Gramin Bank  Parvatiya Gramin Bank

Jammu & Kashmir Punjab


 Jammu Rural Bank  Punjab Gramin Bank
 Ellaquai Dehati Bank  Faridkot-Bhatinda Kshetriya
 Kamraz Rural Bank Gramin Bank
 Malwa Gramin Bank
Assam

 Assam Gramin Vikash Bank Kerala


 Langpi Dehangi Rural Bank  Narmada Malwa Gramin Bank
 North Malabar Gramin Bank
Jharkhand
Tamil Nadu
 Jharkhand Gramin Bank
 Vananchal Gramin Bank  Pandyan Grama Bank
 Pallavan Grama Bank
Madhya Pradesh
Maharashtra
 Narmada Malwa Gramin Bank
 Satpura Kshetriya Gramin Bank
 Madhya Bharath Gramin Bank  Marathwada Gramin Bank
 Chambal-Gwalior Kshetriya  Aurangabad -Jalna Gramin Bank
Gramin Bank  Wainganga Kshetriya Gramin
 Rewa-Sidhi Gramin Bank Bank
 Sharda Gramin Bank  Vidharbha Kshetriya Gramin
 Ratlam- Mandsaur Kshetriya Bank
Gramin Bank  Solapur Gramin Bank
 Vidisha Bhopal Kshetriya Gramin  Thane Gramin Bank
Bank  Ratnagiri-Sindhudurg Gramin
 Mahakaushal Kshetriya Gramin Bank
Bank
 Jhabua Dhar Kshetriya 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

Orissa West Bengal

 Kalinga Gramya Bank  Bangiya Gramin Vikash Bank


 Utkal Gramya Bank  Paschim Banga Gramin Bank
 Baitarani Gramya Bank  Uttar Banga Kshetriya Gramin
 Neelachal Gramya Bank Bank
 Rushikulya Gramya Bank

Meghalaya Arunachal Pradesh


 Ka Bank Nogkyndong Ri Khasi-  Arunachal Pradesh Rural Bank
Jaintia
Manipur
Nagaland  Manipur Rural Bank
 Nagaland Rural Bank
 Tripura 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

“To Be The Preferred Banking Institution 

Of The People Of Our Area,

Committed To Improve The Living Standards

Of The Mass So as to achieve Inclusive Growth

With Sustained Viability”

 MISSION 2010-2011 - KGB-  


   To Surpass Rs.2800 Crores Of Business by 31-03-2011.

   To Earn A Minimum Net Profit Of Rs.30 Crores

   To Bring down Gross NPA to below 1%

 
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.

The other departments at HO 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

    The Branch net work is spread in to TWO REGIONS


 
1. Gulbarga Region          : 54 branches
2. Bidar Region                 : 48 branches
3. Under GM’s control      : 17  Branches
 
TOTAL: 119 branches
PRODUCTS AND SERVICES:-

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:
 

KRISHNA SUPER SAVER


1 Name of the Deposit Scheme TERM DEPOSIT
2 Scheme introduced with effect from 01-06-2006
3 Operation of the scheme up to Till further instructions
Minimum six year to
4 Period of Deposit
Maximum ten years.
5 Minimum Deposit Amount Rs. 25,000/-
Term Deposit and
6 Type of Account
Special Term Deposit
7 Rate of interest 7.50% p.a. at quarterly rest.
0.50% above the rate
8 Senior citizen and women Depositors applicable to other depositors
0.50% below the rate
applicable for the period
9 Penalty for premature closure
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 depositors,
nomination in deposit accounts is compulsory
 A depositor(s) however has / have the right to specify different
nominations for different accounts  by completing the appropriate forms.
 Further, the applicant(s) is / are 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
 LOAN PRODUCTS

1.  Krishna Krishi Card

2. Loan Against Warehouse Receipts

3. Agriculture Term Loans

4. Land Development

5. Farm Mechanisation

6. Plantation and Horticulture Crops

7. Dairy Development Commercial


8. Gold Loans

9. Education Loans

10. Consumer Durables

11.Self Employment and Professionals

12. Retail Traders and Small Business Finance

13. Insurance Products

14. Housing Loans

15. Mortgage Loans

16. Agriculture Gold Loans

17. Clean Demand Loans

18. General Term Loans

19. SRTO/Vehicle Loans


KRISHNA KRISHI CARD : CROP LOANS:

Purpose : For raising different types of field crops.

Eligibility : All the 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/- > 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) Loan amount up to Rs.50,000/- :

                                  (i) ROR


                                  (ii) Holding Certificate
                                  (iii) No due certificate
                                  (iv) Photos (3)
     b) Above Rs.50,000/- :

                                  (i) ROR


                                 (ii) Holding Certificate
                                 (ii) No due certificate
                                 (iii) Photos
                                 (iv) Encumbrance Certificate
                                                         (13 years)
                                 (v) Legal opinion
                                 (vi) Mortgage deed with
                                                    Sub-Registar.
 
LOAN AGAINST WARE-HOUSE RECEIPTS
 a.Purpose :-                              Any purpose

b. Eligibility :-                            Farmers having land and stored their


                                                  produce at State ware-house or Central
                                                  ware-house corporation.

c.Loan amount :-                     70% of the market value of the agriculture


                                                 produce stored.

d. Disbursement pattern:-     Single instalment immediately after


                                                 Completion of documents.

e. Security Margin :-                Pledge on ware-house receipts.

f. Repayment :-                       Within the stipulated date of ware-house


                                                 Corporation.

g. Records to be produced :- 1) Warehouse receipt – State or Central


                                                 2) Pledge note from warehouse corporation.
       Minor irrigation including lift irrigation:
 
  a) Purpose                 : New well, bore-well, SIP set, IP set, DP set,
                                       Pipe line, sprinkler and drip irrigation etc.
 
  b) Eligibility               : All the farmers owning minimum of 3 acres of
                                       of land.
 
  c) Loan amount         : As per NABARD unit cost. 
  d) Disbursement       : For development activity in the field, in stages,
                                       and purchase of assets as per quotation    
                                      directly to the dealer.
 
  e) Security & Margin:
 
          1.Loan up to Rs.50,000/-:
                         Loan agreement and hypothecation of moveable assets.
 
           2.Above Rs.50,000/-:       
                            Hypothecation of assets created.
                             Equitable/registered mortgage of landed property.
 
          Margin : 10-25% depending on cost of the scheme.  
   f) Repayment : 5 years to 10 years depending on the scheme.
                           Minor irrigation including lift irrigation:
 
   g) Records to be produce: 
         Loan up to Rs.50,000/-: 
             1. ROR, Holding certificate, No due certificate.
             2. To purchase IP set, Pipeline – quotation.
            3. For lift irrigation : Water lifting permission from department of
           Minor Irrigation
 
        Loan above Rs.50,000/-: 
               1. ROR, Holding certificate, no due certificate.
               2. 13 years emcumberance certificate.
               3. Legal opinion on landed property.
               4. IP set, pipeline, drip sets, sprinkler sets, SIP set etc.,: Quotation.
               5. Passport size : 3 photos.

  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
 
Copyright 2005 - 2006 © www.krishnagrameenabank.com All Rights Reserved.
Designed by SysFoCon Service Pvt.ltd
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:

            i)Loans up to Rs.50,000/- :

                ROR- 5 years


                Holding certificate
                Photos – 3
                 No-due certificate from VSSN and other banks.
  
         ii)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
GOLD LOANS:
a.Purpose                : For any purpose i.e., personal needs.
 
b.Eligibility              : Existing customer of the branch
 
c.Loan amount        : Rs.450/- per gram
 
d.Disbursement      : Immediately after completion of sanction and
                                     Pattern documentation.
 
f.Security + Margin: Pledge on gold ornament.
 
g.Repayment           : Within 12 months from the date of availment.
 
h.Records to be       : Certificate from gold appraiser and demand
                                      Provided promissory note.
 
EDUCATION LOAN:
Purpose     : Financial assistance to  meritorious     students    for
pursuing higher education in India and abroad.             
 
Eligibility     :Professional courses,engineering, medical, griculture,
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 subject to repaying capacityof the
parents/students with margin.
 
 Rs.7.50 lakhs       Studies in India           : Maximum
 Rs.15lakhs          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: 
        Up to Rs.4 lakhs   : No security 
         Above Rs.4 lakhs: Collateral security equal to  100% of the loan
amt.
 
Margin:
 
    Studies in India                  : 5%
    Studies abroad                   :10%
 
  Rate of interest                  : 12% p.a.
 
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.
    Photo copies – 3.
    Copies of foreign exchange, permit etc.
CONSUMER DURABLES:
   a) Purpose : To purchase home need items like       TV, computer,
                           Refrigator etc.

   b) Eligibility : Salarised persons/persons having monthly income.

   c) Loan amount : Maximum Rs.25,000/- for purchase of


                                 consumer durables.

   d) Disbursement Pattern: As per quotation directly to the dealer.

   e) Security+Margin : Hypothecation of consumer durables.


       Margin : 15-25%
   f) Repayment : 36 equated monthly instalments.

   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%

f) Repayment : Monthly instalments.


g) Records to be provided :
           I) Quotation for assets purchase out ofBank finance.
            ii) Legal Opinion on immovable property offered as security.
 
 
 
 
RETAIL TRADERS AND SMALL BUSINESS FINANCE:
a) Purpose   : For all eligible trading and small business
                         activity.
b) Eligibility : All persons engaged in trading activity and
                          petty business.
c) Loan amount : Need base advance.
d) Disbursement pattern : Cash credit account disbursement for
                                                replenishment of stocks.
e) Security + Margin
          i) Up to Rs.25,000/- : Hypothecation of stock in trade.
          ii) Rs.25000/- to Rs.50000/-: Hypothecation of stock in trade +
                 third party guarantee.
          iii) Above Rs.50,000/- : Hypothecation of stock + third party
                         guarantee + registered/equitable
                          mortgage on immovable property.
Margin : 10-15%
f) Repayment :
     I) Cash credit account repayable on demand.
     ii) General Cash Credit : Maximum 18 monthly
           instalments.
g) Records to be provided:
     i) Receipts and bills
     ii) Stock statement for loan limit of Rs.1 lakh and above
    iii) Licence from competent authority.
 
 
     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.

RATE OF INTEREST ON ADVANCES      W.E.F.01.08.2008

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  

4 Upto Rs.25000/- 13%


Rs.25001/- to Rs.50000/- 13%
Rs.50001/- to Rs.200000/- 14%
Above Rs.2 lakhs 14.50%
House building loans  
5 Upto Rs.2.00 lakhs 12.75%
Above Rs.2.00 lakhs 13.00%
6 S.R.T.O 14.50%
7 Gold Loans 14.50%
Ware House Receipts  
8 Up to Rs.50,000/- 9.00%
Above Rs.50,000/- 9.50%
Clean Demand Loans  
9 Salaried persons (with check-off facility) 14.00%
 Others 15.00%
Government Sponsored Schemes
As per the
type of As per the type of
Upto Rs.25000/-
loan loan (ATL/AATL
10 (ATL/AATL
Rs.25001 to Rs.2.00 lakhs
/GTL/GCC)
/GTL/GCC)
Above Rs.2.00 lakhs
11 Self Help Groups 13.00%
12 NSC/KVP/Other 14.00%
13 Consumer Durables 15.00%
14 Mortgage Loans 15.00%
15 Car Loans  
16 Two Wheeler Loans  
                           *This is in compliance with the policy of central government.

      Penal interest:

      Overdue Accounts  : 1% above the rate applicable

      NPA Accounts       : 2% above the rate applicable

   Regional Offices
 

 Sl Regional Office Name Address and Telephone Number


Num
Shahbazar, Aland Road, GULBARGA-585101 Tel:
 1  Gulbarga
08472 - 242069  
 2  Bidar  Udgir Road, BIDAR. Tel: 08482 - 226060

BRANCHES COMING UNDER OUR REGIONAL OFFICES


 
Pin
Branch Name Tq. - District Tel Num
Code
Branches coming under GM Control    
Nehrugunj Gulbarga-Gulbarga 585104 08472-268263
08472-
Super Market, Gulbarga Gulbarga-Gulbarga 585101
221519
08472-
N V Layout, Gulbarga Gulbarga-Gulbarga 585103
232371
08472-
Shahabazar, Gulbarga Gulbarga-Gulbarga 585103
235440
08472-
Badepur, Gulbarga Gulbarga-Gulbarga 585105
224983
08477-
Aland Aland-Gulbarga 585302
202530
08443-
Shorapur Shorapur-Gulbarga 585224
256069
08474-
Chittapur Chittapur-Gulbarga 585211
236234
08475-
Chincholi Chicholi-Gulbarga 585307
273104
08483-
Humnabad Humnabad-Bidar 585330
270483
08481-
Basavkalyan Basavkalyan-Bidar 585327
250442
08482-
Bidar Bidar-Bidar 585401
228578
08470-
Afzalpur Afzalpur-Gulbarga 585301
283051
08442-
Jewargi Jewargi-Gulbarga 585310
236079
Pin
Branch Name Tq. - District Tel Num
Code
08479-
Shahapur Shahapur 585223
243209
08473-
Yadgir Yadgir-Yadgir 585202
252987
08441-
Sedam Sedam 585222
276149
Branches coming under REGION - I    
08478-
Harsoor Gulbarga-Gulbarga 585102
222754
08478-
Dongargaon Gulbarga-Gulbarga 585313
224059
08478-
Sonth Gulbarga-Gulbarga 585324
225808
08472-
Hagargundgi Gulbarga-Gulbarga 585308
213259
08472-
Biddapur Colony, Gulbarga Gulbarga-Gulbarga  
273907
Kapanoor Industrial Area Gulbarga-Gulbarga    
08472-
Omnagar, Gulbarga Gulbarga-Gulbarga 585105
245220
08472-
Karimnagar, Gulbarga Gulbarga-Gulbarga 585102
252300
08470-
Athnoor Afzalpur-Gulbarga 585301
260071
08470-
Revoor B Afzalpur-Gulbarga 585301
269439
08471-
Udachan Afzalpur-Gulbarga 585301
231513
08470-
Gobbur B Afzalpur-Gulbarga 585265
265018
08470-
Bandarwad Afzalpur-Gulbarga 585265
261116
08470-
Station Gangapur Afzalpur-Gulbarga 585213
267236
08470-
Desai Kallur Afzalpur-Gulbarga 585301
268568
Pin
Branch Name Tq. - District Tel Num
Code
08442-
Nelogi Jewargi-Gulbarga 585310
225010
08442-
Aralgundagi Jewargi-Gulbarga 585310
290272
08442-
Ankalga Jewargi-Gulbarga 585212
222041
08442-
Andola Jewargi-Gulbarga 585303
221691
08442-
Ijeri Jewargi-Gulbarga 585310
223974
08442-
Malli Jewargi-Gulbarga 585325
220027
08442-
Balbatti Jewargi-Gulbarga 585309
280409
08442-
Yadrami Jewargi-Gulbarga  
226543
08479-
Dornalli Shahapur-Gulbarga 585223
221073
08479-
Wanadurga Shahapur-Gulbarga 585368
219127
Bendebimbli Shahapur-Gulbarga 585368  
08479-
Wadagera Shahapur-Gulbarga 585368
219127
08443-
Devapur Shorapur-Gulbarga 585290
275350
08443-
Pethammapur Shorapur-Gulbarga 585290
273002
08443-
Rajankollur Shorapur-Gulbarga 585291
223907
08443-
Kodekal Shorapur-Gulbarga 585237
222850
08443-
Vajjal Shorapur-Gulbarga 585215
200207
08443-
Naganoor Shorapur-Gulbarga 585215
271073
08443-
Malagatti Shorapur-Gulbarga 585216
329784
Pin
Branch Name Tq. - District Tel Num
Code
08443-
Hunsagi Shorapur-Gulbarga 585215
200087
08473-
Yergol Yadgir-Yadgir 585218
215566
08473-
Gajarkot Yadgir-Yadgir 585214
225605
08473-
Putpak Yadgir-Yadgir 585214
225429
08473-
Kadechur Yadgir-Yadgir 585374
281055
08473-
Konkal Yadgir-Yadgir 585321
213737
08441-
Gurmitkal Yadgir-Yadgir 585214
225563
08473-
Station Area, Yadgiri Yadgir-Yadgir 585202
250466
Ramasamudra Yadgir-Yadgir    
08441-
Mudhol Sedam-Gulbarga 585318
220860
08441-
Kodla Sedam-Gulbarga 585222
283814
08441-
Kolkunda Sedam-Gulbarga 585318
222064
08506-
Yanagundi Sedam-Gulbarga 585214
280055
08474-
Tengli Chittapur-Gulbarga 585317
220565
08476-
Kollur Chittapur-Gulbarga 585218
226581
08474-
Hebbal Chittapur-Gulbarga 585312
225180
08474-
Alhalli Chittapur-Gulbarga 585211
222874
08474-
Dandothi Chittapur-Gulbarga 585211
224071
Kamalapur Dt. Gulbarga   08478-
Mahagaon Cross Dt. Gulbarga   08478-
Pin
Branch Name Tq. - District Tel Num
Code
230188
Branches coming under REGION - I I    
08477-
Salgera V K Aland-Gulbarga 585316
222182
08440-
Bhusnoor Aland-Gulbarga 585268
210140
08477-
Khajuri Aland-Gulbarga 585314
227449
08440-
Madiyal Aland-Gulbarga 585336
217980
08477-
Sarasamba Aland-Gulbarga 585302
238642
08477-
Chinchansur Aland-Gulbarga 585104
231051
08477-
Ladmugali Aland-Gulbarga 585316
233075
08477-
Tadakal Aland-Gulbarga 585343
229160
08477-
Narona Aland-Gulbarga 585311
228404
08475-
Ratkal Chincholi-Gulbarga 585322
247818
08475-
Chimmanchod Chincholi-Gulbarga 585306
241102
08475-
Nidagunda Chincholi-Gulbarga 585320
246087
08411-
Konchavaram Chincholi-Gulbarga 585305
249291
08475-
Sulepeth Chincholi-Gulbarga 585324
255067
08475-
Kodli Chincholi-Gulbarga 585312
242093
08483-
Changlair Humnabad-Bidar 585227
279069
08483-
Hallikhed K Humnabad-Bidar 585330
273177
Pin
Branch Name Tq. - District Tel Num
Code
08483-
Talmadgi Humnabad-Bidar 585329
279904
08483-
Bemalkhed Humnabad-Bidar 585227
276121
08483-
Ghatboral Humnabad-Bidar 585418
275951
08482-
Chaubara Bidar-Bidar 585401
229897
08482-
Kamathana Bidar-Bidar 585226
245224
08482-
Janawada Bidar-Bidar 585402
244180
Shivnagar Bidar Bidar-Bidar    
Chidri Road Bidar Bidar-Bidar    
08485-
Aurad B Aurad-Bidar 585326
280029
08485-
Murki Aurad-Bidar 585417
286605
08485-
Hokrana Aurad-Bidar 585326
284555
08485-
Jamagi Aurad-Bidar 585431
283370
08485-
Sonala Aurad-Bidar 585417
287377
08481-
Sastapur Basavkalyan-Bidar 585327
247074
08481-
Morkhandi Basavkalyan-Bidar 585327
254746
08481-
Muchalam Basavkalyan-Bidar 585327
256713
08481-
Belura Basavkalyan-Bidar 585327
259431
Ujalam Basavkalyan-Bidar 585419 9448349624
08481-
Algud Basavkalyan-Bidar 585419
257507
08481-
Harkud Basavkalyan-Bidar 585437
254490
Pin
Branch Name Tq. - District Tel Num
Code
Manthal Basavkalyan-Bidar    
08484-
Bhalki Bhalki-Bidar 585328
262510
08484-
Siddeshwar Bhalki-Bidar 585413
263128
08484-
Ghorchincholi Bhalki-Bidar 585411
269892
08484-
Saigaon Bhalki-Bidar 585416
267045
08484-
Mehkar Bhalki-Bidar 585416
269367
08484-
Kurubkhelgi Bhalki-Bidar 585328
267735
08484-
Bhatambara Bhalki-Bidar 585411
268130
08484-
Byalhalli Bhalki-Bidar 585415
210082
08484-
Alandi Bhalki-Bidar 585328
265653
 

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

4. SHRI ISHWAR B KHANDRE


C/O SHIR BHIMRAO KHANDRE

KHANDRE GALLI, GUNJ

BHALKI (DT. BIDAR)

5.  SALMA K FAHIM I.A.S.


Chief Executive Officer
Zilla Panchayat

GULBARGA

6.SMT. GURNEET TEJ I.A.S.


Chief Executive Officer
Zilla Panchayat

BIDAR

7. SHRI.P.P.G.Muni Subba Reddy


Assistant General Manager
State Bank of India
RO - BANGALORE

8. SHRI.Hanumanthraju B. N.

Assistant General Manager


State Bank of India
LHO - BANGALORE

The Head Office Building at Gulbarga


 

You might also like