CANARA BANK

INTRODUCTION TO BANKING
INTRODUCTION: Banking system has occupied an important position in our commercial world Banking institution is indispensable Banking system is playing a very important role in the economic development of our country. Commercial banks are having loans share in the total banking operation in our nation. Commercial banks are oldest institutions having a wide network of business.

Banks render very valuable service to the community to the trade and industry. They keep the wheels of trade, commerce and Industry always revolving. Banks providing financial assistance to small scale and large scale industries. Banks today are backbone of modern industry. They are essential part of the community.

ORIGIN OF BANK: There are different opinions regarding the origin of the term bank. According to some it is derived from Italian word Banco'. Latin word 'BANCUS' French word 'Banque' which means "a bench". In olden days European bankers using bench to transact their banking activities but according to others. The word "Bank" is derived from German word 'Bank which means 'Common fund raised form a large number of public ". Customer and banker relation as per Act Banker: Banker is one who does the business of banking. He is a dealer in money. Since he accepts deposits and lends it to needy people or units.
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Banker acts as an agent in borrower of debts and a surveryor of credit. According to American definition a banker is a dealer in credit. When a person uses funds of others for giving credit he is known as a banker. According to Herbert Hart "A banker is one who in the ordinary course of his business honors cheque drawn upon him by persons fro and for whom he receives money on current accounts ".

Features of Banker 1. Acceptance of deposits form public 2. Profitable employment of funds so collected 3. Obligation to repay deposits on demand 4. Lending of money 5. Banking as a main business

Functions of Banker 1. Primary function 2. Secondary Function

1. Primary function: a) b) c) Acceptance of deposits Granting or sanction of advance Discounting bill of exchange

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2. Secondary functions: A) Agency service: a) Collection of income on behalf of customer b) Making payment on behalf of customer c) Purchasing and sell of security on behalf of customer d) Acting as a trustee and executor B) General utility service: a) Provision of deposit vault arrangement b) Issue of letter of credit, travelers cheque, etc. c) Underwriting of loans raised by government. d) Remittance of funds

Classification of Banks: On the basis of functions, Banks can be classified in to 6 types.

1) Commercial Bank: Commercial bank usually requires deposits for a short period and supplies short term credit facilities to trade and commerce. Commercial banks are oldest institutions having wide network of branches. One of commercial bank in our country Canara having 10000 branches all over India.

2. Industrial Bank: Industrial Bank is to meet long term credit facilities to needs of industries which provide credit to Industrial undertakings.
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3. Agricultural banks; Credit need of agriculturist is of 3 types. They are short, medium and long-term short term credit is required for the purchase of manure, seeds, etc. medium term is provided for purchase of agricultural implements and cattles long term for making permanent improvement of land.

4) Central Bank It is the top for banking institution operating in the country. It does not complete with other banks for profit but acts as the bankers bank and lender of last resort

5) Savings Bank: Saving banks encourages the habit of saving among the people of community under such type of banking deposits received are not withdrawal on demand. Beyond a certain limit. Any withdrawal beyond a certain limit requires a prior notice.

6) Exchange banks: Those banks finance mainly the foreign exchange business that is the export and import trade of a country as they mainly finance foreign exchange business. They are called 'exchange banks.

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RESEARCH DESIGN

INTRODUCTION TO PROJECT REPORT The project report entitled "LENDING PATTERNS WITH SPECIAL REFERENCE TO CANARA BANK BHADRAVATHI

BRANCH has been brought out in know performance of branch and customer opinion about service provided by branch.

STATEMENT OF PROBLEM: To study the problems related to lending patterns of canara bank.

OBJECTIVES: 1. 2. 3. 4. To make detailed study of "credit facilities" provided by bank. To know utilization of service of bank by customers. To study problems connected with granting loans to customers. To know opinion of customer regarding loans provided by bank. AREA OF STUDY: Study of project is restricted to only Bhadravati. METHODOLOGY: Primary data has been collected through questionnaire and through discussion with bank manager and staff. Secondary data has been collected through pamphlets, journals, and internet and from reference books.

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RESEARCH INSTRUMENT: Questionnaire LIMITS OF PROJECT REPORT: 1. Customer will not give correct opinion about the survey. 2. Accuracy of this project is limited because of factors like limitation of time.

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INDUSTRY PROFILE
HISTORY OF BANKING IN INDIA The development of modern banking in India begins with banking activities undertaken by English agency house at Calcutta and Bombay which combined banking with trading. It appears that the earliest bank on western line was established at Madras as early as 1683. The first joint stock bank was the bank of Hindustan established at Calcutta in 1770. At that time another banks were established. Bank of Bombay in 1840. Bank of madras 1843 and Bank of Bengal. All these 3 banks were amalgamated in1921 and was named as 'The imperial bank of India and again in 1955 this bank was taken over by government and was renamed as state bank of India.

In 1889 other commercial banks were established. It was the first pure Indian joint stock bank it was followed by Punjab national bank in 1894 and so on.

Growth of banks was very slow in the beginning. In 1913 and 1922 108 banks were failed and In 1922 and 1936 373 banks failed, only after Independence banking system made a rapid progress now Indian banking system is one of the developed banking systems of the world.

Indian Banking regulation act 1949: Sect 5 (c) of the banking regulation act of 1949 defines the term 'Banking company' as "any company which transacts the business of banking in India".
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Sec 5 (1) (b) of the same act defines the term "Banking" as Accepting from the purposes of lending or investment of deposits of money from the public repayable on demand or otherwise and withdrawal by cheque, draft order or otherwise. INDIAN BANKING HISTORY:Banking is also of very ancient origin in India. It is stated by authoritative writers that as early as the vedic period, records of taking and giving of credits are to be found. All throughout the period of Indian history, money-lenders who were called either bankers or seths, or shorffs, are recorded to have existed, and are stated to have carried on a roaring business in money-lending and banking. The great Hindu lawgiver, Manoo, who is said to have flourished about the second or third century A D also devotes a section of his work to the question of deposits and pledges. By the 12 th century, the Jain bankers are recorded in history to have flourished and the famous Dilwara and Mount Abu, is Said to have been build by the two join bankers some where between 1197 and 1247 AD. The banking system in India and the outcome of innovation considerably influenced by historical growth and past transaction. The evolution and expansion of banking system consists of well defined places of banking developed in India. Originally, India has Indigenous banking system. The impact of west resulted in the modernization of the banking system in India, as joint stock ventures, the development of joint stock banking was helped through statutes. Culminated in social control and nationalization of banks which were considered very big. The need for a ventral bank in India as felt as early as in 1873, hen Warren Hastings had recommended the establishment of general band of
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Bengal. In 1921, the imperial bank of India as setup by amalgamating three presidency banks. Though primarily a commercial bank, it performed certain central banking functions, such as acting as a banker of government, the issue of notes, however continued to be the direct responsibility of the central Government. In 1926, the Royal Commission of India currency and finance suggested the establishment of Reserve Bank of India to act as a central bank. In January 1927, a bill giving effect to his recommendation as introduced in the legislative assembly. The issue assumed importance again in 133 with the publication of the white pages on Indian constitutional reforms. Again with the recommendation of the central banking enquiry committee a fresh bill called Reserve Bank f India bill as introduced on 8 th September 1933, the bill as duly passed and become an act on 6th March 1934 called as Reserve Bank of India Act. The bank was formally inaugurated on 1st April 19 Development of modern banking: For the history of modern Banking in India a reference to the English agency is the days of East India co. would be necessary. The bank of Hindustan was the first joint stock bank to be established in India under European management. But soon it failed, in the first half of 19 th century. The east India co. established 3 banks. Bank of Bengal in 1809. Bank of Bombay in 1840 and Bank of Madras in 1843. These banks were known as presidency banks. These 3 banks were amalgamated in 27 th Jan 21921 to form imperial bank of India. The aid commercial bank was perhaps the first purely joint stock bank to be established in 1889. Walter the Punjab National Bank. The people's banks were established.
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The bank of India was started in 1906. The Indian bank was started in 1906. The Indian bank in 1907. The bank of Baroda in 1908 and the central bank of India in1911.

Significant Milestones 1st July 1906 Canara Hindu Permanent Fund Hindu formally registered with a capital of 2000 shares of Rs. 50/- each, with 4 employees. 1910 1969 1976 1983 1984 1985 1987 1989 1989-90 1992-93 Canara Hindu Permanent Fund renamed as Canara limited 14 major banks in the country, including Canara bank, nationalized on July 19 1000th branch inaugurated overseas branch at London inaugurated Canara (the banks credit card) launched. Merger with the Lakshmi Commercial Bank Limited. Commissioning of Indo Hong Kong International Finance limited Canara bank Mutual Fund and Confine homes launched Canara bank venture capital fund started Canara bank factor limited, the factoring subsidiary launched Became the first bank to articulate and adopt the cherctive principles of Good Banking 1995-96 Became the first bank to be conferred with 180 9002 certification for one of its branches in Bangalore 2001-02 2002-04 Mar den IPO of the bank launched internet and mobile banking services
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2001-02

Opened a Mahila Banking Branch first of its kind at Bangalore, for catering exclusively to the financial

requirements of women client. 2004-05 2005-06 100% branch computerization Entered 100th year in banking service launched core banking solution in selecting branches number of position in aggregate business among Nationalized Banks. 2007-08 Retained Number one position in aggregate business among nationalized banks. Signed Moves for commissioning two JVs in Insurance and Asset. Management with international major viz HSBC (Asia Pacific) holding and Roboecco Group. N.V respectively 2008-09 Launching of new Brand Identity Incorporation of insurance and Asset Mqt JVs Launching of online Trading portal Launching of a call center Switch over to based aII new capital adequacy Frame work 2009-10 The bank crossed the coveted Rs. 3 lakh Crore in aggregate business The banks 3rd foreign branch at Shangha commissioned

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COMPANY PROFILE
History The bank founded as Canara Bank Hindu Permanent Fund in 1906, by Late Sri. Ammembal Subbo Rao Pai, a Philanthropist, this small seed blossomed into a limited company as Canara Bank Hindu in 1910 and became Canara Bank in 1969 after nationalization. A good bank is not only the financial hear of the community, but also one with an obligation of helping in every possible manner to improve the economic conditions of the common people A Subba Rao Pai. VISION AND MISSION: VISION: To emerge as a best practices bank by pursuing global benchmarks in profitability, operational efficiency,asset quality,risk management and expanding global reach. MISSION: To provide quality banking services with enhanced customer

orientation,higher value creation for stakeholders and to continue as a responsive corporate social citizen by effectively blending commercial pursuits with social banking.

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BHADRAVATI BRANCH A PROFILE Now a days bank play an important role in the economic system of the country. In countries like Indias, banking system has to be encouraged in every rural areas, after the independence of our nation the leaders are taking more prominence to improve the economic progress of the people. This gave rise to birth of banks. In the middle of 19th century there were many banks started in every part of the nation. Among them some were nationalized and some were nonnationalized bank. Canara bank is also one of which has its head office at Bangalore.

To popularize the banking system and to provide more facilities to rural people Canara bank has started its branches all over India. In Bhadravathi town Canara bank has one branch. The branch situated in a middle of the area. . Since that time it was to rendering different types of services, In the beginning it was running in loss for some years. Because it did not provide so many schemes and service which were available in main branch. At that time these branch not have sufficient staff member. Then it had 3-4 members. Later it increase and now it reached total 15-20 members.

To co-ordinate better relationship with its account holder this branch has organized several programmes to customer one of them is Lakshmi Pooja and Customer meet which was celebrated in different way. This type of programmes is found in bhadravthi Branch and it also conduct many computations and distribute prize for winners.
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The branch is providing safe deposit locker facility to its customer form which customers can safeguard their document Jewellary and other valuable. Houses branch is in the residential area there is too much demand for lockers because of this now a days facility has become scare.

In the present situation it is helping many people by giving loans and providing some special facilities and their by trying to level best satisfy its customers. All that it required in the best support and encouragement from its customers. Founding principles 1. To remove superstition and ignorance 2. To spread education among all to sub serve the first principle. 3. To include inculcated the habit of thrift and savings. 4. To transform the financial institution not only as the financial hear of the community but the social hear as well. 5. To assist the needy 6. To work with sense of service and dedication 7. To develop a concern for fellow human being and sensatory to the surrounding with a view to make charges remove hardships and sufferings. Small and Medium Enterprises (SME) The banks lending to SME units increased substantially from 14245 crores to 18600 in 2008-09 and 18600 crores to 23823 crores in 2008-2009 with a view to enlarge the coverage and cater to the specific needs of SME sector.

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Priority Sector Others: The outstanding under their sector stood at Rs 37844 crores to Rs. 43203 crores in 2008-09 and Rs. 43203 crores to Rs. 48763 crores in 200910 and banks extended loan from year to year for non-resident deposits. It was 13,606 crores in 2007-08 and 12,874 crore in 2008-09 and 14,043 crores in 2009-10.

Differential Rate Interest Scheme: Under this scheme, the banks has extended financial assistance to beneficiaries amounting 65 crores in 2007-08, 40 crores in 2008-09, and 48 crores in 2009-10, The yield on the investment has increased from 12% to 12.5% investment have been market to the extent of 75% as against the minimum requirement of 60% Agricultural Finance: The total agricultural advance of the work bank increased from Rs 9404 crore to 11,443 crore in 2008-09 and 14,704 crore in 2009-10. constitution 18% of the net bank credit as against 16% at the end of march 2008-09 and investment on agriculture is RS. 15521 crore in 2007-08 and Rs. 17996 crore in 2008-09 and 20144 crore in 2009-10

Credit expansion: The banks total advance increased to Rs 10,7238 crore at the end of the March 2010-11 from Rs 98506 crore at the end of March 2009-10 and advance increased to Rs 13,8219 crores at end of March 2010-11 and growth rate 24.02% compared to 28.86% growth recorded during 2009-10 and

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28.89% at growth recorded during 2009-10, the credit deposited rate at end of March 2009 was 69.18%, 2010 was 69.6%, 2011 was 73.96%.

Investment : The level of investment in govt. securities. Other approved securities and other securities increased by 2013 crores during the year and touched Rs 15467 crore. The total income from investment for current year Rs 1948 1.53 crore.

Deposit Growth: The aggregate deposit of bank increased to Rs 154072 crore at end of March 2008-09 from Rs 142381 crore as at the end of March 2007-08 and increased to Rs. 186893 crore in 2009-10. The growth rate of 8.86%

during 2008-09 was lower than growth rate of 21.90% in previous year and 21.30% in 2009-10. during the year the bank consciously brought down the high cost of deposit level in order to reduce the cost of deposit and this resulted in lower growth rate.

Profit
The operating profit increased during year 2008-09 Rs2912 crore to 2009-10 Rs 2959 crore and Rs 3964 crore in 2010-11. The net profit increased during year 2008-09 Rs 1421 crore to 2009-10 Rs 1565 crore and Rs2072 crore in 2010-11. Return on assets improved from 0.98% in 2008-09 to 0.92% in 2009-10 to 1.09% in 2010-11. Earnings per share was 34.65 and increased to 38.17 in 2009-10 and increased to 50.55 in 2010-11. Income The total income of the bank came to Rs12816 crore in 2008-09 Rs 16414 crore in 2009-10 and rs 19430 crore in 2010-11 and growth rate 28%
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in 2009-10 and 18% in 2010-11 interest income. To Rs 3324.01 in 2008-09, Rs 3817-35 in 2009-10 and Rs 4100.78 crore in 2010-11. Other income increased by 1450.95 in 2008-09, Rs 2212.87 in 2009-10 and Rs 2311.21 crore in 2010-11. Total income as against 18% in the previous year. Expenses The total expenditure increased from 9903 crore in 2008-09 to 13434 crore in 2008-09 Rs. 15467 crore in 2009-10 and 17476 crore in 20102011.

HIRERARCHY OF ORGANIZATION OF BANK (BRANCH LEVEL)

BRANCH MANAGER

DEPUTY MANAGER

ASSIST MANGER

SPECIAL ASST

AWARD STAFF

SUB STAFF

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LENDING PATTERNS
Government sponsored schemes The Government of India has also sponsored various loan schemes with a view to help poor people for rural department etc. These schemes are offered through many financial institutions, commercial banks of the country to play major role in this regard. Under this scheme, every bank branches will be given an area which it has to provide financial assistance through various schemes for that area which is known as service area approach. The various schemes sponsored by Govt. are. Canara Bank is the front-runner in implementing various Government Sponsored Schemes aimed to uplift poor, educated un-employed / underemployed people in rural / semi-urban / urban areas by providing financial assistance to set up self-employment ventures with the help of various government authorities / agencies.

The following are the prominent schemes: Swarna Jayanthi Shahari Rozgar Yojana Swarna jayanthi Gram Swarozgar Yojana

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A. Swarna Jayanthi Shahari Rozgar Yojana (SJSRY)

Purpose

Eligibility

Margin Quantum of Loan Security Activities

Assistance to individuals under Urban Self Employment Programme (USEP) for setting up of gainful self-employment ventures & Development of Women & Children in Urban Areas (DWCUA). BPL Applicants residing in urban/semi-urban towns for at least 3 years. Any bankable project/activity involving a project cost of upto Rs 50000 for individuals. For DWCUA no ceiling on project cost. 5% of the project cost 95% of project cost

Hypothecation/Mortgage/Pledge of assets created out of loan Any bankable activity / project which can be undertaken at towns. Project Rs.50,000/- under USEP. In respect of DWCUA, no ceiling on Cost project cost. Subsidy Individuals - 15% of the Project cost (Max-Rs. 7500)DWCUA group - 50% of the Project cost (Max-Rs.1.25lakh) Repayment Within 3 to 7 years Sponsoring Urban Local Bodies Authority

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B. Swarnajayanthi Gram Swarozgar Yojana (SGSY) Purpose Eligibility For setting up self employment ventures in rural areas All families in rural areas who find a plakhe in the list of below poverty line identified through BPL census duly approved by Gram Sabha are eligible for assistance under the scheme. Loans upto Rs.50,000/- for individuals & Loans upto Rs. 6.25 lakh for Groups - No margin Loans above Rs.50,000/- for individuals - 20% of the project cost minus the actual subsidy available Loans above Rs. 6.25 lakhs for Groups - 25% of project cost minus actual subsidy Loans upto Rs. 50000 for individuals & loans upto Rs. 5 lakh for Groups - Hypothecation of assets created out of loan / mortgage of landed property / third party guarantee Above Rs.50,000/- in case of individuals and Rs.5 lakhs in case of SHGs - Hypothecation of assets created out of loan & mortgage of landed property/guarantee of third party. Key activities identified by Gram Sabha including farm sector Unit cost as fixed by District SGSY Committee 30% of the project cost with a ceiling of Rs.7500/-. For SC/ST 50% of the project cost with a ceiling of Rs.10000. For groups, 50% of the project cost subject to ceiling of Rs.1.25 lakhs. Within 5 to 9 Years Block Development Officer

Margin

Security

Activities Project Cost: Subsidy

Repayment Sponsoring Authority

OTHER TYPES OF LOANS AND ADVANCE 1. 2. 3. 4. Cash credit Over draft Demand loan Term loan

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1. Cash credit: Cash credit is favourite mode of borrowing by traders, industries, agriculturists etc for meeting their working capital requirements. It is a separate at by itself and doesn't require the opinion of a current account, It is operated like an overdraft account. Depending on needs of the business the borrowers can draw cash credit at different types and as and when he gets funds in hand. He may deposit them in his Alc. The debit balance should not exceed agreed limit. Interest is charged on the daily balance in the account. The securities usually accepted in cash credit. A/c or commercial commodities, stock in trade and machinery's. The cash credit arrangement is the past popular method of borrowing in India above 70% of the total bank credit is in the form of cash credit

2. Overdraft: An old implies the existence of current AIc an old is generally allowed by a prior arrangements with the bank. The latter agreeing to allow the customer to overdraw the A/c i.e. draw in excess of his credit balance up to a particular limit. The balances in AIc fluctuate according to amount of debts and credits. A cheque book is issued to the customer and cheques drawn by him up to an agreed limit at honored by bank unlike loans, as many drawings and repayments are permitted as the customer. A borrower whose requirements various from time to time are in a position to adjust the operation on the accounts accordingly and may not withdraw the entire amount at one time. The securities usually accepted against an overdraft are shares and government promissory notes. Some times old are granted against fixed deposits and LI policies.

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Types of overdraft 1. Cash key 2. ATM facility 3. TOD Cash Key 1.Cash key: It is one of the old facility carry a key to a immediate cash requirement An individual will be granted 75% of loan against his deposit

2. Automated Teller Machine: This is another type of overdraft. Here banks will issue credit card to customer, credit card holder need not carry cash 3. Temporary overdraft: Current A/c holders are permitted to overdraw their A/c by small amount. This facility is given only to reliable customers. But amount should be repaid within short period. 3. Demand Loan: Demand Loan is an advance for a fixed amount repayable on demand. In case of demand loans interest is applied quarterly. The loan is granted after obtaining demand promissory note. The demand promissory note has government 3 years time. After this period loan is considered to be barred one. Demand loan is sanctioned against banks own deposits i.e. FD, RD, JD etc. The amount of demand loan IS Granted will be 75% of the deposit amount and Interest is 2.5% above the interest applicable to fixed deposits.

Types of demand loan: a. b. Gold loan (Already explained) Clean demand loan

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Clean demand loan: This is another type of demand loan, here loan is granted without any security. Here loan is granted by personal guarantee. This is suitable for secured persons and pensioners who had their A/c with the bank

4. Term loan: When a loan is sanctioned to borrower. The entire amount of loan is debited to a loan. AIC of the borrower, and it is paid to borrower in one lump sum. A loan is generally granted for a short period of one year or less than one year. Some times it may be more than one year such a loan is called term loan. Here there will be three types of loans, i.e. Medium term Short term, and Long term loan

A loan is granted either against collateral securities or against personal security of the borrower. Interest is charged on whole amount of loan sanctioned. Irrespective of amount actually withdrawn by borrower rate of Interest charged is lower than overdraft and cash credit. Types of Schemes Under Term Loans 1. Education loan 2. Housing loan 3. Happy home scheme 4. Abilasha scheme This scheme is helpful to rural people for the purpose of consumer durables

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Agriculture : Our economy is agro based. The country greatly depends upon the contribution from sector both in terms of output as well as potential source of employment India is a nation of village 95% of our village population is depending on agriculture for their bread. Agriculture is the main occupation for Indians formers in India are poor. They are in need of financial assistance commercial banks provides finance to them. TYPES OF AGRICULTURAL FINANCE According to financial requirement of Indian formers loan can be classified into 3 types. 1. Short term credit 2. Medium term credit 3. Long term credit Short term credit for a period of 12 to 15 months it is need for purchase of seeds, fertilizers and payment of wages to form workers and for domestic expenses, medium term credit for a period of 15 months to 5 years. It is needed for the purpose of buying cattle and agricultural implements construction of bunds and embankments on agricultural lands and for making other miner improvements on lands.

Long term credit for a period of 5 to 20 years is needed for making permanent improvements in lands. Such as digging of wells, installation of pump sets, purchase of farm machines, acquisition of additional lands and also for the repayment of overdraft debts.

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FINANCE IN COMMERCIAL BANKS In the past commercial bank played an insignificant role in agricultural finance. They met just 5.5% of credit requirements of the agriculturists. However after the nationalization of major common banks country. The commercial banks have been participating Agricultural finance to a grater extent. They are opened thousands of branches in rural areas and through their rural branches, they are financed a considerable portion of credit needs of the farmers Today they finance about 39% of the total requirements of the rural people com banks participate in agricultural finance in many ways They are.

1.

They provide direct finance to farmers; they prove, short, medium and long term finance to them.

2.

They have helped in the organization of farmers service societies is a few selected centers.

3.

They have also introduced a village adoption schemes under which they have adopted thousands of village and provide finance

4. 5.

They are also participating is lead bank scheme They also providing indirect finance to farmers

AGRICULTURAL CREDIT OFFERED BY BANKS: 1. 2. 3. Period wise classification Purpose wise classification Nature wise classification

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1. PERIOD WISE CLASSIFICATION a. Short term credit b. Medium term credit c. Long term credit -12 to 15 months -15 months to 5 year - 5 to 15 years

II. PURPOSE WISE CLASSIFICATION: a. Short term loan: Purchase of fertilizers, such verticals, hybrid seeds, plough etc.

b. Medium term loan: Purpose of installation of tube wells. It purchase of pump sets, reclamation of land wells construction etc.

c. Long term loan: Purchase of land digging wells, installation of pump sets, machineries etc.

Agricultural finance of Banks (in crores) Year 2008-09 2009-10 2010-11 Amount 15521 17996 20144

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AGRICULTURE AND RURAL CREDIT SCHEMES

A. Kisan Credit Card Canara Bank is the pioneer in implementing Credit Card Scheme for farmers. Purpose For meeting the cultivation needs of farmers and other short term requirements including those of subsidiary / allied activities and consumption needs. Individual farmers / joint borrowers / partnership firms/ private & public Ltd. companies who are owner cultivators / engaged in allied / subsidiary activities. Farmers who are cultivating authorized leased lands are also eligible. The farmer should not be a defaulter of any Financial Institution.

Eligibility

B. Loans for Agri clinics / Agri business Centres For Strengthening Transfer of Technology and Extension Services in field of Agriculture Purpose For providing expert services and advice to farmers on cropping practices, technology dissemination, crop protection from pests and diseases, market trends and prices of various crops in the market, clinical services for animal health. Graduates in Agriculture / Horticulture / Animal Husbandry / Forestry / Dairy / Veterinary / Poultry Farming / PiscicultureIndividuals / Joint / Firms / limited companies. For individuals : Rs.10 lakhs For groups / partnership firms : Rs.50 lakhs

Eligibility

Limit

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C. Minor Irrigation / Pump set Loans Purpose For purchase of electrical motors, oil engines, submersible irrigation pumpsets, for energisation of agricultural pumpsets, pipelines including installation charges, installing generator sets, solar pumpsets, installation of drip ./ sprinkler irrigation systems, fertilizer mixers. Owner cultivators with minimum 2 acres of land. Loans can be considered for less than 2 acres area provided, viability of the project is ensured.

Eligibility

D. Farm Machinery Loans For Strengthening Transfer of Technology and Extension Services in field of Agriculture Purpose For purchase of tractors, power tillers, trailers, comine harvester, grain threshers, sprayers, dusters, ploughs, drills, mechanical wereders or any other modern agricultural machinery. Farmers who satisfy the Bank's norms.

Eligibility

E. Farm Development Loans Purpose For digging / deepening of wells, construction of tanks, ponds, drilling of bore wells, soil and water conservation watershed development bundling land reclamation, leveling of land, terracing, conversion of dry land into wet, irrigable lands, fencing, construction of farm houses and other allied activities. Farmer should be owner of the land

Eligibility

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F. Vehicle Loan for Agriculturists Purpose For purchase of brand new vehicles such as bicycles, mopeds, two wheeler / three wheeler carriages, jeeps, vans and other light motor vehicles for supervising agricultural operation / management of farm / estate and for transportation of agricultural produce / inputs, vehicles may also be considered. Purchase of heavy vehicles such as lorries for big farmers owning at least 15 acres of perennially irrigated land. Agriculurist cultivating his own land or engaged in allied activities such as dairy, poultry, sericulture, fish farming, etc.

Eligibility

G. Loan for Plantation Crops Purpose For establishment of estates, clearing of jungle, conversion of barren land into cultivable land, purchase of planting material, rejuvenation / replanting. Owners of the land who have experience / knowledge in the proposed activity.

Eligibility

H. Kisan Suvidha Purpose For meeting the comprehensive credit needs of farmers. Working capital requirements: for crop cultivation expenses, working capital requirements for allied activities, maintenance of farm machinery/ equipments, non-farm sector activities and consumption needs. Term loans requirements like purchase of agricultural implements, land development, purchase of bullocks and carts, purchase of farm machinery, minor irrigation. Agriculturists can avail finance for working capital requirements either under KCCS (Kisan credit Card Scheme) or under Kisan Suvidha scheme and not under both the schemes.

Eligibility

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I. Canara Kisan OD Purpose To provide a hassle-free overdraft facility for working capital expenses of agriculturists to be incurred for allied activities, repairs and replakhements of farm machinery, working capital requirements or/and for non-farm sector activities and consumption needs, subject to ceiling for each type of expense. The account can also be operated by ATM card (if facility is available in the branch) or cheque leaves. Agriculturists having satisfactory repayment record for the past 1 year. The Scheme is operational only in select branches of the Bank.

Eligibility

J. General Credit Card Scheme (GCCS) Objective General Credit Card Scheme has been introduced as an important measure in the area of Financial Inclusion. To provide hassle free credit to Rural and Semi-urban households without insistence on security, purpose or end use of the credit. Loan can be sanctioned for any general purpose including that of consumption. All Rural / Semi-urban households are eligible irrespective of their activity, whether agricultural or non agricultural and income level. Loan quantum shall be 50 % of the net annual income of the entire household. Maximum of Rs. 25000/-. No margin shall be insisted Limit extended is of overdraft nature tenable for three years No security is insisted. No co-obligation / third party guarantee

Purpose Eligibility Norms Loan Quantum Margin Tenability Security

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K. Krishi Mitra Card Scheme Objective To provide easy credit to Individual Tenant Farmers, Oral Lessees, Share Croppers and farmers cultivating lands without proper records. Cultivation of Crops Maintenance of animals and farm machinery Repairs and replakhements of machineries Replakhement of animals Maximum of Rs. 50,000/- subject to Scale of Finance and a maximum of 50% of the value of the produce. Extended either as an operative limit with a tenability of 3 years (subject to annual review) or as a single transaction limit, repayable in 5 years in quarterly / half yearly / yearly installments. Hypothecation of Crops.

Purpose

Loan Quantum Tenability

Security

L. Financing Joint Liability Groups of Tenant Farmers Objective Purpose Loan Quantum Repayment General Credit Card Scheme has been introduced as an important measure in the area of Financial Inclusion. Cultivation of Crops based on the details of the crops raised by the JLG members Maximum of Rs. 50,000/- per farmer and Rs. 5,00,000/- per group. Linked to marketing of crops - not to exceed 12 months for short duration crops and 18 months for long duration crops.

M. Kisan Tatkal (only in select states) Objective Purpose Loan Quantum Repayment Security To provide credit for meeting the post harvest expenses of the farmers who have availed KCCS Loans To meet the expenditure towards storing, processing, treatment of food grains, godown charges, etc Minimum of Rs. 1,000/Maximum of Rs. 50,000/- but not to exceed 50% of KCCS Limit / 25% of annual income In 3-5 years in half yearly / annual installments. Collateral of Securities extended to KCCS Loans.

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CANARA BANK

N. Scheme for Redemption of Debts of Farmers from Non-Institutional Sources Objective Purpose Loan Quantum Repayment Security To provide relief to farmers and remove the debt burden from non-institutional sources. To prepay the debts availed by the farmer from non institutional sources Maximum of Rs. 50,000/- subject to 150% of the Gross Annual Income Within 5 years in quarterly / half yearly / yearly installments. Mortgage of Property, if the cumulative loans exceed Rs. 65,000/-

O. Gold Loans for Agricultural Purposes Objective Purpose Loan Quantum Repayment Security To provide loans to farmers for various agricultural purposes against the pledge of gold Jewelleries To meet all farm requirement of the farmers Maximum of Rs. 3,00,000/- subject to 80% of the appraised value or per gram limit specified from time to time. Within 12 months Pledge fo gold Jewelleries

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CANARA BANK

EDUCATION LOAN AND OTHER PRIORITY SECTOR LOANS A. Loans for Students Purpose: Payment of course fees.Purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tours, passage expenses (for studies abroad) Studies in India: Graduation, Post-graduation including technical / professional courses with employment potential conducted by colleges / Universities approved by UGC / Govt./AICTE/Department of Electronics / IMC, autonomous institutions like IIT,IIM etc. Job oriented, technical / professional courses- (graduation / post graduation Need based finance For studies in India : Max. Rs.10.00 lakhs For studies in abroad : Max. Rs.20.00 lakhs Upto to Rs.4.00 lakhs Nil Above Rs.4.00 lakhs for studies in India 5% studies abroad : 15% Loan is given jointly to the student and parent /guardian Assignment of future income of the student Upto Rs.4.00 lakhs- No security Above Rs.4.00 lakhs upto Rs. 7.50 lakhs Satisfactory third party guarantee (Note: If the proposed borrower prefers to offer collateral security of tangible assets (moveable or immoveable) instead of bringing collateral securities in the form of third party guarantee, the same may be accepted, at his request, provided the securities with stipulated margin covers 100% of the loan amount). Above Rs. 7.50 lakhs: Collateral security equal to 100% of the loan amount. Commences two years after completion of the course or six months after getting employment, whichever is earlier. Loan with interest is repayable in equated monthly instalments within 5 to 7 years. Credit Delivery Loan can be availed from the branch nearest to the plakhe of permanent residence of the parent / guardian.
33

Eligible Courses :

Studies abroad: Quantum of Finance: Margin

Security:

Repayment

CANARA BANK

B. Laghu Udyami Credit Card Scheme(LUCC) Objective LUCC Scheme is devised to provide hassle free financial support to small business units, retail traders, artisans, village industries, SSIs and tiny units, P & SE and small entrepreneurs. Purpose To meet Working capital requirement of small business units, retail traders, artisans, village industries, SSIs. Eligibility All existing small borrowers of above mentioned categories enjoying aggregate loan / limit of upto Rs 10 lakhs are eligible Borrowers should have satisfactory dealings with the bank for atleast for the last 3 years.borrowers with continuous satisfactory past dealings for a minimum period of 3 years but not having any liability right now can also be issued the card.

C. Loan for Retail Traders Purpose Eligibility For meeting the working capital/term-loan requirements. Retail Traders dealing in essential commodities (fair price shops), consumer co-operative stores and private retail traders with credit limit not exceeding Rs. 20 lakhs.

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CANARA BANK

D. Loan for Solar Water Heating Systems Purpose Eligibility For meeting the working capital requirements Individuals, Institutions, Associations, Small Business establishments, Industrial establishments, Hospitals, Hotels, Hatcheries, SMEs etc.. Salaried individuals should have minimum monthly net take home salary of 25% of their gross salary OR Rs. 2000/- (after meeting the loan instalment) whichever is more. Professionals and other non-salaried class should have a minimum net yearly income of Rs. 50000/-.

E. Direct Financing to Self Help Groups Purpose -To build mutual trust and confidence betweren the bankers and rural poor through formation of Self Help Groups - To encourage banking activity both in thrift and credit operations. - Credit Assistance to the Group on the extent of Savings mobilised, which varies from 1:1 to 1:4.

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CANARA BANK

LEGAL ASPECTS OF ADVANCES ADVANCES TO COMPANIES: 1) The memorandum of the company shows the registered office of the company. The objective etc, which the bank is presumed to be aware of before dealing with the company 2) Articles of association of the company shows the internal management of the company. The composition of capital, drawing powers, and the administrative heads of the company etc. 3) Unless a certificate of commencement of business is issued a public It. Company cannot start working. Banks shall ensure this. 4) Resolutions a company being a legal entity. Separate form the members (share holder) who constitute its functions through resolutions passed according to an articles of association. 5) Only those persons officials of the company who are duly authorized either by articles of association or special ordinary resolutions shall execute the documents the liability of the share holders is usually limited. 6) Before financing the liquidity rate capital advances ratio; fund flow statements, balance sheets for a period of time etc, are considered more particularly because the liability of the share holders is usually limited 7) Any transaction ultra wires the memorandum of association is valid and un-enforceable 8) Under section 100 of companies act, special resolution as per articles of association is required for reduction of share capital and the same shall be confirmed by the board
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CANARA BANK

9)

While financing the bank should obtain the fullest of correct documents duly filled up, duly stamped with seal, duly executed and delivered (sec 48)

10)

The charge on the asses of the company shall be registered with register of companies failure to do so within 30 days, (sec125) renders the charge void as against liquidator or other registered creditors. The delay can be condoned by the registrar companies

ADVANCES TO FIRMS: 1) Partnership deed en-unciate the relationship of partners interest and their liability to third parties. Governments In regard to signing powers Profit sharing, capital ratio whether any minor is admitted for benefits, etc have to be persued before dealing with a firm liability of partners is joint and several (sec 25) 2) The duly authorized partners shall execute the documents else, the other partners are; not liable unless it is in the ordinary course of business or duly ratified. Preferably, all partners, shall sign the papers to most effectively pledge mortgage or charge the properties of a firm. 3) Account may be operated by all or any of the partners and a clear mandate shall be filled contravention deprives the bank of its protection. 4) In the absence of any provision sin the deed, the provisions of Indian partnership act apply. 5) Registration, though not compulsory, is preferable otherwise, a firm cannot sue and dispute interest cannot be challenged in court of law. 6) Extract from the registrar of firms shows the names and addresses of all the partners and the bank shall obtain documents from all of them
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CANARA BANK

7)

Entire set of relevant documents shall be obtained signed by all our authorized partners

8)

It is to be ensured that there is not impersonation or largely, (usually, lady partners signatures on forms are obtained by male partners at their homes)

ADVANCES TO SOCIETIES: 1) An unregistered society is nothing more than a group of persons. Only a registered society attains a separate entity, then it can be used 2) Notice under section 126 of co-operative societies act 60 days is a condition precedent for filing a suit 3) The bye laws of the society have to be carefully reckoned, the constitution of the society gives the objectives. 4) If the society is affiliated to any parent body, the constitution and the sue law of the latter are very important. 5) The resolution authorizing borrowings or operations on the account shall be scrutinized and followed 6) 7) Full set of correct documents, shall be obtained Personal liability of some of the office bearers is preferred

TYPES OF SECURITIES 1) Immovable properties like house properties plots of land, lease holds are the most common 2) Amongst movable, shares insurance policies debentures, book debts, bank deposits, stock In trade etc, are a few examples. 3) Whereas, an immovable property mortgaged, the movable are pledged or hypothecated. 4) In the case of companies all are charged by way of floating charge

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CANARA BANK

MORTGAGES 1) A mortgage is the transfer of an interest in a specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan an existing or future debt, or the performance of engagement which may give rise to a pecuniary liability sec 59 TP Act 2) In a simple mortgage, possession it is not delivered by the mortgages, there is only a personal liability, failing which mortgaged can proceed, against the mortgaged property. 3) The mortgage sells his property to the mortgage in a mortgage by conditional sale subject to a condition on the failure to repay within the stipulated time, the sale becomes absolute. 4) Mortgagor delivers the possession of the mortgaged property in favor of mortgages by way of unsatisfactory mortgages The rents accruing are appropriated towards part payment of principal or interest or both. 5) In a deed of English mortgaged, the mortgagor sells the property to the mortgage, but subject to a provision that the latter will retransfer on payment. 6) In the notified towns, mortgage. Is effected by deposit of title deeds with a covering letter. The intention of the mortgagor and delivery of title deeds are important. 7) 8) Any mortgage which is not so, is an anomalous mortgage Under section 7 of TP Act any person competent to contract can transfer properly. Therefore, a minor insolvent, insane, idiot, Foreign Sovereign and Ambassador; alien enemy; felon, drunkard cannot execute a mortgage deed.

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CANARA BANK

9)

A mortgage by a company should be duly authorized by resolution according to the Articles of Association and transaction should not be ultra wires the Memorandum of Association. The charge thus created shall be registered with the Registrar of Companies.

10)

Mortgage affected by the promoters of a company before its incorporation is invalid. It cannot be ratified after incorporation because the principle was not in existence at the time of the transaction by an agent.

11)

A default, the mortgages, is entitled to file a suit for Foreclosure or a suit for sale as per the terms in the Mortgage Deed Banks being financial institutions do file only suits for sale and for money.

PLEDGE: 1. Pledge is a kind of bailment were an asset is delivered as security for the repayment of a debt 2. The possession is delivered by the borrow in favour of the Bank (e.g lock and key, Mandy type) 3. When the goods are pledged with the bank, it can sell them after giving reasonable notice to the borrower or sue for the amount and retain the pledged goods as collateral security (Section 176 Indian Contract Act) HYPOTHECATION: 1. 2. Hypothecation is an equitable charge created on the goods The actual physical possession is with the borrower, but the constructive possession is with the Bank 3. Under the hypothecation deed, the bank is entitled to take actual Possession 4. On the banker obtains actual possession he has all the rights of Pledge
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CANARA BANK

PLEDGE V/S HYPOTHECATION 1. In pledge the goods are under the lock and key of the bank, while in hypothecation the borrower has possession of the goods, till the bank regains it. 2. Actual delivery of the goods is some qua non in pledge, m hypothecation the constructive delivery is in favors of the bank 3. In both the cases, the bank has the right to sell and sue for balance or sue for money and keep the goods as collateral security. 4. In both the cases, the bank has the right to sell and sue for balance for sue for money and keep the goods as collateral security

LIEN: Banks enjoy the right of a general lien (Sec 171 Indian contract Act) until all the outstanding are cleared, the bank can retain any valuable securities, documents etc. The bank gets as right to sell them.

ASSIGNMENT Section 1390 of TP. Act the borrower can assign an LIC. Policy etc, in favors of the bank. All actionable claims can be assigned. THE RESIGNATION ACT 1. Sec. 17 of the Act, enunciates that any transaction it immovable property worth more than Rs. 100/- shall be done by way of Resisted document. 12. Sec. 49 lay down that, if the document is not registered; it shall not a. Affect any immovable property comprised therein
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CANARA BANK

b. Conform any power to adopt and c. Be received in evidence 3. Registered Documents are conclusive and take effect against unregistered documents 4. All registered documents are presumed to be duly executed

THE LIMITATION ACT 1. Limitations start running from the date the cause of action arises e,g execution of DP note. 2. While computing the period of limitation, certain period are excluded, a. Time taken for obtaining certified copies b. Time in legal proceedings (Sec 12) c. Time in pauper OP's d. Time spent in wrong courts e. Period of stay or injunction f. Time for obtaining consent/sanction of Government; and g. Period of defendants absence from India (Sec. 15) 3. Any admission of debt by borrower gives rise to fresh limitations. The admission may be by a. Part payment. b. Letter admitting the debt; and c. Filling of debtors insolvency petition incorporating banks debt in the schedule 4. Period of Limitation: a. Money suit b. Mortgage suit for Sale or foreclosure c. Suit for declaration 3 years 12 years 3 years
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CANARA BANK

d. Suit for redemption e. Suit for foreclosure

30 years 30 years

f. For possession (Adverse possession) 12 years (Art. 65) g. For execution of decree 12 years

THE INDIAN STAMP ACT 1. 2. 3. The instrument not duly stamped and inadmissible in evidence Such documents can be impounded or a penalty can be imposed In case of doubt, the collector can decide the eligible stamp duty on an instrument 4. In certain cases the officer can instead of impounding, require duly stamped receipt to the substituted thereof 5. If an instrument is not stamped but required to be stamped, it can be received in evidence on payment of penalty 6. Only non judicial stamp papers are to be used

CHARGING INTEREST The Bank cannot charge excessive, exorbitant or usurious rates of interest. The usurious loans act empowers a court to reopen the transaction and fix a reasonable rate of interest.

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CANARA BANK

ANALYSIS AND INTERPRETATION 1. Chart showing distribution of respondents on the basis of their gender.
Gender NUMBER PERCENTAGE MALE 30 60 FEMALE 20 40 TOTAL 50 100

graph showing number of respondents on basis of gender

male female

Figure 1

ANALYSIS: In the above table we can see number of male respondents is more compared to female.

INTERPRETATION: in the above table we can see that there are 30male
respondent and 20 female respondents.

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CANARA BANK

2.Table showing distribution of respondents on the basis of their age group. Age Below 20 20-40 40-60 60 & above Male 07 12 20 03 Female 01 03 03 01 Total 08 15 23 04 Percentage 16% 30% 46% 8%

Graph showing distribution of respondents on the basis of their age group

Age group

46 30 16 8

BELOW 20

20-40

40-60

60 AND ABOVE

Figure 2 ANALYSIS: From above chart we can conclude that response from age group between 40 to 60 is reasonable. INTERPRETATION: From the above chart we can say that respondent below 20 age group are 8 ,the respondent 20-40 age group are 15 respondents ,the age group of 40-60 respondents are 23 and age group of above 60 respondent are 8
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CANARA BANK

3. Table showing distribution of respondents on the basis of their Occupation. OCCUPATION Business Profession Employee Student Others Total RESPONDENTS 6 5 22 2 15 50 PERCENTAGE 12% 10% 44% 4% 30% 100%

Graph showing distribution of respondents on the basis of their Occupation

45 40 35 30 25 20 15 10 5 0 business employee profession student others

Figure 3

ANALYSIS: Majority of the respondents are employee.

INTERPRETATION: In the survey conducted 6 respondents are business, 5 profession, 22 employee, 2 student and 15 others out of 50 respondents.

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CANARA BANK

4.Table showing classification of respondents on the basis of their annual Income. ANNUAL INCOME NUMBER OF RESPONDENTS PERCENTAGE

Upto 1,00,000 1,00,000-3,00,000 3,00,000- 5,00,000 Above 5,00,000 Total

0 1 27 22 50

0% 2% 54% 44% 100%

Graph showing classification of respondents on the basis of their annual Income

60 40 20 0 0 2 54 44 Series1

Figure 4 ANALYSIS: out of 50 respondents income group between 3,00,000-5,00,000 has shown positive response . INTERPRETATION:The number of respondents of annual income between 1 lakh to 3 lakh is 1,3 lakh to 5 lakh is27, above 5 lakh is 22 respondents.

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CANARA BANK

5.Table showing different types of deposits account of respondents: NUMBER OF RESPONDENTS PERCENTAGE

S/B ACCOUNT CURRENT ACCOUNT TERM DEPOSIT TOTAL .

33 10 7 50

66% 20% 14% 100%

Graph showing different types of deposits account of respondents

savings account current account term deposit

Figure 5 ANALYSIS: majority of the respondents have savings account INTERPRETATION: From the above chart we can conclude that 33 people have savings account and that is majority among 50 respondents and 10 people have current account and 7 people have term deposit

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CANARA BANK

6.The Table showing different types of loans borrowed by the respondents. Types of Loans Cash Credit Overdraft House loan Vehicle loan Education loan Personal loan Loan against gold Mortgage loan Total Number of respondents 05 05 10 10 2 5 5 8 50 Percentage 10% 10% 20% 20% 4% 10% 10% 16% 100%

Graph showing different types of loans borrowed by the respondents

25% 20% 15% 10% 5% 0%

Figure 6 ANALYSIS:Majority of them have taken house loan and vehicle loan INTERPRETATION :from the above table we can see that out of 50 respondents 10 respondent have taken house loan,10 respondents have taken vehicles loan,8 respondents have taken mortgage loan ,and other loans are comparatively less.

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CANARA BANK

7.Table showing general opinion of the respondents towards the loan procedure. Opinion Number of respondents Percentage

Simple Not so difficult Difficult Total

23 17 10 50

46% 34% 20% 100%

. Graph showing general opinion of the respondents towards the loan procedure.

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Simple Not so difficult Difficult

Series1

Figure 7 ANALYSIS: Majority of the respondents opinioned that the procedure followed by bank is simple. INTERPRETATION: Out of 50 respondents procedure followed is simple according to 23 respondents ,not so difficult according to 17 members difficult for 10 respondents

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CANARA BANK

8. table showing how respondents came to know about the loan Number of respondents 10 15 15 10 50 Percentage 20 30 30 20 100

Advertisement Friends Relatives Others Total

Graph showing how respondents came to know about the loan

30 25 20 15 10 5 0 Advertisement Friends Relatives Others

Figure 8 Analysis-from above chart we can conclude that respondents have optioned bmore for relatives and friends. INTERPRETATION:out of 50 respondents 10 members have come to know about the loan through advertisement,15 through friends,15 through relatives and 10 from others.

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CANARA BANK

9.table showing interested offered by bank. OPINIONS Attractive Satisfactory Not-Satisfactory Reasonable Affordable Total Graph showing
30 25 20 15 10 5 0 Series1

NUMBER OF RESPONDENTS 12 12 5 15 6 50

PERCE0NTAGE 24 24 10 30 12 100%

Figure 9 ANALYSIS: From the above table we can conclude that more number of respondent says that interest offered by bank is attractive, reasonable, satisfactory and other respondent are says its unsatisfactory INTERPRETATION: From the above table out of 50 respondent 12 respondent are attractive, 12 respondent are satisfactory,5 says not satisfactory,15 respondent say its reasonable,6 are affordable.

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CANARA BANK

10.Table showing the opinion of respondents regarding new schemes or improvement of loans. OPINION Yes No Total NUMBER OF RESPONDENTS 28 22 50 PERCENTAGE 56% 44% 100%

60% 50% 40% 30% 20% 10% 0% Yes No 56% Series1 44%

ANALYSIS: The above table shows that the majority of respondents prefer new schemes or improvement of existing loans. Therefore, it is advisable for the bank to take necessary steps.

INTERPRETATION : Out of 50 respondents 28 respondents expect new schemes or improvement of existing loans,22 dont expect new schemes.

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CANARA BANK

11.The Table showing the opinion of the respondents towards the service of the bank. Opinion Excellent Good Satisfactory Not satisfactory Number of respondents 8 20 18 4 50 Percentage 16% 40% 36% 8% 100%

graph showing the opinion of the respondents towards the service of the bank.

40% 35% 30% 25% 20% 15% 10% 5% 0% Excellent Good Satisfactory Not satisfactory

Figure 11

ANALYSIS : from above table we can conclude that major response were good and satisfactory. INTERPRETATION: Service provided by bank according to 8 respondents is excellent, for 20 respondents its good, for 18 respondents its satisfactory,4 not satisfactory.

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CANARA BANK

FINDINGS, SUGGESTIONS AND CONCLUSION

Findings During the survey it has been observed that customers complied number of problems while availing service from bank. They have complained about many of problems some of them have been out lined below.

1. 2. 3.

Loan takers are more between the age group of 40-60 According to the survey most of the loan takers are employee. Majority of the People who have annual income between 3 lakh to 5 lakh have taken loan.

4. 5.

Majority of the undertaken survey have savings account. Its been found that procedure followed in sanctioning loans is simple.

6. 7. 8.

Majority of them have taken house loan and vehicle loan. Most of the respondents expect new loan scheme. People have come to know about the loan much through friends and relatives so its been found that advertisement is not so effective.

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CANARA BANK

Suggestions Following effective suggestions are given in order to help the branch in improving their customer service and their performance.

1. Rate of interest should be increased; The rate of interest charges on deposits of customers should be increased; customers are not satisfied with rate of interest on deposit. Bank should have necessary steps to increase interest. Because many middle class people when they get money. They used to keep it in bank in order go get interest. It bank does not provide high rate of interest then they will keep amount in some other banks. Banker should consider this suggestion for their improvement.

2. Guidance has to be provided Banker or staff member should provide proper guidance to customer about the banks new schemes borrowing polices lending policies. It is duty of bank to make acquaint the customer about its operations. Banker should encourage customers to get the benefit of new policies adopted by bank.

4. Encashment of cheque: Now customers are facing the problem of delay in payment of cheque. Time is very previous. Some of customer may not have sufficient time to wait for long period so delay in payment should be reduced and avoided. Quick service should be provided by ban for the reason bank may open another cash counter. Bank should adopt above suggestion to improve their customer service

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CANARA BANK

6. Loan sanctioning: If customer need the financial assistance i.e. loan from bank He can get it immediately. But he can get it from money lenders. But they charge high rate of interest. So banker has to sanction loan to customers as early as possible. It should not be delayed. So loan has to be sanction or given within short period from the date of his application for loan.

8. Interest on Loan has to be reduced: During the survey the some of customers told that the rate of interest is high. So banker should reduce the interest rate of loans sanctioned to customers and it is advised to bank to get some amount of income from other sources.

9. Effective advertisement: The banker should take necessary steps to advertise. The bank's new schemes and help customers to get their benefit it customers do not know about new schemes. These schemes will become useless schemes. So it is banker's responsibility to give information to customers or encourage them to invest fund in these schemes where customer can get maximum benefit.

10. Punctuality and co-operational of staff: Punctuality of staff should be increased staff always should be punctuality to their works. Then only it results in high profits.

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CANARA BANK

And there should be proper co-operation in customers and staff member. It helps the customers in dealing with bank. So co-operation in staff and customer is very essential management should take necessary steps for improving punctuality of staff and increasing co-operation betweren them Banker should also take necessary steps to provide other effective services which we can get in any other international banks. So that banker can attract large number of customers and can make more profit and banker should take necessary steps to provide any service to customers without delay. That means banks should provide quick services.

So it is advised to bank to get benefit from above mentioned suggestions and improve themselves to provide better service to their customers

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CANARA BANK

CONCLUSION

Banking business has been an individual part of economy in general and business particular. As a matter of fact com banking has widened its services from traditional area to a number of sophisticated areas like housing finance. Infrastructure finance, merchant banking etc. Whatever may be the area, banks can flourish only when their activities are customer oriented. In order to achieve hundred percent customer orientation. They should be aware of customer demands, likes, aspirations etc, further they should know the extent to which their points have been achieved. Therefore there should be continuous

Research programmers showing the performance to be achieved. Problem in present strategies of lending collection etc thats why the research forms the basis of development The present study deals with the activities of banks in general and activities of CANARA BANK BHADRAVATHI branch in particular. The analysis had been made in connection with the perceptions of customers who have borrowed loans from the branch. Further it shows. The problem and inconveniences faced by tem while availing of services. Suggestions have been given for improving the strategy of in connection with lending and other services. If the bank gives a positive considerations to the suggestions given in the report. I am sure it may improve its strategy

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CANARA BANK

QUESTIONNAIRE

I am KISHEN KUMAR, pursuing sixth semester BBM in PESIAMS college Shimoga, as a part my academic I am doing a project work on lending pattern of canara bank in Bhadravati. I request you to provide information for my project. I assure you that the data used only for my project work. 1. Name : .. 2. Address: . 3. Sex: Male [ [ [ ] ] ] Female 20-40 60&above [ [ [ ] ] ]

4. Age: Below 20 40-60 5. Occupation: Business Students [ [ ] ]

Employee Others

[ [

] ]

Profession [

6. Annual Income: Up to Rs. 1,00,000 [ 3,00,000-5, 00,000 [ ] ] 2,00,000 3,00,000 Above 5, 00,000 [ [ ] ]

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CANARA BANK

7. Which type of deposit youre having in CANARA BANK: S/B Account [ ] Current A/C [ ] Term Deposit [ ]

8. Which type of loan you taken from bank Cash Credit Education Agriculture loan [ [ ] ] [ Overdraft House loan [ [ ] ] ] Vehicles loan [ ] Personal loan [ ] ]

] Mortgage loan [

Loan against gold [

9. How did you came to know about the loan facility Advertisement Relatives [ [ ] ] Friends Others [ [ ] ]

10. Interest offered by bank is: Attractive [ Reasonable [ ] ] Satisfactory Affordable [ [ ] Not-Satisfactory ] [ ]

11. Procedure followed by the bank in sanctioning of loans: Simple [ ] ] Not so difficult [ ] Difficult [ ]

Time consuming [

12. What is your opinion about the service provided by the bank? Excellent Satisfactory [ [ ] ] Good Not Satisfactory [ [ ] ]

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CANARA BANK

13. Any suggestions you would like to give for improvement of credit

Date: Place: Signature

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CANARA BANK

BIBLIOGRAPHY
1. Banking Therapy and practice B.S. Raman 2. Annual report of 2011-2012 3. 4. Encyclopedia Websites

i. www.google.com ii. www.canara.com iii.money control.com

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