Project report on CREDIT MANAGEMENT Of RAJKOT NAGARIK SAHAKARI BANK LTD.

- RAJKOT

Submitted to N.R. INSTITUTE OF BUSINESS MANAGEMENT, A ME!ABA!

On ju"# $%, &''(

In p)rti)" fu"fi"" ment of *ummer tr)inin+ )* ) p)rt of *tud# In M)*ter of Bu*ine** Admini*tr)tion pro+r)mme

B# Manoj Chorada (0301 !

"RE#ACE Banks are regarded as the blood of the nations economy without them one cannot imagine economy moving. Therefore banks should be operated very efficiently, co-operative banks although a small part of whole banking system in India, but they are very important not only from economical point of view but also from social point of view as it is more concerned about common peoples welfare and development. Advance is heart and recovery is o ygen for the bank and for the bank to survive it is necessary to give advances and recover the amount at the appropriate time. Through credit management I have tried to cover the various aspects like credit appraisal, !"A management, recovery management, etc. #.g. credit management covers all the areas right form the beginning like in$uiry till the loan has been paid up. Though credit management, a very vast topic, I have tried to incorporate to the best of my capacity from all possible aspects in this pro%ect. I do hope that institution will appreciate this pro%ect.

ACHNO$LEDGEMENT %$& 'an no( d&(&r)*n& )*+, o- ho. )an/ 'o.0 -&&d o1r 2od/.3 4 Anon I believe an ocean is filled by drops and each and every drop should count, similarly I should count favor of all my helpers here but this not possible. &o forgive me for the same. 'irst of all I would like to thank Board o- D*r&'(or0. I am thankful to manager G.C.Rao+ to give me permission for the summer training. I want to e press my sincere obligation to Ko(a, S*r, K1)ar*+2ha*, Sh*+&0h2ha* Na(h.an*, H*(&0h2ha* Ra'h'hh, and all the staff members of (!&B, where I worked so long in a homely pleasant atmosphere. #specially, I would like to thank Sa+*)2ha* B+o'h and Rajn*2ha* Ra*'h1ra, my mentor who guided me in my work. I am thankful to Mr. Khand&+.a+ )principal of our college* and Mr. 5*ra+ 0*r for their guidance and Mr. N*raj A)arnan* for the arrangement of summer placement. +ast but not least my family, which is always behind me in my work for support any time.

OBJECTI6E O# ST7D8 Banking is the activity of my interest. I have seen from the annual reports of the various banks and find that most of their income is from the interest getting on the credit given so I choose and hence I studied on credit management. ,ame of statistics is always attracts me and banking is one the place where we can learn it very well. &o I have selected bank and have preferred -credit management. as topic for my pro%ect.

RESEARCH METHODOLOG8 There are many methods, which are well known today for research methodology, out of which one I have chosen is -sampling method., which is really easier, still producing accurate results. &ampling in laymens language, is nothing but selecting pockets or samples representing the whole group and analysis of these samples gives the idea about the respective groups. /n the basis of this, prediction is done and full information about group is integrated. Though this is not a first hand method, it gives sufficiently good outcomes if used carefully by e perts. It saves the time and energy. The only care should be taken, in order to have great accuracy, is selection of sample should be such that it should represent the whole group and information we get from them should be cent percent reliable. &alient features of my chosen sample The biggest co-operative bank having head office in my vicinity enables me to do my work efficiently. This is the striking feature of my sample. The e clusive schedule bank in (a%kot and hence gets priority over the others. ,enerally the new bank lacks the e perience so it is mandatory to select a sample, which has enormous e perience. (!&B has a gigantic e perience of successful 01 years, under the lights of which work becomes easier. The other enchanting point is that (!&B have ma imum number of shareholder i.e. above 2 lacs.

3/!T#!T "reface Acknowledgement /b%ective of study (esearch methodology 3ontent I!T(/453TI/! #arly history of banking /rigin of word 6bank &tatus wise bifurcation of bank Types of bank (!&B - The &mall 7ans Big Bank

"(/8#3T 7ain 'und Inflow )sources of funds* 7ain fund outflow )funds used* 7eaning of credit and credit management 'orms of credit9advances Time wise bifurcation of advances &ecurity wise bifurcation of advances "rocess of credit 3(#4IT "/+I3: ,eneral eligibility criteria for credit in (!&B Table of interest rate on various advances &crutiny of credit

Types of credit # planation of all types of credit 4ata analysis and observation and suggestion

3(#4IT A""(AI&A+ Appraisal format /bservation and suggestion

3(#4IT 7/!IT/(I!,, '/++/; 5" A!4 (#<I#; 3redit monitoring system in (!&B 'ollow up actions for credit monitoring in (!&B /bservation and suggestion

!"A 7A!A,#7#!T Identification of !on "erforming Advances Asset classification 3lassification of !on "erforming Advances "rovision for !"A 'indings )reason for !"A* &uggestions )!"A reduction techni$ues* (#3/<#(: "rocess of recovery 'inding9observation +I7ITATI/! /' &T54: BIB+I/,(A"=:

I!T(/453TI/!

#A(+: =I&T/(: /' BA!>I!, As early as 2111 B.3., the Babylonians has developed a banking system. There is evidence to show the temples of Babylon were used as banks. After a period of time, there was a spread of irreligion, which soon destroyed the public sense of security in depositing money and valuable in temples. The priests were longer acting as financial ?0 agents. The (omans did minute regulations, as to conduct private banking and to create confidence in it. +oan banks were also common in (ome. 'rom these the poor citi@ens received loans without paying interest, against security of land for A or ? years. 4uring the early periods, although private individuals mostly did the banking business, many countries established public banks either for the purpose of facilitating commerce or to serve the government. =owever, upon the revival of civili@ation, growing necessity forced the issued in the middle of the B2th century and banks were established at <enice and ,enoa. The Bank of <enice established in BB0C is supposed to be the most ancient bank. /riginally, it was not a bank in the modern sense, during simply an office for the transfer of the public debt. Again the origin of modern banking may be traced to the money dealers in 'lorence, who received money on deposit, and were lenders of money in the B? th century and also in BA?D, the business of banking was carried on by drapers of Barcelona. In India, as early as the <edic "eriod, banking, in most crude from e isted. The books of 7anu contain references regarding deposits, pledges, policy of loans, and rate of interest. True, the banking in those days largely mint money lending and they did not know the complicated mechanism of modern banking.

This is true not only in the case of India but also of other countries. Although, the business of banking is as old as authentic history, banking institutions have since than changed in character and content very much. They have developed from a few simple operation involving the satisfaction of a few individual wants to the complicated mechanism of modern banking, involving the satisfaction of capital slowly seeking employment and thus providing the very life blood of commerce. THE ORIGIN O# $ORD 9BANK: The word 6Bank itself derived from the word 6bancus or 6ban$ue that is a 'rench. There were others of the opinion that the word 6Bank is originally derived from the ,erman word 6back meaning %oint for which was Italianised into 6banco.

STAT7S $ISE BI#7RCATION O# BANKS Sc,edu"ed B)n-*. Non.Sc,edu"ed B)n-*. S'h&d1+&d Ban,0 In first schedule, ,overnment of India notifies the "rimary Banks, which are licensed and whose demand and time liability are not less than 01 crores in BDEC. ,overnment of India notifies the "rimary banks, which are licensed and whose demand and time liability are not less than B11 crores can only $ualify to be included in the second schedule since BDDA. A bank becomes scheduled when it fulfils the followingsF 6A grade rating from (BI 4emand and Time +iability over B11 3rores &atisfy the (BI guidelines related to 3(( and &+( As per the norms "riority &ector wise lending Benefits of Being a &cheduled co-operative are described belowF (BI would provide (ediscounting facility at nominal rate (BI gives remittance facility at par The demerit of being a scheduled co-operative bank is that the bank will not get 1.0G subsidy from (BI. The conferment of scheduled status on the banks has certain advantages like refinance facility, directly industrial finance from (eserve Bank of India, avail of (eserve Bank of India (emittance facility scheme, accept deposits from local bodies, $uasi-government organi@ation, religious, and charitable institutions, guarantees and che$ues issued by Banks are accepted by ,overnment 4epartments. At the same time, it casts greater responsibility on the banks in the maintenance of books of accounts and submission of returns. Non-S'h&d1+&d Ban, The banks, which are not applicable as per the criteria of &cheduled Banks, are called as a !on-scheduled Banks. These are very small banks.

T8"ES O# BANKS (egional (ural Bank !ationali@e Bank &tate Bank ,roup 3o-operative Bank "rivate Bank 'oreign Bank RESER6E BANK O# INDIA The =ilton-young commission, appointed in BD2H has recommended the necessity of centrally empowered institution to have effective control over currency and financial transaction in the country. Accordingly, the ,overnment had then passed (eserve Bank of India Act, BDA? and established the (eserve Bank of India with effect from B st April BDA0. The principal aim behind this was to organi@e proper control over the currency management in the interest of country benefits and to maintain financial stability. ;ith this, the (BI mainly looks after the following important functionsF To keep effective control over creation of credits and currency supply To control the Banking transactions of 3entral and &tate ,overnments To act as 3entral administered Authority of all other Banks in the 3ountry. To organi@e control over 'oreign 3urrency Transaction To assist for improvement in financial aspects of the country Na(*ona+*;& Ban,0 Ascheme. T)t-)" /On t,e *pot0 credit *c,emeF "urpose of this scheme is to fulfill the current re$uirement )like business, marriage, medical treatment, education*. This is given in the limit of (s.B lac against the security of immovable property. This loan is re$uired to be paid in

the monthly installments of B2 to 2?. &pecialty of the scheme is that within 2? hour you can get the loan

Sc,eme for t,e *oci)" re*pon*ibi"itie* re1uirement F This scheme covers the social responsibilities, medical treatment and other occasions. In this scheme loan is sanctioned against security of immovable property in the limit of (s.0 lac. 7a imum loan repayment period is AH months. Bui"din+ rep)irin+2reno3)tion "o)n *c,eme F (ecently bank has increased limit of loan amount from (s.C0111 to (s.211111 for the (a%kot, Ahmedabad, &urat city and for other branches to (s.B11111. 4o)n )+)in*t N.S.5. 2 6.7.P. 2 4.I.5. Po"ic# *c,eme F The loan amount is given in the form of overdraft.

PROJECT

MAIN #7ND IN#LO$ (SO7RCES O# #7NDS! /wned deposit 4eposits Borrowings /thers O8ned depo*it The owned funds consisting of paid capital of the bank, reserve fund, and other reserves. !epo*it* It is sum of current deposits, fi ed deposits, saving deposits, special saving deposits, !(I deposits, inoperative deposits, etc. It is the main 3ash Inflow for any institution. Borro8in+* The borrowed funds consisting of borrowings from other banks )as per some writer deposits of various types is also part of borrowed funds*, debentures offered to public, etc. Ot,er* Increase in current liabilities, reduction in debtors, fund from operations like net income, depreciation, and reserves, less payment to creditors, reduction in advances, reduction in inventories, reduction in cash, sold marketable securities, etc.

MAIN #7ND O7T#LO$ (#7NDS 7SED! 3(( )3ash (eserve (atio* with (eserve Bank of India &+( )&tatutory +i$uidity (atio* in (eserve Bank of India approved securities +oanable 'und /thers 5RR /5)*, Re*er3e R)tio0 8it, Re*er3e B)n- Of Indi) The capacity of credits creation of bank is depending upon their cash flow received. To restrict this credit creation, the reserve bank of India has directed their terms. In case of scheduled banks and sec.BE of banking regulation act are re$uired to maintain the cash reserve ratio IJ ?.C0G and non-scheduled bank J AG of their demand and time liability amounts separately. The scheduled banks are re$uired to deposit the cash reserve ratio amount with (eserve Bank of India while the non-scheduled banks are re$uired to maintain separate account for this. The (eserve Bank of India is also empowered to raise the cash reserve ratio up to B0G only in respect of scheduled banks. It is maintained reported to (BI every fortnight. IA1th April (BI declared new credit policy and as per that (BI reduced 3(( with 1.20G 4emand and time liabilityF Time "i)bi"it# is related with time like, fi ed deposits !em)nd "i)bi"it# is related with the demand like, 3urrent deposits, inoperative deposit, and matured fi ed deposits S4R /St)tutor# 4i1uidit# R)tio0 The cash flow for regular banking transactions mainly depends upon deposit received in the bank. The reserve bank of India there fore puts some restrictions on utili@ation of these amounts. The scheduled and non-scheduled banks are re$uired to deposit 20G amount of their demand and time liability amount in the security approved by reserve bank of India. These securities are converted into cash and therefore they are termed as 6li$uid assets and 20G amount termed as

6li$uid ratio. The reserve bank of India is empowered to raise this li$uidity ratio from 20G to ?1G. It is maintained average fortnight and reported to (BI. 4o)n)b"e Fund 3redit deposit ratio is not more than C1G. +oanable funds means amount of money, which is applicable for lending. Three main factors own fund, deposits, and borrowings decide it. Advances can never be more than loanable fund. +oanable fund is a total ofF C0G of own funds C1G of deposits B11G of borrowings Ot,er* "urchase of fi ed assets, purchase of marketable securities, addition to advances, addition to inventories, payment to creditors, payment of dividend, etc..

M&an*n< o- CREDIT The word 6credit is actually derived from the +atin word 63redere. 63redere means to have trust or faith. Thus 6credit is directly related with trust. That is why &tate 'ord stated that 63redit is nothing more than that of trust. By this we can say that credit is a tool that is resulted by the complete mutual trust9faith. 63redit creation implies a situation when a bank may receive interest simply by permitting customer to overdraw their accounts or by purchasing securities and paying for them its own che$ue or bank may pay amount to borrower or directly to seller of goods whom against borrower get amount. CREDIT MANAGEMENT 3redit management means the total process of lending start from in$uiry from potential borrower to recover the lending amount from borrower. ;henever my study is concern, credit management in sense of banking sector is the set of activities like # cept application, loan appraisal, &hakh posting, monitoring, recovery, !"A management, etc.

#ORMS O# CREDIT=AD6ANCES +oan )term loan* 3ash credit and overdrafts "urchase 9discounting of bills Bank guarantee 4o)n2term "o)n In case of a loan a specified amount is sanctioned by the banker to the customer, who may either draw the amount in case immediately or may like the amount to be credited to his current account. But legally it is presumed that he has withdrawn the amount from the bank and deposited it in his current account. =e is re$uired to pay interest on the full amount from the date of sanction. A loan may be repayable in installments or in lump sum. 5)*, credit 3ash credit is the main method of lending in India and accounts for above C1G of total bank credit. 5nder the system, the banker specifies the limit, called the cash credit limit for each customer, up to which the customer is permitted to borrower against the security of tangible assets or guarantees. The customer withdraws from his cash credit account as and when re$uires the funds and deposits any amount of money, which he finds surplus with him on any day. The cash credit amount is thus an active and running account to which deposits and withdrawals may be affected fre$uently. The customer is re$uired to provide tangible assets as security to cover the amount borrowed from the banker. The borrower is charged interest on the actual amount utili@ed by borrower and for the period actually utili@ed only. O3erdr)ft* ;hen a current amount holder is permitted by the banker to draw more than what stands to his credit, such an advance is called an overdraft. The banker may take some collateral security or may grant such advance on the personal

security of the borrower. The customer is permitted to withdraw the amount as and when he needs it and to repay it by means of deposit in his account as and when it is feasible for him. Interest is charged on the e act amount overdrawn by the customer and for the period of its actual utili@ation Bi""* Purc,)*e The Banker credits customers account with the amount of the bill after deduction his charges. As the demand bills are repayable on demand and there is no maturity, the banker is entitled to demand their payment immediately on presentation before of drawee. Their practice adopted in the case of demand bills, is known as purchase of the bills. Bi""* !i*count In case of bills discounting, a bank credits the amount of the bill to the drawers account before the reali@ation of the bill and thus lends its funds to him after deduction his charges. The bills purchased and bills discounted by a bank are, therefore, shown in its balance sheet as part of loans and advances. In case of a bill maturing after a period of time ma imum for BE1 days in (!&B, the banker retains the bill for that period and reali@es the amount of bill from the drawee on its due date. This practice is called discounting of the bill. B)n- Gu)r)ntee It is a contract to perform the promise or discharge the liability of a third person in case of his default. In case of guarantee, Bank is taking responsibility to pay the amount to seller if buyer will not pay amount in time.

TIME $ISE BI#7RCATION O# AD6ANCES - &hort-term 'inance - 7edium-term 'inance - +ong-term 'inance F 5p to 2H months F 2H to HH months F Above HH months

SEC7RIT8 $ISE BI#7RCATION O# AD6ANCES &ecured 'inance 9 AdvancesF &ecured Advances are those advances, which provide absolute safety to the Banker by means of a charge, created on the tangible assets of the borrower in favor of the Banker. In such cases, the Banker gets certain rights in the tangible assets over which a charge is created. A &ecured +oan or Advance means a loan or advance made on the security of assets, the market value of which is not at any time less than the amount of such loan or advance. 5nsecured 'inance 9 AdvancesF 5nsecured +oan or Advance means a loan or advance, which are not secured, this types of advances is not preferable for any banking institutions.

"ROCESS O# CREDIT Application inward &hakh report Advocate report Branch report +oan report Inspection report 3ommittee report 'ulfill conditions #$uitable mortgage and e$uitable e tension 7ake9sign document /pen account Insurance posting (ecord department - filing In8)rd )pp"ic)tion A customer seeking an advance is re$uired to submit an appropriate application form. There are different types of application forms for different types of advances available. The information furnished in the application covers, inter alias, the followingF name and address of the borrower and his establishment, the details of borrowers business, the nature and amount of security offered. The application form has to be supported by various ancillary statements like the financial statements and financial pro%ections of the firm. A separate in$uiry department is set under the loan department. =ere, different types of application forms are available and collect process charge from borrowerK application is accepted and entered into computer. S,)-, report This is one of the strangest facility of (!&B compare with other co-operative banks in (a%kot district because of its computeri@ation. This facility provides bank to total 6-und)"i of the borrower related to dealing with bank not only as a

borrower but also as partner, as a director also as a guarantor and same detail of the guarantor also and also about all the types of loans, which are already paid up, which are overdue, which are running and also about past performance of particular. Ad3oc)te report Bank through its legal departments staff in two matters prepares advocate report mostly, which are given belowF In case of land and building loan Before e$uitable of immovable property as a security ;hen the bank prepares advocate report, bank charges some amount from borrower. Br)nc, turn o3er report This report mostly prepare in case of cash credit review9renew, is also known as a branch turn over report. This report presentsF "erformance of borrower with the branch in previous year 4ebit-credit transaction of borrower, &ubmission of stock statement, "ayment of interest +ast outstanding balance Proce**in+ of )pp"ic)tion2"o)n report The application is processed by the clerical staff and checked and passed by senior loan officer and monitoring by loan manager. The preliminary involves an e amination of the following factorsF Ability, integrity, and e perience of the borrower in the particular business ,eneral prospects of the borrowers business "urpose of advance (e$uirement of the borrower and its reasonableness Ade$uacy of the margin

 "rovision of security "eriod of payment And prepare the appraisal report for committee approval

In*pection report Before presenting appraisal report against the committee, bank sends his field officer9inspection officer to on site inspection. The situation which created by borrower by providing information of his business to bank is it fact or notL After the inspection report, this application is ready for putting against the loan committee of the bank. Inspection varies according to the various loans. 'or e.g. In case of cash credit he personally visits the business site and verifies the original books of accounts with that of submitted books of accounts. =e verifies the real stock with the stock mentioned if any difference is found it is clearly mentioned in the report. In case of housing loan inspection officer visits the place and check whether the building is really in e istence or not, whether the construction is as per the statical figure provided to him and plan is as per sanctioned by the municipal corporation. 5ommittee )ppro3)" )nd term* )nd condition* /nce the application is duly processed, it is put for sanction to the appropriate authority. =ere appropriate authority means various loan committees, standing committee and board of directors. +oan manager is a sanctioning authority only in case of review of cash credit facility. Types of committee and its lending powers are given belowF If appropriate authority gives sanction, along with the sanction of advance the bank specifies the terms and conditions applicable to the advance. These usually cover the followingsF The amount of loan or ma imum limit of the advances The nature of the advances The period for which advance is valid

N)me Of 5ommittee B. Board of directors 2. &tanding committee A. (econsideration committee ?. +oan committee )(s.01111B to B111111* 0. +oan committee )(s.A1111B to 011111* H. +oan sub-committee9B )(s.B0111B to A11111* C. +oan sub-committee92 )(s.C011B to B01111* E. +oan sub-committee9A )5p to (s.C0111* D. +oan sub-committee9? )5p to (s.0,111* B1. 3ommittee for loan against immovable property9B )(s.2,01,11B to 0,11,111* BB. 3ommittee for loan against immovable property92 )(s.B,01,11B to 2,01,111* B2. 3ommittee for loan against immovable property9A )(s.20,11B to B,01,111* BA. 3ommittee for loan against immovable property9? )5p to (s.20,111* B?. (ecovery committee9B )more than (s.A,11,111* B0. (ecovery committee92 )(s.B,0111B to A,11,111* BH. (ecovery committee9A )5p to (s.B,01,111* The rate of interest applicable to the advance The primary security to be charged The insurance of the security The detail of collateral security, if any, to be provided The margin to be maintain /ther restrictions or obligations on the part of the borrower

It is common banking practice to incorporate important terms and conditions on a stamped security document to be e ecuted by the borrower. (ate of stamp duties are given followsF 4emand promissory note +etter of guarantee IAgreement letter )+etter of lien* +etter of pledge +etter of continuity 5p to 0,11,111 Above 0,11,111 5p to 0,11,111 F (s. B F (s. H1 F (s. 01 F (s. 29thousand F (s. 01 F (s. 01 F (s. BB1 F (s. 29thousand Above 0,11,111

Agreement letter for 3ash credit9/verdraft

7a imum limit of stamp duty is (s. 2,11,111 IAgreement letter is in case of vehicle loan, security loan, bills purchase, bills discounting, guarantee, education loan, etc. E1uit)b"e Mort+)+e And E1uit)b"e E9ten*ion ;hen the loan is sanctioned with condition that to put the real document as a mortgage in security )prime9collateral*, it is must that to make the e$uitable mortgage of the property. &ome time a property which given in mortgage by borrower is already put before the bank in case of other loan as a security at that time e$uitable mortgage is already done by party so there is no need of e$uitable mortgage again but the e$uitable e tension is only needed. #$uitable mortgage on non-%udicial stamp paper Amount of *)nctioned "o)n mort+)+e 5p to B0,11,111 Above B0,11,111 B92G of sanctioned loan BG of sanctioned loan OR (s. B,11,111 );hichever is less* "o)n of non.judici)" *t)mp p)per for e1uit)b"e

M)-e2*i+n document This application is now in the document department, document department take signature of loanee and guarantors in specimen card and also on the sanction letter to seat beside and verify all the documents. Types of documents are discussed in each type of loan separately. This process is last for borrower, after this loan is sanctioned. !o formality is remaining at the borrower side. Open )ccount !ow loan is sanctioned, all formalities are completed. &o bank is giving your amount of loan either by credited in your account or pay the amount to the party, whose $uotation is provided by borrower to bank. Bank opens your account with himself to get the actual transaction between bank and borrower. In*ur)nce po*tin+ It is must for loanee to insure the property or e$uipment, which is hypothecated with the bank against loan as a security. This policy is assigned in favor of bank, which is also re$uired. In case of immovable property or new purchase of machinery, e$uipment, etc. insurance of same amount and in case of old machinery, goods stock, etc. twice of the price insurance is needed. In case of education loan, the life insurance of student is re$uired. &hakh department is posting it in borrowers account. Record dep)rtment : fi"in+ !ow total process is over and whole documents are need filing for bank record. (ecord department does this work. (ecord department file the documents and store it to proper place.

CREDIT POLICY

General Eligibility Criteria For Credit In RNSB As per the rules of co-operatives, any one who wants to avail finance has to become a member of the bank. As a shareholder of the bank, he9she have to make compulsory deposit, or the payment of deposit as per rules and regulations of the bank and thereafter, he9she can submit the application for loan. In all the practice with the bank, you are known by bank through your compulsory deposit number. The application will have to be submitted in the prescribed form, wherein all details and particulars will have to be furnished as demanded in the form. =e9she has to submit further particulars as may be asked by the bank. The loanee will be advanced loan against the security and he9she has to submit B or 2 guarantors, who will be the recogni@ed member and accepted to the bank. The interest will be calculated on month-to-month basis. Taking in view the total amount of loans taken for different purpose by the firm or individual, the interest will be calculated at the same rate on all the advances. It will be necessary to make payment of share deposit or loan deposit at the rate of 2.0G of the sanction in case of secured loan and 0G of sanctioned loan or in case of unsecured loan. The ma imum share deposit accepted of (s.20111 and additional deposit over (s.20111 will be accepted as loan deposit. The rate of interest on share deposit is B0G and that on loan deposit is B1G. The company, who wants to take loan from bank, has to get its name registered for the said loan purpose with the registrar of companies and has to submit the document of registration charge to the bank. In case of mortgage of immovable property steps are given belowF Title clear report

#$uitable mortgage on non-%udicial stamp paper Amount of *)nctioned "o)n 5p to B0,11,111 Above B0,11,111 "o)n of non.judici)" *t)mp p)per for e1uit)b"e mort+)+e B92G of sanctioned loan BG of sanctioned loan OR (s.B,11,111 );hichever is less* &ome time a property which given in mortgage by borrower is already put before the bank in case of other loan as a security at that time e$uitable mortgage is already done by party so there is no need of e$uitable mortgage again but the e$uitable e tension is only needed. In case of immovable property or new purchase of machinery, e$uipment, etc. insurance of same amount and in case of old machinery, goods stock, etc. twice of the price insurance is needed. In case of education loan, the life insurance of student is re$uired. 7argin money means gap between purchase value and bank finance. Bank always does payment directly to the seller. &o loanee has to deposit the margin money in the bank.

INTEREST RATE ON 7ARIOUS A!7AN5ES "ar(*'1+ar0 5p to 20111)e cept vehicle loan* 5p to 20111 vehicle loan 2011B to 211111 21111B to B111111 Above B111111 &urety loan, home appliances ,old loan +and and building )unsecured* up to 20111 &taff surety loan +oan against fi ed deposit In(&r&0( ra(& B2G B?G B?G B0G BHG BHG B?G BHG BHG 7ore than 2G of '.4. B?G BC In0(a++)&n( = R0.1000 A2 A2 A2 2A 2A A2 01 A2 2A N1)2&r o*n0(a++)&n( ?1 ?1 ?1 HH HH ?1 2H ?1 HH Till the maturity date of '.4. B1E

Building repairing up to C0111 Building purchase, construction C011B to 211111 21111B toB111111

B?G B0G

BC BC

B1E B1E

S'r1(*n/ o- 'r&d*( ;hile scrutini@ing an application from the bank takes into consideration-safety, li$uidity, purpose profitability, security, and spread of advances. S)fet# Bank has to see that the prospective borrower is a reliable user of the finance and banks money is safe in his hands. 4i1uidit# Bank has to find out that the borrower is $uite capable in repaying the finance within reasonable period. Purpo*e The purpose for the finance should not be illegal. It should be creative, service oriented, development oriented, and like. Banks should check end use of funds. Profit)bi"it# If the pro%ect or the purpose of the finance is not profitable in the hands of the borrower than he will not be in a position of repaying the amount to bank. It should be profitable enough to generate the income to satisfy his needs and banks dues. Securit# The bank has to take into consideration the character, capacity, and capital of the prospective borrower. Bigger advances and cash credit are to be secured with collateral security over and above prime security. Spre)d of )d3)nce* 'or having balanced economy the bank should choose to spread the finance amongst various sectors of the society, so that the risk of incoming bad advances is minimi@ed. 3oncentration on one type of advances may turn into bad advances if the scheme becomes ineffective due to some natural calamities or government rules or change in taste or demands of the society, by and large.

T8"ES O# CREDIT &urety +oan <ehicle +oan &ecurity +oan 4omestic Appliances +oan ,old +oan +and And Building +oan9Industrial Building +oan #ducational +oan '.4. +oan 3ash 3redit /verdraft Bankable +oan Bills "urchase Bills 4iscounting Bank ,uarantee &taff +oans &taff &urety +oan &taff =ousing +oan &taff <ehicle +oan &taff 4omestic Appliances +oan ,yan "rakash :o%ana

E>"LANATION O# ALL T8"ER O# CREDIT S1r&(/ Loan "urpose +imit "eriod (epayable &ecurity 4ocuments "ersonal use (s. 0111 to B1111 ?1 months #$uate 7onthly installments (s.A2 per thousand "ersonal ,uarantee of two members of the bank +oan Appliances form, +etter of guarantee, 4" note, letter of &anction. &ubmit "aper In case of service person pay sleep, in case of businessperson last yearly business report. /ther terms M G of the loan amount if the loan is sanctioned to the tune of (s. 0111 and BG of the loan amount is sanctioned to the tune of (s. B1111 will have to be deposited in the benefit fund. 5nder the above scheme, if the death of the loanee under surety loan occurs, in the said circumstances, in remaining loan in his account will be credited from this account under his loan account and an amount of (s. B111, as Assistance will be paid to the heirs of the loanee immediately from this fund The confirmed government employee can be granted a loan of (s. B1111 on acceptance letter taken from his employer to the effect that they will deduct the installment from his salary every month regularly and remit the same to Bank. It is not applicable that the surety loan of other co-operative society is in presence. Do)&0(*' A??+*an'&0 Loan "urpose 'or purchasing consumer durable articles vi@. free@e, washing machine, flour mill, T.<. <34, sewing machine, room heater, room conditioner, etc., +imit 7inimum (s. 0111 7a imum (s. 21111

(ate of interest BHG

7argin (ate of interest BHG "eriod (epayable &ecurity 4ocuments

?1G ?1 months #$uate 7onthly installments (s.A2 per thousand =ypothecation of goods, personal guarantee of two members of the bank +oan Appliances form, +etter of guarantee, 4" note, =ypothecation of goods9articles purchased, insurance policy

&ubmit "aper In case of service person pay sleep, in case of businessperson last yearly business report, $uotation of the item obtained from Authori@ed 4ealer S&'1r*(/ Loan (A<a*n0( Ma'h*n&r/=#1rn*(1r& @ #*A(1r&0=EB1*?)&n(0 * "urpose purpose +imit 7argin Any limit as per re$uirement 20G to ?1G 2011B to 211111 B?G 21111B to B111111 B0G Above B111111 BHG "eriod (epayable &ecurity ?1 months up to 211111, HH months above 211111 #$uate 7onthly installments (s.A2 up to 211111, In case of more than 211111 (s.2A per thousand The =ypothecation of machinery9furniture purchased as a prime security, as a collateral security )A* # isting old machineries )B* #$uitable mortgage of land and building )3* ,uarantee of two members of the bank as guarantors 4ocuments +oan Application form, +etter of guarantee, 4" note, =ypothecation of machineries old9new, insurance policy, letter of sanctionA 'or purchasing !#;9/+4 machineries9furniture for business

(ate of interest 5p to 20111 B2G,

&ubmit "aper +ast three-year business report, &hop Act +icense, &&I license, #lec. 3onnection proof, IT (eturn )in case of new firm pro%ect report* If applicant is a "artnership 'irm "artnership deed copy, (eg., of firms If applicant is a limited company (esolution for getting loan, 7emorandum of association, Articles of association, letter of assurance for registration in (eg. of 3ompanies /ther terms The payment of this kind of loan is given to the seller directly by Bank. In case of mortgage of old security the insurance of the double amount of old security and about new security, the insurance of the value of purchase price, is re$uired to the taken out from the insurance company recogni@ed by bank and the said insurance policy is re$uired to be recogni@ed to be assigned in favor of the bank. The immovable property of either loanee of guarantor will have to be assigned as collateral security to the bank. S&'1r*(/ Loan (A<a*n0( Good S(o',! "urpose +imit 7argin "rovide loan against good stock Any limit as per re$uirement ?1G 2011B to 211111 B?G, 21111B to B111111 B0G, Above B111111 BHG "eriod (epayable &ecurity ?1 months up to 211111, HH months above 211111 #$uate 7onthly installments (s.A2 per thousand up to (s.211111, in case of more than 211111 (s. 2A per thousand The =ypothecation of goods purchased as a prime security, As a 3ollateral security

(ate of interest 5p to 20111 B2G,

)A* #$uitable mortgage of land and building )B* ,uarantee of two members of the bank as guarantors. 4ocuments +oan Appliances form, +etter of guarantee, 4" note, =ypothecation of goods, insurance policy, letter of sanction, e$uitable mortgage of land and building &ubmit "aper +ast three-year business report, &hop Act +icense, &&I license, #lec. 3onnection proof, IT (eturn, (ent receipt If applicant is a "artnership 'irm "artnership deed copy, (eg., of firms, If applicant is a limited company (esolution for getting loan, 7emorandum of association, Articles of association, letter of assurance for registration in (eg. of 3ompanies /ther terms The payment of this kind of loan is given to the loanee by Bank. Insurance is twice of the value of goods price, is re$uired to the taken out from the insurance company recogni@ed by bank and the said insurance policy is re$uired to be recogni@ed in favor of the bank. The immovable property of either loanee of guarantor will have to be assigned as collateral security to the bank. Land And B1*+d*n< = Ind10(r*a+ B1*+d*n< Loan "urpose +imit 'or purchase or construction or repairing of immovable property (s. B111111 or value of the property which ever is less in case of secured loan for housing purchase or construction 'or industrial purpose as per re$uirement (s. C0111 7a imum )in case of secured loan repairing of house property* (s. C0111 7a imum )land less than 01 yards in case of purchase* (s. ?1111 7a imum )repairing of building and less than 01 yards*

(s. 20111 7a imum )in case of unsecured loan for repairing of house property* 7argin property* (ate of interest BHG )unsecured loan* and C011B to 211111 B?G and B?G )housing repairing )secured loan** "eriod (epayable ?1 months )unsecured loan* B1E months )secured loan )purchase 9 construction* 9 repairing*. #$uate 7onthly installments (s.A2 )unsecured loan repairing* (s. BC )secured loan )purchase9construction9repairing* per thousand. &ecurity 4ocuments #$uitable mortgage of property, two guarantors guarantee /riginal +ekh, certified copy of se$uential document of the property, loan application form, letter of guarantee, e$uitable mortgage of property9indemnity Bond, insurance policy, letter of sanction &ubmit "aper +ast three-year business report, shop Act +icense, IT (eturn, )In case of new pro%ect, pro%ect report*, approved plan and estimate. If applicant is a partnership 'irm "artnership deed 3opy, (eg. of firms If applicant is a limited company (esolution for getting loan, 7emorandum of association, Articles of association, letter of assurance for registration in (eg. of 3ompanies /ther terms +oanee is re$uired to pay the document inspection and advocate fee along with process charge as per the rate time-time decided by the bank. In case of secured loan, when the loan is given for purchase of construction of the immovable property, the full insurance of the value of construction is re$uired to be taken out. In case of collateral of unsecured loan, the insurance of double the value of the sanctioned loan is re$uired to be taken out from the insurance 21111B to B111111 B0 G) secured loan )purchase 9construction** A1G )in case of secured loan for repairing of house

company recogni@ed by the bank. The insurance policy is re$uired to the assigned to the bank. In case of unsecured loan, the applicant has to submit the original document showing the ownership of the immovable property. 'or this type of loan, no insistence is given for title clearance. But the applicant has to submit Indemnity Bond on stamp paper of B01 whenever the demand of bank and necessary as per the advice of the legal retainer of the bank. The insurance for the value of building will have to be taken over and the insurance policy will have to be assigned to the bank.

Con0(r1'(*on L&5&+ And A)o1n( "a00*n< S+a2 Char( !/. /' I!&TA+7# !T B 2 A ? "A(TI35+ A( "linth level +intel level &lab "laster, tiles, electric, 0 6&h*'+& Loan "urpose +imit 7argin "urchase of new two wheeler9purchase of four wheeler old9new As per demand 20G )in case of new vehicle purchase* "lumbing 3ompletion B1G B1G B1G 5"T/ ,(/5!4 '+//( 21G 21G A1G 21G 5"T/ B&t. 5"T/ 2 !4 '+//( 21G 21G B1G B1G B1G 21G '+//( 21G 21G B1G B1G B1G 21G

/+4 >I!4 /' <#=I3+# Truck, Tractor 7atador

:#A( /+4 7/4#+ 2 years A-? years 0 years H-C years E-B1 years BB-B0 years B1 years BB-B0 years 0 years H-B0 years

G /' <A+5ATI/! /' <#=I3+# "A&&#4 H1G 00G 01G ?1G A1G 20G 01G A1G H1G 01G

"etrol 7otor 4iesel motor

I<aluation by bank recogni@ed valuer "eriod ?1 months up to 211111, HH months above 211111 21111B to B111111 B0G Above B111111 BHG (epayable &ecurity 4ocuments #$uated monthly installments (s. A2 up to 211111 (s. 2A more than 211111 per thousand security immovable property of loanee or guarantor =ypothecation of the vehicle, two guarantors guarantee as a collateral 3opy of registration of vehicle in (T/ in particular city, =igher purchase agreement in favor of bank, loan application form, <ehicle dealers guarantee letter, 4" note, letter of sanction, insurance policy, e$uitable mortgage or e tension of property &ubmit "aper In case of service person pay sleep, in case of businessperson last yearly business report, IT return, Nuotation of vehicle /ther terms It is necessary to take full comprehensive insurance for the vehicle, for which the higher purchase agreement is done in favor of the bank. The above insurance

(ate of interest 2011B to 211111 B?G

will have to be taken from the insurance company recogni@ed by bank and will have assign in favor of the bank. Bank shall make direct payment to the dealer9seller. In case of second hand vehicle, necessary valuation report from a recogni@ed valuer to be submitted to the bank. Go+d Loan "urpose +imit "eriod (epayable &ecurity 4ocuments "ersonal use (s. 01111 )in (a%kot city* 21111 )out of (a%kot* 2H months #$uated monthly installments (s. 01 per thousand. ,old silver ornaments or items on (e-pledge +oan application form, 4" note last yearly /ther terms This kind of loan is given on the re-pledge of ornaments or items of gold-silver. This kind of loan is not available to the merchants of gold-silver for the purpose of buying selling. This kind of loan can be given to the member of the bank, but this kind of loan can also be given to the non-member, taking (s. 0 as admission fee and giving nominal membership for the loan only. The purity of the ornaments or items of ,old, which is given on re-"ledge, should be minimum 2B 3arets. 'or the purpose of this kind of loan the bank shall appoint one or more goldsmiths, who will make valuation of the ornaments or items of gold-silver and the loanee has to accept his decision arrived at on the basis of the kind9weight etc. of gold-silver ornaments or items. "er BB.HH? ,ram )"er T/+A* (s. A111 is <alued O C1 G <alued Amount is &anctioned as +oan. business report

(ate of interest B?G

&ubmit "aper In case of service person pay sleep, in case of businessperson

Ban,a2+& Loan "urpose +imit 7argin "eriod To assist the small scale industry (s 211111 20G to ?1G ?1 months 2011B to 211111 B?G (epayable &ecurity #$uated monthly installments of A2 (s. "er thousand As a collateral security house property of loanee or guarantor or fi ed deposits or national saving certificates as a mortgage C1G of sanctioned loan, guarantee of two guarantors 4ocuments #$uitable mortgage of property, loan application form, letter of guarantee, 4" note, letter of sanction, insurance policy &ubmit "aper &hop Act +icense, &&I license, #lec. 3onnection proof, (ent receipt, pro%ect report /ther terms This loan is sanctioned on the recommendation of district industrial center after security and taking in view the value of security given against loan and particulars of guarantor. Amount of subsidy given and sanctioned to the application is credit in his loan account. The payment e cept amount, which is sanctioned against working capital, of this loan is made directly to the party, who has given the $uotation. T/?& o- 210*n&00 'ond*(*on o- 0120*d/ Trading firm &ervice sector C011 or B1G of loan amount whichever is less B1111 of B1G of loan amount whichever is less

(ate of interest 5p to 20111 B2G

7anufacturing firm 21111 or B1G of loan amount whichever is less O5&r Dra-(

"urpose +imit 7argin "eriod

To fulfill the need of working capital of business As per re$uirement ?1G 5p to B year 2011B to 211111 B?G 2111B to B111111 B0G Above B111111 BHG

(ate of interest 5p to 20111 B2G

(epayable

The customer is permitted to withdraw the amount as and when he needs it and to repay it by means of deposit in his account as and when it is feasible for him

&ecurity 4ocuments

=ypothecation of goods stock and or e$uitable mortgage of property guarantee of two guarantors /verdraft application form, letter of guarantee, e$uitable mortgage of property, 4" note, letter of continuity, letter of sanction, insurance policy

&ubmit paper +ast three-year business report, rent receipt, IT return, shop act license

Ca0h 'r&d*( (<ood 0(o',! "urpose +imit 7argin "eriod three year* (ate of interest (epayable 5p to (s. 201119- B2G, 2011B to 2,11,111 B?G, 2,11,11B to B1,11,111 B0G, above B1,11,111 BHG The customer is permitted to withdraw the amount as and when he need it and to repay it by means of deposit in his account as and when it is feasible for him To meet the need of working capital business unit As per re$uire ?1G B2 month )to be reviewed every year and renewed every

&ecurity

a* as a prime security hypothecation of goods stock b* As a collateral security machinery, furniture e$uipment, fi ed deposit, national saving certificate, e$uitable mortgage of immovable property c* ,uarantee of two guarantors

4ocument

3ash 3redit Application 'orm, Agreement +etter, #$uitable 7ortgage of "roperty, +etter /f &anction, +etter /f 3ontinuity, 4" note, hypothecation of goods, Insurance "olicy

&ubmit paper +ast three year Business (eport, &hop Act +icense, &&I +icense, electricity connection proof, IT return, rent receipt If applicant is a partnership firm "artnership deed copy, (eg. of firms If applicant is a limited company (esolution for getting loan, memorandum of association, articles of the association, letter of assurance for registration in reg. of companies /ther terms +oanee has to submit the stock statement to the bank every month regularly. +oanee has to submit the balance sheet, profit and loss account every year. +oanee has to submit the copy of income ta return or income ta assessment order every year. In the cash credit account facility, the turn over will to be done thrice of the sanctioned facility within H month and the same will have to be done five times of the sanctioned facility within one year. The insurance for twice the value of sanctioned cash credit will have to be taken over and the insurance policy will have to be assigned to the bank. In case of cash credit the facility can be availed maintaining the goods stock margin. &ale of goods and amount of recovery cannot be set off, but the same should be credited in the bank and the amount of payment should be made by bank che$ue all the business transaction should be made through bank.

As per the norms of the reserve bank of India, a borrower cannot operate two cash credit account at a time with two different banks. Ed1'a(*on Loan "urpose This kind of loan is given to the brilliant students, who do not further their study because of paucity of finance, with a view to building their career. The bank is giving loan to cooperate and to give assistance to such students for education purpose +imit 7argin a* &tudy in India 5p to 20,111 F (s. B,01,111 F nil F B0G F 20G b* &tudy in abroadF (s. 2,11,111 20,11B to B,01,111 20,111 to 2,11,111 (ate of interest (epayable &ecurity 4ocument B?G

#$uates monthly installments of (s. A2 per thousand #$uitable mortgage of property, guarantee of two guarantors +oan application form, #$uitable 7ortgage /f "roperty, +etter /f &anction, +etter /f continuity, continuity security letter, 4" note, Insurance "olicy of student, which is assigned in favor of bank, letter of lien and set off, letter of guarantee, stamp application cum agreement form

&ubmit paper In case of service person pay sleep, in case of businessperson last yearly business report, two photograph of student /ther terms Interest is re$uired to be paid every month The loan can be sanctioned keeping in view the loanees repaying capacity 3ompulsory first class in every important e amination +oanee is that who has a property on his own name. &tudent has to %oin as a coloanee. The installment of loan will be stated after H months of the completion of study

#*A&d d&?o0*( +oan "urpose +imit 7argin "eriod &ecurity 4ocuments /ther terms To grant loan 9 overdraft to an individual or a firm against '.4.(. As per re$uirement 01 G or less Till due date of '.4.(. 2 G more than '.4.(. 4uly discharge '.4.(. 4" note, duly discharge '.4.(., form of application +ien should be noted in the '4( account and on the back of the '.4.(. duly discharged B*++0 ?1r'ha0& "urpose +imit 7argin "eriod 3harges 4ocuments To assist the customer for their short-term need of working capital As re$uired by applicant ,enerally 20 G BE G per annum Actual reali@ation period Table is given 4" note, letter of guarantee, letter of continuity, agreement letter

(ate of interest

(ate of interest

B*++0 D*0'o1n(*n< "urpose +imit 7argin "eriod 4ocuments 3harges /ther terms To assist the customer to provide them working capital against his post- dated received bills As per re$uired by applicant ,enerally 20 G BE G per annum 7a imum BE1 days +etter of bills discounting undertaking, 4" note, letter of guarantee, letter of continuity, agreement letter Table is given Interest to be covered in advance

(ate of interest

Co++&'(*on O- Ch&B1&0 (O.B.C.! Amount /f 3he$ues 5p to (s. 01119+ocation +isted Above (s. B1.11 All /ther +ocation 3ollecting Banks 3ommission P (s.B1 'rom (s. 011B to B1111 'rom (s. B111B to B +ac 'or (s. Above B +ac (s. B.01 9 B111 (s. B.01 9 B111 (s. B0.11 "ostage 3harge 3ollecting Banks 3ommission P (s.B1 "ostage 3harge 3ollecting Banks 3ommission P (s.B1 "ostage 3harge 3ollecting Banks 3ommission P (s.B1 "ostage 3harge

Co++&'(*on O- B*++0 (I.B.C! Amount /f Bill 5p to (s.B111 +ocation +isted Above (s, B1.11 All /ther +ocation 3ollecting Banks 3ommission P (s.B1 'rom (s. B11B to 0111 (s. B0.11 "ostage 3harge 3ollecting Banks 3ommission P (s.B1 'rom (s. 011B to B1111 'rom (s. B111B to B +ac 'or (s. Above B +ac (s, A.11 9 B111 (s. A.11 9 B111 (s. 20.11 "ostage 3harge 3ollecting Banks 3ommission P (s.B1 "ostage 3harge 3ollecting Banks 3ommission P (s.B0 "ostage 3harge 3ollecting Banks

3ommission P (s.B0 "ostage 3harge Ban, <1aran(&&F B* Perform)nce +u)r)ntee This type of guarantee does not involve financial obligation It involves performance with regard to construction of building, installation of plant and machineries within a given time frame and with agreed specifications "erformance relating to supply of materials as per agreed terms and conditions ,uarantees may be given to secure advanced payment, in place of security deposit 9 earnest money deposit 9 tender money deposit etc. "erformance of any other work contract "erformance of plant 9 machinery up to agreed level capacities

2* Fin)nci)" +u)r)ntee These guarantees are given for meeting with financial obligations "urpose +imit 7argin "eriod 3ommission 3harges &ecurity 4ocuments To assist the business As re$uired by applicant 3ash margin )minimum 20 G* by way of '.4.(. #$uitable mortgage )rest of the part* ,enerally B2 months BG per annum in case of B11G cash margin 2G per annum in other cases 1.BG )upfront* '.4.(. duly discharged, e$uitable mortgage of property Application form, counter guarantee

D*--&r&n( (/?&0 o- 0(a-- +oan0 S(a-- 01r&(/ +oan "urpose +imit "eriod (epayable &ecurity 4ocuments "ersonal use (s. B0,111 ma imum HH months BH G #$uated monthly installments of (s. 2A 9 thousand "ersonal guarantee of two staff members of the bank application form, letter of sanction, 4" note, letter of guarantee

(ate of interest

G/an "ra,a0h 8ojana "urpose +imit 7argin (epayable &ecurity 4ocuments this kind of loan is given to the staff members for the higher study of their two children a* &tudy in India 20 G Bank rate P B G #$uates monthly installments of (s. A2 9 thousand #$uitable mortgage of property 4" note, sanction letter, e$uitable mortgage charge e tension letter, life insurance policy of student, which assigned in favor of bank, term loan agreement, rectification letter /ther terms Interest is re$uired to be paid every month The installment of loan will be stated after H months of the completion of study S(a-- 5&h*'+& +oan "urpose +imit (epayable to purchase a new 9 old two wheeler for personal use (s. ?1,111 1G e$uated monthly installments (s. B0 9 thousand F (s. A,01,111 b* &tudy in abroadF (s. ?,01,111 (ate of interest

(ate of interest

&ecurity 4ocuments

hypothecation of vehicle to be purchased 4" note, letter of guarantee, hypothecation of vehicle, insurance policy

S(a-- do)&0(*' a??+*an'&0 +oan "urpose +imit 'or purchasing consumer durables articles vi@. free@e, washing machine, flourmill, T.<., <34, room conditioner, etc. (s. 01,111 for initial 21,111 bank rate for rest amount bench mark rate )current rate* (epayable &ecurity 4ocuments e$uated monthly installments of (s. 21 9 thousand for first 21,111 then afterward (s. 2A 9 thousand hypothecation of vehicle to be purchased 4" note, letter of guarantee, hypothecation of vehicle, insurance policy S(a-- ho10*n< +oan "urpose +imit To construct 9 purchase residential building for officers and other upper cadre 'or clerk 'or peon and others "eriod (epayable &ecurity 4ocuments 21 years H.0 G e$uated monthly installments of (s. C 9 thousand e$uitable mortgage of property, two staff members guarantee 4" note, letter of guarantee, letter of sanction, insurance policy, e$uitable mortgage of property (ate of interest F (s. 0,11,111 F (s. A,11,111 F (s. ?,11,111 (ate of interest

Da(a ana+/0*0 and o20&r5a(*on and 01<<&0(*on0 Pre*ence of "o)n po"ic# In the (&!B, before two year there was not proper policy for loan, but separate circular for each loan. But at present (&!B have its own loan policy and criteria to sensor the loan. 3oincidently, (BI also declared in near, each and every bank should have its own loan policy. This is the point, which is striking us the foresightedness of the bank management and also loan manager of that time 7r. Bhatt who prepare present loan policy with the help of the some efficient staff members of the loan department. Re3i*ion m)de on )nnu)" b)*i* (&!B prepare its own loan policy %ust before two year. &o in one sense, we can say (&!B revised its loan policy in last two year but it is not revised every year regularly. &o I can suggest that to (&!B, for walk with the new era of credit market, bank should try to improve own self in the field of credit management by revising the loan policy time to time by learn from past years e perience. 4o)n po"ic# co3er 4elegation of lending power 7ethod for assessment of working capital (ating of borrowers +oan pricing !e"e+)tion of "endin+ po8er In the past time, (&!B had given delegation of lending power to its selected branch offices but at present (BI hurdle against this. By effect of it, (&!B cancel all the delegation power of its branch offices and burden of the head office gives in written in language of suggestion that what should be the decisionL And head office only complete fulfils the legal formality to sanction the loan. =owever it takes more time for sanctioning loan but by the practical approach bank can solve this difficulty.

Met,od of )**e**ment of 8or-in+ c)pit)" In the (&!B, there are three methods for working capital, which is useful to bank for calculating the need of cash credit or short-term loan of firm. This method gives advantage to bank to find out if the demand borrower is fair. 7ethods of working capital calculation are given belowF 3apital of borrower, and borrowing from relatives are multiplied by three 4ifference between current assets and current liabilities multiply by four 21 G of estimated sales Borrower contribution 0G of the turnover in working capital is accepted Above three whichever is less is original working capital demand of the borrower as per the calculation of (&!B. R)tin+ of borro8er* (&!B has its own method of credit rating that is beneficial for both the bank and the borrower. Because through this bank should maintain their customer who deal with bank regularly and the borrower is appreciated for their performance. Another side borrower gets benefit through interest rate reduction. This method is given belowF Cr&d*( ra(*n< o- +oan0 AAA: Ca0h 'r&d*( a''o1n( In the account, interest is paid regularlyK it is paid at the end of every $uarter within B1 days. &tock statement is received regularly. /verdraft is paid regularly with its interest. #very document is getting regularly for review and renew of account. T&r) +oan0 In the account, interest and installments are paid regularly. !otice is not given on account for any reason.

Amount

of

loan Interest concession BG BG 2G

sanctioned 20,11B to 2,11,111 2,11,11B to B1,11,111 Above B1,11,111

AA: Ca0h 'r&d*( a''o1n( In the account which interest is paid regularlyK it is paid at the end of the every $uarter ma imum A1 days. &tock statement is received regularly /verdraft is paid regularly with its interest. T&r) +oan0 7a imum two installments are due but at the end of the year i.e. on AB st march, there is no due installment. Amount of loan Interest concession

sanction 20,11B to 2,11,111 1.0 G 2,11,11B to 1.0 G B1,11,111 Above B1,11,111 4o)n pricin+ (&!B always give more interest on deposit than other bank in (a%kot district to attract the market, effects the loan pricing. &o loan rate of (&!B is higher. BG

Though (&!B get customer because of its services, its speedy process, practical approach, and its reliability in market. But here one possibility is also that the payer of higher interest is sometime reason for future loss or burden on bank. &o try to get deposit at lower rate to reduce the loan pricing. It is also fact that in this critical situation of co-operative banks, it is very hard to get deposits from the market but if bank management tries to create trust in public, here one more benefit is that the depositor and the borrower is the shareholder of the bank or say owner of the bank. &o it is less hard than other types of bank to create trust. Reportin+ form)t (eporting format for e cess utili@ation of lending process by branch manager is now not needed, because as per the new guidelines of the (BI, branch of cooperative bank has no power to sanction loan. Identific)tion of *en*iti3e *ector* )nd di*countin+ furt,er "endin+ (&!B is not that much big bank in compare of commercial bank, though it is needed for the bank to watch on the general sensitive sectors means lending in that sector which is risky 9 dangerous for any financial institutions. 'or e ample lending against shares. To find out the special sensitive sector, we should continuously watch on our borrowers. &ometimes in case of co-operative banks, reason of their !"A is lending to particular group or industry. (&!B also keep watch and discouraging further lending. 'or e ample builders developers cash credit. Monitorin+ of undu"# ")r+e e9po*ure to )n indi3idu)" or ) +roup To stop the unduly large e posure to an individual or a group, in (&!B loan staff monitor and draw attention of higher authority.

CREDIT APPRAISAL

A??ra*0a+ -or)a( "(I7A(: I!'/(7ATI/! !ame of the unit 4ate of establishment of business Type of business 4ate of starting of dealing with bank Address and telephone no.F /ffice &tructure of unit "roprietorship firm9 partnership firm 9 private limited 9 public limited !ame of the proprietor 9partners 9 directors with 34! )compulsory deposit number* I!'/(7ATI/! (#+AT#4 T/ ,5A(A!T/(& !ames of guarantors 3ompulsory deposit number Business Annual income +and building property Information about prevalent loans I!'/(7ATI/! AB/5T "(#<A+#!T 'A3I+IT: "(/<I4#4 B: (&!B Types of facility Amount granted 4ue date "resent balance AB/5T "(#&#!T 3A&= 3(#4IT 'A3I+IT: 3redit turn over of last year Amount of cash credit Amount of cash credit with overdraft "revious year stock "resent stock and date ,odown 'actory

7easurement Ideal 3redit balance compare with BF B sale To payoff of overdrafts 9 e cess monthly Interest payoff loan Account over due )yes 9 no* &imilarly in stock (egular (egular (egular -----G 4ifferenc e

"erformance of party )remarks*

&ubmission of stock statement (egular

#$uated monthly installments on B1 to B0

I!'/(7ATI/! /' 3/++AT#(A+ &#35(IT: I77/<AB+# "(/"#(T: !ame of owner and designation of him Address of property +and in s$uare yard 3onstruction in s$uare feet #stimated price of property )Amount of land is calculated as per the address P Amount of construction is calculated s$uare feet I A11* /ther liability on it, mention it 7A3=I!#(:9'5(!IT5(#9#N5I"7#!T etc. Amount of property &#35(IT: 3/<#(A,# #stimated value of collateral security 7inus other liability on same property "lus other collateral security Total collateral security

Amount of demand 9 prevalent facility I&ecurity coverageF )total collateral security9total facility* I B11 IAccepted measure 01 G T REE YEARS FIG!RES FOR CO"PARISON "urchas e !et worth

:ear ending

&ales

!et "rofit

&tock

4ebtors

3reditors

FINANCIAL "EAS!RE"ENT 'inancial measurement &ales 3losing stock ,ross profit !et profit Borrowings from relatives !et worth )3apital P reserve Q proprietor 9 partners directors debt* 'inancial measurement 3urrent ratioF )current assets9 current liabilities* Ideal B.20 9 B )minimum* 4ebt e$uity ratioF )Total debt 9 Itotal e$uity* IBorrowings from relatives are included Ideal A9B )ma imum* 7ore 9 less )compare with ideal* 7ore 9 less )compare with last year*

FOR"AT OF BALANCE S EET 3apital and liability 5urrent "i)bi"it# Bank loan 339/4 /utstanding e penses 3reditors of ,oods /thers "roperty and Assets 5urrent )**et* &tock 4ebtors &tores 3ash on hands Bank balance "repaid e penses Advances /thers Total )A* Medium2"on+ term "i)bi"it# Bank loan 'inance corp. loan /ther debts (nsb term loan Borrowing from relatives /thers Total )B* 5)pit)"2re*er3e 3apital (eserve "rofit /ther Total)3* Gener)" tot)" /A;B;50 Total )B* Proprietor2p)rtner2director*< debt /thers ,oodwill "atent +oss of previous years Total)3* Gener)" tot)" /A;B;50 Total )A* Fi9ed )**et* +and and building 7achineries 'urniture <ehicle /ther investments

A&&#&&7#!T '/( 3A&= 3(#4IT 3apital P borrowings from relatives I A )As per the last year balance sheet* ;orking capital )current assets Q current liabilities* I ? )As per the last year balance sheet* #stimated sales I 21 G )3urrent year* 7inimum of above three 4emand 9 prevalent facility 7a imum permissible finance )7inimum from above two* RRRRRRRRRR RRRRRRRRRR RRRRRRRRRR RRRRRRRRRR RRRRRRRRRR RRRRRRRRRR

"AC INERY LOAN APPRAISAL FOR"AT #lectricity connection I!'/(7ATI/! AB/5T T=# 7A3=I!#(: T/ B# "5(3=A&#4 &uppliers name 7achinerys name Nuantity "rice As per margin permissible loan 7A(,I! /' "#(7I&&IB+# 'I!A!3# );/(>I!, 5!IT* 7argin on amount of demanded loan ;orking capital as per last balance sheet #stimated reinvestment of the current year profit 3urrent years estimated working capital )2PA* 7argin of working capital )20 G current asset of last year* 7argin for permissible finance )?-0* If )H* is less than )B*, how can they bring difference of amount from long term sources is re$uired clarification

#&TI7AT#4 "(/'IT A!4 4&3( )4ebt &ecurity 3overage (atio* i. !ew unit "A(TI35+A(& B B. "roduction capacity 2. 5tili@ation capacity )G* A. "roduction ?. &ales 0. !et profit H. 4epreciation C. Interest on loan 2 :#A(& A ?

E. 3ash flow )0PHPC* D. Amount of #7I of demanded loan per annum B1. 4&3( )E9D* BB. Average 4&3(

ii. ;orking capital B* "rofit of current year 2* 4epreciation of current year A* 3ash profit of current year )BP2* ?* Amount of #7I of demanded loan per annum 0* 4&3( )A9?* 7inimum Acceptable 7easure for 4&3( B.0 to 2 &ometimes in case of new unit, pro%ect report present unrealistic picture of future. &o bank should keep it in consideration at the time of calculation of 4&3(. Accepted measure for it is H1 G.

APPRAISAL OF I""O#ABLE PROPERTY !ame of owner and designation of him Address of property +and in s$uare yard "roposed construction in s$uare feet "lan of construction passed by 7unicipal 3orporation #stimated cost of property )Amount of land is calculated as per the address P Amount of construction is calculated s$uare feet I ?11* INSPECTION REPORT

,oods stock Type of business (eporting after checking of accounting books, vouchers, etc. Insurance of stock and mortgaged property is as norms, isnt itL Is it proper for sanctionL

DEPART"ENT NOTE CREDIT DESER#EDNESS OF LOANEE

!ame of facility (e$uested amount for credit "ermissible finance as per appraisal

/T=#( 3(IT#(IA

Borrowings from relatives are retained in business. ;ithout permission from bank relative cannot withdraw that amount. Immovable property is needed to take as a collateral security. +ate9retire partners capital is not withdrawn without permission from bank. 3urrent ratio 4ebt e$uity ratio &ecurity coverage 4&3(

OBSER#ATION AND FINDINGS AND S!GGESTIONS 'ormat for collection of minimum information about potential borrower It is must for any bank who wants to win market to collect the information about his potential customer. (&!B a bank which eager to increase own market share also collect the information about future borrower. 5se of software for credit appraisal Bank has own computer department to develop the software for bank but this now in initial stage. 7a%ority time consume work is done by the computer though appraisal of credit is done by manually. (evision in appraisal format during last two year (&!B prepared its policy before two year and decide proper criteria for sanction the loan. 4ifferent appraisal format for different loan segment There is one common format for all loans are not possible because each loan re$uire particular information and calculation. =ere in (&!B I find different appraisal format for different segments. That we see in above appraisal format. &ystem of fi ation of ma imum time for loan sanction and sanction within limit /n paper, there is no ma imum limit for sanction the loan but generally as per the opinion of officer within ten days loan is sanctioned. &ometimes because of carelessness of the borrower or take time for providing needed documents is reason for delay of sanction the loan. In house e pertise for appraisal of hi tech pro%ects &pecial works always need e perts but in (!&B we find lack of the e pert for appraisal of hi tech pro%ect and it is dangerous pr say risky for any institution. I think (!&B have to recruit e pert for appraisal of hi tech pro%ects who has

special knowledge about business sector and mastery of pro%ect report study and now because of <(&, e pert having e perience is easily available at low cost. "ractice of rating of borrower and loan pricing (!&B give rating to the borrower on the base of their last year dealing with bank. 'or that (!&B have software, which give rating to the borrower. At the time of appraisal, rating is not given. 3ompliance of terms and conditions- "romoters contribution, collateral securities,etc. Before preparing the loan report, it is keeping in view that all types of re$uirement are fulfilled. 3ondition letter is given to customer if customer fulfills all the conditions loan is sanctioned by bank. 3omputation of customer profitability per borrower ,enerally I practice, not a single cooperative bank in (a%kot is calculating the customer profitability per borrower. If it is calculated, bank can know which customers are more beneficial for them so bank can give attention to maintain them and can increase profit. Ad Q hoc sanction rarely done At present, the various committee of bank considers ad-hoc9additional credit for meeting temporary re$uirement only after the borrower has fully utili@ed9e hausted the e isting limit. In the ad-hoc sanction, nothing is taken as security so this is risky but the previous dealing of customer with the bank can give the picture of customer. &anction of loan In the co-operative bank, sanctioning powers are only in the hands of board of directors so sometime loans are sanctioned on the bases of relation, not on the base of the deservedness of customer. I also consider that the cooperative banks are basically meant for the benefit of its members but within the limits of (eserve

Bank of Indias guidelines. &light modification in these rules for well being of members is still allowed.

CREDIT "ONITORING$ FOLLO% !P AND RE#IE%

CREDIT "ONITORING$ FOLLO% !P AND RE#IE% ;hen we lend, it is essential for us that to keep watch on it till we recover it. This is called credit monitoring in terms of banking. CREDIT "ONITORING SYSTE" IN RSNB In the (!&B, there is system for credit monitoring specially account, which is above B1,11,111 rupees is described belowF 'ind out the list of potential !"A accounts above B1,11,111 rupees &tatements of potential !"A accounts are submitted to head office from branches =ead office monitoring this every three months and prepare report on it. (eport is submitted to board of directors. Follo& '( a)tion *or )redit +onitoring in RNSB 3onsolidation of data, which comes from the branches and every month, update the data and generate this and use it for follow up =ead office directly sends the notice to account holders of such accounts To stop the slippage of the potential !"A accounts, bank organi@e the committee under authori@ation of 7r. Bhatt)A.,.7.* and 7r. <adaliya)A.4.7.* with the help every branch recovery officers, they try to recover. ,eneral manager arranges the meeting for that and gives guidelines to the committee member.

OBSER#ATION FINDINGS AND S!GGESTIONS &ystem of loan portfolio review and monitoring There is system of weekly review and monitoring of loan portfolio in the (!&B, every week a statement is prepare to be ac$uainted with the present credit deposit ratio, if this ratio is less than C1G for e ample H0G, it represent that bank can finance up to 0 G at present. "reparation of 7I& report for loan portfolio review at board level #very week, present situation of loan portfolio is putting against board of directors. 3ompliance of prudential guidelines # posure 3eiling F a* Individual21G of the total capital fund F b* ,roup "riority sector lendingF "riority F ;eaker This is followed by the (!&B Ite+, o* (riority ,e)tor, Advances to individuals for activities allied to agriculture +oans and advances to cottage9small scale industries and e$uipment 9system for development of new and renewable sources of energy. Advances to road and water transport operators for purchase of one vehicle "rivate retail traders dealing in essential commodities )fair practice shop* /ther private retail traders with credit limit not e ceeding (s. 0,11,111 &mall business enterprise "rofessionals and self employed persons #ducational loans =ousing loans not e ceeding (s. B1,11,111 3onsumption loan Ite+, o* &ea-er ,e)tion &cheduled caste9scheduled tribe ;omen 01G of the total capital fund H1G of the total advances B0G of the total advances

/thers Timely renew and review by credit limit #very year (!&B review cash credit accounts and every three years renew that accounts. At the time of review bank only keep in view the turnover of business, account inspection, field inspection, renew insurance, renew shop act license, proof of rent, income ta return or assessment of income ta , turnover with bank. But process of renew of accounts is totally inspection of party. Bank considers last three years business progress of the party and deal with bank also.

NPA "ANAGE"ENT

o& a))o'nt be)o+e, Non Per*or+ing A,,et,. Term "o)n* If interest or installment of principal remains past due for a period of any two $uarters it becomes !"A. "ast due means is an amount due under any of the facility but not paid within A1 days after it becomes due. 5)*, credit )nd o3erdr)ft* If the account remains out of order for a period of any two $uarters, it becomes !"A. /ut of order means If the out-standing balance remains continuously in e cess of the sanctioned limit9drawing power There is no credit continuously for si months or 3redit is not enough to cover the interest debited during the same period Bi""* purc,)*e )nd di*countin+ If the bills remains over due and unpaid for the period of two $uarters during the year it becomes !"A. /ther credit facility If any amount to be received remains past due for a period of two $uarters during the year, it becomes !"A.

A00&( '+a00*-*'a(*on The primary )urban* co-operative banks should classify their assets into the following broad groups, vi@. "erforming assets &tandard assets !on-performing assets &ub-standard assets 4oubtful assets +oss assets !on-performing assets !"As are loans given by a bank or financial institute where the borrower defaults or delays payments of interest or repayment of principal. Asset here also includes a leased asset. A !"A was defined a credit facility in respect of which interest and9or installment of principal has remained 6past due for a specified period of time. The specified period in a phased manner is as under :ear ending BDDA BDD? BDD0 onward 'rom 211? "erforming assets ;hich accounts are not in performing are performing assets. ;hich accounts are regular or cover due installments are less than si is called performing assets. If interest has remained unpaid, account become !"A ? $uarters A $uarters 2 $uarters B $uarters

C+a00*-*'a(*on O- Non-"&r-or)*n< A00&(0 After identification of borrowed accounts as !"A the ne t stage is asset classification St)nd)rd )**et* &tandard Assets is one, which does not disclose any problems and which does not carry more than normal risk attached to the business. &uch as asset should not be an !"A. Sub.*t)nd)rd )**et* In case of sub-standard assets, the current net worth of the borrower9guarantors or the current market value of the security charged is not enough to ensure recovery of the dues to the banks in full. In other words, such assets will have well defined credit weakness that %eopardi@e the li$uidation of the debt and are characteri@ed by the distinct possibility that the banks will sustain some loss, if deficiencies are not corrected. An asset where the terms of the loan agreement regarding interest and principal have been re-negotiated or rescheduled after commencement of production, should be classified a sub standard and should remain in such category for at least BE months of satisfactory performance under the re-negotiated or rescheduled terms. If interest and installment of loans have been paid regularly as per the terms of re-scheduled. In other words, the classification of an asset should not be upgraded merely as a result of rescheduling, unless there is satisfactory compliance of this condition. !oubtfu" )**et* An asset is re$uired to be classified as doubtful, if it has remained in the substandard category for B2 months. As in the case of sub-standard assets, rescheduling does not entitle the bank to upgrade the $uality of an advance automatically. A loan classified as doubtful thus all the weakness inherent as that classified as sub-standard, with the added characteristic that the weaknesses make collection

or li$uidation in full, on the basis of currently known facts, conditions and values, highly $uestionable and importable. 4o** )**et* A loss asset is one where loss has been identified by the bank or internal or e ternal auditors or by the co-operation department or by the (eserve Bank /f India inspection but the amount has not been written off, wholly or partly, in other words, such an asset is considered un-collectible and of such little value that its continuance as a bankable asset is not warranted although there may be some salvage or recovery value. PRO#ISION FOR NPA Assets classification &tandard assets &ub standard assets )/n the balance out standing 7I!5& amount guarantee by #3,3 and amount covered by term deposit, !&<, I<", ><", &< and +I3 policy* 4oubtful assets B. /n liability covered by #3,3 2. /n secured liability minus amount covered by term deposit, !&3, I<", ><", &< and +I3 policy A. 4oubtful up to B year year 3. 4oubtful above A years A. /n unsecured liability B11 G 21 G A1 G B11 G !il B1 G G /f provision to be made 1.20 G

B. 4oubtful for above B year but not A 01 G

+oss )/n the balance out standing minus amount guaranteed by #3,3* "rovision against !"A is ade$uate in (!&B, which e press the sound condition of the bank. The bad and doubtful debt reserve was strengthened and the net !"A levels have been brought down to @ero.

#*nd*n<0 -or N"A

Improper selection of borrowers activities ;eak appraisal system for credit proposal industries problem9prospects not locked into 7anagerial competence of borrower given less consideration Irregularities in deficiencies in documentation5ndated !ot renewed Assessment of borrower and guarantors net worth on market opinion +ack of review of borrowed accounts Inade$uate staff to contact borrowers fre$uently +ack of proper follow up by banks 'ailure to take punitive )strict and effective* actions against defaulters Banks failure to appreciate the acts of prompt repayers 5nder financing9non financing in time of pro%ects 7entality and attitude to default willfully !on action9co-operation of government agencies in recovery #ffect of agricultural debt relief scheme Inade$uate monitoring of court cases and delays in e ecution &ocio-physical pressure by some people9activities Target fulfilling under govt. poverty alleviation programme +ack of income generation due to natural calamities and other uncertainties

)S1<<&0(*on0! N"A r&d1'(*on (&'hn*B1&0C &mall !"A loans )loans up to (s.B lacs* (epaying capacity can be easily gauged 7obili@ing li$uid cash for meeting the debt is not difficult ;ritten remedies and repeat personal calls help mostly +egal action is time consuming Influence of other local persons contacts helpful !"A-larger than small but medium )above (s.B lac and up to 0 lac* Branch team can talk to the borrower and work out the repayment programme 4ebts can be settled through +ok Adalat Influence of trade professional circles, associates useful 7edium si@e !"A )once (s.0 lacs and up to (s. 20 lacs* &;/T analysis and analysis of security will be helpful Branches should take advice of =./. from time to time ;hether to have legal action or to go for compromise Take legal advice +arge !"A )over (s. 20 lacs* 3alls for intervention not only by head office staff but also specialists and senior management +egal, technical advice called for &upport of state govt. and &'3 in selling assets Threat of winding up action would be useful

RECO#ERY

R&'o5&r/ (ecovery management consist of the functions and activities the bank carries out ac$uire back what the bank has advanced with principal amount as well as interest on the same. &o it is recovery of what the bank has advanced to loanee for carrying out their purpose9 ob%ective of taking a loan. PROCESS OF RECO#ERY If three installments are outstanding, !otice through branch office "ersonal visit and meeting If no response !otice through advocate Though no effect 3laim through court if party ready, of court settlement otherwise After completion of formalities Bank will get the order of security from court to recover their due.

O20&r5a(*on=-*nd*n< 7ission @ero !"A /ne historical event that occurred during the last $uarter of the year was that all the staff members of the banks took upon themselves of their own volition the task of recovery and a @ero !"A pro%ect was launched under the guidance of senior officers of head office and the directors of the bank. 4uring this year (BI had tightened the !"A norms for default from BE1 days to D1 days. 4espite this tightened norms, the efforts put in by the staff members on their own helped the bank effect substantial recoveries of !"As during the year and also prevent slippage towards !"As. /ne Time &ettlement scheme /ne time settlement scheme is the plan of reserve bank of India to clear the balance sheet and put realistic position of bank against common public. Before this scheme the amount of performing assets was very high in balance sheet of the bank and in real the bank does not earn it. To reduce the !"A through recovery of their ma imum possible amount )principal* and other )interest, penalty interest, charges* write off from the bad debt reserve. T,e )ccount*, 8,ic, )re not +ettin+ benefit of one time *ett"ement

3ases of willful default, frauds and malfeasance +oan with tie up arrangement for recovery )e.g. loans avail by salary earners* +oans avail of or guaranteed by directors or by close relatives of directors or by firms9companies9institutions in which the directors are the interested or by e -directors of respective urban co-operative banks +oans guaranteed by government )including cases where government guarantee has been invoked but not honored by the government* +oans due from government departments9undertakings +oans under government directed programmes

LIMITATION O# ST7D8 Though I have selected the biggest co-operative bank for my study and no doubt here I have learnt a lot, but compared to nationali@e bank, its network is small. The procedure of credit appraisal, various interest rates on different schemes, recovery programmes are specific to (a%kot !agarik &ahakari Bank +td. Also credit management is wide topicK I have tried to cover the most related with it.

BIBLIOGRA"H8 &hekhar >.3. Banking Theory and "ractices. !ew 4elhiF <ikas publishing house pvt. +td., BDE0. Bedi =.+.K =ardikar <.>. "ractical Banking Advances. !ew 4elhiF Institute of banking studies, BDC0. (ao &.&. =andbook for #ditors and ;riters.ahmedabadF Ahmedabad 7anagement Association, BDDD.