Working capital financing policy

Of
HDFC, IDBI, Canara bank, Indian overseas
bank and axis bank

SUBMITTED TO: SUBMITTED BY:

Ms. PARNEET KAUR Amit Madaan

MBA II (C)

5867

SCHOOL OF MANAGEMENT STUDY

PUNJABI UNIVERSITY

PATIALA
 QUESTIONNAIRE-1 HDFC bank

Dear sir /Madam,

I am an MBA student from the school of management studies, Punjabi University and
conducting a survey on “working capital financing policy of different banks “. Kindly spare
some of your valuable time to go through the questionnaire and give your views on this topic.

Q1) for which type of companies you interested in providing working capital loans?

a) Large size companies [ ]

b) Medium size companies [ ]
c) Small size companies [ ]
d) All [√ ]

Q2) what types of facilities are provided by the bank for financing the working capital need of
the companies? (Tick those are applicable)

a) Cash credit [ ]
b) Overdraft [ ]
c) Export credit [ ]
d) Term loan [ ]
e) Letter of credit [ ]
f) Bank guarantees [ ]
g) All of above [√ ]

Q3) how much amount can you provide for the finance of working capital need of companies?

a) For large size companies

Up to 500000 [ ]

500000-1000000 [ ]

More than 1000000 [√]

b) For medium size companies:

Up to 100000 [ ]

100000 to 500000 [√]

More than 500000 [ ]

 c) For small size companies:

Up to 50000 [ ]

50000 to 250000 [√]

More than 2500000 [ ]

Q4) how much interest rate the bank is charging for providing the following working capital
finance scheme?

a) Cash credit [ ]
b) Overdraft [ ]
c) Export credit [ ]
d) Bank guarantees 10.50-12.50%
e) Letter of credit [ ]
f) Term loan [ ]
g) All of the above [ ]

Q5) what type of collaterals are accepted by the banks while providing working capital loans?

a) Residential property [ ]
b) Commercial property [ ]
c) Industrial property [ ]
d) Liquid securities [√ ]
e) All of the above [ ]
f) If, any other ,please specify :

Q6) do you feel that, today the paper work involved in the sanction is reduced?

a) Yes [√ ]
b) No [ ]

Q7) in the event of emergent requirement of a client your bank extends help on an emergency
basis?

a) Yes [√]
b) No [ ]
Q 8) the proposal of the client for the working capital is disposed within

a) A fortnight [ ]
b) A week [√ ]
c) A month [ ]
d) More than a month [ ]

Q 9) factors considered while providing the working capital finance to the companies?

a) Company size [ ]
b) Industry size to which the firm belongs [ ]
c) Credit quality [ ]
d) Expected profitability [ ]
e) Public information [ ]
f) All of the above [√]
g) If any other , please specify [ ]

Q10) Risk involved in providing the working capital finance to the companies as compare to the
other loans?

a) Working capital loans are more risky than the other loans [ ]
b) Equal risk [√ ]
c) Working capital loans are les risky than other loans [ ]

Q11) what is the approximate percentage of non performing assets (NPA’s) in working capital
financing?
Ands: [ ] 2 to 3 %

PERSONAL INFORMATION

NAME OF THE BANK ……… HDFC bank……………………………..,

NAME OF THE PERSON …abhinandan singla……………………………………………..

AGE ……25…………………………………

DESIGNATION …auto loan manager………………………………………………

CONTACT NO. …9779631234………………………………………………..

 QUESTIONNAIRE-2 Canara bank

Dear sir /Madam,

I am an MBA student from the school of management studies, Punjabi University and
conducting a survey on “working capital financing policy of different banks “. Kindly spare
some of your valuable time to go through the questionnaire and give your views on this topic.

Q1) for which type of companies you interested in providing working capital loans?

a) Large size companies [ ]

b) Medium size companies [ ]
c) Small size companies [ ]
d) All [√ ]

Q2) what types of facilities are provided by the bank for financing the working capital need of
the companies? (Tick those are applicable)

a) Cash credit [ ]
b) Overdraft [ ]
c) Export credit [ ]
d) Term loan [ ]
e) Letter of credit [ ]
f) Bank guarantees [ ]
g) All of above [√ ]

Q3) how much amount can you provide for the finance of working capital need of companies?

a) For large size companies

Up to 500000 [ ]

500000-1000000 [ ]

More than 1000000 [√ ]

b) For medium size companies:

Up to 100000 [ ]

100000 to 500000 [ ]
More than 500000 [√]

c) For small size companies:

Up to 50000 [ ]

50000 to 250000 [ ]

More than 2500000 [√ ]

Q4) how much interest rate the bank is charging for providing the following working capital
finance scheme?

a) Cash credit [ ]
b) Overdraft [ ]
c) Export credit [ ]
d) Bank guarantees 10.75-13%
e) Letter of credit [ ]
f) Term loan [ ]
g) All of the above [ ]

Q5) what type of collaterals are accepted by the banks while providing working capital loans?

a) Residential property [ ]
b) Commercial property [ ]
c) Industrial property [ ]
d) Liquid securities [ ]
e) All of the above [√ ]
f) If, any other ,please specify :

Q6) do you feel that, today the paper work involved in the sanction is reduced?

a) Yes [ ]
b) No [√ ]

Q7) in the event of emergent requirement of a client your bank extends help on an emergency
basis?

a) Yes [√ ]
b) No [ ]
Q 8) the proposal of the client for the working capital is disposed within

a) A fortnight [ ]
b) A week [√ ]
c) A month [ ]
d) More than a month [ ]

Q 9) factors considered while providing the working capital finance to the companies?

a) Company size [ ]
b) Industry size to which the firm belongs [ ]
c) Credit quality [ √]
d) Expected profitability [√ ]
e) Public information [ ]
f) All of the above [ ]
g) If any other , please specify [ ]

Q10) Risk involved in providing the working capital finance to the companies as compare to the
other loans?

a) Working capital loans are more risky than the other loans [ ]
b) Equal risk [√ ]
c) Working capital loans are les risky than other loans [ ]

Q11) what is the approximate percentage of non performing assets (NPA’s) in working capital
financing?
Ans :[ ] 1 percent

PERSONAL INFORMATION

NAME OF THE BANK …canara bank..…………………..

NAME OF THE PERSON …bhushan arora……………………………………………..

AGE ……42……………………………………………

DESIGNATION ……head cashier……………………………………………

CONTACT NO. ……9041400922……………………………………………..

QUESTIONNAIRE-3 Indian Overseas bank

Dear sir /Madam,

I am an MBA student from the school of management studies, Punjabi University and
conducting a survey on “working capital financing policy of different banks “. Kindly spare
some of your valuable time to go through the questionnaire and give your views on this topic.

Q1) for which type of companies you interested in providing working capital loans?

a) Large size companies [ ]

b) Medium size companies [ ]
c) Small size companies [ ]
d) All [√ ]

Q2) what types of facilities are provided by the bank for financing the working capital need of
the companies? (Tick those are applicable)

a) Cash credit [√ ]
b) Overdraft [ ]
c) Export credit [ ]
d) Term loan [ √]
e) Letter of credit [ √]
f) Bank guarantees [ √]
g) All of above [ ]

Q3) how much amount can you provide for the finance of working capital need of companies?

a) For large size companies

Up to 500000 [ ]

500000-1000000 [ ]

More than 1000000 [√ ]

b) For medium size companies:

Up to 100000 [ ]

100000 to 500000 [ ]

More than 500000 [√ ]

 c) For small size companies:

Up to 50000 [ ]

50000 to 250000 [ ]

More than 2500000 [√ ]

Q4) how much interest rate the bank is charging for providing the following working capital
finance scheme?

a) Cash credit [ ]
b) Overdraft [ ]
c) Export credit [ ]
d) Bank guarantees [ ]
e) Letter of credit [ ] 10.50-14.50
f) Term loan [ ]
g) All of the above [ ]

Q5) what type of collaterals are accepted by the banks while providing working capital loans?

a) Residential property [ ]
b) Commercial property [ ]
c) Industrial property [√ ]
d) Liquid securities [ √ ]
e) All of the above [ ]
f) If, any other ,please specify :

Q6) do you feels that, today the paper work involved in the sanction is reduced?

a) Yes [√ ]
b) No [ ]

Q7) in the event of emergent requirement of a client your bank extends help on an emergency
basis?

a) Yes [ √ ]
b) No [ ]
Q 8) the proposal of the client for the working capital is disposed within

a) A fortnight [ ]
b) A week [ ]
c) A month [√ ]
d) More than a month [ ]

Q 9) factors considered while providing the working capital finance to the companies?

a) Company size [ ]
b) Industry size to which the firm belongs [√ ]
c) Credit quality [ √ ]
d) Expected profitability [√ ]
e) Public information [ ]
f) All of the above [ ]
g) If any other , please specify [ ]

Q10) Risk involved in providing the working capital finance to the companies as compare to the
other loans?

a) Working capital loans are more risky than the other loans [ ]
b) Equal risk [√ ]
c) Working capital loans are les risky than other loans [ ]

Q11) What is the approximate percentage of non performing assets (NPA’s) in working capital
financing?
Ans :[ ] 2.5%

PERSONAL INFORMATION

NAME OF THE BANK Indian overseas bank,

NAME OF THE PERSON ……raj kumar garg…………………………………………..

AGE ………38…………………………………………

DESIGNATION ……loans and advances managers……

CONTACT NO. ………9041747697…………………………………………..

 QUESTIONNAIRE-4 axis bank

Dear sir /Madam,

I am an MBA student from the school of management studies, Punjabi University and
conducting a survey on “working capital financing policy of different banks “. Kindly spare
some of your valuable time to go through the questionnaire and give your views on this topic.

Q1) for which type of companies you interested in providing working capital loans?

a) Large size companies [ ]

b) Medium size companies [ ]
c) Small size companies [ ]
d) All [√ ]

Q2) what types of facilities are provided by the bank for financing the working capital need of
the companies? (Tick those are applicable)

a) Cash credit [ ]
b) Overdraft [ ]
c) Export credit [ ]
d) Term loan [√ ]
e) Letter of credit [ ]
f) Bank guarantees [ ]
g) All of above [ ]

Q3) how much amount can you provide for the finance of working capital need of companies?

a) For large size companies

Up to 500000 [ ]

500000-1000000 [ ]

More than 1000000 [√ ]

b) For medium size companies:

Up to 100000 [ ]

100000 to 500000 [ ]

More than 500000 [√ ]

 c) For small size companies:

Up to 50000 [ ]

50000 to 250000 [ ]

More than 2500000 [√ ]

Q4) how much interest rate the bank is charging for providing the following working capital
finance scheme?

a) Cash credit [ ]
b) Overdraft [ ]
c) Export credit [ ]
d) Bank guarantees [ ] 11-14%
e) Letter of credit [ ]
f) Term loan [ ]
g) All of the above [ ]

Q5) what type of collaterals are accepted by the banks while providing working capital loans?

a) Residential property [ ]
b) Commercial property [ ]
c) Industrial property [ ]
d) Liquid securities [ ]
e) All of the above [√ ]
f) If, any other ,please specify :

Q6) do you feels that, today the paper work involved in the sanction is reduced?

a) Yes [ ]
b) No [√ ]

Q7) in the event of emergent requirement of a client your bank extends help on an emergency
basis?

a) Yes [ √ ]
b) No [ ]
Q 8) the proposal of the client for the working capital is disposed within

a) A fortnight [ ]
b) A week [ √]
c) A month [ ]
d) More than a month [ ]

Q 9) factors considered while providing the working capital finance to the companies?

a) Company size [ ]
b) Industry size to which the firm belongs [ ]
c) Credit quality [ √ ]
d) Expected profitability [ ]
e) Public information [ ]
f) All of the above [ ]
g) If any other , please specify [ ]

Q10) Risk involved in providing the working capital finance to the companies as compare to the
other loans?

a) Working capital loans are more risky than the other loans [ ]
b) Equal risk [√ ]
c) Working capital loans are les risky than other loans [ ]

Q11) What is the approximate percentage of non performing assets (NPA’s) in working capital
financing?
Ans :[ ] less than 5%

PERSONAL INFORMATION

NAME OF THE BANK …….. axis bank…………………..

NAME OF THE PERSON ……….sushant jain……..

AGE ………23…………………………………………

DESIGNATION …………….sales officers…………………

CONTACT NO. ………9417232793…………………………………………..

 QUESTIONNAIRE-5 IDBI bank

Dear sir /Madam,

I am an MBA student from the school of management studies, Punjabi University and
conducting a survey on “working capital financing policy of different banks “. Kindly spare
some of your valuable time to go through the questionnaire and give your views on this topic.

Q1) for which type of companies you interested in providing working capital loans?

a) Large size companies [ ]

b) Medium size companies [ ]
c) Small size companies [ ]
d) All [ √]

Q2) what types of facilities are provided by the bank for financing the working capital need of
the companies? (Tick those are applicable)

a) Cash credit [ ]
b) Overdraft [√ ]
c) Export credit [ ]
d) Term loan [√ ]
e) Letter of credit [ ]
f) Bank guarantees [√ ]
g) All of above [ ]

Q3) how much amount can you provide for the finance of working capital need of companies?

a) For large size companies

Up to 500000 [ ]

500000-1000000 [ ]

More than 1000000 [√ ]

b) For medium size companies:

Up to 100000 [ ]

100000 to 500000 [√ ]

More than 500000 [ ]

 c) For small size companies:

Up to 50000 [ ]

50000 to 250000 [√]

More than 2500000 [ ]

Q4) how much interest rate the bank is charging for providing the following working capital
finance scheme?

a) Cash credit [ ]
b) Overdraft [ 13.00 ]
c) Export credit [ ]
d) Bank guarantees [ ]
e) Letter of credit [ ]
f) Term loan [12.75 ]
g) All of the above [ ]

Q5) what type of collaterals are accepted by the banks while providing working capital loans?

a) Residential property [ √ ]
b) Commercial property [ √]
c) Industrial property [ ]
d) Liquid securities [ ]
e) All of the above [ ]
f) If, any other ,please specify :

Q6) do you feels that, today the paper work involved in the sanction is reduced?

a) Yes [ ]
b) No [√ ]

Q7) in the event of emergent requirement of a client your bank extends help on an emergency
basis?

a) Yes [ √]
b) No [ ]
Q 8) the proposal of the client for the working capital is disposed within

a) A fortnight [ ]
b) A week [ ]
c) A month [ ]
d) More than a month [√ ]

Q 9) factors considered while providing the working capital finance to the companies?

a) Company size [ ]
b) Industry size to which the firm belongs [ ]
c) Credit quality [ ]
d) Expected profitability [ ]
e) Public information [ ]
f) All of the above [√ ]
g) If any other , please specify [ ]

Q10) Risk involved in providing the working capital finance to the companies as compare to the
other loans?

a) Working capital loans are more risky than the other loans [ ]
b) Equal risk [√ ]
c) Working capital loans are les risky than other loans [ ]

Q11) What is the approximate percentage of non performing assets (NPA’s) in working capital
financing?
Ans :[ ] 5%

PERSONAL INFORMATION

NAME OF THE BANK …IDBI bank, …………………

NAME OF THE PERSON ……rashmi sharma…………………………………………..

AGE ………26 years…………………………………………

DESIGNATION ………clerk…………………………………………

Contacy no. …….9855317769………………

Interpretation

From the collected data, it can be concluded that all of the banks are providing the working

capital finance to all types of companies and they can extend there credit limits according to the

requirement of the companies. Term loan are the most popular facility that have been used by the

banks. The rate of interest on various kinds of facilities is more than 10.5 %. The majority of the

banks think that paper work involved in these types of transactions is not much and it is required.

There most important preference as collaterals is liquid securities. The most percentage of banks

says that they dispose the credit within a week.

All the banks consider that the risk associated with these types of loans are similar to the other

loans. The IDBI banks have maximum percentage of NPA’s and canara and axis banks have

minimum percentage.

At The end it can be said that Indian overseas bank has seems to be the better working capital

financing policy and the IDBI bank has least good working capital financing policy