Rimple Project

SUMMER TRAINING PROJECT REPORT ON
CREDIT CARD AND LOAN ASSESSMENT
FOR THE PARTIAL FULFILLMENT OF THE

REQUIREMENT
FOR THE AWARD OF
DEGREE OFMASTER OF BUSINESS
ADMINISTRATION
(2009-2011)
Submitted to: Submitted by:

Dr. Harinder Singh Gill Rimple bamba
HOD PG Studies MBA 3rd SEM
90032265822
DEPARTMENT OF MANAGEMENT
STUDIES AD COMPUTER APPLICATIONS
AMRITSAR COLLEGE OF ENGINEERING &
TECHNOLOGY, AMRITSAR
1
CERTIFICATE
This is to certify that the project work done

on CREDIT CARDS AND LOAN
ASSESSMENT is a bonafide work carried
out by Ms.RIMPLE BAMBA under my
supervision and guidance. The project
report is submitted towards the partial
fulfillment of 2 – year, full time Post
Graduate Degree in Management.
The original work was carried during 10TH
JUNE to 25TH JULY in AXIS
BANK,AMRITSAR.
Name & Sign of Industry Guide

Date:
2
ACKNOWLEDGEMENT
“For any successful work, it owes its thanks to many”
Summer training is one of the most vital and active part of the
curriculum of management students. I did the work as a management
trainee at AXIS Bank.
Hard work, knowledge, dedication & positive attitude all are

necessary to do any task successfully but one ingredient which is also
very important than others and at times more important than others is
cooperation & guidance of experts and experienced person.
Firstly I would like to extend my heartfelt gratitude to Mr. Amit

Makhija the Branch Manager, for his guidance throughout the
project. Without his support and cooperation I would have failed in
my endeavours and targets in the summer training.
I emphatically express the regards and gratitude towards my

speculative guide Dr.Harinder Singh gill for his expert and
invaluable guidance, constant encouragement, and constructive
criticism to accomplish such laborious and exhaustive work timely
and perfectly.
3
I would also like to thank all the Staff of Axis Bank, Amritsar for
their invaluable suggestion and cooperation to complete my project
success.
Rimple bamba
DECLARATION
I, Ms. RIMPLE BAMBA hereby declare that

this project report is the record of authentic
work carried out by me during the period from
10TH JUNE to 25th JULY and has not been
submitted to any other University or Institute
for the award of any degree / diploma.
Signature
Name of the student
Date
4
PREFACE
When I’m working on a problem, I never think about beauty. I think
only how to solve the problem, but when I have finished, if the
solution is not beautiful, I know it is wrong.”
I have pleasure in presenting the final project report on “Credit cards

and loan assessment”`. I am grateful to the scholars of the ACET for
their kind appreciation. In this project I have studied the problems and
perception of people of Amritsar regarding credit cards and loan
assessment. I have added the various types of credit cards and loan
assessment of Axis bank.I am grateful to the Mr. Amit Makhija for
assist me in my final project report
RIMPLE
BAMBA
5
CONTENTS
Serial
Particular Page No.
No.
1 Certificate From Organisation
2 Certificate by head of institute
3 Acknowledgement
4 Declaration
5 Preface
4 Chapter 1 9
Introduction-banking in India 10
About axis bank 16
6 Chapter 2 25
Review of literature 26
Chapter 3 56
Research methodology 57
7 Chapter 4 59
Data analysis and interpretation 59
Easy Credit Card 60
Variants 61
Pricing 61
8 Process 64
Documentation 67
6
Loan Assessment 68
1. Home Loan 68
Documentation 69
Interest Rate 70
2. Personal Loan 71
Normal Salaried Individual 71
Salaried Professional 72
Salaried Doctor 73
Documentation 74
Interest Grid 75
Particular
3. Loan Against Property 75
Salaried Individual 75
Professional 76
Self Employed Individual 77
Documentation 78
Interest Grid 80
4. Auto Loan 81
Category Grid 81
Salaried Employee 82
Self Employed 83
Partnership 84
Private and public limited
85
company
Documentation 86
Interest Rate 88
5. Agriculture Loan 89
Commodity Power-(Warehouse 90
7
Receipt financing)
Agricultural Gold Loan ‘Power
95
Gold’
Power Gold Plus 99
Kisan Power 100
Direct Financing to Farmers for
Cattle Loans through Dairies/ 111
Cooperatives
Direct Financing to Farmer Under
116
Contract Farming
6. Education Loan 121
9 Chapter 5 124
Findings 125
10 Chapter 6 130
Suggestions/recommendations 131
11 Chapter 7 134
Conclusion 135
Glossary 136
Appendix/Annextures 141
Bibliography 145
8
CHAPTER 1
INTRODUCTION
9
INTRODUCTION
Banking In India: Overview:
Banking in India originated in the first decade of 18th century. The

first banks were The General Bank of India, which started in 1786,
and Bank of Hindustan, both of which are now defunct. The oldest
bank in existence in India is the State Bank of India, which originated
in the "The Bank of Bengal" in Calcutta in June 1806. This was one of
the three presidency banks, the other two being the Bank of Bombay
and the Bank of Madras. The presidency banks were established under
charters from the British East India Company. They merged in 1925 to
form the Imperial Bank of India, which, upon India's independence,
became the State Bank of India. For many years the Presidency banks
acted as quasi-central banks, as did their successors. The Reserve
Bank of India formally took on the responsibility of regulating the
Indian banking sector from 1935. After India's independence in 1947,
the Reserve Bank was nationalized and given broader powers.
RESERVE BANK OF INDIA

Central Bank and supreme monetary authority
10
Scheduled Banks Non Scheduled Banks
Cooperative Commercial
Urban Cooperatives State Cooperatives Public Sector Private Sector Foreign Banks
Early History:
Other Nationalized Banks
SBI & Associates
Regional Rural Banks
The first fully Indian owned bank was the Allahabad Bank, established
in 1865. However, at the end of late-18th century, there were hardly
any banks in India in the modern sense of the term. The American
Civil War stopped the supply of cotton to Lancashire from the
Confederate States. Promoters opened banks to finance trading in
Indian cotton. With large exposure to speculative ventures, most of the
banks opened in India during that period failed. The depositors lost
money and lost interest in keeping deposits with banks. Subsequently,
banking in India remained the exclusive domain of Europeans for next
several decades until the beginning of the 20th century. Foreign banks
too started to arrive, particularly in Calcutta, in the 1860s. The
Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860,
and another in Bombay in 1862; branches in Madras and Pondichery,
then a French colony, followed. Calcutta was the most active trading
port in India, mainly due to the trade of the British Empire, and so
became a banking centre.
The Bank of Bengal, which later became the State Bank of India.
Around the turn of the 20th Century, the Indian economy was passing
through a relative period of stability. Around five decades had elapsed
since the Indian Mutiny, and the social, industrial and other
infrastructure had improved. Indians had established small banks,
most of which served particular ethnic and religious communities.
11
The presidency banks dominated banking in India. There were also
some exchange banks and a number of Indian joint stock banks. All
these banks operated in different segments of the economy. The
exchange banks, mostly owned by Europeans, concentrated on
financing foreign trade. Indian joint stock banks were generally under
capitalized and lacked the experience and maturity to compete with
the presidency and exchange banks. This segmentation let Lord
Curzon to observe, "In respect of banking it seems we are behind the
times. We are like some old fashioned sailing ship, divided by solid
wooden bulkheads into separate and cumbersome compartments."
By the 1900s, the market expanded with the establishment of banks

such as Punjab National Bank, in 1895 in Lahore and Bank of India,
in 1906, in Mumbai - both of which were founded under private
ownership. Punjab National Bank is the first Swadeshi Bank founded
by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The
Swadeshi movement in particular inspired local businessmen and
political figures to found banks of and for the Indian community. A
number of banks established then have survived to the present such as
Bank of India, Corporation Bank, Indian Bank, Bank of Baroda,
Canara Bank and Central Bank of India.
Nationalized Banks in India:
Banking System in India is dominated by nationalized banks. The

nationalization of banks in India took place in 1969 by Mrs. Indira
12
Gandhi the then prime minister. The major objective behind
nationalization was to spread banking infrastructure in rural areas and
make available cheap finance to Indian farmers. Fourteen banks were
nationalized in 1969. Before 1969, State Bank of India (SBI) was the
only public sector bank in India. SBI was nationalized in 1955 under
the SBI Act of 1955. The second phase of nationalization of Indian
banks took place in the year 1980. Seven more banks were
nationalized with deposits over 200 crores.
List of Public Sector Banks in India is as follows:
➢ Allahabad Bank ➢ State Bank of India

(SBI)
➢ State Bank of Indore ➢ State Bank of Mysore
➢ State Bank of Patiala ➢ State Bank of
Saurashtra
➢ State Bank of Travancore ➢ Syndicate Bank
➢ UCO Bank ➢ Union Bank of India
➢ United Bank of India s ➢ Vijaya Bank
➢ Andhra Bank ➢ Bank of Baroda
➢ Bank of India ➢ Bank of Maharashtra
➢ Canara Bank ➢ Central Bank of India
➢ Corporation Bank ➢ Dena Bank
➢ Indian Bank ➢ Indian Overseas Bank
➢ Oriental Bank of Commerce ➢ Punjab and Sind Bank
➢ Punjab National Bank ➢ State Bank of Bikaner
& Jaipur
➢ State Bank of Hyderabad
Private Banks in India:
13
All the banks in India were earlier private banks. They were founded
in the pre-independence era to cater to the banking needs of the
people. But after nationalization of banks in 1969 public sector banks
came to occupy dominant role in the banking structure. Private sector
banking in India received a fillip in 1994 when Reserve Bank of India
encouraged setting up of private banks as part of its policy of
liberalization of the Indian Banking Industry. Housing Development
Finance Corporation Limited (HDFC) was amongst the first to receive
an 'in principle' approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector.
Private Banks have played a major role in the development of Indian
banking industry. They have made banking more efficient and
customer friendly. In the process they have jolted public sector banks
out of complacency and forced them to become more competitive.
List of Private Sector Banks in India is as follows:
 Bank of Rajasthan ➢Bharat Overseas Bank

 Axis Bank ➢Catholic Syrian Bank
 Centurion Bank of Punjab ➢Dhanalakshmi Bank
 Federal Bank ➢HDFC Bank
 ICICI Bank ➢IDBI Bank
 IndusInd Bank ➢ING Vysya Bank
 Jammu & Kashmir Bank ➢Karnataka Bank
 Karur Vysya Bank ➢Kotak Mahindra Bank
 SBI Commercial and International Bank ➢South Indian Bank
 United Western Bank ➢ YES Bank
14
15
About AXIS:
Start on 1994
On July 2007 UTI Bank rebrand as Axis Bank
Axis Bank was the first of the new private banks to

have begun operations in 1994, after the Government
of India allowed new private banks to be established.
The Bank was promoted jointly by the Administrator
of the specified undertaking of the Unit Trust of India
(UTI - I), Life Insurance Corporation of India (LIC)
and General Insurance Corporation of India (GIC) and
other four PSU insurance companies, i.e. National
Insurance Company Ltd., The New India Assurance
Company Ltd., The Oriental Insurance Company Ltd.
and United India Insurance Company Ltd.
The Bank today is capitalized to the extent of Rs.

407.44 crores with the public holding (other than
promoters and GDRs) at 54.51%.
The Bank's Registered Office is at Ahmedabad and its

Central Office is located at Mumbai. The Bank has a
very wide network of more than 1042 branches
(including 56 Service Branches/CPCs as on 30th June
2010). The Bank has a network of over 4474 ATMs
(as on 30th June 2010) providing 24 hrs a day
banking convenience to its customers. This is one of
the largest ATM networks in the country.
16
The Bank has strengths in both retail and corporate
banking and is committed to adopting the best industry
practices internationally in order to achieve excellence.
Mission and Values:
 Customer Service and Product Innovation tuned to diverse

needs of individual and corporate clientele.
 Continuous technology up gradation while maintaining
human values.
 Progressive globalization and achieving international
standards.
 Efficiency and effectiveness built on ethical practices.
 Customer Satisfaction through providing quality service
effectively and efficiently.
 "Smile, it enhances your face value" is a service quality
stressed on Periodic Customer Service Audits.
 Maximization of Stakeholder value.
 Success through Teamwork, Integrity and People.
17
Vision 2015 and Core Values
VISION 2015:
To be the preferred financial solutions provider

excelling in customer delivery through insight,
empowered employees and smart use of technology
Core Values
Customer Centricity

 Ethics

 Transparency

 Teamwork

 Ownership
Capitalization:
359 crore
Public Holding = 57.60%
Registered Office:
18
Ahmadabad
Central Office:
Mumbai
Total Branches:
827
ATM:
3595
Board of Directors
The members of the Board are :
Dr. Adarsh Kishore Chairman

Smt. Shikha Sharma Managing Director & CEO
Shri M. M. Agrawal Deputy Managing Director
Shri J.R. Varma Director
Dr. R.H. Patil Director
Smt. Rama Bijapurkar Director
Shri R.B.L. Vaish Director
Shri M.V. Subbiah Director
Shri K. N. Prithviraj Director
Shri V. R. Kaundinya Director
Shri S. B. Mathur Director
Shri M. S. Sundara Rajan Director
19
Bank Strengths:
Retail Banking
Corporate Banking
Auditors:
M/s. S. R. Batliboi & Co. Auditors Chartered Accountants
Registrar and Share Transfer Agent:

M/s. Karvy Computershare Private Limited
Profile:
Axis Bank is one of the fastest growing banks in the country and has
an extremely competitive and profitable banking franchise evidenced
by:
Comprehensive portfolio of banking services include Corporate
Credit, Retail Banking, Business Banking, Capital Markets, Treasury
and International Banking.
The Position as on 31st March 2009 was as under: -
Balance Sheet Size Rs 1,47,722 crore
Total Deposits Rs 1,17,374 crore
Net Advances Rs 81,557 crore
Investments Rs 46,330 crore

Net NPA 0.35%
20
Capital Adequacy Ratio 13.69% %
Axis Bank has in place a sound technological platform:

Sound technological platform with centralized database and operations
enabling 24*7*365 ‘Anywhere Banking’, in order to render the best
customer service to its 5.5 million customer base.
Competitors:
Private Sector competitors:
HDFC
ICICI
Public Sector competitors:

SBI
PNB
Retail Banking:
The Bank continued with its thrust on customer segmentation in the
retail liabilities business to spearhead growth during the financial year
2008-09. Savings Bank deposits grew to Rs. 25,822 crores on 31st
March 2009 from Rs. 19,982 crores as on 31st March 2008 showing a
year on year growth of 29%.
Corporate Banking:
The Business Banking Department (Erstwhile Institutional Business
Department) was set up in the year 2000, with the objective of having
a special cell to serve the institutional and corporate clientele of the
Bank. Business Banking initiatives revolve around transaction
21
A
b
N
is
x
k
n
a
R
I
banking services to garner Business Current Accounts, Cash
Management Service mandates, Government Business - Collection &
Payment Services. As a natural corollary, scope of the business was
extended this year to Business loans for Small Businesses so that all
product and services to
comprehensively made available.
small business
through the respective Business Groups, as under:

Business Current Accounts
Business Assets
Cash Management ServicesGovernment Business
Corporate Credit:
enterprises
The Department presently focuses on the four broad areas
Current Account deposits grew by 24% yoy, from Rs. 20,045 crores as
at end March’08 to Rs. 24,822 crores as at end March’09. The daily
22
are
average Current Account balances over the year grew by 24% yoy.
The Corporate Credit portfolio of the Bank comprising advances to
large and midcorporates grew by 68.33% to Rs. 29,026 crores from
Rs. 17,244 crores a year ago. This includes advances at overseas
branches amounting to Rs. 5,381 crores (equivalent to USD 134
million) comprising in main the portfolio of Indian corporates and
their subsidiaries, as also trade finance. Credit exposures are taken
based on risk analyses and mitigation measures, with proposals being
subjected to critical scrutiny by the Bank's Risk Department. Efforts
are made to constantly upgrade the skills required for faster
turnaround of credit proposals and structuring of financial products. In
addition to working capital loans, the Bank also takes long-term
exposures to infrastructure and manufacturing projects set up by
reputed industry groups. Relationship groups in the Bank are
organised with an industry sector focus for better evaluation of
specified risks. The credit policy of the Bank has also put in place
ceilings on exposures to various industries with a view to containing
concentration risk and facilitating portfolio diversification.
Financial Performance:
 Profit after tax up 69% to Rs.1,815.36 crores.
 Net Interest Income up 43% to Rs.3686.21 crores.
 Other Income up 61% to Rs.2,896.88 crores.
 Fee Income up 64% to Rs.2,447.35 crores
 Deposits up 34% to Rs.1,17,374 crores.
23
 Demand Deposits up 37% to Rs.50644 Crores.
 Advances up 61.79% to Rs.81,557 crores .
 Retail Assets up 18% to Rs.16,052 crores.
 Network of branches and extension counters increased from 827.
 Total number of ATMs 3595.
 Net NPA ratio as a percentage of net customer assets down to
0.35% 0.36% from 0.36 %.
 Earning per share (Basic) increased from Rs.31.31 to Rs50.27.
 Proposed Dividend up from 45% to 60%.
 Capital Adequacy Ratio stood at 13.69% as against the minimum
regulatory norm of 9.26%.
Objective of the study:

The main objective of undergoing training of 6 weeks (1oth ,June
2010 to 10th aug, 2010) is to:
 Understand how banking activities actually takes place.
 To gain an insight and in depth knowledge about banking products.
 To know how the other services provided by bank to its customer.
 To learn about corporate banking culture in India.
**********************
24
CHAPTER 2
LITERATURE REVIEW
25
LITERATURE REVIEW
Background :
I have done my training from Axis Bank, Amritsar Branch. I learned
there working and functioning of the bank. Axis bank is one of the
fastest growing banks in India and has extremely competitive and
profitable banking franchise. Axis bank is the first new generation
private sector bank to be established in India under the overall reform
programme initiated by Government of India in 1991.Axis bank
started its operation from 1994.
BUSINESS DESCRIPTION:
The Bank's principal activities are to provide commercial banking
services which include merchant banking, direct finance,
infrastructure finance, venture capital fund, advisory, trusteeship,
forex, treasury and other related financial services. The Bank has 463
branches and 263 extension counters throughout India. During April,
2006 the Bank open-end 1 overseas branch in Singapore.
PROMOTERS:
UTI Bank Ltd. has been promoted by the largest and the best
Financial Institution of the country, UTI. The Bank was set up with a
capital of Rs. 115 crore, with
 UTI contributing Rs. 100 crore,
 LIC - Rs. 7.5 crore
26
 GIC and its four subsidiaries contributing Rs. 1.5 crore each.
 Promoters:

 Unit Trust Of India (UTI)
 Life Insurance Corporation (LIC)
 General Insurance Corporation (GIC)
 National Insurance Company Limited
 New India Assurance Company Limited
 The Oriented Insurance Company Limited
 United India Insurance Company Limited
SUUTI SHARE HOLDINGS-27.33%
Erstwhile Unit Trust of India was set up as a body corporate under the
UTI Act, 1963, with a view to encourage savings and investment. In
December 2002, the UTI Act, 1963 was repealed with the passage of
Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by
the Parliament, paving the way for the bifurcation of UTI into 2
entities, UTI-I and UTI-II with effect from 1st February 2003.
SHARE HOLDING PATTERN:
AS ON 25-05-07
Sr. Name of the No. of Shares Held % Stake
No. Shareholders to Total
A. Promoter Shareholding
1 Administrator of the 7,72,45,070 27.33
Specified Undertaking of
the Unit Trust of India
27
(UTI - I)
2 Life Insurance Corporation 2,92,22,936 10.34
of India
3 General Insurance 1,49,26,224 5.28
Corporation of India and
four PSU Insurance
Companies.
Total Promoter Shareholding A 12,13,94,230 42.95
B. Non-Promoter Holding
4 Indian Financial 3,24,084 0.12
Institutions (IFIs)
5 Mutual Fund 2,36,82,394 8.38
6 Others 2,39,26,557 8.46
(Individuals/Corporate
Bodies/HUF/Trusts/Banks)
Total Non-Promoter Indian 4,79,33,035 16.96
Shareholding B
C. Foreign Shareholding
7 FDI Route GDR Issue 1,11,62,661 3.95
8 Foreign Financial 10,16,51,067 35.96
Institutions (FIIs)
9 NRIs/OCBs 5,08,786 0.18
Total Non-Promoter Foreign 11,33,22,514 40.09
Shareholding C
Total A+ B + C 28,26,49,779 100
COMPANY PROFILE: AXIS BANK

Axis Bank India, the first bank to begin operations as new private
banks in 1994 after the Government of India allowed new private
28
banks to be established. Axis Bank was jointly promoted by the
Administrator of the specified undertaking of the
 Unit Trust of India (UTI-I)
 Life Insurance Corporation of India (LIC)
 General Insurance Corporation Ltd.
Also with associates viz. National Insurance Company Ltd., The New
India Assurance Company, The Oriental Insurance Corporation and
United Insurance Company Ltd.
Axis Bank in India today is capitalised with Rs. 232.86 Crores with
47.50% public holding other than promoters. It has more than 200
branch offices and Extension Counters in the country with over 1250
Axis Bank ATM proving to be one of the largest ATM networks in
the country. Axis Bank India commits to adopt the best industry
practices internationally to achieve excellence. Axis Bank has
strengths in retail as well as corporate banking. By the end of
December 2004, Axis Bank in India had over 2.7 million debit cards.
This is the first bank in India to offer the AT PAR Cheque facility,
without any charges, to all its Savings Bank customers in all the
places across the country where it has presence.
With the AT PAR cheque facility, customers can make cheque
payments to any beneficiary at any of its existence place. The ceiling
per instrument is Rs. 50,000/-.The latest offerings of the bank along
with Dollar variant is the Euro and Pound Sterling variants of the
International Travel Currency Card. The Travel Currency Card is a
signature based pre-paid travel card which enables traveler’s global
29
access to their money in local currency of the visiting country in a safe
and convenient way. The Bank has strengths in both retail and
corporate banking and is committed to adopting the best industry
practices internationally in order to achieve excellence
DETAILED DESCRIPTION OF PRODUCTS AND SERVICES:

PERSONAL ACCOUNTS:
 PRIME SAVINGS ACCOUNT
Axis Bank, we have always strived to pace our products with the
growing needs of our customers. The Prime Savings account has
therefore been created with your specific financial requirements
in mind.
 Wider Accessibility: 500 branches and one of the largest
ATM networks in India.
 Greater Convenience: International Debit Card with
withdrawal limit of Rs 40,000 per day facilitating transfer
of funds, deposits of cash/cheques and payment of
insurance premium (LIC).
 More Comfort: 24 hr Internet Banking and Tele Banking
services
 Enhanced Privileges: provide you a passbook and
monthly statement of account to keep you updated on all
your transactions
 Added Speed: 'At Par' cheque facility, you have the
unique advantage to encash your cheques as a local
30
cheque at more than 330 centers where the bank has a
presence at no extra cost
Other Accounts in this category:
 SALARY POWER
 SMART PRIVILEGE ACCOUNT
 SENIOR PRIVILEGE
 PENSION SAVINGS ACCOUNT
DEPOSITS
 Fixed Deposits
Axis Bank offers a simple reinvestment Fixed Deposits (at very
competitive interest rates), which can be opened with a
minimum investment of Rs 10,000.
 Reinvestment Deposits:
In a reinvestment deposit, the interest accrued to your deposit
at the end of each quarter is invested along with the principal.
The tenure of your deposit must be a minimum of 6 months.
 Automatic Rollover:
As a Fixed Deposit holder, you can avail of the facility for
automatic rollovers on maturity (for both the principal and
interest). You can select this option in the Account Opening
Document (AOD). The options available are:

 RECURRING DEPOSITS
 Power of compounding
31
Axis Bank's Recurring Deposit scheme will allow you with an
opportunity to build up
Your savings through regular monthly deposits of fixed sum
over a fixed period of time.
Features:
 Recurring deposits are accepted in equal monthly
installments of minimum Rs 1,000 and
 Above in multiples of Rs 500 thereafter. The fixed
number of installments for which a
 Depositor can opt are 12, 24, 36, 39, 48, 60, 63, 72, 84,
96, 108 and 120 months.
Transfer of Accounts - a recurring deposit account can be
transferred from one office of
the Bank to another branch.
 Encash 24
The ENCASH 24 (Flexi Deposits) gives you the liquidity of a
Savings Account coupled
with high earnings of a Fixed Deposit. This is achieved by
creating a Fixed Deposit
linked to your Savings Account providing you the following
unique facilities.
LOANS
POWER HOUSE:
Axis Bank's Power Home puts an end to your Real Estate
32
troubles.
Features:
 Attractive interest rates
 Balance Transfer facility
 Doorstep service
 Option to choose from floating rate or fixed rate Free Property
& Personal accident insurance.
PERSONAL POWER:
Features:
 Loans for salaried and self employed individuals
 Special loans for doctors, chartered accountants, engineers,
architects, CS and ICWA .
 Loans are available from Rs 50,000 to Rs 20 lacs
 Repayment tenures from 12 to 60 months
 Attractive interest rates Free personal accident insurance cover
with personal loan
 Loans can be used for any purpose with no questions asked
regarding the end use of the loan A balance transfer facility
available for those who want to retire any higher cost debt
Loans available against repayment track record of any existing
auto, personal or home loan Loans available against proof of life
insurance policy or premium receipts
 Zero balance SB account facility for personal loan customer’s
Simple procedure, minimal documentation and quick approval.
33
ASSET POWER (Loan Against Property)
A take-over of your existing loan with refinancing is also possible
with Asset Power.
Features
 Attractive interest rates
 Balance Transfer facility available with additional finance
 Doorstep service
Four products under Asset Power

 Loan against property - Residential
 Loan against property - Commercial
 Loan for purchase of commercial property
 Take-over of existing loan with additional refinance (Balance
Transfer)
 Lease Rental Discounting (LRD)
CORPORATE BANKING
 Working Capital Finance
. These products are designed to ease the liquidity position of the
client and come with a number of other facilities such as Internet
Banking, Phone Banking etc.
 Trade Services
Axis Bank has emerged as one of the leading banks in providing
trade finance services, providing a gamut of products for both
exports and imports, with dedicated Front-Desk and Specialists,
34
speedy processing of documents and provide comprehensive and
timely MIS.
 Structured Finance
Axis Bank provides tailor made solutions to meet our clients'
requirements, while mitigating the credit and price risk at the
same time.
 Supply Chain Management
Axis Bank provides integrated commercial and financial
solutions to the supply and distribution channels of a corporate.
The products are designed to add value to supply and
distribution channels by providing unique solutions to meet their
working capital requirements.
CAPITAL MARKETS
Debt Solutions
Axis Bank is a leading provider of debt solutions in the form of bond
or debenture issuances and loan syndication. The Bank has
successfully managed various debt issuances of mid and large size
which includes plain vanilla loans or bonds, and structured term loans
to meet the specific requirements of the clients and the projects. The
Bank is the largest bond house in the country and has been ranked first
in respect of various domestic and international league tables in
respect of domestic debt issuances.
Equity Solutions
We are SEBI registered Category I Merchant Banker. The Bank's
Capital Markets Department has developed significant expertise in the
35
area of public or rights issue management, private placement of
equity, overseas fund raising through FCCB and GDR and debt
syndication.
The Bank has acted as Lead Book Running Managers, co-arrangers
and advisors to a number of equity issuances or offers.
Trusteeship Services
Axis Bank Ltd. is a SEBI registered Debenture Trustee in the business
of Debenture Trusteeship, Security Trusteeship, Monitoring Agency
and Facility Agency and predominantly acts as Trustee to privately
placed debt issuances, domestic borrowings and external commercial
borrowings.
At present the aggregate value of the Trusteeship portfolio is
approximately Rs 1, 00,000 crores. The Trusteeship Group presently
services over 150 clients including leading public and private sector
corporate as well as Banks and Financial Institutions including
international funding agencies in respect of various debt instruments
issued within the country and also for various secured Foreign
Currency Convertible Bonds and External Commercial Borrowings.
EDepository Services
With the introduction of settlement on T+2 basis, instruction for
delivery of securities to broker's account is required immediately after
sale of securities. Hence time available for submission of delivery
instructions is limited. Axis Bank now permits submission of delivery
instructions in electronic form using Internet based service called
36
Speed-e. Physical delivery instructions need not be submitted in case
you are submitting the instructions on Speed-e.
CAPITAL MARKET FUNDING:
Axis Bank is a clearing bank for following exchanges:
 National Stock Exchange of India Limited (NSE)
 The Stock Exchange, Mumbai (BSE)
 National Commodity and Derivative Exchange (NCDEX)
 Multi Commodity Exchange (MCX)
 All the Settlement related activities for these exchanges are

carried out through its Capital Market Division, Fort Branch, and
Mumbai.

PROMOTIONAL STRATERGIES:
In early 1950's most of the markets were choking with surplus

products on offer, defying the theory "the best quality will always
sell". The emergence of Branding as a value in offering has kept many
organizations leaders, and in survival. Branding is termed as a part of
offering, created in the mind of customer and consumer of superior
values that he or she perceives and ready to pay for. The brand can be
associated with superior product, superior services, superior sales after
services, or easy access. In today's era with increasing competition, is
that not important enough to revisit Brand as a marketing offering
(Product or Service).
37
BRAND NAME:
UTI has officially announced the change of its name to ‘Axis Bank’.
The awareness campaign titled ‘UTI Bank is now Axis Bank;
everything is the same except the name’, has been created by O&M
and is the brainchild of Sumanto Chattopadhyay.
The decision to re-brand the bank emanated from the need to move
out of a scenario of brand confusion that is created by several
shareholder-unrelated entities using the UTI brand. On the creative
point of view, the change of name from UTI Bank to Axis Bank is
precisely just a name change. Everything else about the brand remains
the same. Axis is a strong name with an international aura to it. It is
very much in keeping with UTI’s success story in the private banking
arena.
MARKETING INITIATIVES:
On the marketing initiatives, a multimedia campaign was unfolded on
August 1 that will go on for the next few weeks. It seeks to reassure
customers that the change of name will in no way affect the services
offered by the bank.
On the thought process the creative platform adopted for the name
change is based primarily on twins -- siblings whose names are
different, but are identical in every other way. This campaign will run
on
 Television
 Outdoor
38
 Print
 Radio and other 360-degree media.
Some interesting innovations are planned in the print medium. On
radio, the name change is being expressed in a slightly different
manner, in keeping with the nature of the medium.
BROADSHEET WAY:
The first campaign that was featured was a false cover page for Mid-
Day going the broadsheet way. The campaign very much focused on
the idea on the awareness of the bank changing its name to ‘Axis
Bank’.
Television is given priority as it gives the maximum reach among the
mass media channels. Besides the mass media channels, the 2,500-odd
ATM locations is also being used to convey the name change
message. And of course, the signages of the 600 or so branches will
also change to reflect the new name.
LOGO DESIGN:
The logo design of Axis Bank is based on the letter ‘A’. It is a
contemporary, universal and solid design that retains the burgundy
color of the original UTI logo as a link to its heritage
EXISTING MARKETING STRATERGIES TO GAIN UPPER
MARKET SHARE:
Going forward, the Bank will continue to derive benefit from the
infrastructure created over the years and pursue a strategy of profitable
growth through stronger corporate relationships and an accelerated
39
retail customer expansion program me driven by the Bank’s multiple
channels. The Bank continues to identify new thrust areas to sustain
its growth, and these include:
 Growth in credit to the SME and agriculture sectors that will be
driven by a network of rural and semi urban branches supported
by organizational reinforcement in the form of SME cells and
agriculture clusters.
 Reinforcement of the international remittance business. The
Bank has already tied up with various banks and exchange
houses in the Gulf for tapping the high-volume remittance
business emanating from this region.
 New initiatives such as Wealth Management will enable the
Bank to advice and to cross-sell third party products to high net-
worth customers.
 An expansion in the overseas branch and representative office
network, commencing with the first branch in Singapore, will
create opportunities for cross-border trade finance, syndication
of debt and NRI business.
MAJOR COMPETITORS
MAJOR COMPETITORS AND THEIR MARKET SHARE:
Market Total
Name of the
Cap Asset Net Sales Net Profit
Bank All values in Cr
99,998.5 560,607.2
ICICI BANK 2 2 22,994.29 3,110.22
HDFC BANK 39,473.0 141,941.1 6,889.02 1,141.45
40
2 3
22,071.8 119,388.4
AXIS BANK 9 2 4560.4 659.03
KOTAK 26,041.1
MAHINDRA 8 30,866.31 1354.1 141.37
YES BANK 5,220.60 6,728.34 190.18 55.32
JK BANK 3,668.88 49,435.44 1,899.33 274.49
FEDERAL
BANK 2,987.01 34,371.98 1,436.53 225.21
KARNATAKA
BANK 2,262.76 27,445.55 1,256.25 177.03
CENTURION
BANK 6,002.76 31,711.06 1,256.25 121.38
INDUS IND 1,624.63 30,039.04 1,188.28 38.81
Comparison of these top 10 private banks :
On the basis of their market Capitalization
Market Cap (Rs. cr)

1% 1%1%
3% 2%
3%
ICICI Bank HDFC Bank On the basis
Kotak Mahindra Axis Bank
11% Centurion Bank Yes Bank of their Total
JK Bank Federal Bank
47%
Karnataka Bank IndusInd Bank
Assets:
13%
19%
On the basis
of their Net Profit:
41
Net Profit (Rs.Cr)
2% 1%
3%2%
3% ICICI Bank HDFC Bank
4% Axis Bank JK Bank
Federal Bank Karnataka Bank
5%
Karur Vysya Kotak Mahindra
Centurion Bank Yes Bank
11%
51%
19%
On the basis of their Sales:
Net Sales (Rs. Cr)

3% 3% 0%
3%
3% ICICI Bank HDFC Bank
3% Axis Bank JK Bank
Federal Bank Kotak Mahindra
4%
Centurion Bank Karnataka Bank
IndusInd Bank Yes Bank
11%
53%
16%
COMPETETIORS
1. ICICI Bank Ltd.

2. HDFC Bank Ltd.
3. State Bank of India
4. HSBC Bank
5. RBS (Royal Bank of Scotland)
6. Maharashtra Bank of India
7. Canara Bank
8. Andhra Bank
42
9. IDBI bank
10. Bank of India
11. Punjab National Bank
12. Central Bank
13. Allahabad Bank
14. ING Vysya
15. Centurion Bank
GOVERNMENT REGULATION IN BANKING:

Banking Regulation Act, 1949
 As per Section 5(c) of Banking Regulation Act, 1949 a "Banking
Company" means any company which transacts the business of
banking in India.
 Any company which is engaged in the manufacture of goods or
carries on any trade and which accepts the deposits of money
from public merely for the purpose of financing its business as
such manufacturer or trader shall not be deemed to transact the
business of banking within the meaning of this clause."
 As per Section 5(b) of Banking Regulation Act, 1949 , banking
means the accepting, for the purpose of lending or investment, of
deposits of money from the public, repayable on demand or
otherwise, and withdrawals by cheque, draft, order or otherwise.
 As per Section 5(d) of Banking Regulation Act, 1949, company
means any company as defined in Section 3 of the Companies
Act, 1956 and includes a foreign company within the meaning of
Section 591 of that Act.
43
 As per section 51 of Banking Regulation Act, 1949, certain
provisions of the Banking Regulation Act are also applicable to
the State Bank of India, any corresponding new bank, a regional
rural bank and any subsidiary bank. "Corresponding new bank"
has been defined under clause (ee) of section 2 of the DICGC
Act to mean a corresponding new bank constituted under the
Banking Companies (Acquisition and Transfer of Undertakings)
Acts of 1970 or 1980.
National Housing Bank Act, 1987

Section 2(d) of the National Housing Bank Act, 1987 defines a
housing finance institution as under:
"Housing finance institution includes every institution, whether
incorporated or not, which primarily transacts or has as one of its
principal objects, the transacting of the business of providing finance
for housing, whether directly or indirectly"
Reserve Bank of India Act, 1934

Section 2(d) of the National Housing Bank Act, 1987 defines a
housing finance institution as under
"Financial Institution" means any non-banking institution which
carries on as its business or
 the financing, whether by way of making loans or advances or
otherwise, of any activity other than its own;
44
 the acquisition of shares, stock, bonds, debentures or securities
issued by a government or local authority or other marketable
securities of a like nature;
 letting or delivering of any goods to a hirer under a hire-
purchase agreement as defined in clause (c ) of section 2 of the
Hire-Purchase Act, 1972;
 the carrying on of any class of insurance business;
 managing, conducting or supervising, as foreman, agent or in
any other capacity, of chits or kuries as defined in any law which
is for the time being in force in any State, or any business, which
is similar thereto;
 collecting, for any purpose or under any scheme of arrangement
by whatever name called monies in lump sum or otherwise, by
way of subscriptions or by sale of units, or other instruments or
in any other manner and awarding prizes or gifts, whether in
cash or kind, or disbursing monies in any other way, to persons
from whom monies are collected or to any other person.
As per Section 45-I (f) of the RBI act, "non-banking financial
company" means: - a financial institution which is a company;
a non banking institution which is a company and which has as its
principal business the receiving of deposits, under any scheme of
arrangement or in any other manner, or lending Tiny manner;
CAPITAL MANAGEMENT
The Bank believes in the continual enhancement of shareholder value
by an efficient use of available capital in a manner that leads to a high
45
return on equity. In this sense, the Bank seeks to be protective of its
capital.
 The Bank continued to attract investor interest from domestic
and foreign institutional investors, leading to a very visible
increase in trading volumes and price.
 On the successful conclusion of the GDR offering, the Bank
mobilized Rs. 1,122 crores (equivalent to US Dollars 257.03
million).
 In addition, the Bank also placed subordinated bonds of Rs.
1,000 crores in the market in order to raise Tier II capital to the
extent eligible.
 The Bank is focusing on developing an asset structure that was
sensitive to the importance of increasing the proportion of low
risk weighted assets, in order that capital is more efficiently
deployed.
PREPAREDNESS FOR IMPLEMENTATION OF THE BASEL
II ACCORD
The Bank is in the process of identifying an appropriate software
system and data management solution for a phased adoption of the
Basel II framework in the area of credit risk.
In the first instance, the Bank is in a position to
 adopt the Standardised approach for credit risk and it is
strengthening the internal credit rating architecture and archiving
the internal rating migration data to prepare for an eventual
migration to the Internal Rating Based (IRB) approach.
46
 The Bank is in readiness to calculate capital charge on
operational risk, under both the Basic Indicator approach as well
as the Standardised approach, and has mapped its activities to
the eight business lines defined in the Basel II Accord.
 The Bank has also undertaken internal studies on several lines of
business for an evaluation of the risk profile, capturing of losses
incurred and identifying key risk indicators (KRIs).
RETAIL BANKING
With a view to attaining an increasingly significant position in the
burgeoning retail financial services sector in the country, the Bank has
continued to provide a sustained thrust to retail banking through a
continuously expanding network and a growing sales force with
customer relationship skills, that has enabled the distribution of a wide
range of products to a fast expanding customer base.
The key driver underpinning the profitability of the retail banking
business has been the Bank’s customer-centric vision, manifested in
the
 strategic interplay of product differentiation and innovation on
the one hand
 customer segmentation on the other, where the constant
endeavour is to introduce
 Introduction of customized products and services to cater to the
specific needs of different customer segments.
47
This has resulted in a substantial growth of retail banking business
during 2005-06
The thrust on customer segmentation has been a strategic success, as

evident from the strong business growth across various customer
segments during 2005-06.
ATM:
The Bank has also continued its earlier pioneering efforts in
persuading other banks to participate in ATM sharing, and presently
offers the largest available access to over 18,000 ATMs in the country
to its customers, based on alliances with other banks and multi-bank
shared payment
Networks. The Bank has also provided value additions on its versatile
ATM machines, including LIC premium payment and telephone bill
48
payments
for service providers like MTNL and BSNL, as also mobile banking
services and mobile refill facilities for Airtel, Hutch, Orange and Idea
cellular service providers. The Bank has tied up with UTI Mutual
Fund to launch a new service that will help customers of the Bank to
subscribe as well as redeem UTI Mutual Fund schemes through the
Bank’s nationwide network of 1,891
ATMs.
The Bank’s future thrust is on:
 marketing approach
 product innovation
 risk management systems
 Financial Advisory
49
 Rigorously designed back-office processes contribute to the
strength of the Bank’s retail lending strategy
 Wealth Advisory Services
INTERNATIONAL BANKING
The Bank continued to provide a business focus on tapping business
from the NRI community by offering a wide range of banking,
investment and advisory services to them. During the year, the
aggregate NRI deposits grew by 48.37% from Rs. 1,134.87 crores to
Rs.1, 683.84 crores with the NRI savings bank balances growing by
115.90% from Rs. 295.79 crores to Rs. 638.60 crores. During the
same period, the number of savings bank NRI accounts grew by
82.61% from 27,018 to 49,337. The accelerated growth, both in terms
of account acquisition and savings bank balances of NRI business, is
attributable to
 Initiatives that have focused on deepening of existing
relationships and a simultaneous expansion of the customer
base, driven by alliances with various banks and exchange
houses in the Gulf region.
 The Bank has also partnered with the Ministry of Overseas
Indians to offer an Internet based electronic remittances portal to
facilitate remittances from NRIs. The portal also provides
information services relating to investments in financial
markets, tax consultancy and investments in real estate.
50
 Globalisation of financial markets across economies and the
significant increase in international trade in recent years
provides opportunities for the Bank to render banking and
related services through a presence in overseas centers.
Keeping this in view, the Bank has embarked on an active
international expansion programme in key Asian markets.
 The Bank has since received a license and set up a branch in
April 2006 in Singapore.
This Bank’s first overseas branch.
 The Bank has also obtained the necessary approval from the
regulators in China for setting up a Representative Office in
Shanghai and is now in the process of completing the related
formalities for opening an office.
CORPORATE BANKING
Corporate Banking offers various loan and fee-based products and
services to large corporate, SMEs and to the agriculture sector. The
Bank continued with the strategy of diversifying its customer base,
including deeper penetration in higher yielding segment, channel
Finance, SMEs and agricultural finance segments. In order to give an
impetus to the SME segment and to agricultural lending, there was a
significant organizational reinforcement by setting up
 SME cells
 Adopting a cluster-centric approach for agricultural lending in
areas with rich potential for such activity.
51
In this direction 6 state-specific and 4 city-specific SME cells were set
up. In the area of agricultural lending, 9 agricultural clusters were
formed which focused on agricultural lending.
The Bank will continue to:
 Open more rural branches as also set up agricultural clusters to
boost its agricultural business.
 Create backward and forward linkages for all players in the
agriculture business chain so as to provide composite financing
across the food chain.
The syndication and underwriting of corporate loan activities of the
Bank took off during the year. The Bank experimented with new
delivery models for credit, including setting up low cost rural ATMs
at Anand, in order to provide convenient and low cost transaction
services to the suppliers of milk to the Co-operative. Such application
of technology provides customer convenience as well as product
innovation.
CAPITAL MARKETS
The Bank’s Capital Markets business encompasses investing and
trading in corporate debt and equity, and providing several other fee-
based services like
 Capital restructuring,
 Placement
 Syndication,
 Trusteeship services,
 Management of public
52
 Rights issues,
 Appraisals
 Advisory services,
 Depository related services,
 Portfolio management services,
 Capital market related services.
Future Strategies:
 Project advisory services with a focus on infrastructure and other
core sectors.
 Financial advisory skills with technical advisory skills by
forming alliances.
The Bank also maintains an investment and proprietary trading
portfolio in corporate bonds and equities.
SAILIENT FEATURES:
 Today 14.6% of our customers are registered for mobile
banking. The Bank aims to be a significant player in the cards
business.
 The debit card base of the Bank grew to 40 lacs during the year
from 30.3 laces.
 The Bank was the first Indian bank to introduce the travel
currency card, a foreign denominated pre-paid card, which is
positioned as a convenience alternative to the travelers’ cheque.
The card is issued in five currencies:

 U.S. Dollar,
53
 Australian Dollar,
 Canadian Dollar,
 Pound Sterling
 Euro on the VISA flag platform.
During 2005-06, foreign currency sales by the Bank through the
travel currency card exceeded US Dollars 63 million.
The Bank is also the first to introduce
 Remittance Cards, which changes the way inward remittances,
are sent to India.
 Direct remittances are facilitated via tie-ups with major Banks in
the US, UK, Europe and South Asia.
 Rewards Card, a pre-paid Rupee card for corporate to facilitate
quick payments to their employees, agents and distributors.
 As on 31st March 2006, the Bank has installed 21,084 POS
terminals, as against 12,067 POS terminals at the end of the
previous year.
The growth of retail and consumer lending in India must be seen as
arising from a strong growth in incomes amongst the middle class and
the more affluent segments, leading to changes in consumer behavior.
As the demographically induced shift is structural rather than cyclical,
it is likely to sustain over the medium term and beyond, and
constitutes the rationale for the growth in retail lending.
Key Challenge Areas
 Highly Personalized and Customized Services.

 Personal relationship driving the business.
54
 Evolving Client Profile.
 Client Involvement Level.
 Passion Investment (Philanthropy and Social Responsibility).
 Limited Leveraging Capabilities of Technology (as an enabler).
 Technical Architecture and Technology Investment.
 Intricate Knowledge of Cross-functional Doman
CHAPTER 3
RESEARCH METHODOLOGY
55
RESEARCH METHODOLOGY
Procedure
 For this study, a structured questionnaire was prepared which
contained both open ended and close ended questions. The
questionnaire contained multiple choice questions dichotomous
questions and questions on a liker scale.
Research Plan
 The research design is exploratory in nature. The established
objectives were kept in mind during the study. For the purpose
of research, study of the consumers holding credit cards was
done.
Data Collection
 The findings of this study are based on the information
collected through primary data i.e. the information was
collected directly from the respondents. Banks brochures have
been consulted and various bank sites are referred to as
secondary source of information.
Sample Plan
 Sample Size : 120 Credit Cardholders
 Sample Unit : Credit card holders of Private and
Public Bank.
56
Research Methodology:
The method adopted to carry out this report was based on both
the primary and secondary sources.
Primary sources:
 Interaction with the existing employees and deputy manager.
 Personal interaction with the customers visiting to the bank.
Secondary sources:
 Manuals of the bank.
 Websites
 Journals
 Circulars
57
CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION
58
DATA ANALYSIS AND INTERPRETATION
Easy Credit Card:
What is Easy Credit Card?

A Credit Card that is ...
Easy for customers to get!
Easy for us to sell!
Why is it “Easy” for the Customer?

 Flexible Credit Limit (Up to 80% of the FD amount)
 High Cash Withdrawal Facility
 Minimum Documentation (No Income Proof/KYC required)
 Fast Delivery of the Card
 Substantially Lower Interest Rate of 1.95% p.m.
 Guaranteed Approval
 Free Credit Period of 20-50 days
 Comprehensive Insurance
 Attractive Reward Points
 Other benefits of a regular credit card
Easier than Other Modes of Payment:
Easier than Other Credit Cards

 Guaranteed Approval
59
 No Income Proof required
 Lower interest rate
 Credit Limit of choice
 Higher Cash withdrawal facility
Easier than Debit Cards

 Interest free credit period of up to 50 days
 Higher Insurance Package
 Ease of Online & MOTO transactions
Easier than O/D against FD

 Interest free credit period of up to 50 days
 Reward Points
 Complimentary Insurance
 Record of transactions
Easier than Cash

 Convenience of Plastic
 Complimentary Insurance
 Reward Points
 Record of transactions
Variants:
Available in three variants:
 Easy Platinum Premium (In sourcing locations only)
 Easy Platinum
 Easy Gold
Pricing:
60
Annual Fee Waiver
Type Joining Fee Annual Fee
for Year 2
Platinum
Premium 5,000 1,000 Customer Spends
> Rs.2,00,000 in Year
1
Customer Spends
Platinum 1,000 500 > Rs.2,00,000 in Year
1
100 Customer Spends

Gold Nil (Two Years > Rs. 50,000 in One
onwards) Year
* Annual Fee can be adjusted against Reward Points
Easy Platinum Premium:
 Platinum Comprehensive Insurance Cover

 Fuel savings of 2.5% at All Petrol Pumps
 Attractive Rewards Program
 Free Espirit watch worth Rs.6,000Attractive
Platinum Preferential Features
 Chip Card for Additional Security
61
 Complimentary Priority Pass Membership
 International Concierge Services
 Exciting shopping offers
Platinum Standard Features
 Low Interest Rate of 1.95% p.m.

 Credit Limit of Choice
 High Cash Withdrawal Limit of 40% of Credit Limit
 Balance Transfer Options
Easy Platinum:
 Comprehensive Insurance Cover

 Fuel savings of 2.5%at ALL Petrol Pumps
Platinum Preferential Features:

 Chip Card for Additional Security
 Complimentary Priority Pass Membership
 International Concierge Services
 Exciting shopping offers
Standard Features:
62
Easy Gold:
 Comprehensive Insurance Cover

 Fuel savings of 2.5%at ALL Petrol Pumps
Standard Features:

Process Simplified:
Step 1
Crédit Card Application Form

Letter of Lien
Only One Single Application
Addendum to Credit Card No
Form
Application Form
Draft Letter
Step 2
Separate KYC for Easy Credit

Double KYC No
Card
63
Step 3
FD receipt to remain with the

customer
FD retained at the branch Only photocopy to be
No attached
Lien marked centrally on
Finacle
Step 4
Customer signature to be
Customer signature on form to
No verified by Branch head/
be verified by Branch heads
BSO/BSM
Step 5
Sent to customer in Courier

Card dispatched to Branch serviceable areas
No Sent to branch in Courier non-
serviceable areas
Application Processing- Existing FD Customers:
Application Pickup
 Easy Credit Card App Form filled
 Copy of FD receipt attached
 No Additional Documents
At Branch
 Application Signed-off by Branch head/ BSO / BSM
 Lien Stamp on FD by any Branch official–Original returned to
customer
64
CC-APU
 Centralized Lien marking
 Data Entry , Card & Limit Setup
 No CIBIL, No FV, No TV
Dispatch
 Direct to customer in Courier serviceable areas
 To branch in Courier non-serviceable areas
Application Processing -New FD Customers:
Application Pickup
 Easy Credit Card App Form filled
 FD Form filled with KYC & PAN only by BDE/Any Branch Staff
At Branch
 Sign-off by Branch head/ BSO/ BSM
CPU-Mumbai
 FD Data Entry
 FD Account No. entered on Easy Card Application Form
CC-APU
 Centralized Lien marking
 Data Entry , Card & Limit Setup
65
 No CIBIL, No FV, No TV
Dispatch
 FD & Card dispatched together
 Direct to customer in Courier serviceable areas
 To branch in Courier non-serviceable areas
Documentation:
Existing FD Customers:
 Easy Card Application Form
 Photocopy of FD Certificate with Notification of Lien as follows:
“Lien marked for Issuance of Easy Credit Card” To be written,
signed & stamped by any Branch Official on the front side of the
FD receipt
 FD Certificate with notification returned to customer
 Most Important Document (MID)
New FD Customers:
 Easy Card Application Form
 Duly Completed FD Application Form (ONLY by BDE/Any
Branch Staff)
 Most Important Document (MID)
66
************************
Loan Assessment:
Types of Loan:
 Home loan
 Personal Loan
 Loan Against Property
 Auto loan
 Agriculture Loan
 Education Loan
Home Loan:
Self Employed
Criteria Salaried Individual Professionals
Individuals
Min. work exp 2 (3 if current
3
(Years) employment <1 year)
67
Min net income
15000pm 1.50 lacs pa
(Rs.)
>24 ~ <= than

Min ~ Max age
superannuation at >24 ~ <= 65 at loan termination
(Years)
loan termination
Min ~ Max Maximum
Maximum 240 Maximum 240
Tenor (Months) 240
Maximum LTV 80%
Clubbing of
Allowed for spouse only
Income
Pre payment
NIL
penalty
Processing fee 1% of loan amt + 10.30% Service Tax as applicable
Other Products / Variants

Takeover of
existing HL
from other
Allowed
financier
(Balance
Transfer)
Refinance
Allowed for properties purchased in last 6 months
Option
Documents required for Home Loan:
Proof of Identity, Signature & Age:
 Passport
 Voter's Card
68
 Driving License
 PAN card
 Photograph
Proof of Residence:
 Ration Card
 Passport
 Latest Electricity Bill
 Latest Telephone Bill
 Latest Credit Card Bill.
Proof of Income:
 Latest 3 salary slip showing all deductions

 IT Returns
 Computation of income
 Balance Sheet and P/L A/c for the last 2 years certified by a C.A.
Bank Statement:
 Last 6 months where salary/income is credited
Proof of Qualification:
 Degree / Diploma - proof of professional qualification
Interest Rate:
Home loan amount Applicable rate of interest
69
Up to Rs. 30 Lacks 9.00% p.a
Above Rs. 30 Lacks 9.50% p.a.
Other terms & conditions:
 The property should be located within 50 Km radius of nearest

Branch/RAC.
 Properties under HUF, Properties inherited under Hindu succession
act, Godowns, Factories & Hospitals, Cinema Halls, Restaurants,
Banquet Halls, and Schools will not be financed under the scheme.
 For Purchase of Residential Plots within Municipal / Government
approved layouts only. Agricultural land, commercial plots,
properties under HUF, properties inherited under Hindu succession
act, plots under litigation and acquisition by Public authorities will
not be financed under plot loan scheme.
 Loan against property (LAP) will be offered only against fully
constructed properties.
Personal Loan:
For Salaried Individual:
Criteria Salaried Individual Normal
70
Interest rate as per category As per category grid
Min. work exp (years) 2
Min net income (Rs. p.m.) 15,000
> 21 & < superannuation at loan

Min ~ Max age
termination
1.25- 15 lakes (1.25 lakes loan is only

Min ~ Max loan amt (Rs.) available for customers having salary
power relationship)
12 ~ 60 (For CAT C and D employees

Min ~ Max Tenor (months)
maximum tenor is 48 months)
Security/Collateral/Guarantor Optional
Cat A & B - Last 3 months

Banking relationships
Cat C & D - Last 6 months
Phone landline / mobile / WLL mandatory
Processing fee 2% of loan amt

Max loan =(Net monthly income -
obligations) x Multiplier. Multiplier
Eligibility calculation
varies from 5 to 13 depending upon
tenure.
Residence Present residence => 6 months
Salaried Individual Prof (MBA,

Criteria
Engineer, Architect, CA, CS, ICWA)
Interest rate as per category As per category grid
71
Min net income (Rs. p.m.) 15,000
> 21 & < superannuation at loan

Min ~ Max age
termination
1.25 - 15 lakhs (1.25 lakh loan is only

power relationship)
Min ~ Max Tenor (months) 12 ~ 60
Cat A & B - Last 3 months

Banking relationships
Cat C & D - Last 6 months
Max loan =(Net monthly income -

tenure.
Degree / Diploma - proof of professional qualification
Criteria Salaried Doctors
Doctor in Cat B/C/D at a min of

Interest rate as per category
MBBS/BDS/ MS/MD = Cat B rate
72
Min net income (Rs. p.m.) 15,000 (gross)
Min ~ Max age >24 and <65 at loan termination
1.25 - 15 lakhs (1.25 lakh loan is only

power relationship)
Min ~ Max Tenor (months) 12 ~ 60
Banking relationships Last 6 months
Max loan = (Gross monthly salary -

tenure.
Degree, Registration with respective

state medical councils Or Dentists
Proof of Qualification
Association.
Documentation:
Documents Required
Proof of Identity, Signature Passport/ Voter's Card/ Driving License/

& Age PAN card & Photograph.
73
Latest bill of landline/ mobile/ WLL stating
Proof of Telephone Bill
name of borrower or address of borrower.
Ration Card/ Passport/ Latest Electricity
Proof of Residence Bill/ Latest Telephone Bill/ Latest Credit
Card Bill.
Latest salary slip showing all deductions
Proof of Income and Last 2 years Form 16 along with
current dated salary certificate
Bank Statement / Pass
Cat A & B - Last 3 months, Cat C & D -
Book where salary is
Last 6 months
Credited
Interest Rate Grid:
Interest Rate Grid

Personal Loans ROI (only Fixed)
Salaried - Cat A 15.00%
Salaried - Cat B 17.00%
Salaried - Cat C 19.00%
Salaried - Cat D 21.00%
Loan against Property:
Criteria Salaried Individual
74
Min 1 Year If Total Exp 2 Or (3 If Current
Work Experience (Years)
Employment <1 Yr)
Min Net Income (Rs.) 7500 Per Month
>24 ~ <= Than Superannuation At Loan

Min ~ Max Age (Years)
Termination
Min ~ Max Tenor Residential Property Up To 180 Months,

(Months) Commercial Property Up To 120 Months
Residential Property Up To 60%,

Maximum LTV
Commercial 50%, Commercial Purchase 80%
2% Will Be Charged If The Amount Exceeds

Pre Payment Penalty 25 % Of The Principle Outstanding During A
Quarter, Otherwise No Penalty.
1% Of Loan Amt + Service Tax As

Processing Fee
Applicable
Takeover Of Existing
Mortgage With Additional Allowed
Refinance
Criteria Professionals
Work Exp (Years) Min 3 If Doctor Else 4
75
Min Net Income (Rs.) 1.50 Lacs Per Year
Min ~ Max Age (Years) >24 ~ <= 65 At Loan Termination
Min ~ Max Tenor Residential Property Up To 180 Months,

(Months) Commercial Property Up To 120 Months

Maximum LTV Commercial 45%,
Commercial Purchase 75%

1% Of Loan Amt + Service Tas As

Processing Fee
Applicable
Mortgage With Additional Allowed
Refinance
Criteria Self Employed Individuals
Work Exp (Years) Min 3
76
Min Net Income (Rs.) 1.50 Lacs Per Year
Min ~ Max Age (Years) >24 ~ <= 65 At Loan Termination
Min ~ Max Tenor Up To 120 Months Irrespective Of Property

(Months) Type

Maximum LTV
Commercial 45%, Commercial Purchase 70%

1% Of Loan Amt + Service Tax As

Processing Fee
Applicable
Mortgage With Allowed
Additional Refinance
Documents required for Loan against property:
For Salaried Individual:
77
Proof Of Identity, Passport/ Voter's Card/ Driving License/ PAN
Signature & Age Card & Photograph.
Ration Card/ Passport/ Latest Electricity Bill/

Proof Of Residence
Latest Telephone Bill/ Latest Credit Card Bill.
Proof Of Income Latest 3 Salary Slip Showing All Deductions
Last 6 Months Where Salary/Income Is

Bank Statement
Credited
Proof Of Qualification N/A
For Professionals:
Proof Of Identity, Passport/ Voter's Card/ Driving License/ PAN


Proof Of Residence
IT Returns, Computation Of Income, Balance

Proof Of Income Sheet And P/L A/C For The Last 2 Years
Certified By A C.A.

Bank Statement
Credited
Degree / Diploma - Proof Of Professional
Proof Of Qualification
Qualification
For Self Employed Individuals:
78
Proof Of Identity, Passport/ Voter's Card/ Driving License/ Pan

Proof Of Residence
It Returns, Computation Of Income, Balance

Proof Of Income Sheet And P/L A/C For The Last 2 Years
Certified By A C.A.
Bank Statement
Credited
Proof Of Qualification N/A
Other Terms & Conditions:
 The property should be located within 50 km radius of nearest

branch.
 Properties under HUF, Properties inherited under Hindu Succession
Act, Godowns, Factories & Hospitals, Cinema Halls, Restaurants,
Banquet Halls, and Schools will not be financed under the scheme.
 For Purchase of Residential Plots within Municipal / Government
Approved Layouts only Agricultural Land, Commercial Plots,
Properties Under HUF, Properties Inherited Under Hindu
Succession Act, Plots Under Litigation and Acquisition by Public
Authorities will not be financed under plot loan scheme.
 Loan against property (lap) will be offered only against fully
constructed properties.
 No lap will be offered against plot of land
Interest Rate Grid:
79
Personal Loan Interest Rate of Interest
Residential Property 12.75%
Commercial Property 13.75%
Auto Loan:
Category Grid
Category A Maruti 800, Omni Van, Matiz
(Upto 5 lakh)
Category B Alto, Wagner, I10, spark, Swift, Indica Vista,
Palio, Getz, a-star, Zen
80
(Upto 10 lakh)
Swift Dezire, Verna, Esteem, Honda City,
Category C
Acent, Verna, Fista, Indigo CS, Optra,
Scorpio,Logan
(More Than 10 Lakh)

Category D
Safari, Corela, Endeavour, Optiva, Skoda,
Criteria Salaried
Min 21 Years At Sanction To Maximum 58

Age
Years At The Time Of Loan Maturity
Loan Amount Minimum Rs. 100,000
Tenure 1 - 7 Yrs
LTV Up To 85% Of On Road Price*
Gross Salary Of Rs. 1 Lac P.A. For Cat A/B

Income Norms
Cars & Rs 2 Lacs P.A. For Cat C/D Cars
Work-Experience Minimum 2 Years Of Total Employment
81
Landline / WLL Phone At Residence. In Case
Telephone No Phone At Resident Post-paid Mobile
Connection With Resident Address Required.
Foreclosure 4% + Principal Outstanding
Minimum Of Rs 2500 For Cat A Cars, Rs. 3000

For Cat B & C Cars And Rs 3500 For Cat D
Processing Fee
Cars (Plus Upto 1% Of The Loan Amount At
The Discretion Of The Branch Manager)
3 Times Of Annual Gross Or 30 Times Of Avg

Eligibility
Net Salary Of 3 Months. EMI Must Not Exceed
Calculation
50% Of Net Salary
Criteria Self-Employed
Min 21 Years At Sanction To Maximum 65 Years

Age
At The Time Of Loan Maturity
Tenure 1 - 7 Yrs
LTV Up To 85% Of On Road Price*
Gross Income Of Rs. 60,000 P.A. For Cat A/B

Income Norms Cars & Rs 1 Lac P.A. For Cat C/D Cars (Gross
Income : N.P After Tax & Depreciation)
Work-Experience Minimum 3 Years In Business
82
Landline / WLL Phone At Residence. In Case No
Telephone Phone At Residence Postpaid Mobile Connection
With Residence Address Required.

For Cat B & C Cars And Rs 3500 For Cat D Cars
Processing Fee
(Plus Upto 1% Of The Loan Amount At The
Discretion Of The Branch Manager)
6 Times Gross Income P.A. (Gross Income = Net

Eligibility
Profit + 50% Of Depreciation For The Last
Calculation
Financial Year.)
Criteria Partnership Firms

Min 21 Years At Sanction To Maximum 58 Years
Age At The Time Of Loan Maturity For Loan Executing
Partner.
Tenure 1 - 7 Year
LTV Up To 85% Of On Road Price
Gross Income Of Rs. 60,000 P.A. For Cat A/B Cars

& Rs 1 Lac P.A. For Cat C/D Cars (Gross Income:
Income Norms
N.P After Tax & Depreciation). Min Turnover Of
Rs 4.5 Lacs
Work-Experience Minimum 3 Years In Business
83
Landline / WLL Phone At Resident. & Office For
Loan Executing Partner. In Case No Phone At
Telephone
Resident, Post-Paid Mobile Connection With
Resident. Address Is Required

For Cat B & C Cars And Rs 3500 For Cat D Cars
Processing Fee
(Plus Upto 1% Of The Loan Amount At The
Discretion Of The Branch Manager)
6 Times Gross Income P.A. (Gross Income =

Eligibility Share In Profit + Salary + Interest On Capital +
Calculation 50% Of Depreciation For The Last Financial Year)
(To The Extent Of His Share In Partnership)
Criteria Private & Public Ltd. Companies
Min 21 years at sanction to Maximum 65 years at

Age the time of loan maturity for the loan executing
director/authorized signatory
Loan amount Minimum Rs. 100,000
Tenure 1 - 5 yrs
LTV Up to 85% of On road price*
Min Turnover of Rs. 2 Crore and Minimum Net

Income Norms Profit of Rs 50 Lacs. (No Cash Loss in the last 2
yrs)
84
Work-experience Minimum 3 years in business
Landline / WLL phone at Resident & Office for

loan executing director/authorized signatory. In
Telephone
case no phone at Resident, post-paid mobile
connection with Resident Address is required
Foreclosure 4% + principal outstanding
Minimum of Rs 2500 for CAT A cars, Rs. 3000 for

Cat B & C Cars and Rs 3500 for Cat D cars (plus
Processing Fee
upto 1% of the loan amount at the discretion of the
Branch Manager)
Eligibility
6 times Avg. Net Profit of the Last 2 Years
calculation
Documents required:
For Salaried:
Passport / Voter’s Card / Driving License

Proof of Identity
with Photograph/ PAN card
Latest salary slip showing all deductions
AND Latest Form 16 / Income Tax Return
Proof of Income
(Form 16 FYE March should be available
June onwards)
Ration Card/Latest Electricity Bill/Latest
Address Proof (of the
Telephone Bill/Passport/Latest Credit Card
residing city)
Bill/ Driving License
Signature Passport copy/ Driving License with

Verification Photograph/ Banker’s Verification
85
Additional Document NA
For Self-Employed:
Passport / Voter’s Card / Driving License

Proof of Identity
with Photograph/ PAN card
Latest Income Tax Return and Computation
Proof of Income
of income
Ration Card/Latest Electricity Bill/Latest
Address Proof (of the
Telephone Bill/Passport/Latest Credit Card
residing city)
Bill/ Driving License
Signature Passport copy/ Driving License with

Verification Photograph/ Banker’s Verification
Additional Document Declaration from Proprietor

For Partnership Firms:
Copy of Partnership Deed & the following

documents required for the loan executing
Proof of Identity
partner: Passport / Voter’s Card / Driving
License with Photograph/ PAN card
Audited Balance Sheet, Profit & Loss Account
Proof of Income for last 2 years along with the latest 2 Income
Tax Returns
Telephone Bill/Electricity Bill/ Shop &
Address Proof (of
Establishment Act Certificate/ SSI Registered
the residing city)
Certificate/ Sales Tax Certificate
Signature
Banker’s Verification
Verification
Additional
Authority letter signed by all partners
Documentation
86
For Private & Public Ltd. Companies:
Copy of Memorandum & Articles of

Association & the following documents
required for the loan executing
Proof of Identity
director/authorized signatory. Passport /
Voter’s Card / Driving License with
Photograph/ PAN card
Proof of Income Last 2 Years Audited Financials
Telephone Bill/Electricity Bill/ Shop &

Address Proof (of
Establishment Act Certificate/SSI Registered
the residing city)
Certificate/ Sales Tax Certificate/PAN No.
Signature
Banker’s Verification
Verification
Additional List of Directors, Share Holding pattern, Copy
Documentation of Board Resolution
On Road Price = Ex Showroom rate + Insurance + Road Tax +
Registration charges
Interest Rate Grid:
Interest Rate Grid (Direct Branch Source)
Car Category Upto 35 months 36 - 60 months 60 – 84 months
Cat A 13.00% 12.00% 13.50%
Cat B 13.00% 11.50% 13.50%
87
Cat C 13.00% 11.50% 13.50%
Cat D 13.00% 11.00% 13.50%
Interest Rate Grid (Dealer/DSA sourcing)
Car Category Upto 35 months 36 - 60 months 60 – 84 months
Cat A 14.50% 13.25% 15.50%
Cat B 14.50% 12.50% 15.50%
Cat C 14.50% 12.00% 15.50%
CAT D 14.50% 11.75% 15.50%
Agricultural Loan:
Financing farmers against pledge of warehouse or cold storage

receipts:
Facility Limit:
Ceiling of Rs. 5.0 lac per farmer
Nature of Facility:
Loan against the pledge of warehouse and/ or cold storage receipts
88
Eligibility for Farmers:
 Original depositors of the receipts.
 The borrower to undertake that he is a farmer and also to provide a
declaration to the effect that he/she is not defaulter to any
Bank/Financial Institution
Designated Warehouse:
CWC/SWC Warehouses Private warehouses/Cold storages/Godowns
with a minimum storage capacity of 100 MT
Value of Loan:
Value of the loan = Value of commodity minus commodity specific
margin amount
Rate of Interest:
BPLR- 4.75%; at present 15.25 % p.a. payable with the principal
repayment.
Margin:
Min 40%.
Tenure of the Loan:

The maximum tenure of each loan shall be 12 months.
Valuation:
89
The value of the commodity as security shall be the lower of the
following:
 Value of goods as reflected in the warehouse receipt.
 Value of the goods based on the average price prevailing in the
nearest mandi on the day previous to the date of disbursement.
 Price provided by the Commodity Business Group, Central Office
from time to time for various commodities
Insurance:
The stocks pledged to the Bank should be insured adequately with
Bank clause.
Security Upto Rs. 200,000:

Primary-: Pledge of warehouse receipts duly endorsed in Bank’s
favour
Security over Rs. 200,000:

Primary-: Pledge of warehouse receipts duly endorsed in Bank’s
favour, Collateral-: Third party Guarantee
Disbursement:
The individual borrower availing this facility will have to open an
account at the concerned local branch (the account can be opened
under ‘SBSPL’ category wherein the average balance requirement is
Rs. 1000/-). The amount will disbursed by crediting the account of the
borrower, at the concerned branch.
90
Selection of the Warehouse/Cold Storage:
The warehouse/cold storage has to have adequate facilities (like
aeration, pest control, loading and unloading facilities, electricity,
security, etc.) to allow for the storage of the produce with minimum
loss in quality and quantity. It is suggested that branches may give
preference to the warehouses accredited by National Commodity and
Derivative Exchange, India (NCDEX) who provide warehouse
receipts to the farmers in dematerialized form.
Security from Warehouse Owner/Manager:

Have to sign M&C agreement with Bank to buy or arrange for the sale
of the stock in case of default of farmer Letter of guarantee/comfort
letter is to be obtain (in absence of the letter of guarantee).
Monitoring & M&C Agent Charges:

M&C agent has to monitor the security. The quality and quantity
report has to be sent to the branch on a monthly basis. Normally 1% of
the loan amount. However, branches can pay maximum 1.5% of the
loan amount wherever required.
Other Conditions:
Post dated cheques to be collected from borrowers
Repayment:
Bullet repayment along with interest on due date.
91
Penal Interest:
2% p.a. on overdue loan/unpaid interest
Pre-payment Charges:
2% (if loan is repaid within one month. Otherwise nil)
Processing Fee:
.40% of the loan sanctioned
Documents to be executed by the Borrower:

 DP Note
 DP delivery letter
 Letter of waiver
 Pledge Agreement
 Warehouse receipt
Documents to be executed by the M&C Agent:

Management and Collection Agreement: To be finalized in
consultation with the Law Department
Event of Default:
In the event of default of a borrower, M&C agent should arrange for
buyers/buy back of the stock. The Bank shall be entitled to sell the
pledged goods either through the M&C agent/ public auction/private
sale/through any commodity exchange and adjust the sale proceeds
against the amount outstanding from the borrower. The price at which
92
the pledged commodity is sold by the Bank is final and binding on the
borrower. However, in case the proceeds from such a sale are not
sufficient to satisfy the amount outstanding in full, the Bank will be
entitled to recover the shortfall from borrower.
Registers to be maintained:
Registers to be maintained by the branch:
Loan application cum disposal register
Price, Stock and Margin recovery register
Insurance due date register
Branches would keep the above mentioned registers in physical form
or in a excel sheet in the system. The records should be updated at the
stipulated time and hard copies be preserved in a separate file.
Registers to be filled in by M&C agent:
Stock and margin register
Rating Tool for Farmer/Agriculture:
Score Sheet for Agricultural Loans

(For individuals)
Scorin
No Parameters Score
g
Own: 5
1. Type of land holding
Leasehold: 3
More than 10 acres: 5
Extent of land under More than 5 and Upto 10
2.
cultivation acres: 3
5 acres and below: 2
93
Type of crop under Cash crops: 5
3.
cultivation Non cash: 3
Drip/Sprinkler irrigation: 5
4. Irrigation Well/canal: 3
Dry farming: 1
Through Co-Operative
Marketing Societies/Private corporates: 5
5.
arrangement Through Govt. agencies: 3
Direct: 1
Source of income from
activities allied to Yes: 3
6.
agriculture/other No: 0
source of income
Bench marking: (Out of 28):
Score above 18 A1
15-18 A2
10-14 A3
Score below 10 A4
Agricultural Gold Loan – ‘Power Gold’:
Eligibility:
 Any individual who has completed 18 years of age and is involved
in agriculture/allied activities.
 In case one spouse is availing of the loan against gold ornaments
owned by the other, the borrowing should be in the joint names.
 Gold bullion will not be accepted as security.
94
 Only original owner of the Jewellery.
 Jewellery below 20 carat should be avoided.
Limit :
Minimum - Rs.15,000
Maximum - Rs.10,00,000
Loan Amount and Margin:

Loan Amount = (Net weight. of ornament in terms of 22 carat) *
(Advance rate)Net weight of ornament in terms of 22 carat = (Net
weight of ornaments * Purity)/ 22
 Advance rate at present: Rs.740/- per gram
 BH can selectively increase advance rate by Rs.10/-
Margin Call:
During the tenure of the loan, if the margin of the loan, based on the
market value of the gold, falls below 20%, the borrower would be
called upon to deposit the shortfall. If the borrower fails to pay the
shortfall within 15 days, the Bank will have the right to dispose off the
gold ornaments.
Security:
 Primary - Nil
 Collateral - Pledge of gold ornaments
95
Custody Charges:
 If gold value > 5 times loan amount
 Rs. 1000 + ST per year
Pricing:
 For limit up to Rs. 1.00 Lakh: BPLR-4.25%
 For limit above Rs. 1.00 lacs: BPLR-4.75%
 Interest application is Annual and to be paid along with principal
Penal interest:
2% per year on overdue amount.
Disbursement:
 Up to Rs.50,000/- in Cash.
 Above Rs.50,000/- by Pay Order.
Documentation:
Following documents should be obtained from borrower.
 Application form
 D.P.Note
 D.P.Note delivery cum waiver letter
 Letter of Pledge
 Proof of agricultural activity (copy of land records, land revenue
tax receipts etc.)
 Declaration of ownership of the ornaments pledged
96
 Authorisation from the borrower for disclosure of information
The following document should be obtained from the appraiser

Certificate of valuation
Processing & Appraiser fees:

 0.25%+ST subject to maximum of Rs. 500+ST
 BH has discretion to waive/ reduce if RoI is increased by
0.30%
 No fee up to Rs.25,000/- loan
 0.25% subject to maximum of Rs.500/-
Insurance:
Gold ornaments pledged to the Bank will be covered under the Master
policy of theft and burglary. Bank’s indemnity policy will be
obtained by the Bank centrally.
Sanctioning Authority:
The sanctioning authority would be the Branch Head in the category
of Manager/AVP/VP. The branches should send the Control Returns
on monthly basis to the Zonal Office for noting and review. The VP
(Credit & Forex) will be the reviewing authority at the Zonal Office.
Repayment:
Repayment period not exceed 18 months. The facility will be
renewable at the request of the borrower after 18 months. The
repayment schedule should be aligned with the crop harvest cycle.
97
Release of the gold ornaments on repayment by borrower
The branch should release the security only if the full amount of
interest, other charges and principal has been repaid. The borrower
should present the signed receipt issued to him/her by the Bank while
taking delivery of the ornaments. The borrower(s) needs to sign the
receipt acknowledging that the gold ornaments have been received by
him/her in good order and condition.
The signed receipts should be arranged as per the date of closure of
loan account and shown to the inspecting authority at the time of the
inspection.
Guidelines for the release of the pledged jewellery on liquidation of
the loan on death of the borrower will be issued later in consultation
with the Law Department.
Right of Disposal of Security:

In case of default, Bank has the right to dispose the gold ornaments for
satisfaction of the loan by way of public auction or private treaty and
proceed against the borrower.
Power Gold Plus:
Difference from Power Gold:

 Minimum Rs. 2.00 lacs to Rs. 10.00 lacs.
 Monthly interest application.
 Drawing Power: 80% of value of the ornament.
 Field inspection report to confirm the activity is to be undertaken.
98
 Maximum 6 redemptions and pledges can be permitted in a year,
Rs.250/- plus ST will be charged per redemption/pledge.
 Custodian charges of Rs.3,000/- plus ST, will be charged per year if
the value of the security is more than 5 times the loan amount.
Pricing:
 Direct Agriculture: BPLR–3.75%.
 Indirect Agriculture: BPLR-3.25%.
 Fee: 0.25% subject to maximum of Rs.1,000/-.
 Appraiser Fee: 0.25% subject to maximum Rs.1,000/-.
Product Features:
 CC facility against gold (CCAPG)
Target Group:
 For allied agricultural activities like poultry, dairy, fisheries etc-
Direct Agriculture.
 Financing agriculture input dealers, Arthias/ Commission agents
etc – Indirect Agriculture. Crop cultivation should not be financed.
Kisan Power Scheme:
Purpose:
Production Credit i.e. for meeting cost of crop cultivation/allied
agricultural activities.
Investment Loan for meeting any investment need, other than
production expenses, that can improve borrower’s farm productivity
99
i.e. purchase of agricultural equipments, land levelling, land
development, vehicles etc.
Consumption Loan for meeting consumption needs
Financing of all allied agricultural activities except the following is
eligible under Kisan Power-No tractor /trailer shall be financed under
the Kisan Power Scheme. Poultry shall not be financed under Kisan
Power Scheme
Eligibility:
Any individual who is a major Owner Cultivators Tenant Cultivators
and Share Croppers may be financed selectively. Minimum
landholding should be two acres of cultivable land. Landholding has
to be supported by land documents like 7/12 extract, Patta, chitta,
Adangal (confirming ownership, crop pattern) etc. Joint holding
(single or multiple locations) up to five persons are permitted.
In case the borrower is more than 60 years of age, a co-borrower is
mandatory. The co-borrower should be a family member / relative of
the Borrower.
Radius of Operation:
Radius of operation restricted to 50 km from the Branch. However,
VPAF may allow financing select cases under the scheme beyond 50
kms and upto 75 kms, provided the distance will not come in the way
of effective follow up and recovery.
Nature of Facility:
100
Term loan – Consumption Loan and Investment Loan
Cash credit – Production Credit
Sanctioning authority should ensure that a cash credit facility is
extended in all cases without exception
Amount of Loan:
Overall Limit:
Minimum: Rs. 25001/-
Maximum: Rs. 25,00,000/-
Individual Components:
Facility Min Limit Max Limit
Investment Loan 25001/ 24,74,999/-
Production Credit* 25,001/ 25,00,000/-
Consumption Loan 50,000/ 5,00,000/- For States

of Punjab, Rajasthan
& Haryana and
3,00,000/- For all
other states
*Production Credit is Mandatory
Assessment/Fixation of Limit:
Overall Limit
The overall loan amount/ credit limit will be fixed on the basis of 5
times annual farm income or 70% of the value of collateral security
whichever is less subject to maximum of Rs. 25,00,000/-
Production Credit
For any Kisan Power account, Production Credit is a must. While
calculating Production Credit Limit, scale of finance should be the
101
basis of assessment, which is decided every year by District level
Technical committee (DLTC). The Production Credit Limit can be
maximum upto 150% of the amount of Scale of Finance advised by
DLTC. Crop insurance premium may be debited to production credit,
but the outstanding should be within limit. In other words the
disbursement needs to be net of crop insurance premium.
Production Credit Limit may be extended for leased land also, subject
to the terms and conditions on security/guarantee etc.
Consumption Loan
The Consumption Loan amount should not be more than 3 times of
annual farm income, and subject to the security criteria, within the
upper cap of Rs. 5 lacs/3 lacs as the case may be.
The assessment of consumption requirement is to be based on the
written declaration of the applicant, and 100% of the declared amount
would be allowed subject to maximum limits specified.
Investment Loan
For purchase of Two/Three/Four Wheelers used for carrying farm
goods or Farm Machinery-:
In such cases, the branches shall ensure that the price of the
two/three/four wheelers or machinery should be equal to or less than
the MRP (maximum ex showroom price, which includes all the state
level taxes, but excludes the registration fee, road tax and insurance)
published by the manufacturer. The actual cost of registration, road
tax and insurance can be financed.
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In case of vehicles, the Bank’s interest is to be noted in the RC book
and the vehicles are to be insured under a comprehensive insurance
policy. Along with invoice receipt, RC book copy, a photograph of the
vehicle and the Borrower standing nearby is to be obtained and kept
on record. This may be obtained within 45 days of disbursement. Our
charge on the vehicle should be explicitly mentioned on the vehicle.
In respect of development works like deepening/drilling of wells,
construction of pump house/sheds/cattle sheds etc, the estimates made
by the farmers themselves can be accepted, provided the cost does not
exceed more than 20% of the unit cost approved for that
activity/purpose in that region by NABARD.
Security:
Upto Rs. 50000/-
Primary: Hypothecation of crops and other assets
Collateral : Nil
Over Rs. 50000/-
Primary : Hypothecation of crops and other assets
Collateral: Mortgage/ Charge of land owned by the prospective
borrower upto 140% (1.4 times) of the amount of loan as per State
laws.
Margin:
Investment Loan for creation
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of assets and allied activities 25%
(except vehicles)
Investment Loan for vehicles
30%
Nil. The labour input by the farmer
Production Credit is considered as the margin. Hence
no separate cash margin is insisted
for crop loans.
Consumption Loan
NIL
Rate of Interest:
For consumption loans:

Amount Interest Rate
Loan from Rs 50,000 upto Rs 2,00,000 BPLR 1.50%
Loan from Rs 2,00,001 upto Rs 5,00,000 BPLR 1%
For all other loans -:
Amount Interest Rate
Limit up to Rs. 50,000 BPLR 3.50%
Loan from Rs 50,001 upto Rs 2,00,000 BPLR 3%
Loan from Rs 2,00,001 upto Rs 5,00,000 BPLR 2%
Processing Fee:
Fee @ 0.50% for production credit and 1.00% for Investment Loan
and Consumption Loan. Subject to a minimum of Rs.500/-. Service
tax is to be recovered at the applicable rate.
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Sanctioning Authority may at their discretion allow reduction/waiver
are free to recover a higher processing fees on selective basis.
Crop Insurance:
The production credit is to be covered under National Agricultural
Insurance Scheme (NAIS) provided by the Agriculture Insurance
Company of India Ltd (AICIL). Zonal Offices/Advances cells are
authorised to waive this requirement.
Branches to debit actual crop insurance premium from production
credit account (CCAGR). However, no overdrawing should be
allowed. It is to be ensured that the disbursement is made after
keeping sufficient balance for debit of all future insurance premiums.
Accident Insurance:
All KCC holders shall be covered under Personal Accident Insurance
upto Rs.50, 000/- as per the extant guidelines of Kisan Credit card
scheme. This is done under a master policy with Bajaj Alliance
General Insurance Co Ltd by Central Office and the premium amount
of Rs. 15 will be incurred by the Bank. Also, in case of a claim (due to
accidental death, partial disability or total disability), branches should
take up the matter with Bank Assurance Cell in Retail Banking
department at CO for an early claim settlement. The proceeds of
insurance are to be credited to CCAGR account of the borrower.
Insurance of Assets:
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All the securities (Building, equipment and Vehicles) created out of
the loan or otherwise are to be insured for full value. Branches may
take the help of our insurance advisers for this purpose.
Disbursement:
Wherever cash disbursement is to be made (in case of Production
credit/Investment Loan or Consumption Loan), the funds should be
credited to the operative (SB/CC) account of the borrower and should
be withdrawn through cheque leaf.
Investment Loan
Investment loan is to be disbursed in one or more instalments
depending upon the progress of work.
In case of Investment loan for purchase of implements/
equipments/vehicles, the borrower should be asked to deposit the
margin money with the Bank, and the disbursement is given to the
dealer/manufacturer/supplier directly by DD/ Pay order along with
margin.
In case the implement/ equipment is already purchased by the
Borrower, disbursement is permitted after inspection by the Bank’s
official and after getting the stamped receipt and invoice. These
purchases should not be older than 75 days.
Cash disbursement may be made for purchase of animals, construction
of farm shed etc. and the relative receipt is to be obtained within 45
days of disbursement. The labour component in Investment loan can
be released in cash after getting written request cum declaration from
the Borrower.
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Repayment:
Production Credit
Annual review and renewal in every three years. Branches should
encourage Borrowers to bring the sale proceeds of their agricultural
produce to their CCAGR a/c .
Consumption Loan and Investment Loan
All the investment loans (except horticulture projects) and
consumption loan should be repayable within a maximum period of 5
years. Repayment period up to 7 years is permitted in case of
horticultural projects which is inclusive of moratorium period upto
maximum of 3 years. Sanctioning authorities to ensure that projects
having sufficient cash generation in the residual loan period (I.e. total
period minus moratorium period) to ensure repayments only are
considered. A suitable moratorium may be allowed upto maximum of
2 years in case of Investment Loan (except horticulture projects and
vehicle loans). The instalments should be monthly/quarterly/Half
yearly/yearly depending on harvesting of crop and other income
sources like dairy, salary, other employment etc. depending on the
income stream the repayment of vehicle loans is to be fixed at
monthly/quarterly or half yearly intervals and the maximum
moratorium for vehicle loan is to be restricted to 6 months.
Penal Interest:
2% p.a. on overdue amount.
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Documentation:
Borrower:
 Demand Promissory Note for Production Credit
 Letter of waiver cum DP Note delivery letter for Production Credit
 Loan cum hypothecation Document – ACD 1.
 Simple (Registered) Mortgage - ACD 2 / Equitable Mortgage
(ACD-4A & 4B).
 Duly signed PDCs along with covering letter
 Duplicate copy of the sanction letter duly signed by the borrower/s
and guarantor/s.
 A letter addressed to the Village Revenue Officer advising him to
record the charge of the Bank for the amount of the loan on the land
records with him.
Guarantor:
 Deed of Guarantee - ACD 3.
 Additional Documentation for Vehicles
 Power of Attorney for registering the vehicle in favour of one of the
joint accountholders in case there are more than one borrowers
 A letter of authority to the Bank for effecting disbursement of the
loan directly to the dealer.
 RTO forms no.26, 29,30,34,35
MIS and Monitoring:

Monthly Control Returns to be submitted by the branches/Cluster
Heads to Advances Cell/Zonal Office for reporting advances.
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Appraisal and Sanction:
Application for Kisan Power should be obtained from the proposed
borrowers and also the guarantor in the prescribed format. Branches
need to offer comments in the proposal on the value of the main
security, collateral security, i.e. value of the land being mortgaged to
the bank and the basis of calculation of limit to the farmer. The
agriculture officers/branch staffs identified to deal with the scheme is
to travel to each of the individual centres to meet the applicants, verify
the details and put up the proposal for sanction to the Branch
Head/Cluster Head. The recommending and the sanctioning authority
should sign the proposal.
Pre sanction Visit:

The focus of visit should be on an evaluation of the income stream of
the borrower, and a comprehensive assessment of credit needs taking
into account track record, credibility, capability, as well as technical
viability of the existing and proposed activities. Short-term credit
needs of the farmer should include all requirements directly and
indirectly related to production, post harvest and household expenses.
Repayment capacity should be assessed on the basis of aggregate
household income from all sources including crop production and
ancillary activities.
The following details should be observed during farm inspection:
Necessity of the development/s proposed to be undertaken.
The crops cultivated and suitability of the crops proposed after the
development Past experience in the activity In case of Investment
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Loan, it should be ensured that the land on which the developments
are proposed is available as security.
Additional guidelines for Vehicles:
Margin payment should be made to the Bank and under no
circumstances, the Borrower should be allowed to pay directly to the
dealer and produce a receipt. Registration of vehicles and Stamped
receipt from dealers for the cost of the vehicle financed by us should
be obtained. Our charge on the vehicle should be explicitly mentioned.
Registers to be maintained:
 Loan Application Receipt cum Disposal Register
 Mortgage Register
 Document Execution Register
Recovery:
Sanctioning authority to designate an officer (In the cluster HQ/ Stand
alone branch) for recoveries. He should monitor the accounts regularly
and initiate action, whenever required. Branches may seek help of
outsourced agencies for recovery. The appointment of outsourced
agency shall be sanctioned by VPAF after doing a cost benefit
analysis.
Direct Financing to Farmers for Cattle Loans through Dairies/

Cooperatives:
Facility:
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Term Loan
Purpose:
 Purchasing Milch animal
 Construction of shed for keeping cattle.
Extent of Finance:
The extent of finance shall be 85% of the cost of animals/ shed
constructed. The borrower’s own contribution shall be to the extent of
minimum 15% of the total cost of cattle purchased/shed constructed.
The minimum indicative costs can be found out from the State Level
Unit Cost Committee of NABARD.
Amount:
Minimum Amount: Rs. 30,000
Maximum Amount: Rs. 2,00,000
*The cost per cattle is assumed to be around Rs. 18,000-19,000. As
per the eligibility criteria borrower has to purchase a minimum of two
milch cattle from loan amount hence, the minimum availment should
be around Rs. 30,000 keeping a margin of 15 % by farmer.
Age:
Any major individual pursuing dairy farming activity.
Eligibility Criteria:
Farmer should have a record of supplying minimum 10 litres of milk
per day on an average for at least one year with the Village Dairy
Cooperative Society.
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Margin:
15 % of value of cattle to be purchased and/or shed to be constructed.
Rating:
The score sheet for agricultural advances may be used for the purpose.
The farmer with a rating of A1 and A2 may be considered for the loan.
Tenor:
Maximum period of Four Years from the first transaction of
disbursement to borrower with a maximum moratorium period of 3
months before start of principal repayment.
M&C Commission:
The Dairy will be paid 0.5% of the loan amount as commission for
acting as an M&C agent for the Bank.
Documentation:
 Hypothecation cum Term Loan Agreement. Guarantee from
Village Dairy Cooperative Society format is being finalized in
consultation with Law Dept. Personal Guarantee from member of
dairy coop society or third party.
 Letter addressed by Borrower to Sponsor and Sponsor to Bank.
 Letter of comfort/Guarantee from Dairy/Milk Union
 M&C Agency agreement between the Dairy and the Bank.
Repayment:
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The repayment will be made through escrow mechanism with a
maximum moratorium of 3 months. Thereafter, the loan is to be repaid
in maximum 4 years in monthly instalments.
Rate of interest:
The pricing will be irrespective of the rating:
Penal interest:
Loan Amount Rate
2.00% p.a. on the
Rs. 30,000-2,00,000 BPLR-3% overdue interest and
Above Rs. 2,00,000 BPLR-3.5% instalments.
Prepayment Charges:
In case of prepayment of loan within one year from the disbursement:
2% of the amount prepaid.
Security:
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Primary: Hypothecation of cattle financed by the Bank and other
movable assets.
Collateral: Letter of Comfort/Guarantee by the Union against the loan
Guarantee from Village Dairy Cooperative Society/Personal
Guarantee. In case the loan amount exceeds Rs. 1 lakh the same
would be further secured by noting of the Bank’s charge on the land
records of the borrower or create a mortgage of land in favour of the
Bank.
Insurance:
Cattle/Shed will be comprehensively Insured with the beneficiary
clause as UTI Bank Ltd. The premium payable is added in the cost of
the project.
Processing Fee:
0.5% of the total loan amount
Other Terms and Conditions:

In case guarantee is not available from Village Dairy cooperative, a
guarantee from a person within the group or a guarantee from a third
person acceptable to the Bank should be obtained. The personal
guarantee has to be obtained from a guarantor should own his/her own
tractor/own at least 2 acres of irrigated land/4 acres of dry land
employed in government, semi government employment in the
category of Scale III and above or working with any reputed private
sector undertakings at a respectable positions Running own business
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and having assets with a market value equal to the amount of the loan.
The Branch will reserve the right to reject any loan application based
on its own appraisal, having right to conduct inspections without any
prior notice. In case the Borrower stops supplying milk to the Union
the entire loan amount shall be repayable in lump sum/ recalled.
Bench marking: (Out of 30)
Score of 26 and above A1

25-21 A2
16-20 A3
<16 A4
Score Sheet for Dairy/Milk Union:
Scorin
Parameters Score
g
Positive PAT for past 3 years:
5
Positive PAT for 2 years out
Financial Performance of
of 3 years: 3
Dairy/Union
Negative PAT for for 2 years
and above out of past 3 years:
0
Less than 7 days: 5
More than 7 and Upto 15
Milk Payment cycle
days: 3
More than 15 days: 0
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Extension Services available All three services provided: 5
through Dairy/ Milk Union: Two out of three services
Cattle Feed provided: 3
Veterinary service One service provided: 2
Artificial Insemination Not provided: 0
Average capacity utilisation Above 60%: 5

of Milk Processing Plant Between 60%-45%: 3
over past 3 years Less than 45%: 0
Average daily milk supplied More than 10 litres: 5

per farmer member over Between 5-10 litres: 3
current financial year Less than 5 litres: 0
Collateral Security available Guarantee or cash margin: 5

from Union Letter of Comfort: 3
Direct Financing to Farmers under Contract Farming:
Contract farming can be defined as an agreement between farmers and

processing and/or marketing firms for the production and supply of
agricultural products under forward agreements, frequently at
predetermined prices. The arrangement also invariably involves the
purchaser in providing a degree of production support through. The
basis of such arrangements is a commitment on the part of the farmer
to provide a specific commodity in quantities and at quality standards
determined by the purchaser and a commitment on the part of the
company to support the farmer’s production and to purchase the
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commodity. The intensity of the contractual arrangement varies
according to the depth and complexity of the provisions in each of the
following three areas:
Market provision: The grower and buyer agree to terms and
conditions for the future sale and purchase of a crop or livestock
product;
Resource provision: In conjunction with the marketing arrangements
the buyer agrees to supply selected inputs, including the inputs
required for land preparation and technical advice;
Management specifications: The grower agrees to follow
recommended production methods, inputs regimes and cultivation and
harvesting specifications.
Parties to the contract farming financing:
 Farmer
 Bank
 Sponsor
Sponsor can act as management and Collection agent to undertake the
following functions:
 Identification and screening of borrowers.

 Completing application form and other formalities like getting
extracts of land records, no due certificate etc. of the proposed
borrowers.
 Recommending the Bank for loan.
 Getting security documents executed by the borrower after sanction
from the Bank and forwarding the same to the Bank.
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 Paying the amount to the farmer disbursed by the Bank.
 Getting stamped receipt from the borrowers in token of having
received the amount of loan and p0ass on to the Bank.
 After the supply is over, sending to the Bank the entire proceeds
payable to the farmer. In case amount payable to farmer by the
sponsor is less than loan outstanding, to recover the balance amount
from the farmer and remit to the Bank against the loan out
standings.
 Submitting the monthly MIS.
Eligibility Criteria:
Cultivable fertile land of 3 acre and above. It has to be supported by
land documents like Patta, chitta, adangal, 7/12, 8/A extract
(confirming ownership, crop pattern etc) etc.
Rating:
The individual account will not be rated in view of the structure of the
scheme and comfort available from Sponsor.
Sanctioning and Disbursement of Loan:
Bank and the sponsor based upon the scale of finance as decided by
the DLCC of the lead Bank or a mutually agreed upon scale will be
arrived upon by the Bank and the sponsor.
The disbursement of loans will be effected to the credit of current a/c
to be opened by the sponsor with our Bank exclusively for the said
purpose. In order to make the disbursement to the farmers who are
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located at different centres, the sponsor will open a current account
with any other local bank, again exclusively for making disbursement
of loans to the farmers. The sponsor will also arrange to obtain a
stamped receipt from the farmer borrowers in token of having
received the amount of loan.
The agriculture extension officers of sponsor will identify the
individual farmers and complete all the documentation formalities as
prescribed by the Bank. After the satisfaction of our branch personnel
about the completion of documentation formalities, our branch will
issue a consolidated cheque favouring the sponsor’s dedicated current
account with our bank.
Sponsor will arrange to provide us the transactions details of the loan
disbursement account on a monthly basis certified by a Charted
Accountant.
Amount:
Depending on scale of finance as decided by the DLCC of the lead
Bank per acre of land; or what is mutually agreed upon by the Bank
and the sponsor, as the case may be.
Rate of Interest:
7.00%-12.00% per year. Payable half yearly depending on case to case
basis.
Tenor:
Duration of the crop plus two months
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Security:
 Hypothecation of crop.
 Letter of Guarantee / Comfort letter (in absence of the letter of
guarantee) from the sponsor
Collateral Security:
Nil
Insurance:
Wherever available the crop should be insured with standard bank
clause.
Processing Fees:
Nil
Disbursement:
The agriculture extension officers of sponsor will identify the
individual farmers and complete all the documentation formalities as
prescribed by the Bank. Sponsor will forward our branch, the
individual applications for the loan along with the required documents
as detailed in the scheme.
After the satisfaction of our branch personnel about the completion of
documentation formalities, our branch will issue a consolidated
cheque favouring the sponsor’s dedicated current account with our
bank.
The sponsor will arrange to obtain a stamped receipt from the farmer
borrower in token of having received the amount of loan and pass on
to the Bank. Sponsor will arrange to provide us the transactions details
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of the loan disbursement account on a monthly basis certified by a
Charted Accountant.
Repayment:
After the supply is over, sponsor shall send to the Bank the entire
proceeds payable to the farmer. The bank will make balance payment
to the farmer after deducting their crop loan dues. In case amount
payable to farmer by the sponsor is less than loan outstanding, sponsor
will recover the balance amount from the farmer and remit to the Bank
against the loan out standings.
Our branch would conduct inspection on a half-yearly basis or as
decided by the Bank to verify the crop. Our branch would also verify
the books of accounts of the sponsor at half yearly interval to verify
the disbursal of loan as per the scheme. Also, if required an external
auditor would be appointed to audit the accounts.
Other Terms:
Sponsor will sign M & C agency agreement with the Bank.
Education Loan:
Axis Bank's Study Power aims to provide financial support to

deserving students for pursuing higher professional or technical
education in India and abroad. The loan would be provided to students
who have obtained admission to career-oriented courses eg, medicine,
engineering, management etc., either at the graduate or post-graduate
level.
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Quantum of loan:
The quantum of finance under the scheme is capped at Rs.10 lacs for
studies in India and RS 20 Lacs for studies abroad, which cover
tuition fees, hostel charges (if any), cost of books, etc. The minimum
amount of loan would be RS 50000.
Margin:
No margin for loans upto Rs 4 lacs. For loans above Rs 4 lacs, 5%
margin for studies within India and 15% for higher studies overseas.
Rate of interest:
Interest rates linked to PLR.
Role of the Guardian:

The parent(s) or guardian of the student would be treated as a co-
applicant of the loan. His or her role would be, necessarily, like the
primary debtor.
Security:
Third party guarantee and/or collateral security may be asked for in
appropriate cases.
Additional Security:
Assignment of LIC Policy in favour of the Bank for the sum assured
being at least 100% of the loan amount. The policy is kept alive
during the currency of the loan. To ensure this, the annual premium
may be include in the computation of the loan requirement, along with
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the tuition fees and other recurring charges. Further, the future income
of the student needs to be assigned in favour of the Bank for meeting
the instalment obligations.
Disbursement:
The loan will be disbursed in full or in suitable instalments taking into
account the requirement of funds and/or fee schedule as assessed by
the Bank directly to the educational institution or vendor of books or
equipment or instruments.
Penalty for early closure:
Nil
**********************
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CHAPTER 7
FINDINGS
FINDINGS
COMPETETIVE ADVANTAGES OF AXIS BANK:
The Economic Survey of 2005-06 has affirmed that significant
features of dynamic growth in recent years include a new industrial
resurgence, pick-up in investment, modest inflation inspite of spiraling
global crude prices and the laying of institutional foundations for
faster development
of infrastructure. The economic growth indices in the current year
have been good and the GDP growth is expected to be around 8.1%
124
for fiscal 2006. Non-food bank credit is expected to grow at 25.2%
indicative of industrial recovery and the services sector by 9.8%.
Agriculture and
Allied sectors are expected to grow at a rate of 2.3% in the current
fiscal. In order to maintain the GDP growth at over 8% in coming
years and accelerate growth in industry, substantial investments will
be required in infrastructure. External conditions have also been
favorable with a growing level of foreign exchange reserves. The
overall macro-economic prospects for 2006-07 are, therefore,
encouraging.
OVERVIEW OF FINANCIAL AND BUSINESS

PERFORMANCE
The Bank has been able to turn in an impressive business performance
and record good financial results for the fifth year in succession,
owing to the efficacy of its business model which aspires to be
customer-centric.
Information technology is continuously leveraged in providing value
added products and services as well as multiple-delivery channels to
customers in a manner that is cost-effective and which offers the
Bank’s customers easy, real-time and on-line access for all types of
transactions.
The strong performance, despite a tightening of overall liquidity
leading to a hardening of interest rates in the closing stages of the
fourth quarter, reflected the fact that the primary
125
Goals of the Bank of increasing its market share in various businesses
and improving its quality of earnings by enhancing its core income
streams, is solidly anchored in the strategy adopted by it.
The sizeable network of branches, extension counters and ATMs has
equipped the Bank with an impressive reach across the country and is
supported by channels such as the Internet and mobile phone banking.
The steady widening of this reach to smaller cities and towns,
including in district headquarters, is expected to sustain the
momentum of growth of low cost deposits, as the Bank enjoys a first-
mover advantage vis-à-vis other private sector banks in many of these
centers.
The key factors which contributed to the healthy performance of the
Bank during the year were the
 Continued thrust on improvement in the quality of earnings
through an emphasis on core income streams such as net interest
income and fee based income;
 The availment of opportunities emanating from the upswing in
the corporate credit cycle;
 A focus on improvement in asset quality through rigorous credit
and risk appraisal, sound treasury management, product
diversification and internal control;
 Enhanced cost efficiency by leveraging on technology that is
continuously upgraded;
 Maintenance of high standards of customer service.
126
SERVICES ADDED TO GAIN COMPETETIVE ADVANTAGE:
BUSINESS CONTINUITY CENTRE:
UTI Bank was the first bank in the country to set up a Business
Continuity Centre (BCC)
In Bangalore which replicates the entire centralized database with a
view to enable the Bank to run smoothly in case of any eventuality
affecting the Bank’s Data Centre in Mumbai.
Each transaction that gets recorded at the Data Centre gets reflected
almost instantaneously
through WAN on the back-up database at the BCC.
CENTRALISED PHONE BANKING CENTRE

The Bank’s Centralized Phone Banking Centre provides customers
across the country
Access to the Bank over the phone, handling multiple queries in about
7000 calls per day.
CENTRALISED COLLECTION AND PAYMENT HUB

The Bank’s Centralized Collection and Payment Hub (CCPH)
manages the entire collection and
Payment activity under the Bank’s Cash Management Services (CMS)
across the country, handling on an average about Rs.5000 crores per
month on the collection front and about Rs.1500 crores per month on
the payment front.
127
RETAIL ASSETS MANAGEMENT GROUP
The Bank’s Retail Assets Management Group (RAMG) is the
operations hub of the entire
Retail asset distribution structure. In addition to opening and
disbursing more than 3000
Schematic loans every month, it is responsible for the maintenance of
more than 100,000
Such loan accounts, and handles the entire post – dated cheque
presentation and several
Kinds of repayments for all these accounts.
ATM BACKEND CEL

The ATM Backend Cell handles the entire cash management and
reconciliation of balances pertaining to ATMs across the country and
ends up tallying over four lakh
Transactions by the end of the day.
SERVICE BRANCHES
The Bank’s Service Branches in the 8 major metros take care of
centralized clearing activity,
Handling more than one lakh cheques every day for outward and
inward clearing.
DATA CENTRE
The Bank’s Data Centre in Mumbai, the centralized IT powerhouse is
like the central nervous system of the Bank. It is a real time 24x7
128
setup which manages 270 products and services of the Bank with a
database size of 1850 GB supporting on an average 42 lakh
transactions per day
to service over 42 lakh customer accounts and adding new customers
@ 8000 per day.
CENTRALISED PROCESSING UNIT
The Bank’s Centralised Processing Unit (CPU) is the backbone of the
Bank, managing production and delivery of the entire range of
deliverables to customers across the country within 24 – 72 hours
from the time the customer opens the account. The CPU currently
handles about 8500 new accounts every day.
CHAPTER 8
SUGGESTIONS/
129
RECOMMENDATIONS
SUGGESTIONS/RECOMMENDATIONS
A healthy banking system is essential for any economy striving to

achieve good growth and yet remain stable in an increasingly global
business environment. The Indian banking system, with one of the
largest banking networks in the world, has witnessed a series of
reforms over the past few years like the deregulation of interest rates,
dilution of the government stake in public sector banks (PSBs), and
the increased participation of private sector banks.
The growth of the retail financial services sector has been a key
development on the market front. Indian banks (both public and
private) have not only been keen to tap the domestic market but also to
compete in the global market place. New foreign banks have been
equally keen to gain a foothold in the Indian market.
Key banking reforms needed:
130
 Encourage voluntary consolidation among banks
 Allow public sector banks to fix salary levels proportionate to
performance
 Permit banks to issue preference shares to raise capital.
 More autonomy to fix salary levels proportionate to
performance.
 Offer Competitive compensation packages at all levels to
improve employee productivity.
Strengths of the banking industry
 Regulatory systems,
 Economic growth,
 Technological advancement,
 Risk assessment systems
 Credit quality.
Scope of improvement includes:
 Diversification of markets beyond big cities,

 Human resources systems, size of banks,
High transaction costs, infrastructure and labor inflexibilities
RECOMMENDATIONS TO THE COMPANY TO GAIN
UPPER MARKET SHARE:
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UTI Bank was one of the first private banks to launch operations in
the country in 1994, after the Government of India passed a resolution
in favor of privatization. An IT savvy bank, UTI Bank is a pioneer in
adopting new technologies in the banking sector. UTI has a very large
network of branch offices and extension counters across the country.
With over 1700 ATMs, UTI Bank has the largest ATM network of its
kind in India.
CRM:
Privatization opened up the Indian banking sector, allowing a large

number of players to offer retail banking services in the country.
Using the latest technologies, UTI Bank introduced quality services to
enhance the banking experience of its customers. As the services stack
expanded, supporting customers became a challenging task. Efficient
service and timely support were the deciding factors for customers to
remain loyal to any particular bank, which brought Customer
Relationship Management (CRM) into sharp focus.
BPO:
UTI Bank wanted to establish itself as a customer focused bank and

carve a niche for itself amidst the widespread competition. Setting up
a state of the art call center facility that could provide quality support
to customers across the country became vital to further this goal. The
call center was expected to eliminate the load of routine queries that
branch operators had to handle. A dedicated response center would
allow branch operators to divert all customers’ queries to the helpdesk
132
number and focus on their core responsibilities instead. Also, a single
window service with a populated knowledgebase would introduce a
high degree of standardization in the replies given to customer queries.
The bank was also looking to avoid a situation where customers
would be put on hold for long periods of time. A failover and
redundancy solution was required to guarantee high availability of
services and ensure uninterrupted call traffic. For handling large call
volumes, the application infrastructure was also required to be
perfectly scalable. The bank wanted a solution that could
accommodate growth over a long period of time.
CHAPTER 9
CONCLUSION
133
CONCLUSION
My experience with Axis Bank Ltd. is outstanding. While

working in Axis Bank I found that this bank has developed
manifold in short period of time due to facilities and services
provided to their customer and this growth rate can be keep it up
if they start to go in semi-urban areas. In last couple of years they
have opened new many branches and they should open many
more. The working staff is very co-operative in nature and due to
that the bank will also get good benefit. Axis Bank has provided
their customer Net-banking facilities and due to that
transactions are done fast. Charges at Axis Bank are on lower
side when we compare it with other Banks.
 It was a great opportunity to gain an insight about various activities

that takes place in the bank.
 I came to know what banking is all about.
 About AXIS Bank.
134
 The kind of products and services are provided by AXIS Bank.
 This training increased my confidence level and it was a great
opportunity to learn about corporate culture and etiquettes.
 It was a great opportunity to develop persuasion skills and
communication skills.
Abbreviations and Acronyms
135
(Glossary)
Bank:
RBI : Reserve Bank of India

BIS : Bank of International Settlement
BCBS : Basel committee on Banking Supervisory
Practices
NABARD : National Bank of Agriculture and Rural Development
DICGC : Deposit Insurance and Credit Guarantee
Corporation
ECGC : Export Credit Guarantee Corporation
136
Delivery Channels:
SOL : Service Out-let

ATM : Automatic Teller Machine
PIN : Personal Identification Number
POS : Point of Sale
VbV : Verified by Visa (Secured Internet Payment System)
WWW : World Wide Web
SMS : Short Messaging Service
Overseas Investor:
FII : Foreign Institutional Investor
NRI : Non Resident Indians
PIO : Persons of Indian Origin
FDI : Foreign Direct Investor
OCB : Overseas Corporate Body
Fixed Deposit:
STD : Short Term Deposit

MIC : Monthly Income Certificate
QIC : Quarterly Income Certificate
RIC : Re-Investment Certificate
Interest:
LIBOR : London Inter Bank Offered Rate
137
MIBOR : Mumbai Inter Bank Offered Rate
Payment and Settlement System:
IDRBT : Institute for Development and Research in Banking

Technology
INFINET : Indian Financial Network
SFMS : Structured Financial messaging Solution
RTGS : Real Time Gross Settlement (System)
NEFT : National Electronic Fund Transfer (System)
IFSC : Indian Financial System Code
SEFT : Special Electronic Fund Transfer
ECS : Electronic Fund Transfer
SWIFT : Society for World Wide Inter Bank Financial
Telecommunication (Network)
MICR : Magnetic Ink Character Recognition
Regulators:
AMFI : The Association of Mutual Funds in India

IRDA : Insurance Regulatory and Development Authority
SEBI : Security and Exchange Board of India
CBIL : Credit Information bureau (India) Ltd.
Investment:
CRR : Cash Reserve Ratio
138
SLR : Statutory Liquidity Ratio
ALM : Assets liability Management
ALCO : Assets Liability Committee
REPO : Reverse Purchase Order
GDR : Global Depository Receipt
ADR : American Depository Receipt
General:
BPLR : Benchmark Prime landing Rate

FCNR : Foreign Currency Non Resident
NRE : Non Resident External
NRO : Non Resident Ordinary
FEMA : Foreign Exchange Management Act, 1999
FERA : Foreign Exchange Regulation Act, 1973
FEDAI : Foreign Exchange Dealers Association of India
HUF : Hindu Undivided Family
COPRA : Consumer Protection Act.
Ombudsman : To Take Public Complaints against the Public
Authorities
TDS : Tax Deductible at Source
KYC : Know Your Costumer
FATE : Financial Action Task Force
FIU-IND : Financial Intelligence Unit India
CAR : Capital Adequacy Ratio
CRAR : Capital to Risk-Weighted Assets Ratio
139
GAAP : Generally Accepted Accounting Principles
NPA : Non Performing Assets
SARFAESI : Securitisation and Reconstruction of Financial
Assets and enforcement of Securities Interest (Act)
GRACE : Ground Rules and Codes of Ethics
140
APPENDIX/ANNEXTURES
Questionnaire On Credit Card

Rimple bamba
H.no 36-b,modal town,
Rani ka bagh,ASR
9888210520
rimplebamba@yahoo.co.in
Name: __________________________________
Today’s date _________________
Address:
________________________________________________________
____
City, state, _______________________________
Zip code ____________________
141
Phone no._______________________________
Mob.No.____________________
1.Gender of Credit card user.

o Male
o Female
2. Age group of credit card users.

15 to 35
35 to 50
50 to 60
Above 60
3. Your annual Income?

1,00,000
1,00,000 to 2,00,000
2,00,000 to 3,00,000
< 3,00,000
4. Which area they belong?

Rural
Urban
5. Occupation of credit card user?

Lawyer Doctor Engineer
Architect Builder Consultant
Exporter Importer Student
Others, Please specify______________________________________
6. Which Bank Credit card you use?

AXIS Bank
SBI Bank
ICICI Bank
HDFC Bank
7. How long have been you using the Credit card?

Less than 6 months
142
1to 2 years
2 to 4 years
More than 4 years
8. How often do you use Credit card services in a day?

............... Times
9. In which bank you are operating your savings account?

_______________________________________________
10. In which bank you are operating your current account?
________________________________________________________
__
11. How much minimum balance or average quarterly balance you

have to maintain in
your account?
Savings Account _________________
Current Account _________________
12. Why has you chosen this bank?

Past Relationship
Brand name
Near to home/office
Others, Please specify_______
13. Are you satisfied with the services providing by your bank?
Satisfied
V.Satisfied
Indifferent
Dissatisfied
V. Dissatisfied
14. What are the services provide by your bank?
143
Home Banking (Free/ charged)
Net Banking (Free/ charged)
Phone Banking (Free/ charged)
At-par cheque Book (Free/ charged)
Global Debit Card (Free/ charged)
Demand Draft (Free/ charged)
Auto Sweep FD (Free/ charged)
24 hrs ATM (Free/ charged)
Investment a/c (Free/ charged)
Additional savings a/c (Free/ charged)
Others, please specify ________________________________
15. Are you Satisfied with Bank¶s Services?

Yes
No
Fully
Partially
16. How would you rate the services of Bank?

1. Good 2. Fair
3. Poor 4. Very poor
17. Are you satisfied with the relationship maintained by the bank?
________________________________________________________
_______
18. What kind of quality of the relationship do you like to in your

bank?
________________________________________________________
_______
19. Do you think that your bank is providing a Quality customer care
services?
________________________________________________________
_______
144
20. What exactly you are looking for in your bank? Please write
your expectations.
________________________________________________________
____
_________________________
SIGNATURE
DATE
PLACE
BIBLIOGRAPHY
145
SR. NO. REFERENCE
1 - A New Beginning : The Turnaround Story Of

Indian Bank
2 - Bank Marketing : Concepts And Applications
3 Banking And Finance
4 Banking Developments in India
5 Basics of Banking
6 Bank leaflet and Boucher
7 Internet www.Axisbank.com
www.google.co.in
www.finance.india.mart.com
www.banknetindia.com
www.rbi.org
www.moneycontrol.com
*********************
146

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SUMMER TRAINING PROJECT REPORT ON

CREDIT CARD AND LOAN ASSESSMENT

FOR THE PARTIAL FULFILLMENT OF THE

Submitted to: Submitted by:

This is to certify that the project work done

Name & Sign of Industry Guide

Hard work, knowledge, dedication & positive attitude all are

Firstly I would like to extend my heartfelt gratitude to Mr. Amit

I emphatically express the regards and gratitude towards my

I, Ms. RIMPLE BAMBA hereby declare that

When I’m working on a problem, I never think about beauty. I think

solution is not beautiful, I know it is wrong.”

I have pleasure in presenting the final project report on “Credit cards

Banking in India originated in the first decade of 18th century. The

RESERVE BANK OF INDIA

By the 1900s, the market expanded with the establishment of banks

Nationalized Banks in India:

Banking System in India is dominated by nationalized banks. The

List of Public Sector Banks in India is as follows:

➢ Allahabad Bank ➢ State Bank of India

Private Banks in India:

List of Private Sector Banks in India is as follows:

 Bank of Rajasthan ➢Bharat Overseas Bank

Axis Bank was the first of the new private banks to

The Bank today is capitalized to the extent of Rs.

The Bank's Registered Office is at Ahmedabad and its

Mission and Values:

 Customer Service and Product Innovation tuned to diverse

To be the preferred financial solutions provider

Public Holding = 57.60%

Dr. Adarsh Kishore Chairman

Registrar and Share Transfer Agent:

The Position as on 31st March 2009 was as under: -

Balance Sheet Size Rs 1,47,722 crore

Total Deposits Rs 1,17,374 crore

Net Advances Rs 81,557 crore

Investments Rs 46,330 crore

Axis Bank has in place a sound technological platform:

Public Sector competitors:

through the respective Business Groups, as under:

The Department presently focuses on the four broad areas

Objective of the study:

COMPANY PROFILE: AXIS BANK

DETAILED DESCRIPTION OF PRODUCTS AND SERVICES:

Four products under Asset Power

 All the Settlement related activities for these exchanges are

In early 1950's most of the markets were choking with surplus

Market Cap (Rs. cr)

On the basis of their Sales:

Net Sales (Rs. Cr)

1. ICICI Bank Ltd.

GOVERNMENT REGULATION IN BANKING:

National Housing Bank Act, 1987

Reserve Bank of India Act, 1934

The thrust on customer segmentation has been a strategic success, as

The card is issued in five currencies:

 Highly Personalized and Customized Services.

Easy Credit Card:

What is Easy Credit Card?

Why is it “Easy” for the Customer?

Easier than Other Modes of Payment:

Easier than Other Credit Cards

Easier than Debit Cards