Shah and Anchor Kutchhi Engineering College DOMS

(Chembur, Mumbai 4000088)

Master in Management Studies (2011-2013) FY-MMS (IInd Semester)

SUBMITTED TO: Prof. Rama Iyer

Interim report on NPAs

DATE OF SUBMISSION: May 28, 2012 Submitted by:-Roll No.49

BACKGROUND
Abhyudaya Co-op. Bank Ltd., one of the leading Urban Co-operative Banks in India, in its outlook and approach, has the objective of progress and prosperity of all. From a humble beginning in January 1964 as a Co-operative Credit society with a share capital of a merely Rs.5,000/- held by 83 members, today Abhyudaya Co-op Bank has become one of the large Urban Co-operative Banks with a "Scheduled Bank" status. The Bank has been converted into a Multi-State Scheduled Urban Coop. Bank " w.e.f. 11th January, 2007. The area of operation which was restricted to the State of Maharashtra has now been extended to Karnataka & Gujarat State. Currently, the capital base of the bank stands at Rs. 72 Crore and Reserves at Rs.735.11 Crore as on 31.03.2011 The bank has 1,38,000 members and more than 14 lakh depositors. The Bank has seen a tremendous growth in deposits. The deposits of the bank are over Rs. 5260.63 Crore as on 31.03.2011, which were Rs. 4170.62 Crore as at the end of the financial year 2009-2010. The loans and advances stood at Rs. 3452.66 Crore as on 31.03.2011. The bank had posted a Net Profit of Rs. 77.96 Crore as on 31.03.2011. The growth rate of the bank compares well with that of others in the sector. The Bank has maintained a steady growth. The bank has been paying dividend @ 15% to its members. The Bank has launched different loan schemes tailor-made to suit the needs of various customers. The schemes aim at providing loans for purchase or construction of residential premises, repair/renovation of house property, purchase of car, seeking higher education and for purchase of household consumer durable. One of the loan schemes, viz. "Udyog Vikas Yojana" is specially designed for the benefit of small entrepreneurs and businessmen. The procedure for sanctioning of loans under the schemes has been simplified and relaxed with a view to benefit the customers and facilitating speedy sanction of loans. The Bank has total 105 branches including a Mobile Bank at Navi Mumbai. Bank is committed to spread network of branches throughout the State and provide much needed banking services to the population, which has been deprived of the banking facilities. Innovative Banking is another area of operation that Abhyudaya is currently focusing on for a sustainable long term growth. The Bank has always endeavored for providing excellent customer service with the help of the latest technology. The Bank has provided fully computerized services to its valued clients. Bank is offering 11 hours fully computerized services and 7 days working at 18 branches and 24 hours ATM service at 86 branches.

BUSINESSES
PERSONAL BANKING BUSINESS BANKING

Saving Bank account Current account Deposit Schemes No Frills Account Any Branch Banking Facility 24X7 ATM Facility

Mobile Banking Internet Banking Customers Service NRO / NRE Accounts Foreign Exchange Dept

LOANS

Personal Loan Housing Loan Education Loan Mortgage Loan Vehicle Loan Loan against Gold Ornaments Loan / Secured Overdraft against Govt. Securities Women Entrepreneurs

PERSONAL LOAN
Purpose 1. Purchase of Consumer Durables / Furniture / Fixtures / Computers 2. Repairs / Renovations of Flat / House 3. Purchase of 2 wheelers 4. Purchase of Gold Ornaments 5. Marriage & other religious ceremonies 6. Domestic / Foreign Tours & Travels 7. Repayment of existing debt 8. Takeover of personal loan from other banks 9. Medical expenses for self / family members etc. :

Maximum Amount : Rs.2.00 Lakh Eligibility : Salaried Persons : (a) Maximum Amount Rs.3.00 Lakh Repayment Upto Rate Kindly refer Interest Rate Chart Sureties : (A) Employees of Limited companies / Large organizations / Govt. Employees : With SDL / ECS facility : upto Rs.1.00 Lakh One Surety with Net Salary of Rs.7,000/and above of 60 Interest : installments :

Above Rs.1.00 Lakh to Rs. 3.00 Lakh Two Sureties with Net Salary of Rs. 6,000/- and above Without SDL / ECS facility : upto Rs.50,000/- One Surety with net salary of Rs.7,000/- and above Above Rs.50,000/- to Rs.2,00,000/- Two Sureties with net salary of Rs.6,000/- and above

(B) Persons employed in reputed companies / organizations : Upto Rs.25,000/- One Surety with net salary of Rs.7,000/- and above Above Rs.25,000/- upto Rs.2,00,000/- Two Surety with net salary of Rs.6,000/- and above

(C) If the borrower is a businessman and employees of other organization with good repaying Two sureties capacity with and net salary owning of a Rs.6,000/house and : above.

Service

Charges

: 1.2%

of

amount

sanctioned

Share Amount : 1% of the amount sanctioned subject to min. Rs.1,000/-

HOUSING LOAN Purpose : Purchase of new flat and construction of house or purchase of old flat / house including extension to

existing flat / house Maximum Amount : "Loans Above Above of Value the Agreement upto Rs.15.00 Rs.20.00 Rs.15.00 Lakh Lakh up up to to Lakh Rs.20.00 Rs.70.00 Charges is Lakh Lakh or 90% 85% 80%

Value+Stampduty+Registration whichever

Market less".

Repayment : Upto 180 installments for all [ maximum ] Rate of Interest : Kindly refer Interest Rate Chart Sureties : For loans upto Rs.20.00 Lakh:- One Surety with Net Income/Salary above Rs.10,000/- per month For loans above Rs.20.00 Lakh:- Two Sureties, with Net Income/Salary above Rs.10,000/or per month One Surety with Net Income/Salary above Rs.20,000/- per month

Purchase of Flats in Building more than 15 years old : For purchase of flat in Building which is more than 15 years old, loan will be considered only if it is certified by the Structural Engineer that the residual life of the building is more than 20 years and the building is in good condition.

Service Charges :

Service charges 0.60% of the loan amt. Share Upto Above Rs.20.00 Lakh :1% of the Amount Loan Lakh amount sanctioned :or : Rs.2,500/Rs.5,000/-

Rs.20.00

EDUCATIONAL LOAN Purpose For education in India and : abroad

Maximum 1. 2. 3. Unsecured Secured For For studies

Amount Loan: studies in in Rs.4.00 India: Rs.10.00 Rs.20.00

: Lakh Lakh Lakh

abroad:

Students

Eligibility

An Indian National, who has secured admission to eligible course. The loan will be sanctioned to the parents of the student and the student will be Co-Borrower.

Eligible

Course

Studies

in

India

Diploma / Graduation / Post-Graduation / Medical / Technical / Professional courses in various disciplines. Computer Certificate courses in reputed institute accredited to the Department of Electronics. and for Pilot Training.

Studies

Abroad

For job oriented Professional / Technical / Medical courses offered by reputed Universities.

MCA,

MBA,

MS

etc.

Courses

conducted

by

CIMA,

London,

CPA

in

USA

etc.

Expenses

considered

for

Loan

Fees / Exam fees / Cost of Books / Equipments / Uniform etc. / Hostel Expenses / Caution Deposit and Travel Expenses / Passage for student studying abroad will also be considered.

Eligibility: Upto 100% of total course fees.

Repayment Moratorium EMI : period : Duration 60 of months the course after + 6

: months. period

Maximum

Moratorium

Rate Kindly refer Interest Rate Chart Sureties

of

Interest

Unsecured Loans upto Rs.4.00 Lakh: - Two sureties net salary / income above Rs.10,000/p.m. Secured Loans above Rs.4.00 Lakh: One surety net salary / income above Rs.10,000/p.m. And Collateral security 100% of the sanction limit in the form of Equitable Mortgage of residential flat and/or

pledge of tangible securities such as NSC / LIP / FDR / RBI Bonds equivalent to at least 100% of the sanctioned limit.

Share 1% of the Loan amount sanctioned, subject to min.Rs.1,000/&

Amount Max.Rs.2,500/-.

Service 1.2% of amount sanctioned

Charges

MORTGAGE LOAN Purpose :

The loan amount can be used for any purpose but shall not be used for purposes prohibited by law. The property should be in the name of Applicant or Co-applicant of family member Maximum Amount:

Rs.20.00 Lakh for Personal use. Rs.100.00 Lakh to business enterprises and self employed and Professional for use in business Repayment : Upto 84 months Eligibility

Amount of loan will depend on repaying capacity / DSCR / Loan to the extent of 60 % of the present value of the property.

Rate Kindly refer

of Interest

Interest Rate

: Chart

Sureties: One surety of good means acceptable to the bank

Service 1.2 % of

Charges the sanctioned

: amount

Share Amount :

2.5 % of the sanctioned amount

VEHICLES LOAN Purpose : Purchase of Private / Commercial Vehicles (New or Used) Maximum amount, Eligibility For Private Vehicles (New) a) Max Rs.30.00 Lakh Eligibility: Salary after loan EMI amount 40% of the Net Income subject to minimum 5000/- & Max 20,000/-

For Private Vehicles (Used) (a) Max Rs.30.00 Lakh Eligibility: Salary after loan EMI amount 40% of the Net Income subject to minimum 5000/- & Max 20,000/For Commercial Vehicles (New) (a) Max Rs.50.00 Lakh For Commercial Vehicles (Used)

(a) Rs.10.00 Lakh not more than 3 years b) Rs.15.00 Lakh for Buses not more than 5 years old
Rate of Int.: Kindly refer Interest Rate Chart Repayment : upto 60 installments Sureties (A) For Private Four Wheelers / Two Wheelers : :

One Surety (salaried family member to be considered) with Net Salary / Income of Rs. 10,000/and above

(B) For Two sureties with

Commercial Net Salary / Income of

Vehicles Rs.10,000/and

: above

Service 1.2% of the

Charges sanctioned

: amount

Share Private Vehicle:

Amount -

: Rs.1,000/-

Other Vehicles:-1.5 % of the sanctioned amount.

LOAN AGAINST GOLD ORNAMENTS

Purpose : The loan amount can be used for any purpose but shall not be used for the purposes prohibited by law

Maximum Amount : Rs. 15.00 Lakh Repayment : 6 / 12 / 24 months

Sureties : NIL Service Charges : @ 0.6% of loan amount subject minimum Rs. 100/- , Maximum Rs. 500/-

Other Charges : Nominal Membership Gold Appraisal Charges Document Stamp Charges Rate of Int. : Kindly refer Interest Rate Chart

Designated Branches :
Now Gold Loan facility is available in almost all Branches.

LOAN / SECURED OVERDRAFT AGAINST GOVT. SECURITIES Purpose : The Loan / Overdraft amount can be used for any purpose but shall not used for purposes prohibited by law Maximum Amount: (A) Against NSC/ KVP/ & RBI Bonds (Own): upto 2 years old :70% of accrued value above 2 years to 4 years old : 75% of accrued

value above 4 years : 85% of accrued value

(B) Loan Against KVP: 90% of Accrued value (c) 80% SOD of Against NSC / KVP / RBI Bonds :

Accrued

value.

(d)

Loan/SOD

against

LIC

Policy

(Own):

 90% of surrender value. Max. 60 installments

3 years for overdraft to be reviewed on yearly basis Repayment : Max. 60 installments

3 years for overdraft to be reviewed on yearly basis Securities Assignment & Pledge of NSC/ KVP/RBI Bonds or of LIC Policies (Own). Rate Kindly refer Interest Rate Chart Sureties : NIL Service Charges : (a) Loans - Nil (b)Secured Overdraft Rs.100/of Int. : :

NPAS