Contents

Chapter - I

Introduction

Chapter - II

Research Methodology

Chapter - III

Company Profile

Chapter - IV

Data Analysis & Interpretation

Chapter - V

Conclusion, Suggestions & Bibliography Chapter – I Introduction INTRODUCTION TO BANKING

A bank is an institution, which deals with money and credit. It accepts deposits from the public, makes the funds available to those who need them and help in the remittance of money from one place to another. In fact, Modern Bank performs such a variety of functions that it is difficult to give precise and general definition of it. It is because of this reason that different economics give different definitions of the Bank.

According to Crowther, “ A bank collects money from those who have it to spare or who are saving it out their incomes, and it lends this money to those who require it.”

In the words of kinley, “ A bank is an establishment which makes to individuals such advances of money as may be required and safely made and to which individuals entrust money when not required by them use.”

According to john Paget, Nobody can be a banker who does not. i) Take deposit accounts. ii) Take current accounts. iii) Issue and pay cheques-crossed and uncrossed for its customers”

Prof. Sayers define the term bank banking distinctly. He defines banks as

“institution whose debts (Bank deposits) are widely accepted in of other people debts to each other.” Again, according to sayers, banking business consists of changing cash for bank deposits and for cash. transferring the bank deposits from one person or corporation to another, giving bank deposits in exchange, government bonds, the secured promises of business to repay and so forth.

According to Indian Companies Act 1949, banking means “ Accepting for the purpose of lending or investment of deposits, of money from the public, repayable on demand or otherwise, and with-drawable by cheque, draft or otherwise.

In short, the term bank, in the modern times, refers to an institution having the following features. i) It deal with money, accepts deposits and advances loans. ii) It also deals with credit, has the ability to create credit, i.e. the ability to

expand its liabilities as a multiple of its reserves. iii) It is commercial institution; it aims at earning profits. iv) It is unique financial institution that creates demand deposits, which serve

as medium of exchange and as a result, the banks manage the payment

system of the country.

EVOLUTION OF BANKING IN INDIA

Roots of Banking Systems in ancient India can be traced 2010 years back.

Manusmrati and Arthshastra of Kautliya bear testimony to the existence and working of banking system in India in ancient times. Ancient banking in our country continued with much or less difference from early vedic period till

Modern banking through Moghals and British period .

The unification of currency under the East India Company and the substitution of single sovereign power in place of petty principles took away the business from the hands of indigenous bankers and shroffs. Western type of banking started

19th century. First joint stock Bank “ Bank of Hindustan “ came into being in 1770 at Calcutta, followed by few other banks which could exist for shorter duration’s only . In the first half of the 19th century three presidency banks. Bank of Bengal

(1860), Bank of Bombay (1840) and bank of Madras (1843) were established.

First Indian Bank, “Oudh Commercial Bank” evolved in 1818, which was followed by Punjab National Bank (1894) etc. These banks were started with small capital, which perhaps the major cause of failure off 87 banks during 1913-17 post. First World War period witnessed a large failure of commercial banks. In

1935 Reserve Bank of India was established which was nationalized in 1949.

However, effective control on banks could be imposed only after banking

Regulation Act 1949.

CLASSIFICATION OF BANKS IN INDIA

In India the banking sector is classified under the following heads:-

 RBI-CENTRAL APEX BANK

 SBI AND SUBSIDIARIES

 PUBLIC SECTOR BANKS

 PRIVATE SECTOR BANKS  FOREIGN BANKS

 CO-OPERATIVE BANKS

 DEVELOPMENT BANKS OR INSTITUTIONAL BANKS

 NON-BANKING FINANCIAL COMPANIES (NBFC)

1. RBI-CENTRAL APEX BANK: The Central bank is the apex institution,

which controls, regulates and supervises the monetary and credit system

of the country. The Reserve Bank was established on April, 1935 under

the RBI Act 1934. But it was nationalized on January, 1949. Important

functions of central bank are: a) It has monopoly of note issue. b) It acts as the banker, agent and financial advisor to the government. c) It has the custodian of member banks reserve. d) It serves as the lender of last resort. e) It is the custodian of nations reserve of international currency. f) It functions as the bank of central clearance, settlement and transfer and it

acts as the controller of the credit.

Beside these functions, Indian Central Bank that is the Reserve Bank of

India also performs many development functions to promote economic development in the country.

II. SBI AND SUBSIDIARIES: The State Bank of India is the biggest

commercial bank and holds. A special position in the modern commercial

banking system in India. It came into existence on june,1 1965, after nationalization of the Imperial Bank of India. In 1955, on the

recommendation of Rural Survey Committee, the Imperial Bank of India

was nationalised and renamed as the State Bank of India through the SBI

Act of 1955 .

Apart from central banking functions, SBI also perform ordinary banking functions such as a) Receiving deposits from and advancing loans to the public against eligible

securities. b) Investing its surplus funds in various securities and treasury bills. c) Buying and selling Gold and Silver d) Acting as an agent of co-operative bank e) Under-writing issues of stock, shares, debentures and other securities in

which it is authorize to invest funds. f) Drawing bills of exchange and granting letters of credits payable out of

India

Example : State Bank of Mysore, State Bank of Hyderabad etc.

III. PUBLIC SECTOR BANKS: These banks are owned and controlled by the government. In India, nationalized banks and regional rural banks come under this category.

Examples: Union Bank of India, Canara Bank etc.

IV PRIVATE SECTOR BANKS: These banks are owned by private individuals of corporations and not by the government and co-operative societies. Example: Vysya Bank, ICICI Bank, HDFC Bank etc.

V. FOREIGN BANKS: These banks are foreign in origin and have their head

offices in the country of its origin.

Example: Citi Bank, A & Z Grinlays, Standard Charted etc.,

VI. CO-OPERATIVE BANKS: Co-operative banks are the institutions

established on co-operative basis and they deal in ordinary banking

business. Like other banks, the co-operative banks also collect funds

through shares, accepts deposits and grant loans. In India, co-operative

credit institutions are organized under co-operative societies and play an

important role in meeting needs in rural areas.

Example: State Co-operative Banks, Vasavi Bank etc.,

VII. DEVELOPMENT BANKS OR INSTITUTIONAL BANKS: These banks

mainly meet medium-term and long-term financial needs of the industries.

Such long-term needs cannot be met by commercial banks, which

generally deal with short-term lending. Its main functions are as follows: a) It accepts long-term deposits b) They grant long-term loans to the industrialists to enable them to purchase

land, construction factory building, purchase heavy machinery etc. c) They help in selling or even underwrite the debentures and shares of the

industrial firms. d) They can also provide information regarding general economic position of

the economy.

Examples: NABARD, EXIM Bank, IFCI etc.

RETAIL BANKING

Retail banking is a combination of product development and selling

strategies, essentially focused on personal banking segment. In the banks

corporate objectives for business growth it is identified as thrust area. It is also

the need of the hour to mobilise a good portfolio of retail banking business, as it

provides a major source for sustaining growth in the industry and thus ensure the

banks position in market place. Some distinguishing features between retail

banking and commercial banking are as under:

KEY DIFFERENCES BETWEEN RETAIL BANKING AND COMMERCIAL BANKING

RETAIL BANKING COMMERCIAL BANKING CUSTOMER It focuses on individual customers It focuses on business, Institute, Corporate It has similarity within the PRODUCT products packaged differently to It has wide product suit the purpose-housing loan, differences, vehicle loan, personal loans, customised loans, consumer durable loan, gold loan with features to etc suit the particular borrower or It is published and applied to all transaction PRICING customers uniformly

There is a point of sale promotion. It is selective and negotiable. PROMOTION Grass root involvement for extensive marketing, media/ It is canvassed through advertisement campaign support individual or institutional is given. contacts and supported through corporate efforts in It appeals to customer’s emotion customization & pricing. and relationship. APPEAL

It appeals to economic logic.

It may be appreciated that retail banking is a very Personalized service sold

through individual efforts with extensive involvement of each and everyone.

From the above said points of distinguishing features, it is now necessary to

analyze the management of retail banking business in more detail.

WHY RETAIL BANKING

The following are the reasons for targeting retail banking:

GROWTH MARKET: The growing income and standard of living ensures that the

market for personal loans is on the increase all the time. The culture of spending

tomorrow’s earnings today has sustained the retail banking growth in all the

developed market place and it is expanding in India too.

ASSURED MARKET: The repeat order one can expect from retail banking

sector is very high. A customer satisfied with the first experience will prefer the

same bank for further needs. Linkage of loan products like housing loans lending

to consumer loan is also an attractive feature of retail banking.

PROFITABLE: Retail banking products provide a good margin over cost of

funds. Economic logic that governs commercial banking does not matter much in retail banking. Retail banking products is accepted for its customer friendly features including efficiency in delivering, selling, strategies, timely availability and such other set of features, wherein price is only one of the parameters.

Hence, a good retail-banking product can be sold at a profitable price by maintaining a good spread.

SIMPLE TO DELIVER: The products are structured for easy documentation and delivery. The entire process can be completed in one sitting if the groundwork is done systematically. It needs no high level of expertise in credit analysis. It needs an aptitude to identify the right customer.

ALLOWS EXTENSIVE PARTICIPATION: Retail banking allows wider participation from branches and members of staff. Each one can play an important role in promoting or delivering retail banking products.

ORIENTATION IN RETAIL BANKING

Developing a retail banking business requires two essential orientations.

They are :

 Product Orientation

 Selling orientation

1. PRODUCT ORIENTATION: Retail banking deals with structured products that appeal to personal and emotional needs. Personal Loans under retail banking will essentially address the following needs:  Loans for housing and house improvement.

 Loans for consumer durables to sustain a progressive living standard.

Loans for personal needs, which may cover, travel, social, medical and other lumpsum expenses.

The first two are asset based lending while the third mainly relate to the income and ease of recovery from salary or income flow. Based on the three needs, products are packaged and sold with distinguishing features depending on the target group and appeal to customer.

The advantage of retail banking is that product differentials can be built in at the point of sale by the branch and need not necessary be a corporate product handed over by the central office. For example.

 A tie-up with a travel agent for personal loan to their customers for financing

vacation is a distinguished product from the plain personal loan scheme.

 An arrangement with the computer learning institute for extending personal

loan scheme.

 An arrangement with the computer learning institute for extending personal

loan to parents for payment of fees of their ward is a product with distinct

flavor.

There can be many such illustrations, which can be developed

Through product orientation at the branch level. Competition will reduce the differences in most of the basis features. It is through product orientation one can retain the attractiveness on ongoing basis. 2. SELLING ORIENTATION: Retail banking is aggressive selling. For strategy one need to differentiate two segments of the market-selling to individuals and selling to groups.

SELLING TO INDIVIDUAL:

Individuals can be drawn from the banks existing client base, which in itself is large and sustaining. It is here that the selling orientation at the staff level including the counter staff will be of utmost advantages to bank. This will require each branch manager to involve their staff, familiarize them with the scheme and identify selling strategies suited to the branch profit of customers.

As stated earlier retail banking enable wide participation at individual level.

Every staff can promote can these products among their friends and relatives and also the members in the neighbors of their housing colonies. The multiple effect of such participation can be phenomenal in converting them into retail banking customer.

SELLING TO GROUPS:

The next is the group approach through the banks connections with corporate, government departments, institution etc. Personal loan product will be immense use in such tie-ups, as it offers a convenient line of credit to individuals purely based on tie-ups for salary disbursement. Ex State Bank of Mysore has tied up with MARUTI to float another attractive financing schemes for cars. Maruti cars can be bought loans stretching up to seven-year tenure with a monthly payment for every Rs1 lakh pegged at Rs.1712. The bank is prepared to finance the car against its on the road price, which is the sum of ex-showroom price plus road tax and insurance costs.

PRICING ISSUES

Individual do not seek to bargain. They normally go by convenience and speed of loan facility. To promote retail banking every bank should known the product features of competitors both from banking and non-banking groups. Everyone is in this business to generate profits and hence will maintain a reasonable pricing model. Those who declare lower rates have hidden cost in one form or another.

As such, banks should focus on convincing customers about the strength of their product and the efficiency of the delivery system.

However, when it comes to bulk booking through institutional connections, some negotiation may be witness. Since the cost of administrating such loans are on the lower side as compared to individual loans, a package scheme can be worked out by Central Bank of extend some concession on merit on case-to- case basis.

SOME IMPORTANT ASPECTS

To promote retail banking banks have to be ready with some basis needs all the time for completing the loan formalities in a quick way. These are.

 Publicity materials ready and handy forms and documents in convenient sets

of quick execution when the deal is finalised.  Full information about the scheme with latest amendments conveyed by

corporate office.

In promoting retail banking time is the essence for success. The bank

Cannot call the customers a second time to complete documents. There are others waiting to pick them up.

THE ISSUES INVOLVED

Through principal of marketing as applicable to marketing of services, also apply to retail banking. There are some crucial differences.

 The market for retail, for example, is far more regulated than many service

market situations, quite a large number of variables are such that one

cannot really play around with them.

 It is a high operating cost environment. It is obvious that if thousand of

loans amounting to a crore rupees are being arranged, the operating cost

would be higher that if one loan of one crore is being made. Higher

margin therefore becomes imperative.

 Retail banking is simply not feasible without automation, handling of

volume of that order without for speed of handling would be impossible.

Then, while prices for services to a certain extend depend upon volumes and net returns on funds, in the Indian context, strictly speaking prices are controlled. As opposed to products, where appeals can be created by skills use of colour, perfume, packaging and design the product here is devoid to sensual appeal. In another distinguishing features, in retail banking it is difficult for competition to eat into the banks market share if they have once established a relationship. In case of organizational clients, it is easier to sway customers by varying changes by fractions of percentage but individually, most consumers are not willing to switch for 1/8th of a percent. The possibilities of creating a franchise, as the relationship is on person level, is far higher in retail banking.

Financial services, retail banking included gets distributed through a limited physical distribution channel which is again a decision issue when increased volume of service delivery is under consideration.

CLASSIFICATION OF LOANS

Loans are classified into

1. Priority Sector

2. Non-Priority sector.

Priority Sector Lending: It is again divided into three broad groups, which are as follows:

1. Primary Sector: It comprises of lending to agricultural and allied

agricultural activities like dairy, poultry, fishery, animal husbandry, bee

keeping, horticulture, mushroom culture and etc.

2. Secondary Sector: It comprises of lending of small-scale industry that is

direct and indirect lending to small-scale industrial sector. 3. Tertiary Sector: It comprises of lending to trade both retail trade and small

business activities, professional and self-employed groups, road and

water transport operators, education and consumption loans.

Lending to priority sector mainly comes under target oriented lending decided by various benchmarks given to commercial banks by RBI from time to time. These benchmarks let the commercial banks to invest 40% of their overall lending to these sectors, which has resulted the banks to lend at lower interests rates. The increase in non-performing assets in the priority sector loans as well as lower interest rates resulted with decrease in profitability of the banks.

After the deregulation of interest rates by the central bank and to increase the profitability under income recognition norms, banks are in search of good priced loan products with a demand in the clientele market. On set of these perceptions, banks identified retail banking as a thrust area.

The retail banking mainly comprises of housing loans, consumer durable loans, personal loan, vehicle loans and gold loans. These loans come under the purview of non-priority sector where banks can fix effective interest rates and also identify broad base.

THE MAHESH CO-OPERATIVE URBAN BANK

The Urban credit societies were organised in India soon after the enactment of the first co-operative societies Act in 1904. These societies were mainly intended to promote thrifts to provide credit to needy members thus offering relief from the of money lenders. These societies undertake various bank services beside providing credits styled themselves as urban co-operative bank.

The urban bank are undertaking various banking activities which beside acceptance of deposits, lending for the promotion of industrial growth particularly to SSI & cottage industries for various types of trades profession, discounts, collection of bills, provision of safe deposits, lockers facilities, provision by of a bank guarantees, foreign exchange etc after study sizeable proportion of the total deposits of the banking structure in the country. Therefore certain provisions of the banking regulations act 1949 which came into force on 16th March 1949 were extended to Co-operative banks effect from 1st March 1966.

The growth of number of branches variety business undertaken by co-operative urban bank. Every co-operative bank have they own banking manual which is provided by the head-office. There own role regulations as well as operation of the banking system.

The A.P. Mahesh Co-operative Urban Bank was incorporated in 30th June 1997.

The banking service system was actually started in 1978 with the working capital of Rs.30.04 Lakhs, Begum Bazar has emerged as the first branch of the Bank.

The bank had 2216 members initially as a share holders of the bank with share capital of Rs.4,40,020. The statutory reserve fund with RBI was Rs.1,158 and the other reserves was Rs.1,534. In the first year of the banking operations bank collected the of as many as Rs.24.55 lakhs and lended the advances of Rs.9.53 lakhs, therefore securing a net profit of Rs.0.03 lakhs. At present the profit of the bank is 482.57.

In the very next year i.e., 1979-80, membership was classified into two categories such as A & B reason behind this was the member should has A class shares to take the loan from the bank and the member if any taking the surety/guarantee should be a member of B class shares. At present A class membership of A class is 38711 and the paid up share capital of the bank is

Rs.10.32 crores. The share of B class is Rs.0.04 crores and the membership is

76343. The bank has got its scheduled bank recognisation from Reserve bank of

India in 26th October 1996.

Slowly and steadily the bank has registered a tremendous growth in banking system, expanding its banking activities through the Andhra Pradesh. The bank now has as many thirty branches including the head office situated in Hyderabad.

The banks proposal to open branches in coastal districts at Vijayawada, Guntur,

Rajahmundry and Visakhapatnam was accepted by R.B.I. Soon the bank will implement expansion plan drawn to open branches in Telangana region. The banks proposal to convert the Banks registration to Multi State Co-Operative

Societies Act, 1984 is before you for consideration and approval in Maharastra,

Rajasthan, Madhya Pradesh, Karnataka and West Bengal.

All the branches are fully furnished and equipped with the latest technologies. All branches are fully computerised. Bank as success fully completed the implementation of “Total Automation Project at all its branches apart from the head office. Further, the bank propose to open all new branches fully automated.

Considering Training as one of the important tools of Human Resources

Development, Bank has been deputing staff and officers to various Training

Institutions of national repute such as Vaikunt Mehta Institute of Co-operative

Management (VAMNICOM), Pune, National Institute of Bank Management,

College of Agriculture Banking, National Institute of Small Industry Extension

Training (NISIET), Reserve Bank of India, etc.

Audit is treated as one of the management tools to regulate the working of organisation. Professional Chartered Accountant Firms to conduct audit of the various branches of the bank. Statutory audit for the year is conducted by a

Chartered Accountant firm appointed by the Registrar of Co-operative Societies,

Govt. of Andhra Pradesh.

The bank released donations from the Common Good Fund to an extent of

Rs.11.74 lakhs during the period under report.

TERMS AND CONDITIONS FOR DIFFERENT LOANS

TERMS AND CONDITIONS OF TERM LOAN

Name & Address of the Unit : M/s

1. Amount of term loan : Rs. Lakhs.

2. Purpose of term loan : 3. Period of term loan : 60 months

4. Moratorium :

5. Method of Repayment : In installment Rs.Lakhs per quarter

6. Repayment : repayment shall commence after months from the date of disbursement of any part of term loan.

7. Security :

a) Hypothecation of Plant & Machinery, existing, proposed and all

future acquisition.

b) Extn. of all the securities/sureties offered to the credit facility

sanctioned by the bank.

8. Interest : 18% p.a. subject to changes from time to time as per

Boards decision.

9. Interest rate variability clause: Notwithstanding what is contained herein,

the borrower shall pay the bank interest at such other rates from time to

time be fixed by the bank and intimated to the borrower/company/firm

subject to such rates not exceeding the rates prescribed by the Reserve

Bank of India.

10. The bank will have the right to examine at all times, the units/firms/

companies books of account and to have the units/firms/company’s/

inspected from time to time by officer of the bank and/or qualified auditors

and the banks choice cost of such inspection shall be borne by

units/firm/company. 11. During the currency of the banks credit facilities, the unit/firm/ company

will not without the banks permission in writing:

a) Effect any change in capital structure.

b) Enter into borrowings arrangement either secured or

unsecured with any other bank or financial institution, company or

otherwise.

c) Undertake guarantees obligation on behalf of any other

company/firm/units etc.

d) Repay unsecured loans obtained from friends/relatives or others.

12. The unit will keep the bank informed of the happenings, if any event likely

to have substantial affect on their profit or business, if, for instance, the

monthly production/sales are substantially less than what had been

indicated to the bank. The unit/firm/company will inform the bank

accordingly with explanations and the remedial steps proposed to be

taken.

13. The unit will place with the bank all its banking business including foreign

exchange, if any, and deposits.

14. Proper books of accounts should be maintained and yearly accounts

should be submitted to the bank and these account books should be

accessible to the field staff during the course of periodical inspections.

The returns submitted to the sales tax and income authorities should also

be produced to the bank annually for perusal and records. 15. Important events like suspension of manufacturing activities, change of

premises fire in the factory, labour troubles/strikes or any event that is

likely to effect production and endanger banks security should be

immediately brought to the notice to the bank detailing the records leading

to such an eventuality and steps taken to overcome it.

16. All legal and incidental charges may have to be incurred by the bank in the

conduct of the account shall be debited to the units/firms/companies

account maintained with us.

17. The bank shall reserve the right to call up the loan at any time in the

happening of may event which in the opinion of the bank is likely to

jeopardize the banks interest.

18. All cash and bank operations to be reflected in the account.

19. Any change in the constitution of the unit shall have the prior written

approval of the bank.

20. A stamped declarations is to be obtained from the owner of property

offered as primary and collateral security affirming that the propriety is free

from any adverse claims that it is not a subject matter of any litigation and

that no notice has received from the municipality for acquisition

enrichments of repairs or road widening. 21. A credit facilities sanctioned will be released only after obtaining

favourable legal opinions from our panel advocates and that the

documents shall be strictly submitted as per the legal advisor/s opinion.

22. Upto date non-encumbrance certificate shall be submitted.

23. An irrevocable authorisation letter is to be submitted authorising the bank

to pay the municipal tax, electricity charges etc, and any other dues to the

government and quassi government departments pertaining to the said

property as and when demand notices are received by raising the debit to

term loan account. Further the applicant shall regularise the account

within one week from the date of notice from the bank.

24. All the securities i.e., primary and collateral shall be comprehensively

insured with bankers clause and a copy of the same shall be forwarded to

the applicant under registered post acknowledgement due with an advise

to verify and ensure that all the assets offered as primary and collateral

security have been insured for full value and there is no under or over or

dual insurance and anything of these nature shall be brought to the banks

notice within 15 days from the date of the letter and no claim of any sort

will be entertained thereafter.

25. An irrevocable authorisation letter shall be submitter by the applicant

authorising the bank to raise a debit in OCC/OD/Current account as and

when interest and intalments are due for transfer to term loan account and if the account gets overdrawn due to such debit the same will be

regularised within 7 date from the date of debit.

26. Interest component charges during the gestation/moratorium period shall

be recovered on quarterly basis i.e., as when debited to the account.

27. Credit facilities shall be released by way of direct payment to the dealer

i.e., supplier of particular asset after collecting margin money. It shall be

ensured that earnest money if any paid towards the supply of particular

asset, stamp receipts shall be obtained. Further where the ensured that

the cheques have been honoured and a certificate from the drawee bank

shall be obtained.

28. Periodical inspection shall be conducted.

29. Banks board shall be displayed at all such places where the assets

financed by the bank are installed/places.

30. It shall be ensured that capital/unsecured loans as projected in the cost of

project and means of finance i.e., Rs.89.13 lakhs have been brought in by

the unit. It should be certified by a Chartered Accountant.

31. Where credit facilities are to be released by way of reimbursement the

same shall be done only after obtaining a copy of invoice and other

relevant documents. Inspection shall be conducted by the Branch

Officials before the release of the facilities. 32. An irrevocable undertaking letter shall be obtained from all the unsecured

lenders that they will not demand the remain of unsecured loans till the

redemption of the banks credit facilities i.e., existing proposed subject and

all future sanctions.

33. The bank is at liberty to amend/add/delete any of the aforesaid term loan.

34. Processing charges will be collected as per the norms in vogue.

35. The branch shall release any part of the term loan only on submission of

relevant quotations for purchase of the proposed plant & machinery and

estimates for the civil works as mentioned in the office note. The loan

amount shall be restricted to 75% and 50% respectively of such amount.

36. The following copies of registration/approvals shall be obtained and kept

on records.

a) Copy of SSI registration certificates of the unit.

b) Copy of registration with APGSTM CST, Excise and NOC from

APPCB

37. The place of business shall be inspected by Branch officials and the

inspection report thereof shall be kept on records.

TERMS AND CONDITIONS

KEY CASH CREDIT/KEY CUM TRUST FACILITY: M/s :

1. Amount of loan sanctioned : Rs. Lakhs

2. Interest : 18% p.a. subject to changes from time to time as per

Boards decision.

3. Security : a) Pledge of stocks

b) The securities offered to working capital limits shall also be extended.

4. Storage and Possession : Stocks under pledge and kept in godowns

should be well built. Stocks should be stored properly so as to render

easy verification and identifications is possible.

5. Margin : 35%

6. Basis of valuation : Cost price of market price or Invoice price whichever is

lower.

7. Inspection : Care should be taken to ensure that there is periodical

turnover in the stocks.

8. Insurance : Stocks to be comprehensively insured for their full value

under joint names.

9. Period of sanction : One year from the date of present sanction.

10. Others :

a) Pledge boards to be prominently displayed at the entrance of the

units/firms/company godowns/premises wherein the stocks are

stored. b) Trust period should be exceed 20 days from the date of

disbursement. Incase of non payment on due date, goods shall be

pledged under lock and key of the Bank in the borrowers godown.

c) Delivery of goods pledged shall be taken within 3 months of

pledgement.

11. All other terms and conditions mentioned in open cash credit shall be

applicable.

TERMS AND CONDITIONS

BOOK DEBTS LIMITS:

M/s.

Rs. (Rupees)

With an interchangeability of Rs. lakhs from OCC (Stocks) to Book

Debts and vice-versa.

1. Statement of book debts shall be submitted every month.

2. All the book debts/receivable are to be assigned banks favour.

3. Margin % to be maintained on book debts outstanding every month

and drawing power to be fixed at the above rate as and when the party

submits copy of duly acknowledged delivery challan and bill.

4. A separate register should be maintained to ensure that the payments are

directly received in the account and also to properly monitor the account. Immediately after 60 days the borrowers OCC account should be debited

with the amount of credit given against each bill.

5. The period of book debts shall be 60 days only.

6. Interest shall be charged @ % p.a. subject to changes as per the

banks board decision from time to time.

7. The limit shall be valid for a period of one year only.

8. The borrower is prohibited from using the loan amount or any part thereof

for any purpose other than for which it is sanctioned and if the bank

apprehends or it has reasons to believe that the borrower has violated or it

violating this condition it has right to recall the loan amount or any part

thereof at once notwithstanding anything to the contrary contained in the

loan agreement or any other agreement.

9. The collateral security/ies offered to OCC (Stock) limit shall be extended to

this credit facility also.

10. Processing/commitment charges shall be collected as per HO circular

issued from time to time.

BANK WISE -- BRANCH STATISTICS

Table No. 12 : Bank-Group, Bank and Population Group-Wise Number of Branches of Commercial Banks – March 2012

POPULATION GROUP BANK GROUP / BANK RURAL SEMI- URBAN METRO- TOTAL URBAN POLITA BRANCHE N S 1 2 3 4 5 6 SBI AND ITS ASSOCIATES 5512 3998 2247 1696 13453 State Bank of Bikaner and Jaipur 311 223 131 131 796 State Bank of Hyderabad 292 268 184 131 875 State Bank of India 4104 2439 1425 1003 8971 State Bank of Indore 131 128 59 98 416 State Bank of Mysore 213 145 106 135 599 State Bank of Patiala 274 196 164 83 717 State Bank of Saurashtra 139 133 69 68 409 State Bank of Travancore 48 466 109 47 670

NATIONALISED BANKS 13754 6902 6470 5489 32615 Allahabad Bank 973 311 362 249 1895 Andhra Bank 387 288 232 129 1036 Bank of Baroda 1158 523 460 481 2622 Bank of India 1252 472 406 397 2527 Bank of Maharashtra 547 219 206 242 1214 Canara Bank 762 649 517 490 2418 Central Bank of India 1399 742 535 423 3099 Corporation Bank 173 126 174 178 651 Dena Bank 430 213 192 253 1088 Indian Bank 491 356 318 229 1394 Indian Overseas Bank 555 351 307 256 1469 Oriental Bank of Commerce 236 274 277 191 978 Punjab and Sind Bank 294 108 211 136 749 Punjab National Bank 1928 701 695 499 3823 Syndicate Bank 653 404 375 334 1766 UCO Bank 796 327 324 279 1726 Union Bank of India 814 450 422 341 2027 United Bank of India 649 201 243 210 1303 Vijaya Bank 257 187 214 172 830

FOREIGN BANKS — 2 22 213 237 ABN Amro Bank N.V. — — — 11 11 Abu Dhabi Commercial Bank Ltd. — — — 2 2 American Express Bank Ltd. — — — 4 4 Arab Bangladesh Bank Limited — — — 1 1 Bank Internasional Indonesia — — — 1 1 Bank Muscat International S.A.O.G. — — — 1 1 Bank of America N.T. and S.A. — — — 4 4 Bank of Bahrain & Kuwait B.S.C. — — — 2 2 Bank of Ceylon — — — 1 1 Bank of Nova Scotia — — 1 4 5 Bank of Tokyo Mitsubishi Ltd. — — — 4 4 Barclays Bank PLC — — — 2 2 BNP Paribas — — — 10 10 China Trust Commercial Bank — — — 1 1 Cho Hung Bank — — — 1 1 Citibank N.A. — — 3 14 17 Commerzbank A.G. — — — 1 1 Credit Agricole Indo Suez — — — 2 2 Credit Lyonnais — — — 4 4 Deutsche Bank (Asia) — — — 5 5 Dresdner Bank A.G. — — — 2 2 Hongkong and Shanghai Banking— — 7 23 30 Corpn. Ltd. ING Bank N.V. — — — 2 2 JPMorgan Chase Bank — — — 1 1 KBC Bank N.V. — — — 1 1 Krung Thai Bank Public Company— — — 1 1 Limited Mashreq Bank PSC — — — 2 2 Mizuho Corporate Bank Ltd. — — — 1 1 Oman International Bank S.A.O.G. — — 1 1 2 Oversea-Chinese Banking Corporation— — — 1 1 Ltd. Societe Generale — — — 4 4 Sonali Bank — — — 1 1 Standard Chartered Bank — — 5 54 59 Standard Chartered Grindlays Bank Ltd. — 2 5 35 42 State Bank of Mauritius Ltd. — — — 3 3 Sumitomo Mitsui Banking Corporation — — — 2 2 The Development Bank of Singapore— — — 1 1 Ltd. The Siam Commercial Bank Limited — — — 1 1 The Toronto-dominion Bank — — — 1 1 UFJ Bank Ltd. — — — 1 1

REGIONAL RURAL BANKS 12062 2045 359 17 14483 Adhiyaman Grama Bank 20 5 — — 25 Akola Gramin Bank 43 2 2 — 47 Alaknanda Gramin Bank 45 4 — — 49 Aligarh Gramin Bank 68 10 7 — 85 Allahabad Kshetriya Gramin Bank 77 5 1 — 83 Alwar-Bharatpur Anchalik Gramin Bank 77 11 2 — 90 Ambala-Kurukshetra Gramin Bank 38 — 1 — 39 Aravali Kshetriya Gramin Bank 52 11 1 — 64 Arunachal Pradesh Rural Bank 17 2 — — 19 Aurangabad Jalna Gramin Bank 50 2 2 — 54 Avadh Gramin Bank 95 13 1 5 114 Baitarani Gramya Bank 87 3 — — 90 Balasore Gramya Bank 58 4 — — 62 Ballia Kshetriya Gramin Bank 81 8 — — 89 Banaskantha Mehsana Gramin Bank 65 9 — — 74 Bara Banki Gramin Bank 83 6 — — 89 Bardhaman Gramin Bank 84 5 1 — 90 Bareilly Kshetriya Gramin Bank 63 10 8 — 81 Bastar Kshetriya Gramin Bank 58 5 — — 63 Basti Gramin Bank 99 4 — — 103 Begusari Kshetriya Gramin Bank 14 7 — — 21 Bhagalpur-Banka Kshetriya Gramin19 3 2 — 24 Bank Bhagirath Gramin Bank 96 10 2 — 108 Bhandara Gramin Bank 38 6 1 — 45 Bhilwara Ajmer Kshetriya Gramin Bank 40 8 5 — 53 Bhojpur Rohtas Gramin Bank 138 17 2 — 157 Bijapur Grameena Bank 75 8 1 — 84 Bikaner Kshetriya Gramin Bank 24 3 1 — 28 Bilaspur-Raipur Kshetriya Gramin Bank 125 12 2 — 139 Bolangir Anchalik Gramya Bank 137 11 2 — 150 Buldhana Gramin Bank 16 9 — — 25 Bundelkhand Kshetriya Gramin Bank 70 16 — — 86 Bundi Chittorgarh Kshetriya Gramin58 6 — — 64 Bank Cachar Gramin Bank 33 7 4 — 44 Cauvery Grameena Bank 107 14 3 — 124 Chaitanya Grameena Bank 35 13 3 — 51 Chambal Kshetriya Gramin Bank 12 14 5 — 31 Champaran Kshetriya Gramin Bank 119 23 — — 142 Chandrapur Gadchiroli Gramin Bank 51 8 1 — 60 Chhatrasal Gramin Bank 65 20 — — 85 Chhindwara Seoni Kshetriya Gramin57 10 — — 67 Bank Chickmagalur-Kodagu Grameena Bank 44 2 — — 46 Chitradurga Gramin Bank 83 7 1 — 91 Cuttack Gramya Bank 119 2 1 — 122 Damoh Panna Sagar Kshetriya Gramin53 15 3 — 71 Bank Devipatan Kshetriya Gramin Bank 70 8 — — 78 Dewas-Shajapur Kshetriya Gramin Bank47 9 3 — 59 Dhenkanal Gramya Bank 45 8 — — 53 Dungarpur Banswara Kshetriya Gramin38 3 — — 41 Bank Durg Rajnandgaon Gramin Bank 86 9 4 — 99 Ellaquai Dehati Bank 75 10 3 — 88 Etah Gramin Bank 47 12 — — 59 Etawah Kshetriya Gramin Bank 47 5 1 — 53 Faizabad Kshetriya Gramin Bank 65 1 1 — 67 Faridkot-Bathinda Kshetriya Gramin15 6 1 — 22 Bank Farrukhabad Gramin Bank 69 10 3 — 82 Fatehpur Kshetriya Gramin Bank 51 3 1 — 55 Ganga Yamuna Gramin Bank 36 2 1 — 39 Gaur Gramin Bank 124 19 5 — 148 Giridh Kshetriya Gramin Bank 23 4 — — 27 Godavari Grameena Bank 26 4 3 — 33 Golconda Grameena Bank 16 7 3 — 26 Gomti Gramin Bank 78 4 2 — 84 Gopalganj Kshetriya Gramin Bank 52 7 — — 59 Gorakhpur Kshetriya Gramin Bank 186 12 2 — 200 Gurdaspur Amritsar Ksh.Gramin Vikas52 — 1 — 53 Bank Gurgaon Gramin Bank 104 12 4 — 120 Gwalior Datia Kshetriya Gramin Bank 26 5 1 — 32 Hadoti Kshetriya Gramin Bank 65 17 4 — 86 Haryana Kshetriya Gramin Bank 75 12 3 — 90 Hazaribagh Kshetriya Gramin Bank 25 5 — — 30 Himachal Gramin Bank 100 6 — — 106 Hindon Gramin Bank 19 — 2 — 21 Hissar-Sirsa Kshetriya Gramin Bank 39 3 3 — 45 Howrah Gramin Bank 53 3 3 — 59 Indore Ujjain Kshetriya Gramin Bank 30 6 1 1 38 Jaipur Nagaur Aanchalik Gramin Bank 121 21 — 1 143 Jammu Rural Bank 88 3 1 — 92 Jamnagar Rajkot Gramin Bank 49 2 2 — 53 Jamuna Gramin Bank 25 9 7 — 41 Jhabua-Dhar Kshetriya Gramin Bank 71 14 — — 85 Junagadh-Amreli Gramin Bank 34 3 1 — 38 Ka Bank Nongkyndong Ri Khasi Jaintia 46 3 2 — 51 Kakathiya Grameena Bank 32 4 4 — 40 Kalahandi Anchalik Gramya Bank 71 7 — — 78 Kalpatharu Grameena Bank 62 16 2 2 82 Kamraz Rural Bank 79 2 — — 81 Kanakadurga Grameena Bank 22 2 5 — 29 Kanpur Kshetriya Gramin Bank 77 12 — 5 94 Kapurthala Ferozpur Kshetriya Gramin36 6 — — 42 Bank Kashi Gramin Bank 73 4 4 — 81 Kisan Gramin Bank,Budaun 43 8 2 — 53 Kolar Gramin Bank 52 11 — — 63 Koraput-Panchabati Gramya Bank 81 9 — — 90 Kosi Kshetriya Gramin Bank 133 25 6 — 164 Krishna Grameena Bank 105 5 6 — 116 Kshetriya Gramin Bank, Hoshangabad 70 21 — — 91 Kshetriya Kisan Gramin Bank, Mainpuri 55 15 — — 70 Kutch Grameen Bank 26 6 3 — 35 Lakhimi Gaonlia Bank 90 8 2 — 100 Langpi Dehangi Rural Bank 36 7 — — 43 Madhubani Kshetriya Gramin Bank 73 16 — — 89 Magadh Gramin Bank 149 15 — — 164 Mahakaushal Kshetriya Gramin Bank 27 11 3 — 41 Malaprabha Grameena Bank 168 52 15 — 235 Mallabhum Gramin Bank 169 5 2 — 176 Malwa Gramin Bank 38 2 1 — 41 Mandla Balaghat Kshetriya Gramin44 10 — — 54 Bank Manipur Rural Bank 21 5 3 — 29 Manjira Grameena Bank 56 9 — — 65 Marathwada Gramin Bank 184 42 6 — 232 Marudhar Kshetriya Gramin Bank 51 9 — — 60 Marwar Gramin Bank 116 16 2 — 134 Mayurakshi Gramin Bank 60 5 — — 65 Mewar Aanchalik Gramin Bank 46 7 5 — 58 Mithila Kshetriya Gramin Bank 72 7 1 — 80 Mizoram Rural Bank 45 4 3 — 52 Monghyr Kshetriya Gramin Bank 72 33 1 — 106 Murshidabad Gramin Bank 32 7 1 — 40 Muzaffarnagar Kshetriya Gramin Bank 23 1 1 — 25 Nadia Gramin Bank 51 11 3 — 65 Nagaland Rural Bank 4 4 — — 8 Nagarjuna Grameena Bank 112 30 3 — 145 Nainital Almora Kshetriya Gramin Bank 51 9 — — 60 Nalanda Gramin Bank 60 4 2 — 66 Netravati Grameena Bank 12 8 3 — 23 Nimar Kshetriya Gramin Bank 57 12 2 — 71 North Malabar Gramin Bank 34 112 2 — 148 Palamau Kshetriya Gramin Bank 69 6 — — 75 Panchmahal Vadodara Gramin Bank 45 9 — 3 57 Pandyan Grama Bank 115 41 6 — 162 Parvatiya Gramin Bank 26 1 — — 27 Patliputra Gramin Bank 17 3 1 — 21 Pinakini Grameena Bank 66 20 5 — 91 Pithoragarh Kshetriya Gramin Bank 24 1 — — 25 Pragjyotish Gaonlia Bank 128 28 6 — 162 Pratapgarh Kshetriya Gramin Bank 67 4 — — 71 Prathama Bank 141 17 8 — 166 Puri Gramya Bank 100 4 7 — 111 Rae Bareli Kshetriya Gramin Bank 69 4 — — 73 Raigarh Kshetriya Gramin Bank 53 7 — — 60 Rajgarh Sehore Kshetriya Gramin Bank 39 7 — — 46 Ranchi Kshetriya Gramin Bank 69 7 4 — 80 Rani Lakshmi Bai Kshetriya Gramin29 12 3 — 44 Bank Ratlam Mandsaur Kshetriya Gramin24 16 2 — 42 Bank Ratnagiri Sindhudurg Gramin Bank 35 4 — — 39 Rayalaseema Grameena Bank 108 32 8 — 148 Rewa-Sidhi Gramin Bank 74 5 4 — 83 Rushikulya Gramya Bank 67 11 4 — 82 Sabarkantha-Gandhinagar Gramin Bank22 7 1 — 30 Sagar Gramin Bank 101 10 4 — 115 Sahyadri Gramin Bank 22 6 1 — 29 Samastipur Kshetriya Gramin Bank 64 9 — — 73 Samyut Kshetriya Gramin Bank 150 17 — — 167 Sangameshwara Grameena Bank 51 14 2 — 67 Santhal Parganas Gramin Bank 94 9 — — 103 Saran Kshetriya Gramin Bank 62 1 1 — 64 Sarayu Gramin Bank 39 4 — — 43 Shahdol Kshetriya Gramin Bank 34 8 — — 42 Shahjahanpur Kshetriya Gramin Bank 31 3 2 — 36 Sharda Gramin Bank 54 4 1 — 59 Shekhawati Gramin Bank 79 20 1 — 100 Shivalik Kshetriya Gramin Bank 38 2 1 — 41 Shivpuri Guna Kshetriya Gramin Bank 44 9 4 — 57 Shri Sathavahana Grameena Bank 41 4 2 — 47 Shri Venkateswara Grameena Bank 58 10 3 — 71 Singhbhum Kshetriya Gramin Bank 71 5 — — 76 Siwan Kshetriya Gramin Bank 65 4 — — 69 Solapur Gramin Bank 28 6 1 — 35 South Malabar Gramin Bank 36 152 9 — 197 Sravasthi Gramin Bank 83 4 1 — 88 Sree Anantha Grameena Bank 60 10 4 — 74 Sri Saraswati Grameena Bank 63 9 — — 72 Sri Visakha Grameena Bank 126 31 7 — 164 Sriganganagar Kshetriya Gramin Bank 35 8 1 — 44 Srirama Grameena Bank 24 2 1 — 27 Subansiri Gaonlia Bank 40 4 1 — 45 Sultanpur Kshetriya Gramin Bank 91 2 — — 93 Surat Bharuch Gramin Bank 31 5 1 — 37 Surendranagar Bhavnagar Gramin Bank32 7 2 — 41 Surguja Kshetriya Gramin Bank 79 4 — — 83 Thane Gramin Bank 23 1 1 — 25 Thar Aanchalik Gramin Bank 63 5 1 — 69 Tripura Gramin Bank 71 11 4 — 86 Tulsi Gramin Bank 77 7 — — 84 Tungabhadra Gramin Bank 123 30 8 — 161 Uttar Banga Kshetriya Gramin Bank 78 31 2 — 111 Vaishali Kshetriya Gramin Bank 148 31 1 — 180 Vallalar Grama Bank 17 5 1 — 23 Valsad-Dangs Gramin Bank 34 6 1 — 41 Varada Grameena Bank 19 9 — — 28 Vidisha-Bhopal Kshetriya Gramin Bank 16 7 — — 23 Vidur Gramin Bank 32 7 — — 39 Vindhyavasini Gramin Bank 38 2 2 — 42 Visveshvaraya Grameena Bank 22 2 2 — 26 Yavatmal Gramin Bank 12 11 1 — 24

OTHER SCHEDULED COMMERCIAL1140 1762 1333 1156 5391 BANKS Bank of Punjab Limited — 19 24 36 79 Bank of Rajasthan Ltd. 105 71 64 70 310 Benaras State Bank Ltd. 15 39 38 13 105 Bharat Overseas Bank Ltd. 8 8 31 31 78 Catholic Syrian Bank Ltd. 33 167 57 26 283 Centurion Bank Ltd. — 14 19 26 59 City Union Bank Limited 32 33 33 21 119 Development Credit Bank Ltd. 2 10 10 32 54 Dhanalakshmi Bank Ltd. 24 81 30 17 152 Federal Bank Ltd. 30 249 76 56 411 Ganesh Bank of Kurundwad Ltd. 8 11 7 2 28 Global Trust Bank Limited 7 13 18 45 83 HDFC Bank Ltd. 6 31 41 88 166 ICICI Bank Limited 82 79 86 99 346 IDBI Bank Limited 5 14 23 34 76 Indusind Bank Ltd. — 9 9 23 41 Jammu & Kashmir Bank Ltd. 219 34 92 41 386 Karnataka Bank Ltd. 96 87 101 75 359 Karur Vysya Bank Ltd. 41 67 71 34 213 Lakshmi Vilas Bank Ltd. 40 80 60 32 212 Lord Krishna Bank Ltd. 12 46 21 14 93 Nainital Bank Ltd. 17 14 14 9 54 Nedungadi Bank Ltd. 8 92 54 21 175 Ratnakar Bank Ltd. 22 22 16 10 70 Sangli Bank Ltd. 51 45 46 39 181 SBI Commercial & International Bank— — — 2 2 Ltd. South Indian Bank Ltd. 72 198 62 46 378 Tamilnad Mercantile Bank Ltd. 46 55 41 22 164 United Western Bank Ltd. 49 61 54 62 226 UTI Bank Ltd. — 25 31 55 111 Vysya Bank Ltd. 110 88 104 75 377

NON-SCHEDULED COMMERCIAL3 7 6 — 16 BANKS Coastal Local Area Bank Ltd. — 5 3 — 8 Krishna Bhima Samruddhi Local Area— 1 2 — 3 Bank Ltd. South Gujarat Local Area Bank Ltd. 3 1 1 — 5 ALL-COMMERCIAL BANKS 32471 14716 10437 8571 66195

STATE AND DISTRICT WISE – BRANCH STATISTICS

Table No. 11 : District and Population Group-Wise Number of Branches of Commercial Banks Functioning in Each State – March 2012

POPULATION GROUP STATE / UNION TERRITORY RURAL SEMI- URBAN METRO- TOTAL DISTRICT NAME URBAN POLITAN BRANCHE S 1 2 3 4 5 6 ANDAMAN & NICOBAR ISLANDS17 14 — — 31 Andaman 15 13 — — 28 Nicobar 2 1 — — 3

ANDHRA PRADESH 2433 1233 1014 527 5207 Adilabad 105 40 — — 145 Anantapur 116 55 42 — 213 Chittoor 128 63 63 — 254 Cuddapah 89 41 36 — 166 East Godavari 129 101 101 — 331 Guntur 147 90 95 — 332 Hyderabad 2 2 9 527 540 Karimnagar 105 48 24 — 177 Khammam 96 37 20 — 153 Krishna 133 61 148 — 342 Kurnool 89 53 65 — 207 Mahbubnagar 124 56 17 — 197 Medak 120 42 — — 162 Nalgonda 119 63 — — 182 Nellore 106 52 42 — 200 Nizamabad 103 31 29 — 163 Prakasam 133 65 24 — 222 Rangareddy 92 58 51 — 201 Srikakulam 87 51 — — 138 Vishakhapatnam 92 66 126 — 284 Vizianagaram 82 26 25 — 133 Warangal 109 26 53 — 188 West Godavari 127 106 44 — 277

ARUNACHAL PRADESH 56 12 — — 68 Chunglang 4 — — — 4 Dibang Valley 2 — — — 2 East Kameng 2 — — — 2 East Siang 7 3 — — 10 Lohit 5 1 — — 6 Lower Subansiri 6 — — — 6 Papumpare 6 5 — — 11 Tawang 3 — — — 3 Tirap 4 — — — 4 Upper Siang 2 — — — 2 Upper Subansiri 2 1 — — 3 West Kameng 6 1 — — 7 West Siang 7 1 — — 8

ASSAM 799 256 159 — 1214 Barpeta 44 15 — — 59 Bongaigaon 22 16 — — 38 Cachar 45 1 23 — 69 Darrang 34 15 — — 49 Dhemaji 17 — — — 17 Dhubri 23 15 — — 38 Dibrugarh 38 12 18 — 68 Goalpara 29 6 — — 35 Golaghat 37 9 — — 46 Hailakandi 15 5 — — 20 Jorhat 32 2 25 — 59 Kakrojhar 16 9 — — 25 Kamrup 62 13 93 — 168 Karbi Anglong 48 5 — — 53 Karimganj 31 14 — — 45 Lakhimpur 40 6 — — 46 Morigaon 21 7 — — 28 Nagaon 63 24 — — 87 Nalbari 41 5 — — 46 North Cachar Hills 9 7 — — 16 Sibsagar 42 13 — — 55 Sonitpur 53 25 — — 78 Tinsukia 37 32 — — 69

BIHAR 2496 660 390 — 3546 Araria 47 22 — — 69 Arwal 25 1 — — 26 Aurangabad 70 13 — — 83 Banka 51 6 — — 57 Begusarai 60 43 — — 103 Bhagalpur 71 14 32 — 117 Bhojpur 74 13 15 — 102 Buxar 51 17 — — 68 Darbhanga 105 12 25 — 142 Gaya 117 13 35 — 165 Gopalganj 73 17 — — 90 Jamui 42 12 — — 54 Jehanabad 29 8 — — 37 Kaimur 52 8 2 — 62 Katihar 72 5 14 — 91 Khagaria 28 18 — — 46 Kishanganj 35 13 — — 48 Lakhisarai 21 13 — — 34 Madhepura 36 20 — — 56 Madhubani 104 40 — — 144 Munger 32 12 14 — 58 Muzaffarpur 119 15 46 — 180 Nalanda 83 12 12 — 107 Nawada 57 13 — — 70 Paschimi Champaran 92 29 — — 121 Patna 119 32 162 — 313 Purbi Champaran 121 36 — — 157 Purnia 54 11 17 — 82 Rohtas 77 28 — — 105 Saharsa 40 16 — — 56 Samastipur 111 33 — — 144 Saran 109 10 16 — 135 Sheikhpura 12 10 — — 22 Sheohar 12 4 — — 16 Sitamarhi 61 33 — — 94 Siwan 99 21 — — 120 Supaul 55 12 — — 67 Vaishali 80 25 — — 105

CHANDIGARH 9 10 155 — 174

CHHATTISGARH 704 158 174 — 1036 Bastar 44 16 — — 60 Bilaspur 58 8 26 — 92 Dantewada 33 3 — — 36 Dhamtari 21 9 — — 30 Durg 79 17 60 — 156 Janjgir-Champa 43 12 — — 55 Jashpur 33 4 — — 37 Kanker 21 3 — — 24 Kawardha 15 5 — — 20 Korba 29 4 19 — 52 Koriya 24 16 — — 40 Mahasamund 31 11 — — 42 Raigarh 48 16 — — 64 Raipur 84 17 55 — 156 Rajnandgaon 48 8 14 — 70 Surguja 93 9 — — 102

DADRA & NAGAR HAVELI 5 6 — — 11

DAMAN & DIU 1 15 — — 16 Daman — 11 — — 11 Diu 1 4 — — 5

DELHI 59 21 — 1390 1470

GOA 155 172 — — 327 North Goa 98 96 — — 194 South Goa 57 76 — — 133

GUJARAT 1547 821 460 821 3649 Ahmadabad 58 46 — 470 574 Amreli 55 36 — — 91 Anand 69 66 28 — 163 Banas Kantha 70 30 — — 100 Bharuch 75 23 23 — 121 Bhavnagar 66 33 53 — 152 Dahod 40 22 — — 62 Dangs 6 3 — — 9 Gandhinagar 42 18 30 — 90 Jamnagar 73 29 50 — 152 Junagadh 70 43 35 — 148 Kachchh 86 46 38 — 170 Kheda 73 38 30 — 141 Mahesana 55 46 — — 101 Narmada 19 6 — — 25 Navsari 85 21 36 — 142 Panch Mahals 58 29 — — 87 Patan 41 36 — — 77 Porbandar 15 7 26 — 48 Rajkot 88 60 98 — 246 Sabar Kantha 82 38 — — 120 Surat 112 31 — 161 304 Surendranagar 48 30 13 — 91 Vadodara 120 25 — 190 335 Valsad 41 59 — — 100

HARYANA 701 401 444 — 1546 Ambala 29 43 30 — 102 Bhiwani 62 15 20 — 97 Faridabad 49 22 74 — 145 Fatehabad 23 23 — — 46 Gurgaon 64 17 63 — 144 Hisar 44 12 41 — 97 Jhajjar 29 22 — — 51 Jind 36 23 — — 59 Kaithal 26 31 — — 57 Karnal 32 20 45 — 97 Kurukshetra 27 29 — — 56 Mahendragarh 36 12 — — 48 Panchkula 20 41 — — 61 Panipat 25 10 45 — 80 Rewari 40 18 — — 58 Rohtak 36 9 48 — 93 Sirsa 47 21 23 — 91 Sonipat 40 12 26 — 78 Yamunanagar 36 21 29 — 86

HIMACHAL PRADESH 657 125 — — 782 Bilaspur 36 7 — — 43 Chamba 49 4 — — 53 Hamirpur 48 8 — — 56 Kangra 142 10 — — 152 Kinnaur 18 — — — 18 Kulu 39 10 — — 49 Lahul & Spiti 8 — — — 8 Mandi 78 21 — — 99 Simla 89 35 — — 124 Sirmaur 37 12 — — 49 Solan 69 9 — — 78 Una 44 9 — — 53

JAMMU & KASHMIR 580 79 169 — 828 Anantnag 55 13 — — 68 Badgam 38 4 — — 42 Baramulla 87 19 — — 106 Doda 40 — — — 40 Jammu 79 11 78 — 168 Kargil 9 — — — 9 Kathua 43 8 — — 51 Kupwara 38 1 — — 39 Ladakh 15 — — — 15 Poonch 15 5 — — 20 Pulwama 39 5 — — 44 Rajouri 38 — — — 38 Srinagar 38 1 91 — 130 Udhampur 46 12 — — 58

JHARKHAND 981 262 213 — 1456 Bokaro 50 33 25 — 108 Chatra 30 3 — — 33 Deoghar 49 17 — — 66 Dhanbad 46 29 35 — 110 Dumka 60 9 — — 69 Garhwa 33 5 — — 38 Giridih 84 12 — — 96 Godda 52 6 — — 58 Gumla 58 9 — — 67 Hazaribag 65 40 — — 105 Jamtara 25 6 — — 31 Koderma 19 6 — — 25 Latehar 18 4 — — 22 Lohardagga 12 5 — — 17 Pakur 33 3 — — 36 Palamau 64 15 — — 79 Paschimi Singhbhum 97 25 — — 122 Purbi Singhbhum 60 14 71 — 145 Ranchi 85 14 82 — 181 Sahebganj 41 7 — — 48 KARNATAKA 2192 1032 786 758 4768 Bagalkote 67 56 — — 123 Bangalore Rural 65 43 — — 108 Bangalore Urban 50 38 — 758 846 Belgaum 128 114 79 — 321 Bellary 83 43 31 — 157 Bidar 67 12 16 — 95 Bijapur 73 23 26 — 122 Chamarajanagar 36 19 — — 55 Chikmagalur 109 26 — — 135 Chitradurga 83 32 — — 115 Dakshin Kannad 115 41 150 — 306 Davangere 68 23 34 — 125 Dharwad 54 17 122 — 193 Gadag 37 25 16 — 78 Gulbarga 102 36 39 — 177 Hassan 114 53 — — 167 Haveri 59 36 — — 95 Kodagu 89 22 — — 111 Kolar 128 55 — — 183 Koppal 45 30 — — 75 Mandya 92 18 19 — 129 Mysore 85 31 130 — 246 Raichur 40 33 23 — 96 Shimoga 79 42 36 — 157 Tumkur 111 37 35 — 183 Udipi 126 48 30 — 204 Uttar Kannad 87 79 — — 166

KERALA 351 2370 620 — 3341 Alapuzha 17 166 35 — 218 Ernakulam 27 243 217 — 487 Idukki 23 75 — — 98 Kannur 30 166 18 — 214 Kasaragod 24 102 — — 126 Kollam 13 132 43 — 188 Kottayam 26 246 — — 272 Kozhikode 15 144 99 — 258 Malappuram 21 192 — — 213 Palakkad 37 177 43 — 257 Pathanamthitta 3 223 — — 226 Thiruvananthapuram 15 164 165 — 344 Thrissur 86 282 — — 368 Wayanad 14 58 — — 72

LAKSHADWEEP 9 — — — 9 MADHYA PRADESH 1919 777 416 334 3446 Balaghat 61 19 — — 80 Barwani 30 17 — — 47 Betul 47 19 — — 66 Bhind 27 16 10 — 53 Bhopal 26 3 — 155 184 Chhatarpur 43 30 — — 73 Chhindwara 70 34 — — 104 Damoh 40 16 — — 56 Datia 26 13 — — 39 Dewas 54 11 16 — 81 Dhar 76 34 — — 110 Dindori 23 3 — — 26 East Nimar 65 7 31 — 103 Guna 52 17 13 — 82 Gwalior 37 12 73 — 122 Harda 13 13 — — 26 Hoshangabad 36 37 — — 73 Indore 42 17 — 179 238 Jabalpur 46 15 87 — 148 Jhabua 45 12 — — 57 Katni 42 3 15 — 60 Mandla 36 12 — — 48 Mandsaur 30 31 — — 61 Morena 24 25 12 — 61 Narsimhapur 39 22 — — 61 Neemuch 23 21 — — 44 Panna 30 10 — — 40 Raisen 44 22 — — 66 Rajgarh 57 18 — — 75 Ratlam 33 14 29 — 76 Rewa 72 7 23 — 102 Sagar 45 29 30 — 104 Satna 74 14 21 — 109 Sehore 39 21 — — 60 Seoni 54 13 — — 67 Shahdol 52 21 — — 73 Shajapur 47 22 — — 69 Sheopur 11 7 — — 18 Shivpuri 40 7 11 — 58 Sidhi 64 16 — — 80 Tikamgarh 44 15 — — 59 Ujjain 53 21 45 — 119 Umaria 18 14 — — 32 Vidisha 38 26 — — 64 West Nimar 51 21 — — 72

MAHARASHTRA 2299 1092 900 2025 6316 Ahmadnagar 116 61 29 — 206 Akola 48 22 32 — 102 Amravati 82 34 33 — 149 Aurangabad 71 15 73 — 159 Bhandara 50 22 — — 72 Bid 70 22 6 — 98 Buldhana 60 43 — — 103 Chandrapur 91 34 24 — 149 Dhule 43 14 22 — 79 Gadchiroli 36 8 — — 44 Gondia 43 3 12 — 58 Greater Bombay — — — 1459 1459 Hingoli 27 11 — — 38 Jalgaon 87 55 41 — 183 Jalna 48 10 17 — 75 Kolhapur 101 42 87 — 230 Latur 53 26 19 — 98 Nagpur 85 27 — 166 278 Nanded 67 33 30 — 130 Nandurbar 36 14 — — 50 Nasik 102 44 87 — 233 Osmanabad 42 29 — — 71 Parbhani 39 20 13 — 72 Pune 123 90 39 325 577 Raigad 97 52 — — 149 Ratnagiri 99 34 — — 133 Sangli 76 54 55 — 185 Satara 90 62 — — 152 Sindhudurg 58 22 — — 80 Solapur 106 63 55 — 224 Thane 102 60 199 75 436 Wardha 44 17 12 — 73 Washim 39 15 — — 54 Yavatmal 68 34 15 — 117

MANIPUR 41 14 22 — 77 Bishenpur 4 1 — — 5 Chandel 5 — — — 5 Churachandpur 1 3 — — 4 Imphal 8 4 22 — 34 Senapati 11 1 — — 12 Tamenglong 5 — — — 5 Thoubal 4 4 — — 8 Ukhrul 3 1 — — 4

MEGHALAYA 130 16 33 — 179 East Garo Hills 14 1 — — 15 East Khasi Hills 37 5 33 — 75 Jaintia Hills 19 3 — — 22 Ri Bhoi 14 — — — 14 South Garo Hills 3 — — — 3 West Garo Hills 25 5 — — 30 West Khasi Hills 18 2 — — 20

MIZORAM 61 9 8 — 78 Aizawl 17 — 8 — 25 Champhai 7 1 — — 8 Kolasib 7 2 — — 9 Lawngtlai 2 — — — 2 Lunglei 9 3 — — 12 Mamit 10 — — — 10 Saiha 3 1 — — 4 Serchhip 6 2 — — 8

NAGALAND 37 33 — — 70 Dimapur 4 12 — — 16 Kohima 6 10 — — 16 Mokokchung 5 4 — — 9 Mon 2 1 — — 3 Phek 6 — — — 6 Tuensang 5 2 — — 7 Wokha 4 3 — — 7 Zunheboto 5 1 — — 6

ORISSA 1610 316 300 — 2226 Angul 54 18 — — 72 Balangir 55 14 — — 69 Baleshwar 90 26 — — 116 Bargarh 57 15 — — 72 Bhadrak 53 8 — — 61 Boudh 19 3 — — 22 Cuttack 98 6 68 — 172 Deogarh 16 4 — — 20 Dhenkanal 45 17 — — 62 Gajapati 28 5 — — 33 Ganjam 128 30 33 — 191 Jagatsinghpur 52 20 — — 72 Jajpur 73 9 — — 82 Jharsuguda 20 13 — — 33 Kalahandi 67 12 — — 79 Kandhamal 32 4 — — 36 Kendrapara 64 4 — — 68 Keonjhar 70 17 — — 87 Khurda 67 10 108 — 185 Koraput 42 18 — — 60 Malkangiri 17 2 — — 19 Mayurbhanj 117 17 — — 134 Nawapara 25 3 — — 28 Nawrangpur 25 4 — — 29 Nayagarh 52 — — — 52 Puri 71 7 23 — 101 Rayagada 39 8 — — 47 Sambalpur 48 5 25 — 78 Sonepur 23 4 — — 27 Sundargarh 63 13 43 — 119

PONDICHERRY 20 19 43 — 82 Karaikal 6 11 — — 17 Mahe — 5 — — 5 Pondicherry 14 1 43 — 58 Yanam — 2 — — 2

PUNJAB 1118 694 548 206 2566 Amritsar 147 29 153 — 329 Bathinda 46 25 40 — 111 Faridkot 16 32 — — 48 Fatehgarh Sahib 24 26 — — 50 Ferozpur 66 50 16 — 132 Gurdaspur 96 29 42 — 167 Hoshiarpur 89 31 32 — 152 Jalandhar 108 68 153 — 329 Kapurthala 49 66 — — 115 Ludhiana 100 48 — 206 354 Mansa 24 20 — — 44 Moga 50 9 25 — 84 Muktsar 34 27 — — 61 Nawanshahr 44 37 — — 81 Patiala 77 48 87 — 212 Rupnagar 60 78 — — 138 Sangrur 88 71 — — 159

RAJASTHAN 1874 739 472 229 3314 Ajmer 62 32 62 — 156 Alwar 111 24 29 — 164 Banswara 74 12 — — 86 Baran 37 21 — — 58 Barmer 54 19 — — 73 Bharatpur 63 22 26 — 111 Bhilwara 72 21 29 — 122 Bikaner 69 12 51 — 132 Bundi 44 17 — — 61 Chittaurgarh 79 33 — — 112 Churu 70 45 — — 115 Dausa 43 16 — — 59 Dholpur 22 15 — — 37 Dungarpur 51 11 — — 62 Ganganagar 59 44 33 — 136 Hanumangarh 53 35 — — 88 Jaipur 112 37 — 229 378 Jaisalmer 30 8 — — 38 Jalor 49 12 — — 61 Jhalawar 41 23 — — 64 Jhunjhunu 46 47 — — 93 Jodhpur 70 14 77 — 161 Karauli 33 15 — — 48 Kota 48 15 64 — 127 Nagaur 84 44 — — 128 Pali 77 22 15 — 114 Rajsamand 41 18 — — 59 Sawai Madhopur 43 26 — — 69 Sikar 64 32 16 — 112 Sirohi 34 25 — — 59 Tonk 48 13 8 — 69 Udaipur 91 9 62 — 162

SIKKIM 36 12 — — 48 East Sikkim 13 12 — — 25 North Sikkim 6 — — — 6 South Sikkim 9 — — — 9 West Sikkim 8 — — — 8

TAMIL NADU 1779 1215 969 770 4733 Ariyalur 29 8 — — 37 Chennai — — — 770 770 Coimbatore 93 89 230 — 412 Cuddalore 75 39 36 — 150 Dharmapuri 97 56 — — 153 Dindigul 73 38 28 — 139 Erode 90 70 46 — 206 Kancheepuram 64 30 64 — 158 Kanyakumari 29 65 35 — 129 Karur 36 40 — — 76 Madurai 63 24 115 — 202 Nagapattinam 55 41 — — 96 Namakkal 53 48 — — 101 Nilgiris 16 57 — — 73 Perambalur 23 5 — — 28 Pudukkottai 66 22 — — 88 Ramanathapuram 43 32 — — 75 Salem 62 34 68 — 164 Sivaganga 64 47 — — 111 Thanjavur 67 33 65 — 165 Theni 22 52 — — 74 Thiruvallur 67 41 34 — 142 Thiruvarur 44 28 — — 72 Tiruchirapalli 69 31 94 — 194 Tirunelvali 89 65 50 — 204 Tiruvannamalai 65 27 10 — 102 Toothukudi 60 37 40 — 137 Vellore 102 63 36 — 201 Villupuram 112 39 — — 151 Virudhunagar 51 54 18 — 123

TRIPURA 120 29 29 — 178 Dhalai 16 — — — 16 North Tripura 23 9 — — 32 South Tripura 39 6 — — 45 West Tripura 42 14 29 — 85

UTTAR PRADESH 4875 1345 1397 520 8137 Agra 69 27 126 — 222 Aligarh 77 20 57 — 154 Allahabad 116 16 115 — 247 Ambedkar Nagar 60 14 — — 74 Auraiya 36 15 — — 51 Azamgarh 159 22 — — 181 Baghpat 26 22 — — 48 Bahraich 79 9 12 — 100 Ballia 105 35 — — 140 Balrampur 56 14 — — 70 Banda 67 16 — — 83 Bara Banki 108 24 — — 132 Bareilly 85 24 76 — 185 Basti 76 12 — — 88 Bijnor 71 64 — — 135 Budaun 79 31 14 — 124 Bulandshahr 75 43 22 — 140 Chandauli 42 15 — — 57 Chitrakoot 34 5 — — 39 Deoria 80 25 — — 105 Etah 73 41 — — 114 Etawah 44 7 13 — 64 Faizabad 52 9 25 — 86 Farrukhabad 43 11 21 — 75 Fatehpur 86 13 7 — 106 Firozabad 42 22 20 — 84 Gautam Buddha Nagar 28 9 52 — 89 Ghaziabad 65 19 136 — 220 Ghazipur 105 42 — — 147 Gonda 95 18 — — 113 Gorakhpur 114 9 55 — 178 Hamirpur 40 16 — — 56 Hardoi 98 30 — — 128 Hathras 34 16 20 — 70 Jalaun 55 27 — — 82 Jaunpur 143 15 18 — 176 Jhansi 32 26 41 — 99 Jyotiba Phule Nagar 39 14 11 — 64 Kanauj 40 21 — — 61 Kanpur Dehat 99 22 — — 121 Kanpur Nagar 24 5 — 287 316 Kaushambi 43 5 — — 48 Kheri 92 36 — — 128 Kushi Nagar 90 6 — — 96 Lalitpur 33 11 — — 44 Lucknow 62 4 — 233 299 Maharajganj 69 10 — — 79 Mahoba 20 14 — — 34 Mainpuri 46 27 — — 73 Mathura 66 26 39 — 131 Mau 56 12 9 — 77 Meerut 66 29 97 — 192 Mirzapur 65 9 22 — 96 Moradabad 89 33 72 — 194 Muzaffarnagar 91 52 41 — 184 Pilibhit 52 14 14 — 80 Pratapgarh 114 16 — — 130 Rai Bareli 108 12 11 — 131 Rampur 61 19 18 — 98 Saharanpur 72 23 50 — 145 Sant Kabir Nagar 45 9 — — 54 Sant Ravidas Nagar 31 24 — — 55 Shahjahanpur 88 17 20 — 125 Shravasti 50 3 — — 53 Sidharthanagar 77 5 — — 82 Sitapur 120 23 18 — 161 Sonbhadra 44 22 — — 66 Sultanpur 126 16 — — 142 Unnao 86 16 12 — 114 Varanasi 62 7 133 — 202

UTTARANCHAL 527 195 122 — 844 Almora 57 13 — — 70 Bageshwar 27 — — — 27 Chamoli 28 8 — — 36 Champawat 18 2 — — 20 Dehra Dun 49 35 77 — 161 Garhwal 83 15 — — 98 Haridwar 36 35 24 — 95 Nainital 44 21 21 — 86 Pithoragarh 45 5 — — 50 Rudraprayag 20 — — — 20 Tehri Garhwal 60 8 — — 68 Udham Singh Nagar 38 49 — — 87 Uttar Kashi 22 4 — — 26

WEST BENGAL 2273 564 594 991 4422 Bankura 143 11 12 — 166 Barddhaman 213 53 104 — 370 Birbhum 135 39 — — 174 Dakshin Dinajpur 52 3 8 — 63 Darjiling 43 26 41 — 110 Haora 101 26 95 — 222 Hugli 152 49 52 — 253 Jalpaiguri 84 51 1 — 136 Koch Bihar 79 30 — — 109 Kolkata — — — 991 991 Maldah 120 16 8 — 144 Medinipur 395 35 50 — 480 Murshidabad 148 55 15 — 218 Nadia 117 40 23 — 180 North 24 Parganas 159 53 164 — 376 Puruliya 90 22 — — 112 South 24 Parganas 182 41 12 — 235 Uttar Dinajpur 60 14 9 — 83 ALL-INDIA 32471 14716 10437 8571 66195

Chapter - II Research Methodology

OBJECTIVE OF THE STUDY: The main purpose of the study of project into the various aspects of financial management of co-operative bank with a particular emphasis on credit management further, trend in credit management examined six years period.

METHODOLOGY This study adopts the methodology of collecting data from both sources primary and secondary. The primary sources of data for the study are collected through personal interview with concerned finance executives. The secondary sources of data for the study are annual reports and other records furnished by co-operative bank. TIME SPAN: The time span of the study is for a period of 6 years 2010-2006.

LIMITATIONS OF THE STUDY: The study has the following limitation.  The amounts used in the reports are taken from the annual reports, published at the end of the respective years. The result does not reflect the day to day transactions. It is also impossible to study the day-to-day transactions particularly in cash management. Chapter – III

Company Profile

ICICI Bank is India's second-largest bank with total assets of about Rs. 2,513.89 bn (US$ 56.3 bn) at March 31, 2012 and profit after tax of Rs. 25.40 bn (US$ 569 mn) for the year ended March 31, 2013 (Rs. 20.05 bn (US$ 449 mn) for the year ended March 31, 2014). ICICI Bank has a network of 741 branches (including 48 extension counters) and over 3300 ATMs in India and presence in 30

International locations. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2012 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong

Kong, Sri Lanka and Dubai International Finance Centre and representative offices in the United States, United Arab Emirates, China, South Africa and

Bangladesh. Our UK subsidiary has established a branch in Belgium. ICICI Bank is the most valuable bank in India in terms of market capitalization.

ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary

Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI

Bank was reduced to 46% through a public offering of shares in India in fiscal

2008, an equity offering in the form of ADRs listed on the NYSE in fiscal 2010,

ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2011, and secondary market sales by ICICI to institutional investors in fiscal 2011 and fiscal 2012. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s,

ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 2009, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the

ICICI group's universal banking strategy. The merger would enhance value for

ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2011, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI

Personal Financial Services Limited and ICICI Capital Services Limited, with

ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2012, by the High Court of Gujarat at Ahmedabad in March 2012, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April

2012. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

*Free float holding excludes all promoter holdings, strategic investments and cross holdings among public sector entities.

Case study 1 : purpose two willerslone amount 80000 interest 23% down payment 30000 period30months 30 PRINCIPLE= AMOUNT-DOWN PAYMENT r/m = 0.019166667 50000.00

EMI =P/PVIF PVIF = 22.66 PVIF = 1-1/(1+r/m)^mn/r/m EMI = 2207.00 MONTH EMI INTREST PRINCIPEL BALANCE 0 50000.00 50000.00 1 2207.00 958.33 1248.66 48751.34 2 2207.00 934.40 1272.60 47478.74 3 2207.00 910.01 1296.99 46181.75 4 2207.00 885.15 1321.85 44859.91 5 2207.00 859.81 1347.18 43512.73 6 2207.00 833.99 1373.00 42139.72 7 2207.00 807.68 1399.32 40740.40 8 2207.00 780.86 1426.14 39314.27 9 2207.00 753.52 1453.47 37860.79 10 2207.00 725.67 1481.33 36379.46 11 2207.00 697.27 1509.72 34869.74 12 2207.00 668.34 1538.66 33331.08 13 2207.00 638.85 1568.15 31762.93 14 2207.00 608.79 1598.21 30164.72 15 2207.00 578.16 1628.84 28535.88 16 2207.00 546.94 1660.06 26875.82 17 2207.00 515.12 1691.88 25183.94 18 2207.00 482.69 1724.30 23459.64 19 2207.00 449.64 1757.35 21702.29 20 2207.00 415.96 1791.04 19911.25 21 2207.00 381.63 1825.36 18085.89 22 2207.00 346.65 1860.35 16225.54 23 2207.00 310.99 1896.01 14329.53 24 2207.00 274.65 1932.35 12397.18 25 2207.00 237.61 1969.38 10427.80 26 2207.00 199.87 2007.13 8420.67 27 2207.00 161.40 2045.60 6375.07 28 2207.00 122.19 2084.81 4290.26 29 2207.00 82.23 2124.77 2165.49 30 2207.00 41.51 2165.49 0.00

Case study 2: Purpose : Two wheeler loan amount :90000 intrest: 18% down payment:60000 period30months 30 PRINCIPLE= AMOUNT-DOWN PAYMENT r/m = 0.015 90000-60000=30000

EMI =P/PVIF PVIF = 24.02 PVIF = 1-1/(1+r/m)^mn/r/m

EMI = 1249.18

MONTH EMI INTREST PRINCIPEL BALANCE 0 30000.00 30000.00 1 1249.18 450.00 799.18 29200.82 2 1249.18 438.01 811.16 28389.66 3 1249.18 425.84 823.33 27566.33 4 1249.18 413.49 835.68 26730.65 5 1249.18 400.96 848.22 25882.43 6 1249.18 388.24 860.94 25021.49 7 1249.18 375.32 873.85 24147.64 8 1249.18 362.21 886.96 23260.68 9 1249.18 348.91 900.27 22360.41 10 1249.18 335.41 913.77 21446.65 11 1249.18 321.70 927.48 20519.17 12 1249.18 307.79 941.39 19577.78 13 1249.18 293.67 955.51 18622.27 14 1249.18 279.33 969.84 17652.43 15 1249.18 264.79 984.39 16668.04 16 1249.18 250.02 999.16 15668.89 17 1249.18 235.03 1014.14 14654.74 18 1249.18 219.82 1029.35 13625.39 19 1249.18 204.38 1044.79 12580.60 20 1249.18 188.71 1060.47 11520.13 21 1249.18 172.80 1076.37 10443.75 22 1249.18 156.66 1092.52 9351.24 23 1249.18 140.27 1108.91 8242.33 24 1249.18 123.63 1125.54 7116.79 25 1249.18 106.75 1142.42 5974.36 26 1249.18 89.62 1159.56 4814.80 27 1249.18 72.22 1176.95 3637.85 28 1249.18 54.57 1194.61 2443.24 29 1249.18 36.65 1212.53 1230.71 30 1249.18 18.46 1230.71 0.00 Case study :3 purpose Education(M B A) amonut 100000 intrest 9% period30months 30 r/m 0.01

Ofter two years Principel Amount Amount 100000 First year intrest 9000 Secound year 9810 Total = 118810

pvif 26.78

emi 4437.33

Month Emi Intrest Principle Balance 0 118810.00 118810 1 4437.33 891.08 3546.26 115263.74 2 4437.33 864.48 3572.86 111690.88 3 4437.33 837.68 3599.65 108091.23 4 4437.33 810.68 3626.65 104464.58 5 4437.33 783.48 3653.85 100810.73 6 4437.33 756.08 3681.25 97129.47 7 4437.33 728.47 3708.86 93420.61 8 4437.33 700.65 3736.68 89683.93 9 4437.33 672.63 3764.71 85919.22 10 4437.33 644.39 3792.94 82126.28 11 4437.33 615.95 3821.39 78304.90 12 4437.33 587.29 3850.05 74454.85 13 4437.33 558.41 3878.92 70575.92 14 4437.33 529.32 3908.02 66667.91 15 4437.33 500.01 3937.33 62730.58 16 4437.33 470.48 3966.86 58763.73 17 4437.33 440.73 3996.61 54767.12 18 4437.33 410.75 4026.58 50740.54 19 4437.33 380.55 4056.78 46683.76 20 4437.33 350.13 4087.21 42596.55 21 4437.33 319.47 4117.86 38478.69 22 4437.33 288.59 4148.74 34329.94 23 4437.33 257.47 4179.86 30150.08 24 4437.33 226.13 4211.21 25938.87 25 4437.33 194.54 4242.79 21696.08 26 4437.33 162.72 4274.61 17421.47 27 4437.33 130.66 4306.67 13114.79 28 4437.33 98.36 4338.97 8775.82 29 4437.33 65.82 4371.52 4404.30 30 4437.33 33.03 4404.30 0.00 Case study 4:

PURPOSE :FURNITURE SALES AMOUNT :120100 INTREST : 25% PERIOD :30 MONTHS EMI = Principle/PVIF

PVIF = 1-1/(1+r/m)^mn/r/m

R/M = Interest %/12 Amount 120100.000 Interest 0.250 Period30 r/m = 0.021 PVIF = 22.14

EMI = 5419.58

MONTH EMI INTREST PRINCIPEL BALANCE 0 120100.00 1 5419.580 2500.00 2919.58 117080.42 2 5419.580 2439.18 2980.40 114100.02 3 5419.580 2377.08 3042.50 111057.52 4 5419.580 2313.70 3105.88 107951.64 5 5419.580 2248.99 3170.59 104781.05 6 5419.580 2182.94 3236.64 101544.41 7 5419.580 2115.51 3304.07 98240.34 8 5419.580 2046.67 3372.91 94867.43 9 5419.580 1976.40 3443.17 91424.26 10 5419.580 1904.67 3514.91 87909.35 11 5419.580 1831.44 3588.13 84321.22 12 5419.580 1756.69 3662.89 80658.33 13 5419.580 1680.38 3739.20 76919.13 14 5419.580 1602.48 3817.10 73102.03 15 5419.580 1522.96 3896.62 69205.41 16 5419.580 1441.78 3977.80 65227.61 17 5419.580 1358.91 4060.67 61166.94 18 5419.580 1274.31 4145.27 57021.67 19 5419.580 1187.95 4231.63 52790.05 20 5419.580 1099.79 4319.79 48470.26 21 5419.580 1009.80 4409.78 44060.48 22 5419.580 917.93 4501.65 39558.82 23 5419.580 824.14 4595.44 34963.39 24 5419.580 728.40 4691.18 30272.21 25 5419.580 630.67 4788.91 25483.30 26 5419.580 530.90 4888.68 20594.62 27 5419.580 429.05 4990.52 15604.10 28 5419.580 325.09 5094.49 10509.61 29 5419.580 218.95 5200.63 5308.98 30 5419.580 110.60 5308.98 0.00

Case study 5 PURPOSE :SALE THE T. V. &DVD AMOUNT :20100 INTREST : 16% PERIOD :36 MONTHS EMI = Principel/PVIF

PVIF = 1-1/(1+r/m)^mn/r/m

R/M = Intrest %/12 Amount 20100.000 Intrest 0.160 Period36.000 r/m = 0.013 PVIF = 28.44

EMI = 703.14

MONTH EMI INTREST PRINCIPEL BALANCE 0 20100.00 1 703.141 266.67 436.47 19563.53 2 703.141 260.85 442.29 19121.23 3 703.141 254.95 448.19 18673.04 4 703.141 248.97 454.17 18218.87 5 703.141 242.92 460.22 17758.65 6 703.141 236.78 466.36 17292.29 7 703.141 230.56 472.58 16819.72 8 703.141 224.26 478.88 16340.84 9 703.141 217.88 485.26 15855.58 10 703.141 211.41 491.73 15363.84 11 703.141 204.85 498.29 14865.55 12 703.141 198.21 504.93 14360.62 13 703.141 191.47 511.67 13848.96 14 703.141 184.65 518.49 13330.47 15 703.141 177.74 525.40 12805.07 16 703.141 170.73 532.41 12272.66 17 703.141 163.64 539.51 11733.15 18 703.141 156.44 546.70 11186.46 19 703.141 149.15 553.99 10632.47 20 703.141 141.77 561.37 10071.09 21 703.141 134.28 568.86 9502.23 22 703.141 126.70 576.44 8925.79 23 703.141 119.01 584.13 8341.66 24 703.141 111.22 591.92 7749.74 25 703.141 103.33 599.81 7149.93 26 703.141 95.33 607.81 6542.12 27 703.141 87.23 615.91 5926.21 28 703.141 79.02 624.12 5302.09 29 703.141 70.69 632.45 4669.64 30 703.141 62.26 640.88 4028.76 31 703.141 53.72 649.42 3379.34 32 703.141 45.06 658.08 2721.25 33 703.141 36.28 666.86 2054.40 34 703.141 27.39 675.75 1378.65 35 703.141 18.38 684.76 693.89 36 703.141 9.25 693.89 0.00

Case study 6: PURPOSE :DAUGHTER MARAGE AMOUNT :60000 INTREST :18% NOMBER OF MONTHS :24

AMOUNT 60000.00 INTREST 0.18 NO.MONTHS 24.00

R/M 0.02 EMI=principle/PVIF PVIF=1-(1/1+r/m)^mn

PVIF 20.03

EMI 2995.45

MONTH EMI INTEREST PRINCIPLE BALANCE 0.00 0.00 60000.00 60000.00 1.00 2995.45 900.00 2095.45 57904.55 2.00 2995.45 868.57 2126.88 55777.68 3.00 2995.45 836.67 2158.78 53618.90 4.00 2995.45 804.28 2191.16 51427.73 5.00 2995.45 771.42 2224.03 49203.70 6.00 2995.45 738.06 2257.39 46946.31 7.00 2995.45 704.19 2291.25 44655.06 8.00 2995.45 669.83 2325.62 42329.44 9.00 2995.45 634.94 2360.50 39968.94 10.00 2995.45 599.53 2395.91 37573.02 11.00 2995.45 563.60 2431.85 35141.17 12.00 2995.45 527.12 2468.33 32672.84 13.00 2995.45 490.09 2505.35 30167.49 14.00 2995.45 452.51 2542.93 27624.56 15.00 2995.45 414.37 2581.08 25043.48 16.00 2995.45 375.65 2619.79 22423.69 17.00 2995.45 336.36 2659.09 19764.59 18.00 2995.45 296.47 2698.98 17065.62 19.00 2995.45 255.98 2739.46 14326.16 20.00 2995.45 214.89 2780.55 11545.60 21.00 2995.45 173.18 2822.26 8723.34 22.00 2995.45 130.85 2864.60 5858.74 23.00 2995.45 87.88 2907.56 2951.18 24.00 2995.45 44.27 2951.18 0.00

Case study 7: PURPOSE : PC PURCHESE AMOUNT :80000 INTREST :25% MONTHES :30

AMOUNT 80000.00 INTREST 0.25 MONTHES 30.00

R/M INTREST/12 0.02

PVIF 22.14

EMI 3613.05

MONTH EMI INTREST PRINCIPLE BALANCE 0 80000.00 1 3613.05 1666.67 1946.39 78053.61 2 3613.05 1626.12 1986.94 76066.68 3 3613.05 1584.72 2028.33 74038.35 4 3613.05 1542.47 2070.59 71967.76 5 3613.05 1499.33 2113.72 69854.03 6 3613.05 1455.29 2157.76 67696.27 7 3613.05 1410.34 2202.71 65493.56 8 3613.05 1364.45 2248.60 63244.96 9 3613.05 1317.60 2295.45 60949.51 10 3613.05 1269.78 2343.27 58606.23 11 3613.05 1220.96 2392.09 56214.14 12 3613.05 1171.13 2441.93 53772.22 13 3613.05 1120.25 2492.80 51279.42 14 3613.05 1068.32 2544.73 48734.69 15 3613.05 1015.31 2597.75 46136.94 16 3613.05 961.19 2651.87 43485.08 17 3613.05 905.94 2707.11 40777.96 18 3613.05 849.54 2763.51 38014.45 19 3613.05 791.97 2821.09 35193.36 20 3613.05 733.20 2879.86 32313.51 21 3613.05 673.20 2939.86 29373.65 22 3613.05 611.95 3001.10 26372.55 23 3613.05 549.43 3063.62 23308.92 24 3613.05 485.60 3127.45 20181.47 25 3613.05 420.45 3192.61 16988.87 26 3613.05 353.93 3259.12 13729.75 27 3613.05 286.04 3327.02 10402.73 28 3613.05 216.72 3396.33 7006.40 29 3613.05 145.97 3467.09 3539.32 30 3613.05 73.74 3539.32 0.00

TERMS OF PAYMENT Terms of payment vary widely in practice. At one end, if the seller has financial sinews it may extend liberal credit to the buyer till it converts goods bought into cash. At the other end, the buyer may pay cash in advance to the seller and finance the entire trade cycle. Cash Terms: When goods are sold on cash terms, the payment is received either before the goods are shipped (cash in advance) or when the goods are delivered (cash on delivery). Cash on delivery is often demanded by the seller if it is in a strong bargaining position and / or the customer is perceived to be risky. Open Account Credit sales are generally on open account. This means that the seller first ships the goods and then sends the invoice (bill). The credit terms (credit period, cash discount for prompt payment, the period of discount, and so on) are stated in the invoice which is acknowledged by the buyer. There is no formal acknowledgement of indebtedness by the buyer. Consignment When goods are sent on consignment, they are merely shipped but not sold to the consignee. The consignee acts as the agent of the seller (consignor). The title of the goods is retained by the seller till they are sold by the consignee to a third party.

Bill of exchange The seller does not have strong evidence of the buyer’s obligation. So, a more secure arrangement, usually in the form of a bill of exchange. When the drawee accepts a bill of exchange it becomes a trade acceptance. The bill of exchange performs three useful functions: (i) it serves as a written evidence of a definite obligation. (ii) It helps in reducing the cost of financing to some extent. (iii) It represents a negotiable instrument. Letter of Credit A letter of credit is issued by a bank on behalf of its customer (buyer) to the seller. As per this document, the bank agrees to honor drafts drawn on it for the supplies made to the customer if the seller fulfills the conditions laid down in the L/C. The L/C serves several useful functions: (i) It virtually eliminates credit risk, if the bank has a good standing. (ii) It reduces uncertainty as the seller knows the conditions that should be fulfilled to receive payment. (iii) It offers safety to the buyer who wants to ensure that payment is made only in conformity with the conditions of the L/C. CREDIT POLICY VARIABLES The important dimensions of a firm’s credit policy are:  Credit standards  Credit period  Cash discount  Collection effort

Credit Standards A pivotal question in the credit policy of a firm is: What standard should be applied in accepting or rejecting an account for credit granting. A firm has a wide range of choice in this respect. At one end of the spectrum, it may decide not to extend credit to any customer, however strong his credit rating may be. At the other end, it may decide to grant credit to all customers irrespective of their credit rating. Between these two extreme positions lie several possibilities, often the more practical ones. Credit Period The credit period refers to the length of time customers are allowed to pay for their purchases. It generally varies from 15 days to 60 days. When a firm does not extend any credit, the credit period would obviously be zero. If a firm allows 30 days, say, of credit, with no discount to induce early payments, its credit terms are stated as ‘net 30’. Lengthening of the credit period pushes sales up by inducing existing customers to purchase more and attracting additional customers. \Cash Discount Firms generally offer cash discounts to induce customers to make prompt payments. The percentage discount and the period during which it is available are reflected in the credit terms Liberalizing the cash discount policy may mean that the discount percentage is increased and / or the discount period are lengthened. Such an action tends to enhance sales (because the discount is regarded as price reduction), reduce the average collection period (as customers pay promptly), and increase the cost of discount. Collection Effort The collection programme of the firm, aimed at timely collection of receivables, may consist of the following:  Monitoring the state of receivables  Dispatch of letters to customers whose due date is approaching  Electronic and telephonic advice to customers around the due date  Threat of legal action to overdue accounts  Legal action against overdue accounts A rigorous collection programme tends to decrease sales, shorten the average collection period, reduce bad debt percentage, and increase the collection expense. CREDIT EVALUATION Proper assessment of credit risks is an important element of credit management. It helps in establishing credit limits. In assessing credit risks, two types of errors occur: Type I error a good customer is misclassified as a poor credit risk. Type II error a bad customer is misclassified as a good credit risk. Type I error leads to loss of profit on sales to good customers who are denied credit. Type II error results in bad-debt losses on credit sales made to risky customers. Three broad approaches are used for credit evaluation, viz. traditional credit analysis, numerical credit scoring, and discriminate analysis. Traditional Credit Analysis The traditional approach to credit analysis calls for assessing a prospective customer in terms of the “five C’s of credit”. 1. Character: The willingness of the customer to honor his obligations. It reflects integrity, a moral attribute that is considered very important by credit managers. 2. Capacity: The ability of the customer to meet credit obligations from the operating cash flows. 3. Capital: The financial reserves of the customer. If the customer has difficulty in meeting his credit obligations from its operating cash flow, the focus shifts to its capital. 4. Collateral: The security offered by the customer in the form of pledged assets. 5. Conditions: The general economic conditions that affect the customer. Sequential Credit Analysis If the character of a customer is found to be weak, it may be pointless to conduct the credit investigation further. Hence, sequential credit analysis is a more efficient method. In this analysis, investigation is carried further if the benefit of such analysis outweighs it cost. To illustrate, consider three stages of credit analysis: review of the past payment record, detailed internal analysis, and credit investigation by an external agency. The credit analyst proceeds from stage one to stage two only if there is no past payment history and hence a detailed internal analysis, and credit investigation by an external agency. The credit analyst proceeds from stage one to stage two only if there is no past payment history and hence a detailed internal credit analysis is warranted. Likewise, the credit analyst goes from stage two to stage three only if internal credit analysis suggests that the customer poses a medium risk and hence there is a need for external credit analysis. Numerical Credit Scoring In traditional credit analysis, customers are assigned to various risk classes somewhat judgmentally on the basis of the five C’s of credit. Credit analysts may, however, want to use a more systematic numerical credit scoring system. Such a system may involve the following steps: 1. Identify factors relevant for credit evaluation. 2. Assign weights to these factors that reflect their relative importance. 3. Rate the customer on various factors, using a suitable rating scale. 4. For each factor, multiply the factor rating with the factor weight to get the factor score. 5. Add all the factor scores to get the overall customer rating index. 6. Based on the rating index classify the customer.

Discriminate Analysis The credit index described above is somewhat ad hoc in nature and is based on weights which are subjective in nature. The technique of discriminate analysis may be employed to construct a better risk index. Risk Classification Scheme On the basis of information and analysis in the credit investigation process, customers may be classified into various risk categories.  Customers with no risk of default  Customers with negligible risk of default (default rate less than 2 percent)  Customers with little risk of default (default rate between 2 percent and 5 percent)  Customers with some risk of default (default rate between 5 percent and 10 percent).  Customers with significant risk of default (default rate in excess of 10 percent) Credit Granting Decision: If credit worthiness of a customer has been assessed and if there is no possibility of repeat order should the credit be offered or not. This situation may be represented by rev-cost when credit is to be granted, other wise refuse credit.

Repeat Order Once the customer pays for the first order, the probability that he would default on the second order is less than the probability of his defaulting on the first order. Control of Accounts Receivables Two methods have been commonly suggested for monitoring accounts receivable: day’s sales outstanding and ageing schedule. To overcome the weakness of the traditional methods, the collection matrix approach has been suggested. Collection Matrix The average collection period and the ageing schedule have traditionally been very popular measures for monitoring receivables. If sales are increasing, the average collection period and the ageing schedule will differ from what they would be if sales are constant. This holds even when the payment behaviour of customers remains unchanged. Credit Management in India Credit Policy  Very few companies have attempted a systematic articulation and formalization of their credit policy. Generally credit policies have emerged as unstated conventions.  The underlying credit philosophy is sometimes stated in terms too general to be of much relevance n guiding credit decisions. Wit the following statement made by a company. “Our credit policy seeks to maximize sales growth consistent with an acceptable degree risk”.  The practice of offering cash discount for prompt payment is not very common. Credit Analysis  Prospective customers are generally required to furnish two or three trade references. However, the follow up of these trade references is not very common.  The financial statements of the prospective customers are, in general, not analyzed in detail. Creditors often do not bother to look into mortgages.  Sometimes customers are requested to advice their bankers to provide credit information. However, the assessments provided by the banks are often couched in very general terms and are not very useful.  The larger business firms usually classify their customers into several credit categories. One large Pharmaceutical concern, for example, uses the following classification : A - Completely reliable customers B - Highly reliable customers. C - Slightly risky customers D - Doubtful customers.

Control of Receivables  Monitoring and controlling of accounts receivable if often neither very through nor systematic. Very few firms have well – defined systems for monitoring and controlling accounts receivables.  The measures commonly employed for judging whether accounts receivables are “in control” are : 1. Bad debt losses. 2. Average collection period 3. Ageing schedule

 The important dimensions of a firm’s credit policy are: credit standards, credit period, cash discount, and collection effort.  Lengthening of the credit period pushes up dales. This is, however, accompanied by a larger investment in receivables and a higher incidence of bad debt loss. Shortening of the credit period has the opposite effects.  Liberalizing the cash discount policy tends to enhance sales, reduce the average collection period, and increases the cost of discount. Tightening the cash discount policy has the opposite effects.  Three broad approaches are used for credit evaluation: traditional credit analysis, numerical credit scoring, and discriminate analysis.  The traditional approach to credit analysis calls for assessing a prospective customer in terms of the “five C’s of credit”, viz, character, capacity, capital, collateral, and conditions. Chapter - IV

Data Analysis and interpretation FINANCIAL PERFORMANCE OF THE MAHESH BANK

YEAR WISE LOANS AND ADVANCES FOR THE YEAR 2010

Rs.(in % of total Loans crores) Advances Priority Sectors 1. Small Scale Industries 33.36 18.20 8.20 2. Professional, self- employees,Artisans Craftmans & Transport Operators 8.50 4.64

3. Education 5.84 3.19

4. Wholesale & Retail Trade 36.26 17.79

5. Construction/Housing /Repairs of Building 26.80 14.62

6. Consumption Loans - -

7. Loans to IT/Software - - industry

8. Agriculture allied advances 1.98 1.08

Non-Priority sectors 70.52 38.48 Total: 183.26 100.00

Note: During the year 2010, out of total loans and advances 38.48% were given to Non-priority sector, 18.20% were given to small scale industries and 17.79% were given to wholesale and retail trade.

YEAR WISE LOANS AND ADVANCES FOR THE YEAR 2011

Rs.(in % of total Loans crores) Advances Priority Sectors 1. Small Scale Industries 37.05 16.57

2. Professional, self- employees,Artisans Craftmans & Transport operators 12.08 5.40

3. Education 8.01 3.58

4. Wholesale & Retail Trade 37.42 16.74

5. Construction/Housing /Repairs of Building 35.16 15.73

6. Consumption Loans - -

7. Loans to IT/Software - - industry

8. Agriculture allied advances 6.40 2.86

Non-Priority sectors 87.45 39.12 Total: 223.57 100.00 Note: During the year 2011, out of total loans and advances 2.86% were given as agriculture allied advances, 3.58% were given to Education, 39.12% were given to Non-Priority Sector.

YEAR WISE LOANS AND ADVANCES FOR THE YEAR 2012

Rs.(in % of total Loans crores) Advances Priority Sectors 1. Small Scale Industries 48.36 20.48

2. Professional, self- employees,Artisans Craftmans & Transport operators 13.59 5.78

3. Education 8.61 3.67

4. Wholesale & Retail Trade 41.67 17.72

5. Construction/Housing /Repairs of Building 37.41 15.90

6. Consumption Loans - -

7. Loans to IT/Software - - industry

8. Agriculture allied advances 2.98 1.27

Non-Priority sectors 82.74 35.18 Total: 235.17 100.00 Note: During the year 2012, out of total loans and advances 35.18% were given to Non-priority sector, 20.48% were given to small scale industries and 1.27% to agriculture.

YEAR WISE LOANS AND ADVANCES FOR THE YEAR 2013

Rs.(in % of total Loans crores) Advances Priority Sectors 1. Small Scale Industries 29.57 12.57

2. Professional, self- employees,Artisans Craftmans & Transport operators 10.69 4.54

3. Education 9.35 3.97

4. Wholesale & Retail Trade 52.64 22.36

5. Construction/Housing /Repairs of Building 37.90 15.26

6. Consumption Loans - -

7. Loans to IT/Software - - industry

8. Agriculture allied advances 6.94 2.95

Non-Priority sectors 90.24 38.35 Total: 235.33 100.00

Note: During the year 2013, out of total loans and advances 22.36% were given to Wholesale & Retail Trade, 15.26% were given to construction /Houses / Repairs to building and 2.95% were given to agriculture.

YEAR WISE LOANS AND ADVANCES FOR THE YEAR 2014

Rs.(in % of total Loans crores) Advances Priority Sectors 1. Small Scale Industries 17.15 10.48

2. Professional, self- employees,Artisans Craftmans & Transport operators 9.98 6.10

3. Education 5.71 3.49

4. Wholesale & Retail Trade 40.50 24.75

5. Construction/Housing /Repairs of Building 31.81 19.44

6. Consumption Loans - -

7. Loans to IT/Software 0.01 - industry

8. Agriculture allied advances 2.88 1.76

Non-Priority sectors 55.62 33.98 Total: 163.66 100.00

Note: During the year 2014, out of total loans and advances 33.98% were given to Non-priority sector, 24.75% were given to wholesale & retail trade, 19.44% were given to repairs to building, 10.48% to small scale industries and 1.76% to agriculture.

YEAR WISE PERCENTAGE CHANGE OF PERSONAL LOANS

Year Professionals, Self- Non-priority Total Change Employees, Artisans 2009 7.15 64.20 71.35 -

2010 8.50 70.52 79.02 10.74%

2011 12.08 87.45 99.53 25.95%

2012 13.59 82.74 96.33 -3.21%

2013 10.69 90.24 100.93 4.77%

2014 9.98 55.62 65.6 -35%

Year % change 2010 10.74 2011 25.95 2012 -3.21 2013 4.77 2014 -35.00 PERSONAL LOAN APPRAISAL

FORMULA USED TO CALCULATE EMI

Step - 1

PVAF = 1 - 1 (1+r/m)mn (Present value annuity factor) r/m

Step - 2

EMI = Principal Value PVAF Case study 1

Purpose - Daughter marriage EMI = Principle Amount - 50,000/- PVAF EMI - 2082 PVAF = 1 - 1 1 - 1

Period - 30 months

(1+r/m)mn (1+0.015)30=24.01

Interest - 18% r/m 0.015 EMI = 5000 = 2082 24.01

Month EMI Principle Interest Balance - - - - 50,000 1 2082 1332 756 48,668 2 2082 1352 730 47,316 3 2082 1372 710 45,944 4 2082 1393 689 44,551 5 2082 1414 668 43,137 6 2082 1435 647 41,702 7 2082 1456 626 40,246 8 2082 1478 604 38,768 9 2082 1500 582 37,268 10 2082 1523 559 35,745 11 2082 1546 536 34,199 12 2082 1569 513 32,630 13 2082 1593 489 31,037 14 2082 1616 466 29,421 15 2082 1641 441 27,780 16 2082 1665 417 26,115 17 2082 1690 392 24,425 18 2082 1716 366 22,709 19 2082 1741 341 20,968 20 2082 1767 315 19,201 21 2082 1794 288 17,407 22 2082 1821 261 15,586 23 2082 1848 234 13,738 24 2082 1876 206 11,862 25 2082 1902 180 9,960 26 2082 1933 149 8,027 27 2082 1962 120 6,065 28 2082 1991 91 4,074 29 2082 2021 61 2,053 30 2082 2053 29 - Case Study 2 Purpose - Children education EMI 1 - 1 1 - 1 Amount - 30,000/- (1+r/m)mn (1+0.015)35 EMI - 1111/- PVAF r/m 0.015 = 27 Period - 35 months EMI = Principle 30,000 = 1111 Interest - 18% PVAI 27 Month EMI Principle Interest Balance 30,000 1 1111 661 450 29,339 2 1111 671 440 28,668 3 1111 681 430 27,987 4 1111 691 420 27,296 5 1111 702 409 26,594 6 1111 712 399 25,882 7 1111 723 388 25,159 8 1111 734 377 24,425 9 1111 745 366 23,680 10 1111 756 355 22,924 11 1111 767 344 22,157 12 1111 779 332 21,378 13 1111 790 321 20,588 14 1111 802 309 19,786 15 1111 814 297 18,972 16 1111 826 285 18,146 17 1111 839 272 17,307 18 1111 851 260 16,456 19 1111 864 247 15,592 20 1111 877 234 14,715 21 1111 890 221 13,825 22 1111 904 207 12,921 23 1111 917 194 12,004 24 1111 931 180 11,073 25 1111 945 166 10,128 26 1111 959 152 9,169 27 1111 973 138 8,196 28 1111 988 123 7,208 29 1111 1003 108 6,205 30 1111 1018 93 5,187 31 1111 1033 78 4,154 32 1111 1048 62 3,105 33 1111 1064 47 2,041 34 1111 1080 31 961 35 975 961 14 -

Case Study 3

Purpose - Development EMI - Principle

of Business PVAF

Amount - 25000/- PVAF = 1 - 1 1- 1 EMI (1+r/m)mn (1+0.05)18 0.235=15.66 Period - 18months r/m 0.015 0.015 Interest - 18% EMI = 25000 = 1596 15.66

Month EMI Principle Interest Balance 25,000 1 1596 1221 375 23,779 2 1596 1239 357 22,540 3 1596 1258 338 21,282 4 1596 1277 319 20,005 5 1596 1296 300 18,709 6 1596 1315 281 17,394 7 1596 1335 261 16,059 8 1596 1355 241 14,704 9 1596 1375 221 13,329 10 1596 1396 200 11,933 11 1596 1417 179 10,516 12 1596 1438 158 9,078 13 1596 1460 136 7,618 14 1596 1482 114 6,136 15 1596 1504 92 4,632 16 1596 1527 69 3,105 17 1596 1549 47 1,556 18 1579 1556 23 - Case Study 4

Purpose - Domestic EMI = Principle Amount - 25,000 PVAF EMI - 1246 PVAF = 1 - 1 1 - 1

Period - 24 months (1+r/m)mn (1+0.015)24 Interest - 18% r/m 0.015 = 20.06 EMI = 25,000 = 1246 20.06

Month EMI Principle Interest Balance 0 - - - 25,000 1 1246 871 375 24,129 2 1246 884 362 23,245 3 1246 897 349 22,348 4 1246 911 335 21,437 5 1246 924 322 20,513 6 1246 938 308 19,575 7 1246 952 294 18,623 8 1246 967 279 17,656 9 1246 981 265 16,675 10 1246 996 250 15,679 11 1246 1011 235 14,668 12 1246 1026 220 13,642 13 1246 1041 205 12,601 14 1246 1057 189 11,544 15 1246 1073 173 10,471 16 1246 1089 157 9,382 17 1246 1105 141 8,277 18 1246 1122 124 7,155 19 1246 1139 107 6,016 20 1246 1156 90 4,860 21 1246 1173 73 3,687 22 1246 1191 55 2,496 23 1246 1209 37 1,287 24 1246 1227 19 60 - - - - -

Case Study 5

Purpose - Medical EMI - Principal Amount - 20,000 PVAF Period -24months PVAF = 1- 1 1 - 1

EMI - 1000 (1+r/m)mn (+0.015)24 = Interest - 18% r/m 0.015 EMI = 20,000 = 1000 20.01

Month EMI Principle Interest Balance 0 - - - 20,000 1 1000 700 300 19,300 2 1000 710 290 18,590 3 1000 721 279 17,869 4 1000 732 268 17,137 5 1000 743 257 16,394 6 1000 754 246 15,640 7 1000 765 235 14,875 8 1000 777 223 14,098 9 1000 789 211 13,309 10 1000 800 200 12,509 11 1000 812 188 11,697 12 1000 825 175 10,872 13 1000 837 163 10,035 14 1000 849 151 9,186 15 1000 862 138 8,324 16 1000 875 125 7,449 17 1000 888 112 6,561 18 1000 902 98 5,659 19 1000 915 85 4,744 20 1000 929 71 3,815 21 1000 943 57 2,872 22 1000 957 43 1,915 23 1000 972 28 943 24 957 943 14 -

Case Study 6

Purpose - Daughter’s EMI - Principle

Education PVAF Amount - 25,000 PVAF = 1 - 1 1 - 1 EMI - 1220 (1+r/m)rm (1+0.013)24 0.266 Period - 24 months r/m 0.013 0.013 Rate - 16% EMI = 25000 = 1220 20.48 = 20.48 Month EMI Principle Interest Balance 0 - - - 25,000 1 1220 887 333 24,113 2 1220 899 321 23,214 3 1220 911 309 22,303 4 1220 885 335 21,418 5 1220 935 285 20,483 6 1220 948 272 19,535 7 1220 960 260 18,575 8 1220 973 247 17,602 9 1220 986 234 16,616 10 1220 999 221 15,617 11 1220 1012 208 14,605 12 1220 1026 194 13,579 13 1220 1039 181 12,540 14 1220 1053 167 11,487 15 1220 1067 153 10,420 16 1220 1081 139 9,339 17 1220 1089 124 8,243 18 1220 1110 110 7133 19 1220 1125 95 6,008 20 1220 1140 80 4,868 21 1220 1155 65 3,713 22 1220 1171 49 2,542 23 1220 186 34 1,356 24 1374 1356 18 -

Case Study 7

Purpose - Domestic EMI - Principal Amount - 36,000 PVAF Instalment - PVAI = 1 - 1 1 - 1

Period - 35 mont (1+r/m) nm (1+0.013)35 = 0.363 =27.95 Interest - 16% r/m 0.013 0.013 EMI = 36,000 = 1288 27.95

Month EMI Principle Interest Balance 0 - - - 36,000 1 1288 809 479 35,191 2 1288 820 468 34,371 3 1288 831 457 33,540 4 1288 843 446 32,698 5 1288 853 435 31,845 6 1288 864 424 30,981 7 1288 876 412 30,105 8 1288 888 400 29,217 9 1288 902 386 28,315 10 1288 912 376 27,403 11 1288 924 364 26,479 12 1288 936 352 25,543 13 1288 948 340 24,595 14 1288 961 327 23,634 15 1288 974 314 22,660 16 1288 987 301 21,673 17 1288 1000 288 20,673 18 1288 1013 279 19,660 19 1288 1027 261 18,633 20 1288 1040 248 17,893 21 1288 1054 234 16,539 22 1288 1068 220 15,471 23 1288 1082 206 14,389 24 1288 1097 191 13,292 25 1288 1111 177 12,181 26 1288 1126 162 11,055 27 1288 1141 147 9,914 28 1288 1156 132 8,758 29 1288 1172 116 7,586 30 1288 1187 101 6,399 31 1288 1203 85 5,196 32 1288 1219 69 3,977 33 1288 1235 53 2,742 34 1288 1252 36 1,490 35 1510 1490 20 Case Study 8

Purpose - Children education EMI = P Amount - 40,000 PVAF EMI - 1438 PVAF = 1 - 1

Period - 35 months (1+0.0133)35 = 0.369 = 27.81 Rate - 16% 0.0133 0.0133 EMI = 40,000 = 1438 27.8%

Month EMI Principle Interest Balance 0 - - - 40,000 1 1438 906 532 39,094 2 1438 918 520 38,176 3 1438 930 508 37,246 4 1438 943 495 36,303 5 1438 955 483 35,348 6 1438 968 470 34,380 7 1438 981 457 33,399 8 1438 994 444 32,405 9 1438 1007 431 31,398 10 1438 1020 418 30,378 11 1438 1034 404 29,344 12 1438 1048 390 28,296 13 1438 1062 376 27,234 14 1438 1076 362 26,158 15 1438 1090 378 25,068 16 1438 1105 333 23,963 17 1438 1119 319 22,844 18 1438 1134 304 21,710 19 1438 1149 289 20,561 20 1438 1165 273 19,396 21 1438 1180 258 18,216 22 1438 1196 242 17,020 23 1438 1212 226 15,808 24 1438 1228 210 14,580 25 1438 1244 194 13,336 26 1438 1261 177 12,075 27 1438 1277 161 10,798 28 1438 1294 144 9,504 29 1438 1312 126 8,192 30 1438 1329 109 6,863 31 1438 1347 91 5,516 32 1438 1365 73 4,151 33 1438 1383 55 2,768 34 1438 1401 37 1,367 35 1385 1367 18 - Case Study 9

Purpose - Business Development EMI - Principle Amount - 20,000 PVAF Instalment - 813 PVAF = 1 - 1 Period - 30 months (1+0.0133)30= 0.327 = 24.59 Rate - 16% 0.0133 0.0133 EMI - 20,000 24.59 = 813 Month EMI Principle Interest Balance 0 - - - 20,000 1 813 547 266 19,453 2 813 554 259 18,899 3 813 562 251 18,337 4 813 569 244 17,768 5 813 577 236 17,191 6 813 584 229 16,607 7 813 592 221 16,015 8 813 650 213 15,415 9 813 608 205 14,807 10 813 616 197 14,191 11 813 624 189 13,567 12 813 633 180 12,934 13 813 641 172 12,294 14 813 650 163 11,643 15 813 658 155 10,985 16 813 667 146 1,318 17 813 676 137 9,642 18 813 685 128 8,957 19 813 694 119 8,263 20 813 703 110 7,560 21 813 712 101 6,848 22 813 722 91 6,126 23 813 732 81 5,394 24 813 741 72 4,653 25 813 751 62 3,902 26 813 761 52 3,141 27 813 771 42 2,370 28 813 781 32 1,589 29 813 792 21 797 30 808 797 11 - Case Study 10

Purpose - Purchase of EMI - P

colour T.V.& DVD PVAF Amount - 15000/- PVAF = 1- 1 0.211 = 15.89 Instalment - 944 (1+0.0133)18 = 0.0133 Period - 18 months 0.0133 Rate - 16% EMI = 1500/15.19 = 944

Month EMI Principle Interest Balance 0 - - - 15,000 1 944 744 200 14,256 2 944 754 190 13,502 3 944 764 180 12,738 4 944 775 169 11,963 5 944 785 159 11,178 6 944 795 149 10,383 7 944 806 138 9,577 8 944 817 127 8,760 9 944 827 117 7,933 10 944 838 106 7,095 11 944 850 94 6,245 12 944 861 83 5,384 13 944 872 72 4,512 14 944 884 60 3,628 15 944 896 48 2,732 16 944 908 36 1,824 17 944 920 24 904 18 916 904 12 -

Case Study 11

Purpose - House Repair EMI = P Amount - 50,000 PVAF Instalment - PVAF = 1 - 1 Period - 35 months (1+0.0133)35 = 0.369 = 27.81 Rate - 16% EMI = 50,000/27.81=1798 0.0133

Month EMI Principle Interest Balance 0 - - - 50,000 1 1798 1133 665 48,867 2 1798 1148 650 47,719 3 1798 1164 635 46,555 4 1798 1179 619 45,376 5 1798 1194 604 44,182 6 1798 1210 588 42,972 7 1798 1226 572 41,746 8 1798 1243 555 40,503 9 1798 1259 539 39,244 10 1798 1276 522 37,968 11 1798 1293 505 36,675 12 1798 1310 488 35,365 13 1798 1328 470 34,037 14 1798 1345 453 32,692 15 1798 1363 435 31,329 16 1798 1381 417 29,948 17 1798 1400 398 28,548 18 1798 1418 380 27,130 19 1798 1437 361 25,693 20 1798 1456 342 24,237 21 1798 1426 322 22,761 22 1798 1495 303 21,266 23 1798 1515 283 19,781 24 1798 1535 263 18,216 25 1798 1556 242 16,660 26 1798 1576 222 15,084 27 1798 1597 201 13,487 28 1798 1619 179 11868 29 1798 1640 158 10,228 30 1798 1662 136 8,566 31 1798 1684 114 6,882 32 1798 1706 92 5,176 33 1798 1729 69 3,447 34 1798 1752 46 1,695 35 1718 1695 23 - Chapter – V

Conclusions Suggestions

&

Bibliography

CONCLUSION

In this study I found that there is a gradual change in the attitude of the bank in lending personal loans. When comparing with year 2009 there was an increase in 10.94% in personal loan lending in year 2010 and in 2011 there was an increase of 25.95%, compared to year 2010. During the period 2012, there was a negative increase in personal loan lending i.e., -3.21. In 2013, again there was a surge for personal loan lending by 4.77%.

During 2014 there was an abate in lending by negative 35%.

With this analysis I conclude that the bank is taking corrective measures in its policy of personal loan lending. Personal loan lending is of high risk, because of its unsecured nature. Banks lend personal loans without security, guarantee, and in speed, to attract the customers.

Recovering money lent in the form of personal loans to the customers is a

Herculean task for banks. So the banks should be very conservative in lending personal loans.

Suggestions

1. Resistance from bank official to reveal data related to loan appraisal system.

2. All the data used are of secondary nature.

3. Dependence on published data of various organizations Calculation of EMI’s in the bank is through computer, the EMI calculated in this project is by using calculator, there may be some variance in actual EMI of the bank and calculated EMI.

B I B L O G R A P H Y

1. FINANCIAL INSTITUTION AND MARKET L.M. BHOLE

2. FINANCIAL SERVICES M.Y. KHAN

3. BANKING THEORY AND LAW AND PRACTICE S.N.MAHESHWARI & R.R. PAUL

4. IBA BULLETINS BANKING JOURNALS PUBLISHED BY INDIAN BANKS ASSOCIATION

5. BANK’S CIRCULARS CIRCULARS BY SBI

6. WEBSITE WWW.MYSOREBANK.COM