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A Project Repot On Study of Loans& Advances

At AMRELI NAGRIK SAHAKARI BANK LTD

Under the Guidance of (in Company) P.R.Padsala Yogesh Gandhi Under the Guidance of (College) Dr, Vishal Patidar

Institution

Submitted to Gujarat Technological University - Ahmedabad

Prepared By: MIHIR V GADHIYA

M.B.A. Sem. II, Seat No13987

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Company Certificate

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K. K. Parekh Institute of Management Student Amreli


Dr. Jivraj Mehta Vidhya Vihar Campus Lathi road Amreli Ph: (02792) 223509 fax: (02792) 223509 E-mail: kkpimsa@yahoo.com Web: kkpimsamreli.com

DIRECTORS RECOMMENDATION
TO, The Registrar Gujarat Technological University Ahmedabad

Subject: MBA Summer Training Project Report

Respected Sir,

I am recommending the Summer Training Project entitled- Study of Loans& Advances prepared by GADHIYA MIHIR VINODRAI at AMRELI NAGRIK requirement for

SAHAKARI BANK LTD as the partial fulfillment of the University

the award of MBA degree of Gujarat Technology University Ahmedabad.

Date: Place: - Amreli

Thanking You, Yours Faithfully

Director

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STUDENT DECLARATION

I the undersigned student GADHIYA MIHIR VINODRAI of K. K. Parekh Institute of Management Studies Amreli M.B.A. II Semester, hereby declare that, the project on Study of Loans& Advances my own work.

In the partial fulfillment of Master Degree of Business Administration, I had undergone project work at NAGRIK SAHAKARI BANK LTD under the guidance of Yogesh Gandhi K. K. Parekh Institute of Management Studies Amreli and submitted to Gujarat Technological University, Ahmedabad.

This project work is my original work and has not been submitted to any where earlier.

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PREFACE

Being a management student, it is not enough for us to have a look only on the theoretical aspect of the studies. As per our curriculum of Gujarat technological university Ahmadabad all student of MBA have to under go training for 6 weeks at industries unit or service sector and to prepare its report. The main objective behind it is to make students familiar with the practical business environment. Luckily, I took the grand training at the well-known service sector of the banking services in Amreli Nagrik Sahakari Bank Ltd., Amreli.

This report deals exclusively with the concerned unit. This is the most appropriate looking. I have tried to deal with it thoroughly and yet in a simple and lucid manner.

The main thread of training has been closely followed and it is sincerely hope that the report will thus achieve its purpose.

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ACKNOWLEDGEMENT
The work presented here is not a single effort each and every person is associated with this project has contributed in the successful accomplishment of this piece of work and is being thanked for their efforts. I would like to express my warm gratitude towards Mr.P.R.Padsala (Branch Manager) and Mr. Yogesh Gandhi (Assistant Manager) for giving such a great opportunity for learning and developing myself during the project. I also thank my esteemed professors whose diligent efforts made this report possible and to all those who may have contributed to this work . Last but not the least, my parents deserve my special thanks for being patient and helping me while I was busy working on this report.

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EXECUTIVE SUMMARY
As a first year MBA Programme, I carried out my research project work. My topic is To study loans & advances. In order to study the of the loans & advances ANSB, the project starts with the introduction to industry profile and company profile and also the general study of the all department of the company. The research study adopted was descriptive research also was also used the secondary data like annual report, some books and internet website. After collecting the relevant information from the ANSB the data were analyzed with the help of different various statistical tools, charts and graphs. From this analysis, I was able to draw upon the various conclusions relating to of the loans & advances company.

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INDEX
Chapter no.
1 1.1 1.2 1.3 2 2.1 2.2 2.3 2.4 2.5 3 3.1

Particular
Industry Profile Introduction History of Banking in India Introduction to Co-Operative Bank Company profile Introduction to ANSB Ltd. Introduction History of ANSB Management Structure Board of Director Four Functions of Bank Product of banks Analysis of Bank Product Portfolio of ANSB Ltd. Saving Accounts Current Accounts Fixed Deposit Recurring Deposit Human Resource Management Introduction Scope of HRM Information about HRM of ANSB Ltd Welfare Activity Marketing Management Introduction Organization of Marketing Dept. Product Planning Advertising Finance Department Introduction Capital Structure Financial Statement Research Methodology Introduction Define the Problem Objective of the study Rationale of the study imitations of the study Data collection Data analysis & interpretation Finding and suggestions Conclusion Bibliography

Page no.
2 3 5 7 11 12 13 14 15 16 17 18

3.2

3.3

3.4

4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10

19 20 22 25 26 27 28 29 30 31 32 33 33 35 36 37 38 46 47 48 48 49 49 50

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INTRODUCTION TO BANKING

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INTRODUCTION TO BANKING
A bank is a commercial or state institution that provides financial services, including issuing money in various forms, receiving deposits of money, lending money and

processing transactions and the creating of credit. A bank is a commercial or state institution that provides financial services, including issuing money in various forms, receiving deposits of money, lending money and

processing transactions and the creating of credit with bank. Technology is having a major impact on the banking industry. For example, many routine bank services that; required a teller, such a withdrawals or deposits, are now available through ATMs that allow people to access their accounts 24 hours a day. Also, direct deposit allows companies and governments to electronically transfer payment into various accounts. Further, debit cards, which may also used ATM cards, instantaneously deduct money from an account when the card is swiped across a machine at a stones cash register. Electronic banking by phone or computer allows customer to pay bills and transfer money from one account to another. Though these channels, banks customer can also access information such as account balances and statement history. Some banks have begun offering online account aggregation, which makes available in one place detailed and up-to date information on a customers accounts held at various institutions.

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HISTORY OF BANKING IN INDIA


Gone are days when the most efficient bank transferred money from without a sound and effective banking system In India cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades Indias banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote comes of the country. This is one of the main reasons of Indias growth process. The governments regular policy for Indian bank since 1969 has pa id rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice one branch to other in two days. Now it is simple as instant messaging or dials a pizza. Money be come the order of the day. The first in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian banking Systems can be segregated into four district phases. They are asunder. Early phase from 1786 to 1969 of Indian Banks (Pre-nationalization) Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & banking Sector reforms after 1991. (Liberalization) Current scenario.

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TYPES OF BANKS
Banks activities can be divided into 1. Retail Banking dealing directly with individuals and small businesses; business banking, providing services to mid-market business; corporate banking, directed at large business entities. E.g. Private banks, Commercial banks, Postal saving banks. 2. Investment Banking relating to activities on the financial markets. E.g. Merchant banks, Venture capital firms. 3. Universal banking which performs both the activities.

SERVICES OFFERED BY BANKS


The basic type of services offered by a bank depends upon the type of bank and the country, services provided usually include: Taking deposits from their customers and issuing current or check accounts and saving accounts to individual and businesses. Extending loans to individuals and businesses. Cashing check Facilitating money transactions such as wire transfers and cashiers checks Issuing credit cards, ATM cards, and debit cards. Storing valuables, particularly in a safe deposit box. Cashing and distributing bankrolls. Consumer & commercial financial advisory services. Pension & retirement planning Telephone banking Online banking

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INTRODUCTION TO CO-OPERATIVE BANKING


Co-operative banking in India has made substantial progress in dissemination of banking services based on co-operative principles. In view of the special thrust on financial inclusion, co-operative banking has acquired renewed significance in the Indian financial system. The co-operative banking structure in India comprises two main components: A. Urban co-operative banks B. Rural co-operative credit institutions While urban co-operative banks have a single tier structure, rural co-operatives have a complex structure. The Urban co-operative banks in India are supervised by RBI and Rural co-operative credit institutions in India are supervised by NABARD. State Registrars of co-operative credit societies also regulate certain function of both urban and rural co-operative banks. These Rural co-operative credit institutions focus on providing typically medium to longterm loans for making investments in agriculture, rural industries, and lately housing. The structure of rural co-operative banks is not uniform across the states of the country, and arises significantly from one state to another. Rural co-operative credit institutions have two distinct structures:

1) Short-term co-operative credit structure (STCCS) 2) Long-term co-operative credit structure (LTCCS) Within the short-term co-operative credit structure (STCCS), primary agricultural credit societies (PACS) at the village level from the base level, while district central co-operative banks (DCCBs) are placed at the intermediate level and the state co-operative banks (SCBs) at the apex level. The STCCS mostly provide crop and other working capital loans primarily for a short period to farmers and rural artisans. The long-term structure of rural co-operatives comprises state co-operative agriculture and rural development banks (SCARDBs) at the state level, and primary co-operative agriculture and rural development banks (PCARDBs) at the decentralized district or block level. These institutions focus on providing typically medium to long-term loans for making investments in agriculture, rural industries and lately housing. Given the significant role played by Urban co-operative banks in providing banking services to the middle and lower income people, the reserve bank continued to take initiatives to strengthen these banks. The term Urban co-operative banks, though not formally defined, refers to primary cooperative banks located in urban and semi-urban areas. These banks, till 1996, were - 15 -

allowed to lend money only for non-agricultural purposes. This distinction does not hold today. These banks were traditionally centered on communities, localities work place groups. They essentially lent to small borrowers and businesses. Today, their scope of operations has widened considerably. The origins of the urban co-operative banking movement in India can be traced to the close of nineteenth century when, inspired by the experiments related to the cooperative movement in Britain and the cooperative credit movement in Germany such societies were set up in India. Cooperative societies are based on the principles of cooperation, - mutual help, democratic decision making and open membership. Cooperatives represented a new and alternative approach to organization as against proprietary firms, partnership firms and joint stock companies, which represent the dominant form of commercial organization.

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THE BEGINNING OF COOPERATIVE BANKS IN INDIA


The first known mutual aid in India was probably the Anyonya Sahakari Mandali organized in the erstwhile princely state of Baroda in 1889 under guidance of Vithal Laxman also known as Bhausaheb Kavthekar. Urban cooperative credit societies, in their formative phase, came to be organized on a community basis to meet the consumption oriented credit needs of their members. Salaryearners societies inculcating habits of thrift and self-help played a significant role in popularizing the movement, especially amongst the middle class as well as organized labor. From its origins then to today, the thrust of UCBsm historically, has been to mobilize savings from the middle and low-income urban groups and purvey credit to their members many of which are longed to weaker sections. The enactment of Cooperative Credit Societies Act, 1904, however, gave the real impetus to the movement. The first urban cooperative credit society was registered in Canjeevaram (Kanjivaram) in the erstwhile Madras province in October 1904. Amongst the prominent credit societies were the Pioneer Urban in Bombay (November 11, 1905), the No. 1 Military Accounts Mutual help Cooperative Credit Society in Poona (January 9, 1906), Cosmos in Poona (January 18, 1906), Gokak Urban (February 15, 1906) and Belgaum Pioneer (February 23, 1906) in the Belgaum district, the Kanakavli-Math Cooperative Credit Society and the Varavade Weavers, Uraban Credit Society (March 13, 1906) in the South Ratnagiri (now Sindhudurg) district. The most prominent amongst the early credit societies was the Bombay Urban Cooperative Credit. Society, sponsored by Vithaldas and Lallubhai Samaldas established on January 23, 1906. The Cooperative Credit Societies Act, 1904 was amended in 1912, with a view to broad basing it to enable organization of non-credit societies. The Maclagan Committee of 1915 was appointed to review their performance and suggest measures for strengthening them. The committee observed that such institutions were eminently suited to cater to the needs of the lower and middle-income strata of society and would inculcate the principles of banking amongst the middle classes. The committee also felt that the urban cooperative credit movement was move viable than agricultural credit societies. The recommendations of the committee went a long way in establishing the urban cooperative credit movement in its own right. The constitutional reforms which led to the passing of the government of Indian Act in 1919 transferred the subject of Cooperation from Government of India to the provincial Governments. The Government of Bombay passed the first state Cooperative societies Act - 17 -

in 1925 Which not only gave the movements to its size and shape but was a pace setters of cooperative activities and stressed the basic concept of thrift, self-help and mutual-aid. Other states followed. This marked the beginning of the second phase in the history of cooperative credit institutions. There was the general realization that urban banks have a important roll to play in economic constructions. This was asserted by a host of committees. The Indian central banking enquiry committee (1931) felt that, urban banks have a duty to help the small business and middle class peoples. The Mehta-Bhansali committee (1939) recommended that those societies which had fulfilled the criteria of banking should be allowed to work as banks and recommended an Association for this bank. The co-operative planning committee (1946) went on record to say that urban banks have been the best agencies for small people in whom joint stock banks are not generally interested. The rural banking enquiry committee (1950), impressed by the low cost of establishment and operations recommended the establishment of such banks even in places smaller than taluka town. In the year 1958-59, RBI studied the urban co-operative banks and report was published in 1961, emphasizing the need to establish primary urban co-operative banks in new centers and suggested that state government land active support to their development. In 1963, Varde committee recommended that such banks should be organized at all urban centers with a population of 1 lakh or more and not by any single community or cast. The committee introduced the concept of minimum capital requirement.

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INTRODUCTION OF ANSB BANK


ANSB Bank was received an in-principal approval from the reserve bank of India (RBI) to set up a bank in the cooperative sector, in 1964 during the period of nationalization of the Indian banking sector in India. ANSB was incorporated in July 1964 in the name of Amreli Nagrik Sahkari Bank Limited, with registered office in Amreli, India. The company operates through one main branch in Amreli District. The bank has one branch at Chital, Amreli and bank day to day business is carried through on a real time online basis. Customers in main branches can be serviced through the companys telephone banking facilities. ANSB bank conducts retail-banking services. The objective of the retail bank business segment is to provide a full range of financial products and services. Its operations through three core business segments, which include: Deposits, advances, and other services. Its deposits banking business segment targets large, manufacturing companies in the Amreli district. The business segment provides wide range of banking services including current account, saving account, special saving account, fixed deposit account, and recurring services. Its second business segment, advances against Gold ornaments and land and building and land and building. Meanwhile, its third business segment, other services, provides locker facility, drafts are issued by banks for particular location in India and collects the cheque and bills of outstations.

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HISTORY OF ANSB BANK


On 20/08/1964 the bank was inaugurates with the hand of collector shree Govindsinghji Chudasama. The bank was registration number 1011 under cooperative Act. 1960. on 7 august 1967; it has been changed to 8905. On 11/02/1998 the license no, was UBD/GUJ/1546 was received from RBI. The first head office of bank opened at JUBILEE DHARMSHALA and it remained there for the period from 1964 to 1998. from 1979 to1985 the banking work was carried on at NAGRIK BHAVAN, Haveli road, Amreli. It was banks own premises. Later in the year 1985 to 1998, it was shifted to JIVRAJ BHAVAN, Dr.. JIVRAJ MEHTA ROAD, AMRELI. ANSB was established in 1962 Shri Premjibhai Leava of amreli (MLA) of that period who was the chairman of the bank and the M.D. was Shri Gokulbhai patel (MLA) Liliya Taluka, who started with 415 person of staff in rental building with a start capital of 100 lac. The share value was 10/- each. The main activities of bank, share issue, collect deposits, advances for secured & unsecured and the function was followed as per RBI guidelines. The registration with RBI was completed in 1995 and RBI license was received in 1995 and today this SAHAKARI Bank is operating as per directives of RBI (Reserve Bank Of India). Act1949 by follows the Gujarat state co-operative. Bank have achieved the resects beyond expectation on in the services concepts.

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MANAGEMENT STRUCTURE

CHAIRMAN

MANAGING DIRECTOR

DIRECTOR

MANAGER

OFFICERS

CLERK

PEON / WATCHMAN

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BOARD OF DIRECTORS
Mr. P.P.Sojitra (Chairman) Mr. Manoj Gosai (M.D.) Mr. P.R.Padasala (Manager) Mr. Mansukh Dhanani Mr. Hanu Dhorajiya Mr. Paresh Acharya Mr. Ashok Kothiya Mr. Arjun Sosa Mr. Jayesh Nakrani Dr. Dilip Unadkat Mr. kalu Raiyani Mrs. Charulata Gosai

WORKING AREA Amreli District

REGESTERED OFFICE ANSB BANK HOUSE, NAGRIK BHAVAN, KERIYA ROAD, AMRELI-365601. TEL:222000 /231539

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ANALYSIS OF BANK
The bank with its history of 42 glorious years is moving fast ahead to become the states first scheduled Co-operative Bank, some underlining features sets it apart from other banks and which have contributed greatly towards its growth. Some of the HIGHLIGHTS of the bank schemes and banking business are as follows: 1) Deposit Insurance Scheme covers all deposits up to 1 lack. 2) The bank accepts deposits for maximum 10 years. 3) All types of advances on reasonable terms and conditions. 4) Competitive interest rates on advances. 5) Attractive deposit schemes to suit the needs of deposit accounts. 6) Nomination facility available on all types of deposit accounts. 7) Offers higher interest rates on deposits than other nationalized banks. 8) 15% dividend to its shareholders from last six years. 9) Issuing of demand drafts at all major cities and business centers. 10) A class audit classification. 11) Extended banking hours: 8.00 a.m. to 8.00 p.m. 12) Lockers facility available. 13) Draft facility to all its members and non-members. 14) Fully computerized operations. 15) Courteous, quick and efficient services.

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PRODUCT PORTFOLIO OF ANSB


SAVING ACCOUNTS:

A Saving bank Account (SB account) is meant to promote the habit of saving among the people. It also facilitates safekeeping of money. In this scheme fund is allowed to be withdrawn whenever required, without any condition. Hence a saving account is a safe, convenient and affordable way to serve your money. Bank deposits are fairly safe because banks are subject to control of the Reserve Bank of India with regard to several policy and operational parameters. Bank also pays you a minimal Interest for keeping your money with them. These accounts are primarily meant to in calculate a sense of saving for the future, accumulating funds over a period of time. Whatever occupations, we are confident that you will perfect banking solution. Features: The minimum amount to open an account in ANSB Ltd. is Rs. 100. If cheque books are also issued, the minimum balance of Rs. 500 has to be maintained. One cheque book is issued to a customer at a time. A savings account can be opened either individually or jointly with another individual. In a joint account, only the sign of one account holder is needed or write a cheque. But at the time of closing an account, the signs of both the account holders are needed. Returns: The interest rate of saving bank account in ANSB Ltd. is 3%. In saving bank account, bank follows the simple interest method. The rate of interest may change from time to time according to the rules of reserve Bank of India. One can withdraw his/her money by submitting a cheque in the bank and details of the account i.e. the money deposited, withdrawn along with the dates and balance, is recorded in the passbook. Advantages: It is much safer to keep your money at a bank than to keep a large amount of cash in your home. Bank deposits are fairly safe because banks are subject to control of the reserve Bank of India with regard to several policy and operational parameters. The Federal Government insures your money. Saving bank account does not have any fixed period for deposit. The depositor can take money from his/her account by writing a cheque to somebody else or submitting a cheque directly. And ANSB Ltd. also gives computerized facility through with one do the transactions like withdrawals, deposit, statement of account, etc. and these transactions are maintained in computers. - 27 -

All saving accounts have monthly statement free statements are printed in books on their passbook which is issued by a bank itself, cheque books are given to account holders on demand. The saving accounts offered by bank are: Regular saving account. Special saving account An easy-to-operate saving account that allows you to issue cheque, draw demand drafts and withdraw cash. Check-up on your balances from the comfort of your home or office through Phone Banking Check with stamped your account number on each cheque leaf for enhanced security.

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CURRENT ACCOUNT:

Current account is primarily meant businessmen, firms, companies, and public enterprises, etc. that have numerous daily banking transactions. In a current account, a customer can deposit any amount of money any number of times. He can also withdraw any amount as many times as he wants, as long as he has fun as to his credit. Current accounts are meant neither for the purpose of earning interest nor for the purpose of saving but only for convenience of the business. ANSB Ltd. Current Account provides a facility of current banking. Due to current account one can have the power location access to you account from our branches located in Amreli city. Not only have that, one can done most of your banking transactions from the comfort of your office or home without stepping out and its matter to just issue checks. ANSB Ltd. makes its business to help one with his business by offering him a current account with all the benefits one need to stay ahead of competition. ANSB Ltd. understands that running a business requires time and money, also that business needs are constantly evolving. Thats why ANSB Ltd. provides one current account option to exclusively his/her business whatever the size or scope. Current account and control business operation centrally. Enjoy facilities like phone banking that helps you to check your balance and transaction details fund out the states of your cheque or stop check payment. And statements are provided to them on their demand. Regular Current Account (Minimum AQB=Rs, 1000) A current account is ideal for carrying out day-to-day business transactions. With the ANSB Ltd. Regular Current Account, you can access your account through phone banking facility provided by bank, pay using cheque or deposit cheque. Regular Current Account requires you to maintain an average quarterly balance of only Rs. 1000.

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Convenient Banking: Deposit your cheque in branch of a city to your account make payments ANSB Ltd. locating using cheque facility at a nominal rate per transactions. FIXED DEPOSIT

Long-term investments from the chunk of everybodys future plan. An alternative to simply applying for loans,

fixe d deposits allow you to borrow from four own funds for a limited period, thus fulfilling your needs as well as keeping your savings secure. Thus fixed deposit is a betteption for middle class people who cannot afford the higher rA fixed deposit is meant for those investors who want to deposit a lump sum of money for a fixed period: say for a period of 15 days to 5 years and above, thereby earning a higher rate of interest in return. Investor gets a lump sum (principal + interest) at the maturity of the deposit. Banks fixed deposits are one of the most common savings scheme open to an average investor. Fixed deposits also give a higher rate of interest than a saving bank account. The facilities vary from bank to bank. Some of the facilities offered by bank are overdraft (Loan) facility on the amount deposited, premature withdrawal before maturity period (which involves a loss of interest) etc. Features: Bank deposits are fairly because banks are subject to control of Reserve Bank of India (RBI) with regard to several policy and operational parameters. The banks are free to offer varying interests in fixed deposits of different maturities. Interest is compounded once a quarter, leading to a somewhat higher effective rate.

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The minimum deposit amount varies with each bank. It can range from as low as Rs. 100 to an unlimited amount with some banks. Deposits can be made in multiples of Rs.100/Before opening a fixed deposit account, try to check the rates of interest for different periods. It is advisable to keep the amount in five or ten small deposits instead of making one big deposit. In case of any premature withdrawal of partial amount, then only one or two deposits need to be prematurely enchased. The loss sustained in interest will, thus, be less than if one big deposits where to be enchased. Check deposit receipts carefully to see that all particulars have been properly and accurately filled in the thing to consider before investing in fixed deposits is the rate of interest and the inflation rate. A high inflation rate can simply cheap away your real returns.

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Returns:
The rate of interest for fixed deposits of bank varies between 4 and 1 The rate of interest for fixed deposits of bank varies between 4 and 11 % depending upon the maturity period (duration) of the FD and the amount invested. Interest rate also varies between each bank. A bank FD does not provide regular interest income, but a lump-sum amount on its maturity. Some banks have facility to pay interest every quarter or every month, but the interest paid may be at a discounted rate in case of monthly interest. The interest payable on FD can also be transferred to saving bank or current bank account of the customer. The deposit period can vary from 15, 30 or 45 days to 3 months, 6 month, 1 year, 1.5 years to 10 years.

inc
Duration 46-90 days 91-180 days 181-365 days 1-2 years 2-3 years 3-5 years Above 5 years Interest rate (%) per annum 6.0% 6.5% 7.0% 9.5% 9.0% 9.55 8.0%

Advantages: Bank deposits are the safest investment after Post Office savings because all bank deposits are insured under the Deposit Insurance & Credit Guarantee scheme of India. It is possible to get a loan up to 75-90% of the deposit amount from banks against fixed deposit receipts. The interest charged will be 2 % more than the rate of interest earned by the deposit. With effect from A.Y. 1998-99, investment on bank deposits, along with other specified incomes, is exempt from income tax up to a limit of Rs. 12000/- under section 80L. also, from A.Y. 1993-94, bank deposits are totally exempt from Wealth Tax. The 1995 finance bill proposals introduced Tax Deduction at Source (TDS) on fixed deposits on interest incomes of Rs. 5000/- and above per annum

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Guarantee scheme of India. It is possible to get a loan up to 75-90% of the deposit a RECURRING DEPOSIT:

The recurring Deposit in bank is meant for someone who wants to invest a specified some of money on a monthly basis for a fixed rate of return. At the end, you will get the principal sum as well as the interest earned during the period. The scheme, a systematic way for long term savings, is one of the best investment options for the low income groups. Features: The minimum investment of Recurring Deposit varies from bank to bank but usually it begins from Rs. 100/-. There is no upper limit in investing. The rate of interest varies between 7 & 11% depending on the maturity period and amount invested. The interest calculated quarterly or as specified by the bank. The period of maturity ranges from 6 months to 10 years. The deposit shall be paid as monthly installments and each subsequent monthly installment shall be made before the end of the calendar month and shall be equal to the first deposit. In case of default in payment, a default fee is chargeable for delayed deposit at the rate of Rs. 1.50/- for every Rs. 100 per month for deposits up to 5 years and Rs. 2/per Rs. 100/- in case of longer maturities. Since a recurring deposit offers a fixed rate of return, it cannot guard against inflation if it is more than the rate of return offered by bank. Worse, lower the gap between the interest rate on a recurring deposit and inflation, lower your real rate of return. Premature withdrawal is also possible but it demands a loss of interest. Returns: The rate of interest varies between 7 & 11% depending on the maturity period and amount invested. The interest is calculated quarterly or as specified by the bank. Advantages: Some nationalized banks are giving more facilities to their customers: ANSB gives recurring deposit facility to its customers. They can transfer their amount to the account if payment exceeds Rs. 20000. Tax benefit on the interest earned on recurring deposit up to Rs. 12000. tax deductible at source if interest paid on deposit exceed Rs.5000 per customer, per year, per branch. - 33 -

HUMAN RESOURCE MANAGEMENT

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INTRODUCTION TO HRM
It is the person who poses skills, abilities and aptitude that offer competitive advantage to a firm. It is only Human Resource that is capable of deciding, implementing and controlling activities. No computer can be substituted human brains, no machines can be run without intervention and no organization has mandate to exist if it can not serve peoples needs. Human Resource Management is a study about people in organization. How they are hired, trained, compensated, motivated & maintained. Definition: HRM is also a management function concerned with hiring, motivating and maintaining people in an organization. It focuses on people in organization. HRM is a management function that helps manager recruit, select, train, develop members for an organization.

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SCOPE OF HRM:

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INFORMATION ABOUT HUMAN RESOURCE MANAGEMENT OF ANSB LTD


Hours of work Normally 12 hours, but subject to completion target Working in shift Normally there are four shifts into. 1st shift is 8:00 A.M. to 3:00 P.M. 2nd shift is 10:00 A.M to 5:00 P.M. 3rd shift is 11:00 A.M. to 6:00 P.M. 4th shift is 1:00 P.M. to 8:00 P.M. Weekly off: Saturday: Half Day Sunday: Off Pay & salary: Provident fund, Loan, savings are deducted from salary Scheme: Provident fund Pension Life insurance of employees

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WELFARE ACTIVITIES
Welfare activities mainly include retirement benefits, gratuity, provident fund, and pension plan, Transfer Township etc. Gratuity is received at the time of retirement. It is the duty of the organization to look after the employees welfare, health and safety. The facilities provided by Amreli Nagrik Sahakari Bank Ltd. to their employees are as follows: I. If any worker meets with a sudden accident or loose his power to work, the Bank will give him/her Pension facility II. The company has a well organized library in which newspaper, magazine and books relating to Banking. III. The company also gives retired employee Pension facility. IV. The company provided vehicle loan and other allowances.

V. Leave VI. Life insurance is given to the employees at Rs. 50000

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MARKETING MANAGEMENT

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INTRODUCTION OF MARKETING MANAGEMENT:


Marketing in common practice is often described as to make the people aware about the products or service accompany offers and satisfy the expectations of customers with those offerings and make people prefer your product to buy with the ultimate goal of maximizing organizational profit. The modern concept of marketing focuses on the consumers and satisfaction of their expectations, which is said to be a consumer-oriented approach. Effective marketing management is necessary for the success and profitability of a company. Traditional definition of marketing is the business process by which products are attached with markets and through with the transfer or ownership are affected. According to American marketing cost of performance of or business activities that direct the flow services from producers to customers. Modern concept of marketing says that marketing is the creation and delivery of a standard of living to the society. According to Kotler, marketing is human activity directed at satisfied their means and wants through exchange process. Marketing management is the analysis planning implementation and controls the programs designs to maintain benefit exchange with target buyers for the purpse of achieving organization objectives. Marketing concept aims services customer depend by offering right product right place to right customers.

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ORGANIZATION OF MARKETING DEPARTMENT


The banking activities are related to finance. Banks main activities are to collect deposit & lend it to needed peoples. So the deposit is raw material for the bank & the money collected through deposit are the products to lend to needed people & to interest on that. Therefore, the lending of money is product. It is called advance loan, credit etc. so, the marketing management means credit management. Credit department at Head Office are works as marketing department & the product (Loans & Advances) are sold through its branches. Product planning For the Bank, product planning means to plan for various deposits schemes & loan schemes. Product Provided by Bank: Deposit Schemes Current Account Saving Account Special Saving Account Fixed Deposit Account Recurring Loan & Advances Hypothecation Clean c.c. Loan against J.J. Industrial loan Loan against J.N Staff housing Loan Education Loan

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n against F. D .R. & O .D. Loan against gold ornaments Loan s against land & buildings

ADVERTISING
Advertising is the best communication medium through which company can send its message regarding product or anything to its consumer in proper. The company has no specific advertising budget but the company is providing informative booklets or hamlets or catalogs to their regular and potential customers to inform them about its product and changes taking in them. The company has not more scope for advertisement. The company believes that customers satisfaction is best advertisement. Banks do not expense more for advertising. Basically the banks market is mainly rural & agriculture. However, various instruments are used for advertising of the bank & its new scheme related to deposits & advances. The bank advertises through newspapers, local TV channels etc.

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FINANCE DEPARTMENT

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INTRODUCTION
Financial management is the managerial activity which is concerned with the planning and controlling of the firms financial resources. It was a branch of economics till 1980 and as a separate discipline of the firm: The subject of financial management is immense of significance to both academics and practicing managers. It is great significance to academicians because the subject is still developing and there still certain areas where controversies exist for no undivided solution have been reached as yet. Practicing managers are interested in this subject because among the most crucial decision of the firm are the theory of finance management and an understanding of the theory of finance management provides them with conceptual and analytical insight to make those decision. Finance is regarded as the lifeblood of a business organization. The financial management is concern with procuring of financial resources & its judicious utilization with a view to maximize the shareholders wealth. The finance function is more vital crucial to organization. Hence there is need for sound and efficient organization for the finance function. A firm should give proper & due attention to organization of its finance department. Finance function differs from firm to firm. It depends on various factors such as size & nature of firm, firms business capability and financial philosophy of the organization.

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CAPITAL STRUCTURE
Capital structure refers to the mix of funds like debenture long term sources of funds like debenture long term sources of fund like preference and equity shares. Capital including their capital structure these companies do not plan for the short term but they may fact difficulties in raising funds to finance their activates so a company should plan its capital structure to maximize the use of funds and to be able to adopt more easily to the company conditions. The Capital structure is planned initially when a company is incorporated the initial Capital structure should be designed structure and the financial decision should be made to achieve the target capital structure. ANSB Bank Ltd is the co-operative banking sector. So, the shareholders of the bank are known as members of co-operative society. Individual or any co-operative the member of bank.

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FORM OF BALANCE SHEET AMRELI NAGRIK SAHAKARI BANK LTD., AMRELI BALANCE SHEET AS ON 31ST MARCH 2010

Liability Capital Reserve & surplus Deposits Borrowings Other liability Total Liability

Schedule As on 31/03/2010 No. 1 33557310.00 2 3 4 5 84661445.63 725311042.58 0.00 10981152.73 844510950.94

As on 31/03/2009 28926410.00 76688674.69 536644671.92 0.00 23648838.55 665908595.16

Assets Cash in reserve bank Cash in other bank Investment Advances Fixed assets Other assets Total Asset

Schedule As on 31/03/2010 No. 6 7181314.42 7 8 9 10 11 132708304.23 231088312.00 458155809.62 14051434.67 11325776.00 844510950.94

As on 31/03/2009 3069270.15 124014488.19 109959785.00 405937213.15 14192767.67 8735071.00 665908595.16

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AMRELI NAGARIK SAHAKARI BANK LTD. PROFIT &LOSS ACCOUNT FOR THE YEAR ENDED ON 31ST MARCH 2009 PARTICULARS I INCOME Interest earned Other income TOTAL II SCHEDULE NO. 12 13 69768342.34 5442412.05 75550754.39 AS ON 31/03/2009 AS ON 31/03/2010 76702733.23 4873083.72 81575816.95

EXPENDITURE Interest expended Operating expenses Provision expenses TOTAL

14 15 37730902.07 24354224.93 0.00 62085127.00

45315558.00 21148916.01 0.00 66464474.01

III

PROFIT & LOSS Profit for the year Profit brought forward TOTAL APPROPRIATION Transfer to statutory reserves Transfer to other reserves Proposed dividends Balance carried over to B/S TOTAL 13465627.39 26736477.39 7848655.00 2948088.00 13465627.39 13270850.00 26736477.39

15111342.94 13465627.39 28576970.33

2484107.00 2542790.00 3924190.00 3704166.00 15111342.94 25282489.33

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SCHEDULE 1 CAPITAL

PARTICULARS Authorized capital (50,00,000 share of Rs. 10 each) Issued TOTAL

AS ON 31/03/2009 50000000.00 28926410.00 28926410.00

AS ON 31/03/2010 50000000.00 33557310.00 33557310.00

SCHEDULE 2 RESERVE & SURPLUS

PARTICULARS STATUTORY RESERVE Opening balance Addition during the year Deduction during the year TOTAL OF STATUTORY RESERVE OTHER RESERVES Opening balance Addition during the year Deduction during the year TOTAL OF OTHER RESERVE Balance in profit & loss account TOTAL

AS ON 31/03/2009 15565472.91 3511927.00 0.00 19077399.91

AS ON 31/03/2010 19077399.91 3561465.00 0.00 22638864.91

45969857.10 6220950.94 5694116.65 46496691.39 13465627.39 79039718.69

44145647.39 3776590.39 1011000.00 46911237.78 15111342.94 84661445.63

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SCHEDULE 3 DEPOSITS

PARTICULARS Demand deposit (from others) Saving deposits (from others) Term deposits (from others)

AS ON 31/03/2009 46651140.98 97162265.46

AS ON 31/03/2010 42743069.09

138039668.76 392831265.48 544528304.73

TOTAL

536644671.92 725311042.58

SCHEDULE 4 BORROWINGS

PARTICULARS Borrowing capital TOTAL

AS ON 31/03/2009 0.00 0.00

AS ON 31/03/2010 0.00 0.00

SCHEDULE 5 OTHER LIABILITIES & PROVISIONS PARTICULARS Bills payable Interest accrued Other liabilities TOTAL AS ON AS ON 31/03/2009 31/03/2010 343081.00 334734.00 4157615.99 4709399.00 19148141.56 5397019.00 23648838.55 10981152.73

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SCHEDULE 6 CASH IN HAND PARTICULARS Cash in hand TOTAL AS ON 31/03/2009 3069270.15 3069270.15 AS ON 31/03/2010 7181314.42 7181314.42

SCHEDULE 7 BALANCES IN BANKS & MONEY AT CALL & SHORT NOTICE PARTICULARS INVESTMENT IN INDIA 1.Balances in banks (A) In current accounts (B) In other deposit accounts 2. Money at call & short TOTAL AS ON 31/03/2009 AS ON 31/03/2010

32831486.19 91583002.00

48125302.23 84583002.00

0.00 0.00 124414488.19 132708304.23

SCHEDULE 8 INVESTMENT PARTICULARS INVESTMENT IN INDIA (A) Government securities (B) Other approved securities (C) Shares of GSC+IFFCO (D) Other (LIC Group Gratuity scheme sardar sarovar FD) TOTAL AS ON 31/03/2009 AS ON 31/03/2010

94154785.00 168443312.00 0.00 0.00 10505000.00 6505000 7251044.00 17498312

111910829.00 231088312.00

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SCHEDULE 9 ADVANCES Particulars Schedule No. AS ON 31/03/2009 327275157.35 78662055.80 405937213.15 396075900.15 9861313.00 AS ON 31/03/2010 198765297.72 259390511.90 458155809.62 446656292.62 11499517.00

(A)Loan Advances (B)Term Loan TOTAL ADVANCES

II

(A) Secured by tangible assets (B)Unsecured

III (A) Priority Sectors (B) Others TOTAL ADVANCES

302447000.00 103490213.15 405937213.15

338589000.00 119566809.62 458155809.62

SCHEDULE 10 FIXED ASSETS

Particulars I Premises (i) At cost less depreciation as on 31st March for the preceding (ii)Addition during the year (iii) Depreciation of currents year II TOTAL PREMISES (A) Other Fixed Articles (i) At cost less depreciation as on 31st March for the preceding (ii)Addition during the year (iii) Depreciation of currents year TOTAL PREMISES (B) TOTAL

AS ON 31/03/2009 11685493.21 000.00 11685493.21 1168549.00 10516944.21 404284.46 320824.00 4366108.46 690285.00 3675823.46 14192767.67

AS ON 31/03/2010 10516944.21 0.00 10516944.21 1051694.00 19465250.21 3675823.46 1744809.00 5420632.46 834448.00 4586184.46 14051434.67

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SCHEDULE 11 OTHER ASSETS PARTICULARS Interest accrued Stationary and stamps Others TOTAL AS ON AS ON 31/03/2009 31/03/2010 4280578.00 6185971.00 275810.00 1994525.00 4178683.00 4940353.00 8735071.00 11325776.00

SCHEDULE 12 INTEREST EARNED PARTICULARS Interest/discount on advances/bills Income on investment TOTAL INTEREST EARNED AS ON AS ON 31/03/2009 31/03/2010 55156376.61 59617383.76 14111965.73 17085349.47 69768342.34 76702733.23

SCHEDULE 13 OTHER INCOME PARTICULARS Commission Dividend Miscellaneous income TOTAL OTHER INCOME AS ON AS ON 31/03/2009 31/03/2010 1342811.37 888905.89 2969454.35 2792617.77 1470146.35 1191560.06 5782412.05 4873083.72

SCHEDULE 14 INTEREST EXPENDED PARTICULARS Interest on deposits Interest on Borrowing TOTAL INTEREST EXPENDED AS ON AS ON 31/03/2009 31/03/2010 37482199.07 345297333.00 248703.00 18225.00 37730902.07 45315558.00

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SCHEDULE 15 OPERATING EXPENCES PARTICULARS 1. 2. Rent, Taxes & lighting 3. Printing stationary 4. Advertisement & publicity 5. Depreciation on banks property 6. Directors fees and expenses 7. Audit fee 8. Law Charges 9. Postage, telegrams, telephone etc. 10. Repair & maintenance 11. Insurance 12. Other expenditures 13. 2435825.00 0.00 Loss of chital branch TOTAL OPERATING EXPENCES 24354224.93 21148916.01 3328370.04 5536710.54 789269.00 920960.08 80048.00 109931.00 150149.85 143251.00 172589.00 197094.00 130495.00 136000.00 0.00 0.00 1858834.00 1886142.00 177450.00 316834.00 223736.39 0.00 Payment to & provision for employees AS ON AS ON 31/03/2009 31/03/2010 14553251.45 11454788.19 454207.20 447205.20

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INTRODUCTION
Research always begins with a question or a problem, Its purpose to find answers to question through the application of systematic and scientific method, Thus, research is systematic approach towards purposeful investigation. This need formulating a hypothesis, collection of data on relevant variable, analyzing and interpreting the results researching conclusions either in the form of a solution or certain generalizations. Research is an academic activity and a systematized effort to gain new knowledge &

DEFINE THE PROBLEM


Bank has given different types of loans & advances to their customers to provide facilities & services. Because of illiteracy of peoples in this area it is very difficult to understand norms & conditions of loan system. My problem is to study loans & advances of ANSB LTD

OBJECTIVES OF THE PROJECT: "While selecting the project title 'Loans & Advances' there are following Objectives. To study different types of loans given by the bank. To study the procedure of loans and advances of the bank. To study the norms and conditions for sanctioning the loans are studied. To show total advances of the bank. Some focus on the recovery procedure of the loans and advances of the bank. The procedures for giving the loans and advances have been studied.

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RATIONALE OF THE STUDY Any research work that is conducted has some rationale so does my research work also have. Without the rationale of the study one cannot understand why the given topic of research has been selected. 1) Financial discipline on the borrower: As the time of repayment of the loan or its installment is fixed in advances this system ensures a greater degree of self-discipline on the borrower as compared to the cash credit system. 2) Time Period:When any loan is granted to its member, shareholders, it gives full information about of its repayment. On not fulfilling the formalities, the account may be discontinued by the banker. 3) Profitability:The system is comparatively simple interest accrues to the bank on the entire amount lent to a customer.

LIMITATION OF STUDY It may be made clear that research is there to help in decision making & is not a substitute of decision making some of the limitations are given below. Research can provide a number of facts but it does not provide actionable result. Some problems just cannot be researched. For example. Precise estimate of new deposits directly attributable to customer. It cannot provide the answer to any problem but only provide a set of guidelines. Managers rely more on intuition & judgment rather than on research.

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DATA COLLECTON METHOD


Data is required to make a decision in any business situation. The researcher is faced with one of the most difficult problems of obtaining suitable, accurate adequate data. Utmost care must be exercised while collecting data because the quality of the research results depends upon the reliability of the data. Statistical data can be classified into two categories.
Primary data Secondary data

PRIMARY DATA: It is one which is collected by the investigator himself for the purpose of a specific inquiry or study. Such data is original in character and is generated by surveys conducted by investigator or research institution. SECONDARY DATA: When an investigator uses the data which has already been collected by others, such data is called secondary data. The secondary data can be obtained from journals, report, government publications and so on.

My data collection method is secondary data, I used following secondary data. Five years annual report Prospectus of Bank

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DATA ANALYSIS & INTERPRETATION


TYPES OF LOANS Banks grant loan for different periods short medium & for different purpose. Broadly the loans granted by banks are classified as follows. 1. Consumption loans 2. Bridge composite loans 3. Medium & long term loans 4. Short term loans

1) Consumption loans:Though normally banks provide loans for productive purpose only. But as on exception loan are also granted on a limited scale to meet the medical needs or the educational expenses or relating to marriages & other social ceremonies etc. Such loans are called consumption. 2) Bridge composite loans:Bridge loans are granted by bankers or by financial institution themselves & are automatically repaid out of amount of the term loan or the funds raised in the capital market. Bridge loans are essentially short term loan, which are granted to industrial undertaking to meet their urgent & essential needs during the period when formalities for availing for the term Loans sanctioned by financial institutions are being fulfilled or necessary step are being taken to raise the funds from the capital market.

3)Medium & long term loans;-medium:


Medium or long loans are usually called term loans. These loans are granted for more then a year & are meant for purchase of capital assets for the establishment of new units& for loan together with specialized financial institution like industrial financial corporation etc. Such loan constitute a part of the project finance which industrial from different secured by the tangible assets like land, building, plant & machinery etc..

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4) Short term loans;Short-term loan are granted to meet the working capital needs of the borrowers. These loans are granted against the security of tangible assets mainly the immovable assets, & good & commodities, etc.

TYPES OF ADVANCES: Clean loans Letter of credit Overdrafts Cash credit Discounting of bills
Clean loans:-

According to this type of advance, the banker makes on advance to the customer against his personal security & security of one or more persons. The amount is credited to the customer`s amount immediately after sanction & is repayable in lump sum or in installments. The period of loan ranges from one year to ten-twelve years accordingly. It has been classified as: Short term Medium term Long term loans

Short-term loan will be for one year & medium term loan will be from one year to six years & when advance beyond six or seven yearly. It may be long-term loan or simply called term loan. The interest charge on these loans will be slightly higher compared to cash credit or overdrafts. These are clean loans & interest is charged on the entire amount & their operation is very simple, the interest is compounded every quarterly or half yearly rests.

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Letter of credit: A letter of credit is an undertaking given by an issue banker to pay the specified sum of money to the person of drawl bank, which pays money to the holder of L/C. This is a sort of loan facility extended by a banking institution to its customers. This is normally given to customers who will be on travel & to business people.

Overdrafts

The amount so drawn carries on agreed rate of interest. This is type of loan sanctioned to a certain limit against a current account. Overdraft means over drawing the current account up to the sanctioned limit. This is a temporary financial agreement made for a short period by the end of financial year. The borrower should bring back the current account to credit balance. the interest is paid only on the utilized portion of the sanctioned limit, this is disadvantages to the banker hence he charge one percent on unutilized portion of the sanctioned limit and also incorporates the minimum interest clause which is explained under cash credit overdraft is sanctioned against personal securities of the borrower.
Cash credits:-

This is very popular type of advances made by commercial banks. This is sanctioned against the hypothecation or pledge of the goods like agriculture or industrial product or against the guarantee of the individuals or obligates. As per this financial management, some amount of loan sanctioned to the borrower and he can utilize it whenever he wants. It is not obligatory to draw the entire amount in the lump. The cheque is issued against the account as and when required by the loans up to the sanctioned limit. Similarly, the surplus in the hands of loans can be credited to the accounts.

This cash credit account is a running account, which can be operated according to the will of the borrower. The debit balance in the account should not exceed the sanctioned limit. The interest will be charged quarterly or half yearly on the account actually used at an agreed rate. When the cash credit is a sanctioned, the banker should keep the amount at the credit of the borrower irrespective of that he utilizes the amount or not. Therefore cash credit is a popular loan account sanctioned by the commercial banks they are also called revolving goods loan account as the arrangement is made against the stock and it is for a longer period and current account need not be opened in these case. - 61 -

Discounting bills:-

This is type of financial accommodation made between the banker and the customer. According to this is to the banker discounts the trade bills of exchange of a shorter period say 60 gays to 90 days and credit the customers account with the proceeds. Supposing a customer has a bill of exchange accepted by the person payable to him for Rs.2000 and the term of the bill being 3 months. The customer on receipt of B/R approaches his banker and gets the proceeds at discounted value. If a banker discounts @ 20% p.a. the banker pays Rs.1900 discount amount being Rs. 100 the amount of Rs. 2000 shall be paid on maturity of the bill either by acceptor or when discounted by him by the customer who has discounted the bill.

SECURED & UNSECURED ADVANCES:The bank advances are classified in to two categories. Secured loans Unsecured loan

Secured loans:Secured loans are those, which have a full banking of some security or the other. This is the first classification of advances and reads loans considered good in respect of which the banks is fully secured, loan on mortgage, loan against deposit of little deeds etc. are considered to be secured loans.

Unsecured loans:Advance against guarantees may also be considered as lean loan. Unsecured loans are those not covered by any security of the debtor himself and security of one or more persons, even the bills discounted are considered to be a clean loan.

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TYPE OF LOAN
1. Mortgage loan

2. Vehicle loan 3. 4. 5. 6. 7. 8. 9. Cash credit loan Overdraft against security Machinery loan Loan against F.D. Gold loan against property Self employed loan NSC/KVP loan

10. Term loan 11. Staff loan 12. Consumer loan

Mortgage loan:This loan is based on installment. The first, mortgage by way of deposits of immovable properties and hypothecations of movable properties. After the creation of mortgage, ANSB bank gives a loan on this type of mortgage. Bank sanctions loan up to 65% of value of the mortgaged property. Whenever any installment is not paid regularly, bank sends notice for recovery of the dues. This loan is repayable within 3 years.

Particulars Mortgage

Margin 35%

Interest rate 14%

Rebate 1%

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2) Vehicle loan:The ANSB bank provides loan for purchasing various types of vehicle. Generally loan of vehicle is completed within the 3 years and sometimes upto 5 years in the case of four wheelers, fixed with monthly installment.

particular vehicle loan

Interest rate 13%

Margin 25%

Rebate 1%

In vehicle loan, for four-wheeler, margin to be provided is 20% - 64 -

Security:Bank provides loan against equitable mortgages & against hypothecation.

Documents: All basic documents Two photos of loan applicant A Xerox copy of rationing card, light bill, telephone bill, driving license, housing tax bill. A copy of estimation cost of vehicle of authorized dealer. Income proof & evidence Two guarantors for loan applicant. A photocopy of the property files with city survey index copy.

4) Cash credit loan:Such type of loan is provided by the ANSB on the three main bases. Loan against stock and book debts. Loan against property. Loan against personal guarantees.

Under these cash credit , bank provides loan by taking personal guarantee, property & stock under such method rate of interest is 13% for up to 5 laces & 12% for above 5 laces. particular Cash credit loan margin Interest rate Up to 5 lacks 13% Above 5lacks 12%
Documents:-

Rebate -

All basic documents. Firm`s last three years balance sheet & income tax return copy. - 65 -

Evidence of other income of proprietor or partner. Director's signature. To include certificate of company registration and articles of association if applicant is private limited company. Statement of last six month of firm`s account in the bank or other banks.

5) Overdraft against security

When customer requires temporary accommodation, he may be allowed to overdraw his current account usually against collateral securities & pay interest on the amount actually used by him the bank provides those facilities because it helps in any contingency situation & to solve other problem which related to short term capital.

particular overdraft

margin -

Interest rate Below 2 lacks 13% Above 5lacks 14%

Rebate -

6) Machinery loan:Generally loan for purchasing of machinery is provided to different industry to expand their business. The ANSB provides loan or purchasing various types of machinery. Banks provides loan schemes according to machinery. particular machinery loan margin 20% to 30% Interest rate Up to 2 lacks 13% Above 2 lacks 14% Rebate 1%

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Documents:-

All basic documents. Evidence of other income of proprietor or partner Statement of last six month of firms account in the bank or other banks. Director's signature Machinery list and Xerox of bills Invoice of purchasing new machinery Firms last three years balance sheet and income tax return copy.

7) Loan against fixed deposit:-

The ANSB gives the loan against its own fixed deposits. The interest rate on those loan are 2% more than the interest which is payable on such fixed deposits. But if the loan is needed for third party,(i.e.) the party does not have a ix deposit on his name and want loan so the rate of interest rate on those person are 2.5% over and above the interest rate on such fixed deposit. The bank gives up to 85% loan on the face value of fixed deposit. The time period of such loan is equal to the maturity date of the fixed deposit or earlier.

particular Loan against F.D.

margin 15%

Interest rate 2% over deposit receipt

Rebate -

Documents:-

All basic documents. Fixed deposit certificate of borrower.

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8) GOLD LOAN:

With the Gold Loan of ANSB Ltd., you can get an instant loan against your gold jewelry and ornament. The procedure is simple, documentation is a minimal and approval is quick. Auction. Feature & Benefits: Borrow up to Rs. 50000 & up to 80% of the value of any purpose depending on your requirements. Flexible repayment options, ranging from 26 months. Get highest loan amount on your gold jewelry Repay the loan at maturity. One of the lowest interest rates is 13.5%. Hassle free & quick loan processing. 1-hour loan approval. If customers are not able to repay the loan at maturity, auction of gold by bank at market value and amount deposited against loan.

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9) Self employed loan:The loan is for the various self employed people like doctors, engineers, and chartered accountants and advocates etc. This is provided for starting their practices as well as expansion of their business. The bank provides loan up to 50% to 70% and total installments within 24 to 36 months inclusive of interest and 1% rebate is given to it. Loans from Rs. 2 lacks onwards depending on your needs. Borrow up to 60% of market value of the property. Flexibility to choose between an EMI based loan or and Overdraft. We also offer you overdraft against your self-occupied residential or commercial property and you save money by paying interest only on the amount utilized. High tenure loans for case of repayment. Attractive interest rate. Simple and speedy processing. Specially designed products for self-employed. 10) Loan against government security:ANSB gives loan against government security such as national saving certificate, kishan vikas patra etc. Before making an advance on the security of national saving certificate and kishan vikas patra, the bank takes an application in the prescribed form from the borrower in whose name the certificate stand. These certificates is being sent to the concerned post office or the issuing authority for transfer to the lending banks name and the banker grants the advance only after marking the certificate with the lien in the name of the bank. ANSB provides the staff loan in different categories for its staff inclusive of purchase old or new house at very normal rate of interest. This bank normally give following types of staff loan. particular Loan against margin 25% Interest rate 13% Rebate -

government security

Documents:-

All basic documents NSC/KVP certificate - 69 -

Security:Certificate of NSC (national saving certificate) KVP (kishan vikas patra)

11) Term loan:Term loan is loan being provided to business people. ANSB provides different types of short term and long term loans. It charges 13% up to 2 lacks. For this loan an applicant should have a minimum two guarantors and mortgage. particular term loan margin Interest rate Up to 2 lacks 13% Above 2 lacks 14% Rebate 1%

Documents: All basic documents. Xerox of rationing card of proprietor as well as two guarantors.

Light bill/telephone bill, Xerox of applicant as well as two guarantors. Housing tax bill Xerox of applicant and one photocopy of guarantor. Evidence of shareholders.

Other documents:Income proof for loan applicant as well as two guarantors. Directors signature is required for recommendation Quotation of purchasing new machinery Duplicate copy of city survey Photography of property file is submitted to bank Last three year firms statement and income tax return copy.

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12) Staff loan:-

ANSB provides the staff loan in different categories for its staff inclusive of purchase old or new house at very normal rate of interest. This bank normally give following types of staff loan. particular Festival advance margin Interest rate 0% 6% Rebate -

Staff vehicle loan and surety loan Staff housing loan -

7%

Documents:-

One photocopies of applicant as well as two guarantors the work in the bank. Submit the application form with salary slip. Personnel information of applicant as well as two guarantors.

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13) Consumer loan:ANSB is providing consumer loan to their customer and general public. This loan is provided for getting the gas pipeline connection at the home.

particular Consumer Loan


Documents:-

margin 25%

Interest rate 14%

Rebate 1%

Gujarat gas connections quotation. Xerox light bill.

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PROCEDURE OF LOAN
PROCEDURE OF LOAN I. II. III. IV. V. VI. VII. Submission of application Primary assessment Branch head recommendation Final assessment by various level of bank Loan committee recommendations Documentations of loan applications Disbursement of loan

The main step is the submission of the duty filled form or the loan application and it is the choice customer that which type of application he wants to avail depending upon the needs. Ex. in the case of vehicle loan, down payment and the fees also required to be paid. Now the primary assessment is to be done. Here the financial details of the application. Ex. Pan number etc. the income proof is checked with the salary slip, if attached, P&L a/c, balance sheet & I.T. Return copies. After primary assessment one come to know about the details of the application, his genuineness, his repayment capacity and the purpose for loan etc. The appraisal is moving one step ahead that is to analyse the applicants eligibility as per the norms provided by considering his gross income after deducting his liabilities his actual repayment capacity is checked as per norms. After referring the application from and appraisal branch head put his recommendation whether to accept the application or not and send it to the head office. At Head office the final assessment is to be done and decision is taken to sanction or reject the application reply is forwarded to the particular branch from where the application has been received. - 73 -

The branches have the power to take the major decision on the sanctioning of the loan. After the full completion the disbursement of the loan in the hands of the branch office. If the application is accepted then the other formalities are completed. Ex. The submission of the other necessary documents, payments of the other charges, payment of the margin money, postdated cheques are also being taken.
Points to be noted in loan process:-

Bank gives a permission to branch only to give Loan against FD If the amount up to 5, 00,000 then it is necessary to have signature of executive & director general manager. If the amount above 5, 00,000 then it necessary to have signature of executive & director and General manager. In mortgage loan up to 1, 00,000 then it is necessary have signature of executive & director and general manager.

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PROGRESS REPORT
YEAR SHARE CAPITAL 2305 2564 2827 7183 7613 9306 11558 12445 14514 18549 22789 28926 33557 RESERVED & OTHER FUNDS 17535 20052 20800 23768 29655 33602 39499 42343 53013 60864 74806 79039 84661 DEPOSITS ADVANCES WORKING PROFIT CAPITAL 77625 92692 110616 133294 169186 187354 244918 288593 307562 357863 476280 536645 725311 56871 54644 63837 109346 123335 126490 152623 194468 221460 254922 319386 405937 458156 108728 126287 146574 176431 221816 245824 310658 326734 387274 451969 583196 671149 854511 3208 2061 2467 3700 4500 5100 5511 5557 5627 7966 13271 13465 15111

1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

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Trend Analysis Plot for DEPOSITS


Quadratic Trend Model Yt = 109652 - 15025*t + 4456*t**2

800000 700000 600000

Variable Actual Fits A ccuracy Measures MAPE 9 MAD 21989 MSD 733561008

DEPOSITS

500000 400000 300000 200000 100000 0 1 2 3 4 5 6 7 8 Index 9 10 11 12 13

Analysis & Interpretation: Figure represents an excel scatter plot of the average deposit length over 13 year period in the excel plot. The trend line has been fitted through the points observe the general upward trend of the data. We conclude that the actual & fitted data gone throughout in upward movement.

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Trend Analysis Plot for ADVANCES_1


Quadratic Trend Model Yt = 66702 - 6708*t + 2790*t**2

500000 400000

Variable Actual Fits A ccuracy Measures MAPE 8 MAD 11287 MSD 186690902

ADVANCES_1

300000

200000 100000

0 1 2 3 4 5 6 7 8 Index 9 10 11 12 13

Analysis & Interpretation: Figure represents an excel scatter plot of the average advances length over 13 year period in the excel plot. The trend line has been fitted through the points observe the general upward trend of the data. We conclude that the actual & fitted data gone throughout in upward movement.

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Trend Analysis Plot for PROFIT


Quadratic Trend Model Yt = 3207 - 641*t + 123.2*t**2

16000 14000 12000

Variable Actual Fits Accuracy Measures MAPE 61 MAD 1001 MSD 1513206

PROFIT

10000 8000 6000 4000 2000 0 1 2 3 4 5 6 7 8 Index 9 10 11 12 13

Analysis & Interpretation: Figure represents an excel scatter plot of the average profit length over 13 year period in the excel plot. The trend line has been fitted through the points observe the general fluctuate regular trend of the data. We conclude that the actual & fitted data gone throughout in upward movement.

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PROGRESS CHART OF DEPOSIT & ADVANCES

Interpretation Above graph indicates that, in the year of 2008-09 total advances of the bank are 405937 where as deposits 536645. It increases in the year 2009-10 up to 458156&725311 respectively. It represents that year by year in both the term deposits & advances were continuous raised.
PROFIT STATEMENT

PROFIT YEAR 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 3208 2061 2467 3700 4500 5100 5511 5557 5627 7966 13271 13465 15111 - 79 -

Interpretation As per above graph it indicates that banks profit is in first three year continuously fallen. After 2001-02 to 2005-06 banks profit was stable in nature. Slightly change in profit. It is said that after 2001-02 to 2009-10 banks profit slope was upward. On the basis of last five years profit shows that bank s performance was comparatively good in co-operative sector.

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PROGRESS CHART OF SHARE CAPITAL & PROFIT

Interpretation: Out of this profit, first of all banks raises some funds to strengthen its financial position, then after the bank gives dividend to their members from the remaining profit. It is not compulsory for the bank to pay dividend every year. Bank gives regular dividend to their shareholders.

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FINDINGS &SUGGESTION
It is not cleared that one-person take surety in how many loans application? So that bank has to make these types of rules. It can be not down in application form. Bank has to invite each and every loan applicant to take once presence in bank. Bank has to keep a P.R.O. counter, which gives proper information related with various loans schemes. So that settlement of loan application can be done easily or speedily. It is necessary for bank to change or improve its working procedure for sanctioning of loans because loan procedure of bank is too tough. For acceptance of loan application to keep separate "Loan Department" and at clerk level all the papers of loan can be prepared then after officer of the loan dept. can scrutinize it and then with recommendation letter of manager credit & personnel/ C.E.O. (Chief Executive Officer) Sir's. It can be presented in "Loan Committee". So that loan procedures can be completed speedily or easily and loans and advances of the bank can be increases. Bank has tries to take varieties in loan schemes. So that loans and advances of the bank can be increases. Bank has to provide loans related to loan applicant's own requirements or objective. Acceptance of loan application by bank, it can be inward before it can be access by recovery dept. It can be only possible when loan dept. and recovery dept. can be connected. When to give loans to other bank's customer's then to request to customer's that they open its current or saving account Bank gives power to branch manager of sanctioning upto Rs. 25,000/- on N.S.C. & bank's FD. In this, limit of loan amount does not take and give complete power of sanction of these types of loan.

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CONCLUSION
During, my training I found that Amreli nagrik sahkari bank is reputed in just few year & still moving ahead on the path of progress. ANSBS future is bright on the basis of current situation of bank.

During, my overall period of study in bank, their staff is very responsive their work. In a co-operative sector ANSB is one of the most leading bank in district as well as state level also. I conclude that banks environment is very good for customer and also has sound, smooth & efficient management system. Banks schedule is 12 hours it indicates that banks profitability & sales turnover are in upward movement.

I also conclude that in technically bank is not providing ATM facility because it is limitations but co-operative sectors management is not much wide. This area s people are not much aware about the system that how it follows but bank is achieving their customers reliability.

I wish that a bank is achieving millions of success in future.

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BIBLIOGRAPHY 1)Reference books


Education. Aswthappa.K, Human Resource & Personnel Management, forth edition, The Mc Graw Hill companies.

Dr. Maheshwari S N, Financial management principle &practicestenth edition, Sultan Chand &educational publisher New Delhi. Kotler Philip, Marketing Management, eleventh edition, Pearson

2) Banks documents Document & Broacher of the Bank. Annual Report of the Bank of last five Year.

WEBSITE: www.Google.co.in

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