Marketing & Financial J&K Bank (New)

INTRODUCTION
The J&K Bank Ltd. incorporated on October 1st, 1938 commenced business on July 4th, 1939. From a small beginning the bank has grown to become a giant with a network of 441 branches spread over the length and breadth of the country. A significant contributing factor for this fast growth is the solid founding principles which are dedicated to the cause of transforming the Bank not only as a financial heart but also the social heart of the community. The J & K Bank is the first state owned bank of the country and 53% of equity is held by the Govt. of J & K .The bank has a consistent track record of growth and profitability . It has a unique distinction of being banker to the J & K State Govt. and has has also been appointed by RBI as its agency in J & K , responsible for carrying general banking business of the Central Govt. and collection of Taxes pertaining to the Central Board of Direct Taxes. The landmark achievements in the diversification of the banks including the sponsoring of two Regional Rural Banks viz., Kamraz Rural Bank and Jammu Rural Bank; permission for dealing in foreign Exchange, holding the Lead bank responsibilities in eight of the fourteen districts in J & K ,convenorship of State Level Bankers Committee (SLBC) and State Level Export Promotion Committee( SLEPC ). The bank is the only one non-nationalized sector, having been entrusted with such assignments and has come up to the expectations of RBI and other agencies, like CBDT. The bank has been swift in responding to the need for technology adaptation in meeting its commitment to the customers and offers 1
the best of services and a wide range of products. The bank is investing in a big way in information technology ; Installation of ATMs at Residency Road , Srinagar and Gandhi Nagar Trikuta Nagar Jammu Ahamadabad and Mera Road Mumbai and at other important centres; introduction of EFT and E-Mail services substantiate this fact. The number of computerised branches of the bank has risen to 246 as on March 2001, which accounts for 80 per cent of total bank business. The tele-banking facilities are available at 23 branches with such services being extended to 65 branches in the near future. The Anywhere banking facility available at 23 branches shall be raised to 65 soon. The Bank is in the process of connecting its branches through VSAT and lease lines from the existing 23 to 85. The number of ATMs which is most convenient system of extending 24 hour banking facility is 23. ATMs at six locations including B/O Ansal Plaza, Delhi, Corporate Headquarters, Srinagar, B/O Trikuta Nagar, Jammu, B/O Government Medical College, Srinagar, B/O SSI Lal Chowk, Srinagar, Kashmir, B/O SKIMS, Srinagar and B/O Ahmedabad, are having IST Switch connectivity. Once the Data centre is completed our bank shall be the first to introduce the Internet Banking in the J&K State. A new concept of customer facility Touch Screen kiosks shall be installed at 65 branches of the bank.
J K bank is one of the few banks in the country which has been able to show exemplary performance in adjusting to the rigorous prudential norms that came into force during 1992-93 and has been able to achieve CAPITAL ADEQUACY RATIO of above 17.44 per cent a s on 31st March, 2001, which is far ahead of RBI stipulation and is one of the highest in the industry today.
OBJECTIVE OF THE STUDY
COMPARITIVE ANALYSIS OF J&K BANK WITH OTHER BANKS STUDY ABOUT THE WORKING OF J&K BANK AND ITS DIFFERENT PRODUCT.
HISTORICAL BACK GROUND

Entire banking in the state of Jammu and Kashmir was performed by traditional lenders till 1920 -30 and that too at exhoribant interest rates .At the same time some banks functioned at a very limited scale, such as Punjab National Bank Limited ,Grindlay's Bank and Imperial Bank of India . The role of these banks was reduced to the acceptance of deposits as they could not grant loans and advances to the people of the state owing to the statutory limitations .Under this scenario banks could not ameliorate the financial and social position of the people of the state . To over come this critical situation the then Maharaja of the state conceived an idea of setting up of a state bank in the state . After a prolonged exercise and deliberations the assignment for establishment of " The Jammu and Kashmir Bank Limited " was given to the late Sir Sorabji N Pochkhanwala, the then Managing Director of the Central Bank of India. Mr.Pochkhawala formulated a scheme on 24-09-1930, suggesting establishment of a semi state Bank with participation in capital by state and the public under the control of state Government. Thus the bank was formally incorporated on the Ist of October ,1938 and commenced business from 4th of July 1939 at its Registered Office Residency Road Srinagar , Kashmir. The Jammu & Kashmir Bank Limited has been the first of its nature and composition as a State owned bank in the country .The state Govt. besides contributing half of the issued capital also appointed it as its bankers for general banking and treasury business .In its formative years , the bank had to encounter several serious 5
problems , particularly around the time of independence, when out of its total of ten branches two branches of Muzaffar-abad and Mirpur fell to the other side of the line of control(now Pak Administered Kashmir) along with cash and other assets ;in 1947. However the State Govt. came to its rescue with the assistance of Rs.6.00 Lacs to meet the claims however the bank stead fastily over came its difficulties and kept growing . Following the extension of Central laws to the state of Jammu & Kashmir, the bank was defined as a govt. company as per the provisions of Indian companies act 1956 .The bank had its first full time chairman in 1971, following social Central measures in banks .The year 1971 was a turning point for the bank on conferment of scheduled bank status and witnessed remarkable progress in all the vital fields of operations .The bank was declared as "A" Class Bank by Reserve Bank of India in 1976 .In recognition of dominant role and exaulted performance , Reserve bank of India appointed the bank as its agent for performing the general banking business of the Central Govt. especially in maintaining currency chests and collection of taxes. The landmark achievements of the bank in some important fields of operation since its inception to March 1999 are detailed below :
SHARE CAPITAL & RESERVES

The bank was incorporated with the authorised capital of Rs.2.00 Lacs shares of Rs.25/- each amounting to Rs.50.00 Lacs.The first issue comprised 80,000 shares amounting to Rs.20.00 Lacs .A total number of 62716 shares of the value of Rs.15,67,900/ were authorised and Rs.7.66 Lacs paid up as on 30.06.1940 .The authorised capital was subsequently reduced to 1.20 lakh shares amounting to Rs.30.00 Lacs in 1958 and latter enhanced to 40.00 Lacs in 1992 and 80.00 Lacs in 1993 amounting to Rs.10.00 Crores and Rs.20.00 Crores respectively.The issue capital of 28.00 lakh shares amounting to 7.00 Crores stands subscribed and paid up as on March 31,1997 Rs.28/- per share .Thus where as the paid up capital would be increased to Rs. 48.50 Crores ,simultaneously the bank be able to earn the share premium of Rs.86.80 Crores . The bank has paid special attention to the vital aspect since its inception .The first reserves were created by the bank when amount of Rs.10,000 / were transferred to the account as on 30.06.1941.The reserves were created not only to meet the statutory requirements but also for bad and doubtful debts and for meeting other contingencies.The free reserves which were of the order of less than one lakh in 1944 and Rs.7.00 lakh in 1966 stood at Rs.42.50 Lacs in 1975 and less than one Crore in 1979 . In a span of just over 16 years the reserves have grown ten thousand times and crossed Rs.100 Crores mark in 1995, excluding those held for the risk weighted assets .The Capital & reseves of the Bank witnessed a remarkable growth during the year 2000-2001. It increased to Rs.700 crores as on March 31-3-2001 as against Rs.528 crores as on 31-3-2000 registering a growth of 32.44%. The 7
Statutory and other Reserves increased to Rs.651.41 crores from 480.15 crores of 31-3-2000. The Bank came out with unsecured non-convertible redeemable, subordinated tier-II Bond issue of Rs.75 crores in December 2000. The isue received an overwhelming response and the Bank mobilised Rs.87 crores against the size of Rs.75 crores at 11.75% p.a. with a tenure of 63 months.
DEPOSITS
The public has reposed its confidence in the standing of the bank from its very inception and the same has been growing ever since that date; despite the shocks it received as a consequence of partition because of loss of two branches within eight years . In the first year of its operation the bank succeeded mobilizing deposits to the tune of Rs.14 Lacs after which there was no looking back .The deposits which stood at just over one Crores in 1949 and less than 100 Crores in 1978, grew with amazing pace within a span of 16 years .The growth of the deposits accelerated at an amazing pace for the decade 1980-1990, from Rs.191.67 Crores to Rs.1046.35 Crores. Barring few occasions ,the growth rate has been more than the national average ,doubling in 1991-1994 (in just four years) despite the slag economic trends in the state due to turmoil and difficult working conditions .It will be in order to reveal that when all nationalised banks closed down their offices in valley in 1990, the J & K bank alone braved against all odds and discharged its banking services to the public at great risks. Not only in deposits ,the bank discharged its duties under those difficult situations in all spheres and made inroads in multifarious levels in pattern of client base . The bank performed commendably during the year by registering the growth rate of 26.40% against the national average of 16.1%. The deposits of the bank stood at Rs.3658.14 Crores as on March 31st, 1997 against the Rs.2895.18 Crores as on 31.03.1996. The deposit base of the Bank touched new high at 11,168 crores at the end of financial year 2000-01. The average deposits per branch work out to Rs.30.15 crore against the previous year figure of
Rs.26.17 crore. The average deposit per employee stood at Rs. 172 lacs against Rs.150 lacs of the previous year.
CREDIT DISPENSATION
The J & K Bank Ltd. was established with a sole aim of improving the economic conditions of the people of the state as then existing banks could not fulfill such needs because of various limitations as stated earlier.On the very next day of opening a loan on Rs.1.20 Lacs was granted to the borrower. This may bee a laughable amount today, but it carried a slogan that time .The people of the state regard J & K bank as their own bank owing to its local orientation and characteristics and bank in turn has been fulfilling there aspirations by spear heading the credit dispensation not only under the normal lending schemes but also through the central and state Govt. sponsored schemes .The bank has been instrumental in the economic upliftment of the people of the state which other wise would have been difficult in view of its backwardness ,ographical conditions and above all conservative attitude of other banks. Bank has been playing its role devotedly towards the economic development not only on domestic front but also for the foreign exchange earnings .The bank disbursed advances to the tune of Rs.5.76Lacs in first year ,while as the one Crores mark was achieved after 25 years only .There after the credit disbursals gained momentum .The amount of advances stood at 131 Crores in 1980 recorded 10 fold increase and stood at Rs.1208 Crores at 31.03.1995. During the last two years the advances registered an emphatic growth and were recorded at Rs.4763 Crores as on 31.03.2001.J K bank is one of the few banks , which has been able
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to show exemplary performance in adjusting to the rigorous prudential norms that came into force during 1992-93. The bank has not only enhanced the quantitative but also qualitative approval of the credit portfolio ,on some occasions the bank's credit deposit ratio and priority sector lending has exceeded the desired or prescribed limits .Bank has not only fulfilled its commitments towards the Govt. of J & K but also has come to its rescue in the hours of financial crises . The lendings to the state Govt. has been a constant phenomenon for the decades now and infact upsets various ratios related to credit on some occasions . The bank has witnessed a steady growth in the borrower client base ,which is spread to more than one Lacs accounts presently. The growth in the credit portfolio is commendable particularly in the state with vicious law and order problems because of turmoil through which the state has passed .
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INVESTMENTS
Right from the beginning ,the liquidity ,safety and profitability of the funds has remained and continues to be the focus of bank's policies. During the first few years, the surplus funds were kept either in current or fixed deposit accounts with other banks .It was in the year 1944 when an amount of ten Lacs was invested in Govt. securities .There after the growth of investment portfolio has been phenomenal one .The investment holdings of the bank have been far beyond the statutory requirements .The total investments in Govt. and other approved securities , bonds debentures was to the tune of Rs.792 Crores as on 31.03.1995. During the last few years bank's investments portfolio grew at amazing pace as investments of the bank stood at Rs.5425 Crores. In the falling interest rate scenario, when 10 year Fixed Income Money Market & Derivatives Association of India (FIMMDA) Bond Yield Curve has come down from 10.85% to 10.34% during the year 2000-2001 the bank has recorded an average yield of 13.49%. The Investment portfolio is bifurcated into categories of "held till maturity" available for sale and "held for trading" as per RBI guidelines.
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PROFITABILITY
Except for the first year of business , when bank suffered a loss of Rs.0.07 Lacs as on 30.06.1941 , the bank has a consistent track record of growth and profitability .In just the second year of commencement of business , it recorded an impressive profit of Rs.0.48 Lacs and wiped out the losses of previous year.With excellent fund management ,the profits of the bank jumped from 177 Lacs in 1990 to 1251 Lacs in March in 1994 after providing for all the statutory and mendgtory provisions . The Bank recorded a net profit of Rs.168 crore for the financial year 2000-01 registering an increase of 39.44% over the last year figure of Rs.120.17 crores. The Bank's total income at Rs.1157.28 crores for 2000-01 recorded a growth of 16.93% over the previous year figure of Rs.989.72 crores. The income per branch and per employee has increased to Rs.313 lacs and Rs.18 lacs respectively from the previous figure of Rs.275 lacs and rs.15.76 lacs.
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BOARD OF DIRECTORS 1. Mr. M. Y. Khan Chairman
2. Mr. J. A. Khan IAS Chairman, J&K Special Tribunal, J&K Government, Jammu/Srinagar
3. Mr. M. S. Pandit IAS Financial Commissioner (Finance & Agriculture Deptts.) J&K Government, Jammu/Srinagar
4. Mr. J. B. Bhoria Regional Director, RBI Rail Head Complex, Jammu
5. Dr. A. M. Khusro B-680, First Floor, Sushant Lok, Phase - I Gurgaon, Haryana
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6. Mr. G. P. Gupta Flat No. 101, Kaveri, "B" Wing Neelakanth Valley, 7th Road Rajawadi Ghatkopar (East), Mumbai
7. Mr. Vipin Malik S-370, Greater Kailash Part II, New Delhi
8. Mr. A.M. Mattoo C/O Matto Mills, Nalabal Nowshera, Srinagar 9.. Dr. G.Q. Allaqaband Balgarden, Srinagar
10.. Mr. D. S. Kandhari A 1/51, Azad Apartments, Aurbhindo Marg, New Delhi
11. Mr. Mohd. Yasin Mir
12. Mr. Bansi Lal Dogra
Mr. Parvez Ahmad Secretary to Board
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FINANCIAL ANALYSIS
THE Jammu and Kashmir Bank Ltd (J&K Bank) has recorded a net profit of Rs 236.18 crore for the nine-month ended December 31, 2002, a 35 per cent jump over the net of Rs 174.79 crore during the corresponding period in the previous fiscal. The operating profit for the period rose by 39 per cent to Rs 447.29 crore against Rs 321.78 crore. The capital adequacy ratio stands at 18.82 per cent and the capital and reserves add up to Rs 528 crore. The bank has net non-performing assets (NPAs) of 3.22 per cent.
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TYPES OF DEPOSITS
Customer Friendly & Value Added Schemes
RECURRING DEPOSIT SCHEME

Features: A Recurring Deposit Scheme can be opened with a minimum of Rs.50/- and above in multiples of Rs.5/-. This scheme enables the depositor to convert his/her regular monthly savings to a lump sum amount and earn higher rates of interest Loan Facility: Loan can be granted on the security of Recurring Deposit Account up to a maximum of 90 per cent of the amount to the credit of the depositor.
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MONTHLY YIELD DEPOSIT SCHEME
Features:
The Monthly Yield Deposit Scheme has been introduced for the benefit of people, who desire to ensure a steady income every month for themselves. This scheme is best suited for housewives with budgeted household expenses, retirees and pensioners. Under this scheme, an amount of Rs.1000/- or its multiples can be deposited for any period ranging from 1 to 10 years and thereon will be paid every month. If desired, the interest amount can also be credited to a Savings Bank or Recurring Deposit account, which would further assure return of a sizeable amount, after a specified period.
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JANAPRIYA JAMMA YOJNA SCHEME
Features:
This scheme is aimed to cater the requirements of the depositors who keep their deposits for longer duration and require a portion of the deposit to meet unforeseen emergencies. Under this scheme, depositors are allowed to withdraw 20 per cent of the deposit one time after, and at a frequency of six months if desired. A minimum deposit of Rs.5,000/- and above, in multiples of Rs.1,00/- is accepted for a period of three years and above.
Who Can Invest:

All persons who are eligible to open Savings and term deposit Accounts, with usual terms and conditions applicable to the term deposit.
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GOLDEN DEPOSIT SCHEME

Features: This scheme enables a depositor to earn compound interest on 6th months deposit. The minimum amount of deposit will be Rs.1,000/- and above in multiples of Rs.100/-. The rate of interest applicable will be compounded
quarterly.
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AWAMI BACHAT CERTIFICATE SCHEME

Features: The scheme has been devised to suit all sections of the society particularly the students. Like the Cash Certificate Scheme, the deposits under this scheme earn a very high yield for the depositor at the expiry of the stipulated period.
Interest Calculations:
The interest payable on the deposit under this scheme is compunded on quarterly basis. Who Can Open Account: The account may be opened in the names of: Individuals - Single Accounts Two or more individuals - Joint Accounts Sole propriety concerns Illiterate persons. Blind persons Minors through guardians Limited Companies, associations, Clubs, Societies and Trusts.
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DEPOSITORS PENSION SCHEME
Features:
The scheme has been specially devised for persons who do not enjoy pension benefits either from their present employers or their present business. Under this scheme, a depositor can earn a regular income by way of pension every month and also a fund to fall back upon in case of urgent need. Under this scheme, a depositor can deposit any sum in multiples of Rs.50/- for periods of 84, 105 or 111 months and from the commencement of 86th, 107th and 113the month, the depositor will receive a regular monthly pension.
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MULTIBENEFIT SAVINGS DEPOSIT SCHEME Features: This scheme has been specially devised to cater to the needs of the people having fluctuating incomes. The scheme facilitates a depositor to deposit variable amounts of installments at his FREE WILL without any binding on depositing the fixed installments. The Depositor has to choose a core monthly installment which will be Rs.50/- or above in multiples of Rs.10/with a maximum of Rs.10,000/-. Who can Invest: A person in his/ her own name. By more than one person in their joint names. By a guardian on behalf of a minor.
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SAVINGS BANK DEPOSIT SCHEME
Features: A convenient, easy to operate that helps a depositor to save both time and money. This schemes suits persons who do not have regular income. Any deposit and any time withdrawal is the main feature of this scheme. Savings bank account can be opened with a minimum initial deposit of Rs.50/- to Rs.500/Who Can Open This Account: A person in his/her name. More than one person in their joint names. Minor through guardian or himself if above 14 years of age. Illiterate persons. Blind persons. Associations, clubs, Societies, Trusts, etc
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Term Deposit Schemes SUPER EARNER DEPOSIT SCHEME 1. The deposit under the scheme shall be accepted for amounts of Rs.1000/- and above in multiples of Rs.100 for periods of 1 year and above upto 10 years. 2. The rate of inetrest on the deposit shall be at floating rate which shall be announced by the bank from time to time and normally reset/reviewed half yearly on the basis of market conditions. Every time rate of interest is re-set it shall apply to the deposit from the date of change notified by the bank for the residual period of the deposit till its maturity or next review whichever is earlier. 3. The interest shall be calculated quarterly on simple interest basis and shall be payable to the depositor quarterly. 4. Deposits under the scheme cab ne withdrawn prematurely. However, the interest rate applicable in the event of premature payment shall be minimum of the two rates viz. fixed or floating applicable to the period the deposit has actually remained with the bank less penalty as applicable to fixed rate term deposits. Where the premature payment is sought before expiry of one year (minimum prescribed under the scheme) the fixed rate of interest applicable to the period of deposit less by penalty shall be applicable. 4. Loan facility against the deposit shall be admissible as in the case of fixed rate term deposits and shall be governed by the same rulesas applicable to the latter.
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SUPER REINVESTMENT DEPOSIT SCHEME i. The scheme will work exactly on the analogy of 'Super Earner Deposit Scheme' with the only difference that under this scheme interest shall be compounded quarterly and payable with principle on maturity. ii. The other features of the scheme will be the same as that of Super Earner Deposit Scheme.
Interest Rate Structure Period Rate of Interest
1 year to less than 2 years 2 years to less than 3 years 3 years and above
7.50% 8.00% 8.33%
Note The deposits of senior citizens under the scheme shall attract concessional rates of interest available under fixed rate deposit scheme. The differential rate applicable to wholesale single deposit of Rs.15.00 lacs and above but less than Rs.5.00 crores for a period of 1 year under fixed rate interest scheme shall mutatis mutandi apply to such deposits under floating deposit scheme also.
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MILLENNIUM DEPOSIT SCHEME

MILLENNIUM DEPOSIT SCHEME OBJECTIVE
The scheme is aimed at to enable the depositor to draw a part of the deposit placed with the bank for a fixed period, in the event of an exigency.
SALIENT FEATURES
Under the scheme a deposit of Rs.1000/- and above but in the multiples of Rs.500/- can be accepted by the bank. The bank shall hold deposit in the units of Rs.500/- each.
TERM OF DEPOSIT
The deposit can be accepted for a period of six months to ten years.
RATE OF INTEREST
As applicable from time to time.
WITHDRAWAL OF UNITS DURING THE TERM OF THE DEPOSIT Under the scheme the depositor shall be at liberty to withdraw any number of units during the currency of the deposit but not before completion of 45 days. However, balance in the account in no case should fall below the minimum prescribed limit of Rs.1000/-. The value of number of units withdrawn during the term of deposit shall attract the rate of interest applicable for the period it has
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actually remained with the bank with quarterly rests having componuding effect. PREMATURE PAYMENT At the discretion of the bank, depositor can seek withdrawal of the entire amount of the deposit in one lump or in units before the completion of the term. In such case the deposit shall attract interest rate applicable for the period it has remained with the bank less by 0.25 per cent for deposit up to Rs.5.00 lac and 0.50 per cent above Rs.5.00 lac. However, this is subject to guidelines issued by the bank from time to time. LOAN FACILITY The depositor can avail loan facility against the value outstanding units and the accrued interest with a minimum margin of 10 per cent. The interest chargeable in such loan accont is 2 per cent above the contracted rate on the deposit. However, these are subject to norms as prescribed by bank from time to time.
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CASH CERTIFICATE SCHEME Features: It is a fixed deposit scheme. But the only difference with the traditional fixed deposit scheme is that the minimum period of deposit is one year and the amount to be deposited should be in multiples of Rs.100/=. Interest Calculations: The interest on the deposit is compounded quarterly, which ensures more and more returns returns on the deposit payable on maturity. Loan Facility:
Loan can be availed against the deposit upto 90 per cent of the amount deposited with the bank under this scheme.
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GIFT CHEQUE SCHEME Gift Cheques are available in the denominations of Rs.101, Rs.201, Rs.501, Rs.1001 and Rs.5001 in MICR format. The beneficiary of the Gift Cheque can invest the amount of the cheque in any of the Term Deposit schemes of the bank. In that case, as a value addition, the date of issue of Gift Cheque could be given as effective date of the deposit under the Term Deposit Scheme to entitle the beneficiary to earn interest from the date of purchase of Gift Cheque. At the formal request of the original purchaser, Gift Cheque/s can be paid by cancellation at the issuing branch against surrender of the original one after taking normal procedures. VALIDITY The Gift Cheque shall be valid for a period of six months only from the date of its issue. However, it can be revalidated for a further period of 3 months to raise the total tenure to 9 months. PAYMENT Gift Cheque is payable at any branch and at par.
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FLEXI DEPOSIT SCHEME OBJECTIVE The Flexi Deposit Scheme (FDS) is designed to allow the depositor automatic access to obtain credit facility against the deposit account up to the 90 per cent of the Principal and interest accrued amount without making any separate requisition for the same and without execution of any documents. SALIENT FEATURES Under the scheme deposit of Rs.1000/- and above in multiples of Rs.100/- shall be accepted by the bank. The bank shall hold the deposit in the Re-investment plan. TERM OF DEPOSIT The deposit can be accepted for a period of six months to ten years. RATE OF INTEREST The amount invested in the scheme shall attract rate of interest prescribed by the bank on domestic term deposits from time to time. LOAN AGAINST DEPOSIT The scheme has built in mechanism to allow automatic loan drawls against the security of the deposit and interest accrued thereon without any additional documentation. the credit facility shall be called "Flexi Credit Facility A/C". The withdrawals in the "Flexi Credit Facility Account shall be permitted through Debit notes/letter of authority. 31
Interest rate of 2 peer cent above the deposit shall charged on Flexi Credit facility. The limits in the Flexi Credit Facility account shall be revised with each quarterly accruals of interest on the deposit. The depositor shall be entitled to raise the Flexi Credit facility at the issuing branch of the Flexi Deposit Receipt only
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FIXED DEPOSIT SCHEME It is a term deposit that pays interest at the end of each calender quarter. It is suited to the persons who wish to keep their invested money intact and require quarterly income to meet their requirements. It can be opened with a deposit of Rs.100/= and above for different maturities ranging from 7 days to 10 years. Who Can Open: A person in his/her name. More than one person in their joint names. Minor through guardian or himself if above 14 years of age.
Blind Persons. Associations, Clubs, Societies, Trusts etc. Loan Facility:

Loan can be availed against the Fixed Deposit up to 90 per cent of the amount deposited with the Bank.
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CHILDCARE DEPOSIT SCHEME
CHILDCARE DEPOSIT SCHEME

Main Attractions * The main attraction of the scheme is the accidental insurance cover, which will be now operational from the date of opening of account. Further, the sum assured is linked to the amount of monthly installment in the account in the following manner: Monthly Installment Rs. 100 - Rs. 400 Rs. 500 - Rs. 900 Rs. 1000 and above Sum Assured Rs. One Lac Rs. Two Lacs Rs. Three Lacs
The Depositor/Guardian/Parent maintaining one or more accounts under the scheme in one or more branches in his own name/name of the same or diffrent wards/minor children will be entitiled to the insurance benefits under each cover granted with each deposit. However, the amount of claim payable shall not exceed 60 months income policies. The attaining of age of majority by minor will not affect the benefits entitled to him or her under the insurance cover and insurer will be liable for all claims in respect of such accounts subject to a maximum of 60 months income of the depositor/parent/guardian as applicable under all policies. 34 of depositor/parent/guardian as applicable, under all
Target Group The target group will be the people who want to secure some amount for future needs of their child. It may be eduaction, marriage or any other foreseen expenditure. Although the scheme is primarily targeted for children through guardian, yet other categories of persons can also invest in the same. Payment Before Maturity In case any depositor desires payment before maturity it will be allowed but the penalty shall be 2% instead of 0.25% if the deposit has remained for less than 3 years with the bank but after 3 years deposit will be dealt as per the norms in vogue for other term deposits. Loan Against Deposit Loan facility can be provided after deposit entry into the 2nd phase, bank can allow loan not exceeding 90% of the amount accumulated at the time of first phase.
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LOANS
LOAN SCHEMES
Consumer Loans

Computer Washing Machine Color TV -Airconditioner and more...
CONSUMER DURABLES LOAN
For General Public

Salient Features:
a) Scale of Finance b) Maximum Rs.3000/= to Rs.40,000 per Article (More than One article/Durable)
Finance
Rs.75000/= subject to 12 times net monthly Salary. c) Eligibility of Rs.1800 . d) Security Primary Hypothecation of Article Financed . Employees of Govt. , Semi-Govt., Civic Bodies, Self
employed (with assured income) having minimum net monthly Salary /Income
Collateral Third party Guarantee of one person. e) Rate of Interest change) (subject Upto Rs.25000/= 12 % p.a to
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Over Rs.25000/= Over Rs.25000/= professionals /Engineers/ Accountants /
13 % p.a S.E for Doctors Chartered Architects /
Lawyer etc. 12.5 % p.a f) Repayment g) Margin 3-4 years depending on category of advance. 25 % (min.) of cost of article.
h)Approved Consumer Durables : ITEMS Max . Finance
Min.Net Salary / Income i) Computer ( P.C ) Rs.40,000/=Rs.5,000/= Rs.30,000/=
ii) Motor Cycle / Scooter / Air Conditioner Rs.5,000/= iii) Color TV / VCP / VCR / Generator/
Washing
Rs.15,000/=
Rs.3,500/= Machine (automatic) / Cooking range. iv) Refrigerator / Dish Antenna / Kerosene Rs.3,000/= Room Heater/ Washing machine (Semi Automatic) v) Vacuum cleaner Rs.5000/= Rs.1800/= Rs.7500/=
vi) Water Filter cum purifier / B&W TV / Tape Recorders / Geyser / Cooler.
Rs.3000/=Rs.1800/=
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Housing Loans Build your dream house with our friendly housing loans. Worried about your dream house! Rely on our Housing Loan Scheme to see an end to this worry and enjoy the comforts of your dream house
HOUSING LOANS Salient Features: a) Quantum of loan
i) For Construction /
Purchase
The maximum amount of loan to be sanctioned under the scheme would be 40 times the net monthly income/salary of the applicant and there would be no ceiling viz a viz.. the amount of loan. ii) For Renovation / Addition The maximum loan granted for carrying out repairs, additions, extensions, improvement, completion, renovation of existing house is Rs. 4 lacs (Subject to 20 times net monthly salary/income). Also as an incentive for small borrowers, the loans upto Rs. 1.5 Lacs granted for repairs/renovations of existing houses would now be secured by third party gurantee of 2 persons or LIC policies,
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Government securities, IVPs, NSCs, KVPs or such other security as is deemed appropriate by the sanctioning authority. However, negative lien would be stipulated over the existing house property for which the facility is granted and also have an irrevocable power of attorney executed by the borrower authorizing the bank to sell the house in case of default.
b) Eligibility i) Employees PSU's Ii) Reputed of Govt. , Semi-Govt. Dept., Civic Bodies,
with min. 5 years service. Businessmen with min. 5 years standing.
Iii) Professionals & Self employed like Doctors ,Engineers , CA's , Advocates , with min. 5 years standing.
c) Security Primary: constructed. Collateral : Third party Guarantee of one person, or of LIC Policies , pledge of Govt. securities etc. d) Rate of Interest (subject to change) Ranging from 10.50% p.a to 10.75% p.a Assignment Mortgage of the house Property to be Purchased /
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Duration of loan Floating Fixed 1 - 5 Years 9.25% 9.50% 6 - 10 Years 9.50% 9.75% 11 - 15 Years 10.00% 10.25% 16 - 20 Years 10.25% 10.50% The revised rate of interests are applicable to fresh
loans/disbursements only. Revised interest rates w.e.f. 15-01-2003
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e) Repayment i) For Construction of New House 20 years Including 9 moratorium in equal monthly installments. (Applicable ii) For to new / loans and 5 disbursements years Including only) 2 months months
addition
Renovation
moratorium in equal monthly Installments.
f) Margin i) For Construction/purchase 15% (Cost of Land inclusive ) . ii) For Renovation 25% .
g) Processing charges 0.25% of loan amount
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Personel Consumption Loans For General Public Salient Features: a) Quantum of Finance Rs.2 Lacs b) Eligibility Employees of Govt. , Semi-Govt.Undertakings, autonomous bodies, Public Sector undertakings c) Rate of Interest (subject to change) d) Repayment 36 equal monthly installments e) Maximum Ceiling 9 months gross salary 13%
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LOANS AGAINST MORTGAGE OF IMMOVABLE PROPERTY This scheme is for individuals/business enterprises/professionals and self emloyed as an ideal source of funds for expenditures of any nature. ELIGIBILITY CRITERIA:The scheme would provide finance to Individuals/Business
Enterprises having minimum net annual income of Rs.1.20 lacs per annum against mortgage of unencumbered immovable property situated in Metros/Urban/Semi-Urban Areas. Salaried Individuals must have put in a minimum confirmed service of 3 years.Business Enterprises,professionals and self employed must have a minimum standing of 3 years in the respective line of activity. PURPOSE:For meeting their business and/or any personal need/expenditure. INCOME CRITERIA:Minimum net income should be Rs.1.20 lacs. AMOUNT OF LOAN:20 times net monthly income or Rs.10 lacs whichever is lower.
MINIMUM LOAN AMOUNT:MAXIMUM LOAN AMOUNT:
Rs.2.00 lacs Rs.10.00 lacs.
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In case of Individual borrowers,the income of the spouse can be taken in to consideration for determining the loan amount.In such cases,the facility would be allowed in the joint names. MARGIN:- Nil. TYPE OF LOAN :Term loan. UPFRONT FEE/PROCESSING CHARGES:0.25% of the loan sanctioned would be recovered as processing charges. SECURITY:Registered/Equitable mortgage of unencumbered residential house/flat,commercial or industrial property with a clear marketalbe title situated in the Metros/Urban/Semi-Urban areas/Centres only and which stands in the name and possession of the borrower (individual/business enterprise).The forced sale value/market value of the property shall have to be at least equal to 1.5 times of the loan amount.Besides the property should be vacant. RATE OF INTEREST:2.5% above the Banks Prime Lending Rate (PLR) (presently 12% per annum).Effective rate of interest would be 14.5% p.a. and would be charged with quarterly rests. REPAYMENT:The loan granted under the scheme together with interest thereon would be repyable within a maximum period of 60 months through 44
Equated Monthly Instalments(EMI`s) commencing one month after disbursement of the loan. The repayment shall have to be fixed on realistic basis so that the gross deductions including the EMI for the loan granted under this scheme does not exceed 50% of the borrower gross income.In case of individual borrowers the income of spouse shall be taken into account for determining the repaying capacity of the borrower. INSURANCE:-The property against which the loan is granted will have to be comprehensively insured against all risks for its full value during the continuance of the loan facility from the Bank.The cost of the insurance to be borne by the borrower and the policy will be drawn in the joint names of the Bank and the borrower with usual Bank clause therein.
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Loans and Advances

DEPOSIT SCHEMES INTEREST RATE STRUCTURE FOR LOANS AND ADVANCES (wef 01-032001) (I) Prime Lending Rate (II) UPTO Rs. 2.00 Lacs SIZE OF LIMIT ANNUM Upto and inclusive of Rs.25,000/11.5% Over Rs.25,000/- & upto Rs.2.00 Lacs (III) Over Rs. 2.00 Lacs Interest rate structure for loans and advances with aggregate limits of over Rs.2.00 lacs not otherwise specified hereinafter shall be as under:AGGREGATE SCORE INTEREST (p.a.) Compliance of 7 out of 7 parameters Compliance of 6 out of 7 parameters Compliance of 5 out of 7 parameters Compliance of less than 5 parameters (IV) TRANSPORT OPERATORS Upto Rs. 2.00 Lacs SIZE OF LIMIT RATE OF INTEREST A+ A B C 13.00 14.00 15.00 16.00 CREDIT RATING RATE OF 12.00% RATE OF INTEREST PER 12.0% Per Annum
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Upto and inclusive of Rs.25,000/Over Rs.25,000/- & upto Rs.2.00 Lacs Over Rs. 2.00 Lacs SIZE OF LIMIT Operators owning upto two vehicles
11.5% 12.00%
RATE OF INTEREST 13.5%
Operators owning more than two vehicles14.5% Operators owning more than ten vehicles 16.00% (V) ADHOC FACILITIES (OVER & ABOVE SANCTIONED LIMIT) the rate applicable to regular limit (VI) (GENERAL PUBLIC) w.e.f. April 01, 2001 SIZE OF LIMIT Upto Rs.25,000/Over Rs.25,000/RATE OF INTEREST 12.50% 13.50% CONSUMER CREDIT 2% above
Over Rs.25,000/- to self employed professionals/ engineers/ doctors/ architects/ chartered accountants/ lawyers/ teachers etc. 13.50%
(VII) CONSUMPTION LOANS (w.e.f. April 01, 2001) (VIII) LOANS TO INDIVIDUALS AGAINST
13%
SHARES/DEBENTURES 17.50%
(IX)
LOANS
AGAINST
GOVT.
SECURITIES/NSC's/IVP's/KVP's/LIFE 15.00%
INSURANCE POLICIES/ UTI UNITS ETC. (X) HOUSING FINANCE
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The revised rate of interests are applicable to fresh loans/disbursements only. SIZE OF LIMIT Upto Rs.25,000/Over Rs.25,000/- & upto Rs. 2.00 lacs Above Rs. 2.00 lacs *
Revised rate of Interest
RATE OF INTEREST 11.00%* 11.50%* 12.00%*
(XI) EDUCATIONAL LOANS w.e.f. April 01, 2001 SIZE OF LIMIT Upto Rs.25,000/Over Rs.25,000/- & upto Rs. 5.00 lacs Above Rs. 5.00 lacs (XII) LOANS TO LEASING RATE OF INTEREST 11.00% 12.00% 12.50% AND HIRE PURCHASE
COMPANIES/FIRMS/NBFC's Borrowers with "A+" Credit Rating Borrowers with "A" Credit Rating Borrowers with "B" Credit Rating Borrowers with "C" Credit Rating 15.50% 16.00% 16.50% 17.00%
(XIII) DIFFERENTIAL RATE OF INTEREST (DRI)4.00% (XIV) CLEAN OVERDRAFT (w.e.f. April 01, 2001) (XV) ADVANCES AGAINST BANK'S DEPOSITS 18.00%
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A)
When the advance is granted against term deposits and the
deposit stands in the name of: 1. The borrower singly or jointly; 2. One of the partners of the partnership concern and the advance is granted to the said concern; 3. The proprietor of the proprietary concern and the advance is granted to the said concern; 4. A ward whose guardian is competent to borrower on behalf of the ward and where the advance is made to the guardian of the ward in such capacity; The interest has to be charged at 2% over the Deposit rate with quarterly rests. B) Advance granted against third party deposits, to attract interest @ 2% over the Deposit rate or PLR whicever is higher. The above rates are applicable to advances granted upto 90% of the value of deposit (PRINCIPAL + INTEREST ACCRUED). Incase where drawings are allowed in excess of 90% of the value of deposit (PRINCIPAL + INTEREST ACCRUED) interest as applicable to clean overdrafts has to be charged on the portion exceeding 90% of the deposit.
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DEPOSITORY SERVICES SCHEME FROM J&K BANK LTD. DEPOSITORY SERVICES SCHEME A depository is like a bank where securities are held in electronic (dematerialized) form. BASIC FEATURES

Dematerialization:Stock Broking through INVESTMART an initiative of ILFS. Depository Participant of NSDL and CDSL. Loan Against Shares Market transaction . Off-market transactions. Pledge of securities. Rematerialization
NETWORK A network with full range of demat and teledepository services our branches are at Delhi ,Srinagar and Jammu.
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RESEARCH METHODOLOGY:
The purpose of methodology section in the report making is to describe the research process that is followed while doing the main part. This would however include the research design, the sampling procedure, and the data collection method. This section is perhaps difficult to write as it would also involve some technical terms and may be much of the audience will nor be able to understand the terminology used. The methodology followed by the researcher, during the preparation of the report was:
a) SECONDRY DATA b) PESONAL VISITS
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SECONDRY DATA-When an investigator uses the data that has been already collected by others, is called secondary data. The secondary data could be collected from Journals, Reports, and various publications. The advantages of the secondary data can be It is economical, both in terms of money and time spent .The researcher of the report also did the same and collected secondary data from various internet sites like Google.com, altavista.com and many more. The researcher of the report also visited various libraries for collection of the introduction part. PERSONAL VISITS-As a part of the analysis, it was necessary to visit the banks of different branches of J&K bank and also of ICICI, IDBI, HDFC bank, as it would always help me knowing the nature of product with J&K bank. i visited different branches of J&K bank and asked the employees and manager different questions which would help us in this project.
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DATA COLLECTION FOR COMPETITORS ANALYSIS
ICICI, IDBI, HDFC BANK

Eligibility FOR LOANS Home loan Land loan Office premise loan Loan against property
Home loan
You must be at least 21 years of age when the loan is sanctioned.
The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier.
You must be employed or self-employed with a regular source of income.
Land loan
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You must be purchasing a plot of land for residential use. The purchase has to be from a development authority or from a registered co-operative society.
The purchase of the land must be for the construction of a house.
The plot of land must be clearly demarcated with clear boundaries.
Office premise loan
The loan must terminate before or when you turn 65 years of age.
You must be self-employed with a regular source of income. The loan can be for the purchase / construction / extension of a non-residential property.
A loan for renovation or improvement will be given only at the time of acquisition of property.
Professionally qualified and self-employed individuals (doctors, pathologists, company chartered accountants, architects, cost accountants, consultants, secretaries, engineers,
lawyers, chemists) can apply.
A minimum of 3 years work experience is a must. 54
Loan against property
Your must be employed or self-employed with a regular source of income.
You must be the owner of a self-occupied property.
Interest Rates for Resident Indians Adjustable Rate Loans: Special offer - 0% processing fee.

Adjustable Rate Home/Land Loans Adjustable Office Premises Loan Loan Against Property
Fixed Rate Loans:

Home loan Land loan Office Premises Loan Loan Against Property
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Promotions schemes by ICICI bank

Adjustable Rate Loans Home Loans/Land Loans: Special offer - 0% processing fee
ICICI,bank
Home
Loans
announces
it's
Special
Interest
Rates.These interest rates are valid for new home loans for a limited period only. The interest rate on these loans is linked to the ICICIHome PLR and moves up or down with the ICICIHome PLR The ICICIHome - PLR for ICICIHome Loans is currently 10.25% p.a.The EMI table for ARHL is given below: Floating rate Tenure (yrs) Rate Interest * Upto 5years 8.25% 6 10 years 8.75% 11 years * Interest rates valid for fresh adjustable rate home loans of a value of Rs.1-10 lakhs.Offer valid for a limited period only.

ofEMI per Lac
2040 1254 916
209.25%
Interest Calculated on basis of monthly rest. Maximum Tenure of 20 years. 0% * Processing Fee. No fee for part prepayment.
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Interest rates would be adjusted periodically with change in ICICIHome PLR.
Special offer on interest rates also for loans above Rs.10 lakhs.
Office Premises Loan: Special offer - 0% processing fee The current rate of interest for these loans is 12.00% for all tenures. The interest rate on these loans is linked to the ICICIHome PLR and moves up or down with the ICICIHome PLR. The EMI table is given below Floating rate Tenure (yrs) Rate Interest 5 10 15

ofEMI per Lac
12.00% 12.00% 12.00%
2225 1435 1201
Interest Calculated on basis of monthly rest. Maximum Tenure of 15 years. 0% * Processing Fee. A pre-payment fee of 2% on the amount prepaid, either in part or full.
TYPES OF CARDS
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Credit Card Debit cum ATM Card
DEMAT ACCOUNT ICICIBank Demat Services boasts of an ever-growing customer base of over 4 Lac Account Holders. In our continuous endeavor to offer best of the class services to our customers we offer you with the following features: Online access to your demat account. Check your holdings, transactions, and status of requests and much more. Dedicated specially trained customer care executives at our call centre, to handle all your queries. Holding and Transaction details available round the clock on IVR (Interactive Voice Response) system.. With a countrywide network of over 200 branches, you are never far from an ICICIBank Demat Services outlet. You will find our service charges very competitive offering the best value for your money. You can also avail yourself of online share trading services from ICICIdirect.com and get a 3 in 1 account inclusive of a demat, brokerage and an ICICIbank account.
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About IDBI
Background
The Industrial Development Bank of India (IDBI) is the apex financial institution in India and a leader and chief co-coordinator for other financial institutions at national and state levels. It is also the 10th largest development bank in the world. As at financial year 2000-2001 end, IDBIs asset base was over Rs. 700 billion (Rs. 70,000 crore). It was established in 1964 by the Indian Government under an Act of Parliament, the Industrial Development Bank of India Act, 1964 (IDBI Act). Post second five-year plan, need for an apex felt. IDBI was established with the main objective of co-coordinating the functioning of the development financial institutions and to supplement their efforts in meeting the gaps in the area of industrial finance. Planning, promoting and developing industries to fill the gaps in the industrial structure of the country, providing technical and administrative assistance for promotion or expansion of industry, undertaking market and investment research surveys in connection with the development of the industry and to provide finance keeping in view the national priorities irrespective of the financial attractiveness of projects are its other objectives. IDBI was initially established as a wholly owned subsidiary of the Reserve Bank of India (RBI) by transferring the then industrial finance department of RBI. In 1976, the ownership of IDBI was institution to co-ordinate workings of other financial institutions and help in the countrys industrial development was
59
transferred to the Government of India. The international finance division was hived off from IDBI in 1982 as EXIM Bank. In 1990, IDBIs portfolio related to small-scale industrial sector was transferred to form SIDBI, as a wholly owned subsidiary. The IDBI Act was amended in October 1994 to, inter alia, permit IDBI to raise equity from the public, subject to the holding of the Government of India falling not below 51% of the issued capital. IDBIs status also changed from a Government Undertaking to a company registered under the Companies Act 1956. Subsequently, it made an Initial Public Offering of equity in July 1995, thereby raising over Rs. 20 billion (Rs. 2,000 crore). The government stake was thus reduced to 72.14%. In July 2000, Government converted 247 million equity shares to preference shares, reducing Government equity stake to 58%. To compete in the changed scenario in the Indian financial markets post-liberalization, the bank is trying to diversify into various other activities. It is introducing new products and services to transform it into a financial supermarket. This involves alliances with other institutions or through subsidiaries. The company has also entered the retail segment in the 90s for borrowings. It plans overseas listing in the near future.
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Management
Being a statutory organisation set up under an Act of Parliament, the composition of the Board of Directors is prescribed by the IDBI Act, 1964. The board can have maximum 12 directors, consisting of a Chairman and a Managing Director, appointed by the Government of India (both functions can be assumed by the same person), a Whole Time Director to be appointed by the Government on recommendations of the Board, two officials of the Government, three directors having special knowledge / professional experience in diverse fields nominated by the Central Government and four Directors elected by the shareholders other than the Government of India. The Bank has constituted a number of committees, at the level of the Directors and officials. The sub-committees of the board are: (a) Executive Committee
The Executive Committee, which meets every month, deals with sanctions of assistance and other operational matters. In terms of Delegation of Powers, as approved by the Board, all project proposals for sanction of assistance above Rs. 50 crore and all sanction proposals where the project cost or total exposure in a company exceed Rs. 200 crore, are submitted to the Executive Committee. The Board / Executive Committee also decides on the matters related to Business Plans, Resource Mobilization, Investments, Capital Expenditure, Risk Management System, etc.
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(b)
Audit Committee
The Audit Committee, consisting of five directors, is headed by an independent professional director. The Audit Committee acts as an interface between the management and the statutory and internal auditors overseeing the internal audit functions. It reviews the audit programmes, reports and compliance; it approves annual/quarterly accounts, holds periodic dialogue with the statutory auditors and Internal Audit Department and executives and reviews compliance with the reports of regulatory authorities. IDBI has set up five Regional Advisory Committees comprising persons having intimate knowledge of the problems and prospects of industries in the respective regions, technocrats, academicians, etc, to guide and advice IDBI zonal offices in the matter of balanced and accelerated industrial development of the respective regions. All sanctions and credit related matters are approved by the Credit Committee at the head office and Zonal Committees at zone level. While the Credit Committee is headed by the DMD, the Zonal Committees are headed by the Chief General Managers in-charge of the zones concerned. The Credit Committee meets every week and the Zonal Committees every fortnight. When considered necessary, e.g. in the cases of large projects involving new or sophisticated technology or projects of a nature not handled earlier, the Bank draws upon the expertise of outside professionals by constituting Ad-hoc Committees to which proposals are referred for advice.
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The Board of IDBI has constituted a High Powered Committee headed by CMD and DMD and all the Executive Directors as members. The Committee deals with restructuring and one-time settlement cases of larger size. Also, the Empowered Committee, consisting of senior executives and headed by the DMD, deals with and recommends all cases relating to settlement of dues from clients. Besides, there are other committees like (a) Asset-Liability Management Committee for risk
management, (b) Disinvestment Committee for approving sale of
securities, (c) related (d) Information Technology Committee for deciding on ITmatters, and Internal Audit Committee for monitoring audit functions.
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HOME LOAN The moment you decide to buy a home, you can put in your application. Yes, you can apply for a loan even before you have selected the property. The property need not even be in the same city where you are residing. The only condition being that IDBI has home loan operations in both the cities. Should there be a change in your financial status or plans, you can withdraw your sanction within 6 months of approval. However, we are always ready to assist our customers in the event of legitimate problems. And, we might reconsider this if we find that there are satisfactory reasons for the delay. And, neither would we charge you extra for this delay. If it is refinancing you are interested in, it is possible within 6 months from the date of purchase of property.
Adjustable Rate Home Loans

The current rate of interest for these loans is 11% for 6-20 years. The interest rate on these loans is linked to the Retail Home Loan Prime Lending Rate (RHL-PLR) and moves up or down with the RHLPLR. The EMI table is given below
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Loan Tenure 5 years 10years 15years 20years

Rate of Interest EMI per Lac 10.50% 11.00% 11.00% 11.00% 2149 1378 1137 1032
Interest Calculated on basis of monthly rest. Maximum Tenure of 20 years. Total fee of 1% for loans upto 25 lakhs and 0.5% for loans above 25 lakhs
No fee for part prepayment. In the case of full prepayment or foreclosure, 2% will be applicable on amount prepaid including any such amounts prepaid in the last one year
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Adjustable Office Premises Loan

The current rate of interest for these loans is 12.25% for all tenures. The interest rate on these loans is linked to the Retail Home Loan Prime Lending Rate (RHL-PLR) and moves up or down with the RHLPLR. The EMI table is given below
Loan Tenure 5 years 10years 15years

Rate of Interest 12.25% 12.25% 12.25%
EMI per Lac Rs2326 Rs1490 Rs1240
A pre-payment fee of 2% on the amount prepaid, either in part or full.
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Adjustable Loan Against Property

The current rate of interest for these loans is 11.75% for residential property and 12.75% for commercial property. The interest rate on these loans is linked to the Retail Home Loan - Prime Lending Rate (RHL-PLR) and moves up or down with the RHL-PLR. The EMI table is given below
Residential Property Tenure 5 years 10years 15years EMI 2212 1420 1184
Commercial Property
EMI 2263 1478 1249
No fee for part prepayment. In the case of full prepayment or foreclosure, 2% will be applicable on amount prepaid including any such amounts prepaid in the last one year.
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Fixed Rate Loans

Home Loan
Tenure (years) 1-5 6 - 10 11 20 21 30

Interest Rate (% p.a.) EMI 11.00% 11.50% 11.50% 12.00% 2175 1406 1066 1029
The interest rate is calculated on an monthly reducing basis. Total fee of 1% for loans upto 25 lakhs and 0.5% for loans above 25 lakhs
No fee for part prepayment. In the case of
full
prepayment or foreclosure, 2% will be applicable on amount prepaid including any such amounts prepaid in the last one year.
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Land Loan
Tenure (years) 15 6 10 11 20

Interest Rate (% p.a.) EMI 11.00% 11.50% 11.50% 2175 1406 1066
The interest rate is calculated on an monthly reducing basis. Total fee of 1% for loans upto 25 lakhs and 0.5% for loans above 25 lakhs
No commitment fee. No fee for part prepayment. In the case of full
prepayment or foreclosure, 2% will be applicable on amount prepaid including any such amounts prepaid in the last one year.
Office Premises Loan

Tenure (years) 15 6 10 11 15 Interest Rate (% p.a.) 12.75 12.75 12.75
The interest rate is calculated on an monthly reducing basis.
Total fee of 1% for loans upto 25 lakhs and 0.5% for loans above 25 lakhs. 69
A pre-payment fee of 2% on the amount prepaid, either in part or full.
Loan against Property

Type of property Residential Commercial # Interest Rate (% p.a.)* 12.25 13.25
The interest rate is calculated on monthly reducing basis. Loans against commercial property shall be offered only to doctors.
Total fee of 1% for loans upto 25 lakhs and 0.5% for loans above 25 lakhs.
Disbursement
Your loan will be disbursed after you identify and select the property or home that you are purchasing and on your submission of the requisite legal documents.
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While you may be under the impression that the list of documents asked for is rather extensive, please note that it is for your own good. Each and every single document asked for will be verified and checked to ensure your safety. This may take some time but we want to ensure a clear title and will complete all the legal and technical verifications to ensure that you have full rights to your home. The 230 A Clearance of the seller and / or 37I clearance from the appropriate income tax authorities (if applicable) is also needed. On satisfactory completion of the above, on registration of the conveyance deed and on the investment of your own contribution, the loan amount (as warranted by the stage of construction) will be disbursed by IDBI. The disbursement will be in favour of the builder/seller.
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List of documents for disbursement

Standard documents: Loan Agreements Disbursement Requests Post-dated cheques Personal guarantors documents, as the case may be Some documents are specific to each state. For further
information, please contact the nearest office.
Sanctioning Documents
Passport size photograph. Age verification: PAN card, Voters ID, Passport, License. Bank statement for the last six months. Income Documents e.g. Latest Form 16, Certified IT returns for latest 3 years. Processing Fee cheque. Loan Enclosure letter.
These are the documents required for sanctioning a loan. You may be asked to submit further legal documents if required by IDBI or its approved lawyers.
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Loan Amount
A number of factors are taken into account when assessing your repayment capacity. Your income, age, number of dependants, qualifications, assets and liabilities, stability/ continuity of your employment/ business are some of them. However, there are ways by which you can enhance your eligibility.
If your spouse is earning, put him/her as a co-applicant. The additional income shall be included to enhance your loan amount. Incidentally, if there are any co-owners they must necessarily be co-applicants.
Did you know that your fiance's income can also be considered for sanctioning the loan on your combined income? The disbursement of the loan, however, will be done only after you submit proof of your marriage.
Providing additional security like bonds, fixed deposits and LIC policies may also help to enhance eligibility.
While there is no need for a guarantor, it could be that having one might enhance your credibility with us. If so, our loan officer would provide you with the necessary details. The final amount to be sanctioned will depend on your repayment capacity. However, what you ultimately are entitled to will have to conform within the limits fixed for each loan. Also, when the company looks at the total cost, registration charges, transfer charges and stamp duty costs are included.
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Eligibility Home loan
Land loan
You must be purchasing a plot of land for residential use. The purchase has to be from a development authority or from a registered co-operative society.
The purchase of the land must be for the construction of a house. Auto Loan : N/A Consumer Loan : N/A
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ABOUT HDFC
Consumer loan
Finance your consumer goods purchases with the HDFC Consumer Loan! The HDFC Consumer Loan will facilitate the purchase of a wide range of consumer durables like TVs, washing machines, refrigerators, air-conditioners, PCs, branded furniture, new twowheelers and new cars. In addition, the loan can also be used to refinance a purchase made in the last six months and/or to repay an outstanding car/twowheeler/consumer durable loan taken from any other institution or bank. To top it all, the HDFC Consumer Loan can be used to purchase more than one product and can be availed over a period of time. Currently, only existing customers of HDFC who satisfy certain criteria are eligible for the Consumer Loan.
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Terms & Conditions

HDFC's Consumer Loans are easy to apply for and repayable in comfortable monthly instalments. All the applicants of the housing loan availed from HDFC, (including co-applicants) are required to apply for the Consumer Loan if they wish to also take this loan. Get in touch with your nearest HDFC offices today.
Amount
Loans can be availed upto 100% of the cost of the product(s). HDFC will determine the loan amount based on the repayment capacity of the individual. HDFC's main concern is to help individuals comfortably repay the borrowed amount.
Fees
An administrative fee of 1% of the amount disbursed is payable at the time of each disbursement .i.e., Rs. 10 per Rs. 1000 of disbursement. However, the administrative Fees is being waived for loans disbursed before March 31, 2001.
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Rate of Interest and Repayment Term

This section is being Updated.
Prepayment
You can repay your loan ahead of schedule. In the case of a Consumer Durable/Two-wheeler loan, you can prepay only the entire loan amount. In case of a car loan, you may make a part prepayment (subject to a minimum amount of 25% of the outstanding loan amount). There is a charge of 2% payable only if the loan is prepaid within one year from the date of disbursement.
Security for loan

Security for the Consumer Loan will be the extension of the existing security on your housing loan. In case the current value of the security is not adequate, then you may be required to provide additional security.
How to apply
It's simple! You can get the application form by email or normal mail. Alternately, you can collect the application form from any of your nearest HDFC Offices.
You need to submit the application form along with the supporting documents.
Supporting Documents to be attached:

With the application form: 77
1. Proof of ID having your photograph 2. Latest salary slip/certificate (if employed) 3. Latest Balance Sheet, P&L Account and Income-Tax return (if self-employed) At the time of each disbursement: 1. Applicable administrative fee 2. Proof of ID having your photograph 3. Copy of proforma invoice(s) After each disbursement: 1. Copy of final invoice(s) 2. Copy of Registration Book (for two-wheelers and cars only)
HOME LOAN
With an HDFC Home Loan, you can bring to life the house of your dreams. You could buy a self-contained flat in an existing or proposed co-operative society, in an apartment owner's association or even an independent single-family or multi-family bungalow or row house as well as a house that you like anywhere in India. HDFC Home Loans are easy to arrange and can be customised according to your needs and repayment capability. Moreover, in Delhi you can get finance for first power of attorney purchases of DDA flats allotted before 1992.
Terms & Conditions
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HDFC's Home Loans offers you various unique benefits and are easy to arrange and repayable in easy monthly instalments. The terms of the loan can be structured according to your unique requirements. Home Loans can be applied for by either individually or jointly. Proposed owners of the property, in respect of which the loan is being sought, will have to be co-applicants. However, the coapplicants need not be co-owners. Loans can be availed upto a maximum of 85% of the cost of the property (including the cost of the land). HDFC lends upto a maximum of Rs. 1,00,00,000 on a Home Loan to an individual. You can repay the loan over a maximum period of 20 years. We will determine the loan amount after evaluating the repayment capacity of the individual. HDFC's main concern is to help individuals comfortably repay the borrowed amount. Get in touch with your nearest HDFC office today. We will be pleased to discuss and help you realise your plans for a house.
Fees
A processing fee of 0.5% of the loan amount applied for i.e. Rs. 5 per Rs. 1000 of the loan applied for is payable when the application form is submitted to HDFC. This fee is in respect of costs incidental to the application. For example
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Loan applied for Rs. 20,000 Rs. 1,00,000
Fees Rs. 100 Rs. 500
On approval of the loan, a loan offer is made to you. On acceptance of the offer, you will have to pay an administrative fee of 0.5% of the loan approved. You can also pay the processing and administrative fees upfront i.e. 1% of the loan at the time of submission of the loan application itself.
Rate of Interest
The current applicable fixed rate of interest in respect of the total loan approved is are as follows:
Annual Rest Option

Term of Loan (No. of Years) Upto 5 6 10 11 20 Monthly Rest Option Term of Loan (No. of Years) Upto 5 6 10 11 20 Rate of Interest (%p.a) 10.00 10.50 11.00 Rate of Interest (%p.a) 9.75 10.25 10.75
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You
repay
the
loan
in
Equated
Monthly
Instalments
(EMIs)
comprising principal and interest. EMI per Rs.1,00,000 for Annual Rest Option Term of loan (No. of years) 5 10 20 Rupees 2185 1371 1030
EMI per Rs.1,00,000 for Monthly Rest Option Term of loan (No. of years) 5 10 20 Rupees 2125 1350 1033
Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest is called pre-EMI interest. An early redemption charge of 2% of the amount being prepaid is payable on repayment of a loan ahead of schedule.
Security for the loan

Security for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such
81
other collateral security as may be necessary. Interim security may be required, if the property is under construction.
How to apply
It's simple! You can get the application form by email or normal mail. Alternately, you can collect the application forms from any of your nearest HDFC Offices. You need to submit it along with supporting documents and the processing fees at any HDFC office that is convenient to you. You can make payments by cheque marked "Payee's account only" drawn on a bank in a city where HDFC has an office, by demand draft (payable at par to HDFC) or by cash. You can make an application at any time after you have decided to acquire a house, even if the house has not been selected or the construction has not commenced. HDFC will consider your application, make enquiries as it deems necessary and convey its decision to you. On approval of the loan, a loan offer is made to you. On acceptance of the offer, you will have to pay an administrative fee for the loan approved. You can take disbursement of the loan after the property has been technically appraised, all legal documentation has been completed and you have invested your own contribution in full (Own contribution is the total cost of the property less HDFC's loan). The loan will be disbursed in full or in suitable instalments (normally not exceeding three in number) taking into account the requirement of funds and progress of construction, as assessed by HDFC and not necessarily according to a builder's agreement. 82
Supporting Documents to be attached:

For approval of loan a) Common for all applicants: b) Allotment letter of the co-operative society / association of apartment owners. c) Copy of approved drawings of proposed construction / purchase. d) Agreement constructed. e) If you have been in your present employment / business or profession for less than a year, mention details of occupation for previous 5 years, giving position held, reasons for change and period of the same. f) Applicable Processing Fees. g) Any other information regarding your repayment capacity that is necessary and will assist HDFC in appraising the case. for sale/sale for deed/detailed property cost to be estimate from /
architect/engineer
the
purchased
83
b) Additionally, If You Are Employed: 1. Latest salary slip/salary certificate showing all deductions. 2. If your job is transferable, permanent address where
correspondence relating to the application can be mailed. 3. A letter from your employer agreeing to deduct the monthly instalment towards repayment of the loan from your salary. This will expedite the processing of your loan application.
If You Are Self-Employed: 1. Balance Sheets and Profit & Loss Accounts of the
business/profession along with copies of Individual Income Tax Returns for the last three years certified by a Chartered Accountant. 2. A etc. For Disbursement Of Loan Please contact your local HDFC office for the required note giving information on the nature of your
business/profession, form of organisation, clients, suppliers,
documentation. Please take photocopies of all documents that are submitted to HDFC (including the application form) for your personal record.
84
Auto loan from HDFC FEATURES OF HDFC

Scheme Name Locations Auto Loans Delhi, Mumbai Joint Application Eligibility No Age should be within 21to 65 years Bangalore, Chennai, Kolkata,
including the loan period. Minimum Loan Amount Tenures Interest Periodicity Prepayment Loan Type Deposit Amount Margin Money 2% on the Extra principal amount Margin NA 10% to 15% depending on model to model. Processing Fees Nil MaximumMinimum of 50% of the car value to a maximum of 90% of the car value. 1year to 5 years CalculationMonthly Reducing Balance
Documentation chargesNA Documents to submit For salaried: Salary Proof, ITR , 2 signed photograph, residence proof ( license, passport, ration card, ID card ), loan application form. For Self-Employed: : ITR, 2 signed photograph, income proof, address proof, 85
loan application form and financial statements . Interest Economic car 15% Mid size car 14% Luxury car 14.5% Other Details NA
86
HDFC BANK SAVINGS ACCUNT

(Get the power of e-age Savings Account ) The e-age Savings account from HDFC bank brings you a
comprehensive range of products and services. Each one is designed to minimise your effort marking it much simpler for you to do your banking. We now have 172 branches in 78 cities and over 480 ATMs across the country add to this an intentional network of over 6.5 lakh ATM which you can access from your international debit card. Thats world class banking for you. Features and Benefits Interest @ 4% p.a at quarterly intervals. Quarterly account statements Free personalized cheque book Free AMT card Free mobile commerce Free net banking Debit card annual fee Rs. 100/ Free Sweep in facility Free bill pay Intricate/branch banking Safe deposit lockers.
87
Free 24 Hour ATM You can withdraw upto Rs. 10000/- per day from any of our extensive network of over 480 ATMs across 78 cities all over the country. You can also deposit cash cheques get a mini statement of the last 10 transaction, get an account balance request for a cheque book and transfer funds all at the push of a few buttons. This amazing facility is available 24 hours a day 365 days a per.
Home loan Attractive interest rates Door-step service from enquiry stage till final disbursement No guarantor required Can transfer your existing high-interest rate loan Free accidental death insurance Special 100% funding for select properties Higher eligibility for selfemployed professionals through segment-specific schemes
Car loan Preferred Financier" status with 12 leading car manufacturers. Largest network amongst Private and Foreign Banks. Tie ups with most manufacturer dealres to ensure best possible service to customers. Finance schemes available across leading dealerships. Finance available for used cars. Hassle-free application process with the click of a mouse.
88
Personal loan An any-purpose loan with no questions asked regarding the end use of the loan An unsecured, customer-friendly loan with no security, collateral or guarantors required Loans are available from as low as Rs 20,000 to Rs 5 lakh A wide range of repayment tenures of 12, 18, 24, 30 or 36 months A balance transfer facility available for those who want to retire their higher debt with a personal loan Reasons why you must consider an ICICI Home Loan In addition to a host of other features, here are three great reasons why every home loan seeker should consider ICICI Home Finance. You can take a loan to replace an existing one Interest rates on home loans have come down considerably in the last few years. Individuals who opted for housing loans in the years gone by, are still servicing them at 17% to 21% per annum. Quite a price to pay, since one can get a loan today for around 12% per annum. In such a case, you can opt for a balance transfer. Under this scheme, customers can replace their existing old high interest loan by a cheaper (equal to applicable current rates) loan. ICICI Home Finance will not only finance the balance amount of outstanding loan but also your prepayment charges to the old housing finance company. The result: A lower EMI with the same tenure A reduced tenure with the same EMI A reduced tenure and EMI The same EMI and tenure but an additional amount as a loan. For a detailed view on the
89
savings you can avail of by opting for this facility, read why it makes sense to transfer your loan
No charge on part-prepayment You may be expecting a windfall or inheritance in the near future. Or, even planning on selling some property or assets whose proceeds you can use to pay off this loan. It could also be the case that your income increases considerably and you would want to prepay at least a part of the loan. Most housing finance companies will charge you for prepayment. This prepayment penalty amounts to around 2% of the amount being prepaid. ICICI Home Finance does not levy a charge on part-prepayment. So, if there is a high probability that you will be able to at least partprepay your loan, then you should consider a loan from a housing finance institution that does not charge you for doing so. When you do prepay, you will get an option on whether you would like to reduce the EMI or the tenure. Unforeseen contingencies are taken into account ICICI Home Finance offers a free accidental death cover at absolutely no extra cost. This is extremely beneficial and protects both, your home and your family. Should you meet with an accident that results in death, your family will not face any problem concerning the loan repayment. The entire
90
loan will be repaid out of the insurance cover and they will not have to contend with any EMI payments. What is Down payment ? Housing finance companies would normally give a loan up to 8085% of the value of the property. The remaining amount would have to be paid by the buyer (to the seller), as a down payment before the he draws on the loan. What is Interest Tax ? Housing Finance companies have to pay a tax on the interest income they receive from you. They sometimes pass this on to the customer. Always check with the company if the interest rate they are quoting includes interest tax or not. This tax normally about 2% of the interest rate charged. E.g. if the interest rate quoted is 14% then the actual interest rate including interest tax is about 14.28%. What is Processing Fee ? A one time fee which is normally non-refundable and payable along with your initial loan application. Rates can vary from 1-2% of the loan amount. What is Administrative Fee ? A one-time fee, which is normally non-refundable and payable just before your loan, is disbursed. Rates can vary from 1-2% of the loan amount. What is the Post tax effective rate of interest(PTERI) The PTEIR is a copyrighted word that is used by this web site to reduce the comparison of costs of a loan to one comparable figure 91
across all lenders. While considering the cost of the loan, we calculate all the payments and receipts that are made by you when you take a loan from a particular lender. The exact date of each of the interest repayments, principal repayments, upfront payment ( administrative and processing fees ) is tabulated and discounted to today's money value terms. Similarly tax savings each year due to the loan is also discounted to today's value terms. These are them inserted into an all discounted cash flow model calculator to find out what the Real cost of the Loan is. This final interest rate figure is called the PTEIR. What is Rest ? Interest rates are quotes on a daily rest, monthly rest or annual rest basis. The annual rest quote implies that the company gives you the credit for the monthly principal repayments only at the end of each year. Such loans are therefore more expensive than a monthly /daily rest loan. The shorter the tenure of the loan, the greater the effective interest rate difference will be. What are Upfront costs ? There are several payments that you will have to make BEFORE you are sanctioned a loan. These upfront costs include: 1) Processing Fees: Paid to the lender while making an application 2) Administration fees : paid to the lender on sanctioning the loan 3) Margin payment : paid by you to the builder as the down payment and the rest of the payment towards the cost of the house is made directly by the Home loan lender to the builder.
92
In the case of Refinancing of loans, you may have to pay a Repayment penalty to the existing lender before you can refinance the loan from a new lender.
What is the discounted cashflow model ? While calculating the effective interest rate you are actually paying, we need to consider the "time value of money". A rupee saved today is worth more than a rupee saved 10 years later. Therefore in all calculations of effective rates, we must consider when a payment is made. The earlier the payment is made, the greater the cost attached to it. To find the cost in today's money terms for a payment made one year down the line we will discount the amount by a factor of (1+r%) where r% is the interest rate at present for a Fixed deposit that matures in one year. ( because that is the opportunity cost of your money) What credit norms ? Lenders have internal rules regarding the profile of the borrower that they are comfortable lending to. These are called the credit norms of the lender. What are Direct Interest costs ? Direct Interest cost is the payment that you make towards the interest on the loan. This is a part of the monthly installment that you pay each month. However, there are other hidden costs in the
93
loan like the upfront fees that you pay and the cost of prepaying an old loan. Equal Monthly Installment (EMI) : Loan repayments are usually in Equal Monthly Installments over the tenure of the loan. Some banks also offer a Variable Installment Scheme were in repayments are higher in the beginning of the loan period. This is beneficial for those individuals who are trying to maximise their tax breaks in the initial years and expect future tax breaks to fall (we believe that the opposite is more likely!) Fixed /Floating rate: Under a floating rate loan, the interest rate on the loan varies from time to time depending on the Prime Lending Rate fixed by the Reserve Bank. This change can happen as frequently as one in six months. If the PLR falls, you benefit as the effective interest rate on your remaining loan falls. However, your payments every month stay the same. The Finance Company will refund some of your EMI cheques and effectively compensates you by reducing the tenure of the loan. The reverse happens if the PLR rises, much to your disadvantage. Choosing between fixed and floating loans: In the last 2-3 years the PLR has fallen as the Indian economy had slowed down and demand for money was low. If you expect this trend to continue, you stand to benefit from a floating rate loan. If interest rates begin to rise again, you can prepay your floating rate loan and lock in to fixed rate loan. You must them choose a floating rate loan with no repayment charges (one is offered by HSBC).
94
However, if you do not want to speculate on interest rates and need a stable loan to help planning the future, then go for a Fixed rate loan. Prepayment charge: Most Housing Finance companies charge a fee for prepaying your loan before its full tenure is over. This helps them plan their finances, at your expense. Your earning capacity will normally increase with age and a prepayment fee can be a big cost. This fee also limits your ability to refinance the loan if interest rates fall after a few years. The fee is normally in the range of 1-2% of the prepaid amount. Refinance Charge: 7Some Housing Finance companies do not charge you for prepayments from your own savings. However, if you retire a loan using money borrowed from another Finance Company, you will have to pay a Refinance charge of 1-2% of the loan outstanding
95
FINDINGS
J & K, Bank of Punjab complete bond issues
Economic Times Dated: 17/01/01 Two private sector banks Jammu and Kashmir Bank and Bank of Punjab have successfully completed their subordinated bond issues in the private placement market. The subordinated bonds qualify as tier-II capital and will help the banks improve their capital adequacy ration. Jammu and Kashmir Bank has completed its Rs 75 crore issue at the rate of 11.75 per cent for a 63-month tenure. The issue lead managed by ICICI Securities & Finance Co and SBI Capital Markets, has succeeded in raising over the target amount. Although the bank already enjoys a capital adequacy ratio of 18.82 per cent as on March 2000, which is among the highest in the industry the bank decided to raise additional capital to support the future asset growth of the bank and its proposed foray into the mutual fund and insurance business. According to merchant bankers, the bonds were placed largely with banks and financial institutions. The Bank of Punjab issues managed by SBI Capital Markets has also succeeded in raising the target amount of Rs 50 crore. The bonds offered an annualized return of 12 per cent for a period of 63 months. According to bankers, further issues of tier II bonds from public sector banks are likely as they raise capital to make up for the reserves they part with to fund their voluntary retirement schemes. In December, SBI concluded its Rs 2,500 crore-subordinated debt issue where it offered an annualized return 11.37 per cent.
96
J&K Bank gets State nod for foreign partner

Sarbajeet K. Sen NEW DELHI, Aug. 12
THE Jammu and Kashmir Government has given in principle clearance to the proposed induction of a foreign partner by J&K Bank Ltd through a strategic sale of equity. "The State Government has given us the go ahead to scout for a foreign partner. Once we finalise our partner we would go to the RBI for permission,'' Mr M.Y. Khan, Chairman, J&K Bank, said. RBI clearance would be required only if the partner picks up over five per cent equity. Mr Khan said obtaining the permission of the State Government was necessary not only because of its shareholding but also since it would have to pump in additional funds to maintain its holding above the 50 per cent level after the strategic sale. The State Government holds 53 per cent of the paid-up equity of Rs 48.16 crore of the bank. The bank has, however, not decided on the exact percentage of equity that it would offer to the strategic partner. "This would depend on how the negotiations progress,'' Mr Khan said. Indications are that the offer might range anywhere between five and 15 per cent.
97
He said the bank was in talks with a number of foreign banks and institutions. "There is great interest in the bank. We are not in a hurry. We would wait for the right time so that we get the right price for our shares,'' Mr Khan said. On another front, he said the bank had being doing brisk business in insurance marketing. Agents representing the bank have collected Rs 1.5 crore life insurance premium for Metlife India Insurance Co. Pvt. Ltd, while for Allianz Bajaj General Insurance about Rs 2 crore premium has been collected. Once the regulations for corporate agents and brokers are in place, it would consider having tie-ups with other non-life insurance companies to market their products. However, in the life sector it would exclusively market Metlife products since the bank is one of the promoters of the insurance company. J&K Bank had also recently entered into an exclusive arrangement with the State Government to act as the sole collecting agent for all electricity bills paid by consumers. "At a commission rate of about 0.5 per cent, we hope to collect about Rs 22 crore as fee-based income through this arrangement alone,'' Mr Khan said. A similar arrangement had been recently worked out with VSNL to collect their bills, he said.
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AGENCIES[ WEDNESDAY, JUNE 04, 2003 03:05:51 AM ]
NEW DELHI: Posting a 30% rise in net profit at Rs 338 crore for 0203, Jammu and Kashmir Bank, on Monday, declared 60% dividend for its shareholders. The payment for the dividend would be subject to the approval of RBI, a release from the bank said.
Total income of the bank rose by over 6% to Rs 1,714.6 crore in 02-03 compared to Rs 1,610.9 crore in the previous year. Aggregate deposits grew by almost 14% to Rs 14,674.9 crore as on March 31, 03 as against Rs 12,911.1 crore in 01-02. The banks capital adequacy ratio (CAR) stood at 16.5% in 02-03, much higher than the RBI mandated 9% and the capital and reserves grew by around 33% to Rs 1,242 crore in the last fiscal compared to Rs 937 crore in 01-02.
With focus on recovery, the bank was able to contain the net nonperforming assets to 1.6% of net advances and is aimimg at less than 1% in this fiscal.
99
Bank Fixed Deposits

Bank ABN-Amro Bank Allahabad Bank American Express Bank Bank of Baroda Bank of India Bank Maharashtra Bank of Punjab of
46-60 DAYS 61-90 DAYS 91-179 DAYS 1-2 YRS 2-3 YRS 3-5 YRS >5 YRS
3.50 5.25 4.75 4.25 4.75 5.25 5.00
3.50 5.25 4.75 4.25 4.75 5.25 5.00 5.25 4.50

61-90 DAYS
3.50 5.25 4.75 4.50 5.00 5.75 5.50 5.25 5.00

91-179 DAYS
3.503.75 5.75 4.75 5.25 5.50 5.75 6.00 6.25 5.75

1-2 YRS
3.75 5.75 5.00 5.50 5.50 6.00 6.25 6.00 5.75

2-3 YRS
3.75-4.5 NA 6.00 5.00 5.75 5.75 6.00 6.25 6.00 6.00

3-5 YRS
6.00 NA 5.75 6.00 6.50 6.25 6.00 6.00

>5 YRS
Bank of Rajasthan 5.25 Canara Bank Bank Central India Centurian Bank Citibank City Union Bank Bank of 4.50
46-60 DAYS
5.00 5.25 3.75 6.00
5.00 5.25
5.25 5.50
5.75 6.50 4.50 7.50 5.75 6.00 6.50 6.50 6.50
6.00 7.00 4.75 7.75 5.75 6.00 6.50 6.50 6.50
5.75 7.00 NA 8.00 6.00 6.25 6.75 6.75 6.75
5.75 NA NA 7.50 6.00 6.25 NA 6.75 6.75
3.75
6.00 5.00 5.00 5.75 5.50 5.75
3.754.00 6.50 5.25 5.25 5.75 5.50 6.00
Corporation Bank 5.00 Dena Bank Dhanalakshmi Bank Federal Bank 5.00 5.75 5.50
Global Trust Bank 5.75
100
HSBC HDFC Bank Bank ICICIBank IDBI Bank Indian Bank Indian Bank Jammu & Kashmir Bank Kotak Bank Oriental Bank of Commerce Punjab Bank National Mahindra Overseas
3.75 4.50
46-60 DAYS
3.75 4.75
61-90 DAYS
3.75 5.25
91-179 DAYS
4.004.75 5.75
1-2 YRS
5.00 6.00
2-3 YRS
5.005.25 NA 6.00
3-5 YRS
NA
>5 YRS
3.50 5.00 5.00 5.00
4.00 5.00 5.00 5.00
5.25 5.50 5.25 5.50
5.75 5.756.00 5.75 5.75
6.00 6.00 5.75 5.75
6.00 6.00 6.00 6.00
6.00 6.00 * 6.00 6.25
5.25
5.25
5.50
6.00
6.25
6.50
6.50
5.00
5.00
5.25
5.75
6.00
6.00
NA
5.00
5.00
5.25
5.75
5.75
6.00
6.00
5.00
5.00 5.50 4.00

61-90 DAYS
5.00 5.50 4.00

91-179 DAYS
5.75 6.75 4.25
5.75 6.50 4.25
6.00 6.75 4.50
6.00 6.75 4.50**
South Indian Bank 5.50 Standard Chartered Bank Bank State India Tamilnad Mercantile Bank UCO Bank Union India United Bank Bank of Bank of 4.00
46-60 DAYS
1-2 YRS
2-3 YRS
3-5 YRS
>5 YRS
5.00
5.00
5.00
5.50 7.257.50 5.75 5.75 5.75
5.75
6.00
6.00
6.25 5.00 5.00
6.25 5.00 5.00 5.00
6.50 5.25 5.00 5.25
7.25 6.00 5.75 6.00
7.00 6.00 6.00 6.25
7.00 6.00 6.00 6.25
of 5.00
101
India United Bank UTI Bank Vysya Bank Western 5.00 4.50 5.00 5.00 4.50 5.00 5.50 5.25 5.35 6.50 6.00 6.15 7.00 6.00 6.00 7.00 6.25 6.00 7.00 6.25 5.50
102
Home Loans
EMI per lakh (Rs)
5 years Bank
10 years
15 years
20 years Fixed Floating
Fixe Floatin Fixe Floatin Fixe Floatin d g 2,064 d 1,32 2 1,30 8 1,29 9 NA 1,26 4 1,32 2 1,29 4 NA 1,33 5 1,28 0 NA NA 1,36 3 1,35 7 g 1,281 d 1,10 6 1,07 5 1,06 5 NA NA 1,10 5 1,07 5 NA 1,12 1 1,05 9 NA NA 1,13 7 1,12 8 g 1,060
Bank of Baroda
2,10 1 2,07 6 2,10 1 NA 2,04 9 2,15
999
949
Birla Home Finance
2,064
1,294
1,060
NA
949
CanFin Homes Citibank Corporation Bank
2,170 2,112 2,037
1,327 1,308 1,250
1,065 1,059 1,025
946 NA NA
946 949 912
Dewan Housing Fin
0
2,08 8 NA 2,12 5 2,06 4 NA
2,088
1,308
1,090
998
982
HDFC HSBC HUDCO
2,076 2,040 2,112
1,281 1,253 1,307
1,059 1,014 1,090
966 NA NA
949 949 982
ICICIBank IDBI Bank
2,064 2,052 2,088 2,064
1,280 1,267 1,335 1,267
1,059 1,029 1,105 1,059
949 NA NA 1,066
949 916
998
Indian Overseas Bank NA LIC Housing Finance 2,11 2 2,15 7
949
PNB Housing
2,143
1,328
1,096
1,013
979
103
Standard Chartered
2,10 0 2,07 6 2,31 2 2,08 8
2,064
1,29 4 1,26 7 1,47 5 1,32 2
1,208
1,07 5 1,04 4 1,22 4 1,07 5
1,059
965
949
State Bank of India
2,064
1,253
1,029
932
916
Tata Home Finance*
2,113
1,308
1,060
1,116
949
Union Bank of India
2,076
1,308
1,059
965
949
104
INTEREST RATE STRUCTURE FOR LOANS AND ADVANCES (wef 01-032001) (I) Prime Lending Rate (II) UPTO Rs. 2.00 Lacs SIZE OF LIMIT RATE OF INTEREST PER ANNUM 11.5% 12.00% 12.0% Per Annum
Upto and inclusive of Rs.25,000/Over Rs.25,000/- & upto Rs.2.00 Lacs (III) Over Rs. 2.00 Lacs
Interest rate structure for loans and advances with aggregate limits of over Rs.2.00 lacs not otherwise specified hereinafter shall be as under:AGGREGATE SCORE INTEREST (p.a.) Compliance of 7 out of 7 parameters Compliance of 6 out of 7 parameters Compliance of 5 out of 7 parameters Compliance of less than 5 parameters (IV) TRANSPORT OPERATORS Upto Rs. 2.00 Lacs SIZE OF LIMIT Upto and inclusive of Rs.25,000/Over Rs.25,000/- & upto Rs.2.00 Lacs RATE OF INTEREST 11.5% 12.00% A+ A B C 13.00 14.00 15.00 16.00 CREDIT RATING RATE OF
105
Over Rs. 2.00 Lacs SIZE OF LIMIT Operators owning upto two vehicles RATE OF INTEREST 13.5%
Operators owning more than two vehicles14.5% Operators owning more than ten vehicles 16.00%
(V) ADHOC FACILITIES (OVER & ABOVE SANCTIONED LIMIT) the rate applicable to regular limit
2% above
(VI) CONSUMER CREDIT (GENERAL PUBLIC) w.e.f. April 01, 2001 SIZE OF LIMIT Upto Rs.25,000/Over Rs.25,000/RATE OF INTEREST 12.50% 13.50%
Over Rs.25,000/- to self employed professionals / engineers/ doctors/ architects/ chartered accountants/ lawyers/ teachers etc. 13.50%
(VII) 2001)
CONSUMPTION
LOANS
(w.e.f.
April
01, 13%
106
(VIII)
LOANS
TO
INDIVIDUALS
AGAINST 17.50 %
SHARES/DEBENTURES (IX) LOANS AGAINST
GOVT. 15.00
SECURITIES/NSC's/IVP's/KVP's/LIFE INSURANCE % POLICIES/ UTI UNITS ETC. (X) HOUSING FINANCE The revised rate of interests are applicable to fresh
loans/disbursements only. SIZE OF LIMIT RATE INTEREST Upto Rs.25,000/Over Rs.25,000/- & upto Rs. 2.00 lacs Above Rs. 2.00 lacs *
Revised rate of Interest
OF
11.00%* 11.50%* 12.00%*
(XI) EDUCATIONAL LOANS w.e.f. April 01, 2001 SIZE OF LIMIT RATE INTEREST Upto Rs.25,000/Over Rs.25,000/- & upto Rs. 5.00 lacs Above Rs. 5.00 lacs 11.00% 12.00% 12.50% OF
(XII) LOANS TO LEASING AND HIRE PURCHASE COMPANIES/FIRMS/NBFC's Borrowers with "A+" Credit Rating Borrowers with "A" Credit Rating Borrowers with "B" Credit Rating Borrowers with "C" Credit Rating 15.50% 16.00% 16.50% 17.00%
107
(XIII) DIFFERENTIAL RATE OF INTEREST 4.00% (DRI) (XIV) CLEAN OVERDRAFT (w.e.f. April 01, 18.00% 2001) (XV) ADVANCES AGAINST BANK'S DEPOSITS
A) When the advance is granted against term deposits and the deposit stands in the name of: 1. The borrower singly or jointly; 2. One of the partners of the partnership concern and the advance is granted to the said concern; 3. The proprietor of the proprietary concern and the advance is granted to the said concern; 4. A ward whose guardian is competent to borrower on behalf of the ward and where the advance is made to the guardian of the ward in such capacity; The interest has to be charged at 2% over the Deposit rate with quarterly rests. B) Advance granted against third party deposits, to attract interest @ 2% over the Deposit rate or PLR whicever is higher. The above rates are applicable to advances granted upto 90% of the value of deposit (PRINCIPAL + INTEREST ACCRUED). Incase where drawings are allowed in excess of 90% of the value of deposit (PRINCIPAL + INTEREST ACCRUED) interest as applicable to clean overdrafts has to be charged on the portion exceeding 90% of the deposit. 108
109
ANALYSIS
110
FINDINGS AND RECOMMENDATION
For our analysis I have chosen ICICI, IDBI, HDFC bank as our competitor bank for comparison of J&K Bank with that of ICICI, IDBI, HDFC bank
Analysis 1
Bank Fixed Deposits
Bank ABN-Amro Bank Allahabad Bank American Express Bank Bank of Baroda Bank of India Bank Maharashtra Bank of Punjab Bank Rajasthan Canara Bank Bank Central India Centurian Bank Bank of of of
3.50 5.25 4.75 4.25 4.75 5.25 5.00 5.25 4.50

46-60 DAYS
3.50 5.25 4.75 4.25 4.75 5.25 5.00 5.25 4.50

61-90 DAYS
3.50 5.25 4.75 4.50 5.00 5.75 5.50 5.25 5.00

91-179 DAYS
3.503.75 5.75 4.75 5.25 5.50 5.75 6.00 6.25 5.75

1-2 YRS
3.75 5.75 5.00 5.50 5.50 6.00 6.25 6.00 5.75

2-3 YRS
3.75-4.5 NA 6.00 5.00 5.75 5.75 6.00 6.25 6.00 6.00

3-5 YRS
6.00 NA 5.75 6.00 6.50 6.25 6.00 6.00

>5 YRS
5.00 5.25
5.00 5.25
5.25 5.50
5.75 6.50
6.00 7.00
5.75 7.00
5.75 NA
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Citibank City Union Bank
3.75 6.00
3.75
6.00 5.00 5.00 5.75 5.50 5.75 3.75 4.75
61-90 DAYS
3.754.00 6.50 5.25 5.25 5.75 5.50 6.00 3.75 5.25

91-179 DAYS
4.50 7.50 5.75 6.00 6.50 6.50 6.50 4.004.75 5.75

1-2 YRS
4.75 7.75 5.75 6.00 6.50 6.50 6.50 5.00 6.00

2-3 YRS
NA 8.00 6.00 6.25 6.75 6.75 6.75
NA 7.50 6.00 6.25 NA 6.75 6.75
Corporation Bank 5.00 Dena Bank Dhanalakshmi Bank Federal Bank 5.00 5.75 5.50
Global Trust Bank 5.75 HSBC HDFC Bank Bank ICICIBank IDBI Bank Indian Bank Indian Bank Jammu Kashmir Bank Kotak Bank Oriental Bank of Commerce Punjab Bank South Bank Standard Indian National Mahindra & Overseas
3.75 4.50
46-60 DAYS
5.005.25 NA 6.00
3-5 YRS
NA
>5 YRS
3.50 5.00 5.00 5.00
4.00 5.00 5.00 5.00
5.25 5.50 5.25 5.50
5.75 5.756.00 5.75 5.75
6.00 6.00 5.75 5.75
6.00 6.00 6.00 6.00
6.00 6.00 * 6.00 6.25
5.25
5.25
5.50
6.00
6.25
6.50
6.50
5.00
5.00
5.25
5.75
6.00
6.00
NA
5.00
5.00
5.25
5.75
5.75
6.00
6.00
5.00
5.00
5.00
5.75
5.75
6.00
6.00
5.50 4.00
5.50 4.00
5.50 4.00
6.75 4.25
6.50 4.25
6.75 4.50
6.75 4.50**
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Chartered Bank Bank State India Tamilnad Mercantile Bank UCO Bank Union India United India United Bank UTI Bank Vysya Bank Western Bank of Bank of Bank of
5.00
5.00
5.00
5.50 7.257.50 5.75 5.75
5.75
6.00
6.00
6.25 5.00 5.00
6.25 5.00 5.00
6.50 5.25 5.00
7.25 6.00 5.75
7.00 6.00 6.00
7.00 6.00 6.00
5.00
5.00
5.25
5.75
6.00
6.25
6.25
5.00 4.50 5.00
5.00 4.50 5.00
5.50 5.25 5.35
6.50 6.00 6.15
7.00 6.00 6.00
7.00 6.25 6.00
7.00 6.25 5.50
In this table we see that J&K bank gives a higher rate to its customers then ICICIbank. The difference is more for lower period deposits but the margin difference of interest rate decreases as the period goes up. But it then also gives less interest rates then many banks.
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Analysis 2
Bank Bank of Baroda Birla Home Finance CanFin Homes Citibank Corporation Bank Dewan Housing Fin HDFC HSBC HUDCO ICICIBank IDBI Bank Indian Overseas Bank LIC Housing Finance PNB Housing Standard Chartered State Bank of India Tata Home Finance* Union Bank of India 5 years 10 years 15 years 20 years Floating 949 949 946 949 912 982 949 949 982 949 916 998 949 979 949 916 949 949
Fixed Floating Fixed Floating Fixed Floating Fixed 2,101 2,064 2,076 2,064 2,101 2,170 NA 2,112 1,322 1,281 1,308 1,294 1,299 1,327 NA 1,308 1,106 1,060 1,075 1,060 1,065 1,065 NA NA 1,059 1,025 999 NA 946 NA NA 998 966 NA NA 949 NA NA 1,066 1,013 965 932 1,116 965
2,049 2,037 2,150 2,088 2,088 2,076 NA 2,040
1,264 1,250 1,322 1,308 1,294 1,281 NA 1,253
1,105 1,090 1,075 1,059 NA 1,014
2,125 2,112 2,064 2,064 NA NA 2,052 2,088
1,335 1,307 1,280 1,280 NA NA 1,267 1,335
1,121 1,090 1,059 1,059 NA NA 1,029 1,105
2,112 2,064 2,157 2,143 2,100 2,064 2,076 2,064 2,312 2,113 2,088 2,076
1,363 1,267 1,357 1,328 1,294 1,208 1,267 1,253 1,475 1,308 1,322 1,308
1,137 1,059 1,128 1,096 1,075 1,059 1,044 1,029 1,224 1,060 1,075 1,059
J&K bank provides the following rates for home loans.

Duration of loan 1 - 5 Years Floating 9.25% 9.50% 10.00% Fixed 9.50% 9.75% 10.25%
6 - 10 Years
11 - 15 Years
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16 - 20 Years
10.25%
10.50%
Now we analyse that
ICICI, IDBI, HDFC bank provides 8.25% for 1-5 years where in
J&K bank provides loans at 9.25%.
ICICI, IDBI, HDFC bank provides 8.75% for 6-15 years where in
J&K bank provides at 9.50% and 10% respectively.
ICICI, IDBI, HDFC bank provides interest rate of 9% for 15-20

years where in J&K provides at 10.25%. So the rate of interest provided by ICICI, IDBI, HDFC bank is lower as compared to J&K bank. So to sustain the competition J&K bank should reduce the rate of interest.
ICICI, IDBI, HDFC bank also does a lot of promotional schemes

like 0% processing fee. 90% funding on DLF flats and others. This should also be done by J&K bank o promote its home loan product.
115
Analysis 3
BANKS SPREADING TO MAINTAIN SPREADS
In a falling interest rate scenario, banks are facing a tough task to maintain spreads. The yield on advances is falling and the deposits rates are down only marginally. Hence, the Net Interest income of the banks is under pressure. Due to a steep fall in interest rates in the economy, the yield curve has moved down by 3%. This has reduced the interest income and hence, the profits of the banks. The active management of the portfolio can improve the spreads. However, the yield on advances can go down further and hit the profits, as we are not expecting any upward movement in the interest rate scenario in coming years. Banks can reduce the deposit rates to improve the spreads, however, the banks can reduce the deposits rate up to a certain level. Recently, all the banks have reduced the deposit rates marginally by 25-50basis points but that is not sufficient. So, banks have to find ways to improve the spreads. In order to improve the spreads; banks are now focusing on the acquisition of low cost retail deposits. The cost of deposits of the banks with the higher proportion of the current and saving deposits is lesser than that of the other banks. In case of the UTI Bank, the percentage of the retail deposits is only around 17% and its cost of deposits is around 8%. The cost of deposits of IDBI Bank is 6.2% with 46% of retail deposits. The list of the banks with their retail deposits and the cost of deposits are as follows:
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Term Banks SBI HDFC UTI Bank Bank of Baroda Corporation Bank IDBI Bank Bank of India J&K Bank icici Bank (%) 65 59 83 67 74 54 67 66 84
Deposits C&S (%) 35 41 17 33 26 46 33 34 38
Deposits Cost of Deposits* (%) 7.1 6.2 8 6.6 7.2 6.2 5.9 7.3 6.5
*Average cost of deposits The banks are aggressively increasing their geographic reach. Nearly, all the banks are opening their branches and ATM centers throughout the country. This will help the banks to acquire the low cost deposit customers. From some hundred ATMs in the country, 23 years ago, the number has crossed 4,000 now. SBI has increased the number of ATMs to 1100 this year and is now the bank with the largest ATM network. The reduction in cost of deposits of the bank will ease out the pressure on the spreads side of the banks. We expect that in near future, the cost of deposits will go down further in the wake of acquisition of more retail deposits.
117
By this data we can see that the cost of deposit for J&K bank is very high as compared to other banks. The number of ATMs of J&K bank is also very low as compared to other banks. ICICI bank is the market leader in ATMs machines the followed by UTI bank.
118
SUGGESTIONS AND RECOMMENDATIONS

According to the research conducted my me, the Marketing Plan should include everything you do to get your customers to buy your product or service. This is often the weakest part of a business plan so it is important you spend enough time to get all of the research you need to complete it successfully. The Marketing Plan will include both your strategies for growing sales as well as the tactics you will employ to get there along with an overview of the competition in your market. The Marketing Plan section of a business plan is made up of five subsections: Target Market Services/Products Pricing Strategy Sales/Distribution Plan Advertising and Promotions Plan
119
Target Market According to the research you need to have an understanding of the size of the target market for your product and the niche you are trying to carve out for your business. Explain the type of person or business that is likely to buy your product or service and how large this market is. Be sure to describe your direct competition, but don't forget your indirect competition. Your indirect competitors are the businesses that sell a product that is not the same as yours but could be used as an alternative by your customer. For example, if you want to open an ice cream store, your competition will not only be other ice cream shops, but also the candy store down the street that offers an alternative to satisfying your customer's sweet tooth. Or a better example is IDBI is not the biggest player in home loans but then also J&K bank should not ignore this bank. the biggest competitor is ICICI bank in the home loan sections. The Target Market section should cover the following: Outline your target market. Include demographics statistics such as their age, gender, where they live, income etc. Also explain the psychographics of your target market. What do they have in common? What motivates them? Estimate the total size of the target market for your product or service in terms of gross sales and units of product or service sold. What trends are affecting the target market for your product or service? Consider industry trends, socioeconomic trends, government policy, and demographic shifts.
120
Summarize your competition. Includes estimates of their market share, and your sense of their financial health. Compare their product or service to yours in terms of quality, price, service, warranties, image, etc. Include both your direct competition and your indirect competition. Services/Products Your marketing strategy should communicate what makes your product or service unique. It is important to describe both the features and the benefits of your product or service. Features are descriptive attributes of your product such as the colour, weight, etc. The benefits describe what good things the customer will enjoy by using your product or service (e.g. save time, save money, feel better etc.). Your Services/Products section should cover the following: What is the one thing above all else that makes your product or service unique? What other features does your product or services have? Consider packaging, quality, price, service, etc. What benefits will your customers enjoy by buying your product or service? Will they save money, feel better, be smarter, etc.?
121
Pricing Strategy An important part of J&K banks strategy should be to determining how you will price your product or service or what should be the interest rate to be finalised. The secret here is to establish a reasonable base price that will enable you to make a fair profit. You may believe the easiest route is simply to set your prices in accordance with those of your competitors. That's not always wise. Before you set a base price, you have to look at your own objectives and special considerations. The Pricing Strategy section should cover the following: What is your base price and how did you arrive at this figure? Provide a brief summary of your fixed and variable costs. How are similar products and services priced? Explain how the price of your product or service will compete with market prices. If your price is higher, why would a customer choose your product? Do you offer superior service or a higher quality product? If your price is lower, how are you able to charge less - is the quality different, is your production process more efficient, do you sell in large volumes? What do your costs include? Are you offering discounts to students or seniors or for those who pay in cash rather than by credit? Are you allowing trade-in, a layaway policy? What kind of a return are you looking for in your investment and how soon are you anticipating recouping your investment?
122
Sales/Distribution Plan Your Sales/Distribution Plan should detail how the transaction between you and your customer will take place. The number of ATM machines should be increased. It should include a discussion about how you plan on selling your product or service and it should outline all of the different people and companies involved in getting your product into the hands of your customer. You should explain in detail what type of distribution channels are available to you (account representatives, sales people, Internet, delivery services, other companies that will carry your product) what benefits you will have by choosing them and the length of time it will take to get your product to your customer. Don't forget to summarize your returns policy and describe any warranties or after-sales support you will offer customers. Your Sales/Distribution Plan section should cover the following: How will you distribute your product or service? Will it be by mail, through a wholesaler, through retail, through a Website, an independent sales representative etc.? Outline all of the players or technology involved in getting your product/service to the end customer. How can customers pay for your product? What credit terms will you extend to your customer? Include any discounts you will offer for early payment or penalties for late payment. Describe your return policy, service guarantees and/or any
warranties you intend to offer customers.
123
What after-sales support will you offer? Will you charge for this service? Advertising and Promotions Plan Your Advertising and Promotions Plan must detail how you are going to communicate to your customers and prospects. There are many ways your business may communicate including advertising, public relations, brochures, a Website, trade shows, etc. If possible, include an example or mock-up of your communications pieces. Your Advertising and Promotions Plan should cover the following: Describe how or if you will advertise your product. Include what medium you will use (i.e. direct mail, Internet, radio, television, etc.) How much will this cost? How much business do you anticipate this will bring in? Describe what plans you have to generate press for your business. What type of media will you target? What kind of marketing material will you produce? Include
brochures, sell sheets, business cards, etc. Will you have a Website? If so, describe how you will use it to market your business. What other forms of marketing will you use? Consider trade shows, telemarketing, etc.
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CONCLUSION
1. The advertisements should be increased by Punjab & sind bank, as ICICI, IDBI, HDFC bank does. ICICI, IDBI,
HDFC bank is becoming a market leader just due to the

advertisement. When ever some one think of home loan or car loan the first thing which come in mind is the best deal advertisement. ICICI, IDBI, HDFC bank is getting it brand recall strong. So Punjab & sind bank should also follow on the same path way. 2. The sales and distribution should be improved. The bank should try to grab the market which is untouched, or which is not yet exploited. Like for example student account at zero balance. 3. Punjab & Sind bank should get more into promotional schemes, Like other banks. 4. The rates by Punjab & sind bank should be lowered for asset products and higher for liability Products.
125
ANALYSIS
SOCIAL ANALYSIS
1. With the change in lifestyle of the people, people are becoming more aspirational and thus are looking at cars as not a luxury item but a necessity item. 2. Concept of one car per family has become outdated. Now a days family have more than one car. 3. People are open to taking loans which is a positive scenario.
TECHNOLOGICAL ANALYSIS
1. The company needs to be open to an idea of using technology in positive way Ex. Internet. 2. The industry is already using concept of on line acceptance of loan application and new entrant has to keep in mind this consideration.
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ECONOMICAL ANALYSIS
1. As the Indian Economy is supposed to improve, sale of cars will increase. 2. Companies are under pressure to meet their targets and for that they are coming with new schemes. 3. As auto sector is one of the sector which holds key to economy progress government has been given incentive to auto manufacturing like low custom duties.
POLITICAL ANALYSIS
1. As the government is covering down rate of interest people are preferring to spend money in creating assets instants of putting it in banks or financial institutions. 2. RBI has reduced interest rates due to which banks are open to gives interest rates at lower rate.
127
BIBLIOGRAPHY
J & K Bank Annual Report 2002-2003 NSDL site. NSDL CD. NSE site. Book on Depository. HSBC site. HDFC site. Global Trust Bank Site. IDBI site. ICICI site Standard Chartered Bank site. J & K Bank site. www.ikbdp.com Research Methodology by M.N Mishra. Marketing Research by C.R. Kothari. Marketing Management by Phillip Kotler
128
PROJECT REPORT ON
MARKETING OF FINANCIAL SERVICES
FOR JAMMU & KASHMIR BANK LIMITED
Session 2002-2003
Submitted to: Mr. G.k. Sharma
Submitted by: Intsar Ali Roll No. MBA/IND/WB01 /2040 IMBA Session 2002-2003
AMERICAN TECHNICAL & MANAGEMENT UNIVERSITY NEW YORK (USA)

129
PROJECT REPORT ON
MARKETING OF FINANCIAL SERVICES
FOR JAMMU & KASHMIR BANK LIMITED
Session 2002-2003
Submitted to: Mr. G.k. Sharma
Submitted by: Ramneek Sharma IMBA
AMERICAN TECHNICAL & MANAGEMENT UNIVERSITY NEW YORK (USA)
130
ACKNOWLEDGEMENT
This
project
titled
Marketing
of
Financial
Services,
is
undertaken by me as a part of my IMBA FROM American Technical & Management University, New York (USA). At the outset on the completion of this project, I am indebted to respected, for giving me the opportunity to work on this project. Then I express my gratitude and thanks to my project guide. Mr G.K SHARMA AND MR VIJAY KUMAR SHARMA; who has been an anchor sheet for driving this project to success. Last but not the least, I am thankful to all the BANK who cooperated with me by providing a part of their valuable time to answer my questions.
131
TABLE OF CONTENTS
SL. No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14 Introduction Objective of study Historical background Share capital & reserves Deposit Investment Profitability Board of directors Financial Analysis Types of Deposits Loans Depository services schemes from J & K bank ltd. Research Methodology Data collection competitor analysis (ICICI, IDBI, HDFC Bank) 15 Findings (J & K Bank of Punjab complete bond issues) 16 17. 18. Analysis Suggestion and recommendation Conclusion 110 120 126 96 Topic Page No. 1 4 5 7 9 12 13 14 16 17 36 50 51 53
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19
Bibliography
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133

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INTRODUCTION

OBJECTIVE OF THE STUDY

HISTORICAL BACK GROUND

SHARE CAPITAL & RESERVES

BOARD OF DIRECTORS 1. Mr. M. Y. Khan Chairman

4. Mr. J. B. Bhoria Regional Director, RBI Rail Head Complex, Jammu

11. Mr. Mohd. Yasin Mir

12. Mr. Bansi Lal Dogra

Mr. Parvez Ahmad Secretary to Board

Customer Friendly & Value Added Schemes

RECURRING DEPOSIT SCHEME

MONTHLY YIELD DEPOSIT SCHEME

JANAPRIYA JAMMA YOJNA SCHEME

Who Can Invest:

GOLDEN DEPOSIT SCHEME

AWAMI BACHAT CERTIFICATE SCHEME

DEPOSITORS PENSION SCHEME

SAVINGS BANK DEPOSIT SCHEME

7.50% 8.00% 8.33%

MILLENNIUM DEPOSIT SCHEME

As applicable from time to time.

Blind Persons. Associations, Clubs, Societies, Trusts etc. Loan Facility:

CHILDCARE DEPOSIT SCHEME

CHILDCARE DEPOSIT SCHEME

Computer Washing Machine Color TV -Airconditioner and more...

CONSUMER DURABLES LOAN

For General Public

Over Rs.25000/= Over Rs.25000/= professionals /Engineers/ Accountants /

13 % p.a S.E for Doctors Chartered Architects /

h)Approved Consumer Durables : ITEMS Max . Finance

Min.Net Salary / Income i) Computer ( P.C ) Rs.40,000/=Rs.5,000/= Rs.30,000/=

HOUSING LOANS Salient Features: a) Quantum of loan

with min. 5 years service. Businessmen with min. 5 years standing.

loans/disbursements only. Revised interest rates w.e.f. 15-01-2003

moratorium in equal monthly Installments.

g) Processing charges 0.25% of loan amount

MINIMUM LOAN AMOUNT:MAXIMUM LOAN AMOUNT:

Rs.2.00 lacs Rs.10.00 lacs.

Loans and Advances

RATE OF INTEREST 13.5%

INSURANCE POLICIES/ UTI UNITS ETC. (X) HOUSING FINANCE

RATE OF INTEREST 11.00%* 11.50%* 12.00%*

When the advance is granted against term deposits and the

a) SECONDRY DATA b) PESONAL VISITS

DATA COLLECTION FOR COMPETITORS ANALYSIS

ICICI, IDBI, HDFC BANK

You must be at least 21 years of age when the loan is sanctioned.

You must be employed or self-employed with a regular source of income.

You must be at least 21 years of age when the loan is sanctioned.

You must be employed or self-employed with a regular source of income.

The purchase of the land must be for the construction of a house.

The plot of land must be clearly demarcated with clear boundaries.

Office premise loan

You must be at least 21 years of age when the loan is sanctioned.

lawyers, chemists) can apply.

A minimum of 3 years work experience is a must. 54

Loan against property

You must be at least 21 years of age when the loan is sanctioned.

Your must be employed or self-employed with a regular source of income.

You must be the owner of a self-occupied property.

Fixed Rate Loans:

Promotions schemes by ICICI bank