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Finance is the set of activities dealing with the management of funds. More specifically, it is the decision of
collection and use of funds. It is a branch of economics that studies the management of money and other
assets.

Finance is also the science and art of determining if the funds of an organization are being used properly.
Through financial analysis, companies and businesses can take decisions and corrective actions towards the
sources of income and the expenses and investments that need to be made in order to stay competitive.

Finance is the life blood of business. It flows in mostly from scale of goods and services. It flows out for
meeting various types of expenditure. The activating element in any business which may be on industrial or
commercial undertaking is the finance.

Business finance has been defined as those activities which have to do with the provision and management
of funds for the satisfactory conduct of a business. Business finance is defined as that business activity
which is concerned with the acquisition and conservation of capital funds in meeting the financial needs and
overall objectives of business enterprises.

So we can say business finance is mainly developed around three major objectives.

Firstly, to obtain an adequate supply of capital for the needs of the business,

Secondly, to conserve and increase the capital through better management,

Thirdly, to make profit from the use of funds this is an overall objective of a business enterprise.

Before industrial revolution, finance was not of much importance. The methods of production were simple.
For example, the artisan used to work in open small hut. He had simple tools mostly made by himself.
Labour at that time was more important than capital and finance did not pose any problem. Production in
those days was, therefore labour intensive.

*Information has been collected from the website www.google.com

  
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The financial system or the financial sector of any country consists of specialized and non-specialized
financial institutions of organized and unorganized financial markets of financial instruments and services,
which facilitate transfer of funds procedures and practises adopted in the markets and financial
interrelationship, are also part of the system. The structure of a financial system in any economy is as
follows:

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In these markets consist of many lenders, indigenous bankers, transfers and private chit funds etc. whose
activities are not controlled by RBI. Recently the RBI has taken steps to bring private function companies
and chit funds its strict control but using non banking financial companies directions in 1998.

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In these markets there are standardized rules and regulations by Reserve Bank of India or other
regulatory bodies. The organized markets can be further classified into two. They are:

1)p dapital markets.


2)p Money markets.

 
à : It is a market for long term funds which have a long or indefinite maturity. dapital
market further divided into three mainly:

a)p   It is a market for industry security namely equity shares or ordinary
shares, preference share, debentures or bonds. It is a market where industrial concern raises their
capital or debt by assuring appropriate instruments. It can be further subdivided into two. They are:

p Primary market: It is a market for new issue or new financial claims.


p Secondary market: It is a market for existing securities and those already issued and quoted in
stock exchange


*Information has been collected from the book A Hand book of banking by N. S. Toor

  
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b)p !" Ã It is also called gilt-edged securities market. It is a market where
government securities are traded (long term securities)


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A financial instrument refers to these documents which represent financial claims on assets.
Financial instrument can also be called financial securities. These instruments are classified into
#p à   Shares and debentures issued directly to Public.
b)p      These securities issued by some intermediaries ex; UTI and
Mutual fund again these securities may be classified on the basis of duration as follows.
p $!   ëithin one year ex; bills of exchange.
p à  Maturity period between 1-5 years ex; debentures.
p
!%   Maturity period more than 5 years ex; Gilts.


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#p à '  (  A merchant banker is a financial intermediary who helps to transfer
capital from those it to those who needit.
)#p
    Much number of banks joins together and forms a syndicate to provide
loan as big sum to corporate
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  A lease is an agreement under which a company acquires a right to make use of capital
assets like machinery for agreed period in return for periodic payment of rentals
d)p ' ' It is an agreement relating to transaction in which goods are let on hire.
#p   It is an agreement under which a financial intermediary assumes the credit risk in
the collection ofbook debt passes for its client.
*#p &     
 A venture capitalist finances a project based on the potentialities of new
innovative projects for new entrepreneurs
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    A mutual fund refers to a fund raised by a financial services company by
pooling the savings of the public

  
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Banking is one of the most important sectors of business and finance that assists the world of commerce to
keep on running. ëithout banks and the banking services that they provide, commerce and trade would
collapse and credit would become virtually extinct. As the decades progress many new concepts are being
introduced into banking. At their most basic, banks hold money on behalf of customers, which is payable to
the customer on demand, either by appearing at the bank for a withdrawal or by writing a check to a third
party. Banks use the money they hold to finance loans, which they make to businesses and individuals to pay
for operations, mortgages, education expenses, and any number of other things. Many banks also perform
other services for a fee; for instance they offer certified checks to customers guaranteeing payment to third
parties. In some countries they may provide investment and insurance services. ëith the exception of
Islamic banks, they pay interest on deposits and receive interest on their loans. Banks are regulated by the
laws and central banks of their home countries; normally they must receive a charter to engage in business.
Banks are usually organized as corporations.

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An organization, usually a corporation, chartered by a state or federal government, which does most or all of
the following: receives demand deposits and time deposits, honours instruments drawn on them, and pays
interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes;
certifies depositor's checks; and issues drafts and cashier's checks.

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Banks are classified into various types based on the function they perform. They are as follows:

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dommercial banks perform all the business transactions of a typical bank. They accept saving
bank deposits, fixed deposits and current deposits which are repayable on demand or on short notice.

*Information has been collected from the book A Hand book of banking by N. S. Toor

  
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Likewise, they lend or invest only for short durations. They provide funds only for short term needs
of trade and commerce. These banks cannot invest credits and overdrafts as they are expected to meet
the immediate requirement of depositors. The commercial banks provide a vital service to its
customers, a simple means of medium of exchange called cheques. They also perform a large number
of agency functions to their customers for which they charge a commission.

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Investment banks, also called industrial banks, are those banks which provide funds on a long
for industries. They are specialized in providing long term loans to industries with a view to buy
plant, machineries, etc. These banks obtain funds through share capital, debenture and long term
deposits from the public. The bank floats bonds for the sake of mobilizing funds to provide funds for
big industrial corporations. They also underwrite or issue new shares and debenture of industrial
companies. They also purchase entire issue of new securities of company and later sell them to public
at higher prices.
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Úxchange banks are known as foreign banks or foreign exchange banks. These banks also
provide foreign exchange for import trade. Their main function is to make international payment
through the purchase and sale of exchange bills. The exchange bank provides assistance in the
conversion of currencies. They discount foreign exchange bills which are used in foreign trade

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ppppppppppppppp do-operative banks are performed to meet the meet the banking requirements of consumers.
They are established in urban as well as rural areas. In rural areas, the bank provides finance to
agriculture and in urban area it provides finance to buy consumer goods. These banks function like
commercial banks receiving deposits and lending money. They provide short and medium term loans.
As they are formed on cooperative principles, they are more service oriented rather than profit. The
bank provides credit at lower rates of interest to people of small means like small cultivators,

  
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artisans, petty shop-keepers etc. They have been classified into land development banks or land
mortgage banks and urban credit-oriented banks.

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Savings banks are specialized financial institution establishment to mobilize savings from
the people. They pool the savings of the small incomes of the community. The savings banks
accounts have been provided by all commercial and co-operative banks and even post offices. Saving
bank business has become more prominent than others forms of accounts as it provide various
facilities like frequent withdrawals, attractive rate of interest, the use of cheques etc.

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 dentral bank is an apex bank in the country. It brings the entire banking system unified,
controlled and regulated. It is the main source of an efficient banking system in the country. The
monetary policy of a country is formulated and enforced by the central bank. It is responsible for
monetary stability in the country. The expansion and contraction of note issue are managed by the
central bank. It functions as a banker to the government and commercial banks. It assists the
government in the implementation of various economies policies.

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ppProf. Sayers in his book µModern Banking¶ has described the functions of a modern bank in the following
words: ³Ordinary banking business consists of changing cash from bank deposits and bank deposits for cash,
transferring bank deposits for cash, transferring bank deposits from one person to another and giving bank
deposits in exchange of bills of exchange, government bonds, the secured promises of businessmen to repay
and so forth.´

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ppppppThe major function of the commercial banks is accepting various types of deposits such as fixed
deposits, current deposits and savings deposits. People want to keep their cash balances safe for which they
deposit it with a bank. The commercial bank protects the cash of the customers and provides a convenient
method of transferring funds through the use of cheques. It is the obligation of bank to honour cheques
drawn upon the bank, making payment across the counter on demand by the customers to the extent of
money available at the credit of customer¶s account
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ppppppp pA fixed deposit is one where a customer keeps a certain amount of money in a bank for a
specific period. It may be 6months, 1 year, 2 years 3 years or 5 years. The fixed deposit is not
expected to be withdrawn before the expiry of the period.
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Saving deposits are those deposits on which the bank pays a certain conditions. The customers
are expected to maintain a minimum balance in the account.

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durrent deposits are those deposits which can be withdrawn at any time by means of cheques.
The bank does not pay interest on current deposit. A customer who opens a current account has to
*Information has been collected from the book A Hand book of banking by N. S. Toor

  
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maintain a minimum credit balance of Rs. 500. At the same time current holders has to pay service
charge


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ppppppppp ppppThe second main function of the commercial banks is to provide loans and advances out of the
money the bank receives by the way of deposits. The bank receives deposits in order to lend the same. It is
this function of a banker¶s activities which is the largest contributor to the bank¶s profit. dommercial banks
provide various types of loans such as direct loans, cash credit, bills discounted and overdrafts etc. Direct
loans and advances are provided to all types of persons against the security of movable properties.

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Another important function of a banker is the services offered by them as an agent. The commercial banks render
a significant service by providing to its customers a simple means of medium of exchange called cheques. The cheque
system is considered to be the most developed type of credit instrument. The banks perform miscellaneous functions
such as undertaking the payment subscriptions, insurance premium, rent, etc. On the behalf of the customers they
collect cheques, bills, salaries, pensions, dividends, interests, etc that belongs to the respective accounts of the
customers. The banks perform these functions as per the instructions given by the customers and make payments as
and when directed. For these services they charge a certain amount of fee by means of commission

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pppppppA banker performs many general utility personal or miscellaneous services for his customers. The
general utility services include the safe- keeping of valuables and documents, the issue of credit instrument
for easy transfer of funds, collection of credit information regarding the customers, transaction in foreign
exchange and provision of specialized advisory services to the customers

  
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Banking is an ancient business with its history dated back to the 13th century. ëhen the first bill of exchange
was used as money in the medieval trade. Banking in India as its origin as early has the Vedic period. During
the days of east India dompany, it was the turn of the agency house to carry out the banking business. The
general bank of India was the first joint stock bank to be established in the year of 1886. The others that
followed are the Bank of Hindustan and the Bengal Bank. In 1891 the first purely Indian Bank that is United
dommercial Bank came into being. The setting up of Punjab National Bank in 1894 followed it. In 1920,
three bank namely Bank of Bengal (1809), Bank of Bombay (1840), Bank of Madras (1843) were
amalgamated and a new bank, Imperial Bank of India was established. The Reserve Bank of India, which is
the dentral bank, was created in 1935, with the passing Reserve Bank of India act in 1934. Later with the
passing of State Bank of India in 1955 the undertaking of Imperial Bank of India was taken over by newly
constituted State Bank of India. In the wake of Swadeshi Movement in 1905 no. of Bank with Indian
Management were established in the country namely Punjab National Bank Ltd. The Bank of Baroda (1908),
Bank of India (1906) danara Bank Ltd. Indian Bank Ltd, dentral Bank of India Ltd. (1911). ON July 19th
1969, 14 major Banks of the country were nationalized and on 15th April 1980 six more dommercial Private
Banks were also taken over by the government of India. Banking Industry has achieved a tremendous
progress during the past few years; many Banks and Financial Institution haveentered into the market and
have made a rapid growth towards achieving the ultimate object of attaining leadership in Banking Industry.

p Information has been collected from the website www.wikipedia.com 

  
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The Indian Banking System can be broadly classified into:

1)p Nationalized (Government Owned)


2)p Private Banks
3)p Specialized Banking Institutions

The RBI as a centralized body monitoring any discrepancies and short coming in the system. Private
Banks has been fast on the uptake and are reorienting their strategies using the internet as the
medium.

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A radical re-structuring of the economic system consisting of industrial deregulation. Liberalization
of policies relating to Foreign Direct Investment (FDI), Public Únterprise Reforms, of taxation
system, trade liberalization and financial sector has been initiated in 1992-93. Financial sector
reforms in the area of commercial banking, capital markets and non-banking finance companies have
been undertaken Improving financial sounds and credibility of banks is a part of banking reforms
undertaken by the RBI, a regulatory and supervisory agency over commercial banks under the
Banking companies Regulation Act 1949. In the areas of capital markets of SÚBI was set up in 1992
to protect the interest of the investors in the securities and to promote development and regulation of
security market. In regard to non-banking finance companies the RBi has issued several measures
aimed at encouraging disciplined NBFd¶s, which run on sound business principles. The economic
reforms also aimed at improved financial viability and institutional strengthening, to improve the
effective implementation of monetary policy, linkages among money anf foreign exchange markets
have been enforced.





  
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dommercial Banks are playing a crucial role in the economic development of the country. In
fact, without the development of commercial banking in 18th and 19th centuries. In the modern
economy, banks considered not only merely as dealers in money but also as reservoirs of resources
necessary for the economic development.

Banks provide short-term loans which serve as a capital for industrial establishment. Banks
also create credit, which enables the industry and commerce to expand economic activities. Banks
are contributing very significantly for the expansion of industrialization. Úxpansion will provide
more funds for the entrepreneurs to start new industries, which results in more employment and
income generation. A very important service that banks render to the community is the creation of
demand deposits in exchange of debts of short-term and long-term securities. Banks promote capital
by means of pooling of savings from people. These are the important services rendered by the bank

  
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After the nationalization of some big commercial banks in India, there has been an immense
growth in banking industry with the establishment of more number of banking offices. Today the banking
business has become very competitive. Various types of banks provide large number of services not only on
national but international ground as well. The growing trade and commerce has made banks to modernize
their operations in order to satisfy the customers. Indian banks have also felt the need for modernization of
their operations like their counterparts in western countries. This was very essential as well to deal with
extremely increased volume of business in an appropriate and efficient manner and to do effective business.
Modern banking institutions have sought to automation like introduction of computers and other equipments
as well as the wealth of information technology.

³The major objective of modernizing banking system is to improve bank operations while maintaining

high level of standards in banking sector.´ p

Banks are viewed as development agents instead of providers of credit to large industries and big business
companies. In India, the banks apart from providing credit to agriculture, trade industry and commerce are
offering a large number of services to the customers. They make payments, collects electricity and water
bills, telephone bills, take buy and sell decisions on behalf of their customers and so on.

Today more and more number of business functions is entrusted on banks. They provide their services to
labourers, petty wage earners, small traders, etc. ëith the appearance of modern banking system, the rural
credit system with the money lender nearly collapsed.

The modern banks have developed strategies to meet the requirements of common men in achieving
economic and social development.

  
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In the history of commercial banking, the nationalization of the Imperial Bank of India was a great
achievement. In February 1969, the social control of commercial banks came into force. The government
made suitable organizational changes in order to implement the provisions of the Amended Act. The banks
were directed to grant loans to agriculture, small scale industries and self employment in an increasing
manner. The boards of managements of bank were reconstituted. Yet the industrialists who were on the
Board of management continued to exert their influence on the lending policies of the big banks. The
Reserve Bank of India started exercising its power to direct the banks when necessary to adopt new
regulations. In fact, the social control was in stage of infancy. The government felt that that the social control
was not sufficient in a planned economy. The government further said that under the private ownership,
social objectives cannot be achieved. Therefore on 19th July 1969, the government announced the
nationalization of 14 major banks, whose deposits were not less than 50 crores, through an ordinance. The
14 banks controlled 72 percent of total scheduled bank deposits. The banks that were nationalized are as
follows:

1.p The dentral Bank of India, Ltd.

2.p The Bank of India, Ltd.

3.p The Punjab National Bank, Ltd

4.p The Bank of Baroda, Ltd

5.p The United dommercial Bank, Ltd.

6.p danara Bank, Ltd.

7.p United Bank of India, Ltd.

8.p Dena Bank, Ltd.

  
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9. Syndicate Bank of India, Ltd.

ppppp 10. The Union Bank of India, Ltd

11. Allahabad Bank, Ltd.

12. The Indian Bank, Ltd.

13. The Bank of Maharastra, Ltd.

14. The Indian Overseas Bank, Ltd.

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ppppppppppppppppppp As stated in the Act, the objective of nationalization is to control the heights of the economy
and to meet gradually and enhance the needs of other development of the economy with respect to National
Policy and the objectives. Úxcept this main objective, other specific objectives were:

p Removal of the control of banks by a few persons

p Provision of adequate credit for agriculture

p Small scale industry and exports

p Professional outlook to bank management

p Úncouragement of new classes of entrepreneurs

p Provide adequate training to staff

The government said that nationalization is a major step in the process of public control over the principal
institution. This would mobilize the people¶s savings

  
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and direct it towards productive purposes. After the nationalization the banks will be more focused on the
serving farmers, promoting agricultural production and developing rural sectors. Public ownership of
banking will utilize the credit facility towards speculative and other unproductive purposes. Nationalization
will also bring right atmosphere for the development of an adequate amount of professional management in
the field of banking.

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dontinuing the policy of nationalization, in 1980 the government nationalized six more banks. They were the
Andhra Bank, the dorporation Bank, the New Bank of India, the Oriental Bank of dommerce, the Punjab and
Sind Bank and the Vijaya Bank. By nationalization of these banks, the government has been able to exercise
control over 91 percent of the resources of the entire banking system. Remaining 9 percent is held by foreign
banks and private sector banks.ppppppppppppppppppppppppppppppppppppppppp

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After nationalization, the government introduced suitable administrative changes to implement the
objectives enshrined in the Act. The banks started diversifying lending policies. Government set up different
department to handle the proposals. Training centres were established to train the staff. Field officers were
recruited to make contact with the prospective customers. Since nationalization, the performance of banking
system is outstanding in a lot of respects.p

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The RBI was established on 1st April 1935 under the reserve bank of India act, which was passed in the year
1934. The reserve bank of India is the central bank of our country. The RBI was started originally as a
scheduled bank and its paid up capital was Rs.5 crores. ëhen RBI was established, it took over the function
of currency issue

p Information has been collected from the website www.rbi.org.in

  
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The reserve bank of India was nationalized in the year 1948. The instruments used by reserve bank of India
are.

p Bank rate
p Open market operations
p Variable cash reserve requirements.

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p The reserve banks of India issues and regulates the issue of currency in India.
p The RBI acts as banker to government. The RBI looks after the derent financial transactions of
the government and manages the public debt of government
p The RBI acts as banker to the commercial bank. dommercial banks keep and maintain their
accounts with the reserve bank of India. dommercial bank keep deposits with RBI and they
borrow money from RBI when necessary. RBI acts as lender to last resort to commercial banks.
p The RBI exercises the control over the volume of credit created by the commercial banks in
order to ensure price stability

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p The RBI established the bill market scheme in 1952.

p The RBI has tried to help the establishment of financial corporation to provide credit to the
agricultural sector of the economy.
p The RBI has promoted regional rural banks with the help of commercial banks to extend
banking facilities to rural areas.
p The RBI has taken steps to enable the commercial banks to open branch in foreign countries.
p The RBI encourages and provides research in areas of banking

  
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One of the primary functions of the commercial bank is µlending¶. Through lending commercial banks meet
their objective of making profits. The deposits collected from the public cannot be kept idle. It has to be
utilized in order to derive benefits out of it. The bank collects deposits with the objective of lending and
makes profit out of the interest received and paid. Their main aim is to deal in money and provide for those
who need it. The banker performs the job of lending within the framework of statues governing the banking
business, the government policy and guidelines issued by the authorities of the country (RBI in India).The
basic objective of nationalization of commercial banks was to provide funds to the neglected sectors like
agriculture, tiny industries and other weaker sections of the society. Today nearly 40% of the total
commercial bank advances are the priority sectors. Greater part of the commercial bank funds are employed
in the form of loans and advances. Loans bring good money to the bank in the form of profit by charging
interest. Lending function of a commercial bank benefits the bank in the form of profit and the one who
takes loans enjoy the benefit of money required for their activities. The wheels of industry cannot run
without the bank advances. The bank needs to assess the condition of industry or trade or any business
enterprise while making advances

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dommercial banks are the most important source of short-term capital. The major portion of working capital
loans are provided by commercial banks. They provide a wide variety of loans tailored to meet the specific
requirements of a concern. The different forms in which the banks normally provide loans and advances are
loans and advances are loans, cash credit, overdrafts, purchasing and discounting of bills.

 

ëhen a bank makes an advance in lump-sum against some security it is called a loan. Here, a specified
amount is sanctioned by the bank to the customers. The loan amount so sanctioned is paid to the borrower
either in cash or by credit to his account. A certain amount of interest has to be paid by the borrower for the
loan that has to be borrowed. A loan can be repaid in lump-sum or in installements. dommercial banks
generally provide short term loans up to one year for meeting the working capital requirements. But these
days, term loans exceeding one year are also provided by banks. The term loans may be either medium term
or long term loans.

  
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dommercial banks normally provided short term financial assistance to industrial sector. The assistance
provided by them provided by them fulfilled the working capital requirement of the industrial enterprises. A
massive investment in industries during second plan and after changed the priority of bank lending. The
industrial required high funds for long term financing. The financial institutions failed to meet the increasing
demands of the industries. Then the entry of commercial banks came into existence and filled the gap
between the demand and supply of long term requirements. The banks started giving term loans to meet the
long term needs of the industry. The refinance scheme of IDBI encouraged more term lending by
commercial banks. The commercial banks are assisting industrial units by granting term loans, subscribing
to shares and debentures of corporate units and underwriting securities issued of these companies.

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General Lending Policy in Relation to the business of the borrowers and the purposes for which the advance
is required. In handing a proposal relating to a particular nature of facility, apart from the general guidelines
that have given, the branches should refer to the detailed instruction as contained in the respective instruction
circulars so as to ensure that all instructions relating to a particular type of advance are compiled with. The
bank sanctions various kinds of clean / unsecured credit facilities as well as secured credit loans, details of
which the security there for and the security documents to be obtained are elaborately explained in the
security documents to be obtained are elaborately explained in the guide documentation.It is the nature of the
business of the borrowers. In handling a proposal relating to a particular nature of , apart from the general
guideline that have been given, the branches should refer to the detailed instructions as contained in the
respective instruction circulars so as to ensure that all instruction relating to a particular type of advances are
complied with.

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Purchase of house/flat, construction of house/ flat , repairs/improvement/extension, Repayment of loan
availed from other agency/bank/NBFd. Indian citizen not below 21 years, singly or jointly with other co-
owners. Maximum Rs.50 lacks depends on repayment capacity subject to net, take home salary

  
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being35% of gross income. Maximum Rs.10 lacks for repairs. However, maximum loan amount in
Mumbai and New Delhi may be considered up to Rs.50 lacks. Maximum amount of loan may be
calculated 4 times the annual gross salary or 5 times the annual net salary of the applicant and his/her
spouse whichever is higher in the case of salaried people. The margin for purchase of new
house/flat/construction 15% of cost. And for repair 30% of cost.

1.1pSecurity Document
p Úquitable Mortgage or simple mortgage of house/flat.
p If under construction, interim security in the form of LId/shares/national savings
certificate/Kissan vikas pattra/ mortgage of other property.
p One/two guarantors whenever possible.
p Loan agreement.
p Letter of authority to employer in case of salaried employee.
p Letter of guarantee.

Repayment of moratorium upto18 months. Maximum period should not exceed 15 years and 10 years
for house repairs in equated monthly instalments. Free insurance benefits such as insurance of property
against fire allied perils including earth quake and personal accident (death) as per negotiated terms and
conditions to be offered.

Other conditions finance can be extended for purchase of existing flats/house of not older than 15 years.
House loan outside salaried sector can be granted only to income tax assesses in urban areas.

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Purchase of new two/four wheeler for personal/professional use. Purchase of old cars of less 3 years old.
The eligibility is 18 years and above. Permanent employee of central state/defence/police/force/
autonomous bodies/public or joint sector under taking/ reputed firms/ Ústablished Úducational
Institutions. Professionals having regular income. Net take home pay (after deduction of instalment) is
rs.2500 for 2 wheeler & branch and irrevocable letter from employer to remit instalments to bank till
liability is liquidated. The borrower should be customer of the bank.Loan amount will be three times of

  
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net income/net annual salary subject to maximum of rs.10 lacks 2of the cost of new vehicle. 50% for old
cars certified by a reputed automated certification agency. The security document should be
Hypothecation of vehicle financed by the bank. Bank¶s lien to be noted with the Transport Authorities.
Guarantee of the spouse. In case unmarried third party guarantee of sufficient means D.P note letter of
guarantee hypothecation of vehicle.

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To meet requirement for buying and selling securities by offering 2 way quotes. The eligibility for the
market marker who are having minimum net worth of rs.1 crore and are approved by SÚBI(Securities and
Úxchange Board of India) stock exchange. The loan amount for 3 times the net worth or rs.5 crores
whichever is lower. Advance should be fully secured by way of collateral security in the form of immovable
property or any other security in addition to the securities which are held as part of Market Making operation

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To establishing a new industrial unit or for expansion of the existing unit or for modernization, a detailed
project feasibility report should be obtained. Industrial concerns are usually limited companies or public
sector undertakings, although individuals or partnerships owning small and medium industries cannot be
riled out. An industrial concern may be engaged in more than one industrial activity and may also be
engaged in other activities such as trade, import, export etc. if the borrower is engaged in more than one type
of activity for which finance is required. dredit facilities may be extended by way of cash credit/bills
discounting for working capital and by way of term loans for acquiring capital assets namely, construction of
factory building purchase and installation of machinery, replacement of machinery etc. If the advance is
required for establishing a new industrial unit or for expansion of the existing unit or for modernization, a
detailed project feasibility report should be obtained. The feasibility plan and how advances are proposed to
be used to get with a view to satisfy about the technical feasibility, commercial viability, financial stability
and management competency.

  
p
c   
  
p

5. !/!$$#

Trade and commerce is usually carried on by partnership firm, joint families and individuals, limited
liability companies and co-operative societies. The trade may be wholesale or retail and principals or as
distribution agents or commission agents. The business may be confined to one or more articles of trade. The
finance may be required by way of pledge or hypothecation of commodities, for buying or holding the stocks
or by way of purchase and discount of bills for quick receipt of sale proceeds of the goods sold. It has to be
ensured that the finance is not required or used for speculative purposes or for hoarding or for socially
undesirable purposes.

·#! .

ppManual of foreign exchange published by international banking division, central office explains in detail
various types of import and export transaction together with exchange control requirement to be observed by
bank officials as also the systems and procedures prescribed for handling such transaction at branch level.
ëe will see in brief, credit facilities usually extended to the exporter/importer customers.

 1!

Finance for import trade could be either fund based or non-fund based or both. The non-fund based credit
facility is in the form of letters of credit. Since such letters of credit (L/d) contain an undertaking by the
bank to pay against presentation documents conforming to the terms and conditions stipulated in the letter of
credit, opening a letter of credit involves a credit decision for which purpose, the proposal has to be
processed in the same manner as it would be, if the proposal were for grant of an advance for an equal
amount. Since the bank relies on goods being imported under letter of credit as a security for payment of
relative bill, the marketability of such goods, taking into account the licensing conditions should also be
considered.

a)p The import of goods is controlled by government of India through import trade control regulation.
The import licenses are issued in 2 copies-µcustomer copy¶ is for the purpose of clearing the imported
goods through customs and µexchange control copy¶ to facilitate remittance of foreign exchange in
respect of relative import bill.

  
p
c   
  
p

b)p The funds based import finance generally takes of a back up limits to the letter of credit limit
sanctioned to a customer. Such limits are considered where import of goods is made in economic
order quantities for use in production over a period of time.

å# 21! .

dredit facilities to exporters are broadly classified as µpre-shipment¶ and µpost-shipment¶. As the term
indicates, financial assistance extended up to the time of shipping the goods is called pre-shipment advance,
which is controlled in the books under the head µPacking credit¶

Packing credit finance oriented finance and is granted to exporters or manufacturers or sub-suppliers for the
specific purpose of procuring raw materials/ purchasing/manufacturing/ processing/ transporting/
warehousing/ packing and shipping the good

#! .

In our corporate objectives for business growth retail banking is identified as a thrust area. It is also the
need of the hour to mobilize a good portfolio of retails banking, business, as it provides a major source for
sustaining growth in the industry and will thus ensure our position in the market place. Towards this, our
personal loan products under retails banking have repackaged and re-launched.

Retails banking are a combination of product development and selling strategies, essentially focused on
personal banking segment. It is a great opportunity for banks that already have a wide branch banking and a
large manpower base. The wider reach and staff to support intensive marketing give us an edge to develop
the business. It is an opportunity for branches to improve profitability and develop there own loan book to
generate attractive income. Hence, retail banking is the source that will support branches across the country
in a more sustaining way.

#%*!1$!**!%1! .

Term loans for development purposes and short term loans for production purposes. Now, there is need to
finance farmers for purchase of land to expand activities and make existing small and marginal units

  
p
c   
  
p

Úconomically viable which would enable farmers to diversity their present activities and take up allied
activities. The main objective is to make small and marginal holdings economically viable. To bring follow
lands and waste lands under cultivation. To step up agricultural production and productivity. To increase the
income of share croppers/ tenant farmers/ small and marginal farmers. The eligibility for the small and
marginal farmers who are having less than 5 acres non-irrigated land or less than 2.5 acres of irrigated land.
Share croppers/ tenant farmers. The farmer should have adequate surplus income from his production
activities on the land being financed and other income to repay the bank loan with interest.

The purpose of financing the farmers by way of term loan for purchase of land. (Agriculture/ fallow/ waste
land) and also finance to meet their working capital requirements of cultivation. Financing can also be done
for purchase of land for establishing or diversifying into other allied activities like dairy, poultry etc.

The quantum of loan to be sanctioned depends on:-

p Area of the land to be purchased


p Its value in the market. (for the purpose of valuation of land. For fixing the quantum of finance, the
price indicated by the farmer may be cross-checked with the register/ sub-register of the area).

Quantum of loan should include land purchase cost, development cost and cultivation expenses. The
margin should be:-

1)p Mortgage of purchase land

2)p Hypothecation of crops/ asset

3)p D. P Note

4)p Hypothecation agreement

5)p Mortgage of purchased land

  
p
c   
  
p

The repayment period is 5 to 7 years in half yearly/ yearly instalments depending upon dropping
pattern including a maximum moratorium period of 12 months In case of any longer period, it will be
referred to regional offices with justification.

  
p
c   
  
p


 '  
Analysis of loans and advances of United Bank of India.

    
Research design here refers to the methods used to collect the required data for the survey. It is the outline of
the total project. It contains the information stating the objectives of the study, scope of the study
methodology of the study, tools and techniques used for the survey, methods of data collection, limitation of
the study etc. in short research design is the chapter in which the blue print of the whole project is explained.

The research design includes an outline of the study which was conducted at United Bank of India. There
are various types of products and a service offered by UBI, and providing loans to people are one of the
important functions of the bank does. As this research study is mainly based on these schemes, we will
discuss more on the loan schemes provided by United Bank of India.

(4  &  '   

1.p To understand the terms and conditions of various loan schemes provided.
2.p To study and evaluate the performance of each loan scheme.
3.p To study about the respondent and their varying interest.
4.p .To makes suggestion based on findings.

  '   


The operational jurisdiction of the research is limited to United Bank of India. The scope
covers all loan schemes of UBI.
1.p The study is mainly concentrated on the lending practises pattern and influence in the
organisation performance.
2.p This project is mainly concerned with the lending practises in the nationalised bank of issuing
various securities.
3.p The study enables the company to know its current position.

  
p
c   
  
p

4.p To know and to set its objectives and goals.


wp The study helps in ascertaining people¶s response on bank lending

 Ã   ' (


à 

The financial management of public units has been a grinding issue before the mobility of
resources. Úven after the findings and intensive industries in the sector face huge cash crush and in
inadequacy in the mobility of resources. Úven after the findings and recommendation of so many
committee appointed by the government to enquire into the working capital issues of public sector
units.

 & 7
   
p
It is mandatory to scan through the literature which has already gone through the proposed study
subject. Various research works on lending practises of UBI has been very helpful in the successful
conduct of the study. However all such studies concentrate on certain issues and suggest piecemeal
solution. Therefore, a comprehensive study is elusive. The text and academics literature which
helped the study in details are:

p A Hand Book of Banking by N. S. Toor


p Ramman Finance management.
p Finance management and policies by James d. Van Horne.
p Management accounting principle and practises by R. K. Sharma.
p Accounting for managers S. P Jain and K.L. Narang.
p Research methodology by d.R. Kothari.
p Business Research Methods by Appannaiah Reddy and Ramnath

  
p
c   
  
p

 'Ã ' 


 
p
This refers to the method of data description. Descriptive research includes surveys and fact findings
enquire of different kinds. The major purpose of descriptive research is description of the state of affair as it
exists at present. In business research we quite often use the term export facto research for descriptive
research studies.
The main characteristics of this method is that the researcher has no control over the variable, he can only
report what has happened or what is happening. The method of research utilised in descriptive research are
survey methods of all kinds including comparative and correlation methods.
p
pppppppp  

  

p
ppppppppppppppppppData mainly collected from both primary and secondary sources.
Ôp à    Primary data are freshly gathered for a specific purpose or for a specific
research project. Primary data was collected by way of discussion with company officials.
Mainly with bank manager. It has colled through the interim schedule, discussion and by
interacting with the officials of the organization or therespondents.

up       Secondary data that were collected through published materials like
pamphlets, company books and from the official website that is www.unitedbankofindia.com

 
  '8 

Information has to be collected on the basis of the questionnaire distributed to the borrowers

Internet/ prominent search engines have been used for collecting the Data, market watch is
also used to some extent for interpretation analysis.

All data collected are carefully classified, tabulated for the purpose of research and
interpreted on the basis of charts and tables.



  
p
c   
  
p


ppppppppppp
à  '   


 1. donfined to one financial institution i.e. United Bank of India.

2. On account of time constraint whole spectrum of long term lending practises was not possible.pp

3.p Inaccurate and inadequate information might have resulted to wrong interpretation.

4.p Only a very few no. of respondent were interviewed to get the information.

5.p Accounting information is another constraint.

  
p
c   
  
p


& & 7 '   

Ô    The first chapter gives the detail introduction on the lending

u ' '   The second chapter states the objectives scope, source of data, research
methodology.

  Ã  


  '  3   The third chapter gives the profile of the
organization where the project is conducted. It also explains about the future plans of the company.

- 
          The chapter gives detail regarding the analysis and
interpretation of data after collection. It comprises of brief notes regarding analysis and various methods
through which they may be carried out. It also consists of the data in form of tables, graphs and pie-charts
and its interpretation

w ÃÃ     9 


        The chapter concluded the
project report it comprises of the findings and conclusion draw from the above analysis based on the data
collected and also includes suggestion.

·8  

å , 

((
' 









  
p
c   
  
p


à 


'! 

United Bank of India was constituted under the Banking dompanies (Acquisition and Transfer of
Undertakings) Act, 1970 on July 19, 1969. The Head Office of the Bank was set up at 4 dlive Ghat Street
(presently known as N. d. Dutta Sarani, Kolkata 700 001 which was shifted to its present location at 11
Hemanta Basu Sarani, Kolkata ± 700001 in 1972 for operational efficiency.

United Bank of India is one of the 14 banks which were nationalised on July 19, 1969. On October 12, 1950,
the name of Bengal dentral Bank Limited (established in 1918 as Bengal dentral Loan dompany Limited)
was changed to United Bank of India Limited for the purpose of amalgamation and on December 18, 1950,
domilla Banking dorporation Limited (established in 1914), the damilla Union Bank Limited (established
in 1922), the Hooghly Bank (established 1932) stood amalgamated with the Bank. Subsequently, other banks
namely, duttack Bank Limited, Tezpur Industrial Bank Limited, Hindustan Mercantile Limited and Narang
Bank of India Limited were merged with the Bank.

dhanges in our Head Office

The Head Office of our Bank was set up at 4 dlive Ghat Street (presently known as N. d. Dutta Sarani,
Kolkata 700001 which was shifted to its present location at 11 Hemanta Basu Sarani, Kolkata ± 700001 in
1972 for operational efficiency.

p Information has been collected from the website www.unitedbankofindia.com

 

  
p
c   
  
p
Ã! 

Sr. No. Year Details

1 1961 The duttack Bank Limited and The Tezpur Bank Limited merged with our Bank

2 1964 Staff Training college at Kolkata (then dalcutta) was setup

3 1969 Our Bank was nationalised by GoI

4 1970 Mobile branches were set up by our Bank

5 1973 Hindusthan Mercantile Bank Limited merged with our Bank

6 1976 Narang Bank of India Limited merged with our Bank

1980 Appointed as convenor of State Level Bankers¶ dommittee in ëest Bengal, Tripura and
7
Manipur

8 1993 First branch brought under total branch mechanism

9 1995 drossed business level of Rs. 10,000 crore

10 2006 drossed business level of Rs. 50,000 crore

11 2007 Rolled out first dBS branch

2007 Setup United Bank Socio ± Úconomic Development Foundation Trust in 2007 for rendering
12
assistance to the weaker and under priviledge sections of the society

2007 Setup the first Rural Development & Self Úmployment Training Institute to provide
13
residential training to small farmers and unemployed youth free of cost

14 2009 Achieved 100% dBS for all its branches

15 2009 drossed business level of Rs. 100,000 crore

  
p
c   
  
p
0+*!")$( 

Year Award and Recognition

National Award for the second best performance in financing small scale units by Ministry
2006
of Small Scale Industries, Government of India

Golden Jubilee Award for the best bank in north east zone for excellence in the field of
2007
khadi and village industries from the Ministry of MSMÚ, Government of India

2007-2008 Best Banc assurance partner by Tata AIG

National Award for the best bank for excellence in field of Khadi and village industries for
2008
east and north east zones from the Ministry of MSMÚ, Government of India

2008-2009 Pinnacle Partner of the year by Tata AIG

2008-2009 Highest contributor to lives insured by Tata AIG

National Award under Prime Minister Úmployment Guarantee Programme in north east
2009
zone from the Ministry of MSMÚ, Government of India

pp

  
p
c   
  
p


& & 7

United Bank of India (UBI) is one of the 14 major banks which were nationalised on July 19, 1969. Its
predecessor the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz.
domilla Banking dorporation Ltd. (1914), Bengal dentral Bank Ltd. (1918), domilla Union Bank Ltd.
(1922) and Hooghly Bank Ltd. (1932) (which were established in the years indicated in brackets after the
names). The origin of the Bank thus goes back as far as 1914. As against 174 branches, Rs. 147 crores of
deposits and Rs. 112 crores of advances at the time of nationalisation in July, 1969, today the Bank has 1484
branches, over Rs. 54,536 crores of deposits and Rs. 35,727 crores of gross advances as on 31-03-09.
Presently the Bank has a three-tier organisational set-up consisting of the Head Office, 28 Regional Offices
and 1510 branches.

After nationalisation, the Bank expanded its branch network in a big way and actively participated in the
developmental activities, particularly in the rural and semi-urban areas in conformity with the objectives of
nationalisation. In recognition of the role played by the Bank, it was designated as Lead Bank in several
districts and at present it is the Lead Bank in 30 districts in the States of ëest Bengal, Assam, Manipur and
Tripura. The Bank is also the donvener of the State Level Bankers' dommittees (SLBd) for the States of
ëest Bengal and Tripura.

UBI played a significant role in the spread of banking services in different parts of the country, more
particularly in Úastern and North-Úastern India. UBI has sponsored 4 Regional Rural Banks (RRB) one
each in ëest Bengal, Assam, Manipur and Tripura. These four RRBs together have over 1000 branches.
United Bank of India has contributed 35% of the share capital/ additional capital to all the four RRBs in
four different states. In its efforts to provide banking services to the people living in the not easily
accessible areas of the Sunderban in ëest Bengal, UBI had established two floating mobile branches on
motor launches which moved from island to island on different days of the week. The floating mobile
branches were discontinued with the opening of full-fledged branches at the centres which were being
served by the floating mobile branches. UBI is also known as the 'Tea Bank' because of its age-old
association with the financing of tea gardens. It has been the largest lender to the tea industry.

  
p
c   
  
p

The Bank has three full fledged Overseas Branches one each at Kolkata, New Delhi and Mumbai with fully
equipped dealing room and SëIFT terminal . The operations of 500 branches have been computerised either
fully or partially and Úlectronic Fund Transfer System came to be implemented in the Bank's branches at
Kolkata, Delhi, Mumbai and dhennai. The Bank has ATMs all over the country and having dash Tree
arrangement with 11 other Banks.pp

  
p
c   
  
p

  

/Ô#p '!%
! $

A shelter which you can call your own has been eluding you so far? Not anymore. ëith the United Housing
Loan Scheme, almost anyone can now fulfil his long cherished dream of owning a house or a flat of his/ her
choice at most attractive terms.

%)  

Any individual aged 21 years or above having regular income.

1! 

p Purchase of land, purchase or construction of house/ flat.

p Purchase of up to 35 years old house/ flat.

p Renovation/ extension/ repair/ furnishing of house/ flat.

p Taking over of existing Housing Loan form other Bank/ Financial Institution.

p The loan is now extended to those cases also where flats are being constructed by promoters/
developers where immediate mortgage of the property may not be possible.

8!*! 

Quantum of loan depends on the cost of house/flat, application¶s age, income, repayment capacity etc

  
p
c   
  
p

/u#p
! $

United Bank of India joins Hands with Maruti Udyog Ltd. For Financing Purchase of Maruti dars

1! 

Purchase of any Maruti Brand dar from authorized Maruti Dealer.

%) 

p Any individual with gross income of Rs.10,000/- and minimum net income of Rs.5,000/- per month.

p To be eligible the applicant will be required to get minimum score as per structured scoring Model of
UBI.

8!*
! :

Ã2. Rs.6 lack.

Ã% 10%

 

p In case of salaried person: Nil, if employer ensures repayment.

p In case of professional & Self-employed person :

To be secured by personal guarantee of 1 to 2 persons having adequate worth, otherwise at least 60% of loan
amount to be covered by liquid security in the form of Term Deposits, NSds, KVPs, LIPs (SV), and Relief
Bonds etc

  
p
c   
  
p


%)

For purchase of new car as well as old car

Your Savings/ durrent Deposit/ Term Deposit A/c holder with the Bank and fulfill the following criteria -

p A minimum net income (take home salary for salaried person) of Rs 5,000/- per month.

p In respect of working couple, net income of the spouse is considered for the purpose of computing
net income and monthly instalments, provided the spouse joins as co-borrower and monthly
instalment may be realised from the salaries of either of them. In case of salaried person, the
applicant should be in regular service for at least 2 years. Professional and self-employed persons
who are at least 2 years in their profession.

8!*
! 

p In case of individuals

Maximum amount of loan is 12.00 lacs in case of new car and Rs. 6.00 lacs in case of old car.

Ã%Ñ

p New dar:- 10%


p Old dar:- 30% of the valuation amount in case of old car

!%$% 0.50%

  
p
c   
  
p

/ #p!
! $*! ! 

Daughter¶s marriage, major surgical operation, repairing of old house, passage money for son¶s education
abroad or any other social pecuniary liability. You can now heave a sigh of relief. Our Personal loan Scheme
has been designed just to meet such eventualities.

%) 

p If you are a salaried person, with permanent service for at least 3 years, you may apply for the loan.

8!*
! 

p The maximum amount of loan shall be Rs 3 lac or 40 months' net salary, whichever is less.

!!*
! 

p The loan is to be repaid within a period not exceeding 36 months.

p
p
p
p
p

  
p
c   
  
p
p

/-#p!
! $*!! 

As a senior citizen of the society, you command a special respect from United Bank of India. The Bank is
offering you a loan scheme for assisting you to meet your various family and personal needs after retirement.

The salient features of the Revised Scheme are as under:

)5" 

To extend term loan to you to meet your family and personal expenses.

%) 

If you are a pensioner of dentral and State Governments, dentral and State Governments' Undertakings,
Defence Services, reputed dompanies, Úducational Institutions (Universities, Institutes, Schools and
dolleges) and drawing pension from the Branches of the United Bank, you are eligible for loan under the
Scheme from the Branch, where your pension is paid.

%!*$(!!0 

Your age at the time of availing loan should be such that the entire loan is repaid before your attaining
seventy five years of age.

8!*
! 

A maximum of Rs 2 lakhs subject to 12 months' gross pension.

Ã%: Nil

!%$%: 1%

)!*
! 

  
p
c   
  
p


The loan shall be disbursed through your Savings Bank A/c other than the account in which your pension is
credited every month. If you are not having any other Savings Bank A/c with the branch, you may open a
Savings A/c with the Branch jointly with another member of your family, preferably with family pensioner
for the purpose of availing of the loan under the Scheme.

/w#p'!%
!*!!

United Bank of India takes care of your Housing and related requirements at post retirement stage. You will
also find us your companion in securing Shelter in any Old-Age Home. Salient features of the Scheme are
given below

%)

1.p All pensioners of dentral and State Governments, dentral and State Governments¶ Undertakings,
Defense Services, reputed dompanies, Úducational Institutions (Universities, Institutes, Schools and
dolleges) including pensioners (VR and VRS) of United Bank .

2.p YourMonthlyNetPensionshouldbeMinimumofRs.5,000/-

3.p Your age at the time of availing the loan must be 70 years

4.p You must be physically fit and mentally alert to execute the documents. Person(s) in paralytic
condition or bed-ridden is/are not eligible for the loan

1! 

p Renovation/extension/repair/furnishing of self-occupied house/ flat.


p Purchase/construction of new house/ flat.

p Purchase of old house/ flat not old over 35 years from the date of completion of construction.

  
p
c   
  
p


p Securing shelter in any ³Old-Age HomeA

8!*
! 

Max. Rs. 2 lac provided total deduction including ÚMI of the loan must not exceed 40% of your net monthly
pension. If your spouse joins as co-borrower and if he/ she is also pensioner drawing pension from the our
branch, pension of both of you shall be considered for determining the quantum of loan within the overall
ceiling.

1! 

Úntire loan has to be liquidated before your attaining 75 years of age. The age of the 1st pensioner or from
whose income (also pensioner), the major recovery of loan will be made, shall be the deciding factor for the
period of loan (subject to maximum repayment period of 10 years). However, where loan is extended for
getting shelter in ³Old -Age Home´ total repayment period must not exceed 10 years (120 ÚMI).

  
p
c   
  
p


/·#p$

United Bank of India has come out with a loan scheme against future rent receivables for the owners of
house properties who have leased out or rented the same to bank, insurance company, multinationals,
company of good market standing, reputation and financial position, financial institutions, financially sound
public sector undertakings, Government of India offices.

The Salient features of the loan scheme are indicatedbelow:

%)

If you are an individual (single or joint) or firm or a company owning house, flat or godown and letting or
leasing it out to bank, insurance company, multinational company, company of good market standing,
reputation and sound financial position, financial institution, financial sound PSU of Govt. of India (not
individuals) and you are interested to take loan against future rentals you may apply for the loan.

8!*
!!

Max. Rs. 10 drore where ÚMI should not exceed 80% of post tax monthly rent / lease rent receivable (85%
when our bank is tenant) & 80% valueof property t o be mortgaged

1

The loan is to be repaid within the unexpired period of lease/ tenancy or 8 years whichever is lower.



p Mortgage of the unencumbered property and/ or


p LIP/ KVP/ Relief Bond/ Bank's Term Deposit etc.
p Assignment of future rent receivables.

  
p
c   
  
p

Ã%

20% of the amount of rent receivables or 20% of the value of the house property or on accrued/ surrender
value of other securities

!%$% Ô

/å#p 
! $

United Bank of India introduces a unique loan scheme against your savings in the form of NSds/ KVPs/ Life
Insurance Policies (Surrender Value). You can avail up to 100% of the face value of your savings
instruments or even more than that in case of NSds/ KVPs. The salient features of the scheme are as under:

%) 

Any individual having investment in the form of LIP (Surrender Value)/ NSd/ KVP to cover the loan
amount in his/ her name and be introduced to the bank.

1! 

For meeting all types of personal expenses.

! - Quantum of loan:

a) Against LIdI Policy -- 90% of Surrender Value

b) Against NSds/ KVPs /Relief Bond etc ±

  
p
c   
  
p

/#p !
! $

ëe are now at your doorstep to support your pursuit for excellence. Our Úducational Loan Scheme has been
designed to meet your expenses for higher studies in India and abroad.

If you are an Indian National and secured an admission to any of the following academic/ professional/
technical courses through Úntrance Test/ Selection process in a Board/ Institution/ University.

! %)*!  

p Graduation dourses: B.A., B.dom, B.Sc., etc.


p Post Graduation dourses: Master¶s and Ph.D.
p Professional dourses: Úngineering, Medical, Agriculture, Veterinary, Law, Dental, Management,
domputer, etc.
p domputer dertificate dourses of reputed Institutes accredited to Dept. of Úlectronics or Institutes
affiliated to University.
p dourses like IdëA, dA, dFA, etc.
p dourses conducted by IIM, IIT, IISd, XLRI, NIFT, etc.
p dourses offered in India by reputed foreign Universities.
p Úvening dourses of approved Institutes.
p Other dourses leading to Diploma/ Degree, etc. conducted by dolleges/ Universities approves by
UGd/ Govt./ AIdTÚ/ AIBMS/ IdMS, etc.

! %)*! )! 

p Graduation : For job-oriented professional/ technical courses offered by reputed Universities.


p Post Graduation: MdA, MBA, MS, etc.
p dourses conducted by dIMA - London, dPA in USA etc.

  
p
c   
  
p


8!*
! 

1.p For study in India: Max. Rs. 10 lack.


2.p For study abroad: Max. Rs. 20 lacks

$ 

Úxpenses covered by the Loan :

i.p Fees payable to dollege/ School/ Hostel.


ii.p Úxamination/ Library/ Laboratory Fee.
iii.p Purchase of Books/ Úquipments/ Instruments/ Uniforms.
iv.p daution Deposit/ Building Fund/ Refundable Deposit supported by Institution Bills/ Receipts.
v.p Travel Úxpenses/ Passage Money for studies abroad.
vi.p Purchase of domputers: Ússential for completion of the dourse.
vii.p Any other expenses required to complete the dourse like study tours, project work, thesis, etc.

1!*
! 

The loan is to be repaid in 5 to 7 years after commencement of repayment. The repayment will
commence after a moratorium/ repayment holiday which is dourse period plus 2 years or 6 months
after getting job whichever is earlier.

Life Insurance doverage:


To ensure security to student's and borrower's life and against their loan liability and additional loan
component for payment of one-time premium for such insurance coverage may be sanctioned by
bank on request from the customer.

  
p
c   
  
p


/ #pÃ!%%
! $

)5":

Providing loan against mortgage of property to the owner of the property. The property may be House/ Flat
or any other commercial property but not agricultural land of any other vacant land.

1! 

The loan is meant for general purpose of the borrower to meet any personal/ business requirement except
speculations.

%) 

Any individual in the age bracket of 21-65 years having property to be mortgaged and income to repay the
loan. dompany, Partnership firm, do-operative Society and Trust are, however, not eligible of the loan.
Third party property also cannot be mortgaged for taking a loan.

8!*! 

Term Loan - Maximum Rs.15.00 Lac & OD facility - Max Rs.25.00 lac subject to

1.p 24-times of monthly net income.


2.p 50% of the value of property.

Total monthly deduction including proposed ÚMI / Intt on OD should not exceed 50% of the gross monthly income of
the borrower 
p

  
p
c   
  
p
p

/Ô#p "Ã!%%!$ 

doverage The Scheme will be operative through Designated Branches in Metro


and Urban locations only

Úligibility 1.p Age of the Applicant: Min. 60 years on the date of sanction
2.p Married couples will be eligible as joint borrowers only and
both of them should be of 60 years & above age.
3.p Ownership of a residential property (house or flat) located in
India, with clear title
4.p Borrower(s) should be residing in the same residence at least
for the last one year and the same be used as their µpermanent
primary residence¶.
5.p The property should be self occupied one, an approved
construction, not older than 20 years, maintained in good
condition and must be free from all encumbrances.
6.p No Income Tax is due from the borrower(s).
7.p No income proof is required.

Purpose of Loan 1.p Supplementing pension/ other income.


2.p Up gradation, Renovation and extension of Residential
ppp
Property.
3.p Uses associated with Home Improvement, Maintenance/
Insurance of Residential Property.
4.p Medical and related emergency expenditures
5.p Repayment of an existing loan taken for and against the
residential property to be mortgaged.
6.p Meeting any other genuine need.

Quantum of Loan 1.p ëill depend upon the µµQualifying Amount¶¶ i.e. realizable

  
p
c   
  
p
value of the property minus margin.
2.p µµQualifying Amount¶¶ shall be restricted to Rs. 50 lakhs.
3.p Property will be revalued at an interval of every five years &
the µµQualifying Amount¶¶ and thus loan amount shall be
revised based on such revaluation of property.
4.p The quantum of lumpsum payment (if any) and periodic
payment shall be decided in such a manner so that the total
lump sum payment and total periodic payment to the borrower
together with the accrued interest and other charges in the loan
account during the sanctioned tenor will not be more than the
µµQualifying Amount¶¶ so arrived at after latest valuation of the
property (realizable value of the property minus margin).

Margin 20% of the value of the property

Disbursement of Ôp PeriodicityÑpThe loan shall be disbursed as regular monthly or


Loan  periodic cash advances and/or a lump sum payment (upon
request). However, lump sum disbursal shall be restricted to
end use of the fund. Further, lump sum disbursement should be
restricted to loan amount calculated on 40% of the
µµQualifying and thereafter period payment shall be fixed on
the remaining 60% of the µµQualifying Amount¶:
up TenorÑp The tenor of disbursement shall be of 15 years or till
the death of the last surviving borrower, whichever is earlier.
 p Úxtension of the loan period:The Bank may consider extension
of loan tenor for additional 5 years at its discretion depending
on the market value of the property, its status, purpose of
extension and approval from appropriate authority.

  
p
c   
  
p
p

/ÔÔ#

Ô)5"

The scheme aims at providing adequate and timely credit for the comprehensive credit requirements of
farmers for taking up agriculture and allied activities under single window, with flexible and simplified
procedure, adopting whole farm approach, including the short-term credit needs and a reasonable component
for consumption needs, through Kisan dredit dard including repayment of farmer's dues to non-institutional
lenders.

u!*!1!

Through all rural and semi urban branches.

  %)

i. Short term crop loans to farmers those who are owner cultivators/share-croppers/bargadars.

ii. Kdd can also be issued for meeting the short term production need/working capital needs
in respect of the allied activities like poultry, dairy, pisciculture, floriculture, horticulture
etc.

iii. Kdd schemes also covers the term credits for agriculture and allied activities.

iv. Kdd is issued to individual borrower only on merit and not to corporate body society,
association, club, group etc.

v. Illiterate and blind persons intending to avail of this facility may be allowed after taking
proper safeguard against misuse and tampering.

  
p
c   
  
p


-1!

It is intended that both term as well as short term/working capital credit facilities will be provided through
single Kisan dredit dard. The passbook provided to Kdd holders are to be divided into three separate
portions for maintaining the records of :-

a) short term credit / crop loans, b) working capital credit for activities allied to agriculture and c) term credit
(repayable beyond 12 months)

However, it is to be ensured that transaction records of different loan facilities are kept distinct.

w

i. Minimum credit limit should be Rs.25000/- and maximum Rs.10.00 lac in the form of
working capital and term loan. However, in deserving cases the upper limit may be
enhanced above Rs.10.00 lac which has to be disposed of under the D.P. of the General
Manager in charge of Priority Sector Lending.

ii. ëorking capital will be in the form of revolving cash credit and any number of withdrawals
and repayments in the account is allowed with a view to provide flexibility to the borrower
in deciding the appropriate time for withdrawal of the sanctioned limit and reducing his
loan and interest burden.(For ST drop Loan, donsumption Loan and repayment of non-
institutional loans)

iii. Term Loan to be sanctioned for purchase of agricultural implements , plant and machinery
and land developing including construction of different types of storage facilities.

iv. ëhile fixing the limit and sub-limits, entire year's production credit requirement is
reckoned, including those of ancillary activities such as storing, marketing, electric
expenses etc.

v. dredit limit is fixed on the basis of land holding under cultivation, cropping pattern and the
scale of finance recommended by District/State level technical committee. In the absence of

  
p
c   
  
p

such recommendation, the branch may fix appropriate scale of finance for the crop after
getting permission from the concerned Regional Office.

vi. The branch should also fix season-wise sub-limits within the overall credit limit.

vii. dontingency expenses, including consumption loan should not exceed 10% of the ST loan
sub-limit subject to maximum Rs.10,000/- till harvesting the benefit of production linking
with family need.

viii. Repayment of loan availed from non-institutional lenders by the farmer borrowers in
addition to consumption/contingency credit limit should not exceed 25% of the ST loan
sub-limit subject to maximum Rs.25,000/-.

 

  
p
c   
  
p
) Ô

)$!0%!"*!$u·;u 

  
 !/!# %/#

2006 - 2007 22,156.11 25.95

2007 - 2008 27,868.11 32.62

2008 - 2009 35,393.55 41.43

Total 85,417.77 100




 

From the above table it can be analysed that in the year 2006 ± 2007 the total no. of advances was 22,156.11
crore with a 25.95%; in 2007 ± 2008 the total no. of advances was 27,868.11 crore 32.62% and in the year
2008 ± 2009 the amount is 35,393.55 with 41.43%.

  
p
c        
p
ppppppppppp pp

pppppppppp p  p

p  pp
ppppp

tlp


u 


 u p u

up u

up u

p
ppppppppppppp
pppppppppppp p

ppppppppppp pt ppi p


tpitp
 ppi pt tpi pt ppppp pt pipppp

p

 
 
p
c   
  
p
)u

)$!0%!%!!*!*!$u·.u 

/#p'!%*


  
 !/!# %/# 

2006 - 2007 1,418.57 31.80 


2007 - 2008 1,453.67 32.50


2008 - 2009 1,591.42 35.70 


Total 4463.66 100



 
From the above table it is analysed that when we compare the year 2006 ± 2007 the amount outstanding was
1,418.57 crore with 31.80%. In the year 2007 ± 2008 the amount was 1,453.67 crore with 32.50 % and in the
year 2008 ± 2009 it was 1,591.42 crore with 35.70%.

  
p
c       
p
p pp

p  pp

  p
pp
p pp
ppppp

p
 pp! p  pp
p
0i p i 
p

  u

u p u
u up u
up u

p
p

pp p
p p t p p i p
tp itp
 p p i p t tp t p ip
 ti p t p p p i p t p i p
i 
pp tp pipp ti
lpt pi pt p pl p tp i
pipp itlptpt p p
pt ip t p i 
ilpi t p

 
 
p
c   
  
p
) 

)$!0%!%!!*!*!$u·.u 

/)#!


   
 !/!# %/#

2006 - 2007 70.18 23.62

2007 - 2008 80.07 26.96


2008 - 2009 146.81 49.42 


Total 297.06 100



 
From the above table it is analyzed that when we compare the year 2006 ± 2007 the amount outstanding was
70.18 crore with 23.62% . In the year 2007 ± 2008 the amount was 80.02 crore which shows 26.96% and in
the year 2008 ± 2009 the amount was 146.81 crore with 49.42%.

 

  
p
c       
p
"p

p  p

  p pp
ppppp

pppppppppppppppppp# p$p p

›p





c p pp 
p

  
  


p 
p 
p 

£ 

p
p
 p

pt pp pitp


 ppi pt tpi pt pppppt pipppt tilpt pi pt p
p
l ppi tpllpipp

 
 
p
c   
  
p
1$- 

)$!0%!%!*!$u·;u  

/#!!


  
 !/!# %/#

2006 - 2007 384.46 28.31

2007 - 2008 425.11 31.32

2008 - 2009 548.24 40.37

Total 1357.81 100


 
From the above table it is analyzed that when we compare the year 2006 ± 2007 the amount was 384.46
crore which shows 28.31%. In the year 2007 ± 2008 the amount was 425.11 crore which shows 31.32% and
in the year 2008 ± 2009 the amount was 548.24 crore which shows the percentage of 40.37.

  
p
c       
p
ppppppp

pp p%p

pp p  p

  p pp
ppppppp

ppppppppppppppppppppppp p& p p

p
 lpl

XX


XX

XX

XX
c p pp 
p 
uXX   
XX

uXX p uXX
uXXp uXX
uXXp uXX

ppppppppppppppppppppppppppppppppppppppppppppppppppp p

p
p &' p

pt pp ti p pitp


 ppi ttpt tpt pippt tilpt ppppi pt p
 lpl p

ppppppppppp

 
 
p
c   
  
p


)w

 )$!0%!%!*!$u·.u 

/# !!

  
 !/!# %/#

2006 - 2007 224.99 26.88

2007 - 2008 276.84 33.09

2008 - 2009 335.07 40.03

Total 836.9 100


 
From the above table it is analysed that when we compare the year 2006 ± 2007 the amount
outstanding is 224.99 crore with 26.88%. In the year 2007 ± 2008 the outstanding amount is 276.84 crore
with 33.09% and in the year 2008 ± 2009 the outstanding amount is 335.07 crore with 40.03%.

 

  
p
c       
p
p p

p  p

  p pp
ppppp

pppppppppppppppppppppp pp 
 p p

6   ! p› ! p 




u

u c p pp 
p

  
   




u p u
up u
up u

p
p

 '&' p
pt pp pitpip pt tpt pipp
 t tpt pi pt p
ti pl p p itpB p p ip
 pipp ti
lpt pi pt p
ti pl p tppp i
pipp itlptpt p p pt ip
t p i 
ilpi tp p

 

p
c   
  
p
)·

)$!0%!%!!!*!$u·.u 

  
 !/!# %/#

2006 - 2007 3,469.72 30.28

2007 - 2008 3,727.22 32.54

2008 - 2009 4,260.36 37.18

Total 11,457.3 100


 
From the above table it is analyzed that when we compare the year 2006 ± 2007 the amount was 3,469.72
crore with 30.28%. In the year 2007 ± 2008 the amount was 3,727.22 crore with 32.54% and in the year
2008 ± 2009 the amount was 4,260.36 crore with 37.18% .

  
p
c       
p
pp

pppppp p  p



  p p
p
p
pp
ppppp

p
6tt i pl ptptilp
t










u


u
 c pp  


 
 








up u
u p u
up u
p
p
 '&' p
p
pt pp pitp
 ppi pt tpt pipptpt pi pt pl p pt ptilp

tp p"p p pipt pipi pt ppppp

 
 
p
c   
  
p
)å

)$!0%!%!!!1!!*!$u·;u 

  
 !/!# %/#

2006 - 2007 13,032.09 26.05

2007 - 2008 15,661.44 31.29

2008 - 2009 21,349.41 42.66

Total 50,042.94 100



 

From the above table it is analysed that when we compare the year 2006 ± 2007 the amount was 13,032.09
crore which shows a percentage of 26.05. In the year 2007 ± 2008 the amount was15,661.44 in crore which
shows the percentage of 31.29 and in the year 2008 ± 2009 the amount was 21,349.41 in crore which shows
the percentage of 42.66.



  
p
c       
p
p p p

pp p  p

  p p
p
p
pp
ppppp

 ppp   p 

u 


u p u
 up u
up u

p
p
 '&' p
p
pt ppi
tpitpipi pt tpt pip
 t tpt pi pt ptt i pl pi p

tp
tp

 
 
p
c   
  
p
)

)$!0%!%!!!$0$$1!!*!$
u·.u 



  
 !/!# %/#

2006 - 2007 6,138.64 24.53

2007 - 2008 8,763.02 35.03

2008 - 2009 10,118.47 40.44

Total 25,020.14 100



 

From the above table it is analyzed that when we compare the year 2006 ± 2007 the amount was 6,138.64
crore with 24.53%. In the year 2007 ± 2008 the amount was 8,763.02 crore with 35.03% and in the year
2008 ± 2009 the amount was 10,118.47 crore with 40.44%.

  
p
c       
p
p(p

p  p

  p p
p
p p  p
p
pp
pp
ppp

6tt i pl ptpt pi


li piitp
t

u





c pp  

   


u


u p u u p u up u
p
p
 '&' p

pt pp pitp


 ppi pt tpt pipp ti
lpt pi pt ptt i pl ppt p
 i
pi
lpiitp
tp i
pip i lp  i
ilptpt p p

p p

 

p
c   
  
p
) 

)$!0%!!%!!)!*!$u·.u 

  
 !/!# %/#


2006 - 2007 22,640.45 26.16

2007 - 2008 28,151.68 32.55

2008 - 2009 35,728.24 41.29

Total 86,520.37 100



 

From the above table it is analysed that when we compare the year 2006 ± 2007 the amount outstanding was
22,640.45 crore which shows a percentage of 26.16. In the year 2007 ± 2008 the amount was 28,151.68
crore which shows the percentage of 32.55 and in the year 2008 ± 2009 amount was 35,728.24 crore which
shows the percentage of 41.29.

  
p
c       
p
pp

p  p

  p p
p# p
pp
ppppp

 pppp

u 
 

u p u

up u
up u

p
p

 '&' p

p t p p  p itp ip i p t tp t p ipp t tilp t p i p t p tt i p l p i p i p

tp i
p

lpt tpitpip i lp tptpt p p pt ip t p i 
ilpi tp

 

p
c   
  
p
)Ô

)$!0%!!%"*!$u· .uå

  
 !/!# %/#


2006 - 2007 3,469.72 30.28

2007 - 2008 3,727.22 32.53

2008 - 2009 4,260.36 37.19

Total 11,457.3 100



 

From the above table it is concluded that when we compare the year 2006 ± 2007 the amount outstanding
was 3,469.72 crore with 30.28%. In the year 2007 ± 2008 the outstanding amount was 3,727.22 crore with
32.53% and in the year 2008 ± 2009 the amount is 4,260.36 crore with 37.19%.

  
p
c       
p
pp

p  p

p

  p
p  pp
ppppp

tlptt i p ptilp














u


u
 c pp 
pp  


   








u p u
up u
up u
p
p
 '&' p

pt pp pitp


 ppi pt tpt ppp# tilpt ppip i
pip i lp  i
ilp
tpt p itpB p p ip

 

p
c   
  
p
)ÔÔ 

)$!0%!*!$u·.u 

  
 !/!# %/#


2006 - 2007 13,983.65 30.28

2007 - 2008 19,200.56 32.53

2008 - 2009 25,991.64 37.19

Total 59,175.85 100



 

From the table it can be analysed that in the year 2006 ± 2007 the amount is 13,983.65 crore with a
percentage of 30.28. In the year 2007 ± 2008 the amount is 19,200.56 crore with a percentage of 32.53 and
in the year 2008 ± 2009 the amount is 25,991.64 crore with a percentage of 37.19.

 

  
p
c       
p
pp pp

p p  p
p pp
ppppp

p
pl

u


u p u
u
up u
up u

p
p

p '&' p


ptp
 ppi pt tpt pip
 ti pt pi pt pptpl pippt p p i pt p
ipt pip pi pt ppppp

 
 
p
c   
  
p
 )Ôu

 )$!0%!<*!!*$!)!!0

  
 )!*1! %/#

PUd 28 28

Graduate 54 54

Post- graduate 18 28

Total 100 100


 

From the above mentioned table it can be analyzed that 28% have done PUd, 54% are graduate and
18% are post-graduate..













  
p
c       
p
p

pp pp

p p  p 


 p)
 pp
p# p

p
 p  





u




 
 

  p p    
p
p
 '&' p
p
p p t p p  p itp
 p p i p t tp ip p  p   tp ptp  p pppppp
i ip p p  tppt tp

p p

 
 
p
c   
  
p
)Ô 

)$!0%)1!*1!...%0
p

p p p
p p p
% !!*1! %/#

20 - 30 45 45

30 - 40 29 29

40 - 50 18 18

Above 50 8 8

Total 100 100


 :

From the above table it is seen that in there are 45 respondent in the age group of 20 ± 30, 29 respondents
fall in the age group of 30 ± 40, 18 respondent in the age group of 40 ± 50 and 8 respondent above the age
group of 50.

  
p
c       
p
pp p"pp

pp p  p#*ppp 
pp p
p

 pp   p





 
p p 


  






cp


p
p

p


 pp

pt pp pitp


 ppi pt tpt pjitpp p  tpl ptppt ppp p
pp$p llppt ppp p$pp%p pltp p p  tpl ptpt pppp
&p

 

p
c   
  
p
)Ô-

)$!0%)1!*1!...%0

  
 !!*1! %/#

Male 88 88

Female 12 12

Total 100 100


 

From the above table it is analysed that 88 respondent are males whereas only 12 respondents are females
which shows the maximum no. of respondent were males.

  
p
c       
p
p% p

p  p#*ppp 
p p p

Bpp p  t  pi

X
X
X
X
X

p p 
X
  
X
uX
X
X


 

p
p

p


 :pp

p t p p  p itp ip i p t tp t tpt p ip p  p   tp p lp  p lp
ti
iti piplp

 

p
c   
  
p
)Ôw

)$!0%)1!*1!...!1!0

  
1! !!*1! %/#
 
Government 35 35


Professional 15 15

Private 24 24

Business 26 26

Total 100 100


 

From the above table it can be analysed that 35 of the respondents are government employees, 15 are
professional, 24 are in private and 26 belongs to the business .

  
p
c       
p
p p

p  p#*ppp 
pp
 p p
p

Bpp p  t 

ti pi



u 
p p 
  





  p      

p
p




 p

pt pp pitp


 ppi pt tp pjp
tp pt pip p

ti pp  tp
lpp p

 

p
c   
  
p
)Ô·

)$!0%)1!*1!...!0

  
!/# !!*1! %/#
 
Less than 50,000 20 20


50,000 ± 1,00,000 28 28

1,00,000 ± 1,50,000 48 48

Above 1,50,000 4 4

Total 100 100


 

From the above mentioned table it can be concluded that there are 20 respondents income is less than
50,000 ; 28 respondents falls in the income group of 50,000 ± 1,00,000 ; 48 respondents in the income
group of 1,00,000 ± 1,50,0000 and 4 respondents falls in the income group above 1,50,000.

  
p
c       
p
pp

p  p#*ppp 
pp p p
p

Bpp p  t i
pi





u




! pp

p  p 
 c" p



p p     
p
p

p


 pp

ptp
 ppi pt tpjitp p p  tpl ptppi
pp p'((pp'(&(p pt p
ltpiplp'(&(p

 
 
p
c   
  
p
)Ôå

)$!0%!!*0

  
! !!*1! %/#
 
UBI employees 45 45


Magazine 35 35

Friends and television 12 13

Newspaper 8 8

Total 100 100


 

From the above table it can be analysed that source of awareness of 45 respondents was through UBI
employees, 35 was through magazine; 12 was through friends and television and 8 was through newspaper,
12 was through friends and television through

  
p
c       
p
p p

p  ppp  p


p


p p 

X


X
u

uX

p p 

  
X

p 
 
 pp
 

p
p

 '&' p

tp
 p p i p t tp jitp  p t p   tp
p tp  p tp t p  p t  pBp lp
llpp)i (p i p ptlii p p i llpt pltp
ptp ppt  pp p

p p

 
 
p
c   
  
p
)Ô

)$!0% Ã1)$)!!0

  
! !!*1! %/#
 
Below 5,000 20 20


5,000 ± 10,000 43 43

10,000 ± 15,000 30 30

15,000 ± 20,000 7 7

Total 100 100


 

From the above table it can be analysed that below 5,000, 20 respondent paid ÚMI in between 5,000 ±
10, 000 , 43 in between 10,000 ± 15,000 , 30 paid ÚMI and the least ÚMI was paid in between 15,000 ±
20,000.

  
p
c       
p
p(p

p  p p p#p


p# p

ÚMpippt p

 u

p



p 
p


p u

p
p

 '&' p

tp
 ppi p pt pi p
tpt tpt pjitp p p  tp pp Mppipi pt p
&(pp'(p pt pltp Mpippt ppipi pt p'&(pp(p

 

p
c   
  
p
)Ô 

)$!0%!!)!!0)1!

  
!/# !!*1! %/#
 
Below 5,00,000 30 30


5,00,000 ± 10,00,000 45 45

10,00,000 ± 15,00,000 20 20

15,00,000 ± 20,00,00 5 5

Total 100 100



 

It can be analyzed from the above mentioned table that that there were 30 respondents who borrowed
amount of loan below 5,00,000 ; 45 between 5,00,000 ± 10,00,000 ; 20 between 10,00,000 to 15,00,000 and
there were only 5 respondents who borrowed above 15,00,000. ± 20,00,000

  
p
c       
p
pppppppppp ppp

p  p p


p#  p#p 
p
p
p
G p  ppp 





u

u

p p 


   

p


p
 p

 
p
u

p
p
 '&' p
p
pt pp pitp
 ppi ttpt tpt pip p p tppp  tp
ip i p t p &((p p '((p  p t p ltp p  tp p p   tp ip i p
t p'&((pp((p p

 

p
c   
  
p
)u

)$!0%*!"!*1!0$!

  
 *!" !!*1! %/#
 
Úxtremely satisfied 15 15


Satisfied 53 53

Moderate 25 25

Unsatisfied 7 7

Total 100 100



 

From the above table an attempt was made to understand whether respondent feels that the products offered
by the bank were extremely satisfied, satisfied, moderate or unsatisfied.

  
p
c       
p
p

p  p

p pp 
p 
p p

ti 
tpllp p  t





  #p$$  


 $  
 
$$  

p
p
 '&' p

ptp
 ppi p pt pi
tpt tpt tpt pip p p  tppti ip pltp p
 p  tpp ti ip p

 

p
c   
  
p
p

  
1.p 45% of the loans taking customers are in between the age of 20 ± 30 while another 29% of customers
are in between the age 30 ± 40. 18% of the customers belong to the 40 ± 50 age categories while 8%
are above the age of 50.
2.p 88% of the loan takers are male while only 12% are female.
3.p 35% of loan taking customer are working at the government sector, 15% professional, 24% private
and 26% customers are engaged in his / her own business.
4.p It can be observed that majority of customers are under the income group of 1,00,000 ± 1,50,000
which is 48% followed by the income group of Rs. 50,000 ± 1,00,000, at 28%. The group earning
less than Rs. 50,000 owns 20% and at last the income group of Rs. 1,50,000 and above owns 4%.
5.p 45% of respondent are made aware about loan by UBI employee while 35% are made aware by
magazine. 13% and 7% of customer are made aware of UBI bank by newspapers and friends.
6.p Majority of the ÚMI was paid by the borrower in between 5,000 ± 10,000 and least ÚMI was paid by
borrowed in between 20,000 ± 30,000.
7.p 30% of customer of UBI banks are taking loans below 5,00,000, ëhile 45% are taking between
5,00,00 ± 10,00,000 , 20% are taking between 10,00,000 ± 15,00,000 by 22% and only 5% borrowed
in between 15,00,000 ± 20,00,000.
8.p 53% of the customers are satisfied with the loan amount while 25% are moderately satisfied and 15%
are extremely satisfied but 7% are unsatisfied.
9.p It is also found that there is an impressive continuous growth in vehicle loan, education loan and
personal loans which is remarkably outstanding for the bank.
10.pHome loan segment has a better increasing trend in coming years since it has a high rate of demand
in the current market.

  
p
c   
  
p
p

  

1.p The bank¶s variety of loans and advances are unlimited but they are not communicated well enough
to customers. Hence, it is suggested to make additional efforts to provide information to the
customers about the range of loans and advances

2.p Attractive and competitive interest rates should be adopted since it is the main factor considered for
taking loans by the customers.

3.p Since all the banks are providing loans with the same features. It is recommended that bank should
offer some unique features to its products to acquire strong identity and can be easily distinguished.

4.p At the present scenario, United Bank of India should intensify their advertisement campaign in order
to gain new customers, make people aware of the new schemes available to them and also take
advantage of the current market.

5.p Service level provided by the bank should be more efficient and effective for the customer. The
customers are very keen on the service provided by the bank. They would rate it as one of the
important factor while selecting the loans.

6.p The bank should adopt attractive and competitive rate of interest in order to induce customers to take
personal loans and to attain more shares from its competitors. This is also one of the critical factors
for selecting the loans.

7.p Increase in short- term lending such as cash credits, Overdraft and Loans repayable on demand is
most favourable to bank to earn short- term gain and maintain liquidity.

8.p A suggestion is made to the bank to expand the business globally and offer more and more services
to the people abroad.

  
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9.p Bank should follow guidelines towards priority sector and get benefits out of it.

10.pOffer best customer services, lending on profitable ventures, diversifying the business to cope with
the competition.
11.pBank should use latest technologies in banking activities.
12.pFew customer has not selected the branch because of less branches in southern region compared to
the other region.

 

  
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!!

 Human beings are no more constraint to the basic necessities in their lives. Their needs have
diversified through the ages placing an increase demand on resources. The economic boom in the country
has wide open the new challenges and opportunities to the people. This has necessitated timely and easy
availability of funds to meet the requirements of institutions and individuals in meeting their goals. Thus to
keep up with the pace of this increasing demand, the banking industry have come forward with the credit
portfolio to provide funds on relatively easier terms and conditions. Today, banks are committed towards
providing more and more number of people with finance with a view to make their lives better.

The ever increasing demands of the customers have forced the banking sectors to emerge with
new retail products bearing new unique features in them. The competition among the banks cannot be
neglected. They have been supplying loans for the purpose of purchase of vehicles , pursue of higher
education, or to meet their other personal requirements.

The banking industry is witnessing a boom at present boosted by the increasing demand for
retail loan products. The demand has arisen as a result of genuine individual needs. From an overall view
point demand for retail loans is ever rising and the same would be reflected on the demand for funds. Hence
the profitability of this particular industry is expected to take a positive track in the future ahead.

  
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8  

Dear sir / madam

I am a student of dMR institute of management studies, under Bangalore university. I need your kind co-
operation regarding the following information, which will be used only for my academic purpose. It will be
considered as highly confidential.

Ã
8   Ã  

1.p Personal details of customer

p Name:__________________________

p Address:_________________________

p Gender 1. Male 2. Female

p Age

a)p 20 - 30

b)p 30 ± 40

c)p 40 ± 50

d)p 50 -60

e)p 50 and above

  
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p

p Qualification

a)p Graduate

b)p Post graduate

c)p Others

2) Occupation

a) Government

b) Professional

c ) Private

d) Business

3) Annual income

a) Below Rs. 50,000

b) Rs. 50,000 ± Rs. 1,00,000

c) Rs. 1,00,000 ± Rs. 1,50,000

d) Rs. 1,50,000 and above

4) Accounts in other bank

a) Yes

b) No

5) Is this is the first time you borrowing the loan?

a) Yes

b) No

  
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c   
  
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6) For what purpose have you borrowed the loan?

a) Housing finance

b) dar loan

c) Úducational loan

d) Personal loan

7) ëhat is the combined annual income of your family?

a) Below Rs. 50,000

b) Rs. 50,000 ± Rs. 1,00,000

c) Rs. 1,00,000 ± Rs. 1,50,000

d) Rs. 1,50,000 and above

8) How many times did you approach the bank to get the loan?

a) One

b) Two

c) Three

d) Four

9) How much loan amount borrowed by you from U.B.I?

a) Below 5,00,000

b) Rs. 5,00,000 ± Rs. 10,00,000

c) Rs. 10,00,000 ± Rs. 15,00,000

d) Rs. 15,00,000 ± Rs. 20,00,000

  
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10) ëhat is the monthly ÚMI paid by you?

a) Below 5,000

b) Rs.5,000 ± Rs.10,000

c) Rs.20,000 ± Rs.30,000

d) Rs.30,000 and above

11) How many years have you taken the loan for?

a) 0 - 3 years

b) 3 ± 6 years

c) 6 ± 10 years

d) 10 years and above

12) Did you face any problems for borrowing loan?

a) Yes

b) No

13) ëhat are the sources that make you aware of UBI loan schemes?

a) Newspaper

b) Magazine

c) Friends and television

d) UBI or other bank employee

  
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14) Are you satisfied with your decision to take loan from UBI?

a) Úxtremely satisfied

b) Satisfied

c) Moderate

d) Unsatisfied

16) Rate your level of satisfaction in a scale of 1 ± 10

-----------------------------------------------------------------------------------------------------------------------------------
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17) ëhat do you think about interest rates?

a) Úxtreme High

b) High

c) Low

d) O. k.

18) ëhat do you think about UBI bank service?

a) Very good

b) Good

c) O.k.

d) Bad

  
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((
' 


p A Hand Book of Banking by N. S. Toor
p Ramman Finance management.
p Finance management and policies by James d. Van Horne.
p Management accounting principle and practises by R. K. Sharma.
p Accounting for managers S. P Jain and K.L. Narang.
p Research methodology by d.R. Kothori.

p Business Research Methods by Appannaiah Reddy and Ramnath

ëÚBSITÚS:
www.unitedbankofindia.com

www.google.com

www.rbi.org.in

  
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