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A Project Report on
COMPARATIVE STUDY OF HOME LOANS OF ABHYUDAYA CO-OPERATIVE
BANK AND NKGSB CO-OPERATIVE BANK .
BACHELOR OF COMMERCE
BANKING & INSURANCE
SEMESTER V
(2012-2013)
SUBMITTED
IN PARTIAL FUFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF DEGREE OF
BACHELOR OF COMMERCE- BANKING & INSURANCE
BY
MEENAKSHI MOHAN DANGE
ROLL NO.70502
UNDER THE GUIDANCE OF
MRS. PALLAVI BARAPATRE
ICLES MOTILAL JHUNJHUNWALA COLLEGE OF ARTS, SCIENCE &
COMMERCE
SEC-9A, VASHI,
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NAVI MUMBAI-400703.

University of Mumbai

A PROJECT REPORT
ON
MERGERS & ACQUISITIONS OF BANKING SECTOR
Submitted by
MEENAKSHI MOHAN DANGE
In partial fulfillment for the award of the degree of
BACHLOR OF COMMERCE BANKING & INSURANCE
TYBBI SEM: V
(2012-2013)

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ICLES MOTILAL JHUNJHUNWALA COLLEGE OF ARTS, SCIENCE &

COMMERCE
VASHI, NAVI MUMBAI -400703.

ICLESMJ COLLEGE OF SCIENCE COMMERCE AND ARTS

ROYAL AMLENDU MARG,
SECTOR-9A, VASHI NAVI MUMBAI-400703.

CERTIFICATE
This is to certify that master/miss_________________
Of B.Com Banking and Insurance Semester V (2012-13)
has successfully completed the project
on ___________________________________ under
the guidance of Ms. ______________________.

__________________

_________________

Course coordinator

Principal

_______________
Project guide/internal examiner
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_________________
External examiner
DATE:
PLACE

DECLARATION

I, _______________, the student of B.Com (Banking and Insurance)

Semester V (2012-13) hereby declare that I have completed the project on
_____________________.
The information presented through this project is true and original to the best of
my knowledge.

DATE:
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PLACE:
_______________
Students signature
Meenakshi Dange
Roll no.

ACKNOWLEDGEMENT
In making this project report a lot of people have contributed by giving me the
required knowledge and time, I would like to thank all the respondents of my
questionnaire.
I would like to express my gratitude and sincere thanks to my project guide Ms.
AARATHI KALYANRAMAN, S.I.E.S college of commerce & economics for
instilling confidence in me to carry out this study and extending valuable guidance
and encouragement from time to time, without it would not have been possible to
undertake and complete this project.
I also wish to extend my appreciation to the management and staff of my college,
especially our Principal Ms

,for their kind

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and support. And last but not the least my colleagues for their valuable comments
and suggestions for making this a cherishables experience for me.

_____________________
(Ms. MEENAKSHI DANGE)

CHAPTER

TOPICS

1.

EXECUTIVE SUMMARY

2.

INTRODUCTION TO SUBJECT

3.

O OBJECTIVES

4.

PROFILE OF THE ORGANISATION

5.

COMPANY HISTORY

6.

RECENT ACHIEVEMENTS AND

MILESTONES
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7.

PERFORMANCE

8.

FINANCIAL STATUS

9.

FUTURE PROSPECTS / PLANS

10.

SURVEY OF LITERATURE

11.

INTERPRETATION/ QUESSIONNAIRE

12.

LIMITATION

13.

CONCLUSION

14.

REFFERENCES

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INTRODUCTION TO SUBJECT:

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Home loans work like any other debt. That is, loans are simply specific money that
we borrow from a bank, a private lender, or some other type of lender. Afterwards, we must
repay our debt with interest. However, unlike other types of loans, home loans are different in
several respects. Owning a piece of land or property is a lifetime dream for every individual.
.

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There are many home loans provider in the market.

There are different type of home loan i.e.

y p
T
s o
e
fh o
e lo
m
n
a

HOME PURCHASE LOAN

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These are the basic forms of home loans used for purchasing of a new home. With about a
million home lenders and mortgage brokers it's becoming a tough challenge as the days are
progressing. But at the same time, when the sites are coming up with all the latest tools and relevant
information for us ,and with all such conveniences, obtaining a home purchase loan or mortgage
Has become really pretty simple.
However, at the same time though, we may be flummoxed to look so many attractive rates
and offers in the market, not to forget the hidden costs associated with each of them.

HOME IMPROVEMENT LOAN

Home improvement loans are used to finance improvements and add on to the existing set
of credentials of beauty on your owned house, recently purchased property or rented
accommodation. Home improvement loans are used to maintain or enhance the value of your
house. In general it includes: repairs, remodeling, energy-related items (permanent in
nature),repairs, a new kitchen, a new bathroom, terrace, an extension or general property
improvements. Luxury items and fireplaces are generally not eligible, though. Many improvements
in landscape and even swimming pools are nowadays considered to be a part of home
improvement.

HOME CONSTRUCTION LOAN

Home construction loans are used to finance for the construction of our newly acquired
home or if we are planning to build a home.
The factors include in calculations for house building costs?
Maximum Amount of Home Extension Loans:
Banks generally offers about 70-85% of the total amount of home extension as loan. The
amount of loan sanctioned also depends on a number of factors such as the age of the applicant at
the time of loan, tenure of the loan, repayment capacity of the borrower; his/her credit history etc.
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HOME EQUITY LOAN

Home equity loans helps customer to encash the market value of the commodity by taking a
loan by mortgaging the property. So, Home equity loans are availed by customers, who wish to
mortgage his/her property to the bank for taking some loan for some other purpose. Then, it's up to
the bank's discretion to consider the market value of the property and accordingly decide how much
to pay to the customer.
Both the residential as well as non residential property can be considered for the approval of
the loan, provided the mortgager is a licensed title holder and the land is free form any kind of
dispute. Home equity loans don't restrict one to use the loan money in specific investments. It might
also be used in marriage, higher education, medical expenses, etc. However it should not be used
in any illegal or speculation purposes.

LAND PURCHASE LOAN

Land Purchase loans are used by customers who wish to purchase a plot of land for
commercial or residential purpose. Everyone has his/her dream perfectly sketched in his souls and
so is his ambition to get his house erected on the exact location he dreamt that to be. If you have
found and short listed the piece of land, and have arrived here for finance, you have come to the
best place you could have arrived in the web.
Now, that you have decided to purchase a land as an investment or for your own dream home,
you will realize that a land purchase loan is one you will cherish. Loans that are strictly for land
purchase can be as scarce as good residential plots. While many lending firms around the nation
compete to provide mortgages for the purchase of a house on a lot, only local institutions typically
will be interested in lending for an empty lot. Bridge loans are designed for people who wish to sell
the existing home and purchase another one. The bridge loans help finance the new home, until a
buyer is found for the home.

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BRIDGE LOAN
Bridge loans are used by customers as an effective vehicle to capitalize on a
purchase opportunity. It can be considered as a short term financing scheme which
Design of the house
Construction cost
Financing Cost
Buildable site.
All the above mentioned costs will help us to determine the amount we may need to
borrow. For example, besides calculating the construction costs, we may also be required to
consider the total expenditures to develop the site in order to build. Each site is unique requiring
different expenditures so this specific rupee amount will vary from site location to site location.
Payment: Before the house starts getting build, we will be required to pay a deposit to your builder
as well as paying a deposit for the land if we are buying land. As work progresses you will need to
make payments to the builder. Certain loans can be structured for progress payments to be made
during construction.

Home extension loans are used by customers to get loans from the banks to extend their
houses, by adding more rooms, kitchens, wash rooms etc for your growing family. It may also be
used to enclose open balcony/terrace space, or constructing a Puja ghar is generally expected to be
paid back, within the range of 6-36 months, till the time the borrower gets more permanent and
lower cost financing.
So, bridge loans, (or swing loans as they are otherwise said) is a short term loan provided by
various banks like Bank of India, Citibank, ICICI etc. often used for commercial real estate
purchases, retrieve real estate from foreclosure. Bridge loans in corporate finance are called gap
financing, and are used to cover the time between redemption of issuance of one bond and its
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replacement by a new issue. Bridge loan may contain a decent proportion of prepaid interest,
sometimes as much as six months. If the home gets sold before that time, you may receive interest
payments back, but if it hasn't sold, you may be required to continue payments.

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OBJECTIVE

OBJECTIVES

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T o ak n oa wly zteh at hcewo nh siocumh eb alron apk ne prs coe hvp etdimo ne ab yt oeAurbt lho ya uen dhsaocymha ecm ol e- oas p.n e or fa At ivb eh yb ua dn ak y a
ac on -do pN eK rGa St iBv ec ob -aonpke r an tdiv Ne Kb Ga Sn Bk c. o - o p e r a t iv e b a n k .
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SCOPE OF THE STUDY

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SCOPE OF THE STUDY

This study is analysis and comparison of home loans provided by the NKGSB COOPERATIVE BANK and ABHYUDAYA CO-OPERATIVE BANK banks. It is helpful in analysing
the home loan service provided to the customer and their comparison.

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RESEARCH METHODOLOGY

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Design of Research:
The research will be exploratory in nature. A population of peoples who take home loan from
these banks will be considered for this study. I will try to explore about the home loans which
would make a difference in the behavior of the consumer. Effort will be made to throw light on
most of the factors which have either indirect or direct effect on the behavior of the consumer. I will
also explore the impact of home loans on the market share of the banks.

Sampling plan:
Population: The study aimed to include the customers of NKGSB CO-OPERATIVE BANK and
ABHYUDAYA CO-OPERATIVE BANK in nawanshahr, to make a comparative analysis of home
loan schemes of these two banks..
Sample Size: A Sample size of 100 respondents will be taken for the current study because it is
not possible to cover the whole universe in the available time period. So it is necessary to take the
sample size. In 100 respondents 50 respondents from ABHYUDAYA BANK and 50 from NKGSB
CO-OPERATIVE BANK. The sample will the peoples of age group lying between eighteen to
thirty years. The sample will be taken in the form of strata based on age, sex, and income group.

Sampling technique:
The sampling technique will be probabilistic sampling more specifically the random
convenient and judgemental sampling will be used. As in probabilistic sampling the select unit for
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observation with known probabilities so that statistically sound assumptions are supported from the
sample to entire population so that we had positive probability of being selected into the sample. I
will go for stratified random sampling as we are interested to study the home loan by NKGSB COOPERATIVE BANK and ABHYUDAYA CO-OPERATIVE BANK banks, so we will make the
strata on the basis of age, occupation, income level, gender. And from each strata we will go for
random sampling.

Sources of Data:
I will use primary source of data that is structured questionnaire. As these banks are established
from so many years, so many researchers have done research on this topic, so we will find
secondary data also and also use this data for the help of this research. So, this research data will
collected from the primary source and secondary source.
Our method of collecting the data is from the questionnaire that will be filled by the respondent
from the sample, it will be structured questionnaire.

Tools and techniques:

As no study could be successfully completed without proper tools & techniques, same with my project.
For the better presentation and right explanation I used tools of statistics and computer very
frequently and I am very thankful to all those tools for helping me a lot. Basic tools which I used
for project are:

Bar charts- pie charts- tables

Bar charts and pie charts are very useful tools for every research to show the result in a clear, simple
way. Because I used bar charts and pie charts in my project for showing data in a systematic way.
So I need not necessary for any observer to read all the theoretical detail, simple on seeing the
charts anybody that what is being said.
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NORTH KARNATAKA GAUD SARASWAT BANK

(NKGSB CO-OPERATIVE BANK)
This bank India's largest commercial bank.
NKGSB CO-OPERATIVE BANK has a vast domestic network of over various branches
(approximately 14% of all bank branches) and commands one-fifth of deposits and loans of all
scheduled commercial banks in India.
This Bank Group includes a network of many banking subsidiaries and several non-banking
subsidiaries offering merchant banking services, fund management, factoring services, primary
dealership in government securities, credit cards and insurance.

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PRODUCT RANGE OF COMPANY/INDUSTRY:

The products and services provided by the NKGSB CO-OPERATIVE BANK are in
various fields, such as:

NRI services
International banking
Corporate banking
Agricultural banking

ABHYUDAYA CO-OPERATIVE BANK:

Abhyudaya Co-operative Bank Ltd. operates as an urban co-operative bank in India. The company
offers various personal banking services, such as saving bank accounts, current accounts, no frillsaccounts, any branch
banking services, and ATM services, as well as various deposit schemes,including saving, current, and term deposit
schemes; and business banking services, which include mobile and Internet banking, NRO/NRE accounts, and foreign
exchange services. Its loan products include personal, housing, education, mortgage, and vehicle loans, as well as loan
against gold ornaments, loan/secured overdrafts, loans against govt. securities, loan secured overdrafts againstgovt.
securities, and loans for women entrepreneurs. The company also provides fax on demandservices that consist of
statement of account, latest balance, and inward clearing cheque details services; telebanking, franking, and lockers
services; real time gross settlement services for customer transaction/remittances; and insurance services. Abhyudaya
Co-operative Bank Ltd. was founded in1964 and is based in Mumbai, India with branch locations in Mumbai, Navi
Mumbai, Pune, Raigad, Thane, Udupi, Manglore, Vadodara, and Ahmedabad, India.
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ABHYUDAYA CO-OPERATIVE BANK are in various fields, such as:

NRI services
International banking
Corporate banking
Agricultural banking

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BANKING SECTORS

OVERVIEW OF THE BANKING SECTORS

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The Banking sector is considered the most lucrative option in todays job market. In the
industry, a position in Treasury or Forex is considered right on top and this is followed by careers
in Private Banking, Investment Banking and Retail Banking. One could work in a variety of areas
in banking industry including Recurring Deposit

HISTORY OF BANKING SECTOR:

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Banking in India has a long and elaborate history of more than 200 years. The beginning
of this industry can be traced back to 1786, when the countrys first bank, Bank of Bengal, was
established. But the industry changed rapidly and drastically, after the nationalization of banks in
1969. As a result, the public sector banks began experiencing numerous positive changes and
enormous growth. Then came the much-talked-about liberalization and economic reforms that
allowed banks to explore new business opportunities and not just remain constrained to generating
revenues from mere borrowing and lending.
This provided the Indian banking scenario a remarkable facelift that only continues to get
better with time. However, even today, despite the foray of foreign banks in the country,
nationalized banks continue to be biggest lenders in the country. This is primarily due to the size of
the banks and the penetration of the networks
The Indian banking system can be classified into nationalized banks, private banks and
specialized banking institutions. The industry is highly fragmented with 30banking units
contributing to almost 50% of deposits and 60% of advances. The Reserve Bank of India is the
foremost monitoring body in the Indian Financial sector. It is a centralized body that monitors
discrepancies and shortcomings in the system. Industry estimates indicate that out of 274
commercial banks operating in the country, 223 banks are in the public sector and 51 are in
the private sector.
These private sector banks include 24 foreign banks that have begun their operations here.
The specialized ZZ banking institutions that include cooperatives, rural banks, etc. form a part of
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the nationalized banks category. Opportunities The Banking sector is considered the most lucrative
option in todays job market. In the industry, a position in Treasury or Forex is considered right on
top and this is followed by careers in Private Banking, Investment Banking and Retail Banking.
One could work in a variety of areas in banking industry including Recurring Deposit account,
banking officer, probationary officer, loan officer, assessor, personal loan officer, home loan officer,
home loan agent, loan manager, mortgage loan underwriter, loan processing officer, accountant,
product marketing and sales executive, and customer service executive among others. In the
Financial Services, some of the important jobs include that of a stockbroker who is essentially
a person who buys and sells securities on behalf of individuals and institutions for some
commission. While some brokers like to practice with individual clients others work for
institutions. Brokers who work for institutional investors are often called securities traders. Many
prefer to work as dealers, advisors and securities analysts. Security analysts are those who advise
companies on floatations of shares as they are expected to have sound knowledge of capital
markets. Investment analysts are the backbone of the financial services sector. They study the
financial reports of companies, assess various statistical information, profitability projections ,
compare financial results, survey the industry as a whole and on the basis of the available
information, and finally conclude to a decision. Equity Analysts do jobs similar to investment
analysts and research the equity markets and make predictions. The home loan industry is
experiencing a growth of 25% this year, as against 30%growth in home loans earlier. Rajiv
Sabharwal , senior general manager, ICICI Bank.

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Growth:
The limit for foreign direct investment in private banks has been increased from 49%to
74%. In addition, the limit for foreign institutional investment in private banks is49%.
Liberalization and globalization have created a more challenging environment in the banking sector
as well as in the other segments of the financial sector such as mutual funds, Non Banking Finance
Companies, post offices, capital markets, venture capitalists, etc.
Research and Markets has announced the addition of 'Indian Retail Banking, 2006' to their
offering. Indian Retail Banking continues to redefine the credit growth in the country. It grew by a
whopping 44.4% in 2005-06 to touch Rs 3,538 billion.
This leap was despite the increase in risk weight by RBI for housing and real estate loans
during August, 2005. Housing, which constitutes more than 52% of all retail loans, grew at rate of
44.35% during 2005-06. In order to help banks in India to understand the market and competition
and plan future strategies, we have just come out with an Industry Insight on Indian Retail banking,
account, banking officer, probationary officer, loan officer, assessor, personal loan officer, home
loan officer, home loan agent, loan manager, mortgage loan underwriter, loan processing officer,
accountant, product marketing and sales executive, and customer service executive among others.
In the Financial Services, some of the important jobs include that of a stockbroker who is
essentially a person who buys and sells securities on behalf of individuals and institutions for some
commission. While some brokers like to practice with individual clients others work for
institutions.
Brokers who work for institutional investors are often called securities traders. Many
prefer to work as dealers, advisors and securities analysts. Security analysts are those who advise
companies on floatations of shares as they are expected to have sound knowledge of capital
markets. Investment analysts are the backbone of the financial services sector. They study the
financial reports of companies, assess various statistical information, profitability projections,
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compare financial results, survey the industry as a whole and on the basis of the available
information, and finally conclude to a decision.
Equity Analysts do jobs similar to investment analysts and research the equity markets and
make predictions. The home loan industry is experiencing a growth of 25% this year, as against
30%growth in home loans earlier. Rajiv Sabharwal, senior general manager, ICICI Bank, , which
has recorded the highest incremental growth in home finance segment in recent past, said, The real
estate prices have become very high in few markets, which has resulted in the fall in growth rates
for home loans for the banking industry. Home loan growth has reduced to 25% from its earlier
growth rate at 30% and since we are an integral part of the industry, there will be some impact on
us too.
He added that the bigger impact had come from real estate prices, but obviously interest
rates hikes will also have an impact. He, however, declined to disclose the banks current home loan
growth rate. Echoing a similar view, a senior official of NKGSB co-operative bank (NKGSB COOPERATIVE BANK) said the home loan market is showing some signs of slowing down.
However, another major player, Housing Development Finance Corporation (HDFC)said the
housing finance market for the middle class segment was growing at a healthy pace.
ABHYUDAYA CO-OPERATIVE BANK Bank is a leading home loan lender of the country with
about 30% market share. Retail lending comprises 70% of the total loan portfolio of the bank, of
which the home loan lending is about 50%. In the first half of fiscal 2007, the bank experienced
total home loan disbursements of Rs 13,400 crore.

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MAJOR PLAYERS
The financial sector in India has become stronger in terms of capital and the number of
customers. It has become globally competitive and diverse aiming, at higher productivity and
efficiency. Exposure to worldwide competition and deregulation in Indian financial sector has led to
the emergence of better quality products and services. Reforms have changed the face of Indian
banking and finance. The banking sector has improved manifolds in terms of capital adequacy,
asset classification, profitability, income recognition, provisioning, exposure limits, investment
fluctuation reserve, risk management, etc.
10 PLAYERS IN INSURANCE
Life Insurance corporation of India Bajaj Allianz General Insurance ICICI Prudential Life
Insurance ICICI Lombard General Insurance Birla Sun life Insurance Tata AIG General Insurance
New India Assurance Co. Iffco Tokio General Insurance Oriental Insurance Co. HDFC Standard
Life Insurance

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PROFILE OF THE ORGANISATION:

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PROFILE OF ABHYUDAYA CO-OPERATIVE BANK:

The profile of the ABHYUDAYA CO-OPERATIVE BANK shows superior :Page

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Banking services
Strengthen the infrastructure in the government securities market in order to make it vibrant,
liquid and broad based.
Incorporate, personal and international banking, industrial and agricultural finance
and finance of trade. Abhyudaya bank boasts of a varied clientele consisting of small
and medium industrial units, exporters, multi-national companies, Indian
conglomerates and NRI. The Bank is changing outdated front and back end processes
to modern customer friendly processes to help improve the total customer
experience.
With about of its own various branches and another various branches of its Associate Banks
already networked, today it offers the largest banking network to the Indian customer. The Bank is
also in the process of providing complete payment solution to its clientele with its over ATMs, and
other electronic channels such as Internet banking, debit cards, mobile banking, etc. The objectives
of the Company are in line with objectives laid down by RBI for the Primary Dealers:
Ensure the development of underwriting and market making capabilities for
Government Securities
Improve secondary market trading system, which would contribute to price
discovery, enhance liquidity and turnover and encourage voluntary holding of
Government securities amongst a wider investor base
Become an effective conduit for conducting open market operations.

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PROFILE OF NKGSB CO-OPERATIVE BANK:

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NKGSB was established by a great visionary Sheth Shantaram Mangesh Kulkarni on 26th
September, 1917.The Bank is now a Multi-State Bank having its area of operation in the States of
Maharashtra, Karnataka, Goa, Gujarat and Union territories of Daman, Diu, Dadra and Nagar Haveli.
Over the years, the Bank has consistently shown healthy growth both quantitatively and qualitatively.
The Bank has not only grown in size of deposits and advances, but has multiplied its net worth making
the institution financially sound and fundamentally strong.
The NKGSB CO-OPERATIVE BANKs powerful corporate banking formation deploys
multiple channels to deliver integrated solutions for all financial challenges faced by the corporate
universe. The Corporate Banking Group and the National Banking Group are the primary delivery
channels for corporate banking products. The Corporate Banking Group consists of dedicated
Strategic Business Units that cater exclusively to specific client groups or specialize in particular
product clusters.
Foremost among these a specialized group is the Corporate Accounts Group
(CAG),focusing on the prime corporate and institutional clients of the countrys biggest business
centers. The others are the Project Finance unit and the Leasing unit. The National Banking Group
also delivers the entire spectrum of corporate banking products to other corporate clients, on a
nationwide platform.
The bank is also looking at opportunities to grow in size in India as well as Internationally.
It has also 7 Subsidiaries in India NKGSB CO-OPERATIVE BANK Capital Markets, NKGSB
CO-OPERATIVE BANKCAP Securities, NKGSB CO-OPERATIVE BANK DFHI,NKGSB COOPERATIVE BANK Factors, NKGSB CO-OPERATIVE BANK Life and NKGSB COPage
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OPERATIVE BANK Cards - forming a formidable group in the Indian Banking scenario. It is in
the process of raising capital for its growth and also consolidating its various holdings.
Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and
take all employees together on this exciting road to Transformation. In a recently concluded mass
internal communication programme by the Bank rolled out over two day workshops across the
country and covered over large number of employees in a period of 100 days using about 400
Trainers, to drive home the message of Change and inclusiveness. The workshops fired the
imagination of the employees with some other banks in India as well as other Public Sector
Organizations seeking to emulate the programme.

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BANKS HISTORY:

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ABHYUDAYA CO-OPERATIVE BANK HISTORY:

The Beginning :
A dedicated group of social workers and labour movement activists, imbued with the spirit
of service to the cause of mill workers, other industrial and hitherto neglected economically weaker
sections of society started Abhyudaya Co-op. Credit Society Ltd. in 1964, with a small share capital
of Rs. 5,000. The area of Kalachowki, Sewri, Parel and their surroundings were predominantly
populated by low income industrial labour and lower middle class people at that time. In a short
period of time Abhyudaya Co-op. Credit Society got converted into an Urban Co-op. Bank finally
in June 1965, Abhyudaya Co-op. Bank Ltd. was established with the motto of "Prosperity through
Co-operation".
The Bank was conferred with Scheduled Bank status by Reserve Bank of India in September
1988. Over a span of 48 years, it became one of the leading Urban Co-op. Bank in the country with
branches in Metropolitan Mumbai, Navi Mumbai, Pune, Thane, Raigad, Nagpur, Nashik, Nanded,
Kankavali and Aurangabad in Maharashtra State, Vadodara and Ahmedabad in Gujarat State, Udupi
and Mangalore in Karnataka State. On 11th January, 2007 the Bank was registered as a MultiState
Co-op. Bank by the Central Registrar, New Delhi. The area of operation of the bank is confined to 3
States - Maharashtra, Gujarat and Karnataka. The Bank further proposes to extend its area of
operation to other States. The merger of Citizen Co-operative Bank Ltd, Pune, Shree Krishna
Sahakari Bank Ltd., Vadodara, Gujarat State, Janatha Co-op. Bank Ltd., Udupi, Karnataka State
and Manekchowk Co-op. Bank Ltd., Ahmedabad, Gujarat State has been effected. For the F.Y.
2012-13, Bank has set a target of achieving a business mix of
Growth & Strength :
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Rs.13,200 Crore.

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As on 31st March, 2012 the bank has 1.46 lakh members and more than 16.38 lakh depositors.
During the F.Y. 2011-12, Bank has achieved a substantial growth in all perspectives reflecting an
overall growth of 25.05 % in business mix & total business mix of the bank has reached over Rs.
10,896 Crore. As on 31st March, 2012 Bank's Deposits increased by 23.91% to Rs. 6518.85 Crore
and Advances increased by 26.79% to Rs. 4377.53 Crore. The Bank has maintained a ratio of
CASA Deposits to Total Deposits as high as 34.88%. The strength of the Bank is reflected in the
fact that it's Paid up Capital and Reserves have amounted to Rs. 952.22 Crore and Investments are
to the tune of Rs. 2503.93 Crore. The Capital Adequacy Ratio maintained by our bank is as high as
14.48% as against RBI stipulation of 9%. As on 31st March, 2012 the Net Profit of the Bank after
tax / provisions stood at Rs. 80.17 Crore. The statutory Auditors have continuously awarded class
'A' rating to the Bank.

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NKGSB CO-OPERATIVE BANK HISTORY:

NKGSB was founded by a great visionary Sheth Shantaram Mangesh Kulkarni on 26th
September, 1917.
The Bank with a modest beginning in 1917, is now a Multi-State Bank having its area of operation
in the States of Maharashtra, Karnataka, Goa, Gujarat and Union territories of Daman, Diu, Dadra
and Nagar Haveli.
Today the Bank has 65 branches spread over in the state of Maharashtra, Goa , Karnataka & Gujarat.
Mumbai - 35 branches
Navi Mumbai Vashi, CBD Belapur, Panvel, Nerul, Kharghar & Kamothe (6 branches)
Maharashtra other than Mumbai - Pune (Kothrud, Aundh, Chikhli, Chakan, Bhosari &
Magarpatta), Kolhapur (Kolhapur Main & Uma talkies. These are take over of Shahu Co-operative
Bank, Ichalkaranji), Nashik (Nashik & Ambad) & Sindhudurg (Kudal) and Ratnagiri
Goa- Ponda, Panaji, Madgaon & Mapusa, Karnataka Karwar- Main. Karwar -Baad, Hubli,
Belgaum & Sirsi. Gujarat Vadodara, Surat.

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Over the years, the Bank has consistently shown robust growth both quantitatively and qualitatively.
The Bank has not only grown in size of deposits and advances, but has multiplied its net worth
making the institution financially sound and fundamentally strong.
The Board of Directors of the Bank consists of well qualified professionals enriched with varied
experience in the strategic fields of Finance, Technology, Business and Management. Being driven
by the co-operative principles, management lays emphasis on profits but with focus on the welfare
of our stakeholders.
As a part of good governance practice, the Bank has adopted code of good business principles and
accepted the responsibility to ensure that they are observed down the line as a work culture in its
true spirit. The business philosophy is based on four core values i.e. pillars of service excellence,
customer focus, product innovation and resourceful people.
In terms of our commitment for harnessing the state of art technology, networking all 65 branches
counter under Core banking solution, customers can access their accounts and perform banking
operations anywhere anytime with value added services.
The Bank has varied Deposit products to suit every needs of customers, so also the bank has
occupied a place of pride with those who are financed for offering tailor-made complete credit
solutions under one roof packaged at liberal, competitive and flexible terms, let it be personal
finance or loan facilities for Short term as well Long term requirement of Small Businessman,
Professionals, Small & Medium Enterprises and Corporates.
The Bank has always been in the forefront to add on value to its products and has entered into
correspondent relationship and strategic alliances to offer best of the services to its customers
efficiently and with convenience such as:
Tied-up with Insurance Companies to sell both the insurance products, life insurance with Max
New York Life and non-life with Oriental Insurance Company Ltd.
A member of payment & settlement gateways of RBI through INFINET and RTGS system by way
of Electronic Fund Transfer (EFT) and Electronic Cheque Clearing (ECC), which provides instant
realization of funds & speedy remittances including Electronic Clearing System (ECS) both account
debit & credit.
Provides Demand Draft facility under arrangement with private sector bank
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Amongst few Co-operative banks, having secured License as Authorised Dealer Category II of RBI
which offers sale and purchase of foreign exchange, foreign remitances, etc.
Also caters to Forex business needs through foreign exchange arrangement made with private sector
bank.
Tied up with UA EXchange for fast inward remittance of foreign exchange.
Providing facilities - Pension a/cs, SMS Banking and also iConnect for hassle free payment of
taxes.
Tied up with NSDL as a Depository Participant offering Demat services at all our branches.

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RECENT ACHIVEMENTS AND MILESTONES:

PERFORMANCE OF COMPANTY IN LAST FIVE YEARS:

ABHYUDAYA BANK PERFORMANCE IN LAST FIVE YEARS:

The story of Ghandatjis life proves how a well-meaning person can do wonders if he has purity of
intention. Ghandat was a peon in Maharashtra Assembly once upon a time. Now for the past 17 years
he is its member and has been elected on independent ticket thrice.

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One commands such respect only if he is innately honest and cooperative. See the credibility of this
man who started Abhyudaya Cooperative bank with paltry Rs 5000 in the year 1965. And now he has
taken it to the heights of Rs 11000 crores.
Ghandat is not only honest. He is visionary also. Setting up the bank in the Jhopadpatti of Ambabadi in
Mumbai way bay 1965 he was struggling for collection of even Rs 10. Trying to entice factory workers
to become member of Abhyudaya Bank he began giving loansloans which could be as small as Rs
1000.
It clicked. And he went on to give small loans for buying taxis. Since then he has not looked back.
Abhyudaya Cooperative Bank is headquartered in Mumbai with 105 branches spread across many
states. We have branches in Ahmadabad, Baroda, Udipi and practically in all major towns of
Maharashtra informs Shri Ghandat to Indiancooperative.com. Five Urban Cooperative Banks have
gone global with its members are now able to access 67,000 ATMs.
These banks are Abhyudaya Cooperative Bank, Kalyan Janata Sahakari Bank, Punjab & Maharashtra
Cooperative Bank, Thane Janata Shakari Bank and Dombivli Nagari Sahakari Bank.
n December 2009, National Payments Corporation of India (NPCI) took over the operations of NFS
from IDRBT. NPCI connects directly to the individual banks switch or through their shared ATM
Network Switch. As of December 2010, NPCI covers 52 member banks with over 67,000 ATMs.
The Solution integrates the banks ATM switch with NPCI, facilitating routing of ATM transactions
through inter-connectivity between the banks switches.

NKGSB CO-OPERATIVE BANK PERFORMANCE IN LAST FIVE YEARS:

NKGSB co-operative bank (NKGSB CO-OPERATIVE BANK) is all geared up to increase it
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business per employee and profit per employee as it thinks that for NKGSB CO-OPERATIVE
BANK, these two parameters are among the lowest in the industry. On one hand, the bank is trying
to reduce its staff strength which would eventually improve the ratios; but on the other, the bank is
also going flat out to increase its customer base."Our business per employee and profit per employee
is one of the lowest in the industry," NKGSB CO-OPERATIVE BANK had recently said in a joint
statement issued by the management and unions.
NKGSB CO-OPERATIVE BANK's generates of business per employee, while its profit per
employee is nice as compare. By contrast, majority of the large public sector banks are better in
terms of both these parameters. For instance, Canara Bank has a business per employee (BPE) of
Rs 4.42 crore, whileUnion Bank of India's BPE is at Rs 4.36 crore and Bank of Baroda's (BoB) Rs
3.51crore. These are according to their respective annual reports for 2005-06.On the other hand,
Canara Bank's profit per employee (PPE) is also on the higher side at Rs 3.02 lakh. The PPEs of
Union Bank and BoB are at Rs 2.66 lakh and Rs 2.13lakh, respectively
"Over the years, we have been steadily losing our market share from about 35% in1970s
to around 16% in 2006. Our vast network is failing to attract the new and demanding young
customers," NKGSB CO-OPERATIVE BANK said in that statement, which is addressed to all
NKGSB CO-OPERATIVE BANK officers and employees and aimed at changing their attitude
towards customers.
The statement was jointly signed by chairman OP Bhatt, managing directors TS
Bhattacharya and Yogesh Agarwal and top office bearers of its officers and employees associations.
To address these issues, both the management and unions have agreed to work hand in hand. They
have appealed to the bank's staffs to go flat out to increase its customer base."Let us be conscious of
the customer's overall needs rather than only the transaction at hand. Let us expand our customer
base," the statement read. The bank has nearly 37 lakh savings bank accounts in the Bengal
circleitself.Meanwhile, the country's largest and oldest bank has offered an exit optionscheme
(EOS) to its employees.

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HOME LOANS OF ABHYUDAYA BANK

Purpose : Purchase of Flat (New or Resale); Construction of House, Extension to

existing Flat / House,etc
Eligibility : The Co-applicant is necessary for Housing Loans. Co-applicant will mainly be spouse

or son or daughter or father or mother of the Principal Borrower and he/she may be an earning or
non-earning member. In these cases the income of the Co-Applicant can be clubbed for calculation
of eligible loan amount. In the absence of the above Co-applicants, Brother or Sister may be taken as
Co-applicant, but their Income shall not be clubbed for calculation of eligible loan amount. Property
should be in the name of Applicant
Quantum of loan : Up to 80% of agreement value plus stamp duty and registration
fee for salaried person
Up to 75 % of agreement value plus stamp duty and registration fee for professionals
Up to Rs. 50.00 Lacs
Documentation :
Copy of Agreement or Allotment Letter
Chain of Agreements in case of re-sale
NOC from Society / Builder
Share Certificate of the Society in the name of seller
Leave & License Agreement if the applicant is currently staying on rent

Security
Surety
Repayment
Privilege
security with

: Equitable Mortgage of the premise

: 2 Guarantors
: Up to 15 years
: Enjoy additional Life Cycle Banking against same
minimum documentation in a hassle free

way

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HOME LOANS OF NKGSB BANK

Realize your dream with a complete package to meet all your housing finance needs
Features & Benefits
Interest charged on daily reducing basis
No pre-payment charges for repayment through own source
Attractive interest rate
Simplified documentation
Easy repayment options - ECS/ Post dated cheque / Standing Instruction
Low processing fees
Speedy loan approval
Offers Insurance cover for all assets at attractive premium
Purpose : Purchase residential premises
Eligibility : Salaried / Professional / Businessmen
Quantum of loan : Up to 80% of agreement value plus stamp duty and registration
fee for salaried person
Up to 75 % of agreement value plus stamp duty and registration fee for professionals
Up to Rs. 50.00 Lacs
Documentation :
Copy of Agreement or Allotment Letter
Chain of Agreements in case of re-sale
NOC from Society / Builder
Share Certificate of the Society in the name of seller
Leave & License Agreement if the applicant is currently staying on rent

Security
Surety
Repayment

: Equitable Mortgage of the premise

: 2 Guarantors
: Up to 15 years

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Privilege

: Enjoy additional Life Cycle Banking loan against

same security with

minimum documentation in a

hassle free way

FUTURE PLANS:

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ABHYUDAYA CO-OPERATIVE BANK FUTURE PLANS:

ABHYUDAYA CO-OPERATIVE BANK has initiated various steps in a bid to expand its
operations in their branches. These include opening new branches and increasing the number of
its core banking solutions branches. ABHYUDAYA CO-OPERATIVE BANK currently has 71
CBS branches in maharashtra and has registered good growth from this region. ABHYUDAYA COOPERATIVE BANK in looking at increasing its international presence and in line with this, the
company is planning to set up offices in other parts of Maharashtra. The Canada office is likely to
open very soon, while the other locations are likely to commence operations by end of this fiscal
year. ABHYUDAYA CO-OPERATIVE BANK unvieled its plans to raise additional capital of Rs.
21,000 million to fund its business expansion plans for this current fiscal.

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NKGSB CO-OPERATIVE BANK FUTURE PLANS:

NKGSB CO-OPERATIVE BANK has set for it self an ambitious target of credit linking 1
million SHGs up to March2008.The Bank has started to leverage our vast SHG network for various
services beyond credit delivery. The NKGSB co-operative bank (NKGSB CO-OPERATIVE BANK)
has formulated a home-grown strategy to merge its six associated banks with it within this fiscal.
NKGSB CO-OPERATIVE BANK drawn up a home-grown strategy to carry out the merger
programme and we may take up such mergers one by one, or two at a time or in a phased manner.
NKGSB CO-OPERATIVE BANK want the future mergers to be as smooth as the merger. Postmerger, the size of NKGSB CO-OPERATIVE BANKs balance sheet will cross
its profitablity will increased.

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crore and

[Type text]

REVIEW OF LITERATURE:
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In august 2001 James B. Thomson and Federal Home Loan Bank Lending to Community Banks
are Targeted Subsidies Necessary? The Gramm-Leach-Bliley Act of 1999 amended the lending
authority of the Federal Home Loan Banks to include advances secured by small enterprise loans
of community financial institutions. Three possible reasons for the extension of this selective
credit subsidy to community banks and thrifts are examined, including the need to: subsidize
community depository institutions, stabilize the Federal Home Loan Banks, and address a
market failure in rural markets for small enterprise loans. They empirically investigate whether
funding constraints impact the small-business lending decision by rural community banks.
Specifically, they estimate two empirical models of small-business lending by community banks.

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The data reject the hypothesis that access to increased funds will increase the amount of smallbusiness loans made by community banks.

In December 2006 Fulbag Singh and Reema Sharma had studied about the housing Finance in
India. Housing, as one of the three basic needs of life, always remains on the top priority of
any person, economy, government and society at large. In India, majority of the population lives
in slums and shabby shelters in rural areas. From the last decade, the Government of India has
been continuously trying to strengthen the housing sector by introducing various housing loan
schemes for rural and urban population. The first attempt in this regard was the National
Housing Policy (NHP), which was introduced in 1988.The National Housing Bank (NHB) was
set up in 1988 as an apex institution for housing finance and a wholly-owned subsidiary of
Reserve Bank of India (RBI). The main objective of the bank is to promote and establish the
housing financial institutions in the country as well as to provide refinance facilities to housing
finance corporations and scheduled commercial banks. Moreover, for the salaried section, the
tax rebates on housing loans have been introduced. The paper is based on the case study of
LIC Housing Finance Ltd., which analyzes region-wise disbursements of individual house loans,
their portfolio amounts and the defaults for the last ten years, i.e., from 1995-96 to 2004-05by
working out relevant ratios in terms of percentages and the compound annual growth rates. A
relevant chart has also been prepared to highlight the results.
In May 18, 2007 Michael LaCour-Little had studied about the Economic Factors Affecting
Home Mortgage Disclosure Act Reporting. The public release of the 2004-2005 Home Mortgage
Disclosure Act data raised a number of questions given the increase in the number and
percentage of higher-priced home mortgage loans and continued differentials across
demographic groups. Here we assess three possible explanations for the observed increase in
2005 over 2004:
(1) changes in lender business practices;
(2) changes in the risk profile of borrowers; and
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(3) changes in the yield curve environment.

Results suggest that after controlling for the mix of loan types, credit risk factors, and the yield
curve, there was no statistically significant increase in reportable volume for loans originated
directly by lenders during 2005, though indirect, wholesale originations did significantly increase.
Finally, given a model of the factors affecting results for 2004-2005, we predict that 2006 results
will continue to show an increase in the percentage of loans that are higher priced when final
numbers are released in September 2007.
In may 1991 Stephen F. Borde had studied about the Is the Savings and Loan Industry
Facing Extinction? This article tells about the Saving and loan crisis. Proposed solutions are
discussed in the context of the industry as it currently stands. With a somewhat similar
liability structure to that of banks (mainly short-term deposits), the asset structure of S&Ls is
quite different. Whereas banks assets consist of short-term loans, S&L assets consist largely
of long-term loans, such as home ownership mortgages. Therefore, in the absence of
adequate hedging measures, S&Ls are more vulnerable to interest rate risk, which can lead to
lower profits when interest rates rise.
In June 29, 2001 Joshua Rosner had studied about the Housing in the New Millennium: A
Home Without Equity is Just a Rental with Debt. They studied about the prospects of
the U.S. housing/mortgage sector over the next several years. Based on our analysis, we
believe there are elements in place for the housing sector to continue to experience growth
well above GDP. However, we believe there are risks that can materially distort the growth
prospects of the sector. Specifically, it appears that a large portion of the housing sector's
growth in the1990's came from the easing of the credit underwriting process. Such easing
includes:* The drastic reduction of minimum down payment levels from 20% to 0%* A
focused effort to target the "low income" borrower* The reduction in private mortgage
insurance requirements on high loan to value mortgages* The increasing use of software to
streamline the origination process and modify/recast delinquent loans in order to keep them
classified as "current"* Changes in the appraisal process which has led to widespread over
appraisal/over-valuation problems If these trends remain in place, it is likely that the home
purchase boom of the past decade will continue unabated. Despite the increasingly more
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difficult economic environment, it may be possible for lenders to further ease credit
standards and more fully exploit less penetrated markets. Recently targeted populations that
have historically been denied homeownership opportunities have offered the mortgage
industry novel hurdles to overcome. Industry participants in combination with eased
regulatory standards and the support of the GSEs (Government Sponsored Enterprises) have
overcome many of them. If there is an economic disruption that causes a marked rise in
unemployment, the negative impact on the housing market could be quite large. These
impacts come in several forms. They include a reduction in the demand for homeownership,
a decline in real estate prices and increased foreclosure expenses. These impacts would be
exacerbated by the increasing debt burden of the U.S. consumer and the reduction of home
equity available in the home. Although we have yet to see any materially negative
consequences of the relaxation of credit standards, we believe the risk of credit relaxation
and leverage can't be ignored. Importantly, a relatively new method of loan forgiveness can
temporarily alter the perception of credit health in the housing sector. In an effort to keep
homeowners in the home and reduce foreclosure expenses, holders of mortgage assets are
currently recasting or modifying troubled loans. Such policy initiatives may for a time distort
the relevancy of delinquency and foreclosure statistics. However, a protracted housing
slowdown could eventually cause modifications to become uneconomic and, thus, credit
quality statistics would likely become relevant once again. The virtuous circle of increasing
home ownership due to greater leverage has the potential to become a vicious cycle of lower
home prices due to an accelerating rate of foreclosures.
In December 2002 Melissa B. Jacoby had studied about the Home Ownership Risk Beyond a
Subprime Crisis: The Role of Delinquency Management. They studied that Public
investment in and promotion of homeownership and the home mortgage market often relies
on three justifications to supplement shelter goals: to build household wealth and economic
self-sufficiency, to generate positive social-psychological states, and to develop stable
neighborhoods and communities. Home ownership and mortgage obligations do not
inherently further these objectives, however, and sometimes undermine them. The most
visible triggers of the recent surge in sub prime delinquency have produced calls for
emergency foreclosure avoidance interventions (as well as front-end regulatory fixes).
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Whatever their merit, I contend that a system of mortgage delinquency management should
be an enduring component of housing policy. Furtherance of housing and household policy
objectives hinges in part on the conditions under which homeownership is obtained,
maintained, leveraged, and in some situations - exited. Given that high leverage or trigger
events such as job loss and medical problems play significant roles in mortgage delinquency
independent of loan terms, better origination practices cannot eliminate the need for
delinquency management. One function of this brief essay is to identify an existing rough
framework for managing delinquency. Legal scholarship should no longer discuss
mortgageen forcement primarily in terms of foreclosure law and instead should include other
debtor-creditor laws such as bankruptcy, industry loss mitigation efforts, and third-party
interventions such as delinquency housing counseling. In terms of analyzing this framework,
it is tempting to focus on its impact on mortgage credit cost and access or on the absolute
number of homes temporarily saved, but my proposed analysis is based on whether the
system honors and furthers the goals of wealth building, positive social psychological states,
and community development. Because those ends are not inexorably linked to ownership
generally or owning a particular home, a system of delinquency management that honors
these objectives should strive to provide fair, transparent, humane, and predictable strategies
for home exit as well as for home retention. Although more empirical research is needed, this
essay starts the process of analyzing mortgage delinquency management tools in the
proposed fashion.
In 1999 Yoko Moriizumi had studied about the Current Wealth, Housing Purchaseand Private
Housing Loan Demand in Japan. Japanese households accumulate wealth for down payments
at a high rate. Therefore, current wealth plays an important role in home acquisition as public
loans whose direct mortgage lending is a strong support for home purchasers. We estimate
the wealth effect on private mortgage debt as well as housing consumption by applying a
model where mortgage debt demand is derived from house purchase decisions and is
determined jointly with housing consumption. We use a simultaneous equation Tobit
estimation method. Wealth effects on private mortgage debt, likelihood of borrowing, and
housing consumption are not elastic. On the other hand, a change in housing consumption
affects the likelihood of borrowing elastically much more than the private mortgage amount
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of borrowers. Housing and private mortgage markets fluctuate very closely with the number
of participants in the mortgage market. Therefore, the number of housing starts is linked
strongly to the private mortgagemarket.

Robert B. Avery and Allen N. Berger had studied about the Loan commitmentsand
bank risk exposure. They studied about the :
Loan commitments increase a bank's risk by obligating it to issue future loans under terms that it
might otherwise refuse. However, moral hazard and adverse selection problems
potentially may result in these contracts being rationed or sorted. Dependingon the relative risks of
the borrowers who do and do not receive commitments, commitment loans could be safer or riskier
on average than other loans. theempirical results indicate that commitment loans tend to have
slightly better than average performance, suggesting that commitments generate little risk or that
this risk is offset by the selection of safer borrowers.
Sumit Agarwal Souphala Chomsisengphet And John C. Driscoll had studiedabout the
Loan commitments and private firms.They studied that,
Most loans are in the form of credit lines. Empirical studies of line demand have been complicated
by their use of data on publicly traded firms, which have a wide menu of financing options. We
avoid this problem by using a unique proprietary data set from a large financial institution of loan
commitments made to 712 privately-held firms. We test Martin and Santomero's (1997)model, in
which lines give firms the speed and flexibility to pursue investment opportunities. Our findings are
consistent with their predictions. Firms facing higher rates and fees have smaller credit lines. Firms
with higher growth commit to larger lines of credit and have a higher rate of line utilization. Firms
experiencing more uncertainty in their funding needs commit to smaller credit lines. Almost all
firms convert unused credit line portions into spot loans and take out new lines`.

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QUESIONAIRES

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1}From how many years you are associated with this bank?
Less than 1 year , less than 5 years, More than 5 yrs
Interpretation:Total Number of Respondents was 46
10 persons are associated less than 1 year
24 persons are associated from 1-5 years.

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[Type text]

12 persons are associated from more than 5yrs

no. of person

less than 1 yr

1 to 5 yr

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more than 5 year

[Type text]

2}How do you come to know about the home loan schemes of that bank?
Interpretation:Total No. of Respondent 57 %
28 % from television
18% from newspaper ;
10% from internet

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[Type text]

Sources and percenage

10% internet
18% newspaper
28% television

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3}Are you aware of these type of home loans?

Interpretation:Home purchase loan 22%
Home construction loan 19%
Home improvement loan 11%
Home extention loan 15%
Home equity loan 8%
Land purchase loan 25%

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awareness about product

Home purchase loan 22%

Home construction loan 19%
Home improvement loan
11%
Home extention loan 15%
Home equity loan 8%
Land purchase loan 25%

4}Are you aware all terms and conditions of home loans?

Interpretation:
Total No. of Respondent are 75%
54% Yes
21%No
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awereness of terms and condition

Yes
No

5}Are you satisfy with the interest rate charges by your bank?
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[Type text]

Interpretation:Strongly agree 30%

Agree 48%
Strongly disagree 8%
Disagree 14%

Satisfaction about int. rates

Strongly agree 30%

Agree 48%
Strongly disagree 8%
Disagree 14%

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[Type text]

6}Your bank offer which type of services ?

Interpretation:Mobile banking
Net banking

services and users

mobile banking
net banking

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[Type text]

7}Do you agree that your bank loan processing is fast?

Interpretation:Strongly agree 30%
Agree 45%
Strongly disagree 10%
Disagree 15%

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[Type text]

processing of loan

Strongly agree 30%

Agree 45%
Strongly disagree 10%
Disagree 15%

8}Do you satisfy with the after home loan services provided by your bank are best
as compare to other bank?
Interpretation:Total no. of respondent 39% of public
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[Type text]

Strongly agree 14%

Agree 12%
Strongly disagree 5%
Disagree 8%

Bank services to customer

Strongly agree 14%

Agree 12%
Strongly disagree 5%
Disagree 8%

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[Type text]

9}Does the cost of home loan is appropriate, according to your demand?

Interpretation:Yes 15%
No 70%

cost of home loan

yes
no

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[Type text]

10}Are you satisfy with the employees behaviour of the bank?

Interpretation:Total no. respondent are 87 people
Strongly agree 26 people
Agree 35 people
Strongly disagree 16 people
Disagree 10 people

customers view

Strongly agree 26
Agree 35
Strongly disagree 16
Disagree 10

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11}Have you face any difficulty during taking the loan?

Interpretation:Yes 65%
No 35%

Loan procedure

YES
NO

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12}Which grade you want to give of home loan schemes of your bank?
Excellent
Good
Average
Below average

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Grade

Excellent
Good
Average
Below average

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LIMITATIONS

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Although best of the efforts were made to conduct a prefect survey but still it facescertain
limitation.
Following were certain limitation of this project.
The survey was conducted only on 100 respondents.
Some of the respondents did not answer all the questions, which could hamperthe final
results to a certain extent.
The study confines itself to the respondents of NAWANSHAHAR region only. Hence
findings would not be relevant to other cities.

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CONCLUSION

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All the people are availing loan facility from both the banks. No. of respondents of
NKGSB CO-OPERATIVE BANK were 46 and 47 of NKGSB CO-OPERATIVE BANK Bank.
Peoples are relating with ABHYUDAYA CO-OPERATIVE BANK more satisfy withthe interest rate
as compare to NKGSB CO-OPERATIVE BANK. NKGSB CO-OPERATIVE BANK peoples much
know about home loans . Both Abhyudaya co-operative bank and NKGSB co-operative bank mostly
offer mobile banking services. Processing of NKGSB CO-OPERATIVE BANK is fast then
abhyudaya bank. After home loan services of ABHYUDAYA CO-OPERATIVE BANK is good as
compare to NKGSB CO-OPERATIVE BANK. Peoples related with NKGSB CO-OPERATIVE
BANK is more satisfy with the employee behaviour as compare to abhyudaya bank. People are more
satisfied by NKGSB CO-OPERATIVE BANK for time taken for sanctioning the loan. From all this
I conclude that NKGSB CO-OPERATIVE BANK bank provide good home loan services as
compare to ABHYUDAYA CO-OPERATIVE BANK and many peoples are very satisfied from
NKGSB CO-OPERATIVE BANK.
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REFERENCES:

Page
81

[Type text]

Craig, Ben R. and Thomson, James B.,Federal (August 2001). Home LoanBank Lending to
Community Banks: Are Targeted Subsidies Necessary? FRBof Cleveland Working Paper No. 01-12.
Available at SSRN:http://ssrn.com/abstract=282410 or DOI: 10.2139/ssrn.282410

Singh, Fulbag and Sharma, Reema,(December 2006) Housing Finance in India:A Case Study of
LIC Housing Finance Limited. ICFAI Journal of FinancialEconomics, Vol. 4, No. 4, pp. 63-74,
December 2006. Available atSSRN:http://ssrn.com/abstract=959359

LaCour-Little, (May 18, 2007) Michael,Economic Factors Affecting HomeMortgage Disclosure

Act. SSRN:http://ssrn.com/abstract=992815
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[Type text]

Borde, Stephen F. May/June 1991 ,Is the Savings and Loan Industry FacingExtinction?The Secured
Lender,Vol.47.SSRN:http://ssrn.com/abstract=151018

Rosner, Joshua (June 29, 2001).,Housing in the New Millennium: A HomeWithout Equity is Just a
Rental with Debt,Available atSSRN:http://ssrn.com/abstract=1162456

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