Professional Documents
Culture Documents
ON
ALLAHABAD BANK
TABLE OF CONTENT
PA
GE NO.
CHAPTER-1 Introduction
1.1
1.2
1-27
Introduction
About Allahabad bank
1-1
1-5
6-
16
1.4 Targets & sub target under priority sector
17-19
20-26
26-
26
27-27
28-
39
CHAPTER-3 Research Design
40-
42
3.1 Research methodology
40-
41-
40
41
3.3 Method of data collection
41-42
43-51
CHAPTER-5
52-54
5.1 Findings
52-52
5.3 Conclusion
53-53
5.3 suggestion
54-54
CHAPTER-6
55-55
Bibliography
55-55
LIST OF TABLE
PA
GE NO.
Table no -1 Advance to priority sector.
43-
43
Table no -2 Advances to agriculture sector.
44-44
45-
45
Table no -4 Indirect finance to agriculture sector.
47-47
48-
48
Table no -6 Finance to sector such as housing loan education loan etc.
49
Table no -7 Finance to weaker section.
50-50
49-
LIST OF FIGURE
PA
GE NO.
43-
43
Figure no -2 Advances to agriculture sector.
44-44
46-
46
Figure no -4 Indirect finance to agriculture sector.
4
47-47
48-48
CHAPTER-1
INTRODUCTION OF THE TOPIC
1.1 Introduction
The research project report on financing to priority sector from Allahabad bank
is taken as a part of my 4 th semester course of MBA. Finance to priority sector
is a prime concern for the banks and it is given highest priority .
This chapter contains a brief summary about Allahabad bank and the
research topic. Section 1.2 deals with about Allahabad bank. Section 1.3 deals
with principles of lending and priority sector lending. The section 1.4 contains
target & sub target under priority sector . The section 1.5 contains common
guidelines for priority sector advances . The section 1.6 deals with advances to
priority sector by Allahabad bank. The last Section 1.7 deals with objectives of the
research work.
crores.
1
The Allahabad bank has main branches in Kanpur, Lucknow, Nanital, Kolkatta,
Jabalpur, Meerut, Nagpur, Mumbai, and New Delhi. The Chairman and
Managing Director of Allahabad Bank is Sri K.R. Kamath. Sri K.K. Agarwal and
Sri J.P. Dua are the executive directors of Allahabad Bank.
The
Allahabad
bank
offers
its
services
to
self-employed
persons,
Nineteenth Century
The Oldest Joint Stock Bank of the Country, Allahabad Bank was founded on
April 24, 1865 by a group of Europeans at Allahabad. At that juncture
Organized Industry, Trade and Banking started taking shape in India. Thus,
the History of the Bank spread over three Centuries - Nineteenth, Twentieth
and Twenty-First.
April 24, 1865's
Twentieth Century
1920's
1923
share,
The Head Office of the Bank was shifted to Calcutta
on Business considerations.
Nationalized along with 13 other banks, Branches 151 Deposits - Rs.119 crores, Advances - Rs.82
October, 1989
crores.
United Industrial Bank Ltd. merged with Allahabad
1991
Bank.
Instituted Allahabad Bank Finance Ltd., a wholly
owned subsidiary for Merchant Banking.
3
Twenty-First Century
October, 2002
April, 2005
June, 2006
55.23%.
The Bank Transcended beyond the National
Boundary, opening Representative Office at Shenzen,
Oct, 2006
February, 2007
China.
Rolled out first Branch under CBS.
The Bank opened its first overseas branch at Hong
Kong.
Vision
To put the Bank on a higher growth path by building a Strong Customer-base
through Talent Management, induction of State-of-the-art Technology and
through Structural Re-organization.
Mission
To ensure anywhere and anytime banking for the customer with latest state-ofthe-art technology and by developing effective customer centric relationship
and to emerge as a world-class service provider through efficient utilization of
Human Resources and product innovation.
deposit, but they exist by lending from the deposit on fixed interest charged.
Money lent on interest is always supposed to be secured on some guarantees
or security.
Since banks depend largely on lending, the need to adhere to the basic
principles of lending is quite inevitable. The principles, if strictly followed, will
guarantee depositors and shareholders funds, increase profitability and make
a healthy turn over. Such advances in turn assist in the transformation of rural
environment, promote rapid expansion of banking habit and improve and
boost the nations economy.
The basic considerations in bank lending are the character of the client
seeking loan from the bank. The client must be an honest, upright customer
whose record of transaction with the financial institution or in the society is
remarkable. The information on the character of the borrower could be
obtained through a completed form of his guarantor or his statement of
account.
For effective credit administration, the bank must assign functioning lending
officers, properly trained on lending, to be responsible for evaluation of reports
and collection and reporting findings to relevant senior schedule officers, for
further consideration and final approval or rejection
An internal credits/lending policy should be formulated, implemented and
pursued vigorously by the bank to minimize the risk of default from borrowers.
The successful banks operating within the financial system are those that
consider and coordinate basic principles of lending and monitor the activities
of borrowers regularly.
The major business of banking company is to grant loans and advances to
traders as well as commercial and industrial institutes. The most important use
of banks money is lending. Yet, there are risks in lending. While lending loans
or advances the banks usually keep such securities and assets as a supports
so that lending may be safe and secured. Suppose, any particular state is hit
by disasters but the bank shall get advantages from the lending to another
states units. Thus, the effect on the entire business of banking is reduced. So
the banks follow certain principles to minimize the risk. Following are the
important areas to be taken care while lending:
Basic principles
General principle
Basic principles
The success of banks depends upon the basic principles. These are the prime
principles in lending as well as investment
Safety
Liquidity
Profitability
Safety
Normally the bank uses the money of depositors in granting loans and
advances. Because of that while granting loans the banker should think about
the safety of depositors money. The purpose behind the safety is to see the
financial position of the borrower, whether he can pay the debt as well as
interest easily. Ensuring safety means reducing risk associated with lending.
The risk involved in lending money is the credit risk.ie the possibility of the
borrower not repaying the amount back on the due date. It is necessary for the
banks to maintain expert staff to appraise every credit proposal received by it.
Market risk also there , it can be avoided by preferring high grade securities
of short terns.
Liquidity
It is a legal duty of a banker to pay the total deposited money to the depositor
on demand. So the banker has to keep certain percent cash of the total
deposits in hand. Moreover the bank grants loan. It is also for the addition of
short term or productive capital. Such type of lending is recovered on demand.
A bank must have sufficient liquid assets to meet the demands of the
depositors .The liquid assets must have posses certain characteristics.
It must be convertible in to cash quickly and easily.
The conversion must be without any loss of value or risk
SLR : The Banking regulation act of 1949 , section 24 . states that every
commercial bank have to maintain liquid assets in the form of cash , gold, and
gilt edged securities which is not less than 25 % and not more than 40 % of
NDTL ( Net Demand and Time Liabilities )
Profitability
Commercial banks are profit earning institutes; nationalized banks are also not
an exception. They should have planning of deposits in a profitability way to
pay more interest to the depositors and more salary to the employees. Before
taking any decision the banker should make sure that it is profitable.
PRIORITY SECTOR LENDING
The Government of India through the instrument of Reserve Bank of India
(RBI) mandates certain type of lending on the Banks operating in India
irrespective of their origin. RBI sets targets in terms of percentage (of total
money lent by the Banks) to be lent to certain sectors, which in RBI's
perception would not have had access to organised lending market or could
not afford to pay the interest at the commercial rate. This type of lending is
called Priority Sector Lending. Financing of Small Scale Industry, Small
business, Agricultural Activities and Export activities fall under this category.
This is also called directed credit in Indian Banking system.
Financing Priority Sector in the economy is not strictly on commercial basis as
not only the general approach is liberal but also the rate of interest charged on
such loans is less. Export finance is, in fact, available at a discount of 20% or
more on the normal rate of interest to Indian corporates. Part of the cost of this
concession is borne by RBI by means of refinancing such loans at
10
Liquidity with a banker means Cash on Hand, Cash and Bank balances
customers business
by a borrower
11
4. Small business (Original cost of equipment used for business not to exceed
Rs 20 lakh)
5. Retail trade (advances to private retail traders upto Rs.10 lakh)
6. Professional and self-employed persons (borrowing limit not exceeding
Rs.10 lakh of which not more than Rs.2 lakh for working capital; in the case of
qualified medical practitioners setting up practice in rural areas, the limits are
Rs 15 lakh and Rs 3 lakh respectively and purchase of one motor vehicle
within these limits can be included under priority sector)
7. State sponsored organisations for Scheduled Castes/Scheduled Tribes
8. Education (educational loans granted to individuals by banks)
9. Housing [both direct and indirect loans upto Rs.5 lakhs (direct loans upto
Rs 10 lakh in urban/ metropolitan areas), Loans upto Rs 1 lakh and Rs 2 lakh
for repairing of houses in rural/ semi-urban and urban areas respectively].
10. Consumption loans (under the consumption credit scheme for weaker
sections)
11. Micro-credit provided by banks either directly or through any intermediaty;
Loans to self help groups(SHGs) / Non Governmental Organisations (NGOs)
for onlending to SHGs
12. Loans to the software industry (having credit limit not exceeding Rs 1
crore from the banking system)
13. Loans to specified industries in the food and agro-processing sector
having investment in plant and machinery up to Rs 5 crore.
12
13
14
15
The status of Tiny Enterprises is given to all small scale units whose
investment in plant & machinery is upto Rs. 25 lakhs, irrespective of the
location of the unit.
Small Scale Service & Business Enterprises (SSSBEs)
Industry related service and business enterprises with investment upto Rs. 10
lakhs in fixed assets, excluding land and building will be given benefits of
small scale sector. For computation of value of fixed assets, the original price
paid by the original owner will be considered irrespective of the price paid by
subsequent owners.
Indirect finance in the small-scale industrial sector include
Indirect finance to SSI includes the following important items:
i.
the supply of inputs and marketing of outputs of artisans, village and cottage
industries.
ii.
iv.
vi.
16
vii.
sector.
ix.
Small and marginal farmers with land holding of 5 acres and less and
4.
5.
6.
7.
Scavangers (SLRS).
17
8.
lending
Priority 40 per cent of Adjusted Bank Credit (ABC) or credit
Sector
advances
Agriculture
whichever is higher.
No target.
Advances
18
(service)
enterprises
equipment
up
having
to
investment
in
Rs.2lakh;
enterprises
within
Enterprises
sector
Advances
Minorities.
The targets and sub-targets set under priority sector lending for domestic
and foreign banks operating in India are furnished below :
Domestic banks (both
Foreign banks operating
public sector and private in India
sector banks)
Total Priority Sector
advances
Total agricultural
advances
No target
SSI advances
No target
Export credit
Advances to weaker
sections
No target
20
PHOTOGRAPHS OF BORROWERS
There is no objection to taking photographs of the borrowers for purposes of
identification, banks themselves should
make
photographs and also bear the cost of photographs of borrowers falling in the
category of Weaker Sections.
DISCRETIONARY POWERS
All Branch Managers of banks should be vested with discretionary powers to
sanction proposals from weaker sections without reference to any higher
authority.
MACHINERY TO LOOK INTO COMPLAINTS
There should be machinery at the regional offices to entertain complaints from
the borrowers if the branches do not follow these guidelines, and to verify
periodically that these guidelines are scrupulously implemented by the
branches.
AMENDMENTS
These guidelines are subject to any instructions that may be issued by the RBI
from time to time.
Common Guidelines/Instructions for lending to MSME Sector
22
Revised Simplified application form will be used for Micro and Small
Enterprise. The existing Common loan Application form applicable to all loans
irrespective of limit, will be applicable for Medium Enterprises sector.
ii. Issue of Acknowledgement of Loan Applications:
Each branch will issue an acknowledgement for loan applications received
from the borrowers towards financing under this sector and maintain the
record of the same.
iii. Disposal of Applications:
In case of Loans up to Rs.25000/- : Within 2 weeks
In case of Loans above Rs.25000 : Within 4 Weeks
(Provided the loan applications are complete in all respects and accompanied
by a 'check list' enclosed to the application form).
iv. Register of Receipt/Sanction/Rejection of Applications:
a. A register should be maintained at branch wherein the date of receipt,
sanction /disbursement, rejection with reasons, should be recorded. The
register should be made available to facilitate verification by the Banks
officials including Zonal Manager during visit to the branch.
b. Branch Manager may reject application (except in respect of SC/ST). In the
case of proposals from SC/ST, rejection should be done at a level higher than
Branch Manager.
c. The reason for rejection will be communicated to the borrower in line with
stipulation mentioned in the Fair Practice Lenders Code.
v. Photographs of Borrowers
23
2. Composite Loan
A composite loan with maximum limit upto Rs.1.00crore may be considered by
bank to enable the Micro and Small Enterprises {both for manufacturing and
service sector} to avail of their working capital and Term loan requirement
through Single Window.
3. Types of Loans
The Bank may provide all types of funded and non funded facilities to the
borrower under this sector viz, Term Loan, Cash Credit, Letter of Credit, Bank
guarantee, etc.
4. Margin
Loan Size
Minimum Margin
Up to Rs.25000.00
Nil
Above Rs.25000.00
24
i. While considering proposals under MSME sector, the book debt upto six
months may be treated as a current assets, for the purpose of computation of
permissible bank finance and drawing power calculation.
ii. The margin on the book debts may also be considered at 20% to 25% on
merit of the case.
iii. In regard to age of the book debts, a certificate preferably from Auditors
/Chartered Accountant to be obtained.
iv. All book debts more than 180days are to be treated as Non-current asset.
5. Security
5.1 No collateral or Third party guarantee for advances up to Rs.5.00 Lacs.
5.2 In case of good track record of the borrower Collateral Security and or
third party guarantee may be waived beyondRs. 5.00 Lac but up to Rs.100.00
Lacs, where guarantee cover of 62.50% of the amount of default is available
from CGTMSE, in respect of term loan and/or working capital facilities
extended to new and existing entrepreneur. It has also been stipulated by
CGTMSE that all proposals of sanction of Guarantee approvals for credit
facilities above Rs.50.00 Lacs and up to Rs. 100.00 Lacs will have to be rated
internally by MLIs and should be of investment grade. Accordingly, all
proposals above Rs. 50 Lacs are to be rated on Credit Risk Grading (CRG 2)
as per applicable internal rating modules prescribed under Banks Credit Risk
Management Policy and proposals rated as AB-1 to AB-7 would only be
considered as investment grade subjected to other stipulated norms in
25
Rating
Grade
1.25:1
AB-2
1.5:1
AB-3
1.75:1
2.00:1
26
sector
Agriculture
Direct
Indirect
Micro small
March 2008
Amount
(Rs. crores)
18,774
9,146
6,571
2,575
3,530
27
March 2009
Amount
(Rs. crores)
20,435
March 2010
Amount
(Rs. crores)
24,279
9,568
7,306
2,262
4,593
11,567
8,340
3,227
8,188
enterprices
iii.
Other
b. Weaker
Section
6,098
4,455
6,275
5,010
4,524
6,150
28
CHAPTER-2
Literature Review
The primary objective of social control and nationalisation is to ensure a better
alignment of the commercial banking system to meet the needs of the
economy. It is the duty of the banks to see that credit ows into channels,
which are most productive and most helpful to our growth and development.
To promote the welfare of the people who are socially and economically
backward, the concept of priority sector lending was evolved.
Quantitative targets were set for lending to priority sector and separate
subtargets were also set for lending to agriculture and weaker sections of the
society. As a result, lending to the borrowers in priority sectors have increased
substantially. Increased ow of credit to the different sectors assisted the
developmental activities and thereby expanded the income as well as the
standard of living of the people.
29
P. N. Joshi (1972) requested the RBI to give clear and specic denition of the
different components of priority sectors. Some of the bankers are not clear
about the precise scope of agricultural lending. Guidance from the RBI would
help them to increase their involvement in farm credit on right lines.
30
Vadilal Dagli (1975) is of the opinion that the aim of the banking policy should
be to uplift the under privileged class of the society in rural India from
subsistence existence to surplus existence. The concept of priority sector
should include only the real poor of the country and by providing them
31
necessary financial assistance; they can be lifted from the pitches of animal
existence to the heights of human existence.
R. K. Hazari (1976) made it clear that institutional nancing does not mean
replacing
individual
moneylenders
with
institutionalised
moneylenders.
P. C. D. Nambiar (1977) pointed out that the role of commercial banks in the
priority sectors is not conned merely to the provision of nance. They have to
evaluate the feasibility of the project and assist the entrepreneurs to select the
right type of project. He also emphasised the need for proper co-ordination
between govemment agencies and banks for better results in the development
of priority sectors
32
L. DMello (1980) is very much doubtful about the capacity and suitability of
commercial banks to provide large amount of credit to the priority sectors.
Since banks are high cost organisations, existing developmental agencies can
be used by commercial banks to reduce the cost and to improve efciency in
the use of credit.
33
A. R. Patel and M. R. Patel (1983) proposed the need for assigning the task of
evaluating the working of various schemes under the 20-point programme to
outside agencies not connected with its implementation. This will result in
correct evaluation of the role played by implementing agencies, benets
derived by the beneciaries and deciencies noticed in the plamiing and
implementation process.
34
35
36
I. Satya Sundaram (1984) opines that there is no point in setting up more and
more credit agencies to help the rural poor. The presence of numerous
agencies is creating confusion in the filed of rural credit. What is required is
the proper co-ordination among the various agencies in implementing the
schemes that will be useful to the rural poor.
Raut (1984) conducted a study on the scope and problems of financing tribal
farmers and concluded that the problem of overdues was mainly due to the
misutilisation of loans by the tribal farmers. The tendency to misutilise the loan
was due to the fact that the consumption priorities of tribal farmers were of
more urgent nature than asset building priorities.
Balishter and Roshan Singh (1984) found in their study of IRDP nanced by
SBI in Bichpuri Block of Agra district that the recovery of loans advanced by
the bank under IRDP was satisfactory in all categories of families and this
nullied the common impression that advancing of loans to weaker sections
would lead to accumulation of bad debts.
Anil Kale and Namdeo Mali (1984) conducted a study in some of the droughtaffected villages of Pune and Nagar districts among the farmers and landless
labourers. From the analysis of data collected it is found that the poor people
in rural areas are subjected to various kinds of exploitations by the very
37
D. P. Khankhoje and V. T. Godse (1985) found that procedural aws and gaps
cause delays in the process of loaning activity in the priority sector. So the
systems and procedures adopted by banks particularly with reference to
documentation and accounting have to be simplified. But the simplication of
systems and procedures should not weaken the follow-up, supervision and
control.
38
I. Satya Sundaram (1986) pointed out some of the problems facing the DRI
scheme. Funds are allocated, they are ofcially spent and yet the poor
remains in the same old state. If necessary safeguard are provided, the funds
allocated for this purpose can through up the desired result..
39
Suresh Mehta (2000) noticed that though the banks are ush with surplus
funds, they do not nd it protable and safe in lending to the SSI sector
because they are already saddled with high NPAs in this sector. To reduce the
NPAs level, banks have to strengthen their appraisal system and credit
monitoring mechanism; and SSI units have to develop capabilities to manage
borrowed funds more prudently and more transparently in business
operations. These arrangements will help both the banks and entrepreneurs to
remain happy and prosperous.
40
alleged that while the banks have given the farmers a raw deal, it had writtenoff the loans availed by top industrialists to the tune of rupees one lakh crore
as non- performing assets. The poor farmers house and properties are
auctioned for recovering the loan amount by the banks even though it would
be a meagre amount.
A critical perusal and review of the studies reveal that most of these studies
were not scientically designed and the opinion surveys were not properly
structured. Also most of the ndings were just in the fonn of generalised
observations made with out testing the statistical signicance.
41
CHAPTER-3
RESEARCH DESIGN
This chapter describe the research methodology, research design, method of
data collection and tools & technique which are used for the better
presentation and right explanation of the data.
42
3.3 METHOD OF DATA COLLECTIONThe study is totally based on secondary data to be suitably modified.
43
same
with this project. For the better presentation and right explanation researcher
used tools of statistics and computer very frequently and Basic tools which
have been used for project are:
-BAR-CHARTS
- TABLES
Bar chart is very useful tools for every research to show the result in
a clear, simple way. Because researcher used bar charts in my project for
showing data in a systematic way. So researcher need not necessary for any
observer to read all the theoretical detail, simple on seeing the charts anybody
that what is being said.
Technological Tools:
MS -WORD
MS-EXCEL
44
CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
March 2008
Amount
(Rs. crores)
18,774
March 2009
Amount
(Rs. crores)
20,435
45
March 2010
Amount
(Rs. crores)
24,279
18,774
24,279
2008
2009
2010
20,435
i.
March 2008
Amount
(Rs. crores)
9,146
March 2009
Amount
(Rs. crores)
9,568
46
March 2010
Amount
(Rs. crores)
11,567
financing to agriculture
9,146
11,567
2008
2009
2010
9,568
Interpretation:
Agriculture Credit outstanding increased from Rs.9146 Crore as on March
2008 to Rs.9,568 Crore as on March 2009 and Agriculture Credit increased
from Rs.9568 Crore as on March 2009 to Rs.11,567 Crore as on March 2010 ,
registering an absolute YOY growth of Rs.1999 Crore (20.90%). Bank has
exceeded the National Goal (18.00%) of Agriculture to ANBC by achieving
18.68% as on Mar10.
March 2008
Amount
(Rs. crores)
6,571
March 2009
Amount
(Rs. crores)
7,306
March 2010
Amount
(Rs. crores)
8,340
agriculture
6,571
8,340
2008
2009
2010
7,306
Interpretation:
Direct finance to agriculture of the Bank grew by Rs. 6,571 crores as on
31.3.2008 to Rs. 7,306 crores as on 31.3.2009 and Rs. 7,306 crores as on
31.3.2009 to Rs. 8,340 as on 31.3.2010.
48
March 2008
Amount
(Rs. crores)
2,575
March 2009
Amount
(Rs. crores)
2,262
March 2010
Amount
(Rs. crores)
3,227
2,575
3,227
2008
2009
2010
2,262
Interpretation:
49
March 2008
Amount
(Rs. crores)
3,530
March 2009
Amount
(Rs. crores)
4,593
March 2010
Amount
(Rs. crores)
8,188
3,530
2008
2009
2010
8,118
4,593
Interpretation:
50
Credit to Micro and Small Enterprises (MSE) grew from Rs. 3,530 Crore as on March 2008
to Rs.4593 Crore as on March 2009 and grew from Rs.4593 Crore as on March 2009 to
Rs.8,118 Crore as on March 2010, registering an absolute YOY growth of Rs.3595 Crore
(78.27%). Share of Micro Enterprises to total Micro & Small Enterprises has exceeded the
National Goal (60%) by achieving 62.25% as on Mar10.
Priority
March 2008
Amount
(Rs. crores)
6,098
sector/Schemes
Other
March 2009
Amount
(Rs. crores)
6,275
March 2010
Amount
(Rs. crores)
4,524
4,524
6,098
2008
2009
2010
6,275
51
Interpretation:
Credit to other sector such as housing loan, education loan etc. grew from Rs. 6,098 Crore
as on March 2008 to Rs.6,275 Crore as on March 2009 but in 2010 credit to other sector
was decline from Rs. 6,275 Crore as on March 2009 to Rs. 4,524 Crore as on March 2010.
March 2008
Amount
(Rs. crores)
4,455
March 2009
Amount
(Rs. crores)
5,010
52
March 2010
Amount
(Rs. crores)
6,150
4,455
2008
2009
6,150
2010
5,010
Interpretation:
Credit to weaker section grew from Rs. 4,455 Crore as on March 2008 to Rs.
5,010 Crore as on March 2009 and credit grew from Rs. 5,010 Crore as on
March 2009 to Rs. 6,150 Crore as on March 2010. Credit to weaker section
from Allahabad bank increased year to year .Credit to weaker section was
10.77% of ANBC as against stipulated norms of 10%.
53
CHAPTER -5
5.1 Findings
Credit to priority sector increased as on 31 march 2008 to 31 march
2010. Bank has exceeded the National Goal (40.00%) by achieving
41.29% as on Mar 10.
Bank has exceeded the National Goal (18.00%) of Agriculture to ANBC
by achieving 18.68% as on Mar10
Share of Micro Enterprises to total Micro & Small Enterprises has
exceeded the National Goal (60%) by achieving 62.25% as on Mar10.
Credit to other section such as housing loan education loan has been
increased as on march 2009 but march 2009 to march 2010 credit to
other section has been decreased.
Credit to weaker section from Allahabad bank increased year to year
.Credit to weaker section was 10.77% of ANBC as against stipulated
norms of 10%.
54
5. 3 Conclusion
My research in the field of financing to priority sector from Allahabad bank and
Allahabad bank has been grew year to year. This has some interesting facts
which can be drawn from the above analysis.
55
5. 2 Suggestion:
priority sectors are big source of revenue for banks, so bank should
encourage also the unregistered units by providing more facilities like
less paper work.
Bank has to increase their credit limit and also decrease the installment
amount.
The best way to encourage lending to micro small industries is to
improve the ability of existing institution to construct profitable and
efficient lending programmes.
Building awareness among small business people about the financial
sources offering by bank. Especially in the case of housing loan and
education loan is must. So there is mutual benefits are possible
While granting the loans the bank does not adhere with the margin.
The process followed by the bank in sanctioning the loan is
unmanageable; hence it is suggested to make the process easier in
sanctioning the credit facilities to the priority sector.
56
Bibliography
1. E. Gup Benton & W . Kolari James,
Commercial Banking
3rd
,NewDelhi,
WEBSITES
www.allahabadbank.com
www.banknetindia.com
www.mybankersbank.com
http://www.rbi.org.in
57