Professional Documents
Culture Documents
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8. To suggest solution by studying the problems relating to the
bank.
AREA OF STUDY: -
METHODOLOGY: -
1. Primary data
2. Secondary data.
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BENEFITS OF THE STUDY: -
LIMITATIONS:
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CHAPTER – 2
MEANING:
DEFINITION:
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On account of the numerous activities performed by a
modern bank, the various definitions attempted so for have
thrown some light on characteristics of the bank.
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European banking. The Jews are said to have introduced Bills of
Exchange in Europe, very likely from the more advanced East of
that date, which were soon discovered to be the most convenient
method of transmitting money from one country to another.
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through statutes. Culminated in social control and nationalization
of banks which were considered very big.
1. Primary Functions
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2. Secondary Functions
PRIMARY FUNCTIONS:-
1. Receiving of deposits: -
Deposits constitute the main source of funds for commercial
banks. Commercial banks deposits from the public on various
accounts. The main types of accounts are: -
a. Current accounts
b. Savings bank accounts
c. Fixed deposit accounts
d. Recurring deposit accounts.
2. Lending of funds: -
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installment credit i.e., loans against movable assets like vehicles
refrigerators, TV sets and other home appliances.
e. Creation of money: -
Secondary Functions: -
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1. Agency services
2. Miscellaneous or general utility services.
Agency Services: -
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CHAPTER - 3
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ORGANISATION:
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During 1990-91 its authorized capital was raised to Rs. 1000
crores at present, the authorized capital of the bank is
100,00,000 shares of Rs. 10 each.
a. Receiving of deposits
b. Granting of loans and advances
c. Investment in securities
d. Collecting and paying of cheques for customer
e. Acting as the trustee, executors and Agent of the customer
etc.
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c. It serves as a bankers bank
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2. State bank of Hyderabad
3. State bank of Indore
4. State bank of Mysore
5. State bank of Patiala
6. State bank of Saurastra
7. State bank of Travancore
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The State Bank of India has made remarkable progress in
different direction. It has climbed new peaks and has set for itself
bolder and more challengers, goals and policies to be followed all
along the line.
In the recent years, the SBI has reached the peak if its glory
as a largest bank in India. A high point in bank’s performance
during the year was the launch of the India Millennium Deposit
(IMD) programme, which was a resounding success. With
overwhelming response from investors, the bank mobilized USD
5.5 billion (Rs. 25,711 crore). By boosting India’s foreign
exchange reserves, the programme helped to meet the challenge
of rising oil prices, provide strong support to the rupee. Another
milestone was reached with bank’s successful foray into
insurance. It is a joint venture with SBI holding 74% and balance
26% Cardiff S.A., the Joint venture partner. The bank will market
the products and provide active support in product development,
risk management and IT areas. SBI life launched its first product
“SANJEEVAN” on 15th June 2001.
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competitive housing loan market it has registered an annualized
growth rate of 46% i.e., a growth of Rs. 1,543 crore during the
year under review. In personal finance, it covers a broad
spectrum including Auto, computer, personal and education
loans. The bank has growing at a fast pace and the personal
financing portfolio registered an impressive growth of 30% during
2004-05.
FINANCIAL PERFORMANCE
PROFIT: -
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The bank posted a Net Profit of Rs. 1,604.25 crore for the
year 2004-05 as compared to Rs. 2051.55 crore in 2003-04. the
reduction was due to the IMD issue expenses and VRS related
expenses charged off during 2004-05 , as aforesaid, which
depressed the profit by Rs. 640.98 crore (net of tax). Further,
write back of excess provision for investment depreciation (net
of tax) contributed only to the extent of Rs. 84.75 crore to the
Net profit of 2004-05, as against Rs. 322.40 crore in 2003-04.
The net profit, after adjusting for the above factors as
applicable in both the years, would be Rs. 2,160.48 crores in
2004-05 as against Rs. 1729.15 crores in 2003-04, i.e., a growth
of 24.94%.
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During the year, the bank earned an income of Rs. 77.05
crores by way of dividends from associate banks / subsidiaries /
companies and joint venture in India and abroad.
LIABILITIES: -
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The bank’s aggregate liabilities (excluding capital and
reserves) rose by 21.2% from Rs. 2,49358 crores as at 31st march
2004 to Rs. 3,02,183 crores as at 31 st march 2005. the increase
in liabilities was mainly contributed by increase in deposits.
HIGHLIGHTS:
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Net profit 1,604.2 2,051.5 _21.8
END OF THE YEAR March March 2004 Percentage
2005
Paid up cap & Reserve 31,416 12,147 10.8
Deposits 242,828 196,821 23.4
Advances 1,13,590 98,102 15.8
No. of domestic branch 9,026 8,998 0.3
No. of Foreign branch 52 52 0
PROFIT AND LOSS A/C FOR THE YEAR ENDED 31 MARCH 2005
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Operating expenses 16 8298,82,45
Provision & contingencies 2362,53,05
TOTAL 2862,53,05
3.PROFIT
Net profit for the year 1604,24,90
Profit brought forward 33,55
TOTAL 1604,58,55
APPROPRIATIONS
Transfer to statutory 1193,72,19
reserves
Transfer to other reserves 120,53,64
Transfer to proposed 263,14,94
dividend
Transfer to tax on dividend 26,84,13
Balance carried over B/S 33,55
TOTAL 1604,58,45
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notice
Investments 08 122876,49,28
Advances 09 1125,90,27,08
Fixed assets 10 2593,30,18
Other assets 11 15874,95,96
TOTAL 315644,21,05
Contingent Liabilities 12 83668,98,25
Bills for collection 8080,32,19
CHAPTER - 4
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Now a day’s computer has become one of the major
components of information technology. Information technology
and the computer influences every aspects of human life it has a
tremendous application in almost all the field of human activities.
The state bank of India, Main branch Shimoga has also have
a link branches to provide a better customers services following
are the link branches.
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2. SBI Shankaraghatta Branch
3. SBI Punnayasthala Branch.
MEANING OF CREDIT:
CLASSIFICATION OF CREDIT:
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1 Agricultural purpose: -
i. Purchase f livestock
ii. Banding and other land improvements
iii. Repairs of wells and other irrigation services
iv. Repairs of wells and other irrigation services
v. laying of orchards etc,
C. long Term Credit:
a. Short Term
i. Repairs of production equipment, transport
equipment and furniture
ii. Current expenditure in non farm business
b. long term :
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i. Purchase, construction, addition and repair of
building for non –farm business
ii. Purchase of farm equipment, transport equipment
and furniture
iii. Other capital expenditure on non – farm business
3. Family expenditure: -
Short Term
i. Purchase of domestic utensils, clothing’s etc.
ii. Medical Education and other family expenses
Long term:
i. Purchase, construction and repair of residential houses
ii. Expenses relating to death and marriage and other
ceremonies and litigation expenses
4. Other purposes: -
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d. Term loans
e. Bills discounting
1. Requirements:
2. Application form:
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If the customer fails to fulfill the above required documents,
his application will be rejected by the bank before presenting to
higher authority.
3. Security:
4. Final Authority:
5. Opening of account:
6. Interest:
7. Recovery of loans:
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The bank ill recover the loan amount on the installment
basis. If the customer fails to repay the loan amount with in the
prescribed time period, the bank can sell the security pledged by
the customer to recover the loan amount
Cash Credit
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The popularity of cash credit increased due to the following to
reasons:
Year Amount
2003-2004 739321
2004-2005 970177
2005-2006 905227
OVER DRAFTS:
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After the expiry of the agreed period, the customer is expected to
settle the debit balance in his account.
Year Amount
2003-2004 33.610
2004-2005 50.175
2005-2006 70.231
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DEMAND LOANS
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transfer to the credit of his current account, if any some times,
the amounts are paid to the borrower in installment
1. Gold loan:
3. Government securities:
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pledged things of the customer for the recovery of the loan
amount after issuing a notice to the borrower.
Year Amount
2003-2004 119.9699
2004-2005 166.324
2005-2006 194.231
TERM LOANS
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the disbursement of the loan is made is one lump sum, the
re[payment of the loan is generally made in one lump sum.
Repayment of the loan in installments is also permitted.
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borrower, at quarterly or half yearly intervals. A banker prefers to
make an advance in the form of a term loan for to reasons: -
Purpose:
Eligibility:
Purpose:
Eligibility:
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Loan:
24 times net monthly income Max-Rs.8 Lakhs for new car and
Repayment:
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Loan: Maximum of 2.5 Lakhs
Year Amount
2003-2004 808.232
2004-2005 1068.243
2005-2006 1191.142
BILLS DISCOUNTING
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bill from the acceptor of the bill. In case the bill is dishonored by
the acceptor, the bank recovers the amount from the customer
who has discounted the bill. This type of accommodation is
generally, granted up to an agreed limits.
The interest for this financial accommodation is called the
discount, and is charged on the face value of the bill for the
unexpired period of the bill i.e., from the date on which the bill is
discounted to the date on which the bill matures.
Year Amount
2003-2004 808.232
2004-2005 1068.243
2005-2006 1191.142
CHAPTER 6
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The customers are selected on the basis of sex, occupation,
annual income and so on. 50 respondents are taken as 100 and
made percentage on the basis.
ANALYSIS OF SURVEY
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Out of 50 respondents, the last category respondents
include a various occupations. The response from employee and
business is good, where as the profession and others have given
considerable suggestion.
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negligible, the opinion of income group people 10,000- 50,000 is
considerable and effective respectively.
From the above table, it is clear that the bank accepts term
deposits more than other type of deposits. After, current account
occupies the major part and then the S/B account.
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5. Table showing General opinion of respondents
towards the rate of interest on deposits.
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6. The Table showing different types of loans borrowed
by the respondents.
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persons have taken vehicle loan and 1 person education loan, 3
respondents have taken loan against gold and 3 persons
mortgage loan. & 8 respondents have not taken any loan from
the bank.
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8. Table showing general opinion of the respondents
towards the loan procedure.
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9. The Table showing the opinion of the respondents
towards the service of the bank.
Opinion Number of Percentage
respondents
Excellent 7 14%
Good 19 38%
Satisfactory 20 40%
Not satisfactory 4 8%
50 100%
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10. Table showing the opinion of respondents regarding
new schemes or improvement of loans.
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CHAPTER- 7
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Only the educated and business knowledgeable persons
understand the procedure of sanctioning the loan. It creates
problems to a common man. Hence, it should be simplified.
3. Interest on loans:
4. Locker Facility
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CONCLUSION
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BIBLIOGRAPHY
1.Encyclopaedia-Britannica
4.Magazines-Indion today
-Bank
5.Web site-www.statebankofindia.com
www.sbi.co.in
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Questionnaire
1. Name:
2. Address:
40-60 [ ] 60&abow [ ]
Profession [ ] Student [ ]
Others [ ]
6. Annual Income:
Up to Rs. 10,000 [ ]
10,000 – 50,000 [ ]
50,000-1,00,000 [ ]
Above 1,00,000 [ ]
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7. Do you have any account with BANK
YES [ ] NO [ ]
Term Deposit [ ]
Attractive [ ] Satisfactory [ ]
Not-Satisfactory [ ]
YES [ ] NO [ ]
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Loan against gold [ ]
Difficult [ ]
Advertisement [ ] Friends [ ]
Relatives [ ] Others [ ]
YES [ ] NO [ ]
16. What is your opinion about the service provided by the bank:
Excellent [ ] Good [ ]
Date:
Place: Signature
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