Financial Assistance by The Cbs Bank Mba Finance Project Report

Financial Assistance by the CBS Bank, Gangavathi
CONTENTS
CHAPTER-1 Executive summary BABKING PROFILE CBS BANK PROFILE NEEDS OF THE STUDY OBJECTIES OF THE STUDY SCOP OF THE STUDY MATHODOLOGY FINDINGS CONCLUSION Page No 3-5
CHAPTER-2 INTRODUCTION OF THE STUDY PROFILE OF THE BANKING 7-8 9-11 13-18 PROFILE OF THE CBS BANK
CHAPTER-3 Literature review CHAPTER-4 ANALYSIS AND INTRERPRITION LONS AND ADVANCESS OFFERED BY
CBS BANK GUIDELANCE ANNUAL REPORT AS ON 2008-2009
20-47 48-55 56-66 68-70
CHAPTER-5 FINDINGS, SUGGESTION AND CONCLUSION
Bibliography
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BABASAB PATIL FINANCE PROJECT REPORT
CHAPTER:1
EXECUTIVE SUMMARY
BANKING PROFILE:
As per the Banking Regulation Act 1949 RBI given authority to Co-Operative Banks to do Banking Business were extended to Co-Operative Banks. It has been licensing of existing and new Banks Branches, sanctioning of credit limits to state Co-Operative Banks on behalf of primary Co-Operative Banks. The present Banking system in India has undergone a Program of tremendous Branch expansion Program which has helped sector Banks to mobiles savings substantially from the for hung areas of the country and out funds to the weaker sections of the society Banks have penetrated in to Rural, semi Urban and Backward Areas.
ORGANIZATION PROFILE:
The main Preference for the study is to have an exposure to the corporate world to understand how really business organizations operate. As the study is made in the Shri Channabasava Swamy Souhardha Pattana Sahakari Niyamita Co-operative bank which is a co-operative banking finance company there was a need to know about how they manage their loans & advance In Gangavathi presently CBS Bank is the number one co-operative bank. This is local bank. All people will know about the bank. I choose the topic about loans and advances because some people dont know what type of loans are given by the bank; what types of document they maintain .Finance is one of the powerful strength to every person so loans & advances are also one type of the strength or assistance to people who want that type of strength so the title Financial Assistance By The Bank is selected.
NEED FOR THE STUDY The Indian Banking industry comprises segments that provide comprehensive banking services to individuals, corporate and small business. Industry segments are Public Sector Banks, Private Sector Bank and Foreign Banks. In this Project the report is mainly focused on FINANCIAL ASSISTANCE BY THE CBS
BANK GANGVATHI.
Objectives of the study: To view the services offered by the CBS Bank. To get practical knowledge about loans & advances. To know about the collateral Ssecurities asked for sanctioning loans.
SCOPE FOR THE STUDY:This project acts as a reference guide or as a source of information. It gives the idea about the financial assistant of the CBS Bank . The main scope of the study was to put into practical the theoretical aspect of the study into real life work experience. The study deals with analysis and interpretation of the data collected through the sources of primary and secondary data for a period one year annual report i.e2008-2009 Graphs, diagrams and tabulation methods are used to analyze and interpret the data collected. It will help to understand the companys liquidity position.
METHODOLOGY Sources of Data :

The data furnished in the report has been collected from two sources.
Primary Data: It is collected through personal interview with manager, accountant & assistant
accountant.
Secondary Data: It is collected through various annual reports, pamphlets of CooperativeBank Training Academy, Banking theory book
Limitations of the study:

Time allotted sixty days were a short period to study in detail regarding loans and advances in CBS Bank. The Study was based on available information and documents
Financial Assistance by the CBS Bank, Gangavathi The study was carried out in the light of the limited knowledge. The Study is limited to only Gangavathi
Findings
As the city is based on agriculture, so the bank is based on agricultural loan mainly. Self operated minor deposits are not allowed. Interest rates are high compared to nationalized banks. Interest from mortgage loan is very high compared to other loans given by bank
CONCLUSTION.
After the study, we can come to a conclusion that, C.B.S Bank has to improve in all the aspects of its banking operations, the C.B.S Bank can still strengthen Bank should increase the customers account, deposits and there should be more transaction.Bank should extend their loan facility to industries also.
Suggestion
Banks should cullet the feasible securities As nationalized banks are giving loan at low interest rates, many of them are benefited with it. So in order to have more transaction they should reduce the interest rates while providing loan. Since liabilities are more than bank balance, bank should increase the customers account, deposits and there should be more transaction.
CHAPTER
BANKING PROFILE:
As the Study was conducted in the Co-operative CBS Bank, it is necessary to have some information about the Co-Operative Banking. As per the Banking Regulation Act 1949 RBI given authority to Co-Operative Banks to do Banking Business were extended to Co-Operative Banks. It has been licensing of existing and new Banks Branches, sanctioning of credit limits to state Co-Operative Banks on behalf of primary Co-Operative Banks. The present Banking system in India has undergone a Program of tremendous Branch expansion Program which has helped sector Banks to mobiles savings substantially from the for hung areas of the country and out funds to the weaker sections of the society Banks have penetrated in to Rural, semi Urban and Backward Areas. The present system of Banking is mass Banking than Class Banking. The larger number of branches operating in rural and semi rural areas has greatly increased the memorization of the economy, have raised the share of Finance Institutions in the total financial transactions in these areas and have brought a good part of the un-organized sector of the money market under the control of the RBI and Government.
What are Co-Operative Banks?

The amending Act 23 of l965 called the Banking laws Applications to Co-Operative Banks as. All the Co-Operative Banks are under state or Apex Co-Operative Banks. All the Co-Operative Banks main principle in States and Districts, Primary object
which is the Financing of Co-Operative Banks in their respective States and Districts.
Financial Assistance by the CBS Bank, Gangavathi All the Primary Non-Agricultural Credit Societies including Urban Co-Operative
Banks as have Banks as their principle Business and paid up Capital and Reserves of a nominal value of Rs.100000/- or more. It is also known in the form as financial institutions. A Co-Operative banking which is a Company and which has principle Business
the receiving of Deposits under any Schemes and giving loans and other Banking facilities to customers.
Definition of Co-Operative Bank:

A Co-Operative is an autonomous association of persons united voluntary to meet common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
Principles:
The Co-operative principles or guidelines by which co-operatives put their values into practice. Voluntary and Open Membership. Democratic Member Control. Member Economic Participation. Autonomy and Independence. Education, Training and Information. Co-Operation among Co-Operatives. Concerned for Community.
Values:
Co-Operative is based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, Co-Operative Members believe in the ethical values of honesty, openness, social responsibility and caring for others.
Objectives of Co-Operative Banks:

To ensure increased flow of assistance to the neglected sectors. To speed up the growth of new and progressive entrepreneurs.
Financial Assistance by the CBS Bank, Gangavathi areas. To extend banking services especially to urban, semi-urban and rural
CHANNABASAVA SWAMY BANK PROFILE:

As the Gangavathi being the part of Koppal District is considered as one of the most important in field of Agriculture, Trade and Commerce and in Banking Sectors is growing at Top level. As the Gangavathi is well known as a Rice Bowl of Karnataka and also commercially it is known as Paddy City and it is famous for the gracious presence of Lord Channabasava Swami. Entire Gangavathi Taluka is very potential in Agriculture Market and it is surrounded by more than 140 Rice Mills 40% of the Rice is being exported to Foreign Countries like Singapore, Hong Kong and many other countries. The CBS Bank is a residuary Co-Operative Bank. Which was established on 30th June l995.It has Two Branches One at Gangavathi and another at Kartagi. Shri Siddapur Manjunath is the main promoter of the bank. He started bank with the Capital of Rs.12Lacs. Earning is Rs.96,000.00, Present Capital employed is Rs.56,56,635.00 Earning is Rs.61,10,000.00 In Gangavathi CBS Bank is playing a major role in banking sectors, as per daily transaction of CBS Bank is about 2 crores. It has been facing competition from Nationalized as well as other Co-operative banks. As Gangavathi is basically based on only agriculture i.e., paddy. So, The Bank meets some low Profits in past Two Years. Because of famine and also faced some problems in collecting loans because of single crop.
Financial Assistance by the CBS Bank, Gangavathi The Bank is not a community based as Co-Operative Banks are community based. As being the potential Market in Gangavathi Shri Siddapur Manjunath (Chairman) planned to do Co-Operative Bank with the committee which will be helpful for local trader and investors. The main aim of the Bank is to give utmost service to the smaller region people as the Gangavathi is surrounded by many villages and to give service for illiterate that by giving awareness of banks and for the purpose of the social service
Distinctions:
Over 14 year in service. Pioneered small savings. Wide transactions. Door step customer service. Pioneered designed banker. Free value added service. Technology driven environment. Involvement in social categories.
Vision:
in 2010. Extending its branches for better customer service at different Maintain transparency in dealing with customers & invariable Train its employees to render professional & pleasing services. Practice judicious management of risks & after service to places like Karatagi, Kustagi, Koppal and Hospet. fulfill all commitments. To reach Rs.50 crores in deposits. Bank to convert from co-operative bank to schedule bank with
satisfy customer needs and wants.
Special Features of Bank:

The Bank is paying two thousand to the Members for their funeral Function if it occurs.
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Financial Assistance by the CBS Bank, Gangavathi members. level. Cash prize is given for the highest Scorer in Under- Graduation. The Bank used to sponsor scholarship to a poor student up to degree Twenty-five thousand to one lakh is paid for accidental death of
OBJECTIVES OF CHANNABASAVA SWAMY BANK Objectives:

The bank ensures safety & profitability of assets by due diligence & by adopting appropriate information technology. The banks main aim is to give opportunity for career advancement of the employees. The bank aims to grow in size & geographical spread by introducing variety of innovative services.
ORGANIZATION STRUCTURE
BOD Chairman Vice Chairman General Manager
Branch Manager Maintenance
Manager for Loan Accountant
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Financial Assistance by the CBS Bank, Gangavathi Accountant Assistant Account Assistant Accountant
Staff
CHAPTER:3
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THEORETICAL BACKGROUND NEED FOR THE STUDY

The Indian Banking industry comprises segments that provide comprehensive banking services to individuals, corporate and small business. Industry segments are Public Sector Banks, Private Sector Bank and Foreign Banks. In this Project the report is mainly focused on FINANCIAL ASSISTANCE BY THE CBS BANK GANGVATHI.
Objectives of the study:

To view the services offered by the CBS Bank. To get practical knowledge about loans & advances. To know about the collateral Ssecurities asked for sanctioning loans.
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SCOPE FOR THE STUDY:This project acts as a reference guide or as a source of information. It gives the idea about the financial assistant of the CBS Bank . The main scope of the study was to put into practical the theoretical aspect of the study into real life work experience. The study deals with analysis and interpretation of the data collected through the sources of primary and secondary data for a period one year annual report i.e2008-2009 Graphs, diagrams and tabulation methods are used to analyze and interpret the data collected. It will help to understand the companys liquidity position.
METHODOLOGY Sources of Data :

The data furnished in the report has been collected from two sources.
Primary Data: It is collected through personal interview with manager, accountant &
assistant accountant.
Secondary Data: It is collected through various annual reports, pamphlets of CooperativeBank Training Academy, Banking theory book
Introduction:
Banking occupies one of the most important positions in the modern economic world. It is necessary for trade and industry. Hence, it is one of the great agencies of commerce. One of the primary functions of a bank is to grant loans. Whatever money the bank receives by way of deposit, it lends a major part of it to its customers by way of loans, advances, cash credit and over draft. Interest received on such loans and advances is the major source of its income. The bank makes a contribution to the economic development of the cover by growing loans to industrial and agricultural source.
Definition of Banking:
According to Regulation Act 1949
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Financial Assistance by the CBS Bank, Gangavathi Accepting for the purpose of lending and investment of deposits of money from public. Repayable on demand or otherwise and withdraw able by cheque, draft, order or otherwise.
Types of banks:
Commercial Banks Industrial Banks Mixed Banks Agricultural Banks Exchange Banks Savings Bank Indigenous Banks Central Bank Co-Operative Banks
Meaning of Loans: (In General)

Giving money to the various people by taking with their various securities, services for various purposes.
Types of Loans and Advances:

Loans and advances are of different types. There can mainly be classified on the following bases. I. a. b. c. On the basis of Object or Purpose: For which purpose a loan is being taken it may be for the following purposes. Commercial Loans: This loan is taken to meet show room requirements of capital. Eg: Working capital. Consumer Loan: This loan is taken to finance house hold goods like: Fridge, T.V., washing mashine etc. Agricultural Loan:
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Financial Assistance by the CBS Bank, Gangavathi Such loan is taken by the farmers to meet their short term requirements
like buying Seeds, Fertilizers, Insecticides, Agriculture Development Loans etc. II. a. b. c. On the basis of Time: Short term Loan: Such loan is taken for a period of less than a year. For Eg: to meet Medium term Loan: Such loan is taken for a period ranging from 1 year to 3 years. For Long term Loan: Such loan is taken to meet long term requirements from 3 years
working capital requirements. Eg: to purchase equipments for professionals or furniture etc., to 20 years or more. For eg: Loans however III. a. to purchase land, building, plant and whichever etc.,
banks provide long term loans to a very limited extent only.
On the basis of Security: Secured Loan: Such loan is granted on the security of tangible asset, Sec 5(a) of the
Banking Regulation Act 1949, defines a Secured loan or advance as loan or advance made on the basis security of assets, the market value of which is not at any time less than the amount of such loan or advance. b. Unsecured Loan: Such a loan is granted without any security, According to Sec 5(a) of the above act an unsecured loan or advance means a loan or advance not so secured. IV. A. On the basis of Form: Loan: This is the old age and popular form of lending by the banks. In case of loans, As such interest is payable on the
financial assistance is given for a specific purpose and for fixed period. The consumer can withdraw the entire amount of loan in a single installment. return the loan in more than one installment also. Merits of growing loans: a. loan. Simplicity: The method is very simple interest is payable on the entire amount of the entire amount. Ordinary the loan is repayable in one installment. However a consumer may
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Financial Assistance by the CBS Bank, Gangavathi b. c. a. b. c. B. Better recovery of Interest and Loan: The customer knows in advance the time of return Profitability: From the point of view of the bank, the method is economical. Inflexibility: Borrower has to be made a fresh request for the loan every time he requires Over Borrowing: a customer known in advance the time of return of the loan. More Formalities: As compared to cash credit and overdraft needs loan documentation is Cash credit: under this system a limit called the credit limit is specified by the bank. A assets or guarantee. The borrower can withdraw money, any number of times up to that limit they can also deposit any amount of surplus funds with in from time to time?. Merits: a) b) c) Demerits: a) b) c) C. Over borrowing. Division of Funds. Non utilization of Funds. Flexibility. Economical. Less Formalities.
of the loans. Demerits: the loan.
more complicated. borrower is entitled to borrow up to that limit. It is granted against the security of tangible
Overdraft: One of the main advantages of a current account is that its holder can avail of
the facility of overdraft. An overdraft facility is granted to a customer on a written request sometimes it may be implied where a customer overdraws his account and the banks honors his charges. Features: This is a running account and the customer may deposit and withdraw any number of times. The bank provides cheque book facility. It is permitted only in a current account. Usual account opening formalities for a current account has to be gone through.
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Financial Assistance by the CBS Bank, Gangavathi D. Bills purchased: Bill clear or documentary are sometimes purchased from approved customers in whose favor regular limits are sanctioned. The word Bills purchased indicates that the bank becomes the purchaser / owner of such bills. But guarantee the bank holds the bills only as security for the advance.
E.
Bills discoursed: It is done only for approved parties. This is done mainly in respect of since bills
maturing within 90 days or so after the due of the bill or after sight.
Principle of sound lending:

1. 2. 3. 4. 5. 6. 7. 8. 9. Safety Liquidity Profitability Diversification Object of loan Security Margin money National interest Character of the borrower
Lending process:
Whatever may be the type of advance, the process of appraisal of a loan proposal is very important, lending money involves the following functions. 1. 2. 3. 4. 5. 6. Understanding the market. Prospecting for the right customer. Credit investigation. Sourcing for the customer by obtaining the application. Obtaining and collecting the required information for appraisal. Doing the appraisal process including verification of place of business securities.
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Financial Assistance by the CBS Bank, Gangavathi 7. 8. 9. 10. 11. 12. Recommendation and sanction. Obtaining securities, documentation and creation of charges. Disbursement. Enquiring the end use. Follow up monitoring and renewal. Recovery of advance.
Modes of charging:
I. II. III. Lien: A lien is the right of person or a bank to retain the goods or securities in his possession until the debt due to him is settled. Pledge: The bailment of goods as security for the payment of a debt or performance of a promise. Mortgage: It is mode of charge created on immovable properties like land and buildings. It is the transfer of legal or equitable interest in property as security for the debt. IV. Hypothecation: It is a charge on a property of which neither ownership for possession is transferred to the creator. In simple word it is a pledge without transferring the possession of goods.
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CHAPTER :4
FINANCIAL ASSISTANCE BY THE CHANNABASAVA SWAMY BANK

The main purpose of bank lending is to helps economic development of the country. All types of business activity including trade, industry & agriculture have to depend upon bank finance in one form or the other .banks help in canalizing the savings of the people into productive uses. Thus from banks help both depositors & borrowers. It helps in creation of employment potential & thus helps raising the standard of living of the people.
Following are the various loans & advances offered by the bank. BABASAB PATIL FINANCE PROJECT REPORT
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Financial Assistance by the CBS Bank, Gangavathi 1. Gold loan 2. Loan on fixed deposit 3. Trade loan 4. Loan on pigmy 5. Loan on recurring deposit 6. Mortgage loan 7. Overdraft account 8. Cash or limit account 9. Consumption loan 10. Key loan 11. Personal loan 12. Construction loan 13. Hypothecation loan 14. Warehouse receipt loan 15. Surety loan 16. Loan on securities 17. Hosing loan 18. Vehicle loan 19. Loan on poultry form 20. Professional loan 21. Salary earner loan
1.
Loans against Fixed Deposit

Loans against deposits can be sanctioned either to the depositors or third persons.
Eligible Borrowers:
Types of Deposit
Eligible Borrower
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Financial Assistance by the CBS Bank, Gangavathi A. Deposit in single name The depositor himself.
B. Deposit in joint name
All depositor jointly or one of the depositors with
consent/authority from all. C. Guardian operated minors deposit [upon a declaration that loan is required for the benefit of the minor]
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Financial Assistance by The CBS Bank, gangavathi
Third Parties: Persons not connected to deposit can also avail loan against authorization from depositor(s). Such third party loans carry a different rate of interest. Loan given to a proprietor against the deposits in his firms name or vice versa should not be treated as third party loans. Loans given to partnership firm against the deposits in the name of a partner should not be treated as a third party loan. However, if a partner avails loan against deposits in the name of the firm it should be treated as a third party loan. Ineligible Deposits: Self operated minors deposit: Loans can not be sanctioned against self operated minors term deposits, neither to the minor nor to his guardian. Third party loan against guardian operated minor deposit account: is not operated. Term deposits under capital gains scheme[issued under section 54E of Income tax act 1961] can not be taken as security. Other bank term deposits: banks do not sanction loans against term deposits of other banks, as the latter will not register the assignment offering its right of general lien on such deposits. Deposits representing earnest money for a contract: It should not be taken as the deposit is already charged to the concerned department. Margin: The RBI has withdrawn the minimum margin requirement of 15% on advances against term deposits. Primary Urban Co-Operative Banks are free to determine the rate of margin to be maintained on advances granted by them against term deposits. Interest rate:12 Banks at their discretion may not charge excess rate of interest of 2% in case of advances up to Rs.300000 granted to a member/retired member of the banks staff or a spouse of a deceased member/deceased retired member of the banks staff against the term deposit.
SVMVVSANGAS INSTUTION OF MANAGEMENT STUDIES,ILKAL
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Financial Assistance by The CBS Bank, gangavathi RBI has stipulated that all advances against term deposit should carry interest not exceeding Prime Lending Rate [PLR] but where the rate of interest given on deposits is more than the PLR banks are free to charge suitable rate of interest even exceeding PLR. Where deposits are renewed: During the tendency of the loan, it is not necessary to get discharge on the renewed deposit. Documents to be obtained: A. Original deposit receipt duly discharged by the depositor (s) on revenue stamp is to be obtained. Discharge must be undated as dated discharge may tantamount to payment before maturity. B. A document containing the following convenient should also be obtained. o Application for the loan by the borrower. o Undertaking to deliver the security. o Authority to bank to exercise general lien & right of setoff. o Authority to renew deposit on maturity. o A letter of continuity (if the loan is sanctioned as a overdraft or cash credit).
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Comparison of interest rate(below one year only ING BANK SBI BANK SBM BANK SBH BANK AXIX BANK CBS BANK 9.5% 7.75% 7.25% 7.5% 8% 12% Comparison of interest rates
ANDRA BANK 7.5%
Interpretation: The fixed deposit CBS bank interest rate is more then the nationalized bank in Gangavathi.
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2)
Advances Against National Savings Certificate:

Banks can sanction loans against NSC VIII issues. NSCs are government securities
being sold through post offices. It is available in denominations of Rs.100, Rs.500, and Rs.1000 & Rs.10000. NSC VIII issue was introduced in 1989. They mature for payment after 6 years with interest compounded at half yearly with interest compounded at half yearly rests. Certificates issued before 31st December 1988 carry interest @ 12% P.A & certificates issued from 1.1.1999 carry interest @ 11.5% P.A & those issued from 15.1.2000 carry interest @ 11% P.A. NSC in the name of a minor loan can be given to a guardian where he declares that the loan is meant for the benefit of the minor. As per NSC issue rules can be transferred to banks as security. This transfer is affected by submitting to post office the duly filled letter of pledge in prescribed format under the signature of the NSC holder & the bank. The post office charges Rs.5/- per certificate for VIII issue and makes a noting of the transfer on the certificate under its seal. A bank official should get the lien noted personally or through authorized officials and no third party should be engaged for this purpose. Margin and maximum loan: RBI has now made banks free to stipulate margin as per their commercial judgment. Loan can be sanctioned against principal value plus accrued interest. Rate of interest: Commercial rate of interest at Banks discretion. For staff: the loan will bear interest at a rate which is minimum 1% higher than the interest rate payable on the NSC (RBI Guideline). Documentation: Application form for loan Security delivery letter NSC in original
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Financial Assistance by The CBS Bank, gangavathi Form NSC41 duly signed by NSC holder & bank for getting the NSC pledged in favour of bank. Demand promissory note. Repayment letter. There is no need to get the NSC discharged ( by its holder by signing on its back The transferee bank is entitled for the interest apart from the principal. NSC does not get cancelled when pledged. Nominee does not have a prior right over the pledge. In case of a NSC in the name of a minor, the guardian can borrow on behalf of After the closure of the loan the bank should write to the post office in standard
with or without revenue stamp)
minor for the letters benefit. format for transferring the NTSCs bank in the name of the depositor.
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3)

Loans against Gold Ornaments:

Customers who own gold ornaments. Loans should be sanctioned against gold ornaments & not against gold biscuits purring of gold should be minimum 18 carats. A pawn broker holding jewels as pledge is ordinarily not allowed to repledge them to bank for availing loan.
Eligibility:
Loan amount: Quantum & rate as decided by the bank. The advance amount if found out on the basis of weight, fineness of gold & as per the rate prescribed by the bank from time to time. Appraisal: It has to be done by an approved appraiser appointed by the bank. The commission paid to the appraiser is to be recovered from the borrower Repayment period: As per the rules fixed by the Board. Generally between 12 to 36 months. Procedure: Application in the prescribed format should be obtained. Jewel loan cards should be obtained in triplicate. I copy to be put inside the bag along with the ornaments pledged II copy to be pinned to the bag outside the III copy to be given to the borrower. DP Note. The jewels pledged should be kept in a bag duly scaled & in banks safe custody. INTERST RATE:15%
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Auction of jewels: Bank should send demand notices by registered post with AD giving 15 days notice for payment of dues. It should publish the notice of sale in the local newspapers preferably in vernacular language & display notice in the banks branch office notice board. Members of the staff of the bank can not participate in the auction sale. Auction can be made through a licensed Auctioneer. Highest bidder to deposit immediately 25% of the bid. The minimum bid should be fixed @ 80% of the current market value. Ones the bank conforms the bid bidder should deposite the balance with in three days of demand.
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Comparison of interest rates of gold(below one year only)

SBI BANK SBM BANK SBH BANK AXIS BANK ING BANK CBS BANK 8% 8% 3.5% 2.95% 16% 15%
ANDRA BANK 12%
Interpretation: The interest of gold loan of CBS bank is less than ING bank and more than other compared to other banks
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4)
Vehicle Loans:
Purpose: 1. For purchase of vehicles for self use (by individuals) 2. Exclusively for the use of Educational Institutions. 3. For transport operators.
Eligibility: For all individuals. Repayment period: 36 to 48 months. Rate of Interest: 14%. Maximum limit: 75% of cost of the vehicle subject to a maximum of Rs.l5 Lakhs for individuals. 75% of the cost of vehicle subject to a maximum of Rs.25 Lakhs for educational institutions. 75% of the costs of vehicle subject to a maximum of Rs.50 lakhs for transport operators. Security: Primary security will be hypothecation of vehicle purchased out of the loan. The vehicle should be registered in the joints names of the borrowers and the Bank. Additional collateral security as prescribed by the management. All loans above Rs.One Lakh should be given with collateral security only. Regular member, associate members, nominal member may act as securities. Documents to be obtained: 1. Loan application form duly signed by all the borrowers. 2. Last three years income Tax assessment. 3. Assets and liability statement for calculating repaying capacity. 4. In case of salaried borrower, letter from the employer about the salary with details of deductions made. 5. Hypothecation Agreement. 6. Registration of charge with the Road Transport Authority. 7. Insurance of the vehicle in the joint names of the borrower and Bank. 8. Mortgage formalities in respect of collateral security.
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Financial Assistance by The CBS Bank, gangavathi 9. Copy of the R.C. Book, Duplicate Key and the Insurance policy should be deposited by the borrower. 10.Copy of permanent Driving license. Disbursement of the loan: The borrower should deposit the margin money with the Bank. The Cost of the vehicle will be paid directly to the dealer of the vehicle by means of Bankers cheque or DemandDraft
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.Comparison of interest rate of vehicle loan

SBI BANK SBM BANK SBH BANK AXIS BANK CBS BANK 8% 9.5% 9.5% 15.5% 14%
ANDRA BANK 8%-14.5% Comparison of interest rates of vehicle loan of different banks
Interpretation: the interest rate of CBS bank is less compared to andhra and axis bank and it is more than other banks.
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5)
Surety Loans:
Eligible purposes: Personnel purposes like inland and foreign tours, repayment of debts, medical expenses, Educational expenses, marriage, thread ceremonies, for purchase of sites/houses, repairs, payment of Rent advance etc.,. Rate of Interest: l6% Maximum amount of Loan: As prescribed by the Board from time to time. The Maximum amount should relate to the repaying capacity of the borrower assessed by the Bank Documents to be obtained: a. Application form b. Demand Promissory note. c. Letter of guarantee from two approved sureties. d. Letter from the employer (in case of salaried borers) Agreeing to deduct the loan installment and remit the same directly to the Bank. e. Letter of authority by the borrower addressed to the employer asking him to deduct the loan installment from his salary. f. Salary slip indicating details of salary and deductions made thereon. g. Information regarding assets and liability of the borrower or last three years income Tax assessment. h. If the take home salary is not sufficient from the slips, Bank should ascertain from the borrower, additional sources of income for the family. i. If there are more earning members in the family, then the guarantee of other earning members should be obtained, if their earnings are also included for considering the repaying capacity of the borrower.
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6)
Housing Loan or Construction Loan:
HOME LOAN INDUSTRY:

The demand - supply gap in housing in colossal (estimated at 21.23 million in urban areas and 13.66 million in rural area). Yet home financing continues to have a limited spread in India. Organized home-loans account for only 14% of total housing investment and add up to about 20% of home purchases. Traditionally the mindset of Indians is debt-averse. Home loan companies could do little to change this attitude as they have a narrow base and beseeched with their own set of problems. Presently many companies in both private and public sectors offer home finance. The prominent players amongst are only few. HDFC in the private sector and LIC Housing Finance, Can Fin Homes in the public sector of the leading names in the industry. Many commercial banks like Corporation Bank, Bank Of Baroda and foreign banks like Citibank, HSBC, ANZ Grindlays are all getting very active in this business. For public sector companies like LIC, GIC, SBI and the nationalized banks, home finance was a logical extension of their existing businesses. They have massive network of branch office networks, a captive base of clientele, staff experienced in real estate matters and importantly, access to cheap sources of funds. For them therefore, the setting up of housing finance subsidiaries to service captive-market shares was a logical development. Absence of such entry-level advantage clearly affected many other players who could not make much headway in business, which is largely retail in nature. The true glory for making home-finance a household name however, goes to the Housing Development Corporation Ltd.(HDFC), which through a mix of good customer service and energetic sales pitch captured a sizeable market share in a sunrise industry. The creation of the National Housing Bank (NHB) is a true milestone in the industry's growthpath. NHB initiated operations in 1990s as an apex financing institution for granting loans to home-finance companies. It streamlined the operating rules, business procedures, interest rates
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Financial Assistance by The CBS Bank, gangavathi and created a favorable climate for other home-finance companies to take a serious look at this business. It is now mandatory for all home finance companies to follow the prudential norms laid down by NHB. This has brought discipline into the market and
helped even the small players to access concessional finance from NHB to remain competitive. It is the lack of low cost and stable long term sources of funds that has been the crux of the problem. Though there are about 383 Housing Finance Companies today, the disbursement by the leading 26 HFC's eligible for refinance from National Housing Bank constitute almost 95% of loans. And of these, two- LIC Housing and HDFC - virtually command the retail market with their assets. However, it is here that banks might have an edge. Even before the cut in Bank Rate, a bank's average weighted cost of borrowing was a low 10-1 1% allowing them to lend at 1314% and afforded them a comfortable spread. Currently, a bank's cost of borrowing has dipped even further to 8-8.5%. Sensing the opportunity, most of the banks are now setting up separate home-finance divisions to leverage their personal banking relationships with a captive database of account holders. The year 1996-97 witnessed poor growth of about 5% following the slump in property prices. Thereafter, in 1997-98 the market rebounded with a 23.5% growth with disbursals totaling Rs. 5,700 crore. The total flow of funds sanctioned to the housing sector in 1999-2000 was Rs. 21623.51 crore for 32.15 lakh housing units in the country under various housing finance schemes. This represented an increase of 27.34 % over the years. In the current year (up to September 2000) a total of Rs. 11791.27 crore has been sanctioned for 19.63 lakh-housing units. In terms of disbursements a total of Rs. 19475.88 crore was disbursed for 28.55 % over previous year. In the current year (up to September 2000) a total of Rs. 8482.97 crore have been disbursed for 6.93 lakh housing units. The National Housing Bank (NHB) was established in July, 1988, under the National Housing Bank Act, 1987, as an apex bank , on the lines of IDBI and as a wholly owned subsidiary of the RBI. It is the principal agency to promote housing finance institutions at the regional and local levels, and to provide financial and other support to such institutions SVMVVSANGAS INSTUTION OF MANAGEMENT STUDIES,ILKAL 36
Financial Assistance by The CBS Bank, gangavathi connected with housing and human settlements. The major objectives of NHB are to promote, establish, support or aid in the promotion, establishment and support of housing finance institutions and to make loans and advances or render any form of financial assistance whatsoever to housing finance institutions and scheduled bank or to any authority established under the Central Act and engaged in slum clearance and to frame guidelines for housing finance institutions to follow for availing of the refinance from the NHB and for registration as the eligible housing finance institution. The growth rate of the economy might go up to levels up to 6%, if the revival is kept up. Share markets are not entirely looking up, though they are stabilizing at levels, which can be termed as reasonable. Industrial growth rate, which was wallowing at a low of 1.5%, is now at around 5%. In fact, industrial credit given out by banks which in normal times would be about 4-5 times of bank credit given to housing, had in the last few years reduced to levels below advances to housing loans. But the happy feature is that industrial growth is picking up. Even, the steel sector, which was hopelessly down, is now having hopes of revival. It is only housing, amidst all these that seems to have kept up fairly stable front. Yes, the late 90s saw even housing go through a bad phase. But, then with that phase crossed, there has been a steady revival and stabilization of the market at levels, which can be termed as reasonable from the point of view of both the customers and those on the supply side. Housing is a basic need and like any basic human need will be constantly in demand. The potential for housing in this country is huge by NHB estimates. And the requirements by NI IB estimates are around 20 million houses. There are other estimates, which suggest that it is at a much higher level. Even going by the conservative estimate taken by the NHB, the requirements in the area of housing are massive. This really means that a lot of investments cab is there in the coming years and there is room for multiple players. The customer who is purchasing a house today has not only the options of competitively lowest rates of interest, but also choice of different types of loans starting from the house-purchase or house-building loans to house-improvement loans, home equity loans [loans on mortgage of property], home extension loans, NRI loans etc. It has never been better than this ever before.
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Financial Assistance by The CBS Bank, gangavathi As far as availability of finance to the retail customers is concerned, there has been a tremendous improvement in the possibility over the last few years. There are over 32 NHB recognized Housing Finance Companies which dot the map of this country with their presence all-over. The nationalized banks have in addition made housing a thrust area and added to the reach for advancing loans to individuals. The LICHFL, which organization I happen to represent, itself has over 200 centers in this country, which are covered by their physical presence. Leading Housing Finance organizations like the cbs bank also have a widespread network all over the city giving out loans to customers for housing. The banking major, SB J covers over 500 centers through their branches where personal banking division functions. The other banks too are not far behind in their reach out to the house purchasing public. In pursuance of its objectives, as the principal agency to promote a sound, healthy, viable and cost effective housing finance institutions/companies and to provide financial and other support to them, the NHB has issued operating guidelines for the HFC's in India. They must conform to these guidelines to the eligible for financial/re finance support from the NHB. Presently, it provides to eligible HFC's refinance facilities in respect of housing loans for acquisition/construction of new housing units. The important guidelines are briefly summarized in this section. Home Purchase Loans: There are the basic home loans for the purchase of a new home, * A loan for ready built house / flat Home Improvement Loans: These loans are given for implementing repair works and renovations in a home that has already been purchased by you. Home Construction Loans: These loans are available for the construction of a new home. Home Extension Loans: Are given for expanding or extending an existing home. For example addition of an extra room, etc. Home transfer Loans: Are available for those who have financed the present home with a Home Loan and wish to purchase and move to another home for which some extra funds are
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Financial Assistance by The CBS Bank, gangavathi required. Through a Home Conversion Loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need for pre-payment of the previous loan. and Purchase Loans: These loans are available for purchase of land for both home construction or investment purposes. Balance Transfer: Balance Transfer loans help you to pay off an existing home loan and avail the option of a loan with a lower rate of interest. Refinance Loans: These loans help you pay off-the debt you have incurred from private sources such as relatives and friends, for the purchase of your present home. Loans To NRls: Are tailored for the requirements of NRIs wishing to build or buy a home in India . Purpose: a. Repairs, alterations and additions to existing houses. b. Purchase of site & construction. c. Purchase of flat. Eligibility criteria: a. Individuals or Co-Operative Housing Societies, Housing Boards, Local Bodies etc., undertaking Housing Projects. b. Individuals, Members of co-operative Housing Societies belonging to SC & ST and Low and Middle income groups. Terms and Conditions: R.B.I. as under has prescribed maximum amount of housing loan. Which can be granted by urban Co-operative Banks.
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Financial Assistance by The CBS Bank, gangavathi The maximum amount of housing loan which can be granted by urban co-operative Banks having deposits up to Rs.50 crores will be Rs.5 lakhs and for Banks with deposits above Rs.50 Crores will be Rs.l0 lakhs. Income criteria for determining the quantum of Housing Loan to an individual borrower belonging to economically weaker section, low middle and higher income group has been discontinued the Banks are free to identify the eligible borrowers and housing loans depending upon their commercial judgment, deposit resources, repaying capacity of the borrower etc.,. Maximum amount of loan for repairs, additions and alterations per individuals borrower is Rupees 75,000. The quantum of housing advances is now related to deposit resources of Bank irrespective of the fact whether it is scheduled bank or not. The Banks can utilized up to 15% of the deposit resources to provide housing loans and other block capital loans. Security: The loan should be secured by either by mortgage of property or by government guarantee or by both. Rate of interest: 14% Documentation: Collateral securities should be given along with some Documents. Tax paid receipts. Sale DD. Khata extract for 15 years. Legal opinion from the legal advisor Mutation order. Encumbrance certificate for 15 years. Approved NA order along with approved layout. Map.Margin: up to 75% of the amount.
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Comparison of interest rates of home loan.

ING BANK SBI BANK SBM BANK SBH BANK AXIS BANK ANDRA BANK CBS BANK 9% 8% 8% 8% 9% 8.5% 14
Interpretation: the interest rate of home loan of CBS Bank is more compared to other banks.
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7)
Cash credit Limit:

Purpose: This facility is sanctioned to meet their working capital requirements & business improvement purpose. Eligibility: Generally cash credit limit shall be granted to traders against hypothecation/pledge of stock as approved by the bank to members, associate members. They must be engaged in bonafied trade, industry or other business activity. Period: Cash credit limits are generally sanctioned for a period of one year at the first instance. Depending upon the operations & deed, the limit is reviewed at the end of the first year. Cash credit accounts are running accounts like current accounts. Rate of interest: 15% Margin: up to rupees 500000. Documents to be obtained: Deed of hypothecation. Promissory note. Letter of continuity. Letter of lien & setoff. Mortgage formalities in respect of collateral security. Declaration about ownership of goods. Letter of access for inspection of shop/godown. Letter of guarantee in case of third party guarantee. Copy of sanction letter duly acknowledged by the borrowers.
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8) Personal and Professional Loan:

Purpose: For purchase of office requirements. Eligibility: Medical practitioners including Dentists, Charted Accountants, Cost Accountants, Practicing Company Secretary, Lawyers, Solicitors, Engineers, Architects, Surveyors, Construction Contractors, or Management Consultants. Rate of interest: 14% Margin: 75% of amount. Security: Bills Quotation
Comparison of interest rate of personal and professional loan

SBI BANK SBM BANK SBH BANK AXIS BANK ANDRA BANK CBS BANK 10% 13% 11.25% 15%-23% 15.5%-15.75% 14%
Comparison of interest rate of personal and professional loan of different banks.
Interpretation: The Personal and professional loan of CBS banks interest rate is less compared to axis and andhra banks and it is more than SBI,SBH and SBM banks.
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9)
Loan on Pigmy Depositors:

Purpose: Scheme for pigmy depositors to meet any contingencies. Eligibility: Regular contributor for pigmy for 2 years. Quantum of loan: 80% of the pigmy amount.
10)
Loan on Recurring Deposit:
This deposit is paid against amount of 80% of deposit.
11)
Mortgage Loan:
Purpose: Issued for any purpose repayment of old debt, agriculture, trade, construction etc, Margin: 60% of collateral securities Rate of interest: 14% Repayment period: up to 5 years. This is medium term loan. Securities: Collateral securities like land & building etc,
12)
Over draft Account:
Purpose: for improvement of business. Eligibility: for traders Margin: up to 500000 Rate of interest: 15%. Security: collateral securities (land & building). Renewal for every 1 year.
13)
Consumption loan:
Purpose: given for purchase of consumer durables like TV, Refrigerators. Eligibility: salaried/ non salaried class. Rate of interest: 14% Surety: two members
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14)
Key loan:
Purpose: for seasonal requirements Eligibility: for traders Rate of interest: 13% Security: against the pledge of stock-paddy, rice, ground nuts. Borrower should pay insurance on the stock & bank charges.
15)
Personal loan:
Rate of interest: 16% Purpose: for general purpose. Surety: two members is given up to 25%.
16)
Hypothecation loan:
Purpose: to purchase official requirements like X-ray machine, printing off set. Rate of interest: 14% Repayment period: 5 years Eligibility: Doctors, Printers Margin: 75% of amount Security: hypothecation of plant & machinery
17)
Warehouse receipt loan:
Purpose: to meet the ware house facilities Margin: up to 60% Securities: ware house security receipt issued by the ware house authorities Rate of interest: 14% Goods pledge in the name of financial institute.
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18)
Loan on poultry form or dairy loan:
Eligibility: for the formers as agriculture allied activity. Purpose: poultry form, piggery of birds Security: poultry form premier along with the stocks. Additional security of land & building. This type of loan will be treated as priority sector lending by the RBI. Surety: two members Rate of interest: 14%
19)
Salary earner loan:
Eligibility: employees of all kinds. Rate of interest: 16% Surety: two members Purpose: to meet their personal requirements. Security: undertaking letter, salary certificate/ against their wages.
Recurring bank deposit accounts:
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Financial Assistance by The CBS Bank, gangavathi Recurring deposit account are variants of and innovations over the savings bank accounts. In short, they are a form of savings deposits. Features of Recurring Deposit Accounts: 1. It is meant for for people who have regular monthly savings. 2. It encourages savings habit among the depositors. 3. Fixed some of for an agreed period. 4. Monthly installments has to be made.
Comparison of Recurring deposit interest rate of different banks

Name of the Bank Ing vasya State bank of India State Bank of Mysore State Bank of Hyderabad Axis Bank Andhar bank Channabasava Swamy Bank Rate of Interest 3.4% 0.50% 0.25% 1.50% 5.25% 2.5% 7.25%
Comparison of recurring deposits interest rates of different banks
The above table shows that the interest of recurring deposit a/c of CBS bank is more than other banks.
Savings bank account Interest
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Name of the Bank Ing vasya State bank of India State Bank of Mysore State Bank of Hyderabad Axis Bank Andhar bank Channabasava Swamy Bank
Rate of Interest 1.40% 1.50% 1.25% 1.50% 1.25% 1.25% 1.00%
Interpretation: The above table shows that the interest of Savings bank a/c of CBS bank is less than other nationalized banks.
Guidelines on Documentation:
Documentation is the term used to describe the execution of documents in proper from and in accordance with the requirements of low proper documentation constitutes the legal security of the bank. Since it establishes the legal relationship between the Bank and the
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Financial Assistance by The CBS Bank, gangavathi borrower. Documents should be properly drawn up executed and stamped as required by law. They should also be attested and registered where so required by law. Then only the rights and obligations of the bank and the borrower can be said to have established. Documentation is necessary to enforce the Banks right against the borrower to recover the amount advanced. Keep in mind the following Do s and Dont s of Documentation. Do: Issue a letter with terms and conditions of credit facilities sanctioned and obtain acknowledgement of the borrower/s and guarantor/s. Get the documents filled up and then get them executed in the presence of an officer of the bank.
Use correct form of DP note as per the constitution of the borrower. Obtain full signature of the borrower wherever there is any alteration / addition / deletion of the document.
Ensure that the document is adequately stamped as per the law applicable in the state where it is executed. Use proper description of stamp on documents. Get the revenue stamp cancelled with the signature of the borrower.
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Financial Assistance by The CBS Bank, gangavathi Stamp the document executed out side India with in 3 months after it is received in the country. Mention the rare of increase linking to prime lending race except in case of advance against deposits.
In the case of illiterate borrowers, write the name of the illiterate to person below the thump impression mark. Obtain a statement signed by a third party staring that the contents of the document were explained to the illiterate borrower.
Obtain signatures of all parties to the document. Examine all documents in detail before disbursement.
Ensure that charges requiring registration are filed with the registrar of companies as per Section 125 of the Indian Companies Act. Send a copy of the certificate of registration to the borrower after receiving the original.
Verify the articles of association above use of Common Seat of the company on documents. Examine fully the legal opinion on property issued by the advocate.
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Financial Assistance by The CBS Bank, gangavathi Send the mortgage duel for registration to the Sub registrar Draw the memorandum in case of equitable mortgage on the next day of the deposit of the instrument. Take acknowledgement of debt fro borrower/guarantor once in six months. Try to obtain debit balance confirmation / acknowledgement of debt on banks format from all parents / guarantor. Obtain signature of the party whenever payment is made into loan accounts. Obtain fresh DP note and agreement for revival of time barred debt for full amount due up to date. (including interest up to date) Issue a notice to the borrower guarantor before filing of suit. Keep the envelope unopened if the Suit Notice or Letter is returned undelivered or refused. Obtain fixed deposit receipt duly discharged by all the joint holders along with the letter of lien.
Do Not: Disburse advance without obtaining all documents as per sanction letter. Hand over the bank documents to the borrower for execution. 51
Send documents by post to the borrower for execution. Fill up document unless adequate stamp duty is paid. Get the document typed. Keep any column in the document blank. Use different color ink / pen for filing up a document. Obtain signature of executants without filing up the documents. Affix revenue stamp one below the other. Cancel the revenue stamp on DP note by crossing them as X Accept share signatures of borrowers on documents unless it is required as per rules. Attach blank stamp papers to the document. Disburse loan without registering the mortgage deed. Accept photocopy / true copy of title deed for equitable mortgage. Accept any letter from the owner of the property along with the title deeds.
Prepare memorandum on the same day of deposit of title deeds.
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Issue receipt for the title deeds on the same day. Part with the title deeds / securities during the currency of advance. Obtain revised hypothecation agreement for enhanced limit in respect of limited companies. Advance loan against party paid up shares. Accept a minor as a borrower / Co-borrower / guarantor. Take DP notes separately for each installment disbursed. Punch in the documents. Offer opinion on document to the borrower.
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Steps involved in documentation:

1. Drafting of documents. 2. Preparing a set of documents. a. b. c. d. Constitution of borrower. Types of advance granted. Nature of security offered. Types of charge to be created.
2. Stamping of documents. 3. Filling up of documents. 4. Execution of documents.
Limitation:
Limitation period is the time limit within which an action can be taken in a Court of Law. Limitation Act l963 prescribed the periods of limitation for filing various types of suits and appeals. A court will not entertain a suit filed after the expiry of limitation period as laid down by law. If there is no limitation the Courts will flooded with litigations relating to very old transactions. It becomes very difficult either to prove or disprove the transactions in view of non availability of the concerned persons to the tractions or relevant documents. More over, the law intends to protect those people who are vigilant about their rights. The limitation act bars only the legal remedy but not the right of a creditor. He can exercise the right of lien, and also recover his dues by disposing of the securities in his possession like goods under pledge, even after the expiry of documents.
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Limitation can be extended by the Acts of the parties in any one of the fallowing ways:
Renewal of documents: If the borrower executes a fresh set of documents for the existing dept, the limitation is automatically extended from the date of renevel of documents. Acknowledgement: According to Sec.l8 of limitation Act, when a borrower acknowledges his liability in writing before the expiry of the limitation period, A fresh period of limitation commence from the date of signing such acknowledgement. Part Payment: According to Sec.l9 of limitation Act, when a borrower makes part payment on account of the debt either by himself or his agent duly authorized by him in this behalf, before expiry of limitation period, a fresh period of limitation shall commence from the date of such payment. In order to take advantage under this section, the following requisites are to be complied with: a. Part payment should be made by the borrower or by his agent. b. Part payment must have been made with the knowledge and consent of the borrower. c. d. Part payment should be received before expiry of limitation period. Part payment should have been received by the creditor.
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Revival of time barred debt:

It is not possible to review time barred debt either by taking acknowledgement or by accepting part payment after the expiry of the limitation period. A time barred debt should be given a new life by a specific and express promise preparably in the form of an Agreement. a. b. Fresh promise to pay the time barred debt is to be obtained in writing. Fresh D.P. note is to be obtained. In case of term loans the amount
outstanding inclusive of interest up to date is to be filled in the D.P.Note. Where as, in case of running accounts like cash credits and over drafts, the amount of limit or outstanding inclusive of interest up to date, whichever is more, is to be filled the D.P.note.
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Annual report as on year ending 2008-2009
INCOME INTEREST EARNED AMOUNT INTEREST/DISCOUNT ADVANCES/BILLS Interest from Gold Loan Interest from Loan on FD Interest from loan of RD Interest from LFD (Double Scheme) Interest from Loan on Pigmy Interest from Trade Loan Interest from Over Draft Interest from Cash Credit Limit Interest from Key Loan Interest from Poultry Loan Interest from Surity Loan Interest from Personal Loan Interest from Hypothecation Loan Interest from Vehicle Loan Interest from Housing Loan Interest from Loan on Securities Interest from Salary Earner Loan Interest from Mortgage Loan Interest On Bills Purchased Interest On Professional Loan Interest On Loan on warehouse Receipt Interest On Investments (FD/GOI Sec) Others Total ON 20,917,494.40 43,358 202,443 1,573 29,588 827 589,692 3,241,645 1,934,726 3,617,845 4,250 217,898 33,038 701,479 986,567 691,665 1,285,637 612,500 6,186,832 450,123 1,675 84,133 12,677,260.40 33,594,754.80
OTHER INCOMES AMOUNT
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Financial Assistance by The CBS Bank, gangavathi Commission, Exchange and Brokerage Profit on Sale of Investment Misc.Incomes Other Income Cheque Book Charges Transfer fee for Share Loan Application Fee Processing Fee Share Fee Share Application Fee Admission Fee Misc.Charges on Current & S.B.Accounts Locker Rent NDC Charges Pigmy Misappropriation Amt Recovered 40,061.98 33,041 572 13,983 833,697 5,525 1,110 1,380 277,790.37 30,500 5,470.52 170,000 Total 2,549,083.86 1,126,952.99 NIL 1,422,130.87
EXPENDITURE INTEREST EXPENDITURE Interest Paid on Deposits Saving Bank Deposits Fixed Deposits Recurring Deposits Pigmy Deposits Interest On R.B.I./Inter.-Bank Barrowings Others
15,503,213.87 1,936,439 12,379,045 84,210 502 1,103,017.87 Total 15,503,213.87
OPARATING EXPENSES Payments and provissions for Employees Salaries Provident Fund Ex-gracia Gratuity & Group Insurance Medical Allowances Management Expenses Board Meeting Expenses Travelling & Training Expenses
3,675,795 2,736,186 346,962 416,976 114,484 61,187 237,540 128,089 106,751 58
Financial Assistance by The CBS Bank, gangavathi Car Hire & Fuel Charges Rent Taxes Lighting and Insurance Rent Electricity Insurance Printing, Stationery and Advertisement Printing & Stationery Advertisement & Publicity Depreciation on Fixed Assets/Furnitures Audit Fees Postage, Telegrams & Telephone Etc. Postage/Courier Charges Telephone Charges Other Expenditures Newspapers & Periodicals Repairs & Main. And Computer AMC AMC Charges Computer Accessories Business Development Expenses Office Expenses Quest Expenses Local Conveyance Clearing House & Locker Rent G B Meeting Expenses Donations Federation Fees Loan Recovery Expenses Fringe Benefit Tax Provision for Bad/doubtful debts Income Tax Provision Professional Tax Depreciation on investments Remuneration to Advisor Vehicle Maintenance expenses Commission Paid to Banks 19,139 63,127.50 109,772 2,162 4,938 83,120 1,528 7,000 7,500 144,194 44,310 31,500 3,462 37,270 828,719 3,372,884.13 2,500 3,200,000 84,000 243,112.47 49,329.51 Total BALANCE SHEET AS ON 31st MARCH, 2009 5,442,722.88 2,700 621,339 103,200 195,113 323,026.09 215,015.25 126,610.25 88,403 572,134 25,000 95,899.54 24,501 71,398.54
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Capital & Liabilities Capital Reserve & Surplus Funds Deposits Borrowings Other Liabilities & Provisions Total Profit & Loss Account Grand Total CAPITAL Paid up Share Capital Loan Additional Share amount Associate Membership Total Reserves & Surplus Statutory Reserves Co-Operative Education Fund Souharda Co-Operative Education Fund Building Fund Charity Fund Propaganda Fund Members Death Fund Dividend Equalization Fund Jubilee Fund Provision for Standard Assets Bad Debt Fund(BDDR) Investment Depreciation Reserve Management Reserve Fund Contingency Operative Management Fund Common Good Fund Education Donation Fund Members Welfare Fund Staff Welfare Fund Directors & Staff Training Fund Total DEPOSITS
AMOUNT 7,748,212 62,056,533.56 263,426,920.73 362,482.11 23,794,919.41 357,389,068 6,847,464.30 364,236,532 4,225,112 3,431,526 91,574 7,748,212 32,866,574.65 193,313.74 3,259 6,853,656 1,345,410 52,012 382,478 201,026 1,454,176 314,000 6,972,944 9,091,470 225,861.18 309,553.76 95,480.09 81,273.66 377,374 801,575 435,096 62,056,533.56
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Financial Assistance by The CBS Bank, gangavathi Demand Deposits From Banks From Others Current Deposits Current Deposits Credit Balance of OD Credit Balance of CCL Saving Bank Deposits Term Deposits Fixed Deposits Recurring Deposits Pigmy Deposits 47,599,732.17 883,475.30 556,617.82 107,725,189.34 106,661,906.10 105,491,223.40 1,019,527.00 151,155.70 Total 263426920.7 Nil Nil 49,039,825.29
BORROWINGS Borrowings in India From Reserve Bank of India From Other Banks SBH OD Borrowings Outside India Total
Nil 362,482.11 Nil 362,482.11
OTHER LIABILITIES & PROVISIONS Bills Payable Inter Office Adjustments(Net) Others (Including Provisions) Interest Payable on Deposits On Fixed Deposits On Recurring Deposits On Staff Security Deposits Auditors Expenditure Share Suspense Pay Order Provident Fund Payable Professional Tax Payable Staff LIC Payable Dividend Payable Sundry Creditors A/c Income Tax Payable Exgracia Payable (Bonus) Pigmy Fraue Provision Anganawal Suspense salary A/C
Nil Nil 17,842,183.00 17,745,936.00 96,247.00 22,425 79,769.46 1,414,552 103,066 2,530 16,293 1,549,956.80 11,232.25 1,990,514.13 409,976 162,000 119,379.49 61
Financial Assistance by The CBS Bank, gangavathi TDS Payable A/c Clearing sunspence Lty A/c Total 2,575 68,467.28 23794919.41
CASH & BALANCES WITH RBI Cash on Hond Balance with RBI Current Accounts Other Accounts Total 250,731 Nil Nil 250,731
BALANCES WITH BANKS, MONEY AT CALL AND SHORT NOTICE Balance with Banks(in Current Accounts) State Bank of Hyderbad A/c.No.1750 Syndicate OD A/C State Bank of Mysore, Gangavati State Bank of India, Gangavathi. Canar Bank A/C. No.883/VII Cyndicate Bank, Multicity A/c Andra Bank, Gangavati Vijay Bank, Gangavati Vysya Bank A/C. No.850 KSC Bank, Bangalore RDCC Bank, Gvt.A/C. No.34 RDCC Bank, Raichur A/c.No.8 RDCC Bank,Koppal RDCC Bank, Hubli A/c5500 HDFC Current A/c HDFC Bank, Bangalore A/c. 194 HDFC Bank, Hubli A/c.No.133 Nagar U C B, S R Nagar Balance with Bank (in other Deposit Accounts) Outside Total INVESTEMENTS In India Government Securities 28,500,000.00 465,182.43 2,197,406.95 192,341 1,068,577.17 24,472.25 1,352,456.17 1,468,877.70 83,578.00 128,264.40 3,553,298.00 4,964,993.00 1,566,916.48 2,357,559.00 17,686,449.84 97,250.87 287,795.41 1,038,218.12 6,482,763.31 134,239.00 Nil 45,150,638.60
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Financial Assistance by The CBS Bank, gangavathi Others Securities Others Investments Investment in IDBI Shares in Central Co-operative Bank, Raichur Others (Deposits with) Total 15,000,000.00 26,122,050.00 10,100,000.00 10,000.00 80,564,588.61 160,296,638.61
LOANS & ADVANCES Bills Discount Purchases Cash Creditors on Demand Overdraft Term Loans Total FIXED ASSETS(DEAD STOCK) Premises Other Fixed Assets Bank Vehicle Asset A/c Fixed Assets Furiniture & Fixtures Generator Computers & Accessories Air-Conditioners Automation Equipments Total Nil 741,689.00 301,841.00 1,874,422.60 77,486.00 128,266.40 107,612.00 201,298.00 3432615 8,022.00 14,153,738.38 18,275,391.68 120,834,946.00 153,272,098.06
Other Assets Inter-Office Adjustment Stationery & Loans Others Telephone Deposit KPTCL Deposits Staff Festival Advance Building Advance G-Security Prem To Amortise TDS Reservable 136,429.75 15,289.00 61,863.00 21,700.00 5,530.00 653,435.00 715,605.00
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Financial Assistance by The CBS Bank, gangavathi Libra Loans Pigmy Expenses(KV Swamy) Clean Expenses(asset) A/C TOTAL 8,000.00 61,133.00 154,826.09 1833810.84
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CHAPTER-5
FINDINGS
Liabilities are more than bank balance. Branch network is limited to a particular area.
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As the city is based on agriculture, so the bank is based on agricultural loan mainly. Self operated minor deposits are not allowed.
Interest rates are high compared to nationalized banks. Interest from mortgage loan is very high compared to other loans given by bank.
Bank is receiving higher interests on FD compared to SB,RD and pigmy. Bills payable is nill.
The bank is not collecting feasible securities on loans.
Suggestions and Recommendations

Since liabilities are more than bank balance, bank should increase the customers account,
deposits and there should be more transaction.
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Financial Assistance by The CBS Bank, gangavathi Bank should open their new branches in other places.
As bank is giving loan to farmers only, so they should extend their loan facility to
industries also. As nationalized banks are giving loan at low interest rates, many of them are benefited
with it. So in order to have more transaction they should reduce the interest rates while providing loan. Loan recovery should be done as soon as the loan period completes. Banks should cullet the feasible securities Bank should provide quick service to the customer
Conclusion
After the study, we can come to a conclusion that, C.B.S Bank has to improve in all the aspects of its banking operations, the C.B.S Bank can still strengthen its position by looking into the following.
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Bank should increase the customers account, deposits and there should be more transaction. Bank should extend their loan facility to industries also. Bank should provide loan at low interest rates. Recovery of loan should be done otherwise bank will suffer huge loss. Bank should keep observing the nationalized banks in order to develop its functional operations. Everything has been taken into to know the financial assistance of the C.B.S Bank.
BIBLIOGRAPHY:
TEXT BOOKS: 1)BANKING LAW AND PRACTIES (B.S.RAMAN) 2)CORPORATE BANKING
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Financial Assistance by The CBS Bank, gangavathi (V.MADUSUDION) WEB SITE: WWW.ING.COM WWW.SBI.COM WWW.SBM.COM WWW.SBH.COM WWW. WWW.ANDRA BANK.COM DOCUMENT: ANNULE REPORTS JENERNAL
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Financial Assistance by The Cbs Bank Mba Finance Project Report

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Financial Assistance by The Cbs Bank Mba Finance Project Report

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Financial Assistance by the CBS Bank, Gangavathi

CBS BANK GUIDELANCE ANNUAL REPORT AS ON 2008-2009

20-47 48-55 56-66 68-70

CHAPTER-5 FINDINGS, SUGGESTION AND CONCLUSION

BABASAB PATIL FINANCE PROJECT REPORT

Financial Assistance by the CBS Bank, Gangavathi

BABASAB PATIL FINANCE PROJECT REPORT

Financial Assistance by the CBS Bank, Gangavathi

BABASAB PATIL FINANCE PROJECT REPORT

Financial Assistance by the CBS Bank, Gangavathi

METHODOLOGY Sources of Data :

Limitations of the study:

BABASAB PATIL FINANCE PROJECT REPORT

BABASAB PATIL FINANCE PROJECT REPORT

Financial Assistance by the CBS Bank, Gangavathi

BABASAB PATIL FINANCE PROJECT REPORT

Financial Assistance by the CBS Bank, Gangavathi

What are Co-Operative Banks?

BABASAB PATIL FINANCE PROJECT REPORT

Definition of Co-Operative Bank:

Objectives of Co-Operative Banks:

BABASAB PATIL FINANCE PROJECT REPORT

CHANNABASAVA SWAMY BANK PROFILE:

BABASAB PATIL FINANCE PROJECT REPORT

satisfy customer needs and wants.

Special Features of Bank:

BABASAB PATIL FINANCE PROJECT REPORT

OBJECTIVES OF CHANNABASAVA SWAMY BANK Objectives:

Branch Manager Maintenance

Manager for Loan Accountant

BABASAB PATIL FINANCE PROJECT REPORT

BABASAB PATIL FINANCE PROJECT REPORT

Financial Assistance by the CBS Bank, Gangavathi

THEORETICAL BACKGROUND NEED FOR THE STUDY

Objectives of the study:

BABASAB PATIL FINANCE PROJECT REPORT

Financial Assistance by the CBS Bank, Gangavathi

METHODOLOGY Sources of Data :

BABASAB PATIL FINANCE PROJECT REPORT

Meaning of Loans: (In General)

Types of Loans and Advances:

BABASAB PATIL FINANCE PROJECT REPORT

banks provide long term loans to a very limited extent only.

BABASAB PATIL FINANCE PROJECT REPORT

of the loans. Demerits: the loan.

BABASAB PATIL FINANCE PROJECT REPORT

Principle of sound lending:

BABASAB PATIL FINANCE PROJECT REPORT

BABASAB PATIL FINANCE PROJECT REPORT

Financial Assistance by the CBS Bank, Gangavathi

FINANCIAL ASSISTANCE BY THE CHANNABASAVA SWAMY BANK

Loans against Fixed Deposit

BABASAB PATIL FINANCE PROJECT REPORT

B. Deposit in joint name

All depositor jointly or one of the depositors with

BABASAB PATIL FINANCE PROJECT REPORT

Financial Assistance by The CBS Bank, gangavathi

SVMVVSANGAS INSTUTION OF MANAGEMENT STUDIES,ILKAL

SVMVVSANGAS INSTUTION OF MANAGEMENT STUDIES,ILKAL

Financial Assistance by The CBS Bank, gangavathi

ANDRA BANK 7.5%

SVMVVSANGAS INSTUTION OF MANAGEMENT STUDIES,ILKAL

Financial Assistance by The CBS Bank, gangavathi