Presented By: Devashish Taylor Sonakshi Joshi

PGDRM

OBJECTIVE
Main Objectives: Assessment of agricultural credit given by BoM.

Scope of BoM in Mahela area and nearby villages.

Other ancillary objectives were: To analyze the Bank of Maharashtra branch.

To understand needs of agriculture credit amongst farmers.

To know awareness of farmers about Agriculture Credit. To know various services (ATM, Net banking, KCC etc.) provided. To check timely availability of Bank Services to customers. To know relationship of bank staff with the customers.

 BoM was established in 1935. Head office is in Pune. Got nationalized in 1969. Exceeded required 40% PSL. Total advances Rs. 56059.76 crore in the year 2012. Total 1589 branches.
M M

Philosophy Technology with Personal Touch

M
Mobilization of Money

Modernization of Methods

Motivation of Staff

Motto One Family, One Bank

 Unavailability of respondents on time caused undue delay. Staff not possessing much knowledge about the various plans (PLP, DAP etc.) and terms (ANBC etc.). Limited access to software and data of bank.

Problem of generalization.

RESEARCH TYPE

RESEARCH TOOLS

Exploratory

Questionnaire

Analytical

Observation

Informal Interview

SAMPLE SIZE
Loanees
Potential Loanees

Simple Random (for Loanees) Area-wise (for Potential Loanees)

50 100

Convenient Sampling

SAMPLING TECHNIQUE

 MS Excel
MS Word

Bar Graph
Pie Chart

Analysis Tools

Data Interpretation

Analysis of Existing Customers

Analysis of Potential Customers

SWOT Analysis of BoM branch

Awareness about Schemes

28 %

Aware

Unaware

72 %

Total Respondents= 50

Number of various Loans taken

4% Kharif 45 % 51 % Rabi

Dairy

Total Respondents= 50

Processing Time Taken by Bank

8% > 5 days & < 10 days 50 % 42 % > 20 days

> 10 days & < 20 days

Total Respondents= 50

Communication Made by Bank about Schemes/ Changes

14 % 28 %
Yes

Sometimes
No

58 %

Total Respondents= 50

Importance Parameter
20 18 16 14 12 10 8 6 4 2 0

19%

19%

15%
12% 12% 10%

9% 4%

Total Respondents= 50
NOTE: NUMBER OF RESPONDENTS HAVE SELECTED MORE THAN ONE OPTION

Respondents Covered in different Villages

(Potential)

Boraj

4 4

3 3 4 42

Bobas Surpura Kapadiyawas Ugadiyawas Girdharipura Devla

5
5

5 7
18

Gadota Jharna Kesrisinghpura Begas

Total Respondents= 100

Awareness about Schemes

(Potential)

36 % 64 %

Aware Unaware

Total Respondents= 100

Respondents' Interest in Availing Loan

(Potential)

11%

Interested

Not Interested
89%

Total Respondents= 100

Purpose of Loan
(Potential)

80
70 60 50 40 30 20 10

69 %

27 %
3%
Rabi/Kharif Dairy Warehousing

1%
Farm Mechanism

Total Respondents= 100

Rabi/Kharif Loans' Demand in Villages

(Potential)

2% 5%3% 5% 5%

Boraj
34%

Boraj Bobas Ugadiyawas Girdharipura

5%
6%

Devla
Surpura Kapadiyawas Gadota

8%
8% 19%

Jharna
Kesrisinghpura Begas

Total Respondents= 100

Dairy Loans' Demand in Villages

(Potential)

4% 4% 9%

Boraj
Boraj Bobas Surpura 57% Kapadiyawas Jharna Kesrisinghpura

9%

17%

Total Respondents= 100

Importance Parameters
(Potential) 25 20 15

20 % 17 % 16 % 13 % 11 % 11 %

10
5 0

8%
4%

Total Respondents= 100

NOTE: NUMBER OF RESPONDENTS HAVE SELECTED MORE THAN ONE OPTION

Banks Preferred
(Potential)

3%

22 %

BoM SBBJ
75 %

Others

Total Respondents= 100

TRENGTHS

Better CRM. Time flexibility for customers. KCC given within 10-12 days.

No NPA.
Agri-qualified Staff. CBS enabled branch.

Availability of ATM in its own

premises. Market Leader for Dairy Loans.

EAKNESSES

Less space in branch.

"No frill accounts" are not opened. Only 11 ATM machines all over Rajasthan.

No schemes followed for warehousing.

Bank is 7-9 kms far away from villages where there is better scope for agriculture finance.

PPORTUNITIES

Scope

in

Dairy

Loan

is

enormous. Huge untapped market. People becoming more service oriented.

Marginal propensity to save is

increasing.

HREATS

Low Entry Barrier.

SBBJ is major competitor for KCC. Private banks venturing into rural area (ICICI, HDFC, AXIS, etc.).

GENERAL FINDINGS: "No frill accounts" are not opened. The bank has a staff of 3 (including Branch Member) and 2 peons. Only the Branch Manager is Agri-qualified. ATM of the Bank had some connectivity problem due to which it was out-of-service after every 2-3 weeks or so. The branch does not have regular supply of electricity.

MAIN FINDINGS: Vast rural market untapped. Bank is having its monopoly for providing Dairy Loans. The customer-relationship base of the bank is very strong. KCC issued within 10-12 days of applying for loan. No NPA present till the date we performed our research work. Bank is 7-9 kms far away from where there is a better scope. Rain-fed area so agri-production is limiting year by year. Collateral is accepted even for the loan of less than Rs. 1 lac.

Some Comparative Findings of Loanees & Potential Loanees

CRITERIA Awareness about 72% LOANEES POTENTIAL LOANEES
36%

Schemes
Kharif/ Loans Dairy Loans Most Rabi 51% (Kharif) & 45% 69%
(Rabi) 4% 27%

Important RoI & Relationship Relationship with Customers

with Customers Documents Required

Parameter Least

Important Documents Required

Parameter

 Special website for agri-purpose should be created by head office. Weekly camps should be organized in Boraj for Dairy Loans. Schemes for Warehousing purpose (RGS) should be started. Bank should go for KGC Scheme for goodwill customers. More Agri-qualified staff and rural-area experienced staff should be appointed in the branch. Loans other than cash should be provided.

.
No frill accounts should be facilitated. Helpline Number Facility should be provided. Relationship with customers should be maintained. Bank should work upon its ATM machine for its non-functionality.