project on bhadravathi canara bank
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CANARA BANK
INTRODUCTION TO BANKING
INTRODUCTION:
Banking system has occupied an important position in our commercial
world Banking institution is indispensable Banking system is playing a very
important role in the economic development of our country. Commercial
banks are having loans share in the total banking operation in our nation.
Commercial banks are oldest institutions having a wide network of business.
Banks render very valuable service to the community to the trade and
industry. They keep the wheels of trade, commerce and Industry always
revolving. Banks providing financial assistance to small scale and large
scale industries. Banks today are backbone of modern industry. They are
essential part of the community.
ORIGIN OF BANK:
There are different opinions regarding the origin of the term bank.
According to some it is derived from Italian word Banco'. Latin word
'BANCUS' French word 'Banque' which means "a bench". In olden day’s
European bankers using bench to transact their banking activities but
according to others. The word "Bank" is derived from German word 'Bank
which means 'Common fund raised form a large number of public ".
Customer and banker relation as per Act Banker:
Banker is one who does the business of banking. He is a dealer in
money. Since he accepts deposits and lends it to needy people or units.
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Banker acts as an agent in borrower of debts and a surveryor of credit.
According to American definition a banker is a dealer in credit. When a
person uses funds of others for giving credit he is known as a banker.
According to Herbert Hart "A banker is one who in the ordinary
course of his business honors cheque drawn upon him by persons fro and for
whom he receives money on current accounts ".
Features of Banker
1. Acceptance of deposits form public
2. Profitable employment of funds so collected
3. Obligation to repay deposits on demand
4. Lending of money
5. Banking as a main business
Functions of Banker
1. Primary function
2. Secondary Function
1. Primary function:
a) Acceptance of deposits
b) Granting or sanction of advance
c) Discounting bill of exchange
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2. Secondary functions:
A) Agency service:
a) Collection of income on behalf of customer
b) Making payment on behalf of customer
c) Purchasing and sell of security on behalf of customer
d) Acting as a trustee and executor
B) General utility service:
a) Provision of deposit vault arrangement
b) Issue of letter of credit, travelers cheque, etc.
c) Underwriting of loans raised by government.
d) Remittance of funds
Classification of Banks:
On the basis of functions, Banks can be classified in to 6 types.
1) Commercial Bank:
Commercial bank usually requires deposits for a short period and
supplies short term credit facilities to trade and commerce. Commercial
banks are oldest institutions having wide network of branches. One of
commercial bank in our country Canara having 10000 branches all over
India.
2. Industrial Bank:
Industrial Bank is to meet long term credit facilities to needs of
industries which provide credit to Industrial undertakings.
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CANARA BANK
3. Agricultural banks;
Credit need of agriculturist is of 3 types. They are short, medium and
long-term short term credit is required for the purchase of manure, seeds,
etc. medium term is provided for purchase of agricultural implements and
cattles long term for making permanent improvement of land.
4) Central Bank
It is the top for banking institution operating in the country. It does not
complete with other banks for profit but acts as the bankers bank and lender
of last resort
5) Savings Bank:
Saving banks encourages the habit of saving among the people of
community under such type of banking deposits received are not withdrawal
on demand. Beyond a certain limit. Any withdrawal beyond a certain limit
requires a prior notice.
6) Exchange banks:
Those banks finance mainly the foreign exchange business that is the
export and import trade of a country as they mainly finance foreign
exchange business. They are called 'exchange banks’.
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CANARA BANK
RESEARCH DESIGN
INTRODUCTION TO PROJECT REPORT
The project report entitled "LENDING PATTERNS ” WITH
SPECIAL REFERENCE TO CANARA BANK BHADRAVATHI
BRANCH has been brought out in know performance of branch and
customer opinion about service provided by branch.
STATEMENT OF PROBLEM:
To study the problems related to lending patterns of canara bank.
OBJECTIVES:
1. To make detailed study of "credit facilities" provided by bank.
2. To know utilization of service of bank by customers.
3. To study problems connected with granting loans to customers.
4. To know opinion of customer regarding loans provided by
bank.
AREA OF STUDY:
Study of project is restricted to only Bhadravati.
METHODOLOGY:
Primary data has been collected through questionnaire and through
discussion with bank manager and staff. Secondary data has been collected
through pamphlets, journals, and internet and from reference books.
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RESEARCH INSTRUMENT: Questionnaire
LIMITS OF PROJECT REPORT:
1. Customer will not give correct opinion about the survey.
2. Accuracy of this project is limited because of factors like limitation of
time.
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CANARA BANK
INDUSTRY PROFILE
HISTORY OF BANKING IN INDIA
The development of modern banking in India begins with banking
activities undertaken by English agency house at Calcutta and Bombay
which combined banking with trading. It appears that the earliest bank on
western line was established at Madras as early as 1683. The first joint stock
bank was the bank of Hindustan established at Calcutta in 1770. At that time
another banks were established. Bank of Bombay in 1840. Bank of madras
1843 and Bank of Bengal. All these 3 banks were amalgamated in1921 and
was named as 'The imperial bank of India and again in 1955 this bank was
taken over by government and was renamed as state bank of India.
In 1889 other commercial banks were established. It was the first pure
Indian joint stock bank it was followed by Punjab national bank in 1894 and
so on.
Growth of banks was very slow in the beginning. In 1913 and 1922 108
banks were failed and In 1922 and 1936 373 banks failed, only after
Independence banking system made a rapid progress now Indian banking
system is one of the developed banking systems of the world.
Indian Banking regulation act 1949:
Sect 5 (c) of the banking regulation act of 1949 defines the term
'Banking company' as "any company which transacts the business of
banking in India".
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Sec 5 (1) (b) of the same act defines the term "Banking" as Accepting from
the purposes of lending or investment of deposits of money from the public
repayable on demand or otherwise and withdrawal by cheque, draft order or
otherwise.
INDIAN BANKING HISTORY:-
Banking is also of very ancient origin in India. It is stated by
authoritative writers that as early as the vedic period, records of taking and
giving of credits are to be found. All throughout the period of Indian history,
money-lenders who were called either bankers or seths, or shorffs, are
recorded to have existed, and are stated to have carried on a roaring business
in money-lending and banking. The great Hindu lawgiver, Manoo, who is
said to have flourished about the second or third century A D also devotes a
section of his work to the question of deposits and pledges. By the 12 th
century, the Jain bankers are recorded in history to have flourished and the
famous Dilwara and Mount Abu, is Said to have been build by the two join
bankers some where between 1197 and 1247 AD.
The banking system in India and the outcome of innovation
considerably influenced by historical growth and past transaction. The
evolution and expansion of banking system consists of well – defined places
of banking developed in India. Originally, India has Indigenous banking
system. The impact of west resulted in the modernization of the banking
system in India, as joint stock ventures, the development of joint stock
banking was helped through statutes. Culminated in social control and
nationalization of banks which were considered very big.
The need for a ventral bank in India as felt as early as in 1873, hen
Warren Hastings had recommended the establishment of general band of
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CANARA BANK
Bengal. In 1921, the imperial bank of India as setup by amalgamating three
presidency banks. Though primarily a commercial bank, it performed certain
central banking functions, such as acting as a banker of government, the
issue of notes, however continued to be the direct responsibility of the
central Government.
In 1926, the Royal Commission of India currency and finance
suggested the establishment of Reserve Bank of India to act as a central
bank. In January 1927, a bill giving effect to his recommendation as
introduced in the legislative assembly. The issue assumed importance again
in 133 with the publication of the white pages on Indian constitutional
reforms.
Again with the recommendation of the central banking enquiry
committee a fresh bill called Reserve Bank f India bill as introduced on 8 th
September 1933, the bill as duly passed and become an act on 6 th March
1934 called as Reserve Bank of India Act. The bank was formally
inaugurated on 1st April 19
Development of modern banking:
For the history of modern Banking in India a reference to the English
agency is the days of East India co. would be necessary. The bank of
Hindustan was the first joint stock bank to be established in India under
European management. But soon it failed, in the first half of 19 th century.
The east India co. established 3 banks. Bank of Bengal in 1809. Bank of
Bombay in 1840 and Bank of Madras in 1843. These banks were known as
presidency banks. These 3 banks were amalgamated in 27th Jan 21921 to
form imperial bank of India. The aid commercial bank was perhaps the first
purely joint stock bank to be established in 1889. Walter the Punjab National
Bank. The people's banks were established.
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CANARA BANK
The bank of India was started in 1906. The Indian bank was started in
1906. The Indian bank in 1907. The bank of Baroda in 1908 and the central
bank of India in1911.
Significant Milestones
1st July 1906 – Canara Hindu Permanent Fund Hindu formally registered
with a capital of 2000 shares of Rs. 50/- each, with 4
employees.
1910 – Canara Hindu Permanent Fund renamed as Canara limited
1969 – 14 major banks in the country, including Canara bank,
nationalized on July 19
1976 – 1000th branch inaugurated
1983 – overseas branch at London inaugurated Canara (the bank’s
credit card) launched.
1984 – Merger with the Lakshmi Commercial Bank Limited.
1985 – Commissioning of Indo Hong Kong International Finance
limited
1987 – Canara bank Mutual Fund and Confine homes launched
1989 – Canara bank venture capital fund started
1989-90 – Canara bank factor limited, the factoring subsidiary launched
1992-93 – Became the first bank to articulate and adopt the cherctive
principles of “Good Banking”
1995-96 – Became the first bank to be conferred with 180 9002 certification
for one of its branches in Bangalore
2001-02 – Mar den IPO of the bank
2002-04 – launched internet and mobile banking services
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CANARA BANK
2001-02 – Opened a “Mahila Banking Branch” first of its kind at
Bangalore, for catering exclusively to the financial
requirements of women client.
2004-05 – 100% branch computerization
2005-06 – Entered 100th year in banking service launched core banking
solution in selecting branches number of position in aggregate
business among Nationalized Banks.
2007-08 – Retained Number one position in aggregate business among
nationalized banks.
Signed Moves for commissioning two JVs in Insurance and
Asset.
Management with international major viz HSBC
(Asia Pacific) holding and Roboecco Group.
N.V respectively
2008-09 – Launching of new Brand Identity
Incorporation of insurance and Asset Mqt JVs
Launching of online Trading portal
Launching of a ‘call center’
Switch over to based aII new capital adequacy Frame work
2009-10 – The bank crossed the coveted Rs. 3 lakh Crore in aggregate
business
The bank’s 3rd foreign branch at Shangha commissioned
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CANARA BANK
COMPANY PROFILE
History
The bank founded as “Canara Bank Hindu Permanent Fund in 1906,
by Late Sri. Ammembal Subbo Rao Pai, a Philanthropist, this small seed
blossomed into a limited company as ‘Canara Bank Hindu’ in 1910 and
became Canara Bank in 1969 after nationalization.
“A good bank is not only the financial hear of the community, but also one
with an obligation of helping in every possible manner to improve the
economic conditions of the common people” A Subba Rao Pai.
VISION AND MISSION:
VISION:
To emerge as a best practices bank by pursuing global benchmarks in
profitability, operational efficiency,asset quality,risk management and
expanding global reach.
MISSION:
To provide quality banking services with enhanced customer
orientation,higher value creation for stakeholders and to continue as a
responsive corporate social citizen by effectively blending commercial
pursuits with social banking.
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CANARA BANK
BHADRAVATI BRANCH – A PROFILE
Now a days bank play an important role in the economic system of the
country. In countries like India’s, banking system has to be encouraged in
every rural areas, after the independence of our nation the leaders are taking
more prominence to improve the economic progress of the people. This gave
rise to birth of banks.
In the middle of 19th century there were many banks started in every
part of the nation. Among them some were nationalized and some were non-
nationalized bank. Canara bank is also one of which has its head office at
Bangalore.
To popularize the banking system and to provide more facilities to
rural people Canara bank has started its branches all over India. In
Bhadravathi town Canara bank has one branch. The branch situated in a
middle of the area. . Since that time it was to rendering different types of
services, In the beginning it was running in loss for some years. Because it
did not provide so many schemes and service which were available in main
branch. At that time these branch not have sufficient staff member. Then it
had 3-4 members. Later it increase and now it reached total 15-20 members.
To co-ordinate better relationship with its account holder this branch
has organized several programmes to customer one of them is “Lakshmi
Pooja” and “Customer meet” which was celebrated in different way. This
type of programmes is found in bhadravthi Branch and it also conduct many
computations and distribute prize for winners.
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CANARA BANK
The branch is providing safe deposit locker facility to its customer
form which customers can safeguard their document Jewellary and other
valuable. Houses branch is in the residential area there is too much demand
for lockers because of this now a days facility has become scare.
In the present situation it is helping many people by giving loans and
providing some special facilities and their by trying to level best satisfy its
customers. All that it required in the best support and encouragement from
its customers.
Founding principles
1. To remove superstition and ignorance
2. To spread education among all to sub serve the first principle.
3. To include inculcated the habit of thrift and savings.
4. To transform the financial institution not only as the financial hear of
the community but the social hear as well.
5. To assist the needy
6. To work with sense of service and dedication
7. To develop a concern for fellow human being and sensatory to the
surrounding with a view to make charges remove hardships and
sufferings.
Small and Medium Enterprises (SME)
The bank’s lending to SME units increased substantially from 14245
crores to 18600 in 2008-09 and 18600 crores to 23823 crores in 2008-2009
with a view to enlarge the coverage and cater to the specific needs of SME
sector.
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CANARA BANK
Priority Sector Others:
The outstanding under their sector stood at Rs 37844 crores to Rs.
43203 crores in 2008-09 and Rs. 43203 crores to Rs. 48763 crores in 2009-
10 and banks extended loan from year to year for non-resident deposits. It
was 13,606 crores in 2007-08 and 12,874 crore in 2008-09 and 14,043 crores
in 2009-10.
Differential Rate Interest Scheme:
Under this scheme, the banks has extended financial assistance to
beneficiaries amounting 65 crores in 2007-08, 40 crores in 2008-09, and 48
crores in 2009-10,
The yield on the investment has increased from 12% to 12.5% investment
have been market to the extent of 75% as against the minimum requirement
of 60%
Agricultural Finance:
The total agricultural advance of the work bank increased from Rs
9404 crore to 11,443 crore in 2008-09 and 14,704 crore in 2009-10.
constitution 18% of the net bank credit as against 16% at the end of march
2008-09 and investment on agriculture is RS. 15521 crore in 2007-08 and
Rs. 17996 crore in 2008-09 and 20144 crore in 2009-10
Credit expansion:
The bank’s total advance increased to Rs 10,7238 crore at the end of
the March 2010-11 from Rs 98506 crore at the end of March 2009-10 and
advance increased to Rs 13,8219 crores at end of March 2010-11 and growth
rate 24.02% compared to 28.86% growth recorded during 2009-10 and
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CANARA BANK
28.89% at growth recorded during 2009-10, the credit deposited rate at end
of March 2009 was 69.18%, 2010 was 69.6%, 2011 was 73.96%.
Investment :
The level of investment in govt. securities. Other approved securities
and other securities increased by 2013 crores during the year and touched Rs
15467 crore. The total income from investment for current year Rs 1948
1.53 crore.
Deposit Growth:
The aggregate deposit of bank increased to Rs 154072 crore at end of
March 2008-09 from Rs 142381 crore as at the end of March 2007-08 and
increased to Rs. 186893 crore in 2009-10. The growth rate of 8.86%
during 2008-09 was lower than growth rate of 21.90% in previous year and
21.30% in 2009-10. during the year the bank consciously brought down the
high cost of deposit level in order to reduce the cost of deposit and this
resulted in lower growth rate.
Profit
The operating profit increased during year 2008-09 Rs2912 crore to
2009-10 Rs 2959 crore and Rs 3964 crore in 2010-11. The net profit
increased during year 2008-09 Rs 1421 crore to 2009-10 Rs 1565 crore and
Rs2072 crore in 2010-11. Return on assets improved from 0.98% in 2008-09
to 0.92% in 2009-10 to 1.09% in 2010-11. Earnings per share was 34.65 and
increased to 38.17 in 2009-10 and increased to 50.55 in 2010-11.
Income
The total income of the bank came to Rs12816 crore in 2008-09 Rs
16414 crore in 2009-10 and rs 19430 crore in 2010-11 and growth rate 28%
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CANARA BANK
in 2009-10 and 18% in 2010-11 interest income. To Rs 3324.01 in 2008-09,
Rs 3817-35 in 2009-10 and Rs 4100.78 crore in 2010-11. Other income
increased by 1450.95 in 2008-09, Rs 2212.87 in 2009-10 and Rs 2311.21
crore in 2010-11. Total income as against 18% in the previous year.
Expenses
The total expenditure increased from 9903 crore in 2008-09 to 13434
crore in 2008-09 Rs. 15467 crore in 2009-10 and 17476 crore in 2010-
2011.
HIRERARCHY OF ORGANIZATION OF BANK
(BRANCH LEVEL)
BRANCH MANAGER
DEPUTY MANAGER
ASSIST MANGER
SPECIAL ASST
AWARD STAFF
SUB STAFF
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CANARA BANK
LENDING PATTERNS
Government sponsored schemes
The Government of India has also sponsored various loan schemes with a
view to help poor people for rural department etc. These schemes are offered
through many financial institutions, commercial banks of the country to play
major role in this regard.
Under this scheme, every bank branches will be given an area which it has to
provide financial assistance through various schemes for that area which is
known as service area approach. The various schemes sponsored by Govt.
are.
Canara Bank is the front-runner in implementing various Government
Sponsored Schemes aimed to uplift poor, educated un-employed / under-
employed people in rural / semi-urban / urban areas by providing financial
assistance to set up self-employment ventures with the help of various
government authorities / agencies.
The following are the prominent schemes:
Swarna Jayanthi Shahari Rozgar Yojana
Swarna jayanthi Gram Swarozgar Yojana
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CANARA BANK
A. Swarna Jayanthi Shahari Rozgar Yojana (SJSRY)
Purpose Assistance to individuals under Urban Self Employment Programme (USEP) for setting up of gainful self-employment ventures & Development of Women & Children in Urban Areas (DWCUA).
Eligibility BPL Applicants residing in urban/semi-urban towns for at least 3 years. Any bankable project/activity involving a project cost of upto Rs 50000 for individuals. For DWCUA no ceiling on project cost.
Margin 5% of the project cost Quantum of Loan
95% of project cost
Security Hypothecation/Mortgage/Pledge of assets created out of loan Activities Any bankable activity / project which can be undertaken at
towns.Project Cost
Rs.50,000/- under USEP. In respect of DWCUA, no ceiling on project cost.
Subsidy Individuals - 15% of the Project cost (Max-Rs. 7500)DWCUA group - 50% of the Project cost (Max-Rs.1.25lakh)
Repayment
Within 3 to 7 years
Sponsoring Authority
Urban Local Bodies
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B. Swarnajayanthi Gram Swarozgar Yojana (SGSY)
Purpose For setting up self employment ventures in rural areas Eligibility All families in rural areas who find a plakhe in the list of
below poverty line identified through BPL census duly approved by Gram Sabha are eligible for assistance under the scheme.
Margin Loans upto Rs.50,000/- for individuals & Loans upto Rs. 6.25 lakh for Groups - No margin Loans above Rs.50,000/- for individuals - 20% of the project cost minus the actual subsidy available Loans above Rs. 6.25 lakhs for Groups - 25% of project cost minus actual subsidy
Security Loans upto Rs. 50000 for individuals & loans upto Rs. 5 lakh for Groups - Hypothecation of assets created out of loan / mortgage of landed property / third party guarantee Above Rs.50,000/- in case of individuals and Rs.5 lakhs in case of SHGs - Hypothecation of assets created out of loan & mortgage of landed property/guarantee of third party.
Activities Key activities identified by Gram Sabha including farm sector
Project Cost: Unit cost as fixed by District SGSY CommitteeSubsidy 30% of the project cost with a ceiling of Rs.7500/-. For
SC/ST 50% of the project cost with a ceiling of Rs.10000. For groups, 50% of the project cost subject to ceiling of Rs.1.25 lakhs.
Repayment Within 5 to 9 Years Sponsoring Authority
Block Development Officer
OTHER TYPES OF LOANS AND ADVANCE
1. Cash credit
2. Over draft
3. Demand loan
4. Term loan
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1. Cash credit:
Cash credit is favourite mode of borrowing by traders, industries,
agriculturists etc for meeting their working capital requirements. It is a
separate at by itself and doesn't require the opinion of a current account, It is
operated like an overdraft account. Depending on needs of the business the
borrowers can draw cash credit at different types and as and when he gets
funds in hand. He may deposit them in his Alc.
The debit balance should not exceed agreed limit. Interest is charged on the
daily balance in the account. The securities usually accepted in cash credit.
A/c or commercial commodities, stock in trade and machinery's.
The cash credit arrangement is the past popular method of borrowing in
India above 70% of the total bank credit is in the form of cash credit
2. Overdraft:
An old implies the existence of current AIc an old is generally
allowed by a prior arrangements with the bank. The latter agreeing to allow
the customer to overdraw the A/c i.e. draw in excess of his credit balance up
to a particular limit. The balances in AIc fluctuate according to amount of
debts and credits. A cheque book is issued to the customer and cheques
drawn by him up to an agreed limit at honored by bank unlike loans, as
many drawings and repayments are permitted as the customer. A borrower
whose requirements various from time to time are in a position to adjust the
operation on the accounts accordingly and may not withdraw the entire
amount at one time. The securities usually accepted against an overdraft are
shares and government promissory notes. Some times old are granted
against fixed deposits and LI policies.
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Types of overdraft
1. Cash key
2. ATM facility
3. TOD Cash Key
1.Cash key: It is one of the old facility carry a key to a immediate cash
requirement An individual will be granted 75% of loan against his deposit
2. Automated Teller Machine:
This is another type of overdraft. Here banks will issue credit card to
customer, credit card holder need not carry cash
3. Temporary overdraft:
Current A/c holders are permitted to overdraw their A/c by small
amount. This facility is given only to reliable customers. But amount should
be repaid within short period.
3. Demand Loan:
Demand Loan is an advance for a fixed amount repayable on demand.
In case of demand loans interest is applied quarterly. The loan is granted
after obtaining demand promissory note. The demand promissory note has
government 3 years time. After this period loan is considered to be barred
one. Demand loan is sanctioned against banks own deposits i.e. FD, RD, JD
etc. The amount of demand loan IS Granted will be 75% of the deposit
amount and Interest is 2.5% above the interest applicable to fixed deposits.
Types of demand loan:
a. Gold loan (Already explained)
b. Clean demand loan
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Clean demand loan:
This is another type of demand loan, here loan is granted without any
security. Here loan is granted by personal guarantee. This is suitable for
secured persons and pensioners who had their A/c with the bank
4. Term loan:
When a loan is sanctioned to borrower. The entire amount of loan is
debited to a loan. AIC of the borrower, and it is paid to borrower in one
lump sum. A loan is generally granted for a short period of one year or less
than one year. Some times it may be more than one year such a loan is called
term loan. Here there will be three types of loans, i.e. Medium term Short
term, and Long term loan
A loan is granted either against collateral securities or against personal
security of the borrower. Interest is charged on whole amount of loan
sanctioned. Irrespective of amount actually withdrawn by borrower rate of
Interest charged is lower than overdraft and cash credit.
Types of Schemes Under Term Loans
1. Education loan
2. Housing loan
3. Happy home scheme
4. Abilasha scheme
This scheme is helpful to rural people for the purpose of consumer
durables
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Agriculture :
Our economy is agro based. The country greatly depends upon the
contribution from sector both in terms of output as well as potential source
of employment India is a nation of village 95% of our village population is
depending on agriculture for their bread. Agriculture is the main occupation
for Indians formers in India are poor. They are in need of financial
assistance commercial banks provides finance to them.
TYPES OF AGRICULTURAL FINANCE
According to financial requirement of Indian formers loan can be
classified into 3 types.
1. Short term credit
2. Medium term credit
3. Long term credit
Short term credit for a period of 12 to 15 months it is need for
purchase of seeds, fertilizers and payment of wages to form workers and for
domestic expenses, medium term credit for a period of 15 months to 5 years.
It is needed for the purpose of buying cattle and agricultural implements
construction of bunds and embankments on agricultural lands and for
making other miner improvements on lands.
Long term credit for a period of 5 to 20 years is needed for making
permanent improvements in lands. Such as digging of wells, installation of
pump sets, purchase of farm machines, acquisition of additional lands and
also for the repayment of overdraft debts.
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CANARA BANK
FINANCE IN COMMERCIAL BANKS
In the past commercial bank played an insignificant role in
agricultural finance. They met just 5.5% of credit requirements of the
agriculturists. However after the nationalization of major common banks
country. The commercial banks have been participating Agricultural finance
to a grater extent. They are opened thousands of branches in rural areas and
through their rural branches, they are financed a considerable portion of
credit needs of the farmers Today they finance about 39% of the total
requirements of the rural people com banks participate in agricultural
finance in many ways They are.
1. They provide direct finance to farmers; they prove, short, medium and
long term finance to them.
2. They have helped in the organization of farmers service societies is a
few selected centers.
3. They have also introduced a village adoption schemes under which
they have adopted thousands of village and provide finance
4. They are also participating is lead bank scheme
5. They also providing indirect finance to farmers
AGRICULTURAL CREDIT OFFERED BY BANKS:
1. Period wise classification
2. Purpose wise classification
3. Nature wise classification
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CANARA BANK
1. PERIOD WISE CLASSIFICATION
a. Short term credit -12 to 15 months
b. Medium term credit -15 months to 5 year
c. Long term credit - 5 to 15 years
II. PURPOSE WISE CLASSIFICATION:
a. Short term loan:
Purchase of fertilizers, such verticals, hybrid seeds, plough etc.
b. Medium term loan:
Purpose of installation of tube wells. It purchase of pump sets,
reclamation of land wells construction etc.
c. Long term loan:
Purchase of land digging wells, installation of pump sets, machineries
etc.
Agricultural finance of Banks (in crores)
Year Amount
2008-09 15521
2009-10 17996
2010-11 20144
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AGRICULTURE AND RURAL CREDIT SCHEMES
A. Kisan Credit Card
Canara Bank is the pioneer in implementing Credit Card Scheme for
farmers.
Purpose For meeting the cultivation needs of farmers and other short term requirements including those of subsidiary / allied activities and consumption needs.
Eligibility Individual farmers / joint borrowers / partnership firms/ private & public Ltd. companies who are owner cultivators / engaged in allied / subsidiary activities. Farmers who are cultivating authorized leased lands are also eligible. The farmer should not be a defaulter of any Financial Institution.
B. Loans for Agri clinics / Agri business Centres
For Strengthening Transfer of Technology and Extension Services in
field of Agriculture
Purpose For providing expert services and advice to farmers on cropping practices, technology dissemination, crop protection from pests and diseases, market trends and prices of various crops in the market, clinical services for animal health.
Eligibility Graduates in Agriculture / Horticulture / Animal Husbandry / Forestry / Dairy / Veterinary / Poultry Farming / Pisciculture-Individuals / Joint / Firms / limited companies.
Limit For individuals : Rs.10 lakhsFor groups / partnership firms : Rs.50 lakhs
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CANARA BANK
C. Minor Irrigation / Pump set Loans
Purpose For purchase of electrical motors, oil engines, submersible irrigation pumpsets, for energisation of agricultural pumpsets, pipelines including installation charges, installing generator sets, solar pumpsets, installation of drip ./ sprinkler irrigation systems, fertilizer mixers.
Eligibility Owner cultivators with minimum 2 acres of land. Loans can be considered for less than 2 acres area provided, viability of the project is ensured.
D. Farm Machinery Loans
For Strengthening Transfer of Technology and Extension Services in field of
Agriculture
Purpose For purchase of tractors, power tillers, trailers, comine harvester, grain threshers, sprayers, dusters, ploughs, drills, mechanical wereders or any other modern agricultural machinery.
Eligibility Farmers who satisfy the Bank's norms.
E. Farm Development Loans
Purpose For digging / deepening of wells, construction of tanks, ponds, drilling of bore wells, soil and water conservation watershed development bundling land reclamation, leveling of land, terracing, conversion of dry land into wet, irrigable lands, fencing, construction of farm houses and other allied activities.
Eligibility Farmer should be owner of the land
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CANARA BANK
F. Vehicle Loan for Agriculturists
Purpose For purchase of brand new vehicles such as bicycles, mopeds, two wheeler / three wheeler carriages, jeeps, vans and other light motor vehicles for supervising agricultural operation / management of farm / estate and for transportation of agricultural produce / inputs, vehicles may also be considered.Purchase of heavy vehicles such as lorries for big farmers owning at least 15 acres of perennially irrigated land.
Eligibility Agriculurist cultivating his own land or engaged in allied activities such as dairy, poultry, sericulture, fish farming, etc.
G. Loan for Plantation Crops
Purpose For establishment of estates, clearing of jungle, conversion of barren land into cultivable land, purchase of planting material, rejuvenation / replanting.
Eligibility Owners of the land who have experience / knowledge in the proposed activity.
H. Kisan Suvidha
Purpose For meeting the comprehensive credit needs of farmers. Working capital requirements: for crop cultivation expenses, working capital requirements for allied activities, maintenance of farm machinery/ equipments, non-farm sector activities and consumption needs. Term loans requirements like purchase of agricultural implements, land development, purchase of bullocks and carts, purchase of farm machinery, minor irrigation.
Eligibility Agriculturists can avail finance for working capital requirements either under KCCS (Kisan credit Card Scheme) or under Kisan Suvidha scheme and not under both the schemes.
29
CANARA BANK
I. Canara Kisan OD
Purpose To provide a hassle-free overdraft facility for working capital expenses of agriculturists to be incurred for allied activities, repairs and replakhements of farm machinery, working capital requirements or/and for non-farm sector activities and consumption needs, subject to ceiling for each type of expense.The account can also be operated by ATM card (if facility is available in the branch) or cheque leaves.
Eligibility Agriculturists having satisfactory repayment record for the past 1 year.The Scheme is operational only in select branches of the Bank.
J. General Credit Card Scheme (GCCS)
Objective General Credit Card Scheme has been introduced as an important measure in the area of Financial Inclusion. To provide hassle free credit to Rural and Semi-urban households without insistence on security, purpose or end use of the credit.
Purpose Loan can be sanctioned for any general purpose including that of consumption.
Eligibility Norms
All Rural / Semi-urban households are eligible irrespective of their activity, whether agricultural or non agricultural and income level.
Loan Quantum
Loan quantum shall be 50 % of the net annual income of the entire household. Maximum of Rs. 25000/-.
Margin No margin shall be insisted Tenability Limit extended is of overdraft nature tenable for three
yearsSecurity No security is insisted. No co-obligation / third party
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CANARA BANK
guarantee
K. Krishi Mitra Card Scheme
Objective To provide easy credit to Individual Tenant Farmers, Oral Lessees, Share Croppers and farmers cultivating lands without proper records.
Purpose Cultivation of Crops Maintenance of animals and farm machinery Repairs and replakhements of machineries Replakhement of animals
Loan Quantum
Maximum of Rs. 50,000/- subject to Scale of Finance and a maximum of 50% of the value of the produce.
Tenability Extended either as an operative limit with a tenability of 3 years (subject to annual review) or as a single transaction limit, repayable in 5 years in quarterly / half yearly / yearly installments.
Security Hypothecation of Crops.
L. Financing Joint Liability Groups of Tenant Farmers
Objective General Credit Card Scheme has been introduced as an important measure in the area of Financial Inclusion.
Purpose Cultivation of Crops based on the details of the crops raised by the JLG members
Loan Quantum
Maximum of Rs. 50,000/- per farmer and Rs. 5,00,000/- per group.
Repayment Linked to marketing of crops - not to exceed 12 months for short duration crops and 18 months for long duration crops.
M. Kisan Tatkal (only in select states)
Objective To provide credit for meeting the post harvest expenses of the farmers who have availed KCCS Loans
Purpose To meet the expenditure towards storing, processing, treatment of food grains, godown charges, etc
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CANARA BANK
Loan Quantum
Minimum of Rs. 1,000/- Maximum of Rs. 50,000/- but not to exceed 50% of KCCS Limit / 25% of annual income
Repayment In 3-5 years in half yearly / annual installments.Security Collateral of Securities extended to KCCS Loans.
N. Scheme for Redemption of Debts of Farmers from Non-Institutional
Sources
Objective To provide relief to farmers and remove the debt burden from non-institutional sources.
Purpose To prepay the debts availed by the farmer from non institutional sources
Loan Quantum
Maximum of Rs. 50,000/- subject to 150% of the Gross Annual Income
Repayment Within 5 years – in quarterly / half yearly / yearly installments.
Security Mortgage of Property, if the cumulative loans exceed Rs. 65,000/-
O. Gold Loans for Agricultural Purposes
Objective To provide loans to farmers for various agricultural purposes against the pledge of gold Jewelleries
Purpose To meet all farm requirement of the farmersLoan Quantum
Maximum of Rs. 3,00,000/- subject to 80% of the appraised value or per gram limit specified from time to time.
Repayment Within 12 months Security Pledge fo gold Jewelleries
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CANARA BANK
EDUCATION LOAN AND OTHER PRIORITY SECTOR LOANSA. Loans for Students
Purpose: Payment of course fees.Purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tours, passage expenses (for studies abroad)
Eligible Courses :
Studies in India:Graduation, Post-graduation including technical / professional courses with employment potential conducted by colleges / Universities approved by UGC / Govt./AICTE/Department of Electronics / IMC, autonomous institutions like IIT,IIM etc.
Studies abroad:
Job oriented, technical / professional courses- (graduation / post graduation
Quantum of Finance:
Need based finance For studies in India : Max. Rs.10.00 lakhs For studies in abroad : Max. Rs.20.00 lakhs
Margin Upto to Rs.4.00 lakhs – NilAbove Rs.4.00 lakhs – for studies in India – 5%studies abroad : 15%
Security: Loan is given jointly to the student and parent /guardianAssignment of future income of the student Upto Rs.4.00 lakhs- No securityAbove Rs.4.00 lakhs upto Rs. 7.50 lakhs –Satisfactory third party guarantee(Note: If the proposed borrower prefers to offer collateral security of tangible assets (moveable or immoveable) instead of bringing collateral securities in the form of third party guarantee, the same may be accepted, at his request, provided the securities with stipulated margin covers 100% of the loan amount).Above Rs. 7.50 lakhs: Collateral security equal to 100% of the loan amount.
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CANARA BANK
Repayment Commences two years after completion of the course or six months after getting employment, whichever is earlier.Loan with interest is repayable in equated monthly instalments within 5 to 7 years. Credit DeliveryLoan can be availed from the branch nearest to the plakhe of permanent residence of the parent / guardian.
B. Laghu Udyami Credit Card Scheme(LUCC)
Objective LUCC Scheme is devised to provide hassle free financial
support to small business units, retail traders, artisans,
village industries, SSIs and tiny units, P & SE and small
entrepreneurs.
Purpose To meet Working capital requirement of small business
units, retail traders, artisans, village industries, SSIs.
Eligibility All existing small borrowers of above mentioned
categories enjoying aggregate loan / limit of upto Rs 10
lakhs are eligible Borrowers should have satisfactory
dealings with the bank for atleast for the last 3
years.borrowers with continuous satisfactory past dealings
for a minimum period of 3 years but not having any
liability right now can also be issued the card.
C. Loan for Retail Traders
Purpose For meeting the working capital/term-loan requirements. Eligibility Retail Traders dealing in essential commodities (fair price
shops), consumer co-operative stores and private retail traders with credit limit not exceeding Rs. 20 lakhs.
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CANARA BANK
D. Loan for Solar Water Heating Systems
Purpose For meeting the working capital requirementsEligibility Individuals, Institutions, Associations, Small Business
establishments, Industrial establishments, Hospitals, Hotels, Hatcheries, SMEs etc.. Salaried individuals should have minimum monthly net take home salary of 25% of their gross salary OR Rs. 2000/- (after meeting the loan instalment) whichever is more. Professionals and other non-salaried class should have a minimum net yearly income of Rs. 50000/-.
E. Direct Financing to Self Help Groups
Purpose -To build mutual trust and confidence betweren the
bankers and rural poor through formation of Self Help
Groups
- To encourage banking activity both in thrift and credit
operations.
- Credit Assistance to the Group on the extent of Savings
mobilised, which varies from 1:1 to 1:4.
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CANARA BANK
LEGAL ASPECTS OF ADVANCES
ADVANCES TO COMPANIES:
1) The memorandum of the company shows the registered office of the
company. The objective etc, which the bank is presumed to be aware
of before dealing with the company
2) Articles of association of the company shows the internal
management of the company. The composition of capital, drawing
powers, and the administrative heads of the company etc.
3) Unless a certificate of commencement of business is issued a public It.
Company cannot start working. Banks shall ensure this.
4) Resolutions a company being a legal entity. Separate form the
members (share holder) who constitute its functions through
resolutions passed according to an articles of association.
5) Only those persons officials of the company who are duly authorized
either by articles of association or special ordinary resolutions shall
execute the documents the liability of the share holders is usually
limited.
6) Before financing the liquidity rate capital advances ratio; fund flow
statements, balance sheets for a period of time etc, are considered
more particularly because the liability of the share holders is usually
limited
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CANARA BANK
7) Any transaction ultra wires the memorandum of association is valid
and un-enforceable
8) Under section 100 of companies act, special resolution as per articles
of association is required for reduction of share capital and the same
shall be confirmed by the board
9) While financing the bank should obtain the fullest of correct
documents duly filled up, duly stamped with seal, duly executed and
delivered (sec 48)
10) The charge on the asses of the company shall be registered with
register of companies failure to do so within 30 days, (sec125) renders
the charge void as against liquidator or other registered creditors. The
delay can be condoned by the registrar companies
ADVANCES TO FIRMS:
1) Partnership deed en-unciate the relationship of partners interest and
their liability to third parties. Governments In regard to signing
powers Profit sharing, capital ratio whether any minor is admitted for
benefits, etc have to be persued before dealing with a firm liability of
partners is joint and several (sec 25)
2) The duly authorized partners shall execute the documents else, the
other partners are; not liable unless it is in the ordinary course of
business or duly ratified. Preferably, all partners, shall sign the papers
to most effectively pledge mortgage or charge the properties of a firm.
3) Account may be operated by all or any of the partners and a clear
mandate shall be filled contravention deprives the bank of its
protection.
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CANARA BANK
4) In the absence of any provision sin the deed, the provisions of Indian
partnership act apply.
5) Registration, though not compulsory, is preferable otherwise, a firm
cannot sue and dispute interest cannot be challenged in court of law.
6) Extract from the registrar of firms shows the names and addresses of
all the partners and the bank shall obtain documents from all of them
7) Entire set of relevant documents shall be obtained signed by all our
authorized partners
8) It is to be ensured that there is not impersonation or largely, (usually,
lady partners signatures on forms are obtained by male partners at
their homes)
ADVANCES TO SOCIETIES:
1) An unregistered society is nothing more than a group of persons. Only
a registered society attains a separate entity, then it can be used
2) Notice under section 126 of co-operative societies act 60 days is a
condition precedent for filing a suit
3) The bye laws of the society have to be carefully reckoned, the
constitution of the society gives the objectives.
4) If the society is affiliated to any parent body, the constitution and the
sue law of the latter are very important.
5) The resolution authorizing borrowings or operations on the account
shall be scrutinized and followed
6) Full set of correct documents, shall be obtained
7) Personal liability of some of the office bearers is preferred
TYPES OF SECURITIES
1) Immovable properties like house properties plots of land, lease holds
are the most common
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CANARA BANK
2) Amongst movable, shares insurance policies debentures, book debts,
bank deposits, stock In trade etc, are a few examples.
3) Whereas, an immovable property mortgaged, the movable are pledged
or hypothecated.
4) In the case of companies all are charged by way of floating charge
MORTGAGES
1) A mortgage is the transfer of an interest in a specific immovable
property for the purpose of securing the payment of money advanced
or to be advanced by way of loan an existing or future debt, or the
performance of engagement which may give rise to a pecuniary
liability sec 59 TP Act
2) In a simple mortgage, possession it is not delivered by the mortgages,
there is only a personal liability, failing which mortgaged can proceed,
against the mortgaged property.
3) The mortgage sells his property to the mortgage in a mortgage by
conditional sale subject to a condition on the failure to repay within
the stipulated time, the sale becomes absolute.
4) Mortgagor delivers the possession of the mortgaged property in favor
of mortgages by way of unsatisfactory mortgages The rents accruing
are appropriated towards part payment of principal or interest or both.
5) In a deed of English mortgaged, the mortgagor sells the property to
the mortgage, but subject to a provision that the latter will retransfer
on payment.
6) In the notified towns, mortgage. Is effected by deposit of title deeds
with a covering letter. The intention of the mortgagor and delivery of
title deeds are important.
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CANARA BANK
7) Any mortgage which is not so, is an anomalous mortgage
8) Under section 7 of TP Act any person competent to contract can
transfer properly. Therefore, a minor insolvent, insane, idiot, Foreign
Sovereign and Ambassador; alien enemy; felon, drunkard cannot
execute a mortgage deed.
9) A mortgage by a company should be duly authorized by resolution
according to the Articles of Association and transaction should not be
ultra wires the Memorandum of Association. The charge thus created
shall be registered with the Registrar of Companies.
10) Mortgage affected by the promoters of a company before its
incorporation is invalid. It cannot be ratified after incorporation
because the principle was not in existence at the time of the
transaction by an agent.
11) A default, the mortgages, is entitled to file a suit for Foreclosure or a
suit for sale as per the terms in the Mortgage Deed Banks being
financial institutions do file only suits for sale and for money.
PLEDGE:
1. Pledge is a kind of bailment were an asset is delivered as security for
the repayment of a debt
2. The possession is delivered by the borrow in favour of the Bank (e.g
lock and key, Mandy type)
3. When the goods are pledged with the bank, it can sell them after
giving reasonable notice to the borrower or sue for the amount and
retain the pledged goods as collateral security (Section 176 Indian
Contract Act)
HYPOTHECATION:
1. Hypothecation is an equitable charge created on the goods
40
CANARA BANK
2. The actual physical possession is with the borrower, but the
constructive possession is with the Bank
3. Under the hypothecation deed, the bank is entitled to take actual
Possession
4. On the banker obtains actual possession he has all the rights of Pledge
PLEDGE V/S HYPOTHECATION
1. In pledge the goods are under the lock and key of the bank, while in
hypothecation the borrower has possession of the goods, till the bank
regains it.
2. Actual delivery of the goods is some qua non in pledge, m
hypothecation the constructive delivery is in favors of the bank
3. In both the cases, the bank has the right to sell and sue for balance or
sue for money and keep the goods as collateral security.
4. In both the cases, the bank has the right to sell and sue for balance for
sue for money and keep the goods as collateral security
LIEN:
Banks enjoy the right of a general lien (Sec 171 Indian contract Act)
until all the outstanding are cleared, the bank can retain any valuable
securities, documents etc. The bank gets as right to sell them.
ASSIGNMENT
Section 1390 of TP. Act the borrower can assign an LIC. Policy etc, in
favors of the bank. All actionable claims can be assigned.
THE RESIGNATION ACT
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CANARA BANK
1. Sec. 17 of the Act, enunciates that any transaction it immovable
property worth more than Rs. 100/- shall be done by way of Resisted
document.
12. Sec. 49 lay down that, if the document is not registered; it shall not
a. Affect any immovable property comprised therein
b. Conform any power to adopt and
c. Be received in evidence
3. Registered Documents are conclusive and take effect against
unregistered documents
4. All registered documents are presumed to be duly executed
THE LIMITATION ACT
1. Limitations start running from the date the cause of action arises e,g
execution of DP note.
2. While computing the period of limitation, certain period are excluded,
a. Time taken for obtaining certified copies
b. Time in legal proceedings (Sec 12)
c. Time in pauper OP's
d. Time spent in wrong courts
e. Period of stay or injunction
f. Time for obtaining consent/sanction of Government; and g. Period
of defendants absence from India (Sec. 15)
3. Any admission of debt by borrower gives rise to fresh limitations.
The admission may be by
a. Part payment.
b. Letter admitting the debt; and
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CANARA BANK
c. Filling of debtors insolvency petition incorporating banks debt in
the schedule
4. Period of Limitation:
a. Money suit 3 years
b. Mortgage suit for Sale or foreclosure 12 years
c. Suit for declaration 3 years
d. Suit for redemption 30 years
e. Suit for foreclosure 30 years
f. For possession (Adverse possession) 12 years (Art. 65)
g. For execution of decree 12 years
THE INDIAN STAMP ACT
1. The instrument not duly stamped and inadmissible in evidence
2. Such documents can be impounded or a penalty can be imposed
3. In case of doubt, the collector can decide the eligible stamp duty on an
instrument
4. In certain cases the officer can instead of impounding, require duly
stamped receipt to the substituted thereof
5. If an instrument is not stamped but required to be stamped, it can be
received in evidence on payment of penalty
6. Only non judicial stamp papers are to be used
CHARGING INTEREST
The Bank cannot charge excessive, exorbitant or usurious rates of
interest. The usurious loans act empowers a court to reopen the transaction
and fix a reasonable rate of interest.
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CANARA BANK
ANALYSIS AND INTERPRETATION
1. Chart showing distribution of respondents on the basis of their gender.
graph showing number of respondents on basis of gender
malefemale
Figure 1
44
Gender MALE FEMALE TOTAL
NUMBER 30 20 50
PERCENTAGE 60 40 100
CANARA BANK
ANALYSIS: In the above table we can see number of male respondents is
more compared to female.
INTERPRETATION: in the above table we can see that there are 30male
respondent and 20 female respondents.
2.Table showing distribution of respondents on the basis of their age group.
Age Male Female Total Percentage
Below 20 07 01 08 16%
20-40 12 03 15 30%
40-60 20 03 23 46%
60 & above 03 01 04 8%
Graph showing distribution of respondents on the basis of their age
group
BELOW 20 20-40 40-60 60 AND ABOVE
16
30
46
8
Age group
Figure 2
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CANARA BANK
ANALYSIS: From above chart we can conclude that response from age
group between 40 to 60 is reasonable.
INTERPRETATION: From the above chart we can say that respondent
below 20 age group are 8 ,the respondent 20-40 age group are 15
respondents ,the age group of 40-60 respondents are 23 and age group of
above 60 respondent are 8
3. Table showing distribution of respondents on the basis of their
Occupation.
OCCUPATION RESPONDENTS PERCENTAGEBusiness 6 12%Profession 5 10%Employee 22 44%Student 2 4%Others 15 30%Total 50 100%
Graph showing distribution of respondents on the basis of their Occupation
business employee profession student others0
5
10
15
20
25
30
35
40
45
Figure 3
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CANARA BANK
ANALYSIS: Majority of the respondents are employee.
INTERPRETATION: In the survey conducted 6 respondents are business, 5 profession, 22 employee, 2 student and 15 others out of 50 respondents.
4.Table showing classification of respondents on the basis of their annual Income.
ANNUAL INCOME NUMBER OF RESPONDENTS PERCENTAGE
Upto 1,00,000 0 0%
1,00,000-3,00,000 1 2%
3,00,000- 5,00,000 27 54%
Above 5,00,000 22 44%
Total 50 100%
Graph showing classification of respondents on the basis of their annual
Income
upti 1,00,000 1,00,000-3,00,000
3,00,000-5,00,000
above 5,00,0000
102030405060
0 2
54 44
Series1
Figure 4
47
CANARA BANK
ANALYSIS: out of 50 respondents income group between 3,00,000-5,00,000
has shown positive response .
INTERPRETATION:The number of respondents of annual income between
1 lakh to 3 lakh is 1,3 lakh to 5 lakh is27, above 5 lakh is 22 respondents.
5.Table showing different types of deposits account of respondents:
NUMBER OF RESPONDENTS PERCENTAGE
S/B ACCOUNT 33 66%
CURRENT ACCOUNT 10 20%
TERM DEPOSIT 7 14%
TOTAL 50 100%
.
Graph showing different types of deposits account of respondents
savings accountcurrent accountterm deposit
Figure 5
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CANARA BANK
ANALYSIS: majority of the respondents have savings account
INTERPRETATION: From the above chart we can conclude that 33 people
have savings account and that is majority among 50 respondents and 10
people have current account and 7 people have term deposit
6.The Table showing different types of loans borrowed by the respondents.
Types of Loans Number of respondents Percentage
Cash Credit 05 10%
Overdraft 05 10%
House loan 10 20%
Vehicle loan 10 20%
Education loan 2 4%
Personal loan 5 10%
Loan against gold 5 10%
Mortgage loan 8 16%
Total 50 100%
Graph showing different types of loans borrowed by the respondents
Cash Cred
it
Overd
raft
House loan
Vehicle
loan
Educati
on loan
Personal
loan
Loan
again
st go
ld
Mortgag
e loan
0%
5%
10%
15%
20%
25%
Figure 6
ANALYSIS:Majority of them have taken house loan and vehicle loan
49
CANARA BANK
INTERPRETATION :from the above table we can see that out of 50
respondents 10 respondent have taken house loan,10 respondents have taken
vehicles loan,8 respondents have taken mortgage loan ,and other loans are
comparatively less.
7.Table showing general opinion of the respondents towards the loan
procedure.
Opinion Number of respondents Percentage
Simple 23 46%
Not so difficult 17 34%
Difficult 10 20%
Total 50 100%
.Graph showing general opinion of the respondents towards the loan
procedure.
Simple Not so difficult Difficult0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Series1
Figure 7
ANALYSIS: Majority of the respondents opinioned that the procedure followed by bank is simple.
50
CANARA BANK
INTERPRETATION: Out of 50 respondents procedure followed is simple according to 23 respondents ,not so difficult according to 17 members difficult for 10 respondents
8. table showing how respondents came to know about the loan
Number of respondents PercentageAdvertisement 10 20Friends 15 30Relatives 15 30Others 10 20Total 50 100
Graph showing how respondents came to know about the loan
Advertisement Friends Relatives Others0
5
10
15
20
25
30
Figure 8
Analysis-from above chart we can conclude that respondents have optioned bmore for relatives and friends.
INTERPRETATION:out of 50 respondents 10 members have come to know about the loan through advertisement,15 through friends,15 through relatives and 10 from others.
51
CANARA BANK
9.table showing interested offered by bank.
OPINIONS NUMBER OF RESPONDENTS PERCE0NTAGE
Attractive 12 24
Satisfactory 12 24
Not-Satisfactory 5 10
Reasonable 15 30
Affordable 6 12
Total 50 100%
Graph showing
Attractive Satisfactory Not-Satisfactory Reasonable affordable0
5
10
15
20
25
30
Series1
Figure 9
ANALYSIS: From the above table we can conclude that more number of
respondent says that interest offered by bank is attractive, reasonable,
satisfactory and other respondent are says its unsatisfactory
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CANARA BANK
INTERPRETATION: From the above table out of 50 respondent 12
respondent are attractive, 12 respondent are satisfactory,5 says not
satisfactory,15 respondent say its reasonable,6 are affordable.
10.Table showing the opinion of respondents regarding new schemes or
improvement of loans.
OPINION NUMBER OF RESPONDENTS PERCENTAGEYes 28 56%No 22 44%Total 50 100%
Yes
No
0%
10%
20%
30%
40%
50%
60%
56%
44%
Series1
ANALYSIS:The above table shows that the majority of respondents prefer new schemes
or improvement of existing loans. Therefore, it is advisable for the bank to
take necessary steps.
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CANARA BANK
INTERPRETATION : Out of 50 respondents 28 respondents expect new
schemes or improvement of existing loans,22 don’t expect new schemes.
11.The Table showing the opinion of the respondents towards the service of
the bank.
Opinion Number of respondents PercentageExcellent 8 16%Good 20 40%Satisfactory 18 36%Not satisfactory 4 8%
50 100%
graph showing the opinion of the respondents towards the service of the
bank.
Excellent Good Satisfactory Not satisfactory0%
5%
10%
15%
20%
25%
30%
35%
40%
Figure 11
ANALYSIS : from above table we can conclude that major response were
good and satisfactory.
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CANARA BANK
INTERPRETATION: Service provided by bank according to 8 respondents
is excellent, for 20 respondents its good, for 18 respondents its
satisfactory,4 not satisfactory.
FINDINGS, SUGGESTIONS AND CONCLUSION
Findings
During the survey it has been observed that customers complied
number of problems while availing service from bank. They have
complained about many of problems some of them have been out lined
below.
1. Loan takers are more between the age group of 40-60
2. According to the survey most of the loan takers are employee.
3. Majority of the People who have annual income between 3
lakh to 5 lakh have taken loan.
4. Majority of the undertaken survey have savings account.
5. Its been found that procedure followed in sanctioning loans is
simple.
6. Majority of them have taken house loan and vehicle loan.
7. Most of the respondents expect new loan scheme.
8. People have come to know about the loan much through friends
and relatives so its been found that advertisement is not so
effective.
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CANARA BANK
Suggestions
Following effective suggestions are given in order to help the branch
in improving their customer service and their performance.
1. Rate of interest should be increased;
The rate of interest charges on deposits of customers should be
increased; customers are not satisfied with rate of interest on deposit. Bank
should have necessary steps to increase interest. Because many middle –
class people when they get money. They used to keep it in bank in order go
get interest. It bank does not provide high rate of interest then they will keep
amount in some other banks. Banker should consider this suggestion for
their improvement.
2. Guidance has to be provided
Banker or staff member should provide proper guidance to customer
about the bank’s new schemes borrowing polices lending policies. It is duty
of bank to make acquaint the customer about its operations. Banker should
encourage customers to get the benefit of new policies adopted by bank.
4. Encashment of cheque:
Now customers are facing the problem of delay in payment of cheque.
Time is very previous. Some of customer may not have sufficient time to
wait for long period so delay in payment should be reduced and avoided.
Quick service should be provided by ban for the reason bank may open
another cash counter. Bank should adopt above suggestion to improve their
customer service
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CANARA BANK
6. Loan sanctioning:
If customer need the financial assistance i.e. loan from bank He can
get it immediately. But he can get it from money lenders. But they charge
high rate of interest. So banker has to sanction loan to customers as early as
possible. It should not be delayed. So loan has to be sanction or given within
short period from the date of his application for loan.
8. Interest on Loan has to be reduced:
During the survey the some of customers told that the rate of interest
is high. So banker should reduce the interest rate of loans sanctioned to
customers and it is advised to bank to get some amount of income from
other sources.
9. Effective advertisement:
The banker should take necessary steps to advertise. The bank's new
schemes and help customers to get their benefit it customers do not know
about new schemes. These schemes will become useless schemes. So it is
banker's responsibility to give information to customers or encourage them
to invest fund in these schemes where customer can get maximum benefit.
10. Punctuality and co-operational of staff:
Punctuality of staff should be increased staff always should be
punctuality to their works. Then only it results in high profits.
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CANARA BANK
And there should be proper co-operation in customers and staff
member. It helps the customers in dealing with bank. So co-operation in
staff and customer is very essential management should take necessary steps
for improving punctuality of staff and increasing co-operation betweren
them
Banker should also take necessary steps to provide other effective services
which we can get in any other international banks. So that banker can attract
large number of customers and can make more profit and banker should take
necessary steps to provide any service to customers without delay. That
means banks should provide quick services.
So it is advised to bank to get benefit from above mentioned
suggestions and improve themselves to provide better service to their
customers
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CANARA BANK
CONCLUSION
Banking business has been an individual part of economy in general
and business particular. As a matter of fact com banking has widened its
services from traditional area to a number of sophisticated areas like housing
finance. Infrastructure finance, merchant banking etc. Whatever may be the
area, banks can flourish only when their activities are customer oriented. In
order to achieve hundred percent customer orientation. They should be
aware of customer demands, likes, aspirations etc, further they should know
the extent to which their points have been achieved. Therefore there should
be continuous
Research programmers showing the performance to be achieved.
Problem in present strategies of lending collection etc that’s why the
research forms the basis of development The present study deals with the
activities of banks in general and activities of CANARA BANK
BHADRAVATHI branch in particular. The analysis had been made in
connection with the perceptions of customers who have borrowed loans
from the branch. Further it shows. The problem and inconveniences faced by
tem while availing of services. Suggestions have been given for improving
the strategy of in connection with lending and other services. If the bank
gives a positive considerations to the suggestions given in the report. I am
sure it may improve its strategy
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CANARA BANK
QUESTIONNAIRE
I am KISHEN KUMAR, pursuing sixth semester BBM in PESIAMS college Shimoga, as a part my academic I am doing a project work on “lending pattern of canara bank” in Bhadravati. I request you to provide information for my project. I assure you that the data used only for my project work.
1. Name : ………………………………………………………..
2. Address: …………………………………………………………….
………………………………………………………………………
3. Sex: Male [ ] Female [ ]
4. Age: Below 20 [ ] 20-40 [ ]
40-60 [ ] 60&above [ ]
5. Occupation:
Business [ ] Employee [ ] Profession [ ]
Students [ ] Others [ ]
6. Annual Income:
Up to Rs. 1,00,000 [ ] 2,00,000 – 3,00,000 [ ]
3,00,000-5, 00,000 [ ] Above 5, 00,000 [ ]
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7. Which type of deposit you’re having in CANARA BANK:
S/B Account [ ] Current A/C [ ] Term Deposit [ ]
8. Which type of loan you taken from bank
Cash Credit [ ] Overdraft [ ] Vehicles loan [ ]
Education [ ] House loan [ ] Personal loan [ ]
Agriculture loan [ ] Mortgage loan [ ] Loan against gold [ ]
9. How did you came to know about the loan facility
Advertisement [ ] Friends [ ]
Relatives [ ] Others [ ]
10. Interest offered by bank is:
Attractive [ ] Satisfactory [ ] Not-Satisfactory [ ]
Reasonable [ ] Affordable [ ]
11. Procedure followed by the bank in sanctioning of loans:
Simple [ ] Not so difficult [ ] Difficult [ ]
Time consuming [ ]
12. What is your opinion about the service provided by the bank?
Excellent [ ] Good [ ]
Satisfactory [ ] Not Satisfactory [ ]
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CANARA BANK
13. Any suggestions you would like to give for improvement of credit
……………………………………………………………………………
……………………………………………………………………………
Date:
Place: Signature
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CANARA BANK
BIBLIOGRAPHY
1. Banking Therapy and practice
B.S. Raman
2. Annual report of 2011-2012
3 . Encyclopedia
4. Websites
i. www.google.com
ii. www.canara.com
iii.money control.com
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