sip report (sbi).m.r.pipaliya
TRANSCRIPT
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PROJECT REPORT
ON
“SCOPE OF AGRICULTURE INVESTMENT
CREDIT IN AMRELI DISTRICT”
NAME OF THE ORGANISATION
STATE BANK OF INDIA
SUBMITTED TO
GUJARAT TECHNOLOGICAL UNIVERSITY
In Partial Fulfillment of the Requirements for MBA
(YEAR: 2015-17)
PREPARED BY:
MEHUL R. PIPALIYA
ENROL NO.157680592122
GUIDED BY:
Dr. MAYUR SHAH Mr. J. C. Meena
(Faculty of CPIMR) AGM Region office Amreli
SHREE CHIMANBHAI PATEL INSTITUTE OF
MANGEMENT & RESEARCH
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PREFACE
The M.B.A. Program is a Structured and Integrated Course of Business Studies. The main
objective of practical training at M.B.A. level is to develop skill in student by supplement to the
theoretical study of business management in general. Industrial training helps to gain real life
knowledge about the industrial environment and business practice. The M.B.A. program
provides student with a fundamental knowledge of business and organizational functions and
activities, as well as an exposure to strategic thinking of management.
In every professional course, training is an important factor. Professors give us theoretical
knowledge of various subjects in the college but I am practically ex-posed of such subjects when
I get the training in the organization. It is the only training through which I come to know that
what an industry is and how it works. I can learn about various departmental operations being
performed in the industry, which would, return, help me in the future when I will enter the
practical field.
Training is an integral part of M.B.A. and each and every student has to undergo the training for
45 days in a company and then prepares a project on the same after the completion of the
training. During this whole training I got a lot of experience and came to know about the
management practices in real that how it differs from those of theoretical knowledge.
The project report is accompanied with practical experience to add some
worthiness to education. This practical training in M.B.A program develops core
competencies of business world. Thus, we have a practical outlook of the
managerial experts and witness the function of management in real business.
My work in this project is, therefore, a humble attempt towards this end.
In spite of my best efforts, there may be errors of omissions and commissions,
which may please be excused.
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ACKNOWLEGDEMENT
A Project Report is an assessment of one’s great skill & aptitude. One needs to
devote in immense patience, time and brain for the compilation of one such
rewarding outcome of true efforts.
I would like to render my sincere heartfelt gratitude to my Project Mentor Prof.Dr.
MAYUR SHAH for his immense encouragement and guidance for completion of
this report. He has been an inspirational mentor guiding me through every step of
my project, thus making my learning process very valuable for me.
Finally, I express my sincere gratitude to Mr. J C MEENA for their invaluable
guidance, suggestions and encouragement in this Endeavour.
I am highly indebted to our professors who taught us the different aspects of
management.
At last, I express my sincere thanks to all the respondents for their cooperation and
to all those who have directly or indirectly contributed in this research project.
Yours faithfully,
Mehul R Pipaliya
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DECLARATION
I, the undersigned pipaliya mehul r, student of M.B.A. hereby declare that the project work
presented in this report on SCOPE OF AGRICULTURE INVESTMENT CREDIT IN
AMRELI DISTRICT is my own work and submitted by me to SHREE CHIMANBHAI
PATEL INSTITUTE OF MANAGEMENT & RESEARCH towards the partial fulfillment of
the M.B.A. programme.
This project is entirely outcome of my own efforts and the report prepared there is based on the
knowledge and the work done by me in the organization during the project work.
I further declare that to the best of my knowledge, to any other university or institute for any
examination, this report is not submitted by anyone else.
DATE:-
PLACE:- (PIPALIYA MEHUL R)
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EXECUTIVE SUMMARY
I have done my summer internship project at State Bank of India, region office, Amreli. State
Bank of India is one of the largest bank in India & one of the leading PSU and a Fortune 500
company, with an appreciable global presence. The name of my project is Scope of Agriculture
Investment Credit in Amreli District. The research project is mainly aimed at finding out the
Scope of Investment in Credit.
The agriculture investment credit provides by the bank to farmers for batter farming and farmers
are earn more money.
The scope of this study is related to the existing customers of the bank. The nature of the study
is qualitative as well as quantitative. The data is collected primarily by preparing a questionnaire
& talking to the farmers directly. On the basis of the data collected, the observations, analysis,
suggestions are found out.
During the project, I was fortunate to experience and encountered different situations which
would help in future career. I learned about how the organizations work and a little about the
organizational culture. Overall, it was an enriching experience.
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TABLE OF CONTENT
Ch. No Title Page no.
1 Introduction to banking sector
1.1 Banking Overview 10
1.2 Types of Bank 11
2 Introduction of an organization
2.1 Overview of the organization 14
2.2 Vision, mission, aim & objective 15
2.3 History 16
2.4 Operations 18
2.5 Logo & slogan 20
2.6 Functions 23
2.7 Products & services 24
2.8 Structure & organization 25
2.9 Awards & recognition 26
3 Introduction of the topic
3.1 introduction 28
3.2 Tractor loan 29
3.3 Dairy farming 31
3.4 Minor-irrigation 32
3.5 Godown loan 33
4 Literature review 34
5 Research methodology
5.1 Problem statement 38
5.2 Research objective 38
5.3 Research design 38
5.4 Sampling Method 38
5.5 Source of Data 38
5.6 Limitations of the Study 38
6 Data analysis
6.1 Tractor Loan analysis 40
6.2 Dairy Loan analysis 54
6.3 Minor-irrigation loan analysis 67
6.4 Godown loan analysis 81
7 Findings
Findings 95
8 Conclusion & Recommendation
Conclusion and Recommendation 97
9 Bibliography
Bibliography 99
10 Annexure
Annexure 101
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CH-1 INTRODUCTION TO
BANKING SECTOR
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1.1 BANKING OVERVIEW
Banking in India in the modern sense originated in the last decades of the 18th century. Among
the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in
1829-32; and the General Bank of India, established 1786 but failed in 1791.
The largest bank, and the oldest still in existence, is the State Bank of India. It originated as the
Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of
the three banks funded by a presidency government, the other two were the Bank of Bombay and
the Bank of Madras. The three banks were merged in 1921 to form the Imperial Bank of India,
which upon India's independence, became the State Bank of India in 1955. For many years the
presidency banks had acted as quasi-central banks, as did their successors, until the Reserve
Bank of India was established in 1935, under the Reserve Bank of India Act, 1934.
The Indian banking sector is broadly classified into scheduled banks and non-scheduled banks.
The scheduled banks are those which are included under the 2nd Schedule of the Reserve Bank
of India Act, 1934. The scheduled banks are further classified into: nationalized banks; State
Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian
private sector banks. The term commercial banks refer to both scheduled and non-scheduled
commercial banks which are regulated under the Banking Regulation Act, 1949.
Nationalization in the 1960s
Despite the provisions, control and regulations of the Reserve Bank of India, banks in India
except the State Bank of India (SBI), continued to be owned and operated by private persons. By
the 1960s, the Indian banking industry had become an important tool to facilitate the
development of the Indian economy. At the same time, it had emerged as a large employer, and a
debate had ensued about the nationalization of the banking industry. Indira Gandhi, the then
Prime Minister of India, expressed the intention of the Government of India in the annual
conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank
Nationalization."The meeting received the paper with enthusiasm.
Thereafter, her move was swift and sudden. The Government of India issued an ordinance
('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969') and
nationalized the 14 largest commercial banks with effect from the midnight of 19 July 1969.
These banks contained 85 percent of bank deposits in the country. Jayaprakash Narayan, a
national leader of India, described the step as a "masterstroke of political sagacity." Within two
weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition
and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The stated
reason for the nationalization was to give the government more control of credit delivery. With
the second dose of nationalization, the Government of India controlled around 91% of the
banking business of India. Later on, in the year 1993, the government merged New Bank of India
with Punjab National Bank. It was the only merger between nationalized banks and resulted in
the reduction of the number of nationalized banks from 20 to 19.
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1.2 TYPES OF BANKS
The banking industry can be divided into following sectors, based on the clientele served and
products and services offered:
1. Retail Banks
2. Commercial banks
3. Cooperative banks
4. Investment Banks
5. Specialized banks
6. Central banks
Retail Banks:
Retail banks provide basic banking services to individual consumers. Examples include savings
banks, savings and loan associations, and recurring and fixed deposits. Products and services
include safe deposit boxes, checking and savings accounting, certificates of deposit (CDs),
mortgages, personal, consumer and car loans.
Commercial Banks:
Banking means accepting deposits of money from the public for the purpose of lending or
investment. Commercial Banks provide financial services to businesses, including credit and
debit cards, bank accounts, deposits and loans, and secured and unsecured loans. Due to
deregulation, commercial banks are also competing more with investment banks in money
market operations, bond underwriting, and financial advisory work. Commercial banks in
modern capitalist societies act as financial intermediaries, raising funds from depositors and
lending the same funds to borrowers. There are two types of commercial banks, public sector and
private sector banks.
Public Sector Banks:
Public sectors banks are those in which the government has a major stake and they usually need
to emphasize on social objectives than on profitability.
Private sector banks:
Private sector banks are owned, managed and controlled by private promoters and they are free
to operate as per market force
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Investment Banks:
An investment bank is a financial institution that assists individuals, corporations and
governments in raising capital by underwriting and/or acting as the client's agent in the issuance
of securities. An investment bank may also assist companies involved in mergers and
acquisitions, and provide ancillary services such as market making, trading of derivatives, fixed
income instruments, foreign exchange, commodities, and equity securities.
Cooperative Banks:
Cooperative Banks are governed by the provisions of State Cooperative Societies Act and meant
essentially for providing cheap credit to their members. It is an important source of rural credit
i.e., agricultural financing in India.
Specialized Banks:
Specialized banks are foreign exchange banks, industrial banks, development banks, export-
import banks catering to specific needs of these unique activities. These banks provide financial
aid to industries, heavy turnkey projects and foreign trade.
Central Banks:
Central banks are bankers’ banks, and these banks trace their history from the Bank of England.
They guarantee stable monetary and financial policy from country to country and play an
important role in the economy of the country. Typical functions include implementing monetary
policy, managing foreign exchange and gold reserves, making decisions regarding official
interest rates, acting as banker to the government and other banks, and regulating and supervising
the banking industry.
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CH:2 INTRODUCTION OF
THE ORGANIZATION
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2.1 OVERVIEW
STATE BANK OF INDIA
State Bank of India is an Indian multinational, Public Sector banking and financial services
company. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra.
As of December 2013, it had assets of US$388 billion and 17,000 branches, including 190
foreign offices, making it the largest banking and financial services company in India by assets.
State Bank of India is one of the Big Four banks of India, along with Bank of Baroda, Punjab
National Bank and ICICI Bank.
The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding,
in 1806, of the Bank of Calcutta, making it the oldest commercial bank in the Indian
Subcontinent. Bank of Madras merged into the other two "presidency banks" in British India,
Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn
became the State Bank of India. Government of India owned the Imperial Bank of India in 1955,
with Reserve Bank of India (India's Central Bank) taking a 60% stake, and renamed it the State
Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.
State Bank of India is a regional banking behemoth and has 20% market share in deposits and
loans among Indian commercial banks.
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2.2
VISION STATEMENT
“Creating Value for All through Responsible, Reliable and Resourceful Partnership.”
MISSION STATEMENT
“To make the Company the Financial Partner of Choice. We seek to delight customers through
our innovative product offerings and world class servicing standards , enabling them to make
informed choices using State-of- the-Art execution capabilities that provide trusted market
access. We rejoice in our workforce and strive to provide an enriching workplace where value is
generated for all”.
AIM
The aim of SBI & Loan is to award services for the growth and development of businesses &
establishment and hence the development of the nation. Therefore, the website is committed to
extend support for Business, Investment & Loan.
OBJECTIVE The objectives have been put forward considering the most reliable and efficient activities in the
field of Consultancy and Outsourcing with highly skilled personnel along with their tremendous
efforts toward excellence in quality management has always been appreciated by Corporate
houses, Statutory bodies and Private parties.
However, the objectives has been categorized and stated, considering the various phases of
works in an enterprise, in the following manner for better understanding.
Pre Operational Period
Commissioning Period
Operational Period.
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2.3 HISTORY
Seal of Imperial Bank of India.
The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank of
Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal
was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15
April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks
were incorporated as joint stock companies and were the result of royal charters. These three
banks received the exclusive right to issue paper currency till 1861 when, with the Paper
Currency Act, the right was taken over by the Government of India. The Presidency banks
amalgamated on 27 January 1921, and the re-organized banking entity took as its name Imperial
Bank of India. The Imperial Bank of India remained a joint stock company but without
Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1
July 1955, the Imperial Bank of India became the State Bank of India. In 2008, the Government
of India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of
interest because the RBI is the country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made SBI
subsidiaries of eight that had belonged to princely states prior to their nationalization and
operational take-over between September 1959 and October 1960, which made eight state banks
associates of SBI. This acquisition was in tune with the first Five Year Plan, which prioritized
the development of rural India. The government integrated these banks into the State Bank of
India system to expand its rural outreach. In 1963 SBI merged State Bank of Jaipur (est. 1943)
and State Bank of Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI
acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of
Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishna ram
Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of
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Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender,
owned by the Maharaja. The new bank's first manager was Jall N. Broacha, a Parsi.
In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the
acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in
Kerala.
There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and
streamline the group's operations.
The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra
merged with SBI, reducing the number of associate state banks from seven to six. Then on 19
June 2009 the SBI board approved the absorption of State Bank of Indore. SBI holds 98.3% in
State Bank of Indore. (Individuals who held the shares prior to its takeover by the government
hold the balance of 1.7 %.)
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets will inch very close to the ₹10
trillion marks (10 billion long scales). The total assets of SBI and the State Bank of Indore stood
at ₹9,981,190 million as of March 2009. The process of merging of State Bank of Indore was
completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26
August 2010.
On October 7, 2013, Arundhati Bhattacharya became the first woman to be appointed
Chairperson of the bank.
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2.4 OPERATIONS
SBI provides a range of banking products through its network of branches in India and overseas,
including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal
Offices that are located at important cities throughout India.
Domestic presence
SBI has nearly 16000 branches in India presently, of which 9,851 (66%) were in Rural and Semi-
urban areas. In the financial year 2012-13, its revenue was INR 200,560 Crores (US$36.9
billion), out of which domestic operations contributed to 95.35% of revenue. Similarly, domestic
operations contributed to 88.37% of total profits for the same financial year.
Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government in
August 2014, SBI held 11,300 camps and opened over 30 lakhs accounts by September, which
included 21.16 lakh accounts in rural areas and 8.8 lakh accounts in urban areas.
International presence
The Israeli branch of the State Bank of India located in Ramat Gan.
As of 28 June 2013, the bank had 190 overseas offices spread over 36 countries. It has branches
of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg,
London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and
Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative
offices in Bhutan and Cape Town.
The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches,
four in the Toronto area and three in the Vancouver area.
SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank:
State Bank of India (Mauritius). SBI (Mauritius) has 15 branches in major cities/towns of the
country including Rodrigues.SBI Sri Lanka now has three branches located in Colombo, Kandy
and Jaffna. The Jaffna branch was opened on 9 September 2013. SBI Sri Lanka, the oldest bank
in Sri Lanka, celebrated its 150th year in Sri Lanka on 1 July 2014.
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Associated Banks
SBI now has five associate banks, down from the eight that it originally acquired in 1959. All
use the State Bank of India logo, which is a blue circle, and all use the "State Bank of" name,
followed by the regional headquarters' name:
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
The State Bank of India and all its associate banks are identified by the same blue keyhole logo.
The State Bank of India word mark usually has one standard typeface, but also utilizes other
typefaces.
State Bank of India Mumbai ABU. Main Branch of SBI in Mumbai.
Non-banking subsidiaries
Apart from its five associate banks, SBI also has the following non-banking subsidiaries:
SBI Capital Markets Ltd
SBI Funds Management Pvt Ltd
SBI Factors & Commercial Services Pvt Ltd
SBI Cards& Payments Services Pvt. Ltd. (SBICPSL)
SBI DFHI Ltd
SBI Life Insurance Company Limited
SBI General Insurance
In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the
remaining capital), to form a joint venture life insurance company named SBI Life Insurance
company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its
headquarters in Mumbai.
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2.5 LOGO & SLOGAN
This was the first logo of State Bank of India when it was founded on July 1st, 1955. The
Banyan Tree in the logo says that the bank has strong roots and is capable of propagating and
growing in all directions. Later this logo was abandoned as it invited criticism that a Banyan tree
does not let any other plant grow within its space.
This is the current logo of the State Bank of India. This was designed by ShekharKamat, NID
Ahmadabad. This logo was released on October 1st, 1971, on the day of inauguration of the SBI
Central Office building at Back-bay Reclamation, Bombay.
This logo is open to several interpretations. Here are some of them,
1) The big circular form of the emblem suggests unity and completeness. The small circle in the
center connotes that despite the bank’s size, it is the small man who holds the center of the bank.
2) The small circle and the vertical line with the blue background suggests a keyhole — the
symbol of safety, security and strength.
3) The small white circle in the center is like a stone thrown in a pond, and symbolizes that once
a deposit is made with the State Bank, it has a ripple effect and the deposit grows and grows on
its own leading to prosperity and happiness in life.
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4) The white circle in the center denotes a State Bank of India Branch, the narrow line denotes
nar33row lanes of towns and the cities. In other words, a State Bank branch will be there to serve
you, wherever you go.
The logo came from National Institute of Design (NID), Ahmedabad and it was inspired by
Kankaria Lake, Ahmedabad.
Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A BANK
OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE NATION BANKS
ON US"
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Employees
SBI is one of the largest employers in the country having 222,033 employees as on 31 March
2014, out of which there were 45,132 female employees (20%) and 2,610 (1%) employees with
disabilities. On the same date, SBI had 42,744 Schedule Caste (19%) and 17,243 Schedule Tribe
(8%) employees. The percentage of Officers, Assistants and Sub-staff was 36%, 46% and 18%
respectively on the same date Hiring drive: 1,776 Assistants and 1,394 Officers joined the Bank
in FY 2013-14, for expansion of the branch network and to mitigate staff shortage, particularly at
rural and semi-urban branches. Staff productivity: As per its Annual Report for FY 2013-14, each
employee contributed net profit of INR 4.85 lakhs
Major competitors
Some of the major competitors for SBI in the banking sector are:
Axis Bank
ICICI Bank
HDFC Bank
Punjab National Bank
Bank of Baroda
IndusInd Bank
Canara Bank
Bank of India
Union Bank of India.
However, in terms of average market share, SBI is by far the largest player in the market.
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2.6 FUNCTIONS
What is the main Functions of State Bank of India?
The functions of SBI can be grouped under two categories, viz., the Central Banking functions
and ordinary banking functions.
A. Central Banking Functions:
The SBI acts as agent of the RBI at the places where the RBI has no branch. Accordingly, it
renders the following functions:
(a) Banker to the government
(b) Banker to banks in a limited way
(c) Maintenance of currency chest
(d) Acts as clearing house
(e) Renders promotional functions
B. General Banking Functions
Besides the above specialized functions, the SBI renders the following functions:
1. Accepting deposits from the public under current, savings, fixed and recurring deposit
accounts.
2. Advancing and lending money and opening cash credits upon the security of stocks, securities,
etc.
3. Drawing, accepting, discounting, buying and selling of bills of exchange and other negotiable
instruments.
4. Investing funds, in specified kinds of securities.
5. Advancing and lending money to court of wards with the previous approval of State
Government.
6. Issuing and circulating letters of credit.
7. Offering remittance facilities such as, demand drafts, mail transfers telegraphic transfers, etc.
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2.7PRODUCTS AND SERVICES
Personal Banking
SBI Term Deposits SBI Loan For Pensioners
SBI Recurring Deposits Loan Against Mortgage Of Property
SBI Housing Loan Loan Against Shares & Debentures
SBI Car Loan Rent Plus Scheme
SBI Educational Loan Medi-Plus Scheme
Other Services
Agriculture/Rural Banking
NRI Services
ATM Services
Demat Services
Corporate Banking
Internet Banking
Mobile Banking
International Banking
Safe Deposit Locker
E-Pay
E-Rail
SBI Vishwa Yatra Foreign Travel Card
Broking Services
Gift Cheques
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2.8 ORGANIZATION & STRUCTURE
The Banks Corporate Office is located at Mumbai. Its domestic operational area is divided into
14 Circles, each with one Local Head Office and a few Zonal and Regional Offices. The Bank is
present not just in the major metropolises of India but has wide reach in the villages of India. The
Bank's top management consists of the Chairman, group executives for National Banking Group,
Corporate Banking Group, International Banking Group and Associates & Subsidiaries, and four
staff functionaries in charge of finance, credit, human resources & technology management and
inspection & audit. Three Strategic Business Units (SBUs) under the Corporate Banking Group
have been set up by SBI to pay attention to big corporate customers. Distinguishing features of
the SBUs are assimilation of operational planning with operations within each SBU, an alert
delivery system with suitable specialist inputs and focused attention on profitability. The staff
and functionaries at various levels have been delegated higher financial powers to ensure quicker
decision making in credit areas and disposal of a large number of credit proposals at operating
units' level. A committee approach has been adopted, both at the apex and circle levels, for
sanction of large advances and loans. Keeping this in mind Central Office Credit Committee and
Circle Credit Committees have been set up to ultimately ensure faster delivery. Credit and
systemic risk processes have thus accordingly been restructured. Simplified and concise credit
appraisal formats have been designed to ensure improvement in the quality of credit decisions,
better quality of assets and reduction of Non Performing Assessors NPAs.
Branches of SBI
SBI has 21000 ATMs.
SBI has 26500 branches, inclusive of branches that belong to its Associate banks.
SBI alone has 18500 branches.
SBI is the only bank consisting 26% participation in public sector banks and 39% participation in
commercial banks in India.
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2.9 AWARDS & RECOGNITION
SBI was ranked 73rd largest bank in the world, according to 2014 SNL financial data.
SBI won the Best Bank award in the 'ASIA MONEY FX POLL OF POLLS 2014’ for
best overall performance as domestic provider of Forex services over the last 10 years.
SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine
in a 2014 ranking.
SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest
corporations for the year 2012.
SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top
Banks 2013'.
SKOCH Award 2010 for Virtual corporation Category for its e-payment solution
The Bank of the year 2009, India (won the second year in a row) by The Banker
Magazine
Best Bank 2009 by Business India
The Most Trusted Brand 2009 by The Economic Times.
SBI was named the 29th most reputed company in the world according to Forbes 2009
rankings
Most Preferred Bank & Most preferred Home loan provider by CNBC
Technology Bank of the Year by IBA Banking Technology Awards
In the Brand Trust Report 2014, SBI finished as India's 19th Most Trusted Brand in India.
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CH:3 INTRODUCTION OF
THE TOPIC
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3.1 INTRODUCTION
Improving the production capacity of agriculture in developing countries through
productivity increase is an important policy goal where agriculture represents an
important sector in the economy. The agriculture sector provides livelihood directly and
indirectly to a significant portion of the population of all developing countries, especially
in rural areas, where poverty is more pronounced. Thus, growing agricultural sector
contributes to both overall growth and poverty alleviation.
Within the context of growth in food and agriculture, emphasis is places on productivity
because expansion of arable land is very limited in most countries due to physical lack of
suitable land and because of environmental priorities. In addition, the difference between
actual and technically feasible yields for most crops implies great potential for increasing
food and agriculture production through improvements, even within further advanced in
technology.
Any of several credit vehicles used to finance agricultural transactions, including loans,
notes, bills of exchange and bankers acceptance. These types of financing are adapted to
the specific financial needs of farmers, which are determined by planting, harvesting and
marketing cycles.
DEFINITION
Agricultural investment credit is defined as a type of financing used to provide funding
for agricultural producers. This may be In the form of letters of credit, loans or banker’s
acceptance documents. This is generally used to provide investment from outside
resources to the farming sector.
Short-term credit finances operating expenses, intermediate-term credit is used for farm
machinery, and long-term credit is used-estate financing.
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3.2 TRACTOR LOAN
NEW TRACTOR LOAN SCHEME
PURPOSE
Agricultural term loans are sanctioned for purchase of new tractors, accessories and implements.
ELIGIBILITY
Any individual or group of individuals i.e. ,JLGs/SHGs, institution or organization are eligible
for finance which will have sufficient and regular income either from own farm activity or
custom hiring incomes from the tractor proposed to be purchased and its accessories. Borrower
should possess a minimum land holding of 2 Ac.
MARGIN
Minimum of 15%
PRIMARY SECURITY
Hypothecation of tractor & accessories.
INTEREST
12% p.a. for prompt repayment, further concession of interest @1.00% by way incentive will be
extended to the borrower and 0.50% to the tractor dealer. Concession will be extended in the
month of July and will be on the basis of interest recovered between 1st July to 30th June of every
year.
30
REPAYMENT
Loan is repayable in equated monthly installments in 5 years, including grace period of 1 month.
(Relaxed in tune with the regular flow of funds in the hands of the borrower)
Postdated cheques will be obtained from the borrower for the EMI.
EMI per Re 1 lakh Rs 2225
31
3.3 DAIRY LOAN
AGRICULTURE LOAN FOR DAIRY UNITS
PURPOSE
For construction of shed, purchase of milk animals, milking machine, chaff or any other
equipment required for the purpose.
WHO ARE ELIGIBLE?
Individual farmers who are members of the milk procuring societies or located on milk
route.
They should be less than 65 years of age.
Individual dairy unit having less than 10 animal – should own minimum 0.25 acre of land
for every 5 animals for growing fodder and be in a position to procure the balance
requirements locally.
Individual dairy unit having 10 animals and above –should own or lease a minimum of
one acre of land for cultivation of fodder for every 5 animals.
LOAN AMOUNT
100% of the cost for loans upto Rs 100000/
90% of the cost for loan above Rs 100000/ with a maximum of 5 lakhs as term loan.
HOW DO YOU REPAY?
The loan should be repaid in monthly installments over a period of 5 lactations.
32
3.4 MINOR-IRRIGATION LOAN
Water is a scarce natural resource which is crucial for agriculture and other sector
alike. Due to urbanization and population growth, the demand for water is
increasing rapidly from domestic and industrial sectors. Climate change is further
complicating the scenario. Low water use efficiency, poor maintenance of
irrigation system and poor recovery of water charges are some of the major
problems associated with management of water resources. Promotion of micro
irrigation, could lead to improvement in water use efficiency.
The irrigation potential in our country is estimated at 140 million hectares – 58.5
million hectares from major and medium sources and 81.5 million hectares from
minor sources. Ground water provides about 70 percent of irrigation. Presently
over 0.5 million hectares only are under micro irrigation despite wide promotional
thrust. A greater penetration in micro irrigation, water shed management, railway
harvesting and ground water recharge are vital for irrigation need in our country.
PURPOSE
Loan covers various activity like digging of new wells (open/bore wells),
deepening of existing wells, energisation of wells (oil engine/electrical pump
set), laying of pipelines, installing drip/ sprinkler system and lift irrigation
system.
WHO ARE ELIGIBLE?
All farmers having a known source of water available for irrigation purpose are
eligible for the loan.
LOAN AMOUNT
For loan up to Rs 100000/ , 100% of the project cost
For loan above Rs 100000/, 75% to 85% of the project cost will be provided as
loan.
33
3.5 GODOWN
RURAL GODOWN
PURPOSE
This scheme is for creating scientific storage capacity in the rural areas for storing farm produce
,thereby prevent distress sale of produce by the promoting pledge financing and marketing credit.
WHO ARE ELIGIBLE FOR THE LOAN?
Individuals / farmers. Quality cum inputs testing laboratories.
Proprietary and partnership farms’.
Co-operatives, agro-processing, co-operative societies.
Companies
Corporations, agro-industrial corporations.
Agricultural produce marketing committees.
Group of farmers/Growers.
NGOs
Agro-processing corporations.
Self help groups.
Marketing boards etc.
The godown can be constructed / located in any area outside the limits of a municipal
corporation area. Rural godowns located in food parks. Food processing industries are also
eligible.
34
CH:4 LITERATURE
REVIEW
35
Mohan Rakesh(2004) while reviewing performance of agricultural credit in India indicated
that though the overall flow of institutional credit has increased over the years, there are
several gaps in the system like inadequate provision of credit to small and marginal
farmers, paucity of medium and long-term lending, etc. These have major implications for
agricultural development as also the well being of the farming community. He, therefore,
suggested that efforts are required to address and rectify these issues. Satish (2006) the distress in agriculture in punjab. He observed that since the
nationalisation of banks and the green revolution, institutional credit for agriculture has
grown in Punjab. But the growth had not been uniform and in line with the demand for such
credit. Indebtedness has also increased in the state, but a large part of the debt has been for
non-productive purposes. The incidence of suicides in Punjab has not been higher than the
all India average and studies reveal that while indebtedness is indeed one of the major
causes of suicides, it is neither the only cause nor the main one. There is thus no direct
causal relationship between institutional credit, indebtednesdists and suicides in rural Maharashtra, Kale (2011)
found that low productivity, low annual income,
existence of income liability gap, indebtedness and availing of non-institutional credit were
proved as important causes of suicide in Maharashtra.
Recognizing the need for increased institutional credit for agriculture, the Government of
India initiated a series of policy measures since independence of the country. As a result the
institutional credit structure in the country has shown a significant growth both in volume
and complexity over the past few decades. At present there is an extensive banking
infrastructure comprising 33,411 rural and semi urban branches of commercial banks,
14501 branches of Regional Rural Banks, around 12000 branches of District Central
Cooperative Banks and nearly 1,00,000 cooperative credit societies at the village level
which translates into at least one credit outlet for about 5000 rural people or 1000
households. This is remarkable and extensive network. (Puhazhendhi, 2011)
36
Meeker Larry G. and Gray Laura (1987)
In 1983, the public was given its first opportunity to review bank asset quality in the form of
agriculture investment credit information. The purpose of this study is to evaluate that
information. A regression analysis comparing the investment credit statistics with examiner
classifications of assets suggests that the agriculture asset information can be a useful aid in
analyzing the credit quality of banks, particularly when the information is timely.
Toor N.S.(1994)
He stated that recovery of agriculture investment credit through the process of compromise by
direct talks rather than by the lengthy and costly procedure of litigation. He suggested that by
constant monitoring, it is possible to detect, the sticky accounts, the incipient sickness of the
early stages itself and an attempt could be made to review the unit and put it back on the road to
recovery.
PaulPurnendu, Bose, Swapan and Dhalla, Rizwan S.(2011)
In the research paper they attempt to measure the relative efficiency of Indian PSU banks on
overall financial performances. Since, the financial industry in a developing country like India is
undergoing through a very dynamic pace of restructuring, it is imperative for a bank to
continuously monitor their efficiency on agriculture investment credit. Here, To prove
empirically, we propose a framework to measure efficiency of Indian public sector banks.
Debarsh and Sukanya Goyal (2012)
He emphasized on management of agriculture investment credit in the perspective of the public
sector banks in India under strict credit classification norms, use of latest technological platform
based on Core Banking Solution, recovery procedures and other bank specific indicators in the
context of stringent regulatory framework of the RBI. Agriculture credit is an important
parameter in the analysis of financial performance of a bank as it results in decreasing margin
and higher provisioning requirements for doubtful debts. The reduction of credit is necessary to
improve profitability of banks and comply with the capital adequacy norms as per the Basel.
Kavitha. N (2012)
She emphasized on the assessment of agriculture investment credit on profitability its magnitude
and impact. Credit of total advances was in the form of doubtful assets in the past and has an
adverse impact on profitability of all Public Sector Banks affected at very large extent credit
work with other banking and also affect productivity and efficiency of the banking groups.
37
CH:5 RESEARCH
METHODOLOGY
38
5.1 Statement of the Problem
The level of the banking system in India is still too high. It affects the financial standing of the
banks so that it is a heavy burden to the banks. A vigorous effort has to be made by the banks to
strengthen their internal control and risk management systems and to setup early warning signals
for timely detection and action. The problem of agriculture investment credit to invest in which
credit and how to framers improve productivity in help with agriculture credit . This is an area
which requires urgent decision to provide better service to farmers . The absence of a quick and
efficient system of legal redress constitutes an important ‘moral hazard’ in the financial sector, as
it encourages imprudent borrowers.
5.2 Objectives of the study The present study has been designed to achieve the following objectives:
1. To know and study about the agriculture investment credit.
2. To find out the scope of agriculture investment credit in Amreli district.
3. To make appropriate suggestions to investment in which credit.
5.3 Research Design The research design used to carry out this study is descriptive research. The present study is an
analytical study. For this study, primary data and secondary data are collected. The primary data
is collected from the borrowers with the help of questionnaire.
5.4 Sampling Method – convenience sampling method.
Sample size = 400 respondents (100 customers in each credit)
5.5 Source of Data Primary Data. Questionnaire both open-closed ended values.
5.6 Limitations of the Study As my research area is limited to Amreli district only so it cannot be generalized on
a bigger context.
As project being part of my Summer Internship Program, I had tried to give full
justice to analyze the topic in detail.
Also I had to limited time so I was done research to only 4 credits.
39
CH:6 DATA ANALYSIS
40
6.1 TRACTOR LOAN
1. Age of the respondents.
frequency Percent
<21 years 5 5%
21-30 years 10 10%
31-40 years 30 30%
41-50 years 40 40%
>50 years 15 15%
Total 100 100%
Graph-1 depicts that there are 5% of the respondents are with age
group, 10% are with the age group of 21-30 years & 30% are with the
age group of 31-40 years of <21 years & 40% are with the age group 41-
50 years &15% are with the age group of >50 years.
5
10
30
40
15
<21 years
21-30 years
31-40 years
41-50 years
>50 years
41
2 .Education of Respondents.
frequency
Percent
SSC
28
28%
HSC
25 25%
Graduation
15 12%
Post graduation
2 2%
None
30 30%
Total
100 100%
Graph-2 depicts that there are 28% respondents are SSC pass,& 25% are HSC
pass,&15% are respondent graduate & 2% respondents are doing post graduation &30%
respondents are uneducated
28
2515
2
30
SSC
HSC
Graduation
Post Graduation
None
42
3 .Income of respondents.(yearly).
frequency Percent
<100000 20 20%
100000-250000 40 40%
250000-500000 25 25%
>500000 15 15%
Total 100 100%
Graph-3 depicts that there are 20% of the respondents earning <100000/-, 40% of the
respondents earning 100000-250000/-, 25% of the respondents earning 250000-500000/-
& 15% of the respondents earning above 500000/-.
20
40
25
15
<100000
100000-250000
250000-500000
>500000
43
4 .Land holding of customers.
frequency Percent
Owned 86 86%
Leased in 10 10%
Leased out 4 4%
Total 100 100%
Graph-4 depicts that there are 86% respondents have own land & 10% respondents taken
leased in & 4% respondents given leased out.
86
10
4
owned
leased in
leased out
44
5 .Irrigation facility you have?
frequency Percent
Private/ own bore-well 50 50%
Rain/monsoon 20 20%
Canal 10 10%
Pump set 20 20%
Total 100 100%
Graph-5 depicts that there are 50% respondents taken own bore well,& 20% respondents
are depend on rain,& 10% respondents are depend on canal,&20% respondents are taken
pump set.
50
20
10
20
private/own bore-well
rain/monsoon
canal
pump set
45
6 .By what time period you got the loan?
7-14 days
15-30 days
31-45 days
>45 days
10%
30%
40%
20%
Graph-6 depicts that there are 10% respondents who got the loan within 7-14 days, 30%
respondents got the loan within 15-30 days, 40% respondents got the loan within 31-45
days & 20% respondents got the loan above 45 days.
10
30
40
20
7-14 days
15-30 days
31-45 days
>45 days
46
7 .Terms & condition of loan offered by bank?
High satisfied
satisfied
neutral
dissatisfied
High dissatisfied
15%
55%
20%
6%
4%
Graph-7 depicts that there are 15% respondents are high satisfied about terms &
condition offered by bank,& 55% respondents are satisfied,&20% respondents are
neutral,& 6% respondents are dissatisfied,& 4% respondents are high dissatisfied.
15
55
20
64
Highsatisfied
satisfied
neutral
dissatisfied
High dissatisfied
47
8 .How did you find the service provide to you?
Very good
good
Mode rate
bad
Very bad
20%
50%
18%
7%
5%
Graph-8 depicts that there are 5% respondents who found the bank service as very bad,
7% respondents found the bank service as bad, 18% respondents found the bank service
as moderate, 50% respondents found the bank service as good & 20% respondents found
the bank service as very good.
20
50
18
75
very good
good
mode rate
bad
very bad
48
9 .Documentation & procedure formality for availing loans?
High satisfied
satisfied
neutral
dissatisfied
High dissatisfied
18%
60%
12%
6%
4%
Graph-9 depicts that there are 18% respondents who are high satisfied about
documentation & procedure formality for availing loans,& 60% respondents are
satisfied,& 12% respondents neutral,&6% respondents are dissatisfied,&4% respondents
are high dissatisfies.
18
60
12
64
High satisfied
satisfied
neutrol
dissatisfied
High dissatisfied
49
10 .Bank location is significant criterion for taking loan?
High important
important
neutral
unimportant
High unimportant
15%
25%
20%
30%
10%
Graph-10 depicts that there are 15% respondents who are significant criterion for taking
loan was high important,& 25% respondents significant criterion was important,& 20%
respondents significant criterion was neutral,& 30% respondents significant criterion was
unimportant,&10% respondents significant criterion was high unimportant.
15
25
20
30
10
High important
important
neutrol
unimportant
High unimportant
50
11 .Timely & adequate loan availability is significant?
High important
important
neutral
unimportant
High unimportant
50%
20%
15%
10%
5%
Graph-11 depicts that there are 50% respondents who are timely & adequate loan
availability is high important,& 20% respondents are timely & adequate loan availability
is important,& 15% respondents are neutral,& 10% respondents are timely & adequate
loan availability is unimportant,& 5% respondents are timely & adequate loan availability
is high unimportant.
50
20
15
10
5
High important
important
neutral
unimportant
High unimportant
51
12 .Agriculture investment credit is an important input for improving agriculture
productivity & support?
Strongly agree
agree
neutral
disagree
High disagree
60%
20%
12%
5%
3%
Graph-12 depicts that there are 60% respondents who are strongly agree to agriculture
investment credit is an important input for improving agriculture productivity &
support,& 20% respondents are agree,& 12% respondents are neutral,& 5% respondents
are disagree,& 3% respondents are high disagree.
6020
12
5 3
strongly agree
agree
neutral
disagree
strongly disagree
52
13 .Low interest rate on loan plays an important role?
High important
important
neutral
unimportant
High unimportant
70%
15%
10%
4%
1%
Graph-13 depicts that there are 70% respondents who are high important to low interest
rate on loan,& 15% respondents are important to low interest rate on loan,& 10%
respondents are neutral,& 4% respondents are unimportant to low interest rate on loan,&
1% respondents are high unimportant to low interest rate on loan.
70
15
10
4 1
High important
important
neutral
unimportant
high unimportant
53
14 .Quick sanctioning & disbursement of funds is an impact factor?
Strongly agree
agree
neutral
disagree
High disagree
60%
15%
15%
6%
4%
Graph-14 depicts that there are 60% respondents are strongly agree to quick sanctioning
& disbursement of funds is impact factor,& 15% respondents are agree,& 15%
respondents are neutral,& 6% respondents are disagree,& 4% respondents are high
disagree.
6015
15
64
strongly agree
agree
neutral
disagree
strongly disagree
54
6.2 DAIRY LOAN
1 .Age of respondents.
frequency Percent
<21 years 10 10%
21-30 years 30 30%
31-40 years 30 30%
41-50 years 20 20%
>50 years 10 10%
Total 100 100%
Graph-1 depicts that there are 10% of the respondents are with age group of <21 years,
30% are with the age group of 21-30 years & 30% are with the age group of 31-40 years
& 20% are with the age group 41-50 years &10% are with the age group of >50 years.
10
30
30
20
10
<21 years
21-30 years
31-40 years
41-50 years
>50 years
55
2 .Education of respondents.
frequency
Percent
SSC
20
20%
HSC
40 40%
Graduation
25 25%
Post graduation
10 10%
None
5 5%
Total
100 100%
Graph-2 depicts that there are 20% respondents are SSC pass,& 40% are HSC
pass,&25% are respondent graduate & 10% respondents are doing post graduation &5%
respondents are uneducated.
20
40
25
10
5
SSC
HSC
Graduation
Post graduation
None
56
3 .Income of respondents.(yearly)
frequency Percent
<100000 25 25%
100000-250000 38 38%
250000-500000 27 27%
>500000 10 10%
Total 100 100%
Graph-3 depicts that there are 25% of the respondents earning <100000/-, 38% of the
respondents earning 100000-250000/-, 27% of the respondents earning 250000-500000/-
& 10% of the respondents earning above 500000/-.
25
38
27
10
<100000
100000-250000
250000-500000
>500000
57
4 .Land holding of customers.
frequency Percent
Owned 80 80%
Leased in 15 15%
Leased out 5 5%
Total 100 100%
Graph-4 depicts that there are 80% respondents have own land & 15% respondents taken
leased in & 5% respondents given leased out.
80
15
5
owned
leased in
leased out
58
5. By what time period you got the loan?
7-14 days
15-30 days
31-45 days
>45 days
5%
20%
40%
35%
Graph-5 depicts that there are 5% respondents who got the loan within 7-14 days, 20%
respondents got the loan within 15-30 days, 40% respondents got the loan within 31-45
days & 35% respondents got the loan above 45 days.
5
20
40
35
7-14 days
15-30 days
31-45 days
>45 days
59
6. Terms & condition of loan offered by bank?
High satisfied
satisfied
neutral
dissatisfied
High dissatisfied
10%
60%
20%
7%
3%
Graph-6 depicts that there are 10% respondents are high satisfied about terms &
condition offered by bank,& 60% respondents are satisfied,&20% respondents are
neutral,& 7% respondents are dissatisfied,& 3% respondents are high dissatisfied.
10
60
20
73
High satisfied
satisfied
neutral
dissatisfied
high dissatisfied
60
7. How did you find the service provide to you?
Very good
good
Mode rate
bad
Very bad
20%
50%
15%
10%
5%
Graph-7 depicts that there are 5% respondents who found the bank service as very bad,
10% respondents found the bank service as bad, 15% respondents found the bank service
as moderate, 50% respondents found the bank service as good & 20% respondents found
the bank service as very good.
20
50
15
10
5
very good
good
mode rate
bad
very bad
61
8. Documentation & procedure formality for availing loans?
High satisfied
satisfied
neutral
dissatisfied
High dissatisfied
15%
65%
10%
5%
5%
Graph-8 depicts that there are 15% respondents who are high satisfied about
documentation & procedure formality for availing loans,& 65% respondents are
satisfied,& 10% respondents neutral,&5% respondents are dissatisfied,&5% respondents
are high dissatisfies.
15
65
10
55
High satisfied
satisfied
neutral
dissatisfied
High dissatisfied
62
9. Bank location is significant criterion for taking loan?
High important
important
neutral
unimportant
High unimportant
10%
30%
20%
25%
15%
Graph-9 depicts that there are 10% respondents who are significant criterion for taking
loan was high important,& 30% respondents significant criterion was important,& 20%
respondents significant criterion was neutral,& 25% respondents significant criterion was
unimportant,&15% respondents significant criterion was high unimportant.
10
30
20
25
15
High important
important
neutral
unimportant
High unimportant
63
10. Timely & adequate loan availability is significant?
High important
important
neutral
unimportant
High unimportant
55%
25%
15%
3%
2%
Graph-10 depicts that there are 55% respondents who are timely & adequate loan
availability is high important,& 25% respondents are timely & adequate loan availability
is important,& 15% respondents are neutral,& 3% respondents are timely & adequate
loan availability is unimportant,& 2% respondents are timely & adequate loan availability
is high unimportant.
55
25
15
3 2
High important
important
neutral
unimportant
High unimportant
64
11. Agriculture investment credit is an important input for improving agriculture
productivity & support?
Strongly agree
agree
neutral
disagree
High disagree
80%
10%
5%
4%
1%
Graph-11 depicts that there are 80% respondents who are strongly agree to agriculture
investment credit is an important input for improving agriculture productivity &
support,& 10% respondents are agree,& 5% respondents are neutral,& 4% respondents
are disagree,& 1% respondents are high disagree.
80
10
54 1
Strongly agree
agree
neutral
disagree
Strongly disagree
65
12. Low interest rate on loan plays an important role?
High important
important
neutral
unimportant
High unimportant
80%
10%
5%
3%
2%
Graph-12 depicts that there are 80% respondents who are high important to low interest
rate on loan,& 10% respondents are important to low interest rate on loan,& 5%
respondents are neutral,& 3% respondents are unimportant to low interest rate on loan,&
2% respondents are high unimportant to low interest rate on loan.
80
10
53 2
High important
important
neutral
unimportant
High unimportant
66
13. Quick sanctioning & disbursement of funds is an impact factor?
Strongly agree
agree
neutral
disagree
High disagree
70%
15%
10%
4%
1%
Graph-13 depicts that there are 70% respondents are strongly agree to quick sanctioning
& disbursement of funds is impact factor,& 15% respondents are agree,& 10%
respondents are neutral,& 4% respondents are disagree,& 1% respondents are high
disagree.
70
15
10
4 1
Strongly agree
agree
neutral
disagree
Strongly disagree
67
6.3 MINOR-IRRIGATION
1. Age of respondents.
frequency Percent
<21 years 10 10%
21-30 years 20 20%
31-40 years 35 35%
41-50 years 25 25%
>50 years 10 10%
Total 100 100%
Graph-1 depicts that there are 10% of the respondents are with age group of <21 years,
20% are with the age group of 21-30 years & 35% are with the age group of 31-40 years
& 25% are with the age group 41-50 years &10% are with the age group of >50 years.
10
20
35
25
10
<21 years
21-30 years
31-40 years
45-50 years
>50 years
68
2. Education of respondents.
frequency
Percent
SSC
40
40%
HSC
30 30%
Graduation
15 15%
Post graduation
5 5%
None
10 10%
Total
100 100%
Graph-2 depicts that there are 40% respondents are SSC pass,& 30% respondent are
HSC pass,&15% are respondent graduate & 5% respondents are doing post graduation
&10% respondents are uneducated
40
30
15
5
10
SSC
HSC
Graduation
Post graduation
None
69
3. Income of respondents.(yearly)
frequency Percent
<100000 30 30%
100000-250000 40 40%
250000-500000 20 20%
>500000 10 10%
Total 100 100%
Graph-3 depicts that there are 30% of the respondents earning <100000/-, 40% of the
respondents earning 100000-250000/-, 20% of the respondents earning 250000-500000/-
& 10% of the respondents earning above 500000/-.
30
40
20
10
<100000
100000-250000
250000-500000
>500000
70
4. Land holding of customers.
frequency Percent
Owned 50 50%
Leased in 30 30%
Leased out 20 20%
Total 100 100%
Graph-4 depicts that there are 50% respondents have own land & 30% respondents taken
leased in & 20% respondents given leased out.
50
30
20
owned
leased in
leased out
71
5. Irrigation facility you have?
frequency Percent
Private/ own bore-well 70 70%
Rain/monsoon 5 5%
Canal 10 10%
Pump set 15 15%
Total 100 100%
Graph-5 depicts that there are 70% respondents taken own bore well,& 5% respondents
are depend on rain,& 10% respondents are depend on canal,&15% respondents are taken
pump set.
8.23.2
1.4
1.2
Private/own bore-well
rain/monsoon
canal
pump set
72
6. By what time period you got the loan?
7-14 days
15-30 days
31-45 days
>45 days
10%
30%
40%
20%
Graph-6 depicts that there are 10% respondents who got the loan within 7-14 days, 30%
respondents got the loan within 15-30 days, 40% respondents got the loan within 31-45
days & 20% respondents got the loan above 45 days.
10
30
40
20
7-14 days
15-30 days
31-45 days
>45 days
73
7. Terms & condition of loan offered by bank?
High satisfied
satisfied
neutral
dissatisfied
High dissatisfied
15%
60%
20%
3%
2%
Graph-7 depicts that there are 15% respondents are high satisfied about terms &
condition offered by bank,& 60% respondents are satisfied,&20% respondents are
neutral,& 3% respondents are dissatisfied,& 2% respondents are high dissatisfied.
15
60
20
3 2
High satisfied
satisfied
neutral
dissatisfied
High dissatisfied
74
8. How did you find the service provide to you?
Very good
good
Mode rate
bad
Very bad
20%
40%
30%
5%
5%
Graph-8 depicts that there are 5% respondents who found the bank service as very bad,
5% respondents found the bank service as bad, 30% respondents found the bank service
as moderate, 40% respondents found the bank service as good & 20% respondents found
the bank service as very good.
20
40
30
55
Very good
good
mode rate
bad
very bad
75
9. Documentation & procedure formality for availing loans?
High satisfied
satisfied
neutral
dissatisfied
High dissatisfied
10%
50%
30%
7%
3%
Graph-9 depicts that there are 10% respondents who are high satisfied about
documentation & procedure formality for availing loans,& 50% respondents are
satisfied,& 30% respondents neutral,&7% respondents are dissatisfied,&3% respondents
are high dissatisfies.
10
50
30
73
High satisfied
satisfied
neutral
unimportant
High unsatisfied
76
10. Bank location is significant criterion for taking loan?
High important
important
neutral
unimportant
High unimportant
15%
30%
25%
20%
10%
Graph-10 depicts that there are 15% respondents who are significant criterion for taking
loan was high important,& 30% respondents significant criterion was important,& 25%
respondents significant criterion was neutral,& 20% respondents significant criterion was
unimportant,&10% respondents significant criterion was high unimportant.
15
30
25
20
10
High important
important
neutral
unimportant
High unimportant
77
11. Timely & adequate loan availability is significant?
High important
important
neutral
unimportant
High unimportant
30%
40%
20%
7%
3%
Graph-11 depicts that there are 30% respondents who are timely & adequate loan
availability is high important,& 40% respondents are timely & adequate loan availability
is important,& 20% respondents are neutral,& 7% respondents are timely & adequate
loan availability is unimportant,& 3% respondents are timely & adequate loan availability
is high unimportant.
30
40
20
73
High important
important
neutral
unimportant
High unimportant
78
12. Agriculture investment credit is an important input for improving agriculture
productivity & support?
Strongly agree
agree
neutral
disagree
High disagree
77%
10%
13%
0%
0%
Graph-12 depicts that there are 77% respondents who are strongly agree to agriculture
investment credit is an important input for improving agriculture productivity &
support,& 10% respondents are agree,& 13% respondents are neutral,& 0% respondents
are disagree,& 0% respondents are high disagree.
77
10
13
0 0
Strongly agree
agree
neutral
disagree
Strongly disagree
79
13. Low interest rate on loan plays an important role?
High important
important
neutral
unimportant
High unimportant
70%
20%
5%
5%
0%
Graph-13 depicts that there are 70% respondents who are high important to low interest
rate on loan,& 20% respondents are important to low interest rate on loan,& 5%
respondents are neutral,& 5% respondents are unimportant to low interest rate on loan,&
0% respondents are high unimportant to low interest rate on loan.
70
20
55
0
High important
important
neutral
unimportant
High unimportant
80
14. Quick sanctioning & disbursement of funds is an impact factor?
Strongly agree
agree
neutral
disagree
High disagree
67%
13%
15%
4%
1%
Graph-14 depicts that there are 67% respondents are strongly agree to quick sanctioning
& disbursement of funds is impact factor,& 13% respondents are agree,& 15%
respondents are neutral,& 4% respondents are disagree,& 1% respondents are high
disagree.
67
13
15
4 1
Strongly agree
agree
neutral
disagree
Strongly disagree
81
6.4 GODOWN LOAN
1. Age of respondents.
frequency Percent
<21 years 5 5%
21-30 years 17 17%
31-40 years 20 20%
41-50 years 40 40%
>50 years 18 18%
Total 100 100%
Graph-1 depicts that there are 5% of the respondents are with age group of <21 years,
17% are with the age group of 21-30 years & 20% are with the age group of 31-40 years
& 40% are with the age group 41-50 years &18% are with the age group of >50 years.
5
17
20
40
18
<21 years
21-30 years
31-40 years
41-50 years
>50 years
82
2. Education of respondents.
frequency
Percent
SSC
12
12%
HSC
18 18%
Graduation
10 10%
Post graduation
1 1%
None
54 54%
Total
100 100%
Graph-2 depicts that there are 12% respondents are SSC pass,& 18% respondent are
HSC pass,&10% are respondent graduate & 1% respondents are doing post graduation
&54% respondents are uneducated
12
18
10
1
54
SSC
HSC
Graduation
Post graduation
None
83
3. Income of respondents.(yearly)
frequency Percent
<100000 10 10%
100000-250000 20 20%
250000-500000 40 40%
>500000 30 30%
Total 100 100%
Graph-3 depicts that there are 10% of the respondents earning <100000/-, 20% of the
respondents earning 100000-250000/-, 40% of the respondents earning 250000-500000/-
& 30% of the respondents earning above 500000/-.
10
20
40
30
<100000
100000-250000
250000-500000
>500000
84
4. Land holding of customers.
frequency Percent
Owned 100 100%
Leased in 0 0%
Leased out 0 0%
Total 100 100%
Graph-4 depicts that there are 100% respondents have own land & 0% respondents taken
leased in & 0% respondents given leased out.
100
00
owned
leased in
leased out
85
5. By what time period you got the loan?
7-14 days
15-30 days
31-45 days
>45 days
5%
10%
40%
45%
Graph-5 depicts that there are 5% respondents who got the loan within 7-14 days, 10%
respondents got the loan within 15-30 days, 40% respondents got the loan within 31-45
days & 45% respondents got the loan above 45 days.
8.23.2
1.4
1.2
7-14 days
15-30 days
31-45 days
>45 days
86
6. Terms & condition of loan offered by bank?
High satisfied
satisfied
neutral
dissatisfied
High dissatisfied
10%
60%
22%
5%
3%
Graph-6 depicts that there are 10% respondents are high satisfied about terms &
condition offered by bank,& 60% respondents are satisfied,&22% respondents are
neutral,& 5% respondents are dissatisfied,& 3% respondents are high dissatisfied.
10
60
22
5 3
High satisfied
satisfied
neutral
dissatisfied
high dissatisfied
87
7. How did you find the service provide to you?
Very good
good
Mode rate
bad
Very bad
20%
50%
22%
3%
5%
Graph-7 depicts that there are 5% respondents who found the bank service as very bad,
3% respondents found the bank service as bad, 22% respondents found the bank service
as moderate, 50% respondents found the bank service as good & 20% respondents found
the bank service as very good.
20
50
22
35
Very good
good
mode rate
bad
very bad
88
8. Documentation & procedure formality for availing loans?
High satisfied
satisfied
neutral
dissatisfied
High dissatisfied
15%
50%
20%
10%
5%
Graph-8 depicts that there are 15% respondents who are high satisfied about
documentation & procedure formality for availing loans,& 50% respondents are
satisfied,& 20% respondents neutral,&10% respondents are dissatisfied,&5% respondents
are high dissatisfies.
15
50
20
10
5
High satisfied
satisfied
neutral
dissatisfied
High dissatisfied
89
9. Bank location is significant criterion for taking loan?
High important
important
neutral
unimportant
High unimportant
10%
20%
32%
20%
18%
Graph-9 depicts that there are 10% respondents who are significant criterion for taking
loan was high important,& 20% respondents significant criterion was important,& 32%
respondents significant criterion was neutral,& 20% respondents significant criterion was
unimportant,&18% respondents significant criterion was high unimportant.
10
20
32
20
18
High important
important
neutral
unimportant
High unimportant
90
10. Timely & adequate loan availability is significant?
High important
important
neutral
unimportant
High unimportant
20%
32%
28%
15%
5%
Graph-10 depicts that there are 20% respondents who are timely & adequate loan
availability is high important,& 32% respondents are timely & adequate loan availability
is important,& 28% respondents are neutral,& 15% respondents are timely & adequate
loan availability is unimportant,& 5% respondents are timely & adequate loan availability
is high unimportant.
20
3228
15
5
High important
important
neutral
unimportant
High unimportant
91
11. Agriculture investment credit is an important input for improving agriculture
productivity & support?
Strongly agree
agree
neutral
disagree
High disagree
80%
10%
5%
4%
1%
Graph-11 depicts that there are 80% respondents who are strongly agree to agriculture
investment credit is an important input for improving agriculture productivity &
support,& 10% respondents are agree,& 5% respondents are neutral,& 4% respondents
are disagree,& 1% respondents are high disagree.
30
20
30
15
5
Strongly agree
agree
neutral
disagree
Strongly disagree
92
12. Low interest rate on loan plays an important role?
High important
important
neutral
unimportant
High unimportant
60%
30%
5%
3%
2%
Graph-12 depicts that there are 60% respondents who are high important to low interest
rate on loan,& 30% respondents are important to low interest rate on loan,& 5%
respondents are neutral,& 3% respondents are unimportant to low interest rate on loan,&
2% respondents are high unimportant to low interest rate on loan.
60
30
53 2
High important
important
neutral
unimportant
High unimportant
93
13. Quick sanctioning & disbursement of funds is an impact factor?
Strongly agree
agree
neutral
disagree
High disagree
60%
30%
5%
5%
0%
Graph-13 depicts that there are 60% respondents are strongly agree to quick sanctioning
& disbursement of funds is impact factor,& 30% respondents are agree,& 5%
respondents are neutral,& 5% respondents are disagree,& 0% respondents are high
disagree.
60
30
55
0
Strongly agree
agree
neutral
disagree
Strongly disagree
94
CH:7 FINDINGS
95
From the customers, most of them have taken any one type of loan. And customer who
have taken the loan , have taken it SBI banks.
Most of people prefer to take loan on their own land.
More than half of the customers got the loan in 31 to 45 days.
Majority of market prefer to take the loan from state bank of India because of low interest
rate.
More than half of customers are satisfied about terms & condition of bank.
Services are rated as good and satisfied by the customers.
Majority, law interest rate on loan plays important role.
More than half of customers are strongly agree to agriculture investment credit is an
important input for improving agriculture productivity and support.
Most of customers are strongly agree to quick sanctioning & disbursement of funds is an
impact factor.
96
CH: 8 CONCLUSION
&
RECOMMENDATIONS
97
CONCLUSION
Banking has become one of the most important tools for the success of any country. It
has become became a backbone of any countries growing economy. Banking over the
years, in India has seen lots of ups and downs. Banking sector has seen a lot of
transformation in the past post liberalization period, it has became very important for
bank to give services best to their capabilities. New technology needs to be introduced in
the banking sector as it is utmost clear that people are not only expecting normal banking
services but they want to be as their business partners and help accordingly. People today
demand more working hours, more services to be provided at no extra cost or minimum
cost. This has led to more professional attitude by the banking people.
Nowadays, agriculture investment credit has become very important & so the number of
taking agriculture credit has increased too much larger extent. People have become more
aware about agriculture investment credit.
As there is no higher security attached while giving loans to the farmers.
As per the SBI scheme there is less income criteria for giving loans, so bank should be
given the loan, and bank can keep that as mortgage.
At last, I can conclude that there is more number of respondent’s uneducated &less
educated in farming sector.
RECOMMENDATIONS
Customer awareness program is required so that more people become aware about the
consequences of non repayment of the loan. From the survey I have found as more
number of respondents are not aware about the CIBIL records.
If there are any kind of hidden charges then that must be disclosed to the customer before
giving loan to them.
From the survey, I have found that there is more number of customers who have taken
loans own lands.
In my survey, I have found that there are over all customer is satisfied about the terms &
conditions for loans, therefore bank should provide good service.
In my research, have found that many respondents are not properly communicated
regarding the terms, process & payment of installments. Customer care is an area which
should not be neglected. There should be proper co-ordination & no communication gaps.
Making them aware about the penalty (penal interest) that is being charged if they miss
loan installment.
98
CH:9 BIBLIOGRAPHY
99
REFERENCES:
Meeker Larry G. & Gray Laura (1987), “Indian Banking: 1987”, IBA Bulletin, March
1993, P 156.
Toor N.S. (1994). Finance and Growth: Schumpeter Might Be Right. Quarterly Journal of
Economic, 108 (3): 717-37.
S.N. Bidani (2002). Causes of Non-performing Assets in Public Sector Banks.Economic
Research, 17 (1): 16-30.
PaulPurnendu, Bose, Swapan and Dhalla, Rizwan S. (2011), “Performance Banks with
Non-performing Assets: An Analysis of NPAs, Yojna”, March 2011, PP 5-9.
Selvarajan B. and Vadivalagan, G. (2012), “Anatomy of NPAs of Commercial Banks,
Applied Finance, Volume 6, No.3, July, 2012, pp 14-26.
Veerakumar, K. (2012). Rooting out Non-performing Assets. Paper presented at the 5th
annual conference on Money and Finance in the Indian Economy, at IGIDR, Mumbai.
Murthy, K.V. Bhanu Gupta, Lovleen (2012): „Non-Performing Loans of Indian Public
Sector Banks -Some Panel Results‟, Economic & Political Weekly, February 13, 2012.
Joseph, Mabvure Tendai Edson, Gwangwava (2012), “Managing NPA Menace in
Banks”, IBA Bulletin, April 2012,PP 27-30.
Debarsh and Sukanya (2012), “Non-Performing Assets of Indian Public, Private and
Foreign Sector Banks: An Empirical Assessment”, ICFAI Journal of Bank Management,
Vol. 6, No. 3, pp. 7-28, August 2012.
Kavith N. (2012) The Determinants of Non-Performing Assets in Indian Commercial
Banks: an Econometric Study, Middle Eastern Finance and Economics, Issue 7 (2012).
ONLINE SOURCES:
http://en.wikipedia.org/wiki/State_Bank_of_India
http://en.wikipedia.org/wiki/State_Bank_of_India#Operations
http://en.wikipedia.org/wiki/State_Bank_of_India#Domestic_presence
http://en.wikipedia.org/wiki/State_Bank_of_India#Associated_banks
www.wikipedia.org
www.google.com
100
CH: 10 ANNEXURE
101
SUMMER INTERNSHIP PROGRAMME
STATE BANK OF INDIA
QUESTIONNAIRE
OBJECTIVE:
The main objective is to check & analyze the scope of agriculture investment credit in
Amreli district.
Section: A
Demographic information:
Name: ____________________________________________________________
Village: Taluka:
District: Amreli
Age:
(a) <21 years (b) 21-30 years (c) 31-40 years
(d) 41-50 years (e) >50 years
Education:
(a) SSC (b) HSC (c) Graduation
(d) Post graduation (e) None
Income: (Yearly)
(a) <100000 (b) 100000-250000
(c) 250000 (d) >500000
102
Section: B
land holding
Owned
Leased in
Leased out
Tick mark the type of irrigation facility you have
Private /own Bore-well
Rain /monsoon
Canal
Pump set
Tick mark the sources of finance / agriculture investment credit you have taken
For tractor
For dairy farming
Minor –irrigation
Godown facility
103
Give your opinion for below mentioned statement.
By what time period you got the loan?
7-14 days 15-30 days 31-45 days >45 days
Terms & condition of loan offered by bank?
High satisfied satisfied neutral
Dissatisfied High dissatisfied
How did you find the service provide to you?
Very good good mode rate
Bad very bad
Documentation &procedure formality for availing loans?
High satisfied satisfied neutral
Dissatisfied High dissatisfied
Bank location is significant criterion for taking loan?
High important important neutral
Unimportant High unimportant
Timely & adequate loan availability is significant?
High important important neutral
Unimportant High unimportant
Agriculture investment credit is an important input for improving agriculture productivity
& support?
Strongly agree Agree neutral
Disagree strongly disagree
Low interest rate on loan plays an important role?
High important important neutral
Unimportant High unimportant
104
Quick sanctioning & disbursement of funds is an impact factor?
Strongly agree Agree neutral
Disagree strongly disagree