Practical Training Report ON Analyze of Loan Assessment Process Undertaken at

JAIPUR Submitted in partial fulfilment for the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION

2010-11 SUBMITTED TO: UNIVERSITY OF RAJASTHAN SUBMITTED BY: ANIL KUMAR SHARMA B.B.A. 3rd YEAR

VIDYASHTALI INSTITUTE OF TECHNOLOGY, SCIENCE & MANAGEMENT, JAIPUR

Preface
Finance acts as a tool against all products determine which targets the organization can serve best, and designs appropriate role of mass marketing and advertising and disconcerting erosion of brand loyalty. these drastic Finance is the business function that identifies financial functions and products, services and programs to serve these markets. However, finance is much more than just an isolated business functioning- it is the philosophy that guides the entire organization. technological changes, we are witnessing a power shift, from manufacturing to giant retailers, a rapid growth and acceptance of store brands, new retails forms rowing consumers . Todays markets are changing at an incredible pace. In addition to globalization and price and value sensitivity, a diminishing changes. Finance is an orderly and insightful process for thinking about planning for market.

Acknowledgement
Summer training is one of the most vital and active part of the curriculum of management students. Its basic idea behind this is to strengthen the students concept through practical training and make them acquainted with actual method and procedures. I did the work as a management trainee at AXIS Bank Limited for a period of six weeks starting from 18th May, 2010. I would like to extend my heartfelt gratitude to Mr. Navneet Rally Branch Manager, for his proper guidance throughout the project. Without his support and cooperation I would have failed in my endeavours and targets in the summer training.

(Anil Kumar Sharma)

EXECUTIVE SUMMARY
The financial year 2007-08 will be remembered as a year of transformation in the history of the Bank, when the name of the Bank changed to Axis Bank from UTI Bank. The conviction that it was worthwhile to invest in building a brand that would solely be our own helped to create a distinct id entity. The name Axis Bank connotes solidity and transcends geographical boundaries as we seek to become a multinational bank. The Bank was successful in establishing a new identity in the market in a short span of time. The Bank once again met with considerable success over the past year and achieved all its key objectives. This encouraging performance not only underscored the sustain ability of the Banks high tempo of growth, but also helped to move closer to its objective of being one of the more customer-focused banks in the country. This is reflected in the robust growth in both business and revenue during 2007-08 and in various financial parameters. During 2007-08, the Bank's business and earnings continued to show high growth, indicative of a clear strategic focus, the communication of corporate priorities to branches across the country, and finally the execution of these goals through intensive efforts. The Bank reported a net profit of Rs. 1,071.03 crores during the year ended 31st March 2008, up 62.52%, from Rs. 659.03 crores in the previous year. Diluted earnings per share (EPS) were Rs.31.31 per share, up 37.38 % from Rs. 22.79 per share a year earlier. Return on Equity (ROE) was 16.09% compared to 21.84% a year earlier. The decline in ROE was primarily on account of the raising of fresh equity capital during the financial year. Return on Average Assets was 1.24%, compared to 1.10% in the previous year. In 2007-08, the Bank achieved a total income of Rs. 8,800.80 Crores, up 60.84 % from 2006-07. During this period, operating revenue was Rs. 4,380.84 crores, up 76 .76% from the previous year, while operating pro fit was up by 76.12% to reach Rs.2,225.92 crores. The strong growth in income was largely driven by a strong increase in both net interest income by 76.07% to Rs. 2,585.35 crores, and fee and other income by 77.75% to Rs. 1,795.49 crores. The strong income growth reflects the solid business growth across all banking segments and the successful execution of growth initiatives. The strong growth in incomes was partly offset by an increase in operating expenses, including depreciation, by 77.42% to Rs. 2,154.92 crores. The increase in operating expenses primarily reflects the higher costs incurred as a result of increased business levels that include additional sales and service personnel and higher variable compensation. Additional expenses incurred to support the growth initiatives of the Bank (including network expansion as well as the re-branding exercise) also contributed to the increase in operating expenses. As a conscious strategy of building an organic growth engine during the year, the Bank continued to expand it s distribution network, in both domestic and oversea s geographies, to enlarge its reach and accelerate its business momentum. The Bank has developed a branch network which is built

on customer-convenience and service, helping it particularly in the acquisition of low-cost retail deposits, retail assets, lending to agriculture, SME and mid-corporate and facilitating the crossselling of third-party products.

CONTENTS Serial No.

1.

Particular
Introduction to Banking Industry Early History Nationalized Bank In India Private Sector bank In India

2.

About Company: AXIS BANK Retail Banking Corporate Banking

3. 4.

Credit Policy/ Easy Credit Card Loan Assessment 1. Home Loan 2. Personal Loan 3. Loan Against Property 4. Auto Loan 5. Agriculture Loan

5.

Recommendations & Suggestions Objective of Study Scope of Study Importance of Study Facts & Findings

6.

Research Methodology KYC(Know Your Customer) Guideline

7. 8. 9. 10.

Conclusion SWOT Analysis Questionnaire Bibliography

1.INTRODUCTION TO BANKING INDUSTRY

Banking In India: Overview:
Banking in India originated in the first decade of 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency banks were established under charters from the British East India Company. They merged in 1925 to form the Imperial Bank of

India, which, upon India's independence, became the State Bank of India. For many years the Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.

Early History:
The first fully Indian owned bank was the Allahabad Bank, established in 1865. However, at the end of late-18th century, there were hardly any banks in India in the modern sense of the term. The American Civil War stopped the supply of cotton to Lancashire from the Confederate States. Promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondicherry, then a French colony, followed. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking centre. The Bank of Bengal, which later became the State Bank of India. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated banking in India. There were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. Punjab National Bank is the first Swadeshi Bank founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in particular inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

Nationalized Banks in India:

Banking System in India is dominated by nationalized banks. The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind nationalization was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. Before 1969, State Bank of India (SBI) was the only public sector bank in India. SBI was nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization of Indian banks took place in the year 1980. Seven more banks were nationalized with deposits over 200 crores.

List of Public Sector Banks in India is as follows:

Allahabad Bank State Bank of Indore State Bank of Patiala State Bank of Travancore UCO Bank United Bank of India s Andhra Bank Bank of India Canara Bank Corporation Bank Indian Bank Oriental Bank of Commerce Punjab National Bank State Bank of Hyderabad State Bank of India (SBI) State Bank of Mysore State Bank of Saurashtra Syndicate Bank Union Bank of India Vijaya Bank Bank of Baroda Bank of Maharashtra Central Bank of India Dena Bank Indian Overseas Bank Punjab and Sind Bank State Bank of Bikaner & Jaipur

Private Banks in India:

All the banks in India were earlier private banks. They were founded in the pre-independence era to cater to the banking needs of the people. But after nationalization of banks in 1969 public sector banks came to occupy dominant role in the banking structure. Private sector banking in India received a fillip in 1994 when Reserve Bank of India encouraged setting up of private banks as part of its policy of liberalization of the Indian Banking Industry. Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. Private Banks have played a major role in the development of Indian banking industry. They have

made banking more efficient and customer friendly. In the process they have jolted public sector banks out of complacency and forced them to become more competitive.

List of Private Sector Banks in India is as follows:

1Bank of Rajasthan 2Axis Bank 3Centurion Bank of Punjab 4Federal Bank 5ICICI Bank 6IndusInd Bank 7Jammu & Kashmir Bank 8Karur Vysya Bank 2SBI Commercial and International Bank 9United Western Bank 10YES Bank Bharat Overseas Bank Catholic Syrian Bank Dhanalakshmi Bank HDFC Bank IDBI Bank ING Vysya Bank Karnataka Bank Kotak Mahindra Bank South Indian Bank UTI Bank

2.About Company : AXIS BANK

Start on 1994

On July 2007 UTI Bank rebrand as Axis Bank Promoters:

Unit Trust Of India (UTI) Life Insurance Corporation (LIC) General Insurance Corporation (GIC) National Insurance Company Limited New India Assurance Company Limited The Oriented Insurance Company Limited United India Insurance Company Limited

Capitalization:
359 crore Public Holding = 57.60%

Registered Office:
Ahmadabad

Central Office:
Mumbai

Total Branches:
827

ATM:
3595

Bank Strengths:
Retail Banking Corporate Banking

Directors:

Shri N.C. Singhal Shri J.R. Varma Dr. R.H. Patil Smt. Rama Bijapurkar Shri R.B.L. Vaish Shri M.V. Subbiah Shri Ramesh Ramanathan Shri K. N. Prithviraj

Director Director Director Director Director Director Director Director

Auditors:
M/s. S. R. Batliboi & Co. Auditors Chartered Accountants

Registrar and Share Transfer Agent:

M/s. Karvy Computershare Private Limited

Axis Bank is one of the fastest growing banks in the country and has an extremely competitive and profitable banking franchise evidenced by:

Competitor: Private Sector competitor:

HDFC ICICI

Public Sector competitor:

SBI PNB

Profile:
Comprehensive portfolio of banking services includes Corporate Credit, Retail Banking, Business Banking, Capital Markets, Treasury and International Banking.

The Position as on 31st March 2009 was as under: Balance Sheet Size Total Deposits Net Advances Investments Net NPA Capital Adequacy Ratio Rs 1,47,722 crore Rs 1,17,374 crore Rs 81,557 crore Rs 46,330 crore 0.35% 13.69% %

Axis Bank has in place a sound technological platform:

Sound technological platform with centralized database and operations enabling 24*7*365 Anywhere Banking, in order to render the best customer service to its 5.5 million customer base.

Mission and Values:

1Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. 2Continuous technology up gradation while maintaining human values. 3Progressive globalization and achieving international standards. 4Efficiency and effectiveness built on ethical practices. 5Customer Satisfaction through 6Providing quality service effectively and efficiently 7"Smile, it enhances your face value" is a service quality stressed on 8Periodic Customer Service Audits 9Maximization of Stakeholder value 10Success through Teamwork, Integrity and People

Vision:
To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology

Retail Banking:

The Bank continued with its thrust on customer segmentation in the retail liabilities business to spearhead growth during the financial year 2008-09. Savings Bank deposits grew to Rs. 25,822 crores on 31st March 2009 from Rs. 19,982 crores as on 31st March 2008 showing a year on year growth of 29%. The Priority-Banking offering of the Bank has led the growth in the Savings Bank deposits. Other savings products, especially those for senior citizens, for women and for NRIs have contributed strongly to the overall growth of the savings bank deposits.

Savings Bank Product

Priority Banking (High Net worth) Savings Accounts for Trusts Savings Accounts for NRI Senior Privilege (Affluent Senior Citizens) Smart Privilege (Savings Accounts for Women) Salary Power (Pay Roll Account) Easy Access (Base Savings Bank Account)

Growth in Savings Bank Balances

100% 133% 262% 29% 73% 38% 49%

Growth in number of Accounts

108% 39% 80% 46% 50% 28% 26%

Corporate Banking:
The Business Banking Department (erstwhile Institutional Business Department) was set up in the year 2000, with the objective of having a special cell to serve the institutional and corporate clientele of the Bank. Business Banking initiatives revolve around transaction banking services to garner Business Current Accounts, Cash Management Service mandates, Government Business Collection & Payment Services. As a natural corollary, scope of the business was extended this year to Business loans for Small Businesses so that all product and services to small business

enterprises are comprehensively made available.

The Department presently focuses on the four broad areas through the respective Business Groups, as under:
Business Current Accounts Business Assets Cash Management Services Government Business

Corporate Credit:
Current Account deposits grew by 24% yoy, from Rs. 20,045 crores as at end March08 to Rs. 24,822 crores as at end March09. The daily average Current Account balances over the year grew by 24% yoy. The Corporate Credit portfolio of the Bank comprising advances to large and midcorporates grew by 68.33% to Rs. 29,026 crores from Rs. 17,244 crores a year ago. This includes advances at overseas branches amounting to Rs. 5,381 crores (equivalent to USD 134 million) comprising in main the portfolio of Indian corporates and their subsidiaries, as also trade finance. Credit exposures are taken based on risk analyses and mitigation measures, with proposals being subjected to critical scrutiny by the Bank's Risk Department. Efforts are made to constantly upgrade the skills required for faster turnaround of credit proposals and structuring of financial products. In addition to working capital loans, the Bank also takes long-term exposures to infrastructure and manufacturing projects set up by reputed industry groups. Relationship groups in the Bank are organised with an industry sector focus for better evaluation of specified risks. The credit policy of the Bank has also put in place ceilings on exposures to various industries with a view to containing concentration risk and facilitating portfolio diversification.

AXIS Banks Current Accounts:

The basic product for mobilizing such deposits is a Current Account. The Bank offers a range of current account products to meet the needs of the various customer segments such as Small Enterprises, Trade, Exporters, Corporate and institutions. The various Current Accounts offered by the Bank are:Hospitality Current Normal Current Account Business Advantage Account Business Classic Account Business Privilege Account Channel One Current Account for Govt Organisations Current Account for Banks Current Account for Builders & Real Estate

Capital Market Current Account Krishi Current Account Business Global Current Account Club 50 Current Account Shipping and Maritime Current Account Inland Road Transport Current Account Travel, Tourism and Account

3.Credit Policy/Easy Credit Card

What is Easy Credit Card?
A Credit Card that is... Easy for customers to get! Easy for us to sell!

Why is it Easy for the Customer?

1Flexible Credit Limit (Up to 80% of the FD amount) 2High Cash Withdrawal Facility 3Minimum Documentation (No Income Proof/KYC required) 4Fast Delivery of the Card 5Substantially Lower Interest Rate of 1.95% p.m. 6Guaranteed Approval 7Free Credit Period of 20-50 days 8Comprehensive Insurance 9Attractive Reward Points 10Other benefits of a regular credit card

Easier than Other Modes of Payment Easier than Other Credit Cards

Guaranteed Approval No Income Proof required Lower interest rate Credit Limit of choice Higher Cash withdrawal facility

Easier than Debit Cards

Interest free credit period of up to 50 days Higher Insurance Package Ease of Online & MOTO transactions

Easier than O/D against FD

Interest free credit period of up to 50 days Reward Points Complimentary Insurance Record of transactions

Easier than Cash

Convenience of Plastic Complimentary Insurance Reward Points Record of transactions

Variants: Available in three variants:

Easy Platinum Premium (In sourcing locations only) Easy Platinum Easy Gold

Pricing: Type Joining Fee Annual Fee* Annual Fee Waiver for Year 2

Platinum Premium

5,000

1,000

Customer Spends > Rs. 2,00,000 in Year 1

Platinum Gold

1,000 Nil

500 100 (Year 2 onwards)

Customer Spends > Rs. 2,00,000 in Year 1 Customer Spends > Rs. 50,000 in Year 1

* Annual Fee can be adjusted against Reward Points

4.Loan Assessment
Loan assessment means to evaluate that To whom i.e. customer, we are providing loan and Is he able to repay it or not. After analyzing the criteria standardised by the company and also which is listed below company decide the amount which is to be provide to customers.

Loan Types:
Home loan Personal Loan Loan against Property Auto loan

Agriculture Loan

Home Loan: Home Loan Criteria Min. work exp (Yrs) Salaried Individual
2 (3 if current emp <1 yr)

Professionals
3

Self Employed Individuals

Min net income (Rs.) Min ~ Max age (Yrs) Min ~ Max Tenor (Mths) Maximum LTV Clubbing of Income Pre payment penalty Processing fee

15000pm >24 ~ <= than superannuation at loan termination Maximum 240 80%

1.50 lacs pa >24 ~ <= 65 at loan termination Maximum 240

Maximum 240

Allowed for spouse only

NIL 0.5% of loan amt + Service Tax as applicable

Other Products / Variants Takeover of existing HL from Allowed other financier (Balance Transfer) Refinance Option
Allowed for properties purchased in last 6 months

Documents required for Home Loan: Proof of Identity, Signature & Age:
Passport Voter's Card Driving License PAN card

Photograph

Proof of Residence:
Ration Card Passport Latest Electricity Bill Latest Telephone Bill Latest Credit Card Bill.

Proof of Income:
Latest 3 salaries slip showing all deductions IT Returns Computation of income Balance Sheet and P/L A/c for the last 2 years certified by a C.A.

Bank Statement:
Last 6 months where salary/income is credited

Proof of Qualification:
Degree / Diploma - proof of professional qualification

Interest Rate: Home loan amount Applicable rate of interest

Up to Rs. 20 Lacks Above Rs. 20 Lacks

11.00% p.a. 11.25% p.a.

Other terms & conditions:

The property should be located within 50 Km radius of nearest Branch/RAC. Properties under HUF, Properties inherited under Hindu succession act, Godowns, Factories & Hospitals, Cinema Halls, Restaurants, Banquet Halls, and Schools will not be financed under the scheme. For Purchase of Residential Plots within Municipal / Government approved layouts only Agricultural land, commercial plots, properties under HUF, properties inherited under Hindu succession act, plots under litigation and acquisition by Public authorities will not be financed under plot loan scheme. Loan against property (LAP) will be offered only against fully constructed properties.

Personal Loan: For Salaried Individual:

Criteria Interest rate as per category Min. work exp (yrs) Min net income (Rs. p.m.) Min ~ Max age Min ~ Max loan amt (Rs.) Min ~ Max Tenor (months) Security / Collateral / Guarantor

Salaried Individual Normal

As per category grid 1 15,000 > 21 & < superannuation at loan termination 1- 10 lakes (1 lakes loan is only available for customers having salary power relationship) 12 ~ 60 (For CAT C and D employees maximum tenor is 48 months) Optional Cat A & B - Last 3 months Cat C & D - Last 6 mths

Phone Processing fee Eligibility calculation

landline / mobile / WLL mandatory 2% of loan amt Max loan = (Net monthly income - obligations) x Multiplier. Multiplier varies from 5 to 13 depending upon tenure. Present residence => 6 months if < 6 months, then it should be company provided, own house, transfer case or else local guarantor mandatory. Permanent Residence (PR) proof mandatory (a) For Bachelor / spinster staying alone, FI of PR if RAC is present or Tele verification. (b) For all loan cases > Rs. 3 lac

Criteria Interest rate as per category Min. work exp (yrs) Min net income (Rs. p.m.) Min ~ Max age Min ~ Max loan amt (Rs.) Min ~ Max Tenor (mths) Security / Collateral / Guarantor

Salaried Individual Prof (MBA, Engineer, Architect, CA, CS, ICWA)

As per category grid 1 15,000 > 21 & < superannuation at loan termination 1 - 15 lac (1 lakh loan is only available for customers having salary power relationship) 12 ~ 60

Optional Cat A & B - Last 3 mths Cat C & D - Last 6 mths landline / mobile / WLL mandatory

Phone Processing fee

2% of loan amt Max loan =(Net monthly income - obligations) x Multiplier. Multiplier varies from 5 to 15 depending upon tenure. Present residence => 6 months if < 6 months, then it should be company provided, own house, transfer case or else local guarantor mandatory. Permanent Residence (PR) proof mandatory (a) For Bachelor /

Eligibility calculation

spinster staying alone, FI of PR if RAC is present or Tele verification. (b) For all loan cases > Rs. 3 lac Degree / Diploma - proof of professional qualification`

Criteria Interest rate as per category Min. work exp (yrs) Min net income (Rs. p.m.) Min ~ Max age Min ~ Max loan amt (Rs.) Min ~ Max Tenor (mths) Security / Collateral / Guarantor Banking relationships Phone Processing fee

Salaried Doctors
Doctor in Cat B/C/D at a min of MBBS/BDS/ MS/MD = Cat B rate

3 15,000 (gross) >24 and <65 at loan termination 1 - 15 lac (1 lakh loan is only available for customers having salary power relationship) 12 ~ 60 Optional Last 6 mths

landline / mobile / WLL mandatory 2% of loan amt Max loan = (Gross monthly salary - obligations) x Multiplier. Multiplier varies from 5 to 15 depending upon tenure.

Eligibility calculation

Present residence => 6 months

if < 6 months, then it should be company provided, own house, transfer case or else local guarantor mandatory. Permanent Residence (PR) proof mandatory (a) For Bachelor / spinster staying alone, FI of PR if RAC is present or Tele verification. (b) For all loan cases > Rs. 3 lac

Proof of Qualification Dentists Association.

Degree, Registration with respective state medical councils Or

For Self Employed Individual: Criteria Interest rate as per category Min. work exp (yrs) Min net income (Rs. p.m.) Min ~ Max age Min ~ Max loan amt (Rs.) Self Employed Doctors
Cat A rate 2 Business has to be profitable for last 2 yrs with min gross receipt of Rs. 2.4 lac p.a. for large RAC & Rs.1.8 lac p.a. for smaller RAC >24 and <65 at loan termination 1.25 lacs - 20 lac

Min ~ Max Tenor (mths) 12 ~ 48 Security / Collateral / Guarantor Phone Banking relationships
Above 65 years of age co borrower/ collateral mandatory Landline/ mobile/ WLL at res. & Office. If own house, then office & res. can be same Last 6 mths

Eligibility calculation

Max loan= 0.6 Times annual gross receipts or 6 times eligible annual income. Eligible income= Avg of last two yrs' NP and Dep less obligations. Present residence => 12 months if < 12 months, then it should be parents or own house. Same as salary customer and 3rd Party Guarantor manadot Spinster 2% of loan amt

Residence Processing fee

Proof of Qualification

Degree, Registration with respective state medical councils Or Dentists Association.

Criteria Interest rate as per category Min. work exp (yrs) Min net income (Rs. p.m.) Min ~ Max age Min ~ Max loan amt (Rs.) Min ~ Max Tenor (mths) Security /Collateral / Guarantor Banking relationships

Self Emp. Prof. (MBA, Engineer, Architect, CA, CS, ICWA)

As per category grid 3 Min. annual eligible income Rs. 1, 50,000 p.a. for larger locations & for others Rs. 1,00,000 p.a. >24 and <65 at loan termination 1.25 lacs - 15 lac 12 ~ 48 Optional Last 6 mths. Average bank balance for past 6 mths should be greater than or equal to 1.5 times of proposed EMI. Average monthly balance as of 1st, 10th and 30th of the month. Minimum 10 entries for large RACs and 5 entries for all other RACs/Branches (where RAC is not present), in banking in each of the past 6 mths. Entries in a month are to be counted as a

summation of all credits and debits.

Phone

Landline/ mobile/ WLL at res. & off. If of own house, then off. & res. can be same

Banking relationships Last 6 mths Eligibility calculation

Max loan= Eligible income x Multiplier of max 5. Eligible income= Avg of last two yrs' NP and Dep less obligations. Present residence => 12 months if < 12 months, then it should be parents or own house. Same as salary customer and 3rd Party Guarantor manadot Spinster 2% of loan amt

Residence Processing fee

Proof of Qualification Degree / Diploma - proof of professional qualification

Shops & Establishments Act Certificate SSI registration certificate Sales Tax Certificate Lease/rental agreement for the commercial property from where the business is operated. Any other proof in the form of licenses/certificates/challans/bills, etc from a Government agency.

Employment Proof

Criteria Interest rate as per category Min. work exp (yrs) Min net income (Rs. p.m.) Min ~ Max age

Self Employed Normal (Indv. & Sole Prop) As per category grid 3 Min. annual eligible income of Rs. 2 lac >24 and <65 at loan termination

Min ~ Max loan amt (Rs.) Min ~ Max Tenor (mths) Security / Collateral / Guarantor

1.25 lacs - 15 lac 12 ~ 48 Optional Last 6 months. Average bank balance for past 6 months should be greater than or equal to 1.5 times of proposed EMI. Average monthly balance as of 1st, 10th and 30th of the month. Minimum 10 entries for large RACs and 5 entries for all other ACs/Branches (where RAC is not present), in banking in each of the past 6 months. Entries in a month are to be counted as a summation of all credits and debits. Landline/ mobile/ WLL at res. & Office. If own house, then office & res. can be same Max loan= Eligible income x Multiplier max 2.5. Eligible income= Avg of last two yrs' NP and Dep less obligations. Present residence => 12 months if < 12 months, then it should be parents or own house. Same as salary customer and 3rd Party Guarantor manadot Spinster 2% of loan amt Business Continuity Proof of last 2 years, documents such as: Shops & Establishments Act Certificate SSI registration certificate Sales Tax Certificate Lease/rental agreement for the commercial property from where the business is operated. Any other proof in the form of licenses/certificates/challans/bills, etc from a Government agency.

Banking relationships

`Phone Eligibility calculation

Residence Processing fee

Employment Proof

Documentation: DOCUMENTS REQUIRED

Proof of Identity, Signature & Age

Passport/ Voter's Card/ Driving License/ PAN card & Photograph.

Proof of Telephone Bill

Latest bill of landline/ mobile/ WLL stating name of borrower or address of borrower.

Proof of Residence

Ration Card/ Passport/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill.

Proof of Income

Latest salary slip showing all deductions and Last 2 years Form 16 along with current dated salary certificate

IT Returns for the last 2 years and Computation of income for the last 2 years certified by a CA, For Docs only - Balance Sheet, Profit & Loss Statement.

Bank Statement / Pass Book where salary is Credited

Cat A & B - Last 3 months, Cat C & D - Last 6 months

Last 6 months

INTEREST RATE GRID PERSONAL LOANS

ROI (only Fixed)

Salaried - Cat A

16.00%

Salaried - Cat B

19.00%

Salaried - Cat C

22.50%

Salaried - Cat D Doctors Self Employed Self Employed Professional (SEP) Self Employed Non Professional - Income > Rs.2 lacs up to Rs.3 lacs - Income > Rs.3 lacs Salary Power -Corporate Relationship PSU Salary Power -Corporate Relationship Others Priority Customers

23.50%

16.00% 19.00%

20.50%

19.50%

18.00%

0.50% lower than new category wise rates

0.25% lower than new category wise rates

Power Salute Customers

17.00%

PL to existing HL borrowers Self Employed Doctors & Salaried Doctors in CAT-A company Special offer for customers of 50 companies

At Mortgage Reference Rate - currently 14.25%

14.00% (no Prompt Payment Discount offered)

14.50% (no Prompt Payment Discount offered)

NOTE: The information given is indicative. Please refer to policy guidelines & circulars for details.

Loan against Property:

Criteria Work exp (Yrs) Min net income (Rs.) Min ~ Max age (Yrs) Min ~ Max Tenor (Mths)

Salaried Individual

min 1 yr if total exp 2 or (3 if current emp <1 yr)

7500 pm

>24 ~ <= than superannuation at loan termination Residential Property up to 180 months, Commercial Property up to 120 months

Maximum LTV

Residential Property up to 60%, Commercial 50%, Commercial Purchase 80% 2% will be charged if the amount exceeds 25 % of the principle outstanding during a quarter, otherwise No penalty. 1% of loan amt + Service Tas as applicable

Pre payment penalty Processing fee Takeover of existing Mortgage with additional refinance

Allowed

Criteria Work exp (Yrs) Min net income (Rs.) Min ~ Max age (Yrs)

Professionals
min 3 if Doctor else 4

1.00 lacs pa

>24 ~ <= 65 at loan termination

Min ~ Max Tenor (Mths)

Residential Property up to 180 months, Commercial Property up to 120 months Up to 120 months irrespective of property type Residential Property up to 60%, Commercial 45%, Commercial Purchase 75%

Maximum LTV

Pre payment penalty

2% will be charged if the amount exceeds 25 % of the principle outstanding during a quarter, otherwise No penalty.

Processing fee Takeover of existing Mortgage with additional refinance

1% of loan amt + Service Tax as applicable

Allowed

Criteria Work exp (Yrs) Min net income (Rs.) Min ~ Max age (Yrs) Min ~ Max Tenor (Mths)

Self Employed Individuals

min 3 1.00 lacs pa >24 ~ <= 65 at loan termination

Up to 120 months irrespective of property type

Maximum LTV

Residential Property up to 60%, Commercial 45%, Commercial Purchase 70%

Pre payment penalty

2% will be charged if the amount exceeds 25 % of the principle outstanding during a quarter, otherwise No penalty.

Processing fee Takeover of existing Mortgage with additional refinance

1% of loan amt + Service Tax as applicable

Allowed

Documents required for Loan against property: For Salaried Individual: Proof of Identity, Signature & Age Proof of Residence Proof of Income Bank Statement Proof of Qualification
Passport/ Voter's Card/ Driving License/ PAN card & Photograph. Ration Card/ Passport/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill. Latest 3 salary slip showing all deductions

Last 6 months where salary/income is credited

N/A

For Professionals:

Proof of Identity, Signature & Age Proof of Residence

Passport/ Voter's Card/ Driving License/ PAN card & Photograph. Ration Card/ Passport/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill. IT Returns, Computation of income, Balance Sheet and P/L A/c for the last 2 years certified by a C.A. Last 6 months where salary/income is credited

Proof of Income Bank Statement Proof of Qualification

Degree / Diploma - proof of professional qualification

For Self Employed Individuals:

Proof of Identity, Signature & Age Proof of Residence Proof of Income Bank Statement Proof of Qualification

Passport/ Voter's Card/ Driving License/ PAN card & Photograph. Ration Card/ Passport/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill. IT Returns, Computation of income, Balance Sheet and P/L A/c for the last 2 years certified by a C.A. Last 6 months where salary/income is credited N/A

Other terms & conditions:

The property should be located within 50 Km radius of nearest Branch/RAC. Properties under HUF, Properties inherited under Hindu succession act, Godowns, Factories & Hospitals, Cinema Halls, Restaurants, Banquet Halls, and Schools will not be financed under the scheme. For Purchase of Residential Plots within Municipal / Government approved layouts only Agricultural land, commercial plots, properties under HUF, properties inherited under Hindu succession act, plots under litigation and acquisition by Public authorities will not be financed under plot loan scheme. Loan against property (LAP) will be offered only against fully constructed properties. No LAP will be offered against plot of land

Auto Loan:
Salaried
Min 21 years at sanction to Maximum 58 years at the time of loan maturity Minimum Rs. 100,000 1 - 7 yrs Up to 85% of On road price*

Criteria Age Loan amount Tenure LTV

Income Norms

Gross Salary of Rs. 1 Lac p.a. for Cat A/B cars & Rs 2 Lacs p.a. for Cat C/D cars

Work-experience

Minimum 2 years of total employment

Telephone

Landline / WLL phone at Residence. In case no phone at Resi. Post-paid mobile connection with Resi. Add. Required. Foreclosure < 6 months - 10% on principal outstanding charged, if > 6 months - 5% of principal outstanding, No part prepayment allowed Minimum of Rs 2500 for CAT A cars, Rs. 3000 for Cat B & C Cars and Rs 3500 for Cat D cars (plus upto 1% of the loan amount at the discretion of the Branch Manager) 3 times of annual gross or 30 times of avg net salary of 3 months. EMI must not exceed 50% of net salary

Foreclosure

Processing Fee

Eligibility calculation

Criteria

Self-Employed
Min 21 years at sanction to Maximum 65 years at the time of loan maturity Minimum Rs. 100,000 1 - 7 yrs Up to 85% of On road price* Gross Income of Rs. 60,000 p.a. for Cat A/B cars & Rs 1 Lac p.a. for Cat C/D cars (Gross Income : N.P after Tax & Depreciation)

Age Loan amount Tenure LTV Income Norms

Work-experience Telephone

Minimum 3 years in business Landline / WLL phone at Residence. In case no phone at Resi. Post-paid mobile connection with Resi. Add. Required. Foreclosure < 6 months - 10% on principal outstanding charged, if > 6 months - 5% of principal outstanding, No part prepayment allowed Minimum of Rs 2500 for CAT A cars, Rs. 3000 for Cat B & C Cars and Rs 3500 for Cat D cars (plus upto 1% of the loan amount at the discretion of the Branch Manager)

Foreclosure

Processing Fee

Eligibility calculation

6 times Gross Income p.a. (Gross Income = Net Profit + 50% of Depreciation for the last financial year.)

Criteria Age Loan amount Tenure LTV

Partnership Firms
Min 21 years at sanction to Maximum 58 years at the time of loan maturity for loan executing partner. Minimum Rs. 100,000 1 - 7 yrs Up to 85% of On road price*

Income Norms

Gross Income of Rs. 60,000 p.a. for Cat A/B cars & Rs 1 Lac p.a. for Cat C/D cars (Gross Income: N.P after Tax & Depreciation). Min Turnover of Rs 4.5 Lacs Minimum 3 years in business Landline / WLL phone at Resi. & Office for loan executing partner. In case no phone at Resi., post-paid mobile connection with Resi. Address is required Foreclosure < 6 months - 10% on principal outstanding charged, if > 6 months - 5% of principal outstanding, No part prepayment allowed Minimum of Rs 2500 for CAT A cars, Rs. 3000 for Cat B & C Cars and Rs 3500 for Cat D cars (plus upto 1% of the loan amount at the discretion of the Branch Manager) 6 times Gross Income p.a. (Gross Income = Share in Profit + Salary + Interest on Capital + 50% of Depreciation for the last financial year) (to the extent of his Share in Partnership)

Work-experience

Telephone

Foreclosure

Processing Fee

Eligibility calculation

Criteria

Private & Public Ltd. Companies

Min 21 years at sanction to Maximum 65 years at the time of loan maturity for the loan executing director/authorized signatory Minimum Rs. 100,000

Age Loan amount

Tenure LTV Income Norms

1 - 5 yrs Up to 85% of On road price* Min Turnover of Rs. 2 Crore and Minimum Net Profit of Rs 50 Lacs. (No Cash Loss in the last 2 yrs)

Work-experience

Minimum 3 years in business Landline / WLL phone at Resi. & Office for loan executing director/authorized signatory. In case no phone at Resi., postpaid mobile connection with Resi. Address is required Foreclosure < 6 months - 10% on principal outstanding charged, if > 6 months - 5% of principal outstanding, No part prepayment allowed Minimum of Rs 2500 for CAT A cars, Rs. 3000 for Cat B & C Cars and Rs 3500 for Cat D cars (plus upto 1% of the loan amount at the discretion of the Branch Manager) 6 times Avg. Net Profit of the Last 2 Years

Telephone

Foreclosure

Processing Fee

Eligibility calculation

Documents required: For Salaried:

Proof of Identity

Passport / Voters Card / Driving License with Photograph/ PAN card Latest salary slip showing all deductions AND Latest Form 16 / Income Tax Return (Form 16 FYE March should be available June onwards) Ration Card/Latest Electricity Bill/Latest Telephone Bill/Passport/Latest Credit Card Bill/ Driving License

Proof of Income

Address Proof (of the residing city)

Passport copy/ Driving License with Photograph/ Bankers Signature Verification Verification

Additional Documentation For Self-Employed:

NA

Proof of Identity Proof of Income Address Proof (of the residing city) Signature Verification Additional Documentation

Passport / Voters Card / Driving License with Photograph/ PAN card Latest Income Tax Return and Computation of income

Ration Card/Latest Electricity Bill/Latest Telephone Bill/Passport/Latest Credit Card Bill/ Driving License Passport copy/ Driving License with Photograph/ Bankers Verification Declaration from Proprietor

For Partnership Firms:

Proof of Identity

Copy of Partnership Deed & the following documents required for the loan executing partner: Passport / Voters Card / Driving License with Photograph/ PAN card

Proof of Income

Audited Balance Sheet, Profit & Loss Account for last 2 years along with the latest 2 Income Tax Returns

Address Proof (of the residing city) Signature Verification Additional Documentation

Telephone Bill/Electricity Bill/ Shop & Establishment Act Certificate/ SSI Registered Certificate/ Sales Tax Certificate Bankers Verification Authority letter signed by all partners

For Private & Public Ltd. Companies:

Copy of Memorandum & Articles of Association & the following documents required for the loan executing director/authorized signatory. Passport / Voters Card / Driving License with Photograph/ PAN card Last 2 Years Audited Financials Telephone Bill/Electricity Bill/ Shop & Establishment Act Certificate/SSI Registered Certificate/ Sales Tax Certificate/PAN No. Bankers Verification List of Directors, Share Holding pattern, Copy of Board Resolution

Proof of Identity

Proof of Income Address Proof (of the residing city) Signature Verification Additional Documentation

On Road Price = Ex Showroom rate + Insurance + Road Tax + Registration charges

Interest Rate Grid CAR CATEGORY CAT A CAT B > 60 84 months

Upto 35 months

36 - 60 months

13.00%

13.00%

13.50%

13.00%

12.75%

13.50%

CAT C

13.00%

12.75%

13.50%

CAT D

13.00%

12.50%

13.50%

Agricultural Loan: Financing farmers against pledge of warehouse or cold storage receipts: Facility limit Nature of facility
Ceiling of Rs. 5.0 lac per farmer Loan against the pledge of warehouse and/ or cold storage receipts Original depositors of the receipts. The borrower to undertake that he is a farmer and also to provide a declaration to the effect that he/she is not defaulter to any Bank/Financial Institution CWC/SWC Warehouses Private warehouses/Cold storages/Godowns with a minimum storage capacity of 100 MT Value of the loan = Value of commodity minus commodity specific margin amount BPLR- 4.75%; at present 15.25 % p.a. payable with the principal repayment. Min 40%. The branch should monitor the prices of the commodities on a weekly basis by referring to the prices of the commodities as mentioned in the local dailies. It should be ensured that the margin at no point of time falls below 30% i.e. when the total outstanding as a percentage of the market value of the security exceeds 70%. In the eventuality of this happening, a margin call will be issued. The branch will inform the borrower to bring in the shortfall in the margin. In case, additional margin is not brought in by borrower within 15 days, the Bank will have the right to dispose off the goods. The value of the commodity as security shall be the lower of the following: Value of goods as reflected in the warehouse receipt. Value of the goods based on the average price prevailing in the nearest mandi on the day previous to the date of disbursement.

Eligibility for farmers

Designated warehouse Value of Loan

Rate of Interest

Margin

Valuation

Price provided by the Commodity Business Group, Central Office from time to time for various commodities The maximum tenure of each loan shall be 12 months. Branches should take timely steps to keep the warehouse receipts valid and insurance of the stocks financed for that period in place during the currency of the facility Rating of Individual According Rating Table which is given below. The stocks pledged to the Bank should be insured adequately with Bank clause. The insurance premium will have to be borne by the borrower. The Branch should ensure that the warehouses are insured against fire, etc. Primary-: Pledge of warehouse receipts duly endorsed in Banks favour Primary-: Pledge of warehouse receipts duly endorsed in Banks favour Collateral-: Third party Guarantee A personal guarantee from a person who fulfils at least one of the following eligibility criteria: Should own at least 3 acres of cultivable land Employed in Government, Semi Government organization and working in the cadre of class III and above or equivalent designation in a reputed private sector undertaking. Running own business with assets equal to the amount of the loan proposed. Post dated cheques to be collected from borrowers Stock of commodity brought to the designated warehouses for pledge has to be certified for quality and quantity by the M&C agent. In case of CWC/SWC receipt, the same is already available from the warehouse manager The complete set of borrower wise loan documents should be obtained by the branch The warehouse manager should ensure to create pledge of stocks in favour of Bank The financing amount will be 60% of the market value of the stocks approved for financing The stocks placed in the warehouse should be insured adequately with Bank clause

Tenure of the loan Risk rating of the individual Insurance Security Upto Rs. 200,000/Over Rs. 200,000 Guarantee for limits upto Rs. 200,000/--NIL Guarantors requirements for loans above Rs. 200,000/Other Conditions

Pre-disbursement conditions

Disbursement

The individual borrower availing this facility will have to open an account at the concerned local branch (the account can be opened under SBSPL category wherein the average balance requirement is Rs. 1000/-). The amount will disbursed by crediting the account of the borrower, at the concerned branch. Have to sign M&C agreement with Bank to buy or arrange for the sale of the stock in case of default of farmer Letter of guarantee/comfort letter (in absence of the letter of guarantee) (Branch should try and obtain a letter of guarantee)

Security from warehouse owner/manager

Selection of the warehouse/cold storage

The warehouse/cold storage has to have adequate facilities (like aeration, pest control, loading and unloading facilities, electricity, security, etc.) to allow for the storage of the produce with minimum loss in quality and quantity. The branches should check the credentials of the warehouse owner before financing against the receipts issued by that warehouse. It is suggested that the branch heads should identify only those warehouses in their area, based on the credit report, integrity and track record of warehouse owner. It is suggested that branches may give preference to the warehouses accredited by National Commodity and Derivative Exchange, India (NCDEX) who provide warehouse receipts to the farmers in dematerialized form.

Monitoring

M&C agent has to monitor the security. The quality and quantity report has to be sent to the branch on a monthly basis. The branch officer may appoint an inspection agency to inspect the warehouse/cold storage, monthly. The branch officer may inspect the warehouse/cold storage, quarterly, for verification of the security. The M&C agent should monitor the quantity and quality of the additional stock brought in lieu of a margin call.

Repayment

Bullet repayment along with interest on due date.

Penal Interest Pre-payment charges Processing fee

2% p.a. on overdue loan/unpaid interest 2% (if loan is repaid within one month. Otherwise nil) .40% of the loan sanctioned The M&C agent acts as a monitoring agency on behalf of the Bank. The M&C agent acts as an interface between the Bank and the farmers. Sourcing of the business to the branch. Supervision of the unloading and weighing of the produce. Overseeing the tagging, stacking and segregation of the produce in the identified space. The security of the stocks should also be verified. Right identification of the warehouse chamber where the pledged stocks have to be stocked and proper stacking of the produce. Consolidation of the produce and right tagging borrower wise with a sign clearly indicating the Banks lien on the goods. Maintenance of a stock statement based on the borrower codes and net weights of the commodities. To attest the quantity and quality of the produce, valuation of the produce and record the same in the warehouse receipt. To inform Bank in case of margin call stock being brought in. Allow the release of the goods only on receipt of a written intimation from the branch that the goods can be released Arranging for buyers/buy back of the stock in case of default by the farmer

M&C agent Roles and responsibilities

M&C Agent charges Event of default

Normally 1% of the loan amount. However, branches can pay maximum 1.5% of the loan amount wherever required. In the event of default of a borrower, M&C agent should arrange for buyers/buy back of the stock. The Bank shall be entitled to sell the pledged goods either through the M&C agent/ public auction/private sale/through any commodity exchange

and adjust the sale proceeds against the amount outstanding from the borrower. The price at which the pledged commodity is sold by the Bank is final and binding on the borrower. However, in case the proceeds from such a sale are not sufficient to satisfy the amount outstanding in full, the Bank will be entitled to recover the shortfall from borrower.

Documents to be executed by the borrower Documents to be executed by the M&C agent

DP Note DP delivery letter Letter of waiver Pledge Agreement: To be finalized in consultation with the Law Department Warehouse receipt (to be duly endorsed in favour of the Bank) Management and Collection Agreement: To be finalized in consultation with the Law Department Registers to be maintained by the branch: Loan application cum disposal register Price, Stock and Margin recovery register Insurance due date register Branches would keep the above mentioned registers in physical form or in a excel sheet in the system. The records should be updated at the stipulated time and hard copies be preserved in a separate file. Registers to be filled in by M&C agent: Stock and margin register

Registers to be maintained

Documentation:
Following documents should be obtained from borrower. 1Application form 2D.P.Note 3D.P.Note delivery cum waiver letter 4Letter of Pledge 5Proof of agricultural activity (copy of land records, land revenue tax receipts etc.) 6Declaration of ownership of the ornaments pledged 2Authorisation from the borrower for disclosure of information

The following document should be obtained from the appraiser

Certificate of valuation

Penal interest:
2% p.a. on overdue amount.

Processing & Appraiser fees:

0.25%+ST subject to maximum of Rs. 500+ST BH has discretion to waive/ reduce if RoI is increased by 0.30% No fee up to Rs.25,000/- loan

 0.25% subject to maximum of Rs.500/-

Insurance:
Gold ornaments pledged to the Bank will be covered under the Master policy of theft and burglary. Banks indemnity policy will be obtained by the Bank centrally.

Disbursement:
Up to Rs.50,000/- in Cash. Above Rs.50,000/- by PO.

Sanctioning Authority:
The sanctioning authority would be the Branch Head in the category of Manager/AVP/VP. The branches should send the Control Returns on monthly basis to the Zonal Office for noting and review. The VP (Credit & Forex) will be the reviewing authority at the Zonal Office.

Repayment:
Repayment period not exceed 18 months. The facility will be renewable at the request of the borrower after 18 months. The repayment schedule should be aligned with the crop harvest cycle.

Release of the gold ornaments on repayment by borrower

The branch should release the security only if the full amount of interest, other charges and principal has been repaid. The borrower should present the signed receipt issued to him/her by the Bank while taking delivery of the ornaments. The borrower(s) needs to sign the receipt acknowledging that the gold ornaments have been received by him/her in good order and condition. The signed receipts should be arranged as per the date of closure of loan account and shown to the inspecting authority at the time of the inspection. Guidelines for the release of the pledged jewellery on liquidation of the loan on death of the borrower will be issued later in consultation with the Law Department.

Right of Disposal of Security:

In case of default, Bank has the right to dispose the gold ornaments for satisfaction of the loan by way of public auction or private treaty and proceed against the borrower.

Direct Financing to Farmers for Cattle Loans through Dairies/ Cooperatives: Other Terms and Conditions:
In case guarantee is not available from Village Dairy cooperative, a guarantee from a person within the group or a guarantee from a third person acceptable to the Bank should be obtained. The personal guarantee has to be obtained from a guarantor fulfilling at least one of the following eligibility criteria: should own his/her own tractor/own at least 2 acres of irrigated land/4 acres of dry land employed in government, semi government employment in the category of Scale III and above or working with any reputed private sector undertakings at a respectable positions Running own business and having assets with a market value equal to the amount of the loan. The Branch will reserve the right to reject any loan application based on its own appraisal. The Branch sanctions will be reviewed by the Vice President (Credit & Forex) at the zonal office in the form of monthly control returns. In case the Borrower stops supplying milk to the Union the entire loan amount shall be repayable in lump sum/ recalled. Bank reserves the right to conduct inspections of the cattle/ shed constructed on a periodic basis without any prior notice. The Milk Union will arrange to provide monthly MIS regarding the continuity and regularity of milk supply by the borrower.

5.Recommendations & Suggestions

Facts & Findings
1Working Capital of the Bank is decreasing year by year which is not a good sign for the bank. 2In the year 2007-08 Operating Margin was 23.25, in the year 2006-07 it was 21.84. This shows that Operating profit margin is increasing which is good for the bank. 3In the year 2007-08 Gross Profit Margin was 21.44, in the year 2006-07 it was 19.79. This shows that Gross profit margin is increasing which is good for the bank. 4Net profit margin is increasing year by year. 5Debt / Equity is decreasing. 6Fixed Assets Turnover ratio is increasing which shows that fixed assets are efficiently utilized. 7Current Ratio is increasing which is showing a sound financial position of the company. 8Quick Ratio of the bank is increasing it shows that position of the bank is improving. 9Sales of the Bank is increasing year by year in the year 2007-08 it was 70005.31 in the same year Total Income and Net profit Before tax also increases respectively.

10Both Saving Bank deposits and current bank deposits is increasing year by year which is a good sign for the bank. 11This is a positive trend in Retail assets and Non Retail advances. 12Earning per share is increasing which shows that an investor can invest in AXIS Bank to get good profits.

Trading Profit
400 200 0 Profit 69 200-01 69 2001-02 314 2002-03 263 314 263 Profit

INCREASING REACH

Month

March

March

March

01 Centers 48 Covered Branche 101 s+ Extn. Counter s ATMs 303

02 63 139

03 80 192

491

822

Increasing Reach
1000 0 Month 1-Mar 2-Mar 0 48 63 80 1 0 48 63 192 139 0 101 2 0 101 139 0 3 0 0 822 491 303 4 0 303 491 5

Month 1-Mar 2-Mar 3-Mar

RISING PROFITABILITY

Year Net Profit Operating Revanues

200-01 86 261

2001-02 134 615

2002-03 192 733

Rising Profitability
800 600 400 200 0 200-01 2001-02 2002-03 86 261 134 192 Operating Revanues 615 733 Net Profit

FEE INCOMES

Year Fee Incomes(Cr. )

200-01 86

2001-02 98

2002-03 144

Fee Incomes
200 150 100 50 0 200-01 2001-02 2002-03 86 98 144 Fee Incomes(Cr.)

ATM CHANNEL MIGRATION

Month

March 01

March 02

March 03

Cardbase (Lakhs) Card withdrawls (Crore) No.of Transactions (Lakhs)

2.9 70 8

5.6 177 15.9

12.2 419 35.3

ATM CHANNEL MIGRATION

450 400 350 300 250 200 150 100 50 0 2.9 70 8 5.6 15.912.2 3/2/04 35.3 177 Card withdrawls (Crore) No.of Transactions (Lakhs) 419 Cardbase (Lakhs)

3/1/04

3/3/04

INTELLECTUAL CAPITAL

Years Below 30 years 30-40 Years 40-50 Years 28% 11% 2%

Profit

Above 50 Years

59%

Intellectual Capital

28% 59% 2%

Below 30 years 30-40 Years 40-50 Years Above 50 Years

11%

6.RESEACH METHODOLOGY
Search as a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. Some people consider research as a movement, a movement from known to unknown; it is actually a voyage of discovery. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of whatever the unknown can be termed as research.

Definition of Research
according to Clifford woody" research comprises defining and redefining problems, formulating hypothesis or suggested solution, collecting organizing and evaluating data , making deduction and reaching conclusion and at last carefully testing the conclusion to determine weather they fit the formulating hypothesis". according to D. Slesinger and M. Stephenson" the manipulation of things , concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art".

Research is thus an original contribution to the existing stock of knowledge making for its advancement.

Research objective
1.To recruit the Quality persons as insurance advisor. 2.To develop awareness about the ICICI Prudential products. 3.To develop a competency of the ICICI Prudential 4.Universe: Finite population of customers walk in at the branch premises. 5.Sampling Size: 150 customers 6.Sampling technique used: Random sampling because the universe is large and each element have equal oppurtunity of being choosen and is done randomly. 7.Research Design: The research design was in the manner to cater the question regarding the customer awareness about the various policies given by the advisors.

Data collection
Research was done with the help of collection. There were two method of collecting the information:1.Primary 2.Secondary Primary Secondary

1 Questionnaire 3 Personal Interaction 5 Telephone Calls 7 Survey 4

2 Magazine Internet

6 Organization Manual

Sample Size
As the target market is already defined, the database that was already with the company was used for data collection exercise. Sample size was 213. Data was collected by primary sources through questionnaire by taking personal and telephonic interviews. 80% schedule filled through personal interviews and rest 20% through telephonic interviews.

Sample Area
C-Scheme, Jaipur

LIMITATIONS OF THE STUDY

1As the movement throughout the city is not possible due to certain constraints so the movement was quite restricted. 2People are not ready to go for training. As the training period is of 17 days and it involves full day, so it becomes difficult for them to leave their offices or shops for such a long time. 3The compulsion of selling 12 policies in a year also restricts them from becoming advisors. If they do not fulfill this target, then their license is cancelled after a year. 4Lack of trust on any company of Private Sector. 5Lack of knowledge about the products of ICICI Prudential and their total and blind faith on LIC. 6Sometimes, fresh graduates want to become advisors but the company denies making them an advisor as they are very fickle-minded and also unreliable.

7There is a problem in targeting Chartered Accountants. ICAI, which is the governing body of Chartered Accountants, does not allow them to become advisors. However, now they have permitted some CAs to become advisors, but these are only those ones who are doing jobs somewhere and not allowed the ones who are doing their practice. So, still this decision is very dicey. 8Sometimes, even those people want to become advisors for the company who are not a localite but then the major problem that they face is that they have got no natural market, so they are very susceptible about their performance and whether they will be able to generate business for the company or not, so they avoid to take up this challenge. 9It was a great problem to get appointments from people in the month of March as most of them were busy in filing their returns. 10Some people ask about comparative analysis with LIC.

Documentation according RBI KYC (Know Your Costumers) Guideline:

Mentioned below is the list of documents to be submitted with the completed duly signed Account Opening Form:

Basic Common Documentation:

1Proof of Identity: PAN Card, Voter Id Card, Passport, Driving License 2Proof of Address: Latest Telephone Bill or Electricity Bill

Public or Private Limited Companies:

1Certificate of Incorporation and Commencement of Business 2Memorandum and Articles of Association 3Board resolution authorising the opening and operation of the account 4PAN or GIR No. or completed Form 60

5List of Directors with residential addresses

Partnership Firms:
1Partnership Deed and Registration Certificate 2Shop and Establishment Certificate 3Letter from partners approving the persons concerned to open and operate the account

Proprietorship Concerns:
1Certificate from State Govt or Statutory Body or Trade License or Sales Tax 2Certificate or Shop and Establishment Certificate 3Letter of proprietorship, duly signed by the proprietor in his or her 4individual capacity (with a rubber stamp) Hindu Undivided Family 5Letter of HUF duly signed by Karta and all Co-parceners 6PAN or GIR No. or completed Form 60, 61. 7Names of Karta and Co-parceners with residential addresses 8Latest passport-size photographs of all the authorized signatories

Trusts:
1Copy of the trust deed 2Copy of the registration certificate 3Copy of the resolution by the trustees authorising the members concerned to open and operate the account 4List of Trustees with residential addresses 5Photographs of the members operating the account Associations or Clubs 6Bye-laws of the association or club 7Certificate of Registration 8Copy of the resolution by the Board authorising the members concerned to open and operate the account 9Photographs of the members operating the account

Interest Rates:
Saving Account Deposit Interest Rate - 3.5% Rates Effective from: Thursday, August 21, 2008

Period Interest Rates On Domestic Deposits

Deposits

Interest Rate on Interest Rate on Interest Rate on Deposits Below Deposit 15 to 50 Deposit 50 Rs 15 lakhs (%) Lakhs (%) lakhs to 1 crore (%)

7 days to 14 days 15 days to 29 days 30 days to 45 days 46 days to 60 days 61days to less than 3 months 3 months to less than 4 months 4 months to less than 6 months 6 months to less than 9 months 9 months to less than 1 year 1 year to less than 2 Years 2 years to less than 3 years 3 Years to less than 5years 5 Years upto 10 years

No Qute 2.50 3 3.50 4 4.50 4.50 6 6.5 7.30 7.60 7.25

1 2.50 3 3.50 4 4.50 4.50 6 6.50 7.30 7.60 7.25 7.25 4.50 4.50 6

1 2.50 3 3.50 4

6.50 7.30 7.60 7.25 7.25

7.25

Financial Performance:
1Profit after tax up 69% to Rs. 1,815.36 crores.

2Net Interest Income up 43% to Rs. 3,686.21 crores. 3Other Income up 61% to Rs. 2,896.88crores. 4Fee Income up 64% to Rs. 2,447.35 crores 5Deposits up 34% to Rs. 1, 17,374 crores. 6Demand Deposits up 37% to Rs. 50644 Crores. 7Advances up 61.79% to Rs. 81,557 crores. 8Retail Assets up 18% to Rs 16,052 crores. 9Network of branches and extension counters increased from 827. 10Total number of ATMs 3595. 11Net NPA ratio as a percentage of net customer assets down to 0.35% 0.36% from 0.36%. 12Earning per share (Basic) increased from Rs. 31.31 to Rs 50.27. 13Proposed Dividend up from 45% to 60%. 14Capital Adequacy Ratio stood at 13.69% as against the minimum regulatory norm of 9.26%%.

BUSINESS : HIGHLIGHTS

1. Profit after tax up 43% to Rs 192.18 crore 2. Net interest income up 62% to Rs 322.40 crore. 3. Net interest margin increased from 1.68% to 2.09 % 4. Fee income up 47% to Rs 143.77 crore 5. Return on average assets up from 1.13% to 1.17 % 6. Deposits up 38% to Rs 16, 964.72 crores 7. Demand deposits up 93% to Rs 3,908.78 crores 8. Share of demand deposits up from 16.50 % to 23.04% 9. Advance up 34% to Rs 7,179.92 crore 10. Retail assets up 354% to Rs 1,099.94 crore 11. Network of branches and extension counters increase from 139 to 192 12. Total No. of ATMs went up from 491 to 822 13. No. of account up 48 % to 16,48,223 14. Net NPA ratio as percentage of customer assets down to 1.92% from 2.67% 15. Earning per share(diluted) increased from Rs 9.31 to Rs 9.97 16. Dividend up from 20%to 22% 17. Capital adequacy ratio increased from 10.65% to 10.90%

TRADING PROFITS

Year Profit

200-01 69

2001-02 314

2002-03 263

INTELLECTUAL PROFILE

Qualification CAICWA/CS/CFAS MBAs 6%

Percentage

25%

ENGINEERS/TECHNICA 10% L BANKING PROF. OTHERS 25%

34%

Intellectual Profile
6% 25%

CAICWA/CS/CFAS MBAs

25%

ENGINEERS/TECHNI CAL BANKING PROF.

34%

10% OTHERS

Shareholders

Serial no. 1.

Name of shareholders

% of paid up capital

Administrator of the specified undertaking of the United trust of India (AXIS 1) 33.56% 13.54% 7.64% 28.12%

2. 3. 4. 5. 6.

Life insurance Corporation of India General insurance corporation and its subsidiaries Overseas investors/OCBs/NRIs

Other Indian financial institAXISons/mutual funds/banks5.01% Others 12.12%

Total

100%

SHAREHOLDING

Companies AXIS-I LIC CDA CitiCorp Chrys Capital Others 33.56 13.54 20.12 3.83 3.83 25.12

Percentage

Shareholding
Others 25% Chrys Capital 4% CitiCorp 4% CDA 20% LIC 14% UTI-I 33% UTI-I LIC CDA CitiCorp Chrys Capital Others

Corporate Philosophy
AXIS bank as an organization has been built on the principles of professionalism, ethics and financial expertise. It is AXIS banks firm belief that its existence and development are closely interlinked with its ability to serve both retail and corporate clients well. Over the years, this belief has evolved into its corporate philosophy of growth, innovation and stability. Profitable growth is a key aspect of AXIS banks philosophy. AXIS bank has diversified into a wide range of financial services and affiliated, aims to provide the benefits of universal banking to its corporate and retail clients and its investors. AXIS banks constantly endeavor to create products that best most the specific needs of its clients and investors. In addition, AXIS bank also seeks to deliver these products effectively and efficiently. It is therefore, sets for itself high standards of services and constantly strives to improve upon them. The goal is to insure that dealing with AXIS bank is safe, simple and efficient. AXIS bank values the trust that has been reposed in its financial expertise, both by its clients and its investors. In all of AXIS banks investment offering, safety of investment is of paramount importance. Therefore, AXIS bank attempts to pursue growth and innovations without compromising on its stability.

7.CONCLUSION
The name Axis Bank connotes solidity and transcends geographical boundaries as we seek to become a multinational bank. The Bank was successful in establishing a new identity in the market in a short span of time. The Bank once again met with considerable success over the past year and achieved all its key objectives. The Bank has developed a branch network which is built on customer-convenience and service, helping it particularly in the acquisition of low-cost retail deposits, retail assets, lending to agriculture, SME and mid-corporate and facilitating the cross-selling of third-party products.

SWOT ANALYSIS

STRENGTHS

The strengths are: 1AXIS Bank is the third largest player in the insurance industry in India 2It is the largest home loan financing institution in India 3AXIS Bank is a 70 years old company (founded in UK) 4AXIS Bank enjoys the highest AAA credit rating, which ensures highest safety of money 5Mutual Fund 6Personal Loan WEAKNESSES The weaknesses are: Some customers are not satisfied with the service of AXIS Bank

Only 48 branches all over India High insurance-period duration High premium Low awareness of AXIS Bank in rural areas

OPPORTUNITY The opportunities are: 1Huge opportunity in insurance market 2Better products as compared to other industries 3Due to increase in literacy rates, literate people prefer AXIS Bank 4AXIS Bank gives opportunity to other businesses to market THREATS The threats are: 1Tough competition from LIC, ICICI, BAJAJ ALLIANCE, and BIRLA SUN LIFE 2Due to low premium, rural markets prefer LIC 3Threat for AXIS Bank because over 12 new companies are entering the market 4Currently, AXIS Bank is the 3rd player in the market, and the major grow in the

threat is to sustain that position in the face of competition 5

RESEARCH FINDINGS AND ANALYSIS SURVEY FOR AWARENESS OF LIFE INSURANCE RESEARCH METHODOLOGY The technique of finding facts from raw data is known as sampling. SAMPLING: Sampling is simply the process of learning about the population on the basis of the sample drawn for it. Under this method, small group of the universe is taken as the representative of the whole mass and the results are drawn. It is a method to make social investigation practicable and easy. SAMPLE: A static sample is a miniature picture or cross section of an entire group or an aggregate from which the sample is taken. A sample is the reflection of the universe.

I have taken a total of 300 samples from the Jaipur population.

CLUSTER SAMPLING Under this method, the total population is divided into some recognizable sub-division which are termed as clusters and a simple random selection of these clusters is made and then the survey of each and every unit in the selected cluster is done.

PRINCIPLE OF CLUSTER SAMPLING The principles that are basic to cluster sampling are: 1Clusters should be drawn from a sample which is in tune with the cost and other limitations of the survey 2The number of sampling unit in each cluster should be approximately same Details about cluster sampling from the project: Age 25-35 35-45 45-55 55 & above No. of Samples 100 100 100 100

AREA OF SURVEY

Gopal pura Mod, Vasundra colony, Tonk patak, Adaresh colony, Ajmery Get, Johari Bazar, Bapu-bazar, Chada rasta,Etc.

CONTENTS OF SURVEY Awareness in Different Age Group Group 25-35 35-45 45-55 55 & above No. of Samples 100 100 100 100

Purpose of Insurance Group No. of Samples

Businessmen Government employees Private employees

100 50 50

Degree of Awareness in Different Gender of Society

Male Female

100 50

8.Questionnaire
QUESTIONNAIRE ANALYSIS AND INTERPRETATION
Q1. What is your age group?

According to the survey, maximum numbers of people belong to the age group of 18-25 years. So we can say that most of the respondents may be the priority customers.

Q2. What is your Occupation?

distribution of responders according to their occupation 30 no. of respnoders in a particular occupation category 25 20 15 10 5 0 va rious occupa tions (a) Business, 8 (c) Self Employed, 7 (d) others, 10 (b) Salaried, 25

The above graph shows the occupation of the sample respondents.50% of the respondents belong to the category of salaried employees.16% of the respondents are into Business. 14% of the responds are self employed and the rest 20% into other occupation.

Q3. Under which range your Household Income falls?

household inc ome range

(d) > 10lakhs 28%

(a) < 2 lakhs 4% (b) 2-5 lak hs 30%

(c) 5-10 lakhs 38%

The graph above depicts the household income range of the respondents. The income range of the maximum respondents lie in the 5-10 lakhs category whereas only 4% i.e. only 2 respondents income falls in the category of < 2 lakhs.

 Age Group 18-25 years i) Occupation

d istr ibu tio n o f o c cu pa tio n fo r th e a ge ca te g or y o f 18 -25 yr s

16 14 no. of responsers of age paritcular 18-25 yrs of age for particular occupation 12 10 8 6 4 2 0 (a ) B u s in e ss (b ) S ala ried (c ) S elf E m p lo y ed (d) ot h e rs oc c up a ti o n s a vi a l a b l e 2 4 7 14

In this age group, maximum no. of the respondents are salaried employees. Out of the total sample population, 7 respondents out of 27 are neither into job, nor business. They have either invested into the share or commodity markets or they are students. Out of 27, 4 respondents are self employed i.e. they have joined their family business. Remaining 2 respondents out of 27 in this age group are into business.

proportions of responders income level for the age group 18-25 yrs

(d) > 10lakhs 15%

(a) < 2 lakhs 7%

(c) 5-10 lakhs 37%

(b) 2-5 lakhs 41%

The above graph shows the income level of the respondents in the age group of 18-25 years. In this age group, maximum no. of respondents has an income in the range of 2-5 lakhs. 10 of out of 27 respondents in this age group has an income range between 5-10 lakhs. Around 20% of this age group has an income above 10 lakhs and the remaining 10% are below 2 lakhs

Distribution of Income for the Age group 25-35 yrs

0% 36% 27% <2 Lacs 2-5 lacs 5-10 lacs >10 Lacs

37%

Out of the sample population, 11 respondents are in the age group of 25-35 years. 37% of the total respondents in this age group have an annual income of 5-10 lakhs. 36% of the respondents i.e. 4 respondents annual income is above 10 lakhs. The remaining 27% of the respondents i.e. 3 of them have an annual income between 2-5 lakhs.

10. Bibliography/References
Books
Dr. I.M. Pandey- Financial Management, Vikas Publication Delhi M.Y. Khan P.K. Jain- Financial Management, Tata Mc Graw Hill Publishing company Limited, New Delhi

Websites
www.axisbank.com www.infinancials.com www.google.com www. axisbank.com/xmlapplication/aboutus/financials/images/ Annual -Report -2007.pdf