PREFACE

The 60 days Summer Internship Training program for an elaborate and practical study on selected topics related to Management is very vital for every management student .In this session I took training in Bank of Maharashtra., in loan section of that bank in which I got the chance to know the procedure by which bank lends money to its members. Since it is a cooperative bank so it gives loan to its members only, hence an applicant has to become member of this bank before borrowing money from it. This project work about the survey is a small piece of research work in various aspects of the training. While carrying out I got opportunities to interact with employees at various levels and the people who enhanced my practical knowledge and experience in regard to the topic. In this report I have shown the loans provided by the bank and its recovery procedure .I also include current facts and figures related to the topic.

DECLARATION
I hereby declare that the project title Maharashtra. Is submitted in Loan & Advance Management in Bank of degree

fulfillment

of Masters in Management Studies

of University of Mumbai in the academic year 2013-2014 was carried with sincere intention. The project period duration was form 04/05/2013 to 28/06/2013.To the best of my knowledge it is an original piece of work done by me and it has neither been submitted to any other organization nor published at anywhere before.

_________________________ (Mr. Vikram Vishvanath Bhopi)

Executive Summary
The report contains introduction to Banks, which includes past, present and future of banks and challenges for banking industry in future. Banks plays the most important role in providing various banking services. Earlier banks were engaged in accepting and lending money. But in the recent past the scope of services provided by the banks has increased. The growing competition requires prompt and efficient services to the customer sat reasonable cost. These days bank aim to provide maximum satisfaction to their customers. The next part of the report consist the knowledge about the cooperative banks in India. It includes history of cooperative bank in indianite features and service provided by it in rural and urban sector. The structure of cooperative bank in India is also includes in it. Then a brief introduction of BANK OF MAHARASHTRA comes in next part of the report which consist the history, management team and objective made by Chief Manager MR S. M. MOGHE. The current financial position of the bank also includes in this part. Then the meaning of certain terminology includes in this report .these terms are related with the topic for ex. cash credit, lease, secured loan etc. the objective of this section is only to make aware about certain terminology used by bank regarding loan facility. The next section of report i.e. training methodology consist title of report, duration of training session, objective and limitation of study etc. this section basically giving the outline of the report. Next section consist the loan and credit facility provided by bank. This section consist various loans provided by bank the detail regarding those loans, procedure to recover it, actual position of bank in loan area, and recommendation and the various proposals that the Cooperative bank could apply for maintaining its position in the region and to face future challenges and the suggestions for the improvement. Final section of report consist conclusion and bibliography.

Index
Chapter Nos.
Chapter 1 1. 2. 3. 4. 5.

Table of Contents
Introduction Objective of the study Scope of the Project Research Methodology Limitations of the Project

Chapter II

1. Bank Profile 2. Organization Chart 3. Benefits given by Bank

Chapter III

1. Theoretical Background. (Secondary data & Literature review) 2. Data Analysis & Interpretations

Chapter IV

1. Findings 2. Suggestions / Recommendations 3. Conclusion Annexure Bibliography

Chapter 1 1. Introduction
The term loan refers to the amount borrowed by one person from another. The amount is in the nature of loan and refers to the sum paid to the borrower. Thus from the view point of borrower, it is borrowing and from the view point of bank, it is lending. Loan may be regarded as credit granted where the money is disbursed and its recovery is made on a later date. It is a debt for the borrower. While granting loans, credit is given for a definite purpose and for a predetermined period. Interest is charged on the loan at agreed rate and intervals of payment. Advance on the other hand, is a credit facility granted by the bank. Banks grant advances largely for short -term purposes, such as purchase of goods traded in and meeting other short-term trading liabilities. There is a sense of debt in loan, whereas an advance is a facility being availed of by the borrower. However, like loans, advances are also to be repaid. Thus a credit facility- repayable in installments over a period is termed as loan while a credit facility repayable within one year may be known as advances. However, in the present lesson these two terms are used interchangeably.

2. Objective of Study at Bank of Maharashtra

Followings are the objective of the project 1) The objective was to do a detail study of bank like loan, NPA, E-payment etc 2) To understand how bank provide loan, how do E-payment, how provided service to customer & how collect NPA 3) To apply theoretical knowledge to practical use. 4) To understand the financial activity. 5) To Provide the detailed of different modes of lending along with the steps involved in the credit lendings. 6) To Provide the details of the Risks which are involved in the lendings

3. Scope of the Project

Followings are the scope of the project 1) Source of fund in Bank 2) Different ways of lending 3) Tools And Techniques for managing Loans 4) Guidelines for Loans 5) Risk involved in Loans 6) Describes the Risk Management

4. Research Methodology
As the objective of the project was to understand day to day transaction of the bank. The bank prepared its own credit policy & they give me chance to reading it. I also had opportunity to view various loan file & how to provided loan to customer as well as the give me opportunity of handle E-payment

Primary data
The instrument used for the primary data collection was interaction with bank

Secondary data
Journals, web site of the bank were use a secondary data collection. It gives me utmost pleasure to state that, I have got an excellent opportunity to work with Bank of Maharashtra. In Raigad district there is 23 branches.

5. Limitations of the Project

1) During the project duration, in such a short period it was very. 2) The project was costly & time consuming 3) Survey within the bank 4) During the project duration there was need of important document but they not handle 5) Bank could not provide the detailed information due to banks policy.

Hypothesis:
1] In few years increased deposit & loan 2] The ratio of deposit & loan is very better 3] Loan recovery is better 4] Charge reasonable interest rate on loan 5] Repayment duration of loan is Maximum 6] Loan sanction quickly

Chapter 2 1. Company Profile

Origin and History of Bank of Maharashtra Bank of Maharashtra was registered on September 16, 1935 with an authorized capital of Rs.10.00 lakh. The Bank actually began its process on 8th October 1936 in Pune, under the chairmanship of Shri. Dhondumama Sathe. Ever since its inception, Bank of Maharashtra is known as common man's bank. The Bank's initial help to small units has given birth to many of today's industrial houses. The present chairman of Bank of Maharashtra is Shri. Allen C.A. Pereira and consists of Board of Directors under whom the Bank functions. Bank of Maharashtra has its Head Office situated at Shivaji nagar in Pune, which is known as Lokmangal karyalay. Later on in the year 1946, it entered into Karnataka and started its first branch in Hubli. Bank of Maharashtra began to progress to a great extent and expanded its banking business all over India. It is amongst the top 14 nationalized banks in India. In July 1969, Bank of Maharashtra was nationalized along with 13 other banks. After nationalization, the Bank expanded rapidly and today its branch network comprises of 1375 branches and 30 extension counters spread over 22 states and 2 union territories (as of 31st March 2008). Bank of Maharashtra has the largest network of branches by any Public sector bank in the state of Maharashtra. Bank of Maharashtra attained autonomous status in 1998. It has helped the Bank in providing more and more services with simplified procedures without intervention of Government. Apart from providing loans, bank also offers personalized services to its customers. The Bank also cares to its employees and provides many facilities & schemes to them. Bank of Maharashtra has also come up with its shares in the market which is on a slower growth towards progress. Bank of Maharashtra has altogether 1500 branches all over India. The total turnover is 72000 crores, and is currently running in profits. Bank of Maharashtra excels in Social Banking, and it has 46% of its branches in rural areas. By March 2006 the Bank intends to achieve computerization of remaining 584 rural and semi urban branches by providing a cost effective small branch automation solution for rendering effective customer service to rural India. The Bank follows the philosophy of technology with personal touch.

Our Logo

o The Deepmal With its many lights rising to greater heights o The Pillar Our institution- Symbolizing strength o The Diyas Our Branches- Symbolizing service.

o The 3 Ms Symbolizing _Mobilization of Money _Modernization of Methods and _Motivation of staff

Our Aim

The bank wishes to cater to all types of needs of the entire family, in the whole country. Its dream is; "One Family, One Bank, Bank of Maharashtra

Organization Chart

Chief Manager

Mr. S. M. Moghe

Senior Manager

Ms. A. V. Sapre Mr. K. G. Nair Ms. A. V. Pednekar Ms. M. U. Joshi

Officer

Special Assistance

Cashier

Ms. S. A. Kulkarni

Peon

Mr. R.G. Patil

Mr. D. S. Hyalinge
Part Time

2. Benefits given by Bank

Followings Are Services Provide By Bank of Maharashtra o o o o o o o o o o o o o o Bank Deposits Lending Of Loan ATM Service Credit Cards DEMAT Services Bancs Bancassurance Distribution Of Mutual Fund Executors And Trustee Services Mahabill Pay Mahabank Insta Remit Scheme Capital Market Application(ASBA) NEFT MAHAeTRADE ( ON LINE Trading Facility)

Chapter 3 1. Theoretical Background (Secondary data & Literature review) Loans and Advances
The major part of the deposits received by banks is lent out, and a large part of their income is earned from interest on such lending. There is a considerable difference between the rate of interest which the commercial bank grants on deposits, and the rate they charge on loans and advances. It is this difference which constitutes the main source of bank earnings. Operation and expansion of business and commercial activities depend great deal on the availability of loans/advances from commercial banks. In this lesson, you will learn about the procedure of getting loans and advance, cash credits, overdrafts, etc from the commercial banks.

Utility of Loans and Advances

Loans and advances granted by commercial banks are highly beneficial to individuals, firms, companies and industrial concerns. The growth and diversification of business activities are effected to a large extent through bank financing. Loans and advances granted by banks help in meeting short-term and long term financial needs of business enterprises. We can discuss the role played by banks in the business world by way of loans and advances as follows a) Loans and advances can be arranged from banks in keeping with the flexibility in business operations. Traders may borrow money for day to day financial needs availing of the facility of cash credit, bank overdraft and discounting of bills. The amount raised as loan may be repaid within a short period to suit the convenience of the borrower. Thus business may be run efficiently with borrowed funds from banks for financing its working capital requirements b) Loans and advances are utilized for making payment of current liabilities, wage and salaries of employees, and also the tax liability of business. c) Loans and advances from banks are found to be economical for traders and businessmen, because banks charge a reasonable rate of interest on such loans/advances. For loans from money lenders, the rate of interest charged is very high. The interest charged by commercial banks is regulated by the Reserve Bank of India d) Banks generally do not interfere with the use, management and control of the borrowed money. But it takes care to ensure that the money lent is used only for business purposes. e) Bank loans and advances are found to be convenient as far as its repayment is concerned. This facilitates planning for future and timely repayment of loans. Otherwise business activities would have come to a halt. f) Loans and advances by banks generally carry element of secrecy with it. Banks are dutybound to maintain secrecy of their transactions with the customers. This enhances peoples faith in the banking system.

Borrowing Rate and Lending Rate

People make their funds available to the banks by depositing their savings in various types of accounts. In other words, bank funds mainly consist of deposits from the public, though banks may also borrow money from other institutions and the Reserve Bank of India. Banks thus mobilizes funds through its deposits. On public deposits he banks pay interest at and the rate of interest vary according to the type of deposit. The borrowing rate refers to the rate of interest paid by a bank on its deposits. The rates which the banks allow depend upon the nature of deposit account and the period for which the deposit is made with the bank. No interest is generally paid on current account deposits. The rate is relatively lower on savings account deposits. Higher rates ranging from 6% to 12% per annum are paid on fixed deposit accounts according to the period of deposit. Banks also borrow from other institutions as well as from the Reserve Bank of India. When the Reserve Bank of India lends money to commercial banks, the rate of interest it charges for lending is known as Bank Rate. The rate at which commercial banks make funds available to people is known as Lending-rate. The lending rates also vary depending upon the nature of loans and advances. The rates also vary according to the purpose in view. For example if the loan is sanctioned for the purpose of activities for the development of backward areas, the rate of interest is relatively lower as against loans and advances for commercial/business purposes. Similarly

for smaller amounts of loan the rate of interest is higher as compared to larger amounts. Again lending rates for consumer durables, e.g. loans for purchase of two-wheelers, cars,
refrigerators, etc. are relatively higher than for commercial borrowings. However, the Reserve Bank of India from time to time announces changes in the interest-rate structure to regulate the lending of funds by banks. Different rates of interest are prescribed for various categories of advances, such as advances to agriculture, small scale industries, road transport, etc. Graded rates of interest are prescribed for backward areas. Lower rate is normally charged from agencies selling food-grains at fixed price through Govt. approved outlets. Lastly, lower rate of interest is charged for loans granted to persons belonging to weaker sections of the society.

Lending of Money
The commercial banks lend money in four different ways: a) Direct loans, b) Cash credit, c) Overdraft, and d) Discounting of bills. These are briefly discussed below:

(I)Loans
Loan is the amount borrowed from bank. The nature of borrowings that the money is disbursed and recovery is made in installments while lending money by way of loan, credit is given for a definite purpose and for a pre-determined period. Depending upon the purpose and period of loan, each bank has its own procedure for granting loan. However the bank is at liberty to grant the loan requested or refuse it depending upon its own cash position and lending policy. There are two types of loan available from banks: (a) Demand loan, and

(b) Term loan

Demand Loan
Demand Loan is a loan which is repayable on demand by the bank. In other words, it is repayable at short-notice. The entire amount of demand loan is disbursed at one time and the borrower has to pay interest on it. The borrower can repay the loan either in lump sum (one time) or as agreed with the bank. For example, if it is so agreed the amount of loan may be repaid in suitable installments. Such loans are normally granted by banks against security. The security may include materials or goods in stock, shares of companies or any other asset. Demand loans are raised normally for working capital purposes, like purchase of raw materials, making payment of short-term liabilities.

Term Loans
Medium and long term loans are called term loans. Term loans are granted for more than a year and repayment of such loans is spread over a longer period. The repayment is generally made in suitable installments of a fixed amount. Term loan is required for the purpose of starting a new business activity, renovation, modernization, expansion/ extension of existing units, purchase of plant and machinery, purchase of land for setting up of a factory, construction of factory building or purchase of other immovable assets. These loans are generally secured against the mortgage of land, plant and machinery, building and the like.

(II) Cash credit

Cash credit is a flexible system of lending under which the borrower has the option to withdraw the funds as and when required and to the extent of his needs. Under this arrangement the banker specifies a limit of loan for the customer (known as cash credit limit) up to which the customer is allowed to draw. The cash credit limit is based on the borrowers need and as agreed with the bank. Against the limit of cash credit, the borrower is permitted to withdraw as and when he needs money subject to the limit sanctioned. It is normally sanctioned for a period of one year and secured by the security of some tangible assets or personal guarantee. If the account is running satisfactorily, the limit of cash credit may be renewed by the bank at the end of year. The interest is calculated and charged to the customers account. Cash credit, is one of the types of bank lending against security by way of pledge or / hypothecation of goods. Pledge means bailment of goods as security for payment of debt. Its primary purpose is to put the goods pledged in the possession of the lender. It ensures recovery of loan in case of failure of the borrower to repay the borrowed amount. In Hypothecation, goods remain in the possession of the borrower, who finds himself under the agreement to give possession of goods to the banker whenever the banker requires him to do so. So Hypothecation is a device to create a charge over the asset under circumstances in which transfer of possession is either inconvenient or Impracticable.

(III) Overdraft
Overdraft facility is more or less similar to cash credit facility. Overdraft facility is the result of an agreement with the bank by which a current account holder is allowed to draw over and above the credit balance in his/her account. It is a short-period facility. This facility is made available to current account holders who operate their account through Cheques. The customer is permitted to

withdraw the amount of overdraft allowed as and when he/she needs it and to repay it through deposits in the account as and when it is convenient to him/her. Overdraft facility is generally granted by a bank on the basis of a written request by the customer. Sometimes the bank also insists on either a promissory note from the borrower or personal security of the borrower to ensure safety of amount withdrawn by the customer. The interest rate on overdraft is higher than is charged on loan. The following are some of the benefits of cash credits and overdraft: i. ii. iii. Cash credit and overdraft allow flexibility of borrowing, which depends upon the need of the borrower. There is no necessity of providing security and documentation again and again for borrowing funds. This mode of borrowing is simple and elastic and meets the short term financial needs of the business.

(IV) Discounting of Bills

Apart from sanctioning loans and advances, discounting of bills of exchange by bank is another way of making funds available to the customers. Bills of exchange are negotiable instruments which enable debtors to discharge their obligations to the creditors. Such Bills of exchange arise out of commercial transactions both in inland trade and foreign trade. When the seller of goods has to realize his dues from the buyer at a distant place immediately or after the lapse of the agreed period of me, the bill of exchange facilitates this task with the help of the banking institution. Banks invest a good percentage of their funds in discounting bills of exchange. These bills may be payable on demand or after a stated period. In discounting a bill, the bank pays the amount to the customer in advance, i.e. before the due date. For this purpose, the bank charges discount on the bill at a specified rate. The bill so discounted is retained by the bank till its due date and is presented to the drawee on the date of maturity. In case the bill is dishonored on due date the amount due on bill together with interest and other charges is debited by the bank to the customers account.

Long-term and Short-term Loans

Commercial banks grant loans for different periods-long, short and medium term for different purposes.

(1)Short-term loans
Short term loans are granted by banks to meet the working capital needs of business. The working capital needs refer to financial needs for such purposes as, purchase of raw materials, payment of wages, electricity bill, taxes etc. Such loans are granted by banks to its borrowers to be repaid within a short period of time not exceeding 15 months. Short term loans are normally granted against the security of tangible assets like goods in stock, shares, debentures, etc. The rate of interest charged on short term loans ranges from 12% to 18% p.a.

(2) Term Loans

Medium and long term loans are generally known as term loans. These loans are granted for more than 15 months. In case of medium term loan, the period ranges from 15 months to less than 5 years. Medium term loans are generally granted for heavy repairs, expansion of existing units, modernization/renovation etc. Such loans are sanctioned against the security of immovable assets. The normal rate of interest ranges between 12% to 18% depending upon the period, purpose, nature

and amount of the loan. Though banks may grant long term loans, they avoid granting loan for more than 5 years.

Nature and Security of Loans

To ensure the safety of funds lent, the first and most important factor considered by a bank is the capacity of borrowers to repay the amount of loan; the bank therefore, relies primarily on the character, capacity and financial soundness of the borrower. But the bank can hardly afford to take any risk in this regard and hence it also has the security of tangible assets owned by the borrower. In case the borrower fails to repay the loan, the bank can recover the amount by attaching the assets. It can sell the assets offered as security and realize the amount. Thus from the view point of security of loans, we can divide the loans into two categories: (a) secured, and (b) unsecured. Unsecured loans are those loans which are not covered by the security of tangible assets. Such loans are granted to firms/institutions against the personal security of the owner, manager or director. On the other hand, Secured loans are those which are granted against the security of tangible assets, livestock in trade and immovable property. Thus, while granting loan against the security of some assets, a charge is created over the assets of the borrower in favors of the bank. This enables the bank to recover the dues from the customer out of the sale proceeds of the assets in case the borrower fails to repay the loan. There are various types of securities which may be offered against loans granted, but all of those are not acceptable to the banks. The types of securities generally accepted by the bank are the following: A] Tangible assets such as plant and machinery, motor-van, etc. B] Documents of title to goods, like Railway Receipt (R/R), Bills Of exchange, etc. C] Financial Securities (Shares and Debentures) D] Life-Insurance Policy E] Real estates (Land, building, etc). F] Fixed Deposit Receipt (FDR) G] Gold ornaments, Jewelers etc.

Procedure of granting Cash Credit, Overdraft and Discounting Bills

The banks provide financial assistance to its customers in the form of loans, advances, cash credit, and overdraft and through the discounting of bills. The procedure of applying for and sanction of loans and advances differs from bank to bank. However, the steps which are generally to be taken in all cases are as follow:

(I)Filling up of loan application form

Each bank has separate loan application forms for different categories of borrowers. When you want to borrow money from a bank, you will have to fill up a loan application form available with the bank free of cost. The loan application form contains different columns to be filled in by the applicant. It includes all information required about the borrower, purpose of loan, nature of facility (cash-credit, overdraft etc) required, period of repayment, nature of security offered, and the

financial status of the borrower. A running business limit may be required to furnish additional information in respect of: Assets and liabilities Profit and loss for the last 2 to 3 years. The names and addresses of three persons (Which may include borrowers, suppliers, customers and Bankers) for reference purposes.

(ii) Submission of form along with relevant documents

The loan application form duly filled in should be submitted to the bank along with the relevant documents.

(iii) Sanctioning of loan

The bank scrutinizes the documents submitted and determines the credit worthiness of the applicant. If it is found to be feasible, the loan is sanctioned. If the loan is for Rs 5000 or less, normally the Branch Manager himself can take the decision and sanction the loan. In case the amount of loan is more than Rs 5000, the application is considered at regional, zonal or head office level, depending on the amount of loan.

(iv) Executing the Agreement

When the loan is sanctioned by the bank and the borrower is informed about it, he will have to execute an agreement with the bank regarding terms and condition for the amount of loan raised.

(v) Arrangement of Security for Loan

The borrower will now arrange for security against the loan. These securities may be immovable properties, shares, debentures, fixed deposit receipts, and other documents, like, Kisan Vikas Patra, National Savings Certificate, as per agreement. When the borrower completes all the formalities, he is allowed to get the amount of loan/advance/ over draft as sanctioned by the bank. In case of discounting of bills, the bank credits the amount of bill to the customers account before the realization of the bill and thus, makes available the fund. In case, the bills dishonored on due date, the amount due on the bill together with interest and other charges are payable by the party whose bill is discounted.

Bank of Maharashtra loan process

Loan is an important factor of every bank. People need loan for various reason like Professional need loan for their profession Students need loan for their education. Bank provide loan to person after fulfill condition require for loan and collect interest from debtor. BOM has been providing various type of loan like vehicle loan, Home Loan Education Loan, Personal loan, as well as any kind of security against loan BOM charges reasonable interest again this loan The financial assistance by way of loan and advance can be extend only to a benefited member of the bank who is the either a regular or nominal member of the bank.

Financial assistance given to the member borrower is for a stipulated period in may be for a short term or a medium term, short term advance are repayable within 24 months, medium term loan/advance are repayable within 60 months and the long term loan/advance other than housing finance are repayable within 7 and more year advance sanction for housing are repayable within 15 year or as board of director may think fit and proper from time to time. Loan should be repaid by monthly or by quarterly installments or by half year installments as per sanction given by board of director in each specific case. The period of repayment should be decided by the board of directors Jr. and senior officer of the head office and branch manager taking into consideration the business, and repaying capacity of the borrower The Bank will work out the available disposable fund for lending a determine the period of repayment. If the board of director deem in fit and proper in case of standard assets regular loan bank may grant rebate in interest which will not exceed 1% PA in overdue case. The bank can charge interest at the rate not exceeding 2% over and above the rate of interest applicable on that particular loan. The bank has right to debit actual expenses on account of postage incident expand personal visit for verification etc. In case of default legal exp connected with recovery including advocate fees incidental charges etc will amount recovered from the borrower.

Bank make advance against following securities

The Bank makes advance against specific securities. The loan and advance are classified on the basis of securities that are offered by the borrower classification of loan as per securities is as under 1] Loan against personal security 2] Loan against warehouse receipt 3] Loan against pledge of security 4] Loan against hypothecation of goods 5] Loan against government and other trustee securities 6] Loan against pledge of share and debenture 7] Loan against bank fixed deposit receipts 8] Loan against pledge of LIC 9] Loan against pledge gold silver and jeweler 10] Loan against mortgage of land and building 11] Loan for purchase of vehicles against hypothecation of vehicle 12] Housing loan against mortgage of said flat, building plot and constructed thereon

13] Loan to small scale industries against securities of goods building plant and machinery raw material and finish goods etc. 14] Loan against the letter of undertaking given by the employer to deduct the amount of installment from the salary/wages to sent complete salary/wages to the bank till the total repayment of the loan/advance 15] Loan against any other securities approved by board of director 16] Unsecured loan and clean cash credit up to 200000 and duly approved by the board of director 17] Loan constructed against actual stock vise cement steel and bricks and tripartite agreement among bank contractor and borrower 18] Loan to builder and developer against collate red securities and tripartite agreement among builder /developer contractor bank and borrower. 19] Advance against from work order/firm contract from Gove dept Gove bodies and corporation and other LTD company of good standing approved by board. 20] Education loan 21] In short, bank can give financial accommodation to the borrower by way of loan and advance against securities mention above and any other securities accepted to the bank.

Loan are granted generally following purpose

1) 2) 3) 4) 5) 6) 7) 8) For trade business for purchase machinery etc. Construction and repair of dwelling house. Purchase of consumer durable goods/domestic goods. For education expenses. For commercial expenses/medical expenses. For repair renovation of business premises. For repayment of debts. For working capital for small scale for commercial project. 9) For any other purpose which result into productivity

and

cottage

industries

Total unsecured loan and advance as per extant RBI guidelines will not exceed of TDL Ceiling on advance to nominal member The ceiling for granting advance to nominal member will be Rs 2 Lac as per order 16/10/2007 of the RCS approving amendment to the bylaw 10 nominal member to the affect.

Margin
Loan and advance are given against specific securities which are value and correct with reference to market price. Financial assistance is granted by maintain reasonable margin therefore considered as safety cushion Personal securities Quantum of loan will be decided with reference to repaying capacity/payment of wages 25 % of value of goods 25 % of value of goods 25 % face value of the securities 50% of face value or market value of the share/debentures whichever lower 20% of valuation of gold 20% of the valuation of approved valuer 20% of the valuation of approved valuer 30% of the valuation of approved valuer 20% of the bill 25% of the quotation 50% of the valuation of government approved valuer 25% of the quotation 50% of the valuation of government approved valuer 50% of the valuation of government approved valuer

Loan against pledge of goods Hypothecation of goods Government and trustee securities share/debentures Gold silver jewelry Land and building(new) Old (up to 10 year) (10 to 15 year) Government supply bill inward bill etc Plant and machinery (new) Plant machinery (old) Vehicle New Old (Old) vehicle up to 5 year

Deduction the home salary should be not less than 33.33% of gross salary

Agriculture Loan
Bank also provide Agriculture loan to customer for purchase agricultural equipments, with little help from us, we offer several agricultural loans as per their requirement, they are as follows_

1] Mahabank Kisan Credit Card Purpose: Cultivation of crops meeting the short-term credit needs of farmers for crop production and allied activities etc. maintenance of farm equipments etc. Eligibility: Agriculturist who owns agricultural land Amount: As decided by district technical committee & limit worked out for the purpose. Security: Mortgage of land. Hypothecation of crop/ Assets. Repayment: Revolving credit facility for 3 years. Coinciding with harvesting of cropsseason/marketing of produce. Other Terms & Conditions: Assured and timely availability of working capital for crops cultivation. Borrowers are covered under personal accident insurance scheme.

2] Minor Irrigation for Agriculturists Purpose: Digging of new wells, revitalization of existing well, purchase of oil engine, electric motor, pump set installation of pipe line, sprinkler, irrigation, drip irrigation, tube well, bore well, etc. Eligibility: Agriculturist who owns agricultural land. Amount: for new dug well as per NABARD unit costs for equipments/estimates. Security: Mortgage of land, Hypothecation of movable assets and guarantors. Repayment: Depending upon the repaying capacity 7to11 years. Other Terms & Conditions: Proposed well should be located in white watershed area. It should not be in dark watershed area.

3] Farm Mechanization for Agriculturists Purpose: Purchase of Tractors/ Power tillers, Purchase of Harvesters, Purchase of Threshers & other farm implements Eligibility: Agriculturist who owns at least 8 acres of Irrigated land, the Tractor should get at least 1500 hrs of work in year. Amount: As per cost of machinery.

Security: Hypothecation of Tractor/ trolley and accessories, Mortgage of land. Repayment: 7 to 9 years. Other Terms & Conditions: Comprehensive insurance of machinery with bank clause.

4] Animal Husbandry Purpose: Purchase of Cows/ Buffaloes, Poultry-Broiler farm, Layers farm, Hatchery sheep/ Goat Rearing, Construction of Byre, Purchase of Machinery working capital Requirements. Eligibility: Agriculturist, Agri-Labour and / or those who have necessary expertise. Amount: Animal cost As per NABARD unit costs, other As per the project. Security: Hypothecation of Animals/ Plant Machinery to be Purchased Mortgage of Land. Repayment: 4 to 5 years with suitable installments. Other Terms & Conditions: Insurance of all animals is essential.

5] Horticulture Purpose: Cultivation of fruit crops- mango, pomegranate, Grapes, etc. Eligibility: Agriculturist with adequate provision of irrigation Amount: As per NABARD Unit cost/ Project Security: Mortgage of Land, Hypothecation of crops. Repayment: Within 15 Years.

6] Scheme for Financing Up of Agri-clinics and Agri-Business centres for Agriculture graduates Purpose: Setting up of Agriclinics, Setting up of Agribusiness Centers. Eligibility: Agriculture graduates Amount: Individuals Max. Rs 10 lakh, Group Rs 50 lakh Security: Hypothecation of Assets created out of bank loan, Mortgage of land. Repayment: 5 to 10 years 7] Scheme for Financing Farmers for Purchase of Land

Purpose: Purchase of land Eligibility: Small and Marginal Farmers, share croppers/ Tenant Farmers. Amount: Maximum Rs 15 lakh Security: Mortgage of land, Hypothecation of crop/ Assets. Repayment: As per the repaying capacity and incremental income. Other Terms & Conditions: Total land holding including proposed land should not exceed 5 acres. 8] Scheme for Financing Two Wheelers to Farmers Purpose: Purchase of two wheeler. Eligibility: Net annual agile Income above Rs 50,000/- or 5 acres of irrigated land. Amount: Max. Rs 50,000/Security: Hypothecation of Asset. Repayment: 3 to 5 years.

9] Consumer Loans to Farmers Purpose: Purchase of consumer durables. Eligibility: Net annual Argil. Income above Rs 50,000/- or 5 acres of irrigated/ 10 acres seasonally irrigated land. Amount: Max. Rs 50,000/- , for four wheelers Max. Rs 2 lakh. Margin: 10% Security: Hypothecating of assets. Repayment: 3 to 5 years. 10] Hi-tech Projects Purpose: Hi-tech projects. Eligibility: Agriculturist with knowledge of advance techniques in the farming. Amount: As per the project cost. Security: Hypothecation of goods other collateral security. Repayment: 6 to 8 years.

Vehicle loan Personal vehicle Loan

Bank also provide loan to customer for purchase personal o vehicle. Turn your dream into reality own that new car always desired, with a little help from us we offer car loan up to 80% of exshowroom of the car our interest rate pleasantly surprise you can take up to 5 year to repay the loan. Target Group Salaried Class, pensioners, professionals, self-employed business persons & other individuals who have regular income

Loan on the strength of your income:

Submit income proof as required and avail finance up to 80% of the ex-showroom price car loan with fixed interest rate Bank of Maharashtra offer new car loan with fixed interest opportunity

Interest Rate for vehicle loan is as following

New two/ four wheeler personal use 10.50% New two/ four wheeler personal use up to Rs 5 lakh 10.50% Up to Rs 2 lakh (old vehicle) 10.5

Commercial vehicle loan

Every business person need commercial vehicle for their business they cannot raise such finance quickly, BOM provided Commercial vehicle loan large scale. BOM has extended products like founding of new vehicle, finance of used vehicle, top up on existing loan. Working capital loan and other banking product If we reach more than 180 locations across the country range of product under an umbrella funding for truck, buses, tippers light commercial vehicle and small commercial vehicle. Product

including for new vehicle finance on used vehicle and top up on existing loan Preferred financier status with all leading manufacturers simple documentation processes. Quick turnaround time Flexible financing solution to meet individual requirement to help you with your dream of owning a BOM commercial vehicle. we provide sever customized financial option from the range of BOM commercial vehicles now purchase your own through a quick and simple loan process. We also extend financial assistance for buying second hand vehicle. For all dealers BOM has special trade advance and facility in place. The condition and market value of the vehicle of the key factor in determined the credit approval and the quantum of finance.

For new commercial vehicles

Utmost flexibility of selecting a finance scheme that suits our need Speedy delivery of vehicle after the initial payment and the submission of all necessary documents maximum finance provided 80% of chassis cost.

Loan Amount
80% of Invoice Value + Registration Charges + Insurance

For old vehicle

Quick against vehicle that that is up to 5 year old. Maximum tenure of up to 60 months maximum finance provided is 50% of the value as assessed by BOM.

Interest Rate for vehicle loan is as following

New vehicle (commercial use) 10.50% Above Rs 2 lakh (old vehicle) 13%

Loan Amount for old vehicle

50% of Agreement value or valuation whichever is less

Bank has to fulfillment following document Vehicle loan

A] Agreement bond B] Demand promissory note C] Letter of continuity (whenever necessary) D] Delivery letter E] Road tax &insurance receipt F] Letter of authority from the borrower addressed to the concerned RTO countersigned by the borrower for transfer of vehicle favor of the bank G] Letter of hypothecation creating a charge in respect of hire vehicle

H] Registration certificate (i.e. R C book) I] comprehensive insurance policy in respect of vehicle duly assess in favor of bank J] Valuation report of vehicle in case of old vehicle K] Bank transfer (RTO) duly signed by the borrower

Security
Vehicle & Salary/Income

Repayment
Maximum 5 years

Gold loan

Bank Of Maharashtra provided gold loan to customer large scale. Customer has to secure their gold to bank and also submit some related document and bank sanction this loan without guarantor and provided this loan for one or two year. This is quick loan process. Bank gives 75% loan of total valuation of gold. After accepting the gold from customer bank it send to valuation to approved value and bank make fulfillment of some related document.

Bank has to fulfillment following document to gold loan

A] Agreement bond/hypothecation deed B] Demand promissory note C] Lodgment letter i.e. delivery letter D] Appraiser certificate E] Declaration of ownership F] Letter of lien and set off

Interest Rate for gold loan is as following

For Agriculture loans: A) for loans eligible under inters subvention scheme: 7% p.a. at present B) For other Agricultural loans: As per applicable rate of interest

For loans other than agriculture:A) for senior citizen: Base rate + 2.25% B) For others: Base rate +3.00%

Particular document to be submitted to customer

B] Payment receipt or income tax return file C] Guarantors payment receipt or income tax return file D] Proof of residence: Xerox copies of Ration Card or Voters Identity Card or Passport or Electricity or Telephone or any such document acceptable to the bank

bill

Housing Loan

Housing loan also provided by Bank of Maharashtra largely. Usually bank provided this type of loan long thermally and against mortgage of said flat, building plots and constructed thereon. Bank of Maharashtra Bank Home Loan schemes are provided both to the resident and non-resident Indians thereby helping them work towards realizing their dream to own a home. The Bank of Maharashtra home loans are offered keeping in mind the individual needs and requirements of people wishing to buy/construct a house of their own. Loan applicants with a steady and consistent source of allowance can apply for Indian Bank housing loans Target Group: The target group is the salaried class, professionals, Self-employed & business-men. Banks fix the age criteria for availing the loan. Purpose: The purpose of housing loan is for the Construction or Purchase of House or Flat or Apartment, repairs & renovation of house. Eligibility: Age: Minimum 21 Years i. ii. iii. 60 years in case of salaried persons having Pension. 60 years for Businessmen. 65 years for professionals i.e. Doctors/ Architects/CAs/ Engineers/Lawyers/CS/CWA, etc. *Age Maturity of Loan should not be more than 75 years.

Amount of Home Loan

The quantum of home loan offered by Bank of Maharashtra for salaried class 60 times of gross or70 times of net monthly salary whichever is higher subject to applicable margin. The applicant can also add the income of the spouse in order to get a home loan of a larger amount. The total income left after EMI and other deductions should not exceed 65% of gross monthly salary / annual income

Home Loan Disbursement

The bank offers lump sum home loan amount in case the loan applicant goes for purchasing an already existing house or a flat.

Repayment Tenure: The bank has prescribed a loan repayment period of 20 years (including holidays) in case of buying or constructing a house or a flat on floating interest rate method. The home loan repayment period prescribed by the bank on fixed interest rate scheme lasts to 10 years.

Home loan Rates

The rates of interest offered On Bank of Maharashtra Home Loan are offered on two types of interest rate schemes - Floating Interest Rate, Fixed Interest Rate. The interest rate on home loan keeps on changing according to the movements of the market. The current fixed interest rate on BOM Bank Housing loan for a loan amount of up to Rs 25 lakh is charged at the rate of 10.25% for 5 years and Rs25 lakh up to 30 for above 5 to 10 year 10.25% and the same on a home loan amount of over Rs 30 lakh up to Rs 75 lakh is charged at the rate of 11% for 5 year to 10 year Security: The property purchased or constructed out of the bank loan is taken by way of mortgage. Guarantor: In home loan, Guarantor is most important.

Bank has to fulfillment following document to housing loan

A] Sales deed B] Builder NOC C] Society NOC D] Agreement bond/hypothecation deed E] Demand promissory note F] Letter of lien and set off

Particular document to be submitted to customer

A] Payment receipt or income tax return file B] Guarantors payment receipt or income tax return file C] Proof of residence, Pan card Xerox

* Xerox copies of Ration Card or Voters Identity Card or Passport or Electricity or Telephone bill or any such document acceptable to the ban

Securitization Act: Under the Securitization Act 2002, house is mortgage for the bank up to repayment of loan. Suppose the customer cannot repay loan for the given/available period the bank can sold this house & recover their dues. Property Insurance: Bank does the general insurance/property insurance of the tenure of loan & cost of the property. The building financed has to have an insurance policy against the risk of fire, earth quake, floods, etc. These days, banks are insisting on the insurance on the life of the borrower so as to cover the loan amount by paying a onetime premium.

Loan against fixed deposit

This is also an important source of loan. Those customers keep their certain many toward fixed deposit they can apply for this loan. This is easy loan process of bank customer has to keep secured their fixed deposit certificate. Bank charge 1% extra interest to kept fixed deposit e.g. depositor has kept Rs 100000 toward fixed deposit for one year and one year interest rate is 9.00% then bank will sanction loan with interest rate @ 10.00%.

Amount of fixed deposit Loan

The quantum of FD loan offered by BOM Bank amounts to around 90% of total FD amount

FD Loan Disbursement
The bank offers directly whole amount of FD loan.

FD loan Rates
The rates of interest offered on BOM Bank FD Loan are offered up to 1 lakh deposit rate+1%

Bank has to do realization of following document

A] Application for advance (indicating paper) B] Delivery letter C] Demand promissory note D] Letter of continuity (wherever necessary) E] Deposit receipt duly discharged by borrower F] Letter of lien and set off

In case of recurring deposit

A] Relative pass book B] Written authority from the account holder

Loan against insurance policy (LIC/NSC)

Now a day every person (individual organization) takes insurance policy for their life securities from approved institute. It has to pay some monthly or quarterly installment and they get benefit in such policy after bad occurred with particular person or institution. This is a common benefit of LIC and other benefit is loan we can get loan against LIC. Bank of Maharashtra provided loan against LIC largely. Customer has to submit their LIC policy certificate and bank make valuation this policy from approved valuer and

Amount of insurance policy Loan

The quantum of insurance policy loan offered by Bank of Maharashtra amounts to 75% of total valuation of policy and customer has to pay monthly installment

Bank has to do realization of following document to loan against insurance policy

A] Application for advance (indicating purpose) B] Delivery note C] Demand promissory note D] Letter of continuity (wherever necessary) E] Letter of lien and set off F] Insurance policy (with assignment record thereon) G] Deed of assignment (if not assigned by endorsement)

Particular document to be submitted to customer

A] Insurance policy certificate B] Payment receipt or income tax return file C] Guarantors payment receipt or income tax return file D] Proof of residence: Xerox copies of Ration Card or Voters Identity Card or Passport or Electricity or Telephone bill or any such document acceptable to the bank

Education Loan

Bank of Maharashtra provides convenient educational loans for meritorious/deserving students to acquire knowledge and skill in the field of their interest. By playing beacon, new-generation's quest for success is ably supported, paving way for Generation Banking

Eligibility
The applicant should be an Indian National. He / She should have secured admission to professional / technical courses in India or abroad through Entrance Test / Merit based selection process

Purpose
To meet the cost of education covering fee payable to college / school / hostel, exam fees, purchase of books / equipment's, travel expenses / passage money for studies abroad, purchase of computers essential for completion of the course etc. Caution Deposit, Building fund/ refundable deposit supported by institution bills/receipts, subject to a maximum of 10% of total tuition fees for the entire course. Insurance premium for student borrower

Course in study Studies in India

Diploma/Graduation/Post-graduation courses in various disciplines. Computer certificate courses of reputed institutes accredited to The Department of Electronics

Studies Abroad
Job-oriented professional/technical courses offered by reputed universities MCA, MBA, MS etc.

Maximum permissible amount of loan

For Studies in India - Rs.10.00 lakh For Studies Abroad - Rs.20.00 lakh

Rate of interest
Up to Rs.4.00 lakh (base rate + 2.00 %) Above Rs.4.00 lakh_ (base rate + 2.75 %)

Securities
Above Rs. 4.00 lakh to Rs. 7.50 lakh_ satisfactory third party guarantee Above Rs. 7.50 lakh _ Value of collateral security after providing requisite margin as below should be equal to the quantum of finance plus 2 acceptable guarantors.

Computers purchased out of loan hypothecated. Margin_ up to Rs. 4.00 lakh Nil Above Rs .4.00 lakh_ 5 % for studies in India 15% for studies abroad

Particular document to be submitted for education loan

Si no 1 Particular Proof of residence Studies in India Xerox copies of Ration Card or Voters Identity Card or Passport or Electricity or Telephone bill or any such document acceptable to the bank Copy of the 10th std / 12th std mark list, for under graduates. Degree mark list/provisional certificate for post graduates SSLC/TC/Mark list Community Certificate Salary certificate/Pension certificate/Auditor's certificate in case of business category/IT return filed/any other proof for the income stated Admission letter/Bonafied student certificate from the College/University 6 Fee structure Letter/Certificate from the College/University Studies in abroad Same as in Col.3 Same as in Col.3 Same as in Col.3 besides Passport Same as in Col.3 Certificate/I 20 from the College/Univers ity Certificate/I 20 from the College/Univers ity

Academic record

a. Date of birth/age b. Community (for statistical purpose only) Family Income

Admission

7 8 9

Passport/VISA Guarantee/Co-obligation Collateral, wherever required

Not applicable Parent's/Guardian's Co-obligation to be furnished LIC policy (surrender value of which should be not less than the loan amount at the time of availing the loan) /Share certificates/Units of UTI etc. Valuation certificate from Bank's approved panel values and legal opinion from Bank's panel advocate in case of land/buildings. Details regarding source of funds for meeting the margin furnished along with documentary evidence

Copies to be enclosed Same as in Col.3 Same as in Col.3

10

11

12

Margin (Above Rs.4.00 lakh) For studies in India: 5% For studies abroad: 15% Declaration/affidavit stating that no Educational Loan is availed from any other bank by the applicant and his parent Documents to be enclosed

Same as in Col.3

To be submitted

To be submitted

A & L of the student/parent/guardian/guarantor Details of securities in Col.9

Same as in Col.3

Term / Cash Credit Loan for Corporate

Bank of Maharashtra provided cash credit loan to reliable customer because this loan is unsecured usually bank provided this loan to purchase working capital or any other business equipment with reasonable interest rate and maximum installment.

1] Term loans:
Repayment in investment over a fixed Time. Purpose: for acquisition of fixed assets/ machinery or for financing projects. Amount of Loan: Generally 75% of the cost of maintaining a margin of 25%. Rate of interest: Base rate: 10.25% (With effect from 09.02.2013) BPLR: 15.00% (With effect from 01.10.2011) Security: Charge on assets. Term Loan Purpose: For the acquisition of fixed assets / machinery

Security: Hypothecation of Fixed Assets Repayment: Maximum repayment period is 3 7 Years

2] Cash Credit:
Running account facility. Purpose: To meet working capital requirements. / Day-to-day working Amount of Facility: Base upon the Banks assessment of the working capital requirement. Security: Hypothecation of Stock Monthly Stock Statement & Receivable Statement Charge on current assets. Collaterals if required. Repayment: Rate of Interest: Base Rate: 10.25% (With effect from 09.02.2013) BPLR: 15.00% (With effect from 01.10.2011) Maximum repayment period is up to 12 months i.e. 1Years on renewable basis

3] Bill Discounting:
In The Nature of Post Sales Limit. Amount of facility: Generally up to a specified percentage of the value of the bill. Discounting Under: L/C or firm order. Rate of interest: Base rate: 10.25% (With effect from 09.02.2013) BPLR: 15.00% (With effect from 01.10.2011) Security: Charges on the bill, collateral if required.

Bank has to realization of following document

A] Agreement bond B] Demand promissory note C] Letter of continuity (whenever necessary)

D] Delivery letter E] Letter of pledge

Particular document to be submitted to customer

A] Income tax return file B} Guarantors payment receipt or income tax return file C] Proof of residence: Xerox copies of Ration Card or Voters Identity Card or Passport or Electricity or Telephone or any such document

bill

Professional loan
every person need a many to whatever purpose either he is more reaches or not he cannot rise more finance quickly so they need help any other financial institute i.e. Bank Of Maharashtra provided also loan to professional like doctor, advocate, Arc ,Eng, & CA. with reasonable interest rate Purpose
: To purchase equipment /

Rate of Interest

Eligibility

Loan Amount Margin

: :

repairs / renovation to existing equipment / parches of tool, working capital requirements, business premises. Base rate: 10.25% (with effect from 09.02.2013) BPLR: 15.00 % ( With effect from 01.10.2011) Doctors, Dentist, Chartered Accountants, Cost Accountant, Lawyers, Solicitors, Engineers, Architects,etc As per requirement 25%, this can vary according to requirement and assessment.

Bank has to do realization of following document

A] Agreement bond B] Demand promissory note C] Letter of continuity D] Delivery letter E] Letter of pledge F] Certificate of profession

Particular document to be submitted to customer

A] Payment receipt or income tax return file B] Guarantors payment receipt or income tax return file C] Proof of residence: Xerox copies of Ration Card or Voters Identity Card or Passport or Electricity or Telephone bill or any such document acceptable to the bank

TYPES OF BUSINESS LOANS

Every business proprietor need finance to run or expand their business but business proprietor cannot rise quick finance quickly they want to be help from financial institute, Bank of Maharashtra provided loan to business largely with reasonable interest rate an maximum installment. Bank gives this loan against specific securities

I. II. III. IV. V. VI. I.

Manufacturing Industry Loans Service Industry Loans Retail Business Loans Transport Business Loans Professional Loans Real Estate (Construction) Loans MANUFACTURING INDUSTRY LOANS

Term Loan Purpose: For the acquisition of fixed assets / machinery Security: Hypothecation of Fixed Assets Repayment: Maximum repayment period is 3 7 Years Working Capital / Cash Credit Purpose: For the working capital requirement / day-to-day working Security: Hypothecation of Stock, Monthly Stock Statement & Receivable Statement

Repayment: Maximum repayment period is up to 12 months i.e. 1Years on renewable basis II. SERVICE INDUSTRY LOANS

Term Loan Purpose: For the acquisition of fixed assets / machinery Security: Hypothecation of Fixed Assets Repayment: Maximum repayment period is 3 7 Years Working Capital / Cash Credit Purpose: For the working capital requirement / day-to-day working Security: Hypothecation of Receivables Repayment: Maximum repayment period is up to 12 months i.e. 1Years on renewable basis (Monthly Statement of Receivables is insisted upon according Drawing Power is calculated.)

III.

RETAIL BUSINESS LOANS

Term Loan Purpose: For the purchase of fixed assets like machinery, premises, Furniture, etc Security: Hypothecation of Fixed Assets Repayment: Maximum repayment period is 3 7 Years

Working Capital / Cash Credit Purpose: For the purchase of stock Security: Hypothecation of Stock Repayment: Maximum repayment period is 12 months i.e. 1Years on renewable basis (Monthly Stock Statement is provided by borrower & accordingly, Drawing Power is stipulated.)

IV.

TRANSPORT BUSINESS LOANS

Term Loan Purpose: For the acquisition of Vehicles Security: Hypothecation of Vehicle Repayment: Maximum repayment period is 3 7 Years

V.

PROFESSIONAL LOANS

Term Loan Target Group: Doctors, Engineers, Architectures, Chartered Accountants, Tax Consultants, Advocates, etc. who have regular income Purpose: For the acquisition of Vehicles; Office Renovation; purchase of fixed assets like office furniture, machinery, etc Security: Hypothecation of Fixed Assets

Repayment: Maximum repayment period is 3 7 Years VI. REAL ESTATE (CONSTRUCTION) LOANS

Term Loan Purpose: For the acquisition of fixed assets Security: Hypothecation of Fixed Assets Repayment: Maximum repayment period is 3 7 Years Working Capital / Cash Credit Purpose: For the working capital requirement / day-to-day working & for the purchase of Stock Security: Hypothecation of Stock Repayment: Maximum repayment period is 12 months i.e. 1Years on renewable basis In all the Business loans, Additional security is considering the risk factor. Bank insists additional security i.e. collateral security just like paper security or mortgages of property. Property security includes Fixed Deposits of Bank & LIC Policy.

Bank has to realization of following document

A] Agreement bond B] Demand promissory note C] Letter of continuity (whenever necessary) D] Delivery letter E] Letter of pledge F] Security document

Particular document to be submitted to customer

A] Income tax return file B} Guarantors payment receipt or income tax return file C] Proof of residence: Xerox copies of Ration Card or Voters Identity Card or Passport or Electricity or Telephone or any such document acceptable to the bank

bill

Rate of interest
Up to Rs 25 lakh Rate of interest (w.e.f.09.02.2013) bas rate + 0.50% (10.75%) Above Rs 25 lakh up to Rs. 1 crore interest rate Base rate + 2.00% (12.25%) Above Rs 1 crore up to Rs 5 core interest rate Base rate + 3.00% (13.25%)

Loan per objective basis for the year ended 31 march (1st Quarter April to June) 2013

No 1 2 3 4 5 6 7

Reason Cash credit TL Self employment Education Loan against fix assets House hold or other House repair Total

Total loan holder 1 2 1 2 2 10 1 19

Total amount Rs in lakh 65.00 47.90 2.15 22.00 6.40 146.6 6 296.05

% 21.95 16.18 0.72 7.43 2.16 49.53 2.03 100

% loan

CC TL SE EDU LAD HUS HUSR

Income Statement of Bank of Maharashtra (Kharghar)

For the Year Ended 31st Mar 2013 (Rs. In Thousands) PARTICULARS INCOME Interest Earned Other Income TOTAL EXPENDITURE Interest Expended Operating Expenses Provisions & Contingencies TOTAL Loss (-) for the year Appropriations Transfer to Statutory Reserves Transfer to Other Reserves Transfer to Government TOTAL 15 16 37670 2098 XXXXX 39768 49244 XXXXX XXXXX XXXXX 49244 41105 2534 XXXXX 43639 32580 XXXXX XXXXX XXXXX 32580 13 14 83814 5199 89013 69419 6800 76219 Schedule 31st Mar 2013 31st Mar 2012

Balance Sheet of Bank of Maharashtra (Kharghar)

As on 31st Mar 2013 (Rs. In Thousands) PARTICULARS LIABILITIES Capital Reserve & Surplus Deposits Borrowings Other Liabilities & Provisions TOTAL ASSETS Cash on hand and Balance with Reserve Bank of India Balances with Banks & Money at Call and Short Notice Investments Advances Fixed Assets Other Assets TOTAL Contingent Liabilities Bills of Collection Significant Accounting Policies Notes on Accounts 1 2 3 4 5 XXXXX XXXXX 56706 165965 733571 XXXXX XXXXX 439638 84479 524117 Schedule 31st Mar 2013 31st Mar 2012

6 7 8 9 10 11 12 17 18

6438 XXXXX 773588 625 2165 782816 63812 35 XXXXX XXXXX

2763 XXXXX 552906 580 448 556697 552906 8 XXXXX XXXXX

Data analysis

Bank of Maharashtra Deposits and Loan for last 5 Year For the Yearend 31st March (Rs in crore) On the basis of questionnaire a detailed data collection was done and analyzed. All analysis detail are provided in annexure in the letter part of report

Sr. no. 1 2 3 4 5

Year ended 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

Deposits 22,87.30 48,28.69 31,31.18 43,96.38 56,76.06

Loan 732.47 1882.19 3518.64 5529.05 77,35.87

9000 8000 7000 6000 5000 4000 3000 2000 1000 0 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Deposit Loan

Bank of Maharashtra (Kharghar) Progress Report for Last 5 Year Year ended 31st March (Rs in crore)

Sr. no
1 2 3 4 5

Year
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

Profit
63.86 92.16 191.67 325.80 492.45

600 500 400 300 200 100 0 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

PROFIT

Chapter 4 Findings
1] The data in the tables have clearly shown that how the bank of Maharashtra has consistently increased its profit by managing its credit but the bank needs to deploy its credit in a more diversified manner which will minimize the risk of losses and also increase the profit of the bank. 2] The overall inference from the table and chart is that the retail finance of bank of Maharashtra is healthy as compare to other nationalized banks. But it needs to be brought up in order to sustain the financial position of the bank. 3] Efforts are to be oriented towards verifying and processing the loan request. In case of deposits, an added advantage available to the bank is to improve clientele base but in case borrowings such an advantage does not exist, so the bank must work out some effective strategies for their loan products in order to make the clientele base for borrowings. 4] Raising individual membership, mobilizing more low-cost deposits and avoiding high-risk borrowings are the strategies which could be followed by the bank to improve its efficiency, market share, productivity and profitability.

Conclusion
Risk taking is a necessary condition for wealth creation. Risk arises as a deviation between what happens and what was expected to happen. Banks are no exception to this phenomenon. As a result managements have to create efficient systems to identify measure and control risk and ALM is just one component of the overall cluster.

1] Bank deposit- loan ratio is very well in 2008-2009 the deposit of bank was Rs 22, 87.30 crore i.e.75.47% & loan was Rs 732.47 i.e. 24.26 % 2] Bank deposit- loan ratio is very well in 2009-2010 the deposit of bank was Rs 48, 28.69 crore i.e. 71.95% & loan was Rs 1882.19 i.e. 28.05 % 3] Bank deposit- loan ratio is very well in 2010-2011 the deposit of bank was Rs 31, 31.18 crore i.e. 47.09% & loan was Rs 3518.64 i.e. 52.91 % 4] Bank deposit- loan ratio is very well in 2011-2012 the deposit of bank was Rs 43, 96.38 crore i.e. 44.29 % & loan was Rs 55, 29.05 i.e. 55.71 % 5] Bank deposit- loan ratio is very well in 2012-2013 the deposit of bank was Rs 56, 76.06 crore i.e. 42.32 % & loan was Rs 77, 35.87 i.e. 57.68 % Bank charge reasonable interest on loan & giving appropriate interest on customer deposit & bank give maximum duration to repayment of loan as well as provide loan quickly

Recommendation
1] Loan should be given from bank @ 60% or more of total deposit 2] Interest to be given on deposit should be more therefore customer will attract to bank result in increase deposit 3] Interest to be charge on loan should not be more therefore customer will attract to bank result in increase in profit

ANNEXURE
List of Abbreviations

ATM GOI RBI NPA BOM NP HTM HFT AFS CVC KYC MSME RRB LIC SLBC SMES NBC RDC NGO NEFT RTGS CBS IPO MSETI STP NABARD EDPS MIS LRM ALCO TIBD CRRF

Automated Teller Machine Government Of India Reserve Bank Of India Non-Performing Assets Bank Of Maharashtra Net Profit Held to Maturity Held For Trading Available For Sale Core Vigilance Committee Know Your Customer Micro ,Small ,And Medium Enterprises Regional Rural Bank Life Insurance Corporation State Level Bankers Committee Small And Medium Enterprises Net Bank Credit Rural Development Centers Non-Governing Organizations National Electronic Fund Transfer Real Time Gross Settlement Core Banking Solution Initial Public Offer Mahabank Self Employment Training Institute Straight Through Processing National Bank For Agricultural And Rural Development Entrepreneurship Development Programmers Management Information System Loan Review Mechanism Asset Liability Management Committee Treasury & International Banking Division Credit Risk Rating Framework

Bibliography Books
Banking Aspects Principle of bank -Mc Million

Website
www.google.com www.BankofMaharashtra.co.in

Report refer
HDFC Bank ICICI Bank