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CHAPTER 1
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MEANING OF FINANCE
Finance is the set of activities dealing with the management of funds. More specifically, it is the decision of collection and use of funds. It is a branch of economics that studies the management of money and other assets.
Finance is also the science and art of determining if the funds of an organization are being used properly. Through financial analysis, companies and businesses can take decisions and corrective actions towards the sources of income and the expenses and investments that need to be made in order to stay competitive. Finance is the life blood of business. It flows in mostly from scale of goods and services. It flows out for meeting various types of expenditure. The activating element in any business which may be on industrial or commercial undertaking is the finance.
Business finance has been defined as those activities which have to do with the provision and management of funds for the satisfactory conduct of a business. Business finance is defined as that business activity which is concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of business enterprises.
So we can say business finance is mainly developed around three major objectives. Firstly, to obtain an adequate supply of capital for the needs of the business,
Secondly, to conserve and increase the capital through better management,
Thirdly, to make profit from the use of funds this is an overall objective of a business enterprise.
Before industrial revolution, finance was not of much importance. The methods of production were simple. For example, the artisan used to work in open small hut. He had simple tools mostly made by himself. Labour at that time was more important than capital and finance did not pose any problem. Production in those days was, therefore labour intensive.
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INDIAN FINANCIAL SYSTEM
The financial system or the financial sector of any country consists of specialized and non-specialized financial institutions of organized and unorganized financial markets of financial instruments and services, which facilitate transfer of funds procedures and practises adopted in the markets and financial interrelationship, are also part of the system. The structure of a financial system in any economy is as follows:
UNORGANISED MARKETS
In these markets consist of many lenders, indigenous bankers, transfers and private chit funds etc. whose activities are not controlled by RBI. Recently the RBI has taken steps to bring private function companies and chit funds its strict control but using non banking financial companies directions in 1998.
ORGANISED MARKETS
In these markets there are standardized rules and regulations by Reserve Bank of India or other regulatory bodies. The organized markets can be further classified into two. They are:
1) Capital markets. 2) Money markets.
CAPITAL MARKET: It is a market for long term funds which have a long or indefinite maturity. Capital market further divided into three mainly:
a) Industrial Security market: It is a market for industry security namely equity shares or ordinary shares, preference share, debentures or bonds. It is a market where industrial concern raises their capital or debt by assuring appropriate instruments. It can be further subdivided into two. They are:
Primary market: It is a market for new issue or new financial claims.
Secondary market: It is a market for existing securities and those already issued and quoted in stock exchange.
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b) Government Securities Market: It is also called gilt-edged securities market. It is a market where government securities are traded (long term securities)
FINANCIAL INSTRUMENTS
A financial instrument refers to these documents which represent financial claims on assets. Financial instrument can also be called financial securities. These instruments are classified into a) PRIMARY SECURITIES: Shares and debentures issued directly to Public.
b) SECONDARY SECURITIES: These securities issued by some intermediaries ex; UTI and Mutual fund again these securities may be classified on the basis of duration as follows.
Short Term Securities: Within one year ex; bills of exchange.
Medium Term Security: Maturity period between 1-5 years ex; debentures.
Long Term Securities: Maturity period more than 5 years ex; Gilts.
FINANCIAL SERVICES
a) MERCHANT BANKING: A merchant banker is a financial intermediary who helps to transfer capital from those it to those who need it.
b) LOAN SYNDICATION: Much number of banks joins together and forms a syndicate to provide loan as big sum to corporate.
c) LEASING: A lease is an agreement under which a company acquires a right to make use of capital assets like machinery for agreed period in return for periodic payment of rentals.
d) HIRE PURCHASE: It is an agreement relating to transaction in which goods are let on hire.
e) FACTORING: It is an agreement under which a financial intermediary assumes the credit risk in the collection of book debt passes for its client.
f) VENTURE CAPITAL: A venture capitalist finances a project based on the potentialities of new innovative projects for new entrepreneurs.
g) MUTUAL FUND: A mutual fund refers to a fund raised by a financial services company by pooling the savings of the public.
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INTRODUCTION TO LOANS
One of the primary functions of the commercial bank is ‘lending’. Through lending commercial banks meet their objective of making profits. The deposits collected from the public cannot be kept idle. It has to be utilized in order to derive benefits out of it. The bank collects deposits with the objective of lending and makes profit out of the interest received and paid. Their main aim is to deal in money and provide for those who need it. The banker performs the job of lending within the framework of statues governing the banking business, the government policy and guidelines issued by the authorities of the country (RBI in India).The basic objective of nationalization of commercial banks was to provide funds to the neglected sectors like agriculture, tiny industries and other weaker sections of the society. Today nearly 40% of the total commercial bank advances are the priority sectors. Greater part of the commercial bank funds are employed in the form of loans and advances. Loans bring good money to the bank in the form of profit by charging interest. Lending function of a commercial bank benefits the bank in the form of profit and the one who takes loans enjoy the benefit of money required for their activities. The wheels of industry cannot run without the bank advances. The bank needs to assess the condition of industry or trade or any business enterprise while making advances.
SHORT TERMS LOANS FINANCED BY COMMERCIAL BANKS
Commercial banks are the most important source of short-term capital. The major portion of working capital loans are provided by commercial banks. They provide a wide variety of loans tailored to meet the specific requirements of a concern. The different forms in which the banks normally provide loans and advances are loans and advances are loans, cash credit, overdrafts, purchasing and discounting of bills.
LOANS:
When a bank makes an advance in lump-sum against some security it is called a loan. Here, a specified amount is sanctioned by the bank to the customers. The loan amount so sanctioned is paid to the borrower either in cash or by credit to his account. A certain amount of interest has to be paid by the borrower for the loan that has to be borrowed. A loan can be repaid in lump-sum or in installements. Commercial banks generally provide short term loans up to one year for meeting the working capital requirements. But these days, term loans exceeding one year are also provided by banks. The term loans may be either medium term or long term loans.
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CHAPTER 2
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TITLE OF THE STUDY:
Recovery of loans and advances at “State Bank of Mysore”
Introduction
Any amount borrowed or lent is called a loan. If money is borrowed it is debt of business and if loan is given, it is receivable for the business.
Loan is a method of lending under which bank gives credit to a borrower for a fixed period and for a specific purpose. Loan are promises for future payment, they have to be repaid in periods beyond a year and are, therefore long term liabilities.
The process of granting of loans and advances post credit worthy evaluation of the borrower coupled with the legal documentation is more often than not , reinforced by a strong recovery and monitoring process. The risks associated with adverse selection and moral hazard are to be prevented at any cost.
REVIEW OF LITERATURE:
It is mandatory to scan through the literature which has already gone through the proposed study subject. Various research works on lending practises of SBM has been very helpful in the
successful conduct of the study. However all such studies concentrate on certain issues and suggest piecemeal solution. Therefore, a comprehensive study is elusive. The text and academics literature which helped the study in details are:
A Hand Book of Banking by N. S. Toor
Ramman Finance management.
Finance management and policies by James C. Van Horne.
Management accounting principle and practises by R. K. Sharma.
Accounting for managers S. P Jain and K.L. Narang.
Research methodology by C.R. Kothari.
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STATEMENT OF THE PROBLEM:
SBM is one of the nationalized banks in India which provides loans and advances when it is required by individual or companies and accepts the deposits from public. Being in the business of primarily lending and taking deposits, State Bank of Mysore has a track record of low credit risk manifestation. Yet given the global recessionary trend, the Indian banks have also not been spared. The banking sector has, over the years, witnessed increasing trend of delinquent loan accounts.
This study is focused at evaluating the credit management process at the State Bank of Mysore, Bangalore. The thrust will be on evaluating the quality of the loans and the level of non-performing assets in the loan portfolio.
At the end of the project the study will endeavour to find a conclusion to the question as to whether the State Bank of Mysore. Bangalore has managed its loan recovery system effectively and efficiently
Objectives
To study different types of loans extended by the bank.
To study the procedure of granting loans and advances by the bank.
To evaluate the norms for sanctioning loans.
To confirm the non existence of the conditions of adverse selection and moral hazard.
The ascertain the reasons, if any, for the non performance assets and if significant to evaluate the recovery process
To ascertain the credit risk management system at the bank
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RESEARCH METHODOLOGY:
This refers to the method of data description. Descriptive research includes surveys and fact findings enquire of different kinds. The major purpose of descriptive research is description of the state of affair as it exists at present. In business research we quite often use the term export facto research for descriptive research studies.
The main characteristics of this method is that the researcher has no control over the variable, he can only report what has happened or what is happening. The method of research utilised in descriptive research are survey methods of all kinds including comparative and correlation methods.
Sources of data Collection
The data is most vital and the integral aspect, which is responsible for the completion of any project.
Primary data
The primary data will be collected through personal interaction with the executives and managers of the Bank as also from an verification of the records to the extent permitted. Primary data will also be collected, collated and interpreted through observation of the processes at the bank
Secondary data
It will be retrieved and collated from the annual reports of the Bank, from reports in various magazines, academic journals and other published papers of repute.
Plan of Analysis
The data collected will be analyzed using the various techniques and tools generally accepted as proper for such analysis. Techniques like Risk Identification and financial analysis will be used in arriving at the logical conclusion.
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Limitation
This study is limited by resource and time constraints
For the reasons mentioned above the study is restricted to only one Bank and in that direction it may not be reflective of the pattern at the other banks
Due to confidential nature of the record may not be in a position to collect data in totality but through a representative sampling technique will endeavour to overcome this limitations
Chapter Scheme
1) INTRODUCTION 2) RESEARCH DESIGN 3) INDUSTRY PROFILE
4) PROFILE OF THE COMPANY/ORGANISATION/SYSTEM. 5) ANALYSIS AND INTREPRETATION OF DATA.
6) SUMMARY OF FINDINGS ,CONCLUSION & RECOMMENDATION. BIBLOGRAIPHY.
APPENDIX.
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CHAPTER 3
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History
State Bank of Mysore was established in 1913 as Bank of Mysore under the patronage of the
erstwhile government of Mysore, at the instance of the banking committee headed by the great Engineer-Statesman, Late Dr Sir M Visvesvaraya. Subsequently, in March 1960, the bank became an Associate of State Bank of India. State Bank of India holds 92.33% of shares. The bank's shares are listed in Bangalore, Chennai, and Mumbai stock exchanges.
SBM has a widespread network of 671 branches (as on 31.01.2009) and 20 extension counters spread all over India which includes 6 specialized SSI branches, 4 Industrial Finance branches, 3 Corporate Accounts Branches, 4 specialized Personal Banking Branches, 10 Agricultural Development Branches, 3 Treasury branches, 1 Asset Recovery Branch and 7 Service Branches, offering wide range of services to the customers.
The bank has a dedicated workforce of 9720 employees consisting of 3169 supervisory staff, 6551 non-supervisory staff (as on 31.03.2008). The skill and competence of the employees have been kept updated to meet the requirement of our customers keeping in view the changes in the environment. The paid up capital of the Bank is Rs.360 Millions as on 31.03.2008 out of which State Bank of India holds 92.33%.The Bank has achixeved a capital adequacy ratio of 11.73% as at the end of March 2008. The bank has an enviable track record of earning profits continuously and uninterrupted payment of dividend since its inception in 1913.
Total deposits of the bank as at the end of January 2009 is Rs 31817 Crores and the total advances stood at Rs. 24713 Crores which include export credit of Rs. 10159.50 million. The forex turnover of the bank crossed Rs 336963.50 million during the year March 2007 to March 2008 which is 44.66% higher.
State Bank of Mysore is the first Karnataka-based Bank with fully networked branches. The bank is fully on 'CORE BANKING SOLUTION' from 31.12.2005. In record time of one calendar year, the bank completed the exercise of converting all the branches to Core Banking to provide the convenience of anytime,
anywhere banking to all our valued customers.
State Bank of Mysore embarked upon the latest Banking Technology platform by implementing the Core Banking Solutions (CBS) across all its branches, with an objective of providing banking convenience to the customers.
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Services Offered By The Company: Deposits
My bank Surakhshna- A unique deposit scheme linked with insurance cover has been introduced. Insurance cover to a maximum of Rs. 5 lakh on deposits held for 5 years and more.
Saving Plus- In order to provide value added services to our Personal Segment customers, a new specialized auto sweep product for Personal Segment savings bank customers has been introduced.
Saral Savings Bank account (No Frills account)- This account comes with very low minimum balances as well as low / nil charges, to cater to the needs of individual from the vast sections of population who are, otherwise, not fulfilling certain conditions of our existing Savings Bank requirements.
SBM Tax Saver Scheme (Tax saving scheme under Sec 80c of the IT act)A Bank Term Deposit Scheme 2006 has been introduced by the Central Government commencing from the financial year 2006-07 wherein time deposits made upto Rs.1.00 lakh for a period of 5 years are exempted from payment of Income tax under Sec 80C
The following are the Deposit Scheme provided by State Bank of Mysore:
Multi Option Deposit Scheme
It combines the features of Current account, Savings Bank a/c, TDR or RID a/c. The product proposes to give liquidity to the depositor with high returns and convenience. It provides the
depositor an automatic overdraft facility in Current a/c and automatic withdrawal of Term deposits in units through SB a/c. Depositor has to simultaneously open TDR / RID a/c for Rs.1000/-, SB a/c with balance Rs.500/- and Current a/c.
Long Term Floating Deposit account
A fixed deposit scheme for 5 & 8 years to get an additional interest of 0.25% and 0.5% respectively more on base interest rate (of 3 years deposit). The depositor has the option to invest in long term maturity at a floating rate with an opportunity to gain in any upward movement in interest rate. Minimum deposit of Rs.50000/-.
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Savings Bank account
Customer can open an account with a deposit as low as Rs.100/- to Rs.300/-(Rs. 250/- for
chequebook facility and Rs.100/- without chequebook facility) depending upon the area and earn interest at 3.5% (wef 01/03/2003) per annum. Computerized branches - Rs.500/- and for Specialized hi-tech branches - Rs.2000/-
Term Deposits
In this scheme, customers can invest a lumpsum amount for a specific period from 15 days upto 120 months and collect interest at monthly (discounted), quarterly, half- yearly or yearly intervals.
Reinvestment Deposits
According to this scheme, customers investment and interest for the specified period is paid together at the end of the term. It gives the highest yield of interest on savings taking care of customers future needs like marriage, house construction, children's higher education, etc., Period can be from 6 months upto 10 years
Recurring Deposits
In this scheme, the minimum monthly installment is Rs.20/- and is accepted in multiples of Rs.5/- thereafter. Deposits are accepted from 6 months to 120 months
Cash Certificate
In this scheme, customers pay an odd sum of money and receive a huge round sum. The period of this scheme is from 6 months to 10 years, with quarterly compounding of interest.
Grameena Thevani Yojana
A special deposit scheme, with interest compounding quarterly for persons with seasonal income like agriculture. Deposit in five yearly installments gets a huge sum after 10 years.
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Perennial Income Plan
A novel pension plan for a tension free future specially for self-employed / daily wage earners who are not covered under pension scheme. Customers save specified amount at regular monthly intervals for a specified period of say, 7 / 10 years when young and energetic. They get a regular monthly income after 7th / 11th year equal to or twice the monthly saving throughout life or get a huge sum for their large needs.
Super Savings Package
This is a plan which takes care of old age. Customers save a specified small sum every month for 15 or 25 years (renewed every 10 years) and it is re-cycled every 10 years to get the maximum benefit of compound interest.
Advances
Personal Banking schemes
Commercial & Institutional Banking schemes
Agricultural Banking schemes
Micro and Small Enterprises schemes (MSE) NRI Services
NRI Deposits
International Banking - Forex services
Performa for foreign currency remittances
Account opening form for non-resident Indians
Interest rates on NRE Deposits and schemes
Details of its correspondent Banks -Exchange companies with Draft drawing arrangement with the Bank -Money Transfer to India Through Western Union -Remittance facility through State Bank of India, New York Branch
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LOAN SCHEMES
Personal Loans Eligibility
Individuals, employees of state / central government, Public Sector undertakings, reputed profit making Public limited companies, Multi national companies with a minimum service of two years and drawing a net salary of Rs. 6,000/- or above.
Purpose
To meet personal expenses like marriage, family functions, medical expenses, travel etc., Loan Amount
Upto Rs. 1.50 lacs depending on repayment capacity of the individuals. Security
Third party guarantee of equal means. Securities like LIC policies, NSC, KVIP, Shares etc., Period of Repayment
12 months to 36 months. Type of Loan
Demand loan. Processing Fee
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Mortgage Loan
Eligibility
Individuals, employees, professionals, self-employed and others who are income tax assessee whose net monthly income is of Rs. 12,000/- for salaried persons or net annual income of Rs. 1,50,000/- in case of others and self-employed.
AGE
Maximum age - 65 years. Loan Amount
Rs. 1.00 lac to Rs. 50.00 lacs
Salaried Class - Maximum 36 times net monthly income. Others - Maximum three times the net annual income. Type of Loan
Term loan or current account overdraft Security
Equitable mortgage of unencumbered residential house / flat or urban commercial or industrial property in the name and possession of the borrower, either self acquired or vacant property. Rented out property will be accepted as security only where lease is in existence in favour of corporation of good standing and repute. Power of attorney authorising the Bank to collect rent should be given.
Margin
50% of the market value of the security.
Period of Repayment
Repayable in 84 equated monthly instalments.
Processing Fee
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INSURANCE
The property being mortgaged should be insured against the risk of fire / riot / earthquake / lightning / floods etc.,
Housing Loan
Under Personal Segment, You can avail a loan for
Construction or Purchase of a new house or flat Repairs / Renovation / Extension of existing house
For purchase of plot for construction of house within two years
For purchase of built houses not more than 15 years old
Housing loan against II charge
For Purchase of Furnishings / Consumer durables as part of the project
Quantum of Loan amount Loan amount for all categories
Net Annual Income EMI /
NMI Ratio
Upto Rs. 60000/- 20%
Above Rs. 60000 to less than Rs.1,20,000/- 25% Above Rs. 1,20,000/- to less than Rs.2,00,000/- 30% Above Rs. 2,00,000 to less than Rs.5,00,000/- 50% Above Rs. 5,00,000 to less than Rs.10,00,000/- 55%
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Maximum Repayment period
Age Repayment
period For persons below 35 years of age 25 years For persons below 45 years of age 20 years For persons above 45 years of age 15 years
Margin
Amount Margin (%)
Upto Rs. 30 lakhs 20%
Above Rs. 30 laks to 75 lakhs 20% Above Rs 75 lakhs to 1.00
Crore
25%
Above Rs 1.00 crore 40%
Margin for Purchase of New houses which are ready for possession (Applicable to First sale only)
Amount Margin (%)
Upto Rs. 75 lakhs 15%
Above Rs.75 laks to 1 cr 20%
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Interest
Penal interest of 1% in case of default of three or more consecutive instalments.
Loan amount Processing Charges (w.e.f. 01.06.2011) Upto Rs 25 Lacs 0.25% of loan amount, with a minimum of Rs
500/- Above Rs 25 Lacs and upto Rs 75
Lacs
Rs 10,000/-
Above Rs 75.00 Lacs Rs 20,000/-
Insurance
The house property has to be insured covering all risks. Group insurance is available to cover the life of the borrower on payment of one time upfront premium.
Disbursement
Direct to the sellers in case of purchase.
For Construction / Repairs / Renovations – in a phased manner Repayment
Repayable in monthly instalments. Repayment period ranging from 5 to 25 years, including a moratorium period ranging from 6 to18 months from the date of the first disbursement.
Schemes and Interest Rates are subject to changes from time to time. Attractive features of State Bank of Mysore’s Housing Finance scheme
Loans from State Bank of Mysore are cheaper than housing finance agencies / companies.
Nominal processing charges.
No administration charges.
No commitment charges.
Interest charged on reducing balances.
Facility available at all branches in India.
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Pre-payment Penalty
No Pre-closure / Pre-payment penalty on all Home Loans.
Happy Home- Consumer Durable Loan Scheme
Happy Home Loan Purpose
State Bank of Mysore is now at your doorsteps to provide you all good things in life you have been craving for. You richly deserved them but couldn’t buy them perhaps for want of ready cash. Here is where State Bank of Mysore steps in to solve your problems and make your home a ‘Happy Home’. Colour TV Sets, VCRs, Refrigerators, Cars, Scooters, Mopeds, Washing Machines, Mixers / Grinders, Coolers, Air conditioners, Furniture and what have you? All these goodies brought to you within your reach under State Bank of Mysore’s Happy Homes Scheme.
Highlights of the Scheme
Tailor-made for employees of Govt / Public Sector undertakings, Corporations, Private Sector Companies, Police, Defence forces and reputed establishments with a minimum of 5 years service. Professionals, Self-employed with a minimum of 5 years standing.
Net monthly salary / income should be Rs.2000/-
75% of the cost of the articles.Maximum loan of Rs. 1.00 lac or eight times the net monthly income / salary of the borrower whichever is lower.
Repayable in 36 to 60 months.
Minimum loan amount Rs. 10000/-. Demand Loans upto Rs.25000/- payable in 36 months. Demand Loans above Rs. 25000/- repayable in 36 months Term loans repayable in more than 36 months and upto 60 months.
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Simple security needed.
Hypothecation of assets created (articles bought)
Third party guarantee acceptable to the bank if check off facility is not available.
Insurance Cover
Vehicles bought to be insured for full value.
For articles above Rs.10000/- insurance will be for market value or atleast 110% of the loan amount whichever is higher.
A small one-time service fee of 1% of the loan amount.
Specially for the Salaried class for purchase of two-wheelers
Minimum net salary of Rs.2000/- per month with availability of check off system. Loan sanctioned upto 90% of the cost of vehicle or 12 times the net monthly income whichever is less. Gross deduction including loan instalment should not exceed 33% of the gross salary.Maximum - Rs. 4.00 lacs or 80% of the cost of vehicle +1%. Second hand cars - 60% of market value; not older than 5 years; Maximum loan - Rs. 2 lacs.
Repayable in 36 months, may be extended upto 60 months
Security offered should be:
Hypothecation of vehicle
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Vehicle should be insured for full value. One-time service fee of 1% of loan amount.
Gnanamitra Educational Loan
Purpose
To enable students with academic brilliance to meet tuition and other fees / maintenance costs / books and equipment and cost of passage for studies abroad etc., for pursuing studies at recognised school / college / institution.
Courses Eligible- Higher Studies
Diploma / Graduate / Post-graduate courses in the faculties of Engineering, Technology, Architecture, Medicine, Dental Science, Agricultural Science, Veterinary Science and Computer Certificate courses of reputed institutes accredited to department of electronics or affiliated to university
Limit
Amount of loan
(in Indian Rupees) MIN(Rs.) MAX(Rs.) Higher Education- In India 10000 10.00 lacs Higher Education- Abroad 10000 20.00 lacs
Margin
Upto Rs. 4.00 lacs Nil Above Rs. 4.00 lacs - For studies in India 5% For studies abroad 15%
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INTEREST RATES: SCHEMES AND INTEREST RATES ARE SUBJECT TO CHANGES FROM TIME TO TIME.
Second Educational Loan
To enable the students for taking higher education, provided the student secures 60% marks in existing course. The second loan is to be availed only from the branch where the first educational loan has been sanctioned.
Repayment
Technical / Professional Higher studies in India / Abroad
Repayment of loan to commence immediately after disbursal, by the parent / guardian, out of his / her income. Instalments may be nominal (to cover interest portion, at least) during the period the student is undertaking the studies. The instalments will be stepped up one year after the completion of the course or after the student gets a job, whichever is earlier, so that the loan gets repaid together with interest within a period of 60 to 84 months thereafter.
Security
Amount. Security
Upto Rs. 4.00 lacs NIL
Above Rs. 4.00 lacs and upto Rs. 7.50 lacs
Collateral in the form of a suitable 3rd party guarantee
Above Rs. 7.50 lacs and upto Rs. 10.00 lacs
Collateral security by way of immovable property or equal to the loan amount in the form of Government securities / NSCs / Units of UTI
Guarantee of parents / guardians (in the case of minors, the parent / guardian will execute the documents on behalf of the minor and also in his capacity as co-borrower) / third party guarantee where sufficient collateral security is not available
Insurance
An insurance policy will be taken on the life of the student borrower for an amount equivalent to the loan amount and the policy should be convertible whole-life one for 25 / 30 years, convertible after 5 years into
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one with endowment benefits. The Bank will pay the insurance premia on the policy by debiting it to the loan account. On liquidation of the loan, the policy will be reassigned and delivered to the borrower.
Repayment
Completion of course + 1 year or 6 months after getting a job, whichever is earlier.The interest to be debited monthly on simple basis during the repayment holiday / moratorium period. Penal interest @2% will be charged for amount above Rs. 2 lacs for the overdue amount and overdue period. Interest concession of 1% per annum is available, provided the interest is repaid during moratorium period as and when the interest is applied.
MyBank Scholar Loan
MYBANK SCHOLAR- A SCHEME FOR STUDENTS OF PREMIER AND REPUTED INSTITUTIONS
Purpose
Loans will be granted to deserving/meritorious students for pursuing full time courses in India at selected premier and reputed institutions identified by the Bank.
Eligibility
The applicant should be an Indian National and should have secured admission to full time professional/ technical courses in selected elite institutes
Eligible Expenses
Fee payable to college/school/ hostel
Examination/ Library/Laboratory fees
Purchase of books/equipments/ instruments/ uniforms
Caution deposit/ building fund/ refundable deposit supported by institution bills/receipts [not to exceed 10% of tuition fees for the entire course]
Purchase of computers, if essential for completion of course
Any other expense required to complete the course like study tours, visits to foreign universities in exchange programs, project work, thesis, etc
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Institutes & loan amount:
Presently 100, which include IIMs and IITs etc. Maximum loan amount Rs.15.00 lacs depending upon the course/institute.
Courses covered
Regular full time Degree/Diploma Courses and not certificate/part-time courses, through entrance test/ selection process. In case of IIMs full time Executive Management Courses like PGPX are covered A) 2.50% above BASE RATE (Refer Interest rates)
B) Simple Interest to be charged during moratorium/ repayment holiday. Interest concession of 1% for the entire period of loan if the interest is serviced during course period and moratorium. This concession will be released in two stages.
Margin:
Upto Rs. 4 lacs: Nil. Above Rs.4 lacs: 5%
Scholarship/ assistantship to be included in the margin
Margin may be brought in on year to year basis as and when disbursements are made on a pro-rata basis
Security:
Co-obligation of parent/guardian. In case of married person, co-obligation can either be of spouse or parent/parent-in-law.
Processing Fee Nil
Moratorium Period
Up to 6 months after completing the course. Repayment
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Car Loan Scheme
For New Cars:
Salient features of the scheme: Purpose:
For the purchase of new passengers Cars, Jeeps, Multi Utility Vehicles (MUV) and SUVs. Eligibility:
Individuals between the age group of 21 years to 65 years.
Annual Income:
Salaried class with an annual income of Rs. 2,50,000/- & above. Self employed & Professionals with an annual income of Rs.2,50,000/- & above.
Loan amount:
For salaried persons: 48 times of the Net Monthly Income For others: 4 times of the Net Annual Income
The income of the spouse can be included for arriving at the loan amount, provided spouse joins as co-borrower.
Margin: 15% Security:
1) Hypothecation Charge over the car. 2) Noting of Bank’s lien with the R.T.O. 3) Third party guarantee (if there is a need)
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Insurance:
Comprehensive insurance cover for the full value of the vehicle. Service Charges:
0.50 % of the loan amount with a minimum of Rs.500/- and maximum of Rs.10,000/- Prepayment charges: No Pre Closure / Pre Payment penalty on all car loans.
FREE ACCIDENT INSURANCE COVER (DEATH RISK ONLY) Papers to be submitted:
1. Statement of Bank account of the borrower for last 12 months. 2. 2 passport size photographs of borrower/guarantor.
3. Signature identification from bankers of borrower/guarantor. 4. A copy of Passport /Voters ID card/PAN card.
5. Proof of residence by way of tax receipts, telephone bill, electricity bill or any other document that comply with the regulatory and/or KYC requirements.
6. Latest salary-slip showing all deductions and TDS Certificate-Form 16 in case of salaried persons. 7. Copy of Income tax Return for the last 2 financial years duly acknowledged by the ITO for
professionals, Self employed and others.
8. Proof of official address for non-salaried individuals. 9. Proforma invoice of the vehicle.
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For Used Cars:
Salient features of the scheme: Purpose:
For the purchase of passengers Cars, Jeeps, Multi Utility Vehicles which are not more than 5 years old. Valuation:
Certificate of fitness / valuation from a reputed garage is required. Repayment:
The loan has to be repaid within 7 years from the date of original purchase of the vehicle. Loan for purchase of residential site / plot
Eligibility
Individuals not above the age of 60 years with a steady source of income
Purpose
To purchase site / plot by BDA / Housing Board / District Urban Development Authority / City Improvement Trust Board / Municipal Corporation / State Development Authority, on first sale only
Loan Amount
24 times net monthly income / 2 years annual income (subject to production of satisfactory proof) or 80% of the cost of the site whichever is less
Income of Spouse
For arriving the quantum of loan, income of the spouse may be considered where the allotment will be in single name and spouse stands as guarantor
Other Income
Regular income of the borrower from all sources can be considered subject to the satisfactory proof of the income
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Margin
20% of the cost of site / plot Type of Account
Medium Term Loan Account Repayment
Maximum of 60 months in equated monthly instalments Processing Fee
Rs. 500/- flat per account
Security
Equitable Mortgage of the site / plot to be purchased
Other Conditions
a) The letter of allotment / agreement for sale from the Housing Board / BDA / District Urban Development Authority / City Improvement Trust Board etc., should be obtained
b) A letter signed by the allottee duly expressing his / her intention to create the Mortgage (equitable / registered) in favour of the Bank to be obtained and forwarded to the allotting agency
c) The said letter should also contain a direction to the allotting agency to hand over the Documents directly to the Bank / Bank's Representative after registration of the property
d) A letter of undertaking to be obtained from the site allottee to the effect that a house will be constructed in due course and the relative site will not be sold on commercial consideration
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MYBANK ARAKSHAK
Personal loan scheme for Police Personnel
This scheme is introduced to assist the Police Personnel to avail the loan hastle free Eligibility
All Police Personnels (Permanently employed) Purpose
Personal loan for any purpose including purchase of consumer durables
Loan Amount
10 times net monthly income with a maximum of Rs.1.50 lac
Income of Spouse
Spouse income may be considered to arrive at the eligible loan amount provided spouse is also employed (permanent employment) and stands as guarantor
Type of Account Demand Loan Account Margin
Nil
Repayment
Maximum of 36 months in equated monthly instalments Processing Fee
Rs.250/- flat. Security
Upto Rs.25,000/- Nil
Above Rs.25,000/- check off facility. NSC,LIC policy may be insisted for security wherever possible or third party guarantee of equal means
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Other Conditions/Requirements
Loan Recovery through check off facility
MYBANK ADHYAPAK
Personal loan scheme for teacher community Eligibility
Permanent Teachers / Non-Teaching Staff of Central / State Govt. Educational Institutions and also Teachers and Non-Teaching Staff of Govt. Recognised Schools / Colleges / Aided Institutions
Purpose
Personal Loan for any purpose including purchase of consumer durables
Loan Amount
10 times net monthly income with a maximum of Rs.1.00 lac
Income of Spouse
Spouse income may be added to arrive at the eligible loan amount provided spouse is also employed and stands as guarantor.
Type of Account Demand Loan Account Margin
Nil
Repayment
Maximum of 36 months in equated monthly instalments Processing Fee
Rs.250/- flat Security
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Above Rs.25,000/- check off facility. NSC,LIC policy may be insisted for security wherever possible or third party guarantee of equal means
MYBANK UTSAV
Personal loan scheme for individuals for meeting expenditure related to Festivals Eligibility
a)Employees of State / Central Govt.,/ PSUs / profit making Public / Private Ltd., Companies, Institutions etc., with a minimum of 2 years service.
b)Self employed persons with a minimum 3 years standing / experience.
c)Persons having regular source of income from verifiable channels like Pensions and Interest on TDRs / NSCs / Govt. Securities etc.,
Purpose
Loan to individuals for meeting expenditure related to Festivals Minimum Net Income
Net Monthly Income (NMI) of Rs.3000/- & above
Loan Amount
Four times the net monthly income with a minimum of Rs.5000/- and a maximum of Rs.50,000/- (Borrowers other than salaried people should produce acceptable proofs with respect to their annual income)
Security Primary - Nil
Collateral - personal guarantee of the spouse if employed, or any other person of adequate worth where check off facility is not available
Repayment Period
Maximum of 12 months through EMIs. No penalty for prepayment Processing Fee
Page 34
Type of Loan Clean Demand Loan Disbursement
To the borrowers by credit to their account MYBANK ADHYAPAK
Personal loan scheme for teacher community Eligibility
Permanent Teachers / Non-Teaching Staff of Central / State Govt. Educational Institutions and also Teachers and Non-Teaching Staff of Govt. Recognised Schools / Colleges / Aided Institutions
Purpose
Personal Loan for any purpose including purchase of consumer durables
Loan Amount
10 times net monthly income with a maximum of Rs.1.00 lac
Income of Spouse
Spouse income may be added to arrive at the eligible loan amount provided spouse is also employed and stands as guarantor.
Type of Account Demand Loan Account Margin
Nil
Repayment
Maximum of 36 months in equated monthly instalments Processing Fee
Page 35
Security
Upto Rs.25,000/- Nil (only Check off facility).
Above Rs.25,000/- check off facility. NSC,LIC policy may be insisted for security wherever possible or third party guarantee of equal means
Sanjeevini
This scheme is introduced to provide timely assistance for obtaining Medical treatment for Salaried class, Self employed persons, Employees of reputed PSUs, Profit making public limited companies, Self employed engineers, Doctors, Architects, Chartered Accountants, MBAs, Pesioners of PSUs, Govt. (state/central) public sector banks and also pensioners of State Bank of Mysore.
Salient features of the scheme: Eligibility:
a) Employees of Government, Reputed PSUs and profit making Public Limited Compani, with a minimum of 10 years service
b) Self Employed Engineers, Doctors, Architects, Chartered Accountants, MBAs, with a minimum 5 years standing. They should be below 65 years of age
c) Pensioners of PSUs / Govt. (State/Central) Public Sector Banks who have taken premature voluntary retirement and are 60 years of age or less, including pensioners of SBM
d) Agents of Insurance / KVP / Mutual Funds etc., who are tax assesees and whose gross annual income exceeds Rs. 1.50 lacs. The facility will be considered only if a power of attorney or mandate is registered with the principal organisation with which the agent deals, authorising them to remit the commission direct to the Bank.
Provided, however, that if the person treated happens to be a minor Son / Daughter of an eligible applicant, the loan can be extended to the Parent earning
Income Criteria:
a) For Employees / Pensioner - Net monthly income Rs. 6000/-
b) For Self Employed Person - Net annual income of Rs. 1,50,000/- as per latest I.T. Returns c) For Agents - Gross income exceeding Rs. 1.50 lakh per annum (to produce latest I.T. Returns) d) Income of the spouse can be considered if the spouse guarantees the loan
Page 36
Minimum Rs. 20,000/-
Maximum 12 months net monthly income, Net of all deductions, including Income Tax for salaried individuals and pensioners and 1 year's net annual income in case of Self-employed professionals subject to the ceilings as below: Employees and Professionals: Rs. 1.50 lacs Pensioners who have taken early retirement and Agents under eligibility above Rs. 1.00 lac Margin:
15 % of the total cost of Hospital bill Rate of Interest: (wef 10.08.2008)
With check-off facility 15.25% Without check-off facility 15.50% Type of Loan: Medium Term Loan
Security: Tangible Collateral Security. Procesing fee:
0.50% with a maximum of Rs. 500/-. Disbursal:
1. Directly to hospital against production of bills or 2. Payment against indents from hospital
3. Reimbursement may also be considered within 15 days from the date of discharge when payment has already been made
Repayment:
Minimum -36 months
Maximum 72 months - out of Salary / Pension /Professional Income / Agricultural Income Age limit:
Maximum 65 years Other Conditions:
Page 37
In case of Pensioners any one earning member of the family should be a co-borrower If salaried person is accepted as co-borrower / Guarantor, check-off facility to be obtained For professionals, minimum 2 years of Income tax assesment should be obtained
Samachar
This product has been introduced to meet the needs of journalist community who are directly involved in providing updated happenings over the globe.
For purchase of Cameras, Computer, Books, Two wheelers, Mobile phones etc., for permanent employees of leading Newspapers.
Salient features of the scheme: Eligibility:
a) Permanent employees of Leading Newspapers b) Minimum net salary Rs. 5000/- per month Loan Amount:
a) 12 times of Net monthly income.
b) Minimum Rs. 10000/-. Maximum Rs. 1,00,000/- Margin:
10%
Type of Loan: Term loan repayable in 36 - 60 months Security:
Hypothecation of the articles / Vehicles purchased Guarantee:
i) No guarantee needed if check-off facility is available
Page 38
Insurance:
10% above the market value of articles Processing Charges:
0.50% with a maximum of Rs. 500/- Disbursal:
Direct to the dealer
Necessary papers to be given by the applicants: 1. Application form
2. Credit Declaration form 3. Salary Certificate
4. Income Tax returns copy
5. Statement of Bank account for the last 6 months 6. Undertaking from the employer to deduct instalments
7. 3 photographs of applicant / guarantor 8. Undertaking that articles are allowed to be inspected any time by the Bank officials
Page 39
STRATEGIES FOR RECOVERY
1. Preparation Of Demand List:-
The society shall prepare a village wise demand list of all the borrowers. The list shall contain the information of over dues at the beginning of the year i.e. 1st April; loans falling due for repayment are subsequent months up to March. The total demand for the year should be arrived at on basis of demand falling due in different months. The demand register shall be prepared by 30th November by the Secretary of the society which shall be test checked by the Supervisor in at least 10% cases.The list of defaulters shall be displayed in the notice board of the society, gram panchayat and at
conspicuous places in the village for information of the borrowers. A copy of the list shall be supplied to the Area Directors and President of the society to pursue with the defaulting members for repayment
2. Service Of Demand Notice:-
The demand notice to members shall be prepared by the Secretary and service of the
notices on the members completed by 31st December. In case of KKGC and KKSC holders, the demand notice shall be served by the Bank Supervisor. As regards other members, the Secretary of the society shall personally have the notices and obtain the dated acknowledgement of the borrowers on the reverse of the duplicate copy. In case the borrower is absent from the village, the notice shall be served on his purpose or any adult member of the family. In no case the demand notice shall be
allowed to be served on the borrowers through the Peon/Watchman of the society
3.Fixation Of Target:-
Fortnightly target for recovery should be fixed for each society/branch month wise starting from December onwards and communicated to all concerned. Normally the target for recovery should be 15% of the demand by December, 20% in January 25% in February and 30% in March. The
achievement against the target shall be monitored and reviewed every month in branch level meetings of PACS and branch Managers meeting at the Head Office of the CCBs. The shortfall in achievement during the month shall be added to the next month’s target. Fortnightly report of recovery of loans shall be submitted by the CCBs to OSCB in the prescribed format from January to March on the 3rd day of the succeeding fortnight to which it relates.
Page 40
4. Recovery Squard :-
A recovery squard for each branch shall be formed with 2 to 3 staff comprising an officer from Head office, Field Officer of the branch who will attend recovery of loan and contact big defaulters of Rs. 5,000.00/- and above. In case of shortage of staff, a recovery squard may be formed to cover the loanees of 2 to 3 branches. The squard shall draw up programme in advance to visit specific areas/society on a definite date. The achievement in recovery of loans shall be reported to the Secretary of CCB on the subsequent day of visit. The squard shall be giving more attention for recovery of NPA loan accounts. The loan accounts likely to become NPA by end of the year shall be extracted by Dec. 3 and also pursued for recovery. The recovery squard shall also assist in execution of E.P. cases in the area.
5. Display Of Default List:-
The names of top 20 defaulters shall be displayed prominently by painting in black color on the wall in the branch/PACS premises. This should be updated twice a year i.e. in April and October.
6. Recovery Camp:-
Recovery camps shall be organized at strategic places for a cluster of societies. The detail schedule of holding such camps should be drawn up much in advance and communicated to all concerned. The senior officers of Head Office shall attend those camps unfailingly for which mobilization of the loanees should be done by the field staff of the Society/branch at least 2 weeks prior to the date of the camp. The District Collector and other senior officers like P.D., DRDA, DDA, DAO, DRCS, and BDO may be invited to attend such camps. The non-official Directors and President of societies may also be
associated in recovery of loans. Other line department officers should also be invited to attend the recovery camps. The CEO of CCBs shall attend at least 15 recovery camps in a month during the recovery drive (January-March and May-June).
7. Supervise Of Field Movement:-
The CEOs/Senior Officers of CCB should contact surprise check on the movement of the field staff and take exemplary against the erring employees. The secretary of PACS shall display his tour programme on the notice board/wall of the society when leaving HQs.
8. Legal Action:-
All defaulted loan accounts of Rs. 2,000/- and above crop seasons shall be covered by disputes. In case of direct lending by KCCB, all NPA accounts shall also be covered under dispute. The dispute
Page 41
cases shall be prepared and filed by 31st August. The KCCB would arrange for holding camps at the branch level for preparation and filing of dispute cases in consultation with DRCS and Circle ARCS. In such camps the societies will attend the branch with relevant records and after scrutiny by
Branch/Department Officer, the dispute cases will be filled before the appropriate authority in the camp itself. The decree copies already received shall also be covered by E.P. cases in in those camps. All dispute and E.P. cases should be routed through the branch managers to ensure that all required formalities are complied with before the case is filed. RCS (O) in his letter No. 4641 dated 27-03-2003 has issued instruction to the Circle ARCS to send a copy of the decree to concerned branch manager so as to enable them to ensure filing of E.P. cases with in 15 days from the date of award of decree. The Branch Manager should also keep close contact with the Principle Officer/Arbitrator/Sale Officer for expeditious disposal of cases filed. The progress of disposal of dispute and E.P. cases shall be reviewed in close coordination with the Divisional DRCS and Circles ARCS in the monthly meetings. Dispute cases filed by the societies pending for more than three months and E.P. cases more than one year should be identified and brought to the notice of concerned ARCS and DRCs with copy to RCS, Orissa and Managing Director, OSCB. Similarly in direct advance cases disputes pending for more than six months and E.P.S pending for more than one year should be identified and reported to proper quarter.
Page 42
CHAPTER 4
Page 43
FINANCIAL ANALYSIS
Particulars Mar 12 Mar 11 Mar 10
Investment Valuation Ratios
Dividend Per Share 10 10 10 Operating Profit
Per Share (Rs) 110.47 156.22 250.01 Net Operating
Profit Per Share
(Rs) 1176.49 961.09 1108.66
Profitability Ratios
Interest Spread 4.36 4.77 4.29 Net Profit Margin 6.64 11.06 11.08 Adjusted cash margin (%) 7.54 12.17 12.13 Return on longterm fund 115.78 102.75 145.93 Management Efficiency Ratios Interest income / Total Funds 9.9 9.34 9.42 Net Interest income
/ Total Funds 3.62 4.27 3.94 Non Interest income / Total Funds 0.08 0.06 0.07 Interest Expended / Total Funds 6.28 5.08 5.48 Leverage Ratios Current Ratio 0.03 0.03 0.02 Quick Ratio 24.73 21.01 20.74 Profit and loss
account ratio Advances/loans funds(%) 78.77 77.62 76.88 Capital adequacy ratio 12.55 13.76 12.42 Interest earned 68.8 59.89 62.25 Debt coverage
ratio Credit deposit ratio 79.07 77.42 76.82 Investment deposit
ratio 29.61 29.74 31.86 Cash deposit ratio 6.14 6.66 6.27
Page 44
Page 45
Table:1
Table showing total advances from the year 2009– 2012
Year
Amount ( in Crores)
Percentage (%)
2009- 2010 22,156.11 25.95 2010 – 2011 27,868.11 32.62 2011 – 2012 35,393.55 41.43
Total 85,417.77 100
ANALYSIS:
From the above table it can be analysed that in the year 2009 – 2010 the total no. of advances was 22,156.11 crore with a 25.95%; in 2007 – 2008 the total no. of advances was 27,868.11 crore 32.62% and in the year 2010– 2011the amount is 35,393.55 with 41.43%.
Page 46
Graph: 1
Graph showing total advances from the year 2009 – 2012
INTERPRETATION:
From the above pie- chart it can be inferred that in the year 2010 – 2011 showed the maximum advances.
Page 47
Table 2
Table showing outstanding amount of loan for the years 2009 – 2012.
(a) Housing finance
ANALYSIS:
From the above table it is analysed that when we compare the year 2009 – 2010 the amount outstanding was 1,418.57 crore with 31.80%. In the year 2010 – 2011 the amount was 1,453.67 crore with 32.50 % and in the year 2011 – 2012 it was 1,591.42 crore with 35.70%.
Year
Amount (in crore)
Percentage (%)
2009 – 2010 1,418.57 31.80
2010 - 2011 1,453.67 32.50
2011- 2012 1,591.42 35.70
Page 48
Graph 2
Graph showing outstanding amount of the loan for the years 2009- 2012.
(a) Housing finance
INTERPRETATION:
From the above pie- chart it can be inferred that there is continuous growth every year in the housing finance segment. There is a noticeable growth in the home loan segment which is very profitable to the bank for their further financial improvement.
32% 32% 36%
Housing finance
2009- 2010 2010 - 2011 2011 - 2012Page 49
Table 3
Table showing outstanding amount of loan for the years 2009 - 2012
(b) Car loans
ANALYSIS:
From the above table it is analyzed that when we compare the year 2009– 2010 the amount outstanding was 70.18 crore with 23.62% . In the year 2010 – 2011 the amount was 80.02 crore which shows 26.96% and in the year 2011 – 2012 the amount was 146.81 crore with 49.42%.
Year
Amount (in crore)
Percentage (%)
2009 - 2010 70.18 23.62 2010 - 2011 80.07 26.96
2011- 2012 146.81 49.42
Page 50
Graph3
Graph showing outstanding loan for the year 2009 – 2012.
(b) Car loan.
INTERPRETATION:
From the above graph it can be inferred that in the year 2011 – 2012 there is a substantial growth in the car loans as against all previous years
.
0 50 100 150 2009 - 2010 2010 - 2011 2011 - 2012 Year
car loan
Amount outstanding in Rs. Crore PercentagePage 51
Graph 4:
Table showing outstanding loan for the year 2009 – 2012.
(c) Personal loan
Year
Amount( in Crore)
Percentage (%)
2009- 2010 384.46 28.31
2010 - 2011 425.11 31.32
2011 – 2012 548.24 40.37
Total 1357.81 100
ANALYSIS:
From the above table it is analyzed that when we compare the year 2009 – 2010 the amount was 384.46 crore which shows 28.31%. In the year 2010 – 2011 the amount was 425.11 crore which shows 31.32% and in the year 2011 – 2012 the amount was 548.24 crore which shows the percentage of 40.37.
Page 52
Graph 4:
Graph showing outstanding loan for the year 2009- 2012.
(c) Personal loan
INTERPRETATION:
From the above mentioned graph it can be interpreted that there is a substantial growth every year in the personal loans. 0 100 200 300 400 500 600 2009 - 2010 2010 - 2011 2011 - 2012
personal loan
Amount outstanding in Rs. Crore PercentagePage 53
Table 5
Table showing outstanding loan for the years 2009- 2012.
(d) Educational loan
Year
Amount (in crore)
Percentage (%)
2009 – 2010 224.99 26.88
2010 - 2011 276.84 33.09
2011 – 2012 335.07 40.03
Total 836.9 100
ANALYSIS:
From the above table it is analysed that when we compare the year 2009 – 2010 the amount outstanding is 224.99 crore with 26.88%. In the year 2010 – 2011 the outstanding amount is 276.84 crore
Page 54
Graph 5
Graph showing outstanding loan for the year 2009 - 2012.
(d) Educational loan
INTERPRETATION:
From the above graph it is seen that there is a constant growth in the education loan of State Bank of
Mysore. There is a noticeable growth in the education loan segment which is very profitable to the bank for their further financial improvement
0 50 100 150 200 250 300 350 2009 - 2010 2010 - 2011 2011 - 2012
Outstanding education loans
Amount outstanding in Rs. Crore
Page 55
Table 6
Table showing outstanding loans to retail sector for the year 2009 - 2012
Year
Amount (in crore)
Percentage (%)
2009 – 2010 3,469.72 30.28
2010 - 2011 3,727.22 32.54
2011 – 2012 4,260.36 37.18
Total 11,457.3 100
ANALYSIS:
From the above table it is analyzed that when we compare the year 2009 – 2010 the amount was 3,469.72 crore with 30.28%. In the year 2010 – 2011 the amount was 3,727.22 crore with 32.54% and in the year 2011 – 2012 the amount was 4,260.36 crore with 37.18% .
Page 56
Graph 6
Graph showing outstanding loans to retail sector for the year 2009 - 2012.
INTERPRETATION:
From the above graph it can be inferred that there is a moderate growth in the loans of the retail sector from 2009 - 2012.The maximum growth is in the year 2011 – 2012.
0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00 4,000.00 4,500.00 2009 - 2010 2010 - 2011 2011 - 2012
Outstanding loans to retail sector
Amount in crore Percentage
Page 57
Table 7
Table showing outstanding loans to corporate sector for the year 2009 – 2012.
Year
Amount (in crore)
Percentage (%)
2009 – 2010 13,032.09 26.05
2010 - 2011 15,661.44 31.29
2011 – 2012 21,349.41 42.66
Total 50,042.94 100
ANALYSIS:
From the above table it is analysed that when we compare the year 2009 – 2010 the amount was 13,032.09 crore which shows a percentage of 26.05. In the year 2010 – 2011 the amount was15,661.44 in crore which shows the percentage of 31.29 and in the year 2011 – 2012 the amount was 21,349.41 in crore which shows the percentage of 42.66.
Page 58
Graph 7
Graph showing outstanding loans to corporate sector for the year 2009 - 2012.
INTERPRETATION:
From the above pie-chart it is inferred that there is constant growth in the outstanding loans in corporate sector.
26%
31% 43%
Outstanding loans to corporate sector
2009 - 2010 2010 - 2011 2011- 2012
Page 59
Table 8
Table showing outstanding loans to others which includes priority sector for the year
2009 - 2012.
Year
Amount (in crore)
Percentage (%)
2009 – 2010 6,138.64 24.53
2010 – 2011 8,763.02 35.03
2011 - 2012 10,118.47 40.44
Total 25,020.14 100
ANALYSIS:
From the above table it is analyzed that when we compare the year 2009 – 20010 the amount was 6,138.64 crore with 24.53%. In the year 2010 – 2011 the amount was 8,763.02 crore with 35.03% and in the year 2011 – 2012 the amount was 10,118.47 crore with 40.44%.
Page 60
Graph 8
Graph showing outstanding loans to others which includes priority sector for the year
2009 - 2012.
INTERPRETATION:
From the above graph it can be inferred that there is a noticeable growth in the outstanding loan by others which includes priority sector which is highly beneficial to the bank
.
0 2000 4000 6000 8000 10000 12000 2009 - 2010 2010 - 2011 2011 - 2012
Outstanding loan to others including priority sector
Amount in crore Percentage
Page 61
Table 9
Table showing total outstanding loans to business sector for the year 2009 - 2012.
Year
Amount (in Crore)
Percentage (%)
2009 – 2010 22,640.45 26.16
2010 - 2011 28,151.68 32.55
2011 – 2012 35,728.24 41.29
Total 86,520.37 100
ANALYSIS:
From the above table it is analysed that when we compare the year 2009 – 2010 the amount outstanding was 22,640.45 crore which shows a percentage of 26.16. In the year 2010 – 2011 the amount was 28,151.68 crore which shows the percentage of 32.55 and in the year 2011 – 2012 amount was 35,728.24 crore which shows the percentage of 41.29.
Page 62
Graph 9
Graph showing outstanding loan to business sector for the year 2009- 2012.
INTERPRETATION
:
From the above graph it is inferred that there is a substantial growth in the outstanding loan in business sector which concludes that it is highly advantageous to the bank for their further financial improvement.
26%
33% 41%
Outstanding loan to business sector
2009- 2010 2010 - 2011 2011 - 2012
Page 63
Table 10
Table showing total outstanding retail advances for the year 2009- 2012
Year
Amount (in Crore)
Percentage (%)
2009 – 2010 3,469.72 30.28
2010 - 2011 3,727.22 32.53
2011 - 2012 4,260.36 37.19
Total 11,457.3 100
ANALYSIS:
From the above table it is concluded that when we compare the year 2009 – 2010 the amount outstanding was 3,469.72 crore with 30.28%. In the year 2010 – 2011 the outstanding amount was 3,727.22 crore with 32.53% and in the year 2011 – 2012 the amount is 4,260.36 crore with 37.19%.
Page 64
Graph 10
Graph showing total outstanding retail advances for the year 2009 – 2012.
INTERPRETATION:
From the above graph it can be inferred that there is a sequential growth year wise which is highly beneficial to the State Bank of Mysore.
0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00 4,000.00 4,500.00 2009 - 2010 2010- 2011 2011 - 2012
Total outstanding of retail advances
Amount ( Rs. In crore) Percentage
Page 65
Table 11:
Table showing term loans for the years 2009 -2012
Year
Amount (in Crore)
Percentage (%)
2009 - 2010 13,983.65 30.28
2010 – 2011 19,200.56 32.53
2011 - 2012 25,991.64 37.19
Total 59,175.85 100
ANALYSIS:
From the table it can be analysed that in the year 2009 – 2010 the amount is 13,983.65 crore with a percentage of 30.28. In the year 2010 – 2011 the amount is 19,200.56 crore with a percentage of 32.53 and in the year 2011 – 2012 the amount is 25,991.64 crore with a percentage of 37.19.
