SUBMITTED TO: - PRESENTED BY,PRF-ADITI NAIDU RAHUL MISHRA

Credit Analysis of personal loan

for Indian Bank

Industry Introduction

Deposits and lending are prime functions

Major step- Nationalization of bank

Structure

Impact of banking sector in Economy

Bifurcation of Banking Sector

SBI44%

Bank of Baroda8%

PNB8%Canara Bank

5%

Bank of India5%

Union Bank4%

IDBI Bank3%

Syndicate Bank2%

Oriental Bank2%

Central Bank2%

Corporation Ban2%

UCO Bank2%

Indian Bank2%

Allahabad Bank2%

IOB2%

Andhra Bank2%

Bank of Mah1%

Dena Bank1%

State B Bikaner1%

State Bnk My1%

State Bnk Tr1%

Market Capitalisation

Introduction to Indian Bank

Premier bank owned by government of India

International presence

Diversified Banking Activities

Specialized Banking

Rural Development

Latest Technology

Objective of the Project

Internship

Credit analysis

Non-performing

assets

Credit Analysis

The project involved an in-depth study of the various Personal loans provided by Indian bank to include:

i. The loan and its features:ii. Type of loan, its features,iii. Tenure, iv. Interest rates, v. procedures for approval including eligibility

criteria, security needed The personal loans offered by Indian Bank were

compared across a number of parameters with loans offered by competing banks

Personal loans offered by Indian Bank

1. Home Loan

2. Education Loan

3. Car Loan etc.

Detailed descriptions of the above loans are in the Report

Comparison of Indian Bank interest rates with those of Competing banks(Personal

Loan)

12.50%

13.00%

13.50%

14.00%

14.50%

15.00%

15.50%

16.00%

16.50%

13.99%

14.25%

14.50%

15.00%

13.99%

16.00%

14.50%

Rate of Interest

Non performing Assets

Bank's nonperforming loans plus the real estate owned by the bank due to foreclosures.

Nonperforming assets are footnoted on the balance sheet. 

Sub-standard assets

Doubtful Assets

Loss assets

A major cause for NPA is fixation of unrealistic repayment schedule

The implementation of Basel III norms are to commence in 2013 and recapitalization is mandatory for many banking institutions

Overall assessment of Credit Analysis & Learning

Economic slowdown likely to impact the creditRBI policy, lowering policy rates Asset quality need to be closely monitoredMore impetus on fee based and non-interest

income servicesFinancial inclusion to play a key role in the near

futureBanks will expand in overseas marketMobile banking, next major technological leapCompetition set to intensify

Overall assessment of NPAs

Gross non-performing assets are set to inch up to 4.4 per cent this fiscal year from the likely of 4.2 per cent in 2012-13

Reasons:- Economic slowdown High interest rates New reporting system Aviation sector

Detecting NPA:- Scrutiny of accounts and ledger cards Scrutiny of statements External sources Computerizations of loan monitoring

Findings and Recommendation

From this project it is found that INDIAN BANK advance credit product is slowly gaining its pace in the market at Noida,

All of INDIAN BANK customers are satisfied with the services provided by the bank.

Many of these customers satisfied with the low interest rate and longer repayment period of the advance credit products.

Approximately 43% of advance credit products users said that the service of INDIAN BANK in advance credit products is excellent.

Many customers have no time to call customer care so that they are not able to know about the service & features of INDIAN BANK advance credit products.

Conclusion

Customer awareness programme is required so that more people should attract towards advance credit products.

If there are any kind of hidden charges than that must disclose to customer before giving loan to them.

Indian Bank must take some steps so that customers can get their loan on time.

INDIAN BANK should be more concern about faster settlement of customer problem

Advance credit products selling agents must not give any type of wrong information regarding advance credit products.

THANK YOU