rajkot district co-operative bank

8/13/2019 Rajkot District Co-Operative Bank

1/98

HEAD OFFICE

S REE RAJKOT DISTRICTCO-OPERATIVE BANK RAJKOT.


2/98

Project Report On

CREDIT MANAGEMENT & NPA

Of

Submitted To

SHREE SHARDA VIDYA BHAVAN

OF MANAGEMENT STUDIES

On

JULY 2O11,2012

In par!a" #$"#!""%n '# ($%%r ra!n!n) a( a par '# ($*+

In A*an- P'( Gra*$a!'n D!p"'%a !n B$(!n(( A*%!n!(ra!'n

By


3/98

CHI.ANI SONALI A/


4/98

DECELARATION

Myself CHIKANI SONALI A. Enrolment No 809140320110, Clss A!"#$ of t%e

Nme of t%e st&'y (enter S%ree S%r' )*'y +%n, #r. +-s%e- Am-e'r O/en

n*ers*ty, A%me'-e' 0 %ere-y 'e(lre t%t t%e r*n*n e/ort ent*tle' "otm o5 *n

or**nl 6or n' t%e sme %s not -een s&-m*tte' to ot%er Inst*t&te for t%e 6r' of ny

o%er 'eree.Asem*ner /resentt*on of t%e !ro7e(t e/ort 6s m'e on N!A n' t%e

s&est*on s //roe' -y t%e f(&lty 6ere '&ly *n(or/orte'.

Shard Vidya Bhavan

Rajkot

Date :-

Place :- Rajkot

___________

Chikani Sonali A.


5/98

PREFACE

+ns re rer'e' s t%e -loo' of t%e nt*ons e(onomy 6*t%o&t t%em one (nnot

*m*ne e(onomy mo*n. %erefore -ns s%o&l' -e o/erte' ery eff*(*ently, (o

o/ert*e -ns lt%o&% smll /rt of 6%ole -n*n system *n In'*, -&t t%ey re ery

*m/ortnt not only from e(onom*(l /o*nt of *e6 -&t lso from so(*l /o*nt of *e6 s *t *s

more (on(erne' -o&t (ommon /eo/les 6elfre n' 'eelo/ment.

A'n(e *s %ert n' re(oery *s o:yen for t%e -n n' for t%e -n to s&r*e *t *s

ne(essry to *e 'n(es n' re(oer t%e mo&nt t t%e //ro/r*te t*me. %ro&% (re'*t

mnement I %e tr*e' to (oer t%e r*o&s s/e(ts l*e (re'*t //r*sl, N!A

mnement, re(oery mnement, et(. E.. (re'*t mnement (oers ll t%e res r*%t

form t%e -e*nn*n l*e *n;&*ry t*ll t%e lon %s -een /*' &/.

%o&% (re'*t mnement, ery st to/*(, I %e tr*e' to *n(or/orte to t%e -est of my

(/(*ty from ll /oss*-le s/e(ts *n t%*s /ro7e(t.

I 'o %o/e t%t *nst*t&t*on 6*ll //re(*te t%*s /ro7e(t.


6/98

AKNOWLEDGEMENT

We can not determine milk of how many cows feed our body. non

I -el*ee n o(en *s f*lle' -y 'ro/s n' e(% n' eery 'ro/ s%o&l' (o&nt, s*m*lrly I

s%o&l' (o&nt for of ll my %el/ers %ere -&t t%*s not /oss*-le. So for*e me for t%e sme.

$*rst of ll I 6o&l' l*e to t%nBoard of !irectors.

I m t%nf&l to enerl mner ".#.$ara%ara to *e me /erm*ss*on for t%e s&mmer

tr*n*n.

I 6nt to e:/ress my s*n(ere o-l*t*on to B.&.'adani Sir( R.). Bhut( ).*.Ru%a%ra +.R.

Vacariya &.!.*odhani, Vasrambhai *odhani, n' ll t%e stff mem-ers of #C+, 6%ere

I 6ore' so lon *n %omely /lesnt tmos/%ere.

Es/e(*lly, I 6o&l' l*e to %n ,.V.Boda Sir n' R.V. )anara Sir, my mentor 6%o

&*'e' me *n my 6or.

I m t%nf&l to !r. R.S.Shah


7/98

OBJECTIVE OF STUDY

+n*n *s t%e (t**ty of my *nterest. I %e seen from t%e nn&l re/orts of t%e r*o&s

-ns n' f*n' t%t most of t%e*r *n(ome *s from t%e *nterest ett*n on t%e (re'*t *en so I

(%oose n' %en(e I st&'*e' on (re'*t mnement.

"me of stt*st*(s *s l6ys ttr(ts me n' -n*n *s one t%e /l(e 6%ere 6e (n lern *t

ery 6ell. So I %e sele(te' -n n' %e /referre' @(re'*t mnement > N!A s to/*(

for my /ro7e(t.


8/98


9/98

TABLE OF CONTENT

Preface

Ackno%le&'e(ent

#)jecti*e of stu&y

Research (etho&olo'y

Content

--"/$0V- S/&&R1

"+R#DC+#"

Erly %*story of -n*n

Or**n of 6or' B-n

Stt&s 6*se -*f&r(t*on of -n

y/es of -n

#C+ %e Smll Mns +* +n

PR#C+

H*story of #C +n

M*n $&n' Inflo6


10/98

CRD+ APPRASA$

A//r*sl formt

O-sert*on n' s&est*on

CRD+ /#"+#R"0, F#$$#1 P A"D R21

Cre'*t mon*tor*n system *n #C+

$ollo6 &/ (t*ons for (re'*t mon*tor*n *n #C+

O-sert*on n' s&est*on

"PA /A"A0/"+

I'ent*f*(t*on of Non !erform*n A'n(es

Asset (lss*f*(t*on

Clss*f*(t*on of Non !erform*n A'n(es

!ro*s*on for N!A

$*n'*ns


11/98

EXECUTIVE SUMMARY

Name of the student : CHIKANI SONALI A.

Name of the institution : sharda vidha bhavan

Name of the project Guide: .!. "ANAA

Name of the or#ani$ation : aj%ot &istrict Co'Operative !an%

"urpose of the "roject : Stud( of Indian !an%in# performs in

creditpo)ic( * non performin# assets

Objectives : +o stud( the Indian co'operativeban%in#

sector

+o stud( the different aspects of thefinancin# in India

+o stud( and ana)($e differentinstruments for credit mana#ement.

+o stud( the procedure for Creditatin#

in India

Steps to be ta%en ,hich are in bestinterest of the !an%.

-ethodo)o#( : +he project is a b)end of the primar(as

,e)) as the secondar( data. +he data,ere

from the !an%s past record /various

,ebsites/ pub)ications and otherprojects.

Conc)usion : +he project has been comp)etedSuccessfu))( and the objectives ,ere

met.


12/98


13/98

EARLY HISTORY OF BANKING

As erly s 2000 +.C., t%e +-ylon*ns %s 'eelo/e' -n*n system. %ere *s e*'en(e

to s%o6 t%e tem/les of +-ylon 6ere &se' s -ns. After /er*o' of t*me, t%ere 6s

s/re' of *rrel**on, 6%*(% soon 'estroye' t%e /&-l*( sense of se(&r*ty *n 'e/os*t*n money

n' l&-le *n tem/les. %e /r*ests 6ere loner (t*n s f*nn(*l 4D ents. %e omns

'*' m*n&te re&lt*ons, s to (on'&(t /r*te -n*n n' to (rete (onf*'en(e *n *t. Lon

-ns 6ere lso (ommon *n ome. $rom t%ese t%e /oor (*t*5ens re(e*e' lons 6*t%o&t

/y*n *nterest, *nst se(&r*ty of ln' for 3 or 4 yers.

#&r*n t%e erly /er*o's, lt%o&% /r*te *n'**'&ls mostly '*' t%e -n*n -&s*ness,

mny (o&ntr*es est-l*s%e' /&-l*( -ns e*t%er for t%e /&r/ose of f(*l*tt*n (ommer(e or

to sere t%e oernment.

Ho6eer, &/on t%e re*l of (**l*5t*on, ro6*n ne(ess*ty for(e' t%e *ss&e' *n t%e m*''le

of t%e 12t%(ent&ry n' -ns 6ere est-l*s%e' t )en*(e n' "eno. %e +n of )en*(e

est-l*s%e' *n 11D *s s&//ose' to -e t%e most n(*ent -n. Or**nlly, *t 6s not -n *n

t%e mo'ern sense, '&r*n s*m/ly n off*(e for t%e trnsfer of t%e /&-l*( 'e-t.

A*n t%e or**n of mo'ern -n*n my -e tr(e' to t%e money 'elers *n $loren(e, 6%o

re(e*e' money on 'e/os*t, n' 6ere len'ers of money *n t%e 14 t%(ent&ry n' lso *n 1349,

t%e -&s*ness of -n*n 6s (rr*e' on -y 'r/ers of +r(elon.

In In'*, s erly s t%e )e'*( !er*o', -n*n, *n most (r&'e from e:*ste'. %e -oos of

Mn& (ont*n referen(es rer'*n 'e/os*ts, /le'es, /ol*(y of lons, n' rte of *nterest.

r&e, t%e -n*n *n t%ose 'ys lrely m*nt money len'*n n' t%ey '*' not no6 t%e

(om/l*(te' me(%n*sm of mo'ern -n*n.

%*s *s tr&e not only *n t%e (se of In'* -&t lso of ot%er (o&ntr*es. Alt%o&%, t%e -&s*ness

of -n*n *s s ol' s &t%ent*( %*story, -n*n *nst*t&t*ons %e s*n(e t%n (%ne' *n

(%r(ter n' (ontent ery m&(%. %ey %e 'eelo/e' from fe6 s*m/le o/ert*on

*nol*n t%e st*sf(t*on of fe6 *n'**'&l 6nts to t%e (om/l*(te' me(%n*sm of


14/98

mo'ern -n*n, *nol*n t%e st*sf(t*on of (/*tl slo6ly see*n em/loyment n' t%&s

/ro*'*n t%e ery l*fe -loo' of (ommer(e.

THE ORIGIN OF WORD BANK

%e 6or' B+n *tself 'er*e' from t%e 6or' B-n(&s or B-n;&e t%t *s $ren(%. %ere

6ere ot%ers of t%e o/*n*on t%t t%e 6or' B+n *s or**nlly 'er*e' from t%e "ermn 6or'

B-( men*n 7o*nt for 6%*(% 6s Itl*n*se' *nto B-n(o.


15/98

STATUS WISE BIFURCATION OF BANKS

Scheduled Banks.

Non-Scheduled Banks.

Scheduled Banks

In f*rst s(%e'&le, "oernment of In'* not*f*es t%e !r*mry +ns, 6%*(% re l*(ense' n'

6%ose 'emn' n' t*me l*-*l*ty re not less t%n D0 (rores *n 198.

"oernment of In'* not*f*es t%e !r*mry -ns, 6%*(% re l*(ense' n' 6%ose 'emn' n'

t*me l*-*l*ty re not less t%n 100 (rores (n only ;&l*fy to -e *n(l&'e' *n t%e se(on'

s(%e'&le s*n(e 1993.

A -n -e(omes s(%e'&le' 6%en *t f&lf*ls t%e follo6*ns?

BA r'e rt*n from +I

#emn' n' *me L*-*l*ty oer 100 Crores

St*sfy t%e +I &*'el*nes relte' to C n' SL

As /er t%e norms !r*or*ty Se(tor 6*se len'*n

+enef*ts of +e*n S(%e'&le' (oo/ert*e re 'es(r*-e' -elo6?

+I 6o&l' /ro*'e e'*s(o&nt*n f(*l*ty t nom*nl rte

+I *es rem*ttn(e f(*l*ty t /r

%e 'emer*t of -e*n s(%e'&le' (oo/ert*e -n *s t%t t%e -n 6*ll not et 0.DF

s&-s*'y from +I.%e (onferment of s(%e'&le' stt&s on t%e -ns %s (ert*n 'ntes l*e ref*nn(e

f(*l*ty, '*re(tly *n'&str*l f*nn(e from esere +n of In'*, *l of esere +n of

In'* em*ttn(e f(*l*ty s(%eme, ((e/t 'e/os*ts from lo(l -o'*es, ;&s*oernment

orn*5t*on, rel**o&s, n' (%r*t-le *nst*t&t*ons, &rntees n' (%e;&es *ss&e' -y +ns

re ((e/te' -y "oernment #e/rtments. At t%e sme t*me, *t (sts reter res/ons*-*l*ty

on t%e -ns *n t%e m*ntenn(e of -oos of ((o&nts n' s&-m*ss*on of ret&rns.

#on2Scheduled Bank

%e -ns, 6%*(% re not //l*(-le s /er t%e (r*ter* of S(%e'&le' +ns, re (lle' s

Nons(%e'&le' +ns. %ese re ery smll -ns.


16/98

TYPES OF BANKS

e*onl &rl +n

Nt*onl*5e +n

Stte +n "ro&/

Coo/ert*e +n

!r*te +n

$ore*n +n

RESERVE BANK OF INDIA

%e H*ltonyo&n (omm*ss*on, //o*nte' *n 192 %s re(ommen'e' t%e ne(ess*ty of

(entrlly em/o6ere' *nst*t&t*on to %e effe(t*e (ontrol oer (&rren(y n' f*nn(*l

trns(t*on *n t%e (o&ntry. A((or'*nly, t%e "oernment %' t%en /sse' esere +n of

In'* A(t, 1934 n' est-l*s%e' t%e esere +n of In'* 6*t% effe(t from 1 stA/r*l 193D.

%e /r*n(*/l *m -e%*n' t%*s 6s to orn*5e /ro/er (ontrol oer t%e (&rren(y mnement

*n t%e *nterest of (o&ntry -enef*ts n' to m*nt*n f*nn(*l st-*l*ty. G*t% t%*s, t%e +I

m*nly loos fter t%e follo6*n *m/ortnt f&n(t*ons?

o ee/ effe(t*e (ontrol oer (ret*on of (re'*ts n' (&rren(y s&//ly

o (ontrol t%e +n*n trns(t*ons of Centrl n' Stte "oernments

o (t s Centrl 'm*n*stere' A&t%or*ty of ll ot%er +ns *n t%e Co&ntry.

o orn*5e (ontrol oer $ore*n C&rren(y rns(t*on

o ss*st for *m/roement *n f*nn(*l s/e(ts of t%e (o&ntry

#ationali3e Banks

%e +n*n Com/ny A(t est-l*s%es *t *n &ly 199 -y nt*onl*5t*on of 14 m7or -ns

of In'*. %e sent /er(ent o6ners%*/ of t%e -n *s of oernment of In'*.

State Bank *rou%

%e Stte +n of In'* 6s est-l*s%e' &n'er t%e Stte +n of In'* A(t, 19DD, t%e

s&-s*'*ry -ns &n'er t%e Stte +n of In'*


17/98


18/98

Centrl #*str*(t (oo/ert*e +n mens t%e /r*n(*/l (oo/ert*e so(*ety *n '*str*(t,

t%e /r*mry o-7e(t*e of 6%*(% *s t%e f*nn(*n of ot%er (oo/ert*e *n t%t /rt*(&lr

'*str*(t.

Primary / Uran Co-operative Banks

%e /r*mry o-7e(t*e of /r*n(*/l -&s*ness of 6%*(% t%e trns(t*on *s of -n*n -&s*ness

n' /*' &/ s%re (/*tl n' resere of 6%*(% re not less t%n r&/ees 100,000 n' -ye

l6s of 6%*(% 'o not /erm*t 'm*ss*on of ny ot%er (oo/ert*e so(*ety s mem-er.


19/98

RDCB - The Sma Ma!" B#$ Ba!%

SHI A0KO+ &IS+IC+ CO'O"1A+I21 !ANK L+&.. A 0 KO+

H I G H L I G H + S

3AS ON 45'64'76689

1) Bank was registered in 1959 and have commenced working in 1960

2) Bank is holding business Licence No !"#$ % &'( % 55 # dt1*+91199*

,) Bank is having 12- branches in the district

*) Bank having 65 its own Branch building including head o..ice

5) -2 branches having its own /a.e $eosit Lockers .acilities including')

6)3 Bank having --0 emlo4ees &s on $t ,1+0,+2006 11 in 'ead o..ice 652 in branches)

-) 101 Branches including ' are #omuteri7ed and remains will becovered within 8uarter .or 100 #omuteri7ation

) Last ,1 4ears bank is obtaining &udit #lass &;

9)


20/98

15) Bank is a4ing ma?imum dividend according to the rovisions o. the&ct3 since last 1* 4ears

16) &/ on ,1st (arch3 2006 the cost o. management was 22&verage)

1-) &s on ,1,06 .inancial margin o. the bank is ,61 and net margin is1*- level &verage)

1) #aital risk ade8uac4 ratio as on ,10,2006 is 120

19) /ince last 12 4ears Bank is receiving .irst ri7e .rom the @/#B .or thebest recover4 er.ormance &s on ,0th Aune3 2005 recover4 was99-

20) !ate o. interest on deosits are between * to -

21) (a?imum /hort


21/98

29) #ost o. management o. the societies is at the level o. 1- ercentage&s on ,1,05)

,0) Bank has introduce a @rou "& =nsurance "olic4 to cover the risk o.!s 150 lakhs .or the regular loanee members o. the societies Bankhas aid !s126 =akhs out o. total "remium o. !s 160 =akhs

,1) Bank has started the rovide medical bene.it scheme .or "/member .rom this 4ear and aid Rs.9,75,8001- to 200 kidne43 stone3cancer3 Brain 'amrage3 "aral4sis > 'eard attach atients as socialobligation o. Bank

,2) Bank is alwa4s doing relanning .or the better recover4 Bank isarranging regular meeting at taluka level laces .or the roerlanning3 in resence o. branch managers3 insectors3 7onal o..icers3$4 manager3 managers3 local directors and secretaries o. thesocieties !aEkot $istrict bi.urcated in .ive 7one headed with $4(anager Fonal Dver4 ossible e..ort are made .or better and in time100 recover4

,,) Bank has received Give times in a raw the Best "er.ormance &ward;.or its better er.ormance in all asects o. working at the /tate Levelalong with the shield3 certi.icate o. merits and cash ri7e .romN&B&!$

,*) Bank has send 56 "/ secretaries .or training at N=#(@andhinagar > aid their e?ense H !s 1000 er each

,5) Bank is a4ing !s 2500I to each new .ormatted (ilk "roducerssociet4

,6)


22/98

,9) &s er N&B&!$ and @ guidelines bank has issued 1-569Jisan #redit #ards

*0) Bank is .irst in =ndia .or launching /mart Jisan #redit #ard; .rom4r 200*05 as a additional .acilit4 to J## 'older

*1)


23/98


24/98

+OA# O$ #IECOS

SHI "HANSHAM KHAAIA

)ICE CHAIMAN

SHI )A"HAI+HAI +O#A

MANA"IN" #IECO

#. #AA+AHI !AEL

#IECO

MA"AN+HAI "HONIA

#IECO

CHHA"AN+HAI SOIA

#IECO

SHEE )IHAL+HAI A#A#IA

CHAIMAN

A)IN#+HAI A"A#IA

#IECO

"O#HAN+HAI #HAMALIA

#IECO

"AASIN" A#EA

#IECO

MOHAN+HAI KN#AIA

#IECO

+ECHA+HAI CHA#MIA

#IECO

MA"AN+HAI )A#A)IA

#IECO

ALSI+HAI ALA!AA

#IECO

#INESH+HAI +H)A

#IECO

HA#E)SIN" A#EA

#IECO

HAI+HAI AANI

#IECO

#. A"NESH+HAI OSHI

#IECOAEN#A+HAI !ONKIA

#IECO

NAN+HAI )A"HANI#IECO +HAN+HAI MEHA#IECO

K)EI+HAI +A)#IA

#IECO

LALI+HAI SA)ALIA#IECO

ANI+HAI #HOL

#IECO M..!AMA#IECO

C.N.AA!AA

"ENEAL MANA"E


25/98

Ge!e&a

S%re C/*tl n' no. Of Mem-ers

A((or'*n to lst yer t%e totl mo&nt of s%re f&n' 6s 1903.4D L(s. In t%t t%e

totl *n(rese 6*t%*n t%*s yer 23D.48 L(s on 3103200D t%e totl s%re %ol'er 6s 802

'&r*n t%*s yer 41 ne6 '' n' 4 %s lee t 3130 t%e follo6*n /rt*(&lr of 839mem-er.

In'e: !rt*(&lr S%re %ol'er S%re (/*tl s. Inl(

1 Ar*(&lt&re (oo/ert*e Mn'l* 44 1D.00

2 Non Ar* . (o o/ert*e Mn'l* 24 211.11

3 Ot%er Mn'l*es 2 8.

4 !eo/le CoO/ert*e +n 13 110.8

D l& Mn'l* 19 39.82

M*l /ro'&(e Mn'l* 0 3.18

Ho&s*n Mn'l* 14 2.028 Gter *rr*t*on Mn'l* 12 2.29

9 O*l /ro'&(t*on Mn'l* 2 1.0

Reser*e an& fun&

At t%e en' of 31030D totl mo&nt 6*t% f&n' 6s 9084.1D '&r*n t%e yer t%e

*n(rese of mt. s. D0.98 t t%e en' of t%e yer t%e totl mt. *s 93D.11 Ls .

Sa*in's

In t%e /resent t*me of l*-erl*5t*on > lo-l*5t*on *n -n*n se(tor *s f(*n%*%ly (om/et*t*on '&e to lre net6or n' s&ff*(*ent f&n', n' ttr(t*e s(%eme of

/r*te > Nt*onl*5e -n t%ey re m*n lots of /rof*t from t%e lons of (rores of s.

#&e to t%*s s*t&t*on, t%e CoO/ert*e -ns smll net6or. L*m*te' f&n's n'

smll -&s*ness of (*tys > *lle, n' l*m*te' lons 6%*(% 'e(*'e' -y NA+A#, n'

6%*(% !rof*t m'e t%t lso 30F t:-le ((or'*n to t%*s -&'et Anno&n(e'.

#&r*n t%*s str&le t%*s -n %s *n(rese t%ere s*n 232 (rores to Crore

6*t%*n lst ten yer.

n*est(ent of fun&s.

n'er &*'*n of +I > NA+A# n' t%e oernor r&les s 1 t%e -n s%o&l' *nestt%ere f&n' *n (entrl ot. stte ot or re tr&st se(&r*t*es 6%*(% '*s(&s more 'et*l -e%*n'.

4ternal De)t

N-' %s !t t%e ne6 s(%eme for -ns t%t '*fferent s(%emes re s &n'er.


26/98

In'e: !rt*(&lr Amt


27/98

"on A'riculture $oan

Rural 0o&a%an Yojana

er 200D0 ot of In'* %s strte' follo6*n s(%eme 6*t% s&-'&es .

In'e: er No. of "o'6notl (/(*ty

of o'6n

!*' s&-s*'y

mt.


28/98

MAIN FUND INFLOW 'SOURCES OF FUNDS(

O6ne' 'e/os*t

#e/os*ts

+orro6*nsOt%ers

!"ned deposit

%e o6ne' f&n's (ons*st*n of /*' (/*tl of t%e -n, resere f&n', n' ot%er reseres.

Deposits

It *s s&m of (&rrent 'e/os*ts, f*:e' 'e/os*ts, s*n 'e/os*ts, s/e(*l s*n 'e/os*ts, NI

'e/os*ts, *no/ert*e 'e/os*ts, et(. It *s t%e m*n Cs% Inflo6 for ny *nst*t&t*on.

Borro"in#s

%e -orro6e' f&n's (ons*st*n of -orro6*ns from ot%er -ns


29/98

MAIN FUND OUTFLOW 'FUNDS USED(

C


30/98

)oanale +und

Cre'*t 'e/os*t rt*o *s not more t%n 0F.

Lon-le f&n's mens mo&nt of money, 6%*(% *s //l*(-le for len'*n. %ree m*n

f(tors o6n f&n', 'e/os*ts, n' -orro6*ns 'e(*'e *t. A'n(es (n neer -e more t%n

lon-le f&n'.

Lon-le f&n' *s totl of?

DF of o6n f&n's

0F of 'e/os*ts

100F of -orro6*ns

!thers

!&r(%se of f*:e' ssets, /&r(%se of mret-le se(&r*t*es, ''*t*on to 'n(es, ''*t*on to

*nentor*es, /yment to (re'*tors, /yment of '**'en', et(..


31/98

&eanin6 of "redit

%e 6or' B(re'*t *s (t&lly 'er*e' from t%e Lt*n 6or' BCre'ere. BCre'ere mens to

%e tr&st or f*t%. %&s B(re'*t *s '*re(tly relte' 6*t% tr&st. %t *s 6%y Stte $or' stte'

t%t BCre'*t *s not%*n more t%n t%t of tr&st. +y t%*s 6e (n sy t%t (re'*t *s tool t%t *s

res&lte' -y t%e (om/lete m&t&l tr&stf*t%.

BCre'*t (ret*on *m/l*es s*t&t*on 6%en -n my re(e*e *nterest s*m/ly -y /erm*tt*n

(&stomer to oer'r6 t%e*r ((o&nts or -y /&r(%s*n se(&r*t*es n' /y*n for t%em *ts o6n

(%e;&e or -n my /y mo&nt to -orro6er or '*re(tly to seller of oo's 6%om *nst

-orro6er et mo&nt.

"R-!0$ *-&-#$

Cre'*t mnement mens t%e totl /ro(ess of len'*n strt from *n;&*ry from /otent*l

-orro6er to re(oer t%e len'*n mo&nt from -orro6er. G%eneer my st&'y *s (on(ern,

(re'*t mnement *n sense of -n*n se(tor *s t%e set of (t**t*es l*e E:(e/t //l*(t*on,

lon //r*sl, S%% /ost*n, mon*tor*n, re(oery, N!A mnement, et(.


32/98

54R&S 45 "R-!0$9!V#"-S

Lon


33/98

Bills Purchase

%e +ner (re'*ts (&stomers ((o&nt 6*t% t%e mo&nt of t%e -*ll fter 'e'&(t*on %*s

(%res. As t%e 'emn' -*lls re re/y-le on 'emn' n' t%ere *s no mt&r*ty, t%e -ner

*s ent*tle' to 'emn' t%e*r /yment *mme'*tely on /resentt*on -efore of 'r6ee. %e*r

/r(t*(e 'o/te' *n t%e (se of 'emn' -*lls, *s no6n s /&r(%se of t%e -*lls.

Bills Discount

In (se of -*lls '*s(o&nt*n, -n (re'*ts t%e mo&nt of t%e -*ll to t%e 'r6ers ((o&nt

-efore t%e rel*5t*on of t%e -*ll n' t%&s len's *ts f&n's to %*m fter 'e'&(t*on %*s (%res.

%e -*lls /&r(%se' n' -*lls '*s(o&nte' -y -n re, t%erefore, s%o6n *n *ts -ln(e s%eet

s /rt of lons n' 'n(es. In (se of -*ll mt&r*n fter /er*o' of t*me m:*m&m for

180 'ys *n #C+, t%e -ner ret*ns t%e -*ll for t%t /er*o' n' rel*5es t%e mo&nt of -*ll

from t%e 'r6ee on *ts '&e 'te. %*s /r(t*(e *s (lle' '*s(o&nt*n of t%e -*ll.

Bank uarantee

It *s (ontr(t to /erform t%e /rom*se or '*s(%re t%e l*-*l*ty of t%*r' /erson *n (se of

%*s 'ef&lt. In (se of &rntee, +n *s t*n res/ons*-*l*ty to /y t%e mo&nt to seller *f

-&yer 6*ll not /y mo&nt *n t*me.


34/98

$0&- W0S- B05/R"$04# 45 !V#"-S

S%ortterm $*nn(e ? / to 2 mont%s

Me'*&mterm $*nn(e ? 2 to mont%s

Lonterm $*nn(e ? A-oe mont%s

S-"/R0$1 W0S- B05/R"$04# 45 !V#"-S

Se(&re' $*nn(e A'n(es?

Se(&re' A'n(es re t%ose 'n(es, 6%*(% /ro*'e -sol&te sfety to t%e +ner -y

mens of (%re, (rete' on t%e tn*-le ssets of t%e -orro6er *n for of t%e +ner. In

s&(% (ses, t%e +ner ets (ert*n r*%ts *n t%e tn*-le ssets oer 6%*(% (%re *s

(rete'. A Se(&re' Lon or A'n(e mens lon or 'n(e m'e on t%e se(&r*ty of

ssets, t%e mret l&e of 6%*(% *s not t ny t*me less t%n t%e mo&nt of s&(% lon or

'n(e.

nse(&re' $*nn(e A'n(es?

nse(&re' Lon or A'n(e mens lon or 'n(e, 6%*(% re not se(&re', t%*s ty/es of

'n(es *s not /refer-le for ny -n*n *nst*t&t*ons.


35/98

)R4"-SS 45 "R-!0$

A//l*(t*on *n6r'

S%% re/ort

A'o(te re/ort

+rn(% re/ort

Lon re/ort

Ins/e(t*on re/ort

Comm*ttee re/ort

$&lf*ll (on'*t*ons

E;&*t-le morte n' e;&*t-le e:tens*on

Mes*n 'o(&ment

O/en ((o&nt

Ins&rn(e /ost*n

e(or' 'e/rtment f*l*n

'n"ard application

A (&stomer see*n n 'n(e *s re;&*re' to s&-m*t n //ro/r*te //l*(t*on form. %ere

re '*fferent ty/es of //l*(t*on forms for '*fferent ty/es of 'n(es *l-le. %e

*nformt*on f&rn*s%e' *n t%e //l*(t*on (oers, *nter l*s, t%e follo6*n? nme n' ''ressof t%e -orro6er n' %*s est-l*s%ment, t%e 'et*ls of -orro6ers -&s*ness, t%e nt&re n'

mo&nt of se(&r*ty offere'. %e //l*(t*on form %s to -e s&//orte' -y r*o&s n(*llry

sttements l*e t%e f*nn(*l sttements n' f*nn(*l /ro7e(t*ons of t%e f*rm. A se/rte

*n;&*ry 'e/rtment *s set &n'er t%e lon 'e/rtment. Here, '*fferent ty/es of //l*(t*on

forms re *l-le n' (olle(t /ro(ess (%re from -orro6er //l*(t*on *s ((e/te' n'

entere' *nto (om/&ter.

Shakh report

%*s *s one of t%e strnest f(*l*ty of #C+ (om/re 6*t% ot%er (oo/ert*e -ns *n

7ot '*str*(t -e(&se of *ts (om/&ter*5t*on. %*s f(*l*ty /ro*'es -n to totl B kundali

of t%e -orro6er relte' to 'el*n 6*t% -n not only s -orro6er -&t lso s /rtner, s

'*re(tor lso s &rntor n' sme 'et*l of t%e &rntor lso n' lso -o&t ll t%e ty/es


36/98

of lons, 6%*(% re lre'y /*' &/, 6%*(% re oer'&e, 6%*(% re r&nn*n n' lso -o&t

/st /erformn(e of /rt*(&lr.

dvocate report

+n t%ro&% *ts lel 'e/rtments stff *n t6o mtters /re/res 'o(te re/ort mostly,

6%*(% re *en -elo6?

In (se of ln' n' -&*l'*n lon

+efore e;&*t-le of *mmo-le /ro/erty s se(&r*ty

G%en t%e -n /re/res 'o(te re/ort, -n (%res some mo&nt from -orro6er.

Branch turn over report

%*s re/ort mostly /re/re *n (se of (s% (re'*t re*e6rene6, *s lso no6n s -rn(%

t&rn oer re/ort. %*s re/ort /resents?

!erformn(e of -orro6er 6*t% t%e -rn(% *n /re*o&s yer

#e-*t(re'*t trns(t*on of -orro6er,

S&-m*ss*on of sto( sttement,

!yment of *nterest

Lst o&tstn'*n -ln(e

Processin# of application/loan report

%e //l*(t*on *s /ro(esse' -y t%e (ler*(l stff n' (%e(e' n' /sse' -y sen*or lon

off*(er n' mon*tor*n -y lon mner. %e /rel*m*nry *noles n e:m*nt*on of t%e

follo6*n f(tors?

A-*l*ty, *nter*ty, n' e:/er*en(e of t%e -orro6er *n t%e /rt*(&lr -&s*ness

"enerl /ros/e(ts of t%e -orro6ers -&s*ness

!&r/ose of 'n(e

e;&*rement of t%e -orro6er n' *ts reson-leness

A'e;&(y of t%e mr*n

!ro*s*on of se(&r*ty

!er*o' of /yment

An' /re/re t%e //r*sl re/ort for (omm*ttee //rol


37/98

'nspection report

+efore /resent*n //r*sl re/ort *nst t%e (omm*ttee, -n sen's %*s f*el'

off*(er*ns/e(t*on off*(er to on s*te *ns/e(t*on. %e s*t&t*on 6%*(% (rete' -y -orro6er -y

/ro*'*n *nformt*on of %*s -&s*ness to -n *s *t f(t or not After t%e *ns/e(t*on re/ort,

t%*s //l*(t*on *s re'y for /&tt*n *nst t%e lon (omm*ttee of t%e -n. Ins/e(t*on r*es

((or'*n to t%e r*o&s lons. $or e..

In (se of (s% (re'*t %e /ersonlly *s*ts t%e -&s*ness s*te n' er*f*es t%e or**nl -oos of

((o&nts 6*t% t%t of s&-m*tte' -oos of ((o&nts. He er*f*es t%e rel sto( 6*t% t%e sto(

ment*one' *f ny '*fferen(e *s fo&n' *t *s (lerly ment*one' *n t%e re/ort.

In (se of %o&s*n lon *ns/e(t*on off*(er *s*ts t%e /l(e n' (%e( 6%et%er t%e -&*l'*n *s

relly *n e:*sten(e or not, 6%et%er t%e (onstr&(t*on *s s /er t%e stt*(l f*&re /ro*'e' to

%*m n' /ln *s s /er sn(t*one' -y t%e m&n*(*/l (or/ort*on.

Committee approval and terms and conditions

On(e t%e //l*(t*on *s '&ly /ro(esse', *t *s /&t for sn(t*on to t%e //ro/r*te &t%or*ty.

Here //ro/r*te &t%or*ty mens r*o&s lon (omm*ttees, stn'*n (omm*ttee n' -or' of

'*re(tors. Lon mner *s sn(t*on*n &t%or*ty only *n (se of re*e6 of (s% (re'*t

f(*l*ty. y/es of (omm*ttee n' *ts len'*n /o6ers re *en -elo6?If //ro/r*te &t%or*ty *es sn(t*on, lon 6*t% t%e sn(t*on of 'n(e t%e -n

s/e(*f*es t%e terms n' (on'*t*ons //l*(-le to t%e 'n(e. %ese &s&lly (oer t%e

follo6*ns?

%e mo&nt of lon or m:*m&m l*m*t of t%e 'n(es

%e nt&re of t%e 'n(es

%e /er*o' for 6%*(% 'n(e *s l*'

%e rte of *nterest //l*(-le to t%e 'n(e

%e /r*mry se(&r*ty to -e (%re'

%e *ns&rn(e of t%e se(&r*ty

%e 'et*l of (ollterl se(&r*ty, *f ny, to -e /ro*'e'

%e mr*n to -e m*nt*n

Ot%er restr*(t*ons or o-l*t*ons on t%e /rt of t%e -orro6er


38/98

Name !f Committee

1. +or' of '*re(tors

2. Stn'*n (omm*ttee

3. e(ons*'ert*on (omm*ttee

4. Lon (omm*ttee


39/98

It *s (ommon -n*n /r(t*(e to *n(or/orte *m/ortnt terms n' (on'*t*ons on stm/e'

se(&r*ty 'o(&ment to -e e:e(&te' -y t%e -orro6er. te of stm/ '&t*es re *en follo6s?

#emn' /rom*ssory note ? s. 1

Letter of &rntee ? s. 0

JAreement letter / to D,00,000 ? s. D0


40/98

%*s //l*(t*on *s no6 *n t%e 'o(&ment 'e/rtment, 'o(&ment 'e/rtment te s*nt&re of

lonee n' &rntors *n s/e(*men (r' n' lso on t%e sn(t*on letter to set -es*'e n'

er*fy ll t%e 'o(&ments. y/es of 'o(&ments re '*s(&sse' *n e(% ty/e of lon se/rtely.

%*s /ro(ess *s lst for -orro6er, fter t%*s lon *s sn(t*one'. No forml*ty *s rem*n*n t

t%e -orro6er s*'e.

!pen account

No6 lon *s sn(t*one', ll forml*t*es re (om/lete'. So -n *s **n yo&r mo&nt of

lon e*t%er -y (re'*te' *n yo&r ((o&nt or /y t%e mo&nt to t%e /rty, 6%ose ;&ott*on *s

/ro*'e' -y -orro6er to -n. +n o/ens yo&r ((o&nt 6*t% %*mself to et t%e (t&l

trns(t*on -et6een -n n' -orro6er.

'nsurance postin#

It *s m&st for lonee to *ns&re t%e /ro/erty or e;&*/ment, 6%*(% *s %y/ot%e(te' 6*t% t%e

-n *nst lon s se(&r*ty. %*s /ol*(y *s ss*ne' *n for of -n, 6%*(% *s lso

re;&*re'. In (se of *mmo-le /ro/erty or ne6 /&r(%se of m(%*nery, e;&*/ment, et(.

*ns&rn(e of sme mo&nt n' *n (se of ol' m(%*nery, oo's sto(, et(. t6*(e of t%e /r*(e

*ns&rn(e *s nee'e'. In (se of e'&(t*on lon, t%e l*fe *ns&rn(e of st&'ent *s re;&*re'.

S%% 'e/rtment *s /ost*n *t *n -orro6ers ((o&nt.

$ecord department 2 filin#

No6 totl /ro(ess *s oer n' 6%ole 'o(&ments re nee' f*l*n for -n re(or'. e(or'

'e/rtment 'oes t%*s 6or. e(or' 'e/rtment f*le t%e 'o(&ments n' store *t to /ro/er

/l(e.


41/98


42/98

0eneral li'i)ility Criteria For Cre&it n RDC3

As /er t%e r&les of (oo/ert*es, ny one 6%o 6nts to *l f*nn(e %s to -e(ome

mem-er of t%e -n.

As s%re%ol'er of t%e -n, %es%e %e to me (om/&lsory 'e/os*t, or t%e

/yment of 'e/os*t s /er r&les n' re&lt*ons of t%e -n n' t%erefter, %es%e (n

s&-m*t t%e //l*(t*on for lon. In ll t%e/r(t*(e 6*t% t%e -n, yo& re no6n -y

-n t%ro&% yo&r (om/&lsory 'e/os*t n&m-er.

%e //l*(t*on 6*ll %e to -e s&-m*tte' *n t%e /res(r*-e' form, 6%ere*n ll 'et*ls

n' /rt*(&lrs 6*ll %e to -e f&rn*s%e' s 'emn'e' *n t%e form. Hes%e %s to

s&-m*t f&rt%er /rt*(&lrs s my -e se' -y t%e -n.

%e lonee 6*ll -e 'n(e' lon *nst t%e se(&r*ty n' %es%e %s to s&-m*t 1 or 2

&rntors, 6%o 6*ll -e t%e re(on*5e' mem-er n' ((e/te' to t%e -n.

%e *nterest 6*ll -e (l(&lte' on mont%tomont% -s*s.

*n *n *e6 t%e totl mo&nt of lons ten for '*fferent /&r/ose -y t%e f*rm or

*n'**'&l, t%e *nterest 6*ll -e (l(&lte' t t%e sme rte on ll t%e 'n(es.

It 6*ll -e ne(essry to me /yment of s%re 'e/os*t or lon 'e/os*t t t%e rte of

2.DF of t%e sn(t*on *n (se of se(&re' lon n' DF of sn(t*one' lon or *n (se of

&nse(&re' lon. %e m:*m&m s%re 'e/os*t ((e/te' of s.2D000 n' ''*t*onl

'e/os*t oer s.2D000 6*ll -e ((e/te' s lon 'e/os*t.

%e rte of *nterest on s%re 'e/os*t *s 1DF n' t%t on lon 'e/os*t *s 10F.

%e (om/ny, 6%o 6nts to te lon from -n, %s to et *ts nme re*stere' for

t%e s*' lon /&r/ose 6*t% t%e re*strr of (om/n*es n' %s to s&-m*t t%e 'o(&ment

of re*strt*on (%re to t%e -n.

In (se of morte of *mmo-le /ro/erty ste/s re *en -elo6?

*tle (ler re/ort

E;&*t-le morte on non7&'*(*l stm/ //er

mount of sanctioned loan loan of non-1udicial stamp paper for e*uitale

mort#a#e

/ to 1D,00,000 12F of sn(t*one' lon

A-oe 1D,00,000 1F of sn(t*one' lon !$s.1,00,000


43/98

Some t*me /ro/erty 6%*(% *en *n morte -y -orro6er *s lre'y /&t -efore t%e

-n *n (se of ot%er lon s se(&r*ty t t%t t*me e;&*t-le morte *s lre'y

'one -y /rty so t%ere *s no nee' of e;&*t-le morte *n -&t t%e e;&*t-le

e:tens*on *s only nee'e'.

In (se of *mmo-le /ro/erty or ne6 /&r(%se of m(%*nery, e;&*/ment, et(.

*ns&rn(e of sme mo&nt n' *n (se of ol' m(%*nery, oo's sto(, et(. t6*(e of

t%e /r*(e *ns&rn(e *s nee'e'. In (se of e'&(t*on lon, t%e l*fe *ns&rn(e of st&'ent

*s re;&*re'.

Mr*n money mens / -et6een /&r(%se l&e n' -n f*nn(e. +n l6ys

'oes /yment '*re(tly to t%e seller. So lonee %s to 'e/os*t t%e mr*n money *n t%e

-n.


44/98

'N($S( $( !N 3$'!US D3NCS

)articulars 0nterest rate 0nstallment 9Rs.:;;;

#umber of

installment

/ to 2D000


45/98

Scrutiny of credit

G%*le s(r&t*n*5*n n //l*(t*on from t%e -n tes *nto (ons*'ert*onsfety, l*;&*'*ty,

/&r/ose /rof*t-*l*ty, se(&r*ty, n' s/re' of 'n(es.

Safety

+n %s to see t%t t%e /ros/e(t*e -orro6er *s rel*-le &ser of t%e f*nn(e n' -ns

money *s sfe *n %*s %n's.

)i*uidity

+n %s to f*n' o&t t%t t%e -orro6er *s ;&*te (/-le *n re/y*n t%e f*nn(e 6*t%*n

reson-le /er*o'.

Purpose

%e /&r/ose for t%e f*nn(e s%o&l' not -e *llel. It s%o&l' -e (ret*e, ser*(e or*ente',

'eelo/ment or*ente', n' l*e. +ns s%o&l' (%e( en' &se of f&n's.

Profitaility

If t%e /ro7e(t or t%e /&r/ose of t%e f*nn(e *s not /rof*t-le *n t%e %n's of t%e -orro6er t%n

%e 6*ll not -e *n /os*t*on of re/y*n t%e mo&nt to -n. It s%o&l' -e /rof*t-le eno&% to

enerte t%e *n(ome to st*sfy %*s nee's n' -ns '&es.

Security

%e -n %s to te *nto (ons*'ert*on t%e (%r(ter, (/(*ty, n' (/*tl of t%e

/ros/e(t*e -orro6er. +*er 'n(es n' (s% (re'*t re to -e se(&re' 6*t% (ollterl

se(&r*ty oer n' -oe /r*me se(&r*ty.

Spread of advances

$or %*n -ln(e' e(onomy t%e -n s%o&l' (%oose to s/re' t%e f*nn(e monst r*o&s

se(tors of t%e so(*ety, so t%t t%e r*s of *n(om*n -' 'n(es *s m*n*m*5e'. Con(entrt*on

on one ty/e of 'n(es my t&rn *nto -' 'n(es *f t%e s(%eme -e(omes *neffe(t*e '&e

to some nt&rl (lm*t*es or oernment r&les or (%ne *n tste or 'emn's of t%e so(*ety,

-y n' lre.


46/98

$1)-S 45 "R-!0$

S&rety Lon

)e%*(le Lon

Se(&r*ty Lon

#omest*( A//l*n(es Lon

"ol' Lon

Ln' An' +&*l'*n LonIn'&str*l +&*l'*n Lon

E'&(t*onl Lon

$.#. Lon

Cs% Cre'*t

Oer'rft

+n-le Lon

+*lls !&r(%se

+*lls #*s(o&nt*n

+n "&rntee

Stff Lons

Stff S&rety Lon

Stff Ho&s*n Lon

Stff )e%*(le Lon


47/98

-)'#$04# 45 '' $1)-R 45 "R-!0$

Surety 'oan

!&r/ose !ersonl &se

L*m*t s. D000 to 10000

te of *nterest 1F

!er*o' 40 mont%s

e/y-le E;&te Mont%ly *nstllments s.32 /er t%o&sn'

Se(&r*ty !ersonl "&rntee of t6o mem-ers of t%e -n

#o(&ments Lon A//l*n(es form, Letter of &rntee, #! note, letter of Sn(t*on.

S&-m*t !/er In (se of ser*(e /erson /y slee/, *n (se of -&s*ness/erson lst yerly

-&s*ness re/ort.

Ot%er terms

F of t%e lon mo&nt *f t%e lon *s sn(t*one' to t%e t&ne of s. D000 n' 1F of t%e lon

mo&nt *s sn(t*one' to t%e t&ne of s. 10000 6*ll %e to -e 'e/os*te' *n t%e -enef*t f&n'.

n'er t%e -oe s(%eme, *f t%e 'et% of t%e lonee &n'er s&rety lon o((&rs, *n t%e s*'

(*r(&mstn(es, *n rem*n*n lon *n %*s ((o&nt 6*ll -e (re'*te' from t%*s ((o&nt &n'er %*s

lon ((o&nt n' n mo&nt of s. 1000, s Ass*stn(e 6*ll -e /*' to t%e %e*rs of t%e lonee

*mme'*tely from t%*s f&n'

%e (onf*rme' oernment em/loyee (n -e rnte' lon of s. 10000 on ((e/tn(eletter ten from %*s em/loyer to t%e effe(t t%t t%ey 6*ll 'e'&(t t%e *nstllment from %*s

slry eery mont% re&lrly n' rem*t t%e sme to +n.

It *s not //l*(-le t%t t%e s&rety lon of ot%er (oo/ert*e so(*ety *s *n /resen(e.

Security 'oan 76ainst &achinery95urniture < 5i=tures9->ui%ments=

!&r/ose $or /&r(%s*n NEGOL# m(%*ner*esf&rn*t&re for -&s*ness /&r/ose

L*m*t Any l*m*t s /er re;&*rement

Mr*n 2DF to 40F

te of *nterest / to 2D000 12F,

2D001 to 200000 14F

Security 'oan 76ainst *ood Stock8


48/98

!&r/ose !ro*'e lon *nst oo' sto(

L*m*t Any l*m*t s /er re;&*rement

Mr*n 40F

te of *nterest / to 2D000 12F,

2D001 to 200000 14F,

200001 to 1000000 1DF,

A-oe 1000000 1F

!er*o' 40 mont%s &/ to 200000, mont%s -oe 200000

e/y-le E;&te Mont%ly *nstllments s.32 /er t%o&sn' &/ to s.200000, *n (se

of more t%n 200000 s. 23 /er t%o&sn'

Se(&r*ty %e Hy/ot%e(t*on of oo's /&r(%se' s /r*me se(&r*ty, As Collterl

se(&r*ty


49/98

'and nd Buildin6 9 0ndustrial Buildin6 'oan

!&r/ose $or /&r(%se or (onstr&(t*on or re/*r*n of *mmo-le /ro/erty

L*m*t s. 1000000 or l&e of t%e /ro/erty 6%*(% eer *s less *n (se of se(&re'

lon for %o&s*n /&r(%se or (onstr&(t*on

$or *n'&str*l /&r/ose s /er re;&*rement

s. D000 M:*m&m


50/98

Lonee *s re;&*re' to /y t%e 'o(&ment *ns/e(t*on n' 'o(te fee lon 6*t% /ro(ess

(%re s /er t%e rte t*met*me 'e(*'e' -y t%e -n.

In (se of se(&re' lon, 6%en t%e lon *s *en for /&r(%se of (onstr&(t*on of t%e

*mmo-le /ro/erty, t%e f&ll *ns&rn(e of t%e l&e of (onstr&(t*on *s re;&*re' to -e ten

o&t. In (se of (ollterl of &nse(&re' lon, t%e *ns&rn(e of 'o&-le t%e l&e of t%e

sn(t*one' lon *s re;&*re' to -e ten o&t from t%e *ns&rn(e (om/ny re(on*5e' -y t%e

-n. %e *ns&rn(e /ol*(y *s re;&*re' to t%e ss*ne' to t%e -n.

In (se of &nse(&re' lon, t%e //l*(nt %s to s&-m*t t%e or**nl 'o(&ment s%o6*n t%e

o6ners%*/ of t%e *mmo-le /ro/erty. $or t%*s ty/e of lon, no *ns*sten(e *s *en for t*tle

(lern(e. +&t t%e //l*(nt %s to s&-m*t In'emn*ty +on' on stm/ //er of 1D0 6%eneer

t%e 'emn' of -n n' ne(essry s /er t%e '*(e of t%e lel ret*ner of t%e -n. %e

*ns&rn(e for t%e l&e of -&*l'*n 6*ll %e to -e ten oer n' t%e *ns&rn(e /ol*(y 6*ll

%e to -e ss*ne' to t%e -n.

"onstruction 'evel nd mount )assin6 Slab "hart

NO. O$

INSALME

N

!AICL

A

!O

"ON#

$LOO

!O 1St.

$LOO

!O 2 N#

$LOO

1 !l*nt% leel 20F 20F 20F

2 L*ntel leel 20F 20F

10F

20F

10F

3 Sl- 30F 10F

10F

10F

10F

4 !lster, t*les,

ele(tr*(,

!l&m-*n

20F 20F 20F

D Com/let*on 10F 10F 10F

Vehicle 'oan


51/98

!&r/ose !&r(%se of ne6 t6o 6%eeler/&r(%se of fo&r 6%eeler ol'ne6

L*m*t As /er 'emn'

Mr*n 2DF


52/98

It *s ne(essry to te f&ll (om/re%ens*e *ns&rn(e for t%e e%*(le, for 6%*(% t%e %*%er

/&r(%se reement *s 'one *n for of t%e -n. %e -oe *ns&rn(e 6*ll %e to -e ten

from t%e *ns&rn(e (om/ny re(on*5e' -y -n n' 6*ll %e ss*n *n for of t%e -n.

+n s%ll me '*re(t /yment to t%e 'elerseller.

In (se of se(on' %n' e%*(le, ne(essry l&t*on re/ort from re(on*5e' l&er to -e

s&-m*tte' to t%e -n.

*old 'oan

!&r/ose !ersonl &se

L*m*t s. D0000


53/98

!&r/ose o ss*st t%e smll s(le *n'&stry

L*m*t s 200000

Mr*n 2DF to 40F

!er*o' 40 mont%s

te of *nterest / to 2D000 12F

2D001 to 200000 14F

e/y-le E;&te' mont%ly *nstllments of 32 s. !er t%o&sn'

Se(&r*ty As (ollterl se(&r*ty %o&se /ro/erty of lonee or &rntor or f*:e'

'e/os*ts or nt*onl s*n (ert*f*(tes s morte 0F of sn(t*one'

lon, &rntee of t6o &rntors

#o(&ments E;&*t-le morte of /ro/erty, lon //l*(t*on form, letter of &rntee,

#! note, letter of sn(t*on, *ns&rn(e /ol*(y

S&-m*t !/er S%o/ A(t L*(ense, SSI l*(ense, Ele(. Conne(t*on /roof, ent re(e*/t,

/ro7e(t re/ort

Ot%er terms

%*s lon *s sn(t*one' on t%e re(ommen't*on of '*str*(t *n'&str*l (enter fter se(&r*ty n'

t*n *n *e6 t%e l&e of se(&r*ty *en *nst lon n' /rt*(&lrs of &rntor.

Amo&nt of s&-s*'y *en n' sn(t*one' to t%e //l*(t*on *s (re'*t *n %*s lon ((o&nt.

%e /yment e:(e/t mo&nt, 6%*(% *s sn(t*one' *nst 6or*n (/*tl, of t%*s lon *sm'e '*re(tly to t%e /rty, 6%o %s *en t%e ;&ott*on.

$y%e of business condition of subsidy

r'*n f*rm D00 or 10F of lon mo&nt 6%*(%eer *s less

Ser*(e se(tor 10000 of 10F of lon mo&nt 6%*(%eer *s less

Mn&f(t&r*n f*rm 20000 or 10F of lon mo&nt 6%*(%eer *s less

4ver !raft

!&r/ose o f&lf*ll t%e nee' of 6or*n (/*tl of -&s*ness

L*m*t As /er re;&*rement

Mr*n 40F

!er*o' / to 1 yer


54/98

te of *nterest / to 2D000 12F

2D001 to 200000 14F

20001 to 1000000 1DF

A-oe 1000000 1F

e/y-le %e (&stomer *s /erm*tte' to 6*t%'r6 t%e mo&nt s n' 6%en %e nee's *t

n' to re/y *t -y mens of 'e/os*t *n %*s ((o&nt s n' 6%en *t *s fes*-le

for %*m

Se(&r*ty Hy/ot%e(t*on of oo's sto( n' or e;&*t-le morte of /ro/erty

&rntee of t6o &rntors

#o(&ments Oer'rft //l*(t*on form, letter of &rntee, e;&*t-le morte of

/ro/erty, #! note, letter of (ont*n&*ty, letter of sn(t*on, *ns&rn(e /ol*(y

S&-m*t //er Lst t%reeyer -&s*ness re/ort, rent re(e*/t, I ret&rn, s%o/ (t l*(ense

"ash credit 76ood stock8

!&r/ose o meet t%e nee' of 6or*n (/*tl -&s*ness &n*t

L*m*t As /er re;&*re

Mr*n 40F

!er*o' 12 mont%


55/98

S&-m*t //er Lst t%ree yer +&s*ness e/ort, S%o/ A(t L*(ense, SSI L*(ense, ele(tr*(*ty

(onne(t*on /roof, I ret&rn, rent re(e*/t

If //l*(nt *s /rtners%*/ f*rm

!rtners%*/ 'ee' (o/y, e. of f*rms

If //l*(nt *s l*m*te' (om/ny

esol&t*on for ett*n lon, memorn'&m of sso(*t*on, rt*(les of t%e

sso(*t*on, letter of ss&rn(e for re*strt*on *n re. of (om/n*es

Ot%er terms

Lonee %s to s&-m*t t%e sto( sttement to t%e -n eery mont% re&lrly.

Lonee %s to s&-m*t t%e -ln(e s%eet, /rof*t n' loss ((o&nt eery yer.

Lonee %s to s&-m*t t%e (o/y of *n(ome t: ret&rn or *n(ome t: ssessment or'er eery

yer.

In t%e (s% (re'*t ((o&nt f(*l*ty, t%e t&rn oer 6*ll to -e 'one t%r*(e of t%e sn(t*one'

f(*l*ty 6*t%*n mont% n' t%e sme 6*ll %e to -e 'one f*e t*mes of t%e sn(t*one'

f(*l*ty 6*t%*n one yer.

%e *ns&rn(e for t6*(e t%e l&e of sn(t*one' (s% (re'*t 6*ll %e to -e ten oer n'

t%e *ns&rn(e /ol*(y 6*ll %e to -e ss*ne' to t%e -n.

In (se of (s% (re'*t t%e f(*l*ty (n -e *le' m*nt*n*n t%e oo's sto( mr*n.

Sle of oo's n' mo&nt of re(oery (nnot -e set off, -&t t%e sme s%o&l' -e (re'*te' *n

t%e -n n' t%e mo&nt of /yment s%o&l' -e m'e -y -n (%e;&e ll t%e -&s*nesstrns(t*on s%o&l' -e m'e t%ro&% -n.

As /er t%e norms of t%e resere -n of In'*, -orro6er (nnot o/erte t6o (s% (re'*t

((o&nt t t*me 6*t% t6o '*fferent -ns.


56/98

-ducation 'oan

!&r/ose %*s *n' of lon *s *en to t%e -r*ll*nt st&'ents, 6%o 'o not f&rt%er t%e*r

st&'y -e(&se of /&(*ty of f*nn(e, 6*t% *e6 to -&*l'*n t%e*r (reer.

%e -n *s **n lon to (oo/erte n' to *e ss*stn(e to s&(% st&'ents

for e'&(t*on /&r/ose

L*m*t = St&'y *n In'* ? s. 1,D0,000

-= St&'y *n -ro' ? s. 2,00,000

Mr*n / to 2D,000 ? n*l

2D,001 to 1,D0,000 ? 1DF

2D,000 to 2,00,000 ? 2DF

te of *nterest 14F

e/y-le E;&tes mont%ly *nstllments of s. 32 /er t%o&sn'

Se(&r*ty E;&*t-le morte of /ro/erty, &rntee of t6o &rntors

#o(&ment Lon //l*(t*on form, E;&*t-le Morte Of !ro/erty, Letter Of

Sn(t*on, Letter Of (ont*n&*ty, (ont*n&*ty se(&r*ty letter, #! note,

Ins&rn(e !ol*(y of st&'ent, 6%*(% *s ss*ne' *n for of -n, letter of

l*en n' set off, letter of &rntee, stm/ //l*(t*on (&m reement form

S&-m*t //er In (se of ser*(e /erson /y slee/, *n (se of -&s*ness/erson lst yerly

-&s*ness re/ort, t6o /%otor/% of st&'ent

Ot%er termsInterest *s re;&*re' to -e /*' eery mont%

%e lon (n -e sn(t*one' ee/*n *n *e6 t%e lonees re/y*n (/(*ty

Com/&lsory f*rst (lss *n eery *m/ortnt e:m*nt*on

Lonee *s t%t 6%o %s /ro/erty on %*s o6n nme. St&'ent %s to 7o*n s (olonee.

%e *nstllment of lon 6*ll -e stte' fter mont%s of t%e (om/let*on of st&'y

5i=ed de%osit loan

!&r/ose o rnt lon oer'rft to n *n'**'&l or f*rm *nst $.#..

L*m*t As /er re;&*rement

Mr*n D0 F or less

!er*o' *ll '&e 'te of $.#..

te of *nterest 2 F more t%n $.#..


57/98

Se(&r*ty #&ly '*s(%re $.#..

#o(&ments #! note, '&ly '*s(%re $.#.., form of //l*(t*on

Ot%er terms L*en s%o&l' -e note' *n t%e $# ((o&nt n' on t%e -( of t%e $.#..

'&ly '*s(%re'

Bills %urchase

!&r/ose o ss*st t%e(&stomer for t%e*r s%ortterm nee' of 6or*n (/*tl

L*m*t As re;&*re' -y //l*(nt

Mr*n "enerlly 2D F

te of *nterest 18 F /er nn&m

!er*o' A(t&l rel*5t*on /er*o'

C%res -le *s *en

#o(&ments #! note, letter of &rntee, letter of (ont*n&*ty, reement letter

Bills !iscountin6

!&r/ose o ss*st t%e (&stomer to /ro*'e t%em 6or*n (/*tl *nst %*s /ost

'te' re(e*e' -*lls

L*m*t As /er re;&*re' -y //l*(nt

Mr*n "enerlly 2D F

te of *nterest 18 F /er nn&m!er*o' M:*m&m 180 'ys

#o(&ments Letter of -*lls '*s(o&nt*n &n'ert*n, #! note, letter of &rntee, letter

of (ont*n&*ty, reement letter

C%res -le *s *en

Ot%er terms Interest to -e (oere' *n 'n(e


58/98


59/98

"ollection 4f Bills 70.B."8

Amo&nt Of +*ll Lo(t*on L*ste' A-oe All Ot%er Lo(t*on

/ to s.1000 s, 10.00 Colle(t*n +ns

Comm*ss*on P s.10

!oste C%re

$rom s. 1001 to D000 s. 1D.00 Colle(t*n +ns

Comm*ss*on P s.10

!oste C%re

$rom s. D001 to 10000 s. 2D.00 Colle(t*n +ns

Comm*ss*on P s.10

!oste C%re

$rom s. 10001 to 1 L( s. 3.00 1000 Colle(t*n +nsComm*ss*on P s.1D

!oste C%re

$or s. A-oe 1 L( s, 3.00 1000 Colle(t*n +ns

Comm*ss*on P s.1D

!oste C%re

Bank 6uarantee?

1=Performance #uarantee%*s ty/e of &rntee 'oes not *nole f*nn(*l o-l*t*on

It *noles /erformn(e 6*t% rer' to (onstr&(t*on of -&*l'*n, *nstllt*on of

/lnt n' m(%*ner*es 6*t%*n *en t*me frme n' 6*t% ree' s/e(*f*(t*ons

!erformn(e relt*n to s&//ly of mter*ls s /er ree' terms n' (on'*t*ons

"&rntees my -e *en to se(&re 'n(e' /yment, *n /l(e of se(&r*ty

'e/os*t ernest money 'e/os*t ten'er money 'e/os*t et(.

!erformn(e of ny ot%er 6or (ontr(t

!erformn(e of /lnt m(%*nery &/ to ree' leel (/(*t*es

2=+inancial #uarantee

%ese &rntees re *en for meet*n 6*t% f*nn(*l o-l*t*ons


60/98

!&r/ose o ss*st t%e -&s*ness

L*m*t As re;&*re' -y //l*(nt

Mr*n Cs% mr*n


61/98

!ifferent ty%es of staff loans

Staff surety loan

!&r/ose !ersonl &se

L*m*t s. 1D,000 m:*m&m

!er*o' mont%s

te of *nterest 1 F

e/y-le E;&te' mont%ly *nstllments of s. 23 t%o&sn'

Se(&r*ty !ersonl &rntee of t6o stff mem-ers of t%e -n

#o(&ments //l*(t*on form, letter of sn(t*on, #! note, letter of &rntee

-duction loan

!&r/ose t%*s *n' of lon *s *en to t%e stff mem-ers for t%e %*%er st&'y of t%e*r

t6o (%*l'ren

L*m*t = St&'y *n In'* ? s. 3,D0,000

-= St&'y *n -ro' ? s. 4,D0,000

Mr*n 2D F

te of *nterest +n rte P 1 F

e/y-le E;&tes mont%ly *nstllments of s. 32 t%o&sn'

Se(&r*ty E;&*t-le morte of /ro/erty#o(&ments #! note, sn(t*on letter, e;&*t-le morte (%re e:tens*on letter, l*fe

*ns&rn(e /ol*(y of st&'ent, 6%*(% ss*ne' *n for of -n, term lon

reement, re(t*f*(t*on letter

Ot%er terms Interest *s re;&*re' to -e /*' eery mont%

%e *nstllment of lon 6*ll -e stte' fter mont%s of t%e (om/let*on of

st&'y

Staff vehicle loan

!&r/ose to /&r(%se ne6 ol' t6o 6%eeler for /ersonl &se

L*m*t s. 40,000

te of *nterest 0 F

e/y-le e;&te' mont%ly *nstllments s. 1D t%o&sn'


62/98

Se(&r*ty %y/ot%e(t*on of e%*(le to -e /&r(%se'

#o(&ments #! note, letter of &rntee, %y/ot%e(t*on of e%*(le, *ns&rn(e /ol*(y

Staff domestic a%%liances loan

!&r/ose $or /&r(%s*n (ons&mer '&r-les rt*(les *5. free5e, 6s%*n m(%*ne,

flo&rm*ll, .)., )C#, room (on'*t*oner, et(.

L*m*t s. D0,000

te of *nterest for *n*t*l 20,000 -n rte for rest mo&nt -en(% mr rte


63/98

!ata analysis and observation and su66estions

Presence of loan policy

In t%e AKO #ISIC COO!AI)E +ANK, -efore t6o yer t%ere 6s not /ro/er

/ol*(y for lon, -&t se/rte (*r(&lr for e(% lon. +&t t /resent AKO #ISIC CO

O!AI)E +ANK %e *ts o6n lon /ol*(y n' (r*ter* to sensor t%e lon. Co*n(*'ently,

+I lso 'e(lre' *n ner, e(% n' eery -n s%o&l' %e *ts o6n lon /ol*(y. %*s *s t%e

/o*nt, 6%*(% *s str**n &s t%e fores*%te'ness of t%e -n mnement n' lso lon

mner of t%t t*me Mr. +%tt 6%o /re/re /resent lon /ol*(y 6*t% t%e %el/ of t%e some

eff*(*ent stff mem-ers of t%e lon 'e/rtment.

$evision made on annual asis

AKO #ISIC COO!AI)E +ANK /re/re *ts o6n lon /ol*(y 7&st -efore t6o

yer. So *n one sense, 6e (n sy AKO #ISIC COO!AI)E +ANK re*se' *ts

lon /ol*(y *n lst t6o yer -&t *t *s not re*se' eery yer re&lrly. So I (n s&est t%t to

AKO #ISIC COO!AI)E +ANK, for 6l 6*t% t%e ne6 er of (re'*t mret,

-n s%o&l' try to *m/roe o6n self *n t%e f*el' of (re'*t mnement -y re*s*n t%e lon

/ol*(y t*me to t*me -y lern from /st yers e:/er*en(e.

)oan policy cover#elet*on of len'*n /o6er

Met%o' for ssessment of 6or*n (/*tl

t*n of -orro6ers

Lon /r*(*n

Dele#ation of lendin# po"er

In t%e /st t*me, AKO #ISIC COO!AI)E +ANK %' *en 'elet*on of

len'*n /o6er to *ts sele(te' -rn(% off*(es -&t t /resent +I %&r'le *nst t%*s. +y effe(t

of *t, AKO #ISIC COO!AI)E +ANK (n(el ll t%e 'elet*on /o6er of *ts

-rn(% off*(es n' -&r'en of t%e %e' off*(e *es *n 6r*tten *n ln&e of s&est*on t%t

6%t s%o&l' -e t%e 'e(*s*on An' %e' off*(e only (om/lete f&lf*ls t%e lel forml*ty to


64/98

sn(t*on t%e lon. Ho6eer *t tes more t*me for sn(t*on*n lon -&t -y t%e /r(t*(l

//ro(% -n (n sole t%*s '*ff*(&lty.

ethod of assessment of "orkin# capital

In t%e AKO #ISIC COO!AI)E +ANK, t%ere re t%ree met%o's for 6or*n

(/*tl, 6%*(% *s &sef&l to -n for (l(&lt*n t%e nee' of (s% (re'*t or s%ortterm lon of

f*rm. %*s met%o' *es 'nte to -n to f*n' o&t *f t%e 'emn' -orro6er *s f*r.

Met%o's of 6or*n (/*tl (l(&lt*on re *en -elo6?

C/*tl of -orro6er, n' -orro6*n from relt*es re m&lt*/l*e' -y t%ree

#*fferen(e -et6een (&rrent ssets n' (&rrent l*-*l*t*es m&lt*/ly -y fo&r

20 F of est*mte' sles

+orro6er (ontr*-&t*on DF of t%e t&rnoer *n 6or*n (/*tl *s ((e/te'

A-oe t%ree 6%*(%eer *s less *s or**nl 6or*n (/*tl 'emn' of t%e -orro6er s /er t%e

(l(&lt*on of AKO #ISIC COO!AI)E +ANK.

$atin# of orro"ers

AKO #ISIC COO!AI)E +ANK %s *ts o6n met%o' of (re'*t rt*n t%t *s

-enef*(*l for -ot% t%e -n n' t%e -orro6er. +e(&se t%ro&% t%*s -n s%o&l' m*nt*n

t%e*r (&stomer 6%o 'el 6*t% -n re&lrly n' t%e -orro6er *s //re(*te' for t%e*r

/erformn(e. Anot%er s*'e -orro6er ets -enef*t t%ro&% *nterest rte re'&(t*on. %*smet%o' *s *en -elo6?

"redit ratin6 of loans

AAA:

"ash credit account

In t%e ((o&nt, *nterest *s /*' re&lrly *t *s /*' t t%e en' of eery ;&rter 6*t%*n 10 'ys.

Sto( sttement *s re(e*e' re&lrly.

Oer'rft *s /*' re&lrly 6*t% *ts *nterest.

Eery 'o(&ment *s ett*n re&lrly for re*e6 n' rene6 of ((o&nt.

$erm loans

In t%e ((o&nt, *nterest n' *nstllments re /*' re&lrly.


65/98

Not*(e *s not *en on ((o&nt for ny reson.

AA:

"ash credit account

In t%e ((o&nt 6%*(% *nterest *s /*' re&lrly *t *s /*' t t%e en' of t%e eery ;&rter

m:*m&m 30 'ys.

Sto( sttement *s re(e*e' re&lrly

Oer'rft *s /*' re&lrly 6*t% *ts *nterest.

$erm loans

M:*m&m t6o *nstllments re '&e -&t t t%e en' of t%e yer *.e. on 31 stmr(%, t%ere *s no

'&e *nstllment.

Amo&nt of lon

sn(t*on

Interest (on(ess*on

2D,001 to 2,00,000 0.D F

2,00,001 to 10,00,000 0.D FA-oe 10,00,000 1F

)oan pricin#

AKO #ISIC COO!AI)E +ANK l6ys *e more *nterest on 'e/os*t t%n

ot%er -n *n 7ot '*str*(t to ttr(t t%e mret, effe(ts t%e lon /r*(*n. So lon rte of

Amo&nt of lon

sn(t*one'

Interest (on(ess*on

2D,001 to 2,00,000 1 F

2,00,001 to 10,00,000 1 F

A-oe 10,00,000 2 F


66/98

AKO #ISIC COO!AI)E +ANK *s %*%er. %o&% AKO #ISIC CO

O!AI)E +ANK et (&stomer -e(&se of *ts ser*(es, *ts s/ee'y /ro(ess, /r(t*(l

//ro(%, n' *ts rel*-*l*ty *n mret. +&t %ere one /oss*-*l*ty *s lso t%t t%e /yer of

%*%er *nterest *s somet*me reson for f&t&re loss or -&r'en on -n. So try to et 'e/os*t t

lo6er rte to re'&(e t%e lon /r*(*n. It *s lso f(t t%t *n t%*s (r*t*(l s*t&t*on of (o

o/ert*e -ns, *t *s ery %r' to et 'e/os*ts from t%e mret -&t *f -n mnement tr*es

to (rete tr&st *n /&-l*(, %ere one more -enef*t *s t%t t%e 'e/os*tor n' t%e -orro6er *s t%e

s%re%ol'er of t%e -n or sy o6ner of t%e -n. So *t *s less %r' t%n ot%er ty/es of -n

to (rete tr&st.

$eportin# format

e/ort*n formt for e:(ess &t*l*5t*on of len'*n /ro(ess -y -rn(% mner *s no6 not

nee'e', -e(&se s /er t%e ne6 &*'el*nes of t%e +I, -rn(% of (oo/ert*e -n %s no

/o6er to sn(t*on lon.

'dentification of sensitive sectors and discountin# further lendin#

#C+ *s not t%t m&(% -* -n *n (om/re of (ommer(*l -n, t%o&% *t *s nee'e' for t%e

-n to 6t(% on t%e enerl sens*t*e se(tors mens len'*n *n t%t se(tor 6%*(% *s r*sy

'nero&s for ny f*nn(*l *nst*t&t*ons. $or e:m/le len'*n *nst s%res. o f*n' o&t t%e

s/e(*l sens*t*e se(tor, 6e s%o&l' (ont*n&o&sly 6t(% on o&r -orro6ers. Somet*mes *n (seof (oo/ert*e -ns, reson of t%e*r N!A *s len'*n to /rt*(&lr ro&/ or *n'&stry. #C+

lso ee/ 6t(% n' '*s(o&r*n f&rt%er len'*n. $or e:m/le -&*l'ers 'eelo/ers (s%

(re'*t.

onitorin# of unduly lar#e e0posure to an individual or a #roup

o sto/ t%e &n'&ly lre e:/os&re to n *n'**'&l or ro&/, *n AKO #ISIC CO

O!AI)E +ANK lon stff mon*tor n' 'r6 ttent*on of %*%er &t%or*ty.


67/98


68/98

%%raisal format

!IMA IN$OMAION

Nme of t%e &n*t

#te of est-l*s%ment of -&s*ness

y/e of -&s*ness

#te of strt*n of 'el*n 6*t% -n

A''ress n' tele/%one no.?Off*(e "o'o6n $(tory

Str&(t&re of &n*t

!ro/r*etors%*/ f*rm /rtners%*/ f*rm /r*te l*m*te' /&-l*( l*m*te'

Nme of t%e /ro/r*etor /rtners '*re(tors 6*t% C#N


69/98

Mes&rement I'el !erformn(e of /rty


70/98

JSe(&r*ty (oere?


71/98

F#R/A+ #F 3A$A"C SH+

C/*tl n' l*-*l*ty !ro/erty n' Assets

Current liaility

+n lon CCO#

O&tstn'*n e:/ensesCre'*tors of

"oo's

Ot%ers

otl


72/98

ASSESSMEN $O CASH CE#I

C/*tl P -orro6*ns from relt*es J 3 RRRRRRRRRR


73/98

/ACH"RY $#A" APPRASA$ F#R/A+

Ele(tr*(*ty (onne(t*on

IN$OMAION A+O HE MACHINE O +E !CHASE#

S&//l*ers nme

M(%*nerys nme

&nt*ty

!r*(e

As /er mr*n /erm*ss*-le lon

MA"IN O$ !EMISSI+LE $INANCE


74/98

8. Cs% flo6


75/98

APPRASA$ #F //#2A3$ PR#PR+Y

Nme of o6ner n' 'es*nt*on of %*m

A''ress of /ro/erty

Ln' *n s;&re yr'

!ro/ose' (onstr&(t*on *n s;&re feet

!ln of (onstr&(t*on /sse' -y M&n*(*/l Cor/ort*on

Est*mte' (ost of /ro/erty


76/98

#3SR2A+#" A"D F"D"0S A"D S00S+#"S

$ormt for (olle(t*on of m*n*m&m *nformt*on -o&t /otent*l -orro6er

It *s m&st for ny -n 6%o 6nts to 6*n mret to (olle(t t%e *nformt*on -o&t %*s

/otent*l (&stomer. AKO #ISIC COO!AI)E +ANK -n 6%*(% eer to

*n(rese o6n mret s%re lso (olle(t t%e *nformt*on -o&t f&t&re -orro6er.

se of soft6re for (re'*t //r*sl

+n %s o6n (om/&ter 'e/rtment to 'eelo/ t%e soft6re for -n -&t t%*s no6 *n *n*t*l

ste. M7or*ty t*me (ons&me 6or *s 'one -y t%e (om/&ter t%o&% //r*sl of (re'*t *s

'one -y mn&lly.

e*s*on *n //r*sl formt '&r*n lst t6o yer

AKO #ISIC COO!AI)E +ANK /re/re' *ts /ol*(y -efore t6o yer n' 'e(*'e

/ro/er (r*ter* for sn(t*on t%e lon.

#*fferent //r*sl formt for '*fferent lon sement

%ere *s one (ommon formt for ll lons re not /oss*-le -e(&se e(% lon re;&*re

/rt*(&lr *nformt*on n' (l(&lt*on. Here *n AKO #ISIC COO!AI)E +ANK

I f*n' '*fferent //r*sl formt for '*fferent sements. %t 6e see *n -oe //r*slformt.

System of f*:t*on of m:*m&m t*me for lon sn(t*on n' sn(t*on 6*t%*n l*m*t

On //er, t%ere *s no m:*m&m l*m*t for sn(t*on t%e lon -&t enerlly s /er t%e o/*n*on

of off*(er 6*t%*n ten 'ys lon *s sn(t*one'. Somet*mes -e(&se of (relessness of t%e

-orro6er or te t*me for /ro*'*n nee'e' 'o(&ments *s reson for 'ely of sn(t*on t%e

lon.

In %o&se e:/ert*se for //r*sl of %* te(% /ro7e(ts

S/e(*l 6ors l6ys nee' e:/erts -&t *n #C+ 6e f*n' l( of t%e e:/ert for //r*sl of

%* te(% /ro7e(t n' *t *s 'nero&s /r sy r*sy for ny *nst*t&t*on. I t%*n #C+ %e to

re(r&*t e:/ert for //r*sl of %* te(% /ro7e(ts 6%o %s s/e(*l no6le'e -o&t -&s*ness


77/98

se(tor n' mstery of /ro7e(t re/ort st&'y n' no6 -e(&se of )S, e:/ert %*n

e:/er*en(e *s es*ly *l-le t lo6 (ost.

!r(t*(e of rt*n of -orro6er n' lon /r*(*n

#C+ *e rt*n to t%e -orro6er on t%e -se of t%e*r lst yer 'el*n 6*t% -n. $or t%t

#C+ %e soft6re, 6%*(% *e rt*n to t%e -orro6er. At t%e t*me of //r*sl, rt*n *s

not *en.

Com/l*n(e of terms n' (on'*t*ons !romoters (ontr*-&t*on, (ollterl se(&r*t*es,et(.

+efore /re/r*n t%e lon re/ort, *t *s ee/*n *n *e6 t%t ll ty/es of re;&*rement re

f&lf*lle'. Con'*t*on letter *s *en to (&stomer *f (&stomer f&lf*lls ll t%e (on'*t*ons lon *s

sn(t*one' -y -n.

Com/&tt*on of (&stomer /rof*t-*l*ty /er -orro6er

"enerlly I /r(t*(e, not s*nle (oo/ert*e -n *n 7ot *s (l(&lt*n t%e (&stomer

/rof*t-*l*ty /er -orro6er. If *t *s (l(&lte', -n (n no6 6%*(% (&stomers re more

-enef*(*l for t%em so -n (n *e ttent*on to m*nt*n t%em n' (n *n(rese /rof*t.

A' Q %o( sn(t*on rrely 'one

At /resent, t%e r*o&s (omm*ttee of -n (ons*'ers '%o(''*t*onl (re'*t for meet*ntem/orry re;&*rement only fter t%e -orro6er %s f&lly &t*l*5e'e:%&ste' t%e e:*st*n

l*m*t. In t%e '%o( sn(t*on, not%*n *s ten s se(&r*ty so t%*s *s r*sy -&t t%e /re*o&s

'el*n of (&stomer 6*t% t%e -n (n *e t%e /*(t&re of (&stomer.

Sn(t*on of lon

In t%e (oo/ert*e -n, sn(t*on*n /o6ers re only *n t%e %n's of -or' of '*re(tors so

somet*me lons re sn(t*one' on t%e -ses of relt*on, not on t%e -se of t%e 'esere'ness

of (&stomer. I lso (ons*'er t%t t%e (oo/ert*e -ns re -s*(lly ment for t%e -enef*t of

*ts mem-ers -&t 6*t%*n t%e l*m*ts of esere +n of In'*s &*'el*nes. Sl*%t mo'*f*(t*on

*n t%ese r&les for 6ell -e*n of mem-ers *s st*ll llo6e'.


78/98


79/98

CRD+ /#"+#R"0, F#$$#1 P A"D R21

G%en 6e len', *t *s essent*l for &s t%t to ee/ 6t(% on *t t*ll 6e re(oer *t. %*s *s (lle'

(re'*t mon*tor*n *n terms of -n*n.

CRD+ /#"+#R"0 SYS+/ " RA!#+ DS+RC C#-#PRA+2 3A"!

In t%e #C+, t%ere *s system for (re'*t mon*tor*n s/e(*lly ((o&nt, 6%*(% *s -oe

10,00,000 r&/ees *s 'es(r*-e'-elo6?

$*n' o&t t%e l*st of /otent*l N!A ((o&nts -oe 10,00,000 r&/ees

Sttements of /otent*l N!A ((o&nts re s&-m*tte' to %e' off*(e from -rn(%es

He' off*(e mon*tor*n t%*s eery t%ree mont%s n' /re/re re/ort on *t.

e/ort *s s&-m*tte' to -or' of '*re(tors.

Follo% u5 action for cre&it (onitorin' in RDC3

Consol*'t*on of 't, 6%*(% (omes from t%e -rn(%es n' eery mont%, &/'te t%e 't n'

enerte t%*s n' &se *t for follo6 &/

He' off*(e '*re(tly sen's t%e not*(e to ((o&nt %ol'ers of s&(% ((o&nts

o sto/ t%e sl*//e of t%e /otent*l N!A ((o&nts, -n orn*5e t%e (omm*ttee &n'er

&t%or*5t*on of Mr. +%tt


80/98

#3SR2A+#" F"D"0S A"D S00S+#"S

System of lon /ortfol*o re*e6 n' mon*tor*n

%ere *s system of 6eely re*e6 n' mon*tor*n of lon /ortfol*o *n t%e #C+, eery

6ee sttement *s /re/re to -e (;&*nte' 6*t% t%e /resent (re'*t 'e/os*t rt*o, *f t%*s rt*o

*s less t%n 0F for e:m/le DF, *t re/resent t%t -n (n f*nn(e &/ to D F t /resent.

!re/rt*on of MIS re/ortfor lon /ortfol*o re*e6 t -or' leel

Eery 6ee, /resent s*t&t*on of lon /ortfol*o *s /&tt*n *nst -or' of '*re(tors.

Com/l*n(e of /r&'ent*l &*'el*nes

E:/os&re Ce*l*n ? = In'**'&l 20F of t%e totl (/*tl f&n'

? -= "ro&/ D0F of t%e totl (/*tl f&n'

!r*or*ty se(tor len'*n? !r*or*ty 0F of t%e totl 'n(es

? Geer 1DF of t%e totl 'n(es

%*s *s follo6e' -y t%e #C+

te(s of 5riority sectors

A'n(es to *n'**'&ls for (t**t*es ll*e' to r*(&lt&re

Lons n' 'n(es to (ottesmll s(le *n'&str*es n' e;&*/ment system for

'eelo/ment of ne6 n' rene6-le so&r(es of enery.

A'n(es to ro' n' 6ter trns/ort o/ertors for /&r(%se of one e%*(le!r*te ret*l tr'ers 'el*n *n essent*l (ommo'*t*es


81/98

*mely rene6 n' re*e6 -y (re'*t l*m*t

Eery yer #C+ re*e6 (s% (re'*t ((o&nts n' eery t%ree yers rene6 t%t ((o&nts. At

t%e t*me of re*e6 -n only ee/ *n *e6 t%e t&rnoer of -&s*ness, ((o&nt *ns/e(t*on, f*el'

*ns/e(t*on, rene6 *ns&rn(e, rene6 s%o/ (t l*(ense, /roof of rent, *n(ome t: ret&rn or

ssessment of *n(ome t:, t&rnoer 6*t% -n. +&t /ro(ess of rene6 of ((o&nts *s totlly

*ns/e(t*on of /rty. +n (ons*'ers lst t%ree yers -&s*ness /roress of t%e /rty n' 'el

6*t% -n lso.


82/98


83/98

SCCESS SO

@99.1!ECEN ECO)E O$ A"ICLAL

AN# NON A"ICLAL LOANS

MA)ELOS ACHIE)EMEN + SHI AKO #ISIC COO!EAI)E +ANKL#., AKO, "AA SAE

S%r* 7ot #*str*(t Coo/ert*e +n Lt'.


84/98

Eery f*e yers t%ere re only t6o norml yers n' l6ys r&nn*n s%orte of

*rr*t*on n' 'r*n*n 6ter. Aere r*nfll *s -o&t 20 to 2D n' ro&n'6ter

leel *s fr -ello6 t%n t%e norml 6terleel. Amonst

ll t%ese s*' &no*'-le (*r(&mstn(e S%r* r7ot #*str*(t Coo/ert*e +n *s

rem*n No. 1 +n *s *ts eery s/n of 6or*n. O&t of 800 n ff*l*te' so(*et*es

3D so(*et*es %e /*' 100 /er(ent re(oery to t%e +n s on 31 st Mr(% 199.

G%*le t so(*ety leel *n 1 so(*et*es 100 /er(ent re(oery %e -een /*' -y t%e

mem-ers. %*s +n *s ett*n @ A Clss of &'*t s*n(e lst 24 yrs, s 6ell s 9 to

98 mrs *n *ts &'*t s*n(e lst fo&r yers . +n *s /y*n m:*m&m '**'en' of 1D

F to *ts mem-er so(*et*es. +n *s 6ell orn*5e' 6*t% ery oo' net6or to *ts 102

-rn(%es *n t%e '*str*(t. +n *s 'n(*n s%ort term, me'*&m term, lon term , (s%

(re'*ts , s(%emt*( f*nn(e lon 6*t% ll ty/es of nonr*(&lt&re f*nn(e l*e ol'

f*nn(e NSCK)!, Ho&s*n Lon et(. As on 31stA&&st 199, t%e totl mo&nt of

'nte , *nestment n' 'e/os*ts re s. 18 Crores, s. 213 Crores n' s. 32

(rores res/e(t*ely. +n %e ''e' t%e

ol'en /es *n *ts %*story of 3 yers of remr-le 6or*n, es/e(*lly (%*e*n

No.1 /os*t*on *n t%e f*el' of re(oery -y 6*nn*n t%e f*rst /r*5e from t%e "&7rt

Stte Coo/ert*e +n Lt'., s*n(e lst fo&r (onse(&t*e yers *n t%e 6%ole stte of

"&7rt. It *s not t%t esy to rem*n n' lso m*nt*n n&m-er one /os*t*on *n

re(oery *nst t%e ll -oe s*' &nfo&r-le ffe(te' f(tors. It s%o6s t%eretest efforts re m'e to 6ell 'n(e /re/l*nn n ent*re res&lt or*ente'

re(oery /ro(e'&re. At t%e ery sme t*me n e;&l ttent*on %e -een /*' on

/erform*n ssets n' mnement (ontrols. S*'e -y s*' +n lso %e (on(entrte

on %*%er /rof*ts, *n(res*n 'e/os*ts leel n' ens&r*n to se(&re %*%est -&s*ness

/er em/loyee s 6ell s *n*n %*%est ret&rns on *ts *nestment t%ro&% 6ell

mne' *n(ome or*ente' f&n's mnement /ortfol*o.

%*s +n *s -e(ome s&((essf&l

-e(&se of t%e emot*onl, *ntelle(t&l strent% n' 6*ll /o6er 6*t% 6or eff*(*en(y

of *ts D4 em/loyees *n ne(essry (om/resse' %*err(%*(l str&(t&re *s*s t%e

/yrm*' (l 'es*n /re*l*n *n In'*n +ns to'y.

PRC"+A0 #F RC#2RY A0A"S+ D/A"D


85/98


86/98

4= Strt*n from t%e

mont% of O(to-er t e(% &l /l(e t%e meet*ns rer'*n t%e re(oery %e

-een %el' -y t%e -n *n /resen(e of t%e (on(erne' +rn(% Mner , Se(retr*es n'

C%*rmn of t%e so(*et*es s 6ell s lo(l #*re(tor, mners "enerl Mner of

t%e +n. Oer ll re*e6 %e -een ten rer'*n t%e so(*ety 6*se re(oery,

/ro'&(t*on of e(% (ro/s , est*mte' (onse(&t*e re(oery /roress fter mont%, on

31stMr(% n' on 30t%&ne.

D= Off*(erIns/e(tors re s/e(*lly 'e/&te' for to loo fter t%e

re(oery /roress of t%e lre so(*et*es 6%*(% %*n %&e mo&nt of 'emn' n'

6%ere t%e Se(retr*es (omm*ttee Mem-ers re not (t*e eno&%. S&(% off*(er

re s&//ose' to *s*t t%e ss*ne' so(*et*es t lest t6*(e 6ee n' ee/*n t%e

re(or' of t%e -orro6ers %e (ont(te' n' mo&nt %e re(oere' '&r*n %*s lst n'

/resent *s*t from t*me to t*me. Oftenly t%ey re lso re/ort*n t%e ltest /os*t*on of

re(oery to t%e s/e(*l re(oery (ell of t%e He' off*(e.


87/98

Ho% account )eco(es "on Perfor(in' AssetsE

(erm loans

If *nterest or *nstllment of /r*n(*/l rem*ns /st '&e for /er*o' of ny t6o ;&rters *t

-e(omes N!A.

!st '&e mens *s n mo&nt '&e &n'er ny of t%e f(*l*ty -&t not /*' 6*t%*n 30 'ys fter

*t -e(omes '&e.

Cash credit and overdrafts

If t%e ((o&nt rem*ns o&t of or'er for /er*o' of ny t6o ;&rters, *t -e(omes N!A.

O&t of or'er mens

If t%e o&tstn'*n -ln(e rem*ns (ont*n&o&sly *n e:(ess of t%e sn(t*one' l*m*t'r6*n

/o6er

%ere *s no (re'*t (ont*n&o&sly for s*: mont%s or

Cre'*t *s not eno&% to (oer t%e *nterest 'e-*te' '&r*n t%e sme /er*o'

Bills purchase and discountin#

If t%e -*lls rem*ns oer '&e n' &n/*' for t%e /er*o' of t6o ;&rters '&r*n t%e yer *t

-e(omes N!A.

Ot%er (re'*t f(*l*ty

If ny mo&nt to -e re(e*e' rem*ns /st '&e for /er*o' of t6o ;&rters '&r*n t%e yer, *t

-e(omes N!A.


88/98


89/98

"lassification 4f #on2)erformin6 ssets

After *'ent*f*(t*on of -orro6e' ((o&nts s N!A t%e ne:t ste *s sset (lss*f*(t*on

Standard assets

Stn'r' Assets *s one, 6%*(% 'oes not '*s(lose ny /ro-lems n' 6%*(% 'oes not (rry

more t%n norml r*s tt(%e' to t%e -&s*ness. S&(% s sset s%o&l' not -e n N!A.

Su-standard assets

In (se of s&-stn'r' ssets, t%e (&rrent net 6ort% of t%e -orro6er&rntors or t%e

(&rrent mret l&e of t%e se(&r*ty (%re' *s not eno&% to ens&re re(oery of t%e '&es to

t%e -ns *n f&ll. In ot%er 6or's, s&(% ssets 6*ll %e 6ell 'ef*ne' (re'*t 6eness t%t

7eo/r'*5e t%e l*;&*'t*on of t%e 'e-t n' re (%r(ter*5e' -y t%e '*st*n(t /oss*-*l*ty t%t t%e

-ns 6*ll s&st*n some loss, *f 'ef*(*en(*es re not (orre(te'.

An sset 6%ere t%e terms of t%e lon reement rer'*n *nterest n' /r*n(*/l %e -een

reneot*te' or res(%e'&le' fter (ommen(ement of /ro'&(t*on, s%o&l' -e (lss*f*e' s&-

stn'r' n' s%o&l' rem*n *n s&(% (teory for t lest 18 mont%s of st*sf(tory

/erformn(e &n'er t%e reneot*te' or res(%e'&le' terms. If *nterest n' *nstllment of

lons %e -een /*' re&lrly s /er t%e terms of res(%e'&le'. In ot%er 6or's, t%e

(lss*f*(t*on of n sset s%o&l' not -e &/r'e' merely s res&lt of res(%e'&l*n, &nless

t%ere *s st*sf(tory (om/l*n(e of t%*s (on'*t*on.

Doutful assets

An sset *s re;&*re' to -e (lss*f*e' s 'o&-tf&l, *f *t %s rem*ne' *n t%e s&-stn'r'

(teory for 12 mont%s. As *n t%e (se of s&-stn'r' ssets, res(%e'&l*n 'oes not ent*tle

t%e -n to &/r'e t%e ;&l*ty of n 'n(e &tomt*(lly.

A lon (lss*f*e' s 'o&-tf&l t%&s ll t%e 6eness *n%erent s t%t (lss*f*e' s s&-

stn'r', 6*t% t%e ''e' (%r(ter*st*( t%t t%e 6enesses me (olle(t*on or l*;&*'t*on *n

f&ll, on t%e -s*s of (&rrently no6n f(ts, (on'*t*ons n' l&es, %*%ly ;&est*on-le n'

*m/ort-le.

)oss assets

A loss sset *s one 6%ere loss %s -een *'ent*f*e' -y t%e -n or *nternl or e:ternl &'*tors

or -y t%e (oo/ert*on 'e/rtment or -y t%e esere +n Of In'* *ns/e(t*on -&t t%e


90/98

mo&nt %s not -een 6r*tten off, 6%olly or /rtly, *n ot%er 6or's, s&(% n sset *s

(ons*'ere' &n(olle(t*-le n' of s&(% l*ttle l&e t%t *ts (ont*n&n(e s -n-le sset *s

not 6rrnte' lt%o&% t%ere my -e some sle or re(oery l&e.

PR#2S#" F#R "PA

Assets (lss*f*(t*on F Of /ro*s*on to -e m'e

Stn'r' ssets

S&- stn'r' ssets


91/98

5indin6s for #)

Im/ro/er sele(t*on of -orro6ers (t**t*es

Ge //r*sl system for (re'*t /ro/osl *n'&str*es /ro-lem/ros/e(ts not lo(e'

*nto

Mner*l (om/eten(e of -orro6er *en less (ons*'ert*on

Irre&lr*t*es *n 'ef*(*en(*es *n 'o(&mentt*on

n'te'

Not rene6e'

Assessment of -orro6er n' &rntors net 6ort% on mret o/*n*on

L( of re*e6 of -orro6e' ((o&nts

In'e;&te stff to (ont(t -orro6ers fre;&ently

L( of /ro/er follo6 &/ -y -ns

$*l&re to te /&n*t*e


92/98

ues?

Smll N!A lons


93/98


94/98

Recovery

e(oery mnement (ons*st of t%e f&n(t*ons n' (t**t*es t%e -n (rr*es o&t (;&*re

-( 6%t t%e -n %s 'n(e' 6*t% /r*n(*/l mo&nt s 6ell s *nterest on t%e sme. So

*t *s re(oery of 6%t t%e -n %s 'n(e' to lonee for (rry*n o&t t%e*r /&r/ose

o-7e(t*e of t*n lon.

PR#CSS #F RC#2RY

If t%ree *nstllments re o&tstn'*n,

Not*(e t%ro&% -rn(% off*(e

!ersonl *s*t n' meet*n

If no res/onse

Not*(e t%ro&% 'o(te

%o&% no effe(t

Cl*m t%ro&% (o&rt *f /rty re'y, of (o&rt settlement ot%er6*se

After (om/let*on of forml*t*es

+n 6*ll et t%e or'er of se(&r*ty from (o&rt to re(oer t%e*r '&e.


95/98

4bservation9findin6

M*ss*on 5ero N!A

One %*stor*(l eent t%t o((&rre' '&r*n t%e lst ;&rter of t%e yer 6s t%t ll t%e stff

mem-ers of t%e -ns too &/on t%emseles of t%e*r o6n ol*t*on t%e ts of re(oery n'

5ero N!A /ro7e(t 6s l&n(%e' &n'er t%e &*'n(e of sen*or off*(ers of %e' off*(e n' t%e

'*re(tors of t%e -n.

#&r*n t%*s yer +I %' t*%tene' t%e N!A norms for 'ef&lt from 180 'ys to 90 'ys.

#es/*te t%*s t*%tene' norms, t%e efforts /&t *n -y t%e stff mem-ers on t%e*r o6n %el/e' t%e

-n effe(t s&-stnt*l re(oer*es of N!As '&r*n t%e yer n' lso /reent sl*//e

to6r's N!As.

One *me Settlement s(%eme

One t*me settlement s(%eme *s t%e /ln of resere -n of In'* to (ler t%e -ln(e s%eet

n' /&t rel*st*( /os*t*on of -n *nst (ommon /&-l*(. +efore t%*s s(%eme t%e mo&nt of

/erform*n ssets 6s ery %*% *n -ln(e s%eet of t%e -n n' *n rel t%e -n 'oes not

ern *t. o re'&(e t%e N!A t%ro&% re(oery of t%e*r m:*m&m /oss*-le mo&nt


96/98

'0&0$$04# 45 S$/!1

%o&% I %e sele(te' t%e -*est (oo/ert*e -n for my st&'y n' no 'o&-t %ere I %e

lernt lot, -&t (om/re' to nt*onl*5e -n, *ts net6or *s smll. %e /ro(e'&re of (re'*t

//r*sl, r*o&s *nterest rtes on '*fferent s(%emes, re(oery /rormmes re s/e(*f*( to

7ot Nr* S%r* +n Lt'.

Also (re'*t mnement *s 6*'e to/*( I %e tr*e' to (oer t%e most relte' 6*t% *t.


97/98

"A3ARD 3est 5erfo(ans a%ar& recei*e& fro( Finance /i

Shree P.Chi&a()ara( , Chair(an Shree 2ithal)hai Ra&a&iya

> 0eneral /ana'er Shree C.".+ara5ara


98/98

B0B'04*R)@1

7ot #*str*(t CoO/rt*e +n +lns%eet 200D0

S%e%r K.C. +n*n %eory n' !r(t*(es. Ne6 #el%*? )*s /&-l*s%*n %o&se /t. Lt'.,

198D.

+e'* H.L. Hr'*r ).K. !r(t*(l +n*n A'n(es. Ne6 #el%*? Inst*t&te of -n*n

st&'*es, 19D.

rajkot district co-operative bank

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