A PROJECT REPORT ON

: PREPARED BY: GHUMRA ABDUL WAHID T.Y.B.B.A ROLL NO. 17 COLLEGE CHRIST COLLEGE, RAJKOT ACADEMIC YEAR: 2009-2010 SEAT NO. SUBMIT TO SAURASHTRA UNIVERSITY GUIDED BY: MISS.DARSHITA GANATRA

Declaration
I,undersigned,GHUMRA ABDUL WAHID, a student of T.Y.BBA., hereby declare that the project work presented in this project is my own work and has been carried out under the supervision of Miss DARSHITA.GANATRA, CHRIST College, Rajkot.

This project report is entirely an outcome of my own efforts and is not submitted, either in part or in whole, to any other University or Institute for any examination.

Date: -

Place: -Rajkot

(GHUMRA ABDUL WAHID,)

Preface
Today as we all know that the banking field is full of stiff competition. And now a days all the banks has began to offer one or other type of services to its account holders. Banking has been my interest of field from the beginning. So at this moment I have got this opportunity to prepare this report on the bank. Finance, personnel & Marketing, I have selected FINANCE, And my topic is ANALYSIS OF LOANS . For each and every bank, whether privatized or nationalized, the bank service charges are of much importance. The bank follows that charges as per the boundaries given by (Reserve Bank Of India)RBI.

ACKNOWLEDGEMENT
This section of my is dedicated to those peoples who have supported me throughout for making this report happen. On the top of all I would like to thank Christ College for giving me chance for visit. My special thanks to Ms. Darshita Ganatra for her guidance, motivation and for always being there. I pay my gratitude to Bank Manager Mr Sailesh Sinha and Mr Sagar Ranpara for the training and providing me all the information. Last but not the least; I thank my family members and friends who have helped me in completion of my project.

Date: -

Place: -Rajkot

(GHUMRA ABDUL WAHID,)

INDEX

1. 2.
3.

4. 5. 6.

OVERVIEW OF BANKING FRAME WORK OF THE TOPIC ANALYSIS OF LOANS AND ADVANCES FINDINGS SUGGESTIONS BIBLIOGRAPHY

CHAPTER :- 1:-OVERVIEW OF BANKING

The Origin of Word Bank

The word 'Bank' itself is derived from the French word 'Bancus' or 'Banque'. However, there are opinions that the word 'Bank' is originally derived from the German word 'Back' meaning joint, which was Italianized into 'Banco'.

Status Wise Bifurcation of Banks:-

Scheduled Banks. Non-Scheduled Banks.

Scheduled Banks: In the first schedule, Government of India notifies the Primary Banks, which are licensed and whose demand and time liability are not less than Rs. 50 crores, in 1987. The Government of India notifies the Primary banks, which are licensed and whose demand and time liability are not less than Rs. 100 crores can only qualify to be included in the second schedule since 1993.

A bank becomes scheduled when it fulfils the followings: - 'A' grade rating from RBI - Demand and Time Liability over 100 Crores - Satisfies the RBI guidelines related to CRR and SLR Merits of Being a Scheduled co-operative are described below: - The RBI would provide Re-discounting facility at nominal rate - The RBI gives remittance facility at par The demerit of being a scheduled co-operative bank is that the bank will not get subsidy @ 0.5% from the RBI. The conferment of the scheduled status of the banks has certain advantages like re-finance facility, direct industrial finance from The Reserve Bank of India, availing The Reserve Bank of India Remittance facility scheme, acceptance of deposits from local bodies, quasi-government organization, religious, and charitable institutions, guarantees and cheques issued by Banks being accepted by Government Departments. At the same time, it casts greater responsibility for the banks in the maintenance of books of accounts and submission of returns. Non-Scheduled Bank: The banks, which are not applicable as per the criteria of Scheduled Banks, are called Non-scheduled Banks. These are very small banks. Types of Banks: -

1. 2. 3. 4. 5. 6. 7.

Reserve Bank of India Nationalized Bank State Bank Group Co-operative Bank Private Bank Foreign Bank Regional Rural Banks

Reserve Bank of India

The Hilton-young commission, appointed in 1926, has recommended the necessity of a centrally empowered institution, to have an effective control over the currency and financial transactions in the country. Accordingly, the Government had then passed Reserve Bank of India Act, 1934 and established the Reserve Bank of India with effect from 1st April 1935. The principle aim behind this was to organize proper control over the currency management in the interest of country benefits and to maintain financial stability. With this, the RBI mainly looks after the following important functions: Functions of RBI:-

a. b.

To keep effective control over creation of credits and currency supply. To control the Banking Governments. transactions of Central and State

c.

To act as Central Administrative Authority of all other Banks in the Country. To organize control over Foreign Currency Transaction. To assist for improvement in financial aspects of the country.

d. e.

2. Nationalize Banks: The Banking Company Act was established in July, 1969, by the nationalization of 14 major banks of India. The cent percent ownership of these banks is with the Government of India.

3. State Bank Group: The State Bank of India was established under the State Bank of India Act, 1955, and the subsidiary banks were established under the State Bank of India (subsidiary Banks) Act, 1959. The Reserve Bank of India owns the State Bank of India, to a large extent, and the rest of the part is of private ownership in the share capital of State Bank of India. The State Bank of India owns the subsidiary Bank.

4. Private Banks: These banks are registered under The Companys Act, 1956. Basic difference between cooperative banks and private banks is its aim. Co-operative banks work for its member and private banks work for earn profit. The newly formed Private Banks have lead the market of Indian banking business in a very short period, because of the variety of services provided, the approach of handling the customers requirements, long working hours and the speed of executing the services. They are also registered under the Companys Act, 1956.

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5. Foreign Banks: Foreign Bank means multi-countries bank. In case of India, Foreign Banks are such Banks that open its branch office in India and their head office remains outside India. 6. Regional Rural Banks (RRB): -

Regional Rural Banks have been included in the Indian Banking Sector since October, 1975. The Government of India in terms of the provision of the Regional Rural Bank Act, 1976, has established these banks. The distinctive feature of the Regional Rural Bank is that though it is a separate body, it is corporate with the Commercial Bank, which has sponsored the proposal to establish it. The Central Government, while establishing a Regional Rural Bank, at the request of a Commercial Bank, shall specify the local limits within which it shall operate. The Regional Rural Bank may establish its branches or agencies at any place within the notified area. For example: The State Bank of Saurashtra sponsors Regional Rural Banks in Saurashtra.

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Early History of Banking

As early as 2000 B.C., the Babylonians had developed a banking system. There are evidences by the archeological department to show that the temples of Babylon were used as banks. After a period of time, there was a spread of irreligion, which soon destroyed the public sense of security in depositing money and valuable in temples. The priests were longer acting as financial agents. The Romans did minute regulations, as to conduct private banking and to create confidence in it. Loan banks had also become common in Rome. From these Banks the poor citizens received loans without paying interest, against security of land for 3 or 4 years. During the early periods, although private individuals mostly did the banking business, many countries established public banks either for the purpose of facilitating commerce or to serve the government. However, upon the revival of civilization, the growing necessity forced the issue in the middle of the 12th century and banks were established at Venice and Genoa. The Bank of Venice established in 1157 is supposed to be the most ancient bank. Originally, it was not a bank in the modern sense, but simply an office for the transfer of the public debt. Again the origin of modern banking may be traced to the money dealers in Florence, who received money on deposit, and were lenders of money in the 14th century and thereafter in 1349, the business of banking being carried on by drapers of Barcelona.

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In India, as early as the Vedic Period, banking, in its most crude form, existed. The books of Manu contain references regarding deposits, pledges, policy of loans, and rate of interest. However, banking in those days largely meant money lending and people did not know the complicated mechanism of modern banking.

This is true, not only in the case of India, but also for other countries. Although, the business of banking is as old as authentic history, banking institutions have, since then changed substantially, in character and content. They have developed, from a few simple operations involving the satisfaction of a few individual wants, to the complicated mechanism of modern banking, involving the satisfaction of the common masses as well as the corporate world and thus providing the very life blood of commerce.

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PROBLEMS FACED BY BANKING INDUSTRY

1. Credit problem : This problem arises due to default in payment or delayed payments. 2. market problems : This problem arises due to adverse movement in interest rates and exchange rates. Market problem is also called price problem or interest problem. 3. technological problems : The technological changes especially in the field of computer and communication give rise to technological problems. The banks should properly assess. Technological problem and adopt suitable strategies and measures to manage this problem. 4. Liquidity problem : Banks face the problem that a tradable financial instrument or an asset may not be realized in cash. This problem is termed as liquidity problem. As liquidity problem emanates from maturity mismatching of asstes and liabilities the gap of mismatch may be narrowed by raising fund from the money market.

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OWERVIEW OF BANK
Dena Bank was founded on 26th May, 1938 by the family of Devkaran Nanjee under the name Devkaran Nanjee Banking Company Ltd. It became a Public Ltd. Company in December 1939 and later the name was changed to Dena Bank Ltd. In July 1969 Dena Bank Ltd. along with 13 other major banks was nationalized and is now a Public Sector Bank constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. Under the provisions of the Banking Regulations Act 1949, in addition to the business of banking, the Bank can undertake other business as specified in Section 6 of the Banking Regulations Act, 1949.

The logo of Dena Bank represents Lakshmi, the Goddess of wealth, according to Hindu mythology. It was the desire of the founding fathers of the Bank that the Bank should be a symbol of prosperity for all its clients, and the logo represents this promise. The contemporary 'D' in the logo reflects the dynamism, dedication and the drive towards customer satisfaction.

15

COMPANY PROFILE

Name : Address : -

Dena bank(KODINAR Branch) Azad Chowk, Tal. Kodinar, Dist. Junagadh, Gujarat, 02795-221410 kodina@denabank.co.in

Year of Establishment: Managing Director & Chairman : Branch Manager : (KOdinar) Branches :Website:No. of employees:-

1980 Shri D.L.Rawal Shri Sailesh Sinha

10000 above www.denabank,com 10 employees

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Board of Directors

Shri D.L.Rawal Chairman & Mg. Director

Shri Bhaskar Sen Executive Director

Dr Tarsem Chand Govt Nominee Director

Shri Chandra Kishore RBI Nominee Director

Shri M.G. Shinde Workmen Employee Director

Dr.Kamlesh Kumar Goel Director

Dr. Pritam Singh Shareholder Director

Dr. Sunil Gupta Shareholder Director

Shri Rohit Khanna Shareholder Director

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MILESTONES OF THE BANK

One among six Public Sector Banks selected by the World Bank for sanctioning a loan of Rs.72.3 crores for augmentation of Tier-II Capital under Financial Sector Developmental project in the year 1995. One among the few Banks to receive the World Bank loan for technological upgradation and training. Launched a Bond Issue of Rs.92.13 crores in November 1996. Maiden Public Issue of Rs.180 Crores in November 1996. Introduced Tele banking facility of selected metropolitan centers. Dena Bank has been the first bank to introduce: Minor Savings Scheme. Credit card in rural India known as "DENA KRISHI SAKH PATRA" (DKSP). Drive-in ATM counter of Juhu, Mumbai. Smart card at selected branches in Mumbai. Customer rating system for rating the Bank Services.

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CHAPTER:-2:- FRAME WORK OF THE TOPIC

FRAMEWORK OF THE TOPIC Loans and Advances Profit is the pivot on which the entire business activity rotates. Banking is essentially a business dealing with money and credit. Like every other business activity, banks are profit oriented. A Bank invests in funds in many ways to earn income. The bulk of it income is derived from loans and advances. Banks make loans and advances to traders, businessman and industrialists against the security of some assets or on the basis of the personal security of the borrower. In either case, the banks run the risk of default in repayment. Therefore, banks have to follow a cautions policy and sound tending principles in the matter of lending. Banks in India have to consider the national interest along with their own interest while determining the lending policy.

Advances Banks offer different kinds of borrowing facilities to their customers. The credit facilities may be broadly classified as follows:1. Loans In case of loan, the banker advances a lump sum for a certain period at an agreed rate of interest. The loan may be repaid in installments or at the expiry of a certain period. The loan may be made with or without secureity.

2.

Cash Credit
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Cash Credit is an active and running account to which deposits and withdrawals may be affected frequently. Interest is charged only for the amount withdrawn is not for the whole amount charged. Cash Credit arrangements are usually made against pledge and hypothecation of goods. 3. Overdraft Overdraft is an arrangement between a banker and his customer by which the later is allowed to withdraw over and above his credit balance in the current account upto an agreed limit. This is only a temporary accommodation usually granted against securities.

4.

Bills Discounted and Purchased Banks grant advances to their customers by discounting bill of exchange . The amount, after deducting the interest from the amount of the instruments, is credited in the account of the customer.

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CHAPTER:-3:-ANALYSIS OF LOANS
ANALYSIS OF DATA & INTERPRETATION Banking is an essentially a business dealing with money and credit. Like other business activity, banks are profit oriented Loans and Advances are the two main stream of the banking system. Bank accepts money in the form of deposits and pays interest at certain rate. On the other hand, bank lends the money in the form of loans & advances and receives interest at certain rate higher than the rate of deposits. This difference in rate of interest is the earning of bank.

LOANS ANALYSIS

TYPES OF LOANS

1.Housing loan

Dena Bank Loans are attractive financing options from Dena Bank, one of India's leading nationalized banks. Loan Schemes from Dena Bank are Dena Niwas, Dena Mortgage, Dena Vidya Laxmi and Dena Auto Finance. Dena Bank Home Loans

The Dena Niwas Finance Scheme is a Dena Bank Home Loan scheme. Dena Bank Home Loan under the Dena Niwas scheme can be taken for the following purposes.

21

Plot purchase Purchase of a house under construction House construction Purchase of a completed house

Home loans under Dena Niwas scheme are also available for carrying out construction activities meant for building an extension of an existent house. Dena Bank loans are available for house up-gradation and repair activities also. The Dena Niwas scheme also offers some other amenities to customers. However, there are a host of conditions related to the granting of home loans Initial Fixed Interest Rate Upto Rs.30 lakhs 8.00% for 1st & 2nd year and 9.50% for 3rd to 5th year. Above Rs.30.00 lakhs 8.50% for 1st & 2nd year and 9.50% for 3rd to 5th year. ** Floating Rate Upto Rs.30 lakhs BPLR - 2.25% from 6th year onwards (i.e. 10.25% at present). Above Rs.30.00 lakhs BPLR - 2.00% from 6th year onwards (i.e. 10.50% at present). Fixed Rate Upto Rs.30.00 lakhs : BPLR - 1.25% from 6th year onwards (i.e. 11.25% at present). Above Rs.30.00 lakhs BPLR - 1.00% from 6th year onwards (i.e. 11.50% at present).

** Option :At the end of the 5th year the interest rate will be reset as per optionto be exercised by the borrowers to either go for floating or fixed rate. The above rates of interest will be applicable to loans other than those under special stimulus package of Government of India. For takeover of housing loans from other banks, our regular interest rates will be applicable.

The doorway to your Dream Home

22

A Loan for different needs You can avail of Dena Niwas Home Loan to purchase a plot, construct a house, buy a ready built house or buy one under construction. The loan even helps you build an extension to your existing house or purchase a house that is up to 50 years old provided the remaining life of the house is more than 25 years. Besides you can take this loan for repairs and upgradation, which includes the cost of fixtures, POP works, retiling, fittings etc. It even gives you the option to shift an existing home loan with any other Bank or Financial Institution. You are eligible if: You are a major individual, resident or non-resident, having a regular source of income. Your age on the maturity of the loan is less than retirement age if you are a salaried employee & below 65 years, if you have a business. The total deductions do not exceed 60% of your gross income, including the loan installment of the proposed loan. Spouses/Co-applicants income can be clubbed for enhanced eligibility. Loan Amount Up to Rs.100 lakhs for the purchase of a house. Up to Rs.5 lakhs for renovation/upgradation. Margin 20% Rate of Interest Please Check out the Interest Rates Section to find latest Interest Rates applicable.

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INTEREST CHARGED ON DAILY REDUCING BALANCE NO PREPAYMENT CHARGES FREE DEBIT CARD WITH INSURANCE COVER OF RS. 1 LAC IN CASE OF ACCIDENTAL DEATH LOAN LIMIT OF RS. 100 LACS. PURCHASE OF HOUSE UPTO 25 YEARS OLD ALLOWED FLOATING RATE LINKED TO BPLR & NOT ANY INDEX/ REFERENCE RATE Repayment Upto 20 years-for the purchase of a new flat/house/construction/extension. Upto 10 years- for repairs, renovation and upgradation. Security

Simple equitable mortgage of the house/flat/apartment on which the loan is availed. Process Fees 0.50 % of the sanctioned loan amount

Table showing the total amt of loans given to the auto finance of last 5 years

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Year 2004 2005 2006 2007 2008

Amt(000ommited) 60,000 72,345 83,099 84,822 79,388

A m t ( 0 0 0 o m m it e d )

10 0 ,0 0 0 8 0 ,0 0 0 6 0 ,0 0 0 4 0 ,0 0 0 2 0 ,0 0 0 0 2004 2005 2006 2007 2008 Ye a r A m t ( 0 0 0 o m m it e d

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Table showing ratios: Year 2004 2005 2006 2007 2008 Ratio(%) 100 121 138 291 224

Ratio(%)

350 300 250 200 Ratio(%) 150 100 50 0 2004 2005 2006 Ye a r 2007 2008

26

 Table showing no of loans lended in last 5 years

No.Of.Loans 40 55 60 35 57

Year 2004 2005 2006 2007 2008

N o .O f .L o a n s

80 60 40 20 0 2004 2005 2006 Year 2007 2008 N o .O f .L o a n s

27

 Table showing ratios:Year 2004 2005 2006 2007 2008 Ratio(%) 100 138 150 88 143

R a tio (% )

200 150 100 50 0 2004 2005 2006 2007 2008 R a ti o (% )

y e a r

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2.Auto loans Dena Bank Car Loans Dena Bank Car Loans fall under the Dena Auto Finance Scheme. Some eligibility criterion for a Dena Bank Auto Loan is briefly stated below. a. The applicant needs to possess a minimum yearly gross income of Rs.75,000 for accessing a two- wheeler loan. The comparable yearly income figure for a car loan is Rs. 1.50 lakhs. b. The maximum loan amount sanctioned for a brand new two-wheeler is Rs. 50,000. The comparable figure for a new car is Rs. 8 lakhs There exist a host of other conditions attached with this scheme. Take the smooth road to own your Dream Machine

Get on the right track with Dena Auto Loan and drive home your home machine. You are eligible if:

You have a gross income of more than Rs.75,000/- p.a. for loan for purchase of motor cycle / scooter and more than Rs.1.50 lacs p.a. for loan for purchase of cars. You are a partnership firm / company for purchase of car. The firm /

29

company should be profit making for the last 2 years. The net profit as per Audited Balance Sheet of last year should be more than Rs.3.00 lacs. Loan Amount Upto Rs. 50,000/- for purchase of a new two wheeler. Upto Rs. 8 lakhs for purchase of a new car. Margin 20% Rate of Interest Please Check out the Interest Rates Section to find latest Interest Rates applicable. INTEREST CHARGED ON DAILY REDUCING BALANCE NO PREPAYMENT CHARGES Security Hypothecation of the vehicle purchased. Mode of disbursement Loan disbursed directly to the authorized dealer. Process Fees Two wheeler- Rs. 250/Four wheelers- Rs. 500/ Repayment Upto 60 EMIs (For new vehicles) & upto 36 EMIs (For old Vehicles).

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 Table showing the total amt of loans given to the auto finance of last 5 years Year 2004 2005 2006 2007 2008 Amt(000ommited) 23,254 20,274 46,254 34,270 27,504

A mt(000ommi ted)

50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2004 2005 2006 2007 2008 A mt(000ommi ted)

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 Table showing ratios:Year 2004 2005 2006 2007 2008 Ratio(%) 100 89 199 147 118

R a ti o (% )

250 200 150 100 50 0 2004 2005 2006 2007 2008 R a tio (% )

32

 Table showing no of loans lended in last 5 years Year 2004 2005 2006 2007 2008 No.Of.Loans 150 120 114 69 70

N o . O f . L oa ns

160 140 120 100 80 60 40 20 0 2004 2005 2006 2007 2008 N o. O f . L o ans

33

 Table showing ratios:Year 2004 2005 2006 2007 2008 Ratio(%) 100 80 76 46 47

R a t io ( %)

12 0 10 0 80 60 40 20 0 2004 2005 2006 2007 2008 R a t io ( %)

34

The graph of . Dena auto Fianance loan shows the fluctuating trend. In X-Axis the years are mentioned & in Y-Axis Total amount of loans and the ratios are plotted. In 03No. of loans increased to 23254 from whereas it increased by 27504 in 07 Looking the graph of ratios, it indicates that the % increase in 07=118% more than double the amount, while it increased by100%in 03. Table of No. loans suggest the fluctuations graph shows the downward trend at increasing rate i.e. in 03the No. of loans given increased by 150% compared to base year, whereas it decreased by 47% compared to base year.

Now a days bank credit is proving the widely used source of finance by companies and it fluctuates because of varying cash credit limits

3.Dena Consumer Durable Loan:35

Now , it's so easy to improve your lifestyles. And turn your home into a smart, modern one with all the conveniences you can imagine. Be it a Laptop, Washing Machine, Microwave, Fridge, TV, DVD Player, Music System, AC, Modern Furniture, Cooking Range, PC, Fitness Equipment or even a Mobile Handset. Just take a Dena Consumer Durable Loan and move up in life. You are eligible if: You have sufficient repayment capacity. Also, your spouse's income can be clubbed to enhance your eligibility. Loan Amount Upto Rs. 1 lakh Margin 20% Rate of Interest Please Check out the Interest Rates Section to find latest Interest Rates applicable. INTEREST CHARGED ON DAILY REDUCING BALANCE NO PREPAYMENT CHARGES Repayment Upto 36 EMIs. Mode of Disbursement Payment will be released to the dealer against proforma invoice. Security

Hypothecation of consumer durables purchased.

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Process Fees Upto Rs. 25,000/- - Rs.250/Above Rs. 25,000/- - Rs.500/-

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 Table showing the total amt of loans given last 5 years:Year 2004 2005 2006 2007 2008 Amt(000ommited) 6,756 4,057 2,192 3,192 5,234

A m t ( 0 0 0 o m m i t e d )

8 ,0 0 0 7 ,0 0 0 6 ,0 0 0 5 ,0 0 0 4 ,0 0 0 3 ,0 0 0 2 ,0 0 0 1,0 0 0 0 2004 2005 2006 2007 2008 A m t ( 0 0 0 o m m i t e d )

38

 Table showing ratios:Year 2004 2005 2006 2007 2008 Ratio(%) 100 60 32 46 77

R a t io ( %)

12 0 10 0 80 60 40 20 0 2004 2005 2006 2007 2008 R a t i o ( %)

The graph of Dena Consumer Durable Loan. shows the fluctuating trend.
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 In X-Axis the years are mentioned & in Y-Axis Total amount of loans and the ratios are plotted. In 03No. of loans increased to 6756 from whereas it decreased by 5234in 07 Looking the graph of ratios, it indicates that the % decrease in 07=56% more than double the amount, while it increased by100%in 03. Now a days bank credit is proving the widely used source of finance by companies and it fluctuates because of varying cash credit limits 4.Personal loans 4. Dena Suv idha (Personal Loan) :Dena Suvidha is the ideal way to fulfill personal needs of your family. Be it tofinance a marriage or family function. To travel or celebrates a festival. For medical treatment or educational purposes. Or simply a vacation. Even anunforeseen event. Dena Suvidha (Personal) Loan is always there for all your needs.

Dena Bank personal loans Dena Mortgage Loan Scheme is extended to people who own un-encumbered commercial, non-agricultural or residential property at disposal. Dena Mortgage Loans can be used for financing marriages, medical treatment, higher education or foreign trip. A maximum loan amount of Rs.100 lakhs is available under this system. There are some conditions governing this Dena Bank loan.

Dena Mortgage Loan Scheme

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Make your idle property work for you

If you have free hold, un-encumbered, non-agricultural property, residential or commercial- you can fulfill all your needs with Dena Mortgage Loan. Be it to finance a marriage, higher education, a foreign trip or medical treatment. You are eligible if: You are 21 years of age. You are a salaried individual, professional, self-employed, agriculturist. You are an income tax assessee for at least 2 years. Your net monthly income is at least Rs. 12,000/-. Income of spouse (co-applicant) can be clubbed for enhanced eligibility. Loan Amount Minimum- Rs. 2 lakhs Upto- Rs. 100 lakhs

Margin

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50% Rate of Interest Please Check out the Interest Rates Section to find latest Interest Rates applicable INTEREST CHARGED ON DAILY REDUCING BALANCE Security Equitable mortgage of the property. Process Fees 1% of the sanctioned limit Repayment Upto 84 EMIs

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Table showing amt of personal loan:Year 2004 2005 2006 2007 2008 Amt(000ommited) 3,256 2,356 2,825 2,829 1,831

A mt(000 ommi ted)

3, 500 3, 000 2, 500 2, 000 A mt(000 ommi ted) 1, 500 1, 000 500 0 2004 2005 2006 2007 2008

43

Table showing ratios:Year 2004 2005 2006 2007 2008 Ratio(%) 100 72 87 87 56

R a ti o (% )

120 100 80 60 40 20 0 2004 2005 2006 2007 2008 R a ti o (% )

44

 Table showing no of loans given to staff:Year 2004 2005 2006 2007 2008 No.Of.Loans 150 120 114 69 70

N o . O f .L o a n s

16 0 14 0 12 0 10 0 80 60 40 20 0 2004 2005 2006 2007 2008 N o .O f .L o a n s

45

Year 2004 2005 2006 2007 2008

Ratio(%) 100 108 177 194 146

Table showing ratios:-

46

250 200 15 0 10 0 50 0 2004 2005 2006 2007 2008

The graph of Dena Suv idha (Personal Loan). shows the fluctuating trend. The graph of . Dena Mortgage Loan shows the fluctuating trend. In X-Axis the years are mentioned & in Y-Axis Total amount of loans and the ratios are plotted. In 03No. of loans increased to 12005 from whereas it increased by 26799 in 07 Looking the graph of ratios, it indicates that the % increase in 07=223% more than double the amount, while it increased by100%in 03. Table of No. loans suggest the fluctuations graph shows the downward trend at increasing rate i.e. in 03the No. of loans given increased by 120 % compared to base year, whereas it decreased by 60% compared to base year.

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 Now a days bank credit is proving the widely used source of finance by companies and it fluctuates because of varying cash credit limits

5.Education loan Dena Bank

Education

Loans

Dena Bank Education Loans are available for the financing of the educational needs of students for pursuing higher studies in India or abroad. Dena Vidya Laxmi is a premier Educational Loan Scheme from the bank. The eligibility criterion for securing Dena Vidya Laxmi Educational Loan is described in brief below. a. Applicants need to be Indian nationals. The applicant also need to have secured an admission to any technical or professional program in a foreign or Indian university

48

b. Applicants need to approach the bank for the loan with proof of admission and the qualifying examination mark-sheet Dena Bank Education Loans are available for the following study courses in India.

Graduation courses Professional courses Post-Graduation courses PhD and Masters

The comparable disciplines for study abroad are the following. a. Graduation for technical or professional courses from reputed universities b. Post Graduation like MS, MCA or MBA

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The Topper for your childrens Higher Education

Ensure a bright future for your children. Provide them with the best of higher education in India or abroad. Avail Dena Vidya Laxmi Educational Loan. You are eligible if: You are an Indian national and have secured admission to a professional or technical course in an Indian or Foreign university. Simply walk in with the marksheet of the qualifying exam. and proof of admission. Course Eligibility Study in India: Graduation courses, Professional courses. Study Abroad: Graduation for professional/ technical courses offered by reputed universities; Post Graduation (MCA, MBA, MS) Post-Graduation courses, Masters & PhD,

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Loan Amount Upto Rs.10 lakhs for studies in India. Upto- Rs. 20 lakhs for studies abroad. Loan takes care of :

Fee payable to colleges/ schools/ hostels Examination/ Library/ Laboratory fees. Purchase of books, equipment, instruments and uniforms. Passage fare for travel abroad. Purchase of computers needed to complete the course. Any other expense to complete the course like study tours, project work, thesis etc.

Margin Upto Rs. 4 lakhs- NIL for study in India and abroad. Above Rs. 4 lakhs- 5% for study in India and 15% for study abroad. Rate of Interest Please Check out the Interest Rates Section to find latest Interest Rates applicable 1% INTEREST CONCESSION IF INTEREST SERVICED DURING THE STUDY PERIOD. SIMPLE INTEREST CHARGED DURING MORATORIUM PERIOD. Process Fees Rs.1000/- for studies abroad. Repayment Moratorium- Course period + 1 year or 6 months after getting a job, whichever is earlier.

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Table showing the total amt of housing loan given in kast 5 years:Year 2004 2005 2006 2007 2008 Amt(000ommited) 12,005 13,845 18032 32,528 26,799

A m t ( 0 0 0 o m m it e d )

3 5 ,0 0 0 3 0 ,0 0 0 2 5 ,0 0 0 2 0 ,0 0 0 15 ,0 0 0 10 ,0 0 0 5 ,0 0 0 0 2004 2005 2006 2007 2008 A m t ( 0 0 0 o m m i t e d )

52

 Table showing ratios:Year 2004 2005 2006 2007 2008 Ratio(%) 100 115 150 271 223

R a t io ( %)

300 250 200 15 0 10 0 50 0 2004 2005 2006 2007 2008 R a t io ( %)

53

 Table showing no of loans lended in last 5 years:Year 2004 2005 2006 2007 2008 No.Of.Loans 120 115 150 75 60

N o.O f .L oans

160 140 120 100 80 60 40 20 0 2004 2005 2006 2007 2008 N o.O f .L oans

54

 Table showing ratios:Year 2004 2005 2006 2007 2008 Ratio(%) 100 115 150 271 223

R ati o(%)

300 250 200 150 100 50 0 2004 2005 2006 2007 2008 R ati o(%)

55

 Table showing no of loans given to public:Year 2004 2005 2006 2007 2008 No.Of.Loans 130 60 90 129 165

N o .O f .L o a n s

18 0 16 0 14 0 12 0 10 0 80 60 40 20 0 2004 2005 2006 2007 2008 N o .O f .L o a n s

56

 Table showing ratios:Year 2004 2005 2006 2007 2008 Ratio(%) 100 46 69 99 127

R a t io ( %)

14 0 12 0 10 0 80 60 40 20 0 2004 2005 2 00 6 2007 2008 c R a t io ( %)

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 In X-Axis the years are mentioned & in Y-Axis Total amount of loans and the ratios are plotted. In 03No. of loans increased to 3256 from whereas it decreased by 1831in 07 Looking the graph of ratios, it indicates that the % decrease in 07=56% more than double the amount, while it increased by100%in 03. Now a days bank credit is proving the widely used source of finance by companies and it fluctuates because of varying cash credit limits

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FINDINGS Any study carried on for research or investigation purpose is based on certain assumption. In the beginning I have taken hypothesis for my study: 1. Trend in loans and advances has increased during last 5 years. After analysis, my study this hypothesis proves true. The total amt of loans and advances has increased during the last 5 years. which shows increasing trend. Through detail study it can be known that various individual loans shows punctuating trend but the overall loans and advances as a whole shows increasing trend.
2. consumer durable loans and advances shows declining trend.

This hypothesis proves to be false. Corporate shows trend. Factors working behind the trend for c & I loans are market conditions. Competition, Rt. Of landing loans, cash credit unit, etc..

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SUGGESTION Suggestions regarding loans/ advances:The trend of loans/ advances shows increasing trend, which is good sign for bank and is a satisfactory result. Bank as such need not to take any step to improve the performance as it is going an well just it needs to keep a watchful eye and check the performance.

Though the trend of loans / advances shows increasing trend but the trend of each individual loans like C&D loans, etc shows fluctuating trend so, bank has to check the performance of each loan individually, bank showed try to find the limitations and try to overcome it Bank should change the working pattern, lending pattern, navies the rate of interest, case the conditions of lending etc.

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BIBLIOGRAPHY

Web Site:: www.denabank.com

BOOKS : FINANCE MANAGEMENT KHAN & JAIN

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