A PROJECT REPORT

ON

Under the guidance Of
Prof. Pragna Kaul
Submitted by
Nikita Arora
(5310900399)
in partial fulfillment of the requirement
for the award of the degree
Of
MBA
IN
Banking & Finance
Aril !"##
1


ACKNO$%E&'E(ENT
I am very much thanful to !rof" #ogen $ripathi (!%&#'($ )*I+') for giving
u, opportunity and her guidance help u, through out preparing thi, report" She
ha, al,o provided u, a valuable ,ugge,tion, and e-cellence guidance about thi,
pro.ect which proved very helpful to u, to utili/e my theoretical nowledge in
practical field"
0t la,t I am al,o thanful to my friend,1 to all nown and unnown individual,
who have given me their con,tructive advi,e1 educative ,ugge,tion1
encouragement1 co2operation and motivation to prepare thi, report"

Nikita Arora
(5310900399)

3
BONAF)&E CERT)F)CATE
(ertified that thi, pro.ect report titled 4!ro.ect report on I5) 6y,ya 7an 8td"*
i, the bonafide wor of 4Nikita Arora* who carried out the pro.ect wor
under my ,upervi,ion"
+)'NATURE +)'NATURE
Prof. Pragna Kaul Prof. Jogen Triathi
0cademic 9ead !ro.ect )uide
IS7:1 IS7:1
5r" Swa,ti (ro,, %oad,1 5r" Swa,ti (ro,, %d1
5avrangpura1 5avrangpura1
0hmedabad" 0hmedabad"

3
E,ecuti-e +u..ar/
!ro.ect ha, been a great learning e-perience for me; at the ,ame time
it gave me enough ,cope to implement my analytical ability" $hi,
pro.ect a, a whole can be divided into different part,<

'ach part give, an in,ight about the 7aning Sector and it,
variou, a,pect," It i, purely ba,ed on whatever I learned at I5) 6y,ya
7an 8td" &ne can have a brief nowledge about 7aning Indu,try
and all it, ba,ic, through the pro.ect" &ther than that the real ,erving,
come when one move, ahead"
0ll the topic, have been covered in a very ,y,tematic way" $he
language ha, been ept ,imple ,o that even a layman could
under,tand" 0ll the data=, have been well analy/ed well"
9ope the re,earch finding, and conclu,ion, will be of u,e"
>
)N&E0
+R. No. +u12ect Page No.
Chater 3 # O-er-ie4 5
Chater 3 ! Banking 5
Chater 3 6 )t78 9i8tor/ 5
Chater 3 : (a2or Pla/er8 ;
Chater 3 < Banking )n )ndia ;
Chater 3 5 )N' =/8/a Bank %td. #<
Chater 3 ; Profile #;
Chater 3 > Bu8ine88 +trateg/ !<
Chater 3 ? Technolog/ U8ed in
)N' =/8/a Bank %td.
!5
Chater 3 #" Achie-e.ent8 &
(ile8tone8
!;
Chater 3 ## (/ %earning !>
Chater 3 #! +$OT Anal/8i8 :5
Bi1liogra/h/
5
1. Overview
I5) i, a diver,ified financial ,ervice, )roup that provide, a range of baning
and financial ,ervice, to cu,tomer,1 including
retail baning1
pro.ect and corporate finance1
woring capital finance1
in,urance1
venture capital and private equity1
inve,tment baning1
broing1
and trea,ury product, and ,ervice,"
$he company operate, in1 India1 the *?1 (anada1 %u,,ia and in @0 other
countrie," It i, headquartered in 0m,terdam1 5etherland, and employ, about
11101000 people worldwide"
2. BANKING
0 ban i, a financial in,titution who,e primary activity i, to act a, a payment
agent for cu,tomer, and to borrow and lend money" 7an, are important player,
in financial maret, and offer financial ,ervice, ,uch a, inve,tment fund," In
,ome countrie, ,uch a, )'%:05A1 ban, are the primary owner, of indu,trial
corporation," Bhile in other countrie, ,uch a, the *5I$'+ S$0$'S ban, are
prohibited from owning non2financial companie,"
3. HISTORY OF BANKING
$he fir,t ban, $he 7anre probably the religiou, temple, of the ancient world"
It wa, probably e,tabli,hed ,ometime during the third millennium 7"(" 7an,
probably predated the invention of money" $here are e-tant record, of loan,
@
from the 1Cth century 7( in 7abylon that $he 7anre made by temple prie,t, or
mon, to merchant,"
4. MAJOR PLAYERS IN INDIA
0 State 7an of India
o 9+D( 7an
o I(I(I 7an
o 9S7( 7an
o I+7I 7an
o (iti 7an
o 0-i, 7an
o !un.ab national 7an
o I5) 6y,ya 7an
o *nion 7an of India
5. INDIAN BANKING INDUSTRY
BANK)N' )N )N&)A
7aning in India originated in the la,t decade, of the 1Cth century" $he fir,t
ban, $he 7anre $9' )'5'%08 705? &D I5+I01 which ,tarted in 1EC@1
and 705? &D 9I5+*S$051 both of which are now defunct" $he olde,t ban
in e-i,tence in India i, the S$0$' 705? &D I5+I01 which originated in the
705? &D (08(*$$0 in #une 1C0@" $he fir,t fully Indian owned ban wa,
the 08809070+ 705?1 e,tabli,hed in 1C@5"
*ntil the early 1990,1 the Indian financial ,y,tem wa, ,trictly controlled"
Intere,t rate, were admini,tered1 formal and informal parameter, governed a,,et
allocation1 and ,trict control, limited entry into and e-pan,ion within the
financial ,ector" $he )overnment=, economic reform program1 which began in
19911 encompa,,ed the financial ,ector" $he fir,t pha,e of the reform proce,,
E
began with the implementation of the recommendation, of the (ommittee on
the Dinancial Sy,tem1 the 5ara,imham (ommittee I" $he ,econd pha,e of the
reform proce,, began in 1999"
Re8er-e Bank of )ndia
%7I1 e,tabli,hed in 19351 i, the central regulatory and ,upervi,ory authority for
the Indian financial ,y,tem" %7I manage, India=, money ,upply and foreign
e-change and al,o ,erve, a, a ban for the )overnment and for India=,
commercial ban,"
%7I i,,ue, guideline, on variou, area, including e-po,ure ,tandard,1 income
recognition1 a,,et cla,,ification1 provi,ioning for non2performing and
re,tructured a,,et,1 inve,tment valuation and capital adequacy ,tandard, for
commercial ban,1 long2term lending in,titution, and non2ban finance
companie," %7I require, the,e in,titution, to furni,h information relating to
their bu,ine,,e, to %7I on a regular ba,i,"
Co..ercial Bank8
(ommercial ban, in India have traditionally focu,ed only on meeting the
,hort2term financial need, of indu,try1 trade and agriculture" (ommercial ban,
can be cla,,ified into two categorie, namely Scheduled (ommercial 7an, and
5on2Scheduled (ommercial 7an, (8ocal 0rea 7an,)" Scheduled (ommercial
7an, are ban, that are li,ted in the ,chedule to the %e,erve 7an of India 0ct1
193>1 and may further be cla,,ified a, public ,ector ban,1 private ,ector ban,1
corre,pondent ban,1 foreign ban, and regional rural ban,"
Scheduled commercial ban, have a pre,ence throughout India1 with
appro-imately E0F of ban branche, belonging to the public ,ector ban, are
located in rural or ,emi2urban area, of the country"
Pu1lic +ector Bank8
!ublic ,ector ban, con,titute the large,t category in the Indian baning ,y,tem"
$hey include the State 7an of India and it, E a,,ociate ban,1 19 nationali,ed
ban, and 19@ regional rural ban," 0, of #une 301 300>1 apart from the regional
rural ban,1 the other public ,ector ban, have over >@1500 branche," !ublic
C
Sector 7an, collectively account for appro-imately E3"3F of the out,tanding
gro,, ban credit and EE"9F of the aggregate depo,it, of the ,cheduled
commercial ban," $he large networ of public ,ector ban branche, enable,
them to fund them,elve, out of low co,t depo,it," $he State 7an of India i, the
large,t public ,ector ban in India"
Pri-ate +ector Bank8
0fter the fir,t pha,e of ban nationali/ation wa, completed in 19@91 public
,ector ban, made up the large,t portion of Indian baning" In #uly 19931 a, part
of the baning reform proce,, and a, a mea,ure to induce competition in the
baning ,ector1 %7I permitted entry by the private ,ector into the baning
,y,tem" $hi, re,ulted in the introduction of nine private ,ector ban," $he,e
ban, are collectively nown a, the 4newG private ,ector ban," $here are ten
4newG private ,ector ban, at pre,ent" In addition1 30 private ,ector ban,
e-i,ting prior to #uly 1993 are currently operating a, on #une 300>"
Foreign 1ank8
0, of #une 301 300>1 there were 33 foreign ban, with 315 branche, operating
in India" 0, part of the liberali/ation proce,,1 %7I ha, permitted foreign ban,
to operate more freely1 ,ub.ect to requirement, largely ,imilar to tho,e impo,ed
on dome,tic ban," Doreign ban, operate in India through branche, of their
parent ban," In fi,cal 30031 the )overnment announced that foreign ban,
would be permitted to incorporate ,ub,idiarie, in India" Sub,idiarie, of foreign
ban, will have to adhere to all baning regulation,1 including priority ,ector
lending norm,1 applicable to dome,tic ban,"
$he primary activity of mo,t foreign ban, in India ha, been in the corporate
,egment" 9owever1 in recent year,1 ,ome of the larger foreign ban, have
,tarted to mae con,umer financing a larger part of their portfolio, ba,ed on the
growth opportunitie, in thi, area in India" $he,e ban, offer product, ,uch a,
automobile1 finance1 home loan,1 credit card, and hou,ehold con,umer finance"
$he government ha, al,o announced that foreign ban, having branch pre,ence
in India will be permitted ,ub.ect to certain condition, to acquire up to E>"0F
,hareholding in private ,ector ban, in India"
9
Cooerati-e Bank8
(ooperative ban, cater to the financing need, of agriculture1 ,mall indu,try
and ,elf2employed bu,ine,,men in urban and ,emi2urban area, of India" $he
,tate land development ban, and the primary land development ban, provide
long2term credit for agriculture" In the light of liquidity and in,olvency
problem, e-perienced by ,ome cooperative ban, in fi,cal 30011 %7I undertoo
,everal interim mea,ure,1 pending formal legi,lative change,1 including
mea,ure, related to lending again,t ,hare,1 borrowing, in the call maret and
term depo,it, placed with other urban cooperative ban," !re,ently1 %7I i,
re,pon,ible for ,upervi,ion and regulation of urban co2operative ,ocietie,1 and
the 5ational 7an for 0griculture and %ural +evelopment (5070%+) for State
(o2operative 7an, and +i,trict (entral (o2operative 7an,"
Non@Bank Finance Co.anie8
$here are over 131@E1 non2ban finance companie, in India a, at end2#une
300>1 mo,tly in the private ,ector" 0ll non2ban finance companie, are required
to regi,ter with %7I in term, of the %e,erve 7an of India (0mendment) 0ct1
199E" $he nonban finance companie,1 on the ba,i, of their principal activitie,
are broadly cla,,ified into four categorie, namely 'quipment 8ea,ing1 9ire
!urcha,e 1 8oan and Inve,tment (ompanie, and depo,it, and bu,ine,, activitie,
of %e,iduary 5on27aning (ompanie, (%57(,)" $he %e,erve 7an ha, put in
place a ,et of direction, to regulate the activitie, of 57D(, under it,
.uri,diction" $he direction, are aimed at controlling the depo,it acceptance
activity of 57D(," $he 57D(, which accept public depo,it, are ,ub.ect to ,trict
,upervi,ion and capital adequacy requirement, of %7I" &ut of 131@E1 57D(,
regi,tered with %7I a, at end2#une 300>1 5C> 57D(, accept !ublic +epo,it,"
$he ,cope and activitie, of non2ban finance companie, have grown
,ignificantly over the year," $he primary activitie, of the non2ban finance
companie, are con,umer credit including automobile finance1 home finance and
con,umer durable product, finance1 whole,ale finance product, ,uch a, bill
di,counting for ,mall and medium2,i/ed companie,1 and fee2ba,ed ,ervice, ,uch
a, inve,tment baning and underwriting" In 30031 ?ota :ahindra Dinance
8imited1 a large non2ban finance company wa, granted a baning licen,e by
%7I and converted it,elf into ?ota :ahindra 7an"
10
9ou8ing Finance Co.anie8
9ou,ing finance companie, form a di,tinct ,ub2group of the non2ban finance
companie, and are regulated by 5ational 9ou,ing 7an (597)" 0, a re,ult of
the variou, incentive, given by the )overnment for inve,ting in the hou,ing
,ector in recent year,1 the ,cope of their bu,ine,, ha, grown ,ub,tantially" *ntil
recently1 9ou,ing +evelopment Dinance (orporation 8imited wa, the premier
in,titution providing hou,ing finance in India" In recent year,1 ,everal other
player, including public and private ,ector ban, have entered the hou,ing
finance indu,try" $he 5ational 9ou,ing 7an and the 9ou,ing and *rban
+evelopment (orporation 8imited are the two )overnment2controlled financial
in,titution, created to improve the availability of hou,ing finance in India" $he
5ational 9ou,ing 7an 0ct provide, for refinancing and ,ecuriti/ation of
hou,ing loan,1 foreclo,ure of mortgage, and ,etting up of the :ortgage (redit
)uarantee Scheme"
+ecialiAed Financial )n8titution8
In addition to the long2term lending in,titution,1 there are variou, ,peciali/ed
financial in,titution, that cater to the ,pecific need, of different ,ector," $hey
include the 5ational 7an for 0gricultural and %ural +evelopment1 '-port
Import 7an of India1 Small Indu,trie, +evelopment 7an of India1 %i,
(apital and $echnology Dinance (orporation 8imited1 $ouri,m Dinance
(orporation of India 8imited1 5ational 9ou,ing 7an1 !ower Dinance
(orporation 8imited and the Infra,tructure +evelopment Dinance (orporation
8imited"
)n8urance Co.anie8
(urrently1 there are 3E in,urance companie, in India1 of which 13 are life
in,urance companie,1 13 are general in,urance companie, and one i, a
rein,urance company" &f the 13 life in,urance companie,1 13 are in the private
,ector and one i, in the public ,ector" 0mong the general in,urance companie,1
eight are in the private ,ector and five are in the public ,ector" $he rein,urance
company1 )eneral In,urance (orporation of India1 i, in the public ,ector" 8ife
In,urance (orporation of India1 )eneral In,urance (orporation of India and
11
public ,ector general in,urance companie, al,o provide long2term financial
a,,i,tance to the indu,trial ,ector"
In +ecember 19991 the In,urance %egulatory and +evelopment 0uthority 0ct
1999 wa, pa,,ed" $he in,urance ,ector in India i, regulated by the In,urance
%egulatory and +evelopment 0uthority1 which wa, e,tabli,hed to protect the
intere,t, of holder, of in,urance policie,1 to regulate promote and en,ure orderly
growth of the in,urance indu,try and for related matter," $he I%+0 0ct opened
up the Indian in,urance ,ector for foreign and private inve,tor," $he 0ct allow,
foreign equity participation in new in,urance companie, of up to 3@"0F" 0 new
in,urance company i, required to have a minimum paid up equity capital of %,"
1"0 crore to carry out the bu,ine,, of life in,urance or general in,urance or %,"
3"0 crore to carry out e-clu,ively the bu,ine,, of rein,urance"
(utual Fund8
Drom 19@3 to 19CE1 *nit $ru,t of India wa, the only mutual fund operating in
India" It wa, ,et up in 19@3 at the initiative of the )overnment and %7I" Drom
19CE onward,; ,everal other public ,ector mutual fund, entered thi, ,ector"
$he,e mutual fund, were e,tabli,hed by public ,ector ban,1 the 8ife In,urance
(orporation of India and )eneral In,urance (orporation of India" $he mutual
fund, indu,try wa, opened up to the private ,ector in 1993" $he indu,try i,
regulated by the S'7I (:utual Dund) %egulation 199@"
).act Of %i1eraliAation On The )ndian Financial +ector
*ntil 19911 the financial ,ector in India wa, heavily controlled and commercial
ban, and long2term lending in,titution,1 the two dominant financial
intermediarie,1 had mutually e-clu,ive role, and ob.ective, and operated in a
largely ,table environment1 with little or no competition" 8ong2term lending
in,titution, were focu,ed on the achievement of the )overnment=, variou,
,ocio2economic ob.ective,1 including balanced indu,trial growth and
employment creation1 e,pecially in area, requiring development" 8ong2term
lending in,titution, were e-tended acce,, to long2term fund, at ,ub,idi/ed rate,
through loan, and equity from the )overnment and from fund, guaranteed by
13
the )overnment originating from commercial ban, in India and foreign
currency re,ource, originating from multilateral and bilateral agencie,"
$he focu, of the commercial ban, wa, primarily to mobili/e hou,ehold
,aving, through demand and time depo,it, and to u,e the,e depo,it, to meet the
,hort2term financial need, of borrower, in indu,try1 trade and agriculture" In
addition1 the commercial ban, provided a range of baning ,ervice, to
individual, and bu,ine,, entitie," Since 19911 variou, financial ,ector reform,
have tran,formed the operating environment of the ban, and long2term lending
in,titution," In particular1 the deregulation of intere,t rate,1 emergence of a
liberali/ed dome,tic capital maret1 and entry of new private ,ector ban,1
along with the broadening of long2term lending in,titution,= product portfolio,1
have progre,,ively inten,ified the competition between ban, and long2term
lending in,titution," %7I ha, permitted the tran,formation of long term lending
in,titution, into ban, ,ub.ect to compliance with the prudential norm,
applicable to ban,"
Banking +ector Refor.
:o,t large ban, in India were nationali/ed in 19@9 and thereafter were ,ub.ect
to a high degree of control until reform began in 1991" In addition to controlling
intere,t rate, and entry into the baning ,ector1 the,e regulation, al,o channelled
lending into priority ,ector," 7an, were required to fund the public ,ector
through the mandatory acqui,ition of low intere,t2bearing )overnment
,ecuritie, or ,tatutory liquidity ratio bond, to fulfil ,tatutory liquidity
requirement," 0, a re,ult1 ban profitability wa, low1 non2performing a,,et,
were comparatively high1 capital adequacy wa, dimini,hed1 and operational
fle-ibility wa, hindered"
Co..ittee on the Financial +/8te. BNara8i.ha. Co..ittee )C
$he (ommittee on the Dinancial Sy,tem ($he 5ara,imham (ommittee I) wa,
,et up in 0ugu,t 1991 to recommend mea,ure, for reforming the financial
,ector" :any of the recommendation, made by the committee1 which addre,,ed
organi,ational
13
i,,ue,1 accounting practice, and operating procedure,1 were implemented by the
)overnment" $he ma.or recommendation, that were implemented included the
following<
Bith fi,cal ,tabili/ation and the )overnment increa,ingly re,orting to
maret borrowing to rai,e re,ource,1 the ,tatutory liquidity ratio or the
proportion of a ban=, net demand and time liabilitie, that were required
to be inve,ted in )overnment ,ecuritie, wa, reduced from 3C"5F in the
pre2reform period to 35"0F in &ctober 199E" $hi, meant that the
,ignificance of the ,tatutory liquidity ratio ,hifted from being a ma.or
in,trument for financing the public ,ector in the pre2reform era to
becoming a prudential requirement;
,imilarly1 the ca,h re,erve ratio or the proportion of a ban=, net demand
and time liabilitie, that were required to be depo,ited with %7I wa,
reduced from 15"0F in the pre2reform period to >"5F currently;
,pecial tribunal, were created to re,olve bad debt problem,;
:o,t of the re,triction, on intere,t rate, for depo,it, were removed"
(ommercial ban, were allowed to ,et their own level of intere,t rate, for
all depo,it, e-cept ,aving, ban depo,it,;
Sub,tantial capital infu,ion to ,everal ,tate2owned ban, wa, approved in
order to bring their capital adequacy clo,er to internationally accepted
,tandard," 7y the end of fi,cal 30031 aggregate recapitali,ation amounted
to %," 31E"5 crore" $he ,tronger public ,ector ban, were given
permi,,ion to i,,ue equity to further increa,e capital; and
ban, were granted the freedom to open or clo,e branche,"
Co..ittee on Banking +ector Refor. BNara8i.ha. Co..ittee ))C
$he ,econd (ommittee on 7aning Sector %eform (5ara,imham (ommittee II)
,ubmitted it, report in 0pril 199C" $he ma.or recommendation, of the
1>
committee were in re,pect of capital adequacy requirement,1 a,,et cla,,ification
and provi,ioning1 ri, management and merger policie," %7I accepted and
began implementing many of the,e recommendation, in &ctober 199C"
6. ING Bank
$he I5) 6y,ya 7an 8td i, one of the well nown financial organi/ation, in
India" It i, applicable for both ,hort term and long term financial ,olution," It i,
mainly an entity or a venture which ha, been formed with the global financial
giant I5) of 5etherland," $he I5) 6y,ya 7an 8td i, a tru,ted name in the
baning and commercial ,ector of the country"
$he I5) 6y,ya 7an 8td wa, e,tabli,hed in the month of &ctober in the year
3003" $he ban came into e-i,tence when the 6y,ya 7an 8td went into a
venture with global financial giant I5)" 6y,ya 7an 8td wa, one of the fir,t
private ,ector ban, in the country and wa, ,et up in the year 1930" $he main
ob.ective of ,etting up the ban wa, to provide financial ,upport to the variou,
,ector, of the economy" In the year 19>C1 the 6y,ya 7an wa, li,ted among the
Scheduled 7an,"
In order to increa,e it, profit and add to it, operation,1 the 6y,ya 7an 8td
merged with I5)" $he headquarter, of the ban i, located in the city of
7angalore" 0mong the total number of branche,1 there are >@C regular branche,1
3C ,atellite office,1 13 e-ten,ion counter," $he number of 0$:, i, around 35E
which are e-pected to increa,e within the ne-t few year," $he depo,it of the
ban amount, to around %," 351C@5 crore while the net worth i, around %,
1>3@0"00 million," $he profit, of the ban amount to around %," 3>3"3 crore"
Bith E> year, of e-perience in the Indian baning ,egment and with I5)
)roup=, active participation in managing the affair, of the 7an1 the 7an i,
uniquely po,itioned a, an HIndian made= Doreign 7an"
7eing a well nown name in the domain of financial and baning ,ervice, in the
country1 the I5) 6y,ya 7an 8td ha, come up with a number of financial
,olution, and ,ervice, in a number of area," Some of the well nown ,egment,
in which the ban offer, cu,tomi/ed and ,peciali/ed ,ervice, are<
0ccount, and depo,it,
Short and long term loan,
15
!rivate baning
5%I ,ervice,
Per8onal Banking3 $he per,onal baning department of I5) 6y,ya 7an 8td
offer, high quality ,ervice, and ,olution, to cater to the financial need, and
preference," $he high end ,olution, mae them a one ,top organi/ation to fulfill
the need, and requirement, of the cu,tomer," Some of the well nown ,ervice,
offered in the ,egment of per,onal baning are<
:utual Dund,
$a- Saving, 7ond,
Saving, 0ccount
5%I Service,
(redit I +ebit (ard
Internet 7aning
!hone 7aning
:obile 7aning
Self 7aning
$erm depo,it,
+emat accounting
Bealth management
+ebit and credit card accounting
!ayment ,ervice,
$ealth (anage.ent 8er-ice83 $he wealth management ,ervice, of the I5)
6y,ya 7an 8td offer, the be,t ,ervice, in order to tae care of the need, and
preference, of the con,umer, in variou, wealth management ,ector," $he ,ecure
,ervice, offered by the ban al,o minimi/e the ri, proce,,e, and al,o offer the
be,t of return," In addition to the,e1 I5) 6y,ya 7an 8td al,o offer, bu,ine,,
baning facilitie, and ,ervice, of high ,tandard," $he ,ervice, are meant to tae
care of the bu,ine,, need, and al,o provide high degree of financial ,tability to
the variou, corporate organi/ation, and bu,ine,, ,ector," Some of the well
nown ,ervice, that are offered include<
1@
8ong and term loan, in the agro ba,ed ,ector
S:'2 !ower 7u,ine,, account and loan,
Dinancial maret analy,i,
:aret trading
0,,et liability management ,ervice,
Dinancial maret ,ale,
(a,h management ,ervice,
(orporate and inve,tment baning ,ervice,
&ff ,hore borrowing ,ervice,
$rade and community finance ,ervice,
7. PROFILE
0, of :arch 311 300>1 $he 7an wa, the ,eventh large,t private ,ector ban in
India in term, of a,,et, with total a,,et, of %," 1319C crore"
&ur bu,ine,, ha, been organi/ed into RETA)% BANK)N' and
$9O%E+A%E BANK)N'"
&ur RETA)% BANK)N' bu,ine,, compri,e, four bu,ine,, unit, namely
1" (on,umer 7aning1
3" Small and :edium 'nterpri,e, (S:')
3" 0griculture and Social 7aning *nit (0S7*) and
>" !rivate 7aning"
#. Con8u.er Banking
$he (on,umer 7aning bu,ine,, con,i,t, of (on,umer 8ending and (on,umer
8iabilitie,1 which offer, to retail con,umer both a,,et ba,ed product, ,uch a,
home loan,1 per,onal loan,1 credit card, and liability product,1 ,uch a, ,aving,
account,1 ,alary account, and term depo,it," $he 7an have focu,ed our effort,1
re,ource, and talent to en,ure that $he 7an capitali/e fully on the opportunitie,
available to u,"
1E
(a) (on,umer 8ending
(on,umer lending deal, with granting ,ecured loan, to individual,1
partner,hip firm,1 and companie,1 a, well a, un,ecured loan, to
individual, for variou, purpo,e," &ur bu,ine,, i, primarily driven through
19 0,,et 7ooing (entre, ,pread over the country1 where con,umer
finance loan, are di,bur,ed"
$he 7an have following con,umer lending product, in our portfolio"
9o.e %oan83 In the year 30031 $he 7an introduced cu,tomi/ed home
loan, with built in free life in,urance for the full loan term and amount
and a floating rate ba,ed on maret determined rate (:I7&%)" $he 7an
believe that compared to our competitor,1 thi, i, a uniquely featured
product1 which ha, already re,ulted in volume, of %," EE"E> crore,
covering CC> account,1 a, of September 301 300>" 0dditionally1 the 7an
i, planning to add further feature, and fle-ibility to meet the demand, of
the cu,tomer"
Credit Card83 &ur credit card charge, a relatively low nominal rate of
1"5F on ca,h withdrawal," $he 7an do not charge any tran,action fee on
fuel purcha,ed and al,o enable, global acce,, to over 30 million merchant
e,tabli,hment, worldwide" $he card i, i,,ued in partner,hip with
(itiban1 which allow, the ban and it, cu,tomer, to benefit from the
(itiban=, e-perience in proce,,ing credit card,"
Auto loan83 $he 7an introduced auto loan, in 3000 to provide finance
to individual, and corporate, for purcha,e of new and u,ed car," $he
average tenor of auto loan i, between three to five year," 0uto loan, are
,ecured by a charge on the purcha,ed automobile" $hi, bu,ine,, i,
managed by our di,tribution ,y,tem ,upported with (redit and %i,
:anagement $eam,1 which ha, been in,trumental in achieving targeted
volume,"$he 7an have ,trong relation,hip, with certain automobile
manufacturer, and are the Hpreferred financier,= to 3 automobile
manufacturer,1 in India"
T4o $heeler loan83 $wo2wheeler loan, were introduced in 3001
primarily to facilitate purcha,e of two2wheeler, for individual and
corporate cu,tomer," $wo wheeler loan, are ,ecured by a charge on the
moveable a,,et" $he average tenure of loan i, between one to three year,"
1C
&ur bu,ine,, ha, recorded growth ever ,ince it, inception owing to our
di,tribution ,y,tem1 cu,tomer oriented ,cheme, and fa,t turnaround time"
Per8onal %oan83 $he,e are un,ecured loan, provided to cu,tomer, for
variou, purpo,e, ,uch a, higher education1 medical e-pen,e,1 ,ocial
event, and holiday," Introduced in 30031 thi, product ha, witne,,ed
growth owing to our cu,tomer program, and di,tribution team"
Ad-ance8 again8t &e.at 8ecuritie83 $he 7an introduced 0dvance
again,t +emat Securitie, in 30031 which ha, re,ulted in volume, of %,"
1"CC crore,1 covering 5C account,1 a, of September 301 300>"
%oan8 for 8u18cri1ing to )PO83 $he loan, for ,ub,cribing to I!&, came
in 30031 which ha, re,ulted in volume, of %," 0"05 crore, a, of
September 301 300>"
Co..ercial =ehicle %oan83 $he (ommercial 6ehicle 8oan, wa,
introduced in 3001" $he 7an e-tend loan, for purcha,e of new and u,ed
(ommercial 6ehicle, 2 :06, (:ulti 0-le 6ehicle,)1 9(6, (9eavy
(ommercial 6ehicle,)1 :(6, (:edium (ommercial 6ehicle,) and 8(6,
(8ight (ommercial 6ehicle,)1 which include 7u,e,1 $ruc,1 Dully built
vehicle, I $ipper," $he loan i, generally granted for a ma-imum term of
>C month,"
(b) (on,umer 8iabilitie,
%e,ource mobili/ation in %etail 7aning i, a core activity of our ban" &ur
7an ha, a cu,tomer ba,e1 of nearly one million with over %,"101 000 crore, of
depo,it,1 with a mi- of Saving,1 (urrent and $erm depo,it,"
$he 7an have the following con,umer liability product, in our portfolio
Orange +a-ing8 Account3 $he &range Saving, 0ccount wa, introduced
in 0ugu,t 3003" It ha, ,ecured more than 1351000 new cu,tomer," $he
ey feature, of &range Saving, 0ccount are free per,onal accident
in,urance cover including medical e-pen,e, for three year,1 free
19
unlimited 0$: tran,action, in over 91000 :a,ter(ard networed 0$:,
in India and over,ea,1 free member,hip to Smart,erv (!er,onal a,,i,tance
,ervice) and other facilitie, lie Internet 7aning1 $ele baning1
0nywhere 7aning and other privilege,"
Orange Current Account3 $he &range (urrent 0ccount wa, launched in
+ecember 3003" Some of the di,tinct feature, of the account are free
per,onal accident in,urance cover1 free ca,h in tran,it in,urance1 free
0$: tran,action, in :a,ter(ard networ1 free ++,J!&J!0! cheque,
upto %, 1"5 crore per month and many other facilitie," Since +ecember
30031 thi, product ha, ,ecured more than 31500 cu,tomer account, and
mobili/ed over %, 150 crore,"
(o4er +alar/ Account3 Introduction of the :power Salary 0ccount
came in 5ovember 30031 which e-pedite, the proce,, of ,alary
payment,1 facilitating both employer and employee,"
Ad-antage +a-ing83 In September 300>1 the 7an launched a ,cheme
e-clu,ively for the cu,tomer, of nonnetwored branche, with accident
In,urance a, the ey feature" $he ,cheme envi,age, coverage of ,aving,
ban account holder, under per,onal accident in,urance to a ma-imum of
%,"0"03 crore,"
Ter. &eo8it83 $he 7an offer, fi-ed1 reinve,tment and recurring
depo,it, with all the facilitie, for ea,y tran,ferability1 different mode, of
intere,t payment,1 advance again,t depo,it1 premature withdrawal facility1
acceptance in unit, and nomination facility" 0 ,i/eable portion of the
portfolio i, ,ewed toward, reinve,tment depo,it, amounting to over %,"
E1300 crore,"
&e1it Card83 $he 7an have tied2up with :a,ter (ard International, to
i,,ue the International +ebit (ard with :ae,troJ(irru, connectivity" $hi,
enable, our debit card holder, to acce,, over 9000 0$:, of
:ae,troJ(irru, member ban, and over E01000 merchant e,tabli,hment,
over India"
30
!. +.all and (ediu. Enterri8e8 B+(EC
$raditionally our focu, ha, been on the Small and :edium 'nterpri,e, bu,ine,,1
which ha, accounted for a ,i/eable proportion of our total advance," $hi,
,egment focu,e, on the need, of all bu,ine,, enterpri,e, in trading of
good,J,ervice, with annual ,ale, turnover up to %," E5 crore, for both dome,tic
I e-port credit requirement," $he 7an have a large number of relation,hip,
which i, a core ,trength enabling u, to cro,, ,ell other product, lie
Saving,J(urrentJ$erm depo,it,1 In,urance and :utual Dund inve,tment,1 (redit
(ard1 6y,2+! etc"
6. Agriculture & +ocial Banking Unit BA+BUC
0S7* deal, with all baning bu,ine,, in rural branche, and bu,ine,, related to
0gricultural activitie, and lending to government ,pon,ored ,cheme, in other
non2rural branche,"
:. Pri-ate Banking
In India1 the er,twhile I5) 7an wa, one among the fir,t, to offer private
baning ,ervice," 0fter I5) )roup inve,ted in the 7an1 the private baning
arm of I5) 7an wa, integrated into I5) 6y,ya 7an" $he client management
team i, ,upported by a product development team1 and a re,earch team headed
by the (hief Inve,tment &fficer"
$he following ey product, and ,ervice, are in the domain of our private
baning<
)n-e8t.ent +olution83 $he 7an ha, portfolio management ,ervice, are
nondi,cretionary in nature and include con,tructionJ re,tructuring of the
portfolio,1 monitoring them and e-ecuting client=, reque,t," &ur
inve,tment product, include debt1 equity1 mutual fund, and in,urance"
31
The Bank +tructuring for &i-er8e Need83 $he 7an ,tructuring
,ervice, embrace will,1 tru,t, and other $he 7an ha, e,tabli,hed mean,
of protecting and di,tributing a,,et," $he 7an al,o provide real2e,tate
advi,ory ,ervice, that focu, on broad2ba,ing the client=, $he 7an ha,
allocation and income ,tream,1 a, the 7an provide, ta- and legal
planning ,ervice, through ,peciali/ed partner,"
$he 7an offer, cu,tomer, a choice of &E%)=ERD C9ANNE%+ including<
phy,ical branche,1
0utomated $eller :achine (0$:,)1
telephone baning1
S:S
and the Internet"
In recent year,1 the 7an have e-panded our phy,ical delivery channel,1
including ban branche, and 0$:,1 to currently cover a total of C@@ outlet, in
39C location, throughout India"
$he $9O%E+A%E BANK)N' i, organi/ed into three group,<
(lient (overage1
!roduct, and Service, and
Dinancial :aret,"
Bhile the (lient (overage group i, re,pon,ible for managing relation,hip, with
identified client ,ub2group,1 the !roduct, and Service, and Dinancial :aret,
group, are re,pon,ible for product and ,ervice delivery to the entire Bhole,ale
7aning client ba,e"
$hole8ale Banking Product8 and +er-ice8
$he 7an provide, a range of commercial baning product, and ,ervice, to
India=, leading corporation, and growth2oriented middle maret bu,ine,,e," &ur
ey commercial baning product, and ,ervice, to corporate cu,tomer, include
(a) (redit !roduct, and Structured Dinance; (b) (a,h :anagement; (c) $rade
33
and (ommodity Dinance; (d) Inve,tment 7aning1 8ocal +ebt Syndication and
Securiti,ation,1 (e) Dinancial :aret, and (f) (orporate +epo,it,"
BaC Credit Product8 and +tructured Finance
(redit !roduct, of the 7an include product, lie Boring (apital Dinance1
$erm Dinance and Structured Dinance" &ur corporate loan portfolio primarily
con,i,t, of term loan, for pro.ect and corporate finance1 and woring capital
credit facilitie,"
BiC $orking Caital Finance< *nder woring capital finance1 $he 7an offer,
the following product, and ,ervice, to our cu,tomer,"
Ca8h Credit E O-erdraft Facilitie83 (a,h credit facilitie, are the mo,t
common form of woring capital financing in India" *nder the ca,h credit
facility1 a line of credit i, provided up to a pre2e,tabli,hed amount ba,ed
on the borrower=, creditability and pro.ected level of inventorie,1
receivable, and ca,h deficit," *p to thi, pre2e,tabli,hed amount1
di,bur,ement, are made ba,ed on the actual level of inventorie, and
receivable," (a,h credit J &verdraft facilitie, are running account
facilitie, where the borrower may remit and draw fund, freely" $he,e are
typically given to companie, in the manufacturing1 trading and ,ervice
,ector, on a floating intere,t rate ba,i," Intere,t i, earned on thi, facility
on a monthly ba,i,1 ba,ed on the daily out,tanding amount," $he facility
i, generally given for a period of up to 13 month,1 with a review after that
period" &ur ca,h credit facility i, generally fully ,ecured with full
recour,e to the borrower" In mo,t ca,e,1 the 7an ha, a fir,t charge on the
borrower=, current a,,et,1 which normally are inventory and receivable,"
0dditionally1 in ,ome ca,e,1 the 7an may tae further ,ecurity of a fir,t
or ,econd lien on fi-ed a,,et, including real e,tate1 a pledge of financial
a,,et, lie maretable ,ecuritie,1 corporate guarantee, and per,onal
guarantee," (a,h credit facilitie, are e-tended to borrower by a ,ingle
ban1 multiple ban, or a con,ortium of ban, with a lead ban" $he
nature of the arrangement i, u,ually agreed between the ban and the
borrower, and depend, upon the amount of woring capital financing
required by the borrower1 the ri, profile of the borrower and the amount
of loan e-po,ure a ,ingle ban can tae on the borrower" %egardle,, of
the arrangement1 the 7an undertae our own due2diligence and follow
our credit ri, policy to determine whether the 7an ,hould lend money
33
to the borrower and1 if ,o1 the amount to be lent to the borrower and the
rate of intere,t to be charged"
Co..ercial aer3 0 commercial paper i, an un,ecured1 ,hort2term
corporate paper in the nature of a u,ance promi,,ory note with fi-ed
maturitie, and i, negotiable by endor,ement and delivery" *nder current
guideline,1 commercial paper can be i,,ued for a minimum tenor of 15
day, and a ma-imum tenor of 3@5 day," (ommercial paper, are generally
i,,ued by highly rated borrower and ,ince they are tradeable1 they offer u,
a liquid inve,tment opportunity"
Bill &i8counting3 7ill di,counting involve, the financing of ,hort2term
trade receivable, through negotiable in,trument," $he,e negotiable
in,trument, can then be di,counted with other ban, if required1
providing u, with liquidity" In addition to traditional bill di,counting1 the
7an al,o provide, cu,tomi,ed ,olution, to our corporate cu,tomer,
having large dealer networ," 8oan, are approved to dealer, in the form
of woring capital line, of credit1 ba,ed on analy,i, of credit ri, profile,
of dealer,"
+hort@ter. loan3 Short2term loan, are demand loan, with a maturity of
three to ,i- month, provided by u, to corporate borrower, to meet their
temporary ca,h flow mi,matche, or to avail of intere,t rate arbitrage"
$hey can be denominated >3 in either rupee or foreign currency and can
be di,bur,ed a, fi-ed rate loan, or floating rate loan, lined to our 7an=,
reference rate called I6%% or money maret benchmar rate," Short term
loan, are u,ually provided to highly rated corporate, and may be
un,ecured"
E,ort Credit3 $he %7I require, ban, to mae loan, to e-porter, at
conce,,ional rate, of intere,t" $he 7an provide, e-port credit for pre2
,hipment and po,t2,hipment requirement, of e-porter borrower, in rupee,
and foreign currencie," $he %7I provide, e-port credit refinancing for an
eligible portion of total out,tanding e-port loan, at the ban rate
prevailing from time to time" $he intere,t income earned on e-port credit,
i, ,upplemented through fee, and commi,,ion, earned from the,e
e-porter cu,tomer, from other fee2ba,ed product, and ,ervice, availed by
them from u,1 ,uch a, foreign e-change product,"
3>
%etter8 of Credit3 8etter of credit facilitie, are being provided to our
woring capital loan cu,tomer, both for meeting their woring capital
need, a, the 7an for capital equipment purcha,e," Dor woring capital
purpo,e,1 the 7an i,,ue letter, of credit, on behalf of our borrower, for
the ,ourcing of their raw material, and ,toc input," 8ine, of credit for
letter, of credit are approved a, part of a woring capital loan pacage
provided to borrower," $he,e facilitie,1 lie ca,h credit facilitie,1 are
generally given for a period up to 13 month,1 with review after that
period" $ypically1 the line i, drawn down on a revolving ba,i, over the
term of the facility1 re,ulting in a fee payable to u, at the time of each
drawdown1 ba,ed on the amount and term of the drawdown" $he 7an
i,,ue letter, of credit on behalf of borrower, both for dome,tic and
foreign purcha,e," 7orrower, pay a fee to u, ba,ed on the amount drawn
down from the facility and the term of the facility" $hi, facility i,
generally ,ecured by the ,ame collateral available for ca,h credit
facilitie," $he 7an may al,o tae collateral in the form of ca,h depo,it,1
in the range of 5"0F to 30"0F of the drawdown amount1 from our
borrower, before each drawdown of the facility"
'uarantee83 )uarantee, are being provided1 which can be drawn down
any number of time, up to the committed amount of the facility" $he
7an i,,ue guarantee, on behalf of our borrower, in favour of
corporation, and government authoritie," )uarantee, are generally i,,ued
for the purpo,e of bid bond,1 guaranteeing the performance of our
borrower, under a contract a, ,ecurity for advance payment, made to our
borrower, by pro.ect authoritie, and for deferral of and e-emption from
the payment of import dutie, granted to our borrower, by the government
again,t fulfilment of certain e-port obligation, by our borrower," $he
term of the,e guarantee, i, generally up to 3@ month, though in ,pecific
ca,e,1 the term could be higher" $hi, facility i, generally ,ecured by
collateral ,imilar to that of letter, of credit" In addition1 a, a part of our
pro.ect financing activity1 $he 7an i,,ue guarantee, to foreign lender,1
e-port credit agencie, and dome,tic lender, on behalf of our client,"
$he 7an ha, one wholly owned ,ub,idiary1 being I6DS8 and two
affiliateJa,,ociate companie, being II:8 and I68" II:8 i, an 0,,et
:anagement (ompany which manage, the I5) 6y,ya :utual Dund and I68 i,
a life in,urance company which provide, a range of individual and group life
in,urance ,olution,1 pen,ion product,1 employee benefit,; I6DS8 di,tribute, life
35
in,urance policie, of I681 mutual fund, from I5) 6y,ya :utual Dund and third
party inve,tment product, apart from di,tributing our own product,"
8. BUSINESS STRATEGY
$he ob.ective i, to build a recogni/able po,ition a, a premier baning and other
financial ,ervice, product, provider to retail and whole,ale cu,tomer,"
$he ey element, of our bu,ine,, ,trategy are to<
Dully leverage the ,ynergie, (including ,upport and commitment)
available from I5)
Docu, on growth opportunitie, in the %etail baning bu,ine,,;
Strengthen Bhole,ale 7aning operation,;
'-pand retail di,tribution capabilitie,; and
*,e of technology for competitive advantage
9. TECHNOLOGY USED IN ING Vysya Bank
$he 7an ,ee, to be at the forefront of technology u,age in the financial
,ervice, ,ector" Information technology i, a ,trategic tool for our bu,ine,,
operation, to gain competitive advantage and to improve overall productivity
and efficiency of the organi/ation" 0ll of our technology initiative, are aimed at
enhancing value1 offering cu,tomer convenience and improved ,ervice while
optimi/ing co,t,"
$he 7an e-pect, to continue with our ,trategy of leveraging technology to
achieve a ,ignificant competitive advantage" $hi, will be done by I5) 6y,ya
7an leveraging on the ,y,tem, and proce,,e, that have already been developed
by I5) worldwide"
$he,e cover many function, in the ban1 including ri, management (credit1
maret1 operational)1 financial maret,1 :IS1 etc"
$he ey ob.ective, behind our information technology ,trategy include<
3@
building a co,t2efficient di,tribution networ in India to accelerate the
development of our retail di,tribution capability
enhancing cro,, ,elling and client ,egmentation"
improving credit and maret ri, management"
Introduction of cu,tomer centric product,
providing added value ,ervice, to $ier 1 corporate client, by al,o
leveraging on the global product and ,ervice delivery capabilitie, of I5)
capitali,ing on the ban,= legacy in the S:' bu,ine,,"
10. ACHIEVEMENTS AND MILESTONES
+etail, of ey mile,tone, achieved by u, ,o far are a, follow,<
Dear Ke/ E-ent8F (ile8tone8 and Achie-e.ent8
:arch 1930 Incorporation of $he 6y,ya 7an 8imited1 7angalore
Debruary 19>C 7ecame a ,cheduled ban in term, of the %7I 0ct
September 19C5 0chieved the no" one po,ition among private ,ector
ban, a, on +ecember 311 19C5
:arch 19CE Incorporation of $he 6y,ya 7an 8ea,ing 8imited (now
nown a, I5) 6y,ya Dinancial Service, 8imited) for lea,ing and
merchant baning activitie, along with ?arur 6y,ya 7an 8imited
#anuary 19CC Introduced co2branded credit card, by way of an affiliation
with (entral 7an of India"
5ovember 1990 Incorporation of 6y,ya 7an 9ou,ing Dinance 8imited
for hou,ing finance activitie,
:arch 1991 $otal depo,it, in the 7an cro,,ed %,"1000 crore,"
Financial (arket8 E Trea8ur/
$rea,ury i, the 7an=, interface to all Dinancial :aret," $he 7an ha, a well2
equipped Integrated +ealing %oom at it, (orporate &ffice in 7angalore" $he
late,t technology1 information ,y,tem, and ri, management ,y,tem, have been
deployed1 manned by e-perienced maret profe,,ional,"
$he 7an ha, an e-perienced team of money maret dealer, who en,ure that
our 7an i, compliant with the (a,h %e,erve %atio (currently at 5F) and
Statutory 8iquidity %atio (currently at 35F) ,tipulation, of the %7I" Dund,
inflow, and outflow, of the 7an are carefully monitored to en,ure that fund,
are available to meet the 7an=, requirement, at all time,"
3E
11. MY LEARNING
#.C CA+9 (ANA'E(ENT PROCE++
)NTRO&UCT)ON
1" 9andling of ca,h i, one of the primary function, of a baner and (a,h on
9and i, the mo,t liquid a,,et of the ban"
3" $he tran,action, where ca,h i, received into the ban are called H%eceipt,=
and where ca,h goe, out of the ban are called 4!ayment,G"
Joint Cu8tod/
#oint cu,tody mean, having control over acce,, to any itemJa,,et by two or
more individual, through a ,y,tem which prevent, independent acce,, to the
item Ja,,et by any one of them without the nowledge of the other or by
anyone el,e"
In ban,1 thi, will be en,ured by having double locing arrangement to the iron
,afeJ,trong roomJalmirah and other place, where the item,Ja,,et, are ,tored
which doe, not allow acce,, to the itemJa,,et by operating any one of the
ey, ,ingly"
$he ey, of the double locing arrangement will be in the .oint cu,tody of two
employee, de,ignated for the purpo,e" $he,e two employee, holding .oint
cu,tody are called 4#oint (u,todian,G"
3C
In a branch1 (a,h1 all ,ecurity item,1 gold ornament, pledged to the ban1
article, under ,afe cu,tody1 loan document,1 title deed, of propertie,
mortgaged to the ban etc"1 ,hall alway, be under .oint cu,tody only"
AT( RE%ATE& KED+
1" 0ll 0$:, will have the following ey,<
a" 9ood ?ey, or 7onnet ?ey,
b" ?ey, of the ,afe containing (a,h (a,,ette, and (a,h +epo,it (over,
c" 5umber code for 0$: ,afe
3" $he detail, of all the ey, ,hould be recorded in the ?ey movement regi,ter
and ,ignature of the concerned employee obtained for taing po,,e,,ion of
the ey,"
Ca8h (o-e.ent 4ithin the Branch
0t branche, ca,h will be taen out of the ,trong room J ,afe at the beginning of
the day1 for the day=, operation"
0t the end of the day1 the entire ca,h of the branch ,hall have to be amalgamated
at one point and tallied to arrive at the day=, clo,ing ca,h balance
(a,h &fficer ,hall prepare ,lip, for the following entrie, for the actual ca,h
taen out (including the ShroffK, (a,h) from the ca,h ,afe and al,o ey2in in
the ,y,tem under hi, *,er I+"
a" +ebit 2 $eller &ut ($&)
b" (redit 2 (a,h &ut ((&)
(a,hier ,hall append hi, ,ignature on rever,e of the debit ,lip while receiving
the ca,h from the (a,h &fficer" $he ,lip ,hall be in the cu,tody of the (a,h
&fficer"
(a,hier ,hall prepare corre,ponding ,lip, a, advi,ed hereunder for the actual
amount of ca,h handed over to him (including the ShroffK, (a,h) and al,o ey2
in in the ,y,tem under hi, *,er I+
a" +ebit 2 $eller In ($I)
b" (redit 2 (a,h In ((I)
'eneral 'uideline8 on Ca8h
39
(a,h being the mo,t liquid of a,,et, ha, to be handled carefully"
(a,hier mu,t be ready with the following to commence the bu,ine,, at the
,cheduled time<
a" 4(a,h %eceivedG and 4(a,h !aidG rubber ,tamp,"
b" Stamp pad with ,ufficient in"
c" Shroff=, Scroll"
d" 8i,t of mi,,ing toen,"
e" &ther ,tationery item, nece,,ary to di,charge their dutie, effectively"
f" 0ny other matter1 pre,cribed by the appropriate authoritie, from time to
time"
Clean Note Polic/
$he currency note being made of paper ,hall wear and tear with u,age"
7an, have been authori,ed by %e,erve 7an of India to accept ,uch note, and
provide e-change of i,,uable note, to cu,tomer, and get reimbur,ement from
%e,erve 7an of India"
C%EAN NOTE PO%)CD OF RB)
(urrency note, ,hould not be ,tapled (fre,h J re2i,,uable J non2i,,uable)"
5othing ,hould be written on the currency note, e,pecially in the watermar
window"
7ranche, ,hould not accept ,oiledJdefective note, for the purpo,e of i,,uing
+emand +raft,1 !ay &rder, etc"1 or while accepting Inter 7an +epo,it,
(a,hier ,hould not accept mutilatedJdefective note, from (u,tomer, for
immediate credit of their account,"
CUPRO@N)CKE% & A%U()NU( CO)N+
)overnment ha, withdrawn old coin, of value up to %e"1J2 made from (upro2
5icel alloy and 0luminum
FOR'E& NOTE+
(ounterfeiting of currency note, i, an offence under Sec">C9 (0) to (') of the
Indian !enal (ode and therefore1 the,e ca,e, are to be inve,tigated by the
State !olice 0uthoritie,"
7ranche, mu,t equip them,elve, with *ltra 6iolet 8amp, which mu,t be in
woring condition at all time, and made u,e of for detection of forged note,"
30
Bhen a note which i, ,u,pected to be forged J i, found to be forged1 the amount
of the ,ame ,hould not be credited to the account of the party nor the forged
note be returned to the tenderer"
$he forged note, ,hall be forwarded to the local police for inve,tigation by
filing DI%
CA+9 RECE)PT+
(u,tomer, remit ca,h for credit of their account or for any approved baning
tran,action," 5on2cu,tomer, al,o remit ca,h for certain ,pecific baning
tran,action,"
0ny per,on remitting ca,h into the ban mu,t fill in a form called !ay2in2Slip"
0 member of clerical ,taff entru,ted with the dutie, of ca,h i, called (a,h $eller"
CA+9 TE%%ER
(a,h $eller ,hould receive ca,h from the remitter alongwith the !ay2in2Slip1
verify whether the pre,cribed !ay2in2Slip i, ,ubmitted and that the ,ame along
with counterfoil are properly and correctly filled up"
9e ,hould verify whether the currencyJcoin, remitted are legal tender"
In re,pect of tran,action, where !05 i, to be quoted he ha, to en,ure that the
,ame i, quoted at the ,pace provided or at a prominent place on the pay2in2
,lip" 9e ,hould verify the !05 on the pay2in2,lip with the !05 recorded at
the (ID level and en,ure that both are the ,ame"
$he ca,h received ,hall be counted and verified in pre,ence of the remitter
denomination wi,e with that written in the !ay2in2SlipJvoucher"
(a,h counting machine, wherever provided are meant for ,econd
verificationJcounting of ca,h but not for the fir,t counting by the (a,h $eller"
$he !ay2in2Slip ,hould be ,tamped twice with the 4(a,h %eceivedG ,tamp with
date" $he ,tamping of one ,eal ,hould be done in ,uch a way that a ma.or
portion of it on the counterfoil and the remaining on the main challan"
0nother ,eal ,hould appear in full on the !ay2in2Slip" It ,hould be en,ured
that the ,eal, affi-ed do not render the content, on the !ay2in2Slip illegible"
(a,h $eller ,hould ,ign in full both on the !ay2in2SlipJ6oucher and counterfoil
and on copie, of the ,ame"
In ca,e of tran,action, lie i,,ue of ++, where the amount of !ay2in2Slip
include, commi,,ion to be credited to !rofit and 8o,, 0ccount1 the credit to
!rofit and 8o,, ,hall be entered in an inner column drawn for the purpo,e
31
and only the amount for which the ++ i, to be i,,ued ,hould be ,hown in the
receipt, column"
+UB()++)ON OF ANNUA% )NFOR(AT)ON RETURN BFOR( N o . 5<C
1" $he Income $a- +epartment ha, introduced a new 0nnual Information
%eturn (Dorm 5o" @5) to be ,ubmitted by ban, containing information in
re,pect of the following tran,action, entertained by them during a financial
year w"e"f" 01"0>"300>"
3" (a,h depo,it, aggregating to %,"10"00 lah, or more in a financial year in
any 8a-ing8 1ank account"
3" !ayment made by any per,on again,t bill, rai,ed in re,pect of credit card
aggregating to %," 3"00 lah, or more in a financial year"
>" (ertain other type, of tran,action,
CA+9 PAD(ENT+
$he paying (a,h $eller ,hall have ,ufficient ca,h for payment, before the
commencement of bu,ine,, everyday "
$he loo,e ca,h received i, to be properly ,egregated denomination wi,e and
ept in ,eparate bin, in the table draw"
5on2i,,uable, ,hould not be included either in loo,e ca,h or in pacet, and
,hould alway, be ept ,eparate"
(a,h $eller ,hould mae payment to the payee only on the voucher, received by
him with the proper authori/ation"
$he (a,h $ellerJ(a,h $eller receive, for payment the cheque, J withdrawal,
directly from the cu,tomer," 9e ,hould ,crutini/e the cheque,Jwithdrawal,
and pa,, the cheque,Jwithdrawal, by following the normal procedure for
payment
&n being ,ati,fied1 the (a,h $eller ,hould tae out the amount of the
voucherJcheque etc"1 from the ca,h1 write the denomination, on the bac of
the voucher1 recount1 and handover to the pre,enter"
&n maing payment1 the (a,h $eller ,hould affi- the 4(a,h !aidG ,tamp on the
voucher and ,ub,cribe ,ignature on the voucherJcheque etc"
C%O+)N' OF CA+9
0fter clo,e of bu,ine,, hour,1 the ca,hier ,hould count and ,ort the ca,h
available with him into i,,uable, and non2i,,uable,"
'ach Section of 100 piece, ,hould be covered with a denomination ,lip a,
,pecified hereunder<
33
a" Dorm 191 for i,,uable,
b" Dorm 1910 for non2i,,uable,
Bhile doing ,o<
a" $he Section ,hould not be ,tapled"
b" $he Section ,hould be bound only with rubber band, or twine thread"
c" Sticer, or gummed label, ,hould not be u,ed"
d" 0 combination of vertical and hori/ontal banding with ban=, ,ticer,
,hould be u,ed"
e" (a,hier ,hould ,ecure the Section, with twine thread vertically on the
left ,ide of the Section and affi- hi, ,ignature with date on the
denomination ,lip"
$he #oint (u,todian &fficer J 0uthori,ed &fficer ,hould affi- hi, ,ignature with
date on the denomination ,lip, after en,uring the correctne,, of the Section,
a, to the number of note,"
0ll currency note, that cannot be i,,ued to public are to be remitted to our
(urrency (he,tJlocal branch of %7IJS7I or any other 5ationali,ed 7an at the
earlie,t"
0fter tallied pa,, $& I (& entrie, under hi, I+"
0fter the entrie, are pa,,ed1 he ,hould verify hi, $eller !roof to en,ure that the
ca,h a, per the ,ame i, appearing a, 40G"
0fter en,uring thi,1 he ha, to handover the phy,ical ca,h to the :ain (a,hier
and obtain hi, ,ignature on rever,e of the debit ,lip ($&)"
:ain (a,hier on verification of the phy,ical ca,h received and the $eller !roof
of the Second (a,hier ,hould pa,, $I1 (I entrie, under hi, I+" 9e ,hould
prepare re,pective debit and credit ,lip,"
9ard copy of the (a,h (ount ,hould be ,igned by both the #oint (u,todian, and
filed in the file maintained for the purpo,e"
(a,h ,hould be carried to the (a,h Safe under the ,upervi,ion of the #oint
(u,todian,"
(a,h (including bo- containing Shroff=, (a,h) along with the (a,h (ount Dile
and +ouble 8oc %egi,ter ,hould be ept in,ide the (a,h Safe and the ,afe i,
to be loced by both the #oint (u,todian,"
0t the beginning of the ne-t day1 #oint (u,todian &fficer ,hould verify to en,ure
that the (a,h 7alance a, per the previou, day=, )eneral 8edger
(3@01010001) and (a,h (ount are tallying"
+URPR)+E =ER)F)CAT)ON OF CA+9 1/ RO
&nce a quarter the %9 L &!S I I$ ,hall arrange for ,urpri,e verification of
33
ca,h by de,ignating an officer from ,ome other on behalf of %& nearby
branch to verify the ca,h and ,ubmit the report" $he report ,hall be the (a,h
count report printed from the ,y,tem and duly ,igned by the #oint cu,todian,
and counter,igned by the vi,iting officer certifying the correctne,, of
phy,ical ca,h with that in the report" $he vi,iting officer ,hall al,o ,ubmit a
,eparate report for any di,crepancy or other deviation, that require, the
attention of the controlling authoritie,"
CA+9 RE()TTANCE+
(arrying of ca,h from one branch to another branch J another ban or wherever
prior approval i, there1 carrying of ca,h by the branch ,taff from the branch
to a cu,tomer=, bu,ine,, placeJoffice and vice ver,a1 i, nown a, (a,h
%emittance"
)enerally1 the need for ca,h remittance ari,e, when<
a" 0 branch i, having ca,h in e-ce,, of it, normal day to day
requirement, and beyond the (a,h %etention 8imit fi-ed for the
branch
b" 0 branch i, in need of ca,h
c" 0 cu,tomer reque,t, for the ,ame a, per the previou, arrangement
d" It i, a ,ecurity threat to maintain huge ca,h balance, at the branch
$he branch intending to di,po,e ,urplu, ca,h J ,upplying the ca,h i, called a,
H%emitting 7ranch= and the branch or other ban receiving the ca,h i, called
a, H%eceiving 7ranchJ7an="
In centre, where more than one branch of our ban i, functioning1 the
controlling %egional 9ead L &!S I I$ ,hall identify one of the branche, for
the purpo,e of ca,h maintenance called (a,h !ooling (entre (7ranch)" 0ll
other branche, ,hall normally either remit or receive ca,h only from the (a,h
!ooling (entre (7ranch)
BA)T OR &ECOD (ONED
7ranche, ,hould eep a certain ,um of money of u,ed1 old and i,,uable, note,
(but not ,oiled) of higher denomination both in the ca,h ,afe and with the
ca,hier in the drawer of the ca,h counter during counter hour," $he
3>
di,tinctive number, of the,e note, ,hould be noted down ,eparately on a
,heet of paper in duplicate1 duly ,igned by the (a,hier1 (a,h &fficer and
7ranch 9ead" &ne copy of it will be with the (a,h &fficer and the other with
the 7ranch 9ead"
$hi, money ,hould not be u,ed in the regular cour,e ,o that in ca,e of hold2up J
dacoity J robbery J theft1 the ,tolen money include, thi, money al,o"
$he ,erial number, of the,e (urrency 5ote, ,hould be mentioned in the report
to be ,ubmitted to the !olice whereby they will be in a po,ition to trac
down the culprit, who try to put thi, money into circulation"
$hi, bait money ,hould be changed once in three month,"
$hi, money ,hould not be ept in envelope or di,played prominently or
con,picuou,ly" It ,hould be ept a, normal i,,uing ca,h lying with the
ca,hier
!.C C%)ENT AN& C)F
+tandard Oerati-e Procedure8 B+OPC for Kno4 Dour Cu8to.er BKDCC
nor.8
&OCU(ENTAT)ON
$he ey requirement, under documentation are obtaining a duly completed
account opening form1 cu,tomer information form1 ,tandard document, for
individualJnon2individual account, and nece,,ary ,upporting document, for
!roof of Identity1 !roof of 0ddre,, and Signature !roof"
$he procedure, to be followed are a, follow,<
Step 1
1" $he cu,tomer i, required to complete the 0ccount &pening form (0&D) and
the (u,tomer Information Dorm ((ID) wherein detail, on the cu,tomer=,
bacground and facilitie, opted by the cu,tomer are recorded" 0ll field, in
the 0&D and (ID are mandatory and ,hould be completed in all re,pect,"
Step 2
1" $he detail, furni,hed in the 0&D and (ID ha, to be ,upported by the !roof of
Identity (!&I)1 !roof of 0ddre,, (!&0) and Signature !roof, (S!) of the
account holder,"
Step 3
1" $he cu,tomer=, photograph, ,hould be affi-ed on the 0&D and (ID" $he
35
cu,tomer ,hould ,ign acro,, hi, photograph whereby a part of the ,ignature
i, on the photograph and a part on the 0&D J (ID"
3" 7ranche, ,hould obtain late,t photograph, of the depo,itor, J all account
holder, at the time of opening of new account, under all categorie, of
depo,it,1 including term depo,it,"
3" $he 7ranch 9eadJ0uthori,ed &fficer ,hould atte,t the photograph under hi,
official ,ealJbranch round ,eal near the place where the ,ame i, affi-ed1 duly
mentioning hi, ,pecimen ,ignature number"
Step 4
1" $he initial depo,it ,hould be collected from the cu,tomer either in the form
of ca,h or cheque"
PAN =erification3
$he !05 number provided by the cu,tomer ha, to be checed from the Income
$a- 1the web,ite for correctne,, and authenticity by the branch ,ourcing the
account"
CU+TO(ER &UE &)%)'ENCE
&n ,ati,factory completion of the documentation1 the S: J+' of the branch
,hould perform due diligence on the cu,tomer "
$he due diligence may be performed in the form of a per,onal interview1 vi,it to
cu,tomer=, addre,,1 conducting enquirie, over telephone or any other
appropriate method to verify the bacground of the cu,tomer and
*7&Jrepre,entative,"
+O%E PROPR)ETARD CONCERN+
0 ,ole proprietor,hip i, an unincorporated bu,ine,, that i, owned by one
individual"
$he per,on owning the bu,ine,, i, called the 4!roprietor J Sole !roprietorG
$he liabilitie, of the bu,ine,, are al,o the per,onal liability of the owner"
In ca,e the firm ha, not obtained !051 the !05 of the Sole !roprietor mu,t be
indicated in the relevant column, in (ID"

PARTENER+9)P F)R(+
3@
!artner,hip i, the re,ult of an agreement between per,on, and it, partner,
repre,ent the firm" 0ll partner, are .ointly and ,everally liable for the due,
of the firm and the liability of each partner i, unlimited" $he per,onal
a,,et, of partner, can be utili/ed J attached for recovery of due, of the
partner,hip firm"
0 partner cannot endor,e a cheque favouring the firm in hi, own name for
credit to hi, per,onal account"
%)()TE& CO(PAN)E+
$he (ompany i, ,eparate from it, member, and ,hareholder," $he e-i,tence
of a company i, not affected by the death1 in,olvency1 lunacy etc" of it,
member, or ,hareholder,"
Precaution8 to 1e taken3
(a,h withdrawal, ,hould be allowed again,t bearer cheque drawn in favour
of 4&ur,elve,G and the authori/ed ,ignatory ,hould atte,t the ,ignature of
the company repre,entative on the bac of the cheque to receive ca,h on
behalf of the company" In ca,e of huge ca,h withdrawal,1 branch official,
,hould a,certain the rea,on and ,ati,fy them,elve, of the rea,on"
(a,h ,hould not be paid again,t cheque, drawn in favour of the (ompany"
(ID of the company and al,o director, and authori/ed ,ignatorie, ,hould be
obtained for opening of account in !rofile"
)NTRO&UCT)ON
1" (u,tomer Information Dorm ((ID) i, a document that provide, the detail,
of the pro,pective cu,tomer who i, entering into a baning relation,hip
with the ban"
3" 'ach (ID ,hall have di,tinct bar code number that ,hall be (u,tomer
identity number for all baning relation,hip of the pro,pective cu,tomer"
3" 7ar code i, only for aJc proce,,ing and doe, not relate to cu,tomer identity
3E
number for baning relation,hip"
'uideline8
1" (ID i, a common form for all type, of cu,tomer, and the ,ame ha, to be
obtained for all type, of cu,tomer, who prefer to have baning
relation,hip with the ban either for a liability product or an a,,et
product"
3" It ,hould be en,ured that all relevant data for the cu,tomer a, required are
properly filled in by the cu,tomer"
3" (ID i, the primary document that provide, cu,tomer information to the
ban and the document, required i, obtained for the ,pecific cu,tomer"
>" In ca,e of .oint account,1 (ID ha, to be obtained for all the .oint account
holder,"
5" In addition to the (ID for the firm1 in ca,e of !artner,hip firm,1 (ID of all
partner, whether authori,ed to operate or not ,hould be obtained"
@" In addition to the (ID for the firm1 in ca,e of non2 individual account,
other than partner,hip account,1 (ID ha, to be obtained for all per,on,
who are authori,ed to operate the account"
E" 'n,ure that the cu,tomer enter, the data in capital letter, only and blac
in i, u,ed to fill in the detail,"
C" &nce the duly completed (ID i, received1 it ,hould be checed for
completene,, and ,ignature of the pro,pective cu,tomer"
9" 7ranch ,hould en,ure to mae enquirie, and complete the portion of the
(ID that are meant to completed by the branch"
10" $he branch ,hould call for any additional detail, required from the
cu,tomer and provide proper a,,e,,ment of cu,tomer=, ,tanding"
11"7ranch ,hould en,ure to conduct due diligence and confirm the ,ame"
13"&nce the due diligence i, completed the official, conducting the due
diligence and enquiry ,hould ,ign confirming the ,ame"
13"(&!S ,hall categori,e the account ba,ed on the available information and
activate the account"
1>"0n unique identification number i, allotted to each cu,tomer in the
!rofile Sy,tem"
15"(ID i, for the cu,tomer" $he (ID number i, common to each cu,tomer for
variou, account, in hi, name either ,ingly or .ointly with another per,on"
9ence1 any number of account, for the ,ame cu,tomer can be lined to
the (ID and there i, no nece,,ary for obtaining (ID from the cu,tomer for
opening ,ub,equent account, once the relation,hip i, e,tabli,hed"
1@"In !rofile ,y,tem1 the cu,tomer information i, held a, a ,eparate file in
the ,y,tem1 which i, utili/ed by the 7ranche, for opening account, of
different type, for the ,ame cu,tomer at any of the 7ranche,"
1E" &pening of a (ID i, a prerequi,ite for opening a cu,tomer account in the
3C
!rofile Sy,tem"
Cu8to.er identification
In !rofile ,y,tem1 cu,tomer i, identified by the (ID number generated by the
,y,tem" $hi, number i, unique acro,, the ban and any branch can acce,,
the cu,tomer information by u,ing the (ID number"
&etail8 a-aila1le in C)F
M $he new (u,tomer Information Dile ((ID) i, a numbered document1 which i,
al,o bar coded" $hi, i, done for ea,y retrieval at (&!S and for tracing
purpo,e, only"
M $he new (u,tomer Information Dile i, to be u,ed for all product, in the 7an1
including loan product, e-cept (on,umer finance loan, booed in 8end
,phere application"
M $he new (ID ha, been bar2coded and numbered
M If the cu,tomer i, an individual1 the fir,t ,ection with the ,ub heading
4(u,tomer +etail, L IndividualG need, to be completed and the ,econd
portion 4(u,tomer +etail, L 5on Individual,G need, to be ,truc off"
M Bhere the (u,tomer i, not an individual1 $he ,econd ,ection with the ,ub
heading 4(u,tomer +etail, L 5on Individual,G to be completed and the fir,t
,ection 4(u,tomer +etail, L IndividualG mu,t be ,truc off"
M !hotograph of the (u,tomer to be affi-ed and the (u,tomer ha, to ,ign acro,,
the photograph and the form"
M (u,tomer ha, to ,ign a ,econd time in the bo- provided for ,ignature .u,t
below !hotograph"
M If the (u,tomer doe, not wi,h to be di,turbed by the ban for product
promotion,1 plea,e en,ure that the cu,tomer ,elect, the 4+o not (allG option"
M In the addre,, field1 for 5%I=,1 one addre,, provided mu,t be that of the
foreign addre,,"
M :andatory for Individual 7orrowal 0ccount, L 0ll the individual borrower,
need to provide the information required in thi, ,ection" $he )%I+ I+ need,
to be mentioned for all 5ucleu, application cu,tomer,"
M +eclaration by the (u,tomer L 0ll cu,tomer, ,hould ,ign the declaration for
having provided the correct data"
M *nder ,ection 9 L Dor &ffice *,e only (7ranch u,e) thi, information ,hould be
completed ba,ed on the per,onal interaction with the cu,tomer"
M *nder ,ection 10 L 4Dor 7ac &ffice u,e onlyG (&!S J (0!* will complete
thi, ,ection"
&i8creanc/ 9andling3
$he di,crepancie, if any1 will be ho,ted on Intranet for the branche, to tae
rectification ,tep, and re,ubmit to %+I& within E day," In ca,e1 branche, do not
39
attend to ,uch di,crepancie, in (%D, within E day,1 %+I& will not effect the
change," 7ranche, have to ,ubmit a fre,h (%D"
6.C %oan8 and Ad-ance8
7u,ine,, 7aning i, the core activity of any ban" 9ere1 at I5) the 7u,ine,,
7aning wa, further bifurcated in two divi,ion, 1") 78$ and 3") 'merging
(orporate" $he bifurcation wa, on the ba,i, of amount of loan granted to the
borrower," $he 78$ divi,ion had a ,anction limit from 30 lac, to 3 (r" 0nd
above 3 (r" Sanction1 it wa, 'merging (orporate" :y learning wa,
con,trained to 78$"
S&+ 2 78$ (Secured &ver2draft L 7an 8oan and $rade) provide, nece,,ary
Boring (apital and $erm loan, J (ompo,ite loan, to the Small and :edium
'nterpri,e, engaged in $rading1 Small 7u,ine,,e, and Service activitie, with
,implified procedure, J proce,,e, J apprai,al and at conce,,ional pricing"
$hi, product doe, not cover manufacturing activitie, including SSI unit,"
$he ma-imum e-po,ure under thi, product i, capped at I5% 300 lah, per
borrower"
$he ey factor, con,idered for the credit deci,ion under thi, product will be
a" $rac %ecordL !romoter ,hould have bacground e-perience of at
lea,t 3 year, to con,ider the e-po,ure" 9owever1 ,plitting of
account, among family member, or ,tarting of new unit, in ,ame
line of bu,ine,, to avail loan, under the ,cheme i, not permi,,ible"
b" 0cceptable level of trade activity and it, con,i,tency1
c" :aret reputation of the borrower1
d" 7orrower=, ,tae in the bu,ine,,1
e" 7aning tran,action, in the pa,t1
f" 0dequate ,ecuritie, for the propo,ed e-po,ure
$he main ob.ective of the product i, to enable the 7an to build a qualitative
a,,et boo and provide the cu,tomer finance with attractive rate of intere,t
and timely finance with minimum difficulty"
Acceta1le age grou
>0
$he age of the individual, J proprietor, J partner, J director, ,hould not be
below 31 year, and above @5 year," In ca,e of partner,hip, J companie,1 the
loan can be con,idered if any one of the main partner, J director, i, above 31
year, or below @5 year,"
&ue &iligence
1" $he due diligence of the new client, ,hould be conducted to e,tabli,h the
genuinene,, of cu,tomer=, bacground1 bu,ine,,1 identity etc" by collecting
N
a" (I7I8 report on the proprietor1 partner1 director1
b" !05 copy of partner J firm J company
c" I$% of firm J company
d" Service ta- regi,tration certificate of firm J company if applicable
e" Sale, ta- J 60$ regi,tration certificate
f" 60$ return copie, J a,,e,,ment order,
g" ?A( of the third party where third party property i, mortgaged
Puro8e of the %oan
1" $he purpo,e of the loan ,hould be ,trictly for bu,ine,, purpo,e, for woring
capital or acquiring a,,et, and not to be utili/ed for unproductive J
,peculative purpo,e,"
3" $he facilitie, are to be directly made available to the bu,ine,, unit and not to
the proprietor J partner, J director, for the purpo,e of inve,ting el,ewhere"
3" 0, ,uch1 facilitie, ,anctioned ,hould be reflected in the 7alance Sheet of the
borrowing entity"
>" *nder no circum,tance,1 per,onal loan, of any ind ,hould be con,idered
under thi, ,cheme"
>1
5" Bhile following 78$ norm, ,crupulou,ly1 the normal credit prudence ha, to
be e-erci,ed while con,idering the limit, be,ide, en,uring that the capital in
the bu,ine,, and the limit, approved are utili/ed for approved bu,ine,,
purpo,e only"
8imit, are to be con,idered in tune with the relative level of activity and
tran,action, and not on the ba,i, of collateral,"
NATURE OF FAC)%)T)E+
Fund Ba8ed %i.it8 G
1" $erm 8oan,
3" (ompo,ite 8oan, covering both Boring (apital a, well a, $erm 8oan"
'-i,ting &verdraft 0ccount, may al,o be con,idered for conver,ion a, $erm
8oan,
3" (heque purcha,e J 7ill purcha,e limit,
Non Fund %i.it8 G
1" 7an )uarantee, favoring )ovt" J Oua,i )ovt" bodie,1 !ublic Sector
*ndertaing, J reputed !ublic 8imited (ompanie, who ,upply good, to our
borrower,
3" !erformance a, well a, Dinancial )uarantee, are permitted"
3" )uarantee, are to be i,,ued in approved 7) format, only"
>" :a-imum period of 7) i, 3 year, including the claim period"
5" Inland 8etter of (redit (+0290 day, J +!) facility can be ,anctioned within
the overall limit1 ,ub.ect to 30F margin"
>3
@" Solvency (ertificate, to the (ontractor, who have availed credit facilitie,
under 78$ to the e-tent of 100F net worth a, per the late,t financial
,tatement, can be i,,ued by following the e-tant guideline," I,,uing ,uch
certificate,1 however doe, not add to the credit e-po,ure"
HUANTU( OF %OAN
For +ecured O-erdraft81 the e-po,ure should be lower of the following
Ie,cet for 'old & Je4eller/ trader8J<
1" 30F of )ro,, !ro.ected Sale, other than (ommi,,ion 0gent, PorQ
3" 3 time, of the promoter,= 5et &wned Dund, in the bu,ine,,"
3" Dor computation of 5et &wned Dund, (5&D)1 eligible Oua,i (apital
component deployed in the bu,ine,, on a long term ba,i, can be included"
>" 5&D R $5B S Subordinated debt P*S8 of promoter,Q L 5on2bu,ine,,
related inve,tment,1 loan, I advance, and mi,cellaneou, item,
5" &ut of promoter,= 5et owned fund,1 at lea,t 35F ,hould be by way of $5B"

+irect enquirie, ,hould al,o be made with the ,upplier, of the equipment, J
machinerie, J material, regarding the co,t, of variou, input,1 to en,ure their
correctne,,"
B!C Other )88ue83
1" 7orrower ,hould deal e-clu,ively with our 7an1 a, their S&8' 705?'%S1
and route their tran,action, through u," 9owever1 in e-ceptional ca,e,1
,anctioning authority may permit to maintain current account, with other
7an,"
3" 7orrower ,hould have nece,,ary licen,e, on hand to run the bu,ine,,"
>" Stoc, and 7oo +ebt, to be hypothecated to the 7an"
5" In,urance of the propertie, offered a, ,ecurity"
@" Stoc, to be in,ured
>3
E" 7ranch ,hould get the ,ecuritie, valued from the 7an=, approved valuer and
al,o obtain legal opinion and a,certain their genuinene,," 7ranche, ,hould
,ati,fy about their maretability"
C" In ca,e of tae over account, branch ,hould en,ure that the account ha, no
overdue, and the operation, in the account are ,ati,factory and i, a ,tandard
account" 7ranch ,hould obtain !I( opinion from the e-i,ting baner before
relea,ing the limit," In ca,e where $he 7an are not able to obtain !I(
opinion1 the ,anctioning authority could waive the ,ame"
9" Intere,t on the limit, to be collected on monthly ba,i, and in ca,e of $erm
8oan, recovery through ':I,"
11" 0&+, to be obtained once in 3 year, (fir,t 0&+ to be within 3 year, from
the date of di,bur,al)"
13" (ompul,ory regi,tration of partner,hip firm i, waived for loan, ,anctioned
upto I5% 35 lah, baced by collateral ,ecuritie, of not le,, than 135F1
,ub.ect to other ,anction condition, being complied with"
B:C Other aer8 reKuired fro. the cu8to.er83
1" (opy of the late,t !artner,hip +eed J :emorandum of 0,,o" and 0rticle, of
0,,ociation"
3" Smaller *nit, to ,ubmit their financial ,tatement, J pro.ection, duly ,igned by
the promoter,
3" (ertified copie, 0ccount, and !ro.ected Dinancial, in re,pect of bu,ine,,
unit,
>" Dorm 5o">E9J>C0 0,,et, and 8iabilitie, ,tatement, of the !romoter, and
)uarantor,"
5" Dorm 5o"311 for the !ropertie, offered a, ,ecurity"
@" &ther 7an=, ,anction copie, in ca,e of tae over account,"
E" 8ate,t 0vailable Income $a- J Sale, $a- %eturn, of the unit and promoter,
wherever applicable"
>>
+ECUR)TD
Pri.ar/3
9ypothecation of the Stoc, J 7oo +ebt, J 0,,et, financed
Collateral3
EKuita1le (ortgage
1" 'quitable :ortgage of the Immovable 8anded !ropertie,1 (other than
0gricultural
!ropertie,)1 ,ituated in :etro J *rban J Semi *rban area,1 in ,uch a way
that
135F of the limit ,anctioned i, covered"
RealiAa1le Ihighl/ liKuidJ 8ecuritie8
1" If ea,ily reali/able Phighly liquidQ ,ecuritie, lie +epo,it, of our ban1
5S(=, which have come out of the loc2in2period (!aid up 6alue S
0ccrued Intere,t only ,hould be con,idered)1 8ife In,urance !olicie,
(Surrender 6alue) and )overnment Securitie, are offered a, collateral1
then the collateral cover could be 100F of the credit e-po,ure" $he,e
,ecuritie, are to be charged to the ban a, per the pre,cribed
documentation procedure,"
'UARANTOR+E'UARANTEE+3
1" !er,onal )uarantee of all the promoter, vi/"1 !artner, J +irector, J :ember,1
etc"
3" !er,onal )uarantee of all the !roperty &wner, taen a, ,ecurity a, per norm,
of the 7an"
$he client, have to e-clu,ively ban with u," 9owever1 permitted to maintain
account with other ban, for the rea,on, ,uch a, ,upplier, need1 I678 not
having branch at ,ome center,1 term loan, have been availed and !+(, mu,t
have been i,,ued1 credit card ,ale,1 trader, with huge ca,h receipt,
(e,pecially ,mall denomination currency) may be ,train on the 7ranch etc" In
>5
view of the above1 ,anctioning authority may permit to maintain current
account, with other 7an,"
0pplication (um !roce,, 5ote and Score (ard are to be u,ed a, per the
pre,cribed format, de,igned e-clu,ively for thi, product" Bhile the ,ame can
be u,ed for the limit, up to I5% 300 lah,1 for propo,al, above I5% 100
lah,1 the Dinancial Spread, i"e" 7a,ic data and (ommon ,i/e J Summary1
Dinancial ratio, have to be filled1 analy,ed and enclo,ed to the regular 78$
apprai,al note in place of financial performance in the enclo,ed 0pprai,al
5ote"
In ca,e of taeover of e-i,ting facilitie, from other ban1 the repayment trac
record ha, to be verified by collecting the ,tatement of account for a
minimum period of ,i- month,"
12. SWOT ANALYSIS
i
SB&$ analy,i, i, a ,imple framewor for generating ,trategic alternative, from
a ,ituation analy,i," $he SB&$ analy,i, i, u,eful when a very limited amount
of time i, available to addre,, a comple- ,trategic ,ituation"
$he SB&$ analy,i, cla,,ifie, the internal a,pect, of the company a, ,trength,
or the weane,,e, and the e-ternal ,ituational factor, a, opportunitie, or threat,"
Strength, can ,erve a, a foundation for building a competitive advantage1 and
the weane,,e, may hinder it" 7y under,tanding the,e four a,pect, of it,
,ituation1 a firm can better leverage it, ,trength,1 correct it, $he weane,,e,1
capitali/e on golden opportunitie,1 and deter potentially deva,tating threat,"
SB&$ help, a company to ,et it,elf for better and for wor,e" SB&$=, are a
mean, by which a company can better under,tand what it doe, very well and
where it, ,hortcoming, are"
+TREN'T9+
>@
1" In,tant !re2generated ?it (include, +ebit card1 cheque boo and 5et
7aning !I5)
3" 0$: pin number ,ecurity
3" (o2 operative Staff
>" !er,onali/ed Service, J +oor ,tep facilitie,
5" (a,h acce,, ,ervice, till 5<30pm
@" 8ocer facility
E" I5) 8ife Doundation (Social %e,pon,ibility)
C" I5) 8ife In,urance
9" '-perienced :anagement $eam
10"&n2,pot ,olution for any grievance, of employee,
$EAKNE++
1" 7ranch i, in re,idential area and hence not2,o2ea,y acce,, to corporate1
wherea, the ,ame i, turned into an opportunity by providing the door ,tep
,ervice, to the corporate lie chec pic upJca,h pic up and dedicated
relation,hip manager,"
3" :ore trained ,ale, e-ecutive,
3" 8e,, promotional 0ctivitie,J0dverti,ing
>" !aring Inconvenience
OPPORTUN)T)E+
1" )row our con,umer ba,e
3" &ffer home loan, and other con,umer a,,et product, to mae it a
complete product offering"
3" 0cqui,ition of account, of e-i,ting employee, of our competitor, (,ame a,
point 1)
>" $o come up with any *S! product"
5" +e,ignating ($eller counter1 (u,tomer (are NN")
@" $he weeend $raining in term, of analy,i, (cau,e, of unclo,ed call,) and
future plan,"
E" Survey
C" to leverage wide networ of branche,1 that are increa,ingly ,ale, and
,ervice oriented
>E
T9REAT
1" 9igh level of competition
3" 0 competitor ha, a new innovative product or ,ervice
BIBLIOGRAPHY:-

$e18ite83
www"wiipedia"com
www"ingvy,yaban"com
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i
Special Thanks to :
Mr. Gagandeep Ahuja Mr. Jithesh Martis
(Cluster Head) (HR Manager)
(ING Vysya Bank Ltd.) (ING Vysya Bank Ltd.)
Mr. Vijay Ramsinghani
(Branch Head)
(ING Vysya Bank Ltd.)