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Introduction about Banking Industries

Banking system is occupies an important place in a nations economy. A banking institution is absolutely necessary in a modern society. In other words the development is an inevitable precondition for the healthy rapid development of national economic structure. Banking institutions have contributed much in the development of developed countries of the world. It plays a pivotal role in the economic development of a country.In a society banking is as important as blood in human body. Banks contribute a lot in the development of agriculture, trade and industries.

1.1

Introduction of Bank
Since the banking activities were started in different periods in different countries there

is no unanimous view regarding the origin of the word bank. The word bank is said to have derived from the French word Blanco or Banc us or Basque which means a bench. In fact the early Jews in Lombardy transacted their banking business by sitting on benches when their business failed. The benches were broken and hence the word bankrupt came into vogue but, Macleod in his book Theory and practice of banking has expressed different view. According to him the moneychangers were never called Bunchier in the middle ages. So, this derivation may be a mere conjecture. The Indian Banking system has grown considerably in stature recent years, on geographical as well as functional basics, the increasing monetization of the economy with the spread of the banking habit in new areas and the anxiety of the central and state governments to extend cheaper organized credit to the weaker section of the society have made it possible to use the facilities at the disposal of scheduled commercial banks to meet short-term credit retirements on a scale larger than ever before. It is true that banking in those days largely means money lending & the complicated mechanism of modern banking was not known to them. The first bank in India though conservative was established from 1786 till today, the journey Indian Banking system can be segregated in to three distinct phases they are as mentioned below.
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Phase I: Phase II: Phase III:

Early phase from 1786 to 1969 of Indian banks Nationalization of Indian banks and up to 1991 prior to Indian banking sector reforms New phase of Indian banking system with the advent of Indian financial and banking sector Reforms after 1991

1.2 Definition of Bank and Banking

Bank
Bank or Banker means such an individual or a company which can accept the money available from the current accounts of the customers through the cheques or drafts written to him or it from time to time under the limitations as per the wishes of customers.
-

Herbt l. Hart

Bank means an institution which can perform an activity to give and receive the credits. - Japanese Banking Act,1927

Banking
Banking means the accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order, or otherwise. - Indian Banking Regulation Act Banking is an establishment which makes to individual, such advances of money as may be required & safely made to which individuals entrust money when not needed by them for use.

- walter leat

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1.3 Types of banks


Financial requirements in a modern economy are of a diverse nature, distinctive variety and large magnitude. Hence, different types of banks have been instituted to cater to the varying needs of the community. Banks in the organized sector may, however, be classified into the following major forms: 1) Commercial Banks 2) Co-operative Banks 3) Specialized Banks 4) Central Banks

1).Commercial Banks:
Commercial banks are joint stock companies dealing in money and credit. A commercial bank may defined as a financial institution that accepts chequable deposits of money from the public and also uses the money with it for lending. The most distinctive function of a commercial bank is that it accepts deposits called demand deposits from the public which are chequable, i.e., withdrawal by means of cheques. Its essential function is to make use of these deposits for lending to others. Commercial banks usually give short-term loans and advances. They occupy a dominant place in the money market. They, as a matter of fact, from the biggest component in the banking structure of any country.

2).Co-operative Banks:
Co-operative banks are a group of financial institutions organized under the provisions of the co-operative Societies Act of the states. These banks are essentially co-operative credit societies organized by members to meet their short-term and medium-term financial requirements. The main object of co-operative bank is to provide cheap credit to their members. They are based on the principals of self-reliance and mutual co-operation. The co-operative banking system in India is, however, small sized in comparison to the commercial banking system.

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3). Specialized Banks:


There are specialized forms of banks catering to some special needs with this unique nature of activities. These are, thus, foreign exchange banks, individual banks, industrial banks, development banks, land development banks, etc. Foreign exchange banks or simply exchange banks are meant primarily to finance the foreign trade of a country. They deal in foreign exchange business, buying and selling of foreign currencies, discounting, accepting and collecting foreign bills of exchange. They also do ordinary banking business such as acceptance of deposits and advancing of loans.

4). Central Banks:


A central bank is the apex financial institution in the banking and financial system of a country. It is regarded as the highest monetary authority in the country. It acts as the leader of the money market. It supervises controls and regulates the activities of the commercial banks. It is a service-oriented financial institution primarily concerned with the ordering, supervising regulating and development of the banking system in the country. As the central bank is able to influence monetary and credit conditions and financial developments in a country, it is charged with the responsibility of carrying out the monetary and credit policies.

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1.4 Structure of Banking in India


Indian banking system comprises of both following Bank.

Unorganized banking includes indigenous bankers and village moneylenders, caters to


the credit needs of a large number of persons especially in the country side.

Organized banking includes the followed


Reserve bank of India (central bank ) Commercial banks Development banks Exim banks Co-operative banks Regional rural banks Land development banks National Bank for agriculture and rural development (NABARD)

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STRUCTURE OF INDIAN BANKING SYSTEM

Organized

Unorganized

1. Licensed Creditors 2. Unlicensed Indigenous money lenders.

Reserve Bank of India

Commercial Bank

Co-operative Bank

Public Sector: 1. State Bank of

India 2. Subsidiaries of State Bank of India 3. Nationalized Indian Scheduled commercial Bank

Private Sector: 1. Branches of Banks In corporate outside India 2. Other Indian Scheduled commercial Bank 3. Non Scheduled Commercial Bank

1. State Cooperative Bank at State level 2. Central Cooperative Bank at District level 3. Rural primary Co-operative bank of village/Town level
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Prof. V. B. Shah Institute of Management

1.5 Role of Banks in Economic Development


Banks provide funds for business as well as personal needs of individuals. They play a significant role in the economy of a nation. It encourages savings habit amongst people and there by makes funds available for productive use. It acts as an intermediary between people having surplus money and those requiring money for various business activities. It facilitates business transactions through receipts and payments by cheque instead of currency. It provides loans and advances to businessmen for short term and long-term purposes. It also facilitates import export transactions. It helps in national development by providing credit to farmers, small-scale industries and self-employed people as well as to large business houses which lead to balanced economic development in the country. It helps in raising the standard of living of people in general by providing loans for purchase of consumer durable goods, houses, automobiles, etc.

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Indian Banking System


In Indian banking system can be roughly classified into three broad categories viz.

1. Commercial Banking Sector 2. Development Banking Sector 3. Co-operative Banking Sector

1. Commercial Banking Sector


Today the commercial banking system in India may be distinguished into:

A. Public Sector Banks


i. ii. iii. State Bank of India and its associate Banks called the State Bank group 20 Nationalized Banks Regional Rural Banks mainly sponsored by Public Sector Banks

B. Private sector Banks


i. ii. iii. iv. v. Old generation private Banks New generation private Banks Foreign Banks in India Scheduled Co-operative Banks Non- Scheduled Co-operative Banks

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2. Development Banking Sector


A. Industrial Finance Corporation of India (IFCI) B. Industrial Development Bank of India (IDBI) C. Industrial Credit and Investment Corporation of India (ICICI) D. Industrial Investment Bank of India (IIBI) E. Small Industries Development Bank Of India (SIDBI) F. National Banks for Agriculture and Rural Development (NABARD) G. Export Import Bank of India (EXIM)

3. Co-operative Banking Sector


The Co-operative Banking sector in India is divided into 4 components (Co-operative, Private, Foreign and Nationalize) A. State Co-operative Banks B. Central Co-operative Banks C. Urban Co-operative Banks D. Primary Agriculture Credit Societies E. Land Development Banks F. Primary Agriculture Development Banks G. Primary Land Development Banks H. State Land Development Banks

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1.6 Introduction about of co-operative bank


Co-operative banks were first introduced India in 1904 by passing co-operative credit society act. This firm of organization was intended to the agriculturists and artisans coming together and educating them in the case of credit and inculcating the habit of saving cooperation and self-help. The distinguishing feature of Co-operative banks is the absence of profit motive. Co-operative banks are very helpful to meet the requirements of small farmers, artisans, etc. In India, Co-operative banks have been pioneers in mobilizing rural deposits. Today however, the Co-operative banks have putting more weight on their lending activities than on deposit mobilization. All the Co-operative credit societies were brought under the preview of the banking companies act 1966. The RBI has been vested with the power and controls the Cooperative banks. The government of India has encouraged the Co-operative movement in banking. Therefore, Co-operative banks are developed from one place establishment to district level, state level, state level, and also the central level.They receive all kind of deposits and make them available as lend able fund to its members.

Definition
Peoples Co-operative Banks, defended a co-operative bank, as a mutual society formed, composed, and governed by working people themselves, for encouraging regular saving and granting small loans on easy terms of interest and repayment.

- Mr. Devine

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Co-operative banking has a three-tier structure as under:

State Co-operative Bank Central Co-operative Bank Primary Credit Societies

Primary credit societies


A central Co-operative credit society can be started with ten or more person, normally belonging to a village. So that the primary credit society is also known as the village Co-operative society was expected to attract deposits from among the well-to-do members and non- members of the village. It should give loan and advances to needy members mainly out of these deposits.

Important functions of PACS


To provide short term and medium term credits to farmers To supply inputs needed by farmers for farming To supply essential commodities To supervise use of credit and recover the same punctually To encourage thrift habit among the members To associate itself with the programmers of economic welfare of the people.

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Central Co-operative bank


The central Co-operative bank is federations of primary credit society in a specified area, normally a district and is usually located at the district. The central Co-operative banks have been under taking normal commercial banking business also such as attracting deposits from the general public and lending to the needy against proper securities.

Important functions of DCCBs


To meet the credit requirements of primary level societies for production, supply and marketing process. To act as the balancing center for adjusting the surplus and deficiency of capital of primary credit societies. To undertake supply of seeds, fertilizers, and other inputs which are likely to be used by farmers. To supervise, inspect the primary credit societies, which comes its jurisdiction. To provide leadership to all primary credit societies.

State Co-operative bank


State Co-operative bank especially co-ordinates the activities of district, central Co-operative banks and dive them required guidance. State Co-operative bank is a chain between co-operative activity and countrys money market.

Important functions of SCBs


It acts as Bankers bank for District Central Co-operative Banks. It connects Co-operative Credit Societies/Banks with money market in the country. It supervises controls and renders guidance to the DCCBs. It performs functions like issuing drafts, cheques and letters of credit etc. It assists the state government in drawing up Co-operative, development related plans for state.

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Objectives of Co-operative Banks


The American Co-operator Herbert Myrick in his book Co-operative Finance mentioned the following purposes of Co-operative banks:-

To induce the people to join it as members and shareholders, if only in a small


way labour or effort.

To encourage them to save money and deposit their saving in their own bank
capital accumulated.

To safely loan these savings and the banks credit to the banks members or
customers within the local territory of the bank, for wisely productive purposes wise use.

To enable the people themselves to create efficient management of their bank.

Principles
The co-operative principles are guidelines by which co-operative banks put their values in to practice.

1). Voluntary and Open Membership:The co-operative banks are voluntary organizations open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

2). Democratic Member Control:The co-operative bank do their member, who actively participate in setting their policies and making decisions, men and women serving control democratic organization, as elected representatives are accountable to the membership. In primary co-operative members have equal voting rights and co-operative at other level are also organized in a democratic manner.

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3). Members Economic Participation:contribute equality and democratically control the capital of their co-operative. At least part of the capital is usually the common Property of the co-operative. Members usually receive limited compensation if any on capital subscribed as condition of membership. Members allocate surpluses for any of the following purpose: developing their co-operative, possibly by setting up reserves, part of which at least Would be indivisible, benefiting member in proportions to their transactions with the cooperative and supporting other activities approved by the membership.

4). Autonomy and Independence:Co-operatives are autonomous, self-help organization controlled by their members. If they enter into agreements with other organization, including government to raise capital. For external sources, they do so in terms that ensure democratic control by their members and maintain their co-operative autonomy.

5). Education, Training and Information;Co-operative provides education and training for their members, elected representatives managers and employee. So that they can contribute effectively to the development of their cooperatives. They inform the general public-particularly young people and opinion leaders about the nature and benefits of corporation.

6). Co-operation among co-operatives:Co-operatives serve their members more effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.

7). Concern for community:Co-operatives work for the sustainable development of their communities through policies approved by their members.

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2.1 The Sutex Co-operative Bank Ltd.


The bank was started in 15th May 1972 with 270 members and 10,000-share capital and funds of Rs. 523315/- in the ground floor of The Surat Textile Market. After these, today it works in bank block Surat Textile Market. It was established by the chairman Mr. Surajram H. Bachakaniwala and vice-chairman late Mr. Ashabhai R. Patel and Late Mr. Bhupatlal R. Dholabhai (Regional Manager of DENA Bank), late Mr. Bhagwandas Lekhadiya, late Mr. Manilal Chevali, Mr. Manilal Kapadiya, Mr. Chaturbhai Tanawala, Mr. Mohanlal Nayak etc., First branch of the bank was established in 27th July 1986 at Station Road, Mavani Tower. It was inaugurated by a great sage revered Ghanshyam Charan Swamiji of Swaminarayan Temple.

In 1986, The SUTEX Co-operative Bank Ltd., gets wholetime membership in "Gujarat Urban Co-operative Bankers Federation".

In 1992-93, bank was purchased Hardware from NALCO Company and Software from Tryology Company and started online computerization in main branch. In 15th May 1996, bank was started festival of Rajat Jayanti. Mr. Surajram Bachackaniwala the chairman of the bank started it. In this year, bank's funds was Rs. 100 crore. Reserve Bank of India gave permission to bank to increase their functional areas from Surat, Bharuch, and Mumbai Municipal Corporation. In this year bank increase their branches and it

was at that time 11. At the time of Rajat Jayanti Festival, bank invites its all members, creditors, other staff members and also Mr. Fakirbhai Chauhan who was mayor at that time.

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In the event of banks Silver Jubilee year, The SUTEX Co-operative Bank Ltd., offers Rs. 50-lack donation to Sarvajanic Education Society for Textile Processing faculty. In this way bank fulfill its social responsibility.

The bank changes its name to "The SUTEX Co-operative Bank Ltd." and was registered in Multi State Co-operative Act-1984 in February 8, 1999.

In the year 2000-01, two new branches were established i.e. City Light branch and Salabatpura branch. All the credits of opening these branches goes to Mr. J.M.Nayak (C.E.O.) of the bank. In addition, bank organised to open branch in Mumbai.

The bank has 13 branches and 3 ATM (Automatic Tailor Machine) in various areas. The ATM machines are available on Rander Road Branch, Athwalines Chopati Branch and City Light Road Branch. In very few times, bank provides ATM service in Station Road Branch.

Special Features of Bank:1. It was started on 15th May 1972, as an urban co-operative bank. 2. Surat textile Market, ring road is its registered Office. 3. It has independent administrative office at parvat patia, Surat. 4. It is one of the co-operative banks in surat that has 13 branches in and around Surat. 5. All branches are computerized and better working condition. 6. Provide services to the all segment of society with special, emphasis on textile industries of Surat. 7. Locker and ATM facility are available at majority of the branches. 8. Special loan scheme for professional, different segment of industry and trade at lower rate of intQerest as compare to other co-operative bank. 9. Offered favorable rate of interest on various kinds of deposits. 10. It also gives donation for education purpose. Some examples are of Sarvajanik Education society. Also running BCA college in Amroli.

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11. Bank also rising to the occasion credit with in 24 hours to the flash flood affected in 1992. 12. In the start there were 272 shareholders and today there are 14,800 shareholders. 13. Registration under the Multi state bank Act by Indian government in the year 1999. 14. Advances of 81% to the priority sector. 15. Only recognize bank in non-scheduled co-operative bank that gives direct advances under T.U.F. scheme. 16. Reasonable rate of interest on loan for higher education.

"HELPS YOU LIVE BETTER"


2.2 Present Situation of The Sutex Co-operative Bank Ltd.
(Date: - 1st March 2011)

Name Registered no. Registered Office

: - "The SUTEX Co-operative Bank Ltd." : - 5033, Date:- 15th May, 1972. : - 2nd Floor, Bank Block, Surat Textile Market, Ring Road, Surat-2.

Administrative Office: - Surajram Bachkaniwala Bhavan, Near, Navjivan Circle, Udhna-Magdala Road, Surat-395017

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BRANCHES
The bank has 13 branches in Surat City at various areas as follows: -

Main Office: Surat Textile Market, Ring Road, Surat-395002.

Station Road: Meghani Mesons, Station Road, Surat-395003,

Gopipura Sona Faliya: Subhas Chowk, Gopipura, Surat-395001

Katargam: 163-B G.I.D.C., Katargam, Surat-395004.

Rander Road: Ashirwad Society, Rander, Surat-395009.

Varachha Road: Shreyas Diamond Center Varchha, Surat-395006.

Udhana Magdalla: Pashwanath Complex, Udhna Magdalla, Surat-395017

Athwalines: Anjana Salakha, Athwaliane, Surat-395001.

Parvat Patiya: First Floor, Surbhi Complex, Parvat Patiya, Surat-395210.

Kim pepodara: J.J. Complex Kim Charrasta, Surat-394111.

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Sachin G.I.D.C.:1008, G.I.D.C., Sachin, Surat-395230.

City light: Hirapanna Shopping Center, City Light, Surat-395007.

Salabatpura: Piperdi Sheri, Salabatpura, Surat-395003.

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2.3 Board of Directors: -

Mr. Kamal Vijay Tulshan Mr. Nirmal Kumar Vragelal Vakhariya Mr. Ravindra Bhupatlal Dholabhai Mr. Prabhatshih Fakirshih Solanki Mr. Nimeshbhai Surajram Bachakaniwala Mr. Jyotindra Bhagwandas Lekhadiya Mr. Chaturbhai Nagindas Singapuri Mr. Manharlal Ratilal Bachakaniwala Mr. Hasmukhlal Bhagwandas Mistry Mr. Sharadbhai Champakala Kapadiya Mr. Jitendra Maganlal Nayak Mr. Raj Manilal kapadiya Mr. Arunbhai brijemohan Kanodiya Mr. Kartik Upendra Hathivala Mr. Ashvin Jyantilal Deshi Mr. J. B. Shinde Mr. B. H. krak

Chairman Vice Chairman Hon. Director Hon. Director Hon. Director Director Director Director Director Director Director Director Director Director Director Chief Executive Officer Credit Manager

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2.4 Branch Manager

Mr. G.A. Patel Mr. M. S. Pauwala Mr. S. K. Mheta Mr. J. B. Janshali Mr. J.G. Pandya Mr. M. M. Patel Mr. L. M. Trivedi Mr. A.S. Joshi Mr. J. B. Trivedi Mr. C. N. Parmar Mr. R. K. Patel Mr. M. K. Oliyawala Mr. D. H. Patel Mr.S. H. Patel

Branch manager (Textile Market) Branch manager (Station) Branch manager (Gopipura) Branch manager (Katargam) Branch manager (Randel Road) Branch manager (Varachha) Branch manager (Udhna Magdala) Branch manager (Athvaliansh) Branch manager (Parvatpatiya) Branch manager (Sachin GIDC) Branch manager (Sitilite Road) Branch manager (Salabatpura) Branch manager (Pandesara) Branch manager (Saharadarvaja)

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2.5 Growth Rate


(Rs. in crore)
Particular Number of Members Share Capital Total Business Deposits Advances Working Capital Profits Gross NPA Business per Member Profit per Member Audit class Dividend 2007 14800 10 442 248.59 123.96 302.10 4.04 3.2% 2.01 0.0141 A 15% 2008 16353 11.38 563 349 213 406.44 4.09 2.86% 2.55 0.0185 A 15% 2009 18526 13.9 683 423 259.66 493.43 5.12 1.99% 3.09 0.232 A 15% 2010 19684 17.32 843.6 523.53 320.7 590.40 6.21 0.43% 3.83 0.0282 A 15% 2011 21200 20.54 1054 635.74 418.26 711.55 7.44 0.35% 4.83 0.0341 A 15%

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2.6 Organisation Structure of the bank:Chairman

Vice-Chairman

Managing Director

Board of Director

Manager /C.E.O.

Assistant Manager

Officer

Clerk

Peon

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3.1 Research Problem


The research study is based on Comparative study of loan and advances analysis of The Sutex co-operative bank in Surat city. The following banks are also under studied; The Akhandanad Co-operative Bank Ltd., The Sasvat Co-operative Bank Ltd.

As today the banking competition has been increased immensely in the present era, so here researcher has tried to know the performance of the banks loan and advances data only but my main focus is to analyze the sanction on loan, recovery of loan, overdue loan and doubtful loan of the banks.

3.2 Objectives of Study


"While selecting the project title 'Comparative study of Loans & Advances analysis' the main objective is to know the past and present loan and advances position. Some other objectives are as follows: To study different types of loans given by the bank. To study of sanction of loans give by the banks. To know the recovery, overdue loan and doubtful loans of all comparative banks. To study of interest rate on loan of different loan and also to know the loan amount given by the bank. To study the general procedure of loans and advances of the bank. The norms and conditions for sanctioning the loans are studied.. Some focus on the recovery procedure of the loans and advances of the bank.

3.3 Research Design


The analysis of the bank is done in which past data of loan and advances is use to interpret the current position of the bank. Descriptive research design will be used because of unfamiliar with the problem.

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3.4 Significance of study


A study help to know the how many sanction loan by the banks, compare this all the data with the other selected banks. And also know the present sanction condition of the banks. Also to know the recovery of loan, overdue loan, doubtful loan and also to know the how many loan amount given by the bank. A study also helps to know the rate of interest on loan, benefit to the customer, to know the general procedure of the loan, repayment system, loan amount, and compare this are all the information with the other co-operative banks working in surat city.

3.5 Reference period


6th January 2012 to 6th March 2012

3.6 Source of the data


The concerned subject is wide and broad in connection with the collection of data and for that various steps taken by me.

Primary Sources
Personal visit to the concerned banks. Discussion with the guide, opinion of the senior bankers. Personal discussion with the Bank Manager, regarding loan department of the banks.

Secondary Sources
Gathering of loan and advances pamphlet regarding the history of the said banks. Various banks magazines, journals, books and web sites available on net etc. . i.e. annual report of the said banks and information material

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3.7 Sampling Design


Population
All financial data related with the loan selected bank of surat city

Sampling Frame
Balance Sheet, Profit and loss account and loan pamphlet of the banks.

Sampling Period
Last five year

Sampling Techniques
Non Probability convince sampling

3.8 Limitation of the Study


If there are advantages of study then obviously there are limitation of that study also. So, some limitations of this study are: Time period for the study is limited as we have got two months for this project, but if we got more time than analysis can be much broad. There is also difficulty to get properly loan relevant information of comparative bank. This study majorly depends upon the secondary data Analyses of only three banks are done rather than more banks. Study is limited to local area of Surat.

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THEORITICAL FRAME WORK: 4.1 Introduction of Loans and Advances: Any amount borrowed or lent is called loan. If money is borrowed it is debt of business ands if loan is given, it is receivable for the business. Loan is a method of lending under which bank gives credit to a borrower for a fixed period and for a specific purpose. Loan are promises for future payment, they have to be repaid in periods beyond a year and are, therefore long term liabilities. In other wards "when a banker makes an advances in a lump sum which can not be paid wholly or partly and which the customer has permission to withdraw subsequently, it is called a loan." Profit is the pivot on which the entire business activity roates. Banking is essentially a business dealing with money and credit. Like every other business activity. Banks are profit oriented. A bank invests its funds in many ways to earn income. The bulk of its income is derived from loans and advances. Banks make loans and advances to traders, businessman and industrialist 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 lending 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. Many a time a borrower needs funds for fixed assets or non-respective type of activities and thus seeks money from the bank that is withdrawn in one lump sum. The loan amount is normally repaid in installments. Loan may be short-term, medium-term or long-term.

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Principles of sound lending:Traditionally, banks have been following three principles of lending viz., safety, liquidity and profitability. Banks in India have shouldered additional responsibility of fulfilling social obligations. Hence, the bank observes both the traditional and certain other principles.

1 Safety: A bank leads what it receives from the public as deposits. The success of the bank depends upon the confidence of the depositing public. Confidence could be infused in the depositors by investing the money in safe and sound securities. Safety depends upon (1) the security offered by the borrower, and (2) the repaying capacity and willingness of the debtor to repay the loan with interest. So the banker should ensure that the security offered are adequate and readily releasable and the borrower is a person of integrity good character and reputation.

2 liquidity: Liquidity refers to the ability of assets to convert into cash without loss within short time. The liabilities of a bank are repayable on demand or at short notice. To meet the demand of the depositors in time, the banks should keep its funds in liquid state. Money locked up in long term loans such as land, building, plants, machinery, etc., can not be received back in time and so less liquid.

3 Profitability: Like all other commercial institutions banks are run for profit. Even government owned banks are no exception to this. Banks earn profit to pay interest to depositors, declared dividends to shareholders, meet establishment charges and other expenses, provide for reserve and for bad and doubtful debts, depreciation, maintenance and improvements of property owned by the bank and sufficient resources to meet contingent loss. So profit is an essential consideration.

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4 Security: Customers may offer different kinds of securities viz., land, building, machinery, goods and raw materials to get advances. The securities of the customers are insurance and bankers can fall back upon than in times of necessity. Securities which could be marketed easily, quickly and without less should be preferred.

5 Purpose of the loans: Before sanctioning loans a banker should enquire about the purpose for which it is needed. Loans for undesirable activities such as speculation and hoarding should be discouraged. Banks readily allow borrowings for productive purposes. It is also equally important on the part of banks to insure that a loan is utilised for the proposed for which it is granted so that repayment will be prompt. Proposed of the loan has assumed a special significance in the present day concept of banking it is equally important to insure that the loan is utilised for the proposed for which it is a granted.

6 Sources of Repayment: Before giving financial accommodation, a banker should consider the source from which repayment is promised.

7 Diversification of risk: The security conciseness of a banker and the integrity of the borrower are not adequate factors to keep the bankers on safe side, what is more important is the diversification of risk. So that a bank should follow wise-policy for 'do not lay all the eggs in the same basket.' The bank must advance moderate sums to a large number of customers spread over a wide area and belonging to different industries.

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8 Receipt concept of sound lending: A sound credit is one where timely repayment is assumed. This largely depends on the earning power of the business units and the repaying capacity of the borrower. So great emphasis is laid on the productivity of the loan. Since the banks have shouldered an additional responsibility of keeping the tempo of development of the economy they should consider the productivity of loan as the chief criterion for advancing loan.

4.2(A) Types or Forms of advances: -

Bank offers different types of borrowing facilities to their customers. The credit facilities may be broadly classified into four types. 1> Loans, 2> Cash Credit System, 3> Overdraft, 4> Bills Purchased and Discounted.

These can be discussing in brief as follows.

1. LOANS:In case of loans, the banker advances a lump sum for a certain period at an agreed rate of interest. The entire amount is paid on an occasion either in cash or by credit in his current account, which he can draw at any time. The interest is charged for the full amount sanctioned whether he withdraws the money from his account or not. The loan may be repaid in installments or at the expiry of a certain period. The loan may be made with or without security. A loan once repaid in full or in part cannot be withdraw again by the customer. In case a borrower wants further loan, he has to arrange for a fresh loan.

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Loan may be a demand loan or a term loan. Demand loan is payable on demand. It is for a short period and usually granted to meet working capital needs of the borrower. Term loans may be medium term or long term loan. Medium term loans are granted for a period ranging from one year to five years for the purchased of vehicles, tractors, tools and equipment's. Long term loans are granted for capital expenditure such as purchase of land, construction of factory building, purchase of new machinery and modernization of plants etc.,

Advantages of Loan System: -

1> Financial discipline on the Borrower :As the time of repayment of the loan or its installments is fixed in advances, this system ensures a greater degree of self-discipline on the borrower as compared to the cash credit system.

2> Periodic Review of Local Account: Whenever any loan is granted or its renewal is sanctioned the banker gets an opportunity of automatically reviewing the loan account. Unsatisfactory loan accounts may be discontinued at the discretion of the banker.

3> Profitability:The system is comparatively simple. Interest accrues to the bank on the entire amount lent to a customer.

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Drawbacks/ Limitations: 1> Inflexibility: -Every time a loan is required, it is to be negotiated with the banker. To avoid it, borrowers may borrow in excess of their exact requirements to provide for any contingency.

2> Banks have not control over the use of funds borrowed by the customer. However, banks insist on hypothecation of the assets/ vehicle purchased with loan amount.

3> Though the loans are for fixed periods, but in practice they roll over, i.e., they are renewed frequently.

4> Loan documentation is more comprehensive as compared to each credit system.

4.2(B) Types of Loans: Banks grant loans for different periods- shorts, medium and long, for different propose. Broadly, the loans granted by banks are classified follows:-

BANK LOANS

Short Term Loans

Medium& Long Terms Loans

Bridge Composite Loans

Consumption Loans

Page | 32 Prof. V. B. Shah Institute of Management

1 Short term loans: Short-term loans are granted to meet the working capital needs of the borrowers. These loans are granted against the security of tangible assets mainly the movable asset like goods and commodity shares, debentures etc. Since April 1995 RBI has made it mandatory for the banks to grant a portion of bank credit to big customers in the form of loans, which may be for various maturities. The reserve bank has also permitted the banks to roll over such loans, i.e. to extend the loan for another period at the expiry of the tenor of the first loan.

Term loans: Term loans are given for medical and loan periods, and loans are used for acquiring

fixed assets or for modernization and expansion of existing units. They may also be used for working capital requirements. An important feature of term loans is the felt that they are repayable in yearly or half-yearly installments over a period of time. Payment is to be made according to a specified schedule, extending up to 15 years, which imposes a sort of financial discipline on the borrowing concern. The amortization gradually starts 2 to 3 years after the sanction of the loan. Together with the normal interest, a commitment charge of one per cent per annum is also levied on the utilized portion of loan. The basic point in term lending is that the borrower should utilize the amount in such a way as to repay the loan as well as the interest

Accruing thereon from the anticipated income earned by the use of that loan itself. This is the reason why before allowing a term credit, the banker evaluates the technical and economics viability of the project for which the loan is sought and also the repaying capacity of the borrowing concern.

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3(a) Bridge loans:


Bridge loans are essentially short-term loans, which are granted to industrial undertaking to meet their urgent and essential needs during the period when formalities for availing of the term loans sanctioned by financial institutions are being fulfilled or necessary steps are being taken to raise the capital market. These loans are granted by financial institutions themselves and are automatically repaid out of amount of the term loans or the funds raised in the capital market.

In April 1995 RBI banned bridge loans granted by banks and bank permitted the banks to sanction bridge loans/ interim finance against commitment mad by a financial institution faces temporary liquidity constraint subject to the following conditions:

1. The prior consent of the other bank / financial institution which has sanctioned a term loan must be obtained. 2. The term lending bank / financial institution must give commitment to permit the amount of the term to the bank concerned. 3. The period of such bridge loans should not exceed four months. 4. No extension of time for repayment of bridge loan will be allowed. 5. To ensure that bridge loan sanctioned is utilized for the purpose for which the term loans has been sanctioned.

3(b) Composite loans:When a loan is granted both for buying capital assets and for working capital purposes, it is called a composite loan. Such loans are usually granted to small borrowers, such as artisans, farmers, small industries etc.

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4 Consumption loan:
Though normally banks provide loans for productive purposes only, but as an exception loans are also granted on a limited scale to meet the medical needs or the educational expenses or expenses relating to marriages and other social ceremonies etc. of the needy persons. Such loans are called consumption loans.

Classification of loans and advances: secured and unsecured:


The loans granted by banks are broadly classified into two categories:

Secured loans. Unsecured loans.

According to section 5(a) of banking regulation act, 1949, a secured loan or advances means a loan or advances made on the security of assets, the market value0 of which is not at any time less than the amount of such loan or advances, and unsecured loan or advances means a loan or advances not so secured. Thus the distinguishing of the secured loan or advances are as follows:

1. The loan must be made on the security of tangible assets, like goods and commodities, land and buildings, gold and silver, corporate and government securities etc. A charge on any such assets offered as security must be created in favor of the banker.

2. The market value of such security must not be less than the amount of the loan at any time till the loan is repaid. If the farmer falls below the latter because of decline in the market prices, the loan is considering as partly secured.

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The distinction between secured and unsecured loans is made on the basis of legal title or charge created in favour of the lender. Under the traditional principles of lending, the borrowing capacity of the person is judged on the basis of the tangible assets in the possession of the borrower, i.e. the larger is the creditworthiness of a borrower, if larger is the value of his tangible assets. However, it should not be understood that unsecured loans, also called clean loans and advances, are granted to persons without observing the abovementioned criterion of creditworthiness. In fact, unsecured loans are also granted to persons of sufficient means, possessing tangible assets and with sound financial position, but no charge or right is created on any such assets of the borrower in favour of the banker.

In case of secured advances, the legal status of the banker is that of a secured creditor; he gets the first and absolute right to recover his dues out of the sale proceeds of the assets over which a charge is created in favour of the banker.

1> CASH CREDIT SYSTEM: Cash credit is one of the most important methods of lending in India. Under this method, the banker fixes a limit for a customer, called the cash credit limit. The limit is generally specified after taking into account the important features of the borrowing concern, for example, production, sales, inventory, past credit limits etc. The customer is allowed to withdraw money from cash credit account according to his requirements. Similarly he may deposit money in the account as and when surplus funds are available with him. The cash credit account is, thus, an active and running account to which deposits and withdraws may be effected frequently. But the customer has to provide tangible assets as security for the amount borrowed from the banker. The interest is charged on the actual amount utilised by the customer and it is calculated only for the period of actual utilisation only.

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Advantages of Cash Credit System: -

1>Flexibility: The borrower need not keep their surplus funds idle with themselves. They can recycle the funds quite efficiently and can minimise interest charges by depositing all cash accruals in the bank account and thus keeping the drawls at the minimum level. The system thus ensures lesser cost of funds to the borrowers and better turnover of mind for the banks.

2> Operative convenience: Banks have to maintain one account for all the transactions of a customer. The repetitive documentation can be avoided.

Weakness of the system: -

Fixation of Credit limits: The cash credit limits are prescribed once in a year. Hence it gives rise to the practice of fixing large limits than is required for most part of the year. The borrowers misutilise the unutilized gap in times of credit restraint.

Bank's inability to verify the end use of funds: Under this system the stress in on security aspect. Hence there is no conscious effort on the part of banks to verify the end use of funds. Funds are diverted, without banker's knowledge, to unapproved purposes.

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Lack of proper management of funds: Under this system the level of advances in a bank is determined not by how much the banker can lend at a particular time but by the borrower's decision to borrow at that time. The system therefore does not encourage proper management of the funds by banks.

These weaknesses of the cash credit system were highlighted by a number of committees appointed for this purpose in India. Guidelines have been issued by the Reserve Bank for reforming the cash credit system on the basis of recommendations of the Tandon Committee and Chore Committee.

3> OVERDRAFTS: Overdraft is an arrangement between a banker and his customer by which the latter 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. The borrower is permitted to draw and repay any number of times, provided the total amount overdrawn does not exceed the agreed limit. The interest is charged only for the whole amount sanctioned.

A cash credit differs from an overdraft in one respect. Businessman in doing regular business whereas overdraft is made occasionally and for short duration uses a cash credit for long term.

Temporary Overdraft: Banks, sometimes, grant unsecured overdraft for small amount to customers having current account with them. Such customers may be government employees with fixed income or traders. Temporary overdrafts are permitted only where reliable source of funds is available to a borrower for repayment.

Page | 38 Prof. V. B. Shah Institute of Management

4> BILLS DISCOUNTED AND PURCHASED: Banks grant advances to their customers by discounting bill of exchange or promote. The amount, after deducting the interest from the amount of the instrument, is created in the account of the customer. In this form of lending, the banker receives the interest in advance. Discounting of bill constitutes a clean advance and banks rely on the credit worthiness of the parties to the bill.

Banks, sometimes, purchase the bills instead of discounting them. The bankers purchase bills, which are accompanied by documents of title to goods such as bills of landing or railway receipt. In such cases, the banker grants loans in the form of overdraft or cash credit against the security of the bills. The term 'Bills Purchased' seems to imply that the bank becomes the purchaser/ owner of such bills. But in almost all cases the bank holds the bill only as a security for the advances.

Advantages of Discounting of Bills: -

1>Safety of bank funds: A banker is primarily concerned with the safety of the funds he lends. Through the banker does not get charge over any tangible assets in case of discounting of bills, legal instrument bearing signatures of two parties considered good for the amount of the bill. The banker can enforce his claim much more easily in the case of bills. If the acceptor of the bill fails to make payment on its due date, the drawer has the remedy to claim the whole amount from his customer, the drawer of the bill. In case the bill is dishonored, the banker debts amount to his customers account and send him intimation. Thus, the banker is fully confidence of recovering his money on the due date. To be on the safer side a banker should discount bills of exchange offered by parties of standing and good reputation.

Page | 39 Prof. V. B. Shah Institute of Management

2> Certainty of payment: A Bill of Exchange is considered and ideal self-liquidating assets because it originates from an actual commercial transaction and the debtor meets the obligation to pay by disposing of the goods acquired from the creditor within a short period of time. As the Bill of Exchange matures within a 'short period of time' the banker recovers his money on the due date with certainty. The bills are therefore, called 'semi-liquid' assets. As the banker known in advance the dates on which the discounted bills will mature, he can invest his funds in such a way that the same are profitably utilized to the maximum extent, without unnecessarily maintaining large cash balances. Thus, a banker is able to maximize his profit without taking any undue risk.

3> Facility of Refinance: When a banker is in need of funds, he can secure accommodation from the central bank of country on the basis of eligible securities including the bills is counted. The bills can also be rediscounted with the central bank or any other bank/ financial institution and thus the need for cash balances can be met more easily and quickly.

4>Stability in the value of the bill: The value of the bills as a security does not fluctuate while the value of all-tangible goods and securities is liable to fluctuations. The amount payable on account of a bill is fixed and the acceptor or the drawer is liable to pay the same in full. As the bill is a legally enforceable instrument, neither of these parties can subsequently dispute the validity of the banker's claim. These parties may be summarily sued for the payment of the amount of the bill.

5> Profitability: While discounting the bills the banker deducts interest from the amount of the bill. In case of other types of loan and advances, interest is payable by the debtor quarterly or halfyearly. Thus, the yield from discounting of bills is a title higher, if the rate of interest or discount remains the same as in the case of other loans, for example, if a bill of exchange for Rs. 1,000/payable after 3 months is discounted @ 6 per cent per annum, the banker pays Rs. 985 (Rs. 1,000-Rs. 15). The actual yield thus comes to 6.38 percent per annum.

Page | 40 Prof. V. B. Shah Institute of Management

4.3>General Loan Procedure:


Normally various National and Co-operative banks adopt following procedure for loan sanctioning.

(1)

Submission of Loan Application: The borrower may submit the application to any of the term lending institution .The

borrower is required to fill out a common application form which seeks comprehensive information about the project the common application form covers the aspects like promoters background, particulars of the industrial concern, particulars of the project, cost of the project means of financing, marketing and selling arrangement, profitability and cash flow, economic consideration etc

(2)

Initial processing of Loan Application: When the application is received, an officer of the receipt institution reviews it to

ascertain whether it is incomplete the borrower is asked to provide the required additional information when the application is considered complete, the recipient institution prepares a Flash Report. It is evaluated at the senior executive meeting .for the conveniences of borrow, financial institution operates a scheme of participation for rupee term loans and underwriting assistance.

(3)

Issue of the letter of sanction: After the board of directors of the lead financial institution approves the proposal, a

financial letter of sanction is issued to the borrower this communication to the borrower the assistance sanctioned by the lead institution and the assistance sanctioned/to be sanctioned by other participating in the consortium arrangement Each of the participating institution would, after approval by its board of directors or other appropriate authority, convey sanction of its shares of assistance to the lead institution under a advice to the borrower. If a participating institution is not able to make available its shares of assistance, the same will be shared on prorates basis amongst the lead and other participating institutions.

Page | 41 Prof. V. B. Shah Institute of Management

(4)

Acceptance of the Terms and Condition by the borrowing units: On receiving the letter of sanction from the lead financial institution, the borrowing unit

convenes its board meeting at which the term and condition associated with the letter of sanction are accepted and an appropriates resolution is passed to that effect. The acceptance of the terms and condition has to be conveyed to the financial institution within thirty days.

(5)

Execution of Loan Agreement: The lead financial institution after receiving the letter of acceptance form the borrower,

sends the drafts of the agreement to the borrower to be executed by authorized person and properly stamped as per the Indian stamp act, 1899.the agreement, properly executed and stamped, along with other document as required by the financial institution also sings the agreement, it becomes effective.

(6)

Disbursement of Loan: Periodically, the borrower is required to submit information on the physical progress of

the project, financial status of the project, arrangement made for financing the project, contribution made by the promoters, projected funds flow statement, compliance with various statutory requirements and fulfillment of pre-disbursement conditions. Based on the information provided by the borrower, the lead financial institution will determine the amount of terms loans to be disbursed from time to time. Before the term loan is disbursed the borrower must fully comply with all the term and conditions of the loan agreement.

(7)

Creation of Security: The term loans and the differed payment guarantee assistance provided by the all India

financial institutions are secured through the first mortgage by way of deposit of title deeds of immovable property and hypothecation of movable properties. As the creation mortgage, particularly in the case of land, tends to be a time consuming progress, the institution permit interim disbursement against alternate security. The mortgage, however, has to be created within a year from the date of the first disbursement otherwise the borrower has to pay an additional charge of 1% interest.
Page | 42 Prof. V. B. Shah Institute of Management

4.4 Various loans Schemes:The bank providing various loan are as follows:-

Vehicle Loan Machinery Loan Education Loan Consumer Loan Gold Loan Staff Loan Fixed Deposit Loan Housing Loan

4.5 Recovery procedure of loan: Recovery is an important part of the bank. Bank play a role of collect the amount from saver and provide to borrowers. After giving loan, it returns with in its fixed period, If it does not return then, it responsibility of banker to collect the loan amount and which includes interest and principle amount. It is prime responsibility of banker to collect loan banker takes the following action,

i) Give letter remainder with details of its account. First remainder Second remainder (To give information to the director who sign the loan application). Third/ Strong remainder.

ii) Through discussion. iii) iv) v) It necessary then layers notice. Recovery schemes. Legal provision.

Page | 43 Prof. V. B. Shah Institute of Management

1. Vehicle Loan: The vehicle loan is provided to customer by purchased a two-wheeler vehicle or four wheeler vehicles. This loan is providing to individual, partner ship, and proprietorship private limited company. The bank provides a loan before all papers clear with a 24 hours sanction a loan. 75% of an original price of vehicle to provide customer and the maximum period of loan is 36 months. The bank for its security to collected by customer property documents.

Limit: Maximum limit in Rs. 80% of an original price of vehicle.

Margin: For two wheeler 20% For three wheeler 30% For four wheeler 45%

Security:The bank for its security to collected by customer property documents.

Requirements for vehicle loans: All basic documents, Invoice of purchasing vehicle etc.

Rate of Interest on Vehicle loan for last five years


Year The Sutex Co-operative Bank 2006-07 2007-08 2008-09 2009-10 2010-11 13.5% 13% 11.5% 11% 10% The Akhandanad Co-operative Bank 14% 13% 12% 11.5% 11% The Sasvat Co-operative Bank 14% 12.5% 12% 10.5% 9.5%

Page | 44 Prof. V. B. Shah Institute of Management

Total Sanctioned, Recovery, Overdue and Doubtful debt of Vehicle loan for last five years
The Sutex Co-operative Bank
Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 10227259.65 114467497.8 133985598 137101412.57 161842741.25 Recovery 85692461.35 95682348.35 115486326 125968746.35 145862358.36 Overdue 3155482 2953244 2604587 375747 740328 Doubtful debt 3257 5124 25256 1452 -

The Akhandanad Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 86597234.25 93568741.2 99586324.58 103596874 113698452.38 Recovery 76598412 86592450 90015486.65 90258496.25 103605402.25 Overdue 6584263.58 8452695.25 3565215 2154863.85 1985624.92 Doubtful debt 3568 5846 2486 2419 10525

Page | 45 Prof. V. B. Shah Institute of Management

The Sasvat Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 11586325.85 12596358.35 125863594 158634863.66 183500140.02 Recovery 9652300.55 102450050.83 110560408.22 135058600.48 163254085.06 Overdue 5326840 2685935.72 7256325.32 3695841 235600 Doubtful debt 6594 2650 5864 -

Page | 46 Prof. V. B. Shah Institute of Management

2. Machinery Loan: This loan provides to purchase Machinery. New Machinery purchase and hand old machinery valuation loan. The machinery loan provides to partnership firm, proprietorship firm etc. Bank provides different machinery loans according to business requirements and different margins.

Limit: i> New Machinery ii> Old Machinery :- 80% of quotation :- (1) 70% of valuation of valuate committee member's valuation who is Textile Machinery Degree Holder. (2) 70 % of other approved machinery. In machinery loan bank accepts pre and post inspection. In present maximum advances or loans amount is Rs. 1165 crore.

Margin: When dept equity ratio is 2:1 then 20%on loan amount.

Stamp: It is necessary to stamp at 0.20% of hypothecation loan amount. In this mostly upto Rs. 1,00,000/- stamp is involves.

Time period:-72 to 73 month installment Bank grants mostly 6 years installment in this loan. In this 6 months Moratorium Periods are included.

Security:-3lacks then 1 surety -Above 3lacks 2 surety The bank for its security to collected by customer property documents.

Page | 47 Prof. V. B. Shah Institute of Management

Documents required for loans: Income proof (with other income), Quotation of machinery, One surety upto Rs.3,00,000/- and two surety beyond Rs. 3,00,000/-, Factory proof, Electric Bills, Registered Certificate, C.S.T./G.S.T./S.S.I. number/ senate Registration Certificate, If having old machinery then its receipt of bill, Additional Security if having more amount. Most of advances or loans of bank are in machinery. In which mostly in Textile Machinery's. It is biggest risk of bank liquidity position. All the loan application of machinery is sanction by 'Loan Committee'. In this applicant does not presence. In present bank adopts Technology Upgradation Fund (T.U.F.) Scheme.

In machinery loan the bank prepares the following documents: i> ii> iii> iv> v> vi> Loan Paper, Surety Letter, Promissory Note, Declaration, Equitable Mortgage if necessary, If does not have member then Share Application Form,

Page | 48 Prof. V. B. Shah Institute of Management

Rate of Interest on Machinery loan for last Five Years


Year The Sutex Co-operative Bank 2006-07 2007-08 2008-09 2009-10 2010-11 14% 14% 13..5% 13% 13% The Akhandanad Co-operative Bank 15% 14.5% 14% 13.5% 13.5% The Sasvat Co-operative Bank 16% 15% 14.5% 14.5% 14%

Total Sanctioned, Recovery, Overdue and Doubtful debt of Machinery loan for last Five Years
The Sutex Co-operative Bank
Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 91156020.9 93345593.7 1181317397.74 1439924271.91 1569540635.34 Recovery 85632400.2 88659200.54 109652345 123586004.34 135986000.81 Overdue 9568236 8836837 8265945 5681051 5926777 Doubtful debt 65842 36594 68542 125634 35684

Page | 49 Prof. V. B. Shah Institute of Management

The Akhandanad Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 56890104 65894860.84 81264009.6 98564000 105684040.8 Recovery 39956840 53684100.3 69458203.61 79564540 89935006.1 Overdue 1002568 956841 65842 75420 84005 Doubtful debt 75922 55640 88563 34257 21536

The Sasvat Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 75640241.3 85691254.85 96800104.1 102132254 125840006.5 Recovery 68452100 75624130 79900586.5 89586240 102589631.8 Overdue 215846.2 99658 84520 65010 45142 Doubtful debt 85426 35954 80254 75480 55002

Page | 50 Prof. V. B. Shah Institute of Management

3. Education Loan: Education loan is a better facility to student of higher study in India or Foreign. The bank provided a loan according to student parent's income. The rate of loan is different in India and Foreign. This loan is providing after standard 12th. This facility is good facility to student who wants to study more. Now a day's bank gives education loan for higher study. In this bank gives loan as follows: -

Limit: (i) (ii) For study in India, maximum Rs. 8,00,000/- is given, Out of India (foreign) study, maximum Rs. 10,00,000/- (including air ticket) is given.

Margin: In this scheme bank take 10% as margin and 5% loans amount taken.

Security:In this bank take as securities are as follows:(i) (ii) (iii) Property of applicant, Government Security, Its fixed deposit, L.I.C. policy etc.

If more than Rs. 5,00,000/- given as a loan then take one property mortgage and 25% of loans amounts LIC policy is assign to bank.

Requirements for education loans:In this the following documents are required: Application form printed by the bank, Bio-data of applicant, Mark sheet of last exam, Copy of admission form of institution where they want to study and detail of its expenses, if they want to study in foreign then copy of I-20.
Page | 51 Prof. V. B. Shah Institute of Management

Rate of Interest on Education loan for last Five Years


Year The Sutex Co-operative Bank 2006-07 2007-08 2008-09 2009-10 2010-11 7.5% 7% 6.5% 6% 6% The Akhandanad Co-operative Bank 8.5% 8% 8% 7.5% 7% The Sasvat Co-operative Bank 7.5% 7% 7% 6.5% 6.5%

Total Sanctioned, Recovery, Overdue and Doubtful debt of Education loan for last Five Years

The Sutex Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 11152452.33 16447545.64 26455572 34197430.60 30549738.50 Recovery 8562301.54 99568424 12250040.8 22250150 25035604.54 Overdue 28456 22541 Doubtful debt 25864 -

Page | 52 Prof. V. B. Shah Institute of Management

The Akhandanad Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 5684206.68 8475235.9 12154862.1 11254850.6 18820050.2 Recovery 3658900.55 5481265.33 7658608 8659424.4 10125480.8 Overdue 6584 56544 22110 Doubtful debt 3365 2450

The Sasvat Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 7526420.25 9935642.6 12653254.5 15420006.5 20140508.4 Recovery 5486235.54 6598452 8658010 11100564.8 17002548.6 Overdue 55621 65821 Doubtful debt 45842 22594 -

Page | 53 Prof. V. B. Shah Institute of Management

4. Consumer Loan: This loan is providing to purchase daily used items in house. Banks this types of loans involves different types of instruments like daily use of house is Television, Refrigerator, Gas, Telephone, Computer, Furniture, Video, Washing Machine, Truck, Auto Rickshaw, Tempo, Car, Scooter etc. The bank providing a loan according to price. Banks margin for all these are as follows: -

Limit:i> 80% of the quotation of Television, Refrigerator, Gas, Telephone, Computer, Furniture, Video, Washing Machine etc. ii> 85% of the quotation of Truck, Auto Rickshaw, Tempo, Car, Scooter etc.

Security:
For this types of loan bank takes security for scooter loans Rs. 500/- and for car loan Rs. 5000/-. It gives to customer after receiving R.T.O. book, insurance policy and bills receipts.

Time period:50 installment

Margin:30% of loan amount

Documents Required for the Loan: Income Proof, Proof of place where vehicles are park, One surety who have properties, Quotation, All the documents or details if previously any types of loans are taken, Other necessary information.

If applicant purchase any instruments within the 6 months then bank grants above margin. Only 'Loan Committee' has right of acceptance of loan. Then after for final selection

Page | 54 Prof. V. B. Shah Institute of Management

purpose it presented in the board meeting. When bank wants any additional securities in that case ask for customer after some time for it.

For these purpose the following documents prepared by the bank:


i> ii> iii> iv> v> Promissory Notes (with Revenue Stamp), Loan Paper, Surety Paper, Undertaking (if have), If board member is not then nominal member/ share application form

For this types of loans bank gives share of 2.5% of loans amount (excluding case of consumer loan).

Rate of Interest on Consumer loan for last Five Years


Year The Sutex Co-operative Bank 2006-07 2007-08 2008-09 2009-10 2010-11 13.5% 13% 12% 13% 12.5% The Akhandanad Co-operative Bank 14.5% 14% 13.5% 14% 13% The Sasvat Co-operative Bank 14% 13% 13% 12.5% 12%

Page | 55 Prof. V. B. Shah Institute of Management

Total Sanctioned, Recovery, Overdue and Doubtful debt of Consumer loan for last Five Years

The Sutex Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 1056842 1189820 1575595 1213458 1170331 Recovery 956824 856942 1026584 1025480 958641 Overdue 55658 22564 15420 11524 10245 Doubtful debt 2561 5468 2451 3658 2568

The Akhandanad Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 5864720 685475 754856 953284 1025030 Recovery 365842 458651 568200 799254 865325 Overdue 22354 45824 12451 245185 45265 Doubtful debt 1253 5486 10245 9568 12548

Page | 56 Prof. V. B. Shah Institute of Management

The Sasvat Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 756814 901254 935846 865842 1102452 Recovery 586425 756200 768520 684595 758242 Overdue 86598 65842 22546 40254 20154 Doubtful debt 22564 4517 10245 11253 6584

Page | 57 Prof. V. B. Shah Institute of Management

5. Gold Loan: The bank gives gold loan to customers or people on pledge of ornament of gold. First decide the value of ornament by the help of goldsmith of bank. And bank grants the 70% to 80% loan on valuation of ornament of gold. Generally this loan is given for two years and after two years customer will have to return this loan with the interest. There are on any rebut provide by bank on gold loan.

Time period:2 to 3 Years

Margin:70% to 80% of Gold Value

Documents Required for the Loan: Income Proof, Proof of place where vehicles are park, Quotation, All the documents or details if previously any types of loans are taken, Other necessary information. Other personal information

Rate of Interest on Gold loan for last Five Years


Year The Sutex Co-operative Bank 2006-07 2007-08 2008-09 2009-10 2010-11 14% 13.5% 13% 12% 13% The Akhandanad Co-operative Bank 16% 15% 14% 13.5% 14% The Sasvat Co-operative Bank 13.5% 13% 12% 12.5% 12%

Page | 58 Prof. V. B. Shah Institute of Management

Total Sanctioned, Recovery, Overdue and Doubtful debt of Gold loan for last Five Years

The Sutex Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 5684534 985685 10254501 9684521 11252600 Recovery 2658424 6584852 8562485 6584521 8562451 Overdue 54862 356844 245863 Doubtful debt 145863 -

The Akhandanad Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 2458635 568421 4578625 9968542 8564214 Recovery 1259864 2568490 3562150 6001405 6025410 Overdue 556841 125426 Doubtful debt 55602 45200

Page | 59 Prof. V. B. Shah Institute of Management

The Sasvat Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 15486254 25684500 56584580 49862410 115472560 Recovery 9995680 15486201 44425680 40154862 67514230 Overdue 458655 124586 Doubtful debt 125582 55682

Page | 60 Prof. V. B. Shah Institute of Management

6. Staff Loan: This loan provided only bank staff. The loan is provided low rate of interest and loan margin is also favor of staff. This loan is provided related to employee salary. This loan is more benefit to staff. This loan is only provided staff to self-use.

Margin:-For officer clerk 25,000/-for sub-staff 20,000/-Manager 30,000/-

Documents Required for the Loan:-All basic documents


Income Proof, Proof of place where vehicles are park, One surety who have properties, Quotation, All the documents or details if previously any types of loans are taken, Other necessary information.

Rate of Interest on Staff loan for last Five Years


Year The Sutex Co-operative Bank 2006-07 2007-08 2008-09 2009-10 2010-11 9% 7.5% 7% 6% 6% The Akhandanad Co-operative Bank 105 9% 9% 8.5% 8% The Sasvat Co-operative Bank 9% 9% 8% 7.5% 7%

Page | 61 Prof. V. B. Shah Institute of Management

Total Sanctioned, Recovery, Overdue and Doubtful debt of Staff loan for last Five Years

The Sutex Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 20154863 28506540 30045286 35581397 35331833 Recovery 10254862 12548624 19956248 22265000 28564001 Overdue Doubtful debt -

The Akhandanad Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 9684260 12254863 15586240 11254632 19584620 Recovery 5264822 6542580 9256124 9024568 13325600 Overdue 55200 Doubtful debt 21650 -

Page | 62 Prof. V. B. Shah Institute of Management

The Sasvat Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 8659210 14253684 12546543 15654985 25486214 Recovery 5230010 9658456 8568420 9965842 11254862 Overdue 120056 258000 Doubtful debt 65800 133000

Page | 63 Prof. V. B. Shah Institute of Management

7. Fixed Deposit Loan: This loan given by the fixed depositor.

Limit:90.00% of face value of receipt.

Margin:The loan margin is 60% of the FD.

Time Period:- This loan maturity date is same as FD.

Documents Required for the Loan:- All basic documents

Rate of Interest on Fixed Deposit loan for last Five Years


Year The Sutex Co-operative Bank 2006-07 2007-08 2008-09 2009-10 2010-11 16% 15% 14% 14.5% 14% The Akhandanad Co-operative Bank 18% 16% 16% 15.5% 15% The Sasvat Co-operative Bank 15% 14% 12.5% 13% 13%

Page | 64 Prof. V. B. Shah Institute of Management

Total Sanctioned, Recovery, Overdue and Doubtful debt of FD loan for last Five Years
The Sutex Co-operative Bank
Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 11258604.20 174307948.36 215120944.69 195640617.71 220297483.73 Recovery 65848620.56 85642015.35 100254866.5 123548625.1 112025861 Overdue 3586421 9584260 10215852 8562414 12458620 Doubtful debt 2256804 2365980 5642150 2145324 4265862

The Akhandanad Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 65894231.5 75486324.8 90156826.3 102456851.5 125486327.1 Recovery 35968475.52 45863001.56 68953214.47 74521562.3 86594215.6 Overdue 3568421 8659245 12542862 13549524 9965234 Doubtful debt 2356844 2154862 6523584 3568214 2525650

Page | 65 Prof. V. B. Shah Institute of Management

The Sasvat Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 86523100 98523647 102350200 186521456 235424586 Recovery 48562321 68523147 59963214 145236981 156823248 Overdue 8521470 9632582 12354580 15486235 12354786 Doubtful debt 4015860 2321548 4000154 5684261 8562314

Page | 66 Prof. V. B. Shah Institute of Management

8. Housing loan:Housing loan provide to a purchase a house, flats, shop, office or building. The loan providing individual, partnership, proprietorship, private ltd. co. to customer etc.

Limit:-Less than 50 crore then 5 lacks -Above 50 crore then 10 lacks

Margin:The margin of loan is 60% of valuation

Security:All original documents to present bank and after bank providing loan

Documents Required for the Loan:i> ii> iii> iv> v> vi> Last two years income proof, Residence proof, All the details of taking previously any types of loan in the bank, Business's /Service's proof, Copy of surety's city survey & tax receipts etc, Acceptance proof of objects for which loans are demanded.

Rate of Interest on housing loan for last Five Years


Year The Sutex Co-operative Bank 2006-07 2007-08 2008-09 2009-10 2010-11 16% 14% 13.5% 13% 13.25% The Akhandanad Co-operative Bank 17% 16.5% 16.5% 16% 14% The Sasvat Co-operative Bank 14.5% 14% 13.5% 13.25% 13%

Page | 67 Prof. V. B. Shah Institute of Management

Total Sanctioned, Recovery, Overdue and Doubtful debt of Housing loan for last Five Years

The Sutex Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 112568453 125694372 131227285 114608883 125756684 Recovery 68547214 65487235 54865234 75486214 75148652 Overdue 6325418 2148569 5486215 1453286 5486214 Doubtful debt 548642 86001 24500 65810 3514545

The Akhandanad Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 96582354 102586471 115486254 102485689 125864863 Recovery 48568235 65842318 63215848 59548621 65842135 Overdue 8624862 3179317 7961453 5486214 4562317 Doubtful debt 365800 1025486 2485001 2220010 1542030

Page | 68 Prof. V. B. Shah Institute of Management

The Sasvat Co-operative Bank


Year 2006-07 2007-08 2008-09 2009-10 2010-11 Sanctioned 102589472 125486234 156846235 145862485 175359862 Recovery 45869231 65842158 75486214 86215486 75214862 Overdue 4860120 4586001 12120045 15248625 9958624 Doubtful debt 1245780 5486221 6714500 6584200 2154862

Page | 69 Prof. V. B. Shah Institute of Management

1. Comparative Study of Interest Rate

Comparative Study of Interest Rate on year 2006-07


Bank
The Sutex Bank The Akhandanad Bank 13.5% 14% 7.5% 13.5% 14% 9% 16% 16% 14% 15% 8.5% 14.5% 16% 10% 18% 17% 14% 16% 7.5% 14% 13.5% 9% 15% 14.5% The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan Fixed Deposit Loan Housing loan

Interpretation: The table shows the details about the comparative interest rate on the different loan of The Sutex co-operative Bank, The Akhandanad co-operative Bank and The Sasvat co-operative Bank.For year 2006-07. In the year 2006-07 interest rate on the vehicle loan 13.5%, machinery loan 14%, education loan 7.5% and consumer loan 13.5% its was very less compare to the selected bank of The Sutex Bank. Also very less interest rate was very less on the gold loan 13.5%, staff loan 9%, Fixed Deposit loan 15% and Housing loan 14.5% of The Sasvat Bank The Akhandanad Banks all interest rate on the loan was higher than The Sutex bank and the Sasvat bank.

Page | 70 Prof. V. B. Shah Institute of Management

Comparative Study of Interest Rate on year 2007-08


Bank
The Sutex Bank The Akhandanad Bank 13% 14% 7% 13% 13.5% 7.5% 15% 14.5% 13% 14.5% 8% 14% 15% 9% 16% 16.5% 12.5% 15% 7% 13% 13% 9% 14% 14% The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan Fixed Deposit Loan Housing loan

Interpretation: The table shows the details about the comparative interest rate on the different loan of The Sutex co-operative Bank, The Akhandanad co-operative Bank and The Sasvat co-operative Bank. For year 2007-08. In the year 2007-08 interest rate on the vehicle loan 13%, machinery loan 15%, education loan 8% and consumer loan 15%, Fixed Deposit loan 16% and Housing loan 16.5% it was very higher compare to the selected bank of The Akhandanad Bank. interest rate was very less on the vehicle loan 12.5%, education loan 7%, consumer loan 13%, Fixed Deposit loan 14% and Housing loan 14% and gold loan 13% of The Sasvat Bank and interest rate of machinery loan 14% and staff loan 7.5% it was less of The Sutex bank compare to selected bank.

Page | 71 Prof. V. B. Shah Institute of Management

Comparative Study of Interest Rate loan on year 2008-09


Bank
The Sutex Bank The Akhandanad Bank 11.5% 13.5% 6.5% 12% 13% 7% 14% 13.5% 12% 14% 8% 13.5% 14% 9% 16% 16.5% 12% 14.5% 7% 13% 12% 8% 12.5% 13.5% The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative interest rate on the different loan of The Sutex co-operative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2008-09. In the year 2008-09 interest rate on the vehicle loan 11.5%, machinery loan 13.5%, education loan 6.5% , staff loan 7% and consumer loan 12% it was very less compare to the selected bank of The Sutex Bank. Also very less interest rate was very less on the gold loan 12%, Fixed Deposit loan 12.5% and Housing loan 13.5% of The Sasvat Bank. The Akhandanad banks all interest rate on the loan was higher than The Sutex Bank and The Sasvat Bank.

Page | 72 Prof. V. B. Shah Institute of Management

Comparative Study of Interest Rate on year 2009-10


Bank
The Sutex Bank The Akhandanad Bank 11% 13% 6% 13% 12% 6% 14.5% 13% 11.5% 13.5% 7.5% 14% 13.5% 8.5% 15.5% 14% 10.5% 14.5% 6.5% 12.5% 12.5% 7.5% 13% 13% The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative interest rate on the different loan of The Sutex co-operative Bank, The Akhandanad co-operative Bank and The Sasvat co-operative Bank. For year 2009-10. In the year 2009-10 interest rate on the machinery loan 13%, education loan 6% , gold loan 12% and Housing loan 13% its was less compare to the selected bank of The Sutex Bank. Interest rate was very less on the vehicle loan 10.5%, consumer loan 12.5% and Fixed Deposit loan 13% of The Sasvat Bank and The Akhandanad Banks all interest rate on the loan was higher than The Sutex Bank and The Sasvat Bank.

Page | 73 Prof. V. B. Shah Institute of Management

Comparative Study of Interest Rate on year 2010-11


Bank
The Sutex Bank The Akhandanad Bank 10% 13% 6% 12.5% 13% 6% 14% 13.25% 11% 13.5% 7% 13% 14% 8% 15% 14% 9.5% 14% 6.5% 12% 12% 7% 13% 13% The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative interest rate on the different loan of The Sutex co-operative Bank, The Akhandanad co-operative Bank and The Sasvat co-operative Bank. For year 2010-11. In the year 2010-11 interest rate on the, machinery loan 13.5%, education loan 6.5%,staff loan 7% and consumer loan 12% its was very less compare to the selected bank of The Sutex Bank. Also very less interest rate was very less on the gold loan 12%, vehicle loan 11.5% , Fixed Deposit loan 12.5% and Housing loan 13.5% of The Sasvat Bank. The Akhandanad Banks all interest rate on the loan was higher than The Sutex Bank and The Sasvat Bank.

Page | 74 Prof. V. B. Shah Institute of Management

2. Comparative Study of loan Sanctioned

Comparative Study of loan Sanctioned by the Banks on 2006-07


Bank
The Sutex Bank The Akhandanad Bank 10227259.65 91156020.9 11152452.33 1056842 5684534 20154863 11258604.20 112568453 86597234.25 56890104 5684206.68 5864720 2458635 9684260 65894231.5 96582354 113698452.38 75640241.3 7526420.25 756814 15486254 8659210 86523100 102589472 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative sanction on the different loan of the Sutex cooperative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2006-07. In the year 2006-07 higher sanction given on the machinery loan Rs 91156020.9, education loan Rs 11152452.33, staff loan Rs 20154863, Fixed Deposit loan Rs 11258604.20 and Housing loan Rs 112568453 by The Sutex bank. The Akhandanad bank give higher sanction on vehicle Loan Rs 86597234.25 and higher sanction on vehicle loan Rs 113698452.38, gold loan Rs 15486254 by The Sasvat bank.

Page | 75 Prof. V. B. Shah Institute of Management

Comparative Study of loan Sanctioned by the Banks on 2007-08


Bank
The Sutex Bank The Akhandanad Bank 114467497.8 93345593.7 16447545.64 1189820 985685 28506540 174307948.36 125694372 93568741.2 65894860.84 8475235.9 685475 568421 12254863 75486324.8 102586471 12596358.35 85691254.85 9935642.6 901254 25684500 14253684 98523647 126486234 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative sanction on the different loan of The Sutex co-operative Bank, The Akhandanad co-operative Bank and The Sasvat co-operative Bank. For year 2007- 08. In the year 2007-08 higher sanction given on the machinery loan Rs 93345593.7, education loan Rs 16447545.64, staff loan Rs 28506540, Fixed Deposit loan Rs 174307948.36 and consumer loan Rs 1189820 by The Sutex bank. The Akhandanad bank give higher sanction on housing Loan Rs 102586471. and Higher sanction on vehicle loan Rs 12596358.35, gold loan Rs 25684500 and housing loan Rs 126486234 by The Sasvat bank.

Page | 76 Prof. V. B. Shah Institute of Management

Comparative Study of loan Sanctioned by the Banks on 2008-09


Bank
The Sutex Bank The Akhandanad Bank 133985598 118131739.74 26455572 1575595 10254501 30045286 215120944.69 131227285 99586324.58 81264009.6 12154862.1 754856 4578625 15586240 90156826.3 115486254 125863594 96800104.1 12653254.5 935846 56584580 12546543 102350200 156846235 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative sanction on the different loan of The Sutex co-operative Bank, The Akhandanad co-operative Bank and The Sasvat co-operative Bank. For year 2008-09. In the year 2008-09 higher sanction given on the vehicle loan Rs 133985598, machinery loan Rs 1181317397.74, education loan Rs 26455572, staff loan Rs 30045286, Fixed Deposit loan Rs 215120944.69 and consumer loan Rs 1575595 by The Sutex bank. The Akhandanad bank give higher sanction on housing Loan Rs 115486254 and higher sanction on gold loan Rs 56584580 and housing loan Rs 156846235 by the Sasvat bank.

Page | 77 Prof. V. B. Shah Institute of Management

Comparative Study of loan Sanctioned by the Banks on 2009-10


Bank
The Sutex Bank The Akhandanad Bank 137101412.57 1439924271.91 34197430.60 1213458 9684521 35581397 195640617.71 114608883 103596874 98564000 11254850.6 953284 9968542 11254632 102456851.5 102485689 158634863.66 102132254 15420006.5 865842 49862410 15654985 186521456 145862485 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative sanction on the different loan of the Sutex cooperative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2009- 10. In the year 2009-10 higher sanction given on the machinery loan Rs 1439924271.91, education loan Rs 34197430.60, staff loan Rs 35581397, Fixed Deposit loan Rs 195640617.71 and consumer loan Rs 1213458 by the Sutex bank. The Akhandanad bank give higher sanction Fixed Deposit Loan Rs 102456851.5 and higher sanction on vehicle loan Rs 158634863.66, gold loan Rs 49862410 and housing loan Rs 145862485 by the Sasvat bank.

Page | 78 Prof. V. B. Shah Institute of Management

Comparative Study of loan Sanctioned by the Banks on 2010-11


Bank
The Sutex Bank The Akhandanad Bank 161842741.25 1569540635.34 30549738.50 1170331 11252600 35331833 220297483.73 125756684 113698452.38 105684040.8 18820050.2 1025030 8564214 19584620 125486327.1 125864863 183500140.02 125840006.5 20140508.4 1102452 115472560 25486214 235424586 175359862 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative sanction on the different loan of the Sutex cooperative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2010-11.In the year 2010-11 higher sanction given on the machinery loan Rs 1569540635, education loan Rs 30549738.50, staff loan Rs 35331833, and consumer loan Rs 1170331 by the Sutex bank. The Akhandanad bank give higher sanction on Fixed Deposit Loan Rs 125486327 and higher sanction on vehicle loan Rs 183500140.02, Fixed Deposit loan Rs 235424586, gold loan Rs 115472560 and housing loan Rs 175359862 by the Sasvat bank.

Page | 79 Prof. V. B. Shah Institute of Management

3. Comparative Study of loan Recovery by the selected Banks Comparative Study of loan Recovery by the Banks on the year 2006-07
Bank
The Sutex Bank The Akhandanad Bank 85692461.35 85632400.2 8562301.54 956824 2658424 10254862 65848620.56 68547214 76598412 39956840 3658900.55 365842 1259864 5264822 35968475.52 48568235 9652300.55 68452100 5486235.54 586425 9995680 5230010 48562321 45869231 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative loan recovery on the different loan of the Sutex co-operative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2006-07. In the year 2006-07 higher loan recovery on the machinery loan Rs 85632400.2, education loan Rs 8562301.54, consumer loan Rs 956824 staff loan Rs 10254862, Fixed Deposit loan Rs 65848620.56 and Housing loan Rs 68547214 by the Sutex bank. The Akhandanad bank higher loan recovery on vehicle Loan Rs 76598412 and higher loan recovery on vehicle loan Rs 9652300.55, gold loan Rs 9995680 by the Sasvat bank.

Page | 80 Prof. V. B. Shah Institute of Management

Comparative Study of loan Recovery by the Banks on 2007-08


Bank
The Sutex Bank The Akhandanad Bank 95682348.35 88659200.54 99568424 856942 6584852 12548624 85642015.35 65487235 86592450 53684100.3 5481265.33 458651 2568490 6542580 45863001.56 65842318 102450050.83 75624130 6598452 756200 15486201 9658456 68523147 65842158 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative loan recovery on the different loan of the Sutex co-operative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2007-08. In the year 2007-08 higher loan recovery on the machinery loan Rs. 88659200.54, education loan Rs 99568424, staff loan Rs 12548624, Fixed Deposit loan Rs 85642015.35 and consumer loan Rs 856942 by the Sutex bank. The Akhandanad bank higher loan recovery on vehicle loan Rs 86592450 and higher loan recovery on vehicle loan Rs 102450050.83, gold loan Rs 15486201 and housing loan Rs 65842158 by the Sasvat bank.

Page | 81 Prof. V. B. Shah Institute of Management

Comparative Study of loan Recovery by the Banks on 2008-09


Bank
The Sutex Bank The Akhandanad Bank 115486326 109652345 12250040.8 1026584 8562485 19956248 100254866.5 54865234 90015486.65 69458203.61 7658608 568200 3562150 9256124 68953214.47 63215848 110560408.22 79900586.5 8658010 768520 44425680 8568420 59963214 75486214 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative loan recovery on the different loan of the Sutex co-operative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2008-09. In the year 2008-09 higher loan recovery on the vehicle loan Rs 115486326, machinery loan Rs 109652345, education loan Rs 12250040.8, staff loan Rs 19956248, FD loan Rs 100254866.5 and consumer loan Rs 1026584 by the Sutex bank. The Akhandanad bank higher loan recovery on vehicle Loan Rs 90015486.65 and higher loan recovery on gold loan Rs 44425680 and housing loan Rs 75486214 by the Sasvat bank.

Page | 82 Prof. V. B. Shah Institute of Management

Comparative Study of loan Recovery by the Banks on 2009-10


Bank
The Sutex Bank The Akhandanad Bank 125968746.35 123586004.34 22250150 1025480 6584521 22265000 123548625.1 75486214 90258496.25 79564540 8659424.4 799254 6001405 9024568 74521562.3 59548621 135058600.48 89586240 11100564.8 684595 40154862 9965842 145236981 86215486 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative loan recovery on the different loan of the Sutex co-operative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2009-10. In the year 2009-10 higher loan recovery on the machinery loan Rs 123586004.34, education loan Rs 22250150, staff loan Rs 22265000 and consumer loan Rs 1025480 by the Sutex bank. The Akhandanad bank was higher loan recovery on vehicle Loan Rs 90258496.25 and higher loan recovery on vehicle loan Rs 135058600.48, gold loan Rs 40154862, Fixed Deposit loan Rs 14523691 and housing loan Rs 86215486 by the Sasvat bank.

Page | 83 Prof. V. B. Shah Institute of Management

Comparative Study of loan Recovery by the Banks on 2010-11


Bank
The Sutex Bank The Akhandanad Bank 145862358.36 135986000.81 25035604.54 958641 8562451 28564001 112025861 75148652 103605402.25 89935006.1 10125480.8 865325 6025410 13325600 86594215.6 65842135 163254085.06 102589631.8 17002548.6 758242 67514230 11254862 156823248 75214862 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative loan recovery on the different loan of the Sutex co-operative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2010-11.In the year 2010-11 higher loan recovery on the machinery loan Rs 135986000.81, education loan Rs 25035604.54,gold loan Rs 8562451, staff loan Rs 28564001 and consumer loan Rs 958641 by the Sutex bank. The Akhandanad bank was higher loan recovery on vehicle Loan Rs 1036054402.25 and higher loan recovery on vehicle loan Rs 163254085.06, Fixed Deposit loan Rs 156823248, and housing loan Rs 75214862 by the Sasvat bank.

Page | 84 Prof. V. B. Shah Institute of Management

4. Comparative Study of overdue loan of the selected Banks Comparative Study of overdue loan on the year 2006-07
Bank
The Sutex Bank The Akhandanad Bank 3155482 9568236 55658 54862 3586421 6325418 6584263.58 1002568 6584 22354 3568421 8624862 5326840 215846.2 86598 8521470 4860120 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative overdue loan on the different loan of the Sutex co-operative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2006-07. In the year 2006-07 higher loan overdue on the vehicle loan Rs 6584263.58, education loan Rs 6584, machinery loan Rs 1002568 and housing loan Rs 8624862 of the Akhandanad bank. And gold loan Rs 54862 by the Sutex bank. And also higher loan overdue on consumer loan Rs 86598, FD loan Rs 8521470 by the Sasvat bank.

Page | 85 Prof. V. B. Shah Institute of Management

Comparative Study of overdue loan on the year 2007-08


Bank
The Sutex Bank The Akhandanad Bank 2953244 8836837 22564 9584260 2148569 8452695.25 956841 45824 556841 8659245 3179317 2685935.72 99658 55621 65842 120056 9632582 4586001 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative loan overdue on the different loan of the Sutex co-operative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2007-08. In the year 2007-08 higher loan overdue on the vehicle loan Rs 8452695.25 and gold loan Rs 556841 of the Akhandanad bank. And machinery loan Rs 8836837 by the Sutex bank. and higher loan overdue on staff loan Rs 120056, Fixed Deposit loan Rs 3632582, education loan Rs 55621, consumer loan Rs 65842 and Housing loan Rs 4586001 by the Sasvat bank.

Page | 86 Prof. V. B. Shah Institute of Management

Comparative Study of overdue loan on the year 2008-09


Bank
The Sutex Bank The Akhandanad Bank 2604587 8265945 28456 15420 356844 10215852 5486215 3565215 65842 12451 55200 12542862 7961453 7256325.32 84520 22546 458655 12354580 12120045 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative loan overdue on the different loan of the Sutex co-operative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2008-09. In the year 2008-09 higher loan overdue on the vehicle loan Rs 7256325.32, consumer loan Rs 22546, gold loan Rs 458655, housing loan Rs 12120045 of the Sasvat bank and machinery loan Rs 8265945, education loan Rs 28456 of the Sutex bank. The Akhandanad bank higher loan overdue on staff loan Rs 55200 and Fixed Deposit loan Rs 12542862.

Page | 87 Prof. V. B. Shah Institute of Management

Comparative Study of overdue loan on the year 2009-10


Bank
The Sutex Bank The Akhandanad Bank 375747 5681051 11524 245863 8562414 1453286 2154863.85 75420 56544 245185 13549524 5486214 3695841 65010 65821 40254 15486235 15248625 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative loan overdue on the different loan of the Sutex co-operative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2009-10. In the year 2009-10 higher loan overdue on the vehicle loan Rs 2154863.85, consumer loan Rs 245185 of the Akhandanad bank and machinery loan Rs 5681051, gold loan Rs 245863 of the Sutex bank. The Sasvat bank higher loan overdue on education loan Rs 65821, housing loan Rs 15248625 and Fixed Deposit loan Rs 15486235.

Page | 88 Prof. V. B. Shah Institute of Management

Comparative Study of overdue loan on the year 2010-11


Bank
The Sutex Bank The Akhandanad Bank 740328 5926777 22541 10245 12458620 5486214 1985624.92 84005 22110 45265 125426 9965234 4562317 235600 45142 20154 124586 258000 12354786 9958624 The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative loan overdue on the different loan of the Sutex co-operative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. For year 2010-11. In the year 2010-11 higher loan overdue on the vehicle loan Rs 1985624.92, consumer loan Rs 45265 and gold loan Rs 125426 of the Akhandanad bank and machinery loan Rs 5926777, education loan Rs 22541 and Fixed Deposit loan Rs 12458620 of the Sutex bank. The Sasvat bank higher loan overdue on staff loan Rs 258000 and housing loan Rs 12354786.

Page | 89 Prof. V. B. Shah Institute of Management

5. Comparative Study of loan Amount of Selected Bank Comparative Study of loan Amount of Selected Bank
Bank
The Sutex Bank The Akhandanad Bank 80% of Quotation 70% Valuation 90% Requirement 80% Quotation 70% Valuation Less than 100000 90% Face Value 60% Valuation 80% of Quotation 70% Valuation 80% Requirement 80% Quotation 70% Valuation Less than 70000 80% Face Value 55% Valuation 90% of Quotation 65% Valuation 75% Requirement 80% Quotation 80% Valuation Less than 90000 90% Face Value 65% Valuation The Sasvat Bank

Particular
Vehicle Loan Machinery loan Education loan Consumer Loan Gold loan Staff Loan FD Loan Housing loan

Interpretation: The table shows the details about the comparative loan amount on the different loan of the Sutex co-operative Bank, The Akhandanad co-operative Bank and the Sasvat co-operative Bank. The Sutex bank gives the higher loan amount on the machinery loan, education loan, staff loan and Fixed Deposit loan. The Akhandanad bank give the higher loan amount on the machinery loan, and The Sasvat bank give the higher loan amount on the vehicle loan, gold loan, Fixed Deposit loan and housing loan.

Page | 90 Prof. V. B. Shah Institute of Management

Vehicle Loan
By comparison of vehicle loan of all three selected bank, I found that interest rate on vehicle loan of Sutex bank is lower as compare to Akhandanad bank and the Sasvat Bank. The Sasvat bank gives higher loan amount on the vehicle loan up to 90% of quotation. It is so high compare to other bank. The Sutex co-operative bank give the vehicle loan of Rs 10227259.65 on the year 2006-07 and Rs 161842741.25 on the year 2010-11. The Akhandanad co-operative bank give the vehicle loan of Rs 86597234.25on the year 2006-07 and Rs 113698452.38 on the year 2010-11. The Sasvat co-operative bank give the vehicle loan of Rs 11586325.85 on the year 2006-07 and Rs 183500140.02 on the year 2010-11.it shows that all the three banks loan sanction is continues increase but the Akhandanad co-operative bank growth rate of sanction is less compare to other selected banks. The Sutex co-operative bank recovery of the vehicle loan of Rs 85692461.35 on the year 200607 and Rs 145862358.36 on the year 2010-11.The Akhandanad co-operative bank recovery of the vehicle loan of Rs 76598412 on the year 2006-07 and Rs 103605402.25 on the year 2010-11. The Sasvat co-operative bank give the vehicle loan of Rs 9652300.55 on the year 2006-07 and Rs 163254085.06 on the year 2010-11.it shows that all the three banks loan recovery is continues increase but the Sasvat co-operative co-operative bank growth rate of recovery is less compare to other selected bank. The Sutex co-operative bank overdue on the vehicle loan of Rs 3155482 on the year 2006-07 and Rs 740328 on the year 2010-11.The Akhandanad co-operative bank overdue on the vehicle loan of Rs 6584263.58 on the year 2006-07 and Rs 1985624.92 on the year 2010-11. The Sasvat cooperative bank overdue on the vehicle loan of Rs 5326840 on the year 2006-07 and Rs 235600 on the year 2010-11.it shows that all the three banks loan overdue is decline but the Akhandanad co-operative banks overdue value is high compare to other selected bank. And doubtful debt is also high of Akhandanad bank of every year.

Page | 91 Prof. V. B. Shah Institute of Management

Machinery Loan
Comparative study of machinery loan of all three banks gives clear difference between interest rate, amount of loan, time period, etc. the interest rate on machinery loan of Sutex bank is 13% lower than the Akhandanad bank and the Sasvat bank. The Sutex bank and the Akhandanad bank give higher loan amount on the machinery loan up to 70% of Valuation. It is high compare to other bank. The Sutex co-operative bank give the machinery loan of Rs 1181317397.74 on the year 2008-09 and Rs 1569540635.34 on the year 2010-11. The Akhandanad co-operative bank give the machinery loan of Rs 81264009.6 on the year 2008-09 and Rs 105684040.8 on the year 2010-11. The Sasvat co-operative bank give the machinery loan of Rs 96800104.1 on the year 2008-09 and Rs 125840006.5 on the year 2010-11.it shows that all the three banks loan sanction is continues increase but the Sutex co-operative bank growth rate of sanction is very high compare to other selected banks. The Sutex co-operative bank recovery the machinery loan of Rs 109652345 on the year 2008-09 and Rs 135986000.81 on the year 2010-11.The Akhandanad co-operative bank recover the machinery loan of Rs 69458203.61 on the year 2008-09 and Rs 89935006.1 on the year 2010-11. The Sasvat co-operative bank recover the machinery loan of Rs 79900586.5 on the year 2008-09 and Rs 102589631.8 on the year 2010-11.it shows that all the three banks loan recover is continues increase but the Akhandanad co-operative bank growth rate of recovery of loan is very high compare to other selected banks. The Sutex co-operative bank overdue the machinery loan of Rs 8265945 on the year 2008-09 and Rs 5926777 on the year 2010-11. The Akhandanad co-operative bank overdue the machinery loan of Rs 65842 on the year 2008-09 and Rs 84005 on the year 2010-11. The Sasvat cooperative bank overdue the machinery loan of Rs 84520 on the year 2008-09 and Rs 45142 on the year 2010-11.it shows that all the three banks loan overdue is decline but the Sasvat cooperative banks overdue value of loan is very high every year compare to other selected banks. And doubtful debt is also high of Akhandanad bank of every year.

Page | 92 Prof. V. B. Shah Institute of Management

Education Loan
By comparison of education loan of all three selected bank, I found that interest rate on education loan of Sutex bank is lower as compare to Akhandanad bank and the Sasvat Bank.The Sutex bank give higher loan amount on the education loan up to 90% of requirement. It is so high compare to other bank. The Sutex co-operative bank give the education loan of Rs 34197430.60 on the year 2009-10 and Rs 30549738.50 on the year 2010-11. The Akhandanad co-operative bank give the education loan of Rs 11254850.6 on the year 2009-10 and Rs 18820050.2 on the year 2010-11. The Sasvat co-operative bank give the education loan of Rs 15420006.5 on the year 2009-10 and Rs 20140508.4 on the year 2010-11.it shows that all the three banks loan sanction is continues increase but the Akhandanad co-operative bank growth rate of sanction is less compare to other selected banks. The Sutex co-operative bank recovery of the education loan of Rs 22250150 on the year 2009-10 and Rs 25035604.54 on the year 2010-11.The Akhandanad co-operative bank recovery of the education loan of Rs 8659424.4 on the year 2009-10 and Rs 10125480.8 on the year 2010-11. The Sasvat co-operative bank give the education loan of Rs 11100564.8 on the year 2009-10 and Rs 17002548.6 on the year 2010-11.it shows that all the three banks loan recovery is continues increase but the Sasvat co-operative bank growth rate of recovery is high compare to other selected bank. The Sutex co-operative bank overdue on the education loan of Rs 22541 on the year 2008-09 and Rs 0 on the year 2010-11.The Akhandanad co-operative bank overdue on the education loan of Rs 56544 on the year 2009-10 and Rs 22110 on the year 2010-11. The Sasvat co-operative bank overdue on the education loan of Rs 55621 on the year 2008-09 and Rs 0 on the year 2010-11.it shows that all the three banks loan overdue is decline but the Sasvat co-operative banks overdue value is high compare to other selected bank and no doubtful debt.

Page | 93 Prof. V. B. Shah Institute of Management

Consumer Loan
Comparative study of consumer loan of all three banks gives clear difference between interest rate, amount of loan, time period, etc. the interest rate on consumer loan of Sasvat bank is 12% lower than the Akhandanad bank and the Sutex bank. The Sutex bank gives higher loan amount on the consumer loan up to 80% of quotation. It is high compare to other bank. The Sutex cooperative bank give the consumer loan of Rs 1575595 on the year 2008-09 and Rs 1170331 on the year 2010-11. The Akhandanad co-operative bank give the consumer loan of Rs 953284 on the year 2008-09 and Rs 1025030 on the year 2010-11. The Sasvat co-operative bank give the consumer loan of Rs 935846 on the year 2008-09 and Rs 1102452 on the year 2010-11.it shows that all the three banks loan sanction is continues increase but the Sutex co-operative bank growth rate of sanction is very high compare to other selected banks. The Sutex co-operative bank recovery the consumer loan of Rs 1026584 on the year 2008-09 and Rs 958641 on the year 2010-11.The Akhandanad co-operative bank recover the consumer loan of Rs 568200 on the year 2008-09 and Rs 865325 on the year 2010-11. The Sasvat co-operative bank recover the consumer loan of Rs 768520 on the year 2008-09 and Rs 758242 on the year 2010-11.it shows that all the three banks loan recover is continues increase but the Akhandanad co-operative bank growth rate of recovery of loan is very high compare to other selected banks. The Sutex co-operative bank overdue the consumer loan of Rs 15420 on the year 2008-09 and Rs 10245 on the year 2010-11. The Akhandanad co-operative bank overdue the consumer loan of Rs 12451 on the year 2008-09 and Rs 45265 on the year 2010-11. The Sasvat co-operative bank overdue the consumer loan of Rs 22546 on the year 2008-09 and Rs 20154 on the year 201011.it shows that all the three banks loan overdue is decline but the Sasvat co-operative banks overdue value of loan is very high every year compare to other selected banks. And doubtful debt is also high of Sasvat bank of every year.

Page | 94 Prof. V. B. Shah Institute of Management

Gold Loan
By comparison of gold loan of all three selected bank, I found that interest rate on gold loan of Sasvat bank 12% is lower as compare to Akhandanad bank and the Sutex Bank. The Sasvat banks higher loan amount on the gold loan up to 85% of valuation. It is so high compare to other bank. The Sutex co-operative bank give the gold loan of Rs 9684521 on the year 2009-10 and Rs 11252600 on the year 2010-11. The Akhandanad co-operative bank give the gold loan of Rs 9968542 on the year 2009-10 and Rs 8564214 on the year 2010-11. The Sasvat co-operative bank give the gold loan of Rs 49862410 on the year 2009-10 and Rs 115472560 on the year 2010-11.it shows that all the three banks loan sanction is continues increase but the Akhandanad co-operative bank growth rate of sanction is less compare to other selected banks. The Sutex co-operative bank recovery of the gold loan of Rs 6584521 on the year 2009-10 and Rs 8562451 on the year 2010-11.The Akhandanad co-operative bank recovery of the gold loan of Rs 6001405 on the year 2009-10 and Rs 6025410 on the year 2010-11. The Sasvat cooperative bank give the gold loan of Rs 40154862 on the year 2009-10 and Rs 67514230 on the year 2010-11.it shows that all the three banks loan recovery is continues increase but the Akhandanad co-operative bank growth rate of recovery is high compare to other selected bank. The Sutex co-operative bank overdue on the gold loan of Rs 245863 on the year 2008-09 and Rs 0 on the year 2010-11.The Akhandanad co-operative bank overdue on the gold loan of Rs o on the year 2009-10 and Rs 125426 on the year 2010-11. The Sasvat co-operative bank overdue on the gold loan of Rs o on the year 2008-09 and Rs 124586 on the year 2010-11.it shows that all the three banks loan overdue is increase but the Sasvat co-operative banks overdue value is high compare to other selected bank And no any high doubtful debt.

Page | 95 Prof. V. B. Shah Institute of Management

Staff Loan
By comparison of staff loan of all three selected bank, I found that interest rate on staff loan of Sutex bank is 6% lower as compare to Akhandanad bank and the Sasvat Bank. The Sutex bank gives higher loan amount on the staff loan up to 100000. It is so high compare to other bank. The Sutex co-operative bank give the staff loan of Rs 35581397 on the year 2009-10 and Rs 35331833 on the year 2010-11. The Akhandanad co-operative bank give the staff loan of Rs 11254632 on the year 2009-10 and Rs 19584620 on the year 2010-11. The Sasvat co-operative bank give the staff loan of Rs 15654985 on the year 2009-10 and Rs 25486214 on the year 201011.it shows that all the three banks loan sanction is continues increase but the Sutex co-operative bank growth rate of sanction is less compare to other selected banks. The Sutex co-operative bank recovery of the staff loan of Rs 22265000 on the year 2009-10 and Rs 28564001 on the year 2010-11.The Akhandanad co-operative bank recovery of the staff loan of Rs 9024568 on the year 2009-10 and Rs 13325600 on the year 2010-11. The Sasvat cooperative bank give the staff loan of Rs 9965842 on the year 2009-10 and Rs 11254862 on the year 2010-11.it shows that all the three banks loan recovery is continues increase but the Sutex co-operative bank growth rate of recovery is high compare to other selected bank. The Sutex co-operative bank overdue on the staff loan of Rs o on the year 2008-09 and Rs 0 on the year 2010-11.The Akhandanad co-operative bank overdue on the staff loan of Rs 55200 on the year 2009-10 and Rs 0 on the year 2010-11. The Sasvat co-operative bank overdue on the staff loan of Rs 0 on the year 2008-09 and Rs 258000 on the year 2010-11.it shows that all the three banks loan overdue is decline but the Sasvat co-operative banks overdue value is high compare to other selected bank. And no any doubtful debt.

Page | 96 Prof. V. B. Shah Institute of Management

Fixed Deposit Loan


co-operative bank overdue the Fixed Deposit loan of Rs 12354580 on the year 2008-09 and Rs 12354786 Comparative study of Fixed Deposit loan of all three banks gives clear difference between interest rate, amount of loan, time period, etc. the interest rate on Fixed Deposit loan of Sasvat bank is 13% lower than the Akhandanad bank and the Sutex bank. The Sutex bank and the Sasvat bank give higher loan amount on the Fixed Deposit loan up to 90% of face value. It is high compare to other bank. The Sutex co-operative bank give the Fixed Deposit loan of Rs 215120944.69 on the year 2008-09 and Rs 220297483.73 on the year 2010-11. The Akhandanad co-operative bank give the Fixed Deposit loan of Rs 90156826.3 on the year 2008-09 and Rs 125486327.1 on the year 2010-11. The Sasvat co-operative bank give the Fixed Deposit loan of Rs 102350200 on the year 2008-09 and Rs 235424586 on the year 2010-11.it shows that all the three banks loan sanction is continues increase but the Sasvat co-operative bank growth rate of sanction is very high compare to other selected banks. The Sutex co-operative bank recovery the Fixed Deposit loan of Rs 100254866.5 on the year 2008-09 and Rs 112025861 on the year 2010-11.The Akhandanad co-operative bank recover the FD loan of Rs 68953214.47 on the year 2008-09 and Rs 86594215.6 on the year 2010-11. The Sasvat co-operative bank recover the Fixed Deposit loan of Rs 59963214 on the year 2008-09 and Rs 156823248 on the year 2010-11.it shows that all the three banks loan recover is continues increase but the Sasvat co-operative bank growth rate of recovery of loan is very high compare to other selected banks. The Sutex co-operative bank overdue the Fixed Deposit loan of Rs 12542862 on the year 200809 and Rs 9965234 on the year 2010-11. The Akhandanad co-operative bank overdue the Fixed Deposit loan of Rs 12354580 on the year 2008-09 and Rs 9965234 on the year 2010-11. The Sasvat on the year 2010-11.it shows that all the three banks loan overdue is decline but the Sasvat co-operative banks overdue value of loan is very high every year compare to other selected banks. And doubtful debt is also high of Sasvat bank of every year.

Page | 97 Prof. V. B. Shah Institute of Management

Housing loan
By comparison of housing loan of all three selected bank, I found that interest rate on housing loan of Sasvat bank 13% is lower as compare to Akhandanad bank and the Sutex Bank. The Sasvat bank gives higher loan amount on the housing loan up to 65% of valuation. It is high compare to other bank. The Sutex co-operative bank give the housing loan of Rs 114608883 on the year 2009-10 and Rs 125756684 on the year 2010-11. The Akhandanad co-operative bank give the housing loan of Rs 102485689 on the year 2009-10 and Rs 125864863 on the year 2010-11. The Sasvat co-operative bank give the housing loan of Rs 145862485 on the year 200910 and Rs 175359862 on the year 2010-11.it shows that all the three banks loan sanction is continues increase but the Sasvat co-operative bank growth rate of sanction is high compare to other selected banks. The Sutex co-operative bank recovery of the housing loan of Rs 75486214 on the year 2009-10 and Rs 75148652 on the year 2010-11.The Akhandanad co-operative bank recovery of the housing loan of Rs 59548621 on the year 2009-10 and Rs 65842135 on the year 2010-11. The Sasvat co-operative bank give the housing loan of Rs 86215486 on the year 2009-10 and Rs 75214862 on the year 2010-11.it shows that all the three banks loan recovery is continues increase but the Sutex co-operative bank growth rate of recovery is high compare to other selected bank. The Sutex co-operative bank overdue on the housing loan of Rs 1453286 on the year 2009-10 and Rs 5486214 on the year 2010-11.The Akhandanad co-operative bank overdue on the housing loan of Rs 5486214 on the year 2009-10 and Rs 4562317 on the year 2010-11. The Sasvat cooperative bank overdue on the housing loan of Rs 4562317 on the year 2009-10 and Rs 9958624 on the year 2010-11.it shows that all the three banks loan overdue is increase but the Sasvat cooperative banks overdue value is high compare to other selected bank. And no any high doubtful debt.

Page | 98 Prof. V. B. Shah Institute of Management

Findings
Loan sanctioned of loan is continues increasing all the bank in present year compare to previous 5 year. The banks interest rates on some loans are comparatively high than the Sutex Bank. The vehicle loan has increased by up to 50% in current year as compared to previous 5 year in all the Banks but Sasvat banks groth rate is so high compare to other banks. The growth rate of Sutex bank on machinery loan and education loan is so high than as compared with other banks. Loan procedure is simple but time consuming. Rate of Interest of Akhandanad banks on hosing loan and FD loan is higher then Sutex and Sasvat banks interest rate. Loan amount on vehicle loan and housing loan is high of Sasvat bank and on education loan and staff loan s high of Sutex bank compare to the Akhandanad bank. Recovery of loan and is good and less of overdue loan of Sutex bank compare to the Sasvat and the Akhandanad bank. Doubtful debt is high of Sasvat bank of so many loans on every year as compare to other banks.

Page | 99 Prof. V. B. Shah Institute of Management

Conclusion

In this project, I have been done a study of Loan and Advances Analysis of The Sutex Co-operative Bank Ltd. Of last five year. I found that the short term and medium term loan is increasing year by but requirement of long term loan is so increasing. Also increasing the sanction on loan, recovery of loan .So, the bank is to develop and good position in the market. The profit of the bank is increases at high rate. But some interest rate on the loan is high compare to other banks and doubtful debt is also high. So, bank has to try to decline it.

The cash on hand is not good compare to The Sasvat Bank. So, the bank tries to maintain it. The no. of shareholders is increases continuously year by year. So, it shows good position of the bank because of its work efficiency. Banks total business is also increasing up to 25% it also shows the good position and image of the bank. Banks investment in the other securities is also increase

Page | 100 Prof. V. B. Shah Institute of Management

Suggestions Interest rate on vehicle loan of Sutex bank is higher than the Sasvat bank. So the Sutex bank should reduce interest rate on vehicle loan, increase the sanction of loan and also increase the loan amount or it should provide some more facilities on that loan. Bank should reduce interest rate and increase the amount of FD loan and housing loan to attract borrowers. Gold loan and housing loans recovery condition is not good of Sutex bank so it have to require maintain that loan recovery procedure. Bank should increase the loan amount of gold loan and housing loan because it is less than amount of the Sasvatbank and the Akhandanad bank. The banks should have to concentrate on increase the recovery of loan to reduce the amount of overdue and doubtful debt because recovery of total loan of Sutex bank is less than the Sasvat bank. Interest rate and loan amount of consumer loan of all three banks are generally same. The bank should increase time period of consumer loan of loan because it is too high than the Akhandanad bank. Bank should reduce the interest rate and increase the loan amount of housing loan and machinery loan to attract the borrowers. Documentation of loan should be simple and copy to some extant so that loan procedure will easy and more borrowers can attract by bank. The power of sanctioning small amount loans can be given to manager, manager credit & personnel and C.E.O. Sir's. e.g. Two wheeler loans, Staff loans, consumer loans and Three wheeler loans etc. Bank has tries to take varieties in loan schemes. So that loans and advances of the bank can be increases.
Page | 101 Prof. V. B. Shah Institute of Management

BIBLIOGRAPHY Banking Theory, Law and Practice -Gordon, Natarajan Himalaya Publication Hall.(2007-08) Banking Theory and Practice -Dr. P.K. Srivastava -Himalaya Publication Hall.(2009-10) Loan Pamphlets of the bank. Annual Report of the bank. Websites:
http://www.investopedia.com/university/financialstatements/ http://www.rbi.org.in/ http://en.wikipedia.org/wiki/Financial_statement_analysis http://www.sutexbank.com/ http://www.financialstatementanalysis.org/broker-explains-fha-financing/

Page | 102 Prof. V. B. Shah Institute of Management