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A STUDY ON LENDING PRACTICES OF RDCC BANK, SINDHANUR

CHAPTER –1

 INTRODUCTION
 STATEMENT OF PROBLEM
 OBJECTIVES OF THE STUDY
 SCOPE OF THE STUDY
 RESEARCH METHODOLOGY
 LIMITATIONS OF THE STUDY
 CHAPTER SCHEME
CHAPTER -2

 INDUSTRY PROFILE

 COMPANY PROFILE

CHAPTER -3

THEORETICAL FRAMEWORK

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

CHAPTER -5

FINDINGS, SUGGESTIONS AND CONCLUSION

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INTRODUCTION:

Credit is the provision of resources (such as granting a loan) by one party to


another party where that second party does not reimburse the first party immediately
there by generating a debt instead arranges either to repay or return those recourses at a
later date. Its every form of deferred payment. The first party is called a creditor or lender
while the second party is called borrower or debtor.

Lending is the key function of the Bank. Lending of loans is major source which
generates more than 90%of the income to the Banks depending on the type of Bank. As
we have observed majority of co-operative Bank fund are employed in the form of loans.
Loans bring good money to the bank in the form of profit by charging interest. Lending
activity of a co operative bank is reciprocal activity in the sense bank gets profit and the
loaners get the benefit by getting money required for their activities particularly trade
industry and agriculture are benefited to a greater extent.

The wheels of industry cannot run without bank loans, but banks should assert the
conditions of industry or trade or any business enterprises while making loans to them.

The rate of interest depend on the type of loan, banks will classify there lending of
loans in to priority and non priority sectors. For priority sector the banks will charge less
interest rate than the non priority sector.

Lending of loan directly influence the growth , lending of loans at reasonable rate
of interest for the industry helps that nation to achieve rapid industrialization and to solve
the unemployment problems in that nation.

Lending of loans will play a major role in the all-round development of any
Nation. Its importance in the development of the industry can not be questioned without
help of loans from the banks; no company can run its business.

The Lending policy of Bank will determine the Interest rates and the eligibility
criteria for granting loans to the customer. Banks lend both secured and unsecured loans.

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STATEMENT OF PROBLEM:

Credit lending activity is very important in every bank, which impacts on the
banks profitability, performance and the lending capacity of the bank. So it is essential to
study the banks credit lending policies and its impacts on bank.

OBJECTIVES OF THE STUDY:

 To know the different service offered by RDCC bank.


 To know the difference between theoretical and practical aspects of the bank.
 To study regarding the loans and advances offered by RDCC bank
 To know what strategies they develop to attract the customers.

SCOPE OF THE STUDY:

The fact that finance is the life blood of the every housing finance company’s and
it lies in the effective’s management of finance in organization. It is the largest source of
mobilization of the resources makes it crucial that the funds are used effectively. This
study is specially coverer by the “A STUDY ON LENDING PRACTICES OF RDCC
BANK” with special reference to the Sindhanur Branch.

RESEARCH METHODOLOGY:

Research methodology is a way to systematically solve the research problem, it


may be understood as a science of studying how research is done scientifically, in the
research methodology we study the various steps are generally adapted by a researcher in
studying his problem along with the logic behind them.

In selecting the sample for the study multistage purposive random sample
technique is adapted to select branches. At the first stage branches situated at Taluka
headquarters were selected that is 4 branches established in 4 head quarter of Raichur

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district were covered. At the second stage, Primary Agricultural co-operatives societies
were selected at the rate of two per taluk. While selecting societies , due weight age has
been given to factors like distance from head quarters of the branches, the size of
societies , loan disbursement and recovery performance, coverage of legal action etc… In
all 8 societies are selected from 4 taluks of the district. At the third stage , 2 beneficiaries
are selected on random basis in each society from the list of former member of the
societies. The secretary of each society and one director from each society were among
beneficiaries selected from each society. The secretary of each society and one director
from each society were among beneficiaries selected from each society. The secretary of
each society was consulted in selecting members who had taken loans from the banks.
For interpretation of other data statistical techniques such as ratios and index numbers are
applied.

In the course of discussing particular aspects of the investigation, the information


collected from primary sources and published documents are presented at the same place.

This enabled the researcher to discuss a particular aspects comprehensively from


different angles to give a balanced picture. The detailed methodology adopted in each
case is further discussed at the relevant place.

In addition, information is collected from officials and nom officials of the bank
in the form of opinions through interview method. Further, the minutes of the Annual
General Meeting, rehabilitation review committee meetings and Board meetings have
helped the researcher to assess the performance of the bank.

SOURCES OF DATA

1). Primary data

2).Secondary data

1). Primary data: Data which is originally collected in the process of the investigation
are known as Primary data .The primary data has been collected through direct discussion
with Branch Manager, and the Organization Employees of the bank.

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2). Secondary data: Data readily available in one or other form which has been collected
by someone for their own use is called as secondary data .Secondary data has been
collected from books , newspapers ,internet and from other sources.

The rest of the information will be collected from the following sources.

 Company dairy
 Company manuals.
 Text books,
 Internet and magazines
 Articles on the banking in India.

LIMITATIONS OF THE STUDY:

The study has the following limitations

 The time confined is very limited.


 It was not possible to study all aspects relating to bank in detail.
 Conclusion and suggestion are offered are of personal in nature or personal
view.
 Analysis is done on the basis of information provided by bank and
respondents.

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Chapter scheme:

Chapter-1 Research Design

It gives the information about the process of the study, which includes statement
of problem, objectives of the study, methodology and chapter scheme.

Chapter-2: Company profile and industry profile

This chapter includes brief analysis on the banking industry as a whole and descriptive
overview of the company profile.

Chapter-3: Theoretical overview

This chapter includes introduction, meaning and types of loans, advances , lending
practices and its recovery system in detail.

Chapter-4: Analysis and interpretation

This chapter includes data analysis and interpretation of the collected data , which
is most important part of the project report.

Chapter-5: Findings, suggestions and conclusion

This chapter includes findings and suggestions and conclusion of the study on the basis of
the interpretation made in the previous topics. This chapter also contains the bibliography
and the annexure part.

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CHAPTER – 2
INDUSTRY PROFILE
COMPANY PROFIME

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INDUSTRY PROFILE

1.1 INTRODUCTION:

Banking in India has its origin from the Vedic. It is believed that the transit in from
money lending to banking must have accrued even before “Menu” the great Hindus Jurist
who has devoted a section of his work to deposits and advances and laid down rules
relating to rates of interest.

In the present scenario, service sector plays an important role in the country. Among
service sector banking is one which plays a vital role in economic development. The
liberalization and economic references allowed banks to explore new business
opportunity rather than generating revenues from borrowing and lending.

The banking industry was regulated by “The Indian banking Regulation Act” of
1949,It defines a Banking Industry as “Any industry which transits banking business in
India”. Banking means “Accepting for purpose of lending all investment of deposits of
money from the public repayable on demand or otherwise and withdrawal by cheque or
demand draft”.

During the mogul period, the indigenous bankers played a very important role in
lending money and financing foreign and commerce. During the days of the East India
Company, it was the turn of the agency houses to carry on the banking business. The
general Bank of India was the first joint stock Bank to be established in the year 1786.
The others, which followed were the bank of Hindustan and the Bengal Bank.

According to Sir John Paget, “No person on body corporate or otherwise can be a
banker who does not take the following:

i. Deposit accounts
ii. Current accounts
iii. Issue and pay cheques
iv. Collect cheques, crossed and non-crossed, for his customers.

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In the first half of the 19th century the East India Company established three
banks; the Bank of Bengal in 1809, the Bank of Bombay in 1846 and the Bank of Madras
in 1843. These 3 banks also known as presidency Banks were independent units and
functioned well. These 3 banks were amalgamated in 1920 and new bank, he imperial
Bank of India was established on 27th January 1921. With the passing of the State Bank
of India Act in 1955 the undertaking of the imperial bank of India was taken over by the
newly constituted State Bank of India.

The Reserve Bank, which is the central, was created in 1935 by passing Reserve
Bank of India Act 1934. In the wake of the Swedish movement, number of banks with
Indian Management were established in the country namely, Punjab National Bank
Limited, Canara Bank Ltd., Indian bank Ltd. On July 19th 1969, 14 Major banks of the
country were nationalized and in 15th April 1980, 6 more commercial private sector
banks were also taken over by the government.

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

Public Sector Bank:

1. State Bank of India and it’s associate banks called the state bank group
2. 20 Nationalized Banks
3. Regional Rural Banks mainly sponsored by public sector banks

Private Sector Banks:

1. Old Generation private banks


2. New Generation private bank
3. Foreign Banks in India
4. Scheduled co-operative Banks
5. Non-scheduled Banks

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Development Banks:

1. Industrial Finance Corporation of India (IFCI)


2. Industrial development bank of India (IDBI)
3. Industrial credit & Investment Corporation of India (ICICI)
4. Industrial Investment Bank of India (IIBI)
5. Small Industrial development Bank of India (SIDBI)
6. SCICI Ltd
7. National Bank for Agriculture and Rural Development (NABARD)
8. Export Import Bank of India
9. National Housing Bank

Co-operative Banking:

India is a country where agriculture is still a predominant activity. Our farmers


by and large are poor and usually used to depend on money lenders Indigenous bankers
and financiers etc. Till 1951-52 the money lenders were providing 70% of the
requirements of farmers and thus constituted the most important source of rural finance.
However the share of Moneylenders in rural credit was reduced to 49%. This was due to
high rates of interest, dishonesty and fraudulent practices followed by the money lenders.

The cooperative Movement was started in India in 1904 with the objective of
providing finance to agriculturists for productive purpose at low rates of interest and
thereby relieving agriculturists from the chetches of the Money lenders. The co-operative
society Act of 1912 contributed to the establishment of central co-operative banks and the
state co-operative banks to provide refinance to primary credit societies which could not
mobilize funds by their own efforts.

The co-operative credit movement made food progress during and after the 1st
world of 1914-18, but during the great depression of 1929-1933, it received a serious
setback. With the out break of Second World War of 1939-45, the co-operative credit

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movement made considerable progress once again. Since then, the progress has been
maintained.

A co-operative bank promotes economic activity and provides banking facilities


and service to the rural people. The significant role of co-operative banks in the
agricultural economy imparts a lesson to commercial banks and dispels from their minds
the age old inertia and the gloom of conservatism by shifting emphasis from credit
worthiness of the purpose and from tangible security to the character of the business.

Co-operative means “ a form of organization where in persons voluntarily associate


together as human beings on the basis of equality for the promotion of the economic
interest of themselves”. So, co-operatives are characterized by voluntary association and
open membership, democratic management, limited interest on capital, education and
training equity of distribution of profits etc. “Each for all and all for each” is the
underlying principle of co-operatives. There are 2 models for co-operatives they are

 Raiffeisen Model societies


 Schulze Delitzsch model societies

Raiffeisen societies are a type of rural co-operative societies. The main principles of
these societies are

 Restricted membership to rural masses


 Limited area of operation
 No share capital
 Unlimited liability of the members
 The management of the society is honorary

Schulze Delitzsch societies are a form of urban credit societies. The main
principles of these are

 Membership is open to artisans, middle class people


 Living in towns and cities
 Large area of operation
 Limited liability of members

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 Large share capital

So, co-operative came as an answer to the problem of rural indebtedness which was
rampant through act the country during the later decades of 19th century. It was an
official remedy to be introduced on a voluntary basis, with the principles of self-help,
thrift and mutual co-operation. This was supposed to be the beginning of genuine Indian
co-operative movement. So the objective of co-operative movement is actively
implementing socio economic program with the ultimate aim of uplifting the living
standard of economically backward and weaker section of society.

In 1919 the government of India Act 1919 was passed and co-operation became a
state subject. So several states passed their own acts for the development of the co-
operative movement in their respective states. Through the co-operative movement in
India was born at the beginning of century as an instrument of dealing with agricultural
indebtness, it was only after attaining independence that attaining independence that
attention was paid in a big way to this issue. After independence the co-operative
movement received added support from Government.

So to sum up, the co-operative movement has made remarkable progress in terms of
number, membership share capital and working capital. The progress of co-operative
movement has been remarkable in the fields of agricultural credit, marketing and supply
of farm inputs and processing.

The Indian co-operative banking system is a 3-tier system. If consists of three


sectors.

1. Primary credit societies at the base


2. Central co-operative Societies in the middle
3. State co-operative Banks or Apex Banks at the top.

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Primary Credit Societies

It is an association of ten or more persons residing in a particular locality. The


funds at primary credit societies consist of entrance fees, share capital, Reserve fund,
Fixed Deposits from members and non-members and loans from central co-operative
banks. The primary credit societies extend short and long term loans to the members.
Generally, loans are given for a period of 6 months, one year and 2 years. Loans are
ordinarily given, on personal security of borrowers supported by personal security of
borrowers supported by personal.

Central Co-operative Banks

The primary credit societies failed to mobilize enough deposits from their
members for meeting their requirements. They were in need for refinance from some
agency. So the co-operatives societies Act of 1912, provided for the establishment of the
central co-operative Bank to provide finance to primary credit societies.

Central co-operative banks are federation of primary credit societies operating in


a specific area. Generally they are located in the district head quarters and some
prominent towns of the district. The funds of central co-operative Banks consist of share
capital, reserve funds, deposits from members and non-members and loans and advanced
form state co-operative Banks. Some times they raise loans from commercial banks also.

State Co-operative Banks

Every state has a state co-operative Bank at the top of the co-operative banking
structure. If is known as Apex Bank as it controls and co-ordinates the working of all co-
operative credit institutions in the state. If is found in the state capital. The table 1.1
shows the co-operative credit structure in the whole state of Karnataka.

The funds of the state co-operative Banks consists of share capital, reserve funds,
deposits from members and general public and loans from RBI, state Government and
commercial Banks. However loans and advances from the RBI constitute a major part of
their funds.

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District Central Co-Operative Bank (DCC Bank)

Primary co-operative credit societies in a particular area, generally a district,


federate and form a district central co-operative bank. Generally the DCC bank located
of the head quarters of the district. Some DCC banks have branches in some towns in the
particular district. The DCC Banks are of two types. In one type of DCC Banks the
membership is confined to primary societies only. This type is therefore known as
“Banking Union”.

In the case of the second type of the DCC banks, there is mixed membership
consisting of both primary societies and individual possessing some financial status as
influence, some special business capacity and experience in the field of co-operative
banking. The presence of some of these individuals in the DCC banks and thus on their
board of management is deemed necessary because the organization and working of DCC
Banks is supposed to be complex. And the representatives of primary societies on the
board of management of DCC Banks may not have the necessary ability and experience
required running the DCC Bank efficiently and thus inspiring confidence in the mind of
the public.

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Table 1.1 The District Co-Operative Credit Structure in the Whole State of
Karnataka for the Year 2004-05.

SL.NO PERTICULARS SCB DCCB PACS

1. Number 1 22 4532

2. No. of Branches 30 628 -

3. No. of staff 498 4931 10567

4. Total Membership 79 34645 5549000

5. Borrowing Membership 79 5234 873793

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Board of Directors

1. Shree Vishwanath patil President

2. Shree Manjunath Siddapur vice-president

3. Shree C.Ningaraj chief Secretary

4. Shree halappa Achar Director

5. Shree Manohar Maski Director

6. Shree Sharanegowda Bayyapur Director

7. Shree Ramesh vaidya Director

8. Shree Rajashekhar Nayak Director

9. Shree K. Sharanappa Director

10. V Pampanagowda Badarli Director

11. Shree Hanumanth reddy Halli Director

12. Shree appanagowda K. Director

13. Muniyappa H. Director

14. Shree hanumanagowda Patil Director

15. Shree R. Thimmayya Shetti Director

16. Shree Jabbar Baig

17. Shree Narayana Raju Spl. Guest (NABARD Raichur)

18.Shree Mahadevayya Spl.Guest (DGM Bak Ltd( B’lore)

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COMPANY PROFILE

Introduction:

The RDCC (Raichur district co-operative central bank) was been established in
the year 1919. In between the Krrishna and Tungabadra River middle place Raichur and
Koppal district has its 18 branches and 215 VSSBN agencies (Vyavasaya seva sahakari
bank niyamita).

The RDCC bank has a huge working capital of Rs. 28283.53 lacks and has lent
loans of Rs. 17209.22 lacks already and has gained satisfaction of the customer through
the effective service.

The branch of Sindhanur has been started in the year 1921. It is the one of the
major branch of RDCC bank and has the highest record as compare to the others of
Raichur district. The Sindhanur branch has lended the loans of Rs. 50 crore, among
which 35 crore in agriculture loan remaining in non agriculture.

The RDCC bank not only a lending bank but it also has the facility of different
accounts like savings A/c, Current A/c, and also the Fixed deposits A/c apart from this
bank offers a special scheme called as “YASHASHWINI” health insurance scheme for
the members of the VSSBN, with just an annual fee of Rs 150 for each person which can
be extended to is whole family.

The RDCC bank also offers a special card called “KISAN CREDIT CARD” for
the formers who taken loan under this card the loan amount will be transferred and the
interest will be charged only to the amount withdrawn.This is one of the unique services
of this bank.

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COMPANY PROFILE:

The RDCC bank is a state government bank which deals as per the instructions of
RBI. The bank does not have any other promoters but the bank collects funds from the
NABARD bank. Through the help of APEX bank. The Sindhanur branch has the
following chair persons.

Mission of the bank:

While working on co-operative principle’s to mobilize recourses and provide


loans to all borrowers with more focus on micro finance and NFS has also to provide
modern banking services so has to bring about economic development along with social
welfare of its members and to achieve its own viability.

Different services of RDCC bank:

 Providing loans is two categories agricultural loan non agricultural loan.


 Crop loan, Irrigation loan, forestry loan, pond loan, Godown loan, tractor loan etc.
 Gold loan, SME loan, home loan,etc
 Kisan credit card for the formers.
 Yashashwini health insurance for the members of the VSSBN
 Low rate interest rates and safe deposit locker facility. Etc

Different Accounts facilities

 Saving A/c
 Current A/c
 Recurring deposit A/c
 Fixed deposit A/c

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Company mile stones:

a. Minimum NPA’s only just 3%

b. Highest growth rate of 22%

c. 2008-09 maximum recovery (93%) and good service Award.

The different products of RDCC banks are

1. Agriculture and non-agriculture loans


2. Jeevan Jyothi term deposit scheme and locker facilities.
3. Yashasvini yojane scheme
4. Different accounts
Savings A/c

Current A/c

Recurring deposit A/c

Fixed deposit A/c

5. Swarozgar credit cards for small business men


1. Agricultural loan
Agricultural loams are provided by the RDCC bank

The agricultural loans includes the followings

A) short term loans


B) medium term loans
C) long term loans

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A) Short term loans:

these loans refers to the loans which are landed for the period of one year these
loans includes the following categories

 Kisan credit card


 Crop loan
 Cattle loan
 Tractor loan
 Kisan credit card
It’s a type of credit card offered by the RDCC bank to the former who took loan called
Kisan credit card loan

Features of Kisan credit card

 This card is only for the former who took loan


 In this card only the loan amount is credited
 The interest is charged only on the amount withdrawal from credit card

Crop loan: The crop loan is given to former on the security of the land to purchase the
seeds and to incur the expenditure on production of crop.

Cattle loans:
The cattle are a special loan lended by the RDCC bank which is helpful to the
former to purchase cattle like bullocks etc.

Tractor loan:
The RDCC banks provides financial support in purchase of the tractor for the
former at a lower interest rate. Its intention is to help former to develop their yielding.

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B) Medium term loans:-

These loans refers to the loans which have been landed for the period above one
year to below ten years

These categories of loans include the following

 Pond construction loan


 Pump set loan etc.

C) Long term loans:

These are the loans which are landed for the period of ten years are to be called as
long term loans

 Godown construction loan


 Agriculture implements loans
 Rural development scheme
 Irrigation loans

Interest rates for the Agriculture loans

The RDCC bank is an a government organization which offers the different


Agriculture loans, the interest rate for the Agriculture loan is 11% but the government
itself pay 8%to the bank and remaining 3%only the interest charged by bank on loans.

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2. Non Agriculture loans:


Apart from the Agriculture loans the RDCC offers non agriculture
loans like the followings.

a.)House loans

b)Small term marketing loan

c) Educational loan

d) Gold loan

e)Vehicle loan

a) House loan:
The RDCC bank offers the house loan at lower interest rates, the borrower
of the loan must have to pledge the documents of the house.

Procedure for getting House loan

 Account open in the bank


 Surety of existing account holder in the same bank
 Security (land documents)
 The house loan will be sanctioned
 The interest rate for the loan 11.50%

b) Small term marketing loan:


These are the loans provided by the bank to small scale businessman’s to
develop their business.

Procedure for getting Short term marketing loan

 The account should be opened in RDCC bank


 They need to submit 3 years balance sheet as well as p&l account
 Surety of an existing account holder in that bank

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 The loan will be sanctioned within 5-10 days


 The rate of interest for this loan is 10.50%

c) Educational loan:
The RDCC bank also offers the educational loan to the students, the
educational loan limit upto 5 lack rupees. The intention before providing
educational is to help the students of the rural areas is the motive of this loan.

Procedure for getting educational loan:

 The loan taker must have an account in the RDCC bank


 He need to submit his marks card to the bank
 Surety can also be needed, and also the security
 The interest rate charged for the educational loan is 13.00%

d) Gold loan:

The bank offers the gold loan also in order to fulfill the needs of the
customers. The bank charge interest at 12% for gold loan

d) Vehicle loan
The RDCC bank help the people who desire to own a vehicle by providing
them financial help through the vehicle loan.

These are the various loan scheme offered by RDCC bank under the category of
agricultural loan.

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2: Jeevanjyothi term deposits scheme and locker facility

This is a term deposit scheme offered by the RDCC bank, in this scheme the
interest rate will be given at 6% P/A. they offer compound interest for this scheme.

Ex: if a person invested Rs 1 lakh after one year he will get 106000 Rs if he will
invest for two years he will get interest on the whole amount means including the interest.

Locker facilities:

One of the main features of this bank is the safe deposit locker facility offered in
all the branches.

3: YASHASWINI YOJANA SCHEME

The RDCC bank offers a special scheme called as Yashaswini Yojane scheme
under this members of VSSBN ( Vyavasaya Seva Sahakari Bank Niyamith) has to pay
150 Rs annually and they will get benefit of medical fees while in case of claims. The
scheme was promoted by the government of India to protect the formers against the
diseases.

The formers of Raichur district will get benefit of medical facility in the following
hospitals

i) Rajeev Gandhi Hospital Raichur (OPEC)


ii) Annadaneswari Hospital Sindhanur
iii) R G Patil Eye Hospital Sindhanur etc.
The members have to renewal the scheme by paying Rs 150 annually.

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4: Different accounts :

Not only had the above loans the RDCC also offered the following accounts

i) savings account
ii) current account
iii) recurring deposit account &
iv) fixed deposit account

i) Savings account:
The people use to open the saving account to maintain their savings. For
opening of this account the following steps are to be followed.
Procedure of opening saving accounts:

a) They must submit election ID or Photocopy to bank


b) Ration card need to submit
c) two photos with filled form
d) Signature of the existed account holder of that bank
e) Nominee name compulsory
f) Minimum balance is Rs 250
g) Interest rate is 3.50%

ii) Current account:


The businessman use to open this account in order to deal their business
transactions. To open this account the same procedure is to be followed as savings
account opening

The account opening charge is 5000 Rs.

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iii) Recurring Deposit account:


This is also a kind of account under this account the special option is given
like the account holder can withdraw 50 times in a month through bank.
 The same procedure is followed to open this account as like savings account.
 The minimum 10 Rs balance should be maintained in account
 Nominee is also compulsory in this account.

iv) Fixed deposit account:


This is a long term deposit account. Under this account the good rate of
interest is given. The opening of this account is same as savings account. The
following interest rates are to be allowed for fixed deposit (applicable from
22/10/2009)
Sl No Instructions Rate of interest

1 Fixed deposit account -

2 30 to 45 days 5.00%

3 46 to 90 days 5.50%

4 91 to 180 days 6.50%

5 181 to 1 year 7.00%

6 1 to 2 year 8.50%

7 2 to 3 years 8.50%

8 3 and above years 8.25%

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5: Swarozgar credit cards for the small businessman’s

The RDCC banks offers a special scheme called Swarozgar credit cards scheme
under this scheme the person who have got the credit has a option like as the use so the
interest. It means is that the loan amount will be transferred in that credit card the interest
will be charged only the amount withdrawn by the user of that card.

The organization wants to help the government by the providing loans to people
and removal of unemployment problem.

The RDCC also has a scheme like Swasahayak gumpu yojane. Under this
scheme the bank give loans to the youths usually the members of SJSRY ( SWARN
JAYANTHI SWAROJGAR YOJANE) from that they will earn some thing return to
the bank if they wont earn also bank wont allow interest on the such loan. After earning
again that earned amount is lended to others from that they recover and distribute among
the members of such group.

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CHAPTER-3

THE THEORIOTICAL OVERVIEW

OF

LOANS AND ADVANCES

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INTRODUCTION

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution
of financial assets over time, between the lender and the borrower.

In a loan, borrower initially receives or borrows an amount of money, called the


principal, from the lender, and is obligated to pay back or repay an equal amount of
money to the lender at a later time. Typically the money is paid back in regular or partial
repayments, in an annuity, each instalment is the same amount.

The loan is generally provided at a cost, referred to a s interest on the debt, which
provides an incentives for the lender to engage in the loan. In a legal loan, each of these
obligations and restrictions is enforced by contract, which can also place the borrower
under additional restrictions known as loan covenants. Although this article focuses on
monetary loans, in practices any material object might be lent.

Acting as a provider of provider of loans is one of the principal tasks for financial
institutions. For other institutions, issuing of debt contracts such as bonds is a typical
source of funding.

CONCEPT OF LENDING

Meaning of Loans

A loan is a kind of advance made with or without security. In case of loan, the
Bank makes a hump sum payment to the Bank makes a hump sum payment to the
borrower or credit his saving a account with the money advance .It is given for a fixed
period at an agreed rate of interest; repayment may be in instalment or entire amount of
period

Principles of Lending

As we have observed majority of co operative Bank Fund are employed in the


form of loans and advances loans bring good money to the Bank in the form of profit by
charging interest. Lending activity of a co-operative Bank is reciprocal activity in the

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sense Bank gate profit and the loaners get the benefit by getting money required for their
actives particustry trade industry and agriculture are benefited to a greater extent. The
wheels of industry cannot run without Bank advance but Banks Should asserts the
conditions of industry or trade or any business enterprises while making advances these
principles are explained brief.

Liquidity:-

It means the ready convertibility of advance in to cash to meet the customers


demand across the counter, this does not mean that they should hold all the deposits they
receive in the form of cash only a portion is held to meet the demand and major portion is
lent while making such loans the Bankers Should bears in the mind that it is easily
convertible into cash without loss hence, he should make loans in short term nature.

The secret of Banking consists in knowing the difference between a mortgages


and bill of exchange this statement clearly indicates that when a Bankers lends against
mortgage the Bank funds will be looked up for a long time and the liquidity loss ground,
where as when it lends against a bill of exchange the liquidity concept is take role of and
the Bank will be getting back money in a short period.

Even the Bank balance sheet prepared according to the liquidity concept. Cash
appears as the first sheet but the percent of cash hold the total funds is less as Banks
believe by experience that the total major portion can be employed in the lending they
must keep in mind the point of liquidity i.e.,. Ready convertibility of earning assets (loans
and advances) in to cash without loss to the Bank when get rediscounting facility from
the RBI have to consider the facility of the borrowing Bank considering all these factors
the lending activity of a Bank should be governed by liquidity principle

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Profitability:-

It Means earning profit on the assets acquired. Assets have refers to the Bank
loans and advance whenever the Bank obtains deposits they have to pay interest to share
holders of the Bank should receive some return on their investment.

It is the responsible of the Bank that it should receive some return on their
investment. It is the responsibility of the Bank management to leave some surplus
declares dividend to share holders hence Banks have to make profit in the process of
making profit Banks cannot employ all the funds in earnings assets.

They have to keep some funds in earning assets. They have to keep some funds to
meet liquidity hence the Banker should always decide the quantum of funds to be
employed in the liquidity situation while employing in the funds the Bank should keep in
Mind the study return on earnings assets

Safety:-

Safety is another principal to be born in mind while employing the funds are not
safety employed Banks cannot survive. Whatever be the advance made by the Bankers
should come back to the Bankers with in stipulated time without restoring to legal action.
Hence the advance as for as possible should be made only to people who are for repaying
the Bank loan honesty insincere and dishonest people should not be given loan.

Diversification:-

Another important principle to be followed by the Bankers is to see that loans and
advances are spread to different categories. This means that advances should not be
concentrated in only on sector. Every advance is risky advance and this can be
distributed, if advances are made in different categories to large number of people
scattered in a wide area. Hence while lending: the Banker should keep in mind the
concept of diversification

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Object:-

The object of advance is also another principle to be borne in mind by the Banker
while making advances, if he advances for unproductive purposes like consumer credit,
speculation etc, the repayment of loan may be delayed and recovery will be slow. On the
other hand, the fund will come for productive purposes like industry, agriculture or trade,
the fund will come back quickly and write out any difficulty because these organizations
get back money by selling their products and this cash inflow in the organization will
facilitate them to repay the Bank advances, thus the object of advance is also a guiding
factor in lending

Security:-

Another guiding factor in Bank advance is security when the Banker Advances
without security he will run the risk of losing the money of the loaner is prompt in
repayment then there will be no worry. But it is essential that the Banker should have
substantial security for advancer and not security offered is assuming importance,
however traditional thinking still prevails

The Banker is not advancing without sufficient security because he will be


managing the public money and of the confidence of the public is lost, there will be run
on the bank. Hence the Banker will not advance without sufficient. The security should
cover the money advanced interest there on and other charges. Thus the Banker should
also bear in mind security principle while lending.

Public policy:-

The Banker should keep in mind the national policies and programs while
lending. The government takes up several welfare measures and activities relating to
economic growth. The lending should fall in line with these government programs. This
principle is well considered only after nationalization of commercial Banks.

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Loan schemes:

They offer a whole range of customer friendly, convenient for your varied needs.

1.Agriculture and non-agriculture loans


2.Jeevan Jyothi term deposit scheme and locker facilities.
3.Yashasvini yojane scheme

EVALUATING OF APPLICATION

The credit evaluation process involves three steps i.e, gathering information about the
credit of the applicants and finally taking a decision to grant lending facilities.

A) Gathering Credit Information:-

Two important factors should be born in mind while going for credit information i.e.
cost and time. A Bank cannot afford to spend a lot of money in investigating some loan
applicants particularly the smaller one’s in such cases the credit officers should take a
decision on the basis of limited information available to them about the applicant. Further
how much time the credit department should spend on an analysis of the credit
worthiness of an applicant must also be considered, spending a lot of time on there are a
number of sources of credit information that would enable the Banks to determine the
credit worthiness of the potential borrowers. Their use will depend upon the nature of the
business of the applicant, the form of loan required and the amount of the loan requested.

B) Credit Analysis:-

After assembling the credit information of the potential customer, the lending officer
analysis it to evaluate the credit worthiness of the applicant and to determine whether he
is up to the standard or mot, such an analysis is called “credit analysis”. A credit analysis
incolves the credit investigation of a potential customer to determine the degree of risk

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associated with the loan. The capacity of the applicant to borrow and his ability and
willingness to repay the debt in accordance with the terms of the loan agreement must be
studied. An analysis for the credit worthiness of the applicant, therefore cash for a
derailed investigation of the five ‘c’s of credit

1) Character
2) Capacity
3) Capital
4) Collateral
5) Conditions.

C) Decision Making:-

This is one aspect where the Bank officers after gathering information and analyzing
the credit worthiness of an applicant, take a decision whether to entertain the application
for the sanction of the loan as required by the applicant, The Bankers should also try to
introspect the mental and morel quality, integrity, fairness, responsibility, temperance,
trust worthiness etc., of an applicant, the borrower must be in a position to make the best
of the available sources and to earn faith amount of profit after meeting the other
obligation, Bankers before making a commitment should bear all these aspects in mind
and should never take a decision at all levels of sanction will definitely help the Bank to
grow.

3. Organization of Bank Lending:

The responsibility of formulation a loan policy for a Bank and its implementation
lies with the board of directors. Since the members of the board are pre-occupied with
other activities, they do not attend to the day lending activities of the Bank; instead, they
constitute a separate lending body, generally known as credit department to carry out the
process and the process and policy of lending.

Functions that generally preformed by credit department can be classified as follows

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1) Receives loan applications from different branch heads


2) Collects credit information about the applicant from different sources and
conducts interviews with the applicant to verify the knowledge he has for the
project for which he seeking loan
3) Investigates the credit worthiness of applicant by making use of numerous tools of
credit analysis
4) Once the loan has been granted it supervises loans by visiting the borrower.
Keeping constant vigil on their business performance, obtaining their stock
positions in regular intervals if the loan is secured by stock in trade.
5) Maintain records of credit information and receive them constantly so that the
bank officials may to know the status of their accounts
6) it furnishes credit information to other bank and creditors who seek it to avoid
duplication of funding for the same purpose

The banks with a large number of branches, the lending organization has to give
sanctioning authority to the branch managers of respective branches to a certain limit.
Anything more than that limit regional manager will be given sanctioning authority if the
quantum of amount of loan applied over the delegated power of branch manager and
regional manager, the application will be forwarded to head o0ffice for sanction.

For expedition’s disposal of credit requests, it is desirable to delegate more


powers to branch regional levels. Borrowers particularly those requesting for small
amount of loans cannot be expected to wait for a long time for release of loan. More than
anything, personal touch with the borrowers is most essential factor for the development
of the Banking business.

Financing through loan:- important consideration

Loan agreement – terms and conditions

Loan is generally governed by an agreement, which mainly elaborates terms and


conditions on the following issues:

 Drawl of loan(including commitment fee on drawn portion of loan)

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 Grace period
 Repayment schedules
 Rate of interest and its payment
 Security of loan
 Restrictive covenants
 Other terms relating to : non-refundable upfront fee of specified percentage of the
limit: conversion of debt into equity: promoter’s contribution, sourcing of
equipment: and so on.

The availability of a loan at suitable terms depends upon various factors such as:

 Loan amount involved


 Maturity Period
 Genuine need/urgency of borrowers
 Visibility of project
 Debt capacity of borrower
 Integrity of borrowers
 The existing status of capital market: Financial position and integrity of borrowers
may be judged from various documents such as Income Tax Returns of Earlier
years, Bank saving books/receipts, property returns, etc., Relaxation in any terms
and conditions of loan depends on the examination of this documentary evidence.
Repayment period is allowed as per prescribed norms and this includes an initial
moratorium of specified period.

The security against loan may consist of:

 First charge by way of hypothecation of the equipment/ stocks and other assets
procured under the loan agreement in favor of lending agency.
 Extension of charge on existing assets, if any.
 Personal Guarantee of the promoters/directors
 State government guarantee.

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 Irrevocable Bank guarantee from scheduled Bank of the amount being released in
installments. The Guarantee may be on reducing basis linked to repayments.

A project my go for different loans, each with varying interest rates and tenures
specifically structured to suit the cash flow of the project.

Preliminary and pre-operative expenses are generally not taken as a part of the cost
of the project.

It is not prudent to project unrealistically higher cash profit in the initial years of
project operation as this might lead to fixing shorter repayment time scheduled by the
lenders. In such cases, if there is cash deficiency in the initial years and the borrower find
it difficult to honor his loan obligation on due dates, it would put on him an extra
financial burden and in some cases, even a request for a moratorium period may not be
entertained by the lender. Some financial institution provide a specified percentage of
credit linked subsidy or a specified percentage of interest charged in respect of rupee
loans. The economic life of the proposed project may also influence fixation of payment
schedule under a loan agreement Grace Period may be granted by the lender, if the
projected cash flow position in the initial years is not sound. However, it all depends
upon the accuracy of cash flow projections as well as on the genuine need of the
borrower.

In some of the loan agreements, flexibility is allowed to project requirements. A small


fee (specific percentage of loan, generally about 1% p.a.) Known as ‘commitment Fee’ is
charged on the undisbursed / undrawn portion of loan. In case loan agreement provides
for drawl of complete loan by the specified period , it becomes essential to draw plans at
the agreement finalization stage itself for the investment of surplus fund, if any which
would remain in hand at any stage of project execution. The timing liquidation of
temporary investment of surplus fund should match with the fund utilization plan.

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LENDING CONCEPT

RDCC like any other government or private sector commercial Bank lends, to
priority and non priority sectors.

1. Priority Sectors:-
The priority sector consists of following areas:
1) Agriculture and allied sector is primary sector.
2) A small scale sector is secondary sector.
3) Service sector / territory sector like
A. Retail trade
B. Small business
C. Small road transport operators
D. Professional and self employed
E. Rural artisans
F. Housing loans
G. Education loan

Usually the rate of interest charged on the loans under priority sector will be less.

Agriculture/Allied Sector:-

Loans sanctioned for land based activity are classified under agriculture advance
like crop loans, Land development irrigation, Horticulture, Bullock cart. Tractor and
Over sprays, Tillers loans and Power filler.

Loans sanctioned for non-agriculture land based activity are called allied sector
like dairy, apiculture, fisheries etc.,

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Small scale Industries:-

Loans sanctioned to set up industries with a project cost of 25 lakhs or less is


classified under Small scale industries.

Service Sectors:-

1. Loans up to 10 lakhs for retail trade are classified under this priority
sector
2. Small business:- loans up to 10 lakhs from small business are
classified under priority sector
3. Small road transport operations loan sanctioned to acquire 2 and more
but up to 10 vehicles are classified under priority sector
4. Professional and self employed loan sanctioned to get self employment
and to professional like medical oractitioner, architecture, engineer,
advocates, c.a, are classified under this sector up to 2 lakhs
5. Housing loan:- housing loan up to 8 lakhs in urban area under this
sector
6. Education loans:- loans sanctioned to pursue education like puc,
Degree, Master Degree, or Abroad are classified under sector.

II. Non Priority Sectors:-

All other loans sanctioned to other purposes not covered under above sectors will
be classified under non priority sector. Under non-priority sector they can be classified as

1) Personal demand loan


2) Purchase of consumer durable
3) Loan to purchase 4 wheelers for self use
4) Loan to medium and large scale industry
5) Loan to large trade for business purpose
6) Housing loan other than as mentioned above
All above loans classified as short term, medium terms and long
term loans depending upon repayment period.

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1) Sort Term Loan:-

Loans with repayment period up to 3 years.

2) Medium Term Loan:-

Loans with repayment period above 3 years but up to 7 years

3) Long Term Loan:-

Loan with repayment period above 7 years.

The rate of interest depends period type of loan i.e., Priority / Non-priority, short
term / medium term / long term loan and purpose of loan.

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CHAPTER 4

DATA ANALYSIS
AND

INTERPRETATION

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TABLE NO: 4.1 .Short-term loan

Years Loan amount Recovery amount

2008-09 76510 74214.7

2009-10 1627419 1580712.10

2010-11 1920458 1865984

GRAPH NO: 4.1 SHORT TERM LOAN

Chart Title
2000000
1800000
1600000
1400000
1200000
Loan amount
1000000
800000 Recovery amount
600000
400000
200000
0
2008-09 2009-10 2010-11

ANALYSES:

From the above table shows the growth of short term loan 2008-09 was
Rs. 74214.7, 2009-10 was Rs.1580712.10 & 2010-11 was Rs.1865984

INTERPRETATION:

From the above graph represents the short term loan has been increasing
gradually as because of low rate of interest rate and good demand for it.

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Table: 4.2 KISAN CREDIT LOAN (KCC LOAN)

Years Loan amount Recovery amount

2008-09 275614608 274786170

2009-10 321877590 312639704

2010-11 210588151 205485695

GRAPH NO: 4.2

KCC LOANS

Chart Title
350000000
300000000
250000000
200000000 Loan amount
150000000 Recovery amount
100000000
50000000
0
2008-09 2009-10 2010-11

ANALYSIS:

From the above table shows the growth of KCC LOANS 2008-09 was Rs.
274786170, 2009-10 was Rs.312639704 & 2010-11 was Rs.205485695

INTERPRETATION:

As per the above graph shows an increasing trend in lending of KCC loans
it is because of attractive feature, specially the interest rate.

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TABLE 4.3 AGRICULTURE LOAN

Years Loan amount Recovery amount

2008-09 54285605 52657037

2009-10 68246270 66287602

2010-11 74562326 72563245

GRAPH NO.4.3

AGRICULTURE LOAN

80000000

70000000

60000000

50000000
Loan amount
40000000
Recovery amount
30000000

20000000

10000000

0
2008-09 2009-10 2010-11

ANALYSIS:

From the above table shows the growth of Agricultural loan 2008-09 was
Rs.52657037, 2009-10 was Rs.66287602 & 2010-11 was Rs.72563545

INTERPRETATION:

From the above graph the trend in lending of agriculture loans increasing
year by year, it is because of the low rate of interest ,and bank is mainly concentrate on
agriculture loans.

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TABLE: 4.4. SELF HELP GROUP LOANS (SHG LOAN)

Years Loan amount Recovery amount

2008-09 4849282 4703803.5

2009-10 7192734.47 6986302.5

2010-2011 11888732 10235698

GRAPH NO.4.4

SHG LOAN

12000000

10000000

8000000
Loan amount
6000000
Recovery amount
4000000

2000000

0
2008-09 2009-10 2010-2011

ANALYSES:-

From the above table shows the growth of SHG LOAN 2008-09 WAS
RS.4703803.5, 2009-10 WAS RS.6986302.5 & 2010-11 was Rs.10235698

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INTERPRETATION:

From the above graph represents increasing in the lending loans to SHG’s
because of these are getting booming in rural areas, so banks advances also increasing
over the year

TABLE: 4.5 SHORT TERM MARKETING LOAN

Years Loan amount Recovery amount

2008-09 56509870 54814574

2009-10 82795064 80418846

2010-11 95354231 93256458

GRAPH NO: 4.5 SHORT TERM MARKETING LOAN

120000000

100000000

80000000

60000000 Loan amount


Recovery amount
40000000

20000000

0
2008-09 2009-10 2010-11

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ANALYSIS:

From the above table shows the growth of SHORT TERM MARKETING
LOAN 2008-09 was Rs.54814574, 2009-10 was Rs.80418846 & 2010-11 was
Rs.93256458

INTERPRETATION:

From the above graph represent the short term marketing loan was
increasing year by year. It will effect to growth of the bank.

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TABLE 4.6 RURAL GODOWN LOAN

Years Loan amount Recovery amount

2008-09 11506123 11160939

2009-10 21056594 20452270

2010-11 24920004 23105066

GRAPH NO: 4.6

RURAL GODOWN LOAN

25000000

20000000

15000000 Loan amount

10000000 Recovery amount

5000000

0
2008-09 2009-10 2010-11

ANALYSIS:

From the above table shows the growth of RURAL GODOWN LOAN
2008-09 was Rs.11160939, 2009-10 was Rs.20452270 &2010-11 was Rs.23105066

INTERPRETATION:

From the above graph represents the growth in Rural godown loan, as
because the duration of repayment and interest rate are better than other’s one.

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TABLE: 4.7 SALERY EARNERS LOAN

Years Loan amount Recovery amount

2008-09 3538119.4 3431975.8

2009-10 4390071.28 4264076.2

2010-11 5169137.61 5012657.00

GRAPH NO: 4.7

SALERY EARNERS LOAN

6000000

5000000

4000000

3000000 Loan amount


Recovery amount
2000000

1000000

0
2008-09 2009-10 2010-11

ANALYSIS:

From the above table shows the growth of Salary earners loan 2008-09
was Rs.3431975.8, 2009-10 was Rs.4264076.2 & 2010-11 was Rs.50126557

INTERPRETATION:

From the above graph represents the SALERY EARNERS LOAN


increasing smoothly. It will effect to growth of the bank.

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TABLE: 4.8

GOLD LOAN

Years Loan amount Recovery amount

2008-09 5631685 5462734.5

2009-10 7454385 7240444.2

2010-11 16576532 14401630

18000000
16000000
14000000
12000000
10000000 Loan amount
8000000 Recovery amount
6000000
4000000
2000000
0
2008-09 2009-10 2010-11

ANALYSIS:

From the above table shows the growth of GOLD LOAN 2008-09 was
Rs.5462734.5, 2009-10 was Rs.7240444.2 & 2010-11 was Rs.14401630.

INTERPRETATION

In this area the bank is financing very low as because the private banks
and financial institutions are offering more attractive features and interest rates .

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A STUDY ON LENDING PRACTICES OF RDCC BANK, SINDHANUR

TABLE: 4.9 HOUSING LOAN

Years Loan amount Recovery loan

2008-09 2506135 2430951

2009-10 3561095 3458891.6

2010-11 4171644 4060530

GRAPH NO: 4.9 HOUSING LOAN

2010-11

2009-10 Recovery loan


Loan amount

2008-09

0 1000000 2000000 3000000 4000000 5000000

ANALYSIS:

From the above table shows the growth of Housing loan 2008-09 was
Rs.2430951, 2009-10 was Rs.3458891.6 & 2010-11 was Rs.4060530

INTERPRETATION:

The lending loan for the Housing is quite lower in this bank as it mainly
concentrate on agricultural loans and particularly high interest rate on housing loan.

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A STUDY ON LENDING PRACTICES OF RDCC BANK, SINDHANUR

TABLE : 4.10 LIQUIDITY SOCIETES

Years Loan amount Recovery amount

2008-09 425069 412316.93

2009-10 325069 315739.52

2010-11 Not available Not available

GRAPH NO: 4.10 LIQUIDITY SOCIETES

450000
400000
350000
300000
250000
Loan amount
200000
Recovery amount
150000
100000
50000
0
2008-09 2009-10 2010-11

ANALYSIS:

From the above table shows the growth of LIQUIDITY SOCIETES 2008-
09 was Rs. 412316.93 and 2009-10 was Rs.315739.52

INTERPRETATION:

From the above graph represents the decreasing in lending loans to


Liquidity societies, due to the high rate of interest.

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A STUDY ON LENDING PRACTICES OF RDCC BANK, SINDHANUR

TABLE: 4.11 PETTY TRADERS LOAN

Years Loan amount Recovery amount

2008-09 0 0

2009-10 959216.50 866081.99

2010-11 1092162.50 1082156.30

GRAPH NO: 4.11 PETTY TRADERS LOAN

1200000

1000000

800000
Loan amount
600000
Recovery amount
400000

200000

0
2008-09 2009-10 2010-11

ANALYSIS:

From the above table shows the growth of PETTY TRADERS LOAN
2008-09 was Rs.0, 2009-10 was Rs.866081.99 & 2010-11 was Rs.1082156.30

INTERPRETATION:

As per the above graph the lending of loans to petty traders increased, in
this area the bank lending loans to rural unemployed youth people under the scheme of
SJSRY, so the ratio of this scheme enhance.

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A STUDY ON LENDING PRACTICES OF RDCC BANK, SINDHANUR

TABLE: 4.12 LOANS ON DEPOSITS

Years Loan amount Recovery amount

2008-09 3823199 3708503

2009-10 8540526 8295412.9

2010-11 9354752 9032568

GRAPH NO: 4.12

LOAN ON DEPOSITS

10000000
9000000
8000000
7000000
6000000
Loan amount
5000000
Recovery amount
4000000
3000000
2000000
1000000
0
2008-09 2009-10 2010-11

ANALYSIS:

From the above table shows the growth of LOAN DEPOSITS 2008-09 was
Rs.3708503, 2009-10 was Rs.8295412.9 & 2010-11 Rs.9032568

INTERPRETATION:

From the above graph represents the growth in lending of loans, this is
because the attractive interest rate on deposits.

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A STUDY ON LENDING PRACTICES OF RDCC BANK, SINDHANUR

TABLE:- 4.13 NPA OF THE BANK

Years NPA

2008-09 3%

2009-10 2.87%

2010-11 2.56%

NPA OF THE BANK

NPA

3%
3%
3%
3% NPA
3%
3%
2%
2%
2008-09 2009-10 2010-11

INTERPRETATION:-

The NPA component of any bank is very essential aspect to know the banks healthy
condition. As we saw from the above graph their will be considerable down in NPA ratio
from the year 2009 to 10’ and this shows that in the bank there is good recovery system is
working.

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A STUDY ON LENDING PRACTICES OF RDCC BANK, SINDHANUR

CHAPTER – 5

FINDINGS AND SUGGESTIONS

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A STUDY ON LENDING PRACTICES OF RDCC BANK, SINDHANUR

FINDINGS:-

While doing the project we found the following facts.

1. RDC bank mainly focuses on Agricultural loan.

2. The Advertisement of their products were given very less.

3. The bank doesn’t offer the ATM and anywhere banking facilities.

4. The customers of bank are fully satisfied with agricultural loan, specially Kisan credit
Loan.

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A STUDY ON LENDING PRACTICES OF RDCC BANK, SINDHANUR

SUGGESTIONS:-

After the detailed study of the bank through the project I suggest the followings.

1. The bank has to provide ATM facilities.


2. The bank has to provide anywhere banking facilities to attract more customers.

3. The bank has to create their own website to publish the information.

4. The bank has to provide more education loan. And customer friendly environment
should be created.

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A STUDY ON LENDING PRACTICES OF RDCC BANK, SINDHANUR

CONCLUSION

I studied lending practices and other value added services of the at RDCC
bank in detail.

It was a really good opportunity for us to have a project in that bank. The
policies of the bank are very near to customer their were no vague and complication in
getting loan. When I took the project wok, after studying I came to know about overall
services of the bank, customer are fully satisfied about loan procedure as because of
lower interest rates.

The bank must give advertisements in paper, television and some other
media, so that it could be beneficial for them in attracting more customers, which would
enhance the growth of the bank.

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A STUDY ON LENDING PRACTICES OF RDCC BANK, SINDHANUR

BIBLIOGRAPHY

BOOKS :

1. Economic development of India. By H.K Krishnamurthy./SAPNA success series.


2. Banking theory and practice-Gordon And Natrajan.
3. Banking law,practice and theories –Tannan,MacGrow Hill publications .
4. Inadian banking –K.D.Basva.

WEBSITES

1. www.moneycontrol.com
2. www.google.com/banking in india.
3. www.wilkipdia.org.in/banks in india
4. www.rbi.org.in
5. www.nafed.gov.org.in
6. www.cooperativebanksinindia.com
7. www.apexbank.gov.nic.

VIJAYANAGARA SRI KRISHNADEVARAYA UNIVERSITY, BELLARY Page 60