Name- Madona Dkhar

Class- MBA 2nd - Sem

ID/Enrollment no :18FMPCMSD 01017
Topic: Loans and Advance

OBJECTIVES:
To analysis the relationship between loans and advances to its total current assets
To analysis the sources of income by considering loan and advances
To study the procedures of issuing loans and advances
To understand the banking sector to the economic growth
To understand its process
To known the problem faced by the customer when obtaining the loa

INTRODUCTION TO LOANS AND ADVANCES

Loans and advances are the most important aspect of any banking organization
.Loans is the type of dept. Like instrument , a loans entails redistribution of financials assets
over time . the borrower initially received an amount of money from the lender , which they
pay back, usually but not always in regular instalment, to the lender. This services is
generally provided at cost, referred to as interest on dept. the sum of borrowed money
(principal) that is generally repaid with interest . loan -to- value-ratio the relation between
the amount of the mortgage loan and the appraised value of the property expressed as a
percentage. Lock lenders guarantee that the mortgage are quoted will be good for a specific
number of days from day of application. Money margin , the amount of lender adds to the
index on adjustable ratio mortgage to establish the adjusted interest rate .Advance is a term
that described a secure loans made to a member .Advances are offered at fixed or floating
rates with specific maturities or with embedded option for early redemption. There are
different types of loans offered by a bank .
Different loans fetch a different rate of interest and have different securities against them:
1 Housing loans
2 Education loans
3 Personal loans
4 automobile loans
BACK GROUND OF THE TUDY :
The history of loan began … its likely that people have been practicing lending and
borrowing for as long there has been a concept of ownership. The history of loans and
advance can be documented at least several thousand year back form of lending were
evident in ancient Greek and roman times of course . it is however important to realize that
lending started much earlier than many people would imagine and has its origins in much
older times
Objective of the study :
To assess the different interest rate of different loans schemes provided by the bank.
To study different loan provide by the bank
To study the financial performance of the bank
To known the procedures followed by the society while issuing loans and advances
To knowns the customer opinion with regard loans and advance of the society
Scope of the study:
To understand the concept of loan and advance
This study is limited to only Punjab & Sind bank
RESEARCH METHODOLOGY:
1) Primary data:
Primary data are those which are collected a fresh and for the first time and thus happen to
be original in character and known as primary data.
2) data: Secondary
Secondary data are those which have been collected by some one else and which have
already have been passed through the statistical process are know as secondary data. It is a
sources of data collection from the bank, from libraries and from internet.

COMPANY PROFILES
PUNJAB & SIND BANK;
Punjub & Sind bank is a leading public sector bank and a major bank in northern
India . The bank business is taking deposits and making advance and investments and is
principally divided into retail banking, corporate banking , priority sector banking , treasury
operation and other banking services such as agency functions for insurance, distribution of
mutual fund, and pension and tax collection services. They have various deposits services
such as current, Saving, and term deposit for customers. In retail banking, the bank
provides loan and advances for housing , trade, automobiles, consumer durables, education
and personal loans . We provides commercial banking product and services to corporate
customers, Including mid-sizes and small businesses and government entities. In corporate
banking, the bank loans product includes term loans to finance capital expenditure of assets
across at various industries as well as short term loans, cash and export credit and other
working capital financing and bill discounting facilities . they also provide credit substitutes,
such as letters of credit and guarantee , They also engaged in syndication of loans provided
by other financial institutions and other fee- based services such cash management and
remittances services . In priority sector, the bank offers direct financing to farmer for
production, as well as indirect financing for development and credit to supplier of
agricultural inputs They also offer a wide range of general banking to our customers
including ATM cards, cash management, remittance services and collection services . they
also act as agent for various state government and the GoI on numerous matter including
collection of taxes and payment of salary and pension. As of July 31,2010 the bank has over
920 branch extension counters and 63 ATMs spread across the country.
was on the 24/June/1908 that the idea of elevating the poorest of the poor was initiated
by the inception of the Punjab & Sind Bank. Brainchild of Bhai Vir Singh, Sir sunder Singh
Majitha and Sardar Tarlochan Singh the bank has covered miles. Among the people of
Punjab, they have attain the highest level of respect. With the aim to help the weaker
section of the society, for uplifting their standard of living, social commitment was the main
agenda. With more then decades of experiences in the banking sector, the bank is still
striving strong. On 15 April 1980 the bank is one of the six bank nationalized by the GoI.
Thus, It the bank became GoI undertaking and the name was changes to Punjub and Sind
bank. In march 22,1986, the bank established Sutlej Gramin bank as a regional rural bank in
the state of Punjab under the name Faridkot Bathinda kshatriya Gramin bank .In July 2004
the bank in collaboration with ICIC Ibank Ltd launched the Punjab & Sind bank credit card .
The bank made a special tie -up arrangements with Aviva life insurance company India PVT
Ltd for providing their valued customers all the insurance related services under one roof.
In the annual business today -PKMG survey of best banks in India 2008, the bank was rank
number one in the list of small sizes best bank in India In June 24,2010, the first CBS branch
was rolled-out . In February ,24,2010, the bank singed a ten year contract with IT major
Wipro Ltd for comprehensive IT outsources services for the bank. In December 2010,
Punjub & Sind bank came out with the public issue of 4,00,00,000 equity shares aggregating
to Rs 470.82 crore. The fund proceeds would be utilize for business expansion .At the same
time , the bank plans to increase their Branch network from 920 to 1000 by the end of
march 2011.

Mission of Punjab & Sind Bank

1 The risk management and internal control systems should be properly placed at the right
time.
2 Highest level of technology should be adopted and operationalized as well.
3 Customer services should be at the peak of all banking responsibilities
4 The business should be conducted with transparency and the bank should be responsible
for its code of conduct.
5 The financial as well as the non-financial risks should be manages professionally.
6 Profitability should be in accordance with the prudential guidelines of the bank.