PROJECT REPORT ON “A STUDY RELATES TO ANALYSIS OF THE EFFECTIVE RECOVERY OF LOANS AND ADVANCES IN KARNATAKA BANK” “A Report submitted in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION FROM Enrolment Number: Under the guidance of




This is to certify that the PROJECT report is a bonafide work of,Enrolment No. for the partial fulfillment of the requirements for the award of the degree of Masters of Business Administration from under my guidance This project work is original and not submitted earlier for the award of any degree/diploma fellowship/ any prizes elsewhere.



I hereby declare that the Project report submitted to is, for the partial fulfilment of the requirements for the award of Masters of Business administration is a record of original report done by me under the supervision and guidance of

Place: Bangalore Date:



The successful completion of any task would be incomplete without mentioning the people who have made it possible. So it’s with the gratitude that I acknowledge the help, which crowned my efforts with success. I would also like to convey my sincere thanks to faculty of MBA department of for helping me out and showing keen interest in my project. I extend my deep gratitude to for his constant guidance and support. I would also like to thank the various department officials and staff who not only provided me with required opportunity but also extended their valuable time and I have no words to express my gratefulness to them. Last but not the least I am very much indebted to my family and friends, for their warm encouragement and moral support in conducting this project work.



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In fact. use and control of money. a broader scope so as to include in addition to procurement of funds.1 INTRODUCTION In our present day economy. In the financial analysis a ratio is used as an index for evaluating the financial position and performance of the firm. Finance management is that managerial activity which is concerned with the planning and controlling of a firms financial reserve. Based on this reasoning. efficient use of resources is universally recognized. creditors and investors. Financial analysis can be defined as a study of relationship between many factors as disclosed by the statement and the study of trend of these factors. this project is an attempt to analyze the financial performance of Universal Systems Technologies Inc.EFFECTIVE RECOVERY OF LOANS 1. Financial analysis is as the final step of accounting that results in the presentation of final and the exact data that helps the business managers. Financial management as an academic discipline has undergone fundamental changes as regards its scope and coverage. In early years of its evolution it was treated synonymously with the raising of funds. Finance refers to the management of flows of money through an organization. In the current literature pertaining to this growing academic discipline. finance is defined as the provision of money at the time when it is required. The objective of financial analysis is the pinpointing of strength and weakness of a business undertaking by regrouping and analyzing of figures obtained from financial statement and balance sheet by the tools and techniques of management accounting.BANGALORE 7 . needs finance to carry on its operations and to achieve its target. finance is so indispensible today that it is rightly said to be the lifeblood of enterprise. Every enterprise. __________________________________ SAGAR BUSINESS ACADEMY. and little significance was attached to the analytical thinking in the financial decision making and problem solving. Without adequate finance no enterprise can possibly accomplish its objectives. It concerns with the application of skills in the manipulation. whether big or small.

But the accounting figures convey the meaning when it is related to some other relative information. Kolkata.EFFECTIVE RECOVERY OF LOANS The absolute accounting figures reported in the financial statement do not provide a meaningful understanding of the performance and the financial position of the firm. India's growing stature in the information age enabled it to form close ties with both the United States of America and the European Union.2 INDUSTRIAL BACKGROUND The Indian Information Technology industry accounts for a 5. but the firms performance can be said good or bad only when net figures is related to the firm’s investment. The most prominent IT hub is IT capital Bangalore. 1. For example :. The other emerging destinations are Chennai.Rs 5 crore net profits may look impressive. making it one of the biggest job creators in India and a mainstay of the national economy. the recent global financial __________________________________ SAGAR BUSINESS ACADEMY.5 million people are employed in the sector either directly or indirectly. Accounting ratios are relation expressed in the mathematical terms between figures that are connected with each other in the same manner. Pune. However. creditors. NCR and Kochi. Hyderabad. The information contained in the balance sheet. In 2010-11.BANGALORE 8 . while providing employment to a significant number of its tertiary sector workforce. More than 2. Technically proficient immigrants from India sought jobs in the western world from the 1950s onwards as India's education system produced more engineers than its industry could absorb. profit and loss account or the income statements are used by the management. if we properly analyze the information reported in the statement.19% of the country's GDP and export earnings as of 2009.85 billion.76 billion and Philippines with $8. annual revenues from IT-BPO sector is estimated to have grown over US$76 billion compared to China with $35. India's outsourcing industry is expected to increase to US$225 billion by 2020. Mumbai. investors and others to form judgment about the operating performance and the financial strengths and weakness of the firm.

EFFECTIVE RECOVERY OF LOANS crises has deeply impacted the Indian IT companies as well as global companies. telecommunications. As an outcome of the various policies of Jawaharlal Nehru (office: 15 August 1947 – 27 May 1964) the economically beleaguered country was able to build a large scientific workforce. India developed a number of outsourcing companies specializing in customer support via Internet or telephone connections. the old avatar of the modern day IT Park. Mumbai by the Tata Group—were the country's largest software producers during the 1960s. Total fixed-line and wireless subscribers reached 543. Each year India produces roughly 500. and 7. More than 80 percent of the country's software exports happened out of SEEPZ. The first software export zone SEEPZ was set up here way back in 1973. By 2009. On 18 August 1951 the minister of education Maulana AbulKalam Azad.0% of the country's population. third in numbers only to that of the United States of America and the Soviet Union.160.000 people in the country have access to broadband Internet— making it the 12th largest country in the world in terms of broadband Internet users. a total of 506. out of them only 25% to 30% possessed both technical competency and English language skills. India also has a total of 37. India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in partnership with Burroughs. In 1968 Tata Consultancy Services—established in SEEPZ. Possibly modeled after __________________________________ SAGAR BUSINESS ACADEMY.000 engineers in the country.000 telephone lines in use. which have been growing phenomenally over the last few years. and manufacturing industries.040. As a result hiring has dropped sharply and employees are looking at different sectors like the financial service.000. 2009. although 12% of India's population can speak in English.570.000 Internet users—comprising 7. Mumbai in 80s. a total of 81. which were used in large companies and research laboratories. Formative Years (Till 1991) The Indian Government acquired the EVS EM computers from the Soviet Union.20 million as of November.000 mobile phone connections. inaugurated the Indian Institute of Technology at Kharagpur in West Bengal.BANGALORE 9 .

In the Encyclopedia of India. The inception of The Computer Maintenance Company (CMC) followed in October 1976. By 1960 as many as 10. and commercial Internet access on visible __________________________________ SAGAR BUSINESS ACADEMY.000 Indians were estimated to have settled in the US. Kamdar (2006) reports on the role of Indian immigrants (1980 . the 64 kbit/s leased line service in 1992. R. many of whom came from India. The National Informatics Centre was established in March 1975. Kapur (2006)By the 1980s a number of engineers from India were seeking employment in other countries. NICNET (the network for India's National Informatics Centre). Between 1977-1980 the country's Information Technology companies Tata Infotech. the Indian government embarked upon the creation of three wide-area computer networking schemes: INDONET (intended to serve the IBM mainframes in India).BANGALORE 10 .early 1990s) in promoting technology-driven growth: The United States’ technological lead was driven in no small part by the brain power of brilliant immigrants. Relaxed immigration laws in the United States of America (1965) attracted a number of skilled Indian professionals aiming for research. and the academic research oriented Education and Research Network (ERNET).EFFECTIVE RECOVERY OF LOANS the Massachusetts Institute of Technology these institutions were conceived by a 22 member committee of scholars and entrepreneurs under the chairmanship of N. Sarkar. The 'microchip revolution' of the 1980s had convinced both Indira Gandhi and her successor Rajiv Gandhi that electronics and telecommunications were vital to India's growth and development. Patni Computer Systems and Wipro had become visible. 1991–2001 Videsh Sanchar Nigam Limited (VSNL) introduced Gateway Electronic Mail Service in 1991. In response. the Indian companies realigned wages to retain their experienced staff. The inestimable contributions of thousands of highly trained Indian migrants in every area of American scientific and technological achievement culminated with the information technology revolution most associated with California’s Silicon Valley in the 1980s and 1990s. MTNL underwent technological improvements. Between 1986-1987.

Election results were displayed via National Informatics Centre's NICNET. Throughout the 1990s. Graduates from the Indian Institutes of Technology (IIT) became known for their technical skills. and the software industry. The Information Technology Act 2000 created legal procedures for electronic transactions and e-commerce.Wolcott & Goodman (2003) report on the role of the Indian National Task Force on Information Technology and Software Development: Within 90 days of its establishment. and management.BANGALORE 11 . In addition. The economic reforms were driven in part by significant the internet usage in the country. the Task Force produced an extensive background report on the state of technology in India and an IT Action Plan with 108 recommendations. leading to a new era of globalization and international economic integration. International Telecommunications Union (ITU). The New Telecommunications Policy. The Indian economy underwent economic reforms in 1991. another wave of Indian professionals entered the United States. This immigration consisted largely of highly educated technologically proficient workers. Economic growth of over 6% annually was seen between 1993-2002. 1999 (NTP 1999) helped further liberalize India's telecommunications sector. The new administration under AtalBihari Vajpayee—which placed the development of Information Technology among its top five priorities— formed the Indian National Task Force on Information Technology and Software Development. Indians fared well in science. It was less a task of invention than of sparking action on a consensus that had already evolved within the networking community and government. Within the United States.7 million by 2000. The number of Indian Americans reached 1.EFFECTIVE RECOVERY OF LOANS scale in 1992. universities. __________________________________ SAGAR BUSINESS ACADEMY. engineering. the Task Force incorporated the experiences of Singapore and other nations. Much of what it proposed was also consistent with the thinking and recommendations of international bodies like the World Trade Organization (WTO). central government agencies. The Task Force could act quickly because it built upon the experience and frustrations of state governments. and World Bank. which implemented similar programs.

Today. it was revealed that Cap Gemini will soon have more staff in India than it does in its home market of France with 21. The economic effect of the technologically inclined services sector in India—accounting for 40% of the country's GDP and 30% of export earnings as of 2006. Naukri. Bangalore is known as the Silicon Valley of India and contributes 33% of Indian IT Exports. Such is the growth in investment and outsourcing. India's second and third largest software companies are head-quartered in Bangalore. like TCS and well established like Reliance. LnTInfotech. Lot of companies were developed in Chennai. Jobspert etc. WNS. And Mumbai too has its share of IT companies that are India's first and largest. A joint EU-India group of scholars was formed on 23 November 2001 to further promote joint research and development. Next to Bangalore Chennai plays an important role in IT. while employing only 25% of its workforce is summarized by Sharma (2006).000 personnel+ in India. i-Flex. 2001 India is now one of the biggest IT capitals in the modern world. India holds observer __________________________________ SAGAR BUSINESS ACADEMY. are headquartered in Mumbai. The relationship between economy and technology—valued in the western world—facilitated the growth of an entrepreneurial class of immigrant Indians. as are many of the global SEI-CMM Level 5 Companies. in the last few years.EFFECTIVE RECOVERY OF LOANS Thus GOI planned to established new Institutes specially for Information Technology to enhance this field. On 25 June 2002 India and the European Union agreed to bilateral cooperation in the field of science and technology. In 1998 India got the first IT institute name Indian Institute of Information Technology at Gwalior. The success of Information Technology in India not only had economic repercussions but also had far-reaching political consequences. India's reputation both as a source and a destination for skilled workforce helped it improve its relations with a number of world economies. which further helped aid in promoting technology-driven growth. and these IT and dot com companies are ruling the roost of Mumbai's relatively high octane industry of Technology. Shine. Patni.BANGALORE 12 .

as did their successors. Calcutta was the most active trading port. foreign banks such as Credit Lyonnais started their Calcutta operations in the 1850s.BANGALORE 13 . The oldest bank in existence in India is the State Bank of India. the great Hindu Jurist who has devoted a section of his work to deposits and advances and laid down the rules relating to rates of interest. During the days of East India Company it was the turn of the agency houses to carry on the banking business. and Bank of Hindustan. __________________________________ SAGAR BUSINESS ACADEMY. The banking system of India should not only be hassle free but. They merged in 1925 to form the Imperial Bank of India. it should be able to meet new challenges posed by the technology and any other external and internal factors. This was one of the three presidency banks.EFFECTIVE RECOVERY OF LOANS status at CERN while a joint India-EU Software Education and Development Center is due at Bangalore Introduction to Banking in India: Without a sound and effective banking system in India it cannot have a healthy economy. both of which are now defunct. It is believed that the transition from money lending to banking must have occurred even before Manu. which started in 1786. the Reserve Bank was nationalized and given broader powers. A couple of decades later. Banking in India originated in the first decade of 18th century. At that point of time. After India's independence in 1947. The first banks were The General Bank of India. mainly due to the trade of the British Empire. The presidency banks were established under charters from the British East India Company. upon India's independence. which. became the State Bank of India. which originated in the "The Bank of Bengal" in Calcutta in June 1806. and due to which banking activity took roots there and prospered. the other two being the Bank of Bombay and the Bank of Madras. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. Banking in India has its origin as early as Vedic Period. For many years the Presidency banks acted as quasi-central banks.

Around five decades have elapsed since the India's First war of Independence. the Indian economy was passing through a relative period of stability.EFFECTIVE RECOVERY OF LOANS Early history in Indian Banking The first fully Indian owned bank was the Allahabad Bank. industrial and other infrastructure have developed. mostly owned by Europeans. and the social. Subsequently. established in 1865. With large exposure to speculative ventures. The presidency banks dominated banking in India. All these banks operated in different segments of the economy. banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. most of the banks opened in India during that period failed. including speculative trading in cotton. and most of them were owned and operated by particular communities. a void was created as the supply of cotton to Lancashire stopped from the Americas.BANGALORE 14 . at the end of late-18th century. The exchange banks. The depositors lost money and lost interest in keeping deposits with banks. The Bank of Bengal. __________________________________ SAGAR BUSINESS ACADEMY. Some banks were opened at that time to finance industry. which later became the State Bank of India. At that time there were very small banks operated by Indians. there were hardly any banks in India in the modern sense of the term. However. At this time. At the time of the American Civil War. There were also some exchange banks and a number of Indian joint stock banks.

Sardar Dyal Singh Majithia.both of which were founded under private ownership. Indian joint stock banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency and exchange banks. A number of banks established then have survived to the present such as Bank of India. We are like some old fashioned sailing ship. in Mumbai .BANGALORE 15 . and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbulent. in 1895 in Lahore and Bank of India. in 1906. Canara Bank and Central Bank of India. Lakhs) 35 109 5 4 25 Capital Years 1913 1914 1915 1916 1917 __________________________________ SAGAR BUSINESS ACADEMY. the market expanded with the establishment of banks such as Punjab National Bank. Bank of Baroda. divided by solid wooden bulkheads into separate and cumbersome compartments."By the 1900s. From World War I to Independence The period during the First World War (1914-1918) through the end of the Second World War (1939-1945). This segmentation let Lord Curzon to observe. "In respect of banking it seems we are behind the times. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table: Number of that failed 12 42 11 13 9 banks Authorized (Rs. The Swadeshi movement in particular inspired local businessmen and political figures to found banks of and for the Indian community.EFFECTIVE RECOVERY OF LOANS concentrated on financing foreign trade. Lakhs) 274 710 56 231 76 capital Paid-up (Rs. Indian Bank. and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. Corporation Bank. Punjab National Bank is the first Swadeshi Bank founded by the leaders like Lala Lajpat Rai.

Nationalization By the 1960s. India's central banking authority. control and regulations. This resulted into greater involvement of the state in different segments of the economy including banking and finance. the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate." The Banking Regulation Act also provided that no new bank or branch of an existing bank may be opened without a license from the RBI. and it became an institution owned by the Government of India. In 1949. was nationalized. However. banks in India except the State Bank of India. control. and no two banks could have common directors. This changed with the nationalization of major banks in India on 19th July. paralyzing banking activities for months. the Indian banking industry has become an important tool to facilitate the development of the Indian economy. The major steps to regulate banking included: • • • In 1948. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation. the Reserve Bank of India.EFFECTIVE RECOVERY OF LOANS 1918 7 209 Post-independence 1 The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal. and inspect the banks in India. it has emerged as a large employer. and a debate has ensued about the possibility to nationalize the banking __________________________________ SAGAR BUSINESS ACADEMY. and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. At the same time. continued to be owned and operated by private persons. 1969.BANGALORE 16 . despite these provisions.

the Parliament passed the Banking Companies (Acquition and Transfer of Undertaking) Bill. Jayaprakash Narayan. The stated reason for the nationalization was to give the government more control of credit delivery. It was the first and only merger of a Nationalized Bank into a Nationalized Bank. the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization. UTI Bank(now re-named as Axis Bank). described the step as a "masterstroke of political sagacity . until the 1990s. __________________________________ SAGAR BUSINESS ACADEMY. the GOI controlled around 91% of the banking business of India. in the year 1993. her move was swift and sudden. a national leader of India. resulting in the reducing the number of Nationalized Banks from 20 to 19." Within two weeks of the issue of the ordinance. and the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the midnight of July 19. namely. which included banks such as Global Trust Bank (the first of such new generation banks to be set up)which later amalgamated with Oriental Bank of Commerce. the nationalized banks grew at a pace of around 4%. Thereafter. which came to be known as New Generation tech-savvy banks. closer to the average growth rate of the Indian economy. Liberalization In the early 1990s the then Narsimha Rao government embarked on a policy of liberalization and gave licenses to a small number of private banks. New Bank of India was merged with Punjab National Bank. one of the nationalized banks.EFFECTIVE RECOVERY OF LOANS industry. Indira Gandhi. With the second dose of nationalization. 1969. 1969. and it received the presidential approval on 9th August.BANGALORE 17 .After this. A second dose of nationalization of 6 more commercial banks followed in 1980." The paper was received with positive enthusiasm. ICICI Bank and HDFC Bank. Later on.

kick started the banking sector in India. The new policy shook the Banking sector in India completely. Lend at 6%. All this led to the retail boom in India. The Indian Banking System: Scheduled Banks of India Scheduled Commercial Banks Public Sector Banks Private Sector Banks Foreig n Banks Regional Rural Bank Scheduled Urban Cooperative Banks Scheduled State Cooperative Banks Nationalize d Banks __________________________________ SAGAR BUSINESS ACADEMY. at present it has gone up to 49% with some restrictions. . People not just demanded more from their banks but also received more.BANGALORE 18 State Bank of India and associate banks. were used to the 4-6-4 method (Borrow at 4%. Bankers. along with the rapid growth in the economy of India. till this time. where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. government banks. private banks and foreign banks.EFFECTIVE RECOVERY OF LOANS This move. Go home at 4) of functioning. which has seen rapid growth with strong contribution from all the three sectors of banks. namely. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment.

They include the State Bank of India and its associate banks. Commercial Banks. the RBI undertakes certain developmental and promotional roles.BANGALORE 19 . The RBI issues guidelines on various areas including exposure standards. The aggregate loan assets of all Public Sector Banks stood at Rs. investment valuation and capital adequacy standards for commercial banks. provisioning for non-performing assets. New Private Banks. The formal banking system in India comprises the RBI. The RBI manages the country’s money supply and foreign exchange and also serves as a bank for the Government of India and for the country’s commercial banks. Regional Rural Banks and the co-operative banks.67295 crores at end Financial Year 06-07 accounting for 73.EFFECTIVE RECOVERY OF LOANS Old Private Banks. established in 1935. In addition to these traditional central banking roles. private non-banking finance companies also have been active in the financial system. income recognition. Reserve Bank of India: The RBI. and are being regulated by the RBI.39% of loan assets of all Scheduled Commercial Banks in India and their total __________________________________ SAGAR BUSINESS ACADEMY. The RBI requires these institutions to furnish information relating to their businesses to the RBI on a regular basis. In the recent past. long-term lending institutions and non-bank finance companies. is the central banking and monetary authority in India. 19 nationalized banks and 196 regional rural banks. asset classification. Public Sector Banks (PSBs): The banking sector in India has been characterized by the predominance of Public Sector Banks.

65. as part of the banking sector reform process and as a measure to induce competition in the banking sector. Co-operative Banks: Co-operative banks cater to the financing needs of agriculture.BANGALORE 20 .70% at the end of the Financial Year 07 mainly due to the increase in the loan assets of new private sector bank.1%. Some foreign banks have also set up representative offices in India. Foreign Banks: As on June 30. pending __________________________________ SAGAR BUSINESS ACADEMY.42. there are 40 foreign banks operating in India with 236 branches. The share of private sector banks in total loan assets has increased from 18.EFFECTIVE RECOVERY OF LOANS operating profits amounted to Rs. 2007. At the end of the 2006. At the end of the Financial Year 06-07.77% at the end of the Financial Year 06 to 19. the RBI undertook several interim measures. deposits of foreign banks stood at 15.8209 crores.70% of the total loan assets of all Scheduled Commercial Banks and their total operating profits amounted to Rs. the RBI permitted entry by the private sector into the banking system. the loan assets of foreign banks aggregated Rs.5. the total loan assets of private sector banks aggregated Rs. In the light of liquidity and insolvency problems experienced by some cooperative banks in fiscal 2001. The state land development banks and the primary land development banks provide long-term credit for agriculture. As on March 2007.652 crores and accounted for 6. Private Sector Banks: In July 1993. Foreign banks operate only in urban cities and metropolitan cities. 620 crores and accounted for 19. 485 crores. small industry and self-employed businessmen in urban and semi-urban areas of India.197.95% of the total assets of all Scheduled Commercial Banks and their total operating profits of the foreign banks as on March 31. 2007 amounted to Rs. The Public Sector Banks large network of branches enables them to fund themselves out of low-cost deposits.687 crores.

banking in India is generally fairly mature in terms of supply. The Reserve Bank of India is an autonomous body. Indian banks are considered to have clean. Presently the RBI is responsible for supervision and regulation of urban cooperative societies. product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services.EFFECTIVE RECOVERY OF LOANS formal legislative changes. which have not been included in the Second Schedule of the RBI Act. with minimal pressure from the government. and the National Bank for Agriculture and Rural Development for State Co-operative Banks and District Central Cooperative Banks. the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. especially retail banking. In March 2006. Non-Scheduled banks are those. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true.BANGALORE 21 . borrowings in the call market and term deposits placed with other urban co-operative banks. including measures related to lending against shares. In terms of quality of assets and capital adequacy. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. strong and transparent balance sheets relative to other banks in comparable economies in its region.] Current situation Currently (2007). 1934. One may also expect M&As. takeovers. and asset sales. __________________________________ SAGAR BUSINESS ACADEMY. mortgages and investment services are expected to be strong.

India has 88 scheduled commercial banks (SCBs) .EFFECTIVE RECOVERY OF LOANS Currently. They have a combined network of over 53. they may be publicly listed and traded on stock exchanges) and 31 foreign banks.5% respectively. with the private and foreign banks holding 18. 29 private banks (these do not have government stake. Types of Banks in India CENTRAL BANK (1): RESERVE BANK OF INDIA NATIONALIZED BANKS(19) : ALLAHABAD BANK. a rating agency. the public sector banks hold over 75 percent of total assets of the banking industry.BANGALORE 22 . According to a report by ICRA Limited. ANDHRA BANK · BANK OF BARODA · BANK OF INDIA · BANK OF MAHARASHTRA · CANARA BANK · CENTRAL BANK OF INDIA · CORPORATION BANK · DENA BANK · INDIAN BANK · INDIAN OVERSEAS BANK · ORIENTAL BANK OF COMMERCE · PUNJAB & SIND BANK · PUNJAB NATIONAL BANK · SYNDICATE BANK · UNION BANK OF INDIA · UNITED BANK OF INDIA · UCO BANK · VIJAYA BANK · IDBI BANK  STATE BANK GROUP(8): STATE BANK OF INDIA · STATE BANK OF BIKANER & JAIPUR · STATE BANK OF HYDERABAD · STATE BANK OF INDORE · STATE BANK OF MYSORE · STATE BANK OF PATIALA · STATE BANK OF SAURASHTRA · STATE BANK OF TRAVANCORE  PRIVATE BANKS(26): AXIS BANK · BANK OF RAJASTHAN · BHARAT OVERSEAS BANK · CATHOLIC SYRIAN BANK · CENTURION BANK OF PUNJAB · CITY UNION BANK · DEVELOPMENT CREDIT BANK · __________________________________ SAGAR BUSINESS ACADEMY.000 ATMs.2% and 6.27 public sector banks (that is with the Government of India holding a stake)after merger of New Bank of India in Punjab National Bank in 1993.000 branches and 17.

from the lender. each of these __________________________________ SAGAR BUSINESS ACADEMY. referred to as interest on the debt. in an annuity. Typically. called the principal. Like all debt instruments. the money is paid back in regular installments. the borrower initially receives or borrows an amount of money. and is obligated to pay back or repay an equal amount of money to the lender at a later time. each installment is the same amount. or partial repayments. The loan is generally provided at a cost. a loan entails the redistribution of financial assets over time. which provides an incentive for the lender to engage in the loan. In a legal loan. In a loan.EFFECTIVE RECOVERY OF LOANS DHANALAKSHMI BANK · FEDERAL BANK · GANESH BANK OF KURUNDWAD · HDFC BANK · ICICI BANK · INDUSIND BANK · ING VYSYA BANK · JAMMU & KASHMIR BANK · KARNATAKA BANK LIMITED · KARUR VYSYA BANK · KOTAK MAHINDRA BANK · LAKSHMI VILAS BANK · NAINITAL BANK · RATNAKAR BANK · SBI COMMERCIAL AND INTERNATIONAL BANK · SOUTH INDIAN BANK · AMAZING MERCANTILE BANK · YES BANK FOREIGN BANKS(6): ABN AMRO BANK · BARCLAYS BANK · CITIBANK · HSBC · STANDARD CHARTERED · DEUTSCHE BANK REGIONAL RURAL BANKS(4): NORTH MALABAR GRAMIN SHREYAS GRAMIN BANK FINANCIAL SERVICES(7): NATIONAL FINANCIAL ELECTRONIC MESSAGING REAL TIME GROSS SETTLEMENT(RTGS) FUND SYSTEM TRANSFER (SFMS) · (NEFT) · CASHTREE · · SOUTH MALABAR GRAMIN BANK · BANK · PRAGATHI GRAMIN BANK · STRUCTURED CASHNET · AUTOMATED TELLER MACHINE (ATM) Loan A loan is a type of debt. between the lender and the borrower.BANGALORE 23 .

a car or property) as collateral (i.EFFECTIVE RECOVERY OF LOANS obligations and restrictions is enforced by contract..g. no collateral is involved)..e..BANGALORE 24 . Types of Loans offered by the Banks: Secured loan A secured loan is a loan in which the borrower pledges some asset (e. These may be available from financial institutions under many different guises or marketing packages:      Bank overdrafts Corporate bonds Credit card debt Credit facilities or lines of credit Personal loans THE KARNATAKA BANK Ltd __________________________________ SAGAR BUSINESS ACADEMY.e. Commonly Mortgage loan is provided by the banks. which can also place the borrower under additional restrictions known as loan covenants. Unsecured Loans Unsecured loans are monetary loans that are not secured against the borrowers assets (i. security) for the loan.

Among other Banks. we have over 5. 1924 at Mangalore.844 employees. Over the years the Bank grew with the merger of Sringeri Sharada Bank Ltd. a coastal town of Dakshina Kannada district in Karnataka State. we now have a national presence with a network of 479 branches spread across 20 states and 2 Union Territories. Managed by a dedicated & professional management team. one mission . Today.868 shareholders and over 4. With over 87 years experience at the forefront of providing professional banking services and quality customer service. we have emerged as a leading financial service institution in India. we have focused on one task.BANGALORE 25 .To Give You The Best in Services and In Products. Chitradurga Bank Ltd.EFFECTIVE RECOVERY OF LOANS KARNATAKA BANK LIMITED: REGD & HEAD OFFICE : MANGALORE575002 History Karnataka Bank Limited. Technology Throughout the years. and Bank of Karnataka.84 million customers. 86. was incorporated on February 18th. it was Karnataka Bank who first realized the importance of having a Centralized Banking system and was among the first __________________________________ SAGAR BUSINESS ACADEMY. The bank took shape in the aftermath of patriotic zeal that engulfed the nation during the freedom movement of 20th Century India.. a leading 'A' Class Scheduled Commercial Bank in India.

This centre will also be the backup for the ATM operations. We have taken a lead and implemented a Disaster Recovery Centre. We understand the changes in your lifestyle recognize these changes and support you with a high standard of professionalism and service.EFFECTIVE RECOVERY OF LOANS to deploy the Core Banking System in the year 2000. which is why. The mission Our mission is to be a technology savvy. To ensure that you have the Best. providing optimum returns on surplus funds or helping with overseas transactions. we understand that all customers are different in unique ways. These systems provide the highest reliability thus enabling us to offer to you Non-Stop services of the highest order.BANGALORE 26 . At Karnataka Bank. driven by the highest standards of corporate governance and guided by sound ethical values. this centre will immediately come into force and provide full continuous service. customer centric progressive bank with a national presence. __________________________________ SAGAR BUSINESS ACADEMY. As a premier bank. This means offering you choices. not only in relation to our products and services but also in the way you interact with us. They include.Business or Personal. Business never stops. trade or perceived need . regardless of the size of your business or your aspirations. we have developed comprehensive range of customized products & services suitable for every kind of market." At Karnataka Bank. This centre will replicate the Banks Centralized Banking system and all its data. We have ensured your business is protected by Non-Stop Banking. borrowing facilities. Leaving nothing to chance. Sun and Wipro. we have deployed the State-Of-Art technology from the best players in the Industry like Infosys. In the event of a natural disaster at Bangalore.the Data Centre at Bangalore. we treat everyone as individual and special. deposits. This system enabled us to store and process all the customers' accounts from one single place .

Today. 89407 share holders and 2... which is the capital and also the trading and commercial activities of the district. a few prominent and enterprising citizens of the district. 9 of which were from Mangalore. merchants. on December 30th 1964. No 716. doctors. i. The bank has shifted its Registered and Head office from P. Kodialbail.B.BANGALORE 27 ..e. The certificate to commence business was obtained on May 23. Chitradurga Bank Ltd. 1924. from 1906 to 1945. The bank made rapid strides under the dynamic leadership of exemplary vision.B. (5 leading banks including Karnataka Bank Ltd). Sri Sharada Bank Ltd. Inspired by the Swadeshi movement.R. No 599. on April 1st 1960. Karnataka bank has national presence with a network in excess of 433 branches. The bank has over 4677 employees. who guided the banks fortunes for over 30 years. One such pioneer was Sri. spread across 19 states and 2 Union Territories. Mangalore 575002 in September 2003. the bank has taken up corporate agency for marketing the various life policies of Met Life India Insurance Co Ltd. Mahaveera Circle. Mangalore 575003 to P. In the stride towards progress and expansion. __________________________________ SAGAR BUSINESS ACADEMY. mostly hailing from the communities of farmers. since as many as 22 banks of different sizes had their origin in the district. and The Bank of Karnataka on December 29th 1966. viz. advocates incorporated the banking institution in the district.EFFECTIVE RECOVERY OF LOANS COMPANY PROFILE Back ground and management of the Karnataka Bank The bank was incorporated on Feb 18. And during the year 2003. 1924 as the Karnataka Bank Ltd at Mangalore. in Karnataka state to cater to the banking needs of the south Karnataka region. in 1924 under his chairmanship. During the period of four decades. the bank got reinforced by the takeover of 3 banks. Kankanady.6 million customers. B. the district attained renown as the cradle of a banking revolution in the country. Vyasaraya Achar. who along with his contemporaries promoted the Karnataka bank ltd.

As on March 31st 2008. its total business exceeds Rs 28000 crores. Every organization must have its own mission. cheerfulness and forward looking nature.74 crores. At Karnataka bank they understand that customer are different in unique ways. which is why regardless of the size of your business or your aspiration. security and enduring success for all the beings. simple line came from Dr Karanth’s pen became the logo of Karnataka Bank. Logo also represents growth with safety. Sri Adiga with all his dream met Dr Shivaram Karanth. a one stop shop for all you’re banking need and create the right solution with speed and efficiency. advances were Rs 10841. mother and their progeny. deposits were Rs 17016. “your family bank across India”. which has the external existence with infinitive. symbolizing their security which is reflected in the bank motto. not only in relation to our products and services but also in the way you interact with us. this means offering you choice. which signifies brightness. for your maximum benefit Mission Statement: The mission statement of any organization generally represents its long term goals and strategies.19 crores. The sign also signifies with family concept of father.BANGALORE 28 . we treat everyone as individual and special among other things. Bank logo is indicative of creation and potency. Values: We at Karnataka bank offer a total value package. We understand the changes in your lifestyle recognize these changes and support you with a high standard of professionalism and services. Background of the Logo: The person who had such a dream.EFFECTIVE RECOVERY OF LOANS It is one of the leading private sector banks in the country known for its steady and disciplined growth and cordial borrower service. which is also a manifestation of human soul. which describes __________________________________ SAGAR BUSINESS ACADEMY. The Bank has adopted a new brand color.97 crores and net profit for the year ended 31st March 2008 was Rs 241.

across India”. Vigilance Department 10. this is your bank.BANGALORE 29 . Credit Department 2. Information system Department 11. Investment department 8. Planning and Development Department 9. Secretarial section Infrastructural Facility: As regards to the infrastructural facilities provided in Karnataka Bank: __________________________________ SAGAR BUSINESS ACADEMY. a one stop shop for all your banking needs. customer centric progressive bank with the presence. Our motto is to serve you with high standard of professionalism with the personal touch built on trust. IT Department 13. After all. Inspection and audit Department 5. Human resources and Industrial relations department 6. Legal department 12.EFFECTIVE RECOVERY OF LOANS present business scope of the organization. Risk Management department 4. Vision Statement: “We believe in a total quality at a total value package. Recovery Department 7. There are various departments in the bank head office to assist in the smooth functioning of the banking activities namely: 1. Treasury and Accounts department 3. driven by the highest standards of corporate governance and guided by sound ethical values”. The mission of Karnataka Bank Ltd is as follows: “Our mission is to be a technology savvy.your family bank.

utility bill payment is enabling to keep track of finances thereby saving time. And also provide good environment to do work to employees. Allowances: The bank provides basically petrol. Services: Karnataka Bank offers total value packing. life insurance. whether it high caring deposits. 100% medical allowance and promotion and wage revenue plan. Facilities: The Bank provides canteen facility to all its employees and bank also provides internet facility its employees.EFFECTIVE RECOVERY OF LOANS Offices: The Head office of Karnataka Bank Ltd and other 70% branches has a central air condition system with well furnished branches which the employees to escape from the heat of Mangalore City and other heat areas. The bank is committed to provide with customized services designed to suit individual requirements. Work flow model of the Bank: Mobilization of funds Lending Recovery Mobilization of fund: __________________________________ SAGAR BUSINESS ACADEMY. nonstop shop for all banking needs. And also give accommodation facilities to employees.BANGALORE 30 . easy and convenient loans.

Memorable Milestone: In 1984 the bank celebrated its Diamond Jubilee year.EFFECTIVE RECOVERY OF LOANS This is the first process in the bank. Suvarna Nidhi and Ready Money Krishi Card an easy and quick substitute for Crop loan was introduced. Stock – invest scheme was introduced. In 1998-99.. again recovered amount will be invested. Diamond Jubilee Cash Certificate. it will mobilize the funds from various sources like individual savers corporate. Recovery: After the maturity of loan period. Lending: After mobilization the necessary funds.BANGALORE 31 . individuals.e. After fulfilling the necessary requirement of the RBI. the bank introduced two new deposit schemes i. and other financial institution and RBI also supply the necessary funds. Abhyudaya magazine was introduced. The 18th February 1998 was witnessed the bank’s advent into its Platinum Jubilee year. This process is continuous in the bank. It has to maintain reserves like CRR.e. In 1992-93 the first currency chest. it has to maintain necessary funds as reserves. the bank will recover the loans. SLR and so on. to make this occasion memorable it introduced a new scheme i. For this purpose the bank has a separate recovery department. To make the occasion memorable the bank has chalked out an extensive and phased __________________________________ SAGAR BUSINESS ACADEMY. In this year Merchant Banking division was started. the bank will lend to various corporate..the first in Karnataka by any private sector bank was opened on May 17th in Bangalore.

It accepts deposits from the customers.EFFECTIVE RECOVERY OF LOANS programmed encompassing publicity.BANGALORE 32 .1 private sector banks in India which is providing all the services of a modern bank to its customer. We are aiming at a total value package. Two new deposit schemes – Platinum Lakpathi and Platinum Double and Vidyanidhi Education loan schemes have been introduced. It also provides for the remittance of funds and some other facilities. Our motto is to serve you with high standard of __________________________________ SAGAR BUSINESS ACADEMY. The rating symbol “A1+” indicates highest degree of safety for timely payment of principal and interest. 150 crores raised by the bank during the year under report by way of unsecured redeemable nonconvertible subordinated bonds. Achievements/ Awards: The credit rating agency ‘ICRA Limited’ one of the leading rating agencies of the country has recorded “A1+” rating to the bank’s certificate of deposit programme. recognizing organizations which have pledged their positive commitment to the planet and engaged eco-efficient green technologies to run their business. Nature of business carried out: Karnataka bank is the No. securitization etc. provides loans and advances to the needy people. even marketing social welfare schemes and corporate identity symbols. The bank has won the prestigious SUN and NDTV green IT award instituted SUN Microsystems and NDTV. a onestop shop for all your banking needs. Quality policy: The quality policy of the Karnataka Bank is as follows “We believe in total quality at all levels. It will also carry various activities like D-mat. Further ICRA and ‘credit analysis and research ltd (ICRA)’ have assigned “LA+” and “CARE A+” ratings respectively indicating adequate credit quality to Rs.

has accorded ‘A1+ rating’ to the bank’s Certificate of Deposit programme. mutual fund products of other companies and they help in the payment of electric and telephone bills. After all this is your Bank. by increasing the total no.7 extension counters.EFFECTIVE RECOVERY OF LOANS professionalism with a personal touch built on trust. of branches to 460 and own ATM network to 180 by March 2009. __________________________________ SAGAR BUSINESS ACADEMY. 4 service branches. It has more than 150 ATM outlets. the bank ha plans to increase its total no. It has its branches in 19states and 2 union territories. comprising of a deposit target of Rs 21000 crore and advance target of Rs. Besides banking operation involve into variety of services selling insurance. of business units to 640. as they already have a large customer base for which they give similar or related service under a single umbrella. All the branches are computerized branches. Your Family Bank Across India”. 2 currency chests. 1 international division. Besides. The rating symbol A1+ indicates highest degree of safety for timely payment of principal and interest. it has 433 branches. Corporate Goals: The bank has envisaged achieving a total business turnover of Rs 35000 crore. As on 31-03-2008.14000 crore for the year ending 31st March 2009. 8 regional offices. Area of operation: The area of operation is spread all over India. 1 Data center. one of the leading credit rating agency of the country.BANGALORE 33 . ICRA Ltd. The bank is confident of achieving the same through customer services and operational efficiency. External Certificate and Recognition: The credit rating agency.

Mumbai. Bangalore. Hubli. Chennai. Purchase of goods etc. The bank is planning to enable ‘Money Click’ as a payment gateway for the shopping that covers as the areas of business like Hotel Booking. Mysore and Delhi. Bank’s tie up with ‘M/S __________________________________ SAGAR BUSINESS ACADEMY.EFFECTIVE RECOVERY OF LOANS Karnataka bank is already dealing with MetLife and Franklin Templeton investments. Karnataka bank has taken significant strides on the technology front. The regional offices are situated at Mangalore. Further bank is also planning to tie up for online trading in shares. India. Future growth and prospectus: With an economy of the country growing at nearly 8% there is high growth potential for the bank. All the branches and offices are connected to ‘core banking solution’. Branch Network: The bank has a national presence through a widespread network of 433 branches. Karnataka bank has signed a MOU with ICICI and Bajaj Allianz. Shimoga. Ticket Booking. The branch network is administered by 8 regional offices and an international division. The bank is also planning to introduce mobile Top-up through ATM’s and internet banking. The bank has also diversified into new avenue of business such as Merchant Banking and Leasing. With overall supervision and control by the head office personalized borrower service is its key success factor. industrial finance and foreign exchange. During the year 2006-07. the bank shifted its 22 branches and Mumbai-Regional office to new spacious premises. Specialized branches have been established to cater to the needs of key borrower segments in the core area of agriculture.BANGALORE 34 .

The bank has plans to launch students’ prepaid card and online trading facility for capital market products.BANGALORE 35 . In the area of farm credit. for financing purchase of tractors/ power tillers/ vehicles and form equipments. provide risk management services. The bank has also entered into a pact with ‘M/S Motors Limited’. The bank ties up with ‘Tata Mutual Fund’ for distribution of their mutual fund products. The bank has on its agenda opening of a few more branches to take the tally of branches to 500 besides adding more ATM’s to 250 by end 2012.EFFECTIVE RECOVERY OF LOANS Tech Process Solutions Limited’. The bank intends to participate in initiatives of RBI like NFC’s and expand centralized loan account opening at ‘Central Processing Centre’ (CPC) for all branches. the bank has signed a Memorandum of Understanding with ‘M/S Mahindra and Mahindra Limited’. E-hundi facility has been made available to a few reputed temples. facilitates online payment in merchant establishments. for financing purchase of tractors/ power tillers and farm equipment. ‘White label agreement’ has been made with ‘Calyon Bank Limited’ France. CATEGORY METRO URBAN SEMI-URBAN RURAL TOTAL NO OF BRANCHES 120 134 89 88 433 __________________________________ SAGAR BUSINESS ACADEMY.

For repairs/renovation/remodeling maximum period of loan is fixed at 7 years. 1. rate of interest up to 5 years 8.a is charged. In the case of renovation/remodeling/repairs of existing house/flat maximum of Rs.75% p. Apart from this. above 10 years up to 15 years .50 lakh is given for the construction of house/purchase of flat/ site/ and construction of house there on. above 5 years and up to 10 years 8. 15. KBL Apna Ghara) Housing Loan Scheme for resident individuals: Under this scheme maximum quantum of Rs. loan is also given to an extent of maximum Rs. The loan is granted for a period for 15 years.a is charged.00 lakh 9% p. Nonresident Indian holding Indian passport and having permanent job or self employed with a minimum monthly income of Rs. b) Housing loan scheme for NRI’s: Under this scheme a loan is given to a non resident of India (NRI).EFFECTIVE RECOVERY OF LOANS Loan Scheme of the Karnataka Bank: The Karnataka Bank has following wide ranges of loan schemes.a and above Rs. The security for loan is mortgage of property.a.15.50 lakh may be given as loan for fulfilling once dream of buying or constructing his own house or flat.10000 is eligible.a is charged.50% p.50% p.00 lakh 10% p. is charged.BANGALORE 36 . above 5 years and up to 10 years 8.10 lakh for repair. Under this scheme maximum of Rs. They should also have an operative account with bank the bank with regular operations for @least 1 year.10 lakh is given. were the loan is given up to the period of 15 years. above 10 years up __________________________________ SAGAR BUSINESS ACADEMY.a is charged. renovation of existing house or flats for a period of 7 years. The period of this housing Loan is for 15 years.75% p. Rate of interest up to 5 years 8.up to and inclusive of Rs.

100000/-borrower is given.00 lakh 9% p. 3 lakh-12% p. KBL Car Finance Scheme: An individual purchase of a motor vehicle who is an income tax assesses with sufficient repayment capacity is eligible for this scheme.a. For second hand vehicles up to Rs. Rate of interest is charged up to and inclusive of Rs. The unique advantage of this scheme is that it enables credit while keeping the borrowers investment intact.. 15.a.a.10 lakh-11% p. Up to 3 years interest will be charged 10. whereas a maximum of Rs. companies etc.10 lakh-10% p. In case of new cars finance to an extent of 85% of invoice value of the car excluding vehicle tax and insurance.EFFECTIVE RECOVERY OF LOANS to 15 years . Under this scheme finance will be given for the purchase of new as well as second hand cars by the Bank. 3. professionals and companies are eligible for finance under this scheme. to an extent of 100% of invoice value of the vehicle by the Bank for a period of 5 years.15. 2.00 lakh 10% p. KBL Insta Cash: In this scheme loan will be given to the persons aged above 18 years for consumption purpose. Maximum amount of Rs. 4.a and above Rs.a.5 lakh will be given for purchasing second hand cars not older than 3 years from the date of registration of the vehicle.50%. Maximum period of loan for new vehicle is 60 months and 34 months in the case of second hand vehicle. In this scheme finance will be given for the purchase of two wheelers to any individuals.BANGALORE 37 . more than 3 years 11%. above Rs.up to and inclusive of Rs. KBL Easy Ride-(Two Wheeler Loan): Individuals. The quantum of loan ranges from Minimum of __________________________________ SAGAR BUSINESS ACADEMY.

00 is given.. The main purpose is for the purpose of purchase of medical equipments/machineries/computers. for meeting medical expenses.5 lakh.in the case of rural branches.a. The minimum advance given is 10000 Rs and maximum advance is of Rs. KBL Udyog Mithra: Under this scheme loan will be given to any individuals practicing as lawyers. Rs. The loan is granted up to Rs. 6. books and for the payment of advance rent for setting up of an office. The rate of interest charged is 11% p. charted accountants. 5. purchase of furniture. self employed or professional.in the case of Metropolitan branches __________________________________ SAGAR BUSINESS ACADEMY. All resident Indian Women within the age group of 18 to 60 years in case of self employed/professionals. 150000/. children’s education etc.50000 and the maximum period of this loan is for 5 years. 7.in the case of urban branches and RS 200000/. Salaried Persons (Scheme Loans): This scheme is meant for permanent employees of any reputed institutions or co’s for purchasing household articles. doctors and engineering consultants and loan is given only if they are having satisfactory dealings with the Bank for more than 6 months. Rate of interest charged is 12% p. Maximum advance of Rs. gold bars and coins from reputed jewelers will be given exclusively to resident Indian woman whether working or not working.300000.EFFECTIVE RECOVERY OF LOANS Rs. furnishing the office.BANGALORE 38 .a and the maximum period is for 5 years.5000 to of Maximum Rs. KBL Swarna Nidhi: Under this scheme loan for purchasing gold ornaments. Rs. provided they are not aged more than 55 years and are having maximum 3 years of remaining service. 100000/in the case if Semi-urban branches. Maximum period is for 60 months and for OD 24 months.75000/.

Crane etc. permit etc. bus. 2 lakh up to Rs. KBL Vahana Mithra: In this scheme finance to individuals. old (up to 5 years) auto rickshaw.. The rate of interest to be charged up to and inclusive of Rs. maxi cabs. HUF.BANGALORE 39 . The finance is provided in the form of short term/term loan subject to repaying capacity of the parents/students and the following ceilings: Studies in India -Maximum Rs. 25 lakh –12% p.10 lakhs.25 lakh for a period of 34 months for OPN. commission agents. stockiest etc.2. KBL Varthak-Loan: Under this scheme finance for meeting the working capital needs of traders. JCB. partnership firms or a company will be given for purchasing new cars. and also for purchase of new Tractor. jeep etc. The period of this loan is Maximum up to 84 months for Bus and Trucks. The main eligibility for the student is any major student representing himself or a minor student represented by parent or guardian. of Indian nationality.10 lakhs and 12% p.. Vidyanidhi-Education Loan Scheme: In this scheme financial assistance in the form of loan will be given to both minor and major students of Indian nationality for pursuing their education in various disciplines specified by the Bank in India as well as for abroad.15 lakh The loan to be repaid in 5 to 7 years after commencement of repayment 9.7. which are to be registered as public transport vehicles to an extent of 85% of the invoice value the vehicle excluding vehicle tax and insurance. The rate of interest charged under this scheme is @10% p.EFFECTIVE RECOVERY OF LOANS 8. lorry.a for loan limit up to Rs. 10.a or limits above Rs.00 lakh—11% p. Mainly the scheme was designed to provide financial support to the deserving and meritorious students for continuing their studies in India and abroad. 12 months for OD will be provided by the Bank. will be given subject to a maximum extent of Rs.Maximum of Rs. __________________________________ SAGAR BUSINESS ACADEMY.5 lakh Studies abroad. and body building charges up to 75% of the quantum finished by vehicle body builders.a. distributers. and a maximum of 60 months for all other vehicles. TATA sumo.a and above Rs. is charged.

industrial credit and investment corporation of India limited.BANGALORE 40 .EFFECTIVE RECOVERY OF LOANS TERM LOAN APPRAISAL: Term loans are generally granted for acquisition of assets. Short term credit facilities are granted to meet working capital needs by of cash and discounting of bills. particularly from industrial development bank of india through its refining scheme. export import bank of India. Features of term loan Maturity: The maturity period of term loan is typically longer in case of sanctions by financial institutions in the range of 6 -10 years in comparison to 3-5 years of bank advance. state finance corporations. Term lending institutions like industrial finance corporation of India. With the growth of industrialization. infrastructure development finance corporation. etc. industrial development bank of India. Negotiated: The term loans are negotiated loans between borrowers and the lenders. Term (long term) loan is a loan made by the bank / financial institutions to a business having an initial maturity of more than 1 year. national small industries corporation limited. Besides. In addition to the indirect long term finance provided by the private bank Above. assist industrial in raising long term funds by granting term loans. guaranteeing deferred payments. they assist industries in raising long term funds. a number of specialized credit institutions have been set up to assist the industries in raising long term fund. etc. Financial institutions referred to above mainly provide medium and long term finance to industries and the commercial bank normally finance short term requirements. subscribing to and underwriting public issues of shares and debentures.. they also grant direct loans to industries. __________________________________ SAGAR BUSINESS ACADEMY. etc.

are to be examined. In case of working capital appraisal for a running unit it should be ensured that the technical. all the other present and future assets of the company provide collateral / secondary security for the term loan.EFFECTIVE RECOVERY OF LOANS Security: All term loans are secured. A detailed survey by technical experts in the relative industry may be necessary at times. Any proposal should be vetted on the following four parameters.BANGALORE 41 . While the assets financed by term loans serve as primary security. • • • • Technical appraisal Managerial appraisal Marketing appraisal Financial appraisal For term loan appraisal the above should be thoroughly scrutinized and adhered to. __________________________________ SAGAR BUSINESS ACADEMY. managerial and marketing viability had already been established. the following broad aspects relating to the project. While evaluating proposals for term loans or deferred payment guarantees. The term loan appraisal is normally carried out by studying the following: Technical appraisal: Technical feasibility will depend upon the following:Choice of technology and process know-how: The technology and the process to be adopted should neither be experiment nor obsolete. if any financial analysis should be thoroughly carried out). Any loose ends should be brought in the process note as risk factor (along with mitigating factors. besides undertaking a detailed study of applications.

Location and site Building Plant and machinery Manpower requirements Breakeven point 1.EFFECTIVE RECOVERY OF LOANS The review done by the financial institution focuses mainly on the following aspects: • • • • • • • • • • Product mix Capacity Process of manufacture Engineering know-how and technical collaboration Raw materials and consumables. Similarly consumable and spare requirements to be examined 4. PowerAvailability of adequate power through electricity board captive power plants to be ensured. landed cost to be examined in detail. 2.BANGALORE 42 . any adverse factors (i.e. terrorism. __________________________________ SAGAR BUSINESS ACADEMY.) to use the same for industrial / envisaged proposal is available. corporation etc. LocationProximity to raw material source/market to be examined. 3. Availability of raw materialIts sources. frequency of natural calamities) to be examined. Land detailsWhether adequate land is available and whether permission from competent authorities (municipality. the peak load and connected load requirement to be ascertained and verified (preferably through an electric engineer).

BuildingType of construction. The name of user of machinery should be ascertained and performance to be cross checked.EFFECTIVE RECOVERY OF LOANS 5. The necessary and reasonableness of cost to be ensured 9. 8. the capacity of the company / architect/ contractors to construct / execute the same to be analyzed 7. age of machinery. resale value restrictions on import on financing machinery (more than 5 year old) are to be examined in detail. the reputation and capacity of the supplier. whether the building will be constructed on their own or through architect / contractors. Preliminary and pre-operative expenses- __________________________________ SAGAR BUSINESS ACADEMY. 6. In. PollutionNOC from pollution control board (Air and water) should have been obtained. The landed cost of the machinery (from the quotations) to be arrived at. which are incidental to production. Miscellaneous fixed assetsThe miscellaneous fixed assets normally consist of assets like furniture+ fixture etc.BANGALORE 43 . Plant and machineryThe source of plant and machinery (imported or indigenous). If so. The reasonableness of cost to be ensured. guarantee and warranty clause to be examined. whether it will be ideal for the proposed manufacturing activity to be studied. if second hand machinery. It should be ensured that pollution control equipments and utility equipment (boiler act) are included in the list of plant and machinery whether it is applicable.

EFFECTIVE RECOVERY OF LOANS This consists of expenses like share issue expenses. miscellaneous fixed assets to take care of unforeseen price variation. plant and machinery. Payback period It represents the length of time required to recover the initial cash outlay on the project – a project with shorter payback period is desirable. A part from traditional ratios for term loan appraisal the following are looked in to. Margin on working capital requirementsThe basis for ascertaining the working capital requirements of a company is ascertained in later para. interest during construction period etc. The financing of the cost of project may be through various sources. Based on above the total cost of the project is arrived at. the reasonableness of the same to be ensured. 11. 12. When internal accruals are taken as a source it should be ensured that the borrower has adequate capability to bring the same from his source in case the same is not materializing.BANGALORE 44 . 13. ContingenciesThe provision for contingencies (a reasonable %) is normally loaded on cost of building. Normally they are written off over a period of 10 years (maximum). normally 20% to 25% (maximum) margin from promoter is insisted. The common sources are:Promoters contribution (either in the form of capital or unsecured loan) Internal accruals Term loan from bank / financial institutions. 10. Average rate of return __________________________________ SAGAR BUSINESS ACADEMY.

their qualification and experience and how for it is relevant to the proposed activity. The performance of group / associates and the conduct of the account with their bankers should also be examined. If the rate of interest paid on borrowed for the project is higher than the project is not available. Managerial Appraisal The managerial appraisal consists of appraisal of the background of the promoters.25) and average debt service coverage ratio is at least 1. The discount rate employed for evaluating the present value of the expected future cash flows. Debt service coverage ratio The numerator of this ratio is profit after tax plus non cash expenses (depreciation etc) plus interest on term loan payable during the year. The higher the average rate of return the better is the project.EFFECTIVE RECOVERY OF LOANS The numerator of ratio is the average annual post tax profit over the life of investment and the denominator is average book value of fixed assets committed to the project. A higher debt service coverage ratio call for shorter repayment period. The scope also included as to whether the name of promoters / group/ associate are in the defaulter list of RBI / caution list of ECGE etc. It should be ensure projected repayment period (minimum of 1. Net present value The net present value of the project is equal to the sum of present value of all the cash flows associated with the project. Internal rate of return The IRR of a project is the discount rate which makes its net present value equal to zero.BANGALORE 45 .50:1. Appraisal __________________________________ SAGAR BUSINESS ACADEMY.

MOBILE BANKING With Karnataka Bank. extent of competition. demand supply gap (existing as well as project). government policy seasonal characteristics. The extent of expenses to be incurred on selling and distribution also to be examined The cost of project and means of finance has to be arrived at. It should be ensured that cost is reasonable (by expert opinion. and performance of other player in the field. cost of similar project if implemented recently). The promoters’ margin as stipulated should be brought in and proof should be held on record. and likely entrants in the field. Banking is no longer what it used to be. M-Commerce: __________________________________ SAGAR BUSINESS ACADEMY.BANGALORE 46 . Karnataka Bank Mobile Banking enables you to bank while being on the move. Karnataka Bank offers Mobile Banking facility to all its Bank customers.EFFECTIVE RECOVERY OF LOANS The marketing appraisal consists of industry scenario.

we have developed products that cater to your every step in life. wherever you are. Udyog mithra. It offers you the individuality with respect to your needs and to your earnings. LOANS A family man has different financial needs at different stages in his life. Scheme for salaried persons. be it luxury or providing quality standard of life to your family. online purchases. This card gives you the freedom of making the purchases __________________________________ SAGAR BUSINESS ACADEMY. retail shopping and much more at over 15. Movie Any Tickets. The products we offer to you are honest in intent and quality in content. Car finance scheme. it comes with understanding you and your special individual needs. K-Power..BANGALORE 47 . Start Paying with your Mobile. Any Where Karnataka Bank Mobile Banking SMS Alerts keeps you informed about the significant transactions in your Accounts. Easy ride. Our product suite include Vidyanidhi Education loan scheme. Shopping. By understanding your changing financial needs. Varthak loans.EFFECTIVE RECOVERY OF LOANS Karnataka Bank offers you the convenience of paying for utility bills. Mobile Recharge. These cards gives you access to your account whenever you want. It keeps you updated wherever you go. And most of all. movie tickets.. Niveshan loans. Apna Ghar home loans..000merchants directly from your mobile. MoneyPlantTMDebit Cards: MoneyPlantTM International Debit Card allows you to purchase goods at Merchant Establishment and also gives freedom to withdraw cash from ATMs in India and abroad.Time. Cards Karnataka Bank introduces a range of cards depending upon your requirement. Krishi card. mobile recharge. So.

for 45 days under K Power Scheme. your purchase will be debited to your account instantly. You can use your Debit card as a credit card with credit facility of maximum limit of Rs. No need to carry the cash or no need to pay the bill at the end of the month.BANGALORE 48 . Visa Gold Debit Card Visa Classic Debit Card PRODUCTS FROM KARNATAKA BANK Spectrum of Term Deposit KBL Bouquet of Savings KBL Kishore & Tarun KBL Current Account KBL RFC (Resident Foreign Currency Account) KBL KYC Policy KBL Mobile Banking KBL Gold Card KBL Vanitha KBL Krishik Bhandar KBL Krishik Sarathi KBL Apna Ghar KBL Contractor KBL Ghar Niveshan KBL Lease N Cash KBL Mortgage KBL Ravi Kiran MULTI BRANCH BANKING  Spectrum of Advances KBL & Western Union Money Transfer KBL Salary Privilege KBL NRI Services KBL MoneyAlert KBL QuickRemit KBL eCommerce KBL Student Prepaid Card KBL Agri Gold KBL Krishik Pushpankar KBL Krishik Sinchana KBL Car Finance KBL Easy Ride KBL Insta Cash KBL Mahila Udyog KBL MSE KBL Salaried Persons __________________________________ SAGAR BUSINESS ACADEMY.EFFECTIVE RECOVERY OF LOANS without the hassle of paying in cash. 25000/.

SB-General (SBGEN).EFFECTIVE RECOVERY OF LOANS Multi Branch Banking facility is a value added service to our customers taking advantage of "Core Banking Solution". The concept of 'anywhere' banking is extended to all domestic SB and Current Accounts except NO Frills Accounts. are MBB accounts with structured free services and Multicity Cheque facility with cheques payable at par at all Branches.BANGALORE 49 .SB-Money Platinum. Facilities available under MBB: Payment Services: # # # # Any where Cash withdrawal for self cheques only Multicity Cheques Funds Transfer Funds Transfer through RTGS/NEFT Collection Services: # # # Any where Cash Deposit. The salient features of the scheme are as under: 1.CA Money Ruby. Even SB-General and Current-General accounts are eligible for MBB facility with Multicity Cheques. It is a 'technology driven-anywhere banking' facility and 'at par' facilities for Savings Bank and Current account with structured schedule of services and charges.CAMoney Pearl.CA-Money Platinum. 2.By self only Collection of out station cheques Any where Deposit of cheques for collection Other Facilities: __________________________________ SAGAR BUSINESS ACADEMY.SB-Money Sapphire. Now the customer can access his account at all branches of the Bank.Current A/c General (CAGEN).CAMoney Diamond.

YOU. we have diversified into the marketing of life insurance products of MetLife India Insurance Co. utility bill payments or enabling you to keep track of your finances. We have worked with one focus . But most of all. For further details. the 140 year old. protection of your housing loan repayments. for your maximum benefit. Ltd. We are relentless in finding ways to make your hard earned money work harder. We offer a wide range of solutions to help you plan for your various financial needs like your children's education & wedding. Technology is matched to your expectations of service. an affiliate of MetLife. Personal Banking We at Karnataka Bank offer a total value package. your retirement. protection for your family etc.. Ltd. with speed and efficiency.BANGALORE 50 . for today & for the future. largest life insurance company in the USA. And entered into a Corporate Agency arrangement for distribution of their General __________________________________ SAGAR BUSINESS ACADEMY. We are committed to providing you with customized services designed to suit your individual requirements whether it be high earning deposits. Insurance Services In conformity with our endeavor to become a financial supermarket and to provide total financial solutions to our customers. life insurance. You can find one product that is just right for you and your Family. We have deployed the most modern information technology to deliver products & services for your benefit with an aim to develop an effective long-term relationship. a one-stop shop for all your banking needs. We thoroughly research these needs and create the right solution at the right time.EFFECTIVE RECOVERY OF LOANS # Internet Banking # # # Mobile Banking (SMS alerts) Demat Account 'MoneyPlant' Visa International Debit Card We believe in total quality at all levels. thereby saving your time. easy & convenient loans. Karanataka Bank forayed into General Insurance business by promoting a Joint Venture company called Universal Sompo General Insurance Co.

EFFECTIVE RECOVERY OF LOANS Insurance products through our branches. You can now get your assets insured against fire, burglary and a host of other eventualities. You can also cover yourself as well as your near and dear ones against the contingencies of accidental death, hospitalization etc. For further details, please click the link: s a means to the total protection of your family and your assets. Real Time Gross Settlement (RTGS) RTGS is a payment system in which both processing and final settlement of fund transfer instructions take place on real time basis. It is a gross settlement system where fundtransfers are settled individually, i.e. without netting debits against credits. RTGS effects final settlement continuously and the settlements are immediate, final and irrevocable. Each Bank branch participating in the RTGS is identified by a unique Indian Financial system code. With the advancement of the Technological changes in the Banking industry the RTGS introduction has become a boom in settling the Interbank funds instantaneously. The Customer can avail this facility and make instantaneous transfer of funds to beneficiary`s account Karnataka Bank became a member of Real Time Gross Settlement (RTGS) System from 16th July 2004 and has been settling Inter-Bank transactions in Mumbai since then. MoneyQuick services can be accessed by customers which uses RTGS service. This MoneyQuick facility provides INTERBANK funds transfer. Western Union Money Transfer Western Union Financial Services International has a legacy of public trust built through more than 150 years of extra ordinary continuous service. This international money transfer system facilitates quick, secure, reliable and convenient transfer of funds all over the world. Neither the sender nor the receiver has to have a Bank account with us and the receiver pays no fee. The person who remits you the money will fill in a prescribed form giving details of beneficiary and deposit the money along with the requisite service charges (fee) at its agent abroad. The remitter will give one Test Question and its answer for identification of beneficiary.


EFFECTIVE RECOVERY OF LOANS The remitter then gets a receipt with Money Transfer Control Number (MTCN) which he will inform to you as the beneficiary of the transfer. The amount so deposited will be available to you within 10 seconds. Customers walk into any of the branches of our Bank offering this facility in India, fill in the form giving information available with you including MTCN, test question etc., along with proof of identification like ration card / driving license / voter identity card / credit card etc. The paying branch will access the Western Union System for authorization and make payment. Business Banking Continuous improvement is the only business strategy that can provide you with a clear competitive edge and keep you ahead of the fierce competition. We understand the dynamics of competition in today's fast changing world. We understand the growth need of every business irrespective of the size. We offer a variety of carefully drafted tailor made Banking products to help your business get that edge in this competitive environment. Working Capital Finance , Term Loans and Infrastructure Finance to helps Business grow. With providing these type of finances to start an industry, to financing working capital, we have Business Finance Products both fund based and non-fund based suited to all sectors of Industry. MoneyPlant ATM In a major step towards ushering in convenience-Banking for the Customers, Karnataka Bank has entered into ATM sharing arrangement with NPCI-NFSand CashTree ATM network. The NFS network with NPCI has 54 Member Banks and covers around 73,823 ATMs while CashTree network has 13 member Banks and covers around 7400 ATMs. All Debit & MoneyplantTM International Visa Debit Card/MoneyplantTM ATM card holding customers of Karnataka Bank can avail the facility of withdrawal through Banks' MoneyPlantTM ATMs and shared network ATMs. Member Bank ATMs. All The Member Banks' customers of both networks can avail of acquirer services at all Karnataka Bank ATMs across the country.




Shri K.H. Shivaswamy

Shri P. Jairama Hande

Shri M.V.C.S. Karanth

Shri B. Ashok Hegde



An investor desirous of holding his securities in electronic form can open a demat account __________________________________ SAGAR BUSINESS ACADEMY. is known as a Beneficial Owner (BO). Under the depository system. Participant (DP) can be a Bank also. In India. a Depository institution extends various services to the investors through its agents known as Depository Participant. the name of the Depository will appear as the Registered Owner against those securities which are held by the BO in his demat account with that Depository. PREREQUISITES OF OPENING A DEMAT ACCOUNT: The formalities involved in opening a bank account and a demat account are similar. However. Participant can be anybody who complies with the eligibility requirements. a demat account holder or holder/owner of securities who is entitled to all the benefits (such as dividend or interest/bonus or right shares etc). All the various functions undertaken and enabled through Demat accounts is referred to as DP activity. in the books of the issuer company.BANGALORE 55 . now there are two Depositories. As a further step towards this Karnataka Bank has become a Depository Participant of Central Depository Services (India) Limited (CDSL) and has launched the DP services from 16-03-2006.EFFECTIVE RECOVERY OF LOANS DEPOSITORY PARTICIPANT SERVICES Karnataka Bank has been foraying into newer areas of banking products and services to meet the increasing needs of its customers. They are CDSL and NSDL. INTRODUCTION TO DEPOSITORY SERVICES: A Bank where its Head Office provides the facility of opening and conduct of Accounts through its branches.

BANGALORE 56 . photograph and proof of address. An agreement with the DP in the prescribed format is to be executed by paying requisite stamp duty. __________________________________ SAGAR BUSINESS ACADEMY.EFFECTIVE RECOVERY OF LOANS with a DP of his choice by completing necessary account opening formalities after furnishing proof of his/her identity.

with a statement of account. He can also tender the securities held by him/her in physical form to DP for dematerialization and credit to the demat account. the BO can cause credit of fresh purchases of securities to his demat account and/or transfer the balances held in demat account held with other DP to this newly opened demat account. In the reduced settlement cycle era. In order to facilitate a CDSL demat account holder to easily adapt to the fast reducing settlement cycle. The details and balance in the BO account recorded and maintained with the Depository are available to DPs in their office through the continuous connectivity via V-sat or leased lines. the quest for account status information has risen manifold. at regular intervals. CDSL has introduced Internet-enabled services called "easi" and "easiest" to empower a demat account holder in managing his securities 'anytime-anywhere' in an efficient and convenient manner.BANGALORE 57 . DP forwards the physical securities (duly defaced) either to the company or to their duly appointed RTA (Registrar and Transfer Agent) who. Further to effective risk control __________________________________ SAGAR BUSINESS ACADEMY. After necessary verification.EFFECTIVE RECOVERY OF LOANS DEMATERIALISATION OF SECURITIES: After getting the demat account number from the DP. The DP is required to provide the BO. destroys the certificates in physical form and authorizes the depository to give corresponding (electronic) credit to the subject demat account. which gives the details of transactions and closing balance. all in a state-of-the-art secure environment. investors require updated demat account information at a much faster pace than ever before. after necessary scrutiny. FREE FACILITIES BY CDSL TO ITS DEMAT ACCOUNT HOLDERS: The evolution of the Indian capital market has seen several enhancements during the past few years and this has been a result of innovative use of newer technologies. In other words.

MUTUAL FUND DISTRIBUTION In our pursuit of accomplishing the goal of becoming One Stop Financial Supermarket we have been foraying into newer areas of banking products and services to meet the increasing needs of our customers. INTEGRATED 3-IN-1 ACCOUNT Your KBL Online Trading is a 3-in-1 account. As a further step towards this. we have entered into a Distribution Agreement with the following AMCs for distribution of their mutual fund products. 3. 1.Demat and Trading account. M/s.BANGALORE 58 .EFFECTIVE RECOVERY OF LOANS mechanism for monitoring of demat account.. convenience. integrating your Savings. Revolutionize the Way2Trade Online. Franklin Templeton Asset Management India (P) Ltd. blending the best of technology. ICICI Prudential Asset Management Company Ltd. CDSL has also introduced "smart" facility.. The savings and Demat accounts will be of Karnataka Bank while your trading account will be of Way2Wealth Brokers Pvt. M/s. 2. speed and efficiency with Traditional Broking.. Your KBL Online Trading is a dynamic online trading system. M/s. with KBL online trading services Welcome to KBL Online Trading Services in alliance with M/s Way2Wealth Brokers Pvt. Ltd. MOST CONVENIENT WAY2TRADE ONLINE __________________________________ SAGAR BUSINESS ACADEMY. Tata Asset Management Ltd.

Flexibility to transact through other channels too You get 24x7 access to your trading account online. thus. you have the power and convenience to trade without any geographical limits. In a dynamic market. you can place orders on phone while you are on the move. 2. plus incase you are at a place where there is no internet connectivity or at a place where you do not have access to a computer you can use the Call 'n' Trade facility. Option to link existing Karnataka Bank Savings and Demat account If you are an existing client of Karnataka Bank having a Savings Bank account and/or Demat account to avail Online Trading facility you only need to have your accounts internet enabled and an online trading from Way2Wealth. 3. anytime. ADVANTAGES 1. It is Swift. Trade anytime/anywhere Buy/Sell shares on a click from anywhere. Safe and convenient. where __________________________________ SAGAR BUSINESS ACADEMY. You can place trades after the closing of regular market hours or before the start of market hours 4. Trade After or Before Market Hours too Get the Convenience of putting trades anytime.EFFECTIVE RECOVERY OF LOANS KBL Online Trading offers the convenience of trading from any internet enabled location with highest levels of professionalism and security. offering one solution for all markets with suitable trading platforms for Beginners and Active investors.BANGALORE 59 . 5. Instant execution Get real-time quotes on your screen and experience instant trade execution without having to wait for your call to be answered by your broker.

In case of technical problems. Highest Levels of Security KBL Online account is protected with a unique User ID and 2-levels of password authentication. Get advanced investment research and technical analysis at no additional cost.e your Trading Screen. 7. bank and depository accounts. 6. 10. All your online transactions take place over a secure connection enabled on Secure Socket Layer with encryption upto 256-bit.EFFECTIVE RECOVERY OF LOANS speed is of essence. Superior Customer Service A dedicated customer care desk gives you complete assistance related to your trading __________________________________ SAGAR BUSINESS ACADEMY. the strongest encryption level for eCommerce transactions. Reduced Paperwork With an integrated trading. Investment ideas based on in-depth advisory and analytics KBL Online Trading Account holders have access to Way2Wealth research reports via one of the various means i. you can also allow physical cheque transactions. 8. instantly without delay. SMS. experience the convenience of reduced paperwork such as writing cheques and DP instructions. Online Trading is not only user friendly but eco-friendly too! 9. Seamless Fund Transfer Your transactions are further aided by Karnataka Bank online payment gateway through which you can transfer funds from your bank account to your trading account and get enhanced trading limits. DP Holdings etc online. this can make a big difference to your execution price.BANGALORE 60 . Your Contact Notes reach you in digital form and you can check all your Account Statements such as Ledgers.Emails and Newsletters. Bills.

 Margin Trading: Intra-day trades or trades made with the intension of not taking delivery of shares. You can trade upto a specified multiple of the funds allocated. NRI Modes of remittance of funds from abroad __________________________________ SAGAR BUSINESS ACADEMY. resorts to Cash Trading.BANGALORE 61 . PRODUCT FEATURES Single Screen Trading With your KBL Online Trading Account. before an appointed time. In other words. even before they are credited to your demat account on T+2.EFFECTIVE RECOVERY OF LOANS account. What you bought today can be sold tomorrow. The shares will automatically be credited to your demat account on the day settlement takes place in the stock exchange and your funds will be debited from your bank account at the time of transaction. No need to go through cumbersome paperwork. on the same day. Customer Support Centre is accessible on Toll Free No. 1800 .  Buy Today Sell Tomorrow facility: Buy Today Sell Tomorrow is a facility offered where you can sell shares before getting actual delivery of the same. Products on offer  Cash N Carry: When you make a trade (purchase) with the intention to take delivery of shares.425 .clients are allowed to sell their shares against their receivable position in same share/stock. providing you an opportunity to keep watch of different markets at the same time. The transactions will have to be squared off. IPO You can invest in Initial Public Offers online.67890 to answer your queries. you can trade on multiple-exchanges (Equity) through a Single Screen simultaneously.

 Deposit Renewal Request.... How to remit funds from abroad to an account in India? Funds can be remitted by means of Cable/TT through Nostro accounts maintained by us with our correspondent Banks as per details furnished below.... branch". of Mr.  Statement of Account Request.  Foreign Currency/Traveller's cheque tendered by the NRI during temporary visit to India....  Demand Draft issued by Exchange house in Gulf countries.  Cheque Book Request..(Swift .. third party account within the bank and across other banks. .. to the USD account number 8033166096 of Karnataka Bank Ltd. Please give the instructions as " Please credit USD . New York./Mrs.BANGALORE 62 . MoneyClick ..KARBINBB) held with Bank of New York.Internet Banking NRIs maintaining accounts in any of our branches can avail of this facility..  Standing Instruction Request..  Demand Draft Request.EFFECTIVE RECOVERY OF LOANS Cable/TT Remittance  Draft/Cheque drawn on foreign centre or payable on local banks. The hosts of facilities available are  Balance Inquire  Cheque status Inquiry  Fund transfer between self account..  Utility Bill Payment Facilities  SMS Banking  SMS Alerts __________________________________ SAGAR BUSINESS ACADEMY.. .. with Karnataka Bank Ltd.. USA (SwiftIRVTUS3N) for further credit to Account Number .

Verified by Visa(VbV) is a service that improves the security of payment transactions in the electronic commerce environment.EFFECTIVE RECOVERY OF LOANS MoneyPlant . It is a service that will let you use a personal password with your Karnataka Bank Moneyplant Visa Debit Card to make purchases over the Internet. The Customers can choose their products online and pay conveniently through MoneyClick. The process is simple to use and secure. Online Shopping Service through Internet Banking (MoneyClick): We have tied up with major shopping websites to facilitate online shopping for all our Internet Banking customers. The ecommerce transactions would facilitate and benefit the debit card holders for buying goods/services online through Internet which accept Visa as a payment method. though we gained independence in __________________________________ SAGAR BUSINESS ACADEMY. Online Shopping Service through Debit Card (ecommerce Transactions): MoneyplantTM International VISA Classic and Gold Debit card can now be used for online purchases.Visa International Debit Card NRIs are eligible for the Debit Card .Conditions apply.BANGALORE 63 .Our debit card holders can enjoy enhanced security of online shopping with Verified by Visa(VbV) by means of an additional password. movie tickets. pay mobile and utility bills online. THE BANKING SCENARIO 1. Our debit card holders would be able to buy airline/railway/bus tickets.Although Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786.

the then Prime Minister of India. Karnataka Bank has secured "A1+" rating for its Certificates of Deposit program from ICRA. 1969. kick-started the banking sector in India. Capital funds of the Bank stood at Rs.57 crore. 1950. In the early 1990s. 2009 of the Bank speak volumes for its strong credentials. until the 1990s. Karnataka Bank Limited occupies an enviable and pride position in the comity of Private Sector Banks in the country today. After this. if I may say so. Government of India issued an ordinance nationalizing the 14 largest commercial banks from the mid-night of 19th July.EFFECTIVE RECOVERY OF LOANS the year 1947. I have some details of laudable performances of the Bank. by a swift and a sudden action. which came to be known as New Generation tech-savvy banks. This move. Indian banking industry was not a critical tool. Indira Gandhi.1990. the Government of India controlled around 91% of the banking business of India. namely. Net profit of the bank went up to Rs. By the 1960s. At the same time. __________________________________ SAGAR BUSINESS ACADEMY. closer to the average growth rate of the Indian economy. government banks. A second dose of nationalization of six more commercial banks followed in 1980. The financial results of the year ended 31st March. 2. It is stated that instruments rated in this category carry the lowest credit risk in the short term. private banks and foreign banks.32143 crore. which has seen rapid growth with strong contribution from all the three sectors of banks. Under the political leadership of Smt. the nationalized banks grew at a pace of around 4%.266. along with the rapid growth in the economy of India.70 crore. and though Republican Indian Constitution was brought into force on 26th January.BANGALORE 64 . the Indian banking industry became an important tool to facilitate the development of the Indian economy. thus indicating highest quality rating to short term instrument. With the second dose of nationalization. The total business of the Bank surpassed Rs. it had emerged as a large employer.the then Narasimha Rao government embarked on a policy of liberalization and gave licenses to a small number of private banks. to monitor the growth and development of the Indian economy till 1960.

96. varied and versatile dispensations marked by personalised and dedicated services. and above all. and all of them richly deserve compliments from the society.25% respectively. But. 74000patron-shareholders and over 4 million patron-clientele.EFFECTIVE RECOVERY OF LOANS The Capital Adequacy Ratio (CAR) of the Bank was 13. As you know. services of NRIs and its performance in user-friendly loan schemes are quite laudable and astounding. My exposure in these fields is almost nil.98% and 1. The success of the bank is built upon sacrifices and services of its founders and successive Boards of Directors and staff of the Bank. thanks to a host of illustrious and imaginative founderpromoters. Karnataka Bank Limited. I mean. This astounding success should go to and be shared by its illustrious founders. The Bank which has been consistently paying dividend over the years has paid a dividend of 60% for the year 2008-09.48 under Basel II and 13. Their selfless and single-minded devotion to give their best to the society resulted in the birth of the Bank. the most dedicated services rendered by the successive Boards of Directors and staff of the Bank. The earning per share (EPS) was Rs. which occupies an enviable position in the comity of Private Sector Banks in the country today. I am only a client of the Bank. established in the year 1924. is a highly progressive bank with a vision and mission of a unique corporate personality. Bank's Net NPA and the return on assets stood at 0. The seed sown in a spirit of love and compassion by the founding fathers has grown into a big tree bearing fruits on all its 461 branches spread across the country. I have __________________________________ SAGAR BUSINESS ACADEMY. The Bank's rural orientation programmes.21. 4. 3. Karnataka Bank Limited. well above the RBI prescription of 9%. I am neither an economist nor a banker. Over 85 years of its fruitful existence has stood the test of time by its steady growth and vast.54% under Basel I. The untiring efforts of the founder members with their burning passion to serve the community have given the bank a firm footing assimilating the past with astounding flexibility to adapt to the sea changes sweeping the banking industry especially after nineteen hundred nineties.BANGALORE 65 . The Bank has a highly dedicated team of around 5300 employees ably patronized by over 74000 shareholders and over 4 million clientele base.

at the outset. This was possible mainly due to the integration of the newly industrialized countries and much of the developing nations. Indian Banking. Globalization and recent global recession undeniably have their impact on Indian economy and consequently human rights of the people in this country. Global recession. when I was called upon to speak on any topic of my choice as a part of Karnataka Bank's Founders Day Celebrations. I wish to tell you that my comments and observations in the course of the lecture should not be taken to be an expert opinion. I thought of speaking on the topic "Globalization.EFFECTIVE RECOVERY OF LOANS considerable exposure in law in general. Globalization.BANGALORE 66 . It has been evolving for the past several years and gaining momentum day by day. Globalization intends to integrate the world into one capitalist political economy operating under a neo-liberal free market ideology. is a shift from a world economy based on national market economies to a borderless global market economy increasingly governed by one set of rules. but. my Lecture by no standard can be said to be a well-researched article. I proceed to the subject of my lecture. globalization means global economic liberalization. Having said it." But. The trend. developing a global financial system and a transnational production system which is based on a homogenized worldwide law of value. without much ado. a feeling of a layman of this country. Constitutional Law and Human Rights law in particular. Although __________________________________ SAGAR BUSINESS ACADEMY. In this context. at present. Therefore. In other words. who wants to share with an audience. Economic globalization as witnessed in the world today is not a new phenomenon. which consists of large number of experts on Indian economy. 5. The demise of the Cold War helped the emergence of a new aggressive competitive global economic order. Global Recession and Their Impact on Human Rights.

Media is used to impose the culture and power of the wealthy nations from the global North. __________________________________ SAGAR BUSINESS ACADEMY. The increasing mobility of jobs has created global workplaces and this has boosted international labour migration. The global financial market has created a new atmosphere to search for quick profits. 6. The global cultural bazaar promotes the notion of uniform cultural values and products across the world. (iii) the global financial network and (iv) the global workplace. The foreign exchange market is mainly dealing with currency speculation. The cultural bazaar and shopping mall intersect through the vehicle of advertising. In other words.has created a planetary supermarket.Richard Barnet of the Institute of Policy Studies describes globalization in terms of four increasing webs of global commercial activity: (i) global cultural bazaar. This idea influenced billions of people. (ii) the global shopping mall.the buying and selling of goods and services among countries . shaping their goals and homogenizing their tastes and attitudes towards a desired fantasy lifestyle. globalization of economies has also led to the globalization of media.EFFECTIVE RECOVERY OF LOANS globalization and market liberalization have made some progress in terms of economic growth in certain countries. the globalization and market-oriented economic reforms helped transnational companies shift their manufacturing units to developing countries. it has also had many negative impacts in developing societies.BANGALORE 67 . The unprecedented increase in global trade -. Media has become a powerful player in the globalization process. bet for or against foreign currencies. In fact. Because of this more people are crossing borders in search of jobs and in most conditions people are forced to work in inhuman conditions for lower wages.

On a cultural level. for short. and Western cultural expressions as the global culture. an Asian scholar. with a common destiny. (GB). and the spread of modern technologies of a consumerist culture. neo-liberal economic policies. that is the result of technology revolution in information and communication and the awareness of the unsustainability of the current way of life. globalization can be seen in two different perspectives: Globalization from above. GA arises from the control of the global information and communication networks by Western media corporations. They closely tie economic Globalization from Above to the political aspect in that (1) the source of pressure for change is the same. and global financial institutions in pressuring countries of the South to democratize. economic and cultural. and (2) close links are alleged between the ideologies of free markets and free societies.EFFECTIVE RECOVERY OF LOANS All these proved the fact that globalization is not a simple but a very complex set of process that operates at multiple levels . This translates as the adoption of a Western-style liberal democratic system of governance. for short.The transnational companies are the spearheads of globalization and have become the dominant economic and political force in the world economy.BANGALORE 68 . 7. Economic Globalization from Above entails countries of the South to accept . to allow unrestricted entry to transnational capital. including the wholesale liberalization of domestic economies.political. At the political level. (GA) and Globalization from Below. Increasing competition and pressure on transnational companies to increase profits leads to a relentless search for cheap labour markets. particularly the United States ofAmerica. In this era of globalization humanity is pursued as fundamentally one.within the parameters of the dominant World capitalist system -the imposition of structural Adjustment programmes. Many of the companies from the developed and the Newly __________________________________ SAGAR BUSINESS ACADEMY. According to Nikhil Aziz. 8. GA manifests itself in its action of the Western countries.

There may be short-term advances in the living standards of a small group of workers. at less than one-fifth of the price in other countries. when some workers elsewhere lead the race to the bottom. When work moves to less developed countries. The International Labor Resource and Information Group based at the University of Cape Town has described these phenomena a race downhill in which countries underbid each other. What it does bring are very profitable high-tech islands and Export processing Zones where they protect transnational capital. The main arguments are competitiveness and the need to survive. from social responsibility. those jobs may disappear. workers also end up underbidding one another. Because they cannot see an alternative.For example. The German car manufacturing company BMW and Lorean car manufacturers like Daewoo and Hyundai have already established their manufacturing units in Vietnam. A situation has arisen where many governments of developing countries no longer control the flow of financial capital.BANGALORE 69 . and the bottom means slave like conditions. The Export Processing Zones of many developing countries are catering to the needs of the transnational companies by way of providing cheap labour. with the help of the state. But for workers it is a race to the bottom. the shift does not automatically bring Western levels of employment and prosperity to the host countries. Nevertheless.EFFECTIVE RECOVERY OF LOANS Industrialized Countries (NIC) have shifted their manufacturing and service industries to developing countries. several major airlines now have their global accounting done in India. __________________________________ SAGAR BUSINESS ACADEMY. A large number of computer software companies from the United Statesare developing software in Bangalore. so they can no longer control their own economies. A report by UNCTAD notes that transnational companies encroach on areas over which sovereign responsibilities have traditionally been reserved for national governments.

Globalization has substantially contributed to the intensification of debt. deregulate the market. 10. Thus structural adjustment programs and import-export-led strategies of industrialization were part of a political and economic restructuring process. especially in the context of developing countries. a prelude to globalization. and decrease wages. this process opens up countries to globalization. privatize the state sector. At the same time globalization intensifies __________________________________ SAGAR BUSINESS ACADEMY. One such question is whether globalization of market-oriented economic system is essential for development and protection of human rights? While searching for an answer to this question we should analyze how we perceive the concept of development and human rights. In order to meet the mandates set by the SAP. Human rights have become an integral part of the process of globalization in many ways.BANGALORE 70 . More money is being spent on export orientation. social services. poverty and economic crisis in the developing world. The international lenders demand poor economies to divert substantial resources away from sectors serving domestic needs: withdraw all subsidies for poor people. development and human rights raises policy and legal questions. The Structural Adjustment Programmes (SAP) designed and imposed by the global creditor institutions is a typical instrument to create a favorable atmosphere for globalization. The relation between globalization.EFFECTIVE RECOVERY OF LOANS 9. which ultimately affects developing countries. In effect. which results in local economies becoming dependent on the integration with the world economy. a country spends less by cutting back government expenditures. and economic investments so that resources can be placed elsewhere. The Western countries are increasingly using their view of human rights concept as a yardstick to judge developing countries and to deal with economic and trade relations to extend development assistance.

EFFECTIVE RECOVERY OF LOANS impoverishment by increasing the poverty. stated that the right to development is an inalienable human right with the human being as the central subject to the right and that all the aspects of the right to development set forth in the Declaration of the Right to Development are indivisible and interdependent. economic. Several decades of discussion on alternative development model is withering away and a dominant model of market oriented development taking roots in that place. cultural and political process that aims at the constant improvement of the wellbeing of the entire population and of all individuals on the basis of their active. free and meaningful participation in development and in the fair distribution of resulting benefits". The preamble of the Declaration of the Right to Development. 11. It was further maintained that the right to development is the right of individuals. adopted by the UN General Assembly in 1986. cultural and political development. political. social. social. contribute to. __________________________________ SAGAR BUSINESS ACADEMY. A new model of development ideology is being promoted that is based on the market and its logic. insecurity. fragmentation of society and thus violates human rights and human dignity of millions of people. The 1990 UN Global Consultation on the Right to Development as a Human Right.BANGALORE 71 . A development strategy that disregards or interferes with human rights is the very negation of development. and enjoy continuous economic. and these include civil. describes "development as a comprehensive economic. in which all human rights and fundamental freedoms can be fully realized. groups and peoples to participate in. The aims and objectives of the so-called development models promoted by different governments or international development agencies are not compatible with human rights standards. social. and cultural rights.

In many cases. 12. That is what we see today. education and food subsidies. 13. oppression. A recession is a disease of an economy. recession is a decline in a country's gross domestic product (GDP) growth for two or more consecutive quarters of a year. social disparities and violations of human rights. liberalization has been accompanied by greater inequality and people are left trapped in utter poverty. opportunity. and ideologies produce injustice. __________________________________ SAGAR BUSINESS ACADEMY. A recession normally takes place when consumers lose confidence in the growth of the economy and spend less.EFFECTIVE RECOVERY OF LOANS As a result of the globalization process. etc. developing countries have seen the gaps among themselves widen. slashing health.Globalization has its winners and losers. The collapse of the economies of the Asian Tigers are examples of this. exploitation and mal-development in society. tends to slow down the growth as a part of the normal economic cycle. The systematic integration of the forces that are dominant in the globalization process intensifies human rights violations.BANGALORE 72 . The imperative to liberalize has demanded a shrinking of state involvement in national life. The Human development Report of 1997 revealed that poor countries and poor people too often find their interests neglected as a result of globalization. more negative effects are visible now. it ultimately causes increased impoverishment. cutting jobs. in many industrialized countries unemployment has soared to levels not seen for many years and income disparity to levels not recorded since last century. and uniting the world. market. With the expansion of trade. producing a wave of privatization. affecting the poor people in society. technological progress. Although globalization of the economy has been characterized as a locomotive for productivity. processes. Meanwhile. Global integration of the structures. foreign investment. which grows over a period of time. This takes me to Global Recession. In other words.

as they fear stocks values will fall and thus stock markets fall on negative sentiment. __________________________________ SAGAR BUSINESS ACADEMY. People have already lost the capacity to achieve an adequate standard of living for themselves and their families and they are denied of social protection and justice. Roughly 150 million people have already been pushed into poverty as a result of the food price crisis. particularly in developing countries.EFFECTIVE RECOVERY OF LOANS This leads to a decreased demand for goods and services. lay-offs and a sharp rise in unemployment. who were already greatly affected by dramatic rise in food and energy prices and by the challenges posed by the impact of climate change. Risk aversion. Number of people suffering from malnutrition. over a billion. 14. are the most vulnerable to the harsh effects of the downturn. which in turn leads to a decrease in production. the negative impact of the crisis on the enjoyment and realization of human rights is both evident and alarming. there is a global consensus that those who are already living in poverty. is quite alarming. but labour conditions are also likely to worsen due to the shortage of opportunities. import-export and overall GDP of an economy. While people in developed countries are feeling the impacts of the crisis. While the greatest impacts may be difficult to quantify. deleveraging and frozen money markets and reduced investor interest adversely affect capital and financial flows. In the world. more than fifty million new-born babies will not survive to see their first birth day due to malnutrition. Investors spend less. International Labor Organization has predicted loss of million and millions of jobs due to recession. as of today there is no doubt that the financial crisis does not only have financial and monetary implications.BANGALORE 73 . The financial crisis has exacerbated the difficult situation of the extreme poor. This is exactly what happened in US and as a result of contagion effect spread all over the world due to high integration in the global economy. Not only will there be more unemployment. and estimates project that the current crisis may push many more million into extreme poverty in coming years.

16. (II) India's growth process has been largely domestic demand driven and its reliance on foreign savings has remained around 1. The extent of impact has been restricted due to several reasons such as(I) Indian financial sector particularly our banks have no direct exposure to tainted assets and its off-balance sheet activities have been limited. (V) Rural demand continues to be robust due to mandated agricultural lending and social safety-net program (VI) India's merchandise exports are around 15 per cent of GDP. In India. India too has to weather the negative impact of the crisis due to rising two-way trade in goods and services and financial integration with the rest of the world. The credit derivatives market is in an embryonic stage and there are restrictions on investments by residents in such products issued abroad. Consumer price inflation too has begun to moderate. Despite these mitigating factors. has declined sharply. The world faces its worst recession since the 1930s. as measured by the wholesale price index (WPI). which is relatively modest.BANGALORE 74 . (III) India's comfortable foreign exchange reserves provide confidence in our ability to manage our balance of payments notwithstanding lower export demand and dampened capital flows.5 per cent in recent period. the world's poor and disadvantaged are bearing the brunt of the suffering resulting from the current global financial crisis and ensuing economic __________________________________ SAGAR BUSINESS ACADEMY. the impact of the crisis has been deeper than what was estimated by our policy makers although it is less severe than in other emerging market economies.As already said by me. (IV) Headline inflation.EFFECTIVE RECOVERY OF LOANS 15.

and are most likely to lose their jobs and access to social safety nets and services. migrants. These workers are most likely to be the first in line to losing their jobs not only because their status is called into question. Navi Pillay. Therefore. basic health care and education etc. minorities and persons with disabilities. as well as of water. She also __________________________________ SAGAR BUSINESS ACADEMY. in her address to a Special Session of the Human Rights Council on 20th February.BANGALORE 75 .EFFECTIVE RECOVERY OF LOANS turmoil. affordability of food and housing. because. particularly those in fiscal spending. particularly women and children. Taking into account the scenario pictured above. and that there is a clear risk of increased xenophobia as a result of the crisis. they stand at the frontlines of hardship. A human rights approach will contribute to making solutions more durable in the medium and long run. are not taken at the expense of the poor through cutbacks in basic services and social protection mechanisms and programmes. indigenous peoples . as appropriate. but also because they are employed in sectors that are particularly affected by the economic crisis. UN High Commissioner for Human Rights. to help developing countries and countries with economies in transition to strengthen their economies. 2009 called on the international community including the World Bank and the International Monitory Fund to draw on the full range of their policy advice and resources. maintain growth and protect the most vulnerable groups against the severe impacts of the current downturn. Ms. recession may give rise to xenophobic passions. it is necessary that the State should ensure that domestic policy adjustments. It is already seen that as an impact of recession migrant workers are already being affected in many countries. Worse. discriminatory practices and even attacks against migrants and their families. The State should also identify the specific needs and entitlements of vulnerable groups and individuals. The downturn in economies around the world has already undermined access to work. refugees. we see.

In the report of the Amnesty International. in the 400 pages report published by it. It has opined that structural policies based on market economics have widened the gap between the rich and the poor. and left hundreds of millions of people vulnerable to poverty with no safety net to catch them. Amnesty International has launched a new campaign titled – Demand Dignity: It has called on the world's strongest economic powers to set an example and defuse what is described as a human rights time bomb. they claim.BANGALORE 76 . According to Amnesty International. security issues. the response to global terror and the pursuit of economic recovery after the global economic meltdown has led to severe Human Rights violations amongst 157 countries. It has claimed that increasingly authoritarian governments have ignored the problem at hand. and too little. sustained economic recovery will not happen unless governments tackle human rights and bring an end to armed conflicts. The opinion of the Amnesty International deserves to be viewed very seriously by the States and it is their responsibility to take conducive and effective steps and measures to fight the vicious impacts of Globalization and Global Recession so as to ensure that the people of the world particularly marginalized segments of the people live with human dignity and decent living conditions of life. which is an international nongovernment human rights monitoring organization. 17. has opined. It has warned that the rising poverty in these countries could lead to instability and mass violence. __________________________________ SAGAR BUSINESS ACADEMY.It is apt to notice what Amnesty International. is being done to provide people with their basic needs. According to it. many factors were credited for the increasing levels of hunger and malnutrition.EFFECTIVE RECOVERY OF LOANS appealed to the States and the corporate world to ensure that their policies and practices do not jeopardize peoples human rights. In view of these findings.

In our current situation. The changing economic environment has a significant impact on banks and thrifts as they struggle to effectively manage their interest rate spread in the face of low rates on loans. It has been a challenge for banks to effectively set their growth strategies with the recent economic market.EFFECTIVE RECOVERY OF LOANS 18. This is mainly because money circles around banks. Today. A single scheme typically involves transferring money through several different countries so that the origin would not be tracked.BANGALORE 77 . others use banks for business transactions or borrow money from the bank for emergency or business __________________________________ SAGAR BUSINESS ACADEMY. 19. Money laundering happens in almost every country in the globe. rate competition for deposits and the general market changes. We have to realize that in the current situation of recession. it is predicted that banks will fail due to recession. industry trends and economic fluctuations. unstable and most of all. clients are demanding. Some store their money in the banks and eventually it will increase because of the interest. It is simply the business where stocks are hard to analyze. One of the major problems of banks is money laundering. source. Global Banking plays a big role in our economy. Each regulatory agency has their own set of rules and regulations to which banks and thrifts must adhere. the banking industry is being hit hard. In this scenario. Money laundering is simply the practice of engaging in financial transactions to conceal the identity. So how can we manage our banks' challenges? The banking industry is far one of the most difficult type of business to manage. what is the role of banking industry? As we all know the banking industry is a highly regulated industry with detailed and focused regulators. or destination of illegally gained money. The banks that are smaller are the ones that will most likely be hit by this recession since they can't cope up with the declination of the economy. Major issues mainly include the issues arising out of global recession. banks are being used in different ways.Experts enlist banks challenges into major and minor issues.

interests of the investors will be in jeopardy. The most common types of criminals who need to launder money are drug traffickers. technology plays a big part in every aspect of businesses around the world.BANGALORE 78 . building a good-will from the public is the most difficult thing to do. norms and business standards. terrorists and con artists. regulations. We are in the new age and as we all know.EFFECTIVE RECOVERY OF LOANS purposes. Further. because such acts on the part of the banks undeniably are anti-national and anti-people. Banks ought not to be parties for money laundering. banking should really be involved on how to respond to it. Especially in this recession. banks were seen as individuals and solo branches with no integration in them. corrupt politicians and public officials. The scenario is altogether different today. The minor issues are the problems with employees who fail to follow the prescribed rules. mobsters. 20. and we cannot deny that this is one of the necessary factors in order to succeed in this competitive world. New technologies are always being introduced that is why banks should also focus on finding these technologies to help them cope up. embezzlers. Drug traffickers are in dire need of good laundering systems because they deal almost exclusively in cash. A single mistake may reduce number of people who transact with the bank. For small banks. which causes all sorts of logistic problems.In the past. __________________________________ SAGAR BUSINESS ACADEMY. Earning trust from the people and quality of service is a must for all banks.

These are customer retention.BANGALORE 79 . cost reduction and product differentiation. Managing Director and Chief Executive Officer. __________________________________ SAGAR BUSINESS ACADEMY. particularly. Chairman and Sri P. who are well-known economists and bankers at the national level. has a critical and dynamic role to play in containing and overcoming the impacts of globalization and global recession as well as in nurturing and protecting human rights of the people by adopting customer-centric services. with the kind of concern. and host of other distinguished personalities who constitute the Board of Directors of Karnataka Bank Ltd. Banking industry. commitment and devotion possessed by the managerial and ministerial staff of the bank.EFFECTIVE RECOVERY OF LOANS It is stated that there are three concerns that affect the banks' performance critically and sometimes dramatically. women. I wish them all the best in their pursuits. tribals. as a whole. I have no doubt that under the able and pragmatic stewardship of Sri Ananthkrishna. Karnataka Bank would rise to the occasion and serve the interest of banking industry as well as humanitarian interests of the large populace of this country. JayaramBhat. children and other backward classes in the expected measure in the critical years ahead. cost pressure and increased competition. the interests of marginalized segments of the society like Dalits.


EFFECTIVE RECOVERY OF LOANS DESIGN OF THE STUDY Research design 1. Statement of problem The study relates to analysis of the effective recovery of loans and advances with reference to Karnataka bank. To know about the functioning of in the field of Loans and Advances. To study the faults in lending loans and advances. __________________________________ SAGAR BUSINESS ACADEMY. To know the techniques used by the bank to recover the loans.BANGALORE 81 . To know the NPA condition of the bank. which provides loans and advances when it is required by individual or companies and accepts the deposits from the public. Objectives: • • • • • • • • • To know the various types of loans and advances provided by the bank. 2. Karnataka bank is one of the private sector banks in India. To know the effectiveness of recovery of loans and advances. To know about the percentage of recovery of loans. To study the importance of advances in the area. To study about the lending policy followed by the bank.

• The data derived may not be accurate up to mark. Lot of errors may prevail in the data collection process. • • Detailed analysis was not possible because of non availability of the sufficient data.BANGALORE 82 . which is responsible for the completion of any project. income and expenditure statement. Secondary data collection: Through internet. __________________________________ SAGAR BUSINESS ACADEMY.EFFECTIVE RECOVERY OF LOANS Methodology: Sources of data collection: The data is most vital and the integral aspect. journals. The data can be gained and derived from two methods. The project report would be more specific and more informative if more time would be allotted. annual reports. Especially the data collected by the primary sources may contain errors. magazines. that is: o Primary data collection o Secondary data collection Primary data collection: Personal observation in to the banking system Discussion and clarification with the guide and other managers • Taking personal guidance from the employees working in that organization. The study is confined to the extent of information provided by the banker and it is assumed to be factual and validity is not questioned. Limitations: • The time is the main constraint of this project.


87 72675.25 2540. But in the year 2009 again balance outstanding and NPA increased to Rs 83600. 65.BANGALORE 84 .EFFECTIVE RECOVERY OF LOANS • ANALYSIS & INTERPRETATION OF DATA TABLE 1: KBL Apna Ghar: [ Housing Loan for Scheme for resident individuals] YEAR 2007-08 2008-09 2009-10 Balance outstanding (Rs.82 and 3206. __________________________________ SAGAR BUSINESS ACADEMY.29 lakhs respectively.05 lakhs.82 83600.81 respectively.25 lakhs and Rs 2724.380. In lakhs) 65380.05 ANALYSIS & INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.87 Lakhs and 2540.29 3206. In NPA lakhs) (Rs.81 2724. But in the year 2009 there was a slight increase in both balance outstanding and NPA which was 72675.

issue of loan has been increased simultaneously their NPA amount has been decreased.EFFECTIVE RECOVERY OF LOANS From the above graph it is clear that. By this we can interpret that their recovery of loans & advances is effective in this type of loan.BANGALORE 85 . GRAPH 1: KBL Apna Ghar: [ Housing Loan for Scheme for resident individuals] __________________________________ SAGAR BUSINESS ACADEMY.

79 1407.82 0. In lakhs) 1402.62 2.23 1286.00 6. NPA In lakhs) (Rs.EFFECTIVE RECOVERY OF LOANS TABLE 2: KBL Housing Finance for NRIs: [Housing loan scheme for NRI’s] YEAR Balance outstanding.16 2007-08 2008-09 2009-10 ANALYSIS & INTERPRETATION: __________________________________ SAGAR BUSINESS ACADEMY.BANGALORE 86 . (Rs.

1402.EFFECTIVE RECOVERY OF LOANS In the year 2008 balance outstanding and NPA were Rs.82 lakhs respectively. But in case of NPA it case decreased to 0.16 lakhs. In the year 2009 again balance outstanding and NPA increased up to Rs 1286. But in the year 2009 there was a slight decrease in balance outstanding which was 1407. the bank has reduced lending loan in this type of loan might be due to less chances of recovering loan where the NPA has been __________________________________ SAGAR BUSINESS ACADEMY.79 Lakhs and 2. GRAPH 2: KBL Housing Finance for NRIs: [Housing loan scheme for NRI’s] By analyzing the above graph we can say that.62 lakhs and Rs 6.BANGALORE 87 .23.00.

93 respectively.09 Lakhs and 473. the recovery of loans & advances is little less in this type of loan.70 ANALYSIS & INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs. (Rs.97 and 613. TABLE 3: KBL Car Loan: [Car Finance Scheme] YEAR 2007-08 2008-09 2009-10 Balance outstanding.57 613. 17247.97 25845. So we can interpret that. In NPA lakhs) (Rs.73 473. In the year 2010 there is an increase of balance outstanding by Rs 25845.70 lakhs.57 lakhs respectively.EFFECTIVE RECOVERY OF LOANS increased suddenly. 575.93 575.09 21506. __________________________________ SAGAR BUSINESS ACADEMY. In lakhs) 17247. But in the year 2009 there was an increase in both balance outstanding and NPA which was 21506.73 lakhs and NPA decreased to Rs.BANGALORE 88 .

17247.EFFECTIVE RECOVERY OF LOANS From the above analysis it is clear that. as the bank is quite good in recovering the issued loans.09 Lakhs and 473.93 respectively.97 and 613. the recovery of loans and advances is quite good in this type of loan. GRAPH 3: KBL Car Loan: [Car Finance Scheme] ANALYSIS & INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs. the bank has increased its lending. But in the year 2009 there was an increase in both balance outstanding and NPA which was 21506. So we can interpret that.BANGALORE 89 . In the year 2010 __________________________________ SAGAR BUSINESS ACADEMY.57 lakhs respectively.

92 and 76. the bank has increased its lending.52lakhs.25 lakhs respectively. etc.16 respectively.52 711.06 NPA (Rs. In the year 2010 there is an increase of balance outstanding by 782.] YEAR 2007-08 2008-09 2009-10 Balance outstanding.52 ANALYSIS & INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.70 lakhs. 575. (Rs. TABLE 4: KBL Udyog Mithra: [Professional loan for lawyers. In lakhs) 696. __________________________________ SAGAR BUSINESS ACADEMY. 696.BANGALORE 90 .06lakhs and NPA decreased to Rs52.73 lakhs and NPA decreased to Rs. So we can interpret that. as the bank is quite good in recovering the issued loans.80 782.52 Lakhs and 97. charted accountant. the recovery of loans and advances is quite good in this type of loan.16 52.25 76.EFFECTIVE RECOVERY OF LOANS there is an increase of balance outstanding by Rs 25845. But in the year 2009 there was a slight increase in both balance outstanding and NPA which was 711. In lakhs) 97. From the above analysis it is clear that.

So we can interpret that.] __________________________________ SAGAR BUSINESS ACADEMY. etc. the effective recovery of loans exists in this type of loan.EFFECTIVE RECOVERY OF LOANS From the above graph it is clear that. GRAPH 4: KBL Udyog Mithra: [Professional loan for lawyers.BANGALORE 91 . as they are good in recovering the issued loans and advances. charted accountant. the bank has increased its lending.

15240.25 ANALYSIS& INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.] YEAR Balance outstanding. But in the year 2009 there was a slight increase in both __________________________________ SAGAR BUSINESS ACADEMY. (Rs.19 lakhs respectively.80 Lakhs and 1148.19 1240.80 16664. In lakhs) 2007-08 2008-09 2009-10 15240.BANGALORE 92 .65 18535.EFFECTIVE RECOVERY OF LOANS TABLE 5: KBL Varthak Loan: [working capital loans for traders. agents etc.56 791. NPA In lakhs) (Rs.51 1148.

] __________________________________ SAGAR BUSINESS ACADEMY.BANGALORE 93 .EFFECTIVE RECOVERY OF LOANS balance outstanding and NPA which was 16664. agents etc.51 lakhs and NPA decreased to Rs 791. In the year 2010 there is an increase of balance outstanding by Rs 18535.56 respectively. the bank has increased its lending. the effective recovery of loans exists in this type of loan.25lakhs. as they are good in recovering the issued loans and advances. From the above graph it is clear that. GRAPH 5: KBL Varthak Loan: [working capital loans for traders. So we can interpret that.65 and 1240.

76 179. In lakhs) 2007-08 2008-09 2883.41 2596. NPA In lakhs) (Rs.96 __________________________________ SAGAR BUSINESS ACADEMY. (Rs.69 173.BANGALORE 94 .EFFECTIVE RECOVERY OF LOANS TABLE 6: KBL Easy Ride: [ Two wheeler Loan] YEAR Balance outstanding.

as they are good in recovering the issued loans and advances.88 ANALYSIS& INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.88 lakhs.BANGALORE 95 . the bank has increased its lending. .69 lakhs respectively.96 lakhs respectively. But in the year 2009 there was a slight decrease in both balance outstanding and NPA which was 2596.46 lakhs and NPA decreased to Rs 100. From the above graph it is clear that. the effective recovery of loans exists in this type of loan. In the year 2010 there is an increase of balance outstanding by Rs 2851.EFFECTIVE RECOVERY OF LOANS 2009-10 2851.46 100.76 and 173. GRAPH 6: KBL Easy Ride: [ Two wheeler Loan] __________________________________ SAGAR BUSINESS ACADEMY.41 Lakhs and 179. 2883. So we can interpret that.

BANGALORE 96 .EFFECTIVE RECOVERY OF LOANS TABLE 7: KBL Vidhyanidhi: [ Educational loan] __________________________________ SAGAR BUSINESS ACADEMY.

the recovery of loan in this type is little less.43 Lakhs and 53. In the year 2010 both balance outstanding and NPA increased to Rs 9268.09 9268.09 137. (Rs.13lakhs and 159.43 7356. In this type of loan the bank is still issuing loans even though their recovery is low.54 respectively. So we can understand that.13 53.09 and 137.26 ANALYSIS & INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.09 lakhs respectively. In lakhs) 2007-08 2008-09 2009-10 5549.BANGALORE 97 .26 lakhs. GRAPH 7: KBL Vidhyanidhi: [ Educational loan] __________________________________ SAGAR BUSINESS ACADEMY. NPA In lakhs) (Rs. But in the year 2009 there was a slight increase in both balance outstanding and NPA which was 7356.54 159.EFFECTIVE RECOVERY OF LOANS YEAR Balance outstanding. 5549.

EFFECTIVE RECOVERY OF LOANS TABLE 8: Loan to Salaried Persons:[Loan institutions] for permanent employees of any reputed __________________________________ SAGAR BUSINESS ACADEMY.BANGALORE 98 .

From the above table and graph we can understand that.08 lakhs.15 1503. But in the year 2009 there was a slight decrease in both balance outstanding and NPA which was 8831.08 ANALYSIS & INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.51 respectively.EFFECTIVE RECOVERY OF LOANS YEAR Balance outstanding. In lakhs) 2007-08 2008-09 2009-10 10098.33 lakhs respectively. So we can interpret that. NPA (Rs. 10098. the bank has reduced its lending.93 and 1506.15 lakhs and Rs 890. In lakhs) (Rs.51 890.86 Lakhs and 1503. the recovery of loans and advances is good in this type of loan. even though the recovery of loans is effective.33 1506.BANGALORE 99 .93 7765. GRAPH 8: __________________________________ SAGAR BUSINESS ACADEMY. In the year 2010 both balance outstanding and NPA have decreased to Rs 7765.86 8831.

EFFECTIVE RECOVERY OF LOANS Loan to Salaried Persons:[Loan for permanent employees of any reputed institutions] TABLE 9: KBL Niveshan Loan: [Loan for the purchase of house sites] __________________________________ SAGAR BUSINESS ACADEMY.BANGALORE 100 .

98 Lakhs and 84.62 lakhs and 95.98 2004.52 84. In lakhs) 2007-08 2008-09 2009-10 2976.26 lakhs respectively. But in the year 2009 there was a decrease in both balance outstanding and NPA which was 2004.55 59. The bank has reduced issuing this kind of loan as there is less demand for this type of loan.BANGALORE 101 .55 lakhs respectively.EFFECTIVE RECOVERY OF LOANS YEAR Balance outstanding. NPA In lakhs) (Rs.26 95. (Rs.44 ANALYSIS& INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.52 and 59. 2976.44. In the year 2010 there is a drastic decrease in both balance outstanding and NPA of 701. GRAPH 9: KBL Niveshan Loan: [Loan for the purchase of house sites] __________________________________ SAGAR BUSINESS ACADEMY.62 701.

bars and coins etc] __________________________________ SAGAR BUSINESS ACADEMY.BANGALORE 102 .EFFECTIVE RECOVERY OF LOANS TABLE 10: KBL swarna Nidhi: [loan for purchasing gold ornaments.

24 2007-08 2008-09 2009-10 ANALYSIS& INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.63 Lakhs and 17. GRAPH 10: KBL swarna Nidhi: [loan for purchasing gold ornaments.64 and 21.63 201. In lakhs) 205.57 lakhs and Rs 20.64 132.24 lakhs. In the year 2010 there is a decrease in both balance outstanding and NPA of Rs 30. 205. the bank has reduced issuing this type of loan and the NPA has also reduced.EFFECTIVE RECOVERY OF LOANS YEAR Balance outstanding.64 respectively.10 17.57 lakhs respectively. From the above table it is clear that.57 21. bars and coins etc] __________________________________ SAGAR BUSINESS ACADEMY.64 20. But in the year 2009 there was a slight decrease in both balance outstanding and NPA which was 201.BANGALORE 103 . so we can clearly say that the recovery of this type of loan is effective. NPA In lakhs) (Rs. (Rs.

EFFECTIVE RECOVERY OF LOANS TABLE 11: KBL Insta Cash: [ loan to persons aged above 18 years for consumption purpose] __________________________________ SAGAR BUSINESS ACADEMY.BANGALORE 104 .

the amount of loan issued this year is more in comparison with the last year.EFFECTIVE RECOVERY OF LOANS YEAR Balance outstanding.82 15. It is also clear that.75 28. NPA (Rs.75 lakhs and NPA decreased to Rs 15.22 Lakhs and 28.22 2170. But in the year 2009 there was a slight decrease in both balance outstanding and NPA which was 2170.13 lakhs. the recovery of loans is effective.53 46.BANGALORE 105 . From the above table it is clear that.13 ANALYSIS: In the year 2008 balance outstanding and NPA were Rs. In the year 2010 there is an increase of balance outstanding by Rs 3602.31 and 46.82 respectively. In lakhs) 2007-08 2008-09 2009-10 3048. 3048. In lakhs) (Rs.53 lakhs respectively.31 3602. as the NPA has also been reduced from last year GRAPH 11: KBL Insta Cash: [ loan to persons aged above 18 years for consumption purpose] __________________________________ SAGAR BUSINESS ACADEMY.

EFFECTIVE RECOVERY OF LOANS . TABLE 12: KBL Vahana Mitra: [ Loan for purchasing vehicles like cars. bus etc] __________________________________ SAGAR BUSINESS ACADEMY.BANGALORE 106 .

But in the year 2009 there was a slight increase in both balance outstanding and NPA which was 12183. In the year 2010 there is an increase of balance outstanding by Rs 15127.01 respectively. 10911. bus etc] __________________________________ SAGAR BUSINESS ACADEMY.BANGALORE 107 .87 ANALYSIS& INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.28 lakhs and NPA decreased to Rs 614.99 and 619.01 614.61 12183.EFFECTIVE RECOVERY OF LOANS YEAR Balance outstanding.87 lakhs.61 Lakhs and 400. In lakhs) 2007-08 2008-09 2009-10 10911. In NPA lakhs) (Rs.32 619.28 400.32 lakhs respectively.99 15127. (Rs. GRAPH 12: KBL Vahana Mitra: [ Loan for purchasing vehicles like cars.

In lakhs) 3031.BANGALORE 108 .42 3399. NPA In lakhs) (Rs.EFFECTIVE RECOVERY OF LOANS TABLE 13: KBL Krishik Sarathi: [ loans for buying tractors etc YEAR Balance Outstanding.19 2007-08 2008-09 __________________________________ SAGAR BUSINESS ACADEMY.43 221.97 33. (Rs.

From the above table it is clear that.28 lakhs and NPA decreased to Rs 614.97 lakhs respectively.76 ANALYSIS& INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs. In the year 2010 there is an increase of balance outstanding by Rs 15127. 3031. 33. But in the year 2009 both balance outstanding and NPA have been increased to Rs.43lakhs and Rs.19lakhs respectively. the recovery of loans is effective as the NPA has reduced from last year to this year.87 lakhs.BANGALORE 109 .42lakhs and Rs. 221.EFFECTIVE RECOVERY OF LOANS 2009-10 4438. 3399.93 203. GRAPH 13: KBL Krishik Sarathi: [ loans for buying tractors etc] __________________________________ SAGAR BUSINESS ACADEMY.


03.2009 to Rs. 284 crores as on 31. 171 crores as on 31. asset recovery branches and steps under SARFAESI Act 2002 for the speedy takeover and disposal of the assets of defaulting borrowers resulted in reduction of gross NPA Rs. __________________________________ SAGAR BUSINESS ACADEMY. From Lender’s point of view: 1.BANGALORE 111 .2010.03.EFFECTIVE RECOVERY OF LOANS FINDINGS AND SUGGESTIONS FINDINGS: The bank has been focusing on containing the non performing assets through better credit monitoring as well as intensified drive for the recovery of the impaired assets. The bank has a good lot of finance and well written procedure for the purpose of lending of advances to the borrowers.

They have the right to take appreciable collateral security against advances. 5. accounts are converting into NPA. Banks are lending their funds in almost all area of business including agricultural sector. to demand any type of document related with them. mainly for the feasibility study of the project. 11. Also there may not have good customer relationship between bank and the borrower. 6. There may have less activeness of the advances collection unit of the bank. They have the power of rejecting the proposal as per the appraisal of the projects and also have power to monitor. inspect and visit the industry. 3. also the uncertainty affects the viability of the projects. thus the risk is very high.EFFECTIVE RECOVERY OF LOANS 2. In the sense of legal proceedings. Also the procedure of lending is detail but due to some flaws. 10. 4. Proper monitoring and follow up the project is lagging. In some cases banks are providing advances without proper security and also due to the influence of certain person. __________________________________ SAGAR BUSINESS ACADEMY. 8. to file a suit against borrower if needs and also can seek the help from the consulting firms for their own purpose. it is very slow in India. Some security may be overvalued by the borrower which may have deposited against the advances. Advances of bank are not safe after lending the amount due to uncertainty.BANGALORE 112 . 7. 9. The combined lending by more than one bank may or may not be advantageous always.

They are not able to commerce the business at perfect time due to which they are lagging in export. Some scans are also affecting the borrowers in their business performance. It has a high opportunity to play a key role in development of economy of the nation and also to help different sick units for their revival. Once the loan is borrowed. 4. diversification and expansions. 7.EFFECTIVE RECOVERY OF LOANS 12. 2. the bank’s performance depends on the borrower’s performance. 6. 8. Industrialists are lacking in the technical knowhow of the project. 5. That means they are showing attitude towards the repayment of advances and interest due to some flaws from the bank’s side. 3. Due to influence some cases banks are not able to recollect the advances with its invest. Most of the borrowers are willful defaulter. 9. The main problem of the banks is survival problems due to huge chunk of NPA and influential advances to the borrower.BANGALORE 113 . They are also lagging in proper management of funds and in diversification and expansion area. Borrowers are lacking of competing the market domestically and globally. As the bank has the power to monitor the industrialists’ performance constantly through every angle the borrower becomes laxative. 13. __________________________________ SAGAR BUSINESS ACADEMY. From borrower’s point of view: 1. Ineffective recovery of loans and delay in legal proceedings causes the advantage to the borrowers.

BANGALORE 114 . 20. If the company shows sickness. 19. 18. 11. Borrowers are mainly depends upon the share distributed to the public for purpose of lending finance. bank’s people always follow the borrower. borrower will be in deep analysis in the list of lender. In this case. This helps the borrower to delay the payment. those loans and advances are difficult to recollect. Once it is sanctioned. 14. Production of quality goods and services are another problem for the company to compete their product against globally and domestically too. Some borrowers are getting loans and advances without proper security. Once the company is in the profitable stage. 13.EFFECTIVE RECOVERY OF LOANS 10. The borrowers mention the reasons for NPA are very simple but it adversely affects the viability of the bank or financial institution. Borrowers are getting the supervisory facility by the bank. The main opportunity for the borrower is utilized their profit in the expansions and diversification. Suggestions from the study: __________________________________ SAGAR BUSINESS ACADEMY. 15. For each and every change made either in products or in management borrower have to inform bank. Once the loan is sanctioned. 12. 17. company will be appraised and encouraged. it is not easy to recall the loan. 16. Almost all the company are keeping some portion of finance as a loan. banks will end extra without any hesitation.

• The project appraisal must be perfectly made before sanctioning the loan. • There should not be any type of pressure and influence from any top and emir persons for the sanction of loan and advances. This will save the time of settlement of cases. This will motivate the borrower that bankers are taking care of them. This will reduce the major risk of the banks. This will enhance the efficiency of the offers and create clear and fair environment to work in the organization. They should perform their duty and responsibility very well.BANGALORE 115 .EFFECTIVE RECOVERY OF LOANS The following suggestions have been made for the purpose of reducing NPA in Banking Sectors: • To reduce the risk of lending. the bank should never lend their loans and advances without adequate collateral securities. • There should not be ny unethical practices by any of the officers of the banks. Ultimately it will increase the performance of the bank. This will help the bankers to find the present financial conditions of the __________________________________ SAGAR BUSINESS ACADEMY. • The communication between the bankers and the borrowers of all activities like transaction of business and other financial activities should always be well known. • Bankers should be given the power to enforce the security without approaching the judiciary which would take a long time for settlement. • The bankers should have to in continuous touch with the borrowers so that their attitude should not change towards the bank. This will help in reinforcing the project oneself to commit a wrong decision. • The bank should monitor and follow up the project in which they have lended their resources.

1. inspections. the attitude of the lender and borrower are changing due to some circumstances. 9. 3. Due to lagging in proper realizable security from the borrowers. banks are facing difficulty to recover its loans and advances. The monitoring mechanism of the bank is one of the reasons to become an account NPA. Bankers are lagging in continuous check. 4. In the majority of the cases both the banker and borrower are responsible to become an account NPA. Conclusion: As analyzed in the analysis and interpretation part the following conclusions have been drawn. 8. They have continuous monitoring and follow up deficiency. __________________________________ SAGAR BUSINESS ACADEMY.EFFECTIVE RECOVERY OF LOANS • Borrowers will ultimately helps the banker to take required decision about the project. The reasons may be different in their own sides. • Recapitalization of banks with Government aid. 7. if needed it can solved by the utilization of the internet. After lending the amount. At the time bank can ask for the required information as they needed for the performance evaluation of the project. 2. 5. The problem of NPA is behavioral as well as economic in nature. 6. The borrowers are turning towards willful defaulters due to some problem in procedure of debt realization. guiding to borrowers as there are the right of the banks.BANGALORE 116 .

CHAPTER 5 ANNEXURE • BIBLIOGRAPHY __________________________________ SAGAR BUSINESS ACADEMY.EFFECTIVE RECOVERY OF LOANS 10. From the bankers’ side the main fault is not having proper security or adequate security in some cases.BANGALORE 117 .

EFFECTIVE RECOVERY OF LOANS BIBLIOGRAPHY For the purpose of the study the following books have been Referred :- Books Referred: 1. www.wikipedia. encyclopedia.ask.BANGALORE 118 . www.google. Investment Management Website Referred: 1. K.com 3. Gupta : V. www. Management Accounting 2. Gupta : Shashi K.com 2.com : Shashi K. www. Financial Management 3.Bhalla __________________________________ SAGAR BUSINESS ACADEMY.com 4.

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