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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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EFFECTIVE RECOVERY OF LOANS 1.BANGALORE 7 . Based on this reasoning. Financial management as an academic discipline has undergone fundamental changes as regards its scope and coverage. efficient use of resources is universally recognized. It concerns with the application of skills in the manipulation. 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. creditors and investors. In fact. __________________________________ SAGAR BUSINESS ACADEMY. Without adequate finance no enterprise can possibly accomplish its objectives. Every enterprise. whether big or small. Finance management is that managerial activity which is concerned with the planning and controlling of a firms financial reserve. In the financial analysis a ratio is used as an index for evaluating the financial position and performance of the firm. 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. use and control of money. finance is defined as the provision of money at the time when it is required. and little significance was attached to the analytical thinking in the financial decision making and problem solving. finance is so indispensible today that it is rightly said to be the lifeblood of enterprise. needs finance to carry on its operations and to achieve its target. 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. In early years of its evolution it was treated synonymously with the raising of funds. In the current literature pertaining to this growing academic discipline.1 INTRODUCTION In our present day economy. Finance refers to the management of flows of money through an organization. a broader scope so as to include in addition to procurement of funds.

BANGALORE 8 . Mumbai. making it one of the biggest job creators in India and a mainstay of the national economy.76 billion and Philippines with $8. but the firms performance can be said good or bad only when net figures is related to the firm’s investment. Accounting ratios are relation expressed in the mathematical terms between figures that are connected with each other in the same manner. Pune. investors and others to form judgment about the operating performance and the financial strengths and weakness of the firm. But the accounting figures convey the meaning when it is related to some other relative information. The most prominent IT hub is IT capital Bangalore. 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. while providing employment to a significant number of its tertiary sector workforce. the recent global financial __________________________________ SAGAR BUSINESS ACADEMY. In 2010-11.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.2 INDUSTRIAL BACKGROUND The Indian Information Technology industry accounts for a 5. Hyderabad. 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.85 billion.19% of the country's GDP and export earnings as of 2009. NCR and Kochi. if we properly analyze the information reported in the statement. 1. However. India's outsourcing industry is expected to increase to US$225 billion by 2020.Rs 5 crore net profits may look impressive. Kolkata. For example :. More than 2. profit and loss account or the income statements are used by the management. annual revenues from IT-BPO sector is estimated to have grown over US$76 billion compared to China with $35. The information contained in the balance sheet. The other emerging destinations are Chennai. creditors.5 million people are employed in the sector either directly or indirectly.

telecommunications.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.20 million as of November. 2009.040. Mumbai by the Tata Group—were the country's largest software producers during the 1960s. and 7. third in numbers only to that of the United States of America and the Soviet Union. which have been growing phenomenally over the last few years.160. On 18 August 1951 the minister of education Maulana AbulKalam Azad. Formative Years (Till 1991) The Indian Government acquired the EVS EM computers from the Soviet Union.000 engineers in the country.BANGALORE 9 . India also has a total of 37. India developed a number of outsourcing companies specializing in customer support via Internet or telephone connections. inaugurated the Indian Institute of Technology at Kharagpur in West Bengal.000 mobile phone connections. In 1968 Tata Consultancy Services—established in SEEPZ.0% of the country's population. Each year India produces roughly 500.000. The first software export zone SEEPZ was set up here way back in 1973. and manufacturing industries. More than 80 percent of the country's software exports happened out of SEEPZ.000 telephone lines in use. which were used in large companies and research laboratories. As a result hiring has dropped sharply and employees are looking at different sectors like the financial service.000 Internet users—comprising 7. By 2009. the old avatar of the modern day IT Park. a total of 506.570. Possibly modeled after __________________________________ SAGAR BUSINESS ACADEMY. a total of 81. Total fixed-line and wireless subscribers reached 543. 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. although 12% of India's population can speak in English.EFFECTIVE RECOVERY OF LOANS crises has deeply impacted the Indian IT companies as well as global companies. out of them only 25% to 30% possessed both technical competency and English language skills. Mumbai in 80s. India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in partnership with Burroughs.

Kamdar (2006) reports on the role of Indian immigrants (1980 . By 1960 as many as 10. the Indian government embarked upon the creation of three wide-area computer networking schemes: INDONET (intended to serve the IBM mainframes in India). and the academic research oriented Education and Research Network (ERNET). many of whom came from India. The inception of The Computer Maintenance Company (CMC) followed in October 1976. 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.BANGALORE 10 . R. 1991–2001 Videsh Sanchar Nigam Limited (VSNL) introduced Gateway Electronic Mail Service in 1991. NICNET (the network for India's National Informatics Centre). Relaxed immigration laws in the United States of America (1965) attracted a number of skilled Indian professionals aiming for research. The National Informatics Centre was established in March 1975. MTNL underwent technological improvements. the 64 kbit/s leased line service in 1992. the Indian companies realigned wages to retain their experienced staff.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. Between 1977-1980 the country's Information Technology companies Tata Infotech. Patni Computer Systems and Wipro had become visible. Kapur (2006)By the 1980s a number of engineers from India were seeking employment in other countries.000 Indians were estimated to have settled in the US. Sarkar.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. and commercial Internet access on visible __________________________________ SAGAR BUSINESS ACADEMY. 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. In the Encyclopedia of India. In response. Between 1986-1987.

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

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

Banking in India has its origin as early as Vedic Period. The banking system of India should not only be hassle free but. and Bank of Hindustan. This was one of the three presidency banks.BANGALORE 13 . it should be able to meet new challenges posed by the technology and any other external and internal factors. Calcutta was the most active trading port. which started in 1786. For many years the Presidency banks acted as quasi-central banks. which originated in the "The Bank of Bengal" in Calcutta in June 1806. became the State Bank of India. which. During the days of East India Company it was the turn of the agency houses to carry on the banking business. foreign banks such as Credit Lyonnais started their Calcutta operations in the 1850s. mainly due to the trade of the British Empire. The first banks were The General Bank of India. The presidency banks were established under charters from the British East India Company. At that point of time. Banking in India originated in the first decade of 18th century. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. the other two being the Bank of Bombay and the Bank of Madras. the Reserve Bank was nationalized and given broader powers.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. as did their successors. The oldest bank in existence in India is the State Bank of India. and due to which banking activity took roots there and prospered. both of which are now defunct. After India's independence in 1947. A couple of decades later. They merged in 1925 to form the Imperial Bank of India. upon India's independence. 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. It is believed that the transition from money lending to banking must have occurred even before Manu. __________________________________ SAGAR BUSINESS ACADEMY.

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

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

The major steps to regulate banking included: • • • In 1948. paralyzing banking activities for months. and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. At the same time. India's central banking authority. it has emerged as a large employer. and it became an institution owned by the Government 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. This resulted into greater involvement of the state in different segments of the economy including banking and finance. control. control and regulations. the Reserve Bank of India. banks in India except the State Bank of India. Nationalization By the 1960s. was nationalized. the Indian banking industry has become an important tool to facilitate the development of the Indian economy. However. and inspect the banks in India. and no two banks could have common directors.BANGALORE 16 . In 1949." 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. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. and a debate has ensued about the possibility to nationalize the banking __________________________________ SAGAR BUSINESS ACADEMY. continued to be owned and operated by private persons. 1969. the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate. despite these provisions. This changed with the nationalization of major banks in India on 19th July. The Government of India initiated measures to play an active role in the economic life of the nation.

" The paper was received with positive enthusiasm. Thereafter. UTI Bank(now re-named as Axis Bank). Later on. New Bank of India was merged with Punjab National Bank. which came to be known as New Generation tech-savvy banks. 1969. The stated reason for the nationalization was to give the government more control of credit delivery. the GOI controlled around 91% of the banking business of India. 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. a national leader of India. ICICI Bank and HDFC Bank. With the second dose of nationalization. resulting in the reducing the number of Nationalized Banks from 20 to 19. her move was swift and sudden. one of the nationalized banks. in the year 1993. and it received the presidential approval on 9th August.BANGALORE 17 . described the step as a "masterstroke of political sagacity . and the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the midnight of July 19. Indira Gandhi." Within two weeks of the issue of the ordinance. 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. It was the first and only merger of a Nationalized Bank into a Nationalized Bank.After this. the nationalized banks grew at a pace of around 4%. __________________________________ SAGAR BUSINESS ACADEMY.EFFECTIVE RECOVERY OF LOANS industry. 1969. closer to the average growth rate of the Indian economy. the Parliament passed the Banking Companies (Acquition and Transfer of Undertaking) Bill. 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. A second dose of nationalization of 6 more commercial banks followed in 1980. Jayaprakash Narayan. until the 1990s.

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

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

the RBI undertook several interim measures.70% at the end of the Financial Year 07 mainly due to the increase in the loan assets of new private sector bank. 2007 amounted to Rs. deposits of foreign banks stood at 15. the loan assets of foreign banks aggregated Rs. As on March 2007. 2007.1%. 620 crores and accounted for 19. Co-operative Banks: Co-operative banks cater to the financing needs of agriculture.70% of the total loan assets of all Scheduled Commercial Banks and their total operating profits amounted to Rs. as part of the banking sector reform process and as a measure to induce competition in the banking sector.197.BANGALORE 20 . pending __________________________________ SAGAR BUSINESS ACADEMY.687 crores.77% at the end of the Financial Year 06 to 19.652 crores and accounted for 6.95% of the total assets of all Scheduled Commercial Banks and their total operating profits of the foreign banks as on March 31. there are 40 foreign banks operating in India with 236 branches. Private Sector Banks: In July 1993. At the end of the 2006. At the end of the Financial Year 06-07. small industry and self-employed businessmen in urban and semi-urban areas of India.42.65. The share of private sector banks in total loan assets has increased from 18. Foreign banks operate only in urban cities and metropolitan cities.EFFECTIVE RECOVERY OF LOANS operating profits amounted to Rs.5.8209 crores. In the light of liquidity and insolvency problems experienced by some cooperative banks in fiscal 2001. the RBI permitted entry by the private sector into the banking system. Foreign Banks: As on June 30. 485 crores. the total loan assets of private sector banks aggregated Rs. The Public Sector Banks large network of branches enables them to fund themselves out of low-cost deposits. The state land development banks and the primary land development banks provide long-term credit for agriculture. Some foreign banks have also set up representative offices in India.

especially retail banking. with minimal pressure from the government. takeovers. Indian banks are considered to have clean. the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. In terms of quality of assets and capital adequacy. mortgages and investment services are expected to be strong. and asset sales. which have not been included in the Second Schedule of the RBI Act. Non-Scheduled banks are those. One may also expect M&As. including measures related to lending against shares. Presently the RBI is responsible for supervision and regulation of urban cooperative societies.BANGALORE 21 . In March 2006.] Current situation Currently (2007). 1934. borrowings in the call market and term deposits placed with other urban co-operative banks. product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks.EFFECTIVE RECOVERY OF LOANS formal legislative changes. and the National Bank for Agriculture and Rural Development for State Co-operative Banks and District Central Cooperative Banks. 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. __________________________________ SAGAR BUSINESS ACADEMY. strong and transparent balance sheets relative to other banks in comparable economies in its region. banking in India is generally fairly mature in terms of supply. 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. The Reserve Bank of India is an autonomous body. 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.

the public sector banks hold over 75 percent of total assets of the banking industry. they may be publicly listed and traded on stock exchanges) and 31 foreign banks.2% and 6. Types of Banks in India CENTRAL BANK (1): RESERVE BANK OF INDIA NATIONALIZED BANKS(19) : ALLAHABAD BANK. They have a combined network of over 53. India has 88 scheduled commercial banks (SCBs) . with the private and foreign banks holding 18.5% respectively.000 ATMs. 29 private banks (these do not have government stake.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. 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. According to a report by ICRA Limited. a rating agency.EFFECTIVE RECOVERY OF LOANS Currently.BANGALORE 22 .000 branches and 17.

In a legal loan. which provides an incentive for the lender to engage in the loan. and is obligated to pay back or repay an equal amount of money to the lender at a later time. referred to as interest on the debt. each of these __________________________________ SAGAR BUSINESS ACADEMY.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. from the lender. or partial repayments. The loan is generally provided at a cost. Typically. Like all debt instruments.BANGALORE 23 . between the lender and the borrower. called the principal. In a loan. the borrower initially receives or borrows an amount of money. each installment is the same amount. in an annuity. the money is paid back in regular installments. a loan entails the redistribution of financial assets over time.

no collateral is involved).. security) for the loan...e.BANGALORE 24 . Commonly Mortgage loan is provided by the banks. Types of Loans offered by the Banks: Secured loan A secured loan is a loan in which the borrower pledges some asset (e. which can also place the borrower under additional restrictions known as loan covenants. 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. Unsecured Loans Unsecured loans are monetary loans that are not secured against the borrowers assets (i.EFFECTIVE RECOVERY OF LOANS obligations and restrictions is enforced by contract.e. a car or property) as collateral (i.g.

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

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

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

which has the external existence with infinitive.19 crores. which is why regardless of the size of your business or your aspiration. deposits were Rs 17016.97 crores and net profit for the year ended 31st March 2008 was Rs 241. for your maximum benefit Mission Statement: The mission statement of any organization generally represents its long term goals and strategies. Background of the Logo: The person who had such a dream. which describes __________________________________ SAGAR BUSINESS ACADEMY. we treat everyone as individual and special among other things. Every organization must have its own mission. The Bank has adopted a new brand color. which is also a manifestation of human soul. cheerfulness and forward looking nature. security and enduring success for all the beings. The sign also signifies with family concept of father. simple line came from Dr Karanth’s pen became the logo of Karnataka Bank. symbolizing their security which is reflected in the bank motto. As on March 31st 2008. its total business exceeds Rs 28000 crores.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 signifies brightness. a one stop shop for all you’re banking need and create the right solution with speed and efficiency.BANGALORE 28 . Bank logo is indicative of creation and potency. mother and their progeny. “your family bank across India”. not only in relation to our products and services but also in the way you interact with us. Values: We at Karnataka bank offer a total value package. Logo also represents growth with safety. advances were Rs 10841. At Karnataka bank they understand that customer are different in unique ways.74 crores. this means offering you choice. Sri Adiga with all his dream met Dr Shivaram Karanth. We understand the changes in your lifestyle recognize these changes and support you with a high standard of professionalism and services.

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

And also give accommodation facilities to 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. 100% medical allowance and promotion and wage revenue plan. Services: Karnataka Bank offers total value packing. utility bill payment is enabling to keep track of finances thereby saving time. And also provide good environment to do work to employees. easy and convenient loans. Allowances: The bank provides basically petrol. Facilities: The Bank provides canteen facility to all its employees and bank also provides internet facility its employees. life insurance. Work flow model of the Bank: Mobilization of funds Lending Recovery Mobilization of fund: __________________________________ SAGAR BUSINESS ACADEMY. The bank is committed to provide with customized services designed to suit individual requirements.BANGALORE 30 . nonstop shop for all banking needs. whether it high caring deposits.

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

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. The rating symbol “A1+” indicates highest degree of safety for timely payment of principal and interest. We are aiming at a total value package.1 private sector banks in India which is providing all the services of a modern bank to its customer. Two new deposit schemes – Platinum Lakpathi and Platinum Double and Vidyanidhi Education loan schemes have been introduced.EFFECTIVE RECOVERY OF LOANS programmed encompassing publicity. Nature of business carried out: Karnataka bank is the No. It accepts deposits from the customers. Our motto is to serve you with high standard of __________________________________ SAGAR BUSINESS ACADEMY. 150 crores raised by the bank during the year under report by way of unsecured redeemable nonconvertible subordinated bonds. 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. Quality policy: The quality policy of the Karnataka Bank is as follows “We believe in total quality at all levels.BANGALORE 32 . 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. provides loans and advances to the needy people. It also provides for the remittance of funds and some other facilities. securitization etc. a onestop shop for all your banking needs. recognizing organizations which have pledged their positive commitment to the planet and engaged eco-efficient green technologies to run their business.

8 regional offices. comprising of a deposit target of Rs 21000 crore and advance target of Rs. has accorded ‘A1+ rating’ to the bank’s Certificate of Deposit programme. of business units to 640. by increasing the total no. the bank ha plans to increase its total no. Area of operation: The area of operation is spread all over India.14000 crore for the year ending 31st March 2009.EFFECTIVE RECOVERY OF LOANS professionalism with a personal touch built on trust. As on 31-03-2008. it has 433 branches. Your Family Bank Across India”. 2 currency chests. External Certificate and Recognition: The credit rating agency. The rating symbol A1+ indicates highest degree of safety for timely payment of principal and interest. After all this is your Bank.7 extension counters. The bank is confident of achieving the same through customer services and operational efficiency.BANGALORE 33 . __________________________________ SAGAR BUSINESS ACADEMY. Besides banking operation involve into variety of services selling insurance. 1 Data center. It has its branches in 19states and 2 union territories. 1 international division. All the branches are computerized branches. Besides. Corporate Goals: The bank has envisaged achieving a total business turnover of Rs 35000 crore. ICRA Ltd. It has more than 150 ATM outlets. as they already have a large customer base for which they give similar or related service under a single umbrella. 4 service branches. one of the leading credit rating agency of the country. mutual fund products of other companies and they help in the payment of electric and telephone bills. of branches to 460 and own ATM network to 180 by March 2009.

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

for financing purchase of tractors/ power tillers and farm equipment. The bank has plans to launch students’ prepaid card and online trading facility for capital market products. The bank ties up with ‘Tata Mutual Fund’ for distribution of their mutual fund products.BANGALORE 35 . provide risk management services. E-hundi facility has been made available to a few reputed temples. for financing purchase of tractors/ power tillers/ vehicles and form equipments. CATEGORY METRO URBAN SEMI-URBAN RURAL TOTAL NO OF BRANCHES 120 134 89 88 433 __________________________________ SAGAR BUSINESS ACADEMY. the bank has signed a Memorandum of Understanding with ‘M/S Mahindra and Mahindra Limited’. facilitates online payment in merchant establishments. In the area of farm credit.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 also entered into a pact with ‘M/S Motors Limited’. 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. ‘White label agreement’ has been made with ‘Calyon Bank Limited’ France.

The period of this housing Loan is for 15 years. Under this scheme maximum of Rs. above 5 years and up to 10 years 8. The loan is granted for a period for 15 years.up to and inclusive of Rs.00 lakh 10% p. They should also have an operative account with bank the bank with regular operations for @least 1 year.50 lakh is given for the construction of house/purchase of flat/ site/ and construction of house there on. The security for loan is mortgage of property.BANGALORE 36 .50 lakh may be given as loan for fulfilling once dream of buying or constructing his own house or flat.10000 is eligible.50% p. b) Housing loan scheme for NRI’s: Under this scheme a loan is given to a non resident of India (NRI). Apart from this. were the loan is given up to the period of 15 years. is charged. above 10 years up to 15 years .75% p.a is charged.a and above Rs. For repairs/renovation/remodeling maximum period of loan is fixed at 7 years. 1. 15.15.a is charged.10 lakh is given.75% p. above 5 years and up to 10 years 8. rate of interest up to 5 years 8.10 lakh for repair. loan is also given to an extent of maximum Rs.EFFECTIVE RECOVERY OF LOANS Loan Scheme of the Karnataka Bank: The Karnataka Bank has following wide ranges of loan schemes. renovation of existing house or flats for a period of 7 years. Rate of interest up to 5 years 8.a is charged. KBL Apna Ghara) Housing Loan Scheme for resident individuals: Under this scheme maximum quantum of Rs.50% p.00 lakh 9% p. Nonresident Indian holding Indian passport and having permanent job or self employed with a minimum monthly income of Rs. In the case of renovation/remodeling/repairs of existing house/flat maximum of Rs.a.a is charged. above 10 years up __________________________________ SAGAR BUSINESS ACADEMY.

The quantum of loan ranges from Minimum of __________________________________ SAGAR BUSINESS ACADEMY. professionals and companies are eligible for finance under this scheme.10 lakh-10% p.00 lakh 9% p. Maximum period of loan for new vehicle is 60 months and 34 months in the case of second hand vehicle. 3. KBL Insta Cash: In this scheme loan will be given to the persons aged above 18 years for consumption purpose.BANGALORE 37 . above Rs.00 lakh 10% p. to an extent of 100% of invoice value of the vehicle by the Bank for a period of 5 years. companies etc. The unique advantage of this scheme is that it enables credit while keeping the borrowers investment intact. 3 lakh-12% p. Up to 3 years interest will be charged 10.50%. whereas a maximum of Rs. 15.a and above Rs.. 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. 2. Maximum amount of Rs. In case of new cars finance to an extent of 85% of invoice value of the car excluding vehicle tax and insurance.10 lakh-11% p.EFFECTIVE RECOVERY OF LOANS to 15 years .a. For second hand vehicles up to Rs.a. In this scheme finance will be given for the purchase of two wheelers to any individuals. 4. Rate of interest is charged up to and inclusive of Rs.up to and inclusive of Rs. more than 3 years 11%.15.a. Under this scheme finance will be given for the purchase of new as well as second hand cars by the Bank. KBL Easy Ride-(Two Wheeler Loan): Individuals. 100000/-borrower is given.a.5 lakh will be given for purchasing second hand cars not older than 3 years from the date of registration of the vehicle.

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

old (up to 5 years) auto rickshaw. bus.. and also for purchase of new Tractor. The rate of interest to be charged up to and inclusive of Rs. The main eligibility for the student is any major student representing himself or a minor student represented by parent or guardian. 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. Mainly the scheme was designed to provide financial support to the deserving and meritorious students for continuing their studies in India and abroad.a for loan limit up to Rs. maxi cabs. 10. 2 lakh up to Rs. __________________________________ SAGAR BUSINESS ACADEMY. distributers. KBL Varthak-Loan: Under this scheme finance for meeting the working capital needs of traders. Crane etc.10 lakhs and 12% p. jeep etc.BANGALORE 39 .2. of Indian nationality. The rate of interest charged under this scheme is @10% p. commission agents. 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. HUF.10 lakhs. lorry.5 lakh Studies abroad. KBL Vahana Mithra: In this scheme finance to individuals.a and above Rs. TATA sumo.00 lakh—11% p.7. The period of this loan is Maximum up to 84 months for Bus and Trucks.15 lakh The loan to be repaid in 5 to 7 years after commencement of repayment 9. 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.a. and a maximum of 60 months for all other vehicles..25 lakh for a period of 34 months for OPN. and body building charges up to 75% of the quantum finished by vehicle body builders. partnership firms or a company will be given for purchasing new cars.Maximum of Rs. 25 lakh –12% p. 12 months for OD will be provided by the Bank. permit etc. will be given subject to a maximum extent of Rs. is charged. JCB.a or limits above Rs. stockiest etc.EFFECTIVE RECOVERY OF LOANS 8.

Negotiated: The term loans are negotiated loans between borrowers and the lenders. particularly from industrial development bank of india through its refining scheme. state finance corporations. etc. they assist industries in raising long term funds. subscribing to and underwriting public issues of shares and debentures.. industrial credit and investment corporation of India limited. __________________________________ SAGAR BUSINESS ACADEMY. With the growth of industrialization. guaranteeing deferred payments. In addition to the indirect long term finance provided by the private bank Above.EFFECTIVE RECOVERY OF LOANS TERM LOAN APPRAISAL: Term loans are generally granted for acquisition of assets. 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. export import bank of India. a number of specialized credit institutions have been set up to assist the industries in raising long term fund. infrastructure development finance corporation. Term lending institutions like industrial finance corporation of India. Financial institutions referred to above mainly provide medium and long term finance to industries and the commercial bank normally finance short term requirements. Besides.BANGALORE 40 . assist industrial in raising long term funds by granting term loans. national small industries corporation limited. 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. etc. they also grant direct loans to industries. etc. industrial development bank of India. Short term credit facilities are granted to meet working capital needs by of cash and discounting of bills.

EFFECTIVE RECOVERY OF LOANS Security: All term loans are secured. __________________________________ SAGAR BUSINESS ACADEMY. besides undertaking a detailed study of applications.BANGALORE 41 . Any loose ends should be brought in the process note as risk factor (along with mitigating factors. While the assets financed by term loans serve as primary security. if any financial analysis should be thoroughly carried out). managerial and marketing viability had already been established. are to be examined. 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. all the other present and future assets of the company provide collateral / secondary security for the term loan. • • • • Technical appraisal Managerial appraisal Marketing appraisal Financial appraisal For term loan appraisal the above should be thoroughly scrutinized and adhered to. A detailed survey by technical experts in the relative industry may be necessary at times. In case of working capital appraisal for a running unit it should be ensured that the technical. the following broad aspects relating to the project. While evaluating proposals for term loans or deferred payment guarantees. Any proposal should be vetted on the following four parameters.

2. Location and site Building Plant and machinery Manpower requirements Breakeven point 1. Similarly consumable and spare requirements to be examined 4. Availability of raw materialIts sources. 3. __________________________________ SAGAR BUSINESS ACADEMY. the peak load and connected load requirement to be ascertained and verified (preferably through an electric engineer). PowerAvailability of adequate power through electricity board captive power plants to be ensured.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. corporation etc. LocationProximity to raw material source/market to be examined. landed cost to be examined in detail.BANGALORE 42 .) to use the same for industrial / envisaged proposal is available.e. terrorism. frequency of natural calamities) to be examined. Land detailsWhether adequate land is available and whether permission from competent authorities (municipality. any adverse factors (i.

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

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. ContingenciesThe provision for contingencies (a reasonable %) is normally loaded on cost of building. 13. 10. plant and machinery. Normally they are written off over a period of 10 years (maximum). normally 20% to 25% (maximum) margin from promoter is insisted.BANGALORE 44 . 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. 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. The financing of the cost of project may be through various sources. miscellaneous fixed assets to take care of unforeseen price variation. Average rate of return __________________________________ SAGAR BUSINESS ACADEMY. 12. 11. Based on above the total cost of the project is arrived at. The common sources are:Promoters contribution (either in the form of capital or unsecured loan) Internal accruals Term loan from bank / financial institutions. the reasonableness of the same to be ensured.EFFECTIVE RECOVERY OF LOANS This consists of expenses like share issue expenses. interest during construction period etc.

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. Managerial Appraisal The managerial appraisal consists of appraisal of the background of the promoters. 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.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. The discount rate employed for evaluating the present value of the expected future cash flows. If the rate of interest paid on borrowed for the project is higher than the project is not available. 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. A higher debt service coverage ratio call for shorter repayment period. The performance of group / associates and the conduct of the account with their bankers should also be examined. Internal rate of return The IRR of a project is the discount rate which makes its net present value equal to zero. Appraisal __________________________________ SAGAR BUSINESS ACADEMY. It should be ensure projected repayment period (minimum of 1.BANGALORE 45 . their qualification and experience and how for it is relevant to the proposed activity.50:1.25) and average debt service coverage ratio is at least 1. The higher the average rate of return the better is the project.

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

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

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. You can use your Debit card as a credit card with credit facility of maximum limit of Rs.BANGALORE 48 . No need to carry the cash or no need to pay the bill at the end of the month.for 45 days under K Power Scheme. your purchase will be debited to your account instantly.EFFECTIVE RECOVERY OF LOANS without the hassle of paying in cash. 25000/.

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

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

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



Participant can be anybody who complies with the eligibility requirements. 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. a Depository institution extends various services to the investors through its agents known as Depository Participant. All the various functions undertaken and enabled through Demat accounts is referred to as DP activity. An investor desirous of holding his securities in electronic form can open a demat account __________________________________ SAGAR BUSINESS ACADEMY. now there are two Depositories.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. However. They are CDSL and NSDL. Under the depository system. Participant (DP) can be a Bank also. 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). In India.BANGALORE 55 . is known as a Beneficial Owner (BO). in the books of the issuer company. 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. INTRODUCTION TO DEPOSITORY SERVICES: A Bank where its Head Office provides the facility of opening and conduct of Accounts through its branches. PREREQUISITES OF OPENING A DEMAT ACCOUNT: The formalities involved in opening a bank account and a demat account are similar.

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

After necessary verification. The DP is required to provide the BO. In order to facilitate a CDSL demat account holder to easily adapt to the fast reducing settlement cycle. In other words. 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. Further to effective risk control __________________________________ SAGAR BUSINESS ACADEMY. after necessary scrutiny. 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. investors require updated demat account information at a much faster pace than ever before. at regular intervals. DP forwards the physical securities (duly defaced) either to the company or to their duly appointed RTA (Registrar and Transfer Agent) who. which gives the details of transactions and closing balance. destroys the certificates in physical form and authorizes the depository to give corresponding (electronic) credit to the subject demat account. all in a state-of-the-art secure environment.BANGALORE 57 . 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. In the reduced settlement cycle era. 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. 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. the quest for account status information has risen manifold.EFFECTIVE RECOVERY OF LOANS DEMATERIALISATION OF SECURITIES: After getting the demat account number from the DP.

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

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. Trade anytime/anywhere Buy/Sell shares on a click from anywhere. ADVANTAGES 1. where __________________________________ SAGAR BUSINESS ACADEMY. 5. you have the power and convenience to trade without any geographical limits. anytime. 2. It is Swift. 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. In a dynamic market. Trade After or Before Market Hours too Get the Convenience of putting trades anytime. offering one solution for all markets with suitable trading platforms for Beginners and Active investors. you can place orders on phone while you are on the move.BANGALORE 59 . 3.EFFECTIVE RECOVERY OF LOANS KBL Online Trading offers the convenience of trading from any internet enabled location with highest levels of professionalism and security. 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. thus. Flexibility to transact through other channels too You get 24x7 access to your trading account online. Safe and convenient. You can place trades after the closing of regular market hours or before the start of market hours 4.

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

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

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

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

the Government of India controlled around 91% of the banking business of India. I have some details of laudable performances of the Bank. government banks. Capital funds of the Bank stood at Rs. the Indian banking industry became an important tool to facilitate the development of the Indian economy. namely. 2009 of the Bank speak volumes for its strong credentials. Indira Gandhi. In the early 1990s. Government of India issued an ordinance nationalizing the 14 largest commercial banks from the mid-night of 19th July. Karnataka Bank Limited occupies an enviable and pride position in the comity of Private Sector Banks in the country today. At the same time. A second dose of nationalization of six more commercial banks followed in 1980. the then Prime Minister of India. Karnataka Bank has secured "A1+" rating for its Certificates of Deposit program from ICRA. to monitor the growth and development of the Indian economy till 1960. The financial results of the year ended 31st March. kick-started the banking sector in India. it had emerged as a large employer.BANGALORE 64 . Net profit of the bank went up to Rs. thus indicating highest quality rating to short term instrument.1990.266.32143 crore.EFFECTIVE RECOVERY OF LOANS the year 1947. 2. This move. the nationalized banks grew at a pace of around 4%. Indian banking industry was not a critical tool. With the second dose of nationalization. which came to be known as New Generation tech-savvy banks.the then Narasimha Rao government embarked on a policy of liberalization and gave licenses to a small number of private banks. until the 1990s. 1950.70 crore. Under the political leadership of Smt. which has seen rapid growth with strong contribution from all the three sectors of banks. 1969. After this. if I may say so. along with the rapid growth in the economy of India. The total business of the Bank surpassed Rs. By the 1960s. and though Republican Indian Constitution was brought into force on 26th January.57 crore. __________________________________ SAGAR BUSINESS ACADEMY. by a swift and a sudden action. closer to the average growth rate of the Indian economy. It is stated that instruments rated in this category carry the lowest credit risk in the short term. private banks and foreign banks.

Bank's Net NPA and the return on assets stood at 0.EFFECTIVE RECOVERY OF LOANS The Capital Adequacy Ratio (CAR) of the Bank was 13. This astounding success should go to and be shared by its illustrious founders. 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.21. The Bank has a highly dedicated team of around 5300 employees ably patronized by over 74000 shareholders and over 4 million clientele base. I have __________________________________ SAGAR BUSINESS ACADEMY. I am neither an economist nor a banker. services of NRIs and its performance in user-friendly loan schemes are quite laudable and astounding. established in the year 1924. thanks to a host of illustrious and imaginative founderpromoters. varied and versatile dispensations marked by personalised and dedicated services. The success of the bank is built upon sacrifices and services of its founders and successive Boards of Directors and staff of the Bank. the most dedicated services rendered by the successive Boards of Directors and staff of the Bank. Karnataka Bank Limited.BANGALORE 65 . The earning per share (EPS) was Rs. My exposure in these fields is almost nil. As you know. Over 85 years of its fruitful existence has stood the test of time by its steady growth and vast. and above all.48 under Basel II and 13. 74000patron-shareholders and over 4 million patron-clientele.25% respectively. 4. Their selfless and single-minded devotion to give their best to the society resulted in the birth of the Bank. Karnataka Bank Limited. I mean. But. 3. I am only a client of the Bank.96. well above the RBI prescription of 9%. is a highly progressive bank with a vision and mission of a unique corporate personality. The Bank which has been consistently paying dividend over the years has paid a dividend of 60% for the year 2008-09.98% and 1. which occupies an enviable position in the comity of Private Sector Banks in the country today.54% under Basel I. The Bank's rural orientation programmes. and all of them richly deserve compliments from the society. 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.

Global Recession and Their Impact on Human Rights. I thought of speaking on the topic "Globalization. which consists of large number of experts on Indian economy." But. In other words. a feeling of a layman of this country.EFFECTIVE RECOVERY OF LOANS considerable exposure in law in general. In this context. Economic globalization as witnessed in the world today is not a new phenomenon. at the outset. at present. I proceed to the subject of my lecture. The trend. 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. Constitutional Law and Human Rights law in particular. Although __________________________________ SAGAR BUSINESS ACADEMY. The demise of the Cold War helped the emergence of a new aggressive competitive global economic order. who wants to share with an audience. 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. Globalization and recent global recession undeniably have their impact on Indian economy and consequently human rights of the people in this country. my Lecture by no standard can be said to be a well-researched article. without much ado. Globalization. Indian Banking. This was possible mainly due to the integration of the newly industrialized countries and much of the developing nations. but. Therefore.BANGALORE 66 . 5. Global recession. 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. developing a global financial system and a transnational production system which is based on a homogenized worldwide law of value. Having said it. globalization means global economic liberalization.

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

7. economic and cultural. In this era of globalization humanity is pursued as fundamentally one. GA arises from the control of the global information and communication networks by Western media corporations. Economic Globalization from Above entails countries of the South to accept . and Western cultural expressions as the global culture. Increasing competition and pressure on transnational companies to increase profits leads to a relentless search for cheap labour markets. and (2) close links are alleged between the ideologies of free markets and free societies. Many of the companies from the developed and the Newly __________________________________ SAGAR BUSINESS ACADEMY. with a common destiny.BANGALORE 68 . globalization can be seen in two different perspectives: Globalization from above. This translates as the adoption of a Western-style liberal democratic system of governance. particularly the United States ofAmerica.within the parameters of the dominant World capitalist system -the imposition of structural Adjustment programmes. 8. On a cultural level. neo-liberal economic policies. to allow unrestricted entry to transnational capital. They closely tie economic Globalization from Above to the political aspect in that (1) the source of pressure for change is the same.The transnational companies are the spearheads of globalization and have become the dominant economic and political force in the world economy. At the political level. including the wholesale liberalization of domestic economies. (GB). (GA) and Globalization from Below. that is the result of technology revolution in information and communication and the awareness of the unsustainability of the current way of life. an Asian scholar. GA manifests itself in its action of the Western countries.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 . for short. According to Nikhil Aziz.political. and the spread of modern technologies of a consumerist culture. and global financial institutions in pressuring countries of the South to democratize. for short.

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

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

describes "development as a comprehensive economic. cultural and political development. 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. and these include civil.EFFECTIVE RECOVERY OF LOANS impoverishment by increasing the poverty.BANGALORE 71 . A new model of development ideology is being promoted that is based on the market and its logic. Several decades of discussion on alternative development model is withering away and a dominant model of market oriented development taking roots in that place. 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. The 1990 UN Global Consultation on the Right to Development as a Human Right. A development strategy that disregards or interferes with human rights is the very negation of development. and enjoy continuous economic. contribute to. political. free and meaningful participation in development and in the fair distribution of resulting benefits". and cultural rights. The preamble of the Declaration of the Right to Development. 11. social. in which all human rights and fundamental freedoms can be fully realized. social. It was further maintained that the right to development is the right of individuals. economic. groups and peoples to participate in. adopted by the UN General Assembly in 1986. fragmentation of society and thus violates human rights and human dignity of millions of people. 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. social. insecurity. __________________________________ SAGAR BUSINESS ACADEMY.

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

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

(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. Despite these mitigating factors. as measured by the wholesale price index (WPI).EFFECTIVE RECOVERY OF LOANS 15. has declined sharply. The credit derivatives market is in an embryonic stage and there are restrictions on investments by residents in such products issued abroad. In India. 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. (IV) Headline inflation. 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. which is relatively modest.As already said by me. (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. The world faces its worst recession since the 1930s. 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. 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.5 per cent in recent period.BANGALORE 74 . 16. (II) India's growth process has been largely domestic demand driven and its reliance on foreign savings has remained around 1. Consumer price inflation too has begun to moderate.

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

In view of these findings. which is an international nongovernment human rights monitoring organization. __________________________________ SAGAR BUSINESS ACADEMY. and left hundreds of millions of people vulnerable to poverty with no safety net to catch them. 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.BANGALORE 76 . It has opined that structural policies based on market economics have widened the gap between the rich and the poor. 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. security issues. is being done to provide people with their basic needs. sustained economic recovery will not happen unless governments tackle human rights and bring an end to armed conflicts. According to Amnesty International. has opined. and too little.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. It has warned that the rising poverty in these countries could lead to instability and mass violence. In the report of the Amnesty International. in the 400 pages report published by it. According to it. 17.It is apt to notice what Amnesty International. It has claimed that increasingly authoritarian governments have ignored the problem at hand. 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. many factors were credited for the increasing levels of hunger and malnutrition. they claim.

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

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

the interests of marginalized segments of the society like Dalits. cost reduction and product differentiation. and host of other distinguished personalities who constitute the Board of Directors of Karnataka Bank Ltd. 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. Chairman and Sri P.BANGALORE 79 . tribals. 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. particularly. I have no doubt that under the able and pragmatic stewardship of Sri Ananthkrishna. women. commitment and devotion possessed by the managerial and ministerial staff of the bank. These are customer retention. as a whole. Banking industry. JayaramBhat. __________________________________ SAGAR BUSINESS ACADEMY. who are well-known economists and bankers at the national level. Managing Director and Chief Executive Officer. cost pressure and increased competition. with the kind of concern. I wish them all the best in their pursuits.EFFECTIVE RECOVERY OF LOANS It is stated that there are three concerns that affect the banks' performance critically and sometimes dramatically. children and other backward classes in the expected measure in the critical years ahead.


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

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. Especially the data collected by the primary sources may contain errors. Lot of errors may prevail in the data collection process. 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.BANGALORE 82 . The data can be gained and derived from two methods. which is responsible for the completion of any project. journals. Secondary data collection: Through internet. • • Detailed analysis was not possible because of non availability of the sufficient data. Limitations: • The time is the main constraint of this project. annual reports. • The data derived may not be accurate up to mark. magazines. income and expenditure statement.EFFECTIVE RECOVERY OF LOANS Methodology: Sources of data collection: The data is most vital and the integral aspect. The project report would be more specific and more informative if more time would be allotted. __________________________________ SAGAR BUSINESS ACADEMY.


81 respectively.82 and 3206.29 lakhs respectively.25 2540.380.82 83600. In NPA lakhs) (Rs.BANGALORE 84 . __________________________________ SAGAR BUSINESS ACADEMY. But in the year 2009 there was a slight increase in both balance outstanding and NPA which was 72675.29 3206.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.87 Lakhs and 2540.25 lakhs and Rs 2724.05 lakhs. 65.05 ANALYSIS & INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs. But in the year 2009 again balance outstanding and NPA increased to Rs 83600. In lakhs) 65380.87 72675.81 2724.

GRAPH 1: KBL Apna Ghar: [ Housing Loan for Scheme for resident individuals] __________________________________ SAGAR BUSINESS ACADEMY.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. issue of loan has been increased simultaneously their NPA amount has been decreased.BANGALORE 85 .

BANGALORE 86 .00 6. NPA In lakhs) (Rs.79 1407.EFFECTIVE RECOVERY OF LOANS TABLE 2: KBL Housing Finance for NRIs: [Housing loan scheme for NRI’s] YEAR Balance outstanding.62 2.82 0. (Rs.23 1286.16 2007-08 2008-09 2009-10 ANALYSIS & INTERPRETATION: __________________________________ SAGAR BUSINESS ACADEMY. In lakhs) 1402.

GRAPH 2: KBL Housing Finance for NRIs: [Housing loan scheme for NRI’s] By analyzing the above graph we can say that. But in the year 2009 there was a slight decrease in balance outstanding which was 1407. But in case of NPA it case decreased to 0.BANGALORE 87 .23.62 lakhs and Rs 6. 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.00.79 Lakhs and 2. 1402. In the year 2009 again balance outstanding and NPA increased up to Rs 1286.EFFECTIVE RECOVERY OF LOANS In the year 2008 balance outstanding and NPA were Rs.82 lakhs respectively.16 lakhs.

57 lakhs respectively. 575.09 Lakhs and 473. In lakhs) 17247.70 lakhs. In NPA lakhs) (Rs. So we can interpret that.93 respectively.70 ANALYSIS & INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs. But in the year 2009 there was an increase in both balance outstanding and NPA which was 21506.97 and 613. __________________________________ SAGAR BUSINESS ACADEMY.73 lakhs and NPA decreased to Rs.93 575. the recovery of loans & advances is little less in this type of loan.73 473.BANGALORE 88 .EFFECTIVE RECOVERY OF LOANS increased suddenly. 17247. TABLE 3: KBL Car Loan: [Car Finance Scheme] YEAR 2007-08 2008-09 2009-10 Balance outstanding. In the year 2010 there is an increase of balance outstanding by Rs 25845.57 613.09 21506. (Rs.97 25845.

GRAPH 3: KBL Car Loan: [Car Finance Scheme] ANALYSIS & INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.EFFECTIVE RECOVERY OF LOANS From the above analysis it is clear that. But in the year 2009 there was an increase in both balance outstanding and NPA which was 21506.BANGALORE 89 . So we can interpret that. the recovery of loans and advances is quite good in this type of loan.93 respectively. the bank has increased its lending.09 Lakhs and 473.57 lakhs respectively. In the year 2010 __________________________________ SAGAR BUSINESS ACADEMY. as the bank is quite good in recovering the issued loans. 17247.97 and 613.

16 respectively.25 76. 696. __________________________________ SAGAR BUSINESS ACADEMY.70 lakhs. (Rs.BANGALORE 90 . From the above analysis it is clear that.52lakhs. In the year 2010 there is an increase of balance outstanding by 782.52 ANALYSIS & INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.06lakhs and NPA decreased to Rs52. charted accountant. the recovery of loans and advances is quite good in this type of loan.52 711.06 NPA (Rs. In lakhs) 696. In lakhs) 97. as the bank is quite good in recovering the issued loans. But in the year 2009 there was a slight increase in both balance outstanding and NPA which was 711. 575.] YEAR 2007-08 2008-09 2009-10 Balance outstanding.EFFECTIVE RECOVERY OF LOANS there is an increase of balance outstanding by Rs 25845. etc. TABLE 4: KBL Udyog Mithra: [Professional loan for lawyers. the bank has increased its lending.92 and 76.73 lakhs and NPA decreased to Rs.25 lakhs respectively.80 782.16 52. So we can interpret that.52 Lakhs and 97.

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

(Rs. In lakhs) 2007-08 2008-09 2009-10 15240. agents etc.51 1148.BANGALORE 92 .65 18535. NPA In lakhs) (Rs.19 1240.] YEAR Balance outstanding.80 Lakhs and 1148. But in the year 2009 there was a slight increase in both __________________________________ SAGAR BUSINESS ACADEMY.25 ANALYSIS& INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.19 lakhs respectively.EFFECTIVE RECOVERY OF LOANS TABLE 5: KBL Varthak Loan: [working capital loans for traders.56 791.80 16664. 15240.

GRAPH 5: KBL Varthak Loan: [working capital loans for traders.EFFECTIVE RECOVERY OF LOANS balance outstanding and NPA which was 16664. as they are good in recovering the issued loans and advances. From the above graph it is clear that. So we can interpret that. the effective recovery of loans exists in this type of loan.65 and 1240.25lakhs.BANGALORE 93 . the bank has increased its lending. agents etc. In the year 2010 there is an increase of balance outstanding by Rs 18535.56 respectively.] __________________________________ SAGAR BUSINESS ACADEMY.51 lakhs and NPA decreased to Rs 791.

96 __________________________________ SAGAR BUSINESS ACADEMY. (Rs. In lakhs) 2007-08 2008-09 2883.EFFECTIVE RECOVERY OF LOANS TABLE 6: KBL Easy Ride: [ Two wheeler Loan] YEAR Balance outstanding.41 2596.69 173.BANGALORE 94 . NPA In lakhs) (Rs.76 179.

In the year 2010 there is an increase of balance outstanding by Rs 2851. But in the year 2009 there was a slight decrease in both balance outstanding and NPA which was 2596. From the above graph it is clear that.41 Lakhs and 179. So we can interpret that. .96 lakhs respectively. 2883.46 100.69 lakhs respectively. the effective recovery of loans exists in this type of loan. GRAPH 6: KBL Easy Ride: [ Two wheeler Loan] __________________________________ SAGAR BUSINESS ACADEMY.88 ANALYSIS& INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.76 and 173.EFFECTIVE RECOVERY OF LOANS 2009-10 2851.46 lakhs and NPA decreased to Rs 100. as they are good in recovering the issued loans and advances.88 lakhs.BANGALORE 95 . the bank has increased its lending.

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

So we can understand that.BANGALORE 97 .43 7356.54 159.09 137. But in the year 2009 there was a slight increase in both balance outstanding and NPA which was 7356.26 lakhs. 5549. In lakhs) 2007-08 2008-09 2009-10 5549.43 Lakhs and 53.13lakhs and 159.09 and 137. NPA In lakhs) (Rs.EFFECTIVE RECOVERY OF LOANS YEAR Balance outstanding. (Rs. In the year 2010 both balance outstanding and NPA increased to Rs 9268.09 9268. GRAPH 7: KBL Vidhyanidhi: [ Educational loan] __________________________________ SAGAR BUSINESS ACADEMY. In this type of loan the bank is still issuing loans even though their recovery is low.26 ANALYSIS & INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.54 respectively.09 lakhs respectively. the recovery of loan in this type is little less.13 53.

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

In lakhs) 2007-08 2008-09 2009-10 10098.93 7765.08 ANALYSIS & INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs. From the above table and graph we can understand that.BANGALORE 99 . the bank has reduced its lending. GRAPH 8: __________________________________ SAGAR BUSINESS ACADEMY.93 and 1506. So we can interpret that.86 Lakhs and 1503. 10098. the recovery of loans and advances is good in this type of loan. even though the recovery of loans is effective. NPA (Rs.33 1506.15 1503. In the year 2010 both balance outstanding and NPA have decreased to Rs 7765. But in the year 2009 there was a slight decrease in both balance outstanding and NPA which was 8831.15 lakhs and Rs 890.86 8831.33 lakhs respectively. In lakhs) (Rs.51 respectively.EFFECTIVE RECOVERY OF LOANS YEAR Balance outstanding.08 lakhs.51 890.

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 .

2976.BANGALORE 101 . But in the year 2009 there was a decrease in both balance outstanding and NPA which was 2004. In the year 2010 there is a drastic decrease in both balance outstanding and NPA of 701.62 lakhs and 95.EFFECTIVE RECOVERY OF LOANS YEAR Balance outstanding.55 lakhs respectively.55 59. NPA In lakhs) (Rs.26 95. The bank has reduced issuing this kind of loan as there is less demand for this type of loan.62 701.52 84.98 2004.26 lakhs respectively. In lakhs) 2007-08 2008-09 2009-10 2976.44 ANALYSIS& INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.52 and 59.44. (Rs. GRAPH 9: KBL Niveshan Loan: [Loan for the purchase of house sites] __________________________________ SAGAR BUSINESS ACADEMY.98 Lakhs and 84.

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

BANGALORE 103 .57 21. bars and coins etc] __________________________________ SAGAR BUSINESS ACADEMY.EFFECTIVE RECOVERY OF LOANS YEAR Balance outstanding.64 and 21.63 201.63 Lakhs and 17.10 17. NPA In lakhs) (Rs. GRAPH 10: KBL swarna Nidhi: [loan for purchasing gold ornaments. In lakhs) 205. But in the year 2009 there was a slight decrease in both balance outstanding and NPA which was 201. the bank has reduced issuing this type of loan and the NPA has also reduced.24 lakhs. From the above table it is clear that. (Rs.24 2007-08 2008-09 2009-10 ANALYSIS& INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.64 respectively. so we can clearly say that the recovery of this type of loan is effective.64 132. 205.57 lakhs and Rs 20.57 lakhs respectively. In the year 2010 there is a decrease in both balance outstanding and NPA of Rs 30.64 20.

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

But in the year 2009 there was a slight decrease in both balance outstanding and NPA which was 2170. In the year 2010 there is an increase of balance outstanding by Rs 3602. 3048.22 2170.75 28.22 Lakhs and 28. NPA (Rs.EFFECTIVE RECOVERY OF LOANS YEAR Balance outstanding.31 3602. In lakhs) (Rs. It is also clear that. From the above table it is clear that.13 ANALYSIS: In the year 2008 balance outstanding and NPA were Rs.53 46. In lakhs) 2007-08 2008-09 2009-10 3048.13 lakhs.BANGALORE 105 .82 15. 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. the amount of loan issued this year is more in comparison with the last year. the recovery of loans is effective.31 and 46.82 respectively.53 lakhs respectively.75 lakhs and NPA decreased to Rs 15.

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

10911. GRAPH 12: KBL Vahana Mitra: [ Loan for purchasing vehicles like cars.28 400. But in the year 2009 there was a slight increase in both balance outstanding and NPA which was 12183.99 and 619.01 respectively. bus etc] __________________________________ SAGAR BUSINESS ACADEMY.61 12183.87 ANALYSIS& INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs.32 619. In lakhs) 2007-08 2008-09 2009-10 10911. In NPA lakhs) (Rs.32 lakhs respectively.99 15127.87 lakhs. (Rs.28 lakhs and NPA decreased to Rs 614.BANGALORE 107 .EFFECTIVE RECOVERY OF LOANS YEAR Balance outstanding.61 Lakhs and 400. In the year 2010 there is an increase of balance outstanding by Rs 15127.01 614.

BANGALORE 108 .97 33.19 2007-08 2008-09 __________________________________ SAGAR BUSINESS ACADEMY.43 221. NPA In lakhs) (Rs.42 3399. In lakhs) 3031. (Rs.EFFECTIVE RECOVERY OF LOANS TABLE 13: KBL Krishik Sarathi: [ loans for buying tractors etc YEAR Balance Outstanding.

From the above table it is clear that. 221.42lakhs and Rs. But in the year 2009 both balance outstanding and NPA have been increased to Rs.EFFECTIVE RECOVERY OF LOANS 2009-10 4438. 3399.97 lakhs respectively. 3031. GRAPH 13: KBL Krishik Sarathi: [ loans for buying tractors etc] __________________________________ SAGAR BUSINESS ACADEMY.28 lakhs and NPA decreased to Rs 614.76 ANALYSIS& INTERPRETATION: In the year 2008 balance outstanding and NPA were Rs. 33.19lakhs respectively. the recovery of loans is effective as the NPA has reduced from last year to this year.43lakhs and Rs. In the year 2010 there is an increase of balance outstanding by Rs 15127.87 lakhs.BANGALORE 109 .93 203.


03.03.2009 to Rs. 171 crores as on 31.BANGALORE 111 . __________________________________ SAGAR BUSINESS ACADEMY. 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. 284 crores as on 31. From Lender’s point of view: 1. The bank has a good lot of finance and well written procedure for the purpose of lending of advances to the borrowers.2010.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.

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

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

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

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. • The bank should monitor and follow up the project in which they have lended their resources. This will help in reinforcing the project oneself to commit a wrong decision. • The project appraisal must be perfectly made before sanctioning the loan. • Bankers should be given the power to enforce the security without approaching the judiciary which would take a long time for settlement. This will motivate the borrower that bankers are taking care of them. Ultimately it will increase the performance of the bank. • The bankers should have to in continuous touch with the borrowers so that their attitude should not change towards the bank. • The communication between the bankers and the borrowers of all activities like transaction of business and other financial activities should always be well known. They should perform their duty and responsibility very well.BANGALORE 115 . • 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 enhance the efficiency of the offers and create clear and fair environment to work in the organization. This will save the time of settlement of cases. This will help the bankers to find the present financial conditions of the __________________________________ SAGAR BUSINESS ACADEMY. This will reduce the major risk of the banks.

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

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

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