A PROJECT REPORT ON “A Study on Retail Loans" UNDER THE GUIDANCE OF Prof. Sarika Jagtap SUBMITTED BY Vaishnavi Naresh Nanekar IN PARTIAL FULFILLMENT OF "BACHELOR OF BUSINESS ADMINISTRATION" BBA) SUBMITTED TO SAVITRIBAI PHULE UNIVERSITY OF PUNE THROUGH RAJMATA JIJAU SHIKSHAN PRASARAK MANDAL'S. ARTS, COMMERCE AND SCIENCE COLLEGE, LANDEWADI,BHOSARI,PUNE-39 ACADEMIC YEAR 2023-24RAJMATA JIJAU SHIKSHAN PRASARAK MANDAL'S. Art's, Commerce& Science College (Id.-PU/PN/ACS/161/2001) (Jr.Index No.-J.11.16.026) (Affiliated to University of Pune and approved by S.E.,H.E.,Govt. of Maharashtra) Opp. Amphenol Company, Near DattaMandir,Landewadi,Bhosari,Pune ~411039. Tel : 020-27124910 Fax: 020-27124338 e-mail: raimata_colleqe@yahoo.co.in Web:www.rispm.org Hon.Mr,VilasraoLande (M.L.A,) ‘Mr.Sudhir Mungase Wr-Ajitbhau Gavhane President Secretary Treasurer CERTIFICATE This is to certify that the project report titled A Study on Retail Loans is prepared by Nanekar Vaishnavi Naresh student of Bachelor of Business Administration and has successfully and satisfactory carried out project work. The project is submitted in partial fulfillment of BBA in the academic year 2023 -2024 as per rules of the Savitribai Phule Pune University. Project Guide Principal Place ~ Pune Date — Internal Examiner External ExaminerACKNOWLEDGEMENT | am extremely grateful to Rajmata Jijau Shikshan Prasarak Mandal's ACS College for having prescribed this subject work as a part of academic requirements in the Bachelors of Business Administration (S.Y.BBA) course, | wish to express a special thanks to our project guide "Prof. Sarika Jagtap", without whose guidance the project may not have taken shape. | would like to thank all those who have directly or indirectly helped us towards the execution of this project with full sincerity. Sincere thanks to all.DECLARATION I Nanekar Vaishnavi Naresh, of BBA-2 , hereby declare that the Project work titled "A Study on Retail Loans (With special reference to TSB Bank)" Which has been submitted to Savitribai Phule Pune University is an original work of the undersigned and has not been reproduced from any other source. I further declare that the material obtained from other sources has been duly acknowledged in the report. Date: Signature Place: Name:ABLE OF CONTENT Chapter No. | Title Page no. I Executive Summer 8 I Objective of the study 10 MI Organization Profile 2 3.1_| About bank 3.2_| Product & Services of bank 3.3_| Retail loan of TSB bank Vv Research methodolog; 35 4.1_| Observation 4.2_| Limitations 4.3_| Importance Vv. Data Analysis &Interpretation 38 VI Suggestions 44 Vil Conclusion 46 Vill References 48INTRODUCTIONINTRODUCTION ‘The main object of the project was to learn about the various retail Loans products that the bank had to offer to the customers. In order to know about the retail loan in detailed descriptions of the project For my task of learning the various products and their features I was guided by the executives at the bank a lot of observation went in and sufficient data from bank was used to understand the products, “Retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. Services offered include savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so” The retail banking encompasses deposit and assets linked products as well as other financial services offered to individual for personal consumption, Generally, the pure retail banking is, conceived to be the provision of mass banking products and services to private individuals as opposed to wholesale banking which focuses on corporate clients. Over the years, the concept of, retail banking has been expanded to include in many cases the services provided to small and medium sized businesses. Some banks in Europe even include their private banking business ie., services to high net worth net worth individuals in their retail Banking portfolio. ‘The concept of Retail banking is not new to banks. It is only now that it is being viewed as an attractive market segment, which offers opportunities for growth with profits. The diversified portfolio characteristic of retail banking gives better comfort and spreads the essence of retail banking lies in individual customers. Though the term Retail Banking and retail lending are often used synonymously, yet the latter is lust one side of Retail Banking. In retail banking, all the banking needs of individual customers are taken care of in an integrated manner.OBJECTIVE OF THE STUDYOBJECTIVES OF THE PROJECT To know the role of banks in retail loan. To know how the retail loan is sanctioned. To know about common criteria of borrower. Learnt about document required, monthly installment paid by customer. To know about repayment procedure Learnt how to cross sell the product in retail banking also what is the main purpose of retail banking today. Leant about basic of banking system and importance of retail banking. To know about the scheme of bank in retail loan.ORGANISATIONS PROFILEORGANIZATION PROFILE ‘Name THANE JANATA SAHAKARI BANK LTD (TJSB BANK) Type ‘Co-operative Bank (Multi-State Scheduled) Established on__| 1972 Headquarters Thane, Mumbai Total Branches | 136 Branches Services Banking, Financial Investment Website ‘www, tjsbbank.co.in Business Mix Rs.20059er+ Net Profit Rs.15Ser+ Deposit 13336er+ > History © The year 1972 marked the beginning of a visionary journey with the opening of ‘Thane Janata Sahakari Bank’s first Bank Branch in the city of Thane. «With this modest beginning in 1972 in the co-operative field, the dynamism infused by the Board of Directors, unflinching loyalties of the clientele and devotion of the staff have propelled the sound foundation of TISB Sahakari Bank Ltd (TISB) and has emerged as one of the leading multi-states scheduled co-operative Banks in the country. * During this momentous journey of 50 years, TISB presently caters to the needs of society through a close network of 136 Branches spread all over the states of Maharashtra, Goa, Karnataka, Gujarat, and Madhya Pradesh, © Keeping in mind the current requirements of customers, the Bank has also brought in Life / Non-Life Insurance distribution, Mutual Fund distribution, Depository services. Armed with an illustrious past, a glorious present and a promising future, TJSB is fast marching towards being the financial destination that provides trusted and quality solutions to all Individuals, Business Class and Corporate sector needs. > Profile + TISB Bank have also provided emerging & inclusive Digital Payment Platform like Debit Cards, RTGS & NEFT, IMPS ~ Mobile Banking, Internet Banking, UPI, BBPS Multiple tie-ups with insurance companies Like Max Life Insurance Co. Ltd, HDFC Insurance Co. Ltd, The New India Assurance Co. Ltd, LIC. © Focus on Recovery and NPA Management. From last two year (2021 & 2022) 0.00% is the net NPA of the bank. Permanent AD — I License to deal in Forex Exchange in India. Providing Facility of investment in Mutual Funds with expert advice TJSB bank is the first cooperative bank to go live with BBPS and UPI Total 5000+ employees are working with TISB bank. 12> AWARDS & ACHIEVEMENTS 2021 Runner-Up Prize for 'Best Technology Bank of the Year" At the 16th Annual IBA's Banking Technology Awards, we have been awarded with the Runner- Up Prize for 'Best Technology Bank of the Year’ amongst co-operative banks. 2019 Best Technology Bank of the Year At the 15th Annual IBA’s Banking Technology Conference, Expo 2019-2020 and Awards 2018- 2019, the Bank has been awarded the Best Technology Bank of the Year and Best Digital Financial Inclusion Initiatives, amongst Co- operative Banks 2018 COMMERZBANK STP Award 2018 2018 Arthasanket in the year 2018 Maharashtra’s most popular brand awarded by Arthasanket in the year 2018 2017 Best Information Technology Bank Award — 2017 MUCBF Awarded the Bank with the “Best Information Technology Bank Award — 2017” > BOARDS OF DIRACTORS Name Designation Shri. Sharad Narhar Gangal Chairman B. Com, LLB & MLS Shri, Vaibhav Vijaykumar Singavi Vice Chairman B. Com, M. Com, FCA, DISA (ICAD, M. Phil (Banking) Shri, Vivekanand Manohar Patki Director M.Com, LLB, AICWA, FCA ‘Smt. Anuradha Ramchandra Apte Director BSc., LLB Dr. Smt. Ashwini Varadraj Bapat DirectorDHMS(Mumbai), MSc in Child Psychology, Sangeet Visharad, Naturopath Shri, Sameer Sharad Kamble Director B.Com., LLB Shri, Ramesh Khushaldas Kanani Director Diploma In Mechanical Engineering Shri, Madhukar Dharma Khutade Director Shri. C. Nandagopal Menon Director BA, BGL Shri. Dileep Yeshwant Sule Director Government Commercial Diploma (GCD) Shri, Pradeep Dattatray Thakur Director B.Com, LLB Shri. Shailendra Ashok Khandekar Co-Opted Director Engineer, MBA Shri. Sunil Prabhakar Sathe MD & CEO B. Com, CAIIB, ACMA, CS > PRODUCTS &SERVICES OF TJSB BANK Following are the services given by the bank. + Accounts + BBPS + Loans + Insurance + Deposits + Forex * Debit card + ATM’s * Lockers + Other Services 01) Accounts: ‘TISB Bank offers various types of accounts to the customer as per there requirement, like its unique saving accounts and withdrawal facility. They also provide NR accounts as per your requirement, KEY SERVICE + TISB saving account + TISB saving elite account + TISB saving silver account + TISB saving gold account + SB NexGen + Student saving account + Salary saving account + NRE account + NRO account + FCNR account 02) Loans: A loan is the act of giving money to another party in exchange for repayment of the loan principal amount plus interest. The lender usually a bank or financial intuition advances sum 14money to borrower. The lender also adds interest or finance charges to the principal value which the borrower must repay in addition to the principal value Lenders will consider a prospective borrower's income, credit score, and debt levels before deciding to offer them Joan, A loan may be secured by collateral such as a mortgage or it may be unsecured such as accredit card. Revolving loans or lines can be spent, repaid, and spent again, while term loans are fixed rate, fixed payment loans. Lenders may charge higher interest rate to risky borrowers. ‘There are two types of loans offered by TISB bank. + Commercial Loan * Retail Loan 1) Commercial Loan: A commercial loan is a financial instrument that businesses owners can avail of to address any short-term capital needs. The sanctioned amount can be used to increase the working capital, acquire new machinery, build new infrastructure, meet ‘operational costs, and other such expenditures, KEY PRODUCTS © Cash Credit Limit/Overdraft Limit * Bills Discounting * CC Pledge Facility against Warehouse Receipts (WHR). * LC Bill Discounting * Pre-Shipment Finance + Post-Shipment Finance * Term Loan Liquid Rent Discounting loan Easy Credit, 2) Retail Loan: Retail lenders offer credit to individuals or retail customers. Examples of retail Id’s education, and mortgage bankers. Lenders might offer retail and -ss customers several products but focus on retail. Personal loans, credit cards, and mortgages are examples of popular retail lending products. KEY PRODUCTS + Personal loan + Housing mortgage loan ising loan ance loan + TISB green car loan + Education loan + Consumer finance + Professional loan + Travel loan + Women Entrepreneur loan * Gold loan + NRI Property loan + Flexi housing + Salary Overdraft Facility + Housing top-up Loans and Advances: - 151) Loans to business and trade: - ‘Commercial banks grant loans on short-term basis. Business bans are overdrafts ish credits, (ii) direct loans, and (iv) bills discounted i) Overdraft is an arrangement by which the borrower is allowed to withdraw from his, account more than what is deposited in his account. It is granted against collateral security. Interest is charged on the amount overdrawn, ii) Cash Credit is granted against the security of goods or personal security of one or more persons other than the principal borrower. Interest is charged only on the amount made use of by the customer under this management. ided into (i) 03) Deposits: TSB Bank offers various types of deposits plans that you can choose from depending on the term period, nature of deposit and its unique saving. * Fixed Deposits: A fixed deposit, also known as term deposit, is one where a customer keeps a specified amount with the bank for a fixed period. Fixed deposit holder gets interest on the deposit for that period. However, if he withdraws before the expiry of the stipulated period, he loses all or a major part of the interest earned on that deposit. Generally, the rate of interest on fixed deposits is the highest compared to that on other three forms of deposits. *Saving Bank Deposits: - Savings bank deposits can be opened with a very small amount. Though money in the savings account can be withdrawn at will, there are, however, certain limitations on the total number of withdrawals per week. The rate of interest on this deposit is normally higher than that of current deposit but less than fixed deposit. By mobilizing small amounts from large number of individuals through savings, bank deposits, banks are generally able to gather huge amount of funds. * Current Account Deposits: - Itis also known as demand deposit. The bank opens this account on an initial deposit of Rs. 100 but only after satisfying itself about the credit worthiness of the customer. There are no limitations on the amount of deposit and number of withdrawals. Normally no interest is paid ‘on current deposit *Recurring Deposits: - In recurring deposit, the customer opens an account and deposit a certain sum of money every month. After a certain period, say for I year, 3 year or 5 years. The accumulated amount along with interest is paid to the customer. It is very help full to middle and poor section of the people in society. The interest paid on such deposit is generally on cumulative basis. This deposit system is useful mechanism for regular savers of the money. Rate of interest is applicable as per fixed deposits rates. (04) Debit Card: Card holder may withdraw minimum of Rs, 100/-, maximum or Rs. 35,000/- (and in multiples of Rs. 100/-) per day subject to daily limit and availability of balance in the account. Debit cards are issued by your bank and work as a combination ATM card and credit card, However, unlike a credit card, a debit card links directly to your bank account, using the money you have on deposit to pay for your purchase or make your ATM withdrawal digitally. 1605) Bharat Bill Payment Services (BBPS) Bharat Bill Payment Services (BBPS) is used for making payment of various utility bills ike mobile, electricity, gas, landline telephone etc. TISB customers can enjoy the benefit through TISB SMART MONEY app. Bharat Bill Payment System (BBPS) is an integrated bill payment system which offers bill payment service to customers online as well as through a network of agents on the ground. The system will provide multiple payment modes and instant confirmation of receipt of payment. Through the vast network of agents or BBPS outlets which could include bank branches, business correspondents, Customer Service Points, retail agents of aggregators, ATMs (Automated Teller Machine), Kiosks, etc. customers will be able to pay bills of the billers, at any time (24 X 7), enrolled in the BBPS system at any BBPS outlet 06) Other Services: Apart from saving account, loan, deposit TISB bank also provides other services lik . + NEFT . + Pradhan mantra yojana . * Demat © Insurance * CLCS Scheme *_GST > RETAIL BANKING OF TJSB BA “It refers to banking in which banking Institutions execute transactions directly with consumers. Service offered includes Savings & transactional ACs, mortgages, personal loan, debits cards, credit cards.” In retail banking all the needs of individual customers are taken care of in a well-integrated ‘manner. Retail banking refers to provision of banking services to individual & small number of Jow values of truncation. This is a construct to wholesale banking where the customer is lagers, often multinational companies, government & government enterprises. Now a day a large number of people are taking loan from different banks. It helps people to fulfill their need and it is really easy to repayment the loan amount with a longer repayment period ‘There are number of retail loans offered by the TJSB banks. They are: TJSB- HOUSING LOAN TJSB- PRIORITY HOUSING LOAN TJSB- HOUSING LOANS TO NRI TISB- FLEXI HOUSING LOAN TISB- HOUSING TOP UP LOAN TJSB- HOUSE MORTGAGE LOAN TISB- AUTO FINANCE LOAN 7TISB- GREEN CAR LOAN TISB- AUTO FINANCE TO NRI TISB- TWO-WHEELER LOAN TISB-EDUCATION LOAN ‘TISB-EDUCATION LOAN-EWS TISB-PROFESSIONAL LOAN TISB-PERSONAL LOAN ‘TJSB-CONSUMER FINANCE LOAN TISB- SALARY OVERDRAFT SCHEME, TISB-GOLD LOAN TISB- LOAN AGAINST LIP/NSC/KVP TJSB-TRAVEL LOAN TJSB-LIQUIDITY SUPPORT TISB-SUPPORT TISB- WOMEN ENTREPRENEUR LOAN TJSB- SAUR SHAKTI LOAN > BASIC COMMON CRITERIA OF TJSB BANK FOR RETAIL LOANS OF BORROWERS PARTICULARS [FOR RESIDENT INDIANS CCUPATION SSataried/Seif Employed/Businessman/Professionals |AGE IFor Salaried: Minimum 21 Years. Loan repayment tenure till retirement age. [For Sel-employed/Businessman: Minimum 18 Years & Maximum Up to 65 ears while expiry of loan. Students: Minimum 16 years. RESIDENCE (Owned by applicant /Co-Applicant or any of the close relatives for all retail roducts. In case of Occupancy on Rental basis retail loan except Housing loan to be iscouraged. ISIT REPORT Visit to be done for residential & business address as applicable & visit report (0 be obtained on record. ALUATION Valuation to be done in case age of the property to be mortgage is above 15 ears. [AXIMUM faximum age of the property to be mortgage should not be more than 40 |AGE OF ears. Properties above 40 years to be discouraged. On merit of the case, it PROPERTY an be considered subject to obtaining “Structural Stability Report” mentioning residual life of property from architect. 18INSURANCE __ [insurance of underlying asset with bank clause till existence of the loan ‘mount preferable through TISB. [Term Insurance of applicant and co-applicant to the equivalent of loan amount anctioned preferable through TJSB to be explored. SIC REPORTS 22 CIC's report to be taken on record as per HO circular issued from time to ime. (Credit report of CIBIL is mandatory & Trans Union Score to be considered in CIBIL report) ;Points to be noted for loan cases where the borrower's CIBIL score is below /As far as possible sanctioning authority shall refrain for considering any loan vith CIBIL below 600. |However, such case may be considered where in existing deposit/borrower relationship with satisfactory track record is evident. justification of the said case has to be incorporated in process note. Such cases will attract additional rate of interest as mentioned in rate chart. [LOGIN / OTHER Login Charges of Rs.2000/- to be collected at the time of loan application for HARGES Housing Loan, House Mortgage Loan, Top Up Loan, and Education Loan & [Professional Loan. aid login charges to be adjusted against processing fees at the time of Misbursement of loan. Said login charges are Non-Refundable in case loan roposal gets rejected. an application fees of Rs.100/- stands discontinued. EMI Bounce charges of Rs.500/- plus GST will be charged on every EMI lefault. > PROCESS FOR RETAIL LOAN FILE 1. Loan Application: It is a form given by the bank to fill details about costumer. 2. Document of Applicant / Co-Applicant/Guarantors: (KYC/CIBIL/INVESTIGATION REPORT/VISIT REPOT) * Meaning of KYC KYC is Known Your Customers For KYC applicant must submit his/her document as per RBI rules: 1. Passport Size Photographs 2. Copy of Pan Card 3. Copy of Aadhar Card/Passpor/Driving License/Voter 1d/ID card issued by Govt. Establishments 4. Copy of latest electricity bill or latest telephone bill 195. Proof of Business/Profession -Copy of Shop Act license / GST Certificate /FSSAL JAny other valid applicable license issued be Govt. authorities (Applicable in case of applicant is businessman) 6. Copy of rent agreement (If residing on rent) OR latest maintenance receipt or property tax paid receipts if residence is on ownership basis + CIBIL CIBIL Credit Information Bureau (India) Limited score is a consumer's credit score. CIBIL shows the score which type or what type of loan he/she has taken. It also tells detail of persons having loans with another bank. Investigation report: Itis a document that details the findings of an investigation, + Visit Report: This report helps your document to procedures and processes at an industrial or corporate location. These reports are fairly straightforward. In the visit report photos, address proof, of the property & person is taken in detail and mention in this report. 3. Valuation Report / Insurance Policy: (This is needed in case of SS-M/ PSS-M only) 1. Valuation report: This report is an inspection and report of a property that will determine its value, commonly referred. Valuation is performed for assets or liabilities due to number of reasons. 2. Insurance policy Tt isa legal agreement between two parties the insurer and the insured. It is a way to manage your tisk. 4, Financials of Applicant / Co-Applicant / Guarantor (ITR/SALARY SLIP/FORM NO.16 of the BORROWER) 1. Last 3 years ITR or Form 16 as applicable (ITR means complete set along with computation of income, profit & loss accounts, balance sheet with schedules) 2. Last 3 months salary slips /certificates 3. Sanction letters and statement of account since beginning of all existing loans financial institutions like banks, NBFC, etc. 4. Copy of appointment letter, confirmation letter, increment letter (if required) 5. Any type of income proof. other 5. BANK STATEMEN’ 1. Bank account statements for last 3 year (Savings ale, Salary a/c, Current a/e, Cash Credit or Overdraft account as applicable) 6, SANCTION LETTER/ LOAN STATEMENT OF EXISTING FACILITY WITH. OTHER BANK: If person have taken loan with another bank 7. COPY OF AGREEMENT. (IN CASE OF SS-M/PSS-M) 208, QUOTATION/ADVANCE PAYMENT RECEIPT (IF ANY) Quotation is the total amount required for the purchase e.g., automobile, property. If he/she had paid any xyz amount against any purchase, then that is the advance payment that payment proof (receipt) has to be submitted to the bank. 9, GUARANTOR Guarantor has to give same documents as the borrower only of latest F.A. year. 10. COLLATERAL SECURITY: Copy of LIC policies/FD/RD > NEGATIVE LIST OF BORROWERS & GUARANTORS: To ensure proper identification, Branches are advised to discourage the proposals in respect of Borrower's /Guarantor's having following Profession/Occupation, 1) Class 4 employees 2) Daily wage labors /Mathadi Workers 3) Drivers of Tourist Vehicles, Taxi/Auto Rickshaw/Commercial vehicles 4) Employees of BIFR Companies 5) Watchmen 6) Employees in Security Services Agencies/Companies 7) VRS Optee/Pensioners 8) Real Estate Agents 9) Willful defaulters/ existing NPA borrowers. >» SOME IMPORTANT FINDINGS IN THE LOAN PROCESS: 1. Proposal is appraised based on gross net salary of the consumer depending on the various loan schemes which consumer wants to avail. 2. Credit analysis is performed using CIBIL, which specifies the credit score through which loan can be granted to the applicant. Credit score ranges from 300 to 900, anything above 750 credit score is considered good for granting loan. 3. Guarantor profile is processed in system; his credit score is also checked using CIBIL software whether guarantor score is good, or any issues are there 4, After getting good CIBIL score site visit and surveillance is done to get some facts about the applicants relating to his tenure of the stay, working history and any other factors. 5. Loan application is prepared on basis of credit worthiness of applicant after having background check of the applicant and same applicant need to be notarized or franked on legal papers acting as proof of application. >» CIBIL SCORE CALCULATION: (SOME PARAMETERS CONSIDERED) 2Track record of the Past I. Track record of past payments Payments 2. Consistently making payments to obtain high score 3. Delayed payments leading to low score Previous settlement or write- | 1. Delayed and Default payment affecting the eredit score of offs or Defaults the Individual 2. Multiple Write off leading to low credit score 3. Write offs documented on previous debt low scores Loan as proportion of the T. Low loan balance is Indicator of healthy eredit usage. Income 2. High loan balances Reduces score Secured loan Vis Unsecured _ | 1. High credit card balance Results in low Score rating Loan and Credit Cards 2. Reliance on unsecured loans ice, credit card is considered negatively Loan Enquires 1. Many loans enquires in multiple banks indicates credit hungriness of the applicant resulting to obtain low credit score TT \GS POSITIVELY AFFECTING THE CREDIT SCORE 1. On Time EMI payments of the loan taken. 2. Regular payment of unsecured loans (credit Card Bills). 3. Avoiding Over-leveraging 4. Maintaining strong financial records. 5. Proper utilization of earlier Credit facility granted. THINGS NEGATIVELY AFFECTING THE CREDIT SCORE: 1. Too many credits Enquires through different banks, 2. Cheque bounce or dishonor. 3. Default in payment of Installments. 4, Defaulting as Guarantor 5. High Utilization of the approved Credit or Overshooting the Limit > DIFFERENT CREDIT SCORE SLABS: FROM 750 to 900 _| Excellent Score Bank can sanction the loan. FROM 700 to 750 _| Particularly good score bank can still sanction the loan. FROM 6000 700 | Fair score bank may approve part of sanctioned loan E.g., Loan needed 1 lakh but approved will be 75- 80 Thousand FROM 300 to 600 | Poor score bank will think twice before Sanctioning loan a possible ‘outcome will be rejection of the Loan, 2Retail Loan of TJSB Bank 01. TJSB- HOUSING LOAN Purpose For Purchase of Dwelling Unit ic., Flat, Row House, Bungalow under Construction or Ready possession, first sale or resale. Eligibility ‘Applicant Employees of reputed and financially sound organization Minimum Gross salary of INR.15,000/-per month and Confirmed service for at least one year. For Businessmen &Professionals: - Business should have establishment of minimum of three years. Preferably, factory SB/CD Account with us. Conduct of the actory. In case the applicant is not our customer and maintaining Account/having facilities with other banks, his conduct of account if found satisfactory after verification of his/her Statement then they said client will also be eligible for availing the facility under the scheme. Possibility to be explored from all individuals/ businessmery professionals’ applicants for exclusive banking with TISB Bank. Co-Applicant: Co-Owners of dwelling unit must be taken as Co-applicant. Spouse/parents of the applicant other than Co-owners can be taken as Co- applicant. Type of Facility Term Loan Margin 20% Repayment Period Maximum 240 months inclusiveofmoratoriumperiodofmaximum| 8monthsor till the retirement age if salaried whichever is earlier. In case of Take over loan Maximum repayment tenure til residual tenure of earlier sanction or actual whichever is less. Rate of Interest (w.e.f. 01.11.2022) Loan up to Rs.35.00 lakh CIBIL Range ‘New Card Rate Floating linked to PLR 750 &above 8.05% (PLR-9.10%) 700 to 749 8.20% (PLR-8.95%) 650 t0 6997-1 __| 8.45% (PLR-8.70%) 600 to 649. 8.95% (PLR-8.20%) Below 600 9.95% (PLR-7.20%)Lona abore CIBIL Range _ | New Card Rate Floating linked to PLR motel 730 &above 8.15% (PLR-9.00%) 700 to 749) 8.30% (PLR-8.85%) Rs.70.00lakh | 659 19 6997-1 | 8.60% (PLR-8.55%) 600 t0 649) 9.10% (PLR-8.05%) Below 600, 10.10% (PLR-7.05%) Processing | @ 0.80% of loan amount + GST Charges Prepayment | NIL Penalty Legal Rs.5000/- + GST Charges Other Franking Charges, CERSAT, Notice of Intimation, Filing Mortgage, Insurance of Charges __| property etc. (Valuation, Sanction Confirmation if Applicable) Collateral | Liquid Securities in the form of LIP/ TD/Govt. Securities/Shares/Bonds etc. Security __| acceptable to Bank to be explored. Guarantors | Guarantor need not be insisted upon, However, itis at the discretion of the’ sanctioning authority to stipulate the condition of guarantor on case-to-case basis, Membership | Borrower: Regular Membership fees @2,5% of loan amount or Rs.10000/- whichever is less (Minimum Rs.2000/-) Co-Borrower: 40 Shares each ice., Rs.2000/- each, Guarantors: Nominal membership. Mode of | The interest, EMI and other charges, if any, shall be paid by the borrower by Repayment _| depositing cash/cheque or by transfer of funds from other accounts, 02. TJSB- AUTO FINANCE LOAN Purpose | To purchase new four-wheeler for personal use. To purchase secondhand four-wheeler (up to 3 years old only) for personal use, Eligibility | Applicant: Individuals/Proprietary Concern/Parinership firms/Pvt, [Ltd ‘Companies. For salaried persons: - Employees of reputed and financially sound organization. Minimum gross salary of inr.15, 000/-per month and confirmed service for at least one year. For businessmen & professionals: Business should have establishment of minimum of three years. Preferably, applicant maintaining satisfactory SB/CD account with us. Conduct of the account should be satisfactory. In case the applicant is not our customer and maintaining account/having ies with other banks, his conduct of account if found satisfactory after jon of his/her statement then they said client will also be eligible for‘availing the facility under the scheme. Possibility to be explored from all individuals/businessmen/professionals’ applicants for exclusive banking with TISB bank. Co-applicant: not allowed. Type of Term Loan Facility Loan Limit _| Maximum Up to Rs.150.00 Lakhs or Ex-Showroom Cost + Registration- Insurance ~ Discount - Exchange amount whichever is less. Rate of Interest (w.e.f. 01.11.2022) ‘Auto finance (New car) CIBIL Range | New Card Rate Floating linked to PLR, 750 &above 8.35% (PLR-8.80%) 700 to 749. 8.50% (PLR-8.65%) 650 to 6997-1 | 8.80% (PLR-8.35%) 600 to 649. 9.30% (PLR-7.85%) Below 600 10.30% (PLR-6.85%) ‘Auto finance (Old car & CIBIL Range New Card Rate Floating linked to PLR_ Maximum | [750 &above 11.40% (PLR-5.75%) Tenure 36 | [70010 749 11.55% (PLR-5.60%) EMD 65010 6997-1 | 11.90% (PLR-5.25%) 600 to 649. 12.40% (PLR-4.75%) Below 600 13.40% (PLR-3.75%) Prime New/ Old Vehicle to be purchased. Security Collateral Liquid Securities in the form of LIP/ TD/ Govt. Securities/Shares/Bonds etc. Security acceptable to Bank to be explored. Guarantors | Minimum one acceptable guarantor of good net worth to be explored. Collateral security holders to be taken as guarantor. Margin For New Vehicle: NIL on Ex-showroom + Registration + Insurance. Number of Accessories, Extended Warranty Depot charges, GST, et. to be borne by borrower. For Old Vehicle: Up to 2 years old Vehicle: 20%. 2 to 3 years old Vehicle: 30% of the vehicle purchase agreement or Valuation of the Vehicle whichever is less. Prepayment | NIL Penalty Processing | @ 0.50% of loan amount OR Minimum Rs.2000/- + GST whichever is higher Charges to be charged Legal NIL Charges Other Franking Charges, (Valuation charges if applicable) Charges 25Borrower: Regular Membership fees @2.5% of loan amount or Rs.10000/- whichever is less (Minimum Rs.2000/-) Guarantor: Nominal membership. Mode of | The interest, EMI, and other charges, if any, shall be paid by the borrower by Repayment _| depositing cash/cheque or by transfer of funds from His/other accounts. 03. TJSB- TWO-WHEELER LOAN Purpose ‘@) To purchase new Two-Wheeler b) Electric Two-Wheeler (Only where RTO registration is applicable) (Bank will NOT finance those Electric Two Wheelers where RTO registration not applicable) Eligibility | a) Salaried persons: Employees of reputed organizations with minimum one Year of confirmed service b) Businessmen/Self-employed/Professionals For Salaried Pei Employees of reputed and financially sound organization. Minimum Gross salary of INR.20,000/- per month and Confirmed service for at least one year. For Businessmen &Professionals: Business should have establishment of minimum of three years. Preferably, Applicant maintaining satisfactory SB/CD Account with us. Conduct of the account should be satisfactory. se the applicant is not our customer and maintaining Account/having ies with other banks, his conduct of account if found satisfactory after ation of his/her Statement then they said client will also be eligible for availing the facility under the scheme. Possibility to be explored from all, ‘duals / businessmen/ professionals’ applicants for exclusive banking with Not Allowed. Type of ‘Term Loan Facility Loan Limit | Maximum Up to Rs.5.00 lakh or (Ex-Showroom Cost + Registration) - Discount / Exchange amount whichever is les Repayment _| Maximum 60 months OR till the retirement age if salaried whichever is Earlier. Period Rate of Regular two-wheeler =11.50% (PLR-5.65%) Interest Electric two-wheeler =1 1.25% (PLR-5.90%) (wet 01.11.2022) Prime Hypothecation of Two-Wheeler Security 26Collateral Liquid Securities in the form of LIP/TD/Govt. Securities/Shares/Bonds etc. Security __| acceptable to Bank to be explored. Guarantors | Minimum one acceptable guaranty or of good net worth. Collateral security holders to be taken as guarantor. Margin NIL on Ex-showroom + Registration. (Amount of Insurance, Extended Warranty, Depot charges, octroi- LBT, etc. to be borne by borrower.) Prepayment | NIL Penalty Processing | @0.25%of loan amount +GST Charges Legal NIL Charges Other Franking Charges. Charges Membership | Borrower: Regular Membership fees @2.5%ofloanamountorRs.10000/- whicheveris less (MinimumRs.2000/-) Guarantor: Nominal membership. Mode of | The interest, EMI, and other charges, if any, shall be paid by the borrower by Repayment | NACH/ECS in case of salaried borrower's or depositing Cash cheque or by transfer of funds from his/other accounts. 2704. TJSB- EDUCATION LOAN Purpose For Providing Financial support to deserving/meritorious student for pursuing higher Education in India and Abroad and to meet expenditure of admission fees, accommodation, purchase of educational equipment’s, traveling expenses, lab apparatus, books, computer & peripherals etc. Eligibility | Applicant/Co-Applica IfStudentAgeisabove 8Y ears: Particular Option 1 Option 2 Applicant ‘Student Parent Co-Applicant | Parent Student Income to be | Students Future Income + | Parents Income considered Parents Income Parent's income Parents Income Should is __| should be sufficient Sufficient at least to serve | to take care of loan interest during moratorium | repayment. period of loan, IfStudentAgeisbelow18Years: [ Applicant Parent ‘Co-Applicant Student Income to be considered rents income Parent's income should be sufici take care of loan repayment. Courses Courses Eligible: Eligibility | (A) Studies in India: Graduation courses: BA, B.Com. B.Sc., ete. Post-Graduation Courses: master’s degree & Ph.D. Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc. ‘Computer certificate Courses of reputed institutes accredited by Dept. of Electronics or Institutes affiliated to university. Course like ICWA, CA, CFA ete. Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc. Courses offered in India by reputed foreign universities. Evening courses of approved institutes. Other courses leading to Diploma/Degree etc., conducted by colleges/universities approved by UGC/Govt./AICTE/AIBMS/ICMR ete. Courses offered by National Institutes and other reputed private institutions. Regular degree/diploma/Certificate courses like Aeronautical, Pilot training, Commercial Pilot training, shipping etc. approved by Director General of Civil aviation/Shipping, Teacher training course/Nursing Course/B.Ed. are eligible for educational loans provided the training institutions are approved either by Central Government or by the State Government and such courses should lead 10 degree or diploma course and not to certification course. B Abroad: 28Graduation: For job oriented professional/technical courses offered by reputed universities. Post-Graduation: MCA, MBA, MS ete. Courses conducted by CIMA-London, CPA in USA ete, © Student Eligibility: 1, Any major Student representing himself or a minor student represented by parent or guardian, of Indian nationality. 2, Secured admission to professional / technical courses in India or abroad through entrance test/ Merit based selection process. Student should be in age group of 16 to 40 years. Type of ‘Term Loan Facility Loan Limit | Maximum Up to Rs.100 lakh 1. Expenses considered for Loan: 2. Fee payable to college/school/Hostel. 3. Examination/Library/Laboratory fee. 4, Purchase of books/equipment/instruments/uniforms. 5. Caution deposit/building fund/Refundable deposit. 6. Travel expenses/passage money for studies abroad. 7. Purchase of computers ~ essential for completion of the course. 8. Any other expenses required to complete the course — like study tours, project work thesis etc. 9. To meet insurance premium for the policy on the life of the student. Reimbursement of these expenses already incurred/loan taken identified sources (to meet the contingencies) by the applicant on merits is allowed, subject to production of original receipts within one month if applicant has secured admission in India and within six weeks if the applicant is going abroad. Repayment | Upto / Maximum 15 years excluding moratorium Period Rate of interest CIBIL Range New Card Rate Floating linked to PLR (wel. 750 &above 9.25% (PLR- 7.90%) 01.11.2022) | [70010 749 9.40% (PLR 7.75%) 65010 6997-1__ | 9.65% (PLR-7.50%) 60010 649 10.15% (PLR-7.00%) Below 600 11.15% (PLR-6.00%) Moratorium | Duration of course + 6 months (Maximum 36 months) Period Prime I. Up to Rs.5.00 lakh — No Security. Only to take co-obligation of Parent/s & Security Assignment of future Income of student. 2. Above Rs.5.00 Lakh — Co-obligation of parents together with tangible security covering remaining exposure above Rs.5.00Lakhs with assignment of future income of students. The security can be in the Form of Immovable property, NSC, KVP, LIP, Bank Deposits etc. 29Collateral Liquid Securities in the form of LIP/ TD/Govt. Securities/Shares/Bonds etc. Security | acceptable to Bank to be explored. Guarantors | 1. Up to Rs. 5 Lakhs: Minimum one Acceptable Guarantor of Good Net worth. Collateral Security holders to be taken as guarantor. 2. Above Rs. 5 Lakhs: Minimum one Acceptable Guarantor of Good Net worth to be explored. Collateral Security holders to be taken as guarantor. Margin (To be brought in by the student/parent) (a) Up to Rs.4.00 Lakh: Nil (b) Above Rs 4.00 Lakh: Studies in India ~ 5%, Studies Abroad ~ 15% Prepayment | NIL Penalty Processing | 0.50% of Loan amount + GST Charges Legal Rs, 5000 + GST, if applicable. Charges ‘Other Franking Charges, CERSAT, Notice of Intimation, Filing Mortgage, Insurance Charges __ | Of propeny etc. (Valuation, Sanction Confirmation if Applicable) Membership | Borrower: Regular Membership fees @2.5% of loan amount or Rs.10000/- whichever is less (Minimum Rs.2000/-) Co-Borrower: 40 Shares each i.e, Rs.2000/- each Guarantors: Nominal membership. —- Primary Applicant Tncome to be considered repayment Student arents Income should be sufficient at Teast capacity serve interest during moratorium period f loan. arent ~arents Income should be sufficient to take are of loan repayment. Salaried Perso Gross Salary not less than INR.15, 000/-. In any case total deductions including statutory, existing and proposed EMI of the loans should not be more than 65% of the Gross Total Income/Gross Salary. Businessmen & Professionals: Gross Total Income not less than INR 3.00 lakh as per latest ITR. In Both cases, considering existing & proposed burden minimum DSCR. 1.50:1 must be maintained. Mode of | The interest, EMI, and other charges, if any, shall be paid by the borrower by Repayment _| depositing cash/cheque or by transfer of funds from other accounts. 05. TJSB- PERSONAL LOAN Purpose For Housing Repairs, Renovations, Medical Expenses, Marriage, Ceremonial Expenses, Repayment of Debts, Other Reasons/Purposes acceptable to Bank ete.Eligibility ‘Applicant: For Salaried Persons: - Employees of reputed and financially sound organization. Minimum Gross salary of INR.20,000/- per month and Confirmed service for at least one year. For Businessmen & Professionals: Business should have establishment of minimum of three years. Preferably, Applicant maintaining satisfactory SB/CD Account with us. Conduct of the account should be satisfactory. In case the applicant is not our customer and maintaining Account/having facilities with other banks, his conduct of account if found satisfactory after ion of his/her Statement then they said client will also be eligible for availing the facility under the scheme. Possibility to be explored from all individuals/ businessmeny professionals’ applicants for exclusive banking ith TISB Bank. Co-Applicant Spouse /parents of the applic t can be taken if required. Type of ‘Term Loan Facility Loan Limit [ Maximum Up to Rs.5.00 Lakhs Repayment | Maximum 60 months Period Rate of Interest rate starting @ 9.05% p. a Interest (wel. 01.11.2022) Prime NIL Security Collateral | Liquid Securities in the form of LIP/ TD/Gowt. Securities/Shares/Bonds etc. Security Acceptable to Bank to be explored. Margin Up to Rs.1.00 Lakhs: NIL Above Rs.1.00 Lakhs: 10% Prepayment | NIL Penalty Processing _ | 1% of Loan amount of minimum Rs.1000/- + GST whichever is higher Charges Legal Not applicable. Charges Other Franking Charges, ete. Charges Membership | Borrower: Regular Membership fees @2.5% of loan amount or RS.10000/- whichever is less (Minimum Rs.2000/-) Co-Borrower: 40 Shares each ive., Rs.2000/- each Guarantors: Nominal membership. ‘Assessment | Salaried Person: Gross Salary not less than INR.20,000/-. In any case total of deductions including statutory, existing, and proposed EMI of the loans. repayment | should not be more than 65% of the Gross Total Income/Gross Salary. capacity Businessmen & Professionals: Gross Total Income not less than INR 313.00 Lakhs as per latest ITR. In Both cases, considering existing & proposed burden minimum. DSCR 1.50:1 must be maintained. Mode of | The interest, EMI, and other charges, if any, shall be paid by the borrower by Repayment _| depositing cash /cheque or by transfer of funds from other accounts. 06. TJSB- GOLD LOAN (Advance against pledge of Gold Ornaments) Eligibility | Individual/(s) For New Customer: Statement of Savings account for minimum 6 months with existing bank to be taken on record and satisfactory conduct of account to be ascertained. For Existing Customer: Satisfactory banking operations in Savings account with TISB Bank for at least 3 months to be ascertained. ‘The applicant must be true owner of the gold ornaments and jewellery to be pledged with the bank. The residence of the borrower should be within vicinity of branch, If the applicant does not have account with us, then account to be opened first subject to compliance with KYC norms. ‘Age: Min 21 years Max: 65 years at Loan maturity. Purpose Purchase of Property Repayment of Unorganized debt Business Expansion & Business Development Education Marriage House Repairs & Renovations Any other purpose acceptable to bank Type of Term Loan and Bullet Repayment Facility Loan Limit | Maximum Amount - Rs.25.00 Lakh, depending upon repayment capacity of the applicant. Purpose of Loan faximum Loan Limit IHouse Repairs & jetropolitan Centre's —) Renovations IRs.10.00Lakh ther Centre's ~ s.6.00Lakh ther Reasons ip to Rs.25.00Lakh Repayment | Gold Loans up to Rs.2.00 Lakhs (Per PAN) Period i. Period of loan shall not exceed 12 months from the date of sanction. ii, Interest will be run on daily rest and charged at monthly basis to the account but will become due for payment along with principal only at the end of 12 32months from the date of sanction. (Explore the possibility of Monthly Interest Recovery in case of Bullet Repayment Loan) iii, Branches should maintain a Loan to Value (LTV) ratio of 75% on the outstanding amount of loan including the interest on an ongoing basis, failing which the loan will be treated as a Nonperforming Asset (NPA). Gold Loans above Rs.2.00 Lakhs up to Rs.25 Lakhs- i, Maximum repayment period of 12 months. ii, EMI to be stipulated for repayment of loan amount making maximum repayment period of 12 months from the date of disbursement. Price of the Security i.e., Gold Omaments HO-SLBC will decide and communicate rate of gold Loan lending rate on Ist of every month. This rate will be calculated after deducting appropriate margin. Calculation | Net weight of Gold Omaments as per Valuer's report X Gold Loan ofLoan | Lending rate declared by HO-SLBC for the month. Amount Rate of Interest Gold loan ] (Not Linked with CIBIL) - 8.80 %(PLR-8.35%) upto Rs.2,00lakhs ae CIBIL Range New Card Rate Floating linked to PLR eo volachs 750 &above —_| 9.25% (PLR- 7.90%) uptoRs. 70010 749 940% (PLR 7.15%) 25.00lakhs: 65010 6997-1 _ | 9.65% (PLR-7.50%) 600 t0 649 10.15% (PLR-7.00%) Below 600 1.15% (PLR-6.00%) Prime Pledge of Gold omaments and Jewellery Security Collateral | NIL Security Guarantors _| NIL Margin Not less than 25% off Valuation, HO ~ SLBC will decide and communicate per gram lending rate on Ist of every month after deducting appropriate margin. Close monitoring with respect to maintenance of adequate margin based on varying Market prices of gold to be ensured by HO — SLBC on monthly basis CIBIL Gold Loans up to Rs.2.00 Lakhs (Per PAN): NO CIBIL Gold loans above Rs.2.00 Lakhs up to Rs.25 Lakhs: 2.CIC’s Report to be taken on record as per HO circular issued from time to time. (Credit Report of CIBIL is mandatory) Prepayment | NIL Penalty & Processing Charges 33Legal Not Applicable. Charges Other Valuation charges, Franking Charges. Charges —_| Custody Charges: Rs.500/- per quarter if custody not taken (after closure of loan or date of expiry of loan) Membership | Nominal Membership for advances (total exposure) up to Rs.1.00 Lakh Gold loans above Rs.1,00 Lac: Regular Membership fees @2.5% of loan amount or Rs.10000/- whichever is Jess (Minimum Rs.2000/-) Valuation | From Approved Panel Gold Valuer. Assessment | Gold Loans up to Rs.2.00 Lakhs (Per PAN): NOT APPLICABLE of Gold Loans above Rs.2.00 Lakhs: repayment | Branch to obtain of borrower/s income proof. All other process as per bank capacity policy of term loan to be followed. ‘Mode of | The interest, EMI, and other charges, if any, shall be paid by the borrower by Repayment _| depositing cash/cheque or by transfer of funds from other accounts.RESEARCH METHODOLOGYRESEARCH METHODOLOGY The project undertaken during the summer training at “TJSB Bank Itd.” was study of retail loan the main aim of the study is to understand the retail loan provided by TJSB bank. It is the banks which understands the need of its customers & provide them best faci Data collected through observation and with the help of bank staff. For this project, the observation method has been used because of time limit for the completion of work. > Methods of data collection 1. Primary sources: ‘* Day to day interaction with Branch manager and Assistant branch manager. ‘* Day to day interaction with bank staff. '* Observation of loan files process. ‘© Interaction with customer. 2. Secondary sources: © Annual reports ¢ Loan Files © Retail Manual © Online website 36> IMPORTANCE OF THE PROJECT Because of the following reasons I prefer this project work to get the knowledge of the banking -m and its services especially retail lending Banking is an essential industry, Itis where we often wind up when we are seeking a problem in financial erisis and money related query. Banking is one of the most regulated businesses in the world. Banks remain important sources for career opportunities for the people. ILis vital system for developing economy for the nation. Bank can pay a dynamic role in delivery and purchase of customer durables. Retail loans are one of the very important products of banks. > OBSERVATION The staff's members are treating each other with respect and dignity. The employees here are very dedicated. The procedure followed is very systematic. The recorded maintained here is on fair basis and very systematic. Being the management trainee, I was there for a short period of time, but they treated me as if I was a part of the bank. > LIMITATIONS OF STUDY This project is limited up to TSB Bank only. Data is mostly secondary in nature. Authenticity relies on response given by the respondent. The information system is confidential & hence the banks records were not fully disclosed. 37DATA ANALYSIS & DATA INTERPRETATIONDATA ANALYSIS & DATA INTERPRETATION 1. De and Reserves of TJSB Sahakari Bank LTD. Particular (year) ‘Number of Deposit Number Reserves 31% March 2018 9875.23 861.04 31% March 2019 1070.28 972.12 31% March 2020 1373.92 1077.51 31° March 2021 12048.50 1161.78 31% March 2022 13336.28 1230.42 | tzoas 1733628 875,23 10700.28 1137392 .! 10000 | | 5000 | R82 072.1077. v1 7 2018 i ~ 2019 2020 2994 Deposit m Reserves 1230.42 2022 Data Interpretation: ‘© The Deposits and Reserves of TISB Bank of last five years shows the growth in every year. As per data collected of deposit, the growth rate of deposit from 2018 to 2019 is 8.35%, 2019 to 2020 is 6.30%, 2020 to 2021 is 5.93%, 2021 to 2022 is 10.69%. As per given, data of reserve the growth in form of percent for the years 2018 to 2019 is 12.90%, 2019 to 2020 is 10.84%, 2020 to 2021 is 7.82%, 2021 to 2022 is 5.90%. 2. Analysis of Fixed Deposits Interest Rate INTEREST RATES ON DOMESTIC TERM DEPOSITS (W.E-F.13.10.2022) Deposits less than Rs. 15 Lacs Particulars General / Co-operative Societies | Senior Citizens (p.a.) / Banks / Trusts / NRO (p.a.) T days to 14 days 3.75% 375% 3915 days to 90 days 4.00% 4.00% ‘91 days to 180 days 4.50% 4.50% 181 days to 12 months 5.00% 5.00% ‘Above 12 months to 36 months | 5.75% 6.25% ‘Above 36 months to 60 months | 6.00% 6.50% ‘Above 60 months to 120 months | 6.00% 6.50% Fixed Deposit Interest Rate 7.00% 6.00% 5.00% 4.00% 2.00% 2.00% 1.00% 0.00% 15-90 | 91-180 | 181-12 | 12-36 | 36-60 | 60-120 days | days | months | months | months | months (General 3.75% | a00% | 450% | 500% | 575% | 6.00% | 6.00% [Useniorcitien| 3.75% | 400% | 450% | 500% | 625% | 650% | 650% 7-14 days Data Interpretation: In the TISB Sahakari Bank are decided fixed deposit interest rate, as per data collection, For the Normal Customer are Minimum interest rate are 3.75% for 7- 14 days and Maximum interest rate are 6.00% for 60-120 months. While For the Sr. Citizen is minimum interest rate 3.75% for 7-14 days and Maximum interest rate are 6.50% for 60-120 days. For the period of 60-120 ‘months of interest rate are high for both Normal and Sr. Citizen Customer, They offer special interest rates to senior citizen because of the following reasons: «They offer special interest rates which tend to be higher, thereby resulting in more earnings. It creates a safe space for the money to grow in at a steady pace. + The interest earned on these deposits can be turned into monthly incomes thus providing ‘more peace in your retirement years. * The senior citizen fixed deposit can also be tax saver deposits which help get tax deductions under section 80C of the IT Act.Capital k Weighted Assets Ratio (CRAR) of TJSB Bank Lt Particular (year) as on 31% march CRAR in % 2018 14.20% 2019) 15.23% 2020 15.38% 2021 16.16% 2022 15.28% Capital-To-Risk Weighted Assets Ratio (CRAR) % Data Interpretation: CRAR is a financial ratio that represents financial strength of bank. Formula to calculated CRAR = Capital with Bank + Aggregate risk weighted asset CRAR is the amount keep in reserve by bank to cover losses on its loan, The minimum ratio of capital to risk-weighted assets is eight percent under Basel II and 10.5 percent under Basel II Basel II is a set of international banking regulations first released in 2004 by the Basel Committee on Banking Supervision provided a framework for regulatory supervision and set new disclosure requirements for assessing the capital adequacy of banks. High CRAR are above the minimum requirements under Basel If and Basel IT. Contribution of Tier I capital in total capital funds has increased to 84% during F.Y.2021- 22 as compared to 81% of the F.Y 2020-21 Crore CRAR (Tier I CRAR) of Bank was as high as 12.85%, which denotes the quality of your Bank’s capital Since the TISB Bank has the high CRSR it ensures that banks have enough cushion to absorb a reasonable amount of losses before they become insolvent and bank is less likely to become insolvent if unexpected losses occur. aLNonperforming Assets (NPA) of TJSB Bank Ltd. ‘Years Gross NPA % Net NPA % 2018 4.15% 0.22% 2019) 4.67% 0.19% 2020 5.86% 0.46% 2021 4.23% 0.00% 2022 3.93% 0.00% 2022 2021 2020 2019 2018 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% Net NPA mGross NPA Data Interpretation: ‘TISB has taken a constant step to reduce their Gross NPA and Net NPA and bank has got result, Gross NPA means total number of all the loan assets that haven't been repaid by the borrowers within the ninety-day period after the due date. Whereas Net NPA (NNPA) is the amount remaining after deducting doubtful and unpaid debts from the Gross NPA. It is the actual loss suffered by the bank. As per the data, the percentage of GNPA and NNPA is reducing year by year except for the FY 2019-20. Bank has managed to reduce the percentage of NNPA to zero in last two years. With continuous monitoring of loan accounts and initiation of strong recovery actions, where considered necessary Bank’s Gross NPAs reduced from 4.23% to 3.93% over the previous financial year. It is important to note that there was neither any write-off of Joans nor any sale/assignment of loans to ARCs during the year. aProfit / Loss of TJSB Sahakari Bank Ltd. Year Gross Profit (crores) ‘Net Profit (crores) 2018 202.58 125.75 2019 222.73 140.68 2020 198.46 120.29, 2021 228.69 163.01 2 236.81 154.53 Profit and Loss 2 Pe 200 150 100 1 Gross Profit in crores 50 1 Net profit in crores ° 2018 ©2019-2020 Data Interpretation: ‘+ Ina difficult year and under a challenging situation of covid 19 pandemic in F.Y. 2020- 21Bank has delivered strong performance with a gross profit of 229 Crores (15% higher than the gross profit of 198Crores last year) and net profit of 163 Crores (36% higher than the net profit of 120 Crores last year). ‘+ However, although there was a rise in Gross Profit of Bank, the Net Profit has decreased from 163 crores to 155 crores, Reasons for the decline include additional provisions made in compliance with the new guidelines issued by RBI during the year viz. a provision of 4.60 crores for the advances restructured under the framework for resolution of COVID- 19and an additional provision of 111.75 crores in respect of the Security Receipts received in the past from the ARCs (asset reconstruction companies) for the assets sold to them in the earlier years. aSUGGESTIONSUGGESTION They should increase the interest rate of FD. It should reduce lead time for processing of loan proposals. Bank should provide more facility to its member which may result to increase the no of members. It should simplify the application from and documentation. 45ION.CONCLUSIONS ‘TJSB Bank is such a reputed that it can very well go out and sell it product to outside customers and be a winner. Thus, retail sector of the bank is very vast areas especially if we consider retail Joan it’s one of the growing sectors of the bank which powers the bank in their operations. Though there are many areas of the loan sectors of the bank which can be improved. There are lots of changes which will happen in retail sector, but it is important to every bank to cope up with changes and maintain healthy competition with the other bank in the banking industry. Retail sector helps you to learn lot of things such as CIBIL data or analyzing quantum of loan and advances on which study can be established with the help of proper format. Thus, retail banking sector remains one of the most growing business areas in the banking sector. TJSB bank is continuously improving and coping with innovative technology for leading retail sector of banking and increase of its customers and branch base will provide further lead in this space as compared to other competitors. The future of retail banking is the internet banking, which is preferred over other, mode of transaction and will outperform the traditional mode. 47REFERENCESREFERENCES TISB bank manual of retail loan Circular of interest rate Annual report of TISB bank Financial markets and banking operations book hitps:/Avww.tjsbbank.co.in/ https://www.tisbbank.co.in/about_us https://www.tjsbbank.co.in/progress-at-glance 49