Bharat Bank

TO UNDERSTAND WORKING PROCESSES OF LOAN
AND CIBIL SCORE
A PROJECT REPORT
Submitted by
RUNAL LELEAT GONSALVES

(PGDM 2017-19)
In partial fulfillment for the award of the degree

Of
POST GRADUATE DIPLOMA IN MANAGEMENT
In
FINANCE
AT
INSTITUTE FOR FUTURE EDUCATION, ENTREPRENEURSHIP AND

LEADERSHIP
Off Karla Phata, Ekveera Devi Gramasthan Road, Gut No-178,Village-Karla,

Taluka-Maval, Dist.- Pune, India
JULY 2018
1
Company Certificate
2
INSTITUTE FOR FUTURE EDUCATION,
ENTREPRENEURSHIP AND LEADERSHIP
BONAFIDE CERTIFICATE
This is to certify that this project report "TO UNDERSTAND WORKING PROCESSES
AND TECHNIQUES OF BHARAT BANK" is the bonafide work of "Runal Leleat
Gonsalves" who carried out the project work under my supervision.
Prof. Suresh Kadam Wing Commander Sudhir Salunkhe
ACADEMIC SUPERVISOR DEAN SIR
3
ACKNOWLEDGEMENT
Before we get into the thick of thing, I would like to say that it was a great pleasure &
privilege for me to have the opportunity of undertaking the training at the Bassine Catholic
cooperative bank for a period of 60 days. I would like to thank the Bank for providing me such an
opportunity.
I express my sincere thanks to my project guide, Mr. Suresh Kadam, Designation prof,
Finance for guiding me right from the inception till the successful completion of the project. I
sincerely acknowledge him for extending their valuable guidance, support for literature, critical
reviews of project and the report and above all the moral support he had provided to me with all
stages of this project.
I would also thank my Institution and my faculty members without whom this project
would have been a distant reality. I am sure that the knowledge & information that I have gained
during this period would be of immense value for my growth in business world.
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PREFACE
An employee when joins the organization is just a raw individual, who does not possess
the desired level of skill and knowledge to produce the standard output. Also, the employees are
required to be up to date according to the technological changes. To achieve these objectives some
kind of training is required. In other words the organization need to maintain a viable and
knowledgeable work force to meet the current and future challenges. For this training is the only
medium/method/weapon by which organization can achieve the objectives. So training is a
continuous process, which exist till the organization sustains.
The 60 days training program has been introduced by the iFEEL for an elaborate and
practical study on selected topics related to Management from the company.
In this session I took training in BASSINE CATHOLIC BANK, in loan section of that
bank in which I got the chance to know the procedure by which bank lends money to its members.
Since it is a cooperative bank so it gives loan to its members only, hence an applicant has to become
member of this bank before borrowing money from it.
The project work about the survey is a small piece of research work in various aspects of
the training. While carrying out I got opportunities to interact with employees at various levels and
the people which enhanced my practical knowledge and experience in regard to the topic.
In this report I have shown the loans provided by the bank and its recovery procedure .I
also include current facts and figures related to the topic.
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Table of Contents
Sr. No. Item Page NO
1 Bonafide Certificate - Company Supervisor 2
2 Bonafide Certificate – Academic Supervisor 3

3 Acknowledgement 4
4 Preface 5
5 Table of contents 6
5 Index 6-7
6 List of Tables 8
7 List of Tables /Graphs/Diagrams 8
8 Chapters:
1. Industry Introduction 9-16
2. Co-operative Bank 17-22
3. Goals of Internship 23-24
4. The Bassine Catholic Co-operative Bank 25-29
5. Terminology 30-33
6. Loans and Credit Facility 34-48

7. CIBIL Score 49-56
8. Learning 57-60
9. Conclusion 61
Bibliography / Reference 62
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INDEX
Sr. No Content Page
1. Introduction Introduction
1.1 What is Banking 9
1.2 Standard Activates Of Bank 9-16
2. Co-operative Bank
2.1 Introduction on Co-operative Bank 17-19
2.2 Co-operative Banks in India 19-22

3. Goals of Internship 23-24
4. The Bassine Catholic Co-operative Bank
4.1 History/ Mission & Vision 25-29
5. Terminology
5.1 What is Credit Facilities 30-33
6. Loans and Credit Facility
6.1 Loan and Credit Facilities of BCCB 34-48
7. CIBIL Score
7.1 What is CIBIL score? 49-50

7.2 What is consider a good credit score? How is my score computed? 51-54
7.3 Reasons for a low credit score 54-56
8. Learning
7.1 Major Learning 57-58
7.2 Suggestion 58-60
9 Conclusion 61
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v
Ch.1 INDUSTRY
INTRODUCTION
8
INDUSTRY INTRODUCTION
1.1 WHAT IS BANKING?

Banking in a traditional sense is the business of accepting deposits of money from public For the
purpose of lending and investment. These deposits can have a distinct feature like being withdrawn
able by cheques, which no other financial institution can offer. In Addition, banks also offer
financial services, which include:
The Issue of demand draft & traveler’s cheque.
Credit cards
Collection of cheques, bill of exchange.
Safe deposit lockers
Custodian services.
Investment and Insurance Services.
The business of banking is highly regulated since banks deal with money offered to them by the
public and ensuring the safety of this public money is one of the prime responsibilities of any bank.
That is why banks are expected to be prudent in their leading and investment activities. Every bank
has a compliance department, which is responsible to ensure that all the services offered by the
bank, and the processes followed are in compliance with the local regulations and the Bank’s
corporate policy.
The major regulations and act govern the banking business are:-
Banking Regulation Act, 1949
Foreign Exchange Management Act, 1999
Indian Contract Act
Negotiable Instruments Act, 1881
Bank lends money either for productive purposes to individual, firms, Corporate etc. for buying
house property, cars and other consumer durables and for investment Purposes to individuals and
the others. However, banks do not finance any Speculative activity. Lending is risk taking. The
depositors of banks are also assured of safety of their money by deploying some percentage of
deposit in statutory Reserves like SLR & CLR.
1.2 STANDARD ACTIVITIES OF BANK
Banks act as payment agents by conducting checking or current accounts for customers, paying
cheques drawn by customers on the bank, and collecting cheques deposited to customers’ current
accounts. Banks also enable customer payments via other payment methods such as telegraphic
transfer, and ATM.
9
Banks borrow money by accepting funds deposited on current accounts, by accepting term
deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making
advances to customers on current accounts, by making installment loans, and by investing in
marketable debt securities and other forms of money lending.
Banks provide almost all payment services, and a bank account is considered indispensable by
most businesses, individuals and governments. Non-banks that provide payment services such as
remittance companies are not normally considered an adequate substitute for having a bank
account.
Banks borrow most funds from households and non-financial businesses, and lend most funds to
households and non-financial businesses, but non-bank lenders provide a significant and in many
cases adequate substitute for bank loans, and money market funds, cash management trusts and
other non-bank financial institutions in many cases provide an adequate substitute to banks for
lending savings too.
REVENUE GENERATION
A bank can generate revenue in a variety of different ways including interest, transaction fees and
financial advice. The main method is via charging interest on the capital it lends out to customers.
The bank profits from the differential between the level of interest it pays for deposits and other
sources of funds, and the level of interest it charges in its lending activities.
This difference is referred to as the spread between the cost of funds and the loan interest rate.
Historically, profitability from lending activities has been cyclical and dependent on the needs and
strengths of loan customers and the stage of the economic cycle. Fees and financial advice
constitute a more stable revenue stream and banks have therefore placed more emphasis on these
revenue lines to smooth their financial performance.
RISK AND CAPITAL
Banks face a number of risks in order to conduct their business, and how well these risks are
managed and understood is a key driver behind profitability, and how much capital a bank is
required to hold. Some of the main risks faced by banks include:
 Credit risk: risk of loss arising from a borrower who does not make payments as promised.
 Liquidity risk: risk that a given security or asset cannot be traded quickly enough in the
market to prevent a loss (or make the required profit).
 Market risk: risk that the value of a portfolio, either an investment portfolio or a trading
portfolio, will decrease due to the change in value of the market risk factors.
 Operational risk: risk arising from execution of a company’s business functions.
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The capital requirement is a bank regulation, which sets a framework on how banks and depository
institutions must handle their capital. The categorization of assets and capital is highly
standardized so that it can be risk weighted
ECONOMIC FUNCTIONS OF BANKS
The economic functions of banks include:
Issue of money, in the form of banknotes and current accounts subject to cheque or payment
at the customer’s order. These claims on banks can act as money because they are
negotiable or repayable on demand, and hence valued at par. They are effectively
transferable by mere delivery, in the case of banknotes, or by drawing a cheque that the
payee may bank or cash.
Netting and settlement of payments – banks act as both collection and paying agents for
customers, participating in interbank clearing and settlement systems to collect, present, be
presented with, and pay payment instruments. This enables banks to economies on reserves
held for settlement of payments, since inward and outward payments offset each other. It
also enables the offsetting of payment flows between geographical areas, reducing the cost
of settlement between them.
Credit intermediation – banks borrow and lend back-to-back on their own account as
middle men.
Credit quality improvement – banks lend money to ordinary commercial and personal
borrowers (ordinary credit quality), but are high quality borrowers. The improvement
comes from diversification of the bank’s assets and capital which provides a buffer to
absorb losses without defaulting on its obligations. However, banknotes and deposits are
generally unsecured; if the bank gets into difficulty and pledges assets as security, to raise
the funding it needs to continue to operate, this puts the note holders and depositors in an
economically subordinated position.
BANKING IN INDIA:-
Banking means accepting for the purpose of landing or investment of deposits of money from the
public repayable on demand or otherwise one withdraw able by cheque, draft or otherwise.
Banking in India has its origin as early as the Vedic period. It is believed that the transaction
From money lending to money banking must have occurred even before Manu, the great Hindu
Jurist, who has devoted a section of his work to deposits and advances and laid down the rules
relating to rate of interest, During Mugal Period, the native bankers played a very important role
in lending money and finance foreign trade and commerce. During the days of the east- India
Company, it was the turn of the agency house to carry on the banking business the general bank
of India was the first joint stock bank to be established in the year 1786. The others that followed
were the Bank of Hindustan and the Bengal Bank. The Bank of Hindustan is reported to have
continued till 1906 while the other two failed in the meantime. In the first half of the 19th century
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the east-India company established three banks, the Bank of Bengal in 1809, the Bank of Bombay
in 1840 and the banks of Madras in 1843.
These three banks are also known as the presidency banks were amalgamated in 1920 and a new
Bank – the imperial bank of India established ion 27th January 1921. With the passing of the state
bank act 1955 the under taking of the imperial Bank of India is taken over by the newly constituted
the state bank of India.
NATIONALIZATION
The GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from
the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step
as a “masterstroke of political sagacity.” Within two weeks of the issue of the ordinance, the
Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it
received the presidential approval on 9 August 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason
for the nationalization was to give the government more control of credit delivery. With the second
dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on,
in the year 1993, the government merged New Bank of India with Punjab National Bank. It was
the only merger between nationalized banks and resulted in the reduction of the number of
nationalized banks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace
of around 4%, closer to the average growth rate of the Indian economy.
LIBERALIZATION
In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization,
licensing a small number of private banks. These came to be known as New Generation tech-savvy
banks, and included Global Trust Bank (the first of such new generation banks to be set up), which
later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank
and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the
banking sector in India, which has seen rapid growth with strong contribution from all the three
sectors of banks, namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been set up with the proposed relaxation in the norms
for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights
which could exceed the present cap of 10%, at present it has gone up to 74% with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time, were used to
the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave
ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led
to the retail boom in India. People not just demanded more from their banks but also received
more.
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Currently (2007), banking in India is generally fairly mature in terms of supply, product range and
reach-even though reach in rural India still remains a challenge for the private sector and foreign
banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have
clean, strong and transparent balance sheets relative to other banks in comparable economies in its
region. The Reserve Bank of India is an autonomous body, with minimal pressure from the
government. 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.
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, especially retail banking, mortgages and
investment services are expected to be strong. One may also expect M & As, takeovers, and asset
sales.
In March 2006, the Reserve Bank of India allowed Warburg Pinups to increase its stake in Kotak
Mahindra Bank (a private sector bank) to 10%. 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.
In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank, ING
Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. And banks from
the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank,
Allahabad Bank among others. ANZ Grindlays Bank, ABN-AMRO Bank, American Express
Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry.
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INDIAN BANKING INDUSTRY
ORGANISED BANKS UNORGANISED BANKS
RBI
INDIGENOUS
COMMERCIAL
BANKS
MONEY LENDERS
NON SHEDULED
COMM. BANKS
SHEDULED UNREGULED
COMM. BANKS NON BANKERS
STATE BANK GROUP
NATIONALISED
BANK
FOREIGN BANK
COOPERATIVE
BANK
INDIAN BANK
STATE COOPERATIVE BANK
CENTERAL COOPERATIVE BANK
PRIMARY AGRICULTURE CREDIT

SOCIETY
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INDIAN BANKING INDUSTRY
The Indian Banking system has the Reserve Bank of India (RBI) as the apex body for all Matters
relating to the banking system. It is the Combination of Banks of India and bankers to all others
banks as well.
The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949
can be broadly classified into two major categories, non-scheduled banks and scheduled banks.
1. Schedule Banks:-
These banks must have paid-up capital and reserve of mot less than Rs. 50, 00,000. They must
satisfy the RBI than its affairs are mot conducted in a manner detrimental to the interests of its
depositors. These are further classified as follow:
 State co-operative Banks
 Commercial Banks
Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership,
commercial banks can be further grouped into nationalized banks, the State Bank of India and its
group banks, regional rural banks and private sector banks (the old/ new domestic and foreign).
These banks have over 67,000 branches spread across the country in every city and villages of all
nook and corners of the land.
2. Non-Schedule Banks:-
These are banks, which are not included in the second schedule of the Banking Regulations Act,
1965. It means they do not satisfy the conditions laid down by that schedule. They are further
classified as back:
Central co-operative banks and primary credit societies
Commercial Banks
COMMERCIAL BANKS
Commercial Banks in India are broadly categorized into Scheduled Commercial Banks and
Unscheduled Commercial Banks. The Scheduled Commercial Banks have been listed under the
Second Schedule of the Reserve Bank of India Act, 1934. The selection measure for listing a bank
under the Second Schedule was provided in section 42 (60 of the Reserve Bank of India Act, 1934.
15
The modern Commercial Banks in India cater to the financial needs of different sectors. The main
functions of the commercial banks comprise:
 transfer of funds
 acceptance of deposits
 offering those deposits as loans for the establishment of industries
 Purchase of houses, equipment’s, capital investment purposes etc.
 The banks are allowed to act as trustees. On account of the knowledge of the financial
market of India the financial companies are attracted towards them to act as trustees to take
the responsibility of the security for the financial instrument like a debenture.
 The Indian Government presently hires the commercial banks for various purposes like tax
collection and refunds, payment of pensions etc.
CURRENT SCENARIO
The industry is currently in a transition phase. On the one hand, the PSBs, which are the mainstay
of the Indian Banking system, are in the process of shedding their flab in terms of excessive
manpower, excessive non-Performing Assets (NPAs) and excessive governmental equity, while
on the other hand the private sector banks are consolidating themselves through mergers and
acquisitions.
PSBs, which currently account for more than 78 percent of total banking industry assets are saddled
with NPAs (a mind-boggling Rs 830 billion in 2000), falling revenues from traditional sources,
lack of modern technology and a massive workforce while the new private sector banks are forging
ahead and rewriting the traditional banking business model by way of their sheer innovation and
service. The PSBs are of course currently working out challenging strategies even as 20 percent of
their massive employee strength has dwindled in the wake of the successful Voluntary Retirement
Schemes (VRS) schemes.
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Ch.2
CO-OPERATIVE
BANKS
17
CO-OPERATIVE BANKS:-
2.1 Introduction
Co-operative banks are small-sized units organized in the co-operative sector which operate both
in urban and non-urban centers. These banks are traditionally centered on communities, localities
and work place groups and they essentially lend to small borrowers and businesses.
The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary
cooperative banks located in urban and semi-urban areas. These banks, until 1996, could only lend
for non-agricultural purposes.
However, today this limitation is no longer prevalent. While the co-operative banks in rural areas
mainly finance agricultural based activities including farming, cattle, milk, hatchery, personal
finance, et cetera, along with some small scale industries and self-employment driven activities,
the co-operative banks in urban areas mainly finance various categories of people for self-
employment, industries, small scale units and home finance.
Cooperative Banks in India are registered under the Co-operative Societies Act. The cooperative
bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and
Banking Laws (Co-operative Societies) Act, 1965.
These banks provide most services such as savings and current accounts, safe deposit lockers, loan
or mortgages to private and business customers. For middle class users, for whom a bank is where
they can save their money, facilities like Internet banking or phone banking is not very important.
Co-operative banks function on the basis of ‘no-profit no-loss. Co-operative banks, as a principle,
do not pursue the goal of profit maximization. Therefore, these banks do not focus on offering
more than the basic banking services. So, co-operative banks finance small borrowers in industrial
and trade sectors, besides professional and salary classes.
Co-operative banks differ from stockholder banks by their organization, their goals, their values
and their governance. In most countries, they are supervised and controlled by banking authorities
and have to respect prudential banking regulations, which put them at a level playing field with
stockholder banks. Depending on countries, this control and supervision can be implemented
directly by state entities or delegated to a co-operative federation or central body.
Even if their organizational rules can vary according to their respective national legislations, co-
operative banks share common features:
• Customer-owned entities: in a co-operative bank, the needs of the customers meet the needs of
the owners, as co-operative bank members are both. As a consequence, the first aim of a co-
operative bank is not to maximize profit but to provide the best possible products and services to
its members. Some co-operative banks only operate with their members but most of them also
admit non-member clients to benefit from their banking and financial services.
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• Democratic member control: co-operative banks are owned and controlled by their members,
who democratically elect the board of directors. Members usually have equal voting rights,
according to the co-operative principle of “one person, one vote”.
• Profit allocation: in a co-operative bank, a significant part of the yearly profit, benefits or surplus
is usually allocated to constitute reserves. A part of this profit can also be distributed to the co-
operative members, with legal or statutory limitations in most cases. Profit is usually allocated to
members either through a patronage dividend, which is related to the use of the co-operatives
products and services by each member, or through an interest or a dividend, which is related to the
number of shares subscribed by each member.
Co-operative banks are deeply rooted inside local areas and communities. They are involved in
local development and contribute to the sustainable development of their communities, as their
members and management board usually belong to the communities in which they exercise their
activities. By increasing banking access in areas or markets where other banks are less present –
SMEs, farmers in rural areas, middle or low income households in urban areas – co-operative
banks reduce banking exclusion and foster the economic ability of millions of people. They play
an influential role on the economic growth in the countries in which they work in and increase the
efficiency of the international financial system. Their specific form of enterprise, relying on the
above-mentioned principles of organization, has proven successful both in developed and
developing countries.
The Cooperative banks in India started functioning almost 100 years ago. The Cooperative bank
is an important constituent of the Indian financial system judging by the role assigned to
cooperative, the expectations the cooperative is supposed to fulfill, their number, and the number
of offices the cooperative bank operate Though the cooperative movement originated in the West,
but the importance of such banks have assumed in India is rarely paralleled anywhere else in the
world.
The cooperative banks in India play an important role even today in rural financing the Businesses
of cooperative bank in the urban areas also have increased phenomenally in recent years due to the
sharp increase in the number of primary co-operative banks.
Cooperative Banks in India are registered under the Co-operative Societies Act. The cooperative
bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and
Banking Laws (Co-operative Societies) Act, 1965.
2.2 Cooperative banks in India :
Farming
Cattle
Milk
Hatchery
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Personal finance
Cooperative banks in India finance urban areas under:
 Self-employment
 Industries
 Small scale units
 Home finance
 Consumer finance
 Personal finance
Some facts about Cooperative banks in India
 Some cooperative banks in India are more forward than many of the state and private sector
banks.
 According to NAFCUB the total deposits & landings of Cooperative Banks in India is much
more than Old Private Sector Banks & also the New Private Sector Banks.
 This exponential growth of Cooperative Banks in India is attributed mainly to their much better
local reach, personal interaction with customers, and their ability to catch the nerve of the local
clientele.
There are two main categories of the co-operative banks.
(a)Short term lending oriented co-operative Banks – within this category there are
three sub categories of banks viz state co-operative banks, District co-operative banks and Primary
Agricultural co-operative societies.
(b) Long term lending oriented co-operative Banks – within the second category there
are land development banks at three levels state level, district level and village level.
The cooperation banking structure is divided into following five categories

2. Primary urban cooperative banks
3. Primary agriculture credit societies
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4. District central cooperation bank
5. State cooperative bank
6. Land development bank
Primary urban cooperative bank:
The term Urban Co-operative Banks (UCBs), though not formally defined, refers to primary
cooperative banks located in urban and semi-urban areas. These banks, till 1996, were allowed to
lend money only for non-agricultural purposes. This distinction does not hold today. These banks
were traditionally centered around communities, localities work place groups. They essentially
lent to small borrowers and businesses. Today, their scope of operations has widened considerably.
Primary agriculture credit societies:
Agriculture continues to be the most vital sector of Indian economy, contributing a major share to
our national income and also providing livelihood to the majority of our population. A strong base
of agriculture growth is must for the overall economic development in a country like India. So to
help the farmers and make the financial help for them these cooperative societies are established
.these societies finance farmers not only for their short term requirements (use of improved seeds,
fertilizers, insecticides, etc.) but for medium and long term(irrigation And land development
activities)activities also.
District central cooperation bank:
These are the principal co-operative societies in the districts, in a state, the primary object of which
is financing other co-operatives, particularly the PCAs in the district. The DCCBs came in to
existence after the passing of Co-operative Societies Act1912. These institutions also undertake
banking business.
These institutions act as Balancing Centers of Finance at the district level. They provide the short
term and medium term credit to the agriculturists. They also supervise the PCAs in the districts.
21
State cooperative bank:
The state cooperative bank is the apex body of cooperative bank in any state. The long-term
cooperative credit structure has two tiers in many states with Primary Cooperative Agriculture and
Rural Development Banks (PCARDB) at the primary level and State Cooperative Agriculture and
Rural Development Bank at the state level. Under the Banking Regulation Act 1949, only State
Cooperative Apex Banks, District Central Cooperative Banks and select Urban Credit
Cooperatives are qualified to be called as banks in the cooperative sector.
Land development bank:
The long term credit needs of the agricultural sector are met by another type of co-operative
institutions known as Land Development Banks. The Land Development Banks meet the
requirements of the farmers for developmental purposes viz., provision of equipment like pump-
sets, tractors and machinery and land improvement in the form of leveling, bundling, reclamation
of land, fencing, sinking of new wells and repairs to old wells, Loans are granted on the security
of mortgage of immovable property of the farmers.
Credit cooperatives are the oldest and most numerous of all the types of cooperatives in India.
The cooperative credit institutions in the country may be broadly classified into urban credit
cooperatives and rural credit cooperatives. There are about 2090 urban credit cooperatives and
these societies together constitute for about 10 percent of the aggregate banking business and
therefore regarded as an important segment of the banking system. The urban credit
cooperatives are also popularly known as Urban Cooperative Banks. The rural credit
cooperatives may be further divided into short-term credit cooperatives and long-term credit
cooperatives. With regard to short-term credit cooperatives, at the grass-root level there are
around 92,000 Primary Agricultural Credit Societies (PACS) dealing directly with the
individual borrowers. At the central level (district level) District Central Cooperative Banks
(DCCB) function as a link between primary societies and State Cooperative Apex Banks (SCB).
22
Cp.3 GOAL OF
INTERNSHIP
23
GOALS OF INTERNSHIP
While joining Bassine Catholic Bank, I wanted to learn as much as possible. I knew that an
internship is an opportunity to learn which helps us put the theories we learnt in the books into
practice. It will help us build our career. It is the period when we will be able to groom ourselves
and become ready to join the real world. During the internship period, I had planned to achieve
the following goals:
 To learn about the overall function of different departments of Bassine Catholic Bank
(BCCB) namely Customer Service Department (CSD), Credit Department, Teller and
Operations in brief.
 To learn as much as possible from the members of the bank through good and friendly
relationship.
 To learn about different products of the bank.
 To increase communication skills and interpersonal skills by communicating with the
customers in the CSD.
 To increase the marketing skills by going for marketing with the seniors and selling the
products.
 To increase the PR by knowing different people.
 To conduct a customer satisfaction survey related to the customers’ satisfaction in terms
of different departments to which the customers are directly interacting.
 To find out what the customers’ attitude towards the service provided by the bank.
 To use the theoretical knowledge from the coursework to conduct survey and analyze
the result.
 To learn more about what happens in the banking sector and compare it to the theoretical
knowledge obtained in the lectures.
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Cp.4 THE BASSINE
CATHOLIC
COOPERATIVE BANK
25
MANAGEMENT TEAM OF BASSINE CATHOLIC
COOPERATIVE BANK
NAME POST
MR. ONIL JOHN ALMEIDA CHAIRMAN
MR.YURI DOMNIC VICE-CHAIRMAN
MR. BRIAN BARTHOL NORONHA DIRECTOR
MR. BENOLD PATRICK DIAS DIRECTOR
MR. SUNIL MARSHAL D’MELLO DIRECTOR
MR. RAYAN INGNATIUS FERNANDES DIRECTOR
MR. WILSON DOMNIC MACHADO DIRECTOR
MR. DOMNIC SEBESTIAN D’MELLO DIRECTOR
MRS. CLERA PIUS ALMEIDA DIRECTOR
MRS. BRIJDINA COUTINHO FUNCTIONAL DIRECTOR (CEO)
MR. FRANCIS J. DCOSTA BANKING EXPERT
MR. CHATUIRA RAM ASST. MANAGER
ADV. ALBERT P. DABRE BANKING EXPERT
26
4.1 HISTORY:-
Bassein catholic Co-op bank ltd was established as Credit Co-operative Society by Social reformer
Rev Msgr. P. J. Monis, 27hristian missionery on 6th February 1918 along with social activists in
vasai to bring financial freedom in the region of Vasai. Through his mission he succeeded in up-
lifting the society, which has brought massive change in the people’s lifestyle, education and
financial stability.
Milestones.
 Established as credit society in the year 6th February 1918
 Converted into Urban Co-Op bank in 1966.
 “Scheduled bank status” conferred on the Bank in 1990.
 Implementation of Core Banking Software in 2010 across all branches.
 Tied up with SIDBI for Credit link Capital Subsidy
 Tied up with CRISIL & SMERA credit rating agency for Rating for Units.
 Introduction of RUPAY debit card
 AD-1 License granted by RBI in 2015.
 Papdy, Bangli and Holi branch completed 50 glorious years of service.
 Net banking Facility in 2016
VISION:
1. Providing the loans to the cooperative societies.
2. Starting the new schemes for the cooperative societies to recover the N.P.A (non-
Performing assets)
3. Opening the education center for cooperative societies to improve/increase the business
through giving them proper training & suggestions.
4. Providing the loans for new schemas time to time.
5. Repairing the plans for encouraging & awarding the employees of the Bank.
27
MISSION:
Mission/Target of the bank is to help the self helped groups by providing those loans at low rate.
Providing the education to the workers/employees of the cooperative societies and managing the
financial status of the cooperative societies.
1. Achieving the schedule status for the bank.
2. Providing the retail banking to the customers with the help of Information booth.
ACHIEVEMENT:
The spectacular performance of the bank, over the years has been duly acknowledged by Co-
operative Banking Association/Federations by bestowing the following awards.
1. The Maharashtra State Co-operative Banks Association Ltd., in the year 2014-15 awarded
the Bank “Late Padmabhushan Vasant Dada Patil, Best Urban Co-op. Bank” amongst all
scheduled/ multi state co-operative banks in Maharashtra.
2. Avis Publication has awarded the Bank “BANCO PURASKAR 2014”- 1st prize for the
best performance for the financial year 2013-2014 in the category of Banks having deposits
of Rs. 3000 to Rs. 5000 crore.
3. ‘Sahakar Bhushan’ Award 2013-14 by Maharashtra Government.
4. ‘Pratibimba’ Award 2013-14 for Annual Report by Sahakar Sugandha magazine published
by Sahakar Bharti.
5. The Indian Banker magazine has given 1st rank to our Bank on the basis of Average Cost
of Funds, Return on Assets, CRAR ,and Business per Empolees
6. Banking Frontiers Year 2011 Award for Excellence in Recovery & NPA Management in
large Urban Co-Operative Banks Category the Bank has 45 branches with 37 Onsite and 2
off site ATMs. All the branches operate on CBS.
PRODUCTS \ LINE OF ACTIVITIES:-

Bassine Catholic cooperative Bank has various products for the customers like Deposits, and
Loans.
When we say about the deposits the Bassine Catholic cooperative bank has the following accounts
Current account, saving bank account, Term deposit, R.D., in term deposit bank further has the
following schemes like fixed deposits. It includes different types of loan schemes. Currently the
28
Bassine Catholic cooperative bank has many loans schemes. Like personal loans, home loans,
vehicles loans, Education loans, agriculture loan, Minor irrigation, self-helped group scheme, self-
employed group scheme etc.
PERFORMANCE IN 2016 & 2017:
2017 2016
PARTICULERS (Rs. In Cr) (Rs. In Cr)
Business Mix 9034.47 7702.76

Deposits 5567.46 4727.38
Advance 3467.01 2975.38
Gross Income 622.74 564.78
Net Profit 142.72 119.64
Owned Funds 841.03 758.35
Gross NPA(%) 4.36% 4.11%
C.R.A.R 17.40% 18.06%
CURRENT SCENARIO:-
Out of fifty four branches, one branch has crossed business mix of Rs. 1100 Cr., eight branches
crossed business mix of Rs.300 Cr., and seven branches have crossed business of Rs, 200 Cr.
29
Cp.5 TERMINOLOGY
30
5.1 WHAT IS CREDIT FACILITY?
Unlike personal loans (where people borrowing the funds and the collateral are not likely to
change), loans in the world of business require additional flexibility in order to meet the needs of
the business as well as satisfy the requirement of the lender. Accomplishing this seemingly difficult
task is done by using a credit facility which is an overall credit line that can be broken into multiple
credit lines and collateral.
The term credit can be understood by giving light on following points:
CREDIT (LOANS AND ADVANCES)
The profit of a bank depends primarily on the utilization of its fund. But Bank cannot lend its fund
fully. As per Banking Company Act 1991 every banking company has to maintain a specified
minimum (presently 25%) of the total of its demand and time liabilities in the form of cash and
approved securities with RBI. This percentage or ratio is termed Statutory Liquid Ratio. Further
every scheduled bank has to maintain with RBI an average daily balance, the amount of which has
not to be less than a particular percentage (presently 6%) of the total of its demand and time
liabilities. As such Bank generally goes for short-term finance although a small portion of its total
deposit is invested as long term lending. Banks allow different forms advance.
CREDIT DEPARTMENT
CD Banking business primarily involves accepting deposits from the public and investing or
lending the same and thereby making profit out of it. However, lending money is not without risk
and therefore banks make loans and advances to farmers, traders, businessmen and industrialist
against either tangible (land, building, stock etc.) or intangible security. Even then, the banks run
the risk of default in repayment. Therefore, the banks follow cautious measures while lending
money to others. This core function of a bank is performed by the Credit Department of the bank.
In this case, the relationship of bank and customer is that of the creditor and debtor.
Unlike personal loans where the person borrowing the funds and the collateral are not likely to
change, loans in the world of business require additional flexibility in order to meet the needs of
the business as well as satisfy the requirement of the lender. Accomplishing this seemingly difficult
task is done by using a credit facility which is an overall credit line that can be broken into multiple
credit lines and collateral.
TYPES OF CREDITS OFFERED BY A BANK

Banks usually provides following types of credit:
31
1. CASH CREDIT (hypo.)
2. CASH CREDIT(pledge)
3. LTR
4. TERM LOAN
5. LEASE FINENCING
6. SECURED OVERDRAFT (SOD)
7. OTHERS
1. CASH CREDIT (HYPO.)-:

Cash Credit or continuing credits are those that form continuous debits and credits up to a limit
and have and expiration date. A service charge that is effect an interest charge is normally made
as a percentage of the value of purchases. These credits may be of the nature of pledged and /or
hypothecated and banks should report these in separate heads incorporated under the main head
cash credit.
Under this arrangement a credit is sanctioned against hypothecation of the raw materials or
finished goods. The letter of hypothecation creates a charge against the goods in favor of the Bank
but neither the ownership nor its possession is passed on to it; only a right or interest in the goods
is created in favor of the Bank and the borrower binds himself to give possession of the goods to
the bank when called upon to do so. When the possession is handed over, the charge is converted
into pledge. This type of facility is generally given to the reputed borrowers of undoubted integrity.
2. CASH CREDIT (PLEDGE)-:

Under this arrangement a cash credit is sanctioned against pledge of goods or raw materials. By
signing the letter of pledge, the borrower surrenders the physical possession of the goods under
the Banks effective control as security for payment of Bank dues. The ownership of the goods,
however, remains with the borrower. The pledge creates an implied lien in favor of the Bank on
the underlying merchandise. In the event of failure of the borrower to honor his commitment the
Bank can sell the goods for recovery of the advance. No collateral security is normally asked for
grant of such credit.
32
3. LOAN AGAINST TRUST RECEIPTS (LTR)-:
This is a loan facility up to a satisfactory limit to the traders / customers by a Bank against security
of the value of the imported merchandise. This item also includes loan against Trust Receipts.
4. TERM LOAN-:
A Bank advance for a specific period repaid with interest under fixed schedules. The term loans
may be as follow:
Short Term: Up to and including 12 months.
Medium Term: More than 12 months up to and including 60 months.
Long Term: More than 60 months. [This item includes lease financing]
5. LEASE FINENCING-:
An entrepreneur, under this Scheme, may avail of the lease facilities to procure industrial
machinery (without having to purchase it by down payment) with easy repayment schedule. The
clients also get special rebate in their income-tax payment under the scheme.
6. SECURED OVERDRAFTS (SOD)-:
A loan facility on a customer’s current account at a Bank permitting him to overdraw up to a

certain agreed limit for an agreed period. The terms of the loan are normally that it is repayable on
demand or at the expiration date of the agreement.
7. OTHERS-:
Any loan that does not fall in any of the above facilities is considered as “other”. Blocked /
Segregated continuing credits (Pledge, Hypothecation or Overdraft) when re-scheduled by the
Banks for payments over a number of periods should also be reported against the head “other”.
THE BANK USE EIGHT ‘C’S RULE WHILE GIVING LOAN

1. Credit (must be god)
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2. Capacity(ability to pay)
3. Capital(money that going into business)
4. Collateral(assets that secure the loan)
5. Character(the person)
6. Commitment(ability and willingness to succeed)
Ch.6 LOAN AND

7. Cash flow(can it support business’ debt and expense)
8. Conditions(economic, finance anything that effect the business)
CREDIT FACILITY
Application for loan
Valuation of property
Credit memorandum
Credit committee approval
Offer letter
Debit authority and Promissory note
Property hault
Internal memo for disbursement
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6.1 LOAN AND CREDIT FACILITY
BCCB takes care of its customers by offering comprehensive loan packages at extremely
competitive and attractive rate of interest. Technology and service quality is combined at BCCB,
to offer its customers, comfortable, reliable and convenient schemes for loans in various categories.
6.1.1 PERSONAL LOAN SCHEME:-
At BCCB, we provide to our customers, the personal touch that makes banking easy with us. Your
needs drive us to give you the best possible service. BCCB personal loan is aimed at providing
you the first hand support via financial aid as and when required by you. This comes along with
minimum paper work and fasts processing.
BCCB offers various loans to its customers for housing, vehicle, business, education etc with
attractive, reasonable interest rates. Bank takes great pride in supporting endeavors of its customers
with the best service possible.
Who can Borrow Individuals
Repayment of personal Borrowings/ Business purpose/

Purpose
Medical Emergencies
Limit Minimum Rs.5.00 Lacs , Maximum Rs.100.00 Lacs
Immovable Property Such as Flat/ Row house/ Shop/

Security
Industrial Gala / Land along with House /NA Land
40% of Market Value ( As per valuation report

Margin
submitted by Banks panel Valued)
Rate of Interest 12.00% p.a.
Repayment Maximum 120 months
Processing Fees As per our service charges applicable
1. KYC documents of Borrowers and Guarantors.

Salaried: Salary Slips & Form 16 along with Salary A/c
Statement for last o months. Business: Copies of IT
Basic Documents returns for last 3 years along with Financial Statements
along with Business A/c statement for last one year.
Title Deeds of the property offered as security.
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6.1.2 HOUSING LOAN:-
Who can Borrow 2. Individuals (singly/Jointly)
4. Purchase of flat, construction of new houses

3. Purpose
bungalows on ownership basis
5. Limit 6. Max. Limit Rs.70.00 lacs
7. Security Mortgage of Residential premises to be

purchased
8. Margin 9. 25% of Agreement value or Architects Estimate
Upto Rs.25.00 lacs : 9.95 % p.a

Rate of Interest
Above Rs.25.00 lacs : 10.25% p.a
Repayment 180 Months to 240 months [Max]
Processing Fees As per our service charges applicable
KYC documents of Borrowers and Guarantors.

Salaried: Salary Slips & Form 16 along with
Salary A/c Statement for last o months.
Basic Documents Business: Copies of IT returns for last 3 years
along with Financial Statements along with
Business A/c statement for last one year.
6.1.3 BUSSINESS DEVELOPMENT LOAN:-
Individuals/Proprietary concerns/firms /companies /Limited

Liability Partnership
Who can As the scheme is only to cater to customers engaged in
Borrow business/profession/trade, people who are running their own
business/self-employed/SSI registered units/MSME,
Practicing Professionals/ Traders etc are eligible.
36
For overcoming expenses incurred by borrowers engaged in
business/profession/trade for acquisition of commercial
premises [acquired on Pagdi/Lease Basis], renovation &
repairs to be carried out at existing factory/commercial
Purpose premises from wherein business is conducted, Purchase of
Raw Material/ Machinery/Equipment’s, Payment to Sundry
Creditors, Payment of Unsecured loans[as reflected in
audited balance sheet], take-over of credit facilities availed
for business purpose from other banks /FI/NBFC’s.
Limit Maximum Rs.500.00 Lacs
Immovable Property such as flat/shop/Industrial Gala /land

along with House/Row house/Land along with factory
Security premises etc. Having all requisite permissions from
competent authorities owned by the proprietor /firm /partner
/Co’s/director in personal capacity
Margin 40% [market value of the security offered].
Up to 5 Years - 11.50% p.a

Rate of
Above 5 years to 7 Years - 11.50% p.a
Interest
Above 7 years to 10 Years - 11.50% p.a
Repayment Maximum 120 months
Processing
As per our service charges applicable
Fees
1. KYC documents of the Borrower & Guarantors ITR Returns

along with Financial statements for the last 3 financial years
Basic of the Borrower /Partners/Directors /Guarantors etc,
Documents Business account statement for the last two years Title
Deeds of the property offered as security Details of End use
of the funds.
37
6.1.4 PROFESSIONAL LOAN:-
Who 2. Doctors, Chartered Accountants,

can Cost Accountant,
Borrow Company Secretary, Architect.
3. For purchase of Premises for business / renovation of

Purpose premises, Machinery, New Software Technology, Working
Capital
4. Purchase of Property : 75% of (AV inclusive of Stamp duty

Limit & Registration) Purchase of Machinery/Renovation : 75%
of the Proforma Invoice /Quotation submitted
5. Immovable Property Such as Premises/ Gala created from

Security Loan amount and Machinery, Equipment etc to be
purchased
Margin 6. 25%
Rate Of
7. 9.95% p.a
Interest
Repayment 8. Maximum 120 Months
Processing 9. As per our service charges applicable

Fees

If Salaried: Salary Slips & Form 16 along with Salary A/c
Statement for last o months.
Basic Business: Copies of IT returns for last 3 years along with
Documents Financial Statements along with Business A/c statement for
last one year.
Copy of Professional Qualification Certificate.
38
6.1.5 COD:-
Who can Small Traders/Businessmen/Professionals/Self Employed

Borrow Persons/individuals
Purpose To meet working capital requirement
Limit Rs.50,000/- upto Rs.10,00,000/- [Maximum]
Security Pledge of Gold Jewellery with fineness of 22 ct. to 24 ct.
25 % of assessed value of Gold OR 20% of sales/income

Margin turnover whichever is lower, subject to maximum of
Rs.10.00 Lacs.
Rate of
10.50% p.a
Interest
Repayment Annual review
Processing
Fees

Basic
Business: Copies of IT returns for last 3 years along with
Documents
Financial Statements along with Business A/c statement for
last one year.
Commercial Activity Proof/ License/registration etc.
Note: Loan shall not be granted for to be used for speculative purpose.
6.1.6 ODCC Limit:-
Who can Proprietorship concern/Partnership firm/ Limited Liability

Borrow Partnership/Private Limited company
Purpose To meet working capital requirement
20 % of the sales\turnover \projected turnover OR 60% of

Limit the Value of the property offered as security whichever is
low.
39
Immovable property such as flat/shop/Industrial Gala /NA
Prime
Land /land along with House/Row house/Land along with
Security
factory premises etc.
Margin 40 %
Rate of
11.50% p.a
Interest
Repayment Annual review
Processing
Fees
KYC related documents of the Borrower /Partners/

Directors & Guarantors .
ITR along with Audited financial statements for last 3 years
Basic
of the firm as well as individual capacity of the
Documents
partners/directors for the last 3 years, along with Business
account statement for last two years.
6.1.7 Cash Credit Limit:-
Who can Individuals/Proprietary/Partnership firms/Private Limited

Borrow Company/LLP.
Purpose Purchase of Commercial Premises
Limit 75% of (AV+ Stamp duty & Registration )
Immovable Property which is to be created from loan

Security
amount.
Margin 25%
Rate of
10.50% p.a
Interest
Maximum 84 Months (Can be relaxed upto 120 month on

Repayment
case to case basis)
Processing
Fees
40
Basic
Documents
last one year.
6.1.8 Pledge Limit
Who can
Proprietary concerns/firms/companies /LLP
Borrow
Purpose To meet working capital requirements
20 % of the Sales\Account turnover /Projected Sales

Limit
Turnover
Pledge of stock/vehicles with the bank

Security Noting lien of the bank on register maintained by the
Godown
10% to 15% of Invoices.

Margin [Note: Loan amount will be disbursed for purchase of
vehicles/stock after getting margin money in the account. ]
Rate of
12.00% p.a.
Interest
Repayment Annual Review
Processing
Fees
KYC documents of borrower & guarantors.

ITR Returns along with Financial statements for the last 3
Basic financial years of the Borrower /Partners/Directors
Documents /Guarantors ,Business account statement for the last 2
years
41
The expenses related to custodial charges such as godown
rent, salary of guard, installment of CCTV, etc. shall be
borne by the borrower.
6.1.9 BOLN Limit
Who can Permanent Salaried Employee, Engaged in Business, Self

Borrow Employed Professionals.
To Meet personal expenses such as Medical/Travel/

Purpose Marriage/ Purchase of Hi tech Electronic Gadgets,
Household appliances/Furniture
Minimum Loan to be sanctioned ----Above Rs.3 Lacs

Limit
Maximum loan to sanctioned --------Upto Rs.5.00 Lacs
Security such as Pledge of our banks Term Deposits, NSC

Collateral , Assignment of Surrender Value of LIC policies , Simple
Security Deposit of Title Deeds of owned immovable property with
noting of charge with competent authorities.
Margin No Margin
Rate of
12.50% p.a
Interest
Repayment Max.120 Months
Processing
Fees

For Salaried Employee :
Salary slip for the last 3 months along with bank statement
wherein Salary is credited for last one year.
Basic
Latest Form No.16
Documents
For Business/Self Employed Professionals
IT Returns along with Financial statements for the last 3
Yrs
Statement of business account for last one year.
6.1.10 Machinery Loan
42
Who can
Individual/ Company/Firm
Borrow
Purpose Commercial/ Second-hand Machinery
75 % of the Proforma Invoice /Quotation

In case of Second Hand Machinery---50% of the
Limit
Agreement between the vendors or 50% of the Valuation
whichever is lower.
Security Hypothecation of Machinery
* 25%
Margin
* 50%of Valuation (in case of second hand Machinery)
Repayment * 60 months [Maximum :84 months]
Rate of
11.50 % p.a
Interest
Processing
Fees

Income proof of the Borrower justifying repayment
capacity. In case of Business ITR along with Financial
Basic Statements for the last 3 years, Business account statement
Documents for the last one year.
SSI Certificate
Quotation from authorized dealer duly signed by both the
parties.
For all the SSI Registered Units , wherein their investment in Plant & Machinery is up to Rs.500.00
Lacs , for the loans availed for purchase of new machinery up to Rs.100.00 Lacs, Subsidy under
CLCSS ( Credit linked Capita Subsidy Scheme) of Central Gov. of India is available. Under said
subsidy scheme the borrower is eligible for subsidy up to 15% of total cost of machinery to be
purchased, maximum to the tune of Rs.15.00 Lacs once in lifetime of unit. SSI certification as well
as AADHAR of the Proprietor /Partners/Directors is compulsory for availing the benefit of the
said scheme.
6.1.11 Purchase Of Shop/Industrial gala/ commercial pre,icies
43
Who can Individuals/Proprietary/Partnership firms/Private Limited
Borrow Company/LLP.
Purpose Purchase of Commercial Premises
Limit 75% of (AV+ Stamp duty & Registration )
Immovable Property which is to be created from loan

Security
amount.
Margin 25%
Rate of
10.50% p.a
Interest
Maximum 84 Months (Can be relaxed upto 120 month on

Repayment
case to case basis)
Processing
Fees

Basic
Documents
last one year.
6.1.12 Lease Rent Discounting (LRD):
Who can Individuals/Proprietorship concern/Partnership firm/ Limited

Borrow Liability Partnership/Private Limited company
To meet business needs and/or other genuine personal needs

of the owners, [but not for speculative purpose]. This advance
Purpose
is against lease rent receivables from Shopping /Office
Complexes.
Limit Based on the Net Rental income receivable.
Immovable Property having all requisite permissions from

Security
competent authorities
44
15%to 20% of Net Rent Receivables (Less TDS) and
Margin
25%of Market Value of Immovable Property
Rate of IPRE/CRE : 11.00% p.a

Interest Other than IPRE/CRE : 9.95% p.a.
Maximum120 months or Residual Months of the Lease

Repayment
Agreement whichever is lower.
Processing
Fees
KYC documents of borrower and guarantor

ITR along with Audited financial statements for last 3 years
of the Borrower Firm/Co as well as
Basic
Proprietor/Partners/Directors for the last 3 years, along with
Documents
business account statement for the last 2 years.
Original Title Deeds of the property offered as security.
Copy of Registered Leave & License [Rental] Agreements.
Note: Tripartiate Agreement between Lessor, Lessee and Bank needs to execute. Escrow A/c to
be opened for deposit of rental income.
6.1.13 Repairs & Renovation:
Who can
Individuals (Shareholders)
Borrow
Purpose Purchase of Furniture
Limit Max. Limit Rs.2.00 lacs
Security Hypothecation of furniture to be purchased
Margin 75 % of Quotation
Rate of
13.50 % p.a
Interest
Repayment Max 50 months
Processing
Fees
45
Basic
Documents
last one year.
Quotation of furniture to be purchased / constructed.
6.1.14 EDUCATION LOAN
Who can
Students Along with Either of the Parent as Co-borrower.
Borrow
Pursuing Higher Education within India/ Overseas. Students

Purpose
should have secured admission for the Courses opted for
For Studies within India ----Maximum upto Rs. 10.00 lacs

For Studies Out of India -----Maximum upto Rs.20.00 Lacs
Limit
[**Request for Higher Loan amount can be considered on
Case to Case Basis. ]
Equitable/Registered Mortgage of Immovable property such

Security as Flat /Shop/Industrial Gala /Land along with House
Pledge of Bank’s Term Deposits
25% of Education expenses or 25% of property whichever

Margin is lower
In case of Term Deposits the margin shall be 15%.
Rate of Up to Rs.5 Lacs ----- 9.00% p.a

Interest Above Rs.5 Lacs----10.00% p.a
60 months after completion of Course undertaken for which

Repayment loan availed plus 6 months or Student securing Job
whichever is Earlier.
Processing
Fees

Basic
Income proof of the co-borrower/ family justifying
Documents
repayment capacity
46
Statement for last 6 months.
.Business: Copies of IT returns for last 3 years along with
last one year.
Earlier Educational Qualification certificates of the student.
Offer/ acceptance letter of the College/ University where
admission is taken.
Title Deeds of the property offered as Security
Central Gov. Scheme to provide Interest Subsidy [CSIS] for loans availed by Students belonging
to Economically Weaker Sector for pursuing Education only in India is available.
Central Govt Scheme [PADHO PARDESH], to Provide Interest Subsidy to Students belonging to
communities declared as minority communities, for pursuing Masters and PHd Level Courses
overseas is available.
6.1.15 Vehicle Loan (for personal Use)

Who can Individuals /Proprietary /Partnership Firms/LLP/ Pvt.
Borrow Limited Companies
For Personal Use of Individual Borrower /Partners/

Purpose
Director of the Company.
Limit 75% of the Total On road Cost
Security Hypothecation of vehicle
Margin 25%
Rate Of Up to 3 Years - 8.50 % p.a

Interest Above 3 Years - 8.75 % p.a
60 Months
Repayment [In case of Hi-End Vehicles 84 Months Repayment Period
can be considered].
Processing
No Processing Fees
Fees

Basic
Documents
47
Financial Statements along with Business A/c statement
for last one year.
Proforma Invoice/ Quotation Only from Authorized
Dealer of the Vehicle to be purchased.
6.1.16 Vehicle Loan (for Commercial Use)

Who can Individuals/Proprietors /Partnership Firms/LLP/
Borrow Pvt.Limited Companies
Purpose For Business Purpose
Limit 75%of the Total On road Cost
Security Hypothecation of vehicle
Margin 25%
Rateof
9.95% p.a
Interest
36Months to 60 Months
Repayment [In case of Heavy Vehicles Repayment Period up to 84
Months Shall be Considered].
Processing
Aspen our service charges applicable
Fees
Income proof of the Borrower justifying repayment
capacity. In case of Business ITR along with Financial
Basic Statements for the last 3 years, Business account statement
Documents for the last one year.
Performa Invoice/ Quotation Only from Authorized
Dealer of the Vehicle to be purchased.
Copies of confirmed travel undertakings in hand
48
Ch.7
CIBIL SCORE
49
7.1 What is CIBIL SCORE?
A CIBIL Score is an indicator of an individual’s credit worthiness. It impacts the individual’s

ability to borrow
A credit score is a numerical expression based on a level analysis of a person's credit files, to
represent the creditworthiness of an individual. A credit score is primarily based on a credit
report information typically sourced from credit bureaus.
Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk
posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit
scores to determine who qualifies for a loan, at what interest rate, and what credit limits. Lenders
also use credit scores to determine which customers are likely to bring in the most revenue. The
use of credit or identity scoring prior to authorizing access or granting credit is an implementation
of a trusted system.
Credit scoring is not limited to banks. Other organizations, such as mobile phone companies,
insurance companies, landlords, and government departments employ the same techniques. Digital
finance companies such as online lenders also use alternative data sources to calculate the
creditworthiness of borrowers. Credit scoring also has much overlap with data mining, which uses
many similar techniques. These techniques combine thousands of factors but are similar or
identical.
In India, there are four credit information companies licensed by Reserve Bank of India. The
Credit Information Bureau (India) Limited (CIBIL) has functioned as a Credit Information
Company from January 2001.Subsequently, in 2010, Experian, Equifax and Highmark were given
licenses by Reserve Bank of India to operate as Credit Information Companies in India. CIBIL is
by far the oldest and the most popular, having its origins in the year 2000. Experian has been in
existence since 2006 and achieved a license of operation in 2010. Highmark and Equifax also
received operating licenses in 2010.
Although all the four credit information companies have developed their individual credit scores,
the most popular is CIBIL credit score. The CIBIL credit score is a three-digit number that
represents a summary of individuals' credit history and credit rating. This score ranges from 300
to 900, with 900 being the best score. Individuals with no credit history will have a score of -1. If
the credit history is less than six months, the score will be 0. CIBIL credit score takes time to build
up and usually it takes between 18 and 36 months or more of credit usage to obtain a satisfactory
credit score.
50
7.2 What is consider a good credit score? How is my score computed?
The credit score ranges from 300 to 900. The closer you are to 900, the more confidence the credit
institution will have in your ability to repay the loan and hence, the better the chances of your
application getting approved. Anything above 750 is considered a good credit score. All banks
/NBFCs usually look at the credit score as one of the many checks they do before advancing a
loan.
7.2.1 What is a good credit score?

A good credit score ranges from 750-900. If you have a score of 750 and above, banks and other
NBFC’s consider you to be credit healthy. But if you have a score less than 750, banks feel it is as
a risk to provide you a loan or credit card. Banks and other NBFC’s are comfortable with approving
loans to customers who have a score of 750 and above.
There are 4 credit bureaus in India which are authorized by RBI. You can choose to get your credit
score online from the websites of any of the bureaus. There are also a few reputed credit
management companies which provide help you understand your credit health and provide online
analysis.
7.2.2 What are the benefits of having a good credit score?

With a good credit score banks provide you with a lot of benefits, such as low interest rate, higher
loan amount, quicker loan approval process and higher repayment period. To enjoy all these
benefits, the eligibility criteria is having a credit score of 750 and above. With a good credit score
you can enjoy all the benefits. In case you have a low credit score, all you have to is to improve
your credit score by following a few steps.
Making payments for your loan dues on time
Maintaining a balance between secured and unsecured loans.
Reducing the number of loans you borrow in a particular year.
Ensuring your debt-to-income ratio is low.
These are a few easy steps which help you to improve you credit score. This will help you to
improve your credit history. The better your credit history, the better your credit score will be.
51
7.2.3 How is my credit score calculated?
Credit score is calculated on a number of factors, especially on your payment history. Your
repayment track record contributes to over 35% of weightage while computing our credit score. In
addition, your credit score is also calculated based on:
Your total available credit balance.

Balance between your secured and unsecured loans.
Number of loans and credit cards you have.
Credit utilization.
Plus a whole host of other factors.
A credit scoring algorithm is then used by credit bureaus to calculate your credit score. Your credit
score not only helps lenders assess your loan eligibility, it also helps them understand if you are
worthy of credit. The higher your credit score, the higher are your chances to get your loan
approved. So it’s always advisable to check your credit score before you apply for a Personal loan.
What is a credit rating?

A credit rating - also known as a credit score - is a 3 digit number between 300-900 that gives
potential lenders a snapshot of the customer's credit health. Your score reflects your ability to
fulfill your financial obligations within the formal banking system. It is calculated on the basis of
several factors including, most importantly, your repayment history.
Who issues the rating, and how is it calculated?

A credit rating or score is issued by credit rating agencies. There are three such agencies
52
operating in India – CIBIL™, Equifax, Experian and CRIF High Mark. Your credit score is
arrived at based on your credit track record. It does not take into account your assets or
investments or any other noncredit-related financial transactions. The credit agencies have details
on every credit transaction you have entered into with the formal banking system, including your
monthly EMI history, every loan/credit card application you have made, and information on
whether it has been approved or rejected. The agencies also receive information from lenders on
any late or missed payments, and incomplete/partial payments. Your credit score is calculated
based on all these factors, among many others.
Why is my credit rating important?
There are several situations where your credit score plays a crucial role:
1. When applying for a loan - Potential lenders ask credit rating agencies for your credit score
and/or your credit report to evaluate if you are a high-risk customer. If you have a low score,
they might be unwilling to lend to you as they are unsure about your ability to make full and
timely repayments. If you have a good score, lenders will view you as a safe, low-risk customer
and automatically approve of your loan application. In addition, you might be offered better
terms (lower interest rates) or a longer repayment period.
2. When applying for a credit card – If you have a good score, you will be eligible for better
interest terms, higher credit limits, certain kinds of awards or waiving of some fees.
3. When applying for a job – Potential employers can ask for your credit score to judge if you
demonstrate a consistent pattern of financial responsibility. This is especially important in
sensitive jobs in the financial sector or in compliance roles.
4. When planning to rent – In advanced credit economies, like the U.S., landlords can request
the credit agencies for your credit score to judge if you can be trusted to meet your rental
payments. This might be the case in future in India as well.
5. What is a good credit score?

In general, a credit score above 750 enables you to be loan-eligible. Many loans applications are
automatically approved when the customer has a score in this range.
Any score below 750 runs the risk of loan rejection. Even if you are approved with a low score,
you might not be offered competitive interest rates. It is better to ensure that you have a good
score before you apply for a loan.
6. How do I obtain my credit score?

You can apply online to request your credit score. You will need to provide the requisite ID and
address proof documentation and make the payment. After verification, you will receive your
credit report which contains your credit score.
Alternatively,
7. What is a bad credit score?
A bad credit score is generally one that is less than 650. A credit score is a three digit number in
the range of 300-900 that is issued by a credit rating agency. It gives lenders a snapshot idea of
your credit-worthiness. A score below 750 often disqualifies you from being granted a loan as it
implies that you have bad credit – that is, you do not demonstrate financially responsible
53
behavior. On the other hand, a good credit score (above 750) signifies that you have a good
history of fulfilling your financial obligations. A good score makes you an attractive customer to
potential lenders.
Your credit score is calculated after taking into account every detail of your credit history. Every
loan-related transaction is recorded by the financial system and sent to the credit rating agencies.
(In India, the three credit rating agencies in operation are CIBIL™, Equifax, Experian and CRIF
High Mark). Your credit score reflects your individual payment history with regard to all your
loans, both past and present, and across all lending institutions. A low score implies that you
have a bad credit record, most often as a result of a poor repayment history
7.3 Reasons for a low credit score

These are some of the common reasons for a low credit score.
1. Delayed repayments: Many people do not realize that even one or two delayed credit card
payments can affect your credit score and cause it to drop. The more the number of delayed
payments, the greater the negative impact on your credit history and credit score.
2. Missed payments: Sometimes due to an unforeseen emergency, you may not be in a position to
make your payments. For example, you might have unexpected medical expenses for a hospital
stay, or you might lose your job, making it difficult for you to fulfill all your loan obligations. If
you miss any payments, it will be recorded in your credit history and lead to a drop in your score.
3. Lack of credit history: If you have not borrowed for a loan or had a credit card account, you will
not have much of a credit history. This too can lead to a low credit score.
4. Administrative error: Occasionally, there may be an administrative error that results in wrong
information being recorded on your credit report. Sometimes, this might be the result of fraudulent
activity as well. For no fault of yours, these errors could lead to a lower credit score, signaling to
future lenders that you have bad credit.
In general, it is advisable to have a credit score of 750 or above in order to be in good credit
standing with banks and other lenders. Anything under 750 is viewed negatively by lenders who
are reluctant to approve your loan. It is important to improve your score to at least 750 so that your
loan application is not automatically rejected during the initial application process
How to improve CIBIL score?
CIBIL™ is one of the four authorized credit bureaus in India which provide a credit score, the
others being Equifax, Experian and CRIF High Mark.
There are several ways in which you can improve your credit score. Depending on how good or
bad your score is, it can take between 4-12 months to improve your score in order to become loan
eligible. Here are some of the things you can do to improve your score:
Obtain your credit report immediately: When you read your report, you may find errors that
are unnecessarily dragging down your score. For example, even after you have fully paid your loan
with interest, it might be shown as outstanding due to a reporting or administrative error. If there
54
are any errors in your credit report you can file a dispute to correct it. This will result in an
immediate increase in your score.
Similarly, there may be instances of fraud that are bringing down your score for no fault of yours.
For instance, you might notice a loan in your name that you have not taken. It is important to report
any instance of suspicious activity and get it rectified at once. This will also have an immediate
effect on your score.
Make sure you pay your bills on time: This is the single most important thing you can do
to improve your score. If you make all your loan and credit card repayments on time and in full, it
will have a significant positive impact on your score. Even a single missed or late payment affects
your score adversely. Your payment record forms up to one third of your credit score, so if you
make every payment on time, you will quickly improve your score. So start making your payments
in time right away and see the resulting improvement in your score.
Ensure you limit your spending to 50% of your card limit: Make sure you don’t exceed more than
50% of your credit card limit at all times. For instance if your limit is Rs 1 lakh a month, limit your
monthly spending to Rs. 50,000 or less. This will have a positive impact on your credit score.
When you consistently spend more than 50% of your limit, it signifies a lack of spending
discipline, and will have a negative impact on your score.
Do not apply for multiple loans or credit cards at the same time. When you apply to multiple
lenders for loans or credit cards within a short period of time, it signifies that you are ‘hungry’ for
credit and need to apply to various sources simultaneously. Lenders become nervous about your
ability to repay and might reject your application. Each rejection further decreases your score.
You can do all these things to improve your credit score on your own. If you do not have the time
or sufficient knowledge to do it on your own.
Why you need to check your Credit Report

An example to explain why you need to check your credit report.
E.g.: - Sourav and Ankit are watching the New York Marathon on TV and decide that they want
to run a marathon. Sourav immediately goes online and signs up for the Mumbai marathon taking
place in two months’ time. While running the race, his initial excitement gives way to exhaustion,
and he realizes he is physically unfit for such a demanding race. He drops out before reaching the
halfway point.
Ankit approaches the race decision differently. He visits the doctor for a complete check-up where
he finds out, to his surprise, that he has low iron levels. Newly aware of this fitness issue, he
decides against signing up for this year’s race. He takes medication, trains regularly and registers
for next year’s marathon. Who do you think maximized his chance of success?
Clearly, Ankit! It is the same logic that applies to your credit health and loan applications. If you
are unaware of your credit score or credit health problems and apply for a loan, you could perform
badly during the approval process. The problem areas mentioned in your report could cause lenders
to reject your application.
55
The good news is that, like Ankit, you can make sure that you perform well during the loan
approval ‘race’ by checking your credit report periodically. If you know what is in your credit
report, it is like going for an interview and knowing what questions will be asked. You can prepare
beforehand to ace the loan ‘interview’! To increase your chances of being approved for a loan, you
should
• Check your report annually so that you remain updated on your score
• Identify issues in your credit health (insufficient credit history, missed payments, reporting errors
etc.)
• Focus on these areas to improve your sco
56
Ch.8 LEARNING
57
8.1Major Learnings
The work which I was given in the branch of BCCB was mainly customer service, where in I had
to interact with customers on daily bases. My role was to transfer cheques inward and outward,
help in filling up forms of saving account, current account and NRI account. Most of my work
was to RTGS, NEFT, transfer cheques outward return and inward checques. I even us to print
passbooks and FD certificates. It was bit difficult at first as in I didn’t had any answers to the
customers query’s and I had to direct them to my colleague, but eventually in time got to know
how it works, how to check balance of customers in the banking software and also the due date
of their FD getting mature, checques which were pending or has been cleared.
Luckily I had an opportunity to sit on casher’s desk where in it was instances pressure, as in had
to deal with actual cash inward and outward, the most difficult part of this work was the
balancing of the inward cash and outward cash at the end of the day. I even got a chance to go
out with our branch manager to evaluate the gala for loan purpose and I found out that how, and
on what bases property was evaluated. I also use to go out for marketing of our BCCB bank as it
was a new branch opened in that area, and I learned how to pull customers, even when they had
bank accounts in other banks, by offering exacting offers of our bank which customers liked
wand were ready to infuse there money or open saving accounts and also take loans, which was
the main business of any bank to give more loans and grow there numbers of customers for their
own growth.
I found out that the loan customers where mainly business, builders, education loan and vehicle
loan, this customers didn’t had CD accounts so they had to go through a long process of opening
an account first, and it was compulsory for business people as it helped them in the long run and
had many benefits, also found out that was difficult for customers to fill up the forms of loan as it
was lengthy and unnecessary things included in it, so the customers use too many mistakes while
they were filling up the form and its using of any so they had to take an new form which made
them frustrated.
8.2 Suggestions
Nothing in the world is build up as perfect. Certain flaws, weaknesses are possessed by everything,
so does banking institutes. In similar sense, BCCB, in its way of performing and dealing with the
58
customers, consists of some drawbacks. As per this, certain General as well as Specific
recommendation are provided to the institute, which are as follows:
A. General Suggestions
 BCCB need to come up with easy ways to fill up the forms and remove the unnecessary
details from the form which will make it much easier.
 Upgrade in their software, as in the software which is in use is outdated and has many bugs,
and also slows down the process and coz of which poor quality of services is proved.
 The banks should come up with wide variety of products and services and focus on service
proliferation
 Proficiency in interdepartmental communication should be given more priority
 The customer portfolio if diversified, a wide array of customers can be attracted plus the
risk factor can be minimized
 The different schemes that the bank comes up with needs to be marketed in a proper manner
 The internal customers of the bank, the employees need to be motivated and appraised in
a handsome manner
 The physical facilities of the bank can be improved e.g. spacious area, couches and chairs
for the customers to sit and relax
B. Specific Suggestions
a. Better customer service:

Stable, healthy growth is built on the profitability of the customer, not on their raw no, of
loyalty. The two researches that were carried out had some part of service department`s issue
involved.
b. Employee Lounge:
A banker’s job is very monotonous and tedious process. It demands utmost attention and
makes them exhausted, if there was some kind of recreation area for the employees where they
59
could go and relax for a while, it would be much helpful. The employee recreation lounge would
act as a refresher for the employees and recharge them for the next difficult shift.
c. Specialized service for “Special” customers:

The special customers with various accounts in the bank, taking occasional loans, owing
the locker facilities should be properly treated by the bank or whenever the current account holder
wants the bundled notes they should manage to give them. They are the sources of a lot of earnings
for the banks. Therefore, the bank can devise a specialized service whereby, special clients can be
offered loan as a subsidized rate or extended credit, gift vouchers etc.
d. CONTRIBUTION TO HOST ORGANIZATION

The contribution to the host organization “Bassine Catholic Co-operative Bank” from our end was
quite useful to both the parties, as the organization had add new scheme, so our views, suggestions,
Idea’s and feedback from the market would add value post launch and secondly at our end we had
a hands-on, of experiential learning of corporate culture, the major contribution towards the
organization are listed below:
1. To create the awareness about the new schemes and products to the customers coming to
Customer Service Department.
2. Customer expectations to product related was given in terms of feedback that how customer
reacts and what are actual customer requirements.
3. We have to solve the customer problem immediately and also update their product status.
4. Our Approach in the organization was to learn and pay off back to what we were made
responsible for with a valuable output.
60
CONCLUSION
The study concludes that Cooperative Bank, which was established for mainly for the
service of rural sector, still is not on the line to its goal. It is lacking at various elements, particularly
at the branch levels, which reveals the edge of other public and private sector banks over the
Cooperative bank, the lines at which the bank is lacking behind. Indiscipline and lack of
commitment in these banks make people’s trust in the cooperative sector a casualty.
Some of the co-operative banks are quite forward looking and have developed sufficient
core competencies to challenge state and private sector banks. But there is shortage of staff in this
bank and the traditional manual banking which is affecting the business and customer services.
People are still unaware of the services provided by the Cooperative Banks due to lack of
advertisement.
There is a need to analyze and pick up early warning signals. A change is needed today in
the cooperative banks which is built on confidence in human capital - the most important of all
resources - in commitment, creativity and innovation brought about by proactive management,
membership and employees. The ability to capture knowledge and wisdom gives cooperative
banks their competitive advantage. A prerequisite is that participants from all parts of a cooperative
organization know and understand its purpose, core values and visions.
In this way, by keeping in mind the certain shortcomings, appropriate measures to
overcome them should be adopted. So that the real purpose of the Cooperative bank must be
realized with a competitive advantage and the gap between the customer perception of the
Cooperative Bank and the other private and public sector bank, can be reduced.
61
BIBLIOGRAPHY
 Annual report of the Bassine Catholic cooperative bank.
 Documents provided by bank.
 Various circulars issue by the bank.
 http://www.bccb.co.in/#
 www.wikipedia.com
 www.docstoc.com
 www.cooperativebank.co.uk
 www.cab.org.in> knowledge bank
 www.citeman.com
 www.ehow.com
 www.nabard.com
 www.rbi.org.in
62

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TO UNDERSTAND WORKING PROCESSES OF LOAN

AND CIBIL SCORE

RUNAL LELEAT GONSALVES

In partial fulfillment for the award of the degree

POST GRADUATE DIPLOMA IN MANAGEMENT

INSTITUTE FOR FUTURE EDUCATION, ENTREPRENEURSHIP AND

Off Karla Phata, Ekveera Devi Gramasthan Road, Gut No-178,Village-Karla,

AND TECHNIQUES OF BHARAT BANK" is the bonafide work of "Runal Leleat

Gonsalves" who carried out the project work under my supervision.

Prof. Suresh Kadam Wing Commander Sudhir Salunkhe

ACADEMIC SUPERVISOR DEAN SIR

1 Bonafide Certificate - Company Supervisor 2

2 Bonafide Certificate – Academic Supervisor 3

7 List of Tables /Graphs/Diagrams 8

1. Industry Introduction 9-16

2. Co-operative Bank 17-22

3. Goals of Internship 23-24

4. The Bassine Catholic Co-operative Bank 25-29

6. Loans and Credit Facility 34-48

1.2 Standard Activates Of Bank 9-16

2.2 Co-operative Banks in India 19-22

4.1 History/ Mission & Vision 25-29

6. Loans and Credit Facility

6.1 Loan and Credit Facilities of BCCB 34-48

7.1 What is CIBIL score? 49-50

7.3 Reasons for a low credit score 54-56

7.1 Major Learning 57-58

7.2 Suggestion 58-60

1.1 WHAT IS BANKING?

1.2 STANDARD ACTIVITIES OF BANK

RISK AND CAPITAL

ECONOMIC FUNCTIONS OF BANKS

The economic functions of banks include:

ORGANISED BANKS UNORGANISED BANKS

STATE BANK GROUP

STATE COOPERATIVE BANK

CENTERAL COOPERATIVE BANK

PRIMARY AGRICULTURE CREDIT

2.2 Cooperative banks in India :

Cooperative banks in India finance urban areas under:

Some facts about Cooperative banks in India

There are two main categories of the co-operative banks.

The cooperation banking structure is divided into following five categories

3. Primary agriculture credit societies

5. State cooperative bank

6. Land development bank

Primary urban cooperative bank:

Primary agriculture credit societies:

District central cooperation bank:

Land development bank:

MR. ONIL JOHN ALMEIDA CHAIRMAN

MR.YURI DOMNIC VICE-CHAIRMAN

MR. BRIAN BARTHOL NORONHA DIRECTOR

MR. BENOLD PATRICK DIAS DIRECTOR

MR. SUNIL MARSHAL D’MELLO DIRECTOR

MR. RAYAN INGNATIUS FERNANDES DIRECTOR

MR. WILSON DOMNIC MACHADO DIRECTOR

MR. DOMNIC SEBESTIAN D’MELLO DIRECTOR

MRS. CLERA PIUS ALMEIDA DIRECTOR

MRS. BRIJDINA COUTINHO FUNCTIONAL DIRECTOR (CEO)

MR. FRANCIS J. DCOSTA BANKING EXPERT

MR. CHATUIRA RAM ASST. MANAGER

ADV. ALBERT P. DABRE BANKING EXPERT