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Deposits and Advances in ALLAHABAD Bank, Tumkur

INTRODUCTION OF BANK AND BANKING


Bank and Banking
Bank: The word BANK is derived from the Italian word BANCO and the Latin word BANCUS and the French word BANQUE which means a BENCH .A Bank is a financial institute which deals with a money and credit. It accepts deposits from the public and distribute loan to needy people.

Banking: The Regulation Act of 1949 section 5(b) defines Banking has Accepting for the purpose of lending or Investment of deposits from the public repayable on demand or otherwise and with drawable by cheques, drafts, orders or otherwise

INTRODUCTION BANKING IN INDIA


Introduction
Banking system occupies an important place in a nations economy. Bank is an indispensable institution in a modern society and forms the core of the money market of the advances countries.

The Indian Money Market however is characterized by the existence of both the unorganized and the organized credit agencies. Which meet the credit needs of the various sectors of the company.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

The moneylenders and indigenous banker constitute the unorganized money market. The organized sectors of the money market consist of the Reserve Bank Commercial & Co operative Banks.

The organized and unorganized sector of the money market is the completely isolated form each other there are certain points of contract between them. With the extension of banking facilities by the Commercial & co operative banks in the countryside. Credit needs of various Sectors of the economy are know being increasingly met by institutional agencies.

In the organized money market commercial banks have acquired a significant place as a result of their growth in terms of branch network of

Deposits & Advances. However, the commercial banking system has been till recently mainly Urban oriented.

Commercial Banking in the public sector


A significant feature of the present day commercial banking in India is the co-existence of both the private sector & the state and public sector in banking the growth of the public sector in banking.

The banking took place in two stages.

First in 1995 when the Imperial Bank of India was converted into the State Bank of India and subsequently banks wear made subsidiary bank of State bank. Second stage was the Nationalization of 14 major commercial banks on 19th July 1969.
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Deposits and Advances in ALLAHABAD Bank, Tumkur

The banks that were nationalized are as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. The Central Bank of India The Bank of Indian The Punjab National Bank. The Bank of Baroda The United Commercial Bank Canara Bank United Bank of India Dena Bank Syndicate Bank The Union Bank of India. Allahabad Bank The Indian Bank The Bank of Maharasthra The Indian O

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verseas Bank The banks, which were nationalized in

1980, are as follows:


1. Andhra Bank 2. Corporation Bank. 3. New Bank of India. 4. Oriental Bank of Commerce. 5. Punjab & Sind Bank. 6. Vijaya Bank. These twenty banks constitute the strong public sector in India banking system.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

The structure of Indian Commercial Banks:


The outstanding landmark in the history of Indian Commercial Banking the enactment of legislation in 1949 called the banking regulation act. The legislation was enacted with a view to restructure commercial banks in India.

For the first time the act introduced the licensing system for banking business. It had laid down rules & regulations for the opening of banks then branches &minimum capital required for opening a bank etc. The banking regulation act is considered as a well though out and compensate price of legislation designed to safeguard the interest of depositors & the development of banking industry on a systematic line.

The Indian commercial Banks were classified into two types at the time of independence. They were scheduled banks and non- scheduled banks. As in 1950 there were 430 commercial banks in India. By 1969 the number of commercial banks was reduced to 85 by means of mergers & amalgamations. Owning to liberal policy followed by the government for the setting up regional rural banks. The number of Indian commercial banks increased to 273 on march 1990.

Scheduled Banks:
According to section 42(6) commercial banks are classified into two categories: 1. Scheduled banks. 2. Non-scheduled banks.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

This classification was introduced as early as 1935 with the object to establish relationship between the commercial banks and the reserve banks. At the time of establishment of the RBI in 1953 there were a large number of commercial banks big & small with varying degrees of financial & economic soundness.

The act empowered the reserve bank to include only those banks in the second schedule to the act, which fulfilled the prescribed conditions. A scheduled bank means a bank included in the second to the RBI act of 1934. The reserve bank is empowered to include in the schedule a bank, which carries on business of banking in India & which satisfies the following conditions laid down in section 42(6).

1. It must have a paid-up capital & reserves of an aggregate value of not


less than Rs.5,00,000. 2. It must satisfy the reserve bank that its affairs are not being conducted in a manner detrimental to the interests of its depositors 3. It must be: a. A state co operative bank, or b. A company as defined in the companies act of 1956 or c. An institution notified by the central government in this behalf or d. Co operation or a company incorporated by or under any law in Force in any place outside India. With the enforcement of Banking Laws (application to co-operative societies) Act of 1965. The state co-operative banks have also been made eligible for inclusion in the second schedule with effect from 1st March 1966.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

The scheduled banks are thus divided into 1. Scheduled Commercial Banks, including a) Indian Scheduled Commercial Banks b) Foreign Scheduled Commercial Banks 2. Scheduled State Co-operative Banks

The ALLAHABAD BANK is a Scheduled Commercial Banks.

Functions of Modern Commercial Banks:


A. Accepting deposits from the public: Accepting various types of deposits is an important function of the commercial bank those who have cash balances went to keep them in safe place i.e., deposit the same in bank. They as well as provide a convenient method of transferring funds through cheques.

The bank accepts 4 types of deposits:

a) b) c) d)

Fixed deposits. Current deposits. Savings deposits. Cumulative or Recurring deposits.

A fixed deposit is one where a customer keeps a certain amount of money in a bank for specific period. It carries higher rates of interest than that allowed to savings deposits. Longer the period higher the interest rates &Vice versa.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Savings deposits are those deposits on which the bank pays a certain rate of interest to the depositors subject to certain conditions. A person can open

the account with a small amount and go on depositing any amount. The customers are expected to maintain a minimum balance in the account. There are certain restrictions with regarding to withdrawals. The banks fix the minimum number of withdrawals in a year. Withdrawals can be made either by withdrawals slips or cheques have to maintain a balance at higher amounts savings accounts are intended to those who have small incomes. Current deposits are those deposits, which can be withdrawn at any time by means of cheques. The bank does not pay interest on current account deposits. A customer must maintain a minimum balance. The current account holders have to pay service changes for operating the account. There are no restrictions on withdrawals. Generally traders & businessman keep their money in their account. They can draw over & above their account balance, this is called over draft.

B. Making deposits, loans and advances:


Bank receives deposits with a view to lend. It is one of the most important functions of banks. Direct loans & advances are given to all types of persons against the security of moveable properties. The different types of the loans given by the banks are as follows: 1. Direct loans. 2. Cash credits. 3. Bills discounted. 4. Over drafts.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Apart from these two major functions commercial banks perform other useful functions to society. C. Agency services: Customers can arrange for divided to be sent to their banks & paid into their accounts. Orders for the purchase or sale of stock exchange securities are executed through the banks. Banks will make applications on behalf of their customers for all allotment arising from new capital issues. Pay calls as they of all due. Obtain the share certificates or documents of title.

On certain agreed terms the banks will allow their hands to appear approved prospectors or other documents as bankers for the issue of new capital.

Banks undertake payment of Subscriptions. Insurance Premiums Rent etc.

On behalf of customer the banks will collecting cheques, bills, salaries, pensions, dividends, interests, etc. belonging to customers are credited to the respective accounts of the customers.

It also act as respective of customers to other banks and financial corporations.

They aim to provide a complete change of trustee executer or advisor services for small change.

Most banks will undertake on behalf of their customers the preparation of income tax return claims for recovery of overpaid tax.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

D. General utility services:


It includes the issue of credit instruments like letter of credit & travelers

cheques. The acceptance of bills of exchange. The safe custody of valuable and documents. The transactions of foreign exchange business. Acting as a reference as to respectability & financial standing of customer & providing specialized advisory services to customers.

E. Overseas Trading services:

Recognition of overseas trade has led modern banks to setup

branches specializing in the finance of foreign trade & some banks in some countries have taken interest in export houses factoring organizations. Banks provide means for settlement of debts between traders

both at home & abroad for the goods they buy & sell.

They provide credit & enable the company to release the capital.

Which would otherwise be tied up in the goods exported.

F. Information and other services:

Some banks produce regular bulletins on trade &

economic conditions at home & abroad & special reports on commodities markets.

Advise on appointments of suitable agents. For businessmen traveling abroad letters of introduction. On request banks obtain for customer for business

purposes.
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Deposits and Advances in ALLAHABAD Bank, Tumkur

Confidential opinions on the financial standing of

companies.

BRIEF HISTORY AND GROWTH OF ALLAHABAD BANK AT NATIONAL LEVEL


BRIEF HISTORY OF ALLAHABAD BANK
Allahabad Bank is the oldest public sector bank in India. It was setup in 1865 by a group of Europeans with a seed capital of Rs 2,00,000 By the end of 19th century, the bank had branches at Jhanasi, Kanpur, Lucknow, Bareilly, Nainital, Calcutta & Delhi.

In 1920, Allahabad bank was taken over by P&O Banking Corporation & its Head office was shifted to Kolkata in 1923 for business considerations & operational convenience. In 1927, the bank went into the fold of Chartered Bank that acquired the controlling interest in the P&O Banking Corporation.

On July 19, 1969, Allahabad Bank was nationalized along with 13 other major commercial banks. At the time of nationalization, the bank had a network of 151 branches, deposits of Rs 114 crore & advances of Rs 82 crore to its credit. On April 3, 1982, Allahabad bank opened its 1000th branch.

In 1989, Allahabad bank ventured into the credit card business by launching its credit card -the BOBCARD - Allahabad bank, with bank of Baroda. The bank, in 1992-93, entered into a Memorandum of Understanding with bank of India to launch India card, replacing BOBCARD.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Allahabad bank became the first nationalized bank in Eastern India to Became a depository participant of National Securities Depository Limited (NSDL) to offer de-mat & related services & initiated Flexi-fix Deposit Scheme to mobilize resources. The bank also introduced Kisan Card to facilitate agriculture related activities as well as to meet the domestic requirements of farmers. As on September 7, 2004, Allahabad bank had 1934 branches. The branches include 32 specialized branches (i.e. 4 Industrial Finance Branches, 6 SSI Finance Branches, 1 NRI Branch, 1 Industrial Finance-cum-International Branch, 2 Specialized Personal Banking Branch, 1 Specialized Savings Bank Branch, 3 Quick Collection Service Branch & 2 Trading besides 16 Service Branches The Bank made a foray into merchant banking activity in 1984 & subsequently transferred the merchant banking actives to All Bank Finance Limited, a wholly owned subsidiary, in 1991. In October 1989, United Industrial Bank Limited was amalgamated into Allahabad bank. Finance Branch)

Allahabad Bank: Buy


Suresh Krishnamurthy

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Mr O. N. Singh (right), CMD, with Mr Santanu Mukherjee, Country Manager, South Asia Visa International, at the launch of the bank's international debit-cum-ATM card - All-round business growth boosts profitability.

Logo of Allahabad Bank

PROFITABILITY ON SUSTAINED GROWTH PATH:


(Amount in Rs. Crores) For the year 2004-05 Net Profit Operating Profit Source: Primary Data

2005-06 706.13 1024.15

Growth (%) 30.33% 9.68%

541.80 933.79

Net Profit of the Bank increased to Rs.706.13 crore during the period

under review from Rs.541.80 crore during the corresponding period last year, registering a growth of 30.33%.

EXPANDING BUSINESS GROWTH:


PROFITABLITY
1800 1600 1400 1200 1000 GROWTH 800 600 400 200 0 Operating Profit Net Profit

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For the year YEAR

Growth (%)

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Deposits and Advances in ALLAHABAD Bank, Tumkur

(Amount in Rs. crores) Parameters Variation 31.3.'04 31.3.'05 31.3.'06 2005-06 2004-05 Amt. % Amt. % 62914 40762 22152 21216 19129 78561 15647 24.87% 15049 48500 30061 28940 18316 7738 18.98% 9285 7909 35.70% 5764 7724 36.40% 5650 -812 -4.25% 3529 31.44% 29.50% 35.17% 36.30% 22.62%

1) Total Business 47865 2) Total Deposits 3) Gross Advances 4) Non-Food Credit 5) Investments (Gross) 31477 16388 15566 15600

Source: Primary Data

The Bank's total business registered a growth of 24.87% during 2005-06 as against 31.44% during 2004-05. The Business of the Bank has increased to Rs.78561 crore as on March-end 2005 from Rs.62914 crore as on March-end 2005. Deposits grew by 18.98% during 2005-06 as compared to 29.50% in the corresponding period last year. Lower growth of deposits during 2005-06 was mainly due to decline of high cost term deposits. The lowcost deposits of the Bank increased by 20.78% during 2005-06 against 19.58% during 2004-05. Gross Advances grew by 35.70% against the growth of 35.17% during the period under review. As on 31.3.2006, aggregate deposits of the Bank increased by Rs.7706 crore or 19.22% as against the growth of Rs.9132 crore or 29.50% in the corresponding period last year. The market share of aggregate deposits of the Bank increased to 2.29% as on 31.3.2006 from 2.25% as on 26.3.2005. The Market share of Credit increased to 2.02% from 1.92% during this period.
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Deposits and Advances in ALLAHABAD Bank, Tumkur

EXPANDING BUSINESS GROWTH


80000 70000 60000 50000 GROWTH 40000 30000 20000 10000 0 31.3.'04 31.3.'05 YEAR 31.3.'06 1) Total Business 2) Total Deposits 3) Gross Advances 4) Non-Food Credit 5) Investments (Gross)

HIGHLIGHTS:
A. Resources Mobilization-Basketful of benefits to customers Twelve Hour Banking Services (8 AM to 8 PM) introduced in 33 selected branches. More branches going to banking.

offer

extended

hour

In line with RBI Policy Statement, No-frill SB Account opens new vista in banking offering scope for SBA/c withinitial depositof Rs.5/Special Thrust on Current Deposit Mobilization Introducing CURRENT PLUS deposit scheme offering customers benefit of Fixed Deposit in Current Account - added to this, the Current Deposit has add-on facilities like free remittance, free ATM Card, free Cheque Book and waivement of locker rent. Besides, the Bank has also introduced Premium Current A/c with multi facilities.

Special type SB Accounts Introducing special types of SB Deposit Account Mahila Sanchay for ladies (with Re.1/-), Premium SB, Vikash SB A/c for Local bodies/State Govt. Agencies, Scholarship to brilliant wards of SB Depositors in rural areas.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

High return Term Deposit Account Always offering competitive interest rates in term deposit with 1% more for senior citizens - present highest rate offered is 7.25% per annum for deposits of 36 months & above.

B. DEPLOYMENT:
Credit policies and introducing New Lending schemes

Schemes for channel financing to meet the both legs of corporate financing - purchase and sale Special Economic Zone (Mart) financing scheme for firms and companies which intend to start their export/import business in Special Economic Zones (SEZ).

Lending Schemes for Rural India:

To provide urban amenities in rural area (PURA), Bank introduced various lending schemes for basic infrastructure in village clusters like Rural Telephony and rural kiosks, Rural Health Care, Development of rural Tourism and rural Educational and Vocational Training Institutes.

Implementing 'Tenant Farmers' Financing Scheme' for tenant farmers toiling in others land on oral tenancy sector new hope of life. basis, giving this neglected

On 142nd Foundation Day, Bank introduced two novel schemes - Mahila Shakti Yojana for empowerment of women folk and General Credit Card Scheme extending personal loan to rural people.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Extending Credit to SME Sector:


In line with the directives of the Govt. of India, Bank is extending loan to SME Sector on borrower-friendly terms. Bank's exposure to SME sector is over Rs.2700 crores that is about 10% of net bank credit.

Retail Lending:
Bank has given more thrust to capture larger market share of retail banking and ensures smooth delivery channels through 241 Retail Banking Boutiques manned by specialized officials. ALL Bank Finance Ltd: All Bank Finance Ltd, a wholly owned subsidiary of the Bank, have been registered with the SEBI as a Category I merchant bankers and underwriters. The company earned an operating profit of Rs.2.40 crore for the year 2005-06 as against Rs.2.16 crore during the last year. The subsidiary offers a host of emerging opportunities which are as under:
o o o o o

Investment Banking Insurance Broking Stock Broking Wealth Management and Portfolio Advisory Underwriting

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Deposits and Advances in ALLAHABAD Bank, Tumkur

LOOKING AHEAD - PROSPECT OF A BRIGHTER FUTURE

Fully equipped to face the emerging challenges before us: Automation:


Bank has made strategic plan for extensive mechanization of operations by the year 2006-07. Some of the steps envisaged are: a) b) c) accounts. Centralized Banking Solutions (CBS) in 900 Branches. 250 more ATMs, 50 Cash Dispensers will be installed Installation of 50 number touch screen kiosks to provide customers various information regarding their

Computerization of 100% business by June, 2006

rural/semi-urban

Overseas Appearance:
Bank is slated to go international early part of 2006-07 with a) Branch at Hong Kong b) A representative office at Shenghen, China

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Deposits and Advances in ALLAHABAD Bank, Tumkur

ANNUAL BUDGET FOR THE YEAR 2003-04, 2004-05, 2005-06 [MARCH]


Sl No. 1 2 3 4 5 6

Particulars Capital Reserves Deposits Advances Investment (gross) Working Capital Total

2003 346.70 823.59 25463.38 12543.60 12476.04 28050.92 79704.23

2004 346.70 1205.23 31476.60 15341.54 15600.09 34704.28 98674.44

2005 346.70 1980.95 40762.07 21150.82 19128.87 45144.93

2006 446.70 3191.83 48499.69 29147.78 18315.67 55291.99

128514.4 154893.66

Source: Primary Data


60000 50000 40000 30000 20000 10000 0
Capital Reserves Deposits Advances Investment (gross) Working Capital

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Deposits and Advances in ALLAHABAD Bank, Tumkur

ANNUAL BUDGET FOR THE YEAR 2003-04,


2004-05, 2005-06 [MARCH] IN A PERCENTAGE GROWTH
Sl No. 1 2 3 4

Particulars Deposits Advances Investment (gross) Working Capital

2003 12.34% 19.30% 13.81% 13.27%

2004 23.62% 21.51% 25.04% 23.72%

2005 29.50% 35.17% 22.62% 30.08%

2006 18.98% 35.71% -4.25% 22.48%

Source: Primary Data


Deposits Advances Investment (gross) Working Capital

40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% -10.00%

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Deposits and Advances in ALLAHABAD Bank, Tumkur

INTREST PAID ON FOR THE YEAR 2003-04, 2004-05, 2005-06 Sl No. 1 2

Particulars Deposits Borrowings Total

2003 1614.90 45.66 1660.56

2004 1540.80 42.11 1582.91

2005 1767.44 54.12 1821.56

2006 2115.54 74.25 2189.79

Source: Primary Data

2500
Deposits Burrowings

2000

1500

1000

500

0 1 2 3 4

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Deposits and Advances in ALLAHABAD Bank, Tumkur

INTREST EARNED FOR THE YEAR 2003-04, 2004-05, 2005-06

Sl No. 1 2

Particulars Investment Advances

2003 1187.75 1211.90

2004 1302.24 1322.72

2005 1462.10 1682.58 3144.68

2006 1488.42 2191.39 3678.81

Total 2399.65 2624.96 Source: Primary Data

2500
Investment Advances

2000

1500

1000

500

0 1 2 3 4

RESEARCH OF THE STUDY

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Deposits and Advances in ALLAHABAD Bank, Tumkur

The research gives the information relating to where & how I collected the data to achieve the objective of the study. And gives clear picture of the entire design structure & plan of the study.

Statement of the problem:


The Indian Banking Sectors are playing a vital role in the development of priority sectors by providing a various type of deposits & advances to them. The Allahabad Bank existed with the main intention for to help priority Sectors. By this research study in Allahabad Bank, Tumkur. I make an attempt to identify the defects in the operations of the bank & suggestions for to take remedial measures.

Objectives of the study:


To know the growth &development of the commercial banks in India. To know the growth &development of Allahabad Bank in National level. To analyze the various types of deposits & advances provide to the

customers by the Allahabad bank, Tumkur Branch. To study the problems in respect of deposits & advances. To offer pragmatic suggestions for improvement of the bank.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Methodology of Data collection:


I have collected the data from both primary & secondary sources.

Primary data is collected depositors who deposits & burrowers who burrowed advances in Allahabad bank. Tumkur through the questionnaire & interviews.

Secondary data is collected from the books journals Bank Broachers, annual reports & in Internet.

Scope of the study:


The area of the study is limited to the deposits & advances provided by the Allahabad bank, Tumkur it covers only customers of that bank.

Limitations of the study:

Data collection: I have collected the information relating to only 4 years from 2003 to 2006 The analysis of deposits & advances of the bank was made through the questionnaire & direct interviews with the 50 customers only due to the time shortage. Time: The time provided for the study was limited.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Operational definitions: The operational terms used in this report has is own meaning. They are as follows: Bank Here the bank means Allahabad bank. Tumkur. Government Stands for either state government or central government. Mn Million. Avg Average. BR Act Banking Regulation Act. Branch means Allahabad bank. Tumkur.

Respondent depositors means the selected depositors who gave

response for the questionnaire.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

BRANCH PROFILE
Introduction: The Allahabad Bank opened its branch in Tumkur on 26.11.1976. This branch is rendering its services since from 41 years. Even though it had so ups & downs. It has risen to great heights to set itself Up as a model for other to follow. Objectives: The main objective of this bank is to provide the deposits & advances for agricultural development for other priority sectors. This branch office is situated in J C Road, Tumkur, the area of operation of the bank shall be confined to the entire Tumkur district. The Bank has followed the rules & regulations of RBI. And it acts according to directions given by the HO/CO and RBI. Organization Chart:

The Organization structure of the bank (Allahabad Bank- Tumkur) is as follows: The Total staff of this Branch is 8.
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Deposits and Advances in ALLAHABAD Bank, Tumkur

THEARTICAL BACKGROUND AND ANALYSIS OF THE DIFFERENT TYPES OFDEPOSITS AND ADVANCES OF THE ALLAHABAD BANK Deposits: Meaning & Introduction:
The deposits accepted by a banker form the public has a relationship between a banker & a customer begins with the opening of a deposits accounts by the customer with the bank. A bank has dis-creation to allow a person to open or not to open a deposit account & his discretion cannot be questioned. Thus, the deposits are useful to the running the bank fruitful & we get some interest every year for which the deposits we kept in a bank.

Types of deposits accounts:


The deposits accepted by a banker from the public may be classified in to 2 broad categories.

a) Demand liabilities or demand deposits. b) Time liabilities or time deposits.

Demand deposits are the deposits repayable on demand. They include deposits received on current accounts & savings bank accounts.

Time deposits are deposits repayable on the expiry of a fixed period of time & deposits repayable after the expiry of a certain period of notice of withdrawal given to the banker. They include fixed deposits accounts & recurring deposits accounts.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Savings Bank Accounts:


In the presidency towns of India. There were a few specialized banking institution called Trustee Savings Banks, to accept saving deposits & to encourage the habit of savings among the people.

After the abolition of the trustee savings banks the Post Offices came into an existence to accept savings deposits from the low income group.

Later the Commercial Bank also opened savings accounts section & started accepting saving deposits. Today, savings bank accounts have become very popular with the commercial banks as well as with the depositors.

General features of savings bank accounts:


Savings bank accounts are meant for middle & low income groups who

can deposits only small sums & accounts can be opened with just Rs. 5 with a minimum balance of Rs. 100 & 1000 this accounts can be operated by cheques. Incidence charges will be charged if minimum balance is not their maintained. In a savings bank accounts, a customer can deposit any amount of money & any on of times he can withdrawals from this account. Today in India, 150 withdrawals in a year are allowed by most of the banks further total amount of withdrawals that can be made any day also restricted.
As a savings bank accounts is opened by a customer with a view to

earning interest on his deposits. Today interest at rate of 4.5 per annum is allowed by every bank on the savings bank deposit interest is allowed
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Deposits and Advances in ALLAHABAD Bank, Tumkur

Rs 10 lying with bank between 10th & last day of every month &it is credited to customer account half yearly.

Insurances-linked Savings Bank Accounts:


In order to mobilize more savings bank deposits it is better to have a some idea about Insurance Linked Savings Bank Accounts. In recent time, commercial banks in the private as well as public sector have introduced this offer of the additional benefit for the life insurance cover along with the usual benefits of a savings bank account.

General Features:
This scheme has been introduced under the arrangements with the life insurance corporation of India & insurance benefit attached to the Insurance Linked Savings Bank Accounts is free service as the required insurance premium is paid by the bank & not by the account holder. There is no medical examination of the account holder. Under this scheme the account holder has to maintain a minimum balance of Rs 500 [if the branch of the bank is in a rural area] or Rs 1000 [if the branch of the bank is in a urban area] In case the depositor or a account holder dies, nominees will be the following amount of insurance benefit. Double the average balances in the depositors account eligible for interest subject the maximum of Rs 10,000 if the account holder is between 18 & 21 years of age. Depositors account eligible for interest subject the maximum of Rs 5000 if the account holder is between 41 & 49 years of age. Insurance covered is provided on yearly renewal basis. The depositor will get interest on his deposits as usual.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

All bank Overdraft facility in Savings Bank:


1) O/D facility in savings bank accounts is available to all employees of our Corporate clients / Institutions / Organizations for meeting their exigencies & whose salaries is distributed through S/B A/cs. 2) O/D is allowed up to Rs 10,000 or 1 month net salary, which is less 3) No margin stipulation & no moratorium period. Documentation in a booklet form. 4) Loan to be adjusted at least once in a month by the amount of salary To be credited to the A/c . 5) Rate of interest: PLR i.e., 11.5% p.a. 6) No processing fee.

Security: Undertaking from employer to credit monthly salary.

Current Bank Accounts: Current accounts form the most important type of bank accounts in practice there cannot be any commercial bank without current accounts.

General Features:
Current accounts are intended for commercial & industrial undertakings, Public bodies etc which have numerous & frequent banking transactions & it opened by a customer for the convenience of making payments by cheques . Current accounts is generally, opened with a minimum deposit Rs 2000 or 3000 [as per the decision of the Indian Banks Association].

A current accounts is an active or a running a/c which is in operation

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Deposits and Advances in ALLAHABAD Bank, Tumkur

continuously. As such a customer can deposits into a current account any amount of money & any number of times similarly he can withdraw from the current a/c any amount as he likes as long as there are sufficient funds to his credit.

Deposit into current accounts are made by filling in the pay-in-slips & withdrawals from this a/c are made by cheques & as per the recent directives of the reserve bank the applicant is required to submit 2 photograph copies & signature.

Again, not only no interest is allowed on current deposits but also incidental charges are levied by a bank on an un remunerative current account for the work & expenses involved in its maintenance.

Fixed Bank Accounts:


Fixed amount of money is deposited by the customer for a fixed period of time or fixed rate of interest is called fixed deposit accounts. They are called time deposits or time liabilities in England as their withdrawals are subject to the services of a period of notice. In India they are known as term deposits.

General Features:
Fixed deposit accounts are intended for small investors who prefer to invest their money on safe bank deposits rather than on risky industrial securities with a view to earning high & steady interest on their deposits. A fixed deposit account can be opened with a minimum deposit of Rs 50 the period of deposits generally varies from 3 months to 10 years. As a fixed deposit is left with the banker for affixed period. It can be withdrawn only after the expiry of specific period by returning the fixed

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Deposits and Advances in ALLAHABAD Bank, Tumkur

deposit receipt given by the bank at the time of depositing money. The rate of interest offered on a fixed deposit varies from 6% to 13% depending upon the period of deposits.

As per 269T of the IT Act 1961. As amendment by Direct Tax Laws Act 1987. Repayment of money from a fixed deposit should be made by crediting the amount plus the accrued interest to the customers current A/c or savings bank A/c. if there is no current A/c or savings bank A/c by an account payee cheques or draft if amount involves is more than 20,000. Fixed Deposit Receipt: When a banker accepts a fixed deposit he gives the depositor a receipt called the Fixed Deposit Receipt.

General Functions:
It serves as an acknowledgement of the receipt of the deposit by the banker from the customer. It lays down the terms of the contract between the banker & the depositor [i.e., the rules governing the fixed deposit]. It serves as the means through which the repayment of the fixed deposit can be obtained by the depositor. Normally, the repayment of the fixed deposit can be obtained by the depositor only on the production of the fixed deposit receipt duly discharged. However, if the deposit receipt is lost, the depositor can obtain the repayment of the deposit by giving an indemnity bond to the banker. It can also serve as a security for raising a loan from the bank.

Recurring Deposit Accounts or Cumulative Deposit Accounts:

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Recurring deposit accounts are variants of & innovations over the savings bank accounts. In short they are intended to encourage the habit of savings deposits they have become very popular in recent years.

General Features:
Recurring deposit accounts are meant for people who have regular monthly incomes & are intended to encourage the habit of savings among the depositors on a regular basis.

The depositor deposits a fixed sum of money every month for an agreed period & at the end of the specified period. He gets back the amount deposited together with the interest accrued there on.

The rate of interest offered by the banker on the recurring deposits is almost equal to that allowed on the fixed deposits generally, it varies from 6% to 13%.

A recurring deposit account can be transferred from one branch to another branch of the bank without payment of any change for the transfer.

Paying-in-slip Book or Pay-in-slip Book:


A paying-in-slip book is a book which contains printed slips called payin-slips . The paying-in-slips have counterfoils. The paying-in-slip book is supplied by the bank to the customer.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Cheque Book:
Money deposited in a current account is withdrawal by cheques . It is a book which contains 10 to 20 blank cheques with counterfoils. The cheque forms are serially numbered the serial numbers of the cheque forms issued to a customer are noted down in the cheque book register as well as on the ledger folio of the customers account so a to prevent the use of cheque forms issued to the one customer by another customer.

Pass Book:
A pass book is a copy of the customers account in the banks ledger. It contains the particulars of the customers bank transactions as recorded in the banks ledger.

Deposit scheme:
Gold Deposit

Traditionally Indian families have held gold in high esteem- not just as a precious metal for making ornaments but for also as a valuable family

investment. But in the process gold has remained largely idle and has not fulfilled its earning potential. Allahabad Bank's Gold Deposit scheme seeks to redress this situation by offering you not only interest but much more

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Deposits and Advances in ALLAHABAD Bank, Tumkur

WHO CAN PARTICIPATE?


Following categories of Resident Indians can subscribe to the scheme. a. Individual singly or jointly b. Individual as a natural / Legal guardian on behalf of a minor child c. HUF d. Trust e. Company Nomination facility is available if the deposit is in a single name in individual capacity.

NATURE OF DEPOSIT: Gold can be deposited in the scrap form of jewellery I bars or coins, with a minimum deposit of 200 gms. PERIODOF DEPOSIT 3 years 4 years 5 years 6 years 7 years RATEOF INTEREST 3.00 % 3.25 % 3.50 % 3.75 % 4.00 %

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Minimum lock-in period is one year Interest will be paid in Indian Rupees either annually on the 31 st March or compoded annually for payment on maturity, at the option of the investor.

REDEMPTION:
The principal amount of gold deposited will be paid back on maturity either in the form of standard gold bars of 995 I 999 fineness or in Indian rupees as per option of the depositor.

Deposit Schemes
The rates will also be applicable in all types of Term Deposits including Recurring Deposit and Capital Gains Accounts Scheme, 1988.The interest rates are as under : Domestic Term Deposit 7 days to 14 days
(For minimum deposit of Rs.1.00 lac)

Existing Interest Rate (% p.a) 4.00 4.50 4.75 5.25 5.25 5.75 6.25 7.00 7.25 7.50 8.00

Revised Interest Rate w.e.f. 14.11.2006. (% p.a) 4.00 4.50 4.75 5.25 5.50 6.25 7.00 7.50 7.50 7.50 8.00

15 days to 29 days 30 days to 45 days 46 days to 60 days 61 days to 90 days 91 days to 180 days 181 days to less than 1 year 1 year to less than 2 years 2 years to less than 3 years 3 years to less than 7 years 7 years and above but up to 10 years

PENAL RATE OF INTEREST FOR PREMATURE WITHDRAWAL OF

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Deposits and Advances in ALLAHABAD Bank, Tumkur

DOMESTIC TERM DEPOSITS Period of Deposit 1. Premature closure of term deposits for reinvestment in our bank Amount of Deposit Any amount Up to Rs. 1.00 lac All others Penal Rate of Interest No penal rate to be charged No penal rate to be charged 1 % penal interest to be charged

2. 15 days and up to 1 (one) year 3. All others Source: Primary Data

The aforesaid rates will be applicable for fresh deposits and renewal of maturing deposits and rates are subject to revision at any time.

FOREIGN DEPARTMENT HEAD OFFICE


Gillander House, 8, N. S. Road, Block - F, Ground Floor, Kolkata - 7000 01 Email: albfd@giascl01.vsnl.net.in Advances- General:

Introductory:
Lending is the very curx & center of banking which encompasses the areas like pre-sanction appraisal. Credit decision-making documentation. Post sanction follow up recovery. The banking historical reasons have undergone paradigm change in recent time on account of banking sector reforms.

Lending Policy:
After Nationalization of banks in the year 1969, RBI has framing policies for extension of bank credit in tune with the national economic policy . Banks
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Deposits and Advances in ALLAHABAD Bank, Tumkur

are expressed. To achieve certain objectives depending upon the national priorities besides being profitable through quality lending. The policies of RBI pertaining to bank credit as they exit today lay emphasis on providing credit on priority to : Agriculture.

Small-scale industries With special reference to village cottage and tiny industries.

Other priority sector like retail trade, small business, professionals & self employed persons, education etc. Medium & large-scale industry. In keeping with various policy guidelines laid down by RBI & taking into account the operational requirements, the bank has been releasing a lending policy document at periodical intervals say on yearly basis, after obtaining The approval of the Board of Directors. The policy guidelines are required to be followed scrupulously. Following are the main features of the lending policy as it exists today: The objectives of the banks credits policy as at present are: 1) The loan assets remain safe & secure. 2) The loan assets remain performing. 3) Profitable deployment of the resources ensuring asset liability matching & recycling of funds. 4) Adoption of risk management concept for effective credit portfolio management. 5) Business management.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

The geographical spread, Sartorial deployment of credit shall be determined having regard to the credit absorption capacity availability of viable lending opportunities & the credit deposit ratio prevailing in various regions/state with the overall objective of furthering the economic development of the region/sector. Exposure limits to the various industries & fixed with Boards approval & are reviewed at periodical intervals. Advances to sectors, which are subject to high degree of asset price volatility such as Real Estate sector at present may be avoided. A relatively lower priority is presently being assigned to the following sectors due to the existing level of NPAs & the industry scenario. Engineering. Iron & Steel. Chemicals. Textiles. Consumer Electronics. NBFCS. Coffee. Sugar. Cement.

Real-Estate Development.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Public sector and NBFCs: Preference is given at present for exposure to public sector undertakings with sound financials & good performance. Other than NBFCs enjoying exemplary rating from Rating, Agencies whose credit limits are sanctioned with prior approval from corporate offices. NBFCs in general are accorded low priority at present for lending purposes.

Consumer credit and Group approach:


Retail credit including personal banking loans. Housing Finance & Trade Finance is presently, a thrust area enjoying performance. Normal funding, requirements of the healthy performing units belonging to a group should not be hampered by adoption of group approach. Unless the companies concerned are in defaulting list or the promoters are non co-operative & or where the funds from non performing units are diverted to other units of the group. The guiding principle is Commodity of management & effective control salient features of the group approach are as follows: In case any unit belonging to a group becomes irregular & the concerned promoters do not co-operate to settle their dues. The group will not be provided accommodations either for financing new projects or expansion of existing units unless the group arrives at amicable settlement with the bank. While dealing with cases involving extension of fresh facilities to the units belonging to various industrial groups, considering the possibility of intra group transfer of funds, the following points be kept in view :

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Financial assistance for setting up new venture or expansion to unit belong in to industrial group which is willful defaulter or non co-operative shall not be extended as to ensure that no amount lend to a healthier unit of a group is transferred to another unit with in the group by reducing current ratio. The sick units in the group shall be looked after by other healthy cash rich companies of the group for their revival instead of the weak units seeking bank finance. In an event of any dispute or dissension within the group, any attempt on the part of the group to unduly prolong/postpone a settlement on account of such dispute / dissension should not be accepted. While committing fresh are additional fund to a unit of any recalcitrant group, bank should exercise necessary care & caution & obtain full information about dealing of the concerned units & all the other units of the group with other banks / financial institutions. Industrial units in public sector to be left out of the purview of group approach.

All Bank Housing Finance Scheme

Eligibility:
Permanent salaried employees, Professionals & Self-Employed Persons, Businessmen, having regular income to liquidate the loans.

Special Facility:
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Deposits and Advances in ALLAHABAD Bank, Tumkur

Repayment Option for salaried persons desirous to extend the repayment period beyond the date of retirement under Public Housing Loan Scheme of the Bank will be eligible up to 5 years after the date of retirement. Availability of Progressive monthly installments (PMI) options under public housing loan scheme.

Loan amount:
Up to 60 monthly Gross Salary last drawn in case of salaried persons.For others four times of annual taxable income subject to repayment capacity. However take home is not less than 40% of gross salary for salaried person and for others monthly EMI is not more than 50% of average gross salary. (In such case where husband & wife are working, their income may be clubbed OR two members of the same family may avail Housing Loan on joint basis, in such cases income of both members may be clubbed.) (While computing repaying capacity in case of joint borrowers, income of all borrowers may be clubbed. Joint borrowers may be the co-owner of the property or they may not be co owner (but must be legal heirs of owner of the property / PF nominee / Spouse having future interest in the property) but their income is to be considered as one of the source of loan repayment).

Repayment Period:
i. ii. iii. For salaried persons Max. Period of 20 years or length of remaining service, whichever is less. For other - Maximum period of 15 years or attainment of 65 years of age, whichever is earlier. Loan Repayment Options is available.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

a. Scheme:

Repayment option for salaried persons desirous to extend the

repayment period beyond the date of retirement under Housing Loan

To extend repayment period of housing loan to salaried persons upto 5 years after the date of retirement subject to the condition that EMI will be within 60% of their estimated post retirement monthly earnings (pension plus ascertainable other income such as rental earnings, income from investment in securities/LIP/NSC etc., if any) as also existing net take home salary after taking all deductions will not be below 40% of gross salary.

There will also be flexibility to consider some lump sum / bullet payment of full or part of the loan outstanding out of future sources of fund and draw the repayment schedule accordingly.

If post retirement EMI is more than stipulated norms, pre-retirement EMI may be proportionately increased with borrowers consent.

b. Offering progressive monthly instalments (PMI) options

Under the plan, the initial monthly instalments for the first 5 years shall be kept lower i.e., 80% of normal EMI and it will gradually go up to 90% of EMI plus whatever shortfall during the first 10 years shall be realized after 10th year of loan. Accordingly, a three-tier repayment schedule will be drawn up.

Borrowers will have also option for 2 tier repayment structure (with first tier not above one third of repayment period) Borrowers may also get higher amount of progressive monthly installments (PMI) than the above norms by opting higher %of EMI for PMI calculation. Existing borrower or Banks employees also can exercise options (a) & (b).

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Primary:
Equitable/ Registered mortgage of the property or Pari-passu charge over the property if the borrower (salaried person) has already availed loan from his organization. a. Guarantee from 2 persons OR assignment of Life Insurance Policy (face value) / Fixed Deposits / NSC / KVP / Govt. Security equal to 25% of loan amount. (Policies issued by Life Insurance Corpn. of India, ICICI Prudential, Tata AIG, Birla Sun Life, Max Life are accepted.)

Prepayment Penalty:

If liquidated within 12 months: 2% of outstanding If liquidated after 12 months: 1% of outstanding No Prepayment Penalty for death or payment made out of own resources.

Others:
For salaried persons: Total deduction should be less than or equal to 60% of gross income.

For others: Total deduction should be less than or equal to 50% of gross income. Utilisation of loan for purchase of land will be restricted to 40% of the sanctioned loan or 85% of cost of land (including cost of registration also) whichever is lower.

Housing Loan will not be sanctioned for purchase of land only.

All Bank Education Loan Scheme


Eligibility Criteria: Studies in India:

School education including plus 2 stage Normal Graduation Courses - B.A., B. Com., B.Sc., Microbiology.
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Deposits and Advances in ALLAHABAD Bank, Tumkur


Post Graduation Course: Masters Courses, Ph.D., etc. Professional Courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management (including Hotel Management), Computer/ Information Technology, Journalism & Mass Communication, etc.

Computer Certificate Courses of reputed Institutes accredited to Department of Electronics or Institutes affiliated to University. Courses conducted in India by reputed Foreign Universities. Evening courses of approved institutes. Courses leading to diploma / degree etc. conducted by the Colleges/ Universities approved by UGC / Govt./ AICTE / AIBMS / ICMR etc

Studies Abroad:

Graduation: For job oriented professional / technical courses offered by reputed Universities. Post Graduation: MCA, MBA, MS, etc. Courses conducted by CIMA London, CPA in USA etc

Quantum of Loan:
Need based finance subject to repaying capacity of the parents/ students with following ceilings: Studies in India: Maximum Rs 7.50 lacs Studies abroad: Maximum Rs.15.00 lacs

Margin:
For loan upto Rs 4.00 lakhs: NIL For loan above Rs 4.00 lakhs: (i) Studies in India: 5% (ii) Studies abroad: 15%

Scholarship / Assistantship to be included in Margin.


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Deposits and Advances in ALLAHABAD Bank, Tumkur

Margin Money to be brought on year to year basis as and disbursements are made on a pro-rata basis

Rate of Interest:
o o

For students of IITs / IIMs & other Professional Courses: PLR - 2% (Floating), irrespective of Loan Amount. The aforesaid Interest Rate will be applicable to existing & future

Education Loan to the students of IIMs / IITs for their regular Management & Technology Courses as also students of other Professional Courses.
o o o

For other students: PLR (Floating), irrespective of Loan Amount. However, interest at PLR - 1 % may be charged in case of loan

above Rs. 7.50 lacks provided the collateral security offered to secure the loan consists either residential property for full value of loan or liquid security for more than 50% value of the loan.
o

The aforesaid revision will be applicable for all future loan with

effect from 01.01.2005.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Application of Interest:
Simple rate of interest will be applied during course / moratorium period and thereafter the entire outstanding interest (if servicing of interest not done during moratorium period) will be added back to the principal account and compound interest (with monthly rest) will be applied in the account till liquidation of the entire loan.0.5% rebate will be allowed during moratorium period in case interest is serviced regularly

Repayment:
Repayment Holiday / Moratorium is Course Period + 1 year (in case job is not obtained) or 6 months after getting job, whichever is earlier. Loan to be repaid within a maximum period of 7 years after commencement of repayment.

Security:
For loan up to Rs 4.00 lacs: No collateral security is required. For loan above Rs 4.00 lacs and up to Rs 7.50 lacs: Satisfactory third party guarantee is required. For loan above Rs 7.50 lacs: a. b. Collateral security of suitable value. Co-obligation of parents / guardian / third party along with

assignment of future income of the student for payment of installments

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Deposits and Advances in ALLAHABAD Bank, Tumkur

DATA ANALYSIS AND INTERPRETATION


A study of deposits & advances, conducted in Allahabad bank, Tumkur, due to time consideration. I have interviewed only 50 respondent borrowers who have taken different types of deposits & advances. The data is collected at questionnaire & interviewed.

The chapter tells about the respondent borrowers perception, opinion [after the services] about the Allahabad bank Tumkur.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 1: Table showing the borrowers interest of participation in my


research study.

Total no. of questionnaires given to borrowers Questionnaires received with response Questionnaires not received back

75 50 25

Source: Primary Data Interpretation: During the research study 75 questionnaires were given to borrowers out of that. I received back only 50 questionnaires with response. The major parts of remaining 25 questionnaires for which I have received back are given to the farmers.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Graph 1:

Graph showing the borrowers interest of participation in my research study.

PARTICIPATION IN RESEARCH

Total no. of questionnaires given to borrow ers Questionnaires received w ith response Questionnaires notreceived back

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 2: Table showing the age group of the responded borrowers.

Age- group 20-30 30-40 40-50 50-60 60-70 Total

No. of respondents 4 22 19 5 50

Percentage (%) 8 44 38 10 100%

Source: Primary Data Interpretation: This data is collected to known the age of borrowers. By analyzing the above data, we can conclude that all age grouped people are having banking habit but from the age between 30 to 40 years people are having habit than others.

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Graph 2:

Graph showing the age group of the responded borrowers.

50 45 40 35 30 25 20 15 10 5 0 20-30 Yrs. 30-40 Yrs. 40-50 Yrs. 50-60 Yrs. 60-70 Yrs.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 3: Table showing the sex category of the responded borrowers.

Category Male Female Total

No. of respondents 45 5 50

Percentage (%) 84 16 100

Source: Primary Data Interpretation: It is clear from above table that the majority is of male only. It has to be noticed that the banking habit is less in female category when compared to male.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Graph 3:

Graph showing the sex category of the responded borrowers.

90 80 70 60 50 40 30 20 10 0 1 2

Male Female

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 4: Table Showing the Education qualification of the responded


borrowers. No. of respondents 16 12 7 1 10 4 50 Percentage (%) 32 24 14 2 20 8 100

Qualification Up to SSLC PUC Graduation Master Degree Professional Courses Uneducated Total Source: Primary Data Interpretation:

This data is collected to know the real qualification of borrowers whether they are educate or not.

By the above data analysis it is clear that there was both educate & un educate borrowers out of it majority of the i.e., 92% are educated only few borrowers i.e., 8% of them are un educated.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Graph 4:
Graph Showing the Education qualification of the responded borrowers.

35 30 25 20 15 10 5 0
Up to SSLC PUC Graduation Master Degree Professional Courses Uneducated

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 5: Table Showing the Occupation of the responded borrowers.


No. of respondents 12 10 1 10 9 8 50 Percentage (%) 24 20 2 20 18 16 100

Occupational Category Govt. employees Pvt. Employees Self Employees Professionals Business Agriculture Total Source: Primary Data Interpretation:

This gives information about the nature of work of each borrower. By analyzing the above data, it is clear that the Govt. employees who constitute the majority part i.e., 24% out of them again the majority are teachers who drawn salary through this bank.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Graph 5:
Graph Showing the Occupation of the responded borrowers

30

25

20

15

10

0
Govt. employees Pvt. Employees Self Employees Professionals Business Agriculture

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 6: Table showing the monthly income profile of the responded


borrowers. No. of respondents 11 19 13 7 50 Percentage (%) 22 38 26 14 100

Income group Below 5000 5000 10000 10000 20000 20000 and above Total Source: Primary Data Interpretation:

Table shows monthly income of the respondent borrowers. It is evaluated from the above table that the majority i.e., 38% borrowers are placed are comes under the income group between 5000 10000, 26% are between 10000 20000, 22% are earning below 5000 per month & remaining 7% are earning more than 20000 per month.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Graph 6:
Graph showing the monthly income profile of the responded borrowers.

40 35 30 25 20 15 10 5 0 Below 5000 5000 10000 10000 20000 20000 and above

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 7: Table Showing the purpose / reason for advances taken by the
responded borrowers. No. of Category of loan Education Business Agriculture To purchase the vehicle To build /purchase of House / building SSI Others Total Source: Primary Data Interpretation: Table shows the purchase for which the advances taken by the respondent borrowers. Respondent s 6 9 8 8 15 1 3 50

Percentage (%) 12 18 16 16 30 2 6 100

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Graph 7:
Graph Showing the purpose / reason for advances taken by the responded borrowers.

35 30 25 20 15 10 5 0
Education Business Agriculture To purchase To build the vehicle /purchase of House / building SSI Others

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 8: Table showing the advances amount sanction by the bank to


responded borrowers. No. of respondents 7 10 18 8 7 50 Percentage (%) 14 20 36 16 14 100

Category of loan 5000 25000 25000 50000 50000 100000 100000 200000 200000 & above Total Source: Primary Data Interpretation:

Table shows that the amount in which sanction to borrowers. By analyzing the above data, it is clear & we can conclude that the majority of respondent have taken advances in between the 50000 to 100000.

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Graph 8:
Graph showing the advances amount sanction by the bank to responded borrowers

40 35 30 25 20 15 10 5 0
5000 25000 25000 50000 50000 100000 100000 200000 200000 & above

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 9: Table showing the opinion of responded borrowers on amount


sanction by the bank.

Opinion Sufficient Insufficient Total Source: Primary Data Interpretation:

No. of respondents 47 3 50

Percentage (%) 94 6 100

Table showing the opinion of respondents about the advances amount sanction by the bank is sufficient or not. It is clear from above table that most of i.e., 94% of the respondent borrowers are satisfied with the advanced amount sanctioned by the bank.

Graph 9:
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Deposits and Advances in ALLAHABAD Bank, Tumkur

Graph showing the opinion of responded borrowers on amount sanction by the bank.
100 90 80 70 60 50 40 30 20 10 0
Sufficient Insufficient

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 10: Table showing the repayment period given by the bank to
responded borrowers. No. of respondents 12 21 13 3 1 50 Percentage (%) 24 42 26 6 2 100

Repayment period 20 months 3 years 5 years 7 years 10 years & above Total

Source: Primary Data Interpretation: Table shows repayment time given to the borrowers by the bank. By analyzing the above data mentioned above table, we can conclude that the majority of respondent have taken medium term advances (i.e., for 3 & 5 years) from the bank.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Graph 10:
Graph showing the repayment period given by the bank to responded borrowers.

45 40 35 30 25 20 15 10 5 0 20 months 3 years 5 years 7 years 10 years & above

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 11: Table showing the satisfaction of the responded borrowers


regarding repayment period given by the bank.

Opinion Yes No Total Source: Primary Data Interpretation: Table showing

No. of respondents 25 25 50

Percentage (%) 50 50 100

the borrowers satisfaction regarding the repayment

period of advances [if satisfied Yes, otherwise No]. There is equal percentage of satisfaction on the repayment period given by the bank to repay their advances.

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Graph 11:
Graph Showing the satisfaction of the responded borrowers regarding repayment period given by the bank.

60
Yes No

50

40

30

20

10

0 1 2

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 12: Table showing the opinion of responded borrowers


regarding repayment period given by the bank. Opinion on repayment mode Easy OK Burden Total Source: Primary Data Interpretation: Table shows the opinion of respondent borrowers about the repayment modes of advances. The repayment modes [i.e., installments] of advances out of 50 respondents only a few i.e., 12% of people had an adverse opinion on remaining 88% of them are happy with the repayment modes of advances provided by the bank No. of respondents 20 24 6 50 Percentage (%) 40 48 12 100

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Graph 12:
Graph showing the opinion of responded borrowers regarding repayment period given by the bank.

60

50

40

30

20

10

Easy

OK

Burdon

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 13: Table showing the rate of interest payable period by the responded borrowers to the bank. Rate of interest 9.5 % 11.5% 12.0% 13.5% 140% 14.5% Total Source: Primary Data Interpretation: No. of respondents 6 20 12 2 5 5 50

Percentage (%) 12 40 24 4 10 10 100

The above table shows the rate of interest charged by the bank to the advances of respondent borrowers. it is clear that the majority of respondent borrowers pay the interest rate of 11.5%.

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Graph 13:
Graph showing the rate of interest payable period by the responded borrowers to the bank.

45 40 35 30 25 20 15 10 5 0 1 2 3 4 5 6

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Table 14: Table showing the opinion of responded borrowers on


interests rates.

Opinion on interest rates Reasonable High Very High Total Source: Primary Data Interpretation:

No. of respondents 41 8 1 50

Percentage (%) 82 16 2 100

Table shows the opinion of respondent borrowers regarding the rate of interest charged by the bank. The 82% of them says that the interest is reasonable.

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Graph 14:
Graph showing the opinion of responded borrowers on interests rates.

90 80 70 60 50 40 30 20 10 0 Reasonable High Very High

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Table 15: Table showing the opinion of responded borrowers


regarding the lending procedure of the bank.

Particulars Simple Complicated Total Source: Primary Data Interpretation:

No. of respondents 25 25 50

Percentage (%) 50 50 100

Table shows the opinion of respondent borrowers regarding the procedure followed by the bank while providing the loan. By analyzing the data available in the above table it is very clear we can conclude that there is an equal percentage of opinion on the lending procedure of the bank.

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Graph 15:
Graph showing the opinion of responded borrowers regarding the lending procedure of the bank.

60

Simple Complicated

50

40

30

20

10

0
1 2

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Table 16: Table showing the percentage of the responded borrowers on


the bank. Burrower perception on banks service Very good Good Average No Response Total Source: Primary Data Interpretation: Table shows the respondent borrowers perception regarding the service rendered by Allahabad bank Tumkur. The Allahabad Bank, Tumkur is based on the main aim is to serve the society in a good manner as much as possible.

No. of respondents 40 5 2 3 50

Percentage (%) 80 10 4 6 100

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Deposits and Advances in ALLAHABAD Bank, Tumkur

Graph 16:
Graph showing the percentage of the responded borrowers on the bank.

90 80 70 60 50 40 30 20 10 0 Very good Good Average No Response

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Deposits and Advances in ALLAHABAD Bank, Tumkur

FINDINGS
General Findings:
As per my knowledge concerned, I found the following during my study. 1. It was observed that the Allahabad Bank has been functioning effectively & one of the leading Scheduled Commercial Bank in India. It has its branch in Kolkata & newly started branch in Honkhong also. The Tumkur branch is rending its services most successfully since from 1976. 2. Sanction of Deposits & Advances are increasing in every year. 3. Bank sanction of Deposits & Advances to all types of class. 4. The Bank also has safe deposit locker facility & there is great demand for it. 5. The total banking transactions are fully computerized. 6. Whole bank staff is very active. They are very quick in doing their work.

Specific Findings:
1. Major part deposits & advances are going out in the form of agriculture finance, Housing finance thus it has shown its concern for the farmers,& equally aware of the need to assist to all the class of the society to have their dream house by providing finance at lower interest rate (4 4.25%)

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Deposits and Advances in ALLAHABAD Bank, Tumkur

2. The bank concentrates mainly on the development of agriculture & other priority deposits & advances to develop the self-employment opportunities. 3. The bank interest rates are charged over the time as per the direction of RBI up to some extent the rate of interest is reasonable: it varies from 11% to 14%. The interest rate on housing finance is very low i.e., 8.25%. 4. As per the primary data, the rate of interest on deposits & advances are more convenient to the borrowers. 5. 80% of the respondent borrowers are happy with the lending procedure & many of them are satisfied with the amount sanctioned by the bank. 6. Most of the respondent borrowers had a very perception regarding the service by the bank.
7. 94% of the respondent borrowers are satisfied with the loan amount

sanctioned by the bank. 8. Government employees who constitute the majority part i.e., 24% out of them again the majority are teachers who draw salary through this bank. 9. That majority of respondent borrowers are taken medium term deposits from the bank. 10. The majority of (52%) respondent borrowers are in need & recommending for the publication of journals / broachers from the bank.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

CONCLUSION
Finally, researcher concludes that the Allahabad Bank , Tumkur is the pioneer in the Tumkur district, which always had the benefit of a very forward looking & progressive leadership. I have no doubt the Allahabad Bank , Tumkur. Will secure a brighter future for itself in the modern banking world of 21st century. I am confident that with the combined endeavors of all its people, & support of all its constituents, the bank will continue to prosper & grow.

I wish the bank, the management & all the respondent borrowers for their glorious future.

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SUGGESTIONS
The each & every activity performed by the Allahabad Bank is excellent. So researcher needs not to give any suggestions, but still there are some programmatic suggestions that I want to be mentioned here. 1. Bank should be increase saving habit of people by providing better information regarding banking by publishing the journals etc. at the branch. 2. There is a need of further more improvement in recycling of credit. 3. In the interest of economic development activity the human resource power has to be increased. The bank should provide the more educational loans for higher education. 4. The bank should increase amount of loan for weaker section group & should enhance the repayment period. 5. During the time of research, it has been noticed that there is more demand for safe deposit lockers.
6. Courtesy costs nothing courteous behavior of staff is also an

important service need to the customers. 7. Un satisfied customers may not complain but they simply switch over to the bank & also spread bad mouth of words in the society about the bank that is why personal attention should be given to each & every customers. 8. It is very difficult to identify the bank staff by customers. So staff should wear an identify badge for easy identification.

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Deposits and Advances in ALLAHABAD Bank, Tumkur

BIBLIOGRAPHY 1. Dr. V.P. Michael: Research Methodology in Management, 5th Edition


Himalaya Publishing House 2000.

2. KPM Sundaram & P N Varshiney : Banking theory - law & practice ,


5th Edition , Sulthan,Chand & Sons , New Delhi 2000

3. Dr. P N Reedy & H R Appannaiah: Theory & practice of banking 4th


Edition Himalaya Publishing House 2000. 4. M .V. Kamath: A people bank, published by the Allahabad bank on eve of Platinum Jubilee Celebration, Manipal. 5. Internet.

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