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PROJECT REPORT on Loans & Advances of Bank of Maharashtra

BY:

ACKNOWLEDGEMENT

Contents
INTRODUCTION ......................................................................................................................................... 4 LOANS & ADVANCES ................................................................................................................................. 4 Basic Concepts ..................................................................................................................................... 4 SCOPE OF STUDY ....................................................................................................................................... 6 NEED OF STUDY......................................................................................................................................... 6 OBJECTIVE .................................................................................................................................................. 7 COMPANY PROFILE ................................................................................................................................... 8 INTRODUCTION ......................................................................................................................................... 8 VISION / MISSION OF ORGANIZATION .................................................................................................... 10 Vision ................................................................................................................................................ 10 Mission ............................................................................................................................................. 10 COMPANY HIERARCHY ............................................................................................................................ 11 Central Level ..................................................................................................................................... 11 Zone Level ........................................................................................................................................ 12 Branch Level ......................................................................................................................................... 12 PRODUCT RANGE ................................................................................................................................. 12 FUTURE PLAN OF THE ORGANIZATION - ................................................................................................. 14

INTRODUCTION
When their is any discussion about the Bank one of the concept strick in our mind is Loans and Advances as it is one of the major concept for todaystimes because many individual need the same to fulfill their major requirements like to buy house or vehicle, to educate their children or to start a new business so on, requirements are end less and also because bankers become the safe money lender for the customers. This takes place because banking sector won the trust of the customer.

LOANS & ADVANCES


Loans and Advances both the term perform the same concept but differently i.e., in both the cases amount are given to the customer by the banker on his demand. Loans Loan is an amount given to the customer against security, mortgage, guaranteeetc., for specific reason to meet their respective needs. The borrower needs to repay it to the banker with certain percentage of principal amount as an interest of loan. EXAMPLE Housing Loan is consider as a loan where the banker will sanctioned the certain amount for loan to the borrower as per IRAC code of conduct against his income statement, guarantor & mortgage provided by him as a security. Advances Advance is the amount paid by the banker to the third party on behalf of borrower usually in case of his failure or other, as an amount of compensation to the third party, which is repaid by the borrower along with certain percentage of principle amount as an interest to the banker. This amount is paid to the third party certain kind of against security of the borrower. Here banker as an guarantor for the borrowers customer or receiver party. EXAMPLE- Education Loan is consider as an advance where the banker pay the fees to the institute on behalf of the borrower and collect the principal amount from the child for whose education the amount is paid but the interest will be collected from borrower .
Basic Concepts

CO- APPLICANT/GUARANTOR - An Individual who promises to pay the borrowed amount to the banker on behalf of the borrower if borrower fails to make the repayment. MORTGAGE Any immovable property like land which is possess by the banker as a security against loan or advance taken by the borrower,for the purpose of securing the payment and can be utilize by the banker for the purpose of collecting the payment if the borrower is fails to made the payment.

HYPOTHECATION- It is the charges of existing movable property which is paid to the banker as a payment against loan or advances without transferring the possession of the property to the bank. Loans &Advances are basically divided into two parts. :LOANS &ADVANCES

Term Laons

Cash Credit

Performing Assets

Non- Performing Assets

Standard Assets

Sub standard Assets

Doubt full Assets

Loss Assets

TERM LOAN It is loan when a repayment period takes palce in a equal period of installment i.e., monthly, quaterly, half yearly or yearly. Usually it monthly or yearly. CASH CREDIT - When banker fails to credit the amount in their respective account from the borrowers accounts through the process of encashment this is usually because of insufficient balance in the borrowers accounts. Basically the further classification is defined by the IRAC (Income Reorganization& Assets Classification): PERFOMING ASSETS Loan is considered as very safe assets when banker receive their full amount without any major risk. It is also known as a standard assets i.e., no risk assets. NON-PERFORMING ASSETS - Whenthere is a risk of repayment of loan from the borrower part then it became NPA. It is basically of three levels : SUB-STANDARD ASSETS It is when assets is non-performing (borrower not repaying) from the period of 3 months to 1 year.
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DOUBTFUL ASSETS - It is when assets is non-performing (borrower not repaying) from the period of more than 1 to 3 year. LOSS ASSETS - It is an assets which is identified by the bank or internal / external auditor or RBI inspection that the amount is not repaying by the borrower from the period of more than 3 year and it is considered as an uncollectable assets. ** Usually bank never wait till the last stage of NPA they start knocking the guarantor from the very first stage of NPA to safe guard their self from the losses.

SCOPE OF STUDY
The study is to make the comparative analysis especially regarding the footfall in the field of Loans & Advances services among all the banks available in the Western Region of the Pune City (Vishrantwadi Area) which become almost third highly competitive area of Pune City. This could be possible by identifying and fulfilling the customers problems and expectations from the bank so that customer can feel that there is a value of their voice which could be take place by questionnaire and also to know about the scheme or strategies taken up by the competitor banks and the customers response on it which could also held through questionnaire.

NEED OF STUDY
The study will primarily helpful for the banker to attract more and more customer for their bank because it became very challenging for them now-a-days due to a very fast establishment of the other banks branches. Secondly it will be helpful for the customer to make the correct choice of the bank among the lot of options so that their reasonably expected services could be positively fulfilled by the bank.

OBJECTIVE
The main objective behind this internship is

1. To learn about the services provided by banking sector to their customer especially in field of Loans & Advances . 2. To understand the problem faced by the bankers as well as customers and also try to get the possible solutions. 3. To analysis the competition taking place between the all branches of different banks present in particular Vishrantwadi Area.

COMPANY PROFILE
INTRODUCTION
The journey of Bank of Maharashtra was begin in 1935 with the motive to build the nation with the group of 10 Board of Director and 9 Promoters. The words of commitment mentioned in the prospectus on 21st Oct, 1935 were successfully achieved which could and could be observed now. Thecommitment was, Steadily to spread its business operations all over Maharashtra and as opportunity allows, outside that area offering varied services to the general public while trying to be useful to trade, commerce and industry consistently with high standards of safety and efficiency After 1936 the operation of expansion and growth follows like this, Sl. No. 1. 2. 3. 4. OCCATION First Second Third Further YEAR OF ESTABLISHMENT 1936 1938 1940 After 1944 - Till 1966 1969 1978 1985 EVENT PUNE FORT, BOMBAY DECCAN GYMKHANA, PUNE First Expansion Outside Maharashtra i.e., in HYDERABAD followed by GOA, MP, GUJARAT Along with other 13 banks in India Inauguration by Prime Minister of India Shri. MORARJI DESAI Operating 500th branches at Mumbai by PM Smt. INDRA GANDHI & Golden Jubilee Celebration By MANMOHAN SINGH Operating 1000th branches at Bibewadi, Pune by VP Dr. SHANKAR DAYAL SHARMA Moved to A category from C category Opened 76 branches which bring the total to 1506

5. 7. 8.

Nationalization Head Office Expansion

9. 10. 11.

Expansion Autonomy Expension

1987 1996 2010

And growth of the organization can be observed through following representation of data.

DEPOSITS (in million)


1200 1000 1000 D E P S I T S 800 600 400 200 0.01 0 1946 1974 1978 1995 2000 2006 2010 Y E A R's 1 5 50 100 500 DEPOSITS (in million)

On 18th Dec 1972 a branch of Bank of Maharashtra was established in Vishrantwadi on the request of the general public with the objective of a social service branch especially for the pension holders.As it is very difficult for people to go the main branch at Shivaji Nagar especially for senior citizens for the purpose of pension. After the establishment of the branch this become the very first bank of this area and now considered as the oldest branch here which carries the highest footfall as compare to its competitors. This branch was set up with a capital of Rs. 5 lakhs and 5 employee including the branch manager to deal with all the crowd of that area.
Till 2006 Bank of Maharashtra was a monopoly leader in the Vishrantwadi area then in 2007 first competitor bank was establish i.e., Andhra Bank then many more nationalize, corporative and certain local or private banks were set up and as on today they are posing a very high competition to each other, specially to Bank of Maharashtra because it is the oldest bank of this area. As on 2012, the following data describes its achievements which are as follows: Footfall per day Total Deposits 1500 people Rs.17,085.18 lakhs Total Staff Total loans & advances 14 members Rs.4,114.04 lakhs

All these achievement could be possible to achieve due to very good management system which are carry on by many great managers and one of them who followed them is Mr. ShaikhEmammUddin 9

.The management system under him is so smooth that result the customer in terms of beneficial and become helpful to attract more and more customer to lead the competition.

Each and every design of logo of the organization indicates its value like The Deepmal With its many lights rising to greater heights. The Pillar Our institution- Symbolizing strength. The Diyas Our Branches- Symbolizing service. The 3 M's symbolizing Mobilization of Money Modernization of Methods and Motivation of Staff.

VISION / MISSION OF ORGANIZATION


Vision

The primary vision of the organization is to make Bank of Maharashtra as the most loveable and best bank of India till 2015. The secondary vision of this organization is To be a vibrant, forward looking, technosavvy, customer centric bank serving diverse and employees value while moving towards global presence.
Mission The primary mission of the organization is to achieve per day Our Target Per Day, Per Branch 4 Saving Bank Account 1 Current Account 1 Housing Loan

The secondary mission of this organization is to achieve the following :-

To ensure quick and efficient response to customer expectations. To innovate products and services to cater to diverse sections of society. To adopt latest technology on a continuous basis. To build proactive, professional and involved workforce. To enhance the shareholders wealth through best practices and corporate governance. To enter international arena through branch network.

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COMPANY HIERARCHY
Central Level Zone Level Branch Level

Central Level

Chairman & Managing Director (CMD)

Executive Director
Chief General Manager (Planning & Corporate Services) Chief General Manager (Credit) Chief General Manager (Legal) Chief General Manager (Staff) Chief General Chief General Manager Manager (Recovery & Credit Monitoring) Monitoring)

Chief General Manager (Micro Credit)

Chief General Manager (Risk Management)

Chief General Manager (Inspection & IQ)

Chief General Manager (Accounts)

Chief General Manager (Virulence)

Deputy General Manager (DGM) Assistant General Manager (AGM) Chief Managing (CM)
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Zone Level

Zonal Manager

Deputy Zonal Manager

Chief Manager

Officers

Staff Members

Branch Level

Branch Manager

Deputy Branch Manager

Officers

Staff Members

PRODUCT RANGE
The product range of bank of Maharashtra is broadly classified into three categories which are as follows :1. Deposits 2. Loans & Advances 3. New Initiative & Third Party Product

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PRODUCT RANGE

DEPOSITS

LOANS AND ADVANCES

NEW INITIATIVE & THIRD PARTY PRODUCT

Saving Account Scheme Current Account Scheme Maha Millionaire Recurring Deposit Scheme Maha Sanchay Systematic Deposit Plan Mahasaraswati Scheme Maha Bank zero Balance Salary Account

Housing Loan Scheme Educational Loan Scheme Vehicle Loan Scheme Personal OR Consumer Loan Loan Scheme for Corporate Loan Scheme For Entrepreneur Maha Bank Gold Card Scheme For Exporter Aadhar Loan Scheme

Technology Product Internet Banking Phone Banking Service SMS Banking Service Maha SwasthyaYojana Insurance Linked Mahalaxmi Term Deposit Scheme Maha GrihSuraksha Maha Suraksha Deposit Scheme SBI-BOM International Credit Card Govt. Business ePayment of Taxes Mutual Fund Business On-Line Trading OR De mat Account

There are so many service provided by Bank of Maharashtra e.g., 36 kind of loan. But these all are the major services offered to the customers by Bank of Maharashtra on which mostly very high amount of transaction usually takes place and these product make very large contribution in term of generating profit for the organization.

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FUTURE PLAN OF THE ORGANIZATION -

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