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A
Practical Training Report
ON
Analyze of Loan Assessment Process
Undertaken at
JAIPUR
Submitted in partial fulfilment for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
2010-11
SUBMITTED TO: SUBMITTED BY:
UNIVERSITY OF RAJASTHAN ANIL KUMAR SHARMA
B.B.A. 3rd YEAR
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VIDYASHTALI INSTITUTE OF TECHNOLOGY, SCIENCE &
MANAGEMENT, JAIPUR
Preface
Finance acts as a tool against all products determine which targets the organization can serve best,and designs appropriate role of mass marketing and advertising and disconcerting erosion of brand
loyalty.
these drastic Finance is the business function that identifies financial functions and products,
services and programs to serve these markets. However, finance is much more than just an isolated
business functioning- it is the philosophy that guides the entire organization. technologicalchanges, we are witnessing a power shift, from manufacturing to giant retailers, a rapid growth and
acceptance of store brands, new retails forms rowing consumers .
Todays markets are changing at an incredible pace. In addition to globalization and price andvalue sensitivity, a diminishing changes. Finance is an orderly and insightful process for thinking
about planning for market.
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Acknowledgement
Summer training is one of the most vital and active part of the curriculum of management students.Its basic idea behind this is to strengthen the students concept through practical training and make
them acquainted with actual method and procedures. I did the work as a management trainee at
AXIS Bank Limited for a period of six weeks starting from 18th May, 2010.
I would like to extend my heartfelt gratitude to Mr. Navneet Rally Branch Manager, for his proper
guidance throughout the project. Without his support and cooperation I would have failed in my
endeavours and targets in the summer training.
(Anil Kumar Sharma)
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EXECUTIVE SUMMARY
The financial year 2007-08 will be remembered as a year of transformation in the history of the
Bank, when the name of the Bank changed to Axis Bank from UTI Bank. The conviction that itwas worthwhile to invest in building a brand that would solely be our own helped to create a
distinct id entity. The name Axis Bank connotes solidity and transcends geographical boundaries
as we seek to become a multinational bank. The Bank was successful in establishing a new
identity in the market in a short span of time. The Bank once again met with considerable successover the past year and achieved all its key objectives. This encouraging performance not only
underscored the sustain ability of the Banks high tempo of growth, but also helped to move closerto its objective of being one of the more customer-focused banks in the country. This is reflected
in the robust growth in both business and revenue during 2007-08 and in various financial
parameters. During 2007-08, the Bank's business and earnings continued to show high growth,indicative of a clear strategic focus, the communication of corporate priorities to branches across
the country, and finally the execution of these goals through intensive efforts. The Bank reported a
net profit of Rs. 1,071.03 crores during the year ended 31st March 2008, up 62.52%, from Rs.
659.03 crores in the previous year. Diluted earnings per share (EPS) were Rs.31.31 per share, up37.38 % from Rs. 22.79 per share a year earlier. Return on Equity (ROE) was 16.09% compared
to 21.84% a year earlier. The decline in ROE was primarily on account of the raising of fresh
equity capital during the financial year. Return on Average Assets was 1.24%, compared to 1.10%in the previous year.
In 2007-08, the Bank achieved a total income of Rs. 8,800.80 Crores, up 60.84 % from 2006-07.During this period, operating revenue was Rs. 4,380.84 crores, up 76 .76% from the previous year,
while operating pro fit was up by 76.12% to reach Rs.2,225.92 crores. The strong growth in
income was largely driven by a strong increase in both net interest income by 76.07% to Rs.
2,585.35 crores, and fee and other income by 77.75% to Rs. 1,795.49 crores. The strong incomegrowth reflects the solid business growth across all banking segments and the successful execution
of growth initiatives. The strong growth in incomes was partly offset by an increase in operating
expenses, including depreciation, by 77.42% to Rs. 2,154.92 crores. The increase in operatingexpenses primarily reflects the higher costs incurred as a result of increased business levels that
include additional sales and service personnel and higher variable compensation. Additional
expenses incurred to support the growth initiatives of the Bank (including network expansion aswell as the re-branding exercise) also contributed to the increase in operating expenses.
As a conscious strategy of building an organic growth engine during the year, the Bank continued
to expand it s distribution network, in both domestic and oversea s geographies, to enlarge its reach
and accelerate its business momentum. The Bank has developed a branch network which is built
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on customer-convenience and service, helping it particularly in the acquisition of low-cost retail
deposits, retail assets, lending to agriculture, SME and mid-corporate and facilitating the cross-
selling of third-party products.
CONTENTS
Serial
No.
Particular
1.
Introduction to Banking Industry
Early History
Nationalized Bank In India
Private Sector bank In India
2.About Company: AXIS BANK
Retail Banking
Corporate Banking
3.Credit Policy/ Easy Credit Card
4.Loan Assessment
1.Home Loan
2. Personal Loan
3.Loan Against Property
4.Auto Loan
5. Agriculture Loan
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5. Recommendations & Suggestions
Objective of Study
Scope of Study
Importance of Study
Facts & Findings
6. Research Methodology
KYC(Know Your Customer) Guideline
7. Conclusion
8. SWOT Analysis
9. Questionnaire
10. Bibliography
1.INTRODUCTION TO BANKING INDUSTRY
Banking In India: Overview:
Banking in India originated in the first decade of 18th century. The first banks were The General
Bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The
oldest bank in existence in India is the State Bank of India, which originated in the "The Bank ofBengal" in Calcutta in June 1806. This was one of the three presidency banks, the other two being
the Bank of Bombay and the Bank of Madras. The presidency banks were established under
charters from the British East India Company. They merged in 1925 to form the Imperial Bank of
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India, which, upon India's independence, became the State Bank of India. For many years the
Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India
formally took on the responsibility of regulating the Indian banking sector from 1935. After India'sindependence in 1947, the Reserve Bank was nationalized and given broader powers.
Early History:
The first fully Indian owned bank was the Allahabad Bank, established in 1865. However, at theend of late-18th century, there were hardly any banks in India in the modern sense of the term. The
American Civil War stopped the supply of cotton to Lancashire from the Confederate States.
Promoters opened banks to finance trading in Indian cotton. With large exposure to speculative
ventures, most of the banks opened in India during that period failed. The depositors lost moneyand lost interest in keeping deposits with banks. Subsequently, banking in India remained the
exclusive domain of Europeans for next several decades until the beginning of the 20th century.
Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoired'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862;
branches in Madras and Pondicherry, then a French colony, followed. Calcutta was the most active
trading port in India, mainly due to the trade of the British Empire, and so became a bankingcentre.
The Bank of Bengal, which later became the State Bank of India.
Around the turn of the 20th Century, the Indian economy was passing through a relative period of
stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial andother infrastructure had improved. Indians had established small banks, most of which served
particular ethnic and religious communities.
The presidency banks dominated banking in India. There were also some exchange banks and anumber of Indian joint stock banks. All these banks operated in different segments of the economy.
The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian
joint stock banks were generally under capitalized and lacked the experience and maturity to
compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe,"In respect of banking it seems we are behind the times. We are like some old fashioned sailing
ship, divided by solid wooden bulkheads into separate and cumbersome compartments."
By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank,in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under
private ownership. Punjab National Bank is the first Swadeshi Bank founded by the leaders like
Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in particular inspired local
businessmen and political figures to found banks of and for the Indian community. A number ofbanks established then have survived to the present such as Bank of India, Corporation Bank,
Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.
Nationalized Banks in India:
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Banking System in India is dominated by nationalized banks. The nationalization of banks in India
took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind
nationalization was to spread banking infrastructure in rural areas and make available cheapfinance to Indian farmers. Fourteen banks were nationalized in 1969. Before 1969, State Bank of
India (SBI) was the only public sector bank in India. SBI was nationalized in 1955 under the SBI
Act of 1955. The second phase of nationalization of Indian banks took place in the year 1980.Seven more banks were nationalized with deposits over 200 crores.
List of Public Sector Banks in India is as follows:
Allahabad Bank State Bank of India (SBI)
State Bank of Indore State Bank of Mysore
State Bank of Patiala State Bank of Saurashtra
State Bank of Travancore Syndicate Bank
UCO Bank Union Bank of India
United Bank of India s Vijaya Bank
Andhra Bank Bank of Baroda
Bank of India Bank of Maharashtra
Canara Bank Central Bank of India
Corporation Bank Dena Bank
Indian Bank Indian Overseas Bank
Oriental Bank of Commerce Punjab and Sind Bank
Punjab National Bank State Bank of Bikaner & Jaipur State Bank of Hyderabad
Private Banks in India:
All the banks in India were earlier private banks. They were founded in the pre-independence era
to cater to the banking needs of the people. But after nationalization of banks in 1969 public sectorbanks came to occupy dominant role in the banking structure. Private sector banking in Indiareceived a fillip in 1994 when Reserve Bank of India encouraged setting up of private banks as part
of its policy of liberalization of the Indian Banking Industry. Housing Development Finance
Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from theReserve Bank of India (RBI) to set up a bank in the private sector.
Private Banks have played a major role in the development of Indian banking industry. They have
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made banking more efficient and customer friendly. In the process they have jolted public sector
banks out of complacency and forced them to become more competitive.
List of Private Sector Banks in India is as follows:
1Bank of Rajasthan Bharat Overseas Bank
2Axis Bank Catholic Syrian Bank
3Centurion Bank of Punjab Dhanalakshmi Bank
4Federal Bank HDFC Bank
5ICICI Bank IDBI Bank
6IndusInd Bank ING Vysya Bank
7Jammu & Kashmir Bank Karnataka Bank
8Karur Vysya Bank Kotak Mahindra Bank
2SBI Commercial and International South Indian Bank
Bank UTI Bank
9United Western Bank10YES Bank
2.About Company : AXIS BANK
Start on 1994
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On July 2007 UTI Bank rebrand as Axis Bank
Promoters:
Unit Trust Of India (UTI)
Life Insurance Corporation (LIC)
General Insurance Corporation (GIC)National Insurance Company Limited
New India Assurance Company Limited
The Oriented Insurance Company Limited
United India Insurance Company Limited
Capitalization:
359 crore
Public Holding = 57.60%
Registered Office:
Ahmadabad
Central Office:
Mumbai
Total Branches:
827
ATM:
3595
Bank Strengths:
Retail Banking
Corporate Banking
Directors:
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Shri N.C. Singhal Director Shri J.R. Varma Director
Dr. R.H. Patil Director
Smt. Rama Bijapurkar Director
Shri R.B.L. Vaish Director Shri M.V. Subbiah Director
Shri Ramesh Ramanathan Director
Shri K. N. Prithviraj Director
Auditors:
M/s. S. R. Batliboi & Co. Auditors Chartered Accountants
Registrar and Share Transfer Agent:
M/s. Karvy Computershare Private Limited
Axis Bank is one of the fastest growing banks in the country and has an extremely competitive andprofitable banking franchise evidenced by:
Competitor:
Private Sector competitor:
HDFC
ICICI
Public Sector competitor:
SBI
PNB
Profile:
Comprehensive portfolio of banking services includes Corporate Credit, Retail Banking, Business
Banking, Capital Markets, Treasury and International Banking.
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The Position as on 31st March 2009 was as under: -
Balance Sheet Size Rs 1,47,722 crore
Total Deposits Rs 1,17,374crore
Net Advances Rs 81,557 crore
Investments Rs 46,330 crore
Net NPA 0.35%
Capital Adequacy Ratio 13.69% %
Axis Bank has in place a sound technological platform:
Sound technological platform with centralized database and operations enabling 24*7*365Anywhere Banking, in order to render the best customer service to its 5.5 million customer base.
Mission and Values:
1Customer Service and Product Innovation tuned to diverse needs of individual and corporateclientele.
2Continuous technology up gradation while maintaining human values.
3Progressive globalization and achieving international standards.
4Efficiency and effectiveness built on ethical practices.5Customer Satisfaction through
6Providing quality service effectively and efficiently
7"Smile, it enhances your face value" is a service quality stressed on8Periodic Customer Service Audits
9Maximization of Stakeholder value
10Success through Teamwork, Integrity and People
Vision:To be the preferred financial solutions provider excelling in customer delivery through
insight, empowered employees and smart use of technology
Retail Banking:
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The Bank continued with its thrust on customer segmentation in the retail liabilities business to
spearhead growth during the financial year 2008-09. Savings Bank deposits grew to Rs. 25,822
crores on 31st March 2009 from Rs. 19,982 crores as on 31st March 2008 showing a year on yeargrowth of 29%.
The Priority-Banking offering of the Bank has led the growth in the Savings Bank deposits. Othersavings products, especially those for senior citizens, for women and for NRIs have contributed
strongly to the overall growth of the savings bank deposits.
Savings Bank Product Growth in Savings
Bank Balances
Growth in number of
Accounts
Priority Banking (High Net
worth)
100% 108%
Savings Accounts forTrusts
133% 39%
Savings Accounts for NRI 262% 80%
Senior Privilege (Affluent
Senior Citizens)
29% 46%
Smart Privilege (Savings
Accounts for Women)
73% 50%
Salary Power (Pay Roll
Account)
38% 28%
Easy Access (Base SavingsBank Account)
49% 26%
Corporate Banking:
The Business Banking Department (erstwhile Institutional Business Department) was set up in the
year 2000, with the objective of having a special cell to serve the institutional and corporate
clientele of the Bank. Business Banking initiatives revolve around transaction banking services togarner Business Current Accounts, Cash Management Service mandates, Government Business -
Collection & Payment Services. As a natural corollary, scope of the business was extended this
year to Business loans for Small Businesses so that all product and services to small business
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enterprises are comprehensively made available.
The Department presently focuses on the four broad areas through the
respective Business Groups, as under:
Business Current Accounts
Business AssetsCash Management Services
Government Business
Corporate Credit:
Current Account deposits grew by 24% yoy, from Rs. 20,045 crores as at end March08 to Rs.
24,822 crores as at end March09. The daily average Current Account balances over the year grewby 24% yoy. The Corporate Credit portfolio of the Bank comprising advances to large and
midcorporates grew by 68.33% to Rs. 29,026 crores from Rs. 17,244 crores a year ago. Thisincludes advances at overseas branches amounting to Rs. 5,381 crores (equivalent to USD 134
million) comprising in main the portfolio of Indian corporates and their subsidiaries, as also trade
finance. Credit exposures are taken based on risk analyses and mitigation measures, with proposalsbeing subjected to critical scrutiny by the Bank's Risk Department. Efforts are made to constantly
upgrade the skills required for faster turnaround of credit proposals and structuring of financial
products. In addition to working capital loans, the Bank also takes long-term exposures toinfrastructure and manufacturing projects set up by reputed industry groups. Relationship groups in
the Bank are organised with an industry sector focus for better evaluation of specified risks. The
credit policy of the Bank has also put in place ceilings on exposures to various industries with aview to containing concentration risk and facilitating portfolio diversification.
AXIS Banks Current Accounts:
The basic product for mobilizing such deposits is a Current Account. The Bank offers a range of
current account products to meet the needs of the various customer segments such as Small
Enterprises, Trade, Exporters, Corporate and institutions. The various Current Accounts offered bythe Bank are:-
Hospitality Current Normal Current AccountBusiness Advantage Account
Business Classic Account
Business Privilege AccountChannel One
Current Account for Govt Organisations
Current Account for Banks
Current Account for Builders & Real Estate
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Capital Market Current Account
Krishi Current Account
Business Global Current AccountClub 50 Current Account
Shipping and Maritime Current Account
Inland Road Transport Current AccountTravel, Tourism and Account
3.Credit Policy/Easy Credit Card
What is Easy Credit Card?
A Credit Card that is...Easy for customers to get!
Easy for us to sell!
Why is it Easy for the Customer?
1Flexible Credit Limit (Up to 80% of the FD amount)
2High Cash Withdrawal Facility
3Minimum Documentation (No Income Proof/KYC required)4Fast Delivery of the Card
5Substantially Lower Interest Rate of 1.95% p.m.
6Guaranteed Approval7Free Credit Period of 20-50 days
8Comprehensive Insurance
9Attractive Reward Points
10Other benefits of a regular credit card
Easier than Other Modes of Payment
Easier than Other Credit Cards
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Guaranteed ApprovalNo Income Proof required
Lower interest rate
Credit Limit of choice
Higher Cash withdrawal facility
Easier than Debit Cards
Interest free credit period of up to 50 days
Higher Insurance PackageEase of Online & MOTO transactions
Easier than O/D against FD
Interest free credit period of up to 50 days
Reward PointsComplimentary Insurance
Record of transactions
Easier than Cash
Convenience of PlasticComplimentary Insurance
Reward Points
Record of transactions
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Variants:
Available in three variants:
Easy Platinum Premium (In sourcing locations only)
Easy Platinum
Easy Gold
Pricing:
Type Joining Fee Annual Fee* Annual Fee Waiver
for Year 2
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Platinum
Premium 5,000 1,000
Customer Spends
> Rs. 2,00,000 in Year 1
Platinum 1,000 500Customer Spends
> Rs. 2,00,000 in Year 1
Gold Nil100 (Year 2onwards)
Customer Spends
> Rs. 50,000 in Year 1
* Annual Fee can be adjusted against Reward Points
4.Loan Assessment
Loan assessment means to evaluate that To whom i.e. customer, we are providing loan and Is
he able to repay it or not. After analyzing the criteria standardised by the company and also which
is listed below company decide the amount which is to be provide to customers.
Loan Types:
Home loan
Personal Loan
Loan against PropertyAuto loan
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Agriculture Loan
Home Loan:
Home Loan
Criteria Salaried Individual ProfessionalsSelf Employed
Individuals
Min. work exp
(Yrs)2 (3 if current emp
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Min net income
(Rs.)15000pm 1.50 lacs pa
Min ~ Max age
(Yrs)
>24 ~ 24 ~
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Photograph
Proof of Residence:
Ration CardPassport
Latest Electricity Bill
Latest Telephone BillLatest Credit Card Bill.
Proof of Income:
Latest 3 salaries slip showing all deductions
IT ReturnsComputation of income
Balance Sheet and P/L A/c for the last 2 years certified by a C.A.
Bank Statement:
Last 6 months where salary/income is credited
Proof of Qualification:
Degree / Diploma - proof of professional qualification
Interest Rate:
Home loan amount Applicable rate of interest
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Up to Rs. 20 Lacks 11.00% p.a.
Above Rs. 20 Lacks 11.25% p.a.
Other terms & conditions:
The property should be located within 50 Km radius of nearest Branch/RAC. Properties under
HUF, Properties inherited under Hindu succession act, Godowns, Factories & Hospitals, CinemaHalls, Restaurants, Banquet Halls, and Schools will not be financed under the scheme. For
Purchase of Residential Plots within Municipal / Government approved layouts only Agricultural
land, commercial plots, properties under HUF, properties inherited under Hindu succession act,
plots under litigation and acquisition by Public authorities will not be financed under plot loan
scheme. Loan against property (LAP) will be offered only against fully constructed properties.
Personal Loan:
For Salaried Individual:
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Criteria Salaried Individual Normal
Interest rate as per
category
As per category grid
Min. work exp (yrs) 1
Min net income
(Rs. p.m.)15,000
Min ~ Max age > 21 & < superannuation at loan termination
Min ~ Max loan amt
(Rs.)
1- 10 lakes (1 lakes loan is only available for customers having
salary power relationship)
Min ~ Max Tenor
(months)
12 ~ 60 (For CAT C and D employees maximum tenor is 48
months)
Security / Collateral /
GuarantorOptional
Cat A & B - Last 3 months
Cat C & D - Last 6 mths
Phone landline / mobile / WLL mandatory
Processing fee 2% of loan amt
Eligibility calculationMax loan = (Net monthly income - obligations) x Multiplier.
Multiplier varies from 5 to 13 depending upon tenure.
Present residence => 6 months
if < 6 months, then it should be company provided, own house,
transfer case or else local guarantor mandatory.
Permanent Residence (PR) proof mandatory (a) For Bachelor /
spinster staying alone, FI of PR if RAC is present or Tele
verification. (b) For all loan cases > Rs. 3 lac
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CriteriaSalaried Individual Prof (MBA, Engineer, Architect,
CA, CS, ICWA)
Interest rate as per
categoryAs per category grid
Min. work exp (yrs) 1
Min net income
(Rs. p.m.)15,000
Min ~ Max age > 21 & < superannuation at loan termination
Min ~ Max loan amt
(Rs.)
1 - 15 lac (1 lakh loan is only available for customers having salary
power relationship)
Min ~ Max Tenor
(mths)12 ~ 60
Security / Collateral /
GuarantorOptional
Cat A & B - Last 3 mths
Cat C & D - Last 6 mths
Phone
landline / mobile / WLL mandatory
Processing fee 2% of loan amt
Eligibility calculation
Max loan =(Net monthly income - obligations) x Multiplier.
Multiplier varies from 5 to 15 depending upon tenure.
Present residence => 6 months
if < 6 months, then it should be company provided, own house,
transfer case or else local guarantor mandatory.
Permanent Residence (PR) proof mandatory (a) For Bachelor /
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spinster staying alone, FI of PR if RAC is present or Tele
verification. (b) For all loan cases > Rs. 3 lac
Degree / Diploma - proof of professional qualification`
Criteria Salaried Doctors
Interest rate as per
categoryDoctor in Cat B/C/D at a min of MBBS/BDS/ MS/MD = Cat B rate
Min. work exp (yrs) 3
Min net income(Rs. p.m.)
15,000 (gross)
Min ~ Max age >24 and 6 months
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if < 6 months, then it should be company provided, own house,
transfer case or else local guarantor mandatory.
Permanent Residence (PR) proof mandatory (a) For Bachelor /
spinster staying alone, FI of PR if RAC is present or Tele
verification. (b) For all loan cases > Rs. 3 lac
Proof of QualificationDegree, Registration with respective state medical councils Or
Dentists Association.
For Self Employed Individual:
Criteria Self Employed Doctors
Interest rate as per
categoryCat A rate
Min. work exp (yrs) 2
Min net income
(Rs. p.m.)
Business has to be profitable for last 2 yrs with min gross
receipt of Rs. 2.4 lac p.a. for large RAC & Rs.1.8 lac p.a. for
smaller RAC
Min ~ Max age >24 and
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Eligibility calculation
Max loan= 0.6 Times annual gross receipts or 6 times eligible
annual income. Eligible income= Avg of last two yrs' NP and
Dep less obligations.
Residence
Present residence => 12 months
if < 12 months, then it should be parents or own house.
Same as salary customer and 3rd Party Guarantor manadot
Spinster
Processing fee 2% of loan amt
Proof of QualificationDegree, Registration with respective state medical councils Or
Dentists Association.
CriteriaSelf Emp. Prof. (MBA, Engineer, Architect, CA, CS,
ICWA)
Interest rate as per
categoryAs per category grid
Min. work exp (yrs) 3
Min net income(Rs. p.m.)
Min. annual eligible income Rs. 1, 50,000 p.a. for larger locations& for others Rs. 1,00,000 p.a.
Min ~ Max age >24 and
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summation of all credits and debits.
PhoneLandline/ mobile/ WLL at res. & off. If of own house, then off. &
res. can be same
Banking relationships Last 6 mths
Eligibility calculation Max loan= Eligible income x Multiplier of max 5. Eligible income=Avg of last two yrs' NP and Dep less obligations.
Residence
Present residence => 12 months
if < 12 months, then it should be parents or own house.Same as salary customer and 3rd Party Guarantor manadot
Spinster
Processing fee 2% of loan amt
Proof of Qualification Degree / Diploma - proof of professional qualification
Employment Proof
Shops & Establishments Act Certificate
SSI registration certificate
Sales Tax Certificate
Lease/rental agreement for the commercial property from
where the business is operated.
Any other proof in the form of
licenses/certificates/challans/bills, etc from a Government
agency.
Criteria Self Employed Normal (Indv. & Sole Prop)
Interest rate as per
category
As per category grid
Min. work exp (yrs) 3
Min net income
(Rs. p.m.)Min. annual eligible income of Rs. 2 lac
Min ~ Max age >24 and
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Min ~ Max loan amt
(Rs.)1.25 lacs - 15 lac
Min ~ Max Tenor
(mths)12 ~ 48
Security / Collateral /
Guarantor Optional
Banking relationships
Last 6 months. Average bank balance for past 6 months should be
greater than or equal to 1.5 times of proposed EMI. Average
monthly balance as of 1st, 10th and 30th of the month. Minimum
10 entries for large RACs and 5 entries for all other ACs/Branches
(where RAC is not present), in banking in each of the past 6
months. Entries in a month are to be counted as a summation of all
credits and debits.
`Phone
Landline/ mobile/ WLL at res. & Office. If own house, then office
& res. can be same
Eligibility calculationMax loan= Eligible income x Multiplier max 2.5. Eligible income=
Avg of last two yrs' NP and Dep less obligations.
Residence
Present residence => 12 months
if < 12 months, then it should be parents or own house.
Same as salary customer and 3rd Party Guarantor manadot
Spinster
Processing fee 2% of loan amt
Employment Proof
Business Continuity Proof of last 2 years, documents such as:
Shops & Establishments Act Certificate
SSI registration certificate
Sales Tax Certificate
Lease/rental agreement for the commercial property from where
the business is operated.
Any other proof in the form of licenses/certificates/challans/bills,
etc from a Government agency.
Documentation:
DOCUMENTS REQUIRED
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Proof of Identity,
Signature & AgePassport/ Voter's Card/ Driving License/ PAN card & Photograph.
Proof of Telephone
Bill
Latest bill of landline/ mobile/ WLL stating name of borrower or
address of borrower.
Proof of ResidenceRation Card/ Passport/ Latest Electricity Bill/ Latest Telephone Bill/
Latest Credit Card Bill.
Proof of Income
Latest salary slip showing alldeductions and Last 2 years
Form 16 along with current
dated salary certificate
IT Returns for the last 2 years and
Computation of income for the last 2
years certified by a CA, For Docs
only - Balance Sheet, Profit & Loss
Statement.
Bank Statement / Pass
Book where salary is
Credited
Cat A & B - Last 3 months,
Cat C & D - Last 6 monthsLast 6 months
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INTEREST RATE GRID
PERSONAL LOANS ROI (only Fixed)
Salaried - Cat A 16.00%
Salaried - Cat B 19.00%
Salaried - Cat C
22.50%
Salaried - Cat D23.50%
Doctors Self Employed16.00%
Self Employed
Professional (SEP)
19.00%
Self Employed Non
Professional
- Income > Rs.2 lacs up
to Rs.3 lacs
20.50%
- Income > Rs.3 lacs 19.50%
Salary Power
-Corporate Relationship
PSU
18.00%
Salary Power
-Corporate Relationship
Others
0.50% lower than new category wise rates
Priority Customers 0.25% lower than new category wise rates
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Power Salute Customers 17.00%
PL to existing HL
borrowersAt Mortgage Reference Rate - currently 14.25%
Self Employed Doctors& Salaried Doctors in
CAT-A company
14.00% (no Prompt Payment Discount offered)
Special offer for
customers of 50
companies
14.50% (no Prompt Payment Discount offered)
NOTE: The information given is indicative. Please refer to policy guidelines & circulars
for details.
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Loan against Property:
Criteria Salaried Individual
Work exp (Yrs) min 1 yr if total exp 2 or (3 if current emp 24 ~
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Criteria Professionals
Work exp (Yrs) min 3 if Doctor else 4
Min net income (Rs.) 1.00 lacs pa
Min ~ Max age (Yrs) >24 ~
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Criteria Self Employed Individuals
Work exp (Yrs) min 3
Min net income (Rs.) 1.00 lacs pa
Min ~ Max age (Yrs) >24 ~
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Documents required for Loan against property:
For Salaried Individual:
Proof of Identity, Signature
& Age
Passport/ Voter's Card/ Driving License/ PAN card &
Photograph.
Proof of ResidenceRation Card/ Passport/ Latest Electricity Bill/ Latest Telephone
Bill/ Latest Credit Card Bill.
Proof of Income Latest 3 salary slip showing all deductions
Bank Statement Last 6 months where salary/income is credited
Proof of Qualification N/A
For Professionals:
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Proof of Identity, Signature
& Age
Passport/ Voter's Card/ Driving License/ PAN card &
Photograph.
Proof of Residence
Ration Card/ Passport/ Latest Electricity Bill/ Latest Telephone
Bill/ Latest Credit Card Bill.
Proof of IncomeIT Returns, Computation of income, Balance Sheet and P/L
A/c for the last 2 years certified by a C.A.
Bank Statement Last 6 months where salary/income is credited
Proof of QualificationDegree / Diploma - proof of professional qualification
For Self Employed Individuals:
Proof of Identity, Signature
& Age
Passport/ Voter's Card/ Driving License/ PAN card &
Photograph.
Proof of ResidenceRation Card/ Passport/ Latest Electricity Bill/ Latest Telephone
Bill/ Latest Credit Card Bill.
Proof of IncomeIT Returns, Computation of income, Balance Sheet and P/L A/c
for the last 2 years certified by a C.A.
Bank Statement Last 6 months where salary/income is credited
Proof of QualificationN/A
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Other terms & conditions:
The property should be located within 50 Km radius of nearest Branch/RAC. Properties under
HUF, Properties inherited under Hindu succession act, Godowns, Factories & Hospitals, Cinema
Halls, Restaurants, Banquet Halls, and Schools will not be financed under the scheme. ForPurchase of Residential Plots within Municipal / Government approved layouts only Agricultural
land, commercial plots, properties under HUF, properties inherited under Hindu succession act,
plots under litigation and acquisition by Public authorities will not be financed under plot loan
scheme. Loan against property (LAP) will be offered only against fully constructed properties.No LAP will be offered against plot of land
Auto Loan:
Criteria Salaried
AgeMin 21 years at sanction to Maximum 58 years at the time of
loan maturity
Loan amount Minimum Rs. 100,000
Tenure 1 - 7 yrs
LTV Up to 85% of On road price*
Income NormsGross Salary of Rs. 1 Lac p.a. for Cat A/B cars & Rs 2 Lacs p.a.
for Cat C/D cars
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Work-experience Minimum 2 years of total employment
Telephone Landline / WLL phone at Residence. In case no phone at Resi.Post-paid mobile connection with Resi. Add. Required.
Foreclosure
Foreclosure < 6 months - 10% on principal outstanding charged,
if > 6 months - 5% of principal outstanding,
No part prepayment allowed
Processing Fee
Minimum of Rs 2500 for CAT A cars, Rs. 3000 for Cat B & C
Cars and Rs 3500 for Cat D cars (plus upto 1% of the loan
amount at the discretion of the Branch Manager)
Eligibility calculation3 times of annual gross or 30 times of avg net salary of 3
months. EMI must not exceed 50% of net salary
Criteria Self-Employed
AgeMin 21 years at sanction to Maximum 65 years at the time of
loan maturity
Loan amount Minimum Rs. 100,000
Tenure 1 - 7 yrs
LTV Up to 85% of On road price*
Income Norms
Gross Income of Rs. 60,000 p.a. for Cat A/B cars & Rs 1 Lac
p.a. for Cat C/D cars (Gross Income : N.P after Tax &
Depreciation)
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Work-experience Minimum 3 years in business
TelephoneLandline / WLL phone at Residence. In case no phone at Resi.
Post-paid mobile connection with Resi. Add. Required.
Foreclosure
Foreclosure < 6 months - 10% on principal outstanding
charged, if > 6 months - 5% of principal outstanding,
No part prepayment allowed
Processing Fee
Minimum of Rs 2500 for CAT A cars, Rs. 3000 for Cat B & C
Cars and Rs 3500 for Cat D cars (plus upto 1% of the loan
amount at the discretion of the Branch Manager)
Eligibility calculation6 times Gross Income p.a. (Gross Income = Net Profit + 50% of
Depreciation for the last financial year.)
Criteria Partnership Firms
AgeMin 21 years at sanction to Maximum 58 years at the time of
loan maturity for loan executing partner.
Loan amount Minimum Rs. 100,000
Tenure 1 - 7 yrs
LTV Up to 85% of On road price*
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Income Norms
Gross Income of Rs. 60,000 p.a. for Cat A/B cars & Rs 1 Lac
p.a. for Cat C/D cars (Gross Income: N.P after Tax &
Depreciation). Min Turnover of Rs 4.5 Lacs
Work-experience Minimum 3 years in business
Telephone
Landline / WLL phone at Resi. & Office for loan executing
partner. In case no phone at Resi., post-paid mobile connection
with Resi. Address is required
Foreclosure
Foreclosure < 6 months - 10% on principal outstanding charged,
if > 6 months - 5% of principal outstanding,
No part prepayment allowed
Processing Fee
Minimum of Rs 2500 for CAT A cars, Rs. 3000 for Cat B & C
Cars and Rs 3500 for Cat D cars (plus upto 1% of the loan
amount at the discretion of the Branch Manager)
Eligibility calculation
6 times Gross Income p.a. (Gross Income = Share in Profit +
Salary + Interest on Capital + 50% of Depreciation for the last
financial year) (to the extent of his Share in Partnership)
Criteria Private & Public Ltd. Companies
Age
Min 21 years at sanction to Maximum 65 years at the time ofloan maturity for the loan executing director/authorized
signatory
Loan amount Minimum Rs. 100,000
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Tenure 1 - 5 yrs
LTV Up to 85% of On road price*
Income NormsMin Turnover of Rs. 2 Crore and Minimum Net Profit of Rs 50Lacs. (No Cash Loss in the last 2 yrs)
Work-experience Minimum 3 years in business
Telephone
Landline / WLL phone at Resi. & Office for loan executing
director/authorized signatory. In case no phone at Resi., post-
paid mobile connection with Resi. Address is required
Foreclosure
Foreclosure < 6 months - 10% on principal outstanding charged,
if > 6 months - 5% of principal outstanding,
No part prepayment allowed
Processing Fee
Minimum of Rs 2500 for CAT A cars, Rs. 3000 for Cat B & C
Cars and Rs 3500 for Cat D cars (plus upto 1% of the loan
amount at the discretion of the Branch Manager)
Eligibility calculation 6 times Avg. Net Profit of the Last 2 Years
Documents required:
For Salaried:
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Proof of IdentityPassport / Voters Card / Driving License with Photograph/
PAN card
Proof of Income
Latest salary slip showing all deductions AND Latest Form 16 /
Income Tax Return (Form 16 FYE March should be availableJune onwards)
Address Proof (of the
residing city)
Ration Card/Latest Electricity Bill/Latest Telephone
Bill/Passport/Latest Credit Card Bill/ Driving License
Signature VerificationPassport copy/ Driving License with Photograph/ Bankers
Verification
AdditionalDocumentation
NA
For Self-Employed:
Proof of IdentityPassport / Voters Card / Driving License with Photograph/
PAN card
Proof of Income Latest Income Tax Return and Computation of income
Address Proof (of the
residing city)
Ration Card/Latest Electricity Bill/Latest Telephone
Bill/Passport/Latest Credit Card Bill/ Driving License
Signature VerificationPassport copy/ Driving License with Photograph/ Bankers
Verification
AdditionalDocumentation
Declaration from Proprietor
For Partnership Firms:
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Proof of Identity
Copy of Partnership Deed & the following documents required
for the loan executing partner: Passport / Voters Card / Driving
License with Photograph/ PAN card
Proof of IncomeAudited Balance Sheet, Profit & Loss Account for last 2 years
along with the latest 2 Income Tax Returns
Address Proof (of the
residing city)
Telephone Bill/Electricity Bill/ Shop & Establishment Act
Certificate/ SSI Registered Certificate/ Sales Tax Certificate
Signature Verification
Bankers Verification
Additional
DocumentationAuthority letter signed by all partners
For Private & Public Ltd. Companies:
Proof of Identity
Copy of Memorandum & Articles of Association & the
following documents required for the loan executingdirector/authorized signatory. Passport / Voters Card / Driving
License with Photograph/ PAN card
Proof of Income Last 2 Years Audited Financials
Address Proof (of the
residing city)
Telephone Bill/Electricity Bill/ Shop & Establishment Act
Certificate/SSI Registered Certificate/ Sales Tax
Certificate/PAN No.
Signature Verification Bankers Verification
Additional
Documentation
List of Directors, Share Holding pattern, Copy of Board
Resolution
On Road Price = Ex Showroom rate + Insurance + Road Tax + Registration
charges
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Interest Rate Grid
CAR
CATEGORYUpto 35 months 36 - 60 months > 60 84 months
CAT A 13.00% 13.00% 13.50%
CAT B 13.00% 12.75% 13.50%
CAT C 13.00% 12.75% 13.50%
CAT D 13.00% 12.50% 13.50%
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Agricultural Loan:
Financing farmers against pledge of warehouse or cold storage receipts:
Facility limit Ceiling of Rs. 5.0 lac per farmer
Nature of facility
Loan against the pledge of warehouse and/ or cold storage
receipts
Eligibility for farmers
Original depositors of the receipts. The borrower to undertake
that he is a farmer and also to provide a declaration to the effect
that he/she is not defaulter to any Bank/Financial Institution
Designated warehouse
CWC/SWC Warehouses
Private warehouses/Cold storages/Godowns with a minimum
storage capacity of 100 MT
Value of Loan Value of the loan = Value of commodity minus commodityspecific margin amount
Rate of InterestBPLR- 4.75%; at present 15.25 % p.a. payable with the
principal repayment.
Margin
Min 40%.
The branch should monitor the prices of the commodities on a
weekly basis by referring to the prices of the commodities as
mentioned in the local dailies. It should be ensured that the
margin at no point of time falls below 30% i.e. when the total
outstanding as a percentage of the market value of the security
exceeds 70%. In the eventuality of this happening, a margin call
will be issued. The branch will inform the borrower to bring in
the shortfall in the margin. In case, additional margin is not
brought in by borrower within 15 days, the Bank will have theright to dispose off the goods.
Valuation The value of the commodity as security shall be the lower of thefollowing:Value of goods as reflected in the warehouse receipt.
Value of the goods based on the average price prevailing in the
nearest mandi on the day previous to the date of disbursement.
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Price provided by the Commodity Business Group, Central
Office from time to time for various commodities
Tenure of the loan
The maximum tenure of each loan shall be 12 months. Branches
should take timely steps to keep the warehouse receipts valid
and insurance of the stocks financed for that period in placeduring the currency of the facility
Risk rating of the
individual
Rating of Individual According Rating Table which is given
below.
Insurance
The stocks pledged to the Bank should be insured adequately
with Bank clause. The insurance premium will have to be borne
by the borrower. The Branch should ensure that the warehouses
are insured against fire, etc.
SecurityUpto Rs. 200,000/-
Primary-: Pledge of warehouse receipts duly endorsed in Banksfavour
Over Rs. 200,000
Primary-: Pledge of warehouse receipts duly endorsed in Banks
favourCollateral-: Third party Guarantee
Guarantee for limits
upto Rs. 200,000/-
--NIL
Guarantorsrequirements for loans
above Rs. 200,000/-
A personal guarantee from a person who fulfils at least one ofthe following eligibility criteria:
Should own at least 3 acres of cultivable land
Employed in Government, Semi Government organization andworking in the cadre of class III and above or equivalent
designation in a reputed private sector undertaking.Running own business with assets equal to the amount of the
loan proposed.
Other Conditions Post dated cheques to be collected from borrowers
Pre-disbursementconditions
Stock of commodity brought to the designated warehouses forpledge has to be certified for quality and quantity by the M&C
agent. In case of CWC/SWC receipt, the same is already
available from the warehouse managerThe complete set of borrower wise loan documents should be
obtained by the branchThe warehouse manager should ensure to create pledge ofstocks in favour of Bank
The financing amount will be 60% of the market value of the
stocks approved for financing
The stocks placed in the warehouse should be insured
adequately with Bank clause
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Disbursement
The individual borrower availing this facility will have to open
an account at the concerned local branch (the account can be
opened under SBSPL category wherein the average balance
requirement is Rs. 1000/-). The amount will disbursed by
crediting the account of the borrower, at the concerned branch.
Security from
warehouse
owner/manager
Have to sign M&C agreement with Bank to buy or arrange forthe sale of the stock in case of default of farmer
Letter of guarantee/comfort letter (in absence of the letter of
guarantee)(Branch should try and obtain a letter of guarantee)
Selection of the
warehouse/cold
storage
The warehouse/cold storage has to have adequate facilities (likeaeration, pest control, loading and unloading facilities,
electricity, security, etc.) to allow for the storage of the produce
with minimum loss in quality and quantity.The branches should check the credentials of the warehouse
owner before financing against the receipts issued by that
warehouse.It is suggested that the branch heads should identify only those
warehouses in their area, based on the credit report, integrity
and track record of warehouse owner.
It is suggested that branches may give preference to the
warehouses accredited by National Commodity and Derivative
Exchange, India (NCDEX) who provide warehouse receipts to
the farmers in dematerialized form.
Monitoring
M&C agent has to monitor the security. The quality and
quantity report has to be sent to the branch on a monthly basis.
The branch officer may appoint an inspection agency to inspect
the warehouse/cold storage, monthly. The branch officer may
inspect the warehouse/cold storage, quarterly, for verification of
the security. The M&C agent should monitor the quantity and
quality of the additional stock brought in lieu of a margin call.
Repayment Bullet repayment along with interest on due date.
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Penal Interest 2% p.a. on overdue loan/unpaid interest
Pre-payment charges 2% (if loan is repaid within one month. Otherwise nil)
Processing fee .40% of the loan sanctioned
M&C agent
Roles and
responsibilities
The M&C agent acts as a monitoring agency on behalf of the
Bank. The M&C agent acts as an interface between the Bankand the farmers.
Sourcing of the business to the branch.
Supervision of the unloading and weighing of the produce.Overseeing the tagging, stacking and segregation of the produce
in the identified space. The security of the stocks should also be
verified.
Right identification of the warehouse chamber where thepledged stocks have to be stocked and proper stacking of the
produce.
Consolidation of the produce and right tagging borrower wisewith a sign clearly indicating the Banks lien on the goods.
Maintenance of a stock statement based on the borrower codes
and net weights of the commodities.To attest the quantity and quality of the produce, valuation of
the produce and record the same in the warehouse receipt.
To inform Bank in case of margin call stock being brought in.Allow the release of the goods only on receipt of a written
intimation from the branch that the goods can be releasedArranging for buyers/buy back of the stock in case of default by
the farmer
M&C Agent chargesNormally 1% of the loan amount. However, branches can pay
maximum 1.5% of the loan amount wherever required.
Event of default In the event of default of a borrower, M&C agent shouldarrange for buyers/buy back of the stock. The Bank shall be
entitled to sell the pledged goods either through the M&C agent/public auction/private sale/through any commodity exchange
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and adjust the sale proceeds against the amount outstanding
from the borrower. The price at which the pledged commodityis sold by the Bank is final and binding on the borrower.
However, in case the proceeds from such a sale are not
sufficient to satisfy the amount outstanding in full, the Bank will
be entitled to recover the shortfall from borrower.
Documents to be
executed by the
borrower
DP Note
DP delivery letter
Letter of waiverPledge Agreement: To be finalized in consultation with the Law
Department
Warehouse receipt (to be duly endorsed in favour of the Bank)
Documents to be
executed by the M&Cagent
Management and Collection Agreement: To be finalized in
consultation with the Law Department
Registers to be
maintained
Registers to be maintained by the branch:Loan application cum disposal register
Price, Stock and Margin recovery register
Insurance due date register
Branches would keep the above mentioned registers in physicalform or in a excel sheet in the system. The records should be
updated at the stipulated time and hard copies be preserved in a
separate file.Registers to be filled in by M&C agent:
Stock and margin register
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Documentation:
Following documents should be obtained from borrower.
1Application form
2D.P.Note3D.P.Note delivery cum waiver letter
4Letter of Pledge
5Proof of agricultural activity (copy of land records, land revenue tax receipts etc.)6Declaration of ownership of the ornaments pledged
2Authorisation from the borrower for disclosure of information
The following document should be obtained from the appraiser
Certificate of valuation
Penal interest:
2% p.a. on overdue amount.
Processing & Appraiser fees:
0.25%+ST subject to maximum of Rs. 500+ST
BH has discretion to waive/ reduce if RoI is increased by 0.30%
No fee up to Rs.25,000/- loan
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0.25% subject to maximum of Rs.500/-
Insurance:
Gold ornaments pledged to the Bank will be covered under the Master policy of theft and burglary.Banks indemnity policy will be obtained by the Bank centrally.
Disbursement:
Up to Rs.50,000/- in Cash.
Above Rs.50,000/- by PO.
Sanctioning Authority:
The sanctioning authority would be the Branch Head in the category of Manager/AVP/VP. The
branches should send the Control Returns on monthly basis to the Zonal Office for noting and
review. The VP (Credit & Forex) will be the reviewing authority at the Zonal Office.
Repayment:
Repayment period not exceed 18 months. The facility will be renewable at the request of theborrower after 18 months. The repayment schedule should be aligned with the crop harvest cycle.
Release of the gold ornaments on repayment by borrowerThe branch should release the security only if the full amount of interest, other charges and
principal has been repaid.
The borrower should present the signed receipt issued to him/her by the Bank while takingdelivery of the ornaments. The borrower(s) needs to sign the receipt acknowledging that the gold
ornaments have been received by him/her in good order and condition.
The signed receipts should be arranged as per the date of closure of loan account and shown to theinspecting authority at the time of the inspection.
Guidelines for the release of the pledged jewellery on liquidation of the loan on death of the
borrower will be issued later in consultation with the Law Department.
Right of Disposal of Security:
In case of default, Bank has the right to dispose the gold ornaments for satisfaction of the loan by
way of public auction or private treaty and proceed against the borrower.
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Direct Financing to Farmers for Cattle Loans through Dairies/ Cooperatives:
Other Terms and Conditions:
In case guarantee is not available from Village Dairy cooperative, a guarantee from a person withinthe group or a guarantee from a third person acceptable to the Bank should be obtained. The
personal guarantee has to be obtained from a guarantor fulfilling at least one of the following
eligibility criteria:
should own his/her own tractor/own at least 2 acres of irrigated land/4 acres of dry land employedin government, semi government employment in the category of Scale III and above or working
with any reputed private sector undertakings at a respectable positions Running own business and
having assets with a market value equal to the amount of the loan.The Branch will reserve the
right to reject any loan application based on its own appraisal. The Branch sanctions will bereviewed by the Vice President (Credit & Forex) at the zonal office in the form of monthly control
returns.In case the Borrower stops supplying milk to the Union the entire loan amount shall be repayable
in lump sum/ recalled. Bank reserves the right to conduct inspections of the cattle/ shed
constructed on a periodic basis without any prior notice. The Milk Union will arrange to provide
monthly MIS regarding the continuity and regularity of milk supply by the borrower.
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5.Recommendations & Suggestions
Facts & Findings
1Working Capital of the Bank is decreasing year by year which is not a good sign for the bank.
2In the year 2007-08 Operating Margin was 23.25, in the year 2006-07 it was 21.84. Thisshows that Operating profit margin is increasing which is good for the bank.
3In the year 2007-08 Gross Profit Margin was 21.44, in the year 2006-07 it was 19.79. This
shows that Gross profit margin is increasing which is good for the bank.
4Net profit margin is increasing year by year.5Debt / Equity is decreasing.
6Fixed Assets Turnover ratio is increasing which shows that fixed assets are efficientlyutilized.
7Current Ratio is increasing which is showing a sound financial position of the company.
8Quick Ratio of the bank is increasing it shows that position of the bank is improving.9Sales of the Bank is increasing year by year in the year 2007-08 it was 70005.31 in the same
year Total Income and Net profit Before tax also increases respectively.
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10Both Saving Bank deposits and current bank deposits is increasing year by year which is a
good sign for the bank.
11This is a positive trend in Retail assets and Non Retail advances.12Earning per share is increasing which shows that an investor can invest in AXIS Bank to get
good profits.
Trading Profit
69
314263
0
200
400
Profit
Profit 69 314 263
200-01 2001-02 2002-03
INCREASING REACH
Month March March March
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01 02 03
CentersCovered
48 63 80
Branche
s+Extn.Counters
101 139 192
ATMs 303 491 822
Increasing Reach
0 0 0 048 101303
63 139491
80 192
822
0
1000Month
1-Mar
2-Mar
3-MarMonth0 0 0 0
1-Mar 48 101 303
1 2 3 4 5
RISING PROFITABILITY
Year 200-01 2001-02 2002-03
Net Profit 86 134 192
OperatingRevanues
261 615 733
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Rising Profitability
86 134192261
615733
0
200400
600
800
200-01 2001-02 2002-03
Net Profit
Operating
Revanues
FEE INCOMES
Year 200-01 2001-02 2002-03
Fee
Incomes(Cr.)
86 98 144
Fee Incomes
86 98
144
0
50
100
150
200
200-01 2001-02 2002-03
Fee Incomes(Cr.)
ATM CHANNEL MIGRATION
Month March01
March02
March
03
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Cardbase(Lakhs)
2.9 5.6 12.2
Card
withdrawls(Crore)
70 177 419
No.ofTransactions(Lakhs)
8 15.9 35.3
ATM CHANNEL MIGRATION
2.9 5.6 12.2
70
177
419
8 15.935.3
0
50
100
150
200
250
300
350
400450
3/1/04 3/2/04 3/3/04
Cardbase
(Lakhs)
Card withdrawls
(Crore)
No.ofTransactions
(Lakhs)
INTELLECTUAL CAPITAL
Years Profit
Below 30 years 28%
30-40 Years 11%
40-50 Years 2%
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Above 50 Years 59%
Intellectual Capital
28%
11%2%
59%
Below 30 years
30-40 Years
40-50 Years
Above 50 Years
6.RESEACH METHODOLOGY
Search as a scientific and systematic search for pertinent information on a specific topic. In fact
research is an art of scientific investigation.
Some people consider research as a movement, a movement from known to unknown; it is actually
a voyage of discovery.
This inquisitiveness is the mother of all knowledge and the method, which man employs for
obtaining the knowledge of whatever the unknown can be termed as research.
Definition of Research
according to Clifford woody" research comprises defining and redefining problems, formulating
hypothesis or suggested solution, collecting organizing and evaluating data , making deduction and
reaching conclusion and at last carefully testing the conclusion to determine weather they fit the
formulating hypothesis".
according to D. Slesinger and M. Stephenson" the manipulation of things , concepts or symbols for
the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art".
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Research is thus an original contribution to the existing stock of knowledge making for its
advancement.
Research objective
1.To recruit the Quality persons as insurance advisor.
2.To develop awareness about the ICICI Prudential products.
3.To develop a competency of the ICICI Prudential
4.Universe: Finite population of customers walk in at the branch premises.
5.Sampling Size: 150 customers
6.Sampling technique used: Random sampling because the universe is large and each element
have equal oppurtunity of being choosen and is done randomly.
7.Research Design: The research design was in the manner to cater the question regarding the
customer awareness about the various policies given by the advisors.
Data collection
Research was done with the help of collection. There were two method of collecting the
information:-
1.Primary
2.Secondary
Primary Secondary
1 Questionnaire 2 Magazine
3 Personal
Interaction
4 Internet
5 Telephone Calls 6 Organization
Manual
7 Survey
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Sample SizeAs the target market is already defined, the database that was already with the company
was used for data collection exercise. Sample size was 213.
Data was collected by primary sources through questionnaire by taking personal and
telephonic interviews. 80% schedule filled through personal interviews and rest 20% through
telephonic interviews.
Sample Area
C-Scheme, Jaipur
LIMITATIONS OF THE STUDY
1As the movement throughout the city is not possible due to certain constraints so the
movement was quite restricted.
2People are not ready to go for training. As the training period is of 17 days and it involves
full day, so it becomes difficult for them to leave their offices or shops for such a long
time.
3The compulsion of selling 12 policies in a year also restricts them from becoming
advisors. If they do not fulfill this target, then their license is cancelled after a year.
4Lack of trust on any company of Private Sector.
5Lack of knowledge about the products of ICICI Prudential and their total and blind faith
on LIC.
6Sometimes, fresh graduates want to become advisors but the company denies making
them an advisor as they are very fickle-minded and also unreliable.
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7There is a problem in targeting Chartered Accountants. ICAI, which is the governing
body of Chartered Accountants, does not allow them to become advisors. However,
now they have permitted some CAs to become advisors, but these are only those ones
who are doing jobs somewhere and not allowed the ones who are doing their practice.
So, still this decision is very dicey.
8Sometimes, even those people want to become advisors for the company who are not a
localite but then the major problem that they face is that they have got no natural
market, so they are very susceptible about their performance and whether they will be
able to generate business for the company or not, so they avoid to take up this
challenge.
9It was a great problem to get appointments from people in the month of March as most of
them were busy in filing their returns.
10Some people ask about comparative analysis with LIC.
Documentation according RBI KYC (Know Your Costumers) Guideline:
Mentioned below is the list of documents to be submitted with the completed duly signed AccountOpening Form:
Basic Common Documentation:
1Proof of Identity: PAN Card, Voter Id Card, Passport, Driving License
2Proof of Address: Latest Telephone Bill or Electricity Bill
Public or Private Limited Companies:
1Certificate of Incorporation and Commencement of Business
2Memorandum and Articles of Association3Board resolution authorising the opening and operation of the account
4PAN or GIR No. or completed Form 60
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5List of Directors with residential addresses
Partnership Firms:
1Partnership Deed and Registration Certificate2Shop and Establishment Certificate
3Letter from partners approving the persons concerned to open and operate the account
Proprietorship Concerns:
1Certificate from State Govt or Statutory Body or Trade License or Sales Tax2Certificate or Shop and Establishment Certificate
3Letter of proprietorship, duly signed by the proprietor in his or her
4individual capacity (with a rubber stamp) Hindu Undivided Family5Letter of HUF duly signed by Karta and all Co-parceners
6PAN or GIR No. or completed Form 60, 61.7Names of Karta and Co-parceners with residential addresses
8Latest passport-size photographs of all the authorized signatories
Trusts:
1Copy of the trust deed2Copy of the registration certificate
3Copy of the resolution by the trustees authorising the members concerned to open and operate the
account4List of Trustees with residential addresses
5Photographs of the members operating the account Associations or Clubs
6Bye-laws of the association or club7Certificate of Registration
8Copy of the resolution by the Board authorising the members concerned to open and operate the
account
9Photographs of the members operating the account
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Interest Rates:
Saving Account Deposit Interest Rate - 3.5%
Rates Effective from: Thursday, August 21, 2008
Period Interest Rates On Domestic Deposits
Deposits Interest Rate on
Deposits Below
Rs 15 lakhs (%)
Interest Rate on
Deposit 15 to 50
Lakhs (%)
Interest Rate on
Deposit 50
lakhs to 1 crore
(%)
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7 days to 14 days No Qute 1 1
15 days to 29 days 2.50 2.50 2.50
30 days to 45 days 3 3 3
46 days to 60 days 3.50 3.50 3.50
61days to less than 3
months4 4 4
3 months to less than 4
months4.50 4.50 4.50
4 months to less than 6
months4.50 4.50 4.50
6 months to less than 9
months
66 6
9 months to less than 1year 6.5 6.50 6.50
1 year to less than 2
Years7.30 7.30 7.30
2 years to less than 3
years7.60 7.60 7.60
3 Years to less than
5years
7.25 7.25 7.25
5 Years upto 10 years 7.257.25 7.25
Financial Performance:
1Profit after tax up 69% to Rs. 1,815.36 crores.
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2Net Interest Income up 43% to Rs. 3,686.21 crores.
3Other Income up 61% to Rs. 2,896.88crores.
4Fee Income up 64% to Rs. 2,447.35 crores5Deposits up 34% to Rs. 1, 17,374 crores.
6Demand Deposits up 37% to Rs. 50644 Crores.
7Advances up 61.79% to Rs. 81,557 crores.8Retail Assets up 18% to Rs 16,052 crores.
9Network of branches and extension counters increased from 827.
10Total number of ATMs 3595.11Net NPA ratio as a percentage of net customer assets down to 0.35% 0.36% from 0.36%.
12Earning per share (Basic) increased from Rs. 31.31 to Rs 50.27.
13Proposed Dividend up from 45% to 60%.
14Capital Adequacy Ratio stood at 13.69% as against the minimum regulatory norm of 9.26%%.
BUSINESS : HIGHLIGHTS
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1. Profit after tax up 43% to Rs 192.18 crore
2. Net interest income up 62% to Rs 322.40 crore.
3. Net interest margin increased from 1.68% to 2.09 %
4. Fee income up 47% to Rs 143.77 crore
5. Return on average assets up from 1.13% to 1.17 %
6. Deposits up 38% to Rs 16, 964.72 crores
7. Demand deposits up 93% to Rs 3,908.78 crores
8. Share of demand deposits up from 16.50 % to 23.04%
9. Advance up 34% to Rs 7,179.92 crore
10. Retail assets up 354% to Rs 1,099.94 crore
11. Network of branches and extension counters increase from 139 to 192
12. Total No. of ATMs went up from 491 to 822
13. No. of account up 48 % to 16,48,223
14. Net NPA ratio as percentage of customer assets down to 1.92% from 2.67%
15. Earning per share(diluted) increased from Rs 9.31 to Rs 9.97
16. Dividend up from 20%to 22%
17. Capital adequacy ratio increased from 10.65% to 10.90%
TRADING PROFITS
Year 200-01 2001-02 2002-03
Profit 69 314 263
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INTELLECTUAL PROFILE
Qualification Percentage
CAICWA/CS/CFAS 6%
MBAs 25%
ENGINEERS/TECHNICAL
10%
BANKING PROF. 34%
OTHERS 25%
Intellectual Profile
6%
25%
10%34%
25%
CAICWA/CS/CFAS
MBAs
ENGINEERS/TECHNI
CAL
BANKING PROF.
OTHERS
Shareholders
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Serial no. Name of shareholders % of paid up capital
1. Administrator of the specified undertaking of the
United trust of India (AXIS 1) 33.56%
2. Life insurance Corporation of India 13.54%
3. General insurance corporation and its subsidiaries 7.64%
4. Overseas investors/OCBs/NRIs 28.12%
5. Other Indian financial institAXISons/mutual funds/banks5.01%
6. Others 12.12%
Total 100%
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SHAREHOLDING
Companies Percentage
AXIS-I 33.56LIC 13.54
CDA 20.12
CitiCorp 3.83
Chrys Capital 3.83
Others 25.12
Shareholding
UTI-I
33%
LIC
14%CDA
20%
CitiCorp
4%
Chrys Capital
4%
Others
25% UTI-I
LIC
CDACitiCorp
Chrys Capital
Others
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Corporate Philosophy
AXIS bank as an organization has been built on the principles of professionalism, ethics and
financial expertise. It is AXIS banks firm belief that its existence and development are closely
interlinked with its ability to serve both retail and corporate clients well. Over the years, this belief
has evolved into its corporate philosophy of growth, innovation and stability.
Profitable growth is a key aspect of AXIS banks philosophy. AXIS bank has diversified into a
wide range of financial services and affiliated, aims to provide the benefits of universal banking to
its corporate and retail clients and its investors.
AXIS banks constantly endeavor to create products that best most the specific needs of its clients
and investors. In addition, AXIS bank also seeks to deliver these products effectively and
efficiently. It is therefore, sets for itself high standards of services and constantly strives to
improve upon them. The goal is to insure that dealing with AXIS bank is safe, simple and efficient.
AXIS bank values the trust that has been reposed in its financial expertise, both by its clients and
its investors. In all of AXIS banks investment offering, safety of investment is of paramount
importance. Therefore, AXIS bank attempts to pursue growth and innovations without
compromising on its stability.
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7.CONCLUSION
The name Axis Bank connotes solidity and transcends geographical boundaries as we seek to
become a multinational bank. The Bank was successful in establishing a new identity in the
market in a short span of time. The Bank once again met with considerable success over the past
year and achieved all its key objectives.The Bank has developed a branch network which is built on customer-convenience and
service, helping it particularly in the acquisition of low-cost retail deposits, retail assets, lending toagriculture, SME and mid-corporate and facilitating the cross-selling of third-party products.
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STRENGTHS
The strengths are:
1AXIS Bank is the third largest player in the insurance industry in
India
2It is the largest home loan financing institution in India
3AXIS Bank is a 70 years old company (founded in UK)
4AXIS Bank enjoys the highest AAA credit rating, which ensures
highest safety of money
5Mutual Fund
6Personal Loan
WEAKNESSES
The weaknesses are:
Some customers are not satisfied with the service of AXIS
Bank
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Only 48 branches all over India
High insurance-period duration
High premium
Low awareness of AXIS Bank in rural areas
OPPORTUNITY
The opportunities are:
1Huge opportunity in insurance market
2Better products as compared to other industries
3Due to increase in literacy rates, literate people prefer AXIS Bank
4AXIS Bank gives opportunity to other businesses to grow in the
market
THREATS
The threats are:
1Tough competition from LIC, ICICI, BAJAJ ALLIANCE, and
BIRLA SUN LIFE
2Due to low premium, rural markets prefer LIC
3Threat for AXIS Bank because over 12 new companies are entering
the market
4Currently, AXIS Bank is the 3rd player in the market, and the major
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threat is to sustain that position in the face of competition
5
SURVEY FOR AWARENESS OF LIFE INSURANCE
RESEARCH METHODOLOGY
The technique of finding facts from raw data is known as sampling.
SAMPLING:
Sampling is simply the process of learning about the population on the
basis of the sample drawn for it. Under this method, small group of the
universe is taken as the representative of the whole mass and the results
are drawn. It is a method to make social investigation practicable and
easy.
SAMPLE:
A static sample is a miniature picture or cross section of an entire group
or an aggregate from which the sample is taken. A sample is the
reflection of the universe.
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I have taken a total of 300 samples from the Jaipur population.
CLUSTER SAMPLING
Under this method, the total population is divided into some recognizable
sub-division which are termed as clusters and a simple random selection
of these clusters is made and then the survey of each and every unit in the
selected cluster is done.
PRINCIPLE OF CLUSTER SAMPLING
The principles that are basic to cluster sampling are:
1Clusters should be drawn from a sample which is in tune with the cost and
other limitations of the survey
2The number of sampling unit in each cluster should be approximately same
Details about cluster sampling from the project:
Age No. of Samples
25-35 100
35-45 100
45-55 100
55 & above 100
AREA OF SURVEY
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Gopal pura Mod, Vasundra colony, Tonk patak, Adaresh colony, Ajmery
Get, Johari Bazar, Bapu-bazar, Chada rasta,Etc.
CONTENTS OF SURVEY
Awareness in Different Age Group
Group No. of Samples
25-35 100
35-45 100
45-55 100
55 & above 100
Purpose of Insurance
Group No. of Samples
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Businessmen 100
Government employees 50
Private employees 50
Degree of Awareness in Different Gender of Society
Male 100
Female 50
8.Questionnaire
QUESTIONNAIRE ANALYSIS AND INTERPRETATION
Q1. What is your age group?
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According to the survey, maximum numbers of people belong to the age group of 18-25 years. So
we can say that most of the respondents may be the priority customers.
Q2. What is your Occupation?
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distribution of responders according to their occupation
(a) Business, 8
(b) Salaried, 25
(c) Self Employed,
7
(d) others, 10
0
5
10
15
20
25
30
various occupations
no.ofrespnodersi
n
a
particular
occupati
on
category
The above graph shows the occupation of the sample respondents.50% of the respondents belong
to the category of salaried employees.16% of the respondents are into Business.
14% of the responds are self employed and the rest 20% into other occupation.
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Q3. Under which range your Household Income falls?
household income rang
(a) < 2 lakhs
4%
(b) 2-5 lakhs
30%
(c) 5-10 lakhs
38%
(d) > 10lakhs
28%
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The graph above depicts the household income range of the respondents. The income range of the
maximum respondents lie in the 5-10 lakhs category whereas only 4% i.e. only 2 respondents
income falls in the category of < 2 lakhs.
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Age Group 18-25 years
i) Occupation
distr ibut io n of occupat ion fo r the age category
2
1 4
4
7
0
2
4
6
81 0
1 2
1 4
1 6
(a ) B us ine ss (b ) S ala ried (c ) S elf E m p lo y ed (d) ot h e rs
occupat ions av ia l
no.
ofresponserso
fage
paritcular
18-25
yrs
ofage
for
particular
occupa
tion
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In this age group, maximum no. of the respondents are salaried employees.
Out of the total sample population, 7 respondents out of 27 are neither into job, nor business. They
have either invested into the share or commodity markets or they are students.
Out of 27, 4 respondents are self employed i.e. they have joined their family business.
Remaining 2 respondents out of 27 in this age group are into business.
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proportions of responders income level for the age group 18-25 yrs
(a) < 2 lakhs
7%
(b) 2-5 lakhs
41%(c) 5-10 lakhs
37%
(d) > 10lakhs
15%
The above graph shows the income level of the respondents in the age group of 18-25 years.
In this age group, maximum no. of respondents has an income in the range of 2-5 lakhs.
10 of out of 27 respondents in this age group has an income range between 5-10 lakhs.
Around 20% of this age group has an income above 10 lakhs and the remaining 10% are below 2
lakhs
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Distribution of Income for the Age group 25-35 yrs
0%
27%
37%
36%
10 Lacs
Out of the sample population, 11 respondents are in the age group of 25-35 years.
37% of the total respondents in this age group have an annual income of 5-10 lakhs.
36% of the respondents i.e. 4 respondents annual income is above 10 lakhs.
The remaining 27% of the respondents i.e. 3 of them have an annual income between 2-5 lakhs.
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10. Bibliography/References
BooksDr. I.M. Pandey- Financial Management, Vikas Publication DelhiM.Y. Khan P.K. Jain- Financial Management, Tata Mc Graw Hill
Publishing company Limited, New Delhi
Websites www.axisbank.com
www.infinancials.com
www.google.com
www. axisbank.com/xmlapplication/aboutus/financials/images/
Annual -Report -2007.pdf