CONTENTS 1.1Overview 1.2Objective 1.3Products/Services Operative account Non operative account Miscellaneous services 1.4Instruments of operative account

CONTENTS1.1 Overview1.2 Objective1.3 Products/Services

Operative accountNon operative accountMiscellaneous services

1.4 Instruments of operative account1.5 Types of operative account1.6 Savings account –definition /facilities1.7 Types of flexi deposit1.8 Current account –definition/facilities1.9 Advances- definition /types1.10 Cycle of operative account1.11 Types of non operative account1.12 Types of deposits1.13 Cycle of non operative account1.14 Types of loans1.15 Cycle of loans1.16 Types of miscellaneous services

Overview

Retail Banking denotes catering to the requirements of retail customers viz..individuals,professionals,self employed etc.

Retail banking has seen a transformation over the past two decades with respect to business focus, delivery channel emphasis and the overall approach to the banking business. Today, given the greater stress being placed on mass customisation, banks are increasingly relying on technology to provide customised solutions to consumers.

Objective Of Retail Banking

• The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, PhoneBanking, NetBanking and MobileBanking.

Products/Services Offered

• Operative accounts

• Non operative account

• Miscellaneous services

Operating account

The Main services offered in this sector are :

• Savings account1. Flexi deposits

– Auto sweep– Reverse sweep

• Current account• Advances

Instruments of operative accounts

• Cheques

• Demand drafts

• Managers cheques

• Cash

Savings accountA minimum quaterly balance needs to be maintained in this type of account.The minimum balance criteria differs from bank to bank.

Non Maintenance of minimum balance in the account attracts a quarterly fee which again is determined by the bank and varies for each bank

Facilities offered for Savingsaccount

Debit-cum-ATM card

Auto Invest Account

Internet Banking

Phone Banking

Anywhere Banking

Standing instructions

Doorstep service

Flexi Deposit

There are two types:

1) In a savings account,the amount held over and above the prescribed minimum balance would be automatically put in a term deposit earning higher return for customer.This is termed ‘AUTO SWEEP’

Auto Sweep

Eg : If ‘A’ hold an savings account with bank ‘ABC’ where the minimum balance is Rs 5000.If ‘A’ has a balance of Rs 6000 in his account the remaining 1000 ( 6000-5000)

will be automatically put in a term deposit.

Reverse Sweep

Whenever the customer issues a cheque which brings down his savings account balance below the prescribed limit,the shortfall amount will be automatically taken from the term deposit.This is called ‘reverse sweep’.

Reverse sweep

Eg : Considering the pervious example of ‘A’ where Rs 1000 from his account is held as term deposit.If ‘A’ has issued a cheque for Rs

1000,when this cheque debits his account his balance reduces to rs4000 which is below the minimum limit of Rs5000.In such a case

Rs 1000 which was held in term deposit gets adjusted to savings account to bring back the saving account minimum balance to Rs 5000

Flexi Deposit

2)The fixed deposit of a customer is held in units of 1000 or so as prescribed by the bank.In case of need the customer can withdraw part amount of deposit without closing the deposit.

In case of fore-closure,the deposit would earn interest at rates applicable for the period run without any penalty.

Flexi Deposit

Eg :If ‘A’ holds a deposit of Rs 10000 with bank ‘ABC’ broken into units of 1000 for a period of 6 months.Incase he withdraws Rs 700 after 3 months.

Cal: He will earn interest for Rs 10000 for 3 months.When he withdraws Rs 700 from his account the deposit is broken and Rs 1000 is moved to savings account.The remaining 9000 will earn interest for the remaining time period.

Current Account

• What is Current account?

• A running account supporting unlimited withdrawals and deposits

• A current account is meant for convenience and not to save money

Facilities offered for currentaccount

• Unlimited Withdrawal and Deposit • Unlimited Cheque book • Demand Drafts and Payorders • Funds Transfer ( Local or Anywhere) • Collection of Cheques/ Drafts • Statements,Advices, Daily statement by e-mail • Cash withdrawal and Deposits • Multicity Cheque payment facility • Anywhere Banking facility • Doorstep Banking - Pick up and delivery of Currency / Cheque • Mobile Banking

STANDING INSTRUCTIONS

• STANDING INSTRUCTIONS

Standing instructions can be given to the Bank for transfer/remittance of funds from one account to other account/s maintained in the same branch, any other branch of the Bank or any other bank or any other third party

Advances

• An advance is a credit facility provided by the bank to its customers. It differs from loan in the sense that loans may be granted for longer period, but advances are normally granted for a short period of time. Further the purpose of granting advances is to meet the day-to-day requirements of business. The rate of interest charged on advances varies from bank to bank.Interest is charged only on the amount withdrawn and not on the sanctioned amount.

Advances

• Bank has a very wide bouquet of types of credit facilities which can be tailor-made to suit customer specific requirements. In a nutshell, the Bank offers :

Types of Advances

• Cash Credit

• Over draft

• Discounting of bills

Cash Credit

• Cash credit is an arrangement whereby the bank allows the borrower to draw amount upto a specified limit. The amount is credited to the account of the customer. The customer can withdraw this amount as and when he requires. Interest is charged on the amount actually withdrawn. Cash Credit is granted as per terms and conditions agreed with the customers.

Overdraft

• Overdraft is also a credit facility granted by bank. A customer who has a current account with the bank is allowed to withdraw more than the amount of credit balance in his account.It is a temporary arrangement. Overdraft facility with a specified limit may be allowed either on the security of assets, or on personal security, or both

Discounting of Bills

• Banks provide short-term finance by discounting bills, that is, making payment of the amount before the due date of the bills after deducting a certain rate of discount. The party gets the funds without waiting for the date of maturity of the bills. In case any bill is dishonoured on the due date, the bank can recover the amount from the customer.

Advances

• What is the minimum & maximum period for which customer can avail advance from the Bank?

• The Minimum period for which an advance may be sanctioned starts is one day. The maximum period for which an advance can be sanctioned depends upon:-

• The Debt Service Capacity of the borrower reckoned from the cash flow from the business operations; and,

• The purpose of the advance

Cycle of Operative account

• Origination

• Service

• Closure

Application Scrutiny &

verification

Account opening &

maintenanceCommunication

Applicant should

submit

Account opening

form

Address proof

Identity proof

Self cheque or

cash for minimum

balance

Verify and

check validity

of documents

provided

Account opened

Cheque book printing

Mapping of signature

Welcomepack

With debit card,

cheque book,

details of

Account sent

to customer

Operative Account Origination

Transactions Fee & Charges Interest Reporting

Customer Relations

Deposit Withdrawal Frequent Withdrawals Balances overdraws

Periodic account statements

Transaction profile statement

Transfers Issue of Cheque books/ Account statements

Regulatory Reporting

Standing Instructions Duplicate Records

Bill payments Returned Cheques

Issue of cheque books Cancellation of Drafts

Account statements Account closure

Addition/ Changes to account holders

Addition/ Changes to groups

SERVICING OPERATIVE ACCOUNT

Request Processing Administration Closure

Customer request for closure

Striking balance Collection of unused cheques

Closing of accounts

Banks decision to close

Status on- Standing instructions- Uncleared cheques inward- Uncleared cheques outward

Cancellation of authorization- ATM- Phone- Online

Repayment of balance

Transfer to Non-operative account

Special conditions- Lien- Approvals

Fee/ Charges Removal of accounts

CLOSURE OF OPERATIVE ACCOUNT

Non operating account

• Deposits

• Loans

Deposit Services

They can be broadly classified as

• Fixed deposit

• Recurring deposit

Deposit Services

The products or features offered by banks under these categories varies from bank to bank

Mentioned below are a few of such products offered by banks

Fixed Deposits

Fixed Deposits impose a Simple Interest Formula on the Principle amount deposited by the customer.

Interest can be paid Quarterly, Semi-Annually or Annually as req. by customer.

Recurring/Monthly Deposits

• Every month the Customer Pays the Installment which is fixed in the beginning.

• For Preclosure a Penalty of 1% -2 %is Charged.

Cycle of Non operating Account

• Origination

• Servicing

• Closure

Application Scrutiny &

verification

Opening Of

DepositCommunication

Provide the following

Request form

Proof of indentity

Cheque or cash for

Amount to be

Deposited

PAN details or

Form 60 for

Beyond deposit of

Rs 50000

Validity of

documentsDeposit opened,details

Of maturity maintained

On system

If existing customer

And holds account,

Mapped to customer

Savings account

Certifcate of

Deposit

Despatched

Stating maturity

Date ,rate of

Interest and

Amount to be

Earned end of

tenure

Non Operative Account Origination

Transctions Fee & Charges Interest Reporting

Collect monthly deposit

For recurring deposit

Movement for funds

To savings account

For reverse sweep

Withdraw of funds

From

Issue of duplicate

Deposit receipt

Loss of interest

Loss of interest

Nominal charge

Quarterly interest

Accrued to account

For recurring deposit

For fixed deposit

quarterly,semi

Annually or annually

Monthly

Statements with

Interest

Calculations

Non Operative Account Servicing

RequestProcessing Payment Closure

On Maturity

Preclosure

Renew

If no confirmation

Received from

Customer

The deposit gets

Renewed for another

Same tenure

Recover penalty

Fee for recurring

Deposit

Change maturity date

On system

The principal plus

Interest earned during

The tenure

Principal plus interest

For the period when

The funds where held

Pay interest or reinvest

As desired by customer

Certificate of

Deposit recovered

And deposit closed

By issuing demand

draft

Certificate of

Deposit recovered

And deposit closed

Issuing demand

draft

Non Operative Account Closure

LOANS AND ADVANCES• HOME LOAN

• AUTO LOAN

• 1. TWO-WHEELER LOAN

• 2. CAR LOAN

• EDUCATION LOAN

• PERSONAL LOAN

• CONSUMER LOAN

• LOAN AGAINST SECURITIES

• - DEPOSITS, SHARES

Housing loan

Housing loans are referred to the loansprovided by the banks for the following purposes

• For construction/purchase of flat/house• Repairs/Renovation of existing

house/flat• Purchase of flat/house resold• Purchase of land

Home Loan

The criteria for providing housing loans differs from bank to bank.

The eligibility is mainly for Individuals Salaried class,businessmen, professionals with minimum period of service

Age – Upto 50-55 years

Housing loan sanction

The loan amount will be calculated based on the value of property the customer is going to buy and also based on the earnings of the customer.

The loan amount would be 36 times gross salary or 60 times net salary of the customer which ever is higher.Spouse income also considered

Margin: 15% on total project cost ( cost of land + cost of construction)

30% - For repairs

Housing loan Interest Rate

There are 2 options• Fixed rate• Floating rate

The rate also varies with the tenure selected by customer.There is maximum of 20 years tenure offered by banks

Housing loan Repayment

• Repayment period:

For purchase/ construction: 20 years EMI.

For repairs/ renovation : 10 years EMI.

• Processing Fee:

0.5% to 1% from bank to bank.

• Security:

Mortgage of house to be purchased.

Cycle of a housing loan

• Origination

• Verification

• Sanction

• Disbursal

• Closure

Application Documentation

If customer has identified property to Be purchased

Submit housing loan application

Eligibility Criteria

•You must be at least 21

years of age when the loan

is sanctioned.

•The loan must terminate

before or when you turn

65 years of age or before

retirement, whichever is

earlier.

•You must be employed

or self-employed with a

regular source of income

Margin

Customer contribution

•15% for new house/ flat •20% for old house/ flat •20% for repairs and renovation

ORIGNIATION OF HOUSING LOAN

Details on next slide

Documents for housing loan origination

• Passport size photograph • Proof of residence

(This applies only to new or non-bank customers, and could be either a PAN identity card, voter identification card or passport)

• Sale Deed/ Agreement of Sale • Bank account Statement or passbook, for the last six months

For employees or people in service, you also need to provide: • Salary certificate and other information, if any, about your repayment capacity • Form 16 or a copy of the Income Tax Returns for the last 2 years

For self employed and other IT assessees: • IT returns for the last 3 years· Receipts of advance tax paid • Any other information about your repayment capacity • In addition to the above mandatory documents, you are also required to furnish one or

more of the following documents wherever applicable:· • Letter of allotment from the housing board or society • Copy of the approved plan • Permission for construction • Copy of the relative order in the case of conversion of agricultural land. (not required where

the house/flat has been constructed by an approved builder)

Documents for Housing loan

• Additional documents required for an old house/flat :

• In the case of an old existing house, you will need to get a valuation certificate from approved valuers as well as a certificate from a government approved architect /structural engineer regarding the condition of the flat/house as well as its remaining life.

Housing loan OriginationCustomers who have not identified the property to be bought :

In-principle approvalBanks give in-principle approvals based on the customer income and capacity to repay, to enable them to identify a house/ flat with full confidence. All loans are at the sole discretion of the Bank.

Customer needs to identify the property within 3 months from the loan being sanctioned

Verification & Processing ofHousing loan

Stages in verification & processing

• Scrutiny of the application and documents

• Verification

• Processing charges

• Sanctioning of loan

• Disbursal of loan

Housing loan Verification & Processing

SCRUTINY VERIFICATION SANCTION DISBURSAL

Check credit

worthiness

of customer

Default

blacklisted

Any other loans held

Verify the property

To ascertain the

Market value

Verify the validity of

documents

Collect Post dated

Cheques,ECS,

Standing instruction

from Customer

for EMI

Collect 0.5-1%

Processing charge

80-90% of the value

Of the property

Ascertained by the

Bank is sanctioned

Demand draft is

Issued to the

Builder or seller of

The property after

The customer

Shows proof for

his margin

Contribution

Closure of Housing LoanRequest Closure

Loan tenure completed

Customer defaults payments and bank fore closes the Loan

Customer request for foreclosure

Customer request another bank to takeOver the existing housing loan

Loan account closed and documents pertaining toThe property returned to the customer.

Bank has the authority to sell the property and to Recover its dues from the sale proceeds.AmountLeft after bank dues are covered is returned back To customer and loan account is closed ,post datedCheques returned

Recover complete dues from customer and returnThe property documents.Bank charge a foreclosureCharge and closed loan account

Banks receive the outstanding balance from anotherBank taking over the loan and returns the propertyDocument to the bank taking over the loanForeclosure charges are paid by the bank taking over The loan.Loan is closed once all settlements are done

Auto Loan

Auto loan are provided by the banks to

Customer for the following purposes

To buy :

• A new car, jeep or Multi Utility Vehicles (MUVs) (any make or model)

• An old car / jeep / MUV (not more than 4 years old). (any make or model)

Eligibility for Auto loan

• A Permanent employee of State/Central Government, Public Sector Undertaking, Private company or a reputed establishment or

• A Professionals or self-employed individual who is an income tax assessee or

• A Person engaged in agriculture and allied activities.

Auto loan amount criteria

• There is no upper limit for the amount of a car loan. It is limited only by your repaying capacity. A maximum loan amount of 2 times the net annual income can be sanctioned. If married, your spouse's income could also be considered provided the spouse guarantees the loan

• The loan amount includes finance for one-time road tax, registration and insurance

Margin for Auto loan

• Margin

• New vehicles10-15% when loan is upto Rs.4 lacs

• 15-20% when loan exceeds Rs.4 lacs• Old vehicles 20-30%for vehicles upto 2 years

old

• 30-40% for vehicles 2-4 years old

Repayment options

• Repayment period for new vehicles : Maximum of 84 months

• Repayment period for old vehicles : Maximum 60 months for vehicles upto 2 years old ; Maximum 36 for vehicles which are 2-4 years old

• You may prepay at will with no prepayment penalty whatsoever.

Interest Rates on Auto Loans

2 options

• Fixed rate

• Floating rate

Fixed Rate of Interest

• In the case of a fixed rate loan, the interest rate on the loan will remain fixed through the entire tenure of the loan

Floating Rate of Interest

• In the case of a floating rate loan, the interest rate could decline or rise in line with the changes in the Bank's Medium Term Lending Rate

Loan Terms

Hypothecation: When a property is hypothecated to a bank it means the original documents pertaining to the property will be held with the bank until the loan amount is completely repaid by the customer. An authority given to a banker, usually a letter of hypothecation to enable the bank to sell goods that have been pledged to them as security for loan.

Life cycle of a Auto Loan

• Origination

• Process & Sanction

• Recovery & closure


Submit auto loan application

Eligibility CriteriaLoan to Value of the vehice

(LTV).

Age of the Borrower (There

is a minimum and

Maximum age limit).

Tenure of the Loan.

Employment Period

(balance years in service

for the person borrowing).

Collateral Requirements

(normally the vehicle for

which the loan is taken is

kept as a collateral with

the financier

Margin

Customer contributionNew vehicle10-15 % upto 4 lacs15-20% above 4 lacs

Old vehicle20-30% upto 2 yrs old30-40% for 2-4 yrs old

ORIGNIATION OF AUTO LOAN


Documentations

• The Documents required for a Salaried Individual - a. Proof of Income - latest 2 attested salary slips with TDS

certificate/Form 16. b. Proof of Residence - Ration Card/Driving License/Voter

I-card/Electricity Bill/Insurance Policy. c. Banking History - photocopies of the bank statement showing

last 3-months transactions. d. Photographs. e. Proof of Identity - Passport Copy/Voter's I-card/Driving

License/Employer's Card. f. Signature verification from the bank.

Documentation

• The Documents required for a Self-Employed Individual -

a. Balance sheet and P&L account for the last 2 years certified by an Auditor.

b. Acknowledged copy of IT Returns for the last 2 years. c. Proof of Residence - Ration Card/Driving License/Voter

I-card/Electricity Bill/Insurance Policy/Telephone Bill. d. Banking History - photocopies of the bank statement showing

last 3-months transactions. e. Photographs. f. Proof of Identity - Passport Copy/Voter's I-card/Driving

License/Employer's Card. g. Signature verification from the bank. h. Sole Proprietorship Declaration on the letterhead

Auto loan Verification & Processing


Check credit

worthiness

of customer

Default

blacklisted


Verify the address

And office of

customer


documents

Collect Post dated

Cheques,ECS,


from Customer

for EMI

Collect 0.5-1%

Processing charge

Sanction 80-90% of

The value of vehicle

Demand draft is

Issued to the

seller of

The vehicle after

The customer

Shows proof for

his margin

Contribution

Closure of Auto LoanRequest Closure


Customer defaults payments and bank fore closes the Loan

Customer request for foreclosure

Loan account closed and documents pertaining toThe vehicle returned to the customer.

Bank has the authority to sell the vehicle and to Recover its dues from the sale proceeds.AmountLeft after bank dues are covered is returned back To customer and loan account is closed ,post datedCheques returned

Recover complete dues from customer and returnThe vehicle documents.Bank charge a foreclosureCharge and closed loan account

Education loan• These loans are specifically offered for the pursuit of

academics in recognized schools, colleges and various other educational institutions, both in India and abroad. You may avail of this loan facility to meet:

Eligible Courses • Graduation courses/ Post graduation courses/

Professional courses • Other courses leading to diploma, degree etc.

conducted by colleges, universities approved by UGC/ Government/ AICTE etc.

Education Loan• Expenses considered for loan • Fees payable to college/school/hostel • Examination/Library/Laboratory fees • Purchase of Books/Equipment/Instruments/Uniforms • Caution Deposit/Building Fund/Refundable Deposit • Travel Expenses/Passage money for studies abroad • Purchase of computers considered necessary for

completion of course • Cost of a Two-wheeler upto Rs. 50,000/-

Education Loan Amount• Loan Amount

• For studies in India, maximum Rs. 10 lacs • Studies abroad, maximum Rs. 20 lacs

Margin • For loans up to Rs.4.0 lacs : No Margin • For loans above Rs.4.0 lacs: The Margins are as under: • In the case of Education in India, the margin is 5% • In the case of Education Abroad, the margin is 15% • No processing fee/ upfront charges

Education loan Interest

Loans up to Rs.4 lakh may be advanced at interest rate not exceeding PLR of the bank. Above Rs.4 lakh, the interest rate may be PLR+1%

Repayment method

• The repayment would begin one year after the course period or six months after you get a job, whichever is earlier. You are expected to pay a minimum amount equivalent to the EMI on a monthly basis. However, you can choose to pay more than the EMI, and we do not charge any prepayment penalty.


Existing Customer

Submit form

New Customer

Submit formProvide guarantor details


Should be an Indian National

Secured admission to

professional/ technical courses

through Entrance Test/

Selection process Secured admission to foreign

university/ Institution

Margin

Customer contributionUpto 4 lacs – No margin

Above 4 lacs- 5% india

15% abroad

ORIGNIATION OF EDUCATION LOAN


Education loan documents

• You will need to furnish the following documents along with the completed application form. Relevant information would relate to the guardian and the student both, when the loan is jointly taken.

· Mark sheet of last qualifying examination for school and graduate studies in India· Proof of admission to the course· Schedule of expenses for the course· Copies of letter confirming scholarship, etc.· Copies of foreign exchange permit, if applicable.· 2 passport size photographs· Statement of Bank account for the last six months of borrower· Income tax assessment order not more than 2 years old · Brief statement of assets and liabilities of borrower

If you are not an existing bank customer you would also need to establish your identity and give proof of residence.

Education loan Verification & Processing


Check credit

worthiness

of customer /

guarantor

Default

blacklisted


Verify the address

And office of

Customer/guarantor


Documents

Collect Post dated

Cheques,ECS,


from Customer

for EMI

No

Processing charge

Sanction loan based

On margin

Demand draft is

Issued to the

Educational

institute

Closure of Education LoanRequest Closure


Customer Request for foreclosure

Ensure all dues are recovered and account closed

No prepayment charges.Recover all dues andClose customer account.Return post dated cheques

Personal loan

• To meet any kind of personal expenses, e.g., marriage, family functions, medical, educational, travel expenses, etc.

Personal loan Eligibility

• A State/Central Govt. Employee, employee of public sector undertaking/reputed profit making public limited company, reputed institutions, MNC with a minimum service experience of 2 years.

• A self employed engineer, doctor, architect, chartered accountant, MBA, with a minimum 2 years standing. You should be 60 years of age or less.

• A Pensioner of PSU/Govt. (Central/State)/Public Sector Bank who has taken premature voluntary retirement and is 60 years of age or less

• Agents of insurance/KVP/Mutual funds etc. with 3-5 years standing who are tax assesses and whose gross annual income exceeds Rs. 2 lacs.

• Traders, who have cash flows to repay the loans and can provide adequate tangible collateral security. They should restrict their banking requirements to the branch where the loan is proposed to be taken.

Personal Loan amount

• Loan Amount

Your personal loan limit would be determined by your income and repayment capacity.

Minimum : Rs.24,000/-Maximum : 12 times Net Monthly Income for salaried individuals and pensioners and 1 year's net annual income in case of self employed professionals with the under noted ceilings; Additionally, your spouse's income can be considered in calculating the loan amount provided he/she guarantees the loan or the loan is taken jointly.

• Salaried individuals and self employed professionals : Rs.2.50 lacs (Rs.5.0 lacs in select Metros and can be further increased to Rs.10.0 lacs under certain conditions)For pensioners : Rs.1.5 lacsFor Traders : Rs.1.0 lac

Documents Required

• Documents Required • Important documents to be furnished while opening a Personal

Loan Account:For existing bank customers:

• Passport size photograph.From salaried individuals

• Latest salary slip and Form 16From Self-employed individuals and Professionals

• IT returns for the last two financial years, • Proof of Professional Qualification : Copy of highest

professionals degree held • Proof of official address.This can include shop and

establishment certificate/Lease deed/Telephone Bill.

Repayment• The loan is repayable in 48 EMI. You are

allowed to pay more than the EMI if you wish to, without attracting any prepayment penalty.

Processing Fee : • Processing charges are 1 per cent of the loan

amount. This is amongst the lowest fees in the industry. Processing fees have to be paid upfront. There are no hidden costs or other administrative charges


Existing Customer

Submit form

New Customer

Submit formProvide guarantor detailsAddress proofSalary proof


Salaried Individuals

Self Employed Individuals

ORIGNIATION OF PERSONAL LOAN

For Salaried Individuals1. Application Form 2. Photograph 3. Proof of date of birth 4. Proof of Residence 5. Salary Slip for last few months 6. Proof of work experience 7. Bank Statement for last few months (where 8. the salary is credited or deposited) 9. Form 16 10. Signature Verification 11. Upfront Processing Fee Cheque (in case of some12. lenders) For Self-Employed Individuals1. Application Form 2. Photograph 3. Proof of date of birth 4. Proof of Residence 5. Profit and Loss account and Balance Sheet

attested by Chartered Account 6 Bank Statement for last few months 7 Income Tax Return 8 Signature Verification 9 Upfront Processing Fee Cheque10 (in case of some lenders)

Personal loan Verification & Processing


Check credit

worthiness

of customer

Default

blacklisted

Existing Customer

Verify the address

And office of

Customer


Documents

Collect Post dated

Cheques,ECS,


from Customer

for EMI

Processing charge

Demand draft is

Issued to customer

Closure of Personal LoanRequest Closure


Customer Request for foreclosure

Ensure all dues are recovered and account closed

Recover all dues and prepayment chargesClose customer account.Return post dated cheques

Consumer Loan

• PURPOSE: For purchasing consumer durables like TV, VCR, Washing Machine, AC, furniture etc.

• Loan Amount: Calculated at certain times of monthly salary.

Consumer Loan

• Margin: 15%.

• Security: Hypothecation of articles/equipments purchased.

• Repayment:

Equated monthly instalments. Max. period upto 60 months.

Loan against Deposit

• Purpose: For meeting educational/ consumption/other expenses.

• Loan amount: 85% on the interest accrued value of the deposit.

• Repayment: Upto the maturity date of the deposit in instalments. If not paid fully, the amount due will be adjusted from the maturity proceeds.

Loan against Securities

Leverage your investments in shares, debentures, public sector bonds and Government securities for loans to meet unforeseen expenses!

Avail of loans up to Rs.20.0 lacs against your shares/debentures to enable you to meet contingencies, personal needs or even for subscribing to rights or new issue of shares.

Loan Against Securities

• Margin

You will need to provide a margin amount of 50% of the prevailing market prices of the shares/ non-convertible debentures be in

• Documents Required • You will be required to submit a declaration indicating : • Details of loans availed from other banks/ branches for acquiring shares/

debentures. • Details of loans availed from other banks/ branches against security of shares/

debentures • g offered as security

Loan against securities

• Purpose • For meeting contingencies and needs of

personal nature. Loan will be permitted for subscribing to rights or new issue of shares / debentures against the security of existing shares / debentures. Loan will not be sanctioned for (i) speculative purposes (ii) inter-corporate investments or (iii) acquiring controlling interest in company / companies.

Loans against Securities

• Repayment Schedule : • To be liquidated in maximum period of

30 months through a suitable reducing DP programme.

• In case of a default or if the outstanding is over Rs.20.0 lacs, the shares/debentures will be transferred in the name of the Bank.

Loan Against Securities

• Essential Parameters for acceptance of shares as security i)The equity shares and debentures offered as security should be fully paid. Preference shares will not be acceptable as security(ii)The shares/ debentures offered as security must be in demat form.(iii)The share/ debenture should be of a company listed in BSE 100 Index, except those of SBI (list of BSE 100 Index companies is available on www.bseindia.com).(iv)The market price of the security should not have fallen below par for preceding 52 weeks.(v)The market price of the security should not be as variance with the arithmetical average of preceding 52 weeks high and low by more than 25% in downward direction.vi)( P/E ratio of the company should not exceed 40 as published in Economic Times. In case P/E ratio is not available the shares/ debentures of the company should not be accepted as security. (vii)The total number of shares of the company traded on NSE and BSE should exceed 25000 on the day of financing and on each preceding 2 days.(viii)Security where the market price 52 week high is 4 times of the 52 week low should not be accepted.

Loan against Securities

• Documentation

*Application for overdraft limit against security of shares/ debentures indicating details of shares (i.e. ISIN of the company whose shares/ debenture are offered as security, number of shares/ debenture offered as security) along with borrowers DP ID and DP account number.*Applicant has to submit consent letter agreeing to regularize the account/ replenish the margin shortfall, on account of adverse market price variation, immediately on receipt of notice from the branch. Applicant will also submit consent to the condition that in the event of his failure to regularize the account immediately, Bank has the right to get the security transferred in its name and arrange for its sale, without any further reference to him. The Bank shall exercise this option without prejudice to its rights to recover the dues by other means also.*DP Note and DP Delivery letter.*Irrevocable Letter of Undertaking addressed to the Bank signed by all holders of the shares.*Dividend collection mandate(s).*Either or Survivorship Letter(if applicable).

Miscellaneous Services

• Safe Deposit lockers

• Credit Cards

• Cheque collection

• Remittance facility

• Internet Banking

• Phone banking

• Demat Facilities

Safe deposit lockers

• The facility of Safe Deposit Lockers is an ancillary service offered by the Bank. The Bank's branches offering this facility will indicate/display this information.

The major aspects governing the services are :

• A locker may be hired by an individual ( not minor), firms, limited companies, specified associations and societies etc.

• Nomination facility is available to individual hirer of Safe Deposit Locker. • Loss of key should be immediately informed to the Branch. • Lockers are available in different sizes. • Lockers are rented out for a minimum period of one year. Rent is payable in advance. In

case of overdue rent, the Bank will charge penalty as decided from time to time. • With standing instruction, the rent may be paid from the deposit account of the hirer. • The Bank will hire locker only to properly introduced persons. • The Bank reserves right to break open the locker if the rent is not paid inspite of giving

notices as per the Bank rules and recover charges thereof. • The locker can be surrendered by the hirers as indicated in Memorandum of Letting.

Internet Banking

• Internet Banking" refers to the internet banking service offered by the Bank to the user including services such as enquiry about balance in the Account, details about transactions in the Account(s), statement of Account, transfer of funds and any other service as the Bank may decide to provide from time to time through internet.

• The customer will be given a user id and password at the time of opening his account.

This id & password enables the customer to access his bank account through the bank website on the internet.

Phone Banking

• The customer will also be given a specific telephone code at the time of account opening.

• With this code the customer can access his bank account by calling the help line phone number to know his bank balance, make bill payments,account to account transfer within the same bank,request for Demand draft,cheque books etc

DEMAT SERVICES

• Depository Participant Services

Depository is an organization, which holds your securities in the form of electronic book entries. This will be done at the request of shareholders through the medium of a Depository Participant (DP). If an investor wants the services of a Depository, he has to open an account with the DP. Further, a depository transfers securities as per the investor's instructions without actually handling securities, through the electronic mode. The DP will maintain the account balances of securities bought and sold by the investor from time to time. The DP will also give the investor a statement of holdings, which is similar to a passbook.

DEMAT ACCOUNT

• Depository Account Opening

An investor needs a satisfactory introduction and identification to open a Demat account with our DP.Every account holder in our Bank can open a Demat account. An investor has to fill up an Account Opening Form and execute an agreement with the DP for opening a Demat account.

DEMAT SERVICES

• Benefits of holding Shares in Electronic form

Transactions take place much faster in electronic trading compared to a 30-60 days settlement cycle that is presently experienced. Transfer of shares is effected within a few days after payment is made. * Elimination of bad deliveries and all risks associated with physical certificate such as loss, theft, mutilation, forgery, etc. * Easy liquidity.* No stamp duty on transfer.* No postage/courier charges.* Faster disbursement of corporate benefits like rights, bonus, etc. * Facility for creating charge on dematerialized shares for granting loans and advances against shares

DEMAT ACCOUNT

• Account opening

An investor (investors are called Beneficial owners in Depository system) intending to hold securities in the electronic form in the Depository system will have to open an account with a DP of NSDL. The investor has to fill up an account opening form and sign an Agreement. The investor can open multiple accounts with same DP as also with different DPs. The DP will provide the investor a statement of holdings and transactions. In case the shares are held in joint names then the account is to be opened in the same order of names.

Separate account needs to be opened for each combination of names

Dematerialisation/Rematerialisation

Dematerialisation is the process by which an investor gets his physical certificates converted into electronic form and reflected in his account with the DP.

* One has to just fill in Dematerialisation Request Form available with his DP. Submit his share certificates along with the above form (legend like 'Surrendered for Dematerialisation' should be written on the face of each certificate before its submission for Dematerialisation). The beneficial owner's account will be credited with in 15 days and he will be informed by the DP.* In one whishes to convert his electronic shares back to physical shares at a later stage, he can still do so by applying for rematerialisation through a Rematerialisation Request Form available with his DP. The new rematerialized certificates with new range of certificate number may use existing Folio number or a new folio number for the certificates.

Electronic Trading

Trading in the Depository mode takes place in the following manner:

* If the investor wants to sell his shares, he has to place an order with his broker and give a "Delivery Instruction" to his DP. The DP will debit his account with the number of shares sold by him.* If one wants to buy shares, he is to inform his broker about his Depository Account Number so that the shares bought by him are credited into his account. * Payment for the electronic shares bought or sold is to be made in the same way as in the case of physical securities.* The shares one buys are transferred in his name promptly after he makes the payment.* No formalities of filling transfer deeds, affixing stamps and applying to the Company for registering the shares in Beneficial owner's name are required to be observed, neither there is any fear of bad delivery.