Upload
vedansh
View
123
Download
5
Tags:
Embed Size (px)
DESCRIPTION
how bank are senctioning loan and issue credit card
Citation preview
Project Report
Credit Card and Loan
Assessment
Submitted by
Vedansh Jain
Roll No. JGNPGDM0856
PGDM First Batch
(2008-2010)
Submitted to
1
Jagannath Institute of Management
Studies
48/4 Knowledge Park III, Greater
Noida,U.P
Acknowledgement:
“For any successful work, it owes its thanks to many”
Summer training is one of the most vital and active part
of the curriculum of management students. I did the
work as a management trainee at AXIS Bank.
Hard work, knowledge, dedication & positive attitude all
are necessary to do any task successfully but one
ingredient which is also very important than others and
at times more important than others is cooperation &
guidance of experts and experienced person.
Firstly I would like to extend my heartfelt gratitude to
Mr. Navneet Ralli the Branch Manager, for his
guidance throughout the project. Without his support
and cooperation I would have failed in my endeavours
and targets in the summer training.
I emphatically express the regards and gratitude
towards my speculative guide Mr. Shakti Singh
2
Rathore (BSM), Mr. Kapil Singh Shekhwat and Mr.
Om Thanvi For his expert and invaluable guidance,
constant encouragement, and constructive criticism to
accomplish such laborious and exhaustive work timely
and perfectly.
I avail the opportunity to thanks Mr. Lokesh Agarwal,
Mr. Vishal Sharma and Mr. Hasmukh who helped to
ease my burden of works and extended their helping
hands during my training.
I would also like to thank all the Staff of Axis Bank,
Jaipur for their invaluable suggestion and cooperation
to complete my project successfully.
CONTENTS
Serial No.
Particular Page No.
1 Candidate Declaration 5
2 Certificate From Organisation 6
3 Executive Summary 7
4 Banking In India: Overview 9
Nationalized Bank In India 12
Private Sector bank In India 13
5 About AXIS Bank 14
Retail Banking 19
Corporate Banking 19
Financial Performance 21
6 Easy Credit Card 22
3
Variants 23
Pricing 24
Process 28
Documentation 31
7 Loan Assessment 32
1. Home Loan 33
Documentation 34
Interest Rate 35
2. Personal Loan 36
Normal Salaried Individual 36
Salaried Professional 37
Salaried Doctor 38
Documentation 39
Interest Grid 39
Serial No.
Particular Page No.
3. Loan Against Property 40
Salaried Individual 40
Professional 41
Self Employed Individual 42
Documentation 43
Interest Grid 45
4. Auto Loan 46
Category Grid 46
Salaried Employee 47
Self Employed 48
Partnership 49
Private and public limited 50
4
company
Documentation 51
Interest Rate 53
5. Agriculture Loan 54
Commodity Power-(Warehouse Receipt financing)
54
Agricultural Gold Loan ‘Power Gold’
60
Power Gold Plus 64
Kisan Power 65
Direct Financing to Farmers for Cattle Loans through Dairies/ Cooperatives
76
Direct Financing to Farmer Under Contract Farming
81
6. Education Loan 868 Abbreviations and Acronyms
(Glossary)88
9 Appendix 91
Candidate's Declaration
I hereby declare that the project report titled “Credit
Card and Loan Assessment” is prepared during
completion of training of 45 days on 30th June, 2009
and it is an authentic record of my work carried out
5
under the guidance of Mr. Shakti Singh Rathore,
Axis Bank Jaipur.
VEDANSH JAIN Date: June 30, 2009
Roll No. JGNPGDM0856 Place: Jaipur
PGDM First Batch
(2008-2010)
Certificate
TO WHOMSOEVER IT MAY CONCERN
6
This is to certify that the above declaration made by
MR. VEDANSH JAIN, PGDM (Finance)-First Batch,
Jagannath Institute of Management Studies, Greater
Noida, U.P., for the successful completion of 45 days
summer training at AXIS Bank, Jaipur, and preparation
of project report titled “Credit Card and Loan
Assessment” is true and fair to the best of my
knowledge and belief.
Mr. Shakti Singh Rathore Date: June
30, 2009
Authorised Signatory Place: Jaipur
Axis Bank Jaipur.
Executive Summary:
7
Introduction:
I have done my training from Axis Bank, Jaipur Branch. I
learned there working and functioning of the bank. Axis
bank is one of the fastest growing banks in India and
has extremely competitive and profitable banking
franchise. Axis bank is the first new generation private
sector bank to be established in India under the overall
reform programme initiated by Government of India in
1991.Axis bank started its operation from 1994.
Objective:The main objective of undergoing training of 6 weeks
(15th May, 2009 to 30 june, 2009) is to:
Understand how banking activities actually takes
place.
To gain an insight and in depth knowledge about
banking products.
To know how the other services provided by bank to
its customer.
To learn about corporate banking culture in India.
Research Methodology:The method adopted to carry out this report was based
on both the primary and secondary sources.
Primary sources:
8
Interaction with the existing employees and deputy
manager.
Personal interaction with the customers visiting to the
bank.
Secondary sources:
Manuals of the bank.
Websites
Journals
Circulars
Annual Report
Learning and Conclusions:
It was a great opportunity to gain an insight about
various activities that takes place in the bank.
I came to know what banking is all about.
About AXIS Bank.
The kind of products and services are provided by
AXIS Bank.
This training increased my confidence level and it
was a great opportunity to learn about corporate
culture and etiquettes.
It was a great opportunity to develop persuasion skills
and communication skills.
9
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 of Bengal" 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 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's
10
independence 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 the end 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 money and
lost interest in keeping deposits with banks.
Subsequently, banking in India remained the exclusive
11
Other Nationalized Banks
Other Nationalized Banks
RESERVE BANK OF INDIACentral Bank and supreme monetary
authority
RESERVE BANK OF INDIACentral Bank and supreme monetary
authority
Non Scheduled Banks
Non Scheduled Banks
Foreign Banks
Foreign Banks
Private Sector Private Sector
SBI & Associates
SBI & Associates
Regional Rural Banks
Regional Rural Banks
Urban Cooperatives
Urban Cooperatives
State Cooperatives
State Cooperatives
Scheduled Banks
Scheduled Banks
Cooperative
Cooperative
Public Sector Public Sector
Commercial
Commercial
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
Comptoire d'Escompte de Paris opened a branch in
Calcutta in 1860, and another in Bombay in 1862;
branches in Madras and Pondichery, 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 banking centre.
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 and other
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 a number of
Indian joint stock banks. All these banks operated in
different segments of the economy. The exchange
12
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 of
banks 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.
13
Nationalized Banks in India:
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 cheap finance 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
14
➢ 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 sector banks
came to occupy dominant role in the banking structure.
Private sector banking in India received 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
15
receive an 'in principle' approval from the Reserve 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
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:
Bank of Rajasthan ➢Bharat Overseas Bank
Axis Bank ➢Catholic Syrian Bank Centurion Bank of Punjab ➢Dhanalakshmi
Bank Federal Bank ➢HDFC Bank ICICI Bank ➢IDBI Bank IndusInd Bank ➢ING Vysya Bank Jammu & Kashmir Bank ➢Karnataka Bank Karur Vysya Bank ➢Kotak Mahindra
Bank SBI Commercial and International Bank ➢South
Indian Bank United Western Bank ➢ YES Bank
16
17
About AXIS:
Start on 1994
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:Ahemdabad
Central Office:Mumbai
18
Total Branches:827
ATM:3595
Bank Strengths:Retail Banking
Corporate Banking
Directors: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
19
Competitors:Private Sector competitors:
HDFC
ICICI
Public Sector competitors:SBI
PNB
Profile:Axis Bank is one of the fastest growing banks in the
country and has an extremely competitive and
profitable banking franchise evidenced by:
Comprehensive portfolio of banking services include
Corporate Credit, Retail Banking, Business Banking,
Capital Markets, Treasury and International Banking.
The Position as on 31st March 2009 was as under: -
Balance Sheet Size Rs 1,47,722 crore
Total Deposits Rs 1,17,374 crore
Net Advances Rs 81,557 crore
Investments Rs 46,330 crore
Net NPA 0.35%
20
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*365 ‘Anywhere Banking’,
in order to render the best customer service to its 5.5
million customer base.
Mission and Values: Customer Service and Product Innovation tuned to
diverse needs of individual and corporate clientele.
Continuous technology up gradation while
maintaining human values.
Progressive globalization and achieving international
standards.
Efficiency and effectiveness built on ethical practices.
Customer Satisfaction through providing quality
service effectively and efficiently.
"Smile, it enhances your face value" is a service
quality stressed on Periodic Customer Service Audits.
Maximization of Stakeholder value.
Success through Teamwork, Integrity and People.
21
Retail Banking: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 year growth of 29%.
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 to garner 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
22
business 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 Assets
Cash Management Services
Government Business
Corporate Credit:Current Account deposits grew by 24% yoy, from Rs.
20,045 crores as at end March’08 to Rs. 24,822 crores
as at end March’09. The daily average Current Account
balances over the year grew by 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. This includes
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 proposals being subjected to critical scrutiny by
23
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 to
infrastructure 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 a view to containing
concentration risk and facilitating portfolio
diversification.
Financial Performance: Profit after tax up 69% to Rs.1,815.36 crores.
Net Interest Income up 43% to Rs.3686.21 crores.
Other Income up 61% to Rs.2,896.88 crores.
Fee Income up 64% to Rs.2,447.35 crores
Deposits up 34% to Rs.1,17,374 crores.
24
Demand Deposits up 37% to Rs.50644 Crores.
Advances up 61.79% to Rs.81,557 crores .
Retail Assets up 18% to Rs.16,052 crores.
Network of branches and extension counters
increased from 827.
Total number of ATMs 3595.
Net NPA ratio as a percentage of net customer assets
down to 0.35% 0.36% from 0.36 %.
Earning per share (Basic) increased from Rs.31.31 to
Rs50.27.
Proposed Dividend up from 45% to 60%.
Capital Adequacy Ratio stood at 13.69% as against
the minimum regulatory norm of 9.26%.
**********************
Easy Credit Card:
What is Easy Credit Card?A Credit Card that is ...
25
Easy for customers to get!
Easy for us to sell!
Why is it “Easy” for the Customer? Flexible Credit Limit (Up to 80% of the FD amount)
High Cash Withdrawal Facility
Minimum Documentation (No Income Proof/KYC
required)
Fast Delivery of the Card
Substantially Lower Interest Rate of 1.95% p.m.
Guaranteed Approval
Free Credit Period of 20-50 days
Comprehensive Insurance
Attractive Reward Points
Other benefits of a regular credit card
Easier than Other Modes of Payment:
Easier than Other Credit Cards Guaranteed Approval
26
No 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 Package Ease of Online & MOTO transactions
Easier than O/D against FD Interest free credit period of up to 50 days Reward Points Complimentary Insurance Record of transactions
Easier than Cash Convenience of Plastic Complimentary Insurance Reward Points Record of transactions
Variants:
Available in three variants:
27
Easy Platinum Premium (In sourcing locations only)
Easy Platinum
Easy Gold
Pricing:
TypeJoining
FeeAnnual
Fee
Annual Fee Waiver
for Year 2
Platinum
Premium 5,000 1,000Customer
Spends
> Rs.2,00,000
in Year 1
Platinum 1,000 500
Customer
Spends
> Rs.2,00,000
in Year 1
Gold Nil
100
(Two
Years
onwards)
Customer
Spends
> Rs. 50,000 in
One Year
28
* Annual Fee can be adjusted against Reward Points
Easy Platinum Premium:
Platinum Comprehensive Insurance Cover
Fuel savings of 2.5% at All Petrol Pumps
Attractive Rewards Program
Free Espirit watch worth Rs.6,000Attractive
Platinum Preferential Features
Chip Card for Additional Security
Complimentary Priority Pass Membership
International Concierge Services
Exciting shopping offers
Platinum Standard Features
Low Interest Rate of 1.95% p.m.
Credit Limit of Choice
High Cash Withdrawal Limit of 40% of Credit Limit
Balance Transfer Options
29
Easy Platinum:
Comprehensive Insurance Cover
Fuel savings of 2.5%at ALL Petrol Pumps
Attractive Rewards Program
Platinum Preferential Features: Chip Card for Additional Security
Complimentary Priority Pass Membership
International Concierge Services
Exciting shopping offers
Standard Features: Low Interest Rate of 1.95% p.m.
Credit Limit of Choice
High Cash Withdrawal Limit of 40% of Credit Limit
Balance Transfer Options
30
Easy Gold:
Comprehensive Insurance Cover
Fuel savings of 2.5%at ALL Petrol Pumps
Attractive Rewards Program
Standard Features:
Low Interest Rate of 1.95% p.m.
Credit Limit of Choice
High Cash Withdrawal Limit of 40% of Credit Limit
Balance Transfer Options
31
Process Simplified:
Step 1
Crédit Card Application Form
No Only One Single Application Form
Letter of Lien
Addendum to Credit Card Application Form
Draft Letter
Step 2
Double KYC NoSeparate KYC for Easy Credit Card
Step 3
FD retained at the branchNo
FD receipt to remain with the customer
Only photocopy to be attachedLien marked centrally on Finacle
Step 4
Customer signature on form to be verified by Branch heads
NoCustomer signature to be verified by Branch head/ BSO/BSM
Step 5
Card dispatched to Branch No
Sent to customer in Courier serviceable areas
32
Sent to branch in Courier non-serviceable areas
Application Processing- Existing FD Customers:
Application Pickup Easy Credit Card App Form filled
Copy of FD receipt attached
No Additional Documents
At Branch Application Signed-off by Branch head/ BSO / BSM
Lien Stamp on FD by any Branch official–Original
returned to customer
CC-APU Centralized Lien marking
Data Entry , Card & Limit Setup
No CIBIL, No FV, No TV
Dispatch Direct to customer in Courier serviceable areas
To branch in Courier non-serviceable areas
33
Application Processing -New FD Customers:
Application Pickup
Easy Credit Card App Form filled
FD Form filled with KYC & PAN only by BDE/Any
Branch Staff
At Branch Sign-off by Branch head/ BSO/ BSM
CPU-Mumbai FD Data Entry
FD Account No. entered on Easy Card Application
Form
CC-APU Centralized Lien marking
Data Entry , Card & Limit Setup
No CIBIL, No FV, No TV
Dispatch
34
FD & Card dispatched together
Direct to customer in Courier serviceable areas
To branch in Courier non-serviceable areas
Documentation:
Existing FD Customers: Easy Card Application Form
Photocopy of FD Certificate with Notification of Lien
as follows: “Lien marked for Issuance of Easy Credit
Card” To be written, signed & stamped by any Branch
Official on the front side of the FD receipt
FD Certificate with notification returned to customer
Most Important Document (MID)
New FD Customers: Easy Card Application Form
Duly Completed FD Application Form (ONLY by
BDE/Any Branch Staff)
Most Important Document (MID)
35
************************
Loan Assessment:
Types of Loan:
Home loan
Personal Loan
Loan Against Property
Auto loan
Agriculture Loan
Education Loan
36
Home Loan:
CriteriaSalaried Individual
Professionals
Self Employed Individuals
Min. work exp (Years)
2 (3 if current employment <1
year)3
Min net income (Rs.)
15000pm 1.50 lacs pa
Min ~ Max age (Years)
>24 ~ <= than superannuation
at loan termination
>24 ~ <= 65 at loan termination
Min ~ Max Tenor
(Months)Maximum 240
Maximum 240
Maximum 240
Maximum LTV 80%
Clubbing of Income
Allowed for spouse only
Pre NIL
37
payment penalty
Processing fee
1% of loan amt + 10.30% Service Tax as applicable
Other Products / Variants
Takeover of existing HL from other financier (Balance Transfer)
Allowed
Refinance Option
Allowed for properties purchased in last 6 months
Documents required for Home Loan:
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 Income:
38
Latest 3 salary slip showing all deductions IT 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 Qualification:
Degree / Diploma - proof of professional qualification
Interest Rate:
Home loan amount Applicable rate of interest
Up to Rs. 30 Lacks 9.00% p.a
Above Rs. 30 Lacks 9.50% p.a.
Other terms & conditions:
The property should be located within 50 Km radius
of nearest Branch/RAC.
39
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.
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:
CriteriaSalaried Individual
Normal
Interest rate as per category
As per category grid
Min. work exp (years) 2
Min net income (Rs. 15,000
40
p.m.)
Min ~ Max age> 21 & < superannuation at loan termination
Min ~ Max loan amt (Rs.)
1.25- 15 lakes (1.25 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/Guarantor
Optional
Banking relationshipsCat A & B - Last 3 months
Cat C & D - Last 6 months
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 13 depending upon tenure.
Residence Present residence => 6 months
CriteriaSalaried Individual Prof
(MBA, Engineer, Architect, CA, CS, ICWA)
Interest rate as per category As per category grid
Min. work exp (years) 2
Min net income (Rs. p.m.)
15,000
41
Min ~ Max age> 21 & < superannuation at loan termination
Min ~ Max loan amt (Rs.)
1.25 - 15 lakhs (1.25 lakh loan is only available for customers having salary power relationship)
Min ~ Max Tenor (months)
12 ~ 60
Security/Collateral/Guarantor
Optional
Banking relationshipsCat A & B - Last 3 months
Cat C & D - Last 6 months
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.
Residence Present residence => 6 months
Degree / Diploma - proof of professional qualification
Criteria Salaried Doctors
Interest rate as per category
Doctor in Cat B/C/D at a min of MBBS/BDS/ MS/MD = Cat B rate
Min. work exp (years) 3
Min net income (Rs. p.m.) 15,000 (gross)
42
Min ~ Max age >24 and <65 at loan termination
Min ~ Max loan amt (Rs.)
1.25 - 15 lakhs (1.25 lakh loan is only available for customers having salary power relationship)
Min ~ Max Tenor (months)
12 ~ 60
Security/Collateral/Guarantor
Optional
Banking relationships Last 6 months
Phone landline / mobile / WLL mandatory
Processing fee 2% of loan amt
Eligibility calculation
Max loan = (Gross monthly salary - obligations) x Multiplier. Multiplier varies from 5 to 15 depending upon tenure.
Residence Present residence => 6 months
Proof of Qualification
Degree, Registration with respective state medical councils Or Dentists Association.
Documentation:
Documents Required
Proof of Identity, Signature & Age
Passport/ Voter's Card/ Driving License/ PAN card & Photograph.
Proof of Telephone Bill
Latest bill of landline/ mobile/ WLL stating name of borrower or
43
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 all deductions and Last 2 years Form 16 along with current dated salary certificate
Bank Statement / Pass Book where salary is Credited
Cat A & B - Last 3 months, Cat C & D - Last 6 months
Interest Rate Grid:
Interest Rate Grid
Personal Loans ROI (only Fixed)
Salaried - Cat A 15.00%
Salaried - Cat B 17.00%
Salaried - Cat C 19.00%
Salaried - Cat D 21.00%
Loan against Property:
Criteria Salaried Individual
44
Work Experience (Years)
Min 1 Year If Total Exp 2 Or (3 If Current Employment <1 Yr)
Min Net Income (Rs.)
7500 Per Month
Min ~ Max Age (Years)
>24 ~ <= Than Superannuation At Loan Termination
Min ~ Max Tenor (Months)
Residential Property Up To 180 Months,Commercial Property Up To 120 Months
Maximum LTVResidential Property Up To 60%, Commercial 50%, Commercial Purchase 80%
Pre Payment Penalty
2% Will Be Charged If The Amount Exceeds 25 % Of The Principle Outstanding During A Quarter, Otherwise No Penalty.
Processing Fee 1% Of Loan Amt + Service Tax As Applicable
Takeover Of Existing Mortgage
With Additional Refinance
Allowed
Criteria Professionals
Work Exp (Years) Min 3 If Doctor Else 4
45
Min Net Income (Rs.) 1.50 Lacs Per Year
Min ~ Max Age (Years) >24 ~ <= 65 At Loan Termination
Min ~ Max Tenor (Months)
Residential Property Up To 180 Months, Commercial Property Up To 120 Months
Maximum LTVResidential Property Up To 60%,Commercial 45%,Commercial Purchase 75%
Pre Payment Penalty
2% Will Be Charged If The Amount Exceeds 25 % Of The Principle Outstanding During A Quarter, Otherwise No Penalty.
Processing Fee1% Of Loan Amt + Service Tas As Applicable
Takeover Of Existing Mortgage
With Additional Refinance
Allowed
Criteria Self Employed Individuals
Work Exp (Years) Min 3
46
Min Net Income (Rs.)
1.50 Lacs Per Year
Min ~ Max Age (Years) >24 ~ <= 65 At Loan Termination
Min ~ Max Tenor (Months)
Up To 120 Months Irrespective Of Property Type
Maximum LTVResidential Property Up To 60%, Commercial 45%, Commercial Purchase 70%
Pre Payment Penalty
2% Will Be Charged If The Amount Exceeds 25 % Of The Principle Outstanding During A Quarter, Otherwise No Penalty.
Processing Fee 1% Of Loan Amt + Service Tax As Applicable
Takeover Of Existing Mortgage
With Additional Refinance
Allowed
Documents required for Loan against property:
For Salaried Individual:
47
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 Income Latest 3 Salary Slip Showing All Deductions
Bank StatementLast 6 Months Where Salary/Income Is Credited
Proof Of Qualification
N/A
For Professionals:
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 Qualification
Degree / Diploma - Proof Of Professional Qualification
For Self Employed Individuals:
48
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 Qualification
N/A
Other Terms & Conditions:
The property should be located within 50 km radius of
nearest branch.
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.
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.
49
Loan against property (lap) will be offered only
against fully constructed properties.
No lap will be offered against plot of land
Interest Rate Grid:
Personal Loan Interest Rate of Interest
Residential Property 12.75%
Commercial Property 13.75%
50
Auto Loan:
Category Grid
Category A Maruti 800, Omni Van, Matiz
Category B
(Upto 5 lakh)
Alto, Wagner, I10, spark, Swift, Indica
Vista, Palio, Getz, a-star, Zen
Category C
(Upto 10 lakh)
Swift Dezire, Verna, Esteem, Honda
City, Acent, Verna, Fista, Indigo CS,
Optra, Scorpio,Logan
51
Category D
(More Than 10 Lakh)
Safari, Corela, Endeavour, Optiva,
Skoda,
Criteria Salaried
Age Min 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
Work-Experience
Minimum 2 Years Of Total Employment
Telephone
Landline / WLL Phone At Residence. In Case No Phone At Resident Post-paid Mobile Connection With Resident Address Required.
Foreclosure 4% + Principal Outstanding
52
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
3 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)
Work-Experience
Minimum 3 Years In Business
Telephone
Landline / WLL Phone At Residence. In Case No Phone At Residence Postpaid Mobile Connection With Residence Address Required.
Foreclosure 4% + Principal Outstanding
53
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 = 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 Year
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). Min Turnover Of Rs 4.5 Lacs
Work-Experience Minimum 3 Years In Business
Telephone
Landline / WLL Phone At Resident. & Office For Loan Executing Partner. In Case No Phone At Resident, Post-Paid Mobile Connection With Resident. Address Is Required
Foreclosure 4% + Principal Outstanding
54
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 of loan maturity for the loan executing director/authorized signatory
Loan amount Minimum Rs. 100,000
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 50 Lacs. (No Cash Loss in the last 2 yrs)
Work-experience Minimum 3 years in business
Telephone
Landline / WLL phone at Resident & Office for loan executing director/authorized signatory. In case no phone at Resident, post-paid mobile connection with Resident Address is
55
required
Foreclosure 4% + principal outstanding
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:
Proof of IdentityPassport / Voter’s 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 available June onwards)
Address Proof (of the residing
city)
Ration Card/Latest Electricity Bill/Latest Telephone Bill/Passport/Latest Credit Card Bill/ Driving License
Signature Verification
Passport copy/ Driving License with Photograph/ Banker’s Verification
Additional Document
NA
For Self-Employed:
56
Proof of Identity Passport / Voter’s 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 Verification
Passport copy/ Driving License with Photograph/ Banker’s Verification
Additional Document
Declaration from Proprietor
For Partnership Firms:
Proof of Identity
Copy of Partnership Deed & the following documents required for the loan executing partner: Passport / Voter’s Card / Driving License with Photograph/ PAN card
Proof of Income
Audited 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
Banker’s Verification
Additional Documentation
Authority letter signed by all partners
For Private & Public Ltd. Companies:
Proof of Copy of Memorandum & Articles of
57
Identity
Association & the following documents required for the loan executing director/authorized signatory. Passport / Voter’s 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
Banker’s Verification
Additional Documentation
List of Directors, Share Holding pattern, Copy of Board Resolution
On Road Price = Ex Showroom rate + Insurance + Road Tax + Registration charges
Interest Rate Grid:
Interest Rate Grid (Direct Branch Source)
Car Category
Upto 35 months
36 - 60 months
60 – 84 months
Cat A 13.00% 12.00% 13.50%
Cat B 13.00% 11.50% 13.50%
Cat C 13.00% 11.50% 13.50%
Cat D 13.00% 11.00% 13.50%
58
Interest Rate Grid (Dealer/DSA sourcing)
Car Category
Upto 35 months
36 - 60 months
60 – 84 months
Cat A 14.50% 13.25% 15.50%
Cat B 14.50% 12.50% 15.50%
Cat C 14.50% 12.00% 15.50%
CAT D 14.50% 11.75% 15.50%
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:
59
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
commodity specific margin amount
Rate of Interest:
BPLR- 4.75%; at present 15.25 % p.a. payable with the
principal repayment.
Margin:
Min 40%.
Tenure of the Loan:
The maximum tenure of each loan shall be 12 months.
60
Valuation:
The value of the commodity as security shall be the
lower of the following:
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.
Price provided by the Commodity Business Group,
Central Office from time to time for various
commodities
Insurance:
The stocks pledged to the Bank should be insured
adequately with Bank clause.
Security Upto Rs. 200,000:
Primary-: Pledge of warehouse receipts duly endorsed
in Bank’s favour
Security over Rs. 200,000:
Primary-: Pledge of warehouse receipts duly endorsed
in Bank’s favour, Collateral-: Third party Guarantee
Disbursement:
The individual borrower availing this facility will have to
open an account at the concerned local branch (the
61
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.
Selection of the Warehouse/Cold Storage:
The warehouse/cold storage has to have adequate
facilities (like aeration, pest control, loading and
unloading facilities, electricity, security, etc.) to allow
for the storage of the produce with minimum loss in
quality and quantity. 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.
Security from Warehouse Owner/Manager:
Have to sign M&C agreement with Bank to buy or
arrange for the sale of the stock in case of default of
farmer Letter of guarantee/comfort letter is to be obtain
(in absence of the letter of guarantee).
Monitoring & M&C Agent Charges:
M&C agent has to monitor the security. The quality and
quantity report has to be sent to the branch on a 62
monthly basis. Normally 1% of the loan amount.
However, branches can pay maximum 1.5% of the loan
amount wherever required.
Other Conditions:
Post dated cheques to be collected from borrowers
Repayment:
Bullet repayment along with interest on due date.
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
Documents to be executed by the Borrower:
DP Note
DP delivery letter
Letter of waiver
Pledge Agreement
Warehouse receipt
63
Documents to be executed by the M&C
Agent:
Management and Collection Agreement: To be finalized
in consultation with the Law Department
Event of Default:
In the event of default of a borrower, M&C agent should
arrange 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 and adjust the
sale proceeds against the amount outstanding from the
borrower. The price at which the pledged commodity is
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.
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
64
Branches would keep the above mentioned registers in
physical form 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
Rating Tool for Farmer/Agriculture:
Score Sheet for Agricultural Loans(For individuals)
No Parameters Score Scoring
1. Type of land holding
Own: 5Leasehold: 3
2. Extent of land under cultivation
More than 10 acres: 5More than 5 and Upto 10 acres: 35 acres and below: 2
3. Type of crop under cultivation
Cash crops: 5Non cash: 3
4. Irrigation
Drip/Sprinkler irrigation: 5Well/canal: 3Dry farming: 1
65
5. Marketing arrangement
Through Co-Operative Societies/Private corporates: 5Through Govt. agencies: 3Direct: 1
6.
Source of income from activities allied to agriculture/other source of income
Yes: 3No: 0
Bench marking: (Out of 28):
Score above 18 A115-18 A210-14 A3
Score below 10 A4
Agricultural Gold Loan – ‘Power Gold’:
Eligibility: Any individual who has completed 18 years of age
and is involved in agriculture/allied activities.
In case one spouse is availing of the loan against gold
ornaments owned by the other, the borrowing should
be in the joint names.
Gold bullion will not be accepted as security.
Only original owner of the Jewellery.
66
Jewellery below 20 carat should be avoided.
Limit :
Minimum - Rs.15,000
Maximum - Rs.10,00,000
Loan Amount and Margin:
Loan Amount = (Net weight. of ornament in terms of 22
carat) * (Advance rate)Net weight of ornament in terms
of 22 carat = (Net weight of ornaments * Purity)/ 22
Advance rate at present: Rs.740/- per gram
BH can selectively increase advance rate by Rs.10/-
Margin Call:
During the tenure of the loan, if the margin of the loan,
based on the market value of the gold, falls below 20%,
the borrower would be called upon to deposit the
shortfall. If the borrower fails to pay the shortfall within
15 days, the Bank will have the right to dispose off the
gold ornaments.
Security:
67
Primary - Nil
Collateral - Pledge of gold ornaments
Custody Charges: If gold value > 5 times loan amount
Rs. 1000 + ST per year
Pricing:
For limit up to Rs. 1.00 Lakh: BPLR-4.25%
For limit above Rs. 1.00 lacs: BPLR-4.75%
Interest application is Annual and to be paid along
with principal
Penal interest:
2% per year on overdue amount.
Disbursement:
Up to Rs.50,000/- in Cash.
Above Rs.50,000/- by Pay Order.
Documentation:
Following documents should be obtained from borrower.
Application form
D.P.Note
D.P.Note delivery cum waiver letter
68
Letter of Pledge
Proof of agricultural activity (copy of land records,
land revenue tax receipts etc.)
Declaration of ownership of the ornaments pledged
Authorisation from the borrower for disclosure of
information
The following document should be obtained from the
appraiser
Certificate of valuation
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
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. Bank’s
indemnity policy will be obtained by the Bank
centrally.
Sanctioning Authority:
69
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 the borrower after
18 months. The repayment schedule should be aligned
with the crop harvest cycle.
Release of the gold ornaments on repayment by borrower
The 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 taking
delivery 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 the inspecting
authority at the time of the inspection.
70
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.
Power Gold Plus:
Difference from Power Gold:
Minimum Rs. 2.00 lacs to Rs. 10.00 lacs.
Monthly interest application.
Drawing Power: 80% of value of the ornament.
Field inspection report to confirm the activity is to be
undertaken.
Maximum 6 redemptions and pledges can be
permitted in a year, Rs.250/- plus ST will be charged
per redemption/pledge.
Custodian charges of Rs.3,000/- plus ST, will be
charged per year if the value of the security is more
than 5 times the loan amount.
Pricing:
Direct Agriculture: BPLR–3.75%.
71
Indirect Agriculture: BPLR-3.25%.
Fee: 0.25% subject to maximum of Rs.1,000/-.
Appraiser Fee: 0.25% subject to maximum Rs.1,000/-.
Product Features:
CC facility against gold (CCAPG)
Target Group:
For allied agricultural activities like poultry, dairy,
fisheries etc- Direct Agriculture.
Financing agriculture input dealers, Arthias/
Commission agents etc – Indirect Agriculture. Crop
cultivation should not be financed.
Kisan Power Scheme:
Purpose:Production Credit i.e. for meeting cost of crop
cultivation/allied agricultural activities.
Investment Loan for meeting any investment need,
other than production expenses, that can improve
borrower’s farm productivity i.e. purchase of
agricultural equipments, land levelling, land
development, vehicles etc.
Consumption Loan for meeting consumption needs
Financing of all allied agricultural activities except the
following is eligible under Kisan Power-No tractor /trailer
72
shall be financed under the Kisan Power Scheme.
Poultry shall not be financed under Kisan Power Scheme
Eligibility:Any individual who is a major Owner Cultivators Tenant
Cultivators and Share Croppers may be financed
selectively. Minimum landholding should be two acres
of cultivable land. Landholding has to be supported by
land documents like 7/12 extract, Patta, chitta, Adangal
(confirming ownership, crop pattern) etc. Joint holding
(single or multiple locations) up to five persons are
permitted.
In case the borrower is more than 60 years of age, a co-
borrower is mandatory. The co-borrower should be a
family member / relative of the Borrower.
Radius of Operation:Radius of operation restricted to 50 km from the
Branch. However, VPAF may allow financing select
cases under the scheme beyond 50 kms and upto 75
kms, provided the distance will not come in the way of
effective follow up and recovery.
Nature of Facility:
73
Term loan – Consumption Loan and Investment Loan
Cash credit – Production Credit
Sanctioning authority should ensure that a cash credit
facility is extended in all cases without exception
Amount of Loan:Overall Limit:
Minimum: Rs. 25001/-
Maximum: Rs. 25,00,000/-
Individual Components:
Facility Min Limit Max Limit
Investment Loan 25001/ 24,74,999/-
Production Credit* 25,001/ 25,00,000/-
Consumption Loan 50,000/ 5,00,000/- For States of Punjab, Rajasthan & Haryana and3,00,000/- For all other states
*Production Credit is Mandatory
Assessment/Fixation of Limit:Overall Limit
The overall loan amount/ credit limit will be fixed on the
basis of 5 times annual farm income or 70% of the
value of collateral security whichever is less subject to
maximum of Rs. 25,00,000/-
74
Production Credit
For any Kisan Power account, Production Credit is a
must. While calculating Production Credit Limit, scale of
finance should be the basis of assessment, which is
decided every year by District level Technical
committee (DLTC). The Production Credit Limit can be
maximum upto 150% of the amount of Scale of Finance
advised by DLTC. Crop insurance premium may be
debited to production credit, but the outstanding should
be within limit. In other words the disbursement needs
to be net of crop insurance premium.
Production Credit Limit may be extended for leased
land also, subject to the terms and conditions on
security/guarantee etc.
Consumption Loan
The Consumption Loan amount should not be more
than 3 times of annual farm income, and subject to the
security criteria, within the upper cap of Rs. 5 lacs/3
lacs as the case may be.
The assessment of consumption requirement is to be
based on the written declaration of the applicant, and
100% of the declared amount would be allowed subject
to maximum limits specified.
Investment Loan
75
For purchase of Two/Three/Four Wheelers used for
carrying farm goods or Farm Machinery-:
In such cases, the branches shall ensure that the price
of the two/three/four wheelers or machinery should be
equal to or less than the MRP (maximum ex showroom
price, which includes all the state level taxes, but
excludes the registration fee, road tax and insurance)
published by the manufacturer. The actual cost of
registration, road tax and insurance can be financed.
In case of vehicles, the Bank’s interest is to be noted in
the RC book and the vehicles are to be insured under a
comprehensive insurance policy. Along with invoice
receipt, RC book copy, a photograph of the vehicle and
the Borrower standing nearby is to be obtained and
kept on record. This may be obtained within 45 days of
disbursement. Our charge on the vehicle should be
explicitly mentioned on the vehicle.
In respect of development works like deepening/drilling
of wells, construction of pump house/sheds/cattle sheds
etc, the estimates made by the farmers themselves can
be accepted, provided the cost does not exceed more
than 20% of the unit cost approved for that
activity/purpose in that region by NABARD.
Security:
76
Upto Rs. 50000/-
Primary: Hypothecation of crops and other assets
Collateral : Nil
Over Rs. 50000/-
Primary : Hypothecation of crops and other assets
Collateral: Mortgage/ Charge of land owned by the
prospective borrower upto 140% (1.4 times) of the
amount of loan as per State laws.
Margin:Investment Loan for
creation of assets and
allied activities (except
vehicles)
25%
Investment Loan for
vehicles 30%
Production Credit
Nil. The labour input by the
farmer is considered as the
margin. Hence no separate
cash margin is insisted for
crop loans.
Consumption Loan NIL
Rate of Interest:
For consumption loans:
77
Amount Interest Rate
Loan from Rs 50,000 upto Rs
2,00,000
BPLR 1.50%
Loan from Rs 2,00,001 upto Rs
5,00,000
BPLR 1%
For all other loans -:
Amount Interest Rate
Limit up to Rs. 50,000 BPLR 3.50%
Loan from Rs 50,001 upto Rs
2,00,000
BPLR 3%
Loan from Rs 2,00,001 upto Rs
5,00,000
BPLR 2%
Processing Fee:
Fee @ 0.50% for production credit and 1.00% for
Investment Loan and Consumption Loan. Subject to a
minimum of Rs.500/-. Service tax is to be recovered at
the applicable rate.
Sanctioning Authority may at their discretion allow
reduction/waiver are free to recover a higher processing
fees on selective basis.
Crop Insurance:
The production credit is to be covered under National
Agricultural Insurance Scheme (NAIS) provided by the
78
Agriculture Insurance Company of India Ltd (AICIL).
Zonal Offices/Advances cells are authorised to waive
this requirement.
Branches to debit actual crop insurance premium from
production credit account (CCAGR). However, no
overdrawing should be allowed. It is to be ensured that
the disbursement is made after keeping sufficient
balance for debit of all future insurance premiums.
Accident Insurance:All KCC holders shall be covered under Personal
Accident Insurance upto Rs.50, 000/- as per the extant
guidelines of Kisan Credit card scheme. This is done
under a master policy with Bajaj Alliance General
Insurance Co Ltd by Central Office and the premium
amount of Rs. 15 will be incurred by the Bank. Also, in
case of a claim (due to accidental death, partial
disability or total disability), branches should take up
the matter with Bank Assurance Cell in Retail Banking
department at CO for an early claim settlement. The
proceeds of insurance are to be credited to CCAGR
account of the borrower.
Insurance of Assets:All the securities (Building, equipment and Vehicles)
created out of the loan or otherwise are to be insured
79
for full value. Branches may take the help of our
insurance advisers for this purpose.
Disbursement:Wherever cash disbursement is to be made (in case of
Production credit/Investment Loan or Consumption
Loan), the funds should be credited to the operative
(SB/CC) account of the borrower and should be
withdrawn through cheque leaf.
Investment Loan
Investment loan is to be disbursed in one or more
instalments depending upon the progress of work.
In case of Investment loan for purchase of implements/
equipments/vehicles, the borrower should be asked to
deposit the margin money with the Bank, and the
disbursement is given to the
dealer/manufacturer/supplier directly by DD/ Pay order
along with margin.
In case the implement/ equipment is already purchased
by the Borrower, disbursement is permitted after
inspection by the Bank’s official and after getting the
stamped receipt and invoice. These purchases should
not be older than 75 days.
Cash disbursement may be made for purchase of
animals, construction of farm shed etc. and the relative
80
receipt is to be obtained within 45 days of
disbursement. The labour component in Investment
loan can be released in cash after getting written
request cum declaration from the Borrower.
Repayment:
Production Credit
Annual review and renewal in every three years.
Branches should encourage Borrowers to bring the sale
proceeds of their agricultural produce to their CCAGR
a/c .
Consumption Loan and Investment Loan
All the investment loans (except horticulture projects)
and consumption loan should be repayable within a
maximum period of 5 years. Repayment period up to 7
years is permitted in case of horticultural projects which
is inclusive of moratorium period upto maximum of 3
years. Sanctioning authorities to ensure that projects
having sufficient cash generation in the residual loan
period (I.e. total period minus moratorium period) to
ensure repayments only are considered. A suitable
moratorium may be allowed upto maximum of 2 years
in case of Investment Loan (except horticulture projects
and vehicle loans). The instalments should be
monthly/quarterly/Half yearly/yearly depending on
81
harvesting of crop and other income sources like dairy,
salary, other employment etc. depending on the income
stream the repayment of vehicle loans is to be fixed at
monthly/quarterly or half yearly intervals and the
maximum moratorium for vehicle loan is to be
restricted to 6 months.
Penal Interest:
2% p.a. on overdue amount.
Documentation:
Borrower:
Demand Promissory Note for Production Credit
Letter of waiver cum DP Note delivery letter for
Production Credit
Loan cum hypothecation Document – ACD 1.
Simple (Registered) Mortgage - ACD 2 / Equitable
Mortgage (ACD-4A & 4B).
Duly signed PDCs along with covering letter
Duplicate copy of the sanction letter duly signed by
the borrower/s and guarantor/s.
82
A letter addressed to the Village Revenue Officer
advising him to record the charge of the Bank for the
amount of the loan on the land records with him.
Guarantor:
Deed of Guarantee - ACD 3.
Additional Documentation for Vehicles
Power of Attorney for registering the vehicle in favour
of one of the joint accountholders in case there are
more than one borrowers
A letter of authority to the Bank for effecting
disbursement of the loan directly to the dealer.
RTO forms no.26, 29,30,34,35
MIS and Monitoring:
Monthly Control Returns to be submitted by the
branches/Cluster Heads to Advances Cell/Zonal Office
for reporting advances.
Appraisal and Sanction:
Application for Kisan Power should be obtained from the
proposed borrowers and also the guarantor in the
prescribed format. Branches need to offer comments in
the proposal on the value of the main security,
collateral security, i.e. value of the land being
mortgaged to the bank and the basis of calculation of
limit to the farmer. The agriculture officers/branch staffs
83
identified to deal with the scheme is to travel to each of
the individual centres to meet the applicants, verify the
details and put up the proposal for sanction to the
Branch Head/Cluster Head. The recommending and the
sanctioning authority should sign the proposal.
Pre sanction Visit:
The focus of visit should be on an evaluation of the
income stream of the borrower, and a comprehensive
assessment of credit needs taking into account track
record, credibility, capability, as well as technical
viability of the existing and proposed activities. Short-
term credit needs of the farmer should include all
requirements directly and indirectly related to
production, post harvest and household expenses.
Repayment capacity should be assessed on the basis of
aggregate household income from all sources including
crop production and ancillary activities.
The following details should be observed during farm
inspection:
Necessity of the development/s proposed to be
undertaken.
The crops cultivated and suitability of the crops
proposed after the development Past experience in the
activity In case of Investment Loan, it should be
84
ensured that the land on which the developments are
proposed is available as security.
Additional guidelines for Vehicles:Margin payment should be made to the Bank and under
no circumstances, the Borrower should be allowed to
pay directly to the dealer and produce a receipt.
Registration of vehicles and Stamped receipt from
dealers for the cost of the vehicle financed by us should
be obtained. Our charge on the vehicle should be
explicitly mentioned.
Registers to be maintained: Loan Application Receipt cum Disposal Register
Mortgage Register
Document Execution Register
Recovery:Sanctioning authority to designate an officer (In the
cluster HQ/ Stand alone branch) for recoveries. He
should monitor the accounts regularly and initiate
action, whenever required. Branches may seek help of
outsourced agencies for recovery. The appointment of
outsourced agency shall be sanctioned by VPAF after
doing a cost benefit analysis.
85
Direct Financing to Farmers for
Cattle Loans through Dairies/
Cooperatives:
Facility:Term Loan
Purpose:
Purchasing Milch animal
Construction of shed for keeping cattle.
Extent of Finance:The extent of finance shall be 85% of the cost of
animals/ shed constructed. The borrower’s own
contribution shall be to the extent of minimum 15% of
the total cost of cattle purchased/shed constructed. The
minimum indicative costs can be found out from the
State Level Unit Cost Committee of NABARD.
Amount:Minimum Amount: Rs. 30,000
86
Maximum Amount: Rs. 2,00,000
*The cost per cattle is assumed to be around Rs.
18,000-19,000. As per the eligibility criteria borrower
has to purchase a minimum of two milch cattle from
loan amount hence, the minimum availment should be
around Rs. 30,000 keeping a margin of 15 % by farmer.
Age:Any major individual pursuing dairy farming activity.Eligibility Criteria:Farmer should have a record of supplying minimum 10
litres of milk per day on an average for at least one
year with the Village Dairy Cooperative Society.
Margin:15 % of value of cattle to be purchased and/or shed to be constructed.
Rating:The score sheet for agricultural advances may be used
for the purpose. The farmer with a rating of A1 and A2
may be considered for the loan.
Tenor:Maximum period of Four Years from the first transaction
of disbursement to borrower with a maximum
moratorium period of 3 months before start of principal
repayment.
87
M&C Commission:The Dairy will be paid 0.5% of the loan amount as
commission for acting as an M&C agent for the Bank.
Documentation: Hypothecation cum Term Loan Agreement.
Guarantee from Village Dairy Cooperative Society
format is being finalized in consultation with Law
Dept. Personal Guarantee from member of dairy coop
society or third party.
Letter addressed by Borrower to Sponsor and Sponsor
to Bank.
Letter of comfort/Guarantee from Dairy/Milk Union
M&C Agency agreement between the Dairy and the
Bank.
Repayment:The repayment will be made through escrow
mechanism with a maximum moratorium of 3 months.
Thereafter, the loan is to be repaid in maximum 4 years
in monthly instalments.
Rate of interest:The pricing will be irrespective of the rating:
Loan Amount Rate
Rs. 30,000-2,00,000 BPLR-3%
Above Rs. 2,00,000 BPLR-3.5%88
Penal interest:2.00% p.a. on the overdue interest and instalments.
Prepayment Charges:In case of prepayment of loan within one year from the
disbursement: 2% of the amount prepaid.
Security:
Insurance:Cattle/Shed will be comprehensively Insured with the
beneficiary clause as UTI Bank Ltd. The premium
payable is added in the cost of the project.
Processing Fee:0.5% of the total loan amount
Other Terms and Conditions:
Primary: Hypothecation of cattle financed by the Bank
and other movable assets.
Collateral: Letter of Comfort/Guarantee by the Union
against the loan Guarantee from Village Dairy
Cooperative Society/Personal Guarantee. In case the
loan amount exceeds Rs. 1 lakh the same would be
further secured by noting of the Bank’s charge on the
land records of the borrower or create a mortgage of
land in favour of the Bank.
89
In case guarantee is not available from Village Dairy
cooperative, a guarantee from a person within the
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 should own his/her
own tractor/own at least 2 acres of irrigated land/4
acres of dry land employed in 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, having right to conduct inspections without
any prior notice. In case the Borrower stops supplying
milk to the Union the entire loan amount shall be
repayable in lump sum/ recalled.
Bench marking: (Out of 30)
Score of 26 and above A1
25-21 A2
16-20 A3
<16 A4
Score Sheet for Dairy/Milk Union:
90
Parameters Score Scoring
Financial Performance of Dairy/Union
Positive PAT for past 3 years: 5Positive PAT for 2 years out of 3 years: 3Negative PAT for for 2 years and above out of past 3 years: 0
Milk Payment cycle
Less than 7 days: 5More than 7 and Upto 15 days: 3More than 15 days: 0
Extension Services available through Dairy/ Milk Union:Cattle FeedVeterinary serviceArtificial Insemination
All three services provided: 5Two out of three services provided: 3One service provided: 2Not provided: 0
Average capacity utilisation of Milk Processing Plant over past 3 years
Above 60%: 5Between 60%-45%: 3Less than 45%: 0
Average daily milk supplied per farmer member over current financial year
More than 10 litres: 5Between 5-10 litres: 3Less than 5 litres: 0
Collateral Security available from Union
Guarantee or cash margin: 5Letter of Comfort: 3
91
Direct Financing to Farmers under Contract Farming:
Contract farming can be defined as an agreement
between farmers and processing and/or marketing firms
for the production and supply of agricultural products
under forward agreements, frequently at predetermined
prices. The arrangement also invariably involves the
purchaser in providing a degree of production support
through. The basis of such arrangements is a
commitment on the part of the farmer to provide a
specific commodity in quantities and at quality
standards determined by the purchaser and a
commitment on the part of the company to support the
farmer’s production and to purchase the commodity.
The intensity of the contractual arrangement varies
according to the depth and complexity of the provisions
in each of the following three areas:
Market provision: The grower and buyer agree to
terms and conditions for the future sale and purchase of
a crop or livestock product;
Resource provision: In conjunction with the
marketing arrangements the buyer agrees to supply
selected inputs, including the inputs required for land
preparation and technical advice;
92
Management specifications: The grower agrees to
follow recommended production methods, inputs
regimes and cultivation and harvesting specifications.
Parties to the contract farming financing:
Farmer
Bank
Sponsor
Sponsor can act as management and Collection agent
to undertake the following functions:
Identification and screening of borrowers.
Completing application form and other formalities like
getting extracts of land records, no due certificate
etc. of the proposed borrowers.
Recommending the Bank for loan.
Getting security documents executed by the
borrower after sanction from the Bank and forwarding
the same to the Bank.
Paying the amount to the farmer disbursed by the
Bank.
Getting stamped receipt from the borrowers in token
of having received the amount of loan and p0ass on
to the Bank.
After the supply is over, sending to the Bank the
entire proceeds payable to the farmer. In case
amount payable to farmer by the sponsor is less than
93
loan outstanding, to recover the balance amount
from the farmer and remit to the Bank against the
loan out standings.
Submitting the monthly MIS.
Eligibility Criteria:
Cultivable fertile land of 3 acre and above. It has to be
supported by land documents like Patta, chitta,
adangal, 7/12, 8/A extract (confirming ownership, crop
pattern etc) etc.
Rating:
The individual account will not be rated in view of the
structure of the scheme and comfort available from
Sponsor.
Sanctioning and Disbursement of Loan:
Bank and the sponsor based upon the scale of finance
as decided by the DLCC of the lead Bank or a mutually
agreed upon scale will be arrived upon by the Bank and
the sponsor.
The disbursement of loans will be effected to the credit
of current a/c to be opened by the sponsor with our
Bank exclusively for the said purpose. In order to make
the disbursement to the farmers who are located at
different centres, the sponsor will open a current
94
account with any other local bank, again exclusively for
making disbursement of loans to the farmers. The
sponsor will also arrange to obtain a stamped receipt
from the farmer borrowers in token of having received
the amount of loan.
The agriculture extension officers of sponsor will
identify the individual farmers and complete all the
documentation formalities as prescribed by the Bank.
After the satisfaction of our branch personnel about the
completion of documentation formalities, our branch
will issue a consolidated cheque favouring the sponsor’s
dedicated current account with our bank.
Sponsor will arrange to provide us the transactions
details of the loan disbursement account on a monthly
basis certified by a Charted Accountant.
Amount: Depending on scale of finance as decided by the DLCC
of the lead Bank per acre of land; or what is mutually
agreed upon by the Bank and the sponsor, as the case
may be.
Rate of Interest:7.00%-12.00% per year. Payable half yearly depending on case to case basis.
Tenor:
95
Duration of the crop plus two months
Security: Hypothecation of crop. Letter of Guarantee / Comfort letter (in absence of
the letter of guarantee) from the sponsor
Collateral Security: Nil
Insurance: Wherever available the crop should be insured with standard bank clause.
Processing Fees: Nil
Disbursement: The agriculture extension officers of sponsor will
identify the individual farmers and complete all the
documentation formalities as prescribed by the Bank.
Sponsor will forward our branch, the individual
applications for the loan along with the required
documents as detailed in the scheme.
After the satisfaction of our branch personnel about the
completion of documentation formalities, our branch
will issue a consolidated cheque favouring the sponsor’s
dedicated current account with our bank.
96
The sponsor will arrange to obtain a stamped receipt
from the farmer borrower in token of having received
the amount of loan and pass on to the Bank. Sponsor
will arrange to provide us the transactions details of the
loan disbursement account on a monthly basis certified
by a Charted Accountant.
Repayment: After the supply is over, sponsor shall send to the Bank
the entire proceeds payable to the farmer. The bank will
make balance payment to the farmer after deducting
their crop loan dues. In case amount payable to farmer
by the sponsor is less than loan outstanding, sponsor
will recover the balance amount from the farmer and
remit to the Bank against the loan out standings.
Our branch would conduct inspection on a half-yearly
basis or as decided by the Bank to verify the crop. Our
branch would also verify the books of accounts of the
sponsor at half yearly interval to verify the disbursal of
loan as per the scheme. Also, if required an external
auditor would be appointed to audit the accounts.
Other Terms: Sponsor will sign M & C agency agreement with the
Bank.
97
Education Loan:
Axis Bank's Study Power aims to provide financial
support to deserving students for pursuing higher
professional or technical education in India and abroad.
The loan would be provided to students who have
obtained admission to career-oriented courses eg,
medicine, engineering, management etc., either at the
graduate or post-graduate level.
Quantum of loan:The quantum of finance under the scheme is capped at
Rs.10 lacs for studies in India and RS 20 Lacs for studies
abroad, which cover tuition fees, hostel charges (if any),
cost of books, etc. The minimum amount of loan would
be RS 50000.
98
Margin:No margin for loans upto Rs 4 lacs. For loans above Rs 4
lacs, 5% margin for studies within India and 15% for
higher studies overseas.
Rate of interest:Interest rates linked to PLR.
Role of the Guardian:
The parent(s) or guardian of the student would be
treated as a co-applicant of the loan. His or her role
would be, necessarily, like the primary debtor.
Security:Third party guarantee and/or collateral security may be
asked for in appropriate cases.
Additional Security:Assignment of LIC Policy in favour of the Bank for the
sum assured being at least 100% of the loan amount.
The policy is kept alive during the currency of the loan.
To ensure this, the annual premium may be include in
the computation of the loan requirement, along with the
tuition fees and other recurring charges. Further, the
99
future income of the student needs to be assigned in
favour of the Bank for meeting the instalment
obligations.
Disbursement:
The loan will be disbursed in full or in suitable
instalments taking into account the requirement of
funds and/or fee schedule as assessed by the Bank
directly to the educational institution or vendor of books
or equipment or instruments.
Penalty for early closure:
Nil
**********************
Abbreviations and Acronyms (Glossary):
Bank:
RBI : Reserve Bank of India
BIS : Bank of International Settlement
BCBS : Basel committee on Banking Supervisory Practices
NABARD : National Bank of Agriculture and Rural Development
100
DICGC : Deposit Insurance and Credit Guarantee
Corporation
ECGC : Export Credit Guarantee Corporation
Delivery Channels:
SOL : Service Out-let
ATM : Automatic Teller Machine
PIN : Personal Identification Number
POS : Point of Sale
VbV : Verified by Visa (Secured Internet Payment System)
WWW : World Wide Web
SMS : Short Messaging Service
Overseas Investor:
FII : Foreign Institutional Investor
NRI : Non Resident Indians
PIO : Persons of Indian Origin
FDI : Foreign Direct Investor
OCB : Overseas Corporate Body
Fixed Deposit:
STD : Short Term Deposit
MIC : Monthly Income Certificate
QIC : Quarterly Income Certificate
RIC : Re-Investment Certificate
Interest:
LIBOR : London Inter Bank Offered Rate
MIBOR : Mumbai Inter Bank Offered Rate
Payment and Settlement System:
101
IDRBT : Institute for Development and Research in Banking
Technology
INFINET : Indian Financial Network
SFMS : Structured Financial messaging Solution
RTGS : Real Time Gross Settlement (System)
NEFT : National Electronic Fund Transfer (System)
IFSC : Indian Financial System Code
SEFT : Special Electronic Fund Transfer
ECS : Electronic Fund Transfer
SWIFT : Society for World Wide Inter Bank Financial
Telecommunication (Network)
MICR : Magnetic Ink Character Recognition
Regulators:
AMFI : The Association of Mutual Funds in India
IRDA : Insurance Regulatory and Development Authority
SEBI : Security and Exchange Board of India
CBIL : Credit Information bureau (India) Ltd.
Investment:
CRR : Cash Reserve Ratio
SLR : Statutory Liquidity Ratio
ALM : Assets liability Management
ALCO : Assets Liability Committee
REPO : Reverse Purchase Order
GDR : Global Depository Receipt
ADR : American Depository Receipt
General:
BPLR : Benchmark Prime landing Rate
FCNR : Foreign Currency Non Resident
102
NRE : Non Resident External
NRO : Non Resident Ordinary
FEMA : Foreign Exchange Management Act, 1999
FERA : Foreign Exchange Regulation Act, 1973
FEDAI : Foreign Exchange Dealers Association of India
HUF : Hindu Undivided Family
COPRA : Consumer Protection Act.
Ombudsman : To Take Public Complaints against the Public
Authorities
TDS : Tax Deductible at Source
KYC : Know Your Costumer
FATE : Financial Action Task Force
FIU-IND : Financial Intelligence Unit India
CAR : Capital Adequacy Ratio
CRAR : Capital to Risk-Weighted Assets Ratio
GAAP : Generally Accepted Accounting Principles
NPA : Non Performing Assets
SARFAESI : Securitisation and Reconstruction of Financial Assets and
enforcement of Securities Interest (Act)
GRACE : Ground Rules and Codes of Ethics
Appendix
103
www.axisbank.com
Journals
Circulars
Annual Report
*********************
104