Professional Documents
Culture Documents
Wa0001
Wa0001
ON
PROJECT GUIDE
TANISHA
ROHTAK CITY
DECLARATION
I NAVEEN, Roll No 126, Class MBA 2ND Sem. of the I.M.S.A.R, (ROHTAK)
LOAN PROVIDED BY DIFFERENT BANKS” is an original work and the same has
not been submitted to any other institute for the award of any other degree. The
project report was presented to the Supervisor on TANISHA and the pre-submission
presentation was made on MS. NIKITA .The feasible suggestions have been duly
Countersigned
ACKNOWLEDGEMENT
It gives me immense pleasure to present this report a written testimony of a very
rewarding practical experience .I have undergone .I must utilize this opportunity to
express my gratitude to all those who helped me in making this project work a success.
(NAVEEN )
OBJECTIVE OF STUDY
OBJECTIVE OF STUDY
1 To know the industrial development financial schemes provided by SBI and I.C.I.C.I
4 To make suggestions with regard to modify and develop the type of schemes provided
by state bank of India and I.C.I.C.I
INTORDUCTION TO COMMERCIAL LOAN
There are many financial institutes which are providing many loans and provides
many financial schemes in which commercial loans play very important role. Financial
schemes development involves raising the socio economic status o the population on
sustainable bails through optimum utilization of resources, both human and society.
The essence of financial schemes like commercial loan is to make life easy people have
many dreams regarding there comfort, but for that sometime they don’t have enough
money. Then these banks help them to come out from the problem.
Commercial loans are of two types, they are given for either manufacturing purpose
or trading purpose but both types of loan is income generated it is also called business
loan. It is given for the setup of the industry and for the growth and development of the
country. Human needs can be fulfilled by these types of loan. This concept is very
comprehensive and multidimensional in nature.
Loan advanced to a business instead of to a consumer. Commercial loans are usually for
a short-term (from 30 days to one year), secured (backed by a collateral) or unsecured,
and are often advanced for financing equipment, machinery, or inventory. Banks usually
require the commercial borrowers to submit monthly and annual financial statements, and
to maintain insurance cover on the financed item.
OBJECTIVES OF COMMERCIAL LOAN
1. INDIVIDUAL APPROACH
though many development programmed were initiated during per independence period
but in 1980s development of many industries was come into existence for that many
people was taken money from various banks the individual approach behind this that one
individual took initiative this approach was helped in creating infrastructure for business
development.
2. COMPREHENSIVE APPROACH
this is the approach which is known for the community development this is the major
milestone towards commercial loans. it was quite board and comprehensive in nature it
covered all the facts providing employment training social welfare education etc.
3. INSTITUTIONAL APPROACH
Commercial loans come inexistence with the objective to generate income it follow
institutional approach because it wants adequate participation of people
4. INTENSIVE APPROACH
Approach was intensive because all the loans follow the aspects of improvement
essential for rapid increase in commercialization or business growth
In this type of approach banks target those people who really interested to generate
income and who have prospects to earn profit it ensure the benefits of development reach
directly to the people work in there firm
6. AREA DEVELOPMENT APPROACH
one of the most popular objective is area development by giving this type of
commercial loan it is insured that there should be development of area where firm or
manufacturing or trading are being done
HISTORICAL BACK GROUND OF BANKS
PROVIDING COMMERCIAL LOANS
In the eighties it may be recalled that there was industrial revolution people will come
forward to setup organization they took initiative to setup firms many entrepreneurs come
forward and took initiative for them these type of banks were very helpful and they help
them by providing commercial loans.
With minimum interest charges and to give them benefits of establishing any firm
.lots of people were and also in present scenario are taking benefits of commercial loans.
The reserve bank of India who come into existence in 1935 acquired a supervisory and
development role in department of banking operations and development. the banking
sector witnessed the process consolidation for the first time the number of banking
companies achieved success drastically now days.
there was drastically change in mid nineties before establishing rural banking
commercial banking and cooperative banking was there the objective behind setting up
this type of banks providing commercial loans was to generate income and to help in the
growth of countries economy.
Scope of the study:-
Following are the scope of India
The banking sector in India has overgrown diversified and overstretched like
many of the sprawling big cities in India it has tried to accommodate all
types of banking activities especially after the industrial revolution. major
slice banking was acquired by the state in its attempts to cover the
commanding heights of the economy.
It is the public sector bank if we talk about state bank of India who is the
largest bank known for providing loans in various areas commercial loans
are one of them besides this many private banking are also come into
existence to provide many loans here we will discuss commercial loans
only .
ROLE OF BANKING PROVIDING COMMERCIAL
LOANS
The banking sector in India has overgrown diversified and overstretched like many of
the sprawling big cities in India it has tried to accommodate all types of banking activities
especially after the industrial revolution. major slice banking was acquired by the state in
its attempts to cover the commanding heights of the economy.
It is the public sector bank if we talk about state bank of India who is the largest bank
known for providing loans in various areas commercial loans are one of them besides this
many private banking are also come into existence to provide many loans here we will
discuss commercial loans only .
Limitation of study
1. The study has been done only over a short period of time and only one cities of
Haryana was dealt in survey so it does not represent the view of whole Indian
Organization
2. The research is based on collected data and the researcher is not responsible for any
wrong inference drawn due to the incorrect filling of the questionnaire by the
respondents.
3. It is very small research, which may be insufficient to give the real picture, only 100
due to shortage of time & sources so it doesn’t present whole area.
5. The survey was based on questionnaire and questionnaire was based on perception. So
Responses of the respondents can be influenced by personal biasness
THE CURRENT STATUS OF COMMERCIAL
LOANS
The banking sector in India’s has become an agglomerate of banks big and small
public and private old and new viable and non viable. There are remarkable diversities in
there sizes of organizational pattern geographical presence and functional specialization
.till recently there was classification of scheduled banks based on capital base.
There are regional banks also there who help people to take loans. They are operating
exclusively in the various area including rural area opposite to them there are many new
banks also functioning only in the urban and metropolitan centers
In terms of size on one extreme there is also private sector banks there is omnipresent
banks also like state bank of India with over 9000 bravely on the other extreme I.C.I.C.I
is the private sector bank providing commercial loans
SBICI Bank is a wholly owned subsidiary of India's premier banking and financial
services group, State Bank of India, and functions as. a Private Sector Bank with high
quality standards. Our Bank has been awarded ISO-9002 quality systems certification for
the Bank as a whole, covering all its products and services at all locations - a unique
distinction for any Indian bank.
Being small in size, we are a lean and flat organization able to respond to all your needs
quickly and efficiently. At the same time, being part of India's largest Banking group, we
enjoy tremendous reach both nationally and internationally and bring to you the
professionalism, expertise, experience, ethical standards and best practices of our Group
(honed over almost the last 200 years) along with the warm feeling of security and safety
that only a leader like SBI Group (with 13,000 branches in India and 52 offices in 34
countries all around the Globe) can provide.
The origin of S.B.I dates to 1806 when the bank of Calcutta later called bank of Bengal
was established in 1921, the bank of Bengal and other banks were amalgamated to form
the empirical bank of India.
The state bank of India is the largest commercial bank in India in terms of profits,
assets, deposits, branches and employees.
About 46% of the banks branches are located in rural areas 27% in semi urban areas,
and 6% and 11% are located in urban and metropolitan are as respectively.
The bank has pioneered innovative measures and contributed significantly to the
growth of Indian economy.
Corporate Set Up
Composition of Board of Directors
Important declarations :
Account Practices :
a. The Bank would provide regular statement of accounts, unless not found
necessary by the customers.
b. The Bank would notify relevant due dates for application of agreed interest, penal
interest, default interest, and 'charges' if they are not mentioned in the Loan
applications, documents or correspondance.
c. The Bank would notify, before implementation, any change in accounting
practices which would affect the customer.
Information Secrecy :
a. All personal information of the customer would be confidential and would not be
disclosed to any third party unless agreed to by the customer. The term 'Third
party' excludes all Law enforcement agencies, Credit Information Bureau,
Reserve Bank of India, other banks / financial and lending institutions.
b. Subject to above para, customer information would be revealed only under the
following circumstances :
Financial Distress :
a. The Bank would sympathetically reckon cases of customer's financial distress.
b. Customers would be encouraged to inform about their financial distress as soon as
possible.
c. The Bank would adequately train the operational staff to give patient hearing to
the Customers in financial distress and would try to render such help as may be
possible in their view.
Grievances Redressal :
a. The Bank would have a Grievance Redressal Cell / Department / Centre within or
outside the organisation.
b. The Bank would make available all details, namely :
> Where a complaint can be made
> How a complaint should be made
> When to expect a reply
> Whom to approach for redressal of grievances etc.,
to the customers individually on demand and through the media listed in Para
3.2.1.
c. Response to a complaint, whether positive or negative or requiring more time for
redressal, would generally be given within a maximum period of four weeks from
the date of receipt of complaint, unless the nature of complaint is such that
requires verification of voluminous facts and figures.
Structure of Grievance Redressal Mechanism
FAIR PRACTICES
Product Information :
ICICI Bank Limited provides banking products and financial services to corporate and
retail customers primarily in India. It offers a range of products and services in the areas
of commercial banking, investment banking, and insurance.
The company’s deposit products include time deposits, savings accounts, current
accounts, payroll accounts, and accounts for small businesses, nonresident Indian
accounts, and certificates of deposit.
The company’s loan portfolio comprises home loans, automobile loans, two wheeler
loans, commercial vehicle loans, construction equipment and farm equipment loans,
personal loans, credit cards, loans against time deposits, loans against shares, leasing and
related loans, consumer loans, project and corporate finance, and venture capital finance.
It also offers private banking, debit cards, and agricultural financing products, as well as
distributes third party investment products and issues unsecured redeemable bonds.
Further, the company has interests in the software development, software services,
insurance, and business process outsourcing businesses.
ICICI Bank operates a network of approximately 573 branches and 2,000 automated
teller machines. It also has operations in the United States, the United Kingdom, Canada,
Russia, Singapore, Bahrain, the Peoples’ Republic of China, the United Arab Emirates,
South Africa, Sri Lanka, and Bangladesh. ICICI Bank was founded in 1955 and is
headquartered in Mumbai, India
BENEFITS OF I.C.I.C.I
1 No mortgage no security
2 faster sanction.
3 lesser documentation.
PROBLEMS FACED BY
BANKS
PROBLEMS FACED BY BANKS
1 the Indian socio economic scene is still feudal in nature largely still in the midst of
illiteracy besides this the Indian psyche is deeply entwined with the cultural ethos.
3 Banks may not find operations economical as sometimes the transaction and follow up
costs are more than the amount of credit.
4 the procedures involved in availing bank finance sometimes delay the actual receipt of
the funds the money if receipt of the funds the money if received late may be of no use to
the borrower the next time finance is required he will approach a source that guarantee
timely delivery of money usually local moneylenders.
RESEARCH METHODOLOGY
2. RESEARCH DESIGN
The research design is a master plan specifying the methods and procedures for
collecting and analyzing the needed information the research design of my dissertation is
DESCRIPTIVE RESEARCH
Descriptive research includes surveys and facts findings inquiries of different kinds.
1) Primary data
2) Secondary data
1. Graphs
2. Charts
3. tables
5. RESEARCH INSTRUMENTS
QUESTIONNAIRE
6. SAMPLE DESIGN
o target population people of industries
o sample size 100 people
o sampling technique convenience and judgmental sampling area Rohtak city
In terms of size on one extreme there is also private sector banks there is omnipresent
banks also like state bank of India with over 9000 bravely on the other extreme I.C.I.C.I
is the private sector bank providing commercial loans
The Indian banking sector therefore as a storage combination of traditional and
modern procedure policies and personnel.
Industrial development can be possible if only there is proper balance between service
oriented programmed and development oriented programmed and self centered
programmed . The importance attached to service oriented schemes besides this , has also
resulted in the wastage of precious resources.
Bank 60%
Personal 25%
Private 15%
Interpretation: - mostly preference towards bank loan is there
businessman 45%
traders 32%
contracer 18%
Any other 15%
Yes 60%
No 40%
Interpretation: - persons who in business, already they have taken loan
ICICI 25%
PNB 18%
SBI 38%
HDFC 16%
Other 3%
Interpretation: - mostly preference is there towards SBI bank because
of large no of branches and nationalized banks but today’s customers
are considering other private options.
Reliability 35%
No 30%
Interpretation: - most of are satisfied with policy and scheme which are
offered by banks.
Moderate 25%
Low 15%
ICICI 32%
PNB 18%
SBI 30%
HDFC 17%
Other 3%
Interpretation: - mostly person prefer the ICICI bank SBI bank because
of their services.
Q.12 Are you getting tax benefit?
Yes 85%
No 15%
Both 35%
Yes 80%
No 20%
* Bank should also try to make procedures more simplified for people
* The should try to see from time to time that application submitted to banks under
commercial loan are dealt promptly
* To make procedure transparent enough so as to avoid any fraud and obtaining people
confidence
After going through my whole study I came to the conclusion that different
banks of India either private or public both provides loan. With the objective to
generate income. They have many financial schemes regarding commercial load.
There are many people who are satisfies with the scheme. The procedure of getting
loan from these banks are simple and easy and also costumer friendly. I also come to
know that many industrialist, traders, and new entrepreneur were aware of these
schemes.
BIBLIOGRAPHY
Books
Websites
o www.sbi.com
o www.icici.com
o www.hdfc.com
o www.google.com
o www.yahoo.com
Questionnaire
Dear respondent,
I am conducting the survey on “A Dissertation on commercial loans
provide by different banks” which is a part of M.B.A. Program. All the
information provided by you will be kept secret & will be used exclusively
for academic purpose.
Name ________________________
Address ______________________
Sex: Male Female
Income: _____________________
Q.3 Have you taken any commercial loan or plan for it in future?
(a) Yes (b) No
Q.4 If yes then which bank you will prefer?
(a) ICICI (b) PNB
(c) SBI (d) HDFC
(e) Other