EXECUTIVE SUMMARY

It gives me great pleasure to present this project report on Bank Permissible finance at
“Syndicate bank Jalgoan”. The project was carried out from 10.05.2018 to 30.06.2018

Wheels of business cannot move without money. Availability of money is being limited and
wants being unlimited. So procurement of fund is one of the important functions in
commercial & non- commercial enterprises and utilized it for maximization of business
profits.

In this project I have studied banking system for sanctioning of loan process and the
disbursement of loan. The information of all type of loans and advances provided by bank,
what is the position of the bank of previous 3 years of loss of the bank, Gross Non-
Performing Assets (NPA) and Net Non - Performing Assets are also analyzed by way bar
diagram in this project.

The main object of the report is to know about the loan & advances and the procedure
followed by the bank for sanctioning loan. This Bank tries to provide higher quality services
in case of sanctioning the loans and advances. The information of the report has collected
from secondary sources like books, published reports and website of the Syndicate bank
Jalgoan. It include source of existing/published data, such as official website, Banking
journals, Research papers and financial statement. After analyzing data, it was found that
customers have chosen Syndicate bank Jalgoan for its goodwill as state owned bank. But the
loan sanctioning procedure is time consuming. That’s why bank is losing its valuable
customers in loan and advance department. Therefore, Syndicate bank Jalgoan should give
more effort to make well establish market in the context of Jalgaon and be more flexible to
disburse loan & advance.

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 CHAPTER: 1

BANK PROFIL

HISTORY:

Syndicate Bank Head Office: Manipal – 576104

Syndicate Bank was established in 1925 in Udupi, the abode of Lord Krishna in coastal
Karnataka with a capital of Rs.8000/- by three visionaries - Sri Upendra Ananth Pai, a
businessman, Sri Vaman Kudva, an engineer and Dr .T M A Pai, a physician - who shared a
strong commitment to social welfare. Their objective was primarily to extend financial
assistance to the local weavers who were crippled by a crisis in the handloom industry
through mobilising small savings from the community. The bank collected as low as 2 annas
daily at the doorsteps of the depositors through its Agents under its Pigmy Deposit Scheme
started in 1928. This scheme is the Bank's brand equity today and the Bank collects around
Rs. 2 Crore per day under the scheme. Memorable Milestones in a 93-Year Journey

VALUE STATEMENT:

 Good Corporate.
 Governance through transparency in dealings in undertaking ethical
business.
VISION:

“Be a leading financially strong universal bank, creating value for stakeholders
through customer centric, technology driven and employee friendly approach.”

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MISSION:

 Be a highly recognized and visible brand, known for its customer service.
 Be the most preferred place to work where employees feel proud and
motivated.
 Have State-of-the-art technology and infrastructure creating delight among
all stakeholders.
 To deliver strong financial and operational performance.

BANK PROFILE:

Type Public

Traded as BSE: 532276

NSE: SYNDIBANK
Industry Banking , Financial Services

Founded 1925 (94 years ago )

(as canara industrial and Banking Syndicate Limited)

Founders Upendra Ananth Pai

T.M.A. Pai Vaman Kudva
Headquarters Manipal,Udupi,Karnataka

Key people Ajay vipin Nanavati (Chairman)

Mrutyunjay Mahapatra (MD&CEO)
Products Finance and Insurance
Consumer Banking
Corporate Banking

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 Investment Banking
Investment
Management
Private Equity
Mortgages
Credit Cards

Revenue Rs.6,913.09 Crore

( US$960 million)(2017)
Operating income Rs1,514 Crore
(US$210 million)(2017)
Net Income Rs.359crore
(US$50million)(2017)
Total assets Rs.299,073.34 Crore (US$ billions)(2017)

Owner Government of India

Capital ratio 12.03%(2017)

Number of employee 34,989( March 2017)

Website www.syndicatebank.in

Business:

The business started with a capital of 8000 rupees. T.M.A Pai, Upendra Pai and Vaman
Kudva strove together to set up the bank. The first branch of the bank started its operations in
1925 at Udupi in Dakshin Kannada district in Karnataka state. By 1937, it had secured its
membership as a clearing house at Mumbai. The primary objective of the business was to
extend the financial assistance to local weavers. Initially, the bank collected as low as two
annas from the door steps of the depositors daily through its agents. This type of system

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wherein the agents of the bank comes doorsteps to collect deposit is still prevailing
in India and is referred to as the Pigmy Deposit Scheme

Syndicate Bank has branches in the multiple states and union territories in India.

Mergers:

As time progressed, twenty banks merged with the Canara Industrial and Banking Syndicate
Limited including the Maharashtra Apex Bank Limited and Southern India Apex Bank
Limited. The name of the bank was changed to Syndicate Bank Limited in 1964 and the head
office of the bank was shifted to Manipal. The bank expanded its operations not only on the
domestic front but also overseas. It has a branch in London and the bank manages National
Exchange Co. in Doha and Musandam Exchange Co. in Muscat. By 1978, it opened its
1000th branch at Hauz Khas, Delhi. Currently it has over 3500 branches and all branches are
offering core banking-e-banking services under anywhere-anytime-anyhow banking.
Syndicate Bank has one branch in London, United Kingdom.

Regional Rural Banks:

Syndicate Bank sponsored the first regional rural bank in India by name Prathama Bank, in
Moradabad district Uttar Pradesh on 2 October 1975. The stocks of the Syndicate Bank are listed
on Bombay Stock Exchange, National Stock Exchange, Mangalore Stock Exchange and
Bangalore Stock Exchange. Syndicate Bank made a partnership with UNEP to initiate a
successful solar loan programmed. It is a four-year $75855.6 million effort, launched in April
2003 to help accelerate the market for financing solar home systems in southern India. Presently,
the bank is sponsoring 3 RRBs and all are profit making having total business of Rs.42101 Crore
with 1348 branches as on 31.03.2015.

 Prathama Bank
 Karnataka Vikas Grameena Bank
 Andhra Pragathi Grameena Bank

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Branches and Controlling Offices:

Syndicate Bank has Eight Zonal Offices (ZO) for administration and business purpose. The
ZOs are in Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Lucknow, Mumbai, and
Manipal.

The Bank has 60 Regional Offices (RO) that ensure smooth functioning and control business
operations in the various regions of the country. The regional offices are headed by an AGM,
DGM cadre.

Syndicate Bank has a strong presence across India. The bank has 4010 Brick and Mortar
Branches including an overseas Branch in London, 12 Extension counters, and 37 satellite
offices as of July 2017.

International business Canters:

1. For international business, the Bank has a full-fledged Office at Mumbai.

2. Syndicate Bank has overseas Branch at London, United Kingdom.
3. Syndicate Bank is managing M/s. Musandam exchange, Exchange Company in
Oman.
Financial inclusion:

 Bank has opened 103.844 Lakhs Basic Savings Bank Deposit Accounts (BSBDA) as on
31.03.2015. Of which 6.058 Lakhs accounts were opened during the quarter ended as on
31.03.2015. The balance outstanding in these accounts is Rs. 3611.81 crore as on
31.03.2015 (103.793 Lakhs accounts).

 To promote financial literacy in the villages, 14196 financial literacy

Programmers were organized during the year up to 31.03.2015, in which 5.74 Lakhs persons
were benefitted.

 Bank has opened 3496559 number of accounts under PMJDY with a balance

Of Rs. 505 crore as at 31.03.2015.

 3350302 Rupay Cards have been issued under PMJDY as at 31.03.2015.

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Capital planning:

 Government of India infused Rs.460 crore capital (including premium) in March 2015 by
way of preferential allotment of 3, 74, 74,541 equity shares at issue price of Rs.122.75
per share.
 Bank has raised Unsecured Non-Convertible Redeemable Basel III compliant Tier II
bonds (of 10 years) of Rs.1150 crore during FY 2014–15, in two tranches. Rs.750 crore
at coupon rate of 8.95% P.A in December 2014 and Rs.400 crore at coupon rate of 8.75%
P.A during March 2015.

Corporate tie-up:

Bank has entered into strategic tie-ups with the following corporate:

 Bank had signed a Memorandum of Understanding (MOU) with M/s SBI Life Insurance
Co. Ltd. on 30 March 2015 for providing Group Life Insurance cover to Education Loan
Borrowers of the Bank.
 Bank has a Corporate Agency tie-up with M/s TATA-AIA Life Insurance Co Ltd. on 30
March 2015 for providing Group Life Insurance cover to Housing Loan borrowers of the
Bank on optional basis.

 Bank had signed a Memorandum of Understanding (MOU) with LIC for implementation
of "Pradhan Mantri Jeevan Jyoti Bima Yojana". In this, LIC will provide life insurance
cover of Rs.2 Lakhs in case of death of the insured person at nominal premium of Rs.330
per annum.

Corporate Strategies:

 To attract retail investors in the pursuit of tax savings and to take advantage of the
available opportunity, Bank has recently launched a campaign titled "Save Tax – Get
Relaxed" from 1 January – 31 March 2015. This campaign was designed to increase
business of the Bank under Core Term Deposits, Life Insurance Policies from LIC of
India, ELSS option of Mutual Funds and Mediclaim policies of the Bank.
 In order to provide impetus for growth and to increase growth in potential branches, Bank
has selected 55 STAR branches to tap business in line with corporate vision to achieve a

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 level of Rs. 10 Lakhs crore businesses by 31.03.2020. All these branches will be provided
good amenities at branch premises for customers.
 Bank had launched a special SIP campaign titled "SYND Mutual Funds –SIP Campaign"
with all the nine Mutual Fund Companies, covering all the asset classes i.e. Equity, Debt
and Hybrid. The objective of the campaign was to increase the penetration in Mutual
Funds business and build the SIP book along with Asset under Management (AUM) for
the Bank. 3233 SIP Folios were created with a monthly SIP amount of Rs.34.64 Lakhs in
various schemes.

Products and Services:

1) ASBA: Syndicate Bank introduced a new hassle free solution for investment in
Public Issues and Rights Issue called Application Supported by Blocked Amount (Synd
ASBA) as per the SEBI guidelines. Unlike the current system of applying in IPOs using
cheque, where the funds are blocked unproductively as application money till the finalization
of the allotment/bid. Under ASBA the funds will continue to earn interest during the
application processing period as application money remains blocked in account till allotment.
Account will be debited only successful allotment. This facility is also available for rights
issue and new fund offers (NFO) of mutual funds.
2) Deposits:
Operative Deposit Products
 Savings Bank Account
 Current Account
 SyndSamanya Savings Bank Account

Special products in Syndicate–e–banking

 Premium Savings Account
 Multi–City Current Account (3 variants)
 Multi–City SB Account

Term Deposit Products

 Fixed Deposit

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 Synd Tax Shield Deposit
 Vikas Cash Certificate
 Syndicate Suvidha Deposit
 Social Security Deposit
 Senior Citizens Security Deposit
 Recurring Deposit
 Pigmy 1928 Deposit
 Pigmy Plus 2007 Deposit
 Synd Corporate Suvidha Deposit Scheme

3) Loans:
Retail Loan Products:
 Synd Saral
 Synd Senior
 Synd Rent
 Synd Vahan
 Synd Swarna Express
 Synd Pigmy
 Synd Nivas
 Synd Nivas Plus
 Synd Vidya
 Central Scheme to provide Interest Subsidy for the period of moratorium on Educational
Loans taken by students from economically weaker sections from scheduled banks under
the Model Education Loan Scheme of IBA.
 Solar Water Heating Systems

4) Other Services:
Real Time Gross Settlement (RTGS System) – for instant transfer of funds
Real Time Gross Settlement (RTGS) is a technology based initiative for improvement of
Payment & Settlement System linked to the funds management. RTGS is a gross settlement
in which both processing and final settlement of funds transfer instructions take place
continuously i.e. in real time and transfers are settled individually against the present clearing
system. RTGS settles payments on a transaction basis instead of on net settlement basis

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 adopted presently at clearing houses. The funds transfer through RTGS is instant, final and
irrevocable. Electronic Funds Transfer (EFT) System
Electronic Funds Transfer (EFT) System
The Electronic Funds Transfer (EFT) System was introduced by the Reserve Bank of India in
1995 for quick movement of funds between different Banks for the Bank Customers. The
scheme is available for transfer of funds across the Banks. At present Reserve Bank of India
manages the Clearing Houses in 15 centers namely Ahmadabad, Bangalore, Bhubaneswar,
Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Kanpur, Kolkata, Mumbai, Nagpur,
New Delhi, Thiruvananthapuram and Patna.
The EFT system works on the principle of 'NEXT DAY AVAILABILITY OF FUNDS' i.e.
the beneficiary gets the funds credited to his account on the very next day, within 24 hours.
This is a big boon to customer service since under the paper – based cheque payment system,
a customer depositing an outstation cheque for collection receives credit to his account after
1–2 weeks time, depending upon the destination.
It is hoped that the enhancement in the limit of amount of individual transactions under the
EFT Scheme would be beneficial for the banks' customers and will go a long way in
improving customer service in the banks.
Salient Features:
 Fast remittance facility – Credit is afforded within 24 hours.
 Any number of remittances per day is permitted.
 Amount is directly credited to beneficiary account.
 Scope for frauds involving processing of paper instruments is absent.
Built in security:
National Electronic Funds Transfer (NEFT) System
National Electronic Funds Transfer is a nationwide transfer of funds from any bank branch to
any other bank branch. The beneficiary gets the credit on the same day or the next day
depending on the time of settlement. The essential information that the remitting customer
has to furnish is:
 Beneficiary details such as beneficiary name and account number.
 Name and IFSC of the beneficiary bank branch.
 Remitters’ mobile number or e–mail address.
The bank also offers NRI Services, E Banking Services.

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 CHAPTER:2

THEORETICAL BACKGROUND

About Loans and Advances:

Efficient management of loan and advances portfolio has assumed greater

significance as it is the largest assets of the bank having direct impact on its profitability .In
the wake to the continued tightening of norms of income recognition assets, classification and
provisioning, increased completion and emergence of new types of risk in the financial
sector, it has become imperative that the credit functions are strengthened .RBI has also been
functions emphasizing banks to evolve suitable guidelines for effective management and
control of credit risks.

With a view to ensuring a healthy loan portfolio, public sector banks have taken various
steps to bring their policies and procedures in line with changing scenario which also aim at
effective management and dispersal of credit risks strengthening of pre-sanction appraisal
and post-sanction monitoring system. Concurrent steps are being initiated by the banks to
strengthen their organization set-up by opening specialized branches to meet the credit
requirements of specific types of borrowers, imparting intensive credit management training
to staff and development of the trained staff at branches / office having potentials for credit
growth. Banks have laid- down detailed guideline to be followed while considering credit
proposals some for the important ones are listed as under:-
All loans facilities are to be considered by the sanctioning authority after loan
applications from the borrowers and compilation of confidential report o him/ them and the
guarantors. The borrowers should have the desired background, experience / expertise to run
business successfully.
Banks extends loan facilities by way of fund based facilities and non-fund based facilities.

The fund based facilities are usually allowed by way of term loans, cash credit, bills
discounted / purchase etc.
Further, the banks also provide non fund based facilities by way of issuance of inland
and foreign letters of credit, issuance of guarantees bills acceptance facility under IDBI
Rediscounting scheme etc.

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A loan is a type of debt .Like all debt instruments a loan entails the distribution of financial
assets over time, between the lender and the borrower.

Loans:

Definition:

An arrangement in which a lender gives money or property to a borrower and the borrower
agrees to return the property or repay the money. Usually along with interest, at some future
point in time .Usually there is a predetermined time for repaying a loan and generally the
lender has to bear the risk that the borrower may not repay a loan.

Advances:
Definition:

1) An increase in price ; opposite of decline

2) A payment made before it is due.

Significance of loan in Today’s Life:

1) Need of Money:

Everyone needs money at every stage of their life. Sometimes it so happens that
people have keen desire to purchase their favorite stuff but they are incapable to
purchase due to shortage of money.
Here lies a question that a person who does not have a good amount of money at
particular time has no right to see dreams? Is he not authorized to fulfill his desires on
time? Should he stop dreaming? No, because there is solution for these queries. Loans
are available for these purposes only.

2) Useful In Crucial Situations:

Loans are provided to people for such critical circumstances which may occur at any
time. In anyone’s life a situation may come when all of sudden you require cash. A
Moment when you do not want to borrow cash from your relatives. There may occur
any kind of emergency when you need huge amount of money. There are various types
of loans like home loans, personal loans, student loan, Business loan etc. You can take
any type of loan you need. For each and every kind of need, loans are available.

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 3) Limited Financial Sources :
If the financial sources are limited that time loan became an important because if
money is not there people cannot do anything in the society. Need if money explains
the importance of loan.

4) Increase the Standard of Living:

When money comes rapidly the standard of living change automatically .For example
in Pune people have money so their standard of living is also high if something they
don’t have money they took loan from banks and fulfills their needs.

Procedure of Sanctioning of Loan:

The procedure trailed by the credit department is as under:-
 Accept the loan application from the members or shareholders.
 Maintain the Register of receipts of the loan application.
 After receipt of loan application considering for Inspection Report and required
documents for sanction of loan.
 It should be born in mind that the file should be put up in front of Board of Directors
within 7 days from the date of receipt of loan application.

Following registers are necessary to maintain:-

Manual:

 Loan Application Register

 Loan Sanction Register
 Mortgage Deed Register

Computerized:

 Register of loans and Advances sanction to Board of Directors and their relatives.
 Register of Loans and Advances to priority and weaker sector.
 NPA register- Branch wish and loan wish.
 All other registers prescribed by the RBI.
 Periodical Sock an security verification by staff in respect of –
1. Below Rs.10Lakhss -6 Monthly
2. Rs.10 Lakhs to Rs.50 Lakhs – Quarterly
3. Rs.50 Lakhs and above –Monthly

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 DIFFERENT TYPES OF LOANS
FUND BASED LOANS
DEMAND LOAN

Purpose A demand loan account in advance to a fixed amount and no

debits to the amount are made subsequent to the initial advance
except for interest, insurance premium and other sundry charges
.as an amount credited to a demand loan a/c will not be secured
by the demand promissory note taken to cover the original loan.
Criteria for taking Loan A copy of passport/ voter Id card /Pan card. Two passport size
photographs. Proof of residence. Latest Salary Slip.
Loan Disbursement It depends upon the customer requirements. He can take loan in
one time or as per his need.
Repayment Demand loan would be a loan, which is repayable on demand in
one shot that is bullet repayment. Normally, demand loan are
allowed against the Bank’s own deposits ,govt. securities etc.

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 BILLS DISCOUNTING

Purpose Bill discounting is a major activity with some of the smaller Banks.
Under this particular type of lending, bank takes the bill drawn by
borrower on his customer and pay him or her immediately deducting
some amount as discount/ commission. the bank then presents the bill to
the borrowers customer on the due date of the bill & to collect the total
amount. If the bill is delayed, the borrower or to his customer pay the
bank.
Rate of Interest 13.25%

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 CASH CREDIT

Purpose This is the primary method in which banks lend money against the
security of commodities and debt. It runs like a current account
except that the money that can be withdrawn from this account is
not restricted to the amount deposited in the account. Instead the
account holder is permitted to withdraw a certain sum called
“limit”, “credit facility” in excess of the amount deposited in the
account.
Criteria for taking loan  Loan application form
 He should be shareholder of the bank
 Id proof , photo & address
 Factory details , rent basis / owner agreement
 If factory is in MIDC area then agreement with MIDC
 I.e. tripartite agreement & 7/12 abstract in case of other than
MIDC area.
 Product details, registration of firm, permission certificate
from MIDC & other application authority.
 Two guarantors both should have the shareholder in the
bank
 Two photos of guarantors and borrower
 Details of security prime as well as collateral
 Details of loan amount
 Approved plan layout commencement-certificate;
Completion certificate, completion certificate & 7/12
abstract
 Search report from advocate & valuation report
 Valuation report of the prime or collateral security

Rate of interest Less 17.75 %

rebate Net -3.00 %
________
14.75 %

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 PROJECT FINANCEING
Purpose
Appraisal of loan
Rate of interest Less rebate
net
Technical feasibility of the
project
Economic viability
Financial Viability
SSBT’s COET BAMBHORI, JALGAON.
Project financing is the financing of the long- term
infrastructure and industrial projects based on a complex
finance, rather than the balance-sheets of project sponsors.
Usually, a project financing structure involves a number of
equity investors known as sponsors as well as syndicate of
bank that provides loans to the operation.
While appraising proposal for project loan, the following
fundamentals should be carefully studied and analyzed.
18.25 %
-3.00 %
_______
15.25%
The technical feasibility analysis is an attempt to determine
how well technical requirement of project can be met. This
comprises consideration of availability of infrastructure
facilities, raw-material, skilled & semi-skilled works and
other utilities on the technology required for the
manufacturing process on the other hand.
Economic viability has a bearing on thee earning capacity of
the project and earnings are depending upon the sales.
Therefore the borrower’s projections on sale should be
assessed keeping in view the following factors.
 Demand & supply position of the products and its
substitutes.
 Proposed selling price
 Quality of product against quality of competing
products.
The financial viability analysis seeks to determine-
 Whether the cost of project and means of finance as
envisaged in the project report are realistic.
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  Whether project is capable of generating adequate
surpluses for servicing the debt and interest and can
take care of future organizational developments.
 Whether sources of finance are adequate.
 Whether there is a reasonable basis for profitability
operations.

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 NON-FUND BASED LOANS

LETTER OF CREDIT

Purpose The letter of credit can also be the source of

payment of the transaction, meaning that
redeeming the letter of credit will pay an
exporter . Letters of credit are used primarily
o international trade transaction of significant
values for deals between a supplier in one
country and customer in another. The parties
to a letter of credit are usually a beneficiary
who is to receive the money the issuing bank
whom the applicant is a client. In executing a
transaction letters of credit incorporate
functions to common traveler’s cheque.
However the list and form of document is
open to imagination and negotiations and
might contain requirements to present
documents issued by a neutral third party
evidencing the quality of the goods shipped
or their place of origin
Commission 3.00 %

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 BANK GUARANTEE

Purpose A promise made by a bank to provide

payment to another bank or lender on a
bonds, loan o other liability in there event of
default .banks often make guarantees on
behalf of certain clients to promise payment
on loans. Bank guarantees reduce the risk to
loans and liabilities and usually improve the
credit agency ratings of bonds.
Commission 3.00 %

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 BUILDERS AND DEVELOPERS OR CONSTRUCTION LOAN

Purpose Short term loans is a real estate financing

secured by a mortgage on the property being
financed .this loan is meant to cover the cost
of land development and building
construction and is disbursed 1) as needed 2)
as each stage is completed 3) according to a
prearranged schedule .also called building
loan construction mortgage or development
loan.
Criteria of taking loan  Application form and two passport
Size photographs.
 Proof of income
 Salary certificates showings
deductions
 Income tax returns
Rate of interest less rebate Net 19.25 %
-3.00 %
16.25 %

For mortgage of property  Original and prior title deeds.

 Latest tax receipts
 Possession certificate
 Valuation report from the banks
approved valuator.

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 GOLD LOAN

Purpose Gold loan is the secured type of loan

provided by bank in which bank mortgage
gold and provide finance to the customers if
any customer 10 gm gold , bank provides him
Rs. 11.000 /- as loan
Rate if interest 14%

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 EDUCATIONAL LOAN

Purpose To meet the tuition and other fee/

examination fees /library / laboratory fee cost
of books computer / equipment / instruments/
uniform and cost of passage of studies in
abroad . Caution
Deposit, bulldog funds, refundable deposit
subject to 10% of the tuition fees may other
expenses required to compel the course like
study tours, project work, thesis etc. Also be
financed.

Eligible Courses  Graduation course BA.B.COM. B.SC

B.B.A., B.C.A
 Post graduation courses Master and
PhD
 Professional courses like engineering,
medical, agriculture, veterinary, law,
dental.
 Other courses leading to diploma,
degree conducted by colleges /
universities approved by UGC/GOVT
/ AICTE/AIBMS / ICMR.
 Courses offered by National Institute
and other reputed private intuitions.

Rate of interest less rebate Net 16.25%

- 3.00 %
13.25 %

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 TERM LOAN

Purpose Term Loans are the counter parts of Fixed

Deposits in the Bank. Banks lend money in
this mode when the repayment is sought to be
made in fixed pre- determined installments.
This type of loan is normally given to the
borrowers for acquiring loan tar assets I .e
assets which will benefit the borrowers over a
long period (exceeding at least one year)
purchases of plant and machinery ,
constructing building for factor, setting up
new project fall in this category .Financing
for purchase of automobiles , consumer
durables real estate and creation of
infrastructure also fall in this category

Criteria for taking loan  Project report

 Quotation
 Payment details
 Bank a/c details of payment
 Receipt of purchase
 In case of advance paid to supplier
then receipts then receipts of advance
payment and mode of payment.

Rate of interest Less rebate Net 17.75 %

-3.00%
14.75 %

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 HOME LOAN

Purpose Home loan is a secured loan offered against the security of a

house /property which is funded by bank’s loan, a property
could be a personal / commercial property. The home loan is a
loan taken from the bank by borrower against the security of
property/ security intended to be bought on the part of the
borrower given the banker a conditional ownership over the
property if the borrower failed to pay back the loan, the banker
can are retrieve the lent money by selling the property.
Criteria for taking loan  Age proof.
 Address proof.
 Income proof of applicant.
 Last 6 month bank a/c statement.
 Passport size photographs of the applicant.
 Employee certificate from the employer for salaried
person.
 Copies of pay slip for last few month and TDS certificate.
 SI for deduction EMI of housing loan.
Te of interest 12.50%
Up to 1500000/- 13%
Above 1500000/-
Opening of saving a/c  Fill up the form.
Or current a/c  2 latest photographs.
 Id proof.
 Address proof.
 Copies of telephone bill, ration card, pan card, license
etc
 The a/c open with min. balance of Rs.300/- or if you
want an ATM card then min balance 500/- for cheque
book the min. balance Rs 100/-
 After opening of the a/c you will get the passbook
cheque books ,ATM card if you have mentioned all in
application form.

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SSBT’s COET BAMBHORI, JALGAON.
 BANK IS PROVIDING FOLLOWING LOANS AND ADVANES:-

 Deposit Mortgage Loan

 Overdraft
 SML (Staff Multipurpose Loan)
 Working Capital Term Loan
 Gold Mortgage Loan
 Bill Discounting Loan
 Group Term Loan ( to one company employee)
 Staff Cash Credit
 Term Loan

Documentation:-
Advances are not reimbursed by the bank until the documents are duly filled and
properly executed in compliance with the guidelines of the bank. Documentation in a
loan in a loan account is of prime consideration since this document act as physical
evidence in case the bank besides to initiate any legal proceedings for recovery of its
dues in all kinds of loans.

Execution of Documents:-
The documents need to be executed in presence of the manager. In case it is to be
executed by any illiterate person, the contents need to be explained ensuring that the
execution are not under undue influence .In case of joint borrowers , the borrower
must jointly sign the document whereas in case of partners any one behalf of all may
sign.

General Precaution in Necessary Documentation:-

Documents may be typed or printed. Handwritten documents should be completed in
same handwriting. To avoid unnecessary misleading inferences. All documents
should be signed in a full signature and in the same font without overwriting and
signature in initials.

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SSBT’s COET BAMBHORI, JALGAON.
 Renewal of Documents:-
It is mandatory to renew the documents within one year. While reviewing the
documents it should be ensured that all the necessary amendments as per the terms
and conditions of advances are incorporated in the renewal documents.
At the time of renewal the bank should be obtain a fresh set of documents duly
supported by supplementary deeds if required .A format letter from the borrower
agreeing to continues the credit facility by bank in future is obtained .an
acknowledgement of debt security incorporating the Judicial and Non-Judicial.

Stamping of Documents:-
According to Indian Stamp Act 1899 the documents that are properly stamped before
or at the time of execution can only act as basis of the suit.

Non Performing Assets:-

Non-performing Assets or problem loan can be defined as-
“A loan where the lender has some doubts or is experiencing difficulties in obtaining
repayment and, irrespective of the time frame, the outcome could be a loss of capital”.

Impact of NPA:-
 NPAs do not generate income
 They require provisions
 Borrowing cost of resources locked in NPAs
 Enhances administrative, legal and recovery costs
 Reduces profitability substantially
 Affects the morale of the employees and decision making for fresh loan suffer

Consequences of Loan:-

o Direct :-
 It affects profitability of the unit substantially
 Affects Banks credibility and render raising of fresh capital
 From the market difficult
 Recycling of funds gets blocked.

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SSBT’s COET BAMBHORI, JALGAON.
 o Indirect:-
 Reduction in lending rate is made difficult
 Affects the risk taking ability which ultimately affects the competitive of the
branch unit
 Lack of market competitiveness results in slumps in credit expansion. The cost
of poor quality loan shifted to banks customers to higher spreads.

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SSBT’s COET BAMBHORI, JALGAON.
 CHAPTER: 3

OBJECTIVE & SCOPE

Objective:-

 To analyze different types of loan which are offered by the bank

 To analyze the procedure of loan sanctioning.
 To understand about the interest and duration in various schemes of advances
provided by the bank.
 To conclude on the overall position of bank regarding loan and advances

Scope:-

The study of loans and advances will help bank to identify various factors which are directly
and indirectly affecting on its performance and revenue.

 To identifying such operating factors and to tackle those effectively and reduce the
risk in operating.
 It will help bank to increase its performance and revenue.
 It will help bank to take its decision very effectively.
 It will help bank to improve its lending policy.

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SSBT’s COET BAMBHORI, JALGAON.
 CHAPTER:4

Limitations of the project

 Bank did not show the files of proposals so we don’t have full practical knowledge
about loan and advances.
 Bank institutes also did not fully disclose the strategy of their approval of loans and
advances
 This project has limitation as it covers confidentiality of the bank with its
customers. (Borrowers of loan and advances)
 The time period of the study is very limited.

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SSBT’s COET BAMBHORI, JALGAON.
 CHAPTER: 5

RESEARCH METHODOLOGY

Sources of Data

“The search of knowledge through objective and systematic method of finding solution to a
problem research”. Research is common parlance refers to a search for knowledge. One can
also define research as a scientific & search for pertinent information on a specific topic. In
fact, research is an art of scientific investigation. The Advanced Learner Dictionary of
Current English lays down the meaning of research as, a careful investigation or inquiry
especially through search for new facts in any branch of knowledge. Redman & More define
research as, a systematized effort to gain new knowledge. Some people consider research as a
movement, a movement from the known to the unknown. It is actually a flight of discovery.

Research is an academic activity & as such the term should be used in a technical sense.
Research is an original contribution to the existing stock of knowledge making for its
advancement. It is the pursuits of truth with the help of study, observation, comparison
&experiment. In short, the search for knowledge through objective & systematic method of
finding solutions to a problem is research. As such, the term research refers to the systematic
method consisting of diction the problem, formulation a hypothesis, collecting the facts or
data, analyzing the facts & reaching certain conclusions either in the form of solutions
towards the concerned problem or in certain generalization for some theoretical formulation.

DATA SOURCES:

The collection is done by Secondary data.

 Secondary data collection:

Profit and loss account and other notes provided in annual report for 3 years.
 Research type:
i. It is case study analysis with reference to Syndicate bank , Jalgoan
ii. It is based on secondary data of the bank that includes financial statements
for 3 years.
 Research Tools and Technique
The case of Syndicate bank, Jalgoan is analyzed with the help of popular balance
statement.

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SSBT’s COET BAMBHORI, JALGAON.
 CHAPTER: 6

DATA ANALYSIS & INTERPRITION

Deposits and advances

Years Deposits (in lakh) Advances (in lakh)

2015-16 1718.19 1494.20
2016-17 2961 1837
2017-18 2849 2418

Deposits and Advances

3500
3000
2500
Rs.in Lakh

2000
1500 Deposits (in lakh)
1000 Advances (in lakh)

500
0
2015-16 2016-17 2017-18
Year

Interpretation: As deposits concern, there is an increasing trend in the growth of deposits.

The amount deposit in the year of 2015-16 was Rs.1718.19 (lakh). Future its increased to Rs
2961( lakh) in the year of 2016-17 and the year of 2017-18 it went on Rs 2849 (lakh)its show
that again decrease the deposits in bank.

Advances concern in the year 2015-16 it was Rs 1494.20 (lakh) further it increased to
Rs1837(lakh) in year 2016-17 and in the year 2017-18 is Rs 2418 (lakh) bank have
increasing ratio of the advances..

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SSBT’s COET BAMBHORI, JALGAON.
 Net Loss of the Bank

Years Loss
2015-16 5299369
2016-17 3771758
2017-18 397176

Net Loss

6000000

5000000

4000000
Net Loss

3000000

2000000

1000000

0
2015-16 2016-17 2017-18
Year

Interpretation:

The graph shows that the losses of bank, it was Rs. 5299369/- in the year 2015-16 further it
was continuously decreasing in year 2016 – 17 to Rs 3771758/- in the year 2017-18 it was
Rs. 397176/- .

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SSBT’s COET BAMBHORI, JALGAON.
 Non- Performing Assets (NPA)

(In lakh)

Years NPA Level

2015-16 258.92
2016-17 301
2017-18 817

NPA Level

900
800
700
600
NPA level

500
400
300
200
100
0
2015-16 2016-17 2017-18
Year

Interpretation:

The graph shows that the Net NPA of the bank is frequently change. It was 258.92 in the year
2015-16 further it was increasing 2016-17 and in the year 2017-18 it was 817. It shows the
growth in Net NPA.

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SSBT’s COET BAMBHORI, JALGAON.
 CASE STUDIES

Case no -1

Fact of Case : Vehicle Loan

Applicant Name Mrs. Sunita Shirish Jawale

DOB 10/03/1981
Address C/O Heera Rotopol,Ymers,Plot V 21,Add,L
MIDC ,Ajintha Road, Jalgoan
Membership No. 56752843

Job Business
Income Rs 3250000

Loan Demand Description:

No. Loan Type

1 Vehicle Loan

Type Of Vehicle Four Wheeler

Vehicle Name Maruti Suzuki Swift Dzire

Amount Rs 902909

Diller Name Manraj Motors Pvt Ltd

Guarantor Guarantor No.1
Name Mr. Satish Somnath Joshi
Address Bl No4 Pl No 21 Gat No199/1/3,Near
Kolhe Hills,Shivba Nagar
Whether Existing Customer Or New Existing Customer
Customer

EMI: - Rs 12981.80/M, Total 83 month.

Guarantees: - Irrevocable joint and several guarantees of Mr.Satish Somnath Joshi.

Security: - Primary security of car Maruti Suzuki Swift Dzire.

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SSBT’s COET BAMBHORI, JALGAON.
Membership: - Guarantor Mr.Satish Somnath Joshi is existing customer of bank.

Interest: - @9.4% payable monthly on last day of every month for the
respective periods ending on these dates.

Repayment: - The loan shall be payable in 83 EMI (Total period of 3 years)

Insurance: - Securities fully insured against fire, strike, riot and all other risks including
natural climate.

Details:

Mrs. Sunita Shirish Jawale have saving account in Syndicate bank Jalgoan and she is new
member in Syndicate bank Jalgoan. She was an self employed and applied for car loan in
syndicate bank.

Bank Manager Recommendation:

The applicant is new customer having good income. The proposal is techno economically
viable. We may sanction vehicle loan to purchase swift Dzire under Synd vahan product of
bank. The loan is fully secured by primary security. We will earn interest and non interest
income from the proposal.

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SSBT’s COET BAMBHORI, JALGAON.
Case no 2:-

1) Fact of case: Home loan

Applicant Name Mr.Subhash Madhukar Patil

Address Parijat Apartment,Gate No 53 Plot
No54,Shiv Coloney , Jalgoan
DOB 22/08/1978
Membership No. 56610598
Occupation Self –Employed
Income Rs 1901780.0
Mobile No 9049544052

Loan Demand Description

No. Loan Type Amount

1 Home Loan 1315000
Guarantor Guarantor No.1 Guarantor No.2
Name Mr.Ratilal Vana Patil Mrs.Rekha Vana Patil
Address Plot No 48 Gat No54,Shiv Plot No48 Gat No54 ,Shiv
Colony, Jalgoan Colony, Jalgoan
Membership No. Nominal Nominal

EMI: - Rs 8789.24/m

Guarantees: -Irrevocable joint and several guarantees of Mr.Ratilal Vana Patil & Mrs. Rekha
Vana Patil.

Membership: - Applicant and both guarantor are regular member of the Bank.

Margin: - A minimum margin 23.95 value of assets considers as per the cost of project

Interest: - @8.65 payable monthly on last day of every month for the respective periods
ending on these dates.

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SSBT’s COET BAMBHORI, JALGAON.
Repayment: - The loan shall be payable in 239 EMI.

Insurance: - Securities fully insured against fire, strike, riot and all other risks including
natural climate.

Details:

Mr. Subhash Madhukar Patil has saving account in Syndicate bank Jalgoan and he is
Permanent member in Syndicate bank.

Technical Appraisal:

Mr. Subhash Madhukar Patil submitted title search report of flat to it is satisfactory.
According to him assets in proper for mortgaged land.

Bank Manager Recommendation:

The applicant having good income to repay the loan. We may sanction loan under synd nivas
for 10 lakh. The proposal is techno economically viable. We will earn interest and non
interest income from the proposal

38 | P a g e
SSBT’s COET BAMBHORI, JALGAON.
Case no 3

1) Fact of Case: Personal Loan

Applicant Name Mr.Dharmendra Laxman Dhurandrha

Address Plot No 101, Madhav Parvati Apartment,
Gandharv Colony, Near Ganesh Colony,
Jalgaon
DOB 02/08/1976
Membership No. 51642737
Occupation Self –Employed
Income Rs 1613780.0
Mobile No 9272323510

Loan Demand Description

No. Loan Type Amount

1 Personal Loan 200000
Guarantor Guarantor No.1 Guarantor No.2
Name Jyoti Dharmendra ---------
Dhurandrha
Address Plot No 101, Madhav ---------
Parvati Apartment,
Gandharv Colony, Near
Ganesh Colony, Jalgaon
Membership No. Nominal ---------

EMI: - Rs 4661.55/m

Guarantees: -Irrevocable joint and several guarantees of Jyoti Dharmendra Dhurandrha.

Membership: - Applicant and guarantor are regular member of the Bank.

Interest: - @13.3% payable monthly on last day of every month for the respective periods
ending on these dates.

39 | P a g e
SSBT’s COET BAMBHORI, JALGAON.
Repayment: - The loan shall be payable in 59 EMI.

Insurance: - Securities fully insured against fire, strike, riot and all other risks including
natural climate.

Details:

Mr.Dharmendra Laxman Dhurandrha has saving account in Syndicate Bank Jalgoan and he is
permanent member in Syndicate Bank.

Bank Manager Recommendation:

The applicant is our existing customer in joining HL faculty of Rs. 20.0 lack against the
mortgage of flat having market value of Rs.35 lakh. The dealing of customer is satisfactory
the income of applicant for business is good and having good loan repaying capacity. We
amy sanction personal loan of Rs. 2 lakh under synd saral product. We will earn good interest
and non interest income for proposal.

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SSBT’s COET BAMBHORI, JALGAON.
Case no 4

1) Fact Of Case: Education Loan

Applicant Name Miss Pooja Santosh Mali

Address Patil Wada Villege Nashirabad, Jalgaon
DOB 29/06/2001
Membership No. ------------
Occupation Student
Income ----------
Mobile No 9370263035

Loan Demand Description

No. Loan Type Amount

1 Education Loan 218108
Guarantor Guarantor No.1 Guarantor No.2
Name Santosh Baburao Mali ---------
Address Patil Wada Villege ---------
Nashirabad, Jalgaon
Membership No. -------------- ---------

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SSBT’s COET BAMBHORI, JALGAON.
 Year Wise Expenses Shown In the Application

Year Purpose Grand Less Amount

Total Scholarship Of
(INR) /Margin Eligible
Loan
Tui Cost Education Exam Boarding Other
tion Of Tour Fees Lodging Exp.
Fee Books
Etc.
1 313 15000 6273 1110 0 1530 55277 0 55277
64
2 313 15000 6273 1110 0 530 54277 0 54277
64
3 313 15000 6273 1110 0 530 54277 0 54277
64
4 313 15000 6273 1110 0 530 54277 0 54277
64
Tota 125 60000 25092 4440 0 3120 21810 0 218108
l 456 8

EMI: - ---------

Guarantees: -Irrevocable joint and several guarantees of Santosh Baburao Mali

Membership: - Applicant and guarantor is regular member of the Bank.

Interest: - @9.75% payable monthly on last day of every month for the respective periods
ending on these dates.

Repayment: - The loan shall be payable in 144 EMI.

Margin: - A minimum margin 0%.

Details:

42 | P a g e
SSBT’s COET BAMBHORI, JALGAON.
Miss. Pooja Santosh Mali has saving account in Syndicate bank Jalgoan and he is Permanent
member in Syndicate bank.

Bank Manager Recommendation:

We may sanction the following credit facilities for student of

Applicant Miss Paooja Santosh Mali

Nature Of Faculty DL SYNDVIDYA DOMESTIC MCLR
Amount Rs. 218108
Purpose Education Loan Under Synd Vidya Scheme To Complete B.E
Coerce
Rate Of Interest 9.75%
Margin 0%
Security Property Particular : Nil NA
Repayment Holiday 60 Month
Repayment 144 Month
Processing Charge Rs 0

43 | P a g e
SSBT’s COET BAMBHORI, JALGAON.
 Chapter 7

FINDINGS

 The Syndicate bank, Jalgaon is one of the most trustable banks in co-operative
sector in Jalgaon.
 The process for sanctioning of loan is very time consuming and lengthy.
 The bank has losses due to some reasons.
 The increasing ratio of advances due to the banks popularity and healthy situation.
 The bank operations fluctuating year by year.
 Customer can get benefit for taking loans at a time if they are capable to repay.
 Most of customers have selected the syndicate bank for availabiling loan because of
simple procedure of the loan.
 A response from customer is clear and good.
 Approximately 75% of advance product users said that the services of Syndicate Bank
advances product is excellent.
 NPA of the bank is frequently changed. It was 258.92 in the year 2015-16 further it
was increasing 2016-17 and in the year 2017-18 it was 817. It shows the growth in
NPA.
 Losses of bank, it was Rs. 5299369/- in the year 2015-16 further it was continuously
decreasing in year 2016 – 17 to Rs 3771758/- in the year 2017-18 it was Rs. 397176/-
.
 As deposits concern, there is an increasing trend in the growth of deposits. The
amount deposit in the year of 2015-16 was Rs.1718.19 (lakh). Future its increased to
Rs 2961( lakh) in the year of 2016-17 and the year of 2017-18 it went on Rs 2849
(lakh)its show that again decrease the deposits in bank.
Advances concern in the year 2015-16 it was Rs 1494.20 (lakh) further it increased to
Rs1837(lakh) in year 2016-17 and in the year 2017-18 is Rs 2418 (lakh) bank have
increasing ratio of the advances..

44 | P a g e
SSBT’s COET BAMBHORI, JALGAON.
 CHAPTER 8

Suggestion

 In the present scenario of competitive banking, excellent in customer service is the most
important tool for sustained business growth.
 The bank should maintain balance between loans and NPA to maintain the growth of the
bank.
 Banks also get the interest on the loans so accordingly they can also earn profits and plan
the future investments
 A lot of documentation and formalities are to be completed for raising the loan, which
requires a lot of time so the procedure of raising the loan should be simplified to some
extent.
 Banks can adopt few qualitative techniques to educate the borrower about its lending
policies.
 Bank should give preference to all customers not only to communist.
 Bank is also advised to have proper internal control measures for monitoring its function
and transactions.
 Customer satisfaction must be the top priority of the bank.
 Attractive and competitive interest rate should be adopted sins it is the main factor
consider for taking loan by customer
 A service level provided by bank should be more efficient and effective for the customer.
The customer is very keens on the service provided by bank.
 A suggestion is made to the bank to expand the business globally and offer more and
more services to the people.
 Bank should use latest technology in banking activates.
 Few customers has not selected the branch because of less branches.

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SSBT’s COET BAMBHORI, JALGAON.
 CHAPTER 9

Conclusion

 The Syndicate bank, Jalgaon is working according to the rules and regulatory,
guideline of RBI, the bank follows all the banking terms relating to loan advances.
The credit police of the bank is prepared according to the section 21 of the Banking
Regulation Act 1949and RBI directions.
 As we observed the trade in Indian financial sector is changing rapidly through
innovation and dependability of loan and advances has also increased and much
awareness of this concept has been found.
 To get the true benefit and good return on securities investments, it is necessary that
the bank should follow a proactive and scientific approach.
 The bank serves the different people for the different purposes. The bank offers
different kinds of loans and advances with the satisfactory rate of interest.
 The banks are obligatory to ensure compliances with the legal, industry, and
regulatory, contractual requirement e.g. license requirement, RBI guidelines,
insurance requirements. ISO standards etc.
 The performances of the bank highlights that it had achieve the fixed target from time
to time and continuously retained good position in financial strength.

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SSBT’s COET BAMBHORI, JALGAON.
 CHAPTER 8

BIBLIOGRAPHY

 Annual report of the bank 2015-16

 Annual report of the bank 2016-17

 Annual report of the bank 2017-18

 Web site- www.banknetindia.com

 www.syndicatebank.in

 Introduction to banking –Ayer

 Financial management- Ravi M. Kishore

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SSBT’s COET BAMBHORI, JALGAON.
 Annexure

Balance-sheet Syndicate Bank, Jalgaon

As on year 2015 To 2018

Liabilities 2015 2016 2017 2018

Share Capital - - - -

Provision 56,13,506.00 88,29,903.00 1,41,69,448.00 1,95,49,430.00

Deposit 196,645,691.08 171,819,149 296,095,768 284,856,069

Branch Adjustment 24,702,599.03 14,889,608.07 107,592,606.79 49,337,060.45

Payable Interest 19,55,846.00 38,37,584.00 49,02,138.00 52,96,552.00

Other Liabilities 1,004,682.71 1,386,629.05 1,498,485.17 1,449,946.93

Total Liabilities 47,03,89,534.00 64,48,92,165.09 58,11,69,639.73 44,21,03,809.00

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SSBT’s COET BAMBHORI, JALGAON.
Assets 2015 2016 2017 2018

Cash In Hand 1,253,506.04 1,473,422.84 2,060,813.97 1,999,327.99

Current A/C 359,362 .19 702,337.85 1,029,139.07 429,719.81

Urban A/C 9,85,296.77 93,57,995.69 24,08,18,992.33 7,72,99,716.21

Bank Saving A/C 13,06,71,252.82 11,02,49,598.66 98.27.334 -

Investment A/C 3,41,17,611 95,17,611 - 51,24,729

Other Investment 500 500 500 500

Loan & Advance
A/C 24,86,05,159 30,93,12,594.83 32,16,80,069.67 33,92,64,499.67
Branch
Adjustment 24,702,599.03 14,889,608.07 1107,592,606.79 49,337,060.45

Receivable Interest 0.00 0.00 0.00 0.00

Other Receivable 8,69,899.28 243,521.50 1,04,890.50 33,420.75

Other - 3,34,323.00 3,34,323.00 3,32,223.00

Total Assets 196,645,691.08 222,785,255.35 354,567,489.15 359,487,959.26

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