Group 7 - Neelabh Barua - PGFB2027

Banking Operations and Credit Analysis
(FIN501)
Group Assignment
On
Functioning of Punjab and Sind Bank
PGDM
(Term-V; Batch 2020-22)
Under the Supervision of

Prof. A K Puri
Submitted by
Manisha Sharma PGFA2027
Muskan Raghuwansi PGFA2031
Navnit Kumar PGFA2062
Neelabh Barua PGFB2027
Rahul Kakkar PGFB2036
Yatharth Sharma PGFB2058
JAIPURIA INSTITUTE OF MANAGEMENT

A-32 A, Sector 62, Institutional Area, Noida- 201309 (U.P.)
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Table of Contents
SL No. Particulars Page No.
1 Introduction to Banking Sector 3
2 Introduction to Punjab and Sind Bank 7
3 Overall Bank Functioning 8
4 Deposit Products and Data 11
5 Retail Loans Product and Data 19
6 Commercial Loans Product and Data 22
7 Fee Based Services 33
8 Third Party Products 36
9 Transfer and Settlement Services 41
10 Long Term View on Bank 47
11 Conclusion 48
12 References 49
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Introduction of Bank
What is a Bank?
A bank is a financial institution that is permitted to accept deposits and make loans. Banks can
also offer financial services like wealth management, currency exchange, and safe deposit boxes.
Banks are classified into three types: retail banks, commercial or corporate banks, and
investment banks. Banks are regulated by the national government or central bank in the
majority of countries.
Banks are vital to the economy because they provide essential services to both consumers and
businesses. They provide you with a secure location to store your cash as a financial services
provider. You can conduct routine banking transactions such as deposits, withdrawals, check
writing, and bill payments using a variety of account types such as checking and savings
accounts, as well as certificates of deposit (CDs). You can also invest your money and earn
interest on it.
Banks also provide credit to individuals and businesses. Short-term cash deposits at banks are
used to lend to others for long-term debt such as car loans, credit cards, mortgages, and other
debt vehicles. This process contributes to market liquidity, which generates money and maintains
supply.
A bank's goal, like any other business, is to make a profit for its owners. The majority of banks'
owners are their shareholders. Banks accomplish this by charging borrowers higher interest rates
on loans and other debt than they do on savings accounts. Using a simple example, a bank that
pays 1% interest on savings accounts and charges 6% interest on loans earns a 5% gross profit
for its owners.
Type of Banks
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Retail banks serve only retail customers, though some global financial services firms have both
retail and commercial banking divisions. These banks, also known as personal or general
banking institutions, provide services to the general public. Checking and savings accounts, loan
and mortgage services, automobile financing, and short-term loans such as overdraft protection
are all offered by retail banks. Many larger retail banks also provide credit card services to their
customers, as well as foreign currency exchange. Larger retail banks frequently cater to high-net-
worth individuals by providing specialty services such as private banking and wealth
management.
Central Bank
The Reserve Bank of India is our country's central bank. Each country has a central bank that
oversees all other financial institutions in the country.
The central bank's primary function is to serve as the government's bank while also supervising
and regulating the country's other banking institutions. The following are the functions of a
country's central bank:
• Providing assistance to other financial institutions
• Money printing and monetary policy enforcement
• The financial system's watchdog
In other words, the country's central bank is also known as the banker's bank because it assists
other banks in the country and oversees the country's financial system.
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Cooperative Bank
• A law enacted by the state government governs these banks. They make short-term loans to
farmers and other agricultural industries.
• The primary goal of cooperative banks is to improve social welfare by making low-interest
loans.
• They are organised in a three-tiered structure.
• Tier 1 (State Level) State Cooperative Banks (regulated by RBI, State Govt, NABARD)
• The project is funded in part by the RBI, the government, and the National Bank for
Agriculture and Rural Development (NABARD). Following that, the funds are distributed to
the general public.
• CRR and SLR concessions apply to these banks. (SLR = 25%, CRR = 3%)
• The company is owned by the state, and the senior management is chosen by the members.
• Tier 2 Central/District Cooperative Banks (District Level)
• Agriculture (Tier 3 (Village Level)) (Primary) Cooperative Bank
Commercial Bank
Commercial or corporate banks offer specialised services to their business clients, which range
from small business owners to large corporations. In addition to day-to-day business banking,
these banks offer their clients credit services, cash management, commercial real estate services,
employer services, and trade finance.
• The company was established by the Banking Companies Act of 1956.
• They operate on a for-profit basis, with profit as their primary goal.
• They have a unified structure and are owned by the government, state, or any private
company.
• They are in charge of all sectors, from rural to urban.
• Unless otherwise directed by the RBI, these banks do not offer low-interest loans.
• The primary source of funds for these banks is public deposits.
• Commercial banks are further subdivided into three categories:
• The government or the country's central bank owns the majority of the stock in public sector
banks.
• Banks in the private sector are those in which the majority of the stock is owned by a private
entity, an individual, or a group of people.
• Foreign Banks – This category includes banks that have their headquarters in other countries
but have branches in the United States.
Regional rural bank
• These are special types of commercial banks that make low-interest loans to agriculture and
the rural economy.
• RRBs were established in 1975 and are governed by the Regional Rural Bank Act of 1976.
• RRBs are 50/50 joint ventures between the federal government and state governments (15%),
with a commercial bank as a partner (35 percent).
• There were 196 RRBs established between 1987 and 2005.
• The government began merging RRBs in 2005, bringing the total number of RRBs to 82.
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• A single RRB cannot open branches in more than three geographically connected districts.
Local Area Bank
• It was first introduced in India in 1996.
• These are organised by the private sector.
• The primary goal of local community banks is to make a profit.
• Local Area Banks are governed by the Companies Act of 1956.
• There are now only four Local Area Banks in operation, all of which are in South India.
Specialized Bank
• Certain banks exist solely to serve a specific purpose. Several types of financial institutions
are referred to as specialised banks. Here are a few examples:
• SIDBI (Small Industries Development Bank of India) - A loan from SIDBI can be obtained
for a small-scale enterprise or business. Small businesses can obtain cutting-edge technology
and equipment with the help of this bank.
• EXIM Bank (Export and Import Bank) - EXIM Bank is an abbreviation for Export and
Import Bank. This type of bank can lend money or provide other financial assistance to
foreign countries that are exporting or importing goods.
• NABARD (National Bank for Agricultural and Rural Development) – People can turn to
NABARD for financial assistance with rural, handicraft, village, and agricultural
development.
• Other specialist banks exist, each with a distinct role to play in the country's financial
development.
Small Finance Bank
As the name implies, this type of bank provides loans and financial assistance to micro-
enterprises, small farmers, and the unorganised sector of society. These institutions are
supervised by the country's central bank.
The following is a list of our country's small finance banks:
• AU Small Finance Bank
• Capital Small Finance Bank
• Equitas Small Finance Bank
• Fincare Small Finance Bank
• Jana Small Finance Bank
• Suryoday Small Finance Bank
• Utkarsh Small Finance Bank
• Esaf Small Finance Bank
• Ujjivan Small Finance Bank
• Northeast Small Finance Bank
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Payment Bank
The Reserve Bank of India invented the payments bank, a new type of banking. People with a
payment bank account can only deposit up to Rs.1,000,000/- and cannot apply for loans or credit
cards using this account.
Internet banking, mobile banking, ATM card issuance, and debit card issuance are all services
provided by payment banks. The following is a list of the few payment banks in our country:
• Airtel Payments Bank
• India Post Payments Bank
• Fino Payments Bank
• Jio Payments Bank
• Paytm Payments Bank
• NSDL Payments Bank
ABOUT PUNJAB & SIND BANK
Punjab & Sind Bank is a nationalised Indian bank. It is owned by the Ministry of Finance,
Government of India, and its headquarters are in New Delhi. As of 31 March 2020, the bank had
1526 branches spread across India, 635 of which were in the state of Punjab, and 25 zonal offices
located throughout the country.
HISTORY
It was in 1908 that a modest idea to help the poorest of the poor culminated in the establishment
of Punjab & Sind Bank, thanks to the foresight of luminaries such as Bhai Vir Singh, Sir Sunder
Singh Majitha, and Sardar Tarlochan Singh. They were held in the highest regard by the people
of Punjab. The bank was founded on the principle of social commitment to assist the less
fortunate members of society in their economic endeavours to improve their standard of living.
Decades have passed, but Punjab & Sind Bank remains committed to honouring the founding
fathers' social commitments.
VISION & MISSION

The bank's "Vision and Mission Statement."
THE BANK'S CORPORATE VISION:
To emerge as a technologically savvy, vibrant Public Sector Bank with a pan-India presence that
strives to exceed the expectations of all stakeholders.
The bank's mission statement is to provide excellent customer service through innovative
products and services for various customer segments using cutting-edge technology.
We pledge our undivided attention to "Sarva Jana Hitai Sarva Jana Sukhai."
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PRODUCTS & SERVICES
Major Functions of Banks

There are two types of functions of banks:
• Primary functions
• Secondary functions
Primary functions of bank
1. Accepting Deposits
2. Granting loans and advances
Accepting deposits
Mobilizing public funds, providing safe custody of savings, and paying interest to depositors is a
fundamental yet critical function of all commercial banks. The bank accepts various types of
deposits from the general public, including:
Saving Deposits promotes the practise of saving among the general public. It is appropriate for
salaried and wage earners. The interest rate is low. There are no limits on the number or amount
of withdrawals. The saving deposit account can be opened in either a single or joint name.
Depositors only need to keep a minimum balance, which varies between banks. In addition, the
bank offers ATM and debit card services, a check book, and Internet banking.
Fixed deposits, also known as term deposits, are a type of deposit. Money is deposited for a set
period of time. During this time, no money can be withdrawn. Banks charge a penalty for
premature withdrawal if depositors withdraw before maturity. Because a lump sum is paid all at
once for a set period of time, the interest rate is high but varies depending on the length of the
deposit.
Current deposits are opened by businesspeople. On this account, account holders have access to
an overdraft facility. These deposits function as a short-term loan to meet immediate needs. In
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order to maintain a reserve for unknown overdraft demands, the bank charges a high interest rate
in addition to the charges for the overdraft facility.
Recurring Deposits: A set amount of money is deposited in the bank on a regular basis. Money
can only be withdrawn after a certain time period has passed. On recurring deposits, a higher rate
of interest is paid because it provides the benefit of compounded interest and allows depositors to
collect a large sum of money. Salaried people and petty traders use this type of account.
Granting of loans and advances
The deposits received from the general public are used by banks to make loans to businesses and
individuals in order to help them meet their financial obligations. The bank charges a higher
interest rate on loans and advances than it does on deposits. The difference between the lending
interest rate and the deposit interest rate is the bank profit.
The following Loans and Advances are available from the bank:
Bank Overdraft: This service is only available to current account holders. It allows holders to
withdraw money at any time that exceeds the amount available in their bank balance, but only up
to the specified limit. An overdraft facility is provided in exchange for collateral security.
Overdraft interest is only paid on the borrowed amount for the period for which the loan is taken.
Cash Credits: a short-term loan facility with a predetermined limit. Banks allow customers to
borrow against a mortgage on specific property (tangible assets and / or guarantees). Cash credit
is extended to all types of account holders as well as those who do not have a bank account. The
amount withdrawn in excess of the limit is subject to interest charges. Cash credit allows for a
larger loan amount to be granted than overdraft for a longer period of time.
Loans: Banks lend money to customers for short or medium-term periods, such as 1 to 5 years, in
exchange for tangible assets. Banks now lend money on a long-term basis. The borrower repays
the money in either a lump sum or in instalments spread over a predetermined time period. The
bank charges interest on the loan amount, whether it is withdrawn or not. The interest rate is
lower than the interest rate on overdrafts and cash credit facilities.
Discounting the Bill of Exchange: A type of short-term loan in which the seller discounts the bill
from the bank in exchange for a fee. The bank lends money by discounting or buying bills of
exchange. It pays the bill amount to the drawer (seller) on the drawee's (buyer's) behalf after
deducting the usual discount charges. When the bill matures, the bank hands it over to the
drawee or acceptor to collect the bill amount.
Secondary functions of bank
1. Agency functions
2. Utility functions
Agency functions of bank
• Banks act as agents for their customers, so they must perform the following agency
functions:
• Transfer of Funds: The transfer of funds from one branch or location to another.
• Periodic Collections: Collecting dividends, salaries, pensions, and other similar periodic
payments on behalf of clients.
• Periodic Payments: Making periodic payments on behalf of the client for rent, electricity
bills, and so on.
• Collection of Cheques: Just like collecting money from bills of exchange, the bank collects
money from cheques through its customers' clearing sections.
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• Portfolio Management: Banks manage their clients' portfolios. It purchases and sells the
clients' shares and debentures, debiting or crediting the account.
• Other Agency Functions: This bank acts as a client representative for other institutions. It
serves as the client's executor, trustee, administrators, advisers, and so on.
Utility functions of bank
• Issuing letters of credit, traveller’s cheque, and so on.
• Providing safe deposit vaults or lockers for the safe custody of valuables, important
documents, and securities.
• Providing customers with foreign exchange trading services
• Share and debenture underwriting
• Trading in foreign currencies
• Programs for Social Welfare
• Project summaries
• Standing guarantee on behalf of its clients, and so on.
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DEPOSIT PRODUCTS AND DATA:
A deposit is a phrase used in finance to describe money held in a bank. A deposit is a financial
transaction in which money is transferred to another person for safekeeping. A deposit, on the
other hand, might refer to a sum of money held as security or collateral for the delivery of a
product.
Interest is earned when money is deposited into a financial account. This means that a little
proportion of the account's total is added to the amount of money already in the account at
regular periods. Depending on the bank or institution, interest can compound at various rates and
frequencies.
There are two types of deposits: demand and time. A demand deposit is a conventional bank
and savings account. You can withdraw the money anytime from a demand deposit account.
Time deposits are those with a fixed time and usually pay a fixed interest rate, such as
a certificate of deposit (CD). These interest-earning accounts offer higher rates than savings
accounts. However, time deposit accounts require that money be kept in the account for a set
period of time.
1. SAVING DEPOSIT:
Meaning-A savings account is a deposit account that pays interest and is held with a bank or
other financial organization. Despite the fact that these accounts often yield a low
interest rate, their safety and stability make them an excellent choice for storing funds for short-
term requirements.
Savings accounts have some restrictions on how frequently you can withdraw funds, but they
generally provide exceptional flexibility, making them ideal for building an emergency fund,
saving for a short-term goal such as a car or vacation, or simply sweeping surplus cash into your
checking account to earn more interest.
Applicability-
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However, in Punjab And Sind Bank various eligible criteria is being considered which are as
follows:
• HUF, Non-Corporate Bodies, Clubs, Trusts, Societies, Associations, Schools, Executor(s)
/ Administrator(s), Government Bodies, Semi-Government Departments, Recognized PF
Accounts, and others can open Savings Bank Accounts.
• Deposit accounts can be opened by an individual in his own name (status: known as
account in single name) or by more than one individual in their own names (status:
known as Joint Account).
• Savings bank Accounts can also be opened in the name of persons with autism,
cerebral palsy, mental retardation and multiple disabilities by the legal guardian
appointed by the District Court under Mental Health Act, 1987 or by the Local Level
Committees set up under the National Trust for welfare of persons with autism, cerebral
palsy, mental retardation and multiple disabilities under Disabilities Act, 1999. Legal
guardian, so appointed, will furnish an indemnity-cum-undertaking bond duly stamped as
per the local law in force along with Guardianship Certificate.
Note:
• Minors above the age of ten will be allowed to open and operate SB accounts on
their own, subject to transaction limits. i.e. a daily deposit of up to Rs 49999/- and
a daily withdrawal of Rs 50000/- by check and Rs 10,000/- via withdrawal slip.
• Check books will be issued to minor account holders (such checks will not be
presented in clearing) and withdrawals will be limited to self-only via cheque
book/withdrawal slips. In such circumstances, the minor's cheque book will be
marked "ONLY SELF WITHDRAWAL PERMITTED." These minors will not be
allowed an overdraft.
• Nomination facility is available on all deposit accounts opened by individuals.
Nomination is also available to a sole proprietary concern account.
Nomination can be made in favour of one individual only. Nomination so
made can be cancelled or changed by all the account holder(s) any time.
1.1 BASIC SAVING BANK DEPOSIT ACCOUNT: The bank is dedicated to

providing basic banking services to the most vulnerable members of society. Banking
services will be provided to them through a Basic Saving Bank Deposit Account (BSBDA),
which can be opened with less stringent customer acceptance criteria in accordance with
regulatory requirements. Customers who open a Basic Savings Bank Deposit Account
(BSBDA) will receive the following minimum services:-
• The 'Basic Savings Bank Deposit Account' will be considered a normal banking service
available to all.
• This account shall not have the requirement of any minimum balance.
• The services available in the account will include deposit and withdrawal of cash at bank
branch as well as ATMs; receipt / credit of money through electronic payment channels
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or by means of deposit / collection of cheques drawn by Central / State Government
agencies and departments
• There will be no limit on the number of deposits that can be made in a month, account
holders will be allowed a maximum of four withdrawals in a month, including ATM
withdrawals.
• The above facilities will be provided without any charges. Further, no charge will be
levied for non-operation / activation of in-operative 'Basic Savings Bank Deposit
Account'. Bank will also provide valued added service, including issuance of cheque
book to BSBDA account, however, these valued added services shall attract service
charges at normal rates.
1.2 PSB- PREMIER SAVINGS BANK A/C: The Bank has launched a scheme
called PSB–Premier Savings Bank Accounts with the goal of making the Bank's Savings
Deposit Scheme more customer friendly, increasing the Bank's market share (quantitatively
and qualitatively) in low cost deposits by attracting new constituents, and also adding a
competitive edge to our Savings Deposit product. It provides a slew of advantages to
customers.
• The accounts are to be opened with minimum amount of Rs.50,000/- or more in the Rural
& Semi – Urban Branches and Rs.2,00,000/- or more in the Urban & Metro Branches and
should continue to maintain minimum balance of Rs.50,000/- or more in the Rural &
Semi – Urban Branches and Rs.2,00,000/- or more in the Urban & Metro Branches.
• By maintaining minimum balance of Rs.50,000/- or more in the Rural & Semi – Urban
Branches and Rs.2,00,000/- or more in the Urban & Metro Branches by the account
holder in these accounts, Bank will give them following services free of cost: -
• Free ATM Cards.
• Statement of A/C without any charge.
• Waiver of Inward Cheque Returning Charges.
• Waiver of Cash Handling Charges on cash deposit up to Rs.3.lacs.
• Waiver of Locker Rent of Small Locker for one year.
• Cheque Book with name of the customer duly printed on the
Cheque Book.
1.3 PSB- FLEXI SAVING DEPOSIT PRODUCT:

The product provides liquidity in the form of a savings account, as well as greater returns on
funds held in a fixed deposit. Furthermore, there is a degree of flexibility because the depositor
can fulfil his or her financial needs without losing interest because a transfer of funds to Savings
is accessible as an in-built arrangement anytime the depositor needs it.
Features:
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• The account holder's, throughout the quarter, will have to maintain a minimum balance of
Rs.25000/-This limit is for all customers under all categories of branches.
• The exceeding amount in the multiple of Rs.5000/- over the threshold limit of Rs.
2,00,000/- for non-individual customers and Rs.50,000/- for individual customers will be
automatically transferred and invested into Bank’s Fixed Deposit Product for the period ranging
from 46 days to 180 days.
• Charges of Rs 150/- for Rural/Semi-urban Branches &Rs.300/-for Urban & Metro
Branches per quarter would be levied for non-maintenance of minimum balance.
• Reverse Sweep will be in or minimum of a multiple of Rs. 5,000/-.
• Method of Interest calculation will be on Daily Product basis and will compound
quarterly as per prevailing FDR guidelines.
• The Flexi Saving Product mandate will be signed by all holders of the account,
irrespective of mode of operation therein.
• The product is applicable to resident Indian only. The product is also applicable to
Staff/Ex-Staff.
• Normal saving account transactions can be carried out.
• Linked Flexi Fixed Deposit units will be renewed automatically.
• Default period of linked deposits opened under the PSB Flexi Savings Deposit product
will be 46 days. On renewal, FDR will be renewed for identical period unless and otherwise
specified by customer. Such deposits will carry rates of interest as revised by the Bank from
time to time for domestic Term Deposits.
• The existing SB account holders can give an option for converting to PSB Flexi Saving
Scheme.
Interest Rates on Saving Bank Deposits with effect from 16th September 2021.
Particular Rate of Interest
Saving Deposits 3.00% p.a.
2. RECURRING DEPOSITS:
Meaning-A Recurring Deposit, commonly known as RD, is a unique term-deposit that is offered
by Indian Banks. It is an investment tool which allows people to make regular deposits and earn
decent returns on the investment. Due to the regular deposit factor and an interest component, it
often provides flexibility and ease of investments to users/individuals.
However, it is essential to know that RDs are different from Fixed Deposits/FDs . RDs are
flexible in most aspects. An RD account holder can choose to invest a fixed amount each month
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while earning decent interest on the amount. RDs are an ideal saving-cum-investment
instrument.
Most major banks in India offer Recurring Deposit Accounts, with a term that often ranges
between 6 months to 10 years, also providing individuals with the opportunity to choose a term
according to their needs. However, the interest rate, once determined, does not change during the
tenure; and on maturity, the individual will be paid a lumpsum amount which includes the
regular investments as well as the interest earned.
2.1 PSB- RECURRING DEPOSIT ACCOUNTS:

✓ An individual who is not insolvent or insane, can open an account singly or
jointly.
✓ Such accounts can be opened by Individuals (singly or jointly), a firm, company,
club, Association , Institution, Govt. or Semi Govt. Body, Co-operative societies,
religious and charitable institutions etc.
✓ Minimum deposit in the Account - Minimum of Rs. 10/-
✓ Maximum deposit in the Account - Maximum of any amount per month.
✓ Minimum and Maximum tenure
✓ Minimum tenure - Minimum period six months.
✓ Maximum tenure - Maximum 10 years.
Rate of Interest- As per rate applicable to fixed Deposit for the respective maturity
period. The interest is compounded at quarterly intervals but paid along with principal at
the time of maturity of deposit.
Documents Required for opening of RD Accounts:
✓ Latest Passport Size Photo.

✓ “Officially Valid Document” (OVD): Anyone of the
following 6 documents that containing details of name
and address. .
✓ Passport(should not be expired)
✓ Driving License (should not be expired)
✓ Aadhaar Card
✓ Voter's ID Card
✓ NREGA Job card
✓ National Population Register.
✓ Permanent Account Number (PAN) or Form No. 60.
Note* No separate documents required for existing customer having updated KYC at the
time of opening of the term deposit account.
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3. CURRENT DEPOSITS:
Meaning-A current account, also known as a financial account, is a type of deposit
account held by people who make a lot of transactions with banks on a regular basis. The
bank creates it upon the applicant's request and makes it available for frequent or instant
access. Current accounts are liquid deposits that come with a variety of personalized
options to help with financial transactions. Payments to creditors can also be made with a
current account using the bank's cheque function. Current accounts, in general, do not
pay interest and have a greater minimum amount than savings accounts. However, the
greatest advantage of current bank account is that, account holders can easily avail
overdraft facility up to an agreed limit.
• Applicability- However, in PSB Bank, Current Accounts can be opened by
Individuals /Sole Proprietors / Partnership Firms / Private and Public Limited Companies
/ HUFs / Specified Associates / Societies / Trusts, Departments of Authority created by
Government (Central or State), Limited Liability Partnership, etc
• Account Opening and Operation of Deposit Accounts: Bank shall carry out due
diligence as required under "Know Your Customer" (KYC) guidelines issued by RBI,
Anti Money laundering rules and regulations and or such other norms or procedures
adopted by the Bank “Current Account” means a form of non-interest bearing demand
deposit where withdrawals are allowed any number of times.
• Current Deposit Account, the bank shall stipulate certain minimum balances to be
maintained as part of terms and conditions governing operation of such accounts.
3.1 PREMIER CURRENT ACCOUNT:

• Bank has been concentrating its efforts to increase the low-cost deposits and to increase
the low-cost deposit, there is need to attract the new customers / clients, with a new
product which suits their requirement / demand. Consequently, there has been value
addition in the existing current account. It has been named PSB Premier current Accounts
with a host of benefits for the customers.
• These accounts have to be opened with minimum amount of Rs.1,50,000/- or more in the
Rural & Semi – Urban Branches and with Rs.4,00,000/- or more in the Urban & Metro
Branches and should maintain minimum balance of Rs.1,50,000/- or more &
Rs.4,00,000/- or more respectively.
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• By maintaining minimum balance of Rs.1,50,000/- or more in the Rural & Semi – Urban
Branches and Rs.4,00,000/- or more in the Urban & Metro Branches in the accounts,
Bank will give them following incentives: -
✓ Free ATM Cards.

✓ Statement of A/C without any charge.
✓ Waiver of Inward Cheque Returning Charges.
✓ Waiver of Cash Handling Charges.
✓ Waiver of Locker Rent of Small Locker for one year.
✓ Cheque Book with name of the customer duly printed on the
Cheque Book.
✓ Waiver of ledger folio charges.
4. FIXED DEPOSITS:
Meaning- A fixed deposit, often known as an FD, is a type of investment that banks and
non-banking financial organizations (NBFCs) give to their customers to help them save
money. An FD account allows you to invest a large sum of money for a set length of time
at a specified rate of interest.
Applicability-
4.1 PSB- FIXED DEPOSIT SCHEMES

• Term Deposit Accounts can be opened by individuals /Sole Proprietors / partnership
firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies /
Trusts, Departments of Authority created by Government (Central or State), Limited
Liability Partnership, etc
• In case of Term Deposits with “Either or Survivor” or “Former or Survivor” mandate,
bank will allow premature withdrawal of deposit by the surviving joint depositor on the
death of the other, only if there is a joint mandate from the joint depositor in effect. All
account opening forms of Term Deposit should invariably contain conditions which
account holders can specify therein.
• In case any instructions/mandate is not received from the customer for not renewing the
deposits, the deposit will be auto-renewed, excluding deposits like PSB Fixed Deposit
Tax Saver Scheme, Capital gain deposit, Bulk Deposit, Inter Bank Deposit for the same
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period of time as the matured deposit at the prevailing rate of interest. The automatic
renewal of such deposits will be restricted up to the maturity value less than Rs. 2 crores.
4.2 Capital Gain Deposit Scheme
• This is a scheme under which the tax payers can avail of benefits of exemption from Capital
gains, only if the amount of Capital gains or the net consideration is deposited in Public
Sector Banks on or before their due date of filling the income tax return. (Subject to
conditions as contained in relevant provisions of I. Tax Act 1961,) as amended from time to
time.
• Please note that the additional interest rate benefit for Senior Citizens /Staff / Ex Staff is not
applicable under Capital Gain Scheme.
Documents Required for opening of RD Accounts:
✓ Latest Passport Size Photo.

✓ “Officially Valid Document” (OVD): Anyone of the following 6 documents that
containing details of name and address. .
✓ Passport(should not be expired)
✓ Driving License (should not be expired)
✓ Aadhaar Card
✓ Voter's ID Card
✓ NREGA Job card
✓ National Population Register.
✓ Permanent Account Number (PAN) or Form No. 60.
Note* No separate documents required for existing customer having updated KYC at the
time of opening of the term deposit account.
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Retail Loan Products
A retail loan is often given to an individual by Punjab and Sind bank to help them acquire
property, automobiles, or other assets such as needed gadgets. Individuals with a good credit
score are eligible for retail loans. Punjab and Sind Bank want to guarantee that such loans are
repaid on time; hence, having a strong repayment history and credit score is critical when
applying for a Retail loan. Interest is to be paid monthly or yearly, according to the financial
institution's predetermined terms and circumstances. People typically use retail loans when they
need to make an emergency purchase but do not have the finances to do so. A Housing Loan is
one of the most prevalent sorts of Retail loans. Purchasing a home is a costly endeavour, and the
ordinary middle-class Indian can hardly afford to pay for a home in a flat amount. In such a
circumstance, the bank agrees to lend the money, and the borrower agrees to pay it back in
instalments along with interest over a period of several years.
The Punjab and Sind bank's Retail Lending portfolio increased to Rs.18579 crore as of
31.03.2021, representing a 12.25 percent increase over the previous year's portfolio of Rs.16552
crore. The retail credit (Rs.18579 crore) to gross advances (Rs.67811 crore) ratio was 27.39
percent on March 31, 2021, compared to 26.45 percent on March 31, 2020.
The Punjab and Sind Bank has launched LOS (Loan Originating System) for retail banking
products to ease the loan process for customers and minimize the turnaround time.
The Punjab and Sind Bank has also launched PSB Performers’ League (PPL) as a motivational
campaign to create competitive environment amongst branches and to generate more Retail
Lending business during the campaign period.
The different retail loan products offered by bank are following:

1) PSB housing loan scheme:
PSB housing loan is for the purchase of a residential unit/
construction/ purchase of a plot of land and construction/
extension/ repair/ renovation. The plan is open to individuals,
groups of persons, and individual members of housing
associations. The minimum age to get this loan is 18 years and
maximum age is subject to repayment of loans. For purchasing the
house, flat, plot bank do need based financing and there is no
upper limit to this loan but bank only give maximum of 20 lakh
rupees as a loan amount for the purpose of renovation of home or
flat. The loan's collateral will be a first charge on the property in
the form of an equitable / registered mortgage. The property's title
must be clear, marketable, and unencumbered. If an intending
borrower who has purchased / entered into an agreement to buy housing property on power of
attorney basis offers sufficient collateral in the form of equitable mortgage of any other property
and / or Govt. Security (ies), the same may be considered and the property / security obtained at
the time of sanction may be released after obtaining the equitable mortgage of Housing property
financed, which shall remain the primary security for the loan. During the interim period, the
bank-financed property remains charged to the bank.
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2) PSB Vehicle Loan:
Purpose: For purchase of Two & Four Wheelers
Age: Minimum 18 Years; Maximum subject to repayment of loan
Margin: For New vehicles - 15% of on-road price. For old vehicles -
25%
Securities: Hypothecation of vehicle. RC/ comprehensive insurance
policy with bank clause incorporated therein.
Interest rate: Starting from 7.10% depends on loan amount.
Repayment: For new four-wheeler vehicles: Maximum 84 months.
For new two-wheeler vehicles: Maximum 36 months.
3) PSB Excellence Education Loan Scheme for Premier Institutions:

Eligibility: Students who have secured admission in regular full time
Degree / Diploma courses of all the IIMs, IITs and ISB Hyderabad.
Margin: Up to Rs 4.00 lac: NIL; Above Rs 4.00 lac: 5% The margin

shall be proportionate to loan amount disbursed. Above Rs 10.00 lac:
15% The margin shall be proportionate to loan amount disbursed.
Securities: Co- obligation of parents/guardian as co- borrowers. No

collateral security required
Interest rate: 7.25% also depend on ranking of college

Repayment: Maximum up to 10 years exclusive of Moratorium
period.
4) PSB Vyapar loan:

Purpose: For the working capital/any business purpose
requirements of the business concern. And also, for the construction
of shop in the pre-owned land or for purchase of ready built shop/
commercial space for business
Eligibility: Retail Traders/Wholesale Traders Contractors
Professional and self-employed Micro, Small & Medium Enterprises
Service/ Manufacturing concerns
Quantum of Finance: Minimum: Rs 5 lacs, Maximum: Rs 500 lacs.
(For purchase/construction of shop maximum finance is Rs 200 lacs)
(With deviations maximum finance can be upto Rs 1000 lacs)
Repayment: Term Loan: Repayable in maximum upto 10 years,
including moratorium period of maximum of 12 M Working Capital
Term Loan: Repayable in maximum upto 5 years, subject to annual
20 | P a g e
review. Overdraft Facility: Repayable on demand. Interest shall be recovered immediately when
due
Guarantee: Personal guarantee of owners of property, spouse/ major son of prop.,
directors/partners
Interest rate: starting from 8.5% and depends on risk and nature of business
5) PSB Mortgage Loan:

Purpose: This is an all purpose credit facility i.e. to meet
legitimate need based expenses viz- marriage /medical /educational
expenses / repairs / renovation / extension to the residence /
commercial property/ purchase of consumer durables or any
unforeseen expenses, and also for investment in business, to meet
credit needs of trade, commercial activities, other bona fide
requirements of business/ profession
Eligibility: Business Concerns (MSME) & Salaried Individuals
who are income tax assesses; Partnership firms, Proprietary firms,
Companies (Pvt./ Public Ltd.), HUFs, Trusts, Societies, NRIs
(subject to compliance of guidelines of Bank & RBI) Age limit:
Min 18 yrs, Max 65 yrs and owning residential/ commercial
property.
Repayment: For Term Loan: Maximum 10 years For Overdraft Facility: Repayable on demand.
The limit once sanctioned will hold good for 3 years. The overdraft facility is not allowed for
salaried class borrowers.
6) PSB Contractor Plus Scheme

Purpose: a) Working capital: Fund Based & NFB facilities limits to
meet day to day requirement / materials / labour payment / statutory
payments. b) Term Loan: For purchase of Plant & Machinery /
Equipment / Transport Vehicles to be used for the execution of
contract work.
Eligibility: MSME units engaged in the Contractor/ Subcontractor
activity.
Quantum of finance: Minimum: Rs10.00 Lakh; Maximum: Rs
2000.00 Lakh; 80% of the realizable value of the property
mortgaged
Repayment: ODP: On demand. Term Loan: Repayment in
maximum upto 10 years BG: Tenor of BG not to exceed 10 years.
Security: Equitable mortgage of immoveable property. 80% of the
realizable value of the property mortgaged
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Punjab & Sind Bank Commercial Loan Products and Data
Commercial loans can be defined as the type of loan that is offered to any type of business entity.
This type of loan is not provided to an individual loan applicant for their own personal matters.
This loan can be offered by both banks and Non-Banking Financial Institutions (NBFC’s).
Punjab and Sind Bank (PSB) would offer their business loan under MSME category. The
category of schemes under this loan are:
1. PSB Vyapar Scheme

Purpose of loan:
a. For working capital or any other business requirement
b. For the construction of a shop on previously owned land or for the purchase of a
ready-made shop or commercial space for a business
Eligibility
Borrowers who have been successfully engaged in trading/business activity for at least
one year previous to applying for financing under the plan and have made a monetary
profit during that time.
a. Retail traders and Wholesale traders
b. Contractors
c. Professional and Self-Employed
d. Newly Established Entities/Ventures are also eligible for credit under the scheme, but
only on the basis of merit and on a case-by-case basis.
Spouse Father Mother Son Son's Wife

Daughter's
Daughter Husband Brother Brother's Wife Sister
Sister's Spouse's Spouse's Spouse's
Husband Spouse's Brother Sister Mother Father
Loan Amount
Amount
Minimum Rupees 5 lakhs
Maximum Rupees 5 Crore (or 500 lakhs)
Note:
In terms of Maximum loan amount which is Rs 5 crore. Here, the maximum amount of
Rs 2 crore is provided for the purchase or construction of shop
Interest Rate
Repo Rate Spread EBLR
Overdraft Facilities 10.45% onwards 4% 5.40% 9.40%
Term Loan 11.20% onwards 4% 5.90% 9.90%
22 | P a g e
Working Capital 10.70% onwards 4% 5.65% 9.65%
Loan
Processing Charges
Term Loan 1% of loan amount with minimum of
Working Capital Loan Rupees 2000
Overdraft Facility 0.50%
Repayment
Term Loan Repayable in maximum upto 10 years
which includes a moratorium period of
maximum of 12 months
Working Capital Loan Repayable in maximum upto 5 years
Overdraft Facility Repayable on demand
Guarantee
A personal guarantee from the property owners, spouses, partners, or directors will be
required by the bank.
Concession
The maximum limit in concession for any of the below schemes is 1.25%
a. For circumstances when the realisable value of the security supplied as primary
security to the credit facility is available to the tune of 200 % or more, there is a
1.00 % reduction in ROI.
b. External credit ratings of 1 to 4 by SMERA, ICRA, ONICRA, or CRISIL are
eligible for a 0.25 % ROI discount.
c. If the account is classed as Priority Sector Advances, the ROI is reduced by
0.25%.
2. PSB SME Liquid Plus Scheme
Purpose:
To provide timely, hassle-free and adequate credit delivery to meet the liquidity mis-matches and
expenses incurred on activities like R&D, Product Development, Marketing and Branding,
stocking the seasonally available raw material etc.
Eligibility:
Credit facility against agricultural property is strictly not permitted. Credit facility shall not be
permitted against security of immovable property wherein Educational/ Religious Institutions are
located. Vacant land may preferably be not taken as security under the scheme.
Manufacturing and service-oriented Micro, Small, and Medium Enterprises.
a. Existing MSEs with a proper track record and new MSEs with a proper Due
Diligence Report.
23 | P a g e
b. Individuals, proprietors, partnership firms, private/public limited companies, and
co-operative societies are all included under MSMEs.
c. The property of following close relatives may be considered subject to becoming
of their co-borrower in the facility
Spouse Father Mother Son Son's Wife

Daughter's
Daughter Husband Brother Brother's Wife Sister
Sister's Spouse's Spouse's Spouse's
Husband Spouse's Brother Sister Mother Father
d. To reduce the practise of business concerns diverting funds and misusing credit
facilities obtained from the Bank to strengthen their financials with other banks, it
is recommended that customers seeking credit under the PSB SME Liquid Plus
Schemes maintain Working Credit Limit accounts with our Bank only and not
with any other bank/financial institution.
Loan Amount
Amount
Interest Rate:
Term Loan 9.55% 4% 5.25% 9.25%
facilities
repayable upto
5 years
Term Loan 9.75% 4% 5.45% 9.45%
facilities
repayable
above 5 years
Overdraft 9.30% 4% 5% 9%
facilities
Processing Charges
For Term Loan 1% of the loan amount with Minimum of Rupees 2000/-
For Overdraft Facility 0.50%
24 | P a g e
Repayment
For Term Loan Maximum upto 7 years

For Overdraft Repayable on demand. Interest shall be recovered immediately
when due
Guarantee
Personal guarantees are provided by the property owners, their spouses/major sons,
and directors/partners.
Concession
The maximum concessions in ROI under any of the Scheme shall not exceed 1.25%
in any case.
a. Concession of 1.00% in ROI for cases, where after maintaining the stipulated
margin requirements, the residual portion of the security offered as primary
security to the credit facility is available to the tune of 100% or more
b. External credit ratings of 1 to 4 by SMERA, ICRA, ONICRA, or CRISIL are

eligible for a 0.25 % ROI discount.
c. If the account is classed as Priority Sector Advances, the ROI is reduced by

0.25%.
3. PSB Commercial Vehicle
Purpose of loan
For the purchase of new commercial vehicles such as buses, trucks, tankers, tempos,
taxis, four-wheelers, and other modes of mass transportation, subject to the vehicle being
approved for commercial use by the relevant authority.
Eligibility
a. Individuals, proprietorship/partnership firm/ Limited company, trust, society,

associations owning and operating or proposing to own and operate transport vehicles
for carrying passengers or goods on hire.
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b. The borrower (s) must either have the required driver's licence or hire a driver with a
valid licence to operate the vehicle for which credit is being sought.
c. The borrower (s) must either have the required driver's licence or hire a driver with a
valid licence to operate the vehicle for which credit is being sought.
Loan Amount
a. 80 % of the vehicle's cost (pre-assembled/ chassis/ body/ chassis & body/ chassis &
body), one-time Registration & Road Tax, and Insurance Charges.
b. The scheme has a maximum amount of Rs 2.00 crore that can be sanctioned.
Interest Amount

Loan up to Rs. 25 4% 5.35% 9.35%
lakh
Loan above Rs. 25 4% 5.85% 9.85%
lakh
Processing Charge
One time: 1.00% of the loan amount
Repayment
a. Moratorium Period: Maximum 3 Months from the date of disbursement of loan.

b. Loan to be repaid in Equated Monthly Instalments (EMIs) in Maximum 5
Years (exclusive of moratorium period, if any)
Guarantee
a. Third party guarantee / guarantee of earning family member for loans up-to Rs.10 lakhs,
if not covered under CGTMSE
b. For cases above Rs.10 lakhs: Guarantee may be waived in the cases covered under
CGTMSE or where collateral is offered.
c. Guarantee of the property owner (if other than borrower) must be obtained in all the cases
where collateral is offered
26 | P a g e
d. Guarantor should enjoy good reputation in the market/field along with networth of atleast
200% of loan amount.
Margin
a. 20% margin on cost of vehicle (pre-assembled/ cost of chassis/ cost of body/ cost of
chassis & cost of body), onetime Registration Charges & Road Tax, and Insurance
Charges.
b. The borrower should bring in the required margin money.
DSCR
Minimum Net DSCR (debt service coverage ratio) requirement shall be 1.25:1
Primary Security:
Hypothecation of the vehicle to be purchased.
Collateral Security
a. Loan amounts up to Rs. 10 lakhs: Collateral Security is not required.
b. Loan amount above Rs.10 lakhs upto Rs.25 lakhs: Suitable collateral security to the
extent of minimum 25% of the sanctioned amount. (Except for cases covered under
CGTMSE)
c. Loan amount above Rs.25.00 lakhs: Suitable collateral security to the extent of
minimum 50% of the sanctioned amount. (Except for cases covered under CGTMSE)
Prepayment Charges
The borrower may opt to prepay / adjust the loan from his own verifiable legitimate sources
or genuine sale without attracting any penalty, except take-over of the loan by other bank/ FI/
NBFC, which would attract prepayment @1% of the balance loan amount.
Penalty
@ 2% over and above the contracted rate shall be charged for any default in repayment on
loan installment as per fixed repayment schedule.
4. PSB Doctors Special Scheme
27 | P a g e
Purpose of loan
Setting up/ acquiring/ construction/ Expansion/renovation of clinics, Hospitals/

Pathological/ Clinical Labs, Diagnostic Centers/ Physiotherapy centers, Nursing Homes,
etc. including furniture fixture, medical equipments and for purchase of vehicles,
ambulances/lifesaver ambulances, etc.
Eligibility
a. Medical Practitioners registered with statutory bodies like, MCI, DCI,CCIM, CCH
etc.
b. Having minimum qualification MBBS/BDS/BPT/BAMS or equivalent professional

degree.
Loan Amount
Amount
Note:
a. Working capital facility is restricted to maximum 5% of the Term Loan facility
sanctioned ‘or’ Rs 10 lakhs whichever is lower.
b. The maximum quantum should not exceed Rs 500 lakhs in case of composite facility
i.e. Term Loan & Working Capital.
Interest Rate

Rs. 5 Lakh to 4% 4% 8%
Rs. 2 Crore
Above Rs. 02 4% 4.50% 8.50%
Crore to Rs. 05
Crore
Processing Charge:
a. 0.25% of the loan amount upto Rs.50 lacs. (One Time)
b. 0.50% of the loan amount above Rs.50 lacs and upto Rs. 2 crore (One Time)
28 | P a g e
Repayment of Loan
A. For Term Loan
i. Repayment Period: Loan to be repaid in Equated Monthly Instalments (EMIs) in

Maximum 7 Years (inclusive of moratorium period, if any).
ii. Moratorium Period:
a. Maximum 2 years including construction period in case of new

construction of business premises financed by bank.
b. In all other cases maximum moratorium of 1 year may be allowed by the

Bank based on the justification and merits of the case.
B. For Working Capital Facility
Repayable on demand. Credit facility is subject to annual renewal. Interest to be

serviced as and when due.
Guarantee:
a. Loan upto Rs. 200 lakhs: No guarantee required, if covered under CGTMSE.
b. In all other cases, guarantee of Spouse/ major sons/ partners/ directors/ trustees/
suitable third party is required.
c. Personal guarantee of partners/directors is required in all cases irrespective of

coverage under credit guarantee scheme.
d. If owner of the mortgaged property is other than borrower, the guarantee of

property owner is required.
e. Guarantor should enjoy good reputation in the market/field along with networth
of atleast 200% of loan amount
Margin
a. 25% for purchase of equipment/machinery/vehicles
b. 35% for acquisition of premises/expansion/renovation/modernization
c. 25% on stocks
29 | P a g e
d. 40% on book debts
Security
a. Primary Security of Term Loan
i. Hypothecation of assets to be purchased/acquired with the help of Bank’s

finance.
ii. Mortgage of business premises if financed by the Bank
b. Primary Security for Working Capital facility
Hypothecation of stocks/ book debts
c. Collateral Security
i. Loan upto Rs 10 lakhs: No third party guarantee and/or collateral security is

required and the same should be covered under CGTMSE.
ii. Loan above Rs 10 lakhs and upto Rs 200 lakhs: Collateral security by way
of immovable property or liquid securities such as deposits, NSC, surrender
value of LIC policies, equivalent to 100% of the total exposure. Or, else the
loan will be covered under CGTMSE.
iii. For loan above Rs.200 lakhs and upto Rs 500 lakhs: Collateral security by
way of immovable property or liquid securities such as deposits, NSCs,
surrender value of LIC policies, equivalent to 100% of the total exposure.
Penal Interest
@ 2.0 % over and above the normal rate shall be charged on the amount of default, in
case of delay / default in payment of instalment / interest.
Prepayment
The prepayment facility is allowed without any charges but not within one year of the
loan availment. On pre-closure within one year of sanction, prepayment penalty @1 % of
the sanctioned amount to be charged.
Additional Benefits
30 | P a g e
a. Locker Rent Concession: 50% concession on locker rent for self and spouse for
first two years, who avail loan under this scheme.
5. PSB Professional Assist

Purpose
To assist self-employed professional persons, firms, associations and joint ventures of such
professional persons having professional degree/diploma/certification.
Eligibility
Professionals in any discipline viz. Engineers, Architects, Interior Designers, Fashion
Designer, Photographers, Financial Consultants (CA/ICWA/CS/CFA), Advocates and
specialized qualified service providers.
Age Requirements
a. Minimum: 21 years
b. Maximum: Should not exceed 65 years at the time of maturity of loan
Loan Amount
a. Cash Credit/Overdraft: Limit up to Rs 100.00 Lakh
b. Term Loan: Need based (Maximum Rs 200 Lakh)
c. Maximum Cumulative Exposure: Rs. 200.00 Lakh
Margin: 25%
Interest Rate: EBLR based. Effective Rate of Interest - 8.00%
Collateral Security
Credit guarantee Scheme or 100% Collateral Security in the shape of immovable
property/liquid security.
6. PSB Contractor Plus

Purpose
a. Term Loan: Fund Based & NFB facilities limits to meet day to day requirement /
materials / labour payment / statutory payments.
b. Term Loan: For purchase of Plant & Machinery / Equipment / Transport Vehicles to be
used for the execution of contract work.
c. Bank Guarantee: For bidding of tenders, mobilization of advance money, performance
of the contract, guarantee in favour of Central / State Govt & its various departments and
reputed Pvt. / Ltd. companies, guarantee for release of retention money
Eligibility
a. MSME units engaged in the Contractor/ Subcontractor activity.
31 | P a g e
b. Sub-contractors executing work on behalf of main contractors are also eligible under this
provided sub letting is through registered agreement and all required permission and
licenses / registration are available.
c. Borrowers can be Individual(s) / Sole Proprietorship / Partnership firm/ HUF/Joint

Venture/Joint Stock Company or any other entity engaged in this line of activity.
Loan Amount
Minimum Rupees 10 lakh

Maximum Rupees 2000 lakh
Note:
80% of the realizable value of the property mortgaged
Rate of Interest
Term Loan 4% 5.75% 9.75%
Facilities
Repayable upto 10
years
Overdraft facilities 4% 5.05% 9.05%
PSB Flexi Term 4% 5.05% 9.05%
Loan
Note:
a. For Overdraft facilities: 1 year MCLR + 2.00%
b. For Term Loan facilities repayable upto 10 years: 1 year MCLR + 2.75%
Repayment
a. ODP: On Demand
b. Term Loan: Repayment in maximum upto 10 years
c. BG: Tenor of BG not to exceed 10 years
Security:
Equitable mortgage of immoveable property. 80% of the realizable value of the property
mortgaged
Processing Charge:
a. For Term Loan/ Working Capital Term Loan: @1% of the loan amount with
minimum of Rs.2000
b. For Overdraft Facility/ BG: @ 0.50% of limit
PSB Flexi Term
32 | P a g e
Purpose of loan
Term loan for purchase of machinery, equipment, commercial vehicles, furniture &
fixture.
Type of facility:
PSB Flexi Term Loan is a pre-approved term loan, bundled with PSB Contractor Plus,
with an aim to provide term loan assistance to contractors in a smooth and hassle free
manner.
Eligibility:
• All MSME credit constituents having satisfactory credit history of minimum 1year
with bank and having working capital facility backed by property as primary or
collateral.
• PSB flexi term loan will be sanctioned with working capital limit under PSB
Contractor Plus of Rs.1.00 Crore and above.
Loan Amount: Term loan of maximum 25% of the working capital limit.
Rate of Interest: One Year MCLR + 2.00%
Processing Charges: One time charges of 1.00% at the time of disbursement.
Repayment5 years with 60 EMI.
Margin: 25%
Fee based services –
Fee-based services can be broadly classified into corporate and retail fee-based services.
Organizations avail of such services for meeting both their short-term and long-term financial
requirements. The common fee-based services offered to corporate clients are: cash management
services, letter of credit, bank guarantees, bill discounting, factoring/ forfaiting, forex services,
merchant banking, registrar services, underwriting services, custodial services, lease and hire
purchase, and credit rating. Retail fee-based services are availed of at large by the retail
customers for payments, money transfers, personal wealth management, online trading, etc.
While pricing of corporate fee-based services is relationship oriented and relatively flexible,
retail fee-based services have standardized pricing. Though fee-based services are not promoted
using the traditional promotion mix in a major way, their distribution is similar to that of banking
products. For corporate fee-based services, marketers use branches extensively, whereas their
retail counterparts use advanced technology channels such as the Internet. For wealth
management services in the retail segment, relationship-based personal selling is combined with
the technology-oriented channels of distribution.
The active involvement of people is necessary for rendering fee-based services as the people
factor decides the quality of service delivery. Many of the service providers recruit candidates
from reputed colleges and institutions, and train them to handle the customer requirements.
The process factor in service delivery can be analyzed in terms of the flow of activities, the
number of steps involved in each activity, and customer involvement. Providers of fee-based
services take all these factors into account for achieving high levels of service quality.
33 | P a g e
• Basic Banking /NEFT/RTGS/ECS/SMS Services
• ATM/Debit Card Transaction –
• Loans and Advances –
Service Charges on Loans and Advances have been grouped into four categories for easy
reference: as under:
(i) General Services Charges Annexure -A

(ii) Services Charges on ILC Annexure -B
(iii) Service Charges on Bank Guarantees and Annexure -C
(iv) Processing /Upfront Charges Annexure -D
• Foreign Exchange Transactions –
• Fee and Service Charges for Loans under Priority Sector

• Rental rates for Safe Deposit Locker –
The Bank provides Locker facilities to its customers with the following details on types of
Lockers available vis-à-vis rent of specified branches
(Amount in Rupees)
34 | P a g e
Sr.No Size of Category of Branches
Locker
Rural/S-Urban (Per Year) Urban (Per Metro (Per Year)
Year)
1 Small 1000 1000 1250
2 Medium 2000 2400 3000
3 Large 5000 6000 6000
4 Extra 8000 8000 8000
Large
(50% Concession in locker rent charges to existing staff as well as Ex-staff members of
Punjab & Sind Bank, Applicable to Small lockers only).
35 | P a g e
Third party products
According to the open architecture approach of IRDAI, Punjab & Sind Bank has formed a
corporate agency tie-up with three general insurance companies to provide excellent general
insurance products at competitive costs. The Bank will be able to meet the demands of all
segments of genuine consumers thanks to its agreements with prominent general insurers. Name
of the agencies are as follows:
A) Oriental Insurance Co. Ltd (OICL)

B) The New India Assurance Co. Ltd (NIACL)
C) Bajaj Allianz General Insurance Co. Ltd (BAGICL)
Above three are the companies that provide different type of policies that will be covered in the
following paragraphs.
A) Oriental Insurance Co. LTD
The Oriental Insurance Company Ltd. was founded on September 12, 1947, in
Mumbai. The Oriental Government Security Life Assurance Company Ltd founded
the company as a wholly owned subsidiary to conduct general insurance operations.
From 1956 until 1973, the company was a subsidiary of the Life Insurance
Corporation of India (till the General Insurance Business was nationalized in the
country). The General Insurance Corporation of India transferred all our Company's
shares to the Central Government in 2003.
The company is a pioneer in establishing methods for a smooth and orderly
commercial operation. The Company's strength is its highly skilled and motivated
workforce, which spans many disciplines and has a wide range of experience.
Oriental is a specialist in designing custom coverings for huge projects such as
power plants, petrochemical facilities, steel factories, and chemical plants. The
company has created a variety of insurance products to meet the demands of India's
urban and rural populations. To provide the finest customer service, the Company
has a technically skilled and capable team of employees.
• HEALTH INSURANCE: there are three different of policies that are being covered that
are as follows:
o Happy family floater policy
o Medical insurance policy (individual)
o Oriental super health Top-Up
• Motor Insurance (2 and 4 Wheelers)
• Property/Fire Insurance (Standard Fire)
• Personal accident insurance ( personal accident policy)
• Miscellaneous insurance: this also provides the insurance under there different
categories that are defined below as:
o Shopkeepers insurance
o Burglary insurance
o Householder insurance
36 | P a g e
B) The new India Assurance Co. Ltd.
NEW INDIA ASSURANCE CO. LTD, a Multinational General Insurance Company founded by
Sir Dorabji Tata in 1919, is based in Mumbai, India, and operates in 28 countries. In March
2021, our global revenue surpassed Rs. 31573 crores.
For more than 50 years, we have led the Non-Life Insurance industry in India.
In March 2021, our Indian business surpassed Rs.28548 crores. AM BEST Company has given
us a B++ Stable FSR Rating and a bbb+ Stable ICR Outlook. Since 2014, CRISIL has given us a
AAA/Stable rating, indicating that the company has the greatest level of financial strength to
meet its Policyholders' commitments.
Indian operations
Our Indian activities are spread out over all areas, with 473 DOs, 587 BOs, 25 DABs, and 1086
Micro Offices. As of March 31, 2021, we have 15249 workers and 1,02,804 agents offering
insurance services to our consumers. There are over 250 items in our catalogue.
The follow are the policies/services that have been offered by the company:
• Health Insurance: this particular insurance is divided into 7 sub categories and those are
as follows:
o Asha Kiran
o Floater Mediclaim
o Top up Mediclaim
o Arogya Sanjeevni policy
o Overseas Mediclaim (B&H)
o Overseas Mediclaim (E&S)
o Cancer guard policy
• Property/Fire Insurance
• Marine Cargo Insurance
• Personal accident Insurance
• Miscellaneous Insurance: this is further divided into 3 parts thar are as follows:
• Shopkeepers Insurance
• Griha Suvida Policy
• Householders Insurance
37 | P a g e
C) Bajaj Allianz General Insurance Co. Ltd (BAGICL)
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv
Limited and Allianz SE, the world's largest insurer. On May 2, 2001, the IRDA issued the
company a certificate of registration to undertake general insurance business in India. With
offices in over 1100 towns and cities, Bajaj Allianz General Insurance is now one of the largest
private insurers in the business. The company has been steadily extending its operations to better
serve its consumers.
We will have completed 20 years of care on May 2nd, 2021. We progressed from a small start-
up to an industry leader over the course of two decades. With the support of over 9000 workers,
a solid distribution network of over 80,000 agents, over 9,000 motor dealer partners, and over
240 bank partners, we have acquired the confidence of close to 11 crore clients. Most brokers,
web aggregators, and major e-commerce platforms are also affiliated with us. Throughout our
journey, we have developed significant ties with our partners, customers, and staff.
The follow are the policies/services that have been offered by the company:
• Health Insurance: this is the most commonly asked insurance by the customers and it
has several types that are as follows:
o Women Critical Illness
o Extra care Plus
o Critical Illness
o Health Guard
o M Care
o Family Health Care
o Arogya Sanjeevani
o Silver Health
o Star Package Policy
o Health Infinity
o Corona Kavach Policy
• Motor Insurance:
o Motor – 2 Wheeler
o Motor – Long term 2 Wheeler
o Motor – 4 Wheeler (Pvt Car)
Mutual funds
• UTI Asset Management Co. Ltd. (UTI AMC) is a professionally managed firm led by a
knowledgeable Board of Directors with diversified experience and a committed
management team with the necessary ability and experience.
• UTI AMC has been in charge of assets for a variety of companies. Domestic Mutual
Funds, Portfolio Management Services, International Business, Retirement Solutions, and
Alternative Investment Assets are just a few examples.
• UTI Mutual Fund has a strong in-house research team that tracks, researches, and
evaluates macroeconomic data, capital markets, and financial sectors, as well as a skilled
and professional fund management staff to look after the investments. It follows a five-
38 | P a g e
layered investment management system that includes Advisory, Decision Making,
Execution, Fund Accounting, and Control.
Products: there are various kinds of options available when it comes to to investing in mutual
funds and that are as follow:
• Assets class: this is further divided into 4 different types that are as follows:
Equity Funds: Equity funds invest largely in company stock and associated
instruments such as derivatives (such as futures and options) that trade on the
stock exchange. The fundamental goal of stock investing is capital growth, but
stocks may also pay dividends, which provide income to investors. When
comparing the volatility of equities and debt mutual funds, equity is the more
volatile asset type. For equity fund investments, investors must have a
moderately high to high risk appetite, as well as lengthier investment tenures.
Debt Funds: Debt funds generally invest in debt and money market
securities. Commercial papers (CPs), certificates of deposits (CDs), Treasury
bills (T-Bills), and other money market products are examples. Non-
convertible debentures (NCDs), Government Bonds or G-Secs, and other debt
market products are examples. The primary goal of debt or money market
instruments investment is to generate revenue in the form of interest
payments. Although the primary goal of debt funds is to create income, some
debt funds that take interest rate calls can also provide capital appreciation to
investors. The fundamental distinction between a debt fund and an equity fund
is that debt funds have far lower risks than equity funds.
Overnight Funds & Liquid Funds: In terms of time horizon and risk profile,
overnight funds are a step below liquid funds among debt funds. Overnight
Funds invest in debt instruments with a maturity date of the next day. Liquid
Funds invest in assets with a 91-day maturity. Since the money returns to the
Overnight Fund the next day when the ageing securities are sold by the Fund
Manager, Liquid Funds are subject to higher interest rate, credit, and default
risk than Overnight Funds.
Because they have no exit load, Overnight Funds are the best option for
storing excess funds for less than a week. Up to six days, liquid funds carry a
graduated exit load, and beyond that, there is no exit burden. Liquid Funds can
invest in any money market securities, such as CDs and CPs, that mature
within 91 days, regardless of credit quality. As a result, they may pose a
greater credit risk than Overnight Funds.
Liquid Funds tend to generate greater returns than Overnight Funds since they
have slightly more discretion in controlling credit risk due to the longer
maturity of their portfolio vs that of Overnight Funds. Overnight Funds should
be chosen if simplicity of withdrawal is a priority for a requirement that might
develop at any time. Liquid Funds may be a good choice if you're seeking for
a return on your excess cash for more than a week.
39 | P a g e
Hybrid Funds: Hybrid funds are mutual fund schemes that invest in two or
more asset classes and have a high level of diversification. The term "hybrid"
denotes a portfolio that invests in a variety of asset classes.
These funds are often known as asset allocation funds since they generally
invest in a combination of equities, debt, and other assets. Hybrid funds
provide investors with a diversified portfolio since they invest in a variety of
assets. As a result, investors have the option of investing in numerous asset
types through a single fund.
These funds have different risk tolerance levels, ranging from conservative
through moderate, relatively high, and aggressive.
• Exchanged Traded Funds: ETFs, or Exchange Exchanged Funds, are

passive investment products that are traded on stock exchanges. ETF fund
managers mirror the investment portfolio of the underlying index and
incorporate essential adjustments as soon as they are made in the underlying
index. Investors may opt to invest in ETFs to gain exposure to a variety of
asset classes, such as stock, gold, and so on.
• Solution Based funds:
o Wealth Builder
o Child Career Planning
o Tax Saving
o Retirement Planning
o Core Portfolio Builder
o ELSS
o Women and Investing
o Invest In SIP
40 | P a g e
Transfer and Settlement Services
1. RTGS/NEFT
a. RTGS
• The Bank offers its customers instant transfer of funds to other banks (Inter Bank). This
is made possible through Real Time Gross Settlement (RTGS) System, which is an online
system set up, operated and maintained by Reserve Bank of India to enable funds
settlement on real-time basis across banks in the country.
• The RTGS service window for customer's transactions is available 24/7
• Minimum / maximum amount stipulation for RTGS transactions
• The RTGS system is primarily for large value transactions. The minimum amount to be
remitted through RTGS is Rs.2 lakh. There is no upper ceiling for RTGS transactions.
Outward Remittance
i. Between Rupees 2 lakh to Rupees 5 lakh
Time of settlement Charges to be levied
From To
11:00
08:00 hours hours Rs 29 per transaction
After 11:00 13:00
hours hours Rs 27 per transaction
After 13:00 18:00
After 18:00
hours Rs 19 per transaction
ii. Above Rupees 5 lakh

Time of settlement Charges to be levied
From To
11:00
08:00 hours hours Rs 54 per transaction
After 11:00 13:00
After 13:00 18:00
After 18:00
hours Rs 44 per transaction
(GST extra)
b. NEFT
• RBI has introduced this fund transfer systems called RBI-NEFT System.
41 | P a g e
• This is an Inter-bank electronic funds transfer system to facilitate an efficient, secure,
economical, reliable and expeditious transfer of funds and clearing in the Banking sector
in India.
• The account holders with the branch can use the NEFT facility which is available
between all the Cities and the designated branches of Banks in India.
• NEFT services are available 24*7. NEFT Settles fund transfers in half-hourly batches
with 48 settlements occurring everyday regardless of a Holiday. (NEFT Batches start at
00:30 hours, 01:00 hours, 01:30 hours, 02:00 hours, 02:30 hours, 03:00 hours, 03:30
hours, 04:00 hours, 04:30 hours, 05:00 hours, 05:30 hours, 06:00 hours, 06:30 hours,
hours, 23:30 hours, 00:00 hours).
• No Minimum or Maximum amount stipulation for NEFT transactions
• Service Charges For NEFT

Outward Remittance
Rupees 2 per
Upto Rupees 10000 transaction
Above Rupees 10000 - Rupees 1 Rupees 4 per
Lakh transaction
Above Rupees 1 Lakh - Rupees 2 Rupees 14 per
Lakh transaction
Rupees 24 per
Above Rupees 2 Lakh transaction
GST Extra
2. PSB Rupay Prepaid Card

Eligibility
• The holder of Savings Bank/ Current/ Overdraft accounts in their individual capacity
is eligible for issue of Card.
• The account should be strictly KYC compliant.
• In case of joint accounts, only such accounts are eligible which are to be operated
singly, in the name of the first account holder and with the consent of the other
account holder/s.
Features
42 | P a g e
• A domestic Card used in India and to be issued as Non-Personalized Card only.
• Reload option Available
• Minimum Rs. 1,000/-, Maximum amount not to exceed Rs. 10,000/- at any time.
• Maximum per transaction limit per Card per day is restricted to Rs.10,000/-
(including ATM, POS & E-com).
• Low risk as there is no access to the Primary Account of the account holder.
• Can be used at ATMs of any Bank, displaying the logo of RuPay. The card can also
be used in POS terminals in India displaying RuPay Logo and online as well.
• The Card is valid up to the last working day of the month and the year indicated on
the Card.
• Maximum validity period of the card is seven (7) years.
•
3. ATM/Debit Card
a. ATM/Debit card annual charges from 2nd year onwards
Rs. 150 + Applicable taxes, per annum
b. Re-issue of ATM/Debit card

• Rs. 150 + Applicable GST, per instance
• Charges for Issue of Duplicate ATM/Debit Card/Replacement of ATM/Debit
Card : Rs 150/- + GST
c. Re-issue of PIN number

Rs. 50 + Applicable taxes, per instance
d. ATM transaction charges for saving account

• ATM in Metro Cities: 1st Three transactions Free on use of other Banks’
ATMs (financial and non-financial transactions in a calendar month)
• ATM in Non-Metro Cities: 1st Five transactions Free on use of other Banks’
ATMs (financial and non-financial transactions in a calendar month)
Charges on subsequent transactions thereafter:
(a) Rs.20/- + Applicable taxes, per financial transaction will be levied.
(b) Rs. 9/- + Applicable taxes, per *non-financial transaction will be levied.
e. ATM transaction charges for Current/CAOD Account

No Free transactions. Charges levied from 1st transaction onwards on use of other
Banks’ ATMs (financial and non-financial both)
(a) Rs.20/- + Applicable taxes, per financial transaction will be levied.
(b) Rs. 9/- + Applicable taxes, per *non-financial transaction will be levied.
4. Unified Payments Interface (UPI)
43 | P a g e
Unified payment Interface (UPI) is a single interface across all payment systems
developed by National Payment Corporation of India (NPCI). It is a platform where
customer can link any bank account maintained with different banks under single UPI
Application, by using his registered mobile number and transact through these accounts
24*7 in a hassle free manner.
UPI allows users to transfer money between any two parties via smart phone through a
payment identifier like Virtual Payment Address (VPA) without mentioning the details of
your Bank account.
Different modes for transferring funds using BHIM PSB are
• Payment through Virtual Payment Address (VPA)
• Payment through Account Number and IFSC
• Payment through Mobile Number and MMID
• Payment through Aadhaar Number
• Payment through Aadhaar Number and IIN
• Collect / Pull money through Virtual Payment Address
• Payment through UPI QR Code
• Payment through Bharat QR Code
Features of BHIM PSB
• BHIM PSB App use two factor authentication. At the time of registration your
device binding shall be done at server level.
• All PSB as well as Non PSB customer can use BHIM PSB App to send, receive
or make payments to anyone.
• User can add multiple bank accounts under BHIM PSB Application.
• User can transfer money using Virtual Payment Address (VPA) to any bank
account.
• User can add the beneficiaries just by entering his account detail or VPA
• Fund transfers are instant, 24*7, 365 days and absolutely free of cost and take
place in a completely safe and secure manner.
• User can also check the balance of their linked accounts
• User can make merchant payment by just entering UPI PIN.
• User can also make payment through UPI QR Code and Bharat QR Code by Scan
and Pay option.
44 | P a g e
• User can collect payment by sharing UPI QR Code generated through BHIM PSB
App.
• User can also block VPA and report SPAM too.
5. Mobile banking
PSB mPay is a user-friendly, safe, and easy to use mobile banking application which
provides various services to the customers of Punjab and Sind Bank. It comes with the
following features
• Balance inquiry
• Mini statement
• Immediate payment service (IMPS)
• Intra- bank fund transfer
• Inter- bank fund transfer (through NEFT)
• Cheque status
• Stop cheque
• ATM/ branch locator
• Bill payment facility
• Mobile recharge
• Temple donation
• DTH recharge
6. Point of Sale (POS)

A point of sale terminal (POS terminal) is an electronic device used to process card
payments at retail locations. Its major participants are as under:
• Acquiring Bank: The Bank which has installed the POS terminal at the merchant
location.
• Card Network: RuPay/Visa/MasterCard, etc. (Transaction routing and settling
agency)
• Customer: Card Holder
• Issuing Bank: The Bank which has issued the Card to the customer.
Type of Transactions
• ON-US Transaction: Where the issuing and acquiring bank are the same entity
45 | P a g e
• OFF-US Transaction: Where the issuing and acquiring bank are different
entities
7. India QR (Quick Response) Code Based Payment System
NPCI has also launched its own QR code solution names Bharat QR Code. MasterCard
and Visa to have a common Quick Response (QR) code-based payments solution to help
shops across India accept electronic payments without a card swipe machine
QR code or Quick Response code is a two-dimensional machine-readable code that is

made up of black and white squares. These can be read by the camera of a smartphone.
As part of a multi-pronged push towards a cashless society, the Indian government has
collaborated with RuPay, Mastercard and Visa, the three mobile payment providers in
India, to adopt a standard Quick Response (QR) code called as ‘Bharat QR’.
Bharat QR Code functionality is similar to transaction process through POS Terminals.
The merchants who are not interested to maintain the POS terminal and pay the rent, but
want to make available similar payment option to their customers for payment of the
Goods and services through their Mobile App. can avail Bharat QR Code facility.
Salient Features
• No Rentals
• No maintenance Cost
• No Installation Cost
• Immediate installation of Bharat QR Code functionality without any cost.
• Helpdesk/email for resolving the issue same as POS
• No hidden Cost
• The transaction proceeds will be credited to Merchant account on the next
working day.
• MDR same as of POS.
46 | P a g e
Long term view of PNB
Vision
“The vision of PNB is to be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Gangetic Plains providing entire range of financial products and
services under one roof"
Mission
“The mission of PNB is to make a self-sustaining Institute of International standards having the
status of a deemed university and having organic linkages with other national and transnational
academic Institutions in the area of IT, in various fields of universal banking, in a span of ten
years.”
Objectives
➢ To conduct Diploma and Certificate courses independently or in association with other
national or overseas institutions.
➢ To conduct Training Programmes, Seminars and Conferences relating to various facets of
IT driven banking, finance and insurance.
➢ To showcase various IT products and solutions relating to developments and innovations
in the area of finance and management.
➢ To develop software relating to Banking, Insurance and Finance
➢ To provide Consultancy Services in the aforesaid areas.
➢ To develop training aids and study materials including Computer Based Teaching (CBT).
Designing & testing of IT based products solutions and services etc.
Long – term view
To be the most admired Filipino financial services organization in the country in terms of:
➢ Financial performance – rank #1 or #2 in its businesses in terms of return on equity
➢ Innovativeness – in products, services, distribution and the use of cutting-edge
technology
➢ Customer perception – The preferred financial services provider
The customer-centred organization with a passion for service excellence
➢ Social responsibility – the employer of choice, a good corporate citizen and partner in
nation-building
➢ Long-term vision – developing competitive advantage on a sustained basis by
anticipating changes in customer’s preferences and in the manner of doing business
47 | P a g e
CONCLUSION:
Punjab And Sind Bank proves to be an ideal bank by their services and various facilities. It
provides various schemes for rural sector, have tie ups with auto sector firms like TATA Motors
and Maruti. It is active in various Government schemes facilitation and has around 1000
branches across India and 400 branches in India.But it has less penetration in the urban areas and
inadequate advertising and branding as compared to other banks.
However, electronic banking, which is a modern technology that banks provide to their
customers so that they can conduct business transactions at their leisure and access their bank
accounts 24 hours a day, seven days a week, is critical for the growth of the bank and the
financial system as a whole.
The impact of E banking on the global banking system is to supplement or facilitate conventional
banking and payment mechanisms, primarily by making many transactions cheaper, faster, more
secure, and more comfortable. Additionally, the global rise of information technologies has been
phenomenal. In comparison to banks abroad, banks can contact their consumers anywhere at any
time thanks to these technologies. Indian banks that offer online services still have a long way to
go before reaching Critical Mass. To develop the concept of digital banking in the Indian market,
which is gradually being accepted by the people of the country as a whole, there must be a
sufficient number of users and infrastructure in place.
Even in India, there is a desire to provide better and more personalized services to customers.
Customers' sentiments toward internet banking acceptance must be taken into account by banks.
The significance of security and privacy for online banking acceptance is a critical issue, and it
has been discovered that consumers have a limited grasp of internet banking, despite being aware
of the risks. Customers are more hesitant to join new technologies for ways that may provide less
risk, according to the current study. As a result, PSB Bank should build its website to address
both security and trust concerns.
In the case of financial institutions that have previously implemented E-Banking, they believe
that a paradigm shift in public perception is required. People's mindsets in India are evolving;
mobile banking and phone banking were not commonly accepted until recently, but they have
since become the killer applications of e commerce. In this way, e banking would be able to
break free from the existing retail banking business model and drastically reduce processing time
and costs.
Punjab and Sind Bank should take move to digital banking that would result in greater customer
satisfaction and long-term profitability.
48 | P a g e
References
https://punjabandsindbank.co.in/content/retail-loan-schemes
https://punjabandsindbank.co.in/content/archive-annual
https://financialservices.gov.in/banking-divisions/public-sector-banks
https://www.rbi.org.in/
https://punjabandsindbank.co.in/
https://punjabandsindbank.co.in/content/corporate-governance
https://www.investopedia.com/terms/r/retailbanking.asp#:~:text=Retail
%20banking%2C%20also%20known%20as,individual%20consumers%
20rather%20than%20businesses.&text=Services%20offered%20by%20r
etail%20banks,certificates%20of%20deposit%20(CDs).
49 | P a g e

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Banking Operations and Credit Analysis

Under the Supervision of

JAIPURIA INSTITUTE OF MANAGEMENT

SL No. Particulars Page No.

1 Introduction to Banking Sector 3

2 Introduction to Punjab and Sind Bank 7

3 Overall Bank Functioning 8

4 Deposit Products and Data 11

5 Retail Loans Product and Data 19

6 Commercial Loans Product and Data 22

7 Fee Based Services 33

8 Third Party Products 36

9 Transfer and Settlement Services 41

10 Long Term View on Bank 47

ABOUT PUNJAB & SIND BANK

VISION & MISSION

THE BANK'S CORPORATE VISION:

Major Functions of Banks

1.1 BASIC SAVING BANK DEPOSIT ACCOUNT: The bank is dedicated to

1.3 PSB- FLEXI SAVING DEPOSIT PRODUCT:

Particular Rate of Interest

Saving Deposits 3.00% p.a.

2.1 PSB- RECURRING DEPOSIT ACCOUNTS:

✓ Latest Passport Size Photo.

3.1 PREMIER CURRENT ACCOUNT:

✓ Free ATM Cards.

4.1 PSB- FIXED DEPOSIT SCHEMES

Documents Required for opening of RD Accounts:

✓ Latest Passport Size Photo.

The different retail loan products offered by bank are following:

Age: Minimum 18 Years; Maximum subject to repayment of loan

3) PSB Excellence Education Loan Scheme for Premier Institutions:

Margin: Up to Rs 4.00 lac: NIL; Above Rs 4.00 lac: 5% The margin

Securities: Co- obligation of parents/guardian as co- borrowers. No

Interest rate: 7.25% also depend on ranking of college

4) PSB Vyapar loan:

5) PSB Mortgage Loan:

6) PSB Contractor Plus Scheme

1. PSB Vyapar Scheme

Spouse Father Mother Son Son's Wife

Spouse Father Mother Son Son's Wife

For Term Loan Maximum upto 7 years

b. External credit ratings of 1 to 4 by SMERA, ICRA, ONICRA, or CRISIL are

c. If the account is classed as Priority Sector Advances, the ROI is reduced by

3. PSB Commercial Vehicle

a. Individuals, proprietorship/partnership firm/ Limited company, trust, society,

Repo Rate Spread EBLR

One time: 1.00% of the loan amount

a. Moratorium Period: Maximum 3 Months from the date of disbursement of loan.

b. The borrower should bring in the required margin money.

Hypothecation of the vehicle to be purchased.

a. Loan amounts up to Rs. 10 lakhs: Collateral Security is not required.

4. PSB Doctors Special Scheme

Setting up/ acquiring/ construction/ Expansion/renovation of clinics, Hospitals/

b. Having minimum qualification MBBS/BDS/BPT/BAMS or equivalent professional

Repo Rate Spread EBLR

a. 0.25% of the loan amount upto Rs.50 lacs. (One Time)