Sonali Bondre

A
PROJECT REPORT
ON
“A COMPRATIVE STUDY OF AGRICULTURAL LOAN FROM STATE
BANK OF INDIA AND BANK OF BARODA” FOR THE YEAR (2020-22)”
SUBMITTED TO
RASHTRASANT TUKADOJI MAHARAJ NAGPUR

UNIVERSITY, NAGPUR
IN PRATIAL FULFILLMENT OF THE REQUIREMENTS OF

BACHELOR OF BUSINESS ADMINISTRATION
SUBMITTED BY
SONALI BONDARE
UNDER THE GUIDENCE OF
DR. SANJAY CHOURE

(SESSION - 2022-2023)
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CERTIFICATE
DEPARTMENT OF BUSINESS MANAGEMENT REVNATH CHOURE

COLLEGE, NAGPUR
This is to certify that it is a bonfire record of project work entitled
“A COMPARATIVE STUDY OF AGRICULTURAL LOAN FROM

STATE BANK OF INDIA AND BANK OF BARODA”
Carried out by Sonali Bondare of BBA final year. Finance specialization, during
academic year 2022-2023, in partial fulfillment of the requirement for the award of
the degree of Bachelor of Business (Finance specialization) offered by Rashtrasant
Tukdoji Maharaj Nagpur University, Nagpur.
Date:- Dr. Sanjay Choure

Place :- (Head of Department)
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DECLARATION
I hereby declare that the dissertation entitled “A COMPRATIVE STUDY OF

AGRICULTURAL LOAN FROM STATE BANK OF INDIA AND BANK OF
BARODA” has been completed by me in partial fulfillment of BBA Part III degree
examination as prescribed by Rashtrasant Tukdoji Maharaj Nagpur University and
had not been submitted for any other examination and does not form the part of
any other course undergone by me.
The source of material, data used in this study have been fully acknowledged.
Date: - Researcher
Place: - Saoner Sonali Bondare
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ACKNOWLEDGMENT
My foremost thanks to MR. SANJAY CHOURE (DIRECTOR) Revnath

Choure College, Saoner for motivating me in my project work. My outmost
thanks to all the staff members for their valuable support, guidance and
suggestions during my project work. I also thankful to DR. SMITA
CHOURE (HOD) for their valuable guidance during the project.
Date: - RESEARCHER
Place: -SAONER SONALI BONDARE
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INDEX
Sr. Content Page No.
No.
1. Executive Summary 7-9
2. Introduction 11-15
3. Company Profile 17-46
5. Objective Of Study 48
6. Scope OF Study 50
7. Research Methodology 52-53
8. Data Analysis and Interpretation 55-62
9. Observation 64
10. Finding 66
11. Suggestion 68
12. Conclusion 70
13. Bibliography 72
14. Questionnaire 74-75
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EXECUTIVE SUMMARY
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Executive summary
The Reserve Bank of India (RBI), as the central bank of the country, closely monitors
developments in the whole financial sector.
The banking sector is dominated by Scheduled Commercial Banks (SBCs). As at end DECEMBER
2022, there were 137 Commercial banks operating in India. This included 12 Public Sector Banks
(PSBs), 21 Private, 45 Foreign and 43 Regional Rural Banks, Payment Banks 4, Small Finance
Bank 12. Also, there were 85 scheduled co-operative banks consisting of 54 scheduled urban
cooperative banks and 31scheduled state co-operative banks.
Scheduled commercial banks touched, on the deposit front, a growth of 9.8% as against 9.9 %
registered in the previous year.
State Bank of India is still the largest bank in India with the market share of 20% ICICI and its two
subsidiaries merged with ICICI Bank, leading creating the second largest bank in India with a
balance sheet size of Rs. 1040bn.
Higher provisioning norms, tighter asset classification norms, dispensing with the concept of ‘past
due’ for recognition of NPAs, lowering of ceiling on exposure to a single borrower and group
exposure etc., are among the measures in order to improve the banking sector.
A minimum stipulated Capital Adequacy Ratio (CAR) was introduced to strengthen the ability of
banks to absorb losses and the ratio has subsequently been raised from 8% to 9%. It is proposed to
hike the CARto 18.9% by 31 MARCH 2022 based on the Basle III guidelines.
Retail Banking is the new mantra in the banking sector. The home Loans alone account for nearly
two- third of the total retail portfolio of the bank. According to one estimate, the retail segment is
expected to grow at 20-30% in the coming years.
Net banking, phone banking, mobile banking, ATMs and bill payments are the new buzz words
that banks are using to lure customers.
With a view to provide an institutional mechanism for sharing of information on borrowers /

potential borrowers by banks and Financial Institutions, the Credit Information Bureau (India) Ltd.
(CIBIL) was set up in August 2000. The Bureau provides a framework for collecting, processing
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and sharing credit information on borrowers of credit institutions. SBI and STATE BANK OF
INDIA & BANK OF BARODRA are the promoters of the CIBIL.
The RBI is now planning to transfer of its stakes in the SBI, NHB and National bank for
Agricultural and Rural Development to the private players. Also, the Government has sought to
lower its holding in PSBs to a minimum of 33% of total capital by allowing them to raise capital
from the market. Banks are free to acquire shares, convertible debentures of corporate and units of
equity oriented mutual funds, subject to a ceiling of 5% of the total outstanding advances (including
commercial paper) as on March 31 of the previous year.
The finance ministry spelt out structure of the government-sponsored ARC called the Asset
Reconstruction Company (India) Limited (ARCIL), this pilot project of the ministry would pave way for
smoother functioning of the credit market in the country. The government will hold 49% stake and private
players will hold the rest 51%- the majority being held by ICICI Bank (24.5%).
Reforms in the Banking sector
The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969 and
resulted in a shift from Class banking to Mass banking. This in turn resulted in a significant growth
in the geographical coverage of banks. Every bank has to earmark a minimum percentage of their
Loan portfolio to sectors identified as “priority sectors”. The manufacturing sector also grew during
the 1970s in protected environs and the banking sector was a critical source. The next wave of
reforms saw the nationalization of 6 more commercial banks in 1980. Since then the number
scheduled commercial banks increased four-fold and the number of banks branches increased eight-
fold.
After the second phase of financial sector reforms and liberalization of the sector in the early
nineties, the Public Sector Banks (PSB) s found it extremely difficult to complete with the new
private sector banks and the foreign banks. The new private sector banks first made their
appearance after the guidelines permitting them were issued in January 1993. Eight new private
sector banks are presently in operation. This banks due to their late start have access to state-of-the-
art technology, which in turn helps them to save on manpower costs and provide better services.
During the year 2000, the State Bank of India (SBI) and its 7 associates accounted for a 25% share in
deposits and 28.1% share in credit. The 20 nationalized banks accounted for 53.5% of the deposits and
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47.5% of credit during the same period. The share of foreign banks ( numbering 42 ), regional rural banks
and other scheduled commercial banks accounted for 5.7%, 3.9% and 12.2% respectively in deposits and
8.41%, 3.14% and 12.85% respectively in credit during the year 2000.
Classification of Banks:
The Indian banking industry, which is governed by the Banking Regulation Act of India
1949 can be broadly classified into two major categories, non-scheduled banks and scheduled
banks. Scheduled banks comprise commercial banks and the co-operative banks. In Terms of
ownership, commercial banks can be further grouped into nationalized banks, the State Bank of
India and its group banks, regional rural banks and private sector banks (the old / new domestic
and foreign). These banks have over 67,000 branches spread across the country. The Indian
banking industry is a mix of the public sector, private sector and foreign banks. The private sector
banks are again spilt into old banks and new banks.
Banking System in India
Reserve bank of India (Controlling Authority)
Development Financial institutions Banks
IFCI IDBI ICICI NABARD NHB IRBI EXIM Bank SIDBI
Commercial Regional Rural Land Development Cooperative
Banks Banks Banks Banks
Public Sector Banks Private Sector Banks
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INTRODUCTION
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Introduction
Indian economy is basically agrarian. Nearly 70% of the Indian population depends upon
agriculture for its livelihood.
AGRICULTURE plays a crucial role in the Indian economy and is pivotal for ensuring food
security, employment generation and social transformation of the nation. With 67 per cent of our
population and 54 per cent of the total workforce depending on agriculture and other allied
activities, agriculture not only meets the basic needs of India’s growing population, but its direct
linkages with the industry is on the increase owing to the increased demand for processed
agricultural commodities and goods by consumers.
Agriculture in India is the means of livelihood of almost two thirds of the work force in the
country. It has always been INDIA'S most important economic sector. The 1970s saw a huge
increase in India's wheat production that heralded the Green Revolution in the country. The
increase in post -independence agricultural production has been brought about by bringing
additional area under cultivation, extension of irrigation facilities, use of better seeds, better
techniques, water management, and plant protection. Dependence on India agricultural imports in
the early 1960s convinced planners that India's growing population, as well as concerns about
national independence, security, and political stability, required self-sufficiency in food
production. This perception led to a program of agricultural improvement called the Green
Revolution, to a public distribution system, and to price supports for farmers. The growth in
food-grain production is a result of concentrated efforts to increase all the Green Revolution
inputs needed for higher yields: better seed, more fertilizer, improved irrigation, and education of
farmers. Although increased irrigation has helped to lessen year-to-year fluctuations in farm
production resulting from the vagaries of the monsoons, it has not eliminated those
fluctuations. Non-traditional crops of India, such as summer mung (a variety of
lentil, part of the pulse family), soyabeans, peanuts, and sunflowers, were
gradually gaining importance. Steps have been taken to ensure an increase in the supply of
non- chemical fertilizers at reasonable prices. There are 53 fertilizer quality control laboratories
in the country. Realizing the importance of Indian agricultural production for economic
development, the central Government of India has played an active role in all aspects of
agricultural development. Planning is centralized, and plan priorities, policies, and resource
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allocations are decided at the central level. Food and price policy also are decided by the central
government. Thus, although agriculture in India is constitutionally the responsibility of the states
rather than the central government, the latter plays a key role in formulating policy and providing
financial resources for agriculture. Expansion in crop production, therefore, has to come almost
entirely from increasing yields on lands already in some kind of agricultural use.
The monsoons, however, play a critical role in Indian agriculture in determining whetherthe harvest
will be bountiful, average, or poor in any given year. One of the objectives of government policy
in the early 1990s was to find methods of reducing this dependence on the monsoons
In India, the Reserve Bank contributes to a great extent in the economic development in various
ways. It assumes special responsibility in the development of agriculture & industry. The RBI
concentrates more on these two vital sectors of the economy. RBI does not presently provide
these finances directly.
RESERVE BANK OF INDIA & AGRICULTURE FINANCE
Agriculture development is regarded as a prerequisite of economic development of the country.

The Reserve Bank of India realizes the following basic contributions of the Agricultural sector in
the overall economic development.
 Product contribution – making available food & raw materials.

 Market contribution – providing the market for producer goods and consumers goods produced
in the non-agricultural sector.
 Factor contribution – making available labor & capital to non-agriculturalsector, and
 Foreign exchange contribution.
Being the largest industry in the country agriculture is the source of livelihood forover 70%
of population in the country. On recognizing the fact that Agriculture is the foundation on which
the entire super structure of the growth of industrial and other sectors of the economy has to
stand, the RBI develops the Agricultural sector in the following ways:
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Agriculture Credit Department
According to section 54 of the RBI Act, it is required to set up a separate Agricultural Credit
Department. With the formation of NABARD in 1982, all the activities of this Department have
been transferred to NABARD. However, the Rural Planning and Credit Department in the
Reserve Bank deals with the following agriculture related matters.
Funds for Agricultural Development
 Financial Assistance to Co-operative Sector

 Establishment of agricultural Credit Board
 Establishment of NABARD
Credit Functions
o Short-term Credit
o Medium-term Credit
o Long-term Credit
o Conversion & Rescheduling Facilities
o Financing Cottage/Village/Small Scale Industries, etc.
The successive five year plans embarked upon the green revolution and white revolution for
which modernization and mechanization of agriculture and allied activities was a must and that
needed financial support. As one of the measures to develop the economy and to provide support
for nation building, Bank of India commenced rural lending way back in 1968 even before the
nationalization of banks.
During the post nationalization period, spanning more than 3 decades, the Bank has grown in
size and stature with more than 2592 branches (1723 rural and semi-urban branches) spread
across the length and breadth of the country. The Bank has been supporting the task of nation
building by implementing varied polices/guidelines of the Government with clear objectives. As
against the benchmark of 40% prescribed by Reserve Bank of India under Priority Sector to Net
Adjusted Credit, the Bank’s achievement is consistently over 45% for the last 5 years.
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The Bank has achieved business level of Rs. 16,800 crores as on February 2005, under
priority sector. Presently, the Bank has more than 13.80 lakh borrowal accounts under Priority
Sector credit fold and there are innumerable satisfied borrowers who have come up in life with
our timely financial assistance.
Keeping in view the rich past experience and in tune with the Government of
India/Reserve Bank of India guidelines, the Bank is adopting innovative and growth oriented
administrative policy measures.
Focused attention is given to build a loyal band of customers in Rural & Semi- urban areas
where the Bank has more than 67% of its Branch Network. This has enabled development of
individuals, a village or even the given area by increased production and productivity, through
smooth flow of credit.
The Bank has, of late, launched innovative schemes/card products with defined objectives and
refined methodology. The Philosophy, concepts and various issues behind launch of our various
new card products/schemes are as under:-
i) Intensive financing in service area with package of services to optimally
utilize the resources at the command of the borrowers, particularly farmers and rural
entrepreneurs;
ii) To maintain continued relationship with our existing borrowers by

providing credit packages which take care of both the present as well as future aspirations of the
borrowers in pursuing their various productive ventures;
iii) Providing credit for the diversified needs of the borrower’s family for
farm, off-farm as well as consumption needs like housing, education, conveyance, marriages,
health etc.;
iv) Recognizing our good borrowers and rewarding their loyalty by offering
concessional rates of interest, better operational flexibility in the operation of their accounts,
v) Focused attention for development of crops being grown in the given area
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like Cotton, Sugarcane, Potato, Chillies, Mangoes, Grapes, Oranges etc. Building up
infrastructure for preservation and processing these crops. Offering credit against stored farm
produce so that farmers are not forced to sell in a buyers’ market.
vi) Building up infrastructures at farm level through irrigation, farm
mechanization and supportive allied activities like Dairy etc.
vii) To promote growth of industries including small artisans, services and

business sectors. For borrowers with established credentials, the package of assistance is
redefined to take care of growth as well as seasonal credit needs without any hassles.
viii) In pursuit of achieving national objectives like better education and

housing to all, the products are re-modeled to make them attractive with longer gestation period
and lowered EMI at affordable interest cost.
ix) The process of submission of applications for loans, sanction,

documentationand disbursements have been further simplified.
x) Rehabilitation package for Tsunami victims.
The various innovative schemes/card products are:
 Star Composite Cash Credit (CCC):
 Kinas Credit Card (KCC)
 Kisan Gold Card (KGC)
 Star Kisan Samadhan Card (KSC)

(CCC, KCC & KGC are now subsumed into KSC)
 Star Bhoomiheen Kisan Card (BKC);

Star Artisan Credit Card (ACC);
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COMPANY PROFILE
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COMPANY PROFILE
STATE BANK OF INDIA
State Bank Bhavan, Nariman Point, Mumbai

Formerly Imperial Bank of India
Type CPSU
Traded as  NSE: SBIN
 BSE: 500112
 LSE: SBID
 BSE SENSEX Constituent
 NSE NIFTY 50 Constituent
ISIN INE062A01020
Industry Banking, financial services
Predecessor Imperial Bank of India
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(1921 – 1955)
Bank of Calcutta(1806 – 1921) Bank of Bombay(1840 – 1921)
Bank of Madras(1843 – 1921)
Founded 1 July 1955; 67 years ago
State Bank of India
 27 January 1921
Imperial Bank of India
2 June 1806
Bank of Calcutta
15 April 1840
Bank of Bombay
1 July 1843
Bank of Madras
Headquarters State Bank Bhawan, M.C. Road, Nariman Point, Mumbai, Maharashtra, India
Number of locations 22,219 Branches, 62,617 ATMs in India, International: 229 Branches in 31
countries
Area served Worldwide
Key people Dinesh Kumar Khara (Chairman)
Products  Retail banking
 Corporate banking
 Investment banking
 Mortgage loans
 Private banking
 Wealth management
 Credit cards
 Finance and Insurance
Revenue ₹406,973 crore (US$51 billion) (2022)

Operating income ₹78,898 crore (US$9.9 billion) (2022)
Net income ₹43,774 crore (US$5.5 billion) (2022)
Total assets ₹5,177,545 crore (US$650 billion) (2022)
Total equity ₹300,972 crore (US$38 billion) (2022)
Number of 2,44,250 (March 2022)
employees
Parent Ministry of Finance
(Government of India)
Subsidiaries  SBI Life Insurance Ltd
 SBI Cards and Payment Services Ltd
 SBI General Insurance (70%)
 Jio Payments Bank (30%)
 Yes Bank (30%)
 Andhra Pradesh Grameena Vikas Bank (35%)
 Kaveri Grameena Bank (35%)
Capital ratio Tier 1 11.03% (2022)

Website bank.sbi
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State Bank of India (SBI) is an Indian multinational public sector bank and financial services
statutory body headquartered in Mumbai, Maharashtra. SBI is the 49th largest bank in the world
by total assets and ranked 221st in the Fortune Global 500 list of the world's biggest
corporations of 2020, being the only Indian bank on the list. It is a public sector bank and the
largest bank in India with a 23% market share by assets and a 25% share of the total loan and
deposits market. It is also the fifth largest employer in India with nearly 250,000 employees. On
14 September 2022, State Bank of India became the third lender (after STATE BANK OF
INDIA & BANK OF BARODRA Bank and ICICI Bank) and seventh Indian company to cross
the ₹ 5-trillion market capitalisation on the Indian stock exchanges for the first time.
The bank descends from the Bank of Calcutta, founded in 1806 via the Imperial Bank of India,
making it the oldest commercial bank in the Indian subcontinent. The Bank of Madras merged
into the other two presidency banks in British India, the Bank of Calcutta and the Bank of
Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India in
1955. Overall the bank has been formed from the merger and acquisition of more than twenty
banks over the course of its 200 year history. The Government of India took control of the
Imperial Bank of India in 1955, with Reserve Bank of India (India's central bank) taking a 60%
stake, renaming it State Bank of India.
On 16th Aug 2022 an attempt to facilitate and support start-ups in the country, the State Bank of
India (SBI) announced the launch of its first "state-of-the-art" dedicated branch for start-ups in
the country in Bengaluru.
History
Stamp dedicated to the State Bank of India in 2005
Share of the Bank of Bengal, issued 13 May 1876
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Seal of Imperial Bank of India
The roots of State Bank of India lie in the first decade of the 19th century when the Bank of
Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal
was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15
April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks
were incorporated as joint stock companies and were the result of royal charters. These three
banks received the exclusive right to issue paper currency till 1861 when, with the Paper
Currency Act, the right was taken over by the Government of India. The Presidency banks
amalgamated on 27 January 1921, and the re-organised banking entity took as its name Imperial
Bank of India. The Imperial Bank of India remained a joint-stock company but without
Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1
July 1955, the Imperial Bank of India became the State Bank of India. In 2008, the Government
of India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of
interest because the RBI is the country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made eight
banks that had belonged to princely states into subsidiaries of SBI. This was at the time of the
First Five Year Plan, which prioritised the development of rural India. The government
integrated these banks into the State Bank of India system to expand its rural outreach. In 1963
SBI merged State Bank of Jaipur (est. 1943) and State Bank of Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI
acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of
Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram
Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of
Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender,
owned by the Maharaja. The new bank's first manager was Jall N. Broacha. In 1985, SBI
acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its
affiliate, the State Bank of Travancore, already had an extensive network in Kerala.
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State Bank of India logo was designed by NID in 1971
National Institute of Design, Ahmedabad designed the SBI logo in 1971.
There was, even before it actually happened, a proposal to merge all the associate banks into SBI
to create a single very large bank and streamline operations.
The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra
merged with SBI, reducing the number of associate state banks from seven to six. On 19 June
2009, the SBI board approved the absorption of State Bank of Indore, in which SBI held 98.3%.
(Individuals who held the shares prior to its takeover by the government held the balance of
1.7%.)
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets approached ₹10 trillion. The total
assets of SBI and the State Bank of Indore were ₹9,981,190 million as of March 2009. The
process of merging of State Bank of Indore was completed by April 2010, and the SBI Indore
branches started functioning as SBI branches on 26 August 2010.
On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed

Chairperson of the bank. Mrs. Bhattacharya received an extension of two years of service to
merge into SBI the five remaining associate banks.
Administrative Offices and Branches
SBI provides a range of banking products through its network of branches in India and overseas,
including products aimed at non-resident Indians (NRIs). With respect to domestic banking
business, SBI has 17 regional hubs known as local head offices (LHOs), under whom are 57
administrative offices (AOs), that are located at important cities throughout India, under whom
are further more administrative sub-offices known as regional business offices (RBOs), with
each RBO having, under its direct administrative control, some 40 - 50 branches.
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Domestic
Samriddhi Bhavan, Kolkata
SBI has over 24,000 branches in India.[24] In the financial year 2012–13, its revenue was ₹2.005
trillion (US$25 billion), out of which domestic operations contributed to 95.35% of revenue.
Similarly, domestic operations contributed to 88.37% of total profits for the same financial year.
Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government in
August 2014, SBI held 11,300 camps and opened over 3 million accounts by September, which
included 2.1 million accounts in rural areas and 1.57 million accounts in urban areas.
International
As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the largest
presence in foreign markets among Indian banks.
 SBI Australia
 SBI Bangladesh
 SBI Bahrain
 SBI Botswana The SBI Botswana subsidiary was registered on the 27th January 2006
and was issued a banking licence by the Bank of Botswana on the 29th July 2013. The
subsidiary handed over its banking licence and closed its operations in the country.
 SBI Canada Bank was incorporated in 1982 as a subsidiary of the State Bank of India.
SBI Canada Bank is a Schedule II Canadian Bank listed under the Bank Act and is a
member of Canada Deposit Insurance Corporation.
 SBI China
 SBI (Mauritius) Ltd SBI established an offshore bank in 1989, State Bank of India
International (Mauritius) Ltd. This then amalgamated with The Indian Ocean
International Bank (which had been doing retail banking in Mauritius since 1979) to form
SBI (Mauritius) Ltd. Today, SBI (Mauritius) Ltd has 14 branches – 13 retail branches and
1 global business branch at Ebene in Mauritius.
 Nepal SBI Bank Limited
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Listings and shareholding
As on 31 March 2017, Government of India held around 61.23% equity shares in SBI. The Life
Insurance Corporation of India, itself state-owned, is the largest non-promoter shareholder in the
company with 8.82% shareholding.
Shareholders Shareholding
Promoters: Government of India 56.92%
FIIs/GDRs/OCBs/NRIs 10.94%
Banks & Insurance Companies 10.63%
Mutual Funds & UTI 13.72%
Others 07.79%
Total 100.0%
The equity shares of SBI are listed on the Bombay Stock Exchange, where it is a constituent of
the BSE SENSEX index, and the National Stock Exchange of India, where it is a constituent of
the CNX Nifty. Its Global Depository Receipts (GDRs) are listed on the London Stock
Exchange.
Employees
State Bank Institute of Credit and Risk Management, Gurugram
SBI is one of the largest employers in the world with 245,652 employees as on 31 March 2021.
Out of the total workforce, the representation of women employees is nearly 26%. The
percentage of Officers, Associates and Subordinate staffs was 44.28%, 41.03% and 14.69%
respectively on the same date. Each employee contributed a net profit of ₹828,350 (US$10,000)
during FY 2020–21
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SBI Agriculture Loan
State Bank of India has been a pioneer and a market leader in agriculture-financing in India with
portfolio of over Rs.1,20,000 crore in agricultural advances that covers more than 1.1 lakh
farmers and their families. SBI caters to the agriculturists and farmers needs and has a vast
network of 10,505 urban and rural branches.
Types of Agricultural Loan from SBI

The different types of agricultural loans offered by SBI are listed below:
1).Crop Loan
This loan covers the expenses related to crop production, post-harvest activities, contingencies,
etc. Borrowers are provided a Kisan Credit Card, a type of electronic Rupay Card, using which
they can withdraw money from ATMs with ease. These cards can also be used for purchasing
fertilizers for the farm.
Key Features and Benefits of the Kisan Credit Card (KCC) Scheme:
 The credit balance in the KCC account gets interest at the savings bank rate.
 State Bank Kisan Card is a free ATM cum debit card that is available to all KCC borrowers.
 For a loan amount up to Rs.3 lakh, interest subvention at 2% p.a. is given.
 If the borrower makes timely repayments, he/she gets additional interest subvention at 3% p.a.
 For all KCC loans, specific areas or crops are offered crop insurance.
 In the case of non-repayment before the due date, the interest will be at the card rate. For non-
repayment after the due date, interest is compounded half-yearly.
Interest
7% p.a. (simple interest)*
Rate
Loan For 1st year - Based on cultivation cost, farm maintenance expenses, and post-
Amount harvest expenses After that, 5-year loan is sanctioned based on the scale of finance
Repayment Fixed, based on the harvesting and marketing period of crops
 For KCC limit of up to Rs.1 lakh - Nil
Collateral  Sanctioned KCC limit is considered when fixing collateral requirement
*This will be charged for 1 year or the repayment due date, whichever is earlier.
Eligibility for KCC Scheme:
 All farmers and joint cultivators

 Tenant farmers, share croppers, and oral lessees
 Joint liability groups and self-help groups, including tenant farmers
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Documents Required:
 Application form (filled accurately)

 ID proof - PAN Card, Voter ID, Aadhaar Card, Passport, or Driving License
 Address proof - Voter ID, Aadhaar Card, Passport, or Driving License
2. Gold Loan
Individuals can get loans for agricultural purposes by pledging gold ornaments. These loans have
attractive interest rates and are disbursed almost immediately. All farming activities can be
covered through these loans. The two types of gold loans available to farmers are the Agri Gold
Loan for Crop Production and Multi-Purpose Gold Loan.
Agri Gold Loan for Crop Production
Key Features and Benefits:
 These loans can be availed by pledging gold ornaments.

 The entire loan process is easy and convenient.
 The loan is provided at 10,000 SBI bank branches.
Interest
Up to Rs.3 lakh - 7% p.a. More than Rs.3 lakh - 9.95% p.a.
Rate
Margin As per the Loan To Value Ratio fixed by the bank
For Demand Loan - 12 months after loan disbursal For Overdraft/Cash Credit -
Repayment
Limit is reviewed annually and is valid for 3 years
Collateral Pledge of gold ornaments
Eligibility for Agri Gold Loan for Crop Production:
All farmers doing short-term crop production are eligible for the loan.
Interest Subvention:
 For interest subvention, the borrower should be engaged in agricultural activities.

 The loan amount is fixed depending upon the Scale of Finance (SOF) of the grown crop and the
acreage.
 After the interest subvention period, the outstanding amount will be charged interest at the rate of
9.95% p.a.
Documents Required:
 Application form, duly filled

 2 passport size photos of the borrower
 Proof of agricultural crops or land
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Multi-Purpose Gold Loan
 Low interest rates.

 The loan process is easy and convenient.
 There are no hidden charges.
 The repayment schedules are flexible.
 Loans are available at all semi urban and rural bank branches.
Interest Rate 9.95% p.a.

Margin As per the Loan To Value Ratio fixed by the bank
Repayment For Demand Loan - 12 months after loan disbursal For Overdraft/Cash Credit -
Tenure Limit is reviewed annually and is valid for 3 years
Collateral Pledge of gold ornaments
Documents Required:

 Proof of agricultural crops or land
3. Farm Mechanization Loan
These loans are offered for purchasing power tillers, tractors, combine harvesters, etc. An
individual can also avail this loan without any collateral. The different types of farm
mechanization loans are detailed below:
Tractor Loan
This includes four types of loan schemes:
 SSTL (Mortgage free)
 The Stree Shakti Tractor Loan scheme has a low interest rate and is a mortgage-free loan.
 The loan will be sanctioned within 3 days.
 There is a monthly repayment option.
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 25% for a tractor, based on the original invoice
Margin  50% for tractor accessories
Repayment Tenure 36 months, with a moratorium period of 1 month

Prepayment Penalty Nil
Processing Fee 1.25%
Part Payment Fee Nil
Duplicate No Due Certificate Charge Nil
Late Payment Fee 1% p.a. on unpaid amount
Failed EMI Charge Rs.562 per EMI
Eligibility Criteria:
 The borrower or co-borrowers should only be women.

 There should be at least 2 acres of agricultural land in the name of the applicant.
 The annual income of the borrower should be at least Rs.1.5 lakh.
Documents Required:
Pre-sanction documents:

 ID proof - PAN Card, Voter ID, Aadhaar Card, or Passport
 Address Proof - Voter ID, Aadhaar Card, or Passport
 Documented proof of land
 Income proof - Certificate from the revenue authority
 Quotation of the tractor that the dealer issues to the customer
Pre-disbursement documents:
 Loan documents
 6 post-dated cheques
Post-disbursement documents:
 RC book of the tractor with hypothecation charges that are in favour of the State Bank of India
 Original invoice of the tractor

 Comprehensive insurance policy for the vehicle
 SSTL with Liquid Collateral
27 | P a g e
 This is a tractor loan taken against a collateral.

 The loan has a low interest rate.
 The loan will be sanctioned within 3 days.
 There is a monthly repayment option.

Margin 10%
Repayment Tenure 48 months with 1-month moratorium period
Collateral Time deposit with the bank, gold ornaments, NSC, etc.*
Processing Fee 1.25%
Duplicate No Due Certificate Nil
Late Payment Penalty 1% p.a. on the unpaid amount
*This can be up to a minimum of 30% of the loan amount
 The borrower or co-borrowers should only be women.

 The annual income of the borrower should be at least Rs.1.5 lakh.
Documents Required:

 Income proof - Certificate from the revenue authority
 Loan documents
 6 post-dated cheques
 Liquid security pledge
28 | P a g e
 New Tractor Loan Scheme
 This loan can be taken for the purchase of a tractor and its implements, accessories, insurance,
and registration.
 There is no upper limit on the quantum of loan.
 The loan processing will be completed within 7 days from the document submission date.
 The repayments can be done monthly, quarterly, or annually.
 In the event of prompt repayment, there will be a concession of 1% p.a. on the interest rate.

15% of the cost of the tractor, accessories,
Margin
insurance, etc.
Repayment Tenure 60 months with 1-month moratorium period
Mortgage of land for a value not less than
Collateral
100% of the loan amount
Processing Fee 0.5%
Penalty for not getting the tractor registered
2% for the default period
within 1 month of delivery
Documents Required: Pre-sanction documents:

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 Title search report from the panel advocate
 Loan documents
 Post-dated cheques
 Original title deeds of the land for mortgage
 Tatkal Tractor Loan
 This is a mortgage-free tractor loan scheme
 The loan turnaround time is just 48 hours.

 The borrower gets free personal accident insurance cover worth Rs.4 lakh.
 The interest rate on this loan is very low.
 There is no processing fee.
 The loan can be repaid in monthly, quarterly, or half-yearly frequencies.

 When margin is 25% - 11.20% p.a.

 When margin is 35% - 10.95% p.a.
Interest Rate  When margin is 50% - 10.55% p.a.
Margin Minimum 25% of the tractor's cost*

 48 months (for installments fixed on net loan)
Repayment Tenure  60 months (for installments fixed on total loan)
Collateral Lien on TDR accepted as margin money

Processing Fee Nil
*This includes registration and insurance charges
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 All farmers (individually or as joint borrowers) who own and cultivate land can apply.
Documents Required:

 Loan documents
 48 or 60 post-dated cheques
b. Combine Harvester Loan

This loan is taken for the purchase of a combine harvester and its accessories. The loan should be
repaid in half-yearly installments. The key features of the loan are as shown below:
Interest Rate 12% p.a.

Margin 15% to 25% of the cost of the combine harvester and its accessories
Repayment Tenure 9 years, including grace period
Collateral Mortgage of land
 All farmers who can operate combine harvesters can apply.

 There should be at least 8 acres of irrigated land in the name of the applicant.
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Documents Required:

 ID proof - PAN Card, Voter ID, Aadhaar Card, Driving License, or Passport
 Address Proof - Voter ID, Aadhaar Card, Driving License, or Passport
 Documented proof of agricultural land
c. Drip Irrigation Loan
This loan is taken to purchase a drip irrigation system. The key features of the loan are as
follows:
Interest Rate 12% p.a.

Margin 15% to 25% of the total cost of the project
Repayment Tenure 5 to 13 years
 Up to Rs.10,000 - Nil
Collateral  More than Rs.10,000 - Mortgage or charge on land
 All farmers who own land and are involved in agricultural activities can apply.
Documents Required:

 Mortgage on land
 Deed of Guarantee
4. Allied Activities
This category consists of three types of agricultural loans:
i. Dairy Loan
This loan is offered to dairy societies for the creation of the following infrastructure:
 Construction of milk house or society office

 Automatic milk collection system purchase
 Transport vehicle purchase
 Bulk chilling unit purchase
32 | P a g e
Dairy Farm Business Loan
The key features of the loan are as shown below:

Margin 15%
Repayment Period 60 months (start-up period is 6 months)
Collateral Guarantee of milk union or mortgage of property
Loan Amount: This is usually 85% of the cost of the project or 4 times the average profit for the
past 2 years (maximum limit is Rs.10 lakh).
The maximum loan limit is also restricted as indicated below:
 If the loan purpose is to set up a milk house or society office - Rs.2 lakh
 If the loan purpose is to purchase an automatic milk collection system - Rs.1 lakh
 If the loan purpose is the purchase of a milk transportation vehicle - Rs.3 lakh
 If the loan purpose is the purchase of a chilling unit - Rs.4 lakh
The loan can be availed by a milk producer co-operative society that is affiliated to the district
milk union. The borrower should also adhere to the following requirements:
 Supplies 1,000 litres of milk per day on an average to the milk union
 Received 'A' grade in the last audit
 Earned profits (pre-tax) in the previous 2 years
Documents Required:

 Undertaking from the milk union for deduction and payment of the installment amount for
repayment
 In case a loan was taken from another bank previously, liquidation and no-dues certificate
 Audited balance sheet for at least two preceding years
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Ii. Poultry Loan
This loan can be availed by farmers for the construction of feed rooms, poultry shed, and other
equipment. The key features of the loan are as detailed below:
Interest
12.10% p.a.
Rate
Margin 25%
Repayment 5 years (in bi-monthly installments)*
Mortgage of the land on which the shed or other infrastructure will be
Collateral
constructed**
*This includes a grace period of 6 months
**This should cover at least 50% of the advance
The loan can be availed by an individual who has experience in poultry farming and has land for
the construction of poultry sheds.
Documents Required:

iii. Fisheries Loan

This loan can be availed for the purchase of fish net, fish seeds, and other related equipment. The
key features of the loan are as detailed in the table below:

Margin 15% to 25% of the total project cost
Repayment Period Maximum 48 months
Collateral For loan up to Rs.1 lakh - Nil For loan above Rs.1 lakh - Land mortgage
All professional fishermen and farmers with knowledge in pisciculture can apply for the loan.
34 | P a g e
Documents Required:

5. Miscellaneous Activities
This category consists of five types of agricultural loans:
a. Produce Marketing Loan

The purpose of this loan is as described below:
 To assist farmers so that they do not sell their products in distress.

 To help in the prompt repayment of crop loans.
 To offer liquidity to farmers for meeting emergency financial needs.
 To offer loan against stocks in farm houses and loan against warehouse receipts.
The key features of the loan are as listed below:
Loan Amount 60% to 80% of the total produce value*

Repayment Within 12 months**
 Loan against goods stored in farmer's godown:
Security
 Loan against Warehouse Receipts (WHR):
*This depends on the place of storage of the produce and is subject to a maximum amount of
Rs.50 lakh
**This depends on the crop and the models of godowns
 All non-defaulter borrowers of SBI who can store the produce in a warehouse or their own farms
 All non-borrower farmers and crop loan borrowers of other banks who can store their produce in
warehouses.
Documents Required:
The endorsed stock statement for the valuation of stocks at a warehouse or the residence of the
borrower is needed.
b. Setting up of Agri Clinic and Agri Business Centres
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This loan provides self-employment opportunities to individuals who are trained in agriculture
extension services. The loan can be availed by applicants engaged in the following activities:
 Water and soil quality testing laboratories

 Diagnostic, post surveillance, and control services
 Repairs, maintenance, and custom-hiring of machinery related to micro irrigation systems

 Agri service centres that work on the three activities listed above (group activities)
 Seed processors
 Micro propagation through plant tissue culture labs
 Construction of bio-fertilizer, vermiculture, and bio-pesticide units
 Construction of apiaries and related processing units
 Provision of agri insurance services
 Consultancy services
 Hatcheries and aquaculture production units
 Livestock health cover provision, construction of veterinary dispensaries/semen banks/liquid
nitrogen supply units
 Construction of information technology kiosks in rural areas for the provision of agriculture
portal access
 Feed processing and testing technology
 Value addition units
 Construction of cool chain from the farm level (group activities)
 Management centres for post-harvest activities like sorting, standardisation, storing, and
packaging
 Constuction of metallic and non-metallic storage units (group activities)
 Retail marketing outlets for agri produce that is processed
 Rural marketing dealership for farm output
The key features of the loan are as listed below:
 In the case of group activities, if a group has more than 5 members, all except one should be
trained agri-graduates under the scheme. The remaining person should be a non agri-graduate
who has experience in business management.
 For loans within Rs.5 lakh, the loan amount provided will be 100% of the cost of the project.
 For loans more than Rs.5 lakh, the loan amount provided will be 85% of the cost of the project.
 The bank offers a composite subsidy of 44% of the project cost for women borrowers, SC/ST
category applicants, and candidates from the North East and hill stations. 36% subsidy is
provided for other categories of applicants. There is no interest charged on the subsidy amount.
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 Individual activities - Rs.20 lakh*
Loan Amount  Group activities - Maximum of Rs.100 lakh
Repayment
5 to 10 years, with grace period of 2 years
Tenure
 Up to Rs.5 lakh - Hypothecation of assets created
 More than Rs.5 lakh - Hypothecation of assets created and mortgage of land or
Security third-party guarantee
Soft Loan The applicant's 50% share of the margin will be provided by NABARD as a
Assistance soft loan. There will be no interest on this amount.
*Rs.25 lakh is provided for projects that have achieved success
 Graduates in agriculture from State and Central universities and institutions recognised by
ICAR/UGC
 Degree-holders in agriculture from other universities are also considered based on the approval
from the Department of Agriculture and Cooperation
 Diploma holders in agriculture subjects from recognised universities
 Biological science graduates with post-graduation degree in agriculture subjects

 Graduates of degree courses that are recognised by UGC with more than 60% content in
agriculture
 Candidates of diploma courses that have more than 60% content in agriculture subjects
 Candidates of agriculture courses at plus two level with a minimum of 55% marks
 Candidates of courses allied to agriculture, i.e., animal husbandry, horticulture, dairy science,
forestry, poultry, pisciculture, etc.
c. Land Purchase Scheme

This loan is offered to small farmers and landless agricultural labourers for the
purchase of land
. Applicants should be existing borrowers who are looking to consolidate land holdings and
develop wastelands.
The key highlights of the loan are as indicated below:
 The loan can be taken for the procurement of irrigation facilities and development of land.
 The loan amount can be used for the purchase of farm equipment and registration purposes.
37 | P a g e
Loan Amount 85% of the cost of the land*
Loan 9 to 10 years from the expiry of the gestation period (half-yearly
Repayment installments)**
Security Mortgage of the land that is being purchased
*Up to a maximum of Rs.5 lakh
** Gestation period can be up to 1 year for land that is developed and 2 years for underdeveloped
land
 Small farmers who own less than 5 acres of unirrigated land

 Marginal farmers who have 2.5 acres of irrigated land
 Landless agricultural labourers
 Applicants should have a great track record of previous loan repayment
 Good borrowers of other banks can also apply if they are ready to liquidate their outstanding
amount to the respective bank
d. SBI Krishak Uthan Yojana

The purpose of this scheme is to offer short-term production and consumption loans to tenant
farmers, oral lessees, and share croppers who do not have land records. These loans help in
increasing their income to a great extent.
The key features of the loan are as follows:
Loan Amount Up to Rs.1 lakh*

Security Nil
Repayment The sale proceeds should be routed through cash credit account
*Out of this amount, the maximum consumption credit is Rs.20,000
 Share croppers, landless labourers, oral lessees, and tenant farmers who have no land records
 Applicants should have a permanent address proof and should have been residing at the current
place for at least 2 years.
 Migratory tillers are not eligible
Documents Required:
 Residence proof
 Identity proof
 Notarized Affidavit in the prescribed format
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e. Scheme for Debt Swapping of Borrowers
The purpose of this loan is to help farmers in paying off debts that are taken from non-
institutional lenders. These loans assist farmers in meeting their crop production needs. The key
features of this loan are as follows:
Loan Amount Up to Rs.1 lakh*

Security Collateral security by mortgage on agriculture property
Repayment Within 3 to 5 years in half-yearly/annual installments
* 100% funding is offered if the loan is for agri activities
All existing borrowers of the bank who are farmers can take this loan. Other farmers in the
operational area of the bank branches can also avail this finance.
Documents Required:
 Notarized Affidavit, stamped and as per the bank format

 A confirmation from the lender on the facts in the Affidavit
6. Agri Debt Waiver/Relief Scheme, 2008

Farmers can receive debt waiver or relief by getting in touch with the bank branch. Further
details of this scheme are available at the RBI websit
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BANK OF BARODA
Corporate Centre, Bandra-Kurla Complex,Mumbai, India
Type Public
Traded as  BSE: 532134
 NSE: BANKBARODA
ISIN INE028A01039
Industry Banking
Financial services
Predecessor  Vijaya Bank
 Dena Bank
Founded 20 July 1908; 114 years ago

Founder Sayajirao Gaekwad III
Headquarters Vadodara, Gujarat
,
India
Number of locations 8,546 Branches
10,033 ATMs (March 2023)
Area served India & Worldwide
Key people  Hasmukh Adhia
(Chairman)
 Sanjiv Chadha
40 | P a g e
(MD & CEO)
Services  Asset management

 Commercial banking
 Financial services
 Investment banking
 Mortgage loans
 Private banking
 Private equity
 Retail banking
 Savings
 Securities
 Wealth management
Revenue ₹87,780.20 crore (US$11 billion) (2022)

Operating income ₹10,008 crore (US$1.3 billion) (2022)
Net income ₹7,848.70 crore (US$980 million) (2022)
Total assets ₹1,340,137.10 crore (US$170 billion) (2022)
Total equity ₹91,868 crore (US$12 billion) (2022)
Owner Government of India(63.97%)
Number of employees 79,806 (2022)
Subsidiaries  Bank of Baroda Uganda Limited
 Bank of Baroda Tanzania Limited
 Nainital Bank
 Baroda UP Gramin Bank
Capital ratio 14.99%

Website www.bankofbaroda.in
Bank of Baroda Kisan Credit scheme
41 | P a g e
Bank of Baroda offers the with a line of credit to farmers, providing them with timely financial
support. The Kisan credit card offers complete solutions for all types of credit requirements with
simple documentation procedures and flexible repayment options. The finance offered through
the Baroda Kisan credit card scheme can be used to buy agricultural equipment to facilitate crop
production, maintain farms, as a farm produce marketing loan, for allied agricultural activities, as
a personal loan or as loans for redemption of loans from other lenders, other consumption
requirements, and as investment credit for non-land and land based agricultural activities.
Features and Benefits of a Bank of Baroda Kisan Credit Card.
Loan Quantum:
Bank of Baroda will determine the loan quantum based on the average farm income, security
value and the repaying capability of the farmer.
Line of Credit:
Bank of Baroda approves a line of credit for farmers based on the scale of finance requirement.
This is set as the Baroda Kisan Credit Card limit for a period of five years. Every year, borrowers
can procure loans depending on the scale of finance, without furnishing any new documents.
While availing a loan, the borrower has to ensure that the loan amount falls within the pre-
determined line of credit.
Baroda Kisan Credit Card issue:

Once the borrower has submitted the required documents and the Credit Card limit has been
approved, the Baroda Kisan Credit Card will be given to the farmer. A passbook and a cheque
book will also be given along with the card. The Baroda Kisan Credit Card will be a Baroda
Kisan RuPay Card, which can be used at any ATM across the country for making cash
withdrawals.
Other Benefits:
The interest earned from a savings account can be paid for credit balances on the Kisan card.
Bank of Baroda does not impose any processing charges on loan amounts to up to Rs. 10 lakhs,
got under direct agriculture.
Bank of Baroda does not charge any documentation fees on loans up to Rs. 2 lakhs. Credit got
for over Rs. 2 lakhs to up to Rs. 10 lakhs, will carry 50% of the normal charges.
The borrower can also get personal accident insurance for a value of Rs. 50,000, free of cost.
Repayment:
The line of credit taken will in the form of revolving cash credit and an annual review will be
done by the bank for a period of five years. The investment credit tenure is determined as per the
income got by the farmer, on a quarterly, half-yearly or yearly basis.
Rewards:
If a borrower has an impeccable repayment pattern, uses the BKCC scheme efficiently, improves
the production in his farm along with the income, Bank of Baroda offers various concessions to
these Baroda Kisan Credit Card holders additionally.
The bank would evaluate the consumption credit requirement for the farmer’s family for one
42 | P a g e
year and increase the amount up to a maximum of Rs. 50,000.
The interest rates applied would be lowered for investment loans and production loans within a
range of 0.25% to up to 0.50%. This will completely depend on the borrower and the repayments
done.
Loan Margin:
For short term loans taken up to a credit limit of Rs. 1 lakh, there is no loan margin requirement.
Short term loans taken for over Rs. 10 lakhs, the loan margin required is 15%.
Term loans taken up to a credit limit of Rs. 1 lakh, there is no loan margin requirement. If a term
loan is taken for purchasing heavy agricultural equipment and tractors for an amount above Rs.
10 lakhs, the loan margin required is 10%. If a term loan is taken for an amount above Rs. 10
lakhs to serve other purposes, the loan margin required is 15%.
Small and marginal farmers and agricultural workers have to pay a loan margin of 5% if no
special subsidy is available. If a special development program subsidy is given, then there is no
loan margin requirement.
Security:
For short term loans and crop loans taken for an amount up to Rs. 1 lakh, the hypothecation of
the crops and the D.P Note is required. For short term loans and crop loans taken for an amount
above Rs. 1 lakh, the hypothecation of the crops, land mortgage, third party guarantee and the
D.P Note is required.
Investments loans taken where moveable assets are formed, the hypothecation of the assets to be
bought and the D.P Note up to Rs. 1 lakhs or economic unit cost, whichever is lower is required.
Investment loans taken under this category for over Rs. 1 lakh, require security in the form of
hypothecation of the crops, land mortgage, third party guarantee and the D.P Note.
Investments loans taken where moveable assets are not formed, the land mortgage is needed for
limits over Rs. 10,000.
Loan Tenure:
The term loan taken under the Baroda Kisan Tatkal Loan scheme can be repaid within three to
five years.
Loan Quantum:
The maximum loan amount that can be availed by farmers is up to Rs. 50,000 or up to 50% of
the existing Baroda Kisan Credit Card limit, whichever is lower.
Repayment:
The term loan can be repaid as half-yearly or yearly installments, based on the income generated
by the farmer.
Loan Margin:
For term loans taken up to a credit limit of Rs. 1 lakh, there is no loan margin requirement. If a
term loan is taken for purchasing heavy agricultural equipment and tractors for an amount above
Rs. 10 lakhs, the loan margin required is 10%. If a term loan is taken for an amount above Rs. 10
lakhs to serve other purposes, the loan margin required is 15%.
Small and marginal farmers and agricultural workers have to pay a loan margin of 5% if no
43 | P a g e
special subsidy is available. If a special development program subsidy is given, then there is no
loan margin requirement.
Security:
For short term loans and crop loans taken for an amount up to Rs. 1 lakh, the hypothecation of
the crops and the D.P Note is required. For short term loans and crop loans taken for an amount
above Rs. 1 lakh, the hypothecation of the crops, land mortgage, third party guarantee and the
D.P Note is required.
Investments loans taken where moveable assets are formed, the hypothecation of the assets to be
bought and the D.P Note up to Rs. 1 lakhs or economic unit cost, whichever is lower is required.
Investment loans taken under this category for over Rs. 1 lakh, require security in the form of
hypothecation of the crops, land mortgage, third party guarantee and the D.P Note.
Investments loans taken where moveable assets are not formed, the land mortgage is needed for
limits over Rs. 10,000.
Eligibility Criteria
Baroda Kisan Credit Card

Farmers who have good repayment patterns will qualify for credit limit sanctions for a value of
Rs. 1000 or above. This limit is applicable for new applicants and also for non-banking
customers. Farmers who are literate or illiterate are eligible to apply for the Baroda Kisan credit
card provided they are land owners, permanent tenants, cultivators, lease holders and share
croppers who have cultivated crops for not less than five years.
Baroda Kisan Tatkal Loan Scheme:

Existing Baroda Kisan Credit Card holders/farmers can apply for the Baroda Kisan Tatkal Loan
as a single applicant or as joint applicants. The farmer should hold a very good repayment record
for the last three years.
Check Your Eligibility
Fees and Charges - Kisan Credit Card
Investment Credit/ Production Credit Interest Rates

Fixed interest rate of 7% per annum (Or) Base
Amounts up to Rs. 3 lakhs
Rate = 9.65%.
Amounts over Rs. 3 lakhs and
Base Rate + 1.25% = 10.9%
below Rs. 25 lakhs
Rs. 25 lakhs or above Base Rate + 2.00% = 11.65%
Loan up to Rs. 3 lakhs - As per rates in the agri
For JLGs/ SHGs
priority sector
Loans for Go down construction for storing
9.65% + 0.50% = 10.15%
produce
Loans against warehouse receipts to up to Rs
9.65% + 1.00% = 10.65%
50.00 lakhs
Loans against ware house receipts to non-
9.65% + 2.00% = 11.65%
farmers
44 | P a g e
Investment Credit/ Production Credit Interest Rates
Baroda car loan interest rate minus 0.25%, the
Loans for buying four wheelers
minimum being the base rate.
Farm house construction
As per Bank of Baroda home loan interest rates.
+ dwelling units for farmers
Loans for construction of cold storages for
9.65% + 2.00% = 11.65%
storing agricultural produce
9.65% + 1.00% = 10.65%
Loans for poultry
Other Agricultural Banking products offered by Bank of Baroda

Agri-clinics and Agribusiness Centers by Agriculture Graduates
Agricultural Implements
Construction / Modernisation / Expansion/ Renovation of rural go down
Cultivation of Crops
Dairy/Poultry
Dealers of Agriculture Inputs
Development of Horticulture
Development of land
Farm Produce Marketing Loan
Financing Agencies Providing Custom Services to Farmers
Financing Construction of Farm Building and Structures
Financing Scheduled Tribes/ Scheduled Caste
Financing Second Hand Tractors
Irrigation Potential
Providing Employment to Unemployed Technical Personnel via Agro Service Centers
Scheme for Construction of Sanitation Facilities in Rural Areas
Scheme for Loan against Jeweler / Gold Ornaments
Scheme for buying Agricultural land
Tractors and Heavy Agricultural Machinery
Documents Required to Apply for Loan Against

Agricultural Loan
 Duly-filled application form
 One valid identity proof like your PAN card, Aadhaar Card, or Passport
 One valid proof of residence like Aadhaar Card, Passport, or Utility Bills
 Land documents like registration document, taxes paid, and utility bills
 No due certificate from Co-operative Credit Society (If required)
 Copy of the land sale agreement
 Last six months bank statement (If required)
 Passport size photograph of the applicant and co-applicant
45 | P a g e
Fees and Charges for Loan Against Agricultural Loan
There are many fees and charges that will be charged on your Agri Loan. Some of the most
popular ones are:
 A Processing Fee of 0.50% of the loan amount or Rs.3,000 whichever is higher is usually
charged. However, this charge differs from one bank to another. During the festive season, many
banks waive the processing fees to encourage borrowers to take loans.
 Prepayment Charges
 Conversion Fees
 Cheque Dishonor Charges
 Property Insurance Charges
 Incidental Charges
 Statutory and Regulatory Charges
 Foreclosure Charges
 Late Payment Penalty
 Stamp Duty
 Legal Fees
 Valuation of the Property Fees
 Inspection Charges
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OBJECTIVE OF STUDY
47 | P a g e
Objectives of the Study:-
The study is undertaken with the following objectives.
 To know the history and growth of agriculture sector in India.
 To study the organizational profile of State Bank of India & Bank of Baroda.
 To study the various products & services offered by the bank.
 To know the various aspects of agricultural finance.
 To find out the feedback from the farmers who have borrowed from State Bank of India
& Bank of Baroda.
 To analyze & interpret the data collected.
 To give recommendation & suggestion if necessary.
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SCOPE OF THE STUDY
49 | P a g e
SCOPE OF THE STUDY-
 The Scope Of The Study Is Confined To Nagpur City.

 The scope of the study is limited in time & money constraint.
 Sample size 100 respondent
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RESEARCH METHODOLOGY
51 | P a g e
Research Methodology
Research methodology is an important part of every project because it helps in knowing how to
select the representative sample from the world or the general population. The right research
tools and techniques to complete the research. The study of the consumer behavior is important
because he is the king. The research process is based upon survey method, so in order we go to
service provider and services user which is the customers.
The research involves the following steps;

Define the problem:
The problem and objective is to assess the services offered by the various service providers and
what the customers wants.
Customers are satisfying or not this service.
What should be changes in facilities or any addition?
Developing the research plan:
The second stage of the research methodology is to develop a research plan.

The research plan designed to take the decision on the data sources, researchapproaches, research
instruments, sampling plan and contact methods.
Research Instruments:-
The use of an effective research instrument is very important because through this instrument we
collect data in this project through observations andpersonal interview were conducted.
Personal interview:-
As we were doing direct selling we interacted with my customers and asked about their view in
selecting a service and what are their wants and expectationfrom a service provider.
Method of Data Collection:
Primary Method:
In the primary source, the researcher use the Interview scheduled method 1 for collection of data.
Secondary Method:
The secondary sources or method used as supportive sources to the interview methods used as
supportive sources to the interview method were sources like-
Records
Books
Observation and Research papers
52 | P a g e
Tools of Data Collection:
In the present study, researcher had used the Interview schedule 1 as the primary tool for the data
collection. The researcher also took the help of various literature and dissertation for collection of
data as the secondary method.
(e) Data processing Editing:

It is the first step of the data processing. It is the process of examination and scrutinizing the data
collected by interview schedule and finally to get relevant and correct information which can be
properly coded.
Coding: Coding is the process which helped the researcher to organize the data into classes and
symbols which was further helped the researcher to organize the data into classes and symbols
which was further helpful for tabulating the same.
Master Chart Preparation:
The researcher prepared the master chart and positioned the data from the schedule into master
chart in a coded form, so that collected information could be seen and understood at a glance.
Tabulation:
The researcher tabulated the raw data by displaying it in compact form for further analysis. The
researcher prepared simple Tables.
Analysis and Interpretation:

The researcher after tabulation analyzed and interpreted the data, as the collected data in itself
does not provide and answer to the research problems. Thus it was done in order to provide a
general understanding of the factors collected. It also helped to provide a theoretical conception,
which served as a guide for further research.
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DATA ANALYSIS & INTERPRETATION
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Data Analysis & Interpretation
Occupation of Loan Borrower
What is your the occupation?
Type of occupation No. of customer
Businessmen 27
Employee 42
Former 19
Retired person 12
Total 100
Types Of Occupation
120
100
80
60
40
20
0
Businessmen Employee farmer Retired person Total
No. of customer
55 | P a g e
INTERPRETATION
Question, we know that, in different class of occupation who take more loan inthese
group. in above chart we can see that the employees are 42% means the employees
are more take a loan as compare to other group of like businessmen former and
Retied Person are as 27%, 19% and 12%.
Behavior of Staff Member

What is the behavior of staff members?
Behavior No. of customer
Excellence 23
Good 36
Adequate 17
Average 14
Unsatisfactory 10
Total 100
Behavior
120
100
80
60
40
20
No. of customer
Excellence Good Adequate Average Unsatisfactory Total
56 | P a g e
INTERPRETATION
To use these type of question in research, to know the behavior of staff
member. In these research 36% people are say that the behavior of staff
is good. 23% people are saying that the behaviors of staff are
Excellent.17% people are saying that the behaviors of staff are
Adequate. In these ways the 14% and 10% are those who said that the
behaviors of staff are Average and Unsatisfactory.
Age group of loan borrower.
What is your age?
Age group of customer No. of customer
18-35 year 30
35-60 year 48
60-90 year 22
Total 100
Age Of The Customer

120
100
80
60
40
20
0
No. of customer
18−35 year 35−60 year 60−90 year Total
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INTERPRETATION
In this research on loan and advances, classified the different age group and
knowing that who take a more loan. In above chart we can see that the 48% people
are those who age is 35 to 60. 30% people are those who age is 18 to 35 year and
22% are those who age group is 60 to 90 years.
Income Level of Loan Borrower
What is your the income level per annum? □more than
Income level of customer No. of customer
Up to 2 laces. 23
Between 2 & 5 laces. 44
More than 10 laces. 12
Total 100
Chart Title
120
100
80
60
40
20
0
No. of customer
Up to 2 laces. Between 2 & 5 laces. Between 5 & 10 laces.

More than 10 laces. Total
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INTERPRETATION
In this question, the incomes of borrower are identified. In these, the persons whose
incomes are between 2 to 5 laces are 44% means its take more loans then after whose
income level is up to 2 laces are 23%,the income of between 5 to 10 laces are 21%
and who income is more than 10 laces is 12%.
Income Level of Loan Borrower
What is your the income level per annum?
Income level of customer No. of customer
Up to 2 laces. 23
More than 10 laces. 12
Total 100
Chart Title
120
100
80
60
40
20
0
No. of customer
Up to 2 laces. Between 2 & 5 laces. Between 5 & 10 laces.

More than 10 laces. Total
59 | P a g e
INTERPRETATION
In this question, the incomes of borrower are identified. In these, the

persons whose incomes are between 2 to 5 laces are 44% means its take
more loans then after whose income level is up to 2 laces are 23%,the
income of between 5 to 10 laces are 21% and who income is more than
10 laces is 12%
FINANCIAL PERFORMANCE OF STATE BANK OF INDIA & BANK OF

BARODRA BANK.
Particular SBI BOB
Owned capital 50,00,000 63,53,130
Deposits 3,00,10,000 2,95,22,530
Loan 2,05,30,530 2,30,33,555
Working capital 3,55,40,500 3,95,52,530
45000000
40000000
35000000
30000000
25000000
SBI
20000000 BOB
15000000
10000000
5000000
0
60 | P a g e
own capital deposits loan working capital
Interpretation:- Above mention the financial performance of bank
branch.50,00,000 & 63,53,130 this is the owned capital of bank both
years.3,00,10,000 & 2,95,22,530 this is amount of accepted deposit in
both two Bank respectly.3,55,40,500 & 3,95,52,530 this working
capital for handling day today risk.
AGRICULTURE LOAN
Short term and Long term Loan
Period Particulars SBI BOB

Short term Crop Loan 95,00,000 1,70,00,000
Long term Agriculture 3,37,30,000 5,55,00,910

Equipment development
80000000
70000000
60000000
50000000
40000000 long term

short term
30000000
20000000
10000000
0
SBI BOB
61 | P a g e
Interpretation: - the above graph shows that crop loan and equipment,
agriculture development loan increase by30.22% and28.36 %
respectively in both Banks.
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OBSERVATION
OBSERVATION: -
 Agriculture output depends upon the monsoon, weather, & other natural factors type of
land, fertilizer used.
 Agriculture is not a single homogeneous industry but complex of different industries.
 The size of the farm is very important from the Farmers point of view.
 Bank Generally prefer to lend to a big farmers than small farmers.
 In rural areas there is no electricity, farmers can not avail of the credit made available to
them purchase of the electrically operating pump sets & other farm machinery.
 Operation of agriculture credit or banking becomes extremely difficult in such
unapproachable places due lack of communication.
 The problem of overdue becomes very common in agriculture loan due to problems like
63 | P a g e
natural calamities, wrong utilization of fund, defective lending policies, lack of
inadequateness market facilities & infrastructure
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FINDING
FINDINGS
 The need for agriculture fiancé remains stable & steady, depending more on nature of
agriculture operation rather than the volume of output
 The farmer gives his land as security against loan but land is an asset which cannot easily
converted into cash & hence it is an unsuitable from of security for commercial banking.
 Inadequacy of farm income & excessive expense for unproductive purpose create
situation to borrow more & more. This situation compels him to dispose of his crops at a
wrong time, wrong place & at wrong price & thus adversely affects his repaying capacity.
 The entire needs of farmers for farm input & credit including consumption have to be
met. Otherwise the credit advanced is likely to be diverted to non-productive purposes.
 At present there is no suitable infrastructure to assimilate any credit made available to the
farming community. in the absence of which it is likely to be diverted to non- productive
expenditure which results in inflation
65 | P a g e
 For the banks in rural area, it is difficult to get the repayment of loans unless they are
very watchful &vigilant.
 While formulating agriculture schemes it is necessary to see their financial soundness,
economical and technical feasibility.
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SUGGESTION
SUGGESTION
1. Bank officers also have to increase the contacts with farmers. Encourage the people
by conducting seminars some programmers related to the agricultural schemes how it
is useful inremote areas. So it creates awareness in the farmers.
2.Bank have to focus on enhancing the quality of the some new schemes related to the
farm development, equipment, plantation and farm mechanization which are helpful to
fostering the agriculture production which are more important for the development of
Indian economy.
3.Bank have so take some efforts to create awareness about different financial product by
taking some programmers and bank officers have play proactive role in aggressive
marketing of short term and investment credit to potential borrowers.
4. People of young age group who are risk takes by nature may be targeted separately. At
present era they are taking the decision related each and activity in the family. So the bank
officers haveto target the youngster’s age group.
67 | P a g e
5.Some farmers are capable to repay the loan but the intentionally avoid repaying the loan.
In which the government & bank recovery policy should tighten-up. After recovery of the
funds canutilized for various purposes.
6.Because of overlapping of credit result in financial indiscipline both parts of lenders &
borrowers. There is strictly restricted to farmers to borrowing loan from more than one
agency.
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CONCLUTION
Conclusion: -
1. After the completion of three months Summer Internship on A study on Agriculture loan
as afinancial product & Farmer’s feedback at State Bank of India & Bank of Baroda. I can
say that the study of Agriculture loan is very interesting and is very important subject for
the country since development and empowerment of human capital and resource is in the
National interest.
2. The procedure involved in loan appraisal at State Bank Of India & Bank Of Baroda
bank is very fast process for agriculture equipment; it requires a lot of documentation
process.
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70 | P a g e
BIBLIOGRAPHY
Bibliography
Newspaper:-
 The times of India
 The economic times
 The business standards
Website:-
 www.sbi.in
 www.bankofbraodra.in
 www.rbi.in
BOOKS:-
 Banks & institution of India books
 Broachers of banks
71 | P a g e
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QUESTIONNAIRE
QUESTIONNAIRE
1. What is your the occupation?
□Business man
□Employee
□Profession
□Retired person
2. What is your age?
□18 to 35 year
□35 to 60 year
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□60 to 90 year
3. What is the behavior of staff members? □Excellence
□Good
□Adequate
□Average
□Unsatisfactory
4. Which is another bank from you borrowed other loans?
□SBI
□ICICI
□HDFC
□AXIS
□BOB
5. What is your education qualification?
□Up to HSC
□Up to Graduation
□Up to Post Graduation
□More than post-graduation
6. What is your maximum extent to take loans?
□Less than 100000

□between 100000 & 500000
□Between 500000 & 1000000
74 | P a g e
□More than 1000000
Que.7) Types of agriculture loan.?
Que.8) The eligibility criteria for availing agriculture loan.
Que.9) What documents are required for agriculture loan.?
Que.10) yearly the amount of loan targeted as agriculture loan?
Que.11) Interest rate on agriculture loan.?
Que.12) Do you get any benefit or support from government for providing
agriculture loan.?
Que.13) What is agriculture loan subsidy.?
75 | P a g e

Sonali Bondre

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A

RASHTRASANT TUKADOJI MAHARAJ NAGPUR

IN PRATIAL FULFILLMENT OF THE REQUIREMENTS OF

UNDER THE GUIDENCE OF

DR. SANJAY CHOURE

DEPARTMENT OF BUSINESS MANAGEMENT REVNATH CHOURE

This is to certify that it is a bonfire record of project work entitled

“A COMPARATIVE STUDY OF AGRICULTURAL LOAN FROM

Date:- Dr. Sanjay Choure

I hereby declare that the dissertation entitled “A COMPRATIVE STUDY OF

Place: - Saoner Sonali Bondare

My foremost thanks to MR. SANJAY CHOURE (DIRECTOR) Revnath

1. Executive Summary 7-9

With a view to provide an institutional mechanism for sharing of information on borrowers /

Reforms in the Banking sector

Banking System in India

Reserve bank of India (Controlling Authority)

Development Financial institutions Banks

IFCI IDBI ICICI NABARD NHB IRBI EXIM Bank SIDBI

Commercial Regional Rural Land Development Cooperative

Banks Banks Banks Banks

Public Sector Banks Private Sector Banks

RESERVE BANK OF INDIA & AGRICULTURE FINANCE

Agriculture development is regarded as a prerequisite of economic development of the country.

 Product contribution – making available food & raw materials.

Funds for Agricultural Development

 Financial Assistance to Co-operative Sector

ii) To maintain continued relationship with our existing borrowers by

vii) To promote growth of industries including small artisans, services and

viii) In pursuit of achieving national objectives like better education and

ix) The process of submission of applications for loans, sanction,

x) Rehabilitation package for Tsunami victims.

The various innovative schemes/card products are:

 Star Composite Cash Credit (CCC):

 Kinas Credit Card (KCC)

 Kisan Gold Card (KGC)

 Star Kisan Samadhan Card (KSC)

 Star Bhoomiheen Kisan Card (BKC);

State Bank Bhavan, Nariman Point, Mumbai

Revenue ₹406,973 crore (US$51 billion) (2022)

Capital ratio Tier 1 11.03% (2022)

Stamp dedicated to the State Bank of India in 2005

Share of the Bank of Bengal, issued 13 May 1876

National Institute of Design, Ahmedabad designed the SBI logo in 1971.

On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed

Administrative Offices and Branches

Samriddhi Bhavan, Kolkata

State Bank Institute of Credit and Risk Management, Gurugram

Types of Agricultural Loan from SBI

Eligibility for KCC Scheme:

 All farmers and joint cultivators

 Application form (filled accurately)

Agri Gold Loan for Crop Production

Key Features and Benefits:

 These loans can be availed by pledging gold ornaments.

Eligibility for Agri Gold Loan for Crop Production:

 For interest subvention, the borrower should be engaged in agricultural activities.

 Application form, duly filled

Key Features and Benefits:

 Low interest rates.

Interest Rate 9.95% p.a.

 Application form, duly filled