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Project Report on Banking System, Introduction of Banking, Commercial Banks, Banking in India, Banking environment in india, India Banking, SBI Bank, SBI Banking, SBI Card, Business Card, SBI Credit Card, Loan Scheme, Loan Repayment, Interest Rate of Banks, Security, ATM of State Bank of India, Use of ATM Card, SBI Regulations
The market place began to change for banks in India as a result of reforms of the financial sectors initiated in the current decade. On account of policy measures introduce to infuse greater competitive vitality in the system, the banking has entered in to a competitive phase. Competition has emerged not only from within the banking system but also from non-banking institutions. Lowering of entry barriers, deregulation of interest rates and growing sophistication of customers have made banking far less oligopolistic today. Introduction of capital adequacy and other prudential norms, freedom granted to enter into new turfs and greater overlap of functions between banks and non-banks have forced banks to get out of their cozy little world and think of the future of the banking.
SBI Segment : Small business credit card (SBI credit card) Preamble : Small business units, retail traders, artisans, village industries, small-scale industrial units and tiny units, professionals and self employed persons etc., contribute significantly to the growth of our economy. The entrepreneur himself manages many of the units. Very often, these entrepreneurs complain of procedural delay in sanctions and renewal of limits. They also find it difficult to cope with the demands for audited balance sheet and other statements sought by the bank from time to time for availing credit facilities. With a view to providing hassle free financial supports to the above categories of entrepreneurs who have shown commitment to run the unit successfully and who are dealing with the banks for last two years satisfactorily, new and friendly credit product namely small business credit card scheme is designed. Under the scheme, cumbersome procedural aspects relating to reviews and renewals, submission of balance sheet, stock statements and other statements are done with credit delivery made simple and easy. Purpose : To meet the credit requirements of small business units, industrial unit, retail trader, artisan, Small Scale Industry (SSI) and tiny units. Eligibility : A. Customers of the following segments with a satisfactory track record for the last two years enjoying credit facilities.
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Small industrial units (SSI and tiny units including artisans) Small retail traders (Under SBF) Professional and self employed persons Small business enterprise
B. Units who do not enjoy credit limit with us/other banks at present with excellent performance and credential may be considered. Quantum of loan : Loan up to Rs. 5 Lakh can be sanctioned to eligible persons. Assessment : The small business credit card limit can be fixed as follows :
y
For small business, retail trader etc. 20% of the annual turnover declared for tax purpose or last twelve months turnover in the operative accounts, whichever is higher.
In respect of parties with good track record, where sales tax returns are not available, the credit limits may be decided taking into consideration the actual turnover in the accounts during the last two years.
y y
For professionals and self employed persons, 50% of their gross annual income as per IT return shall be considered as the limit for issuing the SBI credit card. For small scale industrial units, tiny sector units the assessment norms in vogue as per the Nayak Committee recommendations would continue.
Validity :
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Credit card limit will be valid for a period of three years, subject to satisfactory conduct of the accounts. Annual review will be done based on conduct/operations of the A/cs. A major portion of the sales turnover should have been routed through the accounts as revealed by the credit summations.
Repayment :
y
y y
The working capital advance may be continued subject to that review every year provided the credit summations in the account is not less than 50% of the projected sales turnover. If the credit summations is less than 50% of projected sales turnover. The outstanding as on the due date of review should be made repayable in suitable monthly installments. The term loan is repayable in suitable installments with in a maximum period of five years. In case of composite loans, only the term loan is repayable in installments up to a maximum period of five years.
Interest rate : As per extent instructions issued from time to time relating the market segment. Refinance : No refinance is to be claim from SIDBI Security : Primary : Hypothecation of the stock in trade receivables, machinery, office equipment. Collateral : Under SSI-No collateral security as per existing guidelines of RBI. User SBF :
y y
Up to Rs. 25000/- No collateral security. Over Rs. 25000/- charge over movable/immovable property or third party granted.
However, in case of the excellent track record, sanctioning authority may waive collateral requirement. Margins : Up to Rs. 25000/- - NIL Rs. 25001/- to Rs. 5,00,000/- - 20% Documentation : Documents as per extant instructions. Credit Card - A Convenient Banking Product : The credit card is a hassle free convenient banking product aimed at simplifying the credit delivery mechanism. Cumbersome procedural aspects relating to reviews and renewals, submission of stock statement, balance sheet and other statements are done away with. The credit limit will be worked as detail above. Small business credit card
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Card No. Name Account No. Tel. No. Limit Rs. Date of issue Valid upto .. (Branch Code) Card holders Photograph with signature
The borrower would be issued a photo card indicating sanctioned limit and validity of the limit (sample card) Insurance :
y y
Fixed assets/stock pledged/hypothecated to the bank be fully insured at least to the extent of the bank interests. Bank may waive insurance of assets for equipment against the fire and other risk up to Rs.25000/-
Cover under credit guarantee scheme : All eligible loan accounts sanctioned for small scale industries (other than services) would qualify for cover under CGTFSI scheme (presently the scheme has been introduce in five circles on pilot basis viz. New Delhi, Chandigarh, Lucknow, Patna & Hydrabad). Operation :
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Small business credit card accounts should be maintained in a separate ledger. Cheque book should be issued and marked as small business credit card account. Pass book should be issued for mall business credit card holders. Stock statement waived. Submission of audited balance sheet waived. Borrower would be issued a small business credit card with photograph thereon. Cost of photograph to be borne by banks. IRAC norms would be applicable. Brief opinion report should be recorded. Marked inquiries should be made and recorded in the opinion report and singed by the field officer/cash officer or officers not below that rank. Units within a radius of 5 kilometers may be covered intensively for the issue of credit card. This condition may be waived for such of those units already in the book of the branch.
Inspections :
y
Sanction :
y y
Required loan may be sanctioned with in a week after receipt of detailed information. Control return after sanction may be sent to next higher authority for approval .
Scoring Model :
y
Loan would be sanctioned up to Rs. 5,00,000/- based on the simplified scoring model as given in annexure- II. Those who are scoring less than 60% would not qualify for the loan.
Rationale :
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An ATM (Automatic Teller Machine) card is useful to a card holder as it helps him to withdraw cash from banks even when they are closed. This can be done by inserting the card in the ATM installed at various banks locations. State Bank Cash Plus CARD
y y
y y y
State Bank Cash Plus Card having the 19 digit. Name of the card holders mention there on it. In case of State Bank Cash Plus Card, there is no expiry period but for the old card, the date after which your card needs to be renewed is the last day of the month indicated on your card. Signature panel on which you must sign as soon as youre your card. It identifies the card as your State Bank Card Plus Card. The magnetic stripe, which contains encoded information. ATM card possess pincode which having the 4 digit.
We uses our State Bank Cash Plus Card for cash withdrawal from ATMs. We uses it for making the payments for purchase made at the merchant establishments.
restrictions scholar could seek advice from only the limited literature, which is available with the bank. As the concept is completely under the control of various banks and RBI. So the information is directly taken from these sources.
Conceptualization
As the concept includes two terms i.e. cash credit or working capital loans and terms loans. Therefore both the terms are taken into consideration in the proposed study. Due to the privatization of banking sector many big private players entered in this sector giving a tough competition to the existing players. So, to face this stiff competition all the public sector banks have to review their functioning. These aspects will be given importance in this project report. The concept of SBI card, question crops in mind what is a SBI card, What is its shape and size, what is its function. A SBI card is nothing but a identity card containing card holders photographs with signature, card no. Name, A/c No. limit, validity period, branch code with signature of Branch Manager.
To compare the credit schemes of different banks. To find out main obstacles while getting finance under various credit schemes.
Taking Sample has carried out the study. Therefore, all the limitations associated with sampling.
Sometimes the respondent does not want to disclose some relevant information.
CHAPTERISATION
The Chapterisation of the project report is as following :
Chapter 1 : I have discussed about the relevance and importance about the project. I have explained the topic with ATM facilities. Why this study is required? What are the limitations? What are the objectives and what are the steps I have adopted for doing this project. Chapter 2 : This study consists of the whole research methodology about the project. It means what are the steps have been taken for doing this study. How much the sample size and what are the variables? So this study consist the complete research methodology. In this chapter the profile of organisation has been also covered.
Chapter 3 : It consists the detail descriptions about the raw data. Here the complete analysis of the data, which is collected from the primary sources. For tabulation the data is converted into the percentage and after that it is tabulated. On the basis of this data the graph are inserted. At last the conclusion is drawn on the basis of this data. Chapter 4 : It consists the appendices part of the project report in this part I have mentioned the names of all those books, magazines, journals and web-sites from where I have collected the material comes under the head of bibliography. It also consists the questionnaire, which is used for collecting the data.
Research Design
A research design is simply a plan for study in collection and analyzing the data. It helps the researcher to conduct the study and ensure that economical procedures are employed and probing is relevant to the problem. Depending upon the objective of the study there is threeresearch design available : . Exploratory Research
Data Collection : There are two sorts of data available : 1. Primary Data :
Primary Data are those data which are collected to solve a problem or take advantage of any opportunity on which a decision is depending. These data are basically observe and recorded by the researcher for the first time used primary data for my project work. 2. Secondary Data :
Secondary data are those data which are primarily collected by other person for his own purpose. Methods of Data Collection : Observation Method Questionnaire Method
Identified Independent and Dependent variables : Independent variables : All the external factors are independent variables : Govt. policy of RBI Environmental factors
Dependent variables : All the internal factors of organization are dependent variables : Company policy InfrastructureTable No. 1
Most of the respondent are well awared about the credit facilities of different Banks
Table No. 2
Nearly 40% of the Respondents are availing credit facilities from SBI followed by PNB.
Table No. 4 Time since customers are availing credit facilities More than 3 10 2 to 3 16 1 to 2 14 Less than One 04
Most of the respondents are availing the credit facilities ranging from 1 to 3 years.
Table No. 6 Awareness level about various credit facilities of different banks SBI 42 PNB 40 IOB 22 UCO 14 CANARA 12 OBC 08
The credit facilities of SBI and PNB are well known to every respondent.
Table No. 7 (a) Ranking of banks on the basis of interest rate SBI 30 PNB 27 IOB 08 UCO 13 CANARA 08 OBC 14
SBI and PNB are the most preferred banks in regard of interest rates.
Table No. 7 (b) Ranking of banks on the basis of collateral security requirement SBI 26 PNB 30 IOB 16 UCO 10 CANARA 06 OBC 12
Respondents are very much satisfied with SBI and PNB in respect of collateral security requirement.
Table No. 7 (c) Ranking of banks on the basis of attitude of the employees SBI 28 PNB 27 IOB 20 UCO 8 CANARA 10 OBC 07
Respondents appreciate the attitude of employees of the SBI, PNB and IOB.
Table No. 7 (d) Ranking of banks on the basis of services SBI 26 PNB 32 IOB 26 UCO 06 CANARA 06 OBC 04
Respondents appreciate the level of services provided by SBI, PNB and IOB. Table No. 7 (e) Ranking of banks on the basis of documents required SBI 28 PNB 24 IOB 18 UCO 12 CANARA 08 OBC 10
Customers are happy with the document requirement of SBI and PNB.
Table No. 7 (f) Ranking of banks on the basis of renewal process SBI 38 PNB 22 IOB 16 UCO 08 CANARA 08 OBC 08
Customers are very much satisfied with the renewal process of SBI and tanks to SBI card. Table No. 8 Main obstacle while getting finance (a) Security (b) Document Requirements 24 08 (c) Red Tapisam 04 (d) Guarantee requirement 08 06 (e) Attidute of Bank Employees
Security requirements are the main obstacle while availing any credit facility. Table No. 9 Preference order of different parameters (a) Interest Rate 42 (b) Collateral Security 12 (c) (d) (e) Services (f) Document requirement 14 Validity
16
08
Customer prefer low interest rates followed by services. Table No. 10 Preference level of banks SBI 56 PNB 24 IOB 10 UCO 04 CANARA 04 OBC 02
More than half of the respondents prefer SBI followed by PNB. Table No. 11 Awareness level of SBI Card Yes 38 No 12
Table No. 12 Sources of information about SBI card Friends 22 Bank Employees 04 Advertisement 06 Publicity 06
Most of the respondents gets information about SBI card from bank employees.
Objective No. 1 :To find out the Market Potential of SBI card. Most of the respondents covered in the survey know about the SBI card and feel that this facility is beneficial to them as they can fix the limit for three years. Respondents even require further guidance related to few things. Customers feel very enthusiastic about the launch of SBI card in Bhiwani and very sure about its success. Most of the respondents want an increase in existing limit i.e. 5.00 lacs.
Objective No. 2 : To know customer s perceptions about various credit schemes of different banks. Most of the respondents like the credit facilities provided by SBI and PNB. According to most of respondents, PNB is the fastest service provider. It takes only 15 days to disburse the sanctioned loans whereas other banks including SBI takes 40 to 45 days.
PNB is offering the lowest PLR i.e. 11.25% whereas other banks are offering 11.5%.
Objective No. 3 : To find out main obstacle while getting finance under various credit schemes. According to most of respondents, security and document requirement are the main obstacles while getting finance under various credit schemes.
Suggestions
On the basis of data analysis and interpretations, the following suggestions can be made. RBI Should reduce the SLR and CRR to increase the credit creation capacity of the banks.
All the nationalized banks should try to improve their service level to face the stiff competition given by private banks..
Banks should reduce the time length between sanction and disbursement of loan. SBI should increase the limit under SBI card to fulfill the growing requirement of the customers.
Bank employees should bring more professionalism in their attitude while dealing with customers to retain and attract more customers.
Banks should narrow down the spread between PLR and deposit rates. Banks should advertise and conduct special awareness programs to make SBI cards more popular among customers.
Questionnaire
Name Income ... Age Occupation . ...
Q2. Are you availing credit facility from any bank ? Yes No
Q3. If yes, from which bank you are availing credit facility ?
a) c)
b) d)
Q5. Are you satisfied with your existing bank ? Yes Q6. If no, then why .. Q.7 Tick the name of banks whose credit facilities are known to you ? a) d) SBI CANARA b) e) PNB UCO c) f) IOB OBC No .
Collatarel Security
Services
IOB Q9. According to you what is the main obstacle while getting finance under various credit facilities? a) c) e) Security Red Tapism b) d) Document Requirement Guarantee requirement
Q10. According to you arrange the parameters in the descending order of their preference? a) c) e) Interest Rate Services Document required b) d) f) Collateral Security Attitude of field Officer Validity period
Q11. Which banks name comes to your mind first while availing credit facility and why? .. .. Q12. Have you heard about SBI card? Yes No
Project Report on Primary Market, Primary Market Issues, Investors Attitude towards Primary Market
Introduction
The past twenty five years have witnessed a process of accelerating change in the worlds financial markets. Driven by an interacting process of liberalization and innovation, regulations have been removed, New product have emerged and old boundaries between financial intermediaries have been blurred. At the same time, growth of capital markets have posed new challenges to economic and financial stability.
Objectives Research Methodology Data Analysis Suggestions Conclusions Limitations Recommendations Bibliography Questionnaire
Project Description :
Title : Investors Attitude towards Primary Market Category : Project Report for MBA Pages : 70 This project is our paid category, its cost is Rs. 2499/- only without Synopsis and Rs. 2999/- only with synopsis. If you need this project, mail us at this id : qweryallprojectreports@gmail.com or phone/sms at +91-9468269340 We will send you a hardcopy with hard binding and a softcopy in CD from courier.