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A COMPARAT COMPARATIVE IVE STUDY WITH REFERENCE TO RELATED BANK LOANS IN CHENNAI
PROJECT REPORT (A Report su!"tte# "$ P%rt"%& Fu&'"&&!e$t o' te Re)u"re!e$ts 'or te #e*ree o' M%ster o' Bus"$ess A#!"$"str%t"o$ "$ Po$#"+err, U$"-ers"t,.
Su!"tte# , Ms/ 0000000000000000000000 0000000000000000000000 E$ro&!e$t No1 00000000000000000 0000000000 0000000 MBA FINANCE
DIRECTORATE OF DISTA DIS TANCE NCE EDUCATION PONDICHERRY UNIVERSITY PONDICHERRY 2 345 467
(JUNE.
1
CERTIFICATE CERTIFICATE OF THE 8UIDE
COMPARATIVE STUDY This is to certify that the project work titled 9A COMPARATIVE WITH REFERENCE TO RELATED BANK LOANS IN CHENNAI: is a bona bonafi fide de work ork of
Ms/
C/ ESS ESSTHE THER R RANI E$r E$ro&! o&!e$t e$t $o1 4;4 4;44;? 4;?3 3
Carried out t in partial fulfillment for the award of degree of MBA F"$%$+e of Po$#"+err, U$"-ers"t, under my guidance. This project work is original and not
submitted earlier for the award of any Degree/ Diploma or associateship of any other University / nstitution.
S"*$%ture o' te 8u"#e DR/000000000000000000
P&%+e1 Ce$$%" D%te1
!
DECALARATION
ESST STHE HER R RANI RANI hereby @ Ms/ C/ ES hereby declar declaree that that the projec projectt work work titled titled 9A
COMPARATIVE STUDY WITH REFERENCE TO RELATED BANK LOANS IN CHENNAI:/ is the original work done by me and submitted to the Po$#"+err, U$"-ers"t, in partial fulfillment of the re"uirements for the award of M%ster o' Bus"$ess A#!"$"str%t"o$ "$ F"$%$+e is a record of the original work DR/N/KALYANARAMAN/ done by me under the supervision of DR/N/KALYANARAMAN/
E$ro&&!e$t No1 000000000000 00000000000 0
S"*$%ture o' te Stu#e$t
D%te1
Ms/0000000000000000
#
ACKNOWLED8EMENTS
adore and honor the $oly Trinity for strengthening me% being with me to guide and help me complete co mplete this research work successfully.
am greatly greatly indebted indebted to my superv superviso isorr and guide DR/N/KALYANARAMAN % &acu &acult lty y% 'U(C 'U(C Twinni inning ng 'rog 'rogra ram m for for his his inva invalu luab able le guid guidan ance ce%%
supp suppor ortt and and
encouragement throughout the tenure of this work. greatly appreciate his fle)ibility towa toward rdss my inde indepen pende dent nt appr approa oach ch of this this proj projec ect. t. than thank k him him once once again again for for his his invaluable suggestions.
would also like to e)press e)press my sincere sincere thanks to my 'rogram 'rogram coordinator coordinator Pro'/ S/ %-"er M%"!%"r%@ MCo!@ M/E#@ M/P"&/@ MBA/@ PULC T"$$"$* Pro*r%! for his
invaluable support for the completion of the program.
would also like to e)press e)press my profound profound gratitude gratitude to Dr/ Aro",%s%!" Director PULC T"$$"$* Pro*r%! %$# Re-/ Fr/ A&ert Mutu!%&%"@ S/J/@ Pr"$+"p%&@ Lo,o&% Co&&e*e % for providing me with an opportunity to carry out this study successfully.
*y deepest deepest and loving loving grati gratitude tude goes to my beloved beloved parent parentss for their moral and prayerful support.
*y sincere thanks are due to all those who shared their invaluable time to provide the re"uired information for this research.
profusely thank my friends who generously shared their valuable time for me to complete the research success
+
ABSTRACT A COMPARAT COMPARATIVE IVE STUDY WITH REFERENCE TO RELATED RELATED BANK LOANS IN CHENNAI:/
This study aims at To identified best contribution of loan in bank Compared with other banks rate of interest n this study for loan enragements% lending loan and interest rate calculation. $ence the study was undertaken at this point of clear comparison on interest rate with other banks.
,
Table of of Contents Conte nts SL/NO 1.
LIST OF CONTENTS LIST OF TABLES
!.
LIST OF DIA8RAMS AND CHARTS
#.
CHAPTER 2 6 INTRODUCTION
+
PA8E NO -!
-# 1
6/6 INTROD INTRODUCT UCTION ION OF TO TOPIC PIC
1
6/; 6/; OB OBJE JECT CTIV IVES ES OF ST STUDY UDY
6/= 6/= SCOP SCOPE E OF ST STUD UDY Y
6/7 RESEAR RESEARCH CH METHO METHODOL DOLO8Y O8Y
10
6/5 LIMIT LIMITA ATION OF THE THE STUDY STUDY
1!
CHAPTER; CHAPTER ; COMPANY PROFILE
1#
;/6 INDUSTR INDUSTRY Y PROFIL PROFILE E
1,
;/; ;/; PROD PRODUC UCT T PROFIL PROFILE E
!0
,
CHAPTER= REVIEW OF LITERATURE LITERATURE
!
CHAPTER7 CHAPTER 7 DATA DATA ANALYSIS ANALYSIS AND INTERPREATATION
!
2
CHAPTER5
,
CONCULATION
BIBLIO8RAPHY
FINDIN8 SU88ESTIONS
2
LIST OF O F TABLES TABLES T%&e No/ 6
T"t&e
P%*e No/
34'C5 6ank jewel loan 7/8 T98C 6ank jewel loan
=;
;
34'C5 6ank jewel loan 7/8 '-9D-9 :3-*- 6ank
==
=
34'C5 6ank jewel loan 7/8 U36-9 6ank jewel loan
=7
7
34'C5 6ank development loan 7/8 T98C 6ank business loan
=3
5
34'C5 6ank development loan 7/8 '-9D-9 :3-*- 6-9;
=>
3
=?
>
34'C5 6ank development loan 7/8 U36-9 6ank business loan 34'C5 6ank secured loan 7/8 T98C 6ank
?
34'C5 6ank secured loan 7/8 '-9D-9 :3-*- 6ank
76
<
34'C5 6ank secured loan 7/8 U36-9 6ank
7;
64
(ast four years revenue statement
77
66
!00+ to !002 loan details
7>
6;
9o of loan did not finish finish with in duration
5;
6=
6ank loan bad debts in !00, to !002
57
67
(ast four year bank loans
53
65
< of contribution in every loan
5?
63
< of increase = decrease bank loans
37
-!
2
74
LIST OF CHARTS CHART NO 6
TITLE
PA8E /NO/
(ost four year 3evenue statement
75
;
:rowth of ncome
73
=
>ewel (oans
7?
7
>ewel (oan 8pecial
7<
5
Development (oan
54
3
8ecured (oan
56
>
9o of loan did not finish finish with in duration
5=
?
6ank loan bad debts in !00, to !002
55
<
!00+ ? !00, (oan contribution
34
64
!00, ? !00 (oan (oan contribution contribution
36
66
!00 ? !002 (oan contribution
3;
6;
!002 ? !00 (oan contribution in first "uarter
3=
-#
CHAPTER – I
INTRODUCTION
CHAPTER6 INTRODUCTION
6/6 INTRODUCTION OF TOPIC1
ndia has a well developed banking system. *ost of the banking in ndia was founded by ndian entrepreneur entrepreneurss and visionaries visionaries in the pre?independence pre?independence era to provide provide financial financial assistance assistance to traders traders to trade% trade% agricultur agriculturists ists and budding budding ndia industrialis industrialist. t. ndian banks have played a significant role in the development of ndian economy by lending finance to ndian industry.
@hile @hile the 36 became became a state state owned owned instit instituti ution on from from >anuar >anuary y 1st 1+% the banking regulation act was enacted in 1+ providing a framework for regulation and supervision of commercial banking activity. The first step towards the nationaliAation of commercial banks was the result of a report by the committee of direction of all ndia Credit Credit survey survey.. The commi committe tteee recomm recommende ended d one strong strong integr integrate ated d state state partne partnered red commercial banking institution to stimulate banking development in general and rural credit in particular.
10
The cooperative banking system is an important constituent of the ndian financial system. The cooperative banks in ndia play an important role in catering to the banking needs of the rural population and of certain sections of the urban population as well. The inade"uacy of rural credit engaged the attention of the 3eserve 6ank and the :overnment throughout the 1,0s and the 10s. The agricultural credit system as it has emerged has been a product of both evolution and intervention.
34'C5 bank is provided the loan in rehabilitating repatriates and customers through following credit system in co?operative act. 6anks provide the loan based on security value. :overned by the *inistry of $ome -ffairs% :ovt. of ndia.
The object objective ive was to serve serve better better the need need of develop developmen mentt of the conformit conformity y with with nation national al priori prioritie tiess and object objective ives. s. 4leven 4leven years years after after nation nationali aliAat Aation ion of commer commercia ciall bank .The :overnment announced the nationaliAation of si) more scheduled commercial bank.
11
PREREFORM STATUS
@hile technically there was a competition between the banks and non?banks and among bank substantially% competition was conditioned by policy as well as regulatory environment common ownership by the government and agreement between government of ndia as an owner and workers represented by the unions. :overned by the *inistry of $ome -ffairs% -ffairs% :ovt. of ndia.
REFORM MEASURES
The major challenge of the reform reform has been to introduce introduce element of market incentive as dominant factor gradually replacing the administratively coordinated planned action for development. development. 8uch paradigm paradigm shift has several several dimensions dimensions%% the corporate government being one of the important elements.
During reform period% the policy environment enhanced competition and provided greater opportunity for e)ercise of what may be called genuine corporate element in each bank to replace the element of coordinated the action of all entitled as join family to fulfill the predetermined the priority
1!
THE MEASURES TAKEN FOR REFORM WERE AS FOLLOWS
1B &irst greater competition was infused in banking system by permitting enter of private sector banks to e)ternal loan to all sector and it is mainly focused on the repatriates = customers
!B 8econd the reforms accord greater fle)ibility to the repco banking systems to manage both of the pricing and "uantity of resources for repatriates
#B To stre strengt ngthen hen the the banki banking ng syst system em to cope cope up with with the the chang changin ing g envi enviro ronm nment ent%% prudential standard has been imposed in a progressive manner in order to enhance the loan to the repatriates
+B -n appropriate legal% institutional and regulatory framework has been put in place for the repatriates other sector markets.
1#
BACK 8ROUND OF THE STUDY
5ver the years people have observed that% a company first task is to create customers but todayEs customers face a vast array of product and brand choices% ch oices% prices and services. Thus Thus%% the the trad tradit itio iona nall mark market etin ing g theo theory ry and prac practi tice ce have have focu focuss on attr attract actin ing g new new customers rather than retaining e)isting once. Today% however although attracting new customers remain as an important task% the emphasis should also be towards retaining current customers and to build profitable long term relationship with them% but at the same time have to think about the e)pansion of the present market also through the proper promotion.
&acing an e)panding e)panding economy economy and a rapidly rapidly growing market% companies companies should e)pand their markets for facing new challenges% competitive strategies and practices. :rowing markets meant plentiful supply of new customers. 5rganiAations could keep filling the marketing bucket with new customers are rising% so organiAations should evolve efficient methods to promote their products. t means the entire stream of purchases that the customer would make over a life time of patronage. The key to building everlasting relationship is the creation of superior customer value and satisfaction% and it should be reflected on the promotional activities of the product.
1+
a customer might have different level of e)pectations. $ere if the product services match their e)pectations they may rank it good% if the services e)ceeds e)pectations they may rank it e)cellent% if it is ordinary they may rank it moderate and if the services are not at all good they may rank it poor% thus leading to loss of customers.
The researcher carried a work on standing of 34'C5 6ank .with regard to the loan product. Thus survey is totally based on the selected banks.
This study also helped to get good suggestion from the customers.34'C5 bank has +# branches with operations spread all over ndia.
n order to get more competitive and attract a large base of customers% it is important for service institutions to provide good "uality service to the customer. 3ange and "uality would enable the bank to improve the efficiency of the service offered. The 34'C5 bank has in the past used internal resources in assessing the "uality of service offered. t is now felt that a study among their customers conducted by Fe)ternal agentE would be necessary to gain customers satisfaction with the service offered.
1,
NEED FOR THE STUDY
The project is a comparative analysis of the selected loan of the 34'C5 bank. this project is carried out to find out the standing of 34'C5 loans compare to some selected banks% which includes understand the product awareness and perception among target customers% findings the features on which the sales force and bank should give more importance and do a work to promote the product in the market. Thus% this project becomes essential to get a competitive edge. Through this project an attempt has been made to identify the e)plicit needs% attitude of the customers and promote the loan % as they are the final judge of the services provided by the bank only when the bank is in constant touch with its target customers.
1
6/; OBJECTIVE OF STUDY
PRIMARY OBJECTIVE1
•
Stu#, Stu# , %$# %$%&,s"s %$%&,s"s te '%+tors +o$s"#er +o$s"#er 'or %$ %$ &o%$s &o%$s (Rep+o (Rep+o %$. to *r%$te# ee& &o%$ (6 ,e%r.@ ee& &o%$ spe+"%& (3 !o$ts.@ #e-e&op!e$t &o%$ (us"$ess &o%$.@ %$# se+ure# &o%$ (propert, &o%$./
SECONDARY OBJECTIVE1
•
Stu#, %$# %$%&,s"s to te se+ur"t"es %-%"&%&e o' +usto!er/
•
To stu#, %$# %$%&,s"s te rep%,%&e #ur%t"o$ o' te &o%$
12
6/= SCOPE OF STUDY
•
To "#e$t"', te est 'or! o' &o%$ %-%"&%&e "$ %$/
•
To pro-"#e &o%$ %se# o$ +usto!er +o$-e$"e$+es/
•
Tee eG%!" T eG%!"$e $e poss" poss"" "&"t &"t, , o' &o%$ &o%$ e+o e+o!"$ !"$* * %# %# %$# su**e su**est" st"$* $* +orre +orre+t +t !e%sures/
1
6/7 RESEARCH METHODLO8Y RESEARCH DESI8N
3esearch in common parlance refers to search for knowledge. 5ne can also define research as a scientific and systematic search for pertinent information on a specific topic. - research design is the arrangement of conditions for collection and analysis of data in a manne mannerr that that aim aim to comb combin inee rele relevan vance ce to the the rese resear arch ch purpo purpose se with with econo economy my in procedure. n fact research design is the conceptual structure within which research is conductedG it constitutes the blueprint for the collection% measurement and analysis of data.
STATEMENT OF PROBLEM
This research is conducted to know the various ways to increase the loan product through conducting comparative study with the product of the competitors and knowing the bank report banks loan product. The study is also trying to find the standing of the 345C5 bank loan product in the market and suggest ways to make the product more customers% oriented and effective. t is also going to help the organiAation to retain its business and for further growth.
1
SOURCES OF DATA1
D%t%s1
The second secondary ary includ includes es the findi findings ngs or the basic basic resear research ch already already done done by the organiAations. 6eside% it also includes the appropriate material from newspapers% journals% reports and books and internet.
Se+o$#%r, D%t%s1
-udit report 6alance sheets Company profile report
!0
6/5 LIMITATION OF STUDY
•
To stu#, %$# %$%&,s"s %&& te &o%$s ut T"!e %-%"&%&e "s sort (uly 1!0. -t present% the 6ank is functioning at Chennai with ++ branches% an 4)tension Counter and $.5. T98C 6ank is guiding the Dist. Central Coop. 6anks / 'rimary -gricultural Coop. 6anks in their functioning and it is playing a major role in the coop. movement of Tamil Tamil 9adu.
+!
T98C 6ank was formed in the year in which the coop. movement of Tamil 9adu was formed. -s such% the 6ank has been serving the people of Tamil 9adu for a centenary for their economic development. -s far as ndian coop. movement is concerned% the 6ank has commenced its business from the very ne)t year of the formation of coop. movement in ndia. T98C 6ank is the first ever 8tate Coop. 6ank having the credit of celebrating the centenary year.
T98C 6ank has got the license of 3eserve 6ank of ndia to carry on the banking business. T98C 6ank is a 8cheduled Coop. 6ank and has been listed under the 8econd 8chedule of 36 -ct. T98C 6ank is a member of the Deposit nsurance and Credit :uarantee Corporation HDC:CB and is an insured coop. bank as per DC:C -ct. T98C 6ank has got the privilege of having its share capital by the :overnment of Tamil 9adu. T98C 6ank has been under close supervision and monitoring of the higher financing agencie agencies% s% viA.% viA.% 36% 36% 9-6-3D 9-6-3D.. 'eriod 'eriodica icall inspect inspection ion and superv supervisi ision on are done by 9-6-3D as per 36 guidelines. :overnment of Tamil Tamil 9adu is reviewing the performance of the 6ank periodically.
TNSC %$ r%t o' "$terest
>ewel loan
K 10< pa
(oan an per gram K 00 3s Development loan rate of interest K 1 <
+#
COMPARISON OF JEWEL LOAN TABLE 2 6
34'C5 6ank >ewel (oan 7/8 T98C 6ank >ewel (oan
N%!e o' te
M"$"!u! o'
R%te o'
Lo%$
&o%$
&o%$ per *r%!
"$terest
per"o#
34'C5 6ank
>ewel (oan
3s 200
1!<
1Iear
T98C 6ank
>ewel (oan
3s 00
10<
1Iear
B%$s
34'C5 >ewel (oan and T98C 6ank >ewel (oan are popular loans of both the 6anks. The 34'C5 6ank rate of interest is 1!< per annum. 6ut T98C 6ank rate of interest is 10ewel loan is 1Iear. Compare with both banks 34'C5 6ank is charging !< high rate of interest. 34'C5 6ank provide ma)imum lone of 3s 200 per gram% but T98C 6ank provide only 3s 00 per gram of ma)imum limit. Compare with two bank s 34'C5 6ank gives 3s 100 more than T98C 6ank. 6oth 6anks are giving the minimum loan amount ,000. Compared with two banks 34'C5 6ank charges high rate of interest in !< high.
TABLE 2 ;
++
REPCO B%$ Jee& Lo%$ VS PANDIAN 8RAMA B%$ Jee& Lo%$
N%!e o' te
M"$"!u! o'
R%te o'
Lo%$
&o%$
&o%$ per *r%!
"$terest
per"o#
>ewel (oan
3s 200
1!<
>ewel (oan
3s ,,0
11<
B%$s
34'C5 6ank
1Iear
'-9D-9 :3-*-
10 *onths
6ank
34'C5 >ewel (oan and '-9D-9 :3-*- 6ank >ewel (oan are the popular loan both the 6ank. The 34'C5 6ank rate of interest is 1!< per annum and ma)imum loan loan perio period d is 1 Iear. ar. 6ut 6ut '-9D9D-9 9 :3-* :3-*- 6ank 6ank rate rate of inte intere rest st is 11< 11< and and ma)imum loan period is 10 *onths. @hen compared with both banks 34'C5 6ank charging 1< high rate of interest. 34'C5 34'C5 6ank 6ank provi provide de ma)i ma)imu mum m lone lone of 3s 200 200 per gram gram%% but but '-9D9D-9 9 :3-*- 6ank provide only 3s ,,0 per gram of ma)imum limit. @hen Compare with two banks 34'C5 6ank gives 3s 1,0 more than '-9D-9 :3-*- 6ank. 34'C5 6ank is giving the minimum loan amount 3s ,000% 6ut '-9D-9 :3-*- giving the minimum loan amount 3s +000. Compare with two banks 34'C5 6ank charge high rate of interest% That is 1< high. TABLE 2 = REPCO B%$ Jee& Lo%$ VS URBAN B%$ Jee& Lo%$
+,
N%!e o' te
M"$"!u! o'
R%te o'
Lo%$
&o%$
&o%$ per *r%!
"$terest
per"o#
>ewel (oan
3s 200
1!<
1Iear
>ewel (oan
3s ,0
11<
1Iear
B%$s
34'C5 6ank
U36-9 6ank
34'C5 >ewel (oan and U36-9 6ank >ewel (oan are popular loan of both the 6ank. The 34'C5 6ank rate of interest is 1!< per annum. 6ut U36-9 6ank rate of interest is 11ewel loan is 1Iear. Compare with both banks 34'C5 6ank charging 1< high rate of interest. 34'C5 6ank provide ma)imum lone of 3s 200 per gram% but U36-9 6ank provide only 3s ,0 per gram of ma)imum limit. Compare with two bank s 34'C5 6ank gives 3s ,0 more than U36-9 6ank. 6oth 6anks are giving the minimum loan amount 3s ,000. Compared with two banks 34'C5 6ank charge high rate of interest% That is 1< high.
n this Comparative analysis we find than comparison with o ther banks 34'C5 6ank is charging high rate of interest. -t the same time 34'C5 6ank provides ma)imum lone of 3s 200 per gram compared with other selected banks. -ll selected banks to maintain of loan duration on 1 year and '-9D-9 '-9D-9 :3-*- 6ank maintains is 10 months only. +
TABLE 2 7 COMPARISON COMPARISON OF BUSINESS LOAN
34'C5 6ankEs development loan 7/8 T98C 6ank business loan
+2
M%G"!u! o' B%$
N%!e o' &o%$
R%t o' "$terest &o%$ %!ou$t
Development
0< of security 1<
REPCO B%$
loan
value 20< of security
TNSC B%$
6usiness loan
1< value
$ere have taken the basic 6U8948 (5-9 of selected banks for the comparison. Development loan of the 34'C5 6ank and business loan of the T98C 6ank. 6oth banks provide loan only for business purpose. 34'C5 6ank charge 1< rate of interest% but T98C 6ank charge 1< rate of interest. 6oth the banks provide loan based on security value. 34'C5 6ank to give the ma)imum loan is 0< of security security value T98C 6ank to give the ma)imum loan is 20< of security value. 34'C5 6ank provides loan only to e)isting business only but T98C 6ank to give to new and e)isting business.
TABLE 2 5
REPCO B%$s #e-e&op!e$t &o%$ VS PANDIAN 8RAMA B%$ us"$ess u$"t &o%$ B%$
+
N%!e o' &o%$
R%t o' "$terest
M%G"!u! o'
&o%$ %!ou$t
Development 1<
REPCO B%$
PANDIAN
0< of security
loan
value
6usiness unit
20< of security 1<
8RAMA B%$
loan
value
Development loan and business unit loan are the very familiar loan in both banks. 6oth banks provide loan only for business purpose. 34'C5 6ank charge 1< rate of interest% '-9D-9 :3-*- also charge same rate of interest. 6oth the banks provide loan based on security value. 34'C5 6ank to give the ma)imum loan of 0< of security value '-9D-9 :3-*- 6ank to give the ma)imum loan is 20< of security value. Two banks provide loan only to e)isting business only. 5f the two banks 34'C5 6ank to highly charge 1< rate of interest when compared to '-9D-9 :3-*- 6ank.
TABLE 2 3 REPCO B%$s #e-e&op!e$t &o%$ VS URBAN B%$ us"$ess &o%$ M%G"!u! o' B%$
N%!e o' &o%$
R%t o' "$terest &o%$ %!ou$t
+
Development
0< of security 1<
REPCO B%$
loan
value 0< of security
URBAN B%$
-gri loan
< value
34'C5 6ank provides business loan is development loan for business development purpose. 6ut U36-9 6ank provide business loan only for agriculture purpose. 34'C5 6ank is to charge 1< rate of interest% U36-9 6ank < rate of interest to be charge. 6oth the banks provide loan based on security value. 34'C5 6ank to give the ma)imum loan is 0< of security value U36-9 6ank to give the ma)imum loan is 20< of security value. 5f the two banks 34'C5 6ank charge 10< rate of interest compare with U36-9 6ank. U36-9 6ank mainly concentrates on farmers so to give low rate of interest. 34'C5 6ank provides loan for commercial purpose so as to get high rate of interest.
n this Comparative analysis to find comparison with other banks 34'C5 6ank to charge high rate of interest. -t the same time 34'C5 6ank provide ma)imum lone of 0< of security value compared with other selected banks. -ll selected banks to provide loan for business purpose% developing business% and start new business. 34'C5 6ank collected ,0
loan from customer on 4*. 6ank provide loan on :57T value to be calculated. 34'C5 6ank couldnEt give for new businessG other banks g ive to the new business.
TABLE 2 > COMPARTIVE OF SECURED LOAN REPCO B%$ se+ure# &o%$ VS TNSC %$
,1
M%G"!u! o' B%$
N%!e o' &o%$
R%t o' "$terest &o%$ %!ou$t
REPCO B%$
8ecured loan
1<
0<
TNSC B%$
'roperty loan
1<
0<
$ere $ere have have take taken n the the basi basiss of 84CU 84CU34 34D D (5-9 (5-9 from from sele select cted ed bank bankss for for the the comparison. 84CU34D loan of the 34'C5 6ank% and '35'43TI loan of the T98C 6ank. 6oth banks provide loan only for buying new property. 34'C5 6ank charges 1< rate of interest% but T98C 6ank charges charges 1< of rate of interest. interest. 6oth the banks provide loan based on security value. 34'C5 6ank is to give the ma)imum loan of 0< of security value T98C 6ank also gives the ma)imum loan of 0< of security value. @hen compared to analysis of the two banks 34'C5 6ank charges high rate of interest.
TABLE 2 ? REPCO B%$ se+ure# &o%$ VS PANDIYAN PANDIYAN 8RAMA B%$
,!
M%G"!u! o' B%$
N%!e o' &o%$
R%t o' "$terest &o%$ %!ou$t
REPCO B%$
8ecured loan
1<
0<
TNSC B%$
'roperty loan
1<
20<
8ecurity loan and property loan are provided only for buying new property or buying new land. 34'C5 6ank charges 1< rate of interest% '-9D-9 :3-*- charges 1< rate of interest. 6oth the banks provide loan based on security value. 34'C5 6ank is to give the ma)imum loan of 0< of security value '-9D-9 :3-*- 6ank is give the ma)imum loan of 20< of security value. Two banks lending loan only buy new property. 5f the two banks 34'C5 6ank to charge !< rate of interest compared to '-9D-9 :3-*- 6ank.
TABLE 2 < REPCO B%$ se+ure# &o%$ VS URBAN B%$
,#
M%G"!u! o' B%$
N%!e o' &o%$
R%t o' "$terest &o%$ %!ou$t
REPCO B%$
8ecured loan
1<
0<
1!<
0<
8ecure property URBAN B%$
loan
8ecurity loan and property loan are provides only for buying new property or buying new land. 34'C5 6ank charges 1< rate of interest% U36-9 6ank charges 1!< rate of interest only. 6oth the banks provide loan based on security value. 34'C5 6ank is to give the ma)imum loan of 0< of security value U36-9 6ank to give the ma)imum loan 0< of security value. Two banks lending loan only to buy new property of the two banks 34'C5 6ank is to charge < rate of interest compared to U36-9 6ank.
n this Comparative analysis to find comparison with other banks 34'C5 6ank is to charge high rate of interest. -t the same time 34'C5 6ank provides ma)imum lone is 0< of security value compared with other selected banks. -ll selected banks to provide loan for buying new land or property. 34'C5 6ank was collected loan from customers to 4*. 6ank provides loan on :57T value to be calculated. ,+
34'C5 6ank loans compared with other selected banks loan interest is high in all type of selected loans. >ewel loan% development loan% secured loan are the ma)imum loan limit is high compared with other selected banks.
TABLE 2 64 Pre-"ous 'our ,e%rs re-e$ue +o!p%r%t"-e st%te!e$t
I4-3
,,
34749U4 9 (akhs
9C34-84 9 (akhs
< 5& 9C34-84
;44=;447
,20
!00+?!00,
!!
;447;445
!!
!00,?!00
#+#
;445;443
#+#
!00?!002
10+
,!
1<
1,!1
!!<
!#+1
!<
The bank revenue increased in last four year. Compare to the last fore year statement. 3evenue is increased in ,! lakh% 1,!1lakh% !#+1 lakh respectively.
CHART 2 6
COMPARITIVE STATEMENT OF BANK REVENUE
,
CHART 2 ;
8ROWTH OF THE INCOME ,2
TABLE66
;447 to ;44> %&& &o%$ #et%"&s "$ tous%$#
,
I4-3
'-3TCU(-3 !00+?!00,
!00,?!00
!00?!002
!002?!00
>ewel loan
!+#
##.,
#2,+!.,
,1.#
>ewel loan special
20.#
1!,1+.
+!+.1
122.1
Development loan
120,
12!
1#+.!!#
!0!,
8ecured loan
+22.+
,+0#0.,
+#!.
1!1#+.
I$'ere$+e1
&rom the above table shows last fore years loans in thousands. !00+ to !00 selected loans of jewel loan% jewel loan special% development loan% and secured loan reports in thousands. (oan particulars are given in the 1st "uarter of !002?!00.
CHART 2 =
,
CHART 2 7
0
CHART 2 5
1
CHART 2 3
!
TABLE6; #
NO/ OF LOAN THAT DIDNOT FINISH WITH IN YEAR
P%rt"+u&%r
>ewel loan
>ewel loan special
Development loan
8ecured loan Total
Ye%r ;445;443
+2
20
1!
I$+re%ses
De*re%ses
#<
?
?
1#<
<
?
1 ., <
?
?
?
Ye%r ;443;44>
,1
,1
!+
1
1
1+,
1++
n a particular year some of customers didnEt finish loan in the particular period. The minimum customer could not pay development loan and secured loan with in scheduled time. >ewel loan has been decrease decrease to 1#< in !00, and !00. 6ut other loans have been increased
+
CHART 2 >
NO/ OF CUSTOMERS DIDNOT FINISH WITH IN A DURATION
,
TABLE6= B%# #et o' ;445;443 ;443;44> %$ &o%$
'articular
Iear !00,?!00
Iear !00?!002
>ewel loan
!+
1
>ewel loan special
#2
#0
Development loan
0
0
8ecured loan
0
0
I$'ere$+e1
The above table shows that bad debt position of loans in last two year. The bad debt of jewel has been decreased from #2 to #0.
CHART 2 ? B%# #et o' ;445;443 ;443;44> %$ &o%$
TABLE67
2
L%st 'our ,e%rs %$ &o%$ "$ tous%$#s
TYPES OF LOAN
;44745
;44543
;4434>
;44>4?
>4@4( (5-9
!+#
##.
#2,+!.,
,1.#
>4@4( (5-9 8'4C-(
20.#
1!,1+.
+!2.1
122.1
D474(5'*49T (5-9
120,
12!
1#+.!
!0!,
84CU34D (5-9
+22.#
,+0#0.,
+#!,.
1!,#+.
$5U849: (594
!,,.+
1+2#.#
2#,.
M
8-(-3I (5-9
#,.1
!+!.,
1!
#.
74$C4( (5-9
+2.
#.
1#!
#+
4DUC-T59 (5-9
2.,
#.#
M
M
5D (5-9
2
11#
1+,
!10
C598U*43 (5-9
12.
1!.#
+
M
(4-84 (5-9
M
M
M
*4DC-( (5-9
M
M
M
M
*C35 &9-9C4
+##.
!02
#0
#+
(5-9 59 D4'58T
+##
,2!.
,2
1+
I$'ere$+e1
M
34'C5 6ank varies type of loan lending to customer. They give ma)imum of loan for secured loan and development loan respectively. !002?!00 is an only 1st "uarter loan amounts H-pril?>uneB.
TABLE 65
o' +o$tr"ut"o$ "$ e-er, ,e%r
TYPES OF LOANS
;44745
;44543
;4434>
;44>4?
>4@4( (5-9
! !<
!2<
!#<
1 +<
>4@4( (5-9 8'4C-(
<
<
!2<
+ <
D474(5'*49T (5-9
1 <
1#<
11<
,<
84CU34D (5-9
+ +<
+0<
!2<
# 0<
$5U849: (5-9
! ., <
1<
0 ., <
?
8-(-3I (5-9
0 . <
0 .! <
1<
0. ! <
74$C(4 (5-9
0 .! <
0 ., <
?
0. 1 <
4DUC-T59 (5-9
0 .! <
0. ! <
?
?
5D (5-9
1<
0 .! <
1<
0. , <
C598U*43 (5-9
0 .! <
0. 1 <
?
?
(4-84 (5-9
?
?
?
?
*4DC-( (5-9
?
?
?
?
*C35 &9-9C4
0 .# <
!<
! ., <
!<
(5-9 59 D4'58T
+<
+<
+<
0. + <
I$'ere$+e1
20
34'C5 6ank providing varies type of loans to the customers. They give ma)imum preference to secured loan and development loan respectively. Compare with other loans more loan amount provided to jewel loan special +< of total amount within first "uarter H!002?!00B.
CHART 2 <
21
CHART 2 64
2!
CHART 2 66
2#
CHART 2 6;
2+
TABLE63
2,
%$ &o%$s
Iears
>ewel loan
!00+?!00, !00,?!00 !00?!002 !002?!00 Total
!0< #0< #1< 1< 100<
>ewel loan special 2< ., < # 0< #0.,< 100<
Development loan !< !< #0< 1#< 100<
8ecured loan !+.,< !< !!.,< !,< 100<
o' "$+re%se #e*re%ses %$ &o%$s
Iear
>ewel loan
>ewel loan special
Development loan
8ecured loan
!00,?!00
10<
! ., <
?1<
+., <
!00?!002
11<
! 0 ., <
1!<
?,.,<
!002?!00
?1!<
! #., <
?12<
! ., <
2
CHAPTER – V
FINDING & SUGGESTIONS
22
CHAPTERV FINDIN8S SU88ESTIONS
FINDIN8S The major finding in this project% it is found then comparative analysis of the bank
loans in 34'C5 6ank is charging high rate of interest.
They are not providing loans to start the new business and entrepreneurs.
They are providing property loans based on the government value of the property.
8o the customer will get small amount of loan.
They took long time to process and provide loan.
t is found in the comparative analysis of the bank jewel loan special growth is
!,< increasing compared with last # years. -t the same time jewel loan is slowly down at 1!< compared with last ! years.
t is found in the comparative analysis of the bank D474(5'*49T (5-9 is
down at 12< compare with last year.
t is found than the trend analysis of the bank ma)imum amount of loan provided
to the 84CU34D (5-9.
2
SU88ESTIONS
Competitive banks are receiving low rate of interest. 8o% they must decrease rate
of interest.
-ll other banks have to give new business and entrepreneurs loans. 8o% they must
give these types of loan.
p roperty.. 'roperty loans must to give a based on normal value of the property
They must increase processing speed and provide loans "uickly.
Compare with previous years% months jewel loan special is increased compared
with 1! month jewel loan. 8o they will concentrate # months jewel loan.
&inally% bank must increase the different types of schemes in secured loans.
6ank must split the amount in to other loans.
2
CHAPTER – VI
CONCLUSION 0
CONCLUSION
34'C5 6ank having lot of loan schemes% but they concentrate on some particular loans like like secure secured% d% jewel jewel (oan% (oan% 9ot concent concentrat ratee on some some other other loans loans like like lease% lease% vehicle vehicle%% consumer loan and etc. They should create attractive schemes for loan based on customer needs and% if they reduce the rate of interest compare compare with other competitive competitive bank rates% they can achieve numerous end users.
1
CHAPTER – VII
BIBLIOGRAPHY
!
BIBLIO8RAPHY
1B C.3. ;othari% ;othari% resear research ch methodology methodology 9ew Delhi% wisva wisva prakasan prakasan%% 10% second second edition !B 8. 9. *aheswari *aheswari.. &inancial &inancial management management 9ew 9ew Delhi !000 !000 third third edition edition
Jour$%&s Reports
1. 34'C5 34'C5 6ank 6ank annual annual repo reports rts%% 9on 9on !002 !002 !. bank bank audi auditt repo report rt #. previ previou ouss proj projec ectt repo report rtss
WEBSITE /rep+o%$/+o! /t$se%$/+o! /p%$#"%$%$/+o! /'"$%$+e/"$#"%!%rt/+o! /*oo*&e/+o!
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