Funded facilities

Term Loans : Repayment in instalments over a fixed time. Purpose : For acquisition of fixed assets / machinery or for financing projects. Amount of Loan : Generally 75% of the cost of maintaining a margin of 25%. Rate of Interest :

Domestic Term Deposits/ NRO Term Deposits

The Bank has decided to revise interest rates on domestic and NRO term deposits w.e.f. 10.04.2013. [Interest rate in % p.a.]

For amount less than Rs. 1.00 crore Duration Senior Citizen (% p.a.) 5.00 5.00 6.50 6.50 8.00 8.00 9.00 9.00 9.50 9.60

For amount Rs. 1.00 crore to Rs. 5.00 crores Annualized Yield (% p.a.) 5.50 5.50 7.0 7.00 7.7 7.82 8.77 9.30 9.30 --

Above Rs. 5.00 crore Normal Annualized (% Yield (% p.a.) p.a.) 7.00 7.50 7.50 7.50 8.00 8.00 8.50 9.00 9.00 -7.00 7.50 7.50 7.50 8.02 8.08 8.77 9.30 9.30 --

Normal (% p.a.) 5.00 5.00 6.50 6.50 7.50 7.50 8.50 8.50 9.00 9.10

Annualized Yield (% p.a.) 5.00 5.00 6.50 6.50 7.52 7.57 8.77 8.77 9.30 9.48

Annualized Normal Yield (% (% p.a.) p.a.) 5.00 5.00 6.50 6.50 8.02 8.08 9.30 9.30 9.84 10.03 5.50 5.50 7.00 7.00 7.75 7.75 8.50 9.00 9.00 ---

7 to 14 Days 15 to 30 Days 31 to 45 days 46 to 90 days 91 days to 119 days 120 days to 180 days 181 days to 363 364 days One year Mahanidhi (444 Days) Above one year to less than 3 years 3 years Mahalaximi

9.00

10.20

9.50

10.84

9.00

10.20

9.00

10.20

9.10

10.32

9.60

10.97

9.00

10.20

9.00

10.20

Over 3 years to 5 years Over 5 years

9.00 9.00

11.21 14.35

9.50 9.50

11.98 15.57

9.00 9.00

11.21 14.35

9.00 9.00

11.21 14.35

The rate of interest on Bank Term Deposits Scheme, 2006 (Tax Saving Scheme for 5 year term deposit) up to investments of Rs. 1.00 Lakh only will be 9.00%. In case of premature withdrawal of deposits, interest is payable at the rate applicable to the period for which deposit has been actually held with the Bank. On premature withdrawal of term deposits, for deposits up to 1 year maturity (tenor at the time of opening the account) there will NO PENALTY on the applicable interest rate. Interest rates on prematurely withdrawn term deposits with maturity period more than 1 year will be 1% below the applicable rate. Deposits to be accepted for a maximum period of 10 years All rates are subject to change from time to time.

NRE Deposits
Duration For Amount Less than Rs. 1.00 crore Normal (% p.a.) 1 year to less than 3 years 3 years to less than 5 years Over 5 years 9.00 9.00 9.00 Annualized Yield (% p.a.) 10.20 11.21 14.35 For Amount above Rs. 1.00 crore Normal (% p.a.) 9.00 9.00 9.00 Annualized Yield (% p.a.) 10.20 11.21 14.35

No interest is payable if the deposit is prematurely closed before the minimum period of one year. Above one year premature payment attracts penalty o f 1%. No additional interest to senior citizens is allowed. The interest rate for NRE Savings Deposits is 4.0 %. All rates are subject to change from time to time.

FCNR Deposits
Period 12-15-18-21 months 24-27-30-33 months 36-39-42-45 months Rates for USD 2.73 2.43 3.53 Rates for GBP 2.91 2.63 3.69 Rates for EURO 2.43 2.52 3.62 Rates for AUD 5.58 5.11 6.25 Rates for CAD 3.79 3.33 4.43

48-51-54-57 months 60 months

3.73 3.95

3.80 3.97

3.76 3.93

6.46 6.58

4.55 4.68

Base Rate : 10.25% ( With effect from 09. 02. 2013 ) BPLR : 15.00% ( With effect from 01. 10. 2011 )

1.

Security : Charge on assets.

2) Cash Credit: Running account facility. Purpose: To meet working capital requirements. Amount of facility: Based upon the Bank's assessment of the working capital requirement. Rate of Interest: Base Rate : 10.25% ( With effect from 09. 02. 2013 ) BPLR : 15.00% ( With effect from 01. 10. 2011 )

3) Bill Discounting : In the nature of post sales limit. Amount of facility : Generally upto a specified percentage of the value of the bill. Discounting under : L/C or firm order. Rate of Interest : Base Rate : 10.25% ( With effect from 09. 02. 2013 ) BPLR : 15.00% ( With effect from 01. 10. 2011 )

1.

Security : Charge on the Bill, Collateral if required.

Definition of 'Term Loan'

A loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate. Term loans almost always mature between one and 10 years.

Features of Term Loan

1. MATURITY The maturity period of term loans is typically longer in case of sanctions by financial institutions in the range of 6-10 years in comparison to 3-5 years of bank advances. However, they are rescheduled to enable corporate borrowers tide over temporary financial exigencies. 2. NEGOTIATED The term loans are negotiated loans between the borrowers and the lenders. They are akin to private placement of debentures in contrast to their public offering to investors. 3. SECURITY Term loans typically represent secured borrowing. Usually assets, which are financed with the proceeds of the term loan, provide the prime security. Other assets of the firm may serve as collateral security. All loans provided by financial institutions, alongwith interest, liquidated damages, commitment charges, expenses, etc., are secured by way of: a) First equitable mortgage of all immovable properties of the borrower, both present and future for the entire institutional loan including commitment charges, interest, liquidated damages and so on; and b) Hypothecation of all movable properties of the borrower, both present and future, subject to prior charges in favour of commercial banks for obtaining working capital finance/advance. 4. INTEREST PAYMENT AND PRINCIPAL REPAYMENT The interest on term loans is a definite obligation that is payable irrespective of the financial situation of the firm. To the general category of borrowers, financial institutions charge an interest rate that is related to the credit risk of the proposal, subject usually to a certain minimum prime lending rate/ floor rate (PLR). Financial institutions impose a penalty for defaults. In case of default of payment of installments of principal and/or interest, the borrower is liable to pay by way of liquidated damages additional interest calculated at the rate of 2 per cent per annum for the period of default on the amount of principal and/or interest in default. In addition to interest, lending institutions levy a commitment fee on the unutilized loan amount. The principal amount of a term loan is generally repayable over a period of 6 to 10 years after the initial grace period of 1 to 2 years. Typically, term loans provided by financial institutions are repayable in equal semi-annual installments, whereas term loans granted by commercial banks are repayable in equal quarterly installments. With this type of loan amortization pattern, the total servicing burden declines over time, the interest burden declining and principal repayment remaining constant.

In other words, the common practice in India to amortized loan is repayment of principal in equal installments (semi-annual/annual) and payment of interest on the unpaid/outstanding loans.