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A REPORT PROJECT ON MARKETING ON SMALL SCALE AND ITS COMMERCIAL LOAN PRODUCTS With reference to STATE BANK OF INDIA

MAIN BRANCH,VIZIANAGARAM Aproject report submitted in partial fulfillment of the requirement for the award of The de ree of MASTER OF BUSINESS ADMINISTRATION Submitted by GRANDHI BANGARU LAKSHMI Re d !"# $$%%&'('%'(' !nder the uidance of M)* V*S*K*VARMA

DEPARTMENT OF COMMERCE AND MANAGEMENT STUDIES MAHARA+A,S POST GRADUATE COLLEGE Appro"ed b# A$CTE NEW %Affiliated to Andhra !ni"ersit#&'isa(hapatnam) Phool *au h& 'i+iana aram %'$%-%'$(

,-NO 0 3 7 9 :

PART$C!.AR, $NTRO1!CT$ON $N1!,TR4 AN1 OR/AN$,AT$ONA. PRO5$.E CONCEPT, O5 ,8E PRAT$CA. ,T!14 ,!88AR4

PA/E NO 2 6 36 02 7

DECLARATION

$& /-*AN/AR! .A;,<8$ stud#in at 8aharaja post /raduation colle e& 'i+iana aram& hereb# state that this summer internship project titled =8AR;$T$N/ O5 ,8A.. ,CA.E $N1!,TR$E, AN1 $T, CO88ERC$A. .OAN PRO1!CT,>& carried out at ,TATE *AN; O5 $N1$A& 8A$N *ranch of 'i+iana aram district& is an ori inal wor( carried out b# me under the uidance and super"ision of 8r-T-,-/OWT<A8&chief mana er of 8ain branch "i+iana aram and that the project or an# part thereof has not been pre"iousl# submitted for a 1e ree?1iploma of an# !ni"ersit#?$nstitution elsewhere/-*AN/AR! .A;,<8$ 8RP/ CO..E/E-

1ATE@A3th Jul#& 3B07

A./!"01ed me!t
$am than(ful to project uide mr-satish "arma sir %assistance professor) deportment of mana ement studies& 8rp Colle e& 'i+iana aram for uidin and helpin me in the completion of this project $ encerel# than( for prof- p-srinu"asa subba rao his consistent ad"ice and encoura ement durin m# project wor( period $ also than( to owtham sir and the trainin department of ,tate ban( of $ndia which permitted me to complete m# practical trainin at their presti ious or ani+ation $am rateful to prof- Ta"itinaidu rao aru of 8rp colle e "i+iana aram for endower and cooperation in doin the project Place@A 1ate@A ,i nature /-*AN/AR! .A;,<8$

BANKING IN INDIA

,tructure of the or anised ban(in sector in $ndia- Number of ban(s are in brac(ets-

B2!/i! i! I!di2 @A $n the modern sense ori inated in the last decades of the 0Cth centur#- The first ban(s were *an( of <industan %022BA0C3D) and The /eneral *an( of $ndia& established 02C6 and since defunctThe lar est ban(& and the oldest still in eEistence& is the ,tate *an( of $ndia& which ori inated in the *an( of Calcutta in June 0CB6& which almost immediatel# became the *an( of *en al- This was one of the three presidenc# ban(s& the other two bein the *an( of *omba# and the *an( of 8adras& all three of which were established under charters from the *ritish East $ndia Compan#The three ban(s mer ed in 0D30 to form the $mperial *an( of $ndia& which& upon $ndiaFs independence& became the ,tate *an( of $ndia in 0D::- 5or man# #ears the presidenc# ban(s acted as quasiAcentral ban(s& as did their successors& until the Reser"e *an( of $ndia was established in 0D7:$n 0D6D the $ndian o"ernment nationalised all the major ban(s that it did not alread# own and these ha"e remained under o"ernment ownership- The# are run under a structure (now as FprofitAma(in public sector underta(in F %P,!) and are allowed to compete and operate as commercial ban(s- The $ndian ban(in sector is made up of four t#pes of ban(s& as well as the P,!s and the state ban(s& the# ha"e been joined since 0DDBs b# new pri"ate commercial ban(s and a number of forei n ban(s*an(in in $ndia was enerall# fairl# mature in terms of suppl#& product ran e and reachAe"en thou h reach in rural $ndia and to the poor still remains a challen e- The o"ernment has de"eloped initiati"es to address this throu h the ,tate ban( of $ndia eEpandin its branch networ( and throu h the National *an( for A riculture and Rural 1e"elopment with thin s li(e microfinanceHi3t")y

$n ancient $ndia there is e"idence of loans from the 'edic period %be innin 02:B *C)- .ater durin the 8aur#a d#nast# %730 to 0C: *C)& an instrument called adesha was in use& which was an order on a ban(er desirin him to pa# the mone# of the note to a third person& which corresponds to the definition of a bill of eEchan e as we understand it toda#- 1urin the *uddhist period& there was considerable use of these instruments- 8erchants in lar e towns a"e letters of credit to one another C"1"!i21 e)2 1urin the period of *ritish rule merchants established the !nion *an( of Calcutta in 0C3D& first as a pri"ate joint stoc( association& then partnership- $ts proprietors were the owners of the earlier Commercial *an( and the Calcutta *an(& who b# mutual consent created !nion *an( to replace these two ban(s- $n 0C9B it established an a enc# at ,in apore& and closed the one at 8ir+apore that it had opened in the pre"ious #ear- Also in 0C9B the *an( re"ealed that it had been the subject of a fraud b# the ban(Fs accountant- !nion *an( was incorporated in 0C9: but failed in 0C9C& ha"in been insol"ent for some time and ha"in used new mone# from depositors to pa# its di"idends The Allahabad *an(& established in 0C6: and still functionin toda#& is the oldest Joint ,toc( ban( in $ndia& it was not the first thou h- That honour belon s to the *an( of !pper $ndia& which was established in 0C67& and which sur"i"ed until 0D07& when it failed& with some of its assets and liabilities bein transferred to the Alliance *an( of ,imla5orei n ban(s too started to appear& particularl# in Calcutta& in the 0C6Bs- The Comptoir dFEscompte de Paris opened a branch in Calcutta in 0C6B& and another in *omba# in 0C63G branches in 8adras and Pondicherr#& then a 5rench possession& followed- <,*C established itself in *en al in 0C6D- Calcutta was the most acti"e tradin port in $ndia& mainl# due to the trade of the *ritish Empire& and so became a ban(in centreThe first entirel# $ndian joint stoc( ban( was the Oudh Commercial *an(& established in 0CC0 in 5ai+abad- $t failed in 0D:C- The neEt was the Punjab National *an(& established in .ahore in 0CD:& which has sur"i"ed to the present and is now one of the lar est ban(s in $ndia-

Around the turn of the 3Bth Centur#& the $ndian econom# was passin throu h a relati"e period of stabilit#- Around fi"e decades had elapsed since the $ndian 8utin#& and the social& industrial and other infrastructure had impro"ed- $ndians had established small ban(s& most of which ser"ed particular ethnic and reli ious communitiesThe presidenc# ban(s dominated ban(in in $ndia but there were also some eEchan e ban(s and a number of $ndian joint stoc( ban(s- All these ban(s operated in different se ments of the econom#- The eEchan e ban(s& mostl# owned b# Europeans& concentrated on financin forei n trade- $ndian joint stoc( ban(s were enerall# under capitalised and lac(ed the eEperience and maturit# to compete with the presidenc# and eEchan e ban(s- This se mentation let .ord Cur+on to obser"e& "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." The period between 0DB6 and 0D00& saw the establishment of ban(s inspired b# the ,wadeshi mo"ement- The ,wadeshi mo"ement inspired local businessmen and political fi ures to found ban(s of and for the $ndian communit#- A number of ban(s established then ha"e sur"i"ed to the present such as *an( of $ndia& Corporation *an(& $ndian *an(& *an( of *aroda& Canara *an( and Central *an( of $ndiaThe fer"or of ,wadeshi mo"ement lead to establishin of man# pri"ate ban(s in 1a(shina ;annada and !dupi district which were unified earlier and (nown b# the name S"ut4 C2!2)2 % ,outh ;anara ) district- 5our nationali+ed ban(s started in this district and also a leadin pri"ate sector ban(- <ence undi"ided 1a(shina ;annada district is (nown as HCradle of $ndian *an(in H1urin the 5irst World War %0D09I0D0C) throu h the end of the ,econd World War %0D7DI 0D9:)& and two #ears thereafter until the independence of $ndia were challen in for $ndian ban(in - The #ears of the 5irst World War were turbulent& and it too( its toll with ban(s simpl# collapsin despite the $ndian econom# ainin indirect boost due to warArelated economic acti"ities- At least D9 ban(s in $ndia failed between 0D07 and 0D0C as indicated in the followin table@

5 N A P2id-u8 C28it21 e u 9R3* L2/43: 2 m t ) b 4 3 e " ) i " 7 6 e d b 2 . ! 2 / 8 3 i t t 2 4 1 2 t 9 R 6 3 2 * i 1L e 2 d / 4 3 : 0 0 3 7:

D 3 2 0 9 7 0 9 2 0BD D 3 0 0 B 9 0 0 : D 0 6 0 : 0 0 3 9 D 7 0 0 6 0 D 2 3: D 6 0 2 0 2 3 0 D B 0 D C

P"3t-I!de8e!de!.e

The partition of $ndia in 0D92 ad"ersel# impacted the economies of Punjab and West *en al& paral#+in ban(in acti"ities for months- $ndiaFs independence mar(ed the end of a re ime of the .aisse+Afaire for the $ndian ban(in - The /o"ernment of $ndia initiated measures to pla# an acti"e role in the economic life of the nation& and the $ndustrial Polic# Resolution adopted b# the o"ernment in 0D9C en"isa ed a miEed econom#- This resulted into reater in"ol"ement of the state in different se ments of the econom# includin ban(in and finance- The major steps to re ulate ban(in included@

The Reser"e *an( of $ndia& $ndiaFs central ban(in authorit#& was established in April 0D7:& but was nationali+ed on 0 Januar# 0D9D under the terms of the Reser"e *an( of $ndia %Transfer to Public Ownership) Act& 0D9C %R*$& 3BB:b)-

$n 0D9D& the *an(in Re ulation Act was enacted which empowered the Reser"e *an( of $ndia %R*$) Hto re ulate& control& and inspect the ban(s in $ndiaHThe *an(in Re ulation Act also pro"ided that no new ban( or branch of an eEistin ban( could be opened without a license from the R*$& and no two ban(s could ha"e common directors-

ROLE OF SMALL BUSINESS IN NATIONAL ECONOM5 ,mall business has pla#ed a "er# crucial role in transformin the $ndian econom# from a job

bac(ward a rarian econom# to its present stature- $ts benefits ran e from creatin

opportunities for millions of people& includin man# with low le"els of formal education- $t hasnurtured the inherent entrepreneurial spirit in far flun corners of the nation resultin in the rowth and de"elopment of all re ions- $t has been instrumental in raisin the standard of li"in of the multitudes- The small scale sector has contributed specificall# in the followin areas@ 0- Emplo#ment /eneration@ The ,,$ sector in $ndia is the second lar est manpower emplo#er in the countr# neEt onl# to the a riculture sector- $ndia is characteri+ed b# abundant labour suppl# and is pla ued b# unemplo#ment and underemplo#ment- !nder these circumstances the smallA scale sector is a boon -5or e"er# Rs-B-0million of in"estment& the smallAscale sector pro"ides jobs to 36 people as compared to 9 jobs created in the lar eAscale sector-

3- .ow $nitial Capital $n"estment@ Another feature of the $ndian econom# and most of the de"elopin economies is the scarcit# of capital- The modern lar e Ascale sector requires colossal in"estments whereas the small sector is just the opposite- Not onl# is the emplo#ment capital ratio hi h for the ,,$ but the output capital ratio is also hi h7- *alanced Re ional 1e"elopment@ 1ispersion of small business in all parts of the countr# helps in remo"in re ional imbalances b# promotin decentrali+ed de"elopment of industries- $t helps in industriali+ation of rural and bac(ward areas- $t also helps to reduce problems of con estion& pollution& housin & sanitation etc-37 9- Equitable 1istribution of $ncome@ This is a natural corollar# of the abo"e- When entrepreneurial talent is tapped in different re ions and areas the income is also distributed instead of bein concentrated in the hands of a few indi"iduals or business families:- Promotes $nterA,ectoral .in(a es@ ,,$ units are supplementar# and complementar# to lar e and medium scale units as ancillar# units- 8an# small units produce subAparts& assemblies& components and accessories for the lar eAscale sector especiall# in the electronic and automoti"e sectors6- EEports@ The most si nificant contribution of the ,,$ has been in the field of eEports- There has been a si nificant increase in the eEports from this sector of both traditional and nonA traditional oods includin jeweller#& Ornaments &leather& hand tools& en ineerin ware etc2- 1e"elopment of Entrepreneurship@ ,mall business taps the latent potential a"ailable locall#This wa# the# facilitate the spirit of enterprise& which results in o"erall rowth& and de"elopment of all the re ions ?sectors of the nationoods& soft

NEED AND SIGNIFICANCE OF THE STUD5

O*JECT$'E, A,,$/NE1 *4 T<E PROJECT 8ENTOR@A To stud# the profile of ,tate *an( of $ndia To stud# the theoretical concept of mar(etin of smallAscale and medium industries and commercial loans products To (now different schemes pro"ide b# the or ani+ation to costumers To ather information about eEtent of satisfaction of the costumers which respecti"e schemes pro"ided b# or ani+ation To anal#sis the information measures To re"iew o"erall mar(etin acti"ates performed b# the or ani+ation To understand facilities pro"ided b# ,*$ and ,*$ loan pro"idin schemes $nformin about "arious schemes to the costumers METHOLOG5 OF STUD5# The metholo # used for this stud# "arious sources the# are@A Primar# data source ,econdar# data source PRIMAR5 DATA SOURCES#This data includes personnel discussion and inter"iews with "arious customers of ,*$ ban( and others ban(s -the data was collected throu h the questionnairesJ with a sample si+e of 2: members SECONDAR5 DATA SOURCES#,econdar# data consist of information that alread# eEist some where-The data collected throu h secondar# scoures includin both internal and eEternal sources -$ntenal scources include athered from costumers and to i"e some su esti"e

project mentor in branch -the eEternal sources include information adobted from boo(s& internet etcK LIMITATIONS#Time is major constraint This stud# is limited to maEimum business The sample si+e is limited to 2: The respondents repla# is based on their interest and mood An# bias in the information ma# lead to limitation The period of 0B wee(s is not enou h to co"er all the aspects

PERIOD OF STUD5#The period of stud# is 0B wee(s startin from 3nd ma# to 0:th Jul#

C<APTER 3 INDUSTR5 ORGANISATIONAL PROFIL B)ie6 8)"6i1e "6 ") 2!i72ti"!#St2te B2!/ "6 I!di2 %SBI) is a multinational ban(in and financal ser"ices compan# based in $ndia- $t is a o"ernment owned or anisation with its headquarters in8umbi maharastra- As of 1ecember 3B03& it had assets of !,L:B0 billion and 0:&BB7 branches& includin 0:2 forei n offices& ma(in it the lar est ban(in and financial ser"ices compan# in $ndia b# assetsThe ban( traces its ancestr# to *ritish $ndia& throu h the $mperial *an( of $ndia& to the foundin in 0CB6 of the *an( of Calcutta& ma(in it the oldest commercial ban( in the $ndian ,ubcontinent- *an( of 8adras mer ed into the other two presidenc# ban(sM*an( of Calcutta and *an( of *omba#Mto form the $mperial *an( of $ndia& which in turn became the ,tate *an( of $ndia- /o"ernment of $ndia nationali+ed the $mperial *an( of $ndia in 0D::& with Reser"e *an( of $ndia ta(in a 6BN sta(e& and renamed it the ,tate *an( of $ndia- $n 3BBC& the o"ernment too( o"er the sta(e held b# the Reser"e *an( of $ndia- ,*$ was ran(ed 3C:th in the 5ortune /lobal :BB ran(in s of the worldFs bi est corporations for the #ear 3B03,*$ pro"ides a ran e of ban(in products throu h its networ( of branches in $ndia and o"erseas& includin products aimed at nonAresident $ndians %NR$s)- ,*$ has 09 re ional hubs and :2 Oonal Offices that are located at important cities throu hout the countr#,*$ is a re ional ban(in behemoth and has 3BN mar(et share in deposits and loans amon $ndian commercial ban(sThe ,tate *an( of $ndia was named the 3Dth most reputed compan# in the world accordin to 5orbes 3BBD ran(in s and was the onl# ban( featured in the Htop 0B brands of $ndiaH list in an annual sur"e# conducted b# *rand 5inance and The Economic Times in 3B0B-The roots of the ,tate *an( of $ndia lie in the first decade of 0Dth centur#& when the *an( of Calcutta& later renamed the *an( of *en al& was established on 3 June 0CB6- The *an( of *en al was one of three Presidenc# ban(s& the other two bein the *an( of *omba# %incorporated on 0: April

0C9B) and the *an( of 8adras %incorporated on 0 Jul# 0C97)- All three Presidenc# ban(s were incorporated as joint stoc( companies and were the result of the ro#al charters- These three ban(s recei"ed the eEclusi"e ri ht to issue paper currenc# till 0C60 when with the Paper Currenc# Act& the ri ht was ta(en o"er b# the /o"ernment of $ndia- The Presidenc# ban(s amal amated on 32 Januar# 0D30& and the reAor anised ban(in entit# too( as its name $mperial *an( of $ndia- The $mperial *an( of $ndia remained a joint stoc( compan# but without /o"ernment participationPursuant to the pro"isions of the ,tate *an( of $ndia Act of 0D::& the Reser"e *an( of $ndia& which is $ndiaFs central ban(& acquired a controllin interest in the $mperial *an( of $ndia- On 7B April 0D::& the $mperial *an( of $ndia became the ,tate *an( of $ndia- The o"ernment of $ndia recentl# acquired the Reser"e *an( of $ndiaFs sta(e in ,*$ so as to remo"e an# conflict of interest because the R*$ is the countr#Fs ban(in re ulator# authorit#$n 0D:D& the o"ernment passed the ,tate *an( of $ndia %,ubsidiar# *an(s) Act& which made ei ht state ban(s associates of ,*$- A process of consolidation be an on 07 ,eptember 3BBC& when the ,tate *an( of ,aurashtra mer ed with ,*$,*$ has acquired local ban(s in rescues- The first was the *an( of *ehar %est- 0D00)& which ,*$ acquired in 0D6D& to ether with its 3C branches- The neEt #ear ,*$ acquired National *an( of .ahore %est- 0D93)& which had 39 branches- 5i"e #ears later& in 0D2:& ,*$ acquired ;rishnaram *aldeo *an(& which had been established in 0D06 in /walior ,tate& under the patrona e of 8aharaja 8adho Rao ,cindia- The ban( had been the Dukan ichadi& a small mone#lender& owned b# the 8aharaja- The new ban(s first mana er was Jall N- *roacha& a Parsi- $n 0DC:& ,*$ acquired the *an( of Cochin in ;erala& which had 03B branches- ,*$ was the acquirer as its affiliate& the ,tate *an( of Tra"ancore& alread# had an eEtensi"e networ( in ;eralaThe ,tate *an( of $ndia and all its associate ban(s are identified b# the same blue keyhole lo oThe ,tate *an( of $ndia wordmar( usuall# has one standard t#peface& but also utilises other t#pefacesSt)u.tu)e Cu))e!t B"2)d "6 Di)e.t")3

As on 09 Januar# 3B07& there are fifteen members in the ,*$ board of directors@A

Pratip Chaudhuri %Chairman) <emant /- Contractor %8ana in 1irector) 1iwa(ar /upta %8ana in 1irector) A- ;rishna ;umar %8ana in 1irector) ,- 'is"anathan %8ana in 1irector) ,- 'en(atachalam %1irector) 1- ,undaram %1irector) Parthasarath# $#en ar %1irector) Thomas 8athew %1irector) ,-;- 8u(herjee %Officer Emplo#ee 1irector) Raji" ;umar %1irector) J#oti *hushan 8ohapatra %Wor(men Emplo#ee 1irector) 1eepa( Amin %1irector) <arichandra *ahadur ,in h %1irector)

I!te)!2ti"!21 8)e3e!.e The $sraeli branch of the ,tate *an( of $ndia located in Ramat /anAs of 3C June 3B07& the ban( had 0CB o"erseas offices spread o"er 79 countries- $t has branches of the parent in 8oscow& Colombo& 1ha(a& 5ran(furt& <on ;on & Tehran& Johannesbur & .ondon& .os An eles& 8ale in the 8aldi"es& 8uscat& 1ubai& New 4or(& Osa(a& ,#dne#& and To(#o- $t has offshore ban(in units in the *ahamas& *ahrain& and ,in apore& and representati"e offices in *hutan and Cape Town- $t also has an A1* in *oston& !,AThe Canadian subsidiar#& ,tate *an( of $ndia %Canada) also dates to 0DC3- $t has se"en branches& four in the Toronto area and three in the 'ancou"er area,*$ operates se"eral forei n subsidiaries or affiliates- $n 0DDB& it established an offshore ban(@ ,tate *an( of $ndia %8auritius)-

,tate *an( of $ndia %,-*-$-) *ranch at Tsim ,ha Tsui& <on ;on $n 0DC3& the ban( established a subsidiar#& ,tate *an( of $ndia %California)& which now has ten branches I nine branches in the state of California and one in Washin ton& 1-C- The 0Bth branch was opened in 5remont& California on 3C 8arch 3B00- The other ei ht branches in California are located in .os An eles& Artesia& ,an Jose& Cano a Par(& 5resno& ,an 1ie o& Tustin and *a(ersfield$n Ni eria& ,*$ operates as $N8* *an(- This ban( be an in 0DC0 as the $ndoANi erian 8erchant *an( and recei"ed permission in 3BB3 to commence retail ban(in - $t now has fi"e branches in Ni eria$n Nepal& ,*$ owns ::N of Nepal ,*$ *an(& which has branches throu hout the countr#- $n 8oscow& ,*$ owns 6BN of Commercial *an( of $ndia& with Canara *an( ownin the rest- $n $ndonesia& it owns 26N of PT *an( $ndo 8oneEThe ,tate *an( of $ndia alread# has a branch in ,han hai and plans to open one in Tianjin-P2Q $n ;en#a& ,tate *an( of $ndia owns 26N of /iro Commercial *an(& which it acquired for !,LC million in October 3BB:A33".i2te b2!/3 ,*$ has fi"e associate ban(sG all use the ,tate *an( of $ndia lo o& which is a blue circle& and all use the H,tate *an( ofH name& followed b# the re ional headquartersF name@

,tate *an( of *i(aner R Jaipur ,tate *an( of <#derabad ,tate *an( of 8#sore ,tate *an( of Patiala ,tate *an( of Tra"ancore

Earlier ,*$ had se"en associate ban(s& all of which had belon ed to princel# states until the o"ernment nationali+ed them between October 0D:D and 8a# 0D6B- $n tune with the first 5i"e

4ear Plan& which prioriti+ed the de"elopment of rural $ndia& the o"ernment inte rated these ban(s into ,tate *an( of $ndia s#stem to eEpand its rural outreach- There has been a proposal to mer e all the associate ban(s into ,*$ to create a Hme a ban(H and streamline the roupFs operations The first step towards unification occurred on 07 Au ust 3BBC when ,tate *an( of ,aurashtra mer ed with ,*$& reducin the number of associate state ban(s from se"en to siE- Then on 0D June 3BBD the ,*$ board appro"ed the absorption of ,tate *an( of $ndore- ,*$ holds DC-7N in ,tate *an( of $ndore- %$ndi"iduals who held the shares prior to its ta(eo"er b# the o"ernment hold the balance of 0-22N-) The acquisition of ,tate *an( of $ndore added 92B branches to ,*$Fs eEistin networ( of

branches- Also& followin the acquisition& ,*$Fs total assets will inch "er# close to the 0B trillion mar( %0B billion lon scale)- The total assets of ,*$ and the ,tate *an( of $ndore stood at D&DC0&0DB million as of 8arch 3BBD- The process of mer in of ,tate *an( of $ndore was completed b# April 3B0B& and the ,*$ $ndore branches started functionin as ,*$ branches on 36 Au ust 3B00 N"!-b2!/i! 3ub3idi2)ie3 Apart from its fi"e associate ban(s& ,*$ also has the followin nonAban(in subsidiaries@

,*$ Capital 8ar(ets .td ,*$ 5unds 8ana ement P"t .td ,*$ 5actors R Commercial ,er"ices P"t .td ,*$ Cards R Pa#ments ,er"ices P"t- .td- %,*$CP,.) ,*$ 15<$ .td ,*$ .ife $nsurance Compan# .imited ,*$ /eneral $nsurance

$n 8arch 3BB0& ,*$ %with 29N of the total capital)& joined with *NP Paribas %with 36N of the remainin capital)& to form a joint "enture life insurance compan# named ,*$ .ife $nsurance

compan# .td- $n 3BB9& ,*$ 15<$ %1iscount and 5inance <ouse of $ndia) was founded with its headquarters in 8umbaiOt4e) SBI 3e);i.e 8"i!t3 ,*$ has 32&BBBS AT8s %3:&BBBth AT8 was inau urated b# the then Chairman of ,tate *an( ,hri O-P- *hatt on 70 8arch 3B00& the da# of his retirement)G and ,*$ roup %includin associate ban(s) has about 9:&BBB AT8s- ,*$ has become the first ban( to install an AT8 at 1rass in the Jammu R ;ashmir ;ar il re ion- This was the *an(Fs 32&B73nd AT8 on 32 Jul# 3B03Re.e!t 202)d3 2!d )e." !iti"!3

*est Online *an(in Award& *est Customer $nitiati"e Award R *est Ris( 8ana ement Award %Runner !p) b# $*A *an(in Technolo # Awards 3B0B The *an( of the #ear 3BBD& $ndia %won the second #ear in a row) b# The *an(er 8a a+ine *est *an( I .ar e and 8ost ,ociall# Responsible *an( b# the *usiness *an( Awards 3BBD *est *an( 3BBD b# *usiness $ndia The 8ost Trusted *rand 3BBD b# The Economic Times 8ost Preferred *an( R 8ost preferred <ome loan pro"ider b# CN*C 'isionaries of 5inancial $nclusion *# 5$NO Technolo # *an( of the 4ear b# $*A *an(in Technolo # Awards ,;OC< Award 3B0B for 'irtual corporation Cate or# for its eApa#ment solution The *rand Trust Report@P03Q 00th most trusted brand in <industan-

M2<") ."m8etit") ,ome of the major competitors for ,*$ in the ban(in sector are $C$C$ *an(& <15C *an(& AEis *an(& *an( of $ndia& Punjab National *an( and *an( of *aroda- <owe"er in terms of a"era e mar(et share& ,*$ is b# far the lar est pla#er in the mar(et-

C<APTER 7

INTRODUCTION#Mi.)"-e!te)8)i3e @A A microAenterprise is one where the in"estment in plant and machiner# %their ori inal cost eEcludin land& buildin and items specified b# the 8inistr# of ,mall ,cale $ndustries in its notification No- ,-O- 0233%E) dated October :& 3BB6) does not eEceed Rs-3: la(hSm211 e!te)8)i3e#A small enterprise is one where the in"estment in plant and machiner# %see abo"e) is more than Rs-3: la(h but does not eEceed Rs-: croreMedium e!te)8)i3e#A medium enterprise is one where the in"estment in plant and machiner# %see abo"e) is more than Rs-: crore but does not eEceed Rs-0B croreThe definition of 8,8Es in the ser"ice sector is@

8icroAenterprise@ $n"estment in equipment does not eEceed Rs-0B la(h ,mall enterprise@ $n"estment in equipment is more than Rs-0B la(h but does not eEceed Rs-3 crore 8edium enterprise@ $n"estment in equipment is more than Rs-3 crore but does not eEceed Rs-: crore

T#pes of small scale industries 8icro industries Ancillar# industries ,er"ice industries

5eeder industries M2)/eti! "6 3m211 3.21e 2!d medium I!du3t)ie3 2!d ."mme).i21 1"2! 8)"du.t3 The 5iscal commission /o"ernment of $ndia& new 1elhi 0D:B& for the first time defined a ,mall I scale industr# as& one which is operated mainl# with hired labor usuall# 0B to :B hands The small scale industries board in 0D:: defined&> small scale industr# as a unit emplo#in less than :B emplo#ees if usin power and less than 0BB emplo#ees if not usin power and with a capital asset not eEceedin Rs : la(hs The new polic# initiati"e in 0DDDA3BBB defined small scale industr# as a unit en a ed in manufacturin &repairin & processin and preser"ation of oods ha"in in"estin in plant and machiner# at an ori inal cost not eEceedin Rs 0BB la(hs 5or small scale industries &the plannin commission of $ndia uses term ="illa e an small scale industr# and the traditional cotta e and house hold industries

Sm211 S.21e Se.t") 0- The ,mall ,cale ,ector is the natural habitat of entrepreneurs- 8ost entrepreneurs start small and then nurture their units into lar e industries- The ,,$ ,ector pro"ides an opportunit# for them to hone their s(ills and talents& to eEperiment& to inno"ate and transform their ideas into oods and ser"ices needed b# the societ#- O"er the last siE decades the ,mall ,cale $ndustr# sector has emer ed as a hi hl# "ibrant and d#namic sector- $t has acquired a prominent place in the socioeconomic de"elopment of the countr#- 8ostl# this sector eEhibited positi"e rowth trends e"en durin periods when other sectors of the econom# eEperienced either ne ati"e or nominal rowth- Toda# this sector accounts for D: percent of the industrial units& pro"ides nearl# CB percent of manufacturin emplo#ment and contributes around 7: percent of eEports- $t produces 2:BB items and pro"ides emplo#ment to more than 0D: la(h 02

persons- $t is a wellAreco ni+ed fact that a "ibrant smallAscale sector holds the (e# to economic prosperit# in an econom# li(e $ndiaProfile of ,,$ ,ector in $ndia T D:N of $ndustrial !nits in the Countr# T 7D-D3N of 'alue Added in the 8anufacturin ,ector T 79-3DN of National EEports T 6-C6N of /ross 1omestic Product T Emplo#ment To 0D7 .a(h Persons T Production of O"er 2:BB $tems in the $ndustrial ,ector T 3DC $tems Reser"ed for EEclusi"e 8anufacture T 7:C $tems for EEclusi"e Purchase from This ,ector OB+ECTIVES After oin throu h this lesson #ou should be able U To define a ,mall ,cale $ndustr#& Ancillar# $ndustr#& Tin# !nit& ,mall ,cale ,er"ice And *usiness Enterprises P,,,*EsQ& Women Enterprise and EEport Oriented !nitU 1ifferentiate *etween The Traditional and 8odern ,mall ,cale ,ector U EEplain the Nature and Characteristics of ,,$s U EEamine the Role of ,mall *usiness in National Econom# U 1escribe how ,mall $ndustries act as ,eedbed of Entrepreneurship -CONCEPTS AND DEFINITIONS $n most parts of the world the nomenclature used is ,mall and 8edium Enterprises %,8Es) and the criteria for definin include the number of emplo#ees and ?or the turno"er- $n $ndia the ,mall ,cale $ndustr# e"o(es different meanin s for different a encies and the financial institutions- 5or eEample for the purpose of EEcise and ,ales TaE EEemption& the turno"er alone is the determinin criterion- <owe"er in broader terms& currentl#& an ,,$ is defined in terms of in"estment ceilin s on the ori inal "alue of installed plant and machiner#THE SMALL SCALE INDUSTRIAL

UNDERTAKING An industrial underta(in in which the in"estment in plant and machiner#& whether held on ownership terms or on lease?hireApurchase basis& does not eEceed Rs- 0B million %Rs- 0 crore) is re arded as a smallAscale underta(in - These include manufacturin and ser"ice unitsANCILLAR5 INDUSTRIAL UNDERTAKING An industrial underta(in which is en a ed or is proposed to be en a ed in the manufacture or producin of parts& components& subAassemblies& toolin or intermediatesG or the renderin of ser"ices is termed as an ancillar# underta(in -The ancillar# underta(in is required to suppl# or render or propose to suppl# not less than :B percent of its production or ser"ices& as the case ma# be& to one or more other industrial underta(in s as the case ma# be- The in"estment in plant and machiner#& whether held on ownership basis or on lease or on hire purchase& should not eEceed Rs- 0B million- O"er the #ears the followin subAsectors ha"e been identified within the o"erall smallAscale sector@ TIN5 ENTERPRISE A unit is treated as a tin# enterprise where the in"estment in plant and machiner# does not eEceed Rs- 3-: million %Rs- 3: .a(hs) irrespecti"e of the location of the unit- 8an# shops& schools& parlous& Photostat and ,T1 booths in #our "icinit# are all eEamples of tin# unitsSMALL SCALE SERVICE AND BUSINESS ENTERPRISE =SSSBES> An industr# related ser"ice?business enterprise with in"estment up to Re-B-: million %: .a(hs) in fiEed assets& eEcludin land and buildin & is treated as an ,,,*E- E- - ad"ertisin a encies& 8ar(etin consultanc#& Auto repair& ser"ices and ara es& Tailorin & 1es(top printin etc- The ser"ice sector has emer ed as the major se ment of the econom#?OMEN,S ENTERPRISES 0D A Women EntrepreneurJs Enterprise is termed as an ,,$ unit?industr#Arelated ser"ice or business enterprise& mana ed b# one or more women entrepreneurs in proprietar# concerns& or in which

she?the# indi"iduall# or jointl# ha"e a share capital of not less than :0 percent as partners?shareholders?directors of a pri"ate limited compan#?members of a cooperati"e societ#E@PORT ORIENTED UNIT =EOU> A unit with an obli ation to eEport at least 7B percent of its annual production b# the end of the third #ear of commencement of production and ha"in an in"estment ceilin up to Rs- 0B million %Rs- 0 crore) in plant and machiner# is termed as an eEport oriented ,,$ unit;e# Words ,,$& Ancillar# $ndustr#& Tin# Enterprise& ,,,*Es& WomenJs Enterprise& EO! $n"estment Ceilin s for ,mall ,cale $ndustries %3BB6) T#pe of ,,$ unit $n"estment limit %0 millionV 0B .a(hs) Remar(s ,mall ,cale $ndustr# Ancillar# Tin# Enterprise ,er"ice R *usiness Enterprise Women Enterprise EEport Oriented Rs 0B million Rs 0B million Rs 3-: million Rs B-: million Rs- 0B million Rs- 0B million <istorical cost of plant R machiner# At least :BN of its output should o to other industrial underta(in No location limits

No location limit :0N equit# holdin b# women Obli ation to eEport 7BN of production $n $ndia no separate definition of medium enterprises eEists and as such there is no specific definition of ,mall and 8edium Enterprises P,8Es-Q Administrati"el#& in the $ndian conteEt& the industr# uni"erse is di"ided into three major se ments 5actor# ,ectorA .ar e ,cale unitsA %NonA ,,$s)G 3B 5actor# ,ectorA,mall ,cale units 'illa e and ,mall $ndustries sector P',$-Q The ',$ sector has further been di"ided into two broad subAsectors "i+@ The 8odern ,,$ ,ector and the Traditional ,,$ ,ector8odern ,mall ,cale $ndustries These co"er ,,$ units Pboth in the 5actor# and Non?5actor# sectorsQ and power loom units- ,uch units mostl# use power dri"en machiner# and possess superior production techniques- !nits in this subAsector are enerall# located in close proEimit# to lar e industrial centers or urban areasThese industries are mo"in awa# from the traditional products to (nowled eAbased productsTraditional ,mall ,cale $ndustries This sector comprises tin# and cotta e industr# se ments li(e handlooms& (hadi and "illa e industries& handicrafts& sericulture and sil(& rubber and coir- These units are laborA intensi"e& are enerall# located in rural and semiAurban areas and are artisan based- !suall# the capital in"ested is also nominal -Chec( #our pro ress@ 8atch the followin @ 8odern ,,$ ;hurja Potter# .ar e ,cale $ndustr# ,ona ,teerin suppl#in to 8aruti !d#o ,,$ .aundr# ,er"ices Tin# Paper 8anufacturin !nit with Rs- 0B million in"estment Ancillar# Photostattin !nit with Rs- B-: million in"estment ,,,*Es TE.CO Traditional ,,$ Call Centre

NATURE AND CHARACTERISTICS ,mallAscale industries ha"e certain unique features& which distin uish it from the .ar eAscale sector- ,ome of the salient characteristics of smallAscale businesses are i"en below0- Personal Character@ $n most small businesses the owners themsel"es are mana ers and so the# can operate independentl#- The# can i"e customi+ed ser"ice to their clients& which in man# cases is their !,P3- 5leEibilit#@ ,ince most small businesses are a oneAman show the# do not ha"e to o throu h a hierarch# to et permissions to ma(e chan es- ,mall business can respond quic(l# to en"ironmental trends- Nimbleness and a ilit# are 30 characteristics that allow small entrepreneurs to understand mar(et conditions and rapidl# respond to chan es7- .abour $ntensi"e@ ,mall businesses ha"e tremendous capacit# for emplo#ment eneration throu h their labour intensi"e techniques- ,mall businesses actuall# create more jobs than bi businesses- This feature of a smallAscale unit is of reat si nificance in a countr# li(e $ndia where the number of unemplo#ed people is phenomenal9- .ocal Area of Operation@ ,mall businesses are lar el# local in operationG howe"er the mar(et for its products ma# be local& re ional or e"en international:- ,hort /estation Period@ The capital in"estment in the small sector is enerall# low and the time ta(en for production to commence is also less- As a result of short estation period the units i"e quic( returns and consequentl# the pace of economic de"elopment quic(ensPROBLEMS OF SMALL BUSINESS While the small entrepreneurs can set up a unit e"en with less capital& enjo# quic( returns and ha"e the fleEibilit# to handle the "a aries of the mar(et& the# ha"e to face man# problems li(e the followin @ 0- Paucit# of 5inance@ The small entrepreneurs possess a wea( financial structure and find it eEtremel# difficult to obtain credit because of lac( of collateral securit#- This acts as a bi handicap& especiall# in the initial sta es& in most of their operations li(e their abilit# to hire the best wor(ers or to purchase the latest machiner# and equipment or to acquire sophisticated technolo #-

3- Poor a"ailabilit# of power and other infrastructure@ Thou h infrastructural bottlenec(s are problems for bi businesses too& #et the# can o"ercome these problems to some eEtent because of their financial stren th e- - eneratin their own power& or e"en influencin the o"ernment in framin its policies sometimes- The small entrepreneur on the other hand has to battle with them7- Obsolete Technolo #@ 8ost small businesses use old technolo ies because the# cannot afford better- As a result the qualit# of their oods is inferior and the cost of production is hi her than in case of other bi "entures- This has acted as a serious handicap especiall# after openin up of the econom# when the# ha"e had to compete with imported oods9- 8ar(etin Problems@ The small entrepreneur cannot suppl# standardi+ed oods of hi h qualit# and as a result cannot compete with products of lar e companies or 8NCs- The# usuall# do not ha"e a brand name or lo#alt#& as there are hardl# an# funds for ad"ertisin or sales promotionAll these increase their mar(etin woes- 33 :- Poor 8ana erial and Or ani+ational ,(ills@ usuall# the entrepreneur has to perform a multitude of di"erse functions in"ariabl# with out ha"in an# eEposure to professional education or formal trainin - The lar e sector on the other hand can hire the best qualified and trained people6- <i h $ncidence of ,ic(ness 2 out of 0B small businesses usuall# fall sic( and die within 7to: #ears- 8ain causes for this are a wron choice of product& poor mana erial s(ills& lac( of eEperience& poor qualit# of products because of the use of old technolo ies& etc- Apart from the abo"eAmentioned problems the small entrepreneur has wea( bar ainin power to deal with suppliers and financial institutions& has to face bureaucratic red tapism and is unable to in"est in R R 1- After the openin up of the econom# the small sector has been findin it eEtremel# difficult to compete with the hi h qualit# oods a"ailable in the mar(etROLE OF SMALL BUSINESS IN NATIONAL ECONOM5 ,mall business has pla#ed a "er# crucial role in transformin the $ndian econom# from a job

bac(ward a rarian econom# to its present stature- $ts benefits ran e from creatin

opportunities for millions of people& includin man# with low le"els of formal education- $t has nurtured the inherent entrepreneurial spirit in far flun corners of the nation resultin in the

rowth and de"elopment of all re ions- $t has been instrumental in raisin the standard of li"in of the multitudes- The small scale sector has contributed specificall# in the followin areas@ 0- Emplo#ment /eneration@ The ,,$ sector in $ndia is the second lar est manpower emplo#er in the countr# neEt onl# to the a riculture sector- $ndia is characteri+ed b# abundant labour suppl# and is pla ued b# unemplo#ment and underemplo#ment- !nder these circumstances the small scale sector is a boon -5or e"er# Rs-B-0million of in"estment& the smallAscale sector pro"ides jobs to 36 people as compared to 9 jobs created in the lar eAscale sector3- .ow $nitial Capital $n"estment@ Another feature of the $ndian econom# and most of the de"elopin economies is the scarcit# of capital- The modern lar e scale sector requires colossal in"estments whereas the small sector is just the opposite- Not onl# is the emplo#ment capital ratio hi h for the ,,$ but the output capital ratio is also hi h7- *alanced Re ional 1e"elopment@ 1ispersion of small business in all parts of the countr# helps in remo"in re ional imbalances b# promotin decentrali+ed de"elopment of industries- $t helps in industriali+ation of rural and bac(ward areas- $t also helps to reduce problems of con estion& pollution& housin & sanitation etc- 37 9- Equitable 1istribution of $ncome@ This is a natural corollar# of the abo"e- When entrepreneurial talent is tapped in different re ions and areas the income is also distributed instead of bein concentrated in the hands of a few indi"iduals or business families:- Promotes $nterA,ectoral .in(a es@ ,,$ units are supplementar# and complementar# to lar e and medium scale units as ancillar# units- 8an# small units produce subAparts& assemblies& components and accessories for the lar e Ascale sector especiall# in the electronic and automoti"e sectors6- EEports@ The most si nificant contribution of the ,,$ has been in the field of eEports- There has been a si nificant increase in the eEports from this sector of both traditional and nonA traditional oods includin jeweller#& arments &leather& hand tools& en ineerin etc2- 1e"elopment of Entrepreneurship@ ,mall business taps the latent potential a"ailable locall#This wa# the# facilitate the spirit of enterprise& which results in o"erall rowth& and de"elopment of all the re ions ?sectors of the nationoods& soft ware

T5PES OF LOANS FOR S*M*E

CORPORATE LOAN#Det2i13 T2) et G)"u8 EEistin and new companies?partnership?proprietor firms en a ed in manufacturin acti"it#Pu)8"3e On oin capital eEpenditure? technolo # upA radation? reno"ation& Repa#ment of hi h cost debt& 'R, scheme& acquisition of trademar(s& patents& shorin up NWCF2.i1ity Clean Term .oan Au2!tum "6 Fi!2!.e U 8inimum Rs 3: .acs U 8aEimum Rs 0B Crores for non corporate borrowers U No cap for corporate borrowers I!te)e3t R2te At least one step hi her than the applicable rate as per internal ratin Se.u)ity Primar# ,ecurit#@ Char e on the assets created from financial assistanceCollateral@.and& buildin etc- Personal /uarantee of Promoters? Partners? ProprietorM2) i! Not applicable S8e.i21 Fe2tu)e3 U !nits facin liquidit# crunch can a"ail this product for shorin up of wor(in capital funds U !nits plannin to launch new products and require to spend on ad"ertisement& promotion can a"ail this product-

DAL MILL PLUS#Det2i13 E1i ibi1ity U !nits en a ed in the acti"it# of 1al 8illin and ha"in credit ratin of ,*AD and abo"e as per the ban(Fs ris( assessmentU !nits must be profit ma(in U New established units are also eli ible Pu)8"3e U Acquisition of machiner#& moderni+in the factor# or settin up of additional facilitiesU Wor(in capital needs F2.i1ity U Term loan U Wor(in capital%5und *ased R Non fund based facilities) U ,8E credit plus Au2!tum "6 Fi!2!.e U Term loan is based on project cost U Wor(in capital@ Need based limit without an# upper ceilin M2) i! U Term loan 0:N to 3:N U Wor(in capital 0:N to 3:N I!te)e3t R2te $nterest is floatin and lin(ed to *ase Rate& dependin upon the si+e of the limit and "alue of collateral securit#Re82yme!t Pe)i"d U Term loan A between : to 2 #ears eEcludin the moratorium period of 03 monthsU Wor(in capital loan for 03 months subject to satisfactor# conduct of account- The limit is renewable after 03 monthsSe.u)ity UPrimar# @ <#pothecation?Pled e o"er assets created out of *an( finance U 5or loans o"er 0B la(hs A Equitable mort a e of propert#?tan ible securit

D".t") P1u3#T2) et G)"u8 W8edical practitioners of an# discipline& promoters of hospitals& nursin homes& patholo ical clinics& pol#clinics& XAra# labs& etcPu)8"3e WTo finance qualified medical practitioners W5or bu#in equipments %5or dentists& the loan also co"ers dental implants besides equipmentsG for orthopaedists& the loan also co"ers "arious replacements? implants for hip? (nee? shoulder? spine etc-) W,ettin up clinic& nursin home& patholo # labs& dru store& ambulance& computers& "ehicles& etc WEEpansion? reno"ation? moderni+ation of eEistin premises Ty8e "6 62.i1ity WTerm .oan Cash Credit Au2!tum "6 6i!2!.e W8aEimumA Rs 0B Crores subject to certain conditions- 5or indi"iduals and proprietors maEimum is Rs-: Crores W,ub ceilin for wor(in capital at A A 0BN of total loan amount for upto Rs-0 crore:N of total loan amount for abo"e Rs-0 crore

W5or Non Allopathic doctors %!nani& A#ur"edic& <omeopathic)@ 8aEimum of Rs-0B lacs of which a sub ceilin for wor(in capital limits at A 0BN of total loan amountM2) i! !p to Rs- 0B lacs@ 0:N WAbo"e Rs-0B lacs upto Rs-: crs@ 3BN WRs-: crs- I Rs-0B crs@ 3:NR2te "6 I!te)e3t W$nterest is floatin and lin(ed to *ase RateY-

Re82yme!t W8aEimum period is : to 2 #ears dependin upon the purposeP)".e33i! C42) e3B U86)"!t 6ee W:BN of normal rate Se.u)ity WPrimar# ,ecurit#A <#pothecation of assets financed b# the *an( WCollateral@ o 5or loan up to Rs-3: lacs@ No tan ible collateral securit#- .oan to be co"ered under C/T8,E uarantee schemeo 5or loans abo"e Rs-3: lacs@ tan ible securit# for at least 3:N of the loan amount<owe"er& eli ible loans abo"e Rs-3: lacs and upto Rs-0 Crore ma# be co"ered under C/T8,E uarantee scheme I!3u)2!.e WThe assets created out of *an(Js finance are to be insured for the full "alue-

RENT PLUS#T2) et G)"u8 WOwners of lar e commercial? office spaces rented out to lar e corporate& 8NCs& ban(s& P,!s etcE1i ibi1ity $ndi"iduals? partnership firms? corporates Pu)8"3e WTo meet liquidit# mismatches Ty8e "6 62.i1itie3 WTerm .oan Au2!tum "6 Fi!2!.e @ W8inimum .oan amount is Rs :B&BBB?A W8aEimum .oan amount is Rs 0B-BBCr M2) i! W9BN R2te "6 I!te)e3t W$nterest is floatin and lin(ed to *ase Rate Se.u)ity WPrimar#A Assi nment of rent recei"ables- Power of attorne# with the lessee to be obtained WCollateralA Equitable 8ort a e on buildin a ainst the rentals of which the loan would be sanctioned or an# other acceptable propert# of similar "alueI!3u)2!.e WThe propert# to be insured for the full "alue-

SBI SHOPPE#T2) et G)"u8 WPresent and prospecti"e owners of shops? offices? showArooms? trainin centres? ser"ice centres? ara es? offices for Chartered Accountants ? Consultants E1i ibi1ity W$ndi"iduals ?firms ? partnerships ? trusts ? franchisees Pu)8"3e WPurchase of new?old shops?establishments?offices W8oderni+ation?eEpansion of establishments?shops& etc WAll furniture?fiEtures& electrical fittin s and other accessories required for shops?showrooms?officesTy8e "6 62.i1itie3 WTerm .oan Au2!tum "6 Fi!2!.e @ W8aEimum of Rs-3B .acs M2) i! W3:N for purchase of new propert# W9BN in respect of purchase of old propert#R2te "6 I!te)e3t W$nterest is floatin and lin(ed to *ase RateYRe82yme!t Pe)i"d W8aEimum 2 #ears includin moratorium period of 6 monthsSe.u)ity WPrimar#A <#pothecation ? pled e ? mort a e ? assi nment of the assets purchased out of *an(Fs finances includin nonAindustrial assetsI!3u)2!.e

WThe assets created out of *an(Js finance are to be insured for the full "alue-

SCHOOL PLUS#T2) et G)"u8 WPrimar# and <i her secondar# schools W/raduation& !nderA/raduation and Post /raduation colle es E1i ibi1ity W/o"ernment Aided ,chools? Colle es WPri"ate schools? colle es W,chools? colle es run b# trusts of ood standin WTechnical institutes reco ni+ed b# A$CTE ? N*A ? 8C$ Pu)8"3e W.oan for purchase of land for buildin ? pla# round& construction of school buildin ? auditorium& purchase of computer& boo(s& furniture& repair? reno"ation of eEistin buildin & purchase of sports equipment etc Ty8e "6 62.i1itie3 WTerm .oan Au2!tum "6 Fi!2!.e @ WNo cap M2) i! W0:N of the project cost R2te "6 I!te)e3t W$nterest is floatin and lin(ed to *ase RateYRe82yme!t W.oan amount up to Rs-3 lacs I Repa#able in 76 equated monthl# installments W.oan amount from Rs-3 lacs to Rs-: lacs I Repa#able in 6B equated monthl# installments-

W.oan amount abo"e Rs-: lacs I Repa#able in C9 equated monthl# installmentsSe.u)ity WPrimar#A <#pothecation of Assets purchased out of *an( finance WCollateral@ o Personal uarantee of Promoters? Trustees? an# other persons acceptable to *an(o 5or loans upto Rs 0B-BB lac& equitable mort a e of land and buildin & other immo"able assets or uarantor for 3BN of the loan amount- 5or loan abo"e this amount& equitable mort a e of other immo"able assets of the institute? uarantorI!3u)2!.e WThe assets created out of *an(Js finance are to be insured for the full "alue-

SME COLLATERAL FREE LOAN#Det2i13 E1i ibi1ity New and eEistin 8icro and ,mall Enterprises en a ed in 8anufacturin and ,er"ice sector- 5or 8anufacturin sector& ori inal in"estment in plant R machiner# should be upto Rs : crore and for ,er"ice sector& ori inal in"estment in equipment upto Rs 3 crorePu)8"3e U Wor(in capital needs %5und *asedS Non 5und *ased)U Term loan for construction of *uildin & office& acquisition of machines ? equipments includin eEpansion and moderni+ation of the unitF2.i1ity U Cash Credit U Term .oan U .etter of Credit U *an( /uarantee Au2!tum "6 Fi!2!.e Total EEposure to the unit @ !pto Rs- 0-BB crore %All facilities WC& T. R N5* facilities) I!te)e3t R2te Attracti"e rates of interestY Se);i.e C42) e3 U concession in processin and ser"ice char esU Other char es as applicableSe.u)ity U Primar# ,ecurit#@A U Assets created out of ban( finance U EEistin assets of the borrower as per definition of C/T8,E

U No collateral U No third part# uarantee Re82yme!t Pe)i"d U Wor(in Capital %WC)@ One #ear& repa#able on demand- Wor(in capital limits will be renewed e"er# two #ear- <owe"er& performance of the unit and conduct of account will be re"iewed annuall# for continuation of limitsU Term .oan@ 8aEimum ,e"en 4ears includin moratorium period-

SME C)edit C2)d#E1i ibi1ity Customers of the followin se ment with satisfactor# trac( record for last 3 #ears W,mall industrial units W,mall retail traders WProfessionals R self emplo#ed W,mall business enterprises and transport operators Pu)8"3e To meet an# (ind of credit requirements includin purchase of shops& equipments Ty8e "6 F2.i1ity Cash Credit and?or Term .oan L"2! 2m"u!t 8aEimum A Rs- 0B lacs M2) i! 3BN R2te "6 I!te)e3t 5loatin and lin(ed to *ase RateYRe82yme!t Pe)i"d WTerm loan repa#able in maEimum : #ears in suitable installments WWor(in capital loan sanction "alid for 7 #ears with annual re"iew subject to satisfactor# conduct of loan accounts

Se.u)ity Primar#@ <#pothecation of stoc( in trade& recei"ables& machiner#& office equipment WCollateral@ Nil %Eli ible acti"ities ma# be co"ered under C/T8,E uarantee scheme) I!3u)2!.e WThe assets created out of *an(Js finance are to be insured for the full "alue S8e.i21 6e2tu)e3 WThis product is for the units unable to pro"ide elaborate financial data sou ht b# ban(s for assessin credit needs W,toc( statements for wor(in capital loans are to be submitted once in a #ear onl# WWor(in capital sanctioned is "alid for 7 #ears subject to annual re"iew The Term .oan component should be repa#able in a maEimum of : #ears in suitable instalments-

SME OPEN TERM LOAN#Det2i13 F2.i1ity U The product is a preAappro"ed term loan facilit# which can be disbursed o"er a period of 03 months dependin upon requirement of the unitU The units et comfort of preappro"ed sanction to plan their capital eEpenditure and ne otiate with suppliers of machiner# to finali+e the best possible terms and then et the loan disbursedT2) et G)"u8 U All units under manufacturin sectorU !nder ,er"ice sector@ Educational $nstitution& <ealthcare $ndustr# %<ospital& 1octors& Patholo ical .abs& and Nursin <ome)& <ospitalit# $ndustr# %<otels& Restaurants& and <ealth Club etc)& and Transport Operators Pu)8"3e An# enuine commercial purposes in line with re ular business acti"it# of the customer- These would include U EEpansion and moderni+ationU ,ubstitution of hi h cost debts? hi h cost term debts of other ban(s?5$sU 1esi n and introduction of new la#Aouts in the factor# to enhance producti"it#U !p radation of technolo # R ener # conser"ation schemes? machiner#U Acquisition of software& hardware& consumable tools& ji s& fiEtures& "ehicles& equipment & furniture upholster# etc-

U Acquisitions of $,O R other similar certificationsU 'isits abroad for acquirin technolo #& finali+in business deals& participatin in eEhibitions? fairs for mar(et promotion etcU RR1 acti"ities of the units in o"erall business de"elopment objecti"e Au2!tum "6 Fi!2!.e 8aEimum Rs 3-:B crore for both manufacturin and ser"ices enterprises& subject to credit ratin and purpose of the loanM2) i! 8inimum 0BN Re82yme!t Pe)i"d 7A : #earsI!te)e3t R2te 5loatin rate lin(ed to *ase RateSe.u)ity U Primar# ,ecurit#@ <#pothecation ? pled e of the assets proposed to be purchasedout of the term loanU Collateral ,ecurit#@ A EEtension of char e o"er current assets& fiEed assets& and other eEistin collateral if an#A Personal uarantees of propreitor?partners?promoters-

SME SMART SCORE#Det2i13 E1i ibi1ity ,cheme is a"ailable to small and medium enterprise units en a ed in manufacturin & trade or ser"icesPu)8"3e Wor(in Capital requirements R Purchase of fiEed assets li(e land& buildin & plant R machiner#F2.i1ity Wor(in capital R Term loan Au2!tum "6 Fi!2!.e U 5or manufacturin units total limits upto Rs :B lacs U 5or trade R ser"ices units total limits upto Rs 3: la(hsM2) i! 3:N for wor(in capital and 77N for Term .oan I!te)e3t R2te 5loatin Rate and lin(ed to *ase Rate Re82yme!t Pe)i"d U Term loan to be repaid in : #ears eEcludin moratorium not eEceedin 6 months U Wor(in Capital loan to be renewed e"er# two #ears and re"iewed annuall# subject to satisfactor# conduct of accountSe.u)ity U Primar#@ <#pothecation of stoc(s and assets financed b# *an( U Collateral@ EEtension of char e o"er current assets& fiEed Assets and othereEistin collateral& Personal uarantees of the promoters?partners of the unitI!3u)2!.e

The assets created out of *an(Zs finance are to be insured for the full "alueS8e.i21 Fe2tu)e3 U A simplified loan application format U Concessionar# rate of interest U [uic( and hassleAfree loan sanction process

STREE SHAKTI SCHEME


Det2i13 E1i ibi1ity 0- Women Entrepreneurs in U Retail trade U *usiness enterprises U Professionals and self emplo#ed li(e 1octors& *eaut# Parlour operators etcU ,mallAscale units or tin# units3- The units run b# women entrepreneur should under o E1P %Entrepreneurial de"elopment pro ramme) trainin conducted b# state le"el a enciesF2.i1ity Term loan and wor(in capital loan Au2!tum "6 Fi!2!.e U Retail Traders@ Rs- :BBBB to Rs-3 .acs U *usiness enterprises@ Rs- :BBBB to Rs-3 .acs U Professionals@ Rs- :BBBB to Rs-3: .acs U ,,$@ Rs- :BBBB to Rs-3: .acs M2) i! Reduced mar in I!te)e3t R2te 5loatin rate and lin(ed to base rateSe.u)ity U Primar#@ ,toc(s ? 8achiner# purchased out of ban(s finance U Collateral@No collaterals for ,,$ .oans up to Rs-0B .ac- Eli ible units ma# be co"ered under C/T8,E %Credit /uarantee 5und rust for 8icro and ,mall

Enterprises)& for others& collaterals should be pro"ided-

TRADERS EAS5 LOAN 9TEL:#T2) et G)"u8 \ .oan to traders and persons en a ed in ser"ice sector a ainst mort a e of propert#E1i ibi1ity \ EEistin customers with a satisfactor# trac( record\ New connections includin ta(eAo"er\ 5irst eneration entrepreneurs as well as promoters of eEistin units Pu)8"3e \ .oan can be a"ailed for normal da# to da# business requirements or for purchase of equipments? fiEed assetsTy8e "6 62.i1itie3 \ Cash Credit? Term .oan? 1emand .oan Au2!tum "6 Fi!2!.e @ \ !pto Rs :-BB Cr M2) i! \ 7:N of the propert# "alue R2te "6 I!te)e3t \ Attracti"e rate of interest- $nterest rate is lin(ed to *ase Rate Se.u)ity \ Primar#A <#pothecation of stoc(s and recei"ables& and ?or assets acquired of ban( finance\ CollateralA Tan ible securit# of minimum of 0:9N of loan amount in the form of Equitable 8ort a e of land and buildin I!3u)2!.e

\ The assets created out of *an(Js finance are to be insured for the full "alueS8e.i21 6e2tu)e3 \ ,implified Assessment \ !ser friendl#

?EAVERS CREDIT CARD#T2) et G)"u8 Wea"ers and ancillar# wor(ers in"ol"ed in wea"in acti"ities in the handloom sector E1i ibi1ity U All wea"ers and ancillar# wor(ers in"ol"ed in wea"in acti"ities U Preference will be i"en to wea"ers identified under Third Census of <andloom wea"ers conducted b# 1e"elopment Commissioner& 8inistr# of TeEtile as well as to wea"ers identified b# ,tate /o"ernments and wea"ers who ha"e formed societ#?,elf <elp /roup %,</s)?Joint .iabilit# /roups %J./s)U EEistin customers of ban( enjo#in credit facilit# and ha"in satisfactor# recordU Possession of Photo $d Card issued b# 1e"elopment Commissioner %<andloom) or the ,tate /o"ernment is a necessar# preAcondition for a"ailin this loanPu)8"3e 5or wor(in capital requirement as well as purchase of tools and equipment required for carr#in out wea"in acti"it#F2.i1ity Term loan and cash credit Au2!tum "6 Fi!2!.e !pto Rs 3 lacs M2) i! U !pto Rs 3:BBB@ Nil U Abo"e Rs 3:BBB@ 3BN

I!te)e3t R2te .in(ed to *ase RateRe82yme!t Pe)i"d U Term loan repa#able in 7 #earsU Cash credit limit to be renewed in 7 #ears with annual re"iew subject to satisfactor# conduct of accountSe.u)ity U Primar#@ <#pothecation of assets financed b# the *an(U Collateral@ Nil- Account will be co"ered under C/T8,E uarantee co"era eS8e.i21 Fe2tu)e3 U Cash support is bein offered to wea"ers in the followin forms A 8ar in mone# support up to Rs 93&BBB?A per wea"er and?or A $nterest subsid# up to 7N on *an( loan And?or A Reimbursement of one time uarantee fee as applicable %0N at present) and annual ser"ice char es as applicable %B-:BN at present) for a period upto 7 #ears pa#able for uarantee co"er under C/T8,EU New units are also eli ible U No need of financial statements for purpose of annual re"iew of sanctionU .oan Passboo( will be issued to borrower-

CHAPTER-(
PRATCIAL STUD5 ABOUT SME LOANS

C1233i6i.2ti"! "6 ."3tume)3@A


Table4.1 T N Percentage of customers y o p e . o o f f c c u u s s t t o o m m e e r r s s

$ D 03 n d i "

i d u a l s * 3 77-77 u : s i n e s s w 0 07-77 h B o l e s a l e r s , 0 07-77 m B a l l

s c a l e i n d u s t r i e s < 9 :-77 o s p i t a l s s 0 33-6C c 2 h o

o l s T C $'' " & t 2 1 3

Graph4.1

INTERPRETATION#Out of members sur"e#ed 03N of people are indi"iduals& 77-77N of people are business&07-77N are wholesaler&07-77Nare small scale industries&:-77N are hospitals&33-6CN are schools
Table4.2

C1233i6i.2ti"! "6 .u3t"me)3 "6 8ub1i. 3e.t") b2!/3#T N In percentage

y o p e o f o f c u c s u t s o t m o e m r e r i s n p u b l i c s e c t o r b a n

k s 9 13.63 $

n d i " i d u a l s
2 31.81 * 1 u

s i n e s s
9 13.63 w

h o l e s a l e

r s
6 9.09 ,

m a l l s c a l e i n d u s t r i e s
4 6.06 <

o s p i t

a l s
1 25.78 s 7 c

h o o l s
6 100 T 6 "

t 2 1 3
Graph4.2

INTERPRATION#-

Out of members sur"#ed 07-67N of people are indi"iduals &70-C0N of people are business&07-67N are wholesaler&D-BDNare small scale industries&6-B6N are hospitals&3:-2CN are schools

Table4. C1233i6i.2ti"! .u3t"me)3 "6 8)i;2te 3e.t") b2!/#N T In percentage y " p e " 6 o . f u 3 c u t " s t m e o m ) 3 e r i s ! 8 ) i ; 2 t e

3 e . t " ) b 2 ! / 3 0 0 $

n d i " i d u a l s
4 44.44 *

u s i n e s

s
1 11.11 w

h o l e s a l e r s
4 44.45 ,

m a l l s c a l e i n d u s t

r i e s
0 0 <

o s p i t a l s
0 0 ,

c h o o l s
! 100 T

" t 2 1 3

Graph4.

INT"#P#$TI%N&'&

Out of members sur"e#ed 99-99N of people are business&00-00N are wholesaler&99-9:Nare small scale industries-

TABLE (*(, Le! t4 "6 .u3t"me),3 "6 8ub1i. 3e.t") b2!/3


T ) I6 I$ In percentageTotal in percentage y e n n b p s to e s p o p + e e e o t r 1 r f h c * c 1 a e e * c n n y n o t e t y s * a a a e tg r g a u y e s e r m es e a r r s s ( I2 2 5 5 2 2.22100 n 2 5 d .. i2 5 v 2 5 i

d u a l s B 1 5 8 3 1 4.76100 u 2 7 8 s .. i1 0 n 4 9 e s s W 5 5 2 2 2 2.22100 h 5 2 o .. l5 2 e 5 2 s a l e r s S 2 3 3 5 1 6.66100 m 3 0 a . l3 l3 s c a

l e i n d u s t r i e s 2 5 2 5 0 100 o 0 0 s ! i t a l s S 5 2 1 7 0 100 c 9 2 0 h .. o 4 5 o 1 8 l s

ss

INT"#P#$TI%N"# $rom the a%ove ta%le &e o%serve that di''erent t(!es o' costumers o' !u%lic sector %an)s 'rom less than 5 (ears amon* them 22.22+ o' costumers are individuals 57.14+ are costumers %usiness 55.55+ costumers are schools. consumers o' !u%lic sector %an)s 'rom less than 5 (ears to 15 (ears amon* them 55.55+o' costumers are individuals. 38.09+are costumers are %usiness.22.22+ o' costumers are &holesalers 50+ o' costumers are hos!itals 50+ costumers are small scale industries and 50+ are schools $rom the a%ove ta%le &e o%serve that di''erent t(!es o' costumers o' consumers o' !u%lic sector %an)s 'rom a%ove 15 (ears amon* them 22.22+ o' costumers are individuals 4.76+ o' costumers are %usiness ,22.22+ are &holesalers 16.66+small scale industries

TABLE (*&
Type of customers in pri+ate sector banks
T ) I6 I$ In percentageTotal percentage y e n n b p s to e s p o p + e e e o t r 1 r f h c * c 1 a e e * c n n n u tt s * a a tg g o e e m e r s 0 0 0 0 0 0100 $

n d i " i d u a

l s
2 5 1 2 1 25100 * 0 5 u

s i n e s s
1 1 0 0 0 0100 w 0 h 0

o l e s a l e r s

3 7 1 2 0 0100 , 5 5 m

a l l s c a

l e i n d u s t r i e s
0 0 0 0 0 0100 <

o s p i t a l s
0 0 0 0 0 0100 s

c h o o l s

,hart 4.*

INT"#P#$TI%N"# $rom the a%ove ta%le &e o%serve that di''erent t(!es o' costumers o' !rivate sector %an)s 'rom less than 5 (ears amon* 50+ o' costumers are %usiness .100+ o' costumers &holesalers, 75+ o' costumers are small scale industries so ma-imum num%er o' costumers o' !rivate sector %an)s in %elo& 5 (ears are 50+ are %usiness and minimum are individuals, schools, hos!itals. $rom the a%ove ta%le &e o%serve that di''erent t(!es o' costumers o' !rivate sector %an)s that is 'rom industries that is 25+ are %usiness 6 to 15 (ears.25+ o' costumers are %usiness, and small scale $rom the a%ove ta%le &e o%serve that di''erent t(!es o'

costumers o' !rivate sectors %an)s 'rom the a%ove 15 (ears amon* them 25+ o' consumers

Table 4.6 #e-uirements of current account by +arious users T In percentage y N p o e . o o f f c p o e s o t p u l m e e r s 0 0 $

n d i "

i d u a l s
1 10 *

u s i n e s s
2 20 w

h o l e s a l e r s
3 30 ,

m a l l

s c a l e i n d u s t r i e s
0 0 <

o s p i t a l s
4 40 ,

c h o

o l s
1 100 T 0 "

t 2 1 3

,hart 4.6

I!te)8)et2ti"!#The abo"e table represents the requirements of current account b# "arious t#pes of users out of 6 t#pe of costumers &business people who require a current account constitute to 0BN-wholesalers people who require a current account constitute to 3BN small scale industries people who requires current account constitute to 7BN-school people who require a current account constitute to 9BN here we obser"e that maEimum people who requires current account are schools that 9BNschools and minimum is indi"iduals and hospitals-]
T 2

b 1 e ( * C #e-uirements of Pos machine by +arious users T N y o p e . o o f f p c e o s p t l u e m e r s In percentage

3 $

42.85

n d i " i d u a l s
1 * 14.28

u s i n e s s

0 w

h o l e s a l e r s

0 ,

m a l l s c a l e i n d u s t r i e s

2 <

28.57

o s p i t a l s
1 s 14.37

c h o o l s
. T 100

" t 2 1 3

,hart4..

I!te)8)et2ti"!#The abo"e table represent the requirements of pos machine b# "arious t#pes of users out of 6 t#pe of costumers indi"iduals are 93-C:N& business people who require a pos machine constitute to 09-3CN -wholesalersJ people who require a pos machine constitute to

BNs-mallscale industries people who require a pos machine constitute to BN -hospital people who require a pos machine constitute to3C-:2N schools people who require a pos machine constitute to 09-72N-here we obser"ed that maEimum people who requires pos machine are indi"iduals that 93-C:N and minimum is wholesalers and small scale industries people
Table4./ #e-uirements of cash cre0it limit by +arious users T N In percentage y o p e . o o f f p c e o o s p t l u e m e r s 0 0 $

n d i " i d u

a l s
3 50 *

u s i n e s s
2 33.33 w

h o l e s a l e r s
1 16.67 ,

m a l l s c

a l e i n d u s t r i e s
0 0 <

o s p i t a l s
0 0 s

c h o o l s

6 100 T

" t 2 1 3

,1$#T 4./ INT"#P#$TI%N'&

The abo"e table represent the requirements of cash credit limit b# "arious t#pes of users out of 6 t#pe of costumers business people who require cash credit limit constitute to :BN -wholesalersJ people who require a cash credit limit constitute to 77-77N &smallAscale industries people who require a cash credit limit constitute to 06-62N & here we obser"ed that maEimum people who requires cash credit limit are business that :BN and minimum is hospitals &indi"iduals and school
Table4.! #e-uirements of term loans by +arious users T N In percentage y o p e . o o f f p c e o o s p t l u e m e

r s 0 0 $

n d i " i d u a l s
1 20 *

u s i n e s s
2 40 w

h o l e s a l e

r s
1 20 ,

m a l l s c a l e i n d u s t r i e s
0 0 <

o s p i t

a l s
1 20 s

c h o o l s
* 100 T

" t 2 1 3

,1$#T 4.!

INT"#P#$TI%N'&

The abo"e table represent the requirements of term loans b# "arious t#pes of users out of 6 t#pe of costumers business people who requires a term loan constitute to 3BN-wholesale people who requires term loan constitute to 9BN-small scale industries people who require a team loan constitute to 3BN-school people who require a term loan constitute to 3BN here we obser"e that maEimum people who requires term loan are that 9BN wholesalers and minimum is indi"iduals &hospitalsTable4.10 #e-uirements of 232 facility by +arious users T N In percentage y o

p e . o o f f p c e o o s p t l u e m e r s 3 21.42 $

n d i " i d u a l s
2 14.28 *

u s i n e

s s
3 21.42 w

h o l e s a l e r s
2 14.28 ,

m a l l s c a l e i n d u s

t r i e s
0 0 <

o s p i t a l s
4 28.60 s

c h o o l s
1 100 T 4 "

t 2 1 3

,hart 4.10

INT"#P#$TI%N'&

The abo"e table represent the requirements of cash credit limit b# "arious t#pes of users out of 6 t#pe of costumers indi"iduals are 30-93N&business people who require a s m s facilit# constitute to 09-3CN-wholesalers people who require a s m s facilit# constitute to 30-93N small scale industries people who requires a s m s facilit# constitute to 09-3CN &school people who requires a s m s facilit# constitute to 3C-6BN here we obser"ed that maEimum people who requires s m s facilit# are that 3C-6BN schools and minimum is hospitals
Table 4.11 #e-uirements of internet by +arious users T N In percentage y o p e . o o f f p c e o o s p t l u e m e r s 3 30 $

n d i " i

d u a l s
1 10 *

u s i n e s s
0 0 W

h o l e s a l e r s
0 0 ,

m a l l

s c a l e i n d u s t r i e s
2 20 <

o s p i t a l s
4 40 ,

c h o o

l s
1 100 T 0 "

t 2 1

,hart 4.11

INTERPRATION#-

The abo"e table represent the requirements of internet b# "arious t#pes of users out of 6 t#pe of costumers indi"iduals are 7BN& business people who require a internet constitute to 0BN --<ospital people who require a internet constitute to3BN schools people who require a internet constitute to 9BN-here we obser"ed that maEimum people who requires internet are that 9BN schools and minimum is wholesalers &smallAscale industriesTable 4.12 #e-uirements of insta cash 0eposit by +arious users T N In percentage y o p e . o o f f p c e o o s p

t l u e m e r s 2 33.33 $

n d i " i d u a l s
2 33.33 *

u s i n e s s
1 16.66 w

h o l e s

a l e r s
0 0 ,

m a l l s c a l e i n d u s t r i e s
0 0 <

o s

p i t a l s
1 16.68 s

c h o o l s
6 100 T

" t 2 1 3

,hart 4.12

INT"#P#$TI%N'&

The abo"e table represent the requirements of insta cash deposit b# "arious t#pes of users out of 6 t#pe of costumers indi"iduals are 77-77N& business people who require a insta cash deposit constitute to 77-77N -wholesalers people who require a insta cash deposit t constitute to 06-66N schools people who require a insta cash deposit constitute to 06-6CN-here we obser"ed that maEimum people who requires insta cash deposit are that 77-77N indi"iduals &business and minimum is wholesalers& smallAscale industries &hospital
T$4)" 4.1

#e-uirements of business 0ebit car0 +arious users by T In percentage y N p o e . o o f f c p o e s o t p u l m e e r s 0 0 $

n d i " i d u a l s
1 20 *

u s

i n e s s
2 40 w

h o l e s a l e r s
1 20 ,

m a l l s c a l e i n

d u s t r i e s
0 0 <

o s p i t a l s
1 20 s

c h o o l s
* 100 T

" t 2 1 3

,hart 4.1

INT"#P#$TI%N'&

The abo"e table represent the requirements of business debit card b# "arious t#pes of users out of 6 t#pe of costumers- *usiness people who requires a business debit card constitute to 3BN-wholesalers people who requires a business debit card constitute to 9BN small scale industries people who require a business debit card constitute to 3BN-school people who requires a business debit card constitute to 3BN here we obser"ed that maEimum people who requires business debit card are wholesalers that 9BN schools and minimum is indi"iduals hospitalsT$4)"4.14 Preference of branch by costumers T N In percentage y o p e . o o f f p b e r o a p n l c e h 1 25.33 8 9 a

i n

b r a n c h
2 30..66 5 3 o

r t b r a n c h
2 33.35 * 5 a

+ a r b r a n c h
3 4 1

a s a n n a p e t a b r a n c h
1 1.33 C

o n t o r m e n t b r a

n c h
1 1.33 R

i n

r o a d b r a n c h
0 0 C

o u r t c o m p l

e E
3 4 R

T C c o m p l e E
. 100 T * "

t 2 1

,1$#T 4.14

INT"#P#$TI%N'&

The abo"e table represent the requirements costumersJ amon 2: members sur"e#ed&3:-77N of people are nearest to main branch&7B-66N of people are nearest to fort branch&77-7:N of people are nearest to ba+aar branch&9N of people are nearest to dasannapeta branch&0-77N of people are nearest to cantonment branch&0-77N of people are nearest to rin road branch&9N of people are nearest to r -t- c branch so here we obser"ed that

maEimum number of people are nearest to ba+aar branch that is 77-7:N and minimum related to court compleE-

FINDINGS

Out of 2: members 66 members are related to public sector ban(s and remainin are related ton pri"ate sector 5rom the abo"e anal#ses we concluded that requirements of current account facilitates b# "arious users are 0B members& requirements of pos machine facilities b# "arious users are 2 members &requires of cash credit limit facilities b# "arious users are 6 members& requirements of term loan facilities b# "arious users sre : members& requirements of s m s facilities b# "arious users are 09 members& requirements of insta cash deposit facilities b# "arious users are 6 members 5rom the abo"e anal#ses we concluded that requirements of main branch facilities b# "arious respondents are 3:-77N&requirements of fort branch b# "arious respondents are 7B-66N requirements of ba+aar branch facilities b# "arious respondents are 77-7:N requirements of dasanapeta branch facilities b# "arious respondents are 9N requirements of contorment branch facilities b# "arious respondents are 0-77N requirements of rin road branch facilities b# "arious respondents are0-77N requirements of r-t-c branch facilities b# "arious respondents are 9N-

SUGGESTIONS

$t is recommended to decrease the interest rates as well as mar in le"els of the schemes for better results ,ince most of the respondents are illiterates the s-b-i societ# has to educate the respondents re ardin the ,-b-i schemes and facilitates $t is recommend to force on scheme awareness amon the respondents $t is recommended to eEtent credit facilit# to respondent b# introducin new schemes $t is recommend to focus of s-b-i b# creatin awareness amon the respondents-

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,-nama (umara Philip (otler "-s-rama swam#

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