Loan and Advances

CONTENTS
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PARTICULARS
PART -A
EXECUTIVE SUMMARY
INDUSTRY PROFILE
COMPANY PROFILE
a) Background and inception of the company
b) Nature Of Business Carried
c) Vision and Mission
d) Product/service profile
e) Area of operation
f) Ownership pattern
g) Competitors information
h) Infrastructure facilities
i) Achievements & Awards
j) Work Flow Model
MC KINSEYS 7S MODEL
SWOT ANALYSIS
FINANCIAL STATEMENT
LEARNING EXPERIENCE
PART- B
GENERAL INTRODUCTION
RESEARCH STUDY
a) Statement of the problem
b) Objectives of the study
c) Scope of the study
d) Methodology
e) Limitations of the study
ANALYSIS AND INTERPRETATION OF THE DATA
FINDINGS & OBESRVATION
SUGGESTIONS & CONCLUSION
BIBLIOGRAPHY
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Executive summary:
H.K.E.S society S L N college of Engineering Yermarus Camp Raichur.
Page 1
Canara Bank is a leading public sector bank established on July 1, 1906 in the town of
Mangalore in Karnataka by Shri Ammembal Subba Rao Pai, an eminent lawyer,
educationist and social reformer. The bank has already completed 100 years of service. It
provides all sorts of financial services ranging from loans to insurance. The report
basically deals with the organization study of Canara bank. It mentions about the brief
introduction to banking industry,
.
In India
cooperative
the banking
sector is
segregated as
public or private sector banks,
banks and regional rural banks , the financial institutions (FIs),
encompassing term- lending institutions, investment institutions specialized financial

institutions and the
state-level development banks, Non Bank Financial companies
(NBFCs) and other market intermediaries such
as the
stock brokers and money
lenders.
Title of the project

The study and Analysis of Loans and Advances At Canara bank Ankalgi branch,
Analagi.
The study is mainly on Analysis of Loans & Advances at Canara Bank Ankalgi
Branch Ankalgi.
this project report is intended to Examine the Bank lending & borrowing procedure
of cash , types of loan products and interest rates, and also know the amount loan
has been sanctioned by the bank.
1) INDUSTRY PROFILE
Page 2
Banking in India has an early origin where the indigenous bankers

played a very important role in lending money and financing foreign trade and
commerce. During the days of the East India Company, was the turn of the agency houses
to carry on the banking business. The General Bank of India was first Joint Stock Bank to
be established in the year 1786. The others which followed were the Bank Hindustan and
the Bengal Bank. In the first half of the 19th century the East India Company established
three banks; the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of
Madras in 1843. These three banks also known as Presidency banks were amalgamated in
1920 and a new bank, the Imperial Bank of India was established in 1921. With the
passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of
India was taken by the newly constituted State Bank of India.
The Reserve Bank of India which is the Central Bank was created in 1935 by passing
Reserve Bank of India Act, 1934 which was followed up with the Banking Regulations in
1949. These acts bestowed Reserve Bank of India (RBI) with wide ranging powers for
licensing, supervision and control of banks. Considering the proliferation of weak banks,
RBI compulsorily merged many of them with stronger banks in 1969.
Despite increasing competition, public sector banks continue to dominate. Large scale of
operations bestows upon them a higher bargaining power enabling them to play a
dominant role in the liquidity and interest rate levels in the system. However, the scenario
in the future may undergo a change with the growth of the new private sector banks.
These banks are in a more advantageous position because of their superior technologybased operations, lower manpower and a lower Non-Performing Assets (NPA) level.
OUTLOOK
The banking scenario in the country has been undergoing a qualitative shift towards
international. The future, therefore, seems to be exciting, but only for those who can
Page 3
withstand the stress and strain that the reforms bring along. As banks expand their feebased income by offering various services including distribution of mutual funds,
investments and insurance products, the reach and responsive services takes center stage.
Also with more financial instruments gaining market acceptance, traditional advances are
likely to give way to investment in innovative instruments.
The banking industry needs to cut flab across the board, improve service conditions,
capitalize on their large client base for fee-based income and retain their customers
amidst hectic competition. With price wars slowly taking place, particularly after lending
below Prime Lending Rate is allowed, stronger players will emerge successful in the long
run
Commercial Banks at a glance
Particulars
No. of Commercial Banks
All Scheduled Commercial Banks
of which, Regional Rural Banks
Non-Scheduled Commercial Banks*
No. of Bank Offices
Rural
Semi-Urban
Urban
Metropolitan
* Indicates Local Area Banks
Jun-2011
295
291
Jun-2012
298
294
196
4
66692
32231
14875
10841
8745
196
4
66355
32394
14727
10578
8656
Source: Reserve Bank of India
2)COMPANY PROFILE
Widely known for customer centricity, Canara Bank was founded by Shri Ammembal
Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a
small port in Karnataka. The Bank has gone through the various phases of its growth

Page 4
trajectory over hundred years of its existence. Growth of Canara Bank was phenomenal,
especially after nationalization in the year 1969, attaining the status of a national level
player in terms of geographical reach and clientele segments. Eighties was characterized
by business diversification for the Bank. In June 2006, the Bank completed a century of
operation in the Indian banking industry. The eventful journey of the Bank has been
characterized by several memorable milestones. Today, Canara Bank occupies a premier
position in the comity of Indian banks. With an unbroken record of profits since its
inception, Canara Bank has several firsts to its credit. These include:
Launching of Inter-City ATM Network
Obtaining ISO Certification for a Branch
Articulation of Good Banking Banks Citizen Charter
Commissioning of Exclusive Mahila Banking Branch
Launching of Exclusive Subsidiary for IT Consultancy
Over the years, the Bank has been scaling up its market position to emerge as a
major 'Financial Conglomerate' with as many as nine subsidiaries/sponsored
institutions/joint ventures in India and abroad. As at September 2009, the Bank has
further expanded its domestic presence, with 2802 branches spread across all
geographical segments. Keeping customer convenience at the forefront, the Bank
provides a wide array of alternative delivery channels that include over 2000 ATMs- one
of the highest among nationalized banks- covering 715 centers, 1591 branches providing
Internet and Mobile Banking (IMB) services and 2084 branches offering 'Anywhere
Banking' services.

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Not just in commercial banking, the Bank has also carved a distinctive mark, in various
corporate social responsibilities, namely, serving national priorities, promoting rural
development, enhancing rural self-employment through several training institutes and
spearheading financial inclusion objective. Promoting an inclusive growth strategy,
which has been formed as the basic plank of national policy agenda today, is in fact
deeply rooted in the Bank's founding principles. "A good bank is not only the financial
heart of the community, but also one with an obligation of helping in every possible
manner to improve the economic conditions of the common people".
These insightful words of our founder continue to resonate even today in serving the
society with a purpose. The growth story of Canara Bank in its first century was due,
among others, to the continued patronage of its valued customers, stakeholders,
committed staff and uncanny leadership ability demonstrated by its leaders at the helm of
affairs. We strongly believe that the next century is going to be equally rewarding and
eventful not only in service of the nation but also in helping the Bank emerge as a
"Global Bank with Best Practices".
3) Organizational profile CANARA BANK

Type
: Public Ltd

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Industry
: Banking, Financial
Founded
: July 1906
Address
: Canara Bank Ankalgi
Phone Number
:8332-262245
Headquarters
Bangalore, Karnataka, India
Corporate office
: Hubli
Key people
: Shri. R.K. DUBEY (Chairman and MD)
Manager
: J .S. MURTHY (Branch manager)
Products
:Financeandinsurance
ConsumerBanking
CorporateBanking
InvestmentBanking
InvestmentManagement
Mutualfunds
Mortgages
Credit Cards
Employees
: 11
Head Office
: Bangalore.
Website
: www. Canarabank.com
A.BRIEF HISTORY:
Page 7
HEAD OFFICE
Founded as 'Canara Bank Hindu Permanent Fund' in 1906, by late Shri

Ammembal Subba Rao Pai, a philanthropist, this small seed blossomed
into a limited company as 'Canara Bank Ltd.' in 1910 and became
Canara Bank in 1969 after nationalization.
"A good bank is not only the financial heart of the community, but also one with an
obligation of helping in every possible manner to improve the economic conditions of
the common people" - A. Subs Rao Pai.
Founding Principles

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1. To remove Superstition and ignorance.

2. To spread education among all to sub-serve the first principle.
3. To inculcate the habit of thrift and savings.
4. To transform the financial institution not only as the financial heart of the
community but the social heart as well.
5. To assist the needy.
6. To work with sense of service and dedication.
7. To develop a concern for fellow human being and sensitivity to the surroundings
with a view to make changes/remove hardships and sufferings.
Sound founding principles, enlightened leadership, unique work culture and remarkable
adaptability to changing banking environment have enabled Canara Bank to be a
frontline banking institution of global standards.
B) Nature of the business carried
Financial services
Banking
C) Vision and Mission of Canara Bank
Vision
To emerge as a Best Practices Bank by pursuing global benchmarks in
profitability, operational efficiency, asset quality, risk management and expanding

Page 9
the global reach.
Mission
To provide quality banking services with enhanced customer orientation,
higher value creation for stakeholders and to continue as a responsive corporate
social citizen by effectively blending commercial pursuits with social banking
OBJECTIVES OF CANARA BANK
The objective is to build sound customer franchises across distinct businesses so

as to be a preferred provider of banking services for target retail and wholesale
customer segments, and to achieve a healthy growth in profitability, consistent
with the Banks risk appetite.
Increase the market share in Indias expanding banking and financial services
industry by following a disciplined growth strategy focusing on quality and not on
quantity and delivering high quality customer service.
Maintain our current high standards for asset quality through disciplined credit
risk management.
Focus on high earnings growth with low volatility.
Continue to develop products and services that reduce our cost of funds.
Develop innovative products and services that attract our targeted customers and
address inefficiencies in the Indian financial sector.

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D) Products & services Profile

Savings and deposits
Loan Products
Technology Products
Mutual Funds
Insurance Business
Card Services
Consultancy Services
Depository Services
Ancillary Service
Savings and Deposits
Kamadhenu deposit (reinvestment plan)
SB gold scheme (cbs branches

only)
Canara tax saver scheme
Canara champ deposit scheme
Recurring deposits
Canara Saral savings account
Special recurring deposit scheme
Savingsbankaccount

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Current account
Can premium current account

(cbs branches only)
Fixed deposit
Ashraya deposit scheme (for

senior citizens)
Canara auto renewal deposit

(card)
Canara super savings salary

account scheme
Loan products
Housing loan
Home
improvement
loan
Caar mobile
(vehicle)
Canara site
loan
Canara pension
Teachers loan
Canara rent
Canara
mortgage
Canara jeevan
Doctors choice
Canara cash
(shares)
Canara
budget(for
employed/busi
ness)
Sworna
loan(gold loan)
Canara guide
For online
education loan
TECHNOLOGY PRODUCT

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ATM cum-Debit Card

Facilities Available
i.
Transactions through our bank ATM and other bank ATM
ii.
Purchase of goods and services at POS Merchant
iii.
Mobile Top-up
iv.
VISA money transfer
v.
E- ticketing
Types of accounts
SB/CA/OD accounts in the name of individuals as well as joint accounts (operated
severally).
Application
Account holders desirous of having an ATM-CUM-DEBIT card are required to
submit an application in the prescribed format to the branch manager of the branch where
the account is being maintained.
Operations
The card can be linked to a maximum of 4 accounts. However, one account as
indicated by customer will be designated as Primary Account. All transactions done at
POS merchant locations and at other Bank ATMs will be debited to Primary account to
which the card is linked. Therefore transactions at other Bank ATM and POS are
restricted to the balance available in the primary account.
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Per Day Transaction Limit

Per day transaction at
o POS Merchant Establishments: Rs 20,000/o Cash withdrawal at our ATM/ Other Bank ATM: Rs 20,000/Validity
10 years from date of issue of the card.
An Inter-bank funds transfer facility for customers
Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer System
(NEFT) are two efficient, secure, economical, reliable system of funds transfer from
Bank to Bank. Now fund transfer can be made to more than 36000 Bank branches across
India. These facilities are available in more than 1650 branches of Canara Bank
(addresses and IFSC codes are available in our website under 'locator') as of now and
Bank has planned to enable all its branches for RTGS /NEFT by 31.3.08
Brief details on Real Time Gross Settlement (RTGS)
An electronic payment system in which payment instructions between banks are

processed and settled individually on a real time basis
Minimum amount of funds transfer under this facility is Rs.1,00,000/-
RTGS SYSTEM WORKS ON ALL DAYS EXCEPT ON SUNDAYS AND

NATIONAL HOLIDAYS
Charges refer to details under service charges in our website.

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Customer should furnish details of payees name, bank account number and type,
receiver bank name , branch name and IFSC code of the receiver Bank branch.
Brief details on National Electronic Funds Transfer (NEFT):
Another electronic payment system in which payment instructions between banks

are settled at fixed intervals
There is no minimum / maximum limit for transactions under NEFT.
NEFT SYSTEM WORKS ON ALL DAYS EXCEPT ON SUNDAYS AND

NATIONAL HOLIDAYS
Charges refer to details under service charges in our website.
Customer should furnish details of payees name, bank account number and type,
receiver bank name , branch name and IFSC code of the receiver Bank branch.
CANSPEED
ELECTRONIC FUND TRANSFER FACILITY INCORPORATING
REAL TIME GROSS SETTLEMENT (RTGS) / NATIONAL ELECTRONIC

FUND TRANSFER (NEFT)
These schemes enable an efficient, secure, economical and reliable system of transfer
of funds from remitters account in a particular bank to the beneficiarys account in
another bank across the country
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RTGS/ NEFT are the two schemes for transferring funds instantly to other Bank
branches electronically at cheaper rates
RTGS: An electronic payment system in which payment instructions between

banks are processed and settled individually and continuously, on a real time basis
during business hours. Minimum transaction value is Rs.1.00 lack.
NEFT: Another electronic payment system in which payment instructions

between banks are processed and settled on deferred net settlement (DNS) basis at
fixed times during the day. There is no minimum or maximum transaction value
for using this facility.
Mutual Funds
Canara bank has tie up Canara Robaco and HDFC AMC for cross selling of their
mutual fund products through our branches. Investment can be made in following
schemes.
CANARA ROBECO Mutual Fund Products

HDFC Mutual Fund Products
Insurance Business
a) "Participation by the Bank's customers shall be purely on a voluntary basis"

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b) "The contract of insurance is between the insurer and the insured And not
between the Bank and the insured
General Insurance
Life Insurance
Card Services.
Canara card is a global credit card from the house of Canara Bank, one of the
leading Banks in India, with around 2700 Branches and 34 million loyal
customer base. In tune with our tradition of offering quality products with
competitive features and best customer service, we are delighted to introduce
you to the Canara Global credit Cards, offered to the privileged & elite people
of the society. Canara Card is designed to meet your high-end life style with
anything you might need to make your experience a sheer pleasure. No matter
where you are across the world, luxury and comfort is always at hand.
Our cards enjoy the privilege of worldwide acceptance and free insurance
coverage. Canara Cards are backed by a wide network of Canara bank branches
and 24 card service centers located at many important cities spread across the
country. Canara bank is the principal member of visa-worldwide and master card
inc.
With its fantastic features and transparency in transactions, you will be delighted
to know, why you chose the right card. Please read further to know more about
Canara Global cards.
Consultancy Services

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Canara Bank has been in the forefront in extending various need based
ancillary services to customers. One such specialized service is the Executor,
Trustee, Taxation and Attorney ship services that the Bank has been offering for
more than three decades now. A later unique addition to our services to the
Corporate Sector is the Debenture Trustee services and Security Trustee services.
These services are unique in nature and are not available at several other banks.
These services are aimed at caring for the personal needs of the customer and
enhancing customer satisfaction. For example, drawing up a Will and
acting as executor of the Will for a customer, which is crucial to a person's wealth
and assets, gives him a great relief and confidence.
ADVANTAGES
the advantages of appointing the Bank as Executors and Trustees are as follows:
Continuity of management: By appointing the bank as Executor/Trustee, the

testator or the author of a Trust gets completely relieved of any anxiety of proper
management and fulfillment of his wishes.
Individuals do not manage administration; instead, the same is taken care by a full
complement of officers.
Efficient administration
Long experience &
Professional training
Courtesy and impartiality, Secrecy, Safety and Security.

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Depository Services
What is a depository?
A Depository is an organization which holds investors' securities in electronic form.
The depository also provides services related to various transactions in such securities.
A depository interfaces with its investors through Depository Participants. Depository
Participants maintain investors' accounts (Demat accounts) which are similar to
Savings Bank/Current accounts with a Bank. Purchase and sale of securities can be
done through Demat account.
Why de-mat account
Shares are held in electronic form
No need to safe keep share certificates.
No need to remember record dates of various companies
Immediate transfer of securities
No stamp duty on transfer of securities
Risk of bad delivery, fake securities eliminated
Reduced paper work for transfer of securities
Reduced transaction cost
Nomination facility available

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Automatic noting of change of address
Easy transmission of securities
Automatic credit of Dividend / bonus shares
Why Demat account with Canara Bank
Multi location services across the country
Competitive charges
Customer friendly service
Ideas (Internet based Demat Account Statement) facility available for viewing and
downloading transaction statements from internet.
Services available
Account opening
De-materialization
Transfer of securities
Pledge services
Freezing and un-freezing the depository account
Nomination facility

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Ancillary Services
SAFEDEPOSITLOCKERS
Keep your valuables in our lockers and have peace of mind.
Lockers available at select branches where Safe Deposit Vaults are installed. Bank
lets on hire safe deposit lockers to individuals (Singly or jointly), Firms, Companies,
Association or Clubs, Trustees on nominal rent.
SAFE CUSTODY SERVICES
This subsidiary service is rendered by the Bank to most valued customers. Bank
undertakes the responsibility of safe custody of articles entrusted By the Customer
under a contract and return the same according to terms agreed upon.
NOMINATIONS
This facility has been devised with an aim of minimizing the hardships caused to the
family members on the death of the depositor/s. Nominations can be made in respect
of all types of deposit accounts by the individual account holders in their own
capacity singly or jointly.
DD SHOPPE
Get your demand drafts through our exclusive DD outlets. Our DD Shoppe issues
demand drafts Up to one hour before close of office hours. Facility Available at
Selected Branches.
Accounts and Deposits]
Current Deposits
Fixed Deposits

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Kamadhenu Deposits
Recurring Deposits
Cash Managements Services

The speedier you are, its easier for you to address the challenges of Globalization.
Corporate Cash Management Services (CCMS), an innovative service offered by Canara
Bank for speedy collection of Cheques and other instruments, places Corporate on a
faster-track. In more ways than one-such as definite funds flow, better cash management
and deployment of funds, better monitoring of funds flow, optimum allocation of funds
and effective planning of investment functions.
Syndication Services
A new value added fee based service of the Bank for Corporate.

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Supported by a pool of experienced professionals with Engineering and Finance

background.
Strong underwriting capabilities of the Bank.
The services shall be either on Best Efforts basis or on Underwriting basis.
Direct participation in projects syndicated.
An end to end project finance solution provider.
Reasonable fee structure.
E) Area of operation
Regional
At present Canara bank is operating Karnataka state and opened branches all
over Karnataka state.
It is biggest and fastest growing organization in
Karnataka state. Recently they are planning to enter into the other states.
F) Ownership pattern
BOARD OF DIRECTOR
Chairman and Managing Director
: Sri R.K DUBEY
Executive Director
: Smt ARCHANA. S BHARGAVA
Executive Director
: Sri. ASHOK. KUMAR GUPTA
Director Representing Govt of India
: Sri SUDHA. KRISNA

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Director Representing RBI
: Smt HEMACHANDRA
Workmen Employee Director
: Sri G.V SAMBASIVA
Office Employee Director
: Sri G.V MANIMARAN
Part Time Non Office Director
: Sri K.L BILGRAMI
Part Time Non Office Director
: Sri SUTANUSINHA
Director Representing Shareholder
: Sri P V MAIYA
G) Competitor information
Sl. No
1
2
3
4
5
Bank
Canara Bank
SBI
Syndicate
Corporation
KVG
personal
10.25%
10.40%
9.5%
16.00%
7.5%
agriculture
10.75%
7.00%
10.25%
9.00%
4.00%
Other loans
13%
13%
13%
13%
12 %
H) Infrastructural Facilities
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Good sitting arrangement to workers
Internet banking facilities
Window 7 software facility for workers
Periodically send to employees Hubli for training their knowledge
Information Technology(core banking solutions, ATM network, internet banking,

SMS banking, electronic payment settlement through NEFT&RTGS, payment
gateway, DATA warehouse)
I) Achievements Awards
Awards and Achievements during 2012-13
Canara Bank received 2nd Runner Up award for 'Best Online Bank' among Public
Sector Banks at IBA Banking Technology Awards 2011
Canara Bank received 2nd Runner Up award for 'Best Customer Relationship
Initiative' among Public Sector Banks at IBA Banking Technology Awards 2011
Canara Bank received IDRBT Best Bank Award among Large Banks for "Use of
Technology for Financial Inclusion" from the hands of RBI Governor Dr. D
Subba Rao.

Page 25
Service Units Package
First Bank to introduce Centralized Solution for Service Units (CSSU), developed
in-house adopting the latest technology in the I.T. Industry
Awards and Achievements during 2011-12
Under the implementation of Rajbhasha, the Bank received Indira Gandhi

Rajbhasha Puraskar Yojna-2009-10 - Encouragement Prize.
NABARDs Best Performance Award, 2010-11, for SHG Credit Linkage and Best
Performing Farmers Club Award of NABARD, 2010-11, in Karnataka.
The Bank was conferred 5 Awards by the Public Relations Council of India
(PRCI), in the following categories
J) WORK FLOW MODEL (END TO END)

Page 26
Chief
manager
Manager
Clerks
assistant
manager
Officers
Cashier
3) Mckenys 7S frame work with special reference to

organization under study
Page 27
Strategy
Strategy of Canara bank is to strengthening the overall agricultural sector in the district
and to provide financial support for the rural development. For this purpose bank is
raising funds th through agricultural credit co operative societies rough share capital,
deposits and from NABARD through Apex bank and lending money through agricultural
credit co operative societies.

Page 28
Structure
Chief manager
assistant
manager
Manager
Clerks
Officers
Cashier
System
System in the 7-S framework refers to all the rules regulation and procedure both formal
& informal that complements the organization structure. It includes planning and control
system, capital budgeting system, recruitment training & development system, and
performance evolution system.
Style
Leadership style in Canara bank is of free rain.
It has top to bottom or top down system style.
All the major decisions are taken by the board of directors.
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Staff
Total number of staff in Canara bank is 11.
Skills
In the Mc Kinsey 7-S framework, skill is one of the most crucial attribute or capabilities
of an organization. The term skill includes those characteristics, which most people use to
describe a company. In other words skill refers to dominant skills or distinctive
competence of an organization.
Staff is Canara bank is highly qualified in accounting writing skills which are very
essential for providing banking services. Rural orientation is one of the essential skills
present with Canara bank Ankalgi.
Shared values
The core or fundamental values that are widely share in the organization and serve as
guidelines that are important, these values have greater meaning because they focus
attention and provide broader since of purpose.
The values of Canara Bank are:
Welfare of the weaker section of the society.
Customer satisfaction.
Mutual respect & trust in working relationship

Page 30
4] SWOT Analysis
Strength
2. Technologically advance.
3. Strong location infrastructure.
4. Quality processed procedures.
5. Quality process and procedures.
6. A new innovate product or services.
Weakness
1. Insufficient capital many restrict the growth prospects of the bank going prospects of
the bank going forward.
2. Undifferentiated products or services
3. Customer service is lesser as compared to other banks
Opportunity

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1. Rural and social banking

2. Moving in to new market segments that offered improved profit.
3. Scope for banking industry and demand for banking services.
Threats
1. Price wars with competitors.
2. Changing Got and RBI policies
3. Changing Technological Drives
4. Launch of new products by the competitors
5. Analysis of Financial Statement

BALANCE SHEET
(Of Canara Bank Three years)
Analysis of Balance Sheet Three years

According to the balance sheet of the canara bank there is increase in the share capital.
During 2012 the company as sanctioned more loan compared to last year. During this
year the profit has increased. The companys reserves and surplus is also showing good
increase. But during this year fixed assets have reduced and deposits increased during
three year advances increased. And investments also increased during last three
year.
Liabilities
Mar 2012
Mar 2011
Mar 2010

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Capital and Liabilities:

Total Share Capital
443.00
443.00
410.00
Equity Share Capital
443.00
443.00
410.00
Share Application Money
0.00
0.00
0.00
Preference Share Capital
0.00
0.00
0.00
Reserves
20,181.82
17,498.46
12,129.11
Revaluation Reserves
2,065.14
2,098.36
2,132.68
Net capital liability
22,689.96
20,039.82
14,671.79
Deposits
327,053.73
293,972.65
234,651.44
Borrowings
15,525.39
14,261.65
8,440.56
Total Debt
342,579.12
308,234.30
243,092.00
Other Liabilities & Provisions
8,891.12
7,804.64
6,977.30
Total Liabilities
374,160.20
336,078.76
264,741.09
Assets
Mar 2012
Mar 2011
Mar 2010
Cash & Balances with RBI
17,795.14
22,014.79
15,719.46
Balance with Banks, Money at Call
10,384.27
8,693.32
3,933.75
Advances
232,489.82
212,467.17
169,334.63

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Investments
102,057.43
83,699.92
69,676.95
Gross Block
4,858.37
4,686.15
4,480.37
Accumulated Depreciation
2,000.84
1,841.74
1,620.99
Net Block
2,857.53
2,844.41
2,859.38
Capital Work In Progress
0.00
0.00
0.00
Other Assets
8,576.01
6,359.15
3,216.92
Total Assets
374,160.20
336,078.76
264,741.09
6. LEARNING EXPERIENCE
The organizational study under Canara bank Ankalgi is a unique experience. Managing
such huge organization is not an easy task. Where all function of management practically
applied and implement in day to day workings. Planning, organizing, co-ordination and
implementation, communication, delegations are some of the functions are experienced in
this study. Management lesson are learned and practically seen under the training of
MISS. J S MURTHY MANAGAR OF CANARA BANK ANKALGI. I have learnt the
procedure to open the SB account. I have learnt many things about recurring deposits,
fixed deposit and various schemes. This helped me to understand the banking norms and
procedures for common man.

Page 34
1) A.GENERAL INTRODUCTION:
Introduction to loan & advances
The making of loans and advances has always been the prominent and profitable function
of a bank. Sanctioning credit to customers and others out of funds at its disposal is one of
the principal services of a bank. It is the advances, which bring most of the earnings for a
bank and establish valuable ties with the community. An effective loan policy provides
funds to the vital sectors of the economy development.
Principles of Lending:
When a banker is approached for a loan he has to keep his eyes and earns wide
open. Apart from appraisal of individual loan proposal, there are some general principles,
which should guide him determining whether a proposed loan is desirable, irrespective of
whether or not security is offered. It has been stressed throughout that a banker doesn't
lend only because the advance will be secured many other consideration influence his
decision. Safety, liquidity and profitability have been major plans or cardinal principles
Page 35
of banks lending. The banker has to trade-of between high safeties, high income. The
perfect balance between them requires effective bank management.
The principles are as follows
1. Safety
2. Liquidity
3. Diversification of risk
4. Profitability
5. Purpose oriented
1.
Safety:
For a banker, the celebrated principle in holding asset is "safety first" Nothing is
more important to him than the preservation of principal sum advanced. In fact by safety
is meant the ability of the borrower to repay the principal and interest thereon according
to the terms and conditions provided in the loan agreement.
2. Liquidity:
The next principle of sound commercial bank lending is that the advances should be
liquid. The assets should be readily into cash without much loss of value, which
temporary advances granted to finance some purchased of stock, raw-material etc. this is
what is referred to "real bills doctrine"-repayment out of the sale proceeds of the very
assets which banks accommodation helped to finance.
3. Diversification of Risks:

Page 36
It is another important principle of sound lending is that the banker should hold loan
assets of diversified character. So as to reduce the degree of credit risk. It should be one
of the banker's axioms to advance relatively moderate sums to many customers rather
than large sums to few customers. Loans are also tied to be diversified with respect to
maturity, security and the type of the borrowers.
4. Profitability:
A significant matter for consideration is the remunerative of the advance i.e. the
yield which the particulars advance is going to give to the banker. The rate of interest to
be charged has to be commensurate with the risk involved in loan. The objective of
profitability has to be moderated by safety and liquidity of funds and than by national
policies as lay down by the government and the central bank.
5. Purpose oriented:
The next information should be required id the purpose of the loan. Normally the
banks should not finance unproductive, consumption loans, else extend short-term credit
for movement of goods and other productive purpose. Commercial banks are generally
expected to make available ways and means of accommodation working capital advance
and not to finance fixed assets formation Just as the disbursement of the repayment of the
loan is made in one lump sum (repayment of the loan in installment is also permitted)
Loans & Advances

A) Personal loans

Page 37
The Bank is meeting varied personal credit requirements of different classes of people
through the following loan schemes under personal banking.
Canmahila.
Housing Loan.
Home Improvement Loan.
Can carry.
Can cash.
Can mobile.
Can budget.
Teachers Loan.
Can mahila:
A Loan Scheme exclusively designed for the benefit of women.
Loan for women Aged between 18 and 55 years, Married or single, Working or
not (housewives also), Engaged in business or self employed.
To meet any personal financial needs, viz., for buying household articles, gold
jewelers, computers, gift articles, etc.
No Security required in case of working women, however, in respect of a nonworking woman, for loan amount exceeding Rs.25,000./-, co-obligation of
husband / parent / son is insisted.
Interest 11.5% p.a. - EMI Rs.329/- per ten thousand for 36 months
Housing Loan:
Purpose: For construction / purchase / repairs / additions / renovations of

residential house / flat including the purchase of land and construction thereon.

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For taking over of the Housing Loan liability with other recognized Housing
Finance Companies, Housing Boards, Co-operative Banks, Co-operative Societies
and Commercial Banks at prevailing low rate of interest.
Eligibility: Salaried individuals, individuals engaged in business / professionals

and self-employed persons. NRIs are also eligible to avail loans without specific
permission of RBI. Persons above the age of 55 years are also eligible subject to
certain stipulations.
Maximum loan amount of Rs.50 lacks for purchase / construction of house / flat.
(Loan is also granted up to Rs.1 crore selectively.) And Rs.7.5 lack for repairs /
renovations / additions to the existing house / flat.
Security: Mortgage of House / Flat
Repayment: In convenient equated monthly installments up to 20 years
Home Improvement Loan:

Purpose: For furnishing house / flat with household furniture items, air conditioners,
wardrobes, kitchen cabinets, refrigerator, washing machine, etc.,
Can
be
availed
along
with
Housing
Loan
from
Canara
Bank
OR Without any Housing Loans
This loan can also be availed where a Housing Loan is already obtained from
Canara bank and the liability is subsisting.

Page 39
Eligibility: Owners of House / flat who are salaried individuals / individuals

engaged in business / professionals / self-employed. NRIs are also eligible.
Salaried individuals with minimum 25% net take home salary or Rs.2000/- after
meeting loan repayment, whichever is more. Other than salaried individuals minimum annual income of Rs.50, 000/- as evidenced by ITAO / IT Returns.
Repayment: In convenient equated monthly installments up to 60 months
Security: Hypothecation of assets created out of this loan. Mortgage of house /

flat (if housing loan is availed from Can Bank) suitable co-obligation / personal
guarantee. Waivers considered selectively.
Loan Quantum & Margin:
1. When availed along with Housing Loan from Canara Bank, amount up to one
year's gross salary / income over and above the normal eligible amount for
housing finance.
2. In other cases, one year's gross income / salary will be reckoned to determine the
loan quantum under this Scheme.
3. Subject to above, normally, the maximum loan quantum shall be Rs.2 lack.
Higher quantum considered selectively.
4. If availed as a part of the housing finance from Canara Bank, then, the margin
stipulated is 15%. In other cases, the margin is 20%.
Can carry (Loan to purchase Consumer Durables)

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Purpose: To pick up favorite household articles and latest gadgets to enhance

the quality of life. The personal computer, laptop, handy cam, cameras, music
systems, washing machine, microwave oven, refrigerators and many other
items.
Eligibility: Salaried individuals with minimum 25% net take home salary or
Rs.2, 000/- after meeting loan repayments, whichever is more. Other than
salaried individuals - minimum annual income of Rs.50, 000/- as evidenced
by IT Returns.
Finance up to 80% of the invoice value or 15 months of net salary, whichever

is less. And for non salaried persons and professionals, finance up to 50% of
net annual income of immediate previous year or 80% of the invoice value
whichever is less.
Repayment: In convenient equated monthly installments up to 36 months.
Can cash - (Loan against Shares)

Can cash loan can be availed by pledging investments in Shares, Debentures,
Bonds or Units.
Eligibility: Individuals - Existing customers with satisfactory dealings. New
customers - well-introduced and credit worthy can also avail.
Amount of Finance: Shares and Debentures - up to 60% of market value, PSU
Bonds up to 70% of Market Value, Units of UTI and CBMF - 50% of NAV or
market value whichever is less.
Repayment: Up to 60 months. EMI is also acceptable.

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Can mobile - Vehicle Loan
Purpose: For buying new or used four wheeler / new two Wheeler.
Eligibility: Salaried persons, professionals and business people, with

qualifying income and required repayment capacity. Reputed firms and
corporate are also eligible.
Loan amount up to 90% of the invoice value. There is no ceiling on maximum

loan amount.
Loan also available for used cars, Up to 75% of the value.
Repayment: In convenient Equated Monthly Installments up to 72 months in

case of four wheelers.48 months in case of two Wheeler.
Can budget:
A simple Personal Loan Scheme exclusively for the benefit of employees of

Corporate, PSUs, Government Departments, Institutions, etc.,
Purpose: To meet genuine personal needs.
Eligibility: Confirmed employees of reputed PSUs and Joint Stock

Companies ,Confirmed Central / State Government officials, Lecturers / Asst.
Professors / Professors of Colleges / Research Institutions and Universities
,Employees salary account has to be maintained with Canara bank branch
Net take home salary - 40% of the gross salary. Selectively up to 25% of gross
salary is also permitted.
Quantum: Six months' gross salary or Rs.1 lacks whichever is less.
Repayment: In convenient Equated Monthly Installments up to 60 months.
Security Normally, Co-obligation is required for loans above Rs.50,000/-
Teachers Loan:

Page 42
Purpose: To meet any genuine personal needs
Eligibility: All confirmed teaching / non-teaching staff working in a school /

college - drawing salary through Canara bank branches
Quantum: 6 months' net salary or Rs.1, 00,000/- whichever is less.
Repayment: Up to 36 months. EMIs also possible.
Security : A life insurance policy or a suitable co-obligation

B) Agriculture & Rural Credit
Kissan credit card

Minor irrigation/pumpest loan
Vehicle loan for agriculture
Loan for marine fisheries
Drip/sprinkler irrigation loan
Kissan suvidha
Canara kissan OD
Krishi mitra card scheme
Gold loans for agriculture purpose
a) Kissan credit card

Canara bank is the pioneer in implementing credit card scheme for formers
Purpose: for meeting the cultivation needs of formers and other short
term
requirements including those of subsidiary.

Eligibility: Individual formers /joint borrows / partnership firms / private & public Ltd,
companies who are owner cultivator subsidiary activities .and a former who are
cultivating authorized leased lands are also eligible.
Minor irrigation/ pumpset loans

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Purpose: For purchase of electrical motors, oil engines, submersible irrigation pumpsets,
for energisation of agricultural pumpsets, pipelines including installation charges,
installing generator sets, solar pumpsets, installation of drip/sprinkler irrigation systems,
fertilizer mixers.
Eligibility: Owner cultivators with minimum 2 acres of land. Loans can be considered
for less than 2 acres area provided, viability of the project is ensured.
Vehicle loan for agriculturists:
Purpose: For purchase of brand new vehicles such as bicycles, mopeds, two wheeler /
three wheeler carriages, jeeps vans and light motor vehicles for supervising agricultural
operation / management of farm / estate and for transportation of agricultural produce/
inputs, vehicles may also be a considered .purchase of heavy vehicles such as lorries for
big farmers owning at least 15 acres of perennially irrigated land.
Eligibility: Agriculturist cultivating his own land or engaged in allied activities such as
diary, poultry, sericulture, fish farming, etc
Loan for marine fisheries
Marine fisheries: Purchase / construction of mechanized fishing vessels, fishing
equipments, working capital requirements for voyages.
Inland Fisheries: Construction / deepening / desalting/ widening of ponds, purchase of
fingerlings, equipments, manures, feeds and labor inputs.
Eligibility: well experienced fish farmers with suitable land, professional fishermen.
Drip / sprinkler irrigation loans

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Purpose: For purchase of dripper, pressure regulators, filters, pipes, accessories, fertilizer
mixers and pump sets. Construction of overhead thanks and installation of sprinkler
irrigation units. Purchase of water savings devices / modern irrigation equipments.
Eligibility: owners of land tenant cultivators can also be considered.
Kissan suvidha
Purpose: For meetings the comprehensive credit needs of farmers. Working capital
requirements. For crop cultivation expenses, working capital requirements for allied
activities maintenance of farm machinery / equipments, non farm sector activities and
consumption needs. Term loans requirements like purchase of agricultural implements,
land development, purchase of bullocks and carts, purchase of farm machinery, minor
irrigation.
Eligibility: Agriculturists can avail finance for working capital requirements either under
KCCS (Kissan credit card scheme) or under kissan suvidha scheme and not under both
the schemes.
Canara kissan OD
Purpose:
To provide a hassle overdraft facility for working capital expenses of
agriculturists to be incurred for allied activities, repairs and replacements of farm

machinery, working capital requirements and for non-farm sector activities and
consumption needs, subjects to ceiling for each type of expense. The accounts can also be
operated by ATM card
Eligibility: Agriculturists having satisfactory repayment record for the past 1 year.
Krishi mitra card scheme
Objective: TO provide easy credit to individual tenant farmers, oral lessees, share
croppers and farmers cultivating lands without proper records.
Page 45
Purpose: Cultivation of crops. Maintenance of animals and farm machinery, repairs and
replacements of machineries. Replacement of animal.
Loan quantum: maximum of RS 50,000/- subject to scale of finance and maximum of
50% of the value of the produce.
Tenability: Extended either as an operative limit with a tenability of 3 years or as a
single transaction limit, repayable in 5 years in quarterly /half yearly/ yearly installments
.Gold loans for agricultural purposes
Objective: To provide loans to farmers for various agricultural purposes against the
pledge of gold jewelleries.
Purpose: TO meet all farm requirement of the farmers.
Loan quantum: Maximum of RS, 3, 00,000/- subject to 80% of the appraised value or
per gram limit specified from time to time
Repayment: Within 12 months.
Security: pledge for gold jewelleries.
C) OTHER PRIORITY SECTOR LOANS
Education loans
MSME loans
Education loans
Loans for students

Page 46
Purpose: payment of course fees. Purchase of book, equipments, instruments, uniform,

payment of hostel fees, examination fees, study tours, passage expenses.
Eligible courses:
Studies in India: Graduation, post graduation including technical /professional courses
with employment potential conducted by colleges/ universities approved by UGC/Govt /
AICTE /Dept of electronics/IMC autonomous institutions like IIT, IIM etc.
Studies aboard: Job oriented, technical/ professional courses
max.RS 10.00 lack. Studies in abroad: max RS 20.00 lack.
Margin: Upto RS 4.00 laics nil above 4.00 lacks- for studies in india-5%. Studies abroad
15%.
Security: Loan is given jointly to the student and parent/guardian. Assignment of future
income of the student. Up to 4.00 lack no security. Above 4lacs up to 7.50 lacks
satisfactory third party guarantee.
Repayment: Commences one year after completion of the course or six months after
getting employment whichever is earlier.
MSME loan
MSME POLICY
The Bank has adopted a Policy for lending to SME sector, in tune with Govt. of

Page 47
India guidelines as per MSMED Act, 2006, which has come into force i.e.
2nd October, 2006. The salient features of the policy are:
Definitions :
MSME sector comprises, Micro Enterprise, Small Enterprise and Medium Enterprises
Industry & Service Segments

Industry
Service
Micro
The investment in plant and
The investment in equipment
Enterprise
machinery (original cost) does not
(original cost) does not exceed
exceed `.25 lacks.
`.10 lacks.
Small
Investment in plant and machinery
Enterprise
(original cost) is more than `.25 lack
(original cost) is more than
but does not exceed `.500 lack.
`.10 lack but does not exceed

`.200 lack.
Medium
Investment in plant and machinery
Enterprise
(original cost) is more than Rs.500
(original cost) is more than

Page 48
lack but does not exceed `.1000 lacks.
`.200 lack but does not exceed

`.500 lack.
Note:
1. Enterprise means an industrial undertaking or a business concern or any other
establishment, by whatever name called, engaged in the manufacture or production
of goods, in any manner pertaining to any industry specified in the First Schedule to
the Industries (Development and Regulation) Act, 1951 or engaged in providing
employing plant and machinery in the process of value addition to the final product
2.
Having a distinct name or character or use, and rendering of any service or services.
3. In calculating the investment in plant and machinery, the cost of pollution control,
research and development, industrial safety devices and such other items as may be
specified, by notification, shall be excluded.
4. The word equipment is defined as All instruments, office machines and such other
electro mechanical or electronic appliances that are directly related to the service
rendered but
Excluding furniture, fittings and other items not so related.
Time Norms for disposal of Loan Applications:
Loan applications from units under SME sector will be disposed off within a reasonable
time as mentioned below, provided such applications are complete in all respects.

Page 49
Loans up to Rs.25000/-
Sanctions at
Sanctions at
Sanctions at
Branch
Circle Office
Head Office
Within 2 weeks
Not
Not applicable
applicable
Loans beyond Rs.25000/- &
Within 4 weeks
up to Rs.5 laths
Loans over Rs.5 lack & up to
Within 4 weeks
weeks
Within 30 days
Rs.25 lack
Loans over Rs.25 lack
Within 4
Within 45
Within 45 days
days
Within 30 days
Within 45
Within a
days
maximum of
Rs.8 weeks
Token of Service on receipt of each application for credit facilities shall be issued.
Security:
Assets created out of Bank loan.

Charge on the machinery/equipment & other fixed assets directly associated with

Page 50
the
Activity of the enterprise.
NO collateral security/third party guarantee for loans:
i.
Up to `.10 lack to Micro & Small Enterprises

Upton `.25 lack in respect of MSMEs whose track record and financial
position are good as per Bank records
ii.
Upton `.100 lack (aggregate) in respect of Micro and Small Enterprises

whose borrowable accounts are covered under Credit Guarantee fund for
Micro &
Small Enterprises (CGMSE).
[Note: Presently CGMSE cover is not available to credit facilities
extended
traders, educational institutions, training institutes, training cum
incubators
Centers and to Medium Enterprises].
Collateral security/third party guarantee for loans beyond the above limits is
insisted on
merits of each case, as determined by Bank, subject to RBI/GOI guidelines.

Page 51
Application forms:
Depending upon the quantum of loan requirement under Small Enterprises (including
Micro Enterprises) and Medium Enterprises, loan application forms are available at your
nearest branch.
The following prescribed applications are made available to the SME clients at the
branches of the Bank. Format of Applications may also be downloaded from the website
of the Bank.
Application
To Micro & Small
To Medium Enterprises
Enterprises
NF 836
Up to `.2 lack
NF 837
Over `.2 lack and up to `.15 lack
NF 838
Over `.15 lack and up to `.100 lack
NF 903*
`.1 core and above
NF 998*
To Micro & Small

Page 52
Enterprises irrespective of
the loan amount
D) GOVERNMENT SPONSORED SCHEMS LOANS
Saran jayanti rozgar shari yojana
Sworn jayanti gram swarozar yojana
a) Swarna jayanti shri rozgar yojana (sjsry)

Purpose:
Assistance to individuals under urban self employment programme for setting up of
gainful self employment ventures and development of woman and children in urban
areas.
Eligibility: applicants residing in urban /semi urban towns for at least 3years. Any
bankable project/ activity involving a project cost of upto RS 50000 for individuals. For
no ceiling on project cost.
Margin: 5% of the project cost .
Quantum of loan: 95% of project cost
Security: Mortgage of assets created out of loan
Project cost: 50,000

Page 53
Repayment: Within 3 to 7 years.

Swarna jayanti shahari rozgar yojana (sjsry)
Purpose: For setting up self employment ventures in rural areas
Eligibility: All families in rural areas who find a place in the list of bellow poverty line
identified through BPL census duly a approved by gram Saba are eligible for assistance
under the scheme.
Margin: Loans up to RS 50,000/- for individuals and loans up to 6,25 lacks .for groups
.Security: asset created out of loan/ mortgage of landed by property /Third party
guarantee.
Repayment: Within 5 to 9 years.
RESEARCH STUDY
STATEMENT OF THE PROBLEMS

The primary duty of the banks is to collects the deposits from the public and the same can
be lent to the customers in the form of loan and advances. The bank provides various
loans to its customers for different purpose like education, agriculture, Government

Page 54
Schemes, Other loan, etc. Study is under taken to analysis of loans and advance lent to its
customers during last 3 years and find out which sectors performance is sluggish and its
impact on the profitability of the bank.
B ) OBJECTIVES OF THE STUDY
To study the types of loans and produces for granting the loan to the customers.
Analysis of loan and advances sanctioned during last 3 years in case of
agriculture sector, personal loan Govt sponsored loan & other priority sector
loan .
Identify the impact of interest rates on the borrowings of the customers
C) SCOPE OF THE STUDY:

The project report covers different aspects of loan and advances. Sequencing the
information as per the use.
Analysis loans and advances and relevant information.
Interpreting the data and giving suggestions.
Study on pre-process of granting loan and advances
The study helps to know the credit monitoring and control
D) Methodology:
Data collection methods
Primary data:
The data required for the extensive study has been collected through
numerous sources. The primary data has been collected through personal
interviews with the concerned guide both in college as well as in the bank, who

Page 55
are well conversant with the topic and who can provide valuable inbuilt to the
study.
Secondary data:
Some banking booklets of previous years have been used as a reference for the
study. Banking magazines and prospects have also been used for the study. The
following are the secondary sources:
1) Annual Reports of the Bank
2) Balance Sheet
A) Limitations of the study:
The duration of the project was restricted only for 10 weeks.
The study is limited to the extent of available information supplied by the

bank
Information is partially based on secondary data and hence authenticity of the

study can be visualized and is measurable.
Some data was considered as very confidential and hence the bank
refused to share.
3. ANALYSES AND INTERPRETATION OF DATA

The following categories are showing that how Canara bank are classified there different
loan and advances products.

Page 56
1) Personal loan products

2) Agricultural loan products.
3) Govt sponsored loan products.
4) Other priority sector loans products
Value of loan has been sanctioned in last 3 years in case agricultural sector, personal
loan, Govt sponsored loans &other priority sector.
YEARS
2010
2011
2012
TOTAL
PROPORTIO
N
PERSONAL
AGRICULTURA
GOVT
OTHER
LOAN
L LOAN
SPONSERE
PRIORITY
D LOAN
SECTOR
22450
26305
31946
80701
5070
10695
15608
31373
LOAN
54111
62108
67383
183602
22.00%
8.55%
50.05%
21142
22154
27848
71144
OF
FINDING
19.39%
EACH
SECTOR
Total all sector loan amount from 2010-2012 is 366820
Each sector loan from 2009-2012
Personal loan=19.39 %( 71144/366820*100)
Agricultural loan=22 %( 80701/366820*100)
Govt sponsored loan=8.55 %( 31373/366820*100
Other priority sector loan=50.05 %( 183602/366820*100
The above data is shown below in the bar chart

Page 57
Amount in (%)
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Amount (%)
INTERPRETATION
It may be found above chart is that the Personal Loan is(19.39%) in 3 rd position
Agriculture loan and advance are high among the Govt sponsored loan loan and
advances. In followed
of Agriculture loan and advances (22%) in 2 nd position other
priority sector loan and advances is in
(50.05%), in 1 rdposition Govt sponsored loan
(8.55%) in 4th position in the total outstanding balance loan and advances in the 20102012.
Section 2:
In this 2nd section we are analyzing individual categories of loan and advances for the last
three years data.

Page 58
1) PERSONAL LOANS AND ADVANCES:

In the Canara loan products the personal loan is an important part. The bank
provides loan and advances to its customers to meet its credit requirements and
even to meet long term as well as working capital requirement of the company.
The Bank have been meeting varied personal credit requirement of different
classes of people through its some loan schemes namely can housing, can teachers
loan, can gold loan etc.
The following tables show the outstanding balance of last four years from 31 st
March 2010- 31st March 2012 that the bank has provided personal loans and
advances to its customers.
SL NO
1
2
3
YEARS
31-3-2010
31-3-2011
31-3-2012
AMOUNT
6700
7250
8500
The above datas are shown in column chart
Personal loans 2010 -12

9000
8000
7000
6000
5000
4000
3000
2000
1000
0
Analysis of
personal loan from 2010-2012.

Page 59
INTERPRETATION
In the above chart it is clearly shows that in 2010 the total
outstanding balance of Personal loan
and advance is increase by Rs 6700 compare
to previous year and again in the year 2011 increases by Rs 7250 and in the year
2012 it is
tremendously decrease
agriculture loan and advances is
by Rs 8500 so overall average growth in
Rs 22450
2) AGRICULTURAL LOAN AND ADVANCES:

Agriculture loans and advances include both direct and indirect loans
advances.
The bank provides various direct loan and advances in relating to purchase of land,
irrigation loans, land improvement loan, and others include machineries and loan to
purchase corps and fertilizers etc. indirect agriculture loan and advances provide with an
intension towards to preserve the agricultural products to longer time it include loan to
construct goods van transportation of agricultural product to market etc. the agricultural
loan advances are also are classified into periodic wise namely short and long term loans.
The short term loan provides to farmer to purchase corps, fertilizers etc. and loan
repayment period is maximum 1 year. And in long term loan includes more than a year
these kinds of loan provide to purchase of land, irrigation loans, land improvement loan,
tractor loan and others include machineries etc.
The following table shows the outstanding balance for the last four years from 31 st March
2010- 31st March 2012 that the bank provided Agricultural loan and advances to its
customers.

Page 60
SL NO
1
2
3
YEARS
31-3-2010
31-3-2011
31-3-2012
AMOUNT
24505
26305
31946
The above datas are shown in bellow column chart,

Years 2010-2012
Agricultural lone 2010-12

35000
30000
25000
20000
15000
10000
5000
0
INTERPRETATION:
In the above chart
it is
clearly shows that in 2010 the total outstanding balance of
agriculture loan and advances increase by Rs 24505 compare to previous year and
again in the year 2011 increase by Rs 26305 and in the year 2012 it is decrease by Rs
31946 so over all avg growth in agriculture loan and advances is Rs 82756.

Page 61
3) GOVT SPONSERED LOANS

The bank had changed their products name- Govt sponsored loan in the developing
economy of our country the Govt sponsored loan are playing a vital role in economic
development.
The following table shows the outstanding balance of last 3year from 31 st March
2010 to 31st March 2012 that bank provides Govt sponsored loan and advances to
its customers.
SL NO
1
2
3
YEARS
2010
2011
2012
AMOUNT
10000
12500
14654
The above the datas are showing in column chart

Analysis of Govt sponsored loan from 2010- 2012

Page 62
Govt sponsered loan2010-12

16000
14000
12000
10000
8000
6000
4000
2000
0
1
INTERPRETATION
In the above chart it is clearly shown that in 2010 the total outstanding balance
of a Govt sponsored loan and advances is increased by Rs 10.000 compare to previous
year but in 2011 it is increase by Rs 12500 and again I the year 2012 It is increased
by Rs 14654 so overall avg growth in Govt sponsored loan and advances Rs 37154.
4 ) OTHER PRIORITY SECTOR LOAN AND ADVANCES:

Other than above mentioned personal, agricultural, govt sponsored loan and
advances are coming under these categories in other priority sector loan and
advances include scheme Educational lone etc.
The following tables show the outstanding balance for last 3years from 31 st
March 2009 to 31st March 2012 that the bank has provided other sector loan and
advances to its customers.

Page 63
SL NO
1
2
3
YEARS
2010
2011
2012
AMOUNT
17505
22154
27848
The above the datas are the shown in bellow column chart
Analysis of other priority sector loan from 2010 - 2012
Other priority loan 2010-12

30000
25000
20000
15000
10000
5000
0
1
INETERPRETATION
In the above chart it is clearly shown that m in 2010 the total outstanding balance of
other priority sector loan and advances is increase by Rs 17505 compare to previous
Page 64
year but in 2011 is decrease by Rs 22154 and again in the year 2012 it is increased by
Rs 27848 above
so overall growth in other priority sector loan and advances is Rs
67507.
4.Findings:
Canara Bank is mainly concentrating on four types of loans. Agriculture,

Personal, Government Sponsored and Other loans.
There is increase in Personal loan and advances during 2010 to 2011 RS 550, and
2011 to 2012 that is Rs 1250.
The agriculture loan and advances increase during the year 2012
The lending of government sponsored loan increased year by year but during
2012 it is decreased.
Bank is not advertising about its products and services.
Bank interest rates are little high with comparison with some other banks.
Page 65
Canara bank branches are less in rural area; mostly they are concentrating on
urban areas.
5. Suggestions:
The Bank must provide loans to its customers on easy installments. It must give
full information about the loan schemes to its customers.

The Bank must take suitable steps to recover the loan amount.
They have to offer quality services and help the agriculturist to understand the
loan producer and subsidies available on account of agricultural sectors.
Bank has to conduct some campaigns like SBI home loan mela etc. , it helps the
bank to educate the customers about various loans available to their customers.

Page 66
The bank has to provide loan at competitive interest rates to its customers.
The bank has to motivate and educate customers to utilize online facility to pay
their telephone bill, taxes returns, online shopping and for many other purposes.
6) Conclusion:
The banking sector is a worthwhile business. In this competitive world every bank is
brining a new scheme which creates a competitive advantage to the customer. The
ultimate challenge for Canara bank would be to attract new customers by overcoming
the problem of customer with a definite plan of action so that it can maintain the trust and
confidence of its customers then problem of ROI in bank has to solve through changing
its funding problem. The various schemes which are brought by the competitors create
hurdle to the bank. So it is trying to bring out new schemes of its customer and also
trying to retain the old customers.

Page 67
This is a great pleasure to undertake a project work under Canara bank Ankalgi. I
really came to know what are the procedures and formalities required to take loan and
advances even the problem faced while recovery of such loans taken. Also I studied the
responsibilities of manager in providing loans and advances. I have put in my best efforts
and gave all the required information and some suggestion to overcome the problem
faced. The over all project helped me to under stand the banking industry and its working
and how it builds the relationship with the customers.
ANNEXURE
LAST 3 PROFIT AND LOSS A/C FOR 3YEARS
INCOMES
Interest earned
Other income
TOTAL INCOME
EXPENDITURE
Interest expended
Employee cost
Mar 2012
30,850.62
2,949.75
33,800.37
Mar 2011
23,064.01
2,826.98
25,890.99
Mar 2010
18,751.96
3,000.82
21,752.78
23,161.31
15.240.74
2.954.84
13,071.43
2.193.70
2.937.09
Page 68
Selling
and
admin 2.245.56
1.817.82
2.164.65
Expenses
Depreciation
156.89
Miscellaneous expenses
1.980.82
Preoperative
exp 0.00
151.36
1.700.34
0.00
155.13
1.146.44
0.00
capitalized
Operating expenses
Provisions & contingencies
TOTAL EXPENSES
NET PROFIT FOR THE
5.967.81
1.388.55
30.517.67
3.282.71
5.420.49
1.203.87
21.865.10
4.025.89
4.903.79
756.13
18.731.35
3.021.43
YEAR
Extraordinary items
Profit brought forward
TOTAL
Preference dividend
Equity dividend
Corporate dividend tax
EARNING PER SHARE
0.00
0.00
3.282.71
0.00
487.30
80.00
74.10
0.00
0.00
4.025.89
0.00
487.30
80.00
90.88
0.00
0.00
3.021.43
0.00
410.00
70.00
73.69
110.00
405.00
100.00
305.83
1.765.29
1.676.35
reserves
Transfer to other reserves
1.185.26
Proposed
dividend/ 567.30
1.693.30
567.30
865.08
480.00
transfer to Govt
Balance c/f to balance 0.00
0.00
0.00
sheet
TOTAL
4.025.89
3.021.43
(RS)
Equity dividend (%)
110.00
Book value (RS)
465.57
APPROPRIATIONS
Transfer
to
statutory 1.530.15
3.282.71

Page 69
Analysis of Balance Sheet Three years
Liabilities
Mar 2012
Mar 2011
Mar 2010
Total Share Capital
443.00
443.00
410.00
Equity Share Capital
443.00
443.00
410.00
Share Application Money
0.00
0.00
0.00
Preference Share Capital
0.00
0.00
0.00
Reserves
20,181.82
17,498.46
12,129.11
Revaluation Reserves
2,065.14
2,098.36
2,132.68
Net Worth
22,689.96
20,039.82
14,671.79
Deposits
327,053.73
293,972.65
234,651.44
Borrowings
15,525.39
14,261.65
8,440.56
Capital and Liabilities:

Page 70
Total Debt
342,579.12
308,234.30
243,092.00
Other Liabilities & Provisions
8,891.12
7,804.64
6,977.30
Total Liabilities
374,160.20
336,078.76
264,741.09
Assets
Mar 2012
Mar 2011
Mar 2010
Cash & Balances with RBI
17,795.14
22,014.79
15,719.46
Balance with Banks, Money at Call
10,384.27
8,693.32
3,933.75
Advances
232,489.82
212,467.17
169,334.63
Investments
102,057.43
83,699.92
69,676.95
Gross Block
4,858.37
4,686.15
4,480.37
Accumulated Depreciation
2,000.84
1,841.74
1,620.99
Net Block
2,857.53
2,844.41
2,859.38
Capital Work In Progress
0.00
0.00
0.00
Other Assets
8,576.01
6,359.15
3,216.92
Total Assets
374,160.20
336,078.76
264,741.09
Contingent Liabilities
166,419.96
111,805.73
110,627.02
Bills for collection
36,132.91
29,041.74
21,206.47

Page 71
Book Value (Rs)
465.57
405.00
305.83
BIBLOGRAPHY
FINANCIAL MANAGEMENT -KHAN & JAIN

BANK ANNUAL REPORT
WEBSITE WWW.CANARA BANK.COM
WWW. RBI .IN
WWW MONEY CONTROL .COM

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public or private sector banks,

banks and regional rural banks , the financial institutions (FIs),

encompassing term- lending institutions, investment institutions specialized financial

state-level development banks, Non Bank Financial companies

(NBFCs) and other market intermediaries such

stock brokers and money

Title of the project

Banking in India has an early origin where the indigenous bankers

Source: Reserve Bank of India

H.K.E.S society S L N college of Engineering Yermarus Camp Raichur.

H.K.E.S society S L N college of Engineering Yermarus Camp Raichur.

3) Organizational profile CANARA BANK

H.K.E.S society S L N college of Engineering Yermarus Camp Raichur.

: Canara Bank Ankalgi

Bangalore, Karnataka, India

: Shri. R.K. DUBEY (Chairman and MD)

: J .S. MURTHY (Branch manager)

Founded as 'Canara Bank Hindu Permanent Fund' in 1906, by late Shri

H.K.E.S society S L N college of Engineering Yermarus Camp Raichur.

1. To remove Superstition and ignorance.

B) Nature of the business carried

C) Vision and Mission of Canara Bank

H.K.E.S society S L N college of Engineering Yermarus Camp Raichur.

the global reach.

OBJECTIVES OF CANARA BANK

The objective is to build sound customer franchises across distinct businesses so

Focus on high earnings growth with low volatility.

H.K.E.S society S L N college of Engineering Yermarus Camp Raichur.

D) Products & services Profile

Savings and Deposits

Kamadhenu deposit (reinvestment plan)

SB gold scheme (cbs branches

Canara tax saver scheme

Canara champ deposit scheme

Canara Saral savings account

Special recurring deposit scheme

H.K.E.S society S L N college of Engineering Yermarus Camp Raichur.

Can premium current account

Ashraya deposit scheme (for

Canara auto renewal deposit

Canara super savings salary

H.K.E.S society S L N college of Engineering Yermarus Camp Raichur.

ATM cum-Debit Card

Transactions through our bank ATM and other bank ATM

Purchase of goods and services at POS Merchant

VISA money transfer

Per Day Transaction Limit

An electronic payment system in which payment instructions between banks are

Minimum amount of funds transfer under this facility is Rs.1,00,000/-

RTGS SYSTEM WORKS ON ALL DAYS EXCEPT ON SUNDAYS AND

Charges refer to details under service charges in our website.

H.K.E.S society S L N college of Engineering Yermarus Camp Raichur.

Brief details on National Electronic Funds Transfer (NEFT):

Another electronic payment system in which payment instructions between banks

There is no minimum / maximum limit for transactions under NEFT.

NEFT SYSTEM WORKS ON ALL DAYS EXCEPT ON SUNDAYS AND

Charges refer to details under service charges in our website.

REAL TIME GROSS SETTLEMENT (RTGS) / NATIONAL ELECTRONIC

RTGS: An electronic payment system in which payment instructions between

NEFT: Another electronic payment system in which payment instructions

CANARA ROBECO Mutual Fund Products