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INDEX
Sr. No.
1 2 3 4 5 6 7 8

Particulars
COLLEGE CERTIFICATE COMPANY CERTIFICATE DECLARATION ACKONWLEGEMENT PREFACE METHODOLOGY BANKING SECTOR IN INDIA MAIN INDEX

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0 1 2 3 4 5 6 7

DECLARATION

I, the undersigned Rathod Amit a student of S.Y.B.B.A. hereby declare that the project work presented in this report is my own work and has been carried out under the supervision of Mr. Rupala Savan of R.P.Bhalodia College, Rajkot. This work has not been previously submitted to any other university for any examination.

Date: Place: Rajkot.

Signature: Rathod Amit

ACKNOWLEDGEMENT
I sincerely thank the members of Gujarat State Financial Corporation who have been very co-operative in making me aware about their bank and making me know about the real practical world. I express my profound thanks to Mr. Rupala Savan who has always been supporting, patience and tolerant in solving my queries. I wish to express my success appreciation. Though it is too difficult to mention all the names in an exhaustive manner, some prominent ones have however been recognized. DIRECTORS OF GUJARAT STATE FINANCIAL CORPORATION I would like to thank my father, Mr.Kiritbhai Rathod, my mother, Sarojben Rathod, my friends, my colleagues who constantly encourage me during my training period. So this project report is dedicated to all of them. Date : Place : RAJKOT

PREFACE
My aim in writing this project, as its title indicates, has been to produce a practical report on the visit of GUJARAT STATE FINANCIAL CORPORATION. I have tried to highlight the true essence of the company and secondly make available in a consolidated form, from my personal experience during the visit to Gujarat State Financial Corporation. I have visited Gujarat State Financial Corporation, which taught me practical knowledge about how the bank operates. I have gained familiarity by experience. In this report I have presented the clear idea about the working in BANK. This report is updated from it financial till its marketing. This work is my original content and it has been never published anywhere before by anyone.

Date: Place:

METHODOLOGY
I have made the project according to performance prescribed in industrial study paper by Saurashtra University. First of all I went with requesting letter given by our college. After favorable reply from the organization, I have visited the service sector named Gujarat State Financial Corporation. After visiting and observing the organization, I have prepared project on the basic information provided by them. I tried my level best to collect maximum information during the visit for the preparation of this project.

BANKING SECTOR IN INDIA


The importance of banking as the nerve sector of economic development cannot be over emphasized. Banking industry has acquired a key position in mobilizing resources for socio economic development of the country. IT is said that Bank which are that need of & great wealth of our country have got to be kept very sacred. Just as water is for irrigation, good banks are for the countrys industry & trade. Since the beginning of planning in India banking industry has grown not only in size but also in depth this industry has become one big complex. Today banks have become a part & parcel of our life. It was the time when the dwellers of city alone could enjoy their service. Now banks offer access to even a common man & there activities extend to areas hither to untouched & after the globalization & liberalization policy of India, many foreign banks have entered in Indian market with different services & innovation technologies. Apart form their traditional business oriented function, they have now come out to fulfill national responsibilities. Todays banks supply to the needs of agriculturists, industrialist, traders, women, students, & to all other section of the society. Thus they speed up the economic growth of a country & steer the wheel of the economy towards its goals of self reliance in all fields. Hence today banking sector has become the lifeline of the economy. In present age in India there are many banks including foreign banks, public sector, private sector, commercial banks & co-operatative banks.

MAIN INDEX:
Sr. No.
1 2 3 4 5 6 7 8 9 10

Particulars
General Information Service Department Marketing Department Finance Department Personnel Department SWOT Analysis Future Plans Suggestion Conclusion Bibliography

Page No.
08 22 44 52 62 73 78 79 80 81

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CONTENTS OF GENERAL INFORMATION


Sr. No.
1 2 3 4 5 6 7 8 9 Introduction History Company Profile Board of Directors Existing Management Group Organization Structure Size and Form of Organization Mission Statement Objectives of Organization

Particulars

Page no.
10 11 12 14 15 17 18 20 21

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INTRODUCTION
Gujarat State Financial Corporation (GSFC) is a pioneer term lending development financial institution in the State of Gujarat. It is created under the State Financial Corporation Act, 1951 passed by Parliament.
The first chairman of the GSFC was Shri Amritlal Hargovandas

and now at present the chairman is Shri D Rajagopalan, IAS. He is the 23rd chairman of the GSFC. GSFCs mandate is to provide finance to small and medium scale enterprises. Formed in 1960, GSFC has sanctioned loans and advances of over Rs.4400 crores; out of which, it has disbursed over Rs.3,300 crores to 47,000 units in the state.
GSFC has created almost 683,000 jobs in Gujarat. The Corporation

has played a stellar role in creating new and first time entrepreneurs, has provided much needed finance to small and medium sale enterprises and has played a significant role in the industrial development and economic growth of Gujarat.
GSFC is form by the public enterprise. So every activity is watch

by government.
Sr. No. 1. 23. Name of Chairmen Shri Amritlal Hargovandas Shri D Rajagopalan, IAS From To

01/05/60 16/08/63 15/10/07 Continue

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HISYORY
Incorporated on 1st May, 1961. Its main object is to provide financial assistance to small and medium scale new/existing industrial and service sector units all over Gujarat for acquisition of fixed assets, preliminary and pre-operative expenses, expansion, modernization, diversification etc. GSFC has played an important role in the industrial development of the state. Till date, it has financed 47,000 units and disbursed Rs. 3,300 crore, generating employment for over 6,83,000 persons. Many units financed by it are now well established and have also graduated from small to medium and large scale. The last few years, Corporation is passing through financially difficult times. Currently, it is engaged in the activity of recovering dues from its borrowers and paying its lenders. One Time Settlement schemes have been introduced to expedite recovery. Cost cutting exercise has been implemented to reduce manpower by deputing staff to various Government departments and by implementing VRS. Government has formed a high-powered committee under Chief Secretary to decide on the future of GSFC. Committee has decided to offer VRS to employees have OTS scheme and restructure the organization.

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COMPANY PROFILE
1) Name of the Organization : 2) Office Address : Gujarat state financial corporation Race Course, Ring Road, Nr. Durkush Hotel Rajkot- 360 001. 1961. Public Enterprises Service Base Medium Scale a) Children's Hospital Building, Rasala Marg, Opp. Ellisbridge police line Ahmedabad-380 006. b) Nilam Baug Palace Compound Gaurishankar Road, Bhavnagar-364 002. c) Vikas Bldg., Dutch Garden Road, Surat-395 001. d) Apmc Building, 1st Floor, Opp. Power House Dashera Tekri, Bechar Road, Valsad-396 001. e) Regent Tower, 3rd Floor, Opp. Income Tax Bldg, Race Course Circle, Vadodara-390 007. 400 Persons (Over all GSFC)
Transaction Time: - 10:30AM to 6:10PM Saturday:-Second & fourth sat. Holiday. Off Days: - Sunday and all the Government Holiday

3) Year of Established 4) Form of Organization 5) Size of Unit 6) Braches

: : : :

7) No. of employees 8) Working Hours

: :

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9) Regional Manager 10) Phone No. 11) E-mail Address 12) Fax No. 13) Website 14) Regional Setup 15) Services

: Shri N. H. Kantesaria, Dy. Gen. Manager I/C. : 0281- 2443664 0281- 2442715 : mailto:gsfcrro@yahoo.co.in : 0281- 2479292 : www.gsfc.gujarat.gov.in.com : Rajkot, Junagadh, Jamnagar, Kutch-Bhuj. : EASY FINANCE FOR:SSI & Medium scale Industry HI-tech Agriculture Ayurvedic & Herbal Products Doctors & Hospitals Hotels & Restaurants

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Board of Directors
Smt. Gauri Kumar, IAS Principal Secretary Industries & Mines Department Block No.5, 3rd Floor, Sachivalaya, Gandhinagar Director Gujarat State Financial Corporation. (079)23250701 (079)23250703 secimd@gujarat.gov.in

Shri Arvind Agarwal, IAS Managing (079)23259513 Managing Director Director (079)23226220 GSFC Appointed By Government Of Gujarat Gandhinagar Shri G P Joshi, IAS Director Shri U R Tata Director Shri Harsh Kaul Director Nominated by State Government Nominated by SIDBI Nominated by SIDBI (079)23250606

mdgsfc@gujarat.gov.in

(079)27541086 (022)67531106

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EXISTING MANAGEMENT GROUP


Chairman: Managing Director: Staff:SR. NO. NAME OF THE EMPLOYEE DESIGNATION DEPARTMENT

Shri D Rajagopalan Shri Arvind Agrawal

1 2 3 4 5 6 7 8 9

SMT S G KUTTY SHRI K T BHAVSAR SHRI P S SINDE SHRI K L VERGHESE SHRI R R JASWANI SHRI K R JANI SHRI R N RANA SHRI P J CHAUHAN SHRI J G PARAMAR

EXE.SECRETARY CHAIRMAN CELL OFFICE SEC-1 CHAIRMAN CELL

VEHI.OPERTAOR CHAIRMAN CELL EXE.SECRETARY M D CELL JR.OFFICER JR.OFFICER OFFICE ATT.3 OFFICE ATT.3 OFFICE ATT.3 M.D.CELL M.D.CELL M.D.CELL M.D.CELL M.D.CELL

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General Manager: -

Shri F.D. Lahiri

Officers:1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SHRI K C RAJYAGURU SHRI A G DAVE SHRI I J MAKWANA SHRI V M JADEJA SHRI A R GOSWAMI SHRI M M BARAI SHRI P H DHIM SHRI A K KAUSHAL SHRI M S BHATT SHRI K D WAGHELA SHRI A P DHRUV SHRI V H VALA SHRI N H PATEL SHRI J R PATNI SMT R S DHOLAKIA SHRI R P JASANI SHRI G V MANDIR SHRI D D DANTI SHRI BHIKHU R GOZIYA SHRI D R CHAUHAN SHRI JAYANTILAL G MEHTA SHRI J A VANAR SHRI V C DEVMURARI SHRI K J MULUSH SR.OFFICER(FLD) JR.OFFICER(FLD) JR.OFFICER(FLD) OFFICE ASST. OFFICE ATT.3 SR.OFFICER(A/C) SR.OFFICER(FLD) SR.OFFICER(FLD) OFFICE SEC-1 OFFICE SEC-1 JR.OFFICER JR.OFFICER JR.OFFICER JR.OFFICER JR.OFFICER JR.OFFICER(FLD) OFFICE ASST. OFFICE ASST. OFFICE ASST. VEHI.OPERTAOR OFFICE ATT.3 OFFICE ATT.3 OFFICE ATT.3 FIX PAY RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O. RAJKOT R.O.

ORGANIZATION STRUCTURE
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Chairman Managing Director General Manager Dep. General Manager Manager

Director of Service Department


Loan Sanction Loan Disbursement Legal Department Recovery Department

Director of Finance Department


SR. Officer

Director of Market Department


Business Development Employees

Director of Personnel Department


Employees

JR. Officer

Routine Work Dep.

SIZE & FORM OF ORGANIZATION


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Size of organization:Managerial decision regarding the size of the plant or firm will depends upon the size of the market to be catered. Technical managerial function and human resource at our disposal are the crucial factors determining the size our business operation. We must strive to reach the optimum size in order to obtain the lowest cost of production as well as the lowest cost in distribution. There are three type of size of organization. They are: Large scale unit Medium scale unit Small scale unit

According to the Indian Companies Act 1956, organizations establish with an initial capital of Rs.1 crore or more than Rs. 1 crore is called large scale unit. Gujarat State Financial Corporation is a medium scale service base unit.

Form of Organization:20

The development or growth of forms of organization is closely interconnected with the stages of economic development of a country. Thus, after the economic development the evolution and development of organization is accelerated. The Gujarat State Financial Corporation is the Public Enterprises. It is handled by the Government. The following forms of organization carry out modern business.

Form of Organization

Privet Enterprises

Co-operative Sector Enterprises

Public Sector Enterprises

Sole Trader Partnership Firm Company Org. Privet Com. Public Com

Co-operative Society Co-operative Store

Government Department Govt. Company Statutory Corporation Statutory Board

MISSION STATEMENT
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The focus of Gujarat State Financial Corporation is to be a most useful, reliable and efficient provider of financial services. It is their continuous endeavor to be trustworthy advisors to their clients and also helping them to achieve their financial goals.

OBJECTIVES OF ORGANIZATION
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Gujarat State Financial Corporation main object is to provide financial assistance to small and medium scale new/existing industrial and service sector units all over Gujarat for acquisition of fixed assets, preliminary and pre-operative expenses, expansion, modernization, diversification etc.

GSFC main objective is that give the finance to small and medium scale industries.

The Corporation has formulated various schemes to meet credit needs of various segments of the economy. The Corporation has formulated various schemes for help to the IT-Industry and Hi-tech Agriculture.

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CONTENTS OF SERVICE DEPRATMENT


Sr. No.
1 2 3 4 5 6 7 8 9

Particulars
Introduction What is Service? Organization Structure Loan Department Procedures For Disbursement of Loan Terms of the Loan Loans Process of Granting Loans Recovery of Loan

Page no.
24 25 26 27 28 30 31 42 43

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INTRODUCTION
The product is a bundle of all kind of satisfaction of both material & non-material kinds. A product supplies two kinds of utility. (1) Economic Utility (2) Supplementary utility, in the form of social psychological benefits. The product may be a good, a service or the combination of both as good and service or just an idea. A Product is all things offered to a market. Those things include physical objectives; design, brand, package, label, price, service; supportive, literature and satisfaction not only form physical product and service offered but also from ideas, personalities and organization. In short, a economic, social and psychological benefits. With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India.

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WHAT IS SERVICE?
GSFC is known as a service unit because it provides its service to the society. What service means? Service has got different meaning or can be understand in different ways. Service means an action helping someone. The action of work for someone. A system supplying a public needs. Ready to assist someone when required. Form the above all meaning any meaning can be considered or is applicable for the service company. But the perfect meaning can be the combination of all the meanings. GSFC is perfectly suitable with this meaning because it helps by providing facilities, satisfying public need and ready to assist them whenever required. GSFC give only industrials loans.

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ORGANIZATION STRUCTURE
M.D. Director of Service Department Loan Sanction Loan Disbursement Legal Department Recovery Department

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LOAN DEPARTMENT
Now a day the world has become more and more costly, so the middle class people face the many problems to buy the required things. And the main problem is that they can not buy required things like house, vehicle, shop office etc. So, its main solution is loan. Because of this bank and other societies started giving them loans in which they will have to do the payment in installments. On these facilities they will be charged interest according to the repayment of the principle amount. EASY FINANCE FOR: Small Scale Industry Hi-tech Agriculture Doctor and Hospitals Ayurvedic and Herbal Products Hotels and Restaurants

GSFC also give the loans to the another instantiations .At last, the bank also works on the recovery of finance which was given by bank and disbursement of the finance.

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PROCEDURES FOR DISBURSEMENT OF LOAN


Time limit for receiving Letter of Acceptance : The application unit is required to send a letter of acceptance within 30 days from the date of issuance of the letter of sanction, failing which the Corporation has a right to cancel the loan. Early acceptance can speed up disbursement process. Scrutiny of Sanction Letter : A letter communication the detailed terms of sanction is issued to each applicant unit who should go through the same and if any term is not clear, seek clarifications immediately form the Corporation either by letter or in person to avoid any delay at the time of disbursement of loan/execution of security documents. Letter of Acceptance : The applicant has to convey in writing unconditional acceptance of the loan on terms and conditions stipulated in the letter of sanction. However, as stated above, if any term is not clear, necessary clarifications should be obtained immediately and thereafter acceptance of them should be made to the Corporation.

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Steps of the loan:-

Loan Sanction Loan Disbursement

Recovery No Due Certificate (NDU)

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TERMS OF THE LOAN


GSFC has sanction 70% amount of the total amount.

30% was the Party Margin. Sometimes the party margin is

decided by the loan. The amount divided into 21 installments.


After the one year, the loan taker read to pay for the installment.

There is three months quarterly Installment. In a year there are four

installments. The amount is Principle +Interest.

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LOANS
GSFC A FINANCIAL INSTITUTION FOR THE INDUSTRY Gujarat State Financial Corporation is a premier regional development bank set up by Government of Gujarat under the SFCs Act, 1951, to boost industrial development in the State. GSFC provides financial assistance to set up new industry for acquisition of fixed assets under various schemes of assistance for expansion, diversification, renovation, modernization, balancing equipment or to purchase energy saving devices etc. in case of existing units.

1)

Loan to Small Scale Industry :-

A person who has his own business and wants to start his own business as small scale sector can get this kind of the loan for the purpose of fulfillment of the short term working capital needs or to purchase new machineries or so on. With a view to boost the development of small scale units, Govt. of India and Gujarat have liberalized the industrial incentive policy by reforming the list of ineligibles industries and simplifying the registration policy. The corporation has also floated the schemes of bridge/temporary loan against admissible subsidy. To obviate various procedural difficulties and help the entrepreneurs to fulfill the same the corporation has introduced a novel & unique system called WALK-IN-SYSTEM. a. b. c. d. Mini composite loan up to Rs. 50,000/For loans above Rs. 50,000/- but up to Rs. 2 lakhs. For loans above Rs. 25 lakhs but up to Rs. 30 lakhs. For the loans above Rs. 10 lakhs. A minimum margin of 25% over the fixed assets will be maintained. Rate of Interest on loan is up to the 11%.

Margin:-

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2) Loan to Hi-tech Agriculture:Gujarat State Financial Corporation would provide loan for Hi-Tech Agriculture which includes Hi-tech System for crop cultivation, floriculture, fruits & vegetables, herbal & Ayurvedic plants, aromatic plants, oil seed cultivation, tissue-culture & biotechnology, captive industrial produce, mushroom & food processing, arid zone related agro plantation as the most potential spheres. GSFC would support SSI entrepreneurs having surplus land, corporate houses able to develop the projects individually, progressive farmers, educated unemployed youth and anyone with interest in hitech agriculture, to the tune of Rs. 10,000 to Rs. 240 lakhs. Scope of the scheme also includes green house, shade house, irrigation system, state of art fertilization system, state of art pests and disease management system, post harvest including cold store, pack house and processing, integrated projects. Even if entrepreneurs having their own land dont need finance, GSFC will be able to provide technology or known-how support to make their farms as model hi-profit farms.

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3)

Loan to Doctors & Hospitals:-

(A) Scheme for Doctors:The corporation provides terms finance to Doctors. Partly for purchase of electro medical and other equipments required for professional use, and partly to house the said equipment. (a) Eligibility:Application must possess MBBS or BDS or equivalent qualification. (b) Amount of loan:Loans up to Rs. 60 Lakhs may be considered for acquisition of equipment and machinery. (c) Rate of Interest:a. Backward districts = 12.5% b. Other districts =14% (d) Margin:Most of the party margin is 30%. (e) Repayment of loan:The loan will be repayable within a period up to 7 years, in quarterly installments, with initial moratorium up to 1 year from the date of initial disbursement. (B) Scheme for Hospitals/Nursing Homes:Financial Assistance under the scheme will be granted for establishing hospitals and Nursing Homes with the capacity of 20 or more but less than 50 beds. Assistance under this scheme will be available to small Hospitals/Nursing Homes which are organized as Private/Public limited companies/Partnership concerns and proprietary concerns which: a. Have the back-up of expert services of at least on postgraduate doctor with qualification of M.D. /MS Etc. on full basis.

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b. Are willing to provide medicals services at concessional rate

to patients from low income groups at least to the extent of 10% indoor patients. (a) Rate of Interest:a. Backward districts = 12.5% b. Other districts =14% (b) Margin:Most of the party margin is 30%. (c) Repayment of Loan:The loan will be repayable within a period up to 7 years, in quarterly installments, with initial moratorium up to 1 year from the date of initial disbursement.

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4) Loan to Hotels and Restaurants:Financial assistance from the Gujarat State Financial Corporation is not restricted to conventional industries only. But it is also available for starting hotel and restaurants industry. GSFC sanctions loans for any type of hotel viz. STAR or NON-STAR. (a) Amount of Loan:If yours is a limited company or a registered cooperative society and you wish to start a hotel in GUJARAT, you too could get finance up to Rs. 60 lakhs from GSFC. Proprietary and partnership concerns can get loans up to Rs. 30 lakhs. (b) Rate of Interest:a. Backward districts = 12.5% b. Other districts =14% (c) Margin:Most of the party margin is 30%. (d) Repayment of Loan:The loan will be repayable within a period up to 7 years, in quarterly installments, with initial moratorium up to 1 year from the date of initial disbursement.

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5) Loan to New Entrepreneurs:The corporation provides financial assistance up to Rs. 5 lakhs to technically qualified entrepreneurs, experienced craftsmen and skilled workers for setting up their own industry, on soft terms. (a) Eligibility:Applicants should be either graduate in engineering in relevant discipline: -Master degree in science with chemistry -Diploma holder in engineering (b) Amount of loan:The terms finance up to Rs. 5 lakhs for a project is considered for acquisition of fixed assets like land, building, plant and machinery and to meet with preliminary and pro-operative expenses to a certain extent. (c) Rate of Interest:a. Backward districts = 12.5% b. Other districts =14% (d) Margin:Most of the party margin is 30%. (e) Repayment of Loan:A moratorium period of 1 year is granted for repayment of principal amount. Total period of repayment including moratorium will be up to 9 years.

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6) Loan to Women Entrepreneurs:Women having business acumen and entrepreneurial Its can be given financial assistance to set up their own units promoted and managed by them only in SSI on soft terms. (a) Eligibility:All projects in small scale industries sector (including cottage, village and tiny industries) promoted and managed by women entrepreneurs will be eligible for assistance under this scheme. (b) Amount of loan:The corporation can provide financial assistance up to Rs.60 lakhs to the public or private limited company or registered cooperative concerns, this limit is Rs. 30 lakhs. (c) Rate of Interest:a. Backward districts = 12.5% b. Other districts =15% (d) Margin:The minimum margin is 20 to 25%. (e)Repayment of Loan:The loan will be repayable within a period of 8 years including moratorium up to 2 years. The period of repayment will depend on cash accruals / profitability of her unit.

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7) Loan to SC / ST Entrepreneurs:The enable SC/ST entrepreneurs to set up their own industry, the Corporation provides financial assistance up to Rs.3 lakhs on soft terms like lower margin, concessional interest rate, longer moratorium, longer repayment period and lower promoters contribution under this scheme. (a) Eligibility:The entrepreneurs hailing from SC/ST as may be certified by the competent authority like social welfare officer are eligible for finance under this scheme. However, for partnership firm all the partners must belongs to SC/ST (Partners must belong to SC/ST individually). (b) Amount of loan:The corporation can provide financial assistance up to Rs.3 lakhs. (c) Rate of Interest:The effective rate of interest on loan up to Rs.25.000/is at the of 9% and on loans above Rs. 25,000/- but less than Rs. 5 lakhs is at the rate of 11%. (d) Margin:The minimum margin prescribed is 10% on loan sanctioned and overall contribution prescribed 5%. If subsidy is sanctioned, then the minimum margin prescribed 10% after having provided for the amount of subsidy granted. (e) Repayment of Loan:Generally the moratorium of a period up to three years is granted for repayment of loan while the overall spread up to 12 years.

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8) Single Window Schemes:Gujarat State Financial Corporation has implemented a novel scheme single window to provide working capital loans along with terms loans to new Tiny and Small Scale units so that they can start their production expeditiously. The scheme intends to over come the initial difficulties and delays faced by the new tiny and small scale units assisted by the corporation in securing timely and adequate working capital loans from Bank. (a) Eligibility:The new tiny and small scale units, whose project cost does not exceed Rs. 5 lakhs excluding working capital margin) and the total working capital requirements at normal level of operations is up to Rs. 2.5 lakhs , are eligible under the scheme. (b) Amount of loan:Term loans up to Rs. 5 lakhs and working capital loans up to 2.5 lakhs will be provide. (c) Rate of Interest:a. For working capital loans Up to Rs. 2 lakhs. b. Term loan for fixed Assets. (d) Margin:Most of the party margin is 30%. (e)Repayment of Loan:Working capital loan and fixed loan are to be repaid in the within 8 years including moratorium up to 1 year. 14% per annum 13.5%per annum

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9) Equipment Finance Scheme:Existing small and medium industrial concerns working for four years having good past record of performance for 2 years, with sound financial position are provided financial assistance up to 80% of the cost of identifiable item of original equipment / capital goods including energy saving system s, not related to any specific project indigenous or improved, for their expansion, diversification, modernization, replacement, renovation and balancing equipment. (a) Eligibility:Existing industrial concerns having good record of performance and sound financial position are eligible for assistance under this scheme, if they satisfy the following condition. a. Have been in operation for at least 4 years. b. Have earned profits and/ or declared dividend on equity shares during preceding two financial years.

(b) Security:The loans granted under this scheme shall be secured by way of hypothecation of capital goods/equipment financed by way of first and exclusive charge thereon in favour of the corporation. (c) Rate of Interest:Rate of Interest on loan is up to the 11%. (d) Margin:Maximum loan that can be considered under the scheme is 80% of the cost of capital goods/equipment to be acquired. The borrower concern will have to bring in minimum 20% of the cost of equipment and also allied expenditure out of its own resources. (e)Repayment of Loan:The loan is repayable within a period 2 to5 years with a moratorium of 6 to 12 months depending upon the repaying capacity of the unit.

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10) Modernization scheme:The corporation provides assistance on soft terms to the existing industries working for more than 5 years to adopt improved and updated technology and methods of production to prevent mechanical and technological obsolescence of machines. (a) Eligibility:The modernization programme of the unit should be implemented by the competent management of the unit. Normally, the units should be in existence for a period of at least 5 years. (b) Modernization Programme:a. Up gradation of process, technology and product b. Export-Orientation. c. Import-Substitution. d. Energy saving e. Anti-Pollution measures. (c) Rate of Interest:Rate of Interest on loan is up to the 11%. (d) Amount of loan:The outstanding and the fresh loan under the modernization scheme will be restricted up to Rs.60 lakhs for limited companies and registered co-operative societies and up to Rs.30 lakhs for proprietary and partnership concerns. (e) Margin:A minimum margin of 10 to 15% over the fixed assets will be maintained. (f) Repayment of Loan:The repayment of the loan and the moratorium period is to be fixed on the basis of repayment capacity of borrowing concern. The initial moratorium may be up to 1 year and total repayment period will not generally exceed 6 years.
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PROCESS OF GRANTING LOANS

Primary Investigation:-

In primary investigation, bank investigates all the things of the customer such as, name, address, purpose of loan, amount of loan, assets which is going to be mortgaged, etc. After knowing all the things about the customer, bank will give loan form to customer. He has to fill up all the things clearly. Bank will need some documents for assurance. The one and common document bank demand is demand promisenary this because customer needs loan. If bank is granting loan to partnership firm and proprietorship firm following documents are required. All Partners/Proprietors photos Copy of Partnership/Proprietors deed P.A.N. Card Copy of firm. Registration Copy(if) Proof of existing of firm Proof of all Partners/Proprietors address

After investigation all above things and required documents General Manager of the bank will decide to grant loan or not. For taking this decision he may call meeting and General Manager takes an opinion of the others. Thus they will decide to grant loan of not and customer will get loan whether he has submitted all the required documents and if he has not submitted the entire required documents he might not be granted loan.

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RECOVERY OF LOAN
Customer who is being granted loan by bank, he has to repay the loan in small installments which have been decided earlier. Customer has to pay his installments in 1st to 10th of month otherwise he has to pay fine (penalty). Additional interest by way of penalty is charges in all the accounts where the unit makes default in repayment of the loan. The penalty is charged at 6% per annum on the default amount and for the period of default. The penalty is considered for both installment dues as well as interest dues. If customer does not pay more than 3 installments, bank will issue legal notice. And tough customer will not pay installment bank will claim in court and generally court will also take decision in favor of the bank then after Bank will again issue notice of confiscation assets for 30 days. After these entire if customer will not pay installment bank will issue notice of auction of his assets and bank will give an advertisement in news paper and after 30 days bank will get its money from selling assets.

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CONTENTS OF MARKETING DEPARTMENT


Sr. No.
1 2 3 4 5 6

Particulars
Introduction Organization Structure Marketing Segment & Market Research Services & Services Related Strategies Promotion Mix / Advertisement Competitors

Page No.
46 47 48 49 50 51

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INTRODUCTION
Today, marketing is spread in every field of like, services, hospitals, goods even politics and many more. In service sector too the importance of marketing also can not measurable, still it has not developed in public sector it is only limited to foreign service sector and privet sector. The reason for success of foreign in India is only best marketing efforts. Today in service sector there is a cutthroat competition between other sector and privet financial service sector. Marketing is a human activity directs at satisfying the needs and wants of customers, there are five stages of financial marketing. Firstly marketing is advertising, sales promotion and publicity. Secondly, marketing is smiling and co-friendly atmosphere. Thirdly, marketing is innovation. Fourthly, marketing is positioning. When all financial service sector advertise and innovate, they look alike so, they should try to position themselves differently, even through symbols, logos or aggressive advertising so that the customer can distinguee between one service sector and another. And finally fifthly, marketing is analyzing, planning and controlling. The concept of market is very much impotent in marketing. The American Marketing Associated defines, A market as the aggregate demand of the potential buyer for product/service. IN SIMPLE WORDS, Market is a place where buyers & sellers meet directly or indirectly for the exchange purpose & an exchange may be of goods or services. Here place may be real or virtual.

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ORGANIZATION STRUCTURE
M.D. Director of Marketing Department

Business Development Department

Employees

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MARKETING SEGMENT & MARKET RESEARCH


Marketing Segment also means the channels and areas of distributor. It means that where is the market of the goods produced. The market of the product of this corporation i.e. magically Segment is towns people and villages people who are the new entrepreneur, who started new business in the Gujarat. Also GSFC give more facilities to their customers. There are many other scheme which are helpful to people. Market Research is the way or a process which is understood to find out various details of the product in the market. It includes the customers opinions, demands & supply of the product and such other malls. GSFCs staff member themselves goes to market and gathers applications of different schemes from the customers. So, by this way they are getting benefits by using marketing research process for the great opinion of customers.

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SERVICES & SERVICES RELATED STRATEGIES


Product means the final output manufactured by the company and which can be used by its customers. Products related strategies means to make long term planning for the product. It means to get the target for the company and, also to maintain that how the company has to achieve target and in whats the time limit. GSFC is introducing the scheme as per the time. If he think that the time to launch the new scheme, he will. He gives first priority to the small and medium scale industries. Other schemes are also make to help their customers. Also the new entrepreneurs are invited by the GSFC.

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PROMOTION MIX / ADVERTISIEMENTS


Promotion mix is one of the most important mixes of the marketing mix. Without promotional activity, marketing or selling of any product becomes very though. It plays an important role in the business. Promotional activity including ADVERTISING PUBLICITY PERSONNEL SELLING SALES PROMOTION

This company invests 2% in advertisements. It advertises through mediums like Banners, Sign Boards, Booklets, and Pamphlets etc. It helps a lot to the company in increasing its sales and thus earns profit.

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COMPETITIONS
Competitions are the one who are the business rivalry of the company. Competitions are the one who are in the same field doing same business. There is very cut throat competition. This corporation deals in the business of disbursement of loans. Its major competitions are the Nationalization Banks and all others financial institution.

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CONTENTS OF FINANCE DEPARTMENT


Sr. No.
1 2 3 4 5 6 7 8

Particulars
Introduction Organization Structure Finance Planning Capitalization Capital Structure Fixed & Working Capital Management Receivable & Cash Management Profits & Profitability

Page No.
54 55 56 57 58 59 60 61

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INTRODUCTION
Finance is the fuel of administration. Without adequate financing any business enterprise cant raise its potentials for growth and success. And it would be worthwhile to recall what Henry Ford once remarked, Money is an arm or leg. You either use it or lose it. This statement through apparently simple and quite meaningful, it brings home the significance of money or finance. In the modern money oriented economy finance is one of the basic foundations of all kind of economic activities. Finance Department is also called accounting department. It is the department which deals with the money matter. It also prepares the final accounts and maintains the records of all the business transaction. It also helps the company to know where it is progressing of otherwise. Finance means procurement of funds & their effective utilization in business. In this corporation, one director of the corporation is given complete responsibility of this department. The control and directs his subordinates which includes Supervisor, Employees and Officers. They also maintain the day to day business transaction. They also produce then how much the company has progressed.

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ORGANIZATION STRUCTURE
M.D. Director of Finance Department

SR. Officers

JR. Officers

Routine Work Department

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FINANCIAL PLANNING
Financial planning means deciding in advance the financial activities to be carried on to organization. So, the basic purpose of financial planning is to make sure that adequate funds are raised at minimum cost and they are used widely. Proper planning of the business organization on one hand and on the other hand to allow a fair return to their contribution. Thus financial planning includes the following. Determination of financial objectives. Formation of financial policy. Development of financial procedure.

In this corporation, this work is under the finance department. There are financial planners and there are even the managers or the supervisor who separately work upon the routine i.e. day to day work of the corporation. The head (director) of the department takes the suggestions of the other directors and then plans out the financial structure and also decides how and when and where to use money and where to invest money and to spend where. Thus planning is done in this manner.

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CAPITALIZATION
It means the way the capitalization of the company is gathered in the intent stage of the companys formation. And then this capital to been illustrated rally invested in different assets. The Gujarat State Financial Corporation in the kind of Public Sector Company therefore it collects all its money from Government and SEDBI. If the (money) capital is still less it obtains from the IDBI and Market Bonds.

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CAPITAL STRCUTURE
It means that how the capital of the business is here divided. It also tells about how much is the fixed and working capital is there. It also tells that how much is the ownership capital and how much is the borrowed capital. Capital structure decision is yet another important are under financial management. Capital structure refers to the mix or proportion of firms permanent long term financing represented by debt preference must ensure the maximization of wealth of shareholders so even the capital structure decision must be taken in light of wealth maximization objectives. CAPITAL STRUCTURE = Long Term Debts + Preference Share Capital + Equity Share Capital + Reserves. Share capital :-89,11,40,000 Reserves & Surplus :-96,60,54,477 Other Liabilities :-1,18,19,94,643 Fixed Assets a. Own Assets :-11,12,92,156 b. Lease Assets :-11,57,38,829

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FIXED WORKING CAPITAL MANAGEMENT


There are mainly two types of capital fixed capital and working capital. The fixed capital is the one which is invested or used very rarely while working capital means the capital used in day to day life. To manage this capital is a difficult basic and the process of managing them and to plan how to use them is called management of fixed and working capital. The head of the department who is an experienced person and director of the corporation handles this difficult task in a very well manner. The plans out and manages the both the easily in a wonderful manner. It does this work very systematically and effectively.

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RECEIVABLE & CASH MANAGEMENT


Receivable management means to collect the money from the debtors or the customers. This need has to be done very carefully and also requires skills because company also have to take money from the customers and dont have do loose them by behavior badly with them. GSFC dose not receive any amount or money form the customers and debtors. He is borrowing all the money from the SIDBI and IDBI. As it is an important matter of the corporation so this work is done by the head of the department and his assistant who is opened. Cash management is done by another officer of the corporation. He is appointed mainly for this work only. He has to manage the cash.

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PROFITS & PROFITABILITY


Profits are the thing for which the most of the companies works. It is the gain which company gets after count all the expenses. Its lend of surplus amount which company earns through its business. Gujarat state financial corporation was going on the loss. Last two years, he has given the totally loss situation. Profitability means the financial gives. It also means excess of reliable over outlay. It means yielding profit. Corporation was gave the loss so there is no chance for the profitability.

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CONTENTS OF PERSONNEL DEPARTMENT


Sr. No.
1 2 3 4 5 6 7 8 9

Particulars
Introduction Organization Structure No. of Employees & Working Hours Recruitment & Selection Training and Development Employee Remuneration Employment Benefits & Services Performance Appraisal Promotion & Transfer

Page No.
64 65 66 67 68 69 70 71 72

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INTRODUCTION
Personnel management in any organization, it may be public, privet or co-operative constitute, perhaps the most vital assets of that organization. An organization will fail if its personnel management is not competent to execute the work assigned to them. There is no getting away from fact that personnel management represent a subsystem which dominants all other subsystem to the organization. Moreover, people are the only assets of an organization that appreciate over a period of time while all the other assets depreciate. The more an organization is investing in Personnel management, the greater the return from the investment is likely to be and it has been rightly pointed to in one of the books of inter national co-operative alliance, The gains accruing out of structural reforms can be best capitalized only it the personnel maintained by the co-operative institution are in a position to execute the policies effectively. This implies the need and necessity of proficient capable personnel management, which is one of the primary aims of the personnel management. According to national institute of personnel management of India, Personnel management concerned with people at work & with their relationship within the organization it seeks to bring together men & women who make you an enterprise enabling each to make his own best contribution to its success both as an individual as a working group.
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ORGANIZATION STRUCTURE
M.D. Director of Personnel Department

Senior Officer Junior Officer

Clerk

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Peon

NO. OF EMPLOYEES & WORKING HOURS


In Gujarat State Financial Corporation, the employees are decided by the Government. In this corporation, the employees are categories in to two parts. (1) Senior (2) Junior

No. of employees Working Hours

: :

400 Persons (Over all GSFC) Transaction Time: - 10:30AM to 6:10PM Saturday:-Second & fourth Saturday Holiday. Off Days: - Sunday and all the Government Holiday

In Rajkot the numbers of employees are 45.

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RECRUITMENT & SELECTION


Among the function of personnel manager, one man function is to procure best people for their organization, means search of prospective employees to suit the job recruitment. A firm has to pass through well and good recruitment process for having best personnel management this recruitment can be possible through many sources. As per requirement, the corporation has recruited the employees. They also recruit employees by transfer and promotion. Generally as per the recruitment of the job they give advertisement in newspaper and collect the pool of application. Managing people is not easy but it can be made easier if you make sure that you have selected the right people in the right place. And also it said, Selection of people is easy but selection of right people is difficult task. The selection procedure is concerned with securing relevant information about an applicant is secured. The objective of selection process is to determine whether the applicant meets the qualification for specific job and to choose the applicant who is choose the applicant who is most likely to perform well in that job. Generally they are selected through influences in addition with their capability and talents.

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TRAINING & DEVELOPMENT


Training is the process of increasing the knowledge and skills for doing a particular job. It is an organized procedure by which people learn knowledge and skills for a benefit purpose. The purpose of training is basically bridge the gap between job requirement and present competence of an employee. Training is aimed at improving the behavior and performance of a person. It is a never ending or continuous process. In any organization there should be proper training program to improve employee resources, as well as organization development. On the other hand development is long term education process utilizing a systematic and organized procedure by which managerial personnel learn conceptual and the critical knowledge for general purpose. So in the any organization the importance of the training and development is very vital, nobody can ignore it. The corporation undertakes the training procedure. It imports the training to the required candidate personally. In GSFC, the mostly training session is 15 days for the few experiences person or who has a well experienced person there is no need to training.

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EMPLOYEE REMUNERATION
Remuneration is the compensation of an employee receives in return for his or her contribution to the organization. Remuneration occupies an important place in the life of an employee. Standard of living of employee states in the society, motivation, loyalty and productivity depends upon the remuneration. For the employee remuneration is significant because of its contribution to the cost of production. For personnel management, remuneration is the major function. As far as it is concerned with the Gujarat State Financial Corporation, there is specific policy of employee remuneration formed by govt. and SEBI, and itself also. So, the management of employee remuneration there is a specific administration department, which cares of wages and salary and all things about remuneration. This all matter is handled and look by the head and assistants of the finance department. They also maintain the Bonus Register, Salary Register etc. As far as GSFC is concerned that is specified department who cares about employee remuneration. Apart from salaries they are also provides bonus (one month salary) also provides provident fund scheme.

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EMPLOYMENT BENEFITS & SERVICES


Some of the benefits given to the employees as per the government policies are as follows: (1) Allowances, Medical Facilities, Accident Insurance, Life Insurance, Promotions. (2) Bonus given every year and some addition given on festivals like Diwali, New Year, or any special occasion. (3) Employees are given all type benefits as per the government policies. (4) Corporation also takes life insurance and such other insurances. (5) It also procedures 50% gratitude, employees insurance required kit etc.

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PERFORMANCE APPRAISAL
Appraisal is the evaluation of worth, quality or management. It is a systematic evaluation of personnel by supervisor of other departments with their performance. It is also described as merit rating in which one individual is ranked as better of worse it comparison to other. Basic purpose in this merit rating is to ascertain an employees eligibility for promotion. For personnel management a performance appraisal is an important tool. Performance appraisal means persons performance in the company. The GSFC is the government department so every time the head department checks all the activity of the persons performance in time to time.

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PROMOTION & TRANSFER


PROMOTION:Promotion refers to advancement of an employee to a higher post carrying grater responsibilities higher status and better salary. It is upward movement of an employee in the organizations hierarchy to another job commanding grated authority higher status and better working condition when an employee is assigned a higher level job with more pay and powers he is said the promoted promotion may be temporary or permanent depending upon the need of the organization. The GSFC promote its employees on the basis of seniority, ability, performance, capability, merits and qualification.

TRANSFER:A transfer refers to horizontal or literal movement of an employee from on a job to another in the same or organization without any significant change in status any pay. It has defined as A literal shift causing movement of one individual to another. Usually without involving any marked change in duties as responsibility will needed of compensation.

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In GSFC Transfer of employees happens in rare case. Here, generally, positive Transfer takes place, means of any employees wants to Transfer from one place to another place.

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SWOT ANANLYSIS
S.W.O.T. analysis means overall evaluation of a firms strengths, weaknesses, opportunities and threats. S.W.O.T. analysis consists of making analyses of the external environment and internal environment.

External Environment Analysis::-

External environment consists of out of the firm such as government, competitors, etc. Such environmental analysis is necessary because it affects the firm or an organization.

Internal Environment Analysis::-

Internal environment consists of inner sides of the firm such as personnel, finance, etc. Such environmental is necessary because it affects the firm or an organization.

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STRENGTHS

WEAKNESSES

S.W.O.T. ANALYSIS

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OPPORTUNITES

THREATS

S W O T

= = = =

Strengths Weaknesses Opportunities Threats

STRENGTHS: Term loan for maximum time period.


Increase the employment in our state; and also in the production,

manufacturing and service sector.


Encouragement for middle class and lower class people.

Subscribe as a Channel agency. Fully computerization and automation.

WEAKNESSES:-

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Lazy organization. Minimum Grantee. Loan sanction in Remote area. Recovery problems. Loss in the Corporation. Less advertisement. High rate of Interest. Natural climates.

OPPORTUNITES: Introduction of various differentiate services. Bank can introduce new services like, NRI Loan, Loan for Physically Handicapped
There is lots of opportunity in giving finance.

THREATS: Changes in government policies and in rules and regulation

regarding bank can be disturbed in regular services of bank. Its major threats are the Nationalization Banks and all others financial institution.
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The future plans of Gujarat State Financial Corporation are: Construction of Commercial Complex, Showrooms & Sales outlets. Departmental Stores, Shopping Malls & Tourist Homes Setting up of Vocational Training Centres for Imparting Technical Skills Setting up of Marriage / Convention Halls and Community Centres (part of Hotel Enterprises) NRI Loan, Loan for Physically Handicapped

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In this world, every individual is striving for protection. No one is perfect. But constant Endeavour for excellence leads towards perfection. The world is changing rapidly especially in the area of business. However top becomes a world leader one should not remain unaware of self-weaknesses. They should focus more on advertisement. They should some efficient in their works.

There is need to improve web site of Gujarat State Financial Corporation. services. They should produce more innovative features in their

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The dictionary meaning of conclusion is to end Orin other word at the end to conclude whole the description a few words. As I have achieved my largest in preparing the project report by visiting Gujarat State Financial Corporation and learning the practical skills of management. I hereby declare that my knowledge about administration and management has improved by the help of member of corporation. During my visit all the staff members are found good & cooperative. We wish that the firm earn success in its entire venture & has a bright in the future.

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To complete the project on Gujarat State Financial Corporation successfully I have referred following books. BOOKS: Marketing Management - S. A. Sherlekar Finance Management - B. S. Shah Personnel Management - C. B. Mamoria

WEB SITES:

www.gsfc.gujarat.gov.in.com
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www.google.com

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