INTRODUCTION

BANKING INDUSTRY
Indian banking is the lifeline of the nation and its people. Banking has helped in developing the
vital sectors of the economy and usher in a new dawn of progress on the Indian horizon. The
sector has translated the hopes and aspirations of millions of people into reality. But to do so, it
has had to control miles and miles of difficult terrain, suffer the indignities of foreign rule and
the pangs of partition. Today, Indian banks can confidently compete with modern banks of the
world. Before the 20th century, usury, or lending money at a high rate of interest, was widely
prevalent in rural India. Entry of Joint stock banks and development of Cooperative movement
have taken over a good deal of business from the hands of the Indian money lender, who
although still exist, have lost his menacing teeth.
In the Indian Banking System, Cooperative banks exist side by side with commercial banks and
play a supplementary role in providing need-based finance, especially for agricultural and
agriculture-based operations including farming, cattle, milk, hatchery, personal finance etc. along
with some small industries and self-employment driven activities.
Generally, co-operative banks are governed by the respective co-operative acts of state
governments. But, since banks began to be regulated by the RBI after 1st March 1966, these
banks are also regulated by the RBI after amendment to the Banking Regulation Act 1949. The
Reserve Bank is responsible for licensing of banks and branches, and it also regulates credit
limits to state co-operative banks on behalf of primary co-operative banks for financing SSI
units.
Banking in India originated in the first decade of 18th century with The General Bank of India
coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are
now defunct. After this, the Indian government established three presidency banks in India. The
first of three was the Bank of Bengal, which obtains charter in 1809, the other two presidency
bank, viz., the Bank of Bombay and the Bank of Madras, were established in 1840 and 1843,
respectively. The three presidency banks were subsequently amalgamated into the Imperial Bank
of India (IBI) under the Imperial Bank of India Act, 1920 which is now known as the State
Bank of India.
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A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in
the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the
trade of the British Empire, and due to which banking activity took roots there and prospered.
The first fully Indian owned bank was the Allahabad Bank, which was established in 1865.
By the 1900s, the market expanded with the establishment of banks such as Punjab National
Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai both of which were founded
under private ownership. The Reserve Bank of India formally took on the responsibility of
regulating the Indian banking sector from 1935. After Indias independence in 1947, the
Reserve. Bank was nationalized and given broader powers. As the banking institutions expand
and become increasingly complex under the impact of deregulation, innovation and
technological up gradation, it is crucial to maintain balance between efficiency and stability.
During the last 30 years since nationalization tremendous changes have taken place in the
financial markets as well as in the banking industry due to financial sector reforms. The banks
have shed their traditional functions and have been innovating, improving and coming out with
new types of services to cater emerging needs of their 5customers. Banks have been given
greater freedom to frame their own policies.
Rapid advancement of technology has contributed to significant reduction in transaction costs,
facilitated greater diversification of portfolio and improvements in credit delivery of banks.
Prudential norms, in line with international standards, have been put in place for promoting and
enhancing the efficiency of banks. The process of institution building has been strengthened with
several measures in the areas of debt recovery, asset reconstruction and securitization,
consolidation, convergence, mass banking etc.
The acceptance of the Narasimham Committee recommendations by the Government has
resulted in transformation of hitherto highly regimented and over bureaucratized banking system
into market driven and extremely competitive one. The massive and speedy expansion and
diversification of banking has not been without its strains. The banking industry is entering a
new phase in which it will be facing increasing competition from non-banks not only in the
domestic market but in the international markets also. The operational structure of banking in
India is expected to undergo a profound change during the next decade. With the emergence of
new private banks, the private bank sector has 6become enriched and diversified with focus
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spread to the wholesale as well as retail banking. The existing banks have wide branch network
and geographic spread, whereas the new private banks have the clout of massive capital, lean
personnel component, the expertise in developing sophisticated financial products and use of
state-of-the-art technology.

Industry scenario of Indian Banking Industry:

The growth in the Indian Banking Industry has been more qualitative than quantitative and it is
expected to remain the same in the coming years. Based on the projections made in the "India
Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts
that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets
of all scheduled commercial banks by end-March 2010 is estimated at Rs 40,90,000 crores. That
will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in
2002-03. Bank assets are expected to grow at an annual composite rate of 13.4 per cent during
the rest of the decade as against the growth rate of 16.7 per cent that existed between 1994-95
and 2002-03. It is expected that there will be large additions to the capital base and reserves on
the liability side.
The Public Sector Banks(PSBs), which are the base of the Banking sector in India account for
more than 78 per cent of the total banking industry assets. Unfortunately they are burdened with
excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On
the other hand the Private Sector Banks are making tremendous progress. They are leaders in
Internet banking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned
they are likely to succeed in the Indian Banking Industry.
In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank, ING
Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. and banks
from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank,
Allahabad Bank among others. ANZ Grindlays Bank, ABN-AMRO Bank, American Express
Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry.

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Current Scenario:
The industry is currently in a transition phase. On the one hand, the PSBs, which are the
mainstay of the Indian Banking system are in the process of shedding their flab in terms of
excessive manpower, excessive non Performing Assets (Npas) and excessive governmental
equity, while on the other hand the private sector banks are consolidating themselves through
mergers and acquisitions.
PSBs, which currently account for more than 78 percent of total banking industry assets are
saddled with NPAs (a mind-boggling Rs 830 billion in 2000), falling revenues from traditional
sources, lack of modern technology and a massive workforce while the new private sector banks
are forging ahead and rewriting the traditional banking business model by way of their sheer
innovation and service. The PSBs are of course currently working out challenging strategies even
as 20 percent of their massive employee strength has dwindled in the wake of the successful
Voluntary Retirement Schemes (VRS) schemes.

Aggregate Performance of the Banking Industry:

Aggregate deposits of scheduled commercial banks increased at a compounded annual average
growth rate (Cagr) of 17.8 percent during 1969-99, while bank credit expanded at a Cagr of 16.3
percent per annum. Banks investments in government and other approved securities recorded a
Cagr of 18.8 percent per annum during the same period. In FY01 the economic slowdown
resulted in a Gross Domestic Product (GDP) growth of only 6.0 percent as against the previous
years 6.4 percent. The WPI
Index (a measure of inflation) increased by 7.1 percent as against 3.3 percent in FY00. Similarly,
money supply (M3) grew by around 16.2 percent as against 14.6 percent a year ago. The growth
in aggregate deposits of the scheduled commercial banks at 15.4 percent in FY01 percent was
lower than that of 19.3 percent in the previous year, while the growth in credit by SCBs slowed
down to 15.6 percent in FY01 against 23 percent a year ago.

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The industrial slowdown also affected the earnings of listed banks. The net profits of 20 listed
banks dropped by 34.43 percent in the quarter ended March 2001. Net profits grew by 40.75
percent in the first quarter of 2000-2001, but dropped to 4.56 percent in the fourth quarter of
2000-2001

Interest Rate Scene:

The two years, post the East Asian crises in 1997-98 saw a climb in the global interest rates. It
was only in the later half of FY01 that the US Fed cut interest rates. India has however remained
more or less insulated. The past 2 years in our country was characterized by a mounting intention
of the Reserve Bank Of India (RBI) to steadily reduce interest rates resulting in a narrowing
differential between global and domestic rates. The RBI has been affecting bank rate and CRR
cuts at regular intervals to improve liquidity and reduce rates. The only exception was in July
2000 when the RBI increased the Cash Reserve Ratio (CRR) to stem the fall in the rupee against
the dollar. The steady fall in the interest rates resulted in squeezed margins for the banks in
general.

About central bank of India

History
Established in 1911, Central Bank of India was the first Indian commercial bank which was
wholly owned and managed by Indians. The establishment of the Bank was the ultimate
realisation of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha
Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride felt
by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as the 'property of the
nation and the country's asset'. He also added that 'Central Bank of India lives on people's faith
and regards itself as the people's own bank'.
During the past 102 years of history the Bank has weathered many storms and faced many
challenges. The Bank could successfully transform every threat into business opportunity and
excelled over its peers in the Banking industry.

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A number of innovative and unique banking activities have been launched by Central Bank of
India and a brief mention of some of its pioneering services are as under:
1921 Introduction to the Home Savings Safe Deposit Schemeto build
saving/thrift habits in all sections of the society.
1924 An Exclusive Ladies Department to cater to the Bank's women
1926
1929
1932
1962

clientele.
Safe Deposit Locker facility and Rupee Travellers' Cheques.
Setting up of the Executor and Trustee Department.
Deposit Insurance Benefit Scheme.
Recurring Deposit Scheme.

Subsequently, even after the nationalisation of the Bank in the year 1969, Central Bank
continued to introduce a number of innovative banking services as under:
1976
1980
1986
1989

The Merchant Banking Cell was established.

Centralcard, the credit card of the Bank was introduced.
'Platinum Jubilee Money Back Deposit Scheme' was launched.
The housing subsidiary Cent Bank Home Finance Ltd. was started with

its headquarters at Bhopal in Madhya Pradesh.

1994 Quick Cheque Collection Service (QCC) & Express Service was set up
to enable speedy collection of outstation cheques.
Further in line with the guidelines from Reserve Bank of India as also the Government of India,
Central Bank has been playing an increasingly active role in promoting the key thrust areas of
agriculture, small scale industries as also medium and large industries. The Bank also introduced
a number of Self Employment Schemes to promote employment among the educated youth.
Among the Public Sector Banks, Central Bank of India can be truly described as an All India
Bank, due to distribution of its large network in 27 out of 29 States as also in 3 out of 7 Union
Territories in India. Central Bank of India holds a very prominent place among the Public Sector
Banks on account of its network of 4336 Branches, Asset Recovery Branches (ARB) 9,Retail
Asset Branches (RAB) 15 and 26 extension counters along with satelite branches at various
centres throughout the length and breadth of the country.

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Customers' confidence in Central Bank of India's wide ranging services can very well be judged
from the list of major corporate clients such as ICICI, IDBI, UTI, LIC, HDFC as also almost all
major corporate houses in the country.

ORGANISATION STRUCTURE

Shri. Rajeev Rishi

Chairman & Managing Director
Chander Mukhi
Nariman Point
Mumbai-400 021
Tel.: 022 - 2202 4393/ 2202 3942
Fax.: 022 - 2202 8122

Shri Raj Kumar Goyal

Shri Animesh Chauhan

Shri B.K. Divakara

Executive Director

Executive Director

Executive Director

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11 th Floor,Chander

10 th Floor,Chander

10 th Floor,Chander Mukhi

Mukhi

Mukhi

Nariman Point

Nariman Point

Nariman Point

Mumbai - 400 021

Mumbai - 400 021

Mumbai - 400 021

Tel.: 022- 66387799

Tel.: 022 - 2287 4143

Tel.: 022- 66387599

Fax.: 022 - 2202 2617

Shri Saurabh Garg,

Shri Shekhar Bhatnagar

Prof. N. Balakrishnan

Government Nominee

RBI Nominee Director

Director

Director

Regional Director, Kanpur,

Reserve Bank of India,

Super Computer Education

Joint Secretary, PF II,

P.B.No. 82 & 142,

and

Department of

Mahatma Gandhi Marg,

Research Centre,

Expenditure,

KANPUR-208001.

Indian Institute of Sciences,

Shri M. P. Shorawala

Shri Krishan Sethi

Shri S. B. Rode

Director

Director

Officer Employee Director

A-7, Lajpat Nagar-II,

1043, Sector-17B,

Central Bank of India

IFFCO Colony,

Swargate Branch

Ministry of Finance,
New Delhi.

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New Delhi - 110 024

Gurgaon-122001

Plot No. 3, Mukund Nagar

(Haryana).

Swargate
Pune - 411 037.

Shri Gurbax Kumar Joshi Smt. N.S. Rathnaprabha

Workmen Employee

Director

Director
61, Brahmin Street,
Central Bank of India

Kanakatte Sub Post,

Mandi Road Branch

Kanakatte - 573 144,

Arisikere RMS, Hassan

Functions
Item No. Provision

Information

4(1)bi

The particulars of organization

Central Bank of India is a Public Sector

functions and duties.

Bank constituted by the Banking

Companies (Acquisition & Transfer of
undertakings) Act, 1970. 100% of its
shares are held by Govt. of India.
Its organizational structure aredetails

4(1)bii

The powers and duties of its

All the officers from JMGS to DGM

offices and employees.

grade of the bank working in branches

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have certain financial powers depending

upon their position. Further the Senior
Officers working in administrative
offices viz. RO, ZO and Central Office
also have certain financial powers
depending upon their position. The
delegation of financial powers to
various grades of officials is decided by
the Board of Director of the Bank.
These powers are revised periodically,
depending upon the organizations
requirement and also Government/RBI
guidelines.
Whether to sanction a loan or not, is the
absolute discretion of the concerned
sanctioning authority of the Bank and
such discretion is exercised, after taking
into consideration the relevant facts and
circumstances of each case.
4(1)biii

The procedure followed in the

There is a well defined system in the

decision making process,

Bank regarding the decision making

including channels of

process. Financial decisions are taken at

supervision and accountability.

various levels by the lending authorities

of the Bank. The various lending
authorities of the Bank arei.

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Branch Managers in different

categories of branch.
ii.

Assistant Regional Manager and

Regional Manager in Regional
Offices.

iii.

Chief Manager/Assistant General

Manager in Zonal Office/Branch.

iv.

Dy. General Manger in Zonal

Office/Central Office/Branch.

v.

General Manager in Zonal

Office/Central Office.

vi.

Executive Director.

vii.

The Chairman and Managing

Director.

viii.

Management Committee of
board.

ix.

Board of Directors.

Within the overall lending powers, there

are specific ceiling for non-fund based
facilities. Specific ceiling on lending
powers are also fixed against certain
types of securities like Book debt,

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Shares, NSC, KVP, Relief Bonds etc. In

case of Retail Lending Schemes the
lending powers of the delegates are
scheme specific. The list of Retail
lending Schemes and Terms and
Conditions of such schemes are
available in the website as well as at the
branches
Further, there is a well defined
organizational structure and a clear
system of accountability which also
take into account the RBI/CVC
guidelines. Each officer will have to
consider loan proposals and take a
decision in terms of the scheme of
delegation of powers. All loans
sanctioned will have to be reported to
the higher authority for control purpose.
The system of exercising proper
delegation of powers and submission of
control returns are monitored by the
controllers and through audits.
4(1)biv

The norms set by the Bank for

Central Office of the Bank decides the

the discharge of its functions.

rate to be offered by the Bank for the

deposits, for different tenures which are
displayed in the Banks website and
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also at the branches. Regarding the

advances, again Central Office takes a
decision on introduction of various loan
products and details of which are
available in the website as well as all
the branches. Central Office also
decides about the rates of interest for
various advances which again are
available on our website and also at the
offices/branches of the Bank.
Whether to sanction a loan or not, is the
absolute discretion of the concerned
sanctioning authority of the Bank and
such discretion is exercised, after taking
into consideration the relevant facts and
circumstances of each case.
4(1)bv

The rules, regulations,

There are quite a number of documents

instructions, manuals and

like manuals of instructions, codified

records, held by the Bank or

circulars, scheme of delegation of

under its control or used by its

powers, proceedings of the board etc

employees for discharging its

and also the periodical circulars, used

functions.

by the employees for discharging

various functions.
(These are all meant for internal
circulation and can not be shared with

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public).
4(1)bvi

A statement of the categories of These are mainly record of the

documents that are held by the

Proceedings of the Board Meetings and

Bank or under its control.

various Committee Meetings.

Documents executed by
customers/borrowers/ guarantors.
Contracts with Third Parties etc.
(These are all meant for internal
circulation and can not be shared with
public).

4(1)bvii

The particulars of any

The Board of Director while

arrangement that exists for

formulating the policies of the Bank

consultation with, or

keep in mind the state of the economy,

representation by the members

the Govt. policies and the issues

of the public in relation to the

concerning the public.

formulation of its policy or

Further the Banks annual

implementation therof

results/reports are published in the

banks website periodically for
information of public as well as all
stakeholders which would give an idea
about the policies of the bank and
implementation thereof.

4(1)bviii A statement of the boards,

Bank has appointed various committees

councils, committees and other

for different purposes. Following are

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bodies consisting of two or

some of the important Committees

more persons constituted as its

managing the key affairs of the Bank:

part or for the purpose of its

a. Risk Management Committee.

advice, and as to whether

meetings of those boards,

b. Asset Liability Management

councils, committees and other

Committee

bodies are open to the public, or

c. Audit Committee.

the minutes of such meetings

are accessible for public

d. Central Management Committee.

e. Board of Directors.
Public are not entitled to participate on
the above committee meetings and
minutes are not accessible to public.

4(1)bix

A directory of its officers and

Since the number of employees is quite

employees.

large and they are subject to transfers, it

is not possible for the Bank to publish
the list of officers/employees and keep
the same updated from time to time.
Any person interested in seeking the
information about any officer or
employee of the Bank can approach
the CPIOs of the respective Region or
Zone in that behalf.
The list of offices/branches is already
available in the website for reference by
[15]

public.
4(1)bx

The monthly remuneration

Pay scales of employees/officers may

received by each of it officers

be published.

and employees, including the

system of compensation as
provided in its regulations.
4(1)bxi

The budget allocated to each of

There are no plans and budgets for

its agency indicating the

expenditure of public money and

particulars of all the plans,

disbursements and the provision is not

proposed expenditures and

applicable to Central Bank of India.

reports on disbursements made.

4(1)bxii

The manner of execution of

There are no subsidy programmes or

subsidy programmes including

plans for lending activities of the Bank

the amounts allocated and the

as a whole except for targets for priority

details of beneficiaries of such

sector lending. There are

programmes.

different schemes for advances of the

Bank and the terms and conditions are
already available in the Banks website.

4(1)bxiii Particulars of recipients of

There was no programmes in the Bank

concession, permits or

for grant of concessions, authorization

authorizations granted by it.

etc., and there is no material in the Bank

relevant to this provision.

4(1)bxiv Details in respect of the

All the general information

information available to or held

regarding deposits, advances and other

by it reduced in an electronic

services officered by the Bank are

form.

already available in the banks website.

[16]

4(1)bxv. The particulars of facilities

The list of toll free numbers/telephone

available to citizens for

numbers has already been published on

obtaining information including the website. The public can approach

the working hours of a library or theACPIOs for information regarding
reading room if maintained for

banking products for details of which

public use.

are not available in the website.

4(1)bxvi The names, designation and

Mr. Raj Kiran Rai, General Manager

other particulars of the Public

(HRD) at Central office has been

Information Officers.

designated as Appellate Authority for

Central office.

Companys Mission
To transform the customer banking experience into a fruitful and enjoyable one.

To leverage technology for efficient and effective delivery of all banking services.

To have bouquet of product and services tailor-made to meet customers aspirations.

The pan-India spread of branches across all the state of the country will be utilized to further
the socio economic objective of the Government of India with emphasis on Financial Inclusion.

[17]

Our Vision
To emerge as a strong, vibrant and pro-active Bank/Financial Super Market and to positively
contribute to the emerging needs of the economy through consistent harmonization of human,
financial and technological resources and effective risk control systems
Top Competitors

Bank of Baroda

Federal Bank Ltd.

IDBI Bank Ltd.

Indian Bank

Indian Overseas Bank

Karur Vysya Bank Ltd.

Oriental Bank of Commerce

Punjab & Sind Bank

Union Bank of India

Products:

Deposits

Money Multiplier Deposit Certificate (MMDC)

Monthly Interest Deposit Receipt (MIDR)

Quarterly Interest Deposit Receipt (QIDR)

Central's Senior Citizen Deposit Scheme

Central's Flexi Yield Deposit Scheme

Cent Bachat Khata

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Traveller's Cheques

Gift Cheques

Mutual Funds

Debit Cards

Credit Cards

Services:

Bank Assurance Depository Services

Cash Management Services

Central Card Electronic Services

THEORITICAL CONCEPT ABOUT TOPIC

INTRODUCTION TO LOANS
One of the primary functions of the commercial bank is lending. Through lending commercial
banks meet their objective of making profits. The deposits collected from the public cannot be
kept idle. It has to be utilized in order to derive benefits out of it. The bank collects deposits with
the objective of lending and makes profit out of the interest received and paid. Their main aim is
to deal in money and provide for those who need it. The banker performs the job of lending
within the framework of statues governing the banking business, the government policy and
guidelines issued by the authorities of the country (RBI in India).The basic objective of
nationalization of commercial banks was to provide funds to the neglected

sectors like

agriculture, tiny industries and other weaker sections of the society. Today nearly 40% of the
total commercial bank advances are the priority sectors. Greater part of the commercial bank
funds are employed in the form of loans and advances. Loans bring good money to the bank in
[19]

the form of profit by charging interest. Lending function of a commercial bank benefits the bank
in the form of profit and the one who takes loans enjoy the benefit of money required for their
activities. The wheels of industry cannot run without the bank advances. The bank needs to
assess the condition of industry or trade or any business enterprise while making advances.

SHORT TERMS LOANS FINANCED BY COMMERCIAL BANKS

Commercial banks are the most important source of short-term capital. The major portion of
working capital loans are provided by commercial banks. They provide a wide variety of loans
tailored to meet the specific requirements of a concern. The different forms in which the banks
normally provide loans and advances are loans and advances are loans, cash credit, overdrafts,
purchasing and discounting of bills.
LOANS:
When a bank makes an advance in lump-sum against some security it is called a loan. Here, a
specified amount is sanctioned by the bank to the customers. The loan amount so sanctioned is
paid to the borrower either in cash or by credit to his account. A certain amount of interest has to
be paid by the borrower for the loan that has to be borrowed. A loan can be repaid in lump-sum
or in installements. Commercial banks generally provide short term loans up to one year for
meeting the working capital requirements. But these days, term loans exceeding one year are also
provided by banks. The term loans may be either medium term or long term loans.
TERM FINANCING BY COMMERCIAL BANKS
Commercial banks normally provided short term financial assistance to industrial sector. The
assistance provided by them provided by them fulfilled the working capital requirement of the
industrial enterprises. A massive investment in industries during second plan and after changed
the priority of bank lending. The industrial required high funds for long term financing. The
financial institutions failed to meet the increasing demands of the industries. Then the entry of
commercial banks came into existence and filled the gap between the demand and supply of long
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term requirements. The banks started giving term loans to meet the long term needs of the
industry. The refinance scheme of IDBI encouraged more term lending by commercial banks.
The commercial banks are assisting industrial units by granting term loans, subscribing to shares
and debentures of corporate units and underwriting securities issued of these companies.

General lending policy

General Lending Policy in Relation to the business of the borrowers and the purposes for which
the advance is required. In handing a proposal relating to a particular nature of facility, apart
from the general guidelines that have given, the branches should refer to the detailed instruction
as contained in the respective instruction circulars so as to ensure that all instructions relating to
a particular type of advance are compiled with. The bank sanctions various kinds of clean /
unsecured credit facilities as well as secured credit loans, details of which the security there for
and the security documents to be obtained are elaborately explained in the security documents to
be obtained are elaborately explained in the guide documentation.It is the nature of the business
of the borrowers. In handling a proposal relating to a particular nature of , apart from the general
guideline that have been given, the branches should refer to the detailed instructions as contained
in the respective instruction circulars so as to ensure that all instruction relating to a particular
type of advances are complied with.

1.) Housing
Purchase of house/flat, construction of house/ flat , repairs/improvement/extension, Repayment
of loan availed from other agency/bank/NBFC. Indian citizen not below 21 years, singly or
jointly with other co-owners. Maximum Rs.50 lacks depends on repayment capacity subject to
net, take home salary being35% of gross income. Maximum Rs.10 lacks for repairs. However,
maximum loan amount in Mumbai and New Delhi may be considered up to Rs.50 lacks.
Maximum amount of loan may be calculated 4 times the annual gross salary or 5 times the
annual net salary of the applicant and his/her spouse whichever is higher in the case of salaried
people. The margin for purchase of new house/flat/construction 15% of cost. And for repair 30%
of cost.

2.) Security Document:

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Equitable Mortgage or simple mortgage of house/flat.

If under construction, interim security in the form of LIC/shares/national savings
certificate/Kissan vikas pattra/ mortgage of other property.
One/two guarantors whenever possible.
Loan agreement.
Letter of authority to employer in case of salaried employee.
Letter of guarantee.
Repayment of moratorium upto18 months. Maximum period should not exceed 15 years and 10
years for house repairs in equated monthly installments. Free insurance benefits such as
insurance of property against fire allied perils including earth quake and personal accident
(death) as per negotiated terms and conditions to be offered.
Other conditions finance can be extended for purchase of existing flats/house of not older than
15 years. House loan outside salaried sector can be granted only to income tax assesses in urban
areas.

3.) Vehicle loans

Purchase of new two/four wheeler for personal/professional use. Purchase of old cars of less 3
years old. The eligibility is 18 years and above. Permanent employee of central
state/defence/police/force/ autonomous bodies/public or joint sector under taking/ reputed firms/
Established Educational Institutions. Professionals having regular income. Net take home pay
(after deduction of instalment) is rs.2500 for 2 wheeler & branch and irrevocable letter from
employer to remit instalments to bank till liability is liquidated. The borrower should be
customer of the bank. Loan amount will be three times of net income/net annual salary subject
to maximum of rs.10 lacks 2of the cost of new vehicle. 50% for old cars certified by a reputed
automated certification agency. The security document should be Hypothecation of vehicle
financed by the bank. Banks lien to be noted with the Transport Authorities. Guarantee of the
spouse. In case unmarried third party guarantee of sufficient means D.P note letter of guarantee
hypothecation of vehicle.
[22]

4) Industries (other than small scale):-

To establishing a new industrial unit or for expansion of the existing unit or for modernization, a
detailed project feasibility report should be obtained. Industrial concerns are usually limited
companies or public sector undertakings, although individuals or partnerships owning small and
medium industries cannot be riled out. An industrial concern may be engaged in more than one
industrial activity and may also be engaged in other activities such as trade, import, export etc. if
the borrower is engaged in more than one type of activity for which finance is required. Credit
facilities may be extended by way of cash credit/bills discounting for working capital and by way
of term loans for acquiring capital assets namely, construction of factory building purchase and
installation of machinery, replacement of machinery etc. If the advance is required for
establishing a new industrial unit or for expansion of the existing unit or for modernization, a
detailed project feasibility report should be obtained. The feasibility plan and how advances are
proposed to be used to get with a view to satisfy about the technical feasibility, commercial
viability, financial stability and management competency
5.) Trade and commerce (other than small traders):
Trade and commerce is usually carried on by partnership firm, joint families and individuals,
limited liability companies and co-operative societies. The trade may be wholesale or retail and
principals or as distribution agents or commission agents. The business may be confined to one
or more articles of trade. The finance may be required by way of pledge or hypothecation of
commodities, for buying or holding the stocks or by way of purchase and discount of bills for
quick receipt of sale proceeds of the goods sold.
6) International trade:Manual of foreign exchange published by international banking division, central office explains
in detail various types of import and export transaction together with exchange control
requirement to be observed by bank officials as also the systems and procedures prescribed for
handling such transaction at branch level. We will see in brief, credit facilities usually extended
to the exporter/importer customers.
[23]

7.) Import trade

Finance for import trade could be either fund based or non-fund based or both. The non-fund
based credit facility is in the form of letters of credit. Since such letters of credit (L/C) contain an
undertaking by the bank to pay against presentation documents conforming to the terms and
conditions stipulated in the letter of credit, opening a letter of credit involves a credit decision for
which purpose, the proposal has to be processed in the same manner as it would be, if the
proposal were for grant of an advance for an equal amount. Since the bank relies on goods being
imported under letter of credit as a security for payment of relative bill, the marketability of such
goods, taking into account the licensing conditions should also be considered.
a)

The import of goods is controlled by government of India through import trade control
regulation. The import licenses are issued in 2 copies-customer copy is for the purpose
of clearing the imported goods through customs and exchange control copy to facilitate

remittance of foreign exchange in respect of relative import bill.

b) The funds based import finance generally takes of a back up limits to the letter of credit
limit sanctioned to a customer. Such limits are considered where import of goods is made
in economic order quantities for use in production over a period of time.
8.) Export trade:Credit facilities to exporters are broadly classified as pre-shipment and post-shipment. As
the term indicates, financial assistance extended up to the time of shipping the goods is called
pre-shipment advance, which is controlled in the books under the head Packing credit
Packing credit finance oriented finance and is granted to exporters or manufacturers or subsuppliers for the specific purpose of procuring raw materials/ purchasing/manufacturing/
processing/ transporting/ warehousing/ packing and shipping the good
9.) Retail Products:In our corporate objectives for business growth retail banking is identified as a thrust area. It is
also the need of the hour to mobilize a good portfolio of retails banking, business, as it provides a
major source for sustaining growth in the industry and will thus ensure our position in the market

[24]

place. Towards this, our personal loan products under retails banking have repackaged and relaunched.

PRODUCT PROFILE
Education Loan
Cent Vidyarthi

Purpose of Loan

For pursuing higher studies, in India & Abroad

Eligibility

The student should be an Indian National.

Should have secured admission to a higher education course in
recognized institutions in India or Abroad through Entrance Test/ Merit Based
Selection process after completion of HSC(10 plus 2 or equivalent).
Where there is no entrance test/merit based selection process and
admission is purely based on the marks scored in qualifying examinations, the
student should have scored minimum 50% marks in qualifying examination.
(10% relaxation for SC/ST categories)

[25]

Nature of Facility

Term Loan
Expenses considered for loan

Fee payable to college/ school/ hostel

Examination/ Library/ Laboratory fee
Travel expenses/ passage money for studies abroad
Insurance premium for student borrower, if applicable
Caution deposit, Building fund/refundable deposit supported by
Institution bills/receipts.
Purchase of books/ equipment's/ instruments/ uniforms
Purchase of computer at reasonable cost, if required for completion of
the course
Any other expense required to complete the course - like study tours,
project work, thesis, etc.
While computing loan required, scholarships, fee waiver etc., if any
available to the student borrower may be taken into account

Maximum loan amount

Rs. 10 lakh for studies in India.

Rs. 20 lakh for studies abroad.

[26]

The ceilings fixed for studies in India and abroad correspond to the limits
fixed by the RBI for treatment as priority sector lending.
No maximum celling if loan amount secured by 100% collateral security.

Margin

Upto Rs. 4 lacs: NIL,

In India Above Rs. 4 lacs: - 5% ,
In Abroad Above Rs. 4 lacs: - 15% Margin
(Scholarship may be included in margin.)

Rate of Interest

Type of Borrower
Male Students
Female SC,ST,IIT

Rate of interest
Base Rate+2.00%
Base Rate+1.50%

students

Incentive

1% interest concession may be provided by the bank during the study

period, if interest is serviced during the study period and subsequent moratorium
period prior to commencement of repayment.
Interest is calculated at simple basis during Repayment Holiday /
Moratorium Period. Interest will be compounded on monthly rests from due date
[27]

of first installment.

Disbursement

Payment directly to college / hostel / mess / airlines etc. In appropriate

cases disbursement to be made to borrowers subject to satisfactory evidence.
Original receipts to be submitted.

Repayment

Repayment to commence 12 months after completion of studies or 6

months after securing job whichever is earlier.
Maximum repayment period upto 10 years for loans upto Rs.7.50 lakh
Maximum repayment period upto 15 years for loans above Rs.7.50 lakh.
Repayment on EMI basis.
Security

Upto Rs 4 lacs

Parent(s)/guardian to be joint borrower(s).

Assignment of future income of the student for payment
of loan installments.
No security.

[28]

Above Rs.4 lacs and Besides the Parent(s)/guardian executing the

upto Rs7.5 lakhs

documents as joint borrower(s), collateral security in

the form of suitable third party guarantee will be taken
along with the assignment of future income of the
student for payment of installments.

Above Rs.7.5 lakhs Parent(s)/guardian to be joint borrower(s).

Tangible collateral security of minimum value
equivalent to the loan amount and acceptable to bank,
along with the assignment of future income of the
student for payment of installments.

Insurance

Comprehensive life insurance policy for the student availing Educational

Loan equivalent to loan amount, for a minimum period of loan term (i.e., course
period + moratorium period + repayment period) should be obtained and
assigned in favor of the Bank.

Central sector interest subsidy scheme:

It need to be noted that while the Central Sector Interest Subsidy Scheme

[29]

of MoHRD is based on 'IBA Model Educational Loan Scheme', the subsidy is

applicable only for loans given for Professional and Technical courses (after
12th standard) in India.
It may also be noted that even loans in excess of Rs. 10 lakh qualify for
interest subsidy under Central Sector Interest Subsidy Scheme of MoHRD for
loans up to Rs.10 lakh.

Educational Loans to students under Management Quota

Educational Loans to students under Management Quota are not covered

under IBA Model Education Scheme.
These loans are not eligible for Central Sector Interest Subsidy Scheme of
MoHRD.
However, Branches can consider educational loans under management
quota seats where employment potential is available, subject to the following
conditions:

Fee Structure

The payment/reimbursement of fees is restricted

to fee structure as approved by the State Government /
Government approved regulatory body for payment
seats.
It should be ensured that the student should

Security

have the financial resources to meet the funding gap.

Parent(s)/guardian to be joint borrower(s).

[30]

Irrespective of loan amount, 100% tangible

collateral security of minimum value equal to loan
amount and acceptable to bank should be obtained
along with assignment of future income of the student
for payment of instalments.
All other terms and conditions as applicable for

Others

Centvidyarthi Scheme shall be complied with.

Processing Fees

No processing / upfront charges may be levied on loans for studies in

India sanctioned under the scheme.
For studies abroad, Rs.500/- for loan up to Rs.10 lakh and Rs.1000/- for
loan above Rs.10 lakh will be charged while considering the applications, but
refunded when loan is availed by the student i.e. within 6 months from the date of
sanction

Cent Home Loan Scheme

Purpose

For construction / acquiring of new or existing house/flat not older than 30

years.
For extension in the existing house/flat.
[31]

For repairs/renovation/alteration of existing house/flat.

Finance may be granted for purchase of plot obtaining declaration from the
borrower that he/she/they undertake to construct the house on the plot within the
period of two years.

Eligibility

Individual/salaried employees/ self-employed persons /professional, any

other person having a legal, identified and regular source of income.
Quantum of loan

90% (for loans up to Rs.20 lakh) 80% (for loans above Rs.20.00 lakh and
upto Rs. 75 lakh) and 75% (for loans above Rs.75 lakh) of the cost of construction /
purchase of new / existing home/flat or cost of extension of existing home/flat,
(including cost of land) subject to Net Take Home Pay/Income norm. (Stamp duty,
registration and other documentation charges, cost of life insurance cover on the
life of the borrower should not be included in cost of housing unit).
75% of the cost of repairs/renovations/alterations of existing house/flat
subject to a maximum of Rs.10.00 lakh subject to Net Take Home Pay/Income norm.
75% of the cost (registered value) of Plot after complying with Net Take
Home Pay/Income norm. Plot on standalone basis should not be financed. Cost of
the Plot should not exceed 75% of the total cost of housing unit.

[32]

Margin

Loans upto Rs.20.00 lakh :

(a) Minimum 10% for construction / purchase of new/existing flat / house
extension.
(b)Minimum 25% for repairs / renovation / alteration of existing house/
purchase of plot.

Loans above Rs.20.00 lakh and upto Rs.75.00 lakh :

(a)Minimum 20% for construction / purchase of new / existing flat / house
/extension of house.
(b)Minimum 25% for repairs / renovation / alteration of existing house/ purchase of
plot.

Loans above Rs.75.00 lakh:

(a)Minimum 25% for construction / purchase of new / existing flat / house
/extension of house and for repairs / renovation / alteration of existing house/
purchase of plot.

[33]

Security

Equitable/Registered mortgage of the property being financed.

Where mortgage of the property being financed is not possible, for instance,
in case of purchase of house/flat on first power of attorney, other tangible securities
such as mortgage of some other property, pledge of bank's FDR/ LIC policy/Govt.
Securities, NSCs, KVPs, IVPs, Bonds, etc. equal to 125% of the loan amount may
be taken as security.

Guarantee

Condition of Guarantee is waived for salaried individuals irrespective of

loan amount.
In case of self-employed /others for loans up to Rs.20.00 lakh, no guarantee
is required.

Repayment

For construction/acquiring of new or existing house/flat not older than 10

years, maximum period of 30 years or on borrower reaching the age of 70 years
whichever is earlier.

[34]

Rate of Interest

Presently Rate of interest on Housing Loan is as under

Loan amount

Rate of interest

Loan upto Rs.75 lakh

BR+0 =10.25% (Floating)

Loan above Rs. 75 lakhs

BR+0.25=10.50%

( Floating)

BR = BASE RATE (PRESENT BASE RATE 10.25%)

Processing Charges

0.50% of the loan amount subject to maximum of Rs.20,000/-

Prepayment

Charges

No prepayment charges.

[35]

Takeover of loan

Takeover of loan from other Bank/FI is allowed on certain terms and

conditions

Net Take Home Pay

For borrowers with annual income upto Rs.5.00 lakh, the Net Take Home
Pay/Income should not be less than 35% of Gross Monthly Salary/Income after
including the income of the co-borrower/s. This can be relaxed upto 30% for
borrowers with annual income above Rs.5.00 lakh but upto Rs.10.00 lakh and upto
25% for borrowers with annual income above Rs.10.00 lakh.

Housing Loans to NRI

Non-Resident Indians holding Indian Passport can also be sanctioned Home

Loan on the above terms and conditions.
PIO Cardholder (Person of Indian Origin) and OCI (Overseas Citizen of
India) who is possessing foreign passport can also be sanctioned Home Loan.

[36]

RESEARCH OBJECTIVE
Primary objective:
Analysis of loans and advances of Central bank of India
Secondary objective:

To understand the terms and conditions of various loan schemes provided.

To study and evaluate the performance of each loan scheme.
To study about the respondent and their varying interest.

SCOPE OF THE STUDY:

The operational jurisdiction of the research is limited to Central bank of India. The scope

covers all loan schemes of CBI.

The study is mainly concentrated on the lending practises pattern and influence in the

organisation performance.
This project is mainly concerned with the lending practises in the nationalised bank of

issuing various securities.

The study enables the company to know its current position.
To know and to set its objectives and goals.
The study helps in ascertaining peoples response on bank lending.

RESEARCH METHODOLOGY:
This refers to the method of data description. Descriptive research includes surveys and fact
finding enquire of different kinds. The major purpose of descriptive research is description of
[37]

the state of affair as it exists at present. In business research we quite often use the term export
facto research for descriptive research studies.
The main characteristics of this method is that the researcher has no control over the variable, he
can only report what has happened or what is happening. The method of research utilised in
descriptive research are survey methods of all kinds including comparative and correlation
methods.

DATA COLLECTION TOOLS:

Data mainly collected from both primary and secondary sources.
PRIMARY DATA: Primary data are freshly gathered for a specific purpose or for a specific
research project. Primary data was collected by way of discussion with company officials.
Mainly with bank manager. It has colled through the interim schedule, discussion and by
interacting with the officials of the organization or the respondents.
SECONDARY DATA: Secondary data that were collected through published materials like
pamphlets, company books and from the official website that is www.centralbankofindia.co.in
TOOLS AND TECHNIQUES:
Information has to be collected on the basis of the questionnaire distributed to the borrowers
Internet/ prominent search engines have been used for collecting the Data, market watch is also
used to some extent for interpretation analysis.
All data collected are carefully classified, tabulated for the purpose of research and interpreted
on the basis of charts and tables.

Sampling Design
1. Sampling Area:
For this survey I have covered the credit department of the organization Central bank of India

2. Sampling Population:

[38]

In order to take a reasonable sample size and not to disturb the functioning of the organization, a
sample size of reasonable strength of the Company has been taken in order to arrive at the
present practices of training in the Company.
Accordingly, 7 officers and 10 workers have been selected at random from all the departments of
the organization and feedback forms (questionnaire) have been obtained. The data has been
analyzed in order to arrive at present training practices in the organization.

3. Sampling Unit:
The technique of Random Sampling has been used in the analysis of the data.
My sampling unit were the customers who use the product and avail the service of Central bank
of India..

4. Sampling Technique
Simple random sampling. Every member of the population has an equal chance of
selection. I have used simple random sampling for our project

No. of Questions: Total no. of questions is 9

Types of Questions: Open & closed end questionnaires

[39]

Q1. On which bank you depend for your regular transaction?

( )

No. of People
CENTRAL BANK OF INDIA

50%

ICICI

20%

PUNJAB NATIONAL BANK

OTHER

20%
10%

TOTAL NO. OF PEOPLE

100

SALES
CBI

ICICI

PUNJAB NATIONAL BANK

OTHER

5%
25%
50%
20%

[40]

It has been observed that approximately 50% correspondents are using the service of CBI for their
daily transaction, around 20% of people are using ICICI Bank for their transaction, 20% & 10% of
people are using HDFC & other Bank service respectively in New delhi It also shows that CBI have
the highest market position in Delhi as per my sample
Q2. Are you aware of products & services provided by CBI?

YES

85%

NO

15%

Total No. of People

100

NO; 15%

YES; 85%

[41]

From the above data it is clear that most of the customers (around 85%) of Delhi have the idea about
the product & services of CBI, the rest 15% have the idea about the product they are using. In this
15% most of the people are from typical rural area (Farmers).

Q3. If yes are you aware of the advance products (Loan segments) of CBI?

YES

95%

NO

5%

TOTAL NO. OF PEOPLE

100

[42]

% OF PEOPLE
5%
YES
NO
95%

It is clear that most of the people have the idea about the advance product of CBI. Almost all the 95%
people who have the idea about the advance product are the user of CBI product & service.

Q4. Which bank you prefer for taking loans?

75%
CBI
ICICI

15%

PUNJAB NATIONAL BANK

8%

OTHER

2%

[43]

TOTAL NO. OF PEOPLE

100

SALES
CBI

ICICI

PUNJAB NATIONAL BANK

OTHER

5%
25%
50%
20%

According to my sample size 75% of people prefer CBI for loan product, but some people prefer
ICICI, PNB or OTHER Bank for loan because they are working with that bank & it is easier for them
to get loan from their bank & it easier for them to pay the interest because it is less as compare to
other bank because they are the employee of that bank.
Q5. If you prefer CBI for taking loan than what influence you to take Loan from CBI?

Most of the people said that they prefer CBI for taking loan because of the transparency and the
lowest interest rate for any kind of loan product. And it is easy to get loan from CBI as compare to
other bank because less paper work is require and as it is the largest govt. bank in India and having
partnership with RBI (Reserve Bank of India) and other association, it is easier for CBI to give loan
to people with a longer repayment period.
Q.6 Which loan product of CBI you have used?
HOME LOAN

40%

EDUCATIONAL LOAN

30%

[44]

CAR LOAN

15%

PERSONAL LOAN

10%

OTHER

5%

TOTAL NO. OF PEOPLE

100

SALES
HOME LOAN

EDUCATION LOAN

PERSONAL LOAN

OTHER
10% 5%

15%

CAR LOAN

40%

30%

From the sample size 85% of people are using the CBI loan product. From the 100 people 40% of
people took home loan from CBI. 30% of people took education loan for their children, 10% of
people took car loan from CBI. Some of the customer took 2 type of loan from CBI like both car &
educational loan and home & car loan. 5% of people took personal loan.

Q7. What do you feel about the services providing by CBI in advance product?

Bad

0%

Satisfactory

2%

Good

55%

Excellent

43%

TOTAL NO. OF PEOPLE

100

[45]

CUSTOMER PERCEPTION TOWARDS THE SERVICE PROVIDE BY SBI IN ADVANCE PRODUCT

2%
43%
55%

BAD
SATISFACTORY
GOOD
EXCELLENT

From this it is clear that the service provide by CBI in its advance product is good in between the
customer. All of them satisfy with the product provide by CBI. 55% of people said that the service
provide by CBI is good & 43% said it is excellent & just 2% of people said that it is satisfactory.

Q8. Which features you like most in Loan segments of CBI?

LESS PAPER WORK

3%

ATTRACTIVE INTEREST RATE

35%

TRANSPARENCY

20%

SIMPLE AND FAST PROCESSING

2%

LONGER REPAYMENT PERIOD

40%

[46]

TOTAL NO. OF PEOPLE

100

FEATURES LIKE BY CUSTOMER

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Most of the people like the attractive interest rate & longer repayment period. Its easier for people to
repay the whole loan amount with its interest with low interest rate and with longer repayment
period.

PAST YEAR BALANCE SHEET

Capital and Liabilities:

Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves

Mar '14

Mar '13

Mar '12

12 mths

12 mths

12 mths

2,967.44
1,350.44
0.00
1,617.00
12,821.12
0.00

2,661.58
1,044.58
0.00
1,617.00
12,651.27
0.00

2,353.12
736.12
0.00
1,617.00
8,201.45
1,896.96

[47]

Net Worth
Deposits
Borrowings
Total Debt
Other Liabilities & Provisions
Total Liabilities

Assets
Cash & Balances with RBI
Balance with Banks, Money at Call
Advances
Investments
Gross Block
Accumulated Depreciation
Net Block
Capital Work In Progress
Other Assets
Total Assets
Contingent Liabilities
Bills for collection
Book Value (Rs)

15,788.56
240,068.9
9
22,079.78
262,148.7
7
11,558.90
289,496.2
3
Mar '14

15,312.85

12,451.53

226,038.31

196,173.33

18,305.51

12,919.60

244,343.82

209,092.93

8,472.87

8,255.29

268,129.54

229,799.75

Mar '13

Mar '12

12 mths

12 mths

12 mths

11,926.63
451.40
177,315.1
7
86,135.14
2,804.39
0.00
2,804.39
0.00
10,863.49
289,496.2
2

13,560.17
532.04

13,114.18
1,012.42

171,935.84

147,512.85

72,603.79
2,684.75
0.00
2,684.75
0.00
6,812.95

59,243.27
3,770.80
1,296.89
2,473.91
0.00
6,443.11

268,129.54

229,799.74

46,881.78
18,732.82
131.11

50,885.06
14,183.44
121.42

96,224.25
0.00
104.94

FINDINGS
From this project it is found that CBI advance product having the 1 st place in the market at
New delhi, there is a great opportunity to compete with ICICI Bank & to retain its customer
by fulfilling the requirement of customer in CBI advance product.
[48]

 It has been observed that approximately 85% correspondents are using advance product of
CBI and 15% are not using any type of advance product of CBI in New delhi
All of CBI customers are satisfied with the services provided by the bank.
Many of these customers satisfied with the low interest rate and longer repayment period of
the advance product.
Most of the customers at Bhubaneswar prefer to take loan from CBI.
Approximately 43% of advance product users said that the service of CBI in advance product
is excellent.
A response from customer care is so clear & good.
Many customers have no time to call customer care so that they are not able to know about
the service & features of CBI advance product.
Most customers are shifted from other banks advance product to CBI because of hidden
charges, high interest rate, less repayment period.
Government employees are more concern than private employees for advance product.

REASONS FOR HIGHLY USE OF CBI ADVANCE PRODUCT:

LESS PAPER WORK

ATTRACTIVE INTEREST RATES
TRANSPARENCY
SIMPLE & FAST PROCESSING
LONGER REPAYMENT PERIOD
QUICK PROCESSING

LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm and careful planning there are
several limitations, which handicapped the research viz,

1. Time Constraints:

[49]

The time stipulated for the project to be completed is less and thus there are chances that some
information might have been left out, however due care is taken to include all the relevant
information needed.

2. Sample size:
Due to time constraints the sample size was relatively small and would definitely have been more
representative if I had collected information from more respondents.

3. Accuracy:
It is difficult to know if all the respondents gave accurate information; some respondents tend to
give misleading information.
4.

It was difficult to find respondents as they were busy in their schedule, and collection of data
was very difficult. Therefore, the study had to be carried out based on the availability of
respondents

Suggestion & Recommendation

Customer awareness programme is required so that more people should attract towards
advance product.
If there are any kind of hidden charges than that must disclose to customer before giving loan
to them.

[50]

 CBI must take some steps so that customers can get their loan in time. Like phone
verification by customer care that one customer is got their loan on time or not .It must be
before a certain date so necessary steps can be taken.
CBI should more concern about physical verification rather than phone verification so it will
avoid fraud or cheating.
Advance product selling agents must not give any type of wrong information regarding
advance product.
For the better service new offers would be require.
CBI customer care should more concern about the fastest settlement of customer problems.
Before deducting or charging any monetary charge CBI must consult with customer.
Agents should be trained, well educated & proper trained to convince the people about
different advance product.
It is the duty of the bank to disclose all the material facts regarding advance product, like
interest charged, repayment period, other types of charges, etc.
Special scheme should be implemented to encourage both customer and agents.
The bank should increase the period for repayment of loan.
CBI should more focus on Retaining existing customers.
SBI must focus on Segmentation based on customer knowledge Product offering based on
customer demand.
CBI must take feedbacks of customers regarding features & services .

Conclusion
From the analysis part it can be conclude that customers have a good respond towards CBI advance
products in NEW DELHI. CBI is in 1st position having large number of customers & providing good
services to them. The bank has a wide customer base, so the bank should concentrate on this to retain
these customers.

[51]

In present scenario CBI is the largest advance product issuer in India. Within a very short period of
time the achievement made by CBI is excellent, what a normal bank cannot expect, but it is being
done by CBI. It happens due to employee dedication towards the organization, fastest growing Indian
economy, & brand image.
To be the largest advance product issuer, CBI should focus on

Launch Innovative product

Customized advance products
Better customer services
Fastest customers problem solving techniques
Customer retention

Apart from all the above, CBI believe in providing good customer services to their customers which
is a key factor for success in future.

Bibliography

Indian financial system

Credit Management

Machi Raju
Arun Chatterjee

[52]

Websites

http://www.rbi.org.in

http://www.google.com

http://www.centralbankofindia.co.in

Questionnaire
Name - _____________________________________

[53]

Occupation-__________________________________

Contact Detail -_______________________________

Q. On which bank you depend for your regular transaction?
a)
b)
c)
d)

CBI
ICICI Bank
PUNJAB NATIONAL BANK
Other Bank, Specify (_____________)

Q. Are you aware of products & services provided by CBI?

a) YES
b) NO

Q. If yes are you aware of the advance products (Loan segments) of CBI?
a) YES
b) NO

Q. Which bank you prefer for taking loans?

a)
b)
c)
d)

CBI
ICICI Bank
PUNJAB NATIONAL BANK
Other Bank, Specify (_____________)

Q. If you prefer SBI for taking loan than what influence you to take Loan from CBI?
_____________________________________________________________________________________
_____________________________________________________________________________________
______________________________________________________________________________
Q. Which loan product of CBI you have used?
a) Home Loan
b) Education Loan
[54]

c) Car Loan
d) Personal Loan
e) Other Loans, Specify ( ______________ )
Q. What do you feel about the services providing by CBI in advance product?
a) Bad
b) Satisfactory
c) Good
d) Excellent
Q. Which features you like most in Loan segments of CBI?
a) Less paper work
b) Attractive interest rate
c) Transparency
d) Simple & fast processing
e) Flexibility to choose an EMI base loan or an overdraft
f) Longer tenure lone for ease of repayment
g) Specially design product for self employed
h) Any other feature, specify ( _____________ )
Q. Any suggestion you want to give for the betterment of CBI advance product.
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