Corporation Bank BBM Project

CORPORATION BANK
Chapter 1-Introduction
Origin of Bank
Definition of Banking
Vision of Banks in India
Objectives of the Study
History of Banking
Functions of Banker
Indian Banking Industry
B.B.M., ATNCC, Shimoga Page No. 1

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INTRODUCTION
ORIGIN OF BANK
Today Bank has become part and parcel of our life. Apart from their traditional
business oriented functions, they have now come out with national responsibilities. Banks
accelerate the economic growth of the country and steer the wheels of the country
towards its goal of self reliance in all fields. It naturally arouses our interest in knowing
more about the origin of bank.
The first banks were probably the religious temples of the ancient world. It was
probably established sometimes during the third millennium BC. Banks probably
predated the invention of money. There are extant records of loans from the 18 th century
BC in Babylon that were made by temple priests or monks to merchants.
Since the banking activities were started in different countries, there is no

unanimous view regarding the origin of the word ‘Bank’. The word ‘Bank’ is said to have
derived from the French word ‘Banco’ or Bancus’ or ‘Banc’ or ‘Banque’ which means a
‘bench’.In fact the early Jews in Lombardly transacted their banking business by sitting
on benches. However, Macleod in his book,’Theory and Practice of Banking’ has
expressed a different view. According to him the money changes were never called
‘Benchieri’ in the Middle Ages. So, this derivation may be a mere conjecture.
Another common-held view is that the word ‘Bank’ might be originated from the
German word ‘Back’ which means a joint stock fund. In due course, it was Italianised
into ‘Banco’, Frenchised into ‘Bank’ and finally Anglicized into ‘Bank’. This view is
most prevalent even today.
DEFINITION OF BANKING
The word bank is derived from the Italian word ‘banca’, Latin word ‘bancus’ and
French word ‘banque’, all meaning a table or bench where business was transactions took
place. In Italy between 1200 and 1600 money changing business was done on benches in
the streets of Florence, Rome, Venice and so on. The German word banck means a joint
stock firm. Modern banks do reflect the character of a joint stock business.

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A bank is an institution, which borrows, lends out money and creates credit.
Banks are often described as “factories of credit”, “manufacturers of money” and the
“purveyors of credit”. Normally a bank receives deposits from the public and supplies
credit to manufacturers, businessmen, agriculturists, artisans and other productive agents
in the economy.
According to Kinley, “A bank is an establishment which makes to individual such

advances of money as may be required and safely made, and to which individuals entrust
money when not required by them for use”. In the words of Hart, “ A banker is one who
in the ordinary course of his business, receives money which he repays by honoring
cheques of persons from whom or on whose account he receives, it”, his own and other
peoples”.
The Indian banking system is financially stable and resilient to the shocks that
may arise due to higher non-performing assets (NPAs) and the global economic crisis,
according to a stress test done by the Reserve Bank of India (RBI).
VISION OF BANKS IN INDIA

The banking scenario in India has already gained all the momentum, with the
domestic and international banks gathering pace. The focus of all banks in India has
shifted their approach to 'cost', determined by revenue minus profit. This means that all
the resources should be used efficiently to better the productivity and ensure a win-win
situation. To survive in the long run, it is essential to focus on cost saving. Previously,
banks focused shifted their approach to the 'profit' model, which meant that banks aimed
at higher profit maximization.
OBJECTIVES OF THE STUDY

1. To make study of “Lending and Recovery Management in Corporation Bank”
2. To know the effective utilization of credit facilities provided by the bank.
3. To study the various corp loan facilities are available to customer.
4. To study the establishment, growth and progress of customer service provided by

the Bank.

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5. To know the opinion of the customer regarding lending and recovery facilities
provided by the bank.
HISTORY OF BANKING
Banking developed earlier than coinage of money. Receipts came to be used for
transfers not only to depositors but also to the third parties. In ancient Egypt, banking
started with harvests being stored in the state warehouses. It was also the general method
of payment of debts to other person including tax gatherers, priests and traders. Banking
exists in India from time immemorial. The writings of Manu and Kautilya contained
references to Banking. But modern banking is of recent origin which started in India only
in the dawn of 19th century.
Corporation Bank, being one of the oldest banks in India, is also an organization
board on the tradition of Indian values of services to the community and is regarded as
one of the well- run public sector Banks in the country. Corporation Bank is one of the
leading public sector Banks in India, which is established in the year 1906.The bank was
founded by a group of eminent citizen under the leadership of Late Khan Bahadur Haji
Abdulla Haji Khasim Sahib Bahadur with the motto ‘Sarve Jana Sukino Bhavanthu’,
which means prosperity to all with its strategic business focus, innovative spirit, product
risk management system, infusion of technology, the bank has emerged as a premier
Banking institution in the public sector.
Corporation Bank has brought about a virtual distinction between personnel and
human resource function by introducing 3T framework transactional, transformation
activities and programs.
Money is one of the much talked-about commodities. There are fables and
fantasies connected with money. People will do almost anything for money, as much as
money will do almost anything for people. Money is a circulating, captivating and
motivating puzzle both for the poor and the rich. The universality, uniqueness and utility
of money are such that its possession or dispossession can make people glad or sad, bad
or mad.

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Bank is a unique institution that creates money and acts as a financial

intermediary at the same time. Banking is as old as civilization, says the World Bank
encyclopedia. In the New Testament there are significant references to “money changing”
activities done in temples of Jerusalem. In ancient Greece, around 2000 BC the temples of
Ephesus, Delphi and Olympia served as depositories of people’s surplus funds and a
center of money-lending transactions. Similar references are also found in the ancient
history of Assyria. Phoenicia, Egypt and Rome. Vedic period’s literature mentions about
the money and banking activities in India too. Manu the great law-giver of India speaks of
the earning of interest as the business of the vaishyas (a community).Banking in ancient
Rome suffered oblivion after the fall of the mighty Roman Empire in 565 AD but had a
new beginning with the revival of trade and commerce in the Middle Ages. Jews were
known for money lending business during this period.Raising financial requirement of the
monarchial governments was an added reason for the development of early banking
activity. As Adam Smith observes, in Italy banks lent to the governments.
Alfred Marshall in his Money, Credit and Commerce (1923), refers to the
activities of private money changers who reduced many a metallic currency more or less
exactly, to a common unit, accepted deposits and gave loans, both for interest.
In India, the first Joint Stock Bank was the bank of Hindustan established in
1770.In 1806; the East India Company established three presidency banks (Calcutta,
Bombay and Madras respectively).Till 1862 they had the right of note issue. In 1881
came the Oudh Commercial Bank as a purely Indian Joint Stock Bank, followed by the
Punjab National Bank in 1894 and people’s Bank of India in 1901. These banks were
amalgamated in 1921 into a single bank called the Imperial Bank of India. It served as a
government’s bank till the arrival of a Central Bank with the name of the Reserve Bank of
India (RBI) in 1935. RBI was nationalized in 1949. It has the monopoly of note issue. It
controls scheduled Banks in India. Banking Acts in India were passed in 1946 and in
1949. The year 1969 was water shed in the banking history of India, 14 major commercial
banks were nationlised on 19th July 1969.On April 15th, 1980, six more commercial banks
in India including Corporation Bank were nationalized. The number of branches of
commercial banks today has crossed 65,450.Since 1980 and particularly with 1991s new
Economic policy under banking sector reforms, government lent force to the argument of

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privatization of banks –even foreign banks are increasingly appearing on Indian banking
scene.
A Bank is a commercial or state institution that provides financial services,

including issuing money in various forms, receiving deposits of money, lending and
processing transactions. A commercial bank accepts deposits from customers and in turn
makes loans based on those deposits. Some banks (called Banks of issue) issue banknotes
as legal tender. Many banks offer financial services to make additional profit.
Currently in most jurisdictions commercial banks are regulated and require

permission to operate. Operational authority is granted by bank regulatory authorities who
provide rights to conduct the most fundamental banking services such as accepting
deposits and making loans. A commercial bank is usually defined as an institution that
both accepts deposits and makes loans; there are also financial institutions that provide
selected banking services without meeting the legal definition of a bank. Banks have
influenced economics and politics for centuries. The primary purpose of a bank was to
provide loans to trading companies. Banks provide funds to allow businesses to purchase
inventory, and collected those funds back with interest when the goods were sold. For
centuries, the banking industry only dealt with businesses, not consumers. Commercial
lending today is a very intense activity, with banks carefully analyzing the financial
condition of its business clients to determine the level of risk in each loan transaction.
Banking services have expanded to include services directed at individuals and risk in
these mush smaller transactions is pooled.
A bank generates a profit from the differential between what level of interest it
pays for deposits and other sources of funds, and what level of interest it charges in its
lending activities. This difference is referred to as the spread between the cost of funds
and the loan interest rate. Historically, profitability from lending activities has been cyclic
and dependent on the needs and strengths of loan customers. In recent history, investors
have demanded a more stable revenue stream and banks have therefore placed more
emphasis on transaction fees, primarily loan fees but also including service charges on
array of deposit activities and ancillary services (international banking, foreign exchange,

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insurance, investments, wire transfers, etc.).However lending activities still provide the
bulk of a commercial bank’s income.
FUNCTIONS OF BANKER
Borrowing and lending are the two basic functions of a Bank. There are many
other functions which a modern banker performs. All these functions are grouped under
following heads:
1. Raising Funds
2. Lending Money
3. Discounting Bills
4. Agency services
5. Miscellaneous Services
1. Raising Funds
A Banker is a dealer in credit. The lending power of a banker depends largely on
the amounts he can borrow by way of deposits.
Bank deposits are three types: Fixed Deposits, Savings Deposits and Current
Deposits The term Fixed Deposit (also known as Time Deposit in United States) means
deposit repayable after the expiry of a certain period, which originally varies from 3
months to several years. The rate of interest on FD varies with the period for which
money is deposited.
Savings Bank Deposit account is suitable to those who want to deposit their small
savings in a bank, which they need to borrow only occasionally, and not every day or
many times a day. The interest allowed on SB deposits is certainly lower than that
allowed on FD accounts.
In case of Current Deposit Account, a customer is allowed to deposit or withdraw

moneys as and when he likes; he may do so several times a day, if he so chooses. No
interest is allowed by First Class Banks. There are various ways in which bank deposits
arise. Customers may deposit actual cash or they may deposit rights to receive cash; these
rights to receive cash may be in the form of a cheque, a bill, a promissory note owing to

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them etc. However, all the banks insist that while opening a new account, the first deposit
must be in the form of cash.
2. Lending of Money
The business of lending is usually done in the form of loans and advances,
overdrafts, cash credit and discounting of bills of exchange. It is this function of a
banker’s activities which is the largest contributor to the bank’s profit since interest
earned is the major source of income to any Banker.
3. Discounting of Bills
In this form, Banker advances money. The personal security of the drawer and
acceptor is the only security in case of Clean Bill. If the bill happens to be documentary
one, it is followed either by a railway receipt, bills of lading or a Wharfinger’s Certificate
etc., which means that the security of the drawer and the acceptor is further strengthened
by the goods which means are laying with the railway, shop or wharfinger. This type of
advance is becoming more and more popular.
4. Agency Services
Banker performs the following services as an agent of customer.
a. Collection and payment of Cheques, Bills and promissory Notes
b. Execution of standing orders
c. Collection of Dividend and Interest
d. Purchase and sales of Securities
e. Remittance of funds through Mail Transfers, Telegraphic Transfers and Bank
Drafts.
5. Miscellaneous Services
The miscellaneous services of Banker are as follows.
a. Letter of Credit
The banker issues personal as well as commercial letter of credit. This enables the
customer to make profit by the superior credit of the bank.
b. Foreign Exchange

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The commercial community receives facilities for its dealings with foreign
nationals – a fact which is also profitable business for a banker. In assisting foreign trade
by discounting foreign Bills of Exchange, a bank has sometimes to arrange for Transport,
Insurance and Warehousing of goods.
c. Safe Custody Services

The Bank provides safety to valuables of securities against theft and fire.
Normally there are two methods of ensuring safety of customer’s valuables:
(i) Bank accepts the valuables, e.g. documents of title, jewellery etc., for safe custody
(ii) Bank provides safe deposit vaults (Lockers) on hire to the customers.
INDIAN BANKING INDUSTRY

The brief structure of Indian banking is as below.
1. The Central Bank
Central bank is an important financial institution in every sovereign independent
state in modern times. It is the apex of economy’s banking system.
2. Establishment
The Reserve Bank of India was established on April 1, 1935 in accordance with
the provisions of the Reserve Bank of India Act, 1934. The central Office of the Reserve
Bank has been in Mumbai since inception. The Central Office is where the governor sits
and is where policies are formulated. Through originally privately owned, since
nationalization in 1949; the Reserve Bank is fully owned by the Government of India.
3. Preamble
The preamble of the Reserve Bank of India describes the basic functions of the
Reserve Bank as: To regulate the issue of Bank Notes and keeping of reserve with a view
to securing monetary stability in India and generally to operate the currency and credit
system of the country to its advantage”.
Central Board

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The Reserve Bank’s affairs are governed by a central board of directors. The
board is appointed by the Government of India in keeping with the Reserve Bank of India
Act.
• Appointed/ nominated for a period of four years
• Constitution:
Official Directors
 Full-time : Governor and not more than four Deputy Governors
Non-Official Directors
 Nominated by Government: ten Directors from various fields and one
government Official
 Others: four Directors –one each from local boards
The Indian banking Industry can be categorized into two as scheduled and non-
scheduled banks. Scheduled banks constitute of commercial banks and co-operative
banks .There is about 67000 branches of scheduled banks spread across India. During the
first phase of financial reforms, there was a nationalization of 14 major banks in 1969 and
1980 another 6 banks. This crucial step led to a shift from class banking to mass banking.
Since then the growth of the banking industry in India has been a continuous process.
As far as the present scenario is concerned, the banking industry in India is in a

transitional phase. The Public Sector Banks (PSBs), which are the foundation of the
Indian Banking system account for more than 78 percent of 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
witnessing immense progress. They are leaders in internet banking, mobile banking.
Phone banking, ATMs. On the other hand the Public Sector Banks are still facing the
problem of unhappy employees. There has been a decrease of 20 percent in the employee
strength of the private sector in the wake of the Voluntary Retirement Schemes (VRS).As
far foreign banks are concerned they like to succeed in India.

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Indusland Bank was the first private bank to be set up in India. IDBI, ING Vyasa
Bank, SBI Commercial and International Bank Ltd, Dhanalakshmi Bank Ltd, Karur
Vysya Bank Ltd, Bank of Rajasthan Ltd etc, are some Private Sector Banks. Banks from
the public sector include Punjab National bank, Vijaya Bank, UCO Bank, Allahabad
Bank, Andhra Bank etc.
ANZ Grind lays Bank, ABN-AMRO Bank, American Express Bank Ltd; Citibank
etc are some foreign banks operating in India.
The brief description of Banks in India is as below.
1. Commercial Banks
Commercial banks have been in existence for many decades. Commercial Banks
mobilize savings in urban areas and make them available to large and small individual
and trading units mainly for working Capital requirements.
After 1969, Commercial Banks are broadly classified into nationalized public
sector banks and private sector banks. The State Bank of India and its associate Banks
along with another 20 banks are the public sector banks. The private sector banks include
a small number of Indian Scheduled banks which have not been nationalized and
branches of foreign banks operating in India commonly known as Foreign Exchange
Banks.
The Regional Rural Banks (RRB) came into existence since the middle of 1970’s
with the specific objective of providing credit and deposit facilities particularly to the
small and marginal farmers, agricultural laborers and artisans and small entrepreneurs.
2. Public Sector Banks

• State Bank of India and its associate banks called the State Bank Group.
• Nationalized banks.
• Regional Rural banks
3. Private Sector Banks

• Old Generation private banks

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• New Generation banks

• Non Scheduled private banks
• Foreign banks
• Co-operative Banks
4. Co-operative Banks
In India, co-operative Banks has assigned an important role in the development of
vital areas such as agriculture, rural and small-scale industry, retail distribution; housing
etc. The co-operative banking sector has been developed in the country to replace the
village money lenders. They also promote savings of the farmers and meet their credit
needs for cultivation. The co-operative banking sectors are not only in rural areas but now
they have spread to urban areas also.
Co-operative banks include the following.

• State co-operative banks
• Central co-operative banks
• Primary credit societies
• Land development banks
• Urban co-operative banks
• Primary agricultural development banks
• Primary land developments banks
• State land developments banks
Development banks/industrial financial institutions are as below.

• Industrial finance corporation of India(IFCI)
• Industrial development bank of India(IDBI)
• Industrial investment bank of India(IICI)
• State industries development bank of India(SIDBI)
• National bank for agricultural and rural development(NABARD)
• Export Import bank of India
• National housing bank(EXIM Bank)

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5. Scheduled banks and non scheduled banks

Under the RBI Act, 1934, banks were classified as Scheduled banks and non
scheduled banks. The scheduled banks are those which have are included in the schedule
(second) of RBI Act, 1934. these banks have a paid up capital and reserves of an
aggregate value of not less than Rs 5 lakhs and which satisfy RBI that their affairs are
carried out in the interest of their depositors .Scheduled Banks comprise commercial
banks and the co-operative banks, In terms of ownership, Commercial banks can be
further grouped into nationalized banks, the State Bank of India and its group banks,
Regional Rural Banks and private sector Banks (old, new, domestic and foreign). These
banks have over 67000 branches spread across the country. Non-scheduled banks are
those which have not been included in the second schedule of RBI Act, 1934, at present,
there are three non-scheduled banks in India.

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Chapter 2-Company Profile
History of Corporation Bank
Organisation Structure of Sagar Branch

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HISTORY OF CORPORATION BANK

Corporation bank is the oldest banks in India, was founded in 1906 in the Temple
Town of Udupi, by a small group of philanthropists led by Khan Bahadur Haji Abdulla
Haji Saheb Bahadur. The first branch of a modern bank established in the district was the
Bank of Madras, one of the three presidency Banks, which set up its office in Mangalore
in 1868 largely to cater to the business needs of a few British firms dealing in export of
plantation products. Its agent used to visit Udupi once a fortnight or so, to do banking.
Money remittance had to be made only through postal medium during those days.
To overcome these drawbacks and also to provide banking facilities for Udupi in
particular and the district in general, a cosmopolitan group of philanthropists led by Haji
Saheb made a bold venture to start this institution.
“The Canara Banking Corporation (Udupi) Ltd.”, as the institution was called
then, started functioning as a ‘Nidhi’ with a humble beginning. The initial capital was
Rs.5, 000/- and at the end of the first day, its resource stood are 38 Rupees – 13 Anna’s
and 2 Pies.
The setting up of the Canara Banking Corporation Ltd. seems to have given a
fillip to co-operative Banking and also to regular banking elsewhere in the district.
Between 1909 and 1917, six co-operative banks came into being and during the decade
immediately after the First World War (1914-18) South Kanara gave birth to as many as
eight banks. It is to the credit of this Bank that despite two world wars, economic
depression and stiff competition, the Bank not only quite survived, but also made
satisfactory progress.
Having been started at Udupi, the Bank first branched out by opening a branch at
Kundapur in 1923. The second branch of the Bank was opened in Mangalore at Car Street
1926. The Bank stepped into Kodagu District in 1934 by opening its seventh branch in
Madikeri.In 1937, the Bank was included in the second schedule of Reserve Bank of
India Act, 1934.In 1939, the Bank’s name changes from “Canara Banking Corporation
(Udupi) Ltd.” To “Canara Banking Corporation Ltd.” The Bank graduated into a

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Regional Bank in 1945 when the total number of its branches stood at 28.In the year
1961, it took over ‘Bank of Citizens, Belgaum.’ In the same year, the Bank’s
Administration Office shifted from Udupi to Mangalore.
The second change in the name of the Bank occurred in 1972, from ‘Canara
Banking Corporation Ltd.’ To ‘Corporation Bank Limited.’ The Bank was nationalized in
1980 along with 5 other private sector banks.
After nationalization, the pace of growth of the Bank accelerated and it made all-
round progress. Started as a common man’s bank, it changed with the times to meet the
aspirations of the people but never swerved from its motto- “Sarve Janah Sukhino
Bhavantu” meaning Prosperity for All. It endeavored and succeeded in striking a right
balance between traditional values and innovative approach, personalized service and
professional outlook and commercial considerations and public concern. One of the
unique achievements of the Bank is that it has been paying dividend continuously for the
last 98 years since its inception. Today, with the most modern technology-driven products
and services and nationwide branches & ATMs, Corporation Bank stands tall among the
Public Sector Banks in the country and is hailed as one among the well-managed Public
Sector Banks with excellent track record in all the key parameters of banking. The Bank
has the second largest ATM network in the public sector.
Corporation Bank had the honor of paying host to many a distinguished

personality. During the Bank’s platinum Jubilee Celebrations in 1976, the new
Administrative Office Building at Pandeshwar Mangalore was opened by Shri B.D.Jatti,
the Vice-President of India. The bronze statue of Pt Jawaharlal Nehru installed by the
Bank at the Traffic Island in front of its Corporate Office at Pandeshwar Mangalore, was
unveiled by Mr. Justice E.S. Venkataramaiah, the then Chief Justice of India. In 1992, his
Excellency Shri R. Venkataraman, the then President of India, visited the Bank to
inaugurate its 85th anniversary celebrations and 60th anniversary of the Bank’s
commencement of operation in Tamil Nadu state. In the year 1996, Mr. Justice
A.M.Ahmadi, the then Chief Justice of India, visited the Bank to deliver the 90 th year
commenmorative lecture. ‘Corporation Bank House’, the new premises of the Bank’s Car
Street Mangalore branch, was inaugurated by Dr. Manmohan Singh, who was then the

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Union Finance Minister. Dr. C. Rangarajan, the then Governor of Reserve Bank of India,
Launched the prestigious deposit product Crop Classic during his visit to the Bank’s
Corporate Office in 1997.The Bank’s new Millennium Building was inaugurated by the
then Union Minister of State for Finance Shri Vikhe Patil in the year 2000.In the same
year, Shri Yashwant Sinha, who was the Hon’ble Union Finance minister at that,
launched the Bank’s CorpFast product at the Corporate Office. First Public Sector Bank
(other than SBI Associates) to achieve 100% CBS developed and implemented by Laser
Soft Info systems Limited, Chenni.
100yrs of Corporation Bank

Corporation Bank completed 100 years of existence on 12 March 2006. The
Centenary celebrations were launched by Shri V. Leeladhur, Deputy Governor, Reserve
Bank of India with the Bank’s Foundation Day lecture on 12 March 2005.
As a part of the Bank’s centenary celebrations, a number of programmes and

projects were planned and executes. As a first step, the Bank has launched the Corp
Kissan Card -debit card tied up with VISA international, to enable the farmers make
timely purchases for agricultural operations. At Yeshwantpur-Malur in Kolar District, the
birth place of the Bank by Shri P.Chidambaram, Hon’ble Union Finance Minister on 2
March 2006.The library building also houses a Numismatic Museum and a multi purpose
hall for intellectual activities. The Bank has also set up libraries in 25 villages and given
away scholarship to 100 meritorious students of such villages for the pursuit of their
higher education. Such libraries will be set up in 75 more villages in a phased manner.
Corporation Bank – A Corporate Journey, the history of the Bank and Haji Abdullah
Saheb a biography of the Bank’s Founder President have been published on thee occasion
of the valedictory function of the Bank’s Centenary Celebrations.

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WORK FLOW MODEL OF CREDIT DIVISION CORPORATION BANK

CREDIT PROPOSAL FROM THE
BORROWER
PROPOSAL SENT TO THE

SENCTIONING AUTHORITY
KNOW YOUR CUSTOMER (KYC)
GENERAL DISCUSSION
TERMS AND CONDITIONS

COMMUNITACTED
DATABASE CREATED
APPRISAL OF THE PROPOSAL
RISK MEETING
FINAL DISCUSSION
The following is the process of credit divisions:-

Credit proposal from the borrower
This is the first step wherein the proposal is received from the borrower for the
loan, the borrow must either be a customer or must be introduced by a certain customers,
etc. he must apply to the bank as to the loan, the reason for taking loan, etc. the amount of
the loan that the applies for must also be stated in advance.

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Proposal sent to the sanctioning authority

The proposal is sent to the sanctioning authority for evaluation of the proposal
because the final amount can only be sanctioned with the affirmation from the
sanctioning authority. This is the department that will finally sanction the amount so it
will see to it that the bank has adequate funds for lending.
Know your customer

This step is very much important because the viability of the customer can only be
assessed in this step. The customer is assessed regarding his financial feasibility and his
ability to repay the loan amount along with the interest. The customer can be assessed on
the basis of his previous dealings with the bank. Information about it can also be sought
from the person who introduced the customer to the bank.
General discussion
There is a general discussion as to granting of loans. Depending upon the amount
the proposal is sent to the zonal office, regional office and the head office. If the loan
amount is reasonably much it involves discussion with the AGM, DGM and the board.
Discussion with these people is required because their expertise and opinion can play a
major role here.
Communication of the terms and conditions

The term and conditions as to the proposal is communicated to the borrower as
regards to the loan amount that can be granted, the interest rate applicable for the type of
loan, the terms as regards to the payment of installments, the interest rate charged-
whether it is simple or compounded. The borrower must confirm his agreement to the
terms and conditions.
Database is created regarding the proposal

A database is created regarding the loan proposal –the loan amount, the interest
rate, the borrower’s name, his credentials, his income statement, etc. it must all the

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information that is required to grant the loan. The entire flow of the proposal must be in
writing.
Appraisal of the proposal

The proposal is property and carefully appraised so that finally no wrong decision
is taken.
Risk meeting
A high level risk meeting is conducted as to the proposal; legal opinion is also
sought sometimes regarding the proposal if the appraisal was not satisfactory. This risk
meeting will decide whether the loan amount can be financed with two promote banks
jointly so that the risk burden can be shared amongst the borrowers.
Final discussion
A final discussion is undertaken among all the appraisers and only if the proposal
seems to be feasible and viable to the bank in the future the proposal is accepted or else it
is rejected.
Final decision
A final decision is taken in the final discussion and it is communicated to the
borrower. He must comply with all the terms and conditions and must submit all the
documents as required by the bank.
Awards and Accolades of the Bank

The awards and accolades of the Bank are as below.
• National Award for Assistance to Exporters from the President of India (1976-77).
• Gem & Jeweler Export Promotion Council Award successively for 5 years from
1981 to 1985.
• Shiromani Award 1992 for Banking from Union Minister for Commerce.
• Best Bank Award for Excellence in Banking Technology from Institute for
Development and research in Banking Technology (IDRBT), Hyderabad (2001).

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• Best Bank Award for Innovative Usage and Application on INFINET (Indian
Financial Network) from Institute for Development and Research in Banking
Technology (IDRBT), Hyderabad (2002).
• Best Bank Award for Delivery Channels from Institute for Development and
Research in Banking Technology (IDRBT), Hyderabad (2003).
• Runner-up Award in the “Best Online and Multi-channel Banking Term” and
“Outstanding achiever of the year-corporate” categories in recognition of
outstanding achievement in Banking Technology for 2004, instituted under the
aegis of Indian Banks Association and Trade Fairs & Conference International
.
INFRASTRUCTURE
Corporation bank is the fast expanding National Bank with over 1800 service
outlets across the nation in 23 States and 2 Union territories. We are present in all most all
100 top centers in the country. We have a large presence in major Metros in India
• Delhi over 150 outlets
• Mumbai over 140 outlets
• Bangalore over 170 outlets
• Chennai over 50 outlets
• Hyderabad over 40 outlets
To serve esteemed customers with Convenience banking, Corporation bank strong

network of over 1032 ATM’s across the country.
Corporation bank is excited at the growing opportunities for business by meeting

the customer expectations exceedingly well, expanding the footprints and reaching our
brand to new destinations.
The branch of Corporation Bank in Sagar was established in the year 1936. Now it
has a main branch in heart of Sagar town and a branch at APMC yard to serve the are can
at merchants and growers. The main branch has staff strength of 13 out of which 1
manager, 3 officers, 6 clerks, 2 attainder and 1 part-time attainder.

CORPORATION BANK
THE ORGANIZATION STRUCTURE OF SAGAR BRANCH.
Manager
Officer
Clerks
Peon/Security Guard
The Bank is well known for innovations and offers and wide range of products
and services to meet the needs to various segments of the society. It is consistently
performing throughout the year and is ranked among India’s top public sector banks.
There are various division in the Bank which support the functioning of the Bank
as whole, Resource Mobilization Division, credit division, Credit Risk Management
Division , Investment and International Banking Division, Finance and Risk Management
Division, Information Technology Division, Personal Administration Division, Human
Resource Development Division, Inspection and Audit Division are some of the major
divisions in the bank.

CORPORATION BANK
Excellence in performance and uniqueness in customers service forms central core

of Banks organizational culture. The growth of confidence of its clienteles is well
reflected in the Banks performance in all critical areas of its operations all through the
years.
As a part of the Bank’s centenary celebrations, a number of programmers and

projects were planned and executes. As a first step, the Bank has launched the Corp
Kissan Card -debit card tied up with VISA international, to enable the farmers make
timely purchases for agricultural operations. At Yeshwantpur-Malur in Kolar District, the
birth place of the Bank by Shri P.Chidambaram, Hon’ble Union Finance Minister on 2
March 2006.The library building also houses a Numismatic Museum and a multi purpose
hall for intellectual activities. The Bank has also set up libraries in 25 villages and given
away scholarship to 100 meritorious students of such villages for the pursuit of their
higher education. Such libraries will be set up in 75 more villages in a phased manner.
Corporation Bank – A Corporate Journey, the history of the Bank and Haji Abdullah
Saheb a biography of the Bank’s Founder President have been published on thee occasion
of the valedictory function of the Bank’s Centenary Celebrations.
BRANCH NETWORK
Presently, the Bank has a network of 1054 Branches, 7 Extension counters, 1032
ATMs.The geographical distribution of bank are as below (Table 2.1)
Table 2.1
Category Number
Rural 521
Semi Urban 553
Urban 499
Metro 380
Total 1953
OWNERSHIP PATTERN
The bank is a public sector unit with 57.17% of share capital held by the
Government of India. The Bank came out with its initial public offer in October 1997.
After the Government of India as the major shareholder the next is LIC followed by

CORPORATION BANK
Financial institutions, mutual funds and UTI, corporate bodies, foreign institutional
investors (FII’s) and corporate bodies, NRIs and the resident Indians. Table 2.2 shows the
category of shareholders.
Table 2.2
Category of Shareholders
Sl.No. Category of shareholders % to total holding
1 Government of India 57.17
2 Life Insurance Corporation of India 26.32
3 Financial Institutions, Mutual Funds, Banks & Corporate 9.93
Bodies
4 Foreign Institutional Investors & Overseas Corporate 3.62
Bodies
5 Non Residual Indians 0.29
6 Residual Individuals 2.67
Total 100.00
CORPORATE
Corp Bank offers several Corporate Banking services. The Bank offers unique
services tailor-made for the requirement of Corporate & large business houses as well as
Small & Medium Enterprises.
Apart from the various borrowing products, the Bank offers pioneering Cash
Management Services and speedy Collection and Payment Services (CAPS) across a
network of locations in India. The vision and mission statement of bank is as below.
VISION STATEMENT:
“To emerge as the most preferred bank with global standards in financial,
efficiency, technology, products and services”.
The bank has charted out a shared vision of its centenary year 2008.The bank had
achieved a business level of Rs55,000 crores and plans to add over Rs50,000 crores by

CORPORATION BANK
2007-08. The Bank will continue its endeavors in providing high quality services to its
customers.
With its strategic business focus and innovation the bank is striving for better
performance in the coming years and has transpired as one of the efficient, strong
profitable and well capitalized bank among banks in India. To reach this height it was
never easy in the pursuit of niche banking with technology as the competitive edge, the
bank has drawn up an IT plan to provide better services to its customers. The bank aims
in a new order of process change, which not only improves the quality of service but also
improve the speed in delivery of products and services to customers.
MISSION STATEMENT:
• To become a provider of world class financial services
• To meet customer expectations through innovation and technological initiatives
• To emerge as a role model with distinct cultural identity values and good
corporate governance.
• To enhance shareholders wealth by sustained, profitable and financially sound
growth with prudent risk management systems.
• To fulfill national and social obligations as a responsible corporate citizen.
• To create an environment, intellectually satisfying and professionally rewarding to
the employees.
Customer Service and Technology

• ATM’s- with the accelerated thrust for ATM network, in tune with changes and
customer preferences, the Bank has optionalised and the total number of ATM’s
to 1032 across the country. The Bank has accelerated its technology drive during
the year by offering several innovative tailor made products and services with the
ultimate objective of delivering value to customers.
• Corp e-rail - facilitating booking of railway tickets through interest by customers
of the bank.
• Corp Kisan Card - Facility for operating comprehensive credit limits fixed for
farmers through the Banks ATMs.

CORPORATION BANK
• Corp Companion- any branch banking facility by which our customers of core
connected branches can operate their account from over 366 crores branches of
the Bank spread over 133 centres.
• Corp Power Cheque – multi city cheque facility wherein the customer can issue
cheques drawn on the base branch, payable t par at selected remote centres.
• Corp Mediclaim -facility to meet the medical insurance needs of our customers
who are holders of Corp Convenience Debit Card.
• Corp 4 in 1 Account- (variants of current accounts). A product wherein the
customer has the option to open any one of 4 types of current accounts and enjoy
graded concession in various service charges based on quarterly average balance
maintained in the account.
• Corp Quick Remit-an online remittance service for the NRI’s based in USA and
Canada which provides them a means to transfer funds to India quickly, securely,
conveniently and in a cost-effective manner through Automated Clearing House
(ACH) network in USA.
• Corp Xpress Money- a facility for fast money transfer to India for NRI’s based in
the Gulf and Middle East in association with the UAE exchange center. The Bank
has implemented the facility of Electronic recharge of prepaid mobile phones for
its card holders through Corp Bank ATM’s.
• Corp Junior and Senior Account- these are ATM based accounts for children
and parents. Sometimes parents may be in a different city and their children may
be studying somewhere else. To facilitate them to access funds without resorting
to transfer of funds from centre to centre, corp senior or corp junior accounts are
opened in their own ATM/Debit cards.
• Corp Elite Account- a premium saving account with free adds on facilities.
• Corp Net (internet banking) – it’s an internet enabled delivery channel which
allows to conduct banking even without stepping into the Bank, just by the click
of the mouse. Once can enquire, give standing instructions and even transfer funds
between accounts.
• Corp Smart- a combi card combining an electronic purse and ATM card.
• Corp Reach- the remote access facility that enables you to bank from the comfort
of your home or even your work place.

CORPORATION BANK
• Corp Convenience- (corp banks international debit card) corp convenience gives
the flexibility to pay for purchase at over 24 million outlets in India and other 240
countries. It can be used at shops, restaurants, travel agencies, hostels and quick
cash withdrawals at Corp Bank ATM’s or ATM’s that display the VISA logo
worldwide.
• Corp Payroll- a unique payroll account for disbursal of staff salaries with special
benefits to employees.
• Corp Karsuvidya- a loan facility for meeting income tax obligations.
• Corp Vault- locker facility for safety, security, reliability, to keep your jewelers,
important documents like deeds, wills and any other valuable items.
• Corp Dial (tele banking facility) - it is a specially designed tele banking facility to
take care of ones every banking information need at their doorstep. One need not
come to Bank, he can access every information by just dialing a telephone
number.
• Corp Jeevan Raksha (Life Insurance Cover)- it is a hassle free life insurance
cover of Rs 10 lakh with lowest premium for special account holders. In case of
an accident, the insurance cover is doubled.LIC offers a group life insurance
scheme namely Corp Jeevan Raksha to Corp Bank for its deposit holders. The
scheme offers pure term insurance cover under one year renewal term assurance
plan. The scheme covers risk of death only.
FUTURE GROWTH PROSPECTS

With the confidence that can only come from earning the trust of generations,
corporation bank now looks to an exciting future. In the medium term, it aims to reach a
business level of Rs.100000 crores and 10million customers by March 2009 with focus on
double bottom line. The Bank plans to open over 600 outlets in three years, taking the
tally of outlets to more than 2400 across the country. The bank has set its sight on
overseas operations and plans to open representative offices in foreign countries.
Corporation bank aims at leveraging its position as a financial institution that

combines a rich heritage with a futuristic look. Its activities will continue to assist
corporate in their business, even as it helps the common man realizes his dreams. And its

CORPORATION BANK
services shall continue to spread deeper into rural India, even as it reaches out further
across the globe.
Chapter 3-Management of Lending and

Recovery
Basic requirements of lending
Principles of sound lending
Secured and Unsecured Advances
Forms of Advances
Loan schemes

CORPORATION BANK
MANAGEMENT OF LENDING AND RECOVERY

This chapter is divided into two parts. Part-A deals with principles of sound
lending and Part-B with loan schemes.
Lending is a crucial activity for a bank as it enables it to sustain profitability. But

to sustain profitability, prudent decisions need to be taken both prior to and after
sanctioning the credit. These decisions generally relate to the amount of credit to be
extended during a financial year, the industries to focus on, the geographical spread, the
type of credit to offer, the type of proposals to finance, the disbursal mechanism, the
collateral value, the method of pricing, the repayment schedule, the monitoring process,
etc. These macro and micro level consideration of the lending activity contribute to the
achievement of the bank’s objectives. The bank’s management should thus, ensure that
lending decisions fall in the with the bank’s overall objectives.
Ultimately, the composition of the lending portfolio is determined by the

regulatory prescriptions along with the profitability purpose.
The demand for credit is on two-sides. Firstly, on the demand side of the economy
are the consumers of goods and services who require funds basically for acquiring certain
assets like consumers durables. And secondly, on the supply side, the need for credit
arises from the corporate in the manufacturing, trading and services sectors. These
corporate basically require funds for long-term investment as well as for day-today
operations. Thus, the need for credit arises from the supply side as well as the demand
side of the economy.
Thus, at any point of time, in the credit market, there will always be some players
to extend credit and a few others who will be seeking credit. However, to ensure that the
borrowing and lending take place in the credit market, the lender should meet the needs of
the borrower.

CORPORATION BANK
BASIC REQUIREMENTS OF LENDING

1. Capital
To ensure that the lending activities take place in an uninterrupted manner, a
financial intermediary needs capital first to commence its operations and second to
continue its operations as a running business. This need is even more important for a
bank, for the reason that the availability of capital enables the bank to have the same as a
buffer. This buffer is necessary since the losses if and when they arise, may be
substantial. Capital provides the margin of safety that allows the bank to continue
operations without any loss of momentum. It also helps the bank buy time, which in turn
enables it to re-establish its operational momentum.
Capital also acts as the cushion to absorb possible losses and entities that deal with
such institutions remain more protected. Such increased levels of confidence will help to
sustain not only the existence of an individual bank, but the entire financial system as
well, which is very vital for proper functioning of the economic system.
The significance of capital varies depending on the level of activity of a bank. The
requirement of capital for a bank depends on its needs for servicing its depositors, for
maintaining net worth requirements, for acquiring assets and establishing branch network
as per statutory requirements etc. Further, the need for capital also arises out of the need
for entering into fund-based activities besides performing the task of servicing its
depositors. In the context of globalization the capital requirements of banks in India and
abroad are guided by certain norms.
2. Borrower’s Constitution
Banking operations survive and thrive on the activity of lending. In the course of
lending operations banks serve varied customers with different legal capacities and
perspectives. They vary from a single individual to a group of individuals and even the
government. The requirements of the borrower will sometimes be typical depending on
the constitution of the borrower’s account.
To open a deposit account and avail a loan facility, the customer is requires to
submit certain documents. The bona fides of the customer will be reflected in these

CORPORATION BANK
documents and if the banker is satisfied the business relationship will be commenced.
These documents are vital from the view points of both the banker and customer. The
types of customers who happen to be borrowers could be individuals, partnership firms,
companies, governments, etc. The precautions that a banker takes in opening and running
of the account besides the practices followed in the operations of such account.
3. Documentation
As part of the initial exercise, during the “post-sanction” phase, the bank has to
obtain the details regarding the customer/s so as to bind him/them legally and enforce the
charge. This is possible only if the bank keeps in force the documentation for the loan/s
granted to the customer/s. It is very important for the bank to establish the primary
evidence in all disputes. Without keeping the proper documents in force, banks would not
be in a position to defend their claims against customers in courts of law.
The importance of documentation lies in the fact that with proper documentation
in force, there will not be any problem in enforcing a claim by the bank against the
customer in case of any default in repayment of the loan or in the wake of any other legal
issues.
It is important for documents to be properly filled up. It is possible that, due to

lack of information, enforcement could become impossible sometimes. When the
documents are filled in, care should be taken to ensure the ready availability of basic
information regarding the borrower/s such as constitution of borrowers, nature and type
of security offered its legality, the liability of guarantors and other statutory provisions.
4. Credit Monitoring
The post-disbursal period is very important for the banker since the health of the
asset is determined during this phase. Banks are required to keep constant watch of the
unit vis-a vis the loan account after sanctioning the loan in order to ensue that the amount
sanctioned to the unit is safe, generates income and does not turn out to be sick. This
process is termed as Credit Monitoring. There are three types of follow-up that constitute
Credit Monitoring. These are: (a) Financial follow-up, (b) Physical follow-up, and (c)
Legal follow-up.

CORPORATION BANK
The loan account, by itself, would indicate most explicitly the quality of loan.
Frequent delays and defaults in repayment that may be reflected in the loan account give
the warning signal to the bank. There is a need to identify these signals emanating from a
loan repayments, it could result in defaults thereby leading to a further degeneration in the
quality of the loan and create ‘problem loans’.
PART– A Principles of Sound Lending

Traditionally, banks have been following three cardinal principles of lending, viz.,
safety, liquidity and profitability. Banks in India have shouldered additional responsibility
of fulfilling social obligations. Hence, the banks observe both the traditional and certain
other principles.
1. Safety
Safety first as advocated by tannon should be the guiding principle. A bank lends
what it receives from the public as deposits. The success of the bank depends upon the
confidence of the depositing public. Confidence could be infused in the depositors by
investing the money in safe and sound securities. Safety depends upon (a) the security
offered by the borrower, and (b) the repaying capacity and willingness of the debtor to
repay the loan with interest. So the banker should ensure that the security offered is
adequate and readily realizable and the borrower is a person of integrity, good character
and reputation.
2. Liquidity
Liquidity refers to the ability of an asset to convert into cash without loss within
short time. The liabilities of a bank are repayable on demand or a short notice. To meet
the demand of the depositors in time, the banks should keep its funds in liquid state.
Money locked up in long-term loans such as land, building, plant, machinery etc.cannot
be received back in time and so less liquid. Short-term loans and loans granted against
securities such as goods can be converted into cash easily and so liquid. So a bank should
confine its lending to short-term against marketable securities.
3. Profitability
Like all other commercial institutions banks are run for profit. Even government
owned banks are no exception to this. Banks earn profit to pay interest to depositors,

CORPORATION BANK
declare dividend to shareholders, meet establishment charges and other expenses, provide
for reserve and for bad and doubtful debts, depreciation, maintenance and improvements
of property owned by the bank and sufficient resource to meet contingent loss. So profit is
an essential consideration. A banker should employ his funds in such a way that they will
bring him adequate return. The main source of profit comes from the difference between
the interest received on loans and those paid on deposit. Anyway a banker should never
give undue importance to profitability.
4. Security
Customers may offer different kinds of securities, viz., land, building, machinery,
goods and raw material to get advances. The securities of the customers are insurance and
banker can fall back upon them in times of necessity. For the sake of safety he should
ensure that the securities are adequate, marketable and free from encumbrances.
Securities which could be marketed easily, quickly and without loss should be preferred.
5. Purpose of the Loan

Before sanctioning loans a banker should enquire about the purpose for which it is
needed. Loans for undesirable activities such as speculation and hoarding should be
discouraged. Borrowings for productive purposes are readily allowed by banks. It is also
equally important on the part of banks to ensure that a loan is utilized for the purpose for
which it is granted so that repayment will be prompt.
In many countries the central Bank gives directions as to the purpose for which
loan may be made. Section 21 of Banking Regulation Act 1949 confers on Reserve Bank
of India the power to control advance by banks.
‘Purpose of the loan’ has assumed a special significance in the present day
concept of banking. Before sanctioning a loan a banker should enquire about the purpose
for which it is needed. A loan granted for productive purpose increases the earning
capacity of the borrower and ensures prompt repayment. Loans for undesirable activities
such as speculation, hoarding etc., should be discouraged. It is equally important to
ensure that the loan is utilized for the purpose for which it is granted.

CORPORATION BANK
6. Sources of Repayment
Before financial accommodation, a banker should consider the source from which
repayment is promised. In some instances, debentures which are to be redeemed in few
months’ time or a life policy which is to mature in near future may be offered as security.
Advances against such security give no trouble.
Sometimes customers may apply for loans for additional working capital for their
business and undertaken to repay out of the profits over a period. In such cases the rate at
which the customer can reasonably hope to repay should be ascertained. An examination
of the audited accounts may guide the banker in knowing the repayment capacity of the
customer.
7. Diversification of Risks
The security consciousness of a banker and the integrity of the borrower are not
adequate factors to keep the banker on safe side. What is more important is the
diversification of risk. This means he should not lend a major portion of his loanable
funds to any single borrower or to an industry or to one particular region. An adverse
change in the economy of these may affect the entire business. In such a case repayment
will be highly and the survival of the bank becomes questionable.
Therefore a bank should follow wise policy of ‘do not lay all the eggs in the same
basket’. The bank must advance moderate sums to a large number of customers spread
over a wide area and belonging to different industries.
8. Recent Concept of Sound Lending

Productivity of the loan: In the wake of nationalization of the 14 banks, banking
has undergone a metamorphosis. Today a bank is not exclusively a financial institution
but is alive to the needs of the people. It has a strong social objective and social
conscience.
Banks are catalytic agents in catering to the better needs of development in

conformity with the national objectives. If rapid progress is to be realized; bank credit

CORPORATION BANK
should made available to the neglected sectors of economic activity and to the under-
privileged sections of the society. To make this a reality, banks have to shed their outlook
of security- consciousness. The traditional belief of security being the measurement of
credit needs is a myth.
A sound lending is one where timely repayment is assured. This largely depends
on the earning power of the business unit and the repaying capacity of the borrower. So
great emphasis is laid on the productivity of the loan. Since the banks have shouldered an
additional responsibility of keeping the tempo of development of the economy they
should consider the productivity of loan as the chief criterion for advancing loans.
SECURED AND UNSECURED ADVANCES

Loans and advances may be made either on the personal security of the borrower
or on the security of some tangible assets. The former is called unsecured or clean or
personal advances and the latter is called secured advances.
Unsecured Advances
Section 5(i) (n) of the Banking Regulation Act defines unsecured loan as
“unsecured loan or advance means a loan or advance not so secured’.
The distinguishing feature of this type of loan, according to the definition is that
no tangible security is offered to the bank.
Clean advances are granted to customers of integrity with a sound financial

blacking, high business reputation and capacity to manage the business. In such a case the
general capacity of the customer is security in itself. In case of his default to repay the
Banker’s position is unsafe and can rank equal with other unsecured creditors to realize
the assets of borrower. So to safeguard his position a banker lends on personal security
coupled with the guarantee of one or more persons.
Confidence in the borrower is the basis of unsecured advances. A banker pins his
faith on the ability and willingness of the borrower. It is a sine qua non of good lending
that the banker should know his customer well and be able to form a judgment about his

CORPORATION BANK
integrity which should be undoubted. The confidence is judged by three considerations,

character, capacity and capital usually referred to as the three ‘C’s.
1. Character
Character constitutes the best asset of a man. The word character implies personal
qualities like honesty, responsibility, promptness, reputation and goodwill. A person who
possesses most of the above qualities is considered as a man of character and a bank can
extent credit to him without any reservation. With such men of integrity repayment of
loan will be certain and timely. So character is of paramount importance for unsecured
loans.
2. Capacity
The capacity a borrower refers to his ability to manage the business. Success of
the enterprise depends mainly on the initiative, interest, experience and managerial ability
of the entrepreneur. So capacity is the next consideration in granting clean advances.
Nationalisation of banks has widened the meaning of ‘capacity of the borrower’.
In judging the capacity, greater reliance is made on the economic viability of the project
for which loan is sough. Economic, viability means the capacity to manufacture goods at
the lowest cost and to leave sufficient profit to meet its commitment of loan. It is also
expected that the enterprise should contribute to higher production and serve social
objective. Thus the capacity of a borrower is assessed by his technical competence,
experience in that line of business, operational efficiency of the project, its earning power
and also the productive purpose of the loan.
3. Capital
In addition to the character and capacity of a borrower, a banker looks into
another aspect, i.e., capital. A bank provides mainly the working capital requirement of
the business. A borrower should have sufficient capital to conduct his business and
adequate plant and machinery to carry out normal production.
Secured Advances
Secured advances mean loans made on the security to tangible assets like land,
building, machinery, goods and documents of title to goods. Such loans provide absolute
safety to a banker by creating charge on the assets in favour of him.

CORPORATION BANK
Section 5 (i) (n) of the Banking Regulation Act, 1949, defines secured advances as
“secured loan or advance means a loan or advance made on the security of assets the
market value of which is not at any time less than the amount of loan or advance”.
The definitions explain the two essential features of secured advances:

(i) The advance must be made against tangible security
(ii) The market of security offered varies from place. In big cities likes Mumbai,
Kolkata and Chennai, government bonds and stock exchange securities are
offered. In large industrial areas raw materials and finished goods are given as
cover for the loan. Agricultural produce is the principle security offered in
agricultural centres.In addition to the above, a banker may also lend against
movable properties, book debts, life policy etc.
Security may be classified as primary security and collateral security.

1. Primary Security
The security deposited by the borrower himself as cover for the loan is called the
primary security. In the banking parlour, it refers to the asset which has been bought with
the help of bank finance. For instance, machinery has been bought with the help of bank
finance. That machinery constitutes the primary security to the banker. All other
securities deposited to cover advance are called collateral securities.
2. Collateral Security
The tern collateral security is used in two senses. In a narrow sense it refers to the
securities deposited by the third party to secure advance for the borrower. In a wider
sense it denotes any type of security on which the creditor has a personal right of action
on the debtor in respect of the advance.
FORMS OF ADVANCES
Banks offer different kinds of borrowing facilities to their customers. The credit
facilities may be broadly classified into four types:
1. Loan
2. Cash Credit
3. Overdraft
4. Bills Purchased and Discounted.

CORPORATION BANK
1. Loans
Incase of loan, the banker advances a lump sum for a certain period at an agreed
rate of interest. The entire amount is paid on an occasion either in cash or by credit in this
current account which he can draw any time. The interest is charged for the full amount
sanctioned whether he withdraws the money from his account or not. The loan may be
repaid in installments or at the expiry of a certain period. The loan may be made with or
without security. A loan once repaid in full or in part cannot be withdrawn again by the
customer. In case a borrower wants further loan, he has to arrange for a fresh loan.
Loan may be demand loan or a term loan. Demand loan is payable on demand. It
is for a short period and usually granted to meet working capital needs of the borrower.
Term loans may be medium-term or long-term loan. Medium-term loans are granted for a
period ranging from one year to five years for the purchase of vehicles, tractors, tools and
equipments. Long-term loans are granted for capital expenditure such as purchase of land,
construction of factory building, purchase of new machinery and modification of plant.
2. Cash Credit
Cash is an arrangement by which the customer is allowed to borrow money up to
a certain limit. This is a permanent arrangement and the customer need not draw the
sanctioned amount at once, but draw the amount as and when required. He can put back
any surplus amount which he may find with him. Thus cash credit is an active and
running account to which deposits and withdrawals may be affected frequently. Interest is
charged only for the amount withdrawn and not for the whole amount charged. Cash
Credit arrangements are usually made against pledge or hypothecation of goods.
Sometimes, this facility is also provided against personal security.
If the customer does not use the cash credit limit to the full extent, a commitment
charge is made by the bank. This charge is imposed on the unutilized portion of cash
credit only.
Cash credit provides an elastic form of borrowing since the limit fluctuates
according to the needs of the business. Cash credits are the most favorite mode of
borrowing by large commercial and industrial concerns in India.

CORPORATION BANK
3. Overdraft
Overdraft is an arrangement between a banker and his customer by which the
latter is allowed to withdraw over and above his credit balance in the current account up
to an agreed limit. This is only a temporary accommodation usually granted against
securities. The borrower is permitted to draw and repay any number of times, provided
the total amount overdrawn does not exceed the agreed limit. The interest is charged only
for the amount drawn and not for the whole amount sanctioned.
A cash credit differs from an overdraft in one respect. A cash credit is used for
long-term by businessmen in doing regular business whereas overdraft is made
occasionally and for short duration.
Temporary Overdraft
Banks, sometimes, grant unsecured overdraft for small amounts to customers
having current account with them. Such customers may be government employees with
fixed income or traders. Temporary overdrafts are permitted only where reliable source of
funds are available to a borrower for repayment.
4. Bill Discounted and Purchased

Banks grant advances to their customers by discounting bill of exchange or Pro-
note. The amount, after deducting the interest from the amount of the instrument, is
created in the account of the customer. In this form of lending, the interest is received by
the banker in advance. Discounting of bill constitutes a clean advance and banks rely on
the credit worthiness of the parties to the bill.
Banks, sometimes, purchase the bill instead of discounting them. Bill which are
accompanied by documents of title to goods such as bills of lading or railway receipt are
purchased by the bankers. In such cases, the banker grants loan in the form of overdraft or
cash credit against the security of the bills. The term ‘bills purchased’ seems to imply that
the bank becomes the purchaser/owner of such bills. But in almost all cases the bank
holds the bill only as a security for the advance.

CORPORATION BANK
Part-B Loan Schemes

INTRODUCTION
Corp Bank offers a variety of loans to choose from. The various retail loans are
given as ‘Corp Schemes’ highlighting the traditional Crop Bank commitment on giving
the best in terms of service, speedy disposal and of course at very competitive interest
rates.
FAIR PRACTICES
Following is the Code of Fair Practices of the Bank:
1. Processing of Loan applications:

(a) The Bank shall provide comprehensive information including information about fees
and charges and amount of such fees refundable in case of non-acceptance of application
as per the details, more fully described in schedule1, to all categories of loans irrespective
of amount of the loan sought by the borrower.
(b) The Bank shall provide details of prepayment options, if any/applicable, and any other
matters which affect the interest of the borrower as per schedule2.
I The Bank would ordinarily provide to the borrowers a due acknowledgment for receipt
of loan application/s. The above said acknowledgment shall mention the time-frame
within which loan application/s up to Rs.2 lakhs will be disposed of by the Bank.
(d) The Bank shall verify the loan applications within a reasonable period of time as per
the time-frame mentioned in schedule 3 and shall intimate the borrower immediately
thereafter for the additional details/ documents, if any, required for processing the
proposal.
(e) Wherever possible the Bank shall convey in writing the main reason(s) which, in the
opinion of the Bank, after due consideration, has/have led rejection of the loan application
within a stipulated time, as mentioned in schedule 3.
2. Loan Appraisal
(a) The Bank shall ensure that there is a proper assessment of credit applications made by
the borrower.
(b) The Bank shall convey to the borrower the credit limit/credit facilities sanctioned
along with the terms and conditions thereof.

CORPORATION BANK
(c) On a demand being made, the Bank shall provide a copy of the loan agreement to the
borrower.
3. Disbursement of Loan and changes in terms and conditions:

(a) The Bank shall ensure timely disbursement of loans sanctioned in conformity with the
terms and conditions governing such sanction.
(b) The Bank shall give notice of any change in terms and conditions including interest
rates, service charges, etc. to the borrower and ensure that changes in interest rates and
charges are made prospectively. Whenever the changes made are not borrower specific
and apply to any/all categories of borrowers, notice of change shall construed to be made
if the communication of the same is made in any of the following media;
• Display in the notice Board of the Bank in the branch where the borrowers
account is maintained, or
• News paper publicity, or
• In the Banks web site, or
• Over telephone in the cases where tele banking facility is extended, or
• Direct communication by courier/post.
4. Post-Disbursement Supervision:
(a) Post- Disbursement Supervision by the Bank, particularly in respect of loans up to
Rs.2 lakhs, shall be constructive with a view to taking care of any ‘lenders related’
genuine difficulty that the borrower may face.
(b) Before taking a decision to recall/accelerate payment or performance under the
agreement or seeking additional securities, the Bank shall give notice to the borrower, as
specified in loan agreement, within a reasonable period even if no such condition exists in
the loan agreement.
I The Bank shall release all securities on receiving payment of loan or in realization of
loan subject to any legitimate right or lien for any other claim the Bank may have against
the borrower. If such right of set off is to be exercised, the borrower shall be given notice
about the same with full particulars about the remaining claims and the documents under
which the Bank is entitled to retain the securities till the relevant claim is settled/paid.

CORPORATION BANK
5. General:
(a) The Bank shall refrain from interference in the affairs of the borrowers expect for
what is provided in the terms and conditions of the loan sanction documents (unless new
information, not earlier disclosed by the borrower, has come to the notice of thee Bank).
(b) The Bank shall not discriminate on grounds of sex, caste and religion in the matter of
lending. However, this does not preclude the Bank from participating in credit linked
schemes framed for weaker sections of the society.
I In the matter of recovery of loans, the Bank shall not resort to undue harassment that is,
persistently bothering the borrowers at odd hours, use of muscle power for recovery of
loans, etc.
(d) In case of receipt of request for transfer of borrowal account, either from the borrower
or from a Bank/financial institution which proposes to takes over the account, the consent
or otherwise, i.e., objection of the bank, if any shall be conveyed within 21 days from the
date of receipt of such request.
Corp Bank offers Housing Loans, Education Loans, Consumer Loans for purchase of
consumer durables like TV, washing machines, music systems and other electronic goods,
loans against future rent receivables on leased out building /premises, loans to purchase
two-wheelers & four wheelers, loans against shares, loans for purchase of medical and
other such sophisticated equipments, loan to acquire office premises/building & furniture,
personal loans, loans to women to buy pure gold/
jewellery, loan against mortgage of property etc.
The loan products are as below.
1. Corp Site Purchase Loan
To finance the application money (initial deposit) payable to local development
authority for allotment of residual site/plot. Eligible applicants are Salaried Individuals
confirmed in service. Non salaried class engaged in business, professional and self
employed persons who are It assesses and having minimum of 2 year’s satisfactory
dealings with the bank. Maximum loan amount is Rs 1 lakh or initial deposit payable
whichever is less, but should not exceed 12 times of monthly take home pay in case of
salaried persons.
Rate of Interest
13.75% p.a. (with effect from .02.08.2012)
Repayment Within 12 months

CORPORATION BANK
2. Corp IPO Scheme

To provide finance to general public to subscribe to IPO/Public
Issues/Rights/ESOP of reputed Corporate / Corporate approved by the Bank from time to
time. Individuals (such as salaried persons, professionals, businessmen, pensioners etc.)
either individually in their own names or jointly with others, with sufficient income to
service the loan.
Quantum of loan
Minimum Rs.0.20 lakh and Maximum Rs.10.00 lakh.
Rate of Interest:
12.75% under floating rate (w.e.f. 02.08.2012)
Repayment
Loan is repayable in 36 months.
3. Corp Byte – Computer Loan

Eligibility
Students (Indian Nationals) of colleges / University / Educational institutions pursuing
their courses in India
Loan is for pursuing professional courses only.
Purpose
To finance purchase of personal Computers/
Laptops/Notebooks/Palmtops/ PDAs / Tablet PCs etc., including other peripheral
accessories like pointers/ printers/scanners/ digital stylus/ external AC converters /UPS
etc., essential for professional studies.
Rate of Interest
Floating rate of 13.00% p.a. with effect from 02.08.2012 (fixed rate option not available)
Repayment
The loan to be repaid on monthly basis, beginning from the month subsequent to the
month of loan release and scheduled in a manner that would coincide with the student’s
residual period of study at the Educational Institution / College / University, so that the
loan account stands closed when the student completes his/her studies at the Educational
Institution/ College/ University.

CORPORATION BANK
4. Corp Home – Housing Loan

Through this scheme, one could build/acquire/extend/repair a house/flat of their
own. Loans up to Rs. 500 lakh available depending upon the purpose, at rates as given
below. Any individual, satisfying normal borrower standards and with sufficient repaying
capacity is eligible. One can repay net within 25 years, in convenient installments that
will not exceed 50% of their salary/income.
Purpose
For construction of house/flat, purchase of ready built house/flat
For repairs/extension of existing house/flat. For take-over of housing loans from other
bank/institutions.
Eligibility:-
Residents/NRIs holding Indian passports aged 18-60 years with adequate to repay the
loan.
Table: 3.1 Loan Amount

Area Loan Amount Loan for Site
Metro & Port Town Centers Rs.500 Lakh Rs.30 Lakh
Urban Centers Rs50 Lakh Rs.15 Lakh
Semi Urban & Rural Centers Rs.25 Lakh Rs.10 Lakh
For Repair/Renovation/ Extension/Improvement Rs.5 Lakh -
Table 3.2
Fixed Rate
Loan Tenor Up to Rs.30 Lakh Above Rs.30 Lakh & Up Above Rs.50
to Rs.50 Lakh Lakh
Up to 5 years 11.00% 11.50% 11.50%
Above 5 & Up to 15 11.00% 11.50% 11.50%
years
Above 15 years & 11.00% 11.50% 11.50%
Up to 20 years
Above 20 & Up to 11.00% 11.50% 11.50%
25 years
Maximum tenor under fixed rate loans restricted to 20 years salaried class and 15 years
for other category of borrowers.
Housing loans under fixed rate of interest is offered up to 20 years only. The rate of
interest will be reset at the discretion of the Bank once in 5 years.

CORPORATION BANK
Table: 3.3 Floating Rate

Loan Tenor Up to Rs.30 Lakh Above Rs.30 Lakh Above Rs.50 Lakh
& Up to Rs.50 Lakh
Up to 5 years 10.80% 11.65% 12.15%
Above 5 & Up to 15 10.90% 11.65% 12.25%

years
Above 15 years & 11.00% 11.65% 12.25%
Up to 20 Years
Above 20 & Up to 10.25% 10.75% 12.35%
25 years
5. Corp Rental
The Scheme envisages financing the owner of the commercial properties against
future rent receivables for the unexpired period of lease specified in the lease agreement.
Eligibility
Eligible applicants for financing under the Scheme would be individuals/
Partnership Firms / Corporate/ Trusts/ HUFs, owning commercial buildings let out to
reputed organizations, where the unexpired period of lease is generally more than three
years.
The Loan may be availed for any productive purpose such as taking up new
projects, business to towards contingencies or to meet domestic / personal / any other
commitments.
Rate of Interest: 13.75% with effect from 02.08.2012
Repayment
Loan shall be repaid in Equated Monthly Installments within the unexpired period
pf lease or 120 months (maximum) whichever is less.
6. Corp Vidya – Educational Loan

For higher education in India /aboard. Applicant should be an Indian National and
secured admission to professional/ technical courses through Entrance test/ Merit based
selection process in India or aboard.
Eligibility of the Student

CORPORATION BANK
Student should be an Indian national

Should have completed previous qualifying examination
Secured admission to professional/ Technical cources in India or aboard through
Entrance test/ Merit based selection process/management quota
Person already in gainful employment not eligible for loan under the scheme expected for
pursuing evening course covered under the scheme of approved Institute.
If a gainfully employed person wants to pursue full time education either on study leave
or by resigning from present employment, such proposals may be considered provided the
applicant submits the proof in the regard to the sanctioning authority before disbursement
of loan.
Rate of Interest
Applicable for fresh loans sanctioned / initially disbursement on or after 14.08.2012
Table: 3.4
Up to 4.00 lakh 12.25%
Above Rs. 4.00 lakh & upto Rs 7.50 lakh 13.25%
Above Rs. 7.50lakh 12.75%
Repayment
The loan to be repaid within a period of 7 – 10 years after completion of repayment
holiday
Repayment holiday is course period + 1 year or 6 months after getting the job whichever
is earlier.
7. Corp Cash Demat – Share Loan
Eligibility:-
Individuals who have been properly introduced to the Bank
If the shares are in joint names, the loan account should be in joint names.
Purpose
To provide liquidity to investors against shares
To meet contingencies and personal needs or for subscribing to the Rights /New Issues of
shares / Debentures/ Bonds or for purchases in the secondary market.
Loan Amount:- Minimum Rs. 50000/- ; Maximum Rs. 20.00 lakh
Rate of Interest

CORPORATION BANK
Floating rate of interest 14.50% p.a. w.e.f. 02.08.2012. Fixed interest rate option not
available
Repayment
Repayable in maximum of 24 months, subject to annual review.
8. Corp Mortgage – Loan against property

To meet personal / domestic expenses & business requirement.
Individuals in the age group of 18-65 years owing residual/ commercial property land and
/or building) and who are Income Tax Assesses. In addition to Individuals, Proprietorship
concerns, Partnership Firms & Companies may be considered for financing under the
scheme, provided they are IT assesses.
NRIs also may be financed under the scheme. Salaried persons with minimum net
monthly income of Rs.20000/-* & others with minimum net annual income of Rs.
250000/- are eligible for loan under the scheme. The income of close relative may be
added, if he/she must join as co- applicant.
Loan Amount
The maximum loan amount not to exceed 5 times of the Net annual Income.
Minimum Rs. 2 lakh & maximum Rs. 50 lakh
Rural: Rs. 5 lakh
Semi Urban: Rs.10 lakh
Urban: Rs. 25 lakh
Metro & port Town: Rs.50 lakh
Rate of Interest
14.50% under floating rate (w.e.f. 02.08.2012) Fixed rate option is not available under the
scheme.
Repayment
Where the loan is in the form of Term loan, the same is repayable within maximum
repayment period of 7 to 10 years.
9. Corp Doctor Plus – Equipment finance for Medical Professionals

To finance brand new Electro Medical & other sophisticated equipments including OT
equipments, Air conditioners, ambulance, Generators, Personal Computers and
accessories with related software and UPS etc. In the case of setting up of clinics,

CORPORATION BANK
purchase of furniture & fixtures, furnishing, Air conditioning, Electrification may also be
financed.
Any Registered Medical Practitioner in the age group of 25 to 60 years with a minimum
experience of one year is eligible.
Loan Amount: Upto Rs. 2.50 crores
Rate of Interest
12.50% p.a.with effect from 02.08.2012. Fixed rate of option is not available under this
scheme.
Repayment
Where loan is for construction/purchase of hospital/clinic, repayment period is upto a
maximum of 10 years including initial repayment holiday, if any.
10. Corp Personal

To meet any genuine personal expenses relating to family functions, education, travel,
marriage, medical etc. permanent employees of Central / State Government Offices,
Profit making Public Sector Undertakings and Public Limited Companies, Schools,
Colleges, Universities and Research Institutions, Pensioners drawing pension through our
Bank and individuals with income other than salary/ pension are eligible. Maximum Loan
amount Rs.2 lakh
Rate of Interest
14.00% p.a. w.e.f.04.05.2012
Repayment
For salaried class Loan repayable in 36 months
For than salaried class loan repayable in 60 months.
Crop Professional- for acquiring Office premises by professionals
To finance acquisition of office premises for self occupation and Furniture and Fixtures
required for the office premises purchased under the Scheme.
Eligibility
Registered Medical Practitioners, practicing Advocates, Chartered Accountants,
Company Secretaries, consulting Engineers and Architects, etc., individually/jointly or as
a partnership firm, having an established practice with a minimum experience of three

CORPORATION BANK
years, in the age group of 25 to 65 years. The applicant should be an Income Tax
Assessee with a minimum annual gross income of Rs.1.50 lakh.
Quantum of Loan
Upto Rs. 50 lakhs in Metro, Rs.25 lakhs in Urban/Port-town, Rs.10 lakhs in Semi-urban
and Rs.5 lakhs in rural places. The maximum loan amount determined based on financial
viability and income/repayment capacity of the professional.
Rate of Interest
12.50% p.a. w.e.f. 02.08.2012
Repayment
The loan repayable in maximum period 10 years
11. Corp Vyapar

To meet short term working capital facilities. Traders engaged mainly in buying and
selling of goods/commodities either on retail or wholesales basis. Individual/sole
proprietors/Partnership firm/HUF/joint Stock Company or any other entity engaged in
trading /business activity for a period of one year prior to seeking sanction loan.
Quantum of Loan
Minimum loan 50000 & Maximum Rs. 50 lakh.
Rural: Rs. 10 lakh
Semi Urban: Rs.25 lakh
Urban: Rs.50 lakh
Merto & Port Town: Rs. 50lakh
Rate of Interest
12.50% p.a. Under Floating rate (w.e.f.02.08.2012)
Repayment
Loan repayable in maximum 60 months
12. Corp Mitra

To meet personal/domestic expenses/contingencies. All the confirmed Employees/
Executives/ Officials of the LIC of India, LIC Housing Finance Ltd., LIC Mutual Funds
and other insurance companies under public sector and their subsidiaries whose salary is
routed through our Bank.

CORPORATION BANK
Rate of Interest
14.25% under floating rate (w.e.f.02.08.2012)
Repayment
Maximum 60 months.
13. Corp consumer
To finance purchase of consumer durables such as Refrigerator, Cooking range, Food
processor, Grinder, Television, Electronic Audio System, Washing Machine, Acs,
Microwave Oven, Lap Top / PCs including accessories, Mobile Phone, Multi Media Kits,
UPS, Digital Camera, Generators, Hand Video Camera and furniture, YO-Bike, Electric
Bike, Solar heating Solar electricity systems. Loan Amount : Maximum Rs. 1 lakh.
Rate of Interest
13.00% p.a. (w.e.f. 03.02.2012)
Repayment
Maximum of 36 months.
14. Corp Vehicle Loan

Individuals (professionals/ Businessmen/ Salaried class and others) sole proprietors,
Partnership Firms HUFs, Companies Trusts/ Institutions are eligible.
Purpose
For purchase of two/three/four wheelers /heavy road /water transport vehicles/ for
personal/ transport/ business/commercial purpose.
Loan Amount
For 2 wheelers: Rs. 1 lakh per vehicle
For 3 wheelers: Rs. 2.00 lakh per vehicle
For 4 wheelers and heavy vehicles / water transport vehicles: maximum Rs.75 lakh per
vehicle.
Rate of Interest
Tenor upto 3 years 10.50% (w.e.f.04.05.2012)
Tenor above 3 years & upto 5 years 11.00%
Tenor above 5 years & upto 7 years 11.25%
Repayment
Maximum 60 months for purchased 2/3 wheelers.
Maximum 84 months for other than 2/3 wheelers.

CORPORATION BANK
Chapter 4- Research Design
Scope of the study

Limitations of the study
Tools and Techniques of Data Collection
Views of Customers

CORPORATION BANK

CORPORATION BANK
RESEARCH DESIGN
Banks deal with the funds of a large number of depositors and banks are requires
to return the money to the depositors with the promised amount of interest. Further, banks
are also required to monitor the loans and also ensure that the loans do not turn bad.
Consequently, they have to follow the principles of credit management to avoid the
danger of failing.
These fundamental principles are like a rudder to a ship, which have been guiding
the function of lending ever since banking has evolved as a profession. The fundamental
principles that are followed by a bank in managing the credit portfolio are safety, security,
liquidity and profitability. These principles have undergone changes with changing times
and developments in the banking industry.
Lending is a crucial activity for a bank as it enables the bank generates income.
But to sustain income generation, prudent decisions need to be taken both prior to and
after sanctioning the credit. These decisions generally relate to the size, security and
repayment of credit to be extended during a financial year, the industries to focus on, the
geographical spread, the type of credit to offer, the type of proposals to finance, the
disbursal mechanism, the collateral value, the method of pricing, the repayment schedule,
the monitoring process, etc. The macro and micro level policies of the lending activity
contribute to the achievement of the bank’s financial objectives. The bank’s management
should thus, ensure that lending decisions fall in line to sub-serve the bank’s overall
objectives of growth and stability. The present study is focusing the Lending and
Recovery Management of Corporation Bank
OBJECTIVES OF THE STUDY

To highlight the Origin of Bank and Functions of Banker.
 To give the profile of Corporation Bank
 To give the Vision and Mission Statement of the bank and Organisation Structure
 To know the progress of the Bank
 To give the Profile of Sagar Taluk and Branch of corporation bank in brief
 To analysis the performance of Sagar branch in terms of Lending and Recovery

CORPORATION BANK
 To offer suggestion for better performance of the Bank

 Role of Lending and Recovery management in Corporation Bank
 To analyze the lending policy of the corporation bank limited
SCOPE OF THE STUDY

 The study was done so as to know more about the Corporation Bank and its
functioning.
 It was done in order to know about the performance of the bank over the years
 To make the readers of this project report aware of the features and benefits of
lending and recovery offered by Corporation Bank
 The main scope of this study was to understand the Lending and Recovery
Management
LIMITATIONS OF THE STUDY

 The study is conducted in Sagar only
 Obtaining information from the office staff during the working hours was in
convenient.
 The analysis is made by using simple statistical tools
 The study holds good only for the time period when the project was undertaken.
 This study is subject to time constraint.
 Some of the confidential information relating to the Lending and Recovery
Management they have not revealed.
 Some of the confidencial information can not be given by them.
TOOLS AND TECHNIQUES OF DATA COLLECTION

There are two ways through which the data has been collected.
• Primary data
• Secondary data
PRIMARY DATA
Primary data collected is the data collected through

CORPORATION BANK
• Personal interview
• Report of the company
SECONDARY DATA
Secondary data is that data which is obtained through
• Company’s catalogue.
• Brochures
• Magazines
• Bank websites.
1. Approach to Bank
The analysis on how the customers approached the bank for their requirements has
indicated that 16 customers have approached the bank on their own and 4 through help of
other.
2. Clearness of loan application

Time taken for sanction of loans to customers will have greater impact on their attitude
towards the bank of the 20 surveyed, 4 viewed that time log for sanctioning the loan to
lindy, 5 moderate lindy and 11 as normal.
3. Repayment period
About the repayment period 13 customers viewed that the period is sufficient and balance
as in sufficient. Women customers opined that more time should be given to them.
4. Security
Out of the 20 customers 18 have opined that security obtained by the bank fair and 2 felt
that it is unfair. Those who opined unfair are of the opinion that the bank demand huge
value of security but failed to met our hole of the financial requirement. This will affect
the borrowings from other banks, as they will not give loan against the already secured
properties.
5. Rate of Interest
Out of 20 customers 15 have opined that the rate of interest is normal 2 as moderates high
and 3 viewed as high.
6. Promoters Contribution

CORPORATION BANK
No banker is providing 100% loan to the purpose for which it is required. Asked about
the promoter contribution in case of 10 customers 6 opined treat minimum promoters
contribution is normal, and 2 each opined as moderately high and too high.
7. Legal Formalities
About the legal formalities observed, 14 opined that the legal formalities follows by bank
is simple and rest opined as rigid and complicated.
8. Effect is commencement of activity

On these issue 16 customers has given the opinion among them 12 opined that the loan
was given in time and rest opined that the period taken to sanction the loan is too lengthy.
9. Recovery Procedure
Of the 20 customers 12 have viewed it has not strict and 8 has not strict.
10. Service Rating

The image and reputation of the bank is much influenced by the consolidated opinion of
the customers on various issues listed above. Based on the experience with the bank, the
customers surveyed asked to assign the rates on the services of the bank. Four options
were given to customers viz; ‘VERY GOOD’ ‘GOOD’, ‘AVERAGE’, and ‘BAD’. Of the
20 customers surveyed 2 have opined that the service of corporation bank is ‘VERY
GOOD’, 12 customers as ‘GOOD’ and the remaining customers as ‘AVERAGE’. No
customer opined that the service of Corporation Bank is average.

CORPORATION BANK
Chapter 5-Analysis and Interpretation of the

Data

CORPORATION BANK
This chapter is based on the secondary date collected from the sagar branch of
Corporation Bank. The chapter throws light on the deposit mobilized by the bank,
account wise deposit, advances across the activity, NPA level over the years etc. The
primary data is collected as the lending and recovery related issues.
ANALYSIS OF DEPOSITS, ADVANCES AND RECOVERY
The analysis of the deposit and advance related an issue is made in the ensuring pages.
1. DEPOSITS
Accepting the money deposits is the primary function of any commercial bank. It
is the source of strength which facilitates the lending function of the bank. The data
relating to deposits during 2006-2007 to 2011-2012 accept. Presented in below table 5.1
Table 5.1
Deposits over the years (Rs. In cores)
Year Ended Deposits %to Total Growth Rate
2006-2007 16.25 11.25%
2007-2008 17.61 12.19% 108.37%
2008-2009 19.42 13.44% 110.28%
2009-2010 19.66 13.61% 101.24%
2010-2011 36.08 24.98% 183.52%
2011-2012 35.43 24.53% 98.20%
TOTAL 144.45 100.00%
It can be seen from table 5.1 that the bank was able to increase the deposits from
year to year. To be specific, the bank was able to mobilize 175.52 crores in 6 years in the
study. The deposit is witnessing a positive growth rate in 2006-2007 to 2011-2012.
Graphical Representation of Deposits

CORPORATION BANK
2. ACCOUNT WISE DEPOSITS

The banker is accepting is deposits under S B account, current account, time deposit
account. Table 5.2 shows the account wise deposits accepted in the year 2009-2010 and
2011-2012
Table 5.2
Accounts wise Deposits (Rs. In cores)
Type of Accounts 2009-2010 % 2011-2012 %
Savings Bank Accounts (SB) 12.22 33.87 12.18 34.38
Current Accounts (CA) 2.58 7.15 2.31 6.52
Time Deposits (TD) 21.28 58.98 20.94 59.1
TOTAL 36.08 100 35.43 100
It can be seen from table 5.2 that a big portion of the bank deposits came from
time deposit account or term deposit accounts. To be specific in the year 2009-2010 out
of 36.08 crores deposits, Rs 21.28 crores constituting 58.98% to total is from time
deposits. This percentage rose to 59.10% in 2011-2012.The share of S.B. account is
33.87% in2009-2010 and 34.38% in 2011-2012. The current account which is preferred
by traders occupied third position with just 2.58 crores and 2.31 crores deposits in 2009-
2010 and 2011-2012 respectively. Thus the bank is stronger liquidity wise. Because the
time deposits which are not often withdrawn by the customers.
Graphical Representation of Account Wise Deposits

CORPORATION BANK
3. ADVANCES
Advancing the money to the customers is another key function of the bank. The
Corporation Bank is advancing the money for wide range of activities is studying part-b
of the previous chapter. They include site purchase loan, vehicle loan, education loan, and
business purposes. The total advances made by the bank over the years is given is
presented in table 5.3
Table 5.3
Advances Over The Year (Rs. In cores)
Year Ended Advances % Total Growth Rate
2006-2007 5.78 9.13 -
2007-2008 7.57 11.95 130.97
2008-2009 8.35 13.18 110.29
2009-2010 9.1 14.37 109.02
2010-2011 19.48 30.76 214.05
2011-2012 13.06 20.61 67
TOTAL 63.34 100 -
Table 5.3 reveals that there is continues increasing bank advances from the year 2006-
2007 to 2011-2012.But declined in 2011-2012. In total Rs.63.04 crores is advanced by the
banks during the period under study. They respective shares the total advances is 9.13%
in 2006-2007, 11.95% in 2007-2008, 13.18% in 2008-2009, 14.37% in 2009-2010,
30.76% in 2010-2011 and 20.61% in 2011-2012. The growth rate in advances is high in
2010-20011. The ratio of deposits to advances during 1:0.438. That means out of every 1
rupees deposit 44 paise is lent are given to the customers.
Graphical Representation of Advances

CORPORATION BANK
4. ACTIVITY WISE ADVANCES

The bank is providing the money for various purposes are activities listed in chapter four.
Agriculture, small enterprises and retail trade are the key lending areas of the bank.Table
5.4 shows the activity wise advances made by the bank.
Table 5.4
Activity Wise Advances (Rs in Cores)
Activity 2009-2010 %to Total 2011-2012 %to Total
Agriculture 8.68 44.56 3.55 27.18
Small Enterprises 3.32 17.04 2.36 18.07
Retail Trade 6.31 32.39 6.11 46.78
Personal Loan 1.17 6.01 1.04 7.97
TOTAL 19.48 100 13.06 100
It can be seen from table 5.4 that the agriculture was the top priority of the bank in
2009-2010 and retail trade in 2011-2012. To be specific in 2009-2010 out of Rs 93.48
crores advances, Rs 8.68 crores was lend to agriculture (constituting 44.56% to total
advances) followed by retail trade to which 6.31 crores has advanced (constituting
32.39% to total).The share of small enterprises is 17.04% (loan amount is 3.32 crores)
and personal loan amounting to Rs 1.17 crores. The percentage share of retail trade which
ranked first in 2011-2012 is 46.78% (6.11 crores) agriculture is 27.18 crores (3.55 crores),
18.07% (amounting to Rs 2.36 crores. In these two years the ranking between agriculture
and retail trade are interchanged.
Graphical Representation of Activity wise Advances

CORPORATION BANK
5.SECTOR WISE ASSISTENCE

The Sagar branch bank is lending money for three important sectors such as priority
sector, agriculture and small scale industry. Table 5.5 shows the sector wise assistance
given by the bank.
Sector Wise Assistance
Agriculture Small Scale
Priority Sector
Sector Industry
Year Amount % Amount Amount Total
74.1
2006-2007 39300000 1 11900000 1824000 53024000
75.4
2007-2008 48400000 5 12400000 3350000 64150000
77.3
2008-2009 56600000 9 12500000 4037000 73137000
77.4
2009-2010 58400000 9 25000000 1966000 85366000
57.3
2010-2011 161600000 8 86800000 33200000 281600000
68.8
2011-2012 130600000 4 35500000 23600000 189700000
It can be seen from table 5.5 that the priority sector (agriculture and small scale industry
are the part of it) has received a loan to the tune of Rs 39300000 lakh out of total
advances in the year 2006-2007 which constitute 74.11% to total advances in that
year.The share of priority sector to total advances in 2007-2008 is 75.45%, in 2008-2009
it is 77.39%, in 2009-2010 77.49%, in 2010-2011 57.38% and 2011-12 it is 68.84%. Thus
priority sector advances is increasing from year to year but declined in 2010-2011.
Graphical Representation of Sector Wise Assistance

CORPORATION BANK

CORPORATION BANK
6.RECOVERY POSITION
Management os recovery is one of the impportanr cash mangement areas of the bank
since it affect the long run solvency and liquidity position of the bank. The data relating
to the position of the recovery 2008-2009 to 2011-2012 is available from the bank.Table
5.6 shows the details.
Table 5.6
Cash Recovery
Year 2008-2009 2009-2010 2010-2011 2011-2012
Amount 257000 2068000 2964000 1531000
Table 5.6 shows that the amount recovered is increasing from year to year in first three
years but reduced in 2011-2012.
Graphical Representation of Cash Recovery

CORPORATION BANK
7.MANAGEMENT OF NPA
The assest which is not performing it is called NPA’s. NPA’s are inavaitable burden of
the bankers.Table 5.7 shows the NPA leval of the bank over the year.
Table 5.7
NPA Level
Year Ended Amount %
2006-2007 6334000 -
2007-2008 6836000 107.93%
2008-2009 5302000 77.56%
2009-2010 4213000 79.46%
2010-2011 4500000 106.81%
2011-2012 10100000 224.44%
Table 5.7 reveals that the NPA level is witnessing a fluctuating variance over the years.
To be specific compare to the year 2006-2007 the level of NPA has increased in 2007-
2008 and decreased in 2008-2009 and 2009-2010 again increased in 2010-2011 and in
2011-2012 witnessed a sharp increase in NPA level of the bank. Some of the reasons
identified this increase is:
1. Crop failure
2. Reduction in the price of arcanut which is the major economic crop of the sagar taluk.
3. The frequent loan waiver policies of the government is causing for poor recovery. The
loan waiver on the one hand affected the recovery position and negatively influencing
the repayment. Now formers are of the opinion that those who differed the payment are
the intelligence and who has paid promptly is not intelligence.
Graphical Representation of NPA Level

CORPORATION BANK
Chapter 6- Summary of Findings,

Suggestions and Conclusion
Analysis of the Survey Findings

Problem Faced by Corporation Bank Sagar Branch
Suggestions
Conclusion

CORPORATION BANK
ANALYSIS OF SURVEY FINDINGS
1. The following table shows the distribution of respondents on

the basis of their age
AGE NO OF RESPONDENTS PERCENTAGE

18-25 30 60
25-50 10 20
50 and above 10 20
TOTAL 50 100
From the above table is clear that more number of consumer belonging to the
age group between 18-25. Thus is need to extend the credit facilities to the persons
belonging to age group of 18-25 and 50 and above.
The following graph shows the distribution of respondents on basis of their age

CORPORATION BANK
2.Following graph shows the distribution of respondents on the basis of their sex and
marital status
PERTICULAR NO OF RESPONDENT PERCENTAGE

Male married 25 50
Male unmarried 10 20
Female married 8 16
Female unmarried 7 14
Total 50 100
From the above table, it is clear that more number of respondents belonging to
male and married, thus there is need to extend credit facilities to the persons belonging to
the female category and male unmarried category.
The following Graph shows the distribution of respondents on the basis of their sex
and marital status:

CORPORATION BANK
3.The following table shows the occupation of the respondent
OCCUPATION NO OF RESPONDENT PERCENTAGE

Student 10 10
Professional 30 30
Business 40 40
House wife 20 20
TOTAL 100 100
From the above table it is clear that the more number of account holders are
business mans When compared to professionals and students, since they deal with day to
day transactions and more benefited.
The following graph shows the occupation of respondent received there in

CORPORATION BANK
4. The following table shows distribution of respondents on the basis of their

“INCOME PER MONTH”
INCOME NO OF RESPONDENT PERCENTAGE

1000-5000 20 20
5000-10000 60 60
10000-15000 10 10
15000 and above 10 10
TOTAL 100 100
From the above table it is clear that the majority of account holder are belonging to
5000 to 10000
The following graph shows distribution of respondents on basis of their “INCOME

PER MONTH”

CORPORATION BANK
5.The following table shows the distribution of respondent on the basis of their
education
QUALIFICATION NO OF RESPONDENT PERCENTAGE

SSLC 10 10
PUC 20 20
DEGREE 60 60
OTHER 10 10
TOTAL 100 100
Above analysis it is clear that majority of account holders are degree holders
compared to other groups and they have been operating account efficiently and
without any difficulty.
The following graph shows the distribution of respondent on the basis of their
education
6.The following table shows The Media Through Which respondents Come
To Know About SAGAR BRANCH(CORPORATION BANK)

CORPORATION BANK
AREA NO OF RESPONDENT PERCENTAGE

Friends 25 50
Advertisement 12 24
Relatives 8 16
Other 5 10
TOTAL 50 100
From the above table is clear that the most of the respondents comes to know about
sagar Branch through friends. The following graph shows the media through which
respondent come to know about SAGAR BRANCH (CORPRATION BANK)
50 50
45
40
35
30
25 25 24
20
16
15
12
10 10
8
5 5
0
Friends Advertisement Relatives Other
7.The following table shows purpose for which the respondents taken loans.
NO OF
PURPOSES RESPONDENTS PECENTAGE
Addition of new product 12 24

CORPORATION BANK
Expansion of business 28 56
Modernization 8 16
Installation of machinery 2 4
TOTAL 50 100
From the above table it is clear that majority of account holders have taken Loans
for expansion of their business rather than addition of new product, Modernisation
and installation of machinery.
The following graph shows purpose for which the respondents taken loan

CORPORATION BANK
8 The following table shows opinion of the respondents towards general

concern of the clients :
PARTICULARS NO OF RESPONDENTS PERCENTAGE

Courteous 25 50
Co-Operative 12 24
Indifferent 8 16
Rigid 5 10
TOTAL 50 100
Regarding general attitude of the clients towards the sagar branch survey revealed
that50% respondents expressed as courteous, where as 24% respondents expressed
as co-operative. 16% as indifferent
The following graph shows opinion of the respondent towards the general concerns
of the client.
25 25
20
15
12
10
8
5
5
0
Courteous Co-Operative Indifferent Rigid
9.The following table shows opinion of respondents towards compression of

CORPORATION BANK
the o the Corporation Bank Sagar Branch:
PARTICULARS NO OF RESPONDENTS PERCENTAGE

Excellent 30 60
Good 13 26
Cannot be compared 5 10
Bad 2 4
TOTAL 50 100
From the above table it is clear that out of fifty respondents 30 of them felt
services provided by the bank was excellent, 13of the felt good, out of 50, 5
respondents opinioned that it cannot be compared, 2 of them felt that the service
The following graph shows opinion of the respondents towards compression of the
Corporation bank sagar
Problem faced by Corporation Bank Sagar Branch:

The following are the problem faced by the Sagar Branch:

CORPORATION BANK
 This Branch face stiff competition from commercial and co-operative banks and other
private banks.
 Small gap between deposits and interests and advances, interest rates which results in
lower profits.
 Recovery of funds is showing a poor performance, borrowers are not returning loans
with in time.
 High interests rates with other banks results in heavy withdrawals of funds.
 Over dues and poor recovery.
Problem faced by customer of sagar Branch:

 Delay in getting facilities:
Some of the borrowers of the bank takes more times to loans felt tat the banks
takes more time to complete formalities which results in delay in project and there by
customer face losses.
 Loan instalment:
In survey many customers have told that the bank must increase the loan
instalment for the purpose of making recovery with low interest.
 Insufficient in repayment period:

The number of beneficiaries are dissatisfied with the repayment period of loan.
Beneficiaries told many reasons like proper incomes household requirement etc.. with
such problems they cannot pay dues promptly. Hence people finds difficulty to meet their
own loans with in a stipulated time.

CORPORATION BANK
SUMMARY OF FINDINGS, SUGGESTIONS & CONCLUSION

Corporation Bank is one of the major financial players’ in the country in general
and Karnataka State in particular as for as sagar town is concerned, it is the only bank
with 3 branches, and 2 ATM’s counters. The bank is providing wide range of services to
its customers and occupied a position of pride in sagar town. The present project report
aim at analyzing the financial role of the bank with respect to lending and recovery and
views of the customers on the services of the bank. Based on the banking literacy, annual
reports, the major findings and views of the study are presented in the ensuring pages.
SUMMARY OF FINDINGS
The summary of the major findings of the study are as below.
1. The Sagar branch of Corporation Bank was started in the year 1936.
2. The loan schemes of the bank are corp. Site purchase loan, corp IPO scheme, crop
byte computer loan, corp. home housing loan. corp Rental loan, corp vidya
education loan,corp cash demat- share loan, corp Mortgage loan against property,
corp docter plus equipment finance for medical professionals, corp personal loan,
corp vyapar, loan, corp mitra, Corp Consumer, Corp Vehicle loan.
3. The bank is advancing for agriculture, Small enterprises and retail trade.
4. Though recoveries improved NPA level is also increased
5. It is providing good financial assistance.
6. Sagar branch of corporation bank charge considerable rate of interest for corp
loans.
7. It pays a considerable rate of interest on deposits made by the customers.
8. Loan amount and Loan installment provided by the bank is satisfied to a
maximum number of customer.
9. customer opinion is that the compression of Corporation bank with the other bank
is excellence.
10. Customers are satisfied with the service provided by the sagar branch.

CORPORATION BANK
SUGGESTION
The following are the suggestion given on the basis of survey made:
1. Rate of Interest:
Interest charges by the bank is considerable. So it has to maintains its rate of
interest in future.
2. Loan installment:
From the survey it is quite clear that the bank has not providing the adequate loan
installment so it has to increase the adequate loan installment.
3. Recovery Charges:
Recovery charges should be reduced as low as possible because all are not in the
position to pay more amounts.
4.New Schemes:
The Bank should take necessary steps to promote the new schemes.
5. Lack Of Staff:
The bank should take necessary steps to reduce over burden on employees
because of Less number of employees. The may result in fatigue and frustration.
6. Political Influence:
The banker should never care for political influence. They should act promptly
according To the rules and regulation of the bank as well as government. Branch
manager should report the Management authorities about such political influence.
7. Innovative loan schemes shall be introduced to face the completion.
8. The bank can think in terms of installing ATM counter in APMC yard branch sagar.
9. The bank is weak in terms of agriculture loan. Therefore efforts to attract the formers in
sagar taluk should be made.
10. It is advisably to locate sagar branch at ground floor so as to give access to old age
and women customers.

CORPORATION BANK
CONCLUSION
The present study as evaluated the lending and recovery management of
Corporation Bank Sagar. The analysis is made by taking the views of the customers
about sagar branch and by analysing the advances and recovery. The study revealed that
the bank has performed well in term of lending the money and recovering the same. But
the increase in NPA level over the years at the national level is an alarming one. Based
on the views of the customers, some suggestions are offered by the study to facilitate the
first growth and development of the bank.

CORPORATION BANK
ANNEXURE
Questionnaire
Bibliography

CORPORATION BANK
QUESTIONNAIRE
Dear Sir/Madam
I am student final year BBM in Acharya Tulasi National College of Commerce,

Shimoga, for the partial fulfillment of requirement for award of BBM degree, I am
doing a project report on “Lending and Recovery management, A case study of
corporation bank. Sagar”.
So I request your co-operation in filling the questionnaire, please take few minutes
to fill the appropriate answer. The data collected will be used for academic purpose only.
Thanking You, Yours faithfully,
Navaneeta. G
1. Name :
2. Address :
3. Age:
18-25( ) 25-50 ( ) 50 and above ( )
4. Sex :
Male( ) Female( )
5. Marital State:
Married ( ) Unmarried ( )
6. Education:
SSLC ( ) PUC ( )
Degree ( ) others ( )
7. Occupation:
Student ( ) professional ( )
Employee ( ) Businessmen ( )
House wife ( )
8. Income :
1000 ( ) 10000-15000 ( )
5000-10000 ( ) 15000 and above ( )
9.Do you deal with banks :

Yes ( ) No ( )
10.Have you heard about the Corporation Bank, sagar branch:

Yes ( ) No ( )

CORPORATION BANK
11.If yes, from whom you have heard about the sagar branch:
Friends ( ) Advertisement ( )
Relatives ( ) Others( )
12.Do you have any account in corporation bank:

Yes ( ) No( )
13. Have you received any Loans advances in this branch :

Yes ( ) No ( )
14.If yes, for what purpose you have taken loans:

Addition of new product( )
Expansion of business( )
Modernization ( )
Installation of machinery ( )
15.Are you satisfied with the loan amount:

Yes ( ) No ( )
16.What is your opinion about the Legal Formalities adopted by the bank:
Simple ( )
Rigid and complicated ( )
17. What is your opinion about the Rate of interest on loans and advances
Reasonable ( ) Low ( )
Very high ( ) Satisfactory ( )
18.how much time will taken for sanctioning of loan?

Moderate ( ) Normal ( )
19.How is the General concern to clients:

Courteous ( ) Co-operative ( )
Rigid ( ) Indifferent ( )
20.Have you taken any financial assistance from other bank:

Yes ( ) No ( )
21.if yes, what is your compression of Corporation Bank with that Bank:
Excellence ( ) Good ( )
Cannot be compared ( ) Bad ( )
22. Are you satisfied with the loan installment

Yes ( ) No ( )
23.Overall opinion about bank

Very good ( ) Average ( )
Good ( ) Bad ( )
Date Signatures

CORPORATION BANK
BIBLIOGRAPHY
Books:
 Baligar G.B, Law and Practice of Banking, Ashok Prakasher, Hubli.
 Gordon and Natarajan, Banking Theory Law and Practice Himalaya Publishing
House, Mumbai.
 Raman B.S, Banking Theory and Practice, United Publishers, Mangalore.
 Premkumar Srivatsava, Banking Theory and Practice, Himalaya Publishing
House, Mumbai-2007.
Others
 Annual Report-Corporation Bank
 www.corporationbank.com
 www.rbi.com

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CORPORATION BANK

Vision of Banks in India

Objectives of the Study

Indian Banking Industry

B.B.M., ATNCC, Shimoga Page No. 1

Since the banking activities were started in different countries, there is no

B.B.M., ATNCC, Shimoga Page No. 2

According to Kinley, “A bank is an establishment which makes to individual such

VISION OF BANKS IN INDIA

OBJECTIVES OF THE STUDY

2. To know the effective utilization of credit facilities provided by the bank.

3. To study the various corp loan facilities are available to customer.

4. To study the establishment, growth and progress of customer service provided by

B.B.M., ATNCC, Shimoga Page No. 3

B.B.M., ATNCC, Shimoga Page No. 4

Bank is a unique institution that creates money and acts as a financial

B.B.M., ATNCC, Shimoga Page No. 5

A Bank is a commercial or state institution that provides financial services,

Currently in most jurisdictions commercial banks are regulated and require

B.B.M., ATNCC, Shimoga Page No. 6

In case of Current Deposit Account, a customer is allowed to deposit or withdraw

B.B.M., ATNCC, Shimoga Page No. 7

B.B.M., ATNCC, Shimoga Page No. 8

c. Safe Custody Services

INDIAN BANKING INDUSTRY

B.B.M., ATNCC, Shimoga Page No. 9

As far as the present scenario is concerned, the banking industry in India is in a

B.B.M., ATNCC, Shimoga Page No. 10

The brief description of Banks in India is as below.

2. Public Sector Banks

3. Private Sector Banks

B.B.M., ATNCC, Shimoga Page No. 11

• New Generation banks

Co-operative banks include the following.

Development banks/industrial financial institutions are as below.

B.B.M., ATNCC, Shimoga Page No. 12

5. Scheduled banks and non scheduled banks

B.B.M., ATNCC, Shimoga Page No. 13

Chapter 2-Company Profile

History of Corporation Bank

Organisation Structure of Sagar Branch

B.B.M., ATNCC, Shimoga Page No. 14

HISTORY OF CORPORATION BANK

B.B.M., ATNCC, Shimoga Page No. 15

Corporation Bank had the honor of paying host to many a distinguished

B.B.M., ATNCC, Shimoga Page No. 16

100yrs of Corporation Bank

As a part of the Bank’s centenary celebrations, a number of programmes and

B.B.M., ATNCC, Shimoga Page No. 17

WORK FLOW MODEL OF CREDIT DIVISION CORPORATION BANK

PROPOSAL SENT TO THE

KNOW YOUR CUSTOMER (KYC)

TERMS AND CONDITIONS

APPRISAL OF THE PROPOSAL

The following is the process of credit divisions:-

B.B.M., ATNCC, Shimoga Page No. 18

Proposal sent to the sanctioning authority

Know your customer

Communication of the terms and conditions

Database is created regarding the proposal

B.B.M., ATNCC, Shimoga Page No. 19

Appraisal of the proposal