Loans And Advances

Corporate Guide Abhyudaya Cooperative Bank Mr. Krishnakumar B. Sawant

Faculty Guide IBS Mumbai Ms. Rajini Anand

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Overview of Abhyudaya Cooperative Bank

Loan origination Credit Sanction process and execution Loan Disbursement process Post Sanction monitoring and repayment What if loan is not repaid as per sanctioned terms Loan closure formalities and handover of original documents What is current strategy focus area for the bank

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Abhyudaya Cooperative Bank

Started In Number of Branches Functions in 3 States Operative Areas

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Loan origination

Walk In Customer Marketing Target Customers

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Credit sanction process and execution

KYC Norms CIBIL Report Income Tax Return for past 3 Years Scrutiny Security of the Documents Drawing power generated from Salary or through Profit - Customers past record is being checked - Growth rate is being analysed
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Loan disbursement process

- File is passed to the Sanctioning Authority - Documentation - Stamp paper Franking is done - Papers are signed by all borrowers in front of Concern Authority, Officer of the Bank - Loan account is open in name of borrower - Limit is debited to loan account and amount is disbursed according to Borrowers requirement

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Post sanction monitoring and repayment

Monthly financial reports are asked Bank personal needs to visit the site Remark is been made (CC) Stock Statement Which decides the drawing power Reminder is been sent for the payment of loan

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What if loan is not repaid as per sanctioned terms

- First 90 days - Then Defaulter1 - Defaulter2 - Defaulter3 Turned in to Non performing assets - Defaulter4 Notice is being sent for payment of instalment - Defaulter5 - Defaulter6 - Receiver appointed by arbitrator Central Registrar, Delhi.

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Loan closure formalities and handover of original documents

Outstanding balance are being paid Customer needs to apply for return of Original Document It takes 7 days for bank to respond 2 NOCs are issued no outstanding amount needs to be paid termination of the hypothecation agreement It is a confirmation that the bank no longer has an interest in the property.
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What is current strategy focus area for the bank

To generate more Revenue from the II tier cities Work on NPAs Generate more Customer Relationship Making more facilities as per Technological Change

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Thank You

- Presented By,
- Sameer Tawde - 12BSP1086

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24-09-2013