HEAD OFFICE

SHREE RAJKOT DISTRICT CO-OPERATIVE BANK RAJKOT .

Project Report On
CREDIT MANAGEMENT & NPA

Of

Submitted To
SHREE SHARDA VIDYA BHAVAN OF MANAGEMENT STUDIES

On
JULY 2O11,2012
In par !a" #$"#!""%&n '# ($%%&r ra!n!n) a( a par '# ( $*+ In A*,an-& P'( Gra*$a !'n D!p"'%a !n B$(!n&(( A*%!n!( ra !'n

By

CHI.ANI SONALI A/

DECELARATION
Myself CHIKANI SONALI A. Enrolment No 809140320110, Cl ss A!"#$ of t%e N me of t%e st&'y (enter S%ree S% r' )*'y +% , n, #r. + - s %e- Am-e'. r O/en 0n*,ers*ty, A%me' -e' 10 %ere-y 'e(l re t% t t%e 2r *n*n3 4e/ort ent*tle' "ot m o%er 'e3ree.Asem*ner /resent t*on of t%e !ro7e(t 4e/ort 6 s m 'e on N!A s&33est*on s //ro,e' -y t%e f (&lty 6ere '&ly *n(or/or te'. o5 *n n' t%e or*3*n l 6or. n' t%e s me % s not -een s&-m*tte' to ot%er Inst*t&te for t%e 6 r' of ny

Shard Vidya Bhavan Rajkot

Date :Place :- Rajkot ___________ Chikani Sonali A.

PREFACE
+ n.s re re3 r'e' s t%e -loo' of t%e n t*on8s e(onomy 6*t%o&t t%em one ( nnot *m 3*ne e(onomy mo,*n3. 2%erefore - n.s s%o&l' -e o/er te' ,ery eff*(*ently, (o9 o/er t*,e - n.s lt%o&3% sm ll / rt of 6%ole - n.*n3 system *n In'* , -&t t%ey re ,ery *m/ort nt not only from e(onom*( l /o*nt of ,*e6 -&t lso from so(* l /o*nt of ,*e6 s *t *s more (on(erne' -o&t (ommon /eo/le8s 6elf re n' 'e,elo/ment. A', n(e *s %e rt n' re(o,ery *s o:y3en for t%e - n. n' for t%e - n. to s&r,*,e *t *s ne(ess ry to 3*,e ', n(es n' re(o,er t%e mo&nt t t%e //ro/r* te t*me. 2%ro&3% (re'*t m n 3ement I % ,e tr*e' to (o,er t%e , r*o&s s/e(ts l*.e (re'*t //r *s l, N!A m n 3ement, re(o,ery m n 3ement, et(. E.3. (re'*t m n 3ement (o,ers ll t%e re s r*3%t form t%e -e3*nn*n3 l*.e *n;&*ry t*ll t%e lo n % s -een / *' &/. 2%o&3% (re'*t m n 3ement, ,ery , st to/*(, I % ,e tr*e' to *n(or/or te to t%e -est of my ( / (*ty from ll /oss*-le s/e(ts *n t%*s /ro7e(t. I 'o %o/e t% t *nst*t&t*on 6*ll //re(* te t%*s /ro7e(t.

AKNOWLEDGEMENT
We can not determine milk of how many cows feed our body. non I -el*e,e n o(e n *s f*lle' -y 'ro/s n' e (% n' e,ery 'ro/ s%o&l' (o&nt, s*m*l rly I s%o&l' (o&nt f ,or of ll my %el/ers %ere -&t t%*s not /oss*-le. So for3*,e me for t%e s me. $*rst of ll I 6o&l' l*.e to t% n. Board of !irectors. I m t% n.f&l to 3ener l m n 3er ".#.$ara%ara to 3*,e me /erm*ss*on for t%e s&mmer tr *n*n3. I 6 nt to e:/ress my s*n(ere o-l*3 t*on to B.&.'adani Sir( R.). Bhut( ).*.Ru%a%ra +.R. Vacariya &.!.*odhani, Vasrambhai *odhani, n' ll t%e st ff mem-ers of 4#C+, 6%ere I 6or.e' so lon3 *n %omely /le s nt tmos/%ere. Es/e(* lly, I 6o&l' l*.e to 2% n. ,.V.Boda Sir n' R.V. )anara Sir, my mentor 6%o 3&*'e' me *n my 6or.. I m t% n.f&l to !r. R.S.Shah <#*re(tor of o&r (olle3e= n' &r. +a%il rora Sir for t%e*r 3&*' n(e n' &iss nita $homas for t%e rr n3ement of s&mmer /l (ement. L st -&t not le st my f m*ly > fr*en's, 6%*(% *s l6 ys -e%*n' me *n my 6or. for s&//ort ny t*me. 2% n.*n3 yo&,

Date :Place ?9 Yours Faithfully, CH !A" S#"A$ A.

OBJECTIVE OF STUDY
+ n.*n3 *s t%e (t*,*ty of my *nterest. I % ,e seen from t%e nn& l re/orts of t%e , r*o&s - n.s n' f*n' t% t most of t%e*r *n(ome *s from t%e *nterest 3ett*n3 on t%e (re'*t 3*,en so I (%oose n' %en(e I st&'*e' on (re'*t m n 3ement. " me of st t*st*(s *s l6 ys ttr (ts me n' - n.*n3 *s one t%e /l (e 6%ere 6e ( n le rn *t ,ery 6ell. So I % ,e sele(te' - n. n' % ,e /referre' @(re'*t m n 3ement > N!AA s to/*( for my /ro7e(t.

RESEARCH METHODOLOGY
2%ere re m ny met%o's, 6%*(% re 6ell .no6n to' y for rese r(% met%o'olo3y, o&t of 6%*(% one I % ,e (%osen *s @s m/l*n3 met%o'A, 6%*(% *s re lly e s*er, st*ll /ro'&(*n3 ((&r te res&lts. S m/l*n3 *n l ymen8s l n3& 3e, *s not%*n3 -&t sele(t*n3 /o(.ets or s m/les re/resent*n3 t%e 6%ole 3ro&/ n' n lys*s of t%ese s m/les 3*,es t%e *'e 2%o&3% t%*s *s not -o&t t%e res/e(t*,e 3ro&/s. On t%e - s*s of t%*s, /re'*(t*on *s 'one n' f&ll *nform t*on -o&t 3ro&/ *s *nte3r te'. f*rst % n' met%o', *t 3*,es s&ff*(*ently 3oo' o&t(omes *f &se' ( ref&lly -y e:/erts. It s ,es t%e t*me n' ener3y. 2%e only ( re s%o&l' -e t .en, *n or'er to % ,e 3re t ((&r (y, *s sele(t*on of s m/le s%o&l' -e s&(% t% t *t s%o&l' re/resent t%e 6%ole 3ro&/ n' *nform t*on 6e 3et from t%em s%o&l' -e (ent /er(ent rel* -le. Salient features of my chosen sample 2%e -*33est (o9o/er t*,e - n. % ,*n3 %e ' off*(e *n my ,*(*n*ty en -les me to 'o my 6or. eff*(*ently. 2%*s *s t%e str*.*n3 fe t&re of my s m/le. 2%e e:(l&s*,e s(%e'&le - n. *n 4 7.ot n' %en(e 3ets /r*or*ty o,er t%e ot%ers. "ener lly t%e ne6 - n. l (.s t%e e:/er*en(e so *t *s m n' tory to sele(t 6%*(% % s enormo&s e:/er*en(e. 4#C+ % s ye rs, &n'er t%e l*3%ts of 6%*(% 6or. -e(omes e s*er. 2%e ot%er en(% nt*n3 /o*nt *s t% t 4#C+ % ,e m :*m&m n&m-er of s% re%ol'er. s m/le, 3*3 nt*( e:/er*en(e of s&((essf&l 41

TABLE OF CONTENT
Preface Ackno%le&'e(ent #)jecti*e of stu&y Research (etho&olo'y Content -.-"/$0V- S/&& R1 "+R#D,C+ #" E rly %*story of - n.*n3 Or*3*n of 6or' B- n.8 St t&s 6*se -*f&r( t*on of - n. 2y/es of - n. 4#C+ 9 2%e Sm ll M n8s +*3 + n. PR#-.C+ H*story of 4#C + n. M *n $&n' Inflo6 <so&r(es of f&n's= M *n f&n' o&tflo6 <f&n's &se'= Me n*n3 of (re'*t n' (re'*t m n 3ement $orms of (re'*tC ', n(es 2*me 6*se -*f&r( t*on of ', n(es Se(&r*ty 6*se -*f&r( t*on of ', n(es !ro(ess of (re'*t CR.D + P#$ CY "ener l el*3*-*l*ty (r*ter* for (re'*t *n 4#C+ 2 -le of *nterest r te on , r*o&s ', n(es S(r&t*ny of (re'*t 2y/es of (re'*t E:/l n t*on of ll ty/es of (re'*t # t n lys*s n' o-ser, t*on n' s&33est*on

CR.D + APPRA SA$ A//r *s l form t O-ser, t*on n' s&33est*on CR.D + /#" +#R "0, F#$$#1 ,P A"D R.2 .1 Cre'*t mon*tor*n3 system *n 4#C+ $ollo6 &/ (t*ons for (re'*t mon*tor*n3 *n 4#C+ O-ser, t*on n' s&33est*on "PA /A"A0./."+ I'ent*f*( t*on of Non !erform*n3 A', n(es Asset (l ss*f*( t*on Cl ss*f*( t*on of Non !erform*n3 A', n(es !ro,*s*on for N!A $*n'*n3s <re son for N!A= S&33est*ons <N!A re'&(t*on te(%n*;&es= R.C#2.RY !ro(ess of re(o,ery $*n'*n3Co-ser, t*on $ / +A+ #" #F S+,DY 3 3$ #0RAPHY

EXECUTIVE SUMMARY
Name of the student Name of the institution : : CHIKANI SONALI A. sharda vidha bhavan .!. "ANA A aj%ot &istrict Co'Operative !an%

Name of the project Guide: Name of the or#ani$ation : "urpose of the "roject

: Stud( of Indian !an%in# performs in credit po)ic( * non performin# assets : +o stud( the Indian co'operative ban%in# sector +o stud( the different aspects of the financin# in India +o stud( and ana)($e different instruments for credit mana#ement. +o stud( the procedure for Credit atin# in India Steps to be ta%en ,hich are in best interest of the !an%. : +he project is a b)end of the primar( ,e)) as the secondar( data. +he data

Objectives

-ethodo)o#( as ,ere

from the !an%.s past record /various ,ebsites/ pub)ications and other projects. Conc)usion met. : +he project has been comp)eted Successfu))( and the objectives ,ere

EARLY HISTORY OF BANKING

As e rly s 2000 +.C., t%e + -ylon* ns % s 'e,elo/e' - n.*n3 system. 2%ere *s e,*'en(e /er*o' of t*me, t%ere 6 s

to s%o6 t%e tem/les of + -ylon 6ere &se' s - n.s. After

s/re ' of *rrel*3*on, 6%*(% soon 'estroye' t%e /&-l*( sense of se(&r*ty *n 'e/os*t*n3 money n' , l& -le *n tem/les. 2%e /r*ests 6ere lon3er (t*n3 s f*n n(* l 4D 3ents. 2%e 4om ns '*' m*n&te re3&l t*ons, s to (on'&(t /r*, te - n.*n3 n' to (re te (onf*'en(e *n *t. Lo n - n.s 6ere lso (ommon *n 4ome. $rom t%ese t%e /oor (*t*5ens re(e*,e' lo ns 6*t%o&t / y*n3 *nterest, 3 *nst se(&r*ty of l n' for 3 or 4 ye rs. #&r*n3 t%e e rly /er*o's, lt%o&3% /r*, te *n'*,*'& ls mostly '*' t%e - n.*n3 -&s*ness, m ny (o&ntr*es est -l*s%e' /&-l*( - n.s e*t%er for t%e /&r/ose of f (*l*t t*n3 (ommer(e or to ser,e t%e 3o,ernment. Ho6e,er, &/on t%e re,*, l of (*,*l*5 t*on, 3ro6*n3 ne(ess*ty for(e' t%e *ss&e' *n t%e m*''le of t%e 12t% (ent&ry n' - n.s 6ere est -l*s%e' t )en*(e n' "eno . 2%e + n. of )en*(e est -l*s%e' *n 11DE *s s&//ose' to -e t%e most n(*ent - n.. Or*3*n lly, *t 6 s not - n. *n t%e mo'ern sense, '&r*n3 s*m/ly n off*(e for t%e tr nsfer of t%e /&-l*( 'e-t. A3 *n t%e or*3*n of mo'ern - n.*n3 m y -e tr (e' to t%e money 'e lers *n $loren(e, 6%o re(e*,e' money on 'e/os*t, n' 6ere len'ers of money *n t%e 14 t% (ent&ry n' lso *n 1349, t%e -&s*ness of - n.*n3 6 s ( rr*e' on -y 'r /ers of + r(elon . In In'* , s e rly s t%e )e'*( !er*o', - n.*n3, *n most (r&'e from e:*ste'. 2%e -oo.s of M n& (ont *n referen(es re3 r'*n3 'e/os*ts, /le'3es, /ol*(y of lo ns, n' r te of *nterest. 2r&e, t%e - n.*n3 *n t%ose ' ys l r3ely m*nt money len'*n3 n' t%ey '*' not .no6 t%e (om/l*( te' me(% n*sm of mo'ern - n.*n3. 2%*s *s tr&e not only *n t%e ( se of In'* -&t lso of ot%er (o&ntr*es. Alt%o&3%, t%e -&s*ness of - n.*n3 *s s ol' s &t%ent*( %*story, - n.*n3 *nst*t&t*ons % ,e s*n(e t% n (% n3e' *n (% r (ter n' (ontent ,ery m&(%. 2%ey % ,e 'e,elo/e' from *n,ol,*n3 t%e s t*sf (t*on of fe6 s*m/le o/er t*on fe6 *n'*,*'& l 6 nts to t%e (om/l*( te' me(% n*sm of

mo'ern - n.*n3, *n,ol,*n3 t%e s t*sf (t*on of ( /*t l slo6ly see.*n3 em/loyment n' t%&s /ro,*'*n3 t%e ,ery l*fe -loo' of (ommer(e. THE ORIGIN OF WORD BANK 2%e 6or' B+ n.8 *tself 'er*,e' from t%e 6or' B- n(&s8 or B- n;&e8 t% t *s B- (.8 me n*n3 7o*nt for 6%*(% 6 s It l* n*se' *nto B- n(o8. $ren(%. 2%ere

6ere ot%ers of t%e o/*n*on t% t t%e 6or' B+ n.8 *s or*3*n lly 'er*,e' from t%e "erm n 6or'

STATUS WISE BIFURCATION OF BANKS Scheduled Banks. Non-Scheduled Banks. Scheduled Banks In f*rst s(%e'&le, "o,ernment of In'* not*f*es t%e !r*m ry + n.s, 6%*(% re l*(ense' n' 6%ose 'em n' n' t*me l* -*l*ty re not less t% n D0 (rores *n 198E. "o,ernment of In'* not*f*es t%e !r*m ry - n.s, 6%*(% re l*(ense' n' 6%ose 'em n' n' t*me l* -*l*ty re not less t% n 100 (rores ( n only ;& l*fy to -e *n(l&'e' *n t%e se(on' s(%e'&le s*n(e 1993. A - n. -e(omes s(%e'&le' 6%en *t f&lf*ls t%e follo6*n3s? BA8 3r 'e r t*n3 from 4+I #em n' n' 2*me L* -*l*ty o,er 100 Crores S t*sfy t%e 4+I 3&*'el*nes rel te' to C44 n' SL4 As /er t%e norms !r*or*ty Se(tor 6*se len'*n3 +enef*ts of +e*n3 S(%e'&le' (o9o/er t*,e re 'es(r*-e' -elo6? 4+I 6o&l' /ro,*'e 4e'*s(o&nt*n3 f (*l*ty t nom*n l r te 4+I 3*,es rem*tt n(e f (*l*ty t / r 2%e 'emer*t of -e*n3 s&-s*'y from 4+I. 2%e (onferment of s(%e'&le' st t&s on t%e - n.s % s (ert *n ', nt 3es l*.e ref*n n(e f (*l*ty, '*re(tly *n'&str* l f*n n(e from 4eser,e + n. of In'* , , *l of 4eser,e + n. of In'* 4em*tt n(e f (*l*ty s(%eme, ((e/t 'e/os*ts from lo( l -o'*es, ;& s*93o,ernment or3 n*5 t*on, rel*3*o&s, n' (% r*t -le *nst*t&t*ons, 3& r ntees n' (%e;&es *ss&e' -y + n.s re ((e/te' -y "o,ernment #e/ rtments. At t%e s me t*me, *t ( sts 3re ter res/ons*-*l*ty on t%e - n.s *n t%e m *nten n(e of -oo.s of ((o&nts n' s&-m*ss*on of ret&rns. #on2Scheduled Bank 2%e - n.s, 6%*(% re not //l*( -le s /er t%e (r*ter* of S(%e'&le' + n.s, re ( lle' s Non9s(%e'&le' + n.s. 2%ese re ,ery sm ll - n.s. s(%e'&le' (o9o/er t*,e - n. *s t% t t%e - n. 6*ll not 3et 0.DF

TYPES OF BANKS
4e3*on l 4&r l + n. N t*on l*5e + n. St te + n. "ro&/ Co9o/er t*,e + n. !r*, te + n. $ore*3n + n.

RESERVE BANK OF INDIA

2%e H*lton9yo&n3 (omm*ss*on, //o*nte' *n 1921 % s re(ommen'e' t%e ne(ess*ty of n' f*n n(* l (entr lly em/o6ere' *nst*t&t*on to % ,e effe(t*,e (ontrol o,er (&rren(y

tr ns (t*on *n t%e (o&ntry. A((or'*n3ly, t%e "o,ernment % ' t%en / sse' 4eser,e + n. of In'* A(t, 1934 n' est -l*s%e' t%e 4eser,e + n. of In'* 6*t% effe(t from 1 st A/r*l 193D. 2%e /r*n(*/ l *m -e%*n' t%*s 6 s to or3 n*5e /ro/er (ontrol o,er t%e (&rren(y m n 3ement *n t%e *nterest of (o&ntry -enef*ts n' to m *nt *n f*n n(* l st -*l*ty. G*t% t%*s, t%e 4+I m *nly loo.s fter t%e follo6*n3 *m/ort nt f&n(t*ons? 2o .ee/ effe(t*,e (ontrol o,er (re t*on of (re'*ts n' (&rren(y s&//ly 2o (ontrol t%e + n.*n3 tr ns (t*ons of Centr l n' St te "o,ernments 2o (t s Centr l 'm*n*stere' A&t%or*ty of ll ot%er + n.s *n t%e Co&ntry. 2o or3 n*5e (ontrol o,er $ore*3n C&rren(y 2r ns (t*on 2o ss*st for *m/ro,ement *n f*n n(* l s/e(ts of t%e (o&ntry #ationali3e Banks 2%e + n.*n3 Com/ ny A(t est -l*s%es *t *n H&ly 1919 -y n t*on l*5 t*on of 14 m 7or - n.s of In'* . 2%e sent /er(ent o6ners%*/ of t%e - n. *s of 3o,ernment of In'* . State Bank *rou% 2%e St te + n. of In'* 6 s est -l*s%e' &n'er t%e St te + n. of In'* A(t, 19DD, t%e s&-s*'* ry - n.s &n'er t%e St te + n. of In'* <s&-s*'* ry + n.s= A(t, 19D9. 2%e 4eser,e + n. of In'* o6ns t%e St te + n. of In'* , to l r3e e:tent, n' rest of t%e / rt *s some

/r*, te o6ners%*/ *n t%e s% re ( /*t l of St te + n. of In'* . 2%e St te + n. of In'* o6ns t%e s&-s*'* ry + n.s. 4ld )rivate Banks 2%ese - n.s re re3*stere' &n'er Com/ ny A(t, 19D1. + s*( '*fferen(e -et6een (o9 o/er t*,e - n.s n' /r*, te - n.s *s *ts *m. Co9o/er t*,e - n.s 6or. for *ts mem-er n' /r*, te - n.s 6or. for e rn /rof*t. #ew )rivate Banks 2%ese - n.s le ' t%e m r.et of In'* n - n.*n3 -&s*ness *n ,ery s%ort /er*o', -e( &se of *ts , r*ety of ser,*(es n' //ro (% to % n'le (&stomer, lso -e( &se of lon3 6or.*n3 %o&rs n' s/ee' of ser,*(es. 2%*s *s lso re3*stere' &n'er t%e Com/ ny A(t, 19D1. 5orei6n Banks $ore*3n + n. me ns m&lt*9(o&ntr*es - n.. In ( se of In'* $ore*3n + n.s re s&(% + n.s, 6%*(% o/en *ts -r n(% off*(e *n In'* Re6ional Rural Banks 7RRB8 4e3*on l 4&r l + n.s re ''e' *n In'* n + n.*n3 s*n(e O(to-er 19ED. 2%e "o,ernment of In'* *n terms of t%e /ro,*s*on of t%e 4e3*on l 4&r l + n. A(t 19E1 % s est -l*s%e' t%ese - n.s. 2%e '*st*n(t*,e fe t&re of 4e3*on l 4&r l + n. *s t% t t%ro&3% *t *s Centr l "o,ernment, 6%*le est -l*s%*n3 4e3*on l 4&r l + n. se/ r te -o'y (or/or te 6*t% t%e Commer(* l + n., 6%*(% % s s/onsore' t%e /ro/os l to est -l*s% *t. 2%e t t%e re;&est of Commer(* l + n., s% ll s/e(*fy t%e lo( l l*m*ts 6*t%*n 6%*(% *t s% ll o/er te. 2%e 4e3*on l 4&r l + n. m y est -l*s% *ts -r n(%es or 3en(*es t ny /l (e 6*t%*n t%e not*f*e' re . St te + n. of S &r s%tr s/onsors 4e3*on l 4&r l + n.s *n S &r s%tr . "o2o%erative Banks State Co-operative Banks St te Co9o/er t*,e + n. me ns t%e /r*n(*/ l Co9o/er t*,e so(*ety *n t%e st te. 2%e /r*m ry o-7e(t*,e of 6%*(% *s t%e f*n n(*n3 ot%er (o9o/er t*,e so(*et*es *n t%e st te. Central / District Co-operative Banks n' t%e*r %e ' off*(e *s o&ts*'e of In'* .

Centr l C #*str*(t (o9o/er t*,e + n. me ns t%e /r*n(*/ l (o9o/er t*,e so(*ety *n '*str*(t. Primary / Ur an Co-operative Banks

'*str*(t,

t%e /r*m ry o-7e(t*,e of 6%*(% *s t%e f*n n(*n3 of ot%er (o9o/er t*,e *n t% t / rt*(&l r

2%e /r*m ry o-7e(t*,e of /r*n(*/ l -&s*ness of 6%*(% t%e tr ns (t*on *s of - n.*n3 -&s*ness n' / *' &/ s% re ( /*t l n' reser,e of 6%*(% re not less t% n r&/ees 100,000 n' -ye9 l 6s of 6%*(% 'o not /erm*t 'm*ss*on of ny ot%er (o9o/er t*,e so(*ety s mem-er.

RDCB - The Sma

Ma!" B#$ Ba!%

A 0 KO+

SH I A0KO+ &IS+ IC+ CO'O"1 A+I21 !ANK L+&.. HIGHLIGH+S 3AS ON 45'64'76689 1) 2) ,) *) 5) 6)3 -) 5) 9) 10) 11) 12) 1,) 1*)

Bank was registered in 1959 and have commenced working in 1960 Bank is holding business Licence No !"#$ % &'( % 55 ) # dt 1*+91199* Bank is having 12- branches in the district Bank having 65 its own Branch building including head o..ice -2 branches having its own /a.e $e0osit Lockers .acilities 1including '2) Bank having --0 em0lo4ees &s on $t ,1+0,+2006 1115 in 'ead o..ice 6 652 in branches) 101 Branches including ' 2 are #om0uteri7ed and remains will be covered within 8uarter .or 1009 #om0uteri7ation Last ,1 4ears bank is obtaining &udit #lass :&; <he total de0osit is !s 6-- 65 crores3 which consist 5- 0,9 law cost de0osit Bank having shares ca0ital o. !s 21,5 01 =akhs3 !eserve .und and other .unds !s 9-,5 lakhs3 working ca0ital !s 9,91) #rores <otal investment is !s 2036-0 =akhs 1with building3 .urniture > com0uter) Bank has obtained loans o. !s 113906 90 laklis <otal advances o+s are !s 6-* #rores Bank is earning 0ro.it since its beginning &s on ,1st (arch3 2006 a.ter enough "rovisioning the Net "ro.it was o. !s 1065I- lakhs

15) 16) 1-) 15) 19)

Bank is 0a4ing ma?imum dividend according to the 0rovisions o. the &ct3 since last 1* 4ears &/ on ,1st (arch3 2006 the cost o. management was 2 259 1&verage) &s on ,1),)06 .inancial margin o. the bank is , 619 and net margin is 1 *-9 level 1&verage) #a0ital risk ade8uac4 ratio as on ,1)0,)2006 is 12 509 /ince last 12 4ears Bank is receiving .irst 0ri7e .rom the @/#B .or the best recover4 0er.ormance &s on ,0th Aune3 2005 recover4 was 99 5-9 !ate o. interest on de0osits are between *9 to -9 (a?imum /hort <erm &gri Loan issued during the 4ear 2005)06 was !s 6*3-1* *5 2- lakhs at the rate o. interest .rom - 59 to 10 59 as 0er @2lBs doubling criteria 2ut o. 555 non)subordinate sta.. 2,1 em0lo4ees are trained as on date ,1+,+2006 &s on 4ear ending 2006 there the Non)0er.orming &ssets were !s 1551 -- =akhs3 thus gross N"& 2 -99 and net N"& is 0 5,9 o. C total assets &s 0er 0rudential norms bank has made the 0rovision o. !s 2556 ,0 lakhs against the re8uirement o. !s 2363.50 Lakhs .or loan outstanding o. !s 6-3,9- 1, Lakhs 2n , 1),)05 the total number o. an a..iliate borrowing "&#/ are *,6 out o. these *12 are 0ro.it making Dach societies having its own godown .acilities and having inde0endent well 8uali.ied secretaries &verage work load "er /ta.. during the 4ear 2005)06 was !s 151 21 Lakhs <here are **0 "&#/ a..iliated with the Banks 2ut o. **0 "&#/ , are overdue as on ,1),)2006

20) 21)

22) 2,)

2*)

25) 26) 2-) 25)

29) ,0)

#ost o. management o. the societies is at the level o. 1 -5 0ercentage 1&s on ,1),)05) Bank has introduce a @rou0 " & =nsurance "olic4 to cover the risk o. !s 150 lakhs .or the regular loanee members o. the societies Bank has 0aid !s 126 =akhs out o. total "remium o. !s 160 =akhs Bank has started the 0rovide medical bene.it scheme .or "&#/ member .rom this 4ear and 0aid Rs.9,75,8001- to 200 kidne43 stone3 cancer3 Brain 'amrage3 "aral4sis > 'eard attach 0atients as social obligation o. Bank Bank is alwa4s doing 0re0lanning .or the better recover4 Bank is arranging regular meeting at taluka level 0laces .or the 0ro0er 0lanning3 in 0resence o. branch managers3 ins0ectors3 7onal o..icers3 $4 manager3 managers3 local directors and secretaries o. the societies !aEkot $istrict bi.urcated in .ive 7one headed with $4 (anager Fonal Dver4 0ossible e..ort are made .or better and in time 1009 recover4 Bank has received Give times in a raw the :Best "er.ormance &ward; .or its better 0er.ormance in all as0ects o. working at the /tate Level along with the shield3 certi.icate o. merits and cash 0ri7e .rom N&B&!$ Bank has send 56 "&#/ secretaries .or training at N=#( @andhinagar > 0aid their e?0ense H !s 1000 0er each Bank is 0a4ing !s 2500I) to each new .ormatted (ilk "roducerBs societ4

,1)

,2)

,,)

,*)

,5)

,6) <here are 6,2 total storage godown with "&#/ o. which 1,5 "&#/ are with 201 godown o. National greed scheme ,-) !ecentl4 510 godownBs loan is $isbursed under :!ural @odown scheme; 1#redit link #a0ital investment subsid4 scheme) <o im0lement J # # scheme at ver4 .irst 4ear bank has 0rovide total e?0ense o. !s 1635-3500=) related J # # card > stationer4 e?0es

,5)

,9) *0) *1) *2) *,)

&s 0er N&B&!$ and @ 2 guidelines bank has issued 1-5695 Jisan #redit #ards Bank is .irst in =ndia .or launching :/mart Jisan #redit #ard; .rom 4r 200*)05 as a additional .acilit4 to J # # 'older <otal 0riorit4 sector loan outstanding o. !s *229* ,5 lack as on ,1+12+05 Bank has issued 1105 swaroEgar credit card under N&B&!$B/ scheme <here are 10,5 /'@s > /B Nc with bank branches &nd bank has sanctioned loan o. !s 26 9- .or 121 /'@s

**)

Bank is awarded .or / ' @ linkages 0rogramme .or last <K2 4ea

+OA4# O$ #I4EC2O4S

SH4EE )I2HAL+HAI 4A#A#IA CHAI4MAN

SH4I "HANSHIAM KHA2A4IA )ICE CHAI4MAN

SH4I )A"HAHI+HAI +O#A MANA"IN" #I4EC2O4

#4. #AIA+AHI !A2EL #I4EC2O4

MA"AN+HAI "HONIIA #I4EC2O4

CHHA"AN+HAI SOHI24A #I4EC2O4

A4)IN#+HAI 2A"A#IA #I4EC2O4

"O4#HAN+HAI #HAMALIIA #I4EC2O4

"AH4AHSIN" HA#EHA #I4EC2O4

MOHAN+HAI K0N#A4IIA #I4EC2O4

+ECHA4+HAI CHA#MIIA #I4EC2O4

MA"AN+HAI )A#A)IIA #I4EC2O4

2ALSI+HAI 2ALA!A4A #I4EC2O4

#INESH+HAI +H0)A #I4EC2O4

HA4#E)SIN" HA#EHA #I4EC2O4

HA4HI+HAI AHANI #I4EC2O4

#4. IA"NESH+HAI HOSHI #I4EC2O4

4AHEN#4A+HAI !ONKIIA #I4EC2O4

NAN0+HAI )A"HANI #I4EC2O4

+HAN0+HAI MEH2A #I4EC2O4 HAIN2I+HAI #HOL #I4EC2O4 C.N.2A4A!A4A "ENE4AL MANA"E4

K0)E4HI+HAI +A)#IIA #I4EC2O4

LALHI+HAI SA)ALIIA #I4EC2O4

M.H.!A4MA4 #I4EC2O4

Ge!e&a
S% re C /*t l n' no. Of Mem-ers A((or'*n3 to l st ye r t%e tot l mo&nt of s% re f&n' 6 s 1903.4D L (.s. In t% t t%e tot l *n(re se 6*t%*n t%*s ye r 23D.48 L (.s on 319039200D t%e tot l s% re %ol'er 6 s 802 '&r*n3 t%*s ye r 41 ne6 '' n' 4 % s le ,e t 3193901 t%e follo6*n3 / rt*(&l r of 839 mem-er. In'e: 1 2 3 4 D 1 E 8 9 ! rt*(&l r A3r*(&lt&re (o9o/er t*,e M n'l* Non A3r* . (o o/er t*,e M n'l* Ot%er M n'l*es !eo/le Co9O/er t*,e + n. 2 l&. M n'l* M*l. /ro'&(e M n'l* Ho&s*n3 M n'l* G ter *rr*3 t*on M n'l* O*l /ro'&(t*on M n'l* S% re %ol'er 44E 241 21 13 19 10 14 12 2 S% re ( /*t l 4s. In l (. 1EDE.00 211.11 8.11 110.E8 39.82 3.18 2.02 2.29 1.0

Reser*e an& fun& At t%e en' of 3190390D tot l mo&nt 6*t% f&n' 6 s 9084.1D '&r*n3 t%e ye r t%e *n(re se of mt. 4s. 1D0.98 t t%e en' of t%e ye r t%e tot l mt. *s 9E3D.11 L .s . Sa*in's In t%e /resent t*me of l*-er l*5 t*on > 3lo- l*5 t*on *n - n.*n3 se(tor *s f (*n3 %*3%ly (om/et*t*on '&e to l r3e net6or. n' s&ff*(*ent f&n', n' ttr (t*,e s(%eme of /r*, te > N t*on l*5e - n. t%ey re m .*n3 lots of /rof*t from t%e lo ns of (rores of 4s. #&e to t%*s s*t& t*on, t%e Co9O/er t*,e - n.s sm ll net6or.. L*m*te' f&n's n' sm ll -&s*ness of (*ty8s > ,*ll 3e, n' l*m*te' lo ns 6%*(% 'e(*'e' -y NA+A4#, n' 6%*(% !rof*t m 'e t% t lso 30F t : -le ((or'*n3 to t%*s -&'3et Anno&n(e'. #&r*n3 t%*s str&33le t%*s - n. % s *n(re se t%ere s ,*n3 232 (rores to 1EE Crore 6*t%*n3 l st ten ye r. n*est(ent of fun&s. 0n'er 3&*'*n3 of 4+I > NA+A4# n' t%e 3o,ernor r&les ,Cs E1 t%e - n. s%o&l' *n,est t%ere f&n' *n (entr l 3o,t. st te 3o,t or re3 tr&st se(&r*t*es 6%*(% '*s(&s more 'et *l -e%*n'. .4ternal De)t N - ' % s !,t t%e ne6 s(%eme for - n.s t% t '*fferent s(%emes re s &n'er.

In'e: 1 2 3 4 D 1 $oans

! rt*(&l r S%orts term lo n <K.C.C.= !ro7e(t L n'*n3 4&r l Ho&s*n3 s(%eme NA+A4# non f rm t *ny (ott 3e NA+A4# A>S f rm C s% Cre'*t Non A3r*(&lt&re 2ot l

Amt <In l (.s= 1D9100.00 2492.19 102.82 DE4.2E E2D.11 249D.00 22890.39

0n'er 3&*'e of 3o,ernment of In'* for t%e /&r/ose of 3r*(&lt&re 'e,elo/ment t%e - n. % s 'e(*'e to ' --le t%ere lo ns 6*t%*n t%ree ye rs for t%*s /&r/ose &n'er <KCC= .*s% n (re'*t ( r' t%e - n. % ,e / ss lo n of 4s. 14E.14 Crore n' NA+A# % ,e s&//ort of 4s. 110 Crore. /e&iu( ter( A'riculture $oan. As /er t%e re;&*rement of f rmer 6%*(% nee's l*.e, *rr*3 t*on, S,4,2.O C ttle l n' /&r(% se t%e - n. % ,e / ss 4s. 32.E0 (rore n' ot%er tr (tor E tr *ler Lo n of 4s. 44 (rore. Annual cre&it 5lan As /er t%e 3&*'*n3 of reser,e - n. of In'* . 2%e t r3et for lo n *n '*str*(t of 4s. 1910.19 Cr. H&st 4#C - n. t r3et 6 s 4s. 100D.41 Cr. G%*(% 6 s lmost %*3%er t% n % lf. Self e(5loy(ent cre&it car& $or t%e est -l*s% self em/loyment *n r&r l re n' 'e,elo/ sm ll -&s*ness t%e 4#C - n. % s / ss 211 C r' n' lo n of 4s. 0.13 n' tot l 1144 C r' n' lo n of 4s. 2.11 Self hel5 'rou5 )ank linka'e 5ro'ra((e $or 'e,elo/ sm ll n' /oor /eo/le *n so(*ety n' 'e,elo/ment of t%ere (%*l' n' 3*,e t%em so(* l st t&s &n'er 3&*'e' of NA+A4# 1038 Self %el/ 3ro&/ + n. A((o&nt n' t%*s - n. % ,e / ss lo n of 4s. 0.2E Crore S(art !ishan Cre&it Car& <KCC= G*t%*n t%e (o9o/er t*,e - n. *n o&r (o&ntry 4 7.ot #*str*(t Co9O/er t*,e - n. *s f*rst 6%o % ,e st rte' t%*s f (*l*ty. In t%*s KCC t%e f rmer ( n 3et emer3en(y lo n &/ to 10.000.

"on A'riculture $oan Rural 0o&a%an Yojana Ie r 200D901 3o,t of In'* % s st rte' follo6*n3 s(%eme 6*t% s&-'&es . In'e: 1 2 3 Ie r 2003904 200490D 200D901 +otal No. of "o' 6 n 81 1DD 218 678 2ot l ( / (*ty of 3o' 6 n 13,800 21,400 28,400 9:,977 ! *' s&-s*'y mt. <4s. L (. 11.D4 102.14 81.E8 ;<6.69

Housin' loan $or t%e (onstr&(t*on or /&r(% se %o&se for res*'ent or -&s*ness '&r*n3 t%e ye r - n. % ,e / ss lo n of 4s. 1132.E1 L .%s, for 1201 Mem-er 313 *n 0r- n re t 4s. 833.E2 n' tot l Amt. of Lo n *s 1911.42 L (.s. $oan A'ain 0ol& -e%elry $or t%e emer3en(y nee' of money for t%e /eo/le of 4&r l or &r- n t%*s - n. *s /ro,*'e lo n &/ to D0,000 t r&r l re n' &/ to 1,00,000 t &r- n le,el. $#A" A0A "S ".S.C. = !.2.P > $ C $or t%e lo n 3 *nst /ost off*(e, n t*on l s ,*n3 (ert*f*( te K*s% n )*. s ! tr , *ns&r n(e /ol*(e, t%*s - n. /r*, te emer3en(y lo n *n ll t%e -r n(% *n t%e ye r 200DC01 for t%*s /&r/ose t%*s - n. % ,e /ro,*'e 2DD.ED l (.s lo n to E09 mem-ers

MAIN FUND INFLOW 'SOURCES OF FUNDS(

O6ne' 'e/os*t #e/os*ts +orro6*n3s Ot%ers !"ned deposit 2%e o6ne' f&n's (ons*st*n3 of / *' ( /*t l of t%e - n., reser,e f&n', n' ot%er reser,es. Deposits It *s s&m of (&rrent 'e/os*ts, f*:e' 'e/os*ts, s ,*n3 'e/os*ts, s/e(* l s ,*n3 'e/os*ts, N4I 'e/os*ts, *no/er t*,e 'e/os*ts, et(. It *s t%e m *n C s% Inflo6 for ny *nst*t&t*on. Borro"in#s 2%e -orro6e' f&n's (ons*st*n3 of -orro6*n3s from ot%er - n.s < s /er some 6r*ter 'e/os*ts of , r*o&s ty/es *s lso / rt of -orro6e' f&n's=, 'e-ent&res offere' to /&-l*(, et(. !thers In(re se *n (&rrent l* -*l*t*es, re'&(t*on *n 'e-tors, f&n' from o/er t*ons l*.e net *n(ome, 'e/re(* t*on, n' reser,es, less / yment to (re'*tors, re'&(t*on *n ', n(es, re'&(t*on *n *n,entor*es, re'&(t*on *n ( s%, sol' m r.et -le se(&r*t*es, et(.

MAIN FUND OUTFLOW 'FUNDS USED(

C44 <C s% 4eser,e 4 t*o= 6*t% 4eser,e + n. of In'* SL4 <St t&tory L*;&*'*ty 4 t*o= *n 4eser,e + n. of In'* Lo n -le $&n' Ot%ers C$$ %Cash $eserve $atio& "ith $eserve Bank !f 'ndia 2%e ( / (*ty of (re'*ts (re t*on of - n. *s 'e/en'*n3 &/on t%e*r ( s% flo6 re(e*,e'. 2o restr*(t t%*s (re'*t (re t*on, t%e reser,e - n. of In'* % s '*re(te' t%e*r terms. In ( se of s(%e'&le' - n.s n' se(.18 of - n.*n3 re3&l t*on (t re re;&*re' to m *nt *n t%e ( s% reser,e r t*o JK 4.EDF n' non9s(%e'&le' - n. K 3F of t%e*r 'em n' n' t*me l* -*l*ty mo&nts se/ r tely. 2%e s(%e'&le' - n.s re re;&*re' to 'e/os*t t%e ( s% reser,e r t*o mo&nt 6*t% 4eser,e + n. of In'* 6%*le t%e non9s(%e'&le' - n.s re re;&*re' to m *nt *n se/ r te ((o&nt for t%*s. 2%e 4eser,e + n. of In'* *s lso em/o6ere' to r *se t%e ( s% reser,e r t*o &/ to 1DF only *n res/e(t of s(%e'&le' - n.s. It *s m *nt *ne' re/orte' to 4+I e,ery fortn*3%t. J30t% A/r*l 4+I 'e(l re' ne6 (re'*t /ol*(y n' s /er t% t 4+I re'&(e' C44 6*t% 0.2DF #em n' n' t*me l* -*l*ty? (ime lia ility *s rel te' 6*t% t*me l*.e, f*:e' 'e/os*ts Demand lia ility *s rel te' 6*t% t%e 'em n' l*.e, C&rrent 'e/os*ts, *no/er t*,e 'e/os*t, n' m t&re' f*:e' 'e/os*ts S)$ %Statutory )i*uidity $atio& 2%e ( s% flo6 for re3&l r - n.*n3 tr ns (t*ons m *nly 'e/en's &/on 'e/os*t re(e*,e' *n t%e - n.. 2%e reser,e - n. of In'* t%ere fore /&ts some restr*(t*ons on &t*l*5 t*on of t%ese mo&nts. 2%e s(%e'&le' n' non9s(%e'&le' - n.s re re;&*re' to 'e/os*t 2DF mo&nt of t%e*r 'em n' n' t*me l* -*l*ty mo&nt *n t%e se(&r*ty //ro,e' -y reser,e - n. of In'* . 2%ese se(&r*t*es re (on,erte' *nto ( s% n' t%erefore t%ey re terme' s Bl*;&*' ssets8 n' 2DF mo&nt terme' s Bl*;&*' r t*o8. 2%e reser,e - n. of In'* *s em/o6ere' to r *se t%*s l*;&*'*ty r t*o from 2DF to 40F. It *s m *nt *ne' ,er 3e fortn*3%t n' re/orte' to 4+I. //ro,e' se(&r*t*es

)oana le +und Cre'*t 'e/os*t r t*o *s not more t% n E0F. Lo n -le f&n's me ns mo&nt of money, 6%*(% *s //l*( -le for len'*n3. 2%ree m *n f (tors o6n f&n', 'e/os*ts, n' -orro6*n3s 'e(*'e *t. A', n(es ( n ne,er -e more t% n lo n -le f&n'. Lo n -le f&n' *s tot l of? EDF of o6n f&n's E0F of 'e/os*ts 100F of -orro6*n3s !thers !&r(% se of f*:e' ssets, /&r(% se of m r.et -le se(&r*t*es, ''*t*on to ', n(es, ''*t*on to *n,entor*es, / yment to (re'*tors, / yment of '*,*'en', et(..

&eanin6 of "redit
2%e 6or' B(re'*t8 *s (t& lly 'er*,e' from t%e L t*n 6or' BCre'ere8. BCre'ere8 me ns to % ,e tr&st or f *t%. 2%&s B(re'*t8 *s '*re(tly rel te' 6*t% tr&st. 2% t *s 6%y St te $or' st te' t% t BCre'*t *s not%*n3 more t% n t% t of tr&st8. +y t%*s 6e ( n s y t% t (re'*t *s tool t% t *s res&lte' -y t%e (om/lete m&t& l tr&stCf *t%. BCre'*t (re t*on *m/l*es s*t& t*on 6%en - n. m y re(e*,e *nterest s*m/ly -y /erm*tt*n3 (&stomer to o,er'r 6 t%e*r ((o&nts or -y /&r(% s*n3 se(&r*t*es n' / y*n3 for t%em *ts o6n (%e;&e or - n. m y / y mo&nt to -orro6er or '*re(tly to seller of 3oo's 6%om 3 *nst -orro6er 3et mo&nt8. "R-!0$ & # *-&-#$ Cre'*t m n 3ement me ns t%e tot l /ro(ess of len'*n3 st rt from *n;&*ry from /otent* l -orro6er to re(o,er t%e len'*n3 mo&nt from -orro6er. G%ene,er my st&'y *s (on(ern, (re'*t m n 3ement *n sense of - n.*n3 se(tor *s t%e set of (t*,*t*es l*.e E:(e/t //l*( t*on, lo n //r *s l, S% .% /ost*n3, mon*tor*n3, re(o,ery, N!A m n 3ement, et(.

54R&S 45 "R-!0$9 !V #"-S Lo n <term lo n= C s% (re'*t n' o,er'r fts !&r(% se C'*s(o&nt*n3 of -*lls + n. 3& r ntee )oan/term loan In ( se of lo n s/e(*f*e' mo&nt *s s n(t*one' -y t%e - n.er to t%e (&stomer, 6%o m y e*t%er 'r 6 t%e mo&nt *n ( se *mme'* tely or m y l*.e t%e mo&nt to -e (re'*te' to %*s (&rrent ((o&nt. +&t le3 lly *t *s /res&me' t% t %e % s 6*t%'r 6n t%e mo&nt from t%e - n. n' 'e/os*te' *t *n %*s (&rrent ((o&nt. He *s re;&*re' to / y *nterest on t%e f&ll mo&nt from t%e ' te of s n(t*on. A lo n m y -e re/ y -le *n *nst llments or *n l&m/ s&m. Cash credit C s% (re'*t *s t%e m *n met%o' of len'*n3 *n In'* n' ((o&nts for -o,e E0F of tot l - n. (re'*t. 0n'er t%e system, t%e - n.er s/e(*f*es t%e l*m*t, ( lle' t%e ( s% (re'*t l*m*t for e (% (&stomer, &/ to 6%*(% t%e (&stomer *s /erm*tte' to -orro6er 3 *nst t%e se(&r*ty of t n3*-le ssets or 3& r ntees. 2%e (&stomer 6*t%'r 6s from %*s ( s% (re'*t ((o&nt s n' 6%en re;&*res t%e f&n's n' 'e/os*ts ny mo&nt of money, 6%*(% %e f*n's s&r/l&s 6*t% %*m on ny ' y. 2%e ( s% (re'*t mo&nt *s t%&s n (t*,e n' r&nn*n3 ((o&nt to 6%*(% 'e/os*ts n' 6*t%'r 6 ls m y -e ffe(te' fre;&ently. 2%e (&stomer *s re;&*re' to /ro,*'e t n3*-le ssets s se(&r*ty to (o,er t%e mo&nt -orro6e' from t%e - n.er. 2%e -orro6er *s (% r3e' *nterest on t%e (t& l mo&nt &t*l*5e' -y -orro6er n' for t%e /er*o' (t& lly &t*l*5e' only. !verdrafts G%en (&rrent mo&nt %ol'er *s /erm*tte' -y t%e - n.er to 'r 6 more t% n 6% t st n's to %*s (re'*t, s&(% n ', n(e *s ( lle' n o,er'r ft. 2%e - n.er m y t .e some (oll ter l se(&r*ty or m y 3r nt s&(% ', n(e on t%e /erson l se(&r*ty of t%e -orro6er. 2%e (&stomer *s /erm*tte' to 6*t%'r 6 t%e mo&nt s n' 6%en %e nee's *t n' to re/ y *t -y me ns of 'e/os*t *n %*s ((o&nt s n' 6%en *t *s fe s*-le for %*m. Interest *s (% r3e' on t%e e: (t mo&nt o,er'r 6n -y t%e (&stomer n' for t%e /er*o' of *ts (t& l &t*l*5 t*on

Bills Purchase 2%e + n.er (re'*ts (&stomer8s ((o&nt 6*t% t%e mo&nt of t%e -*ll fter 'e'&(t*on %*s (% r3es. As t%e 'em n' -*lls re re/ y -le on 'em n' n' t%ere *s no m t&r*ty, t%e - n.er *s ent*tle' to 'em n' t%e*r / yment *mme'* tely on /resent t*on -efore of 'r 6ee. 2%e*r /r (t*(e 'o/te' *n t%e ( se of 'em n' -*lls, *s .no6n s /&r(% se of t%e -*lls. Bills Discount In ( se of -*lls '*s(o&nt*n3, - n. (re'*ts t%e mo&nt of t%e -*ll to t%e 'r 6er8s ((o&nt -efore t%e re l*5 t*on of t%e -*ll n' t%&s len's *ts f&n's to %*m fter 'e'&(t*on %*s (% r3es. 2%e -*lls /&r(% se' n' -*lls '*s(o&nte' -y - n. re, t%erefore, s%o6n *n *ts - l n(e s%eet s / rt of lo ns n' ', n(es. In ( se of -*ll m t&r*n3 fter /er*o' of t*me m :*m&m for 180 ' ys *n 4#C+, t%e - n.er ret *ns t%e -*ll for t% t /er*o' n' re l*5es t%e mo&nt of -*ll from t%e 'r 6ee on *ts '&e ' te. 2%*s /r (t*(e *s ( lle' '*s(o&nt*n3 of t%e -*ll. Bank ,uarantee It *s (ontr (t to /erform t%e /rom*se or '*s(% r3e t%e l* -*l*ty of t%*r' /erson *n ( se of %*s 'ef &lt. In ( se of 3& r ntee, + n. *s t .*n3 res/ons*-*l*ty to / y t%e mo&nt to seller *f -&yer 6*ll not / y mo&nt *n t*me.

$0&- W0S- B05/R" $04# 45 !V #"-S 9 S%ort9term $*n n(e 9 Me'*&m9term $*n n(e 9 Lon39term $*n n(e ? 0/ to 21 mont%s ? 21 to 11 mont%s ? A-o,e 11 mont%s

S-"/R0$1 W0S- B05/R" $04# 45 !V #"-S Se(&re' $*n n(e C A', n(es? Se(&re' A', n(es re t%ose ', n(es, 6%*(% /ro,*'e -sol&te s fety to t%e + n.er -y me ns of (% r3e, (re te' on t%e t n3*-le ssets of t%e -orro6er *n f ,or of t%e + n.er. In (% r3e *s lo n or ', n(e m 'e on t%e se(&r*ty of s&(% ( ses, t%e + n.er 3ets (ert *n r*3%ts *n t%e t n3*-le ssets o,er 6%*(% (re te'. A Se(&re' Lo n or A', n(e me ns ', n(e. 0nse(&re' $*n n(e C A', n(es? 0nse(&re' Lo n or A', n(e me ns lo n or ', n(e, 6%*(% re not se(&re', t%*s ty/es of ', n(es *s not /refer -le for ny - n.*n3 *nst*t&t*ons.

ssets, t%e m r.et , l&e of 6%*(% *s not t ny t*me less t% n t%e mo&nt of s&(% lo n or

)R4"-SS 45 "R-!0$ A//l*( t*on *n6 r' S% .% re/ort A',o( te re/ort +r n(% re/ort Lo n re/ort Ins/e(t*on re/ort Comm*ttee re/ort $&lf*ll (on'*t*ons E;&*t -le mort3 3e n' e;&*t -le e:tens*on M .eCs*3n 'o(&ment O/en ((o&nt Ins&r n(e /ost*n3 4e(or' 'e/ rtment 9 f*l*n3 'n"ard application A (&stomer see.*n3 n ', n(e *s re;&*re' to s&-m*t n //ro/r* te //l*( t*on form. 2%ere re '*fferent ty/es of //l*( t*on forms for '*fferent ty/es of ', n(es , *l -le. 2%e *nform t*on f&rn*s%e' *n t%e //l*( t*on (o,ers, *nter l* s, t%e follo6*n3? n me n' ''ress of t%e -orro6er n' %*s est -l*s%ment, t%e 'et *ls of -orro6er8s -&s*ness, t%e n t&re n' mo&nt of se(&r*ty offere'. 2%e //l*( t*on form % s to -e s&//orte' -y , r*o&s n(*ll ry st tements l*.e t%e f*n n(* l st tements n' f*n n(* l /ro7e(t*ons of t%e f*rm. A se/ r te *n;&*ry 'e/ rtment *s set &n'er t%e lo n 'e/ rtment. Here, '*fferent ty/es of //l*( t*on forms re , *l -le n' (olle(t /ro(ess (% r3e from -orro6erL //l*( t*on *s ((e/te' n' entere' *nto (om/&ter. Shakh report 2%*s *s one of t%e str n3est f (*l*ty of 4#C+ (om/ re 6*t% ot%er (o9o/er t*,e - n.s *n 4 7.ot '*str*(t -e( &se of *ts (om/&ter*5 t*on. 2%*s f (*l*ty /ro,*'es - n. to tot l B kundali8 of t%e -orro6er rel te' to 'e l*n3 6*t% - n. not only s -orro6er -&t lso s / rtner, s '*re(tor lso s 3& r ntor n' s me 'et *l of t%e 3& r ntor lso n' lso -o&t ll t%e ty/es

of lo ns, 6%*(% re lre 'y / *' &/, 6%*(% re o,er'&e, 6%*(% re r&nn*n3 n' lso -o&t / st /erform n(e of / rt*(&l r. -dvocate report + n. t%ro&3% *ts le3 l 'e/ rtment8s st ff *n t6o m tters /re/ res ',o( te re/ort mostly, 6%*(% re 3*,en -elo6? In ( se of l n' n' -&*l'*n3 lo n +efore e;&*t -le of *mmo, -le /ro/erty s se(&r*ty G%en t%e - n. /re/ res ',o( te re/ort, - n. (% r3es some mo&nt from -orro6er. Branch turn over report 2%*s re/ort mostly /re/ re *n ( se of ( s% (re'*t re,*e6Crene6, *s lso .no6n s t&rn o,er re/ort. 2%*s re/ort /resents? !erform n(e of -orro6er 6*t% t%e -r n(% *n /re,*o&s ye r #e-*t9(re'*t tr ns (t*on of -orro6er, S&-m*ss*on of sto(. st tement, ! yment of *nterest L st o&tst n'*n3 - l n(e Processin# of application/loan report 2%e //l*( t*on *s /ro(esse' -y t%e (ler*( l st ff n' (%e(.e' n' / sse' -y sen*or lo n off*(er n' mon*tor*n3 -y lo n m n 3er. 2%e /rel*m*n ry *n,ol,es n e: m*n t*on of t%e follo6*n3 f (tors? A-*l*ty, *nte3r*ty, n' e:/er*en(e of t%e -orro6er *n t%e / rt*(&l r -&s*ness "ener l /ros/e(ts of t%e -orro6er8s -&s*ness !&r/ose of ', n(e 4e;&*rement of t%e -orro6er n' *ts re son -leness A'e;& (y of t%e m r3*n !ro,*s*on of se(&r*ty !er*o' of / yment An' /re/ re t%e //r *s l re/ort for (omm*ttee //ro, l -r n(%

'nspection report +efore /resent*n3 //r *s l re/ort 3 *nst t%e (omm*ttee, - n. sen's %*s f*el' off*(erC*ns/e(t*on off*(er to on s*te *ns/e(t*on. 2%e s*t& t*on 6%*(% (re te' -y -orro6er -y /ro,*'*n3 *nform t*on of %*s -&s*ness to - n. *s *t f (t or notM After t%e *ns/e(t*on re/ort, t%*s //l*( t*on *s re 'y for /&tt*n3 3 *nst t%e lo n (omm*ttee of t%e - n.. Ins/e(t*on , r*es ((or'*n3 to t%e , r*o&s lo ns. $or e.3. In ( se of ( s% (re'*t %e /erson lly ,*s*ts t%e -&s*ness s*te n' ,er*f*es t%e or*3*n l -oo.s of ((o&nts 6*t% t% t of s&-m*tte' -oo.s of ((o&nts. He ,er*f*es t%e re l sto(. 6*t% t%e sto(. ment*one' *f ny '*fferen(e *s fo&n' *t *s (le rly ment*one' *n t%e re/ort. In ( se of %o&s*n3 lo n *ns/e(t*on off*(er ,*s*ts t%e /l (e n' (%e(. 6%et%er t%e -&*l'*n3 *s re lly *n e:*sten(e or not, 6%et%er t%e (onstr&(t*on *s s /er t%e st t*( l f*3&re /ro,*'e' to %*m n' /l n *s s /er s n(t*one' -y t%e m&n*(*/ l (or/or t*on. Committee approval and terms and conditions On(e t%e //l*( t*on *s '&ly /ro(esse', *t *s /&t for s n(t*on to t%e //ro/r* te &t%or*ty. Here //ro/r* te &t%or*ty me ns , r*o&s lo n (omm*ttees, st n'*n3 (omm*ttee n' -o r' of '*re(tors. Lo n m n 3er *s s n(t*on*n3 &t%or*ty only *n ( se of re,*e6 of ( s% (re'*t f (*l*ty. 2y/es of (omm*ttee n' *ts len'*n3 /o6ers re 3*,en -elo6? If //ro/r* te &t%or*ty 3*,es s n(t*on, lon3 6*t% t%e s n(t*on of ', n(e t%e - n. s/e(*f*es t%e terms n' (on'*t*ons //l*( -le to t%e ', n(e. 2%ese &s& lly (o,er t%e follo6*n3s? 2%e mo&nt of lo n or m :*m&m l*m*t of t%e ', n(es 2%e n t&re of t%e ', n(es 2%e /er*o' for 6%*(% ', n(e *s , l*' 2%e r te of *nterest //l*( -le to t%e ', n(e 2%e /r*m ry se(&r*ty to -e (% r3e' 2%e *ns&r n(e of t%e se(&r*ty 2%e 'et *l of (oll ter l se(&r*ty, *f ny, to -e /ro,*'e' 2%e m r3*n to -e m *nt *n Ot%er restr*(t*ons or o-l*3 t*ons on t%e / rt of t%e -orro6er

Name !f Committee 1. +o r' of '*re(tors 2. St n'*n3 (omm*ttee 3. 4e(ons*'er t*on (omm*ttee 4. Lo n (omm*ttee <4s.D00001 to 1000000= D. Lo n (omm*ttee <4s.300001 to D00000= 1. Lo n s&-9(omm*tteeC1 <4s.1D0001 to 300000= E. Lo n s&-9(omm*tteeC2 <4s.ED001 to 1D0000= 8. Lo n s&-9(omm*tteeC3 <0/ to 4s.ED000= 9. Lo n s&-9(omm*tteeC4 <0/ to 4s.D,000= 10. Comm*ttee for lo n 3 *nst *mmo, -le /ro/ertyC1 <4s.2,D0,001 to D,00,000= 11. Comm*ttee for lo n 3 *nst *mmo, -le /ro/ertyC2 <4s.1,D0,001 to 2,D0,000= 12. Comm*ttee for lo n 3 *nst *mmo, -le /ro/ertyC3 <4s.2D,001 to 1,D0,000= 13. Comm*ttee for lo n 3 *nst *mmo, -le /ro/ertyC4 <0/ to 4s.2D,000= 14. 4e(o,ery (omm*tteeC1 <more t% n 4s.3,00,000= 1D. 4e(o,ery (omm*tteeC2 <4s.1,D0001 to 3,00,000= 11. 4e(o,ery (omm*tteeC3 <0/ to 4s.1,D0,000=

It *s (ommon - n.*n3 /r (t*(e to *n(or/or te *m/ort nt terms n' (on'*t*ons on #em n' /rom*ssory note Letter of 3& r ntee JA3reement letter <Letter of l*en= Letter of /le'3e Letter of (ont*n&*ty A3reement letter for C s% (re'*tCO,er'r ft 0/ to D,00,000 A-o,e D,00,000 ? 4s. 110 ? 4s. 2Ct%o&s n' 0/ to D,00,000 A-o,e D,00,000 ? 4s. 1 ? 4s. 10 ? 4s. D0 ? 4s. 2Ct%o&s n' ? 4s. D0 ? 4s. D0

st m/e'

se(&r*ty 'o(&ment to -e e:e(&te' -y t%e -orro6er. 4 te of st m/ '&t*es re 3*,en follo6s?

M :*m&m l*m*t of st m/ '&ty *s 4s. 2,00,000 JA3reement letter *s *n ( se of ,e%*(le lo n, se(&r*ty lo n, -*lls /&r(% se, -*lls '*s(o&nt*n3, 3& r ntee, e'&( t*on lo n, et(. .*uita le /ort#a#e -nd .*uita le .0tension G%en t%e lo n *s s n(t*one' 6*t% (on'*t*on t% t to /&t t%e re l 'o(&ment s Some t*me mort3 3e *n se(&r*ty </r*meC(oll ter l=, *t *s m&st t% t to m .e t%e e;&*t -le mort3 3e of t%e /ro/erty. /ro/erty 6%*(% 3*,en *n mort3 3e -y -orro6er *s lre 'y /&t -efore t%e - n. *n ( se of ot%er lo n s se(&r*ty t t% t t*me e;&*t -le mort3 3e *s lre 'y 'one -y / rty so t%ere *s no nee' of e;&*t -le mort3 3e 3 *n -&t t%e e;&*t -le e:tens*on *s only nee'e'. E;&*t -le mort3 3e on non97&'*(* l st m/ / /er -mount of sanctioned loan 0/ to 1D,00,000 A-o,e 1D,00,000 loan of non-1udicial stamp paper for e*uita le mort#a#e 1C2F of s n(t*one' lo n 1F of s n(t*one' lo n !$ 4s. 1,00,000 <G%*(%e,er *s less= /ake/si#n document

2%*s //l*( t*on *s no6 *n t%e 'o(&ment 'e/ rtment, 'o(&ment 'e/ rtment t .e s*3n t&re of lo nee n' 3& r ntors *n s/e(*men ( r' n' lso on t%e s n(t*on letter to se t -es*'e n' ,er*fy ll t%e 'o(&ments. 2y/es of 'o(&ments re '*s(&sse' *n e (% ty/e of lo n se/ r tely. 2%*s /ro(ess *s l st for -orro6er, fter t%*s lo n *s s n(t*one'. No form l*ty *s rem *n*n3 t t%e -orro6er s*'e. !pen account No6 lo n *s s n(t*one', ll form l*t*es re (om/lete'. So - n. *s 3*,*n3 yo&r mo&nt of lo n e*t%er -y (re'*te' *n yo&r ((o&nt or / y t%e mo&nt to t%e / rty, 6%ose ;&ot t*on *s /ro,*'e' -y -orro6er to - n.. + n. o/ens yo&r ((o&nt 6*t% %*mself to 3et t%e (t& l tr ns (t*on -et6een - n. n' -orro6er. 'nsurance postin# It *s m&st for lo nee to *ns&re t%e /ro/erty or e;&*/ment, 6%*(% *s %y/ot%e( te' 6*t% t%e - n. 3 *nst lo n s se(&r*ty. 2%*s /ol*(y *s ss*3ne' *n f ,or of - n., 6%*(% *s lso re;&*re'. In ( se of *mmo, -le /ro/erty or ne6 /&r(% se of m (%*nery, e;&*/ment, et(. *ns&r n(e of s me mo&nt n' *n ( se of ol' m (%*nery, 3oo's sto(., et(. t6*(e of t%e /r*(e *ns&r n(e *s nee'e'. In ( se of e'&( t*on lo n, t%e l*fe *ns&r n(e of st&'ent *s re;&*re'. S% .% 'e/ rtment *s /ost*n3 *t *n -orro6er8s ((o&nt. $ecord department 2 filin# No6 tot l /ro(ess *s o,er n' 6%ole 'o(&ments re nee' f*l*n3 for - n. re(or'. 4e(or' 'e/ rtment 'oes t%*s 6or.. 4e(or' 'e/ rtment f*le t%e 'o(&ments n' store *t to /ro/er /l (e.

0eneral .li'i)ility Criteria For Cre&it n RDC3 As /er t%e r&les of (o9o/er t*,es, ny one 6%o 6 nts to , *l f*n n(e % s to -e(ome mem-er of t%e - n.. As s% re%ol'er of t%e - n., %eCs%e % ,e to m .e (om/&lsory 'e/os*t, or t%e / yment of 'e/os*t s /er r&les n' re3&l t*ons of t%e - n. n' t%ere fter, %eCs%e ( n s&-m*t t%e //l*( t*on for lo n. In ll t%e /r (t*(e 6*t% t%e - n., yo& re .no6n -y - n. t%ro&3% yo&r (om/&lsory 'e/os*t n&m-er. 2%e //l*( t*on 6*ll % ,e to -e s&-m*tte' *n t%e /res(r*-e' form, 6%ere*n ll 'et *ls n' / rt*(&l rs 6*ll % ,e to -e f&rn*s%e' s 'em n'e' *n t%e form. HeCs%e % s to s&-m*t f&rt%er / rt*(&l rs s m y -e s.e' -y t%e - n.. 2%e lo nee 6*ll -e ', n(e' lo n 3 *nst t%e se(&r*ty n' %eCs%e % s to s&-m*t 1 or 2 3& r ntors, 6%o 6*ll -e t%e re(o3n*5e' mem-er n' ((e/te' to t%e - n.. 2%e *nterest 6*ll -e ( l(&l te' on mont%9to9mont% - s*s. 2 .*n3 *n ,*e6 t%e tot l mo&nt of lo ns t .en for '*fferent /&r/ose -y t%e f*rm or *n'*,*'& l, t%e *nterest 6*ll -e ( l(&l te' t t%e s me r te on ll t%e ', n(es. It 6*ll -e ne(ess ry to m .e / yment of s% re 'e/os*t or lo n 'e/os*t t t%e r te of 2.DF of t%e s n(t*on *n ( se of se(&re' lo n n' DF of s n(t*one' lo n or *n ( se of &nse(&re' lo n. 2%e m :*m&m s% re 'e/os*t ((e/te' of 4s.2D000 n' ''*t*on l 'e/os*t o,er 4s.2D000 6*ll -e ((e/te' s lo n 'e/os*t. 2%e r te of *nterest on s% re 'e/os*t *s 1DF n' t% t on lo n 'e/os*t *s 10F. 2%e (om/ ny, 6%o 6 nts to t .e lo n from - n., % s to 3et *ts n me re3*stere' for t%e s *' lo n /&r/ose 6*t% t%e re3*str r of (om/ n*es n' % s to s&-m*t t%e 'o(&ment of re3*str t*on (% r3e to t%e - n.. In ( se of mort3 3e of *mmo, -le /ro/erty ste/s re 3*,en -elo6? 2*tle (le r re/ort E;&*t -le mort3 3e on non97&'*(* l st m/ / /er -mount of sanctioned loan 0/ to 1D,00,000 A-o,e 1D,00,000 loan of non-1udicial stamp paper for e*uita le mort#a#e 1C2F of s n(t*one' lo n 1F of s n(t*one' lo n !$ 4s.1,00,000 <G%*(%e,er *s less=

 Some t*me /ro/erty 6%*(% 3*,en *n mort3 3e -y -orro6er *s lre 'y /&t -efore t%e - n. *n ( se of ot%er lo n s e:tens*on *s only nee'e'. In ( se of *mmo, -le /ro/erty or ne6 /&r(% se of m (%*nery, e;&*/ment, et(. *ns&r n(e of s me mo&nt n' *n ( se of ol' m (%*nery, 3oo's sto(., et(. t6*(e of t%e /r*(e *ns&r n(e *s nee'e'. In ( se of e'&( t*on lo n, t%e l*fe *ns&r n(e of st&'ent *s re;&*re'. M r3*n money me ns 3 / -et6een /&r(% se , l&e n' - n. f*n n(e. + n. l6 ys 'oes / yment '*re(tly to t%e seller. So lo nee % s to 'e/os*t t%e m r3*n money *n t%e - n.. se(&r*ty t t% t t*me e;&*t -le mort3 3e *s lre 'y 'one -y / rty so t%ere *s no nee' of e;&*t -le mort3 3e 3 *n -&t t%e e;&*t -le

'N(.$.S( $-(. !N 3-$'!US -D3-NC.S

)articulars
0/ to 2D000<e:(e/t ,e%*(le lo n= 0/ to 2D000 ,e%*(le lo n 2D001 to 200000 200001 to 1000000 A-o,e 1000000 S&rety lo n, %ome //l* n(es "ol' lo n L n' n' -&*l'*n3 <&nse(&re'= &/ to 2D000 St ff s&rety lo n Lo n 3 *nst f*:e' 'e/os*t

0nterest rate 12F 14F 14F 1DF 11F 11F 14F 11F 11F More t% n 2F of $.#. 14F

0nstallment 9 Rs.:;;; 32 32 32 23 23 32 D0 32 23

#umber of installment 40 40 40 11 11 40 21 40 11 2*ll t%e m t&r*ty ' te of $.#.

+&*l'*n3 re/ *r*n3 &/ to ED000 +&*l'*n3 /&r(% se, (onstr&(t*on ED001 to 200000 200001 to1000000

1E

108

14F 1DF

1E 1E

108 108

Scrutiny of credit G%*le s(r&t*n*5*n3 n //l*( t*on from t%e - n. t .es *nto (ons*'er t*on9s fety, l*;&*'*ty, /&r/ose /rof*t -*l*ty, se(&r*ty, n' s/re ' of ', n(es. Safety + n. % s to see t% t t%e /ros/e(t*,e -orro6er *s money *s s fe *n %*s % n's. )i*uidity + n. % s to f*n' o&t t% t t%e -orro6er *s ;&*te ( / -le *n re/ y*n3 t%e f*n n(e 6*t%*n re son -le /er*o'. Purpose 2%e /&r/ose for t%e f*n n(e s%o&l' not -e *lle3 l. It s%o&l' -e (re t*,e, ser,*(e or*ente', 'e,elo/ment or*ente', n' l*.e. + n.s s%o&l' (%e(. en' &se of f&n's. Profita ility If t%e /ro7e(t or t%e /&r/ose of t%e f*n n(e *s not /rof*t -le *n t%e % n's of t%e -orro6er t% n %e 6*ll not -e *n /os*t*on of re/ y*n3 t%e mo&nt to - n.. It s%o&l' -e /rof*t -le eno&3% to 3ener te t%e *n(ome to s t*sfy %*s nee's n' - n.8s '&es. Security 2%e - n. % s to t .e *nto (ons*'er t*on t%e (% r (ter, ( / (*ty, se(&r*ty o,er n' -o,e /r*me se(&r*ty. Spread of advances $or % ,*n3 - l n(e' e(onomy t%e - n. s%o&l' (%oose to s/re ' t%e f*n n(e mon3st , r*o&s se(tors of t%e so(*ety, so t% t t%e r*s. of *n(om*n3 - ' ', n(es *s m*n*m*5e'. Con(entr t*on on one ty/e of ', n(es m y t&rn *nto - ' ', n(es *f t%e s(%eme -e(omes *neffe(t*,e '&e to some n t&r l ( l m*t*es or 3o,ernment r&les or (% n3e *n t ste or 'em n's of t%e so(*ety, -y n' l r3e. n' ( /*t l of t%e /ros/e(t*,e -orro6er. +*33er ', n(es n' ( s% (re'*t re to -e se(&re' 6*t% (oll ter l rel* -le &ser of t%e f*n n(e n' - n.8s

$1)-S 45 "R-!0$ S&rety Lo n )e%*(le Lo n Se(&r*ty Lo n #omest*( A//l* n(es Lo n "ol' Lo n L n' An' +&*l'*n3 Lo nCIn'&str* l +&*l'*n3 Lo n E'&( t*on l Lo n $.#. Lo n C s% Cre'*t O,er'r ft + n. -le Lo n +*lls !&r(% se +*lls #*s(o&nt*n3 + n. "& r ntee St ff Lo ns St ff S&rety Lo n St ff Ho&s*n3 Lo n St ff )e%*(le Lo n

-.)' # $04# 45 '' $1)-R 45 "R-!0$ Surety 'oan !&r/ose L*m*t !er*o' 4e/ y -le Se(&r*ty #o(&ments S&-m*t ! /er Ot%er terms N F of t%e lo n mo&nt *f t%e lo n *s s n(t*one' to t%e t&ne of 4s. D000 n' 1F of t%e lo n mo&nt *s s n(t*one' to t%e t&ne of 4s. 10000 6*ll % ,e to -e 'e/os*te' *n t%e -enef*t f&n'. 0n'er t%e -o,e s(%eme, *f t%e 'e t% of t%e lo nee &n'er s&rety lo n o((&rs, *n t%e s *' (*r(&mst n(es, *n rem *n*n3 lo n *n %*s ((o&nt 6*ll -e (re'*te' from t%*s ((o&nt &n'er %*s lo n ((o&nt n' n mo&nt of 4s. 1000, s Ass*st n(e 6*ll -e / *' to t%e %e*rs of t%e lo nee *mme'* tely from t%*s f&n' 2%e (onf*rme' 3o,ernment em/loyee ( n -e 3r nte' s l ry e,ery mont% re3&l rly n' rem*t t%e s me to + n.. It *s not //l*( -le t% t t%e s&rety lo n of ot%er (o9o/er t*,e so(*ety *s *n /resen(e. lo n of 4s. 10000 on ((e/t n(e letter t .en from %*s em/loyer to t%e effe(t t% t t%ey 6*ll 'e'&(t t%e *nst llment from %*s !erson l &se 4s. D000 to 10000 40 mont%s E;& te Mont%ly *nst llments 4s.32 /er t%o&s n' !erson l "& r ntee of t6o mem-ers of t%e - n. Lo n A//l* n(es form, Letter of 3& r ntee, #! note, letter of S n(t*on. In ( se of ser,*(e /erson / y slee/, *n ( se of -&s*ness/erson l st ye rly -&s*ness re/ort.

4 te of *nterest 11F

Security 'oan 7 6ainst &achinery95urniture < 5i=tures9->ui%ments= !&r/ose L*m*t M r3*n $or /&r(% s*n3 NEGCOL# m (%*ner*esCf&rn*t&re for -&s*ness /&r/ose Any l*m*t s /er re;&*rement 2DF to 40F 2D001 to 200000 14F Security 'oan 7 6ainst *ood Stock8

4 te of *nterest 0/ to 2D000 12F,

!&r/ose L*m*t M r3*n

!ro,*'e lo n 3 *nst 3oo' sto(. Any l*m*t s /er re;&*rement 40F 2D001 to 200000 14F, 200001 to 1000000 1DF, A-o,e 1000000 11F

4 te of *nterest 0/ to 2D000 12F,

!er*o' 4e/ y -le Se(&r*ty

40 mont%s &/ to 200000, 11 mont%s -o,e 200000 E;& te Mont%ly *nst llments 4s.32 /er t%o&s n' &/ to 4s.200000, *n ( se of more t% n 200000 4s. 23 /er t%o&s n' 2%e Hy/ot%e( t*on of 3oo's /&r(% se' s se(&r*ty <A= E;&*t -le mort3 3e of l n' n' -&*l'*n3 <+= "& r ntee of t6o mem-ers of t%e - n. s 3& r ntors. /r*me se(&r*ty, As Coll ter l

#o(&ments

Lo n A//l* n(es form, Letter of 3& r ntee, #! note, Hy/ot%e( t*on of 3oo's, *ns&r n(e /ol*(y, letter of s n(t*on, e;&*t -le mort3 3e of l n' n' -&*l'*n3

S&-m*t ! /er

L st t%ree9ye r -&s*ness re/ort, S%o/ A(t L*(ense, SSI l*(ense, Ele(. Conne(t*on /roof, I2 4et&rn, 4ent re(e*/t If //l*( nt *s ! rtners%*/ $*rm ! rtners%*/ 'ee' (o/y, 4e3., of f*rms, If //l*( nt *s l*m*te' (om/ ny 4esol&t*on for 3ett*n3 lo n, Memor n'&m of sso(* t*on, Art*(les of sso(* t*on, letter of ss&r n(e for re3*str t*on *n 4e3. of Com/ n*es

Ot%er terms 2%e / yment of t%*s .*n' of lo n *s 3*,en to t%e lo nee -y + n.. Ins&r n(e *s t6*(e of t%e , l&e of 3oo's /r*(e, *s re;&*re' to t%e t .en o&t from t%e *ns&r n(e (om/ ny re(o3n*5e' -y - n. n' t%e s *' *ns&r n(e /ol*(y *s re;&*re' to -e re(o3n*5e' *n f ,or of t%e - n.. 2%e *mmo, -le /ro/erty of e*t%er lo nee of 3& r ntor 6*ll % ,e to -e ss*3ne' s (oll ter l se(&r*ty to t%e - n..

'and nd Buildin6 9 0ndustrial Buildin6 'oan !&r/ose L*m*t $or /&r(% se or (onstr&(t*on or re/ *r*n3 of *mmo, -le /ro/erty 4s. 1000000 or , l&e of t%e /ro/erty 6%*(% e,er *s less *n ( se of se(&re' lo n for %o&s*n3 /&r(% se or (onstr&(t*on $or *n'&str* l /&r/ose s /er re;&*rement 4s. ED000 M :*m&m <*n ( se of se(&re' lo n re/ *r*n3 of %o&se /ro/erty= 4s. ED000 M :*m&m <l n' less t% n D0 y r's *n ( se of /&r(% se= 4s. 40000 M :*m&m <re/ *r*n3 of -&*l'*n3 n' less t% n D0 y r's= 4s. 2D000 M :*m&m <*n ( se of &nse(&re' lo n for re/ *r*n3 of %o&se /ro/erty= M r3*n 30F <*n ( se of se(&re' lo n for re/ *r*n3 of %o&se /ro/erty= 1D F< se(&re' lo n </&r(% se C(onstr&(t*on== 14F <%o&s*n3 re/ *r*n3 <se(&re' lo n== !er*o' 4e/ y -le Se(&r*ty #o(&ments 40 mont%s <&nse(&re' lo n= 108 mont%s <se(&re' lo n </&r(% se C (onstr&(t*on= C re/ *r*n3=. E;& te Mont%ly *nst llments 4s.32 <&nse(&re' lo n re/ *r*n3= 4s. 1E <se(&re' lo n </&r(% seC(onstr&(t*onCre/ *r*n3= /er t%o&s n'. E;&*t -le mort3 3e of /ro/erty, t6o 3& r ntor8s 3& r ntee Or*3*n l Le.%, (ert*f*e' (o/y of se;&ent* l 'o(&ment of t%e /ro/erty, lo n //l*( t*on S&-m*t ! /er form, letter of 3& r ntee, e;&*t -le mort3 3e of /ro/ertyC*n'emn*ty +on', *ns&r n(e /ol*(y, letter of s n(t*on L st t%ree9ye r -&s*ness re/ort, s%o/ A(t L*(ense, I2 4et&rn, <In ( se of ne6 /ro7e(t, /ro7e(t re/ort=, //ro,e' /l n n' est*m te. If //l*( nt *s / rtners%*/ $*rm ! rtners%*/ 'ee' Co/y, 4e3. of f*rms If //l*( nt *s l*m*te' (om/ ny 4esol&t*on for 3ett*n3 lo n, Memor n'&m of sso(* t*on, Art*(les of sso(* t*on, letter of ss&r n(e for re3*str t*on *n 4e3. of Com/ n*es Ot%er terms 4 te of *nterest 11F <&nse(&re' lo n= n' ED001 to 200000 14F n' 200001 to 1000000

Lo nee *s re;&*re' to / y t%e 'o(&ment *ns/e(t*on n' ',o( te fee lon3 6*t% /ro(ess (% r3e s /er t%e r te t*me9t*me 'e(*'e' -y t%e - n.. In ( se of se(&re' lo n, 6%en t%e lo n *s 3*,en for /&r(% se of (onstr&(t*on of t%e *mmo, -le /ro/erty, t%e f&ll *ns&r n(e of t%e , l&e of (onstr&(t*on *s re;&*re' to -e t .en o&t. In ( se of (oll ter l of &nse(&re' lo n, t%e *ns&r n(e of 'o&-le t%e , l&e of t%e s n(t*one' lo n *s re;&*re' to -e t .en o&t from t%e *ns&r n(e (om/ ny re(o3n*5e' -y t%e - n.. 2%e *ns&r n(e /ol*(y *s re;&*re' to t%e ss*3ne' to t%e - n.. In ( se of &nse(&re' lo n, t%e //l*( nt % s to s&-m*t t%e or*3*n l 'o(&ment s%o6*n3 t%e o6ners%*/ of t%e *mmo, -le /ro/erty. $or t%*s ty/e of lo n, no *ns*sten(e *s 3*,en for t*tle (le r n(e. +&t t%e //l*( nt % s to s&-m*t In'emn*ty +on' on st m/ / /er of 1D0 6%ene,er t%e 'em n' of - n. n' ne(ess ry s /er t%e ',*(e of t%e le3 l ret *ner of t%e - n.. 2%e *ns&r n(e for t%e , l&e of -&*l'*n3 6*ll % ,e to -e t .en o,er n' t%e *ns&r n(e /ol*(y 6*ll % ,e to -e ss*3ne' to t%e - n..

"onstruction 'evel nd mount )assin6 Slab "hart NO. O$ INS2ALME N2 1 2 3 4 !A42IC0L A4 !l*nt% le,el L*ntel le,el Sl 0!2O "4O0N# $LOO4 20F 20F 30F 0!2O 1St. $LOO4 20F 20F 10F 10F 10F 20F 0!2O 2 N# $LOO4 20F 20F 10F 10F 10F 20F

!l ster, t*les, 20F ele(tr*(, !l&m-*n3 Com/let*on

D Vehicle 'oan

10F

10F

10F

!&r/ose L*m*t M r3*n OL# KIN# O$ )EHICLE 2r&(., 2r (tor M t 'or

!&r(% se of ne6 t6o 6%eelerC/&r(% se of fo&r 6%eeler ol'Cne6 As /er 'em n' 2DF <*n ( se of ne6 ,e%*(le /&r(% se= IEA4 OL# MO#EL 2 ye rs 394 ye rs D ye rs 19E ye rs 8910 ye rs 1191D ye rs 10 ye rs 1191D ye rs D ye rs 191D ye rs F O$ )AL0A2ION O$ )EHICLE !ASSE# 10F DDF D0F 40F 30F 2DF D0F 30F 10F D0F

!etrol Motor #*esel motor

J) l& t*on -y - n. re(o3n*5e' , l&er !er*o' 40 mont%s &/ to 200000, 11 mont%s -o,e 200000 200001 to 1000000 1DF A-o,e 1000000 11F 4e/ y -le Se(&r*ty #o(&ments E;& te' mont%ly *nst llments 4s. 32 &/ to 200000 4s. 23 more t% n 200000 /er t%o&s n' Hy/ot%e( t*on of t%e ,e%*(le, t6o 3& r ntor8s 3& r ntee s se(&r*ty *mmo, -le /ro/erty of lo nee or 3& r ntor Co/y of re3*str t*on of ,e%*(le *n 42O *n / rt*(&l r (*ty, H*3%er /&r(% se 3reement *n f ,or of - n., lo n mort3 3e or e:tens*on of /ro/erty S&-m*t ! /er Ot%er terms In ( se of ser,*(e /erson / y slee/, *n ( se of -&s*ness/erson l st ye rly -&s*ness re/ort, I2 ret&rn, O&ot t*on of ,e%*(le //l*( t*on form, )e%*(le 'e ler8s 3& r ntee letter, #! note, letter of s n(t*on, *ns&r n(e /ol*(y, e;&*t -le (oll ter l

4 te of *nterest 2D001 to 200000 14F

It *s ne(ess ry to t .e f&ll (om/re%ens*,e *ns&r n(e for t%e ,e%*(le, for 6%*(% t%e %*3%er /&r(% se 3reement *s 'one *n f ,or of t%e - n.. 2%e -o,e *ns&r n(e 6*ll % ,e to -e t .en from t%e *ns&r n(e (om/ ny re(o3n*5e' -y - n. n' 6*ll % ,e ss*3n *n f ,or of t%e - n.. + n. s% ll m .e '*re(t / yment to t%e 'e lerCseller. In ( se of se(on' % n' ,e%*(le, ne(ess ry , l& t*on re/ort from s&-m*tte' to t%e - n.. *old 'oan !&r/ose L*m*t !er*o' 4e/ y -le Se(&r*ty #o(&ments S&-m*t ! /er Ot%er terms 2%*s .*n' of lo n *s 3*,en on t%e re9/le'3e of orn ments or *tems of 3ol'9s*l,er. 2%*s .*n' of lo n *s not , *l -le to t%e mer(% nts of 3ol'9s*l,er for t%e /&r/ose of -&y*n3 sell*n3. 2%*s .*n' of lo n ( n -e 3*,en to t%e mem-er of t%e - n., -&t t%*s .*n' of lo n ( n lso -e 3*,en to t%e non9mem-er, t .*n3 4s. D s 'm*ss*on fee n' 3*,*n3 nom*n l mem-ers%*/ for t%e lo n only. 2%e /&r*ty of t%e orn ments or *tems of "ol', 6%*(% *s 3*,en on re9!le'3e, s%o&l' -e m*n*m&m 21 C rets. $or t%e /&r/ose of t%*s .*n' of lo n t%e - n. s% ll //o*nt one or more 3ol'sm*t%s, 6%o 6*ll m .e , l& t*on of t%e orn ments or *tems of 3ol'9s*l,er n' t%e lo nee % s to ((e/t %*s 'e(*s*on rr*,e' t on t%e - s*s of t%e .*n'C6e*3%t et(. of 3ol'9s*l,er orn ments or *tems. !er 11.114 "r m <!er 2OLA= 4s. 3000 *s ) l&e' > E0 F ) l&e' Amo&nt *s S n(t*one' s Lo n. Bankable 'oan !erson l &se 4s. D0000 <*n 4 7.ot (*ty= 20000 <o&t of 4 7.ot= 21 mont%s E;& te' mont%ly *nst llments 4s. D0 /er t%o&s n'. "ol' s*l,er orn ments or *tems on 4e9/le'3e Lo n //l*( t*on form, #! note In ( se of ser,*(e /erson / y slee/, *n ( se of -&s*ness/erson l st ye rly -&s*ness re/ort re(o3n*5e' , l&er to -e

4 te of *nterest 14F

!&r/ose L*m*t M r3*n !er*o'

2o ss*st t%e sm ll s( le *n'&stry 4s 200000 2DF to 40F 40 mont%s 2D001 to 200000 14F

4 te of *nterest 0/ to 2D000 12F 4e/ y -le Se(&r*ty E;& te' mont%ly *nst llments of 32 4s. !er t%o&s n' As (oll ter l se(&r*ty %o&se /ro/erty of lo nee or 3& r ntor or f*:e' mort3 3e E0F of s n(t*one' 'e/os*ts or n t*on l s ,*n3 (ert*f*( tes s lo n, 3& r ntee of t6o 3& r ntors #o(&ments S&-m*t ! /er E;&*t -le mort3 3e of /ro/erty, lo n //l*( t*on form, letter of 3& r ntee, #! note, letter of s n(t*on, *ns&r n(e /ol*(y S%o/ A(t L*(ense, SSI l*(ense, Ele(. Conne(t*on /roof, 4ent re(e*/t, /ro7e(t re/ort Ot%er terms 2%*s lo n *s s n(t*one' on t%e re(ommen' t*on of '*str*(t *n'&str* l (enter fter se(&r*ty n' t .*n3 *n ,*e6 t%e , l&e of se(&r*ty 3*,en 3 *nst lo n n' / rt*(&l rs of 3& r ntor. Amo&nt of s&-s*'y 3*,en n' s n(t*one' to t%e //l*( t*on *s (re'*t *n %*s lo n ((o&nt. 2%e / yment e:(e/t mo&nt, 6%*(% *s s n(t*one' 3 *nst 6or.*n3 ( /*t l, of t%*s lo n *s m 'e '*re(tly to t%e / rty, 6%o % s 3*,en t%e ;&ot t*on. $y%e of business 2r '*n3 f*rm Ser,*(e se(tor M n&f (t&r*n3 f*rm 4ver !raft !&r/ose L*m*t M r3*n !er*o' 2o f&lf*ll t%e nee' of 6or.*n3 ( /*t l of -&s*ness As /er re;&*rement 40F 0/ to 1 ye r condition of subsidy ED00 or 10F of lo n mo&nt 6%*(%e,er *s less 10000 of 10F of lo n mo&nt 6%*(%e,er *s less 20000 or 10F of lo n mo&nt 6%*(%e,er *s less

4 te of *nterest 0/ to 2D000 12F 2D001 to 200000 14F 20001 to 1000000 1DF A-o,e 1000000 11F 4e/ y -le 2%e (&stomer *s /erm*tte' to 6*t%'r 6 t%e mo&nt s n' 6%en %e nee's *t n' to re/ y *t -y me ns of 'e/os*t *n %*s ((o&nt s n' 6%en *t *s fe s*-le for %*m Se(&r*ty #o(&ments S&-m*t / /er Hy/ot%e( t*on of 3oo's sto(. 3& r ntee of t6o 3& r ntors O,er'r ft //l*( t*on form, letter of 3& r ntee, e;&*t -le mort3 3e of /ro/erty, #! note, letter of (ont*n&*ty, letter of s n(t*on, *ns&r n(e /ol*(y L st t%ree9ye r -&s*ness re/ort, rent re(e*/t, I2 ret&rn, s%o/ (t l*(ense n' or e;&*t -le mort3 3e of /ro/erty

"ash credit 76ood stock8 !&r/ose L*m*t M r3*n !er*o' 2o meet t%e nee' of 6or.*n3 ( /*t l -&s*ness &n*t As /er re;&*re 40F 12 mont% <to -e re,*e6e' e,ery ye r n' rene6e' e,ery t%ree ye r= 1DF, -o,e 10,00,000 11F 4e/ y -le 2%e (&stomer *s /erm*tte' to 6*t%'r 6 t%e mo&nt s n' 6%en %e nee' *t n' to re/ y *t -y me ns of 'e/os*t *n %*s ((o&nt s n' 6%en *t *s fe s*-le for %*m Se(&r*ty = s /r*me se(&r*ty %y/ot%e( t*on of 3oo's sto(. -= As (oll ter l se(&r*ty m (%*nery, f&rn*t&re e;&*/ment, f*:e' 'e/os*t, n t*on l s ,*n3 (ert*f*( te, e;&*t -le mort3 3e of *mmo, -le /ro/erty (= "& r ntee of t6o 3& r ntors #o(&ment C s% Cre'*t A//l*( t*on $orm, A3reement Letter, E;&*t -le Mort3 3e of !ro/erty, Letter Of S n(t*on, Letter Of Cont*n&*ty, #! note, %y/ot%e( t*on of 3oo's, Ins&r n(e !ol*(y

4 te of *nterest 0/ to 4s. 2D000C9 12F, 2D001 to 2,00,000 14F, 2,00,001 to 10,00,000

S&-m*t / /er

L st t%ree ye r +&s*ness 4e/ort, S%o/ A(t L*(ense, SSI L*(ense, ele(tr*(*ty (onne(t*on /roof, I2 ret&rn, rent re(e*/t If //l*( nt *s / rtners%*/ f*rm ! rtners%*/ 'ee' (o/y, 4e3. of f*rms If //l*( nt *s l*m*te' (om/ ny 4esol&t*on for 3ett*n3 lo n, memor n'&m of sso(* t*on, rt*(les of t%e sso(* t*on, letter of ss&r n(e for re3*str t*on *n re3. of (om/ n*es

Ot%er terms Lo nee % s to s&-m*t t%e sto(. st tement to t%e - n. e,ery mont% re3&l rly. Lo nee % s to s&-m*t t%e - l n(e s%eet, /rof*t n' loss ((o&nt e,ery ye r. Lo nee % s to s&-m*t t%e (o/y of *n(ome t : ret&rn or *n(ome t : ssessment or'er e,ery ye r. In t%e ( s% (re'*t ((o&nt f (*l*ty, t%e t&rn o,er 6*ll to -e 'one t%r*(e of t%e s n(t*one' f (*l*ty 6*t%*n 1 mont% n' t%e s me 6*ll % ,e to -e 'one f*,e t*mes of t%e s n(t*one' f (*l*ty 6*t%*n one ye r. 2%e *ns&r n(e for t6*(e t%e , l&e of s n(t*one' ( s% (re'*t 6*ll % ,e to -e t .en o,er n' t%e *ns&r n(e /ol*(y 6*ll % ,e to -e ss*3ne' to t%e - n.. In ( se of ( s% (re'*t t%e f (*l*ty ( n -e , *le' m *nt *n*n3 t%e 3oo's sto(. m r3*n. S le of 3oo's n' mo&nt of re(o,ery ( nnot -e set off, -&t t%e s me s%o&l' -e (re'*te' *n t%e - n. n' t%e mo&nt of / yment s%o&l' -e m 'e -y - n. (%e;&e ll t%e -&s*ness tr ns (t*on s%o&l' -e m 'e t%ro&3% - n.. As /er t%e norms of t%e reser,e - n. of In'* , ((o&nt t t*me 6*t% t6o '*fferent - n.s. -orro6er ( nnot o/er te t6o ( s% (re'*t

-ducation 'oan !&r/ose 2%*s .*n' of lo n *s 3*,en to t%e -r*ll* nt st&'ents, 6%o 'o not f&rt%er t%e*r st&'y -e( &se of / &(*ty of f*n n(e, 6*t% for e'&( t*on /&r/ose L*m*t M r3*n = St&'y *n In'* 0/ to 2D,000 ? 4s. 1,D0,000 ? n*l -= St&'y *n -ro ' ? 4s. 2,00,000 2D,001 to 1,D0,000 ? 1DF 2D,000 to 2,00,000 ? 2DF 4 te of *nterest 14F 4e/ y -le Se(&r*ty #o(&ment E;& tes mont%ly *nst llments of 4s. 32 /er t%o&s n' E;&*t -le mort3 3e of /ro/erty, 3& r ntee of t6o 3& r ntors Lo n //l*( t*on form, E;&*t -le Mort3 3e Of !ro/erty, Letter Of S n(t*on, Letter Of (ont*n&*ty, (ont*n&*ty se(&r*ty letter, #! note, Ins&r n(e !ol*(y of st&'ent, 6%*(% *s ss*3ne' *n f ,or of - n., letter of l*en n' set off, letter of 3& r ntee, st m/ //l*( t*on (&m 3reement form S&-m*t / /er Ot%er terms Interest *s re;&*re' to -e / *' e,ery mont% 2%e lo n ( n -e s n(t*one' .ee/*n3 *n ,*e6 t%e lo nee8s re/ y*n3 ( / (*ty Com/&lsory f*rst (l ss *n e,ery *m/ort nt e: m*n t*on Lo nee *s t% t 6%o % s /ro/erty on %*s o6n n me. St&'ent % s to 7o*n s (o9lo nee. 2%e *nst llment of lo n 6*ll -e st te' fter 1 mont%s of t%e (om/let*on of st&'y 5i=ed de%osit loan !&r/ose L*m*t M r3*n !er*o' 2o 3r nt lo n C o,er'r ft to n *n'*,*'& l or f*rm 3 *nst $.#.4. As /er re;&*rement D0 F or less 2*ll '&e ' te of $.#.4. In ( se of ser,*(e /erson / y slee/, *n ( se of -&s*ness/erson l st ye rly -&s*ness re/ort, t6o /%oto3r /% of st&'ent ,*e6 to -&*l'*n3 t%e*r ( reer. 2%e - n. *s 3*,*n3 lo n to (oo/er te n' to 3*,e ss*st n(e to s&(% st&'ents

4 te of *nterest 2 F more t% n $.#.4.

Se(&r*ty #o(&ments Ot%er terms

#&ly '*s(% r3e $.#.4. #! note, '&ly '*s(% r3e $.#.4., form of //l*( t*on L*en s%o&l' -e note' *n t%e $#4 ((o&nt n' on t%e - (. of t%e $.#.4. '&ly '*s(% r3e'

Bills %urchase !&r/ose L*m*t M r3*n !er*o' C% r3es #o(&ments 2o ss*st t%e (&stomer for t%e*r s%ort9term nee' of 6or.*n3 ( /*t l As re;&*re' -y //l*( nt "ener lly 2D F A(t& l re l*5 t*on /er*o' 2 -le *s 3*,en #! note, letter of 3& r ntee, letter of (ont*n&*ty, 3reement letter

4 te of *nterest 18 F /er nn&m

Bills !iscountin6 !&r/ose L*m*t M r3*n !er*o' #o(&ments C% r3es Ot%er terms 2o ss*st t%e (&stomer to /ro,*'e t%em 6or.*n3 ( /*t l 3 *nst %*s /ost9 ' te' re(e*,e' -*lls As /er re;&*re' -y //l*( nt "ener lly 2D F M :*m&m 180 ' ys Letter of -*lls '*s(o&nt*n3 &n'ert .*n3, #! note, letter of 3& r ntee, letter of (ont*n&*ty, 3reement letter 2 -le *s 3*,en Interest to -e (o,ere' *n ', n(e

4 te of *nterest 18 F /er nn&m

"ollection 4f "he>ues 74.B.".8 Amo&nt Of C%e;&es 0/ to 4s. D000C9 Lo( t*on L*ste' A-o,e 4s. 10.00 All Ot%er Lo( t*on Colle(t*n3 + n.s Comm*ss*on P 4s.10 $rom 4s. D001 to 10000 4s. 1D.00 !ost 3e C% r3e Colle(t*n3 + n.s Comm*ss*on P 4s.10 $rom 4s. 10001 to 1 L ( 4s. 1.D0 C 1000 !ost 3e C% r3e Colle(t*n3 + n.s Comm*ss*on P 4s.10 $or 4s. A-o,e 1 L ( 4s. 1.D0 C 1000 !ost 3e C% r3e Colle(t*n3 + n.s Comm*ss*on P 4s.10 !ost 3e C% r3e

"ollection 4f Bills 70.B."8 Amo&nt Of +*ll 0/ to 4s.1000 Lo( t*on L*ste' A-o,e 4s, 10.00 All Ot%er Lo( t*on Colle(t*n3 + n.s Comm*ss*on P 4s.10 $rom 4s. 1001 to D000 4s. 1D.00 !ost 3e C% r3e Colle(t*n3 + n.s Comm*ss*on P 4s.10 $rom 4s. D001 to 10000 4s. 2D.00 !ost 3e C% r3e Colle(t*n3 + n.s Comm*ss*on P 4s.10 $rom 4s. 10001 to 1 L ( 4s. 3.00 C 1000 !ost 3e C% r3e Colle(t*n3 + n.s Comm*ss*on P 4s.1D $or 4s. A-o,e 1 L ( 4s, 3.00 C 1000 !ost 3e C% r3e Colle(t*n3 + n.s Comm*ss*on P 4s.1D !ost 3e C% r3e Bank 6uarantee? 1= Performance #uarantee 2%*s ty/e of 3& r ntee 'oes not *n,ol,e f*n n(* l o-l*3 t*on It *n,ol,es /erform n(e 6*t% re3 r' to (onstr&(t*on of -&*l'*n3, *nst ll t*on of /l nt n' m (%*ner*es 6*t%*n 3*,en t*me fr me n' 6*t% 3ree' s/e(*f*( t*ons !erform n(e rel t*n3 to s&//ly of m ter* ls s /er 3ree' terms n' (on'*t*ons "& r ntees m y -e 3*,en to se(&re ', n(e' / yment, *n /l (e of se(&r*ty 'e/os*t C e rnest money 'e/os*t C ten'er money 'e/os*t et(. !erform n(e of ny ot%er 6or. (ontr (t !erform n(e of /l nt C m (%*nery &/ to 3ree' le,el ( / (*t*es

2= +inancial #uarantee 2%ese 3& r ntees re 3*,en for meet*n3 6*t% f*n n(* l o-l*3 t*ons

!&r/ose L*m*t M r3*n !er*o' Comm*ss*on C% r3es Se(&r*ty #o(&ments

2o ss*st t%e -&s*ness As re;&*re' -y //l*( nt C s% m r3*n <m*n*m&m 2D F= -y 6 y of $.#.4. E;&*t -le mort3 3e <rest of t%e / rt= "ener lly 12 mont%s 1F /er nn&m *n ( se of 100F ( s% m r3*n 2F /er nn&m *n ot%er ( ses 0.1F <&/front= $.#.4. '&ly '*s(% r3e', e;&*t -le mort3 3e of /ro/erty A//l*( t*on form, (o&nter 3& r ntee

!ifferent ty%es of staff loans

Staff surety loan !&r/ose L*m*t !er*o' 4e/ y -le Se(&r*ty #o(&ments -duction loan !&r/ose L*m*t M r3*n 4e/ y -le Se(&r*ty #o(&ments t%*s .*n' of lo n *s 3*,en to t%e st ff mem-ers for t%e %*3%er st&'y of t%e*r t6o (%*l'ren = St&'y *n In'* 2D F E;& tes mont%ly *nst llments of 4s. 32 C t%o&s n' E;&*t -le mort3 3e of /ro/erty #! note, s n(t*on letter, e;&*t -le mort3 3e (% r3e e:tens*on letter, l*fe *ns&r n(e /ol*(y of st&'ent, 6%*(% ss*3ne' *n f ,or of - n., term lo n 3reement, re(t*f*( t*on letter Ot%er terms Interest *s re;&*re' to -e / *' e,ery mont% 2%e *nst llment of lo n 6*ll -e st te' fter 1 mont%s of t%e (om/let*on of st&'y Staff vehicle loan !&r/ose L*m*t 4e/ y -le to /&r(% se ne6 C ol' t6o 6%eeler for /erson l &se 4s. 40,000 e;& te' mont%ly *nst llments 4s. 1D C t%o&s n' ? 4s. 3,D0,000 -= St&'y *n -ro ' ? 4s. 4,D0,000 4 te of *nterest + n. r te P 1 F !erson l &se 4s. 1D,000 m :*m&m 11 mont%s E;& te' mont%ly *nst llments of 4s. 23 C t%o&s n' !erson l 3& r ntee of t6o st ff mem-ers of t%e - n. //l*( t*on form, letter of s n(t*on, #! note, letter of 3& r ntee

4 te of *nterest 11 F

4 te of *nterest 0 F

Se(&r*ty #o(&ments

%y/ot%e( t*on of ,e%*(le to -e /&r(% se' #! note, letter of 3& r ntee, %y/ot%e( t*on of ,e%*(le, *ns&r n(e /ol*(y

Staff domestic a%%liances loan !&r/ose L*m*t 4e/ y -le Se(&r*ty #o(&ments $or /&r(% s*n3 (ons&mer '&r -les rt*(les ,*5. free5e, 6 s%*n3 m (%*ne, flo&rm*ll, 2.)., )C#, room (on'*t*oner, et(. 4s. D0,000 e;& te' mont%ly *nst llments of 4s. 20 C t%o&s n' for f*rst 20,000 t%en fter6 r' 4s. 23 C t%o&s n' %y/ot%e( t*on of ,e%*(le to -e /&r(% se' #! note, letter of 3& r ntee, %y/ot%e( t*on of ,e%*(le, *ns&r n(e /ol*(y 4 te of *nterest for *n*t* l 20,000 - n. r te for rest mo&nt -en(% m r. r te <(&rrent r te=

Staff housin6 loan !&r/ose L*m*t 2o (onstr&(t C /&r(% se res*'ent* l -&*l'*n3 for off*(ers n' ot%er &//er ( 're ? 4s. D,00,000 $or (ler. $or /eon n' ot%ers !er*o' 4e/ y -le Se(&r*ty #o(&ments 20 ye rs e;& te' mont%ly *nst llments of 4s. E C t%o&s n' e;&*t -le mort3 3e of /ro/erty, t6o st ff mem-ers8 3& r ntee #! note, letter of 3& r ntee, letter of s n(t*on, *ns&r n(e /ol*(y, e;&*t -le mort3 3e of /ro/erty 4 te of *nterest 1.D F ? 4s. 4,00,000 ? 4s. 3,00,000

!ata analysis and observation and su66estions Presence of loan policy In t%e 4AHKO2 #IS24IC CO9O!4A2I)E +ANK, -efore t6o ye r t%ere 6 s not /ro/er /ol*(y for lo n, -&t se/ r te (*r(&l r for e (% lo n. +&t t /resent 4AHKO2 #IS24IC CO9 O!4A2I)E +ANK % ,e *ts o6n lo n /ol*(y n' (r*ter* to sensor t%e lo n. Co*n(*'ently, 4+I lso 'e(l re' *n ne r, e (% n' e,ery - n. s%o&l' % ,e *ts o6n lo n /ol*(y. 2%*s *s t%e /o*nt, 6%*(% *s str*.*n3 &s t%e fores*3%te'ness of t%e - n. m n 3ement n' lso lo n m n 3er of t% t t*me Mr. +% tt 6%o /re/ re /resent lo n /ol*(y 6*t% t%e %el/ of t%e some eff*(*ent st ff mem-ers of t%e lo n 'e/ rtment. $evision made on annual asis 4AHKO2 #IS24IC CO9O!4A2I)E +ANK /re/ re *ts o6n lo n /ol*(y 7&st -efore t6o ye r. So *n one sense, 6e ( n s y 4AHKO2 #IS24IC CO9O!4A2I)E +ANK re,*se' *ts lo n /ol*(y *n l st t6o ye r -&t *t *s not re,*se' e,ery ye r re3&l rly. So I ( n s&33est t% t to 4AHKO2 #IS24IC CO9O!4A2I)E +ANK, for 6 l. 6*t% t%e ne6 er of (re'*t m r.et, - n. s%o&l' try to *m/ro,e o6n self *n t%e f*el' of (re'*t m n 3ement -y re,*s*n3 t%e lo n /ol*(y t*me to t*me -y le rn from / st ye r8s e:/er*en(e. )oan policy cover #ele3 t*on of len'*n3 /o6er Met%o' for ssessment of 6or.*n3 ( /*t l 4 t*n3 of -orro6ers Lo n /r*(*n3 Dele#ation of lendin# po"er In t%e / st t*me, 4AHKO2 #IS24IC CO9O!4A2I)E +ANK % ' 3*,en 'ele3 t*on of len'*n3 /o6er to *ts sele(te' -r n(% off*(es -&t t /resent 4+I %&r'le 3 *nst t%*s. +y effe(t of *t, 4AHKO2 #IS24IC CO9O!4A2I)E +ANK ( n(el ll t%e 'ele3 t*on /o6er of *ts -r n(% off*(es n' -&r'en of t%e %e ' off*(e 3*,es *n 6r*tten *n l n3& 3e of s&33est*on t% t 6% t s%o&l' -e t%e 'e(*s*onM An' %e ' off*(e only (om/lete f&lf*ls t%e le3 l form l*ty to

s n(t*on t%e lo n. Ho6e,er *t t .es more t*me for s n(t*on*n3 lo n -&t -y t%e /r (t*( l //ro (% - n. ( n sol,e t%*s '*ff*(&lty. /ethod of assessment of "orkin# capital In t%e 4AHKO2 #IS24IC CO9O!4A2I)E +ANK, t%ere re t%ree met%o's for 6or.*n3 ( /*t l, 6%*(% *s &sef&l to - n. for ( l(&l t*n3 t%e nee' of ( s% (re'*t or s%ort9term lo n of f*rm. 2%*s met%o' 3*,es ', nt 3e to - n. to f*n' o&t *f t%e 'em n' -orro6er *s f *r. Met%o's of 6or.*n3 ( /*t l ( l(&l t*on re 3*,en -elo6? C /*t l of -orro6er, n' -orro6*n3 from rel t*,es re m&lt*/l*e' -y t%ree #*fferen(e -et6een (&rrent ssets n' (&rrent l* -*l*t*es m&lt*/ly -y fo&r 20 F of est*m te' s les +orro6er (ontr*-&t*on DF of t%e t&rno,er *n 6or.*n3 ( /*t l *s ((e/te' A-o,e t%ree 6%*(%e,er *s less *s or*3*n l 6or.*n3 ( /*t l 'em n' of t%e -orro6er s /er t%e ( l(&l t*on of 4AHKO2 #IS24IC CO9O!4A2I)E +ANK. $atin# of orro"ers 4AHKO2 #IS24IC CO9O!4A2I)E +ANK % s *ts o6n met%o' of (re'*t r t*n3 t% t *s -enef*(* l for -ot% t%e - n. n' t%e -orro6er. +e( &se t%ro&3% t%*s - n. s%o&l' m *nt *n t%e*r (&stomer 6%o 'e l 6*t% - n. re3&l rly n' t%e -orro6er *s //re(* te' for t%e*r /erform n(e. Anot%er s*'e -orro6er 3ets -enef*t t%ro&3% *nterest r te re'&(t*on. 2%*s met%o' *s 3*,en -elo6? "redit ratin6 of loans AAA: "ash credit account In t%e ((o&nt, *nterest *s / *' re3&l rlyL *t *s / *' t t%e en' of e,ery ;& rter 6*t%*n 10 ' ys. Sto(. st tement *s re(e*,e' re3&l rly. O,er'r ft *s / *' re3&l rly 6*t% *ts *nterest. E,ery 'o(&ment *s 3ett*n3 re3&l rly for re,*e6 n' rene6 of ((o&nt. $erm loans In t%e ((o&nt, *nterest n' *nst llments re / *' re3&l rly.

Not*(e *s not 3*,en on ((o&nt for ny re son.

Amo&nt

of

lo n Interest (on(ess*on 1F 1F 2F

s n(t*one' 2D,001 to 2,00,000 2,00,001 to 10,00,000 A-o,e 10,00,000

AA: "ash credit account In t%e ((o&nt 6%*(% *nterest *s / *' re3&l rlyL *t *s / *' t t%e en' of t%e e,ery ;& rter m :*m&m 30 ' ys. Sto(. st tement *s re(e*,e' re3&l rly O,er'r ft *s / *' re3&l rly 6*t% *ts *nterest. $erm loans M :*m&m t6o *nst llments re '&e -&t t t%e en' of t%e ye r *.e. on 31 st m r(%, t%ere *s no '&e *nst llment. Amo&nt of lo n Interest (on(ess*on 0.D F 0.D F 1F

s n(t*on 2D,001 to 2,00,000 2,00,001 to 10,00,000 A-o,e 10,00,000 )oan pricin#

4AHKO2 #IS24IC CO9O!4A2I)E +ANK l6 ys 3*,e more *nterest on 'e/os*t t% n ot%er - n. *n 4 7.ot '*str*(t to ttr (t t%e m r.et, effe(ts t%e lo n /r*(*n3. So lo n r te of

4AHKO2 #IS24IC CO9O!4A2I)E +ANK *s %*3%er. 2%o&3% 4AHKO2 #IS24IC CO9 O!4A2I)E +ANK 3et (&stomer -e( &se of *ts ser,*(es, *ts s/ee'y /ro(ess, /r (t*( l //ro (%, n' *ts rel* -*l*ty *n m r.et. +&t %ere one /oss*-*l*ty *s lso t% t t%e / yer of %*3%er *nterest *s somet*me re son for f&t&re loss or -&r'en on - n.. So try to 3et 'e/os*t t lo6er r te to re'&(e t%e lo n /r*(*n3. It *s lso f (t t% t *n t%*s (r*t*( l s*t& t*on of (o9 o/er t*,e - n.s, *t *s ,ery % r' to 3et 'e/os*ts from t%e m r.et -&t *f - n. m n 3ement tr*es to (re te tr&st *n /&-l*(, %ere one more -enef*t *s t% t t%e 'e/os*tor n' t%e -orro6er *s t%e s% re%ol'er of t%e - n. or s y o6ner of t%e - n.. So *t *s less % r' t% n ot%er ty/es of - n. to (re te tr&st. $eportin# format 4e/ort*n3 form t for e:(ess &t*l*5 t*on of len'*n3 /ro(ess -y -r n(% m n 3er *s no6 not nee'e', -e( &se s /er t%e ne6 3&*'el*nes of t%e 4+I, -r n(% of (o9o/er t*,e - n. % s no /o6er to s n(t*on lo n. 'dentification of sensitive sectors and discountin# further lendin# 4#C+ *s not t% t m&(% -*3 - n. *n (om/ re of (ommer(* l - n., t%o&3% *t *s nee'e' for t%e - n. to 6 t(% on t%e 3ener l sens*t*,e se(tors me ns len'*n3 *n t% t se(tor 6%*(% *s r*s.y C ' n3ero&s for ny f*n n(* l *nst*t&t*ons. $or e: m/le len'*n3 3 *nst s% res. 2o f*n' o&t t%e s/e(* l sens*t*,e se(tor, 6e s%o&l' (ont*n&o&sly 6 t(% on o&r -orro6ers. Somet*mes *n ( se of (o9o/er t*,e - n.s, re son of t%e*r N!A *s len'*n3 to / rt*(&l r 3ro&/ or *n'&stry. 4#C+ lso .ee/ 6 t(% n' '*s(o&r 3*n3 f&rt%er len'*n3. $or e: m/le -&*l'ers 'e,elo/ers8 ( s% (re'*t. /onitorin# of unduly lar#e e0posure to an individual or a #roup 2o sto/ t%e &n'&ly l r3e e:/os&re to n *n'*,*'& l or 3ro&/, *n 4AHKO2 #IS24IC CO9 O!4A2I)E +ANK lo n st ff mon*tor n' 'r 6 ttent*on of %*3%er &t%or*ty.

%%raisal format
!4IMA4I IN$O4MA2ION N me of t%e &n*t # te of est -l*s%ment of -&s*ness 2y/e of -&s*ness # te of st rt*n3 of 'e l*n3 6*t% - n. A''ress n' tele/%one no.? Off*(e Str&(t&re of &n*t !ro/r*etors%*/ f*rmC / rtners%*/ f*rm C /r*, te l*m*te' C /&-l*( l*m*te' N me of t%e /ro/r*etor C/ rtners C '*re(tors 6*t% C#N <(om/&lsory 'e/os*t n&m-er= IN$O4MA2ION 4ELA2E# 2O "0A4AN2O4S N mes of 3& r ntors Com/&lsory 'e/os*t n&m-er +&s*ness Ann& l *n(ome L n' -&*l'*n3 /ro/erty Inform t*on -o&t /re, lent lo ns IN$O4MA2ION A+O02 !4E)ALEN2 $ACILI2I !4O)I#E# +I 4AHKO2 #IS24IC CO9O!4A2I)E +ANK 2y/es of f (*l*ty Amo&nt 3r nte' #&e ' te !resent - l n(e A+O02 !4ESEN2 CASH C4E#I2 $ACILI2I Cre'*t t&rn o,er of l st ye r Amo&nt of ( s% (re'*t Amo&nt of ( s% (re'*t 6*t% o,er'r ft !re,*o&s ye r sto(. !resent sto(. n' ' te "o'o6n $ (tory

Me s&rement Cre'*t - l n(e (om/ re 6*t% s le 2o / yoff of o,er'r fts C e:(ess S&-m*ss*on mont%ly Interest / yoff lo n A((o&nt o,er '&e <yes C no= S*m*l rly *n sto(. of sto(.

I'e l 1? 1 4e3&l r 4e3&l r 4e3&l r 10 to 1D F #*fferen(e

!erform n(e of / rty <rem r.s=

st tement 4e3&l r

E;& te' mont%ly *nst llments on 999999

IN$O4MA2ION O$ COLLA2E4AL SEC04I2I IMMO)A+LE !4O!E42I N me of o6ner n' 'es*3n t*on of %*m A''ress of /ro/erty L n' *n s;& re y r' Constr&(t*on *n s;& re feet Est*m te' /r*(e of /ro/erty <Amo&nt of l n' *s ( l(&l te' s /er t%e ''ress P Amo&nt of (onstr&(t*on *s ( l(&l te' s;& re feet J 300= Ot%er l* -*l*ty on *t, ment*on *t MACHINE4IC$04NI204ECEO0I!MEN2 et(. Amo&nt of /ro/erty SEC04I2I CO)E4A"E Est*m te' , l&e of (oll ter l se(&r*ty M*n&s ot%er l* -*l*ty on s me /ro/erty !l&s ot%er (oll ter l se(&r*ty 2ot l (oll ter l se(&r*ty Amo&nt of 'em n' C /re, lent f (*l*ty

JSe(&r*ty (o,er 3e? <tot l (oll ter l se(&r*tyCtot l f (*l*ty= J 100 JA((e/te' me s&re D0 F +HR.. Y.ARS F 0,R.S F#R C#/PAR S#" Ie r en'*n3 !&r(% se S les Net !rof*t Net 6ort% Sto(. #e-tors Cre'*tors

F "A"C A$ /.AS,R./."+ $*n n(* l me s&rement S les Clos*n3 sto(. "ross /rof*t Net /rof*t +orro6*n3s from rel t*,es Net 6ort% <C /*t l P reser,e Q /ro/r*etor C / rtners '*re(tors8 'e-t= $*n n(* l me s&rement C&rrent r t*o? <(&rrent ssetsC (&rrent l* -*l*t*es= I'e l 1.2D C 1 <m*n*m&m= #e-t e;&*ty r t*o? <2ot l 'e-t C Jtot l e;&*ty= J+orro6*n3s from rel t*,es re *n(l&'e' I'e l 3C1 <m :*m&m= More C less <(om/ re 6*t% *'e l= More C less <(om/ re 6*t% l st ye r=

F#R/A+ #F 3A$A"C. SH..+ C /*t l n' l* -*l*ty Current lia ility + n. lo n CCCO# O&tst n'*n3 e:/enses Cre'*tors of "oo's Ot%ers !ro/erty n' Assets Current assets Sto(. #e-tors Stores C s% on % n's + n. - l n(e !re/ *' e:/enses A', n(es Ot%ers 2ot l <A= /edium/lon# term lia ility + n. lo n $*n n(e (or/. lo n Ot%er 'e-ts 4#C+ term lo n +orro6*n3 from rel t*,es Ot%ers 2ot l <+= Capital/reserve C /*t l 4eser,e !rof*t Ot%er 2ot l<C= ,eneral total %-4B4C& 2ot l <+= Proprietor/partner/directors5 de t Ot%ers "oo'6*ll ! tent Loss of /re,*o&s ye rs 2ot l<C= ,eneral total %-4B4C& 2ot l <A= +i0ed assets L n' n' -&*l'*n3 M (%*ner*es $&rn*t&re )e%*(le Ot%er *n,estments

ASSESSMEN2 $O4 CASH C4E#I2 C /*t l P -orro6*n3s from rel t*,es J 3 <As /er t%e l st ye r - l n(e s%eet= Gor.*n3 ( /*t l <(&rrent ssets Q (&rrent l* -*l*t*es= J 4 <As /er t%e l st ye r - l n(e s%eet= Est*m te' s les J 20 F <C&rrent ye r= M*n*m&m of -o,e t%ree #em n' C /re, lent f (*l*ty M :*m&m /erm*ss*-le f*n n(e <M*n*m&m from -o,e t6o= RRRRRRRRRR RRRRRRRRRR RRRRRRRRRR RRRRRRRRRR RRRRRRRRRR RRRRRRRRRR

/ACH ".RY $#A" APPRA SA$ F#R/A+ Ele(tr*(*ty (onne(t*on IN$O4MA2ION A+O02 2HE MACHINE4I 2O +E !04CHASE# S&//l*er8s n me M (%*nery8s n me O& nt*ty !r*(e As /er m r3*n /erm*ss*-le lo n MA4"IN O$ !E4MISSI+LE $INANCE <GO4KIN" 0NI2= M r3*n on mo&nt of 'em n'e' lo n Gor.*n3 ( /*t l s /er l st - l n(e s%eet Est*m te' re*n,estment of t%e (&rrent ye r /rof*t C&rrent ye r8s est*m te' 6or.*n3 ( /*t l <2P3= M r3*n of 6or.*n3 ( /*t l <2D F (&rrent sset of l st ye r= M r3*n for /erm*ss*-le f*n n(e <49D= If <1= *s less t% n <1=, %o6 ( n t%ey -r*n3 '*fferen(e of mo&nt from lon3 term so&r(es *s re;&*re' (l r*f*( t*on

ES2IMA2E# !4O$I2 AN# #SC4 <#e-t Se(&r*ty Co,er 3e 4 t*o= *. Ne6 &n*t !A42IC0LA4S 1 1. !ro'&(t*on ( / (*ty 2. 0t*l*5 t*on ( / (*ty <F= 3. !ro'&(t*on 4. S les D. Net /rof*t 1. #e/re(* t*on E. Interest on lo n 2 IEA4S 3 4

8. C s% flo6 <DP1PE= 9. Amo&nt of EMI of 'em n'e' lo n /er nn&m 10. #SC4 <8C9= 11. A,er 3e #SC4

**. Gor.*n3 ( /*t l 1= !rof*t of (&rrent ye r 2= #e/re(* t*on of (&rrent ye r 3= C s% /rof*t of (&rrent ye r <1P2= 4= Amo&nt of EMI of 'em n'e' lo n /er nn&m D= #SC4 <3C4= M*n*m&m A((e/t -le Me s&re for #SC4 1.D to 2 Somet*mes *n ( se of ne6 &n*t, /ro7e(t re/ort /resent &nre l*st*( /*(t&re of f&t&re. So - n. s%o&l' .ee/ *t *n (ons*'er t*on t t%e t*me of ( l(&l t*on of #SC4. A((e/te' me s&re for *t *s 10 F.

APPRA SA$ #F //#2A3$. PR#P.R+Y N me of o6ner n' 'es*3n t*on of %*m A''ress of /ro/erty L n' *n s;& re y r' !ro/ose' (onstr&(t*on *n s;& re feet !l n of (onstr&(t*on / sse' -y M&n*(*/ l Cor/or t*on Est*m te' (ost of /ro/erty <Amo&nt of l n' *s ( l(&l te' s /er t%e ''ress P Amo&nt of (onstr&(t*on *s ( l(&l te' s;& re feet J 400= "SP.C+ #" R.P#R+

"oo's sto(. 2y/e of -&s*ness 4e/ort*n3 fter (%e(.*n3 of ((o&nt*n3 -oo.s, ,o&(%ers, et(. Ins&r n(e of sto(. n' mort3 3e' /ro/erty *s s norms, *sn8t *tM Is *t /ro/er for s n(t*onM

D.PAR+/."+ "#+. CR.D + D.S.R2.D".SS #F $#A"..

N me of f (*l*ty 4e;&este' mo&nt for (re'*t !erm*ss*-le f*n n(e s /er //r *s l

O2HE4 C4I2E4IA

+orro6*n3s from rel t*,es re ret *ne' *n -&s*ness. G*t%o&t /erm*ss*on from - n. rel t*,e ( nnot 6*t%'r 6 t% t mo&nt. Immo, -le /ro/erty *s nee'e' to t .e s (oll ter l se(&r*ty. L teCret*re / rtner8s ( /*t l *s not 6*t%'r 6n 6*t%o&t /erm*ss*on from - n.. C&rrent r t*o #e-t e;&*ty r t*o Se(&r*ty (o,er 3e #SC4

#3S.R2A+ #" A"D F "D "0S A"D S,00.S+ #"S $orm t for (olle(t*on of m*n*m&m *nform t*on -o&t /otent* l -orro6er It *s m&st for ny - n. 6%o 6 nts to 6*n m r.et to (olle(t t%e *nform t*on -o&t %*s /otent* l (&stomer. 4AHKO2 #IS24IC CO9O!4A2I)E +ANK - n. 6%*(% e 3er to *n(re se o6n m r.et s% re lso (olle(t t%e *nform t*on -o&t f&t&re -orro6er. 0se of soft6 re for (re'*t //r *s l + n. % s o6n (om/&ter 'e/ rtment to 'e,elo/ t%e soft6 re for - n. -&t t%*s no6 *n *n*t* l st 3e. M 7or*ty t*me (ons&me 6or. *s 'one -y t%e (om/&ter t%o&3% //r *s l of (re'*t *s 'one -y m n& lly. 4e,*s*on *n //r *s l form t '&r*n3 l st t6o ye r 4AHKO2 #IS24IC CO9O!4A2I)E +ANK /re/ re' *ts /ol*(y -efore t6o ye r n' 'e(*'e /ro/er (r*ter* for s n(t*on t%e lo n. #*fferent //r *s l form t for '*fferent lo n se3ment 2%ere *s one (ommon form t for ll lo ns re not /oss*-le -e( &se e (% lo n re;&*re / rt*(&l r *nform t*on n' ( l(&l t*on. Here *n 4AHKO2 #IS24IC CO9O!4A2I)E +ANK I f*n' '*fferent //r *s l form t for '*fferent se3ments. 2% t 6e see *n -o,e //r *s l form t. System of f*: t*on of m :*m&m t*me for lo n s n(t*on n' s n(t*on 6*t%*n l*m*t On / /er, t%ere *s no m :*m&m l*m*t for s n(t*on t%e lo n -&t 3ener lly s /er t%e o/*n*on of off*(er 6*t%*n ten ' ys lo n *s s n(t*one'. Somet*mes -e( &se of ( relessness of t%e -orro6er or t .e t*me for /ro,*'*n3 nee'e' 'o(&ments *s re son for 'el y of s n(t*on t%e lo n. In %o&se e:/ert*se for //r *s l of %* te(% /ro7e(ts S/e(* l 6or.s l6 ys nee' e:/erts -&t *n 4#C+ 6e f*n' l (. of t%e e:/ert for //r *s l of %* te(% /ro7e(t n' *t *s ' n3ero&s /r s y r*s.y for ny *nst*t&t*on. I t%*n. 4#C+ % ,e to re(r&*t e:/ert for //r *s l of %* te(% /ro7e(ts 6%o % s s/e(* l .no6le'3e -o&t -&s*ness

se(tor

n' m stery of /ro7e(t re/ort st&'y

n' no6 -e( &se of )4S, e:/ert % ,*n3

e:/er*en(e *s e s*ly , *l -le t lo6 (ost. !r (t*(e of r t*n3 of -orro6er n' lo n /r*(*n3 4#C+ 3*,e r t*n3 to t%e -orro6er on t%e - se of t%e*r l st ye r 'e l*n3 6*t% - n.. $or t% t 4#C+ % ,e soft6 re, 6%*(% 3*,e r t*n3 to t%e -orro6er. At t%e t*me of //r *s l, r t*n3 *s not 3*,en. Com/l* n(e of terms n' (on'*t*ons9 !romoter8s (ontr*-&t*on, (oll ter l se(&r*t*es,et(. +efore /re/ r*n3 t%e lo n re/ort, *t *s .ee/*n3 *n ,*e6 t% t ll ty/es of re;&*rement re f&lf*lle'. Con'*t*on letter *s 3*,en to (&stomer *f (&stomer f&lf*lls ll t%e (on'*t*ons lo n *s s n(t*one' -y - n.. Com/&t t*on of (&stomer /rof*t -*l*ty /er -orro6er "ener lly I /r (t*(e, not s*n3le (oo/er t*,e - n. *n 4 7.ot *s ( l(&l t*n3 t%e (&stomer /rof*t -*l*ty /er -orro6er. If *t *s ( l(&l te', - n. ( n .no6 6%*(% (&stomers re more -enef*(* l for t%em so - n. ( n 3*,e ttent*on to m *nt *n t%em n' ( n *n(re se /rof*t. A' Q %o( s n(t*on r rely 'one At /resent, t%e , r*o&s (omm*ttee of - n. (ons*'ers '9%o(C ''*t*on l (re'*t for meet*n3 tem/or ry re;&*rement only fter t%e -orro6er % s f&lly &t*l*5e'Ce:% &ste' t%e e:*st*n3 l*m*t. In t%e '9%o( s n(t*on, not%*n3 *s t .en s se(&r*ty so t%*s *s r*s.y -&t t%e /re,*o&s 'e l*n3 of (&stomer 6*t% t%e - n. ( n 3*,e t%e /*(t&re of (&stomer. S n(t*on of lo n In t%e (o9o/er t*,e - n., s n(t*on*n3 /o6ers re only *n t%e % n's of -o r' of '*re(tors so somet*me lo ns re s n(t*one' on t%e - ses of rel t*on, not on t%e - se of t%e 'eser,e'ness of (&stomer. I lso (ons*'er t% t t%e (oo/er t*,e - n.s re - s*( lly me nt for t%e -enef*t of *ts mem-ers -&t 6*t%*n t%e l*m*ts of 4eser,e + n. of In'* 8s 3&*'el*nes. Sl*3%t mo'*f*( t*on *n t%ese r&les for 6ell -e*n3 of mem-ers *s st*ll llo6e'.

CR.D + /#" +#R "0, F#$$#1 ,P A"D R.2 .1 G%en 6e len', *t *s essent* l for &s t% t to .ee/ 6 t(% on *t t*ll 6e re(o,er *t. 2%*s *s ( lle' (re'*t mon*tor*n3 *n terms of - n.*n3. CR.D + /#" +#R "0 SYS+./ " RA-!#+ D S+R C C#-#PRA+ 2. 3A"! In t%e 4#C+, t%ere *s system for (re'*t mon*tor*n3 s/e(* lly ((o&nt, 6%*(% *s -o,e 10,00,000 r&/ees *s 'es(r*-e' -elo6? $*n' o&t t%e l*st of /otent* l N!A ((o&nts -o,e 10,00,000 r&/ees St tements of /otent* l N!A ((o&nts re s&-m*tte' to %e ' off*(e from -r n(%es He ' off*(e mon*tor*n3 t%*s e,ery t%ree mont%s n' /re/ re re/ort on *t. 4e/ort *s s&-m*tte' to -o r' of '*re(tors. Follo% u5 action for cre&it (onitorin' in RDC3 Consol*' t*on of ' t , 6%*(% (omes from t%e -r n(%es n' e,ery mont%, &/' te t%e ' t 3ener te t%*s n' &se *t for follo6 &/ He ' off*(e '*re(tly sen's t%e not*(e to ((o&nt %ol'ers of s&(% ((o&nts 2o sto/ t%e sl*// 3e of t%e /otent* l N!A ((o&nts, - n. or3 n*5e t%e (omm*ttee &n'er &t%or*5 t*on of Mr. +% tt<A.".M.= n' Mr. ) ' l*y <A.#.M.= 6*t% t%e %el/ e,ery -r n(% re(o,ery off*(ers, t%ey try to re(o,er. "ener l m n 3er rr n3es t%e meet*n3 for t% t n' 3*,es 3&*'el*nes to t%e (omm*ttee mem-er. n'

#3S.R2A+ #" F "D "0S A"D S,00.S+ #"S System of lo n /ortfol*o re,*e6 n' mon*tor*n3 2%ere *s system of 6ee.ly re,*e6 n' mon*tor*n3 of lo n /ortfol*o *n t%e 4#C+, e,ery 6ee. st tement *s /re/ re to -e (;& *nte' 6*t% t%e /resent (re'*t 'e/os*t r t*o, *f t%*s r t*o *s less t% n E0F for e: m/le 1DF, *t re/resent t% t - n. ( n f*n n(e &/ to D F t /resent. !re/ r t*on of MIS re/ort for lo n /ortfol*o re,*e6 t -o r' le,el E,ery 6ee., /resent s*t& t*on of lo n /ortfol*o *s /&tt*n3 3 *nst -o r' of '*re(tors. Com/l* n(e of /r&'ent* l 3&*'el*nes E:/os&re Ce*l*n3 ? = In'*,*'& l 20F of t%e tot l ( /*t l f&n' ? -= "ro&/ !r*or*ty se(tor len'*n3? !r*or*ty ? Ge .er 2%*s *s follo6e' -y t%e 4#C+ te(s of 5riority sectors A', n(es to *n'*,*'& ls for (t*,*t*es ll*e' to 3r*(&lt&re Lo ns n' ', n(es to (ott 3eCsm ll s( le *n'&str*es n' e;&*/ment Csystem for 'e,elo/ment of ne6 n' rene6 -le so&r(es of ener3y. A', n(es to ro ' n' 6 ter tr ns/ort o/er tors for /&r(% se of one ,e%*(le !r*, te ret *l tr 'ers 'e l*n3 *n essent* l (ommo'*t*es <f *r /r (t*(e s%o/= Ot%er /r*, te ret *l tr 'ers 6*t% (re'*t l*m*t not e:(ee'*n3 4s. D,00,000 Sm ll -&s*ness enter/r*se !rofess*on ls n' self em/loye' /ersons E'&( t*on l lo ns Ho&s*n3 lo ns not e:(ee'*n3 4s. 10,00,000 Cons&m/t*on lo n te(s of %eaker section S(%e'&le' ( steCs(%e'&le' tr*-e Gomen Ot%ers D0F of t%e tot l ( /*t l f&n' 10F of t%e tot l ', n(es 1DF of t%e tot l ', n(es

2*mely rene6 n' re,*e6 -y (re'*t l*m*t E,ery ye r 4#C+ re,*e6 ( s% (re'*t ((o&nts n' e,ery t%ree ye rs rene6 t% t ((o&nts. At t%e t*me of re,*e6 - n. only .ee/ *n ,*e6 t%e t&rno,er of -&s*ness, ((o&nt *ns/e(t*on, f*el' *ns/e(t*on, rene6 *ns&r n(e, rene6 s%o/ (t l*(ense, /roof of rent, *n(ome t : ret&rn or ssessment of *n(ome t :, t&rno,er 6*t% - n.. +&t /ro(ess of rene6 of ((o&nts *s tot lly *ns/e(t*on of / rty. + n. (ons*'ers l st t%ree ye r8s -&s*ness /ro3ress of t%e / rty n' 'e l 6*t% - n. lso.

S0CCESS S2O4I @99.1!E4CEN2 4ECO)E4I O$ A"4IC0L204AL AN# NON9 A"4IC0L204AL LOANSA

MA4)ELO0S ACHIE)EMEN2 +I SH4I 4AHKO2 #IS24IC2 COO!E4A2I)E +ANK L2#., 4AHKO2, "0HA4A2 S2A2E

S%r* 4 7.ot #*str*(t Co9o/er t*,e + n. Lt'.<4 7.ot Q "&7 r t= *s re3*stere' *n 19D9 &n'er se(t*on 10 of t%e +om- y Co9o/er t*,e So(*et*es A(t 192D <+om- y A(t )II of 192D= n' % ,e (ommen(e' *ts 6or.*n3 *n t%e mont% of M r(% 1910.More t% n t%ree n' % lf 'e( 'es of *ts 6or.*n3 + n. % s m 'e tremen'o&s /ro3ress *n e,ery s/ n of - n.*n3. 2%*s + n. *s 6or.*n3 s m*''le le,el f*n n(*n3 3en(y *n t%ree t*re Co9o/er t*,e System. 2%e m *n o-7e(t of t%e + n. *s to m .e , *l -le lo ns n' ( s% (re'*ts t lo6er r te of *nterest to t%e ff*l* te' so(*et*es to /romote 3r*(&lt&r l s 6ell s non9 3r*(&lt&r l (t*,*t*es *n t%e '*str*(t. 2%*s + n. *s ff*l* te' to t%e "&7 r t St te Co9o/er t*,e + n. Lt'., n' *ts re of o/er t*on *s t%e 6%ole 4 7.ot #*str*(t. 2%ere re ot%er se,enteen #*str*(t Centr l Co9o/. + n. re 6or.*n3 *n t%e S2A2E O$ "&7 r t. Co9o/er t*,e mo,ement *n t%*s '*str*(t % s t .en *ts 3r ssroots le,el. 2%*s '*str*(t *s ste/ %e ' *n '*,ers*f*e' n' 'ym *( Co9o/er t*,e Mo,ement *n (om/ r*son to ot%er '*str*(t *n t%e st te s 6ell s *n t%e n t*on . #e,elo/ment o' Co9o/er t*,e Mo,ement *n t%*s '*str*(t *s m&(% more '*,ers*f*e' n' *ts (o,er e,ery /oss*-le for %e lt% *n t%e st te of "&7 r t. re of e(onom*( 'e,elo/ment of (o9o/er t*,e 4 7.ot #*str*(t *s f&rt%er -*f&r( te' Mo,ement *n t%*s '*str*(t t%e 6%ole (re'*t 3oes to t%e + n., %e 6 s lso t%e M*n*ster *nto 13 2 l&. s, (ons*st*n3 811 )*ll 3e 2o6s n' C*t*es 6*t% t%e /o/&l t*on of 2D l .%s. 2%e m *n (ro/s of t%ese '*str*(t re "ro&n'n&t,Cotton, G%e t , + 7r , H 6 r n' C stor. 2ot l f rm*n3 re *s 8.44 l .%s %e(tors n' t%e tot l No. of 1E41 Co9 o/.So(*et*es re 6or.*n3 *n t%*s '*str*(t. 800 '*fferent ty/es of so(*tes re ff*l* te' to t%*s + n.. 2%ere re ot%er 2DD -r n(%es of (ommer(* l + n.s n' 0r- n Co9 o/er t*,e - n.s lso ser,*n3 *n t%*s '*str*(t. 4 7.ot #*str*(t *s (entr lly lo( te' *n S &r s%tr 4e3*on of t%e st te of "&7 r t . 2%*s re *s /erm nt 'ro&3%t /rone re .

E,ery f*,e ye rs t%ere re only t6o norm l ye rs n' l6 ys r&nn*n3 s%ort 3e of *rr*3 t*on n' 'r*n.*n3 6 ter. A,er 3e r *nf ll *s -o&t 208 to 2D8 n' 3ro&n'6 ter le,el *s f r -ello6 t% n t%e norm l 6 terle,el. Amon3st ll t%ese s *' &n ,o*' -le (*r(&mst n(e S%r* r 7.ot #*str*(t Co9o/er t*,e + n. *s rem *n No. 1 + n. *s *ts e,ery s/ n of 6or.*n3. O&t of 800 n ff*l* te' so(*et*es 31D so(*et*es % ,e / *' 100 /er(ent re(o,ery to t%e + n. s on 31 st M r(% 1991. G%*le t so(*ety le,el *n 11 so(*et*es 100 /er(ent re(o,ery % ,e -een / *' -y t%e mem-ers. 2%*s + n. *s 3ett*n3 @ AA Cl ss of &'*t s*n(e l st 24 yrs, s 6ell s 91 to 98 m r.s *n *ts &'*t s*n(e l st fo&r ye rs . + n. *s / y*n3 m :*m&m '*,*'en' of 1D F to *ts mem-er so(*et*es. + n. *s 6ell or3 n*5e' 6*t% ,ery 3oo' net6or. to *ts 102 -r n(%es *n t%e '*str*(t. + n. *s ', n(*n3 s%ort term, me'*&m term, lon3 term , ( s% (re'*ts , s(%em t*( f*n n(e lon3 6*t% ll ty/es of non9 3r*(&lt&re f*n n(e l*e 3ol' f*n n(e NSCCK)!, Ho&s*n3 Lo n et(. As on 31 st A&3&st 1991, t%e tot l mo&nt of ', nt 3e , *n,estment n' 'e/os*ts re 4s. 181 Crores, 4s. 213 Crores n' 4s. 321 (rores res/e(t*,ely. + n. % ,e ''e' t%e 3ol'en / 3es *n *ts %*story of 3E ye rs of rem r. -le 6or.*n3, es/e(* lly (%*e,*n3 No.1 /os*t*on *n t%e f*el' of re(o,ery -y 6*nn*n3 t%e f*rst /r*5e from t%e "&7 r t St te Co9o/er t*,e + n. Lt'., s*n(e l st fo&r (onse(&t*,e ye rs *n t%e 6%ole st te of "&7 r t. It *s not t% t e sy to rem *n n' lso m *nt *n n&m-er one /os*t*on *n re(o,ery 3 *nst t%e ll -o,e s *' &nf ,o&r -le ffe(te' f (tors. It s%o6s t%e 3re test efforts re m 'e to 6ell ', n(e /re/l *nn3 n ent*re res&lt or*ente' re(o,ery /ro(e'&re. At t%e ,ery s me t*me n e;& l ttent*on % ,e -een / *' on /erform*n3 ssets n' m n 3ement (ontrols. S*'e -y s*' + n. lso % ,e (on(entr te on %*3%er /rof*ts, *n(re s*n3 'e/os*ts le,el n' ens&r*n3 to se(&re %*3%est -&s*ness /er em/loyee s 6ell s 3 *n*n3 %*3%est ret&rns on *ts *n,estment t%ro&3% 6ell m n 3e' *n(ome or*ente' f&n's m n 3ement /ortfol*o. 2%*s of *ts 1D4 em/loyees *n + n. *s -e(ome s&((essf&l -e( &se of t%e emot*on l, *ntelle(t& l stren3t% n' 6*ll /o6er 6*t% 6or. eff*(*en(y ne(ess ry (om/resse' %*er r(%*( l str&(t&re ,*s9S9,*s t%e /yr m*' ( l 'es*3n /re, *l*n3 *n In'* n + n.s to' y. P.RC."+A0. #F R.C#2.RY A0A "S+ D./A"D

Year 1992993 1993994 199499D 199D991

+y5e A3r*PNon9A3r*.!r*n(*/ A3r*PNon9A3r*.!r*n(*/ A3r*PNon9A3r*.!r*n(*/ A3r*PNon9A3r*.!r*n(*/ lP Interest lP Interest lP Interest lP Interest

<L st fo&r ye rs Q 4s.*n l .%s= +otal +otal Percent De(an& Reco*ery a'e 81D0.03 E898.44 91.91 1ED1.9D 1439.14 9D.30 9E39.14 9412.81 9E.1D 99DD.01 98D1.34 99.01

+o achi*e the sai& (a'nificent 5ercenta'e of reco*ery, 3ank is strictly follo%in' ?+he .i'hteen Co((an&(ents@Athe 5rinci5lesB for the real 'eiune n& the ti(e C77 D reco*ery are as un&er :1= L st ' te of .% r*f lo n *s 30t% Se/tem-er. St rt*n3 from 1st to 1Dt% O(to-er e (% ff*l* te' 3r*(&lt&r l so(*ety % ,e to /re/ re re(onsol*' t*on of ll ty/es of lo ns ((o&nts lon3 6*t% t%e st tement s%o6*n3 'et *ls / rt*(&l r re3 r'*n3 -orro6s n me, ty/e of '&es, t%e mo&nt *n,ol,es t%ere *n n' ( l(&l t*on of *nterest on '&e of e (% -orro6 on se/ r te / 3es of t%e re3*ster s on 30t% Se/t of e (% ye r. 2= #em n' 4e3*ster ? On(e t%e s *' st tement of t%e -orro6s *s re 'y n' *t st tement of t%e -orro6s *s re 'y n' *t % n'o,er to t%e (on(erne' +r n(% M n 3er , S (ret r*es , *ns/e(tor, n' off*(ers from t%e %e ' off*(e of t%e + n., from t*me to t*me n' re,*e6e' t%e 3ener l /os*t*on of t%e e (% -orro6s n' lso t%e l test /ost*on s% ll -e note' 'o6n *n t%e s *' re3*ster. Its *s lso *n;&*re' -o&t t%e tot l re of t%e (ro/s, .*n' of (ro/s, /ro/ose' % r,est*n3 t*me, n //ro:*m te t*me n' /l (e to s le t%e (ro/s. 2%*s /ro(e'&re follo6e' (ont*n&o&sly n' re,*e6e' t%e s me from t*me to t*me n' &/' te t%e 'em n' re3*ster. 2%*s ty/e of l*,e (ont (ts t%ro&3% 6 reness /ro3r mme *t -e(ome more effe(t*,e s 6ell s fr&ltf&ll, for t%e ent*re re(o,ery /ro'&(e. 3= A s /er t%e l*st of -orro6ers t%e Ton l off*(er *s /erson l*ty ( llon3 t%e *n'*,*'& l -orro6s 6%o % ,*n3 '&es of more t% n 4s. 2D,000C9 for t%e / rt*(&l r *nform t*on n' /er *nstr&(t*on -o&t t%e re/ yment of t%e*r lo ns *n '&e t*me. 2%e most *nfl&en(e' n' ,est *ntereste' -orro6ers re lso *nforme' *n 6ell ', n(e for t%e re/ yment o' lo ns n' l ter on t%e le 3 l (t*on % ,e -een t .en *n ( se o' (ron*( 'ef &lters. All t%ese /ro(e'&re s% ll -e .e/t on t%e re(or' of 'em n' re3*ster, n' &/' te *t from t*me to t*me.

4= St rt*n3 from t%e mont% of O(to-er t e (% 2 &l. /l (e t%e meet*n3s re3 r'*n3 t%e re(o,ery % ,e -een %el' -y t%e - n. *n /resen(e of t%e (on(erne' +r n(% M n3er , Se(ret r*es n' C% *rm n of t%e so(*et*es s 6ell s lo( l #*re(tor, m n 3ers "ener l M n 3er of t%e + n.. O,er ll re,*e6 % ,e -een t .en re3 r'*n3 t%e so(*ety 6*se re(o,ery, /ro'&(t*on of e (% (ro/s , est*m te' (onse(&t*,e re(o,ery /ro3ress fter mont%, on 31st M r(% n' on 30t% H&ne. D= Off*(erCIns/e(tors re s/e(* lly 'e/&te' for to loo. fter t%e re(o,ery /ro3ress of t%e l r3e so(*et*es 6%*(% % ,*n3 %&3e mo&nt of 'em n' n' 6%ere t%e Se(ret r*es (omm*ttee Mem-ers re not (t*,e eno&3%. S&(% off*(er 6ee. n' .ee/*n3 t%e re s&//ose' to ,*s*t t%e ss*3ne' so(*et*es t le st t6*(e

re(or' of t%e -orro6ers %e (ont (te' n' mo&nt %e re(o,ere' '&r*n3 %*s l st n' /resent ,*s*t from t*me to t*me. Oftenly t%ey re lso re/ort*n3 t%e l test /os*t*on of re(o,ery to t%e s/e(* l re(o,ery (ell of t%e He ' off*(e.

Ho% account )eco(es "on Perfor(in' AssetsE (erm loans If *nterest or *nst llment of /r*n(*/ l rem *ns / st '&e for -e(omes N!A. ! st '&e me ns *s n mo&nt '&e &n'er ny of t%e f (*l*ty -&t not / *' 6*t%*n 30 ' ys fter *t -e(omes '&e. Cash credit and overdrafts If t%e ((o&nt rem *ns o&t of or'er for /er*o' of ny t6o ;& rters, *t -e(omes N!A. O&t of or'er me ns If t%e o&t9st n'*n3 - l n(e rem *ns (ont*n&o&sly *n e:(ess of t%e s n(t*one' l*m*tC'r 6*n3 /o6er 2%ere *s no (re'*t (ont*n&o&sly for s*: mont%s or Cre'*t *s not eno&3% to (o,er t%e *nterest 'e-*te' '&r*n3 t%e s me /er*o' Bills purchase and discountin# If t%e -*lls rem *ns o,er '&e n' &n/ *' for t%e /er*o' of t6o ;& rters '&r*n3 t%e ye r *t -e(omes N!A. Ot%er (re'*t f (*l*ty If ny mo&nt to -e re(e*,e' rem *ns / st '&e for /er*o' of t6o ;& rters '&r*n3 t%e ye r, *t -e(omes N!A. /er*o' of ny t6o ;& rters *t

sset classification 2%e /r*m ry <&r- n= (o9o/er t*,e - n.s s%o&l' (l ss*fy t%e*r ssets *nto t%e follo6*n3 -ro ' 3ro&/s, ,*5. !erform*n3 ssets St n' r' ssets Non9/erform*n3 ssets S&-9st n' r' ssets #o&-tf&l ssets Loss ssets Non9/erform*n3 ssets N!As re lo ns 3*,en -y - n. or f*n n(* l *nst*t&te 6%ere t%e -orro6er 'ef &lts or 'el ys le se' sset. A /% se' / yments of *nterest or re/ yment of /r*n(*/ l. Asset %ere lso *n(l&'es % s rem *ne' B/ st '&e8 for m nner *s s &n'er Ie r en'*n3 1993 1994 199D on6 r' $rom 2004 !erform*n3 ssets G%*(% ((o&nts re not *n /erform*n3 re /erform*n3 ssets. G%*(% ((o&nts re re3&l r or (o,er '&e *nst llments re less t% n s*: *s ( lle' /erform*n3 ssets. If *nterest % s rem *ne' &n/ *', ((o&nt -e(ome N!A 4 ;& rters 3 ;& rters 2 ;& rters 1 ;& rters

N!A 6 s 'ef*ne' (re'*t f (*l*ty *n res/e(t of 6%*(% *nterest n'Cor *nst llment of /r*n(*/ l s/e(*f*e' /er*o' of t*me. 2%e s/e(*f*e' /er*o' *n

"lassification 4f #on2)erformin6 ssets After *'ent*f*( t*on of -orro6e' ((o&nts s N!A t%e ne:t st 3e *s sset (l ss*f*( t*on Standard assets St n' r' Assets *s one, 6%*(% 'oes not '*s(lose ny /ro-lems n' 6%*(% 'oes not ( rry more t% n norm l r*s. tt (%e' to t%e -&s*ness. S&(% s sset s%o&l' not -e n N!A. Su -standard assets In ( se of s&-9st n' r' ssets, t%e (&rrent net 6ort% of t%e -orro6erC3& r ntors or t%e (&rrent m r.et , l&e of t%e se(&r*ty (% r3e' *s not eno&3% to ens&re re(o,ery of t%e '&es to t%e - n.s *n f&ll. In ot%er 6or's, s&(% ssets 6*ll % ,e 6ell 'ef*ne' (re'*t 6e .ness t% t 7eo/ r'*5e t%e l*;&*' t*on of t%e 'e-t n' re (% r (ter*5e' -y t%e '*st*n(t /oss*-*l*ty t% t t%e - n.s 6*ll s&st *n some loss, *f 'ef*(*en(*es re not (orre(te'. An sset 6%ere t%e terms of t%e lo n 3reement re3 r'*n3 *nterest n' /r*n(*/ l % ,e -een re9ne3ot* te' or res(%e'&le' fter (ommen(ement of /ro'&(t*on, s%o&l' -e (l ss*f*e' st n' r' n' s%o&l' rem *n *n s&(% ( te3ory for s&t le st 18 mont%s of s t*sf (tory

/erform n(e &n'er t%e re9ne3ot* te' or res(%e'&le' terms. If *nterest n' *nst llment of lo ns % ,e -een / *' re3&l rly s /er t%e terms of re9s(%e'&le'. In ot%er 6or's, t%e (l ss*f*( t*on of n sset s%o&l' not -e &/3r 'e' merely s t%ere *s s t*sf (tory (om/l* n(e of t%*s (on'*t*on. Dou tful assets An sset *s re;&*re' to -e (l ss*f*e' s 'o&-tf&l, *f *t % s rem *ne' *n t%e s&-9st n' r' ( te3ory for 12 mont%s. As *n t%e ( se of s&-9st n' r' ssets, res(%e'&l*n3 'oes not ent*tle t%e - n. to &/3r 'e t%e ;& l*ty of n ', n(e &tom t*( lly. A lo n (l ss*f*e' s 'o&-tf&l t%&s ll t%e 6e .ness *n%erent s t% t (l ss*f*e' s s&-9 st n' r', 6*t% t%e ''e' (% r (ter*st*( t% t t%e 6e .nesses m .e (olle(t*on or l*;&*' t*on *n f&ll, on t%e - s*s of (&rrently .no6n f (ts, (on'*t*ons n' , l&es, %*3%ly ;&est*on -le n' *m/ort -le. )oss assets A loss sset *s one 6%ere loss % s -een *'ent*f*e' -y t%e - n. or *ntern l or e:tern l &'*tors or -y t%e (o9o/er t*on 'e/ rtment or -y t%e 4eser,e + n. Of In'* *ns/e(t*on -&t t%e res&lt of res(%e'&l*n3, &nless

mo&nt % s not -een 6r*tten off, 6%olly or / rtly, *n ot%er 6or's, s&(% n sset *s (ons*'ere' &n9(olle(t*-le n' of s&(% l*ttle , l&e t% t *ts (ont*n& n(e s not 6 rr nte' lt%o&3% t%ere m y -e some s l, 3e or re(o,ery , l&e. PR#2 S #" F#R "PA Assets (l ss*f*( t*on St n' r' ssets S&- st n' r' ssets <On t%e - l n(e o&t st n'*n3 MIN0S mo&nt 3& r ntee -y EC"C n' mo&nt (o,ere' -y term 'e/os*t, NS), I)!, K)!, S) n' LIC /ol*(y= #o&-tf&l ssets 1. On l* -*l*ty (o,ere' -y EC"C 2. On se(&re' l* -*l*ty m*n&s mo&nt (o,ere' -y term 'e/os*t, NSC, I)!, K)!, S) /ol*(y A. #o&-tf&l &/ to 1 ye r +. #o&-tf&l for -o,e 1 ye r -&t not 3 ye r C. #o&-tf&l -o,e 3 ye rs 3. On &nse(&re' l* -*l*ty Loss <On t%e - l n(e o&t st n'*n3 m*n&s mo&nt 3& r ntee' -y EC"C= !ro,*s*on 3 *nst N!A *s 'e;& te *n 4#C+, 6%*(% e:/ress t%e so&n' (on'*t*on of t%e - n.. 2%e - ' n' 'o&-tf&l 'e-t reser,e 6 s stren3t%ene' n' t%e net N!A le,els % ,e -een -ro&3%t 'o6n to 5ero. 100 F n' LIC 20 F 30 F D0 F 100 F N*l 10 F F Of /ro,*s*on to -e m 'e 0.2D F - n. -le sset *s

5indin6s for #)

Im/ro/er sele(t*on of -orro6ers (t*,*t*es Ge . //r *s l system for (re'*t /ro/os l *n'&str*es /ro-lemC/ros/e(ts not lo(.e' *nto M n 3er* l (om/eten(e of -orro6er 3*,en less (ons*'er t*on Irre3&l r*t*es *n 'ef*(*en(*es *n 'o(&ment t*on9 0n' te' Not rene6e' Assessment of -orro6er n' 3& r ntors net 6ort% on m r.et o/*n*on L (. of re,*e6 of -orro6e' ((o&nts In 'e;& te st ff to (ont (t -orro6ers fre;&ently L (. of /ro/er follo6 &/ -y - n.s $ *l&re to t .e /&n*t*,e <str*(t n' effe(t*,e= (t*ons 3 *nst 'ef &lters + n.8s f *l&re to //re(* te t%e (ts of /rom/t re/ yers 0n'er f*n n(*n3Cnon f*n n(*n3 *n t*me of /ro7e(ts Ment l*ty n' tt*t&'e to 'ef &lt 6*llf&lly Non (t*onC(o9o/er t*on of 3o,ernment 3en(*es *n re(o,ery Effe(t of 3r*(&lt&r l 'e-t rel*ef s(%eme In 'e;& te mon*tor*n3 of (o&rt ( ses n' 'el ys *n e:e(&t*on So(*o9/%ys*( l /ress&re -y some /eo/leC (t*,*t*es 2 r3et f&lf*ll*n3 &n'er 3o,t. /o,erty lle,* t*on /ro3r mme L (. of *n(ome 3ener t*on '&e to n t&r l ( l m*t*es n' ot%er &n(ert *nt*es

<Su66estions8 #) reduction techni>ues? Sm ll N!A lo ns <lo ns &/ to 4s.1 l (s= 4e/ y*n3 ( / (*ty ( n -e e s*ly 3 &3e' Mo-*l*5*n3 l*;&*' ( s% for meet*n3 t%e 'e-t *s not '*ff*(&lt Gr*tten reme'*es n' re/e t /erson l ( lls %el/ mostly Le3 l (t*on *s t*me (ons&m*n3 Infl&en(e of ot%er lo( l /ersons8 (ont (ts %el/f&l N!A9l r3er t% n sm ll -&t me'*&m < -o,e 4s.1 l ( n' &/ to D l (= +r n(% te m ( n t l. to t%e -orro6er n' 6or. o&t t%e re/ yment /ro3r mme #e-ts ( n -e settle' t%ro&3% Lo. A' l t Infl&en(e of tr 'e /rofess*on l (*r(les, sso(* tes &sef&l Me'*&m s*5e N!A <on(e 4s.D l (s n' &/ to 4s. 2D l (s= SGO2 n lys*s n' n lys*s of se(&r*ty 6*ll -e %el/f&l +r n(%es s%o&l' t .e ',*(e of H.O. from t*me to t*me G%et%er to % ,e le3 l (t*on or to 3o for (om/rom*se 2 .e le3 l ',*(e L r3e N!A <o,er 4s. 2D l (s= C lls for *nter,ent*on not only -y %e ' off*(e st ff -&t lso s/e(* l*sts n' sen*or m n 3ement Le3 l, te(%n*( l ',*(e ( lle' for S&//ort of st te 3o,t. n' S$C *n sell*n3 ssets 2%re t of 6*n'*n3 &/ (t*on 6o&l' -e &sef&l

Recovery 4e(o,ery m n 3ement (ons*st of t%e f&n(t*ons n' (t*,*t*es t%e - n. ( rr*es o&t (;&*re - (. 6% t t%e - n. % s ', n(e' 6*t% /r*n(*/ l mo&nt s 6ell s *nterest on t%e s me. So *t *s re(o,ery of 6% t t%e - n. % s ', n(e' to lo nee for ( rry*n3 o&t t%e*r /&r/oseC o-7e(t*,e of t .*n3 lo n. PR#C.SS #F R.C#2.RY If t%ree *nst llments re o&tst n'*n3, Not*(e t%ro&3% -r n(% off*(e !erson l ,*s*t n' meet*n3 If no res/onse Not*(e t%ro&3% ',o( te 2%o&3% no effe(t Cl *m t%ro&3% (o&rt *f / rty re 'y, of (o&rt settlement ot%er6*se After (om/let*on of form l*t*es + n. 6*ll 3et t%e or'er of se(&r*ty from (o&rt to re(o,er t%e*r '&e.

4bservation9findin6 M*ss*on 5ero N!A One %*stor*( l e,ent t% t o((&rre' '&r*n3 t%e l st ;& rter of t%e ye r 6 s t% t ll t%e st ff mem-ers of t%e - n.s too. &/on t%emsel,es of t%e*r o6n ,ol*t*on t%e t s. of re(o,ery n' 5ero N!A /ro7e(t 6 s l &n(%e' &n'er t%e 3&*' n(e of sen*or off*(ers of %e ' off*(e n' t%e '*re(tors of t%e - n.. #&r*n3 t%*s ye r 4+I % ' t*3%tene' t%e N!A norms for 'ef &lt from 180 ' ys to 90 ' ys. #es/*te t%*s t*3%tene' norms, t%e efforts /&t *n -y t%e st ff mem-ers on t%e*r o6n %el/e' t%e - n. effe(t s&-st nt* l re(o,er*es of N!As '&r*n3 t%e ye r n' lso /re,ent sl*// 3e to6 r's N!As. One 2*me Settlement s(%eme One t*me settlement s(%eme *s t%e /l n of reser,e - n. of In'* to (le r t%e - l n(e s%eet n' /&t re l*st*( /os*t*on of - n. 3 *nst (ommon /&-l*(. +efore t%*s s(%eme t%e mo&nt of /erform*n3 ssets 6 s ,ery %*3% *n - l n(e s%eet of t%e - n. n' *n re l t%e - n. 'oes not e rn *t. 2o re'&(e t%e N!A t%ro&3% re(o,ery of t%e*r m :*m&m /oss*-le mo&nt </r*n(*/ l= n' ot%er <*nterest, /en lty *nterest, (% r3es= 6r*te off from t%e - ' 'e-t reser,e. (he accounts, "hich are not #ettin# enefit of one time settlement

C ses of 6*llf&l 'ef &lt, fr &'s n' m lfe s n(e Lo n 6*t% t*e &/ rr n3ement for re(o,ery <e.3. lo ns , *l -y s l ry e rners= Lo ns , *l of or 3& r ntee' -y '*re(tors or -y (lose rel t*,es of '*re(tors or -y f*rmsC(om/ n*esC*nst*t&t*ons *n 6%*(% t%e '*re(tors re t%e *ntereste' or -y e:9 '*re(tors of res/e(t*,e &r- n (o9o/er t*,e - n.s Lo ns 3& r ntee' -y 3o,ernment <*n(l&'*n3 ( ses 6%ere 3o,ernment 3& r ntee % s -een *n,o.e' -&t not %onore' -y t%e 3o,ernment= Lo ns '&e from 3o,ernment 'e/ rtmentsC&n'ert .*n3s Lo ns &n'er 3o,ernment '*re(te' /ro3r mmes

'0&0$ $04# 45 S$/!1 2%o&3% I % ,e sele(te' t%e -*33est (o9o/er t*,e - n. for my st&'y n' no 'o&-t %ere I % ,e le rnt lot, -&t (om/ re' to n t*on l*5e - n., *ts net6or. *s sm ll. 2%e /ro(e'&re of (re'*t //r *s l, , r*o&s *nterest r tes on '*fferent s(%emes, re(o,ery /ro3r mmes re s/e(*f*( to 4 7.ot N 3 r*. S % . r* + n. Lt'. Also (re'*t m n 3ement *s 6*'e to/*(L I % ,e tr*e' to (o,er t%e most rel te' 6*t% *t.

"A3ARD 3est 5erfo(ans a%ar& recei*e& fro( Finance /inister Shree P.Chi&a()ara( , Chair(an Shree 2ithal)hai Ra&a&iya > 0eneral /ana'er Shree C.".+ara5ara

B0B'04*R )@1 4 7.ot #*str*(t Co9O/r t*,e + n. + l ns%eet 200D901 S%e.% r K.C. + n.*n3 2%eory n' !r (t*(es. Ne6 #el%*? )*. s /&-l*s%*n3 %o&se /,t. Lt'., 198D. +e'* H.L.L H r'*. r ).K. !r (t*( l + n.*n3 A', n(es. Ne6 #el%*? Inst*t&te of - n.*n3 st&'*es, 19ED.