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IN
OBJECTIVES
To study of priority sector. To analysis the priority sector lending activity in Central bank of India, Pachora. To analysis the progress made by the Central bank of India in various component of the priority sector lending.
RESEARCH METHODOLOGY
Research methodology is a process of collecting the information and help to find out the solution to the topic selection by the researcher. This Section includes the methodology which includes. it is a systematic way of presenting information.
Type of Research Descriptive research: Project contains Descriptive Research. Analytical research
Data Collection:
There are two types of data collection methods used for the preparation of the project which are as follows. Primary Data: Primary sources includes the data collection through observation, discussions, and personal interview with the officials of the credit department of the Cental Bank of India. Secondary Data: Basic method/sources of collecting secondary data as the Banks rules and regulations, procedure of loan sanctioning, Balance Sheet, referring books etc.
Sample Size
To study the proceeding three years Annual report of Central Bank of India. Data Analysis: It is done by use of calculations balance sheet, last three years balance sheet. INTERPRETATION OF DATA: The data carefully analyzed and short listed data is then interpreted in the form of charts and graphs for absolute clarity.
SCOPE OF STUDY
The project gives the theoretical as well as practical knowledge. This project is related to the bank loan proposals only. The scope of the study is limited.
Limitations
Every study or work, which is carried out, is full of information but there are certain limitations because of which we are unable to get the information. The limitations can be The information system is confidential and hence the banks records were not fully disclosed. Some of the records regarding the financial aspects were available only at the Head-Office, so these data were not available for the study.
Definition
Some areas or fields depending on its economic condition or economic importance are prioritized and are called priority sector i.e. industry, agriculture. And lending to these sectors refer to priority sector lending
CATEGORIES OF PRIORITY SECTOR Agriculture direct Small enterprises direct finance Small enterprises indirect finance Education loan Housing loan
Domestic banks (both public sector and private sector banks) 40 percent of NBC 18 percent of NBC No target
2012, 45207
advances
400
350 300 250 200 150 100 50 0 2011 2012 2013 advances
377
1,413
1,153
632
3,934
3,970
4,145
1500
1000 500 0 2011 2012 2013 Micro service Enterprises Sector Small services Enterprises Sector Micro manufacturing Enterprises Sector
2010-2011 2011-2012
21,077 22,568
house loan
23000 22500 22000 21500 21000 20500 20000 2011 2012 2013 house loan
2012-2013
2011-2012 2012-2013
3,257 4,575
education loan
5,000
4,500
4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 education loan
Findings
Credit to priority sector increased as on 31 march 2011 to 31 march 2013. Bank has exceeded the National Goal (18.00%) of Agriculture to ANBC by achieving 20.68% as on Mar13 Share of Micro Enterprises to total Micro & Small Enterprises has been decreased. Micro services Enterprises Sector increase from other than small services enterprise and micro manufacture enterprise. Micro manufacturing Enterprises Sector and Small services Enterprises Sector has been decreased.
Credit to other section such as housing loan education loan has been increased as on march 2011 to 2013.
Share of Micro Enterprises to total Micro & Small Enterprises has been decreased. Micro services Enterprises Sector increase from other than small services enterprise and micro manufacture enterprise. Micro manufacturing Enterprises Sector and Small services Enterprises Sector has been decreased.
Suggestion:
priority sectors are big source of revenue for banks, so bank should encourage also the unregistered units by providing more facilities like less paper work. Bank has to increase their credit limit and also decrease the installment amount. The best way to encourage lending to micro small industries is to improve the ability of existing institution to construct profitable and efficient lending programmers.
The bank must ensure a systematic follow up of the loans sanctioned in order to reduce non-performing assets. A special officer should be appointed for the recovery of loans. Interest rate, possessing fees, tenure, security and margin money all these are very important an all kinds of loans. So banks should revise all above keeping in view all other banks.
The process followed by the bank in sanctioning the loan is unmanageable; hence it is suggested to make the process easier in sanctioning the credit facilities to the priority sector.
Bank should appoint some marketing executives for this purpose who can give information of market and other banks. These marketing executives gives report head office directly for timely processing so that the market can be fully captured as early as possible.
Building awareness among small business people about the financial sources offering by bank.
Especially in the case of housing loan and education loan is must. So there is mutual benefits are possible While granting the loans the bank does not adhere with the margin.