Saraswat Co-operative Bank (2014-2015) Introduction to Banking A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank is the connection between customers that have capital markets. A bank is the connection between customers that have capital deficits and customers with capital surpluses. Due to their influence within a financial system and the economy, banks are highly regulated in most countries. Most banks operate under a system known as fractional reserve banking where they hold only a small reserve of the funds deposited and lend out the rest for profit. They are generally subject to minimum capital requirement which are based on the international set of capital standards, known as the Basel Accords. Banking in its modern sense evolved in the 14 th century in the rich cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had its roots in the 1 T.Y.BCOM (B&I) (SEM-5)
Transcript
Saraswat Co-operative Bank (2014-2015)
Introduction to Banking
A bank is a financial institution and a financial intermediary that accepts deposits and channels
those deposits into lending activities, either directly by loaning or indirectly through capital markets. A
bank is the connection between customers that have capital markets. A bank is the connection between
customers that have capital deficits and customers with capital surpluses.
Due to their influence within a financial system and the economy, banks are highly regulated in
most countries. Most banks operate under a system known as fractional reserve banking where they hold
only a small reserve of the funds deposited and lend out the rest for profit. They are generally subject to
minimum capital requirement which are based on the international set of capital standards, known as the
Basel Accords.
Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but
in many ways was a continuation of ideas and concepts of credit and lending that had its roots in the
ancient world. In the history of banking, a number of banking dynasties have played a central role over
many centuries.
DEFINITION:
In simple words, Banking can be defined as the business activity of accepting and safeguarding
money owned by other individuals and entities, and then lending out this money in order to earn a profit.
1T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
ORIGIN
The first bank was probably the religious temple of the ancient world wherein gold was stored in
the form of easy-to-carry compressed plates. Their owners justly felt that temples were the safest places
to store their gold as they were constantly attended, well-built and were sacred, thus deterring would-be
thieves. There are extent records of loan from the 18thcentury BC in Babylon that were made by temple
priests to merchants. Ancient Greece holds further evidence of banking. Greek temples as well as
private and civic entities conducted financial transactions such as loans, deposits, currency exchange, and
validation of coinage. There is evidence too of credit, whereby in return for a payments from a client, a
moneylender in one Greek port would write a credit note for the client who could “cash’’ the note in
another city, savings the client the danger of carting coinage with him on his journey. Ancient Rome
perfected the administrative aspect of banking and saw greater regulation of financial institution and
financial practices. Charging interest on loans and paying interest on deposits became more highly
developed and competitive. The origin of banking in India can be traced back to almost the Vedic
Period. The transformation from pure money lending to proper banking appears to have taken place
before the times of Manu, a great Hindu jurist, had devoted a section of his work explaining the deposits
and advances and he even laid down certain rules on rates of interest. Throughout Mauryan periods and
later on desi bankers played some role in the economy of the country. However, it was during the
Moghul period that indigenous bankers started playing a vital role in the lending money and financing of
the foreign trade and commerce. Banking during British period before independence. The first joint
stock bank, namely The General Bank of India was established in 1786. Later on Bank of Hindustan and
Bengal came into existence. Bank of Hindustan carried on business still 1906.
East India Company established the following three banks, namely The Bank of Bengal in 1809,
The Bank of Bombay in 1840, and Bank of Madras in 1843. They were collectively called Presidency
Banks and were well functioning independent units. The three banks established by the East India
Company were amalgamated in 1902 and a new bank called Imperial Bank of India.
2T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
INTORDUCTION OF SRARSWAT CO-OPERATIVE BANK
The symbol takes off from our earlier logo and visualizes a hexagon. It is an attempt to appeal to
younger and new customers without alienating the existing ones. The logo represents two caring hands in
the shape of a hexagon. The upper hand is of golden yellow colour. Yellow is the colour of warmth,
sunshine, cheer and happiness. Gold of wealth, prosperity and ever increasing value. They are the colours
of the Sun and symbolize life, youth and harmony. The lower hand is burgundy red, the colour of
excitement, strength and passion. It symbolizes aggressiveness and in the Indian context, Soubhagya.
Saraswat co-operative bank is an urban co-operative banking institution based in Maharashtra
In 1988; it was conferred with scheduled status by the Reserve Bank of India. It has 265 branches
nationwide.
The bank has observed good growth during the 2000s with its total business growing from 40
billion rupees in 2000 to 230 billion rupees in 2010 (approx. 5 billion US$).
"The Saraswat Co-operative Banking Society" was founded on 14th September 1918. Mr. J.K.
Parulkar became its first Chairman, Mr. N.B. Thakur, the first Vice-Chairman, Mr. P.N. Warde, the first
Secretary and Mr. Shivram Gopal Rajadhyaksha, the first Treasurer. These were the people with deep
and abiding ideals, faith, vision, optimism and entrepreneurial skills.
Deposits can be maintained in USD and EUR. We also consider FCNR deposits in other freely
convertible currencies on demand.
FCNR (B) deposits are accepted for minimum period of one year and a maximum of five years.
Can be opened jointly with another NRI.
Accounts can be opened/credited with remittances from abroad through normal banking channel/
personal cheque drawn on foreign bank accounts / transfer from existing NRE/FCNR
accounts/foreign exchange brought during visit to India.
Both principal and interest are payable in foreign currency. Hence there is no exchange loss on
principal and interest.
Resident Foreign Currency Account (RFC)
PIO’s and NRI are returning to settle permanently in India can open an RFC account.
Can be opened in USD and EURO.
Can be opened jointly with any other person eligible to open an RFC account.
Balances in NRE/FCNR accounts and foreign currency funds brought by the NRI at the time of
returning to India.
Assets maintained abroad can be freely invested in RFC account.
26T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
NRI Loans:
Personal Loans:
o We grant Rupee loans to NRI customers against:-
o Security of funds held in NRO Term Deposits and
o Security of funds held in NRE Term Deposits, FCNR (B) Deposits.
o Against the security of shares or other securities held in the name of the borrower.
o The loan shall be utilized for meeting the borrower’s personal requirements or for his own
business purposes; and
o The loan shall not be utilized, for any of the activities in which investment by persons resident
outside India is prohibited namely;
Business of chit fund,
Nidhi Company.
Trading in Transferable Development Rights (TDRs).
Investment in capital markets including margin trading and derivatives.
Repayment:
o Repayment shall be made by fresh inward remittances from outside Indiathrough normal
banking channels.
o Out of the local rupee resources in NRE/NRO/FCNR account of the borrower
o Through sales proceeds of shares or securities or immovable property against which such loan
was granted.
o Repayment can also be made by adjustment of the deposit.
Remittance Services:
Travel Related
Other Remittances
27T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
Money Transfer Services:
Money Gram
Saraswat Bank has tied up with MoneyGram for Inbound Global Remittances through Thomas
Cook (India) Ltd who is principal agent of M/s MoneyGram International Inc.USA. We have
launched MoneyGram product for inbound Global remittances at our 191 branches.
It is a person to person money transfer technology which enables a person to send money through
any of Network agents of MoneyGram International.
Quick, safe and cheap mode of send money to India. Beneficiary gets payment in India on real
time basis.
The remittance scheme conforms to the rules & regulation framed by Reserve Bank of India
under Money Transfer Service Scheme (MTSS)
Maximum amount of remittance that receiver can receive in a single transaction will not exceed
USD2500 or its equivalent in Indian rupees. Payment in cash to receiver will be made up to and
inclusive of Rs.50, 000/- (Rs. Fifty thousand only).
Any single beneficiary can receive 30 transactions in a calendar year.
Non-permissible Transactions under Money Transfer Service Scheme as per RBI stipulations.
Trade related remittances (export payment, payment of services, etc.)
Remittances towards purchase of property, investments;
Remittance for credit to NRE/FCNR accounts and
Remittance as donations, contributions to charitable organizations.
Benefits
This service is a boon to families of NRI’s as well as foreign students and foreign tourist visiting
28T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)India. Overseas workers who need to provide financial support to their families in India.
Receive money as cash in minutes.
No Bank account required.
Xpress Money
Saraswat Bank has entered into a strategic tie-up with UAE Exchange and Financial Services Ltd
for facilitating Global Money Transfer Service, Xpress Money, UAE Exchange and Financial
Services Ltd is the principal agent for UAE Exchange Centre LLC, Abu Dhabi, for facilitating
Xpress Money services in India. We have launched the Xpress Money product at our 191
branches.
It is a person to person money transfer technology which enables a person to send money through
any of Network agents of UAEFSL.
Quick, safe and cheap mode of send money to India. Beneficiary gets payment in India on real
time basis.
The remittance scheme conforms to the rules & regulation framed by Reserve Bank of India
under Money Transfer Service Scheme (MTSS)
Maximum amount of remittance that receiver can receive in a single transaction will not exceed
USD2500 or its equivalent in Indian rupees. Payment in cash to receiver will be made up to and
inclusive of Rs.50, 000/- (Rs. Fifty thousand only).
Any single beneficiary can receive 30 transactions in a calendar year.
Remitter fills up the Xpress Money form in an Xpress Money outlet abroad and pays the principal
amount and charges. Details are entered in the system, a receipt is given to the remitter with a
unique 10 digit XPIN, Sender informs beneficiary the XPIN, and the amount remitted.
Beneficiary visits the Receive Agent, fills up the Receive Form with details of XPIN and
produces a valid photo identity and address proof. The location confirms the transaction,
Beneficiary Receives Cash.
As soon as the beneficiary collects payment from our Bank, the remitter gets SMS about the
completion of transaction.29
T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
Non-permissible Transactions under Money Transfer Service Scheme as per RBI
stipulations.
• Trade related remittances (export payment, payment of services, etc.)
• Remittances towards purchase of property, investments.
• Remittance for credit to NRE/FCNR accounts.
• Remittance as donations, contributions to charitable organizations.
Benefits:
This service is a boon to families of NRI’s as well as foreign students and foreign tourist visiting
India. Overseas workers who need to provide financial support to their families in India.
• Receive money as cash in minutes.
• No Bank account required.
• No back-end charges.
30T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
CORPORATE BANKING
Corporate:
“Customer is not an intervention; he is the very reason for our existence.”
Your Bank realizes this. We provide a wide array of commercial and electronic Banking products
to corporate/ mid corporate/SME. Despite rapid growth in credit portfolio, Banks asset quality has shown
constant improvement. Your Bank has a wide exposure to various industries. We are providing various
facilities from funded to non -funded from short term to long term ensuring that you get finance as per
your needs.
Working Capital:
We are a Bank with a team of technically qualified competent customer driven relationship
managers possessing wide industry experience in various segments Our Bank has taken lot of efforts to
understand customers & empathizing with their needs.
We can offer you working capital finance by way of cash credit or loans suitably structured to
your need and risk profile in consortium or as a lead banker. Our working capital solutions are based on
financial, quantitative & qualitative evaluation of your business through our technically qualified experts.
31T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
Corporate Loan:
We are happy to inform you that Bank has introduced a new scheme of Corporate Loan for our
existing and prospective Private limited / Public limited company customers. The scheme will help us to
meet the financial need of our Private limited / Public limited company without involving acquisition of
fixed assets. The scheme will induce our existing borrowers who are proprietary concern or partnership
firm to convert into corporates.
Guidelines for sanction and conduct of the Corporate Loan are as under:
Exposure Limit:
Minimum loan amount will be Rs. 50.00 lacs Maximum Loan amount would be Rs.10.00 crores.
Eligibility:
Existing customers with credit rating B, A and Prime are eligible. Request for non-
customers may be considered on selective basis and in such cases opinion report from the
existing bankers and short
C E D before disbursal is must. Also the existing banker must be suitably advised of the
disbursal. In case of corporate loan above Rs. 100.00 lacs full-fledged C E D should be
undertaken.
Rate of Interest:
To be linked to PLR and spread as applicable to the credit rating of the account may be
considered and rate of interest @ 1% above the applicable interest rate is charged.
Repayment Period:
3 years maximum However in deserving cases sanctioning authority may extend the repayment
period maximum upto 5 years. Quarterly/half yearly or even bullet repayment may be permitted,
if the cash flow so justify.
Processing Fees:
As applicable to term loan for existing/ prospective borrowers.
Collateral Security:
Personal guarantee of promoter directors, pledge of equity shares of promoters (upto an amount
of Rs. 20.00 lacs), charge on unencumbered assets of the corporate, independent tangible security
of promoter director/s etc. should also be insisted and obtained wherever possible.
Documents:32
T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)As applicable to Term Loans in consultation with Legal Department/Legal advisers. Charge to be
registered with ROC as usual.
Term Loan
Our Bank provides term finance/term loans for business expansion, up-gradation of existing
facilities etc. to ease the pressures on margins of the company .The Bank is providing structured
term loans to meet your short term as well as long term funding requirements. We offer specific
solution so as to match repayment with your cash flows to repay the debt thereby enhancing your
profitability.
Export Financing - Pre and Post Shipment:
Export Credit: If you are a eligible exporter
Saraswat Bank offers you Pre Shipment Credit facilities and Post Shipment Credit
Facilities
Pre Shipment Credit facilities:
• We offer Pre-shipment credit by way of Packing Credit enabling you to finance
purchase/import of raw materials, processing and packing of the goods meant for exports.
• We offer Pre-shipment credit by way of Packing Credit enabling you to finance
purchase/import of raw materials, processing and packing of the goods meant for exports.
• Interest rate is linked to regular export credit facility which is 10.00% p.a. for period
upto 90 days or production cycle period with maximum of 180 days.
Post shipment Credit facilities
Post shipment credit facility is offered to an exporter to finance export sales receivables after the
date of shipment of goods till the date of realization of export proceeds. We offer our client a
choice of the following services :
• Interest rate is linked to regular export credit facility which is 10.00%p.a. for period upto
90 days from bill date.
• Negotiation /Payment /Acceptance of documents under letter of credit.
• Purchase/ discount of export document under letter of credit.
• Advance against export bills sent on collection basis.
33T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015) Import Finance
Bank is providing import finance to its valuable customers by providing letter of credit facility for
its customers to purchase their raw materials. These are generally provided for 90 to 180 days.
Bank Guarantee
Bank issues various types of guarantees - performance, financial, bid bond, tenders, customs etc.
for its customers. Our guarantees are well accepted by all government agencies including
Customs, Excise, Insurance Companies, Shipping Companies and all major corporates.
Bill Discounting
We are offering facilities which are customized to suit your requirement for short term finance
from the date of sale to date of receipt of payment thereof. Our processes are simple, allowing
you to establish single window contact with competent dedicated personnel at any of our
branches as per your convenience.
Letters of Credit (Inland & Foreign)
Bank provides letter of credit facility for its customers to meet their trade purchases. These are
generally provided for 3-6 months depending upon your trade cycle. Apart from this we provide
Import Letter of Credit for importing machinery or capital goods. Such Letter of Credits are for
tenure ranging from 1-3 years depending upon the tenure
Property Loan
Saraswat Bank offers loan facility for acquiring another asset / property based on the following
conditions:-
Eligibility:
• Salaried employees with minimum net salary of Rs. 10000 pm (Income of spouse may
be added)
• Professionals, self - employed and others who are income tax assesse having net annual
taxable income of Rs. 150000/- for at least 3 years continuously.
• Firms / companies having net annual taxable income of Rs. 1.50 Lakhs per annum and
in operation for last 3 years making cash profit for last 3 years.
Limit of Loan:
• Minimum - Rs.2 lakhs
• Maximum - Rs. 50 Lakhs
Basis of Advance:34
T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)• 25 times of net salary in case of salaried person Or
• 3 times of net cash accruals.(Net of tax and drawing plus depreciation) Or
• 60% of agreement cost (If the property is less than 3 years old.). In other cases, 60%
of value as per valuation report. a,b,c Whichever is lower
Rate of Interest:
The property loans are rated as per the Credit Rating model followed in our Bank and a good
rating can get you a better interest rate. They are linked to the Prime Lending Rate (PLR).
Repayment Period:
Term Loan - Maximum 5 years
Cash Credit - with reducing limit (in 60 monthly installments) subject to renewal every year.
Security:
Equitable Mortgage of Residential, commercial or industrial property.
Guarantor:
Need not be obtained however in case of firms, companies, guarantee of partners, directors to
be obtained.
Processing Charges:
1% of loan amount.
Documents Required:
• I.T.Returns for last three years, salaries slip for last 3 months.
• For salaried employees income proof such as Form No.16 along with salary certificate
from employer
• Original Title Deeds of the property offered for mortgage.
35T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)Udyogini
Saraswat Bank introduces a scheme for women entrepreneurs of today which takes care of their
financial requirements allowing them to concentrate on their business growth . With lot of
incentives/discount being offered and minimum processing charges which are enumerated below
,you may contact our nearest branch and apply:
1) Micro Enterprises – Here the finance provided will be upto Rs 2.00 lacs
2) Small Scale Enterprises – Here the finance provided will be above Rs 2.00 lacs upto Rs. 50.00
lacs.
3) Medium Enterprises – Here the finance provided will be above Rs. 50.00 lacs upto a maximum
limit of Rs 100.00 lacs.
Micro Finance - Self Help Groups : (Bachat Ghat)
Since inception the cause of the Small Man lay at the core of Bank’s heart. Bank has grown
manifold but basic values have remained the same. Saraswat Bank has therefore launched a
scheme for self help groups so as to help them raise the income levels and improve living
standards of their members. The Bank aims at teaching the members of these groups to save and
to borrow responsibly.
The Bank caters to the self-help groups who are involved in following activities
1) Selling fruits, vegetables, milk, fish, etc.
2) Making of brooms, basket weavers, and other bamboo products, etc.
3) Any other activities viz. plumbing, hairdressing, electrician including flowers/vegetable
growers, spices and papad making etc.
Eligibility Minimum- 10 members; Maximum -20members Operative Savings
A/C for minimum 6 months.
Quantum of Finance Upto 4 times the amount in savings account Or
36T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
Maximum 2 lacs per group
Interest Rate PLR-1%
Security Guarantee of Group Members and Third party guarantee on case to
case basis.
Repayment period Not more than 60 months
Processing Fees Reasonable
Shareholding Nominal Membership
Small & Medium Enterprises (SMEs)
For a business on the growth phase with a wide range of opportunities to explore, timely
availability of credit is essential to scale new heights. At Saraswat Bank we see ourselves as
partners to Clients business enabling them to focus on their business needs.
Bank shall try to dispose of your application for a credit limit or enhancement in existing
credit limit up to Rs 5 lakhs within two weeks, and for credit limit above Rs 5 lakhs and upto Rs
25 lakhs within four weeks, and for credit limit above Rs 25 lakhs within 8 weeks from the date
of receipt provided your application is complete in all respects and is accompanied by documents
as per check list provided.
Traders
37T.Y.BCOM (B&I) (SEM-5)
Our Bank provides credit facilities to Retail Traders in the form of
Working Capital
Property Loan
Saraswat Co-operative Bank (2014-2015) Trade Finance
Saraswat Bank has emerged as a leading co-operative bank in providing trade finance
services.
The Bank is Authorized Dealer in Foreign Exchange since 1979. Our bank provides a
gamut of products for both exporters and importers.
The International Banking Division plays an active role in Forex operations through its
ten Forex Centers.
Correspondent Banking relations with 430 centers of various banks spread over 65
countries.
Export Facilities
Export Credit
Advising of Letters of credit.
Export bills on collection basis.
Export Credit
We assist exporters to compete in the International Markets by extending fund
based/non fund based credit facilities. We offer credit facility to exporters by way of,
Pre-shipment credit finances:- working capital advance granted to exporters to facilitate
execution of export order
Advising of Letters of credit
Export letters of credit received by Saraswat Bank in your favour are advised to you
promptly.You may instruct your overseas buyer to utilize our services for faster
advising of export letters of credit to you. We also ensure prompt advising of the
amendments to the export letters of credit.
Export bills on collection basis
Saraswat Bank handles the export bills on collection basis with accuracy and speed.
Documents are dispatched for collection within 24 hours.
Handling of export bills are subject to UCPDC/URC as the case may be and FEMA
provisions and FEDAI rules.
38T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
Import Facilities
Import Letter of Credit
Import Bill Received for Collection
Buyers Credit
Import Letter of Credit
Opening of Import Letter of Credit in major permitted currencies, in favour of
overseas suppliers across the globe.
Letters of credit are advised through major International Banks.
Arrangements are also in place to add confirmation of advising Banks to the letters
of credit on your or supplier’s request.
For faster advising of letter of credit we have the facility of SWIFT.
Import Bill Received for Collection
We handle import bills received on collection basis sent by your Overseas Suppliers
through a Bank, on the basis of documents against payment or on acceptance.
Buyers Credit
Saraswat Bank makes arrangement for Short Term Buyer’s Credit for Import Trade
transaction.
39T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
INTEREST RATES
Saraswat Bank offers you attractive interest rate on loans and deposits towards domestic and
NRI customers. Deposit Scheme Interest Rates w.e.f. 1st July 2014.
The Bank has decided to revise interest rates on term deposits with effect from 1st July 2014.
A) Domestic Term Deposits:
For Deposits below Rs. 1 crore:
Tenor ROI ForGeneral Public(% p.a)
ROI ForSenior Citizens(% p.a)
7 days to less than 15 days 5.00 5.00
15 days to 179 days 7.00 7.00
180 days upto 1 year 8.00 8.00
Above 1 year upto 24 months 9.00 9.25
Above 24 months upto 36 months 8.50 9.00
Above 36 months upto 60 months 9.00 9.25
Above 60 months upto 84 months 8.00 8.50
For Single Term deposit of Rs. 1 crore and above but below Rs. 3 crore:
Tenor ROI ForGeneral Public(% p.a)
ROI ForSenior Citizens(% p.a)
7 days to less than 15 days 5.00 5.00
15 days to 179 days 8.00 8.00
180 days upto 1 year 8.50 8.50
Above 1 year upto 24 months 9.00 9.25
Above 24 months upto 36 months 8.50 9.00
Above 36 months upto 60 months 9.00 9.25
40T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
For Single term deposit of Rs. 3 crore & above:
TenorROI For General Public(% p.a)
ROI ForSenior Citizens(% p.a)
7 days to less than 15 days 5.00 5.00
15 days to 179 days 8.00 8.00
180 days upto 1 year 8.50 8.50
Above 1 year upto 24 months 9.00 9.25
Above 24 months upto 36 months 8.50 9.00
Above 36 months upto 60 months 9.00 9.25
Above 60 months upto 84 months 8.00 8.50
NRI DEPOSIT RATES
A) NRO deposits rate:
For Deposits below Rs. 1 crore:
Tenor
ROI For
General Public (For all categories)
(% p.a)
7 days to less than 15 days 5.00
15 days to 179 days 7.00
180 days upto 1 year 8.00
Above 1 year upto 24 months 9.00
Above 24 months upto 36 months 8.50
Above 36 months upto 60 months 9.00
Above 60 months upto 84 months 8.00
41T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
For Single term deposit of Rs. 1 crore & above but below Rs. 3 crore:
Tenor
ROI For
General Public (For all categories)
(% p.a)
7 days to less than 15 days 5.00
15 days to 179 days 8.00
180 days upto 1 year 8.50
Above 1 year upto 24 months 9.00
Above 24 months upto 36 months 8.50
Above 36 months upto 60 months 9.00
Above 60 months upto 84 months 8.00
For Single term deposit of Rs. 3 crore & above:
Tenor
ROI For
General Public (For all categories)
(% p.a)
7 days to less than 15 days 5.00
15 days to 179 days 8.00
180 days upto 1 year 8.50
Above 1 year upto 24 months 9.00
Above 24 months upto 36 months 8.50
Above 36 months upto 60 months 9.00
Above 60 months upto 84 months 8.00
42T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
C) NRE Term Deposits:
Tenor
ROI for NRE Term Deposits
(For all categories)
(% p.a.)
1 year 8.00
Above 1 year upto 24 months 9.00
Above 24 months upto 36 months 8.50
Above 36 months upto 60 months 8.50
INTEREST RATE ON ADVANCES
A
.
1
.
The Board has revised the PLR to 14.50% p.a.
2
.
Interest Rate structure applicable to all Commercial exposure above Rs. 50.00 lacs
(Exposure = O/s Bal. of existing Term Loans undisbursed portion of Term Loan + the
sanctioned or O/s limits of Working Capital Facilities whichever is higher + the
sanctioned or O/s limits of non-funded limits whichever is higher will be as under:
Marks Scored in Credit Rating Rating Code Interest Rate applicable
90 and above PRIME PLR
80 to 89 A PLR + 0.50%
70 to 79 B PLR + 1.00%
55 to 69 C PLR + 2.00%
40 to 54 D PLR + 3.00%
Below 40 E PLR + 4.00%
The interest rate @ PLR -1% to all Small Business Loans including Loan under Swift
Loan Scheme upto Rs. 50.00 lacs as approved by the Board of Directors, in their meeting
held on 28.05.2011, will continue.
4
.
In case where the total credit exposure is exceeding the threshold limit of Rs. 50.00 lacs
and the rating is not done, the interest rate applicable wills PLR+2% (except in cases
43T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)where lower interest rate has been specifically approved).
5
.
As regards advance under Property loan scheme and to Real Estate Sector the rate of
interest @ PLR + 2% irrespective of the amount of advance, will continue (except in
cases where lower interest rate has been specifically approved).
In view of the upward change in PLR, interest rates of all the commercial advances
including advance under Gupt Dhan Yojana and Swift Loan scheme irrespective of the
amount of limits enjoyed, will go up by 0.25% over the existing rate with effect from
16.08.2011.
For financing in Foreign Currency, rate of interest will be as per RBI Stipulations.
B. Interest on Advances under the Swift Credit Scheme PLR - 1.00% p.a.
C
.
Interest on advances under Property loan scheme and Real estate -PLR +2.00%
D
.
Interest on Advances against tangible Securities:
Category of Loans Rate of
Interest
Loan against pledge of tangible securities viz. RBI Bonds, Bonds, NSCs, Units of
UTI, LIC, IVP, etc.
PLR
Loan against gold ornaments PLR
44T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
SERVICES
Saraswat Co-operative Bank provides information of various Value added services that the Bank
provides for its esteemed Customers under this section.
VISA Debit Card
To add to your convenience, your Bank has tied up with VISA for issuing Debit Card. VISA has a
long-standing name in the banking industry in India as well as abroad. Visa is a reliable, international
brand. Debit Card is basically a convenience card which can be used at a POS for making purchases at
Merchant Establishments. This card can also be used as an ATM card for withdrawing cash at all the
ATMs bearing VISA logo in India and aboard.
Debit Cards:
This card can be used as an ATM card for withdrawing cash at the following ATMs:
1. Saraswat Bank ATMs
2. NFS ATMs (shared network)
3. Visa enabled ATMs
Debit Card looks similar to a credit card, bearing a Visa logo, and can be used wherever Visa logo is
displayed.
Debit card can be used at Domestic as well as International ATMs, POS machines bearing the Visa logo
at merchant establishment and for Purchases/Ticket Booking through Internet that use a secured e-
45T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
Commerce Payment Gateway.
Easy Pay:
Here is one more exciting facility your Bank has offered to relieve you, our esteemed client,
from spending your valuable time standing in a queue for routine utility bill payments.
All you have to do is to walk into any of our branch and register yourself under : Easy Pay"
scheme for all your recurring utility bill payments such as Telephone, Electricity Bills, Cellular Phone
Bills, Insurance Premium & many more. Once you are registered all your future bills will be paid
automatically through your bank account with us.
Mobile Banking – GO MO
"Go-Mo" is a comprehensive Mobile Banking platform that will enable customers to manage
their own accounts with incredible ease from wherever they have mobile connectivity. The product will
give customers greater ease of use and a higher degree of convenience through an intuitive and design
rich interface.
The fund transfer facility offered through mobile banking is provided through the NFS Switch of
the National Payments Corporation of India (NPCI). This fund transfer facility comes under Immediate
Payment Service (IMPS) of NPCI. IMPS facilitate customers to use mobile instruments as a channel for
accessing their bank accounts and navigate interbank fund transfers in a secured manner with immediate
confirmation features. It offers an instant, 24X7, interbank electronic fund transfer service through
mobile phones.
46T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
Features of Go-Mo:
1. Check balances of your savings and current accounts
2. View last five transactions
3. Request for Cheque Book
4. Account Statement on email id registered with the Bank
5. Stop Payment of Cheque
Other Bank (NFS) Network
Bank has joined National Financial Switch (NFS) on 15th October 2010 for providing ATM
access to our customers across India. NFS is the network which facilitates routing of ATM transaction
through inters connectivity between banks’ switches thereby enabling customers to utilize any ATM of
a connected bank. Under this arrangement wide network of ATMs of Nationalized, Foreign, Private
and Co-operative Banks are available to our customers using our Bank’s cards, i.e. our ATM card as
well as the VISA debit card.
Internet Banking
Saraswat Bank offers net banking facility to its customers to enable banking bank in the easy
confines of your home /residence and enjoy the following facilities :
Functionalities offered on Internet Banking:
1. View Linked Accounts Details
2. Statement of Accounts
3. Mini Statements
4. Status of Cheque issued
5. View Loan Account details
Other Miscellaneous Services:
1. Fund transfer through RTGS NEFT for Internet Banking Users
2. Standing Instructions
47T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)3. Cash Pick Ups
4. Nomination of Deposits
TREASURY MANAGEMENT
Unified Treasury:
The Saraswat Co-operative Bank Ltd. is the first Urban Co-operative Bank to set up a ‘Unified
Treasury’ incorporating Foreign Exchange desk and Money Market desk. The Treasury is located in the
city of Mumbai and has a well-equipped dealing room with ‘Reuters’, ‘Bloomberg’ and ‘Congenic’
systems. All the treasury operations are completely computerized.
The Treasury complies with the statutory obligations of maintaining C.R.R. and S.L.R. for the
Bank apart from managing overall funds. The Treasury also publishes market update every fortnight for
private circulation which is available on this website.
Money/Debt Market:
Money Market & Debt Market Desk this desk deals in the Government securities, Treasury Bills
and money market instruments. The Bank also deals in retailing of Government Securities and other debt
market securities.
Treasury update fortnight ended- 11th July 2014
Liquidity watch
Liquidity Indicators Open High Low Close
CBLO (%) 8.70 9.15 6.15 6.15
CALL (%) 9.00 9.25 6.90 9.00
(Rs in Cr) As on 11th July’14 As on 4th July’14
48T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
RBI Repo at 8.00% 12,174.00 2,025.00
RBI Reverse Repo at 7.00% 535.00 6,184.00
Money market (%)
T-Bill Cut-off
Current Previous
91 – Days 8.5201 8.5619
182- Days 8.6395 8.6613
364 – Days 8.6722 8.6959
Certificate of Deposits Yield 11th July’14 4th July’14
3-Month 8.65 8.55
1-year 8.94 8.95
Commercial Paper Yield 11th July’14 4th July’14
3-Month 8.93 8.85
1-year 9.39 9.35
DEBT MARKET
1. Government securities (%):
Security Open High Low Close
CG 2019 (5- Year) 8.64 8.66 8.56 8.65
CG 2024 (10-Year) 8.74 8.78 8.66 8.77
CG 2044 (30-Year) 8.79 8.83 8.70 8.83
49T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
2. Inflation:
WPI-Inflation CategoryY.O.Y
(%)
Previous Month
figures (%)
Same period last
year (%)
Period
Month of June
2014
All
Commodities 5.43 6.01 5.16
Foreign Exchange Market
Treasury update-fortnight ended 11th July 2014
1. Rupee-dollar movement & forward premia:
Currency Open High Low Close
USD/INR 60.05 60.30 59.52 59.93
6 – Month Forward Premia (%) 8.88 8.97 8.39 8.46
1 – Year Forward Premia (%) 8.50 8.66 8.12 8.17
2. Major cross currencies
Currency Open High Low Close
EUR/USD 1.3645 1.37 1.3574 1.3608
USD/YEN 101.42 102.26 101.04 101.36
GBP/USD 1.7018 1.7179 1.7006 1.7122
3-Month LIBOR (%) 0.2310 0.2350 0.2310 0.2340
50T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
CORPORATE SOCIAL INITIATIVES & RESPONSIBILITY
(CSR) - "YOUR OWN BANK!”
Your Board of Directors believes that every organization must have over-arching and
over-the horizon goals. In your own Bank, Corporate Social Responsibility (CSR) is not a new
fashion but it is an old creed. Our founders and their successors understood and underscored the
principle that a cooperative institution must always stay connected with the needs and aspirations of
the society at large. CSR constitutes the umbilical cord that connects your bank to the society. Today
the Bank is ninety five year old but the importance of CSR was understood presciently and
intuitively by the leaders of your Bank in its infancy itself. The corporate memory is resplendent
with many examples of the early awareness of CSR in your Bank. We at the Board of Directors can
never forget the laudable gesture of late WamanraoVarde and his associates on the Board then in
spontaneously responding to the grave scarcity of food grains during the Second World War and in
starting on behalf of your Bank a ration shop at Girgaum in Mumbai to make available foodgrains to
all. At that time, Saraswat Bank was a wholly community Bank and no Saraswat of whatever calling
ever asked late WamanraoVarde and his colleagues as to how he could venture into opening of a
ration shop when the Banking Law, the Cooperative Law and even the Bye-laws of the Bank had no
provision whatsoever to facilitate its opening. This was so because all members of the community
always understood that a co-operative institution must always have a social purpose..
51T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
Reaching out to the needy:
As part of CSR, at the macro-level your Board of Directors took serious cognizance of
the plight of farming community and continuing suicides of farmers and with a view to instilling
hope among farmers, we supported the Project Hope' of late Baba Amte's MaharogiSewaSamiti at
village Mulgavan, Taluka - JhariJamini, Distt. Yeotmal. We did so with a substantial donation of Rs. 1.00
crore to this project, where experts and volunteers are engaged in offering hope and succor to thousands of
farmers by building check dams and initiating farmers into newer cultivation practices enabling them to
bolster income generation and income supplementation.
52T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
Donation to Marathwada:
Your bank donated Rs 1 crore towards the purchase and installation of water tanks in drought affected villages in
Marathwada/ Vidarbha areas of the State of Maharashtra. The Donation was given to Rashtriya Sarvangin
GramvikasSanstha; the institution is associated with Marathwada Pariwar.
Assistance to Self Help Group:
Your bank believes in giving strength to the wings of people who are ambitious & have dreams in their eyes. Saraswat Bank provided assistance in the form of micro-finance to the low income groups & Women Self-help groups to encourage them to become financially independent. Bank's Chairman Shri
53T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)E.K Thakur has provided financial assistance in the form of Loan to more than 15000 to Micro and Small Scale industries.
Encouraging the brave:
Ms Krishna Patil the third woman to successfully complete the Mt. Everest Expedition was granted loan
waiver for Rs 30 lakhs in recognition of her bravery, grit, determination and never die enthusiasm.
A young student all of 19 years pursuing graduation but with different dreams, with a dream in her eyes to scale
the world's highest peak was granted a loan of Rs. 30 lakhs by the bank to support her endeavour.This assistance
was important to her in the background of refusal by other sources where she had attempted for financial
assistance. The loan was granted to her in a record 6 days in April 2009 after her father Shri. Madhav
Patil, an existing client of our bank, approached the bank with the confidence that his 'Own Bank' would
definitely assist his daughter in pursuing her dream.
54T.Y.BCOM (B&I) (SEM-5)
Saraswat Co-operative Bank (2014-2015)
SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves specifying
the objective of the business venture or project and identifying the internal and external factors
that are favorable and unfavorable to achieve that objective. The technique is credited to Albert
Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from
Fortune 500 companies.
STRENGTH :
It specifies the attributes of the person or company that are helpful to achieve the objective(s).
Saraswat Bank is No. 1 amongst the 1,700 UCBs in the Urban Cooperative Banking Sector in
India with over 90 years of cumulative banking experience.
High standard regulatory environment.
Flexible work permit system and good quality staff offering personal client service.
Bank has implemented Core Banking Solution (CBS) in the Bank. This solution primarily aims at
having a unified customer approach.
Bank is a member of the Credit Information Bureau India Ltd. (CIBIL). CIBIL is India’s first
credit information bureau and is a repository of factual information on the credit history and
repayment records of millions of commercial and individual borrowers.
WEAKNESS:
Refusal to dilute stake in PSU banks: The government has refused to dilute its stake in PSU
banks below 51% thus choking the headroom available to these banks for raining equity capital.
Lack of competitive differential with other offshore centers
Rigid legislation that inhibits business development
