Date post: | 04-Apr-2018 |
Category: |
Documents |
Upload: | sashmita-pradhan |
View: | 229 times |
Download: | 0 times |
of 21
7/29/2019 Project Home Loan
1/21
:BANKING INDUSTRY:
A bank is afinancial institutionand afinancial intermediarythat acceptsdepositsand
channels those deposits intolendingactivities, either directly by loaning or indirectly
throughcapital markets. A bank is the connection between customers that have capital
deficits and customers with capital surpluses.
Banks act as payment agents by conductingchecking or current accountsfor customers,
payingchequesdrawn by customers on the bank, and collecting cheques deposited to
customers' current accounts. Banks also enable customer payments via other payment
methods such asAutomated Clearing House(ACH),Wire transfersortelegraphic
transfer,EFTPOS, andautomated teller machine(ATM).Banks borrow money by accepting funds deposited on current accounts, by accepting
term deposits, and by issuing debt securities such asbanknotesandbonds. Banks lend
money by making advances to customers on current accounts, by makinginstallment
loans, and by investing in marketable debt securities and other forms of money lending.
Banks provide different payment services, and a bank account is considered
indispensable by most businesses and individuals. Non-banks that provide payment
services such as remittance companies are normally not considered as an adequate
substitute for a bank account.
ChannelsBanks offer many different channels to access their banking and other services:
Automated Teller Machines
Abranchis a retail location
Call center
Mail: most banks accept cheque deposits via mail and use mail to communicate
to their customers, e.g. by sending out statements
Mobile bankingis a method of using one's mobile phone to conduct banking
transactions
Online bankingis a term used for performing multiple transactions, paymentsetc. over the Internet
Relationship Managers, mostly for private banking or business banking, often
visiting customers at their homes or businesses
Telephone bankingis a service which allows its customers to perform
transactions over the telephone withautomated attendantor when requested
withtelephone operator
http://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Automated_Clearing_Househttp://en.wikipedia.org/wiki/Automated_Clearing_Househttp://en.wikipedia.org/wiki/Automated_Clearing_Househttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Telegraphic_transferhttp://en.wikipedia.org/wiki/Telegraphic_transferhttp://en.wikipedia.org/wiki/Telegraphic_transferhttp://en.wikipedia.org/wiki/Telegraphic_transferhttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Installment_loanhttp://en.wikipedia.org/wiki/Installment_loanhttp://en.wikipedia.org/wiki/Installment_loanhttp://en.wikipedia.org/wiki/Installment_loanhttp://en.wikipedia.org/wiki/Automated_Teller_Machinehttp://en.wikipedia.org/wiki/Automated_Teller_Machinehttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Call_centerhttp://en.wikipedia.org/wiki/Call_centerhttp://en.wikipedia.org/wiki/Mobile_bankinghttp://en.wikipedia.org/wiki/Mobile_bankinghttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Automated_attendanthttp://en.wikipedia.org/wiki/Automated_attendanthttp://en.wikipedia.org/wiki/Automated_attendanthttp://en.wikipedia.org/wiki/Switchboard_operatorhttp://en.wikipedia.org/wiki/Switchboard_operatorhttp://en.wikipedia.org/wiki/Switchboard_operatorhttp://en.wikipedia.org/wiki/Switchboard_operatorhttp://en.wikipedia.org/wiki/Automated_attendanthttp://en.wikipedia.org/wiki/Telephone_bankinghttp://en.wikipedia.org/wiki/Customer_relationship_managementhttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Mobile_bankinghttp://en.wikipedia.org/wiki/Call_centerhttp://en.wikipedia.org/wiki/Branch_(banking)http://en.wikipedia.org/wiki/Automated_Teller_Machinehttp://en.wikipedia.org/wiki/Installment_loanhttp://en.wikipedia.org/wiki/Installment_loanhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Banknoteshttp://en.wikipedia.org/wiki/Term_deposithttp://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Telegraphic_transferhttp://en.wikipedia.org/wiki/Telegraphic_transferhttp://en.wikipedia.org/wiki/Wire_transferhttp://en.wikipedia.org/wiki/Automated_Clearing_Househttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Deposit_accounthttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Financial_institution7/29/2019 Project Home Loan
2/21
Video bankingis a term used for performing banking transactions or professional
banking consultations via a remote video and audio connection. Video banking
can be performed via purpose built banking transaction machines (similar to an
Automated teller machine), or via avideo conferenceenabled bank branch
clarification
Business model
A bank can generate revenue in a variety of different ways including interest, transaction
fees and financial advice. The main method is via chargingintereston the capital it lends
out to customers.[citation needed]
The bank profits from the difference between the level of
interest it pays for deposits and other sources of funds, and the level of interest it charges
in its lending activities.
This difference is referred to as thespreadbetween the cost of funds and the loan interestrate. Historically, profitability from lending activities has been cyclical and dependent on
the needs and strengths of loan customers and the stage of theeconomic cycle. Fees and
financial advice constitute a more stable revenue stream and banks have therefore placed
more emphasis on these revenue lines to smooth their financial performance.
In the past 20 years American banks have taken many measures to ensure that they
remain profitable while responding to increasingly changing market conditions. First, this
includes theGramm-Leach-Bliley Act, which allows banks again to merge with
investment and insurance houses. Merging banking, investment, and insurance functions
allows traditional banks to respond to increasing consumer demands for "one-stop
shopping" by enabling cross-selling of products (which, the banks hope, will alsoincrease profitability).
Second, they have expanded the use ofrisk-based pricingfrom business lending to
consumer lending, which means charging higher interest rates to those customers that are
considered to be a higher credit risk and thus increased chance ofdefaulton loans. This
helps to offset the losses from bad loans, lowers the price of loans to those who have
better credit histories, and offers credit products to high risk customers who would
otherwise be denied credit.
Third, they have sought to increase the methods of payment processing available to the
general public and business clients. These products includedebit cards, prepaid cards,
smart cards, andcredit cards. They make it easier for consumers to conveniently maketransactions and smooth their consumption over time (in some countries with
underdeveloped financial systems, it is still common to deal strictly in cash, including
carrying suitcases filled with cash to purchase a home).
However, with convenience of easy credit, there is also increased risk that consumers will
mismanage their financial resources and accumulate excessive debt. Banks make money
from card products through interest payments and fees charged to consumers and
http://en.wikipedia.org/wiki/Video_bankinghttp://en.wikipedia.org/wiki/Video_bankinghttp://en.wikipedia.org/wiki/Video_conferencehttp://en.wikipedia.org/wiki/Video_conferencehttp://en.wikipedia.org/wiki/Video_conferencehttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Net_interest_spreadhttp://en.wikipedia.org/wiki/Net_interest_spreadhttp://en.wikipedia.org/wiki/Net_interest_spreadhttp://en.wikipedia.org/wiki/Economic_cyclehttp://en.wikipedia.org/wiki/Economic_cyclehttp://en.wikipedia.org/wiki/Economic_cyclehttp://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Acthttp://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Acthttp://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Acthttp://en.wikipedia.org/wiki/Risk-based_pricinghttp://en.wikipedia.org/wiki/Risk-based_pricinghttp://en.wikipedia.org/wiki/Risk-based_pricinghttp://en.wikipedia.org/wiki/Default_(finance)http://en.wikipedia.org/wiki/Default_(finance)http://en.wikipedia.org/wiki/Default_(finance)http://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Smart_cardhttp://en.wikipedia.org/wiki/Smart_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Smart_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Default_(finance)http://en.wikipedia.org/wiki/Risk-based_pricinghttp://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Acthttp://en.wikipedia.org/wiki/Economic_cyclehttp://en.wikipedia.org/wiki/Net_interest_spreadhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Video_conferencehttp://en.wikipedia.org/wiki/Video_banking7/29/2019 Project Home Loan
3/21
transaction feesto companies that accept the credit- debit - cards. This helps in making
profit and facilitates economic development as a whole.
Types of banks
Banks' activities can be divided intoretail banking, dealing directly with individuals and
small businesses;business banking, providing services to mid-market business; corporate
banking, directed at large business entities;private banking, providing wealth
management services tohigh net worth individualsand families; andinvestment banking,
relating to activities on thefinancial markets. Most banks are profit-making, private
enterprises. However, some are owned by government, or arenon-profit organizations.
PRODUCTS:
Retail banking
Checking account Savings account
Money market account
Certificate of deposit(CD)
Individual retirement account(IRA)
Credit card
Debit card
Mortgage
Home equity loan
Mutual fund
Personal loan
Time deposits
ATM card
Current Accounts
http://en.wikipedia.org/wiki/Transaction_feehttp://en.wikipedia.org/wiki/Transaction_feehttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Business_bankinghttp://en.wikipedia.org/wiki/Business_bankinghttp://en.wikipedia.org/wiki/Business_bankinghttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/High_net_worth_individualhttp://en.wikipedia.org/wiki/High_net_worth_individualhttp://en.wikipedia.org/wiki/High_net_worth_individualhttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Financial_marketshttp://en.wikipedia.org/wiki/Financial_marketshttp://en.wikipedia.org/wiki/Financial_marketshttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Checking_accounthttp://en.wikipedia.org/wiki/Checking_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Money_market_accounthttp://en.wikipedia.org/wiki/Money_market_accounthttp://en.wikipedia.org/wiki/Certificate_of_deposithttp://en.wikipedia.org/wiki/Certificate_of_deposithttp://en.wikipedia.org/wiki/Individual_retirement_accounthttp://en.wikipedia.org/wiki/Individual_retirement_accounthttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Mortgagehttp://en.wikipedia.org/wiki/Mortgagehttp://en.wikipedia.org/wiki/Home_equity_loanhttp://en.wikipedia.org/wiki/Home_equity_loanhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Personal_loanhttp://en.wikipedia.org/wiki/Personal_loanhttp://en.wikipedia.org/wiki/Time_depositshttp://en.wikipedia.org/wiki/Time_depositshttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Transactional_account#Current_accountshttp://en.wikipedia.org/wiki/Transactional_account#Current_accountshttp://en.wikipedia.org/wiki/Transactional_account#Current_accountshttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Time_depositshttp://en.wikipedia.org/wiki/Personal_loanhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Home_equity_loanhttp://en.wikipedia.org/wiki/Mortgagehttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Individual_retirement_accounthttp://en.wikipedia.org/wiki/Certificate_of_deposithttp://en.wikipedia.org/wiki/Money_market_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Checking_accounthttp://en.wikipedia.org/wiki/Non-profit_organizationhttp://en.wikipedia.org/wiki/Financial_marketshttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/High_net_worth_individualhttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/Business_bankinghttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Transaction_fee7/29/2019 Project Home Loan
4/21
Business (or commercial/investment) banking
Business loan
Capital raising(Equity/Debt/Hybrids)
Mezzanine finance
Project finance
Revolving credit
Risk management(FX,interest rates,commodities,derivatives)
Term loan
Cash Management Services
BANKING INDUSTRY IN INDIA
Banking in India originated in the last decades first banks were The General Bank
of India, which started in 1786, andBank of Hindustan, which started in 1770; both are
now defunct. The oldest bank in existence in India is the State Bank of India, which
originated in theBank of Calcuttain June 1806, which almost immediately became the
Bank of Bengal. This was one of the three presidency banks, the other two being the
Bank of Bombay and the Bank of Madras, all three of which were established under
charters from the British East India Company. The three banks merged in 1921 to form
theImperial Bank of India, which, upon India's independence, became theState Bank of
Indiain 1955. State Bank of Mysore is an associate bank of State Bank of India.
ABOUT STATE BANK OF MYSORE:
01. History
In 1913, at the instance of Sir M. Visvesvaraya, the Engineer Statesman, a state
aided Bank, under the patronage of His Highness the Maharaja of Mysore, Sri
Krishnaraja Wodeyar IV, was established. This was "MYSORE BANK LTD". During 1953,
"Mysore Bank" was appointed as an agent of Reserve Bank of India to undertake
Government business and treasury operations, and in March 1960, it became a
http://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Stock_exchange#Raising_capital_for_businesseshttp://en.wikipedia.org/wiki/Stock_exchange#Raising_capital_for_businesseshttp://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Hybrid_securityhttp://en.wikipedia.org/wiki/Hybrid_securityhttp://en.wikipedia.org/wiki/Hybrid_securityhttp://en.wikipedia.org/wiki/Mezzanine_financehttp://en.wikipedia.org/wiki/Mezzanine_financehttp://en.wikipedia.org/wiki/Project_financehttp://en.wikipedia.org/wiki/Project_financehttp://en.wikipedia.org/wiki/Revolving_credithttp://en.wikipedia.org/wiki/Revolving_credithttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Interest_rateshttp://en.wikipedia.org/wiki/Interest_rateshttp://en.wikipedia.org/wiki/Interest_rateshttp://en.wikipedia.org/wiki/Commoditieshttp://en.wikipedia.org/wiki/Commoditieshttp://en.wikipedia.org/wiki/Commoditieshttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Term_loanhttp://en.wikipedia.org/wiki/Term_loanhttp://en.wikipedia.org/w/index.php?title=Bank_of_Hindustan&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bank_of_Hindustan&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bank_of_Hindustan&action=edit&redlink=1http://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/w/index.php?title=Bank_of_Hindustan&action=edit&redlink=1http://en.wikipedia.org/wiki/Term_loanhttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Commoditieshttp://en.wikipedia.org/wiki/Interest_rateshttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Revolving_credithttp://en.wikipedia.org/wiki/Project_financehttp://en.wikipedia.org/wiki/Mezzanine_financehttp://en.wikipedia.org/wiki/Hybrid_securityhttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Stock_exchange#Raising_capital_for_businesseshttp://en.wikipedia.org/wiki/Loan7/29/2019 Project Home Loan
5/21
subsidiary of the State Bank of India under the State Bank of India (subsidiary Banks) Act
1959. Now our bank is an Associate Bank under State Bank Group.
The Bank has grown progressively, right from its inception and has declared
uninterrupted profits from the beginning. "MYSORE BANK", as it is popularly known, is
constantly committed to serve it's customers. Our dedicated service to clientele hasbrought recognition / laurels to "MYSORE BANK" .
In this competitive world of Banking and Technology we reiterate and resolve to
rededicate ourselves for the service of the Nation through improved service to our
customers.
PROFILE OF THE STATE BANK OF MYSORE (SBM):
State Bank of Mysore was established in the year 1913 as Bank of Mysore Ltd. under the
patronage of the erstwhile Govt. of Mysore, at the instance of the banking committee
headed by the great Engineer-Statesman,Late Dr. Sir M.Visvesvaraya. Subsequently, in
March 1960, the Bank became an Associate of State Bank of India. State Bank of Indiaholds 92.33% of shares. The Bank's shares are listed in Bangalore, Chennai and Mumbai
stock exchanges.
Branch Network
The Bank has a widespread network of 737 branches (as on 31.03.2012) and 22
extension counters spread all over India which includes 6 Small and Medium Enterprises
Branches, 4 Industrial Finance branches, 3 Corporate Accounts Branches, 6 specialised
Personal Banking Branches, 9 Agricultural Development Branches, 3 Government
Business branches, 1 Asset Recovery Branch and 6 Service Branches, offering wide range
of services to the customers
Human Resources
The Bank has a dedicated workforce of10249 employees consisting of3187 supervisorystaff, 7062 non-supervisory staff (as on 31.03.2012). The skill and competence of the
employees have been kept updated to meet the requirement of our customers keeping
in view the changes in the environment.
http://www.statebankofmysore.co.in/index.php/our-profile/88.htmlhttp://www.statebankofmysore.co.in/index.php/our-profile/88.htmlhttp://www.statebankofmysore.co.in/index.php/our-profile/88.htmlhttp://www.statebankofmysore.co.in/index.php/our-profile/88.html7/29/2019 Project Home Loan
6/21
OrganisationalSetup
While the Chairman of State Bank of India is also the Chairman of the Bank, The
Managing Director is assisted by two Chief General Manager and 12 General Managers
Financial Profile
The paid up capital of the Bank is Rs. 468 Millions as on 31.03.2012 out of which State
Bank of India holds 92.33%. The net worth of the Bank as on 31.03.2012 is Rs.3412.72
Crores and the Bank has achieved a capital adequacy ratio of12.55% as at the end of
31.03.2012. The Bank has an enviable track record of earning profits continuously and
uninterrupted payment of dividend since its inception in 1913. The Bank earned a net
profit ofRs.369.15 Crores for the year ended March 2012 and earnings per share is at
Rs.78.88
Business Profile
Total deposits of the Bank as at the end of March 2012 is Rs.50186 Crores and the total
advances stood at Rs. 40653 Crores which include export credit ofRs. 1325 Crores. The
Bank is a major player in foreign exchange dealings also and has achieved a merchant
turnover of over Rs 31583 Crores and a trading turnover of over Rs 146405 Crores for
the year ended March 2012.
Title:
A Study on Direct Housing Loan to Public Individual in State Bank of Mysore
(13, Langford Town Branch, Bangalore-560025)
General Introduction:
House is a dream of every human. to make that dream true money is the main source.
We may not get the lump sum money at a time to build a house, for that purpose we
will go for credit from friends or relatives or any financial institution or banks etc.,
7/29/2019 Project Home Loan
7/21
among all these bank is the most secured place to take the credit because it is
transparent in transactions, interest rates etc., as a part of my MBA Project I have taken
a study on housing Loan in State Bank of Mysore.
All the banks are providing housing loans with attractive interest rates. But state bank of
mysore is one of the associate banks of the state bank of India, it is providing the
housing loans with interest rates at par with the SBI, which will attract the customers
quickly.
Statement of the Problem:
The banking industry is a vast industry . It includes deposits, advances, export and
import etc., among these the advances area is the most important for bankers. Theyshould be very attentive while processing a loan and sanctioning. there are many types
of advances like personal loan, auto loan, mortgage loan, housing loan, education loan
etc.,. As a part of project I have taken the housing loan to study in depth. My study
helps the organization as well the public to understand better in the area of housing
loan.
Objective of the study:
Through this project I would study completely about housing loan sanction process and
benefits and consequences of the housing loan in state bank of mysore. I would also get
the feedback from the customers who has availed the housing loan and who are going
to avail, which will help to the organization to understand the customer needs better
and to give the proper information to the customers on behalf of the Bank.
Scope of the study:
This study covers the entire process of housing loan sanction which is one of the most
important types of the advances in any financial institution which is providing loans. This
7/29/2019 Project Home Loan
8/21
study helps in either way to me to get the knowledge of the advances particularly
housing loan and the organization to know their customer better.
Methodology:
As of now I am getting information from the bank side only hence I am not able to give
the full details of methodology.
Limitations of the study:
01.It covers only one product of advances of the bank
02.No possibility to study about the other departments of banking viz., depositssection.
03.While taking customer feedback they may not be willing to give proper
information and there may be possibility for wrong data.
04.Less possibility to get the confidential information from the officials of the bank.
HOUSING LOAN OR HOME LOAN IN STATE BANK OF MYSORE:
INTRODUCTION:
Housing Loan
Under Personal Segment, You can avail a loan for
Construction or Purchase of a new house or flat
Repairs / Renovation / Extension of existing house
For purchase of plot for construction of house within two years
For purchase of built houses not more than 15 years old
Housing loan against II charge
For Purchase of Furnishings / Consumer durables as part of the project cost
Maximum Repayment period
Age Repayment
7/29/2019 Project Home Loan
9/21
period
For persons below 35 yearsof age
25 years
For persons below 45 years
of age
20 years
For persons above 45 yearsof age
15 years
Margin
Amount Margin (%)
Upto Rs. 30 lakhs 20%
Above Rs. 30 laks to 75lakhs
20%
Above Rs 75 lakhs to 1.00Crore
25%
Above Rs 1.00 crore 40%
Margin for Purchase of New houses which are ready for possession(Applicable to First sale only)
Amount Margin (%)
Upto Rs. 75 lakhs 15%
Above Rs.75 laks to 1cr
20%
Above Rs 1.00 crore 30%
InterestPenal interest of 1% in case of default of three or more consecutiveinstalments.
Processing charges
Loan Amount Processing Charges (w.e.f. 01.06.2011)
Upto Rs 25 Lacs 0.25% of loan amount, with a minimum ofRs 500/-
Above Rs 25 Lacs and upto Rs75 Lacs
Rs 10,000/-
7/29/2019 Project Home Loan
10/21
Above Rs 75.00 Lacs Rs 20,000/-
InsuranceThe house property has to be insured covering all risks. Group insurance isavailable to cover the life of the borrower on payment of one time upfront
premium.DisbursementDirect to the sellers in case of purchase.For Construction / Repairs / Renovations in a phased manner
RepaymentRepayable in monthly instalments. Repayment period ranging from 5 to 25 years,including a moratorium period ranging from 6 to18 months from the date of thefirst disbursement.
Pre-Payment penalty
No Pre-closure / Pre-payment penalty on all Home Loans.
Housing loan process:
The following steps will be followed in SBM for the sanction of HOUSING LOAN.
IDENTIFYING THE CUSTOMER.
First and foremost step in sanctioning of home loan is identifying the customer. In this
process the bank will identify the customer who is in need of housing loan and the
repayment capacity of the customer.
Calculating eligibility at branch level:
After duly complying KYC (Know your customer) norms (verification of identity and
address with valid proofs as per RBI) the bank will verify the income of the customer. As
per his income the bank will calculate the eligibility and fix the Loan amount.
Process at the Branch:
The branch will accept the duly filled in application from the customer to process the
loan while accepting the application the branch head or the loan processing officer will
interview the customer. Some of the important questions are mentioned here.
7/29/2019 Project Home Loan
11/21
01.What is the project value?
02.Whether it is purchasing / construction / renovation/ takeover/ site?
03.What is your own contribution towards project?
04.Are you salaried of self employed or businessman?
05.What is your annual income?06.Are you income tax assessee ?
07.If yes are your filing income tax returns regularly?
08.Are you having any other liabilities with any bank or financial institution?
09.What is the time period of the project?
After getting the basic information from the customer the branch will process the
application.
The process is as under:
01.Scrutinizing the application form.
02.Verifying the required documents as per kyc norms.
03.Verifying the property documents and general documents.
04.Inspecting the residence of the customer by the advances manager or branch
head.
05.Forwarding the application to RACPC* (Retail Assets Centralized Processing Cell)
for further processing.
(* in metros where the CPC is located, in rural or other locations it will be sent to
their 2`region heads for further processing)
06. Process at RACPC:
7/29/2019 Project Home Loan
12/21
i) Accepting the application for processing at RACPC
ii) Assigning the application to the processing officer.
iii) Sending the documents for legal opinion from the panel of advocates of the bank.
iv) IT verification
v) pre sanction inspection
vi) Property valuation
vii) Arriving the eligibility as per the terms and conditions of the bank and fixing the loan
amount.
viii) Sanctioning by the processing department.
ix) Sending the sanctioned project to maintenance department for further process.
x) Mortgaging of the title deeds and disbursement
xi) Post sanction inspection.
01.Scrutinizing the application form at branch level:
The branch head or the loan processing officer at the branch will scrutinize the
application received from the customer to make sure that everything is filled; this
will enable the branch to check the customers bank account details and financial
position. The housing loan application* of the SBM is very effectively prepared
where we can get maximum information about the applicants and the project as
well. The check list also is enclosed to make sure the customer has enclosed all the
required documents for the processing. The loan processing officer will verify the
application for hassle free processing.
(*application format enclosed with this as annexure)
7/29/2019 Project Home Loan
13/21
02.Verifying the required documents as per kyc norms.
This is one of the very important steps in the entire process. As per Reserve Bank of
India guidelines the KYC (know your customer) compliance is very important for any
bank or financial institution because there were so many cases of frauds by providing
incorrect address and fake identification. The branch has to verify the genuineness of
identity proof and address proof of the customer and collect the contact details viz.,
phone numbers and email id.
List of documents as per kyc norms:
01.PAN card
02.Voter identity card
03.Aadhar card
04.Driving licence
05.Passport
Any one of the above documents can be taken as identity proof. For address
proof any one of the following documents can be obtained.
01.Passport
02.Ration card
03.Recent telephone bills
04.Property tax receipts
03.Verifying the property documents and general documents.
At branch level it is difficult to verify whether the documents produced for the property
is genuine or fake; usually at branch level they will attest the required documents by
verifying the originals and the to check the genuineness the documents will be sent for
legal opinion by RACPC.
Particulars of the documents required to be submitted along with the fully completedapplication form
General Documents (Applicable to all)
1. Application form duly filled by the borrower, co-borrowers (if
applicable) along with 3 photographs each
7/29/2019 Project Home Loan
14/21
2. Proof of identity and proof of residence
3. Last six months Bank account statements and signature
identification from present Bankers
4. If any previous loan (from other Bank/Financial institution), then
loan account statement for the last one year
5. Personal asset liability statement in the Banks standard format
For Salaried Employees
1. Salary slips for the last 3 months
2. Copy of identity card issued by the employer
3. Copies of Bank account statement for the last 6 months reflecting salary credits4. Form 16 or IT returns for the last 2 years
5. Employer certificate, Appointment letter, Increment letter (duly attested by the
employer)
For Self Employed/Professionals
1. Photocopies of IT Returns/Assessment orders for the last 3 years
2. Photocopies of challans evidencing payment of Advance Income Tax
3. Statement of income, Balance sheet, Profit and Loss Account for the last 3 years(Certified true copy)
4. Proof of business address
5. Business proof (Registration certificate of establishment, Trade license, Sales Tax
Registration etc)
6. A photocopy of Certificate of Practice (if applicable)
7. A photocopy of Registration Certificate for deduction of Profession Tax (if
applicable)
8. TDS Certificate (Form 16A, if applicable)
For NRIs & PIOs
1. Valid residence proof
2. Employment profile for the last 5 years
7/29/2019 Project Home Loan
15/21
3. Copy of passport including page containing Visa stamping
4. Copy of valid work permit/work contract and appointment letter
5. Copy of identity card issued by the employer
6. Statement of overseas Bank account for the last six months which reflects credit
of salary, savings etc
7. Salary slips for the last three months
8. Copies of latest 2 years Tax Returns (if applicable)
9. Copy of Continuos Discharge Certificate in respect of applicants employed in
Merchant Navy
10.Power of Attorney, if applicable, in Banks standard format duly stamped and
notarized/attested by Indian Embassy/Consulate
For property purchased from Builder/Development Authority (New Flats)
1. Agreement for sale, construction agreement
2.
Copy of order under the Urban land Ceiling Act
3. Blueprint (Plan Copy) duly sanctioned by Municipal Authority
4. All payment receipts to builder/seller
5. Letter from builder/society/Housing Board intimating their account number and
name of their Bankers for remittance of instalments
6. Copy of tax paid receipt and possession certificate issued by the revenue
authorities
7. Registered Development Agreement between the owner of the land and the
builder, Power of Attorney to the builder from the land owner for sale of flats
8. Commencement Certificate granted by Corporation
9. Letter of allotment from Private builder/Housing Board/Society10.NOC & Transfer letter from Development Authority
11.NOC from private builder in Banks standard format
12.Tripartite Agreement
13.If leased land then Registered Agreement of lease
For property purchased from registered society
1. Agreement for sale
2. Copy of order under the Urban land Ceiling Act3. Letter of allotment from the society
4. A copy of approved plan by the appropriate authority
5. Share certificate in original
6. Permission for construction
7. List of members submitted by society with Registrar of Societies duly
acknowledged
7/29/2019 Project Home Loan
16/21
8. Copy of bye laws of society
9. Certificate of IT clearance
10.Certificate of registration
11.NOC to mortgage from the society
12.NOC from land allotting in case of lease hold property
Undertaking by architect, member, Power of attorney, Accepting deposit of original
share certificate accepting the Bank as nominee, resolution passed by the Managing
Committee
For property purchased from Society not registered / originally allotted from
Development authority / Resale flat
1. Agreement for sale
2. Copy of order under the Urban land Ceiling Act
3. Blueprint (Plan copy) duly sanctioned by Municipal Authority4. Occupancy certificate and share certificate
5. Chain of old agreements in original with original receipt of registration (if any)
6. Original letter of allotment issued to the first owner by the development
authority/builder (as applicable)
7. Original stamped receipts of payments issued to the previous and present owners
by the builder/development authority/society
8. Conveyance deed executed by the builder/development authority in favour of
society/seller
9. Transfer permission from the respective authority (development
authority/society)Construction on own land
1. Detailed estimate from Chartered Engineer/Architect
2. Blueprint (Plan Copy) duly sanctioned by Municipal Authority
3. Copy of tax paid receipt and possession certificate issued by the revenue
authorities
If take over loan from other Bank
1. Original sanction letter of financier
2. A/c statement from the financier
3. Copy of title papers in the name of the applicant
4. Possession certificate where house is complete and repayment has started
7/29/2019 Project Home Loan
17/21
5. Detalis of interim security
6. Foreclosure letter
7. List of documents held by the financing institute
8. Letter of No Objection Certificate from the current lender Bank/ Financial Institute
04. Inspecting the residence of the customer by the advances manager or branch
head.
After taking all the necessary documents from the customer it is mandatory to
inspect the residence of the customer and a report has to be prepared by the
inspecting official in prescribed format.
05. Forwarding the application to RACPC* (Retail Assets Centralized Processing Cell)
for further processing.
State Bank of Mysore has introduced Business Process Re-Engineering (BPR) centres in
Bangalore and some major cities. These are the centralized business centres where the
processing will be done as a backend to the branches. For Personal segment loans in
SBM there is a cell called Retail Assets Centralized Processing Cell which is located near
Lalbagh, Bangalore. All the housing loan applications will be forwarded to this cell after
basic verification and residence inspection by the branch. (Where ever these BPR
Cantres are not located the applications will be forwarded to their regional heads for
scrutinizing and sanctioning the loan.)
The branch has to write a recommendation letter along with the application by
mentioning the observations; also branch has to attach the enclosures list.
06. Process at RACPC:
i) Accepting the application for processing by RACPC:
Application will be accepted by RACPC for processing at their end. They will verify as per
the list enclosed by the branch, if any discrepancies RACPC will re send the application
to the branch.
7/29/2019 Project Home Loan
18/21
ii) Assigning the application to the processing officer:
After receiving the application the same will be allotted to an officer for processing the
application further. The official will scrutinize once again the application and check the
enclosures from the bank. Then the official will dispatch the documents for legal opinion
and Income Tax search report.
iii) Sending the documents for legal opinion from the panel of advocates of the
bank.
The processing official will send the property documents for legal opinion from the
advocates panel of the bank. The advocate will scrutinize the genuineness of the
property documents
The list of the documents advocates panel scrutinizes:
1. Sale deeds
2. Khatha certificate
3. Khatha extract
4. Tax period receipts
5. Encumbrance certificate
6. Sanctioned plan from the competent authority
7. Letter of allotment.
8. In case of conversion of agricultural land, copy of the relative order.
The above mentioned are some of the documents only the additional documents will be
taken depending up on the type of the loan.
iv) IT verification:
Income tax returns filed by the customers are to be verified with the auditor who has
filed the returns and search report to be submitted to the bank. Usually these searches
are being done by an auditor appointed by the bank. This is also very important and the
processing official should be cautious because frauds can take place while providing the
IT retrns.
7/29/2019 Project Home Loan
19/21
v) Pre sanction inspection:
This is the inspection conducted by the processing cell to ensure the measurements and
the property details mentioned in the application and as per the documents produced
by the customer are correct. This inspection can be done by the processing officer or it
can be assigned to branch head.
vi) Property valuation:
After pre sanction inspection by the bank official the bank will approach an authorized
builder for property valuation. The bank has tied up with the builders and developers
and the authorized builders will inspect the property where the house going to be
constructed. They will compare the estimation given by the customer and they prepare
their estimation as per the market rate and government rate in the prescribed format
given by the bank. Based on the estimation given by the builder the bank will proceedfor the loan amount eligibility calculation.
vii) Arriving the eligibility as per the terms and conditions of the bank and
fixing the loan amount.
After receiving the reports from the advocates panel legal opinion , auditors IT
verification reports, and property valuation reports the bank will arrive the eligibility
amount for loan as per customers income and repaying capacity keeping in mind the
customers own contribution. They calculate the NMI (Net Monthly Income) and theproposed EMI (Equated Monthly Installments) as per the EMI:NMI ration the loan
amount will be sanctioned.
For example:
X persons annual income is Rs.1500000.00
Then his monthly income is= 1500000/12
=125000.00
Assume deductions per month are Rs. 24000.00
Then net monthly income NMI is Rs.125000-24000=101000.00
The proposed EMI for one lakh is Rs.915 for 30 years.
7/29/2019 Project Home Loan
20/21
Hence the eligible loan amount would be: 101000/915=110 Lakhs.
viii) Sanctioning by the processing department:
The processing officer will arrive the eligibility of the customer and the official will
prepare the documents accordingly compiling all the reports received by him and he
recommends for the sanction. Then the application will be sent to the competent
authority for sanction. The authorized official will scrutinize all the reports and
application as well as recommendations sent by the branch and processing officer. He
will re confirm the eligibility and sanction the loan. If he cannot sanction the loan
amount due to sanctioning powers then he will recommend high authority for
sanctioning. After sanctioning the sanction communication letter will be sent to the
customers along with the terms and conditions letter. The customer has to agree with
the terms and conditions of the bank.
ix) Sending the sanctioned project to maintenance department for further
process:
Till sanction of the loan the processing department will handle. After sanctioning the
project will be sent to maintenance department for documentation, after Post sanction
inspection the loan amount will be disbursed.
x) Mortgaging of the title deeds:
7/29/2019 Project Home Loan
21/21