A

SUMMER TRAINING REPORT

ON

“OPTIMISING TURN AROUND TIME OF PAYMENT DELIVERY”

BY

KOTAK MAHINDRA BANK

Submitted in the partial fulfillment of the

Requirement for award of the degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

TO

GURU NANAK INSTITUTE OF MANAGEMENT &

TECHNOLOGY , MODEL TOWN LUDHIANA.

SUBMITTED BY

Ravi Inder Singh

MBA 3 A

104602248748

DECLARATION

I Ravi inder Singh S/o S.Surinder Singh a student of M.B.A (Session 2010-2012) at Guru Nanak

Institute Of Management & Technology (GNIMT) Ludhiana.My institute Roll No.is

104602248748

I have to declare that I have completed my summer training Project titled “OPTIMISING

TURN AROUND TIME OF PAYMENT DELIVERY” AT RETAIL ASSET

DIVISION OF KOTAK MAHINDRA BANK LIMITED, LUDHIANA.

I certify that it is my original work and have not been copied from any other student or any other

source which can violate the Punjab Technical University. If in case my work is found copied, I

shall be myself responsible for the consequences arising out of It.

Ravi inder Singh

CERTIFICATE

This is to certify that Ravi inder Singh has undergone his/her summer Training report titled

“OPTIMISING TURN AROUND TIME OF PAYMENT DELIVERY” AT RETAIL ASSET

DIVISION OF KOTAK MAHINDRA BANK, LUDHIANIA.

Further, I certify that the work submitted by the above student is Original to best of my

knowledge and have not been copied from any other student or any other source which can

violate the Punjab Technical University.

I wish him/her a bright career and life to come.

ACKNOWLEDGEMENT

It gives me tremendous pleasure in acknowledging the Valuable assistance extended to me by all

the concerned Persons who helped me in the successful competition of this Report. I feel obliged

to all of them.

I express my sincere thanks to MR. HARSH MARWAHA (Location head-Retail Assets

Operations) Kotak Mahindra Bank, for allowing me to Carry out training and use all The

facilities and documents required for the same and gave me a helping hand whenever I needed.

sRavi Inder Singh

PREFACE

Practical training constitute an integral part of the management studies Training gives an

opportunity to the students to expose themselves to the Industrial environment which is quite

different from the classroom Techniques. The practical knowledge is an important suffix to the

Theoretical knowledge.

One cannot rely merely upon theoretical knowledge. It has to be coupled with practical for it to

be fruitful. Classroom lectures make the fundamental concepts of management clear but not their

application in actual practice. A positive and correct result of the classroom learning needs

realities of practical situation. The Training also enables the management students to them see

the working conditions under which they have to work in Future. It thus enables the students to

undergo those Experiences which will help them later when they join any Organization.

CONTENTS

Acknowledgement

Preface

Introduction to the company profile

Research Methodology

Problem statement

Objective of study

Research design

Data collection

Sampling design

Limitation of the study

Data analysis and Interpretation

Findings

Suggestions

Conclusions

Annexure

Bibliography

Company Profile

CORPORATE IDENTITY

KOTAK MAHINDRA BANK LIMITED

 

HISTORY

Established in 1984, Kotak Mahindra is one of the India’s leading financial institutions, offering

complete financial solutions. From commercial banking, to stock broking, to life insurance, to

investment banking, the group caters to the financial needs of individuals and corporate.

In February 2003, Kotak Mahindra finance limited, the group flagship company was given the

license to carry on banking business by the reserve bank of India (RBI). Kotak Mahindra Finance

Limited is the first company in the Indian history to convert to a bank.

Recently Kotak Mahindra bank limited and HDFC bank have signed a memorandum of

understanding to share their ATM network. This agreement will give customers of the two banks

access to over 1400 ATMs across the country while HDFC Bank has 1335 ATMs across 228

locations in the country; Kotak Mahindra Bank has 75 ATMs at 41 locations, accessible 24 hours

a day, and 365 days a year.

Kotak Mahindra Bank is offering access to HDFC Bank ATM network free of cost to most of its

customers. The charges for HDFC Bank customer for using Kotak Mahindra’s ATMs are Rs. 18

for Cash withdrawals and Rs. 7 for Query-based transactions such as balance enquiry he group

has a net worth of over RS 2900 crores employs around 8800 people in its various business and

has a distribution network of branches. The group services around 2 million customer accounts.

KMBL is a full services financial services platform’s holding company with several subsidiaries

straddling businesses that range from the mundane (car finance) to the (investment banking).

.

JOURNEY SO FAR

KOTAK MAHINDRA BANK LIMITED

KOTAK MAHINDRA CAPITAL COMPANY LIMITED:

Kotak Mahindra Capital Company Limited (KMCC) is India's premier Investment Bank and a

Primary Dealer (PD) approved by the RBI. KMCC's core business areas include Equity

Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services, Fixed Income

Securities and Principal Business.

KOTAK SECURITIES

Kotak Securities Ltd. is one of India's largest brokerage and securities distribution house in

India. Over the years Kotak Securities has been one of the leading investment broking houses

catering to the needs of both institutional and non-institutional investor categories with presence

all over the country through franchisees and co-coordinators. Kotak Securities Ltd. offers online

(through www.kotaksecurities.com) and offline services based on well-researched expertise and

financial products to the non-institutional investors.

KOTAK MAHINDRA PRIME LIMITED:

Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus Limited)

has been formed with the objective of financing the retail and wholesale trade of passenger and

multi utility vehicles in India. KMP offers customers retail finance for both new as well as used

cars and wholesale finance to dealers in the automobile trade. KMP continues to be among the

leading car finance companies in India.

KOTAK MAHINDRA ASSET MANAGEMENT COMPANY :

Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra

Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds

in excess of Rs 11,000 cores and offers schemes catering to investors with varying risk- return

profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing

only in government securities.

KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE LIMITED:

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak Mahindra

Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take important financial

decisions at every stage in life by offering them a wide range of innovative life insurance

products, to make them financially independent.

MDUDAY KOTAK

EDDIPAK GUPTA

HEAD OTEARWIND KATHPALIA

DIVISONAL HEADHEMANT SHAH

HEAD ICHEMANT DAVE

ZOH NORTHGAUTAM MUNJAL

QUALITYAMIT BADHERA

ZOH WESTCLIFFORD

CLUSTER HEADSHASHI HEAD

PUNJAB/RAJ/CHD

CLUSTER HEADPANKAJ JINDAL

DELHI/NCR

CLUSTER HEADPROMOD MOHANTHY

GUJARAT

ORGANISATION CHART

PROGRESS SO FAR….

1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting

1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase

market

1990 The Auto Finance division is started

1991 The Investment Banking Division is started. Takes over FICOM, one of

India’s largest financial retail marketing networks

1992 Enters the Funds Syndication sector

1995 Brokerage and Distribution businesses incorporated into a separate

company - Kotak Securities. Investment Banking division incorporated into

a separate company - Kotak Mahindra Capital Company

1996 The Auto Finance Business is hived off into a separate company - Kotak

Mahindra Prime Limited (formerly known as Kotak Mahindra Primus

Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak

Mahindra Limited, for financing Ford vehicles. The launch of Matrix

Information Services Limited marks the Group’s entry into information

distribution.

1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset

Management Company.

2000 Kotak Mahindra ties up with Old Mutual plc. For the Life Insurance

business.

Kotak Securities launches its on-line broking site (now

www.kotaksecurities.com). Commencement of private equity activity

through setting up of Kotak Mahindra Venture Capital Fund.

2001 Matrix sold to Friday Corporation Launches Insurance Services

2003 Kotak Mahindra Finance Ltd. converts to a commercial bank – the first

Indian company to do so.

2004 Launches India Growth Fund, a private equity fund.

2005 Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra

Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford

credit Kotak Mahindra.

PERSONAL LOAN

“SARAL LOAN”

COMMERCIAL VEHICLE LOAN

BUSINESS LOAN

MARKETING DEPTT

RCU DEPTT

CREDIT DEPTT

“OPS

DEPTT”

RECOVERY DEPTT.

LOAN PROVIDED BY KMBL

LOANS PROVIDED BY KMBL

MISSION OF THE COMPANY

To provide error free quality service to all our customers with speed and smile by deploying best

and innovative practices, enthusiastic talents, state of art technologies and thus create center of

excellence in operations management. Our team pushes the limits so our clients can benefit.

Always looking forward, we are committed to fostering and developing successful business

relationships. With a commitment to excellence and paying sharp attention to the quality of work

and services, perfectionalism is our only acceptable standard.

KOTAK MAHINDRA BANK LIMITED

PROMISES

To deliver the highest standard of service quality.

To advise you of our TARGETED TURNAROUND TIME and adhere to

the same.

To have transparency in all our transactions or dealings.

To have solution oriented mindset where customers are placed first.

To act courteously fairly and reasonably in all our dealing with you.

To accept and act upon customers feedback/complaint.

SERVICES OFFERED:-

KOTAK MOBILE BANKING

FEATURES

I. No need to remember complex codes.

II. Security through 128 bit encryption.

III. Check account balance for current, saving accounts.

IV. Transfer funds between accounts.

V. Purchase mutual funds units.

KOTAK GOLD ETERNITY

FEATURES

I. 24 Pure gold bars.

II. Manufactured in Switzerland by PAMP

III. Certified by one of the top assayers in the world.

IV. Tamper proof packaging to ensure the purity of gold bar.

PRODUCTS OFFERED

ATM PHONE BANKING

NET BANKING

GLOBAL DEBIT CARD

AWARDS AND CERTIFICATES

2007

Awarded the 10th Best Employer in the recently Conducted Hewitt’s Best Employers

in India 2007 Study.

Best Investment Bank in India by Finance Asia.

Emerged winner in 16 categories in the Euro money Private Banking Poll 2007,

including the Best local Private Bank.

2006

“IT Team of the Year” award at the annual Banking Technology Awards 2006.

Kotak Securities was ranked The Most Customer Responsive Company for 2006

(Category - Financial Services) by Avaya Global connect

Awarded the Best Domestic Investment Bank and the Best Equity House in The

Asset Triple A Country Awards

Awarded Voice of Customers Award for the Best Passenger Vehicle Finance

Company in India in 2006 by Frost & Sullivan

Best Investment Bank in India by Finance Asia

Adjudged the best Mutual Fund House in the NDTV Business Leadership Award

2006

2005

Ranked as the top mergers & acquisitions advisor in India in terms of the value of

mergers & acquisitions deals announced from January to December 2005.

Topped the India Advisory Partners In data League table in terms of the value of deals

announced for the calendar year 2005.

PRINCIPLES OF CUSTOMER SERVICE IN BANKING

1. By satisfying our client’s business objectives we satisfy our own professional and personal

objectives.

2. We want our client to regard Kotak Mahindra bank as their partner of choice time after time.

3. Satisfied clients become engaged clients, when they trust us, bond us and feel a sense of

pride through an association with us.

4. Engaged clients forms a significant source of continued and improved growth.

5. An engaged client will actively sell our banks products and services to others.

6. Engaged client forms a sound commercial foundation for Kotak Mahindra Bank’s future.

7. Don’t keep good news to yourself-inform the client of every success.

8. Give every client a reason to trust Kotak Mahindra bank.

9. Do what you said; you could do it, when you said you could do it.

10. Take personal ownership and responsibility for keeping the client informed of progress in

any matter they have raised to you.

11. Let the client know in advance, if you will be unable to deliver as intended even bad news

can be well received, if it’s conveyed in time.

12. Ensure all communications are reviewed before being sent to a client.

13. Treat all clients with equal and absolute respect.

RESEARCH METHODOLOGY

TURN AROUND TIME

PROBLEM STATEMENT

The problem of our study is” actual turn around time taken for delivering payment to the

customer is greater than the standard turn around time”.

Actual TAT > Standard TAT

The standard TAT is 4 hours as described by the internal policy but the actual

TAT is 24 hours.

OBJECTIVE OF STUDY

Minimizing actual delivery timing for payment.

Assessing recurring and controllable errors.

Assessing training needs.

Actual TAT = Standard TAT

TURN AROUND TIME:-

Turn around time is generally the time taken for completion of a process. In this study the TAT

should be understood as the time taken for the delivering of the payment from the time of file

gets logged into the operations. This may be further understood with the following formula:

TAT: Payment Time – Login Time

PROCEDURE OF DISBURSEMENT OF LOAN

SOURCING OF LOAN

APPRAISAL OF LOAN

DISBURSEMENT OF LOAN

APPRAISAL OF LOAN

DISBURSEMENT OF LOAN

STEP I

First the customer applies for a loan and fills the application form. The application form goes to

the sales department and sales department will login the file and after login the files goes to the

RCU (risk control unit) department. The RCU department will check all the documents and the

application form whether matches or not.

STEP II

After verification, the application form goes to the credit manager .the credit manager will

approve the loan amount only if the customer is financially strong.

STEP III

After appraisal, the file goes back to the sales department and fulfills all the remaining

documents. After this the file goes to the operation department and this department has certain

checkpoints which are as given on the next page.

THE 13 CHECKPOINT OF OPERATIONS ARE AS FOLLOWS:-

1) APPLICATION FORM

Photograph of all related parties is affixed.

Purpose of loan.

PAN No.

All relevant details filled and signed by all the parties.

Loan amount applied in application form is>=than loan approved.

Any alteration made should be authenticated by borrower.

Date of birth of all parties complete mailing address with pin code.

2) BCIF(Bank customer information)

Specify the name of the existing party with party ID.

All party to the contract is attached to the APAC.

Customer name in BCIF should be full and correctly captured in system.

Occupation & profession of borrower is Captured in BCIF.

Customer risk classification is captured in BCIF.

KYC(Know your customer)documents to be collected for all parties to

agreement consisting of:

IDENTITY PROOF

SIGNATURE VERIFICATION

DATE OF BIRTH AND PAN NO.

ADDRESS VERIFICATION.

3) CREDIT APPROVAL SHEET

Party name matches with CAS.

CAS to be signed by the credit manager.

Exposure and rate to be approved with approval authority matrix.

Any waiver has to be approved By AAM.

NCIF (Negative customer search) has to be attached in file.

4) APPROVALS

Rate to be approved By Authority matrix.

Exposure to be approved by authority matrix.

5) LOAN AGREEMENT

Loan agreement is signed by the individual borrower, on individual borrower, and

Kotak bank employee who is authorized to sign the agreement.

Common seal should be affixed on the agreement.

Loan documents should be stamped including guarantor party.

If any party has signs in any vernacular language then separate declaration has to be

fixed on last page of agreement.

If any party is illiterate and blind, a separate declaration has been obtained on the last

page.

6) FI VERIFICATION (FIELD INVESTIGATION)

External FI Report has been attached & duly signed & stamped by approved FI

agency.

Internal FI is compulsory for Saral cases.

Address in FI matches with core.

7) REPAYMENT MODE-(PDC\SI\ECS)

Is the mode of repayment availed is as per CAS.

No of PDC matches with cash flow information

PDC are duly signed and filled.

PDC should be drawn in favour of “ Kotak Mahindra bank limited”

8) CROSS COLLATERALS

For collateral assets, RC\Insurance policy\undertaking from owner of asset for

collateral available.

(Additional collateral) RTO booklet signed for collateral booklet.

Cross collateral marking should be required.

9) REFINANCE CASE

Valuation report is issued by an approved valuer and photograph of the asset is

availed.

RC \insurance policy received for the same asset endorsed in favour of KMBL.

Sum insured value is at least equal to amount financed as per CAS.

10) PARTY OTHER THAN INDIVIDUAL

Where partnership firm is party to the agreement:-

Copy of partnership deed is authenticated by one of the partners.

NOC (no objection certificate) on letter head of the firm is signed by the

authorized partner.

Signature of all the partners matches with the partnership deed.

Where company is party to the agreement

Copy of MOA & AOA of the company duly certified by the director of the

company.

Common seal of the company is affixed on loan agreement.

Where HUF is party to the agreement

Copy of trust deed is certified by one of the trustee.

HUF declaration has to be obtained in format defined.

11) CREDIT LIFE

Application form is completely filled with regards to ticking in insurance

clause.

Insured party DOB matches with the KYC document.

Declaration of good health should be signed by the customer.

Insurance premium and handling charges has been calculated.

Insurance details should be mentioned in CAS.

KLI should be filled in respective file.

12) KLI DIRECT

Dully filled & authorized letter submitted for initiating payment to KLI.

13) OTHER AREAS

RO copy is attached in the file.

CIBIL & NCIF details are attached.

brokerage to be entered in the system

Asset creation and updating in EIS

Cash flow & proposal printout to be attached in the file.

If the file does not fulfill the checks as listed above then file has to move back to the originating

point. Whereas if all the checks are found to be ok then payment is disbursed and handed over.

And file which was logged out with the pendencies on the failure of the checks , re login with the

operations department checked for those points again , thereafter the payment is disbursed.

Those files which get through in the first instance called first pass through. “FPT”

(FIRST PASS THROUGH).

RESEARCH DESIGN

RESEARCH DESIGN

Conclusive Research

Design

Exploratory Research

Design

Descriptive research Design

Causal research

The research design is a pattern or an outline of a research projects working. It is a statement of

only the essential elements of a study those that provide the basic guidelines for the details of the

project. The present study being conducted followed a DESCRIPTIVE RESEARCH

DESIGN”.

METHODS OF DESCRIPTIVE RESEARCH DESIGN

SECONDARY DATA

PANELS

OBSERVATION OF OTHERS

SURVEY

COLLECTION OF DATA

In dealing with real life problems it is often found that the data at hand area is inadequate and

hence it becomes necessary to collect data that are appropriate. There are several ways of

collecting data which differ considerably in context of money, cost, time and other resources at

the disposal of the researcher.

DATA COLLECTION

PRIMARY DATA SECONDARY DATA

QUANTITATIVE DATAQUALITATIVE DATA

DESCRIPTIVE CASUAL

EXPERIMENTAL DATASURVEY DATA OBSERVATIONAL DATA

Secondary Data: Secondary data is that data which is already published and collected not

for particularly this research design and mostly this data is accessible to all. Secondary data are

data that were collected by persons or agencies for purposes other than solving the problem at

hand. They are one of the cheapest and easiest means of access to information. Secondary data

can be valuable source of new ideas that can be explored later through primary research.

Primary Data: Primary Data is the method of data collection where data is collected for a

particular research. Here the objective is clearly known to the data collector. Moreover the

primary data thus colleted may be used for other researches also as secondary data.

In this research Primary Data has been used.

Below is the table showing 12 number of cases which were selected for the

Research.

TABLE 1.0

Table showing the Actual time taken and deviation with the standard time

Sr No.

PARTY NAME

APL APACLOGIN TIME

LOGIN DATE

DATE OF

ISSUE

TIME OF

ISSUE

ACTUAL TIME

STD TIME

TAT

1 Gumeet Singh SA 223720 1:25 P.M29-Jun-

0804-July-

08 2:00 P.M 42 HRS 4 HRS 38 HRS

2 Jagdev Singh SA 223670 1:25 P.M29-Jun-

0830-July-

08 2:00 P.M 24 HRS 4 HRS 20 HRS

3 Ranjit Singh SA 223147 5:55 P.M28-Jun-

08 29-Jun-08 7:30 P.M25 HRS 30

MIN 4 HRS21 HRS 30 MIN

4 Roop Chand SA 221372 10:00 AM25-Jun-

08 25-Jun-08 7:00 P.M 9 HRS 4 HRS 5 HRS

5 Santosh Singh SA 223563 1:40 P.M29-Jun-

08 30-Jun-08 7:15 P.M29 HRS 15

MIN 4 HRS25 HRS 15 MIN

6Jaswinder Singh SA 222577 3:00 P.M

28-Jun-08 28-Jun-08 7:00 P.M 4 HRS 4 HRS NA

7Satwinder Singh SA 223248 4:59 P.M

28-Jun-08 29-Jun-08 7:30 P.M

26 HRS 30 MIN 4 HRS

22 HRS 30 MIN

8 Pawan Kumar SA 221409 2:00 P.M25-Jun-

08 25-Jun-08 7:30 P.M5 HRS 30

MIN 4 HRS1 HRS 30 MIN

9 Sukhder Singh SA 222929 5:49 P.M28-Jun-

08 29-Jun-08 7:30 P.M25 HRS 30

MIN 4 HRS21 HRS 30 MIN

10 Paramjit Singh SA 220126 3:54 P.M13-Jun-

08 14-Jun-08 2:00 P.M 22 HRS 4 HRS 18 HRS

11 Madhu Bala SA 221701 4:06 P.M25-Jun-

08 26-Jun-08 2:00 P.M 22 HRS 4 HRS 18 HRS

SAMPLING TECHNIQUES

PROBABILITY SAMPLING TECHNIQUES NON PROBABILITY SAMPLING TECHNIQUES

SIMPLE RANDOM SAMPLING

CONVIENCE SAMPLING

CLUSTERSAMPLING

SYSTEMATIC SAMPLING

STRATIFIED SAMPLING

JUDGMENTALSAMPLING

QUOTA SAMPLING

SNOWBALL SAMPLING

PROBABILITY SAMPLING

A Probability sample is one in which each member of the population has an equal chance

of being selected.

NON PROBABILITY SAMPLING

In a non probability sample, some people have a greater, but unknown chance than others

of selection.

SAMPLING

Sampling is the art, process, or technique of selecting a suitable sample, or a representative part

of a population for the purpose for the purpose of determining parameters or characteristics of

the whole population. Sampling is an effective step in the collection of primary data and has a

great influence on the quality of results. The sampling plan includes the Sample Size and

Sampling Design

Sample Size: Sample Size is the number of samples picked from the universe.

Samples are selected and statistics are calculated from the samples so that one can make

inferences and extrapolations from the sample to the population. For this study 12

numbers of samples were picked out of 42 universes available for the month of June 08.

Sample Design: Sample design is the style of sampling, in which the sample size is

selected out of the available universe. Since the whole set of Data was scattered into the

three different Clusters i.e.

o Personal Loans

o Commercial Vehicle Loan.

o Saral Loans

Out of these three clusters the research was centered only at Saral Loans. Further out of this

cluster 12 set of cases were picked for study from the month of June where the universe size

was 42 randomly. Hence the sample design was the hybrid of CLUSTER SAMPLING

with SIMPLE RANDOM SAMPLING .

SIMPLE RANDOM SAMPLING

Random sampling is the purest form of probability sampling. Each member of the population has

an equal and known chance of being selected when there are very large populations, it is often

difficult or impossible to identify every member of the population.

CLUSTER SAMPLING

A cluster sample is obtained by selecting clusters from the population on the basis of simple

random sampling. The sample comprises a census of each random cluster selected.

LIMITATION OF STUDY

Every research problem has the hindrances with regard to so many factors; similarly in this

research also there were some limitations which have the impact on the research to some extent.

Time constraint was one of the limitations in the study.

The study was centered at only one cluster hence the other two clusters were not taken

into the consideration, which may have the impact on result.

Banking is the very vast Industry and the knowledge of the researcher is limited.

DATA ANALYSIS AND INTERPRETATION

The total numbers of cases studied showed the total of 43 errors which have been plotted below

into BAR CHART AND PIE CHART as per the given criteria.

TABLE 2.0

Table showing the total number of errors through out the category.

CATEOGARY ERRORS

Application Form 5

BCIF 11

Credit approval sheet 5

Loan agreement 3

Approvals 1

FI Verification 4

Repayment Mode 1

Refinance Mode 1

Credit Life 1

Document Charges 4

Stamp Charges 4

Other Areas 4

Bar diagram showing the frequency of errors

TABLE 2.1

0

2

4

6

8

10

12

cateogory

Errors

No.of erroes

Application Form

BCIF

Credit approval sheet

Loan agreement

Approvals

FI Verification

Repayment Mode

Refinance Mode

Credit Life

Document Charges

Stamp Charges

Other Areas

From the chart 2.1 it is evident that the errors related to BCIF have the high

number of occurrence followed by application form and credit approval sheet .the

same is also shown in PIE CHART 2.2

TABLE 2.2

No. of erros

Application Form

BCIF

Credit approval sheet

Loan agreement

Approvals

FI Verification

Repayment Mode

Refinance Mode

Credit Life

Document Charges

Stamp Charges

Other Areas

CLASSIFICATION OF ERRORS

The errors may be classified into following groups:-

FINANCING ERRORS

NON FINANCING ERRORS

FINANCING ERRORS

Financing errors is the group which has the direct impact on the financial part and this is very

critical in nature.

These errors are as follows:-

CREDIT APPROVAL SHEET

LOAN AGREEMENT

APPROVALS

FIELD INVESTIGATION

DOCUMENT CHARGES

BANK CHARGES

NON FINANCING ERRORS

Non financing errors may be considered as the less critical as compared to financial errors. But

this is also not neglectable.these errors may be due to wrong data entry or negligence, incomplete

documentation etc.

In this group following errors may be considered:-

APPLICATION FORM

BCIF

REPAYMENT MODE

REFINANCE MODE

CREDIT LIFE

STAMP CHARGES

As per study and collected data, the financing errors are less as compare to non financing errors

but still the occurrence of even single financing error may lead to heavy losses to the bank.

COMPARATIVE ANALYSIS OF FINANCING AND NON FINANCING

ERRORS

FINANCING ERRORS

FINANCING ERRORS ERRORS

Credit Approval Sheet 5

Loan Agreement3

Approvals1

FI Verification4

Document Charges4

Other Areas4

0

1

2

3

4

5

NO OF ERRORS

Errors

FINANCING ERRORS

BAR DIAGRAM SHOWS THE FREQUENCY OF FINANCING ERRORS

credit approval sheet

Loan agreement

approvals

FI Verification

Document charges

Other areas

NON FINANCING ERRORS

NON FINANCING

ERRORS Errors

Application Form5

BCIF11

Repayment Mode1

Refinance Mode1

Credit Life1

Stamp Charges4

BAR DIAGRAM SHOWS THE FREQUENCY OF NON FINANCING ERRORS

0

2

4

6

8

10

12

Errors

NON FINANCING ERRORS

NO O

F ER

RORS

Application Form

BCIF

Repayment Mode

Refinance Mode

Credit Life

Stamp Charges

SUGGESTIONS

1) TRAINING NEEDS

During the study it was noticed that the manpower involved in the preparatory of files with the

sales (the coordinators) are new to the system and need an ongoing training. It is suggested that

there should be at least two training programmes in a month to be conducted by operations.

2) WORK PRESSURE

Further it was observed that the major volume of the files logged into the operation in the last 10

days of the month. Almost 65% volume is punched only in last 10 days which create irregular

pressure on the coordinators and resulted into errors. Therefore suggested that the entire volume

should have an equal spread through out month.

3) RESPONSIBILITY ALLOCATION

At the present time the entire responsibility is centered at the coordinators only whereas it should

be equally allocated to the field staff as well.

4) INCENTIVE PLAN

There should be an incentive plan linked with the first pass through “the more the ratio is the

higher the % will be .it will help in improving the quality.

CONCLUSION

There should be more stress on financial error quality.

Ownership should be distributed amongst field staff as well.

Incentive plan should be started.

Regular training should be conducted.

Skew ness of volume has to be equated in to the normal trend.

Learning should be taken from the previous month error report.

Maker checker concept may be introduced at the level of coordinators only.

BIBLOGRAPHY

BOOKS

1. Business Research Methodology, C.R Kothari.

2. Principles of Marketing, Philip kolter.

3. Business Research, Kopper.

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