A STUDY ON LOAN PRACTICES AT INDIAN BANK

A Summer Internship Report

Submitted to

UNIVERSITY DEPARTEMENT OF COMMERCE &

BUSINESS ADMINISTRATION

In Partial fulfilment of the requirement for the award of

Submitted by-

ABHINAV ANAND
Class Roll- 33
Paper code- MB- 304
Univ. Roll- 2221601
M.B.A. (Marketing)
Session- 2021-23
 PREFACE

As I conclude my valuable experience as an intern, it is with great pleasure and a

sense of accomplishment that I present this internship report. This document
encapsulates the knowledge, skills, and insights I have gained throughout my
internship journey, and a reflection of the professional growth I have achieved.

As a part of MBA circular in order to gain practical knowledge in the field of

management, required to make an internship project report “A STUDY ON LOAN
PRACTICES AT INDIAN BANK”. The basic objective behind this project report
is to get knowledge about prior topic. In this project report I have included various
concept and implications regarding LOAN PRACTICES IN BANKING
INDUSTRY.

Throughout this report, I will provide an overview of the organization, its

objectives, and the department in which I was placed. I will also reflect on the
skills and competencies I developed or enhanced during my internship, along with
the valuable lessons learned and insights gained.
 DECLARATION
I Abhinav Anand, Student of Master of Business Administration, UNIVERSITY
DEPARTEMENT OF COMMERCE AND BUSINESS ADMINISTRATION,
hereby declare that the internship project report entitled “A STUDY ON LOAN
PRACTICES AT INDIAN BANK” is prepared by me and submitted in partial
fulfilment for the award of Master of Business Administration to Lalit Narayan
Mithila University, Darbhanga.

I also declare that this project is original and genuine and has not been submitted
to any other University or Institution.

DATE:
PLACE: DARBHANGA
ABHINAV ANAND
 ACKNOWLEDGEMENT

This project has been made possible through the direct and indirect cooperation of
various person for whom I wish to express our appreciation and gratitude.

I am extremely thankful to the Department for providing me the opportunity to do

Master of Business Administration Course

I would like to express my gratitude to the Director Sir, for being a source of
inspiration in all my activities.

I thank my project guide, Branch Manager, INDIAN BANK, Darbhanga Branch

for his continuous support & guidance in completing my project.

I am indebted to all the employees at INDIAN BANK, Darbhanga Branch for their
cooperation & providing me with knowledge & information, which I needed for
making this project a reality.

I am also beholden to my family & friends for their timely supports and
encouragement.

DATE:
PLACE: DARBHANGA
ABHINAV ANAND
 CONTENTS

Chapters TABLE OF CONTENTS Page No.

 EXECUTIVE SUMMARY

Inside the developing global competition, the productivity of any commercial enterprise
challenge depends upon the behavioural aspects of consumers. This subject matter offers with
improve product from Indian Bank. This assignment report carries 5 one-of-a-kind
chapters, the record starts with the introduction to organisation, its region of operation, its
business enterprise shape, its achievements etc.

The second chapter is the conceptual background of the study and literature review, the brief
idea regarding the advanced products and services provided by the Indian Bank, Darbhanga
branch, where the project is undertaken.

The third chapter contains the research design, methodology adopted in preparing this report
is mentioned. It includes the sample procedure, types of data used, data collection methods
and need for the study, limitations etc.

The fourth chapter comprehensive coverage of forecasting concepts techniques which shows
the analysis of data and interpretation through graphical representation, ratio analysis, data
collected from survey.

The fifth chapter deals with the findings, suggestions and conclusion part which is very
important after analysis is made.
In each of the 5 chapters as defined above every bankruptcy has been scheduled in a way
with a purpose to permit the reader to understand the content material effortlessly the report
is supported through figures and information anywhere important with a purpose to help the
reader in developing a clear out information of the subject
 CHAPTER- 1

INTRODUCTION
Introduction

The loan practices at Indian banks play a crucial role in the economic growth and development
of the country. “Loan Practices” the topic deals with the financial growth of society’s the bank
will plays an important role. By providing loans to the skilled people to build their
infrastructure, so that it creates employment opportunities.

These loans granted by commercial banks to the highly beneficial to firms and individual,
companies for meeting their short term & long-term financial needs for their business. Loans
provide financial assistance to individuals, businesses, and various sectors to meet their capital
requirements. This project report aims to analyse and evaluate the loan practices at Indian banks,
focusing on key aspects such as loan types, eligibility criteria, application process, approval
process, documentation requirements, interest rates, and repayment terms.

The internship report provides an overview of my internship experience at Indian Bank, one of
the leading public sector banks in India. The report covers various aspects of the internship,
including the organization's background, my assigned tasks, and the learning outcomes. This
report focuses on the loan practices observed during my internship at Indian Bank. The report
provides an overview of Indian Bank's loan processes, the types of loans offered, the evaluation
and approval procedures, and the overall loan management system.

INDUSTRY PROFILE

INDIAN BANKING INDUSTRY:

In India the banking is originated in 18th century. All the responsibilities taken by RBI. The
Imperial Bank of India was taking over these responsibilities in 1935 relating to the functioning
of commercial Banks. After the Independence the RBI was become nationalised and it got the
all powers. And 14 largest commercial banks were nationalized in 1961.
In 1786 the first General Bank was established in the country. And the Indian banking system
was classified into 3 phases.
Indian Banks from 1786 to 1969.
Nationalization Banks of India and up to 1991 reforms.
Reforms of Indian Banking sector after 1991.
INTRODUCTION TO INDIAN BANK

Indian Bank is one of the indigenous banks of India that emerged as a result of the Swadeshi
Movement during the British Raj. One of the prime figures associated with the establishment of
the bank was V. Krishnaswamy Iyer, a lawyer from Madras (Now Chennai). It is an Indian
public sector bank, established in 1907 and headquartered in Chennai. It serves over 100 million
customers with 41,645 employees, 5,814 branches with 4,929 ATMs and Cash deposit
machines. Total business of the bank has touched ₹1,094,752 crore (US$140 billion) as on 31
March 2023.

The modest beginning made by the Indian Bank has come a long way since then, with 1642
branches located nationwide within India and Overseas branches in Singapore and Colombo as
of April 2009. The bank also has 227 Overseas Correspondent banks in 70 countries, giving a
strong presence internationally. A 22,000 strong workforce of dedicated employees takes pride
in serving the Indian Bank. The bank's Information systems and security processes are certified
to meet ISO27001:2013 standard. Since 1969, the Government of India has owned the bank. As
per the announcement made by the Indian Finance Minister Nirmala Sitharaman on 30 August
2019, Allahabad Bank merged from 1 April 2020, making Indian Bank now the seventh largest
bank in the country.

Indian Bank offers a wide variety of Banking Products and Services to its customers, including
various Deposit Schemes, Loan Options, Financial Services, Stock Investment Services and a
number of specialized services such as Remittance, Collection, 7 Day Banking Branches, Cash
Management and Electronic Funds Transfer. As of April 2009, the bank has Core Banking
Solution (CBS) implemented in its 1642 branches and 66 extension counters. The bank has 755
connected Automatic Teller Machines (ATMs) installed in 225 locations nationwide. Apart from
its Regular Banking Services, the Indian Bank has also been offering various other services
through its 3 subsidiary companies, which are Indbank Merchant Banking Services Ltd.,
IndBank Housing Ltd. and IndFund Management Ltd.

Indian Bank has been a leader in bringing new initiatives for development of rural banking and
extending help to the farmers of India. The bank has received award from Honorable Union
Minister of Finance for Excellence in Agricultural Lending. Apart from it, the bank also
received the Best Performer Award for Micro-Finance activities in Tamil Nadu and Union
Territory of Puducherry from National Bank for Agriculture and Rural Development
(NABARD).
 PRESENT STRUCTURE OF INDIAN BANKING SYSTEM

SCHEDULED BANKS IN INDIA

BANKING STRUCTURE IN INDIA

Scheduled Scheduled Co - All India Financial

Commercial Banks operative Banks institutions

Nationalised Private Regional

Banks Banks Rural
Banks NABARD

National Federation
of State Co - operative SIDBI
Banks Limited
( NFSCOB )
EXIM

Rural Co - IDBI
operative Urban
Co -
Credit
operative
Institution
Banks

Short term Long term

Structure Structure

State Co - District Primary State Co - Primary Co - operative

operative Central Co - Agricultural operative Agricultural and
Banks operative Credit Agricultural and Rural Development
Banks Societies Development Banks
 Bank’s Profile

A BRIEF HISTORY OF THE BANK SINCE ITS INCORPORATION

· Bank was incorporated on March 5, 1907 with an Authorized Capital of Rs 20 lakhs

and commenced its business on August 15, 1907.
1907
· In the year 1907, the Indian Bank Ltd. had the tree ‘Banyan’ as a part of its emblem
denoting an all-around progress, growth (far and wide) and an ever-increasing prosperity.

1921 · Bank’s capital was raised to Rs 60 lakhs from Rs 20 lakhs.

· Bank celebrated its Silver Jubilee.

1932 · Bank opened its first overseas operations in Colombo.

1941 · Singapore branch was opened.

1957 · Bank celebrated its Golden Jubilee.

1967 · Bank celebrated its Diamond Jubilee.

· Bank’s logo comprising of three circling arrows arranged around a central point was
1978
approved.

1982 · Bank celebrated its Platinum Jubilee.

1990 · Bank of Thanjavur Ltd. (BoT) with 157 branches was amalgamated with the Bank.

· The centenary year celebration was inaugurated by His Excellency the President of India
2006
Shri. A P J Abdul Kalam on 4th September.

2007 · Bank went in for Initial Public Offer in February, 2007.

2008 · Achieved 100 per cent Core Banking Solutions (CBS) compliant.

· Tamil Nadu Grama Bank’ commenced operations on 1st April 2019 after a successful
amalgamation of Pandyan Grama Bank of Indian Overseas Bank with Bank’s Pallavan
2019 Grama Bank.
· Government of India announced Amalgamation of Allahabad Bank – a bank with
155 years legacy into Indian Bank.

· Bank commenced its operation as an amalgamated entity from 1st April 2020. The
2020
integration of CBS systems of both the Banks was completed on 14.02.2021.

2022 · Bank’s Global Business surpassed Rs 10 lakh Cr.

 Vision And Mission

Vision:
“Delivering excellence in financial services through customer focus, employee
engagement and sustainable growth.”

Mission:
• Bring the best of innovation and technology in our offerings.
• Be responsive to the unique needs of every customer through all channels of
choice.
• To provide value to stakeholders.
• Empower and engage our employees.

Associate Banks: -
1. Kanagadurga Grameen Bank, Vijayawada
2. Venkateswara Grameen Bank, Chittoor
3. Vallalar Grameen Bank, Cuddalore
4. Adhiyaman Grameen Bank, Dharmapuri

Subsidiaries:

1. Ind Bank Housing Limited;

2. Ind bank Merchant Banking Services Limited;
3. Ind fund Management Limited.
 Branch Network

▪ Domestic branches: 5787

▪ Overseas branches: 3 & IBU: 1

▪ ATMs & BNAs: 4929

▪ Business Correspondents: 10750

▪ PAN India Touchpoints: 21467

GLOBAL PRESENCE
The modest beginning made by the Indian Bank has come a long way since then, with 1642
branches located nationwide within India and Overseas branches in Singapore and Colombo as of
April 2009 including a Foreign Currency Banking Unit at Colombo and Jaffna. The bank also has
240 Overseas Correspondent banks in 70 countries, giving a strong presence internationally. A
22,000 strong workforce of dedicated employees takes pride in serving the Indian Bank.

Branch Network

BANKING ACTIVITIES
Indian Bank offers a wide variety of Banking Products and Services to its customers, including
various Deposit Schemes, Loan Options, Financial Services, Stock Investment Services and a
number of specialized services such as Remittance, Collection, 7 Day Banking Branches, Cash
Management and Electronic Funds Transfer. As of April 2009, the bank has Core Banking
Solution (CBS) implemented in its 1642 branches and 66 extension counters. The bank has 755
connected Automatic Teller Machines (ATMs) installed in 225 locations nationwide.
Bank’s Performance as on 31.03.2023

Assets and Liabilities

• Total Business recorded a YoY growth of 8% reaching the level of ₹1094752 Cr

in Mar’23 from ₹1009243 Cr in Mar’22.

• Advances grew by 14% to ₹473586 Cr in Mar’23 over ₹415625 Cr a year ago.

Growth in RAM sector is recorded at 12% YoY of which Retail, Agriculture &
MSME grew by 13%, 16% & 7% YoY respectively.

• Deposits grew by 5% YoY to ₹621166 Cr in Mar’23 as compared to ₹593618 Cr

during the corresponding period a year ago.

• CASA deposits recorded a YoY growth of 5% and stood at ₹260809 Cr in Mar’23.

The share of CASA to deposits stood at 42%.

• Priority Sector portfolio stood at ₹152992 Cr in Mar’23. Priority sector advances

as a percentage of ANBC stood at 44% as against the regulatory requirement of
40%.

Capital Adequacy

• Capital Adequacy Ratio at 16.49%. CET-I improved by 36 bps YoY to 12.89%.

Tier I Capital improved by 31bps YoY to 13.48%.

Asset Quality

• GNPA decreased by 252 bps YoY to 5.95% in Mar’23 from 8.47% in Mar’22,
NNPA reduced by 137 bps to 0.90% from 2.27% in Mar’22.

• Provision Coverage Ratio (PCR, including TWO) improved by 644 bps YoY to
93.82% from 87.38% in Mar’22.

Operating Profit and Net Profit

• Net Profit up by 34% YoY to ₹ 5282 Cr in FY23 from ₹3945 Cr in FY22.

• Operating Profit increased by 20% YoY at ₹15271 Cr in FY23 from ₹12717Cr in

FY22.

• Net Interest Income grew by 21% to ₹20225 Cr in FY23 from ₹16728 Cr in FY22.
 Digital

• The Bank has established 3 Digital Banking Units (DBUs) at South Delhi, Lucknow
and Karaikal.

• Transactions through ATM, BNA & Digital channels improved by 8% YoY in

Q4FY23.

• Mobile Banking users increased by 68% YoY, while its transactions increased by
72% YoY.

• UPI users and transactions increased by 27% YoY and 109% YoY respectively.

• During the year, the Bank has launched various Digital Journeys under its Digital
Transformation Programme.

Financial Inclusion

• Bank has opened 204.77 lakh PMJDY Accounts on standalone basis with balance
outstanding at ₹9342.26 Cr as on 31.03.2023. YoY Growth of 10.65% registered
in PMJDY accounts as on 31.03.2023.
•
• BC outlets number 10,750 cover approximately 54% of the total Banking delivery
outlets (Branch+ BC+ATM) of our Bank. It has coverage in 24 states and 05 union
Territories.

Corporate Social Responsibility

Sponsoring of
• Smart TVs to 3 Village Panchayat Middle Schools in Madurai.

• Artificial Limbs to differently-abled persons in Muradnagar (UP)

• 900 Dialysis procedures at Sri Shanmukhanda Charitable Hospital, Mumbai

• 1000 cataract procedures at Sankara Eye foundation India.

RECENT AWARDS & ACCOLADES

• Golden Peacock National Training Award 2023

• Indian Bank emerges as the winner for Top Improvement in the EASE 4.0 reforms index
• Financial Express Award for Best Public Sector Bank 2020-21
• Indian Bank was awarded as “BEST BANK FOR SERVING THE MSME” in the
Annual MSME Summit of FICCI CMSME organized at Delhi
• Indian Bank was awarded as Best Bank among all Public Sector Bank for SHG Bank
• Indian Bank received Tamil Nadu State Level PMEGP Awards year 2021-22 for being
“Best Nationalized Bank in implementation of PMEGP Scheme 2nd Place”
• Indian Bank was awarded ‘The Best Technology Talent’ in the category of medium
banks at 18th IBA Technology Conference Expo and Awards held at Mumbai
• Governance Now 5th India BFSI awards 2022 ‘Digital Transformation leader’ won
by Shri Deepak Sarda, GM-IT & CTO
• Indian Bank has bagged the Best Performing Bank Award in Tamil Nadu for the FY
2021-22 under SHG Bank Linkage Programme category from NABARD during
NABARD’s 41st Foundation Day program on 12.07.2022.
• Indian Bank secured 2nd position in Atal Pension Yojana Enrolment among all Public
Sector Banks and was recognized with an award of excellence by DFS, Govt. of India
• Indian Bank bags award for SHG – Bank Linkage Programme
• Indian Bank has been voted one of the most trusted brands in India by Reader’s Digest
under the ‘Trusted Brands 2019’

• Indian Bank won Six SKOCH Technology Innovation Awards for Techno Products.
• India’s Best Bank award by Financial Express for Indian Bank for Strength and Soundness.
• Indian Bank Won Master Card Awards
• Indian Bank Bags 3 Awards During 11th ASSOCHAM Annual Banking Summit.

• NPCI has awarded the following Technology Efforts amongst tough competition of 920
participants like Banks, White Label ATM Operators (WLAOs) and Prepaid Payment
Instrument Issuers (PPIs)
• NACH – Winner Award (APB / NREGA payments)
• NFS – Winner Award (ATM operations)
• CTS – Winner Award (Cheque Truncation)
 BOARD OF DIRECTORS

S.no. NAME DESIGNATION

1) Shri Shanti Lal Jain MD & CEO

2) Shri Imran Amin Siddiqui Executive Director

3) Shri Mahesh Kumar Bajaj Executive Director

4) Shri Ashutosh Choudhury Executive Director

5) Dr. Maruthi Prasad Government Nominee Director

Tangirala

6) Dr. Aditya Gaiha RBI Nominee Director

7) Dr. Bharath Krishna Sankar Shareholder Director

8) Ms. Papia Sengupta Shareholder Director

9) Shri Balmukund Sahay Part-time Non-Official Director

10) Shri Vishvesh Kumar Goel Part-time Non-Official Director

 Resident Individual
3% Employees
1%
Shareholding Pattern %
FPI & FII Insurance
4% 3%

Mutual Funds
8%

Promoters Govt. of India

81%
Promoters Govt. of India
Mutual Funds
FPI & FII
Insurance
Resident Individual
Employees
 PRODUCT MIX OF INDIAN BANK

LOAN PRODUCTS DEPOSIT PRODUCTS DIGITAL PRODUCTS FEATURED PRODUCTS

Agriculture loan Saving Bank A/c Internet Banking ASBA

Group loan
Merchant Digital RTGS
Current A/c Products
Personal loan
Term deposit NETC FASTag NEFT
MSME loan
NRI A/c Debit Cards Mega e-auction of
Corporate loan Properties

Education loan Credit Cards

Centralised
PENSION
NCMC Processing Centre
NRI loan

Online loan SMS/Missed call

Service
59-minutes loan
E- shopping
COVID loan
Products
Key Areas of Operations

The business operations of IB can be broadly classified into the key income generating areas
such as:

• National banking

• International Banking

• Corporate Banking

• Rural Banking

• Associates and Subsidiaries

COMPETITORS OF INDIAN BANK

Top Performing Public Top Performing Top Performing

Sector Banks: Private Sector Banks Foreign Banks

• State Bank of India • HDFC Bank • Citibank

• Punjab national Bank • ICICI Bank • Deutsche Bank

• Bank of Baroda • AXIS Bank • DBS Bank

• Canara Bank • Kotak Mahindra bank • Standard Chartered

• Central Bank of India • IDBI Bank Bank

• Union Bank • Induslnd Bank • HSBC Bank

• ABN AMRO Bank

American Express
 SWOT ANALYSIS OF INDIAN BANK

STRENGTHS: WEAKNESSES:

1. Less presence in India as it

1. Rural banking expertise
has competition in urban areas
2. Strong international network of as well as rural areas
banks with 240 overseas
2. Limited advertising in
correspondent banks in 70 countries
comparison with leading banks
3. High end banking technology with
3. Low number of ATM’s and
core banking at all 1900+ branches
branches as compared to other
4. It has 22,000 employees big bank brands
5. Diversified banking activities under
3 subsidiaries.

OPPORTUNITIES: THREATS:

1. Economic crisis & fluctuating

1. Urban market banking and retail
market scenarios
banking
2. Highly competitive
2. Favourable Government rural environment
schemes 3. Stringent Banking Norms by
3. More expansion in untapped rural Govt’s and RBI
markets
 FINANCIAL STATEMENTS

BALANCE SHEET OF INDIAN BANK AS ON 31-03-2023 & 2022

EQUITIES AND MARCH-23 MARCH-22

LIABILITIES

SHAREHOLDER'S (Amount in crores)

FUNDS

Equity Share Capital 1,245.44 1,245.44

TOTAL SHARE 1,245.44 1,245.44

CAPITAL

Revaluation Reserve 6,106.90 6,211.02

Reserves and Surplus 40,620.42 36,252.34

Total Reserves and 46,727.31 42,463.36

Surplus

TOTAL 47,972.76 43,708.80

SHAREHOLDERS
FUNDS

Deposits 621,165.76 593,617.81

Borrowings 22,073.03 17,144.31

Other Liabilities and 19,289.19 17,197.13

Provisions

TOTAL CAPITAL AND 710,500.73 671,668.06

LIABILITIES

ASSETS

Cash and Balances with 32,692.63 24,054.41

Reserve Bank of India

Balances with Banks 17,439.95 55,861.64

Money at Call and Short
Notice
Investments 185,988.25 174,558.59

Advances 449,296.73 389,186.06

Fixed Assets 7,459.04 7,683.71

Other Assets 17,624.13 20,323.64

TOTAL ASSETS 710,500.73 671,668.06

KEY PERFORMANCE
INDICATORS

Tier 1 (%) 13.48 13.17

Tier 2 (%) 3.01 3.36

ASSETS QUALITY

Gross NPA 28,179.52 35,214.25

Gross NPA (%) 6.00 8.00

Net NPA 4,043.07 8,848.64

Net NPA (%) 0.90 2.27

Net NPA To Advances 1.00 2.00

(%)

CONTINGENT
LIABILITIES,
COMMITMENTS

Bills for Collection 16,082.16 14,144.89

Contingent Liabilities 381,303.03 353,514.05

 PROFIT & LOSS A/C OF INDIAN BANK FOR THE
FINANCIAL YEAR 2022-23 & 2021-22

PROFIT & LOSS ACCOUNT OF INDIAN BANK (in Rs. Cr.) MAR 23 MAR 22

12 months 12 months

INCOME

Interest / Discount on Advances / Bills 31,941.15 26,927.56

Income from Investments 11,647.17 10,964.82

Interest on Balance with RBI and Other Inter-Bank funds 877.54 851.34

Others 476.36 112.50

TOTAL INTEREST EARNED 44,942.21 38,856.22

Other Income 7,143.06 6,915.45

TOTAL INCOME 52,085.28 45,771.67

EXPENDITURE

Interest Expended 24,716.75 22,128.27

Payments to and Provisions for Employees 7,527.23 6,695.71

Depreciation 528.81 597.50

Operating Expenses (excludes Employee Cost & Depreciation) 4,041.86 3,633.30

TOTAL OPERATING EXPENSES 12,097.90 10,926.50

Provision Towards Income Tax 632.71 -740.59

Provision Towards Deferred Tax 0.00 0.00

Other Provisions and Contingencies 9,356.21 9,512.67

TOTAL PROVISIONS AND CONTINGENCIES 9,988.92 8,772.08

TOTAL EXPENDITURE 46,803.57 41,826.85

NET PROFIT / LOSS FOR THE YEAR 5,281.70 3,944.82

NET PROFIT / LOSS AFTER EI & PRIOR YEAR ITEMS 5,281.70 3,944.82

Profit / Loss Brought Forward 129.77 100.16

TOTAL PROFIT / LOSS AVAILABLE FOR APPROPRIATIONS 5,411.47 4,021.77

APPROPRIATIONS

Transfer To / From Statutory Reserve 1,320.43 986.21

Transfer To / From Capital Reserve 0.00 147.90

Transfer To / From Revenue And Other Reserves 2,695.00 1,840.00

Dividend and Dividend Tax for The Previous Year 0.00 0.00

Equity Share Dividend 1,071.08 809.54

Tax On Dividend 0.00 0.00

Balance Carried Over To Balance Sheet 133.23 129.77

TOTAL APPROPRIATIONS 5,411.47 4,021.77

OTHER INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 42.41 32.38

Diluted EPS (Rs.) 42.41 32.38

DIVIDEND PERCENTAGE

Equity Dividend Rate (%) 86.00 65.00

 CHAPTER- 2

CONCEPTUAL
BACKGROUD AND
LITERATURE
Review
INTRODUCTION ABOUT THE TOPIC

Loan practices refer to the methods and procedures followed by financial institutions and lenders
when providing loans to individuals, businesses, or organizations. Loans play a significant role
in supporting economic growth, enabling individuals to finance their aspirations, and assisting
businesses in expanding their operations. However, loan practices can vary across different
types of loans and lenders, and it is important for borrowers to understand the terms and
conditions associated with the loan they are seeking.

Types of Loans:

There are various types of loans available, each catering to specific needs and circumstances.
Common types of loans include personal loans, home mortgages, auto loans, student loans,
business loans, and more. The loan practices associated with each type can differ in terms of
eligibility criteria, interest rates, repayment periods, and collateral requirements.

Application and Approval Process:

The loan application process typically involves submitting an application form along with
supporting documents such as identification, income verification, credit history, and collateral
details (if applicable). Lenders evaluate these documents to assess the borrower's
creditworthiness and repayment capacity. They may also consider factors such as credit scores,
employment history, and debt-to-income ratio. The approval process can vary in duration,
depending on the type and complexity of the loan.

Interest Rates and Fees:

Loan practices include the determination of interest rates and associated fees. Interest rates can
be fixed or variable and are influenced by factors such as prevailing market rates, the borrower's
creditworthiness, and the loan term. Lenders may also charge additional fees, including
origination fees, application fees, late payment penalties, and prepayment penalties. Borrowers
should carefully review and compare these costs before accepting a loan offer.
Loan Terms and Repayment:

Loan practices encompass the terms and conditions that borrowers must adhere to during the
loan's repayment period. This includes the repayment schedule, which outlines the frequency
and amount of payments. Loan terms may vary in duration, ranging from a few months to
several years. It is essential for borrowers to understand the repayment obligations, including the
consequences of late payments or defaulting on the loan.

Collateral and Guarantees:

Some loans require collateral, such as property or assets, to secure the loan amount. Loan
practices involve assessing the value and condition of the collateral and establishing appropriate
loan-to-value ratios. In certain cases, borrowers may need guarantors or co-signers who are
responsible for loan repayment if the primary borrower defaults.

Responsible Lending and Consumer Protection:

In many jurisdictions, loan practices are regulated to ensure responsible lending and consumer
protection. Governments and financial regulatory bodies establish rules and guidelines that
lenders must follow. These regulations aim to prevent predatory lending practices, promote
transparency, and safeguard borrowers' rights.

LENDING OF MONEY

The commercial bank lends money in four different ways:

(a) Direct Loans.

(b) Cash Credit.

(c) Overdraft.

(d) Discounting of bills.

Nature and security of loans

To guarantee the security of assets the first and most vital factor considered by a bank is the
limit of borrowers to reimburse the measure of credit; the bank therefore, depends basically on
the character, limit and budgetary soundness of the borrower. Be that as it may, the bank can
scarcely bear to go out on a limb in such manner substantial resource possessed by the borrower.
For this situation the borrower neglects to reimburse the credit, the bank can recoup the sum by
assaulting the advantages. It can sell the benefits offered as a security and understand the sum.

Thus, from the view point of security of loans, we can divide the loans into two categories:

(a) secured loans

(b) unsecured loans

Security of certain benefits charged is made for the advantages of the borrower for bank. This
empowers the bank to recoup the levy from the client out of offer continues of the benefits if
there should arise an occurrence of the borrower neglects to reimburse the credit. There are
different kinds of securities which might be offered against advance without a doubt, yet those
are adequate to the banks.

The types of securities generally accepted by the bank are the following:

▪ Substantial assets, for example, plant and machinery, motor-van, etc.

▪ Reports of title to goods, like Railway Receipt, Bills of exchange, etc.

▪ Monetary securities (Shares and Debentures)

▪ Life-coverage Policy.

▪ Genuine domains.

▪ Fixed Deposit Receipt.

▪ Gold decorations, jewellery etc

REVIEW OF LITERATURE

(1) "Banking Sector Reforms and Loan Practices in India" by Bharti V. Pathak and P. R.
Gandhi (2017): This study examines the impact of banking sector reforms on loan practices in
India. It explores the changes in loan appraisal, risk management, and credit delivery
mechanisms following the implementation of reforms. The study emphasizes the need for
improved loan practices to ensure financial stability and minimize non-performing assets
(NPAs) in the banking sector.

(2)"Credit Risk Management Practices in Indian Banks: A Comparative Study" by

Gurcharan Singh and Himanshu Joshi (2018): This research investigates credit risk
management practices in Indian banks. It focuses on loan approval procedures, credit appraisal
techniques, risk assessment models, and loan monitoring mechanisms. The study highlights the
importance of robust credit risk management practices for minimizing loan defaults and
enhancing the overall health of banks.

(3)"Factors Influencing Loan Default: A Study of Indian Public Sector Banks" by Sanjaya
Kumar Lenka and Priyanka Lenka (2019): This study identifies the key factors contributing
to loan defaults in Indian public sector banks. It analyzes various loan-related factors, including
borrower characteristics, loan purpose, loan amount, repayment period, interest rates, and
collateral requirements. The research provides insights into the loan practices that influence loan
repayment behavior and default rates.

(4)"Determinants of Non-Performing Assets in Indian Commercial Banks: A Panel Data

Analysis" by Prakash Chandra Dash and Madhusmita Sahoo (2020): This research
investigates the determinants of non-performing assets (NPAs) in Indian commercial banks,
focusing on loan-related factors. It examines loan appraisal practices, credit risk assessment
techniques, loan recovery strategies, and loan monitoring mechanisms. The study identifies the
loan practices that have a significant impact on NPAs and suggests measures to mitigate the risk
of loan defaults.
(5)"An Empirical Study on Lending Practices of Indian Scheduled Commercial Banks" by
C. S. Vijaya Bhaskar (2021): This empirical study analyzes the lending practices of Indian
scheduled commercial banks. It examines the loan approval process, loan pricing strategies,
collateral requirements, and loan recovery mechanisms. The research highlights the importance
of prudent lending practices to ensure the profitability and stability of banks while meeting the
credit needs of borrowers.

(6)"Loan Disbursement and Repayment Patterns in Indian Banks" (Journal of Banking

and Finance, 2018): This study examined the loan disbursement and repayment patterns of
various types of loans offered by Indian banks. It analysed factors influencing loan approval,
borrower behaviour, and default rates. The research shed light on how economic conditions,
regulatory changes, and bank-specific factors impact loan practices in the Indian banking sector.

(7)"Assessing Credit Risk and Loan Default in Indian Banks" (International Journal of
Finance and Economics, 2019): This research focused on credit risk assessment and loan
default prediction models used by Indian banks. It delved into the various credit scoring
methodologies employed by banks and explored how risk management practices affect loan
approvals and interest rates. The study also examined the impact of macroeconomic indicators
on loan repayment behaviour.

(8)"Impact of Digital Lending on Traditional Loan Practices in India" (Journal of

Financial Innovation, 2020): With the rise of digital lending platforms in India, this study
investigated how technological advancements have influenced traditional loan practices in the
country. It explored the adoption of fintech solutions by banks and non-banking financial
companies (NBFCs) and evaluated their impact on loan accessibility, underwriting processes,
and borrower experience.
CHAPTER- 3

Research
design
STATEMENT OF THE PROBLEM

▪ INDIAN BANK, Darbhanga Branch need to think about the client recognition

▪ about the development item given by them to the general population.

▪ To discover that what is the least demanding rout for giving development item.

▪ To discover the need of the client and subsequently figure the methodology to level the

economy in the general public.

▪ How the items helping the clients.

NEED FOR THE STUDY

This project is mainly to know about banks granting loans and advances to the people.

Country is facing the problems of liberalization, privatization, and globalization. In

order to overcome these problems study of loans and advances is very crucial.

▪ To comprehend the difficulties and openings in the business.

▪ To know the prospective areas of investment for the banks soon.

▪ To know the various financial requirements of the individual and corporate borrowers.

▪ To know the credit facilities bank can provide to assist business needs.

▪ To study the progress and trends since more and more competitors have entered the market

with many features in their services.

OBJECTIVES OF THE STUDY

The primary objectives of my internship at Indian Bank were to gain practical exposure to the
banking industry, understand the bank's operations, and apply theoretical knowledge acquired
during my studies. Additionally, the internship aimed to enhance my skills in areas such as
customer service, financial analysis, and risk management.

The main objectives of this project report are as follows:

▪ To understand the loan types offered by Indian banks.

▪ To examine the eligibility criteria for obtaining a loan.

▪ To evaluate the loan application and approval process.

▪ To analyse the documentation requirements for obtaining a loan.

▪ To study the interest rates and repayment terms associated with loans.

▪ To identify the challenges and opportunities in loan practices at Indian banks.

▪ To suggest recommendations for improving loan practices.

SCOPE OF THE STUDY

▪ It is about customer performance.

▪ This makes the bank to know current position and future plans.

▪ The study about various loans and advances and interest rates.

RESEARCH METHODOLOGY

It is the techniques for information representation. Fascinate examination includes overviews

and, discoveries enquire of various types, the motivation behind clear research is
representation the condition of issue as an exists at current. In business research we
frequently utilize the term trade fact to research for notify the study concentrates on.

DATA COLLECTION TOOLS

Information mainly gathered from both primary and secondary sources.

▪ Primary Data: It is a unique information source are gathered the directly by the specialists

for explicit reason or venture.

Primary information was gathered by the bank authorities.

▪ Secondary Data: It is gathered from the other than primary source, who already gathered

the information i.e., yearly reports, cost sheet etc.

 Secondary data was gathered from published materials, books, websites, balance sheets

and records.

STATISTICAL TOOLS

▪ Trend and Ratio analysis

LIMITATIONS OF STUDY

▪ The investigation depends on the information of past 5 years only.

▪ The information for concentrate for the most part dependent on solitary bank.

▪ As lion’s share of the clients are employees of the bank, they may be biased in data.

▪ The timespan of the research was limited.

 CHAPTER- 4

DATA ANALYSIS
AND
INTERPRETATION
DATA OF LOAN

IB Home Loan Combo

Individuals including Joint borrowers who have

• Availed the Home Loan from Indian Bank
• Satisfactorily serviced the Home Loan for at least ONE
Eligibility year after the Holiday Period.
• Created Equitable Mortgage
• Home Loan account repayments are regular and the account is
in Standard Category.

Under the package the borrower is entitled for any one or more of the
following loans, with concessional interest rate and processing
charges provided he / she is otherwise eligible as per the individual
Benefits loan products subject to repayment capacity and other eligibility
criteria.
* IB Vehicle Loan (Both 4-wheeler and 2-wheeler) * IB Clean Loan
(to Salaried Class) * IB Pension Loan * IB Home Improve

Concession in
Product Concession in Processing charge.
Interest rate

IB Vehicle
Applicable loan 0.50 % from the
Interest Rates and applicable card
Salary 50 % on applicable Processing charges
Processing charge rate of the
Loan of the respective product.
concessions respective
IB Pension period
loan.
IB Home 50 % on applicable Processing charges
NIL
Improve of the respective product.

* The security prescribed for the individual loan products are to be

offered * Equitable Mortgage taken for the Home Loan should be
Security
extended to cover the other loan/s sanctioned under the package.
CERSAI registration (at Applicant’s cost) to be done

* All other terms and conditions laid down as per the individual loan
products should be complied with. * The Home Loan borrowers can
Other
avail any one or more of the above products subject to fulfilling
Requirements/Details
repayment capacity for servicing existing loan liability/ies and the
proposed loan liability/ies
IB Vehicle Loan

Indian Bank is offering Vehicle Loan for purchase of New Car, New Two-Wheeler, and Used
Car at a competitive rate of interest with the following features:

Eligible Customers:

• Salaried class
• Professionals
• Businessmen
• Self-employed Professionals / Non – Professionals
• NRIs
• Pensioners
• Employees of other banks with NOC from employer concerned

Security:

• Hypothecation of Vehicle purchased out of the loan amount

• For loans above Rs.25 lakhs, for portion beyond Rs.25 lakhs, 100% collateral security in the
form of immovable properties/NSC/Fixed Deposits/Surrender Value of LIC Policies
• However, irrespective of loan limit, Tangible security/Guarantee may be insisted based on
the risk perception of the individual proposal

Documents Required:

1. Completed Application Form with passport size photograph

2. Proof of Identity such as PAN Card / Voter’s ID/Passport/Driving License
3. Proof of residence such as Recent Telephone Bill / Electricity Bill / Property Tax Receipt
4. Proof of business address in respect of businessmen / industrialists.
5. Proof of Employment.
6. Salary Certificate
7. Balance Sheet for the past three financial years in the case of Professionals, Businessmen.
8. Income Tax / Wealth Tax (if applicable) Returns for the past 3 years
9. Statement of Bank Account or copy of Bank Passbook for 6 months
10. Copy of Driving License
11. Quotation for Vehicle to be purchased from the authorized dealer
IB Education Loan (IBA)

Eligibility

Student borrower should have secured admission to a higher education course in recognized
institutions in India or abroad through entrance Test/Merit based Selection process after
completion of HSC (10 plus or equivalent)

Nationality

1. Resident Indian
2. NRI
3. Persons of Indian Origin (PIO)
4. Overseas Citizen of India (OCI)
5. Student born Abroad

Eligible Courses

For Studies in India (Full time Course):

o Courses as initiated under various Government subsidy schemes.

o Approved courses leading to graduate/ post graduate degree and PG Diplomas conducted by
colleges/ universities recognized by UGC/ Government/(AICTE)/(AIBMS)/(ICMR) etc.
o Courses like ICWA, CA, CFA etc.
o Courses conducted by (IIMs), (IITs), (IISC), (XLRI), (NITs), (NIDs), (NIFTs) etc.
o Diploma courses like Aeronautical, pilot training, shipping, etc., or any other discipline
approved by Director General of Civil Aviation/Shipping or any other regulatory body.
o Approved courses offered in India by reputed foreign Universities.

Repayment Period

▪ Education Loan (Study in India, Abroad): Up to 180 EMIs, commencing immediately

after the moratorium period
▪ Executive Management Programme/Executive MBA: Up to 120 EMIs commencing
from the next month after first disbursement and No Holiday Period
▪ Moratorium period: Course period plus Holiday Period of one year (maximum), in all
cases
Kisan Credit Card (KCC)
Purpose / Objective:
• To meet out the short-term credit requirements for cultivation of Crops, Post-harvest expenses.
• Consumption requirements of Farmer Household.
• Working Capital for maintenance of farm assets.
Eligibility:
• All Farmers- Individuals/ Joint Borrowers who are owner cultivators.
• Tenant Farmers, Oral Lessees and Share Croppers.
• Self Help Groups or Joint Liability Groups of Farmers including tenant farmers, Share
croppers etc.
Salient Features:
• Scale of finance for the crop x Extent of area cultivated + 10% of limit towards post-
harvest / household / consumption requirements + 20% of limit towards repairs.
• An additional 10% of the Crop Loan Component increase in Scale of Finance for every
successive year
• Validity of KCC is for 5 years.
• No Margin.
• No processing fee up to of Rs. 3.00 lakh.
• Interest subvention /incentive for prompt repayment
• One time documentation at the time of first availment and thereafter simple declaration (about
crops raised/ proposed) by the farmer.
• KCC account holders can operate the KCC account through Branch, ATM, BC Points, PoS
machines with input dealers/ merchants/ mandies.
Interest Rates: Presently interest rate for short term crop loans/KCC sanctioned to farmers up
to Rs 3.00 lakh is 7% as per extant interest subvention scheme of Government of India).
Repayment:
Each withdrawal under the short-term sub-limit be allowed to be liquidated in 12 months without
the need to bring the debit balance in the account to zero at any point of time. No withdrawal in
the account should remain outstanding for more than 12 months.
Security:
• For KCC limits up to Rs.1.60 Lakh: Hypothecation of Crops
• For KCC limits up to Rs.3.00 Lakh (With tie up arrangement): Hypothecation of Crops
Dairy Loan
Target Group:

Individual farmers, SHGs &JLGs, Corporates including Farmer producer companies of individual
farmers, Partnership firms and Co-operatives of farmers directly engaged in Agriculture.

Objective:

Term Loan: For setting up of Dairy unit (Purchase of high yielding Milch Animals, Construction
of Shed, Purchase of Equipment Cultivation of Green Fodder)

Cash Credit: To meet short-term working capital requirements (Feed, labour, Veterinary aid etc.)
under KCC Animal Husbandry model.

Quantum Of Finance:

• Term Loan: Based on Unit cost fixed by NABARD / individual project cost.
• Cash Credit: Limit to be arrived based on Scale of Finance fixed by DLTC.
• MUDRA: Term loan or Working capital up to maximum of Rs.10.00 lakhs.

Margin Norms:

• For Limit up to Rs.1.60 Lakhs – NIL.

• Limit above Rs.1.60 Lakhs – 15% to 25% of project cost.
• Under MUDRA: Shishu – Nil, Kishore – 10%, Tarun – 15%.

Repayment Period:

Term Loan: Maximum 72 months including gestation period of 1 month.

Processing Charges:

• Term Loan: Up to Rs. 25000/-: NIL

• Above Rs. 25000: 0.50% of the limit sanctioned

Working Capital:

• Upto Rs. 25000: NIL Above

• Rs. 25000/- up to Rs. 50 Lakh: Rs. 250 per lakh or part thereof Min. of Rs. 250
• Above Rs. 50 Lakh: Rs. 350 per lakh or part thereof.
 Jewel Loan

Eligibility Individuals including Senior Citizens

Minimum Entry Age 21 years

Maximum Exit Age 70 years

Domestic needs, consumption, family function, medical expenses and any bankable
Purpose
activity, other than speculative

1. Bullet Repayment

• Entire loan amount is repayable at the end of period along with interest
• Quantum of Loan:
• Max. Loan Amount: Rs.35.00 lakhs per borrower
Type of Facility • Repayment Period: Maximum 12 months
2. Monthly Repayment
• Repayable in monthly instalments with interest
• Quantum of Loan: 70% of market value of the Jewels pledged or Per
gram advance value of Jewels, whichever is lower
• Max. Loan Amount: No cap
• Repayment Period: Maximum 35 months

Appraiser Fee To be borne by the applicant

Security Pledge of jewels

Documents • Duly filled in application form

Required • Identity proof
• Address proof
MSME LOAN

IND SME Secure

• Micro, Small & Medium Enterprises (Manufacturing &

Target Group Services Sector)

Working Capital Requirements, Purchase of Fixed Assets,

Purpose Construction of Building etc.

• Working capital in the form of Secured Overdraft / Open Cash

Credit / Packing Credit / Bill purchase, etc.
Nature Of Facility • Term Loan
• Non-Fund Based facilities: Letter of Credit / Bank Guarantee

Minimum Exposure: Above Rs.10.00 Lacs

Amount Of Loan Maximum Exposure: No Ceiling

• 25% on Stocks and Book Debts

Margin (Promoter’s • 25% on Plant and Machinery in case of new machines
Contribution) • 50% on Plant and Machinery in case of second-hand machines
• *30% on Building construction estimate

Repayment Period Term Loans – Maximum repayment period of 15 years.

Primary Security:
Secured OD: Mortgage of immovable property
OCC: Hypothecation of Stocks and Book Debts

Security TL – Machine / Bldg. – Hypothecation / Mortgage of assets.

LC / BG / IBN / FBN – As per extant guidelines.
Collateral Security:
Secured OD: Hypothecation of stocks & book debts.
IB MICRO

All Micro units (Manufacturing and service sector – Priority Sector –

Target Group
existing units (with good track record) as well as fresh units.

Purpose Term loan requirement plus working capital -as composite loan.

Nature of Facility Composite loan

Amount of Loan Maximum exposure – Rs 20.00 lacs

Repayment Period 60 EMIs after a holiday period of 6 months.

Security o Assets created out of the loan.

o CGTMSE cover to be taken – Mandatory

CORPORATE LOAN
Our Bank has a product viz., Corporate Loan which will help our clients to manage their cash
flow efficiently.

Corporates and Partnership firms and LLPs

Eligibility
Under MSME – only Medium Enterprises

Purpose Any Bankable purpose including NWC improvement

Loan Amount Requirement of Rs.1 Crores and above

Period / Tenor 6 Months to 5 Years

Repayment – Principal Monthly / Quarterly / Half yearly based on cash flows.

First charge / Paripassu first charge / standalone security / subservient

Security
charges / Escrow of receivables / personal – corporate Guarantee

Processing & Other Processing charges [at] 1% plus GST. All other charges as per
Charges guidelines.
Total loans sanctioned by INDIAN BANK:

Financial Year Loan Amount (in crores)

2022-23 598400
2021-22 538529

2020-21 518639
2019-20 499986

2018-19 488334

70000
LOAN SANCTIONED
598400
60000
538529
518639
488334 499986
50000
Amount (in cores)

40000

30000

20000

10000

0
2018-19 2019-20 2020-21 2021-22 2022-23
Financial Year

Interpretation:

Form the above graph we can understand that, the Indian Bank providing more loans to their
customers. In this from the year 2018-19 there is an increased of Rs.48800crores. In the year 2019-
20 increased Rs.49998 crores, in the year 2020-21 again increased Rs.51863 crores, and in the
year 2021-22 it increased to Rs.53852 crores. So, we can see that the increasing in loans of IB by
every year, because of it provides loans in a low rate of interests.
Total Deposits of INDIAN BANK:

Financial Year Total Deposits (Amount in crores)

2022-23 621166
2021-22 593618

2020-21 578820
2019-20 550033

2018-19 529879

TOTAL DEPOSITS
700000
621166
593618 578820
600000 550033
529879
500000
Amount (in cores)

400000

300000

200000

100000

0
2022-23 2021-22 2020-21 2019-20 2018-19
Financial Year

Interpretation:

From the year 2019-20 Indian Bank deposits are increased Rs. 550033 i.e., 13.07%, in the year
2020- 21 increased Rs.578820 i.e., 9.76%, and in the year 2021-22 it is increased Rs.593618 i.e.,
18.14%, and in the year 2022-23 it increased Rs.621166 i.e.32.35%. we can clearly understand
that the rapid growth in the IB deposits.
RATIO ANALYSIS

1) CREDIT DEPOSIT RATIO: CDR= Total Loans or Credit/ Total Deposits

Year Credit/ Advances Deposits Credit Deposit Ratio

2018-19 1209829 1394409 0.86
2019-20 1300026 1576793 0.82
2020-21 1463700 1730722 0.83
2021-22 1571078 2044751 0.77
2022-23 1934880 2706343 0.71

0.86
0.9 0.82 0.83
0.8 0.77
0.7 0.71
0.6
0.5
0.4
0.3
0.2
0.1
0
2018-19
2019-20
2020-21
2021-22
2022-23

Credit Deposit Ratio

Interpretation:
The credit deposit ratio in the year 2018-19 is 0.86, 2019-20 is 0.82, 2020-21 is o.83, 2021-22 is
o.77 and 2022-23 is 0.71. The average credit deposit ratio of IB over the study period was 0.80.
It indicates that out of every 100 deposits, Rs.80 being lent and hence it is clear that the IB may
not have enough liquidity to cover any unforeseen fund requirement.
Q1: Are you aware of products and services provided by Indian Bank?

No. of Respondents Percentage (%)

Yes 32 80%

No 8 20%

Total no. of People 40

Aware of Indian Bank products & services

20%

YES
NO
80%

Interpretation:
From the above data it is clear that is 80% of the people of the Darbhanga have the idea about the
products and services of IB. And the remaining 20% of the people have the idea about the product
they are using. These people are typically from rural areas.
Q2: Which loan product of Indian Bank you have used?

Different loans No. of Respondents Percentage (%)

Home Loan 14 35%
Vehicle Loan 8 20%
Education Loan 12 30%
Personal Loan 4 10%
Other 2 5%
Total No. of People 40

Loan product used by customers

5%
10%
35%
Home loan
Vehicle loan
30%
Education loan
Personal loan
20% Other

Interpretation:
From the sample size of 20 people, 35% (7) of the people are using the IB Home loans, 20% of
people using car loan, 30% of people took education loan, 10% of people using personal loan and
5% is using other loans of IB. Some people are taking 2 types of loans like education loan and car
loan.
Q3: How do you prefer to pay your Loan Instalments?

No. of Respondents Percentage (%)

Monthly 14 35%
Quarterly 18 45%
Annually 8 20%
Total No. of People 40

Loan payments in Instalments

20%
35%

Monthly
Quarterly
Annually
45%

Interpretation:
From the above the people are pay their instalments on their loan in different periods. 35%
people are preferring to pay the instalment in monthly basis, 45% of the people are like to pay
the instalments in quarterly and 20% of people are interested to pay in annually.
Q4: For how many years do you want to avail Loan?

Period No. of Respondents Percentage (%)

Less than 1 year 4 10%
1 to 3 years 6 15%
3 to 5 years 12 30%
Above 5 years 18 45%
No. of People 40

No. of years for Repayment of Loan

10%

15%
45%
Less than 1 year
1 to 3 years
3 to 5 years
30% Above 5 years

Interpretation:
From this we get to know that 10% of people like to repay their loan within 1 year, 15% of
people like to repay within 1 to 3years. And 30% person who took small business loan they
prefer More than 3 to 5 years. And 45% of people who home loan like to repay the loan amount
in above 5 years.
Q5: Is the rate of Interest on Loans are very low of Indian Bank compared to
other banks?

No. of Respondents Percentage (%)

Yes 26 65%
No 14 35%

No. of People 40

Response towards Interest rates

35%

YES
65% NO

Interpretation:
From the above we can understand that the 65% of the people are think that the interest rates of
the Indian Bank on loans is low comparing to other banks. But only 35% of the people is think
negative through this sample.
Q6: On which bank you depend for your regular transactions?

Banks No. of Respondents Percentage (%)

ICICI 6 15%

HDFC 8 20%
Indian Bank 24 60%

Other 2 5%
No. of People 40

Response from people

5% 15%

20% ICICI
HDFC
Indian Bank
60%
OTHER

Interpretation:
It has been discovered that approximately 60% correspondents are using the carrier of Indian
Bank for their daily transaction, round 15% of humans are using ICICI financial institution for
his or her transaction and best 20% of humans are using HDFC & 5% another bank provider
respectively in Darbhanga. It additionally indicates that Indian Bank have the highest market
role in Darbhanga as according to my pattern.
Q7: Are you Assessed to Tax?

No. of Respondents Percentage (%)

Yes 24 60% (12)
No 16 40% (8)
No. of People 40

No. of people Assessed to Tax

40%

YES
60%
NO

Interpretation:
In this survey we were given to realize that 60% of the humans are assessed to TAX and helps in
boom of the country’s economy. 40% of human beings are not assessed to TAX. From this we
were given to recognise that there may be extra Tax payer in Darbhanga.
Q8: What do you feel about the services provided by the Indian Bank in
Advance products?

No. of Respondents Percentage (%)

Excellent 10 25%

Good 22 55%

Satisfactory 8 20%

Bad 0 0%

Total No. People 40

Customer perception towards Indian Bank Advanced

products
0%

20% 25%

Excellent
Good
Satisfactory
Bad
55%

Interpretation:

The people are using different products and services of the Indian Bank, and the sample of 20 people
the 25% people are giving excellent feedback, 55% of the people are gave good, 20% of the people are
satisfactory. In this there is no one is giving bad feedback about Indian Bank products and services.
 CHAPTER- 5

FINDINGS,
SUGGESTIONS AND
CONCLUSION
FINDINGS:

▪ From this project it is found that Indian Bank advance product having the good
place in the market at Darbhanga, there is a great opportunity to compete with
its competitor & to retain its customer by fulfilling the requirement of customer
in Indian Bank advance product.
▪ In this project it is found that the sanctioning of loans and advances are increased
by the bank every year. And it is providing these loans and advances at a low
interest rate.
▪ From this project the deposits of the Indian Bank are increasing by every year.
▪ It has been located that about 80% correspondents are using advance
manufactured from Indian Bank and 20% are not using any sort of increase made
from Indian Bank in Darbhanga.
▪ All Indian Bank customers are glad with the services supplied by using the
financial institution.
▪ Many of these clients satisfied with the low hobby price and longer repayment
length of the advance product.
▪ Most of the clients at Darbhanga favour to take mortgage from Indian Bank.
▪ Approximately 25% of increase product users stated that the service of Indian
Bank in advance product is exceptional.
▪ A reaction from customer care is so clean & appropriate.
▪ Many customers have no time to call customer care in order that they are no
longer able to understand about the service & functions of Indian Bank develop
product.
▪ Most clients are shifted from different bank’s boost product to Indian Bank
because of hidden costs, high hobby rate, less reimbursement duration.
▪ Government employees are extra situation than personal personnel for enhance
product.
▪ In 2022-23 the Indian Bank has the net profit of Rs.1447.3 crores.
▪ The equity shareholders getting better returns on their capital in the year 2023.
 SUGGESTIONS:

▪ Purchaser recognition software is needed in order that more people must attract
toward strengthen product.
▪ If there are any kind of hidden prices than that must disclose to consumer earlier
than giving loan to them.
▪ Indian Bank ought to take feedbacks of clients regarding capabilities & services.
▪ Indian Bank need to take some steps so that customers can get their loan in time.
like cell phone verification with the aid of client care that one customer is were
given their mortgage on time or not.
▪ Indian Bank need to greater problem about physical verification as opposed to
cell phone verification so it will keep away from fraud or cheating.
▪ Indian Bank client care should extra subject about the quickest settlement of
client troubles.
▪ Before deducting or charging any financial rate Indian Bank must discuss with
customer.
▪ The bank must growth the period for repayment of mortgage.
▪ Indian Bank need to awareness on Segmentation based on customer know-how
Product imparting primarily based on customer demand.
▪ Boost product promoting retailers should now not give any kind of wrong
information regarding increase product.
▪ It is the duty of the bank to disclose all the cloth information regarding develop
product, like interest charged, compensation duration, different forms of prices,
etc.
CONCLUSION:

From the analysis component it can be finish that the clients have an amazing reply
toward Indian Bank increase merchandise. Indian Bank function having massive
wide variety of customers and offering right offerings to them. The bank has a wide
client base, so the financial institution has to concentrate on this to preserve those
customers.

In gift situation Indian Bank is the leading advance product issuer in India. Within
a totally short period of time the fulfilment made by using Indian Bank is super,
what an everyday financial institution can’t expect, but it's miles being carried out
through Indian Bank. It occurs due to employee determination closer to the
organization, quickest growing Indian economy, and brand photograph.

The present research work dealt with the performance of the Indian Bank with
reference to Ratio analysis and percentage analysis. There is a sufficient progress
and better performance in the last financial year. The performance of the Indian
Bank has been analysed in detail in terms of deposit mobilisation, loans and
advances, invest position, earning and profitability efficiency.

In the economic year 2022-23 the Indian Bank attributed the net profit up to 47% to
Rs. 1447.3 cr. increase trading income and expanded marketplace to marketplace
and better provision.

We also came to know about the total process of disbursing a commercial loan and
all its related aspects and the various types of loans available under the roof of Indian
Bank. However, the bank is seen to be taking lot of initiative in attracting customers,
helping them financially and provide expert support as and when required to its
nearby business units to either setup or expand its operations.
BIBLIOGRAPHY

Web Resources:

https://indianbank.in/en/

https://www.moneycontrol.com/financials/indianbank/balance-sheetVI/IB04

www.rbi.com

Wikipedia

https://en.wikipedia.org/wiki/Indian_Bank

Books:

❖ Marketing Management 16e- by G. Shainesh Philip Kotler, Kevin Lane Keller,

Alexander Chernev, Jagdish N. Sheth | 1 April 2022

❖ Central Banking in India- Bhat K.G.

❖ T.N. Chhabra, Human Resource Management

Reports/Articles Refereed:

❖ Annual Reports of INDIAN BANK for the last five FY (2018-23).

ANNEXTURE

QUESTIONNAIRE ON INDIAN BANK LOAN PRACTICES

Date: ____________

Name: _________________

Occupation: ___________________

1) Are you aware of products and services provided by Indian Bank?

a) Yes

b) No

2) Which loan product of Indian Bank you have used?

a) Home loan

b) Car loan

c) Education loan

d) Personal loan

e) Other

3) How do you prefer to pay your loan instalments?

a) Monthly

b) Quarterly

c) Annually

4) For how many years do you want to avail loan?

a) Less than 1 year

b) 1 to 3 years

c) 3 to 5 years
d) Above 5 years

5) Is the rate of interest on loans are very low of SBI compared to other banks?

a) Yes

b) No

6) On which bank you depend for your regular transactions?

a) ICICI

b) HDFC

c) INDIAN BANK

d) OTHER

7) Are you assessed to Tax?

a) Yes

b) No

8) What do you feel about the services provided by the SBI in Advance products?

a) Excellent

b) Good

c) Satisfactory

d) Bad