Affiliated to GBTU,LUCKNOW

FINANCING SMALL SCALE INDUSTRIES SBI VIS--VIS OTHER BANKS

NAME OF THE STUDENT: JYOTI YADAV

PROJECT MENTOR (AT THE BANK) Mr. DINESH PODAR

JUNE 14-2013 TO AUG 14-2013

DECLARATION
I Jyoti Yadav hereby declare this Summer Training Report entitled Financing Small Scale Industries SBI vis--vis other submitted in partial fulfillment of the requirement of course the curriculum of MASTER OF BUSINESS ADMINISTRATION. It is an original work and has not been submitted for the award or similar title elsewhere.

Place: Varanasi Jyoti Yadav

MBA 3rd Sem.

ACKNOWLEDGEMENT
Way to express the Gratitude. If Practical knowledge carves and sharps the carrier of a person practical experience polishes it and luster and brilliance to it. The satisfaction that accompanies that the successful completion of any task would be incomplete without the mention of people whose ceaseless co-operation made it possible. First of all I would like to Thanks to Mr. Dinesh Podar (Branch Manager), SBI Bhelupur for his technical support & immense poll of knowledge which he is so very graciously placed and my disposal. His persistent helps & expertise in project works has been of immeasurable help. I completed the project to the best of my abilities & within available time.

Jyoti Yadav
MBA 2nd Sem.

INTRODUCTION
( Students Profile)

PERSONAL DETAILS NAME : - JYOTI YADAV FATHER NAME : - A.K.YADAV MOTHER NAME : - PHULWASI YADAV DATE OF BIRTH : 08/03/1989 ADDRESS : - B-59 Ashok Nagar, Varanasi EMAIL ID :jyotiyadav.varanasi@gmail.com CAREER OBJECTIVE: To work with that organization that gives me the opportunity to proves myself so that it can be beneficiary for both the organization as well as for me. PROFESSIONAL QUALIFICATIONS Pursuing M.B.A from Rajashri School Of Management And Technology affiliated to G.B.T.U.

With immense pleasure and deep sense of sincerity, I have completed my Industrial training. It is an essential requirement for each and every student to have some practical exposure towards real world situations. A systematized practical experience to inculcate self confidence in a student so that they can mentally prepare themselves for this competitive environment.

The purpose of training are:

1. Developing intellectual ability of student

2. Bring confidence

3. Developing skills

4. Modify Attitudes

TABLE OF CONTENT
S.NO TOPIC PAGE NO.

1.

INTRODUCTION Industrial Estate Ram Nagar, Chandauli

State Bank of India Financing The SSI 2. Impact of SSI on Other Bank BOB Union Bank of India 2 Research Methodology Collection of Data 3. 4. 5. 6. 78. Analysis and Finding Limitation of study -Recommendation Significance Conclusion Bibliography

The industrial sector plays an important role in the economic growth of both developed and developing countries. The Small Scale Industrial (SSI) sector is very important for any country irrespective of the level of development because, SSI contributes maximum socio economic benefits with low level of investment and results in employment creation, income generation, poverty alleviation and restricts migration of unemployed and underemployed workers into cities. It is also one that maximizes the utilization of local resources and results in innovations, new technology and is a pathway to emerging entrepreneurs. It is a starting point for industrial growth. However, systematic economic policies have not been designed for the development of smallscale industries yet, in India. Therefore smallscale industries face a lot of difficulties with regard to financial, marketing, cost of production, skilled labor and lack of technology. Lack of access to credit is recognized as one of the most pressing problems faced by small scale industries (SSI). Traditional financial institutions are usually unwilling to lend money to small industries because of high transaction costs. Thus successive governments have frequently provided small and medium scale industrialists with relatively cheap lines of credit. Most small industries currently

in operation have faced the danger of running at a loss. This study considered the effectiveness of the loan scheme (SMILE 1 & 11) and the factors contributing to its effectiveness. The existing loan schemes had been considered as a variable in the study. The study was carried out in the Ramnagar Industrial Area, Varanasi District in Uttar Pradesh. The study reveals that the SMILE loan scheme has not been able to fulfill its already set objectives due to inefficiency of the loan giving institutions, the small scale industries and overall economic conditions. Institutions are not adequate flexible and have not given the required amount of l have proper records, knowledge and experience. From the perspective of the economy the short term profit and small loans required by this sector involved high transaction costs and profitability is limited owing to economic conditions. Small and medium scale industries (SMIs) have been considered essential for economic development not only in less developed countries (LDCs) but also in more developed regions of the world. Since they are seen as being more dynamic, innovative and have higher labor absorptive capacities than their corporate counterparts, the SMI sector has been the backbone of industrial development in many developed countries. SMIs have played a significant role in Varanasieconomics development. SMIs have been estimated as providing 44% of total employment and have fulfilled important functions such as being the foundation for local entrepreneurship and innovation, as critical supporting industries and as a service base for multinational companies (Williams, 1999).

According to the Annual Survey of Industries undertaken by the Department of Census and Statistics, small firms(i.e.2529 persons engaged) accounted for 46% of total firms surveyed, while medium firms (i.e30199 persons engaged) accounted for 36% of total firms surveyed. The SMI sector is often quoted as accounting for 65% of industrial employment in India. According to the 1996 Annual Survey of Industries small firms accounted for only 3% of total employment and medium firms accounted for 17% of total employment. In terms of value of output small and medium firms accounted for 1% and 19% respectively, (Williams,1999). The industrial sector was relegated to the background during the colonial era. Then the focus on economic policy, in so far as one could talk of an economic policy during this period, was export oriented agriculture and related trade and infrastructure facilities. During the period prior to the Second World War, the little manufacturing activity there mainly in was in the processing of primary products such as tea, rubber and coconut for export. In addition, there were traditional cottage industries (Lakshman, 94). After political independence in 1948, economic policies were for some time, biased against industrial development. After independence, there was no policy to develop the SMIs sector however between 1959 to 1977 private sector was encouraged to setup small industries by offering incentives such as tax relief, depreciation allowances and credit facilities. Several institutions were set up for development of SSI sector by government such as Industrial Development Board (IDB), Department of Small

Industries, State banks etc.

National Institute of Small

Small Scale industries encompass vast scope covering activities like manufacturing, servicing, financing, construction, infrastructure etc. In view of Government of Indians given to the small scale industries in the national economy more & more small scale industries are to be set up in the years to come. By contributing its increasing share employment & exports, small scale industries also contribute to the economic development of the country. However, these industries are also plagued by the problems of raw material, finance, marketing, underutilization of capacity, etc. cash has become a big problem for small & even big businesses today. Lack of finance has driven many small business units into bankruptcy. Unfortunately many small businesses will become bankrupt because their owners have neglected the principal of cash management which normally determines their successes or failure. Cash is like oxygen to a business. Small scale enterprises, given their small resources find it difficult to have these own. Finance has been the important resource to start & run an enterprise4because it facilitates the entrepreneur to procure land, labour, material, machine& so on from different parties to run his/her enterprise. Report of third all India censuses also clearly indicate that lack of demand& shortage of working capital are the main reasons behind sickness/ incipient sickness of registered & unregistered small scale industries. Developing cash forecast is essential for new business because early

sales do not generate enough cash to keep the company afloat. Better financial management can lead the company ahead in competition as well as it will help the entrepreneur to avoid the situation of bankruptcy & industrial sickness. This paper is an attempt to understand various financial techniques to help the entrepreneurs to avoid the situation of industrial sickness Finance is the key input of production distribution& development. It is therefore aptly- blooddescribedindustry&of is as the prerequisite for accelerating the process of industrial development. Especially in case of small scale industries, finance is the key input in growth & development. The financial investment of these small units comes mainly from within; most of them invest their own funds or borrowed funds. Much less comes from banks & government channels. Small scale entrepreneurs face a lot of problem while availing loan facility form commercial banks as well as Government agencies. Financial institutions ask for a lot of information& data, state financial corporation takes several months to take decision on extending term loans small scale sector are not in a position to offer guarantee required by the banking sector. Even when small loans can be raised from Government agencies the procedure is so cumbersome that most of the entrepreneurs, who either are illiterate or semiliterate, hesitate to make use of these facilities. This makes matter very difficult for the small industrialist, particularly when he is new to this way of life, & he has to deal with both state financial corporation as well as banks. Quite often few get fed up at this stage & give up.

The word bank it derived from t banque that is French.

There was other of the opinion that the word bank derived from the German word back me Italianized into banco. But whatever as Prof. Rramchandra Rao says. It w banking in Europe from middle ages.

Generally, banks do the business of money they take deposits of moneys from client and give loan to the person who has need of money. But in this age, for the convenience of customer, banks provides some other services to their customer such as bankers cheque, overdraft, internet banking, ATM facility, paying of bills, credit card, telegraphic transfer, insurance, demat etc.

For a people, it is difficult to keep a very big amount of money in his house safely. So, people save their money to bank. Bank gives loan to the person who has need of money and gets higher interest on it than the interest of deposit. The margin between the interest of loan and interest of deposit is the income of bank.

SMEs Financing The Rising India The only way out of the mire is that the Indian manufacturing sector could be strengthened by the existing rural systems and

making them self-sufficient. This could take place only by helping Small and Medium Enterprises and the rural artisans (people with innate skills and talents) in becoming effective and competitive enough to face the future. A number of issues and business practices of global players and markets can be observed, learnt and adapted for ensuring competitiveness of Indian SMEs. Let us take an anecdote, which is a part of the school days about the meaning of domestic and global competition. It is about two friends who while walking through a dense forest suddenly hear the roar of a bear. One of them immediately changes his shoes that he is wearing in, to the one, he uses for running. His friend asked him: If you think you can out beat the bear? The idea is not to beatThethemoral bear, of the but story is that the Indian SME sector should be strong enough to out beat the other players in the economy and not the competition itself. SMALL and MEDIUM enterprises (SMEs) play a catalytic role in the development of any country. They are the engines of growth in developing and transition economies. In India they account for a significant proportion in manufacturing, exports and employment, and are major contributors to GDP. Considering the growth potential of Indian SMEs, the Government of India has asked public sector banks to achieve a minimum 20 per cent year-on-year growth in the funding of SMEs that will lead to double the flow of credit to the sector from Rs 7,000 crore in

2004-2005 to Rs.35,000 crore by 2009-2010. A small-scale unit is defined as one having original investment in plant and machinery not exceeding Rs 1 crore. While recognizing the needs for larger investment in some of the more important segments of small scale industries (SSIs), the Government has enhanced this to Rs 5 crore for specified industries. The Government felt that a separate category of medium enterprises (MEs) needs to be recognized and, accordingly, the new policy package clearly defined the medium enterprises as those units having investment in plant and machinery above the small-scale industry limit and up to Rs 10 crore, as recommended by the Working Group on Flow of Credit to the SSI sector, headed by Mr A. S. Ganguly.

The Importance of Small and Medium Enterprises (SMEs) in any economy cannot be overlooked as they form a major chunk in the economic activity of nations. They play a key role in industrialization of a developing country like India. They have unique advantages due to: their size their comparatively-capital ratio high labor need a shorter gestation period focus ivelyonsmallerrelatmarkets need lower investments ensure a more equitable distribute facilitate an effective mobilization skills which might otherwise Stimulate theustrialgrowthentrepreneurshipofind.

remain unutilized and

According to a UNIDO report, supports for SMEs are generally based on three assumptions. it sustains a broad and diversified employment and thus benefits the second, MEa sectorstrongwillnot Submerge without support country as a whole

from the state, but they suffer disadvantages in the markets because of their size the programs aimed at smallest justified more in terms of their welfare impact than their economic efficiency.

Indian SME at a Glance In India, SME sector accounts for around 95% of the industrial units, 40% of the value added in the manufacturing sector output, 34% of exports and provides direct employment to 20 million persons in around 3.6 million registered SME units. The SME sector in India contributes to about -7% of 03. Now, the question is, Can it overtake the invasion of foreign companies through their innovative, quality, affordable/reasonable and readily available products? Of this in Ramnagar, Varanasi, SME Sector accounts to 10% of the industrial units. In developing countries like India, making the SMEs more competitive is particularly pressing as trade liberalization and deregulations increases the competitive pressures and reduces the direct subsidies and protection that Governments offer to SMEs. If our SMEs are to be competitive enough to withstand and fight back the foreign MNC products, they have to be nurtured. According to Porter, the only meaningful concept of national level is Productivity, which is the value of output produced by a unit of labor or capital. Productivity in turn depends on both the quality and features of products (which determines the prices that they can command) and the efficiency with which they can be produced. Productivity is the prim long-run standard of living; it is the root cause of national per capita income. Further, to find awns economy as a whole but on specific industries and industry segments. We must understand how and why commercially viable

skills and technology are created, which can only be fully understood at the level of particular i International trade and foreign investment can both improve a nations productivity as well as there industries to the test of international standards of productivity. An industry will lose out if its productivity is not sufficiently higher than its rivals to offset any advantage in the local wage rates. As wage rates in India are sufficiently less to attract multi-nationals, the only way is to increase the productivity of local small industries. This means, the increase in the productivity of labor i.e. human resources, the productivity of capital and that of the process, which in turn relates to the use of technology that yields quality and innovative products. According to Ex-Commerce and Industry Minister and President of the National Productivity Council, Mr. Arun Jaitley at the 47th meeting of NPC, It has become so comp of the labor, for reasons of higher productivity, has now shifted to female labor. If we look at other Asian economies, Bangladesh or Srilanka, Cambodia or Myanmar, we find that in manufacturing, it is female labor, which is being encouraged because they have been found more disciplined and hence with h

As every coin has two sides, similarly, even SME financing has a share in the overall financing. The following are the issues of SME financing: They are unable to capture market require large production facilities and thus could not achieve

economies of scale, homogenous standards and regular supply. They are experiencing difficulties as raw materials, machinery and equipments, finance, consulting services, new technology, highly skilled labor etc. Small size hinders the internalizes

market research, market intelligence, supply chain, technology innovation, training, and division of labor that impedes productivity. Emphasis to preserve narrow proof

SMEs myopic about the innovative improvements to their product and processes and to capture new markets. They are unable to compete with product quality, range of products, marketing abilities and cost. And most importantly, absence of a and other services those are available to raise money and sustain the business. Absence of Infrastructure, quality and limited options / opportunities to widen the business. Poor IT and Knowledge infrastructure

To overcome all these difficulties, Indian SMEs and rural artisans deserves all the policy support the Government can offer. What they need is, not protection but institutional support to fund modernization and technology up gradation, infrastructure support

and adequate working capital finance. Also they have to have professional inputs and knowledge about various happenings in their own industries in and around the country. This brings in the concept of SME networks and clusters that stimulate innovative and competitive SMEs. These concepts (are not something new, but can be traced back to Alfred Marshal districts in Britain in 1890s) essentially bring together various stakeholders like technology providers, labor force, financing arms, consultants, marketing arms, and others, for a common good that will help in enhancing the strength of SMEs. THE Indian SME (small and medium enterprise) market seems to be emerging a promising hunting ground for banks and financial institutions because it poised for tremendous growth. As the access of SMEs to capital markets is very limited, they largely depend on borrowed funds from banks and financial institutions. In majority of the economies, while the investment credit to SMEs was being provided by financial institutions, commercial banks extended working capital. In the recent past, with growing demand for universal banking services, the term loan and working capital are becoming available from the same source. Besides the traditional needs of finance for asset creation and working capital, the changing global environment has generated demand for introduction of new financial and support services by SMEs.

Brief Industrial Profile of Chandauli District 1. General Characteristics of the District Chandauli district derives its name from Chandra Sah, a Barhaulia Rajput who built the fort in the district. It was carved out from Varanasi district in 1997. Chandauli town is the district headquarters. Chandauli district is a part of Varanasi Division. Mughal sarai, a city in the district has the busiest rail station in the North Eastern Railways. The district has great natural beauty in the form of Chandraprabha Sanctuary and many waterfalls which include Devdari and Rajdari. District is not well developed particularly from view point of infrastructure and education. However, situation is slowly improving. Agriculture is the main occupation of the people of this district and rice and wheat are the main crops.

Location & Geographical Area. The District is located2535inN 2456longitut 8114 to 8424 E latitudes at a d south east of Varanasi. It is bonded on east by Bihar State, on the north and north east by Ghazipur District, on the South by Sonebhadra District, on the South -West by Mirzapur and on the North- West by Varanasi district. River Ganga separates the district from the districts of Varanasi

and Ghazipur. Total geographical area of the district is 2541 Sq. Km 1.2 Topography On the basis of geology, soils and topology, the distri ct is subdivided in the following three regions: I. Chakia Plateau: The region is comprised of southern part of Chakia tahsil. The 100 meter contour separates the region from Chandauli Plain. It is hilly tract with dissected surface. II. Chandauli Plain: The region comprises parts of Chandauli, Sakaldiha and Chakia Tahsil.The area under Chandauli tahsil is comparatively low which causes water logging during rainy season. Major part of the region is devoid of streams. III. Ganga Khadar: It is narrow belt along the Ganga river extending from one end of the district to the other end. Surface is low lying and subject to inundation during flood. Approach of flood water delimits the boundary of this region.

Availability of Minerals. Only Sand is available as a minor mineral in the district Chandauli which is used for construction of buildings. PRODUCTION OF MINERAL 2010 -11 S.NO. NAME OF MINERAL PRODUCTION IN CUBIC METER 2010-2011 MAJOR MINERAL 1. Nil -

MINOR 1. Sand 84000 Source: - Dept. of Mines & Geology, Chandauli 1.4 FOREST According to Revenue Department, the area under forest is 77,400 Hectare and almost ninety nine percent of it is found in Naugarh C.D. block of Chakia tahsil. There are forests on ridges offlat hill tops and foot hills but trees found in this region are generally of poor quality. Salai, Piar, Mahuwa, Tendu trees apart from usual trees are mainly found in the district. Dry green vegetation can be seen on the plateau region. The Naugarh C.D. block is covered with dense forest in which trees of Sakhu, Sagaun, Sheesham, Mahuwa, Aonla etc. are mostly found. Wood obtained from these trees is very useful for building construction, playing materials and for making wooden toys. The wax and honey is received f rom forest area in large quantity. Besides these, the Tendu leaves are also found in huge quantity, which is exported to other district also for making Beed 1.5 Administrative set up. The deputy commissioner heads administration of Chandauli district. He is top administrator and is responsible for good administration and planned development of the district. The district has been divided into three tehsils and nine blocks. Block development officer is the in- charge of the block. To maintain the general administration of the district there is one additional District

Magistrate. Administrative set up of the district also includes three Sub-Divisional Magistrates, one each of the Tehsils.

District at a glance

Existing Status of Industrial Areas in the District Chandauli. . Medium Scale Enterprises 3.5.1 List of the units in Chandauli & Near By Area i. M/s Gharana Foods Pvt. Ltd. Karwat, Dandi, Chandauli. ii. M/s M. P. Biscuit Pvt. Ltd. B -18, Indl.. area, Ramnagar, Chandauli. iii. M/s. Alaknanda Cement Pvt. Ltd. Indl.area Ramnagar,Chandauli. iv. M/s. Govt. Printing Press, Indl. Area Ramnagar, Chandauli.

v. M/s. S. A. Iron & Allied Pvt. Ltd. Jivnathpur, Chandauli. vi. M/s. Ganga Pulp & Paper Pvt. Ltd. A -6, Indl. Area Ramnagar, Chandauli. vii. M/s. R.A.S. Polytex Pvt. Ltd. E -11, Indl. Area Ramnagar, Chandauli. 3.5.2 Major Exportable Item - NIL 3.6 Potential for Development of MSMEs To support the agriculture sector there is a strong need to develop industrial sector, which can enhance the demands for raw materials for processing industries. The main processing industries operating in this district are: 1. Handicrafts industry 2. Khadi and handlooms 3. Agriculture and livestock based industries

4. Forest produce based 5. Fibre based other than handlooms 6. Chemical and allied product based 7. Minerals based general engineering industry Cottage industry, trade and services have traditionally been the other important sector contributing to the economy of the district, as has inward remittances by workers, both inland and overseas. Silk sarees weaving, electric fan manufacturing, fruit preservation, small wooden toy making etc have been traditionally undertaken. Most of these activities are in a state decline due to competition of similar products at much cheaper rates. 3.6.1 Potentials areas for service industry i. Photostat/Xerox Unit. ii. Repairing & Servicing of Two Wheelers/ Modern Garage. 11 iii. Dhaba. iv. Colour Photo Laboratories. v. Clinic/ Laborarotries for Pathological Testing. vi. Carpentry Units. vii. Automobile Body Building Unit. viii. Hotels /Restaurants ix. Tourism Centres.

x. Beauty Parlour. xi. Mobile repairing. xii. Photo Framing. xiii. Coal Depo. 3.6.2 Potential for new MSMEs i. Fruit Beverages ii. Red Brick Kiln (Fixed Chimney Type) iii . Steel Fabrication iv. Leather Boots & Shoes v. Engineering Workshop vi. Modern Rice Mill vii. Cold Storage. viii . Mineral Water ix. Agarbati Sticks Mfg. x. Stone xi. Agricultural Implements xii. Ceramic Industry xiii. Plastic Products xiv. Bread & Biscuit xv. Dal Mills xvi. Packaging Material xvii. Aaurvedic/Herbal Medicine xviii. Roller flour mills

xix. Jam, Jellies & Pickles. xx. Wooden Doors and Furniture.

Existing Clusters of Micro & Small Enterprises There is no any Cluster is existing in the Chandauli District. 4.1 DETAIL OF MAJOR CLUSTERS NIL 4.1.1 Manufacturing Sector NIL 4.1.2 Service Sector NIL 4.2 Details for Identified cluster NIL 5. General issues raised by industry association during the course of meeting General issues raised by industry association during the course of meeting i.e. Udyog Bandhu Meeting, Chandauli are as under: 1. Maintenance of industrial area (Road and Drainage) is not well. 2. Lack of Electricity. 3. Health & Safety. 4. Lack of awareness about Housekeeping 5. Bankers avoid accepting the cases under CGTMSE especially for the new entrepreneurs and insist for the collateral security.

The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

Bank of Bengal H.O.

Establishment

The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock banking in India. So was the associated innovation in banking, viz. the decision to allow the Bank of Bengal to issue notes, which would be accepted for payment of public revenues within a restricted geographical area. This right of note issue was very valuable not only for the Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the capital of the banks, a capital on which the proprietors did not have to pay any interest. The concept of deposit banking was also an innovation because the practice of accepting money for safekeeping (and in some cases, even investment on behalf of the clients) by the indigenous bankers had not spread as a general habit in most parts of India. But, for a long time, and especially up to

the time that the three presidency banks had a right of note issue, bank notes and government balances made up the bulk of the invertible resources of the banks. The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, fourfifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

Group Photograph of Central Board (1921)

First Five Year Plan In 1951, when the First Five Year Plan was launched, the development of rural India was given the highest priority. The commercial banks of the country including the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a statepartnered and state-sponsored bank by taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former Stateassociated banks as its subsidiaries (later named Associates).

The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking sub serving the growing and diversified financial needs of planned economic development. The

State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development The Bank is actively involved since 1973 in non-profit activity called Community Services Banking. All SBI branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. SBI business is more than banking because we touch the lives of people anywhere in many ways. SBI commitment to nation-building is complete & comprehensive. ASSOCIATE BANKS

State Bank of India has the following seven Associate Banks (ABs) with controlling interest ranging from 75% to 100%. 1. State Bank of Bikaner and Jaipur (SBBJ) 2. State Bank of Hyderabad (SBH) 3. State Bank of Indore (SBIr) 4. State Bank of Mysore (SBM) 5. State Bank of Patiala (SBP) 6. State Bank of Saurashtra (SBS) 7. State Bank of Travancore (SBT) As on 31st march, 2013 the financial information of State bank of India is given as under

Financial Details
Capital Borrowings Deposits Investments Advances
Net Profit

RS (in crore)
125,033.02 203,723.20 1,627,402.61 519,393.19 1,392,608.03 18,322.99

Source : balance sheet and profit and loss accounts schedule of state bank of India from annual reports of year ending 31st march, 2013

General Shareholder Information Number of shareholders as on 30.9.2004 was 5.61 lacs. The shareholding pattern was as under.

Reserve Bank of India Non-residents (FIIs, OCBs, NRIs) Banks, FIs including insurance companies Mutual funds/UTI Domestic companies/private corporate bodies/trusts Resident individuals

60.15% 18.52% 11.01% 4.70% 1.54%

4.08 %

Domestic companies/privat e corporate bodies/trusts 2% Banks, FIs including insurance companies 11% Non-residents (FIIs, OCBs, NRIs) 18% Mutual funds/UTI 5%

Chart Title

Resident individuals 4%

Reserve Bank of India 60%

MISSION

To retain the Banks Position a Financial Services Group, with world class standards and significant Global business, committed to excellence in customer, shareholder and employee satisfaction and to play a leading role in the expanding and diversifying financial services sector while continuing emphasis, on its development banking role.

DR. KALAM TALKS ABOUT SBI PLAN AND MISSON

EW DELHI : President A.P.J. Abdul Kalam on Tuesday chalked out a seven-point action plan for the State Bank of India (SBI) while urging the country's premier bank to create a Rs. 5,000-crore venture capital fund and hike lending to the farm sector. In his address at the SBI's Bicentennial Celebrations here, Mr. Kalam noted that within the next three years, the bank should raise the credit to the farm and agro-processing sector from 10 to 20 per cent of its total loan disbursal. Agricultural growth, he said, was lagging behind while sectors such as manufacturing and services were showing robust increases. A higher credit disbursal, he said, was essential to hike farm growth to over four per cent as it was a vital requirement for increasing the overall Gross Domestic Product growth to 10 per cent. Unveiling his plan, Mr. Kalam asked the SBI to allocate Rs. 5,000 crores as venture capital from 2007-08 for the purposes of funding innovative scientists and technologists for speedier societal transformation. This would include the development of ICT products, software development and software services. The President also advised the bank to create and nurture five rural development projects, on the lines of the bio-fuel project and seaweed project, as it had the potential to provide employment to 50 lakh persons in the rural areas at the least.

Mr. Kalam also asked the SBI to adopt and innovatively fund at least one lakh sick units in the small-scale sector to infuse the latest technology and turn them into profitable ventures. Another sector with great potential, Mr. Kalam said, was medical tourism in which the bank could extend funds at competitive interest rates for setting up corporate hospitals which would also serve the rural areas. Likewise, yet another sector for the bank's participation, he said, was infrastructure development, including provision of 50

million quality houses with basic infrastructure in rural areas in association with state and Central entities. Turning to the plight of villagers caught in the ``vicious cycle of borrowing,'' Mr. Kalam asked the SBI to adopt a ``villager-friendly'' banking system to free them from the clutches of money-lenders. Mr. Kalam also lamented that hassle-free loans were being extended by the SBI to students of only the best engineering colleges, medical colleges and business schools. ``I would request the SBI to examine the possibility of providing loans to students who would like to pursue science and commerce as a career," he said. Besides, ways should be found to fund the education of those meritorious students who could not get admission to top engineering, medical and B-schools owing to stringent competition, Mr. Kalam said.

An entrepreneur requires a continuous flow of funds not only for setting up of his/ her business, but also for successful operation as well as regular upgradation/ modernisation of the industrial unit. To meet this requirement, the Government (both at the Central and State level) has been undertaking several steps like setting up of banks and financial institutions; formulating various policies and schemes, etc. All such measures are specifically focussed towards the promotion and development of small and medium enterprises. The public sector banks are the major source of financial assistance to the industrial sector. They extend credit support to the firms in the form of loans, advances, discounting bills, project financing, term loans, export finance, etc. Some of the major examples of such banks are:-

1. State Bank of India (SBI) provides a wide range of financial products and services that can cater to any business or market requirement. It deploys multiple channels to deliver integrated solutions for all financial challenges faced by the corporate universe. Its various funding schemes are:

Working capital finance, extended to all segments of industries and services sector.

Corporate term loans to support capital expenditures for setting up new ventures as also for expansion, renovation,

etc.

Deferred payment guarantees to support purchase of capital equipments.

Project finance

Structured Finance

The bank also provides financial assistance to agriculturists through a network of rural and semi-urban branches. These specialized branches have been set up in different parts of the

country exclusively for the development of agriculture through credit deployment. Their schemes cover a wide range of agricultural activities like crop loan, finance to horticulture, farm mechanization schemes, land development schemes, minor irrigation projects, agricultural term loans, etc.

SBI offers SME EASY LOAN AGAINST PROPERTY

SBI offers BEST DEAL FOR DEALERS at 9.70%* p.a. interest(lowest Rate of Interest)

Now SBI offers POINT OF SALES (POS) LINKED OVERDRAFT facility

SBI Offers POWER POS Current Account to the customers.

SME Insta Deposit Card launched for Cash Credit/Current Account customers.

SBI presents SME EASY LOAN AGAINST PROPERTY. Now use the power of your property for business SBI presents SME Easy Loan Against Property: Now use the power of your property for business.For more details please go to loan products link or contact your nearest branch SBI offers BEST DEAL FOR DEALERS at 9.70%* p.a. interest(lowest Rate of Interest) SBI now offers dealer financing at 9.70% p.a. - Lowest rate of interest (SBI Base Rate at 9.70%), 100% funding and convenience of banking under Electronic Dealer Finance Scheme (e-DFS Now SBI offers POINT OF SALES (POS) LINKED OVERDRAFT facility POS customers can now avail hassle free overdraft facility on their POS linked current accounts SBI Offers POWER POS Current Account to the customers. Customers who avail our Point of Sales (POS) terminals are eligible to open Power POS Current Accounts. This Current Account is a zero balance account which offers various facilities SME Insta Deposit Card launched for Cash Credit/Current Account customers. Customers can now deposit cash in the

Insta Deposit Card and State Bank Business Debit Card at Cash deposit Machines installed at our branches

A WORD ABOUT SBI-CARD A word about SBI card SBI Segment : Small business credit card (SBI credit card) Preamble : Small business units, retail traders, artisans, village industries, small-scale industrial units and tiny units, professionals and self employed persons etc., contribute significantly to the growth of our economy. The entrepreneur himself manages many of the units. Very often, these entrepreneurs complain of procedural delay in sanctions and renewal of limits. They also find it difficult to cope with the demands for audited balance sheet and other statements sought by the bank from time to time for availing credit facilities. With a view to providing hassle free financial supports to the above categories of entrepreneurs who have shown commitment to run the unit successfully and who are dealing with the banks for last two years satisfactorily, new and friendly credit product namely small business credit card scheme is designed. Under the scheme, cumbersome procedural aspects relating to reviews and renewals, submission of balance sheet, stock statements and other statements are done with credit delivery made simple and easy.

Purpose :
To meet the credit requirements of small business units, industrial unit, retail trader, artisan, Small Scale Industry (SSI) and tiny units.

Eligibility : A. Customers of the following segments with a satisfactory track record for the last two years enjoying credit facilities.

Small industrial units (SSI and tiny units including artisans) Small retail traders (Under SBF) Small business enterprise

Professional and self employed persons

B. Units who do not enjoy credit limit with us/other banks at present with excellent performance and credential may be considered. Quantum of loan : Loan up to Rs. 5 Lakh can be sanctioned to eligible persons. Assessment : The small business credit card limit can be fixed as follows :

For small business, retail trader etc. 20% of the annual turnover declared for tax purpose or last twelve months turnover in the operative accounts, whichever is higher.

In respect of parties with good track record, where sales tax returns are not available, the credit limits may be decided taking into consideration the actual turnover in the accounts during the last two years.

For professionals and self employed persons, 50% of their gross annual income as per IT return shall be considered as the limit for issuing the SBI credit card.

For small scale industrial units, tiny sector units the assessment norms in vogue as per the Nayak Committee recommendations would continue.

Validity :

Credit card limit will be valid for a period of three years, subject to satisfactory conduct of the accounts.

Annual review will be done based on conduct/operations of the A/cs. A major portion of the sales turnover should have been routed through the accounts as revealed by the credit summations.

Repayment :

The working capital advance may be continued subject to that review every year provided the credit summations in the account is not less than 50% of the projected sales turnover. If the credit summations is less than 50% of projected sales turnover. The outstanding as on the due date of review should be made repayable in suitable monthly installments.

The term loan is repayable in suitable installments with in a maximum period of five years.

In case of composite loans, only the term loan is repayable in installments up to a maximum period of five years.

Interest rate : As per extent instructions issued from time to time relating the market segment. Refinance : No refinance is to be claim from SIDBI Security : Primary : Hypothecation of the stock in trade receivables, machinery, office equipment. Collateral : Under SSI-No collateral security as per existing guidelines of RBI. User SBF :

Up to Rs. 25000/- No collateral security. or third party granted.

Over Rs. 25000/- charge over movable/immovable property

However, in case of the excellent track record, sanctioning authority may waive collateral requirement.

Margins : Up to Rs. 25000/- - NIL Rs. 25001/- to Rs. 5,00,000/Documentation : Documents as per extant instructions. Credit Card - A Convenient Banking Product : The credit card is a hassle free convenient banking product aimed at simplifying the credit delivery mechanism. Cumbersome procedural aspects relating to reviews and renewals, submission of stock statement, balance sheet and other statements are done away with. The credit limit will be worked as detail above. Small business credit card

- 20%

Card No. Name

Account No. Tel. No.

Limit Rs.

Date of issue Valid upto

.. (Branch Code)

Signature of the Brach Manager Photograph with signature

Card holders

The borrower would be issued a photo card indicating sanctioned limit and validity of the limit (sample card) Insurance :

Fixed assets/stock pledged/hypothecated to the bank be fully insured at least to the extent of the bank interests. the fire and other risk up to Rs.25000/

Bank may waive insurance of assets for equipment against

Cover under credit guarantee scheme :

All eligible loan accounts sanctioned for small scale industries (other than services) would qualify for cover under CGTFSI scheme (presently the scheme has been introduce in five circles on pilot basis viz. New Delhi, Chandigarh, Lucknow, Patna & Hydrabad).

Operation :

Small business credit card accounts should be maintained in a separate ledger.

Cheque book should be issued and marked as small business credit card account. holders.

Pass book should be issued for mall business credit card

Stock statement waived.

Submission of audited balance sheet waived.

Borrower would be issued a small business credit card with photograph thereon. Cost of photograph to be borne by banks.

IRAC norms would be applicable.

Brief opinion report should be recorded. Marked inquiries should be made and recorded in the opinion report and singed by the field officer/cash officer or officers not below that rank.

Units within a radius of 5 kilometers may be covered intensively for the issue of credit card. This condition may be waived for such of those units already in the book of the branch.

Inspections :

Half-yearly inspection/monitoring to ensure the end user funds.

Sanction :

Required loan may be sanctioned with in a week after receipt of detailed information.

Control return after sanction may be sent to next higher authority for approval .

Scoring Model :

Loan would be sanctioned up to Rs. 5,00,000/- based on the simplified scoring model as given in annexure- II. Those who are scoring less than 60% would not qualify for the loan.

Rationale :

New schemes for hassle free credit facilities to small borrower.

Automatic Teller Machine (ATM)

An ATM (Automatic Teller Machine) card is useful to a card holder as it helps him to withdraw cash from banks even when they are closed. This can be done by inserting the card in the ATM installed at various banks locations. State Bank Cash Plus CARD

Signature Panel. Magnetic Stripe

Features of State Bank Cash Plus Card

State Bank Cash Plus Card having the 19 digit. Name of the card holders mention there on it.

In case of State Bank Cash Plus Card, there is no expiry period but for the old card, the date after which your card needs to be renewed is the last day of the month indicated on your card.

Signature panel on which you must sign as soon as you card. It identifies the card as your State Bank Card Plus Card. ATM card possess pincode which having the 4 digit.

The magnetic stripe, which contains encoded information.

Use of State Bank Cash Plus Card

We use our State Bank Cash Plus Card for cash withdrawal from ATMs.

We use it for making the payments for purchase made at the merchant establishments

BANK OF BARODA

HISTORY

1969 - The Bank was brought into existence by a Ordinance issue on 19th July, by the Central Government. The Bank is a Government of India Undertaking and carries on all types of banking business including foreign exchange. The Ordinance was replaced by the Banking Companies (Acquisition and Trasfer of Undertaking) Act, 1969. - Besides managing public issues and giving underwriting support, the Bank established a `Non-resident Portfolio Management Consultancy Cell'. Due to closure of 2 branches in U.K. and 1 branch in UAE, non-operative branch in Bangladesh was not taken into account. 1970 -Income-Tax consultancy services was set-up in September to assist its constituents in the filing of income returns. - Bank of Baroda (U.K.) Nominees Ltd., London is a subsidiary of the Bank. Bob Fiscal Services Ltd., is also a subsidiary of the Bank which handles functions such as merchant banking, equipment leasing, investment banking, inter-corporate deposit, etc. Bank of Baroda (Kenya) Ltd., Kenya is subsidiary of the Bank.

1986 - The bank sponsored and set-up five RRBs taking the total number of RRBs to 19. -Rs 16 crores capital subscribed for by Government. 1988 -The erstwhile `Trades Bank Ltd.' was amalgamated with the Bank. -Rs 14 crores capital subscribed for by Govt. Rs 5.5 crore reimbursement received from World Bank. 1989 -Rs 891,47,850 capital subscribed for by Govt. 1990 - Rs 2704,41,129 capital subscribed for by Govt.

1991 -Rs. 11,491.97 lakhs capital subscribed for by Govt. 1992 -Rs. 9158.43 lakhs capital subscribed for by Govt. 1993 -Rs. 409,34,000 capital subscribed for by Govt. -The bank received `in principle' approval from RBI to set up a separate subsidiary for its credit card business. - The bank had established a new department to act as custodian of local shares issued by Indian companies who came out with Euro Issues (GDRs/ADRs) to raise funds from abroad. With this in view, the bank entered into an agreement with Bank of New York, who act as Depository for issue of GDRs by companies. - The bank was associated as lead manager/co-manager in respect of 142 issues involving a sum of Rs 3411 crores. The bank was activity considering setting up of a separate subsidiary to undertake all types of merchant banking activities. 1994 -Rs. 1,63,30,000 capital subscribed for by Govt. 1995 -Rs 163,93,59,000 capital from reserve fund. 1996

- The Bank devised new products, two new deposit schemes `BOB SUVIDHA', `BOB CAPITAL GAINS EXEMPTION DEPOSIT' was launched to suit the savings requirements of individuals, HUF, Association of persuing, firms and companies. - The bank initiated several measures to bring qualitative improvement in the area of credit. A fast track systems for processing credit proposals of A+ & A rated corporate client was introduced. In addition, schemes to increase credit fluid sectors like leasing, hire purchase, advances against shares, Can Loan Schemes etc. were formulated and guidelines were issued for increased lending to infrastructure projects. - The Company lead managed 1 public and 5 rights issues aggregating Rs 40.541 lakhs through BOB Capital Markets Ltd. BOB Housing Finance Ltd. made a fresh disbursements of Rs 21 crores. Total cumulative loans sanctioned reached Rs 127 crores. - 3810,00,000 No. of Equity shares returned to Govt. of India. 1000,00,000 No. of Equity shares issued through prospectus to the public at a prem. of Rs 75 per share.

1997 - Bank of Baroda (BoB) has received permission from the Reserve Bank of India to open a branch at Durban in South Africa. BoB proposes to start operations in the country soon after it receives a banking licence from the South African Reserve Bank (SARB). - Bank of Baroda (BoB) proposes to undertake a survey of West Bengal, Sikkim and North-Eastern States to explore business opportunities and also for setting up new branches. - Bank of Baroda (BoB) proposes to wholly own the 120 million HK dollars IOB Bank in Hong Kong by increasing its stake from 33 per cent to 100 per cent to make its presence felt in the Far East. - Bank of Baroda (BoB) plans to have an alliance with a foreign bank for merchant banking. The proposed venture would manage external commercial borrowings (ECBs) by Indian corporates and handle disinvestment programmes of public sector undertakings. - Bobcards Ltd, a wholly owned subsidiary of Bank of Baroda, has achieved a 40 per cent growth in profit before tax in the first half year ended September, 1997. - Bank of Baroda's New York branch has received the highest 1 rating from the US Federal Reserve. This is for the first time that the US Fed has given the highest rating to any Indian bank branch operating in New York. 1998 - Bank of Baroda has become the first public sector bank to implement the autonomy package announced by the ministry of finance in November,

1997. - BoBGLOBAL, the first Indian credit card introduced for international use, with VISA tie-up, is already being accepted by over ten million establishments in over 60 countries. - The Bank of Baroda (BoB) plans to restructure its international operations, particularly in Europe and the United States (US) ahead of the launch of the euro, the European Union's single currency unit. -Bobcards Ltd, the wholly owned subsidiary of Bank of Baroda is looking for partners to enter into a joint venture. - Bank of Baroda is weighting the option of setting up a separate subsidiary dedicated exclusively to its highly profitable international business. -Bank of Baroda has the second largest resource base in the country after State Bank of India. - Bank of Baroda (BoB) has revised the rate of interest on foreign currency non-resident (banks) deposits for various maturities for different currencies effective October 26. - Bank of Baroda has revised the rate of interest on FNCR (b) deposits for various maturities for different currencies with effect from November 30.

1999 -Bank of Baroda (BoB) will co-ordinate with the finance ministry to set up a debt recovery tribunal (DRT) in Mumbai. - Bank of Baroda (BoB) has revised the rate of interest on its FCNR (B) deposits for various maturities and different currencies with effect from February 1. - Rating agency Icra has assigned the highest rating, LAAA (LAAA), to Rs.600 crore long-term unsecured subordinated bonds of Bank of Baroda (BoB). The public sector bank is coming out with the bond issue to increase its tier II capital. - Public sector Bank of Baroda has been designated as a clearing bank for castor oil trading in the future, which will be launched by the Bombay Oilseeds and Oils Exchange (BOOE) on May 10. - Bank of Baroda has bought out the 49 per cent shareholding of Government of Uganda in Bank of Baroda (Uganda) Ltd, thus making it a fully-owned subsidiary of Bank of Baroda. - Bank of Baroda (BOB) is keen to diversify into the insurance sector, where the focus of its activities will be the rural population. BOB has proposed to enter health and general insurance where it plans to mainly target the rural areas. - Bank of Baroda (BoB) has made a proposal to the Union ministry of finance (MoF) to tap foreign markets for enhancing the bank's equity base. - International rating agency Standard & Poor's (S&P) has revised its rating outlook on Bank of Baroda (BoB) to stable from negative.

2000 - The BoB as launched services such as OmniBoB and BoBCash to help the customer practice anywhere-banking at 18 branches with the `Smart Card'. -Bank of Baroda launched its e-banking products in Chennai. - Bank of Baroda has joined hands with financial institutions such as IDBI and ICICI for a speedy recovery of dues from common problem accounts. - Bank of Baroda has set up a core support group consisting 500 knowledge workers from across its branches to help catalyse change management. -Bank of Baroda has opened its 104th branch in Kalyan and will also offer safe deposit lockers and a housing cell. -Bank of Baroda has decided that it will hold more than 50 per cent in the life insurance subsidiary it proposes to set-up. -Bank of Baroda will launch seven day banking in two branches of Chennai and Mylapore and K K Nagar, on 17th August.

- The Bank is exploring strategic tie-ups with local and foreign partners in the area of insurance, retail lending and Web banking. -Bank of Baroda and Punjab National Bank will tie up to form a subsidiary for a foray into life insurance business. - Bank of Baroda is in an advance stage of talks with a foreign insurance company for a life insurance joint venture and is expected to finalise the tie-up within a fortnight. -The Bank will introduce 7-day banking at 10 branches in Mumbai from October 8th. - Bank of Boarda will introduce `any branch banking' facility to make customer transactions at the nearest branch countrywide in the next 18 months. -The Bank of Baroda has signed up to be a depository participant with Central Depository Services (India) Ltd. 2001 -Bank of Baroda proposes to go in for a major drive to expand its ATM network across the country. - Bank of Baroda is tying up with a US-based IT company to set up the basic IT infrastructure of the bank at a cost of Rs 300 crore.

-Crisil has assigned an `AAA' rating to the Rs 600-crore sub-ordinated bond issue of Bank of Baroda. - BANK of Baroda Housing Finance, a subsidiary of the Bank of Baroda, has disbursed a sum of Rs 50.0 crore to 2578 beneficiaries in rural and semi-urban areas under the golden rural housing schemes of the National Housing Bank.

- BoB has signed a redeployment policy with its Federation Union, affiliated to the National Confederation of Bank Employees (NCBE) regarding the transfer of clerical staff. - Bank (BoB) has lowered interest rates by 25-40 basis points, for FCNR (B) deposits in force from September 5, for different currencies, effective from September 17. -Bank of Barodas (BoB) net profit during the secondre,downfromquarterRs has 126.64 crore in the corresponding period last fiscal. 2002 - GOI nominates N S Mhatre as Director on the Board of Bank of Baroda. -GOI nominates Anand Sinha on the Board of Bank of Baroda. -Govt sanctions merger of Benares State Bank with Bank of Baroda. -Bank of Baroda has informed BSE that the Benares State Bank Ltd now stands amalgamated with the bank wef June 20,

2002 and branches of erstwhile Benares State Bank Ltd have started functioning as Bank of Baroda's branches with effect from July 19, 2002. -Bank of Baroda has informed BSE that the Bank of Baroda (Uganda) Ltd., - Subsidiary of the Bank in Uganda has proposed to make Public Offer of 8 million equity shares of face value of Ushs.100/- each at an offer price of Ushs.600/- per share. The offer also involves concessional offer of 200 equity shares per staff member at a price of Ushs.350/-. The offer shall open on August 26, 2002. The said offer has been approved by RBI. -Bank of Baroda has informed BSE that the Government of India, Ministry of Finance, Department of Economic Affairs, Banking Division, New Delhi has nominated Mr Vinod Rai, Joint Secretary, Ministry of Finance & Company Affairs, Deptt of Economic Affairs (Banking Division), New Delhi as Director on the Board of the Bank with effect from October 25, 2002. -Bank of Baroda elects 4 Directorsthe Director so elected will assume office w.e.f. today (November 16, 2002) and will hold office till November 15, 2005. 1. Shri Amritlal Sanghvi 2. Dr M J Manohar Rao 3. Shri Pradip N Khandwalla 4. Shri Prem P Pareek -RBI grants BoB Capital Markets Ltd. to operate as a primary dealer in Govt. securities market -Comes out with two special policies for the victims of the communal riots in Gujarat -Decreases its deposit rates by 25 basis points -IFCI gets Rs 100 cr credit from Bank of Baroda -BOBCARDS Ltd, a wholly-owned subsidiary of Bank of Baroda, in

collaboration with Mastercard International, unveils PARAS credit cards -Tops Non Performing Assets (NPA) list -Shifts Central Office from Ballard Peir to Bandra -Unveils flexi-deposit scheme for corporates -Contributes Rs 1 lakh for repair of Akshardham temple for repairs of damages caused by terrorist attacks -Slashes down deposit rates by 25 basis points -Reduces its deposit rates by 50 basis points at the longer end deposits -Brings down floating rate on home loans by 0.75% -Launches international debit card in alliance with Visa International -BOB CARDS, a subsidiary of Bank of Baroda, and Cholamandalam Investment and Finance Company declare a tie-up to issue co-branded credit cards to Cholamandalam's vehicle finance customers

2003 -Decreases interest on domestic term deposits by 25-75 basis points across different maturities effective January 10,2003 -Gets govt. approval to raise Rs 600 crore through bonds -Unveils Super Savings Account, savings account with value added propositions -Appoints IBM, H-P, Accenture for Business Process Reengineering (BPR) -Paves the way for single-window banking across its 2,200 branches in the country -Cuts lending rates by 25 bp -Extends super savings scheme to Coimbatore account holders -Ties up with Bharat Overseas Bank Ltd. (BOBL) to expand credit cards business in South India -Amends interest rates for FCNR(B) deposits -Picks up 10 pc stake in IFCI's Asset Care Enterprise (ACE) -Sign MOU with Small Industries Development Bank of India (SIDBI) to cofinance the small scale industries sector 2004 -Mobilizes Rs 300 Cr through Tier II bonds -Ministry of Finance, Department of Economic Affairs, Banking Division, New Delhi vide their Notification dated January 09, 2004 has nominated Shri G K Sharma, Chief General Manager in-charge Reserve Bank of India,

Dept. of Administration & Personnel Management, Central Office, Mumbai as Director on the Board of the bank w.e.f. January 09, 2004 in place of Shri Ramesh Chander, Regional Director, RBI, New Delhi. -S P Garg is new managing director of Bobcards Ltd, a wholly-owned subsidiary of Bank of Baroda. -Bank of Baroda has informed that the Government of India, Ministry of Finance, Department of Economic Affairs (Banking Division), New Delhi vide their notification dated February 4, 2004 has appointed Dr. A K Khandelwal, Executive Director (ED) of Bank of Baroda as Chairman & Managing Director (CMD) of Dena Bank. -The government has chosen Bank of Baroda for channelising government credit to other countries which runs into billions of dollar -Ties up with Punjab Tractors for offering finance to farmers for buying tractors from Punjab Tractors

-Bank of Baroda signed a memorandum of understanding with L&T John Deere Pvt Ltd to prop up farm sector lending. -Bank of Baroda inks pact with Escorts Ltd, Indo Farm Tractors & Motors Ltd to boost farm lending -BOB join hands with NIC for non-life insurance products -Bank of Baroda enters China -Ties up with Chennai-based Tractor & Farm Equipments Ltd (TAFE) for financing their tractors -Mr T.V. Lakshminarayanan has taken over as the Head of the South Zone, Bank of Baroda -Bank of Baroda (BoB) has tied up with Mahindra and Mahindra Ltd (M&M) for tractor financing 2005 - BoB has appointed Dr A K Khandelwal, as the Chairman & Managing Director (CMD) of the Bank for a period of three years with effect from March 01, 2005 upto March 31, 2008 - Bank of Baroda signs contract with HP India Sales Pvt Ltd for implementation of Bank's IT enabled Business Transformation Process -BoB unveils new logo, ropes in Dravid as brand ambassador -Bank of Baroda inks co-financing agreement with SIDBI -Bank of Baroda has amalgamated its three sponsored regional rural banks (RRBs) into single RRB, called Baroda Gujarat Gramin Bank -BOB signs Memorandum of Cooperation with EXIM Bank

-BoB unveils campaign on tractor, irrigation advances. 2006 -Bank of Baroda (BOB) has informed that the Bank and Infrastructure Development Finance Company Ltd (IDFC) have on February 16, 2006, entered into a Memorandum of Understanding (MOU) to enhance the provision of financing and other banking products and services to entities involved in infrastructure development. -The Bank of Baroda unveiled its first SME loan factory in Pune on Oct 13. - Bank of Baroda (BOB) has informed that pursuant to powers conferred by clause (b) of sub-section (3) of section 9 of Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, read with sub clause (1) of clause 3 of the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970, the Government of India, Ministry of Finance, Department of Economic Affairs (Banking Division) vide their Notification Dated October 31, 2006 have nominated Shri G C

Chaturvedi, Joint Secretary (B&I) MOF, GOI as Director of the Bank vice Shri Vinod Rai with immediate effect. 2007 -Bank of Baroda and India Infrastructure Finance Company Ltd (IIFC) on January 10, 2007, have entered into an Memorandum of Understanding (MOU) to enhance the provision of financing and other banking products and services to entities involved in infrastructure development. -Bank of Baroda , Andhra Bank and M/s. Legal & General Group plc, UK have signed an MoU on November 16, 2007 to form a Joint Venture (JV) for Life Insurance Business. -Bank of Baroda has appointed Shri. Atul Agarwal as a part time non official Director on the Board of Directors of the Bank for a period of three years with effect from November 23, 2007 or until further orders, whichever is earlier. 2008 -Bank of Baroda has appointed Smt. Shahid as Director on the Board of the Bank under section 9(3)(h) of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 vide Government Notification dated September 15, 2005 for a period of 3 years. 2009 -Bank of Baroda has announced the deposit rate cuts by 50 basis points across all maturities. - Bank of Baroda has appointed Dr. Masarrat Shahid as part time, non official director on the Board of Bank of Baroda, for a second term of three

years w.e.f. October 29, 2009 or until further orders, whichever is earlier. 2010 -Bank of Baroda has appointed Shri N. S. Srinath as an Executive Director of the bank. -Bank of Baroda (BoB) has launched a Mobile Micro Loan Factory (MMLF) in Sultanpur district of Uttar Pradesh. - Bank of Baroda (BoB) has signed a Memorandum of Understanding (MoU) with the Unique Identification Authority of India (UIDAI).The memorandum which has been signed between the two organizations would make the bank to act as a registrar for the enrolment of UID for its existing and future customers. - A memorandum of cooperation (MoC) has been signed by Bank of Baroda (BoB) with the Dubai Multi Commodities Centre Authority (DMCC) in order to provide value added services to DMCC-registered companies as well as to enhance the proposition of operating in Jumairah Lake Towers (JLT) Free Zone. - Bank of Baroda has informed BSE that in exercise of the powers conferred by of sub-section 3 (h) and (3-A) of Section 9 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 read with sub clause (1) of clause 3 of The Nationalised Banks (Management & Miscellaneous Provisions) Scheme 1970, the Central Government vide its notification dated August 31, 2010, has nominated Shri. Satya Dev Tripathi as part-time non-official Director of the Bank, for a period of

three years w.e.f. August 31, 2010 or until further orders, whichever is earlier. 2011 -BoB hikes FD interest rates of diff maturities -Bank of Baroda hikes Benchmark Prime Lending Rate (BPLR) & Base Rate 2012 -Bank of Baroda hikes interest rates on domestic term deposits by up to 2.5% -Bank of Baroda announced the reduction in home loan rates by 25 basis points across all the categories for both new and existing customers.

Small Scale Industries

A Small Scale Industrial Unit, is one which is engaged in the manufacture, processing or preservation of goods or is a servicing and repair workshop undertaking repairs of machinery used for production, mining or quarrying or custom service unit (except water service units), having investments in plant and machinery (original cost) not exceeding Rs. 1 Crore. Bank of Baroda has special Loans and Advances for the purpose of fixed capital investment and also for working capital requirement.
Key Benefits

The loans and advances offered by Bank of Baroda for SSI Units can be used for the basic needs of: Acquisition of factory, land and construction of building spaces. Purchase of plant and machinery including lab equipment, testing equipment, etc. Meeting working capital requirements, like raw materials, stock-in-progress,

finished goods and for purchase or discounting of bills. Temporary additional assistance for meeting the urgent needs of raw material. Additional monitory assistance for any eligible purpose. Since most of the branches in the extensive network of over 2700 Bank of Baroda branches and 25 specialised SSI branches, are computerised, the user gets a benefit of anytime, anywhere banking, along with the advantage of several consumer driven products. The loan amount can extend up to a maximum of Rs. 25 Lakhs. There are also facilities of Credit Guarantee Fund trust scheme for the borrowers:

o Rate of interest for this will not be more than 3% over the Bank's current rate. o No guarantor or collateral security is required. o These credit facilities are available as a term loan and / or fund based working capital facilities (cash credit, overdraft, bills purchased or Discounted etc.) o A service charge (guarantee fee) at 2.5% of the credit facility sanctioned is payable upfront. o Annual service fee at 1% P.a. on the outstanding loan amount is payable by the borrower. o Loans to the software industry up to Rs. 1 Crore are eligible to be treated as SSI finances. Working capital requirements up to Rs. 5 Crores are governed by simple procedures. o Working Capital Limits are fixed based on the projected annual sales turnover. (However, Projected Turnover should be realistic and in line with past trends). o Simplified application and sanction procedure. o Rate of interest on credit facilities to SSI borrowers will be fixed on soft terms through liberal Credit Rating mechanism.
Terms & Conditions

Only the following are eligible as SSI units o The units that have obtained permanent registration based on the Govt. order dated 10.12.1997 would continue to remain as SSI unit in spite of the order dated 24.12.1999 reducing the investment limit to Rs.1 Crore. o The units that had switched over the SSI status based on the order-dated 10.12.1997 would continue to remain as SSI units in spite of the order. o The units which have got provisional registration with the state authorities for their SSI status would continue to remain as SSI units in spite of the order dated 24.12.1999 provided the provisional registration had taken place within the period of limitation of 180 days specified in the order dated 10.12.1997. o The units that have obtained provisional registration on the basis of the Notification dated 10th December, 1997, and have taken concrete steps for implementing the project such as preparation of project report, sanction of loan, purchase of land, civil construction, placement of orders for plant and machinery, etc., prior to 24th December, 1999 would continue to enjoy the SSI status so long as the investment in plant and machinery does not

exceed Rs. 3 Crores notwithstanding the revised investment limit of Rs.1 Crore notified on 24th December, 1999 Financial Assistance is available for Technologists and Technicians to set up SSI Units. The eligibility for this is: o The product is applicable to technically qualified and / or experienced persons and also craftsmen. o The product is extended to proprietary concerns, partnership firms, cooperative societies or private limited companies consisting of technologists / technicians and other with experience in sales, business, finance etc. This is provided that they satisfy the Bank that they are not in a position to raise necessary resources, but can contribute their skills in making the project a success. The main eligibility criteria for this product is that the unit should be a small scale industrial unit, which might include artisans, village and cottage industrial units, tiny units in the SSI sector or small scale service establishments engaged in industrial activities only. The maximum amount of loan can be till Rs. 25 Lakhs. No collateral security/ third party guarantee needs to be furnished.

The charge on assets is created out of the loan amount and the other collateral securities as determined on the merits of this case.

Loans & Advances

In addition to Working Capital Finance and Term Finance, Bank of Baroda has laid out a comprehensive suit of products specifically catering to SSI (small-scale industries) and Small Business Borrowers.
Loan and advances offered by Bank of Baroda are -

Working Capital Finance

Term Finance

Micro, Small & Medium Enterprises Sector

Baroda SME Loan Pack

Small Business Borrowers

Working Capital Finance

A firm's working capital is the money it has available to meet current obligations (those due in less than a year) and to acquire earning assets. Bank of Baroda offers corporations Working Capital Finance to meet their operating expenses, purchasing inventory, receivables financing, either by direct funding or by issuing letter of credit. Key Benefits Funded facilities, i.e. the bank provides funding and assistance to actually purchase business assets or to meet business expenses.

Non-Funded facilities, i.e. the bank can issue letters of credit or can give a guarantee on behalf of the customer to the suppliers, Government Departments

for the procurement of goods and services on credit. Available in both Indian as well as Foreign currency.

UNION BANK OF INDIA

Union Bank of India (UBI) was registered on 11 November 1919 as a limited company in Mumbai and was inaugurated by Mahatma Gandhi. At the time of India's Independence in 1947, UBI only had four branches - three in Mumbai and one in Saurashtra, all concentrated in key trade centres. After Independence UBI accelerated its growth and by the time the government nationalized it in 1969, it had grown to 240 branches in 28 states. Shortly after nationalization, UBI merged in Belgaum Bank, a private sector bank established in 1930 that had itself merged in a bank in 1964, the Shri Jadeya Shankarling Bank. Then in 1985 UBI merged in Miraj State Bank, which had been established in 1929. In 1999 the Reserve Bank of India requested that UBI acquire Sikkim Bank in a rescue after extensive irregularities had been discovered at the non-scheduled bank. Sikkim Bank had eight branches located in the North-east, which was attractive to UBI. UBI began its international expansion in 2007 with the opening of representative offices in Abu Dhabi, United Arab Emirates, and Shanghai, Peoples Republic of China. The next year, UBI established a branch in Hong Kong, its first branch outside India. In 2009, UBI opened a representative office in Sydney, Australia. Business

Personal banking: It provides products and services in area of saving, deposit, retail loans, cards, insurance, investment and demat facility. NRI Banking: Under this it offer a range of services and products in areas like remittance, saving, deposit, loans and payment to its NRI customers. Corporate Banking: It offers services like CMS, E-Tax, trade finance, insurance products and loans to its corporate clients.

Awards

The bank was awarded the prestigious ??Asian Banker IT implementation award 2007?? by the Asian Banker, a Singapore based research and intelligence organization at Asian Banker Summit Union Bank of India is member of World Economic Forum community In survey conducted by Business Today-KPMG, Union Bank of India was ranked 8th in the list

Overseas Offices of the Bank

Hongkong Sydney Abu Dhabi Beijing Shanghai London

Charter for Small Scale Industries

Acknowledgements for receipt of loan application by branch by affixing date stamp Time Norms for disposal of loan applications:

2 weeks Upto Rs. 25000/Over Rs. 25000 & upto Rs. 5.00 lacs Over Rs. 5.00 lac
Collateral security-

4 weeks 8-9 weeks

Loans - No collateral Security upto Rs. 5.00 lac Loans - No collateral Security based on good track record and over Rs. financial position of units 5.00 lac and upto Rs. 25 lac

Credit Guarantee-

Loans upto Rs.25 lac

- No collateral security and third party guarantee loans availed under Credit Guarantee Scheme (CGFSI). For obtaining guarantee cover, guarantee fee is payable @ 2.5% upfront and annual service charges are payable @ 1% on the outstanding loan amount. Our Bank is bearing 50% of the fees to reduce the burden to the beneficiaries.

Women Entrepreneurs -

Loans - Relaxation in margin money from 25% to 20% and 1% above reduction in rate of interest subject to a minimum of Rs. 1 lac PTLR/PLR on case to case basis

Composite loans upto Rs. 50 lakh are sanctioned to SSI units

Loan quantum: Minimum 20% of projected annual sales turnover (Nayak Committee norms) Rate of Interest : For SSI advances effective from 1.1.2004

- Loans upto Rs. 50,000/- PLR - 2%, i.e. 8.75% - Loans above Rs. 50,000/- - PLR -1.75%, i.e. 9.00% upto Rs. 2 lac - Loans above Rs. 2 lac - PLR, i.e. 10.75% upto Rs. 5 lac - Above Rs. 5 lakh - PLR+2% depending on credit rating.

Simple loan application form as per Kapoor Committee recommendations introduced Union Laghu Udhyami Credit Card (ULUCC): ULUCC introduced for providing bassle free credit upto Rs. 10.00 lakh to small borrowers Union Artisan Credit Card (UACC): UACC introduced for providing adequate and timely assistance upto Rs. 2 lakh to the artisans to meet their credit requirements

Research Problem

To study the state of recovery management.

2. Research Objective

For the purpose of this research the researcher has come out with the following objective. (1) To know what small scale industries is all about
(2) To know specific function perform by the

government in developing

small scale industries.

(3) To know some of the financial institutions involved in the development of small scale industries in Nigeria. (4) To know some of the assistance provided by commercial bank in the area of small scale industries.

(5) To know some of the government policy for promoting small and medium scale enterprises.

(6)

To know some of the government roles in encouraging small industries

(7) To know the affect of government policies on the small scale industries (8) To know the problems of scale and medium scale industries.

3. Research Methodologies

(1) Sample Design

The target population consists of State bank of India. The sample size comprise of Twenty one Executives of State bank of India. (2) Collection of Data A structured questionnaire the was prepared to elicit data

information

form

respondents.

Secondary

collection was done through data available from Books, Bank Register and Bank system.

(3) Sampling Method The research was done using Simple Random Sampling.

(4) Data Analysis The analysis of primary data is done with the help of computerized statistical tools. (5) Sample Size 100

Information of Collecting the Data

Detail of Borrower Reason of Due amount Commitment of Borrowers Utilisation of Fund Awareness of Loan Detail of Loan

We personally contaced each and every industry and collected the whole data which is mentioned over here for more information we attach Questionnaire here.

Collection of data is the essential part of the research. As possible as we collect the more data, view of customer, their opinion their problem and analysis those things and try give them better satisfaction bank as well as customer.

Data collect and bifurcate in different category as per their need.

Q1. Which bank are you using? BANK SBI BOB UBI %age 45 36 19

UBI 19%
SBI 45%

BOB 36%

ANALYSIS Majority are using SBI for financing the SSI .

Q2. How do you grade the functioning of the banks? BANK BOB UBI SBI GRADE Good Fair Excellent
%age

%age 34 15 51

51 % feel that working of SBI is better than other banks.

Q3. Are you willing to take loan from the bank you are using Yes 63 % No 27% Cannot say 10% 63 % are ready to take loan from the bank they are using, this shows that they are satisfied with their banks

Q4. Are you using CASH facility? BANK SBI UBI BOB %age 43 15 42

CASH facility of SBI and BOB are similar and nearly equivalent number of people are using it.

Q5.Are you willing to use the CREDIT facility? BANK SBI UBI BOB % 38 17 45

Lesser people are interested in using the CREDIT facility as compared to the CASH facility. Instead 2% more people are using the CREDIT facility for UBI .

Q6. Is loan facility available easily? Yes No 44% 56%

60% 50% 40% 30% 20% 10% 0%

Series1

Yes

No

This graph shows that availability of loan is just words even for the SSIs.

Q7. Amount of loan taken? Loan Amount Above 25 Lacs Between 25-1 Cr. Above 1 Cr. %age 35 39 16

%age
40 35 30 25 %age 20 15 10 5 0 Above 25 Lacs Between 25-1 Cr. Above 1 Cr.

Majority take a loan amount between 25-1 cr.

Q8. In future would you continue with your bank or you would change the bank?

Yes No Cannot Say

24% 60% 16%

Yes No Cannot Say

Q9. Which bank would you prefer? SBI BOB UBI 34% 44% 22%

SBI BOB UBI

Majority of the persons want to bank with BOB and SBI.

Q 10. Majority of the Industries are of which kind? Agri Weaving Dairy Pharmaceutical 41% 30% 22% 07%

Agri Weaving Dairy Pharmaceutical

Majority of the industries are Agri. based industries.

LIMITATION OF THE STUDY

The Research has already said that the scope of the research work is limited to commercial banks and the reasons for this had been given. The limitation that is tucked about here will be taken to mean the problem already and will still be encountered by the researcher. It is always said and believe that, nothing good comes easy and wi

The Research is at present undergoing and still anticipates more of economic problems. The research of this nature should normally required a lot of money, which an average student just cannot afford especially with the present economic situation in Nigeria.

However, with the little financial support from my parent and aids from friends and well-wishers, even relatives, I hope to overcome, this constraint.

On the other hard, time factor is another problem confronting the researcher in this study. A regular full time under-graduate student especially of Institution of Management and Technology who carries the normal semester load does not have the full necessary time required for a research work of this kind. He attends lectures from Monday to Friday. However, with deviation and commitment and by the special grace of God, I hope to and will succeed.

RECOMMENDATION

The recommendation are the following.

Some are unsatisfied with their bank performance therefore banks should pay attention to the small scale industries.

Banks should provide better performance. Banks should provide credit facility because customer demands this type of facility.

Some schemes should be provided by the banks. Banks should give special attention for the SSI.

SIGNIFICANCE OF THE STUDY

This research work will be of great importance to so many beneficiaries, specifically to both private and public owners of business. Individuals who are into small scale business will equally benefit and also those who enter into the business of small scale industries will equally benefit from this research work.

However, financial institution will equally benefit are returns from the small scale industries will deposited in their custody. When profits are generated effective utilization of this research work.

Conclusion:
For entrepreneurs, small business financial management is a vital aspect of growing a profitable company. Implementing sound economic principles and keeping a close watch on cash flow will help lay a solid financial foundation for the new venture. Monetary policies and procedures for effective cash management need to be part of the entrepreneur's business plan. Though it may be more exciting for the entrepreneur to dream about the actual services or products that the company will provide, a business cannot thrive, and may not survive, if the financing aspects are left to chance. In order to arrest sickness at the incipient stage banks & financial institutions should periodically review the accounts of the small scale industr8ies borrowers to identify units which are becoming sick or are prone to sickness. The Government of India & the RBI should be requested to direct commercial banks & financial institutions to provide information on sickness to the agencies like BIFR implementing the rehabilitation programme to facilitate them to take up appropriate action. It is also suggested that Government sh training the entrepreneurs in financial aspects.

References: 1)I. M. Pandey: Financial Management, ( sixth revised edition ), vikas publishing House Ltd. , New Dehli, 1994, p.755 2)Vasant Desai; Small scale Industries & entrepreneurship, first edition, Himalaya

publishing House Ltd., New Dehli, 3) John Argenti: Symptoms of Financing SSI.

Oct,

1994

p.94,95,179-181.