Sometimes our light goes out But is blown into flame by another human being. Each of us owes deepest thanks To those who have rekindled this light
"Sometimes our light goes out
But is blown into flame by another human being.
Each of us owes deepest thanks
To those who have rekindled this light"
No work is a single man’s effort. Cooperation, guidance and coordination are required at
various levels for the successful completion of a project.
I take this opportunity to express my gratitude to all those people who have been instrumental
in successful completion of my project. I am particularly indebted to Mr.shashi mohan
sharma (branch manager, bank of rajasthan ltd.) for them helpful guidance, comments and
suggestions on earlier reports and throughout my project.
I am also grateful to the respondents who filled my questionnaires and helped me in gaining an
insight of “bank of rajasthan limited as a brand in the Indian market. Their enthusiastic
feedback has given my project a direction. All errors, if any, in the project are my sole
I would also like to express my gratitude towards my parents and friends, who have always
been my source of inspiration and motivation.
The antiquated Indian banking system has its roots in the nineteenth century. The character and
structure of the system has, however, changed substantially since 1969, when the major banks
were nationalized. Prior to nationalization, banking was concentrated in urban areas. It was
clear that a better banking system was needed to promote the economic goals of the new Indian
state. Rural markets for industrial goods could not be developed so long as money lenders,
charging usurious rates of interest, were the main source of rural credit. Moreover, the 'green
revolution' depended on farmers finding substantial sources of credit to pay for fertilizers and
Since the mid-1970s, there has been a spectacular growth in the spatial distribution of bank
branches and in the size of their deposits and advances. According to experts in banking this
transformation has no parallel anywhere in the world. After nationalization, there was also a
change in recruitment policy. For the first time, the doors of the banks were opened to
everyone, irrespective of family status, caste, community, religion or gender. Recruitment was
placed on a more systematic basis, with merit assessed by aptitude tests conducted by an
external agency in a relatively impartial manner.
As the size of the banking sector increased, the industry became difficult to manage. Computer
technology offered a possible solution. In India, a small number of industrial houses and a few
educational, research and development institutions started using computers in the early 1960s.
During the late 1960s and 1970s, service-oriented industries such as airlines, railways and
insurance companies introduced computers to 'improve their functioning' and 'to provide better
customer service’. Banks in India did not, however, introduce computers on a large scale
because of the fear that these would result in retrenchment and unemployment.
For a long time Indian banks faced very little competition and operated in a protected
economy. Thus no long-term policy or perspective for the banking sector was formulated: it
was simply treated as part of the public sector. This is now changing. Well-computerized
foreign banks are beginning to compete seriously with the nationalized banks. They aim at a
profitable and wealthy part of the market and, in contrast to the nationalized banks, do not
recognize any social responsibilities to small account holders or to a rural and semi-urban
The banking and financial services Industry in India is in a state of inevitable and rapid
transition. The market for banking products and services has become more competitive than
ever before. With the steady fall in interest rates over the last two years, customers are looking
for alternate avenues for savings and investments such as pension funds, mutual funds, life
insurance products etc. Furthermore, interest margins and hence revenue opportunities have
become very thin driving banks and financial services companies to look for lending
opportunities where intrinsically the delinquency rates on loans are low and where the risk can
be spread across a large base of customers. Simultaneously, a rapidly growing middle class,
with an enormous appetite to borrow from Banks for a better lifestyle, has given banks and
financial services companies an opportunity like never before to finance the demand side of the
The multinational banks and some of the new private sector banks in the country have seized
the opportunity very well. The public sector banks and the old private sector banks, who
command over 80% market share in the banking industry, must seize the opportunity in a big
way and respond aggressively to market demands if the growth in Retail Banking has to be
accelerated in the country.
To be successful in Retail Banking, banks will need to revamp their business model to (a) build
a large volume, highly scalable operation, (b) package and deliver products rapidly in a
dynamic market, (c) leverage effectively on multiple delivery channels (branch, internet,
ATMs etc.) with a view to contain the cost of operations (d) build collaborative relationships
with providers of related financial products and services and move towards converting the
network of bank branches into ‘financial supermarkets’.
Banking sector in India is devided in
Central Bank Reserve Bank of India
Nationalized State Bank of India · Allahabad Bank · Andhra Bank · Bank
Banks of Baroda · Bank of India · Bank of Maharashtra · Canara
Bank · Central Bank of India · Corporation Bank · Dena
Bank · Indian Bank · Indian Overseas Bank · Oriental Bank
of Commerce · Punjab & Sind Bank · Punjab National
Bank · Syndicate Bank · Union Bank of India · United Bank
of India · UCO Bank · Vijaya Bank · IDBI Bank
Private Banks Axis Bank · Bank of Rajasthan · Bharat Overseas Bank ·
Catholic Syrian Bank · Centurion Bank of Punjab · City
Union Bank · Development Credit Bank · Dhanalakshmi
Bank · Federal Bank · Ganesh Bank of Kurundwad · HDFC
Bank · ICICI Bank · IndusInd Bank · ING Vysya Bank ·
Jammu & Kashmir Bank · Karnataka Bank Limited · Karur
Vysya Bank · Kotak Mahindra Bank · Lakshmi Vilas Bank ·
Nainital Bank · Ratnakar Bank · SBI Commercial and
International Bank · South Indian Bank · Tamilnad
Mercantile Bank Ltd. · YES Bank
Multinational ABN AMRO Bank, Abu Dhabi Commercial Bank, ANZ
Banks in India Grindlay Bank, Bank of America, Bank National Paris,
CITI Bank China Trust Commercial Bank, Hong Kong &
Shanghai Banking Corporation, Standard Chartered Bank,
Regional Rural South Malabar Gramin Bank
Services NEFT · CashTree · Cashnet
The Bank of Rajasthan Ltd., a leading Private Sector Bank, having branches all over India
with prominent presence in Rajasthan having specialised forex and Industrial finance
The Bank is committed to the highest level of customer satisfaction through personalised and
The logo consists of the historic Victory Tower of Chittorgarh,( Rajasthan) the rising sun and
sand-dunes in a circular shape of coin.
The Victory Tower, a symbol of warrior land of Rajasthan where the Bank was founded. The
Tower denotes the supremacy, the splendor and being outstanding .
The rising Sun symbolises hopes, unlimited scope for progress and growth. The Sand
Dunes represent the state of Rajasthan where the Bank came in to being.The Coin denotes
economic activity, particularly banking.
Origin & Growth
The Bank Of Rajasthan Ltd. was established at Udaipur, the city of lakes in Rajasthan on the
auspicious day of Akshya Tritiya on May 8, 1943. The credit for the birth of the Bank goes to,
the then finance minister of the erst-while Mewar Government, late Shri Rai Bahadur P.C.
Chatterji, who persuaded
the Mansingka brothers of Bhilwara for establishing a joint stock bank with its registered
Office at Udaipur.
The Bank was established with an initial capital of Rs.10.00 lacs. Late Seth Shri Govind Ram
Seksaria, an eminent Industrialist of the country, was the founder Chairman. The first Broad of
Directors comprised such men of eminence as Shri Rai Bahadur Seth Rameshwarlal Ji
Duduwala, Seth Shri Subhhag Mal Ji Lodha besides the Mansighka brothers, Seth Shri Pusa
Lalji Mansighka and Seth Shri Damodar Lal ji Mansighka. The other members of the board
were Major Rajadhiraj Amar Singhji of Banera and the then Accountant General of Mewar,
Rai Bahadur lala Sukhdayalji.
In line with the contemporary practice of naming the bank after the location or princely state,
the suggested names for the bank were Bank of Mewar State or Bank of Udaipur. The
promoters, being very clear in their vision, expressed the view that the word 'Rajasthan' will be
more advantageous in future for expanding activities in other princely states since under the
new constitution grouping of the then local princely states was expected under one umbrella.
As now is history, the individual princely states were merged under the final name for the state
- Rajasthan. The naming of the bank, The Bank of Rajasthan Ltd., glaringly reflected the
foresight of the promoters
• In the year 1948, the Bank was included in the second schedule by the Reserve Bank
• In 1955, the Bank was given license under Section 22 of Banking Regulation Act,1949
by the Reserve Bank Of India (RBI).
• The Bank was among the first banks to take banking at the door step of customers by
introducing the concept of mobile branches, when it opened its first mobile branch in
Jaipur on 5th August, 1960.
• The Bank received license to deal in foreign exchange in 1973 from the RBI.
• The Bank was among the first banks in the private sector to have been assigned Lead
Bank responsibility which it shared with an associate of State Bank of Bikaner &
Jaipur in Udaipur District.
• The Bank became one of the earliest banks in private sector sponsoring any rural
(Gramin) bank, when it established the Mewar Anchlik Gramin Bank in Udaipur
District in Rajasthan on 26th January, 1983.
• In 1993, the Bank received authority to deal as class-I merchant Banker.
• The currency chest of the Bank was also started in the year 1993 .
• Bank's 1st, 100th, 200th and 300th branches were opened in the year 1943, 1973, 1980
and 1997 at Bhilwara, Barmer, Jodhpur(Sardarpura) and Cochin respectively.
• The bank achieved a unique distinction when its C-scheme, Jaipur branch qualified for
ISO-9002:94 certification (quality system certified) by DET NORSKE VERITAS
(DNV) LONDON U.K in 1997.
The Bank started its first ATM services in the series of Quality services to its customers at C-
Scheme Jaipur branch from 1st July 1998
Shri Narendra Kumar Agrawal - Addl. Vice President (Credit)
Shri Surendra Chelawat - Addl. Vice President (Central Office,Jaipur)
Shri Rajneesh Kumar Agrawal - Company Secretary (Addl.Vice President)
Shri Kailash Chandra Sharma - Principal (Staff College)
Shri Mahendra Mohan Gupta - Sr.Asstt.Vice President (Asset Mgmt.& Law)
Shri Suresh Kumar Nainani - Sr. Asstt.Vice President (op&bd)
Shri Bhagwan Sahay Gupta - Sr.Asstt.Vice President (Dmat-GI-Franking-
Shri Om Prakash Tela - Sr.Asstt.Vice President (Credit)
Shri K.M. Garg - Sr.Asstt.Vice President (AMD & Law,Accounts & Taxation)
Shri Ganpat Raj Singhvi - General Manager (P&HRD & Corporate Office )
Shri Kishore Kumar Khandelwal - Dy. General Manager (Exec.Secretary to the
Shri Pradeep Kumar Agrawal - Dy.Gen.Manager (Cap.Raising & Equ.Dilution)
Dr. Navratan Mal Bachhawat - Asstt.Vice President-II (Prio.Sect.& Retail Bank'g)
Shri Sudershan Khabya -Asstt.Vice President- II (Law and Recovery)
Shri Bal Kishan Goyal - Asstt.Vice President-II (Inspection & Audit)
Shri Shakti Prasad Mohanty - Asstt.Vice President-II (Info.Tech.)
Shri Gajanand Gupta - Asstt.Vice President-II (Credit)
Shri Brij Mohan Gupta - Dy.Gen.Manager (Treasury & Investment)
Shri Suresh Chand Jain - Dy.Gen.Manager (Branch Expansion & Premises)
Shri Sunil Gehlot - Dy.Gen.Manager (C.O.Administration)
Mumbai Region - Shri Ved Prakash Goyal - Addl.Vice President
Kota Region – Shri Prem Chand Ajmera - Sr.Asstt.Vice President
Bikaner Region – Shri Mali Ram Sharma - Sr.Asstt.Vice President
Kolkata Region – Shri Dinesh Kumar Garg - Sr. Asstt. Vice President
Bangalore Region - Shri Gopal Narain Mathur - Sr. Asstt.Vice President
Jodhpur Region – Shri Uttam Chand Agarwal - Sr. Asstt.Vice President
Jaipur Region - Shri Bajrang Bahadur Pandey - Sr. Asstt. Vice President
Bhilwara Region - Shri Bharat Singh Panwar - Asstt.Vice President-III
Delhi Region - Shri Harish Kumar Sharda – Asstt.Vice President-II
Chandigarh Region - Shri Rajinder Singh Kohli - Asstt. Vice President-II
Udaipur Region – Shri Shiv Charan Maheshwari - Asstt.Vice President-II
Indore Region - Shri Om Prakash Samaria – Asstt.Vice President-II
The Bank of Rajasthan, with its stronghold in the state of Rajasthan, has a nationwide
presence, serving its customers with a mission of " together we prosper " engaging actively in
Commercial Banking, Merchant Banking, Auxiliary services, Consumer Banking, Deposit &
Money Placement services, Trust & Custodial services, International Banking, Priority Sector
Board of Directors
Shri Niraj Tayal
Shri P. N. Bhandari
Shri Maghraj Calla
Shri K. N. Bhandari
Shri Ved Prakash Khurana
Shri Pran M. Aggarwal
Shri Sanjay Kumar Tayal
Shri K.G. Kurian
Shri Vipul Dhirajlal Mehta
Shri Shekhar Bhatnagar
Shri A. Madhavan
Shri S.B. Mathur
Shri P.L.Ahuja- Managing Director & CEO
Vision, Mission & Value
All India Presence
Be the Most Preferred Bank
Develop Lifelong Relationship
Create Value for
Employees and Stakeholders.
" Together We Prosper"
The bank has achieved the certification (ISO 9002:94) in Standardization in its services at C-
Scheme Branch, Jaipur
QUALITY POLICY To believe in total customer satisfaction by providing them, the value
added quality services right time, first time every time
• To promote customers focus amongst employees;
• To continuously assess customers' needs and work for enhanced customer satisfaction;
• To follow established procedures and work instructions;
• To implement effective control systems for prevention of errors/frauds;
• To continuously train people to upgrade knowledge, skills and orient attitudes to
motivate them to achieve excellence.
• To work systematically and promptly for effective and efficient services comparable
with best of benchmarks in banking
• To maintain safe, clean and healthy environment;
• To review the system & procedure continuously by Business Process Re-engineering.
Product & Services
DEPOSIT & MONEY PLACEMENT SERVICES
1. Saving Bank Account
"Savings Bank Account " is deposit providing any time liquidity with interest earnings.
Who can open An Individual singly or jointly, HUF, Trust, Societies, Associations
the account? etc. can open a savings bank account with a prescribed minimum
balance. A minor who has attained the age of 10 years can also open a
savings bank account independently.
Facility The account under the scheme facilitates acceptance and withdrawal
of deposits in and making payment by cheques.
Interest Attract interest , presently @ 3.5% p.a. paid at half yearly interval
Tax Deduction No
Transferability Available within Bank's Branches.
2. CURRENT DEPOSITS ACCOUNTS
"Current Deposit Account " is demand deposit and is meant for businessmen, firms,
companies, corporations, trusts and individuals with no restriction on number of drawals.
Who can open An Individual singly or jointly, Sole proprietary business concern
the account ? ,Partnership or joint stock Company, HUF firms, Limited Companies,
Trusts, Association, Local Bodies, Societies, Executors and
Administrators, Govt./Semi Govt. Undertakings, Agents on behalf of
principal etc. can open the account under the scheme with a
prescribed minimum balance.
Interest No interest payable
Nomination Accepted in the accounts of individual(s) and sole-proprietorship
Transferability Available within Bank's Branches
For 61 years, it has been our endeavor to achieve the growth on consistent basis (see Table).
With 457 branches nationwide, 1 extension counters and 5 service branches, the Bank is the
largest private sector bank in North India.
Our Growth over Five Decades: (Rs.in Millions)
Dec.50 Dec.60 Dec.70 Dec.80 Mar.90 Mar.200
Deposits 15.05 53.63 196.05 1256.4 7204.3 74058.9
Advance 4.96 26.33 115.44 720.06 3642.3 24316.3
Capital 0.52 0.92 2.00 3.00 17.50 1075.7
Reserves 0.18 0.80 2.31 8.42 82.55 2219.1
No.of 21 36 70 210 274 354
*including Capital Reserve
Features of BOR Tax Savings Term Deposit Account – 2008
(BTSTD account - 2008)
Name of Account "BOR Tax Savings Term Deposit Account - 2008
(BTSTD account - 2008)"
Eligibility Individuals - Singly or jointly (Jointly by two adults or
one adult and one minor payable only to either or
survivor)/ Hindu Undivided Family (HUF) for
domestic as well as NRO accounts.
Minimum & Minimum Rs. 100/- or multiple thereof subject to a
Maximum Deposit Maximum of Rs. 1.00 lacs per year.
Interest Rate These Deposits will carry interest @ 9.50% presently
(w.e.f.21/07/2008) . The change in interest rate of these
deposits will be advised separately alongwith the
change in interest rates on normal deposits. Benefit of
additional interest to staff members and Senior
Citizens will be allowed as in existing scheme.
Payment of Interest Interest may be paid either on maturity or on
quarterly/monthly basis as per option given by the
Period of Deposit The deposit will be accepted for a fixed term of 5 years
commencing from the date of the receipt.
Note: In the event of death of the depositor/ joint
depositors the nominee will be entitled to encash the
Term Deposit at any time before or after the maturity.
In case of such payment before maturity the rate of
interest payable will be the rate applicable on the date
of deposit for the period for which the deposit has
Tax Benefit Deposit will be treated as an investment U/s 80(C)
within an overall limit for investment of Rs. 1.00 lacs
p.a. and will be available to the first named person in
case of deposits in joint names.
TDS TDS will be deducted as in case of other term deposit
Nomination facility Nomination facility will be available as in case of
normal deposit accounts. However, no nomination
shall be made in respect a term deposit held by or on
behalf of a minor.
Pledge of term deposit The term deposit shall not be pledged for securing a
loan or overdraft or as security for any other asset or
as primary or collateral security.
Special Condition 1. The term deposit receipt shall bear the name,
address, permanent account number and
signature of the assessee depositor.
2. The term deposit can be transferred from one
branch to another branch of the bank but it can
not be transferred to another bank.
3. In case no instruction for renewal on maturity
are given by the depositor/assessee the renewal
wll be done treating the deposit as a normal
Rates of Interest on Term Deposits (Domestic)
w.e.f 25.08.2008(Rate in % p.a)
Rate of Annualized Yield at the minimum stage of
Interest the slab
7 Days to 14 Days* 4.00% 4.00%
15 Days to 45 Days 5.25% 5.25%
46 Days to 90 Days 5.50% 5.50%
91 Days to 120 Days 6.00% 6.00%
121 Days to 179 Days 8.00% 8.00%
180 Days to 364 Days 9.00% 9.10%
1 year to 2 years 10.60% 10.85%
Above 2 years to 3 years 9.50% 10.33%
Above 3 years 9.25% 10.52%
• Minimum Rs. 1.00 Lacs
• Additional interest @ 0.35% over the normal rate for maturity period of 1 year to 2
years and @ 0.50% over the normal rate for other maturity periods will be given to
resident senior citizens.
• Additional interest @ 1.00% over the normal rate will be given to members / retired
members of staff. However, in case of senior citizens who are also retired members of
staff, only the benefit of 1.00% additional interest payable in capacity of retired
member of staff will continue.
• Penalty for premature payment as well as premature renewal of term deposits accepted
and renewed on or after 04.12.2006 will be charged in the form of interest @ 1.00%
below the rate applicable for the period for which the deposit has remained with the
Bank as per Circular No. 58/Dep/20/8121/2006 dated 02.12.2006. Other terms and
conditions stated in the previous circular remain the same.
• It may further be noted that above mentioned rates of interest are not applicable on
Interbank deposits. Branches are advised to approach T&I Deptt. for acceptance /
placement of inter bank deposits and should continue to be guided by circular No.
51/Dep/15/5609/99 dated 14.12.1999 for such deposits.
Branches are advised to approach Shri B.S. Gupta, Product Head(Deposits), Corporate
Office, Mumbai for quoting / bidding higher interest rates on bulk deposits of Rs. 50 lacs &
over. However, in cases where the deposits have been accepted at rates higher than the card
rates, the interest in case of premature payment should be paid at the applicable card rate
for the period for which the deposit has actually run with penalty as applicable and higher
preferential rate should not be paid.
Commercial banking :
To trade and industry :-
To meet different needs of the customer, the Bank provides various
services (illustrative only, conditions apply).
Fund Based :-
1. Overdrafts in Current Accounts (O.D.)
2. Cash Credits (C.C.)
4. Bills purchase (BP) and Usance Bills Discounted (UBD)
5. Packing Credit Loans (PCL)
6. Foreign Bills purchase and Discounted (FBD/FUBD)
7. Import/Export Loans
8. Credit Facility to SMEs Sector
1. Letter of Guarantee (L.G.)
2. Letters of Credit (L.C.)
3. Deferred Payment Guarantees (DPG)
Loans are provided against term deposits of the Bank, Govt. & stock exchange
securities, and for the purchase of machinery, consumer durables, houses, vehicles etc. Loans
are repayable on instalments basis.
Special schemes on attractive terms & condtions are in operation for purchase/
construction/repairs of houses to all, and vehicle loans / equipment finance to doctors and other
:------ RATES OF INTEREST on various types of credit facilities (subject to change from
time to time)
Benchmark Prime Lending Rate (BPLR) (w.e.f. 01.08.2008) 16.00%
Housing Loan to individuals (Under Fixed/ Floating Interest Rate Scheme)
Rate of Interest upto Rs. 30.00 lac
Repayble Upto 5 Years Above 5 YearsAbove 10 YearsAbove 15 Years
Upto 10 Years Upto 15 Years Upto 20 Years
(Fixed) 12.50 % 12.75 % 13.00 % 13.50%
(Floating) 11.50( RPLR +11.75 ( RPLR +12.00( RPLR +12.50 ( RPLR +
1.50) % 1.75) % 2.00) % 2.50) %
Rate of Interest above Rs. 30.00 lac
Repayble Upto 5 Years Above 5 YearsAbove 10 YearsAbove 15 Years
Upto 10 Years Upto 15 Years Upto 20 Years
(Fixed) 13.00 % 13.50% 14.00% 14.50%
(Floating) 12.00( RPLR +12.50 ( RPLR +13.00( RPLR +13.50 ( RPLR +
2.00) % 2.50) % 3.00) % 3.50) %
Consumer Loan(Personal Loan)(w.e.f. 01.08.2008) 19.00 %
(3% + BPLR)
Vehicle/Car Loan (4-Wheelers) (w.e.f. 01.08.2008)
• For Salaried individuals (Govt. PSU & other reputed16.50 %
companies) & for Doctors & other Professionals. (0.50%
• For Self employed & other individuals not classified 17.00 %
Education Loan (w.e.f. 01.08.2008) 16.00 %
OTHER CHARGES :
1. Processing Charges:
(a) Loan Upto Rs. 2.00 Lacs 0.50 % of
(b) Loan Over Rs. 2.00 Lacs 1.00% of
2. Foreclosure Charges 2% of prepaid
Processing Charges: 2.00% of
Foreclosure Charges 2% of prepaid
Processing Charges: 1.00% of
Foreclosure Charges 5% of prepaid
CREDIT FACILITY TO SME SCHEME
1. SME Includes:-
I. Tiny Industries:- having investment in plant and machinery up to Rs. 25.00 lac.
II. Small Scale Industry:- having investment in plant and machinery up to Rs. 100.00 lac and
Rs. 500.00 lac in certain specified items under hosiery, hand tools, drugs, pharmaceuticals and
stationary items and sports goods or any other as may be notified by the Central Govt. from
time to time as eligibility criterion for SSIs.
III. Medium Enterprises:- having investment above SSI ceiling (i.e. Rs. 100.00 or Rs. 500.00
lac as above) and up to Rs. 1000.00 lac in plant and machinery.
IV. Small Service & Business Enterprises:- Industries related service and business
enterprises with investment up to Rs. 10.00 lac in fixed assets excluding land and building are
eligible for benefits of SSI Sector.2. Processing of Application:- Application received in the
prescribed format (complete in all respect) will be disposed off as under
I. Up to loan of Rs. 25000.00 ------ Within One Week.
II. Above Rs. 25000.00 and up to Rs, 50000.00 -- Within Two Weeks
III. Above Rs. 50000.00 ---- Within Three Weeks.
3. Collateral Security :- Loans up to Rs. 5.00 lac can be considered without collateral security
provided the applicant has good track record and financial position.
4. Composite Loan:- Composite Loan can be sanctioned up to Rs. 100.00 lac for SSI units.
5. Rate of Interest:-
i. Up to Rs. 2.00 lac. -- 11.00%
ii. Above Rs. 2.00 lac -- 11.50%
to Rs. 10.00 lac
iii. Above Rs. 10.00 lac
to Rs. 100.00 lac-- In the range from BPLR ( The BPLR w.e.f. 01.07.2008 @ 15.00% ) to
BPLR + 2% (As per Credit rating of borrower as per rules of Bank)
Note:- Rate of interest is subjected to change from time to time.
Debt Restructuring Mechanism : Small and Medium Enterprises (SMEs)
1. SME Includes :- Tiny Industries, Small Scale Industries (SSI),
Medium Industries (ME) and Small Service
& Business Enterprises.
2. Eligibility Criterion :-
Following viable or potentially viable SMEs are eligible
a) All non-corporate SMEs irrespective of the level of dues
b) All corporate SMEs, which are enjoying credit facilities
from a single bank, irrespective of the level of dues to
c) All corporate SMEs, which have funded and non-funded
outstanding up to Rs.10 Crores under multiple /
consortium banking arrangement.
Accounts involving fraud and malfeasance and / or classified, as
"Loss Assets" will not be eligible for restructuring under these guidelines.
3. Viability criteria :- The unit should become viable in 7 years and the
repayment period for restructured debt shall not exceed
4. Restructuring Parameters :-
a. Minimum ROCE (Return on Capital Employed)
equivalent to 5 years G. Sec. + 3%.
b. Minimum Average DSCR (Debt Service Coverage
Ratio) should be more than 1.25 and in every year
it should be more than 1.
c. Benchmark gap between IRR (Internal Rate of Return)
and COF (Average Cost of Funds) should
be at least 1%.
5. Implementation Period :-
60 days from date of receipt of request / reference.
6. Extent of Relief / Concession / Sacrifice :-
Interest not below the ceilings mentioned as under.
Interest 1.5% below the
Funded Interest Term Loan
Working Capital Term Loan
Interest 1.5% below the
Concession in Interest not more
than 2% (not
more than 3% in case of tiny /
sector units) below the contracted
Additional Loan / Contingency
Interest not below 1.5% from
BPLR of Bank
In no case sacrifice in principal and simple interest shall be considered.
Note:- Rate of interest is subjected to change on review of company's performance and
the prevailing interest rate scenario after every 3 years from the date of sanction.
The Bank has variety of credit schemes specially suitable to individuals based on the needs,
personal repayment capacity (illustrative only, conditions apply).
To Individual etc apart from credit facility to trade, industry, export and priority sector
1. Housing Finance :
It is provided to an
for the purpose of
construction of house/
purchase of ready built
house/land / extension
of existing house/ repair
of house. The amount of
finance depends upon
the repayment capacity
of the applicant. (Salient
2. Car Finance :
It is provided to an
singly/jointly, firms etc.
for the purchase of new
brand car for the
purpose of personal/
needs. The amount of
finance depends upon
the repayment capacity
of the applicant.
3. Loan for consumer
It is provided to an
singly/jointly, firms etc.
NOTE: ON ALL ABOVE LOANS, THE INTEREST IS CHARGED ON REDUCING
Finance concept :-
Finance is the blood of business. It is as important for industry and commerce as lubricant for
wheels, marrow for bones and blood for arteries. In modern times, no trade, industry or
commerce can operate its activities without finance. Finance is needed for establishing,
developing and operating the business efficiently. Without proper financing, even the best
project remains a futile exercise and if the project is put in to operation, later on many problem
crop up in its execution and control. Actually, sometimes it is not the inadequate finance that is
the cause of failure of a business, but the mismanagement of resources that is ultimately
responsible for it. The survival and growth of a firm is possible only if it is utilizes its funds in
a optimal manner. Therefore, it is correct to say that without adequate finance no business can
survive and without efficient financial management no business can prosper and grow. Hence,
the success of a business depends on proper supply of finance and its efficient management.
Bank of rajasthan limited provides the loan. These are given below:-
(1) mortgage loan :-
first of all, before providing the mortgage loan, we calculate the rating
(as prescribed structure which is provided the bank). If the customer rating is more than 50
than it is considered that loan can issue by the bank. After then we calculate the average
income of last of two year and divide by the 12 for getting monthly income. After getting
monthly income,it is considerd that loan payment capacity is fifty percent,then it is decided
that how many loan should be issued. The rating Performa is as follows :
Mortgage loan scheme against property for individual
1. Eligibility :- individuals( against self property/ properties or property/
properties owned by his spouse, children) HUF concern (against self owned
property/ properties or property /properties by owned by karta, major
coparceners, his /her their spouse, children)
2. Amount :- maximum loan up to rs.100 lacs. Additional advance against
same property can be allowed to same or other party if there is suuffcient
residual value i.e. remaining value after advance against mortgage loan is
sufficient to take of other advance. Property where housing loan is already
availed can also be considerd for loan under this scheme if residual value is
sufficient and eligibility criterion is complied with.
1. Purpose :- personal needs.
2. Nature of advance : by way of loan or overdraft
3. Security :- equitable mortgage of the property for which the advance is
sanctioned. It includes:
a) residential /commercial immovable property ;
b) free hold land (vacant plot);
c) leasehold land (vacant plot) subject to permission of lessor (viz.
respective municipal corporation, development authority etc.) is
d) leased/ rented property provided owner & lessee/ tenant agree for
assignment of lease income/ rent in favour of bank for direct receipt
of the same in the loan/ OD a/c.
4. Guarantee :-
personal guarantee/ guarantee of owner (s) of the (in case property is owned &
occupied by person other than the borrower / applicant ). In case of HUF-
personal guarantee of karta, major coparceners.
5. interest :-
For overdraft : variable, at 1% above BPLR(monthly rests) irrespective of
sanctioned amount i.e. 14.5 % at present .
For loan :- fixed at BPLR (monthly rests) irrespective of sanctioned amount
i.e. 15% at present.
6. penal interest :- 4% above the normal rate applicable on the defaulted
7. Foreclosure charges :- 2% of prepaid amount
(10) amount of advance :- four times of the average of gross yearly income as
declared in the income tax return of the immediately completed past two
financial years or 70 % of the property value ,assessed by the bank’s approved
valuer or assessed by the branch manager as per the spot visit report
whichever is lower.
( in case of salaried / self – employed / professionals/ businessmen, the income
of spouse and depreciation can be clubbed for arriving at the eligible loan/
overdraft amount.in such cases the spouse should become co-borrower or his /
her personal guarantee should be obtained.)
(a) Loan – maximum 180 equated monthly installments.
(b) Overdraft – repayable on demand subject to yearly review. Interest is to
recovered on as and when debited basis. Annual review to be based on
income tax, audited balance sheet (wherever applicable) business statistics,
conduct of account, earning etc. the utilization of the limit should be at
least 80%, otherwise commitment charges @ 2% on the unutilized portion
shall be levied.
In case of loan/ overdraft facility the annual repayment obligation is
subject to following condition :
1.In case of professional / self-emlpoyed personal / businessmen / entrepreneurs etc. the
annual repayment obligation (including all other repayment commitments) should not
exceed 75 % of the gross yearly income.
2. In case of loan to salaried class, the total future yearly obligation ( including all other
repayment commitments) of the borrower should not exceed 60 % of the gross yearly
salary of the borrower.
Estimated interest amount for full year on sanctioned OD amount will be considered as
annual repayment obligation in case of overdraft facility .
12. Procession charges :-
a. For loan :- @ .50% of plan sanctioned (one time)
b. For overdraft :- @ .50% p.a. on overdraft sanctioned limit and 0.50 % for the
subsequent renewal every year for each calendar year basis.
Out of pocket expenses ( valuation, advocate fee, documentation, stamps, inspection
charges etc.) to be recovered from the borrower on actual basis, before release of facility.
a. insurance of immovable property based on value of land and
quality of construction.
b. Possibilities of obtaining insurance policy (term insurance policy /
endownment policy ) of the life of borrower for equivalent amount
of loan. The policy to be assigned in favour of the bank. An
undertaking to renew the insurance policy/ pay premium directly
by bank by debiting the loan / OD a/c shall be taken.
(13) Documentation :-
Loan application in prescribed format as accepted in case of retail loan.
Affidavit from the owner of the property that the subject property is
free from all encumbrances, is undisputed and has not been rented/
leased out and is self eor their spouses.
Undertaking from the owner of the property that the property will not
be given on rent /leased out /assigned during the currency of the bank
Memorandum of deposit of title deeds of the property alongwith
complete chain of original documents,to pass on perfect & valid
equitable mortgage in bank’s favour as per legal opnion of bank’s
advocate .DP notes, letter of waiver(LA-64),letter of guarantee (LA-225),
letter of continuity (LA-5 in case of overdraft facility).
Legal opinion & non-encumbrance certificate of advocate on bank’s
panel and valuation report from bank’s panel valuer at party’s cost.
Loan agreement (same as taken in case of suvidha loan)
For loan – post dated cheques (PDCs) favouring “ the bank of Rajasthan
ltd.” To be obtained.
For overdraft – 3 post dated cheques (PDCs) favouring “The Bank of
Other document /undertaking i.e. disclosure of default and disclosure to
The security, property under equitable mortgage shall be verified on
yearly basis and a spot visit report to be kept on records. In case of any
changes affecting interest of the bank, corrective measure are to be
taken and reported to regional office.
The advance to individual /HUF will be classified as non- priority sector-
real estate advance.
PERSONAL LOAN :- first of all, before providing the personal loan, we calculate the
rating (as prescribed structure which is provided the bank). If the customer rating is more
than 50 than it is considered that loan can issue by the bank. After then, we calculate the
average income of last of two year and divide by the 12 for getting monthly income. After
getting monthly income,it is considerd that loan payment capacity is fifty percent,then it is
decided that how many loan should be issued. There is some circular of personal loan :-
Salaried individual with permanent service of minimum three years in government,
PSU/MNC,reputed public or private company, professionals like doctors, chartered
accountants, company secretaries, MBAs, engineers etc, self employed other than
professionals, businessmen etc. other individuals not classified like partners or
directors having cash credit accounts of their firms or companies.
(2) INCOME :-
salaried individual :- minimum salary of rs. 7500/-p.m.
self employed / professional/ businessmen / others:- minimum average income
RS. 1.00 lac last three year as per income tax return.
(3) PURPOSE :- To meet personal expenses
(4) AGE :- minimum 24 year, maximum 65 years inclusive of loan period.
(5) LOAN AMOUNT :- in case of salaried individual :- minimum rs.25,000/-
And maximum rs. 10.00 lacs.
Self-employed/ professionals/ businessmen/ other individuals not classified :- minimum
rs.25,000/- and maxamimum rs.15 lacs.
(6) ASSESSMENT OF LOAN AMOUNT: -
salaried individual: - 5 to 12 months salary, subject to the condition that total
deductions including installment of proposed loan should not exceed 50% of the net
salary (i.e. gross salary less p.f. & income tax). The EMI should not exceed 20% of
gross monthly income.
Professional /self-employed persons/ businessmen/other individuals not classified :-up
to 40% to 150% of average annual income of last three years.
Repayment government & MNC’S reputed Professional: self employed
period PSU employee public or doctors, other than
private charted professional
company accountants,CS, and
employees MBA,engineers businessmen
Up ro 12 month 5 month salary 5 month salary 40% of average 40 % of average
annual income annual income
of last 3 years of last 3 years
Above 12 to 24 7 month salary 7 month salary 80% of average 80% of average
months annual income annual income
of last 3 years of last 3 years
Above 24 to 36 9 months salary 9 month salary 125% of 125% of
months average annual average annual
income of last 3 income of last 3
Above 36 to 48 12 months 10 month salary 150 % of 150% of
months salary average annual average annual
income of last 3 income of last 3
(7) REPAYMENT PERIOD :- 12 to 48 months
(8) INTEREST RATE :- 15 % to 22% detailed as under :-
Category Type of Rate of Repayment period &
borrower interest EMI per 10000
1 2 3 4
12 M 24 M 36 M 48 M
Individual Govt. & PSU 3% above 917 499 362 294
employees BPLR i.e.
MNC/reputed 4%above 922 504 367 299
public or pvt. BPLR i. e
Professional and Doctors,CA,CS, 5 %above 926 509 372 304
self-employed MBA, BPLR i.e.
persons Engineers etc. 20%
Businessman / A) income 6 %above 931 514 377 310
Others/ director above rs.3 lac BPLR i.e.
or partner having 21%
cash credit B) income up to 7 % above 936 519 382 315
account with us rs.3 lac BPLR i.e.
INTEREST WILL BE CHARGED AT MONTHLY REST.
(9) SERVICE CHARGE: - 2% loan amount as up-front fee.
(10) REPAYMENT CHARGES :- 2% of prepaid amount .
(11) DISBURSEMENT :- In the SB/CD account of borrower or as per his instruction .
(12) GUARANTEE :- it is not mandatory . The sanction shall be based on the score the
borrower secures. The sanctioning authority shall be authorized to take decisions in this
regard as per score module .
(13) DEFAULT CONVENENTS :- rs 250/- will be charged if cheques is dishonored for
the first time and 350/- for subsequent dishonours. If 3 installment are defaulted
continuously, recovery action will be initiated. The penal interest shall be levied @ 4 %
above applicable rate on defaulted amount.
(14) DOCUMENTS :-
1. D. P. Note
2. Letter of waiver
3. Loan agreement
4. Post dated cheques of equated monthly for the months the amount is sanctioned
• Housing Loan ( Fixed Rate )
• Housing Loan ( Floating Rate )
• Consumer Loan
• Vehicle/Car Loan
• Education Loan
" Interest is on reducing balances "
Housing Loan ( Fixed Rate )
upto 5 Years
Above 5 Years
& up to 10
Above 10 Years
& up to 15
Above 15 Years
& up to
Upto Rs. 30
upto 5 Years
Above 5 Years
& up to 10
Above 10 Years
& up to 15
Above 15 Years
& up to 20
Upto Rs. 30
Rates of Interest
No of Installments
Rates of Interest
Salaried Individuals (Govt.PSU &
Other reputed companies) & for
Doctors & Other Professionals
Self employed & other
individuals not classified
No of Installments
Rates of Interest
No of Installments
Education loan scheme for higher studies
The scheme aims at providing support to deserving / meritorious student for
pusuing technical/professional higher education in India and abroad.
Criteria for selection:-
• Academic performance of student
• Income of the family
• Scope for securing gainful employment after completion of course
• For student in India : professional / technical course/medical science/engineering
• Agriculture/ management /computer science /CA/ICWA/law/BDS/veterinary etc.
• Research in any of the aforesaid field.
• For study abroad : course conducted by CIMA-London /CPA in USA and others
• Research in any of the aforesaid subject leading to doctorate/ PhD.
• For study abroad: courses conducted by cima- London/ cpa in usa and other.
• And all other courses as mentioned in last slide.
• Research in any of the aforesaid subject leading to docotorate/phd
1. admission and tution fee for the course
2. hostel charges
3. examination fee
4. cost jof books
6. equipments/ instruments
7. travel expenses ( incase of overseas course)
8. library and laboratory.
Type of loan :- term loan
Age limit :- 16 to 40 years
Quantum of loan:
For studies in India: up to Rs. 10.00 lacs maximum
For studies abroad: up to Rs. 20.00 lacs maximum
( the amount of loan will be determined by the bank on the basis of estimates given
by the college/ institutes ( with proper documentary evidence) and repaying capacity of
student/ parent subject to the maximum limit.)
(1) loan up to rs. 4.00 lacs- no margin
(2) loan above rs. 4.00 lacs-
a) inland studies 5%
b) abroad studies 15%
Rate of interest
• At BPLR i.e 14.50%
• Penal interest -2% above rs. 2.00 lacs for the overdue amount and period
- Loan up to Rs. 4.00 lacs- no security
- Above Rs. 4.00 and up to Rs. 7.50 lacs : collateral in the form of a satisfactory third
- Above Rs.7.50 lacs : adequate collateral securities equal to the loan amount consisting
of any one or more of the following :-
• Govt. securities, NSC, bank deposit of equivalent value and on mortgage over
immovable property in the bank’s favour.
• Third party guarantee supported by charge over immovable assets of value
equal to loan amount acceptable to bank.
• Loan application and appraisal form (PSD 59)
• Education loan agreement (student and parent/ guardian)
• Letter of guarantee LA-225
• Pledge of securities/equitable mortgage of immovable property, where applicable .
• Post dated cheques
Disbursement will be made in stages as far as possible directly to the college
or institution. Payment in respect of air-fare, books, equipments etc. will be made direct to the
supplier/authorized travel agent. Hostel charges for student going abroad will be remitted as
per RBI guidelines, issued from time to time.
• Wherever the income of parent and or student or sufficient to service the loan, the
repayment will commence after one month of full disbursement. In this case loan will
be repaid within 3-5 year in monthly instalments
• Wherever the income is not sufficient to service the loan, repayment will commence 6
month after the completion of course or one month after the student starts earning,
whichever is earlier. Interest debited will be recovered from the parents till the
• If the student receives any monetary benefits the same will be deducted from the total
No processing charges/upfront charges will be collected on educational loan
Whole life endowment policy in the name of student and/or parent for the equal amount of
loan be obtained and same be assigned in favour of bank if loan amount is more than rs. 4.00
• The loan would be considered on the basis of academic record, net worth and scope for
securing good employment.
• The student should submit progress of his/ her performance to the branch on the yearly
basis till he completes the course.
• The student will have to produce documentary proof in support of his selection to the
course for which the loan is proposed to be availed.
• Advance under the scheme shall be classified under priority sector as hitherto.
first of all, before providing the personal loan, we calculate the rating (as prescribed structure
which is provided the bank). If the customer rating is more than 50 than it is considered that
loan can issue by the bank. After then, we calculate the average income of last of two year and
divide by the 12 for getting monthly income. After getting monthly income,it is considerd that
loan payment capacity is fifty percent, then it is decided that how many loan should be issued.
HOUSING LOAN – APNA GHAR SCHEME
Any person /group of persons, salaried/ self- employed/ business class/ retired
jointly with employed spouse or son having regular income and capacity to repay installments
of proposed housing loan.
Minimum age: - 21 years
Maximum age:- 70 years ( last installment should mature at the age of 70 years)
[ RH are delegated with powers to relax maximum age of applicant up to 75 years subject to
admitting a co-borrower up to 65 years at the time of maturity of loan ]
A. salaried individual: any individual who if in permanent service in government/ reputed
companies having a minimum gross salary rs.8500/- P.M.
B. professionals: doctors, engineers, dentist architects, CAs, cost accountants, CSs MBAs
and other professionals having minimum annual average income of last three years-RS.1.00
c. self employed /business class individuals & other individual not classified above: Minimum
annual average income of last three years- Rs 1.00
[RH are delegated with powers to relax minimum average annual income of first applicant
RS.0.50 lacs for professionals amd self employed /business class individual etc. and of rs
5000/- for salaried class]
Clubbing of income of spouse/sons is permitted if they become co-borrowers
Clubbing of income pf blood relatives (other than spouse/sons) is permitted only if they are
jontly property owner and become co-borrowers)
a. purchase of ready built house/flat,land and construction thereon
b. repairs and renovation
c. shifting/takeover of loan.( Take over of loan availed from other financial
5. Quantum of loan :
for purchase of ready built house/flat,land and construction thereon.- maximum Rs.
For repair and renovation –maximum Rs. 10.00 lacs.
6. rate of interest: RPLR@ 9.50 %
Period of (Interest rate will be charged at monthly rest)
(For loan up to Rs. 30 lac) ( for loan above Rs.30 lacs)
Fixed % Floating % Fixed % Floating %
Up to 5 year 12.00 11.00( RPLR+1.50) 12.50 11.50 (RPLRR+2.00)
Above 5 year 12.25 11.25(RPLR+1.70) 13.00 12.00(RPLR+2.50)
to 10 year
Above 10 12.50 11.50 (RPLR+2.00) 13.50 12.50(RPLR+3.00)
year to 15 Yr
Above 15 13.00 12.00 (RPLR+2.50) 14.00 13.00 (RPLR+3.50)
year to 20
7. Switch over cost :-
Switching from the fixed rate to floating rate and vice versa will attract 1.00%
(excluding service tax) of the outstanding amount.
Reset clause : in case of fixed interest rate,reset clause will be applied after interval of
every 3 years.
A) Loan disbursement between 2.08.2005 to 30.11.2005 : difference between BPLR
and applied rate on the day of disbursement be maintained at the time of application of
b) Loans disbursed after 30.11.2005:- difference between RPLR and applied rate on the
day of disbursement to be maintained at the time of application of reset clause.
8. margin :-
20% for loan up to 20 lacs
25% for loan above 20 lacs
9. Documents related to income proof:-
Salaried persons :- latest salary slip (with deduction), form 16 (with IT return), proof of any
(sanctioning authority can waive the requirement of IT return/ form last three years on case to
case basis. However, form 16/certificate of employer (giving applicant’s annual salary) for last
year be obtained)
Self-employed, professional & businessmen :-
Audited balance sheet, p&l statement , ITreturn [informative about nature of business,
organization, clients, suppliers, employees]
10:- Assessment fo loan amount:-
(A) salaried individuals Up to 36 of monthy gross salary or cost of
project (less 15% margin) whichever in less
Deviations permissible under the delegation Loan amount up to 48 times monthly gross
of Hub in-charge/RH salary with out any additional interest.
Loan amount more than 48 and up to 60 times
monthly gross salary with additional interest
of 0.50% by HUB I/C and 0.25% by RH
Loan amount more than 60 times monthly
gross salary with additional interest of
1.00%by Hub I/C and 0.50% by RH
(Gross salary of preceding month betaken in account for calculation)
(B) Professionals, self-employed, 3 times average annual income of last three
businessmen &other individuals not classified ears or the cost of the project (less 15%
above margin ) whichever is less.
Deviations permissible under the delegation Loan amount up to 4 times of annual average
of Hub I/C / RH income without any additional interest.
Loan amountmore than4 times bu up to 5
times of annual average income with
additional interest of 0.50% by Hub I/C and
0.25% by RH
11. score :
If the borrower secure 50 marks and above the loan is to sanctioned by the regional
head/ hub in- charge within their delegated powers
Deviation permissile under the delegation of regional head :
a) if the score is between 45-49 marks loan can be allowed with additional
interest of 0.50% by retial HUB and 0.25% by Regional head.
b) If the score is between 40-44% marks, loan can be allowed with
additional interest of 1% by HUB and .50% by RH.
12. repayment period :-
Maximum 20 years in cash of purchase /construction of house/flat/ apartment (inclusive of
Equitable mortgage of property to be purchased out of loan
14. processing charge :
Loan up to Rs. 2 lacs :- .50% (exluding service tax) of sanctioned loan amount
Loan above Rs. 2 lacs:- 1% (exluding service tax) of sanctioned loan amount
Reduction in processing charges up to .50% can be considered by loan sanctioning authority
15. prepayment charges:-
2%(excluding service tax) of prepaid amount. However prepayment up to 6 installments (at
the time of closure of account) will not attract foreclosure charges and if the account is marked
for rickovery due to any orregulatery and as result of it the account is prematurely closed no
prememt charges be levied
16. Insurance :-
The property should be fully insured against all possible hazards during the currency of the
loan in favour of the joint name of the borrower and the bank.however the cost of insurance
will be borne by the borrower and will be recoverd in addition to the EMI. The insurance be
got done for construction value. Value of land be reduced from the value of property.
17. recovery/ default convenants:-
A charge of Rs. 250 (excluding service tax) willbe levied in case of dishonour of the cheque
for the first time and rs. 350.(excluding service tax) for the subsequent dishonour. The interest
on defaulted amount will be charged @ 14% p.a. for the period of default. After default of
three consecutive installment necessary recovert action will be initiated by bank.
Feed back of bank:-
During the training period , I collected the information about the
bank that how many customer are satisfied with service of retail advances of bank but In
my observation, most of customer of the bank are satisfied with the immediately service
of the bank. Rate of interest of loan of bank of Rajasthan is high to compare the other
private bank. Behavior of the employee and service of bank is very better to compare the
other bank.Customer satisfaction level is high.
Now, bank is providing rate of interest on term deposit is 10.85% and for senior citizen