Sip report on NPA analysis at Bandhan Bank

1
Summer Internship Project Report
On
‘A STUDY ON NON PERFORMING ASSETS AT BANDHAN BANK’
At
Bandhan Bank Ltd.
Institute Code: 7016
GIDC RAJJU SHROFF ROFEL INSTITUTE OF MANAGEMENT STUDIES
Under the Guidance of
Prof. Dr. Aabha S. Shingvi and Mr.Hiren Joshi (Area manager in Bandhan bank Ltd – Gruh Center)
Professor
In partial fulfillment of the requirement of the award of the degree of
Master of Business Administration (MBA)
Offered By
Gujarat Technological University
Ahmedabad
Prepared By:
Singh Anjali Kumari Vijay Singh
197160592064
MBA (Semester-III)
September 2020

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STUDENT DECLARATION
I hereby declare that the summer internship project report titled “A Study on Non
Performing Assets in Bandhan Bank” is a result of my own work and my
indebtedness towards work publications, references, if any, have been duly
acknowledged. If I am found guilty of copying from any other report or published
information and showing as my original work, or extending plagiarism limit, I
understand that I shall be liable and punishable by the university, which may include ‘
fail’ in examination or any other punishment that university may decide.
Enrollment No. Name
197160592064 Singh Anjali Kumari Vijay Singh
Place: Vapi Date: - 1st September 2020

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INDEX
Chapter:-1 Introduction to Banking Industry
Chapter:-2 Introduction of Bandhan Bank and Gruh Finance
Chapter:-3 Background of the study
Chapter:-4 Literature Review
Chapter:-5 Research Methodology
Chapter:-6 Data Analysis
Chapter:-7 Findings
Chapter:-8 Suggestions
Chapter:-9 Conclusions
Chapter:-10 Bibliography

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CHAPTER 1
INTRODUCTION
TO
BANKING INDUSTRY

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HISTORY OF BANKING INDUSTRY
Modern banking in India originated in the last decade of the 18th century. Among the first
banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829-
32; and the general bank of India, established in 1786 but unsuccessful in 1791.
The largest and the oldest bank which is still in existence is the State Bank of India. It
originated and started working in the Bank of Calcutta in mid-june1806.In 1809, it was
renamed as the Bank of Bengal. This was one of the three banks founded by a presidency
government, the other two were the Bank of Bombay in 1840and the Bank of Madras in
1843. The three banks were merged in 1921 to form the Imperial Bank of India, which upon
India’s independence, became the State Bank of India in 1955.
The Merger of three presidency bank and forming imperial bank of India is done under the
Gorwala committee.
Bank of Calcutta (1806)
Bank of Bombay (1840)
Bank of Madras (1843)
Imperial bank of India (1921)
And then converted into SBI (1955)
S

8
For many years the presidency banks had acted as quasi-central banks, as their successors,
until the Reserve Bank of India was established in 1935. Under the Reserve Bank of India
Act,1934.
In 1960, the State Bank of India was given control of 7 state-associated banks under the State
Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks. They
are as follows:-
1. State bank of Hyderabad
2. State bank of Patiala
3. State bank of Travancore
4. State bank of Mysore
5. State bank of Bikaner and Jaipur
6. State bank of Saurashtra
7. State bank of Indore
First merger of SBI with State bank of Saurashtra was held in 2008. Later in 2010, State
Bank of Indore was merged with SBI.
On 1st April 2017 a mega merger announced by the Modi Government where 5 associates
Of SBI and Bhartiya Mahila Bank get merged into SBI. And it become the top largest
Public sectorbank in India.
In 1969 the Indian government nationalized 14 major private banks, one of the big
banks was Bank of India. In 1980, 6 more private banks were nationalized. These nationalized
banks are the majority of lenders in the Indian economy. They dominate the banking sector
because of their large size and widespread networks.

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Structure of banking system in India
Banking system in India is totally headed by the RBI, India has no central bank before the
formation of RBI. The RBI is known as a supreme monetary and a banking authority in
regulating the banking segments in India. It’s also known as reserve bank has it handles all
the reserve of all the commercial banks.
The banking segments of India is classified into 2 division as shown in the below chart.
Chart No. 1.1 Banking segment in India

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CLASSIFICATION OF BANKS IN INDIA
1. COMMERCIALBANKS
Commercial banks are structured under the Banking Regulation Act, 1949 and their business
model is premeditated to make profit. Their primary function is to accept deposits and grant
loans to the general public, corporate and government. Commercial banks can be divided
into-
1. PUBLIC SECTOR
BANK
2. PRIVATE SECTOR
BANK
3. FOREIGN BANKS 4. REGIONAL RURAL
BANKS

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Public Sector Banks
These are the nationalized banks and account formore than 75% of the total banking business in
the country. 50% of stakes in these banks are held by the government. In terms of volume, SBI
is the largest public sector bank in India.
On 30 August a mega merger of public sector banks was announced by the Modi government.
In which Allahabad Bank get merged into Indian Bank, Oriental bank of commerce and
united bank get merged into Punjab National Bank, Syndicate bank get merged into
Canara Bank, Andhra Bank and Corporation Bank get merged into Union Bank of India.
The followings are the public Sector Banks in India after mega merger.
1) State Bank of India
2) Bank of Baroda
3) Union Bank of India
4) Punjab National Bank
5) Canara Bank
6) Punjab and Sindh Bank
7) Indian Bank
8) Bank of Maharashtra
9) Bank of India
10) Central bank of India
11) India overseas bank.

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1. Private Sector Banks
These include banks in which major stake( more than 50%) or equity is held by private
shareholders. All the banking rules and regulations laid down by the RBI will be applicable on
private sector banks as well. Given below is the list of private sector banks in India:
1. HDFC Bank 2. ICICI Bank 3. Axis Bank
4. Bandhan
Bank
5. YES Bank 6. Induslnd
Bank
7. Kotak
Mahindra
Bank
8. IDFC Bank 9. DCB Bank

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1. Foreign Banks
A foreign bank is one that has its headquarters in a foreign country but operates in India as a
private entity. These banks are under the compulsion to follow the regulations of its home
country as well as the country in which they are operating. Given below is the list of foreign
banks operating in India:
List of Foreign Banks in India
Australia
and New
Zealand
Banking
Group ltd.
National
Australia
Bank
Westpac
Banking
Corporation
Bank
Bahrain
Kuwait
BSE
of
&
AB
Ltd.
Bank Sonali
Bank Ltd.
Bank
Nova
Scotia
of Industrial &
Commercial
Bank of
China Ltd.
BNP
Paribas
HSBC
Bank
PT Bank
Maybank
Indonesia
Mizuho
Bank ltd.
Sumitomo
Mitsui
Banking
Corporation
MUFG
Bank, Ltd.
Co-
operative
Rabobank
U.A.

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1. Regional Rural Banks
RRBs were established on 2nd October 1975 under the provisions of the RRB Act 1976 with a view to
develop rural economy.
Prathama bank, the first regional rural bank of the country was established on 2nd October 1975 with its
head office at Moradabad in terms of the ordinance issued by the government of India in 1975. It was
sponsored by syndicate bank.
South Malabar Gramin bank, a regional rural bank sponsored by Canara Bank is the largest among
the RRBs in the country in terms of total business.
Uttar Bihar Gramin Bank sponsored by central bank of India , is one of the largest RRB in India in
terms of branch network, staff strength and area.
RRBs operate all parts of the country except Sikkim and Goa.
Capital share being 50% by the central government,15% by the state government and 35% by the
scheduled bank.
RRBs are oriented towards meeting the needs of the weaker section of the rural population consisting of:-
Small and marginal farmers,
Agricultural labourers,
Artisans,
Small entrepreneurs,
Mobilise deposits fromrural households,
Providing banking and financial services to rural and semi-urban areas.
Government operations like disbursement of wages, distribution of pension, etc.
Para-Banking facilities like debit cards, credits cards and locker facilities.

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2) SMALLFINANCE BANK
This is a niche banking segment in the country and is aimed to provide financial
inclusion to sections of the society that are not served by other banks. The main customers
of small finance banks include micro industries, small and marginal farmers, unorganized
sector entities and small business units. These are licensed under section 22 of the banking
regulation act, 1949 and are governed by the provisions of RBI act, 1934 and FEMA.
RBI granted in principle approval to 10 entities for setting up small finance bank in
September 2015.
Minimum Paid up equity capital requirement is Rs. 100 crore.
Small Bank can undertake financial services like distribution of mutual funds units, insurance
products and so on, but not without prior approval fromRBI.
Small Banks Can issue Credit cards, loans like personal loan, housing loan, Car loans,
Mortgage loans, undertake lending activities, accept deposit from NRI.
The promoter’s minimum initial contribution to the paid up equity capital of such small
finance bank shall atleast 40% which can be gradually brought down to 26% within 12 years
from the date of commencement of operations.
CRR and SLR criteria is to be followed by as per Schedule commercial Bank.
While mandating that 25% of the small finance bank branches should be in the rural areas
within the first year of operation.
Minimum Loan Size to single person cannot exceed 10% of the total capital funds, and cannot
exceed 15% in the case of group.
At least 50% of its loans should constitute loans and advances of upto 25 lakh.
The followings are the list of Small Finance Banks in India:-
1) AU Small Finance Bank
2) Capital Small Finance Bank
3) Fincare Small Finance Bank( Disha Micro Finance)
4) Equitas Small Finance Bank
5) ESAF Small Finance Bank
6) Jana Small Finance Bank
7) North East Small Finance Bank
8) Suryoday Small Finance Bank
9) Ujjivan Small Finance bank
10) Utkarsh Small Finance Bank.

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2. PAYMENTS BANK
This is a relatively new model ofbankin the Indian Banking industry.
-RBI granted in principal approval to 11 entities for setting up payments bank in august 2015.
-The minimum Capital requirements is 100 crore.
-The stake of promoters should be at least 40% for the first 5 years.
-Accept deposits up to 1 lakh which is the maximum limit, demand deposits and savings bank
deposits could accept fromindividuals and small firms.
-Users can open savings bank account and current account, issue debit cards and ATMs, issue
cheque book, mobile banking and internet banking such as NEFT.RTGS, IMPS.
-Provide basic financial services like access to mutual funds, insurance products, pension
products, Forex services subject to conditions set by RBI.
Payments bank cannot issue credit cards, loans like personal loans, housing loans, car loans,
and mortgage loans, undertake lending activity, Accept deposits fromNRI.
The followings are the payments bank in India:-
1) Aditya Birla Nuvo ltd.
2) Airtel M Commerce Services Limited.
3) Cholamandalam Distribution Services Limited.
4) Departments of posts
5) Fino Pay tech Ltd.
6) National Securities Deposit Limited.
7) Reliance industries limited
8) Dilip Shantilal Shanghvi
9) Paytm
10) Vodafone M- pesa limited.
11) Tech Mahindra ltd.

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Above mention 11 firms, 3 firms gave back their licenses to launch a payment bank and these
firms are Cholamandalam Distribution Services Limited., Dilip Shantilal Shanghvi and Tech
Mahindra ltd.
Airtel is the first payment bank in the country to start as a payments bank from November
2016
Payment Bank Joint venture
Airtel Payments bank Bharti Airtel Ltd. And Kotak Mahindra Bank Ltd.
Indian Post payments Bank 100% funded by government
Jio Payments Bank RIL and SBI
Paytm Payments Bank Vijay Shekhar Sharma and one 97communications
Aditya Birla Idea Payments Bank
Ltd.
Aditya Birla Nuvo ltd. And Idea cellular

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2. CO-OPERATIVE BANK
Co-operative banks are registered under the cooperative societies act, 1912 and previously
they arerun by an elected manging committee but according to new guidelines issued in June
2020 Co- operative bank is also run under the rules and regulations of RBI.. These work on
no-profit no loss basis and mainly serve entrepreneurs, small businesses industries and
self-employment in urban areas. In rural areas, they mainly finance agriculture-based
activities like farming, livestock and hatcheries.
1. urban Co-
operative Bank
2. State Co-operative
Bank
1. Urban Co-operative Bank
Urban co-operative banks refer to the primary cooperative banks located in urban and semi-
urban areas. These banks essentially lent to small borrowers and businesses centered around
communities, localities work place groups.
According to the RBI, on 31st march, 2003 there were 2,104 urban co-operative banks of
which 56 were scheduled banks. About 79% of these are located in 5 states- Andhra Pradesh,
Gujarat, Karnataka, Maharashtra, and Tamil Nadu
1. State Co-operative Banks
A state cooperative bank is a group of the central cooperative bank which acts as custodian of
the cooperative banking structure in the state.
Banks can also be classified on the basis of scheduled and non-scheduled banks. It is essential

19
for every individual to check if they are holding their saving or deposit account with a
scheduled bank or non-scheduled bank. Scheduled banks are also covered under the
depositor’s insurance program of deposit insurance and credit guarantee corporation (DICGC),
which is beneficial for all the account holders holding a savings and fixed/recurring deposits
account. Under DICGC, bank deposits of up to Rs. 1 lakh, including the fixed, savings, current
and recurring deposits, per depositors per bank in the event of bank failure are insured.
a) Scheduled Banks
Scheduled banks are covered under the 2nd schedule ofthe Reserve Bank of India Act, 1934, the
bank should conform to the following conditions:
A bank that has a paid-up capital of Rs. 5 lakh and above qualifies for the schedule bank
category.
A bank requires to satisfy the central bank that its affairs are not carried out in a way that
causes harm to the interest of the depositors.
A bank should be a corporation rather than a sole-proprietorship or partnership firm.
- b) Non-scheduled Bank
Non-scheduled banks refer to the local area banks which are not listed in the second schedule of
Reserve Bank of India. Non-Scheduled Banks are also required to maintain the cash reserve
requirement, not with the RBI, but with them.
Ex:- Money lenders, Sahukars etc.

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CHAPTER 2
INTRODUCTION
OF
BANDHAN BANK AND GRUH FINANCE

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ABOUT GRUH FINANCE
GRUH Finance started operations in January 1988 as a subsidiary of HDFC, the pioneer in
housing finance in India. As on October 16,2019. GRUH Finance has 195 branches across 11
states in India.
With a focus on rural India, GRUH Finance reached 1,131 talukas spread over 125 districts.
More than 50% of the loans advanced by the organization were in rural areas.
On October 17, 2019, GRUH Finance became a part of Bandhan Bank and its products are
available under GRUH Home Loans by Bandhan Bank

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2. ABOUT BANDHAN BANK
The Bandhan Group received a conditional approval from the Reserve Bank of India (RBI)
for setting up a universal bank in April 2014 – one of the two among 25 applicants that
included some of the big business conglomerates in India. The banking regulators gave its
final nod in June 2015.
Shri Arun Jaitley, Union Minister for Finance, Corporate Affairs and Information &
Broadcasting, Government of India, inaugurated the bank on August 23, 2015 in Kolkata
– the first bank to be set up in eastern part of India after Independence. The grand
function was attended by the regulators, policy makers and luminaries from financial sector
and corporate India. Shri Pranab Mukherjee, the then Honorable President of India, graced
Bandhan Bank’s first anniversary Function on August 23, 2016 in Kolkata.
Bandhan Bank is driven by a constant desire to serve better. Bandhan Bank started with 501
branches, 50 ATMs and 2022 Door step Service Centers (DSCs) on day one. Presently,
Bandhan Bank has 4,288 banking outlets pan-India serving more than 1.9 crore customers. Of

24
these outlets, 1,009 are bank branches, 3084 Doorstep Service Centers and 195 GRUH
Centers. The bank also has 485 ATMs
The bank has mobilized deposits more than Rs. 59,908 crore and its total advances stand at Rs.
65,456 crores taking the total business to Rs. 1, 20,364 crores as on December 31, 2019. The
bank has a team of 37,331 employees on roll.
Bandhan Bank offers its world-class banking products and services to urban, semi-
urban and rural customers alike. It is a bank for all but the focus remains unchanged to
meet the financial needs of people who are overlooked by the formal banking system and
create better education, health care and self-employment opportunities. In sync with the
philosophy of “Aapka Bhala, Sabki Bhalai” and keeping financial inclusion at the heart of it,
Bandhan is committed to provide a host of products and services, competitively at par with
India’s top private and state-owned banks.
The success of the organizations measured by the million lives it has touched and the
communities that have blossomed with its tireless efforts. Simply put, when you choose to
bank with Bandhan, you are choosing to be instrumental in the nation’s larger growth story.
1. HITTING FOUR BIRDS WITH ONE BULLET: BANDHAN BANK AND GRUH
FINANCE MERGE
A new entrant in the banking space, Bandhan Bank has acquired HDFC Ltd- promoted Gruh
Finance in an all-share deal. On January 7, 2019, the board of directors of Bandhan bank and
Gruh Finance approved the merger subject to regulatory and shareholder approvals. The
merger will reduce the promoter stake in Bandhan Bank to 61%, from 82.3% as a first step
towards finally reducing to 40% as directed by Reserve Bank of India (RBI) based on norms for
holding of promoters in private sector bank. The RBI’s new licensing guidelines stipulates that
Bandhan Bank’s promoter will have reduce stake from 82% to 40% within three years, to 20%
within 10 years and 15% within 12 years of commencing its business. Post-merger, HDFC Ltd
will hold 15% stake in the merged entity.
 Gruh Finance was incorporated on July 21, as subsidiary of Housing Development Finance
Corporation (HDFC). Gruh Finance has reported strong financials. Gruh Finance has been
growing well with 20% loan and profit CAGR over FY15 to FY18. The company’s return on
equity growth is 30% along and gross non-performing loans of 1.3%, reflecting high stability. It
has very low loan disbursement to developers and the stock has steadily risen. The biggest

24
advantage for Gruh Finance is that it has access to a stable source of funding and ability to expand
its presence in the eastern region on the back of Bandhan Bank’s branch network. Over the

24
years, Gruh Finance has developed a very profitable and niche business franchisee. Both the entity
will now cater to the bottom of the pyramid segment and the acquisition will be complementary
from Bandhan’s standpoint. Gruh Finance is one of the few non-banking financial companies that
have remained an AAA rated entity for the longest time and has high dividend pay-out ratio.
 Bandhan Bank was incorporated on December 23,2014 to provide banking services. In FY18,
it has reported total income of Rs. 55,084.8 million and profit of Rs. 13,455.5 Million. It has a
distribution network of 4,182 banking outlets, 476 ATMs across 34 states. The bank has garnered
sizeable retail liabilities within three years of its operations which is the key strength of the bank.
Its asset quality is impeccable, has a low-cost micro distribution model, strong and loyal micro-
loan borrower base. After the merger, Bandhan Bank would have outstanding loan book of Rs.
50,036 crores based on financials of September 2018. Bandhan Bank, being a micro finance entity,
enjoys high spread and return on assets of 4.25% trailing compared to 2.5% for Gruh Finance.
Under the merger agreement, shareholders of Gruh Finance will receive 568 shares of
Bandhan Bank for every 1,000 shares held. This is at 8% discount to the closing stock price of
Gruh Finance as of January 7 and at a 2.5% premium to the last sixmonths average stock price.
The share swap ratio is in line with six-month weighted average stock price of the two
companies. Post-merger, the entity’s market cap would be Rs 84,000 crore and a customer
base of 1.5 crore. The deal will need approval from RBI, National Housing Bank and
Securities and Exchange Board of India.
- The RBI’s rule does not allow a promoter of one bank to hold more than 10% stake in another
bank.
Although the acquisition gives Bandhan Bank a readymade home finance company to
diversify business, it was the premium offered to HDFC by Bandhan Bank that swung the
deal.
The business models of Gruh Finance and Bandhan Bank are not very different and
there are a lot of synergies. It is widely believed that the merger will create one of the
largest rural and semi-urban lending platforms in the country, increase shareholders
value, expand new branches as Kolkata-based Bandhan Bank is primarily based in east India
and Gruh has wide presence in western India and enable integration of technology. Bandhan
Bank has 51% of its distribution network in eastern India and only 8.5% in western India.
The loan book of the combined lending entity will have 58% micro loans, 28% retail home
loans and 14% other loans. The merged entity will be best placed to reap benefits of growing
income of rural and semi-urban population and also their changing habits.

25
‘To be a world class bank for convenient and affordable financial solutions to all, in an
inclusive and sustainable manner’
‘To provide ourcustomeraccessible,simple,cost-effective andinnovativefinancial solutions ina
courteous andresponsible manner.Tocreate valueforallstakeholders throughacommittedteam,
robustpoliciesandsuperiorsystemsand technolog

26
OUR VALUES:
S-Services
T-Transparency
E-Ethics
P-Politeness
S-Sustainability
QUALITY POLICY:
 To ensure greater quality in giving client benefits.
 To manages clients and to give consistently progress.
 To accomplish our client’s objectives.

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List of current directors of Bandhan Bank
Name Designation
Dr. Aup Kumar Sinha Chairman
Mr.Chandra Shekhar Ghosh
Managing Director
and CEO
Dr. Allamraju Subramanya
Ramasastri
Independent
Directors
Mr.NVP Tendulkar Independent
Directors
Promoters of Bandhan Bank

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1. Suraksha
PRODUCTS (GRUH Center – Home loan vertical)
GRUH Suraksha is a home loan product offered to individuals who are having formal income proof such
as salary slip with PF deductions or IT returns filed for two years or more and where the loan is to be
appraised based on the above formal income sources only.
GRUH Suraksha is offered for purchase/ Construction/ Extension of dwelling unit for a
maximum tenure up-to 30 years.
Loan under GRUH Suraksha is offered up-to 75%/ 80%/ 90% of the cost of property
depending on the norms laid down by RBI and subject to eligibility customer.
Property cost is the cost of land as well as construction thereon. Stamp duty charges,
registration charges or other one-time payable charges are not included while computing
property cost.
Interest rate of this type of loan is 8.7
Advantages-
- Variety of loan products to meet the requirement of all customer segments.
- Decentralized and quick loan processing and disbursement.
- Attractive rate of interest.
- Quick and transparent processing.
- Longest tenure up-to 30 years subject to maximum age norms.
- Offers loans with Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri Awas Yojana
(PMAY) to eligible customer.

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2. Suvidha
GRUH Suvidha is a Home Loan product offered to individuals who are not having formal income
proof such as salary slip with PF deduction or IT returns. GRUH assesses the income of the
applicants based on their cash flow arrived at on the basis of detailed field investigation &
assessment.
GRUH Suvidha is offered for purchase/ Construction/ Extension of dwelling unit for a maximum
tenure up-to 30 years.
Loan under GRUH Suvidha is offered up-to 75%/ 80%/ 90% of the cost of property depending on
the norms laid down by RBI and subject to eligibility of the customer.
Property cost is the cost of land as well as construction thereon,stamp duty charges,registration
charges or otherone-time payable charges are not included while computing property cost.
Interest rate of this type of Loan is 9.25%
Advantages:
- Offers loans with Credit Linked Subsidy Scheme (CLSS) underPradhan Mantri Awash Yojana
(PMAY).

31
3. Sajavat
GRUH Sajavat is offered to individual to meet expenses of repair/ Renovation of their existing
dwelling unit.
GRUH Sajavat can be offered for a maximum tenure up-to 15 years. Repairs/ Renovation such as
painting, plumbing, Re-laying the roof etc can be financed under GRUH Sajavat.
Loan underGRUH Sajavat is offered up-to 75%/ 80% of the cost of repair work.
Interest rate of this types of loan is 9.75% .
Advantages:

32
4. Loan Against
Property
GRUH offers Loan against Property to individuals wherein customers can avail up-to 50% of the
value of the self-occupied residential property or 50% of the value of commercial property for
purposes such as education, marriage, medical, etc.
Interest rate of this types of loan is 11.25% .
Advantages:
- Variety of loan Products to meet the requirement of all customer segments.
- Longest tenure up-to 30 years to maximum age norms.

33
5. Deposits
From October 17, 2019 all deposit products will be available from Bandhan Bank.
Existing deposits will continue as per terms and conditions prevailing on the date of deposits.
Interest and loan repayment will be governed as per prevailing terms and conditions and will be
honored by Bandhan Bank.
MARKETING CHANNELS
Bandhan Bank has some specific channels for the marketing about the bank in market. 1.
Builder Network
Builders they may require so many kinds of loans for their projects. So that Bandhan Bank has the
professional relationship with the builder customers.
2. BBRA (Bandhan Bank Referral Association)
It’s one kind of agency. And it’s critical sources ofmarketing tool for the bank. And this BBRA is
directly connected with Markets Builders.
3. Newspaper
Bandhan Bank is also attracting the customers with the help of newspaper and advertisement in
specific way.

34
SERVICES OF BANK
Services are intangible in nature. And it’s too much important for the customers as well as for the
bank to maintain the good relationship with the customers.
So that Bandhan Bank provide so many services to the customer like,
- Online service for the accountholder
- Home Loan app
- EMI
INFRASTRUCTURE FACLITIES
 The bank provides fully furnished infrastructure facilities by bestowing particular
attention towards:
Sufficient space to the
customer, Standard
furniture’s
Providing Drinking water and wash room facilities
And bank take a special interest on senior citizens, handicap people, etc.
 The bank takes attention regarding general up-keep, hygiene cleanliness and
maintenance of branch environment to give convenience to their customers.
 It provides a separate chamber at the branch along with a help desk and a regular
reception counter.
 All employees are wearing an identification badge which display a photo on it and
name on it.
 All the employees are maintaining proper social distancing.

35
SUCCESS STORY
Sunita Reang – Tripura
She lived kilometers away from the city, in a village with no electricity
and bound by communal restrictions. With some support and
understanding, making tribal cloth is now a flourishing business for
Miss Sunita Reang.
Rekha Ekkaldev – Ahmednagar
A business is no business without capital, realized Mrs. Rekha
Ekkaldev after 7 years of continuous effort at establishing her Ganesh
idol making venture. Today she has everything from machinery to
labour and a large-scale production of Ganesh idols.

36
1. Accounts
2. Loans
1. PRODCUTS (Bandhanbank ltd.)
In this Product we are make the savings and its grow in an attractive
interest-bearing savings account and access it at your convenience,
across a wide network of branches & ATMs.
In this product, we can buy your dreams like home and bike, and to
planning your dreams vacation and wedding, fulfill your aspirations with
Bandhan Bank Loans.

37
4. NRI Banking
Its most important product for the rural and urban customers, they can easily save their dreams
like home and bike, a fairy-tale wedding, your child’s education or an early retirement with an
attractive interest bearing.
Being a Non-resident, it’s only but natural to expect world-class level – be it banking or any
other service. We at Bandhan Bank NRI banking will treat you and your needs as special
exclusive.
3. Deposits

38
Bandhan Bank presents to you a new range of credit cards in partnership with standard
chartered bank. In this product we can easily enjoy a host of offers and discounts across
dining, shopping, movies, fuel and much more. You can choose from Bandhan Bank’s wide
variety of credit cards: one, plus and an Exclusive.
Further the bank obtained the approval of NCLT, bench at Kolkata on September 27, 2019.
Then GRUH finance officially merged into Bandhan Bank on October 17, 2019. And the
combined balance sheet in the bank’s Q2 results crossed the RS. 1 lakh crore marks.
The GRUH Finance deal with reduce stake of Bandhan Financial Holdings Ltd in Bandhan
Bank to about 61% from the current 82%. HDFC hold about 15% stake in the merged entity
from about 57% in Gruh Finance.
5. Credit Card

39
COMPETITORS OFBANDHANBANK
Some major competitors: -
1. Canara Bank
2. IDBI Bank
3. Central Bank of India
4. Bank of India
5. Punjab national bank
6. Indian bank
7. Bank of Baroda
8. Union bank of India and
9. Vijaya Bank
10. HDFC Bank
11. Axis Bank
12. Yes Bank
13. ICICI Bank
14. Etc.
However, in terms of market share, SBI stand as a tallest and largest player in the
market.

40
SWOT ANALYSIS
It is a vital tool to understand and to take decision for all the shots of crises in the business
and company, SWOT asses the strength, shortcoming, openings and dangers required in a
business. It also promoting conditions inside and outside the bank
STRENGTH
- Effectively using its capital to generate profit- ROCE improving in last 2 years.
- Effectively using shareholders fund- return on equity is improving from last 2 years.
- Profit margin is in increasing trend.
- Increasing revenue every quarter for the past four years.
- Strong cash generating ability from core business- improving cash flow from operation
for last 2 years.
- Book value per share is improving.
- Company with zero promoter pledge.
- Rising net cash flow and cash from operating activity.
WEAKNESS
- Decline in quarterly net profit with falling profit margin.
- MFs decreased their shareholding last quarter.
OPPORTUNITY
- Decrease in NPA in recent results.
- Decrease in provision in recent.
- Brokers upgraded recommendation or target price in past three months.

41
THREATS
- Companies increasing debt as per annual report.

42
Achievements and Awards
Bandhan Bank
- Economic times Bengal corporate awards in the category ‘Highest Job creator’.
- Entrepreneur of the year awards- Economic Times also by AIMA..
- Finance man of the year award – Bombay Management association.
- Bandhan bank recognized as a global growth company 2014 by world Economic Forum.
- Award for entrepreneurwith social impact in 2014.
- Economic times Bengal corporate awards 2014.
- HR Excellence awards 2011.
- Skoch financial inclusion awards 2011.
- Micro Finance India Award 2009.
- Pro Poor Innovation Challenge Award.
GRUH Finance Ltd.
- Gujarat Ratna Award in 2015-16 – By Smt. Anandiben Patel.
- The Financial Express CFO of the year awards 2017- By Niti Aayog.
- Winner in the Affordable housing finance category at the outlook money awards 2017.
- Award for best performing primary lending institution under credit linked subsidy scheme for EWS/LIG
segment.
- Award for maximum number of loans to EWS segment under CLSS for EWS/LIG.
T

43
CHAPTER: - 3
BACKGROUND OF THE STUDY

44
THEORETICALBACKGROUND OFTHE STUDY
Meaning of Non-Performing Assets: -
Non-performing assets is a loan /advance for which the re-installment of principal or interest or both stays
outstanding for a longer period in simple term non-performing assets means the debt were the re-payment is
irregular its known has non-performing assets (NPA)
Definition of non-performing assets: -
 If the bills obtained or marked down, the bill stays past due for a longer period such as over 90 days.
 If an overdraft or cash credit propels, the record as a stay of “out of request” of an overdraft/money
credit (OD/CC), if the wonderful modify remains wealth of to extent attracting influence as far
drawing the power in each situation where the excellent change in the vital working records.
NPA came into Indian financial system with the introduction of prudential account standard. A benefit,
which include a rented resource, which turns into non-performing when it as stop to produce salary to the
bank Such Non-Performing Asset may have especially characterized credit inadequacies, which chance the
liquidation of the obligation and depicted by unmistakable probability that a bank would support same
misfortune, If the needs are not balanced properly.
Steps were taken to measure the borrowers account when the borrower re pays the remarkable entreat and
segment. In like different manner with the focal points are additionally named as: -
 Non-performing assets.
 Performing/standard assets.

45
A 'Non-performing resource' (NPA) was described as a credit office in view of which the interest as well as
segment of vital has positioned as 'past due' for a predetermined time allotment.
NPA is known as non- performing asset, the assets which are implies the various classifications for loans in
the books of accounts which are default and have arrears on the payment of interest on its initial amount. In
certain cases, debts are being differentiated as non – performing, when advance installments have not been
paid for a period of 90 days or more.
Performing assets are the various differenced standard or the credits where the major period is minimum 90
days through the end of the financial year. It does not cover any hazard to the ordinary business.
A nonperforming asset is benefited where it reimbursement is not consistent. Banks raise assets on crisp
stores, as well as by re- using of credit creation. Apart from this current, NPA’s influences benefits too, as
non-booking premium, wages and further higher provisioning. Since it higher NPAs is higher which implies
a substantial piece of the benefits should be kept aside as arrangement against terrible credits.
Banks usually classify their loans as nonperforming after 90 days of non-payment of interest and principal,
which occur during a term of loan / due to failure at the time of maturity. Loan can be differentiated as NPA.
If the company pay the interest but cannot pay on the maturity along with the principal.
Indian banking industries is facing many issues to raise the level of non-performing assets. Hence RBI, NPA
represent an asset of borrower. NPAs will directly impact on liquidity, profitability as well as overall quality
of assets too and it successful in survival banks too.
The issue of NPA is not troubling the bank even its influencing the whole economy and the size of banking
industries is comparatively more in public domain banks. a NPA is directed loan system in commercial
banks were it need 40% of credit level to its priority sector in the financial system.
A report is proclaimed as NPA in the recuperation of portions on advances and process of different
perspectives according to RBI standards.

46
The RBI Guidelines
To protect the banks and the financial intuition the RBI sets certain Guidelines that are:-
A Banks should have their own standard for their internal monitoring of their various accounts.
 They have to follow the FDCI and the classes of assets.
 The management has to be effectively enough and responsive in operating its conditions as aspect in
impact borrowing.
 If the longer period, then them arises a delay in the payments of accounts and the assets.
 There should be an appropriate loan certification to the auditors and the financial institutions with the
need of the bank.
NARASIMHAM COMMITTEE- FIRST REPORT-HIGHLIGHTS
 Classification of assets i.e. reflect performing and non-performing assets (loss assets and substandard
doubtful) and on NPA which will not to be recognized.
 Priority sectorwhich defined and give bank finance to be regulated to 10%
 CRR and SLR are to be decreased
 Banks have to achieve capital adequacy of 8% by 1997 of Risk weighted assets.
 The uniform accounting practices on income found the asset classification and it’s providing.
 Merger and acquisition of bank to 10 national banks, local banks,and international and rural banks.
 Formation of assets and its reconstruction of funds.
NARASIMHAM COMMITTEE-SECOND REPORTHIGHLIGHTS
 Capital adequacy is been raised from 8% TO 10% in this stage.
 Introduce the income recognition norms of 90 days in phased manner
 2/3 larger banks with tie ups along both international orientation, 8-10 national banks and local
banks.
 Reconstruction of assets companies have been set up to issue bonds which would frompart of 2nd tier
capital.
 The strategic decisions are identified and provide profitable products to the customers .

47
The effects of NPAs
The default of primary sum/ premium diminishes the income to the money lender which will bring about
disturbance of the plans and abatement the financial profit.
NPA reduce earning capacity if the assets. The money blocked in NPA can’t be recycled for future use. In
simple words, NPAs reduce advances turnover constantly affects the potential profits.
Problems effected by NPA
 A high rate of interest and deposits rates may be charged by the bank to re-distribute their losses and
the economic growth is being suffered by the financial markets.
 The owners won’t be receiving a return on capital in the market. It will be the worst case if it fails the
owner may have a chance of lose the assets. It may affect the shareholder pool.
 Non-performing loans will lead to bad investment some time. The credit may be misallocated from
the different good project due to which it won’t receive the failed project.
 There is a fear of NPA’s demoralize the operating staff. Sometimes the staff becomes more sticky
and rigid in handling the advances resulting to the inconvenience to genuine client.
 The banking sector may spill by the NPA and might lead to the economic disturbances.
 Affect the liquidity position of banks.
 Adversely affect the bank balance sheet and services to good customer may get affected.
SymptomsofNPA:
 If the account balance is insufficient
 If there is no minimum balance in the account.
 The installment has not been paid regularly.
 If 1st installment of the loan is not paid.
 The operation of the account is not regular.
 There are various fluctuations in strategies.
 If there is miscommunication between borrower and the bank.
 If there is delay in submitting the stock statements
 There is a chance of drastic change in the govt. polices.
 Many competitions are also an impact with the referred to the market.

48
Causes for NPAs in bank are: -
An account doesn’t turn into an NPA overnight. It indicates the in-sufficiently balances in the loan where it
had to take precautions to avoid the slippage of the record into NPA sector. An interior survey taken by the
RBI tells that the request of unmistakable quality, the accompanying factors added to the NPAs are-
INTERNAL FACTOR
 Time period and cost rates are over ruined during the project implementation.
 In-efficient management of loans.
 Product obsolescence.
 Poor credit appraisals, improper SWOT investigation with respect to the bank.
EXTERNAL FACTOR
 Economic decline.
 Input or power imbalance.
 Rising of price.
 Fluctuation of exchange rates
• Willful Defaults: - The Indian public sector banks are worst hit by these defaults. It is a default
in repayment obligation.
• Industrial crisis:- Industry dependence on banks to fulfill their projects. If any industry is in
crisis, it is bound to hit the banking sector and their NPA will rise.
• Credit distribution Mis- Management:- Often ill minded borrowers bribe bank officials to get
loan with an intention of default.
• Lenient lending Norms:- One of the main reason of rising NPA is the lenient lending norms
especially for corporate honchos where their financial status and credit rating is not
analysed proper.

49
Loss assets
Doubtful
assets
Sub -standard
assets
Standard
assets
Non-performing Assets
ASSETS CLASSIFICATION: -
According to the guidelines of RBI, bank must classify their assets on an on-going basis. The loan
accounts have been classified into 4 categories as shown below.
Chart No. 2.1 Classifications of NPA
Standard assets: - The assets which generate regular income are called standard assets.
Sub-StandardAssets:- The assetswhichisoverdueforaperiodof more than 90 days butlessthan
12 months.
Doubtful asset:- The assetswhichisoverdue foraperiodof more than 12 months.
LossAssets:- The assetswhichare doubtful andare consideredasnon –recoverable bybanks.
Out of these typessub –standard, Doubtful and loss assetsare includedunderNPAs.

50
Gross NPA ratio = Gross NPAs / Gross Advance
NPA ratios = Gross NPA – Gross Provision
Types of NPA: -
The various types of NPA are: -
 Gross NPA
 Net NPA
Gross NPA:-
The gross NPA is a total sum of assets of the loan/credit account which have been classified as NPA under
the guidelines of RBI. the quality of loans has been reflected by the gross NPA which have been made by
the bank. It’s also includes al classified assets.
The formula to calculate gross NPA ratio is-
Net NPA: -
The net NPA is the bank offers deductions for various assets.There is large amount being included in the balance
sheet of the NPA in India. They are different recovery process and the written off the time in India. The formula is
calculated for net non-performing ratios is,
Measurements taken against NPA are
 The bank should lend loans with care.
 The major focus should be on the viability then the categorization.
 The standard assets should be mechanism directly.
 Credit appraisal skill has to be improved.
 There should be prevention against slippage

51
Recovery measure of NPA
There are various measures to be taken for the recovery it should be well planned by the
NPA management areas,
1. Non-legal measures: -
The certain compromises that are essential requirements for the recovery of the amount
due for the period. The bad debts are considered as legal process in loans. The study has
been detail in terms of future gains and quick sacrifice with the effective development
decision has been arrived.
2. Legal measures: -
There are various features, which has no stamp duty payable, the recovery has to be quick.
The reports regarding should be submitted on given time period related to the operation by
the different regions.

52
CHAPTER:-4
LITERATURE REVIEW

53
LITERATURE REVIEW
Amandeep (1991)
He aimed to calculate the benefit and productivity of Indian nationalized banks by go toughing the effect
and needed areas of loaning, credit policies, geographical extension, industrial weakness, company rivalry,
ancillary income, deposit compensation, foundation costs, and put on bank gainfulness. Hence For this
reason the trend examination by ratio analyst and regression analyst were particularly utilized.
C. S. Balasubramanian (2012)
His examination is mainly based on the Indian financial frame work on monetary sector to bring down NPA
in the banking region and, to improve the productivity through large monetary wellbeing’s in banks, in
casual This examination is completely valuable to the financial specialist in the banking area. And who are
willing to invest by equity shares.
Charan Singh, Gaurav Sharda, Namrata Swamy, (2014)
Their investigation which looks at the effect of international Banking on Indian economy. In Future, it says
about the different segments towards the international banking operations in the home country regarding the
creation of NPAs in the host countries, where India as suitable case for it.
Prashanth K Reddy (2002)
His explore is research on the theme of, “A comparative study of NPA in India in the Global Context”
which is analysed through the same and various, remedial measure. In Financial area the change of India has
advanced quickly on various assets like loan cost de regulations, decline in secured requirements, limitations
to pass the prudential standards & hazard dependent on supervision. In this paper which deals with the
experience of the change on the dimension of NPA and recommends components to go through the issues by
illustration on the experiences of various nations.
Dong (2002)
he tells about the idea of NPAs in the Indian financial framework and he talks about the key variables which
are configuration includes that would be very needful for the assets reconstruction companies to assume a
positive role in settling such NPAs.

54
Monika Singla and Dr Sonia Narula (2014)
In their investigation “empirical study on non-performing assets of bank” which tells that the miss board of
bank in their positive connection between all advances, net benefits and NPA of bank which isn’t at all
useful for bank. Bank can’t afford to offer credit to the new clients because of lacking in its finance, which
becomes outstanding NPA.
Neha rani (2014)
“Analysis of non-performing assets of public sector banks” which tells i.e. shares of nationalized banks is
the first sector of NPA were it was large in 2008 but, after that it has declined. Anyway, measure of NPA of
two banks is completely expanded, anyway there % of offer in all NPA is reducing continuously.
Parmar. R (2014)
He Attempts to go thoroughly the current pattern of all advances, net NPA, net benefits, of SBI bank. From
past three years all advances and net benefits was demonstrated upward pattern in the bank. so it has been
highlighted the connection between net profit and net NPA, since SBI indicated positive connection between
net NPA and net profit.
Chatterjee. C (2012)
He tries to concentrate on the problems and conflicts of NPAs, approach which are orders towards RBI,
activities of central government, situation of NPAs area wise and banking sector wise were it at long last
corrective measures for NPAs in India. His article which has made on a comparative statement of NPAs of
public & private part banks and international banks. while it has additionally endeavored to understand the
connection between NPAs net benefits and credit recovery of NPAs by various ways.
Maher (2017)
In his article he has mainly focused on how demonetization has impacted the most pivotal issues 0f keeping
traditional banking industry and digital banking sector. The short run of cash which has effect of
demonetization can been a huge problem in the levels of NPA on bigger scale level due to this he
concentrated the current information which is available on day today newspapers but it has a right NPA level
for a more drawn out run period which he has anticipated. A present moment towards beneficial outcomes of
demonetization can be found in the present NPAs.

55
Piyush and Goyal (2017)
Both of them as Focused on the study were the analyse of NPA, net NPAs furthermore, net NPAs of 10
banks in India where it has to be seen in the relationship between net NPAs, net profits likewise gross NPAs.
The actual point which had been examined was to separate the yearly reports of 10-8 banks were to see the
situation of NPAs in the nations. The study that concludes the NPAs are more in public division banks when
it compares to private division banks.
R. Santhanakrishnan & Dr Ganesan (2017)
In their research paper “non-performing assets” a deep study of SBI have been made to attempt the examine
of the NPA of SBI over the past decades. Starting from financial year 2002 to the financial year 2012. The
researchers on this paper aimed to study the sources of development across various and choose banks. They
extremely examined on the gross and the net NPA of the bank and conducted the investigation on the impact
of NPA through the profitability of the bank. which have also suggested to take measures to improve NPA.
Reserve bank of India (2010)
The Communicated information has been seen on NPA in various paper which have been benefited the
including a rented resource,then its get in to be not used resource when it doesn’t produce the actual income
for bank.
Krishan Chaitanya. V (2012)
He conducted the research stating that a solid financial segment is more vital for thriving economy. The
disappointment on the financial part may have an adverse effect on other various sectors also. The NPA is
one of the main worries for banks in India. The NPAs which reflects its affects and execution of banks . An
abnormal state of NPAs which recommends high likelihood of a colossal number of credit defaulter which
influence the value of the assets.
Dr Tanmay Kumar Pradhan (2012)
His investigation is to discover the larger amount of NPA which has compelled to the banks to take huge
interest costs. This is the major reason to draw in high-chance borrowers which results in tremendous
dimension of non-performing advances in future.

56
But also, many analysts are conducted regarding the impact of NPAs on banking value and stock costs
which are more impacted by the NPA dimensions at certain time.
Amara, Aamir Azeem (2014)
Their research which utilizes the issues of non-performing credits is an essential part for banking segments,
hence it considered has a advancement period. As it understands the banker among investors to moderate the
issue of NPLs with respect to various techniques and strategies. The effect of NPLs has been evaluated
particularly in this investigation about the article with information consist 16 main banks in spite of their
sizes, and proprietorship by using panel fixed effective model.
Mahi pal Singh Yadav (2011)
In this article “Impact of non-performing assets on profitability and productivity of public sector banks in
India” where it has been started when banks directly / indirectly affect the economic development through
many factors. A Deposits of this, consist question which has been raised timely again and again on myriad
restriction of the nationalized banks where it merely fulfils the social agenda of the govt. sector and has been
increased the NPAs of banks.
Ponvannan. S. (2011)
He Stated that the NPA issues which causes problems and measures are taken to conclude the banking
industry where the bank has to undergo a major changes and challenges in the Ist phase of economic
liberalization, since it’s the important credit management which has been emerged. in current trending time
banks are were taken precautions regarding to extend the loans, which causes the mounting of NPAs.
Ms Rajinisaluja and Dr. Roshanlal (2010)
In this article they stated that the expanding NPAs of banking sector is a huge issue for office concern. It
isn’t only an issue for banks yet it’s an additionally to demonstrates the deadly to the monetary development
of the nation. PSBs are under extreme weights of NPAs when contrasted with its partners and private cum
international banks. A NPAs are declined its profitability of the private banks, undermines its money
related wellbeing and it comprise dissolvability. The research of the article expresses to compare
the execution.
.

57
of private & public division banks and it’s a universal bank in India along aside by special reference to their
concerned NPAs.
Mrs. K. Vasuki, Mr. M. Karunakar and Mr. S. Saravanan (2008)
In their article they have tried to highlight different aspects of NPA certain factors contributing NPAs,
Magnitude and outcomes, recuperation strategies, capital sufficiency ratios. Along with the variable adding
to NPA and their extent of NPA is an explanation behind high NPA and their impact on Indian financial
industries. Apart from this the capital hazard weight age of assets and proportions of public banks, the
administration of credit hazard and its measure to control the NPA and its methods are also revealed. The
consistently enduring solution for all the issues of NPAs can be accomplis hed only with the right credit
evaluation & hazard the executives system. Hence it is good to avoid more NPAs in the initial stage of credit
union by taking correct solutions and putting it in the right places of rigorous and allocating the credit
according to the appraisal mechanisms.

58
CHAPTER:-5
RESEARCH METHODOLOGY

59
Statement of the problem:
 The Inquire about particular issues, as a rule in refers to sum of problems where a
specialist experiences their involvement in it.
 The challenge of either a specific a hypothetical circumstance or wants to acquire an
answer for the same.
 The current dissertation has been embraced to do the problem of NPA in Bandhan
Bank.
Needof the study:
 To study what are the role of NPA in banking sectors.
 To know how to operate the variables to manage NPA.
 To comprehend the execution of the Bandhan bank.
 To recognize levels of NPA.
 To study the NPA are the reasons for its crises.
 To understand the steps taken to regulate NPA by Indian banking sector.
 To know the methods adopted by RBI for management of NPA and factors
effecting NPA levels.
Objectives of the study:
The major objectives of the present research are under the following heads: -
 To study the impact of NPA in the banks.
 To analyse the profitability of the bank and to understand the connection relating to
the mechanism of the bank
 To understand the concept of NPA and the difference of assets classification by the
bank. And to go through the precautions and measure taken by the bank to avoid
NPA.

60
Scopeofthe Study:
 Study pertains the NPA in Bandhan Bank and it overall impact on the banks performance.
 Study purely covers different strategies initiated by the bank to avoid the NPAs
 The study takes deep into NPAs in different sectors and comparison of total and percentage of
NPA
 Study depends on the data given by the bank and its sites.
 Survey and assess the aggregate size of the NPAs.
ResearchMethodology:
To accomplish the given objectives, data have been gathered from different sources and its included:
-
 The research is basically found on secondary data were its in descriptive analysis. And the
sources of the data.
 The information is obtained from the account office, by branch managers, promoting research,
research reports, published articles related to NPA.
 The Statistical information on NPA, bank-explicit and economic indicators have been collected
mainly from RBI and Bandhan Bank websites, annual reports and other publications.
Hypothesis:
• Ho: - There is no linear relationship between net profit and net NPA.
• H1:- There is linear relationship between net profit and net NPA.
Limitation on the study: -
 As the guidelines of RBI regarding the NPAs will keep changing every year, the suggestions
and findings are only specified to the particular period of the study.
 The data generated cannot be generalized to other branches.
 Where the bank operations are confidential, various information could not be obtained.
 The non-availability of related information regarding in detail.
 The study is for academic purpose hence it has few limitations.

62
FINANCIAL STATEMENT OF BANDHAN BANK
BALANCE SHEET
Particulars As on 31.03.2020( in
cr.)
As on 31.03.2019( in
cr.)
As on 31.03.2018(
in cr.)
Equity Share Capital 1610.25 1193.08 1192.80
Revaluation reserve 0.00 0.00 0.00
Reserves and Surplus 13585.21 10008.66 8189.14
Deposits 57081.50 43231.62 33869.00
Borrowings 521.35 285.00 1028.94
Other liabilities and
provision
3061.66 1486.99 774.11
Total capital and
Liabilities
91717.80 56441.71 44310.06
ASSETS
particulars As on 31.03.2020( in
cr.)
As on 31.03.2019( in
cr.)
As on 31.03.2018( in
cr.)
Cash and balances with
RBI
6344.91 3879.15 2837.07
Balances with banks money
at call and short notice
2008.00 1923.50 2673.52
Investments 15351.77 10037.48 8371.94
Advances 66629.95 39643.39 29713.04
Fixed Assets 368.77 331.20 238.13
Other assets 1014.41 626.98 476.37
Total Assets 91717.80 56441.71 44310.06
CAPITAL AND LIABILITIES

63
ASSETS QUALITY
Gross NPA 992.78 819.56 373.14
Gross NPA% 1.00 2.00 1.00
Net NPA 389.40 228.32 172.90
Net NPA% 0.58 0.58 1.00
Net NPA to Advances % 1.00 1.00 1.00
Capital Adequacy ratio% 27.00 29.00 31.00
Contingent Liabilities 466.58 120.94 76.24

64
1) % of Net NPA= Net NPA/Gross NPA*100
Interpretation:- From the above chart we can show that Net NPA of Bandhan Bank are in increasing trend
0
10000
20000
30000
40000
50000
60000
70000
80000
19-20 18-19 17-18
Gross Advances
Gross NPA
Years NetNPA( incr.) Gross NPA( incr.)
19-20 389.4 992.78
18-19 228.32 819.56
17-18 172.9 373.14

64
2) Gross NPA= Gross NPA*100/Gross Advances
Years Gross NPA Gross Advances Percentage
19-20 992.78 66629.95 1.49
18-19 819.56 39643.39 2.07
17-18 373.14 29713.04 1.26
Interpretation:-
From the above data it can be said that gross NPA are in increasing and gross advances are also increasing but Gross NPA
percentage are in decreasing trends.
0
20000
40000
60000
80000
100000
120000
140000
160000
Gross NPA Gross Advances
17-18
18-19
19-20

65
3) Gross Advances
Years Gross Advances
19-20 66629.95
18-19 39643.39
17-18 29713.04
Interpretation:-
From the above data we can says that Gross Advances are in increasing trend.
22
23
24
25
26
27
28
29
30
31
19-20 18-19 17-18
Tier-1
Tier-1

65
4) NPA Provision
Years NPA Provision
19-20 3061.66
18-19 1486.99
17-18 774.11
Interpretation:- From the above data we can say that NPA provision are in increasing trends.
22
23
24
25
26
27
28
29
30
31
19-20 18-19 17-18
Tier-1
Tier-1

65
5) Table showing the % of capital Adequacy ratio
Years Tier-1 Tier-2
19-20 25 2
18-19 28 1
17-18 30 1
Interpretation:-
From the above data we can says that Tier-1 capital for 2019-2020 is 25 cr. And tier-2 is 2 cr. Tier-1 capital for 2018-2019
is 28 cr. And tier-2 is 1 cr. And Tier-1 capital for 2017-2018 is 30 cr. And tier-2 is 1 cr.
0
5
10
15
20
25
30
35
19-20 18-19 17-18
Tier-1

65
6) Capital Adequacy Ratio:-
Years Capital AdequacyRatio
19-20 27
18-19 29
17-18 31
Interpretation:-
The Capital adequacy ratio is important for them to maintain as per the banking regulations. Each bank need to create
capital reserve to compensate the NPA.As far as in 2019-20 capital adequacy ratio is better.
25
26
27
28
29
30
31
32
19-20 18-19 17-18
Capital Adequacy Ratio
Capital Adequacy Ratio

66
FINDINGS: -
 As provision regarding NPA of Bandhan bank is rising from last three years.
 Another major finding that net NPA in Bandhan bank are also in increasing trend.
 The development of gross NPA and net NPA has been rising year by year. If
it raises or decline it drastically affects the profits of the bank.
 There is a good relation in between NPA and profits due to improper
choice of customer by the bank.
 The study has found that the management of Non-Performing Assets say
that no statistically significant variations in NPA of Bandhan Bank.
 Bandhan Bank has to work more on ensuring its services more reliable. It’s
important for all services organization, that too in banking sectors
 Bank should ensure that the employees deliver the services on time, as the
time is very much important factor will be purchasing of services.

78
SUGGESTIONS:-
In the period of the project, there was clear i.e. the NPA has major impact in the loan portfolios which affect the
balance sheet of the bank. Then its ultimately effects the profit the banks. However, the bank is also trying its
best to decrease the % of the NPA in upcoming years.
 The Bandhan bank need to control its provision towards NPA by taking some precautions
for the recovery of the loans.
 Bank should proper choice the borrower and should keep good administration which is
favor to the borrowers.
 Bank need to take precautions regarding the credit assessment’s, and should take measures
in pre and post sanction of the loans to avoid slippages and standard assets of NPA.
 Recognitions of NPA in starting stage is very important and certain steps have to be taken
up to recover the loans and to minimize the NPA of bank.
 The bank needs to take some measures and action to recover the loans against the
borrowers for the fast recovery.
 The bank should highlight the potential NPAs under the special category.
 Bank should keep monitoring and should take immediate actions and remedies if it founds
miss usage.
 Bank should audit regularly so that it can ensure the fringe which don’t slip to the NPA
category.
 Bandhan bank has too look after before issuing advance to a customers or proposalhas to
be judiciously examined and then the credit has to be given.

80
CONCLUSIONS:-
The issue regarding nonperforming assets have been a major issue for banking sector in India. The Reserve
Bank of India, as given the guidelines and norms to Bandhan bank to regulate the delince of NPA. The analysis
on NPA regarding reference to Bandhan Bank has striated, to research beyond the circumstance of the non-
performing assets and that effect in the execution of the bank.
Over the range in the undertake usually NPA's have more impact in the evolution in the action of all monetary
foundation effecting their benefits in the report, It finally affect their benefit’s however, it can been seen in this
Bank also it try-out its maximum to decline its NPA's and also taking a good precautions towards its reasons
also.
To wrap up Bandhan Bank had improved to regulate a wrong framework to decide a NPA by which its hold a
standard portfolios in the banking area. credit is revealed by the report that Bandhan Bank NPA however, In hold
its need a great watch to hold up and lessons in the NPA to a lower segment that can boost the improvement of
Bandhan Bank.
I hereby conclude that the analysis of the facts and figures that the financial performance of the Bandhan group
as a researcher regarding NPAs at the Bandhan bank may be considered to be satisfactory with little variations in
quantum and in the percentage as not very alarming.

67
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68
Extra things I learnt during My project:-
Q1) Earning pattern of banking System
Bank
NOW
PROFIT= D-E
= 8.5%-6%
= 2.5%
With this profit banking system is going to manage all their expenses like:-
1) Salary (Paid by head office)
2) Office Rent ( Paid by head office)
3) Electricity Bill( Paid by Branch but with the approval of Head office)
4) Office Expenses( Pantry material, Occasional expenses, AC Maintenance expenses, Furniture and
Roommaintenance expenses,Newspaperexpenses,Tea –coffee expenses,telephone bill expenses) (
Branch but with the approval of head office)
5) Purchase of Furniture and Computer and printer( Done by Head office)
6) Stationery Expenses ( Done by head office)
7) ETC.
Q1) Products which is offered by only Bandhan Bank is as follows:-
(1) Accounts
A) AcceptingDeposits
From general public
B) Moneyis cominginthe
formof Interestand
principal
C) Moneyisgoingout from
the bank inthe form of
loansand advance.
D) The Bank ispaying
interestonthatdepositis
6%
E) The bank isreceiving
Interestfromcustomeron
Loan is8.5%.

68
A) Savings AC
Elite Savings Account Average monthly balance of Rs. 5 lakh in your
savings Account.
OR
FixedDepositrelationshipof Rs.25 Lakh
OR
Total RelationshipValue of Rs.15 lakh(
Savingsbankdepositof minimumRs.2Lakh
and restin FixedDeposit.
Premium Savings Account Monthly average balance required Rs. 100000
Advantage Savings Account Monthly Average Balance required Rs. 25000.
Standard Savings Account Monthly Average Balance required Rs. 5000.
Sanchay Savings Account Monthly Average Balance required Rs. 2000.
Special Savings Account Average Quarterly Balance required Rs. 5000.
GOS Savings Account A zerobalance account for government grants.
It means minimum balance required is NIL.
TASC ( Trust, Association, Society And Club
savings Bank Account)
Design to support non-banking activity. It
means minimum balance required is NIL.
BSBDA Savings Account Designed to enable the common man to open
and maintain a bank account. It means
minimum balance required is NIL.
B) Current Accounts
BiZ Premium current Account
BiZ advantage current Account
BiZ Standard current Account
BiZ TASC
BiZ GOS
C) Salary Account
Corporate Salary Account
Premium Salary Account
Advantage Salary Account
Standard Salary Account

68
(2) Loans
a) Two wheeler loan (The rate varies from 15.50% p.a. to 19.07% p.a.
b) Loan Against term deposits (maximum Loan amount upto 90 % of the term deposit.It is only available for
the term deposits holder in Bandhan Bank.)
c) Personal Loan
d) Gold Loan
e) MSME Loan :- The followings are type of loan which come under MSME categories:-
1) Working Capital loan
2) SME Term Loan
3) Micro Enterprise Loan (It is for those borrowers who have completed a minimum 4 cycles of loan for
our product Suchana/ Shrishti. Minimum and maximum loan amount INR 151000 and INR 300000.)
4) Samriddhi Loan (Samriddhi Loan is for our mature borrowers of banking unit. These small
entrepreneurs have shown considerable success in their endeavorand are now ready to be graduated to a
higher level of entrepreneurship.The Bank wants to be part of their entrepreneurship journey.)
5) Micro Bazar Loan ( This loan is for small entrepreneurs, who have fixed place of delivering services
and have existing supersaveraccount with Bandhan Bank.)
f) Agricultural Loans (It includes Term Loan and Working Capital loan.)
g) Small Enterprise loan
h) Su-Awas loan (It is for both Salaried and non salaried income individual. The product is offered for “pakka
and Semi Pakka “construction types.)
i) Microloans :- The followings are type of loan which come underMicro loans categories:-
a) Srishti: - Meet the growing demand of yourbusiness.
b) Suraksha: - Stress Free Support for medical emergencies.
c) Susikhsha: - Ensure your children education,independently.
d) Suchana: - Fulfill your aspirations with additional revenue.
e) Samadhaan Loan: - This product will be disbursed to our existing borrowers for their working capital
requirement in this Covid-19 pandemic situation.
f) Subriddhi loan:- It shall provides liquidity support to banking unit borrowers during active loan cycle
which shall help our borrowers to sustain and grow their business.

68
Q3) How interest rate on loan is going to be decided (MCLR)? (All data in amount is taken as an imaginary
figures)
Suppose bank is in need of money Rs 50000000. Now they use different sources for obtaining fund.
When bank give loan to the customer they charged 3 types of interest rate.
1) FixedInterestrate: - only1 % people preferfixedinterestrate.Itdoesnotmake fluctuationswiththe
market fluctuations. Generally banks keep fixed interest rate high.
2) Floating interest rate: - 99% people prefer floating interest rate. It changes according to market
fluctuations. Floating interest rate is comparatively low compare to fixed interest rate.
3) Semi Fixedinterestrate: - Name itself suggest half fixed and half floating. It means if in future bank
feelsthattheywantto increasestheirinterestrate due tosome issues(like Covid-19pandemic) then
they are free to increases or decreases of interest rate.
There are also some other criteria are also available for deciding loan:-
If risk is more, then bank can charge 2-3% more interest rate.
Bank isrequiredloanof Rs.50000000.
Nowtheyuse differentsourcesfor
obtainingthese fundslike:-
N
RBI (at 5%) Anotherpublicandprivate
sectorbanks ( 10%)
PublicIssues
like bond(8%)
Debentures(12%)
Average of interestrate of all sources = 5+10+8+12/4
=8.75%
Add:All Bankingandoperational expenses =5.5%( imaginary)
Total = 14.25%
Add:Profitof Bank = 3%
Total Interestbankisgoingtobe chargedby customer =17.25%

68
Generally interest rate is high in mortgage loan.
Generally interest rate is high in informal income proof (Suvidha) loan.
Interest rate is less in case of housing loan (it is less risky).
CLSS ( CREDIT LINKED SUBSIDY SCHEME):- if a personispurchasinghome for the first time then he/ she can
get a loan benefit of 2-3 lakh under govt. Awas scheme.
Q4) Calculation of EMI
Month Loan Amount ROI EMI Interest Principle Bal.Amount
Jan 1500000 8 12000 10000 2000 1498000
Feb 1498000 8 12000 9986.667 2013.333 1495986.667
Mar 1495986.667 8 12000 9973.244 2026.756 1493959.911
Apr 1493959.911 8 12000 9959.733 2040.267 1491919.644
May 1491919.644 8 12000 9946.131 2053.869 1489865.775
Jun 1489865.775 8 12000 9932.438 2067.562 1487798.213
Jul 1487798.213 8 12000 9918.655 2081.345 1485716.868
Aug 1485716.868 8 12000 9904.779 2095.221 1483621.647
Sep 1483621.647 8 12000 9890.811 2109.189 1481512.458
Oct 1481512.458 8 12000 9876.75 2123.25 1479389.208
Nov 1479389.208 8 12000 9862.595 2137.405 1477251.803
Dec 1477251.803 8 12000 9848.345 2151.655 1475100.148
Jan 1475100.148 8 12000 9834.001 2165.999 1472934.149
Feb 1472934.149 8 12000 9819.561 2180.439 1470753.71
Mar 1470753.71 8 12000 9805.025 2194.975 1468558.735
Apr 1468558.735 8 12000 9790.392 2209.608 1466349.126
May 1466349.126 8 12000 9775.661 2224.339 1464124.787
Jun 1464124.787 8 12000 9760.832 2239.168 1461885.619
Jul 1461885.619 8 12000 9745.904 2254.096 1459631.523
Aug 1459631.523 8 12000 9730.877 2269.123 1457362.4
Sep 1457362.4 8 12000 9715.749 2284.251 1455078.149
Oct 1455078.149 8 12000 9700.521 2299.479 1452778.67
Nov 1452778.67 8 12000 9685.191 2314.809 1450463.861
Dec 1450463.861 8 12000 9669.759 2330.241 1448133.62
Jan 1448133.62 8 12000 9654.224 2345.776 1445787.845
Feb 1445787.845 8 12000 9638.586 2361.414 1443426.43
Mar 1443426.43 8 12000 9622.843 2377.157 1441049.273
Apr 1441049.273 8 12000 9606.995 2393.005 1438656.268
May 1438656.268 8 12000 9591.042 2408.958 1436247.31
Jun 1436247.31 8 12000 9574.982 2425.018 1433822.292
Jul 1433822.292 8 12000 9558.815 2441.185 1431381.107
Aug 1431381.107 8 12000 9542.541 2457.459 1428923.648

68
Sep 1428923.648 8 12000 9526.158 2473.842 1426449.806
Oct 1426449.806 8 12000 9509.665 2490.335 1423959.471
Nov 1423959.471 8 12000 9493.063 2506.937 1421452.534
Dec 1421452.534 8 12000 9476.35 2523.65 1418928.885
Jan 1418928.885 8 12000 9459.526 2540.474 1416388.41
Feb 1416388.41 8 12000 9442.589 2557.411 1413831
Mar 1413831 8 12000 9425.54 2574.46 1411256.54
Apr 1411256.54 8 12000 9408.377 2591.623 1408664.917
May 1408664.917 8 12000 9391.099 2608.901 1406056.016
Jun 1406056.016 8 12000 9373.707 2626.293 1403429.723
Jul 1403429.723 8 12000 9356.198 2643.802 1400785.921
Aug 1400785.921 8 12000 9338.573 2661.427 1398124.494
Sep 1398124.494 8 12000 9320.83 2679.17 1395445.324
Oct 1395445.324 8 12000 9302.969 2697.031 1392748.293
Nov 1392748.293 8 12000 9284.989 2715.011 1390033.281
Dec 1390033.281 8 12000 9266.889 2733.111 1387300.17
Jan 1387300.17 8 12000 9248.668 2751.332 1384548.838
Feb 1384548.838 8 12000 9230.326 2769.674 1381779.163
Mar 1381779.163 8 12000 9211.861 2788.139 1378991.024
Apr 1378991.024 8 12000 9193.273 2806.727 1376184.298
May 1376184.298 8 12000 9174.562 2825.438 1373358.86
Jun 1373358.86 8 12000 9155.726 2844.274 1370514.586
Jul 1370514.586 8 12000 9136.764 2863.236 1367651.349
Aug 1367651.349 8 12000 9117.676 2882.324 1364769.025
Sep 1364769.025 8 12000 9098.46 2901.54 1361867.485
Oct 1361867.485 8 12000 9079.117 2920.883 1358946.602
Nov 1358946.602 8 12000 9059.644 2940.356 1356006.246
Dec 1356006.246 8 12000 9040.042 2959.958 1353046.288
Jan 1353046.288 8 12000 9020.309 2979.691 1350066.596
Feb 1350066.596 8 12000 9000.444 2999.556 1347067.04
Mar 1347067.04 8 12000 8980.447 3019.553 1344047.487
Apr 1344047.487 8 12000 8960.317 3039.683 1341007.804
May 1341007.804 8 12000 8940.052 3059.948 1337947.856
Jun 1337947.856 8 12000 8919.652 3080.348 1334867.508
Jul 1334867.508 8 12000 8899.117 3100.883 1331766.625
Aug 1331766.625 8 12000 8878.444 3121.556 1328645.069
Sep 1328645.069 8 12000 8857.634 3142.366 1325502.703
Oct 1325502.703 8 12000 8836.685 3163.315 1322339.387
Nov 1322339.387 8 12000 8815.596 3184.404 1319154.983
Dec 1319154.983 8 12000 8794.367 3205.633 1315949.35
Jan 1315949.35 8 12000 8772.996 3227.004 1312722.345
Feb 1312722.345 8 12000 8751.482 3248.518 1309473.828
Mar 1309473.828 8 12000 8729.826 3270.174 1306203.653
Apr 1306203.653 8 12000 8708.024 3291.976 1302911.678
May 1302911.678 8 12000 8686.078 3313.922 1299597.756

68
Jun 1299597.756 8 12000 8663.985 3336.015 1296261.741
Jul 1296261.741 8 12000 8641.745 3358.255 1292903.485
Aug 1292903.485 8 12000 8619.357 3380.643 1289522.842
Sep 1289522.842 8 12000 8596.819 3403.181 1286119.661
Oct 1286119.661 8 12000 8574.131 3425.869 1282693.792
Nov 1282693.792 8 12000 8551.292 3448.708 1279245.084
Dec 1279245.084 8 12000 8528.301 3471.699 1275773.385
Jan 1275773.385 8 12000 8505.156 3494.844 1272278.54
Feb 1272278.54 8 12000 8481.857 3518.143 1268760.397
Mar 1268760.397 8 12000 8458.403 3541.597 1265218.8
Apr 1265218.8 8 12000 8434.792 3565.208 1261653.592
May 1261653.592 8 12000 8411.024 3588.976 1258064.616
Jun 1258064.616 8 12000 8387.097 3612.903 1254451.713
Jul 1254451.713 8 12000 8363.011 3636.989 1250814.725
Aug 1250814.725 8 12000 8338.765 3661.235 1247153.49
Sep 1247153.49 8 12000 8314.357 3685.643 1243467.846
Oct 1243467.846 8 12000 8289.786 3710.214 1239757.632
Nov 1239757.632 8 12000 8265.051 3734.949 1236022.683
Dec 1236022.683 8 12000 8240.151 3759.849 1232262.834
Jan 1232262.834 8 12000 8215.086 3784.914 1228477.92
Feb 1228477.92 8 12000 8189.853 3810.147 1224667.772
Mar 1224667.772 8 12000 8164.452 3835.548 1220832.224
Apr 1220832.224 8 12000 8138.881 3861.119 1216971.106
May 1216971.106 8 12000 8113.141 3886.859 1213084.246
Jun 1213084.246 8 12000 8087.228 3912.772 1209171.475
Jul 1209171.475 8 12000 8061.143 3938.857 1205232.618
Aug 1205232.618 8 12000 8034.884 3965.116 1201267.502
Sep 1201267.502 8 12000 8008.45 3991.55 1197275.952
Oct 1197275.952 8 12000 7981.84 4018.16 1193257.792
Nov 1193257.792 8 12000 7955.052 4044.948 1189212.844
Dec 1189212.844 8 12000 7928.086 4071.914 1185140.929
Jan 1185140.929 8 12000 7900.94 4099.06 1181041.869
Feb 1181041.869 8 12000 7873.612 4126.388 1176915.481
Mar 1176915.481 8 12000 7846.103 4153.897 1172761.584
Apr 1172761.584 8 12000 7818.411 4181.589 1168579.995
May 1168579.995 8 12000 7790.533 4209.467 1164370.528
Jun 1164370.528 8 12000 7762.47 4237.53 1160132.999
Jul 1160132.999 8 12000 7734.22 4265.78 1155867.219
Aug 1155867.219 8 12000 7705.781 4294.219 1151573
Sep 1151573 8 12000 7677.153 4322.847 1147250.153
Oct 1147250.153 8 12000 7648.334 4351.666 1142898.488
Nov 1142898.488 8 12000 7619.323 4380.677 1138517.811
Dec 1138517.811 8 12000 7590.119 4409.881 1134107.93
Jan 1134107.93 8 12000 7560.72 4439.28 1129668.649
Feb 1129668.649 8 12000 7531.124 4468.876 1125199.773

68
Mar 1125199.773 8 12000 7501.332 4498.668 1120701.105
Apr 1120701.105 8 12000 7471.341 4528.659 1116172.446
May 1116172.446 8 12000 7441.15 4558.85 1111613.596
Jun 1111613.596 8 12000 7410.757 4589.243 1107024.353
Jul 1107024.353 8 12000 7380.162 4619.838 1102404.515
Aug 1102404.515 8 12000 7349.363 4650.637 1097753.879
Sep 1097753.879 8 12000 7318.359 4681.641 1093072.238
Oct 1093072.238 8 12000 7287.148 4712.852 1088359.386
Nov 1088359.386 8 12000 7255.729 4744.271 1083615.115
Dec 1083615.115 8 12000 7224.101 4775.899 1078839.216
Jan 1078839.216 8 12000 7192.261 4807.739 1074031.478
Feb 1074031.478 8 12000 7160.21 4839.79 1069191.688
Mar 1069191.688 8 12000 7127.945 4872.055 1064319.632
Apr 1064319.632 8 12000 7095.464 4904.536 1059415.096
May 1059415.096 8 12000 7062.767 4937.233 1054477.864
Jun 1054477.864 8 12000 7029.852 4970.148 1049507.716
Jul 1049507.716 8 12000 6996.718 5003.282 1044504.434
Aug 1044504.434 8 12000 6963.363 5036.637 1039467.797
Sep 1039467.797 8 12000 6929.785 5070.215 1034397.582
Oct 1034397.582 8 12000 6895.984 5104.016 1029293.566
Nov 1029293.566 8 12000 6861.957 5138.043 1024155.523
Dec 1024155.523 8 12000 6827.703 5172.297 1018983.227
Jan 1018983.227 8 12000 6793.222 5206.778 1013776.448
Feb 1013776.448 8 12000 6758.51 5241.49 1008534.958
Mar 1008534.958 8 12000 6723.566 5276.434 1003258.524
Apr 1003258.524 8 12000 6688.39 5311.61 997946.9145
May 997946.9145 8 12000 6652.979 5347.021 992599.894
Jun 992599.894 8 12000 6617.333 5382.667 987217.2266
Jul 987217.2266 8 12000 6581.448 5418.552 981798.6748
Aug 981798.6748 8 12000 6545.324 5454.676 976343.9993
Sep 976343.9993 8 12000 6508.96 5491.04 970852.9593
Oct 970852.9593 8 12000 6472.353 5527.647 965325.3123
Nov 965325.3123 8 12000 6435.502 5564.498 959760.8144
Dec 959760.8144 8 12000 6398.405 5601.595 954159.2198
Jan 954159.2198 8 12000 6361.061 5638.939 948520.2813
Feb 948520.2813 8 12000 6323.469 5676.531 942843.7499
Mar 942843.7499 8 12000 6285.625 5714.375 937129.3749
Apr 937129.3749 8 12000 6247.529 5752.471 931376.904
May 931376.904 8 12000 6209.179 5790.821 925586.0834
Jun 925586.0834 8 12000 6170.574 5829.426 919756.6573
Jul 919756.6573 8 12000 6131.711 5868.289 913888.3683
Aug 913888.3683 8 12000 6092.589 5907.411 907980.9574
Sep 907980.9574 8 12000 6053.206 5946.794 902034.1638
Oct 902034.1638 8 12000 6013.561 5986.439 896047.7249
Nov 896047.7249 8 12000 5973.651 6026.349 890021.3764

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Dec 890021.3764 8 12000 5933.476 6066.524 883954.8523
Jan 883954.8523 8 12000 5893.032 6106.968 877847.8846
Feb 877847.8846 8 12000 5852.319 6147.681 871700.2038
Mar 871700.2038 8 12000 5811.335 6188.665 865511.5385
Apr 865511.5385 8 12000 5770.077 6229.923 859281.6154
May 859281.6154 8 12000 5728.544 6271.456 853010.1596
Jun 853010.1596 8 12000 5686.734 6313.266 846696.8939
Jul 846696.8939 8 12000 5644.646 6355.354 840341.5399
Aug 840341.5399 8 12000 5602.277 6397.723 833943.8168
Sep 833943.8168 8 12000 5559.625 6440.375 827503.4423
Oct 827503.4423 8 12000 5516.69 6483.31 821020.1319
Nov 821020.1319 8 12000 5473.468 6526.532 814493.5994
Dec 814493.5994 8 12000 5429.957 6570.043 807923.5568
Jan 807923.5568 8 12000 5386.157 6613.843 801309.7138
Feb 801309.7138 8 12000 5342.065 6657.935 794651.7786
Mar 794651.7786 8 12000 5297.679 6702.321 787949.4571
Apr 787949.4571 8 12000 5252.996 6747.004 781202.4535
May 781202.4535 8 12000 5208.016 6791.984 774410.4698
Jun 774410.4698 8 12000 5162.736 6837.264 767573.2063
Jul 767573.2063 8 12000 5117.155 6882.845 760690.361
Aug 760690.361 8 12000 5071.269 6928.731 753761.6301
Sep 753761.6301 8 12000 5025.078 6974.922 746786.7076
Oct 746786.7076 8 12000 4978.578 7021.422 739765.2857
Nov 739765.2857 8 12000 4931.769 7068.231 732697.0542
Dec 732697.0542 8 12000 4884.647 7115.353 725581.7013
Jan 725581.7013 8 12000 4837.211 7162.789 718418.9126
Feb 718418.9126 8 12000 4789.459 7210.541 711208.372
Mar 711208.372 8 12000 4741.389 7258.611 703949.7612
Apr 703949.7612 8 12000 4692.998 7307.002 696642.7596
May 696642.7596 8 12000 4644.285 7355.715 689287.0447
Jun 689287.0447 8 12000 4595.247 7404.753 681882.2916
Jul 681882.2916 8 12000 4545.882 7454.118 674428.1736
Aug 674428.1736 8 12000 4496.188 7503.812 666924.3614
Sep 666924.3614 8 12000 4446.162 7553.838 659370.5238
Oct 659370.5238 8 12000 4395.803 7604.197 651766.3273
Nov 651766.3273 8 12000 4345.109 7654.891 644111.4361
Dec 644111.4361 8 12000 4294.076 7705.924 636405.5124
Jan 636405.5124 8 12000 4242.703 7757.297 628648.2158
Feb 628648.2158 8 12000 4190.988 7809.012 620839.2039
Mar 620839.2039 8 12000 4138.928 7861.072 612978.1319
Apr 612978.1319 8 12000 4086.521 7913.479 605064.6528
May 605064.6528 8 12000 4033.764 7966.236 597098.4172
Jun 597098.4172 8 12000 3980.656 8019.344 589079.0733
Jul 589079.0733 8 12000 3927.194 8072.806 581006.2671
Aug 581006.2671 8 12000 3873.375 8126.625 572879.6422

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Sep 572879.6422 8 12000 3819.198 8180.802 564698.8398
Oct 564698.8398 8 12000 3764.659 8235.341 556463.4988
Nov 556463.4988 8 12000 3709.757 8290.243 548173.2554
Dec 548173.2554 8 12000 3654.488 8345.512 539827.7438
Jan 539827.7438 8 12000 3598.852 8401.148 531426.5954
Feb 531426.5954 8 12000 3542.844 8457.156 522969.4394
Mar 522969.4394 8 12000 3486.463 8513.537 514455.9023
Apr 514455.9023 8 12000 3429.706 8570.294 505885.6083
May 505885.6083 8 12000 3372.571 8627.429 497258.179
Jun 497258.179 8 12000 3315.055 8684.945 488573.2336
Jul 488573.2336 8 12000 3257.155 8742.845 479830.3885
Aug 479830.3885 8 12000 3198.869 8801.131 471029.2577
Sep 471029.2577 8 12000 3140.195 8859.805 462169.4528
Oct 462169.4528 8 12000 3081.13 8918.87 453250.5824
Nov 453250.5824 8 12000 3021.671 8978.329 444272.253
Dec 444272.253 8 12000 2961.815 9038.185 435234.068
Jan 435234.068 8 12000 2901.56 9098.44 426135.6285
Feb 426135.6285 8 12000 2840.904 9159.096 416976.5327
Mar 416976.5327 8 12000 2779.844 9220.156 407756.3762
Apr 407756.3762 8 12000 2718.376 9281.624 398474.7521
May 398474.7521 8 12000 2656.498 9343.502 389131.2504
Jun 389131.2504 8 12000 2594.208 9405.792 379725.4587
Jul 379725.4587 8 12000 2531.503 9468.497 370256.9618
Aug 370256.9618 8 12000 2468.38 9531.62 360725.3415
Sep 360725.3415 8 12000 2404.836 9595.164 351130.1772
Oct 351130.1772 8 12000 2340.868 9659.132 341471.045
Nov 341471.045 8 12000 2276.474 9723.526 331747.5186
Dec 331747.5186 8 12000 2211.65 9788.35 321959.1688
Jan 321959.1688 8 12000 2146.394 9853.606 312105.5632
Feb 312105.5632 8 12000 2080.704 9919.296 302186.267
Mar 302186.267 8 12000 2014.575 9985.425 292200.8421
Apr 292200.8421 8 12000 1948.006 10051.99 282148.8477
May 282148.8477 8 12000 1880.992 10119.01 272029.84
Jun 272029.84 8 12000 1813.532 10186.47 261843.3723
Jul 261843.3723 8 12000 1745.622 10254.38 251588.9948
Aug 251588.9948 8 12000 1677.26 10322.74 241266.2547
Sep 241266.2547 8 12000 1608.442 10391.56 230874.6964
Oct 230874.6964 8 12000 1539.165 10460.84 220413.8611
Nov 220413.8611 8 12000 1469.426 10530.57 209883.2868
Dec 209883.2868 8 12000 1399.222 10600.78 199282.5087
Jan 199282.5087 8 12000 1328.55 10671.45 188611.0588
Feb 188611.0588 8 12000 1257.407 10742.59 177868.4658
Mar 177868.4658 8 12000 1185.79 10814.21 167054.2556
Apr 167054.2556 8 12000 1113.695 10886.3 156167.9506
May 156167.9506 8 12000 1041.12 10958.88 145209.0703

68
Jun 145209.0703 8 12000 968.0605 11031.94 134177.1308
Jul 134177.1308 8 12000 894.5142 11105.49 123071.645
Aug 123071.645 8 12000 820.4776 11179.52 111892.1226
Sep 111892.1226 8 12000 745.9475 11254.05 100638.0701
Oct 100638.0701 8 12000 670.9205 11329.08 89308.99058
Nov 89308.99058 8 12000 595.3933 11404.61 77904.38385
Dec 77904.38385 8 12000 519.3626 11480.64 66423.74641
Jan 66423.74641 8 12000 442.825 11557.18 54866.57138
Feb 54866.57138 8 12000 365.7771 11634.22 43232.34853
Mar 43232.34853 8 12000 288.2157 11711.78 31520.56418
Apr 31520.56418 8 12000 210.1371 11789.86 19730.70128
May 19730.70128 8 12000 131.538 11868.46 7862.239287
Jun 7862.239287 8 12000 52.41493 11947.59 -4085.345785
Q5) Procedure of giving loan:-
Step 1:- Inquiry from customer
Bank asked the below questions from customers:-
- Basic need ( like property purchase etc)
- Sources of income.
- Salaried person/ business man.
- Document list.

68
Step 2:- Preparation of documentation
Scrutiny of documents.
Bank provides application form to customer.
Step 3:- Personal discussion with family (it is always in joint)
Bank asked followings questions:-
- Number of dependence
- All about past loan
- Sources of income
- Total earning member in family
- Bank provides Approximate expenses list
- Purchased amount of property.

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- Required loan amount.
Total cost of property =10lakh
Less: Margin Money =2lakh
Loan required =8 lakh
Step:-4 SystemLogin(Bankfill all the necessaryinformationrelatedtocustomer) and check their CIBIL score,
Valuation Report, Title clearance Report.
Step 5:- Bank visit present residence and proposed property of customer and also their employment place.
Step 6:- Afterseeingall the above information bank said to the customer that we can provide only a specific
amount of loan to you.
It may be total loan amount which is demanded by customer.
It may be less compare to expectation.
We cannot give you a loan by showing your above details.
If Bank provides loan to the customer then only step 7 come into existence otherwise not.
Step 7:- Bank provide loan sanction letter to the customer.
Total loan amount sanction.
Details of EMI
Amount of interest
Years of loan
Image of sanction letter
Step 8:- Disbursement:- Suppose propertycostisRs.10lacs. It isthe policyof bank to payonly85% of property
cost. 15% of property cost is paid by customer (Compulsory).
Step 9:- Sale Deed(All the documentsare registered with the registrar and in this sale deed it is necessary to
mentioncheckissuedonthe name of builder(Like: - CheckNo,Name of Bank, Loan payment years
etc.

68
Q7) List of terms which I learnt during Banking Project.
-Repo rate
-Reverse Repo rate
-Why repo rate is higher than reverse repo rate?
- How repo rate and reverse repo rate affect inflation and growth in the economy?
-How the interest of loan is decided by any bank?
-CRR
-SLR
-NDTL
-Sensex
-Nifty
-Nifty Bank
-CASA Ratio
-OMO
-PLR=base rate
-Bank rate=IBBR
-Market capitalization
-Free Float Market capitalization.
-Holding period return
-ESOP
-MSF
-CIBIL Score
-Large Cap ( Blue Chip Stock)
-Mid cap
-Small cap
-CRAR/CAR

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Sip report on NPA analysis at Bandhan Bank