This document provides a brief profile of small and medium enterprises (SMEs) in India. It discusses the importance of SMEs, defining characteristics of SMEs, an overview of the SME sector in India, and challenges faced by SMEs. Key points include:
1) SMEs are vital for economic growth and job creation, accounting for 60-70% of net job creation in developing countries. However, SMEs face difficulties obtaining financing for expansion.
2) SMEs are defined based on investment in plant and machinery of up to 100 million Indian rupees. The SME sector includes tiny and small scale industries, traders, manufacturers, and service providers.
The document contains the mission statement, vision statement, and analyses of State Bank of India (SBI).
The mission statements focus on becoming a premier Indian financial institution committed to excellence in customer service and shareholder value, while playing a leading role in India's financial sector.
The vision statements articulate goals such as attaining world-class efficiency and professionalism, maximizing shareholder value, and providing opportunities for employee growth.
Analyses of SBI note political, economic, social, and technological factors that could impact its operations, such as government policies, economic growth trends, demographic shifts, and advancing financial technologies.
ICICI Bank is an Indian multinational banking and financial services company headquartered in Mumbai, India. It was founded in 1955 and has over 81,000 employees. ICICI Bank has numerous domestic and international subsidiaries operating in investment banking, life, general and health insurance, asset management, venture capital funds. It has a vision to be the bank of first choice for customers through high quality products and services while contributing positively to markets. ICICI Bank has received several awards for its operations and services.
The document discusses the banking industry in India. It outlines objectives like identifying market share and competition. It describes the market structure in India and globally, with public sector banks, private sector banks, and foreign banks in India. The top 10 banks in India and worldwide are listed. Industry concentration is examined using the Herfindahl Index. Technological changes, demand conditions, pricing, advertising, and mergers and acquisitions in the industry are analyzed. The future outlook is positive due to India's growing population and incomes.
This document provides an introduction and overview of State Bank of India's (SBI) financing activities for small and medium enterprises (SMEs) based on a project report and survey conducted in Rajkot, Gujarat, India. It discusses SBI's history and operations, defines SMEs, describes the importance of SME financing for economic development, and outlines SBI's procedures and services for financing SMEs. The survey found that marketing efforts by SBI helped the bank earn 18 crores of new business from SMEs in the industrial areas surveyed in Rajkot.
Report 2 - Indian Banking system & EvolutionSudiksha Joshi
This document provides an overview of the evolution and reforms of the Indian banking system. It discusses the system in 5 phases from pre-independence to post-liberalization. Some key points:
- The system grew slowly pre-independence and was influenced by commercial principles.
- Post-independence saw nationalization of SBI in 1955 and its subsidiaries in 1969 to bolster priority sector lending.
- The 1969-1985 period saw rapid branch expansion especially in rural areas, increasing deposits and credit. However, problems with asset quality and profitability emerged.
- 1985-1991 focused on consolidation through improving operations and relaxing regulations.
- Post-1991 reforms aimed to increase competition and
summer internship project report on union bank of indiaabhishek rane
The document is a summer internship report submitted by Abhishek Krishnakumar Rane for their Master of Management Studies program through BES's Institute of Management Studies and Research. The report discusses a project conducted at Union Bank of India on opportunities in the power sector and assessing credit viability of power projects. It provides an overview of Union Bank of India, including its vision, mission, history and products/services. It also examines the bank's financial performance, strategies, and departments like marketing, finance, and HR. The report aims to gain comprehensive knowledge of the power sector and analyze various aspects of power project financing in India.
A comparative study of retail banking strategies adopted by various private s...Projects Kart
A comparative study of retail banking strategies adopted by various private sector bank (compared with axis bank to other banks i.e. icici bank & hdfc bank)
The document provides an overview of the banking industry in India. It discusses that banks accept deposits and channel those deposits into lending activities. It then outlines the major functions of banks which include accepting deposits, lending money, remittances, locker facilities, and foreign exchange business. The document notes that the first bank started in India in 1786 and discusses some key milestones in the development of the banking industry in India such as the nationalization of banks in 1969 and liberalization in 1991. It categorizes the banking industry into public sector banks, private sector banks, and cooperative sector and provides details about each. The document also discusses challenges faced by the banking industry such as deregulation and new rules, and future outlooks around risk management
The document contains the mission statement, vision statement, and analyses of State Bank of India (SBI).
The mission statements focus on becoming a premier Indian financial institution committed to excellence in customer service and shareholder value, while playing a leading role in India's financial sector.
The vision statements articulate goals such as attaining world-class efficiency and professionalism, maximizing shareholder value, and providing opportunities for employee growth.
Analyses of SBI note political, economic, social, and technological factors that could impact its operations, such as government policies, economic growth trends, demographic shifts, and advancing financial technologies.
ICICI Bank is an Indian multinational banking and financial services company headquartered in Mumbai, India. It was founded in 1955 and has over 81,000 employees. ICICI Bank has numerous domestic and international subsidiaries operating in investment banking, life, general and health insurance, asset management, venture capital funds. It has a vision to be the bank of first choice for customers through high quality products and services while contributing positively to markets. ICICI Bank has received several awards for its operations and services.
The document discusses the banking industry in India. It outlines objectives like identifying market share and competition. It describes the market structure in India and globally, with public sector banks, private sector banks, and foreign banks in India. The top 10 banks in India and worldwide are listed. Industry concentration is examined using the Herfindahl Index. Technological changes, demand conditions, pricing, advertising, and mergers and acquisitions in the industry are analyzed. The future outlook is positive due to India's growing population and incomes.
This document provides an introduction and overview of State Bank of India's (SBI) financing activities for small and medium enterprises (SMEs) based on a project report and survey conducted in Rajkot, Gujarat, India. It discusses SBI's history and operations, defines SMEs, describes the importance of SME financing for economic development, and outlines SBI's procedures and services for financing SMEs. The survey found that marketing efforts by SBI helped the bank earn 18 crores of new business from SMEs in the industrial areas surveyed in Rajkot.
Report 2 - Indian Banking system & EvolutionSudiksha Joshi
This document provides an overview of the evolution and reforms of the Indian banking system. It discusses the system in 5 phases from pre-independence to post-liberalization. Some key points:
- The system grew slowly pre-independence and was influenced by commercial principles.
- Post-independence saw nationalization of SBI in 1955 and its subsidiaries in 1969 to bolster priority sector lending.
- The 1969-1985 period saw rapid branch expansion especially in rural areas, increasing deposits and credit. However, problems with asset quality and profitability emerged.
- 1985-1991 focused on consolidation through improving operations and relaxing regulations.
- Post-1991 reforms aimed to increase competition and
summer internship project report on union bank of indiaabhishek rane
The document is a summer internship report submitted by Abhishek Krishnakumar Rane for their Master of Management Studies program through BES's Institute of Management Studies and Research. The report discusses a project conducted at Union Bank of India on opportunities in the power sector and assessing credit viability of power projects. It provides an overview of Union Bank of India, including its vision, mission, history and products/services. It also examines the bank's financial performance, strategies, and departments like marketing, finance, and HR. The report aims to gain comprehensive knowledge of the power sector and analyze various aspects of power project financing in India.
A comparative study of retail banking strategies adopted by various private s...Projects Kart
A comparative study of retail banking strategies adopted by various private sector bank (compared with axis bank to other banks i.e. icici bank & hdfc bank)
The document provides an overview of the banking industry in India. It discusses that banks accept deposits and channel those deposits into lending activities. It then outlines the major functions of banks which include accepting deposits, lending money, remittances, locker facilities, and foreign exchange business. The document notes that the first bank started in India in 1786 and discusses some key milestones in the development of the banking industry in India such as the nationalization of banks in 1969 and liberalization in 1991. It categorizes the banking industry into public sector banks, private sector banks, and cooperative sector and provides details about each. The document also discusses challenges faced by the banking industry such as deregulation and new rules, and future outlooks around risk management
The document discusses reforms needed for India's financial system. It notes that India's financial system is underdeveloped but its economy has made progress. Key steps discussed to mobilize funds more effectively include: increasing bank penetration in India by reducing dormant accounts and encouraging debit card usage; reducing the cost of bank intermediation by improving property rights and contract enforcement; lowering the fiscal deficit by cutting government spending or increasing taxes; and developing capital markets through investor education, innovative products, and encouraging domestic institutional investment. Overall the recommendations are for India to capture more savings, privatize industries, reduce subsidies, improve tax collection, and create a more organized business environment to strengthen its financial system.
ICICI Bank Personal Loan can be made use for any kind of work that may include the renovation of your house, planning your holidays, purchasing a consumer durable, for education purposes, for a wedding in family. Personal loans can be availed at a fixed rate of Interest, which is charged on monthly reducing basis.
This document provides an overview of the history and operations of State Bank of India. It discusses how SBI originated from three presidency banks (Bank of Bengal, Bank of Bombay, and Bank of Madras) established in the early 19th century in India. These banks amalgamated in 1921 to form the Imperial Bank of India, which later became the State Bank of India. The document outlines SBI's key business areas including national banking, international banking, corporate banking, and treasury operations. It also provides details on SBI's management, shareholding, and the historical business activities of the original presidency banks in India.
The document provides an overview of the State Bank of India (SBI), the largest banking and financial services company in India. It traces SBI's origins back to 1806 with the establishment of the Bank of Calcutta. Through later mergers and acquisitions, including the nationalization of the Imperial Bank of India in 1955, SBI became the predominant commercial bank in India. Today SBI has over 16,000 branches across India and overseas, making it the largest banking network in the country. The document outlines SBI's vision, products and services, leadership structure, subsidiaries, and position as one of the largest banks in the world.
The document summarizes the evolution of the Indian banking sector from the pre-1950 period to the present day. It discusses the foundational phase in the 1950s-1970s, the expansion phase in the 1970s-1980s following nationalization, the consolidation phase of the 1980s-1990s, and the ongoing reformatory phase since liberalization. It outlines the performance improvements seen in the sector as well as ongoing challenges around infrastructure, technology, skills, and competition in a changing market. Overall the banking sector has strengthened but continues transforming to meet new demands.
This document is a project report on analyzing the banking sector in India, specifically focusing on State Bank of India. It includes an introduction to SBI covering its history, vision, board of directors, and awards. It also describes the research methodology used and provides an index of topics to be covered on SBI and another public sector bank. Finally, it contains declarations by the student and their guide certifying the original work. In summary, this document presents a student's research project on analyzing State Bank of India and another public sector bank in India for an MBA program.
This document discusses various techniques of financial analysis used to analyze financial statements, including ratio analysis. It provides background on ratio analysis and defines key financial ratios such as current ratio, quick ratio, debt equity ratio, proprietary ratio, net profit ratio, and capital turnover ratio. Ratio analysis of Punjab National Bank from 2011-2015 is then presented, calculating and interpreting various ratios to analyze the bank's financial performance and position over those years. The ratios indicate the bank has maintained strong liquidity and an increasing equity position over time.
The PNB fraud was discovered in January 2018 when PNB reported unauthorised transactions of $1.77 billion by jeweller Nirav Modi and his uncle Mehul Choksi. Nirav Modi used fraudulent Letters of Undertaking from PNB's Brady House branch in Mumbai to obtain loans from other Indian banks to fund his businesses. An investigation revealed PNB employees bypassed internal controls to issue these LOUs without collateral over several years. The fraud greatly impacted PNB's finances and reputation, and investigations are ongoing into individuals involved both within and outside the bank.
This document provides an introduction and overview of a report comparing the non-performing asset (NPA) scenarios of public sector banks (SBI) and private sector banks (HDFC) in India. It includes the report title, authors, department/university, table of contents listing chapters on the banking structure in India, company profiles of SBI and HDFC, data analysis and conclusions. The introduction discusses the banking system in India and provides background on bank nationalization, the Reserve Bank of India, and the Indian Banks' Association.
The document discusses payment banks in India. Payment banks are a new type of bank allowed by the Reserve Bank of India to promote financial inclusion through basic banking services delivered mainly via mobile phones. In 2015, 11 entities received in-principle approval to start payment banks, including telecom and retail companies. Payment banks have restrictions on services but can accept deposits up to Rs. 1 lakh per account. They are expected to increase access to banking, lower costs, and change how ordinary Indians use banking.
Credit risk @ sbi project report mba financeBabasab Patil
This document provides an executive summary and background of a project on credit risk management at State Bank of India. The objectives are to study the bank's structure, credit rating procedures, risk management activities, and regulatory guidelines. The methodology includes collecting primary data through interviews and secondary data from publications. Key findings are that SBI sanctions less agricultural credit than competitors and has effective risk management. Recommendations include revising credit policies, lowering interest rates, and increasing agricultural lending. The conclusion is that the project increased knowledge of credit policies and risk management.
The document provides an overview of the banking industry in India. It discusses key points:
- The Reserve Bank of India (RBI) acts as the central bank and regulates monetary policy, banking supervision, foreign exchange and more.
- India has a multi-tiered banking structure including retail banking for consumers, international banking, and wholesale banking for large corporations.
- Banks in India must follow regulations around capital requirements, priority sector lending targets, and controlling non-performing assets.
- Performance is measured using metrics like capital adequacy, asset quality, management efficiency, earnings quality, and more.
The document discusses a project report submitted by Parneet Kaur for her MBA degree from Punjab Technical University. The report examines non-performing assets at the State Bank of Patiala branch in Bhadaur from June-July 2010. It includes certificates, declarations, prefaces, and outlines covering various chapters on concepts of NPAs, their impact on banks, prevention and management of NPAs, and research methodology.
A comparative analysis of public and private sector banks in indiaAlexander Decker
This document discusses a study comparing customer satisfaction levels between public and private sector banks in India. It provides background on the banking industry and importance of customer satisfaction. The study was conducted through a survey of 160 bank customers in Chandigarh city. Statistical tests were used to analyze differences in customer perceptions of service quality between public and private banks. The results showed that private sector banks placed more emphasis on relationship building and had better infrastructure, leading to higher levels of customer satisfaction compared to public sector banks.
This project report has been prepared as per the requirement of the syllabus of
MBA course structure under which the students are the required to undertake
project.
It was a first hand experience for us as that we were exposed to the professional
set-up and were facing the market, which was really a great experience.
During project period, I had very touching experiences. When business is involved,
experiences counts a lot, as we know, experience are an instrument, which leads
towards success.
State Bank of India (SBI) is India's largest bank. It was founded in 1806 and is majority owned by the government of India. SBI has over 17,000 branches across India and internationally. The document discusses SBI's strategic evolution over time in response to changes in ownership, governance, business processes, and structures. It analyzes SBI's competitors, products, marketing mix, SWOT analysis, and external environment using PEST and Porter's Five Forces frameworks. The analysis identifies SBI as the market leader and a "cash cow" given its continued growth and profitability.
summer internship report on digital banking (Punjab & Sind Bank)sharda university
i had completed my 2 month summer internship report from punjab and sind bank on digital banking and digital services provided by the bank to the customers time duration is 20 june 2018 to 20 august 2018
This document appears to be a capstone project report submitted as a partial requirement for a Master's degree in Business Administration. The report focuses on studying non-performing assets in the Indian private banking sector. It includes chapters on introduction, literature review, research methodology, data analysis, findings, suggestions and conclusions. The introduction provides background on banking sector reforms in India and defines key terms like non-performing assets, different types of banks and beneficiaries of the study. The literature review summarizes past research on causes of bank failures and levels of non-performing loans. The document appears to analyze non-performing assets of private banks in India and provides recommendations.
This document discusses rural banking in India. It provides an overview of the current state of rural banking, including key challenges such as low penetration rates and average account values compared to urban areas. Access to rural banking is limited by infrastructure issues, physical distance to branches, and regulatory constraints. Usage is also constrained by social factors like illiteracy and high transaction costs. Overall, the document analyzes the opportunities and barriers to improving access to financial services for rural customers in India.
Comparitive analysis of sbi bank and icici bankshweta248001
This document provides details of a research project comparing the e-banking services of State Bank of India and ICICI Bank. It includes an introduction, company profiles of both banks, descriptions of their e-banking services, and outlines the research methodology used in the study. The project was conducted to fulfill requirements for a Bachelor's degree in business administration with a focus on finance.
Credit appraisal in sbi bank project6 report Babasab Patil
The document discusses the banking sector in India. It notes that the Reserve Bank of India closely monitors the financial sector, which is dominated by scheduled commercial banks including public, private, foreign, and regional rural banks. It then focuses on providing details about the State Bank of India, noting that it is the largest bank in India with over 8,500 branches and that it is undergoing changes to modernize and expand its services to compete better. The document also provides a brief overview of the classification and reforms of the banking system in India.
The document discusses reforms needed for India's financial system. It notes that India's financial system is underdeveloped but its economy has made progress. Key steps discussed to mobilize funds more effectively include: increasing bank penetration in India by reducing dormant accounts and encouraging debit card usage; reducing the cost of bank intermediation by improving property rights and contract enforcement; lowering the fiscal deficit by cutting government spending or increasing taxes; and developing capital markets through investor education, innovative products, and encouraging domestic institutional investment. Overall the recommendations are for India to capture more savings, privatize industries, reduce subsidies, improve tax collection, and create a more organized business environment to strengthen its financial system.
ICICI Bank Personal Loan can be made use for any kind of work that may include the renovation of your house, planning your holidays, purchasing a consumer durable, for education purposes, for a wedding in family. Personal loans can be availed at a fixed rate of Interest, which is charged on monthly reducing basis.
This document provides an overview of the history and operations of State Bank of India. It discusses how SBI originated from three presidency banks (Bank of Bengal, Bank of Bombay, and Bank of Madras) established in the early 19th century in India. These banks amalgamated in 1921 to form the Imperial Bank of India, which later became the State Bank of India. The document outlines SBI's key business areas including national banking, international banking, corporate banking, and treasury operations. It also provides details on SBI's management, shareholding, and the historical business activities of the original presidency banks in India.
The document provides an overview of the State Bank of India (SBI), the largest banking and financial services company in India. It traces SBI's origins back to 1806 with the establishment of the Bank of Calcutta. Through later mergers and acquisitions, including the nationalization of the Imperial Bank of India in 1955, SBI became the predominant commercial bank in India. Today SBI has over 16,000 branches across India and overseas, making it the largest banking network in the country. The document outlines SBI's vision, products and services, leadership structure, subsidiaries, and position as one of the largest banks in the world.
The document summarizes the evolution of the Indian banking sector from the pre-1950 period to the present day. It discusses the foundational phase in the 1950s-1970s, the expansion phase in the 1970s-1980s following nationalization, the consolidation phase of the 1980s-1990s, and the ongoing reformatory phase since liberalization. It outlines the performance improvements seen in the sector as well as ongoing challenges around infrastructure, technology, skills, and competition in a changing market. Overall the banking sector has strengthened but continues transforming to meet new demands.
This document is a project report on analyzing the banking sector in India, specifically focusing on State Bank of India. It includes an introduction to SBI covering its history, vision, board of directors, and awards. It also describes the research methodology used and provides an index of topics to be covered on SBI and another public sector bank. Finally, it contains declarations by the student and their guide certifying the original work. In summary, this document presents a student's research project on analyzing State Bank of India and another public sector bank in India for an MBA program.
This document discusses various techniques of financial analysis used to analyze financial statements, including ratio analysis. It provides background on ratio analysis and defines key financial ratios such as current ratio, quick ratio, debt equity ratio, proprietary ratio, net profit ratio, and capital turnover ratio. Ratio analysis of Punjab National Bank from 2011-2015 is then presented, calculating and interpreting various ratios to analyze the bank's financial performance and position over those years. The ratios indicate the bank has maintained strong liquidity and an increasing equity position over time.
The PNB fraud was discovered in January 2018 when PNB reported unauthorised transactions of $1.77 billion by jeweller Nirav Modi and his uncle Mehul Choksi. Nirav Modi used fraudulent Letters of Undertaking from PNB's Brady House branch in Mumbai to obtain loans from other Indian banks to fund his businesses. An investigation revealed PNB employees bypassed internal controls to issue these LOUs without collateral over several years. The fraud greatly impacted PNB's finances and reputation, and investigations are ongoing into individuals involved both within and outside the bank.
This document provides an introduction and overview of a report comparing the non-performing asset (NPA) scenarios of public sector banks (SBI) and private sector banks (HDFC) in India. It includes the report title, authors, department/university, table of contents listing chapters on the banking structure in India, company profiles of SBI and HDFC, data analysis and conclusions. The introduction discusses the banking system in India and provides background on bank nationalization, the Reserve Bank of India, and the Indian Banks' Association.
The document discusses payment banks in India. Payment banks are a new type of bank allowed by the Reserve Bank of India to promote financial inclusion through basic banking services delivered mainly via mobile phones. In 2015, 11 entities received in-principle approval to start payment banks, including telecom and retail companies. Payment banks have restrictions on services but can accept deposits up to Rs. 1 lakh per account. They are expected to increase access to banking, lower costs, and change how ordinary Indians use banking.
Credit risk @ sbi project report mba financeBabasab Patil
This document provides an executive summary and background of a project on credit risk management at State Bank of India. The objectives are to study the bank's structure, credit rating procedures, risk management activities, and regulatory guidelines. The methodology includes collecting primary data through interviews and secondary data from publications. Key findings are that SBI sanctions less agricultural credit than competitors and has effective risk management. Recommendations include revising credit policies, lowering interest rates, and increasing agricultural lending. The conclusion is that the project increased knowledge of credit policies and risk management.
The document provides an overview of the banking industry in India. It discusses key points:
- The Reserve Bank of India (RBI) acts as the central bank and regulates monetary policy, banking supervision, foreign exchange and more.
- India has a multi-tiered banking structure including retail banking for consumers, international banking, and wholesale banking for large corporations.
- Banks in India must follow regulations around capital requirements, priority sector lending targets, and controlling non-performing assets.
- Performance is measured using metrics like capital adequacy, asset quality, management efficiency, earnings quality, and more.
The document discusses a project report submitted by Parneet Kaur for her MBA degree from Punjab Technical University. The report examines non-performing assets at the State Bank of Patiala branch in Bhadaur from June-July 2010. It includes certificates, declarations, prefaces, and outlines covering various chapters on concepts of NPAs, their impact on banks, prevention and management of NPAs, and research methodology.
A comparative analysis of public and private sector banks in indiaAlexander Decker
This document discusses a study comparing customer satisfaction levels between public and private sector banks in India. It provides background on the banking industry and importance of customer satisfaction. The study was conducted through a survey of 160 bank customers in Chandigarh city. Statistical tests were used to analyze differences in customer perceptions of service quality between public and private banks. The results showed that private sector banks placed more emphasis on relationship building and had better infrastructure, leading to higher levels of customer satisfaction compared to public sector banks.
This project report has been prepared as per the requirement of the syllabus of
MBA course structure under which the students are the required to undertake
project.
It was a first hand experience for us as that we were exposed to the professional
set-up and were facing the market, which was really a great experience.
During project period, I had very touching experiences. When business is involved,
experiences counts a lot, as we know, experience are an instrument, which leads
towards success.
State Bank of India (SBI) is India's largest bank. It was founded in 1806 and is majority owned by the government of India. SBI has over 17,000 branches across India and internationally. The document discusses SBI's strategic evolution over time in response to changes in ownership, governance, business processes, and structures. It analyzes SBI's competitors, products, marketing mix, SWOT analysis, and external environment using PEST and Porter's Five Forces frameworks. The analysis identifies SBI as the market leader and a "cash cow" given its continued growth and profitability.
summer internship report on digital banking (Punjab & Sind Bank)sharda university
i had completed my 2 month summer internship report from punjab and sind bank on digital banking and digital services provided by the bank to the customers time duration is 20 june 2018 to 20 august 2018
This document appears to be a capstone project report submitted as a partial requirement for a Master's degree in Business Administration. The report focuses on studying non-performing assets in the Indian private banking sector. It includes chapters on introduction, literature review, research methodology, data analysis, findings, suggestions and conclusions. The introduction provides background on banking sector reforms in India and defines key terms like non-performing assets, different types of banks and beneficiaries of the study. The literature review summarizes past research on causes of bank failures and levels of non-performing loans. The document appears to analyze non-performing assets of private banks in India and provides recommendations.
This document discusses rural banking in India. It provides an overview of the current state of rural banking, including key challenges such as low penetration rates and average account values compared to urban areas. Access to rural banking is limited by infrastructure issues, physical distance to branches, and regulatory constraints. Usage is also constrained by social factors like illiteracy and high transaction costs. Overall, the document analyzes the opportunities and barriers to improving access to financial services for rural customers in India.
Comparitive analysis of sbi bank and icici bankshweta248001
This document provides details of a research project comparing the e-banking services of State Bank of India and ICICI Bank. It includes an introduction, company profiles of both banks, descriptions of their e-banking services, and outlines the research methodology used in the study. The project was conducted to fulfill requirements for a Bachelor's degree in business administration with a focus on finance.
Credit appraisal in sbi bank project6 report Babasab Patil
The document discusses the banking sector in India. It notes that the Reserve Bank of India closely monitors the financial sector, which is dominated by scheduled commercial banks including public, private, foreign, and regional rural banks. It then focuses on providing details about the State Bank of India, noting that it is the largest bank in India with over 8,500 branches and that it is undergoing changes to modernize and expand its services to compete better. The document also provides a brief overview of the classification and reforms of the banking system in India.
The document discusses strengthening small and medium-sized enterprise (SME) financing in Europe through capital markets and public financial institutions. It notes that capital market financing for SMEs is underdeveloped in Europe compared to the US due to lack of market infrastructure, limited SME participation, and insufficient investor supply. The document outlines policy actions needed to develop market infrastructure, boost SME demand, and increase investor participation. It also discusses the potential role of public financial institutions in streamlining resources to increase financing availability and awareness for SMEs.
ICICI Bank is India's second largest bank that utilizes new technologies like smart cards, internet banking, and mobile banking to better serve small and medium enterprises. The document discusses financing options for SMEs throughout their lifecycle from startups needing seed funding to mature businesses accessing public debt markets. It also analyzes constraints that SMEs and banks face in financing and provides recommendations like dedicated institutions and fiscal benefits to increase technology financing for SMEs.
This document provides an overview of fundraising for small and medium enterprises (SMEs) and mid-corporate sectors in India. It discusses the importance of SMEs and mid-corporates for economic growth as they contribute significantly to output, exports, employment and innovation. However, SMEs face issues in accessing adequate and affordable financing due to perceptions of higher risk by lenders. The role of chartered accountants is discussed in assisting SMEs to prepare comprehensive project reports and financial plans to better present proposals and negotiate terms when seeking funds from financial institutions.
This document provides a project report on fundamental analysis of the banking sector in India submitted by Leslie Sequeira to Don Bosco Institute of Management and Research. The report includes an introduction to the history of banking in India from 1786 to the present, which is divided into three phases. It also outlines the research methodology, includes an index of contents, and covers data collection, analysis and interpretation of the banking sector. The main purpose is to understand and interpret factors affecting the banking sector in India through fundamental analysis.
The document provides an overview of nationalized and private banks in India with respect to loan processes and facilities for small and medium enterprises (SMEs). It discusses the history of banking in India and the current state of nationalized and private banks. Data is presented on SME industry breakdown, market share and capital of major nationalized and private banks, and an analysis of a questionnaire completed by SMEs regarding their preferences and experiences with various banks. The document also includes SWOT analyses of State Bank of India and ICICI Bank. It examines loan documentation requirements, interest rates, guarantees, processing times and other policies of several nationalized and private banks. Current trends in SME lending and key indicators for financing SMEs are
This document lists various entrepreneurship support programs offered by major commercial banks in India, including the Small Industries Development Bank of India (SIDBI), Housing Development Finance Corporation (HDFC), Industrial Credit and Investment Corporation of India (ICICI), Industrial Development Bank of India (IDBI), Allahabad Bank, and State Bank of India. It provides brief descriptions of financing schemes, loans, and other initiatives supported by each bank to promote small and medium enterprises.
A dessertation report of market research on financial consultant for hdfcslic...Projects Kart
The document provides an overview of HDFC Standard Life Insurance and its formation through a joint venture between Housing Development Finance Corporation and Standard Life. It discusses HDFC Standard Life's product scope, covering both individual and group insurance solutions. The company aims to mirror the success of its parent companies and be a leader in the Indian life insurance industry through ethical practices and financial strength.
Project report on fundamental analysis of scrips under banking sectoraftabshaikh04
This project report analyzes scrips under the banking sector in India. It provides an overview of SHCIL, including its subsidiaries and services offered. It then discusses the fundamentals of financial analysis, tools used including ratios and technical analysis. The report outlines the problem statement, objectives, methodology used and limitations. It performs analysis of the economy, banking industry and selected public and private sector banks. Key findings are that SBI is fairly valued based on P/E, PNB is undervalued, and HDFC Bank has highest expected future growth. All banks maintained capital requirements and SBI had the highest book value. Recommendations are to buy all banks except SBI and ICICI Bank.
State Bank of India (SBI) is India's largest bank with over 14,000 branches and 32,000 ATMs. It was established in 1955 and nationalized in 1969. SBI has a large domestic and international presence with over 180 overseas offices. Some key points:
- Deposits have risen to Rs. 12 trillion with 15% annual growth, while advances crossed Rs. 10 trillion with 21% growth.
- It has expanded its branch network by 719 branches to a total of 14,816 branches, with 66% located in rural/semi-urban areas.
- SBI has subsidiaries in Canada, California, and several other countries around the world.
- Major
Impact Of Advertisement In The Promotion Of Retail Outletpraveenkumar2421
Here are the key findings from the survey:
- Big Bazaar was the most frequently visited retail outlet, with 35% of respondents saying they visit it often. Vishal Megamart and Reliance Fresh were also popular, each getting around 20% of the votes.
- When asked what influences their choice of retail outlet, over 50% of respondents said promotional offers and discounts were the top factor. Store ambiance and availability of products were also important factors according to around 30% of people.
- Television advertising had the highest reach among respondents, with 85% saying they have seen ads for retail outlets on TV. Print ads were also effective, with 70% noticing ads in newspapers/magazines. Outdoor ads and
A STUDY ON FUNDAMENTAL ANALYSIS OF BANKING SECTOR (WITH SPECIAL REFERENCE TO ...IAEME Publication
The study consist of fundamental analysis so it focuses on the overall state of the economy, and considers factors including interest rates, production, earnings, employment, GDP, housing, manufacturing and management. When analyzing a stock, futures contract, or currency using fundamental analysis there are two basic approaches one can use: bottom up analysis and top down analysis. So the researcher gives the problem as A study on fundamental analysis of banking sector with special reference to public sector banks. The main objective is to study the fundamental analysis of three banks which Punjab National Bank (PNB), Bank of Baroda (BOB) and State Bank of India (SBI).
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If any have Need Project Report please call +919011888598 and i will provide only Word File.
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Comparison of SME financing services provided by SBI and ICICI
1. 2009
A Report on
Comparative Study of SME Financing Services Provided By
Nationalised and Private Sector Bank.
Submitted By
Shekhani Mohamed Vasim W.
Opulence Business Solutions Pvt. Ltd. 08BS0001577
43, World Business House,
Above IndusInd Bank, Nr. Parimal Garden, Date of Submission: 16/05/2009
C. G. Road, Ahmedabad – 380 009
E-Mail: opportunities.opulence@gmail.com
Website: www.opulencebiz.com
1|Page Shekhani Vasim 08BS0001577
2. A REPORT
ON
COMPARATIVE STUDY OF SME FINANCING
SERVICES PROVIDED BY NATIONALISED AND
PRIVATE SECTOR BANK.
By
Shekhani Mohamed Vasim Md. Wahid
Opulence Business Solutions Pvt. Ltd.
43, World Business House,
Above IndusInd Bank, Nr. Parimal Garden,
C. G. Road, Ahmedabad – 380 009
E-Mail: info@opulencebiz.com
Website: www.opulencebiz.com
Submitted to:
Dr. Himani Joshi
IBS, Ahmedabad
Date of Submission: 16/05/2009
2|Page Shekhani Vasim 08BS0001577
3. Preface
As a part of my course curriculum of MBA in summer Internship program, we are
assigned some practical studies as well as the theoretical knowledge in the related
areas for completing the project. I am preparing comprehensive report on
COMPARATIVE STUDY OF SME FINANCING SERVICES PROVIDED
BY NATIONALISED AND PRIVATE SECTOR BANK.
The basic idea of assignment of this project is to augment the knowledge of
students about the SME finance and its various sources. It is concerned with
finding the appropriate source of finance that can be used as per the requirement of
the SME belonging to a particular sector. This will not only help students, but to a
large extent it will help the company it taking the decision to as to which source of
finance should be used for a particular SME. This makes the students enhance their
analytical capability.
So far as decision of the industry or this sector is concerned, I have chosen the
financial consulting firm. This project will also give me firm understanding about
the various aspect of SME finance and the various means of raising the finance. I
have gained lots of knowledge from this project. And I believe that this will help
me in the near future.
3|Page Shekhani Vasim 08BS0001577
4. Acknowledgement
I would like to express our immense gratitude to mentor guide Mr. BHAVESH
PATEL (CMD, Opulence Business Solution Pvt. Ltd), Mr. EDWARD MACWAN
(Vice President, Opulence Business Solution Pvt. Ltd) and Mr. SANKET JOSHI
(Associate Vice President, Opulence Business Solution Pvt. Ltd) for imparting
valuable support, encouragement, guidance and immense knowledge throughout
the project.
I am also very thankful to all the staff members of Opulence Business Solution Pvt.
Ltd Ahmedabad, Mr. Pratik Pandya, Ms. Harni, and Mr. Vikash Mehta who guided
me and provided their support whenever needed.
I am thankful to my faculty members Dr. HIMANI JOSHI for guiding my way
throughout this project and clarifying all my confusions. Apart from that he helped
me in finding my path and how to go about the project and provided me right input
whenever needed.
Last not the least I would like to thank my parents without whose kind, support and
love I could not have undergone the project smoothly. I am thankful to my friends
and our seniors without whose cooperation and guidance would not have been
completely successfully.
I think all those who knowingly and unknowingly who have helped me in the
fulfillment of this project.
4|Page Shekhani Vasim 08BS0001577
5. Company Profile
A brief Introduction
We and our business partner are pleased to present our credentials as a full service
Merchant Bank, Investment Bank, Brokerage House & Financial Services
Company with presence in Mumbai as well. Our Partner (RBI registered) and its
subsidiary (SEBI registered) are together a full service Investment Bank, Merchant
Bank and “Institutional” Stock Broking company with membership in NSE & BSE
and Depository services, providing a wide range of Financial Services to over 500
large and mid-cap companies and thousands of retail clients all over India since
1994.
Our Board consists of eminent legal and finance professionals who have gained
their experience by working with leading Banks and Financial Advisory
Institutions of India and abroad expertise in Financial Services, Capital Market,
and Investment Banking.
The range of SERVICES provided by us includes:
Corporate Finance
Secured/Unsecured Term Loans
Working Capital Finance
Secured/Unsecured Term Loans
Working Capital Finance
ECB/FCNR(B) Facilities
Placement of Debentures & Bonds
Project Funding – Equity & Loans
Financial structuring
Trade Finance
Investment Banking
Corporate Advisory Services
Mergers and Acquisitions
Private Equity Placement
Joint Venture Partner Search
Equity share and business valuations
5|Page Shekhani Vasim 08BS0001577
6. Merchant Banking
Initial Public Offers and Follow on shares
Right Issues
Buybacks
Open Offers
Preferential allotments
ESOP certification
BSE listing of companies listed on Regional Stock Exchanges
Delisting of Securities
Corporate Restructuring
To unlock value in the businesses
To comply with Regulatory requirements
To hive off noncore businesses
To streamline operations of the Group in similar activities
Family Settlement / Re-arrangement
Due Diligence
Finance & Accounting
Direct Taxes
Indirect Taxes
Legal Service
Valuation
Business/Division Valuation
Brand Valuation
Valuation of Equity Shares
Employee Share based compensation Valuation
Impairment of Assets (Technical Valuation)
Valuation of Financial Instruments
Purchase Price Allocation
Fairness Opinion
Other Intangibles – License / Copyrights / trademarks / technology
6|Page Shekhani Vasim 08BS0001577
7. Contents
Preface .......................................................................................................................................................... 3
Acknowledgement ........................................................................................................................................ 4
Company Profile ........................................................................................................................................... 5
1. Introduction ........................................................................................................................................... 9
1.1. Purpose & Scope ........................................................................................................................... 9
1.2. Methodology & Sources ............................................................................................................... 9
1.3. Limitation.................................................................................................................................... 10
2. A Brief profile of SMEs in India ........................................................................................................ 11
2.1 Importance of SMEs ......................................................................................................................... 11
2.2 Definition of SME............................................................................................................................. 12
2.3 What Constitutes the SME Sector ..................................................................................................... 12
2.4 SMEs in India ................................................................................................................................... 14
2.4.1 Micro, Small and Medium Enterprise Sector: Profile ................................................................ 14
2.5 Challenges Faced by the SME Sector ............................................................................................... 16
2.6 Various ways of Financing SMEs..................................................................................................... 17
3. SME Services Provided by State Bank of India.................................................................................. 23
3.1 Steps for SME loans by State Bank of India (SBI) ........................................................................... 24
3.2 Credit Appraisal By banks ................................................................................................................ 26
3.3 SME Financing Schemes by SBI ...................................................................................................... 27
3.3.1 Open term Loan ......................................................................................................................... 27
3.3.2 School Plus................................................................................................................................. 28
3.3.3 Paryatan Plus .............................................................................................................................. 29
3.3.4 Transport Plus ............................................................................................................................ 31
3.3.5 Doctor Plus................................................................................................................................. 32
3.3.6 SBI Shoppe ................................................................................................................................ 34
7|Page Shekhani Vasim 08BS0001577
8. 3.3.7 Dental Doctor Plus ..................................................................................................................... 35
3.3.8 Cyber Plus .................................................................................................................................. 37
3.3.9 Rice Mill Plus ............................................................................................................................ 38
3.3.10 Rice Mill Plus .......................................................................................................................... 40
4. SME Services Provided by ICICI Bank .............................................................................................. 41
4.1 Steps for SME loans by ICICI bank.................................................................................................. 42
4.2 SME Financing schemes by ICICI bank for various sectors ............................................................ 44
4.2.1. Automotive Sector .................................................................................................................... 44
4.2.2. Construction Sector ................................................................................................................... 45
4.2.3. Pharmaceutical Sector ............................................................................................................... 46
4.2.4. Apparel Sector .......................................................................................................................... 47
4.2.5. Transport Sector ........................................................................................................................ 48
4.2.6. Gems & Jewelry Sector............................................................................................................. 49
4.2.7. Travel and Tourism Sector ........................................................................................................ 50
4.2.8. Education Sector ....................................................................................................................... 52
4.2.9. Medical Sector .......................................................................................................................... 53
4.2.10. Climate Change Initiative ....................................................................................................... 54
5. Sector wise comparison of SME financing services ........................................................................... 55
Conclusion .................................................................................................................................................. 69
References ................................................................................................................................................... 70
8|Page Shekhani Vasim 08BS0001577
9. 1. Introduction
1.1. Purpose & Scope
The Purpose of carrying out this project is to identify the best source of SME
financing schemes provided by Nationalized and Private Banks in different sectors.
Every Financial consultancy firm like us (Opulence) wants that its client gets the
best deal so this survey will be an important tool for financing needs of every SME
client. More specifically I will concentrate mainly on SME financing schemes
provided by State Bank of India (SBI) and ICICI bank. As we know that SME
form the backbone of any economy and SME are vital for growth of developing
countries like India so financing of SME is considered to be very important issue
for any economy. Because of this reason most of the banks, may it be nationalized
banks likes SBI or Private sector banks like ICICI, all are bringing different
schemes for SME finance, but out of these various schemes which scheme is more
profitable and suitable for a SME is the main question of concern for every SME.
1.2. Methodology & Sources
Following are the series of steps which will be followed during execution of the
project.
In the early phase of the project I will try to know about the various schemes of
SME financing which are introduced by various banks.
After having the knowledge about various schemes prevailing in the market by
various banks, I will focus more on schemes provided by SBI and ICICI for
SMEs.
I will then collect details about these schemes provided by each bank one by
one by visiting the corresponding banks and having interaction with the
representative of that bank. I will collect details like amount of loan available,
Interest rate, Disbursement period, Repayment period, Eligibility criteria,
Security required etc.
Now after collecting information regarding different schemes of SME finance
by various banks, I will focus on sectors one by one. Like I will take one sector
for e.g. medical , then I will compare schemes for SME provided by various
banks and conclude that if a SME belonging to a medical sector wants finance
9|Page Shekhani Vasim 08BS0001577
10. then financing scheme of which bank is better for it. Similarly I will cover
different sectors like Tourism, Transport, Medical, Agriculture etc. The
comparison will be on the basis of the following factors:
Rate of Interest
Disbursement Period
Repayment Period
Eligibility criteria
Security/collateral etc.
Basically my aim will be to compare SME financing schemes provided by SBI
and ICICI more specifically, but for some sector it happens that in a particular
sector SBI provides financing but ICICI has introduced any scheme in such
case I will try to compare it with some other bank’s SME service.
For collection of data I will go to the banks and ask them mu queries to their
representative out there. I will explore the website of the banks to collect the
data.
1.3. Limitation
Some of the limitations of the project can be:
Generally the data on the websites of the banks are not fully disclosed i.e. other
than the charges mentioned on the website there are many hidden charges
which increases the cost like service charge etc.
In case of interaction with the representative of a particular bank it happens
many a time that the representative cannot disclose all the data because of
certain reasons like banks privacy policy etc. thus getting clear picture about the
service provided is not possible.
I will try to overcome the above mentioned limitations as far as possible.
10 | P a g e Shekhani Vasim 08BS0001577
11. 2. A Brief profile of SMEs in India
2.1 Importance of SMEs
Small and medium-sized enterprises (SMEs) are the backbone of all economies
and are a key source of economic growth, dynamism and flexibility in advanced
industrialized countries, as well as in emerging and developing economies. SMEs
constitute the dominant form of business organization, accounting for over 95%
and up to 99% of enterprises depending on the country. They are responsible for
between 60-70% net job creations in Developing countries. Small businesses are
particularly important for bringing innovative products or techniques to the market.
Microsoft may be a software giant today, but it started off in typical SME fashion,
as a dream developed by a young student with the help of family and friends. Only
when Bill Gates and his colleagues had a saleable product were they able to take it
to the marketplace and look for investment from more traditional sources
SMEs are vital for economic growth and development in both industrialized and
developing countries, by playing a key role in creating new jobs. Financing is
necessary to help them set up and expand their operations, develop new products,
and invest in new staff or production facilities. Many small businesses start out as
an idea from one or two people, who invest their own money and probably turn to
family and friends for financial help in return for a share in the business. But if
they are successful, there comes a time for all developing SMEs when they need
new investment to expand or innovate further. That is where they often run into
problems, because they find it much harder than larger businesses to obtain
financing from banks, capital markets or other suppliers of credit.
11 | P a g e Shekhani Vasim 08BS0001577
12. 2.2 Definition of SME
Units in Small and Medium Enterprises (SME) Sector will include all units in
tiny and Small Scale industrial (SSI) sector and also those industrial units whose
investment in plant and machinery is up to INR 100 million. Accordingly, only
those units in the SME sector as per definition of RBI (defined in RPCD Circular
No. RPCD.PLFNS.BC. 31/ 06.02.31/ 2005-06 dated August 19, 2005)
2.3 What Constitutes the SME Sector
It is rather difficult to define precisely as to what constitutes the SME sector, as
a. It covers a wide spectrum of activities ranging from manufacturing to trade
to services.
b. It involves different types of organizations with varying constitutions like
proprietary concerns, partnership firms, private limited companies, public limited
companies.
c. Regulations/ Govt. Policy guidelines varies from activity to activity.
d. It overlaps with the presently defined Priority Sector.
12 | P a g e Shekhani Vasim 08BS0001577
13. In the given scenario, it can be broadly said that the SME segment would
include the following
Traders (Wholesale & Retail) Manufacturers Services
Small Owners
Examples
Mom & Pop Stores
Small Producers
Cash 'n' Carry
Retail Merchants Wholesale Manufacturers Service Providers
Traders
Examples Examples Examples Examples
Convenience Export- Light Industries Agencies
Stores Importers Processing Consulting
Wholesalers Companies Services
Personal
Services
Restaurants
Travel &
Tourism
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14. 2.4 SMEs in India
2.4.1 Micro, Small and Medium Enterprise Sector: Profile
SMEs by Geographical Regions (in %)
SMEs by Geographical Regions
East
11%
South West
43% 23%
North
23%
14 | P a g e Shekhani Vasim 08BS0001577
15. SMEs by size
Medium
5%
Micro
43%
Small
52%
Of the 1150 micro, small and medium enterprises evaluated by SMERA 43% are located in
South India and 52% are Micro in size
Source: SMERA Newsletter
Performance of Micro and Small Enterprises
Year No. of Units Production Employmen Export
(in Lakhs) (Rs Crs.) t s
Regd Unreg Total At At (in Lakhs) (Rs.
Current Constant Crs.)
Prices Prices
2004-05 17.53 101.06 118.59 418263 251511 282.57 124417
2005-06 18.71 104.71 123.42 476201 277668 294.91 N.A.
2006-07 497840
2007-08 587200
Source: Development Commissioner (SSI)
Annual flow of Credit 2006-07
Indicators MSEs( former SSIs) MSME sector
Public Sector Banks $5.4 Billion $9.5 Billion
Other banks (private
/foreign banks, SIDBI etc.) $2.4 Billion $3.5 Billion
Emerging Sources (PV, - $3.0 Billion*
VC, ECBs, etc.)
Total $7.8 Billion $ 12 Billion
*Estimates based on certain broad assumptions, Exchange rate 40 INR = 1$
15 | P a g e Shekhani Vasim 08BS0001577
16. 2.5 Challenges Faced by the SME Sector
Mentoring & Advocacy
Credit/Financing
Technology
Information about Technology
Actual procurement of technology
Finance for Technology up gradation
Market Access
Infrastructure
Procedures
Exit Mechanism
Strategy Interventions for Revitalization and Growth
Reasons attributed to sickness of SMEs
80
70
60
50
40
30
20
10
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Source: Sickness and Rehabilitation of MSMEs in India, Milagrow Business and
knowledge Solutions
16 | P a g e Shekhani Vasim 08BS0001577
17. 2.6 Various ways of Financing SMEs
Government
Specialized
Investment
Banks for SMEs &
Assistance
Loans and Equity
Leasing Companies
Loans SMEs
Private Financial Lease
Institutions
e.g.
Banks
Finance Companies
Equity
Venture Capitalists
17 | P a g e Shekhani Vasim 08BS0001577
18. This graph shows the various ways of financing for SMEs in various stages of their
life cycle. The valley of death spreads its shadows to other stages of the life cycle
also. Growing companies, especially ones that invest in capital need not only term
loans but also more working capital.
Most common sources for Finance for MSMEs
18 | P a g e Shekhani Vasim 08BS0001577
19. Thus it is clear that the most common source of finance for SMEs is Bank
Financing. There are a no. of banks who help in assisting the SMEs for financing.
The main channel used by the SMEs via Banks is Specialized loans by various
Banks.
The Main reason for chosing bank loans by SMEs compared to other sources
of financing like venture capital, PE funding etc is ther is only interest to be paid
no stake is to be diluted thus the whole command oof the SME is with the owner
only.
There are a number of Private as well as Public sector banks who assist SME in
Financing
Some Banks Offering Financial Assistance to SMEs
Allahabad Bank www.allahabadbank.com
Andhra Bank www.andhrabank-india.com
Bank of India www.bankofindia.com
Bank of Baroda www.bankofbaroda.com
Bank of Maharashtra www.maharashtrabank.com
Canara Bank www.canbankindia.com
Central Bank of India www.centralbankofindia.co.in
Corporation Bank www.corpbank.com
Dena bank www.denabank.com
ICICI Bank www.icicibank.com
Indian Bank www.indian-bank.com
Indian Overseas Bank www.iob.com
IndusInd Bank Ltd. www.indusind.com
The Jammu & Kashmir Bank Ltd. www.jkbank.net
Punjab National Bank www.pnbindia.com
Syndicate Bank www.syndicatebank.com
State Bank of Travancore www.statebankoftravancore.com
State Bank of India Group www.sbi.co.in
Small Industry Development Bank of www.sidbi.com
India (SIDBI)
Union Bank of India www.unionbankofindia.co.in
United Bank of India www.unitedbankofindia.com
UCO Bank www.ucobank.com
Vijaya Bank www.vijayabank.com
19 | P a g e Shekhani Vasim 08BS0001577
20. Investment in SMEs
Total SME Units Fixed Investment
Sr. No. Year
(Lakhs) (Rs. Crores)
1 1990-91 67.87 93555
2 1991-92 70.63 100351
3 1992-93 73.51 109623
4 1993-94 76.49 115795
5 1994-95 79.60 123790
6 1995-96 82.84 125750
7 1996-97 86.21 130560
8 1997-98 89.71 133242
9 1998-99 93.36 135482
10 1999-00 97.15 139982
11 2000-01 101.1 146845
12 2001-02 105.21 154349
13 2002-03 109.49 162317
14 2003-04 113.95 170219
15 2004-05 118.59 178699
16 2005-06 123.42 188113
20 | P a g e Shekhani Vasim 08BS0001577
21. Credit to MSE sector from Public Sector Banks
The table below gives the status of credit flow to the micro and small enterprises
(MSE) sector from the public sector banks since 2000:
Year Net Bank Credit (NBC) Credit to SMEs % of NBC
2000 316427 46045 14.6
2001 341291 48400 14.2
2002 396954 49743 12.5
2003 477899 52988 11.1
2004 558849 58278 10.4
2005 718722 67634 9.4
2006 1017614 82492 8.1
2007 1317705 104703 8.0
Source: RBI Provisional
Amount Invested in SMEs by ministry of Small scale industry via
Credit Linked Capital Subsidy Scheme (CLCSS)
Year No. of Amount
Units sanctioned
Assisted (Rs. Lakhs)
2001-02 9 21.36
2002-03 47 93.97
2003-04 150 368.79
2004-05 526 1351.89
2005-06 699 1801.17
2006-07 1189 3795.47
Total 2620 7432.65
Source: Development Commissioner, Ministry of SMEs
21 | P a g e Shekhani Vasim 08BS0001577
22. Amount Invested in SMEs by ministry of Small scale industry via ISO
9000 Incentive Scheme
Year No. of Amount sanctioned
Units (Rs. Crores)
Assisted
1993-94 3 0.016
1994-95 10 0.043
1995-96 48 0.25
1996-97 54 0.39
1997-98 85 0.49
1998-99 174 0.96
1999-00 361 2.25
2000-01 649 4.05
2001-02 992 6
2002-03 1182 6.99
2003-04 917 4.77
2004-05 3314 17.33
2005-06 4101 19.44
2006-07 1543 7.37
Total 13433 70.88
Average assistance/unit= Rs. 52,765
Source: Development Commissioner, Ministry of SMEs
22 | P a g e Shekhani Vasim 08BS0001577
23. 3. SME Services Provided by State Bank of India
State Bank of India (SBI) is the forerunner in the field of SME financing.
Majority of the loans to SMEs are been provided by SBI. SBI has introduced
various schemes for SMEs. The various schemes are according to the sector in
which a particular SME belongs. SBI has introduced SME financing for SME
belonging to sectors like:
Agriculture
Medical
Transport
Tourism
Art
Education
and many more.
SME Business Unit is implementing multiple strategies to maintain Banks
premier position in SME financing.
The Advances given By SBI to SME sector increased to Rs. 76,329 Crores as
on 31.03.2008 from Rs. 58,674 Crores of the previous year registering a
growth of 30%.
The Deposits of SBI under SME sector increased to Rs. 1,65,168 Crores as at
the end of March 2008 from Rs. 1,23,054 Crores of previous year, recording a
growth of 34% during the year.
The SME architecture has been firmly established and with a focus on
companies with a turnover of less than Rs. 50 Crores, SBI’s advances to SME
rose by 26% in FY08.
Currently, SBI has 12-lakh SME customers.
Credit Given by SBI to SMEs
Q4FY08 Q4FY07 Q3FY08 % OF % OF % OF
TOTAL Y-O-Y Q-O-Q
GROWTH GROWTH
RS IN 782 621 691 19 26 13.1
BN
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24. 3.1 Steps for SME loans by State Bank of India (SBI)
1. Application for loan by SME to local branch of a particular area.
2. Inspection/Survey of SME by the Executives of that Local branch.
3. Sending the Documents of survey by Local branch to SMECC branch
4. Preparing credentials of Promoters and firm by SMECC branch and
investigating the same
5. Estimating the amount of loan to be sanctioned and forwarding the
documents for sanctioning.
6. If the loan is been sanctioned by the central authority then
disbursement of the loan amount into account of the SME.
24 | P a g e Shekhani Vasim 08BS0001577
25. The above figure shows the steps for availing finance through State Bank of
India (SBI) using loans. Here is the brief description of the above shown
procedure:
First of all the SME who wants to avail loan has to visit the local branch office
of their area, where by the loan application is been filled by the SME.
After that the executives of that branch check whether all the necessary
documents are provided by the SME or not, then if all necessary documents are
submitted the next step comes whereby the officials of that local branch go to
the premises of that SME and just have a brief survey of promoter as well as the
premises.
After they are satisfied they send the file of necessary documents to the
SMECC branch, which is a special branch for SME loans. Where by the credit
appraisal takes place, which consist of credit appraisal of promoter, financial
appraisal, determining cost of project, understanding various means of finance
used, profitability estimate, cash flow projections , marketing appraisal etc. ,
which is explained in next section. This step brings out the clear picture
whether the loan should be given to the SME or not?
If the SMECC branch is satisfied with the details then it forward the request of
granting loan to the sanctioning authority.
And finally after the verification by sanctioning authority, the disbursement of
loan amount takes place in the account of that SME
This whole procedure right from application to disbursement of loan amount
takes approximately 20-25 days as the procedure involves analysis of
documents by various branches and thus the movement of documents amongst
them, if all this procedure would have taken place at single place then it would
take only 10-12 days for disbursement.
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26. 3.2 Credit Appraisal By banks
1. Credit Worthiness of Borrower/ KYC form
2. Technical Appraisal
3. Financial Appraisal
4. Determination of Cost of Project
5. Determining means of finance
6. Profitability Estimate
7. Break Even Analysis
8. Analyzing Cash flows projections
9. Analyzing Balance Sheet
10. Economic Appraisal
11. Marketing Appraisal
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27. 3.3 SME Financing Schemes by SBI
3.3.1 Open term Loan
Purpose:
Expansion and Modernization
Upgradation of Technology/machinery, acquisition of hardware,
software etc.
Acquisition of ISO and other certificates.
Visits abroad for business development etc.
Loan Amount:
Maximum for service sector: Rs. 100 Lacs.
Maximum for manufacturing sector: Rs. 250 Lacs.
Amount of loan available:
90% of cost
Repayment Period:
Maximum 3 years, extendable upto 5 years.
Collateral:
Personal Guarantee of Promoters in all cases
Pledge of Promoter’s equity in case of corporate.
Eligibility:
Existing or new corporate/Non-corporate customers of SME segment
with good rating.
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28. 3.3.2 School Plus
Purpose:
Construction of new building/repairing.
Purchase of equipments, software, and furniture.
Additional land for expansion or play ground, bus etc.
Loan amount:
Need Based- No upper limit
Amount of loan available:
85% of project cost
Repayment:
Minimum-3 years, Maximum -7 years.
Collateral:
For loan < Rs. 2 Lacs – Personal Guarantee of promoters/others.
For loans > 2lacs – Personal Guarantee + Equitable mortgage of
land & building of the school.
Eligibility:
Government schools/ Private schools/ Colleges having necessary
approval from the government (Excluding professional colleges
& coaching institutes)
Interest Rate:
Loan < Rs. 2 Lacs – 9.25%
Loan amount between Rs. 2 Lacs & 5 Lacs.- 10.25%
Loan amount between Rs. 5 Lacs & 25 Lacs.- 11.00%
28 | P a g e Shekhani Vasim 08BS0001577
29. 3.3.3 Paryatan Plus
Purpose:
Construction, renovation, modernization, addition to hotels, Yatri
niwas, Dharmsala, Restaurants, Travel Agency etc.
Construction of office premises.
Purchase of computer & equipments; purchase of luxury buses,
cars, vans, house boats etc.
Fast food centers, coffee houses, ice cream parlours, amusement
park, ropeway, health club etc. are also eligible.
Loan amount:
Need Based- No upper limit
Amount of loan available:
80% of project cost
60% for purchase of old vehicles ,not more than 5 years old
Repayment:
Minimum-3 years , Maximum -7 years
Maximum moratorium period – 1.5 years
Collateral:
Tangible security for at least 50% of loan amount.
29 | P a g e Shekhani Vasim 08BS0001577
30. Eligibility:
Individual, Partnership firm, Ltd. Company, Trust.
Interest Rate:
Loan < Rs. 50,000 – 8.5%
Loan amount between Rs. 50,000 & 2 Lacs.- 9.5%
Loan amount between Rs. 2 Lacs & 5 Lacs.- 10.25%
Loan amount between Rs. 5 Lacs & 25 Lacs.- 11.00%
Loan above Rs. 25 Lacs – 11.00 to 12.75%
30 | P a g e Shekhani Vasim 08BS0001577
31. 3.3.4 Transport Plus
Purpose:
Finance for new four wheelers i.e. trucks, tankers, trailers, luxury
buses and cars.
Loan amount:
Minimum- Rs. 10 Lacs, Maximum- Rs. 10 Crores.
Amount of loan available:
80% of project cost
Repayment:
Maximum – 5 years including Maximum moratorium period of 3
months.
Collateral:
Tangible security for at least 50% of loan amount.
Eligibility:
Transport operators owning more than 10 vehicles including the
proposed ones.
Chief promoter should be IT assessee and having National/State
permits
Interest Rate:
Loan amount between Rs. 15 Lacs & 7.5 Crores- 11.00%
31 | P a g e Shekhani Vasim 08BS0001577
32. 3.3.5 Doctor Plus
Purpose:
Equipments, setting up of clinic.
X-ray lab, nursing homes, and Pathological clinics.
Computers/ ambulance.
Expansion or renovation of existing premises.
Any other activities related to medical profession.
Loan amount:
Maximum- Rs. 5 Crores of which upper limit for working capital is:
(a) 10% of amount upto Rs. 1 Crore.
(b) 5% of amount above Rs. 1 Crore and minimum Rs. 10 Lacs.
Amount of loan available:
Upto Rs. 5 Lacs - 90% of loan amount.
Above Rs. 5 Lacs- 85% of loan amount
Repayment:
Maximum -7 years
Maximum moratorium period – 1 year.
Collateral:
Allopathic/other doctors upto Rs. 15 Lacs/10 Lacs – No security
Loans over Rs. 15 Lacs/ 10 Lacs. For Allopathic/other doctors –
25% of loan amount plus personal guarantee.
32 | P a g e Shekhani Vasim 08BS0001577
33. Eligibility:
Assessment based on simplified scoring model. Min. score-60%
Interest Rate:
Loan < Rs. 50,000 – 8.5%
Loan amount between Rs. 50,000 & 2 Lacs.- 9.0%
Loan amount between Rs. 2 Lacs & 5 Lacs.- 9.25%
Loan amount between Rs. 5 Lacs & 25 Lacs.- 10.25%
33 | P a g e Shekhani Vasim 08BS0001577
34. 3.3.6 SBI Shoppe
Purpose:
Purchase of new/old shops/offices.
Modernization/renovation Expansion/addition/alteration of shops.
Building of Training /Service centers/ garage etc.
Furniture/ fixtures, electrical fittings.
Loan amount:
Maximum- Rs. 20 Lacs.
Amount of loan available:
75% for new shop & 60% for old shop.
Repayment:
Minimum-3 years , Maximum -7 years
Maximum moratorium period – 6 months
Collateral:
Hypothecation/Pledge / Mortgage of property.
Eligibility:
Individual, Partnership firm, Ltd. Company, Trust/Franchisees.
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35. 3.3.7 Dental Doctor Plus
Purpose:
To boost the financing to Dental equipment under tie-up arrangement.
To finance qualified dentists
For buying equipment
Any other activities related to Dental profession
Loan amount:
Maximum- Rs. 10 Lacs.
Amount of loan available:
Up to Rs. 25,000 – 100%
Over Rs. 25,000 and up to Rs. 5 Lacs – 90%
Over Rs. 5 Lacs and up to Rs. 10 Lacs – 80%
Repayment:
Minimum-3 years , Maximum -5-10 years
Maximum moratorium period – 6 months, for construction
purpose it is 12 months
Collateral:
Hypothecation/Pledge / Mortgage of property.
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36. Eligibility:
Individual, Partnership firm, Ltd. Company, Trust/Franchisees.
Promoters should have minimum BDS and should be registered
practitioners.
Interest Rate:
Loan < Rs. 50,000 – 8.5%
Loan amount between Rs. 50,000 & 2 Lacs.- 9.0%
Loan amount between Rs. 2 Lacs & 5 Lacs.- 9.25%
Loan amount between Rs. 5 Lacs & 25 Lacs.- 10.25%
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37. 3.3.8 Cyber Plus
Purpose:
To set up internet/cyber cafes especially at rural and semi-urban
centers with potential for such a facility.
Amount of loan margin:
Rs. 9000
Repayment:
36 to 40 monthly installments
Moratorium period- 3 months
Collateral:
Security for assets purchased from bank finance.
Eligibility:
Individual entrepreneurs
The kiosk operator should be a local person
Educational qualification - Minimum Plus two
Age between 20 and 45 years
Should possess basic computer knowledge.
Interest Rate:
Loan – 9.5%
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38. 3.3.9 Rice Mill Plus
Purpose:
Acquisition of machinery/factory building for modernization or
expansion.
Working capital needs.
Loan amount:
Based on Project cost.
Amount of loan available:
85-75% of project cost.
Working capital:
(a) Paddy & rice- 80-75%
(b) Brokens -80%
(c) Gunny bags- 60%
(d) Bran- 70%
Repayment:
Minimum-5 years , Maximum -7 years
Maximum moratorium period – 12 months
For working capital-12 months can be extended to other 12
months under certain conditions.
Collateral:
Loans >5 Lacs - Equitable mortgage of property/ tangible security.
38 | P a g e Shekhani Vasim 08BS0001577
39. Eligibility:
Profit making existing units and new units of good credit rating.
Interest Rate:
Loan < Rs. 50,000 – 8.5%
Loan amount between Rs. 50,000 & 2 Lacs.- 9.5%
Loan amount between Rs. 2 Lacs & 5 Lacs.- 10.25%
Loan amount between Rs. 5 Lacs & 25 Lacs.- 11%
Loan amount above 25 Lacs.- 11 to 12.75%
39 | P a g e Shekhani Vasim 08BS0001577
40. 3.3.10 Rice Mill Plus
Purpose:
Acquisition of machinery/factory building for modernization or
expansion.
Working capital needs.
Loan amount:
Based on Project cost.
Amount of loan available:
85-75% of project cost.
Working capital- 85-75%
Repayment:
Minimum-5 years , Maximum -7 years
Maximum moratorium period – 12 months
Collateral:
Loans < 5 Lacs – No security
Loans >5 Lacs - Equitable mortgage of property/ tangible security.
Eligibility:
Profit making existing units and new units of good credit rating.
Interest Rate:
Loan < Rs. 50,000 – 8.5%
Loan amount between Rs. 50,000 & 2 Lacs.- 9.5%
Loan amount between Rs. 2 Lacs & 5 Lacs.- 10.25%
Loan amount between Rs. 5 Lacs & 25 Lacs.- 11%
Loan amount above 25 Lacs.- 11 to 12.75%
40 | P a g e Shekhani Vasim 08BS0001577
41. 4. SME Services Provided by ICICI Bank
ICICI is amongst the leading private sectors bank in India. ICICI is the second
largest bank of the country. ICICI bank has introduced various schemes for SMEs.
The various schemes are according to the sector in which a particular SME belongs
as seen in case of SBI. ICICI bank has introduced SME financing for SME
belonging to sectors like:
Automotive
Transport
Tourism
Education
Construction
Apparels
Gems and jewelry
and many more.
Few Facts about ICICI bank:
The total loans given by the ICICI bank has decreased by 1.4% from 2007 to
2008. The total loans given by the bank was Rs. 2155.17 billion on Dec 31,
2007; it increased to Rs. 2256.16 billion in Mar 2008 and again decreased to
Rs. 2125.21 billion in Dec2008.
The breakup of the total loan amount given by ICICI bank for the year 2008 is
as follow:
Retail (Personal, home, vehicle etc.) : 54%
Overseas: 26%
Domestic corporate: 12%
Rural: 4%
SME: 4%
Thus out of the total loans given by the ICICI bank in year 2008 i.e. Rs.2125
billion, the SME loans come out to be 4% of 2125 billion = Rs. 85 billion
41 | P a g e Shekhani Vasim 08BS0001577
42. 4.1 Steps for SME loans by ICICI bank
1. Application for loan by SME to local branch of a particular area.
2. Sending the Documents collected by Local branch to SME branch
3. Preparing credentials of Promoters and firm by SME cell in SME
branch and investigating the same
4. Estimating the amount of loan to be sanctioned and if all credentials
are positive then sanctioning of loan by SME cell.
5. Disbursement of loan in the account of the SME.
42 | P a g e Shekhani Vasim 08BS0001577
43. The above figure shows the steps for availing finance through ICICI banks
using loans. Here is the brief description of the above shown procedure:
First of all the SME who wants to avail loan has to visit the local branch office
of their area, where by the loan application is been filled by the SME.
The local area branch sends the file of necessary documents to the SME branch,
which is a special branch for SME loans. Where by the credit appraisal takes
place by SME cell which is in SME branch, which consist of credit appraisal of
promoter, financial appraisal, determining cost of project, understanding
various means of finance used, profitability estimate, cash flow projections ,
marketing appraisal etc. This step brings out the clear picture whether the loan
should be given to the SME or not?
If the SME cell is satisfied with the details then it forward the request of
granting loan to the sanctioning authority within the SME branch.
And finally after the verification by sanctioning authority, the disbursement of
loan amount takes place in the account of that SME
This whole procedure right from application to disbursement of loan amount
takes approximately 15-20 days as the procedure involves analysis of
documents by only 2 branches i.e. the local area branch and the SME branch
and thus the disbursement period is less as compared to SBI as there is to and
fro movement of documents between several branches in SBI..
43 | P a g e Shekhani Vasim 08BS0001577
44. 4.2 SME Financing schemes by ICICI bank for various sectors
4.2.1. Automotive Sector
Purpose:
To set up an automobile manufacturing unit, expansion, Upgradation
of technology.
Loan amount:
Minimum- Rs. 10 Lacs.
No upper limit
Amount of loan available:
75-90%
Repayment:
On demand but maximum 5 years but in some cases can be
extended to 7years.
Collateral:
Immovable property, Assets financed or Tangible security of
about 30-40% of loan amount.
Eligibility:
Networth should be minimum Rs. 40 Lacs
Interest Rate:
Loan : 16%
Service Charges:
0.50-2.50%
44 | P a g e Shekhani Vasim 08BS0001577
45. 4.2.2. Construction Sector
Purpose:
To set up a construction company, purchase of equipments,
Upgradation of technology.
Loan amount:
Minimum- Rs. 10 Lacs.
No upper limit
Amount of loan available:
75-90%
Repayment:
On demand but maximum 5 years but in some cases can be
extended to 7years.
Collateral:
Immovable property, Assets financed or Tangible security of
about 30-40% of loan amount.
Eligibility:
Networth should be minimum Rs. 40 Lacs
Interest Rate:
Loan : 16%
Service Charges:
0.50-2.50%
45 | P a g e Shekhani Vasim 08BS0001577
46. 4.2.3. Pharmaceutical Sector
Purpose:
To set up a Pharmaceutical unit, Upgradation, innovation.
Loan amount:
Minimum- Rs. 10 Lacs.
No upper limit
Amount of loan available:
75-90%
Repayment:
On demand but maximum 5 years but in some cases can be
extended to 7years.
Collateral:
Immovable property, Assets financed or Tangible security of
about 30-40% of loan amount.
Eligibility:
Networth should be minimum Rs. 40 Lacs
Interest Rate:
Loan : 16%
Service Charges:
0.50-2.50%
46 | P a g e Shekhani Vasim 08BS0001577
47. 4.2.4. Apparel Sector
Purpose:
To set up an apparel manufacturing unit, retail stores, expansion,
Upgradation.
Loan amount:
Minimum- Rs. 10 Lacs.
No upper limit
Amount of loan available:
75-90%
Repayment:
On demand but maximum 5 years but in some cases can be
extended to 7years.
Collateral:
Immovable property, Assets financed or Tangible security of
about 30-40% of loan amount.
Eligibility:
Networth should be minimum Rs. 40 Lacs.
Interest Rate:
Loan : 16%
Service Charges:
0.50-2.50%
47 | P a g e Shekhani Vasim 08BS0001577
48. 4.2.5. Transport Sector
Purpose:
Finance for new four wheelers i.e. trucks, tankers, trailers, luxury
buses and cars.
Loan amount:
Minimum- Rs. 10 Lacs.
No upper limit
Amount of loan available:
75-90%
Repayment:
On demand but maximum 5 years but in some cases can be
extended to 7years.
Collateral:
Immovable property, Assets financed or Tangible security of
about 30-40% of loan amount.
Eligibility:
Networth should be minimum Rs. 40 Lacs.
SMEs should have National/state permits.
Interest Rate:
Loan : 16%
Service Charges:
0.50-2.50%
48 | P a g e Shekhani Vasim 08BS0001577
49. 4.2.6. Gems & Jewelry Sector
Purpose:
To set up a gems and jewelry unit, expansion of the old unit,
Upgradation.
Loan amount:
Minimum- Rs. 10 Lacs.
No upper limit
Amount of loan available:
75-90%
Repayment:
On demand but maximum 5 years but in some cases can be
extended to 7years.
Collateral:
Immovable property, Assets financed or Tangible security of
about 30-40% of loan amount.
Eligibility:
Networth should be minimum Rs. 40 Lacs
Interest Rate:
Loan : 16%
Service Charges:
0.50-2.50%
49 | P a g e Shekhani Vasim 08BS0001577
50. 4.2.7. Travel and Tourism Sector
Purpose:
Construction, renovation, modernization, addition to hotels, Yatri
niwas, Dharmsala, Restaurants, Travel Agency etc.
Construction of office premises.
Purchase of computer & equipments; purchase of luxury buses,
cars, vans, house boats etc.
Fast food centers, coffee houses, ice cream parlours, amusement
park, ropeway, health club etc. are also eligible.
Loan amount:
Minimum- Rs. 10 Lacs.
No upper limit
Amount of loan available:
75-90%
Repayment:
On demand but maximum 5 years but in some cases can be
extended to 7years.
Collateral:
Immovable property, Assets financed or Tangible security of
about 30-40% of loan amount.
Eligibility:
Networth should be minimum Rs. 40 Lacs
50 | P a g e Shekhani Vasim 08BS0001577
51. Interest Rate:
Loan : 16%
Service Charges:
0.50-2.50%
51 | P a g e Shekhani Vasim 08BS0001577
52. 4.2.8. Education Sector
Purpose:
Construction of new building/repairing.
Purchase of equipments, software, and furniture.
Additional land for expansion or play ground, bus etc.
Loan amount:
Minimum- Rs. 10 Lacs.
No upper limit
Amount of loan available:
75-90%
Repayment:
On demand but maximum 5 years but in some cases can be
extended to 7years.
Collateral:
Immovable property, Assets financed or Tangible security of
about 30-40% of loan amount.
Eligibility:
Networth should be minimum Rs. 40 Lacs.
Government schools/ Private schools/ Colleges having necessary
approval from the government (Excluding professional colleges
& coaching institutes)
Interest Rate:
Loan : 16%
Service Charges:
0.50-2.50%
52 | P a g e Shekhani Vasim 08BS0001577
53. 4.2.9. Medical Sector
Purpose:
Equipments, setting up of clinic, Labs etc.
Computers/ ambulance.
Expansion or renovation of existing premises.
Any other activities related to medical profession.
Loan amount:
Minimum- Rs. 10 Lacs.
No upper limit
Amount of loan available:
75-90%
Repayment:
On demand but maximum 5 years but in some cases can be
extended to 7years.
Collateral:
Immovable property, Assets financed or Tangible security of
about 30-40% of loan amount.
Eligibility:
Networth should be minimum Rs. 40 Lacs
Promoter must be a Qualified Doctor.
Interest Rate:
Loan : 16%
Service Charges:
0.50-2.50%
53 | P a g e Shekhani Vasim 08BS0001577
54. 4.2.10. Climate Change Initiative
Purpose:
To help climate change initiative programs, which help to preserve
environment like developing non-renewable energy dependent
projects etc.
Loan amount:
Minimum- Rs. 10 Lacs.
No upper limit
Amount of loan available:
75-90%
Repayment:
On demand but maximum 5 years but in some cases can be
extended to 7years.
Collateral:
Immovable property, Assets financed or Tangible security of
about 30-40% of loan amount.
Eligibility:
Networth should be minimum Rs. 40 Lacs
Interest Rate:
Loan : 16%
Service Charges:
0.50-2.50%
54 | P a g e Shekhani Vasim 08BS0001577
55. 5. Sector wise comparison of SME financing services
Medical Sector
Bank SBI ICICI bank
Interest rate < Rs. 50,000 – 8.5% Loan : 16%
Rs. 50,000 - 2 Lacs.- 9.0%
Rs. 2 Lacs - 5 Lacs.- 9.25%
Rs. 5 Lacs - 25 Lacs.- 10.25%
Service charge Nil 0.50 – 2.50% of loan
amount
Loan amount Maximum – Rs. 5 Crores Minimum Rs. 10 Lacs
For working Capital: No upper limit
10% of amount upto Rs. 1 Crore.
5% of amount above Rs. 1 Crore
and minimum Rs. 10 Lacs.
Margin/ < Rs. 5 Lacs - 90% 75-90%
Amount of > Rs. 5 Lacs- 85%
loan
sanctioned
Repayment Maximum – 7 years On demand
Period Maximum 5 years but
in cases upto 7 years
Security/ Allopathic/other doctors upto Rs. Immovable property
collateral 15 Lacs/10 Lacs – No security Assets Financed
Tangible security of 30-
Loans over Rs. 15 Lacs/ 10 Lacs.
40% of loan amount
For Allopathic/other doctors –
25% of loan amount plus
personal guarantee.
Eligibility Based on simplified scoring Networth should be
model. minimum Rs. 40 Lacs
Qualified Doctor.
55 | P a g e Shekhani Vasim 08BS0001577
56. Interpretation: Following inference can be made from table above:
In case of SBI the interest rate is different for different loan amount but for all
slabs the interest rate is less compared to the interest rate of ICICI bank.
In case SBI there is no service charge to be paid while in case of ICICI bank
there is about 0.5-2.50% service charge so in this case SBI is better than ICICI
bank.
In case of SBI there is no minimum limit for loan amount while for ICICI bank
it is Rs. 10 lacs. While there is maximum limit for SBI is Rs. 5crores and Rs. 1
crore for working capital while for ICICI there is no upper limit. So we can say
in case of minimum loan amount SBI is better and I case of upper limit of loan
amount ICICI is better.
In case of SBI the amount of loan available is 90% for loan amount below Rs. 5
lacs and above Rs. 5 lacs it is 85% while in case of ICICI bank it varies
between 75-90% so for loan below Rs. 5 lacs SBI is a better option while for
loan amount above Rs. 5 lacs if amount of loan sanctioned is above 85% then
ICICI bank will be right choice otherwise SBI will be a better option.
The repayment period of SBI is maximum 7 years while for ICICI bank it is
maximum 5 years but only for certain cases it can be extended to 7 years in
ICICI bank. So looking at this figures it is clear that in this case SBI is better
option than ICICI bank
In case of SBI the security for Allopathic doctors for loan above Rs. 15 lacs is
25% and below that it is Nil while in case of other doctors for loan amount
above Rs. 10 lacs the security is 25% and below that it is Nil but in ICICI bank
the security is 30-40% for all loan amount and for everyone thus it is clear that
SBI is better compared to ICICI bank in case of security.
For eligibility criteria, In SBI there is credit scoring model and based on the
score obtain in that loan is given to only those SMEs who score above 60% i.e.
if they fail to qualify for one criteria of a model but qualify for rest other criteria
then they are eligible but in case of ICICI the SME should have a Networth of
minimum Rs. 40 lacs otherwise they fail to qualify for loan. Thus SBI seems to
be a better option here.
Looking at the above interpretations it is clear that for SME belonging to
Medical sector SME loan from SBI will be better option as compared to ICICI
bank.
56 | P a g e Shekhani Vasim 08BS0001577
57. Education Sector
Bank SBI ICICI bank
Interest rate < 2 Lacs.- 9.25% Loan : 16%
Rs. 2 Lacs - 5 Lacs.- 10.25%
Rs. 5 Lacs - 25 Lacs.- 11%
Service charge Nil 0.50 – 2.50% of loan
amount
Loan amount Need based Minimum Rs. 10 Lacs
No upper limit No upper limit
Margin/ 85% 75-90%
Amount of
loan
sanctioned
Repayment Minimum-3 years On demand
Period Maximum – 7 years Maximum 5 years but
in cases upto 7 years
Security/ < Rs. 2 Lacs – Personal Immovable property
collateral Guarantee of promoters/others. Assets Financed
Tangible security of 30-
> 2lacs – Personal Guarantee +
40% of loan amount
Equitable mortgage of land &
building of the school.
Eligibility Government schools/ Private Networth should be
schools/ Colleges having minimum Rs. 40 Lacs
necessary approval from the Institutes having
necessary approval
government (Excluding
from Government.
professional colleges & coaching
institutes)
57 | P a g e Shekhani Vasim 08BS0001577
58. Interpretation: Following inference can be made from table above:
In case of SBI the interest rate is different for different loan amount but for all
slabs the interest rate is less compared to the interest rate of ICICI bank.
In case SBI there is no service charge to be paid while in case of ICICI bank
there is about 0.5-2.50% service charge so in this case SBI is better than ICICI
bank.
In case of SBI there is no minimum limit for loan amount while for ICICI bank
it is Rs. 10 lacs. While there is no upper limit in both the cases. So we can say
SBI is better than ICICI bank as there is no minimum loan limit, it is need
based.
In case of SBI the amount of loan available is 85% while in case of ICICI bank
it varies between 75-90% so if amount of loan sanctioned is above 85% then
ICICI bank will be right choice otherwise SBI will be a better option.
The repayment period of SBI is minimum 3 years and maximum 7 years while
for ICICI bank it is maximum 5 years but only for certain cases it can be
extended to 7 years in ICICI bank. So looking at these figures it is clear that in
this case SBI is better option than ICICI bank as maximum limit in all cases for
SBI is 7 years.
In case of SBI the security for loan amount below Rs. 2 lacs is only personal
guarantee of Promoter and for loan amount above Rs. 2 lacs the security is
personal guarantee of Promoter as well as equitable amount of mortgage but in
ICICI bank the security is 30-40% for all loan amount and for everyone thus it
is clear that for loan amount below Rs. 2 Lacs SBI is better compared to ICICI
bank and for loan amount above Rs. 2 lacs ICICI bank is a better option in case
of security.
For eligibility criteria, In SBI all institutions with necessary government
approval except professional colleges and coaching classes are eligible there is
no criteria of Networth while in case of ICICI the SME should have a Networth
of minimum Rs. 40 lacs otherwise they fail to qualify for loan. Thus SBI seems
to be a better option here.
Looking at the above interpretations it is clear that for SME belonging to
Education sector SME loan from SBI will be better option as compared to
ICICI bank.
58 | P a g e Shekhani Vasim 08BS0001577
59. Transport Sector
Bank SBI ICICI bank
Interest rate Rs. 15 Lacs – 7.5 Crores - 11% Loan : 16%
Service charge Nil 0.50 – 2.50% of loan
amount
Loan amount Minimum- Rs. 10 Lacs Minimum Rs. 10 Lacs
Maximum- Rs. 10 Crores No upper limit
Margin/ 80% 75-90%
Amount of
loan
sanctioned
Repayment Maximum – 5 years including On demand
Period Maximum moratorium period of Maximum 5 years but
in cases upto 7 years
3 months.
Security/ Tangible security for at least Immovable property
collateral 50% of loan amount. Assets Financed
Tangible security of 30-
40% of loan amount
Eligibility Transport operators owning Networth should be
more than 10 vehicles including minimum Rs. 40 Lacs
the proposed ones. SMEs having
National/state permits.
Chief promoter should be IT
assessee and having
National/State permits
59 | P a g e Shekhani Vasim 08BS0001577
60. Interpretation: Following inference can be made from table above:
For SBI the interest rate is 11% while for ICICI bank it is 16% thus it can be
seen in case of interest rate SBI is better than ICICI bank.
In SBI there is no service charge while in case of ICICI bank about 0.5-2.50%
service charge is taken thus SBI is better than ICICI bank in this case.
As can be seen the amount of loan available by SBI is 80% of project cost while
for ICICI bank it varies between 75-90% so if amount of loan sanctioned is
above 85% then ICICI bank will be right choice otherwise SBI will be a better
option.
The repayment period in case of SBI is Maximum 5 year including moratorium
period of 3 months while in case of ICICI bank it is also maximum 5 years but
in certain case it can be extended to 7 years thus in this case ICICI bank is a
better option.
In case of SBI the security is tangible security for at least 50 % of loan amount
but in ICICI bank the security is tangible security for at least 30-40% of loan
amount or assets financed or immovable property thus it is clear that if the SME
has tangible security for loan than ICICI bank is a better option otherwise SBI
is a better option.
For eligibility criteria, In SBI only those SMEs are eligible who own more than
10 vehicles (including the proposed ones) and the firm should have
National/State permits while in case of ICICI the SME should have a Networth
of minimum Rs. 40 lacs as well as the firm should have National/State permit
otherwise they fail to qualify for loan. Thus SBI seems to be a better option
here.
Looking at the above interpretations it is clear that for SME belonging to
Transport sector SME loan from SBI will be better option as compared to ICICI
bank.
60 | P a g e Shekhani Vasim 08BS0001577
61. Travel &Tourism Sector
Bank SBI ICICI bank
Interest rate < Rs. 50,000 – 8.5% Loan : 16%
Rs. 50,000 - 2 Lacs.- 9.5%
Rs. 2 Lacs - 5 Lacs.- 10.25%
Rs. 5 Lacs - 25 Lacs.- 11.00%
> Rs. 25 Lacs – 11.00 to 12.75%
Service charge Nil 0.50 – 2.50% of loan
amount
Loan amount Need Based Minimum Rs. 10 Lacs
No upper limit No upper limit
Margin/ 80% of project cost 75-90%
Amount of 60% for purchase of old vehicles
loan
sanctioned
Repayment Minimum-3 years On demand
Period Maximum -7 years Maximum 5 years but
in cases upto 7 years
Excluding Maximum
moratorium period – 1.5 years
Security/ Tangible security for at least Immovable property
collateral 50% of loan amount. Assets Financed
Tangible security of 30-
40% of loan amount
Eligibility Individual, Partnership firm, Ltd. Networth should be
Company, Trust. minimum Rs. 40 Lacs.
61 | P a g e Shekhani Vasim 08BS0001577
62. Interpretation: Following inference can be made from table above:
In case of SBI the interest rate is different for different loan amount but for all
slabs the interest rate is less compared to the interest rate of ICICI bank.
In case SBI there is no service charge to be paid while in case of ICICI bank
there is about 0.5-2.50% service charge so in this case SBI is better than ICICI
bank.
In case of SBI there is no minimum limit for loan amount while for ICICI bank
it is Rs. 10 lacs. While there is no upper limit in both the cases. So we can say
SBI is better than ICICI bank as there is no minimum loan limit, it is need
based.
In case of SBI the amount of loan available is 80% of project cost and 60% for
purchase of old vehicles while in case of ICICI bank it varies between 75-90%
so in this case ICICI bank is better option than SBI.
The repayment period of SBI is minimum 3 years and maximum 7 years
(excluding moratorium period of maximum 1.5 years) while for ICICI bank it is
maximum 5 years but only for certain cases it can be extended to 7 years in
ICICI bank. So looking at these figures it is clear that in this case SBI is better
option than ICICI bank as maximum limit in all cases for SBI is 7 years.
In case of SBI the security is tangible security for at least 50 % of loan amount
but in ICICI bank the security is tangible security for at least 30-40% of loan
amount or assets financed or immovable property thus it is clear that if the SME
has tangible security for loan than ICICI bank is a better option otherwise SBI
is a better option.
In SBI there are no specific eligibility criteria for a SME and also there are no
criteria of Networth while in case of ICICI the SME should have a Networth of
minimum Rs. 40 lacs otherwise they fail to qualify for loan. Thus SBI seems to
be a better option here.
Looking at the above interpretations it is clear that for SME belonging to
Travel & Tourism sector SME loan from SBI will be better option as compared
to ICICI bank.
62 | P a g e Shekhani Vasim 08BS0001577
63. Apparel Sector
Bank SBI (Open Term Loan ) ICICI bank
Interest rate 12.25% 16%
Service charge Nil 0.50 – 2.50% of loan
amount
Loan amount Service sector: Max. Rs. 1Crores Minimum Rs. 10 Lacs
Manufacturing sector: Max Rs. 2.5 No upper limit
Crores.
Margin/ 90% 75-90%
Amount of
loan
sanctioned
Repayment Maximum 3 years, extendable upto On demand
Period 5 years. Maximum 5 years but
in cases upto 7 years
Security/ Personal Guarantee of Promoters. Immovable property
collateral Assets Financed
Tangible security of 30-
40% of loan amount
Eligibility Individual, Partnership firm, Ltd. Networth should be
Company, Trust. minimum Rs. 40 Lacs.
63 | P a g e Shekhani Vasim 08BS0001577
64. Interpretation: Following inference can be made from table above:
For SBI the interest rate is 12.25% while for ICICI bank it is 16% thus it can be
seen in case of interest rate SBI is better than ICICI bank.
In SBI there is no service charge while in case of ICICI bank about 0.5-2.50%
service charge is taken thus SBI is better than ICICI bank in this case.
There is no upper limit for SME loan in case of SBI as in the case of ICICI
bank in which there is minimum limit of Rs. 10 lacs but there is no upper limit
in case of ICICI bank where as for SBI the upper limit for service sector is Rs. 1
Crore and for manufacturing sector it is Rs. 2.5 Crores thus SBI puts a limit on
the SME loan so if an SME wants loan more than Rs. 1 Crore in case of service
industry and Rs. 2.5 Crores in case of manufacturing sector than ICICI is a
better option.
The amount of loan sanctioned by SBI 90% of project cost while for ICICI
bank it may vary between 75-90% thus in this case SBI seems to be a better
option than ICICI bank.
The repayment period of SBI is maximum 3 years and in some cases extendable
upto 5 years while for ICICI bank it is maximum 5 years and in certain cases it
can be extended to 7 years in ICICI bank. So looking at these figures it is clear
that in this case ICICI bank is better option than SBI as maximum limit in all
cases for ICICI bank is 5 years.
In case of SBI no tangible security is required only personal guarantee of
promoters is required while in case of ICICI bank the firm should have a
Networth f minimum Rs. 40 lacs otherwise it will be not eligible. Thus in this
case SBI seems to be a better option than ICICI bank.
In SBI there are no specific eligibility criteria for a SME and also there are no
criteria of Networth while in case of ICICI the SME should have a Networth of
minimum Rs. 40 lacs otherwise they fail to qualify for loan. Thus SBI seems to
be a better option here.
Looking at the above interpretations it is clear that for SME belonging to
Apparel sector SME loan from SBI as well as from ICICI bank seems to be
equal as in some criteria SBI is better while in other criteria ICICI seems to be
better thus both are on equal positions for Apparel sector.
64 | P a g e Shekhani Vasim 08BS0001577
65. Gems & Jewelry Sector
Bank SBI (Open Term Loan ) ICICI bank
Interest rate 12.25% 16%
Service charge Nil 0.50 – 2.50% of loan
amount
Loan amount Service sector: Max. Rs. 1Crores Minimum Rs. 10 Lacs
Manufacturing sector: Max Rs. 2.5 No upper limit
Crores.
Margin/ 90% 75-90%
Amount of
loan
sanctioned
Repayment Maximum 3 years, extendable upto On demand
Period 5 years. Maximum 5 years but
in cases upto 7 years
Security/ Personal Guarantee of Promoters. Immovable property
collateral Assets Financed
Tangible security of 30-
40% of loan amount
Eligibility Individual, Partnership firm, Ltd. Networth should be
Company, Trust. minimum Rs. 40 Lacs.
65 | P a g e Shekhani Vasim 08BS0001577
66. Interpretation: Following inference can be made from table above:
For SBI the interest rate is 12.25% while for ICICI bank it is 16% thus it can be
seen in case of interest rate SBI is better than ICICI bank.
In SBI there is no service charge while in case of ICICI bank about 0.5-2.50%
service charge is taken thus SBI is better than ICICI bank in this case.
There is no upper limit for SME loan in case of SBI as in the case of ICICI
bank in which there is minimum limit of Rs. 10 lacs but there is no upper limit
in case of ICICI bank where as for SBI the upper limit for service sector is Rs. 1
Crore and for manufacturing sector it is Rs. 2.5 Crores thus SBI puts a limit on
the SME loan so if an SME wants loan more than Rs. 1 Crore in case of service
industry and Rs. 2.5 Crores in case of manufacturing sector than ICICI is a
better option.
The amount of loan sanctioned by SBI 90% of project cost while for ICICI
bank it may vary between 75-90% thus in this case SBI seems to be a better
option than ICICI bank.
The repayment period of SBI is maximum 3 years and in some cases extendable
upto 5 years while for ICICI bank it is maximum 5 years and in certain cases it
can be extended to 7 years in ICICI bank. So looking at these figures it is clear
that in this case ICICI bank is better option than SBI as maximum limit in all
cases for ICICI bank is 5 years.
In case of SBI no tangible security is required only personal guarantee of
promoters is required while in case of ICICI bank the firm should have a
Networth f minimum Rs. 40 lacs otherwise it will be not eligible. Thus in this
case SBI seems to be a better option than ICICI bank.
In SBI there are no specific eligibility criteria for a SME and also there are no
criteria of Networth while in case of ICICI the SME should have a Networth of
minimum Rs. 40 lacs otherwise they fail to qualify for loan. Thus SBI seems to
be a better option here.
Looking at the above interpretations it is clear that for SME belonging to
Gems & Jewelry sector SME loan from SBI as well as from ICICI bank seems
to be equal as in some criteria SBI is better while in other criteria ICICI seems
to be better thus both are on equal positions for Gems & Jewelry sector.
66 | P a g e Shekhani Vasim 08BS0001577
67. Other Sectors
Bank SBI (Open Term Loan ) ICICI bank
Interest rate 12.25% 16%
Service charge Nil 0.50 – 2.50% of loan
amount
Loan amount Service sector: Max. Rs. 1Crores Minimum Rs. 10 Lacs
Manufacturing sector: Max Rs. 2.5 No upper limit
Crores.
Margin/ 90% 75-90%
Amount of
loan
sanctioned
Repayment Maximum 3 years, extendable upto On demand
Period 5 years. Maximum 5 years but
in cases upto 7 years
Security/ Personal Guarantee of Promoters. Immovable property
collateral Assets Financed
Tangible security of 30-
40% of loan amount
Eligibility Individual, Partnership firm, Ltd. Networth should be
Company, Trust. minimum Rs. 40 Lacs.
67 | P a g e Shekhani Vasim 08BS0001577
68. Interpretation: Following inference can be made from table above:
For SBI the interest rate is 12.25% while for ICICI bank it is 16% thus it can be
seen in case of interest rate SBI is better than ICICI bank.
In SBI there is no service charge while in case of ICICI bank about 0.5-2.50%
service charge is taken thus SBI is better than ICICI bank in this case.
There is no upper limit for SME loan in case of SBI as in the case of ICICI
bank in which there is minimum limit of Rs. 10 lacs but there is no upper limit
in case of ICICI bank where as for SBI the upper limit for service sector is Rs. 1
Crore and for manufacturing sector it is Rs. 2.5 Crores thus SBI puts a limit on
the SME loan so if an SME wants loan more than Rs. 1 Crore in case of service
industry and Rs. 2.5 Crores in case of manufacturing sector than ICICI is a
better option.
The amount of loan sanctioned by SBI 90% of project cost while for ICICI
bank it may vary between 75-90% thus in this case SBI seems to be a better
option than ICICI bank.
The repayment period of SBI is maximum 3 years and in some cases extendable
upto 5 years while for ICICI bank it is maximum 5 years and in certain cases it
can be extended to 7 years in ICICI bank. So looking at these figures it is clear
that in this case ICICI bank is better option than SBI as maximum limit in all
cases for ICICI bank is 5 years.
In case of SBI no tangible security is required only personal guarantee of
promoters is required while in case of ICICI bank the firm should have a
Networth f minimum Rs. 40 lacs otherwise it will be not eligible. Thus in this
case SBI seems to be a better option than ICICI bank.
In SBI there are no specific eligibility criteria for a SME and also there are no
criteria of Networth while in case of ICICI the SME should have a Networth of
minimum Rs. 40 lacs otherwise they fail to qualify for loan. Thus SBI seems to
be a better option here.
Looking at the above interpretations it is clear that for SME belonging to
sector other than mentioned above, SME loan from SBI as well as from ICICI
bank seems to be equal as in some criteria SBI is better while in other criteria
ICICI seems to be better thus both are on equal positions for other sectors.
68 | P a g e Shekhani Vasim 08BS0001577
69. Conclusion
From the above comparison between SME plans provided by SBI and ICICI
bank it can be judged that for a SME belonging to a particular sector which bank is
providing a better SME plan. It can be tabulated as follows:
Sector Public Sector Bank Private Sector Bank
(SBI) (ICICI Bank)
Medical
Education
Transport
Travel & Tourism
Apparel
Gems & Jewelry
Other Sectors
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70. References
BUSINESS WORLD, 2009. The SME Whitebook 2009-2010. New Delhi:
ABP Pvt. Ltd.
http://www.statebankofindia.com/
http://www.icicibank.com/
http://www. smallindustryindia.com/
http://www.laghu-udyog.com/
http://www. rbi.org.in/
http://www. smeiift.com/
http://www.lubindia.org/
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