RETAIL BANKING

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RETAIL BANKING
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CONTENTS

• 1.1 Overview
• 1.2 Objective
• 1.3 Products/Services
• Operative account
• Non operative account
• Miscellaneous services
• 1.4 Instruments of operative account
• 1.5 Types of operative account
• 1.6 Savings account definition /facilities
• 1.7 Types of flexi deposit
• 1.8 Current account definition/facilities
• 1.9 Advances- definition /types
• 1.10 Cycle of operative account
• 1.11 Types of non operative account
• 1.12 Types of deposits
• 1.13 Cycle of non operative account
• 1.14 Types of loans
• 1.15 Cycle of loans
• 1.16 Types of miscellaneous services

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Overview

• Retail Banking denotes catering to the
  requirements of retail customers
  viz..individuals,professionals,self employed etc.
• Retail banking has seen a transformation over
  the past two decades with respect to business
  focus, delivery channel emphasis and the overall
  approach to the banking business. Today, given
  the greater stress being placed on mass
  customisation, banks are increasingly relying on
  technology to provide customised solutions to
  consumers.

4
Objective Of Retail Banking

• The objective of the Retail Bank is to provide
  its target market customers a full range of
  financial products and banking services, giving
  the customer a one-stop window for all his/her
  banking requirements. The products are backed by
  world-class service and delivered to the
  customers through the growing branch network, as
  well as through alternative delivery channels
  like ATMs, PhoneBanking, NetBanking and
  MobileBanking.

5
Products/Services Offered

• Operative accounts
• Non operative account
• Miscellaneous services

6
Operating account

• The Main services offered in this sector are
• Savings account
• Flexi deposits
• Auto sweep
• Reverse sweep
• Current account
• Advances

7
Instruments of operative accounts

• Cheques
• Demand drafts
• Managers cheques
• Cash

8
Savings account

• A minimum quaterly balance needs to be
  maintained in this type of account.The minimum
  balance criteria differs from bank to bank.
• Non Maintenance of minimum balance in the
  account attracts a quarterly fee which again is
  determined by the bank and varies for each bank

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Facilities offered for Savingsaccount

• Debit-cum-ATM card
• Auto Invest Account
• Internet Banking
• Phone Banking
• Anywhere Banking
• Standing instructions
• Doorstep service

10
Flexi Deposit

• There are two types
• 1) In a savings account,the amount held over and
  above the prescribed minimum balance would be
  automatically put in a term deposit earning
  higher return for customer.This is termed AUTO
  SWEEP

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Auto Sweep

• Eg If A hold an savings account with bank
  ABC where the minimum balance is Rs 5000.If
  A has a balance of Rs 6000 in his account the
  remaining 1000 ( 6000-5000) will be
  automatically put in a term deposit.

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Reverse Sweep

• Whenever the customer issues a cheque which
  brings down his savings account balance below the
  prescribed limit,the shortfall amount will be
  automatically taken from the term deposit.This is
  called reverse sweep.

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Reverse sweep

• Eg Considering the pervious example of A
  where Rs 1000 from his account is held as term
  deposit.If A has issued a cheque for Rs
  1000,when this cheque debits his account his
  balance reduces to rs4000 which is below the
  minimum limit of Rs5000.In such a case Rs 1000
  which was held in term deposit gets adjusted to
  savings account to bring back the saving account
  minimum balance to Rs 5000

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Flexi Deposit

• 2)The fixed deposit of a customer is held in
  units of 1000 or so as prescribed by the bank.In
  case of need the customer can withdraw part
  amount of deposit without closing the deposit.
• In case of fore-closure,the deposit would earn
  interest at rates applicable for the period run
  without any penalty.

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Flexi Deposit

• Eg If A holds a deposit of Rs 10000 with
  bank ABC broken into units of 1000 for a
  period of 6 months.Incase he withdraws Rs 700
  after 3 months.
• Cal He will earn interest for Rs 10000 for 3
  months.When he withdraws Rs 700 from his account
  the deposit is broken and Rs 1000 is moved to
  savings account.The remaining 9000 will earn
  interest for the remaining time period.

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Current Account

• What is Current account?
• A running account supporting unlimited
  withdrawals and deposits
• A current account is meant for convenience and
  not to save money

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Facilities offered for currentaccount

• Unlimited Withdrawal and Deposit
• Unlimited Cheque book
• Demand Drafts and Payorders
• Funds Transfer ( Local or Anywhere)
• Collection of Cheques/ Drafts
• Statements,Advices, Daily statement by e-mail
• Cash withdrawal and Deposits
• Multicity Cheque payment facility
• Anywhere Banking facility
• Doorstep Banking - Pick up and delivery of
  Currency / Cheque
• Mobile Banking

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STANDING INSTRUCTIONS

• STANDING INSTRUCTIONSStanding instructions can
  be given to the Bank for transfer/remittance of
  funds from one account to other account/s
  maintained in the same branch, any other branch
  of the Bank or any other bank or any other third
  party

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Advances

• An advance is a credit facility provided by the
  bank to its customers. It differs from loan in
  the sense that loans may be granted for longer
  period, but advances are normally granted for a
  short period of time. Further the purpose of
  granting advances is to meet the day-to-day
  requirements of business. The rate of interest
  charged on advances varies from bank to
  bank.Interest is charged only on the amount
  withdrawn and not on the sanctioned amount.

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Advances

• Bank has a very wide bouquet of types of credit
  facilities which can be tailor-made to suit
  customer specific requirements. In a nutshell,
  the Bank offers

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Types of Advances

• Cash Credit
• Over draft
• Discounting of bills

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Cash Credit

• Cash credit is an arrangement whereby the bank
  allows the borrower to draw amount upto a
  specified limit. The amount is credited to the
  account of the customer. The customer can
  withdraw this amount as and when he requires.
  Interest is charged on the amount actually
  withdrawn. Cash Credit is granted as per terms
  and conditions agreed with the customers.

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Overdraft

• Overdraft is also a credit facility granted by
  bank. A customer who has a current account with
  the bank is allowed to withdraw more than the
  amount of credit balance in his account.It is a
  temporary arrangement. Overdraft facility with a
  specified limit may be allowed either on the
  security of assets, or on personal security, or
  both

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Discounting of Bills

• Banks provide short-term finance by discounting
  bills, that is, making payment of the amount
  before the due date of the bills after deducting
  a certain rate of discount. The party gets the
  funds without waiting for the date of maturity of
  the bills. In case any bill is dishonoured on the
  due date, the bank can recover the amount from
  the customer.

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Advances

• What is the minimum maximum period for which
  customer can avail advance from the Bank?
• The Minimum period for which an advance may be
  sanctioned starts is one day. The maximum period
  for which an advance can be sanctioned depends
  upon-
• The Debt Service Capacity of the borrower
  reckoned from the cash flow from the business
  operations and,
• The purpose of the advance

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Cycle of Operative account

• Origination
• Service
• Closure

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Operative Account Origination
Scrutiny verification
Account opening maintenance
Application
Communication
Applicant should submit Account
opening form Address proof Identity proof Self
cheque or cash for minimum balance
Welcomepack With debit card, cheque
book, details of Account sent to customer
Verify and check validity of documents provided
Account opened Cheque book printing Mapping of
signature
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SERVICING OPERATIVE ACCOUNT
Transactions Fee Charges Interest Reporting Customer Relations
Deposit Withdrawal Frequent Withdrawals Balances overdraws Periodic account statements Transaction profile statement
Transfers Issue of Cheque books/ Account statements Regulatory Reporting
Standing Instructions Duplicate Records
Bill payments Returned Cheques
Issue of cheque books Cancellation of Drafts
Account statements Account closure
Addition/ Changes to account holders
Addition/ Changes to groups
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CLOSURE OF OPERATIVE ACCOUNT
Request Processing Administration Closure
Customer request for closure Striking balance Collection of unused cheques Closing of accounts
Banks decision to close Status on Standing instructions Uncleared cheques inward Uncleared cheques outward Cancellation of authorization ATM Phone Online Repayment of balance
Transfer to Non-operative account Special conditions Lien Approvals
Fee/ Charges Removal of accounts
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Non operating account

• Deposits
• Loans

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Deposit Services

• They can be broadly classified as
• Fixed deposit
• Recurring deposit

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Deposit Services

• The products or features offered by banks under
  these categories varies from bank to bank
• Mentioned below are a few of such products
  offered by banks

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Fixed Deposits

• Fixed Deposits impose a Simple Interest Formula
  on the Principle amount deposited by the
  customer.
• Interest can be paid Quarterly, Semi-Annually or
  Annually as req. by customer.

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Recurring/Monthly Deposits

• Every month the Customer Pays the Installment
  which is fixed in the beginning.
• For Preclosure a Penalty of 1 -2 is Charged.

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Cycle of Non operating Account

• Origination
• Servicing
• Closure

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Non Operative Account Origination
Scrutiny verification
Opening Of Deposit
Application
Communication
Provide the following Request form Proof of
indentity Cheque or cash for Amount to
be Deposited PAN details or Form 60 for Beyond
deposit of Rs 50000
Validity of documents
Certifcate of Deposit Despatched Stating
maturity Date ,rate of Interest and Amount to
be Earned end of tenure
Deposit opened,details Of maturity maintained On
system If existing customer And holds
account, Mapped to customer Savings account
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Non Operative Account Servicing
Transctions
Fee Charges
Interest
Reporting
Collect monthly deposit For recurring
deposit Movement for funds To savings
account For reverse sweep Withdraw of funds From
Issue of duplicate Deposit receipt
Monthly Statements with Interest Calculations
Quarterly interest Accrued to account For
recurring deposit For fixed deposit
quarterly,semi Annually or annually
Loss of interest Loss of interest Nominal
charge
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Non Operative Account Closure
Request
Processing
Payment
Closure
On Maturity Preclosure Renew
If no confirmation Received from Customer The
deposit gets Renewed for another Same
tenure Recover penalty Fee for
recurring Deposit Change maturity date On
system
The principal plus Interest earned during The
tenure Principal plus interest For the period
when The funds where held Pay interest or
reinvest As desired by customer
Certificate of Deposit recovered And deposit
closed By issuing demand draft Certificate of
Deposit recovered And deposit closed Issuing
demand draft
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Housing loan

• Housing loans are referred to the loans
• provided by the banks for the following purposes
• For construction/purchase of flat/house
• Repairs/Renovation of existing house/flat
• Purchase of flat/house resold
• Purchase of land

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Home Loan

• The criteria for providing housing loans differs
  from bank to bank.
• The eligibility is mainly for Individuals
  Salaried class,businessmen, professionals with
  minimum period of service
• Age Upto 50-55 years

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Housing loan sanction

• The loan amount will be calculated based on the
  value of property the customer is going to buy
  and also based on the earnings of the customer.
• The loan amount would be 36 times gross salary
  or 60 times net salary of the customer which ever
  is higher.Spouse income also considered
• Margin 15 on total project cost ( cost of land
  cost of construction)
• 30 - For repairs

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Housing loan Interest Rate

• There are 2 options
• Fixed rate
• Floating rate
• The rate also varies with the tenure selected by
  customer.There is maximum of 20 years tenure
  offered by banks

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Housing loan Repayment
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Cycle of a housing loan

• Origination
• Verification
• Sanction
• Disbursal
• Closure

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ORIGNIATION OF HOUSING LOAN
Application
Documentation
Eligibility Criteria
Margin

• You must be at least 21
• years of age when the loan
• is sanctioned.
• The loan must terminate
• before or when you turn
• 65 years of age or before
• retirement, whichever is
• earlier.
• You must be employed
• or self-employed with a
• regular source of income

If customer has identified property to Be
purchased Submit housing loan application
Details on next slide
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Documents for housing loan origination

• Passport size photograph
• Proof of residence (This applies only to new or
  non-bank customers, and could be either a PAN
  identity card, voter identification card or
  passport)
• Sale Deed/ Agreement of Sale
• Bank account Statement or passbook, for the last
  six months For employees or people in service,
  you also need to provide
• Salary certificate and other information, if any,
  about your repayment capacity
• Form 16 or a copy of the Income Tax Returns for
  the last 2 yearsFor self employed and other IT
  assessees
• IT returns for the last 3 years Receipts of
  advance tax paid
• Any other information about your repayment
  capacity
• In addition to the above mandatory documents, you
  are also required to furnish one or more of the
  following documents wherever applicable
• Letter of allotment from the housing board or
  society
• Copy of the approved plan
• Permission for construction
• Copy of the relative order in the case of
  conversion of agricultural land. (not required
  where the house/flat has been constructed by an
  approved builder)

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Documents for Housing loan

• Additional documents required for an old
  house/flat
• In the case of an old existing house, you will
  need to get a valuation certificate from approved
  valuers as well as a certificate from a
  government approved architect /structural
  engineer regarding the condition of the
  flat/house as well as its remaining life.

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Housing loan Origination

• Customers who have not identified the property
  to be bought
• In-principle approvalBanks give in-principle
  approvals based on the customer income and
  capacity to repay, to enable them to identify a
  house/ flat with full confidence.
• All loans are at the sole discretion of the
  Bank.
• Customer needs to identify the property within 3
  months from the loan being sanctioned

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Verification Processing ofHousing loan

• Stages in verification processing
• Scrutiny of the application and documents
• Verification
• Processing charges
• Sanctioning of loan
• Disbursal of loan

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Housing loan Verification Processing
SCRUTINY
VERIFICATION
SANCTION
DISBURSAL
Check credit worthiness of customer Default blac
klisted Any other loans held
Verify the property To ascertain the Market
value Verify the validity of documents
Collect Post dated Cheques,ECS, Standing
instruction from Customer for EMI Collect
0.5-1 Processing charge 80-90 of the value Of
the property Ascertained by the Bank is
sanctioned
Demand draft is Issued to the Builder or seller
of The property after The customer Shows proof
for his margin Contribution
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Closure of Housing Loan
Request
Closure
Loan account closed and documents pertaining
to The property returned to the customer. Bank
has the authority to sell the property and to
Recover its dues from the sale
proceeds.Amount Left after bank dues are covered
is returned back To customer and loan account
is closed ,post dated Cheques returned Recover
complete dues from customer and return The
property documents.Bank charge a
foreclosure Charge and closed loan account Banks
receive the outstanding balance from another Bank
taking over the loan and returns the
property Document to the bank taking over the
loan Foreclosure charges are paid by the bank
taking over The loan.Loan is closed once all
settlements are done
Loan tenure completed Customer defaults
payments and bank fore closes the
Loan Customer request for foreclosure Custome
r request another bank to take Over the existing
housing loan
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Auto Loan

• Auto loan are provided by the banks to
• Customer for the following purposes
• To buy
• A new car, jeep or Multi Utility Vehicles (MUVs)
  (any make or model)
• An old car / jeep / MUV (not more than 4 years
  old). (any make or model)

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Eligibility for Auto loan

• A Permanent employee of State/Central Government,
  Public Sector Undertaking, Private company or a
  reputed establishment or
• A Professionals or self-employed individual who
  is an income tax assessee or
• A Person engaged in agriculture and allied
  activities.

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Auto loan amount criteria

• There is no upper limit for the amount of a car
  loan. It is limited only by your repaying
  capacity. A maximum loan amount of 2 times the
  net annual income can be sanctioned. If married,
  your spouse's income could also be considered
  provided the spouse guarantees the loan
• The loan amount includes finance for one-time
  road tax, registration and insurance

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Margin for Auto loan

• Margin
• New vehicles10-15 when loan is upto Rs.4 lacs 
• 15-20 when loan exceeds Rs.4 lacs
• Old vehicles 20-30for vehicles upto 2 years old
• 30-40 for vehicles 2-4 years old

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Repayment options

• Repayment period for new vehicles Maximum of 84
  months
• Repayment period for old vehicles Maximum 60
  months for vehicles upto 2 years old Maximum 36
  for vehicles which are 2-4 years old
• You may prepay at will with no prepayment penalty
  whatsoever.

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Interest Rates on Auto Loans

• 2 options
• Fixed rate
• Floating rate

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Fixed Rate of Interest

• In the case of a fixed rate loan, the interest
  rate on the loan will remain fixed through the
  entire tenure of the loan

60
Floating Rate of Interest

• In the case of a floating rate loan, the interest
  rate could decline or rise in line with the
  changes in the Bank's Medium Term Lending Rate

61
Loan Terms

• Hypothecation When a property is hypothecated
  to a bank it means the original documents
  pertaining to the property will be held with the
  bank until the loan amount is completely repaid
  by the customer.      An authority given to a
  banker, usually a letter of hypothecation to
  enable the bank to sell goods that have been
  pledged to them as security for loan.

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Life cycle of a Auto Loan

• Origination
• Process Sanction
• Recovery closure

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ORIGNIATION OF AUTO LOAN
Application
Documentation
Eligibility Criteria
Margin
Loan to Value of the vehice (LTV). Age of the
Borrower (There is a minimum and Maximum age
limit). Tenure of the Loan. Employment Period
(balance years in service for the person
borrowing). Collateral Requirements (normally
the vehicle for which the loan is taken is kept
as a collateral with the financier
Submit auto loan application
Details on next slide
64
Documentations

• The Documents required for a Salaried Individual
  -
• Proof of Income - latest 2 attested salary slips
  with TDS certificate/Form 16.
• Proof of Residence - Ration Card/Driving
  License/Voter I-card/Electricity Bill/Insurance
  Policy.
• Banking History - photocopies of the bank
  statement showing last 3-months transactions.
• Photographs.
• Proof of Identity - Passport Copy/Voter's
  I-card/Driving License/Employer's Card.
• Signature verification from the bank.

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Documentation

• The Documents required for a Self-Employed
  Individual -
• Balance sheet and PL account for the last 2
  years certified by an Auditor.
• Acknowledged copy of IT Returns for the last 2
  years.
• Proof of Residence - Ration Card/Driving
  License/Voter I-card/Electricity Bill/Insurance
  Policy/Telephone Bill.
• Banking History - photocopies of the bank
  statement showing last 3-months transactions.
• Photographs.
• Proof of Identity - Passport Copy/Voter's
  I-card/Driving License/Employer's Card.
• Signature verification from the bank.
• Sole Proprietorship Declaration on the letterhead

66
Auto loan Verification Processing
SCRUTINY
VERIFICATION
SANCTION
DISBURSAL
Check credit worthiness of customer Default blac
klisted Any other loans held
Verify the address And office of customer Verify
the validity of documents
Collect Post dated Cheques,ECS, Standing
instruction from Customer for EMI Collect
0.5-1 Processing charge Sanction 80-90 of The
value of vehicle
Demand draft is Issued to the seller of The
vehicle after The customer Shows proof for his
margin Contribution
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Closure of Auto Loan
Request
Closure
Loan account closed and documents pertaining
to The vehicle returned to the customer. Bank
has the authority to sell the vehicle and to
Recover its dues from the sale
proceeds.Amount Left after bank dues are covered
is returned back To customer and loan account
is closed ,post dated Cheques returned Recover
complete dues from customer and return The
vehicle documents.Bank charge a
foreclosure Charge and closed loan account
Loan tenure completed Customer defaults
payments and bank fore closes the
Loan Customer request for foreclosure
68
Education loan

• These loans are specifically offered for the
  pursuit of academics in recognized schools,
  colleges and various other educational
  institutions, both in India and abroad. You may
  avail of this loan facility to meet Eligible
  Courses
• Graduation courses/ Post graduation courses/
  Professional courses
• Other courses leading to diploma, degree etc.
  conducted by colleges, universities approved by
  UGC/ Government/ AICTE etc.

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Education Loan

• Expenses considered for loan
• Fees payable to college/school/hostel
• Examination/Library/Laboratory fees
• Purchase of Books/Equipment/Instruments/Uniforms
• Caution Deposit/Building Fund/Refundable Deposit
• Travel Expenses/Passage money for studies abroad
• Purchase of computers considered necessary for
  completion of course
• Cost of a Two-wheeler upto Rs. 50,000/-

70
Education Loan Amount

• Loan Amount
• For studies in India, maximum Rs. 10 lacs
• Studies abroad, maximum Rs. 20 lacs
• Margin
• For loans up to Rs.4.0 lacs No Margin
• For loans above Rs.4.0 lacs The Margins are as
  under
• In the case of Education in India, the margin is
  5
• In the case of Education Abroad, the margin is
  15
• No processing fee/ upfront charges

71
Education loan Interest

• Loans up to Rs.4 lakh may be advanced at
  interest rate not exceeding PLR of the bank.
  Above Rs.4 lakh, the interest rate may be PLR1

72
Repayment method

• The repayment would begin one year after the
  course period or six months after you get a job,
  whichever is earlier. You are expected to pay a
  minimum amount equivalent to the EMI on a monthly
  basis. However, you can choose to pay more than
  the EMI, and we do not charge any prepayment
  penalty.

73
ORIGNIATION OF EDUCATION LOAN
Application
Documentation
Eligibility Criteria
Margin
Should be an Indian National Secured
admission to professional/ technical courses
through Entrance Test/ Selection process
Secured admission to foreign university/
Institution
Existing Customer Submit form New
Customer Submit form Provide guarantor details
Details on next slide
74
Education loan documents

• You will need to furnish the following documents
  along with the completed application form.
  Relevant information would relate to the guardian
  and the student both, when the loan is jointly
  taken. Mark sheet of last qualifying
  examination for school and graduate studies in
  India Proof of admission to the course
  Schedule of expenses for the course Copies of
  letter confirming scholarship, etc. Copies of
  foreign exchange permit, if applicable. 2
  passport size photographs Statement of Bank
  account for the last six months of borrower
  Income tax assessment order not more than 2 years
  old Brief statement of assets and liabilities
  of borrowerIf you are not an existing bank
  customer you would also need to establish your
  identity and give proof of residence.

75
Education loan Verification Processing
SCRUTINY
VERIFICATION
SANCTION
DISBURSAL
Check credit worthiness of customer
/ guarantor Default blacklisted Any other
loans held
Verify the address And office of Customer/guaranto
r Verify the validity of Documents
Collect Post dated Cheques,ECS, Standing
instruction from Customer for
EMI No Processing charge Sanction loan based On
margin
Demand draft is Issued to the Educational
institute
76
Closure of Education Loan
Request
Closure
Ensure all dues are recovered and account
closed No prepayment charges.Recover
all dues and Close customer account.Return post
dated cheques
Loan tenure completed Customer Request
for foreclosure
77
Personal loan

• To meet any kind of personal expenses, e.g.,
  marriage, family functions, medical, educational,
  travel expenses, etc.

78
Personal loan Eligibility

• A State/Central Govt. Employee, employee of
  public sector undertaking/reputed profit making
  public limited company, reputed institutions, MNC
  with a minimum service experience of 2 years.
• A self employed engineer, doctor, architect,
  chartered accountant, MBA, with a minimum 2 years
  standing. You should be 60 years of age or less.
• A Pensioner of PSU/Govt. (Central/State)/Public
  Sector Bank who has taken premature voluntary
  retirement and is 60 years of age or less
• Agents of insurance/KVP/Mutual funds etc. with
  3-5 years standing who are tax assesses and whose
  gross annual income exceeds Rs. 2 lacs.
• Traders, who have cash flows to repay the loans
  and can provide adequate tangible collateral
  security. They should restrict their banking
  requirements to the branch where the loan is
  proposed to be taken.

79
Personal Loan amount

• Loan AmountYour personal loan limit would be
  determined by your income and repayment capacity.
  Minimum Rs.24,000/-Maximum 12 times Net
  Monthly Income for salaried individuals and
  pensioners and 1 year's net annual income in case
  of self employed professionals with the under
  noted ceilings Additionally, your spouse's
  income can be considered in calculating the loan
  amount provided he/she guarantees the loan or the
  loan is taken jointly.
• Salaried individuals and self employed
  professionals Rs.2.50 lacs (Rs.5.0 lacs in
  select Metros and can be further increased to
  Rs.10.0 lacs under certain conditions)For
  pensioners Rs.1.5 lacsFor Traders Rs.1.0 lac
  

80
Documents Required

• Documents Required
• Important documents to be furnished while opening
  a Personal Loan AccountFor existing bank
  customers
• Passport size photograph.From salaried
  individuals
• Latest salary slip and Form 16From Self-employed
  individuals and Professionals
• IT returns for the last two financial years,
• Proof of Professional Qualification Copy of
  highest professionals degree held
• Proof of official address.This can include shop
  and establishment certificate/Lease
  deed/Telephone Bill.

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Repayment

• The loan is repayable in 48 EMI. You are allowed
  to pay more than the EMI if you wish to, without
  attracting any prepayment penalty.
• Processing Fee
• Processing charges are 1 per cent of the loan
  amount. This is amongst the lowest fees in the
  industry. Processing fees have to be paid
  upfront. There are no hidden costs or other
  administrative charges

82
ORIGNIATION OF PERSONAL LOAN
Application
Documentation
Eligibility Criteria

• For Salaried Individuals
• Application Form
• Photograph
• Proof of date of birth
• Proof of Residence
• Salary Slip for last few months
• Proof of work experience
• Bank Statement for last few months (where
• the salary is credited or deposited)
• Form 16
• Signature Verification
• Upfront Processing Fee Cheque (in case of some
• lenders)
• For Self-Employed Individuals
• Application Form
• Photograph
• Proof of date of birth
• Proof of Residence
• Profit and Loss account and Balance Sheet

Existing Customer Submit form New
Customer Submit form Provide guarantor
details Address proof Salary proof

• Salaried Individuals
• Self Employed Individuals

83
Personal loan Verification Processing
SCRUTINY
VERIFICATION
SANCTION
DISBURSAL
Check credit worthiness of customer
Default blacklisted Existing Customer
Verify the address And office of Customer Verify
the validity of Documents
Collect Post dated Cheques,ECS, Standing
instruction from Customer for EMI Processing
charge
Demand draft is Issued to customer
84
Closure of Personal Loan
Request
Closure
Ensure all dues are recovered and account
closed Recover all dues and prepayment
charges Close customer account.Return post dated
cheques
Loan tenure completed Customer Request
for foreclosure
85
Consumer Loan
86
Consumer Loan
87
Loan against Deposit
88
Loan against Securities

• Leverage your investments in shares, debentures,
  public sector bonds and Government securities for
  loans to meet unforeseen expenses!
• Avail of loans up to Rs.20.0 lacs against your
  shares/debentures to enable you to meet
  contingencies, personal needs or even for
  subscribing to rights or new issue of shares.

89
Loan Against Securities

• MarginYou will need to provide a margin amount
  of 50 of the prevailing market prices of the
  shares/ non-convertible debentures be in
• Documents Required
• You will be required to submit a declaration
  indicating
• Details of loans availed from other banks/
  branches for acquiring shares/ debentures.
• Details of loans availed from other banks/
  branches against security of shares/ debentures
• g offered as security

90
Loan against securities

• Purpose
• For meeting contingencies and needs of personal
  nature. Loan will be permitted for subscribing to
  rights or new issue of shares / debentures
  against the security of existing shares /
  debentures. Loan will not be sanctioned for (i)
  speculative purposes (ii) inter-corporate
  investments or (iii) acquiring controlling
  interest in company / companies.

91
Loans against Securities

• Repayment Schedule
• To be liquidated in maximum period of 30 months
  through a suitable reducing DP programme.
• In case of a default or if the outstanding is
  over Rs.20.0 lacs, the shares/debentures will be
  transferred in the name of the Bank.

92
Loan Against Securities

• Essential Parameters for acceptance of shares as
  security i)The equity shares and debentures
  offered as security should be fully paid.
  Preference shares will not be acceptable as
  security(ii)The shares/ debentures offered as
  security must be in demat form.(iii)The share/
  debenture should be of a company listed in BSE
  100 Index, except those of SBI (list of BSE 100
  Index companies is available on
  www.bseindia.com).(iv)The market price of the
  security should not have fallen below par for
  preceding 52 weeks.(v)The market price of the
  security should not be as variance with the
  arithmetical average of preceding 52 weeks high
  and low by more than 25 in downward
  direction.vi)( P/E ratio of the company should
  not exceed 40 as published in Economic Times. In
  case P/E ratio is not available the shares/
  debentures of the company should not be accepted
  as security. (vii)The total number of shares of
  the company traded on NSE and BSE should exceed
  25000 on the day of financing and on each
  preceding 2 days.(viii)Security where the market
  price 52 week high is 4 times of the 52 week low
  should not be accepted.

93
Loan against Securities

• Documentation Application for overdraft limit
  against security of shares/ debentures indicating
  details of shares (i.e. ISIN of the company whose
  shares/ debenture are offered as security, number
  of shares/ debenture offered as security) along
  with borrowers DP ID and DP account
  number.Applicant has to submit consent letter
  agreeing to regularize the account/ replenish the
  margin shortfall, on account of adverse market
  price variation, immediately on receipt of notice
  from the branch. Applicant will also submit
  consent to the condition that in the event of his
  failure to regularize the account immediately,
  Bank has the right to get the security
  transferred in its name and arrange for its sale,
  without any further reference to him. The Bank
  shall exercise this option without prejudice to
  its rights to recover the dues by other means
  also.DP Note and DP Delivery letter.Irrevocable
  Letter of Undertaking addressed to the Bank
  signed by all holders of the shares.Dividend
  collection mandate(s).Either or Survivorship
  Letter(if applicable).

94
Miscellaneous Services

• Safe Deposit lockers
• Credit Cards
• Cheque collection
• Remittance facility
• Internet Banking
• Phone banking
• Demat Facilities

95
Safe deposit lockers

• The facility of Safe Deposit Lockers is an
  ancillary service offered by the Bank. The Bank's
  branches offering this facility will
  indicate/display this information.The major
  aspects governing the services are
• A locker may be hired by an individual ( not
  minor), firms, limited companies, specified
  associations and societies etc.
• Nomination facility is available to individual
  hirer of Safe Deposit Locker.
• Loss of key should be immediately informed to the
  Branch.
• Lockers are available in different sizes.
• Lockers are rented out for a minimum period of
  one year. Rent is payable in advance. In case of
  overdue rent, the Bank will charge penalty as
  decided from time to time.
• With standing instruction, the rent may be paid
  from the deposit account of the hirer.
• The Bank will hire locker only to properly
  introduced persons.
• The Bank reserves right to break open the locker
  if the rent is not paid inspite of giving notices
  as per the Bank rules and recover charges
  thereof.
• The locker can be surrendered by the hirers as
  indicated in Memorandum of Letting.

96
Internet Banking

• Internet Banking" refers to the internet banking
  service offered by the Bank to the user including
  services such as enquiry about balance in the
  Account, details about transactions in the
  Account(s), statement of Account, transfer of
  funds and any other service as the Bank may
  decide to provide from time to time through
  internet.
• The customer will be given a user id and password
  at the time of opening his account.
• This id password enables the customer to
  access his bank account through the bank website
  on the internet.

97
Phone Banking

• The customer will also be given a specific
  telephone code at the time of account opening.
• With this code the customer can access his bank
  account by calling the help line phone number to
  know his bank balance, make bill payments,account
  to account transfer within the same bank,request
  for Demand draft,cheque books etc

98
DEMAT SERVICES

• Depository Participant ServicesDepository is an
  organization, which holds your securities in the
  form of electronic book entries. This will be
  done at the request of shareholders through the
  medium of a Depository Participant (DP). If an
  investor wants the services of a Depository, he
  has to open an account with the DP. Further, a
  depository transfers securities as per the
  investor's instructions without actually handling
  securities, through the electronic mode. The DP
  will maintain the account balances of securities
  bought and sold by the investor from time to
  time. The DP will also give the investor a
  statement of holdings, which is similar to a
  passbook.

99
DEMAT ACCOUNT

• Depository Account OpeningAn investor needs a
  satisfactory introduction and identification to
  open a Demat account with our DP.Every account
  holder in our Bank can open a Demat account. An
  investor has to fill up an Account Opening Form
  and execute an agreement with the DP for opening
  a Demat account.

100
DEMAT SERVICES

• Benefits of holding Shares in Electronic form
  Transactions take place much faster in electronic
  trading compared to a 30-60 days settlement cycle
  that is presently experienced. Transfer of shares
  is effected within a few days after payment is
  made. Elimination of bad deliveries and all
  risks associated with physical certificate such
  as loss, theft, mutilation, forgery, etc. Easy
  liquidity. No stamp duty on transfer. No
  postage/courier charges. Faster disbursement of
  corporate benefits like rights, bonus, etc.
  Facility for creating charge on dematerialized
  shares for granting loans and advances against
  shares

101
DEMAT ACCOUNT

• Account opening An investor (investors are
  called Beneficial owners in Depository system)
  intending to hold securities in the electronic
  form in the Depository system will have to open
  an account with a DP of NSDL. The investor has to
  fill up an account opening form and sign an
  Agreement. The investor can open multiple
  accounts with same DP as also with different DPs.
  The DP will provide the investor a statement of
  holdings and transactions. In case the shares are
  held in joint names then the account is to be
  opened in the same order of names. Separate
  account needs to be opened for each combination
  of names

102
Dematerialisation/Rematerialisation

• Dematerialisation is the process by which an
  investor gets his physical certificates converted
  into electronic form and reflected in his account
  with the DP. One has to just fill in
  Dematerialisation Request Form available with his
  DP. Submit his share certificates along with the
  above form (legend like 'Surrendered for
  Dematerialisation' should be written on the face
  of each certificate before its submission for
  Dematerialisation). The beneficial owner's
  account will be credited with in 15 days and he
  will be informed by the DP. In one whishes to
  convert his electronic shares back to physical
  shares at a later stage, he can still do so by
  applying for rematerialisation through a
  Rematerialisation Request Form available with his
  DP. The new rematerialized certificates with new
  range of certificate number may use existing
  Folio number or a new folio number for the
  certificates.

103
Electronic Trading

• Trading in the Depository mode takes place in
  the following manner If the investor wants to
  sell his shares, he has to place an order with
  his broker and give a "Delivery Instruction" to
  his DP. The DP will debit his account with the
  number of shares sold by him. If one wants to
  buy shares, he is to inform his broker about his
  Depository Account Number so that the shares
  bought by him are credited into his account.
  Payment for the electronic shares bought or sold
  is to be made in the same way as in the case of
  physical securities. The shares one buys are
  transferred in his name promptly after he makes
  the payment. No formalities of filling transfer
  deeds, affixing stamps and applying to the
  Company for registering the shares in Beneficial
  owner's name are required to be observed, neither
  there is any fear of bad delivery.