LOAN APPRAISAL PROCESS IN TJSB SAHAKARI BANK LTD. CRBC, NAUPADA

1. NCRD’S STERLING INSTITUTE OF MANAGEMENT STUDIES
“RETAIL BANKING SYSTEM IN INDIA”
PRESENTED BY:
VARSHA GOLEKAR
MMS-II (FINANCE)
A-18

2. Overview Of Bank Performance
In Last Five Years

3. RETAIL BANKING SYSTEM
Retail Banking in Retail Stores Way…
AS IS / BEFORE TO BE /NOW
PRIORITY Credit & Risk Customers & retailing
APPROACH Secure & conventional Customer centric retail
location for financial banking
transactions (Customer is King)
(Banks dictate terms)
CUSTOMER BASE Corporation & other banks Retail consumers,
corporate clients, other
banks
FORMATS Single Entity Multi-location, multi
branch
MORE EMPHASIS Improving transactional Providing service and
ON
efficiency value to consumers
CUSTOMIZATION Rarely there Highly customized

4. PATH FORWARD FOR RETAIL BANKS
RETAIL BANK OF TODAY – COMPLEX BANK RETAIL BANK OF FUTURE – LEAN BANK
“LEADERS”
Retail banks needs
P to identify their
focus area and build
capability in one or
two only.
Product
leader D U
“LAGGARDS”
Utility Retail banks,
Distributor Processor continuing to
pursue “ a doing
P everything
approach” will not
be able to build
D U strong capability in
all models.

5. Retail Banking
Product
Portfolio
Deposit Loans & Advances Services
Fixed deposit Housing Loan (Sadasavli Credit card
Housing Loan)
Saving account
Personal Loan
Debit card
Current Account
Vehicle Loan (Auto- Net bankingMobile
Recurring Account Finance Loan) banking
NRI Account Education Loan Phone banking
Corporate Salary Professional Loan
Account ATM
Loan against share
Demat Account Smart card
And securities
Minor Account
Swayam siddha loan 24*7 cheque issuance
Senior Citizenship facility
Account Kalpataru Consumer
finance
Travel Now

6. MULTI-STATE SCHEDULED CO-OPERATIVE BANK
INCORPORATION: 1972
BRANCHES: 64
PROJECT PLACE: CENTRALIZED RETAIL BANKING CELL (CRBC) , NAUPADA.
Techno-savvy Bank
Multiple delivery channels such as ATM, Internet, Mobile
First Bank in Co-operative sector to install Cheque Depository Machines and Automated
Cheque Issuance Machine at 63 branches, which are operational 24 X 7
Bancassurance: Agent for Max New York Life Insurance Co. Ltd. for Life Insurance products
and with The Oriental Insurance Co. Ltd. for General Insurance

7. PROCESSING OF RETAIL LOANS
Processing
Model
Stand Alone Centralised
Model Model
Refers to processing of retail loans
independently at the branch level. Refers to processing of loans at
Branch will market the retail loans and a centralised place depending
process and sanction the loans based upon the geography of
on the eligibility of the applicants. branches.

8. WORKFLOW OF CENTRALIZED RETAIL BANKING CELL, TJSB
The valuation
Receipt of application
Verification check and (wherever applicable)
and details from the Process the application
arrive at credit score through the panel
branch
valuer
Advising the sanction of
Obtain the
Receiving acceptance the loan to the Arrive at the quantum
Encumbrance Certificate
for the terms and borrower/branch with of finance based on
and legal opinion from
conditions the terms and type of loan
lawyer
conditions
Execution of documents
Auditing is done by
for the loan and also
Release of the loan to Verification of end use auditors on weekly
completing the
the borrower by the borrower basis sometime daily
mortgage formalities
basis.
(wherever applicable)

9. IMPORTANT THINGS YOU NEED TO KNOW BEFORE APPLYING FOR
LOAN
You may not be offered the rate you see advertised
A secured loan is held against your property
Disbursement time of bank
The best rates are available to those with the best credit
scores
The longer the term, the more interest you'll pay
A credit card may be a better option for short term lending
It can cost you to pay back the loan early
There may be other hidden fees
Service , processing charges, private equity, franking
charges, insurance charges
Your repayments may be variable – Fixed or Floating
You don't have to buy PPI when you take out a loan

10. GENERAL DOCUMENTS REQUIRED FOR LOAN APPRAISAL PROCESS

11. 1. Promissory note
2. Term loan agreement
3. Deed of guarantee
4. Section 60 – Borrower,
GENERAL DOCUMENTS
Guarantor
5.Letter of Lien and set off
6. Post dated cheques
Housing Personal Education
loan Loan Loan
1. Society NOC
2. Sale deed 1. End use
declairation 1. Institute fees
3. Title Deed structure
4. Valuation Report Supporting
Doucuments 2. Fee receipt
5. Credit Report
3.Educational
6. Non encumbrance
certificate Certificates
7. Mortgage deed Other supporting
Other supporting
document
documents

12. RETAIL BANKING RISK
• Losing Money • Customer Fall to
• Wrong Strategy Pay
BUSINESS CREDIT
RISK RISK
OPERATING MARKET
RISK RISK
• Processing Failures • Change in
& Frauds
• Regulatory Compliance Market Price

13. RECOVERY OF LOAN
Recovery Policy clauses - Approaches to
recovery of loan, general guidelines
Giving notice to Borrowers- Written
communication, telephonic reminders or
visits by TJSB bank recovery agent
Repossession of security- To recover dues
and not to deprive the borrower, realisation
of security after notice to borrower
Valuation and Sale of property- Sale of
repossessed property by TJSB bank -
opportunity for borrower to repurchase the
property

14. DATA ANALYSIS AND INTERPRETATION
OF
TJSB SAHAKARI BANK LTD.

15. Outcome Here
• TJSB’s deposits has increased by 25.16% -
shows opportunities for further growth.
• Advances has increased by 32.55% in 2012,
shows retail segment growth
• Gross NPA has decreased and CRAR has also
decreased by 0.61%. It also reflects the
efficacy of banks’ credit risk management and
the recovery environment.
% Increase/Decrease
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
-5.00%
Deposits Advances Net Profit Gross C.R.A.R
N.P.A
% Increase/Decrease 25.16% 32.55% 21.20% -0.79% -0.61%