CONTENTSSR. NOPARTICULARSPAGE NO

PART -A

1EXECUTIVE SUMMARY3

2INDUSTRY PROFILE4-6

3COMPANY PROFILE7-8

a) Background and inception of the company9-10

b) Nature Of Business Carried11

c) Vision and Mission11

d) Product/service profile12-22

e) Area of operation23

f) Ownership pattern24

g) Competitors information25

h) Infrastructure facilities 25

i) Achievements & Awards26

j) Work Flow Model27

4MC KINSEYS 7S MODEL28-30

5SWOT ANALYSIS31

6FINANCIAL STATEMENT32-33

7LEARNING EXPERIENCE34

PART- B

1GENERAL INTRODUCTION36-52

2RESEARCH STUDY53

a) Statement of the problem53

b) Objectives of the study53

c) Scope of the study53

d) Methodology54

e) Limitations of the study54

3ANALYSIS AND INTERPRETATION OF THE DATA55-63

4FINDINGS & OBESRVATION64

5SUGGESTIONS & CONCLUSION65-66

6BIBLIOGRAPHY69-70

Executive summary:Canara Bank is a leading public sector bank established on July 1, 1906 in the town of Mangalore in Karnataka by Shri Ammembal Subba Rao Pai, an eminent lawyer, educationist and social reformer. The bank has already completed 100 years of service. It provides all sorts of financial services ranging from loans to insurance. The report basically deals with the organization study of Canara bank. It mentions about the brief introduction to banking industry, . In India the banking sector is segregated as public or private sector banks, cooperative banks and regional rural banks , the financial institutions (FIs), encompassing term- lending institutions, investment institutions specialized financial institutions and the state-level development banks, Non Bank Financial companies (NBFCs) and other market intermediaries such as the stock brokers and money lenders.

Title of the project

The study and Analysis of Loans and Advances At Canara bank Ankalgi branch, Analagi.The study is mainly on Analysis of Loans & Advances at Canara Bank Ankalgi Branch Ankalgi. this project report is intended to Examine the Bank lending & borrowing procedure of cash , types of loan products and interest rates, and also know the amount loan has been sanctioned by the bank.

1) INDUSTRY PROFILEBanking in India has an early origin where the indigenous bankers played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company, was the turn of the agency houses to carry on the banking business. The General Bank of India was first Joint Stock Bank to be established in the year 1786. The others which followed were the Bank Hindustan and the Bengal Bank. In the first half of the 19th century the East India Company established three banks; the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in 1843. These three banks also known as Presidency banks were amalgamated in 1920 and a new bank, the Imperial Bank of India was established in 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken by the newly constituted State Bank of India. The Reserve Bank of India which is the Central Bank was created in 1935 by passing Reserve Bank of India Act, 1934 which was followed up with the Banking Regulations in 1949. These acts bestowed Reserve Bank of India (RBI) with wide ranging powers for licensing, supervision and control of banks. Considering the proliferation of weak banks, RBI compulsorily merged many of them with stronger banks in 1969. Despite increasing competition, public sector banks continue to dominate. Large scale of operations bestows upon them a higher bargaining power enabling them to play a dominant role in the liquidity and interest rate levels in the system. However, the scenario in the future may undergo a change with the growth of the new private sector banks. These banks are in a more advantageous position because of their superior technology-based operations, lower manpower and a lower Non-Performing Assets (NPA) level.

OUTLOOK The banking scenario in the country has been undergoing a qualitative shift towards international. The future, therefore, seems to be exciting, but only for those who can withstand the stress and strain that the reforms bring along. As banks expand their fee-based income by offering various services including distribution of mutual funds, investments and insurance products, the reach and responsive services takes center stage. Also with more financial instruments gaining market acceptance, traditional advances are likely to give way to investment in innovative instruments. The banking industry needs to cut flab across the board, improve service conditions, capitalize on their large client base for fee-based income and retain their customers amidst hectic competition. With price wars slowly taking place, particularly after lending below Prime Lending Rate is allowed, stronger players will emerge successful in the long runCommercial Banks at a glance

ParticularsJun-2011Jun-2012

No. of Commercial Banks295298

All Scheduled Commercial Banks291294

of which, Regional Rural Banks196196

Non-Scheduled Commercial Banks*44

No. of Bank Offices6669266355

Rural3223132394

Semi-Urban1487514727

Urban1084110578

Metropolitan87458656

* Indicates Local Area BanksSource: Reserve Bank of India

2)COMPANY PROFILE

Widely known for customer centricity, Canara Bank was founded by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port in Karnataka. The Bank has gone through the various phases of its growth trajectory over hundred years of its existence. Growth of Canara Bank was phenomenal, especially after nationalization in the year 1969, attaining the status of a national level player in terms of geographical reach and clientele segments. Eighties was characterized by business diversification for the Bank. In June 2006, the Bank completed a century of operation in the Indian banking industry. The eventful journey of the Bank has been characterized by several memorable milestones. Today, Canara Bank occupies a premier position in the comity of Indian banks. With an unbroken record of profits since its inception, Canara Bank has several firsts to its credit. These include: Launching of Inter-City ATM Network Obtaining ISO Certification for a Branch Articulation of Good Banking Banks Citizen Charter Commissioning of Exclusive Mahila Banking Branch Launching of Exclusive Subsidiary for IT Consultancy Over the years, the Bank has been scaling up its market position to emerge as a major 'Financial Conglomerate' with as many as nine subsidiaries/sponsored institutions/joint ventures in India and abroad. As at September 2009, the Bank has further expanded its domestic presence, with 2802 branches spread across all geographical segments. Keeping customer convenience at the forefront, the Bank provides a wide array of alternative delivery channels that include over 2000 ATMs- one of the highest among nationalized banks- covering 715 centers, 1591 branches providing Internet and Mobile Banking (IMB) services and 2084 branches offering 'Anywhere Banking' services. Not just in commercial banking, the Bank has also carved a distinctive mark, in various corporate social responsibilities, namely, serving national priorities, promoting rural development, enhancing rural self-employment through several training institutes and spearheading financial inclusion objective. Promoting an inclusive growth strategy, which has been formed as the basic plank of national policy agenda today, is in fact deeply rooted in the Bank's founding principles. "A good bank is not only the financial heart of the community, but also one with an obligation of helping in every possible manner to improve the economic conditions of the common people". These insightful words of our founder continue to resonate even today in serving the society with a purpose. The growth story of Canara Bank in its first century was due, among others, to the continued patronage of its valued customers, stakeholders, committed staff and uncanny leadership ability demonstrated by its leaders at the helm of affairs. We strongly believe that the next century is going to be equally rewarding and eventful not only in service of the nation but also in helping the Bank emerge as a "Global Bank with Best Practices".

3) Organizational profile CANARA BANK

Type : Public Ltd

Industry : Banking, Financial

Founded : July 1906

Address : Canara Bank Ankalgi

Phone Number :8332-262245

Headquarters Bangalore, Karnataka, India

Corporate office : Hubli

Key people : Shri. R.K. DUBEY(Chairman and MD)

Manager : J .S. MURTHY (Branch manager)

Products:Financeandinsurance ConsumerBanking CorporateBanking InvestmentBanking InvestmentManagement Mutualfunds Mortgages Credit Cards

Employees : 11

Head Office : Bangalore.

Website : www. Canarabank.com

A.BRIEF HISTORY:HEAD OFFICE

Founded as 'Canara Bank Hindu Permanent Fund' in 1906, by late Shri Ammembal Subba Rao Pai, a philanthropist, this small seed blossomed into a limited company as 'Canara Bank Ltd.' in 1910 and became Canara Bank in 1969 after nationalization.

"A good bank is not only the financial heart of the community, but also one with an obligation of helping in every possible manner to improve the economic conditions of the common people" -A. Subs Rao Pai.

Founding Principles1. To remove Superstition and ignorance.2. To spread education among all to sub-serve the first principle.3. To inculcate the habit of thrift and savings.4. To transform the financial institution not only as the financial heart of the community but the social heart as well.5. To assist the needy.6. To work with sense of service and dedication.7. To develop a concern for fellow human being and sensitivity to the surroundings with a view to make changes/remove hardships and sufferings.Sound founding principles, enlightened leadership, unique work culture and remarkable adaptability to changing banking environment have enabledCanara Bank to be a frontline banking institution of global standards.

B) Nature of the business carried Financial services Banking

C) Vision and Mission of Canara Bank VisionTo emerge as a Best Practices Bank by pursuing global benchmarks in profitability, operational efficiency, asset quality, risk management and expanding the global reach.

MissionTo provide quality banking services with enhanced customer orientation, higher value creation for stakeholders and to continue as a responsive corporate social citizen by effectively blending commercial pursuits with social banking OBJECTIVES OF CANARA BANK The objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer segments, and to achieve a healthy growth in profitability, consistent with the Banks risk appetite. Increase the market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Maintain our current high standards for asset quality through disciplined credit risk management. Focus on high earnings growth with low volatility. Continue to develop products and services that reduce our cost of funds. Develop innovative products and services that attract our targeted customers and address inefficiencies in the Indian financial sector.

D) Products & services Profile Savings and deposits Loan Products Technology Products Mutual Funds Insurance Business Card Services Consultancy Services Depository Services Ancillary Service Savings and Deposits Savingsbankaccount

Kamadhenu deposit (re-investment plan)

SB gold scheme (cbs branches only)

Canara tax saver scheme

Canara champ deposit scheme

Recurring deposits

Canara Saral savings account

Special recurring deposit scheme

Current account

Ashraya deposit scheme (for senior citizens)

Can premium current account (cbs branches only) Canara auto renewal deposit (card)

Fixed deposit

Canara super savings salary account scheme

Loan products Housing loan

Home improvement loan

Canara cash (shares)

Caar mobile (vehicle)

Canara site loan

Canara budget(for employed/business)

Canara pension

Teachers loan

Sworna loan(gold loan)

Canara rent

Canara mortgage

Canara guide

Canara jeevan

Doctors choice

For online education loan

TECHNOLOGY PRODUCT ATM cum-Debit CardFacilities Availablei. Transactions through our bank ATM and other bank ATMii. Purchase of goods and services at POS Merchantiii. Mobile Top-upiv. VISA money transferv. E- ticketing

Types of accounts SB/CA/OD accounts in the name of individuals as well as joint accounts (operated severally).Application Account holders desirous of having an ATM-CUM-DEBIT card are required to submit an application in the prescribed format to the branch manager of the branch where the account is being maintained.Operations The card can be linked to a maximum of 4 accounts. However, one account as indicated by customer will be designated as Primary Account. All transactions done at POS merchant locations and at other Bank ATMs will be debited to Primary account to which the card is linked. Therefore transactions at other Bank ATM and POS are restricted to the balance available in the primary account.Per Day Transaction Limit Per day transaction at POS Merchant Establishments: Rs 20,000/- Cash withdrawal at our ATM/ Other Bank ATM:Rs 20,000/- Validity 10 years from date of issue of the card. An Inter-bank funds transfer facility for customers Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer System (NEFT) are two efficient, secure, economical, reliable system of funds transfer from Bank to Bank. Now fund transfer can be made to more than 36000 Bank branches across India. These facilities are available in more than 1650 branches of Canara Bank (addresses and IFSC codes are available in our website under 'locator') as of now and Bank has planned to enable all its branches for RTGS /NEFT by 31.3.08Brief details on Real Time Gross Settlement (RTGS) An electronic payment system in which payment instructions between banks are processed and settled individually on a real time basis Minimum amount of funds transfer under this facility is Rs.1,00,000/- RTGS SYSTEM WORKS ON ALL DAYS EXCEPT ON SUNDAYS AND NATIONAL HOLIDAYS Charges refer to details under service charges in our website. Customer should furnish details of payees name, bank account number and type, receiver bank name , branch name and IFSC code of the receiver Bank branch.Brief details on National Electronic Funds Transfer (NEFT): Another electronic payment system in which payment instructions between banks are settled at fixed intervals There is no minimum / maximum limit for transactions under NEFT. NEFT SYSTEM WORKS ON ALL DAYS EXCEPT ON SUNDAYS AND NATIONAL HOLIDAYS Charges refer to details under service charges in our website. Customer should furnish details of payees name, bank account number and type, receiver bank name , branch name and IFSC code of the receiver Bank branch.CANSPEED

ELECTRONIC FUND TRANSFER FACILITY INCORPORATING

REAL TIME GROSS SETTLEMENT (RTGS) / NATIONAL ELECTRONIC FUND TRANSFER (NEFT)

These schemes enable an efficient, secure, economical and reliable system of transfer of funds from remitters account in a particular bank to the beneficiarys account in another bank across the country RTGS/ NEFT are the two schemes for transferring funds instantly to other Bank branches electronically at cheaper rates RTGS: An electronic payment system in which payment instructions between banks are processed and settled individually and continuously, on a real time basis during business hours. Minimum transaction value is Rs.1.00 lack. NEFT: Another electronic payment system in which payment instructions between banks are processed and settled on deferred net settlement (DNS) basis at fixed times during the day. There is no minimum or maximum transaction value for using this facility.

Mutual FundsCanara bank has tie up Canara Robaco and HDFC AMC for cross selling of their mutual fund products through our branches. Investment can be made in following schemes. CANARA ROBECO Mutual Fund Products HDFC Mutual Fund Products

Insurance Businessa) "Participation by the Bank's customers shall be purely on a voluntary basis"b) "The contract of insurance is between the insurer and the insured And not between the Bank and the insured General Insurance Life InsuranceCard Services.Canara card is a global credit card from the house of Canara Bank, one of the leading Banks in India, with around 2700 Branches and 34 million loyal customer base. In tune with our tradition of offering quality products with competitive features and best customer service, we are delighted to introduce you to the Canara Global credit Cards, offered to the privileged & elite people of the society. Canara Card is designed to meet your high-end life style with anything you might need to make your experience a sheer pleasure. No matter where you are across the world, luxury and comfort is always at hand.Our cards enjoy the privilege of worldwide acceptance and free insurance coverage. Canara Cards are backed by a wide network of Canara bank branches and 24 card service centers located at many important cities spread across the country. Canara bank is the principal member of visa-worldwide and master card inc.With its fantastic features and transparency in transactions, you will be delighted to know, why you chose the right card. Please read further to know more about Canara Global cards.

Consultancy Services Canara Bank has been in the forefront in extending various need based ancillary services to customers. One such specialized service is the Executor, Trustee, Taxation and Attorney ship services that the Bank has been offering for more than three decades now. A later unique addition to our services to the Corporate Sector is the Debenture Trustee services and Security Trustee services.These services are unique in nature and are not available at several other banks.These services are aimed at caring for the personal needs of the customer and enhancing customer satisfaction. For example, drawing up a Will andacting as executor of the Will for a customer, which is crucial to a person's wealth and assets, gives him a great relief and confidence.ADVANTAGESthe advantages of appointing the Bank as Executors and Trustees are as follows: Continuity of management: By appointing the bank as Executor/Trustee, the testator or the author of a Trust gets completely relieved of any anxiety of proper management and fulfillment of his wishes. Individuals do not manage administration; instead, the same is taken care by a full complement of officers. Efficient administration Long experience & Professional training Courtesy and impartiality, Secrecy, Safety and Security. Depository Services

What is a depository?

A Depository is an organization which holds investors' securities in electronic form. The depository also provides services related to various transactions in such securities. A depository interfaces with its investors through Depository Participants. Depository Participants maintain investors' accounts (Demat accounts) which are similar to Savings Bank/Current accounts with a Bank. Purchase and sale of securities can be done through Demat account.

Why de-mat account Shares are held in electronic form No need to safe keep share certificates. No need to remember record dates of various companies Immediate transfer of securities No stamp duty on transfer of securities Risk of bad delivery, fake securities eliminated Reduced paper work for transfer of securities Reduced transaction cost Nomination facility available Automatic noting of change of address Easy transmission of securities Automatic credit of Dividend / bonus shares Why Demat account with Canara Bank Multi location services across the country Competitive charges Customer friendly service Ideas (Internet based Demat Account Statement) facility available for viewing and downloading transaction statements from internet. Services available Account opening De-materialization Transfer of securities Pledge services Freezing and un-freezing the depository account Nomination facility Ancillary ServicesSAFEDEPOSITLOCKERS Keep your valuables in our lockers and have peace of mind. Lockers available at select branches where Safe Deposit Vaults are installed. Bank lets on hire safe deposit lockers to individuals (Singly or jointly), Firms, Companies, Association or Clubs, Trustees on nominal rent. SAFE CUSTODY SERVICES This subsidiary service is rendered by the Bank to most valued customers. Bank undertakes the responsibility of safe custody of articles entrusted By the Customer under a contract and return the same according to terms agreed upon. NOMINATIONS This facility has been devised with an aim of minimizing the hardships caused to the family members on the death of the depositor/s. Nominations can be made in respect of all types of deposit accounts by the individual account holders in their own capacity singly or jointly. DD SHOPPE Get your demand drafts through our exclusive DD outlets. Our DD Shoppe issues demand drafts Up to one hour before close of office hours. Facility Available at Selected Branches.Accounts and Deposits]

Current Deposits

Fixed Deposits

Kamadhenu Deposits

Recurring Deposits

Cash Managements ServicesThe speedier you are, its easier for you to address the challenges of Globalization. Corporate Cash Management Services (CCMS), an innovative service offered by Canara Bank for speedy collection of Cheques and other instruments, places Corporate on a faster-track. In more ways than one-such as definite funds flow, better cash management and deployment of funds, better monitoring of funds flow, optimum allocation of funds and effective planning of investment functions.

Syndication Services A new value added fee based service of the Bank for Corporate. Supported by a pool of experienced professionals with Engineering and Finance background. Strong underwriting capabilities of the Bank. The services shall be either on Best Efforts basis or on Underwriting basis. Direct participation in projects syndicated. An end to end project finance solution provider. Reasonable fee structure.E) Area of operation RegionalAt present Canara bank is operating Karnataka state and opened branches all over Karnataka state. It is biggest and fastest growing organization in Karnataka state. Recently they are planning to enter into the other states.F) Ownership pattern

BOARD OF DIRECTOR Chairman and Managing Director : Sri R.K DUBEY Executive Director : Smt ARCHANA. S BHARGAVA Executive Director : Sri. ASHOK. KUMAR GUPTA Director Representing Govt of India : Sri SUDHA. KRISNA Director Representing RBI : Smt HEMACHANDRAWorkmen Employee Director : Sri G.V SAMBASIVAOffice Employee Director : Sri G.V MANIMARANPart Time Non Office Director : Sri K.L BILGRAMIPart Time Non Office Director : Sri SUTANUSINHA Director Representing Shareholder : Sri P V MAIYA

G) Competitor information Sl. NoBankpersonalagricultureOther loans

1Canara Bank10.25%10.75%13%

2SBI10.40%7.00%13%

3Syndicate9.5%10.25%13%

4Corporation16.00%9.00%13%

5KVG7.5%4.00%12 %

H) Infrastructural Facilities Good sitting arrangement to workers Internet banking facilities Window 7 software facility for workers Periodically send to employees Hubli for training their knowledge Information Technology(core banking solutions, ATM network, internet banking, SMS banking, electronic payment settlement through NEFT&RTGS, payment gateway, DATA warehouse)

I) Achievements AwardsAwards and Achievements during 2012-13 Canara Bank received 2nd Runner Up award for 'Best Online Bank' among Public Sector Banks at IBA Banking Technology Awards 2011 Canara Bank received 2nd Runner Up award for 'Best Customer Relationship Initiative' among Public Sector Banks at IBA Banking Technology Awards 2011 Canara Bank received IDRBT Best Bank Award among Large Banks for "Use of Technology for Financial Inclusion" from the hands of RBI Governor Dr. D Subba Rao.Service Units Package First Bank to introduce Centralized Solution for Service Units (CSSU), developed in-house adopting the latest technology in the I.T. IndustryAwards and Achievements during 2011-12 Under theimplementation of Rajbhasha, the Bank received Indira Gandhi Rajbhasha Puraskar Yojna-2009-10 - Encouragement Prize. NABARDs Best Performance Award, 2010-11, for SHG Credit Linkage andBest Performing Farmers Club Awardof NABARD, 2010-11, in Karnataka.The Bank was conferred 5 Awards by thePublic Relations Council of India (PRCI), in the following categories

J) WORK FLOW MODEL (END TO END)

3) Mckenys 7S frame work with special reference to organization under study

StrategyStrategy of Canara bank is to strengthening the overall agricultural sector in the district and to provide financial support for the rural development. For this purpose bank is raising funds th through agricultural credit co operative societies rough share capital, deposits and from NABARD through Apex bank and lending money through agricultural credit co operative societies. StructureSystem

System in the 7-S framework refers to all the rules regulation and procedure both formal & informal that complements the organization structure. It includes planning and control system, capital budgeting system, recruitment training & development system, and performance evolution system.StyleLeadership style in Canara bank is of free rain.It has top to bottom or top down system style.All the major decisions are taken by the board of directors.Staff Total number of staff in Canara bank is 11.SkillsIn the Mc Kinsey 7-S framework, skill is one of the most crucial attribute or capabilities of an organization. The term skill includes those characteristics, which most people use to describe a company. In other words skill refers to dominant skills or distinctive competence of an organization.Staff is Canara bank is highly qualified in accounting writing skills which are very essential for providing banking services. Rural orientation is one of the essential skills present with Canara bank Ankalgi.Shared valuesThe core or fundamental values that are widely share in the organization and serve as guidelines that are important, these values have greater meaning because they focus attention and provide broader since of purpose.The values of Canara Bank are:Welfare of the weaker section of the society. Customer satisfaction. Mutual respect & trust in working relationship

4] SWOT Analysis Strength2. Technologically advance.3. Strong location infrastructure.4. Quality processed procedures.5. Quality process and procedures.6. A new innovate product or services.

Weakness1. Insufficient capital many restrict the growth prospects of the bank going prospects of the bank going forward.2.Undifferentiated products or services3. Customer service is lesser as compared to other banks

Opportunity1. Rural and social banking2. Moving in to new market segments that offered improved profit.3. Scope for banking industry and demand for banking services.

Threats1. Price wars with competitors.2. Changing Got and RBI policies3. Changing Technological Drives4. Launch of new products by the competitors5. Analysis of Financial StatementBALANCE SHEET (Of Canara Bank Three years)Analysis of Balance Sheet Three yearsAccording to the balance sheet of the canara bank there is increase in the share capital. During 2012 the company as sanctioned more loan compared to last year. During this year the profit has increased. The companys reserves and surplus is also showing good increase. But during this year fixed assets have reduced and deposits increased during three year advances increased. And investments also increased during last three year. LiabilitiesMar 2012Mar 2011Mar 2010

Capital and Liabilities:

Total Share Capital443.00443.00410.00

Equity Share Capital443.00443.00410.00

Share ApplicationMoney0.000.000.00

Preference Share Capital0.000.000.00

Reserves20,181.8217,498.4612,129.11

Revaluation Reserves2,065.142,098.362,132.68

Net capital liability22,689.9620,039.8214,671.79

Deposits327,053.73293,972.65234,651.44

Borrowings15,525.3914,261.658,440.56

Total Debt342,579.12308,234.30243,092.00

Other Liabilities & Provisions8,891.127,804.646,977.30

Total Liabilities374,160.20336,078.76264,741.09

AssetsMar 2012Mar 2011Mar 2010

Cash& Balances with RBI17,795.1422,014.7915,719.46

Balance with Banks, Money at Call10,384.278,693.323,933.75

Advances232,489.82212,467.17169,334.63

Investments102,057.4383,699.9269,676.95

Gross Block4,858.374,686.154,480.37

Accumulated Depreciation2,000.841,841.741,620.99

Net Block2,857.532,844.412,859.38

Capital Work In Progress0.000.000.00

Other Assets8,576.016,359.153,216.92

Total Assets374,160.20336,078.76264,741.09

6. LEARNING EXPERIENCEThe organizational study under Canara bank Ankalgi is a unique experience. Managing such huge organization is not an easy task. Where all function of management practically applied and implement in day to day workings. Planning, organizing, co-ordination and implementation, communication, delegations are some of the functions are experienced in this study. Management lesson are learned and practically seen under the training of MISS. J S MURTHY MANAGAR OF CANARA BANK ANKALGI. I have learnt the procedure to open the SB account. I have learnt many things about recurring deposits, fixed deposit and various schemes. This helped me to understand the banking norms and procedures for common man.

1) A.GENERAL INTRODUCTION:

Introduction to loan & advances The making of loans and advances has always been the prominent and profitable function of a bank. Sanctioning credit to customers and others out of funds at its disposal is one of the principal services of a bank. It is the advances, which bring most of the earnings for a bank and establish valuable ties with the community. An effective loan policy provides funds to the vital sectors of the economy development. Principles of Lending:When a banker is approached for a loan he has to keep his eyes and earns wide open. Apart from appraisal of individual loan proposal, there are some general principles, which should guide him determining whether a proposed loan is desirable, irrespective of whether or not security is offered. It has been stressed throughout that a banker doesn't lend only because the advance will be secured many other consideration influence his decision. Safety, liquidity and profitability have been major plans or cardinal principles of banks lending. The banker has to trade-of between high safeties, high income. The perfect balance between them requires effective bank management. The principles are as follows1. Safety2. Liquidity3. Diversification of risk4. Profitability5. Purpose oriented

1. Safety: For a banker, the celebrated principle in holding asset is "safety first" Nothing is more important to him than the preservation of principal sum advanced. In fact by safety is meant the ability of the borrower to repay the principal and interest thereon according to the terms and conditions provided in the loan agreement.

2. Liquidity: The next principle of sound commercial bank lending is that the advances should be liquid. The assets should be readily into cash without much loss of value, which temporary advances granted to finance some purchased of stock, raw-material etc. this is what is referred to "real bills doctrine"-repayment out of the sale proceeds of the very assets which banks accommodation helped to finance. 3. Diversification of Risks:It is another important principle of sound lending is that the banker should hold loan assets of diversified character. So as to reduce the degree of credit risk. It should be one of the banker's axioms to advance relatively moderate sums to many customers rather than large sums to few customers. Loans are also tied to be diversified with respect to maturity, security and the type of the borrowers.

4. Profitability:A significant matter for consideration is the remunerative of the advance i.e. the yield which the particulars advance is going to give to the banker. The rate of interest to be charged has to be commensurate with the risk involved in loan. The objective of profitability has to be moderated by safety and liquidity of funds and than by national policies as lay down by the government and the central bank.

5. Purpose oriented:The next information should be required id the purpose of the loan. Normally the banks should not finance unproductive, consumption loans, else extend short-term credit for movement of goods and other productive purpose. Commercial banks are generally expected to make available ways and means of accommodation working capital advance and not to finance fixed assets formation Just as the disbursement of the repayment of the loan is made in one lump sum (repayment of the loan in installment is also permitted)

Loans & AdvancesA) Personal loans The Bank is meeting varied personal credit requirements of different classes of people through the following loan schemes under personal banking. Canmahila. Housing Loan. Home Improvement Loan. Can carry. Can cash. Can mobile. Can budget. Teachers Loan.Can mahila: A Loan Scheme exclusively designed for the benefit of women. Loan for women Aged between 18 and 55 years, Married or single, Working or not (housewives also), Engaged in business or self employed. To meet any personal financial needs, viz., for buying household articles, gold jewelers, computers, gift articles, etc. No Security required in case of working women, however, in respect of a non-working woman, for loan amount exceeding Rs.25,000./-, co-obligation of husband / parent / son is insisted. Interest 11.5% p.a. - EMI Rs.329/- per ten thousand for 36 months

Housing Loan: Purpose: For construction / purchase / repairs / additions / renovations of residential house / flat including the purchase of land and construction thereon. For taking over of the Housing Loan liability with other recognized Housing Finance Companies, Housing Boards, Co-operative Banks, Co-operative Societies and Commercial Banks at prevailing low rate of interest. Eligibility: Salaried individuals, individuals engaged in business / professionals and self-employed persons. NRIs are also eligible to avail loans without specific permission of RBI. Persons above the age of 55 years are also eligible subject to certain stipulations. Maximum loan amount of Rs.50 lacks for purchase / construction of house / flat. (Loan is also granted up to Rs.1 crore selectively.) And Rs.7.5 lack for repairs / renovations / additions to the existing house / flat. Security: Mortgage of House / Flat Repayment: In convenient equated monthly installments up to 20 years

Home Improvement Loan: Purpose: For furnishing house / flat with household furniture items, air conditioners, wardrobes, kitchen cabinets, refrigerator, washing machine, etc., Can be availed along with a Housing Loan from Canara BankOR Without any Housing Loans This loan can also be availed where a Housing Loan is already obtained from Canara bank and the liability is subsisting. Eligibility: Owners of House / flat who are salaried individuals / individuals engaged in business / professionals / self-employed. NRIs are also eligible. Salaried individuals with minimum 25% net take home salary or Rs.2000/- after meeting loan repayment, whichever is more. Other than salaried individuals - minimum annual income of Rs.50, 000/- as evidenced by ITAO / IT Returns. Repayment: In convenient equated monthly installments up to 60 months Security: Hypothecation of assets created out of this loan. Mortgage of house / flat (if housing loan is availed from Can Bank) suitable co-obligation / personal guarantee. Waivers considered selectively. Loan Quantum & Margin:1. When availed along with Housing Loan from Canara Bank, amount up to one year's gross salary / income over and above the normal eligible amount for housing finance. 2. In other cases, one year's gross income / salary will be reckoned to determine the loan quantum under this Scheme. 3. Subject to above, normally, the maximum loan quantum shall be Rs.2 lack. Higher quantum considered selectively. 4. If availed as a part of the housing finance from Canara Bank, then, the margin stipulated is 15%. In other cases, the margin is 20%. Can carry (Loan to purchase Consumer Durables) Purpose: To pick up favorite household articles and latest gadgets to enhance the quality of life. The personal computer, laptop, handy cam, cameras, music systems, washing machine, microwave oven, refrigerators and many other items. Eligibility: Salaried individuals with minimum 25% net take home salary or Rs.2, 000/- after meeting loan repayments, whichever is more. Other than salaried individuals - minimum annual income of Rs.50, 000/- as evidenced by IT Returns. Finance up to 80% of the invoice value or 15 months of net salary, whichever is less. And for non salaried persons and professionals, finance up to 50% of net annual income of immediate previous year or 80% of the invoice value whichever is less. Repayment: In convenient equated monthly installments up to 36 months. Can cash - (Loan against Shares) Can cash loan can be availed by pledging investments in Shares, Debentures, Bonds or Units. Eligibility: Individuals - Existing customers with satisfactory dealings. New customers - well-introduced and credit worthy can also avail. Amount of Finance: Shares and Debentures - up to 60% of market value, PSU Bonds up to 70% of Market Value, Units of UTI and CBMF - 50% of NAV or market value whichever is less. Repayment: Up to 60 months. EMI is also acceptable. Can mobile - Vehicle Loan Purpose: For buying new or used four wheeler / new two Wheeler. Eligibility: Salaried persons, professionals and business people, with qualifying income and required repayment capacity. Reputed firms and corporate are also eligible. Loan amount up to 90% of the invoice value. There is no ceiling on maximum loan amount. Loan also available for used cars, Up to 75% of the value. Repayment: In convenient Equated Monthly Installments up to 72 months in case of four wheelers.48 months in case of two Wheeler. Can budget: A simple Personal Loan Scheme exclusively for the benefit of employees of Corporate, PSUs, Government Departments, Institutions, etc., Purpose: To meet genuine personal needs. Eligibility: Confirmed employees of reputed PSUs and Joint Stock Companies ,Confirmed Central / State Government officials, Lecturers / Asst. Professors / Professors of Colleges / Research Institutions and Universities ,Employees salary account has to be maintained with Canara bank branch Net take home salary - 40% of the gross salary. Selectively up to 25% of gross salary is also permitted. Quantum: Six months' gross salary or Rs.1 lacks whichever is less. Repayment: In convenient Equated Monthly Installments up to 60 months. Security Normally, Co-obligation is required for loans above Rs.50,000/-

Teachers Loan: Purpose: To meet any genuine personal needs Eligibility: All confirmed teaching / non-teaching staff working in a school / college - drawing salary through Canara bank branches Quantum: 6 months' net salary or Rs.1, 00,000/- whichever is less. Repayment: Up to 36 months. EMIs also possible. Security : A life insurance policy or a suitable co-obligation

B) Agriculture & Rural Credit Kissan credit card Minor irrigation/pumpest loan Vehicle loan for agriculture Loan for marine fisheries Drip/sprinkler irrigation loan Kissan suvidha Canara kissan OD Krishi mitra card scheme Gold loans for agriculture purpose a) Kissan credit cardCanara bank is the pioneer in implementing credit card scheme for formersPurpose: for meeting the cultivation needs of formers and other short term requirements including those of subsidiary. Eligibility: Individual formers /joint borrows / partnership firms / private & public Ltd, companies who are owner cultivator subsidiary activities .and a former who are cultivating authorized leased lands are also eligible.Minor irrigation/ pumpset loansPurpose: For purchase of electrical motors, oil engines, submersible irrigation pumpsets, for energisation of agricultural pumpsets, pipelines including installation charges, installing generator sets, solar pumpsets, installation of drip/sprinkler irrigation systems, fertilizer mixers.Eligibility: Owner cultivators with minimum 2 acres of land. Loans can be considered for less than 2 acres area provided, viability of the project is ensured.Vehicle loan for agriculturists:Purpose: For purchase of brand new vehicles such as bicycles, mopeds, two wheeler / three wheeler carriages, jeeps vans and light motor vehicles for supervising agricultural operation / management of farm / estate and for transportation of agricultural produce/ inputs, vehicles may also be a considered .purchase of heavy vehicles such as lorries for big farmers owning at least 15 acres of perennially irrigated land.Eligibility: Agriculturist cultivating his own land or engaged in allied activities such as diary, poultry, sericulture, fish farming, etcLoan for marine fisheries Marine fisheries: Purchase / construction of mechanized fishing vessels, fishing equipments, working capital requirements for voyages.Inland Fisheries: Construction / deepening / desalting/ widening of ponds, purchase of fingerlings, equipments, manures, feeds and labor inputs.Eligibility: well experienced fish farmers with suitable land, professional fishermen.Drip / sprinkler irrigation loansPurpose: For purchase of dripper, pressure regulators, filters, pipes, accessories, fertilizer mixers and pump sets. Construction of overhead thanks and installation of sprinkler irrigation units. Purchase of water savings devices / modern irrigation equipments.Eligibility: owners of land tenant cultivators can also be considered.Kissan suvidhaPurpose: For meetings the comprehensive credit needs of farmers. Working capital requirements. For crop cultivation expenses, working capital requirements for allied activities maintenance of farm machinery / equipments, non farm sector activities and consumption needs. Term loans requirements like purchase of agricultural implements, land development, purchase of bullocks and carts, purchase of farm machinery, minor irrigation.Eligibility: Agriculturists can avail finance for working capital requirements either under KCCS (Kissan credit card scheme) or under kissan suvidha scheme and not under both the schemes.Canara kissan ODPurpose: To provide a hassle overdraft facility for working capital expenses of agriculturists to be incurred for allied activities, repairs and replacements of farm machinery, working capital requirements and for non-farm sector activities and consumption needs, subjects to ceiling for each type of expense. The accounts can also be operated by ATM card Eligibility: Agriculturists having satisfactory repayment record for the past 1 year. Krishi mitra card schemeObjective: TO provide easy credit to individual tenant farmers, oral lessees, share croppers and farmers cultivating lands without proper records.Purpose: Cultivation of crops. Maintenance of animals and farm machinery, repairs and replacements of machineries. Replacement of animal.Loan quantum: maximum of RS 50,000/- subject to scale of finance and maximum of 50% of the value of the produce.Tenability: Extended either as an operative limit with a tenability of 3 years or as a single transaction limit, repayable in 5 years in quarterly /half yearly/ yearly installments.Gold loans for agricultural purposesObjective: To provide loans to farmers for various agricultural purposes against the pledge of gold jewelleries.Purpose: TO meet all farm requirement of the farmers.Loan quantum: Maximum of RS, 3, 00,000/- subject to 80% of the appraised value or per gram limit specified from time to timeRepayment: Within 12 months. Security: pledge for gold jewelleries.C) OTHER PRIORITY SECTOR LOANS Education loans MSME loans

Education loans Loans for students Purpose: payment of course fees. Purchase of book, equipments, instruments, uniform, payment of hostel fees, examination fees, study tours, passage expenses.

Eligible courses:Studies in India: Graduation, post graduation including technical /professional courses with employment potential conducted by colleges/ universities approved by UGC/Govt / AICTE /Dept of electronics/IMC autonomous institutions like IIT, IIM etc.Studies aboard: Job oriented, technical/ professional courses max.RS 10.00 lack. Studies in abroad: max RS 20.00 lack.Margin: Upto RS 4.00 laics nil above 4.00 lacks- for studies in india-5%. Studies abroad 15%.Security: Loan is given jointly to the student and parent/guardian. Assignment of future income of the student. Up to 4.00 lack no security. Above 4lacs up to 7.50 lacks satisfactory third party guarantee. Repayment: Commences one year after completion of the course or six months after getting employment whichever is earlier.

MSME loan

MSME POLICY

The Bank has adopted a Policy for lending to SME sector, in tune with Govt. of India guidelines as per MSMED Act, 2006, which has come into force i.e. 2nd October, 2006. The salient features of the policy are:

Definitions :

MSME sector comprises, Micro Enterprise, Small Enterprise and Medium Enterprises

Industry & Service SegmentsIndustryService

Micro EnterpriseThe investment in plant and machinery (original cost) does not exceed `.25 lacks.The investment in equipment (original cost) does not exceed `.10 lacks.

Small EnterpriseInvestment in plant and machinery (original cost) is more than `.25 lack but does not exceed `.500 lack.The investment in equipment (original cost) is more than `.10 lack but does not exceed `.200 lack.

Medium EnterpriseInvestment in plant and machinery (original cost) is more than Rs.500 lack but does not exceed `.1000 lacks.The investment in equipment (original cost) is more than `.200 lack but does not exceed `.500 lack.

Note:1. Enterprise means an industrial undertaking or a business concern or any other establishment, by whatever name called, engaged in the manufacture or production of goods, in any manner pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 or engaged in providing employing plant and machinery in the process of value addition to the final product2. Having a distinct name or character or use, and rendering of any service or services.3. In calculating the investment in plant and machinery, the cost of pollution control, research and development, industrial safety devices and such other items as may be specified, by notification, shall be excluded.4. The word equipment is defined as All instruments, office machines and such other electro mechanical or electronic appliances that are directly related to the service rendered but Excluding furniture, fittings and other items not so related.

Time Norms for disposal of Loan Applications:

Loan applications from units under SME sector will be disposed off within a reasonable time as mentioned below, provided such applications are complete in all respects.Sanctions at BranchSanctions at Circle OfficeSanctions at Head Office

Loans up to Rs.25000/-Within 2 weeksNot applicableNot applicable

Loans beyond Rs.25000/- & up to Rs.5 lathsWithin 4 weeksWithin 4 weeksWithin 4 weeks

Loans over Rs.5 lack & up to Rs.25 lackWithin 30 daysWithin 45 daysWithin 45 days

Loans over Rs.25 lackWithin 30 daysWithin 45 daysWithin a maximum of Rs.8 weeks

Token of Service on receipt of each application for credit facilities shall be issued.

Security:

Assets created out of Bank loan. Charge on the machinery/equipment & other fixed assets directly associated with the Activity of the enterprise. NO collateral security/third party guarantee for loans:i. Up to `.10 lack to Micro & Small Enterprises Upton `.25 lack in respect of MSMEs whose track record and financial position are good as per Bank recordsii. Upton `.100 lack (aggregate) in respect of Micro and Small Enterprises whose borrowable accounts are covered under Credit Guarantee fund for Micro & Small Enterprises (CGMSE).[Note: Presently CGMSE cover is not available to credit facilities extended traders, educational institutions, training institutes, training cum incubatorsCenters and to Medium Enterprises]. Collateral security/third party guarantee for loans beyond the above limits is insisted on merits of each case, as determined by Bank, subject to RBI/GOI guidelines.

Application forms:Depending upon the quantum of loan requirement under Small Enterprises (including Micro Enterprises) and Medium Enterprises, loan application forms are available at your nearest branch.The following prescribed applications are made available to the SME clients at the branches of the Bank. Format of Applications may also be downloaded from the website of the Bank.

ApplicationTo Micro & Small EnterprisesTo Medium Enterprises

NF 836Up to `.2 lack

NF 837Over `.2 lack and up to `.15 lack

NF 838Over `.15 lack and up to `.100 lack

NF 903*`.1 core and above

NF 998*To Micro & Small Enterprises irrespective of the loan amount

D) GOVERNMENT SPONSORED SCHEMS LOANS Saran jayanti rozgar shari yojana Sworn jayanti gram swarozar yojanaa) Swarna jayanti shri rozgar yojana (sjsry)Purpose:Assistance to individuals under urban self employment programme for setting up of gainful self employment ventures and development of woman and children in urban areas.Eligibility: applicants residing in urban /semi urban towns for at least 3years. Any bankable project/ activity involving a project cost of upto RS 50000 for individuals. For no ceiling on project cost.Margin: 5% of the project cost .Quantum of loan: 95% of project costSecurity: Mortgage of assets created out of loanProject cost: 50,000Repayment: Within 3 to 7 years.Swarna jayanti shahari rozgar yojana (sjsry)Purpose: For setting up self employment ventures in rural areasEligibility: All families in rural areas who find a place in the list of bellow poverty line identified through BPL census duly a approved by gram Saba are eligible for assistance under the scheme.Margin: Loans up to RS 50,000/- for individuals and loans up to 6,25 lacks .for groups.Security: asset created out of loan/ mortgage of landed by property /Third party guarantee.Repayment: Within 5 to 9 years.

RESEARCH STUDY

STATEMENT OF THE PROBLEMSThe primary duty of the banks is to collects the deposits from the public and the same can be lent to the customers in the form of loan and advances. The bank provides various loans to its customers for different purpose like education, agriculture, Government Schemes, Other loan, etc. Study is under taken to analysis of loans and advance lent to its customers during last 3 years and find out which sectors performance is sluggish and its impact on the profitability of the bank. B ) OBJECTIVES OF THE STUDY To study the types of loans and produces for granting the loan to the customers. Analysis of loan and advances sanctioned during last 3 years in case of agriculture sector, personal loan Govt sponsored loan & other priority sector loan . Identify the impact of interest rates on the borrowings of the customers

c) Scope of the study: The project report covers different aspects of loan and advances. Sequencing the information as per the use. Analysis loans and advances and relevant information. Interpreting the data and giving suggestions. Study on pre-process of granting loan and advances The study helps to know the credit monitoring and control

D) Methodology:Data collection methods

Primary data: The data required for the extensive study has been collected through numerous sources. The primary data has been collected through personal interviews with the concerned guide both in college as well as in the bank, who are well conversant with the topic and who can provide valuable inbuilt to the study.

Secondary data: Some banking booklets of previous years have been used as a reference for the study. Banking magazines and prospects have also been used for the study. The following are the secondary sources:1) Annual Reports of the Bank 2) Balance Sheet

A) Limitations of the study: The duration of the project was restricted only for 10 weeks. The study is limited to the extent of available information supplied by the bank Information is partially based on secondary data and hence authenticity of the study can be visualized and is measurable. Some data was considered as very confidential and hence the bank refused to share.

3. ANALYSES AND INTERPRETATION OF DATAThe following categories are showing that how Canara bank are classified there different loan and advances products.1) Personal loan products 2) Agricultural loan products.3) Govt sponsored loan products.4) Other priority sector loans products Value of loan has been sanctioned in last 3 years in case agricultural sector, personal loan, Govt sponsored loans &other priority sector.YEARSPERSONAL LOANAGRICULTURAL LOANGOVT SPONSERED LOANOTHER PRIORITY SECTOR LOAN

20102114222450507054111

201122154263051069562108

201227848319461560867383

TOTAL711448070131373183602

PROPORTION OF FINDING EACH SECTOR

19.39%

22.00%

8.55%

50.05%

Total all sector loan amount from 2010-2012 is 366820 Each sector loan from 2009-2012Personal loan=19.39 %( 71144/366820*100)Agricultural loan=22 %( 80701/366820*100)Govt sponsored loan=8.55 %( 31373/366820*100Other priority sector loan=50.05 %( 183602/366820*100 The above data is shown below in the bar chart

INTERPRETATION It may be found above chart is that the Personal Loan is(19.39%) in 3rd position Agriculture loan and advance are high among the Govt sponsored loan loan and advances. In followed of Agriculture loan and advances (22%) in 2nd position other priority sector loan and advances is in (50.05%), in 1rdposition Govt sponsored loan (8.55%) in 4th position in the total outstanding balance loan and advances in the 2010- 2012.Section 2:In this 2nd section we are analyzing individual categories of loan and advances for the last three years data.

1) PERSONAL LOANS AND ADVANCES:In the Canara loan products the personal loan is an important part. The bank provides loan and advances to its customers to meet its credit requirements and even to meet long term as well as working capital requirement of the company. The Bank have been meeting varied personal credit requirement of different classes of people through its some loan schemes namely can housing, can teachers loan, can gold loan etc. The following tables show the outstanding balance of last four years from 31st March 2010- 31st March 2012 that the bank has provided personal loans and advances to its customers. SL NOYEARSAMOUNT

131-3-20106700

231-3-20117250

331-3-20128500

The above datas are shown in column chartAnalysis of personal loan from 2010-2012.

INTERPRETATION In the above chart it is clearly shows that in 2010 the total outstanding balance of Personal loan and advance is increase by Rs 6700 compare to previous year and again in the year 2011 increases by Rs 7250 and in the year 2012 it is tremendously decrease by Rs 8500 so overall average growth in agriculture loan and advances is Rs 22450

2) AGRICULTURAL LOAN AND ADVANCES: Agriculture loans and advances include both direct and indirect loans advances.The bank provides various direct loan and advances in relating to purchase of land, irrigation loans, land improvement loan, and others include machineries and loan to purchase corps and fertilizers etc. indirect agriculture loan and advances provide with an intension towards to preserve the agricultural products to longer time it include loan to construct goods van transportation of agricultural product to market etc. the agricultural loan advances are also are classified into periodic wise namely short and long term loans. The short term loan provides to farmer to purchase corps, fertilizers etc. and loan repayment period is maximum 1 year. And in long term loan includes more than a year these kinds of loan provide to purchase of land, irrigation loans, land improvement loan, tractor loan and others include machineries etc.

The following table shows the outstanding balance for the last four years from 31st March 2010- 31st March 2012 that the bank provided Agricultural loan and advances to its customers.

SL NOYEARSAMOUNT

131-3-201024505

231-3-201126305

331-3-201231946

The above datas are shown in bellow column chart, Years 2010-2012

INTERPRETATION:In the above chart it is clearly shows that in 2010 the total outstanding balance of agriculture loan and advances increase by Rs 24505 compare to previous year and again in the year 2011 increase by Rs 26305 and in the year 2012 it is decrease by Rs 31946 so over all avg growth in agriculture loan and advances is Rs 82756.

3) GOVT SPONSERED LOANS

The bank had changed their products name- Govt sponsored loan in the developing economy of our country the Govt sponsored loan are playing a vital role in economic development. The following table shows the outstanding balance of last 3year from 31st March 2010 to 31st March 2012 that bank provides Govt sponsored loan and advances to its customers. SL NOYEARSAMOUNT

1201010000

2201112500

3201214654

The above the datas are showing in column chart Analysis of Govt sponsored loan from 2010- 2012

INTERPRETATION In the above chart it is clearly shown that in 2010 the total outstanding balance of a Govt sponsored loan and advances is increased by Rs 10.000 compare to previous year but in 2011 it is increase by Rs 12500 and again I the year 2012 It is increased by Rs 14654 so overall avg growth in Govt sponsored loan and advances Rs 37154.

4 ) OTHER PRIORITY SECTOR LOAN AND ADVANCES:

Other than above mentioned personal, agricultural, govt sponsored loan and advances are coming under these categories in other priority sector loan and advances include scheme Educational lone etc. The following tables show the outstanding balance for last 3years from 31st March 2009 to 31st March 2012 that the bank has provided other sector loan and advances to its customers.

SL NOYEARSAMOUNT

1201017505

2201122154

3201227848

The above the datas are the shown in bellow column chart

Analysis of other priority sector loan from 2010 - 2012

INETERPRETATION In the above chart it is clearly shown that m in 2010 the total outstanding balance of other priority sector loan and advances is increase by Rs 17505 compare to previous year but in 2011 is decrease by Rs 22154 and again in the year 2012 it is increased by Rs 27848 above so overall growth in other priority sector loan and advances is Rs 67507.

4.Findings:

Canara Bank is mainly concentrating on four types of loans. Agriculture, Personal, Government Sponsored and Other loans. There is increase in Personal loan and advances during 2010 to 2011 RS 550, and 2011 to 2012 that is Rs 1250. The agriculture loan and advances increase during the year 2012 The lending of government sponsored loan increased year by year but during 2012 it is decreased. Bank is not advertising about its products and services. Bank interest rates are little high with comparison with some other banks. Canara bank branches are less in rural area; mostly they are concentrating on urban areas.

5. Suggestions:

The Bank must provide loans to its customers on easy installments. It must give full information about the loan schemes to its customers. The Bank must take suitable steps to recover the loan amount. They have to offer quality services and help the agriculturist to understand the loan producer and subsidies available on account of agricultural sectors. Bank has to conduct some campaigns like SBI home loan mela etc. , it helps the bank to educate the customers about various loans available to their customers. The bank has to provide loan at competitive interest rates to its customers. The bank has to motivate and educate customers to utilize online facility to pay their telephone bill, taxes returns, online shopping and for many other purposes.

6) Conclusion:The banking sector is a worthwhile business. In this competitive world every bank is brining a new scheme which creates a competitive advantage to the customer. The ultimate challenge for Canara bank would be to attract new customers by overcoming the problem of customer with a definite plan of action so that it can maintain the trust and confidence of its customers then problem of ROI in bank has to solve through changing its funding problem. The various schemes which are brought by the competitors create hurdle to the bank. So it is trying to bring out new schemes of its customer and also trying to retain the old customers.

This is a great pleasure to undertake a project work under Canara bank Ankalgi. I really came to know what are the procedures and formalities required to take loan and advances even the problem faced while recovery of such loans taken. Also I studied the responsibilities of manager in providing loans and advances. I have put in my best efforts and gave all the required information and some suggestion to overcome the problem faced. The over all project helped me to under stand the banking industry and its working and how it builds the relationship with the customers.

ANNEXURELAST 3 PROFIT AND LOSS A/C FOR 3YEARSINCOMES Mar 2012Mar 2011Mar 2010

Interest earned30,850.6223,064.0118,751.96

Other income2,949.752,826.983,000.82

TOTAL INCOME 33,800.3725,890.9921,752.78

EXPENDITURE

Interest expended23,161.3115.240.7413,071.43

Employee cost 2.937.092.954.842.193.70

Selling and admin Expenses2.245.561.817.822.164.65

Depreciation156.89151.36155.13

Miscellaneous expenses1.980.821.700.341.146.44

Preoperative exp capitalized0.000.000.00

Operating expenses 5.967.815.420.494.903.79

Provisions & contingencies1.388.551.203.87756.13

TOTAL EXPENSES30.517.6721.865.1018.731.35

NET PROFIT FOR THE YEAR3.282.714.025.893.021.43

Extraordinary items0.000.000.00

Profit brought forward0.000.000.00

TOTAL3.282.714.025.893.021.43

Preference dividend0.000.000.00

Equity dividend487.30487.30410.00

Corporate dividend tax80.0080.0070.00

EARNING PER SHARE (RS)74.1090.8873.69

Equity dividend (%)110.00110.00100.00

Book value (RS)465.57405.00305.83

APPROPRIATIONS

Transfer to statutory reserves1.530.151.765.291.676.35

Transfer to other reserves1.185.261.693.30865.08

Proposed dividend/ transfer to Govt567.30567.30480.00

Balance c/f to balance sheet0.000.000.00

TOTAL3.282.714.025.893.021.43

Analysis of Balance Sheet Three years LiabilitiesMar 2012Mar 2011Mar 2010

Capital and Liabilities:

Total Share Capital443.00443.00410.00

Equity Share Capital443.00443.00410.00

Share ApplicationMoney0.000.000.00

Preference Share Capital0.000.000.00

Reserves20,181.8217,498.4612,129.11

Revaluation Reserves2,065.142,098.362,132.68

Net Worth22,689.9620,039.8214,671.79

Deposits327,053.73293,972.65234,651.44

Borrowings15,525.3914,261.658,440.56

Total Debt342,579.12308,234.30243,092.00

Other Liabilities & Provisions8,891.127,804.646,977.30

Total Liabilities374,160.20336,078.76264,741.09

AssetsMar 2012Mar 2011Mar 2010

Cash& Balances with RBI17,795.1422,014.7915,719.46

Balance with Banks, Money at Call10,384.278,693.323,933.75

Advances232,489.82212,467.17169,334.63

Investments102,057.4383,699.9269,676.95

Gross Block4,858.374,686.154,480.37

Accumulated Depreciation2,000.841,841.741,620.99

Net Block2,857.532,844.412,859.38

Capital Work In Progress0.000.000.00

Other Assets8,576.016,359.153,216.92

Total Assets374,160.20336,078.76264,741.09

Contingent Liabilities166,419.96111,805.73110,627.02

Bills for collection36,132.9129,041.7421,206.47

Book Value (Rs)465.57405.00305.83

BIBLOGRAPHY FINANCIAL MANAGEMENT -KHAN & JAIN BANK ANNUAL REPORT WEBSITE WWW.CANARA BANK.COM WWW. RBI .IN WWW MONEY CONTROL .COM H.K.E.S society S L N college of Engineering Yermarus Camp Raichur.Page 1