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PROJECT REPORT ONA study on commercial lending by banksSUBMITTED BYDrashti GandhiTYBMS SEMESTER – VI2021-UNDER THE GUIDANCE OFMS. Swapna KadamSUBMITTED TO UNIVERSITYOFMUMBAIVIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY(AFFILIATED TO UNIVERSITY OF MUMBAI) VIDYALANKAR MARG,WADALA (E), MUMBAI 400 037VID...

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PROJECT REPORT ON A study on commercial lending by banks

SUBMITTED BY Drashti Gandhi

TYBMS SEMESTER – VI 2021-22

UNDER THE GUIDANCE OF MS. Swapna Kadam

SUBMITTED TO UNIVERSITY OFMUMBAI

VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY (AFFILIATED TO UNIVERSITY OF MUMBAI) VIDYALANKAR MARG, WADALA (E), MUMBAI 400 037

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VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY (Affiliated to Mumbai University)

Certificate This is to certify that

Mr./Ms.

of

B.Com.

in Banking&Insurance,/BachelorinManagementstudies/B .Com.infinancial Markets & work

Semester completed

has the

undertaken project

titled during theacademicyear

under

guidance of Mr./Ms.

the

submittedon

to this college in fulfilment of the curriculum

of

B.Com.

in

Banking

&Insurance 2

/Bachelor

in

Management

studies/

B.Com.

in

financial Markets University of Mumbai. This is a Bonafede project work & the information presented is True & original to the best of our knowledge and belief. PROJECT GUIDE

COURSE CO-ORDINATOR

EXTERNAL EXAMINER

PRINCIPAL

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ACKNOWLEDGMENT

I hereby acknowledge all those who directly or indirectly helped me in drafting of this project report. It would not have been possible for me to complete the task without their help and guidance.

First, I would like to thank to the principal Dr. Rohini Kelkar, the Vice-Principal Mr. Vijay Gawde, and our Project in-charge Mr. Sagar Gaikwad who gave me the opportunity to do this project work. They also conveyed the important instructions from the university time to time. Secondly, I am very much obliged of Ms. Chitra. More for giving guidance for completing the project.

Last but not the least; I am thankful to the University of Mumbai for offering the project in the syllabus. I must mention my hearty gratitude towards my family, other faculties and friends who supported me to go ahead with the project.

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DECLARATION

Vidyalankar School of Information Technology (Affiliated to University of Mumbai) Vidyalankar Marg, Wadala (E), Mumbai 400 037

I Drashti Gandhi, student of T.Y.B.Com. Banking & Insurance/Bachelor in Management studies/ B.Com. In financial Markets Semester VI, Vidyalankar School of Information Technology, hereby declare that I have completed the project on A study on commercial lending by bank – case study on Educo in academic year 2021-22.

The information submitted is true and original to the best of my knowledge.

Signature of student Drashti Gandhi

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INDEX SR.NO

PARTICULARS

PAGE NO.

1.

Executive Summary

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2.

Scope of Study

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Ch .1

Introduction to the Study

9

1.1.

Objective of the Study

10

1.2.

Limitations of the Study

22

1.3.

Methodology& Sources of Data

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Ch.2.

Introduction to the topic

Ch.3.

Review of literature

Ch.4.

Data Analysis

Ch.5.

Findings

Ch.6.

Conclusion

Ch.7.

Suggestions/Recommendations

4.

Annexure

5.

Bibliography

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LIST OF TABLES/FIGURES FIGURE NO.

TABLES/FIGURES NAME

PAGE NO.

Executive Summary Commercial banks occupy a dominant place in the money market. They, as a matter of fact, form the largest component in the banking structure of any country. They are the oldest, largest and fastest growing financial institutions in India. They are profit making institutions, 7

dealing in money and credit. Commercial banks play a major role in the growth and development of the country due to the modern organization and functioning, huge funds and wide network all over the country. Thus, they are like a reservoir into which flow the savings, the idle surplus money of households and from which loans are given on interest to businessmen and others who need them for investment or productive uses. Commercial banks are very important source of institutional credit as they are the major depository of people`s savings. They are very important devices for providing short term credit to trade and commerce. Commercial Banks being repositories of deposits have played significant role in garnering savings of the people particularly after the nationalization. Thus, they have made praiseworthy efforts in pooling the savings. The bank loan portfolio during the actual sector transition. Towards a knowledge economy where businesses use more and more intangible assets. exploitation Non-uniformity of bank exposure and change in composition from tangible to intangible A chapter showing that public banks limit commercial loans and redistribute loans Other assets such as mortgages. It is estimated that the significant increase in intangible assets since the mid-1980s explains about 30% of the long-term decline in market share. Commercial lending in a bank's loan portfolio. Provides exciting evidence of this Shift increased the risk of bank lending KEYWORDS: Commercial Lending, corporate intangible capital, bank lending, commercial loans, real estate loans.

Ch.1 Introduction

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The term commercial bank is a financial institution that receives deposits, makes various loans, provides account services, and provides individual and small business with basic financial outcomes such as certificates of deposit (CDs) and savings accounts. Means Commercial banks are where most people do banking. Commercial banks make money by generating and receiving interest on loans such as mortgages, business loans, car loans, and personal loans. Customer deposits provide banks with the capital to take out these loans. Commercial banks provide basic banking services to the general public (both individual customers and small businesses). Commercial banks are traditionally located in buildings where customers use teller machines and automated teller machines (ATMs) for their day-today banking needs. With advances in technology, most banks today allow most of the same services that customers can do directly, such as wire transfers, deposits, and bill payments, online. A commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit. It can also refer to a bank, or a division of a large bank, which deals with corporations or large/middle sized business to differentiate it from a retail bank and an investment bank. Commercial banks include private sector banks and public sector banks..A commercial bank is a financial institution which performs the functions of accepting deposits from the general public and giving loans for investment with the aim of earning profit. A commercial bank is a type of bank that provides services such as receiving deposits, providing commercial credit, and providing basic investment products. A commercial bank may also refer to a bank or banking sector that primarily deals with deposits and loans to businesses or large corporations, rather than the general public (retail banking). In the United States, the term commercial bank is often used to distinguish it from investment banks due to differences in banking regulations. After the Great Crisis, the US Parliament, through the Glass-Stag all Act, required commercial banks to engage only in banking operations, but investment banks were restricted to capital market activities. A commercial loan is a debt-based loan agreement between a company and a financial institution such as a bank. It is typically used to finance major investments and operating To expenses that a company may not otherwise be able to cover. Due to high upfront costs and regulatory hurdles, SMEs often do not have direct access to the fixed income and equity markets to raise funds. This means that small businesses, like individual consumers, rely on other lending products such as credit lines, unsecured loans and term loans. Commercial Lending is when a business borrows money to pay for business expenses, real estate or equipment purchases required to operate or expand. Commercial lending is also used by people who already have established businesses for a variety of reasons. One, those who have a business that`s already established may run into certain situations when they have a higher number of orders they need to fulfil. During seasonal times, such as the holidays, small and large businesses often need to buy a lot of merchandise or other supplies to make the highest profit they possibly can during the seasonal months.

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Objective of the study

1) To compare the various industrial development financial schemes provided

by different banks. 2) To identify the relationship between the structure of assets in banks and bank profitability.

3) To know the effectiveness of industrial finances provided by various banks. 4) To learn about the responses provided by the people.

Limitations of the Study

The sample size of customers and prospects is very small and it is not possible to draw consistent conclusions from the information provided. Relative satisfaction varies from individual to individual and can only be measured if respondent experiences services from similar organizations in similar areas and cannot be commented.

Scope of study

The banking sector is considered to as the backbone of the Indian economy and offers various career opportunities to students from all fields: science, commerce humanities. You need to good in analyzing numbers with strong mathematics so that you can interpret and analyze numerical data. It is one of the lucrative careers especially for the people who are looking job in government sector. The importance of banks to enable the development of the modern economy can be formulated as follows. Banks collect the savings of those who can save and distribute them to those in need. These savings would have been wasted due to the ignorance of the people and the fact that they were scattered and strangely present in small quantities. However, banks collect them and divide them into the parts needed by different investors. Banks are expected to save national financial resources and allocate them in an appropriate, appropriate and desirable manner. Provide a means to transfer funds from one place to another, and send money in a cheap, safe and convenient way. The bank arranges crossing and non-crossing 11

payments by check, order, or bearer. This is the easiest and most convenient. What's more, they are also concerned about making such payments as secure as possible. Banks also help keep customers' valuable property intact and safe. Banks regulate the progress of funding that is the foundation of modern industry and economy and is essential to financing the development process.

Research Methodology This part of the survey describes the survey method used to conduct the survey. Therefore, it includes survey location, survey design, target group, sample selection, survey tool, implementation, survey tool reliability, survey tool effectiveness, data collection procedures, data analysis, and reports. Research is an empirical study. The survey was conducted at and targeted two types of respondents: (i) bankers involved in banking operations related to senior sector lending and collection, and (ii) borrowers of the commercial banks surveyed. It is said that. A face-to-face interview was conducted with selected bank staff and selected senior sector loan borrowers in study area. Information was collected according to the Well Structured Questionnaire addressed to respondents. The considering the purpose of the research, questionnaires were prepared for bankers and borrowers. The research methodology is data collection through:• PRIMARY SOURCES • SECONDARY SOURCES Primary Sources: Survey by distributing questionnaire to the people taking sample size of 100, Interviews conducted with bankers; accumulating knowledge and help from friends, professors, etc. Secondary Sources: Gathering data through books, journals, magazines, websites, newspapers, etc. 1) Selection of Sample For the purpose of study specific bank has been selected as a sample bank. The research has communicated with no. of banks but no one is willing to share Information in respect of NPA as it is a confidentional and sensitive issue. The Commercial Co-operative bank Ltd. Kolhapur is selected for the study. The Researcher is a member of the Commercial Co-operative Bank and also contact. With the Asst, manager and chairman and they are also willing to provide necessary information related to NPAs. The bank also good reputation in the Kolhapur district and also a good track record but facing problems relating to NPA. The researcher also though that all UCBs are functioning on the similar line. So the specific bank is selected as a sample bank. 2) Data collection The present study is based on primary and secondary data. The interview method is thought to be appropriate for primary data collection. One to one discussion with manager, director, and other staff of the bank in normal. 12

Working hours was hold. In this method, the predetermined questionnaires were used to gather the desired data. The data is also collected through secondary sources. Since NPA is a confidential issue, mostly study is based on secondary data. The secondary data is obtained by internal source as Annual Reports, Registers and Accounting record of the bank. It is also obtained from various publications i.e. RBI Master Circulars, RBI Bulletin, Publications of Universities and research institute e.g. Indian Journal of Economics, Report of committees, News paper and periodicals and from various books.

3) Data Analysis: The data so collected is organized, classified, tabulated and analysed in systematic manner and conclusions are drawn. Simple tools have been employed for data analysis

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Ch.2 Introduction To The Topic

Introduction on ICICI Bank Established in 1955 by the Industrial Credit Investment Corporation of India (Financial Institution of India).Originally known as the Bank of India's Industrial Credit Investment Corporation, the bank has changed its name to ICICI Bank. The parent company (Indian Industrial Credit Investment Corporation) later merged. In the 1990s,bank. Financial institutions evolved into a diverse group of financial services. Sales as of December 2013 – 114,550 rupees. India's growth story has a significant impact on capital markets. Capital markets are growing rapidly in terms of multiple parameters, from the number of exchanges, other intermediaries, listed stocks to trading volumes, trading volumes, market products and the investor population. Unprecedented growth suggests that the securities market is in great need of professionals each year. However, roles in this area require special knowledge and skills. Therefore, it is necessary to build a resource base for qualified securities market professionals. ICICI Bank has partnered with the National Institute of Securities and Markets (NISM) to launch a Graduate Certificate of Securities Markets (PGCSM). The programme aims to create professionals such as Treasury dealers, Fund Managers, Analysts, Institutional Sales Professionals, and Investment Advisors in the securities markets. This partnership is part of ICICI Group`s strategy to capacities for growth. ICICI Bank is India's second largest bank with over 50 years of financial experience and 14 million customers worldwide. ICICI Bank was the first Indian company to be listed on the New York Stock Exchange and is part of the well-established and highly successful ICICI Group.

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Overview

ICICI Bank (formerly Industrial Credit and Investment Corporation of India). ICICI Limited was established in 1955 by the World Bank, the Government of India and the Indian Industry, for the promotion of industrial development in India by giving project and corporate finance to the industries in India. ICICI Bank has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI Bank has financed all the major sectors of the economy, covering 6,848 companies and 16,851 projects. As of March 31, 2000, ICICI had disbursed a total of Rs.1, 13,070crores, since inception. ICICI Bank Fact Files: Total assets: Rs.146, 214crore (December 31, 2004) Network: 530 branches ATMs: Over 1,880 Abroad Subsidiaries: United Kingdom and Canada Abroad branches: Singapore and Bahrain Representative offices: United States, China, United Arab Emirates, and Bangladesh and South Africa. ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Financial Centre, and representative offices in the United States, United Arab Emirates, China, South Africa and Bangladesh. I have it. Our UK subsidiary has set up a branch in Belgium. ICICI Bank is India's most valuable bank by market capitalization.

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History of ICICI Bank ICICI was founded in 1955 under the leadership of the World Bank, the Government of India, and representatives of the Indian industry. The main purpose was to establish a development finance institution that would provide medium- to long-term project finance to Indian companies. By the late 1980s, ICICI had long-term funding for various industrial projects, with a focus primarily on project finance. With the liberalization of India's financial sector in the 1990s, ICICI has expanded from a development finance institution that provides only project finance to a diverse range of financial services providers that offer a wide range of products and services with its subsidiaries and other group companies. I have converted. As India's economy became more market-oriented and integrated with the global economy, ICICI took advantage of new opportunities to offer a wider range of financial products and services to a wider range of customers. ICICI Bank was established in 1994 as part of the ICICI Group. In 1999, ICICI became the first Indian company listed on the New York Stock Exchange and the first bank or financial institution from Asia other than Japan. In the context of India, the issue of universal banking, which means the conversion of long-term lenders such as ICICI to commercial banks, has been widely discussed in the late 1990s. ICICI Bank released Internet Banking operations in 1998. ICICI`s shareholding in ICICI Bank became decreased to 46% thru a public imparting of stocks in India in 1998, accompanied with the aid of using an fairness imparting within side the shape of American depositary receipts at the NYSE in 2000 By becoming a bank, ICICI has become able to accept low-cost demand deposits, offer a wide range of products and services, and have more opportunities to earn non-cash income in the form of banking fees and fees. After considering various corporate structure alternatives in the context of new competitive scenarios in the Indian banking industry and the transition to universal banking, ICICI and ICICI Bank management decided that the merger of ICICI and ICICI Bank would be the best strategic strategy. I thought it was an alternative. The two companies will build the optimal legal structure for the ICICI Group's universal banking strategy. The merger will give post-merger e...