1

A PROJECT REPORT ON
A STUDY OF, LOAN PROCEDURE & DOCUMENTION WITH
REFERENCE TO DIFFERENT FINANCE SCHEME OF CBI BANK.
SUBMITED TO
Rashtrasant Tukadoji Maharaj Nagpur University
For
Bachelor of Business Administration III Year
Under the Guidance of
Prof. Vivek V. Nagbhidkar
Submitted By

l
Snehal B. Sakhale.
(2012-2013)
Through
Department of Computer Science & Management
(Dr.M.K.Umathe Arts & R. Mokhare Commerce College)

Certificate

This is to certify that Miss. is a bonafied student of Bachelor of

Business Administration, session 2012-2013 of the Dr. M.K.
Umathe Arts, Science and R. Mokhare Commerce College, Nagpur.
The candidate has worked under the supervision of Prof. Vivek
V. Nagbhidkar has satisfyingly conducted project work for not
less than one academic session. The project submitted by her is
his own work and is completed so as to warrant its presentation
for examination.
His project work entitled A STUDY OF, LOAN PROCEDURE &
DOCUMENTION WITH REFERENCE TO DIFFERENT FINANCE SCHEME
OF CBI BANK., which is in partial fulfillment of the requirement
for the above course, is being forwarded to Rashtrasant Tukadoji
Maharaj, Nagpur University Nagpur.

Prof. Vivek V. Nagbhidkar

Nagbhidkar
(Project Guide)

Prof. Vivek V.
Head of Department
Dept. of Business Management
Dr. M. K. Umathe Arts, Science And
R. Mokhare Commerce College,
Nagpur.

Dr. D. V. Naik
Principal
Dr. M. K. Umathe Arts, Science And
R. Mokhare Commerce College,
Nagpur.

Date:Place: - Nagpur

Declaration

I hereby declare that the project entitled

Study of different financial services of state bank of
India, has been carried out by me under the guidance of Prof.
Vivek V. Nagbhidkar
This project is submitted to Rashtrasant Tukadoji Maharaj,
Nagpur University in partial fulfillment of academic requirements
for Bachelor of Business Administration during academic year
2011-2012.
This is outcome of my own research work based on personal
study and has not been submitted previously for award of any
degree or diploma to this university or any other university or of
any other purpose.

Date:Place: - Nagpur

Researcher

..

ACKNOWLEDGEMENT
I am very glad to have an opportunity or a golden chance of presenting this
project on with great delight and pleasure.
It would not have been possible for me to succeed in this project without the
generous help and encouragement provided by who shaped and
polished my ideas.
I am greatly thankful to my Principal Dr. D. V. Naik for giving me this
opportunity.
I express my sincere gratitude and heartfelt thanks to my guide Prof.
Lastly I would like to thank all those people who have directly or indirectly
contributed in the successful completion of this project.

Researcher

11

INDEX
SR.
NO.

CHAPTER

PAGE NO.

1.

INTRODUCTION

4-17

2.

COMPANY PROFILE

18-23

3.

RESEARCH METHODOLOGY :-

24-26

DATA COLLECTION

27-31

DATA ANALYSIS & INTERPRETATION

32-33

HYPOTHESIS

34-35

4.

OBJECTIVE OF STUDY

36-37

5.
6.

LOAN PROCETURE & DOCOMENTATION

DATA SOURCE ANALYSIS &INTERPRETATION

38-60

7.

CONCLUTION

61-63

8.

SUGGESION

64-69

9.

BIBLOGRAPHY

70-71

11

CHAPTER -1

INTRODUCTION

Central Bank of India

INTRODUCTION
11

CENTRAL BANK OF INDIA HAS BEEN AWARDED THE BEST

BANK OF THE YEAR 2010

Loan, in finance, the leading of some money. In common usage, the

leading f any piece of properties. A loan may be secured by charge on the
borrowers properties or be unsecured. Loan basically different type of loans.
Every types of loan its own specialty. Rate of interest and monthly installments
varies. CENTRAL BANK OF INDIA (CBI) is giving different types of loan
procedure loan can take many firms. Many businesses are financed by long term
capital, such as loan stock or debenture. Government also finance their
borrowing requirement by issuing long term fixed interest bonds that is the
united kingdom as gilt edged stocks.
Central Bank of India (CBI) is largest bank in India. CBI can provide
many types of loan to people. It is nationalized bank. Rates of interest and terms
also different and it can provide different types facility of consumers.
The most basic role of banking, safeguarding fund, is done through vaults,
safes, and secure facilities that physically store money loan to consumer are
drown on the funds deposited with the bank and yield interest which provide the
profit for the banking industry and the interest on saving accounts.
CBI banks under maximum 2000 customers and CBI bank provides the
proper facility to all customers.

11

Central Bank of India is a major nationalized public sector bank with

more than 3000 branches across India. The bank had an outdated IT network in
place and had distributed IT infrastructure with multiple vendor applications
running. There was minimum integration amongst in-use applications and IT
set-up in branches. Central Bank of India was facing serious operational and
expansion issues due to its legacy IT
Infrastructure and multiple independent non-integrated applications.
Interlinking multiple applications was a serious challenge and had its own
limitations. Duplication of IT asset inventory was also a matter of concern. With
new market initiates in the banking industry such as Single Window Banking,
Internet Banking, Anywhere to Anywhere Banking, ATM, and Credit Card, CBI
had to compete with other
banks (nationalized and private sector) to remain in business.
An integrated solution application was developed and front-ended by TCS Ltd.
for Central Bank of India, bringing its 1450+ branches and important offices on
a single banking platform.

CMCs Solution
A consortium partner in CBS project, CMC has expertise in network
solution design, supply of hardware and its implementation in the proposed CBI
offices and branches. The task was to seamlessly migrate pre-identified
branches on the CBS set-up and thereafter, to manage the entire all-India
network (spread across length and breadth of India) with the help of CMC
Facility Management team. CMC designed 3-tier architecture network covering
Data Center, Disaster Recovery set-up,
network aggregation points and branches under it. This robust high-end solution
was based on products from renowned manufacturers.
CMC established country wide logistics infrastructure to cater to hardware/IT
supply across India. Supply and installation of SUN mainframes, peripherals
and other hardware was also executed to
perfection.CBI CBS Phase-I rollout covered 1350+ branches across India and
was successfully completed despite serious challenges. For achieving this
landmark, CMC all-India team worked in tandem with TCS application
deployment team. CMC solution is time-tested and has proved to be functioning
without any technical breakdown/problem. CMCs work has been highly
appreciated by the customer.

11

Benefit to the Customer

Deployment of CBS solution has been major driver in the growth of the
banks business. Core banking infrastructure has placed CBI at par with its
business competitors and has improved the visibility of the bank. New
technology has also improved operational efficiency and as it has resulted in the
increase of customers as well as in offerings.

Best Bank Award 2010

11

TYPES OF LOAN
CBI Bank offers wide variety of Loans Products to suit your
requirements. Coupled with convenience of networked branches/ ATMs and
facility of E-channels like Internet and Mobile Banking, CBI Bank brings
banking at your doorstep. Select any of our loan product and provide your
details online and our representative will contact you for getting loans

Loan is divided in two parts

Long term loan: - Long term loan is a period of minimum five years
loan. In long term loan is included the car loan, house loan etc.
Short Term Loan: - Short term is a period of one accounting year.
Public deposit received for a period of one to three year theoretically
should not include in short term loan.
1. HOME LOAN

Home Loans Provider in the country, CBI Bank

offers some unbeatable benefits to its customers Doorstep Service, Simplified Documentation and
Guidance throughout the Process. It's really
easy!

11

2. PERSONAL LOAN
If you're looking for a personal loan that's easy to get your
search ends here. CBI Bank Personal Loans are easy to get and
absolutely hassle free. With minimum documentation you can now secure a loan
for an amount up to Rs. 15 lakes

2. CAR LOAN
The most preferred financier for car loans in the
country. Network of more than 1000 channel partners in
over 200 locations. Tie-ups with all leading automobile
manufacturers to ensure the best deals. Flexible schemes
& quick processing. Hassle-free application process on
the click of a mouse

4. COMMERCIAL LOAN
Range of services on existing loans &
extended products like funding of new
vehicles, refinance on used vehicles,
balance transfer on high cost loans, top
up on existing loans, Extend product, working capital loans
& other banking
products.

5. FORM EQUIPMENT LOAN

Preferred financier for almost all leading tractor manufacturers in
the country. Flexible repayment options in tandem with the
farmer's seasonal liquidity. Monthly, Quarterly and Half-yearly
repayment patterns to choose from. Comfortable repayment tenures from1 year
to 9 year.

11

6. BUSINESS INSTALLMENT LOAN

Business Installment Loan (BIL) helps the entities take a giant
stride by fulfilling their business requirements, be it
working capital requirement, business expansion or to
grab that on
time opportunity.

7. EDUCATION LOAN

Education Loan: This is with reference to you

proposal on the above subject. We are happy to provide Education
Loans to students having secured admission to your institute as per the
terms and conditions appended below.

8. TWO WHELLER LOAN

CBI Bank's
Two Wheeler Loans could help realize your dreams.
Whether you see it as an aspiration accomplishment or a
necessary mode of transport, we've got you covered.

9. SMALL BUSINESS LOAN

11

Small business loan establish business concerns with

minimum three years standing. New units with family background of that trade
may be concern.

BUSINESS REVIEW

Central Bank of India Ltd. Financial sector reforms were initiated as part of
overall economic reforms in the country and wide ranging reforms covering
industry, trade, taxation, external sector, banking and financial markets have
been carried out since mid1991. A decade of economic and financial sector
reforms has strength ended he fundamentals of the Indian economy and
transformed the operating environment for banks and financial institutions in
the country. The sustained and gradual pace of reforms has helped avoid any
crisis and has actually fuelled growth. As pointed out in the RBI Annual Report
2001-02, GDP 200102averaged6.0%against 5.8% recorded during 1980-81 to
1989-9
Growth in the 10 years after reforms i.e. 1992-93 to 0 in the pre-reform peril the
most significant achievement of the financial sector reforms has been the
marked improvement in the financial health of commercial banks in term of
capital adequacy, profitability and asset quality as also greater attention to risk
management. Further, deregulation has opened up new opportunities for banks
to increase revenues by diversifying into investment banking, insurance, credit
cards, depository services, mortgage financing, securitization, etc. At the same
time, liberalization has brought greater competition among banks, both
domestic and foreign, as well as competition from mutual funds, NBFCs, post
office, etc. Post-WTO, competition will only get intensified, as large global
players emerge on the scene. Increasing competition is squeezing profitability
and forcing banks to work efficiently on shrinking spreads. Appositive fallout of
competition is the greater choice available to consumers, and the increased level
of sophistication and technology in banks. As banks benchmark themselves
against global standards, there has been a marked focus on corporate
governance.

11

Major Reform Initiative Some of the major reform initiatives in the last
decade that have changed the face of the Indian banking and financial sector
are:
Interest rate deregulation. Interest rates on deposits and lending have been
deregulated with banks enjoying greater freedom to determine their rates.
Adoption of prudential norms in terms of capital adequacy, asset classification,
income recognition, provisioning, exposure limits, investment fluctuation
reserve, etc. thus releasing more lendable resources which banks can deploy
profitably.Shri Arun Kumar Prewar is Chairman, Central Bank of India. He has
more than three decades o
Reduction in pre-emption lowering of reserve requirements (SLR and
CRR),f experience in banking having successfully handled significant
assignments. His earlier stints at the bank included; Deputy Managing Director
and Chief Credit Officer of the bank responsible for streamlining the working of
the credit process of the bank; chief executive officer of the Tokyo branch. He is
also the chairman of the associate banks of CBI.
Government equity in banks has been reduced and strong banks have been
allowed to access the capital market for raising additional capital.
Banks now enjoy greater operational freedom in terms of opening and
swapping of branches, and banks with a good track record of profitability have
greater flexibility in recruitment.
New private sector banks have been set up and foreign banks
Permitted to expand their operations in India including through subsidiaries.
Banks have also been allowed to set up Offshore Banking Units in Special
Economic Zones.
New areas have been opened up for bank financing: insurance, credit cards,
infrastructure financing, leasing, gold banking, besides of course investment
banking, asset management, factoring, etc.

11

 New instruments have been introduced for greater flexibility and better risk
management: e.g. interest rate swaps, forward rate agreements, cross currency
forward contracts, forward cover to hedge inflows under foreign direct
investment, liquidity adjustment facility for meeting day-to-day liquidity
mismatch.
Several new institutions have been set up including the National Securities
Depositories Ltd., Central Depositories Services Ltd., Clearing Corporation of
India Ltd., Credit Information Bureau India Ltd.
Limits for investment in overseas markets by banks, mutual funds and
corporate have been liberalized. The overseas investment limit for corporate has
been raised to 100% of Net worth and the ceiling of $100 million on
prepayment of External commercial borrowings has been removed. MFs and
Corporate can now undertake FRAs with banks. Indians Allowed to maintain
resident foreign currency (domestic)accounts. Full convertibility for deposit
schemes of NRIs
Introduced.
Universal Banking has been introduced. With banks Permitted to diversify into
long-term finance and DFIs into working capital, guidelines have been put in
place for the Evolution of universal banks in an orderly fashion.
Technology infrastructure for the payments and settlement System in the
country has been strengthened with electronic funds transfer, Centralized Funds
Management System, Structured Financial Messaging Solution, Negotiated
Dealing System and move towards Real Time Gross Settlement.
Adoption of global standards. Prudential norms for capital adequacy, asset
classification, income recognition and provisioning are now close to global
standards. RBI has Introduced Risk Based Supervision of banks (against the
traditional transaction based approach). Best international practices in
accounting systems, corporate governance, payment and settlement systems,
etc. are being adopted.
Credit delivery mechanism has been reinforced to increase the flow of credit
to priority sectors through focus on microcredit and Self Help Groups. The
definition of priority sector has been widened to include food processing and
cold storage, software up to Rs 1 corer, housing above Rs 10 lash, selected
lending through NBFCs, etc.
11

 RBI guidelines have been issued for putting in place risk management systems
in banks. Risk Management Committees in banks address credit risk, market
risk and operational risk. Banks have specialized committees to measure and
monitor various risks and have been upgrading their risk management skills and
systems
.
The limit for foreign direct investment in private banks has been increased
from 49% to 74% and the 10% cap on voting rights has been removed. In
addition, the limit for foreign institutional investment in private banks is 49%
.
Wide ranging reforms have been carried out in the area of capital markets.
Fresh investment in CPs, CDs are allowed only in dematerialized form.SEBI
has reduced the settlement. Cycle from T+3 to T+2 from April 1, 2003 i.e.
settlement of stock deals will be completed in two trading days after the trade is
executed, taking the Indian stock trading system ahead of some of the
developed equity markets. Stock exchanges will set up trade guarantee funds.
Retail trading in Government securities has been introduced on NSE and BSE
from January16, 2003. A Serious Frauds Office is proposed to be set up.
Fungibility of ADRs and GDRs allowed.
Improvement in performance of commercial banks
There is no doubt that banking sector reforms have increased the profitability,
productivity and efficiency of banks. There has been an improvement in overall
capital adequacy of banks and as on March 31, 2002 92 out of 97 commercial
banks operating in India had capital adequacy above the statutory minimum
level of 9%. Introduction of prudential norms relating to asset classification,
income recognition and provisioning, along with legal and institutional reforms,
has led
to visible improvement in asset quality in banks. Net NPAs (i.e. that portion of
NPAs which is not provided for) have declined gradually from 10.7% in 199495 to 5.8% in 2001-02.increase in the number of players has increased
competition,
Which is reflected in the decline in the bank concentration ratio? The share of
top 5 banks in total assets declined from51.7% in 1991-92 to 43.5% in 2001-02

11

while its share in profits fell from 54.5% to 41.4% in the same period.
Despiteinten ossification of competition and introduction of prudential norms,
all major bank groups in India have remained profitable. The Return on Assets
has hovered in the range of0.5-0.8% since the mid-1990s while this is on the
lower side
compared to many developing countries, it is higher than the profitability at
around 0.5% in industrialized countries. The improvement in efficiency is also
seen from the intermediation cost for scheduled commercial banks, which
declined from2.85% in 1996-97 to 2.19% in 2001-02. According to data
analyses by RBI, there has been a noticeable decline in the difference between
real interest rates in India and international benchmark rates (LIBOR 1 year)
since the mid-1990s,suggesting increased integration of the Indian banking
sector
with the rest of the world.
Challenges Ahead
(i) Improving profitability: The most direct result of the above changes is
increasing competition and narrowing of spreads and its impact on the
profitability of banks. The challenge for banks is how to manage with thinning
margins while at the same time working to improve productivity which remains
low in relation to global standards. This is particularly important because with
dilution in banks
Equity, analysts and shareholders now closely track their performance. Thus,
with falling spreads, rising provision for NPAs and falling interest rates, greater
attention will need to be paid to reducing transaction costs. This will require
tremendous efforts in the area of technology and for banks to build capabilities
to handle much bigger volumes.
(ii) Reinforcing technology: Technology has thus become a strategic and
integral part of banking, driving banks to acquire and implement world class
systems that enable them to provide products and services in large volumes at a
Competitive cost with better risk management practices. The pressure to
undertake extensive computerization is very real as banks that adopt the latest in
technology have an edge over others. Customers have become very demanding
and banks have to deliver customized products through multiple channels,
allowing customers access to the bank round the clock.
11

(iii) Risk management: The deregulated environment brings in its wake risks
along with profitable opportunities, and technology plays a crucial role in
managing these risks. In addition to being exposed to credit risk, market risk
and operational risk, the business of banks would be susceptible to country risk,
which will be heightened as controls on the movement of capital are eased. In
this context, banks are upgrading their credit assessment and risk management
skills and retraining staff, developing a cadre of specialists and introducing
technology driven management information systems.
(iv) Sharpening skills: The far-reaching changes in the banking and financial
sector entail a fundamental shift in the set of skills required in banking. To meet
increased competition and manage risks, the demand for specialized banking
Functions, using IT as a competitive tool are set to go up. Special skills in retail
banking, treasury, risk management, foreign exchange, development banking,
etc., will need to be carefully nurtured and built. Thus, the twin pillars of the
banking sector i.e. human resources and IT will have to be strengthened.
(v) Greater customer orientation: In todays competitive environment, banks
will have to strive to attract and retain customers by introducing innovative
products, enhancing the quality of customer service and marketing a variety of
products through diverse channels targeted at specific customer groups.
(vi) Corporate governance: Besides using their strengths and strategic
initiatives for creating shareholder value, banks have to be conscious of their
responsibilities

towards

corporate

governance.

Following

financial

liberalization, as the ownership of banks gets broad based the importance of

institutional and individual share holders will increase. In such a scenario, banks
will need to put in place a code for corporate governance for benefiting all
stakeholders of a Corporate entity.
(vii) International standards: Introducing internationally followed best
practices and observing universally acceptable standards and codes is necessary
for strengthening the domestic financial architecture. This includes best
practices

11

in the area of corporate governance along with full transparency in disclosures.

In todays globalised world, focusing on the observance of standards will help
smooth integration with world financial markets.

11

Chapter-2
COMPANY PROFILE

COMPANY PROFILE
The present central bank twenty years later. Having gained independence,
African and Asian Countries also established central banks or monetary unions.

11

The People's Bank of China evolved its role as a central bank starting in
about 1979 with the Introduction of market reforms, which accelerated in 1989
when the country adopted a generally Capitalist approach to its export economy.
Evolving further partly in response to the European Central Bank, the People's
Bank of China has by 2000 become a modern central bank. The most recent
bank model, was introduced together with the euro, involves coordination of the
European National banks, which continue to manage their respective economies
separately in all respects Other than currency exchange and base interest rates.
The main monetary policy instruments available to central banks are open
market operation, Bank reserve requirement, interest rate policy, re-lending and
re-discount (including using the Term repurchase market), and credit policy
(often coordinated with trade policy). While capital Adequacy is important, it is
defined and regulated by the Bank for International Settlements, and Central
banks in practice generally do not apply stricter rules.
Central Bank of India
A government-owned bank, is one of the oldest and largest commercial banks
in India. It is based in Mumbai.[2] The bank has 3,563 branches and 270
extension counters across 27 Indian states and three Union Territories.
MR.M.V TANKSALE [3] has been appointed as Chairman & Managing
Director, Central Bank of India with effect from June 29, 2011.Prior to his
appointment as Chairman & Managing Director, Central Bank of India Shri
Tanksale was the Executive Director, Punjab National Bank since March 2009.
Central Bank of India, one of the leading Public Sector Banks in the country has
paid a Dividend of Rs.192.66 crore to the Government of India for the Financial
Year 2010-11. Shri M V Tanksale, Chairman & Managing Director, Central
Bank of India has handed over the Dividend Coequal of Rs.192.66 crore to
(Centre) Honble Union Finance Minister Shri Pranab Mukherjee on 19/08/2011
at New Delhi.
Central bank of India is one of 18 Public Sector banks in India to get
recapitalisation[4] finance from the government over the next 24 months. The
infusion of funds will improve the financial health of the banks as their capital
adequacy ratio (CAR) will be raised more than desired level of 12 percent. The
increase in CAR of the banks will also enable them to lend more money. The
CAR of Central Bank of India was less than 12 percent as on 30 June 2006.
The wholly owned public sector bank, based in Mumbai, will convert an
amount of Rs. 800 crore out of its Rs. 1,124.14-crore total equity capital into
perpetual non-cumulative preference shares.The preference shares would carry
an annual floating coupon rate of eight per cent, which would be benchmarked

11

to 100 basis points above the repo rate. It will shore up the balance-sheet of the
bank and enable it to raise capital from the markets.
According to an official statement, the equity capital restructuring would
lead to an improvement in the bank's credit rating as also facilitate the adoption
of Basel II norms.
For financial year 2008-2009, Central Bank of India's Q3 standalone net
profit went up at Rs 353.26 crore from Rs 201.01 crore (YoY). The bank's
standalone net interest income, NII was up at Rs 671.94 crore versus Rs 544.85
crore (YoY).[5]
Central Bank of India has approached the Reserve Bank of India (RBI)
for permission to open representative offices in five locations - Singapore,
Dubai, Doha, London and Hong Kong. This is the first time the bank is
venturing an independent overseas foray after the Sethia scam in the 1970s
forced the bank to close down its London office. RBI had then asked the other
two banks, who had operations in London, to close down.[6]
As on 31 March 2011, the bank's reserves and surplus stood at Rs.
6,868.85 crore. Its total business at the end of the last fiscal amounted to Rs.
2,09,757.33 crore. The bank had staff strength of 37,241 as on Nov 2006.
Central Bank of India partnered with TCS [Tata Consultancy Services ]
for its Core Banking Solution.[7] The solution set to be implemented will include
B@NCS from Sydney-based Financial Network Solutions (FNS), Exim Bills
Trade Finance software from China Systems and treasury from TCS. With all of
its branches in the core banking system (CBS).

HISTORY

11

It was established on 21 December 1911 by Sir Sorabji Pochkhanawala with Sir

Pherozesha Mehta as Chairman,[8] and claims to have been the first commercial
Indian bank completely owned and managed by Indians.
In 1923, it acquired the Tata Industrial Bank in the wake of the failure of the
Alliance Bank of Simla.
In 1969, the Indian Government nationalized the bank on 19 July, together with
13 others.

CENTRAL BANK OF INDIA

11

CHAPTER - 3
RESEARCH METHODOLOGY

RESEARCH MATHODOLOGY

11

To study the loan procedure of CBI to understand the value of

documentation to analyze the loan procedure of the schemes of CBI
Research methodology refers to the systematic process of collection data,
planning and scope of study. I have adopted the Exploratory research method
only of CENTRAL BANK OF INDIA {CBI} lone procedure schemes is very
good and very easy process.
Research methodology is observe CBI bank which types giving a lone of
the customers and which types they are provided the services and which type
motivated the customers.
Research methodology is an important role play in the lone process its
under doing the planning of the lone process and managing the records.
Research methodologys under recorded HOME LOAN, CAR LOAN,
BUSINESS LOAN, etc and recorded which periods this lone giving like that
short-term loan, long-term loan, or medium-term loan it is recorded.
Research methodology as an play important role in the loan giving
process and its important also bank loan.
To study the loan procedure of CBI to understand the value of
documentation to analyze the loan procedure of the schemes of CBI.

11

DATA COLLECTION

DATA COLLECTION

11

Data Collection The task of data collection begin after a researches should keep in
mind two type primary data and secondary data are those which are
collection afresh add for the first time and thus happen to be original in
character the secondary data on the other hand and those which have
already been collected by someone else and which have already been
passed through the statistical process both primary data and secondary
data were used accomplishment of object of the research.

Tools of Data Collection-

1. Primary data
2. Secondary data
Primary data:This is method of data collection is quite popular particular
in the case of big enquires it is being adapted at the private individual is
research worker private individual is research workers private and public
organization the tools for collection of data will be collection through internal as
well as external source.
In this study the question is the primary from data collection which is
given a good help in study getting the well response in the systemic manner.

Secondary data: -

11

Companies hand book for debater model leaflet. , Book,

Website, Journals, and Magazines.
Limitation of study1) The data are given for year 2011 only.
2) The loan cases are net exactly as per bank case
3) The selection product information is given
4) Interest rates are not fixed it is change as per time being

DATA ANALYSIS
11

Interpretation

DATA ANALYSIS

11

Every person has their own dream to purchase any asset or fulfilling their
financial needs today it is easy. I analysis the procedure of CBI Bank following
point should be,
Noted this are as under
1.
2.
3.
4.
5.
6.
7.

Various financial scheme

Easy procedure
Less documentation
Flexible repayment scheme
Payments short time
uniform at customer service
Efficient recovery system

CBI loan Book

11

Large corporate =10%

Business loan= 29%
Education

=2%

Other loan

=1%

SME/Two wheeler
Loan=20%
Agriculture loan =10%
Auto loan =2%
Housing =10%
International=16%
Personal loan =44%

This pay-chart under large corporate 8%, business loan 25%, education
loan 1% other loan 2%, two wheeler loan 19%, agriculture loan 9%, auto loan
2%, housing loan 10%, international 14%, personal loan 44%.
In this pay charts under personal loans percentage is more and
second more percentage is business loan. Pay charts under this is show
percentage of loan.

Interpretation

11

 The two wheeler loan are higher than education loan because of there
are great demand of two where loan

The personal loan is higher than the agriculture loan because the
personal loan is demand is higher as compare o f agriculture loan
Business loan. is more demanded as compare to other loan because the
ratio of business loan is higher

Why we currently prefer CBI over other bank?

Six reason to we currently prefer CBI over other bank

1. Cash franchise of 42% provides comfort on margin sustainability for

CBI
.
2. Thought Cash for other bank will also improve from the current 27%
we believe CBI liability franchise will strength then farther with the
opening of 2000 branches in fv09
3. Asset liability match CBI is better.
4. CBI has better liability match with 60% of liabilities of more than
1year maturity whilen7% of assets have more than 1year maturity
.

11

5. Other bank has 43% of its liability with more than 1 year maturity
while 61% of assets have more than 1 year maturity
.
6. proxy insurance plays on both
7. Any upside on insurance reform can be played through CBI as well
8. Cost ratios of CBI life are better than other bank prudential life due to
its strong bank insurance model and better agency productivity.

11

Hypothesis

HYPOTHESIS

11

1) The CBI has more number of schemes than any other public sector or private
sector banks.

2) The processing of the CBI takes less time than any other banks.

3) The documentation of the CBI is better than any other banks.

4) The recovery of the CBI is faster than any other banks.

5) The schemes of the CBI are more convenient compared to any other schemes
of the other banks.

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Chapter - 4
Objective

OBJECTIVES

11

of study

1) To study the different product i.e. the various lone schemes provided
by CBI relating to Home Lone, Personal Lone, Education Lone, Car Lone,
Commercial Lone, Long-term and Short-term business Loan, etc.
2) TO EXTEND BANKING SERVICES AT THE CUSTOMER
CONVENIENCE.
3) TO UNDERSTAND IN BANK SECTOR, A SECURED LOAN IS MORE
IMPORTANT THAN AS COMPARED TO UNSECURED LOAN.
4) IN CBI BANK BY EASY LOAN PROCESS AND LESS DOCUMENT THE
FAST DEVELOPMENT IN BANKING SECTOR AND INCREAING IN
RATIO OF CUSTOMER.
5) TO STUDY THE LOAN PROCEDURE OF CBI BANK.
6) TO UNDESTAND THE VALUE OF DOCUMENT.
7) TO ANALYSE THE LOAN PROCEDURE OF THE SCHEMES OF CBI.
8) BY THESE PROJECT WE UNDESTAND WHO THE CBI BANK
MANAGE THE RISK IS BANK SECTOR.

CHAPTER - 5
11

Loan PROCESS AND DOCUMENTATION

CENT RENTAL LOAN

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Purpose:
Personal or business and for lawful purposes. Not for speculative
purpose.
Eligibility:
Property in metro urban, semi-urban area leased out to government semigovernment, public sector reputed corporations, multinational companies etc.
Quantum of Loan:
Maximum Rs.10crores.
Security:
EM of:
100% of proposed loan in case the loan is repayable within 36 months.
133%of proposed loan in case the loan is repayable beyond 36 months.

Guarantee:
Personal Guarantee of joint/co-owner of the property (if any) Personal
guarantee of all Directors.

Repayment:
Maximum 120 months or the unexpired period of lease, whichever is
earlier?

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Interest rate:
Base rate + 5.00% for loan up to 3 years.
Base rate + 6.00% for loan above 3 years.
Processing fee:
1% of the loan amount subject to minimum of Rs 5000 & maximum
Rs.200000.

PL TO CORPORATE EMPLOYEES LOAN

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Purpose:
Personal / Domestic
Eligibility:
Permanent employees of large corporate Clients.
Target Group:
All employees of Corporate Clients who enjoy credit facility with our
bank and employees of other Corporate also who are not enjoying any credit
facility with us.
Quantum of Loan:
Twenty times of gross salary subject to maximum of Rs. 500,000/- and
minimum net home pay of 40% of gross salary after taking into consideration
payment of statutory dues, repayment of varies loans including the instilment of
proposed loans.

Security:

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Salary to be routed through account maintained with our branch.

The borrower should give an irrevocable undertaking for not transferring
salary account to any other bank during currency of loan. Such undertaking
should be got registered with/acknowledged by the employer.
Guarantee:
Personal Guarantee of joint/co-owner of the property (if any) Personal
guarantee of all Directors (in case of Corporate Borrowers)
Repayment:
36 months-EMIs
Interest rate:
Base Rate +3.50%
Processing fee:
Waived till 31.3.2013
Rs.500/-per proposal Interest Rate Applicable till 31.3.2013

PL TO CORPORATE EMPLOYEE LOAN

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Purpose:
Personal/Domestic
Eligibility:
Permanent employees of Railways, Government institutions central and
state Government, Schools, Hospitals, etc.having completed 5 years of service
and drawing salary through our branches.
Quantum of Loan:
Twenty times of gross salary subject to maximum net home pay of 40%
of gross salary after taking into consideration payment of statutory dues,
repayment of various loans including the installment of proposed loan.
Security:
Salary to be routed through account maintained with our branch.
The borrower should give an irrevocable undertaking for not transferring
salary account to any other bank during currency of loan. Such undertaking
should be got registered with/acknowledged by the employer.
Guarantee:
Third party guarantee by a person having worth at least equal to loan
amount and acceptable to bank.

Repayment:
48 months-EMIs

Interest rate:

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Base rate +4.50%

Processing fee:
Waived till 31.3.2013
Rs.500 per proposal
Interest rate applicable till 31.3.2013

CENT DOCTOR LOAN

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Purpose:
Purchase of equipment, setting up of clinic, X-ray, pathological
Laboratory, Nursing Home, Poly Clinics etc. clinic-cum-residence, existing
premises.
Quantum of Loan:
Minimum-Rs.100000/Maximum: Rs.50000000/Rural/Semi-Urban areas-Rs.50.00 lakh
Urban/Metro Areas-Rs.500.00 lakh
Security:
Primary-Hypothecation of assets acquired out of bank finance. EM of
property in case of building.
Collateral-No guarantee/Collateral for loans up to Rs.100.00 lakh, which
are to be covered under CGTMSE
Guarantee only. For loans above Rs.100.00 lakh, collateral up to at least 50% of
loan amount to be taken.
Guarantee:
For loan above Rs.100.00 lakh, Personal Guarantee of all the partners,
promoter Director, Trustees to be taken in case of partnership, Limited
Company and Trust account respectively.

Repayment:

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For purchase of equipment etc.

Maximum period up to 84 months including moratorium period of 6 months.
Interest rate:
Base rate+2.25% for purchasing of equipment, working capital etc.
Base rate+2.50% for construction lone of Nursing Home/Clinic/cliniccum-residence.
Processing fee:
0.5% of loan amount Maximum Rs.10000/-

CENT PERSONAL GOLD LOAN

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Purpose:
To meet urgent personal expenses like marriage/ medical/ educational
needs etc. for individual of 18 years and above including staff member.
Quantum of Loan:
Minimum Rs.10,000/Maximum Rs.10,00,000/Security:
Pledge of gold ornaments / gold coins sold by our Bank of 22 Carat
purity.
Margin:
Minimum of 20%
Maximum limit of loan per gram:
Rs.1500/- per gram of gold ornaments and Rs.1700/- per gram of gold
Coins maintaining margin of 20%or 80% of current bullion market price,
whichever is less.
Repayment:
12 to 36 Month. In the case of overdraft facility, the limit to be reviewed
on annual basis.

Interest rate:

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Overdraft: Base Rate 2.00%

Demand Loan: Base Rate3.00% with monthly rests.
Processing fee:
Waived till 31.3.2013
0.5%of the loan amount applicable
Appraiser fee
Interest Rate Applicable till
31.3.2013

CENT COMPETITIVE EXAM LONE

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Purpose:
To pay coaching fee of students who desire to undergo coaching in
reputed institutes for preparing themselves to appear for competitive Entrance
Exam for admission on merits to professional Courses (Engineering, MBBS,
MBA and post graduation courses etc.) or to pay coaching fee of students/
employed individuals for appearing CIVIL SERVICES Exam of UPSC for
employment in central Government Services (viz. IAS,IPS etc).
Student Eligibility:
Should have completed or pursuing class XI and above aspiring for
admission in Engineering, MBBA, MBA, post-graduation course etc.
Student pursuing graduation/post-graduation courses or employed individuals,
aged 26 or below, desirous of competing for Civil Service Exam of UPSC for
employment in IAS, IPS etc.
Quantum of Loan:
Rs.2 lacs per children for coaching studies in India.
Maximum amount per parent / guardian Rs. 4 lacs for two children.
Margin:
10% of the coaching fee (Banks finance will be 90%of a coaching fee or
Rs 2 lakh per child / student, whichever is lower)

Repayment:

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Repayment to commence 3 months after first disbursement of the loan.

Maximum Repayment period 36 months.
Interest rate:
Male

: Base Rate+4.00%

Female/SC/ST/Minorities

: Base Rate3.50%

Processing fee:
Rs.200/-

DIRECT HOUSING LONE

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Purpose:
For construction / acquiring of new or existing house/flat not older than
30 years, extension in the existing house/flat, repairs/renovation/alteration of
existing house/flat.
Eligibility:
Individuals, salaried employees, self-employed persons, professional, any
other persons, professional, any other person having a legal, identified and
regular source of income.
The applicants must be 18 years old (completed) as on the date of
application.
Quantum of Loan:
90% of the cost of construction/ purchase of new / existing flat/ house or
cost of extension of existing house/flat for loans up to Rs.25 lakh.
75% of the cost of construction/ purchase of new / existing flat/ house or
cost of extension of existing house/flat for loans above Rs.25 lakh
Margin:
Loan up to 25 lakh-10%
Loan above 25 lakh-25%

FINANCE SCHEME

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Security:
Equitable / registered mortgage of the property being financed.
Guarantee:
Condition of guarantee is waived of for salaried of for salaried individual
irrespective of loan amount.
In case of self employee/ others for loan up to Rs.20 lakh no guarantee is
required.
Repayment:
Maximum period of 25 years or age of retirement or on borrower
reaching the age of 70 years whichever is earlier.
Prepayment charges:
Nil in case borrower repays entire loan amount out of his/ her own
sources. 1% of outstanding amount if account is taken over by other bank/FIs.

Rate of Interest:

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Up to 30
lakh

Above 30 lakh
& up to 75 lakh

Tenure

Floating

Floating

Up to 5
Yrs

BR

BR+
0.75

BR+
1.00

Over 5 yrs &

less than 10 yrs

BR+
0.25

BR+
1.00

BR+
1.25

10 yrs &
above

BR+
0.50

BR+
1.25

BR+
1.50

Processing fee:
Waived till 31.3.2013
0.50%, maximum Rs. 20000/Interest Rate Applicable till
31.3.2013

HOME LOAN PLUS

11

Above 75
lakh

Purpose:
Refurbishment/renovation/furnishing of house or buying furniture/LCD
TV/ home theatre etc.
Eligibility:
Existing borrowers under direct housing finance scheme having
completed minimum 3 years of repayment schedule without any default.
In case housing loan is in joint name, both the joint borrowers should
joint as borrower for loan consent/ no objection for extending charge of house
property created out of housing loan should be obtained.
Quantum of Loan:
Maximum of Rs. 10.00 lakhs
Margin:
25% on the present market value of the property for aggregate loan up to
Rs. 30 lakhs including the proposed limit under this scheme.
35% on the present market value of the property for aggregate loan above
Rs.30 lakhs including the proposed limit under this scheme.

Security:

11

Extension of mortgage on the house property for which housing loan was
sanctioned.
Interest rate:
Rate of interest as applicable to banks existing housing loan scheme in
case of renovation.
Repayment:
10 years in equal monthly Installments.
Processing fee:
Rs.500/- for each loan

CENT VEHICLE LOAN

11

Purpose:
To purchase two wheeler I.e. scooters, Mopeds, Motor Bikes, electronic
bikes and four wheeler for personal use.
Eligibility:
All individuals age 18 years and above salaried, self employed,
entrepreneurs companies, proprietor partnership firm and trustees.
Salaried Persons (Min. Income):
i)
ii)

For 4 wheelers Rs. 15000/- p.m.

For 2 wheelers Rs. 5000/- p.m.

Other than salaried persons:

i)
ii)

For 4 wheelers Rs. 180000/- p.a.

For 2 wheelers Rs. 60000/- p.a.

Quantum of Loan:
Indian made vehicles: Rs.20.00 lakh
Imported Vehicles: Rs.40.00 lakh

Margin:
New vehicles:
Up to Rs.20 lakh: 15%
More than Rs.20 lakh: 25%
Security:

11

Hypothecation of vehicle/registration with RTA

Interest rate:
Repayment up to 36 month= B.R. +1.00
Beyond 36 month= B.R. +2.50
Second hand vehicles= B.R. + 4.00
Repayment:

i)

In case of new vehicles:

For 4 wheelers=Maximum 84 months
For 2 wheelers=Maximum 48 months

ii)

In case of old vehicles:

Up to 2 years old= maximum 36 month
More than two years old= maximum 24 months

Processing fee:
Waived till 31.3.2013
2-wheelers: Rs. 500/- per proposal
4- Wheelers: Rs. 2000/- per proposal
Interest Rate Applicable till
31.3.2013

CENT MORTGAGE LOAN

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Purpose:
To meet any personal or business needs, but not for any speculative
purpose / real estate activity / capital market activity.
Eligibility:
Individuals including staff, traders, business men, professional, self
employed, proprietary partnership firm, companies and NRIs. Loan against
mortgage of immovable property located in metro/urban/semi urban/Rural
Centers.
Quantum of Loan:
Minimum: Rs.1 lakh
Minimum: Rs.100.00 lakh for property located in rural area and
Rs.1000.00 lakh for property located in other areas.
Security:
EM of non-encumbered residential house/flat, commercial or industrial
property situated in metro/urban/semi-urban/rural centers only in the name and
profession of the borrower either self-occupied or vacant or partially rented
out/leased out. The value of property should be equal to 150-200% of the loan
amount.
Interest rate:
Base Rate+4.50%
Repayment:
Maximum 120 EMIs.
Repayment of EMIs through ECS mandate/post dated cheques.

Processing fee:
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Term loan: 0.50%of loan amount,

Maximum Rs. 20000/Overdraft: 0.50% of loan amount,
Maximum Rs. 10000/-

CENT TRADE LOAN

11

Eligibility:
All types of trades including retailers/ distributors/ commissions agents/
dealers of major companies etc.
Quantum of Loan:
Maximum Rs.500.00 lakhs per borrower
Security:
For loan up to Rs.20.00 lakh the market value of the property should be at
least 150% of loan amount and Realizable value should be minimum 120% of
the loan amount.
For loan above Rs.20.00 lakh, the market value of the property should be
at least 200% of the limit and realizable value should be minimum 150%.
Interest rate:
Base Rate+3.00%
Processing fee:
Up to Rs.25000/- :Rs.100/- per proposal
> Rs.25000/- up to Rs.2 lakh: Rs.300/-per proposal.
>Rs.2lakh:0.5% of the limit (maximum Rs.50000/- for TL & Rs.20000/- for OD
at the time of sanction). Renewal charges @0.10 % of limit, maximum
Rs.5000/Insurance:
The property will be insured against fire, riots wherever required and also
against other appropriate hazards, such as earthquake, flood, lighting etc. with
banks clause for full value of the property.

CENT VIDYARTHI LONE

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Purpose:
For pursuing higher studies, in India & Abroad.
Eligibility:
Student should be an Indian National having secured admission to
professional/technical courses through entrance test/ selection process.
Quantum of Loan:
Rs10 lakh for studies in India.
Rs.20 lakh for studies abroad.
Margin:
Up to Rs.4 lakh: nil, Above Rs.4 lakh: in India-5% , Abroad-15% Margin
(Scholarship may be include in margin)
Interest rate:
Type of borrower
Male student
Female SC,ST&IIT
Student

Rate of Interest
BR+2.00%
BR+1.50%

Disbursement:

11

Repayment directly to college / hotel/ mess /airlines etc. In appropriate

cases disbursement to be made to borrowers subject to satisfactory evidence.
Original receipts to submit.
Repayment:
Repayment to commence 12 months after completion of studies or 6
months after securing jobs whichever is earlier.
Maximum period 5 to 7 years. Repayment on EMI basis.

CHAPTER - 6
Data source analysis & interpretation

11

Q1)Do you think CBI has more number of schemes than any other bank ?

yes

no

Cant
say

11

Q2)do you think CBI processing of the takes less time than any other bank ?
yes

no

Cant
say

11

Q3) Do you think the documentation of the CBI is better than any other bank?
yes

no

Cant
say

11

Q4) Do you think recovery of the CBI is faster than any other bank ?
yes

no

Cant
say

Q5) Do you think CBI are more convenient compared to any other schemes of
the other banks ?
yes

no

Cant
say

11

CHAPTER - 7
CONCLUSION

Conclusion

11

CBI bank is the one of the leading bank in India who ma keys the
different types to general public for the fulfillment of their personal and
business need and freak with uneasy repayment and increase standard of living
of people. The CBI bank provided the different types loans to the people with
different rate of inter and less documentation. The SBI bank provided the loan is
much faster than other bank and given the uniform customer services to people
Available in all over India
After all Studies of financial management of CBI bank and there various
financial scheme it should clear by above points

1. The CBI bank provided faster service to customer

2. Finance available as per customer credit.
3. Attractive financial scheme
4. Low interest rate
5. Uniform customer service cover all over India.
6. CBI bank provided more number of services from any other private
and public sector bank
7. CBI bank provided services in less time
8. CBI bank provided easy documentation process

11

It is observe that the CBI bank in the leading bank who provides all types
of finance and service to the customer at a very short time and the management
system of CBI bank is very better and easy for the customer.
The face of banking is changing rapidly. Competition is going to be tough
and with financial liberalization under the WTO, banks in India will have to
benchmark themselves against the best in the world. For a strong and resilient
banking and financial system, therefore, banks need to go beyond peripheral
issues and tackle significant issues like improvements in profitability, efficiency
and technology, while achieving economies of scale through consolidation and
exploring available cost-effective solutions. These are some of the issues that
need to be addressed if banks are to succeed, not just survive, in the changing
milieu.

11

CHAPTER NO -8
SUGGESTION

11

11

SUGGESTION
1) Such as Education loan need for student in this way No deprivation of
opportunity to study due to lack of funds
2) Education loan schemes offer repayment holidays of course period +1 year 6
months after getting a job, whichever is earlier?
3) Tax benefit to the parents under section 80 E of the income tax act
4) Lower interest rate (subject to change as advised by RBI/Bank)
5) Wide spectrum of courses covered
.
Most scheduled nationalized and co-operative banks offer
Educational loan to students under to education loan scheme
Few private banks have also lunched educational loan Scheme before
some years

11

Q.Why a secured loan?

We have seen the difference between an unsecured loan and
Ans: Secured loan it would be relevant to know why a secured loan
Preferred over unsecured loan. It is common knowledge that Lending by a
banker is generally for the economy activity of the Borrower and recovery of
loans given by a banker is mostly dependent on the economic success of the
borrower. Success or failure of an economy activity depends on various macro
and Micro economic factors. A banker lending to a costumer can make an
assessment of only existing macro and micro economic factors and can only
predict success be absolutely certain about recovery of The amount lent if he
solely relies on economy success of the borrower Therefore a banker ask for
further security in form of charge on Of the borrower. The charge created over
the property of the borrower Acts as cushion to absorb the shocks of economic
failure of the Borrower as the banker can safely sell the properties charged to
him and recovered the monies lent .this is the primary reason for preference of
unsecured loan.

11

Questionnaire

1) Why Education loan?

Q2) who provides educational loan?

Q.3) Why a secured loan?

TIME NORMS STIPULATED FOR DIFFERENT LOAN

APPLICATIONS

1) Education loan
i) Within a period of 5 days at RACPCs/RASECCs
ii) Within a period of 7 days at specialized P-segment branches/branch having
P- Segment division
iii) Within a period of 15 days at other branches

2) Car loan
i) Branch/ Ro

3 Days

ii) RACPs/ RASECCs

3 Days

iii) Zonal Offices

10 Days

11

3) Mortgage loan
i) Branch

3 Days

ii) RACPCs/ RASECCs

5 Days

iii) Zonal office

10 Days

4) Rent
Branch

3 Days

Zonal office

10 Days

TIME NORMS FOR RETAIL ASSETS CPC

Proposal sent from Branch to RACPC

1 Day

Ostentation of search report

4 Days

Ostentation of valuation report

2 Days

Sanction of housing loans

6 Days

Sanction of car loans

3 Days

Sanction of education loans

5 Days

Documentation + Disbursal time

3 Days

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TIME NORMS FOR SECC FOR SBF/ SIB SEGMENT

Proposal sent from Branch to SECC

1 Day

Pre sanction visit

2 Days

Date collection time

4 Days

Sanction time

8 Days

Documentation time (new cases)

3 Days

Documentation time
(Enhancement cases)

5 Days

Proposal sent from SECC to Branch

1 Day

Disbursal time

2 Day

Agriculture segment

14 Days

11

Chapter - 8
BIBLOGROPHY

11

BIBLOGROPHY

BOOKS

AUTHOR

FINANCIAL
M.D
MANAGEMENT AGRAWAL

PUBLICATION
RAMESH
BOOK

EDITION
6Th edition

DEPOT
FINANCIAL
R.P.RUTOGI
MANAGEMENT

HIMALAYA

2th edition

Q1)Do you think CBI has more number of schemes than any other bank ?
Q2) Do you think CBI processing of the takes less time than any other bank ?
Q3) Do you think the documentation of the CBI is better than any other bank ?
Q4)Do you think the recovery of the CBI is faster than any other banks?
Q5)Do you think CBI are more convenient compared to any other schemes of
the other banks?
WWW.CBIBANK.COM
www.Centralbankofindia.co.in

FACE BOOK.

http://www.facebook.com/groups/
Centbankcentoffice/

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