They have been created with a read to serve primarily the agricultural areas of India with basic banking and monetary services

C) All Minor Irrigation Schemes like Wells, Pump sets, Sprinklers, Drip Irrigation etc., D) Rural Housing, Mini Dairy, Commercial Dairy, Poultry, Goat & Sheep rearing, Pig rearing etc., E) Solar off grid, Dairy & Poultry Venture Capital funds in co-ordination with NABARD.
F) Personal Loans to the employees and general public like Clean Demand Loans, Housing Loans, Mortgage Loans, Education Loans, Rent+Loans to NRIs etc., g) Jewellery Loans to all public. 2. Core Banking Solutions will enable our customers to transact from anywhere & any branch. 3. National Electronic Funds Transfer (NEFT) facility is made available at all our Branches to enable customers to remit their funds to any bank/any branch in the country.
4. Transactions which are greater than Rs. 2,500/- are sent alerts of SMS (Small Message Service) as a part of security measure. 5. Term Deposits (compared to Commercial Banks) for rural savings for mobilizing and also for encouraging thrift/inculcating the savings habit among the people, higher interest rates are being offered. 6. The Money lending institution is extending personalized & satisfactory services to all its customers. 7.
The Bank is a member of Banking Codes and Standard Board of India (BCSBI) and extending its services with transparent terms & conditions as per the stipulations of the BCSBI. Bank Codes and Standard Bank of India 8. Across the world at overseas centres, individual's Inward remittances were originated. These Inward remittances will be handled in all our branches, as a part of arrangement of money by Western Union Money Transfer scheme.
Time financial assistance was provided to rural artisans, labourers who does not have the land, small and micro entrepreneurs and also to women as an empowerment of farmers, above mentioned are the majored areas covered by Bank as a part of functioning. Providing “Customer centric products” was the major concentration of the Bank aiming at Credit lined which also includes the advancement of operation in a area 5.1
PRODUCTS OF TELANGANA GRAMEENA BANK The Telangana Grameena Bank offering the following services to their customer with high quality performance 5.1.1. Personal Loan to Existing Housing Loan Borrowers Purpose: To meet the personal needs like expenditure on education, marriage, health care, renovation / furnishing of the house etc., other than speculation purpose. Eligibility: All existing home loan customers with a satisfactory repayment record for the last one year.
Loan amount: Minimum Rs. 50,000/- maximum Rs. 10.00 lakhs. Permissible loan amount: 75% of present market value of the property less present outstanding in the house loan account. Processing fee: 0.25% of loan amount with a minimum of Rs. 1000/- Rate of interest: 2% above interest rate charged on existing housing loan 5.1.2.
HOUSING LOAN (SARAL) Eligibility: Individuals over 18 years of age with steady source of income, including persons engaged in agriculture and allied activities Purpose: · Purchase a new flat/ house or construction of a house · Purchase plot of land and construction of house (both) there on. · Purchase an existing (old) house/ flat or extension of existing house. · Takeover the loans from banks/HFC Rate of Interest: 9.75% P.A. 5.1.3.
GOLD LOANS Purpose: (a) Business purpose/ any productive purpose. (b) Consumption purpose/Medical expenses and others. Eligibility of the borrower: (a) All the permanent residents in the service area/operational area of the branch are eligible. (b) Loans should be sanctioned against strict identification and introduction from persons well known to the bank or account holders with KYC norms compliance.
Rate of Interest: Demand Loan : 11.50% P.A Over Draft : 15.00% P.A Swarna Godavari: Introduced on 14.08.2015 Convenient for the employees and others who are having regular monthly income. Term - 21 Months ROI - 13.75%. 5.1.4. AGRICULTURAL 5.1.4.1 KISAN CREDIT CARDS • Crop loans Under Interest Subvention Scheme with lowest rate of interest.
• Kisan Credit Cards are issued to farmers - valid for three years Subject to Annual review. • Financing as per need of the farmers including Term loans.Revolving nature of operations. • Farmers' savings are also accepted in the same loan a/c. • Personal accident benefit for 1 year upto Rs.50, 000/- with borrower's premium of Rs.5/-. (subsidized premium) • Crop insurance under RKBY available for the identified crops.
Weather Based Crop Insurance is implemented as per the Government of India instructions 5.1.4.2 MORTGAGE LOANS (against immovable property) 1. Loans against Immovable Property (for others) 2. Loan amount from Rs.1.00 lac to Rs.10.00 lacs. 3. Loan up to 50% of the market value/ realizable value of the property, taking into consideration 3 years annual income of the mortgagor. 4.
Repayable in 84 EMIs OR Cash Credit for 3 years subject to annual review. 5.1.4.3 PRODUCE MARKETING LOANS Loans up to Rs.10 lakhs against the warehouse receipts of State or Central Govt. warehouse receipts repayable in 12 months BHOOMI VRUDHI (MANA OORU MANA CHERUVU)• Name of the Scheme: BHOOMI VRUDHI Eligibility: All The Farmers Who Were Having Crop loans With the Branch for the Last 2 Years Are Eligible. • A Simple Declaration by The Farmer. • Amount of Loan: maximum Rs.50,000/- (Rs.5000/- per acre ) • Repayment: Half Yearly in 6 Years. • Interest: 12.5% PER Annum (Half Yearly Rests) 5.1.5.
Industry Loans granted to individuals / firms/ corporate for setting up industries (Tiny / Cottage / Small / Medium / Large) in all areas keeping in view the viability of the Project. Bank finances both for the working capital and Term loan requirements. 5.1.6 Trade Loans sanctioned to individuals / firms for whole sale trading purpose, petty business and retail trading purposes. 5.1.7
Self-Employment As part of employment generation the eligible self employment schemes are financed. Loans for setting up business / trade / industry / services; are considered. 5.1.7.1. Laghu Udhyami Credit Card Cash Credit limit of Rs.2.00 lakhs & upto Rs.5.00 lakhs sanctioned for 3 years at a time; for small business units, retail traders, artisans, village industries, SSI & Tiny units and professional & self-employed.
5.1.7.2. General Credit Cards Hassle-free credit up to Rs.25,000/- issued for 3 years, With suitable repayment schedule. 5.1.7.3. Self Help Groups (SHGs) 10 to 20 members per group - loan up to 4 times of their savings / thrift (Min loan of Rs.50, 000/- Sanctioning of Higher limits for economic activity of the SHG members, based on Micro Credit Plan (MCP). 5.1.7.4.
Joint Liability Groups Group financing of tenant farmers / oral lessees / share croppers under Rythu Mitra Group - financing. Financing is done on Similar Lines as being done for SHGs. 5.1.7.8. PERSONAL LOAN SCHEME i. Loans to permanent employees of Govt. / PSU & reputed organisations under check-off facility / post dated cheques. ii. Loans upto Rs.10.00 lakhs (12 months net income/18 months for Singareni Employees) repayable in 60 monthly instalments. 5. 1.8
LOANS TO PENSIONERS Pensioners below 70 years of age are financed up to Rs.4, 00,000/- - Maximum 12 months pension - repayable in 48 monthly instilments. 5.1.9 CASH KEY SCHEME (against Bank Term Deposits) i. Loans are sanctioned against Bank's Term Deposits immediately. ii. Revolving drawls and repayments in the account with cheque book facility. 5.1.10 LOANS AGAINST POSTAL CERTIFICATES Loans will be sanctioned against National Saving Certificate and Kisan Vikas Patras, etc., with suitable repayment terms. 5.
Car loans to individual to for personal loans up to Rs.15.00 lakhs. 6. Mortgage Loans against non-agriculture property up to Rs.40.00 lak 5.1.11 EDUCATION i. Limit up to Rs.10.00 laks for studies in India ii. Limit up to Rs.20.00 laks for studies abroad iii. 1% concession in interest if full interest is paid during the moratorium period. iv.
Repayable in 5 to 7 years after moratorium or six months after getting job by student. v. Easy formalities - Immediate sanction. 5.1.12. HOUSING 1. Rural Housing Scheme i. Loans for repairs of old houses/restructuring/new houses in rural areas. ii. Repayment coinciding with their line of activity such as trade / agriculture. iii. Easy formalities - Immediate sanctions / lower interest rates. 2.
Housing Loan Scheme i. Construction of new house / flat / purchase of old house / flat. ii. Repairs / Renovations of existing houses. iii. Security of proposed house site and building / suitable guarantee. iv. Lower attractive interest rates. v. Interest Eligible for income tax exemption. (as per current rules). 3. Deccan Gram Nivas Housing Loan To Rural Customers • Housing loan semi urban Rs.50.00 lakhs • Concessional interest rate of 10.30% 5.1.13 Other Facilities 5.1.13.1. Farmer's Clubs (Vvv Clubs) A step towards the total development of farmer- community through farmers clubs.
• Volunteer's Group of farmers for rural development. • Educating the farmers on usage of technological innovations with progressive approach. • Development through credit by proper utilisation. • To be ideal /model for other farmers. 5.1.13.2. Multi-City Cheque (MCC) Facility i. The Multi-city Cheque is issued at our selected branches for remittance purposes. ii. The Multi-city Cheque is payable at par on SBH branches all over India. 5.1.13.3.
Other Services i. Issue of Bank Guarantees. ii. Issue of Solvency Certificates. iii. Issue of Demand Drafts/ Banker's Cheques. iv. Safe Deposit Lockers facility. v. Cross Selling of SBI Life Insurance and Mutual Fund Products. 5.1.14. DVANCES SCHEMES Table: 5.1 Scheme for Financing Rural Housing - Deccan Gram Niwas Purpose To provide housing loans to farmers and other rural dwellers Eligibility All individuals (farmers, entrepreneurs, traders, businessmen, employees etc.)
having satisfactorily conducted deposit accounts for two years or whose existing loan account is satisfactorily conducted. Loan amount The maximum loan amount will be 5 times the average annual income subject to a maximum of Rs.15.00 lacs. Security Primary: Equitable / Registered Mortgage of the house / plot or any other tangible security including agricultural land to cover 150% of loan amount.
Rate of interest 11.5% per annum at monthly rests Repayment Repayable in 15 years in equated monthly/quarterly/half yearly/yearly installments. Margin 10% of the project cost Processing fees 0.50% with a cap of Rs. 10000/- Table: 5.2 Mortgage Loan Scheme To “Per” Segment Purpose General Purpose Eligibility • Individuals below 60 years of age, who are: • Employees • Professionals / Self-employed / Persons engaged in Trade, Manufacturing & services Sector / others who are Income Tax assesses • Persons engaged in agricultural and allied activities Income Criteria • Employees: Minimum net monthly income-Rs.8000/- • Others: Minimum net yearly income- Rs.1.00 lakh Loan Amount Minimum Rs. 1.00 lac and Maximum Rs.
25 lakhs Assessment of Limits 36 Times of net monthly income of salaried persons / 3 times of net annual income for others (i.e. Income as per latest income tax return filed less tax payable) or 50% realizable value whichever is less subject to a maximum of Rs . 25.00 lakhs Security Primary: Equitable Mortgage of un-encumbered residential / flat, Non- Agricultural Urban landed property , Commercial or Industrial property standing in the name of the borrower worth minimum 200% of loan Margin 50% of the realisable value (which ever is less) of the property Rate of interest 15% per annum at monthly rests Repayment In 84 equated monthly Installments. Processing Fee 1.10% of the limit sanctioned Table: 5.3
Mortgage Loan Scheme to Trade Segment Purpose To provide hassle free working capital finance/term loans to borrowers in trade & service sector who are willing to furnish mortgage of property of adequate value Quantum of Loan Minimum -Rs.1.00 lac / Maximum Rs.50.00 lacs Category of borrowers considered Retail Traders, / Wholesale traders / Professionals and Self Employed / Small Business enterprises / Manufacturers / Commission agents engaged in trade, manufacturing and services sector Assessment of limits For new as well as existing customers as under: 15% of the projected annual turnover for traders (projected turnover not to exceed 125% of the immediately preceding year's actual turnover) • One year annual income for Professionals & Self Employed • Limits up to 50% of distress value of collateral security (approved by valuer) Security Primary: Equitable Mortgage of un-encumbered residential / flat, Non- Agricultural Urban landed property , Commercial or Industrial property standing in the name of the borrower worth minimum 200% of loan Margin Minimum 50% of distress sale value of immovable property. Processing Fee 1.10% of the limit sanctioned Rate of Interest 15% per annum at monthly rests. Table: 5.4
HOUSING LOAN SCHEME TO NRIs/PIOs Purpose: For purchase of new flat/house or construct a house/ existing house/existing flat/ extension of existing house/ repairs/renovation. Eligibility criteria NRIs who are Indian Passport holders and Persons of Indian Origin (PIOs) holding a foreign passport. POIs means a citizen of any country other than Bangladesh, Pakistan, Afghanistan, Bhutan, Sri Lanka or Nepal and ii)Minimum experience: Has been employed abroad for at least 1 year and presently holding a valid job contract /work permit with regular and verifiable income.
iii) Age: Over 21 years and upto Maximum age of 55 years Loan amount At Urban centre Maximum : Rs. 50.00 lacs Semi-Urban centre Maximum : Rs. 25.00 lacs Rural centre Maximum : Rs.15.00 lacs Repayment period Maximum 20 years. Aggregate repayment obligation should not exceed 50% of NMI/NAI. However, repayment in the above case can be considered to the maximum period i.e., 20 years. Further aggregate repayment obligation should not exceed 50% of NMI/NAI.
Income level Minimum Net Income -Rs. 15,000/- Minimum Net annual Income(NAI) -Rs. 1,80,000/- Margin 15% to 30% of total project cost. Security Registered/Equitable mortgage by deposit of title deeds should be created. Rate of Interest: Housing loans Loans up to Rs. 30.00 lacs -11.50% p.a. Loans above Rs. 30.00 lacs.-12.00% p.a. Processing Fees 0.50% with a cap of Rs.10000 Scheme for Granting Loan against Assignment of Future Rentals 1.
Objectives of the scheme To promote setting up of modern dairy farms for production of clean milk and to generate self-employment. 2. Eligibility 2.1. Farmers, individual entrepreneurs, dairy cooperative societies, milk unions and dairy co-op societies milk federations etc. 3. Subsidy. 25% to 33.33% of outlay for the following components. Table: 5.4 1 Name of the Scheme Deccan Rent Plus 2 Purpose To meet liquidity mis-match of the applicants.
3 Eligible Customer Owners of Residential buildings and Commercial properties which are to be rented or already rented to MNCs /Banks /Large and Medium size Corporates. 4 Quantum of Finance Minimum Rs.50,000/- Maximum Rs. 25.00 lakhs. The loan should be restricted to 75 times of the net monthly rentals receivable or rentals for the residual lease period, whichever is less. 5 Margin 25%.
6 Rate of interest 15% p.a.(to be charged at monthly intervals) 7 Collateral Security Equitable mortgage (and Registration of memorandum of deposit of title deeds with concerned SRO) of buildings against the rentals of which the loan would be sanctioned (value of the property should be double the amount of the loan). 8 Processing Fee: 1.10% of loan amount 5.1.15 Dairy and Poultry Venture Capital Funds - Dairy Entrepreneurship Development Scheme 1.
Objectives of the scheme To promote setting up of modern dairy farms for production of clean milk and to generate self-employment. 2. Eligibility 2.1. Farmers, individual entrepreneurs, dairy cooperative societies, milk unions and dairy co-op societies milk federations etc. 3. Subsidy. 25% to 33.33% of outlay for the following components. No. Component Unit Cost i. Dairy Animals with unit size of 2 to 10 animals Maximum Rs.5.00 lacs ii.
Rearing of heifer calves - cross bred, indigenous descript milch breeds of cattle and of graded buffaloes-upto 20 calves. Rs. 4.80 lakh for 20 calf unit-minimum unit size of 5 calves with an upper limit of 20 calves iii. Vericompost (with milch animal unit. To be considered with milch anilmals and not separately) Rs. 20,000/- iv.
Purchase of milking machines / milkotesters/bulk milk cooling units (upto 2000 lit capacity) Rs. 18 lakh v. Purchase of dairy processing equipment for manufacture of indigenous milk products Rs, 12 lakh vi. Establishment of dairy product transportation facilities and cold chain Rs. 24 lakh vii. Cold storage facilities for milk and milk products Rs. 30 lakh viii.
Establishment of private veterinary clinics Rs. 2.40 lakh for mobile clinic and Rs. 1.80 lakh for stationary clinic ix. Dairy marketing outlet / Dairy parlour Rs. 56,000/- 4. Repayment 4.1. Repayment Period will depend on the nature of activity and cash flow and will vary between 3-7 years. 5. Rate of Interest: up to Rs.2.00 lacs -14% Up to Rs.2.00 to 5.00 lacs - 14.5% 6. Security: i. Loan up to Rs.50000/- -- Hypothecation of asset ii. Loan above Rs.50000/- - a) Hypothecation of asset b) Mortgage of farm land 7. Processing Fee: 1.10% of loan amount.
Telangana Grameena Bank has given emphasis for opening of branches in rural unbanked areas as per the Government of India policy. During the year 2013-14 the bank has opened 31 new branches against the target of 27 branches under MoU and reached 300 mark. Year wise branch details are furnished in the following table Table: 5.6
SPREAD OF BANK BRANCHES DURING 2005-06 TO 2013-14 Area 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 i)Rural 138 (83.64) 138 (83.13) 138 (83.13) 142 (82.08) 149 (74.50) 155 (72.09) 160 (70.80) 168 (69.14) 186 (69.14) 209 (69.67) ii)semi Urban 17 (10.24) 17 (10.24) 17 (10.24) 19 (10.98) 30 (15.00) 35 (15.93) 36 (16.28) 42 (17.28) 50 (17.33) 52 (18.60) iii) Urban 10 (6.06) 11 (6.63) 11 (6.63) 12 (6.94) 21 (10.50) 25 (11.63) 30 (13.27) 33 (13.58) 20 (7.43) 26 (8.67) iv) Metropolitan 13 (4.33) 13 (4.33) Total No.
of Branches 165 (100 166 (100) 166 (100) 173 (100) 200 (100) 215 (100) 226 (100) 243 (100) 269 (100) 300 (100) The above table contains the spread of the branches during the years 2004-05 to 2013-14. The performance indicator shows the branches' development in rural, semi urban, urban areas in 5 districts of Telangana State. On examination of data presented in the above table the most of the branches are Deposits and Advances of the Bank clearly placed at rural areas with 83.64% (138) in the year 2004-05 and maximum reached to 209 branches in the financial year 2013 - 14.
Thirteen (13) branches were started in the metropolitan areas in the financial year 2012-2013. With the above data, it is said that the TGB has less focus on semi urban and urban in areas because it is Under RRB. From the financial years 2007-08 to 2013 -14 the bank zooming on branch expansion and slowly increased, by the end of the 2013-14 (300) during the period under study.
It may be concluded from the analysis that TGB will expand its branches all over the rural areas of Five districts in Telangana State to assist the farmers, rural artisans and small business people to meet their financial needs. 5.3 Deposits and Advances of the Bank The data in the bellow table shows the deposits accepted, Advances given, CD Ratio and Percentage of net NPAs to Net Advances of TGB bank over the period of 10 years from 2005 to 2014.
The Compounded Annual Growth Rate for the period of 10 years from 2005 to 2013-14 for Deposits shows that the Deposits of the bank grew from 932.14 crores in 2005 to 4155.43 crores recording an average of 16.12 per cent growth rate annually. Advances of the bank reach Table: 5.7 DEPOSITS AND ADVANCES OF TELANGANA BANK S.No. Year Deposits Advances CD Ratio Net NPA 1 2005 932.14 229.14 59.98 4.73 2 2006 1011.44 605.93 59.91 4.75 3 2007 1261.75 750.49 59.48 1.64 4 2008 1444.18 1001.41 69.34 0 5 2009 1790.43 1296.38 72.41 0 6 2010 2260.05 1610.78 71.24 0 7 2011 2600.94 1966.16 75.59 0 8 2012 2920.67 2362.37 80.88 1.7 9 2013 3444.92 2775.46 80.57 0.86 10 2014 4155.43 3531.1 84.98 0.42 CAGR (%) 16.12 20.24 3.55 -21.51 to 3531.10 crores in 2014 from 599.14 crores in 2005 showing average growth rate of 20.24 per cent. The CD ratio raised from 59.98 per cent in 2005 to 84.98 per cent in 2014 registering 3.55 per cent growth rate. The percentage of CAGR relating to the Net NPAs to Net Advances has registered a negative growth rate of 21.51 per cent for the 10 years period indicating high decline in the NPAs. It is inferred that the performance in respect of recovery of loans is high. 5.4
Priority Sector Lending Priority Sector Lending primarily consists of lending to Agriculture and allied activities (Farm Sector), and Small Scale Industries, Small Business and Other Priority Sectors like small road and water transport operators, Retail trade, loans to professional and self employed persons, Housing loans etc (Non-Farm Sector). The details of priority sector loans etc (Non-Farm Sector) lending by Telangana Grameena Bank are shown in the following table Table: 5.8
Priority Sector Lending by Telangana Grameena Bank (Rupees in Crores) S.No. Year Farm-Sector Non-Farm Sector Total % of Total Advances 1 2005 241.38 135.79 377.17 67.46 2 2006 258 151.5 409.5 66 3 2007 295.59 224.94 520.54 69.36 4 2008 532.02 156.58 688.59 68.76 5 2009 760.93 156.05 916.98 70.73 6 2010 1006.95 263.13 1270.08 78.84 7 2011 1249.89 294.69 1544.58 78.56 8 2012 1517.7 340.03 1857.73 78.64 9 2013 1802.93 359.24 2162.17 77.9 10 2014 2351.31 464.5 2815.81 65.76 CAGR 25.56 13.09 22.27 Source: Compiled from Annual Reports of Telangana Grameena Bank The above table reveals the Compounded Annual Growth Rate (CAGR) for the period 2005 to 2014 for the total Priority Sector Lending (PSL) is calculated as 22.27 per cent, for Farm-Sector (Agricultural and Allied to Agricultural Advances), it is 25.56 per cent, for advances to Non-Farm Sector, MSMEs (Micro, Small and Medium Enterprises) Units and others, it is 13.09 per cent.
The CAGR for the Farm-Sector Advances surpassed the CAGR for the Total Priority Sector Advances and indicating that the TGB had given much priority to the agriculture and allied activities in lending. 5.5 PROFITABILITY OF THE TELANGANA GRAMEENA BANK Profit can be defined as, in simple terms, as excess of income over expenditure. In order for a business to become self- sustaining and capable of attracting investment, it must generate profits. Otherwise, it will eventually become insolvent.
Without profit, a business would stagnate and risk losing its market share to other competitors. Profits and losses are indications of whether the business is doing the right things or not. It is how the people in the marketplace tell a business what is needed and wanted, what should be eliminated, what should be expanded, what needs to be improved, etc. Profits and losses constitute an important feedback that improves economic efficiency. Profits also enable the business to grow.
If what the business is doing is good, then the business needs to grow so that it can do more good. If business does not make profits, then there's something wrong with what business is doing, and such they deserve to go out of business. It is fact that the absolute figures may not always exhibit the true profitability.
Therefore along with Net Profit, the Return on Assets and Profit per Employee are considered for analysis of the profitability. Table: 5.9 PROFITABILITY TELANGANA GRAMEENA BANK S.No. Year Net Profit (Rs. In Crores Return on Assets (%) Profit per Employee (Rs. In Lakhs) 1 2005 15.4 3.46 3.47 2 2006 17.45 3.87 2.99 3 2007 10 7.58 2.92 4 2008 10 7.97 3.54 5 2009 39.88 8.67 4.42 6 2010 54.9 7.94 5.08 7 2011 45.1 8.47 5.32 8 2012 36.24 8.64 5.17 9 2013 49.28 8.9 6.31 10 2014 63.62 9 6.72 CAGR 15.24 10.03 6.83 Source: Compiled from Annual Reports of Telangana Grameena Bank The above table shows that Telangana Grameena Bank has registered an increase of Net Profit at a Compounded Annual and situation to situation. Growth Rate of 15.24 per cent. The CAGR for Return on Assets has registered a growth rate of 10.03 per cent and Profit per Employee at a rate of 6.83 per cent.