CHAPTER NO.

INTRODUCTION

1. Introduction to the Report

Indian Banking framework is confronting various difficulties with the progression of

innovation. It gets basic for specialist organizations to meet the objective consumer
loyalties with nature of administrations expected by them on its conveyance based
financial administrations. Banking industry is the service industry and providing
various financial services through the application of IT to its customers. The present
research study is an attempt to highlight perception level of 200 customers of ICICI
bank living in district Bareilly with the objective to know the level of awareness and
satisfaction of IT service users of bank in rural areas of India. It is observed that
mostly customers are well aware and satisfied with the IT based banking services.

Globalization and liberalization dominated the each and every sphere of life and
economy of India. Banking which is an essential part of human beings is seemed to
be raped with these reforms and a huge change is seen in Indian banking system.
Before these reforms, people were concise to deposit and withdrawal of money from
the bank and services standard was becoming pathetic. The revolution swapped the
age-age long problems of human being as well as the marketing approach of the bank
to revolve them to customer oriented. Many new foreign banks came into the market
and change the whole scenario of banking system through their modern and
technology-based services. As reason Indian banks were also bound to follow the
latest trend, innovative services and facilities in their working environment to get and
maintain their huge market. With the coming of private sector bank as technology-
savvy banks, provided a lot of facilities to customers by offering them new products,
new services, new market and efficient delivery channels for the banking industry
putting credit, debit, smart card into the hands of customer with the development of
Tele-banking and internet banking. With years, banks are adding administrations to
their clients. The Indian financial industry is going through a period of clients
showcase. The clients have progressively decision in picking their banks. A challenge
has been built up inside the banks working in India. The proficiency of a financial

Page 1
part relies on how it can convey its administrations to target clients in most ideal
manner. So as to make due in this aggressive condition and give persistent consumer
loyalty, the suppliers of banking administration are presently required to ceaselessly
improve the nature of administrations.

A loan is a type of debt like all other debt instrument; a loan entails the redistribution
of financial assets over time between the lender and the borrower.

In a loan the borrower initially receives or borrows amount of money, called the
principal from the lender, and is obligated to pay back or repay an equal amount of
money to the lender at a later time. Typically, money is paid back in regular
instalments or partial repayment in an annuity, each instalment is the same amount.

The loan is generally provided at a cost referred to as interest on a debt, which

provides an incentive for the lender to engage in the loan. In a legal loan, each of
these obligations and the restrictions is enforce by contract, which can also place the
borrower under additional restriction known as the loan covenants. Loan is a an act of
giving money property or other material good to another party in exchange for the
future repayment of the principal amount along with interest. Acting as a provider of
loan is one of the principal tasks for the financial institutions such as banks and credit
card companies. Loans typically are secured loan or unsecured loan. A secured loan
involves pledging an asset such as car, boat and house) as collateral for the loan, if
the borrower default or doesn't pay back the loan, the lender takes possession of the
assets. As unsecured loan option is preferred, but not as common if the borrower
doesn't pay back the unsecured loan, the lender do isn't have right to take anything in
return.

Loans can come from individuals, corporations, financial institutions and

government. They are a way to flow the overall money supply in an economy as well
as open up competitions, introduce new products and expand business operations.
Loan is a primary source of revenue for many financial institutions such as banks, as
well as some retailers through the use of credit facilities.

Page 2
Various Loans Offered by ICICI Bank

Various loan schemes offered by ICICI bank for their customers.

1. Gold Loan

2. Vehicle Loan

3. Mortgage Loan

4. Term Loan

5. Cash Credit

6. Agriculture Loan

Gold Loan

Agricultural
Vehicle Loan
loan

Various Loans
offered by
bank

Mortgage
Cash Credit
Loan

Term Loan

Chart No. 1

Page 3
Vehicle loan

A vehicle loan is basically a loan that you can take out in order to purchase a vehicle.
In a vehicle loan you are not paying on the depreciation of the vehicle like you do
with a lease. Vehicle loan is generally offered by ICICI bank at an interest rate of
14%. You are paying on the vehicle with purchase price plus interest.

Buying the vehicle may be right for you if:

You have the money to make a significant down payment (20% or more)

 You would like to be able to trade in your vehicle.

 You prefer to own your vehicle.
 You like to travel and don't want to have restrictions about mileage
restrictions.
 You are tough on your vehicle and don't want to worry about wear and tear
charges.

Mortgage loan: -

A loan that is secured by a property or real estate is called a mortgage. In exchange

for fund received by the homebuyer to buy property or a home, a lender get the
promise of that buyer to get back the fund within a certain time frame for a certain
cost.

A mortgage loan is also referred to as a mortgage is used by purchasers of real

property to raise funds to buy real estate or by existing property owners to raise funds
for any purpose while putting a lien on the property being mortgaged. The loan is
“secured" on the borrower's property. Mortgage loan is offered at 13% by the bank.

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Term loan:-

A term loan is a monetary loan that is repaid in regular payment over a set period of
time usually last between one and ten years but last as long as 3 years in some case.
A term loan usually involves floating interest rates that will add additional balance to
repay.

Term loan can be given on an individual basis but are often use for small business
loans. The ability to repay over a long period of time is attractive on new or
expanding enterprises as the assumption is that they will increase profit over time.

Term loan provided by ICICI bank may include:-

 Building and Development term loan for working capital

 Plant and Machinery term loan
 Personal loan

Cash Credit

A cash credit is a short term credit provided by a bank. A bank provides this type of
funding but only after the required security is given to secure the loan. Once a
security for repayment has been given the business that receives the loan can
continuously draw from the bank up to a certain specified amount.

Bank offers cash credit account to business to finance their working capital
requirement the cash credit account is similar to the current account. The cash credit
account is supposed to be overdrawn almost continuously. The extent of overdrawing
is limit to the cash credit limit that the bank sanctioned.

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Gold Loan

As the name suggest gold loan is given against gold. Many nationalized banks,
private bank and other financial companies offer this loan at attractive interest rates.
Many go for this loan for the short-term period to meet the requirement of their
children's education, marriage and other financial problems in the family.

Gold loan doesn't demand any certificate to show your salary, your income or no
credit card history is required. One of the main advantages of gold loan is the low
interest rates. Usually loan over gold is provided at the interest of 12- 16% pa and
this is quite low as compared to personal loan which is available at interest rate of 15-
26% pa.

Fixed Deposit Receipt

A fixed deposit receipt issued by the same bank is the safest security for granting an
advance because the receipt represents the debt due from the banker himself. A
banker should grant an advance on a security of a fixed deposit receipt issued by the
other bank because the later possesses its paramount lien over the receipt. It may over
refuse to register the lien of the banker granting a loan against such receipt. The
banker should normally advance a loan to the same person or persons in whose name
the receipt is issued. In case it is issued in case of two or more persons, and loan is
sought by one of them, all the depositors must signed a letter of authority authorizing
the bank to sanction a loan to one of them on the basis of receipt.

Agricultural Loan

Agricultural loan is a broad term that encompasses a number of businesses in

agriculture including food production, farming, agrochemicals, farm machinery,
warehousing, wholesale and distribution, and processing, marketing and sale of food
products. Agricultural loan are available for a multitude of farming purpose to buy
input for the cultivation of food grain crops as well as for the husbandry, floriculture
and sericulture business.

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What is agricultural Loan?

Agricultural Loans are made to farmers to finance farming activities. Short-term

agricultural loans are usually seasonal and are used to finance the purchase of seeds,
fertilizers and livestock. These types of loans usually require a lending officer to
inspect the borrower's farm once a year. These types of financing are adapted to the
specific financial needs of farmers, which are determined by planting, harvesting and
marketing cycles. Short terms credit finances operating expenses, intermediate- terms
credit is used for farm machinery, and long-terms credit is used for real-estate
financing.

Agricultural loan is a broad term that encompasses a number of businesses in

agriculture including food production, farming, agrochemicals, farm machinery,
warehousing, wholesale and distribution, and processing, marketing and sale of food
products.

Agricultural loan are available for a multitude of farming purpose to buy input for the
cultivation of food grain crops as well as for the husbandry, floriculture and
sericulture business. These are also special loan to finance the purchase of
agricultural machinery such as tractors, harvesters and trucks. Construction of biogas
plant and irrigation system as well as the purchase of agricultural land may also be
finance through special type of agriculture finance.

Financial assistance rendered to Agriculture can be broadly classified as direct

finance to agriculture and Indirect finance to agriculture.

Direct finance to individual farmers, for agriculture and allied activities (Dairy,
Fishery, Piggery, Poultry, Bee keeping, etc.

Indirect finance denotes finance provided by banks to farmers indirectly i.e. through
other agencies.

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Sources of agriculture finance

1 non-institutional sources

 Money lenders
 Traders
 Commission agents
 Traders

2 Institutional Source

 Co-operative credit societies

 Commercial Banks
 Regional Rural Banks
 National Banks for Agriculture and Rural Development (NABARD)

MEANING

Agriculture loan as the economic study of borrowing of funds by farmers of the

organization and operation of farm, lending agencies and societies interest in credit
for agriculture.

Agricultural loan helps farmers to run their farm more efficiently. It can be difficult
to keep up with all of the cost associated with running a farm. So farmers need low
interest agriculture loans to helps them stay afloat.

Page 8
1.2 Company Profile

ICICI Bank Limited, Yavatmal

In today’s competitive world, all organizations are focusing on customer

satisfaction. They have shifted their objective from earning profits to provide
customer satisfaction. ICICI Bank is a very good example of this. ICICI Bank is
playing crucial role in the development of trade, commerce. It has also been
contributing towards the economic development of the nation’s economy. Through
my research, I found out what are the services provided by ICICI Bank, and it is also
found whether they are very innovative. This bank has shown a remarkable
performance within a short period of time through its innovative products, services
and the policies. In this research, it is found how ICICI Bank is satisfying its
customers. As the competition in the market has increased as a result the expectations
of the customers have also increased. To meet the expectations of the customers,
ICICI Bank is making efforts by providing new products with faster delivery at
cheaper rates.

Name :-ICICI Bank, Yavatmal

Location :-Yavatmal

Headquarter :-Yavatmal

Branch Head : - Manohar Prabhakar Dev

Yavatmal :-Dutta Square, Yavatmal

Branches :-34

Area of operation : -Yavatmal City

Established :-June 1994

Employee : -40

Page 9
1.3 Statement of the Problem

Banking area in any country is the imperative for building up the business and
economy. Banks are the core of the business part of any economy and supply the
important cash blood to all business associations and at the same time bolster the
more vulnerable divisions or the associations of a country. Clients' fulfilment is the
basic factor that chooses the accomplishment of any bank. Presently a day, Private
Banks are extending their branches in urban just as in provincial territories to get an
ever-increasing number of clients. Brach size, administrations, framework, offices,
staff, working hours and so on is differing as indicated by an area the branch. This
examination covers the provincial financial client's mindfulness and use of the
innovation-based administrations gave by one bank and their fulfilment designs. The
investigation will be useful in expanding the mindfulness, usage and fulfilling the
clients and at last improve the bank's exhibition.

“An arrangement in which a lender gives money or property to the borrower and the
borrower agrees to return the property or to repay the money, usually along with
interest, at some future point (s) in time. Usually, there is a predetermined time for
repaying the loan, and generally the lender has to bear the risk that the borrower may
not repay a loan".

"An amount of money loaned at interest by a bank to a borrower, usually on

collateral security, for a certain period of time"

“A loan may be for a specific, one- time amount or can be available as open-ended
credit up to a specified celling amount".

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1.4 Hypothesis

Alternative hypothesis

1. Customers are aware about the agriculture loans provided by the bank.

2. Customers are satisfied with the agriculture loan available in ICICI Bank Yavatmal
city

Null Hypotheses

1. Customers are not aware about the agriculture loans provided by the bank.

2. Customers are not satisfied with the agriculture loan available in ICICI Bank
Yavatmal city

1.4 Research Objectives

The research work is carried with the motive to achieve the following objectives:

 To know the customers awareness of ICICI Bank Agricultural loans.

 To analyse the perception level of satisfaction of the Agriculture Loans
provided by ICICI Bank Yavatmal.

1.5 Research Methodology

For this purpose, researcher has used descriptive research design, under which
an earnest endeavour was made to obtain the relevant results regarding problems in
hand. Research design includes an outline of everything from defining the problem in
term of objections to final analysis of the data. The present study was conducted in
one private sector bank namely ICICI bank of district Yavatmal Maharashtra. A field
survey has been conducted to know the customers awareness and utilization of the
technology-based services of ICICI Bank in District Yavatmal Maharashtra. With the

Page 11
help of a questionnaire which consists of both open and closed end questions. The
total sample consists of 200 customers (75, each of savings and current account
customers and 25 each of senior citizens and NRI accounts). The responses received
from respondents are tabulated and responses are expressed in percentage along each
dimension of aspect.

1.6 Limitations of the Research

The study is conducted on a sample and analysis of Agriculture Loans

provided by ICICI Bank Yavatmal. The survey is conducted in a particular
geographical location. So, the results may vary in other geographical locations.

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 CHAPTER NO. 2

CONCEPTUAL BACKGROUND

2.1 Review of Literature

Agricultural Loan is the sources for farmers and peoples to get loan for their
development purpose. It is very important to get Agricultural Loan from the various
banks which offered them loan products. The data will be gathering through
interaction and discussion with the customers as well as manager of the Bank. This
study provides an inside in to the high level of customers and also attention towards
them.

A study on agricultural loan helps to know the need of customer as well as their
utilization for the customer. While the studying the agricultural loan of the ICICI
Bank in Yavatmal. It is a great experience to know the banking so closely.

It is seen that the bank are focusing more and more over the providing agricultural
loan due to which bank getting business. By offering such of facility the bank are the
need of the consumer. A study of agricultural loan with reference to ICICI Bank in
Yavatmal.

2.2 Concepts and Definitions

Consumers all over the world have become more quality conscious; hence there has
been an increased customer demand for higher quality service. Service operations worldwide
are affected by this new wave of quality awareness and emphasis. Therefore service-based
companies like the banks are compelled to provide excellent services to their customers in
order to have sustainable competitive advantage, especially in the current trend. Customer
satisfaction and retention has become a matter of concern in the banking industry and service
quality has been identified empirically as the driver of them. But there are discrepancies
between what the banks think is quality service and what the customers expect from the
banks.

Page 13
 Banking industry is highly service-oriented. The banking industry like many other
financial service industries facing a rapidly changing market, new technologies, economic
uncertainties, severe competition and more demanding customers. These rapid
transformations of services in the banking system have leads to the development of a highly
competitive and complex market. These developments are compelling the banks to refine
their service on a continuous basis in order to cope with the present conditions. This has led
the banks to improve the existing services and creation of new services. Widespread use of
technology enhanced the customer expectations, specifically on the aspects of speed and
quality of service delivery. So, the banks are looking for new ways not only to attract but also
to retain the customers and gain competitive advantage over their competitors. Thus, the
customers have become the focal point either to develop or maintain stability in the business.

Banking is a customer-oriented services industry; therefore, the customer is the

centre and customer satisfaction is the differentiating factor. Customer satisfaction, a
business term, is a measure of how products and services supplied by a company to meet or
exceed the customer expectations. The quality of services rendered by a bank has a
significant impact on the mentality of the customers. The relationship between a bank and its
customer is not a one-time or temporary relationship, but a relatively permanent and
continuing one. Customers expect the banks to be customer centric in all their dealings with
the customers. A prompt and efficient customer service is very important for the success of
the banking industry. Private banks seem to have satisfied its customers with good services
and they have been successful in retaining its customers by providing better facilities than
Public Sector Banks. But still Private Banks need to go a long way to become customer’s
first preference. So the study on customer satisfaction towards ICICI bank has been carried
out with the specific objectives.

ICICI Bank is an Indian multinational banking and financial services company

headquartered in Mumbai. ICICI Bank was established by the Industrial Credit and
Investment Corporation of India (ICICI), an Indian financial institution, as a wholly owned
subsidiary in 1994. The parent company was formed in 1955 as a joint-venture of the World
Bank, India's public-sector banks and public-sector insurance companies to provide project
financing to Indian industry. The parent company was later merged with ICICI Bank. As of
2021 it is the second largest bank in India in terms of assets and market capitalization. ICICI
bank is the India’s largest private sector bank with total assets of Rs5,946.42 billion at 31st
March 2021 and profit after tax Rs.98.10 billion for the year ended 31st March 2021. It offers
a wide range of banking products and financial services for corporate and retail customers
through a variety of delivery channels and specialized subsidiaries in the areas of investment

Page 14
banking, life, non-life insurance, venture capital and asset management. The Bank has a
network of 3,850 branches and 12,091 ATMs in India, and has a presence in 19 countries as
of December, 2021. ICICI Bank is one of the Big Four banks of India, along with State Bank
of India, Punjab National Bank and Bank of Baroda.

Page 15
 CHAPTER NO. 3

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

Details of each agricultural loam products are explained in the table format as under:

 Crop Loan

Feature Details (Crop Loan)

Nature of Loan Short Term Loan

Eligibility Entities Farmers/Group of Farmers

Eligibility Criteria  No dues with any other bank/Institutions.

 Should have been cultivating land for at least 2
years.

Purpose To meet cultivation expenses

Loan Limit Min. amount Rs.10000 & max. Amount Rs.15 lakhs
Tenure Interest calculations Loan amount is decided
based on the cropping pattern, ancillary and
contingencies need of the farmers for the full year.

Tenure 12 months

Interest calculations As per the guidelines on direct agricultural advances

issued by RBI from time to time.

Security  Hypothecation of crop.

 In case of investment credit, charge on assets
created out of loan.

Margin The scale of finance as determined by the District Level

Technical Committee.

Table No. 1: Crop Loan Product Details

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  Farm Equipment Loan

Feature Details

Nature of Loan Term Loan

Eligibility Entities Individual Farmers

Eligibility Criteria  No over dues with any bank/institution.

 Farmers should own minimum of 2 acres irrigated
land
 Pumps should have been approved by Bureau of
Indian Standards BSI
 Farmers should obtain s feasibility certificate
from Electricity Boar indicating the probable date
of energization, where applicable.

Purpose To install new irrigation system to purchase farm

machinery

Loan Limit Min. Rs.30000

Max. Rs.30 lakhs

Tenure 5-9 years

Interest calculations Linked to BPLR

Security Hypothecation of machinery

Margin 15% nil margin for loan up to Rs.50000

Others No penal interest to be charged for loan up to Rs.25000

Table No. 2: Farm Equipment Loan Product Details

Page 17
  Purchase of Land For Agriculture Purpose

Feature Details

Nature of Loan Term Loan

Eligibility Entities Small and the marginal farmers, Tenant farmers, share
croppers.

Eligibility Criteria Small and marginal frames

Purpose To finance the farmers to purchase, develop and cultivate

agricultural lands.

Loan Amount It will depend on the area of the land to be purchased and
its valuation and development cost.

Tenure 7 to 12 years with maximum moratorium of 24 months.

Interest 1. Simpler yearly up to end of March every year or close

of loan whichever is earlier.

Security The land purchase out of the bank finance and mortgage
in favour of the bank will form the security.

Margin Up to Rs.50000-No margin

Over Rs.50000-10-25%

Table No. 3: PLAP Product Details

Page 18
  Dairy Loans

Feature Details

Nature of Loan Term Loan

Eligibility Entities Individual and group of Farmers

Eligibility Criteria  The eligibility criteria should have arrangements

enough to house the existing animals.
 Should cultivating green fodder and should have
definite arrangements for its supply.
 Drinking water should be available in the area.

Purpose Dairy loans are sanction for:

 Purchase of high yielding milk animals.

 Construction of cattle shed.
 Purchase of dairy equipment.

Loan Limit Min. Rs.20000 & Max. Rs.10 lakhs

Interest As per RBI guidelines

calculations

Security  Hypothecation of milk animals, cattle shed equipment.

 Mortgage of landed properties.

Margin  Up to Rs.50,000 : Nil

 Rs.50000-1,00,000 : 10%
 Rs.1,00,000-2,00,000 : 15%
 Above 2,00,000 : 25%

Others Borrower shall bank exclusively with Yavatmal Urban

Cooperative Bank

Table No 4: Dairy loan product details

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  Financing For Poultry Farming

Feature Details

Nature of Loan Term Loan

Eligibility Entities Farmers (small marginal other) and Individual Institution

Target Segment As above

Eligibility Conditions Project should be technical feasible and Conditions

economically viable

Purpose Poultry farming

Tenure 5 to 7 years

Gestation Period 6 months

Repayment Schedule Quarterly/Half yearly (based on income generation from

the activity)

Interest Applications Quarterly/Half yearly (Based on repayment period)

Security Prime- Hypothecation of assets created out of bank loan

including animals.

Collateral- Mortgage of land and building

Margin 15%-25% (As per applicable norms of RBI)

Table No. 5 FPF Product Details

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  Kisan Credit Card Scheme

Feature Details

Purpose 1. To meet the short term credit requirement for

cultivation of crops.
2. Post-harvest expenses
3. Consumption requirement of farmer household
4. Working capital for maintenance of farm assets
and activities allied to agriculture, like dairy
animals, inland fishery, etc.

Eligibility 1. All farmers/Individuals /Joint Borrowers who are

owner cultivators, Tenants farmers.
2. The party should not be a defaulter to any of the
Financial Institutions.
3. Not be issued to minors and defaulters.

Margin Upton Rs.1 lakhs- No Margin

Above Rs.1 lakhs-

a) Crop cultivation/Maintenance as per SDF

b) Margin of 15% nil & 25% of the projected
expenditure

Security 1. Up to Rs.1,50,000- Hypothecation of crop/assets

Security created out of our finance
2. Above Rs.1,50,000- Mortgage of landed
properties

Repayment Method The term loan component will be normally repayable

Repayment Period within a period of 5 years in half
yearly or yearly instalments.

Table No. 6 Kisan Credit Card Scheme Derails

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3.1 Data Analysis

3.1.1 Assets of ICICI bank from 2017-18 to 2021-22

Assets Rup
ees
in
Cr
201 Perce 201 Per 2019 Perce 202 Perce 202 Pe
7-18 ntage 8-19 cent -20 ntage 0-21 ntage 1-22 rce
ge age nta
ge
Cash 5.4 293 7.3 1753 4.6 275 7.6 209 5.1
& 77.5 6.33 14.2 07
Balanc 187 9
es with 06.9
RBI
Balanc 5.3 866 2.2 1243 3.3 113 3.1 131 3.2
e with 3.6 0.23 59.4 83.1
Banks, 184
Money 14.5
at Call
Advanc 195 56.8 225 56.4 2183 57.6 181 49.9 216 53.
es 866 616 10.8 205. 366 3
5 6
Invest 912 26.5 111 27.9 1030 27.2 120 33.3 134 33.
ments 57.8 454 58.3 892. 686 2
1 8
Gross 629 1.8 703 1.8 7443 2.0 711 2.0 910 2.2
Block 8.56 6 .71 4.12 7.47
Accum 237 0.7 292 0.7 3642 1.0 390 1.1 436 1.1
ulated 5.14 7.11 .09 1.43 3.21
Depreci
ation
Net 392 1.1 410 1.0 3801 1.0 321 0.9 474 1.2
Block 3.42 8.89 .62 2.69 4.26
Other 164 4.8 205 5.1 2416 6.4 192 5.3 163 4.0
Assets 89 74.6 3.62 14.9 47.5
3
Total 344 100 399 100 3793 100 363 100 406 10
Assets 658 795 00.9 399. 234 0
6 7

Table No. 1: Assets of ICICI bank from 2017-18 to 2021-22

Page 22
Table 1 exemplify the assets of components of the ICICI bank for the last five years,
with regards to cash and balance with RBI 18706.9 crores which 5.4 percent of the
total assets of 2017-18, which is increased to 20,907 crores with the slight decline in
the proportion of total assets with 5.1 percent of the total assets, whereas the overall
increase of the amount is 11.8 percent, Balance with banks, Money at call was
18,414.5 crores in 2006 with the percent of 5.3 percent of the total assets, it has
diminished to 13,183.1 crores in 2018-19 with the 28.4 percent of decrease over the
period of time, with regard to the advances of the bank in 2017-18 the amount was
1,95,866 crores which constitutes 56.8 percent of the total assets which has increased
to 2,16,366 crores which constitutes around 53.3 percent of the total assets for the
year 2010-11 with the increase of 10.5 percent of the increase over the years, with
respect to investments the amount was 91,257.8 crores constitutes 26.5 percent of the
total assets on 2017-18, which is 1,34,686 crores in 2018-19 which constitutes 33.2
percent of the overall assets of that respective year with the increase of 47.6 percent
over the years, The gross block for the year 2006-07 was 6298.56 crores which
constitutes around 1.8 percent of the total assets, which is 9,107 crores in 2018-19
which constitutes 2.2 percent of the overall assets of that respective year with the
increase of 44.6 percent over the years, The accumulated depreciation for the year
2017-18 was 2375.14 crores constitutes 0.7 percent of the total assets which is
4,363.21 crores in 2018-19 which constitutes 1.1percent of the overall assets of that
respective year with the increase of 83.7 percent over the years, other assets of the
year 2006-07 was 16,489 crores constitutes around 4.8 percent of the total assets
which is 16,347.5 crores in 2018-19 which constitutes 4 percent of the overall assets
of that respective year with the decrease of 0.89 percent over the years, Thus the
assets of the ICICI bank shows positive development over the period of time and
there has not been very negative fluctuations have taken place during the last five
years, it clearly indicates the financial stability of the bank.

Page 23
3.1.2 Liabilities of the ICICI bank from 2017-18 to 2021-22

200 Perc 2007 Perc 2008 Perc 200 Perc 201 Perc
6- entag -08 entag -09 entag 9-10 entag 0-11 entag
07 e e e e e
Share 124 0.5 1462 0.8 1113 0.9 111 1.2 115 1.6
Capita 9.3 .68 .29 4.89 1.82
l 4
Reser 2.3 4535 4.4 4841 4.8 505 5.1 539 4.8
ves & 234 7.53 9.73 03.4 38.8
Surpl 13. 8 2
us 9
Share 2.8 4682 4.6 4953 4.9 516 5.2 550 4.9
holder 246 0.21 3.02 18.3 90.6
s’ 63. 7 4
Funds 3
Deposi 230 25.8 2444 23.2 2183 21.7 202 20.4 225 20.2
ts 510 31.0 47.8 016. 602.
5 2 6 1
Total 281 31.5 3100 30.3 2856 27.6 296 28.8 335 28.5
Debt 766 79.4 71.5 280. 156.
8 1 2 4
Borro 512 5.7 6564 6.5 9315 9.2 942 9.5 109 9.8
wings 56 8.43 5.45 63.5 554.
7 3
Loan 281 31.5 3100 30.3 3115 30.9 296 29.9 335 30.0
Funds 766 79.4 03.2 280. 156.
8 8 2 4
Total 894 100.0 1023 100.0 1007 100.0 992 100.0 111 100.0
Liabili 625 878. 744. 077. 565
ties 9 1 3 0

Table No. 2: Liabilities of the ICICI bank from 2017-18 to 2021-22

Table 2 exemplify the liability components of the ICICI bank for the last five years,
with regards to share capital 1249.3 crores which 5.5 percent of the total liability of
2017-18, which is increased to 1151.2 crores with the proportion of total liability
with 1.6 percent of the total liability ,whereas the overall decrease of the amount is
7.8 percent, Reserves and surplus was 23413.9crores in 2017 with the percent of 2.3
percent of the total assets, it has diminished to 53938.82crores in 2018-19 with the

Page 24
proportion of 4.8 percent with respect to the liability of the respective year, with the
increase of 130.4 percent over the period of time, with regards to the shareholders
fund of the bank in 2006-07 the amount was 24663.3crores which constitutes2.8
percent of the total liability which has increased to 55090.64 crores which
constitutes around 4.9 percent of the total liability for the year 2018-19 with the
increase of 123.4 percent of the increase over the years, with respect to the deposits
of the amount was 230510 crores constitutes 25.8 percent of the total liability on
2018-18, which is 225602.1 crores in 2018-19 which constitutes 20.2 percent of the
overall liability of that respective year with the decrease of 2.1 percent over the
years, The total debt for the year 2017-18 was 281766 crores which constitutes
around 31.5 percent of the total liability , which is 335156.4crores in 2018-19 which
constitutes 18.9 percent of the overall liability of that respective year with the
increase of 18.9 percent over the years, The borrowings for the year 2017-18 was
51256crores constitutes 5.7 percent of the total assets which is 109554.3crores in
2020-21 which constitutes 9.8 percent of the overall assets of that respective year
with the increase of 113.7 percent over the years, Loan funds of the year 2017-18
was 281766 crores constitutes around 31.5 percent of the total assets which is
335156.4 crores in 2020-21 which constitutes 30 percent of the overall liability of
that respective year with the increase of 18.9 percent over the years, Thus the
liability of the ICICI bank has shown positive development over the period of time
and there has been very unstainable reductions in total debt, and the loan funds
which implies that the financial performance is more positive in the same in the
increase in the shareholders fund is the positive sign even though it is increase
liability of the bank. negative fluctuations have not taken place during the last five
years, it clearly indicates the financial stability of the bank.

The parameters of service quality such as banking habits, speed and efficiency of
transactions, behavioural aspects of employees. customer amenities, credit related
services, technical aspects, service charges and pricing were considered as major
items of observation.

In order to have an objective and scientific assessment of customer satisfaction, the

customer Satisfaction at the various dimension comprehensively analysed from the
data collected.

Page 25
3.1.3 Age-wise classification

Gender Nos Percentage

Male 241 68.9

Female 109 31.1

Total 350 100

Page 26
3.2 Interpretation

1. Are you aware of the different loan facilities provided by ICICI bank?

Particula Percentage
r
Yes 86%
No 14%

Table No. 7

Percentage

14%

Yes
No

86%

Pie Chart No. 2

Data Interpretation: -

From the above chart we can say that

 86% of the respondent agreed that they are aware of the different loan
facilities provided by the bank.
 While only 14% are not aware of the loan schemes provided by the bank.

Page 27
2. Are you availing any kind of the facilities provided by the bank?

Availing any loan facilities provided by bank Percentage

Yes 71%
No 29%

Table No. 8

Percentage

29%
Yes
No

71%

Pie Chart No. 3

Data Interpretation: -
From the above chart we can say that
 71% of the total respondents were availing some loan facility from bank.
 29% of the respondents were not availing any kind of loan facility from bank

Page 28
3. Which type of loan facility you have taken?

Type of loan Percentage

Direct agriculture loan 74%
Indirect agriculture loan 11%
Loan for allied 15%
activities

Table No. 9

Percentage

0.15,
45
Direct agriculture loan
Indirect agriculture loan

55

Pie Chart No. 4

Data Interpretation: -
From the above chart we can say that
 74% of the customers have taken loan for direct agriculture.
 15% of the customers have taken loan for indirect agriculture.
 11% of the customers have taken loan for allied activities.

Page 29
4. What is the amount of loan you have taken?

Amount of loan taken Percentage

Below 50,000 54%
50,000 to 1,00,000 23%
1,00,000 to 5,00,000 16%
5,00,000 or above 7%

Table No. 10

Percentage

0.07
0.16

55% Below 50,000

45 50,000 to 1,00,000

5,00,000 or above

Pie Chart No. 5

Data Interpretation: -
From the above chart we can say that
 54% of the customers have taken loan below 50,000

Page 30
  23% of the customers have taken loan 50,000 to 1,00,000
 16% of the customers have taken loan 1, 00,000 to 5, 00,000.
 7% of the customers have taken loan 1, 00,000 to 5, 00,000.

5. How long you have been banking with ICICI Bank?

Period Percentage
Less than 1 year 5%
1 to 5 year 30%
5 to 10 years 45%
Not at all 20%

Table No. 11

Percentage

30
5%
0.2

Less than 1 year

1 to 5 year

5 to 10 years

Not at all

0.45

Pie Chart No. 6

Data Interpretation: -
From the above chart we can say that

Page 31
  5% of the customers have been banking with urban bank for less than 1 year
 30% of the customers have been banking with urban bank for 1 to 5 years.
 45% of the customers have been banking with urban bank for 5 to 10 years
 20% of the customers have been banking with urban bank not at all.

6. Why did you choose ICICI Bank for taking Agriculture Loan?

Reason to choose urban bank for taking loan Percentage

Proximity to farm 33%
Good service 54%
Interest rates 9%
Any other reason 4%

Table No. 12

Percentage

0.09
0.04
33%
Proximity to farm

Good service

Interest rates
54%
Any other reason

Pie Chart No. 7

Data Interpretation: -

Page 32
From the above chart we can say that
 54% of the customers have chosen urban bank because of good service.
 33% of the customers have chosen urban bank because of proximity to farm.
 9% of the customers have chosen urban bank because Interest rates
 4% of the customers have chosen urban bank because other reasons

7. How do you rate the overall attitude of bank officials/staffs towards you while
making transaction?

Attitude of bank officials/staff Percentage

Excellent 22%
Good 57%
Average 14%
Poor 7%

Table No. 13

Percentage

7%
22%
14%
Excellent
Good
Average
Poor

57%

Pie Chart No. 7

Page 33
Data Interpretation: -
From the above chart we can say that
 57% of the customers feel that attitude of bank officials was good.
 22% of the customers feel that attitude of bank officials was excellent.
 14% of the customers feel that attitude of bank officials was average.
 7% of the customers feel that attitude of bank officials was poor.

8. Are you satisfied with the rate of interest?

Satisfied with the rate of Percentage

interest
Yes 53%
No 47%

Table No. 14

Percentage

Yes
47%
53% No

Pie Chart No. 9

Page 34
Data Interpretation: -
From the above chart we can say that
 53% of the customers are satisfied with the rate of interest.
 47% of customers feel that interest rates are high.

9. Period of receiving loan from the date of application?

Period of receiving loan No. of respondents

1-10 days 19%
11-30 days 47%
1 month-2 months 21%
More than 2 months 13%

Table No. 15

Page 35
 Percentage

13% 19%
1-10 days
11-30 days
21%
1 month-2 months
More than 2 months

47%

Pie Chart No. 10

Data Interpretation: -
From the above chart we can say that
 47% of the customers received loan in the period of 11-30 days from the date
of the application.
 21% of the customers received loan in the period of 1- 2 months.
 19% of the customers received loan in the period of 1-10 days
 21% of the customers received loan in the period of more than 2 months.

10. How do you rate the repayment period provided by the bank?

Satisfaction rate Percentage

Highly satisfactory 24%
Satisfactory 55%
Dissatisfactory 11%
Highly dissatisfactory 10%

Table No. 16

Page 36
 Percentage

10%
24%
11% Highly satisfactory
Satisfactory
Dissatisfactory
Highly dissatisfactory

55%

Pie Chart No. 11

Data Interpretation: -
From the above chart we can say that
 11% of the customers are not satisfied with the repayment period provided by
bank.
 55% of the customers are satisfied with repayment period.
 24% of the customers are highly satisfied.
 10% of the customers are highly dissatisfied.

11. How do you rate overall service quality of ICICI bank?

Service quality No. of respondents

Very good 25%
Good 43%
Average 14%
Poor 18%

Table No. 17

Page 37
 Percentage

18%
25%
Very good
Good
14% Average
Poor

43%

Pie Chart No. 12

Data Interpretation: -
From the above chart we can say that
 43% of the customers fell the service quality was good.
 25% of the customers fell the service quality was very good.
 43% of the customers fell the service quality was average.
 43% of the customers fell the service quality was poor.

12. Do you find any bank in your area providing better services thatn ICICI bank?

Better services of No. of respondents

bank
Yes 37%
No 63%

Table No. 18

Page 38
 Percentage

37%
Yes
No
63%

Pie Chart No. 13

Data Interpretation: -
From the above chart we can say that
 37% of the customers fell that ICICI Bank is less service provider bank.
 63% of the customers fell that some other bank does not provides better
services than Yavatmal Urban bank.

13. Would you like to switch over to any other bank?

Switch over other bank Percentage

Yes 25%
No 75%

Table No. 19

Page 39
 Percentage

25%

Yes
No

75%

Pie Chart No. 14

Data Interpretation: -
From the above chart we can say that
 75% of the customers don’t want to switch to any other bank.
 While 25% of the customers would like to switch to other banks.

14. Is there is any eligibility criteria for offering agricultural loan?

Eligibility for Percentage

loan
Yes 62%
No 28%

Table No. 20

Page 40
 Percentage

28%
Yes
No

62%

Pie Chart No. 15

Data Interpretation: -
From the above chart we can say that
 62% of customers feel that there is a eligibility criteria.
 While 28% of the customers do not feel that there is any eligibility criteria.

15. Is an agricultural loan to farmers is most sound financial option?

Agricultural loan sounds financial option to Percentage

farmers
Sound 90%
Does not sound 10%

Page 41
 Table No. 21

Percentage

10%

Sound
Does not sound

90%

Pie Chart No. 16

Data Interpretation: -
From the above chart we can say that
 90% of farmers believe that agricultural loan is most sound financial option.
 While 10% of farmers believe that agricultural loan is unsound financial
option to them.

16. Whether landless farmers, tenants can avail agricultural credit?

Landless farmers, tenants can avail agriculture Percentage

credit

Page 42
 Yes 71%
No 29%

Table No. 22

Percentage

29%
Yes
No

71%

Pie Chart No. 17

Data Interpretation: -
From the above chart we can say that
 71% of the customers are avail of agriculture credit provided by bank.
 While 29% of customers are not availing of the agriculture credit provided by
bank.

17. What type of agriculture loan provided by bank to farmers?

Page 43
 Type of agriculture Percentage
credit
Short term 54%
Medium term 30%
Long term 16%

Table 23

Percentage

16%

Short term
Medium term
54% Long term
30%

Pie Chart No. 18

Data Interpretation: -

From the above data it is clear that

 54% customers take short term loan.

 30% customers take medium term loan.
 16% customers take Long term loan.

Page 44
18. Is getting agriculture loan from the bank is a critical process

Getting agriculture loan is a critical process No. of customers

Yes 11%
No 89%

Table No. 23

Percentage

11%

Yes
No

89%

Pie Chart No. 18

Data Interpretation: -
From the above chart we can say that
 89% of customers feel that getting agriculture loan is not a critical process.
 But 11% of customers feel that it is a critical process.

Page 45
19. From the following which documents are essential for taking an agriculture loan?
1. Voter Id Card
2. Aadhar Card
3. Tax Receipt
4. Electricity Bill

Particular No. of respondents

1&2 10%
2&3 21%
1&4 12%
All of the above 57%

Table No. 25

Particular

10%

1&2
21% 2&3
1&4
57% All of the above

12%

Pie Chart No. 20

Data Interpretation: -
From the above chart we can say that
 The 10% respondents are says document 1 & 2 are essential.
 The 21% respondents are says document 2 & 3 are essential.
 The 10% respondents are says document 1 & 4 are essential.

Page 46
 The 10% respondents are says all of the above.

Findings

 4% of the respondents are not aware of the different loan facilities provided

by the bank.

 71% of the respondents are availing some loan facility from the bank.

 From the three main loan schemes provided by the bank, maximum customers

have availed direct agricultural loan.

 Maximum customers (54%) have taken loan below Rs. 50000

 More than half of the customers have availed loan because of good service

provided by bank.

 About two third of customers are satisfied with the attitude of bank

official/staff towards them while making transactions.

 About half of the customers are satisfied with the interest rates on loan.

 About 1/3rd of customers take more than a month to receive loan.

 About one third of customers feel that overall service quality of Yavatmal

Urban Cooperative bank is average/below average.

 More than half customer feels that other bank provides better service than

Yavatmal Urban Cooperative Bank.

 90% of farmers believe that agricultural loan is most sound financial option.

 62% of customers feel that there are any eligible criteria for loan.

Page 47
 Hypothesis Testing

Hypothesis No. 1: Customers are aware about the different loan facilities provided
by the ICICI Bank.

1. Awareness of loan facilities provided by ICICI Bank

Sr. Particular Percentage

No.
1 Aware 86%
2 Not aware 14%

Percentage

14%

Aware
Not aware

86%

Data Interpretation: - During the study it is found that 86% of the respondents are
aware about the different loan facilities provided by the ICICI Bank. Hence in this
case alternate hypothesis is providing.

Page 48
Hypothesis No. 2: Customers are satisfied with the procedure for agriculture loan
provided by ICICI Bank.
2. Are you satisfied with the interest rates?

Satisfied with the interest rates Percentage

Yes 75%
No 25%

Percentage

25%

Yes
No

75%

Data Interpretation: - During study it is found that 75% of customers are satisfied
with procedure for agriculture loan provided by ICICI Bank. Hence in this case
alternate Hypothesis is prove.

Page 49
 CHAPTER NO. 4

FINDINGS, SUGGESTIONS AND CONCLUSION

4.1 Major Findings

 4% of the respondents are not aware of the different loan facilities provided

by the bank.

 71% of the respondents are availing some loan facility from the bank.

 From the three main loan schemes provided by the bank, maximum customers

have availed direct agricultural loan.

 Maximum customers (54%) have taken loan below Rs. 50000

 More than half of the customers have availed loan because of good service

provided by bank.

 About two third of customers are satisfied with the attitude of bank

official/staff towards them while making transactions.

 About half of the customers are satisfied with the interest rates on loan.

 About 1/3rd of customers take more than a month to receive loan.

 About one third of customers feel that overall service quality of Yavatmal

Urban Cooperative bank is average/below average.

 More than half customer feels that other bank provides better service than

Yavatmal Urban Cooperative Bank.

 90% of farmers believe that agricultural loan is most sound financial option.

 62% of customers feel that there are any eligible criteria for loan.

Page 50
4.2 Conclusion of the Findings

 The customers are aware of the process of the Agricultural loan and they are
taking it for their purpose.

 The Yavatmal urban cooperative bank has launched several good products
catering to rural and agri community for their customers.

 The bank is making agri sector very important than any other sector

 The bank made the lending procedure very simple for the customers.

 The bank has trained staffs which are making enough care of the customers
Problem regarding agricultural loan.

 The customers are satisfied with the policies and procedures of lending loan
with Yavatmal Urban Cooperative Bank.

Page 51
4.3 Suggestions and Recommendations

 Since 6% of the respondents are aware of different loan facilities provided by

bank, in order to create awareness among the rest, the bank should go for
more promotional activities regarding different services of the bank.

 Formalities required for the application and issuance of loan should be

reduced, so that more people can avail loan facilities.

 Above one third of the customers have annual income ranging from50000 to
100000 in order to target some other group as well, bank should prescribe
reasonable interest rates so as to increase the sales and hence profit.

 The staff should be well trained enough to provide maximum information

regarding the loan facilities so the employees of bank take very good care of
customers in all respect, because "Customers is the King"

 68% of the customers look more than a month to receive loan from the date of
application. In order to increase the satisfaction level of the customers, bank
should reduce this time period.

 Bank should improve its overall service quality to be more competitive.

Page 52
  The lending procedure for customers should be simplified.

ANNEXURE

QUESTIONNAIRE

Dear Sir/Madam,

As per of my MBA curriculum, I Monika B. Meshram, student of CMCS(College of

Management & Computer Science) Yavatmal, I am undertaking a study Project on
"A study of Agricultural Loan offered by Yavatmal Urban Cooperative Bank" for
which I need your views regarding banking Products and services in shapes of a
questionnaire designed by me. The data being collected are solely for academic
purpose. I request you to kindly extend your co-operation.

 Name
 Address
 Phone Number
 Annual Income
 How much land do you hold

1. Are you aware of the different loan facilities provided by ICICI?

a) Yes
b) No

2. Are you availing any kind of loan facilities provided by the bank?

a) Yes
b) No

3. If yes, which type of loan you have taken?

Page 53
 a) Direct Agriculture Loan
b) Indirect Agriculture Loan
c) Loan for Allied Activities

4. What is the amount of loan you have taken?

a) Below 50000
b) 50000 to 100000
c) 100000 to 500000
d) 500000 to above

5. How long you have been banking with Yavatmal ICICI

Bank?

a) Less than 1 year

b) I to 5 years
c) 5 to 10 years
d) Not at all

6. Why did you choose Yavatmal Urban Cooperative Bank for taking loan?

a) Proximity to farm
b) Good service
c) Interest rates
d) Any other reasons

7. How do you rate the Overall attitude of banks official towards you while making
transactions?

a) Excellent
b) Good
c) Average
d) Poor

Page 54
8. Are you satisfied with the rate of interest?

a) Yes
b) No

9. Period of receiving loan from the date of application?

c) 1-10 days
d) 11-30 days
e) 1month 2 month
f) More than 2 months

10. How do you rate the repayment period provided by the bank?

a) Highly satisfactory
b) Satisfactory
c) Dissatisfactory
d) Highly dissatisfactory

11. How do you rate overall service quality of Yavatmal Urban Co- operative Bank?

a) Very Good
b) Good
c) Average
d) Poor

12. Do you find any other bank in your area providing better services than

ICICI?

a) Yes

Page 55
 b) No

13. Would you like to switch over to any other bank?

a) Yes
b) No

14. Is there is any eligibility criteria for offering agriculture loan?

a) Yes
b) No

15. Is an Agriculture loan to farmers is most sound financial option?

a) Sound
b) Unsound

16. Whether landless farmers, tenants can avail agriculture credit?

a) Yes
b) No

17. Which Type of agriculture loan provided by bank?

a) Short term loan

b) Medium term loan
c) Long term loan

18. Is getting Agriculture loan from the bank is a critical process?

a) Yes
b) No

19. From the following which documents are essential for taking an agriculture loan?

a) Voter ID
b) Ration card
c) Aadhar card

Page 56
 d) Land ownership proof receipt

Bibliography

1. Financial Institution and Markets, L.M. Bhole, McGraw Hill, 4th edition.

2. Commercial Banking, B. W. Gup & J.W. Kolari, Wiley, 3 edition.

3. Banking- Theory and Practice, Dr. P.K. Shrivastav, Himalaya, 8th edition

4. Commercial Banking, G.P. Kapoor, A.P.H., 1" edition

Websites

 www.yavatmalurbanbank.com
 www.urbanco-opbank.com
 www.google.com
 www.wikipedia.com

Page 57
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