A STUDY ON COMMERCIAL BANKS IN FINANCING

EMERGING ENTREPRENEURS WITH REFERENCE TO

CANARA BANK.

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS OF BACHELOR

OFCOMMERCE(HONOURS) DEGREE COURSE OF BENGALURU CITY UNIVERSITY

BY
Mr. MYLAPALLI GANESH KUMAR
(REG NO. M1812011)

UNDER THE GUIDANCE O.

Ms. HEMALATHA.V
Assistant Professor
Dept. of Commerce

JAIN COLLEGE

#15, Vasavi Temple Road, V.V. Puram

Bangalore- 560 004.

Department of Commerce

2020-21
 CERTIFICATE BY THE GUIDE

Certified that the dissertation titled “A STUDY ON COMMERCIAL BANKS

FINANCING EMERGING ENTREPRENEURS WITH REFERENCE TO
CANARA BANK”, is based on an original project study conducted by

MR. MYLAPALLI GANESH KUMAR, bearing register No: M1812011 under my

guidance. He has attended the required guidance sessions held. This project report has not
formed a basis for the award of any Degree/Diploma of any University or Institution

SIGNATURE OF THE GUIDE.

Ms. HEMALATHA.V
 DECLARATION

This is to certify that the project titled “A STUDY ON COMMERCIAL BANKS

FIANANCING EMERGING ENTREPRENEURS WITH REFERENCE TO
CANARA BANK”, is carried out independently by me under the guidance of Asst.Prof.
HEMALATHA.V and this work is an original one and has not been submitted earlier to
any other university or any other Institution for the fulfilment of the requirement of a
course of study.

BANGLORE Name: MYLAPALLI GANESH KUMAR

Date: Register number: M1812011

 ACKNOWLEDGEMENT

It is my great privilege to convey my sincere thanks to Dr. NAVEEN KUMAR C M

Principal Jain College Vasavi campus for his endeavour support for the project.

I extend my special thanks to Co-Ordinator’s, Dept of commerce Prof. PUSPHA.N &

Prof. SHAWAR SALEEM, for their valuable guidelines and support throughout the
project.

I extend my deep sense of gratitude to my respected guide Asst Prof. HEMALATHA.V

for her valuable guidance and support throughout the project.

I also like to thank my family for their assistance and encouragement and all my friends
who helped in completing the project successfully.
 LIST OF CONTENT

CHAPTER TOPIC PAGE

NUMBER

INTRODUCTION
1. PART – A 1-16
PART - B 17-24

2. RESEARCH DESIGN 25-29

3. COMPANY PROFILE 30-48

4. DATA ANALYSIS AND INTREPRETATION 49-84

5. SUMMARY OF FINDINGS AND 85-87

CONCLUSION

6. SUGGESTIONS 88

APPENDICIES AND ANNEXURES 89-93

BIBLIOGRAPHY 94
 LIST OF TABLES

TABLE TITLE OF THE TABLE PAGE

NUMBER NUMBER
4.1 Table showing the gender wise classification of 50
respondents

4.2 Table showing the age wise classification of respondents 52

4.3 Table showing the Existence of respondents in business 53

4.4 Table showing turnovers of respondents 55

4.5 Table showing number of respondents having canara 57

bank account

4.6 Table showing the respondents opinion on services 59

provided by canara bank

4.7 Table showing the Number of entrepreneurs took 61

business loans from canara bank

4.8 Table showing the Respondents’ reasons who haven’t 63

taken loans from canara bank

4.9 Table showing the Number of respondents who got 65

financed from other banks

4.10 Table showing the Number of Respondents suggesting 67

canara bank to new(or) upcoming entrepreneurs
4.11 Table showing Respondents’ opinion on services 69
rendered by banks

4.12 Table showing the Respondents rated canara bank 71

financing their business

4.13 Table showing the Respondents’ opinion on interest rate 73

of canara bank

4.14 Table showing the Respondent’s opinion on financing 75

from banks will increase safety and security for business

4.15 Table showing the Respondents opinion on rating credit 77

facility provided by bank

4.16 Table showing the Respondents’ opinion on Recent 79

innovation in banking reduces work and saves time

4.17 Table showing Respondents’ opinion on drawbacks in 81

getting financial support from banks

4.18 Table showing the Respondents’ opinion on canara bank 83

financing emerging entrepreneurs
 LIST OF GRAPHS

GRAPH TITLE OF THE GRAPH PAGE

NUMBER NUMBER

4.1 Graph showing the gender wise classification of 51

respondents

4.2 Graph showing the age wise classification of 52

respondents

4.3 Graph showing the Existence of respondents in 54

business

4.4 Graph showing Turnover of respondent’s 56

4.5 Graph showing the Number of respondents having 58

canara bank account

4.6 Graph showing the Respondents opinin on services 60

provided by canara bank

4.7 Graph showing Number of entrepreneurs took 62

business loans from canara bank

4.8 Graph showing Respondents’ reasons who haven’t 64

taken loans from canara bank

4.9 Graph showing the Number of respondents who got 66

financed from other banks
4.10 Graph showing the Number of Respondents 68
suggesting canara bank to new(or) upcoming
entrepreneurs
4.11 Graph showing Respondents’ opinion on services 70
rendered by banks

4.12 Graph showing Respondents rated canara bank 72

financing their business

4.13 Graph showing Respondents’ opinion on interest rate 74

of canara bank

4.14 Graph showing Respondent’s opinion on financing 76

from banks will increase safety and security for
business
4.15 Graph showing Respondents’ opinion on rating credit 78
facility provided by bank

4.16 Graph showing Respondents’ opinion on Recent 80

innovation in banking reduces work and saves time

4.17 Graph showing Respondents’ opinion on drawbacks in 82

getting financial support from banks

4.18 Graph showing Respondents’ opinion on canara bank 84

financing emerging entrepreneurs
 CHAPTER-1
INTRODUCTION
A STUDY ON COMMERCIAL BANKS IN FINANCING EMERGING ENTERPRENUERS WITH REFERNCE TO CANARA BANK

CHAPTER 1

INTRODUCTION

Part A

The aim is to provide an insight how commercial banks finance the emerging enterprises.
Before we explore into dissertation, it is necessary to understand what are commercial banks
and their functions, what is an enterprise, what is an emerging enterprise and some other
details that will be dealt in the course of action.

Commercial banks:

A commercial bank is a financial institution which performs the functions of accepting

deposits from the general public and giving loans for investment with the aim of earning
profit. In fact, commercial banks, as their name suggests, axe profit-seeking institutions, i.e.,
they do banking business to earn profit.

They generally finance trade and commerce with short-term loans. They charge high rate of
interest from the borrowers but pay much less rate of Interest to their depositors with the
result that the difference between the two rates of interest becomes the main source of profit
of the banks. Most of the Indian joint stock Banks are Commercial Banks such as Punjab
National Bank, Allahabad Bank, Canara Bank, Andhra Bank, Bank of Baroda, etc.

Functions:

(A) Primary function:

1. It accepts deposits:

A commercial bank accepts deposits in the form of current, savings and fixed deposits.
It collects the surplus balances of the Individuals, firms and finances the temporary
needs of commercial transactions. The first task is, therefore, the collection of the
savings of the public. The bank does this by accepting deposits from its customers.
Deposits are the lifeline of banks. There are three deposits Current account deposits,
Saving account deposits, Fixed deposits.

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2. It gives loans and advances:

The second major function of a commercial bank is to give loans and advances particularly
to businessmen and entrepreneurs and thereby earn interest. This is, in fact, the main source
of income of the bank. A bank keeps a certain portion of the deposits with itself as reserve
and gives (lends) the balance to the borrowers as loans and advances in the form of cash
credit, demand loans, short-run loans, overdraft.

3.Investment:

The banks invest their surplus funds in government securities and on other approved
securities.

(B)Secondary Function:

1.Discounting bills of exchange

2.Overdraft facility

3.Agency functions like transfer of funds, collection of funds, payment of various

items, purchase and sale of shares and securities, letter of references.

4.Performing general utility services like traveller’s cheques, locker facility,

underwriting securities issued by government, public or private bodies, purchase and sale of
foreign exchange (currency).

Types of commercial banks:

A) Scheduled commercial banks B) Non-scheduled commercial banks

1.Public sector banks

SBI and its subsidiaries

Other nationalised banks

2.Private sector banks

3.Foreign banks

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A) Scheduled commercial banks:

Scheduled banks are those banks which are included in Second Schedule of Reserve Bank of
India. A scheduled bank must have a paid-up capital and reserves of at least Rs 5 lakh. RBI
provides special facilities including credit to scheduled banks. Some of important scheduled
banks are State Bank of India and its subsidiary banks, nationalised banks, foreign banks, etc.

B) Non-scheduled banks:

The banks which are not included in Second Schedule of RBI are known as non-scheduled
banks. A non-scheduled bank has a paid-up capital and reserves of less than Rs 5 lakh.
Clearly, such banks are small banks and their field of operation is also limited.

Significance of Commercial Banks:

Commercial banks play such an important role in the economic development of a country that
modern industrial economy cannot exist without them. They constitute nerve centre of
production, trade and industry of a country. In the words of Wick-sell, “Bank is the heart and
central point of modern exchange economy.”

The following points highlight the significance of commercial banks:

(i) They promote savings and accelerate the rate of capital formation.

(ii) They are source of finance and credit for trade and industry.

(iii) They promote balanced regional development by opening branches in backward areas.

(iv) Bank credit enables entrepreneurs to innovate and invest which accelerates the process of
economic development.

(v) They help in promoting large-scale production and growth of priority sectors such as
agriculture, small-scale industry, retail trade and export.

(vi) They create credit in the sense that they are able to give more loans and advances than
the cash position of the depositor’s permits.

(vii)They help commerce and industry to expand their field of operation.

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(viii) Thus, they make optimum utilisation of resources possible.

CHALLENGES FACED BY COMMERCIAL BANKS IN RURAL AREAS

1. Losses in Rural Branches:

Most of the rural branches are running at a loss because of high overheads and prevalence of
the barter system in most parts of rural India.

2. Large Over-Dues:

The small branches of commercial banks are now faced with a new problem—a large amount
of overdue advances to farmers. The decision of the former National Front Government to
waive all loans to farmers up to the value of Rs. 10,000 crores have added to the plight of
such banks.

3. Non-Performing Assets:

The commercial banks at present do not have any machinery to ensure that their loans and
advances are, in fact, going into productive use in the larger public interest. Due to a high
proportion of non-performing assets or outstanding due to banks from borrowers they are
incurring huge losses. Most of them are also unable to maintain capital adequacy ratio.

4. Advance to Priority Sector:

As far as advances to the priority sectors are concerned, the progress has been slow. This is
partly attributable to the fact that the bank officials from top to bottom could not accept
nationalisation gracefully, viz., diversion of a certain portion of resources to the top priority
and hitherto neglected sectors. This is also attributable to the poor and unsatisfactory loan
recovery rates from the agricultural and small sectors.

5. Competition from Non-Banking Financial Institution:

As far as deposit mobilisation is concerned, commercial banks have been facing stiff
challenges from non-banking financial intermediaries such as mutual funds, housing finance
corporations, leasing and investment companies. All these institutions compete closely with

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commercial banks in attracting public deposits and offer higher rates of interest than are paid
by commercial banks.

6. Competition with Foreign Banks:

Foreign banks and the smaller private sector banks have registered higher increase in
deposits. One reason seems to be that non-nationalised banks offer betters customer service.
This creates the impression that a diversion of deposits from the nationalised banks to other
banks has probably taken place.

7. Gap between Promise and Performance:

One major weakness of the nationalised banking system in India is its failure to sustain the
desired credit pattern and fill in credit gaps in different sectors. Even though there has been a
reorientation of bank objectives, the bank staff has remained virtually static and the bank
procedures and practices have continued to remain old and outmoded.

The post-nationalisation period has seen a widening gap between promise and performance.
The main reason seems to be the failure of the bank staff to appreciate the new work
philosophy and new social objectives.

8. Bureaucratisation:

Another problem faced by the commercial banks is bureaucratisation of the banking system.
This is indeed the result of nationalisation. The smooth functioning of banks has been
hampered by red-tapism, long delays, lack of initiative and failure to take quick decisions.

9. Political Pressures:

The smooth working of nationalised banks has also been hampered by growing political
pressures from the Centre and the States. Nationalised banks often face lots of difficulties due
to various political pressures. Such pressures are created in the selection of personnel and
grant of loans to particular parties without considering their creditworthiness.

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Advantages and Disadvantages of commercial banks:

Advantages:

Commercial banks can help small business by making it easier to manage day-to-day financial
tasks. An established commercial account with a bank will make it easier to borrow money
when you grow your business. The Advantages of raising funds from a commercial bank are
as follows:

▪ Banks provide timely assistance to business by providing funds as and when needed
by it.
▪ Secrecy of business can be maintained as the information supplied to the bank by the
borrowers is kept confidential;
▪ Formalities such as the issue of prospectus and underwriting are not required for
raising loans from a bank. This, therefore, is an easier source of funds;
▪ Loan from a bank is a flexible source of finance as the loan amount can be increased
according to business needs and can be repaid in advance when funds are not
needed.
▪ Business management and handling become easier with the commercial bank taking
care of economic activities.
▪ Money borrowing for development of business becomes easier withholding of
account in the commercial bank.
▪ Better resolutions are provided for the business problems as there is a banking
administrative designated to work for your business development.
▪ Employee services are better looked after even after retirement.

Since commercial banks are larger than private banks, the perceptibly will have more locations
for customers to access their money. This is very helpful when customers travel and need to
access their accounts.

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Disadvantages:

Commercial bank accounts are often more expensive than traditional bank accounts. Banks
may charge fees for night deposits, for processing a certain number of checks and for the
payroll services. The major Disadvantages of commercial banks as a source of finance are as
follows:

▪ Funds are generally available for short periods and its extension or renewal is
uncertain and difficult;
▪ Banks make a detailed investigation of the company’s affairs, financial structure, etc.,
and may also ask for the security of assets and personal sureties. This makes the
procedure of obtaining funds slightly difficult;
▪ In some cases, difficult terms and conditions are imposed by banks, for the grant of
loan. For example, restrictions may be imposed on the sale of mortgaged goods,
thus making normal business working difficult.
▪A commercial bank account is costly than normal bank accounts. Every service
availed is chargeable like payroll services, checking or verification of any
information; night deposits, etc. have extra charges applicable.
▪ Some services may not be needed depending on the business you run but you would
be charged on the same as they are the part of the deal. Services offered by the
banks might differ, therefore, the comparison also differs.
▪ Bank choice impacts the business and transfers to other banks is time and money
taking. Having an account in commercial banks prior to the start of the business
impacts the growth.
▪ Commercial banks have their own advantages and disadvantages therefore, every
move has to be counted and taken consciously.

Some commercial banks won’t be helpful for taking out business loans. They would rather deal
with individual loans. Some commercial banks have severe guidelines for businesses when
they take out a loan.

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Role of commercial banks in financing emerging entrepreneurs

If you think your bank is just a place to open a checking account and take out the
occasional business loan, think again. Commercial banks can be helpful partners in a
variety of ways as you grow your small business.

Understanding the role of banks in business — especially with a small business — will
reveal more opportunities to move your company forward.

A. Checking and Operating Accounts

The most common benefit of a commercial bank for small business is that it’s a safe place
to keep your money. You can do this is in a simple checking account or an operating Credit
account. Talk to your bank about the difference between these two products.

B. Debit and Cards

Banks offer a variety of small-business debit and credit cards. Debit cards usually come
with your checking or operating account. Small-business credit cards are tied to your
personal credit, according to Credit Card Ideas.

The bank will pull your personal credit report and award your card, credit line and APR
based on that. You’re also personally on the hook for all charges, just like you are with a
personal credit card.

Small-business credit cards are convenient for keeping your business and personal spending
separate, provide different spending reports and offer different rewards.

C. Lines of Credit

If you think you might need credit but don’t want to pay interest on a large loan, you can
choose to open a line of credit with a bank. This way, you only pay for the funds you
actually use. In addition to having the funds available, a line of credit is valuable because
you can show vendors and suppliers that you have the money to pay them.

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D. Commercial Small Business Loans

Banks offer loans for purchasing equipment, paying bills, buying a company vehicle or
buying real estate. Some loans may be secured, which means you put an asset up as
collateral.

E. Government Small Business Loans

The U.S. Small Business Administration has a variety of loan programs for small
businesses, especially ones owned or partially owned by women and minority groups. The
process begins with a commercial bank. If you are turned down for a loan at a commercial
bank, you then apply for an SBA (small-business loan). If the SBA awards you the loan,
it’s made through your commercial bank, with the SBA guaranteeing it.

Because banks are familiar with the SBA program, they can guide you through the process
and help you with the paperwork. In many cases, they can give you a good idea of whether
you will qualify or not, and what loans to pursue.

In addition to regular SBA loans, the U.S. government offered emergency loans to small
businesses at the beginning of the COVID-19 pandemic in 2020. This included the Pay
check Protection Program, which helped employers pay their employees while they were
closed. Business owners applied at their banks and received help in filling out the forms
from the bank, which received the funds from the federal government and disbursed them
to small businesses.

F. Banks Offer Advice

Your bank can offer you small-business advice in a number of areas, such as tax planning,
retirement accounts, insurance, payroll management, creating financial documents and
managing your cash flow, points out Inc. magazine. Banks can also help you understand
and set up digital payments, which is increasingly more important in helping you pay your
bills more efficiently and allowing customers to buy from you more conveniently,
according to Certified Public Accountant (CPA) Practice Advisor.

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HISTORY, GROWTH AND PROSPECTS BANKS OF COMMERCIAL

The Commercial Bank of India, also known as Exchange Bank was a bank which was
established in Bombay Presidency (now Mumbai), in 1845 of the British Raj period. The bank
failed in the crash of 1866, after successfully operating for 20 years. The bank had eight
branches, exclusive of the head office at Bombay,
viz: London, Calcutta, HongKong, Foochow (now Fuzhou), Shanghai, Hankow (now part
of Wuhan), Yokohama and Singapore, with an agency for the purchase of bullion at San
Francisco. Commercial Bank of India then was winded up as directed by the Master of the
Rolls, under the corresponding section of the Companies Act of England, where the company
was registered under the Indian law and was not registered in England, but was carrying on
business in England.

Post-Independence:

During 1938–46, bank branch offices trebled to 3,469 and deposits quadrupled to ₹962 crore.
Nevertheless, the partition of India in 1947 adversely impacted the economies
of Punjab and West Bengal, paralysing banking activities for months.
India's independence marked the end of a regime of the Laissez-faire for the Indian banking.
The Government of India initiated measures to play an active role in the economic life of the
nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged
a mixed economy. This resulted in greater involvement of the state in different segments of
the economy including banking and finance. The major steps to regulate banking included:

• The Reserve Bank of India, India's central banking authority, was established in
April 1935, but was nationalized on 1 January 1949 under the terms of the
Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).
• In 1949, the Banking Regulation Act was enacted, which empowered the Reserve
Bank of India (RBI) to regulate, control, and inspect the banks in India.
• the Banking Regulation Act also provided that no new bank or branch of an
existing bank could be opened without a license from the RBI, and no two banks
could have common directors.

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Nationalisation in 1969

Despite the provisions, control and regulations of the Reserve Bank of India, banks in India
except the State Bank of India (SBI), remain owned and operated by private persons. By the
1960s, the Indian banking industry had become an important tool to facilitate the
development of the Indian economy. At the same time, it had emerged as a large employer,
and a debate had ensued about the nationalization of the banking industry. Indira Gandhi, the
then Prime Minister of India, expressed the intention of the Government of India in the
annual conference of the All India Congress Meeting in a paper entitled Stray thoughts on
Bank Nationalization.

Thereafter, the Government of India issued the Banking Companies (Acquisition and
Transfer of Undertakings) Ordinance, 1969 and nationalized the 14 largest commercial banks
with effect from the midnight of 19 July 1969. These banks contained 85 percent of bank
deposits in the country. Within two weeks of the issue of the ordinance,
the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking)
Bill, and it received presidential approval on 9 August 1969.

The following banks were nationalized in 1969:

• Allahabad Bank (now Indian Bank)

• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Central Bank of India
• Canara Bank
• Dena Bank (now Bank of Baroda)
• Indian Bank
• Indian Overseas Bank
• Punjab National Bank
• Syndicate Bank (now Canara Bank)
• UCO Bank
• Union Bank of India
• United Bank of India (now Punjab National Bank)

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Nationalisation in 1980

A second round of nationalizations of six more commercial banks followed in 1980. The
stated reason for the nationalization was to give the government more control of credit
delivery. With the second round of nationalizations, the Government of India controlled
around 91% of the banking business of India.

The following banks were nationalized in 1980:

• Punjab and Sind Bank

• Vijaya Bank (Now Bank of Baroda)
• Oriental Bank of India (now Punjab National Bank)
• Corporation Bank (now Union Bank of India)
• Andhra Bank (now Union Bank of India)
• New Bank of India (now Punjab National Bank)

Later on, in the year 1993, the government merged New Bank of India with Punjab National
Bank. It was the only merger between nationalised banks and resulted in the reduction of the
number of nationalised banks from 20 to 19. Until the 1990s, the nationalized banks grew at a
pace of around 4%, closer to the average growth rate of the Indian economy.

PSB Amalgamations in the 2000's and 2010's

✓ SBI (State bank of India):

SBI merged with its associate bank State Bank of Saurashtra in 2008 and State Bank of
Indore in 2009.Following a merger process, the merger of the 5 remaining associate banks,
(viz. State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of
Mysore, State Bank of Patiala, State Bank of Travancore); and the Bhartiya) with the SBI
was given an in-principle approval by the Union Cabinet on 15 June 2016. This came a
month after the SBI board had, on 17 May 2016, cleared a proposal to merge its five
associate banks and Bhartiya Mahaila Bank with itself.

On 15 February 2017, the Union Cabinet approved the merger of five associate banks with
SBI. An analyst foresaw an initial negative impact as a result of different pension liability
provisions and accounting policies for bad loans. The merger went into effect from 1 April
2017.

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✓ BOB (Bank of Baroda):

On 17 September 2018, the Government of India proposed the amalgamation of Dena

Bank and Vijaya Bank with erstwhile Bank of Baroda, pending (namesake) approval from the
boards of the three banks. The Union Cabinet and the boards of the banks approved the
merger on 2 January 2019. Under the terms of the amalgamation, Dena Bank and Vijaya
Bank shareholders received 110 and 402 equity shares of the Bank of Baroda, respectively, of
face value ₹2 for every 1,000 shares they held. The amalgamation became effective from 1
April 2019.

✓ PNB (Punjab national bank):

On 30 August 2019, Finance Minister announced that the Oriental Bank of

Commerce and United Bank of India would be merged with Punjab National Bank, making
PNB the second largest PSB after SBI with assets of ₹17.95 lakh crore (US$250 billion) and
11,437 branches. MD and CEO of UBI, Ashok Kumar Pradhan, stated that the merged entity
would begin functioning from 1 April 2020. The Union Cabinet approved the merger on 4
March 2020. PNB announced that its board had approved the merger ratios the next day.
Shareholders of OBC and UBI will receive 1,150 shares and 121 shares of Punjab National
Bank, respectively, for every 1,000 shares they hold. The merge came into effect since 1
April 2020. Post-merger, Punjab National Bank has become the second largest public sector
bank in India

✓ Canara Bank:

On 30 August 2019, Finance Minister announced that Syndicate Bank would be merged
with Canara Bank. The proposal would create the fourth largest PSB trailing SBI, PNB, Bob
with assets of ₹15.20 lakh crore (US$210 billion) and 10,324 branches. The Board of
Directors of Canara Bank approved the merger on 13 September 2019. The Union Cabinet
approved the merger on 4 March 2020. Canara Bank assumed control over Syndicate Bank
on 1 April 2020 with Syndicate Bank shareholders receiving 158 equity shares in the former
for every 1,000 shares they hold.

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✓ Union Bank:

On 30 August 2019, Finance Minister announced that Andhra Bank and Corporation
Bank would be merged into Union Bank of India. The proposal would make Union Bank of
India the fifth largest PSB with assets of ₹14.59 lakh crore (US$200 billion) and 9,609
branches. The Board of Directors of Andhra Bank approved the merger on 13
September. The Union Cabinet approved the merger on 4 March, and it was completed on 1
April 2020.

✓ Indian Bank:

On 30 August 2019, Finance Minister announced that Allahabad Bank would be merged
with Indian Bank. The proposal would create the seventh largest PSB in the country with
assets of ₹8.08 lakh crore (US$110 billion). The Union Cabinet approved the merger on 4
March 2020. Indian Bank assumed control of Allahabad Bank on 1 April 2020.

Recusal of Private Banks 2020's

➢ Yes bank:

In April 2020, RBI enlisted SBI to rescue the troubled lender Yes Bank, in from of
investment with assistance from other lenders viz., ICICI Bank, HDFC Bank and Kotak
Mahindra Bank. SBI went on to own 48% share capital of Yes bank, which it later diluted to
30% in an FPO in following months.

➢ Lakshmi Vilas Bank:

In November 2020, RBI asked DBS Bank India Limited (DBIL) to take over the operations
of the private sector bank Lakshmi Vilas Bank whose net worth has turned negative,
following mismanagement and two failed merger attempts with NBFCs. DBS India's then
having just 12 branches benefited by LVB's 559 branches. In a first of a kind move, Tier- II
bond holders have been asked by RBI to write off their holdings in LVB.

In the recent years banks are developing widely and bringing so many technological changes
in the banking sector and making banks expansion all over the places. This brings us to
understand that how banks help in growth of the country’s economy. The recent survey in
2020 there were 34 functioning banks in India of which 12 are public sector banks and rest 22
were private sector banks.

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The prospects of commercial banks from the year 2021 by making

Digitization:
With the rapid growth of technology, digital services became an indispensable part
of banking operations as these institutions needed to keep up with the changes and
introduce innovations that made services convenient. In India, the initial phase of
digitization began in the 1980s when information technology was used to perform
basic functions like customer service, bookkeeping, etc. Gradually core banking
solutions were also adopted to improve customer experience. The main shift came
during the 1990s when liberalization opened the Indian market to the global world.
Private and international banks which came into operation boosted technological
changes in the banking sector. Features like online banking, IMPS (Immediate
Payment Service), RTGS (Real Time Gross Settlement), telebanking
enabled customers to avail banking facilities from anywhere.
Mobile Banking:
Almost a decade back, even though digital services came into the picture, it was
only done through desktop computers which means the customer must be at home
or at a place with a computer and internet connection. But the vast penetration of
smartphones created a need among customers to avail banking services on their
mobile phones. Cheap data charges also contributed tow ards the increase in usage
of mobile banking.
Unified Payment Interface (UPI):
UPI is a trend that emerged in the last couple of years and it is revolutionizing the
way we pay and receive money. Transactions can be done within seconds using this
interface. Goggle Pay and BHIM (Government of India) are two major interfaces
among numerous other services that enable easy payment even if you are out of
physical cash.
Blockchain:
Blockchain is a robust technology that is still in the development phase. Security is
a major factor as far as digital services are concerned. Despite technical advances,
fraud practices are still a challenge in the digital domain. Blockchain is the answer
to these challenges. Like the way in which it operates, there is no scope for any
malpractices in it. The technology works on computer science, data structures and
cryptography.
Artificial Intelligence (AI) Robots :
Many private and nationalized banks have started to make use of chatbots or
Artificial Intelligence (AI) robots for assistance in customer support. The practice
is still in its initial stage but will definitely evolve and make the entrance to the
general public in the near future. Chatbots are one of the emerging trends that are
estimated to grow.

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Fintech Companies:
Fintech or financial technology is indeed a disrupting force in the sector. Due to
the changing landscapes in the Indian financial sector, many companies have
emerged to be a significant part of this ecosystem. Fintech companies specialise in
developing technology solutions that help companies to manage the financial
aspects of their business, like new software’s, applications, processes as well as
business models. Investments made on Fintech companies have increased
drastically in the past decade making it a multi-billion-dollar industry globally.
Digital-only Banks:
Digital-only banks operate only through IT platforms which can be accessed using mobile
phones, laptops or tablets. Digital-only banks operate in a paperless and branchless model
and seem to overtake the traditional system of banks in the future. These banks provide high-
speed banking facility at a low transaction charge. These virtual banks are an ideal choice for
the current fast-paced world.

All these recent trends will reshape the banking and finance industry by bringing
revolutionary changes in the traditional models. This shift is not devoid of challenges, but the
customers are quite open to innovations and the government is also showing great support for
these trends.

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Part B
Meaning of Enterprises:
Enterprise is another word for a for-profit business or company, but it is most often
associated with entrepreneurial ventures. ... Sole proprietorship – A company run by a single
individual, typically for their benefit, with unlimited liability for any damages that occur as a
result of the business' operations.

The term "enterprise" has two common meanings. Firstly, an enterprise is simply another
name for a business. ... Secondly, and perhaps more importantly, the
word enterprise describes the actions of someone who shows some initiative by taking a risk
by setting up, investing in and running a business.

Importance:

• Entrepreneurship is important, as it has the ability to improve standards of living and

create wealth, not only for the entrepreneurs but also for related businesses.
• Entrepreneurs also help drive change with innovation, where new and improved
products enable new markets to be developed.
• Too much entrepreneurship (i.e., high self-employment) can be detrimental to
economic development.

Types of enterprise
There are several types of enterprise, each one distinguished by its legal ownership,
including:

Private enterprise:

Sole traders:

Sole traders are the life-blood of a market economy. Sole traders are common in retailing and
local services like plumbing and catering. With local services demand limited, so the scope
for expansion is also limited. The sole trader owns the assets of the business, makes all the
business decisions, bears all the risks, and, of course, retains all the profits.

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Partnerships:

Partnerships are owned, and usually managed, by a small number of partners, each of whom
can specialise in a particular aspect of the business. Decisions will be jointly arrived at, and
the risks and rewards will be spread between the partners. In certain types of partnership, not
all partners bear equal risks, and some partners may have a limited liability for debts incurred
by the businesses. Partnerships are common in professional and financial services such as:

• Solicitors
• Accountants
• Estate agents

Private Limited Companies (Pvt Ltd):

Limited companies are legally ‘incorporated’ firms, which means that they have their own
legal identity, and are owned by shareholders who have limited liability for the firm’s debts.
Unlike sole traders and ordinary partnerships, limited, or joint-stock companies, are set up to
take advantage of the principle of limited liability.

The rapid development of limited companies in the 18th Century provided a stimulus to the
growth of private enterprise and the spread of free-market capitalism. This was because
limited liability encouraged ordinary individuals to part their savings, and so provide finance
for small or growing enterprises, without the risk of losing any more than the initial outlay.
Today, private limited companies are common in all areas of economic activity in all sectors
of the economy; from screenwriters and film producers, to restaurants and hotels.

In a limited company, shareholders appoint directors to take the key business decisions,
though often the directors are also shareholders. Directors make decisions collectively as
members of the Board of Directors.

Most of the significant risk taking is made by the Board of Directors, though day-to-day
decision-making is devolved to professional managers.

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Public Limited Companies (Ltd):

Like private limited companies, public limited companies are also legally incorporated and
are owned by shareholders who have limited liability for the firm’s debts, the difference
being that ‘public’ companies are allowed to sell shares to the general public.

To enable them to ‘go public’, and ‘list’ their shares on the stock exchange they must satisfy
strict criteria laid down by law covering the liquidity of the business, publication of financial
accounts, and number of previous years trading. The regulations governing public limited
companies in the UK are increasingly complex, and this partly explains the recent trend
towards ‘de-listing’ and returning to private limited status. The main advantage of being a
‘plc’ is that it is much easier to raise funds because shares can be offered for sale to any
member of the public. Shares can also be re-sold to other members of the public via stock
exchanges, so it is easy for investors to regain their liquidity.

Despite the tough regulations, most large firms prefer to remain ‘plc’s, or their equivalent in
other countries.

Public enterprise:

Public Corporations:

Public corporations, such as the British Broadcasting Corporation (BBC), are organisations
owned by the state. They are funded in a number of ways, including:

1. Government grants and subsidies

2. License fees
3. Charges for supplying their service

A Board of Governors rather than a Board of Directors usually control public corporations. If
their income is greater than their costs, they make a ‘surplus’ rather than a profit.

Widespread privatisation between 1980 and 2000 led to a reduction in the number of public
corporations. Despite being owned by the state, public corporations are frequently managed
along ‘commercial’ lines, as in the case of the BBC.

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Not-for-profit organisations:

In addition to public corporations, many other organisations are not established to make a
profit, though they may earn revenue and be run on commercial lines.

Examples of not-for-profit organisations include Network Rail, charities like Oxfam,

universities, and government sponsored organisations like the Office of National Statistics.

Emerging Enterprises:

“An emerging Enterprises is a group of companies in a line of business formed around a new
product or idea that is in the early stages of development.” These companies often come
about as one technology takes over another, older technology.

Characteristics of an Emerging Enterprises:

1. Minimal competition:

An industry that is in its early stage of development may only consist of a few businesses. As
a result, competition among the businesses is minimal.

2. Lots of growth potential:

New industries can expand the job market by creating jobs for individuals. If the industry
becomes profitable, it can continue to grow and expand. For example, 3D printers and
autonomous vehicles are newly-created technologies and are considered one of the latest
trends in the technological world that continue to demonstrate growth potential.

3. High risk and high volatility:

Developing a business in an emerging industry is risky if it cannot secure enough funding to

cover costs for operations. It is also difficult to find clients or consumers because they are
unfamiliar with the new product, which will make them hesitant to purchase or invest in it.

4. High prices due to the absence of economies of scale:

Businesses can achieve economies of scale when the efficiency in their production processes
allows them to produce more units of a product at a lower price. Businesses in an emerging
industry lack economies of scale, as they are still in the process of creating an efficient supply
chain and distribution channel.

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5. Low barriers to entry:

Entry into the market may be easy because there are few competitors. As long as companies
possess adequate financial resources and the knowledge to develop a similar product, they
will be able to enter the market.

Barriers for Emerging Industries:

1. Lack of consumer awareness and consumer loyalty:

A vast majority of people do not have awareness of emerging industries, so the companies
involved have to invest in a lot of marketing to help potential consumers become familiar
with the advantages of the new products or services.

2. Lack of financing:

Investors may be reluctant to invest in an industry that is not yet fully developed, as there are
larger financial risks associated with these companies.

However, entrepreneurs are gaining access to a growing number of capital sources in recent
years. For example, venture capital is a form of private equity financing that is popular for new
businesses. Several exchange-traded funds (ETFs) are also established for the purpose of
financially supporting emerging industries.

3. Restrictions and regulations:

Since the industry is new and unfamiliar, the government may impose restrictions or
regulations on business activities. It may prevent businesses from operating efficiently.

4. High costs of research and development:

New businesses may not possess adequate personnel, resources, and knowledge to establish a
new product. Therefore, they need to spend a lot on research and development.

5. Lack of suppliers:

Depending on what the product is, it may be difficult for suppliers to find sufficient raw
materials for businesses to make the product. Therefore, suppliers may be reluctant to work
with a business due to the level of difficulty in sourcing the right raw materials.

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Potential Strategies for Emerging Industries:

1. Low-cost:

A low-cost strategy for businesses to gain an advantage in the market by offering low prices
in comparison to their competitors. Doing so can increase consumer demand, which can help
the business increase revenue.

2. Differentiation:

Companies can aim to provide products that are unique and different. It will set them apart
from their competitors and gain a competitive advantage.

3. Strategic alliance:

Two or more companies can form a partnership to produce a new product together. Instead of
being a competitor with each other, companies can work with each other to increase profits.

4. Joint venture:

A joint venture involves at least two companies coming together to form a separate business
entity to combine assets, resources, and operations. Doing so allows companies to access a
bigger market and share financial risks.

Examples of Emerging Industries

Nowadays, many emerging industries are putting their focus on new technologies. Examples
include robotics, virtual reality, 5G networks, blockchain technology, artificial intelligence,
and self-driving cars.

Also, emerging industries in the past are considered well-established industries today. In the
1990s, the internet was a new technology that became increasingly popular, creating the
dotcom bubble.

However, many dotcom businesses generated very little revenue, and some went out of
business after the burst of the dotcom bubble. The companies that overcame difficulties when
the internet was an emerging industry are now well-established corporations, such as Google,
eBay, and Amazon.

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Meaning of Entrepreneur:

An entrepreneur is an individual who creates a new business, bearing most of the risks and
enjoying most of the rewards. The process of setting up a business is known
as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new
ideas, goods, services, and business/or procedures.

Motives of an Entrepreneur:

1)Financial motives: Having better income and making a large profit.

2) Social motives: Wanting to do something for the communities, charity work, running a
club.

3)Personal motives: Being your own boss and making your own rules.

Skills and characteristics of an entrepreneur:

1. Determined and accept their will be knock backs along the way
2. Initiative and good decision making: To be able to think on your feet and make the
best decisions for the business.
3. Communication: Be able to deal with customers, suppliers and investors
professionally.
4. Analytical ability: Be able to review and reflect business actions and decisions you
make
5. Results focused to get the jobs done to the best of your ability no matter.
6. Confidence to set up a successful business and to gain customers.
7. Motivated as you are the boss and there is nobody telling you what to do.

Objectives of an Entrepreneur:

1. Sketching an apt business plan

2. Hiring and retaining a skilled workforce
3. Financial stability
4. Aligning marketing and sales
5. Generating greater ROI (Return on investment)
6. Creating a brand appeal
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Pros and cons of an entrepreneur

Pro’s

1. Be your own boss

2. Choose your own team
3. Creative expression
4. Excellent learning experience
5. Flexible schedule
6. Greater potential profit
7. Develop an inspiring work culture

Con’s

1. Multiple roles and responsibilities

2. Work life balance
3. Self-motivation
4. High risk
5. Limited supplies and technology
6. Fewer benefits
7. Building reputation

Emerging Entrepreneurs:

It has another name Nascent Entrepreneurs it means those entrepreneurs actively planning a
new venture. Emerging is coming into view or taking shape or surviving and coming out
from difficult situation.

The 'one-person enterprise' is defined as being 'an unincorporated entity established by an

individual entrepreneur'. nascent entrepreneurs – those actively planning a new venture; new
firm entrepreneurs – a new business that is between four and 42 months old; established
business owners – over 42 months old.

Defines emerging as follows:

1. To rise from an obscure or inferior position or condition

2. To rise from or to come out into view
3. To become manifest
4. To come into being through evolution

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CHAPTER-2
RESEARCH DESIGN

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Chapter 2
RESEARCH DESIGN

The research design is the conceptual structure within which researches conducted. It
constitutes the blue print for collection, measurement and analysis of data. A research design
is a basic plan, which guides the data collection and analysis the phases of the project. It is
frame work which specifies the type of information to collect the sources of data and data
collection procedure.

“A research design is the arrangement of conditions for collections and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in the
procedure” This chapter brings out the design of the study specifying the title of the study and
then advances on to explain the problem, objectives, hypothesis, methodology, tools for data
collection, geographical area, period of the study, limitations of the study and the chapter
scheme.

Title of the study

A study on commercial banks in financing emerging entrepreneurs in Canara bank.

Statement of the problem

At present scenario forming a new product or idea of that early stage requires a huge amount
of capital. Forming a new business by emerging of companies is a good thing but it requires a
certain amount of capital. If the emerging companies don’t have enough of capital to form a
new business, they can take help of commercial banks. To understand the role played by
commercial banks for financing emerging entrepreneurs this study has been conducted.

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Objectives of the study

1. To know how commercial banks plays a key role in financing new business.
2. To evaluate the performance of canara bank in financing new entrepreneur.
3. To identify the prospects of canara bank in financing entrepreneurs.
4. To examine the entrepreneurs with reference to services rendered by the canara banks.
5. To identify different type of services that are been rendered by commercial banks for
new business.

Scope of the study

The study is confined to know the various services rendered by commercial banks for
emerging entrepreneurs. However, there was no comparative study made between various
banks. The study is limited only to CANARA BANK.

Limitations of the study

1. 1.The study is limited to CANARA BANK.

2. Certain information which is vital to the study was kept confidential which is one of
the drawbacks.
3. Time was a major constraint.
4. Lack of information and previous studies.

Methodology of study
Type of research:
This research in descriptive nature, it is used to collect the information to draw a conclusion.

Type of data collection

1. Primary data:

Primary data was collected by meeting the official staff and personal interview with new
business persons regarding the financial services that are provided to them through
questionnaire.

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2. Secondary data:

Secondary data was collected from the bank official website, journals of Canara Bank for
enrichment and growth of financing new business, advertisements of canara bank.

Research Instrument

Questionnaire was the specific data collection instrument used for obtaining primary
data. The questionnaire contained a well-defined set of questions of an objective nature;
without leading to any ambiguity and suggestively; arranged in categories to ensure easy and
accurate responses. It’s collected both quantitative and qualitative information of commercial
banks financing for emerging entrepreneurs.

Sample size
The study consists of 50 samples, both male and female.

Plan of analysis

The plan of analysis is carried on by issuing these questionnaires, and collecting data
through these questions. These responses given by respondents will be analysed and
interpreted into appropriate bar graphs.

OPERATIONAL DEFINITIONS OF CONCEPTS

Amenities – Any feature that provides comforts, convenience or pleasure.

Sample unit - Canara bank.

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Review of Literature

Cristiano Bellavitis,Igor Filatotchev,Dzidziso Samuel Kamuriwo&Tom Vanacker(2016)

The proliferation of new sources of entrepreneurial finance potentially makes it easier for
ventures to raise capital and grow. To date, entrepreneurial finance literature has developed a
rich tradition of research on venture capital and angel finance. However, the emergence of
“new” sources of finance, such as crowdfunding and the limited attention paid to “traditional”
debt financing and financial bootstrapping, offers opportunities to explore, from different
points of view and theoretical perspectives, the challenges that ventures face. The objective
of this Special Issue is to explore these new and traditional sources of finance and suggest
how these phenomena can extend entrepreneurial finance literature and guide new theory
building. This paper outlines the new sources of entrepreneurial finance, and in comparing
them with more traditional sources, we propose theoretical and empirical challenges that
these new and traditional sources present to entrepreneurship scholars. We also provide a
brief summary of papers in the Special Issue and outline promising avenues for future
research.

Marius Pretorius Gordon Shaw(2004)

This article focuses on the position that South African commercial banks adopt when
evaluating an application for finance of new business ventures. The role and importance of
the business plan in the decision-making process is highlighted and investigated. This article
begins to qualitatively describe the decision-making processes, criteria and processes
instituted by the four major South African commercial banks that between them serve 96 per
cent of the banking services for small business. It then questions the barriers placed on
applicants applying for finance and recommends how these barriers can be removed. The
article concludes that banks finance business ventures with poor potential for success if the
applicant is creditworthy or has the necessary security rather than assist applicants with good
plans and ventures with potential, but lacking sufficient security.

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Oleksandr Talavera, Lin Xiong & Xiong Xiong (2014)

This paper presents the results of a study of the effects of social capital on access to bank
financing. Based on a Chinese nationwide survey, our analysis suggests that entrepreneurs
who contribute to charities are more likely to be successful in loan applications. In addition,
we find that political party membership is an important determinant of state-owned bank
financing, whereas time spent on social activities increases the probability of obtaining loans
from commercial banks. Therefore, our data provide some evidence for substitutability
between various types of social capital. To obtain a loan from a specific type of bank, an
entrepreneur should access the relevant social network.

Jarunee Wonglimpiyarat(2015)

Today, the financing mechanisms to support small-and medium-sized enterprises (SMEs)

development have been a subject of great interest and a challenge to policy makers as SMEs
are regarded as an important sector contributing to economic growth and stability. This paper
is concerned with the bank financing policies to support SME development in China. The
purpose of this paper is to examine the governmental financing policies and the innovation
financing system of China. The discussions are focused on the bank financing policies to
support SME development in China.

David Deakins, Monder Ram, David Smallbone, Margaret Fletcher(2003)

This chapter is concerned with access to bank finance by ethnic minority businesses (EMBs)
in the U.K., focusing particularly on the process of decision-making by bank managers with
respect to credit applications by entrepreneurs from ethnic minority groups. The results
reported in this chapter are taken from a major U.K. study that included two large scale
surveys of EMB owners and a white control group, case studies with ethnic minority
entrepreneurs and a programme of interviews with business support agencies. Whilst
referring to other evidence, this chapter focuses on the findings from a series of interviews
with bank representatives. The U.K. study was funded by the British Bankers’ Association
(BBA), the Bank of England and the Small Business Service and supported by the
Commission for Racial Equality.

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CHAPTER-3
COMPANY PROFILE

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Chapter 3

COMPANY PROFILE

History and growth of canara Bank

The Canara Hindu Permanent Fund Limited was formally registered on 1 July 1906. The
Canara Hindu Permanent Fund, like the Canara Banking Corporation started when the Bank
of Madras already existed in South Kanara district. This is because the Bank of Madras dealt
mostly with the rich and prosperous business or landlord class. Secondly, the Bank of Madras
charged heavy interest rates and the founders of the two 'native' banks wanted to make bank
available and accessible to all who need banking services irrespective of their financial and
social standing. A third reason, surely, is that the Swedish movement that started around 1905
was catching on and led to an outburst of banking activity everywhere in the country. It is a
fact that the agitation connected with the partition of Bengal has a great deal to fillip to the
starting of indigenous joint stock banks. Thus, the Bank of Burma was established in 1904,
though it failed in 1911. Between 1906 and 1914, a large number of new banks came up,
notably the Bank of India (Bombay) in 1906, the Canara Banking Corporation (Udupi) in
1906, the Canara Bank (Mangalore) in 1906, the Indian Bank (Madras) in 1907, the Punjab
and Sind Bank (Amritsar) in 1908, the Bank of Baroda (Baroda) in 1908, the Central Bank of
India (Bombay) in 1911 and Bank of Mysore (Bangalore) in 1913.

It was on the 1st July 1906, that the BANK was founded as the CANARA HINDU
PERMANENT FUND LIMITED. Shortly before this, there was the sensational failure of
Arbuthnot and Company, Madras, which ruined innumerable families in the Madras
Presidency. At that time, the only Public Bank in the district was the Madras Bank.
The Madras Bank created to the needs of only the bigger traders or merchants who required a
few hundred or at the most one or two thousand could resort only to moneylenders who
charged exorbitant rates of interest.

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Sri Subba Rao Pai, was much exercised in mind as to how he could assist these small traders
and middle-class families. Thus, under the leadership of Sri Subbu Rao Pai, a group of small
businessmen and professionals of South Kanara came together and founded the "CANARA
HINDU PERMANENT FUND LIMITED".

Type: Canara bank is a nationalized bank.

The following are the FOUNDING PRINCIPLES:

1. To remove superstition and ignorance.

2. To spread education among all to sub-serve the first principle.

3. To inculcate the habit of thrift and savings.

4. To transform the financial institution not only as the financial heart of the community but
the social heart as well.

5. To assist the needy.

6. To work with sense of service and dedication.

7. To develop a concern for fellow human being and sensitivity to the surroundings with a
view to make changes / remove hardships and sufferings.

BANK'S TRADITION:

- Social Service.

- Serving to Grow and Growing to Serve.

-Excellence in service.

-Helpfulness to others.

- Commitment to the society to help the needy, help to spread education and improve the
quality of life. -Commitment to the institution - sacrifice, loyalty and belonging.

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BANK’S CULTURE:

- Accessibility to everyone.

- A work culture where family concept is practiced among working people.

- Oneness while striving to reach the goals.

- Tolerance to dissent.

- Receptivity to new ideas. - Opportunities for experimentation.

Objectives:

• To Identify, Motivate and Train Women Entrepreneurs.

• To Conduct General and Skill Development Programmes (EDPs) for different
Target Groups.
• To Assist Potential Women Entrepreneurs to start/establish/run an Enterprise
professionally.
• To Guide Existing Entrepreneurs in improvisation modernization of an existing
unit.
• To co-ordinate with Government/Voluntary organizations engaged in promoting
entrepreneurship among women.
• To offer counselling services to the Entrepreneurs existing as well as prospective.
• To popularize the concept of Self-Help Groups among women as well assist them
in formation of SHGs, credit linkage and trainings.

BRANCHES & OFFICES:

The bank has about 10,416 branches with over 12,272 ATM’s. Received runner up CIMSME
award (Chamber of Indian micro small and medium Enterprise) for best MSME bank (Large
category) and financially inclusive bank (Large category).

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BRANCHES AND OFFICES ABROAD:

Canara Bank established its International Division in 1976, to supervise the functioning of its
various foreign departments, to give required thrust to foreign exchange business, particularly
exports and meet the requirements of NRI's.

Though small in size, the Bank's presence abroad has brought in considerable foreign
business, particularly NRI deposits. The Bank has its presence abroad as under:

• Canara Bank, London, U.K (branch)

• Indo Hong Kong International Finance Co. Ltd., Hong Kong (subsidiary)
• Canara Bank, Moscow (representative office)
• Al Razouki International Exchange Company, Dubai, UAE. (Secondment agreement
and DD drawing facility on Canara bank) Eastern Exchange Establishment. Doha,
Quatar. (Management agreement and DD drawing facility on Canara bank).

In addition, following exchange companies have DD drawing arrangement on Canara Bank:

• All Fardan Exchange Company, Abu Dhabi, UAE.

• . UAE Exchange Centre, Abu Dhabi, UAE.
• Leela Megh Exchange Company, Dubai, UAE.
• Thomas Cook Al Rostamani Exchange Company, Dubai, UAE.
• Kuwait Bahrain International Exchange Company, Kuwait.
• Musandam Exchange, Muscat, Oman.
• Laxmi Das Tharia Ved Exchange Company, Muscat, Oman

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Board of directors

Managing Director & Chief Executive Officer - Shri L V Prabhakar

Executive directors

Shri. Debashish Mukherjee

MS. A. Manimekhalai

Shri K Satyanarayana Raju

Shri Brij Mohan Sharma

Directors

Director representing Reserve Bank of India- Sri R Kesavan

Director representing Government of India- Shri. Suchindra misra

Shareholder Director- Shri. Venkatachalam Ramakrishna Iyer

Shareholder Director- Shri. Bimal prasad Sharma

Business operations

1. Acceptance of Deposits
2. Lending of Funds
3. Clearing of Cheques
4. Remittance of Funds
5. Lockers & Safe Deposits
6. Bill Payment Services
7. Online Banking
8. Credit & Debit Cards
9. Overseas Banking Services
10. Wealth Management
11. Investment Banking
12. Social Objectives

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Organization structure :

Board of directors

Chairman & Managing Directors

Executive Directors Scale 8

General manager

Deputy General Manager

Assistant General Manager

Divisional Manager

Manager

Assistant Manager

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Product / services and market share

Personal Banking:

Canara Bank India provides the following services under the Personal Banking section: -

• Loans
• Home Loan
• Life Insurance
• Canara Global credit Cards
• Canara champ deposit scheme
• Personal Loan
• Loan against Property
• General Insurance
• Canara premium current account
• SB gold scheme
• Canara super savings salary account scheme
• CANARA ROBECO Mutual Fund Products
• Overdrafts

Corporate Banking:
Canara Bank provides par excellence services in Corporate Banking as well. These include,

• Syndication Services
• IPO Monitoring Activity
• Merchant Banking Services
• Accounts & Deposits
• Cash Management Services
• Loans & Advances
• TUF Schemes
• Canara electronic Tax

Apart from these, the Canara Bank also has exciting offers and packages for NRIs.

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NRI Banking:

• Can bank remit money scheme

• Rupee drawing arrangement
• Swift
• Bank-western union remittances scheme

Priority & SME Credit:

The following facilities are listed under this service: -

• Priority Credit
• SME Business
• SME Marketing Desk
• Regional Rural Banks
• Consultancy Services related to agriculture
• Agri-Business Marketing Desk
• Rural Development
• Entrepreneurship Development for women
• Social Banking

Some of the loans provided by the Canara Bank include;

Bank Deposits:

• Savings Bank Deposits

• Canara Super Savings Salary A/c
• Canara Flexi A/c
• Current Account
• Savings Bank Gold A/c
• Canara Saral
• Canara Champ
• Can Premium Current Account

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Loans & Advances:

• Housing Loan
• Loan for Personal Needs
• Loan for Personal needs of Teaching/Non- Teaching Staff
• Loan for Pensioners
• Loan against Security of Mortgage of Property
• Loan against approved Shares/Debentures/Mutual Funds

Canara Bank Loans:

Canara Bank provides all conventional banking facilities and various contemporary banking
products. The various types of Canara Bank Loans, which are offered to the customers
include:

• Personal Loan
• Home Loan
• Consumer Loan
• Vehicle Loan
• Educational Loan
• CEMAT Facilities
• Agricultural Loan

Competitors:

1. State bank of India (SBI)

2. Bank of Baroda (BOB)
3. Bank of India (BOI)
4. Andhra Bank
5. Axis Bank
6. HDFC
7. ICICI Bank
8. Kotak Mahindra

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Subsidiaries and Joint ventures

1. CANARA ROBECO ASSET MANAGEMENT COMPANY LIMITED

2. CANBANK FINANCIAL SERVICES LIMITED

3. CANARA BANK SECURITIES LIMITED

4. CANBANK COMPUTER SERVICES LIMITED

5. CAN FIN HOMES LIMITED

6. CANBANK FACTORS LIMITED

7. CANBANK VENTURE CAPITAL FUND LIMITED

8. CANARA HSBC ORIENTAL BANK OF COMMERCE LIFE INSURANCE

COMPANY LIMITED

9. SYNDBANK SERVICES LIMITED

10. HEFA - HIGHER EDUCATION FINANCING AGENCY

Future prospects of the company

Canara HSBC OBC Life Smart Goals Plan:

The Canara HSBC OBC Life Smart Goals Plan is a Unit Linked Insurance Plan with two
options for life cover. It is a non-traditional insurance plan that does not have bonus
facility. This plan enables policyholders to plan and prepare for future goals and fu ture
financial and requirements, while providing protection for their loved ones in the
unfortunate event of their premature demise.

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Guaranteed Income4Life:
This is a savings cum protection plan that offers guaranteed benefits as well as regular
income to take care of both long-term and short-term financial goals. Guaranteed
Income4Life is a highly customizable life insurance plan that offers various flexibilities in
terms/ premium payment options etc. so as to align the plan to an individual’s life stages and
needs.

Guaranteed Savings Plan:

A plan that offers guaranteed benefits along with the flexibility to choose your savings
horizon. You can choose from 3 different plan options and customize the policy to suit your
financial goals and requirements.

Titanium Plus Plan:

This is a unit linked investment cum protection plan which can be customized as per your
goals and changing requirements. This plan provides you unmatched flexibility while letting
you have full control over your investment in any market movement.

Jeevan Nivesh Plan:

A savings-cum-protection plan that provides life insurance cover and savings in the ease of a
single plan. Make a onetime investment for a lifetime of regular returns.

Money Back Advantage Plan

This is an Individual Non-Linked Par Life Insurance Savings cum Protection Plan. This
product provides guaranteed money back playouts during the policy term along with
guaranteed lump sum on maturity and bonus(es) which can be utilized to fulfil various
planned milestones.

Easy Bachat Plan:

A life insurance policy that helps you plan your savings in hassle free manner and provides
financial protection to your family at affordable premiums.

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Awards and Achievements

Awards/Accolades Received during 2020-21

• In IBA’s 16th Annual Banking Technology Awards, Canara Bank received Joint
Runner-up award for Best Payment Initiatives.
• Canara Bank received Finnoviti 2021 award for Integration of Govt Scheme
Demat Trading Insurance.
• Public Relations Council of India has given bronze award for our in-house
Magazine Shreyas under House Journal – Print (English) category
• In 59th ABCI Annual Awards, Canara Bank’s in-house Magazine “Canara Jyothi”
has received awards under “Indian Language Publication” and “special column
(language)” categories.
• Canara Bank has received “Award of par Excellence” in APY Big Believers 3.0
(ABB) organised by PFRDA.
• Canara Bank has received “Exemplary Award” from PFRDA for achievement
under Atal Pension Yojana “Old Age Financial Freedom Fighters”.
• Canara Bank has received “Certificate of Excellence – Amazing Achievers of
APY” from PFRDA.

Awards/Accolades Received during 2019-20

• Canara Bank has been awarded ‘India’s Most Trusted Public Sector Banking
Services Company 2019’ by International Brand Consulting Corporation, USA.
• IBAs 15th Annual Banking Technology Award 2020 received for Most Customer-
Centric Bank using Technology
• Canara Bank has been awarded ‘SIDBI-ET INDIA MSE AWARD-2019’ under
noteworthy Lender to MSE Category – (Public Sector Bank).
• Canara Bank received National award for SHG Bank Linkage 2018-19 (Public
Sector Banks) from DAY-NRLM, Ministry of Rural Development.
• Canara Bank won Tax Deduct or of the Year Award for recognition of timely
compliance to the TDS/TCS provisions of Income Tax Act.
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• Canara bank has been conferred with VISA GLOBAL QUALITY AWARD 2018
for the lowest global frauds reflection our commitment to deliver superior service
quality.
• Skoch Order of Merit Award 2019 for Canara Diya, Canara Recovery App, Canara
Digital Learning & Social Media Analytics and Campaign management.
• Best innovation in Banking technology award for CANDI Branch received in
IDRBT banking technology innovation contest.
• Canara Diya won Silver in SKOCH Awards 2019
• FINNOVITI 2020 award received for CANDLE for one of the best innovations in
financial sectors’ technology.
• Canara Bank received the award for Best Data Quality Management 2018-19 at the
Annual Credit Information Conference.

Awards/Accolades Received during 2018-19

• Central Vigilance Commission has awarded Canara Bank with ‘Vigilance
Excellence Award-Outstanding’ under Category ‘Timely Completion of
Disciplinary Proceedings’ for the year 2018.
• Bank received first runner up award on theme Credit off-take in EASE Banking
Reform Awards 2019.
• Bank has bagged four awards from the Associated Chambers of Commerce and
Industry of India (ASSOCHAM) under Agriculture, Priority sector lending, Social
Banking and Technology.
• Bank has bagged eight Awards from Public Relations Council of India (PRCI)
including 3 Gold under Television Commercials, Advertising Corporate Campaign
RADIO and Advertising Corporate Campaign Television
• NPCI Special Award in recognition of excellent performance in NFS ATM
Network, Rupay, CTS & UPI / IMPS.
• Bank’s House magazine ‘Shreyas’ bagged Making of Developed India Award
sponsored by ET Now for best in house magazine for the year 2018.
• Secured Chamber of Indian Micro Small & Medium Enterprises (CIMSME)
awards for best bank for promotional schemes (Large category).
• Received runner up CIMSME award for best MSME bank (Large category) and
financially inclusive bank (Large category).

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• Secured PFRDA’s best performing PSB award in APY performance and the
splendid seven awards for the APY campaign.

Awards/Accolades Received during 2017-18

• Received Master card Innovation Award for Canara International Prepaid card
under prepaid segment.
• “Rupay Special” award for being the highest Rupay card issuing bank by NPCI.
• VISA Award on crossing a key milestone on issuance of 1.35 crore VISA debit
card.
• Bagged FINNOVITI award for Innovation for CANDI Branch.
• ASSOCHAM Social Banking Excellence Awards 2017 for Government Sponsored
Schemes and Runner-up for Agriculture Banking in the Large Bank Class.
• Golden Peacock Award 2017 for Corporate Social Responsibility from Institute of
Directors, New Delhi.
• Skoch Technologies Growth 2017 for “CANDI”, digital branch.
• Excellent Customer Service Award’ at the 5th SME Excellence 2017 by
ASSOCHAM,
• Best CIO of the Year” by Computer Society of India for “CANDI” an ambitious
digital banking project of the Bank in the “IT Innovation & Excellence
Awards2017”
• Skoch Smart Security awards 2017 for “SIEM” tool.
• Dun and Bradstreet Award for 2016-17 adjudging as Best Public Sector Bank –
Priority Sector Lending Bank. Consecutively third time (2014-15, 2015-16 and
2016-17) Bank has been receiving this Award.
• Certificate of Excellence for exemplary leadership in promoting RSETIs and
Certificate of Excellence for RUDSETI for FY15 & FY16

➢ There are some significant milestones of canara bank

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Significant Milestones

1st July Canara Hindu Permanent Fund Ltd. formally registered with a capital of 2000 shares of Rs. 50/- each,
1906 with 4 employees.

1910 Canara Hindu Permanent Fund renamed as Canara Bank Limited

1969 14 major banks in the country, including Canara Bank, nationalized on July 19

1976 1000th branch inaugurated

1983 Overseas branch at London inaugurated, can card (the Bank’s credit card) launched

1985 Takeover of Lakshmi Commercial Bank Limited and Commissioning of Indo Hong Kong International
Finance Limited (now a full-fledged branch)

1987 Can bank Mutual Fund & Can find Homes launched

1989 Can bank Venture Capital Fund started

1989-90 Can bank Factors Limited, the factoring subsidiary launched

1992-93 Became the first Bank to articulate and adopt the directive principles of “Good Banking”.

1995-96 Became the first Bank to be conferred with ISO 9002 certification for one of its branches in Bangalore

2001-02 Opened a 'Mahila Banking Branch', first of its kind at Bangalore, for catering exclusively to the
financial requirements of women clientele.

2002-03 Maiden IPO of the Bank

2003-04 Launched Internet Banking Services

2004-05 100% Branch computerization

2005-06 Entered 100th Year in Banking Service. Launched Core Banking Solution in select branches. Number
One Position in Aggregate Business among Nationalized Banks.

2006-07 Retained Number One Position in Aggregate Business among Nationalized Banks. Signed MoUs for
Commissioning Two JVs in Insurance and Asset Management with international majors viz., HSBC
(Asia Pacific) Holding and Robeco Groep N.V respectively.

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2007-08 Launching of New Brand Identity. Incorporation of Insurance and Asset Management JVs. Launching
of 'Online Trading' portal. Launching of a ‘Call Centre’. Switchover to Basel II New Capital Adequacy
Framework.

2008-09 The Bank crossed the coveted Rs. 3 lakh crores in aggregate business. The Bank’s 3rd foreign branch at
Shanghai commissioned.

2009-10 The Bank’s aggregate business crossed Rs. 4 lakh crore mark. Net profit of the Bank crossed Rs. 3000
crores. The Bank’s branch network crossed the 3000 marks.

2010-11 The Bank’s aggregate business crossed Rs. 5 lakh crore mark. Net profit of the Bank crossed Rs. 4000
crores. 100% coverage under Core Banking Solution. The Bank’s 4th foreign branch at Leicester and a
Representative office at Sharjah, UAE, opened. The Bank raised Rs. 1993 crore under QIP. Govt.
holding reduced to 67.72% post QIP.

2011-12 Total number of branches reached 3600. The Bank’s 5th foreign branch at Manama, Bahrain opened.

2012-13 Highest Dividend of 130% paid for the year

2013-14 1027 branches and 2786 ATMs opened during the year. Global business crossed the Rs.7 lakh crore
milestone. Switchover to Basel III New Capital Adequacy Framework. Branch Network and ATMs
increased to 4755 branches and 6312 ATMs.

2014-15 Global Business of the Bank crossed Rs.8 lakh crore.

2015-16 The Bank’s 8th foreign branch at DIFC (Dubai) opened.

2016-17 Branch network crossed 6000 milestones. Total number branches rose to 6083.Canara Bank (Tanzania)
Ltd., a foreign subsidiary, opened.

2017-18 Global Business of the Bank crossed Rs.9 lakh crore.

2018-19 Global Business of the Bank crossed 10 lakh crores, Bank issued 2 core new equity shares to employees
under Canara Bank Employee Share Purchase scheme (Can Bank-ESPS).

2019-20 Domestic Business of Canara Bank crossed Rs. 10 Lakh Crore.

1st Amalgamation of erstwhile Syndicate Bank with Canara Bank, thus creating the country’s fourth largest
Apr’20 Bank with a strong network of 10391 domestic branches, 13423 ATMs.

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2020-21 Domestic Business of Canara Bank crossed Rs. 16 Lakh Crore and Bank has recorded a Net Profit of
Rs. 2557 Crore in FY21.

SWOT Analysis

Canara bank is a public-sector bank owned by the Government of India and is one of the
largest banks in the kitty of the government. The headquarters of the bank is located in the
city of Bangalore in Karnataka. The bank started in the year 1906 in Mangalore. It is one of
the oldest banks in the country. It has more than 6000 bank branches in India. It is present in
different other countries as well.

Strengths in the SWOT analysis of Canara Bank:

This helps in understanding the core areas of the business where it beats the competition and
has the competitive advantage in the market. Strengths are generally the core competency of
the business.

1. Schemes are innovative in nature –The schemes introduced by the bank are
very innovative in nature. It provides loans at a very low rate for people living in
the rural areas and hence helps in uplifting the living standard in rural areas by
helping farmers. It collaborated with UNEP so as to launch a scheme for solar
loans.
2. The banking style –In comparison to other public banks in India Canara bank
articulates the best practices and creates a good banking experience for the
customers which leads to the better brand image in the minds of the customers.
3. Employment Generation – The banks employ more than 40000 people in India
and hence generates employment for the huge amount of people.

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Weaknesses in the SWOT analysis of Canara Bank:

This is the pain area of the organization where it does not have the resources or skills. Business
has to work upon these areas so that they are not left behind from the competition. Though
there will be some or the other weakness but it should not be an area which takes the business
out of the market

1. Marketing is Poor – Being a public bank in India the marketing focus is very
less and hence this leads to low publicity in the market despite offering good
banking facilities and experience to the customers. Bank does not have a
marketing department which focuses on increasing the awareness of the bank in
the market.
2. Customer Service is Poor – The banking industry in India is very competitive
and customer service is one thing which uniquely differentiates the bank. Canara
bank has not been able to deliver a good customer service. Customers are
generally not happy with the way staff handles the queries and imparts services
at the banks. Also, the online banking facilities are not very well developed.
3. Client Base is Poor – The bank does not have a good customer base of high-
income groups. Thus, the revenue generation is from low-income groups which
do not increase the bottom line of the bank and hence the growth is slow

Opportunities in the SWOT analysis of Canara Bank:

This helps in understanding what other things a business can do with the current skills and
resources. It helps the business to know the areas where it can expand and take a lead in order
to diversify the business and expand the customer base

1. Rural Banking – The bank can explore more aspects of rural banking as the
majority of Indians are living in the rural areas and hence by fulfilling their
banking needs the bank can grow its revenue.
2. Social Banking – In the era of social media the banks are adopting
social channels and hence catering to the needs of customers using an additional
challenge and saving their time to visit physical banks.

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Threats in the SWOT analysis of Canara Bank:

This analysis helps in understanding what are the areas which can impact the business in future
or right away. So, business has to prepare itself to handle the threats in the market landscape.
Competition or increasing number of players in the market with same value proposition is a
threat to business as it directly lowers down the customer base and revenue

1. Competition is Increasing from Private Sector Banks – Private sector banks

are coming up with innovative investment schemes and hence taking the share
of retail customers.
2. Economic crisis – Due to the economic crisis the customers are not saving
money in the banks and hence this reduces the liquidity of banks and they cannot
operate smoothly due to lack of cash.
3. Changing Policies – Banking policies are subject to the rules and regulation of
RBI and hence any changes from RBI have a direct impact on the operations of
the bank.

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CHAPTER-4
DATA ANALYSIS
AND
INTERPRETATION

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Chapter 4

DATA ANALYSIS AND INTERPRETATION

A Study has been made on commercial banks financing emerging entrepreneurs with
reference to canara bank. The data is collected from entrepreneurs. This data has been
collected by way of structured questioners through interviewing the respondents while
preparing the questioners care was taken to see that questions were being framed relevant to
the objective of the study. The questions were prepared to evaluate the entrepreneur’s opinion
and perception towards canara bank.

There were total of 50 respondents.

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TABLE – 4.1

Gender wise classification of respondents

GENDER NO. OF RESPONDEBTS PERCENTAGE (%)

MALE 39 78

FEMALE 11 22

TOTAL 50 100

ANALYSIS:

From the above table, out of 50 total respondents 39 are male that is 78% and
11 respondents are female that is 22%.

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CHART 4.1

Gender wise classification in pie chart –

INTERPRETATION:

From the above graph we can observe that, number of male respondents are
more than compared to female respondents.

PERCENTAGE

MALE FEMALE

78% 22%

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TABLE – 4.2

Age wise classification in flowchart -

ANALYSIS AND INTERPRETATION:

From the above chart, we see that there were different age group respondents.

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TABLE 4.3

Existence of respondents in business -

Span of Existence No of Respondents Percentage (%)

Less than 1 year 5 10

1-3 years 8 16

3-5 years 15 30

More than 5 years 22 44

Total 50 100

ANALYSIS:

The above table represents the span of existence of enterprise of respondent,

whereas number of respondents Less than 1 year are 5 out of 50 that is 10% out
of 100%, 1-3 years are 8 out of 50 that is 16% out of 100%, 3-5 years are 15 out
of 50 that is 30% out of 100%, More than 5 years are 22 out of 50 that is 44 %
out of 100%.
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CHART 4.3

Existence of respondents in business–

INTEPRETATION:

From the above chart, we can interpret that the majority of enterprises are More
than 5 years that 44% out of 100%, and second highest is in 3-5 years that is
30% out of 100%.

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TABLE 4.4

Turnovers of respondents –

Turnover No of respondents Percentage (%)

Less than 20 Lakhs 11 22

20Lakhs-50Lakhs 13 26

50Lakhs-1Crore 11 22

More than 1 Crore 15 30

Total 50 100

ANALYSIS:

The above table represents the turnover made by respondents, less than 20Lakhs
are 11 out of 50 that is 22% out of 100%, 20lakhs-50lakhs are 13 out of 50 that
is 26% out of 100%, 50lakhs-1crore are 11 out of 50 that is 22% out of 100%,
More than 1crore are 15 out of 50 that is 30% out of 100%.

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CHART 4.4

Turnover of respondent’s chart-

INTERPRETATION:
From the above graph we can see percentage of number of respondents who has
more turnover. Here More than 1crore is highest 30% out of 100%.

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TABLE 4.5

Number of respondents having canara bank account-

Opinion No of respondents Percentage (%)

Yes 33 66

No 17 34

Total 50 100

ANALYSIS:
The above table represents whether the respondents have account in canara
bank, as opinion given by the number of respondents having account are 33 out
of 50 that is 66% out of 100%, and the respondents who does not have an
account are 17 out of 50 that is 34% out of 100%.

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CHART 4.5

Number of respondents having canara bank account-

INTERPRETATION:
From the above graph we can measure that how many respondents have account
in canara bank are 33 out of 50 that is 66% out of 100%. We conclude that
more mumber of people have account in canara bank.

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TABLE 4.6

Respondents opinin on services provided by canara bank –

Opinion No of respondents Percentage(%)

YES 26 52

NO 6 12

MAYBE 18 36

Total 50 100

ANALYSIS:
The above table represents the opinion of respondents on services provided by
canara bank. As there are 26 respondents which is 52% who are fully satisfied
with the bank services, 6 respondents which is 12% who are not satisfied with
the bank services and 18 respondents which is 36% who are partially satisfied
with the bank sevices.

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CHART 4.6

Respondents opinin on services provided by canara bank –

INTERPRETATION:

From the above chart, we can see that number of respondents who are fully
satisfied with the canara bank services are more compared to not satisfied and
partially satisfied respondents.

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TABLE 4.7

Number of entrepreneurs took business loans from canara bank –

Opinion No of respondents Percentage (%)

YES 21 42

NO 23 46

MAYBE 6 12

Total 50 100

ANALYSIS:
The above table represents the number of respondents who took business loans.
As there are 21 respondents which is 42% took business loan, 23 respondents
which is 46% not took business loan and 6 respondents which is 12% partly
responded.

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CHART 4.7

Number of entrepreneurs took business loans from canara bank –

INTERPRETATION:
From the above graph we can study that no of respondents who didn’t took
business loan are more compared to respondents who took business loan.

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TABLE 4.8

Respondents’ reasons who haven’t taken loans from canara bank -

Reasons No of respondents Percentage (%)

Under-age 2 10.7

Rate of interest is more for 5 25

borrowed amount

Services rendered are not 10 42.9

satisfying

Other 6 21.4

Total 23 100

ANALYSIS:
The above table represents, the reasons of respondents who didn’t loan from the
bank. As there 2 respondents who are under age which is 10.7%, 5 respondents
are not satisfied with interest rate which is 25%, 10 respondents are not
comfortable with the services from bank which is 42.9% and 6 respondents has
their own reasons not to take loan which is 21.4%.

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CHART 4.8

Respondents’ reasons who haven’t take loans from canara bank –

INTERPRETATION:
From the above chart we can interpret that a greater number of customers are not
satisfied with the services of bank.

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TABLE 4.9

Number of respondents who got financed from other banks –

Opinion No of respondents Percentage (%)

YES 30 60

NO 15 30

MAYBE 5 10

Total 50 100

ANALYSIS:
The above table represents, number of respondents got financed from other banks.
As there 30 respondents got financed from other banks which is 60%, 15
respondents haven’t got financed from other banks which is 30% and 5
respondents who are partially responded on financing from other banks which is
10%.

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CHART 4.9

Number of respondents who got financed from other banks –

INTERPRETATION:
From above graph we study that the number of respondents who got financed by
other banks are more compared to remaining respondents.

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TABLE 4.10

Number of Respondents suggesting canara bank to new(or) upcoming

entrepreneurs –

Opinion No of respondents Percentage (%)

YES 20 40

NO 4 8

MAYBE 26 52

Total 50 100

ANALYSIS:
The above table represents the opinion of respondents who are willing suggest
canara bank for new(or) upcoming entrepreneurs. As there are 20 respondents
who are willing to suggest that is 40%, 4 respondents are not willing to suggest
that is 8% and 26 respondents are partly willing to suggest that is 52%.

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CHART 4.10

Number of Respondents suggesting canara bank to new(or) upcoming

entrepreneurs –

INTERPRETATION:
From the above graph we can interpret that respondent who are partly suggesting
are more compared to who are willing and not willing respondents.

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TABLE 4.11

Respondents’ opinion on services rendered by banks –

Services Least Neutral Important Most Total

important important

Internet 2 2 17 29 50
banking

Mobile 0 3 13 34 50
banking

NEFT 3 7 16 24 50

RTGS 5 7 15 23 50

Credit card 0 5 19 26 50
facility

ATMs 11 13 15 11 50

Debit card 1 4 27 18 50
facility

Cheque books 5 14 19 12 50

ANALYSIS:
The above table represents how greatly the banking services are important to the
respondents.

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CHART 4.11

Respondents’ opinion on services rendered by banks –

INTERPRETATION:

From the above graph we can study that how important banking services to
respondents. Here we can see that mobile banking is most important to
respondents compared to other services. but every enterprise needs the above all
services for business transactions.

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TABLE 4.12

Respondents rated canara bank financing their business –

Rating No of respondents Percentage (%)

(Lowest to Highest)

1 4 8

2 6 12

3 12 24

4 21 42

5 7 14

Total 50 100

ANALYSIS:
The above table represents, how much the respondents rate the canara bank
financing their business. As there are 4 respondents rated 1 which is 8% who
are not satisfied with financing from canara bank, 6 respondents rated 2 which
is 12%, 12 respondents rated 3 which is 24%, 21 respondents rated 4 which is
42%, 7 respondents rated 5 which is 14% who are fully satisfied with the canara
bank financing their business.

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CHART 4.12

Respondents rated canara bank financing their business –

INTERPRETATION:
From the above graph we can interpret those respondents who have rated canara
bank financing their business, the highest rating is 4 that we can infer from the
above graph.

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TABLE 4.13

Respondents’ opinion on interest rate of canara bank –

Opinion No of respondents Percentage (%)

YES 14 28

NO 10 20

MAYBE 26 52

Total 50 100

ANALYSIS:
The above table represents respondents’ opinion on interest rate of canara bank.
As there are 14 respondents which is 28% who are satisfied with the interest
rate of canara bank, 10respondents which is 20% who are not satisfied with the
interest rate and 26 respondents which is 52% who are partly satisfied with the
interest rate of canara bank.

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CHART 4.13

Respondents’ opinion on interest rate of canara bank –

INTERPRETATION:
From the above graph we can study that number of respondents who are partly
satisfied with interest rate of canara bank is more compared to other.

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TABLE 4.14

Respondent’s opinion on financing from banks will increase safety and

security for business –

Opinion No of respondents Percentage (%)

Strongly disagree 0 0

Disagree 4 8

Neutral 16 32

Agree 21 42

Strongly agree 9 18

Total 50 100

ANALYSIS:
The above table represents respondents’ opinion on financing from banks will
increase safety and security for business. As there are 9 respondents which is
18% who have strongly agreed, 21 respondents which is 42% have just agreed
with the point, 16 respondents which is 32% have neutral opinion on the point,
4 respondents which is 8% only have disagreed with that and no other
responded have strongly disagreed with the point.

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CHART 4.14

Respondent’s opinion on financing from banks will increase safety and

security for business –

INTERPRETATION:
From the above graph we can interpret that majority of respondents have agreed
with given point and has highest percentage compared to others.

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TABLE 4.15

Respondents’ opinion on rating credit facility provided by bank –

Opinions No of respondents Percentage (%)

Excellent 8 16

Very good 6 12

Good 27 54

Fair 8 16

Poor 1 2

Total 50 100

ANALYSIS:
The above table represents opinions of respondents on rating credit facility
provided by bank. As there are 8 respondents which is 16% rated excellent, 6
respondents which is 12% rated very good, 27 respondents which is 54% rated
good, 8 respondents which is 16% rated fair and only 1 respondent which is 2%
rated poor.

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CHART 4.15

Respondents’ opinion on rating credit facility provided by bank –

INTERPRETATION:
From the above chart we can study that the majority of respondents have good
opinion on credit facility provided by bank.

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TABLE 4.16

Respondents’ opinion on Recent innovation in banking reduces work and

saves time –

Opinion No of respondents Percentage (%)

YES 32 64

NO 1 2

MAYBE 17 34

Total 50 100

ANALYSIS:
The above table represents respondents’ opinion on innovation in banking
reduces work and saves time. As there are 32 respondents which is s 64% are
satisfied with the innovation, 1 respondent which is 2% only not satisfied with
the innovation and 17 respondents which is 34% are partially satisfied with the
recent innovations.

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CHART 4.16

Respondents’ opinion on Recent innovation in banking reduces work and

saves time –

INTERPRETATION:
From the above graph we can interpret that a greater number of respondents
have supported the recent innovation in banking which is 64%.

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TABLE 4.17

Respondents’ opinion on drawbacks in getting financial support from

banks –

Opinion No of respondents Percentage (%)

YES 14 20.8

NO 24 50

MAYBE 10 29.2

Total 48 100

INTERPRETATION:
The above table represents respondents’ opinion on drawbacks in getting
financial support from banks. As there are 14 respondents which is 20.8% have
feel drawbacks, 24 respondents which is 50% have not feel drawbacks, 10
respondents which is 29.2% have partially feel drawbacks.

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CHART 4.17

Respondents’ opinion on drawbacks in getting financial support from

banks –

INTERPRETATION:
From the above graph we can study that the number of respondents who feel
drawbacks were less compared to other.

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TABLE 4.18

Respondents’ opinion on canara bank financing emerging entrepreneurs –

Opinion No of respondents Percentage (%)

Strongly disagree 1 2

Disagree 4 8

Neutral 27 54

Agree 11 22

Strongly agree 7 14

Total 50 100

ANALYSIS:
The above table represents the opinion of respondents on financing emerging
entrepreneurs of canara bank. As there are 7 respondent who strongly agreed, 11
respondents just agreed, 27 respondents have neutral opinion, 4 respondents
have disagreed and 1 respondent had strongly disagreed on providing financial
support to emerging entrepreneurs from canara bank.

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CHART 4.18

Respondents’ opinion on canara bank financing emerging entrepreneurs –

INTERPRTATION:
From the above graph we understood that the respondents are neutrally
approved that canara bank financially support emerging entrepreneurs .

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CHAPTER-5
SUMMARY OF
FINDINGS AND
CONCLUSION

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Chapter 5
SUMMARY OF FINDINGS AND CONCLUSION
Findings:

This section of the research provides an overview of the entire research work, beginning with
a summary of the work from the first to the last chapter, the findings to be examined from
both a theoretical and empirical standpoint, the conclusion of this research work, and
recommendations made by the researcher as a means of providing a benchmark for future
research.

The purpose of this study is to reveal the role of commercial banks in financing emerging
entrepreneurs. According to the findings, canara bank shows different types of schemes and
innovation in there banking services which will help entrepreneurs business development and
had made a detailed study.

From the above research we found that canara bank has less priority by customers compared
to other banks because services provided by the bank were not so good and interest rate is
high when compared to other banks.

1. It is observed that, number of male respondents 39 are more as compared to female

respondents11.
2. It is observed that the age of respondents is between 20 years to 50 years.
3. It is observed that 44% of entrepreneurs are in business for more than 5 years.
4. It is observed that 30% of respondent’s turnover are more than Rs 1crore.
5. It is observed that 33 respondents are having canara bank account compared to 17
respondents having bank account with other banks.
6. It is observed that 52% of the respondents are satisfied with the services.
7. It is observed that 42% of respondents have obtained loan from canara bank.
8. It is observed that 42.9% of respondents are not satisfied with the services rendered
by bank.
9. It is observed that 60% of respondents have got financed by other banks.
10. It is observed that 40% of respondents are willing to suggest the canara bank to new
(or) upcoming entrepreneurs.

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11. It is observed that the services provided by the bank like internet banking, mobile
banking, NEFT, RTGS, credit card facility, ATMs, debit card facility are beneficial to
majority of respondents.
12. It is observed that 42% of respondents rated 4 for financing their business.
13. It is observed that a smaller number that is 28% of respondents are satisfied with the
canara bank interest rate.
14. It is observed that 42% of respondents agreed that financing from banks will increase
safety and security for the business.
15. It is observed that 54% of respondents rated credit facility of bank as good.
16. It is observed that 64% of respondents agreed that recent innovation in banking
reduces work and saves time.
17. It is observed that 20.8% of respondents experienced drawback in getting financial
support from bank.
18. It is observed that 54% of respondents have neutrally approved for canara bank
providing a good financial support for emerging entrepreneurs.

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Conclusion

The complete topic is about commercial banks financing emerging entrepreneurs with
reference to canara bank. Banks plays key role in financing businesses by providing loans
and advances to business. Banks will help new entrepreneur for formation of capital in form
of loans and credit facilities for certain period of time.

From the above research we can conclude that the respondents are entrepreneurs having an
account in canara bank are not interested in getting financed by canara bank. The main reason
that entrepreneurs are not selecting canara bank because the services provided by the bank are
not satisfied.

From the analysis we can get to know that a greater number of respondents have agreed
that financing from banks will have safety and security to the businesses and it will help
businesses in tax deduction.

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CHAPTER-6
SUGGESTIONS

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Chapter 6

SUGGESTIONS

1. The bank must improve their rendering services to customers and make
friendly relation with them.
2. Advertising is most important factor for any sector that helps to identify
any type of sector and helps in economic development of the bank.
3. Make more marketing strategies that will help in boosting up economic
development of bank.
4. Make special schemes for Businesses that will attract new entrepreneurs to
get financed from banks.
5. Get more innovative services which can help in reduce work and saves
time.
6. Try to provide good credit facilities to the entrepreneurs that helps them to
make good profits.
7. Encourage new entrepreneurs and investing in new business helps to
growth in economic structure of bank.

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ANNEXURES
AND
APPENDICES

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APPENDICES AND ANNEXURES

The following are list of Questionnaires that are asked in process of sampling for responses
from entrepreneurs.

1. Name of the company?

2. Type of business?

3. What is your gender?

A. Female
B. Male
C. Other

4. Please enter your age?

5. How long have you been in the business?

A. Less than 1 year

B. 1-3 years
C. 3-5 years
D. More than 5 years

6. The size of business? (turnover)

A. Less than 20 lakhs
B. 20 lakhs-50 lakhs
C. 50 lakhs-1croreunder
D. More than 1crore

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7. Number of employees in your business?

8. Do you have an account in canara bank?

A. Yes
B. No

9. Do you like the services provided by canara bank?

A. Yes
B. No
C. Maybe

10. Have you taken a business loan as an entrepreneur from canara bank?
A. Yes
B. No
C. Maybe

11. If no, what is the reason?

A. Under age
B. Rate of interest is more for borrowed amount
C. Services rendered are not satisfying
D. Other

12. Have ever got financed by other banks?

A. Yes
B. No
C. Maybe

13. As an entrepreneur do u suggest canara bank for new (or) upcoming entrepreneurs?
A. Yes
B. No
C. Maybe

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14. Give us your opinion on financial services rendered by bank?

SERVICES/OPINION Least Neutral Important Most

important important

Internet banking

Mobile banking

NEFT

RTGS

Credit card facility

ATMs

Debit card facility

Cheque book

15. How much do you rate canara bank financing your business?
Lowest 1 2 3 4 5 Highest

16. Are you satisfied with the interest rate of canara bank?
A. Yes
B. No
C. Maybe
17. Financing from banks will increase safety and security for business?
A. Strongly disagree
B. Disagree
C. Neutral
D. Agree
E. Strongly agree

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18. How do you rate the credit facility provided by bank?

A. Excellent
B. Very good
C. Good
D. Fair
E. Poor

19. Has the recent innovation in banking reduces your work and saves time?
A. Yes
B. No
C. Maybe

20. Have you felt any drawbacks in getting financial support from bank?
A. Yes
B. No
C. Maybe

21. Canara bank provides a good financial support for emerging entrepreneurs?
A. Strongly disagree
B. Disagree
C. Neutral
D. Agree
E. Strongly agree

22. As an entrepreneur what is your suggestion that can be helpful for financing emerging
entrepreneurs?

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Canara bank make financing the entrepreneurs like venture Capitalist by following steps

1. Develop product to prototype.

2. Funding for product development.
3. Funding to accelerate product & sales.
4. Funding profitable business for growth.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

WEBLIOGRAPHY
i. https://canarabank.com
ii. https://www.wishfin.com/business-loan/canara-bank-business-loan
iii. https://www.ibef.org/industry/banking-india.aspx
iv. https://www.google.com/search?q=emerging+enterprise+meaning&rlz=1
C1VDKB_enIN959IN959&oq=emer&aqs=chrome.2.69i59l3j69i57j0i20i
263i433j0i433j69i60l2.4685j1j7&sourceid=chrome&ie=UTF-8
v. https://www.growthink.com/content/what-emerging-company
vi. https://www.slideshare.net/
vii. https://www.marketing91.com
viii. https://www.deal4loans.com/loans/loan/canara-bank-business-loan-
interest-rates-eligibility-emi-calculator
ix. https://www.scribd.com/document/84111597/organization-study-on-
canara-bank
x. https://www.economicsdiscussion.net/banks/nationalized-banks/9-major-
problems-faced-by-indias-nationalized-banks/12927

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