OPERATIONS OF THE BANK: Generally the bank carries its operations relating to various fields.

The various accounting practices, investment policies and procedures, audit practices and maintenance of various financial statements can be explained under four main heads. These are the four main areas in which the whole business of Mahesh Bank is structured it includes:

Personal Banking Open a Saving Account No Frills SB Account Money Transfer Facility Deposits Safe Deposit Lockers

Business Banking Current Account Credit Facilities (Loans) RTGS Foreign Exchange Facility

Deposits Deposit Schemes Interest Rates on Deposits NRE Interest Rates

Loans Loan Schemes Interest Rates on Loans Fair practice in lendings

But the Cash management is all about how well the cash inflows and cash outflows are managed. And the Inflows would be the various deposits and investments with banks. Outflows would be the various types of loans granted by banks. 1.Inflows with the bank: It is amount which are deposited with the bank. The various forms of deposits and investments with bank would be: a. Deposit Schemes b. Interest Rates on Deposits c. NRE Interest Rates a. Deposit schemes: Mahesh Bank offers different deposit schemes with lucrative Interest Rates.

Mahesh Multiplier Deposit Scheme (MMD): A Scheme with interest on interest (compounded at quarterly rests). A wise investment scheme with multiplied benefits and with higher returns.

Fixed Deposits: Deposits are accepted ranging from 30 days to 10 years and the interest is paid at regular intervals (monthly/quarterly/half yearly) at an attractive rate of interest.

Mahesh Lakhpati Yojana: Under this scheme, you can deposit every month a specified amount for a specified period in order to receive a minimum of Rs. 1.00 lakh on the date of maturity. The following table provides the details of amounts to be deposited every month, interest rates, maturity period under the two categories i.e., general and senior citizen.

PERIOD

GENERAL

SENIOR CITIZENS

In Months Interest Rate % Deposit every month (Rs.) Maturity Value Rs. Months 15 24 36 39 48 60 72

Int.rate(%) D/ M (Rs.) 9.50 9.50 10.25 9.75 9.75 9.75 9.50 6259 3773 2368 2175 1701 1293 1031

MV

% 10.00 10.00 10.75 10.25 10.25 10.25 10.00

D/M 6238 3754 2349 2157 1683 1275 1014

M/V 100002 100021 100009 100029 100006 100000 100041

100006 100002 100026 100005 100010 100062 100079

Mahesh Automatic Renewal Scheme (MARS): Deposits are automatically renewed for every 30 days without submitting your deposit receipt. Fetches you good returns for short term duration.

Recurring Deposits (RD): Small regular monthly savings that grow into a lumpsum amount. Suitable to salaried employees and monthly earners.

Mahesh Tax Saver Fixed Deposit & Mahesh Tax Saver Multiplier Deposit Scheme: Invest the amount under any of these schemes which provides relief from Income-tax payments. Schemes regulated as per Section 80C of the I.T.Act, 1961.

Mahesh Cash Certificate(MCC): A small deposit made today grows into a lumpsum on maturity. Even an odd figures can become a sizeable amount on maturity.

Mahesh Mangal Nidhi (MMN): A rate combination with both the features of Recurring Deposit and Cash Certificate. Investing the amount at monthly intervals for a specific period and tacit waiting will make the owner of a sizeable amount.

b. Interest Rate On Deposits: Domestic Deposits (With Effect from 10-5-2012) S.No. Slab/Category Rate of Interest Other than Sr. Citizens Savings Deposits TERM DEPOSITS 1. 2. 3. 4. 5. 6. 7. 30 Days to 90 Days 91 Days to 180 Days 181 Days to 1 Year Above 1 Year & upto 2 years Above 2 Year & upto 3 Years Above 3 Years & upto 5 Years Above 5 Years & upto 10 Years TAX SAVER SCHEME: 8. 5 Years & Above 9.50% 10.00% 6.00% 7.00% 8.00% 9.25% 9.75% 9.50% 9.00% 6.50% 7.50% 8.50% 9.75% 10.25% 10.00% 9.50% 4.00% Sr. Citizens 4.00%

Based on market scenario, rates may be offered lesser or more than the above revised rates for deposits of Rs.15.00 lacs and above as per the decision taken by the Competent Authority from time to time.

c. Interest rates on NRE deposits: With effect from 10-5-2012 S.No. 1. 2. 3. 4. 5. Slab/Category Savings Bank Account Above 1 Year and to 2 Years Above 2 Years and to 3 Years Above 3 Years and to 5 years Above 5 Years Rate of Interest 4.00% 9.25% 9.75% 9.50% 9.00%

2.Outflows with banks: It is amount which are granted by the way of loan to the customers by the bank. The various forms of loans which are provided by the bank would be: a. Loan Schemes b. Interest Rates on Loans c. Fair practice in lendings a. Loan schemes: Mahesh Bank offers various credit facilities suiting the needs of the customers under different schemes: o Mahesh Shiksha Loan: Mahesh Shiksha Loan for deserving/meritorious students for pursuing higher studies in India / Abroad. Eligibility : Indian Nationals within the area of operation of the Bank. Quantum : For Studies in India : Max. Rs.10.00 Lakhs For Studies in Abroad : Max. Rs.20.00 Lakhs Security : Primary : Minimum 150% of the loan Collateral : Personal guarantee of Parent(s); Third Party; Owner of the Property. Repayment Period : Maximum 5 years.

Repayment Mode : PDCs issued/standing instructions to debit their savings account with us, by the parent of the applicant or Third Party. Courses covered : In India Professional Graduate/Post Graduate Courses Offered by prestigious/reputed institutions. Abroad Graduate/Post Graduate Courses. o Gold Loan:

6 Months scheme (Repayable in Two Equis) - Rs. 1900 per gram @ 16% 12 months bullet payment (max. Rs. 1.00 lac per borrower) - Rs. 1900 per gram @ 16%

o Vehicle loan:

For 2 Wheelers upto 70% of cost of Vehicle For 3 Wheelers 90% of cost of Vehicle For 4 Wheelers upto 75% of cost of Vehicle

o Customer loans:

For Purchase of Consumer durables & Household articles (60% of the cost) For Purchase of Computer (50% of the cost)

o Mahesh Banks NSC/KVP Loans/OD Facility:

Upto 60% of face value of NSCs Upto 50% of face value of KVPs Spot Sanction (Upto 70% of Face Value) least formalities.

o Housing loans:

1. For construction of House/Flat. 2. For purchase of House/Flat. 3. For renovation of House/Flat. 4. For purchase of Open plot for House Construction. 5. Quantum of loan-up to Rs.50 lakhs. o Loans For Business: 1. Cash Credits against stocks and Book Debts. 2. Key Cash Credit against pledge of Stocks / Warehouse or Cold Storage receipts. 3. Overdraft against property. o Industrial Finance: Working Capital Facility

O.C.C against stocks. O.C.C against Book Debts. Bill Discounting / Bill drawn under L.C. Discounting. Adhoc Limit for Seasonal Industries. O.D. against mortgage of property.

Term Loan

For acquisition of Machinery and Assets. For Construction of buildings.

o Mahesh Easy Loan For Professionals:

For purchase of medical equipments, books etc. Modernization/ improvement of clinic/ labs/ office. Pursuing higher studies and to meet urgent contigencies. Nature of facilility OD/Loan.

Repayment Period : a) for Loan - maximum period of 60months.

b) for OD - 1 Year renewable thereafter. Collateral: upto 2 lakhs -NIL, above 2 lakhs - 100% of sanctioned amount.

Mode of repayment: for Loan - post dated cheques.

o GOD-Gold Overdraft: with effect from 10.11.2011 Gold Overdraft with DP of less than Rs. 25 lakhs Rs. 2000 per gram - Interest : 15% Gold overdraft with DP of Rs 25 lakhs and above Rs. 2000 per gram - Interest : 14%

o CAP-Credit Against Property: Interest Rate : 16% to 18%

b. Interest rate on loans and advances: Interest Rates on Loans & Advances LOANS & ADVANCES with effect from 1-08-2011

Category

Rate of Interest* p.a.

Educational Loans Upto Rs. 5.00 lacs Above Rs. 5.00 lacs to 20.00 lacs 12.00% 13.50%

Gold Loans (w.e.f. 10-11-2011) 6 Months Scheme (repayable in two Equal installments) 12 months (Bullet payment) Gold Overdraft with DP of less than Rs. 25.00 lakhs Gold Overdraft with DP of Rs. 25.00 lakhs & above 16.00% 16.00% 15.00% 14.00%

KCC against Warehouse Receipts

14.00%

Against RBI Relief Bonds

14.50%

Against NSC'S , KVPs

14.50%

Advances against Rent Receivables

14.50%

Housing Loans

15.00%

Advances to Flour Mills

15.00%

Mahesh Easy Loan for Professionals

15.00%

Advances against Shares

12.50%

Vehicle Loans (Against Corporate Guarantee 14.00%)

15.00%

Mortgage Loans / Overdraft against immovable properties 16.50% for Business Development

T/L & W/C for Industries and W/C for Traders Below Rs. 5.00 lacs Rs. 5.00 lacs & above 15.50% 14.50%

c. Fair practice in lending: The Fair Practices Code covers the following areas:

Application for loans and their processing. Loan appraisal and terms/conditions. Disbursement of loans including changes in terms and conditions. Post disbursement supervision. Other general provisions.

The guidelines are applicable in respect of all the borrowers, irrespective of the quantum of credit facility being enjoyed by them.

A. Application for loans and their processing a. The applicant will be given, along with loan application, an annexure containing a list of various charges/fee viz. processing fee and the period for which it is levied (in case of limits), valuation charges, legal opinion fee, stamping charges, insurance, penalty for prepayment, foreclosure charges, commitment charges (i.e. minimum level of limit utilisation, applicable rate of interest and period for which the limit utilisation is reckoned etc.), penal interest, share linking etc., expenses/fee that are refundable (alongwith a note that all or any of the above charges are liable to change with/without prior notice). b. An acknowledgement for receipt of loan applications will be given and the time within which the loan application is disposed off, will be mentioned as under: (Rs. In lakhs)

Quantum of loan applied < & = 0.50 >0.50&<= 2.00 >2.00 to 5.00 >5.00to 10.00 >10.00to 200.00 >200.00 to 500.00

Time limit for sanctioning/ rejecting the proposal 1 Week 10 days 2 Weeks 3 Weeks 6 Weeks 6 Weeks

The above time frame is subject to i. Submission of all relevant information & enclosures by the applicant ii. Obtention of legal opinion & valuation reports.

iii. Administrative exigencies c. The loan application will be verified within a reasonable time and the applicant will be informed about the additional requirements for processing the loan application either by the branch and/or Head Office as the case may be. d. The reasons for rejecting the loan application will be communicated to the borrower in writing within the time stipulated for disposal of application. B. Loan appraisal and terms/conditions: a. The credit assessment will be proper as based on the guidelines laid down in the credit policy as well as sound lending principles. Margin and security stipulation will not be used as a substitute for due diligence on creditworthiness of the borrower. b. A copy of the terms and conditions to the sanction will be given to the borrower(s) and guarantor(s) and an acknowledgement, followed by signature, will be obtained as under: I have gone through the terms and conditions to the sanction and having fully understood and/ being explained about the same, I hereby accept the terms and conditions to the credit facility sanctioned to me/us. c. All the terms and conditions and other caveats governing the credit facilities sanctioned will be put in writing and given to the borrower after duly signed by the authorized official of the branch. d. A copy of loan agreement along with copies of enclosures will be furnished to the borrower and/or guarantor on specific request of the borrower. e. The terms and conditions to the sanction will contain the under mentioned aspects. o Drawings beyond sanctioned limits/DP fixed will not be permitted without prior sanction.

o Cheques issued for purposes other than specifically agreed to, are liable to be returned unpaid irrespective of balance available in the account. o The borrower will submit renewal proposal with required information atleast one month before the due date. o If limits are not renewed before due date, penal interest will be charged @ 2% over and above the applicable rate of interest. o After expiry of three months from due date of renewal, issue of cheque books will be stopped immediately. o Operations will not be allowed in the account after expiry of 6 months from the date of validity and necessary action will be initiated to recover our dues, unless otherwise permitted by Head Office. o Growth in business etc. will not automatically put the Bank under an obligation to meet further requirement of the borrower without proper review/assessment of credit limits. f. In case of lending under consortium arrangement, if the bank is participating then appraisal of proposal will be done within the time frame stipulated at Sno. Ab above. C. Disbursement of loans including changes in terms and conditions. a. All the loans and advances will be disbursed in time, subject to compliance of terms and conditions to the sanction. b. The information regarding change in terms and conditions including interest rates, service charges etc. will be placed in the notice board in the main banking hall and also in the web-site. If the change is likely to affect few borrowers or specific category of borrowers then they will be informed in writing. c. Interest rate changes will be effected prospectively.

D. Post disbursement supervision: a. The post disbursement supervision will take into account the genuine difficulties that the borrower might be facing in utilizing the funds for the purpose he borrowed. b. Before taking decision to recall/accelerate payment under the agreement, procedure laid down in the Credit/Recovery policy will be followed. c. All the securities will be released on receiving payment/ realization of loan subject to any legitimate right of lien/set-off that the bank may have against the borrower for any other claim. d. In the event bank intends to exercise bankers right of lien or set-off then the borrower will be informed in writing detailing the remaining claims and the documents under which the bank is entitled to retain the securities till the relevant claim(s) is/are settled. E. General : a. The bank will restrain from interfering in the affairs of the borrower excluding to the extent provided in the terms and conditions to the sanction and to the extent of safeguarding its exposure. b. Bank will not discriminate on the grounds of sex, caste and religion in the matter of lending except to the extent laid down by the RBI for priority and weaker section lending. c. For recoveries bank will follow the procedure laid down in the Credit/Recovery policy. d. In case of receipt of a request for transfer of loan a/c either from the borrower or from another bank, by way of take-over, the consent or objections of the bank, if any, will be conveyed within a reasonable time and in any case not later than 21 days from the date of receipt of request, unless the matter requires to be placed before the Loans Committee/Board in which case, the responding time depends upon the date of the meeting.