PROJECT REPORT

Title of Project

A Dissertation/Project submitted to the Rama Devi Women's University

in partial fulfilmentof the requirement for the Degree of
Master of Commerce / Bachelor Of Commerce
By
Your Name
Roll No-
Session- 2023

Under the Guidance of

Guide Name
Designaton
P.G Department of Commerce, Rama Devi Women's University

Post Graduate Department of

Commerce Rama Devi Women's
University Bhubaneswar, Odisha 2023
 DECLARATION

I do hereby declare that the Project report entitled “Project Title” submitted by me
as a partial fulfilment of the requirements for the award of the degree of Master of
Commerce, in the course curriculum. It is a record of original dissertation work
carried out by me, under the guidance and supervision of
…………………………...
The information has been collected from genuine & authentic sources. The work
has not been submitted for the award of any other degree elsewhere in full or part.

Date:
Place:
NAME
 CERTIFICATE
This is to certify that the thesis entitled “ Project Title”, is a record bonafid research work
done by Student Name under my guidance and supervision. It embodies the results of her
original contribution. The project has reached the standard of fulfilling the requirement of
regulation regarding to Master of Commerce. No part of his project has been submitted to
any institution for the award of any degree.

I wish all the best and success in future endeavors.

Guide Name
Post Graduate Department of
Commerce Rama Devi Women's
University
 ACKNOWLEDGEMENT

“The satisfaction Euphoria that accompanies the successful completion of any work would be
incomplete unless we mention the name of the person, who made it possible, whose constant
guidance and encouragement served as a beckon of light and crowned our efforts with
success.” I consider it a privilege to express through the pages of this report, a few words of
gratitude and gratitude and respect to those who guided and inspired in the completion of this
project of “A STUDY OF FINANCIAL SUPPORT OF BANKS TO MICRO SMALL
AND MEDIUM ENTERPRISE”.

Hence with a sense of profound humility, I would like to express my heartfelt indebtedness and
deep sense of gratitude to my guide, HOD Prabodha Kumar Hota and all faculty of P.G.
Department of Commerce, Utkal University for their guidance and constant supervision as well
as for providing necessary information regarding the project and his constant support for
completing the project.
I first extend my sincere gratitude to Manager of State bank of India, Uttarkul Branch and
IDBI Bilahat Branch for their helps in providing necessary information.
Finally, I thank all those who have directly or indirectly helped me in my project. I express my
Profound thanks to all my teacher as well as friend who are the constant source of
encouragement for me.
.
Date:

Place: Student Name

 Contents
I. Title page
II. Declaration
III. Certificate
IV.Acknowledgement
CHAPTER 1- INTRODUCTION
1.1 Introduction
1.2 Need of the study
1.3 Problem Statement
1.4 Chapter Plan

CHAPTER 2- LITERATURE REVIEW

2.1 Introduction
2.2 Literature review
2.3 Research gap
CHAPTER 3- RESEARCH METHODOLOGY
3.1 Introduction
3.2 Scope of the study
3.3 Research objectives
3.4 Research hypotheses
3.5 Relevance of the study
3.6 Research design
3.7 Area of study
3.8 Sample frame
3.9 Sources of data
3.10 Statistical tools used for data analysis
3.11 Limitation of the study
3.12 Summary of research methodology
CHAPTER 4- ANALYSIS AND INTERPRETATION OF DATA
4.1 Introduction
4.2 Data analysis and interpretation
4.3 Testing of hypotheses

CHAPTER 5- FINDINGS, CONCLUSION AND SUGGESTIONS

5.1- Introduction
5.2- Summary
5.3- Major findings
5.4- Suggestions
5.5- Conclusion

Bibliography
 PROBLEM STATEMENT

MSME is facing problems like processing formalities, variations

in the rate of interest, size of loan, processing time, and
repayment conditions etc., followed by banks and financial
institutions. These problems also affect the smooth flow of
credit to this sector. In this context, the financial support of
banks and financial institutions to micro, small and medium
enterprises has been identified as the problem for this study.
 CHAPTERIZATION OF THE STUDY
• CHAPTER 1- INTRODUCTION- Chapter one introduced the key
factor of the study like Micro small and medium enterprises, bank,
history of state bank of India and IDBI, role of state bank of India and
IDBI for the promotion of MSME. This chapter also outline the
structure of the present study that how the State Bank of India and
played an important role for the development of MSME.
• CHAPTER 2- LITERATURE REVIEW- The second chapter deals
with review of literature on entrepreneurship development, research
gap, and the summary of review of literature.
• CHAPTER 3- RESEARCH METHODOLOGY- The fourth chapter
present the relevance and scope of the study, research design, study
area, sample frame, source of data collection and various statistical
tools and technique followed for the study and lastly the summary of
research methodology.
• CHAPTER - DATA ANALYSIS AND INTERPRETATION- The fourth
chapter contain the analysis of collected data and their interpretation.
• CHAPTER 6- FINDINGS AND CONCLUSION- The fifth chapter
concludes the study with findings, conclusions, suggestions and scope
for further research.
 LITERATURE REVIEW
This is an attempt to review the available literature related to the
research problem. In this context, the researcher tries to review
various research papers, books, journals and other available
literature to understand the issues related to the research problem.
Review of literature helps the researcher to undergo the work done on
the particular topic before the proposed work. A detailed and thorough
literature review helps in making an inspirational base for the
substantial, meaningful research. It is necessary for the understanding
and development of conceptual content in which the problem fits.
Jahur et al. (2014) studied the determinants of stock market and their
performance in Bangladesh. The study used secondary data sources, and
applied descriptive measures and linear regression model to analyse the data.
The study found that all macro-economic variables like Interest Rate and
Exchange Rate, Consumer Price Index have significant impact on stock
market performance.
Mehwish (2013) conducted a study on Determinants of Stock Market
Performance in Pakistan. The data was analysed quantitatively through
regression analysis using E– views. With the use of time series data the study
established a negative relationship between stock market performance and
real interest rate, whereas the banking sector development has no significant
influence on stock market performance.
 Research Gap
After conducting the comprehensive review of literature, the crucial
research gap were found. To a date a good number of studies have been
done in different aspects of small sector scale. Therefore, it is pre-
requisite for extensive study of the underdeveloped area for the growth
and development of MSME. It is also revealed from the above review of
literature that although loads of studies have been done on financial
organizations, comparison between private and public sector banks and
evaluative study on Indian banks and their role in the development of
small and medium enterprise,The above literature review indicates that
few studies has been done to assess the entrepreneurial scenario of
people and the impact of MSME on socio-economic condition of people
 INTRODUCTION
Research methodology is concerned about a research problem and it
includes what is the purpose to undertake the particular study,
method of defining the research problems, what is the way of
formulating the hypothesis, what is the kind of data has been used in
study and the data collection method and to know why a particular
technique is used to analyze the data.
Research methodology basically involves precise techniques that are
used in research process to gather and assess the data. It describes the
instruments that is used to assembles important information in
research work.
The chapter shows the description of the methodology comprising of
scope, objectives, hypotheses of the study, research design, data
collection method and statistical tools of data analysis
 TABLE NO. 4.1
Beneficiaries Loan Accounts in SBI Uttarkul Branch

Year No of Loan A/c Growth Rate (%)

2014-15 22 -
2015-16 20 (9.00)
2016-17 28 40
2017-18 26 (7.1)
2018-19 32 23.07
2019-20 18 (43.75)
2020-21 16 (11.11)
Total 162

Source: State Bank of India, Uttarkul branch,

 TABLE NO. 4.2
EXPECTED FREQUENCIES

LOAN SANCTIONED LOAN SANCTIONED

YEAR TO TOSERVICE
MANUFACTURING ENTERPRISES
ENTERPRISES (IN (IN %)
%)
2014-15 4.5 4.5
2015-16 7.6 7.6
2016-17 11.85 11.85
2017-18 24.4 24.4
2018-19 21.25 21.25
2019-20 16.4 16.4
2020-21 13.95 13.95

Source: Authors’ own collection.

Source: self compliance
Table 4.2 shows the observed value of loan sanctioned to manufacturing and
service enterprises which is taken from the data and Table 4.3 reveals the
expected value or calculated value of loan sanctioned to manufacturing and
service enterprises in percentage. Expected value is calculated by multiplying
row total of observed value with column total of observed value divided by grand
total of observed value. In the year 2014-15 the expected value of loan sanctioned
to manufacturing and service enterprises are 4.5. In the year 2015-16 the expected
frequencies of sanctioning loan to both the enterprises are 7.6. Then in the year
2016- 17 the expected value of loan sanctioned to manufacturing and service
enterprises are 11.85. In 2017-18 the expected value of loan sanctioned to both
the enterprises are 24.4. Thereafter in the year 2018-19 the expected value of
sanctioning loan to both these enterprises are 21.25. Then in the year 2019-20 the
expected value of loan given to manufacturing and service enterprises are 16.4.
Then in the last year of data analysis which is 2020-21, where the expected value
of loan sanctioned to both manufacturing and service enterprises are 13.95 which
is the highest of all the year. Now the aim is to find out how much deviation is
there between the observed table and expected table. That is found out by using a
simple formula. So, for that it is needed to prepare another table which state the
difference between observed frequencies and expected frequencies.
REFERENCES
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Biswas, A. (2014) Financing constraints for MSME sectors. International Journal of

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Chandraiah, M. and Vani, R. (2014) The prospects and problems of MSME’s sector in
India and analytical study. International Journal of Business and management invention.
Vol-3, Issue-8.

Mirdamadi, A. and Ramesha, K (2014) Bank finance to MSMEs in India. A Discussion

on pre and post MSMED Act. International journal of social science and management,
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Ponniah, V.M. and Mohan, A. (2012) Receivable management strategy by MSME
entrepreneurs: A study of MSME in Tamilnadu. International Journal of Management, Vol-
2, issue-2. pp.144-153.

Suganthi, B. (2014) Impact of Institutional finance on MSME. International Journal of

Research in computer application and management. Vol-4, Issue-3.

Zanjurne, P. (2018) Growth and future prospect of MSME in India. International Journal
of advanced engineering management and science. Vol-4, Issue-8.