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INTRODUCTION
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INTRODUCTION
The modern concepts of marketing realized that measuring consumer needs or
behavior was not enough. CONSUMER SATISFICATION should be the core and then the
correct perception on which marketing policies of our organization should be built.
Management must think of itself not as producing products but as providing customer
creating value satisfaction.
Customer satisfaction has a vital role in sustaining and improving hold on the market.
Brief descriptions about the various measures that are needed to improve customer orientation
have also been dealt with.
Consider the fact todays customer face a plenitude of products in every category.
Customer will be having high and raising expectation of quality and service. In the face of their
vast choices, the customer will gravitate to the offering that the best meet their individual needs
and expectation. They will buy one of the bases of their perception value.Therefore it is not surprising that todays winning companies are those succeed best in
satisfying indeed delighting their target customer. They pay extreme attention to quality and
service to meeting and even exceeding customer expectation. They complete vigorously and at
the co-operated smartly with their strategy partners in their supply and distribution chain. They
pursue efficiently and yet are responsible and flexible.
Customer satisfaction is the outcome felt by buyers who have expectation. Customers are
satisfied when their expectation are met and delighted when their expectations are exceeded.
Satisfied customers remain loyal longer, buy more, and are less sensitive and talk favorableabout the company. From this it is clear that the satisfied customer will be less sensitive towards
the fluctuating price and offensive marketing typically cost more than defensive marketing,
because it requires much effort and cost to induce satisfied customers to switch away from their
current suppliers. We should also consider the fact that the cost of attracting a new customer
may be five times the cost of keeping the current customer happy. Therefore the companies are
intending in developing stronger bones and loyalty with their customers.
DEFINITION OF CUSTOMER SATISFACTION
Customer satisfaction refers to the extent to which customers are happy with the products
and services provided by a business. Customer satisfaction levels can be measured using survey
techniques and questionnaires
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DEFINITIONS:
Definition 1: Customer satisfaction is equivalent to making sure that product and service
performance meets customer expectations.
Definition 2: Customer satisfaction is the perception of the customer that the outcome of a
business transaction is equal to or greater than his/her expectation.
Definition 3: Customer satisfaction occurs when acquisition of products and/or services
provides a minimum negative departure from expectations when compared with other
acquisitions. Gaining high levels of customer satisfaction is very important to a business because
satisfaction customers are most likely to be loyal and to make repeat orders and to use a wide
range of services offered by a business There are many factors which lead in high levels of
customer satisfaction including. Products and services which are customer focused and henceprovide high levels of value for money. What is clear about customer satisfaction is that
customers are most likely to appreciate the goods and services that they buy if they are made to
feel special. This occurs when they feel that the products and services that they buy have been
specially produced for them or for people like them.
BENEFITS OF CUSTOMER SATISFACTION
The importance of customer satisfaction and support is increasingly becoming a vital business
issue as organization realize the benefits of Customer Relationship Management (CRM) for
providing effective customer service. Professionals working within customer focused business
or those running call centres or help desks, need to keep informed about the latest customer
satisfaction techniques for running a valuable customer service function. From small customer
service departments to large call centres, the importance of developing a valued relationship
with customers using CRM is essential to support customer and long-term business growth.
What Do Customers Want?Before we begin to create tools to measure the level of satisfaction, it is important to develop a
clear understanding of what exactly the customer wants. We need to know what our customers
expect from the products and services we provide.
Customer expectations have two types
y Expressed
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y Implied
Expressed Customer Expectations are those requirements that are written down in the contract
and agreed upon by both parties for example, product specifications and delivery requirements.
Suppliers performance against these requirements is most of the items directly measurable.
Implied Customer Expectations are not written or spoken but are the ones the customer wouldexpect the supplier to meet nevertheless. For example, a customer would expect the service
representative who calls on him to be knowledgeable and competent to solve a problem on the
spot. There are many reasons why customer expectations are likely to change overtime. Process
improvements, advent of new technology, changes in customers priorities, improved quality of
service provided by competitors are just a few examples. The customer is always right.
Suppliers job is to provide the customer what he/she wants, when he/she wants it. Customer
satisfaction is customers perception that a supplier has met or exceeded their expectations.
3.3 WHAT CONSTITUTES SATISFACTION?
We cannot create customer satisfaction just by meeting customers requirements fully because
these have to be met in any case. However failing short is certain to create dissatisfaction
Major Attributes of customer satisfaction in banking industry
Can be summarized as:
Product quality
Premium Outflow
Return on Investment
Services
Responsiveness and ability to resolve complaints and reject reports.
Overall communication, accessibility and attitude.
WHAT ARE THE TOOLS?
Customer expectations can be identified using various methods such as:
Periodic contract reviews
Market research
Telephonic interviews
Personal visits
Warranty records
Informal discussions
Satisfaction surveys
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Depending upon the customer base and available resources, we can choose a method that is most
effective in measuring the customers perceptions. The purpose of the exercise is to identify
priorities for improvements. We must develop a method or combination of methods that helps to
continually improve service.
3.4 CUSTOMER SATISFACTION SURVEYS
Formal survey has emerged as by far the best method of periodically the customer satisfaction.
The survey are not marketing tools but an informationgaining tool. Enough homework needs
to be before embarking on the actual survey. This includes:
Defining Objectives of the Survey
Design Survey approach
Develop questionnaires and forms
Administer Survey (Email, Telephone or Post)
Method of compiling data and analysing the findings
Format of the report to present the findings
There is no point in asking irrelevant questions on a customer satisfaction questionnaire. The
basic purpose is to find out what we are doing right or wrong. Where is the scope for
improvement, where do we stand vis--vis other suppliers. How we can serve the customer
better?
A customer satisfaction measurement survey should at least
Identify the following objectives:
Importance to customers (Customers priorities)
Customers perception of suppliers performance
Your performance relative to customers priorities.
Priorities for improvement
Survey forms should be easy to fill out with minimum amount of time and efforts on customers
part. They should be designed to actively encourage the customer to complete the questions. Yet
they must provide accurate data should also be sufficiently reliable for management decision
making. This can be achieved by incorporating objective type questions where customer has to
rate on scale of say 1 to 10. For repeated surveys, you could provide the rating that was
previously accorded by the customer. This works like a reference point for the customer.
Space should always be provided for the customers own opinions this enables them to state any
additional requirements or report any shortcomings that are not covered by the objective
questions. Normally, we deal various personnel at various levels in the customers
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organizationthe buyer, user, receiving inspector, finance and purchase person etc. surveying a
number of respondents for each customer gives a complete perspective of customer satisfaction.
It may be necessary to device a different questionnaire for each of them. Respondents must be
provided a way to express the importance they attach to various survey parameters. Respondents
should be asked to give a weighting factor, again on a rating scale of say, 1 to 10, for each
requirement. This gives a better indication of relative importance of each parameter towards
overall customer satisfaction and makes it easier for suppliers to prioritize their action plans by
comparing the performance rating (scores) with importance rating (weighing).
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NEED FOR THE STUDY
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NEED FOR THE STUDY
To identify the satisfaction level of customer towards different types of service attributes,
by identifying their critical factors.
To study about the bank about their customized products and services, according to the
consumers needed.
To study the experience and expectations of the existing customers.
To study to improve the current standards of services.
To study the scope of introducing new types of services.
To study about the business tactics followed to stand against the competitors.
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STATEMENT OF THE
PROBLEM
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STATEMENT OF THE PROBLEM
This Study will help us to understand the consumers satisfaction about banking services and
products. This study will help banks to Understand, how a consumer selects, organizes and
interprets the Quality of service and product offered by banks. The market is more aware and
realistic about investment and returns From financial products. In this background this study
tries to analyze The customer satisfaction towards banking services in general and IOB In
particular.
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INDUSTRY PROFILE
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INTRODUCTION TO BANKING IN INDIA
The banking section will navigate through all the aspects of the Banking System in India. It will
discuss upon the matters with the birth of the banking concept in the country to new players
adding their names in the industry in coming few years.
The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and
top 20 banks like IDBI, HSBC, ICICI, ABN AMRO,etc. has been well defined under three
separate heads with one page dedicated to each bank.
However, in the introduction part of the entire banking cosmos, the past has been well explained
under three different heads namely:
History of Banking in India
Nationalization of Banks in India
Scheduled Commercial Banks in India
The first deals with the history part since the dawn of banking system in India. Government tookmajor step in the 1969 to put the banking sector into systems and it nationalized 14 private banks
in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but
not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of
RBI Act 1934 lays down the condition of scheduled commercial banks. The description along
with a list of scheduled commercial banks are given on this page
HISTORY OF BANKING IN INDIA
Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors. For the past three
decades Indias banking system has several outstanding achievements to its credit. The most
striking is its extensive reach. It is no longer confined to only metropolitansor cosmopolitans in
India. In fact, Indian banking system has reached even to the remote corners of the country. This
is one of the main reasons of India's growth process. Governments regular policy for Indian
bank since 1969 has paid richdividends with the nationalization of 14 major private banks of
India. Not long ago, an account holder had to wait for hours at the bank counters for getting a
draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most
efficient bank transferred money from one branch to other in two days. Now it is simple as
instant messaging or dials a pizza. Money has become the order of the day. The first bank in
India, though conservative, was established in 1786.From 1786 till today, the journey of Indian
Banking System can be segregated into three distinct phases. They are as mentioned below:
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Early phase from 1786 to 1969 of Indian Banks
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
New phase of Indian Banking System with the advent of Indian Financial
& Banking Sector Reforms after 1991.
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.
Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These
three banks were amalgamated in 1920 and Imperial Bank of India was established which started
as private shareholders banks, mostly Europeans shareholders. IN 1865 Allahabad Bank was
established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894
with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India,
Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of
India came in 1935.During the first phase the growth was very slow and banks also experienced
periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small.
To streamline the functioning and activities of commercial banks, the Government of India came
up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act
1949 as per amending Act of 1965 (Act No. 23of 1965). Reserve Bank of India was vested with
extensive powers for the supervision of banking in India as the Central Banking Authority.
During those days public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal department
was comparatively safer. Moreover, funds were largely given to traders.
Phase II
Government took major steps in this Indian Banking Sector Reform after independence. In 1955,
it nationalized Imperial Bank of India with extensive banking facilities on a large scale
especially in rural and semi-urban areas. It formed State Bank of India to act as the principal
agent of RBI and to handle banking transactions of the Union and State Governments all over
the country. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on19th July, 1969, major process of nationalization was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were
nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in
1980 with seven more banks. This step brought 80% of the banking segment in India under
Government ownership. The following are the steps taken by the Government of India to
Regulate Banking Institutions in the Country:
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1949: Enactment of Banking Regulation Act.
1955: Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 corers.
After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the
sunshine of Government ownership gave the public implicit faith and immense confidence about
the sustainability of these institutions.
Phase III
This phase has introduced many more products and facilities in the banking sector in its reforms
measure. In 1991, under the chairmanship of M Narasimha, a committee was set up by his name
which worked for the liberalization of banking practices. The country is flooded with foreign
banks and their ATM stations. Efforts are being put to give a satisfactory service to customers.
Phone banking and net banking is introduced. The entire system became more convenient and
swift. Time is given more importance than money. The financial system of India has shown a
great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics
shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime,
the foreign reserves are high, the capital account is not yet fully convertible, and banks and their
customers have limited foreign exchange exposure.
SCHEDULED COMMERCIAL BANKS IN INDIA
The commercial banking structure in India consists of:
Scheduled Commercial Banks in India
Unscheduled Banks in India
Scheduled Banks in India constitute those banks which have been included in the Second
Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in
this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. As on 30th
June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches.
The scheduled commercial banks in India comprise of State bank of India and its associates (8),
nationalized banks (19), foreign banks (45), private sector banks (32), co-operative banks and
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regional rural banks. Scheduled banks in India" means the State Bank of India constituted
under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State
Bank of India (Subsidiary Banks) Act,1959 (38 of 1959), a corresponding new bank constituted
under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act,
1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 (40 of1980), or any other bank being a bank included in the Second
Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-
operative bank. on-scheduled bank in India" means a banking company as defined in clause
(c) of section 5 of the Banking Regulation Act, 1949 (10 of1949), which is not a scheduled
bank".
The following are the Scheduled Banks in India (Public Sector):
State Bank of India
State Bank of Bikaner and Jaipur State Bank of Hyderabad
State Bank of Indore
State Bank of Mysore
State Bank of Saurashtra
State Bank of Travancore
Andhra Bank
Allahabad Bank
Bank of Baroda Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Overseas Bank
Indian Bank
Oriental Bank of Commerce
Punjab National Bank
Punjab and Sind Bank
Syndicate Bank
Union Bank of India
United Bank of India
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UCO Bank
Vijaya Bank
The following are the Scheduled Banks in India ( Private Sector):
ING Vysya Bank Ltd
Axis Bank Ltd
Indus Bank Ltd
ICICI Bank Ltd
South Indian Bank
HDFC Bank Ltd
Centurion Bank Ltd
Bank of Punjab Ltd
IDBI Bank Ltd
The following are the Scheduled Foreign Banks in India:
American Express Bank Ltd.
ANZ Grid lays Bank Plc.
Bank of America NT & SA
Bank of Tokyo Ltd.
Banquc Nationals de Paris
Barclays Bank Plc.
Citi Bank N.C.
Deutsche Bank A.G.
Hong Kong and Shanghai Banking Corporation
Standard Chartered Bank.
The Chase Manhattan Bank Ltd.
Dresdner Bank AG.
BANKING SERVICES IN INDIA
With years, banks are also adding services to their customers. The Indian banking industry is
passing through a phase of customers market. The customers have more choices in choosing
their banks. A competition has been established within the banks operating in India. With stiff
competition and advancement of technology, the services provided by banks have become more
easy and convenient. The past days are witness to an hour wait before withdrawing cash from
accounts or a Cheque from north of the country being cleared in one month in the south.
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Thissection of banking deals with the latest discovery in the banking instruments along with the
polished version of their old systems.
BANK ACCOUNT
The most common and first service of the banking sector. There are different types of bank
account in Indian banking sector. The bank accounts are as follows:
Bank Savings Account - Bank Savings Account can be opened for eligible person / persons and
certain organizations / agencies (as advised by Reserve Bank of India (RBI) from time to time)
Bank Current Account - Bank Current Account can be opened by individuals / partnership
firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts,
etc.
Bank Term Deposits Account - Bank Term Deposits Account can be opened by individuals /
partnership firms / Private and Public Limited Companies / HUFs/ Specified Associates /
Societies /Trusts, etc. Bank Account Online - With the advancement of technology, the major banks in the public and
private sector has facilitatedtheir customer to open bank account online. Bank account online is
registered through a PC with an internet connection. The advent of bank account online has
saved both the cost of operation for banks as well as the time taken in opening an account.
PLASTIC MONEY
Credit cards in India are gaining ground. A number of banks in India are encouraging people to
use credit card. The concept of credit card was used in 1950 with the launch of charge cards in
USA by Diners Club and American Express. Credit card however became more popular with
use of magnetic strip in 1970.Credit card in India became popular with the introduction of
foreign banks in the country. Credit cards are financial instruments, which can be used more
than once to borrow money or buy products and services on credit. Basically banks, retail stores
and other businesses issue these.
LOANS
Banks in India with the way of development have become easy to apply in loan market. The
following loans are given by almost all the banks in the country:
Personal Loan
Car Loan or Auto Loan
Loan against Shares
Home Loan
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Education Loan or Student Loan
In Personal Loan, one can get a sanctioned loan amount between Rs25, 000 to 10, 00,000
depending upon the profile of person applying for the loan. SBI, ICICI, HDFC, HSBC are some
of the leading banks which deals in Personal Loan. Almost all the banks have jumped into the
market of car loan which is also sometimes termed as auto loan. It is one of the fast moving
financial products of banks.
Car loan / auto loan are sanctioned to the extent of85% upon the ex-showroom price of the car
with some simple paperworks and a small amount of processing fee.
Loan against shares is very easy to get because liquid guarantee is involved in it.Home loan is
the latest craze in the banking sector with the development of the infrastructure.
Now people are moving to township outside the city. More number of townships is coming up
to meet the demand of 'house for all'. The RBI has also liberalized the interest rates of home loan
in order to match the repayment capability of even middle class people. Almost all banks are
dealing in home loan. AgainSBI, ICICI, HDFC, HSBC are leading.
The educational loan, rather to be termed as student loan, is a goodbanking product for the mass.
Students with certain academic brilliance, studying at recognized colleges/universities in India
and abroad are generally given education loan / student loan so as to meet the expenses on
tuition fee/ maintenance cost/books and other equipment.
MONEY TRANSFER
Beside lending and depositing money, banks also carry money from one corner of the globe toanother. This act of banks is known as transfer of money. This activity is termed as remittance
business. Banks generally issue Demand Drafts, Banker's Cheque, Money Orders or other such
instruments for transferring the money. This is atype of Telegraphic Transfer or Tele Cash
Orders. It has been only a couple of years that banks have jumped into themoney transfer
businesses in India. The international money transfer market grew 9.3% from 2003 to 2004 i.e.
from US$213 bn. to US$233bn. in 2004. Economists say that the market of money transfer will
further grow at a cumulative 12.1% average growth rate through2009.
FUTURE OF BANKING IN INDIA
A healthy banking system is essential for any economy striving to achieve good growth and yet
remain stable in an increasingly global business environment. The Indian banking system has
witnessed a series of reforms in the past, like deregulation of interest rates, dilution of
government stake in PSBs, and increased participation of private sector banks. It has also
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undergone rapid changes, reflecting a number of underlying developments. This trend has
created new competitive threats as well as new opportunities. This paper aims to foresee major
future banking trends, based on these past and current movements in the market. Given the
competitive market, banking will (and to a great extent already has) become a process of choice
and convenience. The future of banking would be in terms of integration. This is already
becoming reality with new-age banks such as YES Bank, and others too adopting single-PIN.
Geography will no longer be an inhibitor. Technology will prove to be the differentiator in the
short-term but the dynamic environment will soon lead to its saturation and what will ultimately
bethe key to success will be a better relationship management.
OVERVIEW
If one were to say that the future of banking in India is bright, it would be a gross
understatement. With the growing competition and convergence of services, the customers (you
and I) stand only to benefit more to say the least. At the same time, emergence of a multitude of
complex financial instruments is foreseen in the near future (the trend is visible in the current
scenario too) which is bound to confuse the customer more than ever unless she spends hours
(maybe days) to understand the same. Hence, I see a growing trend towards the importance of
relationship managers. The success (or failure) of any bank would depend not only on tapping
the untapped customer base (from other departments of the same bank, customers of related
similar institutions or those of the competitors) but also on the effectiveness in retaining the
existing base. India has witness to a sea change in the way banking is done in the past more than
two decades. Since 1991, the Reserve Bank of India (RBI) took steps to reform the Indian
banking system at a measured pace so that growth could be achieved without exposure to any
macro environment and systemic risks. Some of these initiatives were deregulation of interest
rates, dilution of the government stake in public sector banks (PSBs), guidelines being issued for
risk management, asset classification, and provisioning. Technology has made tremendous
impact in banking. Anywhere banking and Anytime banking have become a reality. The
financial sector now operates in a more competitive environment than before and intermediates
relatively large volume of international financial flows. Inthe wake of greater financial
deregulation and global financialintegration, the biggest challenge before the regulators is of
avoiding instability in the financial system.
RISK MANAGEMENT
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The future of banking will undoubtedly rest on risk managementdynamics. Only those banks
that have efficient risk managementsystem will survive in the market in the long run. The
effectivemanagement of credit risk is a critical component of comprehensive risk management
essential for long-term success of a banking institution. Although capital serves the purpose of
meeting unexpected losses, capital is not a substitute for inadequate decontrol or risk
management systems. Coming years will witness banks striving to create sound internal control
or risk management processes. With the focus on regulation and risk management in the Basel
Framework gaining prominence, the post-Basel II era will belong to the
Banks that manage their risks effectively. The banks with proper risk management systems
would not only gain competitive advantage by way of lower regulatory capital charge, but would
also add value to the shareholders and other stakeholders by properly pricing their services,
adequate provisioning and maintaining a robust financial structure.
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BANK PROFILE
BANK PROFILE
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Established on 10th February 1937 by Mr. M. Ct. M. Chidambaram Chettyar, leader in banking,
insurance and industry areas, Indian Overseas Bank (IOB) had the twin aims of attaining
specialization in overseas banking as well as foreign exchange business. IOB has always been
talked about for its excellent presence and services. At the time of inauguration, IOB started its
business in three branches at the same time. The branches were located at Karaikudi and
Chennai in India and Rangoon in Myanmar, erstwhile Burma. It had a branch in Penang also.
During the time when India became an independent nation, Indian Overseas Bank was running
38 branches in India and 7 overseas branches. At that point of time, the Deposits of the bank was
Rs.6.64 corer and Advances was Rs.3.23 corer
IOB received the status of nationalized bank in the year 1969 along with other 13 major banks.
By this time, it had 195 branches. Gradually between the periods 1969 and 1992, IOB started
spreading its wings in foreign destinations like Colombo and Seoul.
IOB was the first bank to receive ISO 9001 Certification from Det Norske Verities (DNV),
Netherlands in the month of September 1999 for its Computer Policy and Planning Department.
Besides, in its journey, it has won many awards and accolades too. These include:
y NABARD's award 2000-2001 for creating maximum number of credit links of Self Help
Groups in comparison to all the other Banks in Tamil Nadu
y Best Award under the category of Banking Technology in the year 2001
BRANCH PROFILE (IOB CATHEDRAL)
Cathedral is also one of the important branches in Chennai. In cathedral branch has more than
28000 account is there and also issuing pension like Chennai co-operation, Port trust, Govt.
Hospitals, railways, MTC, PWD, Tele-communication department etc. this service is offering
from 35years ago. Totally 32 staff working for that the branch, Foreign exchange dealing is done
here. All type of loans is provided here. Locker, DD, BC, gold coins etc., are the facilities given
here. Cathedral branch is CBS type.
WORKING HOURS;
In Indian overseas bank working hours is from 9:30AM to 4:30PM.
HEAD OFFICE;
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The head office of the Indian overseas bank is located at mount road near spencer plaza
ADDRESS;
No; 763 Anna salai,
Chennai 600002
INDIAN OVERSEAS BANK;
IOB is a one of the major bank based in Chennai with over 1400 domestic branch & 6 branches
in Abroad. The bank was established in 1937 to encourage overseas banking for foreign
exchange operation. The bank started simultaneously with 3 branches there are;
y Indian overseas bank Chennai
y Indian overseas bank Rangoon
y Indian overseas bank Singapore
y Indian overseas bank Burma
y Indian overseas bank Malaysia
y Indian overseas bank Srilanka
y Indian overseas bank Sumatra
In the year 2000 I.O.B engaged India in IPO which brought the Govt. share in the bank down to
75%.
IOB International expansion
y 1937-38: As mentioned above, IOB was international from its inception with branches
Indian Overseas Bank Rangoon, Indian Overseas Bank Penang, and Indian Overseas Bank
Singapore.
y 1941: IOB opened a branch in Malaya that presumably closed almost immediately because
of the war.
y 1946: IOB opened a branch in Ceylon.
y 1947: IOB opened a branch in Bangkok and re-opened others.
y 1948: United Commercial Bank (see below) opened a branch in Malaya.
y 1949: IOB opened a branch in Bangkok.
y 1963: The Burmese government nationalized IOB's branch in Rangoon.
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y 1973: IOB, Indian Bank and United Commercial Bank established United Asian Bank
Berhad. (Indian Bank had been operating in Malaysia since 1941 and United Commercial
Bank Limited had been operating there since 1948.) The banks set up United Asian to
comply with the Banking Law in Malaysia, which prohibited foreign government banks
from operating in the country. Also, IOB and six Indian private banks established Bharat
Overseas Bank as a Chennai-based private bank to take over IOB's Bangkok branch. The
Baharat Overseas Bank is the only private bank that the Reserve Bank of India has permitted
to have a branch outside India. The ownership was: Indian Overseas Bank (30%), Bank of
Rajasthan (16%), Vysya Bank (14.66%), Federal Bank (19.67%), Karur Vysya Bank (10%),
South Indian Bank (10%) and Karnataka Bank (8.67%). Bharat Overseas serves the Indian
ethnic community in Thailand.
y 1977: IOB opened a branch in Seoul.
y 1991: Bank of Commerce (BCB), a Malaysian bank, acquired United Asian Bank (UAB). In
1999 BCB merged with Bank Bumiputra Malaysia to form Bumiputra-Commerce Bank
Berhad.
Indian overseas bank has being operated in Malaysia since 1941, and united commercial bank
limited has been operated since 1948. The bank has being set up united Asian company with
banking law in Malaysia, which prohibited foreign Govt. Bank from operating in the county.
Also I.O.B and other six bank Indian private bank etc. Bharath overseas banks as Chennai based
private bank to take over I.O.B Bangkok branch. The bharath overseas bank is the only private
bank, which the reserve bank of India has permitted to have a branch out side India.
The ownership was,
Indian overseas bank (30%)
Bank of Rajasthan (18%)
Vysya bank (14.66%)
Federal bank (19.67)
South Indian bank (10%).
Karnataka bank (8.67%).
Bharath overseas bank the Indian ethic community in Thailand.
In 1977 I.O.B opened a branch in Seoul.
1991 bank of commerce (BCB) a Malaysian bank (U.A.B) in 1999 BCB merged with
bank Brahmaputra Malaysia.
FUNCTIONS OF INDIAN OVERSEAS BANK
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Its accept deposits from the public.
It lends money to the needy people, for having loans, jewels loans & for the customer
durable goods.
Bank issue Cheque.
It deals in the bill of exchange, dies, promissory notes, coupons, draft, and bill of
lending, railway receipts, warrants, certificates, scripts & other securities weather
transferable or negotiable.
It acts as agent for remittance of money on behalf of government, municipality, local
board, Insurance Corporation & other.
It grants & issue letter of credit travelers Cheque & circular notes.
BOARD OF DIRECTORS
STRENGTH OF THE BOARD:
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Presently, there are 10 Directors on the Board of the Bank. Brief Particulars of each of the
directors are placed below:
1. Shri S.A. Bhat,
Chairman and Managing DirectorDOB: 20.10.1950
Qualification: B.Sc (Hons) CAIIB Part I
Appointed on: 04.06.2007
Term ends on: 31.10.2010
(Date of Superannuation)
AT BANK OF INDIA:
Shri S A Bhat joined Bank of India as a Probationary Officer in 1972 and was with them till 1 st
February 2006.
In Bank Of India, he started as an officer and Branch Manager of rural and semi urban
branches. He was ChiefDealer at Mumbai Overseas Branch, of Bank of India. He had a two-
year stint at Bank of Indias London Branch. He was with that Banks New York Office for four
years as Vice President and Comptroller. He has headed the Bank of Indias Chennai Zone as
Zonal Manager. As General Manager International Banking, he was in charge of the entire
International operations of Bank of India. Later as General Manager, Risk Management, he was
responsible for the implementation of Risk Management techniques and Basel II norms.
While at Bank of India, he was also nominee director for STCI, IL & FS and Indo Zambia
Bank.
AT UCO BANK AS EXECUTIVE DIRECTOR
Shri Bhat was appointed by the GOI as Executive Director of UCO Bank on 2nd February 2006
and held that position till his present assignment as CMD of Indian Overseas Bank. Shri Bhat
has made many contributions to the Banking Industry, as a member of several committees. Hewas on the Technical Advisory Committee, Steering Group for Basel II, Committee on Credit
Advisory System for Exporters, and Working Group for revision of ALM, all of which were
constituted by Reserve Bank of India. He was also on the Indian Banks Associations
Committee for drawing Road Map for implementation of Basel II.
With an overall exposure in Banking, his strengths lie in International Banking, Credit, Rural
Finance and Risk Management.
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2. Shri Y.L. Madan
Executive Director
DOB : 24.08.1950
Qualification : M.Sc., MBA, CAIIB
Appointed on: 16.05.2008
Term ends on: 31.08.2010
(Date of Superannuation)
AT CANARA BANK
Shri Y L Madan joined Canara Bank in 1973 as Officer trainee and has 35 years of
experience. He served mostly in northern areas of Punjab, Haryana, Chandigarh, Bihar, Delhi
and had a posting at Overseas Exchange Company in Doha, Quatar, managed by CanaraBank, He had one year stint as Faculty in Canara Bank Training Centre, Mumbai. He was the
General Manager from October 2003 in Canara Bank before his appointment in IOB as its
Executive Director.
2. Smt.Nupur Mitra
Executive Director
DOB: 08.12.1952
Qualifications: B.Sc., LLB
Appointed on: 07.12.2009
Term ends on: 31.12.2012
(Date of Superannuation)
AT BANK OF INDIA
Smt.Nupur Mitra started her career with Bank of India in Lucknow as Direct Recruit Officer in
the year 1975. During her service spanning over 34 years, she served the Bank of India in
various capacities at the branches and its Zonal Offices.
She moved over to head London Branch on overseas assignment in mid 2001. Her overseas
tenure in London and thereafter as Chief Executive of Europe operations was the most satisfying
part of her career in terms of business and contribution.
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After an exemplary overseas stint, back in the Motherland, she headed the Mumbai and
Chandigarh Zones of the Bank. As General Manager at the Corporate Office she was in charge
of Credit, SME, Retail Banking (Deposit & Advances), Card Products, Public Relations,
Depository Services, etc.
Smt. Nupur Mitra was the General Manager of Bank of India before her appointment in IOB as
its Executive Director.
3. Dr. Vinita Kumar
Government Nominee Director
DOB : 25.12.1954
Qualifications : MA (Economics) Ph. D., Indian
Economic Service (1977)
Nominated by GOI on: 10.06.2008 and will continue until further orders
Dr Vinita Kumar, is presently the Economic Adviser, Department of Financial Services,
Ministry of Finance, New Delhi.
She has published books on the following topics.
Economic Growth and Rural Poverty The Indian Experience (1960-1995)
Learning to Share : Experience and Reflections on Participatory Rural Appraisal and
Community participation.
4. Smt. Chitra Chandramouliswaran
RBI Nominee Director
DOB : 26.07.1944
Qualification: M.Sc., CAIIB
Nominated by GOI on: 27.02.2007 and will
continue until further orders.
Smt Chitra Chandramouliswaran joined RBI in 1967 and has worked Industrial Export and
Credit Department, Banking Operations & Development and Foreign Exchange (Exchange
Control) Departments and RBIs Central Office in Mumbai. She has also held senior
assignments in RBIs Regional Offices in Delhi and Bangalore. She retired as Chief General
Manager of Reserve Bank of India in 2004.
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She has been nominated by GOI as RBI nominee on the Board of the Bank with effect from
27.02.2007.
5. Shri N. Sridaran
Workmen Employee DirectorDOB: 10.12.1950
Qualification: SSLC
Nominated by GOI on: 20.04.2007
Term ends on: 19.04.2010 and thereafter until his successor is duly
nominated or till he ceases to be a workmen employee of IOB or until further orders, whichever
is earlier.
Shri N Sridaran joined the Bank on 02.05.1972 and is having more than 36 years of banking
experience in IOB. He is presently a Special Cadre Assistant attached to Cathedral Branch of the
Bank.
6. Shri B. V. Appa Rao
Part-Time Non-Official Director
DOB: 06.06.1950
Qualifications: B.Com. F.C. A.
Nominated by GOI on: 29.08.2008
Term ends on: 28.08.2011
A qualified Chartered Accountant in 1980, Shri Appa Rao, immediately joined Andhra Bank as
Officer and served for 6 years. Leaving Andhra Bank, he joined M/s The Andhra Sugars Limited
of Andhra Pradesh in the Senior Management and served for 7 years.
He is presently a Senior Partner in M/s B.V. Rao Associates, Chartered Accountants, Guntur
started in the year 1994. During these 14 years of service he was Statutory Branch auditor for
Union Bank of India, State Bank of India and Andhra Bank. He was Concurrent Auditor for
various branches of Andhra Bank and Union Bank of India at Guntur. He was also Statutory
Auditor for the Divisions of United Insurance company Limited appointed by Comptroller and
Auditor General of India.
7. Shri Sooraj Khatri
Part-Time Non-Official Director Second Time
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DOB: 06.08.1955
Qualifications: B.Sc., LL.B., Dip. In Labour Law
Nominated by GOI on: 26.10.009
Term ends on: 25.10.2012 or until further orders,
Whichever is earlier?
Shri Sooraj Khatri is practicing legal profession as an Advocate in Rajasthan High Court. He is
also a journalist, Editor and Publisher.
8. Shri A.K. Bhargava
ShareholderDirector
DOB: 10.05.1943
Qualification: B. Com., LL. B., CAIIB
Elected by Shareholders other than GOI on: 25.11.2008
Term ends on: 07.12.2011
Shri A K Bhargava is a retired General Manager of Punjab National Bank. He is a professional
Banker with 40 years of experience. He is at present a Management and Financial Consultant.
9. Dr. Chiranjib Sen.
ShareholderDirector
DOB: 29.09.1946
Qualification: MA (Econ.) Ph. D
Elected by Shareholders other than GOI on: 25.11.2008
Term ends on: 07.12.2011
Dr Chiranjib Sen. is a Professor of Economics in the Indian Institute of Management, Bangalore
and a visiting Professor of about 13 universities in India and abroad. He has edited many books.
Numbers of his articles on various topics of varied interest have been published in Indian and
Foreign journals.
10. Shri A Vellayan
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ShareholderDirector
DOB: 09.01.1953
Qualification: B.Com, MBA
Elected by Shareholders other than GOI on: 08.12.2008
Term ends on: 07.12.2011
Shri A Vellayan, aged 56 years, hailing from Chennai, is a Management graduate from the
University Of Warwick Business School in UK and a diploma holder in Industrial
Administration from the University of Aston, Birmingham, UK. He is the Vice Chairman and
Director Strategy of the Murugappa Group, a business conglomerate headquartered in
Chennai. Shri Vellayan is the non-executive Chairman of two Public Limited Companies viz.
EID Parry (India) Limited and Coromandel Fertilizers Limited and is also on the Board of
several reputed Public Limited companies. He is the Vice President for Southern Indian
Chamber of Commerce & Industry and a member of the Executive Committee of FICCI, Delhi.
Shri Vellayan has been elected by the shareholders (other than the Central Government) to
represent their interest in the Board.
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PRODUCTS & SERVICES
PRODUCTS & SERVICES
IOB Bank offers wide variety of Deposit Products to suit your requirements. Coupled with
Convenience of networked branches/ ATMs and facility of E-channels like Internet and Mobile
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Banking, IOB Bank brings banking at your doorstep. Select any of our deposit Products and
provide your details online and our representative will contact you for Account Opening.
DEPOSITS:
Saving BankDeposits
No Frills SB Accounts
Current Account
Fixed Deposit
Reinvestment Deposit
Recurring Deposit Account
Annuity Deposit Plan
Multiple Investment Scheme
Cumulative Benefit Deposit
Multiple Deposit Account
SAVING DEPOSIT
In this type of deposit the depositor can deposit & withdraw whenever he is in need of money.
The depositor can also have Cheque book facility by maintain a balance of Rs.500/-, in the
account any person can deposit on behalf of the account holder can withdraw the amount.
FIXED DEPOSIT
Fixed deposit can be accepted for 30 days to 37 months and at various interest rates,
while depositing money in a fixed. The customer received a deposit receipt which is usually
market NOT NEGOTIABLE the deposit is repayable on demand & after the maturity period.
RECURRING DEPOSITS
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Deposits received for 6 months to a maximum of 10 years as monthly fixed installment.
The amount saved and interest compounded at quarterly intervals paid at the time of maturity. In
case of monthly installments exceeding Rs.25000 a maximum period is restricted to 3 years.
SPECIAL FIXED DEPOSITS
Deposits accepted for 6 months to 10 years. Interest payable every quarterly or monthly.
Monthly interest is payable @ discount rate.
RE-INVESTMENT DEPOSITS
Deposits accepted for 6 months to 10 years. Interest compounded quarterly and at the
time of maturity in case of deposits Rs. 15 lakhs maximum period is restricted to 3 years.
GRANTINTY LOANS AND ADVANCELending is one of the primary functions of co- operative bank, some of the method of lending
are.
Personal Loan
Car Loan
Commercial Vehicle Loan
Corporate Loans
Housing Loan
Home Improvement Loan
Educational Loan
NRI Home Loans
Agricultural Loans
Finance For Small, Medium And Large Enterprises
PERSONAL LOANS
Individual in employment, professional, self-employed not over 55 years of age is
eligible for personal loan to buy consumer durable such as electric, electronic goods metals and
wooden furniture etc. the minimum loan is 5 times the gross salary or 90% if the cost so the
article whichever is less.
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PUSHPAKHA (CAR LOAN)
Car finance for purchase of new as well as used car and two wheelers 90% of a cost of
new car and two wheeler and 75% cost of old car two wheeler or financed against hypothecation
of vehicles. Repayments of 60 EMI for new car and 36 EMI for old car
COMMERCIAL LOAN
Range of services on existing loans & extended products like funding of new vehicles, refinance
on used vehicles, balance transfer on high cost loans, top up on existing loans, Extend product,
working capital loans & other banking products.
SUBHA GRUHA
Home loans scheme for residents individual up to Rs. 50 lakhs repayable in 20 years for
purchase construction of new/old house flats in the case of fixed rate opinion the maximum
repayment period is 10 years.
HOME IMPROVEMENT SCHEMES
Loans schemes for repairing / renovation/up gradation of existing houses to individuals
in service, profession, trade. Loan up to Rs.5 lakhs repayable in 120 EMI with a holiday of
months.
VIDYA JOTHI EDUCATION LOAN SCHEME
Loans schemes and student education in abroad loan amount Rs. 7.5 lakhs study in
abroad.
LIQUIRENT
Loan schemes for owners of building let out to banks, corporates MNCs finance is
provided against future rent visible.
FARM EQUIPMENT LOANS
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Preferred financier for almost all leading tractor manufacturers in the country. Flexible
repayment options in tandem with the farmer's seasonal liquidity. Monthly, Quarterly and Half-
yearly repayment patterns to choose from. Comfortable repayment tenures from 1 year to 9 year
CREDIT CARDSIOB Bank Credit Cards give you the facility of cash, convenience and a range of benefits,
anywhere in the world. These benefits range from life time free cards, Insurance benefits, global
emergency assistance service,
Discounts, utility payments, travel discounts and much more.
DEBIT CARDS
The IOB BankDebit Card is a revolutionary form of cash that allows customers to access their
bank account around the clock, around the world.
The IOB BankDebit Card can be used for shopping at more than 100,000
Merchants in India and 13 million merchants worldwide.
TRAVEL CARD
Presenting IOB Bank Travel Card.The Hassle Free way to Travel the world. Traveling with US
Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; take IOB
Bank Travel Card. Issuedin duplicate. Offers the Pin based security. Has the convenience of
usage of Credit orDebit card.
PRE PAID CARDS
IOB Bank brings to you a complete bouquet of pre-paid cards providing payment solutions at
your fingertips. IOB Bank pre-paid cards are a safe &
Convenient way for associate payments, disbursements, gifting & small ticket transactions. Pre-
paid cards are available on a VISA platform thus providing accessibility to over one lakhmerchant establishments & cash withdrawal from all VISAS.
IOB BANK PURE GOLD
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Gold has been traditionally the most favored form of investment for Indians. In fact, India, even
today is amongst the highest customers of Gold in the world. However, the Gold market remains
largely unorganized with reliability and convenience remaining the key issues for gold buyers in
the country. IOB Bank with its `Pure Gold' offer attempts to bridge the gap between the need of
the customers for buying gold and availability of an organized avenue to satisfy that need, by
taking care of the two key components Reliability and Convenience. Reliability 24 Carat IOB
Bank Pure Gold is imported from Switzerland.
This Gold carries a 99.99% Assay Certification, signifying highest level of purity, as per
international standards. IOB Bank Pure Gold is competitively priced based on daily prices in the
international bullion market. Currently, gold is available in 2, 4, 8, 20, 50,100gms.
FOREIGN EXCHANGE DEALINGS
The foreign exchange management act.1999 defines: Foreign exchange means foreign
currency and includes---
(I) Deposits, credits and balances payable in any foreign currency.
(II) (ii) Drafts, travelers Cheque, letters of credit or mills of exchange, expressed or
drawn in Indian currency but payable in any foreign currency;
(iii) Drafts, travellers Cheque, letters of credit or bills of exchange drawn by banks, intuitions or
persons outside India, bit payable in Indian currency.
Thus, foreign exchange includes foreign currency, balances kept abroad, and instruments
payable in foreign currency, and instruments drawn aboard but payable in Indian currency.
Foreign exchange is the mechanism by which the currency of one country gets converted
into the currency of another country. Foreign exchange plays an important role in international
trade. The conversion of currencies is done by banks who deal in foreign exchange. These banks
maintain stocks of foreign currencies in the form of balances with banks abroad.
REPORTING OF FOREIGN EXCHANGE TRANSWACTIONS
BY BRANCHES:
MONETARY LIMT:
ANY SALE OR PURCHASE OF FOREIGN EXCHANGE WHERE REPEE VALUE IS RS.50,
000/- or above, branches should obtain rat3s form dealings rooms at FEDCO (FOREIGN
EXCHANGE DEVELOPMENT CENTRAL OFFICE) Th.B., Mumbai, as the case maybe. If the
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transactions are put through at the rates given by FEDCO/Tr.B.,Mumbai, the same should be
reported by branch immediately by telex/fax.
If the branches purchase more than one sale at a time, whose aggregate value is rs.50,000/- and
above then also branches should contact dealings room at FEDCO/Th.B. ,Mumbai for rates and
repor6t the same by telex/fax even though the individual item may be below Rs.50,000/-.
If the branches purchase/sell foreign exchange (either as one or multiple) whose value at the
time of purchase/sale will be below Rs.50,000/- by applying the card rate, but during the day the
aggregate purchase or sale exceed Rs.50,000/-, then at the end of the day branches should report
the aggregate of such purchases/sales dealing room at FEDCO/Tr. Mumbai by teem/fax at the
card rate if the aggregate purchase or sale is below rs.50,000/-, branch should report through
exchange position memo immediately. The exchange position memo may be sent by teem or
details conveyed over phone according to the convenience of branch. Care should be taken not
to omit any transaction form reporting
In case of u since bill discounted, the branches should contact dealing room at FEDCO/TR. B,
Mumbai for rates irrespective of the amount of bill, i.e., even if the rupee amount of bill is less
than Rs.50,000/-. Branches should not apply card rates but apply card rates but apply rates
obtained from dealing room.
CHASSIFICATION OF SALE/PURCHASE TRANSACTIONS FOR
REPORTING PURPOSES
The purchase transactions are classified under the heads exports and non-exports. Similarly
the sale transactions are classified under the heads non-import
The items are to be include these heads are as below.
EXPORT NON-EXPORTS IMPORTS NO-IMPORTS
Export bills
Purchased
discounted
negotiated
Purchase of
instruments
Other than for export
Sales transaction for
all import whether
under LC or not
under LC
Sale for issuances ofDD /
TT/TC etc., for other than
imports
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Realization of
export bill sent
and collection.
Realization
instruments on
collection other than
of exports
Sales of foreign
exchange for import
bill which are
received directly by
the imported
Conversion of NRE rupee
to FCNR/RFC deposits
etc.,
OBR realizations Inwards remittance
like other than
exports
The sales transaction
representing advance
remittance to
overseas exporters for
imports to India
National sales for transfer
of Overdue exports bill
purchased / discounted/
negotiated to
AAORB[Advance against
overdue export bills
receivable
Purchase of
Cheque / DD is
received by
exported towards
export proceed
Conversion of FCNR
[B, EEFC/RFC/FCA
deposits to rupees
Sales of foreign
exchange for direct
imports
Sales for require and
realize and purchased /
discounted negotiated
export bills or unrealized
purchased instruments[
CLEARN]
Realization of
Cheque / DD is
sent on collection
returning to
exports
Conversion of PCFC,
FCL, WCTL, amount
to rupees
---------------- All cross currency sales
where the sales leg is not
per training to imports
Purchase of any
inwards
remittance /
advance
remittance
towards exports
Any other purchase
transaction which is
non-export in nature
---------------- Any other sales other than
imports
Payments of All cross currency ------------- ----------------
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exports bills by
debit of NRE a/c
transaction where the
corresponding
purchase leg does not
certain to exports
OTHER LOANS
The bank providing personal loans for purchasing television, refrigerator other house hold
article. There also offering loans to small scale industry, self-employed person & transport
operators.
NRI ACCOUNTS
y Non-Resident Ordinary (NRO)
y Resident Foreign Currency Account (RFC)
y Foreign Currency Non-Resident Accounts (Banks)
y NRI home loan scheme
y NRI remittances
y Remittances procedures
y Tracking cell
y Forward cover
y IOB NRI shield
y IOB Expo Gold Card
Corporate Banking
y
Micro Small and Medium Enterprises (MSME)
y IT & BPO
y Cash management services -IOB STARS
Rural
y IOB's commitment for social causes
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y Agricultural short time loans
y Financial inclusion
y Agri business consultancy
OTHER SERVICES AND PRODUCTS:
VISA International Credit Cards
VISA Debit Card
IOB Fine Gold
Real Time Gross Settlement (RGTS)
Forex Collection Services
Agriculture and Business Consultancy Service
Investment options like Mutual Funds and Shares
SECONDARY FUNCTION OF THE BANK
Secondary function refers to the various axillary service rendered by the bank
Safety locker
Clearing of bills
Axillary service
Overdraft of weavers
Financial analysis for PDS
Issue ofDD
Refinance for product loan
Issue of BC
IOB CREDIT CARD
Weiver of annual / entry fee ( life time)
International card affiliated to VISA
Roll over facilities with repayment of 10 % of the outstanding amount
Lowest interest @ 24% (analyzed) for the roll over credit
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Free credit card period up to 50 days from the date of purchase.
Enhanced insurance coverage such as personal, accident, baggage, purchase, protection,
etc.
Add on car facilities to the family members.
Lowest service charges @ 2.25% on the cash payment.
Facilities to draw cash at over 15000 ATMs in India and over 8.7 lakhs ATMs
worldwide.
Payment for fee to foreign institution
Reward point are redeemed and credited to the account.
INSURANCE LINKED RETAIL PRODUCTS
IOB jeevan
Health care plans
Vidya suraksha
Vidya jothi with suraksha
Liability insurance for retail loans.
NRI shield
MUTUAL FUND DISTRIBUTIONS
Franklin Templeton limited
Tata mutual funds
ITC mutual funds
Sundram BWP Paribas funds
Principle IOB AMC (I) limited
Kotak mutual funds
Standard charted mutual funds
ICICI prudential mutual funds
UTI mutual funds
GOVERNMENT BUSINESS
y E-Payment of direct taxes
y E-Payment of indirect taxes
y Pension payment scheme
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y Sales tax collections
y Provident Fund Scheme 1968
y 8 percent savings taxable bond scheme
y Senior citizen scheme 2004
SERVICE AVAILABILITIES AT FREE OF CHARGES
y CBS transaction
y Insurance, revenue, annual, free for ATM cards
y No frill account, no minimum balance changes and additional deduction of names in
deposits
y Verification in nomination
y Closure of A/c SB /CDCC
y Charges in operation of CDCC
y Duplicate deposit receipt
y No due certificate
y Cancelation ofDD / BC
y Balance enquire by using ATM cards
y Inward remittance through NEFT/ RTGS
DEMAND DRAFT CURRENT CHARGE IN IOB
AMOUNT RANGE FOR CUSTOMERS NON- CUSTOMERS
Up to 1000 Rs. 14 Rs. 21
Above 1000-5000 Rs. 21 Rs. 32
Above 5000-10000 Rs. 28 Rs. 41
Above 10000-1 lakh Rs. 2.04 per 1000. (Min Rs. 30)Rs. 3.06 per 1000
(Min Rs. 45)
Above 1 lakh- 10lakhRs. 2.76 per 1000
(Min Rs. 2712)
Rs. 4.41 per 1000
(Min Rs. 4068)
Above 10 lakhRs. 2.76 per 1000
(Min Rs. 2712)
Rs. 4.41 per 1000
(Min Rs. 4068)
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BANKERS CHEQUE CURRENT CHARGES IN IOB
AMOUNT RANGE FOR CUSTOMERS NON- CUSTOMERS
Up to 1000 Rs. 7 Rs. 11
Above 1000-5000 Rs. 20 Rs. 31
Above 5000-10000 Rs. 28 Rs. 41
Above 10000-1 lakh Rs. 2.05 per 1000. (Min Rs. 30)Rs. 3.06 per 1000
(Min Rs. 45)
Above 1 lakh- 10lakhRs. 1.38 per 1000
(Min Rs. 1020)
Rs. 2.07 per 1000
(Min Rs. 1058)
Above 10 lakh
Rs. 1.38 per 1000
(Min Rs. 1632)
Rs. 2.07 per 1000
(Min Rs. 2448)
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STATEMENT OF THE
OBJECTIVES
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OBJECTIVE OF THE STUDY
PRIMARY OBJECTIVE
To study, analyze and evaluate the customer satisfaction level towards the different
services rendered by the bank and to identifying the critical success factors.
SECONDARY OBJECTIVES
To evaluate the awareness level of the customer on the product and services.
To find out the differences among perceived service and expected service.
To evaluate the process efficiency in customer query and requirement handling
To understand consumers preferences.
To access the degree of satisfaction of the customers
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REVIEW OF LITERATURE
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1. According to Anne-Birte Stensgaard Senior News Editor, June 20-2006 states that the
new insurance product is an arrangement between the United India Insurance Company
Limited and the IOB that provides Insurance cover for NRIs under the scheme - IOB NRI
Shield. The scheme covers NRIs during their stay in India, up to a maximum of 180 days a
year. NRIs during their visit to India find Insurance a pre-requisite to meet their
contingencies arising out of ailments, accidents, baggage loss and other perils like fire etc.
This scheme will meet all the Insurance requirements of the NRIs and covers varied risks
anticipated during their stay in India. All IOB bank account holders who desire to participate
in this insurance scheme can avail the facility at UAE Exchange outlets - an extensive
network in the UAE - to pay their premium amounts. On the occasion of the launch, Mr. T
S Narayanasami, Chairman and Managing Director of Indian Overseas Bank said, "IOB
which is a 69 years old bank has adapted successfully to the emerging trends by introducing
new products and services in financial sector. The Bank's power of performance has
stemmed from customer-centric business ethos, relentless IT initiatives and policy focus."
"Though we have association with many exchange companies in Gulf area, our association
with UAE Exchange Centre, UAE dates back to more than 25 years," added Narayanasami.
2. According to PR Newswire LONDON, October 9, Indian Overseas Bank in Singapore
has selected integrated core banking solution, Misys Midas Plus, to introduce new products
and client services to support business expansion, deliver new levels of customer satisfaction
and improve operational performance while enabling market leading international standards
in accounting and regulatory compliance & controls. Indian Overseas Bank was the first
India based bank to commence operations in Singapore more than 60 years ago and provides
a comprehensive range of banking services; specializing in retail banking, trade finance and
a wide range of remittance facilities to India
3. According to Lassar, Walfried M., Manolis, Chris, Winsor, Robert December 5 2000,
state that In the Seroquel Scale is the principal instrument in the services marketing literature
for assessing quality. The Technical/Functional Quality Framework is also a widely accepted
model on service quality. However, the ability of either to predict customer satisfaction has
not been looked into. Relating to the private banking industry, the Technical/Functional
Quality Framework was found to be more suited to predicting customer satisfaction.
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4. According to Powpaka, Samart October 19 1996 Statethat the influence of outcome
quality on customers' perceptions of overall service quality are studied. Results show that
outcome quality has a strong influence on customers' overall service quality assessment.
Outcome quality is also most important in services with search and experience outcome
quality attributes. A model to enable marketing managers to evaluate customers' perceptions
of service quality is also discussed.
5. According to Lee, Haksik, Lee, Yongki, Yoo, Dongkeun March 24 2002 State that the
Performance as perceived by customers rather than the difference between that perception and
the customer's prior expectations explains more the variation in service quality. It is the
customer's satisfaction that leads to perceived quality of service rather than the reverse. More
emphasis on responsiveness is expected to be placed on people-based services than on
equipment and facility based services.
6. According to CBA REPORT June 12 - 2005state that the banking industry had a better
than average score for customer satisfaction over the past year, according to the latest report by
American Customer Satisfaction Index (ACSI).
The score for how well the banking industry is doing overall (75, unchanged from last year),
compares to the overall Level of satisfaction in the US economy, representing all companies and
industries measured by the ACSI, which stands at 74.3, so the banking industry is doing slightly
better than the average of all consumer goods and services.
Established in 1994, ACSI is a uniform and independent measure of household consumption
experience, which tracks trends in customer satisfaction and provides benchmarking insights of
the consumer economy. The ACSI is produced by the Business School at the University of
Michigan, in partnership with the American Society for Quality (ASQ) and the international
consulting firm, CFI Group.
ACSI says their scores are a leading indicator of future consumer buying. "High satisfaction
scores make it easier for banks to increase their relationships with their customers and sell them
more products and services; low satisfaction has the opposite effect. In general, this translates
into a prediction of changes in revenues," according to ACSI.
7. According to Robert W. Armstrong, Tan Boon Seng September 2 2005 state that
Extends the current understanding of customer satisfaction at the business-to-business level in
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the Asian banking industry. The main thrust of the paper is an attempt to conceptualize a
comprehensive model of satisfaction at the business-to-business level incorporating guanxi
(Chinese business relationships), relationship marketing and the disconfirmation paradigm. The
essence of the research highlighted the importance of relational constructs, in addition to the
disconfirmation paradigm, in impacting customer satisfaction at the business-to-business level in
the Singapore banking industry. At the business-to-business level in the Asian context, the
disconfirmation paradigm is still the predominant paradigm influencing the customer
satisfaction process. Relationship marketing and guanxi are significant in our comprehensive
model of corporate-customer satisfaction. Relationship marketing was found to have both a
direct and an indirect impact (through disconfirmation) on corporate-customer satisfaction.
Guanxi was found to exert an indirect impact on satisfaction as opposed to the initial
hypothesized direct impact on satisfaction.
8. According to Luis Moutinho, Douglas T. Brownie November 24 2008 State that the
nature and direction of the satisfactions that are delivered to customers of bank services are
explored, and the criteria used to evaluate these services are highlighted. The non-metric
multidimensional scaling technique enabled respondents' perceptions to be represented spatially.
It is revealed that respondents had high levels of satisfaction with regard to the location and
accessibility of branches and ATMs, and acceptance of the current levels of banking fees; but
expressed some caution in their evaluation of new and improved services.
9.According to U.S. Bank June 2 -2008 State that the MINNEAPOLIS - (Business Wire)
U.S. Bank customers are increasingly loyal and satisfied, and they consider U.S. Banks services
to be of high quality and value according to the American Customer Satisfaction Index (ACSI)
research conducted in the fourth quarter of 2009.
U.S. Bank surpassed industry averages and topped the four largest banks in the country in
customer satisfaction, customer expectations, perceived quality, perceived value and customer
loyalty.U.S. Bank scored 77 in overall ACSI customer satisfaction, compared to the next
highest reported score of 73 and the industry average of 75. U.S. Bank exceeded reported
industry averages in the important categories of loyalty, quality and value by seven or more
points.
Weve experienced a flight to quality for many months, and now these results are evidence of
our success," said Richard Davis, chairman, president and chief executive officer of U.S.
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Bancorp. Our company has been a source of strength and stability and as these scores
demonstrate, customers are taking notice. At U.S. Bank, they find high quality service and
value, and perhaps most importantly, our customers are very loyal. As now the fifth largest
commercial bank in the United States with the fourth largest branch network, we are very
pleased with our results, and we know that this positive momentum is just the beginning. We are
focused on customer loyalty with a number of new programs aimed at moving us from very
good to great.
ACSI independently surveys customers of the largest companies in consumer goods and services
industries. U.S. Bank has engaged ACSI to survey its retail customers over the last several years
and continues to improve its scores.
10. According to D.M. Mahaptra The business line April 11 - 2008(page4) State that
The working of the customer's mind is a mystery which is difficult to solve and understanding
the nuances of what customer satisfaction is, a challenging task. This exercise in the context of
the banking industry will give us an insight into the parameters of customer satisfaction and their
measurement. This vital information will help us to build satisfaction amongst the customers and
customer loyalty in the long run which is an integral part of any business. The customer's
requirements must be translated and quantified into measurable targets. This provides an easy
way to monitor improvements, and deciding upon the attributes that need to be concentrated on
in order to improve customer satisfaction. We can recognize where we need to make changes to
create improvements and determine if these changes, after implemented, have led to increased
customer satisfaction. "If you cannot measure it, you cannot improve it." - Lord William
Thomson Kelvin (1824-1907).
11. According to M. SadiqSohail and Balachandran Shanmugham march 23 -2003 State
that
the paper examines the current trends in the e-commerce revolution that has set in motion in the
Malaysian banking sector and reports on an empirical research that was carried out in Malaysia
to study the customers preference for electronic banking and the factors, which they considered
influenced the adoption of electronic banking. Results based on the analysis of data relating to
300 respondents indicate that while there is no significant differences between the age and
educational qualifications of the electronic and conventional banking users, some differences
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exists on other demographic variables. Analysis further reveals that accessibility of Internet,
awareness of e-banking, and customers reluctance to change are the factors that significantly
affected the usage of e-banking in Malaysia. The paper discusses on the implications of these.
Limitations of the study are highlighted and further research directions are suggested.
12. According to Lee, Ming Chang; Hwan, Ing San-Tokyo December 1, 2005 State that
the
This study examines whether there are economic benefits to be gained from improving service
quality in the Taiwanese banking industry. Service quality is perceived quality; and different
from objective or actual quality; being a judgment usually made within a customer evoked set.
Service quality resembles an attitude in many ways, and service quality is distinct from customer
satisfaction. Traditional financial ratios are not appropriate for measuring the economic benefits
of service quality improvement.
13. According to Stellenbosch London March 12 - 2004State that the Measuring user
satisfaction with information systems has attracted widespread research attention, given it is
often used as an indicator of success. The Internet has allowed applications to be extended to
customers of an organization, where interaction can take place through a web site, typically from
home or office. The focus of attention with such applications is customer satisfaction. In this
research, a 21-item, 7-factor instrument developed to measure customer satisfaction with web
sites that market generic digital products and services was modified slightly, and then
empirically tested and validated in the context of Internet banking specifically. A 19-item, 5-
factor validated instrument emerged, the factors being Customer Support, Security, Ease of Use,
Transactions and Payment, and Information Content and Innovation. The difference in number
of factors as compared to the generic instrument was attributed to the unique nature of Internet
banking web sites. These and other findings are discussed in the paper, and their implications
examined.
14. According to Nan-Hong Lin, Wen-Chun Tseng, Yu-Chung Hung, David C. Yen
Tokyo March 9 2008State that the Soon after becoming a WTO member, Taiwan found the
internationalization and liberalization in the financial industry ushered its domestic banks into a
new era. In response to this global trend, all its banks strove to rely on customer relationship
management (CRM) to enhance customer value (CV). This study aims to probe further into the
connection between CV and CRM. A series of examinations revealed that (1) both functional
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and social value impact customer behavior directly and positively; (2) customer satisfaction
positively and directly affects customer loyalty; (3) a positive and direct relationship exists
between customer loyalty and customer behavior; and (4) the positive and significant
relationship between CV and customer behavior can be developed through mediators such as
customer satisfaction and customer loyalty. Consequently, banks should offer their customers
different services, products, and marketing channels to meet their diversified needs to cultivate a
win-win environment of CRM for both parties.
15. According to Alessandro Arbore and Bruno Busacca June 28 -2008 State that
The paper presents the results of an extensive study on the determinants of customer satisfaction
for a retail bank. In doing so, it uses a revised version of the traditional analyses based on
derived measures of attribute importance. The need for a revised methodology is prompted by
the insights of the two- and three-factor theories of customer satisfaction, such as Kano's
framework. Indeed, the evidence from 5000 customers of a prominent Italian bank confirms a
non-linear and asymmetric relationship between attribute performances and overall customer
satisfaction. The results from both a traditional and our revised approach are compared. While
this approach can be applied across different industries, it should not be assumed that the
numerical results presented in the paper apply to contexts with substantially different underlying
characteristics. General trends and implications for banking services are reported.
16. According to Pratap K.J. Mohapatra January 19 -2009 State that
The article examines whether service quality of Indian commercial banks increases customer
satisfaction that fosters customer loyalty. Data were collected from 350 valued customers of
scheduled commercial bank branches in Orissa (India). A questionnaire elicited information on
sociodemographic variables along with human, technical, and tangible aspects of service
quality, customer satisfaction, and loyalty. Results suggest that better human, technical and
tangible aspects of service quality of the bank branches increase customer satisfaction. Human
aspects of service quality were found to influence customer satisfaction more than the technical
and tangible aspects. Customer satisfaction furthers customer loyalty. Increase in service quality
of the banks can satisfy and retain customers. In the Indian banking sector, human aspects are
more important than technical and tangible aspects of service quality that influence customer
satisfaction and promote and enhance customer loyalty.
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17. According to Megha TriveditheEconomics times December 7 2009 (Page 7) State that
the
Customer satisfaction has become a major source of concern in retail banking business. With
exceptional progress in the establishment of banks in India, banks are increasingly interested in
retaining existing customers and targeting new customers. In this paper, it is proposed that
quality of service is an indicator of customer satisfaction. Measuring service quality involves
objective feedback about existing customers of ICICI bank with respect to their expectations and
services offered. Performance of a bank may be evaluated with regard to a set of satisfaction
parameters that indicate the strengths and weaknesses of an organization. Standard scale of
SERVQUAL developed by Parasuraman et al. has been used to conduct the survey. This study is
based on five overall dimensions of customer satisfaction with services provided by ICICI. The
five dimensions used to measure service quality are tangibility, reliability, responsiveness,
assurance and empathy. This study gives useful insights to boost customer satisfaction towardsICICI.
18. According to RajKumar the Hindu Aug 7 2008 State that
The banking industry like many other financial service industries is facing a rapidly changing
market, new technologies, economic uncertainties, fierce competition and more demanding
customers and the changing climate has presented an unprecedented set of challenges (1).
Banking is a customer oriented services industry, therefore, the customer is the focus and
customer service is the differentiating factors (2).
The banking industry in India has undergone sea change since post-independence. More
recently, liberalization, the opening up of the economy in the 90s and the government's decision
to privatize banks by reduction in state ownership culminated in the banking reforms based on
the recommendations of Narasimha Committee (3). The prime mover for banks today is profit,
with clear indications from the government to 'perform or perish'. Banks have also started
realizing that business depends on client service and the satisfaction of the customer (4) and this
is compelling them to improve customer service and build up relationship with customers.
With the current change in the functional orientation of banks, the purpose of banking is
redefined. The main driver of this change is changing customer needs and expectations.
Customers in urban India no longer want to wait in long queues and spend hours in banking
transactions. This change in customer attitude has gone hand in hand with the development of
ATMs, phone and net banking along with availability of service right at the customer's doorstep.
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With the emergence of universal banking, banks aim to provide all banking product and service
offering less than one roof and their endeavor is to be customer centric (5). With the emergence
of economic reforms in world in general and in India in particular, private banks have come up
in a big way with prime emphasis on technical and customer focused issues.
19. According to G. Mihelis6 Feb 2009 Commercial Bank of Greece states that Customer
satisfaction represents a modern approach for quality in enterprises and organizations and serves
the development of a truly customer-focused management and culture. Measuring customer
satisfaction offers an immediate, meaningful and objective feedback about clients preferences
and expectations. In this way, companys performance may be evaluated in relation to a set of
satisfaction dimensions that indicate the strong and the weak points of a business organization.
This paper presents an original customer satisfaction survey in the private bank sector. The
implemented m