133413005-project-on-bank-of-india.rtf

8/12/2019 133413005-project-on-bank-of-india.rtf

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INTRODUCTION OF BANKING SECTOR

Bank may be defined as a financial institution which is engaged in the business of

keeping money for savings and checking accounts or for exchange or for issuing loans and

credit etc. A set of services intended for private customers and characterized by a higher

quality than the services offered to retail customers.

Based on the notion of tailor-made services, it aims to offer advice on investment,

inheritance plans and provide active support for general transactions and the resolution of

asset-related problems. he essential function of a bank is to provide services related to

the storing of deposits and the extending of credit.

Basic function may include !redit collection, "ssuer of banking notes, #epositor of

money and lending loans.

$ow a #ays banking is not in its traditional way, with the advancement of

technology it%s focusing on more comfort of customer providing services such as&

' online banking

' investment banking

' electronic banking

' internet banking

' pc banking (mobile banking

' e-banking

he importance of banking sector is immense in the progress and prosperity of

any )tate or country.

*


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WHAT IS NATIONALISATION

$ationalisation is the process of taking an industry or assets into government

ownership by a national government or state. $ationalization usually refers to private

assets, but may also mean assets owned by lower levels of government, such as

municipalities, being transferred to the public sector to be operated and owned by the state.

he opposite of nationalization is usually privatization or de-nationalization, but may also

be municipalization.

A renationalization occurs when state-owned assets are privatized and later

nationalized again, often when a different political party or faction is in power. A

renationalization process may also be called reverse privatization. $ationalization has

been used to refer to either direct state-ownership or management of an enterprise or to a

government acquiring a large controlling share of a nominally private, publicly listed

corporation.

$ationalized industries, charged with operating in the public interest, may be under

strong political and social pressures to give much more attention to externalities. hey

may be obliged to operate some loss making activities where social benefits are clearly

greater than social costs + for example, rural postal and transport services. As an

instance, the nited )tates ostal )ervice is guaranteed its nationalised status by the

!onstitution. he government has recognized these social obligations and, in some cases,

provides subsidies for such non-commercial operations.

$ationalization may occur with or without compensation to the former owners. "f it

takes place without compensation it is a case of expropriation. $ationalization is

distinguished from property redistribution in that the government retains control of

nationalized property. )ome nationalization take place when a government seizes property

acquired illegally. or example, in */01 the rench government seized the car-

makers 2enault because its owners had collaborated with the $azi occupiers of rance

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FUNCTIONS OF BANKS IN INDIA

he economic functions of banks include&

1. Issue of money-

"n the form of banknotes and current accounts sub4ect to check or payment at the

customer%s order. hese claims on banks can act as money because they are negotiable

or repayable on demand, and hence valued at par. hey are effectively transferable by

mere delivery, in the case of banknotes, or by drawing a check that the payee may

bank or cash.

2. Ne!n" #n$ se%emen of ymens '

banks act as both collection and paying agents for customers, participating in interbank

clearing and settlement systems to collect, present, be presented with, and pay payment

instruments. his enables banks to economize on reserves held for settlement of

payments, since inward and outward payments offset each other. "t also enables the

offsetting of payment flows between geographical areas, reducing the cost of

settlement between them.

(. C)e$! !ne)me$!#!on '

Banks borrow and lend back-to-back on their own account as middle men.

*. C)e$! +u#%!y !m&)o,emen '

Banks lend money to ordinary commercial and personal borrowers 5ordinary credit

quality6, but are high quality borrowers. he improvement comes from diversification

of the bank7s assets and capital which provides a buffer to absorb losses without

defaulting on its obligations. 8owever, banknotes and deposits are generally

unsecured9 if the bank gets into difficulty and pledges assets as security, to raise the

funding it needs to continue to operate, this puts the note holders and depositors in an

economically subordinated position.:


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. #u)!y )#nsfo)m#!on '

Banks borrow more on demand debt and short term debt, but provide more long term

loans. "n other words, they borrow short and lend long. ;ith a stronger credit qualitythan most other borrowers, banks can do this by aggregating issues 5e.g. accepting

deposits and issuing banknotes6 and redemptions 5e.g. withdrawals and redemption of

banknotes6, maintaining reserves of cash, investing in marketable securities that can be

readily converted to cash if needed, and raising replacement funding as needed from

various sources 5e.g. wholesale cash markets and securities markets6.

/. oney 0)e#!on ';henever a bank gives out a loan in a fractional-reserve banking system, a new sum of

virtual money is created.

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HISTOR OF BANK OF INDIA

revious banks that used the name Bank of "ndia&

At least three banks having the name Bank of "ndia had preceded the setting up of the

resent Bank of "ndia.

*. A person named 2amakishen #utt set up the first Bank of "ndia in !alcutta

5now


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he first board of directors of the bank consisted of )ir )assoon #avid, )ir !owas4ee

ahangir, . !owas4ee ahangir, )ir rederick >eigh !roft, 2atan4ee #adabhoy ata,

Gordhandas alubhai )amaldas, ondon, the first "ndian bank to do so.

his

;as also the first post-;;"" overseas branch of any "ndian bank.

. "n */1 Bank of "ndia opened branches in okyo and Fsaka.

. "n */1* Bank of "ndia opened a branch in )ingapore.

. "n */1: Bank of "ndia opened a branch in


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now $ational Bank of Hemen. Bank of "ndia was the only "ndian bank in the

country.

. "n */D3 Bank of "ndia sold its ganda operation to Bank of Baroda.

. "n */D:Bank of "ndia opened a rep in akarta.. "n */D0 Bank of "ndia opened a branch in aris. his was the first branch of an

"ndian bank in Curope.

. "n */D? he $igerian government acquired ?I of the shares in Bank of "ndia

5$igeria6.

. "n */D= Bank of "ndia opened a branch in $ew Hork.

. "n */Ds Bank of "ndia opened an agency in )an rancisco.

. "n */= BA$< F "$#"A 5$igeria6 >td, changed its name to Allied Bank of$igeria.

. "n */=? Bank of "ndia acquired aravur !entral Bank 5


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ISSON AND ISSION OF THE BANK OF INDIA

Fur @ission

Kto provide superior, proactive banking services to niche markets globally, while providing

cost-effective, responsive services to others in our role as a development bank, and in so

doing, meet the requirements of our stakeholdersK.

Fur Eision

Kto become the bank of choice for corporate, medium businesses and up market retail

customers and to provide cost effective developmental banking for small business, mass

market and rural marketsK

=


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INTRODUCTION OF BANK OF INDIA

Bank of "ndia 5B)C& BF"6 is a state-owned commercial bank with headquarters

in @umbai. Government-owned since nationalization in */?/, it is "ndia7s 0th largest )

bank, after )tate Bank of "ndia, un4ab $ational Bank and Bank of Baroda. "t has 0*1D

branches as on 3*(0(3*3, including 3/ branches outside "ndia, and about *?D/

A@s. BF" is a founder member of );" 5)ociety for ;orldwide "nter Bank inancial

elecommunications6, which facilitates provision of cost-effective financial processing

and communication services. he Bank completed its first one hundred years of operationson D )eptember 3?.

he Bank was under private ownership and control till uly */?/ after that bank

become nationalized along with *: other banks. At beginning with one office in @umbai,

with a paid-up capital of 2s.1 lakh and 1 employees, the Bank has made a rapid growth

over the years and blossomed into a mighty institution with a strong national presence and

sizable international operations. "n business volume, the Bank occupies a premier position

among the nationalized banks.

/


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2F">C F BA$< F "$#"A

!ompany $ame & Bank of "ndia

Address &hane branch,

)hiva4i path,

hane 5w6

0 ?3in &

hone no & 33-

>evel of Fffice & Branch office

;ebsite & www.bankofindia.com

"ndustry & inancial services

!ity & hane

)tate & @aharashtra

!ompany ype & ublic 5B)C& BF"6

)ector & ublic sector

*


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CA3ITAL STRUCTURE OF BANK OF INDIA

3e)!o$ Ins)umen Au4o)!5e$ Issue$ - 3 A I D U 3 -

C#&!#% C#&!#%

F)om To 6Rs. 0)7 6Rs. 0)7 S4#)es 6nos7 F#0e C#&!#%

#%ue

3** 3*3 Cquity )hare : 1D0./? 1D:D=:D * 1D:.D=

3* 3** Cquity )hare : 10D.?? 10?0=:D * 10?.0=

3/ 3* Cquity )hare : 13?.:1 131*D11 * 131.*=

3= 3/ Cquity )hare *1 13?.:1 131*D1: * 131.*=

3D 3= Cquity )hare *1 13?.:1 131*D0= * 131.*D

3? 3D Cquity )hare *1 0==.1= 0=D0*= * 0=D.0

31 3? Cquity )hare *1 0==.1= 0=D03 * 0=D.0

30 31 Cquity )hare *1 0==.1= 0=D://? * 0=D.0

3: 30 Cquity )hare *1 0==.1= 0=D:/== * 0=D.0

33 3: Cquity )hare *1 0==.1= 0=D:/0D * 0=D.:/

3* 33 Cquity )hare *1 0==.1= 0==1= * 0==.1=

3 3* Cquity )hare *1 ?:/ ?:/ * ?:/

*/// 3 Cquity )hare *1 ?:/ ?:/ * ?:/

*//= */// Cquity )hare *1 ?:/ ?:/ * ?:/

*//D *//= Cquity )hare *1 ?:/ ?:/ * ?:/

*//? *//D Cquity )hare *1 ?:/ ?:/ * ?:/

**


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T3ES OF DE3OSITS

)AE"$G #CF)"

Cveryone wants to save for something in the future and also that everyone wants

their savings to be safe and accessible anytime, anyplace to help meet their needs.

)o bank of "ndia brings to us the )aving Account, which helps us to plan and save

for our future financial requirements. Fur savings are completely liquid, and earn

competitive interest in our safety. his is a normal, General )aving Bank A(c which

all the banks offer. 8owever, following are the below mentioned benefits attached

;ith this A(c.

Benefits of )aving Account&

*6 "n this A(c bank offers ree A@ cum #ebit !ard which will allow us to access

the widest network of across the country to withdraw cash, enquiry about

balance etc.

36 ransact at convenience, saving time and cost through the largest distribution

network in "ndia of more than thousands of A@s or through bank of "ndia

internet banking.

:6 ree personalized cheque book for that customer has to maintain some balance.06 Account holders are also offered free phone banking facility with this account.

By which they can also operate certain functions through their phone.

16 he Account holders are also offered free $et Banking facility with the account,

by which they can operate their account through their computers. his has made

banking complete easy and hassle free.

*3


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"LC# #CF)"

he term KfixedK in fixed deposits denotes the period of maturity or tenor. ixed #eposits,

therefore, presupposes a certain length of time for which the depositor decides to keep the

money with the bank and the rate of interest payable to the depositor is decided by this

tenor. he rate of interest differs from bank to bank .his, however, does not mean that the

depositor loses all his rights over the money for the duration of the tenor decided. he

deposits can be withdrawn before the period is over. 8owever, the amount of interest

payable to the depositor, in such cases goes down 5usually *I to 3I less than the original

rate6. @oreover, as per 2B" regulations there will be no interest paid for any premature

withdrawals for the period *1 days to 3/ or *1 to 01 days as the case may be.

Fther than banks, there are non-banking financial companies and companies

who float schemes from time to time for garnering deposits from the public. "n the recent

past, however, many such schemes have gone bust and it is very essential to look out for

danger signals before putting all your eggs in one basket. @ode of calculation of "nterest

on )hort #eposits and ixed #eposits for periods less than *3 months.

a. )hort #eposits 5Fn deposits repayable within six months6

"n case of short deposit "nterest rate is paid for the actual number of days on the

basis of :?1 days in a year.

b. ixed #eposits 5Fn #eposits repayable after six months6

o "nterest is calculated for the completed months.

o "f the terminal month is incomplete- the actual number of days on the basis of

:?1 days in a year interest is calculated.

*:


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2C!22"$G #CF)"

2ecurring deposit account is generally opened for a purpose to be served at a future date.

Generally opened to finance pre-planned future purposes like, wedding expenses of

daughter, purchase of costly items like land, luxury car, refrigerator or air conditioner, etc.2ecurring deposit account is opened by those who want to save regularly for a

certain period of time and earn a higher interest rate. "n recurring deposit account certain

fixed amount is accepted every month for a specified period and the total amount is repaid

with interest at the end of the particular fixed period. he bank provides loan facility to

recurring deposit holders up to D1I of the amount standing to the credit of the account

holder.

nder this deposit any person can open an account 5"ndividuals, 4oint accountsincluding minors also6. #epositor also gets the facility of nomination. @inimum amount of

monthly installment is 2s. *(- and maximum amount of monthly installment is 2s.

*,(- . @inimum recurring period is*3 months and @aximum period is* years. 5"n

multiples of : months only6. 2ate of interest is applicable as per period for which the A(c

is opened. @aturity value is calculated by the )ystem, depending on the amount of flexi

installments.

*0


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!22C$ A!!F$

!urrent account can be opened in any bank it can be co-operative bank or commercial

bank or in nationalized banks. !urrent account, amount can be deposited and withdrawn at

any time without giving any notice. "t is also suitable for making payments to creditors by

using cheque. !heque received from customers can be deposited in this account forcollection

8enef!s o 4e 0u))en #00oun 4o%$e)9

. he main ob4ective of current bank account is to enable the businessmen to conduct

their business transactions smoothly.

. here is no restriction on the number and amount of deposits. here is also no

restriction on the withdrawals.

. Generally bank does not pay any interest on current account. $owadays, some

banks do pay interest on current accounts.

. !urrent account is of continuing nature and as such there is no fixed period.

. he businessmen can make direct payment to their creditors with the help of

cheques.

. he bank collects money on behalf of its customers and credits the same to their

accounts.

. !urrent account enables the account holder to obtain overdraft facility.

. he creditors of the account holder can get credit-worthiness information of

the account holder through interbank connection.

*1


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$2"s #CF)" )!8C@C

$on 2esident "ndians 5$2"s6 have a choice of two schemes for depositing their savings

with Bank of "ndia.

oreign !urrency $on 2esident 5!$26 accounts.

$on-2esident Cxternal 5$2C6 accounts.

1. Fo)e!"n Cu))en0y Non Res!$en 6FCNR7 #00ouns

his account is mainly short deposit scheme starts from *3 months to 1 years. Fnly

2"s can open their account. hey have facility of opening 4oint account with other

2"s and also with resident from "ndia. hey also have nomination facility available to

them. heir currency can converted into any countries currency.5 )#, GB, !A#,

A2, H,C26

2. Non-Res!$en E:e)n#% 6NRE7 #00ouns

his account is mainly current or saving or term deposit scheme starts from *3 months

to D years. Fnly $2"s can open their account. hey have facility of opening 4oint

account with other $2"s and also with resident from "ndia. hey also have nomination

facility available to them. hey only convert their currency with "ndian 2s. Fnly.

*?


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T3ES OF CARDS

DEBIT CARD

Bank of "ndia provides debit card facility to its customers. !ardholders have the choice of

applying for Bank of "ndia )tar links #ebit cum A@ card or BF" Global #ebit cum

A@ card 5@aster!ard6. BF" Global debit cum A@ card is presently available to

accountholders in $etworked branches only.

. #ebit cum A@ card can be used to book tickets on "2!! website 5ransaction

charges 2s* in addition to ticket payment and "2!! charges6.

. #ebit cum A@ card is also accepted on billers ( merchant%s websites to make

online payments under the #ebit card option, if KBF" #ebit cum A@ cardM is

displayed as one of the payment option. he person who have )atisfactory running

)B, !urrent, Fverdraft Accounts Fperated upon singly 5"n t. Accounts N Anyone to

operate6."n case of )#C$, who have completed *1 years of age and operate

their )B A(c. themselves 5not through guardians6. "n this case, the card is usable

only in A@s, to avail the debit card facility balance for saving a(c is 1and for

current ac it is 1.

Facilities offered to customers

. ;ithdrawal of !ash up to 2s.*1, (- per day.

. Balance enquiry

. #eposit of !ash O !heques at A@ with depositories A@s6

. )tar )andesh 5)@)6 is sent free of charges on all #ebit transactions through A@.

. ransfer of balances among the accounts attached to the !ard 5only on site A@6.

. @ini statement of last 1 transactions for any a(c. attached to the card.

*D


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CREDIT CARD

!orporate !ards are All !redit !ards can be issued as !orporate 5!ompanies, artnership

O proprietorship firms and 2egd. institutions()ocieties6 having net profit in two years of

the preceding three financial years, and having banking accounts with them. >imits&

Fverall !redit 5spending6 limit to !orporate shall not exceed 3I of its net profit as per

latest financial statement, within which sub limits shall be assigned to its Cxecutive (

Cmployees as per corporate request. $o add on cards will be allowed to Cxecutives (

Cmployees on !orporate !ards $o. of !ards per !orporate& any number of cards can be

issued to Cxecutives(Cmployees as per request. Cach card shall be sub4ect Annual

fee(charges.

Exceptional Convenience and financial benefits no other Cards offer

. !hoice of !harge or !redit

!hoice of branch billing 5auto debit6 or direct !ardholder will have the choice of

paying the bills directly or through a debit to his designated charge account with any

of our branches.

. @ode of Billing and dispatch

Billing is done monthly and the bills 5!redit !ard statement6 are mailed to the

!ardholders by ordinary post.. >owest )ervice !harges

2evolving !redit at preferential rate of *.DI per month 5A2& 33.01 I per annum

on daily balances6 on cards where minimum payment is made by due date is

provided which is one of the lowest in industry.

. $o Cntrance ee

Fur credit cards are issued without any entrance fee.

. >owest @embership eeAll the exceptional features are available at a nominal membership fee, which is

lowest in the industry. ;e do not believe in charging for services not availed

. "nterest ree eriod&

An interest free period ranging from 3* to 1* days is available depending upon the

date of purchase and date of billing.

*=


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. reedom of withdrawing cash at branches

!ardholder can withdraw !ash against limits prescribed on their cards from any of

the 31 plus branches spread throughout the country.

. hrough A@speople get the privilege to access / A@s in "ndia and over =.* laky A@s

across the Globe where E")A(@aster!ard !ards are accepted round the clock. !an

also with draw cash at all BF"(@aster!ard(E")A(!ash tree(Bancs A@s.

. Casy ay )cheme

!ardholder can convert his purchases above 2s.1, (- by 4oining this scheme and

pay the outstanding in Cquated monthly instalments of 30(:? instalments at a rate of

interest of *.1I monthly. or details refer sers guide available on request.. Add-Fn cards

!ardholder has the freedom to apply for two add-on members on his !ard. resently

add-ons are allowed for cardholder7s spouse, children, brothers, sisters and parents

at lower membership fees.

"n credit card there are different types of cards&

1. In$!# 0#)$- #%ue fo) money

his card is operates only in "$#"A and $epal. )alaried O )elf employed"ndividuals with Annual income of 2s D1,(- and above can avail of this card.

)pending limit is 3 per cent of annual income 2s.*1, (- and maximum 2s.1,

(-55higher spending limits will be at the discretion of the Bank sub4ect to proof

of income6. !ash ;ithdrawal limit is up to 1 I of the spending limit as above

.@aximum !ash 2s.*1, (- per day

2. T#; &)em!um 0#)$ 6 m#se) 0#)$7

)alaried O self employed "ndividuals annual "ncome of 2s *1,(- and above canAvail of this card. )pending limit is 3 per cent of annual income, minimum limit is

2s :,(- maximum 2s.*, (- 5higher spending limits will be at the discretion

Ff the Bank, sub4ect to proof of income6

Benefits(features&

*/


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@onthly billing hoto cards 2evolving !redit at *.D percent per month 5A2&

33.01 I per annum on daily balances6"nterest free credit period maximum up to 1* days

!ash advance facility lexible credit limit for add-on cards Casy pay scheme Balance

ransfer 2eward programme on !ard usage.:. Gold !ard E")A

his card is operates only in "$#"A and $epal. )alaried O )elf employed

"ndividuals with Annual income of 2s *, 1,(- and above can avail of this card.

)pending limit is 3 per cent of annual income 2s.:, (- and maximum 2s.3,

,

Benefits(features&

Billing& Billing is monthly with revolving credit facility.

ree !redit eriod& !ardholders will be benefited by a free credit period of 3* days

to 1* days.

)ervice !harges& 2evolving !redit at *.D percent per month 5A2& 33.01I per

!ash advance& annum on daily Balances6. !ardholder can withdraw up to 1I of

8is total spending limit sub4ect to 2s.*1, (- per day from any of the 31 plus

Branches of the Bank. !ash withdrawals are sub4ect to cash withdrawal

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T3ES OF LOANS 3ROIDED B BANK OF INDIA

". 2CA"> >FA$)*. 8ome loan

urpose( eligibility

. o purchase or to construct house on ownership basis.

. o renovate( repair existing house.

. o purchase a plot of land.

Puantum of loan

urpose @ax. limit Q in lacksR

!onstruction ( purchase of house or flat

a. At metros 5 @umbai( #elhi etc6 1

b. At other places :

or purchase of plot *

or renovation( repairing of house or flat 1

urnishing of house or flat 1

)ecurity

Cquitable mortgage& first charge of flat( house ( land proposed to be financed is to be

obtained

F2>egal mortgage& in case of unavailability of title deeds legal mortgage is created after

getting the approval from the zonal manager.

Guarantee

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. hird party guarantee is not required when legal mortgage is available before or at

the time of disbursement, itself.

. "n other cases guarantee is required of person whose income is equal to the

borrower may be obtained after ensuring disposable income is sufficient to repayloan in case of need.

2epayment

articular 2epayment period )anctioning authority

or new construction ( 2epayment period is 3 years$ormal )anctioning

purchase of house. including moratorium periodauthority

of *= months.

or 3nd purchase 2epayment period is 3 years $ormal )anctioning

authority

or renovation 2epayment period is * years $ormal )anctioning

including moratorium periodauthority

of ? months.

or new construction 31 years including Cxtension of repayment

moratorium period of :? period by zonal manager O

months. sanction is done by

delegated authority

@argin

@argin is calculated separately on pure cost of house which excludes other items like

stamp duty, registration charge, document charge O other charge to ensure that margin or

loan to value 5>E6 ratio.

Amount of loan >E ratio or margin

p to 3 lacks @argin is *I

@ore than 3 lacks @argin is 3I

2ate of interest base rate is decided by 2B".

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p to 1 years Above 1 years Above * years Above *1 years

up to * years up to *1 years up to 3 years

p to 31 Base rate Base rate .31I on Base .31I on Base

lacks rate rateAbove 31 .31I on Base .1I on Base .D1I on Base *I on Base

lacks up to rate rate rate rate

D1 lacks

Above D1 .D1I on Base *I on Base rate *.31I on Base *.1I on Base

lacks rate rate rate

Bank charges

a. #ocumentation charges& Fne time charges are 2s.*, .

b. Administration charges & $il

c. !ommitment charges& $il

d. Fther charges& charges for search and title clearance report, valuation report, vetting

of documents to be covered at actual.

e. rocessing charges

or individuals

or loans up to 2s. 31 lacks Fne time flat minimum 2s. 0, O

maximum 2s.*,

Above 2s.31 lacks up to 2s. D1 lacks Fne time flat 2s. 3,

Above 2s.D1 lacks up to 2s. : lacks Fne time flat 2s. 31,

Above 2s. : lacks Fne time flat 2s. 1,

or corporate O partnership firms !harges are double that of individual

or rural areas !harges are D1I that of individuals

3:


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2. EDUCATION LOAN

Cligibility

"$ "$#"A

. Graduation courses like BA, B.!om, and B.sc etc 5recognized by university6.

. ost graduation courses like masters O h# 5recognized by university6.

. rofessional courses like engineering, medical, agricultural, law, management,

veterinary etc 5approved by Government of "ndia6.

. !ourses like "!;A, !A, !A etc.

. #egree( #iploma courses .

A. F)"#C "$#"A

. Graduation& for 4ob oriented professionals offered by state funded university.

. ost graduation courses like @!A, @BA, @) by state funded university.

. #egree( #iploma courses like aeronautical pilot training( shipping etc.

. he student O his parents should be "ndian.

. )tudent should not have any outstanding education loan from any other institution.

. he student must have specified percentage for&

General category- ?I

)( $( FB!- 1I

. "f the admission is secured under management seat then percentage are

General category- 1I

)( $( FB!- ?I

. @aximum amount of loan given is

)tudent of "ndia- 2s.*, ,

)tudent outside "ndia- 2s. 3, ,

)ecurity

. p to 0 lacks- no security

. Above 0 lacks up to D.1 lacks- collateral security is required in the form of third

party guarantee.30


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. Above D.1 lacks- tangible collateral security of suitable value acceptable by bank.

Assignment of future income of the student for payment of instalments

2epayment

he actual repayment of installment begins after course period S * year or ? months after

getting 4ob whichever is earlier. "f a person paid the entire amount of loan before the

repayment period then the interest will be charged on

. >oan up to D,1,- up to D years

. >oan above D,1,- up to * years

@argin

Amount of loan urpose margin

p to 0 lacks study in "ndia or Abroad $il

Above 0 lacks )tudies in "ndia 1I

)tudies in abroad *1I

2ate of "nterest

2ate of interest is linked to base rate, on floating basis.

Amount of loan 2ate p.a T monthly

basis

>oans up to D.1 lacks :I above base rate

>oans above D.1 lacks 3.1 I above base rate

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Bank charges

$o processing charges for studying in "ndia

or study abroad charges are 2s. *(-

p to 0 lacks 2s. 1(-Above 0 lacks O up to D.1 lacks 2s. *1(-

Above D.1 lacks 2s. :(-

"nsurance

Bank offers insurance from )A2 $"F$ #A""!8" >"C "$)2A$!C !F. >#. he

policy is obtained at the option of student.

3?


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:. E"#HA >FA$

Cligibility

. )tudent should be "ndian national.

. )ecured admission through entrance test in educational institution in "ndia.

!ourses covered

. All #egree(#iploma courses and not certificate or part time courses.

Cxpenses covered

. ees payable to college or hostel and examination fees.

. urchase of books, equipments.

. ravel expenses, library fees and other fees related to education.

Amount of loan

his loan is given to study only in "ndia and maximum loan offered is 2s. *1 lacks

#epends on institution.

>ist A 2s. *1 lacks>ist B 2s. * lacks

>ist ! 2s. D.1 lacks

)ecurity

. $o collateral security is required.

. hird party guarantee is required when loan amount is above 0 lacks.

2epayment

@aximum repayment period is D years and moratorium up to course period with

additional ? months.

3D


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@argin

p to 2s. 0 lacks $il

Above 2s. 0 lacks 1I

2ate of interest

2ate of interest is 3I above base rate.

3=


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0. EC8"!>C >FA$

Cligibility

Age of individual should not be more than ?1 years at the time of availing loan.

2esident )alaried employees, professionals, self Cmployed

businessman, senior citizens, ensioners etc.

$on-resident >oan is provided 4ointly with resident "ndian 5close

relatives6.

Cntities roprietary concern, partnership firm, other !ompanies.

urpose of loan

. o purchase new two( four wheeler.

. o purchase second hand two( four wheeler age of vehicle should not be more than

: years.

Puantum of loan

2esident 5individual6 or "ndian make vehicles - 2s. 31 lacks

or imported vehicles N 2s. D1 lacks

non- resident 2s. 31 lacks

!ompanies 2s. *carore

$on- conventional energy vehicle or 3 wheelers N 2s. 1,

or 0 wheelers N 2s. 0 lacks

)ecurity

. rincipal amount- hypothecation of assets purchased out of bank finance

. "nsurance of vehicle with bank clause.

. !harge to be registered with 2F.

Guarantee

3/


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. hird party guarantee is not required in respect of loan to resident individuals

up to 2s. 31 lacks if vehicle is registered with 2F.

. hird party guarantee can be changed by sanctioning authority in case of

corporate.. hird party guarantee is required if vehicle is not registered with 2F and

loans to individuals for limit exceeding 2s. 31 lacks.

2epayment

. or individuals 5new vehicle6

3 wheelers - 1 years.

0 wheelers -D years.

. or corporate or firm - maximum 1 years.

. or second hand vehicle N maximum : years.

@argin

. or individual 5including $2"6 for new vehicle

p to 2s. 3 lacks 1I

Above 3 lacks up to * lacks *I

Above * lacks up to 31 lacks *1I

Above 31 lacks 3I

. or corporate or firms- minimum 31I

. or second hand vehicle- minimum :I

2ate of interest

ypes of vehicle 2ate of interest

3(0 wheelers )cheme limit

$ew vehicle repayment op to : *.D1I above base rate

years

:


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$ew vehicle repayment after : 3.31I above base rate

years

)econd hand vehicle 3.31I above base rate

rocessing charges

. or individuals

>oan up to 31 N 2s. *(-

>oans above 31 up to 31 lacks N minimum 2s. 3(- O maximum 2s. *(-

>oans above 31 lacks N 2s. 31(-

. or corporate

rocessing charges are double as applicable to individual in case of corporate.

$ote& rocessing charges are different for senior citizens, staff, retired employee of

bank and pensioner.

:*


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1. C$)"$C2 >FA$

argeted customers

. 2egular pensioners or family pensioners drawing regular monthly pension through

the branch

. Cmployees 5other than dismissed ( compulsorily retired6.

urpose of loan

. nsecured loan&

. o meet medical expenses or marriage expenses or education expenses related to

education of his own( spouse( children or near relatives.

. or repairing or renovation of existing house 5where equitable mortgage charge over

the property cannot be created in favour of bank and proponent has not raised the

loan against such property from any Bank or inancial "nstitution or $B!%s etc.

. Any other expenses of bonafindenture .

. )ecured loan&

. 2epayment of current housing loan from any Bank or inancial "nstitution or

$B!%s etc.

. urchase of consumer durables or computers or professional equipments etc.

5"n case of clean(unsecured loan, an undertaking to be obtained from the borrower

stating that the loan has been utilized for the purpose declared. "n case of secured

advances, appropriate proof(bills(receipts for expenses incurred to be obtained.6

Puantum of loan

. or regular pensioner

. nsecured loan&

@aximum amount of loan given is 2s. * lacks 5* times of monthly pension6

. )ecured loan&

@aximum amount of loan given is 2s. * lacks 53 times of monthly pension6.

he pensioner whose age is above ?1 years will get maximum loan amount of

2s.:3


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1,.

. or family pensioner

. nsecured loan&

@aximum amount of loan given is 2s. 1, 5* times of monthly pension6. )ecured loan&

@aximum amount of loan given is 2s. 1,53 times of monthly pension6.

he pensioner whose age is above ?1 years will get maximum loan amount of

2s.

1,.

2epayment

. or unsecured loan

@aximum repayment period is : years with effect from one month after

disbursement in exceptional cases repayment period will be extended up to 1 years.

. or secured loan

@aximum repayment period will be extended up to 1 years with effect from one

month after disbursement.

2ate of interest

ully secured loans :.D1I above base rate

nsecured loans 0.31I above base rate

)enior citizens 5age above ?6 5or loan up to 2s.1, 6 :I above base

rate.

rocessing charges

. $o processing charges for senior citizen whose age is above ? years.

. or others one time T 3I of loan amount, @in. 2s.1(- and @ax.2s.3(-

. )tamp aper charges at actual. >oan Agreement !opy charges as applicable.

::


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?. GF># >FA$

Cligibility

. "ndividuals 5except goldsmith, 4ewel appraisers and their close associates6 who

maintained )B(!# account with branch are eligible.

. "n case of new customer, the account is opened after full compliance of


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or overdraft ( cc& interest is charged.

or term loan( demand loan& maximum repayment period is :? months.

2ate of interest

3.D1I over base rate presently *:.31I p.a. including tenor premium.

"n case of advances given to agriculture or )@C sector applicable rate of interest

"s advised by head office from time to time.

"nsurance

Gold ornaments, articles, coins pledged with bank under the scheme are covered

nder general indemnity insurance policy.

rocessing charges

or loan up to * lack & $il.

Above 2s. * lack & * per lack.

Fther charges

#ocumentation charges& $il

!ommitment charges& $il

"nspection charges& $il

8andling charges& $il

Ealuation charges

2s. er :(- thousand minimum 2s.1 and maximum 2s.: per valuation.

:1


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D. C2)F$A> >FA$

urpose

. )tar ersonal >oan )cheme provides loan to meet various ersonal requirements of

customers and their family.

. Bank offers loans for marriage expenses, medical expenses, educational expenses,

purchase of consumer durables etc. @aximum quantum of advance is 2s.*. lakhs,

depending upon the income, with very attractive interest rate and easy repayment plan.

Cligibility

)alaried employees, rofessionals and individuals with high net worth, regular pensioners

or family pensioners drawing regular monthly pension through Branch, )taff members,

retired employees 5other than dismissed(compulsorily retired6 of their Bank

Puantum of loan

or unsecured loan

. @inimum 2s. 3,,

. @inimum size of loan for @etro and rban !entres is 2s.*,(-

. At 2ural and )emi rban centres there $o minimum size of loan.

or secured loan

. @inimum 2s. *,,

. @inimum size of loan of @etro and rban !entres & 2s.*,(-

. At 2ural and )emi rban centres there $o minimum size of loan.

)ecurity

. Cquitable(>egal @ortgage of commercial or residential properties. 8ypothecation

charge on assets acquired.

. !ollateral security in the form of pledge of gold(gold ornaments, $)!( "ndira Eikas

atra, Bonds, Assignment of >"! policies, 2elief Bonds etc:?


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2epayment

or unsecured loan

:? Cquated monthly instalments with effect from one month after first disbursement.

Cxceptional cases up to ? months.

or secured loan

@aximum ? Cquated monthly instalments with effect from one month after first

disbursement from loan account.

2ate of interest

or secured loan

1.I above Base 2ate. "nterest concession to women - .1I QAll borrowers to be

womenR or )enior !itizens N :I above B2. inancing secured under tie- up arrangement

N 0I above B2.R

or secured loan

0.I above Base 2ate. "nterest concession to women - .1I QAll borrowers to be

womenR

rocessing charges

Fne time T *.*I of loan amount @in. 2s.*(- and @ax. 2s.1(-

ensioners& Fne time T *.*.I of loan amount, min. 2s. 1(- and max. 2s. *,*(-.

$o processing charges for )enior !itizens 5? years O above6

Fther charges

)tamp charges for documents & At actuals

:D


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"". 2A#C B">>)

B">> "$A$!C

Bank of "ndia offers finance against commercial bills in addition to collection services at

competitive rates. inance is available to all their existing customers as well as new

customers. he finance is available against both demand and usance bills as well as

secured and clean bills. ;ith all important branches networked, the realization of bills

will be faster. "f the bills are drawn under letters of !redit opened by rime Banks, the

interest rate would be much less.

BA$< GA2A$CC

Bank of "ndia, issues Bank Guarantees, on behalf of their customers, in favour of third

parties like Government #epartments, ublic- )ector Frganisations, etc.

Bank of "ndia issues both types of Guarantees viz. erformance Guarantee and inancial

Guarantee.

he type of Guarantee, track record of customers and their financial position are the

guiding factors in deciding the Guarantee limit, security and margin.

:=


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INNOATIE SERICES OF BANK OF INDIA

*. @obile Banking )ervice

Bank of "ndia%s )tar connect @obile Banking )ervice, is a state of the art facility,

which allows us to do virtually all our banking activities from our mobile device. ;ith

)tar !onnect @obile Banking we can access all our banking accounts with the Bank, 30

hours a day, and :?1 days a year, from anywhere.

)ome features of mobile banking are&

. Banking transaction details,

. Eiewing of Account Balance,

. @ini )tatement, )tatement,

. )elf ransfers,

. hird arty ransfer of funds,

. tility Bill payments,

. icket booking features.

his services makes our banking activities most convenient. Bank of "ndia in

tie up with @(s m!hek "ndia ayment )ystems rivate >td and @(s laymate to extend

@obile ayments to all 2etail Banking customers.

0


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3. "nternet Banking )ervices

Bank of "ndia%s )tar !onnect "nternet Banking )ervice, is a state of the art facility,

which allows us to do virtually all our banking activities from comforts of our home(

office over a mouse click. ;ith )tar !onnect "nternet Banking )ervices we can access all

our banking accounts with the bank, 30 hours a day, :?1 days a year, from anywhere in the

world.

)ome features of internet banking are&

. your banking transaction details,

. viewing( printing of account statement,

. transferring funds,

. third party payments,

. tax payments,

. utility bill payments,

. icket booking, etc.

0*


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:. )tar )hare rade 5Fnline )hare rading6

Bank of "ndia brings to us an easy, transparent, hassle free and speedy way to trade

in a large number of listed securities. $o hassle of visiting the Brokers or Bank Branch.

ust by click of a mouse or contacting the brokers over phone can execute rade.

Bank facilitates rading in securities through ie up arrangement with the

following Brokers. "n terms of this arrangement, )B(!# account, #C@A Account is

maintained with Bank of "ndia. rading Account would be with the ie up Brokers and the

funds()hares are transferred to the Bank of "ndia account of the customers on the payout

day. )ome of account holders are eligible to enroll for the online share rading 5F>)6

facility are "ndividuals - single or 4oint account. $2"s, "Fs, roprietor, artners, rusts,

body corporate, etc. he on-line trading clients should have their designated Bank account

5to which the amounts for buy and sell of shares would be debited(credited6 with one of

the Bank of "ndia Branches. he clients should have a #C@A account with Bank of

"ndia $)#> #F or !#)> #F. Fnline )hare rading facility is available to clients of

all our Branches having )B, !# or F# Account also a #C@A account also with Bank of

"ndia. nder the concept of : in * Account 5)tar )hare rade6 the Banking Account,

#C@A Account and rading Account of the customers are integrated to make our

transactions transparent(seamless. or the customers who have availed the facility of )tar

)hare rade, unds()ecurities are automatically transferred to their account with Bank of

"ndia. here is no need to handover separate #") or any other "nstructions. hose

customers who do not have #C@A account with BF" may open the same and thenintegrate the same with )B and rading Account. !ustomers may open as many as

#C@A Account they wish. here is no restriction on number of #C@A Accounts to be

opened. !harges for opening a rading Account is presently 2s. 1(- details of which are

as under&

)tamp duty for Agreement come "ndemnity come ower of Attorney

03


43/56

for Fnline rading account 2s. 0 U

@iscellaneous !harges5Fne time charges6 2s. *

To#% 1

Brokerage charged by the Brokers on Buy()ell transactions is presently .1I on deliverybased transactions and is .DI on "ntra-#ay transactions.

acilities available are&

. #elivery based rading.

. "ntraday )quare off Buy oday and )ell omorrow 5B)6

. rade @ultiple.

. Access to 2esearch and 2eports.

. 2ecommendations available on each rading #ay over phone(Cmail "ntroducing

uture and Fptions through the ie up Brokers tie up arrangement shortly.

0. BF" )A2 C-ay

"s a useful service that provides us a single point of contact for all our payment

needs. At BF" )A2 C-ay we can pay our bills and make other payments online. "nstead

of writing a cheque each time, now we can use any device connected to the "nternet

5computer, kiosk, etc6 and make payments with the click of a mouse. "n effect, through

BF" )A2 eay we can now make all our ayments at a )ingle >ocation, anytime we

wish to.

!urrently BF" )A2 eay is available in the cities of Ahmadabad, Bangalore,

Bhopal, !hennai, #elhi, 8yderabad, "ndore, ucknow.

. $o more late payments.

. $o more queues.

. $o more hassles of depositing cheques.

0:


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1. icket bookings

Bank has taken another step of bringing convenience of booking "ndian Airlines

ticket. ;e can book our tickets online over "nternet, by paying through Bank

account. Bank will take us to airlines website then we have to follow some steps to

avail our ticket.

00


45/56

A$!">>A2H )C2E"!C) BH BA$ockers and safe custody services to its

customers for keeping their documents, gold ornaments and other valuable things

through its large number of branches, at a very reasonable charge.

3. GF># !F"$).

Bank of "ndia sells ure Gold which is 30 carat and ///./ pure !erticards with an

Assay !ertification. Bank of "ndia offers sale of Gold !oins in the denominations of 0 g, 1g, = g, * g, 3 g O 1 g in round, oval O rectangular bar shapes well packed in

transparent, tamper-proof packing. Bank of "ndia Gold !oins is imported from A@

refinery 5)witzerland6 which is one of the most trusted and reputed Gold refinery in the

world. he price of Bank of "ndia Gold !oins is based on the @arket 2ate of gold as on that day.

eatures&

. 30 carat, ///./ ure Gold

. Bank of "ndia offers ure Gold !oins in the denominations of 0 g, 1 g, = g, * g,3 g O 1 g.

. Available in shapes of 2ound, Fval O 2ectangular Bar.

. acked in emper-proof packing O visible through packing

urpose&

. A trusted avenue for "nvestment and )avings

. Gift for special occasions and festivals

. !orporate Gift for employees( achievers( high value clientsrice

. Gold !oins are competitively priced based on the daily prices in the international

bullion market. he price is inclusive of customs duty and other charges but

excluding Eat().

Availability

01


46/56


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Bank of "ndia has a group insurance scheme in tie-up with )tar nion #ai-ichi

>ife "nsurance !ompany >imited for )tar 8ome >oan borrowers. he ob4ective of

the scheme is to provide financial security to the dependents of the insured )tar

8ome >oan borrowers in case of any unexpected eventuality. "n such an event theinsurance company assumes the responsibility to pay the Bank the sum assured so

that the dependents of the insured borrower5s6 are spared from financial hardship

and insecurity. his is a single premium term insurance cover for home loan. he

insurance cover is an optional facility exclusively available to our )tar 8ome >oan

borrowers for a low premium.

!. Cducational >oan "nsurance )cheme 5Fptional6&

"n order to protect the interest of the student and their parents, an optional life

insurance scheme at very competitive rates is available where the premium is also

funded as a component of loan. he insurance cover will be for the duration of

course S moratorium S repayment period. "n the event of untoward incident

involving the student or the parent, the insurance company will repay the

outstanding loan amount to the Bank. "f there is any surplus, the amount will be

paid to the nominee.

0D


48/56

0. @A> $#)

@utual und products are offered to all our customers as a !orporate #istributor

for the following Asset @anagement !ompanies &

" @utual und ,

. 8#! @utual und ,

.


49/56

services through both the #epositories viz. $ational )ecurities #epository >imited

5$)#>6 and !entral #epository )ervices 5"ndia6 >td. 5!#)>6. #emat Account can be

opened by individuals including $2"s, artners, !orporate, )tock Brokers and !learing

@embers of )tock Cxchanges with any of our Branches.

F#0!%!!es #,#!%#8%e fo) Dem# A00oun 4o%$e)s9

. #ematerialization of physical share certificates

. 2ematerialization i.e. converting electronic holding into physical certificate

. )afe !ustody of #C@A securities.

. "nstantaneous transfer of shares(securities.. )ettlement of trade done in #C@A( rolling segment of stock exchanges.

. ledge(hypothecation of #C@A securities.

. #irect credit of #C@A shares allotted in ublic(2ights(Bonus "ssues.

. Auto distribution of dividend through depository system

. ransposition-cum-#C@A facility to enable investors

transposes name(s of 4oint holder(s, along with the process of

#ematerialization. An investor can get his(her securities

#ematerialized in same account if names appearing on the

certificates match with the names in the account even if the

names are in different order.

. reezing(#efreezing of account facility by which you may

instruct your #F to freeze your )tar )ecure Account till

further notice. his way, no transaction can affect your

account without your explicit authorization.

0/


50/56

P. ;8A #F HF CC> ABF FEC2 A>> )C2E"!C PA>"H F 8C BA$


51/56

P. F ;8A C2!C$AGC BA$< !AC2) HF%2C BA$


52/56

P. ;8C2C #F HF CC> 8A BA$< $CC#) "@2FEC@C$V

!ustomer survey- 3 IPuick response-3 I

roduct range offered- ? I

:

31

3

*1

*

1

customer survey quick response product range offered

13


53/56

)uggestions

" would say that the biggest challenge for banking industry is to serve the mass

market of "ndia. !ompanies have shifted their focus from product to customer.

he better we understand customers, the more successful bank will be in

meeting their needs. "n order to mitigate above mentioned challenges "ndian

banks must cut their cost of their services. echnology up gradation is an

inevitable aspect to face challenges.

he level of consumer awareness is significantly higher as compared to

previous years. $ow-a-days they need internet banking, mobile banking and

A@ services so bank has to provide good services to customers.

Cxpansion of branch size in order to increase market share is another tool to

combat competitors. herefore, "ndian nationalized and private sector banks

must spread their wings towards global markets as some of them have already

done it. "ndian banks are trustworthy brands in "ndian market9 therefore, these

banks must utilize their brand equity as it is a valuable asset for them.

hese are my suggestions to bank which help them to move towards the

success.

1:


54/56

!onclusion

"t shows the various challenges and opportunities of bank like rural market,

transparency, customer expectations, management of risks, and growth in

banking sector, human factor, global banking, environmental concern, social,

ethical issues, and employee and customer retentions.

Banks are striving to combat the competition. he competition from global

banks and technological innovation has compelled the banks to re-plan their

policies and strategies.

10


55/56

!)F@C2 )A")A!"F$ )2ECH F

BA$< F "$#"A.

$A@C& WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

P.*6 ;hat kind of account do you holdV

)aving deposits ixed deposit

!urrent account 2ecurring deposit

>oans ensioner account

P.36 8ow long you have account in this bankV

WWWWWWWWWWWWWWWWWWWWWW

P.:6 ;hat do you feel about over all service quality of your

BankV

oor Average Good Cxcellent

P.06 o what percentage does bank caters your banking needsV

-31I 3?-1I 1*-D1I D?-*I

P.16 8ow efficiently does your bank handles the transactionV

-31I 3?-1I 1*-D1I D?-*I

P.?6 to which bank do you mostly compare your bank products withV

WWWWWWWWWWWWWWWWWWWWWWWWWWW WWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

P.D6 8ave you ever faced any problem or difficultyV

)pecify& WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

P.=6 hrough which media do you mainly get information

11


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About your bank product or servicesV

E add ace to face Banners

"nfo through bank others WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

P./6 8ave you applied for credit 5any kind of loan6V

Hes $o

P.*6 Are you satisfied with the service you received from

)upervisor and manager of the branchV

Hes $o

P.**6 ;here do you feel that bank need improvementV

!ustomer survey Puick response

roduct range offered

P.*36 ;ould you suggest this bank to your friends and relatives O

whyV

Hes $o @ay be.WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

UUUUUUUUUUUUUUUUUUUUUU hank Hou UUUUUUUUUUUUUUUUUUUUUUU

1?1D

133413005-project-on-bank-of-india.rtf

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