37039592 MBA Full Project

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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




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




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.



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


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


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



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



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

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