Indian Overseas Bank Final

A Project Report

On

THE ROLE OF INSURANCE AT INDIAN OVERSEAS BANK

In Partial fulfilment of Requirement for B.B.A.

(Guru Nanak Dev University, Amritsar)

Submitted to:DR. ALOK SAKLANI

(DIRECTOR)

Submitted by:DIVYA KATYAL

BBA-IIIRoll No.0310

APEEJAY INSTITUTE OF MANAGEMENT & ITDWARKA, NEW DELHI

INTRODUCTION

Indian Overseas Bank as a market savvy public sector bank is

always proactive to the customers needs by offering customer

centric products and services with the objective of total banking

solutions for every need of the customer. The IOB was nationalized

on July, 1969. It was the 14 the Bank to be nationalized. Our bank

as a financial services provider is always committed to student

welfare and would be happy to see that even in adverse situations,

like accident/disability of student death/accident/disability of

parent, student’s education should get completed uninterrupted.

Indian Overseas Bank has grown with a number of branches in

India and abroad. It has branches spread in most of the states in

India. The Bank’s operations range from an array of deposits

schemes, and advances. It has a wide network of Branches in

Urban, Semi-Urban, rural areas. The Bank Caters to specific needs

like foreign trade, Merchant Banking, Agriculture etc. through

specialised branches lie, Industrial Finance Branches, SSI branches.

The bank also has NRI branches to cater to the needs of the NRI’ s.

The insurance covers of parent will enable the student to have

unhindered education, in case of any adverse eventualities,

happening to the parent. The life cover with accident benefit and

health cover will help the student directly, for any health problems,

like hospitalisation expenses due to disease/accident. Since the

insurance covers are being arranged by us, on the basis of our

negotiation already arrived with insurance companies, the premia

is comparatively very low. The scheme is administered under tie

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up with the college and covers all the students admitted to the

college and also the existing students.

In keeping with our tradition of meeting customers needs and

aspirations through innovative products, we have designed yet

another value added scheme to provide life cover to all SB/CD

account holders. The scheme is a pure term assurance cover

offered by IOB with LIC of India under their Group Insurance

Scheme. All individual SB/CD account holders of our bank aged

between 18-55 years are eligible to join the scheme of paying an

annual premium.

The Indian insurance market is experiencing cosmic changes.

Industrial outputs have been taking quite long to create multiple

distribution channels for deeper penetration into the market. Till

now, in India, agents have dominated the insurance market and

the role of the brokers was limited to the reinsurance business.

The project aims to study the various distribution channels, the

existing ones and the new areas available to a life insurance

company considering their salient features, business potentials and

reach in the market.

In the second part of the project , new sectors have been explored

which can be used by the life insurance company for Corporate

Agency tie – ups through which the untapped market segments

can be targeted.

OBJECTIVES

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In its entirety, a project study may well be equated to a mission. As

an analogue, project objectives could be put at par with a mission

statement. Correctly set objectives set the prelude for a

meaningful study. With this view, the following objectives were set

for the research: -

To study the nature and flow of processes in a insurance firm in

the Indian Overseas Bank.

To trace the path of an application form, from conception until

the services are delivered to the customer.

To Study The Funds, Accounts and Audit in Indian Overseas

Bank.

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RESEARCH METHODOLOGY

The manner in which a study is conducted is the basic plan that

guides the project. With respect to this, the building blocks of the

research may be explained as under.

DATA COLLECTION APPROACH

The plank on which the study rests is information, which has been

procured as a judicious mix of both secondary data and primary

sources of data.

Secondary Data

Already published data formed the launch pad for the study. This

includes: -

Brochures, pamphlets

Official reports, specially the Annual report(s)

Case studies

Periodicals (magazines, journals)

The World Wide Web for Information ‘or’ the Internet

Primary Data

Data collected specifically for the research need at hand. This

includes:-

Interviews and surveys of people with informed ideas about the

subject of the project.

Observation: recognizing and recording relevant events and

activities.

INSURANCE INDUSTRY

4

IOB JEEVAN

Add on facility to all customers of our bank

In keeping with our tradition of meeting customers needs and

aspirations through innovative products, we have designed yet

another value add scheme to provide life cover of all SB/CD

account holders.

The scheme is a pure term assurance cover offered by IOB with LIC

of India under their Group insurance shceme. All individual SB/CD

account holders of our bank aged between 18-55 years are eligible

to join the scheme by paying an annual premium.

Salient features of the gorup insurance scheme “IOB-

JEEVAN”

Eligibility

This is a scheme available to all individual SB/CD account holders

of the Bank aged between 18-55 years. The cover ceases on

attaining 55 years of age.

Benefits

Optees under the scheme are eligible for a life insurance cover of

Rs. 1 lakh.

Premium payable

Premium payable depends on age which includes nominal

administration charges.

The premium will be debited from the account holders SB or CD

account and remitted to LIC by the Bank.

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Age Premium p.a.

18-45 Rs. 213/-

36-45 Rs. 321/-

46-55 Rs. 753/-

Medical Examination

There is no need for any medical examination. A simple

declaration of Good Health will suffice. The bank will act as a

Master Policy holder for and on behalf of the members in all

matters relating to this scheme.

Origin of Life Insurance

Almost 4,500 years ago, in the ancient land of Babylonia, traders

used to bear risk of the caravan trade by giving loans that had to

be later repaid with interest when the goods arrived safely. In 2100

BC, the Code of Hammurabi granted legal status to the practice.

That, perhaps, was how insurance made its beginning.

Life insurance had its origins in ancient Rome, where citizens

formed burial clubs that would meet the funeral expenses of its

members as well as help survivors by making some payments.

As European civilization progressed, its social institutions and

welfare practices also got more and more refined. With the

discovery of new lands, sea routes and the consequent growth in

trade, Medieval guilds took it upon themselves to protect their

member traders from loss on account of fire, shipwrecks and the

like.

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Since most of the trade took place by sea, there was also the fear

of pirates. So these guilds even offered ransom for members held

captive by pirates. Burial expenses and support in times of

sickness and poverty were other services offered. Essentially, all

these revolved around the concept of insurance or risk coverage.

That's how old these concepts are, really.

In 1347, in Genoa, European maritime nations entered into the

earliest known insurance contract and decided to accept marine

insurance as a practice.

The Structure Of The Insurance Market In India

The LIC for life assurance business & GIC and its subsidiaries for

general insurance business are the main providers of insurance in

India. As for the life insurance, the Postal Life Insurance Scheme

provides for life insurance coverage to government & public sector

employees & also the general public in rural areas. Various state

governments have life & general insurance funds established to

provide life insurance cover to their own employees as also general

insurance cover for their departments / corporations.

Nature Of Insurance Business

An insurer sells promise of future payment of insurance policy

benefits in return for the premiums received now. The happening

of the event insured against is uncertain - it may or may not

happen & if it does happen, the timing of its happening cannot be

predicted in advance. The promise is good & hence the policy is

worth something only to the extent that the insurer will be able to

pay when the time comes to pay the claim. There is considerable

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time gap between the payments of the premium & the settlement

of the claim. It is therefore the continued financial ability of the

insurer to fu1fill its side of the bargain that generates the-value of

insurance,

In the view of large funds that necessarily get accumulated in the

natural course of insurance business, the need for regulation

gained support from the policy holders as well as practitioners of

insurance. Regulation of insurance is regarded as an essential

requirement for the sound development of the insurance activities

& the insurance activities properly regulated, play an important

role in the process of national economic development.

Insurance Regulatory Development Authority (IRDA)

The opening up of the sector has been long standing and with the

passing of the Insurance Regulatory and Development Authority –

IRDA bill a significant step has been taken.

IRDA is formed as an authority to protest the interests of holders of

insurance policies, to regulate promote, and ensure orderly growth

of insurance industry and for matters connected therewith or

incidental thereto.

With the Insurance Regulatory and Development Act, the focus

shifted to the following:

The insurance Regulatory and Development Authority (IRDA)

should give priority to health insurance while issuing certificates

of registration:

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Policyholder’s funds will be invested in the social sector and

infrastructure. The percentage may be specified by the IRDA

and such regulations will apply to all insurers in the country.

Insurers will be expected to undertake a certain percentage of

business in the rural or social sector and provide policies to

persons residing in rural areas, workers in the unorganized and

informal economically basic:

In case of the insurers fail to meet the social sector obligation a

fine of Rs 2.5 million would be imposed the first time. Subsequent

failures would result in cancellation of licenses.

BENEFITS OF LIFE INSURANCE:

1. SUPERIOR TO ANY OTHER SAVINGS PLAN

Unlike any other savings plan, a life insurance policy gives full

protection against the risk of death. In the event of death of the

policyholder, the insurance company makes available the full sum

assured to the policyholder's nominees. In comparison, payment in

any other savings plan would amount to the total savings

accumulated till date. If the death occurs premature, such savings

can be much less than the sum assured. Evidently, the potential

financial loss to the family of the policyholder would be sizable.

2. ENCOURAGES & FORCES THRIFT

A savings deposit can easily be withdrawn. The payment of life

insurance premiums, however, is considered sacrosanct & is

viewed with the same seriousness as the payment of interest on a

mortgage. Thus, a life insurance policy in effect brings about

compulsory savings.

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3. EASY SETTLEMENT & PROTECTION AGAINST CREDITORS

A life insurance policy is the only financial instrument, the

proceeds of which can be protected against the claims of a creditor

of the assured by effecting a valid assignment of the policy.

4. ACCIDENTAL DEATH BENEFITS

Many policies can also provide for an extra sum to be paid

(typically equal to the sum assured), if death occurs as a result of

accident.

5. ADMINISTERING THE LEGACY FOR BENEFICIARIES

Speculative & unwise expenses can quickly cause the proceeds to

be squandered. Several policies have foreseen this possibility and

provide for payments over a period of years or in a combination of

installments & lump sum amounts.

6. READY MARKETABILITY AND SUITABILITY FOR QUICK

BORROWING

A life insurance policy can, after a certain time period (generally 3

yrs.), be surrendered for a cash value. The policy is also acceptable

as a security for a commercial-loan, for example, a student loan. It

is particularly advisable for housing loans when an acceptable LIC

policy may also cause the lending institution to give loan at lower

rates.

7. DISABILITY BENEFITS

Death is not the only hazard that is insured; many policies also

include disability benefits. Typically, these provides for waiver of

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future premium & payment of monthly installments spread over a

period of time.

8. TAX RELIEF

Under the Indian Income Tax Act, the following tax relieves are

available in relation to a life insurance policy:

The premiums paid under the plans qualify for rebate under

section 88.

The returns qualify for full tax exemption under section

10(10 D).

When these benefits are factored in, it is found that most policies

offer returns that are comparable or even better than other

modes of saving such as PPF , NSC etc. Moreover, the cost of

insurance is very negligible.

TYPES OF LIFE INSURANCE

Term insurance policy

Whole life policy

Endowment policy

Money back policy

Annuities and pension

Most of the products offered by Indian life insurers are developed

and structured around these "basic" policies and are usually an

extension or a combination of these policies. So, what are these

policies and how do they differ from each Other?

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TERM INSURANCE POLICY

A term insurance policy is a pure risk cover for a specified period of

time. What this means is that the sum assured is payable only if

the policyholder dies within the policy term. For instance, if a

person buys Rs 2 lakh policy for 15-years, his family is entitled to

the money if he dies within that IS-year period.

What if he survives the 15-year period? Well, then he is not entitled

to any payment; the insurance company keeps the entire premium

paid during the 15-year period. So, there is no element of savings

or investment in such a policy. It is a 100 per cent risk cover. It

simply means that a person pays a certain premium to protect his

family against his sudden death. He forfeits the amount if he

outlives the period of the policy. This explains' why the Term

Insurance Policy comes at the lowest cost.

WHOLE LIFE POLICY

As the name suggests, a Whole Life Policy is an insurance cover

against death, irrespective of when it happens. Under this plan,

the policyholder pays regular premiums until his death, following

which the money is handed over to his family.

This policy, however, fails to address the additional needs of the

insured during his post retirement years. It doesn't take into

account a person's increasing needs either. While the insured buys

the policy at a young age, his requirements increase over time. By

the time he dies, the value of the sum assured is too low to meet

his family's needs. As a result of these drawbacks, insurance firms

now offer either a modified Whole Life Policy or combine.

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ENDOWMENT POLICIES

Combining risk cover with financial savings, endowment policies

are the most popular policies in the world of life insurance.

In an Endowment Policy, the sum assured is payable even if the

insured survives the policy term If the insured dies during the

tenure of the policy, the insurance firm has to pay the sum assured

just as any other pure risk cover.

A pure endowment policy is also a form of financial saving,

whereby if the person covered remains alive beyond the tenure of

the policy; he gets back the sum assured with some other

investment benefits. In addition to the basic policy, insurers offer

various benefits such as double endowment and marriage/

education endowment plans. The cost of such a policy is slightly

higher but worth its value.

MONEY BACK POLICIES

These policies are structured to provide sums required as

anticipated expenses (marriage, education, etc) over a stipulated

period of time. With inflation becoming a big issue, companies

have realized that sometimes the money value of the policy is

eroded. That is why with-profit policies are also being introduced to

offset some of the losses incurred on account of inflation.

A portion of the sum assured is payable at regular intervals. On

survival the remainder of the sum assured is payable. In case of

death, the full sum assured is payable to the insured.

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ANNUITIES AND PENSION

The premium is in an annuity, the insurer agrees to pay the

insured a stipulated sum of money periodically. The purpose of an

annuity is to protect against risk as well as provide money in the

form of pension at regular intervals.

Over the years, insurers have added various features to basic

insurance policies in order to address specific needs of a cross

section of people.

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COMPANY PROFILE

INDIAN OVERSEAS BANK

Chidambaram Chettyar and a group of persons wanted to invest

their surplus money in something that will being them profits. So

they decided to start a bank with their surplus money. 6the bank

was incorporated in 1932. Since it had many branches abroad, it

was given the name Indian Overseas Bank. Its main function was

giving loans.

Since its inception, the Indian Overseas Bank has grown with a

number of branches in India and abroad. It has branches spread in

most of the states in India. The Bank’s operations range from an

array of deposits schemes, and advances. It has a wide network of

Branches in Urban, Semi-Urban, rural areas. The Bank Caters to

specific needs like foreign trade, Merchant Banking, Agriculture

etc. through specialised branches lie, Industrial Finance Branches,

SSI branches. The bank also has NRI branches to cater to the

needs of the NRI’ s.

Bank +started a specific loan schemes to promote higher

education, encourage woman entrepreneurship, liquid securities

and popular consumers.

The Bank has been defined differently by different Authors. Some

of the definitions and meaning of Bank/Banking are given

hereunder. Banker is a person or company carrying on the

business of receiving money and collecting draft for customer

subject to obligation of honoring cheques drawn upon them from

15

time to time by customers to the amount available on their current

accounts. Banking is accepting for the purpose of lending or

investment, deposits of money from the public ‘repayable on

demand or otherwise withdrawable by cheques, drafts order or

otherwise. The Corporate strategy in the light of its mission,

philosophy, structure, system, staff, managerial styles, skills and

sense of super-ordination and environmental conditions, National

and International, prevailing at the movement. The other details

explained in the chapters here-to-after will throw light on the

manner, method and ways in which it has taken place and the

results achieved by the Bank.

Retail banking is not without its disadvantages. Large number of

small accounts add additional burden on the follow up. While

expressing these views, A L Chandramouli (General Manager,

Indian Overseas Bank) also provides brief details of retail schemes

of Indian Overseas Bank like easy deposits, re-investment deposits

and gift cheques. He also notes that his bank is the pioneer in

promoting personal loan scheme, which is a loan to individuals for

acquisition of consumer durables.

GENESIS OF IOB

Indian Overseas Bank (IOB) was founded on February 10th 1937, by

Shri.M.Ct.M. Chidambaram Chettyar, a pioneer in many fields-

banking, Insurance and Industry with the twin objectives of

specializing in foreign exchange business and overseas banking.

It had the unique distinction of commencing business on 10th

February 1937 (on the inaugural day itself) in three branches

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simultaneously-at Karaikudi and chennai in India and Rangoon in

Burma (presently Myanmar) followed by a branch in Penang.

IOB started serving Independent India with 38 branches in India

and 7 branches abroad in 1947. Deposits stood at Rs. 6.64 Crs and

Advances at Rs.3.23 Crs at that time.

Pre-nationalization era (194-69)

During the period , IOB expanded its domestic activities and

enlarged its international banking operations.

As early as in 1957, the Bank established a training center

which has now grown into a Staff college at Chennai and with 9

training centers all over the country.

7IOB is the first Bank to venture into customer credit. It

introduced the popular Personal Loan scheme during this

period.

In 1964, the Bank made a beginning in computerization in the

areas of inter-branch reconciliation and provident fund

accounts.

At the time of Nationalisation (1969)

IOB was one of the 14 major banks that were nationalised in

1969.

On the eve of Nationalisation in 1969, IOB had 195 branches in

India with aggregate deposits of Rs. 67.70 Crs. And Advances of

Rs. 44.90 Crs.

17

Post- nationalisation era (1969-92)

In 1968, IOB established a full-fledged department to cater

exclusively to the needs of the Agriculture sector.

In 1973, IOB had to wind up its five Malaysian branches as the

Banking law in Malaysia prohibited operation of foreign

Government owned banks. This led to creation of United Asian

Bank Berhad in which IOB had 16.67% of the paid up capital.

In the same year Bharat Overseas Bank Ltd was created in India

with 30% equity participation form IOB to take over IOB’s

branch at Bangkok in Thailand.

In 1977, IOB opened its branch in Seoul and the Bank opened a

Foreign Currency Banking Unit in the free trade zone in

Colombo.

Regional Rural Banks- towards reaching mass

The Bank has sponsored 3 Regional Rural Banks Viz. Puri

Gramya Bank, Pandyam Grama Bank, Dhenkanal Gramya Bank

The Bank has setup a separate computer policy and planing

department (CPPD) to implement the programme of

computerisation, to develop software packages on its own and

to impart training to staff members in this field.

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POST REFORM PERIOD – UNPRECEDENTED DEVELOPMENT

(1992 & AFTER)

Computerization – towards customer delight: 270 branches

have been totally computerised and 350 branches have been

partially computerised as of December 1999. Automated Teller

Machines (ATM) 17 in –operation and 14 more planned for the

current year.

IOB entered Web site during the month of February 1997

The bank released “Citizen Charter” on the Founders Day (1.e)

20th November 97

IOB is the first bank to enter gold trade.

IOB got autonomous status during 1997-98

Seed bank scheme was launched in coordination with Dr.

M.S.Swaminathan Research foundation on 6th February 98

IOB stated STAR services in December 1999 for speedy

realization of outstation checks. Now the Banks has 14 STARS

centers and one Controlling Center for providing this service.

IOB has launched Any Branch Banking services in Chennai, Delhi

and Mumbai during 1999.

IOB had the distinction of being the first Bank in banking

industry to obtain ISO 9001 Certification for its computer policy

and planing department from Det Norske Veritas (DNV),

Netherlands in September 1999. This Certifications cover

Design, Development, Implementation. and Maintenance of

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software developed in-house, procurement and supply of

hardwired and execution of turnkey projects

During 1999, IOB started tapping the potential of internet by

enabling ABB card holders in Delhi to pay their telephone bills

by just logging on to MTNL web site and by authorizing the Bank

to debit towards the telephone bills.

IOB launched a novel scheme called “AAROGYA” under tie-up

arrangement with Apollo Hospita, Chennai which facilitate free

medial check up in this hospital

As of March 2000, IOB had 1419 branches in India and 6

branches in overseas. The bank’s global deposits stood at Rs.

24,318 Crore and global gross advances stood at Rs. 11,573

crore. The bank’s domestic deposits stood at Rs. 23,613 Crore

and domestic gross advances stood at Rs. 10,170 Crore.

Fourth ABB center was put in Calcutta on May 18, 2000.

Simultaneously on the same day, inter-city connectivity was

provided among the four metores-Calcutta, Chennai, Delhi And

Mumbai

Consequently the customers o any one of 129 branches in the

four metros can bank with any of these 129 branches with their

ABB cards

Internet Banking scheduled to take off in August 2000

IOBNET connects Central Office with all Regional Office

20

IOB’S MAIN FEATURES

Credit card scheme

The bank took a policy decision to market only Canara Visa in view

to idea acceptability and marketability. The card was redesigned to

give market visibility to the Bank.

Computerisation

The bank has setup its own network employing the latest available

technology. Tele-banking facility is also introduced. The Bank

Opened Regional Computer Centers (Rccs) in 20 regional offices

and with this all the regional offices have been provided with RCC

set up.

Customer service

Customer Service continued to be the thrust area for the bank.

Prompt redressal of grievances was given top priority. The Booklet

Contain information about various schemes and services offered by

the bank for the benefit of customer.

Sakthi Job Chidambaram Chettyar Memorial Trust

This trust was launched by the bank and its staff through their

respective organization in memory of Founder of the Bank. The

courses include tailoring, computer application, screen-printing and

stenography. The training progammes are conducted in

coordination with Voluntary organizations.

21

ABC services

The Agri Business Consultancy Services the specialized outfit of the

bank offering consultancy to corporate, government Companies &

entrepreneurs. The bank is association with M.S. Swaminathan

Research Foundation launched, and innovative Wasteland

development Project for small and marginal farmers. The project

aimed at production of quality pulses seeds in dry parts of Tamil

Nadua by using rain water harvesting technology.

22

INSURANCE INDUSTRY ANALYSIS

MARKET SHARE IN FY-2002-2003

6%

94%

Private Players

LIC

This graph represents the market share, in terms of premium, of

LIC against the private players for the financial year of 2003-04.

This is only the third year for the private players after their

induction in 2000 and for many in 2001. This is quite a god

showing because the presence of the private players in the rural

sector is quite negligible and the faith of the middle and lower

class on private sector is not comparable to LIC, which enjoys their

faith being state insurer. But this is a god start and warning is their

for the LIC.

23

MARKET SHARE IN FY 2004-2005

This year showed a much improved performance for the IOB. Their

market share of the premium grown from 6% to 22%. Though they

still unable to gain a foothold in the rural areas, they’d shown

marked improvement in terms penetration in the cities specially

metros where the share of LIC is continuously on a steep decline.

The major factors pushing for them are better accessibility, better

image makeover through media etc. The returns on the investment

are also improved due to good showing of the stock market. The

private players has shown promising future ahead of them, and

with the presence of all the major financial institutions as well as

the many of the big corporate players their share is surely going to

improve in the coming years.

22%

78%

IOB

LIC

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MARKET SHARE COMPARISON

This graph clearly demonstrates the present trend in the insurance

sector in India. And with the proposal of increasing the limit of FDI

the battle is going to intensify. And with private players showing

only one way to go, up. This is quite a healthy trend because the

competition will ensure better product and their quality for the

investors.

IOB LIC0

10

20

30

40

50

60

70

80

90

100

Market share at % of premium 2003-2004

Market share at % of premium 2004-05

25

MARKET SHARE COMPARISON ON AMONG IOB

This graph illustrates the division of the percentage premium

among the major private players in the life insurance sector. The

biggest among them is ICICI followed by Birla and others. The

share of IOB is about 4% and is growing at the rate of more than

100% per year. The trends which we have seen earlier is

continuing here as well, as all the private players showing growth

in their annual premium.

ICIC

I Pru

dentia

l

Birla

Sunlife

HDFC Sta

ndard

SBI Life

TATA AG

Allian

z Baj

aj

Max

New

York

Om

Kota

kIO

B

ING

Vys

ya

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5Market share as % of premium 2003-04

Market share as % of premium 2004-05

26

27

28

NEW AREAS TO BE EXPLORED

Presently lot of work is being done to form tie ups with people in

different sectors so that they on the basis of their present

customer base can help us tap into the -new and the untapped

market segments. For this working out the tie-ups are being done

in the following segments of the market.

APPOINMENT OF CORPORATE AGENCY

During the in - house training we explored the following sectors to

assess their potential as a Corporate Agency for the distribution life

insurance:

Companies engaged in financial services: -

1. Finance, investment and leasing companies

Investment/financial

2. Consultants

3. Charted Accountants/Company secretaries

Share Brokers

Event Management Companies

Builders and Developers

Non Governmental Organizations

Associations and affiliation groups

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LIMITATIONS

No project can be without any limitations. This project also has a

few limitations which are:

It was required to go to the Head Office to get the data in

details which could not be done due to time constraint.

However, information was collected from Regional/Zonal offices.

The findings are based on available information / data collected

from banks and other sources such as annual general reports

and the data is not exhaustive by any means.

Not suffice information was provided by Indian Overseas Bank.

Performance Highlights of IOB could not be obtained.

Pay scales of the Managerial staff could not be obtained.

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CONCLUSION

The Indian Overseas Bank has been spreading its branches to all

areas. Being continuously engaged in innovative fields, it has

pioneered each and every state.

It would have been observed from the contents of the chapter and

paragraphs given here-to-fore that the following facts emerge very

clearly:-

The today’s scenario signals that there is a lot of potential for the

growth of insurance sector as the people are becoming more &

more concerned about the safety & security of themselves & their

loved ones. This increasing awareness & concern about the need

for insurance requires the presence of expert people who can

guide & advice people about insurance & suggest them the

products that fits their needs perfectly.

An Insurance Advisor is the one who can take up this responsibility

& help people in this. It will not only be beneficial for the society

but it will also give him an opportunity to grow, to earn & achieve

self-satisfaction. And with a backup of a reputed company like ICICI

Prudential Life Insurance, there seems no barrier in achieving this.

The future of Indian Overseas of India is very bright, place of pride

assured, eminence and prominence guaranteed and profitability

and commercial viability beyond any threat or doubt for years to

come.

As a summer trainee I had suggested a proper evaluation

procedure either through conducting a survey or by observing

employees. With the help of the suggestions given by the

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employees and its open view about the changing global scenario,

Indian Overseas bank is constantly involved in bettering the best.

32

BIBLIOGRAPHY

1. The Journal of Institute of Bankers.

2. Personal Management – Arun Monappa, Mirza, Saiyadain.

3. Principles of Bank Management – P Subba Rao.

4. Know your bank – Booklets of Punjab National Bank & Indian

Overseas Bank.

5. Research Methodology – K.C. Kothari

6. Insurance chronicle published by ICFAI University.

7. Web sites of the three banks

www.indianoverseas.com

www.iob.com

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ACKNOWLEDGEMENT

"Acknowledgement is an out, one can write glib stanzas without

meaning a word, on the other hand one can make a simple

expression of gratitude".

Though the knowledge is a poor substitute for the sentiments, yet

there is no way out to recover to it for expressing my prefound

gratitude, indebtedness and sincere regards of to Apeejay

Management Institute and IT for giving me this platform from

where I could work on live project and research.

I am extremely thankful to Mr. R.K. Mohanty (Chief Manager) for

his support and guidance to complete this project.

I would also like to thank all those employees of Indian Overseas

Bank who helped me in my project study.

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CONTENT

Topics Page No.

Introduction 1

Objectives 3

Research Methodology 4

Insurance Industry 5

Benefits of life insurance 9

Company Profile: Indian Overseas Bank 15

Genesis of IOB 16

IOB main features 21

IOB Organizational Structure 23

Funds, accounts and audit 35

Insurance Industry Analysis 43

Limitations 49

Conclusion 50

Bibliography 52

PREFACE

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Today in the banking sector every bank nationalized or private are

striving to reach the pinnacle. Though in the national scenario the

Govt./Nationalized banks are leading bank in the metropolitan context

the private banks are leading both in business as well as service.

STANDARD CHARTERED has built its leadership by making itself as

one on the world’s leading emerging bank. in the present scenario when

it has become difficult to survive in such a cut throat competition,

STANDARD CHARTERED is able to not only survive but to hold top

position in markets banking sector the bank serves both consumer and

wholesale banking customers. The consumer bank provides SAVING

A/C’s, credit cards, personal loans, mortgages, etc. and the wholesale

bank provides services to national and multinational clients in trade

finance, cash management, custody, lending etc.

This study is basically divided into five major parts. The first part of

the report includes the introduction of the study. The second part

deals with the bank profile of Standard Charted and its competitor

UTI Bank, their objectives, methodology and services provided by

them. The third part includes Area of study and Research Design of

Standard Chartered. The fourth part is related to survey and

analysis of the bank. The last part deals with conclusions,

recommendations and limitations of the study.

EXECUTIVE SUMMARYI have done my summer internship with STANDARD CHARTERED BANK.

My whole summer internship was divided into three sections.

In the first section of my summer internship I was into the hard-core selling of saving

accounts, in the second section I have analyzed the behavior of the people who are opening

an account with STANDARD CHARTERED.

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The following project starts with an idea regarding the banking sector and also the profile of

STANDARD CHARTERED. It also informs how an account can be made with the

STANDARD CHARTERED. The project contains the comparison of Standard Chartered

with UTI Bank with respect to their saving accounts.

The comparison is followed by the survey and its analysis and at the end the

recommendations which could help STANDARD CHARTERED to be more effective in the

field of banking sector.

TABLE OF CONTENTS

1. INTRODUCTION TO THE INDUSTRY

2. INTRODUCTION TO THE COMPANY

3. RESEARCH METHODOLOGY

Title

Objectives

Scope of the Study

Area of the study

Methodology

Research Design

Statistical Tools used

Limitations of the Study

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4. FACTS AND FINDINGS

5. RECOMMENDATIONS

6. CONCLUSION

7. BIBLIOGRAPHY

8. ANNEXURE QUESTIONAIRE

COMPARISON CHART___________________________________

CERTIFICATION

This is to certify that Arnab Hazra, Roll No - 11/108, PGP IIA has

successfully undertaken the project "Implementation Of CRM in

Banking Industry, A Case Of ICICI Bank" assigned to me under

my guidance.

[ARNAB HAZRA] [Dr ALOK SAKLANI]

ROLL NO - 11/108

PGDBM IIA

DATED : 4/4/05

ACKNOWLEDGEMENT

The report submitted by me is a reflection of the efforts of

many people associated with ICICI Bank of several Branches

with each one playing a different role.

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At this very juncture I would like to express my sincere

gratitude to my project guide Dr Alok Saklani, Programme

Director for providing constant guidance and encouragement.

His constructive criticism and suggestion benefited me a lot.

I express my most sincere thanks to entire team of ICICI Bank,

who were always ready to provide me their guidance and

support on any problem and sharing their knowledge with me.

In the research process I also took help of other Pvt. sector

Banks like UTI Bank, HDFC Bank so I thank them all for their

effective cooperation.

I sincerely welcome suggestions and constructive criticism.

[ARNAB HAZRA]

ROLL NO - 11/108

PGDBM IIA

EXECUTIVE SUMMARY

I did this project work mainly with the new advent of CRM

strategies in the Banking Sector. However this has become a new

dilemma in the service industry that all the companies are highly

curious to launch the new practice of CRM into the system for

better performance.

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But here lies a big question how far the new strategies are

properly implemented to make the system user-friendlier to

customers?

In this small research I mainly dealt with negative aspects of

CRM. I concentrated my research mainly on those aspects

whether excessive marketing strategies due to CRM

implementation are irritating customer.

I have conducted my research focussing mainly on ICICI Bank

and I have also taken data from other private sector Banks to

make the study more interesting and purposeful.

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