oriental bank pro

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CONTENTS

INTRODUCTION TO PROJECT

INTRODUCTION TO BANKING

O.B.C BANK PROFILE

SPECIAL LOAN SCHEMES OF O.B.C

PREMIUM SERVICES

SURVEY AND FINDING OF THE SURVEY

SUGGESTION AND CONCLUSION

ANNEXURE

Questionnaire

Bibliography

Dr. Ambedkar BBM College 1


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CHAPTER 1


Introduction

Specific introduction

Needs of study Objectives of study

Area of study

Benefits of study

Research designing

Methodology

Limitations



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Introduction

First we know the meaning of banking world bank is derived from

Latin world Banco A book is a institution, which deals in a money banks

are commercial institutions, which are receive money in the form of deposit

from those who have money to these who are in need of it.

Banks plays an important role in the modern world and also our

economy. Banking services are indispensable. Banks plays a vital role in the

economic development of the country. Today Banks are not only suppliers of

money but also manufactures of money in past banks only accepts the

deposits and provide the some to the customer as to the customer as loan for

interest. But now a days banks offering many new types of services they

providing loan advances many new schemes for different class people.

Different credit facilities are also helpful for the people in getting different

types of credit facilities for different areas. Banks providing many

opportunities for the people to utilize the facilities provided by banks to the

maximum possible extent.

There are various banks in India among them oriental bank of

commerce is the biggest and the most important commercial bank in the

country. Oriental bank collects the money from different types of deposit

schemes. The main aim of OBC bank through various deposit scheme collects

money it help to increase common people earning with saving capacity of the

people. Bank returns after completion of a period return their deposit with

interest .and this way (deposited) collecting money invested in shares

debenture in company. Through this manner bank get the dividend from

company. collecting premium and interest by the company. and also Bank

provides more than loan facility to the public. In this way Bank collects the

rate of interest from provide loan.



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Specific introduction

Money is a very important part of leading our life. Without money

power another all powers are waste. Human wants are unlimited. Some ofThese wants for the fulfillment by the money. Whatever we purchase money

is very important to buying getting the things without money we cannot any

things doing in this world some times we does not having sufficient fund. In

that time very essential loan to us. In the past days Shetties Marvadies some

great peoples of the village provided loan facility to the needed peoples. In

this manner they also collects the high rate of interest. and they torched to

peoples when they asked money will be returns the people. this system

avoided from the Bank system of India. Already we are discussing banks are

the commercial institutions collect the deposits in various deposit schemes.

and also provided loan facility to the different class peoples whenever they

needed. Oriental bank is a one of the commercial bank it provides the

different types of service to the customers. very helpful to the peoples. It

provides various type of loans with lower rate of interest to the poor and

middle class peoples.

For example OBC provided Car & Vehicle loan, Agriculture loan,

Education loan, Home loan, Bon Voyage loan.

Needs of study

Loan is a very essential to our needs fulfillment. almost all human

wants are fulfill by purchasing their wanted things. For the purchase of things

they had lot of money. some times we did not have sufficient money power.

In this time loan facility avoided money problem. These loans are given by

bank institutions. Banks are the one of the commercial institutions provided

great services to the peoples by providing loan.



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Objectives of study

This project work main objectives are given below.......

To make detailed study of credit facilities of oriental bank in different

sector.

To know the utilization of credit facilities of bank by customers.

To study of problems connected with granting credit to the customers.

The study of establishment, growth & progress of customer service

provided bank.

To know the opinion of the customer regarding loan provided by bank.

To know general opinion about the bank.

To express own opinion about banks developing services attract new

customers and hold existing customers.

To go into depth about credit facilities provided by bank.

To know the various loan schemes of OBC. And its rate of interest,

duration , eligibility, purpose of loan.

To suggest the solution to their problems.

To know about performance of bank.

To make brief study of customers behavior to solve the problems.

Area of study

On The Oriental bank of commerce branch located at Savarline road

Shimoga is selected and their information about bank functions.

This project report aimed at giving analyses in credit facilities ingeneral and analyses of credit facilities to words customers from customers

point. The respondents were selected random basis.



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Benefits of the study

We can set clear idea about the bank and its development.

Study gives us to know the performance growth of bank.

By preparing this project report , the study helps us incoming to our own

suggestions for its improvements.

It increase our knowledge regarding banking operation and activities.

By this project work we can get clear idea about the banks loans,&

services of the society people.

The project report helpful to knowing about the customer satisfaction and

expectation about the banking service.

Research Designing

Types Of Research

Sampling technique

The types of research used for understanding this dissertation was

through survey research method.

Sampling technology Method

The types of sampling technique method adopted for conducting the

survey was simple random sampling of adult individual.

Sample size

The sample size for survey conducted was 100 individuals comprising of

adults.

The sampling population for conducting the survey completed in a

total of 50 individuals the sample comprises of professional, student.

businessmen etc the purpose of the survey to analyze general individual

behavior towards saving attitude.



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Methodology

This report is based on the preparation of questionnaires. And

collection of data. Both primary & secondary data helped to complete the

project report so it includes both the primary and secondary data .Primary data

It refers to the information received directly from the respondents by a

research for a particular purpose.

Here the primary data is collected through direct approach and survey.

The information is collected by an oral enquiry with the manager and staffs of

the bank. They were personally interviewed about the loans and service

rendered by OBC bank. The survey was conducted by issuing questionnaires

to employees of OBC and customers about 50 respondents who have

answered.

Secondary data

The secondary data collected from published or unpublished sources.

Here information was also collected from books of manuals journals annual

records and some information is extracted from Internet. Which reveals the

customers idea about the branch.

Limitations of the study

There are some limitations are therein making this project report.

There are as follows

This study for got limitations in that it is purely done for academic

reasons.

The time budget assorted for conducting the study is limited.

Some customer will not give correct opinion about the survey.

Here we can not contact all types of customers.



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The non co operation of customers and their un realistic consumer, all

the reasons are used to optimum extent to complete the reports successfully.

CHAPTER -2


Introduction

Origin of bank

History of bank

Banking system in India

Functions of banking

Features of banker

Functions of Banker

Special types of customers

Banker customer relationships

Development of modern banking

Classification of banks



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Introduction

In the past the use of money for buying and selling was very much

restricted, with the development of commerce and the advancement of

commerce and the advancement in science and technology and growth of

Economic and political. Institution the use of money expanded. Along with

the use of money, the use of credit instruments also developed. The origin of

modern financial institution can be traced to antiquity, where the individuals

used to accept the money in the form of deposit and lend it to the people who

needed the same for meeting. Old order of barrowing and lending under went

to a lot of changes. Finance becomes powerful instrument for any change.

The innovation in the field of transport and communication, development of

energy and manufacturing have resulted in innovation of banking.

Banking system has occupies an important position in our commercial

world. Banking institutions is indispensable. Banking system playing a very

important role in the economical development of our country. Commercial

banks are having lions share in the total banking operations in our nationcommercial banks are oldest institutions having a wide network of business.

Banks render very valuable service to the communicates to the trade

and industry. They keep the wheels of trade, commerce and industry always

revolving. Banks provided financial assistance to small scale and large scale

industries. Banks today are backbone of modern industry. They are essential

part of the community.

Origin of bank

There is a different opinion regarding the origin of the term bank.

According to some it is derived from Italian word BANCO, Latin word

BANCUS French word BANQUE, which means a bench. In olden



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days European bankers using bench to transact there banking activities.

However, according to others the word BANK is derived from German

word BANK WHICH MEANS Common fund raised from a large number

of public .

History of bank in India

The development of modern banking in India begin with banking

activities undertaken by English agency House at Calcutta and Bombay

which combined banking with trading. It appears that the earliest bank on

western line was established at Madras as early as 1683.The first joint stock

bank was the bank of Hindustan established at Calcutta in 1770.at the time

another banks were established bank of Bombay in 1840. Bank of Madras in

1843 and Bank of Bengal.

All these 3 banks were amalgamated in 1921 and names as The

Imperial Bank of India and again in 1955 this bank was taken over by

government . and was renamed as State Bank of India.

In 1889, other commercial banks were established. It was the first

pure India joint stock Bank it was followed by Punjab National bank in 1894

and so on.

Growth of banks was very slow in the beginning in 1913 and 1922.

108 banks were failed. In addition, in 1922 and 1936 , 376 Banks failed.

Only after independence banking system made rapid progress how India

Banking system is one of the developed banking systems of the world.

INDIAN BANKING REGULATION ACT 1949

Section 5(1) (1) of the Banking Regulation Act of 1949 defines the

term Banking Co as any company which transact the B/s of Banking in

India.



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Section 5(10) (b) of the banking regulation Act of 1949 defines the

term Banking as accepting from the purpose of lending or investment of

deposits money from the public repayable on demand or otherwise and with

draws by cheque , draft, order or otherwise.

CUSTOMER AND BANKING REGULATIONS AS PER ACT

Banker is one who does the business of banking. He is dealer in

money. Store he accepts deposits and lends it to needy people or units. Banker

act as an agent his borrower of bets and a purveyor of credit. When a person

uses funds of others for giving credit he is known as Banker.

According to Harbet Hart a Banker is one who in the ordinary course

of his business honors cheque drawn upon him by person from and for

whom he receives money on current A/c.

Functions of banking.

Section 6(1) (a) of banking regulations act 1949 state various types of

business that can be carried by banks and section 6(1) (b)

Of the some act also stipulated other important functions of banks

summarized as follows:

1. Accepting deposit from the public.

2. Providing credit facility facilities to industries, agriculture sector etc.,

3. Dealing with promissory notes, coupons, drafts, warrant etc.,

4. Also deal with other instruments, securities whether transferable or

negotiable or not.

5. Issuing letter of credit or travelers cheque.

6. Buying, selling of dealing with bullion.

7. Buying, selling of foreign exchange.

8. Acquiring holding underwriting and dealing with stocks, funds, share,

debentures, bonds etc..,



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Features of banker

1. Accepting of Deposits from public.

2. Profitable employment of fund so collected.3. Obligation to repay deposit in demand.

4. Lending of money.

5. Banking as a main Business.

Functions of banker

1. Primary function

2. Secondary function

1. Primary Functions.

a) Accepting the Deposits.

b) Granting or sanction of advances.

c) Discounting bill of Exchange.

2.Secondary Functions.

A) Agency services.

1. Collecting of income on behalf of customer.

2. Making payment on behalf of customer.

3. Purchasing and sale of securities on behalf of customer.

4. Acting as a trustee and executor.

B) General Utility Service

1. Provision of deposit arrangement.

2. Issue of letter of credit, travelers cheque etc.

3. Under writing of loans received by government.

4. Remittance of funds .



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Customer

In common sense customer refers to a person who has an A/c with a

Bank Account holder can regarded as customer according to H.L. Hart.

A customer is a person who has an A/c with a Banker or for whom aBanker habitually under taken to act such.

Special types of customers

These customers are those who are distinguished from other types of

ordinary customers by some by special features, Hence they are called special

types of customers.

They are as follows

Minors.

Lunatics.

Drunker.

Clubs.

Hindu undivided family.

Co-operative society.

Purdha women.

Illiterate person.

Trustee.

Executers.

Joint stock company.

Married women.

Banker and customer Relationships.

We can classify the Banker Customer relationship into two main

objectives.



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Primary relationship.

Debtor creditor relationship.

Trustee in respect of safe lockers.

Agent principle relationship.

Right to combine.

Special features of relationships.

Bankers is required to pay.

Presentation of cheque within reasonable time.

Banker has honor cheque drawn upon him subject to above

condition.

Development of modern banking

For the history of modern Banking in India a reference to English

Agency is the days of just India to, would by necessary the bank of

Hindustan was the first joint stock bank to be established in India under

European management. But soon of failed in the first half of the 19th

century.The East India to established 3 Banks. Banks of Bengal in 1809 , Banks of

Bombay in 1840 and Bank of Madras in 1843. These banks were know as

presidency banks. These 3 banks were amalgamated in 27th Jan 1921 to form

Imperial Bank of India.

The aid commercial bank was perhaps the first purely joint stock bank

to be established in1889 walter the Punjab National Bank .The people bank

were established.

The bank of India was started in 1906. Indian bank was started in

1906. The Indian bank in1907,The Bank of Baroda in 1908 and the central

bank of India in 1911.



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The SBI established and following seven banks were made subsidiaries

of SBI

State Bank of Beckonet and Jaipur

State Bank of Indore

State Bank of Mysore

State Bank of Hyderabad

State Bank of Saurastra

State Bank of Travancore

State Bank of Patiala

CLASSIFICATION OF BANKS

On the basis of functions, bank can be classified into 6 types

1 COMMERCIAL BANK:

Commercial bank usually requires deposit for a short periods and

supplies short term for short periods and supplies short term credit of

facilities to trade and commerce. The commercial banks are oldest institutions

having wide net work of branches. One of the commercial bank in our

country SBI having 12000 branches in all over India.

2 INDUSTRIAL BANK

Industrial bank is to meet Long term credit facilities to needs of

Industries. Which provide credit to Industrial under takings.

3 AGRICULLTURAL BANK

Credit need of Agriculture are of three types, They are medium term,

long term and short term. Short term credit is required for the purchasing

manure, seeds etc medium term is provided for purchase of agriculture

equipments and cattle. And lastly Ling term for making permanent

improvement of land.



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4 CENTRAL BANK

It is the top of Banking institutions operating in the country. It does notcomplete with other banks for profits, but acts as a Bankers Bank and lender

of last resort.

5 SAVING BANK

It encourages the habits of saving among people of community under

such type of banking deposits received or not with drawels on demand.

Beyond a certain limit. Any with draw all beyond a certain unit requires a

prior notice.

6 EXCHANGE BANK

These banks finance mainly the Foreign Exchange Business that is the

Export and Import Trade of a country. As they mainly finance foreign

exchange business, they are called Exchange Banks.



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CHAPTER -3

OBC BANK PROFILE

History

OBC Vision And Mission

Development

Management Profile

Organization Structure

Major Highlights of OBC

Achievements



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OBC BANK PROFILE

History

Oriental Bank of Commerce Establish on 19th February, 1943 , in

Lahore (Then a city of British India , and currently in Pakistan ), is one of thepublic sector Banks in India. Oriental Bank Of Commerce made a modest

beginning under its Founding Father, Late Rai Bahadur , Lala Sohan Lal , the

first Chairmen of the Bank.

Within Four years of coming in to existence, the Bank had to face the

Holocaust of the partition. Branches in newly formed Pakistan had to be

closed down and Registered Office had to be Shifted from Lahore to

Amrisar. Late Lala Karam Chand Thapar , yhe Then Chairman of the Bank,

in a unique gesture honoured the commitments made to the depositors from

Pakistan and paid every rupee to its departing customers. The foundation of

customer service thus laid has ever since remained Oriental Banks prime

philosophy and has been nurtured well as a legacy by all its successors, year

after year.

It is evident from the recent amalgamation of GTB with us that the best

of both enabled our bank to become the first bank to achieve 100% CBS,

OBC VISION AND MISSION

OBC VISION

To be a sound all India, customer centric, efficient retail bank with

contemporary size, technology and human capital; endeavouring to enrich

lives across all sections of society; and committed to upholding the highest

standards of corporate governance.



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OBC MISSION

To provide the finest banking services by upgrading hu8man capital

and infusing advanced technology, thereby achieving total customer

satisfaction; and being reckoned as the Best Bank in the Industry on allefficiency parameters.

To enhance shareholders wealth by ensuring sound growth of business

and make valuable contribution to national economic growth.

Development

The Oriental Bank of Commerce Established on 19th February 1943 in

Lahore (then the city of British in India, And currently in Pakistan). Oriental

Bank of Commerce Shimoga Branch Established on a 15 October 2008. At

the present Oriental Bank Of Commerce have 24 Branches in Karnataka.

OBC BRANCHES IN KARNATAKA

Branch Location city TEL.No.1

CMH ROAD INDRA BANGLORE 25280930

NEW TIPPA SANDRA BANGLORE 25203337

JAYANAGARA 4TH BLOCK BANGLORE 26541430JAYNAGARA 9th BLOCK BANGLORE 41627007

KORAMANALA BANGLORE 25504146

M.G.ROAD BANGLORE 25596625

RICHMOND ROAD BANGLORE 22105762

SADASHIVA NAGAR BANGLORE 23612188

YELAHANKA NEW TOWN BANGLORE 28561646

YELANKA NH-7 BANGLORE 28565162

FRAZER TOWN BANGLORE 25465406

RAMANAGARAM BANGLORE 27276994

SHIMOGA SHIMOGA 222290

HOSPET HOSPET 222861

GOKAK GOKAK 2400922

CLUB RD, HUBLI HUBLI 224043

NEW CONTTON MARKET,HUBLI HUBLI 2254312

BALMATTA RD. MANGLORE 2355298

BUNTS HOTEL RD. MANGLORE 2423751



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DEWANS ROAD MANGLORE 2444824

KOTEKARA MANGLORE 2421424

JAYALAKSHMIPURAM MYSORE 2204949

KUVEMPUNAGAR MYSORE 2346476



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Management Profile

. Chairman and Managing Director

Sh. Alok Kumar Misra

Executive Directors

Sh.H.Ratnakar HegdeSh. S.C.Sinha

Board of Directors

Smt. Sumita DawraSh. S.K.Newley



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Sh. Umesh Kr. Khaitan Sh. C.K. Sabharwal

Sh. Kamal Bhushan Sh. Vijay Jagirdar

Sh. V.V. Sai Reddy Dr. R.S. Maharishi

Sh. T. Valliappan Sh. K.B.R. Naidu

Top Management Team

S.C. Sharma S.K. Sharma C.M. Khurana



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Vikram

Kochhar

H.K. Madan Atul Gautam

V.K. Kamboj R.M. Sharma M.S. Shetty

Rajeev RishiSurender K. Sharma

J.K. Malhotra

A.K. TangriPradeep Aggarwal M.S. Randhawa

A.C. Hari J.M.A. David B.K. Mitra



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A.K.Munjal



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Organization Structure of OBC

Chairmen

Managing Director

Deputy Managing Director

Chief General Manager

Deputy General Manager

Assistant General Manager

Branch Manager

Other Staff



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MAJOR HIGHLIGHTS 2007-08:

Bank achieves 100% CBS in all Branches/ Retail Outlets (1402).

Write off of amortised GTB Losses advanced by a year (Rs 487 Crores),

Dividend maintained (47%).

Total Business exceeds Rs. 1.33 lacs Crores. Poised to achieve Total

Business of Rs 2 lacs Crores by 2010.

Customer base crosses 10.40 million with greater focus on Demand

Deposits.

Greater focus on Rural Development & Financial Inclusion Biometric

ATM and Mobile Banking Launched.

OBC Leverages Technology Adds innovative products & services:

Online Equity Trading, OBC e-Shopping, OBC e-Taxes, Online Education

Loans.

Overseas foothold to be achieved shortly with representative office in

Dubai, Plans for Branch at Lahore, Banks birth place.

Joint Venture with HSBC and Canara Bank entered into for Life Insurance

Business.

KEY PERFORMANCE HIGHLIGHTS

TOTAL BUSINESS Rs. 1,33,184 Crores UP BY 22 %

Total business has gone up by Rs. 23793 Crores (by 22 %) to Rs.1,33,184 Crores

as on March 2008 from Rs.1,09,391 Crores as on March 2007.

CAPITAL ADEQUACY RATIO - 12.12%

CAR as of March 2008 is 12.12 % as against 9% prescribed by RBI.



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GROSS NPA - 2.31 %

Gross NPA reduced to Rs.1280 Crores (2.31%) as on March 2008 from Rs. 1454

Crores (3.20%) as on March 2007.

NET NPA: 0.99%

Net NPA stands at Rs 538 Crores as on March 2008.

NET PROFIT AT Rs. 841 Crores

Net Profit after tax up at Rs. 841 Crores for the year ended March 2008 as againstRs. 827 Crores for the year ended March 2007.

BUSINESS PER EMPLOYEE Rs. 9.25 Crores

Employee Productivity has gone up to Rs. 9.25 Crores as on 31st March 2008

from Rs.7.43 Crores as on 31st March 2007.

BUSINESS PER BRANCH Rs 100.67 Crores

Business per branch crosses the landmark figure of Rs.100 Crores and rises to Rs

100.67 Crores as on 31.03.08 from Rs. 85.93 Crores as on 31.03.07

DEPOSITS AND ADVANCES:

Mar 07 Mar 08 Growth Increase

Deposits 63996 77857 13861 21.7%Advances (Gross) 45395 55327 9932 21.9%

Deposits have grown by 21.7 % & Advances have grown by 21.9 %.

PRIORITY SECTOR LENDING



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MARCH

07

% TO NET

ADVANCES

MARCH

08

% TO NET

ADVANCES

Y-o-Y Gr

%

Priority Credit

O/s15955 36% 18760 42.50% 17.50%

Agriculture

Advances5732 11% 6930 12.35% 20.90%

SE Advances 3364 8% 5015 11.36% 49.07%

SMEAdvances

5047 12% 6228 14.11% 23.40%

Priority Sector Lending stood at Rs. 18760 Cr as on March 2008 as against

15955 Cr as on March 07 which shows an increase of 17.5%.

SMALL ENTERPRISES

SE advances have risen to Rs.5015 Crores as on March 08 as against Rs

3364 Crores as on March 2007(growth of 49%).

OPERATING EFFICIENCY

Non Interest Income ( Rs. in Crores )

Mar 07 Mar 08 IncreaseNon Interest Income 603 617 14

Out of which Treasury Income 111 154 43

EPS and Book Value



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Earnings Per Share (after write off) as on 31.03.2008, works out to Rs.

14.10 as against Rs.23.18 previous year. Book Value stands Rs. 226.15 per

share as on 31.03.08.

OBC POSTS STRONG GROWTH FOR H1 2008

Oriental Bank of Commerce declared its half yearly results for the period

ending September 2008, today, at Delhi. Addressing the media Sh. Alok K

Misra, Chairman & Managing Director informed that the business-mix of the

Bank had increased to Rs. 1,48,489 crores as on 30th September 2008, thereby

registering a growth of 27.96% (YoY). Aggregate Deposits grew by 26.29%

(YoY) and stood at Rs. 87,368 crores, while Gross Advances showed growth

of 30.42% (YoY) at Rs 61,121 crores.

Net profit jumped to Rs 457 crore in H1 2008 as compared to Rs 314 crores as

on H1 2007, registering an 45.59% increase.

Banks CRAR stood at 12.03% (Tier I 8.89% and Tier II 3.14%).

Gross NPAs declined to 1.93% from 2.96% (YoY) while Net NPAs camedown to 0.86% from 0.99% as on March 2008.

Operating Profits grew by 49.40% on Q2 to Q2 basis, while Net Interest

Income grew by 30.57% during the same period. Non Interest Income grew to

Rs 415 crore as on September 2008 from Rs 289 crores as on September 2007,

thereby registering a growth of 43.62%.

Oriental Bank of Commerce continues to be amongst the leaders in Public

Sector Banks with Business per Employee increasing to Rs. 10.20 crore.

Business per Branch went up to Rs. 110.24 crore during the same period.

The Bank, with 100% of its Branches on Core Banking platform, offers a wide

range of e-Z banking solutions like Internet Banking, Biometric ATMs,



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Online trading of shares, Online payment of taxes, instant remittance through

electronic channels like RTGS/NEFT amongst others.

Bank is committed to reach a business mix of Rs 2 lakh crore by March 2010

with a network of 1500 branches. Semi Urban and Rural branches shall be its

growth catalysts.



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ORIENTAL BANK OF COMMERCE

PRESS RELEASE

30th January,2009.

New DelhiOBC POSTS STRONG GROWTH FOR Q3 2008.

Q3 NET PROFIT UP 82.11%

Oriental Bank of Commerce declared its Nine Months results for the period

ending December 2008, today, at Delhi. Addressing the media Sh. Alok K

Misra, Chairman Managing Director informed that the business-mix of the

Bank had increased to Rs. 1,56,991 crores as on 31st December 2008,

thereby registering a growth of25.19% (YoY). Aggregate Deposits grew by

23.18% (YoY) and stood at Rs. 91,374 crores, while Gross Advances showed

growth of28.10% (YoY) at Rs 65,617 crores.

Net profit jumped to Rs 252.19 crore in Q3 ending 31st December 2008 as

compared to Rs. 138.48 crores during corresponding period last year,

registering an 82.11% increase. On Y-o-Y basis it increased by 56.85% to

Rs.709.60 Crores from Rs.452.66 Crores.

CRAR as on 31st December 2008 stood at 12.01 % as against the RBI

benchmark of 9%.

Gross NPAs declined to1.66% from 2.73% (YoY) while Net NPAs came

down to 0.76% from 0.99% as on March 2008.

Operating profit grew on YOY basis by 28.25% to Rs.1146.67 Crores as on

31st December, 2008 from Rs.894.06crore as on 31st December 2007 after

providing Rs.200.00 Crores for Employee Benefits (Rs.90.00 Cr for Wage

revision and Rs.110.00 Cr for Retirement Benefits under AS-15). If such

provisioning is excluded the Operating Profit on Y-o-Y basis would have

shown increase of 50.62 % an increase of Rs.452.61 Crores.



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Operating Profit grew by 30.17 % to Rs.386.23 Crores as on 31.12.2008

from Rs.296.72 Crores as on 31.12.2007 on Q3 to Q3 basis.

Net Profit increased on YOY basis by 56.76% to Rs.709.60 Crores as on

31.12.2008 from Rs.452.66 crore as on 31st December 2007. On Q3 to Q3

basis it increased by 82.11% to Rs.252.19 Crores from Rs.138.48 Crores.

Non-interest income grew on YOY basis by 60% to Rs.730.00 Crores as on

31.12.2008 compared to Rs.456 crore as on 31st December 2007. On Q3 to Q3

basis it increased by 89% to Rs.316.00 Crores from Rs.167 Crores.


Sector Banks with Business per Employee increasing to Rs. 10.78 crore from

Rs.8.43 Crores registering a growth of27.87%.

The Bank has presently 1394 Branches and 70 Extension counters having

presence in 22 States and 4 Union Territories.

Bank has applied for a total of 156 Branches Licenses to the RBI of which 30

are in Metropolitan, 76 in Urban, 34 in Semi-urban, 16 in Rural Areas.

The Business Per Branch has gone up to Rs.113.68 Crores as on 31st

December,2008 from Rs.96.54 Crores as on 31st December,2007, registering

a growth of17.75 %.

Existing Number of Branches stood at 1394 Plus 70 Extension Counters

covering 22 States and 4 Union Territories.









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growth catalysts.


HEAD OFFICE, NEW DELHI

ANNEXURE TO PRESS RELEASE

30th January,2009

FINANCIAL HIGHLIGHTS FOR THE PERIOD ENDING 31.12.2008

Business Growth

Total business grows by 25.19% on YOY basis. Aggregate business reaches

Rs. 1,56,991 crore as on 31st December 2008 against Rs. 1,25,404 crore as

on 31st December 2007.

Deposit grows on YOY basis by 23.18% to Rs.91,374 Crores as on 31st

December,2008 from Rs. 74,180 crore as on 31st December 2007.

Advances grow on YOY basis at 28.10% to Rs.65,617 Crores as on 31st


Education loan showed a sharp jump of 38.35% at Rs. 754 crore as against Rs.

545 crore during the same period last year.

Capital Adequacy


benchmark of 9%.

Profitability

Net Interest Income grew by 41.13% Q3 2007 to Q3 2008.

Operating profit grows on YOY basis by 28.25% to Rs.1146.67 Crores

as on 31st December, 2008 from Rs.894.06 crore as on 31st December

2007 after providing Rs.200.00 Crores for Employee Benefits

( Rs.90.00 Cr for Wage revision and Rs.110.00 Cr for Retirement

Benefits under AS-15). If such provisioning is excluded the Operating



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Profit on Y-o-Y basis would have shown increase of 50.62 % an

increase of Rs.452.61 Crores.


from Rs.296.72 Crores as on 31.12.2007 on Q3 to Q3 basis. It increasedby 28.25% to Rs.1146.67 Crores from Rs.894.06 Crores on Y-o-Y

basis.

Net Profit increased on YOY basis by 56.76% to Rs.709.60 Crores as

on 31.12.2008 from Rs.452.66 crore as on 31st December 2007. On Q3

to Q3 basis it increased to 82.11% to Rs.252.19 Crores from Rs.138.48

Crores to Rs.240.00 Crores.

Non-interest income grew on YOY basis by 60% to Rs.730.00 Crores

as on 31.12.2008 compared to Rs.456 crore as on 31st December 2007.

On Q3 to Q3 basis it increased by 89% to Rs.316.00 Crores from

Rs.167 Crores.

NPA Recoveries

Gross NPA of the bank has come down to Rs.1089.40 Crores as on

31.12.2008 from Rs.1399.93 crores as on 31st December 2007 therebyreducing the gross NPA to 1.66% as from 2.73% on Q3 to Q3 basis.

Net NPA has come down to 0.76% as on 31st December,2008 from

0.99% as on 31st March 2008.EPS & Business per employee/branch

EPS & Business per employee/branch

Earning per share improved to Rs.9.53 (annualized) as on 31st

December,2008 from Rs.5.53 (annualized) as on 31st December 2007

showing a growth of72.33%.

Business per employee jumps to Rs.10.78 Crores as on 31st

December,2008 from Rs.8.43 crore as on 31st December 2007



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registering a growth of27.87%.

Business per branch goes up to Rs.113.68 Crores as on 31st

December,2008 from Rs.96.54 crore as on 31st December 2007 with a

growth of17.75 %.

BUSINESS INITIATIVES

Insurance Joint Venture

Joint Venture with Canara Bank and HSBC launched on 16th June 2008

after getting all regulatory approvals. Marketing of insurance products

commenced through branch network. Bank has already issued policies

3328 Policies with First Premium aggregating Rs.20.71Crores as on

31.12.2008.

Quality Credit growth

Growth of quality credit through segregated business lines under Large

Corporate, Mid Corporate & SME, Retail credit.

IT Enabled Products- eZ Banking

Younger generation of customers targeted through IT enabled products

and services

o Online Education Loans

o Online trading of shares

o Online payment of taxes OLTAS

o E-Shoppe

o Internet Banking

o Cashmate Cards for students

o Instant remittances through electronic channels RTGS/NEFT

o Biometric ATMs and Mobile ATMs for financial inclusion

o SMS-alert launched

SMS-alert launched



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Optimising performance with HR Initiatives

OBC has initiated its recruitment process to hire over 1834 employees

in the current year. To enhance customer service level, more than 7003

personnel have been imparted training.Thrust areas for 2008-09

Leveraging technology through new products and services.

Increasing customer base.

Thrust for business from additional Rural and Semi-Urban areas.

To reach a Business Mix of Rs.200000 crore and branch network of

over 1500 branches by March 2010.Geographical Spread

Head Office

Corporate Finance Branches

Our Industrial Finance Branches

Our Personal Banking Branch

Branches Dealing in Foreign Exchange

Regional Office

Our Small Scale Industry Finance Branches

https://www.obcindia.co.in/obcnew/site/geo_spread_des.aspx?geo_id=1https://www.obcindia.co.in/obcnew/site/geo_spread_des.aspx?geo_id=2https://www.obcindia.co.in/obcnew/site/geo_spread_des.aspx?geo_id=3https://www.obcindia.co.in/obcnew/site/geo_spread_des.aspx?geo_id=4https://www.obcindia.co.in/obcnew/site/b_office_FE.aspxhttps://www.obcindia.co.in/obcnew/site/r_office.aspxhttps://www.obcindia.co.in/obcnew/site/geo_spread_des.aspx?geo_id=5https://www.obcindia.co.in/obcnew/site/geo_spread_des.aspx?geo_id=1https://www.obcindia.co.in/obcnew/site/geo_spread_des.aspx?geo_id=2https://www.obcindia.co.in/obcnew/site/geo_spread_des.aspx?geo_id=3https://www.obcindia.co.in/obcnew/site/geo_spread_des.aspx?geo_id=4https://www.obcindia.co.in/obcnew/site/b_office_FE.aspxhttps://www.obcindia.co.in/obcnew/site/r_office.aspxhttps://www.obcindia.co.in/obcnew/site/geo_spread_des.aspx?geo_id=5


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PRESS RELEASE

30th January,2009.

New DelhiOBC POSTS STRONG GROWTH FOR Q3 2008.

Q3 NET PROFIT UP 82.11%

Oriental Bank of Commerce declared its Nine Months results for the period

ending December 2008, today, at Delhi. Addressing the media Sh. Alok K

Misra, Chairman Managing Director informed that the business-mix of the

Bank had increased to Rs. 1,56,991 crores as on 31st December 2008,

thereby registering a growth of25.19% (YoY). Aggregate Deposits grew by

23.18% (YoY) and stood at Rs. 91,374 crores, while Gross Advances showed

growth of28.10% (YoY) at Rs 65,617 crores.

Net profit jumped to Rs 252.19 crore in Q3 ending 31st December 2008 as

compared to Rs. 138.48 crores during corresponding period last year,

registering an 82.11% increase. On Y-o-Y basis it increased by 56.85% to

Rs.709.60 Crores from Rs.452.66 Crores.


benchmark of 9%.

Gross NPAs declined to1.66% from 2.73% (YoY) while Net NPAs came

down to 0.76% from 0.99% as on March 2008.

Operating profit grew on YOY basis by 28.25% to Rs.1146.67 Crores as on

31st December, 2008 from Rs.894.06crore as on 31st December 2007 after

providing Rs.200.00 Crores for Employee Benefits (Rs.90.00 Cr for Wage

revision and Rs.110.00 Cr for Retirement Benefits under AS-15). If such

provisioning is excluded the Operating Profit on Y-o-Y basis would have

shown increase of 50.62 % an increase of Rs.452.61 Crores.



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from Rs.296.72 Crores as on 31.12.2007 on Q3 to Q3 basis.

Net Profit increased on YOY basis by 56.76% to Rs.709.60 Crores as on

31.12.2008 from Rs.452.66 crore as on 31st December 2007. On Q3 to Q3

basis it increased by 82.11% to Rs.252.19 Crores from Rs.138.48 Crores.

Non-interest income grew on YOY basis by 60% to Rs.730.00 Crores as on

31.12.2008 compared to Rs.456 crore as on 31st December 2007. On Q3 to Q3

basis it increased by 89% to Rs.316.00 Crores from Rs.167 Crores.


Sector Banks with Business per Employee increasing to Rs. 10.78 crore from

Rs.8.43 Crores registering a growth of27.87%.

The Bank has presently 1394 Branches and 70 Extension counters having

presence in 22 States and 4 Union Territories.

Bank has applied for a total of 156 Branches Licenses to the RBI of which 30

are in Metropolitan, 76 in Urban, 34 in Semi-urban, 16 in Rural Areas.

The Business Per Branch has gone up to Rs.113.68 Crores as on 31st

December,2008 from Rs.96.54 Crores as on 31st December,2007, registering

a growth of17.75 %.

Existing Number of Branches stood at 1394 Plus 70 Extension Counters

covering 22 States and 4 Union Territories.









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growth catalysts.


HEAD OFFICE, NEW DELHI

ANNEXURE TO PRESS RELEASE

30th January,2009

FINANCIAL HIGHLIGHTS FOR THE PERIOD ENDING 31.12.2008

Business Growth

Total business grows by 25.19% on YOY basis. Aggregate business reaches

Rs. 1,56,991 crore as on 31st December 2008 against Rs. 1,25,404 crore as

on 31st December 2007.

Deposit grows on YOY basis by 23.18% to Rs.91,374 Croresas on 31st


Advances grow on YOY basis at 28.10% to Rs.65,617 Crores as on 31st


Education loan showed a sharp jump of 38.35% at Rs. 754 crore as against Rs.

545 crore during the same period last year.

Capital Adequacy


benchmark of 9%.

Profitability

Net Interest Income grew by 41.13% Q3 2007 to Q3 2008.

Operating profit grows on YOY basis by 28.25% to Rs.1146.67 Crores

as on 31st December, 2008 from Rs.894.06 crore as on 31st December

2007 after providing Rs.200.00 Crores for Employee Benefits

( Rs.90.00 Cr for Wage revision and Rs.110.00 Cr for Retirement

Benefits under AS-15). If such provisioning is excluded the Operating



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Profit on Y-o-Y basis would have shown increase of 50.62 % an

increase of Rs.452.61 Crores.


from Rs.296.72 Crores as on 31.12.2007 on Q3 to Q3 basis. It increasedby 28.25% to Rs.1146.67 Crores from Rs.894.06 Crores on Y-o-Y

basis.

Net Profit increased on YOY basis by 56.76% to Rs.709.60 Crores as

on 31.12.2008 from Rs.452.66 crore as on 31st December 2007. On Q3

to Q3 basis it increased to 82.11% to Rs.252.19 Crores from Rs.138.48

Crores to Rs.240.00 Crores.

Non-interest income grew on YOY basis by 60% to Rs.730.00 Crores

as on 31.12.2008 compared to Rs.456 crore as on 31st December 2007.

On Q3 to Q3 basis it increased by 89% to Rs.316.00 Crores from

Rs.167 Crores.

NPA Recoveries

Gross NPA of the bank has come down to Rs.1089.40 Crores as on

31.12.2008 from Rs.1399.93 crores as on 31st December 2007 therebyreducing the gross NPA to 1.66% as from 2.73% on Q3 to Q3 basis.

Net NPA has come down to 0.76% as on 31st December,2008 from

0.99% as on 31st March 2008.EPS & Business per employee/branch

EPS & Business per employee/branch

Earning per share improved to Rs.9.53 (annualized) as on 31st

December,2008 from Rs.5.53 (annualized) as on 31st December 2007

showing a growth of72.33%.

Business per employee jumps to Rs.10.78 Crores as on 31st

December,2008 from Rs.8.43 crore as on 31st December 2007



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registering a growth of27.87%.

Business per branch goes up to Rs.113.68Crores as on 31st

December,2008 from Rs.96.54 crore as on 31st December 2007 with a

growth of17.75 %.

BUSINESS INITIATIVES

Insurance Joint Venture

Joint Venture with Canara Bank and HSBC launched on 16th June 2008

after getting all regulatory approvals. Marketing of insurance products

commenced through branch network. Bank has already issued policies

3328 Policies with First Premium aggregating Rs.20.71Crores as on31.12.2008.

Quality Credit growth

Growth of quality credit through segregated business lines under Large

Corporate, Mid Corporate & SME, Retail credit.

IT Enabled Products- eZ Banking

Younger generation of customers targeted through IT enabled products

and services

o Online Education Loans

o Online trading of shares

o Online payment of taxes OLTAS

o E-Shoppe

o Internet Banking

o Cashmate Cards for students

o Instant remittances through electronic channels RTGS/NEFT

o Biometric ATMs and Mobile ATMs for financial inclusion

o SMS-alert launched

SMS-alert launched



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Optimising performance with HR Initiatives

OBC has initiated its recruitment process to hire over 1834 employees

in the current year. To enhance customer service level, more than 7003

personnel have been imparted training.

Thrust areas for 2008-09

Leveraging technology through new products and services.

Increasing customer base.

Thrust for business from additional Rural and Semi-Urban areas.

To reach a Business Mix of Rs.200000 crore and branch network of

over 1500 branches by March 2010.



43/113

CHAPTER 4

SPECIAL LOAN SCHEMES OF OBC

Introduction of loan

Meaning

Special loan schemes

Purpose

Eligibility

Amount of loan

Security

Margin

Process-fee

Repayment

Advantages of loan

Disadvantages of loan



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SPECIAL LOAN SCHEMES OF OBC

Introduction

Loan is getting money with charged rate of interest from

financial institutions like:- banks, Cooperative society, private and public

financial institutions etc.......

Banks are the commercial institutions collect the money from

various deposit schemes and lending money to the needed peoples with

charged rate of interest.

The human body perpetual wanting animal if one want is

satisfied by him

At the same time another want will be credited by him . almost all these

wants are fulfilled by the money. so some times human essentially

getting money from loan.

In day by day banking activities are developed and change

according to needs and requirements of the customers.

Meaning

Loan is the one of the Responsibility of the person. He is

Responsible for barrowed money with charged their rate of interest.

Loan is a lump sum amount getting from Financial

institutions for their necessary fulfillments.



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Special loan schemes

The Oriental Bank of Commerce Introduced different types of loan

Schemes are given below:

Hose loan

Vehicle loan

Education loan Scheme

Personal Loan Scheme

Loan to Professionals

Loan to Woman.

Other Loans

Housing loan

Purpose:

For Construction/ purchase of Residential House/ Flat.

Eligibility:

Individuals having an assured source of Income viz. Salaried

Employees, self employed professionals, businessman, farmers, HUF etc.Amount of Loan:

For Businessmen:

40 times Gross Monthly Income with a condition that the net take home after

all deductions comes not less than 30%

For Salaried Persons:

60 times Gross Monthly Income with a condition that the net take home after

all deductions comes not less than 30%.

Security:

Mortgage of property.

Margin:

Loan Amount Upto Rs.5 Lacs - 10%



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Loan Amount Above Rs.5 Lacs &Upto Rs.20 Lacs - 15%

(revised margin shall be applicable in home loans sanctioned w.e.f. 19.12.08

to 30.06.09)

Loan above Rs.20.00 lac 25%In case of Home Loans upto Rs.20.00 lacs sanctioned on or after

19.12.08, the bank will provide free life insurance cover for the entire amount

of outstanding loan upto Rs.20.00 lac to the borrower. (this facility shall be

allowed in home loans sanctioned w.e.f. 19.12.08 to 30.06.09)

Process Fee:

Nil for fresh Loans upto Rs.20.00 lac

(revised concession shall be applicable in home loans sanctioned w.e.f.

19.12.08 to 30.06.09)

For Loans above Rs.20.00 lacs 0.50% of the loan amount subject to a

maximum of Rs.12,500/-.

Repayment:

Maximum within 20 years or till the borrower attains 70 years of age or

repayment shall not extend beyond the age of retirement, whichever is later.

Repairs / Renovation/ Furnishing (For General Public)

Purpose:

For Repairs / Renovation/ Furnishing of house.

Eligibility:

Individuals having an assured source of income viz. salaried employees, self

employed professionals, businessman, farmers, HUF etc.

Amount of Loan:

Max. Rs.10.00 lacs or 30% value of House/ Flat whichever is lower.

Security:

Mortgage of property.

Margin:

15%



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Fixed rates shall be re-set by the Bank after every 2 years at its sole

discretion.

Since the floating rates are linked to PLR, the rates shall be re-set as and

when there is any change in PLR.Repayment:

Maximum within 10 years.

Car loan

Car/Vehicle Loan Scheme

Purpose :

For purchase of new

scooter/motor cycle/ car/jeep

etc. (Non commercial use to be

registered as Private vehicle)

Eligibility:

For two wheelers - Rs. 6,000/- p.m (Gross Salary)

For cars - Rs.10,000/- p.m (Gross Salary).

Amount of Loan:

30 months Net take home Salary/Income subject to the condition that net take

home salary after deduction of proposed loan instalment should not be less

than 40% of the gross salary. Income of the spouse can also be considered if

spouse agrees to guarantee the loan. In case of existing home loan borrowers,

net take home salary should not be less than 30% of gross salary after

payment of the proposed loan instalment.

Maximum Loan Ceiling:

For two wheelers - 90% of the cost of two wheeler including registration

charges, insurance and road taxes.

For new cars - Rs.10 lacs.

Security:



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Hypothecation of the Vehicle & Personal Guarantee(s) required.

Margin:

For two wheelers - 10%

For cars -15%Process Fee

0.50% of loan amount with minimum of Rs. 500/-.

Repayment:

For Two Wheeler

60 months (maximum)

For New Car/MUV

84 months (maximum)

In case of employee, subject to remaining period of service/ repayment

capacity.

For second hand Cars : Maximum Rs.7.50 lacs margin @ 20.00% under

TVS(True Value Scheme) and 30% for Non TVS @ PLR+0.75% for

repayment upto 36 months and PLR+1.25% for repayment above 36 months.

SCHEME FOR FINANCING AUTOS/TAXIS

No of Vehicles

Maximum of 10 (ten) vehicles per entity irrespective of it being an individual,

partnership, sole proprietorship, private Ltd./ Public Ltd Companies.

In case of Trusts, loan shall be considered only at Regional Office level as per

the existing guidelines in vogue.

Margin and Extent of Loan

25% of the cost of vehicle with a maximum of Rs.5.00 lacs.

Penal Interest.

In case of delayed payment, a penalty of 2% on the overdue amount for the

delayed period shall be charged.



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Process Fee

0.50% of loan amount with min. of Rs.500/-

Classification

Priority Sector under Small (services) Enterprises.Repayment

In 48 equated monthly installments. However, repayment can be considered

upto 60 months in deserving cases by the sanctioning authority on merits of

each case.

Collateral Security

Loan Amount Upto Rs.2.00 lacs- Two personal guarantees of adequate means

acceptable to the Bank.

Loan Amount Above Rs.2.00 lacs- Tangible collateral security in the shape of

property equivalent to 100% of the value of the loan. ORNSCs, FDR, LIP

(surrender value) and other chargeable Govt. securities equivalent upto 100%

of the loan.

Personal Loan Scheme

Purpose :

To meet personal/ family expenses like marriage/education/family functions .

For purchase of consumer durables, gold / gold ornaments.

To meet expenditure on medical treatment of self and/or dependent at

Hospitals/Nursing Homes registered with local Govt. bodies.

To meet travel expenses of legitimate travelers for himself & family members

to cover travel cost, hotel stay and other travel related expenses.

Eligibility:

1. Permanent and regular employee in Centre/State

Govt. Deptt. and other institutions like Universities, Schools/College,

PSUs, reputed hospitals, and well established corporate.

2. Minimum 3 years of service, including service

with the previous employer(s), if any.



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3. The net monthly salary should not be less then Rs

6,000/-.

4. The net take home salary should not be less than

30% of gross salary after deducting the EMI of the proposed loan.5. Professionals and doctors, pensioners of

Central/State Government, PSUs, Autonomous Bodies and Defence

pensioners shall also be eligible for loan

Relaxation in Eligibility

Minimum net monthly salary of Rs. 3000/- subject to fulfillment of the

following conditions for the regular employees of Central / State Govt. Deptt.

And other institutions like Universities, Schools / College, PSUs, reputed

Hospitals and well established Corporate.

Where the employer is maintaining the salary accounts of its

employees with the branch and monthly installment is recovered from the

salary account for adjustment of loan.

OR

Where there is specific agreement / tie up arrangement made between

employer and the Bank for education of loan installments from salary of the

employee in more than two accounts.

Amount of Loan

Upto 15 months net take home salary, subject to maximum of Rs.1.50

Lac

Income of spouse can be included, provided he/she guarantees the loan or

loan is availed jointly.

In case of pensioners 12 months pension subject to maximum of Rs

1.50 lac



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Nature of Facility

Term Loan

Overdraft limit (on liquidation basis in exceptional cases to Senior

Bureaucrats/Administrators/Judges & customers of high net worth).Margin

Nil

Process Fee:


Security

Charge over tangible assets, if created out of loan.

One personal guarantee preferably of fellow employee, subject to the

condition that one employee will not stand as guarantor in more than

two accounts.

Repayment

60 EMI (subject to remaining period of service)

In case of pensioners - Maximum 60 months within 70 years of the age of the

borrower.

Educational Loan Scheme

Purpose :

For higher

education(after

schooling).

Items eligible for

Finance:-

Admission fee/Monthly

fee/Examination fee,

Books, Stationery & equipments,



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Air fare for joining the course abroad, Boarding & lodging expenses of

hostel/boarding houses, where charges are standardised and paid to the

Management of the Boarding House. Any other expenses required to

complete the course like study tours, project work, thesis etc.

Eligibility:

Indian nationals not above 45 years of age those who secured admission in a

recognized course of an approved university (AICTE approved institutions)

OR institutes recognized by a statutory body.

Amount of Loan:

Education in India - Max. Rs.10.00 lacs.

Education Abroad - Max. Rs.20.00 lacs.

Security:

For Loans upto Rs.4.00 lac

No Collateral Security

Co-obligation of parents/guardian is must.

For Loans above 4 lacs and upto Rs.7.50 lacs

No Collateral Security required,

Co-obligation of parents/guardian is must

One satisfactory third party guarantee

Above Rs.7.50 lacs

Co-obligation of parents/guardian is obligatory.

Mortgage of immovable property or any other tangible security like

pledge of NSC/UTI/LIC (Surrender Value)/Bonds/

Banks deposits (Except under tax saving scheme) etc. . having value

at least equal to 100% of loan. Extension of charge on property already



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mortgaged with our Bank, subject to adequate residual value of

security.

Margin:

Upto 4 lacs - NIL

Above 4 lacs for education in India - 5%

Education Abroad - 15%

Concession on Rate of Interest :

Simple Interest shall be charged during study and moratorium period. The

concession of 1% in rate of interest to be allowed, if interest is serviced

regularly during the study and moratorium period. This concession shall be

allowed after expiry of moratorium.

Special Rate:

0.50% concession to women beneficiaries, SC/STs and disabled students.

Process Fee:

Upto 4 lacs - Rs. 100/-.

Above 4 lacs for education in India - Rs. 500/-

Education Abroad - Rs. 1000/-Repayment:

Within 84 EMIs commencing 12 months after course or 6 months after

getting the job, whichever is earlier.

Insurance:

Free Personal Accident Insurance upto Rs.20 lac.



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Loans to Doctors

Purpose :

Clinic Premises, P & M, Furniture & Fixtures, private vehicles, ambulancesand medical equipments etc.

Eligibility:

Qualified registered medical practitioners with min. qualification of BIMS/

BAMS/ BUMS/ DHMS/ BHMS/ BPT/ MBBS/ BDS and above.

Amount of Loan:

Rural & Semi urban: Rs. 50 lacs.

Urban & Metro: Rs.100 lacs.

Security:

For loan upto Rs.5.00 Lacs

Doctors having qualification of MBBS/BDS and Higher professional

degree:

No collateral security except one third party Personal guarantee of person

having adequate net worth preferably of spouse.

Doctors having qualification of MBBS/BDS and Higher professional

degree:

No collateral security except two third party Personal guarantee of person

having adequate net worth, one guarantee shall be of spouse.

For loan above Rs.5.00 lacs and upto Rs. 10.00 lac

Tangible collateral security equivalent to 50% of the loan amount and one

personal guarantee preferably of spouse.

For loans above Rs. 10.00 lac

Tangible collateral security equivalent to 75% of the loan amount and one

personal guarantee preferably of spouse



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In case loan is granted for acquiring premises, other term loans and working

capital requirement. The loan for the premises shall be secured by mortgage

of the property purchased and no additional collateral security may be

insisted, however, the borrower shall furnish tangible security equivalent to50% of the uncovered portion of other term loans including working capital

loan.

Margin:

20%

Repayment:

1. Total repayment period including moratorium period shall not exceed

seven years.

2. Maximum moratorium period shall not exceed one year based on the

justification and merits of the case.

3. Term loan to be repaid in equated monthly instalments.

Process fee:

0.50% of the limit sanctioned subject to minimum of Rs. 500.

Loans to Professionals

Purpose :

For purchase of Office Premises, P & M, Furniture & Fixtures, renovating

existing business premises private vehicles and other equipments.

Eligibility:

Registered practicing Lawyers, architects, Chartered Accountants, Engineers,

Journalists, Management Consultants, Software Engineers and any other

professional holding with a degree/diploma or who in the opinion of the Bank

is technically qualified.

Amount of Loan:



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Max. term loan of Rs.20 lacs.

Margin: 25%.

Security:

Upto Rs.5 lac: 50% of loan amount in the shape of collateral security and onepersonal guarantee, preferably of spouse.

Above Rs.5 lac: 75% of loan amount in the shape of collateral security and

one personal guarantee, preferably of spouse.

Mortgage of premises, if purchased.

Hypothecation of assets purchased.

In case the loan is required only for acquiring premises, no additional

collateral security shall be insisted.

For purchase of Car, security as per Car/Vehicle Loan shall apply.

Repayment:

maximum 84 months by equated monthly installments including moratorium

period not exceeding 12 months.

Process Fee:

0.50% of the limit amount subject to minimum of Rs. 500.

Clean Loan to Traders

Purpose :

For meeting Working capital and acquiring assets for business needs.

Eligibility:

Traders who are individuals, firms, companies, co-operative societies,

dealing in those goods, which are not prohibited by RBI/Govt.

Small business concerns/agencies providing services such as Xeroxing,

dry cleaning, licence to deal in petroleum products/LPG, drug licence

for the applicable business, petrol pump dealers, auto services centres,

ISD/STD/PCO booths and others.



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Amount of Loan:

Maximum composite loan of Rs.25.00 lacs

Security:

Cash Credit/ Term Loan upto Rs.2.00 lac

1. In case of Cash Credit Limit Hypothecation of stocks (Stock Statement

to be obtained on yearly basis & insurance to be done invariably).

2. Hypothecation of assets purchased out of loan amount.

3. Personal guarantee of adequate net worth acceptable to the Bank

4. NIL Collateral.

5. No Financial statements are required except statements of sales,

purchases, gross profits, overheads and net profit.

Loan/Limit above Rs.2.00 lac and upto Rs.5.00 lac

i. In case of Cash Credit Limit Hypothecation of stocks (Stock Statement

to be obtained on yearly basis & insurance to be done invariably).

ii. Hypothecation of assets purchased out of loan amount.

iii. Collateral security in the shape of NSCs, LIC policy (surrender value)

etc. with realisable value of atleast 25% alongwith one third party

guarantee of adequate net worth. OR mortgage of immovable property

having realisable value equivalent to 75% of the loan amount

sanctioned.

Loan/Limit above Rs.5.00 lac

Collateral security in the shape of NSCs, LIC policy (surrender value) etc.with realisable value of atleast 50% alongwith one third party guarantee of

adequate net worth. OR mortgage of immovable property having realisable

value equivalent to 100% of the loan amount sanctioned.

Margin:



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20%

Repayment:

Working capital limit to be reviewed every year. However, limit upto Rs.2.00

lac shall be renewed every three years. Term loan 3 to 7 years.Process Fee:


Loan to Defence Personnel

Purpose :

For purchase of consumer durables including motor cycle/scooter/sport

cycle/cycle and sports item etc. For meeting any type of house hold expenses

such as repair/renovation of the house, educational/ marriage/medical

expenses/family functions etc./travelling expenses in India and abroad, etc.

Eligibility:

All working Defence Personnels with minimum one year of service.

Personnel of para military forces like BSF,ITBP, CRPF, Coastal Guards,

CISF, Assam/J&K Rifles are also eligible.

Amount of Loan:

15 times of Net take home monthly salary subject to following ceilings:

Commissioned officers: Maximum upto 3.00 lac.

Junior Commissioned Officers: Maximum upto 2.50 lac.

Non Commissioned Officers:Maximum upto 1.50 lac

Security:

Charge over assets acquired out of loan.

Margin:

Nil

Repayment:

Equal to the period of stay not exceeding 36 months.

Process Fee:



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0.50% of loan amount with minimum of Rs. 500/-. 12test

Loan to SMEs

i. Salient features of the Credit Guarantee Fund Trust for Micro andSmall Enterprises (CGTMSE)

o The eligible loan limit under the Scheme is now Rs.50 lakhs.

o The credit guarantee cover has been raised from 75% to 80%

for the following category of loans:

a. Loans to Micro enterprises upto Rs. 5 lakh; and

b. Loans to Micro and Small enterprises operated and/ or

owned by women.

o The coverage of the Scheme will now be extended to all new

and existing Micro and Small Enterprises (both in the

Manufacturing Sector as well as Service Sector).

Loan to women

Oriented Mahila Vikas YojanaPurpose:

To meet Credit needs of Women Entrepreneur.

Eligibility:

Women Entrepreneurs enterprise consisting of all units managed by one or

more in proprietary concerns or in which she/they individually or jointly have

a share capital of not less than 51% as partners/ shareholders/ directors of a

private ltd. company/members of a co-operative society.

Amount of Loan:

Need Based

Security:



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No collateral security upto Rs.10 lacs and in case of SSI no collateral security

required up to Rs.25 lacs.

Only Hypothecation of Assets created out of Banks finance be taken as

security.Margin:

SSI

Other than SSI

As applicable under the SSI Segment.

Upto 25000 - NIL

Above 25000 - 15%

To 25%

Depending upon the quantum & purpose of loan.

In case of SSI

As applicable under SSI Segment.

Other Than SSI

Upto Rs. 2 lacs at PLR

Above Rs. 2 lac & up to Rs. 10 lacs at PLR +1.5% Above Rs. 10 lacs at PLR +2.5%

Repayment:

Maximum upto 7 Years

Scheme for Professional & self Employed Women

Purpose:

Purchase of Fixed Assets(Term Loan) and for meeting Working Capital

needs.

Eligibility:

Professional & Self-employed Women

Amount of Loan:



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Maximum Total limit Rs.5.00 lacs including Working Capital limit of Rs.1.00

lacs

Security:

Charge over the Assets purchased out of Banks finance.Margin:

Upto Rs.25000/- - NIL

Above Rs.25000/- to 5.00 lacs - 15%

Repayment:

Term Loan 5-7 years (EMI)

Cash Credit to be reviewed/ renewed as per Banks system in vogue.

Scheme for Beauty Parlor/ Boutiques/ Saloons/Tailoring

Purpose:

Purchase of Fixed Assets(Term Loan) and for meeting Working Capital needs

Eligibility:

1. Proprietary concern of Women.

2. Partnership firms/Companies where majority of shares are held byWomen.

Amount of Loan:

Max. Total limit Rs.10 lacs including Working Capital Rs.5.00 lacs

Security:

Charge over the Assets purchased out of Banks finance.

Margin:

Upto Rs.25000/- - NIL

Above Rs.25000/- upto Rs.2.00 lacs - 15%

Above Rs.2.00 lacs upto Rs.10.00 lacs - 25%

Process Fee:




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Repayment :

Term Loan 5-7 years (EMI)

Cash Credit to be reviewed/ renewed as per system in-vogue.

Scheme for Financing Working Women

Purpose:

To meet House hold, Medical expenses or any other such needs for the

Women working in Central/State Govt./ PSUs/ Autonomous bodies/ Schools/

Colleges and other institutions and well established companies.

Eligibility:

Working Women (Permanent Employees with Min. 5 years Service and 5

years remaining service)

Amount of Loan:

Maximum up to Rs.2 lac

Security:

Third party Guarantee preferably of Fellow Employee

Margin:

NIL

Repayment:

Maximum 5 years (EMI)



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Other loans

Loan against Govt. SecuritiesPurpose:

To meet all types of personal/business expenses by way of overdraft or

demand loan.

Eligibility:

Individuals/ Firms/ Companies.

Amount of Loan:

Maximum of Rs.10 lacs.

Security:

Charge on securities of Govt./PSUs. Pledge of NSCs/IVP/ KVP/LICs etc or

any other such security transferable/assignable to the Bank.

Margin:

10% of surrender value of LIC Policy (surrender value certificate to be

submitted on annual basis in the month of April).

25% of the face/ accrued value of the security in other cases.

Process Fee:

Rs. 10/- per certificate with minimum Rs. 50/- excluding postal charges.

Repayment:

Overdraft is reviewed every year & term loan are to be for 36 months or

validity of security whichever is earlier.



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Agriculture loan

Kisan Credit Card-Oriented Green Card(OGS)

Purpose :Crop production needs/

Working Capital needs for

other Farm and Non-Farm

activities (allied activities), for

repair of Machinery,

Consumption needs etc.

Eligibility :

Farmers/ Cultivators/ Artisans

engaged in Farm and Non-Farm activities.

Amount of Loan :

Need Based. There is no ceiling.

Security :

Upto Rs. 50,000/-

Hypothecation of crops/goods .

Above Rs. 50,000/-

Margin :

NIL

Condition :

Borrower should route sale proceeds through this account.

Validity :

5 years.

Composite Credit Scheme for Agricultural Leading

Purpose:

For Credit needs of Farmers including those for Farm operations,

development of agriculture etc. & domestic expenditure.



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Eligibility:

All farmers.

Amount of Loan:

Maximum to the extent of 50% of the value of land offered as security orRs.7.50 lacs whichever is lower.

Security:

Hypothecation of Crops/ Assets created out of bank Finance.

Mortgage of Agriculture land valuing twice the amount of Loan.

Margin:

Upto Rs. 50,000/ - : Nil

Above. Rs. 50,000/- : 15%

Repayment:

Working Capital in the form of Revolving Credit.

Term Loan component upto7 years.

Advantages of loan

Loan is as very essential part of human life. Because already we are

know human wants are unlimited. .this wants are fulfilled by purchasing

wanted things. For the purchase money is very essential. These money some

times getting from Bank Loans.

Bank loans had Following are the Advantages

Loan avoids the money problems

Loan improves the standers of leaving of the person

Loan should helps to fulfilling the wants of the customers.



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The OBC Loan Schemes help to purchase of Residential House / Plot

from Loan Scheme.

Through the Education Loan Helps to the Students For Their Education.

Loan helps to the Womans By Providing Womans Loan Scheme.

Loan helps to the Agriculturist By Agriculture Loan Scheme and Also

Professionals By Professional Loan Scheme

Totally Loan Avoids Financial Problems of the People.

Limitations Of Loans

Loan had Lot of advantages And also it had some Limitations. These

limitations are given below.

Bank Charged High Rate of Interest.

Loan Repayment Period is limited. So it is not possible from customers.

It is very Risk to the customers

At the time of barrowing Loan the Banker should ask so many security by

the customers. Sub mission of such type of securities should not possible

from the customers.

By the Observing of above all Advantages and Limitations the

barrowing of Loan is very well use full to all of customers to improve

standard of leaving and also Economic leaving in the society.



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Chapter - 5

PREMIUM SERVICES

I Banking

Steps user Guide

FAQs- Net Banking

RTGS-(FAQs in RTGS

NEFT

Bancassurance



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PREMIUM SERVICES

Introduction

Oriental Banks iBanking Services have been launched to maximize

the customer satisfaction. The Oriental Banks iBanking Services are

available to all the customers of bank branches under Centralized Banking

Solution (CBS). The authorized customers can view their various accounts

Anytime (24*7) and Anywhere. iBanking Services are offered Free of Cost to

the Customers and can be availed by any Saving/ Current/ CC/ OD account

holders. Only Query based facilities shall be provided to Jointly operated

Savings/ Current/ OD/ Company accounts. Transaction facility shall not be

provided for such accounts. The iBanking URL is

https://www.obconline.co.in.

If you are using Oriental Banks iBanking for the first time and you

have received both the user-id & password, follow the steps given below for

login successfully:

Steps user Guide

Step 1: Logon to the internet and visit the website www.obcindia.co.in and

click on the Oriental Banks iBanking Link or visit the website

https://www.obconline.co.in.

Step 2: Enter your user-id and sign-on Password to authenticate yourself.

Step 3: It is mandatory for you to change the passwords (Both Login and

Transaction passwords) allotted to you. You need to first type in the Password

given in the mailer to do so.

Step 4: Enter the new password of your choice and confirm it by retyping it.

Step 5: Click on UPDATE to confirm the change. Message confirming the

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same will be displayed on the screen. Subsequent password changes can be

down using Customise >> Change passwordoption.

Step 6 : You need to browse through various options as per choice & in case

of any transaction viz Fund Transfer etc, you need to enter your transaction

password to authenticate the transactions.

You can now continue using Oriental Banks i Banking - the most

comprehensive, safe and easy way to access your account.

Facilities offered

The following services are being offered through Oriental Banks iBanking

Services:-

Services offered through Oriental Banks iBanking

1. Account Related Operations for all the accounts in the CBS branches

Accounts Related Operations

Online Balance Inquiry

View transactions

Statement of Account For a given period, range of Cheque nos &

Amount

Cheque Status Inquiry

Clearing Instruments Inquiry

Stop Payment of Cheques

2. Fund Transfer Operations

Funds Transfer to own accounts

Funds Transfer to other accounts within CBS Branches of OBC



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o Min. Amount : 1000 per transaction

o Max.Amount : 50,000 per transaction

o Per day Maximum Rs.2,00,000

3. Payments

External Payments viz. IRCTC (For Railway Reservation) and

Sharekhan.com for Funds Transfer Facility for Shares purchases.

Bank Charges Rs.11/- per ticket (including Service Tax)

IRCTC levies a service charge of Rs.15/- (Second / Sleeper) and Rs.20/-

(Higher Class) for the first passenger and an additional Rs.5/- for every

subsiquent passenger upto a maximum of Rs.25/- (Second / Sleeper) and

Rs.40/- (Higher Class)

4. Mails

Customers can send mails for clarifications/queries on Internet Banking.

Relationship Manager at IBC, Secunderabad gives reply to the queries /

requests raised by the customers, within 12hours.

5. Activity:

Customer can view various financial and non-financial activities

performed by him during a period of time.

6. Customize

You can customize your various information like

Change your passwords

Add Nick names to your accounts

Select primary accounts in case you have many accounts



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Change your various preferences like Date Format, Amount Format, Add

email id, Change your Salutation etc.

To avail these services the esteemed customers are required to follow the

simple procedure.

1. Register forOriental Banks iBankingServices

2. Obtain your user-id and passwords enabling you to access your account

through Internet Follow a simple procedure to logon to Oriental Banks

iBanking Services website (https://www.obconline.co.in) or

(www.obcindia.co.in)

Operational and Security guidelines

OPERATIONAL & SECURITY GUIDELINES ABOUT "iBanking"

As security is of paramount concern for using Internet Banking Services, you

must take care and follow the security tips as under:

A. General

1. Customer should user Internet Explorer version 5.0 or later version.

2. Customer can get the information about browser version from the browser

e.g. in Microsoft Internet explorer, in dropdown menu 'Help', 'About

Internet Explorer", it gives information about Browser version as well as

Cipher strength (128 bit).

3. Please ensure that SSL 2.0, SSL 3.0 is enabled in Internet Explorer Tools

option ( Tools >> Internet Option >> Advanced >> Go to Bottom of the

page).

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4. URL for OBC Internet Banking is https://www.obconline.co.in or it can

also be accessed through Banks website thereafter clicking iBanking

option.

5. Check for correctness of URL address.

6. Beware of fraudulent websites which look similar to the OBC I Banking

Ensure that you are on the Oriental Banks Internet Banking site before

disclosing any confidential information (iBanking password, Transaction

password etc. ) by checking the URL of the webpage.

7. Beware of scam e-mails which may contain a virus or be linked to a

fraudulent website in order to elicit your confidential information.

8. Install good anti-virus software, configure it properly & update it

regularly.

9. Always check the "padlock symbol" on the bottom right hand corner of

webpage to ensure that you are connected to a secure session with Oriental

Bank Of Commerce. This is the VeriSign security symbol and confirmsthat the site you are interacting with is secured and is

https://www.obconline.co.in

B. Safeguard your Password

Upon receipt of Oriental Banks iBanking password mailer from the Bank,

the customer should change the password assigned by the Bank.

The new password should be of minimum 6 characters and preferably be a

combination of Alpha, Numeric and Special characters.

Customers should regularly change their both Signon & Transaction

passwords.



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Customers should be advised to maintain strict secrecy of the passwords.

The password should be memorized.

While selecting the password, the customers should avoid numbers andletters that could be easily associated with them. Contact numbers, name,

initials and birth date should be avoided as passwords.

In case of doubt about compromising of the password, the customer

should immediately change the password.

C.Clear Cache browser/ Delete Temporary Internet Files - The customer

should be advised to follow

The following instructions:

For Microsoft Internet Explorer 5, select Tools> Internet Options. Choose the

'General' tab and click 'Delete Files' on the 'Temporary Internet Files' section

D. Other Security measures to be followed by the customer

At the Browser level:

Disable profile assistant in browser

Disable stored / per-session cookies in the browser

At the O/S level:

Disabling user-id & p/w storage assistance in Windows.

The user-id & both passwords (Signon/ Txn) should not be disclosed to

anyone including Bank staff.



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Avoid accessing Oriental Banks iBanking web site from PCs installed

in Public / open areas like cyber-cafes or libraries, which may have

S/w (or viruses) for capturing keystrokes / sensitive information in

memory swap files.

Do not disclose Personal Information like passwords, PIN, credit/ debit

card numbers not to be provided to any entity in response to e-mail

request.

Do not transact any Financial Transaction sitting infront/ alongwith

any person for Protection of Transaction password.

SECURITY MEASURES IN "Oriental Banks iBankingSERVICES"

Bank realizes that product and service design requires a strong

commitment to the proper management of the risks associated with electronic

commerce.

Your system Requirements

To use online banking, applications, or other secure forms on our site,

you will need Microsoft Internet Explorer 5.0 or higher with 128-bit

encryption. You may use / get information about browser version from the

browser e.g. In Microsoft Internet explorer, in dropdown menu 'Help', 'About

Internet Explorer' gives information about Browser version as well as Cipher

strength.

User ID/Password

No one can access your Oriental Banks iBanking account(s) without

your User-id and Password. The bank generates your User-id at the time of

account setup and communicates this information to you.


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