products & services offered by p& sind bank

7/29/2019 Products & Services Offered by p& Sind Bank

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CHAPTER-1

INTRODUCTION


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1.1 INDUSTRY PROFILE

HISTORY OF BANKING IN INDIA

There are three different phases in the history of banking in India.

1) Pre-Nationalization Era.

2) Nationalization Stage.

3) Post Liberalization Era.

1) Pre-Nationalization Era:

In India the business of banking and credit was practices even in very early

times. The remittance of money through Hundies, an indigenous credit instrument,

was very popular. The hundies were issued by bankers known as Shroffs,

Sahukars, Shahus or Mahajans in different parts of the country. The modern type

of banking, however, was developed by the Agency Houses of Calcutta.

During the early part of the 19th Century, ht volume of foreign trade was

relatively small. Later on as the trade expanded, the need for banks of the

European type was felt and the government of the East India Company took

interest in having its own bank. The government of Bengal took the initiative and

the first presidency bank, the Bank of Calcutta (Bank of Bengal) was established

in 1840. In 1840, the Bank of Bombay and IN 1843, the Bank of Madras was also

set up.

These three banks also known as Presidency Bank. The Presidency

Banks had their branches in important trading centers but mostly lacked in

uniformity in their operational policies. In 1899, the Government proposed to


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amalgamate these three banks in to one so that it could also function as a Central

Bank. However, the conditions obtaining during world war period (1914-1918)

emphasized the need for a unified banking institution, as a result of which the

Imperial Bank was set up in1921. The RBI (Reserve Bank of India) was

established in 1935 as the Central Bank of the Country. In 1949, the Banking

Regulation act was passed and the RBI was nationalized and acquired extensive

regulatory powers over the commercial banks.In 1950, the Indian Banking system

comprised of the RBI, the Imperial Bank of India, Cooperative banks, Exchange

banks and Indian Joint Stock banks.

2) Nationalization Stages:.

Nationalization of banks paved way for retail banking and as a result there has

been an alt round growth in the branch network, the deposit mobilization After

Independence, in 1951, the All India Rural Credit survey, committee of Direction

with Shri. A. D. Gorwala as Chairman recommended amalgamation of the Imperial

Bank of India and ten others banks into a newly established bank called the StateBank of India (SBI). The Government of India accepted the recommendations of

the committee and introduced the State Bank of India bill in the Lok Sabha on 16 th

April 1955 and it was passed by Parliament and got the presidents assent on 8 th

May 1955.

In 1959, the SBI (Subsidiary Bank) act was proposed and the

following eight state-associated banks were taken over by the SBI as its

subsidiaries.

Name of the Bank Subsidiary with effect from

1. State Bank of Hyderabad 1st October 1959


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2. State Bank of Bikaner 1st January 1960

3. State Bank of Jaipur 1st January 1960

4. State Bank of Saurashtra 1st May 1960

5. State Bank of Patiala 1st April 1960

6. State Bank of Mysore 1st March 1960

7. State Bank of Indore 1st January 1968

8. State Bank of Travancore 1st January 1960

With effect from 1st January 1963, the State Bank of Bikaner and State Bank of

Jaipur with head office located at Jaipur. Thus, seven subsidiary banks State Bank

of India formed the SBI Group.

On 19th July 1969, then the Prime Minister, Mrs. Indira Gandhi announced the

nationalization of 14 major scheduled Commercial Banks each having deposits

worth Rs. 50 crore and above.

Later the Government Nationalized six more commercial

private sector banks with deposit liability of not less than Rs. 200 crores on

15th April 1980, viz.

i) Andhra Bank.

ii) Corporation Bank.

iii) New Bank if India.

iv) Oriental Bank of Commerce.

v) Punjab and Sind Bank.

vi) Vijaya Bank.


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In 1969, the Lead Bank Scheme was introduced to extend banking

facilities to every corner of the country. Later in 1975, Regional Rural Banks were

set up to supplement the activities of the commercial banks and to especially meet

the credit needs and of course employment.

The first year after nationalization witnessed the total growth in the

agricultural loans and the loans made to SSI by 87% and 48% respectively. The

overall growth in the deposits and the advances indicates the improvement that has

taken place in the banking habits of the people in the rural and semi-urban areas

where the branch network has spread.

Consequences of Nationalization:

The quality of credit assets fell because of liberal credit extension policy.

Political interference has been as additional malady.

Poor appraisal involved during the loan meals conducted for credit disbursals.

The credit facilities extended to the priority sector at concessional rates.

3) Post-Liberalization Era---Thrust on Quality and Profitability:

By the beginning of 1990, the social banking goals set for the banking

industry made most of the public sector resulted in the presumption that there was

no need to look at the fundamental financial strength of this bank. Revamping this

structure of the banking industry was of extreme importance, as the health of the

financial sector in particular and the economy was a whole would be reflected by

its performance.

The need for restructuring the banking industry was felt greater with

the initiation of the real sector reform process in 1992. the reforms have enhanced


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the opportunities and challenges for the real sector making them operate in a

borderless global market place. The route causes for the lackluster performance of

banks, formed the elements of the banking sector reforms. Some of the factors that

led to the dismal performance of banks were.

Regulated interest rate structure.

Lack of focus on profitability.

Lack of transparency in the banks balance sheet.

Lack of competition.

Excessive regulation on organization structure and managerial resource.

Excessive support from government.

Against this background, the financial sector reforms were initiated to bring

about a paradigm shift in the banking industry, by addressing the factors for its

dismal performance.

In this context, the recommendations made by a high level committee

on financial sector, chaired by M. Narasimham, laid the foundation for the bankingsector reforms. The Narasimham Committee suggested that there should be

functional autonomy, flexibility in operations, dilution of banking strangulations,

reduction in reserve requirements and adequate financial infrastructure in terms of

supervision, audit and technology..

Private Sector Banks

Private banking in India was practiced since the begining of banking

system in India. The first private bank in India to be set up in Private Sector Banks


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in India was Indus Ind Bank. It is one of the fPastest growing Bank Private Sector

Banks in India. IDBI ranks the tenth largest development bank in the world.

The first Private Bank in India to receive an in principle approval from the Reserve

Bank of India was Housing Development Finance Corporation Limited, to set up a

bank in the private sector banks in India as part of the RBI's liberalization of the

Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank

Limited with registered office in Mumbai and commenced operations as Scheduled

Commercial Bank in January 1995.

ING Vaysya, yet another Private Bank of India was incorporated inthe year 1930. Bangalore has a pride of place for having the first branch inception

in the year 1934.

Subsequently 9 new commercial banks have been granted

license to start banking operations. The new private sector banks have

been very aggressive in business expansion and is also reporting higher

profile levels taking the advantage of technology and skilled manpower.

Current scenario

Currently (2007), overall, banking in India is considered as fairly

mature in terms of supply, product range and reach-even though reach in rural

Private Sector

Banks

Old Pvt. Sector

Banks (25)

New Pvt. Sector

Banks (9)
http://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/2007


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India still remains a challenge for the private sector and foreign banks. In March

2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in

Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an

investor has been allowed to hold more than 5% in a private sector bank since the

RBI announced norms in 2005 that any stake exceeding 5% in the private sector

banks would need to be vetted by them. Currently, India has 88 scheduled

commercial banks (SCBs) - 28 public sector banks), 29 private banks and 31

foreign banks.

Organizational Structure of Banks in India:

In India banks are classified in various categories according to dif rent

criteria. The following charts indicate the banking structure:

Broad Classification of Banks in India:

1) The RBI:The RBI is the supreme monetary and banking authority in thecountry and has the responsibility to control the banking system in the

Reserve Bank of India

Commercial Banks Co-operative Banks Development Banks

Nationalized Private Short-term

creditLong-term

credit

Agricultural

Credit

Urban

Credit

EXIM Industrial Agricultural


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country. It keeps the reserves of all scheduled banks and hence is known as

the Reserve Bank.

2) Public Sector Banks: State Bank of India and its Associates (8) Nationalized Banks (19) Regional Rural Banks Sponsored by Public Sector Banks (196)(3) Private Sector Banks:

Old Generation Private Banks (22)

Foreign New Generation Private Banks (8)

Banks in India (40)

(4) Co-operative Sector Banks:

State Co-operative Banks

Central Co-operative Banks

Primary Agricultural Credit Societies

Land Development Banks

State Land Development Banks

(5) Development Banks: Development Banks mostly provide long term

finance for setting up industries. They also provide short-term finance (for export

and import activities)

Industrial Finance Co-operation of India (IFCI)

Industrial Development of India (IDBI)

Industrial Investment Bank of India (IIBI)


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Small Industries Development Bank of India (SIDBI)

National Bank for Agriculture and Rural Development (NABARD)

Export-Import Bank of India

The Role of Reserve Bank of India (RBI)Bankers Bank:

The Reserve Bank of India (RBI) is the central bankof India, and

was established onApril 1,1935in accordance with the provisions of the Reserve

Bank of India Act,1934. Since its inception, it has been headquartered inMumbai.

RBI is governed by a central board (headed by a Governor) appointed

by the Central Government. The current governor of RBI is Dr.Y.Venugopal

Reddy (who succeeded Dr. Bimal Jalan on September 6, 2003). RBI has 22

regional offices across India.

Main Objective:

Monetary Authority

Formulates, implements and monitors the monetary policy.

Objective: maintaining price stability and ensuring adequate flow of credit

to productive sectors.
http://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/April_1http://en.wikipedia.org/wiki/April_1http://en.wikipedia.org/wiki/April_1http://en.wikipedia.org/wiki/1935http://en.wikipedia.org/wiki/1935http://en.wikipedia.org/wiki/1935http://en.wikipedia.org/wiki/1934http://en.wikipedia.org/wiki/1934http://en.wikipedia.org/wiki/1934http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Y_Venugopal_Reddyhttp://en.wikipedia.org/wiki/Y_Venugopal_Reddyhttp://en.wikipedia.org/wiki/Y_Venugopal_Reddyhttp://en.wikipedia.org/wiki/Bimal_Jalanhttp://en.wikipedia.org/wiki/Bimal_Jalanhttp://en.wikipedia.org/wiki/September_6http://en.wikipedia.org/wiki/September_6http://en.wikipedia.org/wiki/2003http://en.wikipedia.org/wiki/2003http://en.wikipedia.org/wiki/September_6http://en.wikipedia.org/wiki/Bimal_Jalanhttp://en.wikipedia.org/wiki/Y_Venugopal_Reddyhttp://en.wikipedia.org/wiki/Y_Venugopal_Reddyhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/1934http://en.wikipedia.org/wiki/1935http://en.wikipedia.org/wiki/April_1http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Central_bank


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Regulator and supervisor of the financial system

Prescribes broad parameters of banking operations within which the

countrys banking and financial system functions.

Objective: maintain public confidence in the system, protect depositors

interest and provide cost-effective banking services to the public

Supervisory Functions:

In addition to its traditional central functions, the Reserve bank hascertain non-monetary functions of the nature of supervision of banks and

promotion of sound banking in India. The supervisory functions of the RBI have

helped a great deal in improving the standard of banking in India to develop on

sound lines and to improve the methods of their operation.

Promotional Functions:

With economic growth assuming a new urgency since Independence,

the range of the Reserve Banks functions have steadily widened. The Bank now

performs a variety of developmental and promotional functions, which, at one

time, were regarded as outside the normal scope of central banking. The Reserve

Bank was asked to promote banking habit, extend banking facilities to rural and

semi-urban areas, and establish and promote new specialized financing agencies.

Co-operative Banks:

The Co-operative bank has a history of almost 100 years. The Co-

operative banks are an important constituent of the Indian Financial System,


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judging by the role assigned to them, the expectations they are supposed to fulfill,

their number, and the number of offices they operate. The co-operative movement

originated in the West, but the importance that such banks have assumed in India is

rarely paralleled anywhere else in the world.

While the co-operative banks in rural areas mainly finance

agricultural based activities including farming, cattle, milk, hatchery, personal

finance etc. along with some small scale industries and self-employment driven

activities, the co-operative banks in urban areas mainly finance various categories

of people for self-employment, industries, small scale units, home finance,

consumer finance, personal finance, etc.

There are two main categories of the co-operative banks.

(a) Short term lending oriented co-operative Bankswithin this category

there are three sub categories of banks viz state co-operative banks, District co-operative banks

and Primary Agricultural co-operative societies.

(b) Long term lending oriented co-operative Banks within the second

category there are land development banks at three levels state level, district level and village

level.


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1.2 Company Profile

1.2.1 DEPOSIT SCHEMES - SB

(1)Saral Savings Scheme

. Basic feature of the account shall be as under:-

1. Such accounts shall remain operative even when these have Zero balance & can be opened in

branch of the bank

"Saral Savings Account" can be opened with the initial deposit of Rs100/- and thereafter the balance may go

Rs 100/- and will continue to be operative with even zero balance, unless the account holder request to clos

account. No charges shall be levied in this regard.

2. Target Customers

a) Landless labour / Artisans in the rural areas/House wives not having regular income.

b) Casual labour / Daily wage earners in construction / Industries etc. earning small amount daily.

c) Students having no sound financial background, having no resources and least chances of the savingopportunities.

3.Introduction of the account.

An account holder qualifying KYC norms whose account is at least six month old with satisfactory operations

introduce the account..

4.Operational Stipulation:-

a) Cheque Book will not be issued to this account holder, however on requisition loose cheque may be issuManager cheque / Demand Draft / MT may be issued on request of the account holder after satisfaction t

transaction is genuine but each instrument not to exceed Rs 3000/-. Usual bank charges to be levied for iss

these instruments.

b) Number of withdrawals permitted --'FIVE' in a month and 'TWENTY' per half year.


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.

(2.) Saving Bank account

+ Such accounts can be opened by Individuals (singly or jointly), Associations, clubs, educational institutio

Minimum Balance in Account

Computerized BranchesI) Where cheque Book is not issued Rs. 500/-

II) Where cheque Book is issued Rs. 1000/-

NonComputerized BranchesI) Where cheque Book is not issued Rs. 250/-

II) Where cheque Book is issued Rs. 500/-

Rural Branches I) Account with or without cheque Book facility Rs.100/-

Maximum balance

+ Any Amount can be deposited.

Rate of Interest / Eligibility for payment of interest

Rate of Interest Payment schedule

3.5% or such rate as prescribed by the RBI from time

to time.

Payable on half yearly rest on Daily product basis from

April 2010


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RECURRING DEPOSIT SCHEME

Who can open an account

+ An individual who is not insolvent or insane, can open an account singly or jointly.

+ A minor can open Saving bank Account and the same can be ope rated by the natural

guardian or by minor himself / herself, if he / she is above the age of 10 years. The account

can also be opened jointly.

+ On attaining majority, the erstwhile minor should confirm the balance in his / her account

and if the account is operated by the natural guardian / guardian, fresh specimen signature

of erstwhile minor duly verified by the natural guardian / guardian would be obtained and

kept on record for all operational purpose.

+ Such accounts can be opened by Individuals (singly or jointly), a firm, company, club,

Association , Institution, Govt. or Semi Govt. Body, Co-operative societies, religious and

charitable institutions etc.

Minimum deposit in the Account - Minimum of Rs. 10/-

Maximum deposit in the Account - Maximum of any amount per month.

Minimum and Maximum tenure

Minimum tenure - Minimum period six months.Maximum tenure - Maximum 10 years.

Rate of Interest

+ As per rate applicable to fixed Deposit for the respective maturity period.

Periodicity of Interest

+ The interest is compounded at quarterly intervals but paid along with principal at the time

of maturity of deposit.


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A) INTEREST RATES ON RUPEE DEPOSITS

REVISED RATES

Effective From 04.08.2010

Maturity UPTO Rs 15 lacAbove Rs 15 lac

to Rs 1 CroreAbove Rs. 1 crore

7 - 14 Days 2.50# 2.50 2.50

15 - 30 Days 2.75 2.75 3.10

31 - 45 Days 3.25 3.25 3.25

46 - 90 Days 4.25 4.25 4.75

91 - 179 Days 5.25 5.25 5.75

180 -269 Days 5.75 5.75 6.10

270 - 364 Days 6.00 6.25 6.50

1 Year-2 Years 7.10/ 7.25* 7.10/ 7.25* 7.10

Above 2 Years -


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NOTE: (i) Senior Citizens shall be given an additional benefit of 0.50% on deposits

of less than Rs. One Crore, over and above the mentioned rates, but ONLY for the

maturities of 180 days & above for fresh as well on renewal of deposits. (Refer

RMD Circular No. 131/09 dated 20.11.2009).

ATM BRANCHES LIST

" Punjab & Sind Bank, a Nationalized Bank with the successful history of over 100 years has

always worked in direction of offering its customers the very best. Our ATM cards are a stepin this direction and enables Anywhere Anytime Banking to you. Presently ATM facility

is available for our customers on following locations and to serve you better it will be ourendeavor to add more and more locations."FAQs for ATM

Br Code Location Address

A0031 KHALSA COLLEGE,AMRITSAR AMRITSAR,143001

A0102 CIVIL LINES, AMRITSAR LAWRENCE ROAD, CIVIL LINES, AMRITSAR 12

A0288 GNDU, AMRITSAR UNIVERSITY,CAMPUS,AMRITSAR,143001

A0695 RANJIT AVENUE,AMRITSAR SCO-33, DISTT. SHOPING CENTRE AMRITSAR

C0689 IFB CHANDIGARH SECTOR 17-B, CHANDIGARH

C0032 SECTOR 17C CHANDIGARH SECTOR 17/C , CHANDIGARH 160017

D0480 M BLOCK,CON.CIR, NEW DELHI M-14 ,NEW DELHI, NEW DELHI-110001

D0612 SIDHARTHA ENCLAVE, NEW DELHI 7 SIDHARATH ENCLAVE NEW DELHI 110040

D0878 PREET VIHAR, DELHI B-136, PREET VIHAR NEW DELHI-110092

D0877 MAYUR VIHAR, DELHI D - 31 ACHARYA NIKETAN,MAYUR VIHAR, NEW DEL
http://www.psbindia.com/ATMfaq.phphttp://www.psbindia.com/ATMfaq.phphttp://www.psbindia.com/ATMfaq.phphttp://www.psbindia.com/ATMfaq.php


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GOLD CARD SCHEME FOR EXPORTERS

Exports play a crucial role in a developing economy like India which attaches considerable

importance to export promotion. With a view to further simplify access of Bank credit to

exporters especially small and medium exporters and make it borrower friendly in terms of

procedure and credit terms. The Gold Card holders would enjoy simpler and more efficientcredit delivery mechanism in recognition of his good track record. The Gold Card Scheme

has been introduced in our Bank, the details of which are as under:

1. The card offered by the bank will be known as "PSB EXPO GOLD CARD SCHEME

Eligibility:

1. All credit worthy exporters dealing with the bank for a minimum period of three years

with good track record.

2. Exporters whose accounts have been classified as 'Standard' continuously for a period of

three years and there are no irregularities/adverse features in the conduct of the accounts

will be considered as having good track record.

Fixation of Credit Limits :

1. Application for credit will be processed faster than other exporters. The time frame fixed

for disposal of applications received for sanction of credit under the scheme is as follows:-

For disposal of fresh applications 25 days

Renewal of limits 15 days

Sanction of adhoc limits 07 days

2. PCFC requirements of the PSB Expo Gold Card holders

PSB ICICI BANK CREDIT CARD

The credit card business is today one of the most dynamic and rapidly evolving businesses

in the retail finance segment. If run judiciously can emerge as one of the most profitable

asset product for any financial institution as also a key retention tool.

Our Bank has been making efforts to provide value added products & Services to our

esteemed clients. It is our quest to provide the very best to our esteemed Customers. The

launch of new Co-branded Credit card with ICICI Bank is a step towards this mission.

About the Card: The "PUNJAB & SIND BANK-ICICI BANK Credit Card" comes in three

variants : Blue, Silver and Gold card. The eligibility criteria in terms of Annual Income ofthe applicant is as follows:


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Eligibility Blue Card Silver Card Gold Card

Salaried Rs.60000/-p.a Rs.60000/- p.a Rs.120000/-p.a

Self Employed Rs.50000/-p.a Rs.50000/- p.a Rs.100000/-p.a

1.3 VISION & MISSION

Corporate VisionWe envision to emerge as a strong vibrant Bank through synchronization of the

human, financial and technological resources.

Corporate MissionTo put in place the effective Risk Management and Internal Control Systems.

To adopt and operationalise high-level technology standards.

To strive to achieve excellence in Customer Service.

To achieve the highest standards of transparency and accountability in the conduct

of banking business.

To adopt professional approach in effectively managing financial as well as non-

financial risks.

To maximize profitability and profits of the Bank with due compliance of prudential

guidelines.


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1.4 OWNERSHIP PATTERN

SHRI PARVEEN KUMAR ANAND

EXECUTIVE DIRECTOR

DIRECTORS

SHRI A. BHATTACHARYA DIRECTOR (Ministry of Finance, Deptt. of Financial Services, New Delhi)

SHRI B. P. KANUNGO (RBI Nominee Director)

SHRI SANDIP GHOSE, ADDITIONAL DIRECTOR (Regional Director, RBI New Delhi)

GENERAL MANAGERS

SARDAR GURCHARAN SINGH REKHI(Chief General Manager) (Posted at H.O.)

SARDAR HARCHARAN SINGH MAKKER (Posted at H.O.)

SARDAR HARCHARN SINGH LAMBA (Posted at H.O.)


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SARDAR PARAMJIT SINGH GHAWRI (Posted at H.O.)

SARDAR JASPAUL SINGH KOCHAR (Posted at H.O.)

SARDAR GURVINDER SINGH BINDRA (Posted at L.H.O. Chandigarh)

SARDAR KULWANT SINGH SUCHDEVA (Posted at H.O.)

SARDAR GURPAL SINGH MALIK (Posted at Z.O. KOLKATTA)

SARDAR HARVINDER PAL SINGH (Posted at Z.O. MUMBAI)

SARDAR MANJIT SINGH (Posted at H.O.)

SHRI DINESH KUMAR GUPTA (CVO - Posted at H.O)

1.5 Competitors information:

ICICI Bank

Punjab National Bank

State Bank of India
http://www.answers.com/topic/icici-bank-limited-adrhttp://www.answers.com/topic/punjab-national-bankhttp://www.answers.com/topic/state-bank-of-indiahttp://www.answers.com/topic/state-bank-of-indiahttp://www.answers.com/topic/state-bank-of-indiahttp://www.answers.com/topic/punjab-national-bankhttp://www.answers.com/topic/icici-bank-limited-adr


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1.6 PRODUCTS AND SERVICES OFFERED BY BANKS

Broad Classification of Products in a bank:

The different products in a bank can be broadly classified into:

Retail Banking.

Trade Finance.

Treasury Operations.

Retail Banking and Trade finance operations are conducted at the branch level while the wholesale

banking operations, which cover treasury operations, are at the hand office or a designated branch.

Retail Banking:

Deposits

Loans, Cash Credit and Overdraft

Negotiating for Loans and advances

Remittances

Book-Keeping (maintaining all accounting records)

Receiving all kinds of bonds valuable for safe keeping

Trade Finance:


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Issuing and confirming of letter of credit.

Drawing, accepting, discounting, buying, selling, collecting of bills of exchange, promissory

notes, drafts, bill of lading and other securities.

Treasury Operations:

Buying and selling of bullion. Foreign exchange

Acquiring, holding, underwriting and dealing in shares, debentures, etc.

Purchasing and selling of bonds and securities on behalf of constituents.

The banks can also act as an agent of the Government or local authority. They insure,

guarantee, underwrite, participate in managing and carrying out issue of shares, debentures, etc.

Common Banking Products Available:

Some of common available banking products are explained below:

1)Credit Card:Credit Card is post paid or pay later card that draws from a creditline-money made available by the card issuer (bank) and gives one a grace period to pay. If

the amount is not paid full by the end of the period, one is charged interest.

A credit card is nothing but a very small card containing a means of identification, such

as a signature and a small photo. It authorizes the holder to change goods or services to his account, on

which he is billed. The bank receives the bills from the merchants and pays on behalf of the card holder.

2)Debit Cards:Debit Card is a prepaid or pay now card with some stored value. Debit

Cards quickly debit or subtract money from ones savings account,or if one were taking out cash.

Every time a person uses the card, the merchant who in turn can get the money

transferred to his account from the bank of the buyers, by debiting an exact amount of purchase from the

card. To get a debit card along with a Personal Identification Number (PIN).

.3)Automatic Teller Machine: The introduction of ATMs has given the customers the

facility of round the clock banking. The ATMs are used by banks for making the customers dealing


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easier. ATM card is a device that allows customer who has an ATM card to perform routine banking

transaction at any time without interacting with human teller.

ATMs are currently becoming popular in India that enables the customer to withdraw

their money 24 hours a day and 365 days. The advantages of ATMs are many. It increases existingbusiness and generates new business. It allows the customers.

To transfer money to and from accounts.

To view account information.

To order cash.

To receive cash.

Advantages of ATMs:

To the Customers

ATMs provide 24 hrs., 7 days and 365 days a year service.

Service is quick and efficient

Privacy in transaction

Wider flexibility in place and time of withdrawals.

4) E-Cheaques: The e-cheaques consists five primary facts. They are the consumers, the

merchant, consumers bank the merchants bank and the e-mint and the clearing process. Electronic

version of cheaques are issued, received and processed. A typical electronic cheque transaction takes

place in the following manner:

The customer accesses the merchant server and the merchant server presents its goods to the

customer.

The consumer selects the goods and purchases them by sending an e-cheque to the merchant.

The merchant validates the e-cheque with its bank for payment authorisation.

The consumers bank updates the consumers account with the withdrawal information.


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The e-chequing is a great boon to big corporate as well as small retailers. Most major

banks accept e-cheques. Thus this system offers secure means of collecting payments, transferring value

and managing cash flows.

5) Electronic Funds Transfer (EFT): Many modern banks have computerisedtheir cheque handling process with computer networks and other electronic equipments. These banks are

dispensing with the use of paper cheques. The system called electronic fund transfer (EFT) automatically

transfers money from one account to another. In big companies pay is not disbursed by issued cheques or

issuing cash. The payment office directs the computer to credit an employees account with the persons

pay.

6) Telebanking: Telebanking refers to banking on phone services.. a customer can accessinformation about his/her account through a telephone call and by giving the coded Personal

Identification Number (PIN) to the bank. Telebanking is extensively user friendly and effective in nature.

To get a particular work done through the bank, the users may leave his instructions in the form

of message with bank.

Facility to stop payment on request. One can easily know about the cheque status.

Information on the current interest rates.

Information with regard to foreign exchange rates.

Request for a DD or pay order.

D-Mat Account related services.

And other similar services.

7) Mobile Banking:A new revolution in the realm of e-banking is the emergence of mobilebanking. On-line banking is now moving to the mobile world, giving everybody with a mobile phone

access to real-time banking services, regardless of their location. But there is much more to mobile

banking from just on-lie banking. It provides a new way to pick up information and interact with the

banks to carry out the relevant banking business. The potential of mobile banking is limitless and is

expected to be a big success. Booking and paying for travel and even tickets is also expected to be a

growth area.


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8) Internet Banking: Internet banking involves use of internet for delivery of bankingproducts and services. With internet banking is now no longer confirmed to the branches where one has to

approach the branch in person, to withdraw cash or deposits a cheque or request a statement of accounts.

In internet banking, any inquiry or transaction is processed online without any reference to the branch

(anywhere banking) at any time.

The Internet Banking now is more of a normal rather than an exception due to the fact

that it is the cheapest way of providing banking services. As indicated by McKinsey Quarterly research,

presently traditional banking costs the banks, more than a dollar per person, ATM banking costs 27 cents

and internet banking costs below 4 cents approximately. ICICI bank was the first one to offer Internet

Banking in India.

Benefits of Internet Banking:

Reduce the transaction costs of offering several banking services and diminishes the need for longer

numbers of expensive brick and mortar branches and staff.

Increase convenience for customers, since they can conduct many banking transaction 24 hours a

day.

Increase customer loyalty.

Improve customer access.

Attract new customers.

Easy online application for all accounts, including personal loans and mortgages

Financial Transaction on the Internet:

Electronic Cash: Companies are developing electronic replicas of all existing payment system:

cash, cheque, credit cards and coins.

Automatic Payments: Utility companies, loans payments, and other businesses use on automatic

payment system with bills paid through direct withdrawal from a bank account.


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Direct Deposits:Earnings (or Government payments) automatically deposited into bank accounts,

saving time, effort and money.

Stored Value Cards: Prepaid cards for telephone service, transit fares, highway tolls, laundry

service, library fees and school lunches.

Point of Sale transactions: Acceptance of ATM/Cheque at retail stores and restaurants for

payment of goods and services. This system has made functioning of the stock Market very smooth and

efficient.

Cyber Banking:It refers to banking through online services. Banks with web site Cyber branches

allowed customers to check balances, pay bills, transfer funds, and apply for loans on the Internet.

9) Demat: Demat is short for de-materialisation of shares. In short, Demat is a processwhere at the customers request the physical stock is converted into electronic entries in the

depository system.

In January 1998 SEBI (Securities and Exchange Board of India) initiated

DEMAT ACCOUNTANCY System to regulate and to improve stock investing. As on date, to

trade on shares it has become compulsory to have a share demat account and all trades take place

through demat.

How to Operate DEMAT ACCOUNT?

One needs to open a Demat Account with any of the branches of the bank. After opening

an account with any bank, by filling the demat request form one can handover the securities. The rest will

be taken care by the bank and the customer will receive credit of shares as soon as it is confirmed by the

Company/Register and Transfer Agent. There is no physical movement of share certification any more.

Any buying or selling of shares is done via electronic transfers.

1) If the investor wants to sell his shares, he has to place an order with his broker and give a

Delivery Instruction to his DP (Depository Participant). The DP will debit hi s account with the

number of shares sold by him.


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2) If one wants to buy shares, he has to inform his broker about his Depository Account Number so

that the shares bought by him are credited in to his account.

3) Payment for the electronic shares bought or sold is to be made in the same way as in the case of

physical securities.

IV. BANKING SERVICES

Banking covers so many services that it is difficult to define it. However, these basic

services have always been recognized as the hallmark of the genuine banker. These are

The receipt of the customers deposits

The collection of his cheques drawn on other banks

The payment of the customers cheques drawn on himself

There are other various types of banking services like:

1) AdvancesOverdraft, Cash Credit, etc.

2) DepositsSaving Account, Current Account, etc.

3) Financial ServicesBill discounting etc.

4) Foreign ServicesProviding foreign currency, travelers cheques, etc.

5)

Money TransmissionFunds transfer etc.6) SavingsFixed deposits, etc.

7) Services of place or timeATM Services.

8) StatusDebit Cards, Credit Cards, etc.

Customer Services in Commercial Banks:

Customer service is the service provided in support of a banks core products. Customer

service often includes answering questions; handling complaints. Customer service can occur on site (as

when an onstage employee helps a customer or answers a question) or it can occur over the phone or the

Internet. Quality customer service is essential to building cordial customer relationship.


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Banking being a service industry, a lot depends on efficient and prompt customer service.

Customer service is the most important duty of the banking operations. Prompt and efficient service with

smile will develop good public relations reduce complaints and increase business.

Why is Customer Service Important?

Changing customer expectations: Today the customer is more demanding and

more sophisticated than he or she was thirty years ago.

The increased importance of customer service:With changing customer

expectations, competitors are seeing customer service as a competitive weapon with which they

differentiate their products and services.

The need for a relationship strategy: To ensure that a customer service

strategy that will create a value preposition for customers should be formulated implemented and

controlled. It is necessary to give it a central role and not one that is subsumed in the various

elements of the marketing mix.

The customer is the kingpim in growth organizations like commercial banks. Only those

institutions which work according to his dictates will flourish. Quality, Consistency and Durability at low

price are the final expectations of a customer. Quality will have to be unambiguous, of world class

quality. Quality cannot be of minimum acceptable standards. Customer responsiveness must be quick and

also competent. Speed, performance and cost will be the new values mantra for success.

The ten key areas of customers services to be attended timely and regularly are:

i. Submission of statement of A/Cs to customers

ii. Updating of savings pass books.

iii. Teller system efficiency.

iv. Cleanliness and Upkeep of premises.

v. Intermediate Credit for institution cheques/land bills.

vi. Advance intimation to customers for rewards of Term Deposits Receipts on maturity.

vii. Advance for Debit/credit to accounts.

viii. Punctuality of staff.

ix. Handling of complaint register.


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x. Maintain a complaint register.

Customers dissatisfaction in the banking industry is neither recent nor unknown. This is

mainly due to delays in handling transactions across the counter in collections, update of passbooks

supply of statements of accounts, etc.

Failure to provide prompt and efficient customer service is likely to lead to reduction in

the number of customers and they may have to face closure. To event such situation the following

improvements in the customer services may be carried out:

1) Personal relations of the bank employee with customers will improve customer satisfaction. 1

service with smile should be the motto of every bank employee.

2) Rapid customer services should be provided through automation of work and simplification of

procedures.

3) ATMs may be introduced in all the branches of the banks, based upon the volume of

transactions. This shall facilitate non-stop banking.

4) Credit Cards Services, Debit Card Services, which should be provided to the customers, must a

link service with all the banks and branches if possible to facilitate the customer and the business

organizations.

5) E-mail service made freely available at all banking centers.

6) Foreign Exchange transactions are to be extended to all the branches to facilitate trade and

industries.

7) All the customers are not homogenous in their needs. Hence need based schemes may be

introduced.

8) Totally deregulated interest rate structure should be there.

9) The banking staff must be trained to understand the customers psychology, so they may provide

customer service in a qualified manner.

10) Educating the customers will increases better utilisation of banking services.

V. BANK MARKETING:

The banking business is essentially other peoples money and bankers brain. The

secret of its success lies in satisfying customer needs for which the banks have to rediscover the

marketing cmocept.


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It is right to mention that bank marketing is a managerial process by which

services are matched with markets. The matching of services with market is meant formulation

of overall marketing strategies which suit the taste, temperament, needs and requitements of

customers.

In view of the above, marketing of banking services is concerned with product,

promotion, pricing, and place. In addition, it is also concerned with people, process and physical

appearance.

Objectives of Bank Marketing:

Profitability

Providing high return on investment

Achieving certain market share/growth

Development of an image

Developing new products to meet emerging customer requirements.

Increase in deposits and loans

Directing customers to certain products

Increasing awareness

Increasing customer base through greater customer satisfaction.

VI.ROLE OF INFORMATION TECHNOLOGY (IT) INTHE BANKING SECTOR

Banking environment has become highly competitive today. To be able to survive

and grow in the changing market environment banks are going for the latest technologies, which


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is being perceived as an enabling resource that can help in developing learner and more flexible

structure that can respond quickly to the dynamics of a fast changing market scenario. It is also

viewed as an instrument of cost reduction and effective communication people and institutions

associated with the banking business.

Information Technology enables sophisticated product development, better market

infrastructure, implementation of reliable techniques for control of risks and helps the financial

intermediaries to reach geographically distant and diversified markets. Internet has significantly

influenced delivery channels of the banks. Internet has emerged as an important medium for

delivery of banking products and services.

The customers can view the accounts; get account statements, transfer funds and

purchase drafts by just punching on few keys. The smart cards i.e., cards with micro processor

chip have added new dimension to the scenario.

IT is increasingly moving from a back office function to a prime assistant in increasing

the value of a bank over time. IT does so by maximizing banks of pro-active measures such as

strengthening and standardising banks infrastructure in respect of security, communication and

networking, achieving inter branch connectivity, moving towards Real Time gross settlement

(RTGS) environment the forecasting of liquidity by building real time databases, use ofMagnetic Ink Character Recognition and Imaging technology for cheque clearing to name a few.

Indian banks are going for the retail banking in a big way

E-Banking:E-banking made its debut in UK and USA 1920s. It becomes prominently

popular during 1960, through electronic funds transfer and credit cards. The concept of web-

based baking came into existence in Eutope and USA in the beginning of 1980.

In India e-banking is of recent origin. The traditional model for growth has been through branch

banking. Only in the early 1990s has there been a start in the non-branch banking services. The

new pribate sector banks and the foreign banks are handicapped by the lack of a strong branch

network in comparison with the public sector banks.

Credit CardsDebit Cards


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ATM

E-Cheques

EFT (Electronic Funds Transfer)

D-MAT Accounts

Mobile Banking

Telephone Banking

Internet Banking

EDI (Electronic Data Interchange)

Benefits of E-banking:

To the Customer: Anywhere Banking no matter wherever the customer is in the world. Balance

enquiry, request for services, issuing instructions etc., from anywhere in the world

is possible.

Anytime BankingManaging funds in real time and most importantly, 24 hours a

day, 7days a week.

Convenience acts as a tremendous psychological benefit all the time.

Brings down Cost of Banking to the customer over a period a period of time.

Cash withdrawal from any branch / ATM

On-line purchase of goods and services including online payment for the same.

To the Bank:

Innovative, scheme, addresses competition and present the bank as technology

driven in the banking sector market

Reduces customer visits to the branch and thereby human intervention

Inter-branch reconciliation is immediate thereby reducing chances of fraud and

misappropriation

On-line banking is an effective medium of promotion of various schemes of the

bank, a marketing tool indeed.

Integrated customer data paves way for individualised and customisedservices.


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Impact of IT on the Service Quality:

The most visible impact of technology is reflected in the way the banks respond

strategically for making its effective use for efficient service delivery. This impact on service

quality can be summed up as below:

With automation, service no longer remains a marketing edge with the large banks only.

Small and relatively new banks with limited network of branches become better placed to

compete with the established banks, by integrating IT in their operations.

The technology on one hand serves as a powerful tool for customer servicing, on the

other hand, it itself results in depersonalising of the banking services. This has an adverse

effect on relationship banking. A decade of computerization can probably neversubstitute a simple or a warm handshake.

Impact of IT on Banking System:

The banking system is slowly shifting from the Traditional Banking towards

relationship banking. Traditionally the relationship between the bank and its customers has been

on a one-to-one level via the branch network. This was put into operation with clearing and

decision making responsibilities concentrated at the individual branch level. The head office had

responsibility for the overall clearing network, the size of the branch network and the training of

staff in the branch network. The bank monitored the organisations performance and set the

decision making parameters, but the information available to both branch staff and their

customers was limited to one geographical location.

Traditional Banking Sector


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The modern bank cannot rely on its branch network alone. Customers are now

demanding new, more convenient, delivery systems, and services such as Internet banking have a

dual role to the customer. They provide traditional banking services, but additionally offer much

greater access to information on their account status and on the banks many other services. To

do this banks have to create account information layers, which can be accessed both by the bank

staff as well as by th customers themselves.

The use of interactive electronic links via the Internet could go a ling way in

providing the customers with greater level of information about both their own financial situation

and about the services offered by the bank.

The New Relationship Oriented Bank

CUSTOMER CUSTOMER CUSTOMER

BANK BRANCH BANK BRANCH BANK BRANCH

CLEARING DECISION CLEARING DECISION CLEARING DECISION

CENTRAL CLEARING HEAD OFFICE


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Impact of IT on Privacy and Confidentiality of Data:

Data being stored in the computers, is now being displayed when required on

through internet banking mobile banking, ATMs etc. all this has given rise to the issues of

privacy and confidentially of data are:

The data processing capabilities of the computer, particularly the rapid throughput,

integration, and retrieval capabilities, give rise to doubts in the minds of individuals as to

whether the privacy of the individuals is being eroded.

Customers feel threatened about the inadequacy of privacy being maintained by the banks

with regard to their transactions and link at computerised systems with suspicion.

Aside from any constitutional aspect, many nations deem privacy to be a subject

of human right and consider it to be the responsibility of those who concerned with computer

data processing for ensuring that the computer use does not revolve to the stage where different

data about people can be collected, integrated and retrieved quickly. Another important

responsibility is to ensure the data is used only for the purpose intended.

CUSTOMER

TELEPHONE, BRANCH, ELECTRONIC BANKING, etc

SHARED INFORMATION

CLEARING SYSTEM HEAD OFFICE RISK MONITOIRING


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VII. RECENT TRENDS IN BANKING

Today, we are having a fairly well developed banking system with different

classes of banks public sector banks, foreign banks, private sector banks both old and new

generation, regional rural banks and co-operative banks with the Reserve Bank of India as the

fountain Head of the system.

During the last 39 years since 1969, tremendous changes have taken place in the banking

industry. The banks have shed their traditional functions and have been innovating, improving

and coming out with new types of the services to cater to the emerging needs of their customers.

The major challenges faced by banks today are as to how to cope with competitive forces

and strengthen their balance sheet. Today, banks are groaning with burden of NPAs. It is rightly

felt that these contaminated debts, if not recovered, will eat into the very vitals of the banks.

Another major anxiety before the banking industry is the high transaction cost of carrying Non

Performing Assets in their books. The resolution of the NPA problem requires greater

accountability on the part of the corporate, greater disclosure in the case of defaults, an efficient

credit information sharing system and an appropriate legal framework pertaining to the banking

system so that court procedures can be streamlined and actual recoveries made within an

acceptable time frame. The banking industry cannot afford to sustain itself with such high levels

of NPAs thus, lend, but lent for a purpose and with a purpose ought to be the slogan for

salvation. homes and operating through internet. This would be the case of banking reaching the

customers.

In the days to come, banks are expected to play a very useful role in the economic

development and the emerging market will provide ample business opportunities to harness.

Human Resources Management is assuming to be of greater importance. As banking in India

will become more and more knowledge supported, human capital will emerge as the finest assets

of the banking system. Ultimately banking is people and not just figures.


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VIII. STRAINS AND CHALLNGESLiberalisation process has increasingly exposed Indian Industry to international

competition and banking being a service industry is also not an exception. Banking Sector in

India too faces same strains and challenges at local, national and international level.

Indian Banks, functionally diverse and geographically widespread, have played a

crucial role in the socio-economic progress of the country after independence. However, the

growth led to strains in the operational efficiency of banks and the accumulation of non-

performing assets (NPAs) in their loan portfolios.

Intense Competition: The RBI and Government of India kept banking industry open for the

participants of private sector banks and foreign banks. The foreign banks were also permitted to

set up shop on India either as branches or as subsidiaries. Due to this lowered entry barriers

many new players have entered the market such as private banks, foreign banks, non-banking

finance companies, etc. The foreign banks and new private sector banks have spearheaded the hi-

tech revolution.

Technological Up gradation: Already electronic transfers, clearings, settlements have reduced

translation times. To face competition it is necessary for banks to absorb the technology andupgrade their services.

However use of High-Tech sophisticated technology leaves the predominantly rural, poor

and even illiterate mans in the lurch to which the level of automation and efficiency of

services are immaterial.

Privacy and Safety: Among the most important aspects, of savings, i.e., safety liquidity

and profitability, safety has to be accorded top most priority. The safety aspect assumes

more significance in the emerging scenario as the economic loss caused internationally

by these types of crimes might risk area and any lacunae is safety would result in erosion

of confidence and the same might possibly paralyse the entire network. The areas among

other things, which might endanger security in e-banking can be:


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Changes in input data such as changing the amount in ledges, increasing the limits

in accounts or face value of cheaques. Though these trends could be detected

consequently, prevention is a major problem with these types of crimes.

Use of stolen or falsified cards in ATM machines.

Human Resources Management: In the recent past the human resource Policies in

banks were mainly guided by the comcept of permanent employment and its necessary

concomitants of creating career paths, terminal benfits, etc. for the employees. In todays

fast-changing world of employee mobility both horizontally and vertically and value

systems, the public sector banks need to hire the right talent at market related

compensation and to shed surplus manpower/staff. Thus many banks are going for URS

schemes to reduce the burden of excessive staff. Schemes like VRS are going to changethe nature of workforce with many senior and experienced persons opting for it.

The key elements that shall provide a competitive edge to banking sector will not be

physical assets but knowledge assets and information. Therefore, banks must understand

how to retain knowledge based employees and prevent them to migrating to some other

organisation. Banks must believe in people, customer orientation, and continuous

improvement of excellence. Therefore it becomes necessary for banks to encourage all

employees to take risks and work towards continuous improvements and breakthroughs.

Successful banks overcoming the challenges will be those that harness technology

in a customer friendly yet cost effective way. This requires enormous internal and

external management and the crux of the solution lies in blending human resources with

information technology.


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IX. CASE STUDY

CO-OPERATIVE BANK AND ITS SERVICES

SARASWAT CO-OPERATIVE BANK LIMITED

The Bank has a very humble but a very inspiring beginning. On 14th September

1918, "The Saraswat Co-operative Banking Society" was founded. Mr. J.K. Parulkar became its

first Chairman, Mr. N.B. Thakur, the first Vice-Chairman, Mr. P.N. Warde, the first Secretary

and Mr. Shivram Gopal Rajadhyaksha, the first Treasurer. These were the people with deep and

abiding ideals, faith, vision, optimism and entrepreneurial skills. These dedicated men in charge

of the Society had a commendable sense of service and duty imbibed in them. Even today, our

honourable founders inspire a sense of awe and respect in the Bank and amongst the

shareholders.

The Society was initially set up to help families in distress. Its objective was to

provide temporary accommodation to its members in eventualities such as weddings of

dependent members of the family, repayment of debt and expenses of medical treatment etc. The

Society was converted into a full-fledged Urban Co-operative Bank in the year 1933.

The Bank has the unique distinction of being a witness to History. The Bank,

which was originally founded in 1918, i.e. close on the heels of the Russian Revolution, also

witnessed as a Society and as Bank-the First World War, the Second World War, India's freedom

Movement and the glorious chapter of post-independence India. During this cataclysmic

cavalcade of history, the Bank as a financial institution and its members could not of course

remain unaffected by the economic consequences of the major events. The two wars in particular

brought in their wake, paucities of all kinds and realities and stand by its members in distress as a

solid bulwark of strength.


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The Founder Members and the later-day management's of the Bank continued to

demonstrate their unwavering faith in the destiny of the common man and the co-operative

movement and they encouraged the shareholder to save despite all odds.

MISSION STATEMENT:

"To emerge as one of the premier and most preferred banks in the country by

adopting highest standards of professionalism and excellence in all the areas of working.

MILESTONES: :

Thanks to these sustained and assiduous efforts over 25 years after its inception,

the Bank had gained Strong foundation in terms of its membership, resources, assets and profits.

By 1942, the Bank was fulfilling all the banking needs of its customers.

During the late fifties, the Bank grew from strength to strength. The Bank had

established five branches within the city of Mumbai and one each at Pune and Belgaum. In its

50th year, the Bank chose a bee motif to symbolise the Bank's emblem - a fitting and appropriate

characteristics of a Bank that believed in hard work, a search for all that is good, a team spirit to

achieve its objectives and a selfless service to its members and customers. The Bank has grown

in stature, progressed in its social and economic objectives and produced an image of what an

ideal bank should be. Resultantly, in the year 1977-78, the Bank's gross income crossed the

Rs.3.00 crore mark for the first time.

Last two decades the bank has witnessed a steady growth in the business. The

bank has a network of 86 fully computerised branches covering five states viz. Maharashtra,

Gujarat, Madhya Pradesh, Karnataka and Goa. The Bank is providing 24- hour service through

ATM at 41 locations.


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In 1988 the bank was conferred with "Scheduled" status by Reserve Bank of

India.The bank is the first co-operative bank to provide Merchant Banking services. The bank

got a permanent license to deal in foreign exchange in 1978. Presently the Bank is having

correspondent relationship in 45 countries covering 9 currencies with over 125 banks

SERVICES PROVIDED

Saraswat Co-operative Bank being the No.1 co-operative bank in Asia, our efforts

are always directed towards developing and offering competitive and innovative products and

services. In the wholesale banking business, the Saraswat Co-operative Bank Ltd. provides a

wide range of products from a traditional term loans to short term products like Bills discounting

under Letter of Credit etc.

The Bank also offers a bouquet of Retail Loan Products such as Vastu Siddhi Home Loan,

Saraswati Education Loan, Car Loan etc. and wide array of Deposit schemes with customer

friendly features and attractive Rate of Interest. With a view of fulfilling all the needs of the

customers under one roof Bank has entered into tie-ups with various premium institutions,

through which we are offering third party products like Life and non-Life Insurance, Mutual

Funds and Demat Services.

Following are the Services Provided by the Saraswat Bank

PERSONAL

Deposits Scheme

Personal Loans

1. Deposits SchemeSaraswat Bank provides information of it's various deposit schemes customers can avail of

with the bank


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CUBS Deposit

Current Deposit

Elite Savings

Janhit Account (No frills account)

Savings Deposit

Co-operative Societies

Savings for Kids (CUBS)

Features:

a) You should be a minor/student (upto the age of 21 years) to become 'CUBS' account holder.b) Initial deposit of Cubs account is Rs 50/- and subsequent deposits in multiples of Rs 10/- no

periodic compulsion for subsequent Deposit.

c) Starting with a small amount of Rs. 50/-, a CUB Account holder has to save Rs. 500 /- over aperiod of one year.

d) Facility to deposit cash in school premises on predetermined days.e) After completion of 14 years of age minor/student can operate the account

Cheque book facility not available.

Benefits

"Free Gift" for all account holders.

Earn Interest @ 3.5 p.a. every quarter possess specially designed passbook.

Minimum Balance:

Account opening - Rs. 50/- with further deposit of Rs. 10/- Rs. 500/- after one year of

opening account.
http://www.saraswatbank.in/view_section.jsp?id=0,4,6,20http://www.saraswatbank.in/view_section.jsp?id=0,4,6,20http://www.saraswatbank.in/view_section.jsp?id=0,4,6,21http://www.saraswatbank.in/view_section.jsp?id=0,4,6,21http://www.saraswatbank.in/view_section.jsp?lang=0&id=0,4,6,104http://www.saraswatbank.in/view_section.jsp?lang=0&id=0,4,6,104http://www.saraswatbank.in/view_section.jsp?id=0,4,6,25http://www.saraswatbank.in/view_section.jsp?id=0,4,6,25http://www.saraswatbank.in/view_section.jsp?id=0,4,6,25http://www.saraswatbank.in/view_section.jsp?lang=0&id=0,4,6,104http://www.saraswatbank.in/view_section.jsp?id=0,4,6,21http://www.saraswatbank.in/view_section.jsp?id=0,4,6,20


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Current Deposits

Features:

Minimum Average Balance.

Eligibility - Individual, Businessmen, Organizations.

Minimum Balance of Rs 5000/- .

Free ATM cards.

Non-Maintenance of minimum average quarterly balance require to pay service

charges of Rs. 200/- per month.

If account is closed within 6 months Rs. 30/- plus Rs. 2/- per unused cheaques.

Elite Savings

Eligibility: Individuals, Minor by guardian, Organisations, Co-operative Societies.

Minimum Balance: Rs. 5000/- (Average Quarterly Balance)

Rate of Interest: 3.50% p.a.

Penalty for Non-maintenance of minimum balance: Minimum quarterly average

balance: Below Rs. 4000/- to Rs. 4999/- - Rs. 50 per quarter.Below Rs. 4000/- - Rs. 100 perquarter.

Special features / facilities:

Free Personal Accident Insurance Cover of Rs. 2.00 Lakhs for one year.

Free Utility Bills Payment facility.

Free Issue of Demand Draft / Pay Order (one occasion per month without ceiling on

maximum amount)

Free ATM Card.

Janhit Account (No Frills Account)


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Eligibility:

1) Persons whose balances do not exceed Rs 50,000/- in all the accounts taken together.2) Total credits to the Janhit account should not exceed Rs 1 lakh in a year.3) Once a customer opens a Janhit Account with the Bank, he/she will have to close all

other transaction accounts with any other bank within a period of 60 days from the date

of opening the Janhit Account with our bank.

4) The initial deposit amount required to open account would be Rs.250/- Savings Deposits

Minimum Average Balance

Rs. 1000 /- with or without Cheque Book

Free ATM card

Interest

3.5% p.a. with quarterly rest

Penalty / Service Charges

Non-Maintenance of minimum average quarterly balance of Rs 1000/- require to pay Rs

50/- per month

If account is closed within 6 monthsWithout cheque book - Rs. 10 /-

With cheque book - Rs. 15 /- plus Rs. 2 per unused cheque

Co-operative Societies

Eligibility

Co-operative societies

Minimum Amount

Minimum quarterly average balance of Rs. 15000/- in Saving/Current Account

Minimum Rs. 3.00 lacs in Term Deposit

Rate Of Interest

0.5% extra interest as compared to General Public for Term Deposit.


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For Saving Account 3.5%

For Current AccountNil

Special Features/Facilities

Free Affinity Card

Free Cheque Collection Service.

Free delivery of Statement of Account (once in a month)

Free Utility Bill Payment (Easy Pay Scheme)

Free transfer of Funds from the account of member of the Society to Societys account

for monthly maintenance

Free issue of D.D./P.O. upto Rs. 25000/- each.

IX. Personal LoansSaraswat Co-operative Bankoffers various loans to its customers, one can opt for any of the

below listed loans for their assortment of needs.

Medical Loan

Purpose

Term Loan for acquiring Nucleus Cochlear Implant

Banking Relation

Previous banking relations are not compulsory.

Applicant should be residing in the city where the branch is located.

Eligibility

Hearing Impaired individual OR their Parents
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Limit of Loan

Rs. 10.00 Lakhs

100% of the cost of equipment and hospitalisation and allied charges 70% of the Market value

based on valuation by approved valuer of the commercial .

EMI

Fixed Monthly Installments: ( For Rs 1.00 Lakh )

Year 1 2 3 4 5

Amount 8839 4661 3274 2585 2175

Repayment Period

Maximum 5 Years

Security

Equitable mortgage of residential / commercial premises Pledge of tangible securities viz. NSCs,

KVPs.LIC policies, FDRs, Gold or any other approved securities 2 Guarantors of well placed

means


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Property Loan

Purpose

Acquiring another asset, for any other purpose, but end use should be ensured.

Limit of Loan

Minimum - Rs.2 lakhs

Maximum - Rs. 50 Lakhs

Basis of Advancea) 25 times of net salary in case of salaried person Or

b) 3 times of net cash accruals.(Net of tax and drawing plus depreciation) Or

c) 60% of agreement cost (If the property is less than 3 years old.). In other cases, 60% of value

as per valuation report.

a,b,c Whichever is lower

Eligibility

a) Individual who are salaried employees having minimum net salary of Rs.10000/- p.m. (The

income of the spouse may be added)

b) Professional, Self-Employed and others who are income tax assessee having net annual

taxable income of Rs.150000/- for at least 3 years continuously.

c) Firm/Company, whose net annual taxable income is Rs.150000/- p.a. and firm/company, is in

operation for last 3 years and making cash profit for last 3 years, at the above level.

Rate of Interest

Term loan - 12.50% on Daily Reducing Balance

Cash credit - 13% on Daily Reducing Balance


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Repayment Period

Term Loan - Maximum 5 years

Cash Credit - with reducing limit (in 60 monthly installments) subject to renewal

every year.

Security

Equitable Mortgage of Residential, commercial or industrial property.

Guarantor:

Need not be obtained however in case of firms, companies, guarantee of partners,

directors to be obtained.

Home Loan

Purpose of Loans

Purchase of flat / bungalow

Limits of Loans

Maximum Rs.25.00 lakhs.

Basis of Advance/ Eligibility.

95% of cost of land & construction or cost of flat + registration charges + stamp duty.

100% of cost on case to case basis with 10% collateral security in the form of approved liquid

securities like Term Deposit, Govt. Securities, NSC, KVP, LIC etc.

Option I(Regular Repayment) - 60 times of net monthly salary (avg. for the last three

months)Or 3 times of Net Cash accruals (average for the last 2-3 years net profit after adding

back of depreciation) of applicant, spouse and close blood relative


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Option II (Bullet Repayment) & Option III (Progressive Repayment)- 65 times of net salary

(avg. for the last three months) or 3 times of net cash accruals (average for the last 2-3 years net

profit after adding back of depreciation) of the applicant, spouse, and dependent blood relative, if

applicant opts for Bullet payment mode.

Repayment Period

Maximum 15 years

Rate of Interest

Flexi Fixed : 11.00% p.a. - Varying every 3 years

Floating : 11.50% p.a.

Fixed : 12.50% p.a.

CORPORATE

Customer is not an intervention; he is the very reason for our existence.

The Bank realises this. We provide a wide array of commercial and electronic Banking products

to corporate/ mid corporate/SME. Despite rapid growth in credit portfolio, Banks asset quality

has shown constant improvement. Your Bank has a wide exposure to various industries. We are

providing various facilities from funded to none funded from short term to long term ensuring

that you get finance as per your needs.

Mid Corporate Products

Small & Medium Enterprises (SMEs)

1) Mid Corporate Products.Bank provides variety of credit facilities to its Corporate Clients as under:

Working Capital
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The Bank with a team of technically qualified competent customer driven relationship managers

possessing wide industry experience in various segments, the Bank has taken lot of efforts to

understand customers & empathizing with their needs.

They can offer you working capital finance by way of cash credit or loans suitably structured to

your need and risk profile in consortium or as a lead banker. Our working capital solutions are

based on financial, quantitative & qualitative evaluation of your business through our technically

qualified experts.

Term Loan

The Bank provides term finance/term loans for business expansion, up gradation of existing

facilities etc to ease the pressures on margins of the company .The Bank is providing structured

term loans to meet your short term as well as long term funding requirements. We offer specific

solution so as to match repayment with your cash flows to repay the debt thereby enhancing your

profitability.

2)Small & Medium Enterprises (SMEs)For a business on the growth phase with a wide range of opportunities to explore, timely

availability of credit is essential to scale new heights. At Saraswat Bank we see ourselves as

partners to Clients business enabling you to focus on your business needs.

Working Capital

The Bank with a team of technically qualified competent customer driven relationship managers

possessing wide industry experience in various segments. The Bank has taken lot of efforts tounderstand customers & empathizing with their needs.

The can offer you working capital finance by way of cash credit or loans suitably structured to

your need and risk profile in consortium or as a lead banker. Their working capital solutions are

based on financial, quantitative & qualitative evaluation of your business through our technically

qualified experts.
http://www.saraswatbank.in/view_section.jsp?lang=0&id=0,113,5,119http://www.saraswatbank.in/view_section.jsp?lang=0&id=0,113,5,118http://www.saraswatbank.in/view_section.jsp?lang=0&id=0,113,5,118http://www.saraswatbank.in/view_section.jsp?lang=0&id=0,113,5,119


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Import Finance

Bank is providing import finance to its valuable customers by providing letter of credit facility

for its customers to purchase their raw materials. These are generally provided for 90 to 180

days.

SERVICES

Saraswat Co-operative Bank provides information of various Value added services that the

Bank provides for it's esteemed Customers under this section.

EASY PAY

Here is one more exciting facility the Bank has offered to relieve you, its

esteemed client, from their valuable time standing in a queue for routine utility bill payments.All

they have to do is to walk into any of the branch and register themselves under: Easy Pay

scheme for all their recurring utility bill payments such as Telephone, Electricity Bills, Cellular

Phone Bills, Insurance Premium & many more. Once the customers are registered all their future

bills will be paid automatically through their bank account with bank.Any Customer can

download the form and submit it to nearby branch.

ATM SERVICES

Please do not waste the valuable "Time" for "Money", as the "Time" itself is "Money".

The Saraswat Co-operative Bankissue ATM card to all their clients who open account

with the Bank.a Saraswat Bank ATM cardholder, the account holder enjoy the privilege and convenience

of withdrawing cash at their convenience at time during day and night on all 365 days in a year. They can

draw cash from ATMs of Saraswat Bank as well as over 2461 ATMs of 20 members Banks in "BANCS"

network. For drawing cash from the ATMs of Consortium banks, no charges are levied.


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INSURANCE

It is the Banks earnest endeavor to offer suite of new and competitive financial

products and services. The Bank has for this purpose tied up with various insurance companies.

The details of tie-up and products offered are given below:

[A] LIFE INURANCE.

For Life Insurance products, we have entered into a tie-up with M/s. HDFC Standard Life

Insurance Company Limited. We offer following products:

1) Endowment Plan:

This being a popular savings plan is useful for meeting all long/ short-term financial needs and

also covers the risk of the applicant's life. Tax benefit under Sec 80 C is also available.

2) Childrens Double benefit plan:

It is the most popular plan which helps you save and secure your child's future to meet expenses

for education, marriage etc. It is also known as double benefit plan as on death of life insured the

beneficiary (child) gets the sum assured on death of applicant as well as on maturity of the

policy. Tax benefit under Sec 80 C is also available.

3) Term Assurance plan:

It is purely life risk cover plan. On death of the life insured the nominee gets the policy amount.

Tax benefit under Sec 80 C is available.

4) Regular Personal Pension Plan:

It is plan, which provides annuity at the retirement age. This plan is a with profit pension plan

suitable for everyone to help provide regular financial security to the family. Plan takes care of

retirement age, return on investment, inflation etc. Tax benefit under Sec 80 C available.


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[B] NON-LIFE INURANCE:

For Non-Life Insurance we have a tie-up with M/s. Bajaj Alliance General Insurance Co

Ltd. Under the arrangement we offer following insurance products:

1) Health guard:

This plan provides for reimbursement of Hospitalisation expenses incurred for illness/

diseases or injury sustained. The key features are lowest premium, takes care of pre

and post hospitalisation expenses, ambulance charges, family discount, cashless

facility with network of 600 hospitals across India. Tax benefit under Sec 80 D is

available.

2) Travel Companion:

It is an Overseas Travel Insurance that covers reimbursement of medical expenses at

abroad, along with loss of passport/ baggage during overseas travel.

3) Personal Accident Insurance:It covers risk of death on accident.

4) Vehicle Insurance: It insures your vehicle incase of damage or loss to the

vehicle.


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X. CONCLUSION

The banking scenario has changed drastically. The changes which have taken

place in the last ten years are more than the changes took place in last fifty years because of the

institutionalisation, liberalisation, globalisation and automation in the banking industry.

Indian banking system has several outstanding achievements to its credit, the most

striking of which is its reach. Indian banks are now spread out into the remote corners of our

country. In terms of the number of branches, Indias banking system is one of the largest in the

world. According to the Banker 2004, India has 20 banks within the worlds top 1000 out of

which only 6 are within the top 500 banks.

Today banking sector is marked by high customer expectations and technological

innovations. Technology is playing a crucial role in the day to day functioning of the banks.

These banks that have harnessed and leveraged technology best have a strategic advantage. To

face competition it is necessary for banks to absorb the technology and upgrade their services.

In todays context banks are following the strategy of relationship banking than

mass banking which is need of the hour. The customer services are playing a very significant

role in banking business. In India major events leading to deregulation, liberalisation andprivatisation have unleashed forces of competition, making the banks run for their business, not

only to create the customer, but more difficult to run for their business, not only to create the

customer, but more difficult to retain the customer. Prompt and efficient customer service, thus,

has become very significant. Relationship banking is the new paradigm for survival and success,

embracing a share of customer approach to growth by identifying, protecting and expanding

customer relationship.

XI BIBLIOGRAPHY

Websites Visited

www.google.com

www.answers.com
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CHAPTER-2

REVIEW OF LITERATURE


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REVIEW OF LITERATURE

JOSHI(1980) Punjab and Sind Bank(P&SB) was set up to Householdsavings including funds from the Capital Market into this sector. P&SB

emerged as the largest mortgage Finance institution in the country.

With the main objective to develop significant expertise in retail

mortgage loans to different s market segments His study also revealed

that there was a large corporate client base for bank related facilities

and to supported in the promotion of home ownership. P&SB

residential bank stock and promoted home ownership. The study also

depicted the increase flow of resources for sind bank through the

integration of sind banking financial institutions with the domestic

market. It has developed a strong market reputation, large shareholder

base and a unique consumer franchise and was respected as indias

premier sind banking company in india as well as in the international

markets.

BOLESLAV(1930) examined the evolution of the p&SB in India, as

industry became the main tool of the Federal P&SB policy that

encouraged the new construction of Single-Family homes. His study also

revealed that the incentives provided to home owners-e.g., cheap

mortgage capital and the mortgage interest deduction-may serve the

policy goals only in the short terms. In the long term, the incentiveswere not only ineffective but also harmful. They lead to economic

distortions and dislocations such as the bifurcation of the central cities

and surbubs. The paper also recommended to phase mortgage interest

Deduction.


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WARNOCK(2000) Examined the extent to which markets enabled the

provision of P&SB bank across a wide range of countries. The Study

revealed that was a major purchase requiring long-term financing, and

the factors that were associated with well functioning P&SB systems

were those that enabled the provision of long-term finance. The Study

also found that countries with stronger legal rights for borrowers and

lenders, deeper credit information systems and a more stable

macroeconomic environment have deeper P&SB bank systems. The

Study also examined the another potential factor that the existence ofsizeable government securities markets might enable the development of

emerging markets of P&SB systems.

FRANCIS(1998) The study done by him revealed that while other

countries this mantled their segmented this banking system and linked

to capital markets through deregulated depositories and it was only

india which linked to capital markets through depository ,deregulation

and securitization as

products & services offered by p& sind bank

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