CUSTOMER SATISFACTION

AT

ORIENTAL BANK OF COMMERCE

CO-ORDINATOR SUBMITTED BY

Hema Mirji
CHANDRAKANTA PANIGRAHI
(Co-coordinator MBA (BA) 4th Trimester
(Business Analytics) Roll No: 07

Institute of Management and

Entrepreneurship Development
Pune - 411038
 CERTIFICATE

This is to certify that the project titled ‘Customer satisfaction at

OBC ’ is prepared by Chandrakanta is being Submitted for the partial
fulfillment of the Master’s degree in Business Analytics Programme at IMED,
Bharati vidyapeeth University, Pune. He has successfully completed the
project under my constant guidance and support.

Signature of the Project Guide

(Hema mirji) Chandrakanta panigrahi

MBA 4th trimester.

PREFACE
 Summer training is a very important part of an MBA curriculum.
It provides an optimistic iconography for ‘Future’ existence through which
students are able to see the real industrial environment which gives an
opportunity to relate theory with practice.

I undertook two months training programme at Oriental Bank of

Commerce (Bhadrak) and worked on the project “Customer Satisfaction
at OBC “. This report is the knowledge acquired by me during this period of
training.

FEATURE OF THIS REPORT:

Several features of this report are designed to make it particularly easy for
professionals and students to understand the customer’s perception about
the financial products and services offered by the bank.

STRUCTURE:

An empirical field approach complementing the text is followed

EMPIRICAL APPROACH:

This report presents highly technical subject matter without complex

formulas by using a balance of text and figures. The approximately 20
figures accompanying the text provide a visual and intuitive opportunity for
understanding the material.

HIGHLIGHTED POINTS:

Important points are highlighted at appropriate places to

stress their importance.

APPENDIXES:
The appendixes are intended to provide quick reference material or a
review of materials needed to understand the concepts discussed in this
report.
 ACKNOWLEDGEMENT

A Project usually falls short of its expectations unless guided by the

right person at the right time. This Project would not have completed
without the direct or indirect help and guidance of such luminaries in
Punjab National bank. They provided us with the necessary resources and an
environment conducive for healthy learning and training. They provided us
with the required amount of freedom to exercise our skill under their able
guidance.

At the outset, I would like to take this opportunity to

gratefully acknowledge the very kind and patient guidance and
encouragement I have received from our Project Guide Hema mirji (Co-
odinator) and Mr.Pradeep Kumar Panda (BRANCH MANAGER) throughout
their critical evaluation and suggestion at every stage of the Project, this
report could never have reached its present form.

I would be failing in my duties if I forget to mention the name of Mrs.

Kirti Gupta (Project Guide) for her unconditional support during the course of
the project. I would like to extend my thanks to my college IMED for the
facilities availed to me in terms of library work.

Last but not least I would like to thank all the respondents for giving
their precious time and relevant information and experience, I
required, without which the Project would have been incomplete.
Chandrakanta panigrahi
1.1 INTRODUCTION TO BANKING IN INDIA

The banking section will navigate through all the aspects of the Banking System in India. It will
discuss upon the matters with the birth of the banking concept in the country to new players
adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and
top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three
separate heads with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has been well explained
under three different heads namely:

• History of Banking in India

• Nationalization of Banks in India
• Scheduled Commercial Banks in India
The first deals with the history part since the dawn of banking system in India. Government took
major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks
in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but
not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of
RBI Act 1934 lays down the condition of scheduled commercial banks. The description along
with a list of scheduled commercial banks are given on this page

1.1.1 HISTORY OF BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.
For the past three decades India's banking system has several outstanding achievements to its
credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of
the country. This is one of the main reasons of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends

With the nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or
for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient
bank transferred money from one branch to other in two days. Now it is simple as instant
messaging or dials a pizza. Money has become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today, the
journey of Indian Banking System can be segregated into three distinct phases. They are as
mentioned below:

• Early phase from 1786 to 1969 of Indian Banks

• Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
• New phase of Indian Banking System with the advent of Indian Financial

& Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These
three banks were amalgamated in 1920 and Imperial Bank of India was established which started
as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National
Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of
India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore
were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic failures
between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the
functioning and activities of commercial banks, the Government of India came up with The
Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per
amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive
powers for the supervision of banking in India as the Central Banking Authority.

During those day’s public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal department
was comparatively safer. Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence. In 1955,
it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially
in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI
and to handle banking transactions of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July,
1969, major process of nationalization was carried out. It was the effort of the then Prime
Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were
nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with
seven more banks. This step brought 80% of the banking segment in India under Government
ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions in
the Country:

• 1949: Enactment of Banking Regulation Act.

• 1955: Nationalization of State Bank of India.
• 1959: Nationalization of SBI subsidiaries.
• 1961: Insurance cover extended to deposits.
• 1969: Nationalization of 14 major banks.
• 1971: Creation of credit guarantee corporation.
• 1975: Creation of regional rural banks.
• 1980: Nationalization of seven banks with deposits over 200 crore.
After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.
Banking in the sunshine of Government ownership gave the public implicit faith and immense
confidence about the sustainability of these institutions.

Phase III

this phase has introduced many more products and facilities in the banking sector in its reforms
measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his
name which worked for the liberalisation of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers. Phone banking and net banking is introduced. The entire
system became more convenient and swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from any crisis
triggered by any external macroeconomics shock as other East Asian Countries suffered. This is
all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not
yet fully convertible, and banks and their customers have limited foreign exchange exposure.

1.1.1 SCHEDULED COMMERCIAL BANKS IN INDIA

The commercial banking structure in India consists of:

• Scheduled Commercial Banks in India

• Unscheduled Banks in India
Scheduled Banks in India constitute those banks which have been included in the Second
Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in
this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act.

As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918
branches. The scheduled commercial banks in India comprise of State bank of India and its
associates (8), nationalized banks (19), foreign banks (45), private sector banks (32), co-
operative banks and regional rural banks.

"Scheduled banks in India" means the State Bank of India constituted under the State Bank of
India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary
Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under
section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40
of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank
of India Act, 1934 (2 of 1934), but does not include a co-operative bank".

"Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of
the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".

The following are the Scheduled Banks in India (Public Sector):

• State Bank of India

• State Bank of Bikaner and Jaipur
• State Bank of Hyderabad
• State Bank of Indore
• State Bank of Mysore
• State Bank of Saurashtra
• State Bank of Travancore
• Andhra Bank
• Allahabad Bank
• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Corporation Bank
• Dena Bank
• Indian Overseas Bank
• Indian Bank
• Oriental Bank of Commerce
• Punjab National Bank
• Punjab and Sind Bank
• Syndicate Bank
• Union Bank of India
• United Bank of India
• UCO Bank
• Vijaya Bank

The following are the Scheduled Banks in India (Private Sector):

 • ING Vysya Bank Ltd
• Axis Bank Ltd
• Indusind Bank Ltd
• ICICI Bank Ltd
• South Indian Bank
• HDFC Bank Ltd
• Centurion Bank Ltd
• Bank of Punjab Ltd
• IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India:

• American Express Bank Ltd.

• ANZ Gridlays Bank Plc.
• Bank of America NT & SA
• Bank of Tokyo Ltd.
• Banquc Nationale de Paris
• Barclays Bank Plc
• Citi Bank N.C.
• Deutsche Bank A.G.
• Hongkong and Shanghai Banking Corporation
• Standard Chartered Bank.
• The Chase Manhattan Bank Ltd.
• Dresdner Bank AG.
1.1.1 BANKING SERVICES IN INDIA

With years, banks are also adding services to their customers. The Indian banking industry is
passing through a phase of customers market. The customers have more choices in choosing
their banks. A competition has been established within the banks operating in India.

With stiff competition and advancement of technology, the services provided by banks have
become more easy and convenient. The past days are witness to an hour wait before withdrawing
cash from accounts or a cheque from north of the country being cleared in one month in the
south.

This section of banking deals with the latest discovery in the banking instruments along with the
polished version of their old systems.

BANK ACCOUNT

The most common and first service of the banking sector. There are different types of bank
account in Indian banking sector. The bank accounts are as follows:

• Bank Savings Account - Bank Savings Account can be opened for eligible person /
persons and certain organizations / agencies (as advised by Reserve Bank of India (RBI)
from time to time)

• Bank Current Account - Bank Current Account can be opened by individuals /

partnership firms / Private and Public Limited Companies / HUFs / Specified Associates /
Societies / Trusts, etc.
 • Bank Term Deposits Account - Bank Term Deposits Account can be opened by
individuals / partnership firms / Private and Public Limited Companies / HUFs/ Specified
Associates / Societies / Trusts, etc.

• Bank Account Online - With the advancement of technology, the major banks in the
public and private sector has faciliated their customer to open bank account online. Bank
account online is registered through a PC with an internet connection. The advent of bank
account online has saved both the cost of operation for banks as well as the time taken in
opening an account.

PLASTIC MONEY

Credit cards in India are gaining ground. A number of banks in India are encouraging people to
use credit card. The concept of credit card was used in 1950 with the launch of charge cards in
USA by Diners Club and American Express. Credit card however became more popular with use
of magnetic strip in 1970.

Credit card in India became popular with the introduction of foreign banks in the country.

Credit cards are financial instruments, which can be used more than once to borrow money or
buy products and services on credit. Basically banks, retail stores and other businesses issue
these.

LOANS

Banks in India with the way of development have become easy to apply in loan market. The
following loans are given by almost all the banks in the country:

• Personal Loan
• Car Loan or Auto Loan
• Loan against Shares
• Home Loan
• Education Loan or Student Loan
In Personal Loan, one can get a sanctioned loan amount between Rs 25,000 to 10, 00,000
depending upon the profile of person applying for the loan. SBI, ICICI, HDFC, HSBC are some
of the leading banks which deals in Personal Loan.
Almost all the banks have jumped into the market of car loan which is also sometimes termed as
auto loan. It is one of the fast moving financial products of banks. Car loan / auto loan are
sanctioned to the extent of 85% upon the ex-showroom price of the car with some simple paper
works and a small amount of processing fee.

Loan against shares is very easy to get because liquid guarantee is involved in it.

Home loan is the latest craze in the banking sector with the development of the infrastructure.
Now people are moving to township outside the city. More number of townships is coming up to
meet the demand of 'house for all'. The RBI has also liberalised the interest rates of home loan in
order to match the repayment capability of even middle class people. Almost all banks are
dealing in home loan. Again SBI, ICICI, HDFC, HSBC are leading.

The educational loan, rather to be termed as student loan, is a good banking product for the mass.
Students with certain academic brilliance, studying at recognised colleges/universities in India
and abroad are generally given education loan / student loan so as to meet the expenses on tuition
fee/ maintenance cost/books and other equipment.

MONEY TRANSFER

Beside lending and depositing money, banks also carry money from one corner of the globe to
another. This act of banks is known as transfer of money. This activity is termed as remittance
business. Banks generally issue Demand Drafts, Banker's Cheques, Money Orders or other such
instruments for transferring the money. This is a type of Telegraphic Transfer or Tele Cash
Orders.

It has been only a couple of years that banks have jumped into the money transfer businesses in
India. The international money transfer market grew 9.3% from 2003 to 2004 i.e. from US$213
bn. to US$233 bn. in 2004. Economists say that the market of money transfer will further grow at
a cumulative 12.1% average growth rate through 2009.

1.1 FUTURE OF BANKING IN INDIA

A healthy banking system is essential for any economy striving to achieve good growth and yet
remain stable in an increasingly global business environment. The Indian banking system has
witnessed a series of reforms in the past, like deregulation of interest rates, dilution of
government stake in PSBs, and increased participation of private sector banks. It has also
undergone rapid changes, reflecting a number of underlying developments. This trend has
created new competitive threats as well as new opportunities. This paper aims to foresee major
future banking trends, based on these past and current movements in the market.

Given the competitive market, banking will (and to a great extent already has) become a process
of choice and convenience. The future of banking would be in terms of integration. This is
already becoming a reality with new-age banks such as YES Bank, and others too adopting a
single-PIN. Geography will no longer be an inhibitor. Technology will prove to be the
differentiator in the short-term but the dynamic environment will soon lead to its saturation and
what will ultimately be the key to success will be a better relationship management.

1.1.1 OVERVIEW

If one were to say that the future of banking in India is bright, it would be a gross
understatement. With the growing competition and convergence of services, the customers (you
and I) stand only to benefit more to say the least. At the same time, emergence of a multitude of
complex financial instruments is foreseen in the near future (the trend is visible in the current
scenario too) which is bound to confuse the customer more than ever unless she spends hours
(maybe days) to understand the same. Hence, I see a growing trend towards the importance of
relationship managers. The success (or failure) of any bank would depend not only on tapping
the untapped customer base (from other departments of the same bank, customers of related
similar institutions or those of the competitors) but also on the effectiveness in retaining the
existing base.

India has witness to a sea change in the way banking is done in the past more than two decades.
Since 1991, the Reserve Bank of India (RBI) took steps to reform the Indian banking system at a
measured pace so that growth could be achieved without exposure to any macro-environment
and systemic risks. Some of these initiatives were deregulation of interest rates, dilution of the
government stake in public sector banks (PSBs), guidelines being issued for risk management,
asset classification, and provisioning. Technology has made tremendous impact in banking.
‘Anywhere banking’ and ‘Anytime banking’ have become a reality. The financial sector now
operates in a more competitive environment than before and intermediates relatively large
volume of international financial flows. In the wake of greater financial deregulation and global
financial integration, the biggest challenge before the regulators is of avoiding instability in the
financial system.
1.1.2 RISK MANAGEMENT

The future of banking will undoubtedly rest on risk management dynamics. Only those banks
that have efficient risk management system will survive in the market in the long run. The
effective management of credit risk is a critical component of comprehensive risk management
essential for long-term success of a banking institution.

Although capital serves the purpose of meeting unexpected losses, capital is not a substitute for
inadequate decontrol or risk management systems. Coming years will witness banks striving to
create sound internal control or risk management processes.
With the focus on regulation and risk management in the Basel II framework gaining
prominence, the post-Basel II era will belong to the banks that manage their risks effectively.
The banks with proper risk management systems would not only gain competitive advantage by
way of lower regulatory capital charge, but would also add value to the shareholders and other
stakeholders by properly pricing their services, adequate provisioning and maintaining a robust
financial structure.

‘The future belongs to bigger banks alone, as well as to those which have minimized their risks
considerably.’
2.1 INTRODUCTION

• Oriental Bank of Commerce India was established in the year 1943 on 19th
February in Lahore. After partition, Oriental Bank of Commerce shifted its
Registered Office from Lahore to Amritsar paying every rupee to its departing
customers.
•
Oriental Bank of Commerce was nationalized on 15th April in 1980.
Then OBC bank had 307 branches with Rs. 282.61 crores as deposits and as
advance Rs. 152.69.
The National Institute of Bank Management (NIBM), rated OBC Bank as
"CustomerFriendly"Bank.
• Oriental Commercial Bank Limited is licensed by the Central
Bank of Kenya as a commercial Bank to carry out banking activities under
Banking Act Chapter 488 of the Kenyan laws.
The Bank started its’ operations in the year 2002, with new
investments and Board of Directors, by taking over the assets and liabilities
of the erstwhile Delphis Bank, from Central Bank of Kenya. It is a middle sized
Bank and one of the financially robust Banks in, Kenya in terms of
shareholders fund and liquidity.
• Oriental Commercial Bank Ltd has its’ Head Office at Finance House,
Koinange Street- Nairobi. Presently the Bank has a branch network of four
branches in major towns namely
1 Nairobi.
2. Nakuru.
3 Eldoret, and
4 Kitale.
• The Bank is managed by a professional team of management who are
ably supervised by a Board of Directors consisting of eminent personalities of
society having high level of integrity and professional skills in their respective
areas of operations. We are committed to provide quality banking Service to
our customers, however by strictly adhering to the Regulatory Guidelines as
applicable within Kenya and, internationally. Our emphasis always remains on
carefully following ‘Know your Customers’ and ‘Anti Money Laundering’
Guidelines.

• Corporate banking
 • Personal banking
• Industrial finance
• Agricultural finance
• Financing of trade
• International banking
Oriental Bank Commerce has been ranked 38th amongst top 500 companies by The Economic
Times. OBC has earned 9th position among top 50 trusted brands in India.

Oriental Bank Commerce India maintains relationship with more than 200 leading international
banks world wide. OBC India has Rupee Drawing Arrangements with 15 exchange companies in
UAE and 1 in Singapore.

A competent Board of Directors and Management professionally run Oriental Commercial Bank
Ltd.
The Board of Directors is drawn from diverse backgrounds with vast expertise that
contributes towards,the achievement of company goals. They are as under: -

2.1.1: Management - Oriental Bank:-

Name Designation

Chairman and Managing

Alok K Misra
director

S C Sinha Executive Director

S K Newlay Director

V Vijay Sai Reddy Director

R S Maharshi Director

U K Khaitan Director

K B R Naidu Director

H Rathnakar Executive Director

Hegde

Sumita Dawra Director

Kamal Bhushan Director

 Vijay Jagirdar Director

T Valliappan Director

C K Sabharwal Director

2.1.2 HISTORY OF THE BANK

1980

➢ The Oriental Bank of Commerce Constituted through an Act of Parliament on 11th July.
The Bank transacts all kinds of banking business.
1993
➢ 12,80,000 shares of Rs 10 each already issued & subscribed.6,00,00,000 shares allotted at
a premium of Rs 50 per share to Indian Financial Institutions. 60,00,000 shares at a
premium of Rs 50 per share to Mutual Funds. 480,00,000 share at a premium of Rs 50
per share to Indian public. 23,80,000 shares to employees (additional 20,86,200 shares
are taken up).
1997
➢ Two Banks namely Punjab Co-operative Bank Ltd., and Bari Doab Bank Ltd., were
amalgamated with the bank under Government of India notification on 7th April.

➢ Ten branches of these two banks which were taken over re-started their operations as
Oriental Bank of Commerce branches w.e.f. 8th May.

➢ The correspondent network of the bank consisting of 138 major banks all over the world
and 27 NOSTRO Accounts enables the bank to meet the foreign exchange requirements
of its clientele.

1998

➢ The Bank had 841 branches, comprising 247 rural branches, 271 semi-urban branches,
220 urban branches and 103 Metropolitan branches.

➢ OBC is also launching credit cards shortly for which it has already tied up with Master-
Card.

➢ Oriental Bank of Commerce (OBC) has become the first public sector bank in the country
to join hands with Citibank to launch OBC co-branded credit card. The formal
agreement to this effect was signed between the two partners on 27th July.

➢ The launch of OBC card provides us access to Citibanks' world class banking technology
and processing expertise which will enable us to provide better value to our customers.
➢ Union Bank of India has launched a new deposit scheme called `Sahaj Jama Yojana'.

1999

➢ Oriental Bank of Commerce proposes to enter the insurance business in collaboration

with Switzerland-based Company, Zurich Re.

➢ The bank has set up special branch, asset recovery branch, one each at Delhi and Mumbai
and will also open the same in other parts of the country in future.

2000

➢ Oriental Bank of Commerce decided to set up a life insurance Venture with a foreign
partner.

➢ Mr. B.D. Narang has taken over as Chairman and Managing Director, of the bank with
effect from July 17.

➢ Mr. B.D. Narang has bagged the Indira Gandhi Rajbhasha Award for the year 1999-2000
for the Bank's outstanding achievements in Implementation of Official Language Policy.

2002

➢ Opens a specialised branch for women entrepreneurs

➢ Slashes interest rates on home loans

➢ Revises deposit rates

➢ Raises Rs 200 crore Tier-II capital through issue of bonds

➢ Ties up with Corporation Bank to share each other's ATM network 2003 Cuts domestic
term deposit rates

➢ Slashes home loan rates by 0.75-pc

➢ Approves return of Capital held by Central Govt.

➢ Revises interest rates, margins on SSI advances

➢ Unveils electronic bill pay service

➢ Slashes lending rates for Small Scale Industries (SSI)

➢ Joins hands with Infosys Technologies Ltd. and Wipro Ltd. for its Centralized Banking
Solution (CBS)
➢ Punjab National Bank (PNB) ties up with Oriental Bank of Commerce (OBC) to share
ATMs

➢ Small Industries Development Bank of India (SIDBI) enters into alliance with the
Oriental Bank of Commerce (OBC) to jointly work on projects in the field of small-scale,
infrastructure and service areas

➢ Shri Vaidya Devendra Triguna has been appointed as non-official Director of the Bank

➢ OBC in alliance with MasterCard has launched OBC Prepaid Card

➢ The company has launched a housing loan package aimed exclusively at the salaried
class from government, semi-government, public sector and reputed private sector
organizations.

2004

➢ Oriental Bank of Commerce has informed that Shri Karuna Sagar Principal, Bankers
Training College Mumbai has been appointed as a Director of the Bank in place of Shri
B.K. Vasdev, Regional Director, Reserve Bank of India, Kanpur w.e.f. January 9, 2004.

➢ New Holland Tractors ties up Oriental Bank of Commerce

➢ Oriental Bank induct Infy, Wipro for implementing IT project

➢ The Government of India on August 13 sanctioned the scheme for amalgamation of the
GTB with OCB that came into effect on August 14

2005

➢ Oriental Bank of Commerce (OBC) has recovered Rs 100 crore of non-performing asset
(NPAs) of the beleagured Global Trust Bank, which was merged into it in July, and
hopes to recover another Rs 100-150 crore soon.

➢ Government approves the second public issue of the Delhi-based Oriental Bank of
Commerce (OBC). The Rs 2,000-crore issue will bring down government equity in the
public sector bank to 51% from 66% currently.

➢ Mr K.N. Prithviraj appointed as the new Chairman and Managing Director, Oriental
Bank of Commerce.

➢ Oriental Bank of Commerce in consultation with all the Book Running Lead Managers
to the issue, has fixed the issue price at Rs 250 per share.

➢ Oriental Bank of Commerce appoints Ms H A Daruwalla as Chairman and Managing

Director upto December 12, 2008
2006

➢ Oriental Bank of Commerce (OBC) has informed that the Bank has signed the
Memorandum of Understanding (MOU) with the IL & FS Investment Securities Ltd, for
providing Online / Offline Share Trading facility for its customers.

➢ Oriental Bank of Commerce (OBC) has informed that the Central Govt. has appointed
Sh. Kamal Bhushan, Chief Manager, of the Bank as Officer Employee Director on the
Board of Directors of the Bank for aperiod of three years with effect from Nov 23, 2006
or until his successor is nominated or till he ceases to be an officer of the Bank of
whichever is earlier.

➢ Oriental Bank of Commerce has informed that the Central Govt. has appointed Sh. V
Vijayasai Reddy, Chartered Accountants, Chennai, as part time non official Director
under Chartered Accountant categoryon the Board of Directors of the Bank for a period
of three years with effect from date of notification (December 14, 2006) and/or until
further orders, whichever is earlier.

2007

➢ Oriental Bank of Commerce has raised its Benchmark Prime Lending Rate (BPLR) by
75 basis points to 12.50 per cent with effect from February 23.

Oriental Bank of Commerce (OBC) has joined hands with Escorts Ltd, a tractor manufacturer, for
providing retailtractor finance to farmers.

2.1.3 ACHIEVEMENTS
• Oriental bank of commerce announced its Q1FY2010 results on 29 July 2009,
delivering 62% y-o-y growth in net profits to Rs832 crore (Rs512cr), substantially
ahead of expectations on account of large treasury gains, apart from healthy operating
performance.

• While the bank’s deposit growth was reasonably robust at 4.4% sequentially and
26.5% y-o-y, unlike the peers its growth in advances also remained strong at 38% y-
o-y.

• In spite of being at the forefront of PLR cuts, the bank posted a healthy growth in Net
Interest Income (NII) of 29% y-o-y.
 • Other Income surged 113% y-o-y, driven by strong treasury gains of Rs355 crore
during the quarter in line with industry trends, even as Fee income was also robust at
45% y-o-y, on the back of strong balance sheet growth.

• Operating expenses were higher than expected on account of Rs150 crore of

provisions for imminent wage hikes.

• Gross and Net NPA ratios remained stable sequentially at 1.8% and 0.2%, with the
bank not adopting the guidelines of treating floating provisions as part of tier 2 capital
instead of adjusting against NPAs on express permission from the RBI.

2.2 VISION AND MISSION

Vision
• To evolve and position the bank as a world class, progressive, cost effective and
customer friendly institution providing comprehensive financial and related services.

• Integrating frontiers of technology and serving various segments of society especially

weaker section.

• Commited to excellence in serving the public and also excelling in corporate values

Mission
• To provide excellent professional services and improve its position as a leader in
financial and related services.

• Build and maintain a team of motivated workforce with high work ethos.

• Use latest technology aimed at customer satisfaction and act as an effective catalyst
for socio economic development.

2.3 VALUES AND ETHICS

• Bonding and Integrity
 • Ethical conduct

• Periodic disclosure

• Confidentiality and fair dealing

• Compliance with rules and regulations

2.4 PRODUCTS AND SERVICES

Saving Accounts

How to Open an Account ?

Download or obtain Account Opening Form from the nearest branch, fill it up
properly and deposit the same with the branch of your choice along with the
following :-

1. Furnish proof of Residence (In the form of a copy of Ration Card/ Passport/
Driving Licence/ Electricity Bill/ Telephone Bill/ Identity Card issued by any
reputed institution. ORIGINALS be shown only at the time of scrutiny of
papers)/ Business address.

2. Furnish 2 photographs of all the prospective account holder(s).

3. Introduction about you from a person known to the bank preferably by an

. Account Holder of the Branch, whose account has run satisfactorily at least for
the past six months.
4. Furnish PAN or declaration of Form No. 60 / 61as the case may be. The
minimum balance will be:-

In Rural /
Types In Urban / Metropolitan
Semi Urban
branches
branches

Without Cheque Book Facility Rs. 100 Rs. 500

With Cheque Book Facility Rs. 500 Rs. 1000

FOR SENIORS CITIZENS AND PENSIONERS

Without Cheque Book Facility Rs. 20 Rs. 20

With Cheque Book Facility Rs. 250 Rs. 250

Current Account –

How to Open an Account ?

Download or obtain Account Opening Form from the nearest branch, fill it up
properly and deposit the same with the branch of your choice along with the
following :-

1. Furnish proof of Residence (In the form of a copy of Ration Card/ Passport/
Driving Licence/ Electricity Bill/ Telephone Bill/ Identity Card issued by any
reputed institution. ORIGINALS be shown only at the time of scrutiny of papers)/
 Business address.

2. Furnish 2 photographs of all the prospective account holder(s).

3. Introduction about you from a person known to the bank preferably by an Account
Holder of the Branch, whose account has run satisfactorily at least for the past six
months.

4. Furnish undertakings/ documents/ declarations as applicable. Please refer Current

Account opening form for details.

5. Furnish PAN or declaration of Form No.60 / 61 as the case may be.

6. Minimum deposits.

In Rural / In Urban /
Semi Urban branches Metropolitan branches
Rs. 500 Rs. 5000

Pragati Deposit Scheme

LAUNCH OF “ORIENTAL BANK PRAGATI ACCOUNT SCHEME”

ORIENTAL BANK PRAGATI

Name of the scheme
ACCOUNT SCHEME

Date of Commencement 14.08.2007

Eligibility ALL NEW CURRENT ACCOUNTS

Minimum Amount of Deposit and Urban & Metropolitan Rs.5000/-

balance to be maintained Rural & Semi-urban Rs.1000/-

Validity of Scheme For a limited period only

Add on Facilities 1. One Free ATM/ Debit Card for

every
Account. The ATM/Debit Card
may also be permitted to the
partners of the firm/Directors of
the Company who are authorized
to operate the Account.
2. Free Personal Accident (Death)
insurance cover of Rs. 1 Lac (1st
year)
3. Waiver of 100% ABB Charges
during the 1st year.
4. Free internet / Tele banking
5. Waiver of Demat Account
Maintenance Charges (for One
Year)

For Accounts maintaining Average daily Additional Benefits

Current Account Balance of Rs. 5 Lacs
or more
1. Free Draft issuance Facility
2. Free RTGS Facility upto Rs.5
Lacs.
(However, mandatory RBI
charges plus applicable service
tax shall be recovered.

Scheme Credit Schemes - Flexible Housing Loan, Car Finance, Personal Loan, Credit Cards
Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card, OBC Farmers Welfare Trust

Corporate Banking - Gold Card scheme for exporters, EXIM finance

Business Sector - OBC Karigar credit card, OBC Kushal Udhami, OBC Pragati Udhami, OBC
Vikas Udhami

Flexi Fixed Deposit Scheme:-

We are pleased to inform that Flexi Deposit Scheme for the benefit of our depositor customers
has been approved by the Board on 18th October 2006. This scheme shall come into operation
w.e.f. 1st November 2006. The features of the scheme are as under:

PRODUCT & BENEFIT: Through reverse sweep facility, the amount lying in Flexi Fixed
Deposit shall be available to the depositor whenever there is a requirement of funds in his / her /
their operative account i.e. savings / current account. As such, whenever the depositor issues a
cheque or uses ATM card and the available balance in his/her connected Savings/Current
Account is not sufficient, Reverse Sweep will automatically withdraw the required amount from
Flexi Fixed Deposit account and the remaining amount in FFD will continue to earn the same
rate of interest, as agreed upon in the contract. In such event, the amount from flexi fixed deposit
shall be transferred to his / her / their savings / current account by following the LIFO (last in
first out) method.

However, the funds to be transferred as a reverse sweep to Savings Bank/Current Account will
also meet the requirement of maintaining minimum balance.

ISSUANCE OF PASS SHEET (STATEMENT) IN LIEU OF DEPOSIT RECEIPTS

In lieu of the regular Term Deposit Receipt, the Flexi Fixed deposit Pass Sheet shall be made
available to the customers maintaining account under the scheme. A well established
arrangement is already in place for generation and dispatch of this statement to the customers.
COPEC Secunderabad will issue pass sheet to the customers of all the branches of the Bank who
maintain account under this flexi deposit scheme.

RESTRICTION ON LOAN:
No loan / OD in any shape shall be allowed against deposit held in Flexi Fixed
Deposit Scheme.

2.5 AWARDS AND DISTINCTIONS

• Ranked among top 50 companies by the leading financial daily, Economic

Times.
• Ranked as 323rd biggest bank in the world by Bankers Almanac (January
2006), London.
• Earned 9th place among India's Most Trusted top 50 service brands in
Economic Times- A.C Nielson Survey.
• Included in the top 1000 banks in the world according to The Banker, London.
• Golden Peacock Award for Excellence in Corporate Governance - 2005 by
Institute of Directors.
• FICCI's Rural Development Award for Excellence in Rural Development –
2005

Directors Report:

The Board of directors have pleasure in presenting this Annual report together
with the Audited Balance Sheet and Profit & Loss Account of the Bank for the Year
ended 31st March, 2009.
The Board of Directors thank Government of India, Ministry of Finance,
Department of Economic Affairs and Reserve Bank of India and other Government &
Regulatory Agencies for their valuable guidance and continued support provided to
the Bank throughout the year. The Board of Directors are also grateful to the valued
customers, esteemed shareholders, stakeholders and public at large for their patronage
and confidence reposed in the Bank.

The Board of directors place on record their great appreciation of the

commitment, sense of involvement and dedication exhibited by each staff member in
the overall development, growth and prosperity of the Bank and Look forward to their
continued support and whole-hearted co-operation for realization of the goals in the
year ahead.

Oriental Bank of Commerce Fact File:

 Amongst the strongest banks in India
 High Capital Adequacy Ratio
 Consistent Profit-making Bank
: