A PROJECT REPORT ON FINANCIAL SERVICES OF BANKS

Submitted to University of Mumbai in Partial fulfillment Of the requirement of the Degree of B.Com BA !" # $ " SU%A C&'

Under guidan(e of PROF. RUEEN PATEL

)PM*S !.# +oshi College of Arts .# Bede,ar College of Commer(e

-hane .&/ A(ademi( 0ear1 2343544 B05 JEMINI.J.PATIL

ACKNOWLEDGEMENT

"n (om6leting this 6ro7e(t " am dee6ly (ons(ious of my debt to all those8 9ithout 9hose 9arm su66ort8 enragement $ guidan(e this 6ro7e(t 9as not 6ossible to (om6lete. " am s6e(ially greatful to Prof Rueen Pate my guide to this 6ro7e(t8 She a(tually gave the life to this 6ro7e(t and guidan(e of my 6arents $ friends this 6ro7e(t too, sha6e. -hey also 6rovided me mu(h needed (riti(ism $ en(ouragement.

Jemini Patil

DECLARATION

" am +emini +. Patil studying in -.0.Ban,ing $ "nsuran(e hereby de(lare that " have done a 6ro7e(t on :inan(ial Servi(es 6rovided by Ban,s'. As required by the university rules8 " state that the 9or, 6resented in this thesis is original in nature and to the best my ,no9ledge8 has not been submitted so far to any other university. ;henever referen(es have been made to the 9or, of others8 it is (learly indi(ated in the sour(es of information in referen(es.

Student .+emini. +. Patil/

Pla(e1 -hane Date: October, 2010

E!ECUTIVE SUMMAR"
Ban,s are the :inan(ial "nstitution 9hi(h satisfies the individual $ grou6 goals 9ith 6ro6er systems of rules8 regulations8 6oli(ies8 servi(es8 6ro(edures $ strategies. -o a(hieve the goals and ob7e(tives the main (om6onent of the ban,s are the (ustomers. Ban,s are the diversified finan(ial servi(es (om6any that 6rovide a range of servi(es to (ustomer in(luding retail ban,ing8 venture (a6ital8 6rivate equity8 9or,ing (a6ital finan(e et(. -he aim of the ban,s is to 6rovide state5of5the5art8 lo9 (ost and effi(ient ban,ing servi(es8 9ith a fo(us on in(reasing fee5based in(ome. in su(h 6rodu(ts. "ndia*s finan(ial servi(es se(tor is e<6e(ted en7oy generally strong gro9th during (oming years8 driven by rising 6ersonal in(omes8 finan(ial se(tor liberali=ation and the gro9th of a more (onsumer oriented8 (redit5oriented e9 innovative 6rodu(ts are been offered8 even a small investor is able to invest

(ulture. -his is e<6e(ted to lead to in(reasing demand for finan(ial 6rodu(ts8 in(luding (onsumer loans as 9ell as investment 6rodu(ts.

INDE!

SR NO #

PARTICULARS

PG NO

Overvie9 of Ban,ing 4.4 "ntrodu(tion to Ban,s 4.2 >istory of Ban,s 4.? :un(tions of Ban,s 4.@ Ban,ing Produ(ts 4.A "ntrodu(tion to :inan(ial Servi(es 4.B :eatures of :inan(ial Servi(es 4.C "m6ortan(e of :inan(ial Servi(es 4.D Sour(es of %evenue 4.E Ob7e(tives of :inan(ial Servi(es 4.43 Causes of :inan(ial "nnovation

4.44 Present S(enario of :inan(ial Servi(es

Channels through 9hi(h Produ(ts $ Servi(es are offered 2.4 Bran(hes 2.2 Mobile Ban,ing 2.? -ele6hone Ban,ing 2.@ "nternet Ban,ing 2.A A-M

Produ(ts $ Servi(es of Ban,s ?.4 De6osits ?.2 Credit Cards ?.? Foans ?.@ "nvestments

&

"nnovative :inan(ial Produ(ts $ Servi(es

'

Overvie9 of "C"C" Ban, A.4 >istory of "C"C" Ban, A.2 "ntrodu(tion of "C"C" Ban, A.? Produ(ts and Servi(es A.@ A9ards and %e(ognitions

( ) * +

Data Analysis $ "nter6retation Con(lusion Suggestion Bibliogra6hy

#,

Anne<ure

LIST OF DIAGRAM-S

SR.NO 4

PARTICULARS 4.? :un(tions of Ban,s 4.D Classifi(ation of :inan(ial Servi(es

PG.NO

$ %

)arious Channels of Servi(es ?.4 -y6es of De6osits ?.2 -y6es of Credit Cards ?.? )arious ty6es of Foans ?.@ Alternative Avenues for "nvestment

C.APTER/ # OVERVIEW OF BANKING

C.APTER 0 #

OVERVIEW OF BANKING
#.# INTRODUCTION TO BANK A ban, has been des(ribed as an institution engaged in a((e6ting de6osits and granting loans. "t is the institution 9hi(h deals in money and (redit. "t (an also be des(ribed as an institution 9hi(h borro9s idle resour(es8 ma,es fund available to those 9ho need it and hel6s in (hea6 remittan(e of money from one 6la(e to another. "n the modern time term ban, is used in 9ider term. o9 it does not refer only to 6arti(ular 6la(e of lending and de6ositing money but it also a(ts as an agent 9hi(h loo,s after the various finan(ial 6roblems of its (ustomers. #.$ .ISTOR" OF BANKS1 -he ban,ing system in "ndia is based on British ban,ing (om6any 9hi(h is largely bran(h ban,ing. Commer(ial ban,s in "ndia 9ere started during the latter half of 4Eth (entury Ban, of Bengal8 Ban, of Bombay and Ban, of

Madras 9ere later amalgamated to form one ban, (alled as "m6erial ban, of "ndia under the "m6erial ban, of "ndia A(t 4E23. -he "m6erial ban, (arried 9ith business of (ommer(ial ban, manages the 6ubli( debt offi(e of (entral and state government. -he se(ond half of 4Eth (entury sa9 establishment of Ban, of Baroda8 Allahabad ban,8 and Pun7ab ational Ban,. -hese ban,s 9ere set u6 by mer(hants and traders to (ombined trading 9ith ban,ing. -hese led to the series if failures of ban,s. -he strengthening of ban,ing system too, 6la(e after the establishment of %eserve Ban, of "ndia8 4E?E as is em6o9ers to regulate the ban,ing money8 ins6e(tion of mergers and a(quisition in terms of Ban,ing Com6anies A(t 4E@E 9hi(h later (ame to be ,no9n as Ban,ing %egulation A(t 4E@E. #.% FUNCTIONS OF BANKS -hough borro9ing and lending (onstitute the main fun(tions of ban,ing8 yet they are not only fun(tions of (ommer(ial ban,s. Commer(ial ban,s are involved in diversified a(tivities and 6erform varieties of fun(tion. -he fun(tions of a modern ban, are (lassified under the follo9ing heads1 G C.ART1 FUNCTION OF BANKS

#.& BANKING PRODUCTS Ban,s in "ndia have traditionally offered mass ban,ing 6rodu(ts. Most (ommon de6osit 6rodu(ts being Savings Ban,8 Current A((ount8 -erm de6osit A((ount and lending 6rodu(ts being Cash Credit and -erm Foans. Due to %eserve Ban, of "ndia guidelines8 Ban,s have had little to do besides a((e6ting de6osits at rates fi<ed by %eserve Ban, of "ndia and lend amount arrived by the formula sti6ulated by %eserve Ban, of "ndia at rates 6res(ribed by the latter. PF% .Prime lending rate/ 9as the ben(hmar, for interest on the lending 6rodu(ts. But PF% itself 9as8 more often than not8

di(tated by %B". :urther8 remittan(e 6rodu(ts 9ere limited to issuan(e of Drafts8 -elegra6hi( -ransfers8 and Ban,ers Cheque and "nternal transfer of funds. "n vie9 of several develo6ments in the 4EE3s8 the entire ban,ing 6rodu(ts stru(ture has undergone a ma7or (hange. As 6art of the e(onomi( reforms8 ban,ing industry has been deregulated and made (om6etitive. e9 6layers have added to the (om6etition. "- revolution has made it 6ossible to 6rovide ease and fle<ibility in o6erations to (ustomers. %a6id strides in information te(hnology have8 in fa(t8 redefined the role and stru(ture of ban,ing in "ndia. :urther8 due to e<6osure to global trends after "nformation e<6losion led by "nternet8 (ustomers 5 both "ndividuals and Cor6orate 5 are no9 demanding better servi(es 9ith more 6rodu(ts from their ban,s. :inan(ial mar,et has turned into a buyerHs mar,et. Ban,s are also (hanging 9ith time and are trying to be(ome one5sto6 finan(ial su6ermar,ets. A fe9 foreign $ 6rivate se(tor ban,s have already introdu(ed (ustomi=ed ban,ing 6rodu(ts li,e "nvestment Advisory Servi(es8 S#F "" a((ounts8 Photo5(redit (ards8 Cash Management servi(es8 "nvestment 6rodu(ts and -a< Advisory servi(es. A fe9 ban,s have gone in to mar,et mutual fund s(hemes. &ventually8 the Ban,s 6lan to mar,et bonds and debentures8 9hen allo9ed. "nsuran(e 6eddling by Ban,s 9ill be a reality soon. -he re(ent Credit Poli(y of %B" announ(ed on 2C.@.2333 has further fa(ilitated the entry of ban,s in this se(tor. Ban,s also offer advisory servi(es termed as H6rivate ban,ingH 5 to Ihigh relationshi6 5 valueI (lients.

#.' INTRODUCTION TO FINANCIAL SERVICES -he "ndian finan(ial servi(es industry has undergone a metamor6hosis sin(e 4EE3. During the late seventies $ eighties8 the "ndian finan(ial servi(es industry 9as dominated by (ommer(ial ban,s and other finan(ial institution 9hi(h (ater to the requirements of the "ndian industry. -he e(onomi( liberali=ation has brought in a (om6lete transformation in the "ndian finan(ial servi(es industry. -he term :inan(ial Servi(es' in a broad sense means mobili=ing and allo(ating savings'. -hus it in(ludes all a(tivities involved in the

transformation of savings into investment. -he Gfinan(ial servi(e* (an also be (alled Gfinan(ial intermediation*. :inan(ial intermediation is a 6ro(ess by 9hi(h funds are mobili=ed from a large number of savers and ma,e them available to all those 9ho are in need of it and 6arti(ularly to (or6orate (ustomers. -hus8 finan(ial servi(e se(tor is a ,ey area and it is very vital for industrial develo6ments. A 9ell develo6ed finan(ial servi(es industry is absolutely ne(essary to mobili=e the savings and to allo(ate them to various investable (hannels and thereby to 6romote industrial develo6ment in a (ountry. :inan(ial servi(es8 through net9or, of elements su(h as finan(ial institution8 finan(ial mar,ets and finan(ial instruments8 serve the needs of individuals8 institutions and (or6orate. "t is through these elements that the fun(tioning of the finan(ial system is fa(ilitated. Considering its nature and im6ortan(e8 finan(ial servi(es are regarded as the fourth element of the finan(ial system.

#.( FEATURES OF FINANCIAL SERVICE Cu2to3er/Or4ente51 Fi,e any other servi(e industry finan(ial servi(e industry is also a (ustomer5oriented one. -hat (ustomer is the ,ing and his requirements must be satisfied in full should be the basi( tenent of any finan(ial servi(e industry. "t (alls for designing innovative finan(ial 6rodu(ts suitable to varied ris,5return requirements of (ustomer.

 Intan6474 4t81 :inan(ial servi(es are intangible and therefore8 they (annot be standardi=ed or re6rodu(ed in the same form. >en(e8 there is a need to have a tra(, re(ord of integrity8 re6utation8 good (or6orate image and timely delivery of servi(es. S43u taneou2 Perfor3an9e1 0et another feature is that both 6rodu(tion and su66ly of finan(ial servi(es have to be 6erformed simultaneously. -herefore8 both su66liers of servi(es and (onsumers should have a good ra66ort8 (lear5(ut 6er(e6tion and effe(tive (ommuni(ation. Do34nan9e of .u3an E e3ent 1 :inan(ial servi(es are dominated by human element and thus8 they are 6eo6le5intensive. "t (alls for (om6etent and s,illed 6ersonnel to mar,et the quality finan(ial 6rodu(ts. But8 quality (annot be homogeni=ed sin(e it varies 9ith time8 6la(e and (ustomer to (ustomer. Per42:a74 4t81 :inan(ial servi(es are immediately (onsumed and hen(e inventories (annot be (reated. -here is a greater need for balan(ing demand and su66ly 6ro6erly. "n other 9ords8 mar,eting and o6erations should be (losely inter5lin,ed..

#.) IMPORTANCE OF FINANCIAL SERVICES E9ono349 Gro;t:1 -he finan(ial servi(e industry mobili=es the savings of the 6eo6le and (hannels them into 6rodu(tive investment by 6roviding various servi(es to the 6eo6le. "n fa(t8 the e(onomi( develo6ment of a nation de6ends u6on these savings and investment.

 Pro3ot4on of Sa<4n621 -he finan(ial servi(e industry 6romotes savings in the (ountry by 6roviding transformation servi(es. "t 6rovides liability8 asset and si=e transformation servi(e by 6roviding large loans on the basis of numerous small de6osits. "t also 6rovides maturity transformation servi(es by offering short5term (laim to savers on their liquid de6osit and 6roviding long5term loans to borro9ers. Ca=4ta For3at4on1 -he finan(ial servi(e industry fa(ilitates (a6ital formation by rendering various (a6ital mar,et intermediary servi(es J (a6ital formation in the very basis for e(onomi( gro9th. "t is the 6rin(i6al mobili=er8 of sur6lus funds to finan(e 6rodu(tive a(tivities and thus it 6romotes (a6ital a((umulation. Pro<424on of L4>u454t81 -he finan(ial servi(e industry 6romotes liquidity in the system by allo(ating and reallo(ating savings and investment into various avenues of e(onomi( a(tivity. "t fa(ilitates easy (onversion of finan(ial asset into liquid (ash at the dis(retion of the holder of su(h assets. F4nan94a Inter3e54at4on1 -he finan(ial servi(e industry fa(ilitates the fun(tion of intermediation bet9een savers and investors by 6roviding a means and a medium of e<(hange and by underta,ing innumerable servi(es. Contr47ut4on to GNP1 -he (ontribution of finan(ial servi(es to # P has been going on in(reasing year after year in almost all (ountries in re(ent times.

 Creat4on of E3= o83ent O==ortun4t4e21 -he finan(ial servi(e industry (reates and 6rovides em6loyment o66ortunities to millions of 6eo6le all over the 9orld.

#.* SOURCES OF REVENUE A((ordingly8 there are t9o (ategories of sour(es of in(ome for a finan(ial servi(e (om6any namely1 fund based $fee5 based. :und5based in(ome

(omes mainly from interest s6read8 lease rentals8 in(ome from investments in (a6ital mar,et and real estate. On the other hand8 fee based in(ome has its sour(es in mer(hant ban,ing8 advisory servi(es8 (ustodial servi(es8 loan syndi(ation et(. in(ome has its sour(es in mer(hant ban,ing8 advisory servi(es8 (ustodial servi(es8 loan syndi(ation et(. A ma7or 6art of in(ome is earned through fund5based a(tivities. At the same time8 it involves a large share of e<6enditure in the form of interest $ bro,erage. "t means that su(h (om6anies should have to (om6romise the quality of its investment. On the other hand fee5based in(ome does not involve mu(h ris,. CLASSIFICATION OF FINANCIAL SERVICES

Fund-based Activities

Fee-based Activities

4 .Feasing 2 .>ire Pur(hase ? .Dis(ounting @ .Foans A .)enture Ca6ital B .>ousing :inan(e C .:a(toring

#.+ OBJECTIVES OF FINANCIAL SERVICES Fun5 ra424n61 :inan(ial servi(es hel6 to raise the required funds from a host of investors8 individuals8 institution and (or6orate. :or this 6ur6ose8 various instruments of finan(e are used. Fun52 5e= o83ent1 An array of finan(ial servi(es is available in the finan(ial mar,ets 9hi(h hel6 the 6layers to ensure an effe(tive 4 ."ssue Management 2 .Portfolio Management ? .Ca6ital %estru(turing @ .Foan Syndi(ation A .Merger $ A(quisition B .Cor6orate Coun(elling C .:oreign Collaborations de6loyment of funds raised. Servi(es su(h as bill dis(ounting8 6ar,ing of short5term funds in the money mar,et8 (redit rating $se(uriti=ation

of debts are 6rovided by finan(ial servi(es firms in order to ensure effi(ient management of funds. S=e94a 4?e5 2er<49e21 -he finan(ial servi(e se(tor 6rovides

s6e(iali=ed servi(es su(h as (redit rating8 venture (a6ital finan(ing8 lease finan(ing8 mutual funds8 (redit (ards8 housing finan(e8 et( besides ban,ing and insuran(e. "nstitutions and agen(ies su(h as sto(, e<(hanges8 non5ban,ing finan(e (om6anies8 subsidiaries of finan(ial institutions8 ban,s $ insuran(e (om6anies also 6rovide these servi(es. Re6u at4on1 -here are agen(ies that are involved in the regulation of the finan(ial servi(es a(tivities. "n "ndia8 agen(ies su(h as the Se(urities and &<(hange Board of "ndia .S&B"/8 %eserve Ban, of "ndia .%B"/ and the De6artment of Ban,ing and "nsuran(e of the #overnment of "ndia8 regulate the fun(tioning of the finan(ial servi(e institutions. E9ono349 6ro;t:1 :inan(ial servi(es (ontribute8 in good measure8 to s6eeding u6 the 6ro(ess of e(onomi( gro9th $ develo6ment.

#.#, CAUSES OF FINANCIAL INNOVATION :inan(ial intermediaries have to 6erform the tas, of finan(ial innovation to meet the dynami(ally (hanging needs of the e(onomy. -here is a dire ne(essity for the finan(ial intermediaries to go for innovation due to follo9ing reasons1

 Lo; =rof4ta74 4t81 -he 6rofitability of the ma7or finan(ial intermediary8 namely ban,s has been very mu(h affe(ted in re(ent times. -here is a de(line in the 6rofitability of traditional ban,ing 6rodu(ts. So8 they have (om6elled to see, out ne9 6rodu(ts 9hi(h may fet(h high returns. Keen 9o3=et4t4on1 -he entry of many finan(ial intermediaries in the finan(ial se(tor mar,et has led to severe (om6etition among themselves. -his ,een (om6etition has 6aved the 9ay for the entry of varied nature of innovative finan(ial 6rodu(ts so as to meet the varied requirements of the investors. E9ono349 47era 4?at4on1 %eform of the finan(ial se(tor (onstitutes the most im6ortant (om6onent of "ndia*s 6rogramme to9ards e(onomi( liberali=ation. -he re(ent e(onomi( liberali=ation measures have o6ened the door to foreign (om6etitors to enter into our domesti( mar,et. Deregulation in the form of elimination of e<(hange (ontrols and interest rate (eilings have made the mar,et more (om6etitive. "nnovation has be(ome a must for survival. I3=ro<e5 9o33un49at4on te9:no o681 -he (ommuni(ation

te(hnology has be(ome so advan(ed that even the 9orld*s issuers (an be lin,ed 9ith the investors in the global finan(ial mar,et 9ithout any diffi(ulty by means of offering so many o6tions and o66ortunities. >en(e8 innovative 6rodu(ts are brought into the domesti( mar,et in no time. Cu2to3er 2er<49e1 o9adays8 the (ustomer*s e<6e(tations are very

great. -hey 9ant ne9er 6rodu(ts at lo9er (ost or at lo9er (redit ris,

to re6la(e the e<isting ones. -o meet this in(reased (ustomer so6histi(ation8 the finan(ial intermediaries are (onstantly underta,ing resear(h in order to invent a ne9 6rodu(t 9hi(h may suit to the requirement of the investing 6ubli(. "nnovations thus hel6 them in soli(iting ne9 business. G o7a 43=a9t1 Many of the 6roviders and users of (a6ital have (hanged their roles all over the 9orld. :inan(ial intermediaries have (ome out of their traditional a66roa(h and they are ready to assume more (redit ris,s. As a (onsequen(e8 many innovations have ta,en 6la(e in the global finan(ial se(tor 9hi(h has its o9n im6a(t on the domesti( se(tor also. In<e2tor a;arene221 ;ith a gro9ing a9areness amongst the investing 6ubli(8 there has been a distin(t shift from investing the savings in 6hysi(al assets li,e gold8 silver8 land et(. to finan(ial assets li,e shares8 debentures8 mutual funds et(. -o meet the gro9ing a9areness of the 6ubli(8 innovation has be(ome the need of the hour.

#.## PRESENT SCENARIO OF FINANCIAL SERVICES

 Con2er<at423 to 58na34231 At 6resent8 the finan(ial system in "ndia is in a 6ro(ess of ra6id transformation8 6arti(ularly after the introdu(tion of reforms in the finan(ial se(tor. -he main ob7e(tive of the finan(ial se(tor reforms is to 6romote an effi(ient8 (om6etitive and diversified finan(ial system in the (ountry. -his is essential to raise the allo(ative effi(ien(y of available savings and to 6romote the a((elerated gro9th of the e(onomy as a 9hole. -he emergen(e of various finan(ial institution and regulatory bodies has transformed the finan(ial servi(es se(tor from being a (onservative industry to a very dynami( one. E3er6en9e of Pr43ar8 E>u4t8 Mar@et1 -he (a6ital mar,ets have be(ome a 6o6ular sour(e of raising finan(e. -he aggregate funds raised by the industries have gone from %s. AECB (rore in 4EE45E2 to %s. ?2?D2 (rore in 233B53C. -hus the 6rimary mar,et has emerged as an im6ortant vehi(le to (hanneli=e the savings of the individuals and (or6orates for 6rodu(tive 6ur6oses and thus to 6romote the industrial $ e(onomi( gro9th of our nation. Con9e=t of Cre54t Rat4n61 -he investment de(isions of the investors have been based on fa(tors li,e name re(ognition of the (om6any8 re6utation of 6romoters et(. no98 grading from an inde6endent agen(y 9ould hel6 the investor in his 6ortfolio management and thus8 equity grading is going to 6lay a signifi(ant role in investment de(ision ma,ing.

o9 it is mandatory for non5ban,ing finan(ial (om6anies to get (redit rating for their debt instruments. -he ma7or (redit rating agen(ies fun(tioning in "ndia are1 i. ii. iii. iv. Credit %ating "nformation Servi(es of "ndia Ftd. Credit Analysis and %esear(h Ftd. "nvestment "nformation and Credit %ating Agen(y. Duff Phel6s Credit %ating Pvt. Ftd.

Pro9e22 of G o7a 4?at4on1 -he 6ro(ess of globali=ation ha 6aved the 9ay for the entry of innovative finan(ial 6rodu(ts into our (ountry. -he government is very ,een in removing all obsta(les that stand in the 9ay of inflo9 of foreign (a6ital. "ndia is li,ely to enter the full (onvertibility era soon. >en(e8 there is every 6ossibility of introdu(tion of more and more innovative finan(ial servi(es in our (ountry. Pro9e22 of L47era 4?at4on1 -he government of "ndia has initiated many ste6s to reform the finan(ial servi(es industry. -he #overnment has already s9it(hed over to free 6ri(ing of issues from 6ri(ing issues by the Controller of (a6ital issues. -he interest rates have been deregulated. -he 6rivate se(tor has been 6ermitted to 6arti(i6ate in ban,ing and mutual funds and the 6ubli( se(tor underta,ings are being 6rivati=ed. -he finan(ial servi(e industry in "ndia has to 6lay a 6ositive and dynami( role in the yearsA "ndia has to 6lay a 6ositive and dynami( role in the years to (ome by offering many innovative

6rodu(ts to suit to the varied requirements of the millions of 6ros6e(tive investors s6read throughout the (ountry.

C.APTER/ $ VARIOUS C.ANNELS T.ROUG. W.IC. SERVICES A PRODUCTS ARE OFFERED

C.APTER/$ VARIOUS C.ANNELS T.ROUG. W.IC. PRODUCTS A SERVICES ARE OFFERED B" BANKS

C.ARTS1 VARIOUS C.ANNELS OF SERVICES

$.# BRANC.ES A bran(h8 ban,ing (enter or finan(ial (enter is a retail lo(ation 9here a ban,8 (redit union8 or other finan(ial institution offers a 9ide array of fa(e5to5fa(e and automated servi(es to its (ustomers. "n the 6eriod from 443354?33 ban,ing started to e<6and a(ross &uro6e and ban,s began o6ening Gbran(hes* in remote8 foreign lo(ations to su66ort international trade. >istori(ally8 bran(hes 9ere housed in im6osing buildings8 often in a neo5(lassi(al ar(hite(ture style. -oday8 bran(hes may also ta,e the form of smaller offi(es 9ithin a larger (om6le<8 su(h as a sho66ing mall. -raditionally8 the bran(h 9as the only (hannel of a((ess to a finan(ial institution*s servi(es. Servi(es 6rovided by a bran(h in(lude (ash 9ithdra9als and de6osits from a demand a((ount 9ith a ban, teller8 finan(ial advi(e through a s6e(ialist8 safe de6osit bo< rentals8 bureau de (hange8 insuran(e sales8 et(. As of the early 24 st Century8 features su(h as Automated -eller Ma(hine .A-M/8 tele6hone and online ban,ing8 allo9 (ustomers to ban, from remote lo(ations and after business hours. -his has (aused finan(ial institution to redu(e their bran(h business hours and to merge smaller bran(hes into larger ones. -hey (onverted some into mini5

bran(hes 9ith only A-Ms for (ash 9ithdra9al and de6ositingK (om6uter terminals for online ban,ing and (heque de6ositing ma(hines. Some finan(ial institutions8 to sho9 a friendlier image8 offer a boutique or (offee house5li,e environment in their bran(hes8 9ith sit5do9n (ounters8 refreshments8 intera(tive dis6lays. Some bran(hes also have drive5through teller 9indo9s or A-Ms. $.$ MOBILE BANKING Mobile ban,ing also ,no9n as M5Ban,ing8 SMS Ban,ing is a term used for 6erforming balan(e (he(,s8 a((ount transa(tions8 6ayment et(. Over the last fe9 years8 the mobile and 9ireless mar,et has been one of the fastest gro9ing mar,ets in the 9orld and it is still gro9ing at a ra6id 6a(e. ;ith mobile te(hnology8 ban,s (an offer servi(es to their (ustomers su(h as doing funds transfer 9hile travelling8 re(eiving online u6dates of sto(, 6ri(e or even 6erforming sto(, trading 9hile being stu(, in traffi(. A s6e(ifi( sequen(e of SMS messages 9ill enable the system to verify if the (lient has suffi(ient funds in his or her 9allet and authori=e a de6osit or 9ithdra9al transa(tion at the agent. Many believe that mobile users have 7ust started to fully utili=e the data (a6abilities in their mobile 6hones. "n Asian (ountries li,e "ndia8 China8 9here mobile infrastru(ture is (om6aratively better than the fi<ed5line infrastru(ture8 and in &uro6ean (ountries8 9here mobile 6hone 6enetration is very high8 mobile ban,ing is li,ely to a66eal even more. Mo74 e Ban@4n6 Ser<49e2 A99ount Infor3at4on

4/ Mini5statement and (he(,ing of a((ount history 2/ Alerts on a((ount a(tivity ?/ Monitoring of term de6osits @/ A((ess to loan statements A/ A((ess to (ard statements B/ Mutual fundL equity statements C/ Pension 6lan management D/ "nsuran(e 6oli(y management E/ Status on (heque8 sto6 6ayment on (heque 43/ Ordering (heque boo,s 44/ Balan(e (he(,ing in the a((ount 42/ %e(ent transa(tions 4?/ Due date of 6ayment 4@/ P" 6rovision 4A/ Blo(,ing of (ards Pa83ent2B De=o24t2B W4t:5ra;a 2 an5 Tran2fer2 4/ Domesti(s and international fund transfers 2/ Mi(ro56ayment handling ?/ Mobile re(harging

@/ Commer(ial 6ayment 6ro(essing A/ Bill 6ayment 6ro(essing B/ Peer to Peer 6ayments C/ ;ithdra9al at ban,ing agent D/ De6osit at ban,ing agent

$.% TELEP.ONE BANKING -ele6hone ban,ing is a servi(e 6rovided by a finan(ial institution 8 9hi(h allo9s its (ustomers to 6erform transa(tions over the tele6hone. Most tele6hone ban,ing servi(es use an automated 6hone ans9ering system 9ith 6hone ,ey6ad res6onse or voi(e re(ognition (a6ability. -o guarantee se(urity8 the (ustomer must first authenti(ate through a numeri( or verbal 6ass9ord or through se(urity questions as,ed by a live re6resentative. ;ith the obvious e<(e6tion of (ash 9ithdra9als $ de6osits8 it offers virtually all the features of an automated teller ma(hine1 a((ount balan(e

information and list of latest transa(tions8 ele(troni( bill 6ayments8 funds transfers bet9een a (ustomer*s a((ounts.et( Usually8 (ustomers (an also s6ea, to alive re6resentative lo(ated in a (all (entre or a bran(h8 although this feature is not al9ays guaranteed to be offered 2@LC. "n addition to the self5servi(e transa(tions listed earlier8 tele6hone ban,ing re6resentatives are usually trained to do 9hat 9as traditionally available only at the bran(h1 loan a66li(ations8 investments 6ur(hases and redem6tions8 (heque boo, orders8 debit (ard re6la(ements8 (hange of address8 et( Ban,s 9hi(h o6erate mostly or e<(lusively by tele6hone are ,no9n as 6hone ban,s. -hey also hel6 moderni=e the user by using s6e(ial te(hnology.

$.& INTERNET

BANKING

"nternet ban,ing or &5ban,ing means any user 9ith a 6ersonal (om6uter and a bro9ser (an get (onne(ted to his ban, 5s 9ebsite to 6erform any of the virtual ban,ing fun(tions. "n internet ban,ing system the ban, has a (entrali=ed database that is 9eb5enabled. All the servi(es that the ban, has 6ermitted on the internet are dis6layed in menu. Any servi(e (an be sele(ted and further intera(tion is di(tated by the nature of servi(e. -he traditional bran(h model of ban, is no9 giving 6la(e to an alternative delivery (hannels 9ith A-M net9or,. On(e the bran(h offi(es of ban, are inter(onne(ted

through terrestrial or satellite lin,s8 there 9ould be no 6hysi(al identity for any bran(h. "t 9ould a borderless entity 6ermitting anytime8 any9here and any ho9 ban,ing INTERNET BANKING SERVICES #C B4 Pa83ent Ser<49e1 0ou (an fa(ilitate 6ayment of ele(tri(ity and tele6hone bills8 mobile 6hone8 (redit (ard and insuran(e 6remium bills as ea(h ban, has tie5u6s 9ith various utility (om6anies8 servi(e 6roviders and insuran(e (om6anies8 a(ross the (ountry. -o 6ay your bills8 all you need to do is (om6lete a sim6le one5time registration for ea(h biller. 0ou (an also set u6 standing instru(tions online to 6ay your re(urring bills8 automati(ally. #enerally8 the ban, does not (harge (ustomer for online bill 6ayment. $C Fun5 Tran2fer1 0ou (an transfer any amount from one a((ount to another of the same or any another ban,. Customers (an send money any9here in "ndia. On(e you login to your a((ount8 you need to mention the 6ayee*s a((ount number8 his ban, and the bran(h. -he transfer 9ill ta,e 6la(e in a day or so8 9hereas in a traditional method8 it ta,es about three 9or,ing days. %C Cre54t Car5 Cu2to3er21 ;ith "nternet ban,ing8 (ustomers (an not

only 6ay their (redit (ard bills online but also get a loan on their (ards. "f you lose your (redit (ard8 you (an re6ort lost (ard online. &C In<e2t3ent1 0ou (an no9 o6en an :D online through funds transfer. o9 investors 9ith interlin,ed demat a((ount and ban, a((ount (an easily trade in the sto(, mar,et and the amount 9ill be automati(ally debited from their res6e(tive ban, a((ounts and the shares 9ill be

(redited in their demat a((ount. Moreover8 some ban,s even give you the fa(ility to 6ur(hase mutual funds dire(tly from the online ban,ing system. 'C Re9:ar64n6 8our Pre=a45 P:one1 o9 7ust to65u6 your 6re6aid

mobile (ards by logging in to "nternet ban,ing. By 7ust sele(ting your o6eratorHs name8 entering your mobile number and the amount for re(harge8 your 6hone is in a(tion 9ithin no time. (C S:o==4n61 ;ith a range of all ,ind of 6rodu(ts8 you (an sho6 online and the 6ayment is also made (onveniently through your a((ount. 0ou (an also buy rail9ay and air ti(,ets through "nternet ban,ing.

$.' AUTOMATED TELLER MAC.INE DATMC Automated -eller Ma(hine is a me(hanism 9hi(h enables the (ustomer to 9ithdra9 money from his a((ount 9ithout visiting the ban, bran(h. An A-M (ard is issued to the (ustomer by the ban, in order to ma,e (ash 9ithdra9als at (ash ma(hine. -his servi(e hel6s the A-M (ustomer to 9ithdra9 money even 9hen the ban,s are (losed. -his (an be done by inserting the (ard in the A-M and entering the Personal "dentifi(ation umber $ se(ret 6ass9ord.

A-Ms a(t as off5site bran(hes of ban,s and 6rovide almost all servi(es that are available from a manually o6erated bran(h. -he (ustomer (an8 not only 9ithdra9 (ash8 but also de6osit money8 get a((ount statements8 enable transfer of funds et(. -he (ustomer 9ho 9ants to de6osit (ash should 6ut the notes in the 6ou(h available at the A-M (ounter (lose it8 seal it by signing $ 6ut it in the slot 6rovided for this 6ur6ose. -he ban, staff 9ill (olle(t the 6a(,et 9hen they (ome for loading (ash in the ma(hine $ (redit the amount to the a((ount. >o9ever8 the (ustomer has to sign an underta,ing 9ith the ban, that he 9ould not dis6ute on the amount (redited. A-M has gained 6rominen(e as a delivery (hannel for ban,ing transa(tions in "ndia. o9 (ustomers 9ill not be levied any fee on (ash 9ithdra9als using A-M $ debit (ards issued by other ban,s. -his 9ill in turn in(rease usage of A-Ms in "ndia. A-M allo9s (ustomers1 -o vie9 a((ount information -o de6osit (heques or (ash -o order (heques and re(eive (ash.

Benef4t2 of ATM1 To t:e ATM Cu2to3er 4/ A-M (ustomer (an utili=e any 6ossible fa(ility availed from the A-M e.g. balan(e enquiry8 9ithdra9al8 de6osits8 et(

2/ Anytime ban,ing8 2@ hours a day8 C days a 9ee, has be(ome a main servi(e to the A-M (ustomers 9ho (annot manage to visit ban, during ban,ing hours ?/ Convenien(e a(ts as a tremendous 6sy(hologi(al benefit all the time @/ Cash 9ithdra9al from any bran(h through A-M To t:e Ban@ 4/ "nnovative8 se(ure8 (om6etitive and 6resents the ban, as te(hnology driven in the ban,ing se(tor mar,et. 2/ %edu(es (ustomer visits to the bran(h $ thereby human intervention. ?/ "nter5bran(h re(on(iliation is immediate thereby redu(ing (han(es of fraud. @/ "t a(ts as a value added 6rodu(t to the ban, so that the ban,s (an attra(t more ne9 generation (ustomers.

C.APTER/ % VARIOUS PRODUCTS A SERVICES OF BANKS

C.APTER/%

VARIOUS PRODUCTS A SERVICES OF BANKS %.# De=o24t2

Ban,s 6rovide various de6osit s(hemes for ,ee6ing the savings of 6eo6le. Some of these s(hemes are (ommon in nature. Ban,s have to (om6ly 9ith the G!no9 0our Customer* .!0C/ norms introdu(ed by the %eserve Ban, of "ndia 9hile o6ening $ allo9ing o6erations in the a((ounts. A fe9 de6osit s(hemes offered by ban,s are as follo9s1

C.ART1 T"PES OF DEPOSITS

#C Current A99ount1 Current a((ount is 6rimarily meant for businessmen8 firms8 (om6anies and 6ubli( enter6rises et(. that have numerous daily ban,ing transa(tions. "ndividuals generally do not o6en this a((ount. Current a((ounts are meant neither for the 6ur6ose of earning interest nor for the 6ur6ose of savings but only for (onvenien(e of business hen(e they are non5interest bearing a((ounts. "n a (urrent a((ount8 a (ustomer (an de6osit $ 9ithdra9 any amount of money any number of times8 as long as he has funds to his (redit.

As 6er %B" dire(tive8 ban,s are not allo9ed to 6ay any interest on the balan(es maintained in Current A((ounts. >o9ever8 in (ase of death of the a((ount holder his legal heirs are 6aid interest at the rates a66li(able to Savings ban, de6osit from the date of death till the date of settlement. Be(ause of the large number of transa(tions in the a((ount and volatile nature of balan(es maintained8 ban,s usually levy (ertain servi(e (harges for o6ening a Current A((ount. $C F4Ee5 De=o24t21 Ban, :i<ed De6osits are also ,no9n as -erm De6osits. "n a :i<ed De6osit A((ount8 a (ertain sum of money is de6osited in the ban, for a s6e(ified time 6eriod 9ith a fi<ed rate of interest. -he rate of interest for Ban, :i<ed De6osits de6ends on the maturity 6eriod. "t is higher in (ase of longer maturity 6eriod. -here is great fle<ibility in maturity 6eriod $ it ranges from 4A days to A years. -he interest (an be (om6ounded quarterly8 half5yearly or annually and varies from ban, to ban,. Foan fa(ility is available against ban, fi<ed de6osits u6to CA5 E3 M Premature 9ithdra9al is 6ermissible but it involves loss of interest. :i<ed de6osits 9ith ban,s are nearly 433M safe as all the ban,s o6erating in the (ountry8 irres6e(tive of 9hether they are nationali=ed8 6rivate or foreign are governed by the %B"*s rules $ regulations and give due 9eightage to the interest of the investors. %C Sa<4n62 Ban@ A99ount1 Savings Ban, a((ounts are meant to 6romote the habit of saving among the (iti=ens 9hile allo9ing them to use their funds 9hen

required. -he main advantage of Savings Ban, A((ount is its high liquidity and safety. Savings Ban, A((ount earn moderate interest. -he rate of interest is de(ided and 6eriodi(ally revie9ed by the government of "ndia. Savings Ban, A((ount (an be o6ened in the name of an individual or in 7oint name of the de6ositors. -he minimum balan(e to be maintained in an ordinary savings ban, a((ount varies from ban, to ban,. "t is less in (ase of 6ubli( se(tor ban,s and (om6aratively higher in (ase of 6rivate ban,s. Savings Ban, A((ount (an no9 be a((essed through A-M*s $ internet. &C Re9urr4n6 De=o24t A99ount1 Under re(urring de6osit a((ount8 a s6e(ifi( amount is invested in ban, on monthly basis for a fi<ed rate of return. -he de6osit has a fi<ed tenure8 at the end of 9hi(h the 6rin(i6al sum as 9ell as the interest earned during that 6eriod is returned to the investor. %e(urring Ban, A((ount 6rovides the element of (om6ulsion to save at high rates of interest a66li(able to -erm De6osits along 9ith liquidity to a((ess those savings any time. FoanL Overdraft fa(ility is also available against %e(urring Ban, De6osits. -he de6osit for %D a((ount is 6aid in monthly installments and ea(h subsequent monthly installment has to be made before the end of the month and is equal to the first de6osit. "n (ase of default in 6ayment8 6enalty is levied for the delayed de6osit. 'C De3at a99ount1

Some ban,s are de6ository 6arti(i6ants. -hese ban,s offer demat a((ounts to their (or6orate (lients. Demat a((ount is 7ust li,e a ban, a((ount 9here a(tual money is re6la(ed by shares. +ust as a ban, a((ount is required if 9e 9ant to save money or ma,e (heque 6ayments8 9e need to o6en a demat a((ount in order to buy or sell shares. A Demat A((ount holds 6ortfolio of shares in ele(troni( form and obviates the need to hold shares in 6hysi(al form. -he a((ount offers a se(ure and (onvenient 9ay to ,ee6 tra(, of shares and investment 9ithout the hassle of handling 6hysi(al do(uments that get mutilated or lost in transit. -he Se(urities and &<(hange Board of "ndia .S&B"/ mandates a demat a((ount for share trading involving more than A33 (ountries. Benef4t2 of De3at A99ount Prote(tion against loss8 theft8 mutilation et( -ransfer of shares immediately Shorter settlement (y(les Prote(tion against bad deliveries.

(C Safe/De=o24t Lo9@er21 Safe de6osit lo(,er is a fa(ility 6rovided by ban,s to their (ustomers to ,ee6 their valuables li,e 7e9ellery8 title deeds et(. Safe de6osit

lo(,er is a steel (abinet having multi6le (ubi(les. -he safe de6osit lo(,er is ,e6t inside the safe room and (an be a((essed only 9ith the 6ermission of the ban, offi(ials. A (ustomer 9ho is in need of a lo(,er has to a66roa(h the ban,. Customer has to mention a 6ass9ord in the a66li(ation form for identifi(ation 6ur6ose 9hen he (omes for o6erating the lo(,er. -he (ustomer has to remit annual rent for using the lo(,er fa(ility. -he (ustomer has full 6riva(y in o6erating the lo(,er. As 6er %B" guidelines8 the 6la(e 9here the lo(,er is ,e6t should be segregated from the 6la(e 9here (ash and valuables are stored using iron grill. ;hen the (ustomer 9ants to o6en the lo(,er8 he has to identify himself by telling the 6ass9ord and sign in a register noting the date and time of o6ening the lo(,er 9hi(h 9ill be (ountersigned by the ban, offi(ials. -he agreement of lo(,er is a (ontra(t of bailment and the ban, (an terminate the agreement and demand the (ustomer to va(ate lo(,er if any of the terms and (onditions in the agreement are violated or the annual rent is not remitted for a long 6eriod. At 6resent all the ban,s are having safe de6osit lo(,er fa(ility.

%.$ CREDIT CARDS1

Credit (ards are innovative ones in the line of finan(ial servi(es offered by (ommer(ial ban,s. Credit (ard (ulture is a old hat in the 9estern (ountries. "n "ndia8 it is relatively a ne9 (on(e6t that is fast (at(hing on. Sin(e the 6lasti( money has today be(ome as good as legal tender more 6eo6le are using them in their day5to5day a(tivities. A (redit (ard is a (ard or me(hanism 9hi(h enables (ardholders to 6ur(hase goods8 travel and dine in a hotel 9ithout ma,ing immediate 6ayments. "t is a (onvenien(e of e<tended (redit 9ithout formality. Credit (ards (an be (lassified as follo9s1 C.ART1 T"PES OF CREDIT CARDS

OFD C%&D"- CA%DS

&; C%&D"- CA%DS

O 5 t8=e2 of Cre54t Car521

#C Cre54t Car51 "t is a normal (ard 9hereby a holder is able to 6ur(hase 9ithout having to 6ay (ash immediately. #enerally8 a limit is set to the amount of money a (ardholder (an s6end a month using the (ard. At the end of every month8 the holder has to 6ay a 6er(entage of outstanding. "nterest is (harged for the outstanding amount 9hi(h varies from ?3 to ?B 6er (ent 6er annum. An average (onsumer 6refers this ty6e of (ard for his 6ersonal 6ur(hase. $C C:ar6e Car51 A (harge (ard is intended to serve as a (onvenient means of 6ayment for goods 6ur(hased at Member &stablishments rather than a (redit fa(ility. "nstead of 6aying (ash or (heque every time the (redit (ard holder ma,es a 6ur(hase8 this fa(ility gives a (onsolidated bill for a s6e(ified 6eriod8 usually one month. -here are no interest (harges and no s6ending limits either. -he (harge (ard is useful during business tri6s and for entertainment e<6enses 9hi(h are usually borne by the (om6any. Andhra Ban, (ard8 BOB (ards8 Can (ard8 Diner*s Club (ard et(. belong to this (ategory. %C In/Store Car51 -he in5store (ards are issued by retailers or (om6anies. -hese (ards have (urren(y only at the issuer*s outlets for 6ur(hasing 6rodu(ts of the issuer (om6any. Payment (an be on monthly or e<tended (redit basis. :or e<tended (redit fa(ility interest is (harged. "n "ndia8 su(h (ards are normally issued by :ive Star >otels8 resorts and big hotels.

NEW T"PES OF CREDIT CARDS #C Cor=orate Cre54t Car521 Cor6orate (ards are issued to 6rivate and 6ubli( limited (om6anies and 6ubli( se(tor units. De6ending u6on the requirements of ea(h (om6any8 o6erative Add5on (ards 9ill be issued to the 6ersons authori=ed by the (om6any. -he name of the (om6any 9ill be embossed on Add5on (ardholder. -he transa(tions made by Add5on (ardholders are billed to the main (ard and debits are made to the Com6any*s A((ount. $C Bu24ne22 Car51 A business (ard is similar to a (or6orate (ard.it is meant for the use of 6ro6rietary (on(erns8 firms8 firms of Chartered A((ountants et(. -his (ard hel6s to avail of (ertain fa(ilities for reimbursement and ma,es their business tri6 (onvenient. %C S3art Car51 "t is a ne9 generation (ard. ;hen a transa(tion is made using the (ard8 the value is debited and the balan(e (omes do9n automati(ally. On(e the monetary value (omes do9n to nil8 the balan(e is to be restored all over again for the (ard to be(ome o6erational. -he 6rimary feature of smart (ard is se(urity. "t 6revents (ard related frauds $ (rimes. &C De74t Car521 Debit (ard is 6o6ularly ,no9n as A-M (ard on the move. -he debit (ard gives the freedom to a((ess savings or (urrent a((ount through

A-M*s at mer(hant lo(ations. Debit (ards are also issued inde6endent of A-M in 9hi(h (ase the (ard is 6resented to the mer(hant establishment at the time of 6ur(hase as in a (ase of (redit (ard. >o9ever8 the a((ount of the (ard holder 9ill be debited instantly 9hen the (harge sli6 is 6resented by the mer(hant establishment instead of the (ard holder remitting the money as is being done in the (ase of (redit (ard. -herefore8 the (ard holder has to ,ee6 suffi(ient balan(e in his a((ount before he uses the (ard. -he debit (ard does have a daily limit 9hi(h (ould be some9here around %s 4A333 at A-Ms and %s 43333 at mer(hant lo(ations. -his again is sub7e(t to the balan(e available in the a((ount. 'C ATM Car51 An A-M .Automated -eller Ma(hine/ (ard is useful to a (ard holder as it hel6s him to 9ithdra9 (ash from ban,s even 9hen they are (losed. -his (an be done by inserting the (ard in the A-M installed at various ban, lo(ation. (C V4rtua Car51 A virtual (ard is a (ard that (an be generated by anybody at any time 6rovided he has already registered his name in the Ban,*s 9ebsite. One (an also set monetary limits for ea(h (ard8 usually limited to the value of the item he intends to 6ur(hase and the value should be limited to his ban, balan(e or the (redit limit. -his (om6letely 6revents misuse. "t is a ,ind of fa(ility offered to e<isting (ardholders at free of (ost.

%.% LOANS "t is an arrangement by 9hi(h a ban, advan(e loans against any se(urity li,e 7e9els8 shares or debentures or insuran(e 6oli(y or 6ersonal se(urity of the borro9er. -he interest is 6ayable on the entire loan amount as de(ided by the ban,. Foans (an be (lassified as follo9s1

C.ART1 VARIOUS T"PES OF LOANS

#C Per2ona oan21 -he 6ersonal loans are granted to any (ustomer or the non5(ustome if the ban, is satisfied 9ith the re6ayment (a6a(ity of the borro9er. -he borro9er should have a steady in(ome. "nstallment (an be 6aid by de6ositing 6ost dated (heques8 authori=ation to debit the amount to the borro9er*s savings or (urrent a((ount8 authori=ation to transfer interest on term de6osit to the loan a((ount8 authori=ation to dedu(t the installment from the salary by the em6loyer and remit to the ban, et(. -he interest varies from ban, to ban,. months to B3 months for re6ayment. Ban,s also (harge time 6ro(essing fee ranging from 4 to ? 6er(ent 6er annum. Personal loans are generally unse(ured be(ause in most (ases there is no 6rimary se(urity. -herefore8 many ban,s demand (ollateral se(urity in the form of landed 6ro6erty8 gold ornaments8 third 6arty guarantee et(. Some ban,s instead of third 6arty guarantee insist that another 6erson should 7oin as (o5obligant. Many ban,s 6refer (o5 obligant as a guarantor be(ause a (o5obligant signs the original loan do(uments along 9ith the borro9er $ therefore has a 7oint liability. -he do(umentation is quite sim6le be(ause there 9ill be only a 6romissory note. $C .ou24n6 Loan21 ormally ban,s allo9 42

>ousing loans are given as dire(t loans and indire(t loans. Dire(t loans are those loans given to the individuals or grou6 of individuals in(luding (o5o6erative so(ieties. -he indire(t loans are the term loans granted to housing finan(e institution8 housing boards et( 6rimarily engaged in the business of su66lying servi(ed land and (onstru(ted house units. Ban,s are 6ermitted to e<tend term loans to 6rivate builders. Ban,s are also granting loans under 6riority se(tor for housing 6ur6ose. E 46474 4t81 Any 6erson above 24 years but belo9 the age of BA years having suffi(ient dis6osable in(ome8 (an avail housing loan from a ban,. Some ban,s 6ermit even u6to C3 years if the borro9er (an 6rodu(e 6roof of suffi(ient in(ome to re6ay the loan. A self5em6loyed 6erson (an also avail of housing loan8 sub7e(t to (om6lian(e of the in(ome (riteria. A3ount of Loan1 -he loan amount starts from %s 2 la,h. >o9ever for 9ea,er se(tions the loan (an be availed even for a small amount. -he ma<imum amount of loan is de(ided after (onsidering the dis6osable in(ome of the borro9er. ;hile (al(ulating the in(ome eligibility s6ouse*s in(ome (an also be (onsidered. -he other fa(tors (onsidered for de(iding the re6ayment (a6a(ity are age8 qualifi(ation8 status of assets8 liabilities8 stability and (ontinuity of o((u6ation and savings history et(. %C E5u9at4ona Loan21

&du(ational loans are e<tended 9ith the aim to 6rovide finan(ial su66ort from the ban,ing system to deserving students for 6ursuing higher edu(ation in "ndia $ abroad. -he main em6hasis is that every student should get an o66ortunity to 6ursue edu(ation 9ith finan(ial su66ort from the ban,ing system on affordable terms and (onditions. All ban,s are offering edu(ational loans8 but the s(hemes differs from ban, to ban,. -he s(heme aims at 6roviding finan(ial assistan(e on reasonable terms to the 6oor and needy to underta,e basi( edu(ation. Stu5ent E 46474 4t81 -he student should be an "ndian national and should have se(ured admission to 6rofessional (ourses through entran(e test 6ro(ess or should have se(ured admission to foreign university. -he student have s(ored minimum B3 6er(ent in the qualifying e<amination for admission to graduation (ourses. Re=a83ent1 Course 6eriod N 4 year or B months after getting 7ob8 9hi(hever is earlier. -he loan has to be re6aid in five to seven years from (ommen(ement of re6ayment. "f the student is not able to (om6lete the (ourse for the reasons beyond his (ontrol8 san(tioning authority may at his dis(retion (onsider su(h e<tensions as may be deemed ne(essary to (om6lete the (ourse. Se9ur4t81 U6 to %s 2 la,h15 no se(urity

Above %s 2 la,h15 (ollateral se(urity equal to 433 M of the loan. Amount of guarantee of third 6erson ,no9n to ban, for 433M of the loan amount. &C Auto3o74 e Loan21 Ban,s are e<tending (redit for 6ur(hase of ne9 t9o or four 9heeler for 6ersonal or 6rofessional use. Ban, finan(e is also available for 6ur(hase of used (ars less than ? years old. &a(h ban, has formulated their o9n s(hemes. )ehi(le finan(e has no9 be(ome one of the highly 6rofitable area and therefore ban,s and other finan(ial institutions are (om6eting 9ith ea(h other for attra(ting the (ustomers8 even by offering some (on(essions. As a result8 the margin8 interest rate $ eligibility (riteria differ from one ban, to the other. -he loans are to be re6aid in ?B to B3 equated monthly instalments. -he ma<imum amount of loan is limited to ? times of net in(ome annual salary sub7e(t to a ma<imum of %s 43 la,h. Se9ur4t81 >y6othe(ation of vehi(le finan(ed by the ban,. Ban,*s lien to be noted 9ith the trans6ort authorities. #uarantee of the s6ouse "n (ase of unmarried8 third 6arty guarantee of suffi(ient means or other (ollateral se(urities a((e6table to the ban,. 'C Mort6a6e Loan21

Mortgage loan is a finan(ing arrangement in 9hi(h a lender e<tends finan(e for a(quisition of real estate against the se(urity of the real estate 6ur(hased out of the loan. -he borro9er e<e(utes a mortgage deed 9hi(h registers a lien on the 6ro6erty in favour of the lender. -he title 9ill be re5transferred 9hen the borro9er re6ays the loan in full 9ith interest. Ban,s 6rovide loanLoverdraft fa(ility against mortgage of 6ro6erty at lo9 rate of interest to 6eo6le engaged in trade8 (ommer(e and business and also to 6rofessionals and self em6loyed8 6artnershi6 firms8 (om6anies8 %"*s and individuals 9ith high net 9orth in(luding salaried 6eo6le. -he 6rodu(t 6rovides an o66ortunity to (ustomers to borro9 against a fi<ed asset at short noti(e.

Re=a83ent1 -he loan has to be re6aid 9ithin a 6eriod of eight years by 9ay of equated monthly installments. -he re6ayment shall (ommen(e from the month subsequent to the month in 9hi(h final disbursement is made or B months from the first disbursement8 9hi(hever is earlier. "n (ase of agri(ulturists the re6ayment is related to the generation of farm in(ome from (ro6s $ other subsidiary a(tivities.

%.& INVESTMENT

"nvestment is the em6loyment of funds 9ith the aim of getting return on it. "t is the (ommitment of funds 9hi(h have been saved from (urrent (onsum6tion 9ith the ho6e that some benefits 9ill re(eive in future. -hus8 it is a re9ard for 9aiting for money. Savings of the 6eo6le are invested in assets de6ending on their ris, and return. "nvestment avenues are the outlets of funds. "n "ndia8 investment alternatives are (ontinuously in(reasing along 9ith ne9 develo6ments in the finan(ial mar,et. An investor (an himself sele(t the best avenue after studying the merits and demerits of different avenues. &ven finan(ial advertising8 ne9s6a6ers su66lements on finan(ial matters and investment 7ournals offer guidan(e to investors in the sele(tion of suitable investment avenues. C.ART1 ALTERNATIVES AVENUES FOR INVESTMENT

#C Pu7 49 Pro<45ent Fun5 DPPFC1

Publi( Provident :und is one attra(tive ta< sheltered investment s(heme for middle (lass and salaried 6ersons. "t is even useful to businessmen and higher in(ome earning 6eo6le. -he PP: s(heme is very 6o6ular among the marginal in(ome ta< 6ayers. Feature2 of PPF 29:e3e -he PP: s(heme is for a 6eriod of 4A years but (an be e<tended at the desire of the de6ositor -he de6ositor is e<6e(ted to ma,e a minimum de6osit of %s 433 every year -he PP: a((ount is not transferable8 but nomination fa(ility is available -a< e<em6tion on investment is made. A (om6ound interest at DM 6er annum is 6aid $C Go<ern3ent of In54a Sa<4n62 Bon51 -he #O" has re(ently started issuing B.A3M bonds 9hi(h are reasonably attra(tive and se(ured investment for individuals and institutions. Feature2 of Sa<4n62 Bon52 "nterest B.A3M. "nterest is 6ayable half yearly or (umulative. "nterest 6ayment is e<em6ted from in(ome ta<. Maturity 6eriod of A years

 Cumulative fa(ility available. %s 4333 be(ome %s 4?CC after A years. omination fa(ility is available

%C Rea E2tate Pro=ert4e21 "nvestment in the real estate is 6o6ular due to high saleable value after some years. Su(h 6ro6erties in(lude buildings8 (ommer(ial 6remises8 industrial land8 6lantations8 farmhouses8 agri(ultural land et(. -hey 6ur(hase su(h 6ro6erties at lo9 6ri(es and do not sale them unless there is substantial in(rease in the mar,et 6ri(e. -he resale 6ri(e 9ill be attra(tive in due (ourse 9hen they (an re(over @ times the 6ri(e 6aid. -his is one attra(tive as 9ell as 6rofitable avenue for investment. &C In<e2t3ent 4n Go 5B S4 <er1 "n "ndia8 there is attra(tion for gold and silver sin(e the early histori(al 6eriod. -hese t9o 6re(ious metals are used for ma,ing ornaments and also for investment of sur6lus funds over a long 6eriod. -he 6ri(es of both the metals are (ontinuously in(reasing. -hese metals are highly liquid8 also 6rovides a sense of se(urity to the investors. -he benefit of (a6ital a66re(iation is also available. As a result8 investment in gold and silver is one avenue for investment. 'C Bon52 A De7enture21 "t is 6ossible to 6ur(hase bonds and debentures of 7oint sto(, (om6anies for investment 6ur6ose. Debenture indi(ates loan given to

the (om6any at a s6e(ifi( rate of interest. Debentures are more 6o6ular than shares due to the safety and se(urity available. &asy transferability by endorsement and delivery. "nvestment e<em6ted from 9ealth5ta<. Maturity 6eriod from A52A years.

C.APTER/ & INNOVATIVE FINANCIAL PRODUCTS A SERVICES

C.APTER/ & INNOVATIVE FINANCIAL PRODUCTS AND SERVICES

#C Mer9:ant Ban@4n61 A mer(hant ban,er is a finan(ial intermediary 9ho hel6s to transfer (a6ital from those 9ho 6ossess it to those 9ho need it. Mer(hant ban,ing in(ludes a 9ide range of a(tivities su(h as management of (ustomer se(urities8 6ortfolio management8 6ro7e(t (ounseling and a66raisal8 under9riting of shares and debentures8 loan syndi(ation8 a(ting as ban,er for the refund orders8 handling interest and dividend 9arrants et(. -hus8 a mer(hant ban,er renders a host of servi(es to (or6orate and thus 6romotes industrial develo6ment in the (ountry. $C Loan S8n549at4on1

-his is more or less similar to G(onsortium finan(ing*. But8 this 9or, is ta,en u6 by the mer(hant ban,er as a lead manager. "t refers to a loan arranged by a ban, (alled lead manager for a borro9er 9ho is usually a large (or6orate (ustomer or a #overnment De6artment. -he other ban,s 9ho are 9illing to lend (an 6arti(i6ate in the loan by (ontributing an amount suitable to their o9n lending 6oli(ies. Sin(e a single ban, (annot 6rovide su(h a huge sum of loan8 a number of ban,s 7oin together and form a syndi(ate. %C Lea24n61 A lease is an agreement 9hi(h a (om6any or a firm a(quires a right to ma,e use of (a6ital asset li,e ma(hinery8 on 6ayment of a 6res(ribed fee (alled rental (harges'. -he lessee (annot a(quire any o9nershi6 to the asset8 but he (an use it and have full (ontrol over it. >e is e<6e(ted to 6ay for all maintenan(e (harges and re6airing and o6erating (ost. "n (ountries li,e the U.S.A.8 the U.!. and +a6an equi6ment leasing is very 6o6ular and nearly 2AM of 6lant and equi6ment is being finan(ed by leasing (om6anies. "n "ndia also8 many finan(ial (om6anies have started equi6ment leasing business by forming subsidiary (om6anies. &C Mutua Fun521 A mutual fund refers to a fund raised by a finan(ial servi(e (om6any by 6ooling the savings of the 6ubli(. "t is invested in a diversified 6ortfolio 9ith a vie9 to s6reading and minimi=ing ris,. -he fund 6rovides "nvestment Avenue for all small investors 9ho (annot 6arti(i6ate in the equities of big (om6anies. "t ensures lo9 ris,8 steady returns8 high liquidity and better (a6ital a66re(iation in the long run.

'C Fa9tor4n61 :a(toring refers to the 6ro(ess of managing the sales ledger of a (lient by a finan(ial servi(e (om6any. "n other 9ords8 it is an arrangement under 9hi(h a finan(ial intermediary assumes the (redit ris, in the (olle(tion of boo, debts for its (lients. -he entire res6onsibility of (olle(ting the boo, debts 6asses on to the fa(tor. >is servi(es (an be (om6ared to del (redre agent 9ho underta,es to (olle(t debts. But8 a fa(tor 6rovides (redit information8 (olle(ts debts8 monitors the sales ledger and 6rovides finan(e against debts. -hus8 he 6rovides a number of servi(es a6art from finan(ing.

(C Forfe4t4n61 :orfeiting is a te(hnique by 9hi(h a forfeitor .finan(ing agen(y/ dis(ounts an e<6ort bill and 6ay ready (ash to the e<6orter 9ho (an (on(entrate on the e<6ort front 9ithout bothering about (olle(tion of e<6ort bills. -he forfeitor does so 9ithout any re(ourse to the e<6orter and the e<6orter is 6rote(ted against the ris, of non56ayment of debts by the im6orters. )C Venture Ca=4ta 1 A venture (a6ital is another method of finan(ing in the form of equity 6arti(i6ation. A venture (a6italist finan(es a 6ro7e(t based on the 6otentialities of a ne9 innovative 6ro7e(t. "t is in (ontrast to the (onventional se(urity based finan(ing'. Mu(h thrust is given to ne9 ideas or te(hnologi(al innovations. :inan(e is being 6rovided not only

for Gstart5u6 (a6ital* but also for Gdevelo6ment (a6ital* by the finan(ial intermediary. *C Re<er2e Mort6a6e1 "n 233C53D8 the ational >ousing Ban, and (ommer(ial ban,s have

introdu(ed an innovative 6rodu(t vi=.8 reverse mortgage to enable the senior (iti=ens to fet(h value out of their 6ro6erty 9ithout selling it. "n normal mortgage8 a home buyer borro9s money to finan(e his home. "n a %everse Mortgage .%M/ the o9ner of a house 6ro6erty surrenders the title of his 6ro6erty to a lender and raises money. Again8 in normal mortgage the borro9er gets B35C3M of the money u6front. But8 in a %M generally the lender does not 6ay the entire amount. On the other hand8 he 6ays out a regular sum ea(h month for the agreed time. -he o9ner8 normally a senior (iti=en8 (an use the 6ro6erty and stay 9ith his s6ouse for the rest of their lives. -hus8 the o9ner (an ensure a regular (ash flo9 in times of need and en7oy the benefit of using the 6ro6erty. Usually8 after the death of the o9ner8 the s6ouse (an (ontinue to use the 6ro6erty. "n (ase8 both die during the 6eriod of the %M s(heme the lender 9ill sell the 6ro6erty8 ta,e his share and distribute the rest among the heirs. "t is (alled reverse mortgage be(ause the 6ayment steam is reversed.' "nstead of ma,ing monthly 6ayments to the lender8 as in the (ase of a regular mortgage8 a lender ma,es regular 6ayments to the senior (iti=en. A %M fa(ilitates to (onvert an immovable asset into an in(ome generating one +C Ne; Pro5u9t2 4n ForeE Mar@et1

e9 6rodu(ts have also emerged in the fore< mar,ets of develo6ed (ountries. Some of these 6rodu(ts are yet to ma,e full entry in "ndian mar,ets. Among them8 the follo9ing are the im6ortant ones1 4. For;ar5 Contra9t21 A for9ard transa(tion is one 9here the delivery of a foreign (urren(y ta,es 6la(e at a s6e(ified future date for a s6e(ified 6ri(e. "t may have a fi<ed maturity for8 e.g.8 ?4st May or a fle<ible maturity for8 e.g.8 4st to ?4st May. -here is an obligation to honour this (ontra(t at any (ost8 failing 9hi(h8 there 9ill be some 6enalty. :or9ard (ontra(ts are 6ermitted only for genuine business transa(tions. "t (an be e<tended to other transa(tions li,e interest 6ayments.

44.

O=t4on21 As the very name im6lies8 it is a (ontra(t 9herein the buyer of the o6tion has a right to buy or sell a fi<ed amount of (urren(y against another (urren(y at a fi<ed rate on a future date a((ording to his o6tion. -here is no obligation to buy or sell8 but namely (all o6tions and 6ut o6tions. Under (all o6tions8 the (ustomer has an o6tion to buy and it is the o6tion to sell under 6ut o6tion. O6tion trading 9ould lead to s6e(ulation and hen(e there are mu(h restri(tions in "ndia.

444.

Future21

"t is a (ontra(t 9herein there is a agreement to buy or sell a stated quantity of foreign (urren(y at a future date at a 6ri(e agreed to bet9een the 6arties on the stated e<(hange. Unli,e o6tions8 there is an obligation to buy or sell foreign e<(hange on a future date at a s6e(ified rate. "t (an be dealt only in a sto(, e<(hange. 4<. S;a=21 A s9a6 refers to transa(tion 9herein a finan(ial intermediary buys and sells a s6e(ified foreign (urren(y simultaneously for different maturity dates5say8 for instan(e8 6ur(hase of s6ot and sale of for9ard or vi(e versa 9ith different maturities. -hus8 s9a6s 9ould result in simultaneous buying and selling of the same foreign (urren(y of the same value for different maturities to eliminate e<6osure of ris,. "t (an also be used as a toll to enter arbitrage o6erations8 if any8 bet9een t9o (ountries.

C.APTER ' OVERVIEW OF ICICI BANK

C.APTER '

OVERVIEW OF ICICI BANK

'.# .ISTOR" OF ICICI BANK "C"C" Ban, 9as originally 6romoted in4EE@ by "C"C" Fimited8 an "ndian finan(ial institution8 and 9as its 9holly o9ned subsidiary. "C"C"*s shareholding in "C"C" Ban, 9as redu(ed to @BM through a 6ubli( offering of shares in "ndia in "ndia in fis(al 4EED. "C"C" Ban, 9as formed in4EEA at the initiative of the ;orld Ban,8 the #overnment of "ndia and re6resentatives of "ndian industry. -he 6rin(i6al ob7e(tive 9as to (reate a develo6ment finan(ial institution for 6roviding medium5term and long5term 6ro7e(t finan(ing to "ndian businesses. "n the 4EE3s8 "C"C" transformed its business from a develo6ment finan(ial institution offering only 6ro7e(t finan(e to a diversified finan(ial servi(es grou6 offering a 9ide variety of 6rodu(ts and servi(es8 both dire(tly and through a number of subsidiaries and affiliates li,e "C"C" Ban,. "n 4EEE8 "C"C" be(ome the first "ndian (om6any and the first ban, or finan(ial institution from non5+a6an Asia to be listed on the 0S&. After (onsideration of various (or6orate stru(turing alternatives in the (onte<t of the emerging (om6etitive s(enario in the "ndian ban,ing industry8 the management of "C"C" $ "C"C" Ban, formed the vie9 that the merger of "C"C" 9ith "C"C" Ban, 9ould be o6timal strategi( alternative for both entities and 9ould (reate the o6timal legal stru(ture for the "C"C" grou6*s universal ban,ing strategy.

'.$ INTRODUCTION OF ICICI BANK "C"C" Ban, is the largest 6rivate se(tor ban, in "ndia in terms of mar,et (a6itali=ation. "t is also the se(ond largest ban, in "ndia in terms of assets 9ith a total asset of %s. ?8BC@.4E billion .USO CC billion/ as on +une ?38 233E8 the total 6rofit after ta< has been %s. D.CD billion. :ormerly ,no9n as "ndustrial Credit and "nvestment Cor6oration of "ndia8 "C"C" Ban, has an e<tensive net9or, of 48A@@ bran(hes 9ith about @8D4B A-MS lo(ated a(ross "ndia and in 4D other (ountries. "C"C" Ban, serves about 2@ Million (ustomers throughout the 9orld. "t is (onsidered as one of the GBig :our Ban,s* in "ndia along 9ith State Ban, of "ndia8 >D:C Ban, and A<is Ban,. "C"C" Ban, 6rovides a 9ide range of ban,ing 6rodu(ts and finan(ial servi(es to its retail and (or6orate (ustomers. "t has a 9ide variety of delivery (hannels and s6e(iali=ed affiliates and subsidiaries that ensure the flo9 of its offerings in the areas li,e investment ban,ing8 venture (a6ital8 life and non5life insuran(e and asset management. -his ban, is also "ndia*s largest (redit (ard issuer. -he equity share of "C"C" Ban, is listed on various sto(, e<(hanges li,e &<(hange. "C"C" Ban, also has the largest international balan(e sheet among all the ban,s in "ndia. "t is also e<6anding its business in the overseas mar,et at an enviable 6a(e. "n P2 Se6tember 233D8 "C"C" Ban, re(orded a 4.4AM gro9th in net 6rofit over P2 Se6tember 233C to rea(h at %s 4834@.24(rores. -he (urrent and savings a((ount .CASA/ ratio of ban, also 9ent u6 from 2AM in 233C to ?3M in 233D S&8 BS&8 Cal(utta Sto(, &<(hange and )adodara e9 0or, Sto(, Sto(, &<(hange et(. "ts AD%s are also listed on the

V424on Our vision is a 9orld free of 6overty in 9hi(h every individual has the freedom and 6o9er to (reate and sustain a 7ust so(iety in 9hi(h to live. M4224on Our mission is to (reate and su66ort strong inde6endent organisations 9hi(h 9or, to9ards em6o9ering the 6oor to 6arti(i6ate in and benefit from the "ndian gro9th 6ro(ess.

'.% PRODUCTS A SERVICES1 "C"C" Ban, offers a host of 6rodu(ts and servi(es to its (lients. -he various ty6es of servi(es are as follo9s1 #C De=o24t2 Savings A((ount Advantage De6osit S6e(ial Savings A((ount Fife Plus Senior Citi=ens Savings A((ount :i<ed De6osits Se(urity De6osits %e(urring De6osits 0oung Stars Savings A((ount Advantage ;oman Savings A((ount Self >el6 #rou6 A((ounts :amily ban,ing $C Car52 "C"C" Ban, is "ndia*s largest issuer of (redit (ards. "t also offers other ty6es of (ard. -he various (ards offered by "C"C" ban, are as follo9s1

 Consumer Cards Credit Cards -ravel Cards Debit Cards Commer(ial Cards Cor6orate Cards Pre6aid Cards Pur(hase Cards Distribution Cards Business Cards %C Loan2 >ome Foans Foan against Pro6erty Personal Foans Car Foans -9o ;heeler Foans Commer(ial )ehi(le Foans

 Foans against Se(urities Foan against #old Ornaments Pre5a66roved Foans &C In<e2t3ent2 "C"C" Ban, -a< Saving Bonds Mutual :unds #overnment of "ndia Bonds "nitial Publi( Offers by Cor6orate :oreign &<(hange Servi(es "C"C" Ban, Pure #old Senior Citi=ens Savings S(heme 'C NRI Ser<49e2 Money -ransfer Ban, A((ounts "nvestments >ome Foans "nsuran(e Foan against

(C "nsuran(e "C"C" Ban, offers various ty6es of insuran(e. >ome "nsuran(e >ealth "nsuran(e >ealth Advantage Plus :amily :loater Personal A((ident -ravel "nsuran(e "ndividual Overseas -ravel "nsuran(e Student Medi(al "nsuran(e Motor "nsuran(e Car "nsuran(e -9o ;heeler "nsuran(e Fife "nsuran(e "C"C" Pru Fife -ime #old

'.& A;ar52 an5 Re9o6n4t4on2 "C"C" Ban, 9as voted as the Most -rusted Brand among 6rivate se(tor ban,s in the 2343 &(onomi( -imes J Brand &quity Most -rusted Brands A9ards and ran,ed Cth in the list of the -o6 A3 servi(e brands. "C"C" Ban, re(eived the 2343 ;orld :inan(e U! a9ard for1 i. ii. iii. &<(ellen(e in %emittan(e Business8 ;orld9ide &<(ellen(e in %" Servi(es8 ;orld9ide &<(ellen(e in Private Ban,ing Business8 APAC %egion

:or a si<th time in a ro98 "C"C" Ban, has re(eived the Most Preferred Auto Foan Brand in the :inan(ial Servi(es (ategory at the C BC Consumer A9ards. "C"C" Ban, has 9on #old in the %eaders Digest -rusted Brands 2343 Consumer a9ard in the :inan(e (ategory for. i. ii. Best Ban, Best Credit Card "ssuing Ban,

"C"C" Ban, amongst the to6 ? to re(eive the :&5&)" #reen Business Feaders A9ard8 in the ban,ing industry.

 "C"C" Ban, 9ins the Asian Ban,er A9ard for Best Ban,ing Se(urity System. :orbes 2333 most 6o9erful listed (om6anies survey ran,ed "C"C" Ban, @th among the "ndian (om6anies and 2D2nd globally. "C"C" Ban, 9ins the Asian Ban,er A9ard for &<(ellen(e in SM& Ban,ing 233E. Mr. . )aghul8 :ormer Chairman8 "C"C" Ban, 9as a9arded the Padma Bhushan'.

C.APTER/ ( DATA ANAL"SIS A INTERPRETATION

C.APTER/ ( DATA ANAL"SIS AND INTERPRETATION

F#C A;arene22 of =eo= e re6ar54n6 <ar4ou2 t8=e2 of f4nan94a 2er<49e2 =ro<45e5 78 t:e 7an@2

Interpretation

From the above chart we came to know that, overall 6er(entage of servi(e (lass 6eo6le having (om6lete ,no9ledge about different ty6es of servi(es 6rovided by the ban, is ?CM8 those having some idea about it is @BM and the 6er(entage of 6eo6le having no a9areness of various servi(es 6rovided by the ban, is 4CM. "t (an reasonably8 be (on(luded that nearly DAM of the 6o6ulation is having a9areness about ne9ly introdu(ed servi(es.

F$ A;arene22 of <ar4ou2 7an@4n6 2er<49e2 =ro<45e5 78 7an@2

Inter=retat4on Ban,s (onstitute various (hannels through 9hi(h servi(es are 6rovided in terms of A-Ms8 Debit Card8 Credit Card8 Phone Ban,ing8 Mobile Ban,ing8 "nternet Ban,ing et(8 of 9hi(h the first si< have been (overed. Amongst these A-M s(ores the largest used servi(e status .2B.3?M/ as indi(ated by above figures. Close on the heels is Debit (ard .4C.CAM/8 Credit (ard .4@.CEM/8 9hile 6hone ban,ing lags behind by s(oring the least .44.D? M./

F %C Sour9e2 fro3 ;:49: t:e re2=on5ent2 6et t:e @no; e56e a7out t:e 4nno<at4<e f4nan94a 2er<49e2.

Inter=retat4on -he above table indi(ates the 6er(entage distribution of a9areness avenues8 the ma7or are in favour of advertisements8 9hi(h s(ore ?@M among different avenues su(h as 6ersonal visit8 e<e(utives of the ban,s8 advertisements and friendLrelatives. ;hile the least s(ore is for 6ersonal visit and that of other sour(es.

Q4) Is your Bank following the Know Your Customer (KYC) norms in providing services

Inter=retat4on -he above table indi(ates the !0C norms follo9ed by the ban,s. -he ban,s are 6roviding the (ustomer 9ith 6ro6er information about various ban,ing servi(es. -he ban,s are trying to find the e<6e(ted servi(e of the (ustomer.

F'C Gro;t: rate of 9re54t 9ar52

!&

)um*er of credit cards

!%
!"

!#

!"

!! $!!' (! $) $!!& $!!(

Inter=retat4on

-he above table indi(ates the gro9th rate of (redit (ards8 9hi(h s(ores 3.? million in the year 233D and it has gro9n u6to 3.B million in 233E.-he gro9th rate is 433M. -his indi(ates that the distribution of (redit (ards is on large s(ale. -he "C"C" Ban, is (onsidered as largest issuer of (redit (ards.

CONCLUSION

CONCLUSION

-he 6ro7e(t of :inan(ial Servi(es of Ban,s 9as underta,en at "C"C" Ban, Ftd. ;or,ing under this 6ro7e(t " learned various servi(es in detail 9hi(h ban,s generally follo9. "t also hel6ed in gaining ,no9ledge about different (on(e6ts 6rovided under different servi(es .

-he :inan(ial Servi(es of the Ban,s has be(ome very vital in the smooth o6eration of the ban,ing a(tivities. -he Pro7e(t 9or, has (ertainly enri(hed the ,no9ledge about the effe(tive management of the various servi(es in Ban,ing Se(tor. Fastly as a((ording to data (olle(tion 9e (on(lude that given findings and suggestions need to be (onsidered 9hi(h (an 6rove to be effe(tive to the Ban,s.

SUGGESTIONS

SUGGESTIONS

Prevention against frauds of Credit Cards -o ta,e ne(essary a(tion against defaulters Providing 9ith 6ro6er information relating to various servi(es

 #uidan(e for investment in various se(urities in order to 6rote(t the interest of investors. A66roa(hing the (ustomers for investment in innovative finan(ial servi(es. S6e(ial s(hemes to be 6rovided on some ty6es of servi(es

BIBLIOGRAP."

BIBLIOGRAP."

BOOKS1 :inan(ial Servi(es $ Systems 5 !.!. Sasidharan 5 Ale< Mathe9s

 :inan(ial Mar,ets $ Servi(es 5 #ordon 5 atara7an

We7 S4te21

999.9i,i6edia.(om 999.i(i(i ban,.(om 999.google.(om

999.as,.(om

ANNE!URE

ANNE!URE

4/ ;hi(h ty6e of finan(ial servi(es are offered by Ban,sQ 2/ ;hi(h ty6es of Credit Cards are 6rovided to the (ustomersQ ?/ ;hat ,ind of a(tions are ta,en by the ban,s against defaultersQ @/ "s the ban, follo9ing %B" guidelines from time to timeQ A/ ;hat are the ste6s ta,en by the ban, to settle the (laimsQ B/ ;hi(h ty6e of innovative finan(ial servi(es are 6rovided by the ban, after FP#Q C/ Are the ne9 (ustomers attra(ted by the 6hysi(al environment of the ban,Q D/ ;hat are the future 6lans of the ban,Q